Pandora unveiled Pandora Plus, replacing the 16-year old company’s original ad-free service. What’s different is that the company now licenses music from the major record labels, rather than using compulsory licenses from the government, with rates determined by federal judges. With the new version, users can replay or skip songs and listen offline. The monthly price remains $4.99. Out of Pandora’s nearly 80 million users, only 4 million are paying subscribers. An on-demand tier for $10/month will also debut by end of 2016. Continue reading Pandora Plus Makes Debut, Record Labels Experience Uptick

Speaking at Goldman Sachs’ Communacopia conference yesterday, Netflix CFO David Wells explained that the streaming service’s goal over the next few years is to offer more original programming. The company is aiming for half of its content to be represented by original productions and the other half licensed movies and TV shows. According to Wells, original programming will continue to be content produced by Netflix in addition to a range of co-productions and acquisitions. Netflix is “one-third to halfway” toward reaching its goal, he said. Continue reading Netflix CFO Explains Plans to Ramp Up Original Programming

In its efforts to move more free-tier users to its $10/month subscription service, Spotify has redoubled its efforts to ink long-term licenses with major record labels. One potential option is that the labels would limit new releases to Spotify’s subscription tier in exchange for a lower percentage of subscription revenue. Another possibility is that Spotify will provide artists data and promotion in exchange for reduced royalty payments. Spotify is trying to settle the deals by end of 2016, say sources. Continue reading Spotify Focuses on Major Record Label Deals to Boost Profits

Sony Music, Universal Music and Merlin Network, which represents 20,000 independents, have agreed to license songs to Pandora for its two new music services. Pandora plans to offer the advertising-free Pandora Plus and an on-demand service similar to Spotify. The company is also still in talks with Warner Music in an attempt to ink a deal with this third-largest music rights holder. Pandora hopes to launch both of its new services by the end of 2016. As of June 30, Pandora says it has 78.1 million active listeners. Continue reading Sony, Universal Ink Deals with Pandora for Streaming Services

The recording industry is concerned about a burgeoning trend: stream-ripping. Numerous mobile apps and sites now allow users to download MP3 files from songs on YouTube, thus circumventing both advertising and paid streaming services such as Spotify and Apple Music. The music industry has had reasonable success in fighting the kind of peer-to-peer file sharing that hurt CD sales, but this new kind of piracy is proving much harder to combat because it sources legitimate streaming services. Continue reading Stream-Ripping, the New Music Piracy, Becoming Problematic

According to unnamed sources, Amazon is actively pursuing the rights to numerous sports, including the French Open tennis championship and professional rugby as well as golf, soccer, auto racing and U.S. sports such as basketball and baseball. Capturing rights in the U.S. will be challenging since CBS, NBCUniversal, Fox, Turner Sports and ESPN have inked long-term contracts for most major sporting events. In talks, Amazon points to the popularity of Amazon Prime, which reaches an estimated 63 million U.S. subscribers. Continue reading Amazon Said to Be Looking Beyond Video to Streaming Sports

After comparing 5,000 streaming clips from 500 titles using x264, x265, and libvpx codecs, Netflix found x265’s implementation of HEVC to be the most efficient while offering the highest quality. However, “whether that matters in light of compatibility and licensing issues isn’t so obvious,” notes Streaming Media. The study, which focused on VOD rather than live, compared codecs and not specifications (instead of comparing encoding specs, Netflix compared implementation of the specs). “Netflix’s tests clearly show that x265 is 20 percent more efficient than libvpx when encoding premium content using the most stringent settings, and measuring quality with VMAF.” Continue reading Netflix Video Codec Study Finds x265 More Efficient Than VP9

GoPro has been in the content business for some time, making money with branded video (including partnerships with Ford and Wimbledon), a content licensing portal (especially action-sports clips shot with GoPro), and a YouTube channel with more than 4 million subscribers and 1.25 billion video views. Now, GoPro is committing to entertainment in a new way: launching 32 short-form shows through the end of 2016 and into early 2017. The company is differentiating itself from rivals by offering video editing tools in the cloud. Continue reading GoPro Doubles Down on Entertainment with 32 New Programs

