UPDATED: Siri Come Save Me From My Acura!

It appears Apple has struck agreements with a number of car manufacturers to integrate Siri into their upcoming we models.TechCrunch reports today that Audi, BMW, Toyota, Honda and others will provide a Bluetooth enabled direct link to Siri in future designs. Couple this with Apple's announcement of integrated, voice, turn by turn directions, and my "fights" with my Accura may soon be at an end!

Now if Apple would only announce the acquisition of TIVO tomorrow.... (Wishful thinking I know....)

My 2009 Acura TSX is a great car. I am an Acura fan and other than an Infiniti G35X which I happily drove for about six years before handing the keys over to my daughter (which is another story entirely), I have to say my TSX is the best combination of reliability, practicality, and driving experience, I have had over the past twenty or so years or car ownership. Notice I didn't say this vehicle was the most "fun," or "best driving," car, but this car embodies value which is a defining term for what I look for in all purchases.

I don't drive much anymore. I work out of my house (and consider myself extremely fortunate for having this commute everyday!) and live in an urban community which encourages walking rather than driving with a mix of standalone homes, multi-dwelling buildings, great area restaurants/shops and increasingly difficult parking! Even though I purchased my TSX about four months ago, other than a business/family trip to Cincinnati right before Christmas, I haven't put a total of three hundred miles on the car. So in many ways I am still experimenting with the technology package (which is a premium feature of this model). Granted, a 2009 is a couple of years behind the state of the art, but I am not impressed.....

In particular, the car's voice recognition system makes Siri look like a Rhodes Scholar and Nobel Laureate even though Apple still labels this program as a beta! 

The simple act of getting the car to dial a 'phone number is   ludicrously difficult. "Call, Rachel" I command. "Fan off" the car politely responds. Undeterred, "Dial Rachel" I request and the car spits back, "XM Radio off." OK..... Let's try another tack, list Phone Book... The car spits out the THREE numbers I have MANUALLY entered because the car cannot successfully IMPORT my iPhone's Contact List! "Yes!" I cry, the second number is my daughter's mobile! "Call Rachel," I beg! The saccharine voice comes back, "Your options are, list, dial, next, last, store, previous." I am now halfway home and wondering what the point of my calling is. The dog is looking at me. Chab licks my face sensing some inner frustration, unsure what is going to happen next. I click the "talk button" on the steering column again and say, "Dial 999-555-2525." The car regurgitates, "Dial, 999-555-2525, please say store, dial, continue adding numbers, or stop." "Stop, please stop, I mumble...." The car says, "Dialing stopped." "No!" I scream into the microphone in the ceiling (but the dog takes it as a personal insult and curls up in the backseat no longer having any interest in the outcome of this fight).

I take a final shot, repeating the phone number, saying "Dial" (twice) and am greeted with the sound of the phone ringing and my daughter actually answering (two miracles in thirty short seconds!). Chab hears my daughter's voice and seems to find renewed interest in the goings on. After a two minute phone call, I hang up and drive the final mile to the house. Elapsed time, twenty minutes-- time "talking" to the car-- ten minutes; "talking to daughter," three minutes-- cursing at the process and driving, seven minutes! Really!!!?

Here are just a few other things my technology laden car tries to do and fails miserably:

POI and mapping-- My Google Maps stay up to date (free of charge, thanks Google), but the car's built in maps were dated the day I bought the vehicle. Cost of updating $180 (for a single year) and some hassle.

Turn-by-Turn Navigation- My five plus year old Garmin GPS could give navigation instructions using actual street names.... Turn right on 16th Avenue South.... in a quarter mile turn left on Edgehill Avenue.... My iPhone App-- Motion X GPS Drive (but there are many others to choose from)-- provides the same "human friendly" interface. My car, "Take the 2nd left," "Take The Next Right turn." "Oops you missed it!" (I wish it was that expressive!) My point, this car technology hasn't even kept up with year's old portable GPS alternatives. I know Apple will eventually gut the Google Maps cord and offer a turn-by-turn map experience, but for now, you need an Android device or a paid third party app to get really decent, verbal, instructions. You would think this is one area the car companies would get right, and they don't.

