Netflix (NFLX) CEO Reed Hastings tells the Financial Post that he thinks traditional fixed TV services will die out as a "bunch of different apps" compete for the time and money of consumers. The exec also said during the expansive interview that he doesn't see Netflix raising its $8 monthly fee despite rising content costs. [View news story]
Right. And seniors are motivated to cut the cord as well as cost increases on cable services continue to rise. Now affectionately referred to as a seniors, we cut the cord in March as services on both homes approximated a monthly car payment. Our line up includes:
1) Local broadcast TV via mohu Sky antennas. 2) Tivo for DVR recording of same and channel guide. 3) Apple TV for Apple content, radio, hulu, Netflix, youtube and MLB. 4) Verizon or Comcast for internet depending on location. 5) Verizon for smartphone cells replacing land line. 6) Sirius for cable news and entertainment in car with a indoor docking station.
Net result is more content that we want - when we want, non-compressed1080i resolution with much lower bills and DVR that is much superior to the offerings from cable. We also don't miss all the annoying HDTV boxes throughout the homes with annoying remotes. All our friends want the information and how to as well.
Here is a link on a company that will do well in this environment:
3 Apple 'Long Shots' That Could Happen [View article]
Good point. Although my most recent experience with the overbearing/overwhelming prompts on a Sirius support call make me hesitant to say I want to talk to my Display. Tivo interface and a finger would be perfect.
I have Ford Sync in my vehicle and mostly choose finger over voice, except of course when the system locks me out over five mph. I expect it would be more acceptable if it would quickly recognize my sentence and paragraph requests over the painful, single syllables, long pause to switch pattern we currently use. Wonder how long that will take.
Maybe a Big Bang project for Sheldon and the other Trekies??
The Good News, The Bad News And What's Very Ugly [View article]
Rich W,
"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
-- John Maynard Keynes
No wonder our politicians love Keynes. Taxes without consequences - Priceless!
Bernake's effort to inflate the US out of our debt hole is on target. 4%/yr for 17 years could get it done. Conveniently masked by the the CPI, which ignores food and energy increases through "substitution" and "volatility," the first significant upward trends in both are hitting consumers hard since commute expense and food are a very large portion of the middle-income earners' expenses. Combine inflation with tax increases and policy makers are hoping to hide from the world by implementing over a long period and blaming ...uh, yeah, China. That's the ticket. China.
When it comes to wise stewardship of assets and NIMBY thinking, the American public needs to accept a large part of the blame. We keep supporting non-productive assets like parks, monuments and museums. But pipelines, power lines and plants are viewed as morally impure. The former requires an unending stream of costs beyond the initial expense. And of course the curator requires a pension four times that of SSI.
Summary Of My Post-Employment Thoughts [View article]
In one of the first Republican debates, someone directed a question to Huntsman on why he employed 15,000? workers overseas rather than in the US. His quick response, without even a blink, was that it would be impossible to get approvals to build these plants in the USA.
Right on about structural changes. During my career, I worked with many manufacturers, helping to automate processes, both on the factory floor and front office. The efficiencies wrung out of factories even back in the late 90's were stunning. Two quick examples. A process manufacturer moved from over 400 employees to 45 across three shifts and doubled production from $1B to $2B simultaneously. Interestingly, they moved the old plant to a third world country where labor rates were cheap enough to make the assets still viable and avoid exporting from the USA.
In 2002, an auto parts manufacturer automated a factory in Michigan, moving jobs back to the US. They produced 300,000 radiators across three shifts with twelve employees. Total! Since many of the Chinese factories are state of the art, with a very compliant, motivated workforce, I doubt we will ever see them return stateside, barring some phenomenal increase in transportation costs.
Karl's math appears correct and the "increase" is actually a massive decrease. This was pointed out by several analysts in the media as well. Your productivity comments are right on target.
April Nonfarm Payrolls:+165K vs. consensus +145K, 138K previous (revised from +88K). Unemployment rate 7.5% vs. consensus 7.6%, 7.6% previous. [View news story]
Down goes the dollar so it takes more to acquire assets. The Professor tries to inflate housing but the consumer desire for that asset is in the toilet, even if they had the credit worthiness to act.
Worthy of a shell game. When it ends the uninformed will be startled to find their shell contains...nothing! And, prices will be rolling out of sight. The "volatile" food sector will only be volatile upwards, a trend its been on since the pump began in 09, and at an all time high, while China goods will be cheap no more.
Thank you Gentle Ben. The other guy will be blaming Congress and deep into planning a library in Hawaii.
Why Is Apple Issuing Debt For Share Repurchases? [View article]
Exactly. A lot of the comments are correct but bottom-line, adding debt increases valuation. Seemed almost counter intuitive when first introduced to the concept. Cash decreases share price. Debt increases. Go figure.
