Posts tagged ‘microsoft’

UltraViolet: Who’s Really Getting Burned?

UltraViolet: Who's Really Getting Burned?

In light of UltraViolet’s recent flurry of announcements about it being “ready,” let’s take a moment to revisit the truthiness of it coming to life…

As entertainment continues to gasp for air and content owners watch their revenues plummet, the industry continues to achieve nothing. Think of the Coppertone Girl if she didn’t do anything about the sun’s harmful ultraviolet rays. She’d end up burnt.

Call me a Fool, but I’d like to expose why UltraViolet is hazardous to the health of both the entertainment industry and the consumer. If it continues on its current course then, in the future, I won’t get to watch my movies the way I want to.

The industry appears to be trying to move to a “watch wherever” model. That’s a good thing because that would allow me to get my content on any of my devices like my TV, PS3, i-Pad, mobile phone, etc.

It’s a great theory, but the way things are going this initiative seems destined to fail.

Are the studios waffling?

The studio-centric UltraViolet was started three years ago when the market was different and they felt that a digital standard was required to continue selling content in a world where disc sales were crumbling.

Time has marched on and I now understand the studios are waffling, beginning to disown the very usage model that allows you to “include up to six people you define as your household” and “access all of your shows and movies from any of up to 12 registered UltraViolet devices.”  (Don’t shoot the messenger.  This is straight from uvvu.com).  They are getting cold feet with this fundamental premise because they feel the model is overly generous and too big of a departure from the current model.  They also are concerned that the members of an account would misuse their rights by sharing content too liberally among members and devices in their account.  You tell me what that really means…

To this day, the business costs of how UltraViolet works is ambiguous.  Commitment to the business model is a long way off.  Who pays for marketing? The studios spent millions promoting Blu-ray; why aren’t they ponying up to market UltraViolet?

Warner Brother’s seems to be confirming this waffling.  Its President announced a “Digital Everywhere App” that allows consumers to manage their video content the way they can with music and photos.  Warner expects the App to connect consumers with and enable other retailers like Amazon, Netflix and Apple.

Wait a minute: we know for a fact that Apple will continue on its own course and never join UltraViolet, and Amazon will refuse to sign up because it is busy with its own cloud services plan. Netflix doesn’t even sell or rent movies so to them a digital locker is irrelevant.  Warner’s ruse of playing nice with retailers that will never launch UltraViolet services is just more waffle.

Could I please have some extra syrup, as this is all a little hard to swallow?

The Sun rises in the West?

Device makers will have to create new devices in order to support UltraViolet.  Since this engineering takes people, time and money, they only add functionality if they think it will help to sell more devices.    It’s too risky to start production with changing and ill-defined specifications. It’s not surprising they are standing on the sidelines and waiting before they invest R&D resources until it is a safe bet.

They are tiring of studio waffling.  With each waffle, device makers push back their ability to deliver UltraViolet-ready devices by a minimum of nine months due to production lead times. For devices to hit stores for the 2011 holiday season, they would have needed to start production in February.  That didn’t happen.

Device makers are unclear on the benefits.  They know it will cost more to build the devices, and they know that no one appears to be stepping up to pay for marketing. The upside was selling more devices supporting an open standard, but now they are not so sure.

They were excited at the prospect of a beautiful sunrise with UltraViolet, but it turns out that they are tired of waiting in the dark only to find the forecast is mostly cloudy (with a chance of meatballs).

Are retailers’ heads in the cloud?

Contrary to what others think, I believe that people learn about new stuff by going to stores.  At the moment, these retailers SELL the vast majority of disc-based content.  As I look at UltraViolet, there doesn’t seem to be many disc retailers involved.  Think of the number of visits that Amazon, Wal-Mart and Target have coming through to learn about and buy products.  Where are the other retailers?  Where will consumers go to learn about UltraViolet without retailers?

The concept of interoperability requires multiple retailers in each territory to launch simultaneously.  Recent estimates would see a top DVD retailer paying $10M in fees alone in the first year to operate an UltraViolet service.  The costs seem high, but retailers will get involved if they understand the benefits.  So far, these benefits are obscured and preventing retailers from committing.

