A new report from media forecasting firm Magnaglobal shows that by 2016 cable subscriptions will dramatically decline as online becomes the medium of choice.
Magnaglobal predicts that 9 million households will not subscribe to traditional pay TV services (triple today’s amount), of which 4 million will be cord cutters who cancel their service to opt for content via the Internet.
Additionally, The New York Times points out that the number of young consumers who have never signed up for cable or satellite service, but rely on services such as Hulu and Netflix for their media, will continue to grow. “The number of people who never signed up for cable is expected to double — to 5 million, from 2.5 million today — by 2016, according to the report.”
The growth of DVR ownership is also expected to decline, as consumers continue to adopt devices that enable streaming of content via the Web.
Nielsen data is no longer enough for effective TV planning and buying, suggests Networked Insights, a company that “analyzes social data to uncover trends and consumer engagement opportunities.”
Networked Insights recently published reports that focus on the value of television viewers’ social data. One such report examined top social TV shows from FOX, NBC, ABC, CBS and CW. Viewers were grouped by TV Fans, Millennials, Gamers, Electronic Consumers, Moms and Sports Fans, while general sentiments from each group were analyzed.
“What’s impressive is how the company looks at specifically where ad money is being spent to analyze the conversations around the show,” reports Lost Remote. “For example, before the show even premiered, they described NBC’s ‘massive ad campaign’ for ‘Whitney’ as a ‘Social Turkey,’ and that ‘over-hyping a show is underwhelming potential fans.'”
Another report revealed opportunities for a Toyota Corolla TV ad to improve its digital strategies, specifying where targeted spending would be most effective. Respondents included fans of AMC’s “The Walking Dead.” The article suggests that the case study “is pretty compelling proof that social data can help you get the competitive advantage in TV planning and buying if you listen in the right places across the social web.”
Networked Insights recently announced $20 million in series B funding from Goldman Sachs.
Microsoft is getting a boatload of new content for its Xbox video service intended to help it serve as a digital media hub. The company has struck deals with Comcast, Verizon, HBO and others.
Verizon and Comcast will be joining AT&T’s U-Verse to provide content, although while Verizon will include live video TV and video on demand, Comcast is testing the waters with its VOD library only. HBO Go streaming access will provide HBO original programming and movies from Warner Bros., Fox Searchlight and Universal Studios. Bravo, EPIX and Syfy are among the cable networks that will be available. Xbox’s international content will include the BBC, Channel 4, Channel 5 and LOVEFiLM in the UK; Antena 3, RTVE and Telefonica in Spain; and Televisa in Mexico.
But how do you get to the movies, TV shows, games and music that you want? Microsoft hopes you will command your Xbox with voice control, motion control and a Windows smartphone.
“This is incremental stuff but it’s still interesting. A source who’s played with the new service says it’s genuinely cool. Just as important, given that Microsoft has sold some 50 million compatible machines, it has (potential) leverage to do some really interesting stuff,” reports All Things D. “This is where Google TV would like to be, and it’s why Google is out pitching content guys for a relaunch this fall.”
France recently banned TV and radio show hosts from naming Facebook, Twitter, or other specific sites unless directly referencing a news story involving the companies. The regulation was created to reduce bias for the popular social networks over other striving, lesser known sites.
Apple’s iTunes has benefitted from the phrase “Now available on iTunes” commonly tacked onto advertisements where it was previously customary to simply say “Now available in all good music stores” — which could today be updated to say “online music stores” in order to include other music providers.
Additionally, the phrase “Now available on Amazon.com” has become standard for book promotions, which basically provides free advertisement for the site while ignoring other providers.
Similarly, “Follow us on Twitter” and “Like us on Facebook” have dominated commerce. “Social networks only work when people use the same ones. In other words, they naturally lend themselves to being monopolized,” suggests The Next Web.
Some brand names have now become part of everyday language. Google, for example, has grown so popular that it is commonly used as a verb when describing the act of searching online. TiVo is also regularly used as verb, and sometimes replaces “DVR” in conversation.
