Consumers Want Choice: Will They Get it?

There's no question but that the central value multi-channel video services provide is "more choice."

Up to this point, industry economics have worked fairly well. Distributors have been able to build sustainable businesses delivering more choice, adding more niche channels to a basic tier.

As recurring fees continue to increase, resistance will grow, some believe. Analysts at the Diffusion Group, for example, say more consumers are unhappy than happy about having to buy a bundle of channels to get access to the relative few they actually watch.

An argument can be made that any move to full a la carte buying will reduce choice, as most smaller networks will not be able to create advertising revenue streams under such a regime.

You will know a tipping point has been reached when the first major network decides it can forego exclusive distributor carriage. That tipping point still seems relatively far off, though. It is hard to see any change from the current bundled offerings that is anywhere close to revenue neutral, even for the largest networks. Small networks will be hurt by a la carte.

http://asktdg.com/blogs/tdg-opinions/archive/2009/04/10/paytv-operators-must-embrace-expanded-consumer-choice-that-is-if-they-hope-to-avoid-becoming-dumb-pipe-providers.aspx

Broadband Stimulus "Ts and Cs" Might be Decisive

There's lots of speculation about whether large telcos will apply for American Recovery and Reinvestment projects to be sponsored by the National Telecommunications & Information Administration portion of the act. Much depends on the definitions and strings.

Though the precise meaning of "underserved," "unserved" and "broadband" are important, other apparently smaller matters, such as wholesale obligations, could be decisive. Carriers large or small are unlikely to apply if it means any new infrastructure, or an entire network, would be subject to mandatory wholesale rules, beyond those already in force.

At the moment, nobody can be sure what those terms and conditions might be.

http://www.dailytech.com/Broadband+Firms+Waiting+to+Apply+for+Stimulus+Funds/article14840.htm

Broadband Stimulus: Internal Contradictions

Not that it really will matter, but among the more-obvious internal tensions built into the "broadband stimulus" provisions of the American Recovery and Reinvestment Act is the difference between "create jobs" and "create broadband." ARRA is supposed to be about jobs, broadband is secondary.

The other obvious intellectual inconsistency is the preference for non-profit applicants for the National Telecommunications & Information Administration program, with the concomitant preference for projects that can be self-sustaining after program funds are exhausted.

The logical way to create self-sustaining capabilities is to allow for-profit entities to create a business case, and then fill a need by building new broadband infrastructure, or by creating other enabling mechanisms to encourage greater use or greater speeds and capabilities.

But that would be business logic, not political logic. There is a logic to political rationality. It just isn't the same thing as business rationality.

UC: Video as Lead App

Of late, unified communications has been as much about conferencing as anything else, despite all the effort that continues to be made to position unified communications as a "super category" that includes elements of phone systems, messaging, desktop and mobile communications.

UC integrator U4EA Technologies, for example, now has a partnership with Vidtel. By combining U4EA’s Fusion series Multi-service Business Gateways (MSBG) with Vidtel’s new video calling and conferencing services, the two companies hope to ensure video call quality and the fully utilization of WAN bandwidth.

U4EA says it is the only QoS technology specifically designed to support unified communications, including video applications.

Mobile and Proximity Marketing Won't Avoid Typical Mistakes

Every new medium inevitably begins life as a new way of doing something that already exists. Mobile marketing, proximity marketing and other location-based media will not escape this pattern, either. Still, practitioners seem more widely attuned to the idea that conversations are the perhaps-uniquely new aspect of mobile marketing. In fact, facilitating conversations might be the most significant new development for practitioners whose traditional mission has been to position and sell things.

http://ow.ly/2Guv

In Stadium Proximity Communications Now Available

One of the chief advantages mobile devices possess, compared to more location-based devices such as PCs, is locational: mobiles are with users virtually all the time. That means proximity communications and marketing, though developing, hold so much promise. Consider sporting venues, where all sorts of undesirable behavior can, and does, occur.

So In Stadium Solutions provides messaging capabilities in sports and other entertainment venues allowing attendees to send messages directly to stadium medical or security personnel.

http://www.instadiumsolutions.com/index.php?option=com_content&view=article&id=44&Itemid=53

iPhone, BlackBerry Downloads: Different Pattern?

