TV Viewers Like their Tablets and Phones: Stay Tuned for More Innovation

  • A new study from Nielsen shows that approximately 40 percent of tablet and smartphone owners use their devices on a daily basis while simultaneously viewing television. The figures jump to 70 percent for users who do the same several times a week.
  • Most of these viewers are primarily checking email, followed by surfing information and accessing social networks, suggesting strong potential for second-screen applications.
  • The study suggests users are accessing social networks more than websites with information related to the TV program. “Unfortunately, the study doesn’t break down if people are 1) participating or just listening to social conversations and 2) if the conversations are related to the TV program at hand,” reports Lost Remote. “But it’s probably safe to say that more viewers are more inclined to talk about (or listen to) conversations about a TV show than proactively look up expanded content about it.”
  • Successful second-screen apps should bring together “social conversations, expanded content and interactive (even synchronized) advertising,” suggests the article. “Compelling second-screen experiences, in theory, will move the needle more in the ‘related’ direction, making TV viewers more engaged overall.”

New Studies Make Predictions for the Future of Connected Devices

  • The GSMA released research this week that outlines the market opportunity and revenue potential for connected devices.
  • According to the press release: “The research shows that the number of total connected devices is expected to increase from approximately 9 billion today to more than 24 billion in 2020, and within that, mobile connected devices will grow 100 per cent from more than 6 billion today to 12 billion in 2020.”
  • This would create a $1.2 trillion market opportunity for the wireless industry, seven times what is expected for 2011.
  • “We are entering the next phase in the development of the mobile industry, one where we will see mobile connect everything in our lives,” said Michael O’Hara, chief marketing officer for GSMA. “In this new Connected Life, mobile will transform society and will have a profound effect on the way we interact not only with each other, but also with our surroundings.”
  • These opportunities include increased connectivity with appliances, consumer electronic devices, and across sectors such as the health and automotive industries.
  • In a related story, Jon Peddie Research predicts that 300 million tablets will ship in 2016. Also, the firm expects three quarters of a billion smartphones will ship in 2016 and there will be increases in handheld game consoles and e-book readers.
  • “The processors powering these devices will be truly amazing, consuming remarkably little power, built in the latest nanometer technology, and delivering unbelievable performance and functionality,” suggests the Jon Peddie report. “And although all of the devices will share some functionality and capabilities, no single device will kill any of the others…at least immediately. Each device will have a different form, primary function, and price. All will be connected all the time, and most will have 3D displays and cameras.”

Could Removal of DRM Restrictions Actually Decrease Music Piracy?

  • New research from Rice and Duke universities challenges conventional wisdom by suggesting that the removal of digital rights management restrictions can actually decrease music piracy.
  • “Marketing professors Dinah Vernik of Rice and Devavrat Purohit and Preyas Desai of Duke used analytical modeling to examine how piracy is influenced by the presence or absence of DRM restrictions,” explains the press release. “They found that while these restrictions make piracy more costly and difficult, the restrictions also have a negative impact on legal users who have no intention of doing anything illegal.”
  • “In many cases, DRM restrictions prevent legal users from doing something as normal as making backup copies of their music,” said Vernik, assistant professor of marketing at Rice. “Because of these inconveniences, some consumers choose to pirate.”
  • According to the research paper, copyright owners don’t necessarily benefit from less piracy. “Decreased piracy doesn’t guarantee increased profits,” Purohit said. “In fact, our analysis demonstrates that under some conditions, one can observe lower levels of piracy and lower profits.”
  • The press release includes a compelling statement from the late Steve Jobs: “Why would the big four music companies agree to let Apple and others distribute their music without using DRM systems to protect it? The simplest answer is because DRMs haven’t worked, and may never work, to halt music piracy.”

Researchers Convert the iPhone into Affordable Medical Microscope

  • UC Davis researchers have determined how to transform the iPhone camera into a microscope with details up to 1.5 microns using a 1mm ball lens that offers 5x magnification.
  • The team “has one-upped the competition by making the iPhone into a 350x microscope for very little money,” reports TechCrunch. “Now you’ll be able to send people Instagrams of your blood cells.”
  • “The field of view is very small and there’s distortion to deal with, but by combining the in-focus areas of several pictures you can get a clear enough image to identify cell types, make counts, or even take spectroscopic readings,” comments the article on the image capturing process.
  • The post includes compelling side-by-side images comparing a commercial microscope with the iPhone camera set-up. There is also a link to the UC Davis paper, “Cell-Phone-Based Platform for Biomedical Device Development and Education Applications.”
  • “It may not be a mobile clinic, but in areas where money and electricity are hard to come by, an iPhone could be a valuable diagnostic tool,” suggests TechCrunch.

Facebook Shares Designs: Will Cloud Hardware Get Cheaper and More Efficient?

