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Apple Expands the Worldwide Reach of iTunes Store to 119 Countries

By
December 6, 2012
  • Apple has announced the expansion of its iTunes platform into 56 new countries, including India, Russia, South Africa and Turkey.
  • The expansion, which nearly doubles iTunes’ worldwide footprint, is a response to growing competition in global markets from rivals including Microsoft, Google, Spotify and Netflix.
  • “But while competition is increasing, Apple still benefits from its vast reach,” reports the Wall Street Journal. “ITunes remains the juggernaut in the digital media world, with more than 400 million users and more than half the market for music downloads.”
  • With this expansion, the iTunes Store now reaches 119 countries, while the company’s App Store is available in 155 countries. The news comes on the heels of last week’s announcement that Apple has released the most significant update to iTunes since the software’s debut.
  • “However, Apple’s iTunes still doesn’t offer a streaming subscription service, an increasingly popular method of consuming both music and video by paying a fixed subscription every month, rather than buying individual songs, albums and films,” notes WSJ.
  • Apple faces competition from streaming service Netflix, Microsoft’s recently launched Xbox music, and the new Google Play online store that features Google’s entire media catalog.
  • “The expansion of the service to developing countries underscores Apple’s belief that these markets are ready for electronic distribution of media, and that Apple has sold enough iPhones, Macs and iPads on these markets to justify the effort, said Adrian Drury, media analyst at London-based research firm Ovum.”

Sony PS3 Now the Largest TV-Connected Platform for Netflix Streaming

By
December 6, 2012
  • It’s been three years since Sony introduced the Netflix streaming service to its PlayStation 3, and this week the two companies announced that the gaming system is the most popular option for consumers accessing the service in their living rooms.
  • “PS3 is our largest TV-connected platform in terms of Netflix viewing, and this year, at times, even surpassed the PC in hours of Netflix enjoyment to become our number one platform overall,” explains Netflix CEO Reed Hastings. “PS3 is a natural fit for Netflix in terms of developing and first deploying our most advanced features. We can transparently update our application with new features on a daily basis.”
  • Netflix often turns to the PS3 to test new features. For example, Sony’s console was the first to offer 1080p video with 5.1-channel Dolby Digital Plus surround sound from Netflix, the post play feature, second screen controls and subtitles.
  • “To this day, the PS3 provides next-generation Netflix options, such as the recent addition of a voice assistant (Max) that asks the user a series of questions to assist with the selection process,” reports CNET.
  • “The shift in favored devices comes a year and a half after Nielsen Research announced that computers and the Nintendo Wii held the top spot as a Netflix streaming device at home,” adds the post. “According to Nielsen’s 2011 research, more than 42 percent of those surveyed used a computer, 25 percent streamed through a Wii, and only 13 percent utilized a PS3 to view the service during that period. Things can sure change in a year.”

Activision Breaks Record as Call of Duty: Black Ops 2 Tops $1 Billion

By
December 6, 2012

Activision announced yesterday that “Call of Duty: Black Ops 2” beat its own record by earning $1 billion in just 15 days (last year’s “Call of Duty: Modern Warfare 3” reached $1 billion in 16 days).

“‘Black Ops 2’ earned $500 million in the first 24 hours,” reports PCMag. “Since its release, Activision reported that gamers have logged more than 150 million hours playing the game on Xbox Live and the PlayStation Network.” The game is currently available for the Xbox 360, PlayStation 3, Wii U and Windows PC.

“Last month, millions of fans descended on 16,000 midnight openings at retail store worldwide,” notes the post. “Within 24 hours, ‘Black Ops 2’ was a Twitter trending topic in 23 cities worldwide.”

According to Activision Blizzard CEO Bobby Kotick, the game’s release “has been one of the most significant entertainment events of each of the last six years.”

Since the “Call of Duty” franchise launched nine years ago, Kotick says cumulative worldwide revenues have exceeded the global box office numbers for the top 10 grossing films of 2012.

“This is an incredible milestone for an incredible franchise, and I want to thank every passionate, talented, committed person on our team who made it happen,” added Activision Publishing CEO Eric Hirshberg, who referred to “Call of Duty” as an “entertainment juggernaut.”

