ZDNet Must Read:
HP vs. Dell: Showdown at the Windows 7 upgrade corral
Here's a tale of two PC titans: HP and Dell. One executes well every quarter. The other doesn't. Both see big PC upgrade cycles ahead. Both are looking to ride... Continued »
Category: Entertainment
November 19th, 2009
The future of...remote controls
How often do you lose the TV remote? ZDNet correspondent Sumi Das explains why the days of digging under couch cushions may be numbered thanks to sensors and chips that can “see” and “understand” hand gestures.
November 16th, 2009
NPD: The subscription model bucks economy
The economy may stink, but consumers are clinging to their entertainment and mobile subscriptions.
According to NPD, monthly per capita entertainment subscriptions rose to $115, up 7 percent from a year ago.
The breakdown from NPD is notable. To wit:
- As of August, 81 percent of U.S households subscribed to a television service (cable, satellite and fiber-optic).
- 76 percent have an Internet subscription.
- 17 percent subscribe to an online music service or satellite radio.
- 14 percent subscribe to an online gaming service.
- Mobile data subscription plans were 9 percent, up from 6 percent last year.
- 14 percent of consumers had a home-video subscription service like Netflix, up 2 percent from a year ago.
- 29 percent of Americans had a newspaper subscription, down 2 percent from a year ago (you’d think it would be worse).
- And 41 percent of consumers subscribed to magazines, down from 43 percent from a year ago.
November 13th, 2009
Smart Planet: Interactive TV builds literacy skills among low-income kids
Carlin Llorente, a researcher at SRI International discusses recent findings that shows low-income pre-school kids benefiting from a curriculum that includes public media content inside the classroom. The study confirms that kids are better able to learn letters and sounds when watching educational videos and actively participating with their teachers. SRI International partnered with the Corporation of Public Broadcasting and the Education Development Center on the study.
October 28th, 2009
Interactive media is about to hit the gym: Great, just great
Netpulse, a company that aims to transform fitness equipment into an interactive social entertainment experience, landed $3.1 million in venture funding. Oh the promise of a treadmill that allows you to use Twitter.
Excuse me while I sprint away from this idea. Why?
My workout is one of the last places where I don’t have to be social. Do I really want mile 5 tweeted? The tweet could look like this: Larry just tweaked his hamstring. Tweet: Larry’s really struggling. Tweet: He’s hanging over the treadmill again and doesn’t look so good. Who are these people that can get a real workout while engaging with Netpulse’s “interactive entertainment platform?”
Here’s the Netpulse vision from a statement:
October 26th, 2009
Netflix lands Sony PS3 distribution deal; Bolsters streaming footprint
Netflix’s streaming movie and TV service will be made available to Sony’s 9 million PlayStation 3 customers under a distribution partnership announced Monday.
Netflix said it will begin streaming through the PS3 next month (statement, Techmeme, PlayStation blog). The move gives Netflix another leading game console for streaming—it also has a deal with Microsoft’s Xbox.
The Sony pact could be a double bonus for Netflix. For starters, the PS3 is also a Blu-ray player so its users may be more inclined to also use Netflix’s DVD-through-the-mail service.
On Netflix’s third quarter conference call, CEO Reed Hastings hinted that the company would announce a big deal with a leading consumer electronics company.
One potential complication for the Sony-Netflix pact is that it will require a “streaming Blu-ray disc” that will need to be in the PS3 to show the movies and TV episodes available. The disc uses Blu-ray’s BD-Live technology to get to the Internet and activate Netflix. Simply put, the disc isn’t as smooth as a straight embed of the Netflix service. Netflix subscribers will have to order the disc—it’s free.
Netflix has been on a roll. The company’s third quarter earnings report last week revealed a company that’s largely recession proof, growing rapidly and setting itself up for streaming as its dominant business model. Netflix has a DVD-rental business that’s doing well and a streaming service that’s expanding its footprint.
The company reported third quarter earnings of 52 cents a share, 7 cents better than Wall Street estimates. Netflix ended the third quarter with 11.1 million. Revenue for the quarter was $423.1 million, up 24 percent from a year ago.
The company’s third quarter conference call has a bevy of notable nuggets. Among the notable quotes from Hastings:
- “Of the 115 million estimated households in America, 9.6% now subscribe to Netflix. In the greater San Francisco Bay Area, which we believe is a leading indicator of Internet behavior elsewhere in America, 21.2% of households now subscribe to Netflix, up 13% from one year ago.”
