Netflix is expected to face significant challenges in 2012, as its customer-satisfaction ratings have fallen below those of Amazon and new competitors continue to emerge with original video plans.
“There’s many more digital players that will command the attention of studios and consumers in 2012, from would-be Netflix rivals to those sporting entirely different business models and aiming to deliver TV programs and movies to every screen in U.S. homes,” reports Variety.
The success of the Netflix model has led to a new category known as subscription VOD, which is expected to spawn imitators. “Hulu, for one, built an SVOD component, Hulu Plus, off its massive ad-supported base that has nabbed 1 million subs in over a year,” notes the article. Both Netflix and Hulu have commissioned original content and continue to secure exclusives on catalog fare.
Amazon’s SVOD spinoff could present a challenge to Netflix, as Amazon Prime is also closing catalog deals. And Verizon “may enter the space in conjunction with Redbox.” We may also see SVOD models from Walmart’s Vudu and Dish Network’s Blockbuster.
The article cites the possible impact of a la carte digital rental options, such as iVOD offerings through Apple’s iTunes, and the one-off movie offerings Facebook has been testing.
Variety notes an additional possibility: “Microsoft’s Xbox Live was the first to try a third digital-distribution model for video that everyone from Verizon to Sony has been reported considering: the virtual MSO model, which bundles a bunch of linear channels akin to how a cable operator does, but with much fewer channels at a much lower price point. All the while, Xbox stays in the iVOD biz via its Zune marketplace.”
Analyst Nathan Safran, writing for Mashable, discusses the emerging shifts regarding the creation, delivery and consumption of visual media.
“Content creators make it, cable providers deliver it, and viewers consume it on the big screen in their living room,” he writes, in regards to the traditional model.
“In the last few years, however, we’ve seen a fundamental shift in the visual content landscape,” he explains. “For the first time since the advent of cable television in 1948, the lines are blurring as the quality of content created by non-prime networks — and even individuals — continues to improve. Plus, content increasingly reaches us over the Internet, consumed on whatever screen we happen to be in front of.”
Safran suggests this will have an impact on the rumored Apple television offering and what that might entail in terms of possible subscription packaging and licensing issues.
“Perhaps it’s time for Apple to get into the content creation business and license its own content. Imagine if the company approached a number of successful producers and convinced them to create an Apple series, for instance, ‘TV Series X by Steven Spielberg, exclusively on iTunes,’ or Quentin Tarantino, or Tom Hanks.”
However, Safran adds that the term “content creator” does not suggest that Apple will become the next Disney. He believes “content facilitator” is a more accurate term, “suggesting that Apple target other established, successful creators to generate compelling content that Apple would then exclusively distribute.”
Apple’s TV will still require participation from the usual content creators/owners, but if the company offers exclusive content, it may help drive hardware sales. According to Steve Rubel, EVP at Edelman: “Seems like Amazon and Apple are really opposites. Amazon uses devices to sell more content. Apple uses content to sell more devices.”
Samsung’s Galaxy Note, the 5.3-inch Android tablet/smartphone hybrid with stylus that Engadget calls an “unconventional powerhouse,” has shipped one million units in under just two months.
The phone has yet to arrive in the U.S., but European and Asian fans are already devouring it, which “bodes well for the device’s eventual reception in the U.S.,” reports Engadget.
“The rapid global sales of Galaxy Note are notable since it is creating a new market for something between smartphone and tablet PC,” suggests the company’s press release.
Digital Trends adds that rumors suggest the U.S. launch may include “a revised front panel with the traditional Galaxy home button removed, and the usual four-button Android layout instead, plus the potential for a 4G LTE model.”
We should expect to hear more about the Galaxy Note at CES in January.
ADR Studio has designed a new concept called the Apple iCam (tagline: “Photography becomes smart”), which builds upon the iPhone’s design and camera system.
“The iCam takes the minimalist design Apple is known for and adds an aluminum body, front touch screen, LED flash, Siri compatibility, and a front pico-projector,” reports Digital Trends.
According to the ADR Studio site, the 10.1 megapixel concept also features interchangeable lenses, a motion sensor, ISO range from 100 to 3200, full HD at 60 fps, and Bluetooth connectivity. The site includes a photo gallery and brief video demo.
