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.”

CBS to Pull Shows from Dish Network if Auto Hop Ad-Skipping Continues

  • According to CEO Leslie Moonves, CBS will eventually pull its broadcast network from Dish if the satcaster continues to offer its Auto Hop ad-skipping tool.
  • CBS and other networks are taking legal action to stop use of the Auto Hop feature.
  • “If they want to eliminate our commercials, we will not be in business with them — it’s pure and simple,” says Moonves. “If they want to continue down that line, then we will just not be on Dish. That’s what will happen. We will go elsewhere, and people will take our content.”
  • “Similarly, he said CBS will continue to fight Aereo, a device that offers CBS content on mobile devices in New York without compensating the network,” reports MediaPost.
  • “CBS and other networks are also in litigation with Aereo, but that case carries a different dynamic,” adds the post. “If the networks lose, they can’t pull programming off Aereo, since it plucks it via over-the-air distribution.”

Sony Announces DSLRs and Interchangeable-Lens Camcorders

  • Digital Trends reports on Sony’s newly announced fall line-up: “Let’s start with the one that’s been buzzing around the Net — the Sony RX1. This camera, which looks all the world like the RX100, has a 24.3-megapixel full-frame sensor and costs $2,799 (available November).” The RX1 features a fixed Zeiss 35mm F2 lens.
  • “Not content to introduce one new full-frame digicam today, Sony also announced the SLT-A99, a more classic-looking DSLR with the big sensor, plus a camcorder with one as well, the NEX-VG900,” adds the post.
  • The $2,799 SLT-A99 will be available in October and the NEX-VG900 (pictured here) — “that’ll have the students at USC and NYU film schools drooling” — will ship one month later for $3,299 (body only, accepts E-Mount lenses). Sony has also updated its NEX-VG20 interchangeable lens camcorder with the $1,799 VG30 and $2,699 30H kit.
  • “On top of this trio, there’s the new NEX-6, a Compact System Camera that comes closest to fulfilling the promise of mirrorless cameras,” suggests the post.
  • The $999 NEX-6 (with 16-50mm lens), due in November, is the “first Compact System Camera to use faster phase detect AF rather than contrast detection, giving it DSLR speed and focusing capability in a compact body,” notes Digital Trends. “This means you can shoot 10 fps with continuous AF tracking, just like a high-end DSLR.”
  • For those interested in more information, Digital Photography Review goes hands-on with in-depth analyses and full specs on the Sony RX1, SLT-A99 and NEX-VG900.

Acqui-Hires: Established Companies Look to Start-Ups for Fresh Talent

  • Flailing tech start-ups typically have two options: watch money dwindle as they try to become the next big thing or close up shop and go to work for the big guys.
  • “Acqui-hires” are now becoming common place in Silicon Valley where established technology companies are buying up small start-ups for around $3 million to $6 million to bring their software-engineering talent on board.
  • “Now, with tech start-ups proliferating because of the relatively low cost of getting off the ground, desperation for software talent has moved even small and midsize tech companies to make acqui-hires,” the Wall Street Journal reports.
  • The upside is increased salaries for these coveted engineers and a cohesive team for the big companies. But the downfalls can weigh pretty heavily.
  • “Accepting an acqui-hire offer not only sidelines an entrepreneur’s dreams, but it typically results in negligible, or even zero, returns for the start-up’s investors,” the article explains. “Moreover, the products and services it took long days and nights to create either cease to exist or are folded into the acquirer’s portfolio. Any employees who aren’t software engineers may be left without jobs.”
  • There are also certain catches, like requirements to stay on as an employee for a few years in order to retain offered stocks. “Other forms of compensation might be clawed back as well, and founders might be required to sign noncompete agreements prohibiting them from engaging in the same business for a specified period after leaving the acquirer,” the article states.
  • But even with these setbacks, sometimes the competitive industry can prove even more tough on struggling start-ups. “This is often the alternative to liquidating and sending your résumé out,” says John Coyle, a law professor at the University of North Carolina.

Emerging Start-Up Ecosystem: Is Hollywood the Next Silicon Valley?