- “Our rollout of Saturday shipping is now complete across our 58 distribution centers, and we have been working on automation of our distribution centers for many years, and shortly, we will place a roughly $40 million automation order for rental return machines that can accept the returning DVDs, open them, clean them, inspect them, and prepare them for reshipment. These machines will save us some money and improve the quality of our service. They make financial sense because our DVD shipment volume is still growing and we expect to be renting DVDs until 2030.”
- “One year ago, approximately 22% of our subs instantly watched a TV episode or movie in Q3. Most of those 22% watched more than one TV episode or movie, but all 22% instantly watched at least 15 minutes. For Q3 of this year, that figure has grown to about 42% of subscribers.”
October 1st, 2009
Comcast plus NBC Universal creates a Web juggernaut
If Comcast did manage to gain control of NBC Universal it would be have an aggregation of Web sites that would make it a top 10 player in comScore’s top 50 rankings.
According to CNBC, General Electric is talking to Comcast about a deal that would spin off NBC Universal and combine it with the entertainment assets of the cable giant. In the end, Comcast would control NBC Universal. Talks are fluid and may fall apart, but Comcast, which tried to buy Disney before, appears to be serious about NBC Universal. GE certainly wants to unload the network.
On the old media side, Comcast would own content and distribution in a combination that would either be a boon or a bane. Time Warner had the content-distribution mojo, but decided it was better to separate its distribution (Time Warner Cable) from content (HBO, TBS and other properties).
While the Internet ramifications are likely to be overlooked it’s worth noting that Comcast-NBC would have a bevy of assets. To wit:
- Comcast has the broadband network (distribution).
- Comcast-NBC would have the No. 22, No. 41 and No. 43 properties in comScore’s top 50 for August.
- Comcast would have a stake in Hulu via NBCU that delivered 488 million video streams in August.
- Comcast would have a large women’s network (iVillage via NBCU).
- Comcast would continue with its TV Everywhere initiative.
Wrap it all up and Comcast-NBCU’s Web ranking would fall in about No. 6 or No. 7 on comScore’s scorecard. With a little push, Comcast-NBCU would nudge out News Corp.’s interactive properties.
Here’s a look at comScore’s ranking with Comcast-NBCU’s potential reach highlighted:
For now, the chatter will revolve around big media, Comcast’s penchant to own a network, earnings dilution and questionable logic. But don’t forget the Web reach: Comcast-NBCU would be a big player in an instant.
September 29th, 2009
Akamai aims to bring HDTV to the Web
Akamai on Tuesday unveiled a network for high-definition video designed to deliver content via Adobe Flash and Microsoft Silverlight and Apple’s iPhone. The goal: Deliver an HDTV experience online.
The company, which delivers video and applications, via a 50,000 server network that moves content closer to Internet users, said Akamai HD will support live and on-demand HD streaming with personalization features.
Akamai’s HD platform, which will be demonstrated later today, will be designed for what the company calls “the most popular runtime environments”: Adobe Flash, Microsoft Silverlight and the iPhone.
Among the key features of Akamai HD:
- Adaptive bitrate streaming: The network adjusts its HD bitrates and monitors bandwidth levels for uninterrupted playback.
- Immediate response: Viewers can interact with the video player and shift times instantly.
- HD video player: Akamai is offering an open standards player.
- Player authentication: Ensures only authorized players can access content.
In a statement, Paul Sagan, CEO of Akamai, said that the Internet is quickly moving to HD-quality video and needs to hit broadcast-size audiences quickly.
September 24th, 2009
3D football, anyone? Intel offers peek at 21st Century television
TV isn’t TV anymore. It’s out of the box. It’s off the wall and it’s not going back anytime soon.
That was the opening line of the final keynote at the Intel Developer Forum, delivered by Intel exec Justin Rattner, who took to the stage to talk about the future of TV. At last year’s IDF, Yahoo and Intel sparked some interest with their demos of Widget TV, which will bring an app-like experience to the living room screen. This year, the focus was around a couple of other topics, including multiple devices, customization, social interaction and the coming of 3D viewing.
It’s pretty much a given that a 21st Century television experience is on the horizon. Rattner pointed out some stats: by 2015, expect to see 500 billion hours of video content on the cloud and 12 billion devices capable of receiving “TV” content via the Internet. The devices part is important to remember, especially as it relates back to the continuum that Intel CEO Paul Otellini referenced in the opening keynote earlier this week.
The idea is that the video viewing experience should be the same whether you’re watching on a TV, laptop, iPhone or some other sort of mobile Internet device, or MID. Developers and content creators shouldn’t have to worry about the platform, Otellini said. The technology should allow the content to recognize the platform and adjust accordingly. But Intel has visions of taking the interaction between TV and mobile devices a step further.