“Not every great idea has to start in some company’s expensive R&D department,” comments Digital Trends. “ADR Studio seeks to do for the point and shoot camera what Apple has done with the mobile phone.”
In addition to demonstrating its 55-inch OLED TV at CES next month, LG has announced it will unveil an 84-inch Ultra Definition TV.
According to the press release: “LG’s 3D UD TV boasts superb picture quality with 8 million pixels, four times the resolution clarity (3840×2160) of existing Full HD TV panels.”
“The 3D UD TV will also feature 3D Depth Control to allow users to customize their viewing experience by controlling the 3D effect, and 3D Sound Zooming will give users immersive 3D sound,” reports Ubergizmo. The TV will have access to LG’s Smart TV ecosystem, feature a 2D-to-3D conversion engine and support the new Magic Remote.
As previously reported on ETCentric, LG’s Magic Remote recognizes four command inputs: Voice Recognition, Wheel, Magic Gesture and Point.
LG’s Smart TV ecosystem currently features more than “1,200 apps and gives users access to a growing range of premium content services such as the 3D Zone where viewers can select from a wealth of 3D movies,” adds the release.
The company has yet to announce price or release date for the prototype.
Five important developments will take place next year for Microsoft, predicts CNET senior writer Jay Greene.
“The company posted record revenue for the fiscal year that ended June 30,” writes Greene about Microsoft’s 2011. “And its 2-year-old PC operating system, Windows 7, hit 500 million copies sold… But 2011 had few big product launches at the company, Office 365 and Internet Explorer 9 notwithstanding.”
“Next year will be altogether different,” he suggests. “Microsoft is prepping the big kahuna of its product arsenal, Windows 8. The company hasn’t set a date, though most analysts expect the flagship operating system to debut before the end of the year… From that product, much else from Redmond flows.”
Worth watching in 2012: 1) The emergence of Windows 8-based tablet computers (“As the core of computing moves beyond the PC, Microsoft needs Windows 8 tablets to succeed”); 2) Increased live TV viewing on the Xbox 360 (“The company is moving toward the goal of getting consumers to fire up their Xbox whenever they flip on their TVs, not just when they want to play a game”); 3) A higher profile for the Windows Phone 7 OS; 4) Microsoft will become more aggressive with patent litigation (including suits against Barnes & Noble and Motorola); and 5) Integration of the Bing search engine with Facebook and other social platforms.
Digital Trends takes a look at the year in consumer electronics by publishing its Best of 2011 Awards.
The multi-section report features categories including: Digital Cameras, Headphones, Computers, Home Theater, Cell Phones, Tablets & eReaders.
“Smartphones now connect at 4G speeds, pack dual-core processors, and run two mature, fully featured operating systems, with a third still brewing,” reports Digital Trends. “Ultrabooks have taken the successful design elements pioneered by the MacBook Air and made them more affordable. A number of potent Android tablets have given the iPad a run for its money, and low-price introductions like Amazon’s outstanding Kindle Fire now sell for as low as $200. It’s a good time to be a geek.”
Best desktops and laptops of 2011: Apple MacBook Air (13-inch, $1,299 and up); HP Pavilion dm1z laptop ($400 and up); Origin Genesis with quad-core Intel processor ($1,337 and up); HP TouchSmart 610 with touchscreen ($1,350 and up); and the ASUS G74SX laptop ($1,449 and up).
And some of the other winners: Fujifilm Finepix X10 (under Digital Cameras), Sony XBR HX929 LED TV series (Best LED TV), Samsung D8000 series (Best Plasma TV), Samsung Galaxy Nexus and Apple iPhone 4S (under Cell Phones).
Digital Trends recently interviewed Silicon Valley’s most prominent firms regarding what tech categories are expected to stand out in 2012.
“If the venture capital community has anything to do with it, this time next year, you’ll be monitoring your blood pressure with your iPhone, recruiting helpers from the Web to help around the house, and automatically receiving coupons for free coffee at your destination the next time you board a train,” indicates the post.
According to the VCs, categories set to explode include Healthcare, Education Technology, Data Science and Big Data, Consumerization of the Enterprise, and Collaborative Consumption.
Healthcare-related companies to watch: Healthtap, Vertos Medical, Avado, Skimble, Patientslikeme and 23andme.
