Month: March 2015

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HBO Now Starts a War Between Cable Providers and Cable Networks

Apple and HBO announced the release of a new on-demand service called HBO Now, exclusive to Apple customers. HBO Now is an on-demand service less like HBO Go, but more akin to Netflix. This represents a shift in the cable television content distribution paradigm.

Let’s look at HBO Go for an example. Previously, in order to get on-demand television content, users would have to supply the application or online service with a cable provider login to access the content, both archived content and live content. Now, using this new service, anyone can sign up for the HBO service without having to subscribe to a cable provider.

Unlike the music industry, the television and cable TV industry has been reluctant to achieve consensus on how to provide consumers with on-demand content beyond a cable subscription. Many have speculated the difficulty in achieving a consensus on providing on-demand cable TV content to consumers who are not cable TV subscribers, is not because the content creators (HBO, Showtime, etc.) are reluctant to sell the content, but the cable providers (Comcast, TWC, etc.) are unwilling to shift their business model to an on-demand model.

“Cable providers such as Time Warner Cable, til this point, has been resistant to putting content online because their current setup, in which people pay for a cable package and then an additional $10-20 a month for HBO has been very lucrative”, says Fast Company.

HBONow

The announcement from Apple CEO Tim Cook and HBO CEO Richard Plepler signifies a massive shift and blow to the cable providers. Apple and HBO will be offering HBO content to all Apple device users (Apple TV, iPhone, iPad, etc.) for a nominal monthly fee of $14.99. It’s clear that HBO recognizes Netflix as a competitor and cable providers as a roadblock to success.

Implications:

  • Online viewing habits of consumers are shifting the way content creators and providers are distributing content.
  • Even though the on-demand online subscription base for services like Netflix and HBO don’t feature advertisements, there is now a case for product placement within shows.
  • If more services like HBO or Netflix continue make a move into the online space for subscription based, on-demand services, there will be an impact on media within the cable provider ecosystem.

In the end, it will be interesting to see how HBO’s move impacts the cable TV/provider landscape. For too long, there has been a stalemate in the battle for online subscription based networks (HBO) independent of cable subscription (TWC). Both services want to make money, we’ll see who makes it first – at the expense of the other.

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SXSW Interactive and the Exchange of Ideas

I’m pleased to announce that I will be representing Cramer-Krasselt at SXSW Interactive 2015 and obviously, I’m super excited to attend this annual, sharing of the minds convention. Even though this is my second time attending the Interactive festival, I’m still very much eager to learn, network and see what the future of marketing may hold.

As a digital strategy director at the agency, my goal at SXSW is to not only listen and assimilate new methods of digital marketing and innovations within the category, but to exchange ideas with others in the field. Where the previous time I attended SXSW, I took on a more passive role within the festival and soaked in as much information about trends, innovation and methodologies, this year my goal is to be more active. This year, my goal is to not only obtain as much information around trends, innovations and marketing methodologies, but it’s also about sharing and conversing about contemporary approaches to digital marketing with others in the fields.

SXSW INTERACTIVE

What does this secondary goal really mean? Well, it’s less about networking and more about the conversation, debate and brainstorming new ideas. It means it’s more of an active role during the week. Yes, there is the exchange of ideas with people at the festival, but I feel as though it’s more one person speaking to a room of 30. Discourse and dialogue in-between, over coffee on the sidewalk or at a restaurant is where the ideas discussed come to life.

This is not to say that I won’t be attending any sessions, far from it. I have planned out a full calendar of sessions, and yes I’m pretty double-booked. So far, my focus of the sessions will be on new technology and consumer tech approaches to wearables, the quantified self, and the Internet of Things as well as overarching innovations in digital marketing and new ways to think about the consumer.

It is also important to note, I will be assisting in a Cramer-Krasselt led workshop on Friday, March 13th at 11am called, “How to Keep Ideas Alive After SXSW.” I know that the workshop is already sold out, but if you want to discuss the ideas and approaches from that session, I’m happy to meet up afterward to discuss how you can take all these ideas back to your organization and make them come to life.

So, with all that said, if you want to meet up and discuss what we have been learning at the sessions at SXSW, I’m all for it. If you want to meet up to discuss potential agency and client relationships, I’m all for it. Basically, I’m open to the free exchange of ideas and how that is going to move our industry forward.

I will be there for the entire SXSW Interactive portion of the conference. If you want to hit me up, feel free to reach out to me using the social SXSW portal, Twitter (@ebreakdown) or on LinkedIn. Basically, you can find me anywhere.

With that said, I look forward to the new ideas, thoughts, methods and innovations at SXSW. I look forward to meeting new and inspiring people and of course, I look forward to the parties.

See you in Austin!