Xbox LIVE Gold Members Watch 1 Hour a Day of Streaming Video

About 42 percent of Xbox LIVE Gold members in the US are watching an average of an hour of television and movies on their Xbox, every single day.

1 Billion Entertainment Hours spent on Xbox LIVE every month

Two Hours a Day of HDTV Per User Will Require 548 Times More Access Bandwidth

Akamai President David Kenny says that in five years the average user will consume two hours a day of high-definition video. To accommodate this insatiable demand, the Internet will need to increase capacity 548 times from where it is today.

That could have all sorts of implications. People might have to pay much-higher fees for bandwidth. People might refuse to pay, and limit their consumption of HD video. People might decide linear delivery and on-demand consumption (store and forward) actually provides high value at reasonable cost, and wind up watching most of their HD video on linear services that have digital video recorder features.

Application providers or service providers might come up with new ways of alleviating the bandwidth necessary to consume on-demand video. Advertising might wind up being a lot more important than it is today. Or all of the above, and other steps, might have to be taken.

Digital Primetime Arrives Just in Time to Crush the Net

Elections Have Consequences: Net Neutrality Might be One of Them

Elections have clear consequences, where it comes to the telecommunications industry, because of the foundational role of regulations in shaping the business. So it probably is noteworthy that 95 Congressional and Senate candidates who signed a pledge supporting "network neutrality" lost their races on Nov. 2, 2010.

The pledge, circulated by a group called the "Progressive Change Campaign Committee," was signed by all 95 candidates, and all 95 lost their races.

Net neutrality gets election night shellacking

4% Use Check-In Services

About four percent of online adults use a service such as Foursquare or Gowalla that allows them to share their location with friends and to find others who are nearby, according to the Pew Research Center’s Internet & American Life project. On any given day, one percent of Internet users are using these services.

In a May 2010 survey, five percent of adult Internet users said they had used such a site.

Some seven percent of adults who go online with their mobile phone use a location-based service, the report suggests. About eight percent of online adults ages 18 to 29 use location-based services, significantly more than online adults in any other age group.

24% Provide Mobile Social Network Updates

Mobile status updating services have grown in popularity over the past few years, from six percent of online adults saying they had used such a service in August 2008 to 24 percent in September 2010.

Related internet activities | Pew Internet & American Life Project

Facebook "Single Sign On" Deepens Mobile Integration

 Facebook's new "Single Sign On" capability means smartphone owners can sign up once on Facebook and then use those credentials on the device for any other application that supports the "single sign on" feature.

This works on any Android phone or any iPhone, iPad or iPod Touch device that supports multitasking (most iOS4 devices).

The Facebook Blog

Time Warner May Consider Longer Delay for Netflix, Redbox

Time Warner may consider extending the 28-day additional release window delay for new release movies. In recent days, Time Warner has allowed rental services such as Netflix Inc. and Coinstar Inc.’s Redbox kiosks to receive its DVDs 28 days earlier than content can be streamed to online viewers.

Time Warner apparently sees evidence that the 28-day delay has the expected effect: it pushes users to other modes of consumption, such as buying a DVD, which is probably the key upside for the studio. And that has Time Warner taking a look at the merits of a longer release window for streaming access.

“So far the 28-day window has clearly been a success versus no delay,” Time Warner Chief Executive Officer Jeff Bewkes says. “The question of whether we ought to go longer is very much under scrutiny. It may well be a good idea."

All of this is important for video distributors as the release window--the amount of time lapsing between the end of theatrical exhibition and first availability through other channels--largely determines the volume of buys or rentals and the prices at which views cost. Delaying online viewing appears to have the effect of increasing DVD sales.

Time Warner May Consider Longer Delay for Netflix, Redbox - BusinessWeek

Windows Phone 7 Seems to be a Top App Developer Platform

Among publishers and developers, iPhone, Android, iPad, RIM and Windows Mobile were the
top five mobile application platforms of choice in 2010, according to Millennial Media. The Android, iPad, Windows Mobile, and Symbian platforms saw the most growth from 2009. The iPhone and RIM platforms saw year-over-year decreases.