Games lead iPhone app downloads, comScore reports. Nearly half of the the 25 most popular mobile apps are games. Among non-gaming applications, social networking applications: Facebook and MySpace Mobile also can be found. So far, at least, the iPhone, though used by business end users, does not seem to have broken out of its "consumer" appeal base.

Research in Motion's BlackBerry App World has not been in operation long enough to determine whether BlackBerry users behave differently, but at least initially, one suspects that social networking apps are among the top 10, whether that is Facebook or instant messaging clients. One perhaps notable difference is downloads of the Opera Mini browser, for perhaps-obvious reasons. BlackBerry users tend not to rave about the default BlackBerry browser.

http://ir.comscore.com/releasedetail.cfm?ReleaseID=375787

New Rules for Marketing

Listening to consumers is more important than talking at them, says Advertising Age. "The consumer is not a moron, she's the person defining your brand."

You can't hide the corporation behind the brand anymore, or even fully separate the two. Radical transparency now means bad corporate behavior will damage subsidiary brands, while good behavior also can help subsidiary brands.

Public relations now is a primary concern for every chief marketing officer and brand manager. If "marketing" and "PR" are not the same department, tear down the wall. Spend time deciding whether PR is underleveraged in your organization, says Advertising Age.

Cause marketing isn't about philanthropy, it's about "enlightened self-interest."

Social media is not a strategy in and of itself. Nothing will substitutute for good products.

http://adage.com/digital/article?article_id=135943

Business Wireless Spending to Accelerate

Some 45 percent of business decision makers polled by Harris Interactive state that wireless applications are important or absolutely essential to remaining competitive in today’s highly competitive marketplace. The survey of 700 small, medium and large businesses found the companies surveyed expect a 15 percent improvement in their bottom-line over the next 12 months.

Improved communications were seen by 23 percent of respondents. About 18 percent expect improved employee efficiency. Another 14 percent expect productivity and process improvements. An equal percentage expect improved customer care. About 11 percent expect cost reductions.

Whether one agrees or not, respondents indicate that, for whatever reasons, they are increasing their wireless spend. The survey shows the wireless portion of the companies’ voice and data infrastructure increasing from 35 percent over the last twelve months to 41 percent over the next twelve months, an increase of nearly 20 percent.

http://www.ctia.org/media/press/body.cfm/prid/1813

Sprint Proximity Marketing Campaign Launched

Sprint is supporting a proximity marketing campaign at Kansas City's Sprint Center.

http://billboard.prweb.com/releases/2009/03/prweb2269584.htm

Proximity Marketing for "Fast and Furious"

Interactive trailers for the movie "Fast and Furious" are available for download free-of-charge to Bluetooth enabled mobile phones at select cinemas and other public locations throughout Germany. The interactive trailers offer the mobile viewer a one-click access to "Fast and Furious" sweepstakes contest and allows them to purchase movie tickets for upcoming screenings of the film in select cinema chains in Germany.

http://sev.prnewswire.com/advertising/20090331/SF9150631032009-1.html

DMA Bluetooth Marketing Guidelines Released

New mobile marketing guidelines for Bluetooth campaigns have been developed by the Direct Marketing Association for the U.K. and other markets, and are designed to protect users from "spam." Good move.

http://www.dma.org.uk/_attachments/resources/4756_S4.pdf

Bluetooth-Based Mobile Marketing Campaigns

Though most mobile marketing campaigns up to this point have been based on use of text messaging (short message service), more common availability of Bluetooth also offers an opportunity for proximity messages over short distances, without the expense of the data network, says Mark Brill, Direct Marketing Association Mobile Marketing Council chairman.

That means creating a local Bluetooth zone at a physical location with high traffic, such as restaurants, public transit stations, bars or retail locations, able to reach users within a relatively confined area of possibly 260 feet in diameter.

"The key to a successful Bluetooth proximity marketing campaign is to provide a clear incentive or offer, explain why you are communicating and gain the trust of the user," he says.

About 30 percent of people have their Bluetooth turned on all of the time, mostly to use hands-free headsets. The TV show "Lost" has used such a technique to promote the new season by allowing users to download wallpaper and ringtones, images or a trailer.

Bacardi Rum has used Bluetooth at music festivals, sending drink vouchers and allowing users to send their own photos and messages to a large screen at an event.

Levi’s Jeans has equipped personnel with backpacks equipped with Bluetooth units and small screens.