  • Hollywood is becoming a hotspot for start-ups. “Incubators and accelerators are popping up everywhere. Venture capitalists are becoming frequent fliers at LAX. Celebrities are stamping their names on new companies. And TV industry executives are quitting their jobs to become entrepreneurs,” according to Business Insider.
  • Many successful entrepreneurs are investing in the Los Angeles start-up ecosystem. Investor Gary Vaynerchuk believes L.A. will eventually surpass both New York and San Francisco as the ultimate start-up location.
  • “I’ve seen more and more founders coming from outside L.A. and moving here; there’s a bigger talent pool now,” notes investor Paige Craig. “I was really impressed at LA Startup Weekend. I hadn’t met half the founders before. And the schools are finally getting their kids to stay.”
  • And Los Angeles is home to the TV and film industries, both of which are “ripe for disruption.”
  • “With the massive growth of YouTube and Hulu and start-ups providing alternative solutions, the TV industry is really changing and it creates opportunity,” explains Greycroft partner Dana Settle. “L.A. has always had a ton of creative business people but tech has always been trumped by Hollywood. Now Hollywood is realizing it needs to be smarter in tech. Hollywood is finally crossing over and it’s really going to charge L.A. to be the next tech center. We’re at the very tip of the iceberg.”
  • Celebrities are also playing a role in the start-up growth by funding various ventures. “Ryan Seacrest, Ellen DeGeneres, Christina Applegate, Justin Bieber and Justin Timberlake are just a few A-listers who have lent their names to support entrepreneurs,” writes Business Insider.

Verizon Announces McAfee Antivirus Mobile Security App for Android

  • Most people do not use antivirus software on mobile phones, but Verizon suggests that should change.
  • A new McAfee-based security application helps prevent malicious attacks on phones, which Verizon claims are “of the same security and privacy threats that plague laptops and desktops.”
  • The McAfee software is targeted at Android customers, as Google has made minimal strides in its efforts to thwart attacks. Only recently did Google implement key features such as remote wiping and device location.
  • “Mobile Security Basic offers McAfee’s antivirus and malicious website detection software, while Mobile Security Premium adds the ability to track what information apps are sending and receiving in addition to allowing users to locate, lock, or remotely wipe an Android device using My Verizon account details,” explains The Verge.
  • The Premium package costs $1.99 per month, while Verizon plans to make the Basic package available for free.

Intel Looks to the Future with Prototype PC That is Also 27-Inch Tablet

  • Intel has developed a prototype “adaptive all-in-one” PC that features a 27-inch screen with 1080p resolution. The PC can be docked as a desktop, detached for use as a tablet, or mounted as a television.
  • The 27-inch touchscreen operates for four hours as a tablet. The PC charges when docked as a desktop. The touchscreen also works when the computer is docked in PC mode.
  • The current model weighs fourteen pounds, but Intel hopes to improve future prototypes by working with screen and battery manufacturers to make slimmer parts.
  • Future prototypes will feature 4K displays with about four times as many pixels as standard HD resolution.
  • Intel also hopes that all-in-one PCs will spark interest in desktop computers. While other companies have put resources and innovation into mobile phones and tablets, Intel believes they have forgotten about PCs. By integrating voice and gesture controls, Intel believes all-in-one PCs can create a valuable market.
  • Intel argues the all-in-one model works well for businesses, where many can collaborate on one large touchscreen. The screen is also conducive for videoconferencing because of its larger screen.

Google to Acquire Photo App Snapseed: New Mobile Competition?

  • Google has agreed to acquire German developer Nik Software, which produces multiple apps for photographers, most notably the iOS app Snapseed.
  • “The $4.99 app won Apple’s coveted iPad App Of The Year award in 2011 for its inventive multitouch photo editing interface, and gained over nine million users during its first year on sale,” The Verge reports. “Nik Software also sells Snapseed for Mac and Windows, and the company is apparently working on an Android app as well.”
  • Sources say the Nik Software team devoted to Snapseed will relocate to Google’s Mountain View headquarters to work on Google+.
  • Although Snapseed hasn’t seen the same traction as Instagram, the app could be integrated into the Google+ mobile app, which “would instantly put [Google+] on par with Facebook and Instagram’s mobile photo-editing capabilities,” the post suggests.
  • “We want to help our users create photos they absolutely love, and in our experience Nik does this better than anyone,” wrote Google+ senior VP Vic Gundotra in a blog post.

