Jimmy Schaeffler's blog

Pay TV Customer Service: It Demands Improvement

Perspective relative to the bigger and smaller views has always been a critical part of good business. And the U.S. TV business is no different.In the TV business, that sometimes means not only comparing yourself and your performance to others in your same class or industry subsector. It also means sometimes gauging yourself against others in other industries.

Pay TV Service vs. Others

Taking that assumption and moving it forward, the pay TV industry providers, such as Dish and DirecTV in the DBS world, Comcast, Time Warner Cable, Cox, Charter and Cablevision in the cable realm and Verizon FiOS and AT&T U-verse in the telco video space, all need to realize that although their relative performance serving customers may be satisfactory compared to one another, that same performance is probably not satisfactory for a pay TV manager comparing his/her services to those of other industries.

And that is the paradigm the best pay TV providers need to seek. The best pay TV providers will find some way to measure what they do against some greater standard of excellence.

It’s Us Versus the World

Thus, how much more effective and believable will it be one day when Dish can argue that it not only is at the top of its pay TV class of competitors, but, in a really impressive measure, the customer service it provides is better than that of the airlines, better than that of other utilities, and better than that of my local mechanic or plumber?

Or won’t a Comcast customer know that Comcast considers him or her THAT important, such that the top cable operator has gone out and found a way to balance what it does versus what other product and service providers do?

And if that is done consistently, won’t the Verizon subscriber then be that much more likely to take the time to call, and thus quickly eliminate the frustration of such a call, knowing that it will be likely handled quickly and the problem or concern corrected the first time, without having to escalate to a second, third or even more calls?

Most importantly, knowing that this is the measure of quality — and that customer service normally gets treated and done that well –  the likelihood of churn by that customer decreases incrementally. With reduced churn typically comes a plethora of financial measurements that represent the real business reason for being in pay TV in the first place.

New Standards To Get Us There

Thus, when, as has been the rule for decades, JD Power (or another survey company) delivers a quarterly comparison of customer service in the pay TV category, that needs to be shown not only relative to other pay TV providers, but as (or more), importantly, compared relative to other products and services. That way the best level of customer satisfaction is gauged among multiple categories of similar customer service.

For example, Cox could then show that in category one, i.e., it against its immediate peers, it scored a 7 on a scale of one to ten; but in the second measure, Cox would brag that it scored an 8 compared to the customer service consumers expect from those airlines, utilities, mechanics and plumbers.

More importantly, what that second measurement would do is effectively raise the bar for the entire industry, such that it no longer relies on other mediocre performances to try and measure what may not be a truly superior performance level.

Put another way, if you only measure yourself against a small, controlled pool of lesser performers, then you ultimately never really reach that higher level of performance. That means your customers and your company continue believing in the wrong measures, wrong standards, and wrong performances. And that is where we are in today’s pay TV industry.

End The Lie

It’s time to get out of the rut called current pay TV customer service measurement scheme. Indeed, it’s time to completely remeasure.

Doing that is not as easy as maintaining the status quo, but without it, today’s measurement of pay TV customer service remains a lie.

Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based The Carmel Group.

Pay TV Piracy: Avoiding Actionable Neglect (Or Worse)

Attacks by pirates on North American pay-TV vendors have been a serious problem for decades.

Yet there are steps and methods that pay TV operators — whether cable, telco, satellite and/or Internet-Over-The-Top (OTT) providers like Netflix, Best Buy, WalMart, and Hulu — can and must take to minimize the practice/threat of the old piracy industry adage, “What man makes, man can break.”

Historical Context

Cable once had a rather significant piracy problem, because analog systems were relatively easy for would-be or actual customers to hack into. That changes when a customer is upgraded from analog to digital because cable operators are able to control the problem of piracy within a digital system by use of two-way addressability with a landline connection.

DirecTV, during its first decade, also experienced a significant piracy problem, due in large measure to its use of off- the-shelf smart cards. Yet, once DirecTV in early 2004, under then incoming owners Rupert Murdoch and News Corp., switched to a customized integrated security chip its piracy problem was promptly eradicated. Indeed, the DirecTV piracy fix that, via traditional wisdom, was supposed to remain secure for roughly 18-24 months, has instead lasted more than six years and there are no signs of pending weakness.

Dish Network, on the other hand, has never had a custom card solution. It has always used the cheaper, yet traditionally harder to police, off-the-shelf smart cards. Up until about a year ago, Dish had been hacked to the tune of an estimated two million pirate users, according to figures gathered by The Carmel Group and its partner, Shelton & Associates.

