Michael Powell: Cable Companies At the Mercy of Content Companies

  • Michael Powell, president of the National Cable and Telecommunications Association and former FCC chairman, suggests that content creators are still in control in the emerging multiplatform age.
  • “Technologists are excited about software or hardware and we forget that people are really buying and holding on to stories,” notes Powell.
  • “The challenge in the living room — when you talk about new devices and platforms what often gets left out is access to the highly-produced, licensed content that viewers most crave. You’re asking to substitute a fresh experience.”
  • “The holy grail for the living room to me isn’t technology,” he says. “It’s figuring out how to integrate the phenomenal power and interactivity and information of the Internet into the highly produced premium content that we crave.”
  • When asked whether manufacturers should be able to tap into cable streams and offer alternative experiences, Powell suggests that “cable companies are at the mercy of content companies on the issue of content rights and use.” Mirroring the cable experience on other devices is not a technological issue, but an issue of licensing rights.
  • “At the end of the day Apple and Boxee and Vudu and Roku are going to find out that the content market is tough and expensive, and it’s hard to do the most creative things,” he says.
  • Powell suggests that all companies are heading toward IP-distributed content and a shift from a hardware-centric environment to a software-centric environment. “When the guide and content are in the cloud, you can change look and feel overnight,” he adds. “You won’t have to come in and get a whole new box — that’s a horrible model.”

Social TV Gets Down to Business, But Still in Early Days of Development

  • With a new Nielsen report indicating that smartphones have saturated 50 percent of the American market and tablets have made their way into 20 percent of American television viewing homes, executives have begun to take second screen viewing more seriously as a legitimate trend, reports Ad Age.
  • Forty percent of Americans use smartphones while watching television at least once a day, according to Nielsen, and 84 percent use a smartphone or tablet while viewing television at least once a month.
  • These trends have executives, like Lou Paskalis of American Express, convinced that this “is a bigger cultural shift.” Paskalis has helped his company toward a vision where consumers use “mobile devices not only to chat and communicate, but also to look for product details and make purchases,” writes Ad Age.
  • While people do not like advertisements on their primary screen, second screen advertisements with relevant content could help drive commerce. This approach supplements the content on the main screen without interrupting the viewing experience.
  • “No one wants to see a pop-up in the middle of their program they love saying ‘Buy this!'” says Paskalis. “The primary screen is not the way to drive the commerce.” Second screen marketing represents “a way to augment the experience without impacting the experience.”
  • American Express is testing the waters through second screen partnerships with Fox and NBCUniversal. Verizon has been testing in-app voting for “The X Factor,” while Target has been steering viewers of ABC’s “Revenge” to additional content on second screens.
  • “How brands will create content that isn’t annoying and isn’t disruptive and really is something worth watching and not skipping — we are in the early days of figuring out that value for the consumer,” says Jeff Jones, Target’s chief marketing officer.

Checking In: Social TV Companies Viggle and GetGlue Announce Merger

  • Rewards-based social TV service Viggle announced it will acquire GetGlue for $25 million in cash and 48.3 million shares of stock. Under the terms of the deal, Viggle will operate both brands.
  • GetGlue is “a social network based on check-ins for entertainment,” reports CNET. Its founder and CEO Alex Iskold will join Viggle as a senior exec and member of its board of directors. All 35 GetGlue employees will be part of the new company.
  • Launched in January 2012, Viggle rewards users for checking into TV shows by offering them points that can be used for gift cards and products from the likes of Amazon, Best Buy, Fandango, Hulu Plus and iTunes.
  • “GetGlue, an app that operates like Foursquare for entertainment, gives users virtual stickers for checking in while watching shows or movies,” explains CNET. “Those virtual stickers are then turned into real-life ones and mailed to users for their collection.”
  • The company was launched in 2007 and currently claims over 3.2 million registered users and more than 500 million entertainment ratings and check-ins.
  • “Viggle is raising the funds to buy GetGlue with investments from other companies that would like to see the two unite,” explains the article. Greg Consiglio, Viggle president and COO, says the investors “could be a media company, or could be somebody in the media strategic space, someone with hardware you might use to check in with.”
  • Current GetGlue media partners include ABC, Comedy Central, Fox, HBO, NBC, Showtime, USA Network and Warner Bros. Television. Viggle has a number of ad partners and relationships with Verizon and DirecTV.

