Dish Network Makes Software Upgrades to AutoHop During Legal Battle

  • New software upgrades to Dish Network’s controversial AutoHop DVR feature may bolster its legality and help position the company against the lawsuit brought on by broadcasters NBC, CBS and Fox.
  • “Dish has been quietly tweaking the functionality inside its multi-room DVR, dubbed the Hopper, which allows subscribers to skip over commercials in primetime broadcast series one day after being recorded on the device’s hard drive,” reports Variety.
  • Subscribers can now select which channels to record rather than to have all four major networks recorded automatically. They can now delete recordings at any time. And, most importantly, the default to skip ads is set to “no.”
  • “While the changes may seem minor, they seem to represent a calculated strategy on Dish’s behalf to shift responsibility to viewers for the recording and ad-skipping rather than let them passively receive these features,” notes the article.
  • Shifting that responsibility could become a key component in assessing the legality of AutoHop, since a similar 2006 case has been cited as a possible precedent.
  • When content creators sued Cablevision regarding its remote-storage DVR, “the 2nd Circuit Court of Appeals upheld the legality in a decision that hinged on the degree to which the viewer had control over the technology.”

Social Media Olympics: NBC Digital Plans for the Summer Games

  • NBC has released additional details regarding its planned 3,500-plus hours of online summer Olympics coverage.
  • The Gold Zone video channel will automatically transfer viewers from a final in one sport to a live moment in another, with text commentary for each event.
  • NBC Olympics will work with Google+, Shazam, Instagram, Tumblr and GetGlue as social media partners. As previously reported, the network has announced deals with Facebook, Twitter, Adobe and YouTube.
  • NBCOlympics.com “will also include live streams of the Olympic content on four NBCU cable channels, rewinds of all the event coverage, news, highlights and athlete profiles,” reports Broadcasting & Cable.
  • “It will also feature multiple streams for certain sports, such as gymnastics or track and field that would allow the user to choose a stream dedicated to the long jump or javelin.”
  • Two apps developed by Adobe will provide digital coverage. The TV Everywhere app NBC Olympics Live Extra will feature live streams of all 32 sports for authenticated subscribers. Another, the NBC Olympics app, is offered to everyone, including those without a multichannel subscription.
  • “It has much less video content but includes groundbreaking ‘Primetime Companion’ features,” notes the article. “This will offer a variety of social media tools on Facebook and Twitter as well as trivia, polls, slideshows, videos and athlete bios that are synchronized to the live primetime coverage on NBC.”
  • We should expect to see an unprecedented amount of crossover between online social media and television broadcast coverage when the Olympics begin on Friday.

HBO Makes Clarification: Denies Possibility of Plans for Netflix Partnership

  • HBO has clarified that it is “not in discussions” with Netflix regarding a potential partnership.
  • The denial contradicts a statement from Reed Hastings, who had hinted that the companies may be ready to work together.
  • “HBO rushed to pour cold water on the possibilities that the Netflix CEO raised in a letter to shareholders, making it clear it had no intentions of making a deal with Hastings, who often singles out HBO as a chief competitor,” reports Reuters.
  • HBO offers original programming to its subscribers through the on-demand service HBO Go. Earlier this year, the channel opted not to sell DVDs of its shows to Netflix at the wholesale price it offers to retail operations.
  • “While we compete for content and viewing time with HBO, it is also possible we will find opportunities to work together — just as we do with other networks,” Hastings and CFO David Wells wrote in their letter.
  • Hastings told analysts the HBO reference was merely meant to highlight that “we’re just another network, and then when you have multiple networks, they often find ways of working together.”
  • “There is no current deal on the table,” he said.

