LTE iPads, More Mobile Data: Who’s Going to Pay for All This?

Two stories in the news today — the potential of LTE-enabled iPads and new projections for mobile data growth — seemed to me to be closely related and both lacking a final explanation: Who’s gonna pay for all the new toys and bandwidth?

As sports fans know, the Apple iPad and its imitators are great devices for watching sports on the go. The screen is big enough to approximate a TV experience, and the device is light enough to not be a bother. And the 4G LTE networks from Verizon Wireless, AT&T and soon from Sprint will make mobile video better thanks to faster download speeds and overall better behind-the-scenes technology.

But my question again — who’s going to pay for all this? At what point do we decide we’ve got enough devices, and that we’re not going to pay premiums just to get content whenever we want it? Are the devices and services so alluring that consumers will simply find a way to budget for them, or are they giving other things up from their disposable income buckets? Or will we see a backlash soon?

For all the heat the two stories have generated in the tech news world, my guess is that both are slightly overrated. Since LTE data contracts still remain fairly expensive — right now Verizon is charging $80 a month for 10 GB of data, its highest plan for tablets — I think folks might buy an LTE-enabled iPad for the convenience but will probably go for the lower-priced plans and use Wi-Fi whenever they can, especially when watching things like sports. Some smart guy already reported that Verizon’s 4G LTE phones aren’t big sellers because there isn’t anything compelling enough to make people pay a premium for the service. I think the LTE iPads will follow a similar lukewarm adoption curve.

On the mobile-data projections there are already some signs that Cisco’s predictions have shot past reality; AT&T, for example, said that its most recent figures showed data use growing more slowly than previously predicted. With cellular services prices expected to remain constant or rise even higher, my guess is that people may want to consume mobile data at the rate Cisco predicts but budgetary pressure will keep it from happening until lower-cost Wi-Fi networks reach out to more places than coffee shops and airport waiting lounges.

What will be really interesting to see is what happens if the LTE iPads fly off the shelves and crowd the networks, bringing back the original iPhone network jams. Think that won’t happen? Want to bet on it?

Super Bowl’s Social/Mobile Angles Don’t Move the Needle

My quick post-game take on the whole “social Super Bowl” angle is that I don’t think any of the ad campaigns really moved the social-networking needle. Though I missed part of the first quarter I didn’t see any ads that asked for an online audience interaction, which might have been fun. And the mobile game platforms, both NBC’s website broadcast and Verizon’s NFL Mobile app, were so far behind the live action they were useless as a “second screen” for viewers also watching the television.

A quick kudo to Twitter for not crashing in what was probably the most-active day ever on Twitter (which is kind of a meaningless stat since every big event for the foreseeable future will become “the biggest” as Twitter becomes more mainstream and adds more users). But I have to give a conditional “fail” to NBC’s online broadcast of the game, which was anywhere from three to four plays behind the live action, even showing commercials while the “real” game was live.

Though I understand why technically the online show might be slower, the wide gap made it impossible to keep the laptop (or tablet) open while watching the game on TV, eliminating the whole “second screen” thing that the online broadcast was supposed to enable. Plus I was underwhelmed by NBC’s multiple-choice camera views — they were uninteresting and pretty much blah compared to the rapid-fire screen switching you get from watching professional broadcasters produce a game live. So maybe that whole viewer-choosing-the-camera thing is overrated.

And Verizon’s NFL Mobile app, while glitch-free over in-house Wi-Fi and a 4G cellular signal, was still anywhere from 23 to 28 seconds behind the live action, also rendering it useless except maybe for trips to the bathroom. But with all the commercial breaks that’s hardly a concern during the Super Bowl. Maybe these alternative platforms will be more important for events with multiple things happening at once, like the Olympics or a golf tournament like the Masters. And maybe advertisers will become more bold and try more live interactive ads in the future. But for right now the “Social Super Bowl” didn’t live up to its advance billing.

UPDATE: As we thought, the Twitterers were out in force:

In the final three minutes of the Super Bowl tonight, there were an average of 10,000 Tweets per second.

