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.”
A federal grand jury has returned indictments against five people associated with the NinjaVideo.net website. The indictments include one count of conspiracy and five copyright infringement counts.
The individuals were charged with engaging in illegal downloads of Hollywood movies following investigations conducted by several federal agencies, including the departments of Homeland Security and Justice.
“From February 2008 until June 2010, NinjaVideo.net allegedly offered users the ability to illegally download infringing copies of copyright-protected movies and television programs,” reports Home Media Magazine. “Many of the movies offered on the website still were playing in theaters, while others had not yet been released.”
According to the article, the site allegedly offered access to copyrighted movies and TV shows for free, with increased access to a greater content selection for users who would donate at least $25. In addition to “donations,” the website generated revenue through advertising.
“The action today marks one of the first such prosecutions of an illegal download and streaming site — indeed, one of the most notorious infringing sites on the Internet until it was shut down by law enforcement,” said Mike Robinson, EVP of content protection and chief of operations with the MPAA.
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.
“CSI: Miami” editor and creator of 2-pop FCP informational site, Lawrence Jordan A.C.E., provides an alternative analysis of Apple’s much maligned Final Cut Pro X release.
In his recent Editors Guild Magazine article, Jordan discusses the history of FCP emerging as an affordable alternative to Avid, the unveiling of FCP X at the SuperMeet in Las Vegas, the subsequent negative backlash and comparisons to iMovie, Apple’s response to the debacle, and a refreshingly optimistic view of FCP’s future.
“Marketing debacles aside, once you dig in and start to really understand the breadth and depth of the things it can do, it’s hard to argue that Final Cut Pro X is not groundbreaking,” he writes. “It’s a slick, sophisticated and innovative rethinking of the editing paradigm that, considering Apple’s weight and power in the marketplace, will very likely be embraced by an entire new generation of media creators — people who will be crafting stories into the future, for platforms and devices that don’t even exist yet.”
Jordan concludes on a promising note: “Although I can’t recommend it to my fellow editors for editing features or television in its current incarnation (after all, it is only version 1.0), I look forward to what Final Cut Pro X will have to offer as it matures and as Apple begins to deliver on promises of a professional-level product that meets the needs and expectations of both its new and experienced users. I guess we will just all have to wait and see.”
French company Movea is looking to provide motion control options for TV and set-top box manufacturers.
The company’s MoveTV platform offers remote control technology to OEMs, and “opens up the company’s tools to developers for building games and apps,” reports Engadget.
The post lists early partners: Korean cable provider C&M Media — and Remote Solution, which “will be licensing Movea’s SmartMotion and integrating MoveTV into the set-tops provided to C&M.”
“MoveTV is the first platform that takes an ecosystem approach, offering an integrated suite of SmartMotion technology components tailored to the needs of service providers, application developers and the different PayTV ecosystem partners. MoveTV platform components work together seamlessly on the backend and are designed to be modular, giving ecosystem partners the flexibility to adopt different levels of motion-driven functionality and capabilities,” says Sam Guilaumé, CEO of Movea.
Ooyala Social, a new HD-quality Social TV platform (and additional entry point for Ooyala Everywhere) allows Facebook users to “share video with their friends and family, live chat while viewing, discover new content and watch video across multiple screens and devices,” according to the company’s press release.
It supports several business models including rentals, subscriptions, purchases and advertising.
Discovering new shows is based on user’s social circles. Viewers can share videos they “like” with their friends, or “loan” a show for later viewing.
Users can watch from tablets, mobile devices and connected TVs. They can purchase, rent, or subscribe to content by using Facebook Credits, PayPal, a credit card or a mobile phone number.
“Broadcasters, distributors and Hollywood studios can capitalize on the Social TV trend by using Ooyala Social to make premium on-demand and live video widely and easily available on Facebook,” suggests the press release. “The solution offers built-in social features and other tools that enable media companies to grow audiences, boost viewer engagement and realize new revenue streams.”
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.
The first BitTorrent certified HDTV was demonstrated at the IFA trade show in Berlin last week, although ZDNet points out that torrent fans will be “hard-pressed to get their hands on one (especially in the U.S.).”
The Vestel prototype uses BitTorrent’s Chrysalis platform to simplify the process of downloading and converting torrents to view.
Although the idea may be exciting to many, it’s a bit early to celebrate. “Not surprisingly, there’s no information about any kind of release dates or distribution model for the TV (or even basic specs like screen sizes, etc.),” reports ZDNet. “Vestel is obviously not a household name, and past BitTorrent-based networking products from the likes of Netgear haven’t been runaway successes.”