Education-related companies to watch: Khan Academy,Grockit, Piazza, Course Hero, Codecademy, Skillshare and Tutorspree.
Data-related companies to watch: Socrata, Palantir, Addepar, Hortonworks, CitusData and Relevvant.
Enterprise-related companies to watch: Evernote, Box, Socialcast, Survey Monkey, Yammer and Dropbox.
Collaboration-related companies to watch: Airbnb, GetAround, Rentcycle, Zipcar, Kickstarter and Task Rabbit.
Painter Loren Munk offers a compelling social media twist to the art world, posting hundreds of videos to YouTube that cover a wide range of New York museum and gallery shows.
Using the alias James Kalm, Munk once had a combative relationship with venues and security forces concerned about copyright infringement.
However, now that his videos have attracted about 2 million views, galleries are turning to him for free publicity.
“His videos — recognizable for their unseen narrator’s labored breathing, jerky camera work and informed but uncritical commentary — run about 10 minutes and are shot with a tiny Canon Elph digital camera,” reports The New York Times.
“Coverage of the art world is fading from the mainstream press, so I’m trying to use alternative media to fill the void,” explains Munk.
While recently recording some charcoal drawings by the painter Bob Thompson (who died in 1966 at age 28), Munk was spotted by artist Katherine Bradford. “He deserves a MacArthur grant for what he’s doing,” she said, adding that Munk had shot one of her shows in 2007. “Look at him,” Bradford said. “Bob Thompson’s been dead over 40 years, and here’s Loren doing him a favor.”
The migration from Internet Protocol version four (IPv4) to Internet Protocol version six (IPv6) has already been underway for over a decade, reports TVTechnology.
“The current system, which uses 32 bit IP addresses, is being replaced with a system that uses 128 bit IP addresses. IPv6 also uses a completely different packet header than IPv4,” indicates the article. “These differences mean that IPv4 devices cannot communicate with IPv6 websites and vice-versa. Fortunately, both protocols can work over existing Ethernet and other low-level networking technologies, so there is no need to replace the physical infrastructure of LANs or carrier networks.”
Content providers, including broadcasters that run websites, may one day need to address users who only have IPv6 addresses. “To support these users, many websites are employing a ‘dual-stack’ approach, where Web servers are configured to have interfaces for both IPv4 and IPv6 traffic.”
Additional challenges for broadcast facilities include “the added overhead of the larger IP packet headers,” and “the cost in both time and support fees that could be required to update and verify all of the specialized equipment used inside a broadcast facility, including video file servers and editing workstations.”
The transition to IP V6 will be like a slow Y2K event. It will enable major opportunities in tagging content and devices, but it will not be fully backward compatible with existing Web data, formats, and metadata.
DigiTimes reports there may not be many new innovations revealed at CES 2012 and, as a result, the show may do little to pump up consumer demand.
Samsung, Microsoft and Intel are expected to provide the highlights of next month’s convention. However, Samsung will likely outshine the other two as Microsoft is only expected to release Windows 8 and Intel will only preview the Ivy Bridge processor.
“Since there are not many new surprising products showing up at the show, some notebook vendors are concerned that the show’s weak morale may not provide much help to attract consumers to purchase IT products afterward,” the article states.
In a related commentary posted on Digital Trends, analyst Rob Enderle asks: “Is CES even relevant anymore?”
Enderle suggests that “an overwhelming deluge of announcements, quickening release schedules and the rise of Apple have all made CES less and less relevant,” and unless something changes, the show may eventually go the way of Comdex.
Although the show remains popular, Enderle anticipates a decline, citing: 1) Large companies such as Apple are taking a product-driven approach to releases rather than event-driven, leveraging a timeline not reliant upon shows such as CES; 2) Timing has changed, and now that the market moves faster and is more tied to the fourth quarter, a January CES may become problematic; and 3) “CES remains a good place for parties and dinners” but less business is conducted, and the show is becoming more about prototypes and what we may see in the future.
“The 42nd fastest supercomputer on earth doesn’t exist,” reports Wired. “Except that it does.”
Confused? Wired explains how virtual servers may augment the possibilities of cloud computing.
