YesVideo Digital Conversion Service Integrates with Facebook Timeline

  • YesVideo converts physical media to digital and allows customers to share indexed footage via their Facebook Timelines. Customers can use the service to digitize old VHS tapes, 8mm, miniDV and photos — and publish to Timeline through a new feature that launched last week.
  • “You can submit your vintage videos at any of YesVideo’s at CVS/pharmacy, Walgreen’s, and Costco retail locations,” explains Digital Trends. The footage is then shipped to YesVideo where it is digitized and uploaded to the cloud for easy access.
  • “While YesVideo’s primary focus is its cloud hosting service, the company sends you a DVD copy, alongside the original media,” explains the post. Additionally, YesVideo indexes the video content algorithmically and breaks it into chapters. This offers users the ability to share more manageable clips.
  • “YesVideo digitizes over 1.5 million videos per year, and with its indexing feature, turns that into approximately somewhere between 75 million and 150 million clips a year,” notes the post.
  • The company is also planning an open API in order for third-party developers to create new tools.
  • “This idea that you have all your home videos and access to your extended family’s old home videos and you sit down and log into your Google TV for instance or your Roku box and voila, you’ve got your home videos that you can share with your family or on your mobile device,” says CEO Michael Chang.

Yelp Tries New Strategy: Will Consumer Alerts Discourage Fake Reviews?

  • Last week, Yelp introduced a new consumer alert label in an effort to to crack down on fake reviews.
  • “Whenever Yelp catches a business paying a customer or individual for a review, the site will flag that company’s page with a notice that reads, ‘We caught someone red-handed trying to buy reviews,'” Mashable reports.
  • The label will remain on the page of an infringing business for 90 days. If the business continues to buy reviews, the notice will stay longer. Additionally, interested users can click on the label to see the fake reviews.
  • Yelp hopes the initiative will cut down the number of fake reviews by creating a strong disincentive for businesses, but Mashable notes, “It remains to be seen how successful this new effort from Yelp will be.”
  • “Yelp’s automated review filter is working around the clock to flag these types of biased reviews, and we believe that you deserve the right to know when this type of activity is taking place behind the scenes,” explained the company in a blog post.
  • The issue of fake reviews is expected to continue in the coming years. According to a report by Gartner, fake responses will rise to 10-15 percent of all social media reviews in 2014.

Amazon Turns to Purchase History Data to Ramp Up Advertising

  • Amazon is positioned to make up to $1 billion in advertising over the next year, according to Baird Equity Research.
  • While Facebook “knows who your friends are” and Google “knows what you’re interested in finding on the Internet,” Amazon has the unique advantage of purchase history. This is an immensely valuable item to offer advertisers who want to target people who will actually buy their products.
  • Amazon can use its user purchase history data to help create targeted advertising on its ad-supported Kindles. Amazon can also use the data for a per-click advertising model on Amazon.com as well as Amazon-owned sites such as Zappos, IMDb, and Diapers.com, reports Wired.
  • Lisa Utzschneider, VP of global sales for Amazon, explains that Amazon’s advertising could help customers. “If we think about Amazon in two worlds, one world is an Amazon with ads and lower prices. Another world is an Amazon with no ads and higher prices,” she notes. “Which one would we choose?”
  • Amazon is the sixth most visited site in the U.S. every month, according to comScore. The top five sites all rely on advertising for revenue, but Amazon does not. It has already been successful without advertising, but if the company combines its substantial traffic with its precise user data, it could add much more value.
  • Additionally, the company’s demand-side platform (DSP) enables tracking of people who made purchases on Amazon, data that can be used to advertise on different sites.
  • “The winner in the media game is the one who can best identify a user and match that user up with an affiliation that an advertiser cares about,” suggests Jay Habegger, CEO of Boston advertising firm OwnerIQ.

