“It might sound crazy, but I think there’s an argument that Facebook could become a leading enterprise software vendor for the webscale world if the social-networking kingpin is so inclined,” writes Derrick Harris for GigaOM.
“As we continue to consume web applications and cloud services and webscale data centers become more common,” he adds, “Facebook’s tools and expertise could be a cash cow.”
The article details a few examples of new tools and systems Facebook has integrated to manage its massive infrastructure.
“Facebook could stand to make a lot of money by consulting with customers on how to build their data centers and architect their applications, and then selling them the software tools to keep those apps up and running,” writes Harris, also noting there is no indication that Facebook will ever pursue selling webscale software.
Innovative Icelandic musician Bjork is combining technology and music with her release of the first ever “app-album.”
The collection features games, visualizations and songs that allow fans to interact with the music in a unique way.
“The main ‘Biophilia’ app is available for free,” reports CNN Tech. “Each sub-application, which contains a song and some sort of interactive game, costs 99 cents, or $9.99 for the whole album. A non-app version of the album also is available.”
“Apps and iPads are just tools — they have to be human and they have to have soul,” comments the singer.
Article includes podcast and transcript of CNN Radio interview with Bjork.
Check out this fascinating TED presentation on data visualization, crowd-sourced collaborative art projects, and the interface as a narrative device.
“We’re collecting and creating all kinds of data about how we’re living our lives and it’s enabling us to tell some amazing stories,” says digital artist Aaron Koblin. The TED description suggests, “his works brilliantly explore how modern technology can make us more human.”
Compelling tweet from the opening: “19th Century culture was defined by the Novel, 20th Century culture by Cinema — the culture of the 21st Century will be defined by the Interface.”
The second half ties in with interactive, collaborative music videos featuring Johnny Cash and Arcade Fire, earlier reported by ETCentric.
Google is expected to roll out its own music store in the next few weeks.
It will reportedly tie into the company’s Music Beta service that allows users to upload and store their music collections.
Music Beta was announced after launch of Amazon’s unlicensed service, Cloud Drive. Also worth noting: “Apple got licenses for iTunes Match, which will instantly link a user’s songs to Apple’s master collection.”
“Its earlier negotiations with music companies, for a so-called smart locker service — a Web storage system that lets people link their digital music collections to a vast central database — broke down over financial terms and the music companies’ complaints that Google was not doing enough to curb piracy,” reports The New York Times.
Oren Jacob, Pixar’s former CTO, talks about the company’s keys to their success: Honesty about the quality of their films, a willingness to address problems quickly, looking at the source of problems, storyboarding out the issues, and hiring people that fit the company culture.
The story behind the overhaul of “Toy Story 2” was presented regarding the importance to: “Be honest with yourself. When the work isn’t great, say so. Then get to work making something you can believe in.”
Fast Company also points out the company’s hiring philosophy: “When Pixar is evaluating potential hires they look for three traits: humor, the ability to tell a story, and an example of excellence.”
And one of the more interesting lessons (applicable to a range of businesses): “Sketching storyboards and acting out scripts are the currency of ideas at Pixar. Try a variety of different media to find what works best for you and your organization.”
After months of bidding, Hulu’s owners — News Corp., NBCUniversal, Disney and Providence Equity Partners — have decided to stop its sale.
“Since Hulu holds a unique and compelling strategic value to each of its owners, we have terminated the sale process and look forward to working together to continue mapping out its path to even greater success,” explained the partners in a short statement. “Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu.”
In a related TechCrunch post, it was suggested that media companies saw more value in retaining licensing fees than selling them.
Bidders were not willing to pay more for Hulu knowing that the costs for content rights would increase dramatically after the two year period being sold. (Google reportedly bid $4 billion, but wanted streaming rights for longer than the guaranteed “couple of years.”)
The Hollywood Reporter suggests that Google+ may be losing momentum in its foray into social networking, citing data analytics from Chitika recently published in The Next Web. Facebook and Twitter are currently maintaining dominance in the social space.
“Our monthly referrals from there are down 38 percent since their peak, while Facebook referrals are up 67 percent and Twitter referrals up 51 percent over the same period,” reports TNW.
After Google+ attracted 10 million users in less than a month, expectations rose. But according to Chitika, Google+’s initial spike in traffic was short lived, leveling off just four days after its launch.
As one Google engineer stated on his Google+ page, the social network is “a prime example of our complete failure to understand platforms” and “a knee-jerk reaction” to Facebook.
