Most consumers who watch television programs or movies on their wireless devices are not actually doing so while on-the-go, suggests a new report from the Interactive Advertising Bureau. The IAB report found that 63 percent of viewing takes place at home, while 36 percent takes place in a room that already has an existing device available to watch the content.

The report notes that two-thirds of respondents watch more than one hour of video a week on their smartphones or tablets. However, 85 percent of it is consumed in short bites of less than 10 minutes, according to VentureBeat.

“We need to see mobile as a primary screen for on-demand consumption, not as an afterthought,” says David Levin, president of digital agency 360i.

The report also points out that entertainment content is the most consumed, with music in the lead, followed by movie trailers, tutorials and funny short video clips. Perhaps most interesting to advertisers, the IAB study learned that 53 percent of respondents indicated they’re okay with mobile video advertising and 48 percent said the ads should relate to the video content being watched.

“The perfect search engine would really understand whatever your need is,” says Google CEO Larry Page. And that’s exactly what the search giant wants to do. Moving past mathematical statistics and indexing, Google is building up its Knowledge Graph, a new database for understanding “things, not strings.” Continue reading Google Wants to Change Everything You Know About Online Search

After two months of testing, Facebook Gifts is rolling out publicly to U.S. users. TechCrunch predicts that Facebook could earn between $127.5 million and $1.02 billion per year with the social commerce product.

“It lets people choose a friend, often someone who’s birthday or wedding it is, and give them a real-life gift or gift card,” explains the post. “At first it only allowed a few users to access the beta, but then let the service grow organically so anyone who received a Gift gained the ability to give them. It dropped another couple tens of millions of users into Gifts in late November, and now is finally publicly available so anyone in the U.S. can give to other people stateside.”

Since the social network currently touts roughly 170 million U.S. users, the earnings potential is massive. TechCrunch maps out this potential based on number of users and an assumed average gift amount, and speculates that Gifts could account for 3 to 24 percent of the social network’s annual revenue.

“Basically, Gifts will complement Facebook’s advertising and gaming revenue but won’t replace them,” suggests the post. “If it made $510 million a year, that would be $3 per year in additional average revenue per user in the U.S. That would nearly double the U.S. ARPU from $3.40 to $6.40.”

Of course, if successful, these numbers could increase dramatically with an international release.

As the Google TV platform fails to gain traction, Google is looking to sell its Motorola Home Business, which is responsible for building set-top boxes for cable providers. The Motorola cable box business was acquired by Google for $12.5 billion last year. According to Bloomberg, Google has received multiple offers, the most compelling coming from Arris Group Inc. and Pace Plc. Google reportedly wants to sell in order to focus on its high-end smartphone business to ramp up competition with Apple. Continue reading Google Fields Bids from Arris and Pace on Motorola STB Business

It has taken an act of Congress, but the volume of television commercials will finally be turned down. The FCC has been fielding complaints from TV viewers since the 1960s and now the government has taken action with a law that went into effect last week.

“Representative Anna Eshoo (D-California) introduced the Commercial Advertisement Loudness Mitigation Act (CALM), which passed both the House and the Senate — where the vote was unanimous — in 2010,” reports TIME. “President Obama signed it on December 15, 2010.”

The law requires that the commercials be no louder than the broadcasts that accompany them. It has taken two years to implement, since stations and cable operators had to upgrade their equipment.

“Surprisingly, advertisers didn’t put up much of a fight over the legislation, likely realizing how annoying their ads had become to basically everybody who owns a television,” notes the article. “It’s not clear whether turning the sound down on ads will actually hurt ad awareness, but with more of us simply fast-forwarding through commercials on our DVRs, it probably won’t help, either.”

We’ve been following this year’s legal battles of Aereo as major broadcast networks have sued the online TV startup over copyright infringement. Since the service streams TV signals of New York stations for a monthly fee without paying for the right to carry signals, Aereo has created an uproar in the television industry. Now Aereo has begun paying for content, after adding Bloomberg TV to its program lineup.

“We believe that our members will see deep value adding in Bloomberg Television as their ‘go-to’ source for financial news,” said Aereo founder and CEO Chet Kanojia in a written statement. The service also plans to announce expansion to 15 new cities early next year. Kanojia recently said that Aereo is pursuing additional content deals.

“Meanwhile, Aereo and major broadcasters are awaiting a critical decision from an appeals court in their legal battle,” notes the Wall Street Journal. “Last month broadcasters argued their appeal of a lower court’s decision in July denying the broadcasters’ request for a preliminary injunction shutting down Aereo’s service.”

