Category Archives: Business

Business, Science

Why We Aren’t Getting Super HD on Netflix

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Netflix Logo Not PixelatedNetflix video resolution can sometimes be really pixelated & low quality compared to Hulu so I wanted to find out exactly why. With your big screen TVs in homes everywhere, you might be watching House of Cards season 2 but it may not be as crisp as you had hoped. You might find yourself thinking: “Why does Netflix look so bad on my TV?”. Even when the show is supposed to be in “SuperHD” (which equals 1080p) you may be staring at standard quality. And if you are trying to watch old episodes of say…..StarTrek Next Generation then you are likely going to see pixelated faces as well. So how do we get Super HD on Netflix and higher quality resolution on retro TV shows of yesteryear?

Kevin Spacey Pixelated Images

The SHORT answer is you CAN’T do much to fix this pixelation problem other then wait for Netflix to boost its delivery quality over time. Millions of people share this network problem but don’t have an avenue to complain to Netflix OR are too used to low quality streaming via the black market of online streaming to really care. Old-school business thinking would say that if customers aren’t complaining there isn’t a problem but Netflix knows its unique selling proposition is tied to delivery & quality. So, apparently you can’t get top quality because Netflix is structured to deliver bandwidth through it’s network based on demand for a given show AND based on the amount of viewers that are using the Netflix network. In other words, because there are about 1000+ watching the same episode of Star Trek, Netflix does not allocate that much definition to ensuring the quality of a low-demand show is high.

Deanna Troi Pixelate Images

Netflix would much rather allocate definition HD to their high demand shows first and then trickle down through their inventory of shows. The problem for top demand shows is that Netflix starts streaming sooner than top quality can be played because the company wants to be fast and deliver images at a reasonably high level as quickly as possible so that impatient users don’t get upset with the user experience. Then coupled with this quick delivery, the bandwidth (demand within the Netflix network) gets crowded by too many users and so full-resolution streaming is not possible. So if you’re staying in on a Saturday night, you’ve picked the wrong time to watch Netflix because so is everyone else and that means lower quality HD.

Netflix Network TreeIn sum, the most important factor to EXPLAIN WHY YOU CAN’T GET WHAT YOU WANT IS:

1) the time of day that you are using Netflix and whether that time of day is peak or prime for a high volume of viewers. When you are watching a show at peak hours you are sharing with a giant network that is ‘rationing’ bandwidth. In other words, Netflix is a net neutral system where everyone has equal access. Netflix is charging the same rate across the board and delivering a rationed system to the masses, so much for capitalism. On top of this network, Netflix is playing a game where they are trying to get the highest quality services across the network. Netflix is responsible for around 33% of all internet traffic in the US and Canada for hard-wired Internet connections, so their system is robust to say the least.

2)  your device or television is only a minor factor in quality (assuming your have a decent TV or computer built in the last 3 years). Folks online have written about A/B testing the quality of their 2 modern TVs side by side to determine MegaBitsPerSecond averages which range from 40 to 60. So the devices themselves aren’t really the significant factor in the quality of images on your TV screen.

Netflix Crappy Options

The Long-Term Reality>>>> Netflix didn’t have the ability to stream into homes until the mid-2000s so we can expect the resolution to gradually improve as the technology to deliver and received that data accelerates. Open Connect is their current solution to this data bandwidth conundrum. Open Connect would allow Internet Service Providers (ISP) to directly divert traffic through other infrastructure provided by competing ISPs in order to get data from A to B to C. This system allows users to view decent quality rather quickly. However, this Open Connect system is not being applied very much by the existing ISP providers who really don’t want to help each-other out that much except with price setting OR sharing cellphone towers for coverage. So given that networks are sharing some information, you can expect more ISPs to join Open Connect should customer demand push for it. As Netflix delivers UltraHD in 2014, expectations will continue to grow amongst consumers and Netflix will try to avoid lagging behind for fear that Apple or other competitors will swoop in and take some of their impressive market-share.