Apple OS X: Mountain Lion Available for Download via the Mac App Store

  • The latest version of Apple OS X, Mountain Lion, just hit the App Store for $19.99.
  • “Of course, this round is download-only, so if you want to get your grubby paws on the desktop version of AirPlay Monitoring, Messages, Share Sheets and the rest of those 200+ features, this is the only way to do it,” comments Engadget.
  • Notable new features include: full iCloud integration, an all new Messages app (replacing iChat), the Notification Center, Facebook integration, Gatekeeper (for safer downloading), system updater Power Nap, and a faster Safari browser.
  • “People are going to love the new features in Mountain Lion and how easy it is to download and install from the Mac App Store,” said Philip Schiller, Apple’s senior VP of Worldwide Marketing. “With iCloud integration, Mountain Lion is even easier to set up, and your important information stays up to date across all your devices so you can keep editing documents, taking notes, creating reminders, and continue conversations whether you started on a Mac, iPhone or iPad.”
  • “Does Mountain Lion justify its $20 price tag? Yes. Of course it does. If you’re an OS X user with a reasonably new piece of hardware, stop what you’re doing and upgrade now. There are 200 features here — odds are you’re going to discover a couple you like,” notes Engadget in its extensive review.
  • “In our time with the new operating system, we experienced no major issues; just rare hiccups that can are likely to be fixed in a system update. Heck, even the installation went smoothly. Apple devotees will find a lot to like amid the long list of tweaks and new features.”

Mobile Search: Trapit Personalized Search Now Available for iPad

  • Trapit’s personalized Web search is now available for the iPad. Trapit launched in 2011 as a way for Internet users to customize Web searches in a Pandora-like style. Its free iPad version makes the most of touch interface design and personalization.
  • “Trapit was spun out of the same DARPA-funded project that spawned Siri, and uses the same AI technology, just applied to search discovery rather than a virtual personal assistant,” reports Digital Trends.
  • The review suggests that while Trapit works as a novelty as a browser app, it “really makes sense” for tablets and stands out based on its personalization and superior sources.
  • Trapit differentiates itself from other apps such as Flipboard and Zite that use social media to customize news feeds, by recognizing that users do not necessarily want to read what their Facebook friends are interested in.
  • As users read stories on Trapit, they can choose to save, share, or thumbs up/thumbs down the stories. This allows Trapit to personalize news based on the interests of the user rather than the interests of their friends. Additionally, Trapit pulls content from 120,000 sources (more than Google News).
  • Overall, the review notes a positive step for mobile search and personalization for tablets. “You’re kept within the Trapit app the entire time; links, video, photos, sharing — nothing will pop you out of the Trapit experience — a nice, fluid approach,” comments Digital Trends.

Advertising Efforts Will Be Judged When Facebook Releases Earnings

  • Thursday will be an important day for Facebook, when the company releases its first earnings numbers since going public.
  • “The stakes could not be higher,” suggests The New York Times. “Facebook made its initial public offering in May with an eye-poppingly high valuation, but its share price has stagnated since then. Advertising, largely in the United States, accounts for the bulk of its revenue, and the company is under intense pressure to show that it is growing fast enough to justify its high value.”
  • “Since the public offering, Wall Street has tempered its expectations for Facebook’s advertising revenue, and shares closed Friday at $28.76, down from their initial price of $38,” notes the article.
  • Facebook’s greatest asset is the personal data it collects from its 900 million users. However, Google takes in about $40 billion in annual revenue from advertising — 10 times Facebook’s current advertising numbers.
  • “Advertisers need more proof that actual advertising on Facebook offers a return on investment,” explains eMarketer analyst Debra Aho Williamson. “There is such disagreement over whether Facebook is the next big thing on the Internet or whether it’s going to fail miserably.”
  • The behavior-tracking Facebook Exchange and targeted banner advertisements on gaming site Zynga are among the social network’s latest efforts in this space.
  • “Orbitz, the travel company, is among the advertisers that are trying Facebook Exchange,” explains NYT. “If it sees a consumer looking for, say, a business hotel in New York, Orbitz can place an advertisement for New York hotels on that user’s Facebook page, with the hope that the user will return to the travel site and make the booking.”

