Will Licensing Deals Help Turntable.fm Compete with Pandora and Spotify?

  • Turntable.fm, a rival music service to Pandora and Spotify, is negotiating with the four major music labels to license content. Turntable.fm is a social media site that allows people to share songs with friends and other online users.
  • The New York-based startup is looking to create a deal that would be unique and allow users to legally stream music internationally, but CEO Billy Chasen has not disclosed the details of the proposal.
  • “Both sides are super eager to get this done, and we’re getting closer,” Chasen said. “We take very seriously the music labels and publishers, and we want to make sure they’re with us.”
  • Turntable.fm, which launched earlier this year and requires users to log in via Facebook, currently has about 600,000 users. The startup recently raised $7 million from investors including Union Square Ventures, First Round Capital, Polaris Venture Partners, Benchmark Capital, Lady Gaga’s manager Troy Carter, and Maverick Records co-founder Guy Oseary.

Will Sony Streaming Player Have the Juice to Take on Roku and Apple TV?

  • Sony will offer its SMP-N200 set-top box next month in the U.S. for $99. The player, introduced at IFA in Berlin, is the successor to the company’s Netbox.
  • The device has been upgraded to support 3D and live content streaming. It can be controlled with an iOS or Android smartphone.
  • “The original featured then-impressive support for local media playback and streaming, but does the Blu-ray-less wonder does it have what it takes in 2011?” asks Engadget. “If it has a UI refresh and access to comparable sources thanks to Sony’s now streamlined Video Unlimited/Music Unlimited media approach then this could play well as a one-two punch with a connected PC, phone or tablet.”
  • The SMP-N200 features DLNA capability and an array of connection options including composite, component, HDMI and Wi-Fi.
  • “The Streaming Player is ideal for consumers who want to upgrade to a connected television, but are happy with the TV they currently have,” said Charles Speidel, vice president of Sony’s Home Audio and Video Group. “Whether using it in the family room or on a secondary television in the house this new set-top-box offers access to the full complement of streaming content available from Sony, without committing to the cost of a new Bravia.”

Netflix CEO Admits Mistake: Will Reed Hastings Regain Your Trust?

  • On Friday, ETCentric provided an update to recent stock activity based on the negative customer reaction to Netflix splitting its services. The company cut its domestic subscriber forecast by 1 million, suggesting it no longer expects growth for its U.S. customer base this quarter. “News of the 4 percent cut in its subscriber outlook knocked 16 percent off Netflix’s share price, sending the stock to its lowest levels in 2011,” reported The Wall Street Journal. “Netflix, though, continued to defend its recent pricing change.”
  • Shortly after, ETCentric staffer Phil Lelyveld submitted a paidContent report that put the stock decline at nearly 19 percent and suggested “the honeymoon period with Netflix may be over.” The article includes a compelling visual that illustrates consumer viewing habits. According to Phil: “The most interesting part of this story is the chart. The chart breaks down how consumers acquire the movies that they watch, and how often they acquire them.”
  • Yesterday, Netflix CEO and co-founder Reed Hastings responded to his subscribers via a blog post, that started with “I messed up. I owe everyone an explanation.” ETCentric staffer Dennis Kuba was quick to publish the news: “Hastings explains his reasoning for a decision to create separate DVD and streaming businesses and websites. His customers react negatively to his blog posting (see more than 600 comments following Hastings’ post).”
  • “We feel we need to focus on rapid improvement as streaming technology and the market evolve, without having to maintain compatibility with our DVD by mail service,” writes Hastings on the Netflix blog. “So we realized that streaming and DVD by mail are becoming two quite different businesses, with very different cost structures, different benefits that need to be marketed differently, and we need to let each grow and operate independently.”
  • According to Hastings, the new DVD business will be named “Qwikster” and will add a video game upgrade when it launches in a few weeks.
  • “A negative of the renaming and separation is that the Qwikster.com and Netflix.com websites will not be integrated,” he explains. “So if you subscribe to both services, and if you need to change your credit card or email address, you would need to do it in two places. Similarly, if you rate or review a movie on Qwikster, it doesn’t show up on Netflix, and vice-versa.”
  • Hastings concluded: “Both the Qwikster and Netflix teams will work hard to regain your trust. We know it will not be overnight. Actions speak louder than words. But words help people to understand actions.”

YouTube Unveils New Video Editor: Skateboarding Dogs Rejoice

  • YouTube introduced a new video editing tool this week that allows users to make basic changes to uploaded video content without losing the video’s URL, view count and comments.
  • In addition to basic trim edits to make up for shaky camerawork, the new editor includes features such as picture rotation, contrast and color adjustment, and image stabilization. There is also an option for reverting back to the original video at a later date.
  • “YouTube has joined up with photo-editing website Picnik, both Google owned, to offer some striking color treatments of videos, including Lomo-ish, cross process and thermal,” reports Digital Trends. “Whether YouTube will later offer Picnik’s premium color treatments, for a fee, remains to be seen, although no doubt it’s something they’re looking into.”
  • The post includes an interesting video introduction to the new editing options.

