Game Consoles May be Aging, but PlayStation, Wii, Xbox Still Selling Strong

  • Despite analyst speculation that video game consoles may be in jeopardy due to the increased capabilities and growing popularity of smartphones and tablets, “Microsoft’s Xbox and Nintendo’s Wii sold in record numbers last week as Americans kicked off their holiday shopping,” reports AllThingsD.
  • Some 960,000 Xbox 360s were sold last week and 500,000 Wiis were sold the day after Thanksgiving. Game consoles are still experiencing strong sales five and six years after they were introduced.
  • “It’s difficult to imagine any other consumer hardware that could attract that kind of demand after such a long period of time,” suggests the article.
  • Blockbuster game titles like Activision’s “Call of Duty” game, which grossed $775 million in its first five days, continue to juice the market.
  • Motion-controls such as Wii and Microsoft’s Kinect open up the market beyond gamers to a family market.
  • And, as previously reported on ETCentric, game consoles are becoming entertainment centers for streaming video, music and other media content through partnerships with providers such as Netflix, Hulu, ESPN, HBO GO and others.

Time Warner Cable Adds Local New York Stations to its iPad Streaming App

  • Time Warner Cable is expected to add local broadcasting to its iPad streaming app in the New York City market. The app allows its customers to view broadcast programs on the tablet anywhere in their homes.
  • It will expand the local offering soon and extend it elsewhere by early next year, according to Rob Marcus, TWC’s chief operating officer.
  • The service will also include access to local newscasts and syndicated programming. “We’re moving towards delivering local programming, which is a little more difficult to do technologically,” Marcus explained to investors.
  • “Marcus reiterated that TWC believes it has rights to offer Viacom-owned networks on its app. The two companies are suing each other over the matter,” reports Media Daily News. “Cablevision has reached an agreement with Viacom, and offers its channels among the 300-plus it provides.”
  • “Marcus went on to say there is some impetus to move ahead with TV Everywhere-type opportunity extending outside the home, where it has a deal with ESPN and some others, but ‘the process has taken a lot longer than we would have anticipated at the outset,’” suggests the article.

New Cord-Cutting Tool: Boxee to Offer USB Live TV Stick in January

  • Boxee is augmenting its broadband box for cord-cutters with a USB dongle that provides users access to broadcast TV.
  • According to paidContent: “Boxee, which has been working mightily to get people to cut their cable cords with its own broadband box for five years, is preparing a new add-on product in January that will let users pull out the cable cord and plug a USB device into their cable box, giving them access to broadcast TV channels like ABC, CBS, FOX, and NBC for free.”
  • “If you live and die by ESPN, then yes, you have to stay on cable. But we believe there are plenty of people who just want access to regular broadcast channels,” says Avner Ronen, CEO and co-founder of Boxee.
  • However, Ronen believes there are consumers interested in basic broadcast content that would benefit from this approach. “The problem with canceling your cable subscription and relying just on the Internet has been the lack of live sports, a presidential address, local news, special events and live TV shows,” he told paidContent. “But these things are all available on broadcast TV channels…for free, over the air in HD.”
  • The Live TV stick will be available for $49, as an add-on to the $180 Boxee Box.

A La Carte: Will the Future Apple TV Disrupt the Current Live TV Paradigm?

  • Forbes speculates that the rumored future Apple TV would create a demand for single channels, which could potentially break up the cable pricing monopoly.
  • Rather than paying for a package of a hundred channels, users would pay a la carte for content just as single-channel apps have become popular in the mobile sphere.
  • “Presumably, Apple wants to disrupt this market the same way the iPod and iTunes made it easier for consumers to buy music, and the way the iPhone is slowly moving the cellular industry to data plans over voice plans (see: iMessage, Facetime),” suggests the article.
  • Providers such as Time Warner Cable, Optimum and DirecTV already have apps for live streaming of channels. And ESPN, CNN and Major League Baseball have their own apps.
  • “[Cable providers] might consent to separate channel apps as long as each still requires an overall subscription…that would certainly put a crimp in [Apple’s] potential plans to revolutionize television,” explains Forbes. “And if Apple provides incentives for channels to go it alone, the fight could be massive.”

Tout is Like Twitter for Video: Is This the Next Chapter in Social Media?

  • 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.”

Will Cable Operators Switch to A La Carte or Will Programmers Resist?

  • The weak economy is leading cable operators to reverse their opposition to so-called “a la carte” programming. Comcast and Time Warner have lost 1.2 million customers in the last 12 months.
  • Programming costs have risen 6-10 percent annually over the last decade. And the fear is that it will continue as they see ESPN, for example, sign a $15 billion, 8-year deal with the NFL. Cable and satellite operators are also now paying to retransmit local broadcast channels.
  • “There is a growing recognition that the current model is broken,” says Craig Moffett, cable analyst at Bernstein Research. He expects smaller, less costly programming packages to emerge as Time Warner is doing with its TV Essentials pack.
  • “The specter of unbundled programming is likely to encounter fierce resistance from network owners such as Viacom Inc or Discovery Communications Inc, which are keen to maintain the economics of selling their most popular channels as a package with their smaller, nascent networks,” reports Reuters.