Netflix May Not Reach Target of 7 Million New U.S. Customers This Year

  • In its Q2 2012 earnings report, Netflix reports that its subscriber base for domestic streaming is 23.94 million, up from the 23.41 million it reported for Q1.
  • As continues to be the trend, numbers are going up for streaming services and down for physical DVD rentals.
  • This is true for Netflix, which “added more than 530,000 domestic streaming subscribers in the quarter but reported a decline of 850,000 subscribers to its domestic DVD service,” according to CNET.
  • “While that means the total number of Netflix’s net U.S. subscriptions shrunk by 320,000, the company still managed to increase the number of U.S. subscribers by 420,000,” explains the article. “The difference between subscriptions and subscribers is that ‘unique subscribers’ counts people and not the types of accounts. So, for example, if people dropped their DVD subscription they might have remained as a streaming customer and weren’t counted among the ‘net new subscription additions.'”
  • Netflix CEO Reed Hastings has suggested that DVD subscriptions would drop. He’s right, of course, but “what’s shocking is that customers aren’t moving over to streaming at the same pace they’re dropping their DVD subscriptions,” notes the article.
  • According to CNET: “Netflix reported a profit of $6 million, or 11 cents per share, for the second quarter on revenue of $889 million,” marking a 91 percent decrease in profit from last year’s $68 million earnings.
  • “We have yet to see Hulu Plus or Amazon Prime Instant Video gain meaningful traction relative to our viewing hours, but as we continue to build a domestic profit stream they are likely to increase their efforts to gain viewing share,” says Hastings. “Redbox Instant by Verizon, once they launch, will face a big challenge to break into the top 3 of subscription streaming services.”

Redbox Instant by Verizon: New Streaming Service Enters Alpha Testing

  • Coinstar subsidiary Redbox is finally getting closer to making its streaming service a reality.
  • “In February the DVD vending company announced a partnership with Verizon that would finally usher the Walmart staple into the 21st century,” and provide a streaming option for customers, reports Engadget.
  • According to the press release: “The venture’s services will offer all of the convenience, simplicity and value of Redbox new release DVD and Blu-ray Disc rentals combined with a new content-rich video on-demand streaming and download service from Verizon.”
  • Sources indicate that “Redbox Instant by Verizon” will enter an internal alpha this week, meaning it will begin to test out and fine-tune the service. A beta program is expected in the coming months before the service goes live sometime later this year.
  • “For consumers eager to have an alternative to Netflix, Amazon, Hulu, and HBO Go, the news is bittersweet in its hurry-up-and-wait nature,” notes Fast Company in a related post. “Redbox Instant will be a subscription-based service, as executives at both Coinstar and Verizon have indicated, but the company will still not provide any insight into subscription rates, studio content, or how the physical and digital parts of the service will be combined.”
  • The joint venture will be managed by newly appointed CEO Shawn Strickland, who formerly served as a vice president for Verizon FiOS.

Consumer Protection: California Launches Group to Enforce Privacy Laws

  • Expanding upon its eCrime Unit founded in December 2011, California Attorney General Kamala Harris has announced the creation of the Privacy Enforcement and Protection Unit.
  • “The Privacy Unit will police the privacy practices of individuals and organizations to hold accountable those who misuse technology to invade the privacy of others,” explained Harris in a statement.
  • “The creation of the Privacy Enforcement and Protection Unit reflects growing concern among regulators at both a state and federal level that privacy in the information age hasn’t been adequately addressed,” reports InformationWeek.
  • “A series of online privacy controversies such as Google’s bypass of privacy controls in Apple’s Safari browser earlier this year and Apple’s compilation of unprotected location data on iPhones last year have piqued the interest of lawmakers,” adds the article.
  • The department aims to protect consumers by enforcing laws of online privacy, identity theft and data breaches — in addition to non-tech issues related to health, financial privacy and government records.
  • “Harris was responsible for working with Amazon, Apple, Facebook, Google, HP, Microsoft, and RIM to form an agreement earlier this year that requires app developers to include privacy policies in an effort to promote transparency,” reports The Verge.
  • “The Attorney General’s office will meet with these companies soon to ensure their compliance with the California’s Online Privacy Protection Act, and has said that the state will sue companies and developers who don’t take the policy seriously,” notes the post.