Verizon Wireless Plans Targeted Ad Service that Leverages User Data

By
December 5, 2012
  • Verizon Wireless has announced its new Verizon Selects program that will use location data as well as browser and app usage to create targeted ads and offer users coupons or promotions based on their interests.
  • “Subscribers will then get relevant offers via email, text message, standard mail, or through online and mobile advertisements,” reports The Verge.
  • The company says it will not share customer information with outside parties. However, its “Precision Market Insights program — of which the new program is a part — has recently come under fire for mining data from iOS and Android users,” notes the post.
  • In response, Verizon plans to only track users who opt-in to the program. The marketing initiative launches this week as Verizon Wireless contacts customers directly asking them to participate.
  • “Verizon Wireless will offer customers who opt-in to Verizon Selects a coupon or some other form of reward, most likely from a popular retailer, in exchange for their participation,” explains Verizon. “If a customer chooses not to opt-in, absolutely nothing about their relationship with us changes.”
  • “We are asking customers to opt-in to Verizon Selects because of the types of information being used and because the capabilities provided to third-party marketers gives them the ability to reach customers directly,” notes the company.

Netflix Takes on Pay TV and Streaming Competitors with Disney Deal

By
December 5, 2012
  • Netflix and The Walt Disney Co. have agreed to an exclusive licensing agreement that will enable Netflix users to stream movies from the Disney library.
  • “The deal means that if you want to watch a live-action or animated Disney film, you’ll only be able to do it on Netflix and not Amazon Prime or Hulu,” notes VentureBeat. “This is a huge win for hardcore Disney movie buffs, who until now could only purchase digital copies of Disney films or watch them on DVD/Blu-ray.”
  • The deal arrives in the wake of Disney’s announcement that it would shutter its Disney Movies Online service by the end of this year.
  • “Under terms of the agreement, Netflix will gain exclusive streaming rights to all Disney films that hit theaters in 2016,” notes the post. “And while Netflix is currently the only service to have streaming rights to old Disney film content, there was no indication that this will always be the case.”
  • According to the Netflix blog, the deal will include theatrical releases from Disney, Pixar and Marvel starting in 2016. “In the meantime, we’ll have an amazing selection of Disney movies including Disney classics, catalog movies, and popular non-theatrical movies for the whole family featuring beloved characters like Tinkerbell, Mickey Mouse and Winnie the Pooh, to name a few.”
  • Netflix’s Just for Kids section is adding titles such as “Dumbo,” “The Aristocats,” “Pocahontas” and “Beverly Hills Chihuahua” — while older viewers can look forward to movies including “Pirates of the Caribbean: Curse of the Black Pearl,” “The Sixth Sense,” “National Treasure,” “Phenomenon” and “Quiz Show” in the future.
  • “Disney is the biggest studio yet to make such an arrangement with Netflix,” reports the Wall Street Journal in a related article. “Netflix has struck deals with smaller entertainment companies, including Dreamworks Animation SKG Inc., Weinstein Co. and Relativity Media LLC.”
  • WSJ suggests that Netflix is “ready to rumble with traditional pay TV channels such as HBO and Showtime,” since it outbid Starz for the exclusive rights to offer Disney theatrical releases.

Blogging News: First Tumblr Analytics Dashboard Launches to Brands

By
December 4, 2012
  • Union Metrics recently launched the first analytics dashboard endorsed by blogging platform Tumblr.
  • “With Tumblr’s endorsement, it’s the next step for third-party developers to create new experiences for Tumblr users, as well as for the brands that are making money using the platform,” reports Digital Trends.
  • During the two month beta period, Union Metrics tested the analytics among 150 brands, companies and agencies. The company also has a Twitter analytics dashboard called TweetReach.
  • “The analytics service has been upgraded with brand new features including ad-hoc filtering and lists, which can track any blog or topic on Tumblr,” notes the post. “The platform, according to Union Metrics, is robust and tracks how posts are performing, the conversations around certain topics, as well as other features.”
  • The service will be offered at three tiers: $499 per month, $999 per month, or a negotiable fee for enterprise users.
  • “Tumblr is banking on third-party developers to nurture a community for the brand side of the platform,” writes Digital Trends. “With two advertising products to boot, including Tumblr Radar and Tumblr Spotlight, and a ‘Highlight’ feature to pin posts to the top of a follower’s feed for a small fee, this is where most of Tumblr’s revenue is coming from.”
  • “But judging from David Karp’s Uncubed panel from a couple of weeks ago, Tumblr is more concerned at this point with attracting a larger audience — especially brands.”

