Posts Tagged ‘Netflix’

Who Wins In The New Media Landscape?

The past few weeks have been mostly a blur for me, what with trips to and presentations at the annual Hollywood Post Alliance Technology Retreat the week of February 14, plus presentations to the Delaware Valley chapter of SCTE last Wednesday (my annual CES recap) and the New York City chapter of SMPTE last Thursday (plasma and OLEDs as candidates for reference monitor technologies).

Through it all, I’ve been staying on top of a blizzard of news stories and press releases pertaining to media distribution (over the top, or OTT), the continued decline in packaged media sales and rentals, a new streaming service from Redbox (presumably with Amazon) and a new 3D channel from Comcast.

If you’re not tracking this brave new world of media distribution and consumption on a daily basis, it’s almost impossible to keep up with the changes. At the Tech Retreat, we had an interesting breakfast roundtable discussion on 3D in the home, and whether it was a flop, partially successful, or had any real future.

That discussion also turned to the relative scarcity of 3D movies, which in turn brought up a comment from one of the participants (Ethan Schur of TDVision) as to why more studios didn’t remaster more of their older 3D movie titles into the Blu-ray format.

The reply, as worded by participant Wade Hannibal of NBC Universal, is that the cost to do those remasters probably wouldn’t be justified by Blu-ray disc sales, let alone rentals. Similar comments were offered after we watched a beautiful restoration of Stanley Kubrick’s 1965 masterpiece Dr. Strangelove on Thursday evening. Kudos to everyone involved, but how would Sony Pictures possibly recover its investment, instead of charging it off as goodwill against taxable income?

The fact is; Hollywood does not like streaming at all. At least, not the way Netflix practices it. The revenue stream isn’t substantial enough to replace the lost income from DVD and Blu-ray sales and rentals. But with Netflix now boasting in excess of 20 million subscribers (second only to Comcast) and Blockbuster in Chapter 11 – and possible Chapter 7 bankruptcy – the studios are rapidly losing all of the high-value outlets they once had for selling movies and TV shows.

Along with Jerry Pierce, I moderated a panel discussion at HPA on over-the-top (OTT) video. Panel participants included Dan Holden of Comcast, Jeff Cove of Panasonic, and Dani Grindlinger of TiVo, and the discussions were lively. Is OTT video a real threat to traditional pay TV channel subscriptions? Comcast’s Q4 2010 financial results, released during the conference, would seem to indicate ‘no’ as they only lost about 135,000 subscribers during that time period.

TiVo has made some nice gains with Charter Communications, who will offer their Premiere series of DVRs to customers for traditional pay TV service. But TiVo also supports Netflix, YouTube, and other Internet video channels that could compete with Charter’s bread-and-butter services. Is this tantamount to letting the fox into the chicken coop and hoping he’ll stay honest?

Panasonic, who was among the leaders in pushing 3D last year, now has a Viera tablet PC and their TVs offer a wide range of connected (OTT) services, including Netflix (who else?), Pandora, Skype, Facebook, Twitter, MLB.com and NHL.com. But they’ve also opted for a proprietary ‘apps’ platform, which means that app developers have yet another proprietary format to deal with.

The one company missing from our discussion was (of course) Netflix. Their business lately can best be described as “a house on fire,” and with their stock price in the mid-$200s per share, they don’t need to explain themselves to anyone.

But there will be pushback against the big red N. And that will come with higher rights fees in future licensing agreements from the likes of Sony Pictures, Warner Brothers, Disney, Fox, et al not to mention major TV networks. It’s been pretty much conceded that packaged media (for better or worse) is on the way out, and that digital downloads and streaming are what the marketplace wants.

So the big question is how to make any money from it. Believe me, studios are very concerned about future revenue streams, which is why some of them are also discussing a shorter exclusivity window with movie theaters before popular movie titles would be available on pay-per-view (probably for $29.95 or $39.95), a proposal that is being roundly criticized by the North American Theater Owners (NATO) group.

The so-called 28-day reserve period that protects Blockbuster against Netflix and Redbox may also have to go out the window. The latest news from ‘the Block” is that it may shed as many as 600 stores, and that even a move to a streaming model isn’t going to save their chestnuts as studios sue to get millions of dollars back in unsold DVDs and Blu-rays.

