A new report from media forecasting firm Magnaglobal shows that by 2016 cable subscriptions will dramatically decline as online becomes the medium of choice.
Magnaglobal predicts that 9 million households will not subscribe to traditional pay TV services (triple today’s amount), of which 4 million will be cord cutters who cancel their service to opt for content via the Internet.
Additionally, The New York Times points out that the number of young consumers who have never signed up for cable or satellite service, but rely on services such as Hulu and Netflix for their media, will continue to grow. “The number of people who never signed up for cable is expected to double — to 5 million, from 2.5 million today — by 2016, according to the report.”
The growth of DVR ownership is also expected to decline, as consumers continue to adopt devices that enable streaming of content via the Web.
Apple’s new CEO Tim Cook hosted his first iPhone event since taking over the company reigns in August. The Hollywood Reporter provides some interesting insight into Cook’s personality and work ethic.
Cook has been with Apple since 1998. Until taking over for Steve Jobs as CEO, he expertly handled company logistics and operations, serving as Mr. Inside to Jobs’ Mr. Outside, suggest the article.
His 18-hour workdays are legendary, even amongst Apple employees. “Cook probably gets his stamina from being a fitness buff and is said to be a fan of cyclist Lance Armstrong,” comments THR.
Cook is said to be more personable than Jobs was in the position of CEO, taking more time to respond cordially and even with a tone of friendliness to customer emails.
Under Jobs, Apple didn’t have a corporate policy matching employees’ charitable donations, but Cook changed that and now Apple will match employee donations dollar-for-dollar up to $10,000.
UltraViolet (UV), the digital locker system that allows viewing of content across multiple devices, will roll out on October 11th in the U.S. with an expanded global rollout expected in the months to follow.
“All of the major studios are supporting the new cloud-based product, although Disney is not one of the more than 70 official members of the Digital Entertainment Content Ecosystem, which oversees UV,” reports Variety.
Warner Bros. exec Justin Herz said this week that his studio will provide half of its movie and TV catalog available on UltraViolet by the end of 2012. The first UV release, Warners’ “Horrible Bosses,” will reportedly be released Tuesday, to be followed by the availability of “Green Lantern.”
Fox suggested that “a significant” amount of its content would soon be UV-enabled, while Sony plans to launch with “The Smurfs” and “Friends With Benefits.”
“Studios that have signed up for UV hope the new technology will re-ignite the home entertainment market and boost revenues following the collapse of DVD sales and the failure of Blu-ray to generate excitement among consumers,” adds Variety. “UV-enabled discs allow buyers to watch the same content on 12 different devices with an Internet connection, including connected TVs, laptops, tablets or mobiles, once they open a streaming account.”
Subscription-based music service Rhapsody has acquired Napster from Best Buy in a deal expected to be finalized the end of November.
“There’s substantial value in bringing Napster’s subscribers and robust IP portfolio to Rhapsody as we execute on our strategy to expand our business via direct acquisition of members and distribution deals,” said Rhapsody president Jon Irwin.
Rhapsody and Napster have the two largest music service subscriber bases and the acquisition could impact other music services such as Rdio, Spotify and MOG.
Irwin emphasized the importance of a strong subscription base: “This is a ‘go big or go home’ business, so our focus is on sustainably growing the company.”
“Apparently it takes more than Facebook sharing to win the subscription war,” comments Gizmodo. “Too bad I haven’t seen a Rhapsody or Napster song actually shared on Facebook.”
Producer Mark Burnett and the team at Youtoo is hoping to kickstart the first age of social TV by “putting 500 people on TV each day — providing more Americans than ever before with a real shot at their 15 minutes of fame,” according to the press release.
Burnett’s production studio VIMBY (Video in My BackYard) and online distributor KoldCast TV have joined Youtoo CEO and founder Chris Wyatt in the venture.
“VIMBY will be producing content for the network asking users to submit video ‘FameSpots’ or ‘Social Shouts’ via the Web, iPhone, iPad or Android to insert themselves into the content,” reports Lost Remote.
Youtoo’s patent-pending software and cross-platform technology stack enable users to record an HD broadcast quality video, or a “FameSpot,” which is filtered by the software and if chosen, will be put into the live broadcast feed.