In Canada, Dish Network’s cousin, Bell Satellite, has faced similar problems fighting piracy, in large measure because it utilizes EchoStar set-top boxes, and the same conditional access system provided by Nagravision. Indeed, Bell Satellite is currently being sued in Canadian federal courts by major cable operator Videotron, for having acted neglectfully (or worse) to permit piracy during the past decade or more (see footnote below).

OTT providers today are far less worried about piracy than they are about just making their new systems work, and acquiring new users. Yet, when their viewer numbers increase to the point where it makes sense for pirates to invest in finding ways to break those OTT systems, then the tables will turn. Those scenarios are likely at least a couple of years away for most OTT providers.

Where Piracy Stands Today

Because of its success transitioning from analog to digital, the cable industry in North America today generally remains quite secure from attacks upon its hundreds of systems on the continent, especially as the transition from analog to cable proceeds apace. This security is likely to continue, especially because, with more than 60 million U.S. pay TV subscribers, there is so much at stake for the cable operators.

DirecTV, as well, seems to have a solid handle on its piracy picture. However, the larger DirecTV becomes relative to subscribers and other financial measures, the more the DBS leader becomes a greater target (with greater rewards) for the successful hackers.

Dish and its Canadian relative to the north, Bell Satellite, are currently relatively secure. However, they more than digital-cable industry or DirecTV, remain more vulnerable because of the anti-piracy hardware and software they currently deploy.

As for the OTT providers, they likely will attract more than their fair share of hackers looking to find their ways into their systems. They will be attacked for no other reasons than that they are new systems that offer new routes to piracy. Indeed, many hackers will presume that because they are new, these video providers are less likely to have spent the time and the money to understand and properly deal with the threat of piracy.


Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based consultancy The Carmel Group.

(Footnote: The Carmel Group and Shelton & Associates have been retained by Videotron to represent it and its litigation partners as consulting and expert witnesses in the case, Videotron, TVA et al vs. Bell ExpressVu.)

GeoWeb Conference Highlights: A Place For Video?

Years ago, indeed, even decades, many looked at the Direct Broadcast Satellite industry, where they had found much of their early career development, and guessed that it would very likely be consolidating soon.

Based upon that assumption, I, too, figured that, to maintain my future in, and maintain my relevance to, the real industry I really believed in — which was the greater multichannel, pay TV industry — I would have to expand my knowledge to other areas that were similar to what DBS did.

Twenty years later, and still deploying that philosophy, Mixed Signals is addressing the recent GeoWeb conference in Vancouver. There, the interest centered on finding information about the delivery of video content to locations and to people based upon those locations, in particular through an interesting sub-area called Location Based Services (LBS).

What was once, when I began in this business more than 35 years ago, nothing more than a dream — of carrying data and video to devices that go wherever you go, and having that video relate to that location — is now in its infancy.

Geoweb, however, seems as a conference clearly more focused, for now, on delivering pure information based upon Geographical Information Services. GIS involves the merging of cartography, statistical analysis, and database technology. Yet, make no mistake, video, especially consumer entertainment video, is about ready to connect BIG TIME with GIS and, more directly, with its cousin, LBS, which involves a true emphasis on mobile devices.

In more detail, LBS involves identifying the location of a person or object, such as discovering the nearest banking cash machine or the whereabouts of a friend or employee. LBS can include, for example, parcel tracking and vehicle tracking services. Or LBS can include mobile commerce, when taking the form of coupons or advertising directed at customers based on their current location. And LBS can include personalized weather services and even location-based games. It is an example of continued and enhanced convergence in the telecommunications sector.

Five human traits, will drive this video-to-LBS transition: 1) to have fun; 2) to compete; 3) to stroke one’s ego; 4) to drive business; and 5) to motivate others.

If those in the business of transitioning video toward LBS can remember to include these “motivators,” just like any other avocation or occupation, they are more likely to be successful.

Yet, where it gets really interesting is when LBS and video information and entertainment find one another. And that is coming sooner than most in the pay TV industry fathom.

Sponsored at the top level by Google and a GIS company leader, Environmental Systems Research Institute, Inc., last month’s fourth annual version of the GeoWeb conference offered several hundred participants a chance to sample a good cross section of the future of this medium.

Interestingly, indeed ironically, the tag line or theme of the GeoWeb 2010 conference was, “Everything Is Connected.” Which brings this column full circle.

