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Facebook to Roll Out External Advertising Network Based on User Data

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November 29, 2012
  • According to recent changes to Facebook’s privacy and governance policies, the social network could soon leverage user data — namely likes and dislikes — to build an external advertising network.
  • This means Facebook would generate revenue by showing relevant advertisements on sites other than Facebook, similar to how Google makes billions of dollars every year.
  • “This is the first real confirmation that the company is going to roll out an advertising network that extends beyond just its own walled garden, and it could turn out to be one of the biggest factors in the success or failure of Facebook’s revenue-growth strategy,” reports GigaOM.
  • “Everything you do and say on Facebook can be used to serve you ads,” explained Chief Privacy Officer Erin Egan to Forbes back in May. “Our policy says that we can advertise services to you off of Facebook based on data we have on Facebook.”
  • An external advertising network could double Facebook’s revenues, bringing the company to $10 billion a year, suggests the article.
  • Facebook could begin its advertising endeavors on Instagram. After implementing the system on its own entities, it could then expand to external sites.
  • “Access to information about the browsing and liking habits of a billion people isn’t something that comes along every day,” notes the article, underscoring the potential of a Facebook-driven advertising entity.

Elastic Compute Cloud: How Amazon Unleashed the Power of Computing

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November 29, 2012
  • Amazon made a name for itself selling books and DVDs and has since become the world’s largest online retailer. But the company has also become a top player in the computing business, running as much as 1 percent of the Internet on its Amazon Web Services (AWS). The secret to Amazon’s success: offer services that customers will want to use.
  • Amazon created the Elastic Compute Cloud (EC2), which started as an experiment and evolved into “an Internet service that has completely changed the face of computing since it debuted a little over six years ago,” reports Wired. EC2 provides consumers instant access to unlimited computing power.
  • “With EC2, you can use all that computing power to run just about any software application you like,” the article explains. “Rather than loading your software on physical computer servers you’ve set up in a closet or a data center, you can load it onto virtual servers you’ve set up in your Web browser. And whenever you need more virtual servers, you can have them.”
  • “Part of the genius of EC2 is that it gave software developers virtual machines that behaved a lot like the physical machines they were familiar with,” the article continues. “They could run the same sort of software they had always used. Amazon didn’t try to tell the customer what he wanted.”
  • Google and Microsoft were quick to come up with competitors: the Google App Engine and Windows Azure. “The learning curve was steeper, and the public never really embraced them in the same way,” Wired says of the other services.
  • “Amazon is now well positioned to fend off the competition. [AWS CEO Andy] Jassy says that Amazon didn’t necessarily plan it this way, but EC2 and the other Amazon Web Services are businesses of low margins and high volume — the kind of businesses that Amazon knows better than anyone else trying to play the cloud game.”

Spectrum Crunch: Will New Technologies Sustain Wireless Data Demand?

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November 29, 2012
  • By 2016, mobile data traffic will grow by a factor of 18, according to Cisco, or by a factor of 25, if Bell Labs estimates are accurate.
  • The Federal Communications Commission and cellular providers have both warned of a “spectrum crunch,” which would mean diminished service and higher costs for consumers. But as Technology Review reports, the big crunch might not be for quite a few years.
  • “We don’t have a spectrum crunch so much as we have a spectrum policy crunch,” says David Tennenhouse, vice president of technology policy at Microsoft. “The so-called ‘spectrum crunch’ really reflects artificial spectrum scarcity.”
  • “Part of the problem is simply hoarding: some companies have rights to more than they need, at times because business models didn’t pan out,” Technology Review suggests. “There’s a great deal of idle government-controlled spectrum, too.”
  • “The FCC is designing auctions so that the TV industry can release some of its spectrum next year,” the article continues.
  • Despite the concern about scarcity, much of the crunch actually arises from how the spectrum is leveraged. “Capacity depends on how efficiently spectrum is actually used in different places and at different times,” notes the article. “And when wireless networks are overloaded, the real culprit may be inefficient use of existing spectrum rather than a fundamental shortage.”
  • Improved technology could alleviate much of the strain. Wi-Fi towers offload data from cellular networks. Cheap shorter-range small cells — transmitters and receivers handling frequencies used by 3G and 4G networks — can help. Also, data can be encoded more efficiently so more information can be translated.
  • “Right now, we have a 15- to 20-year backlog of new technologies and architectures, including sharing and small cells, which can take us a long way into the future,” says Tennenhouse.

