VID NEWS IN BRIEF



Fellow Americans and all that sail the ships of the Video Sea, we interrupt your reading for this special news…

…An announcement made at CES (Consumer Electronics Show) went somewhat unnoticed. Dish Network Chief Executive Joe Clayton stated, “that all unprofitable Blockbuster stores will be closed.” He went on to say, “We are committed to keeping profitable stores open that are generating positive cash flow.” A time frame or the number of stores was not disclosed. Clayton stated it would be on a store by store basis. So if you compete with any of the Blockbuster/Dish Network stores and there is not a lot of cars in the parking lot on Friday or Saturday nights, you may want to prepare for more profits coming your way.



…Also at CES was another announcement that seemed to go unnoticed. Microsoft has halted negotiations with various media companies to source programming for its Microsoft TV service. According to a media executive who participated in the talks, “They built a Microsoft TV, they demoed it for us, they asked for a rate card but then said ooh, aah, that’s expensive.” Microsoft’s business model (similar to that of Netflix) intended to offer content that was current and included live networks. Unfortunately the cost of sourcing this was too high for its business model. This definitely shows content is taking back its throne as King as Microsoft found out it’s also expensive.



…And again at CES an announcement that went unnoticed…Apple has been on the hunt negotiating with various media companies for TV channels and shows that it could beam, ala cart, as a part of its ambitions for Apple TV. Unfortunately they have not been able to work out suitable deals with content providers. It sure does seem that content providers (to include studios) are not going to allow even major corporations, like Apple and Microsoft, internet-based distribution of their content to upset the applecart from more profitable delivery systems such as cable, satellite and yes, physical media sales. Now that’s a good thing!



…Finally another announcement at CES that also went somewhat unnoticed concerned original TV programs developed and produced for WebTV. “There will be a lot more of them.” Yahoo and Netflix have already announced they are in the development of original programming. It is rumored that Apple and Microsoft may be looking to do the same as well as other internet companies and possibly wireless companies too. Hmmm, now why would there be so many considering taking the risks to produce their own “original” programs? Good luck with that!