The Q4 2011 Nielsen Cross-Platform Report is out, and according to the ratings firm television is still king, but video delivery may be shifting.
Nielsen found that the number of homes with an HDTV grew by more than 8 million in the past year to 80.2 million. Traditional television viewing (live and/or timeshifted) still accounts for more than 33 hours per week.
However, gaming consoles are becoming a “secondary gateway to TV content” — consoles can be found in 45 percent of TV homes — and 33.5 million mobile phone owners now watch video content on their phones.
Interestingly, while time-shifted content experienced an increase in viewing time, mobile phone and Internet viewing were flat year-over-year.
“There are a lot of different ways to look at Nielsen’s data, but one thing is abundantly clear — its research shows that most people still watch traditional TV, and spend a lot more time watching there than on other products,” comments The Verge. “Perhaps the cord-cutting revolution is still a ways off.”
According to IMS Research, Internet-connected television sets will represent 70 percent of all TVs shipped in 2016. CE manufacturers are forecast to earn $117 billion in revenue as a result.
The report notes that Internet-connected sets accounted for one-quarter of global TV shipments last year.
IMS also forecasts that 80 percent of TVs shipped in 2016 will feature built-in Wi-Fi connectivity and nearly 30 percent will incorporate gesture, motion or voice recognition controls.
V2M adds, “the opportunity for video service providers of all stripes is not to be underestimated. Take, for instance, the opportunity to drive upper-tier broadband sales. Higher usage of connected TVs to access, say, Netflix or VUDU, will require increased bandwidth availability. Increases in consumers opting for higher broadband tiers can aid in the quest for OTT monetization, while offsetting increased investment in broadband infrastructure.”
A new iPad app from LA-based Jitterbug.tv is providing children and their parents with kid-friendly access to music content, both audio and video.
The subscription-based service will target an audience aged 2-7 years old and will include music and videos from popular kids artists such as “23 Skidoo, The Jimmies, Laura Veirs, Milkshake Music, The Verve Pipe (yes, they’re a kids’ band now), Recess Monkey, and Gustafar Yellowgold,” details TechCrunch.
“The app is reminiscent of another one we briefly reviewed, called Happly for iPad,” explains the post. “Like Happly, the new Jitterbug app serves up a curated selection of videos, but Happly is focused on more educational fare pulled from YouTube, which it combines with other content, like stories and games. Jitterbug, meanwhile, is all about the music.”
The app is free to download and try for 15 days, but then costs $3.99 per month. Ad-free music will be accessible via the iPad or the Web.
“Revenue generated through the app is shared with the artists featured on the platform,” explains TechCrunch. “In other words, it’s not just a slapped together selection of stuff from YouTube.”
Target was the first brick-and-mortar store to sell the Amazon Kindle, but it will soon pull the device from its physical shelves. It has already removed the Kindle from its website.
The last Kindle shipment will arrive at Target stores on May 13 and once out of stock, that will be the end.
“Target is phasing out Amazon- and Kindle-branded products in the spring of 2012,” explained the retailer in a statement. “We will continue to offer our guests a full assortment of e-readers and supporting accessories.”
It is unclear why Target is phasing out the Kindle, although The Verge suggests “conflict of interest.”
AllThingsD points out there could be a number of reasons: “A contract negotiation gone bad, Target’s decision to open iPad-peddling Apple mini-stores at a few dozen of its locations, or the growing retail rivalry between the two companies. Remember, Amazon’s Kindle Fire is very tightly integrated with the company’s vast online retail store, which competes directly with Target and has a penchant for undercutting the prices of traditional retailers.”
Sony confirms it is working on a “virtual MSO” that could provide TV programming anywhere without geographic limits. It is, however, waiting for clarity on whether Comcast will apply bandwidth caps that could prevent viewers from using such a service.
“These guys have the pipe and the bandwidth,” said Michael Aragon, VP and GM of global video and music at Sony Network Entertainment. “If they start capping things, it gets difficult.”
Comcast says it will offer its Xfinity service without any caps since it uses the company’s own private network. But other services from Sony or Netflix will be subject to caps. The FCC has said they will look into the situation as this may violate Net neutrality.
“Virtually every tech giant out there has been rumored to be exploring a virtual MSO model, though few have confirmed such intent, including Apple, Amazon and Intel,” reports Variety. “Sony is a logical market entrant considering its digital content storefront is made available through a wide range of devices manufactured around the world, from its XBox rival Playstation to Bravia TV sets.”
