Thursday, October 21, 2010

Networks Block Google TV Access to Their Programming

ABC, CBS and NBC are blocking TV programming on their websites from being viewable on Google's new Web-TV service, illustrating the problem with all efforts to create alternative ways of viewing TV programming.

Full-length episodes of shows like NBC's 'The Office,' CBS's 'CSI: Crime Scene Investigation,' and ABC's 'Modern Family' can't be viewed on Google TV, a service that allows people to access the Internet and search for Web videos on their television screens, as well as to search live TV listings, the Wall Street Journal reports.

As always has been the case, content owners will block any effort to disrupt their existing revenue models by denying legal access to the programming people want to watch, until some tipping point where content owners believe the results are at least revenue neutral, with further upside going forward.

42% of All Mobile Users Say They Have Downloaded Apps

About 42 percent of all mobile consumers have downloaded apps onto their mobile phone, the Mobile Marketing Association reports. About 25 percent of apps are used daily, and eight percent do not get used in a 12-month period.

Some 60 percent said their “most used” app provides entertainment, while 47 percent called their most-used app something “useful when on the go.”

Twice as many expect to increase (22 percent) as decrease (10 percent) their app downloads next year, while 40 percent expect no change.

Next year, respondents who plan to add apps say they will seek apps focusing on entertainment; restaurants; banking; and travel.

StatFlash - Ethernet Exchange Market to Hit $674M by 2014

The market opportunity for Ethernet Exchange services is sized at $674 million worldwide in 2014, according to Vertical Systems Group. That includes carrier and enterprise payments for seller and buyer ports, virtual connections and service fees.

Why Twitter Is a Big Win for Small Businesses

Not every small business will find these results, but Chanel Huston, owner of Boutique de Bandeaux, an Etsy shop selling handmade couture-inspired hair accessories for thick, curly and kinky natural hair, says her business has tripled since she started using Twitter to find customers and promote her business.

"I noticed that between the four-month period before I started using Twitter and the four-month period after I started using it, my sales tripled," Huston says.

"I was on a message board for natural hair first, called Black Hair Media, and it turned out that a lot of the girls were on Twitter," Huston says. "Once I got on Twitter, I found out that there was a big natural hair community that would meet and give tips and secrets to each other.”

"Twitter helps me find the people who are actually going to be interested in my products, who have the disposable income to spend on them and have the hair type that’s going to be appropriate for my products," she says.

“Finding people on Twitter is actually easy, if tedious at the start, she says. "I started by making announcements on the message board that I frequented to let everybody know that they could now follow me on Twitter. After that, she went looking for Twitter users that have a target audience similar to hers and become a "follower."

Now she says she has a little over 3,000 followers, and for the most part, she responds personally to all incoming tweets.

There’s a lot of temptation to follow everyone, but avoid the temptation, she says. If you sell children’s clothes, for example, add people who are following parenting magazines or are in parenting groups.

Mobile Websites Grow 2000% Between 2008 and 2010

Mobile-optimized websites have grown 2000 percent since 2008, a new study shows.

In 2008 Netcraft identified 150,000 mobile-ready websites, while the 2010 study showed approximately 3.01 million sites, representing two-year growth of more than 2,000 percent.

Web analysts Netcraft found that, between 1996 and 1998, the size of the desktop Web grew from 150,000 sites to 2.0 million sites, a growth rate of only 1,333 percent compared to the mobile Web's 2,000 percent growth in the equivalent timeframe.

Future of TV: One Investor's View

At some point, "over the top" video distribution is going to be a bigger financial force in the television business, but it won't happen as fast as many believe, simply because the amounts of business revenue at stake are so enormous. As hard as attackers will try, access to quality content still will be a key issue, as content owners will not be in a hurry to jeopardize their current revenue streams.

"Over the top" options will continue to proliferate, and device manufacturers will attempt to create ecosystems around their products to entice content owners to buy in. But it will take time to create the scale content owners will want to see before making adjustments in content relationships.

Also, existing distributors, such as cable companies, know exactly what is at stake and will work furiously to enable online video in ways that complement, rather than compete with, their current offerings.