“Major retailers might not want to stock a BitTorrent TV for fear of offending their digital content partners,” adds the post, “so this might be a niche product that you’d have to track down online. Or it could wind up being vaporware altogether.”
ZDNet asks its readers if they would consider buying a BitTorrent TV — a good question for our ETCentric crowd. What are your thoughts?
Viewsonic announced it will axe the launch of its planned smart HDTV, which would have run Boxee’s media center software. Coupled with Logitech’s price cut for Google TV, it seems there is little demand for smart TVs that are connected to the Internet.
However, some analysts believe that may change.
“The Logitech Revue and Boxee were both originally priced considerably higher than the $99 Apple TV, which has sold relatively well on Amazon, despite only being what Steve Jobs famously referred to as a ‘hobby’ for the company,” reports ReadWriteWeb.
We’re all expecting the future living room to be Web-connected and interactive — as initial steps are taken by mobile technology, social networking and second screen apps — but what we don’t know is exactly how this will play out. Apple has long been rumored to be working on a smart HDTV that would possibly play a more prominent role in our living rooms.
Will Apple TV jumpstart the smart TV market? ReadWriteWeb points out: “If Apple’s impact on the markets for smartphones and tablets is any indication, an Apple-branded HDTV may serve to popularize connected TVs in a way that Boxee and Google TV have failed to thus far.”
Liberty Global unveiled a new video delivery platform at IBC in Amsterdam that the company claims will reinvent television by combining the interactivity of the Web with cable and personalized content.
The multimedia gateway will create a wireless network that connects the TV to personal devices such as computers, tablets and smartphones, reports Communications Technology.
The technology, dubbed Horizon, centers on a PC as “the heart of the digital home,” includes a 3D user interface, and is presently undergoing field trials in the Netherlands. Liberty Global suggests it will be commercially available next year.
Sixty content providers — including YouTube, Facebook and Twitter — have already signed up to develop applications for the platform.
The platform has a number of tech partners including Samsung, which built the multimedia home gateway, powered by the Intel Atom CE Media Processor.
NAGRA Media Access will provide the conditional access solution that will support MoCA and Wi-Fi, and participate in the Digital Living Network Alliance (DLNA) ecosystem.
ETCentric contributors have recently submitted a number of interesting announcements related to high-end projectors for the home. The following are a few highlights:
Sony announced its VPL-VW1000ES with 4K resolution, 1,000,000:1 contrast ratio and 2,000 ANSI lumens of brightness that allows it to project on screen sizes up to 200-inches. “During the presentation Sony showed a 4K clip from its upcoming ‘Spiderman’ flick on a VPL-VW1000ES that looked every bit as beautiful as you might imagine,” reports Engadget. Price is rumored to be less than $25,000.
JVC is introducing a new line of home theater projectors that features e-Shift technology, which takes 2D HD content and upconverts and scales to a 4K signal (3840 x 2160) to display at “4K precision,” twice the horizontal and vertical resolution of Full HD. The projectors are also 3D-enabled with a 2D-to-3D converter derived from JVC’s professional 2D-to-3D converter and includes user adjustments for 3D depth and subtitle geometry correction. While Sony indicated its projector would be available for less than $25,000, Engadget reports “the top of the line JVC has an MSRP of just $12k, while the cheaper model will be $7,999 when they all ship in November.”
Epson’s new home theater projectors feature full HD, active shutter 3D, with 1080p resolution and Bright 3D Drive Technology, which drives the panels at 480Hz, essentially doubling the image refresh rate of 240Hz panels, up to 200,000:1 contrast ratio, up to 2,400 lumens of color and white light output — and enable viewing on larger screens and in a range of ambient light conditions. “The primary difference between the $4,000 6010 and $3,000 5010 (the wireless HD-equipped 5010e will run about $3,500) is the included accessories and options: like ceiling mounts, 3D glasses and additional lens modes,” reports Engadget. “The budget 3010 ($1,600) and 3010e ($1,800) models sport a more modest 40,000:1 contrast ratio and 2,200 lumen rating, but do have a pair of built-in 10W speakers.”
Panasonic’s new PT-AR100U home theater projector offers 1080p resolution, a 50,000:1 contrast ratio, and 2,800 lumens of brightness. “Panasonic even aims to make the PT-AR100U less fiddly than a typical projector, with a Light Harmonizer feature that senses ambient lighting and color and automatically adjusts the projector’s white balance, gamma, and sharpness to compensate,” indicates Digital Trends. Expect the projector to be available in October for under $2,000.
Market research firm Pacific Media Associates estimates that approximately 185,000 3D-ready projectors will be sold to U.S. schools (grades K-12) this year, which would be more than double the number sold last year.