The article casts doubt on the actual effects regulation would have on social media monopolies: “…users will typically go where all the action is taking place.”
“The Internet isn’t a monopoly though. It’s an oligopoly consisting of multiple monopolies from different digital industries, and the reason this is happening really isn’t all that complicated,” adds The Next Web. “Success breeds success, something which underpins most monopolies, whether we’re talking about dominant languages, biological species or, indeed, Internet technology companies. Hegemony stems from success, and it’s certainly not unique to the Internet age.”
Producer Mark Burnett and the team at Youtoo is hoping to kickstart the first age of social TV by “putting 500 people on TV each day — providing more Americans than ever before with a real shot at their 15 minutes of fame,” according to the press release.
Burnett’s production studio VIMBY (Video in My BackYard) and online distributor KoldCast TV have joined Youtoo CEO and founder Chris Wyatt in the venture.
“VIMBY will be producing content for the network asking users to submit video ‘FameSpots’ or ‘Social Shouts’ via the Web, iPhone, iPad or Android to insert themselves into the content,” reports Lost Remote.
Youtoo’s patent-pending software and cross-platform technology stack enable users to record an HD broadcast quality video, or a “FameSpot,” which is filtered by the software and if chosen, will be put into the live broadcast feed.
“Youtoo is the world’s first social TV network,” says Wyatt. “Since millions of people want to be on TV, we created a website and app for that. Youtoo is a social network, television network, and the technology to make them all work together. Just like a social network, you can interact with your friends or followers. However, you can also interact with a national audience on TV. Think of it as Facebook for TV in concept.”
Youtoo launched September 27th in beta and is currently live. According to Wyatt, the network has distribution to 15 million households through Comcast, Time Warner, Cox, Charter, Verizon, Service Electric, Bright House, National Cable Television Cooperative and Insight Cable.
Toshiba is showcasing its 55-inch Regza 55X3 TV at CEATEC this week in Japan. The unit boasts a resolution of 3,840×2,160 — and glasses-free 3D at 1,280×720 — for what TechCrunch is calling “the first TV of its kind.”
“The TV features 5,000:1 contrast ratio, LED backlight, a new processor called ‘REGZA Engine CEVO Duo,’ a face-tracking function to enable high-quality 3D pictures for viewers, REGZA LINK, five digital tuners, 10W×2ch+10W speakers, four HDMI ports, and two USB ports,” reports TechCrunch.
TechRadar reports that the Toshiba TV joins Sony’s VPL-VW1000ES projector and Sharp’s 60-inch LCD in the 4K offerings featured at CEATEC this week. The report also suggests Toshiba hopes to ship 1,000 units a month of the Regza 55X3. “This is high hopes for a technology that’s burgeoning in the cinema market but is brand new in the home,” indicates TechRadar. “And with the economic climate as it is will be something of a battle, even with both Sony and Toshiba on board.”
The Regza 55X3 will be available by December in Japan for $11,730 (U.S.).
A comprehensive comparison between Netflix and other streaming services shows that, even after the recent criticism regarding the split of its businesses, “Netflix is still the champ, but only if you count both its the streaming and DVD mailing services.”
In his evaluation of current offerings, David Strom of ReadWriteWeb examined services such as Amazon Prime, Hulu Plus, Vudu.com and Justin.tv.
“Overall, once you leave Netflix you will find fewer choices and searching won’t be as easy to find something to watch,” he writes. “Netflix has a great search engine that won’t just look for movie titles but also check for actors and other principals involved in the movie itself, something the other services don’t do as well at.”
Another upside to Netflix is the ability to use devices such as the iPad or TiVo box to stream movies. While of the services enable streaming to your Windows or Mac Web browser, they’re not all compatible with other devices.
“So while you might be upset about paying for two bills for your video rentals from Netflix, unless you are willing to spend more time searching for content, you are probably better off sticking with the service for the time being, at least until the others catch up with their content licenses,” Strom concludes. “Or if you already have a cable TV subscription, investigate whether it offers something similar to Comcast’s Xfinity and see what their coverage is there. Ironically, that might be your best alternative to Netflix after all.”