Look for more thoughts on this video-meets-LBS trend in the coming months.

Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based consultancy The Carmel Group.

Video Distribution and Mobile Apps: Telecom Trends and Changes

“Mixed Signals” has recently completed extensive trips to Denver and Los Angeles, with several meetings focused on the familiar topic of “future trends in telecom.”

These trends include 1) the future of video distribution, and 2) the future of various applications in (and into) the mobile services world.

Video Distribution

Because a lot of money rides on the choices, many business people, and many technically-oriented business people, are asking one of the few really important telecom questions going forward: Which distribution systems — whether satellite, mobile, or fiber, or something else — are going to carry which forms and how much of tomorrow’s content? This is a critical determinant, both on the consumer side and on the business-to-business (e.g., backhaul) side.

Interestingly and inevitably — although they have a remarkable 16-year record of progress, and have maintained remarkable staying power — the companies that deliver video signals directly to consumers by satellite are confronted by one huge obstacle as they look toward the future: What can they do to compete with the bundled services offered by mobile, cable, and telco challengers?

That is one reason why companies like Dish Network are buying up and trying to configure swaths across the nation of 700 Megahertz mobile spectrum for future deployment. In this vein, brilliant satellite and telecom engineers and professors, such as George Mason University’s D.K. Sachdev, note that: “Interactivity is becoming a must in practically every media. And while DBS systems are excellent for what they do today, they can compete more effectively in the future with some kind of return path. Thus, in the longer run, the distinction between DBS and broadband systems may narrow.”

What also is particularly fascinating in this arena are the plans by various cable, and telco, and related companies to deploy wires that deliver their own improved versions of direct-to-consumer and business-to-business content. Comcast is one version of that recent scenario.

What’s also interesting in this context is the competition between closed vs. open/over-the-top business models. Thus, for the average Netflix subscriber, she/he can consume on a variety of devices and platforms (assuming she/he has open Internet connectivity). Netflix doesn’t care who the customer buys her/his Internet access from. Yet, for the Comcast customer, she/he can only buy VOD services from Comcast.

And all this becomes extremely topical considering the latest rounds of net neutrality debates, especially those spurred on by the Google/Verizon announcement earlier this month.

Put shortly, because almost every American consumes so much content daily, and as more and more of that becomes video-based, more and more stakeholders will be determining how to improve, how to cash in on, and how to react to, that (r)evolution.

Mobile Apps (and More)

As the recent announcement by Netflix further indicates, it was just a matter of time before movies made a much more significant entre into the arena of hand-held mobile devices.

But, don’t expect it to stop there.

For example, maps and geography have traditionally shown themselves to be remarkably helpful and intriguing additions to searches for information. Notes Jack Dangermond, the president of prominent geographic software developer, ESRI, “If one picture is worth a thousand words, then one map is worth a million words.” (See, http://www.esri.com/about-esri/index.html).

The important thing in the context of “Mixed Signals” is that those maps and the geographical locations they represent will inevitably find their way into a collaboration with users and their video programming.

You can take that to the bank.

Indeed, currently some young, restless, and creative software applications developer is honing in now on an application that will jump start the actual alliance between video content and what I will, for today and this column, call Enhanced Mobile Entertainment. EME is an actual hybrid of the two somewhat similar terms, Locations Based Services and Geographical Information Systems, both of which deal with this rather complex and arcane industry subsector involving informational mapping. The term and acronym “EME” is the brainchild of Starz Encore senior vice president David Charmatz.

Another important example of EME and its future potential is what PBS is undertaking today with its service called “Dinosaur Train”, involving something PBS calls “geocaching”. This service further emphasizes the value of EME, specifically, to programmers. Many more programmers in the future are expected to introduce their customers to, and to build their businesses around, this new enhanced programming track.

Summary

By a long shot, never — repeat, never — before, have there been so many fascinating ways in which entertainment TV will develop.

And there have never before been such a plethora of new technical developments that will enhance the quality and volume of data and entertainment that future generations of consumers will consume.

Yet what is even more compelling, and even more worth banking on, is the idea that however good it is today, it will be quantums better over time. Again, I challenge anyone to dampen my enthusiasm for these results.

Look for more thoughts on video distribution and video-meets-(more)-data trends in the coming months. More specifically, expect a report on video-in-mobile-mapping and the EME sector in the weeks ahead.



Jimmy Schaeffler is chairman and CSO of the Carmel-by-the-Sea-based consultancy, The Carmel Group.