Hulu Goes Live with New Video Hub Dedicated to All Things Gaming

  • Hulu has launched a new gaming portal that enables users to find previews of new titles through trailers, customer reviews and release information.
  • The Hulu Video Game hub — the second new channel Hulu has launched this month — is currently Web-only, but a mobile version for Hulu Plus-connected devices is in development.
  • “The Fox/CBS/Disney-ABC co-owned Internet video-streaming service is looking to lure in more viewers with a dedicated home for game trailers, reviews, and essential information (like release dates),” reports VentureBeat. “It also looks pretty with large high-definition image headers for featured titles.”
  • The portal hosts a review show called “Electric Playground” and episodes of gaming culture. There is also a section dedicated to programs and movies that relate to games.
  • “YouTube’s gaming channel sees millions of views each day. The latest ‘Grand Theft Auto V’ trailer, released only two days ago, already has 7 million views on Google’s video site,” notes VentureBeat.
  • “If Hulu can get in on that action, it’ll start producing respectable ad revenue at a relatively small cost, since publishers are the ones paying to produce the content.”

Gartner Report: Smartphone Sales Up 47 Percent, Android Expands Lead

  • According to a new report from Gartner, global sales of smartphones rose 47 percent in the third quarter compared to last year.
  • Samsung and Apple accounted for nearly half the market while Nokia took a slide from third place in market share down to seventh.
  • Android increased its share among operating systems from 52.5 percent to 72.4 percent. Nokia’s Symbian and RIM’s BlackBerry platforms fell sharply, while Samsung’s Bada rose to fourth place.
  • Total cellphone unit sales declined as smartphones continue to gain in popularity.
  • “More than 427 million phones were sold in total during the third quarter, 3 percent down on the same quarter a year ago, Gartner said, but up slightly on the 419 million devices shipped in the second quarter,” reports CNET.
  • “Meanwhile, smartphone sales are continuing their upward trajectory compared to feature phones — 169 million smartphones were sold during the quarter, an increase of 47 percent year-on-year.”

GameStop to Close 200 Stores as Players Gravitate to Online and Mobile

  • GameStop plans to close 200 of its stores around the globe next year. The world’s largest video game retailer says 3 percent of its outlets — primarily in Canada and Australia — are operating unprofitably.
  • The Texas-based company operates 6,650 stores worldwide. It recently reported that third quarter sales were down 8.9 percent from a year ago, to $1.77 billion. However, these figures are better than originally estimated and GameStop’s shares rose 4.25 percent to $24.48.
  • CEO J. Paul Raines notes the company is showing “strong resilience in the face of challenging category headwinds, and the new categories of digital and mobile are creating new profit pools that we are exploiting aggressively.”
  • “The retailer heads into the U.S. holidays weighed down by a two-year industry slump as players gravitate to mobile and online play from console-based games,” reports Bloomberg. “Raines said the company managed to expand margins in a ‘tough video game market’ by expanding into the re-sale of Apple iPads and other mobile devices and growing its digital download business.”
  • Investors are watching this month’s launch of Nintendo’s Wii U, the first major console release in six years, to see if it will have an impact on purchases of packaged games.
  • “GameStop hopes the start of a new console cycle with the Wii U launch and just-released high quality games like Microsoft Corp’s ‘Halo 4’ and Activision Blizzard’s ‘Call of Duty: Black Ops II’ will boost hardware and software sales this holiday season,” notes Reuters in a related article.