YouTube Expands its Original Content Channels into Europe and Japan

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November 29, 2012
  • Following the early success of original content on its “channels,” YouTube has ramped up funding to produce more video. The Google-owned service is also expanding the channels overseas in the UK, Germany, France and now Japan.
  • “Google’s video guys aren’t talking about it openly yet,” AllThingsD reports, “but they’ll be replicating the same idea — YouTube advances programmers production money in exchange for exclusive content — with a handful of partners in Asia.”
  • One of the initial partners will be Vice Media, a video producer and ad agency that currently has three funded YouTube channels in the U.S.
  • Based in Brooklyn, the company “specializes in an edgy-but-not-too-edgy mix of youth- and sponsor-friendly content” and has recently attracted attention — positive and negative. Vice is expected to make $200 million this year.
  • In a related article, AllThingsD notes: “People familiar with the deals say that Google is likely handing out smaller advances to European programmers, because the video ad market pays out less than in America.”
  • The deals vary depending on market and content maker, but in general, Google offers interest-free advances for exclusive rights to the content. Once the company earns back the advance from ad revenue, the creators get a share of the ad profit.

OTT Video Views Continue to Increase, Streaming Catches Up to Satellite

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November 29, 2012
  • According to a survey from Accenture, about half of U.S. consumers currently view content via over-the-top devices such as Roku media players and game systems.
  • “Consumers are also viewing content on mobile devices, creating video playlists, posting videos on social media, and learning about new TV programs and video offerings through social networks,” reports MediaPost.
  • The survey notes that 27 percent of consumers subscribe to streaming services such as Netflix, a number which now rivals the 28 percent who have satellite subscriptions.
  • “We are seeing a seismic shift in consumer viewing habits,” notes Robin Murdoch, a managing director with Accenture’s Media & Entertainment industry group. “The connected consumer is now comfortable viewing TV shows and video on a variety of screens, as well as sharing opinions of that content via social channels or recommendation engines.”
  • Not surprisingly, younger viewers are leading the charge with OTT video and discovering new content through social networks rather than commercials or program guides.
  • “Domestically, 82 percent of consumers between the ages of 18 and 24 watch some OTT video, with 60 percent watching at least a quarter of their video over-the-top compared to 32 percent of U.S. consumers overall,” explains the article.
  • “The survey showed that 35 percent of 18-to-24 viewers are interested in social newsfeeds of videos that friends have watched, compared with 11 percent of consumers age 45+.”

New York First to Roll Out SmartScreens in 250 Public Phone Booths

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November 28, 2012
  • Some 250 New York City phone booths will soon feature large interactive touchscreens that provide local information and free Wi-Fi.
  • The first 10 opened around Union Square in Manhattan two days before Thanksgiving. New booths will be installed across New York’s five boroughs during the next few months.
  • “Cisco, which operates the new service in partnership with City24/7, said New York is the first city in the U.S. to have its public phone booths given the makeover, which involves the installation of large 32-inch touchscreens highlighting local news, local deals, entertainment listings and more,” reports Digital Trends.
  • “Information can also be fed from the so-called SmartScreens direct to a user’s smartphone,” notes the post.
  • “The new-look booths are equipped with a number of accessibility features, including screen repositioning for wheelchair accessibility and headphone access for the hearing impaired. Multiple languages are also available, including English, Spanish, Russian and Mandarin Chinese.”
  • Plans are underway to introduce the high-tech booths to additional U.S. cities and several international locations next year.

Will Camera-Outfitted Mannequins in Stores Raise Privacy Concerns?

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November 28, 2012
  • Some high-profile clothing store chains are reportedly using high-tech mannequins outfitted with small cameras to gain a better understanding of shoppers and passers-by.
  • “Benetton, for one, has started installing the EyeSee, created by Italian mannequin manufacturer Almax,” reports Digital Trends. “It’s been on sale for almost a year and is currently being used in stores in the U.S. and Europe. Up to now the technology, which uses face-recognition software, has been used in airports to help identify criminals.”
  • A camera embedded in one eye of the mannequin collects data to identify a shopper’s age, gender and race. Retailers can then use the information to cater store displays and product lines. Almax says one store featured children’s clothing after data indicated that kids comprised more than 50 percent of its visitors.
  • The company is reportedly working on a mannequin outfitted with a microphone to gain additional opinions from shoppers.
  • “Of course, most stores have a good number of security cameras dotted about — cameras which could utilize the same face-recognition technology — but incorporating the tech into mannequins should provide more accurate data as they’re positioned much closer to the passing consumer,” notes the post.
  • “It could really enhance the shopping experience, the product assortment, and help brands better understand their customers,” suggests Uché Okonkwo, executive director of strategy and management consultancy Luxe Corp.

