Video Ads on the Increase as Online Video Views Reach Record Levels

  • Have you noticed a recent increase in ads that appear in Web videos?
  • We’re watching more Web video than ever before; comScore reports more than 42 billion online video views in the U.S. for October alone. New figures from start-up FreeWheel indicate we’re also watching more Web video ads.
  • According to FreeWheel, which serves and manages video ads for companies such as Turner, Vevo and Fox, there has been a 128 percent ad view growth from Q1 of 2010 to Q3 of this year.
  • Online viewers have also increasingly finished the ads they start watching, especially when accompanied with longer Web videos.
  • “Big picture, the Web video business is still very much a work in progress,” reports AllThingsD. “And there’s still a long way to go: Video ads grew 42 percent in the first half of the year, but still only make up 6 percent of the overall Web ad business. But if it keeps headed in this direction it’s going to quickly make up ground.”

Pay TV Usage Caps: Will Watching Netflix Lead to Higher Cable Bills?

  • Netflix subscriptions could end up costing consumers $28 a month instead of $8 if cable companies decide to add charges for Web streaming.
  • “U.S. providers like Time Warner Cable have weighed usage-based plans for years as a way to squeeze more profit from Web access, and to counter slowing growth and rising program costs in the TV business,” reports Bloomberg. “While customer complaints hampered earlier attempts, pay TV companies are testing usage caps and price structures that point to the advent of permanent fees.”
  • As online video streaming increases in popularity, Web data usage soars. Some companies have penalties in place for customers that exceed their monthly gigabyte allowance, while others do not.
  • Adding charges will not only help cable companies’ Internet revenue, but also possibly boost pay TV service by disincentivizing online services like Netflix and Hulu.
  • A Netflix spokesman told Bloomberg, “[The practice] is not in the consumer’s best interest as consumers deserve unfettered access to a robust Internet at reasonable rates.”

Beta Release: Cinefy App Provides Video Editing and Effects for the iPhone

  • Chairseven and App Creation Network recently announced the beta availability of Cinefy, “a mobile video editing and effects platform for iPhone where users create and share videos mixed with high quality visual effects,” according to the press release. “Cinefy empowers users with no editing skills to quickly insert footage, add music and apply visually stunning effects with its intuitive and simple interface.”
  • The app offers branded effects packs which opens a marketing opportunity for TV and game studios to promote in an engaging way and possibly draw “massive viral exposure.”
  • Users can export their videos to their device’s camera roll in addition to Facebook, YouTube and Vimeo. Cinefy will eventually be available for iPads and Android devices.
  • To help create soundtracks, Friendly Music has teamed up to provide a catalog of songs, “offering 100 percent legal and all rights-cleared music for personal and custom online media creations.”

In Development: Would an HTC Facebook Phone Prove to be the Next Zune?

  • Microsoft lost trust from its hardware partners with the Zune MP3 player which ultimately caused the product to fail. The new Facebook phone could be equally disastrous by pinning HTC against its current software partners.
  • HTC has strong relationships with Google for Android OS and Microsoft for Windows Phone 7, relationships that could be jeopardized in moving forward with a Facebook phone.
  • “One of the key standout features for Windows Phone 7 is social networking and in particular, Facebook integration (Facebook and Microsoft are partnered),” reports Digital Trends. “Google, on the other hand, is at war with Facebook with Google+, and monetizes Android after-the-fact with services like Google+.”
  • “Right now Apple, Microsoft and others spend lots of time on Facebook, but they aren’t likely to continue if they view Facebook as a potential competitor,” suggests the post. “Facebook should be focused on building the best Facebook app for every major platform.”
  • In a related survey conducted by AllThingsD, results suggest an overwhelming number of readers had little to no desire for a Facebook phone (81 percent indicated no interest and 12 percent said they would consider it).

Facebook Stats: Average User Age on the Rise and Females Take the Lead

  • A 2011 study conducted by the Pew Internet and American Life Project discovered some interesting statistics regarding current Facebook users.
  • The average age of the Facebook user rose to 38 in 2010 from 33 in 2008.
  • On an average day, 20 percent of users commented on another’s picture, 22 percent commented on another’s status, 15 percent updated their own status, 10 percent sent a private message and 26 percent selected “like” for another’s content.
  • The average user has 229 friends: 22 percent from high school, 9 percent from college, 10 percent from work, 8 percent are immediate family, and 7 percent are people they’ve never met (see infographic for further breakdown).
  • Daily engagement on Facebook by social networking users accounted for 52 percent compared to Twitter’s 36 percent, Myspace’s 7 percent and LinkedIn’s 6 percent. Another noteworthy figure: “Social media users are ‘disproportionately female,’ notes Pew, with women making up 56 percent of social networking sites, 52 percent of email users, and 55 percent of instant message users,” reports Huffington Post.
  • The complete 85-page Pew report is available online.