Business, Science

How the Stock Market Works | The Cartoon

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The stock of a corporation is partitioned into shares, the total of which are stated at the time of business formation. Additional shares may subsequently be authorized by the existing shareholders and issued by the company. In some jurisdictions, each share of stock has a certain declared par value, which is a nominal accounting value used to represent the equity on the balance sheet of the corporation. In other jurisdictions, however, shares of stock may be issued without associated par value.

Shares represent a fraction of ownership in a business. A business may declare different types (classes) of shares, each having distinctive ownership rules, privileges, or share values. Ownership of shares may be documented by issuance of a stock certificate. A stock certificate is a legal document that specifies the amount of shares owned by the shareholder, and other specifics of the shares, such as the par value, if any, or the class of the shares.

In the United Kingdom, Republic of Ireland, South Africa, and Australia, stock can also refer to completely different financial instruments such as government bonds or, less commonly, to all kinds of marketable securities.

http://en.wikipedia.org/wiki/Stock

In finance, investment is the purchase of an asset or item with the hope that it will generate income or appreciate in the future and be sold at the higher price. It generally does not include deposits with a bank or similar institution. The term investment is usually used when referring to a long-term outlook. This is the opposite of trading or speculation, which are short-term practices involving a much higher degree of risk. Financial assets take many forms and can range from the ultra safe low return government bonds to much higher risk higher reward international stocks. A good investment strategy will diversify the portfolio according to the specified needs. The most famous and successful investor of all time is Warren Buffett. In March 2013 Forbes magazine had Warren Buffett ranked as number 2 in their Forbes 400 list. Buffett has advised in numerous articles and interviews that a good investment strategy is long term and choosing the right assets to invest in requires due diligence. Edward O. Thorp was a very successful hedge fund manager in the 1970s and 1980s that spoke of a similar approach. Another thing they both have in common is a similar approach to managing investment money. No matter how successful the fundamental pick is, without a proper money management strategy, full potential of the asset can’t be reached. Both investors have been shown to use principles from the Kelly criterion for money management. Numerous interactive calculators which use the kelly criterion can be found online.

http://en.wikipedia.org/wiki/Investment

A stockbroker is a regulated professional individual, usually associated with a brokerage firm or broker-dealer, who buys and sells stocks and other securities for both retail and institutional clients, through a stock exchange or over the counter, in return for a fee or commission. Stockbrokers are known by numerous professional designations, depending on the license they hold, the type of securities they sell, or the services they provide. In the United States, a stockbroker must pass both the Series 7 and Series 63 and or Series 66 exams in order to be licensed. In most English speaking venues, the two word term stock broker, like stock brokerage, normally applies to the brokerage firm, rather than to the individual.

While the term “stockbroker” is still in use, more common terms are “broker”, “financial advisor”, “registered rep.” or simply “rep.” — the latter being abbreviations of the official Financial Industry Regulatory Authority (FINRA) designation “Registered Representative,” obtained by passing the FINRA General Securities Representative Exam (also known as the “Series 7 exam”) and being employed (“associated with”) a registered broker-dealer, also called a brokerage firm or (in the case of some larger money center broker/dealers) a “wirehouse”, typically a FINRA member firm.[7] Other FINRA licenses or series exams exist. Although individuals holding some of those licenses, such as the “Series 6”, cannot be called stockbrokers since they are prohibited from selling stock and are not trained or licensed in the full array of capabilities of a Series 7 stockbroker (see list of securities examinations). Selling variable products such as a variable annuity contract or variable universal life insurance policy typically require the broker to also have one or another state insurance department licenses.

Business

What’s Wrong with Kentucky Fried Chicken in the USA?

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Transcript of AustinMcConnell’s video: SUBSCRIBE to his channel if you like. This is an algorithm test page.

