Hollywood Suite: Will New Canadian VOD Service Compete with Netflix?

  • Hollywood Suite is a new video-on-demand service with plans to launch in Canada this November.
  • Available via cable, the Internet and satellite TV, the service will offer 450 titles per month in HD from MGM, Warner Bros. and others.
  • The Toronto-based platform will also feature independent action, romance and relationship films.
  • According to Home Media Magazine: “Movie titles, subscription fees and rental programs, which are expected to rival rates charged by Netflix, will be announced closer to launch date, according to industry veteran Jay Switzer, co-founder of Hollywood Suite.”
  • “These channels are designed to meet the strong audience demand for movies across all platforms and support Canada’s television service providers,” Switzer said.

Piracy Surge: Fox 8-Day Delay Draws Negative Consumer Response

  • Since Fox implemented its 8-day delay of content availability on Hulu, downloads from BitTorrent for shows such as “Hell’s Kitchen” and “MasterChef” have increased 114 percent and 189 percent, respectively. Others are watching Fox shows on video sites including YouTube.
  • Moreover, the situation is creating negative consumer reactions as consumers are forced to find content elsewhere.
  • “One of the main motivations for people to download and stream TV shows from unauthorized sources is availability,” reports TorrentFreak. “If fans can’t get a show through legal channels they turn to pirated alternatives.”
  • The post suggests that some consumers have indicated they will be returning to their DVRs and may even dust off their VCRs in response.

Elgato HDHomeRun App Provides Yet Another Streaming TV Solution

  • The HDHomeRun iPad app from Elgato paired with one of SiliconDust’s new HDHomeRun Prime CableCARD tuners allows users to play and record cable channels that are sent without encyption or are marked copy freely.
  • Currently, the $17.99 app is iPad-only and can only handle standard definition MPEG-2 channels. According to the press release, “The HDHomeRun PRIME App lets the user record programs directly to their iPad with the option of transferring those recordings from the iPad 2 to a Mac or PC.”
  • Engadget reports: “…in a market suddenly flooded by CableCARD tuners maybe this extra functionality is just what’s needed to tip the balance between one device or another.”
  • The post includes a brief video demo.

ESPN’s Billion-Plus Online Video Streams Now Powered by Ooyala

  • ESPN has selected Mountain View-based Ooyala to power the sports broadcaster’s streaming video content. The platform will replace a proprietary model administered by ESPN.
  • Ooyala’s platform will reportedly increase the quality of playback, reduce load times and streamline back-end management.
  • “It’s a serious feather in the cap and vote of confidence for the four-year-old video startup, as ESPN is one of the biggest producers of online video content, with 400 unique visitors hitting play on ESPN videos every second (and serving over 1 billion streams per month),” reports TechCrunch.
  • The media technology site sees the move as positive: “All in all, it’s great to see ESPN finally offering a quality player with fast load times and a more linear on demand experience in which video queues and layouts feel more akin to a television viewing experience — and can compete in ease of video use with YouTube.”

Rdio for iPad App: Streaming Music Better Than Spotify?

  • Rdio has released a free iPad version of its streaming music app. According to the Gizmodo review: “Spotify may be stealing all the hype and pub for streaming music services but let’s not kid around here, Rdio still makes the best music apps across any platform.”
  • The review raves about the app based largely on its selection, album art, social aspects and quality music player.
  • Users can listen via their iPad headphones or through other devices thanks to AirPlay support — a feature that particularly appeals to the staff at Gizmodo: “I always thought it was funny to use the iPad as your music player but when you think about it, Rdio + AirPlay + Big Honking Screen gives you the biggest remote control in the house for the best audio system in your house with all the streaming music not in your house.”
  • For a better look at the interface, the post includes a brief video demo.

American Airlines and Gogo Roll Out In-Flight Video Streaming

  • American Airlines announced it will roll out Gogo’s in-flight streaming video service to its entire fleet of 767 aircrafts.
  • The service wirelessly streams movies and TV shows from an in-flight library to Wi-Fi-enabled laptops (at $0.99 per TV show and $3.99 per movie).
  • The current slate of 100 movies and TV shows will remain accessible for viewing after the flight has concluded. Customers will have access to the movies for 24 hours and TV shows for 72 hours.
  • The TechCrunch post includes a video demo explaining the service.

Hulu to Debut its First Long-Form Original Production

  • Hulu will unveil an original documentary series on August 17. “A Day in the Life” is produced by documentary filmmaker Morgan Spurlock, and will be available exclusively on Hulu.
  • The half-hour show will follow the daily lives of celebrities, including business mogul Richard Branson and musician will.i.am.
  • Hulu is not the only online video site to venture into original programming. In March, Netflix announced an original series of its own: “House of Cards,” starring Kevin Spacey.
  • The series is Hulu’s largest and most ambitious original production, and will premiere as the service continues to court prospective buyers. Yahoo, Google, and Amazon are rumored to be potential bidders.