However all of this turns out, there will be casualties. Blockbuster looks to be cooked and I don’t see anyone else looking to get into the brick-and-mortar DVD rental/sale model. What DVD/BD sales there are will be handled by the likes of Target, Wal-Mart, Amazon, and even my local Acme market (which had a 3’ x 3’ bin full of $9 DVDs in the candy aisle last week, including recent titles like Kick-Ass).

Netflix will likely pass Comcast in total subscribers by June of this year; maybe sooner (they added 3 million subscribers in Q4 of 2010). Redbox should have its movie streaming service up and running by then, and they may soon be joined by none other than YouTube. What kinds of deals will Hollywood ink with these companies?

One of the great ironies of all this is that Blu-ray player sales are picking up speed as their prices continue to drop. But anecdotal evidence so far is that consumers are buying BD players mostly for Netflix streaming – it’s cheaper than buying a new TV to gain Internet connectivity, and you can always play the occasional DVD or Blu-ray disc if you need to. (And I know where you can find some really good deals on cheap Blu-ray discs, over by the detergent, paper towels, napkins, and household items aisle…)

CES 2011: Applications? Plenty! Buzz? Ahhh, Not So Much…

How do you like THIS for a videowall?

If you still needed any convincing that the U.S. economy is on the rebound, the 30-minute-long cab line at McCarran Airport did the trick. Attendance at this year’s running of the world’s ultimate gadget expo was WAY up, probably hitting 2007 levels. (CES claimed 140,000 in attendance, but my guess is that the real number was more like 90,000 – 100,000, based on cab lines and traffic.)

But CES was a vastly different show than in recent years. True “wowza!” product demos were few and far between. Instead, what we saw were ‘apps’ – practical, real-world applications of technologies introduced in the past couple of years. (And of course, umpteen million tablet computers.)

Smart phones were huge this year, and they were doing everything from shooting videos to doubling as game controllers and even talking to ovens and refrigerators. The Android OS rules this space, with Windows coming up far behind. If there was a possible use for a smart phone, someone demonstrated it in a booth (including 3D).

Ever expect to see 3D on an MH receiver? Neither did I.

A wonderful moment, indeed.

Discussions of “the cloud” were heard in every hallway. For those readers who don’t know what “the cloud” is, it’s the concept of storing and accessing media files from remote servers, streaming or downloading it to view on portable and desktop displays. Netflix streaming is a good example of “the cloud,” and many industry analysts believe “cloud” delivery of content is where everything is headed – no more big hard drives or optical disc readers, just fast wireless and wired Ethernet connections.

Speaking or wireless, it’s all the rage. I lost track of all the wireless connectivity demos, ranging from wireless USB 3.0 docking stations to full-bandwidth 1080p video and multi-channel audio streaming to TVs from Blu-ray players, using the 6 GHz radio frequency band.

And those tablet computers…they were everywhere, so many that tablets suffered the ignonimous fate of moving from the most anticipated new product at the opening of the show to “so what?” products by its closing. I saw just as many off-brand and white label tablets in the lower regions of the South Hall as I did at the Blackberry, ViewSonic, Samsung, Sharp, Sony, and Panasonic booths. Can you say, “buzz kill?”

That's a complete nVidia workstation graphics card, connected through 6 GHz wireless links.

How does a Wireless USB 3.0 docking station grab ya? Samsung's got it.

3D TRENDS

Last year’s show was dominated by 3D. You couldn’t get away from it! This year, the 3D pickings weren’t quite as abundant, although a few companies (Sony and Panasonic) continued to place a heavy emphasis on stereoscopic TV viewing in their booths.

Toshiba did too, except they chose to emphasize glasses-free (autostereo) 3D exclusively in their booth. LG opted to show passive 3D products that use inexpensive circular-polarization glasses, along with a single autostereo LCD TV. Meanwhile, Sony had concept demos of a portable 3D Blu-ray player and a 24-inch autostereo organic light-emitting diode (OLED) TV.

