Model for Success: After 10 Years, MLB.tv Draws 3.7 Million Subscribers

  • Created ten years ago by MLB Advanced Media, the online video service MLB.tv has since become one of the most successful video services, earning millions of dollars in revenue for its popular baseball content.
  • MLB.tv’s success is due in part to its devoted fans. The first game offered on the service — NY Yankees vs. Texas Rangers in 2002 — had 30,000 viewers worldwide.
  • “Those 30,000 fans have turned into millions of fans across the world and that little experiment is now a mega-million dollar business,” GigaOM reports. “Since its launch, the service has broadcast 1.5 billion live video streams and has accumulated a total of 3.7 million subscribers.”
  • The service also rose to the top by being ubiquitous. Offered on a variety of platforms and devices — from Apple TV to the Kindle Fire — MLB.tv is available to customers no matter how they access their content.
  • “So far in 2012, MLB.tv has seen 27.3 million mobile live video streams,” notes the post. “In the first week of 2012 baseball season, MLB saw 3 million downloads of its At Bat 2012 iPad app. At present there isn’t a professional sports league that holds a candle to MLB’s online arm.”

YouTube Tests Moodwall: Categorizes Videos with One-Word Descriptors

  • Some music services let you stream music based on mood, but how would you like to watch videos based on how you’re feeling? This is a new concept that YouTube is trying out with its Moodwall.
  • Featured on YouTube’s home page in random limited testing, the Moodwall shows a collection of video thumbnails for various categories including “funny,” “adorable” or “catchy.” The page offers users the option to “explore videos by vibe.”
  • Google gave exclusive access to various users to test out the new feature, but most feedback has been bewilderment, Mashable reports.
  • “My browse page in YouTube has been replaced with some weird page that calls itself Moodwall,” commented one user. “Does anybody [know] what is a Moodwall and how it can be removed?” asked another.
  • The post includes a 1-minute video report.

YouTube Looks to Fund New Projects, Cut Unsuccessful Original Channels

  • According to insiders, YouTube will be cutting some less successful original channels by the end of the year, continuing its effort to clean up the quality of its content.
  • YouTube execs will also be deciding on new projects to fund, “as it hones in one the most lucrative models,” the New York Post writes.
  • “The weeding out of the less-popular videos comes amid a new emphasis at YouTube on the time viewers spend on the channel — and not just how many views each channel gets,” explains the article. “YouTube is also looking to upgrade the quality of its videos and tweaked its algorithm in April to help the move.”
  • The added emphasis on quality and the funding of original content may have contributed to an increase in viewing. “Since January total hours watched on YouTube jumped 33 percent to 4 billion from 3 billion,” notes the article.
  • And as viewing goes up, so does YouTube’s advertising revenue. One Citigroup analyst anticipates the site’s revenue to increase 50 percent from 2011 to $3.6 billion.

Kodak Shooting for Turnaround with Sale of Film and Other Businesses

  • As part of its plan to emerge from bankruptcy, Kodak is selling off more of its businesses. This time, its claim to fame, the camera-film business, is getting axed.
  • Within the first six months of 2013, Kodak hopes to break from bankruptcy protection, which involves paying off $660 million owed to banks.
  • “In addition to print film, Kodak’s businesses for sale include kiosks that develop digital photos as well as heavy-duty commercial scanners and related software used by large companies such as health-insurance firms to process thousands of forms from customers. A business that takes photos of theme park visitors for souvenirs is also up for sale,” the Wall Street Journal reports.
  • The article explains the businesses for sale are categorized as either “personalized imaging” or “document imaging.” The two groups make $1.3 billion and $466 million a year in revenues, respectively.
  • Kodak was hoping to get between $2.2 billion and $2.6 billion from selling its patent portfolio. The auction for the patents has dragged on and, according to insiders, the company will have a difficult time getting that much for its portfolio.
  • Kodak has already cut off other businesses to raise money, including its photo-sharing website, digital cameras, video cameras and digital picture frames. Ultimately, the company will focus on consumer businesses, primarily printing.

The Internet of Things: Facebook Updates its iPhone App with MQTT

  • Facebook implemented a new technology in the messaging features on its iOS app. According to ReadWriteWeb, the new update “could have a potentially big impact on the future of the Internet of Things.”
  • “The technology is called Message Queuing Telemetry Transport (MQTT), an IBM-developed protocol for real-time messaging over networks with low power and bandwidth,” the post explains. “For Facebook app end-users, the immediate effect of using the push-driven protocol for the updated app won’t immediately be apparent, but it portends some potentially big features down the line.”
  • For the Internet of Things to become a reality, devices needs to seamlessly communicate with each other and users.
  • “Messaging in the Internet of Things sector is still gelling around one standard implementation, as device manufacturers figure out how to get sensors and other micro-devices to best communicate with the Internet and from there the rest of the world. MQTT is one such protocol,” suggests ReadWriteWeb.
  • Being adopted by Facebook could be the first step in MMQT becoming the standard.

