In a surprise announcement yesterday, Facebook revealed its plans to acquire Oculus VR, maker of the virtual reality Oculus Rift headset. Reaction to the $2 billion agreement has ranged from excitement on Wall Street — to bewilderment by those questioning the accuracy of the news — to anger by some early supporters who pledged funds to the startup via its Kickstarter campaign. Others reportedly disappointed in the news include developers who purchased early prototypes of the Oculus Rift hoping to become the first to create games. Continue reading Facebook Plans to Purchase VR Startup Oculus for $2 Billion

Fox, Twitter, and the Advertising Research Foundation recently released a study that suggests people are likely to pick up a new series or start watching a show they previously stopped following after seeing related tweets. The study found that when people remember seeing a TV-related tweet, they are likely to take immediate action. The study included 12,577 people who were recruited on Twitter, and were surveyed within 24 hours of primetime Twitter activity. Continue reading Viewers Pick Up New Shows After Seeing TV-Related Tweets

It has been confirmed that Disney is acquiring Maker Studios, a top YouTube multichannel network, for $500 million, with a performance-based earn-out of up to $450 million. The deal is expected to provide Disney with insight into new patterns of discovery and interaction regarding short-form online videos, especially among millennials. Maker Studios was founded in 2009. The network generates more than 5.5 billion monthly video views from its 380 million subscribers. Continue reading Disney to Acquire Popular YouTube Network Maker Studios

AOL launched its AOL On Network in the United Kingdom this week, the first market outside of North America to gain access to the on-demand video platform. AOL On is a syndication platform that offers curated and original content (currently 750,000 videos). It is an extension of the Be On end-to-end video platform for brands and its Adap.tv video trading platform. Web-only for now, an app for AOL On will be available in the UK early next month via the App Store on iTunes and Google Play. Continue reading AOL On Network: Premium Video Platform Launches in the UK

Blogging site Tumblr, purchased last year by Yahoo for $1.1 billion, has announced its first TV ad partnership. The deal is with Viacom, which plans to pitch cobranded campaigns on Tumblr to marketers tied to programming for cable networks including CMT, Comedy Central, MTV, Nickelodeon, Spike, TV Land and VH1. Viacom will offer campaigns to marketers during the 2014 upfront season that will combine Tumblr’s ad products with content developed by Viacom. Continue reading Tumblr Ad Deal with Viacom to Launch with MTV Movie Awards

Pandora announced that it plans to increase the monthly subscription rate to its premium, ad-free Pandora One service by 25 percent for new subscribers starting in May (an increase from $3.99-a-month to $4.99-a-month). “The costs of delivering this service have grown considerably,” explains the Pandora Blog. “For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53 percent in the last five years and will increase another 9 percent in 2015.” Continue reading Pandora Points to Royalty Costs for Jump in Subscription Rate

Twitter rolled out a new platform this week for hosting video that provides iPhone and Android smartphone users with image previews of video clips in their feeds. “In-line video” allows users to play the clips with a simple click. The company has been working with TV networks and video producers over the past year to make watching video clips — such as sports highlights and show previews — easier for Twitter users. The new feature marks the biggest change to tweets since the automatic preview of photos was introduced. Continue reading Twitter Introduces In-Line Video to Make Watching Clips Easier

We recently reported that Facebook is getting ready to launch autoplay video ads, which will appear in users’ news feeds two to three times per day. The social giant has a clever plan to help ensure the ads are worth watching and possibly minimize the inevitable backlash of such a move. Facebook has developed a prescreening process it hopes will lead to users actually enjoying the video ads and possibly sharing them with friends. The first ads to use the platform are expected to come from Hollywood movie studios. Continue reading Movie Studios to Advertise via Facebook’s New Video Ad Model

According to the annual Digital Music Report released this week by IFPI, which represents some 1,300 record companies worldwide, Google-owned YouTube is now the most popular music service in the world. Moreover, the recording industry is generating more revenue via advertising and royalties from fan-made mashups, lip-syncs and tributes on the popular video site than from officially-released music videos. YouTube currently has more than one billion global users. Continue reading Music Companies Make Money from Fan-Made YouTube Videos

The long-running legal battle between Viacom and Google over YouTube has been resolved. Viacom has been suing Google since 2007, arguing that the online video site violated copyrights. The two companies announced yesterday that they have settled out of court. Specific terms of the settlement were not disclosed, but people familiar with the matter suggest that both sides are now free to explore potential business partnerships, including the possibility of collaboration on advertising technology. Continue reading Viacom and Google Resolve Copyright Litigation Over YouTube

Facebook announced that its autoplay video advertisements will be called Premium Video Ads. Beginning in late April, the marketing tool will deliver 15-second video clips into users’ feeds that will play automatically. According to a Facebook rep, the social media giant wants “to create a captive, but not interruptive experience.” Similar to videos on Instagram, the ads are activated when scrolled over, but audio does not play unless a user clicks on the ad. Facebook will test every video prior to approving them. Continue reading Facebook Plans to Roll Out its Premium Video Ads Next Month

Cartoon Network plans to launch a “micro-network” later this year that will feature 15-second content bites that only play through a smartphone app. The purpose of these videos, polls, games and trivia is to deliver device-specific content. Unlike the current Watch Cartoon Network app, which requires a cable subscription, Cartoon Network Anything will be accessible to everyone. The short form content will be updated regularly to match consumers’ reduced attention span common during smartphone use. Continue reading Cartoon Network Anything App to Experiment with Micro-Content

Digital magazine platform Flipboard has acquired rival app Zite from CNN for an undisclosed amount. Flipboard, a popular cross-platform news reader app, is expected to launch custom magazines linked to a number of CNN shows. It also announced a new advertising partnership with CNN to help monetize combined coverage. CNN bought Zite in 2011 for a rumored $20 million. Flipboard, which generates 2.5 billion page views per month, launched on iOS in 2010 and landed on Android in 2012. Continue reading News Reader Flipboard Strikes Deal with CNN to Acquire Zite

Former NSA contractor and whistleblower Edward Snowden addressed the crowd at SXSW in Austin, Texas yesterday via videoconference from Moscow. Speaking on NSA leaks and data security, Snowden urged tech firms to adopt better encryption methods to help protect users from government surveillance. He also shared privacy tips for citizens, such as encrypting your hard drive, implementing browser plug-ins that prevent online tracking, and using online network Tor, that promises anonymity. Continue reading SXSW: Snowden Talks Digital Privacy, Pushes Better Encryption

Social photo- and video-sharing site Instagram has signed its first major advertising deal with an agency. Instagram is launching a paid ad program with Omnicom Media Group, which agreed to a year-long commitment of up to $100 million that will deliver ads from brands tied to Omnicom’s media and creative agencies. Instagram, which launched in October 2010, was acquired by Facebook in 2012. Today, Instagram says its 150 million active users upload 55 million photos daily. Continue reading Instagram Flexes its Muscles with E-Commerce and New Ad Deal