Radical.fm Wants to Become Your All-In-One Streaming Music Service

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November 28, 2012
  • Radical.fm is entering the rapidly evolving music industry with a new business model: “A completely free-to-stream, ad-free, no-strings attached music streaming service that could stir up the digital music market’s dust yet again,” suggests Digital Trends.
  • Already launched in Sweden, Radical.fm bundles music services into a single package — “namely, it gathers your Spotify, Pandora, Slacker Radio, Last.fm, Rdio, and even YouTube accounts.”
  • It currently features a library of 22 million songs. Labels and musicians are paid the same way they are on other streaming services. Outside of Sweden, users only have access to music from indie record labels for now.
  • “The number of features that this one platform offers is dizzying, but should it prove to be successful it could be the music industry darling that revolutionizes the radio and music streaming industry,” notes the post.
  • CEO and founder Thomas McAlevey says he is in negotiations with “labels at the highest level” to offer the streaming service in the U.S.
  • “However if Radical.fm doesn’t ‘get the direct deals we want with the licenses in time,’ McAlevey could switch on its currently-dormant radio feature and broadcast the music from any rights holders that are hesitant to jump on board thanks to the SoundExchange license Radical.fm has obtained,” explains the post.

Facebook Gifts Now Allows Users to Purchase iTunes Credit for Friends

By
November 28, 2012
  • Customers can now purchase iTunes digital gift certificates on Facebook, deepening the Facebook-Apple alliance that formed with integrated Facebook features on iOS 6. Users can recommend what music, videos or apps to purchase with the gift certificates.
  • “What the actual revenue split is remains a secret,” reports TechCrunch. “We do know there’s no shipping costs for either partner to pay for, and Apple typically taxes content and app creators 30 percent to be sold in iTunes.”
  • The iOS 6 release brought Apple and Facebook together through Facebook sharing buttons and contacts integration. “If today’s integration is a success, it could create a virtuous loop where Facebookers buy iTunes credits for friends, who buy media or apps and share news of their purchases back to Facebook,” notes the post.
  • The partnership also provides more legitimacy to Facebook Gifts, which recently left its beta phase and launched for millions of Facebook users.
  • TechCrunch explains that the real money in Facebook Gifts would be if Facebook begins suggesting who to buy gift cards for, and for what. Facebook certainly has enough user data to know who frequently makes purchases on iTunes, and who uses Facebook iPhone applications, so this should not be a difficult step to implement.

CES 2013: Samsung to Possibly Unveil 4.99-inch 1080p Touchscreen

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November 28, 2012

Samsung may unveil its own smartphone-sized 1080p display during January’s CES in Las Vegas, on the heels of HTC’s Droid DNA. “Full high definition displays are all set to be next year’s must-have new smartphone feature, although their size will see them used on hardware that tips over into smartphone/tablet hybrid territory,” reports Digital Trends. Continue reading CES 2013: Samsung to Possibly Unveil 4.99-inch 1080p Touchscreen

Will Multi-Function Tablets Become the Next Mass Market Games Platform?

By
November 28, 2012
  • With a growing number of tablets hitting the market, and games now serving as the largest category of tablet apps, industry leaders are faced with a possible shift: Are tablets the gaming console of the future, or something all to their own?
  • Tablets certainly play an important role in the gaming industry, argues Scott Steinberg, CEO of TechSavvy Global, but Greg Harper of Supercell North America adds that tablets should not be compared to anything in the past (i.e. gaming consoles) because they have created a new market rather than replaced an old one.
  • The consensus among industry leaders is that tablets will not replace consoles, but could pull casual gamers away from the more expensive and time consuming consoles in favor of the relatively simple world of tablet games.
  • “I don’t think tablets are going to replace the next console generation, but they will siphon a large number of potential players away from next generation consoles,” suggests Chris Ulm, CEO of Appy Entertainment. “Tablets will have the effect of luring away casual and semi-casual players because they are portable, have multiple entertainment functions and an incredible number of free or low priced games.”
  • Tablets should dominate consoles this holiday season for multiple reasons, industry insiders told GamesIndustry International.
  • First, Microsoft and Sony’s consoles are dated, and fans are essentially waiting for the next console. This leaves tablets competing with just the Wii U. Additionally, some parents favor tablets rather than consoles because tablet games are relatively inexpensive compared to the $60 offerings on consoles.
  • But if game developers hope to make a significant splash in the gaming industry, they must overcome the problem that tablets lack physical buttons. This makes complex controls difficult. The first game to overcome this obstacle will likely benefit greatly.