Amazon’s launch of the Kindle Fire tablet may have an impact on Netflix, since the new tablet will make it easier for users to watch streaming video content via Amazon.
“With its $199 price point the tablet could sell like crazy this Christmas,” reports Forbes. “Users will be encouraged to buy Amazon Prime in order to speed their Amazon purchases and Prime just happens to come complete with Amazon’s streaming video service.”
The decision for consumers between Amazon Prime and Netflix will likely be based on pricing and variety of content offerings.
Amazon Prime beats Netflix on price, set at $80 a year ($6.67 per month), while Netflix streaming costs $8 a month.
Netflix, however, has more variety of content with 51,000 titles currently available for streaming, compared to Amazon’s 11,000.
Amazon may soon be able to compete in this regard with added content from Fox and CBS deals. Netflix has similar deals with Fox and CBS and a new DreamWorks Animation deal, but it will lose movies from Sony and Disney with the loss of Starz.
Both companies may press Hollywood to license more content for streaming, but continuing to pay more for films could potentially break Netflix, while Amazon has other sources of revenue to cover costs.
Rob Wiesenthal, chief financial officer of Sony America and chief strategy officer of Sony Entertainment, says TVs will get access to video content through tablets which would enable, for example, Sony’s Video Unlimited subscribers to go to a friend’s house and “throw” a film to the TV set.
“If you think back five years, it was all about the boxes; Tivo, Slingbox, Roku,” he said. “I think consumers really had box exhaustion.” Apple’s AirPlay, for example, allows iPads and iPhones to wirelessly connect to TVs.
Sony is using the Digital Living Network Alliance standard to interoperate with different manufacturer’ devices without the need for a box.
“Other benefits include the lure of offering more targeted advertising through an IP-enabled tablet than has proved possible through set-top boxes, and the advantages of finding content on a tablet rather than by aiming a remote control at a TV 10 feet away,” reports Financial Times.
In order for this approach to work, however, home Wi-Fi networks will require the capacity to transfer large video files without interruptions and cable providers will need to be willing to make content available this way.
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.
Amazon has unveiled the Kindle Fire — a 7-inch touch-screen, color, and Wi-Fi tablet with dual-core processor that will sell for $199. The new tablet was announced by chief exec Jeff Bezos at a press event yesterday in New York City.
The Android-based device will offer access to Amazon’s app store, books, streaming movies and TV shows. Moreover, the expectation is that it will increase sales for Amazon’s other merchandise. Fire is available for pre-ordering and will be available November 15.
“The online retailer is gambling it can succeed with its tablet where several other giants, including Hewlett-Packard Co. and BlackBerry maker Research In Motion Ltd., have so far failed,” reports The Wall Street Journal. “Unlike those companies, Amazon already has a vast library of digital content to sell and tens of millions of credit-card numbers.”
The article suggests that the Kindle Fire may have an advantage over other tablets that have attempted to take on the iPad: “Amazon’s library of digital content, which its tablet users can access. Customers can pay $79 a year for a service known as Amazon Prime, which gives them access to 11,000 movies and TV shows, as well as unlimited two-day shipping for physical goods purchased on Amazon.com. Amazon also sells single movies, TV shows and music songs, with a catalog that competes with that of Apple’s iTunes store.”
Amazon also introduced three new Kindle e-readers — a touch-screen 3G version for $149, a touch-screen Wi-Fi version for $99, and a non-touch-screen model for $79.
Amsterdam’s annual IBC event offered a number of potential TV game-changers earlier this month, suggests TVNewsCheck. These include cloud-based or service-oriented architecture (SOA) applications for capturing, producing, processing and distributing digital video and audio; IT-based playout (channel in a box) tools that could potentially make broadcast playout more affordable; and 3D technology likely to be deployed for the 2012 London Olympics.
Also on display were technologies “aimed at making 3D production more affordable and compatible with standard 2D operations.”
