Bar Fights: Videogame Fans Muscle their Way into Sports Bars

  • Sports bars have become venues for live Internet videogame matches between professional gamers.
  • The events attract a large numbers of gaming fans that have already been watching alone at home, but are attracted to the energy and screams of other fans. One tournament in July attracted some 85,000 online viewers via Twitch.tv.
  • “This summer, ‘Starcraft II’ has become the newest barroom spectator sport,” according to The Wall Street Journal. “Fans organize so-called Barcraft events, taking over pubs and bistros from Honolulu to Florida and switching big-screen TV sets to Internet broadcasts of professional game matches happening often thousands of miles away.”
  • The “Starcraft” franchise is very popular in Korea, where two cable stations provide dedicated coverage of “Starcraft II” (in addition to “Halo,” “Counter-Strike” and “Call of Duty”). Fervor for public viewings is spilling into the U.S. for the first time.
  • “This feels like the World Cup,” said one Barcraft attendee recently in San Francisco. “You experience the energy and screams of everyone around you when a player makes an amazing play.”

Pay TV Subs Continue to Decline: Consumers Turn to Web

  • As the monthly costs for pay TV have risen from $11.97 in 1986 to $49.70 this year, consumers are looking for inexpensive Web alternatives like Netflix and Amazon.com.
  • Three of the past five quarters have seen an overall decline in pay TV subscriptions, according to SNL Kagan.
  • “Barclays Capital analyst James Ratcliffe predicts that as young people who now rely on Internet-TV alternatives age, penetration of pay TV among occupied homes gradually will decline,” explains The Wall Street Journal. “He sees it dropping to 79 percent by 2018 from 89.5 percent now, although he predicts the pay TV industry won’t lose subscribers in an absolute sense until 2016.”

Auto Manufacturers Announce Collaboration on Data Standards

  • Ford and Toyota announced this week they will work together on the development of standards for Internet connectivity in their vehicles.
  • The collaboration will address Bluetooth and Wi-Fi use, in addition to back-end networking infrastructure for in-vehicle data services.
  • “Standards will be crucial to enable car companies to work with third party developers, device makers, cell phone companies and Internet companies to create applications that are actually compelling to drivers,” reports GigaOM. “Drivers will want to move their data, digital entertainment and Internet services from their homes and cell phones to their cars, and this will rely on a standardized format.”
  • Ford is developing related technology beyond digital entertainment and basic Internet services, with the goal of enabling vehicles to wirelessly communicate in an effort to reduce crashes and fuel consumption.

Internet Radio for Vehicles Set To Explode: Pandora Driving Demand

  • The number of vehicles worldwide with Internet radio service is projected to grow from 168,000 in 2010 to 24 million in 2018, according to IHS iSuppli.
  • U.S. sales alone are expected to move from 149,000 to 10.9 million during the same period.
  • “The next several years will see an explosion in the use of in-vehicle apps in cars, driven by booming shipments of automobiles employing head units designed to integrate Cloud-based content,” says IHS. “These apps, whether built into cars or provided via connected mobile devices like smartphones, will provide a range of infotainment, entertainment, remote diagnostics and navigation services. Internet radio is expected to lead the in-vehicle app revolution.”
  • The study concludes that the following are currently driving demand: Pandora, iHeartRadio, Slacker and Spotify (and in the Cloud: Apple’s iCloud, Google Music and Amazon’s Cloud Drive).

Judge Rules Against MP3tunes: Hollow Victory for Record Labels?

  • While a judge has ruled against MP3tunes and founder, Michael Robertson, for copyright infringement, the details of the ruling may provide online music locker businesses like those from Google and Amazon with a better legal foundation.
  • A key finding is that users, not MP3tunes, had the ability to determine which files were placed in their lockers.
  • Also, it was determined that DMCA does not require one to investigate potentially infringing activity without a specific complaint from copyright holders.
  • “The news is even better for Google and Amazon,” according to Ars Technica. “Those companies’ music locker services do not even offer the broad sideloading functionality that has caused Robertson legal headaches. So if Judge Pauley’s reasoning survives appeal, Google and Amazon will be on solid legal ground. Indeed, those companies may even want to start thinking about whether they’ve been too cautious. For example, they might save a lot of money by taking advantage of the deduplication part of the ruling.”

New LG Stereoscopic 3D Laptop has Dual Camera Webcam

  • LG announced its A530 3D notebook with 15.6-inch stereoscopic display and built-in 3D webcam this week.
  • The A530 features native YouTube support and 3D Space Software, a built-in editing suite for 3D content.
  • The notebook’s options include Intel Core i3, i5 and i7 processors with up to 8GB of RAM and a choice of two graphics cards: an Nvidia GeForce GT 555m with either 1 or 2GB of built-in memory.
  • “The screen also has what the company calls Film Patterned Retarder technology, which it claims produces brighter and flicker-free images compared to screens that use shutter-style glasses,” reports Digital Trends.
  • No price announcement yet, but the device is expected to ship to Europe later this month.

