Mobile Devices Not Quite Ready for Payments, But Impact Purchases

  • Mobile payments have yet to see major traction. In fact, only one percent of mobile consumers in the UK have ever used a mobile handset to pay at a retail store, according to a new report from Deloitte.
  • However, mobile devices are still being used in stores and have increased retail sales.
  • “In the U.S. Deloitte says that using apps and mobile websites while shopping accounted for a 5 percent bump in retail sales, equating to $159 billion in in-store sales,” TechCrunch writes, noting this percentage increase was also seen in the UK but for lower dollar value.
  • “Fueled by the rise in apps and mobile websites catering to shoppers, as well as smartphone ubiquity, Deloitte forecasts that the impact of smartphones on retail in the U.S. will rise to 17-21 percent — working out to $628 million – $782 million in sales by 2016,” the article continues.
  • The report found that 46 percent of smartphone owners used their devices to research products before visiting the store or while they were shopping.
  • This research influences purchases and, “as Deloitte points out, this is a call to retailers to sort out better mobile experiences for their users, even if they are not directly linked to making purchases, and only to carry more information about the products,” TechCrunch reports.
  • Electronics purchases are most affected by mobile usage, while mobile has little effect on convenience stores and supermarkets.
  • As for mobile payments, Deloitte says, “until more contactless technology gets adopted at the retail end, this is bound to remain on the sidelines.”

Shifting Landscape of Online Brands: Managing the Stars of YouTube

  • Entertainment veteran Michael Green started The Collective in 2005, a media company that represents YouTube talent.
  • “The company aims to capitalize on the shifting landscape in the entertainment business, in part, says Green, by partnering with artists… who he believes are well positioned to take advantage of the continued decentralization of media consumption,” writes Businessweek.
  • Noticing the trend, YouTube executives have gone out to recruit established brands to set up content channels. Media companies like the Onion, Pitchfork and Vice are producing content that competes with YouTube’s homegrown talent.
  • In order to compete and stay relevant, many of these self-funded artists and entertainers are signing on with agencies like The Collective.
  • “Green says that partnering with The Collective frees up artists to focus on creative challenges while his team concentrates on the business side,” notes the article. “In general, The Collective tries to retain ownership rights to their client’s material while maximizing licensing deals with third parties.”
  • This is a growing area of entertainment business, notes Businessweek: “Brand spending in the digital video world has ballooned in recent years, growing from $324 million in 2007 to $1.8 billion in 2011, according to the Interactive Advertising Bureau.”

Google Fiber Expands Offerings with Channels from Disney and Turner

  • The Google Fiber IPTV project in the Kansas City area will offer channels from Disney and Turner Broadcasting as part of its new service.
  • “Google Fiber TV service already includes almost two hundred channels, but we’ll continue to add more over time,” notes Larry Yang, senior product manager, Google Fiber. “And since our TV service runs on a gigabit network, we can offer access to all our HD channels for no extra charge.”
  • According to Advanced Television, the new channel offerings include: ABC Family, ABC News Now, Disney Channel, Disney Junior, Disney XD, ESPN, ESPN Buzzer Beater, ESPN Classic, ESPN Deportes, ESPN Goal Line, ESPN2, ESPNews, ESPNU, Longhorn Network, Ovation, SOAPnet, TBN, TBN Enlace and Velocity.
  • As previously reported, Starz and Showtime are already offered as optional add-on packages.
  • “Customers taking the Gigabit + package can add on 17 Starz channels for an additional $10 per month,” notes the post. “They can also add on 11 Showtime channels for an additional $10 per month. Popular Hispanic channels will also be available for an additional $5 per month, including Univision Telenovelas, Bandamax, and Telehit.”

Flixster Relaunches with New Focus on Video Discovery and Navigation

  • Time Warner has redesigned Flixster to focus less on its native UltraViolet digital locker and more on helping users find the films they want on any movie rental service.
  • Flixster’s redesign “now highlights purchase and rental options from Vudu, Amazon, and iTunes. And it even shows users when movies are available through subscription services like Netflix,” explains TechCrunch. “That means that pretty much any movie available online can be found on the app — which is big news for movie lovers.”
  • Since Time Warner also owns Rotten Tomatoes, the new Flixster site allows people to filter search results based on Tomatometer rankings. Users can also filter based on year, popularity, genre and other factors.
  • The site redesign also allows one-click UltraViolet registration with Facebook connectivity. Users can earn rewards for tasks like creating a “want-to-see” list or downloading related apps.
  • “Of course, Flixster isn’t the only video discovery engine out there focused on premium content,” notes the post. “There’s Fanhattan, which also hooks into multiple video services, and is available for the iPhone and iPad. In addition to getting the website redesign out of beta, Flixster is working on a relaunch of its mobile apps, which will bring a lot of the same functionality to those devices.”

