Facebook will spend between $1 billion and $2 billion on original content in the next year, say analysts, with the goal of transforming Watch, its interactive video channel into a “TV-like habit” that brings in advertising dollars. Tarnished by the fake news it disseminated, Facebook has funded ABC News, CNN, Fox News channel and Univision to create news programs that will go live this summer. The shows will feature personalities such as Fox News’ Shepard Smith and CNN’s Anderson Cooper. Continue reading Facebook to Spend $1B–$2B on Original Content This Year

MoviePass chopped its prices eight months ago, bringing membership to two million people — and the company to the brink of bankruptcy. Parent company Helios and Matheson Analytics, which owns 92 percent of MoviePass, reported that it was down to just $15.5 million in cash at the end of April, with $27.9 million on deposit with merchant processors. The question now is if subscribers can slack off on movie-going before the company runs out of money. A recent SEC filing indicates that the company’s auditor has “substantial doubt.” Continue reading Skyrocketing Membership Threatens the Viability of MoviePass

According to NPD Group, Epic Games’ survival shooter game “Fortnite” and other PlayStation, Xbox and PC multiplayer games are driving sales of headsets to gamers who like to talk to other gamers while they play. NPD, which tracks the $36 billion U.S. videogame industry, added that sales of game accessories and gift cards have now risen to $372 million. This record-breaking sales number is due to the popularity of multiplayer games, said NPD analyst Mat Piscatella, who pointed to “Fortnite,” which has become a smash hit. Continue reading Multiplayer Games Led by ‘Fortnite’ Are Driving Headset Sales

Less than one day after Snap Inc. posted disappointing quarterly results and its stock subsequently plunged, the company revealed that Chinese Internet titan Tencent Holdings recently purchased a 12 percent stake in Snap. Chinese tech companies such as Tencent, Alibaba Group and Baidu have been investing in U.S. firms. According to Morningstar analyst Ali Mogharabi, Snap’s main problems include declining user growth and competition from the more established Instagram. Disappointing ad revenue is reportedly also disappointing investors. Continue reading Chinese Tech Giant Tencent Buys 12 Percent Stake in Snap

Snapchat debuted “context cards” this week, a new feature that helps its users easily make a restaurant reservation or book an Uber ride without having to exit the app. The new feature is designed to keep users engaged with the app and its contextual location-based search. By swiping up from geotagged images while viewing certain stories, users will get related data such as contact info, directions and reviews. Early partners include Bookatable, Foursquare, Michelin, OpenTable and TripAdvisor. Ultimately, more time on Snapchat could mean more advertising revenue for the popular messaging app. Continue reading Snapchat Introduces its New Location-Based Discovery Tool

Electronic Arts, with the debut of “Star Wars Battlefront II” at E3 in Los Angeles this week, plans to abandon the sales of “expansion packs,” which are the maps, quests and other content sold separately for videogames. Instead, it will send customers smaller packs for free, as a way to keep them playing the game, and use microtransactions to sell less expensive virtual goods. The company is basing this switch of sales pipelines on the fact that microtransactions, even in free-to-play mobile games, have garnered billions of dollars. Continue reading EA Switches to Microtransactions for New ‘Star Wars’ Sequel

Amazon is adding video game streaming to its Prime membership, offering subscribers one free channel on Twitch Interactive, which the company purchased for about $1 billion in 2014. Prime members can watch others play video games on Twitch for free. With this move, the Seattle-based company positions itself as a competitor to Sony and Microsoft and signals its greater ambitions in gaming. Amazon also introduced three new online multiplayer games being developed through Amazon Game Studios. Continue reading Amazon Adds Game Streaming to Prime, Unveils New Games

Amazon, which paid $1 billion for Twitch Interactive two years ago, has identified an interesting way to use the platform beyond gaming. The company streamed two original TV pilots on Twitch, which ordinarily hosts game competitions to 10 million daily users. With that user base, Twitch is now an ideal venue for Amazon to test new original shows before committing to a full season. Audiences voted on one of the two comedy pilots: comic book superhero spoof “The Tick” or “Jean-Claude Van Johnson,” starring Jean-Claude Van Damme. Continue reading Amazon Debuts Pilots on Twitch, Remaking It as Test Platform

At E3, Microsoft debuted the 4K video-capable Xbox One S, which is 40 percent smaller and $49 less than the previous $349 Xbox. The new console, also offered as a $400 version for a 2-terabyte hard drive, will unveil as a special edition in August and a standard version by end of year. Microsoft also plans to release a new virtual reality console and cross-platform games. Microsoft is in heated competition with Sony, which has sold an estimated 40 million PlayStation 4 consoles versus Microsoft’s estimated 21 million Xbox Ones. Continue reading Microsoft Unveils New Xbox, VR Plans, Cross-Platform Games

Amazon is taking on Google with the launch of its Video Direct ad-supported video service, which allows anyone to upload original or licensed video content, similar to the YouTube model. Amazon account holders will have the options of offering their content for free, to rent or own, via a subscription channel, or exclusively to Amazon Prime members. The move is another step in Amazon’s push into media as the company continues to invest in original programming and exclusive deals with the likes of HBO and Epix, while introducing a month-by-month subscription option to compete with Netflix. Continue reading Amazon Ramps Up its Google Rivalry with New Video Service