It also appears that twice as many Netflix users view content on their mobile device (mobile phone or iPad) than their Hulu counterparts (6% Netflix users vs 3% Hulu).  This is certainly a number to watch going forward as mobile devices and their cellular data networks continue to evolve.

Another interesting point is the fact that 1% of Hulu users report watching their service on their Apple TV, although only Netflix has an app installed on the Apple TV.  Still, among Netflix users, Roku’s box is utilized five times as much as an Apple TV for Netflix viewing!  That makes the new Roku 2 something to consider, especially given it has both Netflix and Hulu apps installed.

It’s not a surprise given the content of Netflix and Hulu that Netflix users stream so much more movies, and Hulu streams so many more television episodes.  Those statistics merely reflect the strength of each subscriber service – with Hulu able to offer brand new television episodes the day after they are broadcast while Netflix is able to offer a selection of newer recently released movies.

Clearly this move by FOX is to ensure that paid subscribers have a significant benefit and advantage over viewers watching episodes for free.  In addition to Hulu Plus subscribers, the press release identifies that viewers who subscribe to the DISH Network will also have this advantage – and indicates that future distributers could be included (obviously a carrot for Comcast, COX, Time Warner, and others).

More interesting than what this signals (a potential trend of Broadcasters to limit online streaming audiences to paid subscribers) is the fact that DISH Network has brokered an agreement with FOX for this.  For those following what DISH has been up to, their recent acquisition of Blockbuster provides them with not merely a large number of brick and morter stores and video rentals venues – but also a new DISH division in dire need for an online streaming overhaul.  Blockbuster’s prior online model and strategy was sorely lacking and their recent defeat and demise in bankruptcy at the hands of Netflix who has a very strong digital streaming strategy clearly showed that Blockbuster was unaware of where the real battlefield was.  DISH Network apparently not only knows where that the true battlefield is in online streaming – but has a strategy already in place and being executed even as their purchase of Blockbuster finalizes.  This is intriguing because of the strength of brand recognition with their Blockbuster purchase.  DISH Network is likely building the needed foundation for a phoenix-like relaunch of Blockbuster online, in addition to their own online strategy.  It is possible we will see something new and potentially creative from DISH Network, which makes them someone to keep an eye on going forward.

VUDU is also available as an app built into the Sony Playstation, certain blu ray players and televisions, and through Boxee.  Boxee is both a device that you can hook up to your television, as well as software that is available for your computer.  Interestingly enough, through software you can add to your Apple TV (both old and new), you can also utilize Boxee and subsequently view VUDU content.

Given Amazon Prime’s recent efforts, it is not surprising (and actually somewhat progressive) to see Walmart.com stepping into this arena to compete for audience and viewership.  With Walmart providing competition against Amazon, Amazon competing with Apple, and more – it is quite reasonable to expect to see more options in the near future, as well as (hopefully) even better pricing.

The Roku 2 products do not need a PC to utilize, and they connect directly to your television and your wireless network.  Installation is as simple as that sounds – you basically plug in your HDMI cable (Roku will sell you one for $9.99 if you need one – which is an awesome price), plug in the power cord and you are ready to go!

In reality, there are three Roku 2 offerings now available – The Roku 2 HD gives you over 300 channels, free movie service from Crackle, and plays at 720p for only $59.99.  The Roku 2 XD gives you all of that but also can play at a full 1080p for $79.99.  The Roku 2 XS, which seems to be the best deal at $99.99, gives you all of that and an ethernet port for faster wired Internet speed, a USB port for Music, Videos, and Photos, and comes with a motion remote and the game Angry Birds built in!

With Netflix, Hulu Plus, and Amazon streaming built in, the Roku 2 looks like a very robust option for anyone looking for alternatives to their Cable or Satellite bill!  With a Roku 2 purchase, the only other thing you have to pay for is your Internet service and your favorite flavors of online content (i.e. Netflix – $7.99/month, Hulu Plus – $7.99/month, or live sports via subscriptions from the NBA, MLB, NHL, UFC and more).

Are you hesitant to sign up for Amazon Prime?  That might be understandable.  Amazon’s offering of Amazon Prime initially began as a way to provide benefits to their frequent shoppers.  Free shipping and other perks seem like the major offering by Amazon, and streaming movies and television seem somewhat like an afterthought.  Perhaps that works okay for them, as drawing people who are primarily interested in streaming movies and tv shows could have a halo effect that encourages them to shop more at Amazon and take advantage of all of their benefits.

Still, if you are not sure about Amazon Prime, it appears entirely possible to simply purchase/rent your movie or tv show without being an Amazon Prime customer.  TV shows can be viewed at $1.99 per episode (some may vary) and movies can be streamed for $3.99 – which matches up fairly well when compared to Apple and their iTunes store or Apple TV offering.

A late afternoon email just arrived directly from Netflix detailing their changes.

