Netflix, which recently reached 50 million streaming customers, now generates more revenue from subscriptions ($1.146 billion) than HBO. According to Netflix CEO Reed Hastings, edging past HBO’s $1.141 billion is a “minor milestone.” SNL Kagan estimates that HBO has 28.7 million U.S. subscribers. However, HBO remains much more profitable than Netflix. In related news, Time Warner Chairman Jeff Bewkes told analysts this week he is open to OTT services. Continue reading Netflix Has More Subscribers, But HBO Remains More Profitable

Kumo, a startup that hopes to offer consumers access to individual channels rather than entire bundles, has raised $50 million in financing. The company may face significant hurdles, since content creators and owners have historically avoided this type of model, fearing a negative impact to their revenue streams. Unlike Aereo’s failed attempt at pairing an antenna with a cloud storage service, however, Kumo is reportedly working to license content for its a la carte approach. Continue reading Kumo Aims to Break TV Bundle by Offering Specific Channels

In a 6-3 decision last month, the Supreme Court ruled that Aereo was in violation of copyright law by using tiny antennas to stream broadcast TV online to subscribers. Since the court said that Aereo acted too much like a cable company to broadcast without paying fees, the startup attempted to embrace the ruling by offering to pay retransmission fees. Whether or not the new approach will work with the networks (or in court), the U.S. Copyright Office is now siding with the content owners. Continue reading U.S. Copyright Office Suggests Aereo is Not a Cable Company

To battle the increasing challenges that music labels have experienced with selling albums, some independent labels and their artists have decided to embrace streaming. Drip.fm, a two-year-old subscription streaming and download service, has partnered with Sub Pop Records to provide subscribers with the label’s albums, singles and special exclusives for $10 per month. The idea is to cultivate and monetize the most loyal fans as streaming continues to popularize. Continue reading Indie Labels Adjust to Growing Popularity of Music Streaming

In the wake of the Supreme Court’s ruling that Aereo’s online TV streaming service violated copyright law, company lawyers have filed a letter with a New York district court claiming that Aereo now views itself as a cable provider. If Aereo can obtain a license, it contends that it is entitled to the same protections as other providers paying royalty fees. This is a dramatic shift in strategy for the company that previously said it would shutter if the Supreme Court did not rule in its favor. Continue reading Aereo Shifts Gears, Tells Court it is Now a Cable Provider

According to a Piper Jaffray report, Netflix remains ahead of Amazon’s Prime Instant Video in terms of licensing content, offering more top 50 movies and top 75 TV shows in recent years. Amazon has been heavily investing in exclusives and original content to increase its offerings. Meanwhile, Hulu delivers almost three times the number of top-rated shows as Netflix. Of the top 75 TV series from the 2013-2014 season, Hulu Plus has 57 percent, Netflix offers 20 percent and Amazon 9 percent. Continue reading SVOD: Analysis Looks at Race Between Amazon, Hulu, Netflix

The Supreme Court ruled against Aereo in a case brought by TV networks, citing violation of copyright laws. Aereo, which provided an Internet-based alternative to cable by capturing broadcast signals on tiny antennas and transmitting them to subscribers, has since suspended its operations. Meanwhile, rivals such as Simple.TV and Mohu are moving in, and hope to avoid the ruling by selling over-the-air antennas to their subscribers along with hardware to access streaming services. Continue reading Aereo Competitors Moving In Following Supreme Court Ruling

A full 32-page version of YouTube’s contract for its upcoming premium music subscription service has been leaked online through the blog Digital Music News. So far, the most controversial clause included in the contract concerns the ability of major labels to agree upon lowered rates and therefore influence the rate of royalties paid to independent labels. The leaked contract was drafted to send to these independent labels, but is not a reflection of the actual signed deals.  Continue reading Contract for YouTube Premium Music Service Leaked Online

The U.S. Supreme Court has ruled in favor of broadcasters in a decision that could have far-reaching implications for the media industry. The court found that online video startup Aereo violated copyright law by allowing its subscribers to watch and record over-the-air broadcasts from electronic devices via a system of miniature antennas. Broadcasters including ABC, CBS, FOX and NBC have been battling Aereo, arguing that the startup was accessing their programming without authorization. Continue reading Supreme Court Rules Against Aereo in Favor of Broadcasters

Content from indie artists could disappear from Google’s YouTube “in a matter of days.” As YouTube prepares to launch its ad-free streaming music service, it also plans to block videos from independent labels and artists that choose not to sign up for the new subscription offering. While YouTube has signed licensing deals with the major labels, it says it will block others from using its entire platform if they do not agree to terms of the upcoming premium service. Continue reading YouTube to Block Artists Who Don’t Sign Up for New Service

With its planned Internet-based TV service, Dish is targeting consumers who are frustrated by traditional pay TV. Speaking at the TV of Tomorrow Show in San Francisco yesterday, Dish exec Adam Lowy said that “cord cutters, cord nevers and what we call cord haters” are on the company’s radar. The service plans to initially launch on Dish’s existing infrastructure, but will later move to an all-IP system. Dish is currently talking to television networks about licensing content for the new service. Continue reading Dish Targets Cord Cutters with Upcoming Internet TV Service

According to Netflix CFO David Wells, the streaming service plans on spending $3.2 billion on streaming content in 2014. Netflix acknowledged that a large fraction of the currently available material is not necessarily popular with its audience and plans to spend more money on shows with higher potential. A content shift through the next few quarters toward more original series along with licensing exclusive and higher-rated shows will account for this extra spending. Continue reading Netflix Turns to Original Series and Licensing 5-Star Content

AT&T has agreed to acquire DirecTV for $49 billion. The two companies’ boards approved the agreement yesterday. The deal, which comes just three months after Comcast’s $45 billion agreement to purchase Time Warner Cable, will create a new pay TV giant as video consumption continues to move online. Combining AT&T and DirecTV would result in a company with 26 million pay TV subscribers in the U.S., second only to Comcast and Time Warner Cable if regulators approve their deal. Continue reading Pay TV: AT&T Agrees to Purchase DirecTV in $49 Billion Deal

Apple and Google have agreed to drop all lawsuits between the two tech giants. According to a joint statement, there is no cross-licensing agreement as part of the truce, but the companies would work in “some areas of patent reform.” The announcement effectively ends about 20 lawsuits and covers Apple’s patent litigation with Google’s Motorola unit, which started four years ago and Google later inherited when it purchased Motorola Mobility. However, the deal does not affect Apple’s patent litigation against Samsung. Continue reading Apple and Google End Patent Battle, Agree to Work on Reform

In a first of its kind deal for Time Warner’s HBO, the premium cable channel has agreed to license older episodes of its programming to Amazon Prime’s subscription streaming service. The agreement is the first such HBO deal with an online video provider, and will make original series such as “The Wire” and “The Sopranos” available for online streaming. Prior to this deal, HBO shows were only available for digital purchase through Amazon or Apple’s iTunes, or via rental services such as Netflix. Continue reading HBO Signs Exclusive Licensing Pact with Amazon Prime Service