Media companies and well-known personalities are lined up as YouTube gets ready to produce original content for 100 online video channels.
Sources indicate Google is dedicating $100 million to the initiative, aimed at transforming YouTube into a next-gen cable-like platform for specialized video channels.
“The Internet search giant on Friday said it had signed major deals with Hollywood to bring professional, high-quality programming to YouTube that could help it increase the time viewers spend watching videos on the site and attract more advertisers,” reports the Los Angeles Times.
The company is also launching a software update to Google TV, designed to integrate with the new content.
“The partnerships that YouTube announced Friday with dozens of media companies, production companies and online-video creators will generate about 25 hours of new programming each day for YouTube.”
Michael Eisner’s digital studio Vuguru, Stan Lee’s POW Entertainment and television production company Magical Elves are a few of the early partnerships. Celebrity channels will feature personalities such as Ashton Kutcher, Amy Poehler and former NBA star Shaquille O’Neal.
Google is offering an update to Google TV that includes a streamlined UI, quick-launch bar for most-used apps, an app that can locate 80,000 movies and TV episodes via the Web or TV, and a new TV-oriented YouTube interface.
The Android Market looks to launch current and new apps specially optimized for television (access to the Android Market may prove the biggest step for Google TV).
YouTube is looking to create original content and become a “next-generation cable provider” by signing deals with media companies and celebrities.
However, the service has been hindered by TV networks that “continue to block Google TV from viewing Web sites that stream some of their shows that are freely available to personal computer browsers,” reports Forbes. “That’s a big turn-off given that other devices such as Apple TV, Roku, and many others offer access to more TV content.”
In a related post, GigaOM lists the more notable new features and includes a 7-minute video demo.
“The new version of Google TV isn’t really all that groundbreaking; rather, it’s what Google TV should have offered all along,” suggests GigaOM. “And that seems to be exactly what Google was aiming for with this release — not a big flash, but finally a solid base that can be continuously improved both through Google’s apps as well as applications from third-party developers.”
Hollywood studios are starting to use Facebook as a direct-to-consumer platform for streaming films, possibly cutting out services such as Hulu, Netflix and Amazon in the process.
Universal, Lionsgate and Warner Bros. have distributed some 45 films via the Social Cinema app from Milyoni (pronounced million-eye). “What Zynga is to social gaming, Milyoni is to social entertainment,” reads the company’s website.
Miramax and Paramount have used similar apps to offer movies for Facebook credits on fan pages.
Rentals based on credits are running the equivalent of $3-$5. Facebook draws a 30 percent cut of transaction revenues.
Ad Age Digital suggests the studios’ willingness to offer rentals via social network sites “may reflect their desire to foster competition among online distribution platforms,” adding, “Miramax CEO Mike Lang said that digital monopolies were a greater threat to the film industry than piracy and that his studio had been aware of the importance of a competitive marketplace when doing deals with Netflix and Hulu.”
Peter Kafka interviews Peter Chernin in this interesting 11-minute video from the AsiaD conference.
“As News Corp.’s longtime chief operating officer, Chernin was instrumental in developing Hulu,” reports All Things D. “He explained why he wanted to build the video site — in part to compete with Google and YouTube — and why he thinks its studio owners should help it thrive today — in part to compete with Netflix.” Chernin also expresses his thoughts on purchasing Yahoo.
Chernin knew IPTV would be big, but didn’t want one dominant video distributor like YouTube. Thus, the studios got together to create Hulu, which today competes with Netflix.
Chernin believes online viewers will pay $2 per month for premium content. He talks about the future of video and creating something like a digital HBO.
By the end of the year, both the Wii and Nintendo 3DS will have access to TV shows and movies via the $7.99 per month Hulu Plus service (but only in 2D).
Hulu Plus joins Netflix in offering content on the Nintendo devices.
Also, the 3DS will get a software update at the end of November that allows 3D recording for up to ten minutes, and the ability to “stitch together stereoscopic images for stop motion animation that jumps out of the tiny screen at you,” suggests Engadget.
“With both Hulu and Netflix in tow, as well as the ability to create your own content, the 3DS is actually turning into quite a powerful little portable.”
Steve Jobs had plans for a full-fledged, integrated Apple TV, The Washington Post learned after reviewing the authorized Jobs biography by Walter Isaacson.
“He very much wanted to do for television sets what he had done for computers, music players, and phones: make them simple and elegant,” wrote Isaacson in the book, available today.
