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Consumers love Microsoft, Amazon distrust Facebook, Twitter

Verge consumer survey shows what tech companies are loved and disdained

The Verge completed a follow up survey to its 2016 survey on public perceptions of tech firms. Facebook lacked trust in 2016 and has fallen precipitously, while Amazon, adored in 2016, remains a public favorite. Microsoft is the must trusted tech company (75% trust it), followed by Amazon (73% trust it).

56 percent said the government should break up tech companies if they control too much of the economy
72 percent said that Facebook has too much power
51 percent said Google and YouTube should be split into separate companies

dis-rup-shun: What is surprising about the survey is that Apple is in the bottom half of companies discussed. Has Apple’s premium product positioning and pricing made it an elitist brand that does not appeal to the masses as do Google, Netflix, and Amazon? Perhaps Apple has become the Nordstrom’s in a Target world, where technology is now a lifestyle necessity of all but the most impoverished, and highly accessible brands are seen as providing great utility to society. Facebook, however, remains a powerful but disliked brand — a precarious position for long-term success.

Walmart readies answer to Amazon Prime

Walmart will soon launch Walmart + which is a fee-based loyalty program aimed to combat Amazon Prime. Amazon now controls 40% of online retail, Walmart.com controls 5%. Walmart is exploring perks for which it has a unique advantage, such as 1,600 grocery stores in the U.S. that could provide free delivery. Aside from free grocery delivery, the retail giant may be hard pressed to find other advantages its chain can offer over Amazon. Vox

dis-rup-shun: Amazon has changed the rules of shopping, with Sunday deliveries so successful that FedEx trucks are rolling down neighborhood streets on Sunday. To beat Amazon at its game, Walmart must not only offer equivalent one to two-day delivery, but must provide a product that so delights customers, as Amazon Prime Video does, that consumers will, as with Amazon, feel as if they are receiving something for free. Grocery delivery is great, but more of a necessity than a pleasure. Free ice cream delivery, or make it dessert delivery, could be a game changer.

AT&T TV: meet the new face of cable TV

AT&T has exactly eight video service offerings, and the newest is simply AT&T TV. The new service looks like a skinny cable bundle (just the major channels), is delivered over the Internet, and costs only $50 per month. The catch, however, is that a two year contract is required, and year 2 costs $93 per month before a plethora of add-ons. CNET

dis-rup-shun: The masses are cutting the cord and there are many, many streaming TV package alternatives. Hulu and YouTube TV are the early leaders with bundles that look like cable, but cost a lot less, and provide whole-home (multiple device) solutions. AT&T TV is a clever offering, in that it will appeal to those that believe they should join the cord cutting revolution, yet just aren’t sure if non-traditional providers will give them what they want. Enter AT&T with a promise to deliver the new TV dream while also providing a familiar pricing package full of expensive add-ons and increasing prices over a contract period. Once again, the company will churn the same user base that it recently churned from U-Verse to DirecTV.

Another one (SpaceX rocket) bites the dust

Elon Musk’s SpaceX lost another Starship that apparently buckled under pressure as nitrogen filled its tanks. This follows a series of failures of different types and parts of rockets as the company remains hellbent on getting reusable space travel ready for prime time ahead of competitors. CNET

dis-rup-shun: Every rocket failure can be seen as a setback, but should be seen as great progress towards achieving safety in space. Every failure, let’s hope, is one less that will occur with precious cargo such as humans, aboard. The stakes for winning space are very high and commercial space travel is one area of technology that American entrepreneurs are leading the globe.

Consumer Electronics, IOT, Smart Home

Phone apps are cheating on you

February 14, 2020February 14, 2020by sbsikesLeave a Comment

Your phone apps are leaking data you did not authorize

Security researchers, after analyzing more than 1000 mobile apps, have found that many collect and transmit data to third parties even after you have denied them permission to do so during set up. One example is AccuWeather, an app that keeps transmitting your location even though you have denied it that permission. Third parties using the data are, of course, advertisers, and allegedly, the federal government for tracking immigrants. CNET

dis-rup-shun: The evidence is growing daily that new tech needs limits, clear standards, easy to understand data permission dashboards, and a body enforcing adherence to these policies. This is the role of government agencies such as the FTC and the FCC, but are these agencies too mired in Capitol Hill politics to assert needed leadership?