September 21st, 2009
Should Apple buy Sonos?
Apple should ponder acquiring Sonos in a move to tackle the home audio networking market, a small niche with big potential, according to an analyst.
That’s the takeaway from a research note penned by William Blair analyst Ralph Schackart. The report makes a lot of sense. The logic goes like this: Read the rest of this entry »
September 2nd, 2009
WSJ: YouTube and movie studios in talks over streaming rentals
Google-owned YouTube is in discussions with major motion picture studios, including LionsGate Entertainment, Sony and Warner Bros., to allow consumers to rent and stream movies for a fee, according to a report in the Wall Street Journal that cites unnamed sources.
The WSJ report stressed that negotiations are continuing and that there are no guarantees that a deal will be struck. Among the details still being hammered out is whether users will also be able to download movies, as opposed to just a stream over the Internet. Pricing would be around $3.99 or comparable to what people are already paying for video-on-demand titles.
YouTube, which isn’t yet profitable, has been looking for a solid revenue plan that goes beyond advertising on pages hosting free video clips. The site does include some full-length movies but those are largely free, lesser-known titles.
Currently, Apple, Amazon and Netflix offer some full-length motion pictures for download or streaming, though the titles and release dates vary based on a number of factors, including DVD release dates.
August 27th, 2009
TV Everywhere: (Almost) everyone is at least trying it
Verizon and Time Warner Cable are the latest to hop on board the “TV Everywhere” bandwagon. Comcast and Time Warner already have trials going.
The concept behind TV Everywhere, which made a splash with Time Warner and Comcast in June, is simple enough: Make your cable subscription portable to any Internet accessible device. Time Warner and Comcast have started limited trials with participation from Time Warner’s TNT and TBS networks. CBS, parent of ZDNet, HBO, Cinemax and Starz are some of the other content providers participating in the trial.
And now it’s time for Verizon and Time Warner cable to give it a go (Techmeme).
Details about the Verizon trial are a bit sparse. In a statement, Verizon said that FiOS TV subscribers will be able to checkout TNT and TBS programming on demand over broadband or wireless video. Since I’m a Verizon FiOS subscriber I’ll be interested to see how the trial goes. Authentication between services will be the big hang up. Verizon said it will add other content providers shortly.
Time Warner Cable’s attempt at TV Everywhere is much more developed. Time Warner Cable’s TV Everywhere trial will include: TBS, TNT, HBO, CBS, Syfy, BBC America, AMC, WE tv, IFC, Sundance Channel, Discovery Communications and Smithsonian Channel. The first trials will reach about 5,000 Time Warner Cable subscribers, according to a statement.
Time Warner CEO Jeffrey Bewkes has championed the TV Everywhere concept for much of 2009. On a conference call announcing the Time Warner-Comcast trials, Bewkes said TV Everywhere could be more successful than YouTube and Hulu.
Other groups such as Public Knowledge and the Media Access Project have criticized TV Everywhere as an attempt to preserve the cable business model.
You bet cable providers are trying to preserve their models, but is that such a bad thing? If I’m already subscribing to cable channels I should be able to view them online. And if that’s more of a convenience for me I’m all for it. If TV Everywhere flops there are always other online video outlets.
Also see: Knowledge@Wharton on TV Everywhere
August 26th, 2009
TiVo sues AT&T, Verizon over DVR patents
TiVo said Wednesday that it is suing AT&T and Verizon over three DVR patents. The complaints seek damages and a permanent injunction.
Simply put, TiVo is pursuing the same legal playbook it followed against DISH/Echostar. The patents in question include 6,233,389, 7,529,465 and 7,493,015.
TiVo recently won another legal victory against Echostar, which was found in contempt of court in its legal spat. TiVo won $103 million in damages, but the case will have another hearing in November or so. Echostar appeals continue. Meanwhile, the U.S. Patent and Trademark Office is reviewing TiVo’s patents at Echostar’s request.
In a statement (earnings and lawsuit), TiVo CEO Tom Rogers said:
We will continue to pursue enforcement where necessary to stop infringement of our intellectual property.
On a conference call, Rogers noted that TiVo was still going to generate value through partnerships and distribution deals, but wanted investors to recognized the company’s intellectual property portfolio.
The lawsuits against AT&T and Verizon come as TiVo reported a fiscal second quarter net loss of $2.9 billion, or 3 cents a share, compared to a profit of 3 cents a share a year ago. The company reported revenue of $57.3 million, down from $65.2 million a year ago. Wall Street was expecting a loss of 5 cents a share.
