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Nintendo Wii U Expands Entertainment Options with YouTube App

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November 26, 2012
  • Game consoles are increasingly offering non-gaming entertainment options including access to online services.
  • “Movies streamed from Netflix, music courtesy Last.fm, and, of course, the ubiquitous crowd-sourced video content of YouTube have all become nearly as common uses for the Xbox 360, PlayStation 3 and Wii as those consoles’ respective games,” reports Digital Trends.
  • “It should come as little surprise that Nintendo’s newly-launched Wii U console should play host to a dedicated YouTube application a mere five days after its retail debut,” suggests the post.
  • “The Wii U’s official YouTube application appears to be little more than a relatively standard aesthetics and functionality update for the original Wii YouTube app, only with special accoutrements added which take advantage of the console’s exclusive features.”
  • The Wii U app — like all official YouTube apps — is free of charge. Once downloaded, users imply enter their YouTube credentials to gain access to the site’s extensive video content.
  • Currently, the app does not include functionality that might allow users to upload video content to YouTube via the Wii U. No consoles are able to upload footage via their YouTube apps, “but given the number of recent, big-name releases that boast YouTube uploading capabilities as an important feature, it only stands to reason that YouTube and the various console manufacturers would want to expand the scope of their respective YouTube applications.”

Apple to Rule Tablet Downloads for Five Years, Paid App Market to Decline

By
November 26, 2012
  • Despite its tablet market lead experiencing a dent in Q3, Apple’s iPad will continue to dominate the market for the next five years, according to Strategy Analytics.
  • “In its Mobile Apps Download Forecast: 2008–2017 report, Strategy Analytics forecasts a total of more than 350 billion smartphone and tablet app downloads between 2008 and 2017,” reports TechCrunch.
  • “The analyst predicts the Google Play store will account for more than 45 percent of phone-related downloads in 2017, while Apple’s iTunes Store will account for 56 percent of tablet downloads in five years’ time.”
  • By 2017, free apps will account for 91 percent of downloads, although paid apps will continue to be “an essential component of the app ecosystem,” according to Josh Martin of Strategy Analytics.
  • “Paid downloads will remain an important way for smaller developers to monetize their efforts,” he says. “For developers committed to paid downloads transitioning to tablets may be the smartest way to preserve the business model over the long term.”
  • “App Stores will also see a revenue crunch as more revenue is earned from advertising — revenue generated outside the bounds of the app store — and will need to prepare,” adds Martin. “Newer platforms such as Windows 8, BlackBerry 10, Tizen and Firefox are building their operating systems and storefronts with this knowledge which should go a long way to making them attractive to developers and end-users.”

Dyle Delivers Live TV to the Apple iPad: Ready for Prime Time?

By
November 26, 2012

Watching live television on an iPad currently has limited options. With a cable subscription, for example, users can stream Disney and ESPN shows. Alternatively, New York City viewers can opt for Aereo (but the networks are suing to shut it down). Enter Dyle, which just launched for Apple’s iOS devices. Dyle, with support from NBC, Fox and other top broadcast groups, has released a free TV app for iOS devices that uses broadcast signals to beam licensed programming to viewers. Continue reading Dyle Delivers Live TV to the Apple iPad: Ready for Prime Time?