Asking the car to go to anywhere other than home (once you wade through the manual, and it does take some study! to program the car as to where "home is" the "Go Home" command seems to be the one voice entry which Wynona gets right on the first pass) is also comically frustrating. Without exaggeration, it can take twenty exchanges or more to get a new destination verbally entered and confirmed into the system's onboard navigation. How is this helping to improve driver concentration or blood pressure!?


Radio! Try using the voice commands to find an XM Radio Channel, much less a category such as "News" or "Country" and have it scan the available listings! Here's a hint, you can't (and if you can, it will require the patience of Job and a careful reading of  the manual dedicated to this system which is intended to keep you from getting distracted while driving!)! Pull over and start tapping, that's the only safe way to change channels.

Having a conversation with Siri can also be amusing. At times, people go out of their way to have funny conversations with "her." Just Google "siri funny conversation," or do the same on You Tube and there are countless examples. However, Siri gets it! Which is to say, Siri understands more often than not and contextually is much better than any other voice activated system. I think asking my car to "Call my daughter" is more likely to get the windshield wipers to turn on and the fog lights to turn off than to initiate an actual 'phone call To Rachel. Siri takes this same request and politely tells me she is, "Calling Rachel."  And as for transcribing text, Apple's servers are getting more and more of this right with each passing week. My car doesn't understand, "Call," or "Go To," much less complete sentences, paragraphs, and punctuation!


Some automotive companies are working to directly integrate smartphone technology with their onboard systems. This is a paradigm of intelligent design; smartphone operating systems iterate several times faster than car systems (for legal, design, and other reasons). Why not let your iPhone just bond with the bigger, iPad like, screen in the car and use the best of both worlds?

There are issues with this melding of technologies...Which phone systems should the car companies utilize? Is it "possible" that a phone issue could degrade critical functions of the vehicle's operation? Economically, can you charge the same amount for  this convenience as a consumer might be willing to pay for a full-blown, technology package if the customer has to bring "the brains" to the party? I would pay a premium, would I pay the equivalent of three top of the line iPads ($3,000) to Acura, or any car company, if all they are providing is a built in "dumb terminal"  a cheap microphone and access to the sound system's head unit? Probably not....

Still, why fight progress? I would much prefer to press the steering wheel's talk buttons (and there are actually four controls for the voice/call system) and get Siri on the line, than Wynona (my affectionate name for the nice but ignorant female running the show in my car. Siri can actually read me text and email (Wynona can't); Siri can add a meeting to my calendar (not Wynona); Siri already has access to my entire Contact List and can dial or send a text with great accuracy (Wynona can't even find my contact list half the time). I can set reminders with Siri and so much more....

My current dream car is the Tesla Model S and not because I am a particularly "green" individual or because I stay up at night worrying about global warming (quite the opposite).  The great interior and touch screen of the Model S which enable tablet and smartphone interaction are as enticing to me as the 435 horsepower, 0 to 60 in 4.4 seconds specs and 300 mile range with optional battery.



Voice enabled systems are rapidly improving. We need companies to quit making closed systems and begin utilizing the best of consumer devices in smarter ways. I think Tesla and Ford are on the right road, here's hoping others will follow.

What are your experiences with in car voice systems? As always, I welcome your comments.....

I currently particpate in the Amazon Associates Program and certain item links included within this post may tie to this affiliate program.

Companies:  Apple, Honda, Garmin, Tesla

This commentary is not meant as an endorsement of any company or to provide financial advice.  If the author has any financial interest in any company mentioned at the time of this article’s posting, it will be explicitly noted. I welcome feedback and comments. 

All rights reserved @2012, Music Row Tech (MRT). Any reproduction without the author's consent is prohibited.

One Purchase Which Won't Wait For Amazon!

