Media analyst Bill Desowitz says that Digital Domain was a significant presence at last week’s VES Summit in Marina del Rey.
“Co-founder and former CEO Scott Ross implored the industry to get behind a trade association and stand up to the studios,” writes Desowitz, “while new CEO Ed Ulbrich discussed the reboot of DD 3.0, which he said was more like 1.0 so far.”
“The business is much too warm and cuddly,” noted Ross, suggesting the studios need to get tougher with directors and VFX companies should negotiate for better compensation. He does not believe now is the time for unionization, although he is not against the idea.
“Ulbrich said the recent bankruptcy and sale to Beijing Galloping and Horse and India’s Reliance has been a wild ride,” adds Desowitz. “They paired up like ‘Survivor’ and now DD has the capitalization to continue as a thriving VFX studio.”
Digital Domain may eventually open a facility in China. “We need to send people over there to help close the [talent] gap,” said Ulbrich. “Going to India allows us to mature in LA by scaling up with larger projects. India is part of the future of the VFX business.”
Desowitz explains that VES emphasized the intersection between creative and business concerns — with an additional focus on how social media is having an impact on decisions. He moderated a panel — “Is Television VFX the Future of Feature Film VFX?” — that addressed being productive with limited resources and leveraging globalization and virtual production.
“Meanwhile, Mary Ann Hughes, VP, Film and Television Production Planning, The Walt Disney Co., suggested that there are no standalone VFX incentives in California (indeed few in the U.S.) and that the problem with convincing legislators to create them is that they insist on proof that production would stay locally even with the incentives.”
Japanese cellphone and Internet company Softbank Corp. has been in talks regarding a substantial ownership stake in struggling U.S. wireless carrier Sprint Nextel Corp., the third largest cellphone company in the U.S.
“A deal would offer a multibillion-dollar lifeline that could help Sprint finance future mergers of its own and better compete with its much bigger and richer rivals,” reports the Wall Street Journal.
People familiar with the negotiations suggests Softbank is looking to purchase 70 percent of Sprint. The news sent Sprint shares on Thursday to their highest level since 2008.
Sprint has struggled since its merger with Nextel in 2005 and large investments including a costly network upgrade and its $15.5 billion commitment to carry the iPhone. (However, the iPhone deal has recently helped the company compete with contract customers.)
“There are a number of potential hurdles to a deal, including winning over Sprint’s shareholders and resolving a complex relationship between Sprint and partner Clearwire Corp.,” notes WSJ. “If the deal happens, however, it could transform a market where just two companies, Verizon Wireless and AT&T Inc., have the bulk of the customers and profits.”
The deal is expected to exceed $12.8 billion, although Softbank isn’t looking to buy Sprint outright. “Instead, the U.S. company is likely to get a multibillion-dollar cash infusion by selling new shares to Softbank, which would then seek to buy more stock in the market at a premium to the current price,” explains the article.
This would provide Sprint with financial relief immediately, potentially lead to network improvements or acquisitions, while allowing Softbank to “gain control of Sprint for a lower price than if it bought the company outright.”
Netflix CEO Reed Hastings will vacate his seat on Microsoft’s board of directors next month. Microsoft announced yesterday that Hastings has decided to not seek re-election at the company’s 2012 annual meeting of shareholders.
Hastings is currently the lead independent director on Microsoft’s Board. After he steps down, Microsoft will appoint his replacement.
“I’ve decided to reduce the number of boards I serve on, so that I can focus on Netflix and on my education work,” explained Hastings in a statement.
He also serves on the board of directors at Facebook, Netflix and some educational nonprofits.
“It makes sense for Hastings to focus on Netflix: The company has lost 80 percent of its value since last summer, when it unveiled a price hike and a plan, since abandoned to separate its online video-streaming and DVD rental businesses,” reports Business Insider.
Norton by Symantec has announced a new service designed to protect consumers when they connect to the Web using a public Wi-Fi network.
The new Norton Hotspot Privacy essentially creates a virtual private network for the user while on a Wi-Fi network, providing more control over what is shared online.
“The service provides a secure and private connection that shouldn’t be able to be seen by ‘eavesdropping software.’ The user’s Wi-Fi session should therefore be invisible, encrypting the user’s connection and everything related (i.e. usernames, passwords, etc.),” reports ZDNet.
“The inspiration behind Hotspot Privacy comes from the sheer amount of unprotected Wi-Fi hotspots available and just how vulnerable those networks are to cyber threats,” notes the post.
