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Sony Connected TVs to Get Ensequence Technology for Contextual Content

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December 6, 2012
  • The same company that brought enhanced NBCUniversal London Olympics content to Verizon FiOS TV customers is teaming up with Sony to provide contextual content for connected TVs.
  • Ensequence has signed a multi-year deal with Sony to create software for connected TVs using the automatic content recognition technology in Sony’s devices. Starting next year, all TV sets will have the software; additionally, the technology will be available to TVs made by Sony in 2011 and 2012 through a software update.
  • “The collaboration offers advertisers and programmers an easier, more scalable way to engage viewers directly with TV ads and shows, transforming passive viewing into active participation,” the press release states.
  • “Ensequence research shows that adding interactivity to TV increases programming ratings by up to 20 percent, brand recall by as much as 50 percent and intent to purchase by up to 40 percent,” notes the release. “In addition, viewer interaction and repeat visit rates exceed 30 percent and 50 percent respectively.”
  • Using the platform, advertisers can add clickable banners, landing pages, product request forms, coupons and surveys. TV show producers can also incorporate polls, trivia games, photo galleries, location-based check-in, social status updates and more.

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

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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.”

Steam Takes on the Console Competition with Launch of Big Picture Mode

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December 6, 2012
  • In a challenge to console makers, Valve has officially launched its “Big Picture Mode” for its cloud-gaming platform Steam, enabling users to play titles on their televisions by simply connecting their computers.
  • “Steam has been offering its users the option to put the service on their television since September in beta mode,” the Washington Post reports, “but the company has deemed it ready to lose that testing tag. The mode makes it possible to use almost all of Steam’s features including its Web browser, social network and — of course — its games in a way optimized for television screens.”
  • To promote the new mode, Steam has put the compatible games on sale. “All the sale titles have full controller support, which means that users won’t have to tote their mouse and keyboard to the living room,” the article notes.
  • “There are also quite a few partial support titles, such as ‘XCOM Enemy Unknown,’ ‘Hitman: Absolution,’ and ‘Call of Duty: Black Ops 2.’ Steam is very clear about which titles have full support and which do not,” explains the article. “Titles with partial support may need the keyboard and mouse during installation or for ‘limited interactions’ throughout the game.”
  • Because Valve has established itself in the gaming community, the company could move further into the console territory currently dominated by Microsoft, Sony and Nintendo. “Some see this step into the living room as a test for bigger things in the future,” the article suggests.

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

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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.”

The Future of Gaming May Be Tablets from Amazon, Apple and Google

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December 5, 2012
  • Nintendo sold an estimated 400,000 Wii U consoles on Black Friday and Cyber Monday. Rivals Microsoft and Sony are also expected to release new iterations of their popular video game consoles in the new year.
  • But even with strong launches, the new consoles “represent a rapidly decaying ecosystem,” writes Fortune contributor Kevin Chou.
  • “The eighth generation of game consoles we will see in the next 12 months will, over their life spans, sell in lower quantities than the generation that preceded them. That will be a first,” says Chou, who is the CEO of game maker Kabam. “The best guess, both from inside our company and from industry analysts, is the fall-off will be more than 30 percent. Much of the decline will be in the out years of sales, after the most loyal fans have snapped up early units.”
  • “If this happens, there will be a one-word explanation: tablets,” Chou continues. “There can be little doubt that tablets from the likes of Amazon, Apple, and Google are the new consoles.”
  • The typical gaming console release schedule is between five to seven years. Tablets, on the other hand, can be released every year as technology improves. Already, the latest iPad from Apple has a more powerful graphics processing unit than that of the new Wii U.
  • Also, the consumer behavior toward software has changed. Rather than coughing up $60 for a new game, customers are opting for freemium games on tablets and smartphones.
  • “This will be doubly true as more software companies adopt the iterate-and-improve development model of the tablet makers,” the post states. Rather than monetize customers up front, developers are drawing in consumers who will pay for updates over several years.
  • Lastly, gamers want convenience. Not only are tablets more portable, the sheer number of games available on mobile devices dwarfs that available on consoles.

