Disney Tests the Video Game Waters with Possible Character Franchise

  • The Walt Disney Company is working to replicate the success of “Angry Birds” with its new “Where’s My Water?” iPhone and iPad game.
  • Since its September 22 release, the game has proven rather successful, even taking the top spot from “Angry Birds” for three weeks.
  • “The logic is pretty simple; games are a cost-effective way of not only testing new characters, but also building a fan base for a potential movie,” reports Market Intelligence Center. “Developing the game cost a couple of hundred thousand dollars and about seven people. The time to build the game was less than eight months.”
  • The article points out that the financial risk is minimal when compared to a feature animation project: “Animated movies can easily run in excess of $100 million to produce, so each one is big gamble. If the game continues to find success, Disney can start to plan an animated movie around the game knowing they already have a fan-base for the movie’s characters. Disney will also be able to use its merchandising muscle to create and sell all kinds of toys and clothes around the game’s characters before it ever gets a movie into theaters.”
  • ETCentric staffer Phil Lelyveld adds: “Entertainment technology must now be defined VERY broadly. The ‘Halo II’ launch incorporated thousands of calls to pay phones into a coordinated transmedia market development campaign.”

The Surface: Microsoft Table-Sized Tablet to Ship by Early 2012

  • The Surface 2.0 SDK, demonstrated at last year’s CES, will be released sometime early next year. Pre-orders can be placed with Samsung resellers in 23 countries (including the United States).
  • The $8,400 table-sized tablet, also wall-mountable, is four inches thick and recognizes hands, fingers and objects placed on the screen. It is currently known as the “Surface” or “Samsung SUR40 for Microsoft Surface.”
  • “Running Windows 7 and Surface 2.0 software, SUR40 has a 40-inch screen measured diagonally, 1,920×1,080 resolution, a contrast ratio of 2,000:1, an AMD GPU along with 2.9GHz Athlon X2 dual-core processors, 320GB of storage, and 4GB of memory,” reports Ars Technica. “Ports include Ethernet, HDMI, and 4 USB 2.0 ports.”
  • Microsoft targets the Surface for professional use and envisions it being used in a number of industries including automotive, education, finance, healthcare, hospitality and retail.
  • The original Surface is already in use by the Hard Rock Cafes, Microsoft retail stores, MSNBC, Disney, Sheraton hotels and others.

Bob Iger Named to Apple Board, Arthur Levinson to Serve as Chairman

  • Apple has named Disney chief exec Robert Iger to its board, while Arthur Levinson will take over the chairman post previously held by Steve Jobs.
  • Bob Iger was a friend and business partner of Jobs. The two worked together when Disney acquired Pixar Animation Studios in 2006.
  • Levinson, chairman of biotech company Genentech, has been co-director of the Apple board for six years.
  • “They’re trying to shore up the Disney relationship or strengthen that relationship because it’s an important part of where Apple is going,” said Gene Munster, an analyst at Piper Jaffray Cos, referring to the possibility of a future Apple television and its need for licensing deals. “The content piece is the critical key to the living room,” Munster added.
  • “He is going to make an extraordinary addition to our already very strong board,” Apple CEO Tim Cook said of Iger, commenting that Iger’s role at Disney in harnessing new technology makes him “a great fit for Apple.”

Disney and YouTube Join Forces in Original Video Series Deal

  • Disney and YouTube have announced a partnership to produce original content for online distribution.
  • “Disney Interactive Media and YouTube, a division of Google, will spend a combined $10 million to $15 million on original video series; those shorts will be produced by Disney and distributed on a co-branded channel on Disney.com and YouTube,” reports The New York Times. “The channel will also include amateur video culled from the torrent uploaded to YouTube daily.”
  • Disney hopes that the deal will attract children to its online videos as Disney.com has seen a drop in traffic and Disney Interactive has reported losses over the last four quarters.
  • The goal is to “bring Disney’s legacy of storytelling to a new generation of families and Disney enthusiasts on the platforms they prefer,” explained James A. Pitaro, co-president of Disney Interactive, who added that a complete redesign of Disney.com should be completed by fall 2012.
  • YouTube hopes the deal will help create credibility with parents who are concerned about the site’s content as well as compete with cable providers for advertising revenue.

