As the $7.7 billion U.S. music industry has moved from CDs to streaming, the top venue has become — not Spotify or Pandora — but YouTube, which is responsible for 25 percent of all music streamed. But that’s a problem since accessing music on YouTube is free, and music labels are increasingly unhappy that the platform pays less for songs than other streaming sites, calling it a threat to the music industry. The music industry has begun taking its concerns to regulators, not just in the U.S., but around the world. Continue reading Music Industry, YouTube Battle Over Perceived ‘Value Gap’

According to Morgan Stanley, as of March 2017 the net value of Netflix content was valued at $11 billion, significantly higher than the content assets of many top media companies. “At the same time, however, the revenue Netflix generates on that base of content trails traditional TV and film conglomerates,” reports Variety. “Netflix pulls in about $1 of revenue per dollar of net content value, versus $2-$4 among old-school entertainment companies.” There is no guarantee that Netflix, which just earned 92 Emmy nominations, can monetize its content similarly to traditional television networks, especially since it does not sell advertising. Regardless, Morgan Stanley analysts wrote “Netflix is building a much larger profit pool than the market understands.” Continue reading Morgan Stanley Values Netflix Content Assets at $11 Billion

Amazon may be developing a standalone messaging app called Anytime that would allow people to connect without the need to include phone numbers, which is how other messaging apps such as Viber and WhatsApp typically connect. The company has reportedly been running a survey to gather feedback about a service “for smartphones, tablets, PCs and smart watches designed to let people chat with text and video, send each other fun photos with filters, play games and engage with other Amazon services,” reports TechCrunch. Earlier this year, AWS launched a communication service called Chime for enterprise customers. Continue reading Anytime: Amazon May Be Developing a New Messaging App

SenseTime Co., a Beijing-based startup founded in 2014 that sells its facial recognition systems to the Chinese police, just scored $410 million in new venture capital funding that values the company at more than $1.5 billion. The valuation, which makes the company a unicorn, underscores how such surveillance technologies are increasing in importance. Facial recognition breaks down a face into measurements that create a template, and SenseTime uses artificial intelligence to match faces against those in an image database. Continue reading SenseTime Facial Recognition Firm Is Valued at $1.5 Billion

YouTube is where 1.5 billion people go every month to watch videos for more than an hour a day, and influencers such as brothers Jake Paul and Logan Paul have millions of followers and draw in lots of digital ads. Facebook makes it easier for videos to go viral, but hasn’t had much success in getting viewers to watch videos for more than a few minutes. In an effort to do so, Facebook has turned to live sports, making its own programs and a handful of stars who crave Facebook’s enormous reach more than YouTube’s monetization. Continue reading Facebook Vies With YouTube for Digital Influencer Content

Microsoft has a plan for providing inexpensive broadband access to underserved areas of the U.S., and its president/chief legal officer Brad Smith just declared the company’s support for that plan. The company has long advocated the use of so-called TV white-space technology — unused TV spectrum — to bring broadband especially to rural areas. As part of the plan, Microsoft would also urge the Trump administration and Congress to make sure that unlicensed white-space spectrum is available in every market in the U.S. Continue reading Microsoft to Provide White-Space Broadband in Rural Areas

Sony Music Entertainment has agreed to a new licensing deal with Spotify, which should be finalized in the coming weeks. “The agreement helps to clear the way for Spotify’s long-anticipated public offering, which is expected later this year or early next year,” reports Variety. An inside source suggests the deal is similar to the current Spotify agreements with Universal Music Group and digital rights agency Merlin. A major component of the deal is a windowing option, “whereby artists can withhold their releases from its free, ad-supported service for up to two weeks.” Continue reading Sony Music Reaches New Licensing Agreement with Spotify

The World Wide Web Consortium (W3C), which oversees standards for the web, approved a new system for handling DRM-protected video. Encrypted Media Extensions (EME) work by letting DRM systems connect directly to the user’s browser. EME lets streaming video services protect their content without forcing users to install plugins that can be insecure. But not everyone is happy. Some researchers and advocates of the open Internet believe EME will give browser developers and content providers too much power. Continue reading W3C Approves the EME Standard for DRM-Protected Video