Mobile Study Suggests Upgrade from 2G to 3G Helps Economies Grow

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December 5, 2012
  • Mobile phone networks have proven to help economies grow, but a new study found that increasing coverage from 2G to 3G also has a notable impact.
  • “By increasing the flow of information, mobile phones improve productivity and efficiency, and open up new markets and new kinds of business all across the economy,” Quartz writes. “Now there is evidence that improving mobile Internet access helps economies, too.”
  • “The study by the GSM Association mobile trade group, Deloitte and Cisco, looked at 96 developed and developing markets from 2008 to 2011,” the article explains. “When a market experienced a 10 percent shift from 2G to 3G, GDP per capita growth increased by an average of 0.15 percentage points. A separate look into 14 countries between 2005 to 2010 found that a doubling of mobile data use led to an increase of 0.5 percentage points in per capita growth.”
  • “The fact that increasing high-speed mobile broadband data usage leads to greater average per capita income underscores the need for increased investment in wireless networks as well as for government policies to foster that investment,” says Dr. Robert Pepper, Cisco’s vice president of global technology policy.
  • Quartz qualifies the study’s conclusions, noting “the study’s sponsors have an obvious interest in promoting any evidence of a societal payoff from expensive wireless network upgrades.”
  • Today, 18 percent of all mobile subscribers use 3G, amounting to 1 billion global users, which is an increase of more than one-third over last year.

Online Retailers Compete with Amazon by Offering Same-Day Delivery

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December 5, 2012
  • In select cities, same-day delivery is becoming more common as companies such as eBay and Walmart try to gain a competitive edge in online sales by sending out delivery couriers.
  • “Driving this proliferation is the desire to give consumers instant gratification with their online orders to drive sales, as well as giving customers another incentive to skip lines at their local retailer,” reports the Wall Street Journal. “Many of the companies are hoping to compete with Amazon, which has built a reputation for speedy, low-cost deliveries through its network of sprawling warehouses.”
  • For the eBay Now same-day delivery service, eBay hires people for $12.50 per hour to drive around San Francisco and New York, picking up products and delivering them to customers. The company only charges users $5 per delivery with a minimum order of $25. The company also offered a promotion that delivers the first three orders for free and adds a $15 credit to the first delivery.
  • Similarly, Walmart offers same-day delivery for $5 to $10, and the company is looking to expand into new markets next year.
  • The promising same-day shipping initiative Kozmo.com, which drew venture capital interest and a $60 million investment from Amazon during the dot-com boom, fell in 2001 after trying to spread to too many markets too fast.
  • “If we learned one thing, you have to take a careful approach to this, roll it out slowly and study the markets you go into first,” says Joseph Park, one of Kozmo’s co-founders who is now chief executive of online fashion retailer Bluefly.
  • For the time being, same-day delivery will be a money-losing venture, no matter how many companies join in.
  • “Retailers are clearly subsidizing this service to improve the customer experience,” says Needham & Co. analyst Kerry Rice. “Amazon created this monster and everyone has had to jump on board to compete.”

Toon Boom: How AMPAS Views the Influx of Animated Film Submissions

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December 5, 2012
  • While computer animation may lead to tremendous box office success, it may not lead to Oscar success, as the Academy has proven it considers not only beauty and technical advances, but the traditional art of hand drawing.
  • Bill Kroyer, a governor on the Academy short films and feature animation branch told Variety that “a lot of the older members have a real hunger for what they consider to be art in animation. Anything hand-drawn and hand-painted immediately has an impressionistic, very unpredictable quality to it that makes it very difficult to come up with a computer film to which audiences will respond in the same visceral way.”
  • But while the Academy loves traditionally hand drawn films, it has also proven it loves stop-motion films. This is relevant this year as “Frankenweenie,” “ParaNorman,” and “Pirates!” all fit into this category. The Academy has traditionally loved stop-animation because the frame-by-frame hand manipulation is sometimes seen as even more artistic than hand drawing.
  • There have been more animated film submissions than ever this year, with 21 films vying for just five spots, notes Variety.
  • And while CG may dominate among the big screen feature films this year, there are also 56 animated shorts that represent “unbelievable quality and unbelievable variety,” says Kroyer. “Everybody thinks CG is going to take over. Not in short films. We have every medium you could think of, and the quality level is remarkable.”

The Fate of Photographic Film: Can Kodak Learn Lessons from Polaroid?

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December 5, 2012
  • According to The Washington Post, “few fields have experienced upheaval in the digital age as dramatic as the shake-up in photography.” Kodak and Polaroid, for example, two companies once atop the U.S. photographic film market, have both recently faced bankruptcy.
  • “At its peak in the late 1990s, Kodak sold about a billion rolls of film in the United States each year. Last year, it sold roughly 20 million. That’s a 98 percent drop in its core business over barely more than a decade,” notes the article.
  • Kodak filed for bankruptcy earlier this year and after nearly 125 years, it will most likely stop selling photographic film, putting its analog film division up for sale.
  • This sort of downfall already happened to Polaroid. It filed for bankruptcy in both 2001 and 2008. Whoever comes along to buy Kodak’s film business could learn from Polaroid’s fall.
  • The article suggests Kodak needs to be unafraid of raising prices, because even amidst a dwindling market, one still does exist for reasons of aesthetics over economy. It also needs to focus on the changing landscape of camera hardware and the intersection of the smartphone and midlevel camera.
  • Finally, Kodak must remain innovative and original, in as many ways as possible. Because while brand loyalty is working in its favor, it is not enough to keep it alive without those other factors.
  • For fans of Kodak film “and nearly everyone who cares about the photographic arts,” the hope is “that someone generous and deep-pocketed” will come along to pick up this iconic piece of Kodak.