Sony PlayStation V faces market dilemma

The PSV, the next generation game console from Sony, will be the most advanced console hardware ever sold, with boosted memory, fast graphics and expensive solid state storage. The component costs of the device are estimated to be $450, well above the price of the prior generation PS4, which retailed for $399 before discounting. TheVerge

dis-rup-shun: The console market faces a crossroads, as cloud based gaming from Google, Nvidia and possibly Amazon (Apple’s Arcade focused on a different type of gamer) offer serious threats to console makers. It has been speculated that the end of the console is near. Sony, seeking to give gamers an experience better than they can get from cloud games, has created a premium device but now must price it higher than console buyers’ expectations, or take a loss on the device. What do you do when much of your loyal market is moving to the cloud? It’s time for Sony to say goodbye to the budget minded gamers — let them go to the cloud. Sony should rev up the PSV with the very fastest, hottest hardware and raise the price to take its position in the only place the device can survive — providing the “Lexus” experience for more affluent game players. It is time to lower sales projections and milk profits from the endangered console.

Half of homes will have cut cable by 2024

Roku, the streaming video enabler, outperformed expectations in the quarter just ended, buoying its stock 7%, and credibility, even further. The company predicts that half of U.S. homes will not have a traditional cable pay TV subscription in four years. Roku is an enabler of this transition, making old TVs internet-capable. CNBC

dis-rup-shun: The reinvention of TV is happening faster than we may have expected, and the results are better TV — TV on our time, with bundles of services (the new channels) that we ourselves choose, and programming far better than anything seen before. As it will be many years before all of our old TVs are replaced with internet-ready smart TVs, Roku has a bright future, and has time to figure out what it will be in its next generation. Meanwhile all homes need to upgrade their patchy internet service to support many video streams all day throughout the house.

Bezos wins one round in the Amazon vs. Trump battle

As you recall, Amazon cried foul at the Department of Defense’s award to Microsoft of the $10 billion JEDI contract to put the military on the cloud. Amazon claims that Trump manipulated the process to tweak Bezos, whose Washington Post has been highly critical of the president. Amazon filed suit in court and won an injunction. The injunction, however, comes with a requirement that Amazon be prepared to pay $42 million in case it was determined that the injunction was unnecessary. CNBC

dis-rup-shun: The chances that Amazon will get back into this contract are slim, however the fact that Amazon won an injunction is remarkable. If the courts find evidence that the president directly influenced the DOD’s process, then what other unsuccessful vendors of government contracts will claim that a brush off of their CEO by the Donald requires a review?

Smart Home

The next TV gets 4K over the air

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The next gen TV is built for cord cutting with 4K tuner

TV features continue to evolve quickly, even though people don’t replace TVs quickly. The latest feature is including a 4K tuner into the TV. TV channels in most major markets will begin to transmit the super high resolution 4K format over the air (free) this year. Cord cutters can rely on an antenna to receive local stations in 4K provided they have a built in tuner (new TV) or using an external set top box. Antenna and set top box are extras to purchase. CNET

dis-rup-shun: For those wishing to cut the cord (see instructions in Tuesday’s post), to receive local channels, one can either use the local TV apps provided by Roku or YouTube TV or one can put up an antenna on the roof or in the attic, and either buy a special set top box or a new 4K ATSC 3.0 compatible TV. With TV features now changing quickly, you should buy up when purchasing a TV, hoping that spending a few hundred extra dollars will keep your TV compatible with the latest technology for a few more years. Unfortunately it looks like the days of not having a bunch of extra boxes plugged into your older TVs will never arrive. Despite the amazing technologies available for home entertainment, it seems that every home implements TV a bit differently, challenging the AirBnB concept and making hospitality TV systems in hotels even more necessary.