Apple, Google/YouTube, and Yahoo!: 3 "Communications" Companies That Won't Communicate

In too many parts of today’s telecom worlds, including those run by Silicon Valley’s top “communications” companies — specifically Apple, Google/YouTube, and Yahoo! — they just don’t seem to properly understand what they are really doing, i.e., communicating.Moreover, they certainly don’t understand the idea of doing that in a respectful, civil, and professional manner. In short, they repeatedly and consistently act uncaringly, uncivilly, and unprofessionally toward the media, and many others.

Who They Hurt and Why

Importantly, by treating the media rudely, they are, by extension, treating consumers and the public rudely. This is because for most of the public, and many of these companies’ business peers, the media is one of their few and foremost sources of objective communication with that company or industry subsector. Whenever a timely and professional return call or email might do the trick, they simply - either purposefully or negligently, but either way, certainly unprofessionally - do not return the call/email. Or when they do, the actual response is woefully rude and/or inadequate, as noted further below. By treating the media poorly and with a lack of respect, they are, as publicly-held companies, arguably violating their duties of transparency under federal and state securities laws

And why is this? Well, some would blame their arrogance, which is very likely true. Others would point to immaturity, because these are all relatively young companies. Still others would say it’s an abundance of secret-keeping. I would say it’s just a downright lack of caring, which equates to a solid lack of professionalism.

Ultimately, one has to think that they, themselves, as “communications” companies, suffer too, because they miss the dialogue and opportunities those dialogues represent.

Another Time, Another Profession

I used to practice law. Unfortunately, and again so ironically, I found too many lawyers who were poor communicators, and who often exhibited that illness by acting rudely. When I transitioned into the media and analyst communities, especially with highly paid “communications” departments, I was again surprised, because the last thing I expected was their lack of communication and rudeness.

Indeed, I’ve always been amazed when “communications” companies - and especially when the specialized “communications departments” of these communications companies — end up being such abysmal communicators. The irony simply astounds me.

Another Example: Bad Manners Spread

But, alas, modern telecom has apparently become like the practice of law and many other traditional professions; and unfortunately, I have another recent example to prove it. This one has to do with a media request I made Wednesday, Aug. 25, for an in-person interview a week later on Tuesday, Aug. 31, for two topics I was writing about.

The irony would almost be fun, or perhaps humorous, were it not so wasteful, illogical, and unprofessional. In many ways, one can’t help but to compare this trend to Communist Russia of 20+ years ago, where the idea of something not working (that should be working) was the very essence of everyday life.

As yet another recent embarrassing example of this pathetic consumer- and media-centered saga, the following series of communiqués and attempted communiqués took place with a company that may one day end up running the world’s - or at least the U.S.’s - video and TV businesses. We’ll call the two entities the parent, Company XYZ-A, and the child, XYZ-B.

Monday July 26: At the GeoWeb conference in Vancouver, I met and talked at length with a Company XYZ-A rep, and respectfully ended the conversation with a polite explanation of several unprofessional dealings I had had with Company XYZ-A’s communications, press, and PR departments. My hope was that my experiences might help to one day address and correct the problems of Company XYZ-A;

Wednesday, Aug. 25: I asked my new contact with Company XYZ-A for help getting to the right Company XYZ-A person. However, he could only tell me to write to an anonymous nobody at press@companyxyz.com, which I promptly did;

Thursday, Aug. 26: Having heard nothing back (and time running out on my Tuesday meeting request), I emailed and called the main Company XYZ-A telephone number, also leaving a message. By now, I had left three voicemail messages, all civil and polite, yet also somewhat urgent, within about a 36- to 48-hour time frame;

Friday Aug. 27: A pleasant, NYC-based, but very apologetic, young man, who shall also remain anonymous, said he represented Company XYZ-A and XYZ-B, had gotten one of my requests. He said that he would make sure that the two meetings were arranged, and in a timely manner. Indeed, I did hear back from XYZ-B, whose response was close to nothing, but was nonetheless wonderfully ironic. It’s written again below. I never did hear back from anyone at XYZ-A, the parent company;

Friday Aug. 27: A person calling himself the “Head of XYZ-B Communications” emailed the following obvious brush-off: “Hi Mr. Schaeffler: Thanks for your interest in [XYZ-B]. Unfortunately, we’re not able to accommodate your request to visit [XYZ-B] headquarters next Tuesday, August 31. Best, Head Communicator” (emphasis supplied). This was the entire email!;