Cloud services were at the forefront since broadcasters are now challenged by having to support an increasing number of distribution platforms.
Vendors discussed the fundamental concerns about cloud-based architectures, “notably content security, access to content, collaboration, bandwidth and workflow continuity,” reports TVNewsCheck.
In a related article from GigaOM that analyzes shifts in traditional television, venture capitalist Habib Kairouz writes that the TV industry is poised for some significant changes due to a number of upcoming trends: TV anywhere and anytime will catch on; the rise of the Internet-connected TV and interactive programming; and personalized advertising.
The article suggests that content owners will benefit as MSOs, IPTV providers, and others compete with one another. MSO’s are hedging their bets by purchasing both traditional and interactive content, while TV manufacturers are looking to build Internet services into their low margin businesses. We should watch for new entrants to increase the disruption in this space.
Pandora now claims more than 100 million registered users. CTO and EVP of Product Tom Conrad credits the success of his company’s Internet radio service with the decision to embrace both Apple’s iOS and Google’s Android mobile operating system. Conrad spoke at this week’s GigaOM Mobilize conference.
However, Pandora had a rocky start regarding growth on mobile platforms until the iPhone came along to help turn things around. And at one point, Conrad had little interest in Android. Pandora shipped its app through the iTunes store and watched its user base explode from 13 million to what it is today.
“Conrad has also since made peace with Android, about which he had previously said that he needed the platform ‘like I need a hole in my head,’ referring to the confusing state of Android fragmentation. On Monday, Conrad didn’t want to go into the specifics of Android vs. iOS market share amongst Pandora users, but he called Android’s growth ‘nothing short of remarkable.'”
Now Pandora is embracing HTML5 as it looks to what’s next.
“The company launched a new HTML5-powered website last week, and Conrad said that using HTML5 helped to both dramatically increase the performance of the site as well as implement new social features,” reports GigaOM.
Conrad calls HTML5 a “key enabler for connected devices,” hoping that it will provide opportunities for Pandora on connected TVs and car dashboards.
Currently, 70 percent of Pandora’s listening occurs on mobile devices. “In the future, the majority of Pandora listening will happen in the car and on the connected device,” predicts Conrad.
Hulu has proven successful with providing TV content online (the service is second only to YouTube in terms of viewer engagement), but the video platform has yet to effectively break into practical social offerings. That may change with its new Facebook app, which strives to make the Hulu experience more social.
The new app will enable viewing of content directly within Facebook, will allow you to see what your friends are watching (with approval), and will provide options for having conversations about shows and leaving comments.
“The coolest part? As you’re watching Hulu content, be it a full show, clip, or film, you can leave comments on particular moments within the video. Oh yes. SoundCloud-style,” reports TechCrunch. “And, naturally, once you leave a comment on a particular moment, you can then blast it out to friends to let them know how clever you are — on both Hulu and Facebook.”
Hulu Plus users can access their entire library in Facebook. And you can elect not to share what you watch with friends, via the share settings or privacy settings on Hulu or Facebook.
TechCrunch is enthusiastic about the app: “We welcome you, Hulubook. Facebulu.”
Dish Networks has announced its Blockbuster Movie Pass service that will offer streaming video; DVDs, Blu-ray discs and games by mail; and a satellite subscription service with on-demand movie channels.
Launching October 1, the service will initially be available to Dish subscribers and offered to others at a later date.
Movie Pass will include more than 100,000 movies and TV shows by mail, 5,000 streamed movies to TV and 10,000 to computer, and 3,000 games by mail. Users will have access to 20 premium Dish movie channels and the ability to exchange discs in-store at Blockbuster locations.
Current Dish Network subscribers will pay $10 per month for the service, while new Dish subscribers will have an opportunity for a free introductory year.
While the streaming capacity of the Blockbuster Movie Pass is not yet that of Netflix or Amazon, users will have access to movie offerings through Dish movie channels about a month earlier than other services. Also, Movie Pass touts “one company, one bill and one connection,” something that Netflix no longer has after splitting its streaming and mail-in services.