The reduced emphasis on 3D might have something to do with the paltry sales of active-shutter 3D TVs in 2010. Sales numbers were nowhere near what anyone predicted, which could partly be blamed on the recession. But it could also be blamed on a perception that there is a format war brewing in the world of 3D TV (shades of the 1080i vs. 720p battles from ten years ago).

Toshiba's 15-inch prototype autostereo notebook display uses a built-in camera to adjust the 3D viewing angle to your position.

HELLO, 1958! Polaroid actually showed a blue-yellow anaglyph 3D demo at CES. (CAUTION: Don't watch Avatar this way...)

Toshiba’s recent announcements of glasses-free 3D TV certainly added to that perception, and that’s all they showed at CES. Meanwhile, LG and JVC seem to be leaning towards passive 3D (embedded polarizing filters) in their LCD TVs, and in fact LG had large baskets of passive 3D glasses available to both visitors.

The LG autostereo LCD TV worked about as well as the Toshiba models. As you change your viewing position, patterned film retarders (PFRs) built-in to the LCD surface create a new perspective and viewpoint, blocking some pixels and revealing others. It works, but you’ve seen the same effect before with static digital signage displays in retail stores and in airports. And it’s not easy to watch 3D video this way for very long.

There were plenty of autostereo handheld display demos. LG’s new Optimus smart phones were shown as game controllers for 3D gaming systems, but were also displaying mobile 3D content. Nearby, LG had a demonstration of autostereo 3D as broadcast from Las Vegas DTV station KLVX, using the MH mobile digital TV standard.

Sony showed an autostereo media player in its booth, along with the aforementioned portable Blu-ray player with autostereo screen. (Frankly, I think the market for portable BD players is pretty miniscule, but the autostereo images looked quite nice.)

Sony's 24.5-inch autostereo AM OLED was a show-stopper.

JVC's got some skin in the 3D game with this 65-inch passive 3D LED LCD TV.

Sharp, who last year missed the boat on 3D – and whose U.S. market share in TV sales continues to drop precipitously – rolled out the 3D bandwagon this year, with a full line of Quattron 3D TVs out for inspection, including a new 70-inch model. Hidden away in another part of their booth were demos of 3.8” and 10.6” autostereo LCD displays for handheld devices.

JVC, who has been concentrating more on projection products lately, unveiled their first consumer passive 3D TV. It’s a 65-inch, edge-lit LED model with embedded micropolarizers that work with RealD theater glasses. Back in the Central hall, Hisense, Konka, and TCL all showed Chinese-made 3D sets with active shutter glass technology, while VIZIO threw its hat in with the passive 3D crowd, unveiling several models that use embedded polarizing filters and passive eyewear.

Hmmm…maybe there IS something to this 3D format war, after all…

NETWORKED TVS

It was hard to find a TV at CES that didn’t sport some sort of Internet connection. Panasonic (VieraCast), VIZIO (VIZIO Internet Apps), Sony (Google TV), LG (Smart TV), and Samsung (Samsung Apps) all had full plates of NeTVs out for inspection, along with numerous connected Blu-ray players. By the way, the ‘connected’ part of Blu-ray players is the big reason they are finally selling so well, as consumers apparently can’t get enough of YouTube and Netflix streaming.

There were also plenty of demos of smart phone control of TVs, using WiFi to stream back a lower-resolution version of the content being displayed on-screen. I’m not really sure why anyone would need that functionality, especially if they are already sitting in front of the TV watching whatever program or movie is playing out. Maybe it’s just in case you need to run to the bathroom?

Don't have Internet connectivity on your plasma or LCD TV? LG's got the fix.

You want a TV remote? I'll show you a TV remote!

LG went everyone better with their ST600 Smart TV adapter. Remember ATSC set-top boxes from the DTV transition? Well, the ST600 is an Internet TV adapter that works with any set through its HDMI port.  It costs about $150, and gives you a Web browser, plus one-button access to popular Internet TV sites like Netflix, CinemaNow, VUDU, Hulu Plus, YouTube, MLB TV, Pandora, and others.

Sony prominently featured their Sony Smart TV product line, based on Google TV. This product has really stumbled out of the gate, probably because of the incredibly complex keyboard remote control (remember Web TV, anyone?) and the fact that a majority of Web video surfing can be accessed with directed one-button Hulu Plus, Netflix, and YouTube apps. Maybe we’ll see a simplified version of the product from Sony in 2011.