I might be wrong, but maybe consumers don’t need stores or online sites to learn about new products.  Some device makers like Samsung with their TV apps, Microsoft with Xbox and Nokia with their handsets, are positioning to go direct to consumers.  Even Warner Brothers is demonstrating that maybe selling their wares directly to consumers is the future.  I have a foolish idea: maybe they can pick up the nearly 1,000 Blockbuster stores that Dish is dumping in order to reach consumers…

The disincentives are clear.  UltraViolet is expecting retailers to expose themselves and use their resources for the marketing and promotion of the UltraViolet brand.  UltraViolet will provide marketing materials (they will throw some bones like messaging and logos) that retailers will have to license. Other than that, they are on their own to market and promote the UltraViolet experience.  Retailers should not, will not, and do not reach into their own pockets to market other company’s brands.

So who’s getting burned?

UltraViolet burns the consumer.

With studios, device makers and retailers in a game of chicken, UltraViolet will rush to get something to market and water down any meaningful consumer offering to the point of being insignificant.

Think about it – should Sony be the last studio standing in UltraViolet, what good does a service do for a consumer that only has their content? It’s likely that, due to the number of companies involved, the offer will end up costing more than stuff that’s available today.  Would you pay more?  With manufacturer lead times, what if there are no devices that support UltraViolet services? If you can’t buy from retailers that you are used to, then what did 70+ companies over the past three years achieve?

My dream of watching content on all my devices seems further off than ever. With UltraViolet burning consumers, entertainment junkies like me will stop buying and keep in the shade.  I’m afraid that the sunset for entertainment is coming all too soon.

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UltraViolet: Who’s Really Getting Burned?

UltraViolet: Who's Really Getting Burned?

As entertainment continues to gasp for air and content owners watch their revenues plummet, the industry continues to achieve nothing. Think of the Coppertone Girl if she didn’t do anything about the sun’s harmful ultraviolet rays. She’d end up burnt.

Call me a Fool, but I’d like to expose why UltraViolet is hazardous to the health of both the entertainment industry and the consumer. If it continues on its current course then, in the future, I won’t get to watch my movies the way I want to.

The industry appears to be trying to move to a “watch wherever” model. That’s a good thing because that would allow me to get my content on any of my devices like my TV, PS3, i-Pad, mobile phone, etc.

It’s a great theory, but the way things are going this initiative seems destined to fail.

Are the studios waffling?

The studio-centric UltraViolet was started three years ago when the market was different and they felt that a digital standard was required to continue selling content in a world where disc sales were crumbling.

Time has marched on and I now understand the studios are waffling, beginning to disown the very usage model that allows you to “include up to six people you define as your household” and “access all of your shows and movies from any of up to 12 registered UltraViolet devices.”  (Don’t shoot the messenger.  This is straight from uvvu.com).  They are getting cold feet with this fundamental premise because they feel the model is overly generous and too big of a departure from the current model.  They also are concerned that the members of an account would misuse their rights by sharing content too liberally among members and devices in their account.  You tell me what that really means…

To this day, the business costs of how UltraViolet works is ambiguous.  Commitment to the business model is a long way off.  Who pays for marketing? The studios spent millions promoting Blu-ray; why aren’t they ponying up to market UltraViolet?

Warner Brother’s seems to be confirming this waffling.  Its President announced a “Digital Everywhere App” that allows consumers to manage their video content the way they can with music and photos.  Warner expects the App to connect consumers with and enable other retailers like Amazon, Netflix and Apple.

Wait a minute: we know for a fact that Apple will continue on its own course and never join UltraViolet, and Amazon will refuse to sign up because it is busy with its own cloud services plan. Netflix doesn’t even sell or rent movies so to them a digital locker is irrelevant.  Warner’s ruse of playing nice with retailers that will never launch UltraViolet services is just more waffle.

Could I please have some extra syrup, as this is all a little hard to swallow?

The Sun rises in the West?

Device makers will have to create new devices in order to support UltraViolet.  Since this engineering takes people, time and money, they only add functionality if they think it will help to sell more devices.    It’s too risky to start production with changing and ill-defined specifications. It’s not surprising they are standing on the sidelines and waiting before they invest R&D resources until it is a safe bet.

They are tiring of studio waffling.  With each waffle, device makers push back their ability to deliver UltraViolet-ready devices by a minimum of nine months due to production lead times. For devices to hit stores for the 2011 holiday season, they would have needed to start production in February.  That didn’t happen.