Verizon Wireless Plans Targeted Ad Service that Leverages User Data

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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.

Targeted TV Ads in 2013: Platform Operators Want a Bigger Slice of the Pie

By
December 5, 2012
  • Targeted video ads will make their way into living rooms in 2013 as two of the UK’s largest TV operators plan to implement the strategy.
  • “Leading provider BSkyB will trial-launch an NDS Dynamic-powered service to seven million set top boxes under the AdSmart banner by the summer, allowing advertisers to target 90 different demographic attributes,” reports paidContent.
  • “When a break contains a Sky AdSmart instruction, a unique code is sent to all Sky+HD STBs at the precise moment selected in the schedule,” explains BSkyB. “Households with matching attributes will seamlessly trigger the playing of an appropriate ad for the circumstances.”
  • Ads are pushed via satellite dishes and are stored for later playback. “Some 500,000 of the 1.3 million Internet-connected boxes Sky has in the market will be used as a viewing panel, recording an ad impression when at least 75 percent of the ad is viewed,” according to the post.
  • For now, the ads will only appear on Sky’s own channels: Sky 1, Sky Sports, Sky Atlantic, Sky Movies, Sky Arts, Sky Living, Challenge and Pick TV. Cable operator Virgin Media also says it will start to roll out targeted TV ads, but details are not yet available.
  • “Further ‘targeted’ ad initiatives like these will need to prove both that they can target further than the conventional TV schedule, and work effortlessly, to trump the established paradigm,” notes the post. “These launches’ biggest impact could be to establish platform operators, not broadcast networks, as the more innovative ad targeters.”

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.

Hallmark is the Latest to Enter the Expanding Movie Streaming Business

By
December 5, 2012
  • Hallmark Instant Streaming is a new service that offers hundreds of Hallmark Hall of Fame titles at a lower cost than Netflix and other streaming services.
  • The Hallmark service is currently free for a week, and then will be available for $4.99 per month or $35.99 annually. While the price is far below Netflix, Hallmark does not have nearly the same library as Netflix.
  • “Hallmark Instant Streaming will also be available as an app on streaming devices via Roku, Boxee and iPad,” writes Variety. “Other content partners listed as part of Hallmark Instant Streaming include Bud Greenspan Films, Dale Carnegie Training, Odyssey Networks, Thomas Nelson Publishers, and Successories. No major studio partners are listed.”
  • The service also includes SpiritClips, a subscription service Hallmark acquired in March that offers “family-friendly short films, movies and documentaries,” notes the article.
  • Hallmark is entering a crowded market not only in terms of streaming services, but family-friendly streaming services, as Toys R Us recently announced its own service with a 4,000 movie library.

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.”

Vevo Claims to Pay Highest Royalty Rate of Any Music Video Service

By
December 4, 2012
  • Vevo has reportedly paid the highest royalty rate of any music video service, giving back $200 million in revenue to the music industry since being founded in 2009, explains The Hollywood Reporter.
  • According to Vevo president and CEO Rio Caraeff, “Vevo would pay more royalty revenues in 2012 than its first two years as a company combined — or $100 million, as he told Billboard earlier this year, with over $150 million in revenue in its second year in business,” THR reports.
  • “As artists and industry execs alike continue to criticize services like Spotify and Pandora for their royalty payments, the sums given back to artists on the short end of the very long tail of the Vevo spectrum appear to be significant at first,” the article continues.
  • Internet radio service Pandora reported that it would pay $10,000 to more than 2,000 artists in the coming year; 800 artists are expected to earn $50,000 or more.
  • These payments, however, don’t go directly to artists but are distributed by SoundExchange among sound recording owners and performing musicians.
  • “

So an artist like Drake, whom Pandora claimed would receive performance royalties of nearly $3 million a year, would only actually receive $1,278,450 as the performing artist, since SoundExchange distributes 45 percent of net royalties to the performing artist of the sound recording,” explains the article. “The label would get $1,562,550, as the owner of the recordings, and other musicians would receive $142,050, or 5 percent.”

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