Panasonic rolled out its own tablet computer, as previously mentioned. The Viera Tablet is part of a “cloud” focused content delivery strategy (there it is, again!) that will let consumers access on-demand and VIERA Connect content. The tablet will actually be available in several different sizes, ranging from 4” to 10,” and also functions as a TV remote control.

Sharp also featured connected Blu-ray players, with directed apps for VUDU taking center stage. Three new models use wireless connections to access Netflix, VUDU, Pandora and YouTube content via streaming connections. They also took the wraps off a 70-inch Quattron LCD TV with built-in WiFi and a support for CinemaNow, Netflix, VUDU, and DLNA video streaming.

Sharp's got a new 70-inch LCD glass cut, and wireless Internet connectivity to go with it.

Samsung didn’t have quite as many sexy NeTV announcements, but they did have the largest LCD TV at the show (75 inches) and prominently featured their Smart Hub technology. You can access the usual suspects through wired and wireless Ethernet connections, along with Blockbuster, MLB.TV, AccuWeather, Facebook, Hulu Plus, and History Channel content, among others.

PROJECTION TRENDS

There wasn’t a lot of projector news from CES. Texas Instruments used the event to launch a new line of DLP Pico HD chipsets. These are tiny WXGA-resolution (1280×800 pixels) digital micromirror devices (DMDs) that are used in picoprojectors and pocket projectors, and there were plenty on display in the TI suite. They had picos running in GE digital cameras, Sharp smart phones, and even a prototype tablet computer.

Sony even showed a DLP-based picoprojector in a new digital camera at Digital Experience, an interesting development considering that both companies parted ways back in 1996 after Sony built its first and only SVGA DLP high-brightness projector.

Yes, Pico DLP chips really are that small.

Even digital cameras are equipped with picoprojectors nowadays.

Other picoprojectors were shown from LG, ViewSonic, Acer, and Optoma. The Optoma iPod docking station with built-in picoprojector was a clever product, as was the GE digital camera. But most of these projectors cast small, dim images, and you have to wonder how the explosion of tablet computers will affect this market, considering that both picos and tablets would be used for very small group presentations.

Several 3D projectors took a bow in Las Vegas. Mitsubishi finally has a model number for its LCoS 3D projector (HC9000), while Sharp announced the XV-Z17000 DLP 3D chassis. Samsung’s also got a new 3D box, the SP-A8000, which also uses DLP technology. Over in the JVC booth, the previously-announced DLA-X9 and DLA-X7 D-ILA (LCoS) 3D front projectors now have THX 3D certification – apparently the only models to earn that appellation so far. The general consensus is that DLP produces better blacks and higher contrast than LCoS 3D projectors, but that will remain to be seen. (I expect to have a review sample of the Mits unit in mid-March.)

Mitsubishi’s big screen TV division continues to hang on in the rear-projection DLP marketplace and is actually doing quite well, thank you very much. (It’s easy to capture 100% market share when you are the only player!) They launched a 92-inch DLP set with 3D compatibility, and while it doesn’t have a model number yet, expect it to sell in the mid-$5000 range, with active shutter glasses an extra.

Is a 92-inch 3D screen big enough for ya?

NO?? OK, then how about a 155-inch OLED screen?

WIRED VS. WIRELESS NETWORKING

I met with most of the major networking groups at CES. Two of them (HDBaseT and DiiVA) are very close in theory and practice, with structured wire being used to distribute video and audio between connected devices. Both systems also support USB connectivity for remote gaming control, and both systems can deliver power to connected devices (100 watts for HDBaseT and 24 watts for DiiVA).

Many commercial interface manufacturers are incorporating HDBaseT infrastructures into their AV switching products, the latest being Crestron (Digital Media) and Gefen. AMX already uses a version of HDBaseT in their AV switchers and distribution amplifiers.

DiiVA is apparently gaining popularity in China, where new apartment buildings and houses all have structured wire pulls. Most of the companies that have DiiVA-compatible products are also (not surprisingly) based in China.