I run my small business out of my home. Since a significant part of my expertise lies in using and configuring small office network equipment and making the newest tablets and smartphones "play nicely" with your business  and personal needs, reliable network access is a must. One of the most critical and often forgotten pieces of the SOHO network is the router.

Many people "just want it to work" and have only a passing understanding that the router, cable modem, and possibly a network switch (or several) are actually distinctly different pieces of hardware and perform interrelated, but not duplicative, duties. The "I just want it to work crowd," often has to be reminded where these blinking boxes reside and when network problems arise (and they do as surely as the sun will set tonight in the west), a careful review of those LED indicators is always a good place to begin the process of isolating the immediate problem.

Ironically, as I posted on Google+ a day or two ago, I swapped out my leased Comcast cable modem for a newly purchased Motorola unit this week. If you haven't considered investing in your own cable modem, I encourage you to do so. This Motorola 6121 cable modem is a good unit with all the technical specifications you need to worry about for the next two to three years (and get yourself a 150% or better ROI on the switch). I did this primarily on principal. My review of Comcast charges was an eye opener (which is probably why I avoid studying this bill, like so many necessary but unpleasant chores in life). That $7/month fee gnawed at me until I could get a new, superior, modem in place and delivered the old POS ("piece of sH*%) hardware to Comcast's local headquarters (they don't make it "easy" to return overpriced equipment and get it off your bill!).

After a pretty painless set up, two days passed. I don't know if it was the network gods playing a trick, or if my Linksys router was "mad" because it didn't get any upgrade, but low and behold last night it gave up the ghost. Now routers in my SOHO office (and I suspect your office and home!) are 24/7 workhorses!

Routinely, I have three or more computers, an iPhone, an iPad, a Kindle Fire, four (4)! TIVOS, all making use of my network all the time! If I have a client, guest, or daughter in the house the "network count" goes up even further!

My home and attached office are of fairly new construction (less than three years old) and my builder was a believer in wiring for today and tomorrow (or he was building this place with me in mind!). Every room, save bathrooms, has high quality Category 6 ethernet cable installed. There are no traditional POTS telephone lines, but they aren't needed or wanted. He also pre-wired  the ceiling in the livingroom for  5.1 speakers and some other thoughtful touches (which helped sell this place! I hope any General Contractors out there are listening!).

Still, none of this matters without the router as your network's traffic cop. It has to make sure all that data which streams in and out of your home or office, get to the right internal or external network address as quickly and efficiently as possible. Wireless traffic streams in from phones, tablets and other devices, competing with wired requests for other data. If you have a DVR or two, you may also want to transfer a movie from one room to another. This is an increasingly common convenience. When we start moving around HD video content, even from within our home between televisions, this adds real overhead to the network. Oh and if you are using VOIP (Voice Over IP) for your traditional telephone calls, either through your ISP, or some third party company such as Magicjack, your router has to keep your conversation flowing, and this data, while juggling all of the other traffic.

We expect all of this to happen all the time (and "it should just work"). My newly defunct Linksys router made it about three years of pretty much tireless service. In fact, after being properly configured, I haven't had to do much over the years to keep it working according to specifications. For most home and SOHO users, this magical "box" will run you a C note or less. Like many things in life, getting the least expensive  available router may not prove satisfying or economic over the box's two to three year lifespan....

Which brings me to some takeaways:

• Router technology improves just as most SOHO tools through the years. Like other infrequent purchases, you may not realize this or really know what is important when you are back in "the market" for a replacement. For most, including even network "guys" like me, buying a replacement router for the house and/or office isn't a leisurely event. I will buy almost everything in my life through Amazon and because of Amazon Prime, I can get most of the world to my front door in two days (and for $3.99 more, next day delivery) but that isn't fast enough when the network world many of us rely upon grinds to a complete halt! Best Buy here I come!
  
  So read on a bit longer to consider these points now, rather than when studying a potentially bewildering array of boxes in the aisle of your local electronics store:

• New routers have new software baked in. This is called firmware by techies, but you just need to know this is a layer of software which allows you to configure this box and for it to do its job more efficiently (and safely). Even if you have a faithful, but aging router, you often can update the firmware and perhaps get improved efficiency and more network security (which is always a good thing)!
  