Rogers called the quarter “solid” since the company delivered adjusted EBITDA of $5.2 million. TiVo said it has been focused on distribution via the likes of RCN and Best Buy. The company also said DVR rollouts with Comcast and DirecTV are on track.
August 26th, 2009
Hollywood studios offer 'download to own' DivX movies online; Film Fresh the new iTunes?
For the first time ever, movie titles from Lionsgate, Paramount, Sony and Warner Bros. will be available for download online in the DivX format.
DivX, Inc. and movie site Film Fresh on Wednesday announced that Film Fresh will offer titles such as The Da Vinci Code; Spider-Man; Reservoir Dogs; Crouching Tiger, Hidden Dragon; Religulous and the Harry Potter franchise in the “download-to-own” DivX format, beginning today.
The move marks the first time the major Hollywood studios are linking up with DivX to offer their films, which can be viewed on DivX-certified digital TVs, Blu-ray players, Sony’s PlayStation 3, and phones from LG, Philips and Toshiba, among others.
But will it put Apple’s iTunes on high alert?
ZDNet sat down with DivX content services director John Greene, DivX technical architect Eric Grab and Film Fresh CEO Rick Bolton to discuss the move toward media-less movies.
August 25th, 2009
McAfee: Jessica Biel is the most dangerous celeb in cyberspace
Folks searching for Jessica Biel have a one in five chance of landing at a Website carrying online threats such as spyware, adware, viruses and malware, according to McAfee.
That gem of a finding comes from McAfee’s annual dangerous cyberceleb report (statement). Ban corporate searches on these folks and your enterprise may be a little more secure. Here are the full rankings for a little diversion:
August 24th, 2009
RealNetworks submits Rhapsody app to Apple
RealNetworks said Monday that it has submitted a Rhapsody app to for Apple approval. The move would bring a subscription music service to the iPhone and iPod touch.
In a blog post, RealNetworks said that it will submit the Rhapsody on-demand streaming music service for App Store approval. RealNetworks also plans to bring Rhapsody to the Android platform. The company also hinted it plans to “turn our sights on more mobile platform and carrier app stores.”
The natural question here is whether Apple will approve the Rhapsody app. Given the flap about Google Voice it’s a valid question. However, Apple has already approved a subscription music service app from Sirius XM. While the details are different, both services run you about the same a month—$15 or so.
Rhapsody on the iPhone reportedly won’t have offline capability yet.
Assuming Rhapsody is approved it will remain to be seen if the iPhone will generate additional subscribers for RealNetworks. Subscription music services make a lot of sense, but consumers generally prefer to download their tunes.
August 21st, 2009
Should Apple make its own TV?
There’s a good amount of buzz about a Piper Jaffray report handicapping a possible move by Apple to reinvigorate its Apple TV lineup and even enter the living room with a television set. Should Apple make its own TV?
The possibilities, outlined here by Sam Diaz, boil down to the following:
- Piper Jaffray analyst Gene Munster argues that Apple will launch a new Apple TV product with support for subscription iTunes services and digital video recording (DVR).
- This digital living room takeover revolves around iTunes, which will connect your TV with the iPod and iPhone.
- In the long run, Apple will manufacture a TV set that’s connected.
Thus far, Apple TV hasn’t been a runaway hit, but a retooling could work. The bigger issue is that your living room already has too many set-top boxes. That’s not going to change. And for a subscription iTunes service to work, Apple would have to cut carriage deals with a bevy of media players who are a suspicious bunch. We’ll also table the fact that Apple chief Steve Jobs has talked down subscription services at every turn.
The most intriguing idea here is Apple making a connected TV. Would enough consumers pay a premium for an Apple television set?
Munster argues:
Yes, TV hardware is a challenging business if you don’t change the rules of the game, but we see potential for Apple to offer best-in-class software and hardware and charge a premium. As of November 2008, 40 million US homes (35% of households) owned an HDTV, and the Leichtman Research Group estimates the number will double in the next four years. This equates to a US addressable market of 10 million units a year. The argument that Apple will not enter the television market because prices have declined by ~70% in the past three years is a similar argument used to conclude Apple would not enter the cell phone market, given phones had seen similar price declines. The bottom line, 10 million HDTV’s sold in the US a year is a real market, and if history repeats itself, Apple will find a way to compete in a commoditized market with a premium priced product.
It’s a solid argument, but color me skeptical. Apply the science behind Apple’s innovation. Would you make a TV?