Apple Filing Specifies which Samsung Devices Should be Banned in U.S.

  • In the wake of its patent infringement case with Samsung, Apple has filed a notice stating which Samsung products it is looking to have banned in the U.S.
  • “Despite having received a finding of infringement from the jury on most of the 28 products in play in the case, it looks like Apple is only going after an injunction on eight of them — all smartphones,” reports The Verge. “That’s not terribly surprising given the fact that many of the products in the case are no longer available in the U.S.”
  • The filing lists the following devices: Galaxy S 4G, Galaxy S2 (AT&T), Galaxy S2 (Skyrocket), Galaxy S2 (T-Mobile), Galaxy S2 Epic 4G, Galaxy S Showcase, Droid Charge and Galaxy Prevail.
  • “With infringement already established… Apple must convince the court that it will be irreparably harmed if these handsets are not banned in the country. It’s easier to make this argument after a positive jury verdict, but an injunction is by no means a foregone conclusion,” notes the post. “It’s easier for Apple to establish irreparable harm when the focus of the injunction is on products it may actually compete against in the market.”
  • “We will take all necessary measures to ensure the availability of our products in the U.S. market,” responded Samsung in a statement.

Will Samsung Remain the Sole Supplier of Chips for iPhone and iPad?

  • Samsung has announced its plans to appeal the U.S. court verdict that found the company willfully infringing on Apple’s patents. Even as it looks to appeal the $1.05 billion decision, Samsung “will not want to put at risk its Apple supply contract which is worth billions of dollars,” reports Reuters.
  • According to a Samsung counsel, Samsung’s chips, processors and screens account for 26 percent of the iPhone’s component cost.
  • “Samsung’s component sales could hit $13 billion next year and bring in $2.2 billion in operating profit, according to a recent estimate by Morgan Stanley. That’s nearly 8 percent of estimated group operating profit for next year,” the article states.
  • Apple has been looking to become less reliant on Samsung by diversifying its supply chain. Likewise, Samsung is looking to expand its customer base beyond Apple. Even so, the two companies are still intertwined.
  • “Apple needs Samsung to make the iPhone and iPad. Period. Samsung is the sole supplier of Apple’s processing chips and without Samsung, they can’t make these products,” says analyst James Song of KDB Daewoo Securities. “Samsung might be considering lots of options to leverage its components business’ importance and pressure Apple, and Apple could be also well aware of this.”

Samsung Court Loss to Apple May Prove Beneficial for Google Android

  • Even though it may seem like Samsung’s court experience spells trouble for Google’s Android OS, ReadWriteWeb argues that the decision will actually help Android fight fragmentation.
  • “Android has often been criticized for the fragmentation the open source platform undergoes every time a hardware vendor makes modifications to the core Android platform in order to differentiate itself from the vendor’s competitors,” notes the article. “In addition to confusing Android users who switch brands, such modifications have made it difficult for application developers to write apps that work on all Android device/OS combos.”
  • As Google explained in a statement, the features that the court decided were infringing upon Apple’s patents had been added by Samsung — and not part of Google’s core OS.
  • “Google seems to be saying that if the Android vendors stick closer to the core Android operating system — and not try to add on so many of their own bells and whistles, they’ll be more likely to avoid the kinds of disasters that sliced 7 percent off Samsung’s market cap on Monday,” the article states.
  • Google recently acquired Motorola Mobility, a move that will help it create a bulletproof “home” platform for Android.
  • “Motorola’s ‘safe’ platform could also serve as a beacon for other Android vendors: a version of Android that’s less vulnerable to lawsuits could be very attractive to Motorola’s competition, even if it means working more closely within Android’s core look and feel,” ReadWriteWeb suggests.