  If you haven't ever thought about this oil change for your router, Google your router's name, model and firmware. You are likely to "get lucky" and be directed to a page explaining the newest version and how to install it. If you are nervous, get a knowledgeable, friend, family member, or (gulp) IT guy, to lend a hand.

• Even if you buy a new router and install it today, check the firmware, there may well have been an update (or two) since it left the manufacturing facility!

• Wi-Fi isn't all the same! Newer routers which have wi-fi capability tend to have better antenna configurations (think improved range and speed). They also may function on more than one band. This can get technical, but consider buying a multi-band router (2.4 and 5 Ghz) which allows your current, or future, devices to access your network using different, often less congested, frequencies. Even your neighbor's microwave is trying to use the 2.4 Ghz spectrum! You will pay a bit of extra cash now, but remember you are going to expect this thing to play traffic cop without a coffee break until 2015 or so (in this context, what's an extra $25? The router doesn't ask for, or want, a Starbucks coffee break).

• On a related note, there is really no reason to buy any router today which isn't Wireless-N ready (even if some of your current hardware isn't up to this speed. This is an established standard today and only the least expensive wireless routers won't have this option.

• Change the password! Default passwords are a very real security risk on routers! Network guys like me know the default user names and passwords for all the big brands, Linksys, DLink, Netgear, Belkin, they all make it (very) easy to access your router's firmware out of the box. Stop, drop, and change this password immediately! The "bad guys" love default passwords and it is often a sign that other security is lax, or non-existent, which is a green light for mischief (or worse).

• Most newer routers allow some form of Guest Mode. It is great to let all your friends enjoy your wi-fi when they drop in. I just don't want someone inadvertently getting into my business and personal files while looking for that funny You Tube video. This feature keeps your friends and family happy as well as you and your data.

• While you are at it, change your wi-fi SSID (stop it from broadcasting entirely) and turn on wi-fi security (WPA2 is a good choice on any new SOHO router). If you don't know about this stuff, or are uncomfortable researching this yourself. Get some help. Newer routers, including the Cisco/Linksys E4200 I  just set up, have vastly improved "set up wizards." This software won't tweak all the settings a pro would adjust, but these tools are much better at getting you up and securely running than even a couple of years ago! (Believe me, Cisco and other appliance providers (think of what the term "appliance" means in your world!) wants to spare you and them from long technical support calls seeking help configuring this rather complex networking hardware. They have every motivation to makes these wizards smarter.)

• Don't buy any router which isn't IPv6 enabled! This too is a techie issue but it will affect everyone sooner rather than later (and before you want to toss this purchase in the scrapheap)!

• Strongly consider buying routers with Gigabit Ethernet ports (if you need ports on your router). In fact, don't buy any switches, routers, cabling, anything, which isn't gigabit enabled! This is where SOHO network has gone (note I didn't say, "is going"). When you start moving large files, like those HD movies we were talking about earlier, Gigabit enabled wiring makes a noticeable difference in performance.

• Consider buying a router with a USB port (or two). Increasingly, NAS (network attached storage) is being used in homes as well as businesses. These hard drives may hold the family music collection, videos, and more. Getting one of these additional boxes securely and easily added to your network is easily worth the extra $5 bucks you are likely to pay for this feature today. This is also a great way to add the new MagicJack Plus to your house. (This item's biggest feature is allowing you VOIP phone access without leaving a computer running 24/7. More on this topic in another post.) 

There are plenty of other features to consider, but focusing on these big issues will steer you in the right direction. Don't rely on "the kid" at your box store to know all of these nuances. S/he is probably not a networking expert and even if they claim to be (flag!), they don't know your specific needs. Oh, if you are tempted to use Red Laser or Amazon Price Check to see if you are getting the best deal possible while you are waiting to check out, don't you will only be frustrated! Do your homework now while you have internet access! and just satisfy yourself that getting your networked life back on the road is worth a little premium (after all, Best Buy needs our business too from time to time).