Bad Timing: Will Blu-ray Lose Out to Streaming Video and the Cloud?

  • Timing, Netflix and Apple may prove to be the three leading causes behind Blu-ray’s demise as a storage device, notes ReadWriteWeb.
  • Timing: Blu-ray came to prominence in early 2008 when Warner Brothers, Netflix, Walmart, and Best Buy decided to drop HD-DVD. But 2008 was also the beginning of the U.S. recession, and many people did not upgrade to a new player and a new TV.
  • Although more people have upgraded since then, a 2011 study shows that 57 percent of households still use standard DVD players.
  • Netflix: Streaming video services now dominate the market. “These days, every game console and most televisions bundle multiple streaming video services, every cable provider offers its own suite of pay-per-view titles, and iTunes offers thousands of films and TV episodes for purchase or rental,” explains ReadWriteWeb.
  • Apple: Since Sony led the drive behind Blu-ray, Apple failed to implement the technology into its devices. This led software publishers to use either DVDs or the cloud to ship their products. Even though Blu-ray would probably be the best option for software providers, consumer’s laptops cannot support the content.
  • For now, Blu-ray will survive because “Americans still like to own things,” suggests the post.
  • “Blu-ray is the most archivable, durable format for HD video storage. So until a cloud-based service emerges as a clear winner, there will be a case to keep that stack of discs by the TV. But all data storage formats run their course, and no amount of data-density improvements can stop the natural progression to streaming media.”

Nikon Officially Unveils Long-Rumored and Much-Leaked D600 DSLR

  • Nikon has finally announced its $2,099 (body only), full-frame, 24-megapixel D600. The new DSLR costs considerably less than the D800.
  • “As such, the D600 — which offers similar build quality and operational ergonomics as the popular DX-format D7000 — is hugely significant,” reports Digital Photography Review.
  • “It matches or exceeds the pixel count of every other full-frame DSLR bar one (the D800) at the sort of price point that up to now, has been almost exclusively the preserve of high-end APS-C cameras.”
  • The review notes that users will be impressed with the new camera’s “5.5fps shooting at full-resolution, 100 percent viewfinder coverage, full HD video capture with an option to record uncompressed footage via HDMI and customizable 39-point AF system.”
  • The review provides detailed specs and side-by-side comparisons to the D7000 and D800.
  • “It’s interesting to note, too, that with the D600, Nikon has significantly undercut Sony’s recent full-frame offerings — the SLT-A99 and Cyber-shot RX1, not to mention presented a daunting challenge to arch-rival Canon,” according to the review.

Palm-Reading Prototype: Intel Turns to Biometrics for Password IDs

  • Passwords for online banking, social networks and email could soon be replaced by the wave of a hand if Intel’s prototype technology comes to fruition.
  • The technology aims “to do away with the need to remember passwords for growing numbers of online services,” reports Reuters. “Intel researchers have put together a tablet with new software and a biometric sensor that recognizes the unique patterns of veins on a person’s palm.”
  • “The problem with passwords — we use too many of them, their rules are complex, and they differ for different websites,” notes Sridhar Iyengar, director of security research at Intel Labs. “There is a way out of it, and biometrics is an option.”
  • “Making laptops, tablets and smartphones responsible for identifying users would take that requirement away from individual websites and do away with the need to individually enter passwords into each of them, Iyengar said.”
  • To answer security issue questions, Reuters explains that “a device using the technology would use built-in accelerometers to detect when a user puts it down, and would then log its owner off to keep unauthorized people from getting in.”
  • According to Intel CTO Justin Rattner, the palm-reading technology will require software and sensors built into devices, but not the development of new chips.