Taking on Cable: Netflix Plans to Launch More Original Programs Next Year

By
December 4, 2012
  • After releasing its first original series in February (“Lilyhammer,” starring Steven Van Zandt), streaming provider Netflix is getting ready to launch at least five new original programs in 2013.
  • In addition to David Fincher’s political drama “House of Cards,” starring Kevin Spacey and debuting in February, Netflix plans to launch the supernatural monster-mystery “Hemlock Grove,” the comedy “Derek” starring Ricky Gervais, “Orange is the New Black,” set in a women’s prison, and new episodes of “Arrested Development.” A second season of “Lilyhammer” is also scheduled.
  • Analysts suggest original programming will be vital to Netflix as it goes up against cable TV for subscribers, a plan that is challenged by budget limitations.
  • “While Netflix already competes against premium cable for viewing hours and subscribers, the push into original programming highlights the comparison,” notes the Wall Street Journal. “In addition to a lower price tag — $7.99 a month, against the $15 to $20 that consumers pay for HBO — Netflix offers an option outside traditional cable packages.”
  • However, while HBO remains relatively stable, Netflix’s model is in flux, due primarily to the shrinking of its high-margin DVD-by-mail business.
  • CEO Reed Hastings has said the company hopes to achieve 60 to 90 million U.S. streaming subscribers (Netflix reported 25.1 million at the end of the third quarter).
  • “HBO, Showtime and Starz all have less than 30 million domestic subscribers for their flagship channels,” notes WSJ. “For Netflix to hit its lofty targets, and become a real alternative to HBO, its new investment needs to yield some seriously buzz-worthy shows.”

Forced to Reduce Overhead, New York Times Seeks Manager Buyouts

By
December 4, 2012
  • In an effort to reduce overhead in an evolving and challenging advertising environment, The New York Times announced yesterday that it would offer buyout packages to certain newsroom employees.
  • “While the primary goal of the buyout program is to trim managers and other nonunion employees from its books, the company is offering employees represented by the Newspaper Guild the chance to volunteer for buyout packages as well,” explains The New York Times in an article about its own plans.
  • Jill Abramson, executive editor of the paper, explained in a letter to the staff that she was looking for 30 managers who are not union members to opt for buyout packages.
  • “She stressed that the paper had been reducing as many newsroom expenses as possible, like leases on foreign and national bureaus,” notes the article, adding that recent hiring has restored the newsroom to its 2003 size — about 1,150 employees.
  • “There is no getting around the hard news that the size of the newsroom staff must be reduced,” Abramson explained in the letter. “I hope the needed savings can be achieved through voluntary buyouts but if not, I will be forced to go to layoffs among the excluded staff,” she added.
  • “The newspaper industry as a whole is confronting a drastic falloff in advertising revenue,” notes the article. “Print advertising at The New York Times Company’s newspapers, which include The New York Times, The Boston Globe and The International Herald Tribune, shrank 10.9 percent, according to the latest earnings report. Digital advertising across the company fell 2.2 percent.”

New York Appeals Court Seems Skeptical About Aereo Television Service

By
December 4, 2012

A federal appeals court panel is skeptical whether streaming service Aereo has the right to retransmit broadcast television content without permission, but has yet to issue a decision. Three judges of the 2nd U.S. Circuit Court of Appeals appeared ready to reverse July’s lower court decision that reluctantly gave Aereo approval.

ABC, CBS, Fox and NBC are among the networks appealing the lower court judge’s decision that cited a Cablevision DVR case to allow Aereo to operate.

“Cablevision was a storage service, not a retransmission service,” says Bruce Keller, the networks’ attorney. “Aereo is a retransmission service by its own design. Without a license, it violates copyrights.” Paul Smith, another lawyer for the broadcasters, told the panel that the startup was trying to turn the Cablevision case “into a complete carte blanche where people can violate copyrights.”

Meanwhile, Aereo insists that it is complying with copyright laws and provides a legal, alternate platform for free TV broadcasts. Attorney R. David Hosp argued that Aereo lets customers “rent remotely located antennas to access content they could receive for free by installing the same equipment at home,” notes the Wall Street Journal.