Shopping Trend: Retailers Find that Consumers Prefer Apps to Websites

  • New iPad apps are rolling out this holiday season to entice the eight percent of online shoppers that own tablets.
  • That percentage may seem small, but Forrester Research found that 60 percent of tablet owners use their devices to shop and many prefer them to smartphones or computers for shopping. For clothing company Anthropologie, iPad shopping accounted for six percent of sales this year and is expected to rise to 20 percent with the introduction of their new app.
  • These new apps aim to provide a more interactive experience and capture some of the in-store essence by revamping their electronic catalogs and adding new features to their shopping pages.
  • Revel Touch has built apps for multiple companies including functions like a “virtual dressing room,” that allows users to create outfits and the ability to share choices on social networks. Apps allow tablet shoppers to zoom in, see videos and find the sizes they want with ease.
  • “You can bring the objects to life on an iPad and you can’t do that on paper — and you don’t have to chop down a tree,” the CEO of Catalog Spree told The New York Times. The company also reported that, on weekends, its users spend almost eight times as long on the retailers’ app as they do on the retailers’ Web sites.

Big Data Predictions for 2015: Are We Ready to Manage 8 Zettabytes?

  • CenturyLink has released an infographic illustrating that 1.8 zettabytes of data will be created this year — and by 2015, that number will be 7.9 (equal to 18 million times the digital assets in the Library of Congress).
  • By the end of 2012, 50 percent of consumer Internet traffic will be devoted to video, making the largest contribution to the data boom. However, in 2015, most of the traffic will come from wireless devices.
  • Much of the data produced by consumers is “shadow data,” things like search history.
  • The infographic also details resource growth and notes “even as IT costs are dropping, capital expenditures are rising.”
  • “Naturally, enterprises hold most of the data, whether it’s created by consumers or by knowledge workers on company time,” reports ReadWriteWeb. “That’s a lot of responsibility for managing data: What’s your company’s data strategy to handle the incoming deluge of data?”

The Surface: Microsoft Table-Sized Tablet to Ship by Early 2012

  • The Surface 2.0 SDK, demonstrated at last year’s CES, will be released sometime early next year. Pre-orders can be placed with Samsung resellers in 23 countries (including the United States).
  • The $8,400 table-sized tablet, also wall-mountable, is four inches thick and recognizes hands, fingers and objects placed on the screen. It is currently known as the “Surface” or “Samsung SUR40 for Microsoft Surface.”
  • “Running Windows 7 and Surface 2.0 software, SUR40 has a 40-inch screen measured diagonally, 1,920×1,080 resolution, a contrast ratio of 2,000:1, an AMD GPU along with 2.9GHz Athlon X2 dual-core processors, 320GB of storage, and 4GB of memory,” reports Ars Technica. “Ports include Ethernet, HDMI, and 4 USB 2.0 ports.”
  • Microsoft targets the Surface for professional use and envisions it being used in a number of industries including automotive, education, finance, healthcare, hospitality and retail.
  • The original Surface is already in use by the Hard Rock Cafes, Microsoft retail stores, MSNBC, Disney, Sheraton hotels and others.

Groups Take Sides in Battle Over Proposed Internet Censorship Bill

  • Nine Internet giants (Google, eBay, AOL, Facebook, Yahoo, Zynga, LinkedIn, Mozilla and Twitter) have joined forces to place full page ads in The New York Times, The Wall Street Journal, Washington Post and The Washington Times expressing their objection to the Stop Online Piracy Act (SOPA) and the PROTECT IP Act.
  • The measures protect against copyright infringement by requiring “technology companies and Internet service providers to block access to any website that the entertainment industry believes ‘engages in, enables or facilitates’ copyright infringement,” reports Digital Trends.
  • The proposed pieces of legislation “have strong bipartisan support in Congress, as well as backing from the Motion Picture Association of America, a variety of Hollywood union organizations, and even Master Card and Pfizer.”
  • In a related post, The Next Web reports that the Business Software Alliance (BSA) supports SOPA and commends Congress for “curb[ing] the growing rash of software piracy and other forms of intellectual property theft that are being perpetrated by illicit websites.”
  • Member of BSA include Adobe, Apple, Dell, Intel, Microsoft and 24 other tech companies.

Copyright Issues: Will 3D Printing Prove to be a Disruptive Technology?

  • 3D printers can reproduce objects by spraying layers of plastic, metal or ceramics into shapes based on photos or designs. Some models already cost less than a computer did in 1999.
  • The technology allows users to copy vases, board game pieces, protective covers for phones and even pieces of furniture. Imagine eventually being able to “print” parts for cars, bicycles, computers, cameras and much more.
  • “Call it the Industrial Revolution 2.0,” suggest The New York Times. “Not only will it change the nature of manufacturing, but it will further challenge our concept of ownership and copyright. Suppose you covet a lovely new mug at a friend’s house. So you snap a few pictures of it. Software renders those photos into designs that you use to print copies of the mug on your home 3D printer.”
  • “Copyright doesn’t necessarily protect useful things,” said Michael Weinberg, a senior staff attorney with Public Knowledge, a Washington digital advocacy group. “If an object is purely aesthetic it will be protected by copyright, but if the object does something, it is not the kind of thing that can be protected.”