Why Is Apple Issuing Debt For Share Repurchases? [View article]
Unfortunately for the vendors you mentioned they were one-trick ponies without the ecosystem and customer loyalty of Apple. Having owned all of the manufacturers phones you mentioned, including the iPhone, Kindles and Samsung phones, and dealt with their support arms, Apple clearly differentiates itself with the ease of use and technology across a broad set of integrated products and services.
If you are thinking phones or PDAs define Apple, you are not seeing their true value. Having been a MSFT bigot for many years, I have been gradually purchasing all the low end Apple products. After all, iTunes is free. From iPods, we've added iPhones, AppleTV, a tablet, the Cloud and AirPort communications products. The comparison to open systems in terms of overall ease of use, reliability, support and ease of installation is stunning. It's integrated. It works. Support actually helps. It is what the consumer wants but maybe not the challenge the geek or frugal do-it-yourselfer desires. I'm betting Apple is much deeper and stronger than you currently perceive, especially among the general consumer.
It's The Ecosystem, Stupid: What The Ratings Agencies Said About Apple [View article]
Great insight. If you have been around the tech industry for a while, you understand the support issues relating to open systems. Organizations have solved some of the issues by restricting users to a list of supported hardware and software services, resulting in a wide variety of individualized ecosystems, with attendant costs to maintain and support.
The brilliance of Apple is addressing the consumer space ecosystem, ignored by individual device makers. On Monday, we received our two new iPhone 5s. Using wifi, the phone lines were transferred in seconds. Then, backing up our 4s to iTunes cloud and a restore to the 5, they were ready to use. No tears, panicked support calls or geek squads involved. iPods, tablets and TV all work perfectly with the new phones.
Some users will always be frugal or "tech macho", enjoying the challenge of lashing disparate systems together. Personally, after crawling down more computer rat holes than patience can endure, I'm glad to deal with a vendor whose products work reliably, seamlessly and are incredibly innovative. I suspect the vast majority of consumers feel likewise. My next project, after offing my cable supplier and converting to over the air and internet TV via Apple, is to dump my MSFT/HP laptops for Apple products. Can't wait.
Google Now, Not Google Glass, Is A Game-Changer [View article]
Matt,
Excellent point. We all view the world through the prism of our own needs and experiences, forgetful of the very unique reality each individual experiences. I would assume similar communities of users would arise to take advantage of this available technology as two other commentators have already mentioned.
I love music on my pod and phone and have numerous apps on the phone for guitar. Most of my friends have neither but they do have other apps I find of little value. Search is the one common need for all users and I can visualize that common thread and the apps or customization applying to all these unique individual interests.
Maybe the old saw will change from, 'walk a mile in my shoes' to 'Now see the world through my Glass.'
Global PC shipments fell 13.9% Y/Y in Q1 to 76.9M units, per IDC. That surpasses Q4's 6.4% drop and Q3's 8.6% decline, and is steep even in light of IDC's recent commentary. IDC: "It seems clear that the Windows 8 (MSFT) launch not only didn’t provide a positive boost to the PC market, but appears to have slowed the market." H-P (HPQ) was the market's leader, but its share fell 200 bps Y/Y to 15.7%. #2 Lenovo (LNVGY.PK) saw its share rise 210 bps to 15.3%, and #3 Dell's rose 40 bps to 11.8%. Apple's (AAPL) U.S. share rose 60 bps to 10%, though U.S. Mac shipments fell 7.5% to 1.4M. [View news story]
Carly wasn't merely shortsighted but blinded. Her decision, along with her cohort in crime Patty Dunn, helped save Barclay millions by recycling those Compaq shares to HPQ. Then they both made millions, Carly 120 if I remember right. She wouldn't recognize technology if a rack of it fell on her head. But a dollar? She would do anything for her personal enrichment.
A Johnson-Less J.C. Penney Is Still Dead In The Water [View article]
We wandered through a redesigned Penney's yesterday and can see why Johnson is out. Boredom. Dull displays, high prices, no buyers. My wife noticed that a pair of Camo shorts were $35! Really? This was his genius? Made be think of an old joke of two ways to make a million. Sell a million straw hats at a dollar a piece or one hat for a million.
In contrast, we wandered down the mall to Sears. Lots of color, more selection and merchandise, better displays. Much more of a Kohl's look, except tidy and bright. More brand names with better pricing than Penney's. From our brief consumer survey, JCP was going no where with Johnson.
I've recently disconnected Verizon FIOS from our winter home and will do the same at our other, pulling the plug on our Comcast XfinityTriple Play. Between the two, we'll save close to $2000/year. The company above, Aereo, was not involved in this decision as I was able to obtain all my broadcast from a great little antenna called mohu. But I will definitely look at Aereo if reception is an issue or the number of channels increase by using Aereo.