Competition: Is Google Considering Plan to Enter the Pay TV Business?

  • Google previously announced a high-speed Internet service project in Missouri and Kansas. The Wall Street Journal now reports that insiders indicate Google may expand the project to include a phone and video service, with channels from Disney, Time Warner and Discovery.
  • Google has other ventures in the television business including its new Google TV software update and announced deals to produce around 100 free, ad-supported online YouTube channels.
  • A former Google product director said, “Internet companies like Google will be able to give you [the] same high-quality content” as cable and satellite prices and possibly at lower prices as more TVs connect to the Web.
  • Nothing has been confirmed about Google’s plans to expand the project to wider areas. But if the company follows through, it “could unleash a new wave of competition within the traditional TV business,” suggests WSJ.

Viewer Email: Pixar CEO John Lasseter Answers Fan Questions

  • CEO John Lasseter answers New York Times readers’ emails as Pixar Animation Studios turns 25 this year.
  • Lasseter on Walt Disney: “The films take me to other worlds through the amazing stories and characters…He really inspired me to do my life’s work and to try to entertain audiences in that same way.”
  • On his favorite animated feature: “‘Dumbo’ is my favorite film for many reasons. It’s very tight storytelling. It’s amazing to have a main character not speak at all through the whole movie.”
  • On CalArts: “The original instructors were all these amazing Disney artists that had gone into retirement, and so they came out of retirement to teach us.”
  • On advice for aspiring animators: “Every young person gets so excited about new software packages and new technology. Technology never entertains an audience on its own. It’s what you do with the technology.”
  • Steve Jobs during the making of ‘Toy Story’: “John, you know at Apple when I make computers, what is the lifespan of this product, two years, three years at the most, and then about five years, they’re like a doorstop. But if you do your job right, these films can last forever.”

Hulu Taken Off the Auction Block: Sale of Video Hub Tabled by Owners

  • 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.”)

UltraViolet Announces Global Roll-Out: Studios Get Ready for the Cloud

  • UltraViolet (UV), the digital locker system that allows viewing of content across multiple devices, will roll out on October 11th in the U.S. with an expanded global rollout expected in the months to follow.
  • “All of the major studios are supporting the new cloud-based product, although Disney is not one of the more than 70 official members of the Digital Entertainment Content Ecosystem, which oversees UV,” reports Variety.
  • Warner Bros. exec Justin Herz said this week that his studio will provide half of its movie and TV catalog available on UltraViolet by the end of 2012. The first UV release, Warners’ “Horrible Bosses,” will reportedly be released Tuesday, to be followed by the availability of “Green Lantern.”
  • Fox suggested that “a significant” amount of its content would soon be UV-enabled, while Sony plans to launch with “The Smurfs” and “Friends With Benefits.”
  • “Studios that have signed up for UV hope the new technology will re-ignite the home entertainment market and boost revenues following the collapse of DVD sales and the failure of Blu-ray to generate excitement among consumers,” adds Variety. “UV-enabled discs allow buyers to watch the same content on 12 different devices with an Internet connection, including connected TVs, laptops, tablets or mobiles, once they open a streaming account.”