Keep your eye on Diiva for both consumer and commercial applications.

A touch of the button is all it takes to get you in a surround-sound sweet spot, courtesy of Summit Semiconductor.

On the wireless side, Summit Semiconductor, Aeleron, and Amimon all showed system-on-chip solutions for high-bitrate video and audio distribution. Amimon is the founder of the Wireless High Definition Interface (WHDI) and showed wireless display connectivity to remote PCs, as well as Blu-ray 1080p playback to specially-equipped LG and Hisense wireless LCD TVs.

Aeleron featured Ultra WideBand (UWB) connectivity of 1080p streaming and docking systems that work with TVs, laptops, smart phones, and other media players. They also featured DLNA-compatible UWB adapters for in-room signal distribution (UWB can’t go between rooms) and driverless HDMI interfaces.

Summit’s demo was perhaps the most interesting. It featured uncompressed distribution of wireless multi-channel surround audio to randomly-placed powered speaker columns. A special remote activates a supersonic Doppler system that automatically adjusts the levels of all speakers so that you are sitting in t ‘sweet spot,’ no matter where you are in the room, or where the speakers happen to be placed. It takes all of ½ second for this adjustment to be made.

Back over in the Hilton, Sigma Designs has found a way to reduce line noise and broad spectrum interference in HomePlug systems. Turns out, all those battery chargers and AC adapters are pretty ‘dirty,’ which clips the available bit rate for moving video and audio through decoupled AC power lines. With the Sigma enhancements, the receive speed (to a media player or TV) is as much as 65% of the transmit speed (from the playout source). With normal HomePlug appliances, the receive speed can drop to as little as 20 – 25% of the transmit speed.

Who knew HomePlug systems were so noisy? (not to mention iPad AC power adapters...)

Guess what? Your smart phone can talk to your oven now. And your refrigerator, and washer, and dryer, and...WHAT??? No! Not the TOILET!!!

THE WRAP

There was so much more to report on from CES. Many of the new TVs and accessories will be featured in upcoming spring line shows, where I’ll take a closer look at each. You can also find news about specific model numbers and pricing at many other media outlets, along with each manufacturer’s specific Web sites.

If there was anything to take away from the show, it was that TVs were not the big news at CES this year. Instead, multi-function smart phones and connected media appliances generated all the buzz. We’re definitely in for a protracted battle between the “your TV should be the hub!” advocates and the “Connect outside the TV!” evangelists, not to mention the “go wireless!” and “use wired connections!” camps.

I tend to favor the “connect outside the TV” and “go wireless” arguments, although it is a tricky task to stream high-definition video in an uncompressed format between rooms in a house. (And no, the FCC taking away more UHF TV channels won’t help at all – there’s not enough spectrum space in the UHF band for 512 MHz channels!)

3D will continue to muddle along this year, as the economy slowly recovers and consumers sit on their hands. The confusing “glasses or no glasses” messages won’t help. Active-shutter 3D and passive 3d are clearly superior to autostereo 3D for viewing TV shows and movies, but you have to test-drive all three modes first to understand why. Look for the passive systems from LG, JVC, and VIZIO to pick up more market share as the year winds on and consumers realize they can use their freebie movie theater glasses at home.

LG's placing its bets on passive 3D TV.

Samsung's flexible OLED displays don't get bent out of shape.

NeTVs are here to stay and potentially a lot more popular than 3D. Sony’s Google TV approach may be too complicated for most consumers, who are likely to favor the simpler direct channel apps offered by everyone else. And if they can access Netflix, YouTube, and Hulu Plus, they may not need much else. Look for LG’s Internet converter box to be copied by other manufacturers so that older TVs can join in the fun.

It was nice to see a few OLED TV demos this year, but once again the technology just isn’t ready for prime time. Look for Samsung to show an OLED Galaxy tablet later this year, if for no other reason than to prove they can make one. But it will be a while before you can buy it. The rest of the tablet and smart phone crowd will stay with tried-and-true LCD technology for the time being.