Anyone in the market for a slightly used, barely functional, three year old Linksys router? I have a deal for you!

As always, I invite your comments and thoughts below! If you like this article, please plus one, share it on Facebook with your network, Tweet it, or find another way to spread the word.

I currently hold investment a position in $AMZN. I currently particpate in the Amazon Associates Program and certain item links included within this post may tie to this affiliate program.

Companies:  Amazon, Belkin, Best Buy, Comcast, Cisco,DLink, Facebook,  MagicJack, Netgear

This commentary is not meant as an endorsement of any company or to provide financial advice.  If the author has any financial interest in any company mentioned at the time of this article’s posting, it will be explicitly noted. I welcome feedback and comments. 

All rights reserved @2012, Music Row Tech (MRT). Any reproduction without the author's consent is prohibited.

Impressions after a Month With Cloud Music Players.....

Here's another new Apple service I wanted to like, iTunes In The Cloud. I have been testing Apple's Match Music for about four weeks. I evaluate this service against Google's cloud music offering which I have also been using for several months (while in beta and now in its public release format). The two company's products have much in common as well as some distinctive differences.

Amazon also offers a cloud locker music service and while I am a huge fan of this company and routinely buy music through Amazon because of its high quality and competitive pricing, I haven't put Amazon's cloud service through real world paces. It appears that Amazon's offering more closely resembles Google than Apple. However, while Amazon offers a free, 5 Gigabyte, account, you can get an account which allows for unlimited music storage for $20/year. This is a terrific deal! For those with truly mammoth music catalogs which exceed Google's 20,000 file limitation (free) Amazon may be the service for you. Not surprisingly, Amazon also works with the popular Fire Kindle tablet which is built on a highly customized version of Google's Android operating system.  The average user should probably rely on just one of these services and there are a number of factors which may influence your decision.

If your world is Applecentric, filled with iDevices, the iTunes in The Cloud Match service would seem the obvious choice. Unfortunately, I can't give an unqualified endorsement. Apple allows you to store up to 25,000 songs plus unlimited iTunes purchases for $25/year. The company's agreement with major recording labels permit it to  store high quality copies of  songs on their servers rather than forcing you to upload all of your songs (as Google and Amazon require), a process which can take several days for larger libraries.

Apple scans your local iTunes library and matches songs on your library against its catalog. Songs which are not available directly are then uploaded to Apple's servers. Even with large iTunes databases, this is a fairly fast process. As a side benefit, if  portions of your music were ripped from CDs, or purchased, at a lower quality than Apple's files, your library instantly benefits from the 256 kpbs versions stored on Apple's servers. There are any number of reasons why some of your music files may be of lower quality. For many early adopters, an effort to save hard drive space (which was a far more precious resource at the birth of mainstream digital music storage) promoted compromises. iTunes itself has been around since 2000 and many people have been building and refining their music libraries for a dozen years using this repository. Some of us experimented with MusicMatch and other players in the 1990s when the idea of saving thousands of songs in uncompressed, lossless, formats was unthinkable. Which brings me to another caveat. If you do have some songs saved in higher bit rate formats than exist on  Apple's servers, you cannot substitute your copy for Apple's version, so there is a downside quality trade-off for some. If you have an interest in using the service to upgrade your older digital recordings, this can be done by following this tutorial.

Additionally, playlists which you may have on various iDevices are supposed to sync across your "Apple world" allowing you access anywhere. For many, this is a compelling feature since many iTunes users have invested significant time and energy in compiling playlists. This feature is one of several which have I have been unable to fully enjoy. While static playlists seem to synchronize across devices, smart Playlists (those which are designed to capture dynamic music groups such as, "Recently Added" and "Top 25 Most Played") either don't show up across devices or appear completely broken. For instance, my "Top 25" playlist in iTunes correctly identifies the songs with highest play counts, but on my iPhone 4S, this playlist includes random titles from my large library. For those individuals who use iTunes star rating system, play counts, and other tools to curate their collection, this is a serious shortcoming to the Match service. There are numerous online discussions on this issue. This Apple Support discussion has received over 6,200 viewings as of this writing, so I am not alone with this issue. It is really unforgivable for Apple to not properly store and use this metadata which has been the reason many people have stuck with the aging iTunes software through the years. 