Will the Kindle Fire Help Amazon Take on Netflix? Content Will Decide

  • Amazon’s launch of the Kindle Fire tablet may have an impact on Netflix, since the new tablet will make it easier for users to watch streaming video content via Amazon.
  • “With its $199 price point the tablet could sell like crazy this Christmas,” reports Forbes. “Users will be encouraged to buy Amazon Prime in order to speed their Amazon purchases and Prime just happens to come complete with Amazon’s streaming video service.”
  • The decision for consumers between Amazon Prime and Netflix will likely be based on pricing and variety of content offerings.
  • Amazon Prime beats Netflix on price, set at $80 a year ($6.67 per month), while Netflix streaming costs $8 a month.
  • Netflix, however, has more variety of content with 51,000 titles currently available for streaming, compared to Amazon’s 11,000.
  • Amazon may soon be able to compete in this regard with added content from Fox and CBS deals. Netflix has similar deals with Fox and CBS and a new DreamWorks Animation deal, but it will lose movies from Sony and Disney with the loss of Starz.
  • Both companies may press Hollywood to license more content for streaming, but continuing to pay more for films could potentially break Netflix, while Amazon has other sources of revenue to cover costs.

Aging Hollywood Movies to get 3D Makeover: Will Audiences Respond?

  • Hollywood is moving to convert its previously-released blockbuster hits into 3D. James Cameron is spending a year and $18 million to convert “Titanic” to 3D; “Star Wars” and “Top Gun” are two others in production.
  • “Like a bunch of aging starlets, some older blockbusters are undergoing major cosmetic enhancement to prepare for their comebacks,” reports Los Angeles Times.
  • Disney recently spent $10 million on the 17-year-old animated feature “The Lion King,” whose surprising box office success during the last few weeks may lead to additional conversions.
  • “For studios, it’s easy to see why spending $10 million or so to render a beloved film in three dimensions holds appeal: There’s a built-in fan base,” suggests the article. “But there are risks too: As the number of 3D films in theaters has ballooned, American audiences have become more selective about which ones they deem worth the premium ticket prices.”
  • Software improvements have made 3D conversions less expensive and, as a result, makes the prospect more difficult for Hollywood to resist.
  • Yet despite its big-name public champions such as Cameron, George Lucas and Tony Scott, there are still those who remain skeptical. The 3D conversion “undercuts the quality of the film and the verisimilitude of the film,” believes Wheeler Winston Dixon, professor of film studies at the University of Nebraska-Lincoln. “It’s to re-direct it and destroy it. This is a poor idea artistically and a poor idea financially.”
  • Either way, the movement is underway and we should expect to see more 3D “makeovers” of older films in the near future.

Disney Announces Mobile App Toys that Turn the iPad into Virtual Play Mat

  • Disney announced this week its AppMATes Mobile Application Toys that use a sensor on the bottom of each toy, which identifies the object to an iPad app (no cable or Bluetooth connection required) and creates a virtual play mat for exploration and games.
  • “The ‘Cars’ toys are meant to be driven across the top of an iPad, interacting with a downloadable ‘Cars 2’ Appmates app, which lets kids drive around courses, race and complete missions,” explains Engadget. “The app will be offered up as a free download through iTunes, and the cars will run $20 for a two-pack — the different toys unlock different features, according to Disney.”
  • “We have cracked the technology code in changing the way kids play with their toys,” said Sunny Lauridsen, director of digital toys for Disney Consumer Products. “Kids will always use toys to play out their favorite Disney stories, but Disney Appmates now allows them to include technology which has become a way of life for them through a beautifully rich app.”
  • According to the press release: “Each toy unlocks different features and content within the app specific to the character, allowing kids to come back over and over to enjoy an imaginative, open-ended play experience using the Appmates toys. Fans can download and test the app by simply using their fingers to drive a virtual car through the world, but the play experience is optimized to come to life with the Appmates toy vehicles.”
  • The toys will be available in October through the Apple Store, Apple Store online, Disney Stores, DisneyStore.com and national retailers.