Internet companies, large and small, will begin to rally their users to join a “day of action” online protest against the demise of net neutrality. Many of these same Internet companies fought hard for these same net neutrality rules, instituted in 2015. FCC chairman Ajit Pai has said he supports an open Internet but that the Obama-era rules are too “heavy handed.” Net neutrality prevents large service providers from slowing down the Internet offerings, including media such as movies and music, of their rivals. Continue reading Internet Firms Rally Users to Oppose the End of Net Neutrality

According to new research by the Intellectual Property Office and PRS for Music, “stream-ripping” technology is the fastest-growing approach to music piracy in the United Kingdom. The research indicates a 141.3 percent increase in this type of illegal activity between 2014 and 2016. Stream-ripping apps and websites allow consumers to convert streaming content such as Spotify songs and YouTube videos into digital files that can be stored on mobile devices and computers. In September of 2016, such sites were accessed 498,681 times in the U.K., while BitTorrent was only used 23,567 times. Continue reading Stream-Ripping: Fastest Growing Form of Music Piracy in UK

According to new estimates from Morningstar, the number of Amazon Prime members may soon exceed the number of cable and satellite TV subscribers in the United States. Morningstar points to 79 million Prime members, up from 66 million at the end of 2016 (based on analysis of Amazon’s cash-flow statement). S&P Global projects 90 million U.S. households will pay for cable or satellite television this year. Recode reports, “According to these estimates, more U.S. households may have an Amazon Prime subscription than a pay TV subscription as soon as next year.” Continue reading Amazon Prime Members May Soon Top Pay TV Subscribers

Amazon-owned Twitch updated both its iOS and Android apps with a new navigation bar, interface options, recommendation algorithm and mobile streaming. The features will make it easier to use the camera for selfie-style videos and likely result in more content on the platform. Although Twitch has been focused on live gaming-related video — with a total market worth $4.6 billion — it has begun to include non-gaming content as part of Twitch IRL. Twitch also opened subscriptions to affiliates that don’t have as many viewers as a Twitch Partner. Continue reading Twitch Debuts Mobile App Updates Including Cam Streaming

Cable TV rivals QVC and the Home Shopping Network announced they plan to merge through an all-stock transaction valued around $2.1 billion. QVC chief exec Mike George will run the combined company and 17 cable channels. As impulse buying and video watching increasingly go mobile, the TV-based retailers have been facing increased competition from Amazon. “QVC’s sales in the U.S. have declined in each of the last three quarters,” reports The Wall Street Journal. “Revenue at HSN has declined for six straight quarters, and the company has been searching for a new CEO.” Continue reading QVC to Purchase HSN in All-Stock Deal Valued at $2.1 Billion

In April, we reported that Netflix held the top spot among streaming services in U.S. household penetration. Last month, Leichtman Research released figures suggesting that Netflix had doubled its subscription base over five years and, for the first time, surpassed cable TV in number of total subscribers. Now, comScore data indicates that cord cutters are spending more time watching content via Netflix per month than they are on Amazon Video, Hulu and YouTube combined. Interestingly, the data also shows that Hulu users watch more content on a daily basis. Continue reading Netflix Fans Watch More Monthly, Hulu Leads in Daily Viewing

Hulu has joined the Alliance for Open Media (AOMedia) to help promote the AV1 AOMedia Video codec. The alliance’s video compression standard “strives to deliver improved compression efficiency over the current cutting-edge video compression standards HEVC/H.265 and VP9, in addition to providing the industry with an open source, royalty-free, interoperable video format,” wrote Hulu CTO Tian Lim. “Hulu joins other streaming media industry leaders in pursuit of a common goal — to accelerate development and facilitate friction-free adoption of new media technologies that benefit the streaming media industry and our viewers.” Continue reading Hulu Is Latest SVOD Service to Back AOMedia Video Codec