“I’d like to create an integrated television set that is completely easy to use,” Jobs told the author. “It would be seamlessly synced with all of your devices and with iCloud. It will have the simplest user interface you could imagine. I finally cracked it.”
Rumors have persisted that Apple might launch a television by the end of next year. Details have not been available, but if it “offered users a la carte programming with integrated Web surfing and access to Apple’s iOS platform, it could upend longstanding industries in telecommunications and entertainment,” suggests The Washington Post.
After months of bidding, Hulu’s owners — News Corp., NBCUniversal, Disney and Providence Equity Partners — have decided to stop its sale.
“Since Hulu holds a unique and compelling strategic value to each of its owners, we have terminated the sale process and look forward to working together to continue mapping out its path to even greater success,” explained the partners in a short statement. “Our focus now rests solely on ensuring that our efforts as owners contribute in a meaningful way to the exciting future that lies ahead for Hulu.”
In a related TechCrunch post, it was suggested that media companies saw more value in retaining licensing fees than selling them.
Bidders were not willing to pay more for Hulu knowing that the costs for content rights would increase dramatically after the two year period being sold. (Google reportedly bid $4 billion, but wanted streaming rights for longer than the guaranteed “couple of years.”)
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.”
Netflix returned from MIPCOM last week with several new foreign TV shows it hopes will draw interest from its 25 million subscribers.
Programs include Norwegian gangster drama “Lilyhammer” starring Steve Van Zandt, French/German co-production “Borgia,” and the British supernatural drama “Being Human.”
The slate of foreign programming will join the remake of BBC drama “House of Cards” as Netflix turns to original, first-run drama series.
“Netflix has already committed to a second season of both ‘Borgia’ and ‘Lilyhammer,’ suggesting its taste for original and foreign-made fare is no passing fancy,” according to The Hollywood Reporter. “The company is also in a bidding war with Showtime and Hulu for the rights for the relaunch of cult comedy series ‘Arrested Development.'”
Netflix chief content officer Ted Sarandos points out the strategy is in response to customer demand, since TV shows account for 50-60 percent of total viewing on Netflix.
“We’ve moved very aggressively into this space,” Sarandos said. “The growing audience for these 1 hour serialized dramas is typically on pay TV: Showtime, HBO or Starz, those ones who are least likely to want to sell their shows to me on our (second-run) season-after model. So we have to develop the muscle to create and distributing these shows ourselves.”
CinemaNow — the online video service launched by electronics chain Best Buy in 2010 — has announced it will offer 1080p HD movies from Fox and Warner Bros. on personal computers. “Until now, only standard-definition movies were available from CinemaNow on the PC,” writes Carolyn Giardina in The Hollywood Reporter.
Thomas Gewecke, president of Warner Bros. Digital Distribution, indicates that CinemaNow is using Intel technology to make secure HD content available. “Intel Insider is a hardware-based security technology in second-generation Intel Core processors,” reports THR, “which is the fastest-shipping Intel product with more than 75 million units shipped to date.”
“The partnership with Intel and Best Buy’s CinemaNow to bring HD digital downloads of our movies to the PC will expand our reach to millions of devices in the U.S. and potentially more around the world,” adds Mike Dunn, worldwide president at 20th Century Fox Home Entertainment.
CinemaNow currently offers approximately 15,000 movies and TV shows.
A new report from media forecasting firm Magnaglobal shows that by 2016 cable subscriptions will dramatically decline as online becomes the medium of choice.
Magnaglobal predicts that 9 million households will not subscribe to traditional pay TV services (triple today’s amount), of which 4 million will be cord cutters who cancel their service to opt for content via the Internet.
Additionally, The New York Times points out that the number of young consumers who have never signed up for cable or satellite service, but rely on services such as Hulu and Netflix for their media, will continue to grow. “The number of people who never signed up for cable is expected to double — to 5 million, from 2.5 million today — by 2016, according to the report.”
The growth of DVR ownership is also expected to decline, as consumers continue to adopt devices that enable streaming of content via the Web.
Nielsen data is no longer enough for effective TV planning and buying, suggests Networked Insights, a company that “analyzes social data to uncover trends and consumer engagement opportunities.”
Networked Insights recently published reports that focus on the value of television viewers’ social data. One such report examined top social TV shows from FOX, NBC, ABC, CBS and CW. Viewers were grouped by TV Fans, Millennials, Gamers, Electronic Consumers, Moms and Sports Fans, while general sentiments from each group were analyzed.