This pricing change is something that is not surprising, especially not for those who have been watching this seachange of technology allowing “cutting the cord” to Cable or Satellite.  Netflix added streaming initially as an “added value” feature to their existing business model (which entailed mailing of DVDs, not streaming video).  Their cost structure was established as such.  The previous bump in pricing was to find out if streaming video had enough legs to run on its own, and the take away to this latest change for Netflix is… hell yeah it does!

Having a streaming only service with its own price structure is a true recognition by Netflix that not only is streaming movies and television is viable revenue opportunity, but it is also a strong enough business to support the operational costs of doing so!  For those who are on the “cut the cord” side of the camp, this is a very good thing.

Now the moment of decision comes for Netflix users.  Do they pay $7.99 for DVD only service?  Do they pay $7.99 for Streaming only service?  Or do they feel more comfortable with both?

Undoubtedly it may take a while for everyone to think this through, which makes it nice that Netflix gives users currently getting both until September to decide if they really want to keep both or not.

The Netflix email follows:

We are separating unlimited DVDs by mail and unlimited streaming into two separate plans to better reflect the costs of each. Now our members have a choice: a streaming only plan, a DVD only plan, or both.

Your current $9.99 a month membership for unlimited streaming and unlimited DVDs will be split into 2 distinct plans:

Plan 1: Unlimited Streaming (no DVDs) for $7.99 a month
Plan 2: Unlimited DVDs, 1 out at-a-time (no streaming) for $7.99 a month

Your price for getting both of these plans will be $15.98 a month ($7.99 + $7.99). You don’t need to do anything to continue your memberships for both unlimited streaming and unlimited DVDs.

These prices will start for charges on or after September 1, 2011.

You can easily change or cancel your unlimited streaming plan, unlimited DVD plan, or both, by going to the Plan Change page in Your Account.

We realize you have many choices for home entertainment, and we thank you for your business. As always, if you have questions, please feel free to call us at 1-888-357-1516.

–The Netflix Team

This makes a great deal of sense for those who have Netflix or Hulu Plus.  For $8.99 a month with Netflix, or $7.99 a month with Hulu Plus, a viewer has access to great movies and television shows.  Netflix has an edge, as also indicated in the above mentioned study, and seems to be the preferred service.  Hulu Plus, on the other hand, has a great deal where viewers can watch all of the episodes of most current television programs – including the current season!  This is different than Netflix who can only offer a current television program’s previous seasons, and not the episodes of the season they are currently in.  However, Netflix does not have the breadth of current television shows like Hulu Plus offers. 

Perhaps the strongest point of the above study isn’t who is better… but it is that people have both!  For only $17 a month, having both Netflix and Hulu Plus seems to provide 51% of the people talking via Twitter a much different perspective than those simply considering “cutting the cord” on cable.  Instead, viewers of both Netflix and Hulu Plus seem to communicate that they actually have no further need of cable television! 

Is it possible to cut the cord on cable?  51% of users of the 7,095 tweets have both Netflix and Hulu Plus and

Cable companies might laugh at the suggestion they take a look at Radio, but are we laughing with them or at them?

Content providers face a dilemma in this digital age… their business model is built upon a system and flow that is quickly going out of style.  This is true for everyone, not just television, but also newspapers, magazine publishers, and even radio.  For Satellite and Cable businesses, they face a difficult proposition indeed – how can they remain relevant in a digital age?  In a wireless age? 

This is not to say that efforts aren’t being made.  In fact, many cable companies are desperate to change themselves, even reinvent themselves, in the change to digital.  Time Warner is a good example among those who are attempting to tweak their business model to be a “TV everywhere” model.  They have invested in development to bring their content and programming to mobile devices like the iPad.    The challenge Time Warner (and others) see is staying relevant.  For them, keeping the cord in place is incredibly important.  Why is this?  Their entire business model is established on content delivery via “cords” – and they strongly feel that if they can continue to add value for people, they will continue to keep their “cord”. 

It’s not a horrible idea.  There is a definite balance any big business needs to take before upending the foundation of their business model.  It is not something that anyone should contemplate before they have reached that place of balance… yet it is something they also cannot hesitate to do before being past that point and well into the tipping point!  What Time Warner may not realize is that tipping point is where they are at now. 

It is interesting that newer technology typically never looks back.  Newspapers were surpassed by Radio.  Radio was surpassed by Broadcast Television.  Cable companies might say that Broadcast Television was surpassed by Cable Television.  Satellite Television (and Radio for that matter) might say they became that next step further.  But all of them have been impacted (and surpassed) by the Internet.  The new Internet age has created a digital environment that brings them all together – in fact as content providers, the Internet has given them a new dimension in which they can duke it out with all of the newer upstarts.  Perhaps it is there where it may be prudent to take a look around.  In this case, it may be good to take a look back at Radio!