Besides the mohu antenna, I've got an Apple TV box that provides access to youtube, netfilx, MLB, Vimeo and others for content. Apple TV has been extremely reliable, simple to use and easy to set up. Hooked it up to the existing TV's with a distribution amp and my router. Some cable channels will be missed such as cable news but it is inevitable that broadcast TV will also come to the internet.
Comcast? In one home, our HOA committed to VZ FIOS so we will only have access to the internet from VZ. In the other, we have a choice between ATT and Comcast so we can pick the more reliable, lower cost provider. My guess is that will be Comcast.
The internet and broadcast HDTV will severely disrupt Direct, Comcast, and Verizon over the next several years and there are plenty of articles on the web on how to disconnect. It will take time but it is inevitable and probably a major reason for the NBC acquisition.
Netflix (NFLX) CEO Reed Hastings tells the Financial Post that he thinks traditional fixed TV services will die out as a "bunch of different apps" compete for the time and money of consumers. The exec also said during the expansive interview that he doesn't see Netflix raising its $8 monthly fee despite rising content costs. [View news story]
1) Local broadcast TV via mohu Sky antennas.
2) Tivo for DVR recording of same and channel guide.
3) Apple TV for Apple content, radio, hulu, Netflix, youtube and MLB.
4) Verizon or Comcast for internet depending on location.
5) Verizon for smartphone cells replacing land line.
6) Sirius for cable news and entertainment in car with a indoor docking station.
Net result is more content that we want - when we want, non-compressed1080i resolution with much lower bills and DVR that is much superior to the offerings from cable. We also don't miss all the annoying HDTV boxes throughout the homes with annoying remotes. All our friends want the information and how to as well.
Here is a link on a company that will do well in this environment:
http://nyti.ms/11EDjWc
3 Apple 'Long Shots' That Could Happen [View article]
I have Ford Sync in my vehicle and mostly choose finger over voice, except of course when the system locks me out over five mph. I expect it would be more acceptable if it would quickly recognize my sentence and paragraph requests over the painful, single syllables, long pause to switch pattern we currently use. Wonder how long that will take.
Maybe a Big Bang project for Sheldon and the other Trekies??
The Good News, The Bad News And What's Very Ugly [View article]
"By a continuing process of inflation, governments can confiscate, secretly and unobserved, an important part of the wealth of their citizens. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one man in a million is able to diagnose."
-- John Maynard Keynes
No wonder our politicians love Keynes. Taxes without consequences - Priceless!
Bernake's effort to inflate the US out of our debt hole is on target. 4%/yr for 17 years could get it done. Conveniently masked by the the CPI, which ignores food and energy increases through "substitution" and "volatility," the first significant upward trends in both are hitting consumers hard since commute expense and food are a very large portion of the middle-income earners' expenses. Combine inflation with tax increases and policy makers are hoping to hide from the world by implementing over a long period and blaming ...uh, yeah, China. That's the ticket. China.
When it comes to wise stewardship of assets and NIMBY thinking, the American public needs to accept a large part of the blame. We keep supporting non-productive assets like parks, monuments and museums. But pipelines, power lines and plants are viewed as morally impure. The former requires an unending stream of costs beyond the initial expense. And of course the curator requires a pension four times that of SSI.
Summary Of My Post-Employment Thoughts [View article]
Right on about structural changes. During my career, I worked with many manufacturers, helping to automate processes, both on the factory floor and front office. The efficiencies wrung out of factories even back in the late 90's were stunning. Two quick examples. A process manufacturer moved from over 400 employees to 45 across three shifts and doubled production from $1B to $2B simultaneously. Interestingly, they moved the old plant to a third world country where labor rates were cheap enough to make the assets still viable and avoid exporting from the USA.
In 2002, an auto parts manufacturer automated a factory in Michigan, moving jobs back to the US. They produced 300,000 radiators across three shifts with twelve employees. Total! Since many of the Chinese factories are state of the art, with a very compliant, motivated workforce, I doubt we will ever see them return stateside, barring some phenomenal increase in transportation costs.
Structural it is.
Summary Of My Post-Employment Thoughts [View article]
Nonfarm Payrolls Up 165,000 - A Look Inside [View article]
1%(143M)=1.43M
.5%(143M)=715,000
Karl's math appears correct and the "increase" is actually a massive decrease. This was pointed out by several analysts in the media as well. Your productivity comments are right on target.
April Nonfarm Payrolls: +165K vs. consensus +145K, 138K previous (revised from +88K). Unemployment rate 7.5% vs. consensus 7.6%, 7.6% previous. [View news story]
Worthy of a shell game. When it ends the uninformed will be startled to find their shell contains...nothing! And, prices will be rolling out of sight. The "volatile" food sector will only be volatile upwards, a trend its been on since the pump began in 09, and at an all time high, while China goods will be cheap no more.
Thank you Gentle Ben. The other guy will be blaming Congress and deep into planning a library in Hawaii.
