Tag cable

They Call It A Medium Because It Isn’t Rare And Is Seldom Well-Done

So I’m still thinking about the possibility of dumping cable television and going all-Internet for our video watching. The poll I posted last week is open until the 15th if you care to add your vote, and the results so far are identical to that 1-in-8 statistic I cited, so it’s clear that the early-adopter penalty is still in effect if I go down that road, but the path seems clearer all the time.

I came across this article in The Economist that considers the difference between the way people say they watch television and the way they actually watch television, and concludes that sixty years of plopping your butt down and watching whatever is on continues to be everyone’s preferred method, regardless of how much you might honestly think you do it differently. The reason, say the various experts in the story, is not our unwillingness to learn how to program the VCR/TiVo/BitTorrent software but rather because we’ve adopted television viewing as the canvas for our interpersonal interaction with family members. The programming isn’t even the point, it’s the opportunity to spend time with the wife and kids. While the implication here is that people won’t change the way the interact with video content, I’m not so sure that’s true. If the delivery mechanism is not the most important element in that system, it shouldn’t take much to make a change to the delivery mechanism, as long as it is not too disruptive of the real desired outcome (the human interaction). Drawing again on the example of our experience with Netflix streaming, on many Saturday mornings, I sit with Charlotte in the living room and spend time with her while she watches cartoons. Last Saturday, we sat together as usual, but instead of watching whatever was on Disney Channel at the moment, Charlotte watched a couple of movies via Netflix, and when she got bored with that we moved on to some things I had recorded on the DVR. We were still watching the television and using the time to be together, but the delivery mechanism had been completely supplanted by the on-demand model.

This BoingBoing post by guest author Craig Engler (who is an executive at the SyFy Channel), argues that prognosticators who say television is being killed by the Internet have several key points wrong, the biggest one being that most (but not all) online video content is still the sole purview of the traditional television model: without the broadcast and cable networks, there is no content, and to this point nobody has developed a business model that can sustain the cost of producing content without the well-established business of ad-supported traditional television. Unlike the Economist article, Engler’s article says that the mechanism is very important, but it’s at a level of remove from the viewer. However, both articles basically make the same point that the overall system is nowhere near as transformed as the people at the top end of the J-curve would like us to think.

But maybe ten years from now, the generational shift alone might swing the balance of that equation. This short article by analyst Henry Blodget links to a much more detailed analysis of the media consumption of children aged 8-18, which paints a picture of a near future with a new generation of young adults so thoroughly media-saturated that they could very well transcend all of the media behaviors that have come before.

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Cutting The Cord

Making the rounds this week is a report from media analyst consulting firm Yankee Group that says 1 in 8 cable TV customers will cancel or downgrade their service in 2010 due to the increasing availability of video content online and/or the seemingly endless increases in cable service prices.

Here’s a little poll for those of you stopping by. Please feel free to add your vote. Poll remains active until midnight of May 15:


The idea that someday people would be able to get all of their television programming completely on demand from some video service in the ether has been talked about for the last fifteen years, but has really only been viable for the last couple of years, since it took most of that time for all of the necessary elements to converge — bandwidth, service providers, ubiquity of network access, quality of video streaming, etc. Like a lot of other disruptive technologies, it needed some sort of Gladwellian “tipping point” to cross over from something only being done by a small niche market of early adopters to being “the next big thing”, and it seems that the tipping point isn’t so much the tech as it is the economy. Who wants to pay a couple of hundred dollars a month for a bajillion channels they never watch, when they can get almost anything they want free or for a lot less? That appeals to just about everyone, not just me and my web-savvy buddies.

I had been fence-sitting about going cable-free for a long time. I’ve followed the development of the various online content services and the associated developments like set-top boxes for several years, but every time I thought I might be ready to pull the trigger, my inner geezer convinced me that sticking with things the way they were was just fine. However, a few weeks ago we started using Netflix’s instant streaming using our Nintendo Wii, and the experience has been so positive that it may be the necessary shove I needed. To be sure, there are still just enough hoops to jump through that I think the 1-in-8 rate isn’t going to go much higher, but that’s still a pretty remarkable number.

I know that most of my friends and family are a lot further behind on the adoption curve than I am, so I am interested to see what you all might have to say. Thanks in advance for taking a moment to answer the poll.

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“It’s Fucking Close To Water”

Canoe Ventures is the name of a joint venture between all six major cable providers in the U.S. to devise and implement a technology for delivering targeted advertisements to customers via their set-top boxes. The idea was first announced last spring and formalized in June, and to-date the cable companies have spent almost $150 million toward their goal, which foresees an eventual revenue stream of $15 billion per year in the form of commercial time sold. The total television advertising revenue figure per year is somewhere around $70 billion, so they’re talking about biting off a serious chunk.

As that first link points out, the venture is an attempt on the part of the cable companies to get their share of the market before Google beats them to it. Google has been testing selling television ads via AdSense in partnership with Dish Network since that same time frame last year, so the cables were already pretty far behind, and haven’t really closed the gap since. Meanwhile, there was some scuttlebutt that Google would call the cable companies’ bluff by building their own set-top box, but those rumors subsided and the current buzz is that Motorola might integrate Google’s “Android” mobile device platform into its own series of set-tops, since they are already committed to using Android on their cell phone products. Either way, their canoe is paddling frantically to catch up to Google’s cigarette boat.

On Friday, Investor’s Business Daily ran this story about Canoe Ventures, which rehashes much of the same background info, but also says that Canoe hopes to rollout their first set-top box “early this year”, and yesterday DSL Reports said that Comcast has plans to conduct a test in Baltimore and is also planning to build a data warehouse with storage “up to 500 terabytes” to collect viewing habit data on over 16 million customer households.

Of course, all of this will COMPLETELY protect your private personal data, with absolutely NO CHANCE of compromise I’m sure…..(rolls eyeballs disdainfully)

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