ESPN: Monday Night Football Extension includes 3D Broadcast Rights

  • ESPN has announced an eight-year extension of “Monday Night Football” that includes 3D broadcast rights, expanded NFL studio programming, highlight rights for TV and ESPN.com, continued Spanish language rights, the Pro Bowl, the NFL Draft,  and rights to simulcast network coverage on tablet devices through the WatchESPN app.
  • The deal, which runs from 2014 to 2021, “should help quell ideas that ESPN 3D might be axed after its removal from U-verse,” suggests Engadget.
  • According to the press release: “The extensive package of NFL rights will fuel the continued growth of ESPN year-round, boosting its core television business while at the same time supporting the company’s ‘best available screen’ strategy with NFL programs on TV, online and on mobile devices via authentication and digital rights.”
  • The agreement will also lead to “Monday Night Football” celebrating its 50th anniversary season on ESPN in 2020.

ESPN’s Billion-Plus Online Video Streams Now Powered by Ooyala

  • ESPN has selected Mountain View-based Ooyala to power the sports broadcaster’s streaming video content. The platform will replace a proprietary model administered by ESPN.
  • Ooyala’s platform will reportedly increase the quality of playback, reduce load times and streamline back-end management.
  • “It’s a serious feather in the cap and vote of confidence for the four-year-old video startup, as ESPN is one of the biggest producers of online video content, with 400 unique visitors hitting play on ESPN videos every second (and serving over 1 billion streams per month),” reports TechCrunch.
  • The media technology site sees the move as positive: “All in all, it’s great to see ESPN finally offering a quality player with fast load times and a more linear on demand experience in which video queues and layouts feel more akin to a television viewing experience — and can compete in ease of video use with YouTube.”

ESPN Takes a New Approach to 3D Production

  • Variety reports that ESPN remains enthusiastic about 3D technology, despite its slow adoption (and AT&T’s recent decision to drop ESPN 3D from its U-Verse TV service).
  • ESPN is pushing its 3D effort by focusing on combining 2D and 3D production (nicknamed “5D”), which the network says brings costs down substantially. 2D/3D production includes slower cutting and more use of robotic cameras. As the production crews gain more experience in shooting sports beyond HD, the equipment, camera placement and general approach continues to improve.
  • “Some innovations created for 3D have even made it over to the 2D side,” reports Variety. “For example, 3D cameras need to be closer to the action than 2D cameras, so the high 50-yard-line shots that are a staple of football coverage are problematic. To get closer, ESPN put a 3D camera on a 22-foot mast on a small vehicle that goes up and down the sideline.”
  • ESPN stands by the technology, explaining that Twitter feedback has been overwhelmingly positive. And some play-by-play announcers have even indicated they don’t want to go back to watching 2D.

Disney in Discussions to Provide TV Everywhere-Type Authentication

  • Similar to the approach Fox announced last month, Disney is negotiating TV Anywhere deals for ABC-TV shows with distributors. Access would require authentication with a cable ID.
  • Fox provides next day access to viewers who log in with cable IDs, and makes others wait for eight days to view content on Fox.com or Hulu.
  • Disney already has deals with Time Warner Cable and Verizon FiOS to access ESPN content using a mobile app.
  • “Our overall approach…has been to make deals that increase revenue while at the same time protect and respect the channel distribution value that we see today,” Disney CEO Bob Iger said. The company is looking to build authentication into future deals, which Iger explains would “allow access to our programming faster or in a more aggressive window if the customer is a multichannel subscriber.”

Review: Gizmodo Excited about ESPN 2.0 for XBox 360

  • Gizmodo calls the new ESPN 2.0 service, available on Microsoft’s Xbox 360 beginning August 25th, “super polished and super useful.”
  • The new interface includes the ability to watch two content streams in 720p simultaneously, a series of scrolling live thumbnails to select other games and access scores and stats, and the ability to control the system using voice commands over the Kinect.
  • Viewers can pause one game to focus on another, for example, or watch replays on one side of the screen while the other game keeps playing, or even access the same game twice (using one screen for replays and keeping the other screen for live coverage). Additionally, a live scoreboard runs vertically down the right side of the screen.

Increased 3D Content may Push Consumer Adoption

In the wake of disappointing 3D TV sales for 2010 (due in large part to a lack of 3D content), this year may see new traction as television vendors switch their strategy to marketing 3D as one feature of new high-def sets, rather than the single selling point. More 3D content is on the horizon via cable and satellite TV channels, Blu-ray Discs and video games. Eventual adoption may also be impacted as consumers shoot their own video with 3D-enabled camcorders.