Device makers are unclear on the benefits.  They know it will cost more to build the devices, and they know that no one appears to be stepping up to pay for marketing. The upside was selling more devices supporting an open standard, but now they are not so sure.

They were excited at the prospect of a beautiful sunrise with UltraViolet, but it turns out that they are tired of waiting in the dark only to find the forecast is mostly cloudy (with a chance of meatballs).

Are retailers’ heads in the cloud?

Contrary to what others think, I believe that people learn about new stuff by going to stores.  At the moment, these retailers SELL the vast majority of disc-based content.  As I look at UltraViolet, there doesn’t seem to be many disc retailers involved.  Think of the number of visits that Amazon, Wal-Mart and Target have coming through to learn about and buy products.  Where are the other retailers?  Where will consumers go to learn about UltraViolet without retailers?

The concept of interoperability requires multiple retailers in each territory to launch simultaneously.  Recent estimates would see a top DVD retailer paying $10M in fees alone in the first year to operate an UltraViolet service.  The costs seem high, but retailers will get involved if they understand the benefits.  So far, these benefits are obscured and preventing retailers from committing.

I might be wrong, but maybe consumers don’t need stores or online sites to learn about new products.  Some device makers like Samsung with their TV apps, Microsoft with Xbox and Nokia with their handsets, are positioning to go direct to consumers.  Even Warner Brothers is demonstrating that maybe selling their wares directly to consumers is the future.  I have a foolish idea: maybe they can pick up the nearly 1,000 Blockbuster stores that Dish is dumping in order to reach consumers…

The disincentives are clear.  UltraViolet is expecting retailers to expose themselves and use their resources for the marketing and promotion of the UltraViolet brand.  UltraViolet will provide marketing materials (they will throw some bones like messaging and logos) that retailers will have to license. Other than that, they are on their own to market and promote the UltraViolet experience.  Retailers should not, will not, and do not reach into their own pockets to market other company’s brands.

So who’s getting burned?

UltraViolet burns the consumer.

With studios, device makers and retailers in a game of chicken, UltraViolet will rush to get something to market and water down any meaningful consumer offering to the point of being insignificant.

Think about it – should Sony be the last studio standing in UltraViolet, what good does a service do for a consumer that only has their content? It’s likely that, due to the number of companies involved, the offer will end up costing more than stuff that’s available today.  Would you pay more?  With manufacturer lead times, what if there are no devices that support UltraViolet services? If you can’t buy from retailers that you are used to, then what did 70+ companies over the past three years achieve?

My dream of watching content on all my devices seems further off than ever. With UltraViolet burning consumers, entertainment junkies like me will stop buying and keep in the shade.  I’m afraid that the sunset for entertainment is coming all too soon.

UltraViolet: Who’s Really Getting Burned?

UltraViolet: Who's Really Getting Burned?

As entertainment continues to gasp for air and content owners watch their revenues plummet, the industry continues to achieve nothing. Think of the Coppertone Girl if she didn’t do anything about the sun’s harmful ultraviolet rays. She’d end up burnt.

Call me a Fool, but I’d like to expose why UltraViolet is hazardous to the health of both the entertainment industry and the consumer. If it continues on its current course then, in the future, I won’t get to watch my movies the way I want to.

The industry appears to be trying to move to a “watch wherever” model. That’s a good thing because that would allow me to get my content on any of my devices like my TV, PS3, i-Pad, mobile phone, etc.

It’s a great theory, but the way things are going this initiative seems destined to fail.

Are the studios waffling?

The studio-centric UltraViolet was started three years ago when the market was different and they felt that a digital standard was required to continue selling content in a world where disc sales were crumbling.

Time has marched on and I now understand the studios are waffling, beginning to disown the very usage model that allows you to “include up to six people you define as your household” and “access all of your shows and movies from any of up to 12 registered UltraViolet devices.”  (Don’t shoot the messenger.  This is straight from uvvu.com).  They are getting cold feet with this fundamental premise because they feel the model is overly generous and too big of a departure from the current model.  They also are concerned that the members of an account would misuse their rights by sharing content too liberally among members and devices in their account.  You tell me what that really means…

To this day, the business costs of how UltraViolet works is ambiguous.  Commitment to the business model is a long way off.  Who pays for marketing? The studios spent millions promoting Blu-ray; why aren’t they ponying up to market UltraViolet?