Friday, Aug. 27: I responded a few minutes later: “[Head Communicator]: Thank you for getting back to me. Would it be possible to arrange another time? Thank you. Jimmy Schaeffler” And can you guess the next result…? “Head Communicator” has not at any time or in any manner chosen to respond to this communication;

Friday, Aug. 27: I called Company XYZ-A/B rep in NYC and requested his email address, which I never received;

Monday, Aug. 30: I again called Company XYZ-A/B rep in NYC and told him of XYZ-B’s “Head Communicator’s” response, which he said he could do nothing about. He said he would check back with Company XYZ-A, to again try to get a response for a meeting the next day, Tuesday. Needless to say, in keeping with my theme and overall message, I have not heard back from him or Company XYZ-A either.

Indeed, this last email response above from XYZ-B was simply the paradigm of the truly meager communications skills of XYZ-B through its “Head Communicator” [unbelievably, really, that’s the title XYZ-B supplies this person]. For here, we have XYZ-B’s “Head Communicator” communicating on the level of someone who doesn’t speak the same language as just about any recipient of such an email. He certainly doesn’t speak a language of business, which is a language of getting things done. Why? Well, for one, he waits two and a half days to answer a media inquiry that was clearly timely. Then, I have to ask here, “What does XYZ-B’s ‘Head Communicator’ think I am going to do in response to this rather rude brush off?” Could he not have, in professional response, have offered…”Can we try another day for the interview?” Or, “Can we try a telephone conversation instead?” Or, maybe even an extraordinary, “Call me later today, on Monday, and we can talk further about it?”

Brin’s Gift To America

In this case, I am so taken aback at the level of basic communication for Company XYZ-A and its subsidiary XYZ-B that I need to be reminded that the Company XYZ-A communications company I am actually not communicating with, calls itself Google. Perhaps Google’s (and child XYZ-B, AKA YouTube’s) press office is Sergei Brin’s Gift to Capitalist America. That gift is perhaps a little piece of ridiculously inefficient communist Russia. I surmise Mr. Brin might be doing this just to remind us all of how much “communication” irony — and frustration and contradiction — remains in the world today, despite the post-Cold War communications advances coming from services like Apple, Google/YouTube, and Yahoo!

Importantly, there are three more problems here:

Problem # 1: Google treats too many people, including most media I checked, just like this.

Problem # 2: In repeated dealings with Yahoo!, and especially with Apple, they also treat people the same way (whereas I have found during several decades that few other company’s communications departments, and few other company’s people, treat people in such a consistently pitiful manner).

Problem # 3: They can, they must, do better (or risk becoming irrelevant at the hands of those that can care, and can communicate).

Final Ratings

Finally, just to complete some of my own due diligence (and communication), as noted, I checked with several of my fellow media folks: Most said the order of incompetence/arrogance/immaturity/uncaring/unprofessionalism among the three companies I have had problems with should be as follows: # 1 Apple; # 2 Google/YouTube; and # 3 Yahoo!

From my experience, however, my personal “worst” rating is # 1 Google/YouTube; #2 Apple; and # 3 Yahoo!

Whatever the ranking, all three…clean up your act! C-o-m-m-u-n-i-c-a-t-e!

1 Please note that the some names of various participants have been withheld, in order, necessarily, to protect the mostly guilty, and the occasional innocent participant.

Jimmy Schaeffler, chairman and CSO of The Carmel Group, writes about the convergence of pay television and other industry developments.

Cal vs. Colorado: The Importance of Sports TV

A couple of decades ago when I worked for ABC Sports, I remember frequently visiting stadiums, arenas and press boxes as part of my production jobs.

It was pretty heady stuff, being 20-years-old and gaining easy access to what seemed a pretty glamorous and focal area in any forum, i.e., where the media centered and where the press guys did their most impressive jobs.

Thus, to be a quasi formal member of the media again, now writing a regular column for New Bay Media’s Multichannel News, not only meant a new chance to enter those venues again, but also to revisit the past a bit.

This occasion happened to add a particular bliss because it also meant a couple of additional plusses. For one, it involved my alma mater, the University of California at Berkeley. And it ended up that my Golden Bears not only played well on Sept. 11, but they did something they didn’t do very much when I was student in 1973-75 — they played with passion and blew out the University of Colorado at Boulder, 52-7.

Indeed, in its first two games this season, my Cal football team has scored 100+ points to its opponents’ 10 points. That’s some two-game season opening score!

