Thoughts on the New Facebook or, "STOP CHANGING, FACEBOOK!"

Yesterday, Reed Hastings (CEO of Netflix) included this statement in his apology letter to Netflix's customers:

For the past five years, my greatest fear at Netflix has been that we wouldn't make the leap from success in DVDs to success in streaming. Most companies that are great at something – like AOL dialup or Borders bookstores – do not become great at new things people want (streaming for us).

(Keep this thought process in the back of your mind for now. We'll get back to it)

Today, Google opened up Google+ up to everybody (something I argue they should have done since the beginning), including anyone without an invite.

Coincidently (or perhaps not so) Facebook made some significant changes to their layout, functionality, and design over the past week. We all know the one constant in our lives: when Facebook makes a change, the whole world complains.

Without a doubt, the changes Facebook made are significant. The way stories show up in a news feed is almost completely different and they've now instituted an extra "creeper bar" (not mine or Facebook's terminology) to show the user what's going on with their friends, in real time.

Most of the comments I've heard are not based around the design factors, the content, the creepiness, or anything else.  No, the comments I've heard have almost all been monolithic: "STOP CHANGING, FACEBOOK!"

I suppose that somewhere inside of all of us is an inherent desire to remain comfortable. I suppose we all want to stick with what we have.  It is the same reason that sooooo many people are still running Windows XP. If something costs money and is likely to make things more confusing, people are likely to forego it if at all possible.

What occurred to me, though, was that no one complains about Windows coming out with a new OS because it changes(I have it, more comments later on it). No one complains about Apple coming out with a new OS because it changes.  Why? Probably because it costs money to upgrade. **I'll forego, at this time, my argument that everyone should upgrade (except for Windows Vista) to a new Operating System whenever possible.**

But with Facebook, you don't get a choice.  They upgrade your account and Facebook experience for you, without your permission.  And no, they didn't ask you first.

And Facebook is free. They control what you can and can't do (no matter how much we convince ourselves that we are in control of our own information) and we are their mercy.

So why the problem? Why the complaints?

Because Facebook has to change. Because there was this little company that started a social network with a dumb bird as a logo that is growing at unbelievable speeds. And because one of the biggest companies in the world that seemingly controls all of the information on the internet and how we find it decided to create a pretty good competitor to the big FBook.

And, people don't have a lot of loyalty to Facebook.  They don't have any money invested in it. And switching networks will become more feasible as more people are on both.

There's a threat at hand. Facebook is facing an enemy, one who is trying to steal their user base. This hurts page views.  This hurts ad clicks.  This hurts profits.  This hurts their business model.

They can't remain stagnate. No one can.

The best thing a Facebook user can do is to accept the fact that one of the biggest things they're addicted to in the world is really, at its heart, a competitive business and nothing more. Zuckerberg might try to sell you on their "connect everyone better" mission, but they won't survive without money. Like any capitalistic group, Facebook is a business and needs to stay that way to move any further. When people invade their turf, they're going to fight back with everything they can because...they simply have to.

The better question ought to be, "How can you change, make yourself more useful, and still maintain a simplistic atmosphere moving forward..one that doesn't confuse people?"

This is what Google has nailed. When they came into the search scene, they didn't just stay with search. They made themselves better.  They evolved.  They made themselves more useful. But, when you're trying to find something on Google.com, there's no question as to where to start typing.

None.

-B

How the Netflix Disaster Really Went Down

Netflix is facing a lot of heat, even AFTER Reed Hasting's (their CEO) email yesterday apologizing to the entire Netflix community about how he handled this. The wonderful world of JoyOfTech provides insider information on how this all went down. Original post here.

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Sure seems to be what they were thinking. I tend to think Reed knows what he is doing, and he is fighting an uphill battle against the content companies, who keep demanding more and more and more money.

It'll be interesting to see how it shakes out.

