Palo Alto-based Flipboard plans to add film and TV to its social media magazine platform. Flipboard is currently available only on the iPad, but an iPhone version is expected to launch in a few weeks.
Reuters reports that the company “hopes to cut deals with studios to carry movies and episodes of TV shows, getting into territory staked out by Netflix, Hulu and Facebook.”
Mike McCue, chairman and chief executive of Flipboard, explained he will begin the video project at the end of this year and also hopes to sell electronic books.
Flipboard’s service takes a cut of the revenue from advertising. “We’re trying to create the largest company possible,” said Danny Rimer, general partner at Index Ventures, a Flipboard investor. Reuters points out: “Rimer believes display advertising revenue’s migration online is ‘a very big opportunity.'”
Hollywood Suite is a new video-on-demand service with plans to launch in Canada this November.
Available via cable, the Internet and satellite TV, the service will offer 450 titles per month in HD from MGM, Warner Bros. and others.
The Toronto-based platform will also feature independent action, romance and relationship films.
According to Home Media Magazine: “Movie titles, subscription fees and rental programs, which are expected to rival rates charged by Netflix, will be announced closer to launch date, according to industry veteran Jay Switzer, co-founder of Hollywood Suite.”
“These channels are designed to meet the strong audience demand for movies across all platforms and support Canada’s television service providers,” Switzer said.
As the monthly costs for pay TV have risen from $11.97 in 1986 to $49.70 this year, consumers are looking for inexpensive Web alternatives like Netflix and Amazon.com.
Three of the past five quarters have seen an overall decline in pay TV subscriptions, according to SNL Kagan.
“Barclays Capital analyst James Ratcliffe predicts that as young people who now rely on Internet-TV alternatives age, penetration of pay TV among occupied homes gradually will decline,” explains The Wall Street Journal. “He sees it dropping to 79 percent by 2018 from 89.5 percent now, although he predicts the pay TV industry won’t lose subscribers in an absolute sense until 2016.”
Miramax is following in the footsteps of Warner Bros., Paramount and Universal by making its films available on Facebook.
The Miramax eXperience will initially offer 20 titles in the U.S. and 10 each in Great Britain and Turkey (available films include “Good Will Hunting,” “Spy Kids,” “Chicago” and “Cold Mountain”).
Movies will be made available for 30 Facebook credits (equivalent to $3) and can be viewed on Facebook, the iPad and Google TV.
Miramax hopes to build its reach to 150 million+ Facebook friends in the next 18 months.
“The iTunes-like nature of Miramax’s Facebook movie rentals (i.e. per-movie charge, rather than a subscription fee) could prove very effective,” reports Social Times. “A lot of online movie watchers aren’t ready to commit to a subscription service like Netflix or Hulu Plus. Renting a single movie from Facebook may be more their style, and a $3 movie rental sounds like a pretty good deal, if you ask me.”
“In an upbeat and highly insightful essay on technology and innovation, pioneer Marc Andreessen outlines the ‘dramatic and broad technological shift in which software companies are poised to take over large swathes of the economy…'” comments ETCentric staffer Bob Lambert with this submission.
Andreessen notes HP’s announcement that it is “exploring jettisoning its struggling PC business in favor of investing more heavily in software” and Google’s plans to “buy up the cellphone handset maker Motorola Mobility” as recent surprises in the tech world, yet also examples of what makes the pioneer “optimistic about the future growth of the American and world economies.”
Andreessen suggests that Apple and Google are undervalued and we should avoid using the term “bubble” when analyzing the value of technologies. He writes: “…too much of the debate is still around financial valuation, as opposed to the underlying intrinsic value of the best of Silicon Valley’s new companies.”
“Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not,” Andreessen adds.
Andreessen’s essay offers a compelling take on the direction of the tech industry, its place in world economies and some of the challenges that lie ahead. He notes interesting examples including Amazon, Netflix, Pixar, Pandora, Skype and others.
