28 Percent of Cable Subscribers Might Switch to Web Video

JP Morgan equity analyst Imran Khan says a recent survey he conducted suggests that 28 percent of people would consider "cutting the cord" and substituting broadband-Internet-delivered entertainment video in place of their current multichannel video service.

Perhaps significantly, those who report they might consider such a change include at least some potential switchers from the 16 percent of people who report they are not unhappy with their current video provider.

The data is another example of the consumer marketing dilemmas service providers face. You would not be surprised if people who are unhappy with their service say they might switch. But even "satisfied" customers seem to be willing to consider a switch.

In some ways, of course, the survey doesn't indicate as much real churn potential, in the near term, as you would think. The questions do not actually test for the attributes an over-the-top substitute would have to feature, ranging from content choices to price and whether the video can be watched on one or more in-home TVs.

It is easy to say one might "consider switching." It is quite another thing to "consider switching" at high prices, or for services that are not equivalent to current offerings in meaningful ways. Most consumers do not watch more than seven to a dozen channels. If those 12 are among the sources a consumer could get "over the top," at a perceived reasonable price, then switching behavior is much more likely to occur.

At some combination of value, price and ease of use, switching will happen.

28 Percent of Cable Subscribers Might Switch to Web Video - Survey

Sprint Declines Increased Clearwire Investment

Sprint Nextel let a Jan. 2, 2011 deadline pass without exercising its right to buy $760 million of Clearwire Corp convertible debt, ruling out that source of funding for Clearwire. It's a bit hard to tell what the decision means, beyond the obvious unwillingness on the part of Sprint to put more money into a venture that has become a source of tension.

Sprint already owns about 56 percent of Clearwire and uses its network to offer 4G services. Some might interpret the decision as a sign Sprint is not interested in buying the remainder of Clearwire. That might not necessarily be the case, though. If Sprint believes Clearwire will encounter difficulty, Sprint might be able to buy the remaining portions of the company for less money.

On the other hand, Sprint might have other ideas about where to deploy additional capital to support its 4G efforts. If Clearwire proceeds with its plans to sell off excess wireless spectrum, Sprint could purchase that spectrum and build its own LTE network.

http://www.reuters.com/article/idUSN0317604520110103

Apple Dominates Holiday Mobile App Installs

Apple had 61.5 percent of the mobile app downloads, Android had 30.1 percent, according to Flixter. About 7.9 percent of app downloads over the holidays went to RIM devices and Windows Phone had 0.5 percent. The percentages were from 1,027,000 downloads over the holiday week.

Flixter Tells How Mobile App Installs Went Over The Holidays. | VOIP IP Telephony

Best Buy to Launch "Buy Back" Program?

Best Buy is reported to be planning a new "buy back" program aimed at keeping users who constantly upgrade their smartphones off-cycle, and who buy from Best Buy Mobile. The program reportedly will cost $59.99 at the time of handset purchase. Between months one and six of handset ownership, users can then trade-in their device to Best Buy Mobile for 50 percent of the phones full retail value.

Between months six and 12 the device can be turned in for 40 percent of its original value. Between months 19 to 25, users can get back 20 percent of the original retail value.

The offering likely will appeal to users who purchase new smartphones long before their two-year commitments have expired.

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28% Say They Plan to Buy a Kindle

Some 28 percent of Internet users surveyed by J.P. Morgan in December say they either own a Kindle or plan to buy one in the next year. That's a significant number, even if actual behavior doesn't exactly track expectations.

The Kindle is already Amazon's top-selling product, with an estimated more than five million sold since August, and with that kind of buyer intent, the e-reader will continue to be a hot item in 2011.

The survey also bolsters the claim of Amazon CEO Jeff Bezos that iPad owners are buying Kindles: 40 percent of iPad users surveyed already own one, and 23 percent plan to buy one in the next year.

See http://www.businessinsider.com/ipad-owners-are-buying-and-loving-kindles-too-says-amazon-ceo-2010-12.

Almost One-Third Of Internet Users Plan To Buy A Kindle

Is Media Industry at a Crossroads?

When investment capital floods into any industry, you can be sure it is because of expectations of major growth. Conversely, when such capital does not get deployed, you can be equally sure that investors are skeptical about outsize returns.

So it might be said that a lack of fresh investment in "Hollywood" ventures signals lack of expectations. Still, many would argue that the entertainment industry remains at a critical inflection point.

That game-changer is already here in the form of technological innovation: new media, web-based streaming and the hardware that is catching up to these virtual-era breakthroughs. But all of those developments might lead investors to conclude that fresh capital is better deployed in companies that try to harness new media, not the legacy content creators.

Calling Netflix or Huffpo: After 2010, Hollywood Needs a Game-Changer

TV apps will be key focus at CES 2011 - Lost Remote

While new tablets, smartphones and 3D television sets will grab much of the attention at the upcoming Consumer Electronics Show, perhaps another important theme will be the surge of internet-connected sets and TV apps.

“TV manufacturers see the opportunity to provide that content built in,” says Jason Oxman, senior vice president of the Consumer Electronics Association.

TV apps will be key focus at CES 2011