Available for Mac and PCs, Norton Hotspot Privacy supports unlimited bandwidth on up to five devices for $49.99/year, $19.99/month and $2.99/day.
Twitter is reportedly considering building its own video-hosting technology. This would allow Twitter users to upload video directly rather than using hosting services such as yFrog, TwitVid and Vodpod.
The company recently made a similar switch involving images. “Until recently, Twitter also delegated photo hosting to third-party services; Twitter moved that hosting in-house with the most recent app updates,” writes AllThingsD.
“This doesn’t mean Twitter expects users to start using its homegrown solution for the bulk of the videos people share of the service,” notes the article. “It still expects most people to post clips using links from sites like YouTube, Hulu and Vimeo.”
The switch could help Twitter refine its consistency and user experience in addition to offering more control while making tweets richer and more media-friendly.
The potential video initiative is not a done deal; however, a follow-up post from AllThingsD reports that Twitter has acquired New York-based, video-sharing startup Vine — in a deal that may or may not keep the three-man company as a standalone service.
The company, which has yet to launch publicly, specializes in very short video clips. According to its landing page, Vine is “the best way to capture and share video on your iPhone.”
“Vine allows for punctuated recording,” explains AllThingsD. “Grab a few quick snips of video, and Vine auto-generates a longer cut stitched from those shots. It’s a novel idea, and hones in on the sweet spot of our ever-dwindling attention spans.”
The new Boxee TV set-top box — successor to the Boxee Box, originally released in 2010 — reportedly features DVR support, live TV broadcasting capability and Web apps.
The Verge has obtained photos of the new Boxee TV: “The new hardware (also manufactured by D-Link) sheds Boxee Box’s angled black cube in favor of a form factor that resembles competing products from Apple, Roku, and others.”
“Whereas the current Boxee Box requires a separately-sold dongle to watch live television, the new box carries a TV tuner (complete with coax input) right inside its matte black casing — an external antenna is also said to be included,” notes the post.
“It’s here that Boxee seems to be launching a full-scale assault against the traditional cable model, imploring users to ‘watch more free TV’ and ‘stop spending money on stuff you don’t watch’ on the device’s packaging.”
According to The Verge‘s anonymous source, Boxee has included DVR functionality that will allow users to watch content across multiple devices, possible via its own companion app.
The new hardware also takes into consideration personal media libraries by including network streaming abilities.
However, Boxee TV may not be quite ready for prime time. “Our source says the software routinely crashes several times a day and that Boxee plans numerous updates down the line to refine the user experience before any public unveiling,” concludes the post.
Cloud-based movie locker system UltraViolet has yet to significantly gain traction with consumers.
“The reasons are varied: UV-compatible movies have trickled out; the number of UV-compatible sites and devices are few,” reports CNET.
“A much-heralded relationship between UV and Walmart, which agreed to store movies in customers’ UV lockers provided they haul their DVD or Blu-ray discs and pay as much as $5 a disc, was a non-starter for many,” adds the post.
However, early adopters are now ramping up initiatives involving UV-enabled films.
Paramount Pictures, Barnes & Noble and 20th Century Fox have expanded their UV libraries through rights deals and service launches to target consumers looking for low-cost alternatives to DVDs and early access to new releases.
Paramount has signed a deal with Flixster, B&N launched Nook Video, and last month Fox announced it will offer Ridley Scott’s “Prometheus” online three weeks before it’s available via disc or VOD.
“Let’s hope the other studios follow Fox’s lead,” comments CNET. “Consumers want earlier access to new releases, they want lower prices, and they don’t want them tied to DVDs.”
Best Buy’s Geek Squad is expanding to offer its tech-support service on eBay while also running a pilot program at 28 Target stores in Denver and one in Minneapolis.
The 24/7 Geek Squad support offered on eBay includes service plans that cost $30 for three months and $50 for six months.
Expanding the Geek Squad, the struggling electronics chain’s best-known brand, “fits with their strategy to deliver a connected experience to consumers,” explains NPD Group analyst Stephen Baker. “They’re trying to make Geek Squad a ubiquitous, stand-alone brand that stands for great help around your technical problems.”
Customer service is a major strategy in Best Buy’s plans to revive sales and better compete with rivals such as Amazon.
“Best Buy boosted U.S. revenue from services 6 percent in the quarter ended August 4 as comparable-store sales sank 3.2 percent, the eighth decline in the past nine quarters,” reports Bloomberg.
