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NETWORK BRANDS ERODED BY STREAMING VIDEO 

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As volatile as the TV industry has been lately, the one segment that has been relatively stable– and consistently profitable– is network broadcasting. This may be about to change.

With the release of new video interfaces such as the most recent upgrade of Comcast X1, and with the launch of multichannel live TV streaming platforms such as Sling TV, DirecTV Now, and Hulu Live TV, the most prominent broadcast networks finally have reason to fear possible extinction. They’re losing their ability to keep their brands in the public eye.

Investment Bankers Weigh In

Kannan Ventakeshwar, an investment analyst for Barclay’s, a multinational British bank, wrote a letter about the TV industry’s future to investors. In it he stated: “Every OTT product is organizing its default user interface by the type of content and not by network. So sports does not show up as ESPN or YES Network. Instead, the default interface is organized by sport and/or teams. This is also becoming true with legacy user interfaces like X1. As a result, it is tough to see the brands of individual networks retaining value in the coming years.”

Until recently, the program guides for cable and satellite TV listed channels under assigned numbers. It was only by looking up particular channels that the viewer could see what shows were airing on those channels at what times.

Viewers Want Convenience

Ventakeshwar said, though, that viewers are losing patience with this system. “…In every evolution of OTT”, he said, “the number of clicks needed to get to a program guide or a network viewing option is actually increasing. Given the importance of consumer inertia in usage patterns, this is not a trivial shift.”

In other words, the harder it is for the viewer to find the shows he wants, the
more likely he is to tune out altogether.

Listing by genre or title saves time, but reduces visibility of network brands. This threatens the network business model. Under the old model, new shows are far more likely to succeed if they immediately precede or follow established hits. A highly popular show might even carry an entire evening’s lineup. A ‘halo’ effect– the network’s reputation for airing shows the viewer likes- can induce him to try out its newer shows.

No More ‘Halo’ Effect

If video interfaces are no longer listing shows by channel, though, the lead-in.
lead-out, and halo effects nearly disappear. Each show is an orphan, standing or falling on its own, and offering little market support to other network programming.

Some streaming platforms, such as Amazon Prime Video, Netflix, and Hulu, further undermine network brands by offering their own original content. And you can find their content only on their own platforms. If you want a Netflix original, you’ll find it only through Netflix.

 

How can the networks adapt to these developments? We don’t know, but they haven’t yet. Perhaps they never will.

If they can’t figure out how to protect their brands, the giant broadcast networks may be headed for extinction. Productions studios could live or die by their latest hits.

Notes:

Comcast owns NBC Universal, the largest and oldest broadcast TV network.
With its updated X1 interface, then, the cable system is partially cannibalizing its own business.

OTT is ‘over-the-top’ video. It is content streamed via the internet as a standalone service. With OTT, no cable or satellite system controls or distributes the content.

(For streaming video, you need a strong internet connection. Is yours adequate? If it isn’t, talk to us. We can help.)

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ROBOTS:  WILL THEY TAKE OUR JOBS?

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Apocalypse by Robots is a recurring theme in technical publications and science fiction. As our tools become more sophisticated and able to learn, the more alarmist writers tell us, they might attack us. A machine programmed to make paper clips might try to turn the entire world into a paper clip factory. Robots programmed to find their own power sources could deny us the power we need for survival. Robots could be deadly.

Some of the less excitable tech writers dismiss such alarms,. They still say, though, that say automation will foster mass unemployment. In fact, we’ll need a guaranteed minimum income to save the hordes of technologically unemployed from rioting in the streets because they can’t support themselves. MIT’s Technology Review, Wired, Gizmodo, The Verge, Singularity Hub, Mashable, Ars Technica- almost every technical rag echoes the same theme.

There are a few dissenting voices, but almost every article addressing the subject warns that automation will destroy far more jobs than it will create. In the past, technical development has only disrupted job markets for the short term, and in the long run has created far more jobs– and far more remunerative jobs-  than it has destroyed.

But this time it’s different, the alarmists say. We can’t use the Industrial Revolution or the dawn of the Information Age as our model. The big difference now is artificial intelligence or machine learning. As our tools learn from ’experience’, instead of just responding to specific inputs, the need for direct human control nearly vanishes. A small technical and financial elite will control almost everything, and will become fantastically wealthy. The rest of us will be mired in poverty, permanently shut out from the labor force.