DNA testing is down, impacting 23andMe

Makers of DNA testing equipment confirmed what CEO of 23andME reported, and that is people are doing less DNA testing. The breakthrough technology enabling consumers to test their DNA led to fast growth for the company, ballooning to 700 people. The company is now laying off 100 employees due to a sharp decrease in testing that started in 2019. The CEO attributes the downturn to people’s concerns for privacy, and fear of a recession, resulting in more cautious spending. CNBC

dis-rup-shun: The fears of a recession in 2020 seem to have calmed, so the drop in DNA testing must, in fact, be related to privacy. It is a fact that many people who have performed the test are not happy with what they have discovered, but the question is, is there a growing wave of consumer fear about loss of privacy? Ring, the doorbell camera maker, is facing backlash from consumers over video sharing. Consumers whose homes or faces appear in their neighbors’ shared videos are feeling exposed, and perhaps a side effect of a connected society is a society that feels watched over. This is a trend to watch in the coming months.

Microsoft sets the path for a new kind of computer experience

The foldable computer is the post-CES buzz, and Microsoft is showing developers how to create dual screen apps that are properly split so that the fold, in a foldable, isn’t doesn’t obscure the app window. Microsoft is pushing a new form factor that is sort of like the current form factor. That is, the new computer is a clamshell, but the keyboard area is also a screen, and the screen extends upwards (where it should be). Getting developers to build apps for this new, unproven device will be a challenge, but one that Microsoft believes will pay off. CNBC

dis-rup-shun: The PC form factor has not changed in years, so maybe the market is ready for something fresh. The thing that has kept tablets from taking over the computing world is the need for a keyboard. If a foldable computer doesn’t have a real keyboard, or an app flat on the desktop that works as well as a keyboard, then this new device is a multi-tablet screen. If this device is visually stunning, with lots of screen space, then making this an amazing video watching device may be the best path to market.

Robots hold things without touching them

Robotics are on the rise in manufacturing, and ultrasound technology enables robotic arms to suspend tiny, fragile, or sterile devices and move them, position them or place them. By blasting sound waves at a certain frequency, robots can keep an item suspended in mid air. TechCrunch

dis-rup-shun: Robotics continue to perform specialized tasks, improving one task after another, and this suspension technology will enable robotics in settings such as surgery, medical equipment manufacturing, and many other applications. The success of robotics is in specialization rather than being an all purpose do-anything device, meaning that the idea of a really useful home assistant is at least a decade away.

Smart Home

Ready to cut the cord?

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Step by step guide to cord cutting

The art of cutting your traditional pay TV service and replacing it with an Internet TV service has become cocktail conversation. Even luddites are doing it. This step by step guide takes you through the process, which involves some new investments: you must have fast, hearty internet service, and you much either replace old TVs with internet ready TVs (smart TVs) or purchase external connections such as Roku or FireTV for those old TVs. When you are ready to end your pay TV relationship, you can return any devices that you are renting (in perpetuity). Between ending rental fees and government mystery fees, you could save anywhere between $50 to $150, not counting your investment in new stuff. Shelly Palmer

dis-rup-shun: There has been an ongoing debate as to whether or not final TV expenses are lower for cord cutters, given all of the great streaming services and add-ons. The bottom line is that traditional pay TV subscribers have been buying most of the goodies, such as Prime and Netflix, and tacking on premium charges anyway, so lowering the base pay for TV services is a big win, especially given that for now, these services are not opposed to account sharing by your kids at college. 5G will upset the internet subscription pay model, in that super fast 5G connections that can power your entire home’s internet needs will challenge your traditional internet service (and may be the same provider), making what we call ‘faster then required’ much cheaper in a year. It’s a moving target, but you have to jump in some time.

