RCN Rate Hike Raises Ire

I have yet to meet or hear from a video customer who actually was happy about a rate increase, so it is no surprise RCN customers are sqwaking about the latest rate increase they are facing.

Up to this point there have not been many options. The favorite channels most of us watch (a different package for every single viewer) are not available a la carte. In truth, for a package of 10 to 15 channels, especially featuring sports content,  it is doubtful a consumer can save much over current packaged rates.

But it is unlikely distributors can "forever" expect rates to be hiked without something breaking, somewhere.

In my case, two channels plus occasional use of a couple others, justify the entire basic package. But as rates continue to climb, so does the level of irritation.

So far, those two essential channels are not available online, or a la carte.

Of course, distributors aren't dumb. They can assume lots of viewers will be sorely tempted to opt for packages that deliver several channels of most interest, possibly with a "casual viewing" video on demand feature, that might satisfy many current customers.

Nobody knows whether a la carte or expanded VOD options would be revenue neutral. Distributors and networks have reason to fear any change in that direction would not be revenue neutral.

But I don't think some move in the direction of flexibility is avoidable forever. It might be fine positioning for a distributor to say the fees are higher, but so are the variety of channels.

That does not correspond with the way most people watch linear TV, though. Most people do not watch, or even want, most of those channels. And there lies the rub.

There are some precedents, however. Premium channels such as HBO always have been offered a la carte.  But the movie channels, pay per view and VOD always have been fully subscriber-funded formats.

Ad-supported channels have reason to fear the economics of a la carte choice, though. Still, if you look at your on-screen guide, you can see some "natural" packages based around sports, news or entertainment that suggest logical packages that are more targeted than what is possible today. That might be a half step that could work, if most customers do not choose those options.

The system isn't seriously broken yet. But each rate hike increases customer dissatisfaction just a bit more. Someday, it will break.

http://www.dslreports.com/shownews/RCN-Raises-Rates-Adds-Downgrade-Fee-102035

AT&T Reports Ap 22: What to Look For

AT&T reports first quarter results on April 22. I suspect most of us will be watching for any weakness in wireless net additions or average revenue per user. Everybody expects residential voice lines to decline, so the issue there might be a slowing of the rate of loss. Business customer revenues likely will be considered a success if growth essentially is flat.

A consumer landline loss in the 10 to 12 percent range is probably to be expected, while enterprise segment revenue likely will be off a couple to several points. None of that would be unexpected.

Video entertainment subscribers should grow, but will not likely have a material effect. Broadband net additions will be less robust than in the first quarter of 2008.

Canadians Heavy Online Video Consumers

In February 2009 21 million Canadians viewed more than 3.1 billion videos online, says comScore. The average Canadian online video viewer spent 10 hours viewing videos in February, up 53 percent from their average viewing time last year.

Shift in Unified Communications Value?

By the end of the year, or at least within the next couple of years, we all might have a different perspective on unified communications, traditionally viewed as something involving business phone systems, instant messaging and conferencing apps.

There are several reasons, among them a view that the "value of traditional desk phone and desktop PC is diminishing." Remote workers and mobility might become the lead value proposition for some buyers. For others, there might be an equally strong shift to IP-based conferencing as the lead application, based on "economic uncertainty as companies look to cut cost" in areas such as travel.

Integration of communication functions directly with business applications is an on-going and underlying trend that likewise could shift attention on UC value.

http://horizonwatching.typepad.com/horizonwatching/2009/04/primer-on-unified-communications.html

97% of Business Communications Now is Email

As much as 97 percent of all business communications now occurs using email, says Bakbone. And though some executives would not place much credence on the financial impact of email outages, which some estimate can cost a 500-person enterprise about $1.5 million in lost productivity, the cost of paying employees who cannot use basic business communications such as email has been calculated by multiplying the total hours of downtime per year by $18,000 per hour.

For an enterprise of any size, that cost can range from “up to $100,000” to “up to $500,000,” Bakbone says. Then there is the cost of information technology resources that must be consumed to get email systems back in operation.

Whether one considers such soft costs significant or not, the typical email outage lasts 69 minutes, and annual email outages can total 32.1 hours a year, Bakbone says.

http://www.itbusinessedge.com/offer.aspx?o=03830006em0420

Sampling Works at iPhone App Store

Encouraging potential customers to sample your wares is a time-tested demand stimulation technique, and it seems to work on the Apple App Store as well, an analysis of data by Flurry indicates. Among the strongest marketing plays in the App Store are free trials of a game or application.

There's not much surprise about why this works. Potential buyers unfamiliar with a company or application can see for themselves whether any particular app is useful or entertaining before committing to a purchase.

66 Million U.S. Consumers Now Multi-Task

Over 66 million consumers are using the Internet while camped out on their sofas watching TV, according to market research firm In-Stat. About a third of male respondents to a recent survey say they "sometimes" do so. About 25 percent of female respondents say they use a PC while watching TV.

One-fifth of all respondents reported doing instant messaging while watching TV.

That's both good news and bad news. The good news is it suggests there might be some upside for content, application providers and service providers in the area of integrating PC, mobile or Web features with the TV experience.

The bad news? One reason some people might be time-sharing is because the TV content is not that compelling, compared to alternative pursuits such as using the Internet.