Showing posts with label Change. Show all posts
Showing posts with label Change. Show all posts

Tuesday, 26 July 2011

Netflix: Price change not about killing DVDs

With a recent change to its pricing plans that separated streaming and DVD-by-mail subscriptions, there’s been a lot of speculation that Netflix was seeking to kill the DVD-by-mail offering. But on the company’s second quarter earnings call, Netflix CEO Reed Hastings said that the decision was made in an effort to prolong a side of the business that wasn’t getting enough attention.

Hastings said today that he thinks the DVD-by-mail offering will be able to last a long time, by generating satisfaction for a number of users that aren’t as interested in its streaming service. The CEO gave the example of rural customers who don’t have the available bandwidth to take advantage of its streaming service, but were paying $2 more to get DVDs. By separating that plan out, the company will be able to target existing customers that fit that type of demographic.

“What we wanted to do is make clear that DVD has a longer and bigger life than some people think,” Hastings said.

The stated goal is to shrink the DVD business slowly as opposed to shrinking it rapidly — which is what would have happened if the company continued to spend most of its cash and resources on growing its streaming business. By breaking the DVD operations into a separate business unit, Netflix will be able to separate out profits and losses of the distinct businesses and invest in each appropriately.

By doing so, the company will also have a dedicated team that is focused on DVDs and improving the customer experience of DVD users. Of late, much of its investment has been focused on streaming, leaving heavy DVD users out in the cold. Take, for instance, a recent redesign that was built around making it faster and easier to stream movies through the service. With resources dedicated solely to DVD, Hastings said that the company is working on a number of initiatives it plans to launch in the fourth quarter aimed at improving the DVD service.

Furthermore, the company will get back to marketing DVDs, which have largely taken a backseat to its streaming offering. Over the past several years, Netflix has focused on courting new users with the promise of its $7.99 streaming-only plan, a strategy was largely working. In recent quarters, Netflix has aggressively grown its customer base, with about 75 percent of new subscribers in the second quarter signing up for the streaming-only plan. But interest in its DVD plans has largely gone stagnant as a result.

Most saw the price change as a way for Netflix to force subscribers to choose one plan or the other — with the expectation that most would pick streaming over DVD — but the company appears bullish on the DVD business remaining viable, at least for some time. At the end of the third quarter, Netflix expects to have 25 million subscribers in the U.S., with 15 million remaining DVD-by-mail customers. While DVD shipments have most likely peaked, Netflix still expects 60 percent of its customers to pay at least $7.99 for DVD rentals by the end of this quarter.

Hastings once said that he saw Netflix as a streaming company that also happened to offer DVDs by mail. If we take him at his word today, the move to separate DVDs from streaming is a bit of a change in strategy for the company. As opposed to having its operating margins squeezed as a $2 add-on to the streaming offering, breaking out DVDs will effectively enable the company to maximize its investment in a business that already has a large user base and a bit of legacy infrastructure built out to support it.

Image courtesy of Flickr user Scott Feldstein

Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.

window.fbAsyncInit = function() {FB.init({appId: 180650338636285, status: true, cookie: true, xfbml: true});FB.api({method: 'links.getStats',urls: 'http://gigaom.com/video/netflix-price-change-dvds/'},function(response) {jQuery('#react-fb-count-button').html(response[0].commentsbox_count);});FB.Event.subscribe('comment.create', function(response) {var ajaxurl = 'http://gigaom.com/wp-admin/admin-ajax.php?action=new_fb_comment&post_id=';jQuery.get(ajaxurl + 382710);});};var e = document.createElement('script');e.type = 'text/javascript';e.src = document.location.protocol + '//connect.facebook.net/en_US/all.js';e.async = true;document.getElementById('fb-root').appendChild(e);

var _comscore = _comscore || []; _comscore.push({ c1: "2", c2: "6036014" }); (function() { var s = document.createElement("script"), el = document.getElementsByTagName("script")[0]; s.async = true; s.src = (document.location.protocol == "https:" ? "https://sb" : "http://b") + ".scorecardresearch.com/beacon.js"; el.parentNode.insertBefore(s, el); })();

Click to log in with: Not you? Remember me Submitting comment...
;(function($){$.fn.trackClick = function(){// track the clicktry {_gaq.push(['_trackEvent', this.parents('[id!=""]:first').get(0).id, 'clicked', (this.text() || this.children('img:first').attr('alt'))]);}catch (err) {}// wait a moment for the tracking to process, then follow the linksetTimeout('document.location = "' + $(this).attr('href') + '"', 200);};$('#brand-explorer a, #navigation a, .widget-wrap a').click(function () {$(this).trackClick();return false;}); })(jQuery);

View the original article here


This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Friday, 22 July 2011

Small Business Servers - A Need For Change


Many small businesses don't have an IT department or anyone experienced enough to handle even basic IT tasks like backup, system restoration, patching or updates. In most cases, they rely on a local business partner (typically an IT consultant or local IT support company) to handle these tasks.

