Does Anyone Want to Own DVDs Anymore?

Lately, I've found myself staring irritatingly at the hundreds of CDs and DVDs that occupy numerous shelves in my living room. How can we get rid of all this clutter without investing in an uber-expensive media server? Sure, there are Media Center PCs that can store all this content, but that would mean having to sit down and rip one DVD after another, repeatedly, for hours on end. Even then, what happens if the system crashes? Sure, there's always back-up, and even a back-up for the back-up. But I wonder: are people really interested in owning all of this content, namely movies, or do we just want to enjoy it, then chuck it?

Case in point: popular U.S. video rental company Netflix has just announced that it will get out of the previously-viewed DVD sale market and focus on rentals and streaming video. Despite how much consumers might be upset at the change, it makes perfect sense. Why do I need to own a physical DVD movie? There are very few titles that are worth watching more than once, and often times when I have watched a movie for a second or third time, it's because it happened to have been broadcast on cable TV. If there's a particular movie that I want to watch at home on-the-fly, I'll grab it on-demand.

As I write this, I hear my former self yelling "hypocrit" at the top of her lungs. I used to be the one that argued passionately in favour of previously-viewed DVDs. Why would I pay $5 to rent a movie when I can just own it for a few bucks more? I would say to people. And there certainly are people who appreciate the full DVD experience, including the extra features and interviews, and love to admire the beautifully-created cover artwork. But now, looking at the hundreds of colourful cases unnecessarily taking up so much space at home, I don't quite feel the same way.

But before you're quick to call me out on predicting the end to a profitable after-theatre movie industry, that's not what I'm implying at all. Rather, the money will funnel itself through new channels. This could mean a cut of pay-per-view profits or specialty TV channels subscriptions, and probably the most lucrative option going forward: involvement in the streaming movie business. And hey, perhaps Blu-ray will take over as the only viable physical DVD format worthy of investing in and "collecting" because of its premium video and audio quality.

This, of course, is great news for cable/satellite TV providers and online distribution companies; not so good for DVD makers and distributors. But who knows: maybe in future, everyone will have a stab at the TV airwaves, and you'll be able to tap into services not from just one cable or satellite provider, but from a host of them, operating somewhat independently of one another. Sure, the idea might seem far-fetched to some; not to mention potentially confusing (and expensive!) for the customer. But if it means I can watch what I want, when I want, in high-definition quality, and take back a big portion of space in my living room that's now otherwise occupied, then I'm game.

Blockbuster Won't Give in; Bids for Circuit City

For years, it seemed like the writing was on the wall for movie rental outlets like Blockbuster. First, there was on-demand TV through cable services that essentially let you order a movie right from your couch. Then, there was nifty inventions like TiVo that made it really easy to record a movie at 4 a.m., then watch it whenever you felt like it. As if that weren't enough to put pressure on the traditional DVD rental business, out came Netflix, a company that let you order a movie online, and they'd deliver it right to your door!

Lately, however, it seems like Blockbuster is pulling out all the stops to ensure that the company isn't left in the dust as technology continues to move forward. We've already seen what happened to music retailers like Music World and Sam The Record Man that refused to change their business plans to keep up with the changing ways of music distribution. Blockbuster obviously wants no part in that when it comes to its business, and is making sure the company stays on the cusp of development.

The strangest move came today, when Blockbuster Inc. put in a bid to buy U.S. consumer electronics retailer Circuit City. Huh? You'd think that, if anything, it would be the other way around! But Blockbuster is offering more than US$1-billion for the mammoth CE retailer, stating that a combined company (worth approx. US$18-billion) would be "uniquely positioned to capitalize on the growing convergence of media content and electronic devices." Could we see Blockbuster stores now not only renting DVDs and video games, but also the devices needed to watch or play them? Or perhaps creating promotions whereby you receive a free movie rental with the purchase of a Blu-ray player from Circuit City? It might even be more than that.

Reports all over the 'net claim that Blockbuster is planning to launch its own set-top box that would allows users to stream movies to a connected TV, a la Apple TV. Content would reportedly come from Movielink's massive library, a company that Blockbuster purchased last year.

It looks like Blockbuster has finally bitten the bullet and realized that it needs to make bold moves in order to remain competitive, and not be eaten up by all the new players. In addition to its attempt to buy Circuit City and the rumoured set-top box device, Blockbuster has also been ramping up its Blu-ray DVD offerings to keep in line with consumer demands. It's even putting dedicated Blu-ray kiosks in store, demonstrating the quality of Blu-ray versus standard DVD.

