Bloomberg Businessweek - August 24-30, 2015

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Technology “Allowing the UHF spectrum to be program). Given that even premium inefficiently used cable channels are often part of larger makes little sense packages bundled with broadband today and will and phone services, it can be more make even less trouble than it’s worth to drop HBO sense in the future” once the latest season of Game of Thrones ends. With its kids’ content and $15-a-month standalone service, HBO is betting it will keep attracting Form and function Innovator Edward Knightly viewers, whether they’re cable cusWatch, an app that can be installed on a smart TV Age 46 tomers or cord cutters. or remote control to increase Wi-Fi bandwidth by Co-founder of three-yearHulu, which relies more on ads than up to six times, recycles idle or unused spectrum old startup Vuum and typically given to ultra-high-frequency (UHF) TV the other streaming services, has been professor at Rice University channels. in Houston less enthusiastic about kids’ shows. Children’s programming and ads can make for an awkward match online. Background Global 1. Origin Knightly and TV channel wireless-data traffic When YouTube launched a kids’ grad student Xu in use grew 69 percent last service earlier this year, it came under Zhang began work year, Cisco Systems attack from advocates who opposed on the UHF Wi-Fi app estimates, reaching 21 22 23 24 25 26 27 28 29 30 Unused at Rice in 2013. about 2.5 exabytes showing ads to kids. Hulu includes Spectrum (2.5 billion gigabytes) shows from Nickelodeon and Cartoon a month. 24 Network and offers a kids’ channel through its paid service, but only Routing Once connected 3.7 percent of its shows are for chilto a TV, the app tracks dren, SNL Kagan found in its October use of each slice of the survey. Hulu declined to comment. UHF spectrum and directs smartphones and tablets to “Blending of children’s programthose the TV isn’t using. ming content with advertising material on television has long been prohibited because it is unfair and deceptive to children,” a consortium of consumer advocacy groups wrote in an April complaint to the Federal Trade Commission. “The fact that children are viewing the videos on a tablet or smartphone screen instead of on a television screen does not make it any less unfair and deceptive.” Seth Shafer, an analyst with SNL Kagan, says Hulu and its advertisers may be concerned about Funding Grants totaling $500,000 further blowback. 2. from Intel, Cisco, and Skepticism about running the National Science ads on kids’ programming Foundation, among others, have covered online has contributed to the project’s costs. the rise of niche subscription services like the Sesame Price Within a year, Go website, which offers a library of 28 Vuum says it plans to start selling modems videos and games featuring Sesame using parts of Street characters for $4 a month. Shafer Rerouting When viewers put Watch’s technology on a channel that requires an says that if these services can get a kid for about $500. occupied frequency, the app hooked on a show, mom or dad will can shift other devices to a likely do what it takes to keep the epidifferent frequency in less than two seconds, so users sodes streaming. “If my two-and-a-halfwon’t notice interruptions. year-old [were] deprived of Curious George,” he says, “my life would be Next Steps such living hell.” —Joshua Brustein Chief Executive Officer Ryan Guerra says Vuum is in talks with several Internet providers to test its technology over larger areas. The Federal The bottom line To become more Communications Commission authorized a small public test of the Watch indispensable, HBO, Netflix, and Amazon are app in Houston last year, but would have to approve broader implementation. expanding their collections of kids’ shows. Still, for now, “it looks quite promising,” says independent wireless analyst Chetan Sharma. —Olga Kharif Edited by Jeff Muskus

Innovation UHF Wi-Fi

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What I Wear to Work: Dr. Jacquie, America’s Marriage Coach, gauges her mood before selecting the day’s look

1min
page 77

The Critic: Mountain-climbing documentary Meru digs deep into what drives us upward

3min
page 76

Small to Big: Business for trampoline park chain Sky Zone is jumping

1hr
pages 48-71

Survey: How do you motivate employees through the end-of-summer slump? We asked clever bosses

2min
page 73

Food: Invasive species make an unusually satisfying meal

3min
pages 74-75

Millennials aren’t into insurance agents. Enter PolicyGenius

4min
page 45

The Mother Company’s videos help kids deal with frustration

5min
pages 46-47

Bid/Ask: IndiGo, India’s largest airline, makes a $27 billion deal for 250 Airbus jets

6min
pages 41-43

BloomNation takes on the flower powers

5min
page 44

Legg Mason’s Bill Miller is on a hot streak, but redemption remains out of reach

4min
page 40

Alibaba plots a comeback after $105 billion in market cap vanishes

4min
page 39

Innovation: A way to supercharge Wi-Fi capacity

5min
pages 37-38

Investors value phone maker HTC at next to nothing

3min
page 35

Flextronics embraces the Internet of Things

4min
page 34

Game of Thrones’ new stablemate at HBO: Sesame Street

4min
page 36

The EPA has a pig poop problem

6min
pages 29-30

Scott Walker rides high on a hog

9min
pages 31-33

Super PACs find a friend in LLCs

5min
page 28

Skechers won’t get burned next time a fad becomes a fiasco

4min
page 24

A child-care shortage puts the squeeze on millennial moms and dads

4min
page 15

The Great American Egg Crisis

19min
pages 18-21

Briefs: Pay raises at Wal-Mart shrink its bottom line; Petco prepares to go public

6min
pages 25-27

Citroën’s new China head arrives just in time for an industry meltdown

4min
page 22

The DIY creativity of Cuban entrepreneurs

4min
page 16

With the Kremlin tightening its purse strings, even Putin gets a pay cut

3min
page 17

How Fujifilm thrives in the era that brought Eastman Kodak to its knees

4min
page 23
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