Nvidia has announced its dual-chip GeForce GTX 690 graphics card, featuring two GK104 graphics processors with Kepler architecture, using 28-nanometer process technology.
“Based on two GeForce GTX 680 graphics processors, the model GTX 690 essentially doubles their power with 3072 stream processors, 256 texture units, 64 raster operating units as well as two 256-bit memory buses,” reports X-bit Labs. “The chip is clocked at 915MHz, whereas 4GB of memory operate at whopping 6.008GHz.”
The card supports “DirectX 11.1, OpenGL 4.2, OpenCL 1.2, stereoscopic-3D, multi-monitor capability, PhysX, 4-way multi-GPU, PCI Express 3.0 and so on,” explains the post.
The GeForce GTX includes an array of innovative features such as efficient cooling using dual vapor chambers, a durable exterior frame made from trivalent chromium-plated aluminum, and a a 10-layer copper printed circuit board.
Priced at $999, the card will be available in limited quantities this week.
According to reports, Microsoft is set to launch a new Xbox bundle next week, that will include a 4GB Xbox 360 console and a Kinect sensor for only $99.
The catch: bundle buyers will have to sign a two-year contract for $15 a month.
That contract will provide access to the Xbox Live Gold service and “potentially some additional streaming content, as well as a two-year warranty,” details Engadget.
“There will be an early termination fee for those wishing to break the contract ahead of its two-year duration, and we understand that Microsoft will position the package as a competitor to Apple TV, Roku, and PlayStation 3,” reports The Verge in a related post. “For those buying the bundle now and getting the cheapest two-year Xbox Live Gold option, that’s about $299.00 + $120 = $420 vs. $459 over a duration of two years.”
With E3 about a month away, and Microsoft developing its own music service, the company wants to get as many consoles into homes as possible.
Amazon Studios has decided to get into the television market with its own original comedy and kids programming.
According to The Hollywood Reporter, starting this week “creative types will be able to upload their TV proposals, with the best projects to be distributed through Amazon Instant Video.”
This open source approach mirrors that of Silicon Valley, which has produced significant results over the years. “Amazon Studios director Roy Price suggests the goal is to democratize the process,” reports THR.
Amazon Studios has previously practiced this model with movies. “Since Amazon Studios’ late 2010 launch, more than 700 test movies and 7,000 scripts have been submitted; 15 movie projects are currently in development,” explains the article.
The TV initiative is being led by Joe Lewis, formerly of 20th Century Fox and Comedy Central, and Tara Sorensen, from National Geographic Kids. The studio plans to option one new project for development each month.
“If it chooses to produce the series, the creator will then receive a $55,000 fee, up to 5 percent of Amazon’s revenues from toy and t-shirt licensing and other royalties and bonuses,” notes THR.
Twitter continues to grow, with more than one million new users each week and more than a billion tweets posted every three days.
Because of that growth, “Twitter is looking for ways to help people find information they will actually care about,” reports The New York Times.
It updated its algorithm and the design of its Discover page with the intention of pointing out “why each featured ‘story’ mattered and to make it easier for people to ‘join the conversation,’” explains the article.
The Discover page focuses on content that is popular amongst those you follow, as well as providing information on which users are sharing which stories.
Discover “is our opportunity to help you understand what’s happening on Twitter right now that’s relevant to you, on top of your timeline or any accounts you’re following. It’s based on what we think your interests are,” said Dick Costolo, Twitter’s chief executive.
Harvard University and MIT jointly announced their new non-profit venture, the edX online learning initiative. A variety of classes from both schools will be offered free of charge worldwide via the Internet.
Both schools contributed $30 million to edX, but the program is still considered an independent entity with its own board.
“The two schools plan to build up the open-source MITx platform which itself was only announced at the end of last year. The goal is to make the platform available to other institutions as well, so they too can jump in and offer their own content,” reports TechCrunch.
MITx provides “embedded quizzes, immediate feedback, student-ranked questions and answers, online laboratories and student-paced learning,” according to the post.
“The drive is not to make money,” said MIT Provost Rafael Reif. “That said, we intend to find a way to support those activities. There are several approaches we are considering, and we don’t want this project to become a drain on the budgets of MIT or Harvard.”
The Academy of Motion Picture Arts and Sciences has announced that it plans to keep the Academy Awards at the former Kodak Theatre located at Hollywood & Highland.