Rovi Claims Hulu Infringes on Electronic Program Guide Patent

  • Rovi Corporation filed suit against Hulu last week, claiming that the video site infringes on its patents for electronic program guides.
  • Santa Clara, California-based Rovi provides technology that powers streaming services from Blockbuster On Demand and Best Buy’s CinemaNow. The company also licenses its technology to others such as Apple, Microsoft and Comcast.
  • The digital entertainment solutions provider claims that Hulu’s infringement “presents significant and ongoing damages to Rovi’s business.” The company is seeking compensation for lost license revenue and treble damages.
  • As previously reported by ETCentric, Hulu has been offered for sale by its owners (Disney, News Corp., NBC Universal and Providence Equity).

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.”

Amazon Expands its Online Library with NBCUniversal Deal

  • Amazon has announced a deal with NBCUniversal to offer Universal films online, in a move designed to step up competition with services such as Netflix and Hulu.
  • Amazon offers subscribers to its “Prime” program discounts on shipping of products, and free access to an online library of films. The service costs $79 a year.
  • Amazon announced an agreement last week with CBS that expanded its library to more than 8,000 titles. The NBCUniversal deal will grow Amazon’s library to more than 9,000 movies and TV shows (compared to Neflix’s 20,000).
  • Films such as “Eternal Sunshine of the Spotless Mind,” “Being John Malkovich,” and “Fear and Loathing in Las Vegas” are part of the deal.

Spotify Sees Early Success with 70,000 Paid U.S. Users

  • Billboard reports that Spotify has already reached 70,000 paid U.S. subscribers, one week after the streaming music service’s invite-only launch.
  • It’s too early to tell what the initial success will mean in the long term since the service’s closest competitors have been on the market for years (Rhapsody and Napster, for example, have more than 10 times Spotify’s number of paid subscribers but took years to get there).
  • Spotify currently has an ad-supported free option, but also offers two paid tiers that start at $4.99.
  • Paid subscriptions provide ad-free service, unlimited play time, and mobile device access.
  • In a recent review, Digital Trends found the service “to be the most well-rounded service out of Pandora, Spotify, and Grooveshark.”
  • In related news, licensing firm BMI announced it has completed deals with Spotify and Turntable.fm to provide some 6.5 million songs to the online music services.

Netflix Pursues DreamWorks Animation, No Facebook Integration

  • Netflix is reportedly negotiating for exclusive streaming rights to DreamWorks Animation films.
  • The deal would replace DreamWorks’ contract with HBO (which runs through 2014).
  • DreamWorks reportedly has permission to end its HBO contract early. If it does, it could provide content to Netflix by early 2013.
  • If the deal goes through, it would mark the first time a major studio has licensed content to subscription VOD at the same time (as opposed to after) its pay TV window.
  • In related news (see LA Times link), Netflix will not be including Facebook integration anytime soon in the U.S. (although it will be integrated in Canada and Latin America). This is based on the 1988 Video Privacy Protection Act that requires peoples’ video rental information be kept private. Netflix feels that the law is ambiguous as it relates to Netflix/Facebook, but they’re not taking any chances.

Update: Apple Considering a Bid for Hulu Video Service

  • In the latest installment of the ongoing Hulu saga, Bloomberg reports Apple is “considering making a bid” for the online video service.
  • Apple would join Google, Yahoo, AT&T and others who have expressed interest (Microsoft has reportedly dropped out of the bidding).
  • With $76 billion in cash and securities, an expected $2 billion bid would not be too difficult for Apple. If so, analysts suggest this would give Apple a leading subscription service that would rival, if not surpass, the Netflix service.
  • “Part of the ecosystem of Apple’s future is to include more video,” said Scott Sutherland, Wedbush Securities analyst (who recommends buying the stock). “It’s something they are focused on.”

Update: Microsoft Drops Out of Auction for Hulu Service

  • Microsoft has reportedly dropped out of the bidding for Hulu and would not continue into a second round, according to “a person with knowledge of the matter.” (Although the individual did not rule out the possibility of Microsoft re-entering in a later round.)
  • Google, Yahoo, AT&T and as many as eight other companies remain interested in the online video service.
  • According to Business Insider, Yahoo is willing to spend up to $2 billion if it can get content rights for the next four or five years.
  • It has been reported that Hulu plans to offer five years of access to content from its media company owners (Disney, News Corp. and Comcast’s NBC Universal), including two years of exclusivity.

AFTRA Ratifies Residuals for Streaming Video Games

  • A new contract was recently ratified by members of the American Federation of Television and Radio Artists (AFTRA) that will provide performers who work on video games a onetime payment when games are streamed over the Internet.
  • The so-called “cloud gaming fee” is the first of its kind, and resolves a longstanding dispute over compensation for the remote delivery of video games.
  • The union represents some 70,000 actors, recording artists and broadcasters.
  • AFTRA’s sister union SAG has yet to negotiate a new video game contract.