Worse, my iPad 2 has never worked with Apple's Match service! Upon set up, I was informed, "This device is already associated with an Apple ID. Your device can only be associated with one ID every 90 days. You have XX days before you can change IDs." Well, I thought this device was tied to the same ID as my iPhone, iTVs and iTunes accounts. Apparently, I don't know "what ID" is associated with my iPad and as of this writing, I have 24 more days before I get a chance to try again  (and if I don't enter the proper authentication, I presume the 90 day counter will reset). I was informed of this issue after the software erased all music on this device. I can use a USB cable to add back music files manually, but at the very least, it is bad design to delete data before announcing a failed install.

I suspect this ninety day limitation is a concession to the publishing industry. Nevertheless, as a user who only wants access, this restriction during initial set-up of the service seems very draconian. Apple insists that you use a fully qualified email address for this service. If  you have an  Apple account tied to a user name such as "rwachs," you will have to create a NEW account using a verified email address (e.g. rwachs@musicrowtech.com). This is true even if this email account is tied to your Apple account and has been validated. This may not be an issue for people new to Apple's world, but the opportunity for problems such as those I have encountered are very real. 

Apple actually downloads individual songs "on demand" to your device. I have found this process to slow, and at times stops, music streaming altogether. This issue can range from a mild annoyance, to a real aggravation (for instance when your music stream halts while on a distance run). In fairness, this issue could be the result of AT&T's 3G network in my area, Apple's servers, or some combination. However, I have found these problems more often with iTunes in The Cloud than using Google's competing product.

Speaking of mobile, Apple's service is limited to iDevices running the newest version of iOS software (5.X). If you have other devices running Android or another OS you wish to use, this service is not going to be a good solution. Google and Amazon have browser based applications in addition to PC based music managers which are needed for downloading and uploading content. This uploading/downloading process isn't well automated and needs some fine tuning.

While Google's app does access a local iTunes library if it exists, Smart Playlists don't make it to the cloud. Also, adding new music is something of a kludgy experience requiring a somewhat unintuitive manual downloading of the files and then importing this content into your local iTunes library. Google does have a good online music store with very competitive pricing (but less available content than iTunes). Like many things in the Googleverse, I expect the shopping experience to improve with time (and the company is committed to giving away lots of music). Recently, selected new release albums by artists such as ColdPlay and Maroon 5 were available for $4.99, less than half the retail found through iTunes.

The iPod was truly revolutionary when it was first introduced. This device marked Apple's rebirth and it has successfully bested all competitors. Sony's Walkman, which once dominated the mobile music universe, is now a footnote. I had high expectations for iTunes in the Cloud. In many ways it is the successor to that wonderous iPod experience those of us around for the first product introduction recall; iTunes In The Cloud has a proud heritage and big shoes to fill. All of these services are in their first incarnation and are likely to improve with age. Given Apple's longstanding history with music and our lives, perhaps I expected more from this first release.

As it stands,  I give Google the edge for pricing (free for 20,000 songs and aggressive store purchase pricing), cross platform functionality and superior syncing across all devices. I do wish Google would make additional meta data from my iTunes library such as play count and star ratings (versus the more limiting "thumbs up" and "thumbs down" choices which have to be set for each song after uploading)  available. Given Google's ability to work with data from a wide range of  applications, I am surprised by this omission and hope this changes in a future release. Apple's initial screening and matching service, while imperfect, is superior to Google's "upload it all" requirement which could be a complete deal breaker for anyone with restricted internet access.

None of the big three have gotten the formula perfect the first time round, but there is no doubt this is where music services are heading as the push to compete with Spotify, Pandora, and other pure streaming companies heats up.