Blu-ray disc and player prices will continue to plummet. I’ve predicted that major brands will stop making conventional DVD players altogether in 2011, moving to Blu-ray as their exclusive platform. While we didn’t see any BD players with internal hard drives like those sold in Japan, they’re not far off. Too many people are using Netflix streaming and would like to try a straight digital download for improved image quality. What better place to enable a DVR than in a BD multifunction media hub?

And get used to using your smart phone to do everything. Game console controls, TV remotes, autostereo displays, even diagnostic tools to use with connected major appliances – all of these smart phone applications were shown at CES.

So was a iPhone case with a built-in bottle opener, which might turn out to be one of the most useful smart phone “apps” of all…

No comment!

Google TV: Oops! Never Mind…

In a story reported by the New York Times, Google has asked TV manufacturing partners Toshiba, Sharp, and LG to hold off on introducing any new Google TV products at next month’s Consumer Electronics Show.

The official reason is that Google needs more time to refine the software. The real reason may be the lackluster reception that Google TV has gotten so far from consumers. The first sets to launch with Google TV were Sony Bravia TVs, back in October.

If any readers walked the aisles of Best Buy recently, you probably noticed the Google TV kiosk that featured an incredibly complex remote control – one that outdid Rubik’s Cube in complexity. The Sony Google TV remote featured two mouse disks and dozens of tiny alphanumeric keys, and was a sure turn-off for those viewers used to one-button navigation to Netflix and YouTube.

It's just like a smart phone keyboard...only vastly more complex...

In fact, the question now is whether there is any real interest in using a video engine as part of a NeTV – or if consumers are happy with icons or apps that take them directly to Hulu, Netflix, or other content sources.

To make matters worse, major TV networks including CBS, NBC, and ABC are blocking their online programming from Google TV, as is Hulu. Given that the top-rated TV shows are carried by these “old school” networks – as is the current #1 time-shifted show, The Office – that’s not good news for early adopters.

Logitech’s Google TV set-top box has also met with indifference and disdain. According to the Times story, 38% of reviewers on Amazon.com gave the Logitech Google TV receiver three stars or less, and 19% gave it just a solitary star. Not good!

Does this mean consumers don’t like the idea of NeTVs? Not at all. What they DO seem to prefer is a limited number of directed channel apps for the most popular content providers, and not another Web TV-approach to merging computer and TV viewing…something that is akin to mixing oil and water.

Don’t bet against Google, though. They’ll eventually figure out what consumers want and don’t want. The question is; can they compete against the amazingly user-friendly TiVo interface and the ‘directed apps’ approach of companies like Samsung (also a Google TV partner)?

And is Google TV destined for success, or will it go the way of Web TV? (Challenge: Do any readers even know what happened to Web TV? It’s still around, although under a vastly different name…)

Can You Cut the Cord and Still Find Happiness in TV Land?

The newspapers have been full lately of stories that (a) claim cord-cutting will have no impact on pay TV viewing, or (b) show an increasing number of TV viewers are dumping (or strongly considering dumping) cable TV packages in favor of broadband video, or broadband plus over-the-air digital TV.

On the “it’s no big deal side,” you’ll find ESPN and Frank Magid Associates, while the “cord cutting is a growing trend” camp is represented by Parks and Associates, Time Warner, and SNL Kagan. While both sides acknowledge that the pay TV industry suffered its first-ever net loss of subscribers from April to September of this year, they disagree on the reasons.

ESPN and Magid claim that the total subscriber churn is less than 1%, and may be as low as one-quarter of one percent. They attribute the drop-off to the recession and expiring triple-play special deals. Parks points to the explosion in sales of Internet-connected TVs (NeTVs) and connected Blu-ray players and DVRs. Time Warner, in the meantime, just launched a lower-price basic “popular demand” channel package to hold on to subscribers, and will be followed by Charter Communications shortly.

Time for some clarity! According to a story on paidContent.org, Needham & Co. analyst Laura Martin reported the results of a simple request she made of 300 respondents in October: “Please list which TV channels you must have available online in order for you to turn off your pay TV subscription.”

Guess who sat at the top of the list? CBS, named by 35% of respondents. The #2 slot was filled by ABC (right behind at 34%), while Fox was in a tie with NBC at 31%.

