While the men’s Div. 1 college basketball final between North Carolina and Michigan State might have been lacking in excitement, CBS Corp. April 13 said its online properties, including the March Madness on Demand video player, set records for unique visitors.

The annual NCAA tournament (“March Madness”) pits the nation’s top 64 men’s college teams.

Nearly 7.5 million unique visitors downloaded the video player, watching 8.6 million hours of content (including for the first time in high-definition) — up 58% from 4.8 million visitors last year. Indeed, more than 5.6 million unique visitors frequented the MMOD player during the first four days of the tournament, which ended April 6.

Underscoring the video player’s appeal during work hours, the so-called “boss button” — which superimposes a fake spreadsheet image over the player — was utilized 2.8 million times.

CBS cited March Madness for triple digit month-over-month gains at CBSSports.com in unique users (134%), visits (121%), minutes (158%) and page views (147%).

In addition CBS said TV.com, which streams repurposed content from more than 19,000 TV series, including non-CBS programming, recorded record traffic in March, according to Nielsen Video Census.

The site posted a 1,315% increase in unique viewers, 2,348% increase in streams and 1,190% rise in minutes spent on the site, compared to the same period last year.

http://www.homemediamagazine.com/streaming/cbs-video-sites-score-big-march-15333

Verizon is weighing on the philosophy it believes the U.S. government should take when doling out $7 billion for the broadband stimulus program.

The telco giant says the program should focus on two key objectives: extending broadband Internet connections to unserved areas, and addressing demand-side factors that hamper growth of broadband subscriptions, such as the lack of a computer in many households.

In recommendations filed today with the National Telecommunications and Information Administration (NTIA) and the Rural Utilities Service (RUS), Verizon said 90 percent of U.S. households have access to broadband, and of the households that have computers, 80 percent of them subscribe to broadband services.

Verizon suggested three principles to guide the broadband stimulus program, which is part of the American Recovery and Reinvestment Act of 2009: Be open to a wide range of projects to help finish what has already been started; rely on state and local expertise in identifying unserved areas; and maintain transparency and accountability.

The company also stressed the need for quick action on the part of the agencies cooperating to produce an economic stimulus, and the importance of administering the programs in a way that encourages broad participation.


http://www.xchangemag.com/hotnews/verizon-shares-broadband-stimulus-ideas.html

Time Warner Scraps Bandwidth Cap Testing (http://www.pcmag.com/article2/0,2817,2345430,00.asp)

Time Warner Cable has shelved plans to test consumption-based billing until it can improve its "customer education process," the company announced Thursday.

"It is clear from the public response over the last two weeks that there is a great deal of misunderstanding about our plans to roll out additional tests on consumption based billing," Time Warner CEO Glen Britt said in a statement. "As a result, we will not proceed with implementation of additional tests until further consultation with our customers and other interested parties, ensuring that community needs are being met."

Time Warner started testing bandwidth caps last year in its Beaumont, Texas market – a test that it recently expanded to North Carolina and New York.

But while rival Comcast implemented a 250GB bandwidth cap for residential customers last year without much fanfare, and AT&T announced plans to test a 150GB cap, Time Warner took some heat because its caps were relatively low – between 5GB and 40GB.

The company eventually announced it would also offer a 100GB "super tier" and unlimited service for $150 per month, but by then, Congress was already up in arms and interest groups were circulating online petitions against the caps.

"While we continue to believe that consumption based billing may be the best pricing plan for consumers, we want to do everything we can to inform our customers of our plans and have the benefit of their views as part of our testing process," Britt said Thursday.

As part of its education process, Time Warner will provide customers with tools to help them understand how much bandwidth they consume. No mention of how long that will continue before testing resumes.

Sen. Charles Schumer, a New York Democrat, was in Rochester Thursday afternoon to speak out against the proposed caps, according to stopthecap.com, a Web site set up to protest the caps.

"StoptheCap has been working with the senator's office throughout the day today to help coordinate the visit, which will take place in Irondequoit at the home of just one resident who will be directly impacted by Time Warner's plans," according to the site.

"We look forward to continuing to work with Senator Schumer, our customers, and all of the other interested parties as the process moves forward, to ensure that informed decisions are made about the best way to continue to provide our customers with the level of service that they expect and deserve from Time Warner Cable," Britt concluded.

Free Press, which set up an online petition to encourage a congressional investigation into the Time Warner caps, applauded the move.

"We're glad to see Time Warner Cable's price-gouging scheme collapse in the face of consumer opposition," Timothy Karr, campaign director of Free Press, said in a statement. "Let this be a lesson to other Internet service providers looking to head down a similar path. Consumers are not going to stand idly by as companies try to squeeze their use of the Internet. This is a major victory, but the fight for a fast, open and affordable Internet is far from over."

The National Cable & Telecommunications Association (NCTA) – which championed Time Warner's testing process on Wednesday – said the company's decision "is completely consistent with how they have approached this from the beginning."