Harris Study Suggests 98 Percent of Americans Do Not Trust the Internet

  • Just how leery is the American public when it comes to information they read online?
  • A new study from Harris Interactive found that 98 percent of Americans do not trust information located on the Internet.
  • According to the survey of 1,900 respondents, 94 percent believe “bad things can happen as a result of acting on inaccurate information online.”
  • The top reasons for distrusting online content: too many ads (59 percent), outdated information (56 percent), self-promotional information (53 percent) and unfamiliar forums (45 percent).
  • “The 94 percent who worried that ‘bad things’ could happen were mostly concerned about wasting their time (67 percent),” notes Mashable. “Other fears included getting a computer virus (63 percent), losing money (51 percent), risk of fraud (51 percent) and damaging their credibility (36 percent).”

Brick-and-Mortar Stores at Crossroads: Is Showrooming the Future of Retail?

  • Consulting firm Capgemini reports that brick-and-mortar stores are finally realizing the importance of customer relationship management. A new study found that more than half of shoppers believe physical stores will serve solely as showrooms by 2020.
  • “According to the report, which was based on interviews with 16,000 consumers from 16 countries, 51 percent of respondents said that, in the next eight years, they expect retail locations to be showrooms for selecting and ordering products,” reports GigaOM. “In developing markets, the study said the percentages were higher but that at least one third of the respondents in more developed markets agreed with the assessment.”
  • In recent months, it has become clear that cost-conscious shoppers are leaning toward the “showrooming” trend — checking out new products in a store, but then making their purchases online where better deals and price comparisons are clicks away.
  • The growth of online shopping sites, mobile phones and shopping apps have led to new options for smart shoppers. “As more consumers reference their mobile phones in-store (52 percent according to a recent Pew study), many are realizing that they can find better prices or deals elsewhere, often online,” notes the post.
  • Some retailers are fighting the trend with new initiatives intended to keep customers happy. Retailers such as Walmart, Macy’s and Sears are increasing customer support with the implementation of payment booths, drive-through customer service centers, pickup locations and other services that blend online and offline.
  • Best Buy recently announced it will redesign its stores to become more Apple-like, including new features such as a product support center (similar to Apple’s Genius Bar) and the ability to pay from the floor rather than standing in line at the register.
  • “As the Capgemini report found, the digital shopper isn’t just digital and expects to be served seamlessly across all channels, physical and digital,” concludes GigaOM. “That goes for Amazon shoppers, too.”

Going Mobile: Olympic Fans to Follow Summer Games with Multiple Devices

  • According to a Harris Interactive survey, 44 percent of U.S. adults (18 to 44) plan to use at least two personal devices to follow the 2012 summer Olympic games.
  • About 14 percent say they plan to use three or more devices. Additionally, roughly one-third of those surveyed 55 and older will follow coverage on two or more devices.
  • “Audiences are taking advantage of the proliferation of tablet computers and handsets that surf the Web to complement their experience of televised sports and other programming,” reports Businessweek. “That is influencing how companies tailor the marketing messages as more consumers use social-media tools such as Facebook and Twitter to interact while they watch.”
  • Organizers are anticipating that as many as 4 billion people around the world will watch the London Olympics and Paralympic Games on TV.
  • “This survey reveals that a significant number of Americans are choosing to get their Olympic updates on the go, and while doing so, they’re overwhelmingly turning to mobile browsers,” says Krishna Subramanian of mobile marketing tech provider Velti.
  • The summer Olympics coverage is scheduled to begin Friday, July 27.