“Instead of constantly questioning their valuations, let’s seek to understand how the new generation of technology companies are doing what they do, what the broader consequences are for businesses and the economy and what we can collectively do to expand the number of innovative new software companies created in the U.S. and around the world,” he concludes. “That’s the big opportunity. I know where I’m putting my money.”
The six largest cable and satellite TV providers lost 580,000 customers in the second quarter. This marks the largest such decline in U.S. history.
The number of pay TV subscribers has declined in three of the past five quarters.
“Rising prices for pay TV, coupled with growing availability of lower-cost alternatives, add to a toxic mix at a time when disposable income isn’t growing,” explains Sanford C. Bernstein analyst Craig Moffett. “For younger demographics, where in many cohorts unemployment is north of 30 percent, and especially for those with limited or no interest in sports, the pay TV equation is almost inarguably getting less attractive.”
Netflix and Hulu provide lower cost options. Competition from AT&T and Verizon is also having an effect.
Providers are struggling to deal with the trend. Dish, for example, is re-positioning itself away from lower income customers. Instead, the company plans to focus on more expensive offerings to increase average revenue per user.
An increasing number of viewers are turning to rental programs for movies and TV shows, according to a report from Digital Entertainment Group.
DEG also reports that consumer spending on home entertainment has stabilized with an unexpected recovery to the disc-based business in the second quarter.
The report concludes that consumers spent $4.2 billion on transactional video services — disc rental, streaming and VOD — during the first half of 2011. These figures mark an 11 percent increase over the same period last year.
The report also mentions a 16 percent drop in disc purchases, with combined Blu-ray and DVD sales falling to $1.8 billion in the second quarter. However, rental — including streaming and VOD — was up 11.16 percent. (Blu-ray sales increased 10 percent, while demand for DVD declined.)
Netflix rose 45.7 percent in the first six months of this year, while kiosk rental (mostly Redbox) rose 39.8 percent.
The Hollywood Reporter adds: “Spending on Blu-ray Discs was up a solid 10 percent in the first half. DEG estimates that the number of U.S. households with at least one Blu-ray Disc playback device rose 16 percent in the first six months of 2011 to bring total household penetration to more than 31.6 million, making the format one of the fastest-growing new technologies in the home entertainment industry.”
The new Elite brand of premium LCD TVs is the result of a collaboration between Pioneer and Sharp.
Two LED-based LCD models (60- and 70-inch) are 3D, THX certified, claim a refresh rate of greater than 240Hz and feature full-array backlighting instead of edge lighting. They also feature online services such as CinemaNow, Netflix, VUDU and YouTube.
Elite TVs include a yellow sub pixel with the standard red/blue/green, that when added together, creates more than 8 million dots on the screen.
“But the feature that the company is most hyping is something called Intelligent Variable Contrast,” reports Electronic House. “Found only on the new Elite TVs, it automatically controls both the brightness and backlight to enhance color depth, brilliance and detail in dark areas.”
The 3D Elites will ship with active shutter glasses — MSRP of $5,999 for the 60-inch model and $8,499 for the 70-inch.
Philips announced it will be including streaming set-top and gaming functions in some of its new HDTV sets.
The Philips 4000 and 5000 series, which use the CloudTV platform of ActiveVideo Networks, can access cloud-based games streamed as MPEG files.
Both lines will include Philips MediaConnect, that enables wirelessly connecting the TV and PC.
Other features include NetTV (offering services such as Netflix, VUDU, Facebook, Film Fresh, Pandora and Twitter), V-tuner Internet radio and built-in Wi-Fi support.
The 4000 series features six screen sizes, ranging from 19 to 55 inches, while the 5000 series adds another 10 screens, from 40 to 55 inches.
Time Warner CEO Jeff Bewkes announced the availability of Flixster Collections, a social movie portal that went into public beta this week.
The service, a revamped version of the Flixster product acquired earlier this year, encourages users to share what they’ve watched with friends.
