Apple iTunes and Netflix Dominate the Online Video Market

Newly released statistics indicate that Apple’s iTunes and subscription service Netflix continue to lead the Internet video market. Earlier this month, we reported that Netflix held a clear lead in SVOD viewership over Hulu and Amazon for Q1. Yesterday, Apple announced that iTunes viewers are purchasing more than 800,000 TV episodes and 350,000 movies per day. Additionally, Apple announced that HBO GO and WatchESPN are now available directly on Apple TV. Continue reading Apple iTunes and Netflix Dominate the Online Video Market

Google to Acquire Traffic Mapping App Waze for $1 Billion

Following months of acquisition talks with multiple players, Google has announced it is purchasing traffic navigation company Waze. Financial terms were not disclosed, but sources suggest that Google offered more than $1 billion for the free mobile service, which is currently used by more than 50 million people and launched its global ad platform in November 2012. Other Waze suitors reportedly included Facebook and Apple. Continue reading Google to Acquire Traffic Mapping App Waze for $1 Billion

Dish Goes Up Against SoftBank to Purchase Sprint Nextel

Dish Network has received signed commitment letters from five banks, according to people familiar with the matter, bringing it closer to arranging $9 billion in committed financing for a planned $25.5 billion acquisition bid for Sprint Nextel. Dish has raised nearly $12 billion for the deal, which will compete with October’s $20.1 billion offer by SoftBank to acquire 70 percent of Sprint. The financing arrives a few days after Sprint agreed to enter into negotiations with Dish. Continue reading Dish Goes Up Against SoftBank to Purchase Sprint Nextel

New IDC Study: Will Microsoft Purchase Netflix and LinkedIn?

  • A study from IDC predicts that Microsoft may consider purchasing Netflix and LinkedIn next year in an effort to cash in on “the convergence of mobile computing, social networking, cloud services, and big data analytics.”
  • “Look for Microsoft to buy a content/media cloud, like Netflix, to provide a marketplace for its apps and content,” says Frank Gens, senior VP and chief analyst at IDC.
  • Gens refers to the platform built on mobile computing, cloud services, social networking, and big data analytics as the “3rd Platform.”
  • “The industry’s shift to the 3rd Platform will accelerate in 2012, forcing the industry’s leaders to make bold investments and fateful decisions,” predicts Gens. He suggests companies including Apple, Microsoft, HP, SAP, RIM and others will face “crossroads moments” next year.
  • Is Computerworld blogger Preston Gralla convinced? Not really. “Building an app store directly into Windows can serve the same purpose. If the price is right, buying Netflix might make sense. But I don’t expect the price to be right.”

Digital Music Study: Is Spotify Detrimental to Music Purchasing?

  • A recent survey of dedicated music demographics indicates access to music from services like Spotify, YouTube, Grooveshark and others significantly decreases the interest in purchasing across all groups except the least dedicated.
  • “Services like Spotify increase access, but also decrease spending in many situations.  Which means less money from higher-returning formats like iTunes downloads, CDs, and LPs,” according to Digital Music News. “But free access also includes a range of other services, including YouTube, Grooveshark, and various freebie competitors.  And all of these are sapping the juice out of higher-end impulse buying, once a music industry lifeblood.”
  • The recently released findings from NPD Group and NARM have already had an impact. “Following a study that claims that streaming music is damaging to record sales, a distributor representing more than 200 labels has withdrawn its entire catalogue from Spotify, Napster, Simfy and Rdio,” reports Huffington Post.
  • “As a distributor we have to do what is best for our labels,” STHoldings explained in a statement. “The majority of which do not want their music on such services because of the poor revenues and the detrimental affect on sales. Add to that the feeling that their music loses its specialness by its exploitation as a low value/free commodity.”
  • In a related All Things D story, Spotify announced it has new things on the horizon, but has yet to provide details. “In New York on November 30th, we are holding our first press conference to unveil the latest major development from Spotify — and a new direction for the company. The press event will be hosted by CEO and Founder Daniel Ek, along with special guests,” wrote the company’s PR unit.
  • All Things D speculates Spotify may be releasing a U.S. service to buy songs (already available in Europe) or an iPad app, but “it is courting the risk of overpromising” if these are the only developments to be announced.