“This fall, Amazon built a virtual supercomputer atop its Elastic Compute Cloud — a Web service that spins up virtual servers whenever you want them — and this nonexistent mega-machine outraced all but 41 of the world’s real supercomputers.”
The company’s worldwide network of data centers provides instant access to computing resources, “including not only virtual servers but virtual storage and all sorts of other services that can be accessed from any machine on the net.”
It also shows that “just about anyone can run a supercomputer-sized application without actually building a supercomputer.”
“If you wanted to spin up a ten or twenty thousand [processor] core cluster, you could do it with a single mouse click,” says Jason Stowe, the CEO of Cycle Computing, a firm that helps businesses run supercomputing applications atop EC2. “Fluid dynamics simulations. Molecular dynamics simulations. Financial analysis. Risk analysis. DNA sequencing. All of those things can run exceptionally well atop the [Amazon EC2 infrastructure].”
Instead of spending months and millions of dollars building a supercomputer, companies can get world-class computing performance for considerably less than the cost of building their own supercomputer. “Cycle Computing set up a virtual supercomputer for an unnamed pharmaceutical giant that spans 30,000 processor cores, and it cost $1,279 an hour,” according to the article.
Kumu Puri, senior exec with Accenture’s consumer electronics practice in San Francisco, has identified what she believes will be the top trends at next month’s CES.
“Microsoft will have a major role to play this time around; and as per usual, Apple will cast a giant shadow on the proceedings, though as usual it won’t be actually participating,” reports Forbes.
Puri’s anticipated trends include: 1) Ultrabooks, driven by Intel, which aim to compete with Apple’s MacBook Air; 2) Mobile devices, especially Android-based tablet computers and smartphones with mobile-payment systems and location-based services; 3) All sorts of connected devices, topped by automotive electronics, kitchen appliances and TV sets; 4) An increased focus on health care centered on the increased adoption of tablets in medical facilities, “cloud-based solutions for storing, archiving, accessing and retrieving medical records,” and new consumer medical devices, including apps and dedicated gizmos; and 5) Microsoft’s Windows 8 operating system and “a variety of new Windows Phone-based mobile devices.”
Shawn DuBravac, chief economist and director of research for the Consumer Electronics Association, discusses the popularity of phones and tablets in 2011 and offers some predictions for 2012.
“The driving theme for 2012 will be ubiquitous connectivity,” he writes. “This will influence every consumer tech category.”
“2011 marked an important inflection point for consumer technologies: purchases of smartphones and tablets together surpassed the sales of all traditional computing devices combined, including netbooks, notebooks, desktops and all-in-ones,” points out DuBravac. “Worldwide in 2012, smartphones will outsell all computer categories combined.”
DuBravac suggests 2011 saw improvements in the consumer tech sector, despite the overall economic landscape. “It will be a long time (read: potentially never) before we return to high double-digit year-over-year growth, but the industry has become well positioned to succeed with solid mid-single digit growth. I would argue the industry — inclusive of retailers and OEMs — is as efficient as it has ever been.”
LG has announced three new models of 3D glasses that will be available in 2012. “New CINEMA 3D TV glasses will convince more consumers that 3D doesn’t have to be uncomfortable or ugly,” suggests the press release.
The F310 weighs 20 percent less than the company’s default glasses from last year and is curved for a better fit, the F320 (designed by Alain Mikli) clips on for those who wear glasses, and the F360 feature half-rim frames.
“Compared to active shutter glasses, LG’s 3D glasses are far more comfortable to wear and much more affordable, making it possible for large groups and entire families to watch 3D programs and movies together,” claims Havis Kwon, president and CEO of LG Home Entertainment.
According to LG, all of its 3D glasses can be used in theaters showing 3D movies “since both CINEMA 3D and theaters utilize the same FPR and RealD technologies.”
The company also announced new Smart TV features for 2012 in a separate press release, highlighting the new Magic Remote (with voice activation) and confirmation of Intel WiDi integration.
“We’re not seeing any Google TV tie-ins here, LG is focusing on its homegrown ecosystem which it says now offers 1,200 apps (of course, that probably includes the thousand or so recently added via its deal with Chumby),” reports Engadget. “There’s no word on pricing for the glasses, but after this and announcing a 55-inch OLED prototype, we’re wondering what else the Lucky Goldstar folks will have up their sleeves at CES.”
