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

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October 17, 2011
  • 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

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October 5, 2011
  • 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

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October 4, 2011
  • 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?

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September 28, 2011
  • 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

By
September 28, 2011
  • 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

By
September 26, 2011
  • 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

By
August 23, 2011
  • 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

By
August 11, 2011
  • 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

By
August 10, 2011
  • 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.”

Best of D9: All Things Digital Conference

By
June 15, 2011

Walt Mossberg and Kara Swisher of The Wall Street Journal hosted the D9 (D: All Things Digital) conference May 31 to June 2 in Rancho Palos Verdes, California. The annual event featured compelling interviews and demonstrations from an array of top media and technology executives representing companies such as HP, Twitter, AT&T, Nokia, Netflix, Disney, Adobe and many more.

The D conference was established in 2003 by columnists Mossberg and Swisher as an annual showcase for technology innovators and big names from the worlds of business, entertainment and occasionally politics. This year the title was “D9” (indicating its ninth year). The conference is known for hosting influential heavy-hitters and its somewhat exclusive nature. Typically, attendance is limited to about 500 guests.

ETCentric readers were quick to forward relevant news items and announcements that emerged during this year’s show. The following is a collection of links to articles and videos submitted by our readers, accompanied by their comments:

 

D9 Video: Eric Schmidt Highlights

  • Google, Apple, Amazon and Facebook are successfully exploiting global platform strategies.
  • Challenge working with entertainment companies since taking content from scarcity to ubiquity.
  • Also need to deal with disintermediation and piracy. On privacy, Google will remain a place where you can do anonymous searches. And committed to insuring you have control over information they have on you.
  • We’re seeing the consumerization of IT that will lead to the death of IT as we know it.
  • There are not sufficient resources to develop for more than the two largest players: Google and Apple.
  • Search is moving from link-based answers to algorithmically-based answers using artificial intelligence.
  • Concerned about a balkanization of the Internet, which will lead to an Internet per country.
  • If you’re concerned about security, use the Chrome browser and use a Mac.

 

Google Shows Off Its Groupon Killer, Launching Tomorrow

  • Video of Eric Schmidt’s demo of Google Wallet and Google Offers.
  • Google is not charging a processing fee but is taking a share of the offer.
  • Credit card companies are willing to upgrade the POS terminals to get benefits of higher security.
  • Lookout Groupon, LivingSocial, etc.!!!

 

Groupon CEO Andrew Mason on Google, Clones and Hubris – But Not on an IPO

  • CEO sees Groupon evolving in three phases so far: One – the Daily Deal, Two – Personalized Deals, and Three – a technology company where they become more integral to a person’s daily life (i.e. wherever they are and whatever they want to do, they can get a deal right now based on the inventory of available deals).
  • Could you use Groupon to sell media?

 

D9 Video: Microsoft’s Steven Sinofsky on Windows 8

  • 95 percent of how the world gets on the Internet is through Windows.
  • Windows 8 will be a “modern” rethink to enable PCs and tablets to satisfy “things they say are solved in an iPad” and still bring all the benefits of Windows.
  • Video demo of Windows 8 showing touch-based UI (can still use mouse too), live tiles.
  • Targeting 2012.

 

D9 Video: Fanhattan Demo

  • Free video discovery app Fanhattan launched at D9 this week.
  • The iPad app serves as a directory and discovery engine, sourcing reviews and ratings from Metacritic and Rotten Tomatoes, while organizing related content from the likes of YouTube, IMDb and Amazon.
  • Also shows pre-release version running on an Internet TV which is capable of creating a branded movie page in this case for Pirates of the Caribbean.
  • It connects to iTunes, Netflix, Hulu and the ABC Player to view TV and movies.
  • CNET review: “This free iPad app sounds simple–it finds stuff about movies and TV shows you want to watch–but the depth of the content, utility of what the site does, and clarity of the interface just puts this app on a different level than anything else I’ve seen.”

 

D9 Video: Hewlett-Packard CEO Leo Apotheker

  • WebOS will be available to other companies and enterprises for their own use.
  • Goal is to create an end-to-end ecosystem that figures out on a single device in the Cloud whether you’re doing enterprise or private work.
  • HP can create a large ecosystem of printers, PCs and tablets amounting to 100 million devices a year itself. They hope to interest others as well.

 

D9 Video: Reed Hastings Highlights

  • On Netflix’s virtuous cycle: the more content they get, the more members they get and they can pay more for content.
  • Consumers want all the new stuff but that’s very expensive.
  • At $8/month, they’re a compliment to the new stuff.
  • The news stuff will remain pay-per-view since has higher margin for content owners.
  • Can grow from 24 million subscribers currently to capture Internet TV and tablet viewers plus a share of the 5 billion active mobile phone users worldwide who like video.
  • Need to stay innovative.
  • Focus on talent density, which is the fewest number of talented people.

 

D9 Video: Twitter CEO Dick Costolo

  • Took three years to send the first billion tweets. Now sends a billion tweets every SIX days!
  • There are over 600,000 developers who have downloaded over 900,000 API tokens.
  • Will look to TweetDeck (recently acquired) as the professional UI.
  • Rolling out a native photo sharing app, relevance sorted search results and web intents which allows you to add a Twitter client into your website. 80 percent of advertisers using promoted tweets renew.
  • Advertisers are experiencing very high engagement rates (VW’s ad: 52%).
  • Focused on success of business, not IPO.

 

DARPA – The Coolest Agency You’ve Never Heard Of: Regina Dugan at D9

  • Regina Dugan’s DARPA t-shirt says “Impossible, Improbable, Inevitable” which describes the progression of their programs.
  • Developed Internet, GPS, stealth, night vision, UAV, MEMS technologies.
  • DARPA’s Mission is the “prevention and creation of strategic surprise.”
  • Encourages programs to have the big success.
  • So that means they can’t fear failure. Fear of failure is the limiting factor.
  • Talks about growth in need for cyber security, new computing architectures, explosive detection system.

 

D9 Tech Demo: Inkling

  • Inkling reinvents the college textbook for the iPad that is both interactive and social.
  • Rather than paying $200 for a book, you can buy it a chapter at a time for far less cost since the content is not re-sold like a physical book.
  • See impressive video demo.

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