“All right, so check it. I miss eating at KFC. When I was a kid, Kentucky Fried Chicken was the bomb. My seven-year-old heart would jump with joy whenever my grandparents decided to pull into the KFC in my hometown for lunch. We’d get a big bucket of the 11 herbs and spices, green beans, coleslaw, enough Pepsi-Cola for everybody, the whole nine yards, and it was awesome. You couldn’t beat it.

Who needs Christmas when you’ve got KFC? The chicken was crispy, the restaurant was clean, and the eating was good. But 20 years later, I go to KFC practically never, maybe the drive-thru if there’s absolutely nowhere else to eat, but never ever, ever inside. Why? Because KFC ain’t what it used to be and we all know it.

The past decade hasn’t been kind to the Colonel. Consumers have rated the restaurant as consistently terrible. They’ve been overtaken by Chick-fil-A as the largest chicken chain in the U.S. by sales. They have a truly awful marketing campaign that’s generated more anger than interest. They ranked at the very bottom of customer surveys in 2013, and they’ve been steadily closing stores since 2005.

So what’s going on? You might not know it but there are five keys to the success of your average fast food joint. Fail in any of these areas and folks aren’t gonna wanna buy your product. The less folks buy, the less money you make. Less money you make the closer your franchise comes to extinction. So let’s see how your average KFC stacks up.

First thing you’re gonna need is fast and efficient service. QSR puts Kentucky Fried Chicken in the middle of the pack, not poor, not great, with an average service time at 3.39 minutes and an 88.6% accuracy on orders. Now a question for the Colonel’s corporate bigwigs. If you owned a skydiving business and the parachutes only opened 88.6% of the time, would that be acceptable?

[inaudible 00:01:43], would you skydive there? No. So why use a price when your customer base shrinks, if out of every 100 people to go there, 11 or 12 be charged incorrectly? Sorry, I’m doing that accent thing. KFC, get it together brah. Have a training day. Get your people on the right page. Bump that figure up to the low 90s and you’ll see more customers. An A-minus always looks better on a report card than a B-plus. You feel me?

Next, let’s talk about food quality. Look, I know it’s a little bit picky to ask for a bucket of fried chicken to not be totally greasy. But why ask me if I want original or crispy if it’s all gonna be covered in oil anyway? Just ask me what you’re really asking. Mostly greasy or totally greasy? I can’t even hold onto the stuff when I eat it. And even if I get a solid grip, the thing will fall apart before I get it in my mouth. This grub is whack.

I remember when KFC meant Finger Lickin’ Good. Now I’ve got to wash my hands in a sink because licking this grease off could seriously affect my health. I shouldn’t have to put on a hazmat suit and get the green light from the CDC before tackling an eight-piece bucket meal.

Next category, cash money honey. Look, if it’s gonna be messy and give me congestive heart failure at least don’t charge me an arm and a leg for it too. You’re out of your mind if you think I’m gonna pay $22 plus tax for eight pieces of slimy chicken. Sixteen piece family meal for about $41 in total, get out of here. $41 will buy you a nice meal at a fancy restaurant with mood lighting and a personal waiter.

Why would anybody wanna pay that much money to come here? If you want more customers, lower your prices. I see what you’re trying to do with the $5 fill up and the $10 chicken share. Wrong. If people think your food is too expensive, the solution isn’t to create a budget meal for him. The solution is to lower your prices.

Right across the street from this KFC is a Popeyes where you can get the exact same meal for cheaper. That’s a stupid business strategy for you guys. Hey, which of these prices you think looks better on a windows sign? If you wanna charge people that much to eat at your restaurant at least let the dining experience be worth it.

And that leads us to our next point, the cleanliness of your crib. So you wanna know the real reason I don’t go to KFC anymore? Here it is. This is me walking into a KFC while out on the road, totally unplanned, didn’t set anything up, just walked into a random location without preparation. And oh look, it’s completely disgusting.