Google has reportedly suspended its Project Ara initiative to build a modular smartphone with interchangeable components. The goal was to develop a phone that consumers could customize with cameras, speakers, batteries and other parts in an effort to prolong lifespan and reduce electronic waste. “The move marks an about-face for the tech company, which announced a host of partners for Project Ara at its developer conference in May and said it would ship a developer edition of the product this autumn,” according to Reuters. “Axing Project Ara is one of the first steps in a campaign to unify Google’s various hardware efforts, which range from Chromebook laptops to Nexus phones.” Continue reading Google Shutters its Project Ara Plans to Build Modular Phones

This year, for the first time, streaming music topped digital downloads as the largest source of music revenue in the U.S. The two biggest sources are Spotify and Apple Music, but SoundCloud, Deezer, Tidal and Google Play are also active. Now, both Amazon and Pandora are readying their entries into this crowded market. Both companies have almost locked-up licensing deals with the largest record labels. Amazon plans to launch its on-demand service as early as September, and Pandora will unveil its service later this year. Continue reading Amazon, Pandora Ready Launch of Music Streaming Services

The operation of drones has sparked heated debate and industry angst regarding issues of safety, privacy and regulation. Now, the Federal Aviation Administration (FAA) has issued its first detailed rules that clarify nationwide licensing requirements for pilots and bans operation of drones at nighttime. But it still hasn’t touched the hot button topics of privacy protections, high altitude flying, drones heavier than the currently-approved 55-pounds and other issues. In that vacuum, local governments are coming up with their own regulations. Continue reading FAA Issues Drone Operation Rules, Privacy Issues Unresolved

Spotify is readying an initial public offer next year, pressured by its most recent financing. Private-equity firm TPG, hedge fund Dragoneer Investment Group and Goldman Sachs are part of a group that issued $1 billion in convertible debt, which carries an interest rate that increases until Spotify’s IPO. Investors also get a discount on shares if they convert debt into equity — 20 percent now, but increasing if Spotify delays the IPO. One problem prevents Spotify from doing so: long-term rights for the music it plays. Continue reading Spotify Prepares to Go Public, Seeks Long-Term Music Rights

New York-based Digital Media Rights is attempting to bridge the gap between cable networks and YouTube with the launch of its new Yuyu streaming service. Yuyu, which joins an increasingly crowded SVOD market, currently features more than 350 titles with an emphasis on content from independent publishers. The video aggregation company, which has more than 8,000 TV shows and movies under license and distribution deals with Hulu and Amazon Prime, plans to launch three more OTT services this year, adding to its portfolio that includes Asian Crush and Midnight Pulp. Continue reading SVOD Service Yuyu Offers Titles from Independent Publishers

Chinese online-video network PPTV paid about $24 million for the streaming rights to fantasy feature “Warcraft,” based on the popular videogame series by Blizzard Entertainment. The film has so far grossed more than $433 million worldwide and has been successful with Chinese audiences. It will begin streaming next month on PPTV as a result of the record high deal, in what could also mark a significant milestone in film distribution. “This could be one of the beginning steps in having China become a huge marketplace for streaming services,” said comScore senior media analyst Paul Dergarabedian. Continue reading Streaming ‘Warcraft’ in China Could Lead to New Marketplace

Pandora is expanding beyond its flagship free Internet radio, with two new monthly subscription options. According to sources, the company is near to inking deals with major record companies. Up until now, Pandora hasn’t needed to secure rights because listeners can’t get specific songs on demand, and the company has limited service in the U.S., Australia and New Zealand, where music licensing is automatic in exchange for payments. The new tiers will debut first in the U.S. and then other English-speaking countries. Continue reading Pandora Readies Subscription-Based On-Demand Streaming