Disney’s ESPN 3D sports channel began broadcasting in mid-February — while Sony, Discovery and Imax launched their 3net channel the same month. Comcast and DirecTV already have 3D channels, and more than 100 3D channels worldwide are expected by 2015.

“Clearly, lack of content has been holding the market back,” explained Chris Chinnock, president of research firm Insight Media. “But one or two years into the HDTV transition there wasn’t much programming either … It took about seven years to reach 11 percent (household) penetration with HDTV.”

DisplaySearch predicts 6.6 million 3D TVs will ship in North America in 2011 (16 percent of the more than 40 million sets expected to be sold). The research and consulting firm is targeting 15.2 million 3D TVs to ship in 2012 (up 130 percent).

Are Consumers Ready to Cut the Cord?

As alternatives to traditional cable TV services continue to be introduced, the discourse grows regarding whether or not consumers are ready to “cut the cord.” Recent data from ESPN and research firm SNL Kagan suggests that any cable subscriber losses are being offset by gains elsewhere. However, as a percentage, fewer households are subscribing to cable than in the previous year. And financial services firm Stifel Nicolaus recently reported that pay TV might not be making a comeback over the longer term. The research report indicates year-over-year subscriber growth was at a mere 0.3 percent during 2010 — “the lowest year-over-year growth on record.”

According to Stifel Nicolaus analyst Christopher King: “Cable operators have been quick to point to housing and the anniversary of the nationwide digital transition in 2009 as reasons for recent subscriber declines; however, our analysis suggests that growth in the pay TV market has underperformed household formation in recent quarters and the impact of the 2009 digital transition should no longer be an issue.”

The pay TV market is over-saturated (at more than 84 percent of households), and while many continue to blame the state of the economy and the saturation on the declining numbers, it is interesting to note that Netflix added 6.4 million subscribers during 2010. As the cost of pay TV subscriptions continue to rise, consumers are beginning to “further re-evaluate the value they place on traditional pay TV services which bodes well for the likes of Netflix, Amazon and Apple TV among others,” King wrote in the report.

Editor’s Note: For those interested, the GigaOM post “Cord Cutting Threat Ain’t Over Yet” features some very interesting charts including Pay TV Subscriber Growth 3Q09-4Q10, Pay TV Penetration 4Q06-4Q10, and Netflix Subscriber Growth 2010 (as compared to Pay TV).

Can Twitter Save Live TV?

Earlier this year, Mass Relevance commented on the possibility of “Social TV” developing from the interaction of Twitter and television. The post indicates that successful integration could, in fact, rescue live TV.

Addressing the NewTeeVee Live conference on this topic, Twitter Media team’s Robin Sloan discussed how Twitter has recently been used to enhance the live viewing experience, including: running commentary from reps of a given show, viewers tweeting about a program, and live integrated content where viewers tweet about the show and selected content is actually incorporated into the program.  The posts suggests that this last approach is, “tremendously undervalued, and represents no less than a complete revolution for the television industry.”

Mass Relevance reports that tweeting to a show could create some dynamic possibilities for increasing viewer engagement. Examples include swapping out viewer mail segments on talk shows with live tweets, soliciting questions via live tweets on political commentary programs, and incorporating Twitter into the rapid-fire approach of sports analysis shows such as Pardon the Interruption on ESPN.

The report summarizes the win/win potential: “With the audience actively participating — to drive the direction of the show, to interact directly with TV celebrities from the comfort of their living rooms, and ultimately to see their name in lights — media companies will be rewarded with a truly engaged audience, something that is not possible in a DVR-recorded, time-shifted world. Since audience members only get this shot at notoriety by interacting with the show, they are effectively forced to watch it live. This social TV experience is good for the media companies (increased ad sales), good for the advertisers (increased exposure), and — if they’re smart enough or witty enough or artful enough in their Tweets — good for the watching participant (a shot at glory).”

Apple TV Offers Live MLB and NBA Games

Baseball and basketball fans can now turn to the second-generation Apple TV for live and on-demand archived games streaming in HD.  The subscription service will cost $100/year for MLB.tv (spring training and regular season games and access to archived games).  A $120 premium version provides access to both home and away games.  Basketball games are accessible via the NBA League Pass Broadband service. The NBA service offers two options: a $65 version lets users follow up to seven teams throughout the regular season, while a $99 option provides games from all 30 teams.

Both services have blackouts based on the subscription’s registration address.

Access to the new services is enabled by the iOS for Apple TV 4.2 update, and will work similarly to Netflix. Users sign in via an account and password, and then access whatever content the subscription permits. Roku has offered similar MLB.tv access for some time and recently added NHL and UFC options. This could be what sports fans need to ditch traditional cable services.

In a related Wall Street Journal “All Things Digital” article (3/14/11), ESPN reports that only a tiny fraction of sports fans have cut the cable cord, a number that may be moot considering the equal number of fans who added cable and broadband access during the same period.