But, alas, I forget that past. I allow my hubris to get the better of me, and I get ahead of myself, for which I must now make amends. That’s because, especially when they are ranked, my East SFO Bay Area football team inevitably tends to lose that ranking and end up with results in the middle of their PAC-10 league, and at best with a bowl game that not everyone has heard of or even watches. And that’s typically the point at which we Cal fans have to bring out our special medicine (but more on that in a paragraph or three below).

Upon arrival on a crystal sharp and perfect 75 degree day at the 87-year-old Memorial Stadium Stadium, in Strawberry Canyon on the east side of the Cal downtown Berkeley campus, I was forwarded to the elevator, where Cal’s media director, Herb Benenson, had posted a list of accredited media. My name was on it, no less!

Once into the upper levels of the football stadium, on the second from the top floor (just below the TV cameras, which see everything, both onto the field, and behind them to the entire San Francisco Bay Area, including the most impressive Golden Gate Bridge), as a newcomer, I was positioned on the far north end, next to a most impressive young man, named Addy Koiki. A 2004 graduate from Syracuse University and now a senior researcher for ESPN The Magazine, Addy was there on his own dime, practicing his live play-by-play broadcast of the game, so that he can one day land a big time job in TV land. (Note to every exec in TV land: Addy Koiki is ready.)

All along, while there writing of my experience, I did my level best to maintain my objectivity, as what I thought befitting of an “independent” member of the media. However, in all honesty, when Cal kept scoring and Colorado kept committing penalties, it was tough not to at least evince a slight smile or mild fist pump.

Interestingly and ironically enough, here we were trying to communicate, but I was told by a Cal rep in the press box that because AT&T hadn’t provisioned enough bandwidth in the stadium area, that I likely would not be able to use my cell phone to make a call out or receive one until 4:30 p.m., long after the game had mercifully ended for the Buffalos.

Cal is refurbishing its dilapidated Memorial Stadium as we speak. Completion is expected in 2012 and that should mean better press seats and better TV monitors, and possibly press food that doesn’t cease delivery before halftime. Indeed, Cal seems to finally and significantly appreciate the importance of big-time sports, big-time football, and big-time stadiums, with lots of media exposure to deliver tens of millions or more eyeballs, and hundreds of millions in TV dollars over the course of the decades ahead.

Perhaps just as importantly, through the media, and through these games, Cal (and every other college of its type across the nation), is mass (and personally) communicating with its alumni, students, teachers, administrators, and every fan or curiosity-seeker, as to the breadth and talent of its institution. And that, in the words of a familiar credit card ad, is “priceless.”

At the end of the game, I took a short walk back through the entire press area, and across the top deck I spoke of before. I was impressed with how quickly everyone left to move to their next assignment, whether that meant to travel downstairs to interview the teams, or into the truck that travels to the next arena six states away. Press is clearly more mobile today than it was when I started almost four decades ago in the early 1970s.

Ultimately, I consider myself pretty fortunate to have spent four hours in the UC Berkeley press box during a glorious near fall day in northern California, and to have updated myself about the look and feel of today’s live sports telecom and a 2010 press box.

Perhaps as importantly, I was able to also remind myself of the medicine I mentioned above, that crucial elixir that keeps Cal fans alive, year to year, decade to decade, i.e., with our perennial adage, “There’s always next year!”

Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based consultancy The Carmel Group.

When Telecom Decides, Refs Get It Right

My son, Willy, 28, is a recent MBA graduate from the University of Denver, and a 2004 graduate from the University of Arizona. When it comes to U of A Wildcats football, well, let’s just say he gets even more passionate.

Indeed, this weekend, his alma mater plays mine, the University of California at Berkeley, and if his team does as well as it did this past Saturday against the University of Iowa, well, let’s just say I may not stay in the living room to watch the entire game. (My Cal lost last Saturday, to unranked Nevada, by an embarrassing sum.)

At that Arizona-Iowa game this past Saturday evening, which was nationally telecast on ESPN, there was one play that brought home, in a very positive and quality-of-life-improving kind of way, the true nature of TV sports broadcasts. I thought it worth noting for this column, “Mixed Signals,” because it so easily gets overlooked and taken for granted.

The typical national sports telecast these days involves some six to 10 cameras, spread about the stadium. Thus, especially on the field and during play, the action is looked at from as many as a half-dozen (or more) points of view. That is a lot of angles — even more than the referees on the field — that TV is able to provide to the play-by-play.