-B

Apple TV, iCloud, and The Future

When Steve Jobs introduced iCloud at WWDC, he announced a new thing called iTunes in the Cloud.  In essence, iTunes now makes all of the music that you purchased from iTunes in the past available to download onto any iOS device or Mac you own. One problem though: how much music have you bought from iTunes? In recent years, probably a decent amount.  But in the past, perhaps not as much. Problem solved: he then announced iTunes Match, a $25 a year service that takes your iTunes library and matches the music you own (legally acquired or not) and matches it with the high quality iTunes files.

This makes one thing possible: if your hard drive goes down, your iTunes will be backed up in their cloud services. Thanks Apple, nice touch.

Today, quietly, Apple updated the software in the second generation Apple TVs and allowed for any iTunes TV Shows purchases you ever made to be streamed to the Apple TV over the internet.  Kind of like Netflix, but with content you've already purchased.

Presumably, after more deals are made, iTunes Movies will be next.

Before we press on, allow me to explain to you what I do on a regular basis now. Throughout my life, before things like Netflix and Hulu, I purchased a lot of content on optical discs (DVDs). I got a little addicted to the 4-for-$20 deals at Blockbuster. We bought (or usually, received as gifts) TV seasons of shows that we enjoy.  And pretty soon, we had a nice little library of DVDs that had to find a place to sit in our tiny apartment.

One thing has struck me as strange throughout the past couple of years though: why do we do this? You know where my collection of CDs is? I have no idea. I really don't know.  Every piece of audio I own has been ripped into my iTunes library. Prior to Amazon Cloud Player, Google Music, and iTunes in the Cloud if my hard drive crashed, I'd consider my library of music gone. Not because I don't have the physical CDs (for a lot of them, I do), but because the amount of effort to find and rip would be too much to go through.  From the time when I first learned of digital music players (and particularly, the one that could hold ALL of my library in my pocket...iPod), I knew that optical media was going away. And it was going away quickly.

So, recently, I've been doing the same to my video collection. Slowly, but surely, I ripped all 9 seasons of the King of Queens onto my computer. It took time, yes, but it was well worth it. Because here is the process I used to have to go through to watch an episode:

  1. Decide I want to watch a random episode of the King of Queens.
  2. Go get a season from the bookshelf.
  3. Open the box.
  4. Find a disc (usually three or four per box)
  5. Put it in the DVD player.
  6. Wait for the opening menus (that don't allow you to fast forward) to end.
  7. Pick an episode.
  8. Press play.
But here's how I usually watched an episode: TiVo. If there wasn't a recent episode to watch on TiVo, I just didn't bother.
Last year, Apple introduced iTunes Home Sharing, allowing the new Apple TVs (and an iOS device on the same Wireless network) to access your iTunes library. Thanks to my handy ripping, here is my new process:
  1. Decide I want to watch a random episode of the King of Queens.
  2. Change the input of the TV to Apple TV.
  3. Choose an episode.
  4. Press Play
Because of this, I literally haven't used TiVo in months.


When it comes to personal digital content, I am convinced that this is the only way going forward.


And as always, there's a catch: Apple TV must connect to an iTunes library. Which means that your computer must be on, awake, and iTunes open in order for Apple TV to see it.


So this update today: big news or small news? BIG news. Why? Because now, you can watch anything you purchased through iTunes anywhere.  At the airport and forgot to sync that TV show you've been meaning to watch? No problem, download it from iTunes.  You bought it, right? You have the right to watch it. FINALLY.


But there's a catch: how many TV Shows have you purchased from iTunes?  Not many, I'd bet. Why? Lots of reasons: too expensive, crazy copy protection, only digital forms (can't lend them to people, etc), and more. Instead, you'd do what I did.  Buy it at Target on sale, rip it all and THEN access it. Or if you didn't know how to do that, you'd still be using those silly old things called DVD players.


Which leads me to my proposal: iTunes Match for TV and Movies. PLEASE, Apple.