Unfortunately, many small business IT solutions on the market today exacerbate the situation. Their complexity...


requires the need for ever more powerful hardware
results in frequent system crashes and downtime for upgrades
compounds security problems
necessitates frequent system restorations
increases the investment in resource to upgrade systems and fix problems

Whats needed is a new generation of 'small business servers' that deliver all of the essential IT & technology services for smaller businesses but without the usual costs or hassle.

Challenges in supporting micro and small business customers

To stay in business small businesses need help with basic IT chores, which are becoming more mission critical than ever as they grow more time consuming to deliver.

Just look at business continuity and disaster recovery in small businesses. A study by Gartner found that only one third of small businesses surveyed said they were prepared for a disaster within the next 12 months.

In other words two thirds of all small businesses are not prepared for a disaster or protected. The reason, in most cases, is that small businesses don't have the IT skills of solutions to perform common tasks like backing up critical data or developing a way to restore systems that crash or become damaged when a pipe breaks or there is a fire, flood or other disaster.

Small businesses also need help just backing up and restoring files when someone accidentally deletes them. Such deletions in small businesses are quite common.

Whilst everyone understands the need for data to be backed up, what many don't realise is how expensive and difficult it actually is with traditional solutions. In fact, the traditional approach to backing up data is a time consuming and resource intensive task. The normal procedure requires tapes to be rotated, in the right order and taken off site for secure storage.

Plug In, Switch on & Start Working

Security within smaller businesses is also an issue. Hackers today are after confidential information about businesses and their clients to commit fraud and identify theft. They employ increasingly sophisticated attacks that may use socially engineered phishing email messages. These spam messages are designed to fool even savvy computer users in to thinking they are from legitimate sources. An unsuspecting user might click on malicious executable file or URL link to a poisoned web site and automatically download malicious software.

In their pursuits hackers increasingly exploit new vulnerabilities in applications and Windows operating systems as a means of infecting computers. To battle this problem, software vendors issue frequent system updates and security patches that must be installed quickly to minimize exposure to each new threat.

In 2008, Microsoft alone issues 43 critical, 24 important and two moderate fixes, according to security experts. The previous year saw a similar amount, including 49 critical, 23 important and five moderate updates. Other application and browser vendors had numerous updates as well.

Again, many small businesses don't have the IT expertise to track all of these patches or the time to install them. Beyond security patches, there are typically many operating system updates that must also be applied. Such installations are often time consuming.

Unfortunately many of these fixes incur downtime, which no business likes. For example, in many situations, a business must first test a patch or upgrade to be sure it does not cause problems. If the test goes well, planning must take place to be sure the changes are made at a time that least inconveniences its workers. Again, many businesses are looking for help with these matters from their business partners. The challenge for the business partner is that all of these tasks (testing, planning, applying etc.) are all time and labour intensive.

Problems with traditional Small Business Server Solutions

Even the smallest business today requires certain basic capabilities. Workers need to share files and printers. Additionally, their data must be protected and their systems must be secure.

The burden on the business partner to provide these services typically requires the use of multiple solutions from different vendors. The mix often includes a server OS and file system from one vendor, backup software from another, and security products including firewall, anti-virus, anti-spyware and anti-spam software etc from even more vendors.

Managing such a mix can add to a business partner's workload. Each product must be managed with its own administrative system, and each must be updated on its own. There might also be conflicts when trying to get different vendors products to work together.

Additionally supporting such a mix of applications might introduce security issues. For example, if a firewall and anti-spam solution are not in sync with regard to the level of protection each affords, one might work in detriment of the other.

The end result when using multiple solutions is that the time investment per client grows as the complexity increases. It also increases the time investment a business partner must make in learning/training. Their staff must be knowledgeable about many discreet products in order to support their small business client's workers.

Compounding matters, the traditional choices have had their problems. Solutions designed specifically for smaller businesses often could not scale to support a business growth. For this reason, many of the solutions commonly used are not designed specifically for small businesses. But this only adds to the management burden placed on the business partner because they must customize or scale down these solutions to meet the needs of small businesses.

Additionally, such solutions are often bloated with features not needed in smaller businesses. For instance, directory services might be overkill for a company with fewer than twenty people. Yet, its administration is as time consuming for twenty as it is for one hundred or more.

Similarly, an enterprise solution might be so narrow focused that it lacks key features for small business, thus requiring a patch work of solutions to meet a business's basic needs. For instance, a firewall might need a third party anti-spam or anti-virus solution to provide more complete protection.

In either case, trying to force fit an enterprise solution into a small business environment can add to the management workload.

What's needed: Desirable characteristics?

