IP Democracy: Carlsbad Connections: More Verses of the Same Song

(Carlsbad, CA) Martha Stewart walked up to a microphone when there was a call for audience questions after Sony CEO Howard Stringer’s remarks at the Wall Street Journal’s “D: All Things Digital” conference. I had just asked the previous query about the CableCard stalemate between the consumer electronics and cable TV industries, and Sir Howard had aggressively replied that the cable industry has “very fierce negotiators;” but he enthusiastically opined that the two sides would eventually find common ground, even though he pointed out that Sony is “the only holdout of the CE industry.” Sir Howard also brooded that it would be a “nightmare for the TV industry” if TV sets became merely monitors, controlled entirely by other vendors’ boxes.

Now it was the Domestic Diva’s turn, and Stewart advanced carrying a white shopping bag. From it, she pulled black cords and electric power blocks plus a camera, a mobile phone and other gizmos. She complained that she had to carry so many incompatible cords and power supplies - and she needed even more for her several homes and for her cars.

Couldn’t Sir Howard do something about the compatibility, she begged.

Moderator Walt Mossberg suggested that Stewart might weave the assorted cords into a macramé welcome mat, and Sir Howard good-naturedly suggested, “You need a native bearer” to help her carry so many electronic tools. He also sympathized that he’d see what he could do about such consumer problems.

The entertaining digression actually reinforced Stringer’s message throughout his hour on stage, during which he offered a mea culpa for Sony’s poor software background and admitted that “we’ve had a great problem with applications software.” (The lament was a counterpoint to his glee about the box office success of Sony’s hit movie, “The DaVinci Code.”)

Sir Howard waxed enthusiastically about Blu-Ray technology and PlayStation 3, providing a morning-after response to Bill Gates’ gloat at the previous evening’s session. In particular, Sir Howard insisted that Sony is trying to find as many applications as possible for the PS3.

Earlier, Comcast COO Steve Burke (substituting for CEO Brian Roberts) said that he expects the MSO to have more data and voice customers than video subscribers - possibly in the next five years. He forecast up to 25 million data and voice customers, well above the current 21.5 million video subscribers. Burke also said that by the end of this year, he expects Comcast to offer TiVo technology integrated into its set-top boxes. On the topic of network neutrality, Burke said that showing preference to selected content suppliers “would be one of the dumbest things we could do.”

Disney CEO Bob Iger talked about the need to develop multi-platform distribution, noting that consumers are already showing that they want to see - and are willing to pay for - content on various media. Iger cited the 7 million streams of ABC TV shows served since Disney launched its video iPod service. And he predicted that a new process for timing distribution windows will emerge as producers better understand the revenue potentials. There will be a new distribution model, Iger predicted, which may be a blend of existing models.

His pronouncement of the need for multi-platform strategies was echoed throughout the day by Discovery Networks’ Judith McHale, Yahoo’s Terry Semel (who also got caught in a defense of his company’s China initiatives), Martha Stewart OmniMedia’s Susan Lyne and other speakers.

Gary Arlen, president of Arlen Communications Inc., can be reached at GaryArlen@columnist.com

Posted by Gary Arlen on May 31, 2006 9:40 PM to IP Democracy