Here's how iTunes Match works (from what we know).  Apple went to the Music companies and asked for it.  They most likely said no. Then Apple said, "We'll pay you large sums of money.  You're not getting a dime from people stealing music now, how about we do this and give you large sums of money?" To which the music companies thought, "Good point." This is the same reason Netflix has a bunch of content you may never watch.  Netflix approached the studios and said, "Listen, you've got content collecting dust on shelves not making ANY money.  How about we write you a check and you let us stream it?" To which the studios thought, "Good point."


This needs to happen with iTunes TV Shows and Movies. I own a bunch of video content in optical form. And I definitely don't want to have to buy it again. BUT, if I could pay a yearly fee (probably more that $25) and could give it the bar codes to everything I own and then have that content on any iOS device I want, whenever I want, however I want, it'd be worth every dime.


The studios would get more money than I've already paid them, and for those who stole episodes of this and that...the studios would be getting something from someone they weren't getting anything from. Everyone wins.

Every time you go to Target, more and more optical content is priced cheaper and cheaper. Why? Because Netflix and Hulu are popular. And because it makes less and less sense as time goes on.  Netflix doesn't have the King of Queens or the Big Bang Theory. And if I stop paying my subscription, Netflix goes away. I need a way to access my content that I own, in as convenient a way as I have through Netflix and Hulu.


Please, Apple, hear my cry.


-B

The Future of Television

Today Netflix announced that they will be delivering an exclusive television series to Netflix subscribers in 2012. And, even better, it is not some no-name TV show. It's going to be called "House of Cards" and will feature Kevin Spacey as a lead actor. Guess who is the executive producer too? David Fincher. The show will be available to any device that can stream Netflix. Presumably, at a given time every week.

So, let's get this straight: you'll be watching a first run episode that no one has ever seen (so in a sense, live) from any device anywhere. It's like HBO, without having to go through a cable provider. And available to you when you're on vacation.

My point: isn't this exactly what television in 2011 should be like? I think we are becoming one step closer to getting rid of cable providers.

I've been thinking for awhile about how far we are away from completely Internet based TV. Even as it is now, I watch shows the day after with Hulu for the iPad hooked up to the TV via HDMI. I use the Apple TV to stream podcasts and YouTube to the television. We use Netflix to watch movies if we have a free night (don't remember when the last time that was...), also via Apple TV and the Wii. I use the MLB app for the iPad and Apple TV to watch any Major League Baseball game whenever. As of late too, I've been using the March Madness app for the iPad connected to the TV to watch tournament games that we don't get via cable. The NBA also has this functionality.

Brilliant. Completely brilliant.

I might add as well that because we don't have HD programming here, the quality is better via Apple TV and the iPad than it is via our cable provider.

I rarely use our TiVo anymore.

It is, and will continue to be, easier to break off from the cable provider.

As I see it, the only real issue (other than HBO shows and shows like Mad Men...none of which I watch) with this model is ESPN. Major League Baseball is going straight to their customers. You subscribe by the month and can watch any game whenever you want, get a radio feed whenever you want, AND watch a broadcast from either team's home commentators whenever you want. In an area like we live in with no teams close by, this is an absolute must for a baseball fan.

If ESPN sold their programming through a subscription to their customers, wouldn't you buy it? Then you could use any device whenever (including those hooked up to your television) you want to watch ESPN. I have a feeling if this became competitive (rather than monopolistic companies that are the only ones who serve your area controlling your programming, etc) it would drive the prices down. It would cut out the middle man between the channel that offers the programming and the consumer.

That model is always a better model. I'd much rather subscribe to NBC, CBS, ABC (or even better...specific shows) directly than pay a cable provider a ton of money each month for a bunch of crap that I don't watch.

I only hope the channels and producers see this. Huge opportunities are ahead of us.

This happened in music with iTunes and later Amazon. The customer of the labels was not the retailer, as they often thought...it was the listener. This has happened more or less in news publications since its conception. This needs to happen in movies (although the movie theater experience inherently means this may be impossible) and I definitely think it is about to happen in TV.

Congrats Netflix, I'm going to give "House of Cards" a try.

-B