On Saturday night, at about the 10:45 mark in the third quarter, an Arizona special teams player, named Wright, fielded a punt and began running. At one point, Wright was tackled and fell, yet it was unclear whether he was properly tackled or down.

The refs on the field had a tough time deciding, based upon their limited numbers, their limited angles, and their limited human abilities (which are universally limited human abilities, not just those of the Iowa-AX officials reffing this game).

Unable to make a clear decision, the refs turned, of course, to the video evidence. Thank goodness.

In this instance, a low video angle showed that Wright’s hand had, indeed, touched the ground, while it was wrapped around the football. Indeed, the camera showed it remarkably clearly, but it is less likely that the refs saw it at as well as  angle the camera afforded (or that they saw it at all).

And based upon what the camera depicted, Wright was down where his hand touched the ground. The play ended there, and not a bunch of unfair yards down the field.

Thus, with the aid of what sports video affionados call today, “indisputable video evidence,” the game went on and the refs got it right. Importantly, no one could complain after the fact that there was anything unfair about the call.

Indeed, it is difficult to see the perspective of those purists who say that in an instance like this, the traditional view of “what the ref thinks he saw and calls is the law” should govern. And that holds for just about any sports, and a lot of other human endeavors.

Put another way, short of having to worry about a highly unlikely instantly doctored video, what the video shows, the video shows. In this instance, it not only got the call right, but it made the telecast better for it; and better telecasts, whether we admit it or not, make for better quality of life, which is a long winded way of just saying, “When Telecom Decides, Refs (Usually) Get It Right.”

Cameras and video can capture action that human eyes and human brains can’t. And if we are smart enough to use that properly, we can better the game’s ultimate result, for the fans, the teams, the refs, and the scorebooks.

To carry things further, this is one of those reasons why sometimes seeing the game live on TV can be even better than being there in person, because not too many people in that stadium were likely to have caught that sleight of hand by Wright, as he scraped the ground for a second or less.

And that live aspect is why — for many years, if not decades, to come — those rights-holders and distributors that control those live sports events (such as sports leagues and their cable, telco, and satellite operators) will have a lock on a huge number of viewers, and an audience who will pay for that privilege.

Meanwhile, wish us luck this weekend, because my Golden Bears will need all they can get, especially playing at the same home field, in Tucson, where Arizona squarely and fairly beat then ninth-ranked Iowa, 34-27, on Sept. 18.

Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based consultancy The Carmel Group.

A Place With No Telecom

In late August, I had the great pleasure of taking my annual weekend outing to the Sierra Nevada Mountains with my now grown children. We cooked, hiked, swam and took a lot of photos — the typical stuff of a mountain vacation.

But what caught me this time, more than ever, was we did not telecom (I can’t believe I’m using a derivative of the word “communicate” as a verb, but it fits here). As a result, we did a better job communicating (as ironic as that may seem).

We go to a place called Mineral King. Access is limited because of a rather treacherous 25-mile road, in and out. But importantly, toward the goal of having a great weekend with my kids, access is limited because there is no cell phone or Internet service. Effectively, the wires are dead (or at least as far as they are concerned…there is a public phone out near the parking area, but I don’t remind them of that…as if they’d actually deign or stoop or know how to use such an archaic device ).

Thus, for two days, my offspring neither talked to their friends, texted their buddies, tweeted their allies, conducted or committed anything telecom. In fact, the only time I saw one of them pick up their device was to check the time, and when another set his alarm.

Indeed, it was the weekend without that typical telecom interruption. And that was very positive.

It was almost comical on the way up. As we got closer and closer to a point near Three Rivers, where cell coverage will be lost, they battled against those time and geographical location boundaries, knowing that if they didn’t get their calls or tweets or texts sent out by that time and location Friday eve, they would have had to wait until late in the weekend before they could dialogue again.

And that also means no news and no sports. That said, it’s a good thing we go before the college football and NFL seasons begin, because my boys would be breaking out in hives were it a week or so later and they were to miss their fantasy football leagues and the like.

When I asked them what it was like for them to be without telecom for the almost 48 hours that weekend, one noted, “For the first few hours, it is stressful to get out of the habit, but when we start doing chores around the cabin and hiking, then it can be very relaxing.” Said the older one: “It forces us to take our minds off of waiting for important emails. And that’s actually very liberating…for a time.”