Intel Demos Wireless Docking Technology: Ten Times Faster than Wi-Fi

  • “Looking to the future, all computing will become wireless computing, with an ever-increasing demand for faster wireless communication,” Intel CTO Justin Rattner said in a statement.
  • To address this trend, Intel has worked to develop WiGig, a multi-gigabit wireless docking technology that provides speeds of up to 7Gbps, ten times as fast as current Wi-Fi networks.
  • Intel demonstrated the technology at its annual Intel Developers Forum, claiming “WiGig is on track to becoming the most important next-generation multi-gigabit wireless technology,” Computerworld reports.
  • WiGig is based on the IEEE 802.11n standard and “operates in the unlicensed 60GHz frequency band, which has more spectrum available than the 2.4GHz and 5GHz bands used by existing Wi-Fi products,” the article explains. “This allows wider channels that support faster transmission speeds.”
  • The specification also supports Wi-Fi over 60GHz and a wide range of applications. It enables wireless connectivity using HDMI and display extensions, which could allow laptops to connect to TVs to stream video.
  • “The technology is nearly ready, and with chips from multiple WiGig member companies already in production and certification ready for mid-2013, I would expect a real explosion in the number of WiGig devices coming to market soon,” said Ali Sadri, chairman of the WiGig Alliance.

Emerging Trend: Will Retailers Soon Choose iPads Over Registers?

  • Square COO Keith Rabois claims “nearly all retailers” will soon ditch registers in favor of tablets. Rabois suggests the shift could happen within the next eighteen months.
  • “Everyone will be migrating to iPads and comparable devices, which will be powered by an app — that is, hopefully, Square,” says Rabois.
  • Of course, he could just be overly optimistic because of his ties to mobile payment company Square, but a “survey by the National Retail Federation last fall found that while only 6 percent of retailers said they used mobile point-of-sale devices, half of the respondents said at the time that they planned to adopt such devices over the next 18 months,” writes AllThingsD.
  • Market researcher NPD also reports that 75 percent of merchants plan to buy a tablet within the year.
  • “Essentially, Square’s biggest goal is to enable any merchant, regardless of their resources, to offer a mobile experience similar to the one Starbucks offers today through its application,” explains the article. “In August, Starbucks announced that it was investing in Square, and was going to start using it to process all of its credit and debit transactions.”
  • “Any merchant that is focused on customer service and the ambiance of their experience will be intrigued by what we offer,” claims Rabois.

New Era of Animated Gifs: Will Cinemagraphs Impact Modern Advertising?

  • Online ads will be getting a whole new look thanks to the cinemagraph, an animated gif that “repeatedly replays as a short piece of short video created from dozens of still shots layered on top of each other,” reports Business Insider.
  • “The innovation with a cinemagraph is that most of the image remains still, and only a piece of it moves. The result is a gif of much higher quality, within which is a subtle, often haunting piece of movement,” notes the article.
  • First coined by graphic designer Kevin Burg and photographer Jamie Beck, cinemagraphs have had strong traction on social media sites like Twitter and Tumblr as users have taken to sharing their favorites.
  • Tumblr has even created a new service for advertisers called Tumblr Radar that helps advertisers promote cinemagraphs.
  • The BI post includes a selection of stunning ads — from the likes of Coca-Cola, Tiffany & Co., Bloomingdale’s and Diesel — that effectively use cinemagraphs.

The Promo Bay: Indie Game Developer Tests New Business Model

  • Independent game developer Sos Sosowski has posted a message on The Pirate Bay inviting people to download Torrent versions of his game. He asks that “if you like it, throw some coins in my general direction,” but allows people to download the game for free.
  • Other independent artists have used “The Promo Bay” in the past (the site’s rotating “promotional apparatus” for lesser known artists), but most have been musicians. This is the first time an independent game maker has promoted a product in this way.
  • Sosowski began promoting his game, “McPixel,” in The Pirate Bay’s comments sections. He began “politely asking for donations and offering a few free, legitimate gift codes for those who felt they really couldn’t pay anything,” writes Ars Technica.
  • After the first day of his new business model, Sosowski says he sold over 300 copies of the game for an average of $1.43. He previously sold about 100 copies of “McPixel” for $10 on its first day of availability.
  • “It is up to people to decide how much they would like to pay for the game, and I have no worries,” explains Sosowski. “I am happy that more people can enjoy my game… TPB is one of the most visited sites in the Internet, and simply having a game there is a form of advertisement and promotion.”