How Have Robots Affected Job Markets Before?

This certainly is a grim prospect. But is it likely?

We doubt it. Suppose we concede that the distant past has nothing to teach us about out own futures. We’ll look into just the rise of robotics in the last sixty years. In all that time, robots have finally and irrevocably destroyed only one job category, elevator operators. But automation has created more jobs for elevator engineers and repairmen.

We’ve seen the same trend in other industries. Replacement of land lines with mobile phones has radically altered the work of telecom technicians, but has not made them obsolete. Replacing cathode ray tubes with LCD, LED, and OLED TV sets radically shrank the market for TV repairmen, but created new jobs for electronics designers and coders. The waning influence of broadcast TV networks has opened new markets in cable TV, satellite TV, and streaming video,. It has created more demand for content– and for content creators.

Automation has brought us an enormous blessing: assignment of the most dangerous, dirty, exhausting, and boring tasks to machines. This leaves us with far less onerous work, often in air-conditioned comfort. Machine learning will accelerate this trend. The tasks we handle in the future might not be what we call ‘work’ today. They might even seem like play. But suppose you could enter a time machine, and could talk with a farmer or a merchant living two centuries ago. If you describe your current job to him, will he understand it? Will he consider it work? Not likely. He’ll probably think you’re just playing.

What Can You Do?

This doesn’t mean you should be complacent. If you’re unprepared, a rapidly changing job market can hurt you badly. Your best job insurance is continually upgrading your skills.

Above all else, learn how to learn. We can’t always predict what occupations will be in demand. Students who spend years preparing for specific jobs in trendy fields often find, not long after they graduate, that their hard-won skills are obsolete. If you have solid communication, math, and reasoning skills, and if you know a fair amount about literature and history, you have a huge advantage over others. What you don’t know, you can learn quickly.

With a nimble mind and a solid work ethic, you probably don’t need to fear competition by robots.

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VUDU FREE-TO-VIEWER AD-SUPPORTED TV

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As if cable and satellite TV systems weren’t under extreme competitive pressure already, now Wal-Mart is breathing down their necks. The nation’s largest retailer owns VUDU, a streaming video platform that is rolling out an ad-supported free-to-the-viewer movie service.

VUDU currently charges $3.99 for a 1080p movie download. Through its new “Movies On Us” feature, the downloads will be free to the viewer, provided he’s willing to sit through commercials

The first of the ad-supported movie downloads include True Grit (the 2010 remake starring Jeff Bridges), and School of Rock, starring Jack Black. VUDU is promoting both titles heavily.

For any movie title, VUDU will offer the choice of renting it, buying it, or streaming the “Free with Ads” version. Some of the rental and purchase options are available in 4K or Ultra HD.

Jeremy Verba, VUDU’s general manager, said, “This new service provides value for customers who want movies and TV for free, when and how they wish to watch, without sacrificing quality.”

The streaming video market is getting ever more crowded. Last year, Dish Network launched Sling TV, a multichannel streaming VOD service. AT&T has signed carriage contracts for more then 100 channels for its DirecTV Now platform, to be launched by the year’s end. Turner Networks has been working on its own streaming VOD (video on demand) platform, FilmStruck. It’s unveiling has been delayed until November, though, because of a series of technical glitches. Comcast has conducted consumer tests of its TV everywhere VOD service. PlayStation Vue, originally a gaming platform, has has moved into streaming TV.

(For advice about any TV or internet service, talk to us. We can compare all providers and plans available in your neighborhood. Then order any service with just one phone call)

 

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ROKU RELEASES $30.00 STREAMING STICK

Video without Cable or Satellite Subscriptions

If you’re seeking a way to stream video to your computer, it’s getting easier. And it costs less than ever before.

The market for internet video streaming devices is getting ever more crowded. One manufacturer after another is producing dedicated streaming sticks or boxes to meet the growing demand for video services without conventional cable or satellite subscriptions.

Roku’s New Streaming Devices

Roku, which has long been a leader in the market, has pulled ahead in the  industry’s price war with Monday’s introduction of the Express Player, a new streaming stick that will retail for a mere $29.99. This beats the $35.00 price for Google’s Chromecast Stick and the $40.00 price for the Amazon Fire TV Stick.