90 Percent of 18-29 Year-Olds Sleep with Smartphones: Too Connected?

By
November 28, 2012
  • More than 75 percent of Americans are now connected to mobile devices (smartphones, tablets and/or laptops). According to a new infographic from Online Psychology Degree, it seems smartphones are becoming much more to users than convenient mobile devices.
  • Some of the more interesting (or perhaps alarming) findings:
  • “90 percent of 18-29 year-olds say they sleep with their phone in or right next to the bed” and “one in three smartphone owners would rather give up sex than their phones.”
  • “In the hour before bed, 95 percent of people say that they regularly browse the Web, text and watch TV.”
  • While 25 percent do not silence their phones before going to sleep, one in ten say they are regularly awakened by calls, texts or emails — and half say if they wake up during the night they check their phones immediately.
  • Online Psychology Degree suggests exposure to the light from electronic devices so close to bedtime suppresses melatonin and can lead to sleep disorders, stress, depression and more negative effects.
  • “You love your gadgets, but taking them to bed isn’t worth it,” concludes the infographic. “When you go to bed, say goodnight to your technology, too.”

Megaupload Shutdown Hurts Box Office Totals: Is Piracy Free Marketing?

By
November 28, 2012
  • The shutdown of the Megaupload file-sharing service in January has hurt box office revenues for average and smaller firms, writes Torrent Freak. This could be because word of mouth promotion was negatively affected, as fewer people saw the films on Megaupload.
  • The report comes from the Munich School of Management and Copenhagen Business School in a study that analyzed weekly data for 1,344 movies in 49 countries over five years.
  • While negative effects were found in some cases, the report notes that some of these negative effects were negligible. However, the report still concludes that piracy can act as a form of promotion, as people who watch pirated movies can talk about them to friends, who then actually purchase tickets.
  • “Our counter-intuitive finding may suggest support for the theoretical perspective of (social) network effects where file-sharing acts as a mechanism to spread information about a good from consumers with zero or low willingness to pay to users with high willingness to pay,” notes the report, titled “Piracy and Movie Revenues: Evidence from Megaupload.”
  • While this theory works for small and average films, it does not work for films shown on more than 500 screens. For these bigger films, Megaupload’s shutdown had the opposite effect and helped increase revenues.

Cinema History: Warner Bros. to Release HFR Version of The Hobbit

By
November 28, 2012

We have an update to Peter Jackson’s “The Hobbit: An Unexpected Journey,” the first major movie release to be shot at 48 frames per second. When the film premieres in the U.S. on December 14, a new projection technique — that could possibly revolutionize the industry — will offer some film fans a brand new experience. Continue reading Cinema History: Warner Bros. to Release HFR Version of The Hobbit

Retail Trends: Cyber Monday 2012 Sets New Record in Online Sales

By
November 28, 2012
  • According to the Adobe Digital Index, which tracks consumer shopping activity, this week’s Cyber Monday has become the busiest online shopping day in history. The report indicates that online sales grew 17 percent over last year to $1.98 billion.
  • Adobe suggests that mobile shopping “has passed the tipping point.” Cyber Monday saw mobile devices accounting for 22 percent of total online shopping, up 100 percent year-over-year.
  • Tablets accounted for 14.1 percent of total online sales and smartphones generated 6.8 percent.
  • “We attribute this behav­ioral change to two fac­tors,” explains the report. “First, con­sumers are more will­ing to fill up their online bas­ket to a higher dol­lar amount and com­plete the trans­ac­tion in a shorter period of time.”
  • “Sec­ond, con­sumers have become savvy mobile shop­pers. We antic­i­pate that the behav­ioral change will be fol­lowed by mod­i­fi­ca­tions to online pro­mo­tional strate­gies as shop­ping behav­ior con­tin­ues to move online.”
  • The impact is also being felt outside the U.S. “We’re notic­ing the ‘Cyber Mon­day effect’ slowly spread­ing to other parts of the world where they don’t cel­e­brate the Thanks­giving holiday,” notes Adobe. “In Europe, Cyber Mon­day this year rep­re­sented an 8 percent growth in online sales.”
  • Adobe expects retailers to generate $6 billion in online sales since Thanksgiving Day. “With over­all growth rates for hol­i­day spend­ing in the low sin­gle dig­its, online shopping’s con­tin­ued double-digit growth appears to be an unstop­pable force,” concludes the report.

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