AppleBucks

If you're not paying attention to Apple, you're missing a lot.

Last week, Apple's big news was their introduction of a new iPod lineup, and they dropped the price of their popular iPhone.

But that wasn't the most interesting part of the story.

Apple also announced a partnership with Starbucks that will soon introduce a chain of highly-customized digital entertainment stores.At Starbucks locations, Apple will offer a Wi-Fi version of their iTunes music store that will feature custom music selections based on each store's recently played songs and other featured content. This gives Starbucks the opportunity to turn its coffee shops into digital music and video stores.

This is just the tip of the iceberg... I think we'll soon see similar deals that will give digital media a much greater presence in physical locations. I also think it is another indication that consumers expect to be able to access and control their media anywhere, without the need for their PC as a middleman.

For multifamily property owners, it certainly is further evidence of three major lifestyle trends:

1) Consumers expect broadband Internet, and they expect to be able to access it from almost anywhere.

2) By providing more opportunities to buy music, people will simply buy more music. There is an almost insatiable appetite for digital content, especially when presented in a fun, easy-to-use format.

3) The connection between mobile devices and physical locations is becoming increasingly important.

As the Wired article states, "If Starbucks installed compact, terabyte-size media servers with [a fast local network connection], a 1-GB movie could be delivered to an iPod in seven minutes," instead of the 90 minutes required using a typical Internet connection. Apply this idea in an apartment community, and this is something that could easily be done from the Main Communications Room (MPOE) at a typical property. And don't you think more folks are downloading movies at home than at Starbucks?

When working with your service provider or other third-party technology companies, property owners should be creative and aware of what is available to consumers through other outlets. Understand these trends, and look for unique ways to play with popular devices like the iPhone... or else you might soon find all your residents down at the local Starbucks.

Think Mobile... Your Residents Do

Hewlett-Packard has quietly introduced a free service called Cloudprint, which should make it possible for anyone to share, store and print their documents on any printer almost anywhere in the world, using only their mobile phone. (New York Times)

Here's how it works:
The user stores their documents to H-P Web servers, which can then be retrieved as PDFs and printed later at any Windows-connected printer, using a simple text messaging system (a Mac version is in the works). The service will include a directory service that will show the location of publicly available printers on Google Maps.

The idea is to unhook data from a user’s computer, making it simple for travelers to take their documents with them and use them with no more than a cellphone and access to a local printer. If you've ever spent time on the road hunting for the closest Kinko's, you can probably see the value in a service like this.

The Cloudprint service is the first of a wave of applications that will surely be developed as a direct response to the hugely-popular iPhone. Expect more services like this from H-P and a host of others that will increasingly "unhook" data and specific functions like printing from a user's computer. An H-P exec was quoted, saying this service will help the company "ride the wave of the Web.”

Sounds great, but what does it have to do with apartments?

Well... there's a broader strategy here that multifamily owners should note:
Create a valuable service that will reinforce the company's brand and foster the sale of other products. In this case, it's H-P ink and supplies.

For apartment owners, it's unclear what that valuable service might be... but I'm sure that there are a few good ones out there, and it's time we start thinking about them.

It could be free or discounted data storage or website hosting. How about exclusive deals from local retailers straight to residents' cell phones? Free printing (and maybe shipping) to any community within your portfolio? There are lots of ways for owners to deliver value, reinforce their brand and drive retention & referrals.

Apartment residents are mobile and connected, and they value convenience. Basically, they're the perfect candidates for these types of services.

So the question becomes: What can you do to offer more mobility, more utility, and more value to your residents?

What Comes Down Must Go Up

Offering broadband Internet service to residents has becoming increasingly important in the past decade - NMHC reports that 84% of renters with Internet service have high-speed access. This high-speed connection has always placed a much greater emphasis on download speeds; many people never ask about or even refer to the upload speed. ("It's not bad, I get 5 Megs...") But a host of devices announced last week by companies like Apple, Sony, Sling Media and others intend to change this unbalanced equation, and they're coming soon to a retailer near you. These devices allow users to send digital content from their PC to their TVs, as well as other users or locations. Forbes, InfoWorld

Here's a rough demo of how the Sling system will work in their partnership with CBS:



Sending video and music files over the network like this will require much greater upload speeds that those typically offered by ISPs today. Additionally, the amount of "user-generated" content being produced for YouTube, Revver and other sites has increased exponentially over the past few years. Property managers need to be aware of these trends, and should be looking at opportunities to work with their service providers to increase upload speeds to give residents a better overall user experience, whether they are downloading a file to their email or sending a video clip to a friend.

Once the connection is there, this two-way technology could open the doors to a number of interesting possible applications in a "networked" multifamily community. For instance, if I can send movies to my TV in my unit, why couldn't I send them to the screen in the clubhouse theater room. Maybe I could do the same with movies that I saved on my DVR back upstairs. Providers need to be thinking about ways to protect against piracy, but also enable property networks to offer the much better services and rich experiences that today's networks could easily deliver. But we want to hear from you... what other kinds of services should content providers be offering in the ultimate connected community?

New Media Keeps Consumers Connected

Looking at BIGresearch's Simultaneous Media Studies, today's consumer feels a need to stay connected and that need is driving the adoption and usage of new media.

Consumers' usage of TiVo/Replay TV, Satellite Radio and iPod/MP3 Players lead the way with regular usage for TiVo/Replay TV up 88.1%, 79.9% for Satellite Radio and 72.1% for iPod/MP3. Meanwhile, traditional media usage has declined as consumers seek to integrate new media options into their busy lifestyles. Joe Pilotta of BIGresearch concludes "What should be apparent... is that the mobile, intermittent and attentive lifestyle is a fact and connectivity is key to this lifestyle." BIGresearch (Click on Complimentary Top Line Findings.)

So why do you care as a property owner? Because most apartment buildings hinder, much less help to enable, the connected lifestyle. TiVo has all kinds of great features, and most people that own one don't know how they ever watched TV without it, yet many buildings aren't optimized to let residents make full use of the technology. It's just been in the past few years that buildings have been wired for data services, and most owners still subject themselves to the limitations of partnering with a single service provider. NMHC surveys show that poor service affects retention, so it's important to know both what your residents want and how your communities need to be wired to provide quality services.