The legal battle could take years to be resolved. “Without a preliminary injunction, Aereo has time to expand and streaming competitors also have a chance to emerge,” notes WSJ.

FAVI Entertainment recently announced it is shipping its plug-and-play SmartStick HDTV enhancer, which it claims is “your Smart TV, Home Theater and PC all rolled into one.”

“Like Roku’s Streaming Stick, it’s a media player that’s been squeezed into a dongle-sized form-factor, running Android 4.1 and packing apps like Netflix along with the Plex media server, a full Web browser and DNLA,” reports Engadget.

The SmartStick streams media through the television’s HDMI port and connects to additional devices wirelessly. “You can even add a $40 wireless keyboard to avoid the usual finger calisthenics,” notes the post.

According to the press release, the device offers apps such as Netflix, HBO Go, Epix, Pandora, Spotify, YouTube, Pinterest, Facebook, Twitter and others. The 4GB device is priced at $50, while an 8GB version costs $80.

“Included with the SmartStick is the Plex app where you can wirelessly deliver videos, documents, music, images, movies directly to your SmartStick enabled television making your TV a hub of entertainment — no subscription needed,” according to the release.

Amazon’s cloud-based music storage and streaming service is now available on Roku and Samsung’s Smart TVs, allowing users to play digital music on a single device. The app “finally gives Roku a good response to Apple TV’s iTunes Match,” notes CNET. Months ago Roku announced that the Amazon Cloud Player was “coming soon.”

Like its competitor iTunes Match, Amazon Cloud Player charges $25 per year to store up to 250,000 songs. It also includes a feature that automatically identifies music files and upgrades the quality using a 256 Kbps file from the Amazon catalog. “That’s a ton of digital music, although the competing Google Play Music allows you to store up to 20,000 tracks for free and is available on Google TV devices,” explains the post.

The release was announced the same day that Amazon added its Amazon Instant Video app for the iPhone and iPod touch.

According to a related post from CNET, the Instant Video streaming app “allows for access to over 140,000 movies and television shows that can be downloaded for purchase or rental.”

Amazon offers access to its streaming library across devices including the iPad, Kindle Fire HD, PlayStation 3, PCs and Macs. The app is only available to customers who pay for the company’s $79-a-year Prime membership.

Cloud computing (and cloud reliance reshaping device needs) will be the major trend in consumer electronics for 2013, according to a new report from Ericsson ConsumerLab. “The electronics firm’s ‘Ten Hot Consumer Trends 2013‘ report suggests that not only is cloud computing becoming increasingly important in our daily lives, but young people’s use of the Internet will drive new businesses and products in the coming year,” reports CNET. Continue reading Report Predicts the Cloud as Top Consumer Trend for 2013

Playcast is a cloud-based gaming service that runs through pay TV, IPTV, or over-the-top TV providers like Google TV and Roku.

“For the end user, the system operates like VOD or an app, while remote servers actually run the games and stream a video feed of the gameplay in real-time,” reports Engadget. “On the back end, one server shelf can serve up to 15 players an HD (read: 720p) feed simultaneously, and graphical artifacting is kept to a minimum because it streams over the operator’s managed network.”

Playcast differentiates itself from OnLive because Playcast can brand its front-end interface to fit specific customers’ desires and does not need additional hardware. Playcast also offers packages of games for subscription use.

The company plans to launch in Q3 of 2013 with 10-15 packages of 20 games each. The packages will likely cost $10-$15 a month. Playcast will alternate 10 percent new games in each month to keep customers engaged.

“It appears that Playcast will provide casual gamers an intriguing option for getting their gaming fix next year,” concludes the post. “But we’re reserving judgment until we see how well the games run on a managed network, what titles are offered, and just how much it’ll cost.”

Many hedge fund and telecom execs have bought up various bands of spectrum in hopes of converting it for wireless networks. The FCC has denied several requests, keeping its strident allotment for airwaves, but the commission recently gave the rare green light to Dish Network.

“Late Tuesday, the FCC unanimously approved [Dish Chairman Charlie] Ergen’s plan,” the Wall Street Journal reports. “Under the order, Dish would be required to not use a portion of its spectrum to avoid interference with neighboring airwaves, according to FCC officials. The company would also be required to cover at least 70 percent of the new network in each of its geographic license areas within seven years.”