Windows Phone 7 is tied for second place with iPad as the platform that will be added to most publishers’ and developers’ plates in the coming year. At 29 percent interest, Android is challenging the Apple iPhone as the top development platform.

Of those advertisers and marketers developing applications, the entertainment vertical is the most-active sponsor of new mobile apps, followed by technology, media, retail and consumer packaged good verticals.

Only 6.7 percent of developers use an internal sales force, as you might guess. Instead, developers sell using app networks, and rely on advertising networks to generate revenue.

The results were generated by surveys of  600 digital and mobile industry professionals in November
2009 and August 2010. In 2010, 41 percent of survey respondents classified themselves as an agency advertiser or marketer, 30 percent as an application developer, and 29 percent as a publisher.

read more here

Smart Meters Might Not Deliver As Much Value as Many Believe

Smart metering is a not a cure-all for the utilities industry’s woes and there is a strong risk it will not deliver on some of its promises, Ovum finds. Smart meters should dramatically affect labor cost and operating costs, to the extent such devices automate data collection chores.

But there are other problems smart meters cannot directly address, such as carbon dixoide emissions, infrastructure requirements and higher raw materials costs.

Nor will smart meters directly address an aging workforce or demand issues caused by the sluggish economic recovery. Using such meters in a control capacity, to manage consumption, might hold more promise, if customers agree to such management.

Strong risk smart meters will not deliver on some promises:

Does Telco Revenue Future Require Bandwidth QoS?

A new survey of U.S. communications and media executives by STL Partners offers a couple interesting insights. First, "telcos" are largely assumed to own mobile spectrum and networks.

That does not mean every entity can create a business case around mobility in a direct sense. Keep in mind that it is not simply telco executives who think this way, but significantly that media and content executives make the assumption.

Smaller providers might not be able to justify anything other than working with other mobile providers in one way or another. But tier-one providers virtually must be mobile providers, the survey suggests.

Second, future strategies to increase broadband access revenues virtually require the absence of regulatory rules that ban packet priorities and quality of service mechanisms. About 27 percent of respondents believe that telcos must find new revenue sources as a way of improving the economics of the broadband access business. More than 25 percent say more-efficient networks also are required.

Nearly a quarter of the 120 respondents also believe that one of the buest ways to create new revenue streams is to "charge upstream players for value-added services." Aside from building content delivery networks, it is difficult to envision how mobile service providers and fixed-access networks could add value directly to the access product without having the ability to prioritize traffic.

There are, of course, other potential ways to leverage customer relationships, customer data or billing capabilities in ways that partners might find useful. Still, a strict network neutrality regime would severely crimp the ability to add value in the basic access product.

$Multi-Billion Telco 2.0 Growth Opportunities in North America: Can Telcos Act in Time? - STL Partners

Time Warner Cable Loses 155,000 Video Subscribers

So far in the third quarter, both Comcast and Time Warner Cable have reported video subscriber losses. That in itself would not be unusual, given a market share shift in favor of telcos and satellite providers of late.

Comcast earlier reported a loss of 275,000 subscribers in the third quarter, while Time Warner Cable says it lost 155,000 video subscribers.

Those sorts of statistics sometimes are assumed to be evidence of video "cord cutting," though. It isn't possible yet to make a judgment of that sort, in part because the satellite providers have yet to report subscriber numbers. Only by adding up results at all the leading cable, telco and satellite providers can we determine whether the market is growing, flat or shrinking.

And even if the market is shrinking, as was the case in the second quarter, it isn't completely clear that customers are giving up on multichannel video service for streaming, for over-the-air TV, giving up TV itself, or temporarily suspending service to save some money. It might be years before we can determine whether there has been a permanent shift of behavior, or only a short-term decline because of tougher economic conditions, less new housing construction or a consolidation of households. All of those will put pressure on subscriptions by reducing the potential pool of buyers.