Warner Brother’s seems to be confirming this waffling.  Its President announced a “Digital Everywhere App” that allows consumers to manage their video content the way they can with music and photos.  Warner expects the App to connect consumers with and enable other retailers like Amazon, Netflix and Apple.

Wait a minute: we know for a fact that Apple will continue on its own course and never join UltraViolet, and Amazon will refuse to sign up because it is busy with its own cloud services plan. Netflix doesn’t even sell or rent movies so to them a digital locker is irrelevant.  Warner’s ruse of playing nice with retailers that will never launch UltraViolet services is just more waffle.

Could I please have some extra syrup, as this is all a little hard to swallow?

The Sun rises in the West?

Device makers will have to create new devices in order to support UltraViolet.  Since this engineering takes people, time and money, they only add functionality if they think it will help to sell more devices.    It’s too risky to start production with changing and ill-defined specifications. It’s not surprising they are standing on the sidelines and waiting before they invest R&D resources until it is a safe bet.

They are tiring of studio waffling.  With each waffle, device makers push back their ability to deliver UltraViolet-ready devices by a minimum of nine months due to production lead times. For devices to hit stores for the 2011 holiday season, they would have needed to start production in February.  That didn’t happen.

Device makers are unclear on the benefits.  They know it will cost more to build the devices, and they know that no one appears to be stepping up to pay for marketing. The upside was selling more devices supporting an open standard, but now they are not so sure.

They were excited at the prospect of a beautiful sunrise with UltraViolet, but it turns out that they are tired of waiting in the dark only to find the forecast is mostly cloudy (with a chance of meatballs).

Are retailers’ heads in the cloud?

Contrary to what others think, I believe that people learn about new stuff by going to stores.  At the moment, these retailers SELL the vast majority of disc-based content.  As I look at UltraViolet, there doesn’t seem to be many disc retailers involved.  Think of the number of visits that Amazon, Wal-Mart and Target have coming through to learn about and buy products.  Where are the other retailers?  Where will consumers go to learn about UltraViolet without retailers?

The concept of interoperability requires multiple retailers in each territory to launch simultaneously.  Recent estimates would see a top DVD retailer paying $10M in fees alone in the first year to operate an UltraViolet service.  The costs seem high, but retailers will get involved if they understand the benefits.  So far, these benefits are obscured and preventing retailers from committing.

I might be wrong, but maybe consumers don’t need stores or online sites to learn about new products.  Some device makers like Samsung with their TV apps, Microsoft with Xbox and Nokia with their handsets, are positioning to go direct to consumers.  Even Warner Brothers is demonstrating that maybe selling their wares directly to consumers is the future.  I have a foolish idea: maybe they can pick up the nearly 1,000 Blockbuster stores that Dish is dumping in order to reach consumers…

The disincentives are clear.  UltraViolet is expecting retailers to expose themselves and use their resources for the marketing and promotion of the UltraViolet brand.  UltraViolet will provide marketing materials (they will throw some bones like messaging and logos) that retailers will have to license. Other than that, they are on their own to market and promote the UltraViolet experience.  Retailers should not, will not, and do not reach into their own pockets to market other company’s brands.

So who’s getting burned?

UltraViolet burns the consumer.

With studios, device makers and retailers in a game of chicken, UltraViolet will rush to get something to market and water down any meaningful consumer offering to the point of being insignificant.

Think about it – should Sony be the last studio standing in UltraViolet, what good does a service do for a consumer that only has their content? It’s likely that, due to the number of companies involved, the offer will end up costing more than stuff that’s available today.  Would you pay more?  With manufacturer lead times, what if there are no devices that support UltraViolet services? If you can’t buy from retailers that you are used to, then what did 70+ companies over the past three years achieve?

My dream of watching content on all my devices seems further off than ever. With UltraViolet burning consumers, entertainment junkies like me will stop buying and keep in the shade.  I’m afraid that the sunset for entertainment is coming all too soon.

I surrender to Apple

You have to hand it to Apple for its awesome-ness .  I saw an article this past week that talked about Apple’s 64.5% share in EST/iVOD consumer spending in 2010.  Sure, they are down from 74.4% in 2009, but owning more than two thirds of any market is an impressive feat.