August 19th, 2009
Time Warner, YouTube ink distribution pact
Time Warner and YouTube said Wednesday that they have signed an online video distribution deal.
Under the pact, YouTube will distribute Time Warner short-form video content, including movie clips, television shows and news. Time Warner properties—Warner Bros. and Turner Broadcasting System—will program YouTube videos via an embeddable player.
According to a statement (blog), YouTube will get access to CNN news, the Cartoon Network and shows such as Gossip Girl. Time Warner video will appear across Google properties. Time Warner can also create separate channels on YouTube and sell ad time. The two parties will split ad revenue.
Time Warner CEO Jeff Bewkes said the YouTube deal was a good way to monetize short-form content.
The deal appears to be a win-win. YouTube gets more professional content and Time Warner is allowed to sell ads and control channels.
Also see:
August 19th, 2009
Do video games really make you fat, depressed?
The headline du jour is that the average gamer is 35, depressed and fat. The reality may be a bit more nuanced.
MSNBC runs with a study conducted by the Centers for Disease Control and Prevention, Emory University and Andrews University. That trio analyzed survey data from 552 adults in the Seattle area. The study, published in the American Journal of Preventive Medicine, examined whether gamers were indeed fatter as measured by the body mass index.
While the MSNBC story covered the basics, it’s worth reading the full study. Was there a causal relationship between video games and being overweight and depressed? What other factors were considered? For instance, a gamer who ate his fruits and veggies while playing may be better off than the guy woofing down cheeseburgers.
Let’s roll the complete study (release, full study pdf, associated article). The last paragraph of the study puts things in proper context:
August 18th, 2009
CDs still sell: Who are these people?!?
Apple’s iTunes music juggernaut accounts for 25 percent of music sold. The rub: Sixty-five percent of you are still buying CDs for your music in the first half of 2009, according to research firm NPD.
The big question today: Who are these people still buying CDs? Sam Diaz notes even his dad has gone digital. NPD allays the digerati by noting that digital downloads will represent half of music sales by the end of 2010 (statement, Techmeme). Great, then we’ll all get to ask who is still buying CDs all over again.
So who are these CD lovers?
- They’re the same bunch still subscribing to AOL dial-up.
- They’re the same folks that still like albums.
- They’re the same people that read liner notes.
- They’re also a lot like me once in a while—People that would rather have the source material instead of screwing around with various formats (I also buy from Amazon’s MP3 store).
Among the notable NPD statistics:
August 12th, 2009
Court upholds RealDVD injunction; supports outdated laws and Hollywood business model
I have to admit that I am blown away by a judge’s decision to grant a preliminary injunction on sales of RealDVD, RealNetworks’ controversial software that allows consumers to rip DVD movies into a computer much the same way that CDs can be ripped.
Even though I didn’t like it, I understood why Judge Marilyn Hall Patel agreed back in October to grant a temporary restraining order against RealDVD. She wanted to review the facts of the case and discover what I’ve been saying for some time: the Motion Picture Association of America - which is representing the Hollywood studios - is using this case to stifle innovation, preserve an outdated business model and keep consumers from fair use of products that they own.
Now, the Wall Street Journal reports that the judge granted the studios a preliminary injunction, pending a full trial - which isn’t expected to begin for another year or two. In her 57-page ruling, quoted in the WSJ, the judge weighed issues such as fair use in her decision. According to an AP report, the judge said that RealNetworks failed to show that the RealDVD products are to be used by consumers primarily for legitimate purposes. She wrote:
The court appreciates Real’s argument that a consumer has a right to make a backup copy of a DVD for their own personal use… While it may well be fair use for an individual consumer to store a backup copy of a personally-owned DVD on that individual’s computer, a federal law has nonetheless made it illegal to manufacture or traffic in a device or tool that permits a consumer to make such copies.
One might think that RealDVD is just a free-for-all piece of software that immediately enables consumers to rip, burn and resell copies of the DVDs. But that’s not what the software does. RealDVD was supposed to address concerns about piracy because the software preserved encryption to block widespread distribution and digital rights management software to restrict what could be done with the content.
The MPAA - and the courts - make an assumption that consumers could abuse the software and find ways around its restrictions to pirate movies. I hate to break it to anyone, but movie piracy is alive and well - even without RealDVD. To punish honest consumers who could use the software for its intended use just because others might - repeat, might - misuse it is just plain wrong.
Also see: RealDVD hearing: Don’t block the software because of what-ifs
Sam Diaz is a senior editor at ZDNet. See his full profile and disclosure of his industry affiliations.
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