With these concerns in mind, there is obviously a need for an alternative to the enterprise patchwork solutions that are currently being cobbled together and used in small business today.

Any solution that addresses these pain points must be designed specifically for small businesses and the business partners who serve them. It must enable customers do email, create and share documents, centrally manage files, store and secure business data, control access to information, connect offices, employees and partners whilst protecting their network and systems from unwanted disruptions and intrusions.

It should be less complex so that it requires less IT support than traditional solutions. Additionally the solution should be Linux based. The reason: Linux is stable and reliable. This would simplify management and make solution subject to less downtime than some alternative solutions. Additionally being Linux based reduces many security problems, as far fewer attacks, generally speaking, are aimed at Linux than traditional operating systems.

Furthermore, most operating systems are packed with drivers, utilities and services that are seldom used. An ideal solution would only use the parts of the Linux Kernel that are needed to perform the desired functions. This would reduce potential vulnerabilities.

To simplify matters further, the solution should be very easy to deploy. For example, it should be offered as a simple plug and play solution in the form of an appliance. And the solution should support remote management to troubleshoot and correct small problems, as well as recover from a system crash.

A solution with these characteristics will save a business partner valuable time that would otherwise be needed to administer solutions at every client's site. This saves time and money. It allows a business provider to provide services in a more economically efficient manner to existing customers. And it frees up time to solicit and support new businesses.

Enter: An affordable solution designed specifically for small businesses

Small Business Server Appliances are a new breed of Small Business Server Solution they are delivered delivered as a plug and play hardware appliance, everything is included. Its pricing structure is simple and straight forward. Business partners do not have to deal with multiple and complex licensing agreements as is the case with many alternative offerings where you are required to switch platforms (or upgrade hardware) above 75 and 100 users, or when email and data storage requirements reach a certain limit.

Small Business Server Appliances offers file and print sharing; firewall, anti-virus, anti-spam protection; email, calendaring, contacts, tasks; secure remote access; data backup and disaster recovery features; office productivity tools; and automated system updates.

Everything is included within the appliance as a single solution. And business partners can use the platform to deploy other applications that a client might need.

The high performance appliance hardware allows a powerful solution to be delivered in a small footprint. This also provides the ability to scale solutions as a clients business grows up to 500 users without artificial licensing barriers. Furthermore, the appliance format also makes the solution very easy to deploy, typically it can be up and running in about 20 minutes.

Setting the solution apart: Autonomic features and benefits

Small Business Server Appliances are designed to run on their own at a customer's site with little intervention from the business partner. To accomplish this we make use of autonomic features that automatically handle many routine tasks and can correct many problems on its own as they arise. These autonomic features ensure that the small business stays up and running and its systems and data are protected, all while off loading time consuming IT tasks from business partners.

For example Small Business Server Appliances comes pre built and pre configured and can usually be implemented in around twenty minutes. There is no monitor or keyboard, the admin interface is accessed via an IP address securely through HTTPS which enables you to manage the appliance remotely. In contrast, alternative solutions often require the business partner to load 5 to 15 CD's to get a system running initially.

Small Business Server Appliances also has the ability to self manage automated backups to a disc based storage device (on or off site), to a hosted backup service in addition to traditional tape or USB based storage devices. A few Small Business Server Appliances also provide the option for integrated hot swap backup discs to be used which enable data to be backed up continually throughout the day.

Summary

With Small Business Server Appliances, business partners get an easy to implement and easy to manage solution that has specifically been designed for smaller businesses.

Small Business Server Appliances come pre built and ready to be used this solution offers a rapid time to value.

All of the attributes of Small Business Server Appliances pay dividends twice over. First, the small business client is happy, because they can do their jobs without computer related interruptions. And second, a business partner can deliver a high level of service while dedicating minimal IT resources and staff to each client.

The autonomic features of the solution reduce the time and resources a business partner must invest to begin work with a new client and to support existing small business customers. For example very little training is required to become familiar with the solution, so business partners quickly leverage the solution and immediately become more profitable.




Sharp Technology is a UK based provider of Small Business Server Appliances [http://www.sharptechnology.co.uk/] that deliver all of the essential IT and technology services to smaller businesses (typically 1 to 100 users) but without the usual cost or hassle. We supply to organisations throughout England, Scotland, Wales & Ireland and internationally in the US, Canada & India.

Further information can be obtained from out website at [http://www.sharptechnology.co.uk/]





This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Thursday, 21 July 2011

How big data could change what you watch on TV

Los Angeles-based startup What’s Watched aggregates data from social media and mobile applications to provide media companies with a view into what shows are being watched and who’s watching them. That data can then be used to target specific demographics of users to increase ratings and grow their audiences.

