More Consumers Cord "Shaving"

"Cord cutting," the abandonment of video entertainment services by consumers who might substitute online video, broadcast TV or "no TV" for their former subscriptions are a continuing concern for all video subscription providers.

Most studies continue to show that the threat has not become a serious reality. Just 3.7 percent of the 1,000 Americans surveyed by Altman Vilandrie & Co., for example, reported actually cutting the cord and stopping their subscription to TV service.

But 20 percent of consumers say they now "shave," spending less money on cable TV service compared to the previous year, thanks to the wealth of online video.

At least 20 percent of those under 44 say they have "seriously considered" cutting the cord, however, the survey also found. More Consumers 'Shaving' Cable

Longer term, this is going to be a bigger problem, though. At some point, a combination of more content available online, higher subscription prices and more content licensing by content owners will start to tip the scales. Major change will not happen, though, until the owners of the most-popular network TV fare decide to make their content available without requiring "sell through," where a consumer has to buy a full video subscription first, before becoming eligible to watch streamed video on other devices, inside the house or outside the home.

Google Files for Patents on Ability to Deliver Ads that Incorporate Noise, Temperature, Light Indicators

Mobile devices are interesting to marketers of all types because of the feedback and context such devices can provide, compared to any other medium.

The mobile capabilities of note for for advertising include all the sensors a mobile phone can include, building on location, but possibly including other background factors such as local temperature, ambient sound and light.


Google, in fact, has filed for U.S. patent 8,138,930, describing ways that a phone, or other device, can detect local temperature as well as the ambient sound and light levels, all of which could aid message targeting.

Many Small Businesses Don't Need a Website?

Though a branded website might once have been an essential marketing tool for most small businesses, some now argue it is less essential. It might go too far to say it is "unnecessary." But it might be true to say that, in some cases, where a firm is active on social media, a branded website requires less support, because it is less important.

Social media is the reason. Yes, you do need something for potential customers to bring up in their browsers when they type in "yourcompanynamedotcom."

But small businesses that are active on other sites with social capabilities might well find that they can get their messages out on third party sites, about as effectively as on their own sites.

According to a Citibank study, that is precisely what many small businesses are doing. Although the vast majority (70 percent) of business owners use their company website for marketing purposes, more than 40 percent of small business owners now use social media channels (including Facebook, Twitter, LinkedIn) to reach consumers.Those tactics are not exclusive, but simply indicate the expanded range of options small businesses now possess.

Only 6% of iPad App Sessions Use Mobile Broadband

Only about six percent of Apple iPad sessions appear to use a mobile broadband connection, according to Localytics. Recent estimates indicate that a larger proportion of new iPads are being sold with the ability to use mobile broadband. But it still appears that most people, most of the time, use Wi-Fi.

Anecdotal reports suggest one of the reasons why Wi-Fi seems to dominate tablet use: users simply run through their data allotments too quickly when watching video on their tablets. Also, few users so far seem to want to spend the extra money on one more mobile broadband connection.

When a user owns multiple mobile devices, all of which benefit from mobile broadband, and when all require a mobile broadband plan, costs become significant fairly quickly. The fixed network broadband model of "one connection, many devices" seems to make more sense than the "each device, a separate connection fee" model now used by mobile service providers.

Google says "Write for People," Not Algorithms

Google search executive Matt Cutts recently made a telling statement about the "problem" of search engine optimization, or more precisely, the abuse of SEO.

Cutts said that sites would be penalized if they “throw too many keywords on the page, exchange way too many links, whatever they’re doing to go beyond what a normal person would expect.“ For some of us, that is a welcome development, as too much attention has been paid, in recent years, to writing to suit Google and other search algorithms, not people.

Write for people, not the search engines. Over the coming years, Google will reward that sort of behavior. It's a welcome change. Now we can get back to writing for other human beings, without the distractions of all the SEO optimization stuff we are "supposed to do."

LTE Phone Shipments To Reach 67 Million Units In 2012

Global Long Term Evolution fourth-generation network device shipments will grow ten-fold in 2012, to reach 67 million units, up from 6.8 million units in 2011.

Strategy Analytics says the growth will be driving by adoption in the United States, Japan and South Korea, especially driven by Verizon Wireless, NTT Docomo and SK Telecom. The growth comes after a several year period where the paucity of LTE phones has limited uptake of service on the 4G networks.

Surprising New Data on Telecom Revenues

There are some interesting conclusions one might draw about the relative importance of several service provider products, in the latest communications industry revenue forecast published by the Telecommunications Industry Association. The most-obvious take away is the dominance and importance of wireless services.

U.S. wireless revenue in 2012 will be about $335 billion, while fixed network voice revenue will be about $132 billion, with an additional $38 billion in broadband access revenue and $6 billion in television revenue, for a total of about $176 billion in fixed network revenue.

In case you hadn’t noticed, in the U.S. market, wireless now is 66 percent of total revenue; all fixed network services just a third.

Globally, the trends are even more lop-sided, as mobile revenue is, by some measures, 4.5 times bigger than fixed-line revenue, already.

The other observation is that, as vital as all the new revenue streams are, legacy voice continues to be the most-important source of revenue for fixed-line service providers. With the growth of broadband access, entertainment video and VoIP, that might come as a surprise.

So what of voice, the traditional “most important” revenue source. As it turns out, legacy voice still is, far and away, the most important revenue source.

VoIP will continue to expand at double-digit rates in 2012 followed by high single-digit gains, averaging 9.4 percent on a compound annual basis for the forecast period to $18.9 billion, in the U.S. market.

That compares with circuit-switched voice revenue that, though declining at a 1.5 percent compound annual rate through 2015, still will represent, in 2015, a $127 billion revenue stream. VoIP will amount to about $19 billion in 2015.

In other words, as a revenue source, legacy voice is seven times bigger than VoIP.

That is not to deny the importance of VoIP in the consumer market. In 2012, VoIP access lines will be about 49 percent as large as circuit-switched lines, for example, suggesting that perhaps 58 million VoIP lines are in service. But the notable point is that VoIP does not represent all that much revenue. In 2015, declining circuit-switched voice will still represent an order of magnitude more revenue than VoIP.

In contrast, fixed network broadband access services will amount to about $46 billion in annual revenue by 2015. Entertainment video will contribute about $14 billion in annual revenue in 2015.

So VoIP will be a bigger revenue stream than entertainment television, but not by much. In 2015, legacy voice still will be the single most-important revenue stream for fixed-line service providers, by far, even though it is declining.