“What’s impressive is how the company looks at specifically where ad money is being spent to analyze the conversations around the show,” reports Lost Remote. “For example, before the show even premiered, they described NBC’s ‘massive ad campaign’ for ‘Whitney’ as a ‘Social Turkey,’ and that ‘over-hyping a show is underwhelming potential fans.'”
Another report revealed opportunities for a Toyota Corolla TV ad to improve its digital strategies, specifying where targeted spending would be most effective. Respondents included fans of AMC’s “The Walking Dead.” The article suggests that the case study “is pretty compelling proof that social data can help you get the competitive advantage in TV planning and buying if you listen in the right places across the social web.”
Networked Insights recently announced $20 million in series B funding from Goldman Sachs.
Microsoft is getting a boatload of new content for its Xbox video service intended to help it serve as a digital media hub. The company has struck deals with Comcast, Verizon, HBO and others.
Verizon and Comcast will be joining AT&T’s U-Verse to provide content, although while Verizon will include live video TV and video on demand, Comcast is testing the waters with its VOD library only. HBO Go streaming access will provide HBO original programming and movies from Warner Bros., Fox Searchlight and Universal Studios. Bravo, EPIX and Syfy are among the cable networks that will be available. Xbox’s international content will include the BBC, Channel 4, Channel 5 and LOVEFiLM in the UK; Antena 3, RTVE and Telefonica in Spain; and Televisa in Mexico.
But how do you get to the movies, TV shows, games and music that you want? Microsoft hopes you will command your Xbox with voice control, motion control and a Windows smartphone.
“This is incremental stuff but it’s still interesting. A source who’s played with the new service says it’s genuinely cool. Just as important, given that Microsoft has sold some 50 million compatible machines, it has (potential) leverage to do some really interesting stuff,” reports All Things D. “This is where Google TV would like to be, and it’s why Google is out pitching content guys for a relaunch this fall.”
France recently banned TV and radio show hosts from naming Facebook, Twitter, or other specific sites unless directly referencing a news story involving the companies. The regulation was created to reduce bias for the popular social networks over other striving, lesser known sites.
Apple’s iTunes has benefitted from the phrase “Now available on iTunes” commonly tacked onto advertisements where it was previously customary to simply say “Now available in all good music stores” — which could today be updated to say “online music stores” in order to include other music providers.
Additionally, the phrase “Now available on Amazon.com” has become standard for book promotions, which basically provides free advertisement for the site while ignoring other providers.
Similarly, “Follow us on Twitter” and “Like us on Facebook” have dominated commerce. “Social networks only work when people use the same ones. In other words, they naturally lend themselves to being monopolized,” suggests The Next Web.
Some brand names have now become part of everyday language. Google, for example, has grown so popular that it is commonly used as a verb when describing the act of searching online. TiVo is also regularly used as verb, and sometimes replaces “DVR” in conversation.
The article casts doubt on the actual effects regulation would have on social media monopolies: “…users will typically go where all the action is taking place.”
“The Internet isn’t a monopoly though. It’s an oligopoly consisting of multiple monopolies from different digital industries, and the reason this is happening really isn’t all that complicated,” adds The Next Web. “Success breeds success, something which underpins most monopolies, whether we’re talking about dominant languages, biological species or, indeed, Internet technology companies. Hegemony stems from success, and it’s certainly not unique to the Internet age.”
Producer Mark Burnett and the team at Youtoo is hoping to kickstart the first age of social TV by “putting 500 people on TV each day — providing more Americans than ever before with a real shot at their 15 minutes of fame,” according to the press release.
Burnett’s production studio VIMBY (Video in My BackYard) and online distributor KoldCast TV have joined Youtoo CEO and founder Chris Wyatt in the venture.
“VIMBY will be producing content for the network asking users to submit video ‘FameSpots’ or ‘Social Shouts’ via the Web, iPhone, iPad or Android to insert themselves into the content,” reports Lost Remote.
Youtoo’s patent-pending software and cross-platform technology stack enable users to record an HD broadcast quality video, or a “FameSpot,” which is filtered by the software and if chosen, will be put into the live broadcast feed.
“Youtoo is the world’s first social TV network,” says Wyatt. “Since millions of people want to be on TV, we created a website and app for that. Youtoo is a social network, television network, and the technology to make them all work together. Just like a social network, you can interact with your friends or followers. However, you can also interact with a national audience on TV. Think of it as Facebook for TV in concept.”
Youtoo launched September 27th in beta and is currently live. According to Wyatt, the network has distribution to 15 million households through Comcast, Time Warner, Cox, Charter, Verizon, Service Electric, Bright House, National Cable Television Cooperative and Insight Cable.