In addition to publicly available data from Netflix, iTunes Twitter and Rotten Tomatoes’ Flixster app, What’s Watched incorporates data from some apps that it has built. They include social TV app ScreenTribe, Facebook for iPad app Friended and TV guide app Zap2it, which it developed in conjunction with Tribune Media Services. Using those data sets it has also built an ad platform for targeted mobile campaigns.

According to What’s Watched CEO Matt Wiggins, the real value of the data it collects is the ability to map the social graph for TV viewers, which allows it to categorize users into different clusters or “tribes” based on the way they use social media. The startup can then offer that data to broadcasters to help them understand how users interact with their shows, and which users are most influential.

“You need to target specific people to get a ratings lift,” Wiggins said on stage at the Social TV Summit in Los Angeles Wednesday. Comparing What’s Watched to Billy Beane’s Oakland A’s in Moneyball, he said that the company can help identify users that media companies can target to increase ratings. With the startup’s data in hand, broadcasters can make more efficient decisions about which groups of users to go after.

What’s Watched isn’t the only company trying to tackle this problem: New York-based media marketing firm Simulmedia also seeks to help networks boost ratings for their shows by using data sets to predict where they should advertise to drum up interest in new shows. And Bluefin Labs can help identify affinity groups between different shows, allowing media companies and marketers to know which shows are likely to have common viewers.

What’s Watched has raised a small amount of angel funding but according to Wiggins is already profitable, with about 25 employees altogether.

Related research and analysis from GigaOM Pro:
Subscriber content. Sign up for a free trial.


View the original article here


This post was made using the Auto Blogging Software from WebMagnates.org This line will not appear when posts are made after activating the software to full version.

Thursday, 23 June 2011

If The Slowdown Is Temporary, When Will The Newsflow Change?




Just thinking out loud ...

Fed Chairman Ben Bernanke argued that the recent slowdown was mostly due to temporary factors. From the FOMC statement: "The slower pace of the recovery reflects in part factors that are likely to be temporary, including the damping effect of higher food and energy prices on consumer purchasing power and spending as well as supply chain disruptions associated with the tragic events in Japan."

I also think we will see some pickup in the 2nd half of 2011, although I think the recovery will remain sluggish and choppy.

There has been some progress on the supply chain issues, and oil and gasoline prices have fallen sharply since late April.

So when will we see some better economic news?

Clearly we will see some ugly reports over the next few weeks. The regional manufacturing surveys will probably all show contraction in June, and that means the ISM manufacturing survey will be pretty bad, and maybe below 50 - indicating contraction nationally (to be released Friday, July 1st).

The May Personal Income and Outlays (Monday, June 27th) will be weak (May was a tough month), and there is little indication that the June employment report will be strong (Friday July 8th).

However, the Pending Home sales index (Weds, June 29th) will probably show a decent rebound from April. And several house price indexes have shown a bounce in house prices in April including the FHFA index released today.


U.S. house prices rose 0.8 percent on a seasonally adjusted basis from March to April, according to the Federal Housing Finance Agency’s monthly House Price Index.

Of course the FHFA index is based on GSE houses only, and almost everyone follows the Case-Shiller index now (Tuesday June 28th).

Even though Case-Shiller is a three month average - and the April report is for February, March and April - it is likely that Case-Shiller will be less negative in April than the previous months, and maybe even slightly positive. Seasonally April is usually one of the worst months of the year for the Case-Shiller index, so a less negative reading would be viewed as a positive.

And auto sales (Friday, July 1st) will probably show a rebound in June after the sharp falloff in May. From the Detroit News: GM will have 'good' sales month in June, exec says


"GM is going to have a good month — and I will leave it at that ... I feel good about June, and Ford does, too," [General Motors North American President Mark] Reuss said.

Ford Americas President Mark Fields told reporters earlier this week that June is "off to a good start."

But for manufacturing in general it might be some time before we see some more positive reports - the earliest would be mid-July, but it might not be until August or later.

And although gasoline prices are falling, prices are still much higher than earlier this year - and still above the levels in March. Consumption was somewhat weak in March, and that was when we saw the sharp decline in consumer sentiment. So falling gasoline prices will help, but consumption will probably still be fairly weak.

Last year at this time I was looking for weaker reports, and this year I'm looking for slightly better reports. Of course, as I mentioned above, some of the ugly reports are still coming (ISM manufacturing, Q2 GDP, etc) - but I think we will see a little better news here and there. I'm just starting to figure out when (and if) we will see a little pickup.

Unfortunately, even if the news is a little better, the recovery will still be sluggish ... (and remember, I have no crystal ball).


Please follow Money Game on Twitter and Facebook.

Join the conversation about this story »

See Also:







Generated by BlogIt

BlogIt - Auto Blogging Software for YOU!

BlogIt - autoblogging software for YOU

BlogIt - autoblogging software for YOU