@twitter

Twitter

Pre Play Sports Scores Subway Sponsor Deal for Super Bowl

Screen grab of a typical Pre Play app, where you predict the play before it happens.

In a field that’s going to become extremely competitive, predictive-gaming startup PrePlay announced a sponsorship deal with sandwich giant Subway, just in time for this Sunday’s Super Bowl.

If you’re not familiar with predictive gaming, don’t feel alone. It’s a new category of apps that allow smartphone or tablet users to challenge each other in trying to predict play-by-play outcomes of sporting events as they are happening live. MSR identified several of the players in the space last year, but with Subway sponsor dollars in its pocket Pre Play has clearly done something to attract attention. Even so, the company is using the Subway deal to “re-launch” its app, usually a sign that the initial iteration didn’t quite catch on.

The iOS-only Pre Play app can be freely downloaded from iTunes. Then you assemble a group of friends or family members with Apple devices and can compete to see who can better predict plays before they happen, earning points in the process for correct calls.

To perhaps better explain how it all works, here’s a Pre Play demo video. Maybe this is better than me screaming “FAKE! FAKE!” at the TV screen on every field-goal attempt. At least my neighbors might be happier.

Apple has Record Quarter, iPhones, iPad Sales Soar

Apple continues to see strong sales for its mobile products as iPhones and iPads witnessed record sales, as did its Macintosh computers, in its fiscal first quarter that ended December 31, 2011. The company had quarterly revenue of $46.33 billion and a quarterly net profit of $13.06 billion.

It is interesting to note that in its product lineup Apple’s computers come in a far third place in terms of unit sales with only its iPod platform showing a decline, most likely because its iPhones, with their large storage capacity can easily double as a dedicated music player.

The company sold 15.43 million iPads during the quarter, a 111 percent unit increase over the year-ago quarter. The Company sold 5.2 million Macs during the quarter, a 26 percent unit increase over the year-ago quarter. Those figures are all time highs for the company. It only sold 15.4 million iPods, a 21 percent unit decline from the year-ago quarter.

Another fact that stands out from the results is that Apple admitted that its tablets are cannibalizing sales of its Macintosh computers, even when it has a record setting quarter for the computer.

It will be interesting to see how this phenomenon carries over to the Intel-based PC space. Will the ultrabooks stave off declining sales? If not Intel had better ramp up its push to establish its Atom processor in the tablet and smartphone space.

Apple also reported that it did not believe that the Kindle Fire, and other smaller form factor ebook readers that also had very strong holiday sales, had any material impact on its iPad sales.

While analysts had expected a strong quarter from the company some admitted that they were staggered by the results and predict that the company will be able to maintain its momentum going forward, at least in the near term, as it has just started to expand into the Chinese market. It is also expected to release at least one new generation of iPads as well as a new iPhone later this year, moves that should also help see a surge in demand for its products.

Apple Makes Big iPad Education Push — Sports, Social Media, Hardware Developers to Benefit

Apple is returning to its roots with its new education push announced today, only this time there will be no floppy drive or large beige computers on students desks with a tangle of wires connecting everything, but rather tablets and wireless communications.

While this will most likely mean great news for education content developers as well as students, it will also be a boon for other markets as well, ranging from Wi-Fi equipment manufacturers and the entire world of sports and sport content development.

The news

Apple is back in the space, but this time as a supplier of educational material, primarily books. It has unveiled iBooks 2 for iPad, and claims that it will lead to a new type of textbook for students.

The key to iBooks 2, which is available in its own section at the iTune store, is that it will enable the creation of materials that will feature interactive animations, diagrams, photos, videos and will provide an easy to use navigational system.

The company has already enlisted several educational publishers including Houghton Mifflin Harcourt, McGraw-Hill and Pearson. Also teachers can create their own books for class using the iBooks Author tool.

For students the advantages are obvious, lighter backpacks since all of their text books can be carried in one small device. The cost, which Apple said will be in the $15 range for many books, will help with their expenses and they can be updated in real time to reflect current events or current ideas on a theme.

