Davis Freeberg, Author at Zatz Not Funny!

DivX Loses CFO – Red Flag or Evolution?

DivX announced Tuesday, that John Tanner, their Chief Financial Officer, has resigned for âpersonal reasonsâ? and will be leaving the company at the end of May. Tanner has spent the last 2 and a half years working for DivX and to see him leave, less then a year after the company went public, does comes as a bit of a surprise.

Understandably, the market is concerned over the development. Shenandoah Capital calls the event a âlegitimate red flag.â?

Irrespective, upper-echelon management leaving is a legitimate fundamental red flag. In the specific case of a CFO change, a decline in results is a reasonable expectation. It is the âunexpectedâ? change, rather than the planned change that produces the warning.

Itâs hard to argue that the loss of Tanner is a positive catalyst for DivXâs stock, but other then whatever lingering regrets, Tanner might now have about getting that DivX tattoo Iâm not convinced that this news is really bad for anyone.

Gamefly Implements FastReturn Strategy

For the last few months, I’ve found myself buying more video games then I normally do. Usually I might buy a game once every three months and then play it intermittenly until I get sick of it and move on. Recently though, I’ve found myself wanting to try out more games and have been spending more time playing my Xbox then normal. This was probably caused in part, by my having to live without my Xbox 360 for a month, while Microsoft repaired my console. Once I got it back, I was ready to play video games with a vengence and have spent way too much money over the past few months, buying new games for my console.

At first I figured the best way to try out a bunch of new games would be to reactivate my Gamefly account, but every time I went to their site, I just couldn’t hit the submit button to actually sign up. It wasn’t that I didn’t want to join, but rather that every time I went to the site, I froze up when I was faced with the decision over whether I wanted ten days free or a discounted first month. This sounds really stupid because the difference in price was only a few dollars, but having had a negative experience with Gamefly in the past, I liked the idea of trying to see if they’ve improved and being able to quit without a hassle, in case they haven’t. At the same time, before signing up, I was about 75% certain that I’d be a member for at least the first month, so the part of me that loves a good deal, didn’t want to give up the lower promotional rate. The positives and negatives of this trade off were so evenly balanced in my mind, that for the last three months, I’ve been spending way too much money buying video games when I could have been renting them from Gamefly instead.

I probably would have just kept buying games, but over the weekend I came across a story on Digg, that helped to motivate me to become a member again.

TiVoCast Hits Spring Break

Last week, TiVo finally turned on TiVoCast for series 3 owners and so far I’ve been impressed, but it’s also left me wanting more. Over the last few years, I’ve read an awful lot about TiVoCast, but unfortunately have never been able to try it out, until now. It’s still a little too early for me to get a sense of how much I’ll actually end up using the TiVoCast programming, but already TiVo has made the service even better by announcing a new content deal with Break.com last weekend.

Break.com is a user generated video sharing site that will actually pay you $2,000, if one of your videos ends up on their homepage. Its look and feel are a lot like YouTube, but the quality of their content tends to appeal more to the male college demographic. This means that you won’t find critical documentaries on the site, but you will find plenty of videos featuring extreme skateboarding, practical jokes and of course people doing dangerous things after drinking too much beer.

Time Warner Faces Inferior DVR Legislative Action

Forrester recently did a survey where they asked consumers an open ended question about how they felt towards their DVR and 20% of the respondents used the word love to describe their relationship with the gadget.

When a consumer electronic device can generate this type of an emotional response, it’s safe to assume that for better or worse, the technology is going to have an impact. On a positive note, Forrester’s study revealed that this passion translates into DVR owners churning less and being more likely to pay for premium services.

less than 2% of people who owned DVRs have stopped using them. While today’s DVR owners are demographically mainstream, they are off the charts in their adoption of premium TV services and home electronics. Nearly half of them have a home network, which is four times the penetration of a typical online household.

Hollywood Killed Replay But Can They Take On Microsoft?