  • Facebook launched its Open Compute Project as an effort to open-source the technology of its 147,000-square-foot data center that opened in Oregon in April.
  • “It published blueprints for everything from the power supplies of its computers to the super-efficient cooling system of the building,” reports MIT’s Technology Review. “Other companies are now cherry-picking ideas from those designs to cut the costs of building similar facilities for cloud computing.”
  • Although the concept of sharing designs and allowing other companies to build similar cloud-computing facilities at a lower cost may seem altruistic, it also serves as “an attempt to manipulate the market for large-scale computing infrastructure in Facebook’s favor,” suggests the article.
  • “The company hopes to encourage hardware suppliers to adopt its designs widely, which could in turn drive down the cost of the server computers that deal with the growing mountain of photos and messages posted by its 750 million users,” explains Technology Review. “Just six months after the project’s debut, there are signs that the strategy is working and that it will lower the costs of building — and hence using — cloud computing infrastructure for other businesses, too.”
  • Frank Frankovsky, Facebook’s technical operations director and a founding member of the Open Compute Project, notes that the project opens the flow of ideas necessary to improve cloud technology. He is encouraging others to contribute new ideas and improvements to the current designs.

Will Big Data Help Shape the Next Market Winners and Losers?

  • Forrester Research defines big data as “techniques and technologies that make handling data at extreme scale affordable.” The research firm estimates that companies effectively utilize less than 5 percent of available data, and further suggests that big data will help companies use information to dominate the competition in their market.
  • “It seems that every week another vendor slaps ‘big data’ into its marketing material – and it’s going to get worse,” writes Forrester analyst Brian Hopkins for Forbes. “Should you look beyond the vendor hype and pay attention? Absolutely yes! Why? Because big data has the potential to shape your market’s next winners and losers.”
  • Big data is not only concerned with the volume of information but also in velocity, variety and variability of data, since “data is usually generated so fast that you need to constantly capture more of it to be valuable for some decisions.”
  • The write-up in Forbes is promoting Forrester’s new report, “Expand Your Digital Horizon With Big Data.” From the executive summary: “At extreme scale, traditional data management and business intelligence (BI) become impractical, and your business does not get what it demands — more insight to drive greater business performance. Big data helps firms work with extremes to deliver value from data cost-effectively.
  • However CIOs must understand that this is not business as usual. In fact, big data will disrupt the data management landscape by changing fundamental notions about data governance and IT delivery. Take the time to understand big data as well as its implications and begin a balanced approach that considers more than just the technology hype.”

The Pros and Cons of Twitter: Analyzing and Manipulating Tweets

  • Twitter’s 200 million tweets per day are being analyzed to monitor political activity and employee morale, track flu outbreaks and food poisonings, map changes in moods around the world, predict box-office success or failure for new movies, and predict changes in the stock market.
  • Hewlett-Packard’s Social Computing Laboratory used Twitter to successfully forecast the box office of 24 films by analyzing “the intensity of the word-of-mouth” about them on Twitter. They are now looking at doing the same for other products.
  • The Twitter users are younger adults, more urban and less likely to have children, but there is enough diversity to make judgements from the Twitter’s 200 million user stream.
  • Twitter is also being used to manipulate public opinion. “Twitterbots” have been created to automatically generate messages and thereby attract large followings by building relationships with unsuspecting users.
  • “Network sociologists are worried that these newest contrivances may offer others a powerful way to manipulate people through Twitter on an even larger scale,” reports The Wall Street Journal. “Doing this on Twitter with a thousand accounts or a million accounts is the next step,” said Indiana University computer scientist Jacob Ratkiewicz.

Pegasus Global to Build Entire City in New Mexico for Technology Testing

  • Tech development firm, Pegasus Global Holdings, recently announced its plans to build a “fake” city in New Mexico for the sole purpose of testing green and next-gen technologies.
  • “The Center for Innovation, Testing and Evaluation” — which will have all the infrastructure of a fully operational city (including water, power and standard roads) — is expected to take up 20 square miles of desert and cost $200 million to build.
  • According to Pegasus Global, the city will offer a one-of-a-kind “opportunity to replicate the real-world challenges of upgrading existing city infrastructure to that of a 21st Century smart city, operating within a green economy.” The company will encourage companies and organizations to “test the benefits and costs of their proposed next-generation innovations and technologies, hardware and software.”
  • “While the specific technologies that will be developed using The Center remain to be seen, Pegasus Global has a few ideas in mind, including the ability to test the true cost of solar implementation, smart grid technology, next-gen wireless networks, Intelligent Transportation System technologies and driverless cars,” reports Digital Trends.

iTunes on Movie Share Upswing: Report Credits AirPlay and iPad

  • The recent IHS Screen Digest Media Research report indicates that Apple’s iTunes held the number one spot for movie electronic sell-through (EST) and Internet video on demand (iVOD) with 65.8 percent of the market in the first half of 2011. The Zune Video Marketplace was second with 16.2 percent, while Walmart’s Vudu came in third with 5.3 percent.
  • The research suggests much of Apple’s success can be traced to AirPlay which allows you to stream wirelessly to other devices including TVs.
  • “IHS believes that the ability to stream media from Macs or iOS devices to an Apple TV or third-party AirPlay receiver has prompted users to buy more movies from iTunes — presumably so they can AirPlay them to somewhere else,” reports Ars Technica.
  • It should be noted that Amazon spent this period shifting its strategy to streaming video on demand (SVOD), which IHS ranks in a separate space from iVOD. According to the article: “Amazon still saw a small bump from 4 percent in the first half of 2010 to 4.2 percent a year later, showing that users are still sticking by Amazon’s ‘old’ service.”