The Roku Express works on TV sets with HDMI connections, and handles 1080p HD signals. Another model, the Express+, works on older TV sets without HDMI ports.

Other New Roku Models

Beside the Express models, Roku released three upscale streaming devices on Monday: the Premiere, the Premiere+, and the Ultra. The Premiere handles Ultra HD or 4K streaming at up to 60 frames per second. The Premiere+ features the same capabilities, plus High Dynamic Range (HDR) support. The Ultra has all of the capabilities of the Premiere and the Premiere+, and it decodes Dolby Digital and Dolby Digital Plus Surround Sound. For local media playback, the Ultra also features a USB port. The Premiere will retail for $80.00, the Premiere+ for $100, and the Ultra for $130.00.

So far, Roku is the only manufacturer of dedicated video streaming devices to enroll in Comcast’s Xfinity TV Partner program, an effort to incorporate Comcast’s TV Everywhere app into streaming devices via open HTML5 standards.

All Roku devices will work with any internet service fast enough for video. This includes HughesNet.

Roku dominates the streaming device market, with about a 49% share.

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WAL-MART TELLS CUSTOMERS: ‘CUT THE CABLE!”

Cable and satellite TV system operators are in a tough, viciously competitive business. Not only do they have to keep close tabs on each other, they’re losing subscribers to internet video streaming services that threaten the long-term future of the entire industry.

As if these woes weren’t enough, the nation’s largest retailer has moved in on their turf. Early this month, Wal-Mart inaugurated a promotion for video streaming tools with the slogan: “Cut the Cable”.

Encouraging its customers to ditch the conventional pay TV subscription model, Wal-Mart outlined four steps for doing so– including, of course, buying video streaming players and antennae from Wal-Mart.

On its website, the retailer asks, “What better way to save money on your cable bill than getting rid of it altogether?” Though it doesn’t mention prices of its TV sets or streaming tools on the promotional page– the visitor has to find the product page for that– Wal-Mart hints that the move could bring big savings: “As TV Cable bills grow even larger– families spend an average of $160 per month on cable bundles!- an increasing number of people are opting to cut the cord and slice that monthly bill by up to half. Basically, this means dropping your cable or satellite TV subscription and opting for the ease and flexibility of watching all your favorite shows and movies on streaming services like Netflix and Vudu.”

Wal-Mart owns Vudu, though it did not mention this fact in the ad.

While some video streaming platforms offer live access to broadcast networks and their affiliate stations, most cord-cutters will need over-the-air antennae to receive them. Wal-Mart sells antennae, too.

The “Cut the Cable” promotion will continue until July 31.

In most rural areas, and some suburban areas, cable TV is unavailable anyway. For these areas, satellite TV or streaming services such as Sling TV are the only practical options. If this is the case where you live, we can help you find the TV service that best meets your needs.

Whatever your TV or internet needs, talk to us. We can help.

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Magnavox HDD DVR and DVD Recorder w/ Digital Tuner

DVRs For Cord Cutters

Many consumers, exasperated with the high fees and poor customer service common to cable TV subscriptions, have become ‘cord cutters’. They’ve ditched the subscription model. With millions of people using mobile devices for nearly all communications, and with internet video streaming becoming more practical, the cord cutting trend is now irreversible.

Though cord cutting saves money, it comes with drawbacks. Free over-the-air TV is limited to live broadcasts: little other than local news, sports, and award shows. An over-the-air (OTA) DVR can help expand expand your viewing options. Most DVRs have been dedicated boxes available only with cable or satellite TV subscriptions. In the last three years, though, several manufacturers have built OTA DVRs that don’t require subscriptions: TiVo, Tablo, SiliconDust, and Channel Master, among others.

The Channel Master DVR is among the best of them. It sports dual tuners, so you can watch one show while recording another, and its on-screen electronic programming guide is free.  TiVo, probably the best OTA DVR on the market in features and function, requires an annual $150.00 service fee in addition to its $300.00 purchase price.

The most surprising new entries into the OTA DVR market are by Magnavox. Once one of the dominant electronics brands, Magnavox has been a minor player in the industry for the last two decades.