“Aereo has grown from 100 users to more than 3,500 in the last year and has expanded from Apple devices such as the iPhone and iPad to devices including Windows computers,” reports WSJ. “It lets customers capture broadcasts from 29 local channels with subscriptions starting at $8 a month.”

Federal Judge Dismisses Sambreel Antitrust Case in Favor of Facebook

By
December 4, 2012
  • A federal judge has sided with Facebook against an adware company that attempted to use the site for its own purposes, ruling that the social network has the right to exclude users if they install a program designed to change the look of the site and swap ad offerings.
  • “In a ruling issued Thursday [November 29] in San Diego, U.S. District Judge Cathy Ann Bencivengo dismissed an antitrust complaint filed by Sambreel, a controversial advertising company that offers products with names like PageRage that let users tweak the look of their Facebook page,” reports GigaOM.
  • “The companies got in a bitter fight earlier this year after Facebook ‘gated’ users who had downloaded the Sambreel products — meaning the users had to remove PageRage software before they could log on to the social network,” notes the post.
  • In response, Sambreel launched an aggressive legal and PR campaign, accusing Facebook of violating antitrust laws.
  • However, according to Judge Bencivengo: “There is no fundamental right to use Facebook; users may only obtain a Facebook account upon agreement that they will comply with Facebook’s terms, which is unquestionably permissible under the antitrust laws. It follows, therefore, that Facebook is within its rights to require that its users disable certain products before using its website.”
  • “The ruling comes at a time of uncertainty over the degree to which large companies like Facebook, Google and Twitter can control their products,” notes GigaOM. “On one hand, these are private companies that provide a free service — meaning they should be able to do what they like. On the other hand, they have become like public utilities that people depend on for their communications and on which third party companies make their livelihood.”

Tourism Study Shows Consumers Relying on Social for Travel Decisions

By
December 3, 2012
  • According to a study on travel and tourism commissioned by Text 100, young travelers are increasingly turning to social media for destination recommendations.
  • The study, conducted by market researcher Redshift Research, surveyed 4,600 consumers from 13 countries and learned that 87 percent of those younger than 34 years of age actively use Facebook to solicit advice before booking their travel.
  • More than half of the survey respondents also reported using Pinterest, Twitter and other platforms for inspiration regarding potential travel.
  • “A consumer is not necessarily making a travel decision based on what a corporation, airline or destination says,” explains Text 100 CEO Aedhmar Hynes. “Your greatest ambassador is someone who has had that experience already.”
  • “The survey also found that 43 percent of respondents rely on travel blogger reviews to make decisions about trip activities and purchases,” reports PRWeek. “While on vacation, 68 percent use their mobile devices to stay in touch with friends and family, which means travel brands must react quickly to consumer concerns.”

At Long Last: The Reviews Are In for Anticipated iTunes 11 Release

By
December 3, 2012
  • Apple has released the newest version of its iTunes service, one month after the originally planned rollout. The company’s iTunes 11 is the biggest update to Apple’s media software since it debuted in 2001 as a simple music jukebox.
  • The service is now more integrated with Apple’s iCloud storage service and iTunes Store to make it more convenient for users to locate and access content on a variety of devices.
  • According to John Paczkowski writing for AllThingsD, “an iOS-inspired user interface… more elegantly incorporates the many elements that have been grafted and patchworked onto it over the years.”
  • “It’s far too early to say, as there are plenty of other tweaks and additions to play with here, but overall iTunes 11 looks like a pretty slick remodel of software that had been generally overburdened with unnecessary complexity,” notes Paczkowski. “It seems clear that Apple design guru Jony Ive played a prominent role in recasting the software.”
  • In a related review from Wired, Christina Bonnington writes: “For the most part, the new iTunes feels like the old iTunes. The experience is much faster though and has a decidedly more modern, streamlined user interface featuring flashy, colorful graphics.”
  • “Apple has trimmed a lot of fat, but with so much information to present and sort through, navigation can still feel a bit convoluted, especially compared to minimalist services like Rdio,” Bonnington writes.
  • “The one thing that would make iTunes killer in my book is if it adopted a simple cloud-based subscription service like Rdio and Spotify — along with those services’ equally simple interface,” she concludes.