Opinion: TV Everywhere Requires Less Complications, More Consistency

By
November 26, 2012
  • “The TV Everywhere pitch is straightforward: If you pay for cable TV, you can watch cable TV wherever you want — on your iPad, in your bedroom, on your phone, in the airport,” writes Peter Kafka for AllThingsD.
  • “The reality is a lot more complicated, for a lot of reasons, but the upshot is that right now you can only watch a bit of what’s on cable on devices that aren’t your TV,” he notes. “And if the cable guys are going to convince people not to cut the cord, or to sign up for the cord in the first place, that’s going to have to get better.”
  • Kafka cites ESPN’s “great WatchESPN app” as an example of this model that really enables consumers to watch content everywhere on demand. However, the app let Kafka down when he tried to watch Monday Night Football on his phone.
  • “The problem, says ESPN PR, is that Verizon has an exclusive on NFL mobile rights, so ESPN can’t deliver the game to me on my iPhone, even when I’m at home, on a Wi-Fi connection (which is the way that lots of mobile video gets consumed),” he writes.
  • While this may make sense from a business development perspective, what is the reaction of average sports fans who expect to watch what they want, when they want?
  • Even more confusing: while the game was not available on the iPhone, it was available on the iPad.
  • “Again, trying to argue that some rights apply to a 9.5-inch screen but not a 3.5-inch screen is the sort of thing that makes sense to lawyers and deal-makers, and no sense at all to normal people,” concludes Kafka. “You know, the people you want to keep paying for cable.”

Michael Powell: Cable Companies At the Mercy of Content Companies

By
November 26, 2012
  • Michael Powell, president of the National Cable and Telecommunications Association and former FCC chairman, suggests that content creators are still in control in the emerging multiplatform age.
  • “Technologists are excited about software or hardware and we forget that people are really buying and holding on to stories,” notes Powell.
  • “The challenge in the living room — when you talk about new devices and platforms what often gets left out is access to the highly-produced, licensed content that viewers most crave. You’re asking to substitute a fresh experience.”
  • “The holy grail for the living room to me isn’t technology,” he says. “It’s figuring out how to integrate the phenomenal power and interactivity and information of the Internet into the highly produced premium content that we crave.”
  • When asked whether manufacturers should be able to tap into cable streams and offer alternative experiences, Powell suggests that “cable companies are at the mercy of content companies on the issue of content rights and use.” Mirroring the cable experience on other devices is not a technological issue, but an issue of licensing rights.
  • “At the end of the day Apple and Boxee and Vudu and Roku are going to find out that the content market is tough and expensive, and it’s hard to do the most creative things,” he says.
  • Powell suggests that all companies are heading toward IP-distributed content and a shift from a hardware-centric environment to a software-centric environment. “When the guide and content are in the cloud, you can change look and feel overnight,” he adds. “You won’t have to come in and get a whole new box — that’s a horrible model.”

Cisco Strategy for Taking on Patent Trolls: Turn the Tables with Litigation

By
November 21, 2012
  • Patent trolls conducted by non-practicing entities, who buy up patents to make money from licensing and lawsuits, have become increasingly common.
  • “The proportion of patent lawsuits filed by NPEs has grown to 40 percent in 2011 from 22 percent in 2007, according to Lex Machina, an intellectual-property litigation, data and analytics company,” reports the Wall Street Journal.
  • Now, networking-equipment maker Cisco is fighting back with its own litigation.
  • “Cisco’s suit against Chicago-based Innovatio IP Ventures LLC targets a tactic that some NPEs have employed in recent years,” explains the article. “Rather than allege that a big technology company has infringed one or more of their patents, Innovatio and other NPEs have gone after the tech company’s customers,” like coffee chains or hotels which don’t have the resources to fight costly lawsuits.
  • “Innovatio’s tactics, Cisco argues in its lawsuit, are ‘misleading, fraudulent and unlawful.’ It says they effectively amount to an extortion scheme, and therefore violate federal antiracketeering laws,” WSJ reports.
  • “A win by Cisco isn’t necessarily going to stop the NPE industry in its tracks,” says defense lawyer Ann Fort. “But it could halt some of the tactics used by NPEs, like going after companies’ customers.”
  • In a related case, Cisco is claiming Mosaid Technologies paid witnesses for testimony in infringement claims it filed against Cisco last year.
  • “Sometimes, lawsuits are about how much damage you can threaten in order to change behavior,” says Robin Feldman, a law professor. “At the very least, Cisco might get that. Or it could get a sympathetic judge or jury that takes Cisco’s case and runs with it.”