Google TV Update Offers Enhanced Voice Control and New Features

  • Google announced a new upgrade to Google TV on Wednesday, which now offers advanced voice control, a new programming guide app and features from Google’s Knowledge Graph.
  • “The most important new feature of the update, which has internally been called Google TV 3.0, is voice control: Users can trigger channel changes, start apps and fire up the program guide with simple voice commands,” reports GigaOM.
  • The system is sensitive to context, bringing up Web content, shows or videos as commanded by users. The article also notes that the Google TV voice control is different from that of Microsoft’s Xbox and Samsung’s TV platform.
  • “The company decided to add the microphone to the remote control to allow users to use both,” explains the article, noting that the “old D-Pad still works great for simple navigation tasks, which can be overly complicated if you want to solve them through voice or gestures.”
  • The smarts behind Google’s Knowledge Graph also powers the recently launched Google Now app.
  • “Google Now and the thinking behind it has been a big inspiration for Google TV going forward, [Google TV product lead Rishi Chandra] added, explaining that the goal is to eventually display content in very much the same way that Google Now displays its information cards to its users.”
  • Google TV 3.0 includes a new programming guide called PrimeTime that gives access to live TV and streaming content, “but shines especially during live TV viewing, when shows on other channels are displayed through topical overlays,” notes the post. “Eventually, the same functionality will exist for YouTube and other on-demand content.”

MasterCard Unveils Interactive Payment Card with LCD and Keypad

  • MasterCard has developed an advanced payment card with LCD technology and keypad intended to increase security and help protect bank and credit accounts.
  • “The credit card company has partnered with Standard Chartered Bank Singapore in order to release an interactive payment card that looks similar to a pocket calculator,” reports Digital Trends. “Located at the top right corner of the card, a member of Standard Chartered Bank Singapore will find a liquid-crystal display that shows up to six digits. Along the bottom front of the card, the user will find a a ten-digit keypad.”
  • The next-generation, interactive display card features additional functionality with its touch-sensitive “clear,” “okay” and “on/off” buttons.
  • “This card has been designed for transactions that require a higher level of authorization,” explains the post. “When a new cardholder first acquires the card, they will be able to generate a one-time password as an authentication security measure for the future.”
  • “With the continued growth in online and now mobile initiated remote payments, consumers are naturally demanding increased security,” notes Matthew Driver, division president of MasterCard Worldwide in South East Asia. “The innovative features of the Display Card serve to address this need, whilst empowering consumers to do so much more with their payment cards.”
  • MasterCard is looking into additional uses for the LCD related to personal finances, such as displaying current balance, remaining available credit and recent transactions.
  • Visa launched a similar card in Europe late last year. The Visa CodeSure Matrix Display Card features an LCD, keypad and battery that can last up to three years.

David Gilmour to Release First Concert as an App for iPhone and iPad

  • Musician David Gilmour will become the first artist to release a music concert as a smartphone app.
  • DVD authoring group The Pavement has created a new technique to convert DVDs into apps and is hoping to reach a larger audience with the concert app, rather than the traditional DVD-only distribution.
  • Gilmour, formerly of Pink Floyd, released a compilation of songs on DVD recorded during Robert Wyatt’s 2001 and 2002 Meltdown Festival at London’s Royal Festival Hall. The app will be a version of the successful DVD release.
  • “The critically acclaimed performance features Gilmour alone with just his voice and along with a vocal choir that’s accompanied by a group of acoustic instruments,” reports The Unofficial Apple Weblog. “Robert Wyatt, Bob Geldof and Pink Floyd’s Richard Wright also join in on some of the performances.”
  • The concert app will be available for the iPhone, iPad and iPod touch starting next week (an Android version is in the works). According to Gilmour’s website, the app will cost $8.99.
  • “The App works exactly like its source DVD — full of rich video and audio material with interactive motion, menu navigation options and bonus extras,” explains the site. “It is envisaged that this new process could open the door for many other classic musical performances to be made available as apps to be enjoyed on mobile devices, away from the restrictions of the home DVD player.”