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.”

Microsoft Develops Accurate Technique for 3D Facial Modeling

  • Researchers from Microsoft’s Beijing lab have developed a technique to automatically model human faces in 3D with a new level of accuracy.
  • According to the research, the new approach can acquire “high-fidelity 3D facial performances with realistic dynamic wrinkles and finescale facial details.”
  • The technique combines 3D scanning technology with a motion-capture system, in addition to what Geekwire describes as “a technique they developed to determine the minimal number of face scans needed to create an accurate model, which makes the system faster and more efficient.”
  • The research paper will be presented this week at the SIGGRAPH Conference in Vancouver.
  • ETCentric staffer Phil Lelyveld comments: “This more-accurate facial modeling, tied to game engine character behavior generation, will make for some very interesting experiences. There was a recent story on an emotional (versus Q&A response) Turing test. Would you hurt a visually realistic avatar?”

McAfee Researchers Claim to Discover Massive Hacking Attack

  • McAfee researchers say they have uncovered the biggest hacker attack ever, involving 72 governments and organizations around the world, including the U.S., Taiwan, Vietnam, South Korea, Canada and India — some dating back as far as 2006. Data compromised amounts to several petabytes of information.
  • The attack uses compromised remote access tools, or RATs, which allow system administrators to access systems from around the world and would allow an attacker to view and download confidential information. Some of those organizations and companies compromised still do not know it.
  • The attacker was not a hacker group but likely a “state actor” with very high skill levels (China is the “leading candidate”).
  • According to a blog post from Dmitri Alperovitch, McAfee’s VP Threat Research: “I am convinced that every company in every conceivable industry with significant size and valuable intellectual property and trade secrets has been compromised (or will be shortly), with the great majority of the victims rarely discovering the intrusion or its impact.”

Music Service Spotify Responds to Use of Tracking Cookie

  • Researchers at UC Berkeley have found that digital music service Spotify is using a cache cookie method with ETags that still tracks when a user has ‘Private Browsing Mode’ enabled.
  • According to Digital Music News, the cookie technology “cannot be deleted, still tracks if the user blocks cookies, and even operates in browser stealth mode. In fact, if you try to delete this thing, the cookie dynamically regenerates.”
  • The cookie is powered by analytics platform Kissmetrics, which Digital Music News explains was also used by Hulu and others.
  • Spotify is reacting quickly, trying to head off a “Cookiegate” incident. “We take the privacy of our users incredibly seriously and are concerned by this report,” explained a Spotify spokeswoman. “As a result, we have taken immediate action in suspending our use of Kissmetrics whilst the situation is investigated.”

Global VOD: Web-Based TV Revenue to Overtake Terrestrial by 2012

  • According to a new report from London-based Direct TV Research Ltd., worldwide revenues from video-on-demand movies and TV shows will top $5.7 billion in 2016.
  • These 2016 projections represent a 58 percent increase from 2010 global revenues of $3.6 billion.
  • Internet-based television revenue is expected to overtake that of digital terrestrial TV by 2012.
  • The U.S., Italy and China are projected to be the top three VOD markets.
  • Simon Murray, author of the report, points out there is minimal evidence free VOD offerings will drive transactions. “There is little evidence to suggest that these free services actually encourage subscribers to pay for on-demand titles,” Murray wrote. “In fact, it may be harder to convince households to pay for on-demand services if they have become accustomed to receiving free on-demand titles.”

Entertainment Media Companies Not Ready for Digital Opportunities?

  • Most media and entertainment company senior execs believe they are not fully leveraging customer data that would make it possible to deliver customized content, suggests a new study by consulting firm Accenture.
  • The research indicates that 91 percent of these executives are not taking full advantage of the data, and as a result, are not adequately prepared to identify revenue opportunities related to current and future digital technologies. Additionally, 95 percent do not have strong digital customer relationship management capabilities.
  • If fewer than 10 percent of the companies have a fully integrated view of their digital consumers, a new operating model may be necessary for sustainable digital growth (Accenture recommends a shift from legacy vertical, channel-oriented structures toward a horizontally-layered operating model).
  • Only 55 percent said their companies had a clearly defined social networking strategy in place, while 80 percent believe the industry is still in a state of flux. And 42 percent anticipate that advertising will serve as their main source of revenue in the next two years.
  • Accenture’s “Global Media & Entertainment High Performance Study” canvassed 130 executives across Europe, North America, South America and Asia Pacific from industries including television, gaming, film, music, publishing, portals and advertising.