Betable API Raises the Stakes on the Global Future of Online Gambling

By
November 21, 2012
  • A San Francisco-based startup aims to add an element of gambling to both traditional and non-traditional games of chance, taking anything from poker to “Farmville” and raising the stakes.
  • Betable manages gambling transactions, allowing developers to focus on their game and simply configure rules on Betable’s API. Doing so enables these companies to bypass gambling licenses because all the gambling aspects are controlled by Betable.
  • Developers anywhere can build off the platform, but because online gambling is illegal in the U.S., the consumer opportunity is limited to other countries. Betable’s CEO Chris Griffin says there’s still an enormous opportunity for the technology in Europe, Asia, Canada, Australia and elsewhere.
  • “In terms of number of players, I think it’s an order of magnitude bigger than the existing online gambling market,” he says. “We’re going after an audience that’s already playing social games and mobile games,” which is much larger than the existing gambling market.
  • Betable is funded by Silicon Valley venture capitalists and currently has 18 employees.
  • “The company has survived a grueling licensing process for the UK and other markets, and has begun to sign up online video game companies interested in adding a gambling component to their games,” Forbes writes.

Spotify Founder Says the Future of Music Industry is in Low-Margin Model

By
November 21, 2012
  • Spotify founder Daniel Ek compares the music streaming service, now valued at $3 billion, to Amazon, saying he’s willing to bet on low-margins to build the business in the long term.
  • The music industry has been resistant to such services, but Ek suggests the business model makes more sense as consumers’ habits have changed.
  • “Songs in the [Spotify’s] catalog are played again and again, with no diminution in popularity,” in contrast to the quick decline of sales after CD releases, Quartz writes. “The reason is simple: people are building playlists. It’s as if an artist were paid every time one of their fans dropped a needle on their record.”
  • “They’re saying, oh, they’re just paying a fraction of a cent every time someone plays a song,” says Ek. “And then you compare it versus the download revenue. Well, I can tell you it will take you 200 song listens before you make the same amount of money [as a download]. But because the consumption behavior is entirely different, and the revenue then increases in perpetuity, it’s not even a question of if this model is better, it’s just when in the life cycle it’s better.”
  • Ek wants to rebuild the industry that has been torn down by piracy and consumers’ shifts in behavior.
  • “As the world moves from owning content to getting access to it on demand, Ek’s experience is likely to generalize across all kinds of content,” including movies, notes the article. “It’s a fundamental transformation of how artists and their industries will make money.”
  • As a point of differentiation from other services, Spotify is focused on music discovery. But it relies on third-parties to build such apps on top of Spotify’s library.
  • “We distinctly don’t think we’ll figure out every single use case around music,” says Ek. “But we do want to be the platform for music… If there’s music somewhere, we should power that.”

Myspace Looking for $50 Million to Relaunch as Spotify and Pandora Killer

By
November 21, 2012
  • After spending the last year redesigning the once thought to be dead Myspace, Interactive Media Holdings plans to relaunch the site in 2013 as a direct competitor to Spotify and Pandora, according to documents obtained by Business Insider.
  • Specific Media bought Myspace during the summer of 2011 for $35 million, and then changed the company name to Interactive Media Holdings. The company then rebranded Myspace as a destination for unsigned artists to showcase their music.
  • Myspace traffic has risen 36 percent since the acquisition, but still stands to lose $40 million this year and a projected $25 million next year.
  • Interactive Media Holdings is looking for another $50 million in funding, of which “$10 million will go to marketing, $15–$25 million will go to licensing deals with the music labels, and another $15 to $25 million will be reserved for ‘general working capital,'” writes Business Insider.
  • “Interactive says the big competitive advantages for MySpace versus Spotify and Pandora is that it pays labels a lower rate for song plays than Spotify and Pandora. MySpace relies on 27 million songs from unsigned artists, who account for 50 percent of the music played on its site.”
  • The post includes Interactive Media Holdings’ pitch deck, an interesting inside look at how tech companies sell themselves for a significant funding push.