The company also plans to close 50 big-box stores and open smaller shops that offer primarily mobile phones, e-readers and tablets. Best Buy has experienced strong sales in those categories while TV and PC purchases have declined.
“Geek Squad was founded 18 years ago by Robert Stephens, who rode around Minneapolis on his bicycle, helping people with technology problems,” notes Bloomberg. “He sold the company to Best Buy in 2002, when he had 65 agents. He still serves as a consultant to the retailer.”
LG Electronics will announce a Google Nexus smartphone at the end of October with a modified version of the South Korean phone maker’s Optimus G handset.
The new phone is expected to feature Qualcomm’s Snapdragon quad-core processor, 2GB of RAM, a 1,280 x 768 HD IPS display and an 8-megapixel camera. The companies have yet to name the device.
“A Nexus phone could do wonders for LG’s reputation, particularly in the U.S., where the company has struggled to make a name for itself with its smartphones,” reports CNET. “The Nexus devices are used to showcase the latest version of Android, in this case Android 4.2, and often generate buzz in the Android community for the device and handset manufacturer.”
LG may not be the only company to launch a Nexus phone as multiple handset manufacturers will reportedly also have the opportunity.
Samsung built the Nexus S and Galaxy Nexus smartphones, Asus helped with the Nexus 7 tablet and HTC built the original Nexus One.
“The move could be a way to give some of the other handset players a leg up and earlier access to the latest iteration of Android. While Samsung has been tremendously successful with its Galaxy franchise, and its flagship Galaxy S3 in particular, the rest of the Android pack hasn’t fared as well,” suggests CNET.
Acer’s new Iconia W700 Windows 8-powered tablet — featuring an Intel Core processor — will sell for $799 when it goes on sale the end of this month.
The W700 will feature an 11.6-inch screen with 1,920 x 1,080 pixel resolution. The tablet is a mere 0.5-inches thick and weighs only 1.04 kilograms. Acer sees it as a replacement device for traditional laptops.
The tablet is expected to compete with the new Microsoft Surface, which will feature an Intel Core processor and Windows 8 Pro. Asustek is also expected to launch a Windows 8 tablet with a Core processor.
In related tablet news, Reuters reports that Sony has recalled its Xperia tablet one month after its launch due to potential water damage that can be caused by gaps between the screen and the case. The Android tablet was originally touted as being water resistant.
“So far [Sony] has shipped around 100,000 of the devices,” notes the post. “The company said it will fix any of the tablets sold and expects the cost of the recall to have no significant impact on earnings.”
Dish Network has dropped its plan to convert Blockbuster into a streaming service and use the chain’s stores to sell mobile devices, according to Dish founder and chairman Charlie Ergen. The company, which acquired the video-rental chain out of bankruptcy in April 2011 for $320 million, plans to close more underperforming Blockbuster stores.
However, some of the stores still turn a profit renting DVDs in rural regions. About 900 stores remained open in the U.S. as of August after Dish shuttered some 500 locations.
Ergen’s streaming plans changed when the regulatory approval process for radio wave licenses was dragged out.
“Ergen’s airwaves, which Dish agreed last year to purchase from DBSD North America Inc. and TerreStar Networks Inc. for about $3 billion, require new handset devices with a chip that links the satellite spectrum to terrestrial towers,” reports Bloomberg. “The government’s delay has caused Ergen to change his mind about selling those products in Blockbuster stores.”
Also not satisfied that Netflix will iron out an efficient business model with content providers, Dish no longer plans to use Blockbuster as a competing DVD-by-mail or streaming service. Dish had also considered working with Redbox, but those plans deteriorated when Verizon announced its partnership with Coinstar.
Dish launched Blockbuster@Home for renting DVDs and games, streaming movies to PCs and accessing more than 3,000 titles via TV. The company still has plans for Blockbuster, although they have not been made clear.
“Worst case, we’ll take our money after having wasted some time, not much money, and life goes on,” Ergen said.
Independent filmmakers that face competition from big budget Hollywood productions are increasingly turning to video-on-demand to augment — and in some cases, to exceed — theater revenues and reach a larger audience.
For example, the indie comedy “Bachelorette” recently earned a paltry $418,000 in theaters, but $5.5 million in VOD rentals. Other VOD hits include “Arbitrage” with Richard Gere and last year’s “Margin Call.”
According to some estimates, the number of movies that will simultaneously be released in theaters and VOD will grow 30 percent in 2012. The number had already doubled from 2009 to 2011.