Aloha!
April Nonfarm Payrolls: +165K vs. consensus +145K, 138K previous (revised from +88K). Unemployment rate 7.5% vs. consensus 7.6%, 7.6% previous. [View news story]
BL monthly downward revision to follow.
Why Is Apple Issuing Debt For Share Repurchases? [View article]
Why Is Apple Issuing Debt For Share Repurchases? [View article]
If you are thinking phones or PDAs define Apple, you are not seeing their true value. Having been a MSFT bigot for many years, I have been gradually purchasing all the low end Apple products. After all, iTunes is free. From iPods, we've added iPhones, AppleTV, a tablet, the Cloud and AirPort communications products. The comparison to open systems in terms of overall ease of use, reliability, support and ease of installation is stunning. It's integrated. It works. Support actually helps. It is what the consumer wants but maybe not the challenge the geek or frugal do-it-yourselfer desires. I'm betting Apple is much deeper and stronger than you currently perceive, especially among the general consumer.
It's The Ecosystem, Stupid: What The Ratings Agencies Said About Apple [View article]
The brilliance of Apple is addressing the consumer space ecosystem, ignored by individual device makers. On Monday, we received our two new iPhone 5s. Using wifi, the phone lines were transferred in seconds. Then, backing up our 4s to iTunes cloud and a restore to the 5, they were ready to use. No tears, panicked support calls or geek squads involved. iPods, tablets and TV all work perfectly with the new phones.
Some users will always be frugal or "tech macho", enjoying the challenge of lashing disparate systems together. Personally, after crawling down more computer rat holes than patience can endure, I'm glad to deal with a vendor whose products work reliably, seamlessly and are incredibly innovative. I suspect the vast majority of consumers feel likewise. My next project, after offing my cable supplier and converting to over the air and internet TV via Apple, is to dump my MSFT/HP laptops for Apple products. Can't wait.
Google Now, Not Google Glass, Is A Game-Changer [View article]
Excellent point. We all view the world through the prism of our own needs and experiences, forgetful of the very unique reality each individual experiences. I would assume similar communities of users would arise to take advantage of this available technology as two other commentators have already mentioned.
I love music on my pod and phone and have numerous apps on the phone for guitar. Most of my friends have neither but they do have other apps I find of little value. Search is the one common need for all users and I can visualize that common thread and the apps or customization applying to all these unique individual interests.
Maybe the old saw will change from, 'walk a mile in my shoes' to 'Now see the world through my Glass.'
Global PC shipments fell 13.9% Y/Y in Q1 to 76.9M units, per IDC. That surpasses Q4's 6.4% drop and Q3's 8.6% decline, and is steep even in light of IDC's recent commentary. IDC: "It seems clear that the Windows 8 (MSFT) launch not only didn’t provide a positive boost to the PC market, but appears to have slowed the market." H-P (HPQ) was the market's leader, but its share fell 200 bps Y/Y to 15.7%. #2 Lenovo (LNVGY.PK) saw its share rise 210 bps to 15.3%, and #3 Dell's rose 40 bps to 11.8%. Apple's (AAPL) U.S. share rose 60 bps to 10%, though U.S. Mac shipments fell 7.5% to 1.4M. [View news story]
A Johnson-Less J.C. Penney Is Still Dead In The Water [View article]
In contrast, we wandered down the mall to Sears. Lots of color, more selection and merchandise, better displays. Much more of a Kohl's look, except tidy and bright. More brand names with better pricing than Penney's. From our brief consumer survey, JCP was going no where with Johnson.
4 Signs Comcast Is Taking Over Planet Earth [View article]
Check out this company.
http://wapo.st/16K8ldJ
I've recently disconnected Verizon FIOS from our winter home and will do the same at our other, pulling the plug on our Comcast XfinityTriple Play. Between the two, we'll save close to $2000/year. The company above, Aereo, was not involved in this decision as I was able to obtain all my broadcast from a great little antenna called mohu. But I will definitely look at Aereo if reception is an issue or the number of channels increase by using Aereo.
Besides the mohu antenna, I've got an Apple TV box that provides access to youtube, netfilx, MLB, Vimeo and others for content. Apple TV has been extremely reliable, simple to use and easy to set up. Hooked it up to the existing TV's with a distribution amp and my router. Some cable channels will be missed such as cable news but it is inevitable that broadcast TV will also come to the internet.
Comcast? In one home, our HOA committed to VZ FIOS so we will only have access to the internet from VZ. In the other, we have a choice between ATT and Comcast so we can pick the more reliable, lower cost provider. My guess is that will be Comcast.
The internet and broadcast HDTV will severely disrupt Direct, Comcast, and Verizon over the next several years and there are plenty of articles on the web on how to disconnect. It will take time but it is inevitable and probably a major reason for the NBC acquisition.