Ergen started assembling the spectrum five years ago through government auctions and investments in flailing satellite companies, spending roughly $3 billion. “At a stroke, the FCC has now raised its value to as much as $12 billion, according to some analysts’ estimates. Mr. Ergen has to do the hard work of putting that spectrum to use or getting FCC approval to sell it,” the article states.

“Wireless service could give Dish an important new line of business in a mature U.S. pay TV market, where its cable TV rivals are able to sell popular ‘bundles’ of telephone, television, and high-speed Internet service.” Rather than building its own network, Dish could partner with a carrier like Sprint Nextel, or potentially even an outside company like Google, to offer wireless service with the spectrum.

“Consumers, meanwhile, could benefit whatever Dish decides, as the FCC’s decision frees up more bandwidth for data-hungry devices like smartphones and tablets,” explains WSJ. “The drawn-out process of converting that spectrum also highlighted how slowly regulators have moved to put much-needed airwaves to more valuable uses.”

A new spectrum sharing rule proposed by the Federal Communications Commission would be the biggest wireless regulatory change in decades and could prove a pivotal move in addressing ever-increasing data traffic. “Under the proposed rule, wireless carriers, corporate offices, or researchers could reserve pieces of that spectrum in different regions and at different times — a system managed by a central database,” Technology Review explains.

“The approach guarantees that the spectrum will be available and not subject to interference in certain areas by a crush of new users, as might happen if the new chunk of spectrum were made available with no regulation at all.”

The step “is a critical milestone,” says David Tennenhouse, Microsoft’s VP of technology policy. In addition to releasing more spectrum, the rule will enable “dynamic spectrum sharing that is particularly well suited for absorbing growing wireless data traffic,” he says.

“Cisco Systems estimates that mobile data traffic will grow by a factor of 18 by 2016, and Bell Labs predicts it will increase by a factor of 25,” notes the article. “Many more airwaves could eventually be shared with the help of cognitive radios, which sense available frequencies and shift between them.”

The rule applies to spectrum in the 3.550 to 3.650 gigahertz band, which is currently used by radar systems. At first, the “checked-out” spectrum might be free, but a pricing system may eventually be implemented to allow a wireless carrier to pay for priority access in times of extreme high demand.

“Whatever the details, the move spells the beginning of the end of a system in which spectrum is either exclusively owned by a private company, walled off for government and military use, or unlicensed and crowded,” suggests the article.

During the TV of Tomorrow conference in New York, industry executives discussed how tablets, particularly the iPad, could be the future of television. Tablets and iPads have turned into the second screen for television viewing, and served as the focus of many of the talks at the conference. The second screen trend is both promising and troubling for television execs, as it presents new opportunities while also taking eyes away from advertisements.

People spend 22 minutes on second screens during a traditional 30-minute show, and 38 minutes during a 60-minute show, according to TVPlus co-founder Randy Shiozaki.

Dijit CEO Jeremy Toeman points out that second screen viewing works best for reality shows and other light entertainment. The technology does not work as well for more engaging dramas. Some challenges with second screen viewing involve the different technologies on the market, and the assorted apps for the various tablets.

Some executives maintain that while second screen viewing is exciting, television content is still the most important aspect of the television experience. “What’s been left out of the multiscreen conversation is the first screen, and that will come full circle,” said Lawrence Brickman, VP of smart TV app developer Accedo.

“But if Apple can leverage the incredible amount of energy the TV industry has already invested in the iPad, it may not matter if anyone else can do it better — Apple’s platform will hit scale across multiple screens before the industry even knows it’s happening,” suggests The Verge.

In a video interview with Wired, actor Andy Serkis (who plays the computer-generated character of Gollum in the popular “Lord of the Rings” trilogy and the upcoming “The Hobbit”) speaks about his recurring role and about advances in motion-capture technology.

Since the 2001 release of “Lord of the Rings,” motion capture has changed significantly, “bridging some of the ‘disconnect’ [Serkis] felt while filming on separate live-action and motion-capture stages for the original trilogy,” according to Wired.

Serkis recently co-founded a London-based digital-effects house called The Imaginarium, which specializes in motion capture. In the 2-minute interview, he talks about how developments have changed his acting experience and what it was like to return to the role of Gollum.

“It’s still in its infancy in terms of where it’s going to go and the ability that it gives an actor to transform, while retaining a real emotional sort of truth” says Serkis of motion-capture technology. “No matter how big, or wacky, or abstract the design of a character, it still is always rooted in this emotional, truthful actor’s performance.”