Apple and Amazon, two of the world’s most successful retailers, find themselves struggling in today’s market to increase the sales of books, movies, music, and games because of a shift in consumer priorities. It seems that consumers no longer want to buy media; they want to rent it. The two companies can be considered largely responsible for creating the problem because they made it so easy to rent books and stream music that consumers didn’t feel the need to buy media anymore. Continue reading Consumers Transitioning from Purchasing to Renting Media

Quora, the community-powered question-and-answer site, is becoming one of the latest online spaces for Hollywood to find ideas. Emmy Award-winning producer Josh C. Kline optioned an idea on Quora, in which a dystopian U.S. spirals into a second Civil War. Kline is in the process of pitching a TV show inspired by the Quora response, written by retired U.S. Marine Sergeant Jon Davis. The Quora company has no plans to profit from any talent discovery on its site. Continue reading Producer Pitches a TV Series Based on Quora Q&A Response

In order for online video producers to make money, YouTube offers a feature that allows viewers to donate to their favorite artists. Independent content creators are the major source of revenue for YouTube, and while some of them do make money through pre-roll ads, it is not enough for many. Now, Google offers Fan Funding so viewers can essentially tip their favorite video creators. The feature works in both the browser and the Android app, and all transactions are processed by Google Wallet. Continue reading YouTube Feature Enables Fans to Donate to Content Creators

Facebook announced that its profits more than doubled and revenue exceeded estimates for the ninth straight quarter due largely to mobile ad growth. About 62 percent of the social network’s ad revenue now comes from mobile devices. According to eMarketer, advertising for mobile this year is projected to surpass advertising for newspapers, magazines and radio for the first time. Facebook also added another 40 million registered users, with the daily login increasing by 27 million. Continue reading Facebook Experiences Surge in Users and Mobile Ad Revenue

Kumo, a startup that hopes to offer consumers access to individual channels rather than entire bundles, has raised $50 million in financing. The company may face significant hurdles, since content creators and owners have historically avoided this type of model, fearing a negative impact to their revenue streams. Unlike Aereo’s failed attempt at pairing an antenna with a cloud storage service, however, Kumo is reportedly working to license content for its a la carte approach. Continue reading Kumo Aims to Break TV Bundle by Offering Specific Channels

During its much-publicized dispute over a new e-book contract with the Hachette Book Group, Amazon has proposed letting the publisher’s authors keep 100 percent of their e-book sales revenue while the tense negotiations continue. The proposal is Amazon’s response to Hachette authors’ complaints that they have become collateral damage in the ongoing negotiations. Hachette immediately rejected the proposal, suggesting that accepting it would be “suicidal.” Continue reading Amazon and Hachette Continue Tense E-Book Negotiations

Facebook is currently building FB@Work, a version of its social media platform specifically designed for use during work hours. The effort, based in London, is a version of the site optimized for professional use, although sources did not specify whether FB@Work would focus on a chat system for communication within the office, or if it would be a professional social tool along the lines of LinkedIn. The general idea, however, is to create a version of Facebook that is less distracting in a work environment. Continue reading Facebook Reportedly Developing a Version for the Workplace

Amazon is making books unavailable for pre-ordering and extending shipping times due to its dispute with one of the country’s largest publishers, Hachette Book Group. These tactics put pressure on Hachette as the two companies negotiate new terms of a deal for Amazon to sell the publisher’s books online. Amazon wants to increase its cut of the sales from Hachette books and e-books. In a statement Tuesday night, the online retailer said it does not expect the dispute to be resolved any time soon. Continue reading Is the Amazon-Hachette Dispute About More Than Book Sales?

Redbox, the nation’s largest DVD renter, is uninstalling more than 500 kiosks, renegotiating contracts with studios for more favorable content rights, and optimizing its streaming service, Redbox Instant. These changes come as the company faces several challenges: revenue rose only three percent last year after double-digit increases in past years, good locations for kiosks are dwindling, and Redbox Instant only accounts for less than 1 percent of video-on-demand rentals. Continue reading Redbox Refocuses as Sales and Streaming Service Stagnate

Mortar Data, a New York-based company known for building and hosting custom big data applications, recently announced the launch of a recommendation engine platform that allows anyone to build their own system, and use it with their own data, for free. Recommendation systems are becoming increasingly popular, and have become a gold mine for big companies such as Pandora and Netflix, which use the services to make recommendations based on customer history. Continue reading Mortar Data Makes it Easier to Build Recommendation Engines

Because of automated ad-buying technology, illicit sites streaming video content can make hundreds of thousands or even millions from advertising. MediaLink researched 596 piracy sites, and found that the advertising, often from major brands, generated $227 million annually. These sites get to keep most of this revenue because profit margins typically range from 80 percent to 94 percent after site maintenance and human resources fees are paid. Continue reading Today’s Piracy Sites Making Millions in Advertising Revenue

Activision Blizzard and Electronic Arts released positive financial results and showed optimism about the holiday shopping season. EA said sales of new video game consoles from Microsoft and Sony exceeded their goals, as well as the sales of games for those devices. EA also announced a repurchase plan for $750 million shares, and a lofty profit forecast for the rest of the year. Activision reported that presales for the newest version of “World of Warcraft” are the strongest in the game’s history. Continue reading Optimistic Financial Reports from Electronic Arts and Activision

Facebook is expected to launch its mobile advertising network during the F8 developer conference in San Francisco at the end of this month. Facebook plans to leverage its massive user information database for better ad targeting, and will pitch the ads to publishers and developers. The social giant will also benefit from expanding its ad reach, and will allow the company to profit from its over 1 billion users even when they are not on the site itself. Continue reading Facebook Plans to Launch its Long-Awaited Mobile Ad Network

Amazon recently announced Dash, a barcode scanner and microphone that makes no-click online shopping possible. Dash is also connected to Amazon’s same-day delivery grocery service, and basically transforms a person’s house into a showroom. A user can easily scan a product to order it, and even speak into the microphone and Dash will put the item in the user’s cart. The mic puts Amazon ahead of Apple’s Siri and Google Now, since Amazon directly profits from its use. Continue reading Amazon Dash Makes No-Click Online Shopping Dangerously Easy

Sony and Microsoft have shipped more than 12 million new game consoles since the products launched last fall. One day after Sony announced it has sold more than seven million PlayStation 4 consoles (up one million since March), Microsoft said it has sold more than five million Xbox One units to retail shops. According to NPD Group’s U.S. retail data for March, hardware sales rose 78 percent from the previous year to $395 million, while sales of new console and PC video games in retail stores dropped 28 percent to $432 million. Continue reading Microsoft and Sony Announce Game Console Sales Figures