Additionally, Dolby Laboratories has signed on as the 3,400-seat complex’s new name sponsor, in a 20-year deal with owner CIM Group.
Dolby replaces Kodak, which filed for bankruptcy earlier his year. CIM began looking for a new sponsor when Kodak asked to be let out of its contract.
Although AMPAS had entertained offers to relocate the Oscar ceremony, the board voted unanimously in March to stay in Hollywood.
“As part of Dolby’s 20-year naming rights deal with CIM, which begins this summer, the theater will be renamed the Dolby Theatre and the technology company will upgrade it with its latest equipment, including a new sound system,” reports the Los Angeles Times.
“Along with getting its name mentioned frequently in the Oscars broadcasts and coverage leading up to the show,” reports CNN in a related article, “Dolby will use the theater as a ‘world class showcase for Dolby innovation,’ said Ramzi Haidamus, Dolby’s sales and marketing executive vice president.”
The Digital Content NewFronts have featured Web platforms pitching their original content in addition to marketers that are ready to invest in online video and digital ads.
AOL, Google (YouTube), Hulu, Microsoft, Vevo and Yahoo were among those that held major events at the NewFronts. It’s not yet clear how much of the $70 billion brands spend on TV advertising will be diverted, but online video is already being perceived as a powerful marketing tool.
The NewFronts (or new upfronts) were originally conceived as a way “to beat a drum for change,” explains Mark Beeching, chief creative and strategy officer at Digitas, but “now, it’s servicing a need.”
“To woo Madison Avenue, the participants in the NewFronts are playing up similarities between television shows and digital content, particularly online video,” reports The New York Times. “There have been numerous announcements of new original programming, emulating the series format of TV; branded entertainment, in which products are woven into plot lines; and alliances with famous names.”
Ross B. Levinsohn, executive VP for global media at Yahoo, described the NewFronts as “a watershed moment” that he expects will be followed by new trends in online video content and a subsequent shift of ad dollars.
In the wake of cloud storage offerings from HTC, Apple, Amazon, Walmart and most recently Google, LG has announced its new LG Cloud, which offers 5GB of free space and syncing between PCs, Smart TVs and Android phones.
It is expected that storage up to 50GB will be offered, although pricing has not been announced.
“To send a file to the LG Cloud you can use the website, a downloadable client for Windows computers, or via a dedicated Android application,” reports Digital Trends. “The app is free to download from the Android Market, but needs either Android 2.2, 2.3 or 4.0 installed. LG adds that an iPhone and iPad app is in the works, too.”
The PC client includes Folder Sync for duplicating files in the cloud to be shared with other devices. Auto syncing is also available with the Android app for use with photos taken by smartphones.
“Videos uploaded to the cloud can be streamed to your TV or phone, including HD, 2D and 3D content, and all files are converted on-the-fly to match your device,” indicates the post.
In one of the nation’s largest tablet deployments, the San Diego Unified School District is purchasing 25,700 iPads for use in 340 5th-8th grade classrooms plus some high school classes.
The district will spend $15 million on iPads and has already spent more than $35 million on netbooks. Administrators requested switching to the iPad because the devices have no boot up time, have a larger screen, longer battery life and can use a large array of educational apps.
Teachers will receive training in the use of the device and educational apps. The iPads will have access to the district cloud where they can access files from the netbooks and instructors’ tablets.
There are 1.5 million iPads already in use at schools across the country. Experts caution that teachers need to be prepared to incorporate the devices into their curriculum.
Numbers from media researcher IDC indicate that Samsung passed Apple during the first quarter to become the world’s largest smartphone manufacturer. Samsung shipped 42.4 million smartphones while Apple shipped 35.1 million.
However, “Cupertino retains another, far more lucrative title: Smartphone-market revenue leader,” reports AllThingsD. Data from Jupiter Research shows that Apple’s iPhone-based revenue was $22.7 billion, while Samsung’s revenue was $17 billion.
“So while Samsung may be winning on global smartphone shipments, Apple is winning on a more important metric: Smartphone profitability. And for a very simple reason: The company has the highest margins around,” suggests AllThingsD.
During the recent second-quarter earnings reports, Apple announced that its gross margin was 47.4 percent. Samsung’s gross margin was reportedly under 13 percent. “So, while Samsung is dominating smartphone shipments, Apple is dominating the smartphone industry’s pool of profits,” notes the article.