Here's hoping someones  "2.0"  makes the dream of listening to your own music anywhere, anytime, a reality. I don't know how many copies of some classics in my past I have bought-- LP (vinyl for those of you under thirty); eight track (look it up in Wikipedia if you don't know this reference); cassette; CD, digital. Some of these formats got multiple purchases. I realize many in the music publishing world have not fully embraced the inexorable movement to digital, increasingly ubiquitous, content.  After more than a half dozen purchases of the same content,  it is about time that I should be able to play James Taylor's, Fire and Rain from the cloud when, where, and with any device. It is in the best interest of every element  of the musical creation and distribution chain to let the music play!

Have you got an experience with these services you would like to share? I invite your comments. 

I currently hold investment positions in $GOOG and $AMZN. 


Companies: Amazon, Apple, Google, Pandora, Spotify 


This commentary is not meant as an endorsement of any company or to provide financial advice.  If the author has any financial interest in any company mentioned at the time of this article’s posting, it will be explicitly noted. I welcome feedback and comments. 

All rights reserved @2012, Music Row Tech (MRT). Any reproduction without the author's consent is prohibited.

Is TIVO Becoming a Footnote in the DVR World?

I am an avid TIVO fan! Not DVRs, TIVOs! Over the years I have purchased four Tivo units, four lifetime subscriptions and several additional boxes as gifts to friends and clients. This is a big personal investment in one company's vision.  My home still has more TVs than Tivos and I find myself annoyed when I occassionally use a box without the complete Tivo experience. I even find myself wishing my car's XM satellite radio offered the instant pause and rewind functionality when I am listening to talk radio and my attention is drawn away from the discussion. (I am aware that XM has some portable systems which offers some of this functionality, but it certainly isn't baked into my car's system.)

Tivo has entered our lexicon in the same way that Kleenex and Xerox have become generic terms. Tivo created the market for DVRs. So what has me upset? Here's the "news" out of CES from Tivo. There are plenty of details reported by Engadget and others, but in broad brushstrokes, Tivo has announced:

• An Android capable remote app (nice, but overdo).
• A (much needed) HD update for the Tivo Premiere's user interface
• Premiere-to-Premiere multi-room streaming (another nice update but this feature effectively leaves behind even users of the prior generation Tivo hardware) and, 
• Hulu Plus integration.

What's not to like? CES has long been considered one of the annual events for showcasing new hardware. In this context, Tivo's offerings are incremental improvements, not headline grabbing revelations. No new hardware; no two way communication solution between Tivo users and cable companies; no groundbreaking partnership announcements. Nothing to make me go, "wow!"

Compare Tivo's announcement against DISH network's offerings (aka, "The Hopper and Joey"): A new DVR powered by a powerful Broadcom chip capable of simultaneously recording six satellite streams on a two terabyte internal drive (this is the equivalent of about 2,000 hours of programming).  Tied to this new, gargantuan, DVR, are satellite controllers (Joeys) which allow simultaneous use of all the DVR's functionality in a total of six locations! The Kangeroo may well supplant the iconic  Tivo  character as the mascot of choice for couch potatoes this year.


Compare Dish's new offering to Tivo's top of the line Premiere Elite which is capable of up to four simultaneous recordings, capturing about 300 hours.... This hardware costs $500 PLUS a monthly service charge of an additional $500 "for life" (of the box) or $19.95/month; that is a cool $1,000 per unit! Where's Tivo's "Joey?" Well, there isn't an equivalent. Tivo allows streaming across your home network but you need a second, full featured,  full cost, Tivo box to view the content.


Then there is the content itself. Without diving into the cable versus satellite pros and cons (and I know there are passionate feelings on both sides of  this discussion), Tivo relies on cable providers to feed its boxes. Comcast, as an example, now charges about $90 a month (plus taxes, etc.) for a basic, High Def, cable package. Comcast also charges a monthly fee for each multicast tuner card you "rent." This adds another $8.50 per Tivo (or $17 for a dual tuner Tivo such as the Premiere Elite-- each multicast tuner can drive two video streams) per month! Multiply this by a six room set up and you would have an additional $100/month is hardware rental fees!