Google Fiber Pilot Launches: Company Bets Big on High-Speed Internet

  • Google has rolled out its Google Fiber initiative that offers 1 gigabit of Internet speed to users for $70 a month. Its pilot run in Kansas City is expected to cost the search giant $500 million, but Google could stand to gain much more.
  • “Google Fiber also offered the ability to record eight TV programs at a time. And to download a single high-def movie in seven seconds (versus 22 minutes for a 5mbps connection). And a free Nexus 7 tablet as a remote control. And a free terabyte of data storage on Google Drive,” explains Fortune. “And, on top of all this, no data caps.”
  • Skeptics believe the project will not disrupt the control of the powerful ISPs, but Google hopes to challenge the current low speeds and high prices.
  • “As video chat, streaming media and photo sharing have increased, people are finding their broadband isn’t broad enough anymore. The U.S. is 15th on Akamai’s list of the countries with fast broadband. Google Fiber offers faster speeds at lower prices than most ISP’s offer today,” the post states.
  • “A week after the announcement, Google had signed up more than 7,000 homes in Kansas City, 4,900 in Missouri and 2,100 in Kansas. That’s about 5 percent of the cities’ total homes,” Fortune reports. “Residents are halfway through the six-week rally to get others in their designated ‘fiberhoods’ to sign up. As of this week, some neighborhoods have as much as 39 percent of their homes plugged in.”
  • Google isn’t just making money on subscriptions. “…the surge in broadband content could bring Google new revenue from Web and TV advertising. And by becoming an ISP, Google could win a strong presence in many U.S. living rooms.”
  • Even if Google doesn’t take over the ISPs’ control, “this initiative is less about a long-term revenue opportunity for Google and more about pushing current Internet providers to increase speeds and innovate (which could benefit Google in the long run),” says analyst Ben Schacter of Macquarie Securities.

LTE News: FCC Approves Verizon $3.9 Billion Acquisition of 4G Spectrum

  • Although it still has to be approved by a federal judge, Verizon’s $3.9 billion acquisition of 4G spectrum from various cable operators just cleared a big hurdle, getting the green light from the FCC.
  • Verizon stands to gain 20 MHz of Advanced Wireless Services (AWS) licenses from Comcast, Time Warner Cable, Cox Communications and Bright House. The wireless carrier will use the new spectrum to build out “a supplementary high-capacity LTE network parallel to its current near-nationwide 4G infrastructure,” explains GigaOM.
  • However, in order to get FCC approval, Verizon had to commit to selling a good portion of its new AWS licenses to T-Mobile as well as selling any unused 700 MHz spectrum.
  • The FCC tacked on two additional requirements before giving the deal its stamp of approval. “The big one is a requirement that Verizon open its LTE network to roaming partners, a key demand of rural operators. The second is that Verizon complete 70 percent of its network over the new bands. While billed as concession to the FCC, it seems more like a concession to Verizon,” the article states.
  • An added win for Verizon; “the approval implicitly gives Verizon and its new cable buddies permission to divide the wireline and wireless markets between them. The cable companies will resell Verizon’s mobile service, and Verizon can now sell cable broadband and TV service in any area where it doesn’t offer its FiOS fiber-to-the-home connections,” GigaOM reports.
  • This collaboration could potentially hurt competition, and without wireless pressure on cable providers, there could be less incentive to regularly improve the infrastructure.

Apple Awarded More Than $1 Billion in Landmark Patent Decision

  • Following 21 hours of deliberation, the jury has sided with Apple in one of the biggest patent lawsuits to date. Samsung now has to pay $1.05 billion in damages.
  • The jury upheld Apple’s utility and design patents; found willful infringement on 5 of 6 patents; and decided “Samsung ‘diluted’ Apple’s registered iPhone, iPhone 3 and ‘Combination iPhone’ trade dress on some products, not on others,” CNET reports. However, according to the jury, “Samsung did not violate antitrust law by monopolizing markets related to the UMTS standard.”
  • Apple originally sought $2.75 billion in damages. Samsung had asked for $421 million in its countersuit.
  • “Today’s verdict should not be viewed as a win for Apple, but as a loss for the American consumer,” said Samsung in a statement following the trial. “It will lead to fewer choices, less innovation, and potentially higher prices.”
  • From Apple’s statement: “The lawsuits between Apple and Samsung were about much more than patents or money. They were about values. At Apple, we value originality and innovation and pour our lives into making the best products on earth. We make these products to delight our customers, not for our competitors to flagrantly copy. We applaud the court for finding Samsung’s behavior willful and for sending a loud and clear message that stealing isn’t right.”

New Designs: Will the Wristwatch Become an Extension of the Smartphone?

  • Wristwatches didn’t really catch on until after World War I when people began to ask if it made sense to carry their watch in their pocket. Decades later, people are again asking the same question after wristwatches were replaced by smartphones.
  • Apple, Nike, Sony and multiple start-ups are working to reinvent the wristwatch as an extension of the smartphone. These devices leverage the power of mobile devices to go beyond just telling time.
  • Sony’s Smartwatch, for example, can display emails and tweets. Nike’s FuelBand measures the amount of energy the wearer exerts in a day. Start-up Pebble has created a watch that can play music, display text, and show other information like weather.
  • But some have their doubts about the futuristic-looking devices. “I don’t know if the mass market wants a big display on their wrist if they have a display in their pocket,” suggests Jawbone CEO Hosain Rahman. “The wrist is used for fashion and expression. You can’t just make something functional, and it can’t just do fashion, either… If you’re going to do this well, you have to merge the two.”
  • Rahman also suggests consumers might purchase multiple wrist devices for various purposes, which would be appealing to manufacturers. “You don’t wear the same thing when you go running that you do when you’re going to dinner,” he says.

