Tuesday, October 25, 2005

Staying Competitive in a Broadband-equipped World

Comcast's Roberts Outlines Strategy for a Broadband TV World

(10/25/05 itvt – Newsletter) In an address before the Executives' Club of Chicago last Wednesday, Comcast CEO, Brian Roberts, provided some insight into how the cable MSO plans to stay competitive in a media world where content providers can offer video directly to broadband-equipped consumers. According to a report on the address published in the Chicago Tribune, Roberts conceded that broadband Internet video-on-demand will eventually render the traditional cable TV business obsolete, and said that Comcast's increasing focus on VOD should be seen as part of its efforts to adapt to this emerging reality: "We really do believe in change," Roberts said. "Other operators looked at on-demand and backed away because it's disruptive. We said 'Let's do it.'" According to the Tribune report, Roberts stated that Comcast needs to adapt to the emerging media landscape of on-demand, Internet-delivered video by becoming more like Google--i.e. by providing sophisticated yet easy-to-use video search services.
The MSO says that over a billion programs have been viewed on its Comcast On Demand VOD service this year to date--well ahead of previous forecasts that a billion programs would be viewed on the service over the course of the entire year. Last year, Comcast subscribers viewed approximately 567 million VOD programs. Comcast's VOD service currently offers around 3,800 programs, 95% of which are offered free of charge (note: Comcast's focus on free on-demand content has irked some content providers) According to the company, which launched its VOD service in its home market of Philadelphia in late 2002, its most-viewed VOD categories include music, movies, sports and children's programming. Its most-watched free VOD program this year has been "1,2 Step," a music video from pop artist Ciara, which has garnered a total of 3.2 million views to date. Another Ciara video, entitled "Oh," has been the second-most popular VOD offering on Comcast this year. The most-watched children's program for 2005 has been "The Chaperone," an episode of the show, "SpongeBob Squarepants," which has garnered 1.3 million views. (Note: Comcast defines a "view" as beginning when a customer selects a program from its VOD menu and ending when the program is deleted from the saved programs file; pauses, rewinds and fast-forwards are counted as part of the original view.)








Time Warner Cable, NBC Universal in "Start Over" Deal
("Start Over" Service is Based on MystroTV Technology)


(10/25/05 itvt – Newsletter) Programmer, NBC Universal Cable, and MSO, Time Warner Cable, have signed a wide-ranging carriage agreement, which, among other things, gives Time Warner Cable the right to offer certain programs from NBC, USA Network, CNBC, MSNBC, Bravo, Sci Fi and other NBC Universal channels on its Start Over service. The latter, which is expected to launch later this year, will allow Time Warner Cable customers to restart TV shows that are already in progress; however, it will not allow them to fast-forward through commercials. The service is based on technology that was developed under the auspices of Time Warner Cable's now-defunct MystroTV project. The deal also gives Time Warner Cable the rights to VOD content from NBC News (including its flagship shows, "Nightly News" and "Meet the Press") and (for the first time) its various cable properties including MSNBC's "Hardball with Chris Matthews", "The Abrams Report," and CNBC's "Mad Money" and "Closing Bell with Maria Bartiromo"). In addition, it calls for NBC Universal to develop "interactive opportunities" for Time Warner Cable and to participate in several of the MSO's new technology trials. NBC Universal Cable president, David Zaslav, said in a prepared statement:

"This multi-faceted agreement with Time Warner Cable demonstrates our commitment to providing our affiliates with the services they need to drive their businesses... Customers will continue to have access to one of the top-rated cable networks on television, USA, while also having the opportunity to utilize new technologies like Start Over. Additionally, we expect Start Over will help deliver more engaged viewers to our advertisers. From HD to VOD and interactive TV, our customers will get to watch the valuable programming we have to offer, from news to entertainment, in new and exciting ways."

Monday, October 24, 2005

P2P & BitTorrent's Threat

Why BitTorrent is a threat to cable and what to do about it. After hearing so much about popular file-swapping program BitTorrent, CableWorld reporter Shirley Brady decided to try it out for herself. What she found was that most cable shows are easily accessible for free online and very easy to download. What, if anything, should cable do about it? Operators and networks are taking various approaches, ranging from aggressive efforts to stamp out P2P sites to starting their own file-sharing networks. CableWorld – Stealing Is Believing

Monday, October 17, 2005

Gone Fishin!