Social Gaming: Facebook and Zynga Change Agreement, Draw Concerns

By
December 3, 2012
  • Facebook and social-gaming company Zynga have renegotiated the terms of their 2010 agreement.
  • “In a bid to become less reliant on Facebook, Zynga disclosed in a filing on Thursday that it has amended the terms of its relationship with the world’s largest social network so that it can now host its Web games outside of Facebook’s platform,” reports the Wall Street Journal.
  • “The new agreement also leaves the door open for Facebook to produce its own games and become a direct competitor to Zynga,” notes the article.
  • Under the new deal, Zynga will not be required to show Facebook ads on its game pages or to use Facebook credits for in-game payments. The game maker “can now seek other partners and offer games on its own portal, Zynga.com, without linking users to the Facebook platform.”
  • The news quickly led to a 12 percent plunge in Zynga’s stock to $2.30 in after-hours trading, while Facebook’s stock was relatively flat. Since its IPO in December 2011, Zynga’s shares have declined 74 percent, notes Businessweek in a related report.
  • Both companies quickly responded with statements explaining that the spirit of the partnership remains intact. “Our amended agreement with Facebook continues our long and successful partnership while also allowing us the flexibility to ensure the universal availability of our products and services,” stated Zynga chief revenue officer Barry Cottle.
  • “Zynga last year derived more than 90 percent of its revenue from Facebook. Meanwhile, Zynga made up about 12 percent of Facebook’s sales in 2011,” notes WSJ. “More recently, as Facebook’s gaming environment has grown more competitive, Zynga has struggled. In its most recently reported quarter, San Francisco-based Zynga posted a $52.7 million loss.”

Private Beta Tests Reveal Pricing and Launch Details of Redbox Instant

By
December 3, 2012
  • GigaOM has unveiled several exclusive details about the soon-to-launch Redbox Instant by Verizon, the “Netflix competitor with the complicated name.”
  • “The service will charge consumers as little as $6 per month, launch with apps for Android, iOS and Xbox 360 and open up as early as December 17,” explains the post.
  • The online video joint venture is currently being tested in private beta, and its exhaustive help section reportedly reveals interesting details and screenshots.
  • Assuming that the service doesn’t make any significant adjustments based on the testing, subscriptions will start at $6 per month, offering unlimited access to the service’s video catalog, which is expected to be smaller than the current Netflix collection.
  • “An $8 a month membership adds four Redbox credits to the streaming package that can be redeemed for Redbox DVD rentals,” notes the post. “Users will be able to reserve their DVDs from the Instant website and mobile apps. Credits won’t roll-over but expire at the end of each month.”
  • According to GigaOM, “Redbox Instant also offers VOD rentals and sales of newer titles, which can be downloaded to some devices for offline access. Rentals and sales start at $0.99, and offer access to titles like ‘The Lorax,’ which will presumably cost a bit more than that.”
  • Redbox Instant will use Silverlight for online streaming and will be available initially on Android and iOS devices, Xbox 360 and select Samsung TVs and Blu-ray players.

CES 2013: Sony Announces Ultra HD Video Player Loaded with 4K Movies

By
December 3, 2012

To help get consumers interested in its 84-inch 4K Ultra HD TV priced near $25,000, Sony will loan buyers a 4K Ultra HD Video Player preloaded with 10 feature films in 4K format. According to the press release, the films include “The Amazing Spiderman,” “Total Recall,” “Salt,” “Bad Teacher,” “Bridge Over the River Kwai,” and “Taxi Driver,” among others.

The Ultra HD Video Player is designed to be updated with additional 4K titles and video clips, says the company. The Sony system includes the 84-inch 4K LED TV and an Xperia Tablet S that serves as a remote control.

“As a standalone unit, the Sony XBR-84X900 TV already upscales all video inputs, including the more than 7,000 Blu-ray Disc titles currently in distribution, to a near-4K resolution through the use of Sony’s proprietary 4K X-Reality PRO three-chip picture engine,” notes the press release.

“While there are other 4K Ultra HDTVs arriving this year — and we expect to see many more at CES in January — at the moment, this is the only one with a content delivery system in place, to go along with its upscaling chops, and the only studio pushing content at this res so far,” reports Engadget.

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