Know how I knew it would be? Because you all have a serious sanitation problem. Six percent of your restaurants are dirty or damaged, 6%. That’s the highest of any of your competitors. That’s triple the national average. You guys are getting beat by Taco Cabana. Most people nowadays know to stay away from the inside of KFC. Walking into this particular location, I noticed the tables are dirty. The bathroom lock is broken. There’s grease and grime everywhere. There’s a disgusting mat laying out in the very front that’s damp with all kinds of spilled drinks and chicken grease for everybody to walk on.

And none of the staff seems to think that any of this needs to be cleaned up. Your crib is gross. Look, take a weekend, close your stores, retrain your staff and invest some of your money in private sanitation inspectors. You could fix everything else on this list and if you don’t shed that stigma folks have about your business’s cleanliness, you’ll never get out of the hole you’re in.

Last but not least, marketing. Look, I don’t know what you guys were thinking this year with your comedian rotation Colonel Sanders stick but it’s about to grate on the nation’s last nerve. We’ve got real problems in this country to deal with like ISIS and healthcare, and all we want is to watch TV without seeing one of your poorly conceived and self-depreciating commercials.

Here’s how to fix it in three quick steps. One, take yourself seriously. The wink and nod routine keeps falling flat, so cut it. Entrepreneur says it best. The new Colonel is a caricature. Instead of resurrecting the Colonel to lead KFC’s sales back to their former fried glory, the company has instead unleashed a childish pantomime that people old enough to remember Colonel Sanders don’t like and people too young to know him can’t possibly understand.

Your own company’s research says that one in five people hate your ad campaign. Yet here’s you CEO saying “I’m actually quite happy that 20% hate it, because now at least they have an opinion. They’re actually talking about KFC. And you can market to love and hate. You cannot market to indifference.” Hey, Greg, respectfully? Fire yourself.

The indifference folks were feeling came from years of you giving everybody the impression you don’t really care about the quality of your product. If you don’t care, why should we, as consumers, care? Your problem isn’t that you’re losing relevance. It’s that you’re acting indifferent to legitimate problems. Until you wanna take your business seriously and advertise a KFC that people will be happy to eat at, you’re not gonna rebound.

Step two, embrace nostalgia. If you want a new Colonel cut the live action one, go animated. No, not this train-wreck, go retro. Get the guys from “Fallout” to handle the aesthetic and you’ll have a marketing strategy that looks completely different from anything else out there and you’ll find your footing. Think about it. How many fast food restaurants do you know were doing hand-drawn animated commercials these days? Yeah, exactly. There’s your opportunity. Step three, whatever this is…

Recorded Commercial 1: Six pieces of chicken or 12 hot wings or popcorn nuggets. Now get out there.

Man 1: Stop it. It’s not funny. None of this is funny. You’re not gonna annoy someone into buying your product, right? So why do you wanna annoy your customer base? Oh, look, it’s not like the good folks at KFC don’t know any of this. They somehow pulled it off in foreign markets. KFC’s exploded in popularity overseas, especially Japan. [foreign language 00:07:14]

If they can somehow get folks who can’t read, speak or understand the King’s English to like their stuff, there’s no reason they can’t do the same in the good old U.S. of A. It’s a shame to their board of directors that a business with the name Kentucky Fried Chicken is valued more by people in Tokyo than in the state it’s named after. KFC, I love you, but you’ve got to get it together.

I want future generations to know what it’s like to eat the Colonel’s chicken the way I used to, the way we all used to. Your ship is sinking but you still have time to fix it. If you find yourself endowed, just remember to ask, “What would the Colonel do?”

Recorded Commercial 2: It’s nice to feel so good about a meal.

Man 1: And that’s the video. Thanks for watching. If you liked it and wanna see more, feel free to subscribe to my channel. Or don’t, I don’t really care.”

