What I Took Away From The Cable Show (other than the tsotchkes)
- Part 1 of 2
Bill Niemeyer, Senior Analyst
May 16, 2010
Last week I attended The Cable Show (aka NCTA) in LA - the annual gathering of the cable industry. It's a mix of the glitz of the cable network side of the business with the raw excitement of the cable operators' initiatives (maybe raw excitement is overstating it). Nonetheless, there were some interesting trends in evidence, here's a topline look at some of them. (In Part 2 I'll take a look at a few more.)
Mood up - Attendance (about the same?).
While NCTA has not released attendance figures for 2010 (2009 in Washington DC was about 12,000), the show floor seemed as crowded as last year. What was definitely up was the mood of the attendees. Cable networks and operators are both reporting improving financials as the economy recovers. Technology vendors seemed to be in a good mood too as the cable operators appear to actually be moving forward on various advanced TV initiatives.
This year's Big Theme - the coming (date not specified) world of All Devices Welcome Cloud Based Cable IPTV.
CEOs and other execs from the cable operators were very eager to tell us how the cable TV plant is going to integrate with the full range of consumer purchased devices that can consume IP delivered video. And that the cable plant itself is going to go to IP based delivery and a cloud based architecture to support this plus provide more rapid services development. Comcast CEO Brian Roberts even admitted the pace of cable's innovation has been too slow (oh really?), asserted there's been a "pivot" in that pace and said he wants to "liberate from the box" (the operator owned set top box). Dear Cable Operators - it's like I don't even know you anymore.
A Note
As an optimist, I'd like to believe that cable is really speeding up the pace of innovation and I'd love to see a flexible TV plant happen. It could open up television viewing to support a wide range of new services and provide more value to cable subscribers. However, regarding cable company pronouncements of national scale deployments of advanced technologies, I'd like to quote Elvis - "A little less conversation, a little more action please." On the list of things we're still waiting for in mass scale - adequate program guides, interactive TV applications (EBIF and/or tru2way), addressability (aka targeting), a broad portfolio of VOD content from ad supported TV networks, VOD ad insertion, adequate VOD measurement, non-cable company device compatibility (how's that CableCard thing going?), a 100% digital plant and a robust TV Everywhere.
It's iPad Mania!
It felt like the iPad has created a Teachable Moment for media and cable C-level executives about digital technology innovation with regards to video. Over and over the iPad was cited in the general sessions. Comcast's Brian Roberts even showed a very cool iPad demo via a video. It showed a well executed prototype iPad program guide that also functions as a remote control. Select a program and the set top box changes the channel. Even cooler… the iPad was not directly controlling the set top through the IR port. It was sending a command up through the broadband connection to the cable plant and back down to the set top (via an EBIF app on the box). (You can see a video of it here.) It also integrates with social networks to enable sharing recommendations. Innovative, well done and rapidly developed. Maybe the cable companies are changing their stripes. Maybe.
The Secret of Success in Getting Your Digital Media Product Traction With Media and Cable Companies.
Get the teenaged kids of media and cable C-level execs to use it. If I had a dollar for every time they cited their kids' use of media on a general session panel, I would have had enough for several top-shelf drinks, which I felt like I needed after hearing that example so much. A cautionary note… teenagers living in extremely prosperous households may not necessarily be representative of all 307 million people in the United States.
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