The Rise Of Smobile: Convergence of Social and Mobile By the Numbers

  • At its Social Media ROI conference, Business Insider addressed the convergence of social and mobile — which it calls “smobile.”
  • The presentation noted statistics that look at “the continued shift of social networking to mobile, how smartphones compound the difficulties of advertising on social networks, the potential of social commerce and social discovery applications, and the players who have the early lead in monetizing social-mobile media.”
  • In March 2012, the number of minutes per month spent on apps rose above 120 billion, while mobile Web usage stayed pretty stagnant around 20 billion minutes per month. That said, mobile Internet is increasing as desktop Internet traffic drops off.
  • Social networking is one of the fastest-rising activities on mobile devices. In 2011, users spent an average of 15 minutes per day on social networking apps. In the same quarter of 2012, that number had increased to 24 minutes, the same amount spent playing games.
  • Business Insider reports that “37 percent of U.S. smartphone owners check social networks daily; 64 percent monthly.” Facebook has accumulated around 500 million mobile users, and 55 percent of Twitter’s usage is mobile.
  • Unfortunately, click-through rates on mobile ads sits at only 32 percent and only about a third of smartphone users believe advertising is acceptable. Also, mobile remains a small fraction of digital ad spending.
  • Despite efforts to advance social commerce, there hasn’t been much traction. It’s not enough to provide discounts based on proximity; consumers have to first be interested in the product or service. Similarly, checkins and social references to commerce sites are “tiny.”
  • The presentation recommended “native” mobile ads like Facebook’s “Sponsored Stories” that appear along with regular content. Ads also need to have contextual relevance.

Global Smartphone Use Hits the One Billion Mark: To Double by 2015?

  • More than one billion smartphones are now in use worldwide, according to Strategy Analytics. The research firm also projects there will be over 2 billion smartphones by 2015.
  • The numbers mean that one in seven people worldwide now uses a smartphone. This represents a 47 percent increase since last year.
  • Nokia is credited with introducing the first “modern” smartphone in 1996. The industry exploded following the rapid adoption of Apple’s iPhone.
  • “The growth of the smartphone market, estimated by Bloomberg Industries to be worth $219 billion last year, has helped Apple and Samsung Electronics Co. rack up record earnings as they take sales from rivals including Espoo, Finland-based Nokia,” reports Bloomberg.
  • Apple set a new record last month when the company sold more than 5 million iPhone 5s during the product’s debut weekend. “Samsung, the Suwon, South Korea-based maker of Galaxy smartphones, ended Nokia’s 14-year reign as the world’s biggest maker of mobile phones this year,” notes the post.
  • While the U.S. smartphone industry has already boomed, Strategy Analytics executive director Neil Mawson explained that “Most of the world does not yet own a smartphone and there remains huge scope for future growth, particularly in emerging markets such as China, India and Africa.”

Multiple Studies Suggest Cord-Cutting Takes Back Seat to Cord-Cuddling

  • Despite the attention cord-cutting has received, several recent studies suggest that consumers are in fact much too comfortable with their pay TV subscriptions to switch.
  • According to a survey conducted by PricewaterhouseCoopers, “The reluctance to opt out of pay TV subscriptions may be less about enthusiasm than about inertia,” reports Variety. “Nearly three out of four surveyed indicated they had no plans to change providers in the next year, and 59 percent hadn’t bothered switching providers within the past year, which PwC chalked up to complacency.”
  • Another survey of 2,000 online respondents by Digitalsmiths found that keeping customers could however be difficult. “Of the four-fifths who registered satisfaction, 38 percent said they would consider changing services within the next six months,” explains the article. “But rival pay TV services are likelier to benefit from that switch than so-called over-the-top apps like Netflix; 65 percent of those surveyed didn’t use those services at all.”
  • Rising fees was the main reason for dissatisfaction among the remaining one-fifth. Although nearly double the rate of inflation, pay TV fee increases still lag behind the price growth of a gallon of gas, a cup of coffee or pet food.
  • “You don’t often hear of pundits warning of a pending crisis because the cost of dog food is spiraling out of control,” Bernstein Research analyst Todd Juenger notes.
  • Cord cutting isn’t entirely out of the picture though. “Younger demos showed significantly less devotion to multichannel brands and more willingness to switch, particularly when it came to new features. Half of respondents ages 18-29 told PwC they were ‘likely to use the Web to satisfy their entertainment needs,’ which could bode well for the Hulus of the world,” the article states, warning pay TV providers from getting too comfortable.