Still, there are issues. A Bluetooth connection to a mobile does not provide the marketer with a phone number or user information, so tracking a user requires some form of registration. As always, opt-in rules are needed as well.

http://www.mycustomer.com/cgi-bin/item.cgi?id=134286

Mobile Fusion: Mobile Rendering on the Fly

MoFuse, or Mobile Fusion, is a Web application that allows a user or company to easily and instantly create a mobile version of a blog or Web site.

If a blog or site has an RSS feed, MoFuse will use that as the main source of content for a new mobile site. The advantages are obvious. Content creators can continue to create "PC" sites and MoFuse will do the translations. MoFuse also can create static content pages.

http://fuelingnewbusiness.com/2008/08/28/mobile-marketing-for-advertising-agencies/

Best New Google Voice Feature: Visual Voicemail

Some of us prefer text messages of any sort to voice messages of any sort. So the best new feature of Google Voice, compared to GrandCentral, is the automatic speech-to-text feature, so now I read my "voice" mails, instead of "listening" to them. Very useful.

Mobile Marketing Growth: Inevitable Result of Mobile Web

There's a simple reason so many executives and practitioners now are exploring mobile marketing: Industry executives widely believe mobile computing devices will be the "primary" Internet access device for most people, globally, by 2020.

More than three quarters of the expert respondents (77 percent) recently surveyed by the Pew Internet & American Life Project said they agreed with a

scenario that posited that the mobile computing device will be the primary Internet communications platform for a majority of people across the world by 2020.

http://www.pewinternet.org/~/media//Files/Reports/2008/PIP_FutureInternet3.pdf.pdf

Advertising Hits Tipping Point; Mobile Video Hasn't

It is probably worth noting, with significant attention focused on substitution of mobile and Internet video for traditional packaged multi-channel video, that there's lots of activity, money and attention focused on substitution of other services such as advertising.

And advertising already is at an inflection point: video isn't there yet. That's important for anybody who thinks they may have a chance to build a business based on changes in user behavior.

And inflection points are crucial. Move too early and you die. Move too late and you miss the opportunity.

The analogy: assume firms have a chance to establish themselves when water turns to ice or to steam. Since most major changes in established markets do not occur overnight, the analogy is a gradually rising or falling temperature. For a long time, it appears as though not much is happening.

But then the quantum change occurs. Almost instantly, water changes to gas or forms ice.

That's pretty much what happened to the U.S. newspaper business in early 2009: an accumulation of decades worth of changes produced a quantum change. Video is not there yet. Advertising is, in at least one segment of the business.

Since the tipping point has been reached, we should expect change at a faster rate than has been happening.

http://www.fiercewireless.com/ctialive/story/ctia-scorecard-mobile-content/2009-04-06

Skype Founders Want to Buy it Back

Skype's founders are said to be raising money to buy Skype back from eBay. They sold it for $3.1 billion and eBay appears to want $1.7 billion. Aside from the obvious deal economics, Skype's founders have gone almost nowhere with their follow-on video business.

http://www.nytimes.com/2009/04/11/technology/companies/11skype.html?_r=4&partner=rss&emc=rss

EU Likely to Force Mobile Providers to Permit Skype Use

The European Union (EU) reportedly is preparing to force mobile providers to allow use of VoIP services including Skype over their networks, a move that would not be unexpected. EU Telecoms Commissioner Viviane Reding recently reemphasized her opposition to application blocking of this sort, and that tends to signal action by the EU.

Deutsche Telekom's T-Mobile unit currently blocks Skype access from Apple iPhones, for example, though access is possible using Wi-Fi, roughly the same policy AT&T uses.

It is understandable that mobile providers are not anxious to put themselves out of business. But VoIP blocking just isn't the right thing to do.

http://www.tgdaily.com/html_tmp/content-view-42003-118.html

DirecTV Sees No Signs of Consumer Retrenchment

Despite the widespread conventional wisdom that consumers "must be" dropping a wide variety of communications and entertainment services, the most-recent DirecTV Group Inc. financial results do not support the thesis. DirecTV added 301,000 net subscribers in the fourth quarter of 2008, the most net subs it has added in more than three years.

DirecTV also had what it called its "best year ever," as the company added 861,000 net new customers in 2008. Net subscriber additions of 301,000 in the fourth quarter were nearly 10 percent higher than last year's fourth quarter.

We'll have to see what the company reports for the first quarter of 2009.