I must say I truly enjoy the media industry. During the twenty years that I've had the good fortune to be involved with it, I have seen enormous growth and change. For many people, they are not comfortable with the "change" aspect. For me, it's an area that I flourish in, it's in my blood and charges me through to the next project, fire or dilemma. A perfect example of this is the industries current state. It is rapidly evolving and morphing right before our eyes. Technologies like DVR's, VOD and video streaming from the internet are finally placing the power in the viewers hands to see what they want, when they want. For me, that just pulls me into another world however as excited as I get about this stuff, I also know that there is a lot more to life. To keep myself grounded I need to reel myself in and take in all the other important things. Truly, it'd this facet of my life that re-charges, re-centers and makes me whole.
This past weekend it was time for a much needed family getaway and we made a run for the North Carolina Mountains and all that they have to offer. Autumn is a beautiful time of year in this part of the country. I had no idea of that fact until moving here from California in late 2001. I have always enjoyed beaches and mountains, hiking fishing and camping however it was an enormous undertaking to get to anywhere nice (and away from people) yet quickly when we were living in Los Angeles, CA. The move from West coast to East has help solve that little life dilemma and we now spend a great deal of weekends (and those long southern summer evenings) out experiencing life and Mother Nature. Here's a little snapshot of our past weekend.

Are you ready to re-charge? Keep in mind that you will never be at your best if you don't take care of number one! For some it may be the gym or run maybe its time with friends and family. As long as it's a big step away form the daily stress and issues it is time well spent.


"If A equals success, then the formula is: A = X + Y + Z, X is work. Y is play. Z is keep your mouth shut."

Albert Einstein

Friday, October 14, 2005

Video on Demand (VOD) News

Video on Demand (VOD) News (TVB October 2005 Report)

US Penetration Estimates:


  • Nielsen estimates 21 million VOD HHs today, expected to reach 30 million next year.

  • Nielsen found that 42% of VOD-accessible homes in the NPM sample watched VOD for at least 60 minutes during at least one week in April-May 2005. The current prime time rating is about 0.15%.

  • MAGNA Global’s On-Demand Quarterly 1st quarter 2005 review estimates 24.5 million VOD-enabled subscribers in 2005 and projects 66 million by 2010.

  • Kagan Research estimates that by end of 2005, 23.9 million U.S. homes will have access to VOD from their local cable operator.

  • Edison Media Research & Arbitron’s Internet & Multimedia 2005 study showed 10% of the U.S. population 12+ watched VOD last month.

Factors Affecting Development of VOD


  • Nielsen’s plans for measuring VOD in 2006 are favorable for establishing pricing for ad-supported VOD content.

  • Disney plans to pursue distribution of “A” grade ABC VOD product with cable operators.

  • MSOs and programmers don’t agree on pricing models, with programmers wanting revenue based on the incremental value of content for cable operators, and MSOs believing that they’ve paid for content once and shouldn’t have to pay again for time-shifted delivery.

  • Growth of direct download (Internet-based video) and P2P-based (peer-to-peer) file-sharing of television programming could limit the appeal of VOD because they compete directly with VOD services.
    Source: MAGNA Global On-Demand Quarterly, June 2005


VOD Research

CBS conducted research on potential VOD usage with its Entertainment Panel (sample of 2457) in December 2004.

  • 44% had access to VOD product.*

  • Among those having VOD access, 21% had ordered something in the past month.*

  • With the choice of ordering VOD for $1 with the ability to fast forward through ads or $.50 without that ability, 62% chose the $1 capability and 38% chose the $.50 alternative.*

  • Among CBS’ TV City New Technology Focus Groups (18 groups in Dec. 2004), 95% found at least one program that they would consider purchasing, and the average number of programs selected was 7.5 programs.*

  • PricewaterhouseCoopers projects 15 million cable subscribers will spend $1.35 billion on pay products this year.**

  • The average share of cable subscribers using VOD at any one time ranges from 6% to 10% – and that is expected to rise to 20% as VOD gains popularity.**

  • Top 10 to 15 titles on most systems account for 50% of all VOD requests.**

  • Movement is toward peer-to-peer (P2P) networks, which allow people to play games with each other or send videos or phone calls.**
    Sources: * CBS Research, ** Broadcasting & Cable 03/28/05