Bookboard Offers Streaming Access to Children Books via the iPad

  • Former Adobe executives Fang Chang and Nigel Pegg launched the free public beta version of Bookboard this week — an iPad app that offers streaming access to children’s ebooks.
  • The app already has a library of 300 titles from publishers Charlesbridge, Orca, Twin Sisters, Illumination Arts and Bubblegum Books.
  • The goal is to provide iPad content for kids and their parents that is more educational than YouTube or “Angry Birds.” The startup plans to eventually charge a monthly fee between $5 and $10.
  • “Bookboard titles are not enhanced with widgets, games, or other interactivity features (other than an ability to tap on text to enlarge it),” reports paidContent. “The company says that is intentional, to leave the focus on the reading experience.”
  • However, the company is expected to provide “more premium content and add-ons available in the future.”
  • Publishers will receive royalties based on page views. Other startups including Oyster and 24symbols are pushing to become the Netflix of ebooks, but have experienced challenges with the model, given resistance by publishers and conflicts with author contracts.
  • Chang told paidContent that “publishers are being a lot more savvy these days, making sure they obtain the digital rights for these books.” But the article points out that digital rights do not always cover streaming or subscription models.

LG Launches First 21:9 UltraWide Monitor: The 29-Inch EA93

  • LG announced last week the launch of its 21:9 UltraWide monitor, which the company claims is the world’s first monitor in that format.
  • The 29-inch EA93 UltraWide Monitor boasts a 21:9 aspect ratio and features 4-Screen Split with the ability to offer four customizable screen views.
  • “That could make this monitor a possible alternative for people who use a dual-screen setup,” notes Digital Trends. “In fact, it has a Dual Link-up option to connect the monitor to two external devices, which means you could have a similar setup to multiple monitors without any variation in color or image quality. It also features a DVI-D port and two HDMI connectors.”
  • With a maximum resolution of 2,560 x 1,080, the IPS (In Plane Switching) display should prove an excellent option for watching movies. LG is emphasizing the monitor is designed for work and personal use.
  • “LG has been making waves with its efforts to improve screen quality this year,” notes the post. “The company has gone very small with a 5-inch LCD screen with high definition and 440 ppi, and insanely big with a whopping 84-inch Ultra HD television.”
  • The EA93 will initially roll out in South Korea this month before availability in the U.S. The company has yet to announce a price point.

Apple Still Leads Tablet Wars: Review of Fourth Generation Wi-Fi iPad

  • According to PCMag.com, Apple remains on top in the tablet competition with its fourth generation iPad.
  • “Apple’s latest iPad is the best large tablet you can buy, period,” notes the review. “The Apple iPad has it all: top performance, a stellar screen, a surprisingly good camera, speedy Wi-Fi, and a breathtaking library of spectacular apps.”
  • The review examines pricing, features, apps, performance, camera upgrades and comparisons to similar products. It suggests games and apps launch twice as fast as they do on the iPad 3 — and notes the significantly improved gaming performance.
  • The review also notes the device’s stellar Wi-Fi performance: “On PCMag‘s 5GHz 802.11n network, I got 37Mbps down on the iPad and 23Mbps down on the Nexus 10. Both speeds are fast, but it’s the iPad’s processor and software that seem to be making the difference here.”
  • The review claims the iPad is the best 10-inch tablet on the market, but also suggests the iPad mini is not the best 7-inch tablet currently offered.
  • “Unlike other 10-inch tablets on the market, it’s the full package, which makes it a very rare five-star product, and a slam dunk for our Editors’ Choice,” writes PCMag.com. “The fourth-generation Apple iPad is the only product I have ever personally rated five full stars because it represents the tablet state of the art.”