Most people seem puzzled by Blockbuster's moves, but it's better than sitting back and watching other companies take over an area where you were once king. Kudos to Blockbuster for taking steps to improve, and for attempting to find interesting synergies that will add further value to its business. Sure, a consumer electronics retailer is very different from a DVD rental company, as many reports have pointed out. But maybe there's more synergy between the two than we realize. If, as I've argued many times, the content drives the hardware, it makes perfect sense for Blockbuster to grab a piece of the hardware pie to complement its diverse software offerings.

U.S. Cable Subscribers Down

A recent In-Stat study discovered that the number of U.S. households subscribed to cable TV service is down, even though worldwide, cable TV subscriber numbers are up. In 2007, there were just under 68 million U.S. households with cable TV. This sounds like a lot (and it is), but it's half a million fewer than the year prior. Why have numbers dropped so significantly?

The obvious reason is that many customers are gravitating toward other means of getting their TV fix, like satellite, DVDs, and even the Internet. I know one journalist who doesn't subscribe to cable: he simply waits until a hot TV program is released to DVD, buys each season's set, and watches the episodes at his convenience. In the end, it's cheaper, and there are no pesky commercials to skip through. But on the flip side, you lose the feeling of anticipation in having to wait an entire week to find out "what happens next". If everyone followed this theory 20 years ago, would anyone have really been so anxious to find out who killed J.R.?

Worldwide, however, the news about cable TV is good. In-Stat reports that 91 million cable TV households are now digital, which is up 41% from last year. Most of these are in China. In the cable TV market overall, China also leads, followed by the U.S. and then India.

Hopefully an end to the Writer's Guild strike is in sight to provide a more compelling reason for the U.S. public to not only jump on the cable TV bandwagon, but the TV bandwagon period.

The TV is On, But is Anyone Watching? How the Writer's Strike Could Effect the CE Industry

As any avid TV watcher would know, the first Hollywood Writer's Guild strike in 20 years has been plaguing us for months. As writers of primetime TV sitcoms, daytime talk shows, and the like flex their pen-and-paper muscles, TV crew members of every kind are suffering the consequences. But at the same time, an arguably lesser, but potentially very important, effect of the strike is happening behind the scenes: consumers are getting frustrated and turning to other means of getting their video fix.

Sure, there are still those who are watching the "tube". But people who typically aren't channel surfers find themselves clicking away trying to find something that isn't a repeat of an old episode (often ending with the "power" button); while faithful sitcom fans are visiting network Websites, anxious to find out when a new episode will air. At the same time, networks are frantically working on ways to fill empty time slots (I recently heard that CBS acquired the rights to simulcast popular Showtime program Dexter); while the Writer's Guild is keeping tabs, doing things like refusing to let the Golden Globe awards air this past weekend.

Needless to say, the boxing gloves are definitely out, and it looks like neither side is willing to go down without a fight. Many journalists have expressed the opinion that this strike will change the face of TV forever. But how will it change the consumer electronics industry?

When it comes down to it, many of the biggest advances in consumer technology are involved with video of some kind: flat-panel TVs, DVD players (of both the high-def and standard kind), satellite and cable TV set-top boxes, and so on. Without valuable TV content to consume, will such devices become of less importance to the consumer? Or will we look more to alternative ways of enjoying moving images?

Already, we're seeing the popularity of obtaining video content from the Web and watching it on a high-def monitor, or even porting it to a large-screen TV or DVD disc for playback. Apple just announced at its MacWorld Conference in California that it would begin offering movie "rentals" through its iTunes online download service. Many of the latest camcorders can record in high-def (mainly 720p) then let you watch the content in its full resolution on a compatible flat-panel TV. In fact, Samsung announced a camcorder at CES that would allow customers to wirelessly transmit video they just shot to a flat-panel TV! And let's not forget video gaming, which has grown to a billion-dollar industry.

Therefore, the question the industry, and many of my colleagues, pose is: do we even need or desire TV anymore? Of course, even those who aren't couch potatoes have a program or two they enjoy, whether it be a reality show guilty pleasure, crime time drama, or even an educational show for the kids. If we were stripped of all the cable/satellite TV goodness, would we stop watching entirely, and see CE sales go down? Or would we just fill our 60" screens with our own content (home movies, movie studio films, and the like), watch sales of devices like high-def DVD players, DVD discs, Internet streaming devices, and camcorders skyrocket, and call it a day?

Personally, I watch TV every day, and the majority of my favourite programs tend to be on subscription networks like Showtime and HBO, which aren't affected by the strike. As for the programs that are, I've somehow managed to get by without them, as I'm sure many have. Needless to say, movies have become a weekly staple in my household: we've watched more DVDs and on-demand flicks over the past two months than in the past year!

One thing's for sure: whenever this strike ends (and hopefully, for the interest of all parties involved, it will be soon), we'll all feel the aftershock of the storm.