Piracy Surge: Fox 8-Day Delay Draws Negative Consumer Response

  • Since Fox implemented its 8-day delay of content availability on Hulu, downloads from BitTorrent for shows such as “Hell’s Kitchen” and “MasterChef” have increased 114 percent and 189 percent, respectively. Others are watching Fox shows on video sites including YouTube.
  • Moreover, the situation is creating negative consumer reactions as consumers are forced to find content elsewhere.
  • “One of the main motivations for people to download and stream TV shows from unauthorized sources is availability,” reports TorrentFreak. “If fans can’t get a show through legal channels they turn to pirated alternatives.”
  • The post suggests that some consumers have indicated they will be returning to their DVRs and may even dust off their VCRs in response.

Google Android 4.0 Phone Set for Launch: Ice Cream Sandwich, Anyone?

  • Google’s third-generation Nexus Prime smartphone will reportedly arrive in October running the Android 4.0 “Ice Cream Sandwich” OS (in time to compete with Apple’s rumored iPhone 5 release).
  • The device is expected to feature a 720p Super AMOLED HD display, a 4G LTE radio and front/rear-facing cameras, powered by a 1.5GHz processor.
  • The display will reportedly include a 4.5-inch panel with a PenTile layout.
  • According to Digital Trends: “Ice Cream Sandwich (ICS) is said to be not just a simple update from the current version of Android. Instead, ICS is intended to be a multi-device OS, which created a unified user experience across Android tablets, phones and Google TV. This could help solve some of the fragmentation problems that Google has with Android, and is one of the primary weak points in its battle with Apple’s seamless iOS.”

Android and iOS Numbers Continue to Surge While Competitors Slide

  • Based on Q2 statistics, Android has extended its dominance as the most popular smartphone operating system in the U.S., while Apple’s iOS also continues to gain traction.
  • According to NPD, 52 percent of smartphones shipped in the U.S. during the second quarter were running Android (up 19 percent from the previous year). Apple’s iOS earned a 29 percent share, up seven percent from Q2 2010.
  • NPD reports that these figures may have an impact on the potential revitalization of Motorola. “Google’s acquisition of Motorola shifts the balance of power in the handset-patent conflict between Google and its operating system competitors,” said Ross Rubin, executive director of industry analysis for NPD. “Android’s momentum has made for a large pie that is attractive to Motorola’s Android rivals, even if they must compete with their operating system developer.”
  • Market gains for Android and iOS have negatively impacted the competition. Market share for Research In Motion’s BlackBerry OS dropped significantly from 28 percent in the second quarter of 2010 to 11 percent this year. Microsoft’s Windows Mobile also suffered, falling from 10 percent in Q2 2010 to four percent in Q2 2011.
  • Prepaid smartphone numbers are on the rise, which may also impact Motorola (8 percent of prepaid phones were smartphones in Q2 2010, a figure that jumped to 22 percent this year). “Android is also leading the charge in the rapidly growing prepaid smartphone market,” Rubin said. “This was once a key segment for Motorola that the company has an opportunity to reclaim as prepaid carriers build their smartphone portfolios.”

Marketing: LG Asks Consumers to Take the 3D TV Challenge

  • LG Electronics launched  the next leg of its Cinema 3D “Take The 3D TV Challenge” campaign last week at New York’s Grand Central Station.
  • New York City marked the first stop on a new tour (that will also include Chicago and Los Angeles) designed to educate consumers regarding the benefits of 3D LCD TVs and passive glasses.
  • The campaign began earlier this year in Houston “where consumers allegedly overwhelmingly selected LG’s passive 3D glasses-based TVs when matched against similarly sized active-shutter 3D TVs from Samsung and Sony,” reports TWICE.
  • “I think the most important thing we’re doing here is keeping the visibility up on 3D and step-up products in our industry,” said Jay Vandenbree, LG Electronics home entertainment sales and marketing senior VP. “Everything we’ve done has been to get consumers to talk about it, think about it, and to go find out about it. If we can get them to do that and see what their options are in the television business, they might make that choice to spend their discretionary income in our industry.”