Ultra High-Definition: CEA Announces Name for Next Generation 4K TVs

  • The next generation 4K HDTVs will be known as “Ultra High-Definition” or simply “Ultra HD,” according to a decision made Thursday by the Consumer Electronics Association’s Board of Industry Leaders.
  • The first Ultra HD models are slated to go on sale this fall and are expected to be a major theme at January’s CES in Las Vegas. LG launched its $20,000 84-inch Ultra HD model in September, followed by Sony with its competing 84-inch model for $5,000 more.
  • “Earlier this year, the CEA Ultra HD Working Group was formed to discuss how best to define and educate consumers about this new technology,” reports Broadcasting & Cable. “The organization also undertook extensive consumer research on the best way to explain to consumers the new technology and its value.”
  • To meet the requirements of Ultra HD status, products such as TVs, monitors and projectors need to feature at least eight million active pixels.
  • “Displays will also have an aspect ratio of 16×9 and must have at least one digital input capable of carrying and presenting native 4K format video at 3,840 x 2,160 resolution,” notes the post.
  • “Ultra HD is the next natural step forward in display technologies, offering consumers an incredibly immersive viewing experience with outstanding new levels of picture quality,” says Gary Shapiro, president and CEO of CEA. “This new terminology and the recommended attributes will help consumers navigate the marketplace to find the TV that best meets their needs.”

Pirate Bay Trades Physical Servers for Cloud-Based Virtual Machines

  • “All attempts to attack The Pirate Bay from now on is an attack on everything and nothing,” the service stated on its Facebook page with the announcement that it has traded out its physical servers for virtual machines on cloud services.
  • “By hosting its infrastructure in multiple data centers and even multiple countries, the widely used torrent site says it will avoid being shut down by authorities targeting BitTorrent sites,” Ars Technica writes. “It has been the target of raids on previous occasions, and has suffered downtime because of the types of IT hassles that afflict most businesses. Moving to the cloud will help on both counts.”
  • In a related article, TorrentFreak reports that The Pirate Bay is now hosted by several cloud hosting providers in two countries, and providers don’t know they’re hosting the service. “All the important data is backed up externally on VMs that can be reinstalled at cloud hosting providers anywhere in the world,” notes the post.
  • Converting to the cloud also has IT benefits, such as avoiding going offline for reasons like broken power distribution units — a problem The Pirate Bay faced in the past.
  • “If one cloud-provider cuts us off, goes offline or goes bankrupt, we can just buy new virtual servers from the next provider,” a Pirate Bay spokesperson told TorrentFreak. “Then we only have to upload the VM-images and reconfigure the load-balancer to get the site up and running again.”
  • There are still ways for authorities to take The Pirate Bay offline despite the service’s claims. ExtremeTech also notes that installing a new load balancer is not easy or cheap.