“Youtoo is the world’s first social TV network,” says Wyatt. “Since millions of people want to be on TV, we created a website and app for that. Youtoo is a social network, television network, and the technology to make them all work together. Just like a social network, you can interact with your friends or followers. However, you can also interact with a national audience on TV. Think of it as Facebook for TV in concept.”
Youtoo launched September 27th in beta and is currently live. According to Wyatt, the network has distribution to 15 million households through Comcast, Time Warner, Cox, Charter, Verizon, Service Electric, Bright House, National Cable Television Cooperative and Insight Cable.
Toshiba is showcasing its 55-inch Regza 55X3 TV at CEATEC this week in Japan. The unit boasts a resolution of 3,840×2,160 — and glasses-free 3D at 1,280×720 — for what TechCrunch is calling “the first TV of its kind.”
“The TV features 5,000:1 contrast ratio, LED backlight, a new processor called ‘REGZA Engine CEVO Duo,’ a face-tracking function to enable high-quality 3D pictures for viewers, REGZA LINK, five digital tuners, 10W×2ch+10W speakers, four HDMI ports, and two USB ports,” reports TechCrunch.
TechRadar reports that the Toshiba TV joins Sony’s VPL-VW1000ES projector and Sharp’s 60-inch LCD in the 4K offerings featured at CEATEC this week. The report also suggests Toshiba hopes to ship 1,000 units a month of the Regza 55X3. “This is high hopes for a technology that’s burgeoning in the cinema market but is brand new in the home,” indicates TechRadar. “And with the economic climate as it is will be something of a battle, even with both Sony and Toshiba on board.”
The Regza 55X3 will be available by December in Japan for $11,730 (U.S.).
A comprehensive comparison between Netflix and other streaming services shows that, even after the recent criticism regarding the split of its businesses, “Netflix is still the champ, but only if you count both its the streaming and DVD mailing services.”
In his evaluation of current offerings, David Strom of ReadWriteWeb examined services such as Amazon Prime, Hulu Plus, Vudu.com and Justin.tv.
“Overall, once you leave Netflix you will find fewer choices and searching won’t be as easy to find something to watch,” he writes. “Netflix has a great search engine that won’t just look for movie titles but also check for actors and other principals involved in the movie itself, something the other services don’t do as well at.”
Another upside to Netflix is the ability to use devices such as the iPad or TiVo box to stream movies. While of the services enable streaming to your Windows or Mac Web browser, they’re not all compatible with other devices.
“So while you might be upset about paying for two bills for your video rentals from Netflix, unless you are willing to spend more time searching for content, you are probably better off sticking with the service for the time being, at least until the others catch up with their content licenses,” Strom concludes. “Or if you already have a cable TV subscription, investigate whether it offers something similar to Comcast’s Xfinity and see what their coverage is there. Ironically, that might be your best alternative to Netflix after all.”
Social startup Tout offers a Twitter-like microblogging service, but enables users to publish 15-second video clips instead of 140-character text fragments.
“In other words, now anyone can be famous for 15 seconds,” suggests San Jose Mercury News.
When asked how it’s different from the Facebook feature that lets users post video chats, CEO Michael Downing explained the “abbreviated and near-instant nature of ‘touts’ makes them like mini-conversations.”
Endorsements from high-profile users such as Shaquille O’Neal, Mitt Romney and ESPN are helping the service build momentum.
O’Neal is one of many celebrities who have taken to communicating via Twitter (he currently has more than 4 million followers). “But what I’ve been noticing about Twitter lately is that you don’t know who the person you’re talking to really is,” he said. “When you can see my picture, you know it’s me.” O’Neal is so impressed with Tout that he took an ownership stake.
Since launching in mid-April, the San Francisco-based startup has attracted 4 million unique visitors. “It took Twitter two years to hit 1 million visitors,” explains Downing. “We hit it in under 12 weeks.”
Rob Wiesenthal, chief financial officer of Sony America and chief strategy officer of Sony Entertainment, says TVs will get access to video content through tablets which would enable, for example, Sony’s Video Unlimited subscribers to go to a friend’s house and “throw” a film to the TV set.