Economics of Superstars Meet the Internet: Comparing Music and Apps

By
November 21, 2012
  • Before the iPhone, the app economy did not exist. Since then, it has grown to produce 400,000 jobs and billions of dollars in business.
  • But just like every other market, the app economy is controlled mostly by a few large players. To illustrate this point, The Atlantic notes that while Apple has paid $6.5 billion to app developers, only 25 percent have made more than $30,000 and only 4 percent more than $1 million.
  • The article compares apps to the music industry in that there are many people trying to do the same thing, and when one gains traction, it translates to tremendous growth internationally. This means that minuscule differences can suddenly spark one app or musical artist to international glory, while a similar application or artist struggles to gain any notoriety.
  • “It’s the Economics of Superstars law, applied to apps: In a crowded international field, small differences in talent can translate to huge differences in outcomes,” suggests the article. “The most popular photo app, Instagram, was bought by Facebook for $1 billion. The 10th best photo program probably isn’t worth 1 percent of that figure.”
  • But there are differences between apps and music, such as the tendency of “venture capital firms who buy equity in promising apps with the expectation that ad money, or something else, will follow audience,” explains The Atlantic.
  • “But since many of these bets are made with the expectations that somebody somewhere will figure out the model for monetizing mobile attention, it’s not alarmist to suggest that the longer big companies like Google and Facebook struggle with mobile ads, the smaller VC’s appetite for some apps will become.”

Online Payments Becoming Mainstream, Yet Consumers Remain Hesitant

By
November 21, 2012
  • As smartphone and tablet adoption grows, so do online payments, but they still remain a small portion of all transactions — mostly because of fear.
  • A 2012 survey from online authentication firm Entersekt found that only 32 percent of men are inclined to carry out online transactions on their mobile devices. For women, that number was even less, just 25 percent.
  • “In today’s world, consumers are not only aware that fraud exists, but many have either experienced it personally, or know someone that has,” writes Entersekt’s CEO Schalk Nolte. “This criminality impacts all of us through increased insurance, increased prices, and increased hassle. However, what I think is interesting and actually quite comforting, is that people are happy to be inconvenienced if it means they’re better protected.”
  • The development of new encryption technologies such as SSL (Secure Socket Layer) will help to increase security without delaying transactions.
  • According to a report from Ecommerce Europe, the expansion of smartphones will make 12.5 of all e-commerce transactions mobile by the end of 2013.
  • “It needs to be stressed, however, that such prospects will not materialize unless online payment services providers keep constant track of market trends, consumer demands and competition in this challenging market environment,” Ulric Jerome, with Ecommerce Europe, said in the report.
  • While both increased security and mobile devices will play a big part in making online payments mainstream, social influence will also have a big role. “Consumers are more likely to adopt new methods of currency exchange when they feel that everyone else is doing it too,” reports ReadWrite.
  • “Bottom line: The more people hear and see online payment systems in action, the more they will want to try them for themselves. In the meantime, only the bold are willing to go first.”

Report Analyzes Trends in Mobile Commerce, Anticipates Major Growth

By
November 21, 2012
  • “Mobile commerce is big and getting bigger,” suggests a new report from BI Intelligence that analyzes trends in mobile commerce.
  • The report indicates that 29 percent of American smartphone users have used their devices to purchase something, and adds that Cyber Monday e-commerce sales rose 6.6 percent over last year.
  • This increase falls in line with Bank of America’s predicted $67.1 billion in mobile e-commerce revenue by 2015 for American and European customers.
  • Successful mobile payment systems not only give customers a way to pay for their items, but also add “extra value that can [be] created as a direct link between brands and customers,” according to the report. This means adding coupons, loyalty rewards, or other innovative ways to connect customers and products to mobile payment systems.
  • The report also highlights tablets as important targets, as the devices drive more traffic to e-commerce sites, and tablet customers also complete more transactions than smartphone users.
  • Location targeting allows companies to specifically match customers to stores they are interested in, writes Business Insider. “With in-store mobile marketing, an indecisive consumer can be nudged toward a specific brand or product,” adds the report.