Lifespan of Social Games Gets Shorter, Uncertainty Impacts Investment

  • The social gaming space has become increasingly crowded, and customer attention spans for games have become shorter.
  • This has resulted in a dangerous scenario for game developers, as investors do not want to put money into a game when the life span can “be clocked with an egg-timer rather than an old-fashioned desk calendar,” writes Fortune.
  • Robert W. Baird & Co. researcher Colin Sebastian notes that while the social gaming market is still growing, the pace has slowed considerably, and the uncertainty inherent in the genre makes it a tough sell for investors. “Games are a hit-driven business,” he says, “so it’s really hard to have a crystal ball and know what games are going to be successful and for how long.”
  • Zynga’s purchase of OMGPOP for $200 million underscores the uncertainty in social gaming. Zynga wanted OMGPOP’s hit game “Draw Something,” but just as Zynga bought the game, the user base tanked, as users got bored and moved on to new games.
  • PopCap Games has also struggled since Electronic Arts purchased the company in 2011 for $1.3 billion.
  • “We’ve seen a dramatic change in the way people play and pay for games,” explains PopCap founder John Vechey. “The change in consumer tastes requires us to reorganize our business and invest in new types of games on new platforms — it’s a completely different world from when we started.”
  • Analysts warn against the acquisition of “one-game companies” like OMGPOP because of the quick turnover in what games are popular at any given time. Other analysts suggests companies should hire individual developers rather than companies.

Isis Consortium to Launch New Mobile Payment Network Next Week

  • The Isis consortium has announced that its mobile-payment service using smartphones with NFC chips will launch Monday in Salt Lake City and Austin, Texas. The test launch was originally scheduled for the summer.
  • The consortium includes wireless carriers AT&T, T-Mobile and Verizon Wireless. Isis confirmed via an email statement that 20 Isis-ready phones would be available by the end of 2012 to use the network.
  • T-Mobile USA Mobile Commerce is offering the Isis Mobile Wallet application through the Google Play online store. AT&T will provide five phones: the Samsung Galaxy S III, HTC One X, Samsung Exhilarate, LG Espace and Samsung Rugby Pro. The other carriers have yet to announce specific models.
  • “Isis previously confirmed a number of retailers, gas stations and transit providers that will be equipped to handle the NFC payments,” reports Computerworld. “The NFC phones also contain special security, known as a ‘secure element’ inside, which protects a customer’s credit card information.”
  • “There has been a debate between banks and other parties to mobile commerce as to whether the secure element should remain in the phone — either on a SIM card or embedded in the phone’s core — or be should located in the cloud,” notes the article.

Mobile Web Traffic: Android Smartphones Steal the Lead from iPhone

  • Earlier this year, Apple controlled 72 percent of smartphone traffic and Android accounted for only 26 percent.
  • This week, the tables have turned and Android now holds the majority — even with the impressive traction of the new iPhone 5.
  • All of Apple’s phones (from the original 2007 model to the latest release) represent 46 percent of traffic. The new iPhone 5 has taken up three percent of North American mobile Web traffic, quickly surpassing the Galaxy S III at two percent.
  • Non-Samsung Android phones are responsible for 34 percent of North American mobile Web traffic. Samsung phones (almost exclusively Android) control 17 percent. In total, Android now accounts for 51 percent of traffic.
  • “We are right at the tipping point between majority iPhone and majority Android Web traffic,” VentureBeat writes. “That’s big news, and while it was likely to come for some time given the fact that Android out-sells iOS, it’s a milestone event. The question now becomes: How high will it go?”

Netflix Plans for User Control of Apps on TVs and Connected Devices

  • Netflix rolled out second screen features for the PS3 a few weeks back that provide users with game console controls from their Android or iOS handset. The company is now looking to expand this offering to other devices, enabling users to control their TV apps and connected devices with mobile handsets.
  • “Our overall strategy around second screen control is that Netflix on TV devices is a great viewing experience, but Netflix on mobile devices makes activities like browsing, searching, rating and social easier,” explains a Netflix spokesperson. “We see our users doing this naturally today and are trying to support and optimize for that behavior.”
  • “It makes a lot of sense for the company to use phones and tablets as remote controls for the TV screen,” GigaOM writes. “Netflix’s catalog now consists of roughly 50,000 titles, which is hard to navigate and search on a TV or connected device. Tablets on the other hand in particular make for great programming guides, and the ability to beam a video with one click to the big screen could be a great addition to the company’s apps.”
  • In order to take advantage of the second screen controls, Netflix viewers “need to be logged into the Netflix application on both devices with the same Netflix account, and also have their mobile phone connect to the same Wi-Fi network as the game console,” the post explains.
  • Google TV could be the next platform to get second screen support. The company has been working on its own second screen experience for Google TV apps.