“Bottom line: Facebook is still the king of social networks and will be for the foreseeable future,” adds THR. “Plan your marketing campaigns accordingly.”
In a related post from Gizmodo, Google+ claims 40 million “users” — but the question remains regarding how many are actually using it: “‘Users’ here, being loosely defined, since Google+ is a relative ghost town of privately shared links about how Google+ is a ghost town.”
A new study from Nielsen shows that approximately 40 percent of tablet and smartphone owners use their devices on a daily basis while simultaneously viewing television. The figures jump to 70 percent for users who do the same several times a week.
Most of these viewers are primarily checking email, followed by surfing information and accessing social networks, suggesting strong potential for second-screen applications.
The study suggests users are accessing social networks more than websites with information related to the TV program. “Unfortunately, the study doesn’t break down if people are 1) participating or just listening to social conversations and 2) if the conversations are related to the TV program at hand,” reports Lost Remote. “But it’s probably safe to say that more viewers are more inclined to talk about (or listen to) conversations about a TV show than proactively look up expanded content about it.”
Successful second-screen apps should bring together “social conversations, expanded content and interactive (even synchronized) advertising,” suggests the article. “Compelling second-screen experiences, in theory, will move the needle more in the ‘related’ direction, making TV viewers more engaged overall.”
If consumers take to the new virtual personal assistant technology Siri, featured in Apple’s iPhone 4S, we may see significant change to other devices such as the TV remote control.
Norman Winarsky, VP of ventures at SRI (involved in the development of Siri), told MIT’s Technology Review that, “within a decade, virtual personal assistants would be ubiquitous, integrated into the fabric of many devices,” and that their value could hike into the 100 billion dollar level.
“Wouldn’t it be nice to finally do away with the remote control, a device that begins to look so clunky and antiquated in our era of iEverythings?” asks Technology Review. “Apple has not announced any plans to bring Siri to devices other than the iPhone 4S, but the idea doesn’t seem so farfetched. It’s quite possible that the next refresh of the Apple TV could use a speedier A5 dual-core chip, speculates Cult of Mac — which would give the device the processing power necessary to run Siri.”
According to the article, Siri offers much more than just voice recognition: “Siri is good at parsing the words you say, but more importantly, its impressive artificial intelligence is able to discern their meaning, and take appropriate actions… As smart TVs become a next battleground for Internet-connected devices, let’s hope our remote controls get smarter, too.”
Netflix returned from MIPCOM last week with several new foreign TV shows it hopes will draw interest from its 25 million subscribers.
Programs include Norwegian gangster drama “Lilyhammer” starring Steve Van Zandt, French/German co-production “Borgia,” and the British supernatural drama “Being Human.”
The slate of foreign programming will join the remake of BBC drama “House of Cards” as Netflix turns to original, first-run drama series.
“Netflix has already committed to a second season of both ‘Borgia’ and ‘Lilyhammer,’ suggesting its taste for original and foreign-made fare is no passing fancy,” according to The Hollywood Reporter. “The company is also in a bidding war with Showtime and Hulu for the rights for the relaunch of cult comedy series ‘Arrested Development.'”
Netflix chief content officer Ted Sarandos points out the strategy is in response to customer demand, since TV shows account for 50-60 percent of total viewing on Netflix.
“We’ve moved very aggressively into this space,” Sarandos said. “The growing audience for these 1 hour serialized dramas is typically on pay TV: Showtime, HBO or Starz, those ones who are least likely to want to sell their shows to me on our (second-run) season-after model. So we have to develop the muscle to create and distributing these shows ourselves.”
The GSMA released research this week that outlines the market opportunity and revenue potential for connected devices.
According to the press release: “The research shows that the number of total connected devices is expected to increase from approximately 9 billion today to more than 24 billion in 2020, and within that, mobile connected devices will grow 100 per cent from more than 6 billion today to 12 billion in 2020.”
This would create a $1.2 trillion market opportunity for the wireless industry, seven times what is expected for 2011.
“We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives,” said Michael O’Hara, chief marketing officer for GSMA. “In this new Connected Life, mobile will transform society and will have a profound effect on the way we interact not only with each other, but also with our surroundings.”
These opportunities include increased connectivity with appliances, consumer electronic devices, and across sectors such as the health and automotive industries.
In a related story, Jon Peddie Research predicts that 300 million tablets will ship in 2016. Also, the firm expects three quarters of a billion smartphones will ship in 2016 and there will be increases in handheld game consoles and e-book readers.