Risk-Taker: Amazon Betting Big on Prime Customer Loyalty Program

  • Amazon is willing to lose hundreds of millions of dollars annually on the Amazon Prime customer-loyalty program because of the increased consumer spending it creates.
  • “The cost of Prime underscores the willingness of Amazon Chief Executive Jeff Bezos to shell out money as he continues the company’s transition from an online retailer of paper books, to an Internet megamall that sells an array of products from various companies, to a seller of digital goods and even its own devices, such as the Kindle Fire tablet computer,” reports The Wall Street Journal.
  • “[Fiona Dias, VP of rival service Shoprunner] estimated that after joining Prime, members tripled the amount of money they spent on Amazon to $1,500 a year,” the article indicates. “She estimated up to 40 percent of Amazon’s domestic revenue, which totaled $18.7 billion in 2010, comes from Prime members.”
  • Some investors look unfavorably on Amazon’s subsidizing (the company loses $90 a year on each Prime subscriber and sells each Kindle model at a loss of $10+), but analysts say the costs are offset by Amazon’s profitable website.
  • Prime will be offered free for 30 days on the new Kindle Fire.

Secret Google Lab Where the Future is Imagined and Robots Run Free

  • A top-secret lab called Google X is tackling a list of 100 “shoot-for-the-stars” ideas, including an elevator to outer space, a refrigerator connected to the Internet that orders groceries as they run out, and robots that serve a variety of tasks.
  • A Google worker familiar with the project likened it to how the CIA is mysteriously run. “In interviews, a dozen people discussed the list; some work at the lab or elsewhere at Google, and some have been briefed on the project,” reports The New York Times. “But none would speak for attribution because Google is so secretive about the effort that many employees do not even know the lab exists.”
  • Most of the ideas are only conceptual at this point, but others may eventually see the light of day. One idea that may reach the public involves driverless cars. It would not only provide a new business for Google, but promote the company’s navigation or information technology for cars as well as location-based ads.
  • Additional ideas in development include ways of connecting objects to the Internet, such as a garden planter that could be watered remotely, a coffee pot set to brew from another location, or a light bulb that could communicate wirelessly with Android devices.

Revolutionizing Wait Time: DreamWorks and Intel Partner on Rendering

  • Animators at DreamWorks have to work in low resolution — “as if blind” — because rendering takes a week for 3 seconds worth of animation.
  • “CEO Jeffrey Katzenberg said his company’s four-year partnership with Intel is developing scalable multicore processing methods and software that will change all that,” reports Forbes.
  • Katzenberg explains the partnership is dedicating tens of millions of dollars in an effort to reengineer animation software “in a way that will halve the number of steps in the production line and ramp up animators’ productivity between 50 and 70 times.”
  • The technology will also be widely applicable in areas that use high-end rendering, including medicine, oil, aircraft design and more.
  • “This literally is going to revolutionize waiting,” suggests Katzenberg.

Study says 80 Percent of Mobile Users Multitask while Watching TV

  • Digital advertising agency Razorfish recently partnered with Yahoo to conduct a study regarding consumer behavior and the simultaneous use of television and mobile devices.
  • “While 80 percent of mobile users multitask in front of TV, 70 percent say they multitask once a week, and 49 percent on a daily basis,” reports Lost Remote. “More than 60 percent check their phones at least ‘once or twice’ during a show with 15 percent active on their devices the entire time.”
  • These multi-taskers are primarily attracted to content related to reality shows, news, comedy, sports and food.
  • The study suggests that 38 percent believe the mobile activity enhances TV broadcasts, while an equal 38 percent find it distracting.
  • Lost Remote reports: “94 percent of mobile multitaskers communicate while watching TV, while 60 percent are looking up content. Of the communicators, the most popular activities in order are: texting, talking, email, social networking and IM.”
  • Razorfish and Yahoo also learned that most of the mobile activity takes place during commercial breaks.

Study: 300 Percent Growth in Mobile App Downloads Expected for 2011

  • Mobile analytics firm Flurry has released new estimates based on iOS and Android app-enabled devices.
  • According to the report, 25 billion apps will be downloaded in 2011, marking 300 percent growth from last year’s six billion.
  • Five billion Apple and Android apps are expected to be downloaded in December alone, based on the surge typically associated with mobile shopping and people on break looking for entertainment.
  • Revenue from the U.S. market will reach $2.5 billion, compared with 2010’s $1 billion.
  • The increase in app catalogs has helped the increase. iOS offers about 500,000 apps and Android is around 350,000.
  • ReadWriteWeb also points out that only 43 percent of U.S. consumers currently have smartphones, but the number is expected to reach 50 percent by Q3 2012, which will also fuel app downloads.