In addition to the iBooks 2 Apple has also released the iTunes U app that makes available a huge catalog of free educational materials, 20,000 educational apps as well as a wide variety of books that are used in school curriculum.

This is just the latest step from Apple in its effort to reestablish itself as one of the premier hardware and software players in the education market. It has been courting educators since it released the iPad. Apple has already seen a growing adoption of the iPad as a teaching tool in other areas including the NFL.

If Apple continues to gain share in the education field, as seems very likely at this point due to the poor showing by most of its rivals in the tablet business, this success will have far reaching implications for other companies as well.

Benefits for others

First and foremost it is most likely that the huge bulk of these iPads will only use Wi-Fi, since having two cellular bills is probably a bit much for the average student. I do not believe that most schools are prepared for a huge increase in the number of Wi-Fi users this will represent, as well as the huge increase in volume.

So hardware providers in a number of technologies from Wi-Fi hot spots to backhaul equipment providers will all see increased demand for their products

Secondly students will not just dedicate their time with the tablets to work. Aside from social media sports plays a huge role in many students’ lives. With ESPN, CBS Sports and others now streaming games a student can now be n the library and still watch the game.

The huge amount of options made available by the Australian Open for interaction with remote fans looks to be the wave of the future. Athletic, as well as theater and any other group on campus can now make interactive pitches to students as well as make video of past performances and streaming video of current games available on line.

This should lead to a demand for app and content developers to create interesting and informative programs that will grab and keep students attention. I expect that Amazon and Barnes & Noble to quickly follow suit since no one wants to leave such a huge and potentially lucrative market to Apple.

It will also spur the other Android tablet developers such as Samsung and Motorola to also develop solutions to get a piece of the pie. For customers this is great news because it will likely lead to price competition and a lowering of prices in an effort to grab market share.

Bleacher Report Adds iPad Version of ‘Team Stream’ App to Address Growing Mobile Reader Base

A screen shot of the iPad version of the Team Stream app from Bleacher Report.


To better address the nearly 40 percent of its viewers who access its content via a mobile connection, Bleacher Report is launching an iPad version of its “Team Stream” app today, giving fans a better mobile viewing experience for the “stream” of news, Tweets, story links and other info that Team Stream helps them create.

Having a version of the app available for the Apple iPad will give Team Stream users a bigger screen to negotiate between articles and content items, and will also provide a “personalized dashboard” on the home screen with national-topic headlines as well as stories about the topics and teams selected by the user.

While the Team Stream app has gained its share of kudos and credits — if you’ve never used it, it’s incredibly simple and powerful, bringing you a mix of professional media content as well as athlete- and fan-generated content on the teams of your choice — what was more interesting to us at Mobile Sports Report was Bleacher Report’s claim that almost 40 percent of the site’s overall traffic is now coming from mobile connections, showing that sports fans are leading the way to content consumption on the go.

Here's what the smartphone version looks like.

“We really saw mobile happen in 2011,” said David Finocchio, co-Founder and vice president of content and product at Bleacher Report, in a phone interview. According to Finocchio, Bleacher Report — one of the top sports websites — started the year with just less than 10 percent of its traffic via mobile. By the end of the year that number was almost at 40 percent, making the “mobile future” something that was here, now.

Inside the mobile traffic number, Finocchio said readers using tablets “grew faster than any [device] segment, and it continues to grow faster.” That fact made development of an iPad version of Team Stream a no-brainer. Now fans who currently use the desktop or phone versions of Team Stream to compile tweets, stories and other info from around the web (curated by Bleacher Report editors) will have a larger screen mobile option, the better to watch video replays or view pictures.

Bleacher Report, which now claims 22 million monthly unique visitors and picked up $22 million in growth capital this past summer, is carving out its own space in the ever-expanding world of sports media with a unique focus, one that Team Stream helps deliver: Finding the best content, which is often local in origin, and then arranging it in one place to make it easy for fans to find.

“Right now it’s just too damn hard to go out and find all that information by yourself,” Finocchio said. “You should be able to go to one place.”