The Uninformed Person's Guide to Getting HDTV (Apparently, We Still Need This!)

A Canadian industry member recently told me that retailers are experiencing an increase in the returns of HDTVs. This reportedly isn't because flat-panel displays aren't up to snuff, or content isn't available: in fact, HDTVs are looking the best they ever have, and there's more HD content available than ever! The problem is that apparently, the average consumer still doesn't understand how to get HD content. Are you for real? I had to ask. Unfortunately, he was. Consumers, he said, are disappointed with the image quality when they plug in their units, and frustrated when they find out they aren't instantly getting HD.

That said, let's go through the basic "idiot's guide to getting HDTV". Step 1: Buy a high-def flat-panel TV. It will be labeled 720p, 1080i, or 1080p; or it should just say high-def on the spec card in the store. To make your life easy, just ask an available salesperson to help you. You're one step closer. If you plug this TV into your regular cable or satellite box, you'll get, you guessed it, regular cable or satellite. A high-def image will not magically appear. I know, it sounds like a fantastic idea - why not? We'll get to that point at some time in the future, I'm sure. For now, HD is a step up from standard TV, so logically, it will require additional equipment to obtain.

Step 2: call your cable/satellite service provider and ask for a high-definition set-top box. Most will have more than one choice, one of which is likely a PVR (Personal Video Recorder) that will let you record TV content right onto its hard drive, which you can then view any time you like. I'd highly recommend one of these if you're a heavy TV watcher; or often not home or available when your favourite shows are on. But that's besides the point. Once you know which HD box you want, order it. Then replace your old, standard definition box with this one (usually, the provider will send a technician to swap them out for you).

Step 3: As much as you'd like, having the box and the TV still doesn't instantly get you high-def: you need to subscribe to access it. Call your service provider, or visit its Website, and find a channel package that includes that provider's available high-definition channels. Basic cable won't cut it. Remember, even when you order high-def, only certain networks and certain programming are currently available in HD. For instance, Rogers Cable has about 36 available HD channels. Bell ExpressVu has more than 50. Some providers might give you a few of these for free upon purchase/rental of an HD set-top box. But in the end, you'll need to subscribe to an upgraded channel package to get all the ones you want permanently added to your daily listings.

Once these three steps have been followed, you're all set. Now you can get HDTV. All of the HD channels should be lumped together in your on-screen guide, and "HD" should be somewhere in the name so you know which ones they are. If you're not sure, check online or in the brochure you likely received with purchase/rental, and you should be able to find everything you need to know.

The whole process sounds more difficult than it really is. It's a simple concept that can be likened to buying a cup of coffee. You can buy the cup and pour the java in, but that doesn't make it a latte. If you want a latte, you have to order a latte. Starbucks, Second Cup, or wherever you go will mix up the glorious concoction for you, and charge you accordingly. But you can't order a coffee and expect a latte; despite the fact that all the basic ingredients are there.

It's unfortunate to know that salespeople still need to explain this. But if you want to ensure there are no product returns, I'd suggest explaining these three steps to your customer before he walks out the door with his fancy new TV. If it turns out he's an informed customer, laugh it off and tell him this story. If he's an uninformed one, you may have just saved yourself (and him!) a lot of time and money.

Rogers Gives You Karaoke on Demand, Sales of Ear Plugs Projected to Rise

Now I've seen it all. Rogers Cable is offering a Karaoke on Demand service to all PersonalTV customers that have a digital set-top box in Ontario, New Brunswick, and Newfoundland. Wanna-be crooners and the tone-def-in-denial can choose from 600 tunes, available at channel 100, then sing to their heart's desire.

All jokes aside, this is a great idea for parties, contestants auditioning for reality TV singing competitions like Canadian Idol (why not practice at home?), or those days home alone when you get an inkling to grab the hairbush and belt out a tune. What, no one else does that?

Rogers says that new songs, ranging from current pop hits, to oldies, country, hip hop, and classic rock, will be added monthly.

As if this announcement in itself doesn't already have people cringing at the hours of torture they may soon have to endure by partners doing their best Shania or Mariah impersonation, or teens and friends flooding the living room with screeching vocals, Rogers is adding fuel to the fire. The first 500 new customers to order a digital cable box and sign-up at www.rogers.com/karaoke will receive a karaoke microphone. The hairbrush can return to its rightful position in the bathroom.

Retailers: get your ear plugs out. I've got a strange feeling you'll see a spike in sales verrry soon.

[Photo: If you're anxious to know what tunes are available, the Rogers Website shows a comprehensive list, including such popular karaoke hits as Achy Breaky Heart, Life is a Highway, and Respect.]