In last week’s Consumer Electronics Show in Las Vegas, though, Magnavox unveiled three new DVR models. Each one has at least two tuners and 1 TB of storage capacity; one has six tuners and 3 TB. All are due for release in the last quarter of 2016. Each has  a free on-screen EPG. Each has a built-in WiFi router, so you can stream live or recorded video to iOS or Android devices. Magnavox says its DVRs will also download content for viewing offline, and one model will burn video into an integrated DVD recorder.

(For streaming video, you need the right internet service. To find the one that works best for you, talk to us. It takes just one phone call.)

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STREAMING SERVICES: VIDEO & MUSIC

One advantage of having a HughesNet broadband connection is access to video and music streaming services such as Netflix, Hulu, Amazon Prime Video, Sling TV, Spotify, and Pandora. Such services stream content to you directly via the web. Most of them don’t require a cable or satellite TV subscription, nor installation of any proprietary equipment. Most are compatible with iOS and Android tablets and smartphones, XBox One and Playstation Vue gaming consoles, Mac and PC computers, and Chromecast, Roku, and Apple TV streaming devices.

Most such services are very inexpensive. Pandora and Spotify, two of the leading web music services, charge nothing for their basic service tiers. The only catch is that your music will be interrupted occasionally by commercials. To skip the ads, you’ll pay a nominal monthly fee: $4.99 for Pandora, $9.99 for Spotify.

Video streaming services are not free, but they don’t cost much. Hulu, which carries a wide variety of TV shows and movies, charges $7.99 per month for video streaming with “limited commercials”. For an additional $4.00 per month. you can get the commercial-free version. Netflix, the most popular streaming video service, carries a huge library of TV shows and movies. The basic Netflix service, at $7.99 per month, will stream to just one device, and is available only in standard definition. For $9.99 per month, you can get an HD-capable version for up to two devices. For $11.99 per month, you can get it in Ultra HD on up to four devices. Most of Amazon Prime Video’s content is free with a $99.00 annual membership, which includes free shipping for most items sold in Amazon’s online store.

Sling TV, launched by Dish Network in early 2015, is an interesting addition to the streaming video market. Sling TV differs from most other streaming services in offering live TV. The basic 23-channel package costs just $20.00 per month. Several movie and sports packages can be added to the core package for just $5.00 per month each. For about $50.00 to $60.00 per month, about half the cost of a standard cable or satellite TV subscription, you could get a combined live TV, sports, and premium movie channel bundle. You would have a very complete TV service, and if you don’t require a huge number of channels, you can save a substantial sum of money. Unlike the standard Dish Network service, Sling TV doesn’t require a satellite dish or a long term contract.

These are just a few of the internet video and music streaming services available. For a wide variety of convenient and low-cost entertainment options, you should look into it.

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TV EVERYWHERE

With your HughesNet service, you’ll have expanded options for TV viewing. With the ability to stream video via the internet, you are not limited to the programming choices or bundles offered by cable and satellite TV systems.

TV Everywhere is an industry term for streaming video services that don’t require conventional cable boxes or satellite dishes. It’s also known as authenticated streaming or authenticated video-on-demand. For most such services, you won’t need to have any equipment installed, and for some, you won’t have to sign any long term contracts. Access to programming is through an authentication code you enter on your device.

The pay TV industry developed TV Everywhere to answer the competitive challenge posed by streaming services such as Hulu, Netflix, and Amazon Prime Video.

TV Everywhere offers flexibility in viewing platforms. Most TVE applications are compatible with iOS and Android smartphones and tablets, Mac and PC computers, Roku, PlayStation, XBox One, Apple TV, and Chromecast devices.

Most TVE services are additions to conventional cable or satellite TV subscriptions. Last February, though, Dish Network launched Sling TV, an independent web-streaming-only platform. Sling TV customers don’t have to sign any long term contracts, can pay on a month-to-month basis, and don’t need Dish Network dishes or receivers. Most programming packages are light on the wallet. The core Sling TV package of 23 channels costs just $20.00 per month.

Since then, some cable system operators are considering offering similar products. Comcast and Verizon have tested separate streaming apps in some markets. Use of these apps does not require the standard cable TV subscription, though Comcast’s streaming service is available only to its broadband subscribers.

As a rule, streaming video services cost much less than cable or satellite TV subscriptions. This is mainly because their channel bundles are usually much smaller. You will need to research TVE providers, though, to be sure you save money- and that you’re getting the channels you want.

(For access to TV Everywhere or other internet services, talk to us.)