Years from now, if companies like Ico (http://www.ico.com/)and Terrestar (http://www.terrestar.com/) have their hoped-for input, my children will be able someday to stop at the general store in Silver City, as we drive into Mineral King, and pick up a combination cellular-satellite hand device, that will give them that all-important coverage in the mountains. But, frankly, I’m pretty sure that level of use probably won’t be theirs, but rather that of my grandchildren, more than one decade from today.

Meanwhile, can I recommend for a weekend or two of one’s short life: get your kids to the mountains, and get them there without telecom. As one of mine said, “It can be ‘very liberating.’ ”

And as I would say, “It can be a great way to really c-o-m-m-u-n-i-c-a-t-e!”

Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based consultancy The Carmel Group.

Cable, Telco, and Satellite Pay-TV: Why Can't We All Just Get Along?

Over the years, it has always been nearly impossible to interest anyone from the large competitive telephony or cable providers to speak at DBS conferences.

Indeed, a careful review of the affiliations stated by the typical attendee suggested that few, if any, telco and/or cable folks were in those rooms, even as observers. I always found this odd. After all, how’s that old adage go: Know your friends well, your enemies better?

Cable vs. DBS vs. Telco

Today, it remains extremely difficult, if not impossible, to get someone from Comcast or Time Warner Cable to give a keynote or even join a panel discussion at a so-called “satellite” conference. The same is true, typically, for a “telephony” conference: few, if any, cable or satellite executives attend. For their part, DBS officials won’t speak at so-called “cable” or “telco” conferences, either.

Why No Sling?

Using another example of this oddity, it is strange to watch the reluctance of big cable operators nationwide when it comes to EchoStar and its video place-shifting device called Sling. EchoStar has built this feature into new set-top boxes that also involve remarkable DVR and other time-shifting technology.

Yet, despite “this is the future” capability, the U.S. cable industry has generally ignored the best interests of its shareholders, as well as of its actual and would-be subscribers, by not doing a single significant place-shifting set-top box deal with EchoStar.

Admittedly, sister company Dish Network gained few points among cable guys by once labeling cable a literal and figurative “pig” in national ads. Also, there are technical compatibility issues involving millions of set-top boxes. Nonetheless, there comes a clear point in business where a great businessman gets past the emotion and reacts according to good business sense, and that time is surely near (or nearer?), at least for the nation’s larger cable MSOs. Sling is just that good.

Ending The Balkanization

Ultimately, the real question here is: Does this “balkanization” between cable, telco, and satellite pay TV providers really make sense, in the ever-more-converged (and converging) world of modern-day pay TV services and products? The answer is a clear “no,” and I challenge someone, anyone, to tell me otherwise.

One of the reasons these sectors’ own forms of “narrowband” and “walled gardens” don’t make sense is because of the actual and forthcoming alliances that these providers will inevitably and eventually enter into. Indeed, those alliances will proliferate, again, eventually and inevitably. Efficiencies of finance, economics, marketing, personnel, and most other business aspects will demand such partnerships.

Which is not to say these players ever reach the point where they have to worry about anti-competitive complaints from the government, but rather, only, that at certain junctures to not seek these efficiencies (e.g., to all merge together to universally fight piracy) makes no sense at all.

More Alliances Coming

Another reason is that these pay-TV players are each becoming more and more similar. Thus, the financial, distribution and consumer networks deserve to see them compete, on stage, and in the greater marketplace. This has to happen so observers can readily make those comparisons, and the best can then rise to the top.

A few examples are emerging. For one, Comcast has become an ally alongside DirecTV and Dish in the wireless provider, Clearwire. And several small cable operators are now using EchoStar’s IPTV capabilities to deliver upgraded HD video capacities that they otherwise couldn’t have.

Another rather rare, but finally happening, example involves DirecTV and NCC Media. A recent press release by the two includes the subtitle, “Innovative venture between cable and satellite companies will greatly benefit spot TV advertisers.”

A Next Important Step?

So where does this all end up? Well, suffice it to say telecom conference organizers should be trying hard to bring together super panels, say, for example, at CES or at NAB, involving the top players from Comcast (the largest MSO), DirecTV (the largest DBS provider), and from Verizon (the most dominant telco), on the same stage, at the same time.

After all, isn’t it time to ask the question once asked by the infamous Rodney King: Why can’t we all just get along? Answered shortly: we can, we should, and we will. That said, watch for these sessions to occur, as they are inevitable. We’ll all learn a lot, and each industry sector, its shareholders, and subscribers, will all be the better for it.

Jimmy Schaeffler is chairman and CSO of Carmel-by-the-Sea-based The Carmel Group

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