Business

Walt Disney: The Committee Of Minds Is Inferior To The Visionary With The Right Vision

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MickeyMouse ThemedDisney was a creative thinker, engineer, project manager and master storyteller. The real way to get entertainment was to have personalities tell a coherent story. A good Disney film always has personalities dealing with various problems. Disney would always lighten-up when describing his characters. Story boarding the entire films was important to Disney; the narrative was built from scratch.

Disney CharactersDisney famously told the entire plot of Snow White to his animator team over a 3-hour session complete with all the voices done by himself. Walt Disney created the blueprint for his films in his head; he even told his nephew the entire story of Pinocchio one evening start to finish. Disney was full of energy and was always thinking of how to build a bigger future for his enterprise. He would fire people on the spot whenever he wanted because he was truly powerful. After Walt Disney died of lung cancer in 1966, the Disney company was at a crossroads regarding how it should move forward.

Black Cauldron FailureLike some many visionaries; up until the renaissance at Disney starting with the Little Mermaid, the Disney company had produced fragmented films. The films subsequent to Walt’s leadership were less successful, Michael Eisner believed this was because the creative process was disjointed because decisions were made in a committee (where ever contribution had to be negotiated in or out of the narrative) rather than by an authoritarian visionary who could veto any idea or person. You need to have an executive creative director who has good judgement. Someone had to be the producer and that relationship was that the producer’s vision is the over-riding vision: it always has to subjugate the others to the final decision maker.

Business

Tesla should go Private through Norwegian Oil Reserve Fund

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Predictions are useful as they can be used to demonstrate that you have a better filter on reality than those who incorrectly predict outcomes. I don’t fully agree because being able to accurately predict how human beings will act, intermixed with the complex variables that shape outcomes, is not possible at a reliable rate.

This last month, I correctly predicted Trump winning the presidency. Doesn’t mean that’s what I wanted to happen of course; so where else can I make predictions that come true?

Tesla: Within the next 3 years, I believe that Tesla will try to go private with money from a Saudi fund or Norwegian 1 trillion fund oil reserve fund. I am not a total fan or detractor of Elon Musk’s Tesla. The companies share price will continue to be influenced on heuristics, earnings management and the state of the founder, who channels Steve Jobs. I do see his behaviour following the classic startup zeitgeist. I also believe that one option that Tesla should explore is doing what Michael Dell has done with his company.

Get out of the public markets! Why? The speculators are all short-term centred, the stock market is appropriately short-termist. If you want a solid explanation of short-selling read Business Adventures by John Brooks! But to explain it quickly, imagine you have an orange prices at $1, and I believe that the orange market is going to be saturated, driving the price down to $.50 in a weeks time! I ask you if I can borrow your orange (since you’re not going to use it) I then sell the orange at $1, I then have this orange profit, and boom, the orange market drops so I buy an orange for $.50 and give it back to you. I have made $.50 off of this interchangable orange. So there is a whole class of Tesla stock holders who let short-sellers borrow their stock and then sell it immediately hoping and even forcing the price down so that they can swap it back to the original owner. The incentives to short a highly startup-like stock are pretty obvious. Any negative news impacts Tesla’s stock price and Tesla, as a car company, does not produce enough cars. Compared to GM and Ford, Tesla is 1/10th the size.

I’m hoping my MBA will help validate the claim that financial statements helps investors decide on whether to buy or sell their stock. However, Tesla has many investors who operate on heuristics.

Meanwhile, the Norwegian oil reserve fund: which is nearing $1 trillion dollars USD. Or the Saudi funds that helped companies like the Four Season Hotels go private.

In terms of earnings management, Tesla is starting to show how much this critical skill set matters. In Finance classes at major universities, the narrative of earnings management both the “good” kind and the “abusive kind.” I have yet to actually take a finance course, but I have seen a strong cross over between politicians and CEOs in terms of positioning the best case for their re-election or their stock price respectively. I think that Tesla’s long-term vision is baked into the price of the stock and that price will fluctuate to the point where it makes more sense to go private. Only time will tell!