However, we have seen competition intensify with Zune, PlayStation, Amazon and Wal-Mart.  And competition will continue to intensify with industry plays like Ultraviolet , confusing people even further.  So what’s on my mind today is this:  is there room for more competitors and new stuff in video? Or will people settle for (or to some, surrender to) the simplicity and workability of Apple?

Is there room?

My unsolicited opinion is yes, of course there is always room for new stuff.  But any new companies have a sheer cliff to scale.  Not only does the service or product have to be absolutely perfect and better than Apple, but people have to know about it.  And that takes loads of innovation, marketing, product refreshing  and starting all over again.  In this day and age, once a product/service is released, it begins becoming obsolete on day 2.

Who’s it gonna be?

So who’s going to be the courageous new competitor?  One camp out there thinks that – of all things – Wal-Mart and Vudu have a shot.  Well, I think that’s ridiculous.  Wal-Mart just doesn’t innovate or have the right customer base.  They sell cheap crap made in China to make life more affordable – hardly a fit for digital entertainment.

On my optimistic days, I think Ultraviolet has a shot.  They’ve got the right players and the right ideas.  With Microsoft and Sony as members, they represent 17% of the market.  I’m definitely anxious to see them get on with it and launch something, because it could be very cool.

Day 2

But then day 2 arrives.  That’s when the pessimist Fool starts pestering me:  with the consortium-style-United-Nations-procedures way of making decisions, I find it very hard to see UV executing on rapid product enhancements and innovations that are so critical.  There’s just too many companies and people involved.  As a small example, Microsoft’s Zune is out for itself, and Sony is world famous for its ability to not really do anything more once it does something cool (remember the Walkman).

So, in answer to my self-imposed question, given where the market is today, I think people will happily surrender to Apple.   Even though Motorolla’s vision of 1984 may come true, at least my stuff will work, and my Apple shares will be worth something.

CES, truthiness and Spinal Tap

Spinal Tap's Stonehenge as a metaphor for the spectacle of CES

Now that the CES has trickled out of the press, the displays are down and the support crews are back with their families, let’s revisit one last time.  I have to tell you I was personally a little let down this year.  Since I watched it from the comfort of my home, did you guys see anything interesting?  Or just a bit more of the same from last year?  3D, Internet TV, some new tablet devices, Windows 7 phone, some other mobile stuff, snappy USB devices and even more ridiculous over-the-top fantasy cars.  But since you have all likely read the other thousand CES roundups (here’s a good one), I won’t bore you with more of the same….But I do need to talk about one fantastic article that captured the absurdity of CES and related directly to a thought I had about my favorite topic.

In a great piece The Most Worthless Week in Tech, Farhad Manjoo talks about how silly CES has become in terms of the bluster and hot air that the industry’s titans blow just to take advantage of the press coverage.  In a nice rant on Microsoft, Farhad says

I don’t mean to single out Microsoft, because it is merely the worst offender in the overcrowded, overstuffed, chaotic, and profoundly pointless vaporware parade known as CES… Every major tech company follows the same tired CES script: They put on by-the-book press conferences that begin with lots of demos of stuff we already know about—count on Intel, for instance, to always show you how fast its new chips are (hint: faster than last year’s chips). Next, with all the fanfare of the Second Coming, tech giants offer a few incremental improvements to old products. (Look, Microsoft improved the Surface computer!) Finally, they show off things like the HP Slate—gadgets in very early stages of development that have been rushed to the show and barely work as prototypes, with little chance of actually getting to market anytime soon.

I love the truthiness of that!  To pile on to vaporware and relating to my topic, I find it so funny that Ultraviolet – after 27 months of work – made a slew of announcements that they were “ready” and that the world should look out for a mid-year launch.  Well, not to be a Fool or anything, but if they were so sure of themselves, why were industry execs whisked off to a private hotel room to see the demo?  Wouldn’t you think that they would want to make a splash with a badass booth with dry ice and bikini clad girls?  But I digress.

I’m glad I stayed home.  Next year, I think I’ll really mix things up and figure out how to calculate the carbon footprint of CES.  Imagine the environmental impact of all us nerds on expense accounts in Vegas!  And then maybe I’ll get Greenpeace to do something disorderly.  Now that would be a cool CES.

The meantime, here’s a laugh for you that is symbolic of CES.  Enjoy.

Savvy

Sleek, Smart, and About the PR/Media World Today

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