Miramax is the Latest to Offer Facebook Movie Rental App

  • Miramax is following in the footsteps of Warner Bros., Paramount and Universal by making its films available on Facebook.
  • The Miramax eXperience will initially offer 20 titles in the U.S. and 10 each in Great Britain and Turkey (available films include “Good Will Hunting,” “Spy Kids,” “Chicago” and “Cold Mountain”).
  • Movies will be made available for 30 Facebook credits (equivalent to $3) and can be viewed on Facebook, the iPad and Google TV.
  • Miramax hopes to build its reach to 150 million+ Facebook friends in the next 18 months.
  • “The iTunes-like nature of Miramax’s Facebook movie rentals (i.e. per-movie charge, rather than a subscription fee) could prove very effective,” reports Social Times. “A lot of online movie watchers aren’t ready to commit to a subscription service like Netflix or Hulu Plus. Renting a single movie from Facebook may be more their style, and a $3 movie rental sounds like a pretty good deal, if you ask me.”

Why is Skype Spending So Much on the GroupMe Acquisition?

  • Skype, which is in the process of being acquired by Microsoft, is purchasing GroupMe, a year-old startup with 20 employees known for its popular cross-platform messaging system that works between smartphones.
  • Skype will reportedly pay $85 million for the company, which GigaOM suggests raises the question: “Why is Skype spending so much money on a relatively small company with a relatively small user base when compared to Skype?”
  • While Skype is a partner with Facebook, it has to be concerned that competition in voice and video communication is becoming intense with Facebook Messenger, Google Huddle and Apple iMessage. (GroupMe adds group messaging.)
  • Skype will still need to decide if it is a product for consumers or a collaboration tool for corporations.
  • ETCentric staffer Dennis Kuba raises another interesting question: “Is voice and video communications becoming commoditized?”

What Can (Should) We Learn from the HP $99 TouchPad Fire Sale?

  • ReadWriteWeb journalist Dan Rowinski posted an interesting op-ed piece this week: “HP’s $99 TouchPad Fire Sale Can Teach Everybody A Lesson.”
  • “Tablets priced at $99 flying off the shelves and what had been a significant headline on Tuesday (Best Buy has 250,000 unsold TouchPads) had completely turned around on Sunday (Good Luck Finding a $99 TouchPad),” writes Rowinski. “It got me to thinking. As much as consumers love their Apple products and the iPad is a terrific device, consumers want something that is price efficient, even if it is a touch flawed. With literally hundreds of thousands of TouchPads sold over the weekend, a significant note should be playing in retailers’ and manufacturers’ heads — opportunities await for those willing to make a sacrifice.”
  • Rowinski speculates that an iPad killer is not in our immediate future. He also suggests that major changes are in the making with the browser-based mobile apps enabled by HTML5. He discusses tablets by Motorola, Samsung, HTC and Research In Motion and how price point may become as significant a factor as available apps. He addresses how Amazon learned valuable lessons with its Kindle and could possibly “recreate the Kindle furor by introducing a tablet into the market at $200 or less.”
  • “The great equalizer will be price,” writes Rowinski. “Amazon and to a certain extent Microsoft with Windows 8 have actually benefited from waiting to enter the tablet wars. They now see the battlefield in front of them and what it will take to make an impact. Quality devices with reasonable prices. Then turn and make money through value-added services.”

Verizon Video: VOD Mobile App Launches for Android this Week

  • Verizon Wireless launches Verizon Video this week — a new version of its video-on-demand application for mobile phones, providing Android users with more than 250 current full-episode TV shows from ABC, NBC, CBS, MTV, Comedy Central, Disney Channel, ESPN, Cartoon Network and others.
  • Premium content is also available including live sports coverage from NFL Mobile, NFL RedZone, NBC’s Sunday Night Football and NFL network.
  • The 4G LTE and select 3G service will cost $10/month or $3 for 24 hours.
  • According to the press release: “Verizon Video updates V CAST Video on select devices and current V CAST Video subscribers will be prompted to update the app the next time it launches. After the upgrade, it will then appear under the name Verizon Video.”
  • The Verizon Video app is powered by RealNetworks.

Windows 8: Viable Solution for the New Post-PC Era?

  • For the first time in many years, Microsoft is facing a serious challenge to its Windows desktop monopoly — not in the form of any operating system, but in the new computing concept of “post-PC.”
  • “The worry is that upstart tablets threaten to drive the computer out of the home, taking the Windows operating system with it,” reports Ars Technica.
  • Microsoft has been in the tablet business longer than anyone, but it has always been an add-on to Windows. Windows 8 will give the company another opportunity to create something new — a full featured PC that not only works on the desktop but on a post-PC device as well.
  • Windows 8 will work with touch devices and not require a stylus. It will support real multitasking. It will run on power-efficient ARM processors. It will still have a huge legacy of software, including Office. It will support a myriad of hardware and accessories.
  • In short, it will be able to do everything the tablet can and much more. Ars Technica concludes: “Still, this tablet-as-a-PC model hasn’t worked well despite 20 years of trying. Microsoft’s decision to stick with it might look like a mistake — why would this approach start working now when it hasn’t before? — but signs suggest it might be more successful this time around.”