Smart TV: Netgear Goes After Roku with its NeoTV Streaming Player

  • Netgear will roll out its smart TV box, the $80 NeoTV Streaming Player, which provides streaming media from Netflix, Vudu, YouTube, Pandora, Napster, Picasa, blip.tv, Crunchyroll, Revision3 and others.
  • “Looks like Netgear is taking what it learned from licensing Roku’s tech last year and streamlining its connected TV offerings,” suggests Engadget.
  • The company’s press release indicates the device “opens up a world of Internet entertainment with streaming movies, TV shows, music, videos, news clips and games.” Users can also connect to friends through Facebook and Twitter channels.
  • “On the hardware side you’re looking at a glossy black box with a 300Mbps Wi-Fi radio, Ethernet, optical audio out and, of course, HDMI,” reports Engadget. The media player also includes a regular remote control for those who opt not to use the NeoTV Remote app via their smartphone.
  • The Roku 2 XS is currently the CNET pick for best media streaming solution under $100, but NeoTV may provide some competition.

New Ad Campaign from Turner Educates Viewers about TV Everywhere

  • Turner Broadcasting has begun airing a series of television commercials on TNT and TBS that lets viewers know they can watch TV episodes streamed online if they have a cable subscription.
  • The campaign is designed to educate consumers about the concept of TV Everywhere.
  • “Consumers have bought tens of millions of iPhones and iPads,” explains Steve Koonin, president of Turner Entertainment Networks. “Our vision is that TV Everywhere kind of becomes the consumer-enabling technology that allows them to unlock the potential of those devices.”
  • An instructional video is also posted on YouTube that goes into detail about how to download the app and login (for example, viewers should be aware that they will need to have their cable bill account number available during the process).
  • It is interesting to note that Nielsen is crediting the viewing in its ratings if the show is watched within three days of airing.

YouTube Co-Founders Bet You Will Find Social Bookmarking Delicious

  • YouTube co-founders Chad Hurley and Steve Chen are taking over Delicious from Yahoo and will attempt to breathe new life into the social bookmarking service.
  • “Created in 2003, Delicious lets people save links from around the Web and organize them using a simple tagging system, assigning keywords like ‘neuroscience’ or ‘recipes,'” reports the New York Times. “It was praised for the way it allowed easy sharing of those topical links. The site’s early popularity spurred Yahoo to snap it up in 2005 — but in the years after that Yahoo did little with it.”
  • The two men want to change that. “Twitter sees something like 200 million tweets a day, but I bet I can’t even read 1,000 a day,” explains Chen. “There’s a waterfall of content that you’re missing out on.”
  • “You’re Googling around and have eight to 10 browser tabs of results, links to forums and message boards, all related to your search,” he said. The new Delicious, he added, provides “a very easy way to save those links in a collection that someone else can browse.”
  • Despite the lack of attention from Yahoo, Delicious still draws about half a million visitors a month, according to comScore. Chen and Hurley plan to “invite the earliest users to test a version of the new site and solicit feedback about the designs and features,” indicates the article.

iHeartRadio App to Feature Intelligent Playlists: Will it Take on Pandora?

  • An upgraded iHeartRadio will be released by Clear Channel in a few weeks, to be kickstarted by a two-day music festival in Las Vegas.
  • The service is Clear Channel’s answer to Pandora, which now has more than 100 million users.
  • A key feature of the new iHeartRadio app will be playlist creation based on an “intelligence platform” from Echo Nest that will reportedly incorporate 5 billion pieces of information collected from 15,000 music blogs.
  • According to Echo Nest CEO Jim Lucchese, his company has processed 30 million songs in the past 12 months, while Pandora has categorized 800,000 tracks in the past 10 years.
  • “Echo Nest provides similar technology to MTV, The BBC, MOG and Rhapsody,” reports Radio Ink.

Will Dish Network Challenge Netflix by Streaming Blockbuster Films?

  • Dish is expected to introduce a streaming movie service under its Blockbuster brand next month. The move will introduce a competitor to Netflix and coincide with that company’s recently announced price increase.
  • When Dish acquired Blockbuster’s assets in April for $320 million, it received content rights that it has sought to beef up through discussions with the studios.
  • “This ought to begin changing the way investors think about Dish,” said Ryan Vineyard, an analyst at RBC Capital Markets. “It goes from being an old-school pay-TV company to launching what could be a really high-growth business.”
  • Dish currently ranks as the second largest U.S. satellite-TV provider behind DirecTV.

Will Dissolution of the Netflix-Starz Relationship Impact Video Biz?

  • Netflix walked away from another deal with Starz after that company insisted on a tiered-pricing model similar to what they would get with a cable channel. Netflix did not want to tamper with the simplicity of its monthly fee model.
  • Netflix had reportedly offered Starz more than $300 million per year to renew their agreement.
  • With the demise of the Starz deal, Netflix customers may feel that they are paying more and getting less. Still, Netflix counters that their Starz content accounts for only 5-6 percent of domestic viewing.
  • Netflix will be challenged by competitors like Hulu, Amazon, Apple and Microsoft XBox Live. Moreover, cable companies are increasingly offering similar access to video through TV Anywhere services.
  • Starz may either sell its content to a Netflix competitor or try and create its own streaming brand like HBO.