Wikia Launches New Lightbox Multimedia Player and Syndication Deals

  • Shortly after Wikipedia launched its HTML5 video player, its for-profit counterpart has released a streaming multimedia player and announced new syndication deals.
  • Wikipedia founder Jimmy Wales launched Wikia as a “Web-hosting service for crowdsourced wikis, free for readers and editors, but funded by advertising to make money,” explains The Next Web.
  • Now, Wikia has launched a new Lightbox streaming media player for the site’s 50 million monthly global visitors and is offering access to nearly 100,000 videos and 14 million photos, thanks to new syndication deals with AnyClip, IDG, IGN, RealGravity and ScreenPlay.
  • Through the Lightbox, users can stream trailers, previews, clips and exclusive studio videos at up to 1080p HD. Additionally, fans will be able to curate this licensed content and insert it into wiki pages.
  • During its beta period, Wikia offered multimedia collections on wikis for “Mortal Kombat,” “Shrek,” “The Hunger Games” and “The Lord of the Rings.”
  • The Lightbox is now available to all 250,000+ Wikia communities. Video content is also shareable on Facebook, Twitter and via email.
  • “The new video library, and Lightbox player will amplify Wikia’s naturally strong community creation and curation activities by enabling the assembly and packaging of user created and premium photo and video content in one place,” says Wikia CEO Craig Palmer. “These efforts will make it easier to showcase the passionate pursuit of knowledge through collaborative storytelling.”

Study Indicates Web Radio Rising Faster Than On-Demand Services

  • The way consumers interact with music today is not simply evolving from an analog to digital experience, but also involves shifts from downloads to streaming.
  • Web radio services, such as Pandora, have experienced more recent growth than on-demand players such as Spotify and Rhapsody, indicates a new study.
  • In the second quarter of 2012, U.S. audiences for Internet radio services increased by 27 percent over the previous year, according to findings from The NPD Group. Meanwhile, on-demand services including Rhapsody, Spotify, YouTube and others had an 18 percent increase in listeners.
  • NPD also reported that AM/FM radio is still the top choice in the U.S. for listening to music, followed by music streaming services and Web radio, which have displaced CDs.
  • “Since 2009, the percentage of Pandora users who also listen to AM/FM radio declined by 10 percentage points,” notes the report. “Listening to digital music files on portable music players also dropped 21 points.”
  • “NPD said that contributing to part of those declines was Pandora’s successful move into automobiles,” reports CNET. “The research company said that 34 percent of Pandora’s users are now listening to the service in their cars.”

Twitter Sentiment Analysis: Bridging Computer and Natural Language

  • Tone in various forms of electronic communication has often led to confusion between friends, colleagues and family members — especially when the intended tone is sarcasm.
  • “Now, as more people are sharing their opinions with casual acquaintances and strangers on social media sites like Twitter and Facebook — rather than in private text messages to people who know their senses of humor — the sarcasm disconnect is even greater,” notes the Wall Street Journal.
  • Data miners are increasingly met with this challenge. “Sarcasm is proving to be an obstacle for the academics and marketers who create computer programs to analyze massive pools of online chatters to gauge public opinions about products and politicians,” explains the article.
  • USC’s Annenberg Innovation Lab has launched a Twitter Sentiment Analysis project that “unites linguists, sociologists and computer scientists to try to build a modern-day lexicon for computers to read and interpret huge chunks of data provided by the millions of people who share their opinions online,” reports WSJ.
  • The project has turned to politics to analyze data. For example, the lab’s computer has analyzed more than 40 million tweets involving candidates and hot-button issues. Additionally, more than 50,000 tweets have been manually analyzed to determine sentiment.
  • “Many of the ETC member companies are using sentiment analysis from companies like Crimson Hexagon to guide their marketing and social media efforts,” explains ETCentric contributor Phil Lelyveld. “This USC research program will improve the accuracy of the analytics that they use.”