Disney and James Cameron to Bring Avatar to Theme Parks

  • Walt Disney Parks and Resorts Worldwide has announced a deal with filmmaker James Cameron and producer Jon Landau to bring “Avatar”-themed lands to its parks.
  • The first attraction is expected to start construction in the Animal Kingdom of Orlando’s Disney World by 2013.
  • Cameron’s Lightstorm Entertainment will consult with Walt Disney Imagineering in the design and development of the attractions, which will eventually be built in Disney’s international locations as well.
  • “The parks will not only play off the huge hit movie which dominated the box office for months in 2010, but also benefit from the release to two more movies now in pre-production,” according to The Hollywood Reporter. “Cameron has announced plans to release those movies at Christmas 2014 followed by the second at Christmas 2015.”
  • “‘Avatar’ created a world which audiences can discover again and again and now, through this incredible partnership with Disney, we’ll be able to bring Pandora to life like never before. With two new ‘Avatar’ films currently in development, we’ll have even more locations, characters and stories to explore,” said Cameron. “I’m chomping at the bit to start work with Disney’s legendary Imagineers to bring our ‘Avatar’ universe to life. Our goal is to go beyond current boundaries of technical innovation and experiential storytelling, and give park goers the chance to see, hear, and touch the world of ‘Avatar’ with an unprecedented sense of reality.”

Take a Tour Inside Walt Disney’s Los Feliz Home Theater

  • Walt Disney’s onetime Los Feliz residence — a four-bedroom, five-bath, 6,388-square-foot French Normandy-style house — is currently on the market for $3.65 million, the listing for which provides us with a glimpse of Walt’s 1930s era home theater.
  • CEPro reports that: “Inside the 12-room chateau-style house, Disney converted a guest room, bath and library into a home theater to watch dailies and enjoy private screenings of his films and other classic movies.”
  • As ETCentric staffer Bob Lambert points out: “Not digital, but ahead of its time…”
  • “The projector was a 35mm commercial-grade unit built back in the era,” writes CEPro. “There still is a built-in 4×3 aspect ratio film screen encased in a wood wall at one end of the room. There is a large horizontal center channel in-wall speaker above the screen. In the other end of the home theater, Disney had a small separate projection booth constructed. The projectionist’s room had its own toilet and a small bar. The original sink is still there.”
  • According to the LA Times, Walt’s daughter Diane Disney Miller remembers watching “Citizen Kane” and “Gone with the Wind” in the room.
  • For a little taste of history, check out the brief slideshow included in the CEPro post (a gallery of the house and grounds can also be seen here).

Disney in Discussions to Provide TV Everywhere-Type Authentication

  • Similar to the approach Fox announced last month, Disney is negotiating TV Anywhere deals for ABC-TV shows with distributors. Access would require authentication with a cable ID.
  • Fox provides next day access to viewers who log in with cable IDs, and makes others wait for eight days to view content on Fox.com or Hulu.
  • Disney already has deals with Time Warner Cable and Verizon FiOS to access ESPN content using a mobile app.
  • “Our overall approach…has been to make deals that increase revenue while at the same time protect and respect the channel distribution value that we see today,” Disney CEO Bob Iger said. The company is looking to build authentication into future deals, which Iger explains would “allow access to our programming faster or in a more aggressive window if the customer is a multichannel subscriber.”

Disney Demonstrates Surround Haptics System for Gaming and More

  • Disney Research has developed a new technology that leverages phantom sensations and other tactile illusions to provide a wide range of physical sensations for gamers and film-goers via chairs outfitted with vibrating actuators. The technology is being demonstrated this week at SIGGRAPH in Vancouver.
  • Disney says its Surround Haptics system makes it possible for video game players and film viewers to “feel the smoothness of a finger being drawn against skin, for example, or the jolt of a collision.”
  • The system could potentially have a wide range of applications in movies, music and games, even communication systems for the blind.
  • “Although we have only implemented Surround Haptics with a gaming chair to date, the technology can be easily embedded into clothing, gloves, sports equipment and mobile computing devices,” says senior research scientist Ivan Poupyrev. “This technology has the capability of enhancing the perception of flying or falling, of shrinking or growing, of feeling bugs creeping on your skin. The possibilities are endless.”