Ready to cut the cord?

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.

How Amazon will wreck the pharmacy industry

How Amazon will wreck the pharmacy business

Amazon quietly entered the pharmacy business in 2017 and introduced PillPack, a direct to home prescription drug business that packages pills by daily dosage, with dates and times to take the medicine printed on the package. The retail pharmacy heavyweights currently play middle man by negotiating discounts from drug makers for large health insurers, creating special pricing for insurance networks. By selling directly to insurance companies, Amazon will cut out the retail pharmacy giants. CNBC

dis-rup-shun: Amazon’s disruptive move will benefit the consumer with lower drug prices and, possibly, lower health insurance premiums, but will destabilize the retail pharmacy industry by forcing it to rely more heavily on the sale of non-drug products, a battle it is already fighting against Amazon.com and Prime. One answer is for retail pharmacies to move more aggressively into care clinics, a trend well underway, putting further pressure on doctor and hospital chains to become more consumer-friendly as they are forced to compete with retail pharmacies for walk-in healthcare.

Direct share offerings will put a squeeze on bankers

Collaboration tool vendor Slack went public this week without assistance from investment banks, gaining 50% value in its first day. The capital raise puts valuation of the company at $23.1 billion. Compare this to Uber’s IPO last month which, by absolute dollar valuation, was the worst performing IPO in history. Both Lyft and Uber have recovered somewhat from a bad initial offering. Gizmodo

dis-rup-shun: Two large IPOs, Slack and Spotify in 2018, were direct (limited banker involvement) offerings. Both companies have enjoyed strong value growth since IPO. Uber and Lyft were heavily hyped by investment banks and crashed after offering. Before we conclude that bankers are bad, it is important to note that Uber and Lyft’s business models do not show profitability in the near term, and seem to be in multiple businesses. On the other hand, Slack is facing stiff competition from tech giants. If we assume that the market is sophisticated enough to understand the competitive landscape ahead of the IPO, then one conclusion is that bankers may be over-promoting offerings and that a more informed market later corrects. Expect direct offerings to become more commonplace, eventually forcing a correction in the fees charged by banking firms.

Zuckerberg outranks Tim Cook

Glassdoor’s anonymous survey of former employees’ views on their CEO has a number of tech CEOs ranking in the top 10. Ranking in the lower half of the 100 ranked are Facebook’s Zuckerberg at 59 (#1 is the best) and Apple’s Tim Cook at 69th place. ZDNet

dis-rup-shun: Interesting to see Cook at the bottom of the heap, especially after a brutal year for Facebook’s public image. Does the secrecy inherent in Apple’s culture create distrust inside the family? Despite Facebook’s missteps, Zuckerberg has been quite penitent in public, perhaps gaining employee’s respect. It is rare for a company as successful as Apple to not become an arrogant empire, and perhaps more transparency would engender more employee admiration.

Netflix will eventually include advertisements, says industry

Netflix, with its 150 million subscribers, faces significant costs from developing original content. Industry insiders predict that Netflix will break its vow of no advertisements as production costs increase and the value of its audience reach soars. CNBC

dis-rup-shun: Netflix continues to pursue a unique strategy — using debt to finance a very large catalog of original content that it can monetize over coming years. As other streaming services are launched from companies including Disney and AT&T’s WarnerMedia, Netflix subscriber growth will be challenged. The barriers to entry for streaming services have become original content — a very expensive barrier. As John Penney, CSO of 29th Century Fox has been telling the industry for years, there is simply not enough non-movie theater revenue in the TV distribution chain to support the costs of original content. The company’s stock price, however, continues to show confidence in the company’s ‘think different’ strategy.