Disney to Shutter Digital Locker, Plans Feature-Filled Movies Anywhere

By
November 21, 2012
  • After three years, Disney has decided to shut down Disney Movies Online, a streaming and digital locker service similar to UltraViolet.
  • The service allowed users to buy and rent movies from the Disney library, as well as stream movies they own on DVD or Blu-ray, but the service did not allow for offline viewing or for viewing on mobile or videogame systems.
  • “The digital environment is rapidly evolving and Disney Movies Online does not have the flexibility that many users today demand,” said a Disney spokesperson. “We made a business decision to close the service until we are able to provide the greatest value and experience to our customers.”
  • Disney is not abandoning the streaming movie business, and is expected to relaunch a Disney Movies Anywhere service with more features and more access to films, writes Variety.
  • While Disney Movies Online plans to officially shut down on December 31, the company will continue to embrace digital platforms.
  • “The opportunity to monetize owned IP is only growing because of new technology,” according to Disney CEO Bob Iger. “We will see growth in revenue and bottom line. It’s an exciting time for intellectual property owners.”

WatchESPN Launches Xbox Live Updates: More Content, Split Screens

By
November 21, 2012
  • WatchESPN is now available for Xbox Live Gold Members. Previously Xbox Live only offered ESPN3, but now users can watch ESPN, ESPN2, ESPNU, ESPN Goal Line, ESPN Buzzer Beater and ESPN3 live on their Xbox.
  • Users must have service from a cable provider that offers WatchESPN. If they do not, they can continue to watch ESPN3 as long as they have an Xbox Live Gold membership “and an Internet connection from an ‘affiliated provider,'” reports Engadget.
  • The Xbox Live app offers split screen viewing so users can watch multiple channels at once — and with Kinect, users can navigate the experience with gestures or voice control.
  • The app also features game reminders and allows for personalization through its “My Sports” feature. The Mini Guide “gives fans a preview and quick access to all live events and highlights right at the bottom of the screen,” according to the press release.
  • ESPN and Microsoft plan to release an XboxSmartGlass feature for ESPN, NBA, and SportsPicks by December, notes the post.

Social TV Gets Down to Business, But Still in Early Days of Development

By
November 21, 2012
  • With a new Nielsen report indicating that smartphones have saturated 50 percent of the American market and tablets have made their way into 20 percent of American television viewing homes, executives have begun to take second screen viewing more seriously as a legitimate trend, reports Ad Age.
  • Forty percent of Americans use smartphones while watching television at least once a day, according to Nielsen, and 84 percent use a smartphone or tablet while viewing television at least once a month.
  • These trends have executives, like Lou Paskalis of American Express, convinced that this “is a bigger cultural shift.” Paskalis has helped his company toward a vision where consumers use “mobile devices not only to chat and communicate, but also to look for product details and make purchases,” writes Ad Age.
  • While people do not like advertisements on their primary screen, second screen advertisements with relevant content could help drive commerce. This approach supplements the content on the main screen without interrupting the viewing experience.
  • “No one wants to see a pop-up in the middle of their program they love saying ‘Buy this!'” says Paskalis. “The primary screen is not the way to drive the commerce.” Second screen marketing represents “a way to augment the experience without impacting the experience.”
  • American Express is testing the waters through second screen partnerships with Fox and NBCUniversal. Verizon has been testing in-app voting for “The X Factor,” while Target has been steering viewers of ABC’s “Revenge” to additional content on second screens.
  • “How brands will create content that isn’t annoying and isn’t disruptive and really is something worth watching and not skipping — we are in the early days of figuring out that value for the consumer,” says Jeff Jones, Target’s chief marketing officer.

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