“It has become harder to generate revenue from independent movies [in theaters] and VOD is our next best option,” says Kevin Iwashina, managing partner of film production and sales company Preferred Content. “This is how we’re putting a Band-Aid on our business.”
“Many filmmakers remain skeptical that VOD can bring them the same prestige, not to mention profits, as the big screen, where quality movies have always premiered,” notes the Los Angeles Times.
There is a perception by some that movies made for on-demand distribution are not of the same quality as theatrical releases. Also, most filmmakers do not intend for their movies to be viewed on a small screen.
“There are definitely still people who resist and say the only kind of deal they will do is a traditional release,” suggests Jason Janego, co-president of the Weinstein Co. unit Radius-TWC, that specializes in multi-platform releases. “We hope more people will become open-minded and realize the potential.”
It is no secret that the current presidential campaigns are leaning on social media more so than any other time in history. However, in addition to the obvious choices of Facebook and Twitter, the Obama and Romney campaigns are posting quirky clips to Tumblr and other sites in the hope of attracting younger voters.
“They are taking to fields of online battle that might seem obscure to the non-Internet-obsessed — sharing song playlists on Spotify, adding frosted pumpkin bread recipes to Pinterest and posting the candidates’ moments at home with the children on Instagram,” notes The New York Times.
The efforts are designed to reach younger voters who do not necessarily read the newspaper or watch TV, but spend much of their media time on the social Web. In the case of Tumblr, the interaction typically involves remixed photos, looping animated GIFs and funny videos.
“To remind Tumblr users about the first presidential debate… Obama’s team used an obscure clip of Lindsay Lohan saying ‘It’s October 3’ in the comedy ‘Mean Girls,'” explains the article. “And on Twitter, Mitt Romney’s bodyguard posted a picture of the candidate’s family playing Jenga before the debate.”
“The more people who interact with Mitt, the more likely he is to win,” suggests Zachary Moffatt, digital director for the Romney campaign. “Social extends and amplifies that.”
“It’s about authentic, two-way communication,” says Adam Fetcher, deputy press secretary for the Obama campaign. “Social media is a natural extension of our massive grass-roots organization.”
Conversely, unintentional gaffes or well-intended posts or pictures can lead to a negative impact with social media.
After Obama told a crowd “You didn’t build that” while discussing infrastructure, the Romney campaign uploaded photos of hot dog vendors and others with signs that played on the slogan: “I built this.” And Twitter and Tumblr were flooded with parodies of the empty chair used by Clint Eastwood during the Republican convention.
Last year, 3.4 million ultraslim PCs were shipped worldwide. Despite the slow adoption, NPD DisplaySearch predicts that number to dramatically increase to 65 million by 2015 (one-quarter of all mobile PC shipments).
The expected growth of devices including ultrabooks, Apple’s MacBook Air and MacBook Pro with retina display will be sparked by reduced prices and the devices’ similar feel to tablets.
NPD DisplaySearch also predicts that tablet shipments will exceed notebooks by 2016.
“Tablet PCs have offered consumers what they have been requesting from the notebook market for years, instant-on activation, long battery life, and sleeker designs,” notes Richard Shim, senior analyst with NPD DisplaySearch. “These attributes are the basis for enabling greater and easier accessibility to content and services.”
“Ultraslim PCs are the notebook market’s response to tablets and aim to balance performance and convenience,” he says.
Roku and 3M have announced their Streaming Projector — a new Wi-Fi mini projector capable of 60 lumens, that features 800 x 480 pixel resolution and can expand to a 120-inch screen.
“Measuring 7.8 x 7 x 4.5 inches and weighing just a little under 1.5 pounds, the mini-Streaming Projector runs on the Roku Streaming Stick, which contains all your entertainment apps such as Netflix, Amazon Instant Video, Hulu Plus, ‘Angry Birds’ and more,” reports Digital Trends.
“You can also access the Channel Store to add more streams, such as CNBC — which will display the live channel as well as stock tickers and news headlines,” adds the post.
A separate $20 remote may appeal to those seeking an intuitive controller with built-in motion sensor (for example, those who want to play “Angry Birds” by projector). And the Streaming Stick is removable for those who want to connect HDMI ports from an Xbox or laptop.
The $300 wireless Streaming Projector has a rechargeable battery and built-in stereo system. It will ship on October 22.
“The entire device is essentially the Roku 2 XS, the company’s top-of-the-line media center, now with a built-in projector capacity,” notes the post.