If there’s something you want to see, for example, Flixster directs you back to Amazon, iTunes, Hulu and Netflix (as well as your hard drive, if you let it). There are also links for theatrical films, including reviews, trailers and ticketing services.
“You can also imagine how this will tie in to Ultraviolet, the cloud/locker system for video that Warner and a big coalition of movie studios and tech companies (except for Apple and Amazon) are pushing,” writes Peter Kafka in All Things D.
So far, Flixster Collections is available for PCs and Macs, but no mobile app yet.
Hulu will unveil an original documentary series on August 17. “A Day in the Life” is produced by documentary filmmaker Morgan Spurlock, and will be available exclusively on Hulu.
The half-hour show will follow the daily lives of celebrities, including business mogul Richard Branson and musician will.i.am.
Hulu is not the only online video site to venture into original programming. In March, Netflix announced an original series of its own: “House of Cards,” starring Kevin Spacey.
The series is Hulu’s largest and most ambitious original production, and will premiere as the service continues to court prospective buyers. Yahoo, Google, and Amazon are rumored to be potential bidders.
Lenovo’s ThinkPad Honeycomb tablet (starting at $480) will offer a stylus for taking on-screen notes, security features, detachable keyboard, Netflix compatibility and a variety of business features.
The new tablet is expected to ship by August 23.
Lenovo does not seem to be concerned with entering the Android tablet price war, since most of the other competitors are angling toward $400 and below. Instead, the company is positioning the tablet as a business-savvy device.
Digital Trends reports: “Lenovo is also launching a few accessories alongside of the ThinkPad. You can buy a folio-style case that has a built-in keyboard, which might mean the Asus Transformer might finally have some keyboard competition. Lenovo has been making some of the best laptop keyboards for several years, and if this keyboard can rival those it might be a game changer in the Honeycomb tablet war.”
Amazon has announced a deal with NBCUniversal to offer Universal films online, in a move designed to step up competition with services such as Netflix and Hulu.
Amazon offers subscribers to its “Prime” program discounts on shipping of products, and free access to an online library of films. The service costs $79 a year.
Amazon announced an agreement last week with CBS that expanded its library to more than 8,000 titles. The NBCUniversal deal will grow Amazon’s library to more than 9,000 movies and TV shows (compared to Neflix’s 20,000).
Films such as “Eternal Sunshine of the Spotless Mind,” “Being John Malkovich,” and “Fear and Loathing in Las Vegas” are part of the deal.
In an effort to help emerging artists reach wider audiences, the Sundance Institute has partnered with online video outlets including Hulu, Amazon, Netflix, iTunes, YouTube and SundanceNow.
The deals are not exclusive to any one platform, so films can be made available simultaneously on competing sites.
Films will be packaged under the Sundance name as part of its recently launched Artist Services Initiative. Marketing guidance will also be provided to filmmakers through the new Web-based program.
New Video will serve as the aggregation partner for online distribution, taking a small cut of the revenues. However, the online services will not purchase the movies, enabling the filmmakers to retain their copyrights.
Sundance hopes that the online initiative will provide an audience for films that typically do not find conventional distribution. First to be distributed: “Connected: An Autoblogography about Love, Death & Technology” by Tiffany Shlain and “On the Ice” from Andrew Okpeaha MacLean.
Netflix is reportedly negotiating for exclusive streaming rights to DreamWorks Animation films.
The deal would replace DreamWorks’ contract with HBO (which runs through 2014).
DreamWorks reportedly has permission to end its HBO contract early. If it does, it could provide content to Netflix by early 2013.
If the deal goes through, it would mark the first time a major studio has licensed content to subscription VOD at the same time (as opposed to after) its pay TV window.
In related news (see LA Times link), Netflix will not be including Facebook integration anytime soon in the U.S. (although it will be integrated in Canada and Latin America). This is based on the 1988 Video Privacy Protection Act that requires peoples’ video rental information be kept private. Netflix feels that the law is ambiguous as it relates to Netflix/Facebook, but they’re not taking any chances.