“If you think back five years, it was all about the boxes; Tivo, Slingbox, Roku,” he said. “I think consumers really had box exhaustion.” Apple’s AirPlay, for example, allows iPads and iPhones to wirelessly connect to TVs.
Sony is using the Digital Living Network Alliance standard to interoperate with different manufacturer’ devices without the need for a box.
“Other benefits include the lure of offering more targeted advertising through an IP-enabled tablet than has proved possible through set-top boxes, and the advantages of finding content on a tablet rather than by aiming a remote control at a TV 10 feet away,” reports Financial Times.
In order for this approach to work, however, home Wi-Fi networks will require the capacity to transfer large video files without interruptions and cable providers will need to be willing to make content available this way.
Spotify has been drawing a great deal of media attention this week, more so than the growing number of other streaming music services.
Since the company announced its partnership with Facebook at the recent F8 event, Spotify has gained more than one million new users, despite the public outcry from those who question limiting the service’s signup to Facebook users only.
In response to concerns regarding Facebook’s media-sharing philosophy, Spotify released a new update that enables users to access the Facebook app without sharing their listening habits, reports Digital Trends. This may be good news for subscribers not happy with the recent announcement regarding Facebook integration — and could potentially serve as a model for how others offer access to services via social networking.
In related news from The Hollywood Reporter, Spotify recently released a radio feature in the U.S. that has long been available to European users. Radio will be accessible on the desktop client, but not on the Spotify mobile app. The add-on is reportedly in no way a Pandora killer, due mainly to its lack of mobility and attention to detail.
Additionally, Digital Trends reports that Spotify may be having a significant impact on music piracy. Illegal downloads in Sweden have reportedly dropped 25 percent since Spotify launched there in 2009. “Here in the U.S., Spotify isn’t the only option — and it may not even be the best, depending on user preference. Pandora, MOG, Rdio, Grooveshark — the list goes on,” indicates the article. “We don’t yet have numbers to show how these services are affecting music piracy in the U.S. But we’d put our money on them having a similar effect as Spotify is having in Sweden.”
Amazon is expected to announce its long-awaited Android tablet this morning at a press event in New York City.
The 7-inch backlit Kindle Fire is expected to launch by the second week of November, just in time for the holidays. “The iPad has many challengers, but analysts say Amazon’s could be different — it has a chance to be more than a wannabe,” reports The New York Times.
Amazon built its own custom version of Android, has included a streaming video service, and will feature the Amazon MP3 service and the Kindle bookstore.
In related news from The Hollywood Reporter, major magazine publishers — including Hearst, Conde Nast and Meredith — have signed deals to sell digital versions of their publications. One big holdout is Time Inc., but it’s being reported that a deal could be reached “hopefully by the end of the year.”
One publisher with an Amazon deal said: “You’ve got beauty and design with Apple, which we love. But with Amazon you have marketing, and ease of use. We’re very optimistic.”
Amazon’s terms seem to be similar to those offered by Apple. Publishers get 70 percent of Amazon sales while the retailer shares customer information with the publisher. But, the report notes that those numbers could fluctuate depending on the title and customer offer.
We’ll have more on this story following the press event…
Hulu has proven successful with providing TV content online (the service is second only to YouTube in terms of viewer engagement), but the video platform has yet to effectively break into practical social offerings. That may change with its new Facebook app, which strives to make the Hulu experience more social.
The new app will enable viewing of content directly within Facebook, will allow you to see what your friends are watching (with approval), and will provide options for having conversations about shows and leaving comments.
“The coolest part? As you’re watching Hulu content, be it a full show, clip, or film, you can leave comments on particular moments within the video. Oh yes. SoundCloud-style,” reports TechCrunch. “And, naturally, once you leave a comment on a particular moment, you can then blast it out to friends to let them know how clever you are — on both Hulu and Facebook.”
Hulu Plus users can access their entire library in Facebook. And you can elect not to share what you watch with friends, via the share settings or privacy settings on Hulu or Facebook.
TechCrunch is enthusiastic about the app: “We welcome you, Hulubook. Facebulu.”