Campaigning in Swing States: President Obama Turns to Video Games

  • President Obama is taking to the video game world to campaign for re-election in swing states.
  • The Obama campaign has begun running ads within Electronic Arts games, including the very popular “Madden NFL 13,” in key states like Ohio, Nevada, Colorado, Iowa, New Hampshire and Virginia.
  • “The ads are aimed at encouraging the gaming demographic to take advantage of early voting in these states,” reports Adweek. The campaign is also running “get out the vote” virtual ads within some popular Web games.
  • “It was made clear in the last election that reaching consumers through video games makes a significant impact, so it’s no surprise to see this tactic used once again in such a competitive election,” notes Dave Madden, EA’s SVP of global media solutions.
  • “Video games actively and emotionally engaged consumers in a way that no other medium really can and that translates into a big opportunity for political candidates,” he adds.

Netflix Exec Warns Traditional Release Windows to Encourage Piracy

  • Ted Sarandos, chief content officer for Netflix, recently denounced staggered international release windows as “an open invitation to widespread copyright infringement online,” Variety reports.
  • Sarandos notes the pay window for Lionsgate’s “The Hunger Games” is scheduled at intervals across eight months.
  • “It begins in Latin America on August 18, when ‘Hunger’ is released day and date with VOD and DVD because of the region’s underdeveloped homevid market,” explains the article. “Three months later, ‘Hunger’ comes to Canada, followed a month after that in the U.K. and 90 days after that in the U.S.”
  • “The U.S. will actually have the slowest access to ‘The Hunger Games’ in a subscription model online, which I think is incredibly dangerous for distributors in terms of having this global platform, and global knowledge of when things are available, and regionalized availability dates,” Sarandos suggests. “I think it will only encourage piracy in a way that is going to only grow.”
  • Netflix has access to “The Hunger Games” through Epix, which also has a deal with Amazon Prime.
  • “I do think the gap of time between DVD, VOD and pay TV is getting increasingly frustrating for consumers,” Sarandos adds. “That’s why I will pay more to accelerate it like we did in Latin America. They were more receptive to the deal because their DVD market is almost nonexistent.”

Liberty CEO Recommends the Streaming Business Should Offer Tiers

  • Liberty Media Corp. CEO Greg Maffei suggests that when Starz’s contract with Netflix runs out in February, the Liberty-owned premium channel will pursue other avenues to distribute its movies and programs.
  • Maffei implored Netflix to utilize a tiered payment system to maintain the premium status of Starz products, but Netflix has sworn not to stray from its one-price format.
  • Variety speculates that Maffei could be “alluding to getting a deal done with any one of Netflix’s competitors, whether other subscription VOD market entrants including Hulu Plus, Amazon Prime and the upcoming Redbox-Verizon joint venture, or perhaps other digital content hubs including YouTube, Apple and Microsoft Xbox.”
  • Starz could also emulate HBO Go and implement an on-demand broadband product.
  • “The kind of digital deals that we seek is one that recognizes the premium nature of the business and is compatible as possible with our existing distribution scheme,” explains Maffei. “We’re not interested in a non-premium, non-tiered offering that is commoditizing both Starz’s and some of our content partner offerings.”

New Release Windows: Fox to Lure Sports Fans with Digital HD Initiative

  • 20th Century Fox has begun a big marketing push to promote its new Digital HD initiative. It’s first goal: to lure in sports fans.
  • The new initiative “will make future Fox films available for download about two weeks before their homevid release; there are also 600 library titles,” reports Variety.
  • The focus on sports fans and ESPN in particular reflects Fox’s interest in the young male audience, “an enthusiastic demo for digital downloads, especially via gaming consoles such as PlayStation and Xbox,” notes the article.
  • ESPN fans can expect to see digital download promos splashed across the site’s homepage, on its tablet homepage and on its mobile app.
  • Fox will also promote via major gaming and music sites.
  • The promotion behind Digital HD marks a new direction for Hollywood, which has been tentative regarding digital distribution. “The Digital HD campaign is in keeping with Fox chairman Jim Gianopulos’ leadership on technology, anti-piracy and digital strategies,” explains Variety. “Last year, Fox was the first studio to make Oscar screeners available via free digital download on iTunes.”