Shortly after I purchased my first TiVo, a friend of mine wanted to know my thoughts on whether or not he should get a DVR. Like any rabid obsessed TiVotee, I immedietely started gushing over, all of TiVoâs innovative features and about how much of a transformative effect, time shifting has played on my life.

After trying to hard sell him on a TiVo unit for over three weeks, I finally succeeded in convincing my friend to buy a DVR, but instead of going with the TiVo unit I recommended, he went with the ReplayTV 5000. I tried to talk him out of it, but no matter what I said he wouldnât budge. I showed him the superior interface, I let him test drive my own unit, I tried pointing out that suggestions and wishlists were exclusive to TiVo, I even tried to scare him into believing that Replay would possible stop working, if the company went bankrupt. No matter how hard I tried though, I couldnât convince him to choose TiVo over that ReplayTV 5000 unit because it had a feature no one could touch. Automatic commercial skipping.

When TiVo first launched, the movie studios completely freaked out over DVR technology. They understood early on, the impact time shifting would play on their revenues and went to great lengths to put a stop to it. Initially, TiVo wanted to partner with the studios, but instead the studios threatened to sue the company, if they even launched their product. Hollywoodâs huffing and puffing turned out to be little more than hot air when it came to TiVo, but when ReplayTV had the nerve to introduce automatic commercial skipping, the studios knew they had to draw a line in the sand.

We heard early rumblings, but when it comes to TiVo, you never quite know which rumors will turn out to be true. As it turns out though, TiVo and Amazon actually have been in negotiations to bring Unbox to TiVo subscribers and they are almost ready to roll it out. It goes into testing on Wednesday, but initially it will only be in a few hundred homes. In order to use the service, customers will need to first purchase their movies directly from Amazon’s website. Though you can download the movie right to your PC desktop, you can also download the film directly to the TiVo box. Amazon allows you to download 2 copies of any film at a time, but because of the system’s dependence on downloading, it means you’ll still have to wait to see your content. I would have preferred to have access to streaming content instead, especially given that it’s already connected to my TV set, but hopefully we’ll see something like that introduced further down the road. TiVo refused to give a timeline on the broader rollout, but it would certainly make a nice update, if they could enable it at the same time as when they launch TiVoCast for their series 3 boxes.

This is an exciting development for TiVo and is a great feature to be able to offer their subscribers. With Series 3 owners having been forced to give up access to pay per view, the addition of the content helps makes for a better trade off. Amazon’s movie selections is still pretty limited, but hopefully as the studios become more comfortable with internet distribution we’ll see more content show up.

Blockbuster Brings Carl & Ray Back

Blockbuster video announced that they will be bringing back their lovable Carl and Ray campaign for this year’s Super Bowl spot. If you haven’t seen the clips, you can find them on YouTube or most of the other video sharing sites. I’ve never been a big fan of renting from Blockbuster, but I have to admit that I love these ads. The spots do a great job of infusing humor into the marketing message and the cuteness factor of digitally animated pets has an especially broad appeal for a spot that will be seen by such a large audience.

95% Of Canadians PVR-less

The Cable & Telecommunications Association for Marketing (CTAM) ran a study where they looked at PVR usuage in the US and in Canada and determined that only 5% of all Canadians are currently using PVRs and only 38% were even familiar with how they worked. When they surveyed American consumers, the number of people who have PVRs jumps up 15%, but even at that level, it’s still a pretty small number given how powerful the technology really is.

The crazy thing about a PVR is that it’s really tough to demonstrate the benefits to someone without seeing it first hand, but once a consumer experiences the power of time shifting, it’s very tough for them to go back to live TV.

When I bought my first TiVo, it was actually on accident. I had gone to Best Buy to buy a home theater system, but the sound set up that I wanted was a little too expensive. Rather than go home empty handed, I made an impulse decision when I saw the TiVo and after taking it home was immediately floored with how transformative the technology was. Going from a world where you had to schedule your TV to a world where everything was available on my own schedule had a huge impact on my life and instantly made me an evangelist for the company.