Virtually all the contestants in the ecosystem will be looking at ways to "move up the stack" in terms of providing more value. Many of those attempts will fail.

Software and applications are not core competencies for many of the ecosystem providers, and that ultimately will limit the success of "up the stack" efforts.

Almost by definition, the real combat will take place over second and tertiary screens, rather than the large TV screen. Tablet PCs and smartphones will provide key examples, even though game consoles and other devices using the TV display also will fight for attention.

Perhaps the key issue is the future of content bundling. Nearly all the technology developments will create alternatives to the multichannel TV subscription. Perhaps an analogy can be glimpsed in the music business, where the "bundled" album or CD lost favor compared to purchases of discrete songs.

Also, the trend in video entertainment over the past several decades has been a shift away from linear formats and towards on-demand consumption. Digital methods are only the latest examples of a trend that began with the videocassette recorder.

Television originally was designed for a mass audience in a single country. But global content and its ability to develop a “niche” global audience now is a new trend. Think of about the rise of Japanese Anime, Spanish Novelas, Korean Drama or the rise of Bollywood entertainment from India. It’s not a mass, mainstream audience but I would argue that it’s “global torso” content that will be meaningful at scale. Websites like ViiKii, which have been launched to create realtime translations of shows by fan-subbers, have huge followings already. And I’m sure that this is what popularized the SlingBox in the first place. British, India & Pakistani ex-pats on a global scale want to watch cricket.

NetFlix might be winning the battle for distribution of movie content online. Linear television remains much more fluid. One app to watch is YouTube, which might graduate from user-generated video to a distribution mechanism for "linear" professionally-created video as well. Potential audience size always matters, and YouTube is aggregating an enormous potential audience.

That same argument goes for gaming consoles, which now represent an installed base of U.S. devices numbering about 60 million terminals. The issue is not simply the game console's ability to deliver online video, but the role gaming might ultimately play in building audiences for gaming-plus-TV experiences.

Content discovery will be important as well. In a universe of content, it is hard to find "the good stuff." In part, that is why some believe "social TV" is a growth area. People talk about video and movies they like. That will help with the "discovery" problem.

Another unknown is the way narratives are crafted. Hollywood is the master of the long-form story.Whether that will be the only, or even dominant narrative in the future is open to question.

What happens when content production & distribution is easy to professionally produce and distribute at mass low-cost scale? Will we still have predictable story lines? Or can we develop more fragmented content to meet the needs of fragmented audiences and interest groups?

What happens in a world where content producers have a direct relationship with the audience and can involve the audience directly in story creation? Or maybe even as wacky as involving the audience in the story itself?

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Carrier Ethernet Demand Strong in Several Verticals

Carrier Ethernet services are best suited today for organizations with less-dynamic networking environments and very-high port bandwidth (dynamic bandwidth allocation), a very dumb edge and very low latency—essentially emulating LAN operating characteristics.

That tends to mean carrier Ethernet service ideal for connecting advanced, distributed data centers and converged cloud-based applications globally.

Companies that will drive Ethernet WAN services growth post-2010 will be heavily dependent on transporting huge amounts of data and converged traffic including real-time/live high-definition video, and/or will be computing-intensive businesses using a less dynamic or “fixed” network architecture. These companies typically fall into specific industy verticals.

Higher education, including universities, university research centers, online education/distance learning and vocational training, is among the lead candidates.

Media and entertainment companies have been lead adopters as well.

Health care also is an area where increasing use of telepresence and telemedicine has the potential to drive exponential bandwidth growth and carrier Ethernet purchases.
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Finally, the U.S. federal government tends to have needs for telepresence, collaboration, high-performance computing and data center access as well. These include the need to link numerous national (or international) sites, small communities, and eventually even geographically remote sites (and mobile and remote workers) while maintaining secure network connections.

Those verticals will not be the only logical candidates for further adoption of carrier Ethernet services, but will disproportionately represent top prospects.

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AI Will Improve Productivity, But That is Not the Biggest Possible Change

Many would note that the internet impact on content media has been profound, boosting social and online media at the expense of linear form...