Survey: Netflix and YouTube Are the Top Apps Among Smart TV Owners

  • According to a study from Harris Interactive, Netflix and Google-owned YouTube are the leading “must-have” streaming-video apps among smart TV owners and also among those who don’t own an Internet-connected television.
  • The next most popular apps are Amazon Instant Video, Facebook and Pandora.
  • “The Harris Poll of 2,634 U.S. adults also found that about three-quarters of non-smart TV owners said they aren’t that familiar (39 percent) or not at all familiar (33 percent) with smart TVs or Internet-connected TVs,” notes Home Media Magazine.
  • Harris indicates that only 7 percent of those unfamiliar with smart TVs are considering to purchase a new set in the next year, whereas 29 percent of non-smart TV owners who are familiar with the device are likely to make a new purchase.
  • “As the TV becomes a more overall entertainment device, it is only a matter of time before we see the mainstream use of additional content apps, such as Facebook, being used on the TV,” suggests Manny Flores, SVP at Harris Interactive.
  • “Yet, manufacturers and retailers evidently have to do a much better job of educating their consumers on what a smart TV is and the benefits of a smart TV experience,” adds Flores. “Increased familiarity appears to be the key to driving purchase consideration.”

Vyclone: Collaborative Multi-Camera iPhone Videos Based on Location

  • Last week, ETCentric reported on the Ptch mobile app from DreamWorks Animation that enables users to create multimedia compositions and share them through social networks. This week we have a similar tool that leverages multiple “producers” based on their proximity to each other.
  • Vyclone is a new “social video creation, collaboration, and sharing app for the iPhone and iPod touch,” reports Mashable.
  • The free app enables multiple users within physical proximity of each other to create a collaborative video with multiple angles. Vyclone can even be used by others shooting iPhone videos who do not know each other or may not be aware the other people are recording video.
  • “Vyclone uses the GPS in your iPhone to determine your location,” notes the post. “If you’re recording a video with the app at the same time and place as another person, then the app will automatically edit together your two videos into one ultimate video mix. Bring four people together in the same spot and Vycone will combine all four video streams into a single synchronized mix.”
  • Completed videos can be shared with just the people you’ve linked to on Vyclone or everyone. They can also be shared on Facebook and Twitter.
  • The Vyclone site features sample videos created by early users.

Brainstorm Tech 2012: Industry Execs Discuss the Future of Entertainment

  • At the Fortune Brainstorm Tech conference in Aspen last week, panels addressed the future of entertainment.
  • “Neil Smit, president of Comcast Cable and Anne Sweeney, president of Disney/ABC Television Group talked about how the two organizations agree on a strategy for ‘TV Everywhere,’ letting Comcast subscribers receive Disney content on any device,” reports PC Magazine. “Most interestingly, it is a ten-year deal, even though technology may change a lot over that time.”
  • Smit pointed out that Comcast is working to make identification and authentication easier for consumers.
  • “As TV is now available on more platforms, the ratings have gone down but overall TV-watching is up,” explains the article. “Including video on demand does change how the content is viewed and this is impacting scheduling, Sweeney said.”
  • NBA commissioner David Stern and Turner Broadcasting CEO Phil Kent discussed how live sports and social media are evolving.
  • “Social media has been a big part of fan engagement for the NBA, Stern said. The personalities in the league have led to enormous interest and social media has given the opportunity for the community to be more interactive.”
  • Stern said that the NBA retains the rights to its games, but that in general, social media involving fan videos on YouTube is still great for the game. Kent added that anything driving fan engagement leads to increased viewership.
  • In a related Brainstorm Tech post from Fortune, Jason Hirschhorn, CEO of ReDEF Group, moderates a panel on TV Everywhere and the future of video across multiple platforms. The 58-minute video features Courtney Holt of Maker Studios, Alan Patricof of Greycroft Partners, David Rhodes of CBS News, Eric Solomon of Nielsen and Anthony Wood of Roku.