Fourth Wall Studios Shoots Immersive, Interactive Stories Called Rides

  • Fourth Wall Studios has integrated second screen interaction directly into its new Web series, “The Gamblers.”
  • “The interactive format — made possible by Fourth Wall’s Rides.tv platform, which augments the first seven-minute episode of ‘The Gamblers’ with text messages, bonus scenes and actual phone calls from the chatty narrators — gives viewers a fun way to play along with a show using some pretty cool technology,” reports Wired.
  • Fourth Wall does not view the experience as a traditional television show, but as a “Ride.” The experience synchronizes multiple devices so that as a viewer watches the Web series on a computer, text messages and phone calls can be received from characters in real time.
  • Much of the interaction involves betting on people’s lives, as the show’s plot involves narrators watching life threatening actions from a distance and handicapping the probability of death. Often, the betting comes through an online tool.
  • Director Rick Heinrichs used Lightcraft Technology’s Previzion system to allow his actors to see the environment around them, even when working with a green screen.
  • “The chief aspect of it is that it’s got camera-tracking technology, so that a computer knows where your camera is on the stage and it’s therefore able to put it into a three-dimensional model inside the computer,” explains Heinrichs.
  • “This is by no means the end product,” he notes. “We’re very involved with engineering something new, and with every iteration we’re making it better.”

Topshop Launches Shoppable Livestream for London Fashion Week

  • Global high street retailer Topshop is offering London Fashion Week fans across the world a livestream of the event and adding social features that allow viewers to interact with the stream and related products.
  • “Viewers will not only be able to click on clothes and accessories to browse color options in real-time, they’ll also be able to change the music, download the show soundtrack from iTunes, snap screenshots to share instantly on Facebook (a feature that was developed with in-house Facebook engineers), cut and share video clips, and order looks and makeup appearing on the catwalk,” Mashable reports.
  • The concept is not entirely new. Burberry has been offering a livestream/shopping experience since 2010 with “elaborate staging” and “panning shots,” the post explains.
  • One exciting feature of Topshop’s new social entertainment and commerce venture is getting the fashion to consumers faster. “Makeup will arrive within 48 hours in the 100+ markets Topshop.com ships to; clothes and accessories will ship in six to eight weeks, well ahead of their January arrival in stores,” the post states. “Topshop will be tracking early purchases to decide how much product to stock in store come January.”
  • “In addition to Topshop.com, the livestream will also be broadcast on large screens at its Oxford Circus flagship in London, the websites of 200+ media partners and pinned to the top of its Twitter page, though it will lack the aforementioned add-ons in all of the latter places,” Mashable writes.

Digital Distribution: Hollywood Finds New Life with Streaming Movies

  • “Hollywood is discovering there’s life after the DVD,” reports Businessweek.
  • Netflix, Amazon, Verizon Communications and Redbox are bidding for the rights to stream movies on mobile devices like Kindles, iPads and TVs, adding life to the home entertainment industry.
  • “These days digital outlets such as Netflix and Amazon vie with Time Warner’s HBO and CBS’s Showtime for movies at the so-called premium cable window, a lucrative stop that comes after films have run in theaters, been sold as DVDs, and appeared on pay-per-view,” according to the article.
  • “That’s given Hollywood the chance to play the services against each other and replace some of the revenue lost with the drop in DVD sales and the decline of rental outlets such as Blockbuster,” notes Businessweek.
  • Earlier this month, Epix signed a multiyear deal with Amazon to provide films for the Prime Instant Video service. The studio-backed pay TV channel “ended its exclusive deal with Netflix and is expected to make as much as $80 million more a year selling the same content to the two streaming rivals and a third venture financed by Verizon and Coinstar’s Redbox, BTIG Research analyst Rich Greenfield says.”
  • Home video sales have taken a significant dive in recent years, falling 16 percent from 2011. “And pay TV outlets are scrambling to find ways to retain viewers now that almost 90 percent of America’s 115 million TV households have the capacity to access a broad catalog of films via the Web,” adds the article.
  • But if these expensive deals with major studios don’t cause significant upticks in subscriber numbers for streaming services, it’s likely that those services will lean more on original programming.