The murky future for Sonos

Sonos has announced a trade-in program for some of its first devices, while also announcing that it will no longer support products dating back to 2006 and 2007. The pioneer in streaming music is directing its efforts on supporting the latest technology, all the while suing partner Google for patent infringement. Wired

dis-rup-shun: Sonos makes some of the greatest products in the connected home realm, with a very simple user interface. Sonos is to whole home audio what iPods were to boom boxes, and Sonos became what Bose was to the prior generation — the mark of really cool home music systems. Amazon and Google, with some help from Apple, JBL and others, are displacing Sonos. Research indicates that the most frequent use case for smart speakers such as Google Nest Home and Amazon Echo is to play music. The biggest complaint, of course, being that sound quality is lacking. The smart speaker makers and the Bluetooth speaker makers are upping their sound quality, while adding support for smart assistants, meaning that Sonos’ advantages as a high fidelity provider of streaming music are all but gone. What’s worse, of course, is that Amazon and Google are happy to sell products below cost as they race to be the provider of shopping services, information services, and a hub for smart home products. If you manage Sonos, how do you compete with that?

Proving space travel is safe

On Sunday, SpaceX, in a final safety test for NASA, demonstrated its human recovery module in the event of a rocket explosion. The recovery module is, essentially, a lifeboat that will bring astronauts back to an ocean landing should there be an in-flight catastrophe. The exercise is in preparation for SpaceX’s upcoming transporting of astronauts to the international space station, not yet scheduled but expected in the coming year or so. Spectacular footage of the flawless launch, explosion, Dragon separation, and splashdown can be viewed on Wired.

dis-rup-shun: The exercise will pave the way for the return of U.S. based rockets ferrying astronauts to space — something that has not occurred since the last shuttle mission in 2011. Boeing, the beleaguered maker of the 737 Max, is competing with SpaceX to be the first to return a U.S. based astronaut in space, but at present the aircraft company has a lot on its corporate plate, giving Musk a chance to steal the spotlight. Of course Musk, with his soaring Tesla auto company, highly criticized solar company, and ambitious boring (tunneling) company, among other endeavors, seems to thrive with a lot on his plate. A private citizen eager to purchase a ticket on a commercial space ride has an interesting choice to make: ride on the craft made by the occasionally fiery Tesla father, or ride with the largest maker of commercial aircraft and semi-complete software. I will wait.

Microsoft pushing hard into remote worker software

If you haven’t been working from a remote site, you may not be aware of Slack, a web-based group working software application that makes it easy for remote or headquarters workers to instant message, call, and file share, all from a pop-up app always running on their PC or mobile device. Slack brought in over $175 million in revenue last year, a growth rate of 42% according to Yahoo! Finance. Microsoft has come after Slack with its Teams application, which it built on top of the awkward Skype VOIP application. Microsoft has gone prime time, highlighting on weekend commercials how the application is transforming the way people work. CNBC

dis-rup-shun: Teams and Slack are, in fact, changing the way people work — making it increasingly awkward to use the telephone, tethered or smart, to call a co-worker, when, with a click of a button, one can loop co-workers into a screen session and share a desktop. Document collaboration, while not something that happens in an office, is becoming a common result of frequent use of workflow software. Microsoft, having been blindsided by the commercial acceptance of Google Docs, is not about to give up more of its share of office productivity to San Francisco based Slack, but has declared a full battle to claim the new category, and is bundling Teams with Office 365. Bundling, however, does not ensure success, as Google Chrome has long bested Microsoft’s Internet Explorer and now Edge browsers, despite those being pre-loaded onto Windows computers.

Uncategorized

Holiday Amusement: Cord Cutting

December 30, 2019December 30, 2019by sbsikesLeave a Comment

Roku best stock of the year

As the Cord Cutting decade draws to a close, it is fitting that the year’s best performing stock among companies worth over $5 billion is Roku, up 355%. The company will report an annual revenue growth rate of 49% despite the fact that the company is yet to earn a profit. The company enjoys the largest market share for streaming devices (39%) and has a growing advertising business, but is playing in an increasingly competitive business. CNBC

dis-rup-shun: What a great company — Roku has continued to do what it was founded to do — provide a streaming alternative to TVs not designed to receive streaming content. The simplicity of its mission as well as its controls have made it a Wall Street winner. But what about the profit thing? When will lack of profits impact Netflix and Roku as they have Uber and friends? The new video industry is still in the midst of creative destruction (chaos) and the companies that are grabbing the most eyeballs are valued the highest — likely with the expectation that they will be acquired by a company that can generate profits. So enjoy the ride and keep streaming with Roku.