On the flip side, Dish is announcing $79.99 / month for Dish + Broadband options at CES as I write.  Comprehensive hardware and installation pricing isn't available as I write this article, but Engadget, a typically reliable source is quoting,  Installation prices will start at $99, with bundles starting at around $80 per month.  I suspect  there will, at minimum, be some type of monthly surcharge for each Joey and possibly even a one time, up front, fee for the Hopper (which may be offset or waived with the completion of a multi-year bundle contract ).

Any firm comparison of pricing is a bit unfair given Dish hasn't published formal rates. However, I can say that for comparitive purposes, Tivo would require a $6,000 investment for six rooms ($500/unit plus $500/unit lifetime service) BEFORE paying for content!! Really!? Now diehard Tivo fans may argue that Tivo's interface has some bells and whistles lacking in Dish's design. Conversely, Dish afficianados can point to integration of Sirius Satellite music, Prime Time Anytime, and other tie ins as being superior. Tivo has valiantly defended its admitedly wonderful user experience which many have tried to emulate (AT&T!) and Tivo triumphed already in some of these legal, patent, skirmishes. But one thing is sure, the user experience is converging and Tivo's business model of separating hardware, "software/data" (guide information) and content makes less and less sense from consumers' perspectives.


In terms of sheer capacity (tuners, recording capability, room coverage) Tivo is clearly in second place. Given Tivo's pricing (and  yes I am using the top of the line unit as comparison, but only the Premiere Elite comes "close" to the Hopper in terms of functionality), I could pay an $100/month premium over five years for the Hopper, five (5) Joey satellite units and menu/guide content! I suspect Dish will make the economics of this choice painfully easy for those analyzing with their pocketbooks. I will be surprised if the differential doesn't end up in Dish's favor by $5,000 or more over five years!




Tivo doesn't even offer long time fans like myself an upgrade path! No transfer of "lifetime" service to new hardware, no "thank you" for over ten years of acting as an unpaid salesperson, no recognition for buying an additional five or six boxes over the years as gifts (and adding to the company's user/fan base). Nada.

Tivo's stock has shown some upward activity of late. However, it has been trading in a relatively narrow range for months. The company actually has a market capitalization 10% of Dish. (1.29B versus 12.9B). While the two stocks have shown a high correlation in trading over much of the past year, there is a distinct divergence over about the last month with $DISH  showing a more bullish trend and positive return (please see nearby charts).


Tivo's lack of more dramatic announcements at CES, coupled with uncompetitive pricing, make this stock look more and more like Kodak-- an iconic name, an industry founder unable to adapt and compete in a changing, digital, world. Both companies may now have more intrinsic value in the various patents they control than the products and services they offer consumers. Both companies' futures may well end in acquisition for patents or bankruptcy (another reason to think long and hard before buying a lifetime service agreement for that "next"  Tivo appliance).  Sadly, AT&T's recent settlement agreement with Tivo of $215 million has probably done more to spur interest in $TIVO than the recent CES announcements.

Based on recent events, I believe the next  DVR in my casa will not be a Tivo. There are so many alternatives and more and more users are considering cutting the cord from traditional bundled media packaging altogether. Microsoft's CES announcement of Xfinity availability via the xBox offers yet another potential means of bypassing a Comcast digital set top box or multi-stream card. I hate to consider giving up the great user interface and other Tivo features, but the company seems to make the decision easier and easier. As for an investment, I see a short play and a long position....


I currently hold no investment positions in $TIVO, $DISH or $CCS. I do not use DISH services but am a Comcast subscriber and long term Tivo customer.

Companies: DISH; TIVO; Comcast


This commentary is not meant as an endorsement of any company or to provide financial advice.  If the author has any financial interest in any company mentioned at the time of this article’s posting, it will be explicitly noted. I welcome feedback and comments. 

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