Time Warner Cable - Investor Relations - News Release

FaceCash Talks About Mobile Payment Business

Scale ultimately is key when any company seeks to create a viable payments business to rival, or at least displace or augment, some amount of debit card or credit card payments.

20% of Viewers Might Have Trouble Watching 3D TV

As much as 20 percent of the viewing public might face difficulties watching three-dimensional television.

There's about eight percent to 10 percent of the population that can't see the 3D effect due to a lazy eye muscle; if the person is color blind, says Bob Seidel, CBS Advanced Technology and Engineering VP.

'There is another percentage that can develop motion sickness or other motion-related issues, and then there are some that develop headaches. What percentage still requires further research, but it could be as high as 20 percent," says Seidel.

Unfortunately, I am among the percentage that will never buy a 3D set for precisely that reason.: it causes motion sickness when I watch.

Study: 20% of Viewers Might Have Trouble Watching 3D on Television - The Hollywood Reporter

The Other Location Shoe Drops: Facebook Deals. Will It Discount Rivals?

Facebook is launching "Deals," a combination location-plus-promotion" feature that offers value to end users who use their mobile devices to "check in" at participating retailer locations, and can get discounts or other offers when doing so.

But here's the interesting angle: so far, Facebook is not charging retailers for the privilege of creating offers and sponsoring them on U.S. Facebook pages.

To start, Facebook has announced deals with 22 partners, while 20,000 small and medium sized businesses on Facebook also have access to the "Deal" creation tool.

Gap is giving away 10,000 free pairs of blue jeans. And when they run out of those, they’re giving 40 percent off of any product when someone checks-in to any of their nationwide stores.

A smaller cinema chain, Alamo Draft House, is giving away a free pint glass when you check-in. And they’ll have offers for special events for friends.

Deal is not a full-on "Groupon" app, but it could lead in that direction. And though there is no certainty about whether "Deal" becomes a for-fee service, Facebook could be disruptive if it decides not to charge partners, as a way of getting more traction. As always, it is difficult to compete with a firm that gives away the product you are trying to sell.

The Other Location Shoe Drops: Facebook Deals

Levin Defends Fact-Based Approach to National Broadband

A lot of effort went into assessing facts when the "National Broadband Plan" was developed. And some of those facts are inconvenient, in some quarters.

"What we discovered when we went out there is that 90 percent of people had broadband available to them, but a much smaller percentage actually were subscribing to service," says Blair Levin, former executive director of the National Broadband Plan, and now a fellow at the Aspen Institute.

"Affordability was a factor for some people, but the larger issue has to do with relevance," says Levin.

That's a big deal. If one assumes the "problem" is "product availability," one set of actions is warranted. If one assumes "product demand" is the issue, then different solutions are necessary.

The plan actually found that "ability to buy" was not the big issue. Rather, demand was the issue. "Even though there are a lot of low-income people who may not be able to afford multichannel video (cable TV), there is still a high proportion of people subscribing to the service," Levin says. But the cost of service is not the biggest issue.

"The big difference between TV and broadband is that to watch TV, you don't have to be literate," Levin says. "The same is true of phone service. You don't need to be literate to use a cell phone, so penetration of those services is higher."

The implication is that once citizens and consumers see the value and relevance, they buy. But that's a different problem than "I want to buy, but cannot because there are no facilities."

There are some areas, mostly rural, where sheer access is an issue. But that problem is a "targeted" problem that can be overcome by a relatively targeted approach to new facilities.

"We can solve about 90 percent of the broadband access problem for a relatively small amount of money, like around $10 billion," Levin says. "Of course, if you tried to solve 100 percent of the problem, it would be more difficult and more expensive."

In a capital-intensive undertaking, getting the last couple of percentage points of improvement is hugely expensive, unless one is flexible about the methods used to solve the problem, in other words. In some cases, building landline facilities is not economically rational, since there already exist other ways to deliver service to the last couple of percent of potential users using satellite services, while terrestrial wireless might make sense for five percent of locations.

Neither private industry nor governments anymore have the luxury of solving access problems with one single approach, no matter what the cost.

The man behind the National Broadband Plan