One of the content newcomers is Pandora.  It’s been blazing a great technology trail providing what amounts to customized radio with their streaming music capabilities.  Even so, it is too soon to count out Radio – and in this case specifically we can turn to Clear Channel as the example.  Clear Channel purchased Thumbplay earlier in the year, whose subscription music streaming service competed with Pandora.  Clear Channel certainly had made a fairly good swing at reinventing themselves with their iHeartRadio.com efforts.  Now on mobile platforms like the iPhone and iPad starting September 23rd, they jump into the music streaming business – going head to head with Pandora!  This is different than you might think.  This is an example of an established “big business” that isn’t just trying to tie up their audience and keep their business model – this is a big business adapting their model! 

Jumping back to Time Warner, by creating mobile apps that provide an “added value” for their subscribers they have committed themselves to a business model as they attempt to hold their ground.  Their apps merely extended content to existing subscribers and by doing so they hope to hold onto those subscribers.  Yet, this type of strategy does nothing to grow their actual business.  As efforts to hang onto what they have continue to lose ground for those interested in “cutting the cord”, Time Warner will find themselves in a downward cycle that will tend to accelerate.  Instead, Time Warner should take note of the strategy of Clear Channel… while Clear Channel attempts to remain relevant as one of the largest owners of broadcast radio stations nation wide, they have a complimentary strategy by launching customizable streaming music to compete with their digital rival Pandora.  Such a strategy helps them retain audience (who perhaps migrate to their online radio stations) while aggressively competing for new audience who is interested in customizable music streaming!

There is no reason any cable company couldn’t launch a similar strategy.  Why invest only on hanging onto “corded” subscribers?  Why not take that jump to creating a new business model in the world of streaming content?  Like Clear Channel has seen in Pandora, there is definintely a market for customizable streaming music.  Can Time Warner and its peers not see that Netflix and Hulu Plus have shown there is a fast growing market for streaming content?

Can Cable learn from Radio?  For some “big businesses”, looking back and trying to le

A cautionary tale: Using your cell phone data plan to "cut the cord" may leave a lot to be desired!

So you’ve made the decision to “cut the cord” to your Cable or Satellite television provider?  Your next few decisions may become critical to a good experience!  With so many wonderful commercials touting the enormous benefits of 3G data plans on cell phones, the stupendous speeds of 4G data, and who knows what glorious speeds will be talked about next, you could be considering an entirely mobile or mobile tethered approach to your pipeline to the Internet.

It’s a good consideration actually.  After all, you need to have a high speed Internet connection to truly “cut the cord” to your cable and satellite content providers, so naturally you may begin to look at both what you are doing on that front in contrast to what you are doing with your favorite flavor of cell phone.  If you are of the iPhone or Android variety, paying for Internet with an AT&T or Verizon data plan may come to mind when wondering about an additional expense for Internet at home.  Still, for what is available today, it’s probably important to resist the urge to consider using only your cellular data plan to accomplish this.

The best intentions aren’t always the best experiences, as evidenced by Dionne Walker’s recent situation!  Dionne outlines her experience attempting to make it down the cellular Internet only road in her “cutting the cord” blog on HometownAnnapolis.com.  Dionne chose to use her T-Mobile data service for her video content watching and quickly found herself exceeding her data plan!  Since recently even AT&T and Verizon have eliminated their unlimited data plans (except for you few lucky folks who have been grandfathered in and are holding onto that plan for dear digital life), all of the major providers now cap how much data you can access according to a tiered based fee structure.  In some cases, going over your cap will initiate additional charges!  Sadly, Dionne relented and reestablished her cord to her Satellite provider.

Cutting the cord can certainly take a multi-platform approach.  If you have an iPhone or Android phone, an iPad or Android tablet, you already know that you have full access to Netflix streaming and Hulu Plus streaming, as well as great apps like ABC.com and others.  You can get your television shows anywhere, on any of your devices – not just on your Internet or App equipped television or television device!  Each of your mobile devices likely come with their own mobile data plan – so be aware of your data capacity and your data plans.  The key is to spread your viewing enjoyment around – not merely center it on a single mobile device.  For today, the best way to “cut the cord” is to have high speed Internet into your home, in addition to whatever mobile devices you may enjoy.  For many mobile devices, they can take advantage of Wi-Fi while at home in range, and only utilize 3G or 4G data plans when on-the-go! 

Giving some thought as to how you consume your content may help you avoid some nasty pitfalls.  And Dionne made another very good point which applies just as well to high speed Internet at home as it does to mobile data plans – watching video with a slow Internet connection can be a frustrating experience!  Make certain that you have the bandwidth you need for the level of video you want.  If everyone in your house is going to be streaming video from your high speed Internet, you may find experiences will vary!  Upgrade as needed, and enjoy the freedom that cutting the cord can offer!