The highest-rated pay TV network was (no surprise) ESPN, listed by 27% of respondents. The rest of the top ten was made up of Discovery (19%), History Channel (14%), HBO (11%), Comedy Central (10%), and The Food Network (also 10%).

It’s interesting that the top four networks are also available in many markets for free as over-the-air digital TV broadcasts. That also may explain why some cord-cutters are quick to dump cable TV and get their TV fix with antennas and a broadband connection.  (For what it’s worth, PBS finished in a seven-way tie with The CW, MTV, HGTV, CNN, Lifetime, and Bravo.)

The paidContent article comments that most respondents who voted for at least one over-the-air TV network also listed the rest of them. “Most folks think of the four broadcasters as a monolith,” said Martin. “This may be because consumers actually watch shows on all four broadcast networks, or it could be because they have no idea which network their favorite shows are on.”

For viewers who live near major cities, it’s not unusual to have as many as 30+ minor channels of free, over-the-air programming available. Those viewers are also more likely to have fast broadband, so cutting off cable or satellite TV still leaves them with plenty of program choices…and apparently, their ‘can’t live without’ TV networks as well.

So yes, you can find some happiness in the world of free TV…so long as you are willing to part with a few cable and satellite networks, and have a good broadband connection for Hulu, Netflix, YouTube, and other Internet TV channels.

To Readers: How about you? Would you be willing to drop cable or satellite TV, and just live with what you can watch using an antenna and a fast Internet connection? Or maybe you’ve already cut the cord? I’d like to hear your comments one way or the other.

Blu-ray: Those hotcakes must be getting cold

Warner Brothers Entertainment recently expanded its DVD2Blu promotion to include any DVD of any movie or TV program – not just DVD releases of Warner titles.

For those readers who are not familiar with the program, DVD2Blu allowed anyone to trade in older WB movie titles on DVD and get a credit towards the purchase of a new Blu-ray version. The upgraded BD would cost about $8, including shipping.

Now, WB has expanded their program and will accept any professionally-produced DVD – movies, TV shows, sports, etc – towards the purchase of a WB Blu-ray movie or WB Television collection, with prices starting as low as $4.95. According to the ad, which is shown below and can be accessed at http://www.dvd2blu.com/ there are over 100 BD titles to choose from. Order more than $35 worth, and WB will throw in free shipping.

For Blu-ray fans, this is quite a promotion. You can send in DVDs you picked up at discount bins, discarded from libraries, or were given for Christmas presents. All you have to do is mail in the disc (not the packaging) and pay the discounted price, plus shipping (except where noted) to get new BDs for your collection.

From here, it seems like a desperate move by WB to thin out a backlog of BD titles that aren’t moving. Earlier this week, I wrote about the latest Digital Entertainment Group report that showed digital distribution of content is zooming ahead of physical distribution. The report also mentioned that tens of millions of BDs have been shipped to retail. Apparently tens of millions of BDs are still sitting at retail, too.

The costs of administering such a mail-in program aren’t cheap, either. All of the DVDs will have be disposed of, and there are the usual associated shipping and handling costs to deal with.

This move by WB is significant because they are one of the largest distributors of packaged media, along with Disney, who has yet to announce any type of redemption or discount program for their BD titles.

I recall a conversation with a Disney executive a few years back at the HPA Technology Retreat. His comment cut to the chase: “If the industry wants Blu-ray to be successful, they should just stop pressing regular DVDs and make Blu-ray the only optical disc format. That would do the trick!”

Of course, at the time, BD players were in the neighborhood of $500 – $700 dollars and largely ignored by the general public, who gravitated towards cheaper upscaling DVD players instead.

Times have changed. Nowadays, BD players can be had for as little as $80, and even 3D models are plummeting in  price – at least one is selling for less than $200, and a couple more are approaching that price point.

Given the slow but steady decline in overall sales of packaged media (DVD, BD, and the few VHS tapes that are still in circulation)  – down 8% this year over last – it’s time for Hollywood to ‘sink or swim’ by committing to the BD format and start making plans for the sunset of RL DVDs. Even Netflix has announced it will exit the DVD distribution business in the next five years and concentrate on its ‘bread-and-butter’ streaming offerings.

Wonder when the next round of BD fire sales will start?