Is F2P Gaming an Innovative Distribution Model or New Form of DRM?

  • Yves Guillemot, CEO of gaming company Ubisoft, says the free-to-play model of PC gaming allows the company to “get revenue from countries where we couldn’t previously — places where our products were played but not bought.”
  • According to Guillemot, F2P games help brands last longer and bring content over longer periods of time. He acknowledges that very few F2P consumers will actually pay, but the company fares worse with high piracy rates.
  • “On PC it’s only around five to seven percent of the players who pay for F2P, but normally on PC it’s only about five to seven percent who pay anyway, the rest is pirated,” Guillemot says. “It’s around a 93-95 percent piracy rate, so it ends up at about the same percentage.”
  • Ars Technica questions whether piracy rates are really that high, noting that pirates are actually a small percent of a potential audience. The article also adds that every pirated copy doesn’t necessarily equate to a lost sale (some pirates couldn’t pay for what they download).
  • “If you complain about the fact that 95 percent of the potential audience for your traditional game is being lost to piracy, you should be equally perturbed that 95 percent of your potential audience is playing your free-to-play game without ever becoming a paying customer,” Ars Technica argues. “Yet Guillemot seems to treat free-to-play freeloaders as a necessary cost of doing business while simultaneously treating pirating freeloaders as a scourge that is ruining the traditional PC gaming business.”
  • “Guillemot’s argument seems to reduce free-to-play gaming from an exciting new way to get players interested in a game to a new form of digital rights management, where the most interesting bits of a game are hidden behind an unpiratable paywall,” notes the article. “That’s the wrong way of looking at things.”
  • “As Stardock’s Brad Wardell has noted, the real threat to having a successful PC game is not piracy, but obscurity. Both piracy and legitimate free-to-play options can be seen as ways of avoiding that obscurity while making only marginal sacrifices to a game’s actual economic success.”

Proposal: Emergency Switch Turns Private Routers into Public Resource

  • Wireless researchers in Germany want to give first responders a “switch” to disable security mechanisms on private wireless routers. The project is aimed at bolstering public communications if they were to fail in an emergency.
  • “This would allow first responders to use all the routers within range to enhance the capabilities of the mesh networks that allow them to communicate with each other,” Ars Technica explains. “In a mesh network, each node or device can route traffic to the other devices on the network through a series of hops. Adding devices (in this case wireless routers) thus improves the network’s stability and performance.”
  • The technology would not be difficult to implement on current wireless routers, especially considering many home owners already have guest networks set up.
  • The research paper does not explicitly state the steps to creating this “emergency switch,” nor does it discuss how abuse of privacy will be prevented. Private wireless traffic would remain private “in theory,” Ars Technica writes, adding “we think this particular idea could raise more problems than it solves.”
  • “From a privacy standpoint, we think it should be voluntary on the part of users, if it is ever implemented at all,” the article states, noting that it’s useless for the government if not widely accepted. “Deploying the system widely might require intrusive legislation, and software upgrades by router manufacturers that forcibly take away users’ administrative control is something we’re not a fan of, either.”
  • The paper says many aspects of the proposal will still need to be researched, but it does show that using private routers would greatly improve network performance if emergency communications breakdown.
  • One reader who commented on the post suggests making the program opt-in with rewards like tax credits to incentivize adoption.

Facebook Data: Processing 2.5 Billion Pieces of Content Every Day

  • Jay Parikh, VP of engineering for Facebook, released numbers this week showing just how big Facebook’s data is and how it benefits the social network.
  • “[Facebook’s] system processes 2.5 billion pieces of content and 500+ terabytes of data each day,” notes TechCrunch. “It’s pulling in 2.7 billion Like actions and 300 million photos per day, and it scans roughly 105 terabytes of data each half hour.”
  • Parikh says all this information helps Facebook release new products, gauge user reactions and tweak designs.
  • “By looking at historical data, we can validate a model before putting it into production,” Parikh says, explaining that Facebook can assess impact without actually implementing changes. “We put data in a simulation, and can see ‘will this increase CTR by X?’”
  • The benefits of big data are also passed on to advertisers to show how successful ads are geographically and among various demographics.
  • All this data encourages questions of privacy, but TechCrunch reports there are many safeguards in place. “All data access is logged so Facebook can track which workers are looking at what,” the post explains. “Only those working on building products that require data access get it, and there’s an intensive training process around acceptable use.”
  • “And if an employee pries where they’re not supposed to, they’re fired. Parikh stated strongly ‘We have a zero-tolerance policy.'”