“Schools are trying to keep up with the multiplex, keen to find ways to engage students in an age of 3D movies and gadgets that make traditional classroom materials look dated,” reports The Wall Street Journal. “And the technology and equipment makers are eager to create a new market for their 3D products.”
Teachers who are 3D proponents find that introducing 3D experiences in the classroom are beneficial in explaining a wide range of topics from understanding what cartilage in a skeletal system looks like to how math works in real life. “You don’t want to turn away because you don’t want to miss anything,” said one middle school student of the approach.
It should came as no surprise that younger generations are drawn to 3D, the iPad and mobile devices, but despite new technologies interactive teaching techniques remain the key. This makes 3D technology different in the classroom than it is in the multiplex. “Anyone can watch 3D, but you need to interact with it to really learn,” says James Mayrose, associate professor at Buffalo State College and chief executive of Tactus Technologies Inc., a company that offers a 3D dissectible-frog program.
Early studies indicate 3D projection dramatically increases test scores, and it is interesting to note that, unlike TVs, many 3D-ready projectors typically cost the same as regular projectors ($600-800).
According to WSJ, some schools are evaluating budgets while some are “waiting for more 3D materials that are in compliance with testing and graduation standards.” The article also points out that “few if any of the leading academic publishers, including Pearson PLC and McGraw-Hill Cos., have created their own stereoscopic course material, but Texas Instruments’ DLP says it is currently in discussions with various publishers.”
ETCentric staffer Phil Lelyveld suggests this is a potentially huge market for monetization and marketing opportunities.
Just in time for the fall premiere season, NBC has updated two of its iPad apps. The network has enabled its NBC app to stream full episodes and has added new social features to its NBC Live second screen app.
The new NBC Live additions are based on lessons the network has learned about how viewers have been using the app.
They noticed, for example, that different shows (scripted, reality and live TV) produce different viewer interaction, which has helped the network decide which shows to focus on inside the app for the new season.
People expect to share comments on Facebook and Twitter, and log in via either service (features that have been added to the app).
Some users prefer if content and interaction (such as slideshows, video and polls) did not interrupt the app conversation, so the interface has been improved. They also found that during “The Voice” last season, fans wanted to vote for contestants via the app just like they could on NBC.com.
Vivi Zigler, president NBCUniversal Digital Entertainment says that there’s “an elegance” to building an app with a specific purpose.
As for whether NBC is considering TV Anywhere authentication like Fox, “at this point, it’s not part of the plan,” she said, explaining that NBCU’s distribution arm has been examining that approach.
The new TiVo Premiere Elite quad tuner DVR will allow users to record four shows simultaneously, while watching a fifth.
The device will reportedly only record from digital cable and Verizon FiOS, says Gizmodo.
“The THX-certified box uses the TiVo Series4 guts, has a 2 terabyte hard drive (~300 hours of recording space) and spits out video at up to 1080p resolution,” according to Gizmodo. “Plus, it has the standard array of outputs for connecting your TV (HDMI, Component, Composite, Optical audio, RCA audio). And of course, services such as Hulu, Netflix, Pandora and YouTube are also available.”
TiVo’s press release suggests the DVR will serve as an entertainment hub with “its ability to send content to other TiVo devices in the home, or integrate seamlessly with home automation remotes. TiVo Premiere Elite offers MoCA as a networking option in addition to its integrated Ethernet connectivity. By integrated MoCA support, custom installers can use the coaxial cabling within the home to connect the TiVo Premiere Elite to the home network in setups where an Ethernet connection is not available.”
Belkin announced three new products this week designed to streamline home theater configurations and deliver HD content wirelessly.
The company’s new $250 ScreenCast AV 4 wirelessly connects up to four home theater devices (such as a Blu-ray player) to an HDTV via a transmitter connected to the device’s HDMI connection. The transmitter can locate AV equipment up to 100 feet away.
The ScreenCast AV 4 can transmit full-HD 1080p resolution, 3D video, and up to 5.1 channels of surround sound. “The included infrared emitter connects to the ScreenCast AV transmitter and relays the signal from your AV devices’ remote controls, allowing you to use the existing controllers, even when the devices are located in another room,” explains the press release.
In addition to its ScreenCast AV 4, Belkin has unveiled two other new products. “The company’s Universal HDTV Adapter and Universal Wireless AV Adapter, meanwhile, offer up wireless for TVs, making it possible to stream content with dual-band 2.4GHz and 5GHz,” reports Engadget. “The Universal Wireless HDTV Adapter offers up streaming for a single Internet-ready set, while the Universal Wireless AV Adapter works with up to four AV devices. Both are available this month, and will run you $79.99 and $99.99, respectively.”