We’ve received a flood of interesting articles and posts about newly announced changes to Facebook that emerged from yesterday’s F8 developer’s conference. You can check out the submissions stream on ETCentric to access all the write-ups and opinions, but in the meanwhile, the following provides a a quick snapshot…
Timeline: Your entire Facebook life. It condenses information the further back in time you go, allows you to navigate specific years, and provides the option to feature, add or remove items. It is important to note however, this is not merely a new feature. It will completely replace current profiles, according to TheNextWeb.
Ticker: This is a status feed that updates your activities, but is separate from your status updates that appear in the Newsfeed. This feature is now especially important to keep an overwhelming amount of information from coming through the new Open Graph Apps. “The Ticker is Facebook’s assault on Twitter,” reports Gizmodo. “Facebook is hoping that the tiny aspects of your life that you currently share on Twitter, you’ll be more likely to share on Facebook. One site for all your social networking.”
Open Graph Apps: Includes a variety of apps such as Spotify and Hulu that automatically update your Ticker and Timeline based on the settings you create for each app. Friends see what video you’re watching, what music you’re listening to, what games you’re playing, and more. This feature is available now, while Timeline will take a few more weeks.
It is worth mentioning that since music, news, video and more will be shared with friends and family, it may also be shared with marketers. Open Graph will enable an ecosystem for developers. Your Facebook profile will become “the story of your life” which is written for you in real time as you curate your personal information and your use of apps. Similarly, you will learn more about your friends. And all this personal information will be used to serve you with micro-targeted ads. People will be given the option of privacy even though most will probably not alter the default settings.
Social Sharing: By essentially creating a discovery engine for all your apps, Facebook hopes to dramatically change how we interact and share media electronically (through what Mark Zuckerberg calls “serendipitous discovery”). The Gizmodo post features a video on social sharing that provides a great view of how the Open Graph app sharing works.
Prior to the F8 event, eMarketer published a report forecasting that Facebook would double its global revenue to $4.27 billion in 2011.
As reported on ETCentric yesterday, Google Wallet rolled out this week. The technology allows you to pay for products and services by merely swiping your phone over a “tap payment” terminal (only MasterCard PayPass-enabled terminals right now). While only the Nexus S 4G phone is currently supported, there will be more phones coming soon that include the NFC (near field communication) chip.
Reporting for All Things D, Katie Boehret took the mobile app for a test drive. “I’ve been trying Google Wallet in Washington, DC, and Palo Alto, California, and I find it delightfully easy to use,” she writes. “Though still in its infancy, it isn’t hard to imagine digital payments catching on and becoming commonplace.”
Boehret points out that only the Citi MasterCard can be added to Google Wallet for now, but a Google Prepaid Card can accept other credit cards, and Google says other cards are coming (the company is working with Visa, Discover and American Express).
PayPal and Square are working on their own digital-payment systems, both of which do not require the NFC chip, so they will work on many phones.
Beyond payment, Google Wallet will let you register your store loyalty and gift cards (expect to see this from the likes of CVS, Macy’s and American Outfitters); however, you cannot register forms of ID, suggesting that despite its ease-of-use, the app is not a replacement for your wallet.
“Google Wallet can’t hold your driver’s license or other official forms of identification, so even if it takes off and works everywhere, you’ll still have to carry your license with you,” concludes Boehret.
Adobe announced this week Adobe Flash Player 11 and Adobe AIR 3 software to enable “console quality” 2D and 3D games and scientific visualizations for multiple platforms including Android, Apple iOS (via AIR), BlackBerry Tablet OS, Mac OS, Windows, connected TVs and others.
Adobe touts 1,000 times faster rendering performance over Flash 10 and AIR 2 enabling 60 frames per second rendering and console-quality games on Mac OS, Windows and connected TVs. A production release for mobile is coming.
Content protection is available using Adobe Flash Access 3 on supported platforms — “including support for mobile platforms,” explains the press release — with support for rental and subscription options “to more than 80 percent of the U.S. pay TV subscribers.”
HD full frame video quality can be displayed on iOS devices using H.264 hardware decoding to deliver 7.1 channel surround sound.