Bidding War: Has Google Proposed an Alternative Plan for Hulu Acquisition?

  • As the bidding war for Hulu continues, Financial Times reports that Yahoo, Amazon and Dish Network are all expected to offer near 2 billion dollars for the company, its subscription service and the rights to exclusive content for at least two years.
  • However, Google is rumored to have proposed a significantly higher bid for an acquisition proposal on a larger scale. Details have not been released, but some speculate that Google may offer a couple billion dollars more in exchange for more content for a longer period of time. It is not clear if the Google proposal includes a longer deal for content or possibly something else — or if Hulu would even be interested in a new plan.
  • According to The Wall Street Journal: “Since that’s not what Hulu’s owners have put on the table, ‘normally we would have thrown people out if they’d said that,’ says an executive familiar with the sales process. But Google ‘indicated that there’s enough money’ involved so that Hulu’s owners are at least thinking about continuing the discussion.
  • The video site would fit nicely with Google’s YouTube, which has struggled in landing the type of long-form premium content that Hulu owns. And if rumors are accurate, Google is willing to pay.
  • But would the content owners agree to terms with Google, which is already the largest video website worldwide, when they were earlier holdouts on Google TV?

Rovi Provides Security and New Features for DivX Streams

  • Rovi has announced DivX Plus Streaming that allows cloud-based movie services, such as Best Buy’s CinemaNow and other sites integrated with the Rovi Entertainment Store, to stream movies securely to DivX-compatible devices.
  • New features include being able to pause on one device and seamlessly resume on another, improved video quality, and support for multiple language tracks and subtitles.
  • “Other content-protection companies, such as Google’s Widevine subsidiary, offer some similar capabilities to service providers, so Rovi is playing catch-up to a degree. And not every Hollywood studio allows its movies to be distributed in the DivX format,” reports the Los Angeles Times. “Rovi executives insist, however, that they’ve leapfrogged the competition with some features, including the near-Blu-ray-quality images and the ability to support multiple alternate-language soundtracks and subtitles in the same stream.”
  • Although integration into specific products has yet to be announced, Rovi explained the technology will be available to many existing devices through a firmware update.

Yahoo Hopes to Increase Net Traffic with More Original Programming

  • Yahoo will introduce a new lineup of original programming beginning in early October, reports Variety.
  • The eight short-form series will feature appearances from actors including Morgan Spurlock, Niecy Nash and Judy Greer.
  • Erin McPherson, VP and head of video at Yahoo, indicates this is the first phase in a planned increase for 2012 regarding originals hoping to “yield even bigger names, longer programs and maybe even scripted fare.”
  • “While Yahoo isn’t about to overtake Fox or CBS as those nets launch their fall schedules, the company will mix some traditional TV programming tactics with its own new-media savvy,” suggests the article.
  • Yahoo reportedly leveraged user metrics to determine what types of shows would sell and has plans to redesign its video platform to be more like Netflix and YouTube.
  • According to Variety: “Of the 47.3 million video streams Yahoo generated in July, its original series alone garnered 27 million — more than the 24.4 million Hulu scored in its entirety that month.”

Do American TV Viewers Prefer Streaming Over Transactional VOD?

  • Online video subscribers of Netflix and Amazon Prime paid almost $50 on average for video subscriptions during a recent six-month period.
  • According to new research from Parks Associates, subscribers spent less than half of that amount on a la carte video purchases.
  • The number of movie and TV show downloads declined 56 percent from 2009 to 2010, and movie rental downloads decreased 70 percent.
  • “Based on the reported usage of video download services by U.S. survey respondents in Q4, consumer spending on a la carte video during a six-month period ranged from $12 to $26,” reports Home Media Magazine. “Comparable spending on video services subscriptions during that same period reached at least $48 per household.”
  • “The all-you-can-eat-style subscription approach taken by Netflix has proven successful in the U.S. market,” Parks said in its report. “It has helped to drive up consumption — and spending — for online video.”
  • Netflix ended the most recent fiscal quarter with more than 25 million subscribers in North America.

Hulu Takes its Show on the Global Road with Streaming Service in Japan

  • In its first international venture, Hulu is launching its subscription service in Japan where it will offer hundreds of premium feature films and thousands of TV shows for $19.19/month.
  • The service will be accessible via select connected TVs and smartphones (Engadget reports that Panasonic Blu-ray players, Sony Blu-ray players and TVs, Xbox 360 and PS3 consoles and Android tablets are relegated to the “coming soon” list.)
  • Content will be provided from CBS, NBCUniversal, Sony Pictures Entertainment, Twentieth Century Fox, The Walt Disney Company and Warner Bros. Additional local market content will be added including Japanese-produced and other Asian content.
  • Hulu is also announcing an exclusive mobile marketing partnership with NTT Docomo. Details will be forthcoming.
  • A follow-up post from GigaOM yesterday outlines the differences between Hulu’s current U.S. offerings and its plans for the Japanese market, “that could give a hint at what Hulu might look like in the future.” So is there a “no ads, higher fees and more content suppliers” future for Hulu outside of Japan? If so, watch out Netflix!