DVR and Streaming: Primetime Viewing Sees Shift with Younger Viewers

  • While primetime television consumption is as high as ever, the percentage of viewers watching live programming has dropped. People are watching more content either on DVR playback or on demand through streaming services, according to research firm GfK.
  • This has resulted in live television viewership during the 8:00-9:00 pm time slot (among those watching some sort of television) to drop from 83 percent in 2008 to 64 percent in 2012.
  • Recorded program viewing has risen 10 percent to 26 percent of total viewing during this time slot. Video game playing and streaming video services have also increased their share.
  • The trend is more dramatic for viewers in the 13-32 age bracket, where live television viewing only accounts for 57 percent of the current 8:00-9:00 pm slot.
  • “The GfK research also noted that the number of viewers using smartphones while in front of their TVs during primetime is at 20 percent, a habit that wasn’t on the radar four years ago, which could speak to the potential of second screen applications,” writes Variety.

Aereo TV Expands Service to Include PCs and Additional Web Browsers

  • While broadcasters continue to challenge the legality of Aereo, the TV-over-Internet service is expanding its availability.
  • “Aereo is still limited to residents of New York City, but it’s now available on additional devices including Windows computers and on a wider selection of Web browsers including Chrome, Firefox and Internet Explorer,” reports USA Today. “Before, access was restricted to selected Apple devices such as the iPhone and the iPad, as well as the Roku streaming set-top box.”
  • The company is expected to launch in additional markets in a few more months and may be available on Android devices by the end of this year.
  • “Aereo lets customers capture over-the-air broadcasts from 29 local channels for viewing on devices, with subscriptions starting at $8 a month,” explains the article. “Aereo has created a dime-sized TV antenna and crams hundreds and perhaps thousands of them into dishwasher-size boxes located at the company’s offices in Brooklyn. A customer who watches or records a show is temporarily assigned an antenna, which picks up the show and streams it over the Internet.”
  • Networks including Fox, ABC, CBS and NBC filed a copyright infringement lawsuit claiming Aereo illegally copies and retransmits their content, but Aereo believes that assigning individual antennas to customers makes it legal.
  • A federal judge denied broadcasters a preliminary injunction to stop Aereo in July. However, the case is still pending.

NPD Study Notes That Smart TV Penetration Lagging in North America

  • Approximately 20 percent of televisions shipped in North America are Internet-connected TVs, a penetration rate significantly lagging behind Asia and Europe, according to NPD DisplaySearch.
  • While Smart TV shipments are actually up 15 percent worldwide this year, adoption in North America has been slower.
  • “North American households consume the highest levels of Internet video, averaging over 30GB per household every month (according to Cisco), yet they don’t seem attracted to connected TVs,” explains NPD’s Paul Gray. “We find that North America leads by far in paid on-demand services, which tend to be tied to set-top boxes.”
  • “Smart TV shipments are tightly linked to content consumption habits,” reports Home Media Magazine. “For consumers in China, there is plenty of free content on the Internet and few structured services. This favors TVs with built-in browsers. Furthermore, Chinese consumers consider a TV to be a prestigious purchase and are prepared to invest more in them.”
  • “Terrestrial broadcasters’ repurposed content aggregators are beginning to dominate in Western Europe,” notes the article. “These broadcasters have no interest in hardware, so connected TVs are flourishing with open standards such as HbbTV rapidly gaining acceptance and evolving with new features.”
  • An estimated 43 million open Internet access smart TVs are expected to ship in 2012, a number predicted to grow to 95 million in 2016.