VideoNuze Posts

Despite the massive proliferation of video-enabled devices, a new survey released this morning by Verizon finds that 89% of "borderless" consumers and 90% of "non-borderless" consumers still prefer watching TV programs on their TVs. The survey is part of a new research initiative called the Verizon FiOS Innovation Index: Borderless Lifestyle Survey and is based on approximately 2,300 adult respondents.

According to Verizon, "borderless consumers" are defined as owning a computer, a smartphone or tablet, have an Internet-enabled device with them at all times, are interested in technology and connectivity upgrades and the benefits of a connected home. Verizon believes that fully 40% of Americans are now borderless consumers, with those 18-34 comprising the largest number.

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Netflix reported its Q3 '12 results yesterday, including dismal streaming growth of just 1.2 million subscribers in the critical U.S. market. But the big takeaway for me continues to be the breathtaking contraction of its highly profitable DVD-by-mail segment. By my calculations, beginning in Q3 '11 (when the Qwikster debacle was launched) through Netflix's forecast for Q4 '12, the company will have lost approximately 8 million DVD subscribers, or about half the estimated 15.9 million it had back on July 1, 2011.

Can you think of any other company that has pursued a voluntary strategy shift away from a reasonably healthy core business, which then resulted in half of its customers dropping in the subsequent 18 months? I cannot. In fact, I wonder if there's ever been one. That's how remarkably bad the Qwikster decision is turning out to be.

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"Killer app" is surely one of the most cliche terms in technology and one I try hard to avoid using. But today I'm making an exception because, in my opinion, the new TiVo Stream device actually has a bona fide killer app: the ability to wirelessly download recorded programs from a TiVo Premiere DVR to an iOS device for offline, high-quality playback. I've been using Stream mainly for this purpose for the past month and have absolutely fallen in love with the device.

The ability to download recorded programs is huge for several reasons. First and foremost, often when out of the home, it just isn't possible to stream video. A high-quality WiFi network may not be available (for instance, when flying). And even if it is, it may be over-shared, lacking necessary capacity for streaming. Wireless carrier 3G aircards similarly lack capacity, and with 4G aircards, data usage plan caps quickly kick in, making streaming an expensive proposition.

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I'm pleased to share that VideoNuze is collaborating with Broadcasting & Cable / Multichannel News magazines to produce the "Ultimate Guide to TV Everywhere," with a December 3rd publication date.

The 16-page guide will include up-to-date research data and analysis, interviews with industry leaders, case studies and more. It will tackle the questions surrounding TV Everywhere head-on, providing essential insights for busy industry executives. Topics covered will include strategic and business drivers, core technologies, changing viewer behaviors/expectations, business/rights issues and enabling devices.

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Colin Dixon, senior partner at The Diffusion Group and I are back for the 152nd edition of the VideoNuze-TDG podcast. This week Colin and I first share our reactions to the launch of Boxee TV earlier this week. Colin is struck by Boxee TV's unlimited video recording feature, the first that either of us have seen. Colin also points out potential challenges with upstream bandwidth that could be a challenge for Boxee TV recording programs at HD quality. Overall though, Colin likes Boxee TV's direction and believes it's a better strategy for the company than the original Boxee Box.

As I wrote earlier this week, I see Boxee TV in the context of innovation happening with broadcast TV and DVR. Along with Simple.TV and Aereo, consumers are gaining more control of their broadcast TV experience. In addition, they're all overlapping to an extent with Hulu and Hulu Plus which already offer unprecedented access to broadcast TV programs. It's still too early to tell which of these approaches will succeed, but Colin and I share our predictions.

Click here to listen to the podcast (21 minutes, 39 seconds)

Click here for previous podcasts

The VideoNuze-TDG podcast is available in iTunes...subscribe today!

Here's another great reason to register now for the Dec. 5th VideoSchmooze Online Video Leadership Forum in NYC: all early bird registrants will be entered in a drawing to win an $850 Samsung 40 inch LED Smart TV. This highly-rated 1080p HDTV's screen is just 1.8 inches thick and is WiFi enabled with all your favorite over-the-top apps integrated. The Smart TV is being graciously provided by NeuLion.  The only qualifier is you must actually be in attendance when we do the drawing on Dec. 5th.

The early bird discounted ticket price is $95, which includes the full morning program through 12 noon, continental breakfast and networking. 5-pack and 10-pack group rates are also available.

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Odd as it may seem on the surface, the intersection of broadcast TV and the DVR has become a hotbed of innovation. Yesterday brought the latest player in this space, Boxee TV, which followed news earlier this week that Simple.TV has begun shipping, which itself followed the launch earlier this year of Aereo.

While each has its own unique approach, they all fundamentally provide viewers more flexibility to record and play back broadcast TV programs by leveraging over-the-top, broadband delivery, while seeking to undercut the price of a monthly subscription to pay-TV. They are all segmenting the consumer market, pursuing a cohort of "cord-cutters" and "cord-nevers" open to alternatives to pricey multichannel TV bundles.

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Advertising on connected TVs is continuing to improve, as Rovi late last week announced a new polling feature in its Rovi Advertising Network. Jeff Siegel, SVP, Global Media Sales, told me that this is one of the top capabilities advertisers have been asking for. Advertisers will typically seek a viewer's opinion on something and as a reward will offer a coupon or other incentive.

Rovi is a key player in the budding connected TV advertising market, as it both powers and sells ads for connected TV manufacturers Sony, Samsung, Toshiba, Panasonic. NPD recently estimated that 27% of TVs shipped in Q1 '12 had Internet connectivity. However that number can be a little deceiving, since not all these buyers will actually connect their TVs. Jeff explained that Rovi breaks the TV market into four buckets: total number of TV sets shipped, the percent of these that are connectable, the percent of these that are actually connected, and finally what they are used for.

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