“The processors powering these devices will be truly amazing, consuming remarkably little power, built in the latest nanometer technology, and delivering unbelievable performance and functionality,” suggests the Jon Peddie report. “And although all of the devices will share some functionality and capabilities, no single device will kill any of the others…at least immediately. Each device will have a different form, primary function, and price. All will be connected all the time, and most will have 3D displays and cameras.”
New research from Rice and Duke universities challenges conventional wisdom by suggesting that the removal of digital rights management restrictions can actually decrease music piracy.
“Marketing professors Dinah Vernik of Rice and Devavrat Purohit and Preyas Desai of Duke used analytical modeling to examine how piracy is influenced by the presence or absence of DRM restrictions,” explains the press release. “They found that while these restrictions make piracy more costly and difficult, the restrictions also have a negative impact on legal users who have no intention of doing anything illegal.”
“In many cases, DRM restrictions prevent legal users from doing something as normal as making backup copies of their music,” said Vernik, assistant professor of marketing at Rice. “Because of these inconveniences, some consumers choose to pirate.”
According to the research paper, copyright owners don’t necessarily benefit from less piracy. “Decreased piracy doesn’t guarantee increased profits,” Purohit said. “In fact, our analysis demonstrates that under some conditions, one can observe lower levels of piracy and lower profits.”
The press release includes a compelling statement from the late Steve Jobs: “Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy.”
Creative COW asks if film is getting ready to fade to black: “While the debate has raged over whether or not film is dead, ARRI, Panavision and Aaton have quietly ceased production of film cameras within the last year to focus exclusively on design and manufacture of digital cameras. That’s right: someone, somewhere in the world is now holding the last film camera ever to roll off the line.”
“The demand for film cameras on a global basis has all but disappeared,” says Bill Russell, ARRI VP of cameras. “If you talk to the people in camera rentals, the amount of film camera utilization in the overall schedule is probably between 30 to 40 percent.”
While film may not be dead, it is most certainly on the decline. Digital production is on the rise, and for those still interested in shooting on film, used cameras are available.
“Almost nobody is buying new film cameras,” says Aaton founder Jean-Pierre Beauviala. “Why buy a new one when there are so many used cameras around the world?”
Stereoscopic 3D production may also be “accelerated the demise of film” says Beauviala, since it is “a nightmare to synchronize two film cameras.”
Russell predicts that film will eventually disappear, although the exact date is unknown. Phil Radin, executive VP of worldwide marketing at Panavision suggests the timing will be decided by the availability of resources. “Film will be around as long as Kodak and Fuji believe they can make money at it,” he says.
Early reviews to Martin Scorsese’s “Hugo” — the director’s first foray into 3D production — are so enthusiastic that Steve Pond at TheWrap suggests, “it left one question lingering in the air: Has Scorsese just saved 3D?”
Pond was reacting to an early screening of the unfinished film at this week’s New York Film Festival, after which attendees raved about the experience. Katey Rich at CinemaBlend described it as, “probably the most gorgeous live-action 3D film ever made.”
Prior to the screening, the noted director explained that his film was not quite completed and would still require additional work with color correction, visual effects, music and sound.
That didn’t seem to deter a flood of positive reactions tweeted immediately following the screening. For example: “Hugo is outstanding. 1st film where 3D is a vital organ of the overall narrative. Brilliant and at its heart, profound.” Another: “In Hugo, Scorsese experiments w/ 3D the way Melies pioneered SFX. The simple first 1/3rd is a showcase for the power of visual storytelling.”
Streaming music service Spotify, which recently partnered with Facebook, saw its revenue more than quintuple last year. However, the British company still showed losses totaling $42 million, an increase from $26 million in 2009.
“Spotify’s performance has been closely monitored by the music industry, which sees it as a kind of litmus test for the viability of digital music by subscription, which pays labels each time a listener streams a particular song,” reports The New York Times. “That system brings in lower royalties per song than downloads, but with a large enough listener base could in theory bring in substantial amounts.”
Spotify subscriptions cost about $10 to $15 per month and includes an ad-supported free version. Daniel Ek, Spotify’s chief executive, recently announced that the service had reached the 2 million mark with paid subscribers, although there are believed to be more than 10 million total users.
“It might sound crazy, but I think there’s an argument that Facebook could become a leading enterprise software vendor for the webscale world if the social-networking kingpin is so inclined,” writes Derrick Harris for GigaOM.