"Bottom line: they have been and are engaged in exactly the kind of outreach and transparency interest groups profess to want," NCTA president and CEO Kyle McSlarrow said in a statement.

Verizon Has Ambitious LTE Schedule (http://www.von.com/news/verizon-has-ambitious-lte-schedule.html)

04/15/2009
Verizon Wireless may be looking to complete its national LTE mobile broadband coverage roadmap faster than previously imagined, with recent executive comments indicating a completion date by 2014.

As Verizon announced at CTIA, it expects to have two trial LTE markets by the end of this year, with a first commercial launch early in 2010, and 25 to 30 markets live by the end of 2010.

And then this week there was this: "From there we'll build it out in the next two, three years, where we'll have LTE deployed throughout our footprint," Gurnani said in a video interview with Unstrung.

That would indicate full deployment sometime in 2013.

Verizon has been on a roll with its LTE news, starting by naming Alcatel-Lucent, Starent Networks and Ericsson as its 4G suppliers in February at Mobile World Congress. It is perhaps feeling the pressure from Clearwire Corp. and Sprint-Nextel Corp., which have an aggressive time-to-market advantage for WiMAX.

Verizon will be one of the first in the U.S. market with LTE, but won’t be the last. In the United States, AT&T Inc. is planning to deploy in 2011, with Metro PCS saying it will launch LTE in the second half of 2010. And T-Mobile USA’s parent company, T-Mobile, has also said it would go with LTE, skipping interim HSPA upgrades to get a jump on the market.

Best Buy plans online movie service (http://www.videobusiness.com/article/CA6652262.html)

Chain, CinemaNow in talks for downloads
By Susanne Ault and Jennifer Netherby -- Video Business, 4/16/2009

Stung by falling DVD sales, Best Buy is on the verge of launching a digital movie service with a third-party partner that could debut as early as this summer, according to studios.

The chain is in talks with CinemaNow and other online movie services to create a download business that Best Buy hopes will offset falling DVD sales, studio execs said.

Details on how exactly Best Buy would benefit from a potential partnership with CinemaNow, and others, are still being finalized. But one possibility, according to studio execs, is that Best Buy would market and sell Web-enabled hardware devices—from TVs to Blu-ray Disc players—that would include immediate, built-in access to CinemaNow’s library. Such devices could roll out as soon as this summer. Best Buy would presumably share with CinemaNow or another third-party provider the resulting download and/or streaming revenue.

Currently, Best Buy is advertising job openings for digital movie executive positions at such tech-geared sites as PaidContent.org.

The strategy is similar to what Blockbuster and online disc retailers Amazon and Netflix have done over the last year. Blockbuster partnered with CinemaNow in January to offer movie downloads through a variety of set-top devices including TiVo digital video recorders and Blu-ray players. The partnered service is set to debut in the second half of the year. Amazon offers its Video on Demand service through TiVo and Roku players, and Netflix offers its instant viewing service on those devices and others.

It’s unclear how Best Buy would align with manufacturers for these new digital movie-enabled devices.

Spokespeople for the chain and CinemaNow didn’t respond for comment.

CinemaNow has pushed to offer its download service through a variety of devices and partnerships. Previously, Best Buy had been working to launch its own separate branded download store. It appears these plans fell through sometime in 2007.

DVD leader Wal-Mart briefly sold downloads with partner Hewlett-Packard through Walmart.com in 2007, but the service never evolved out of a test phase, and the retailer’s site was closed when partner H-P exited the download business. Downloads were tied to a PC and unwatchable on a TV or other devices.

Physical DVD merchandising also is undergoing changes at Best Buy, following the chain reducing staff to cut expenses. Jill Hamburger, VP of movies and entertainment, has left the company, according to sources. She reported to Mike Vitelli, VP of consumer electronics/product management, and it’s not expected that her position will be replaced. Marlys Thorson, merchandise leader for DVD software, also has exited Best Buy.

Prison, fines for founders of file-sharing site

STOCKHOLM, Sweden (CNN) — A Swedish judge Friday found four men involved in a file-sharing Web site guilty of collaborating to violate copyright law and sentenced each one to a year in prison and 30 million kronor ($3.6 million) in damages.

The four men include three founders of The Pirate Bay site, along with one patron.

The defendants promised before the verdict that they would appeal if found guilty.

It is a landmark case in the fast-growing Internet piracy industry that involved both a criminal case and a civil claim filed by major media companies including Warner Brothers, Columbia, Twentieth Century Fox, Sony BMG and EMI.

The year-long prison terms are for violating Swedish law, and the damages are compensation to the media giants in the civil case. Specifically, the trial dealt with the illegal file-sharing of 20 songs, nine films, and four computer games, the Swedish newspaper The Local reported.

The companies had asked for 110 million kronor ($13 million), but the judge at Stockholm City Court ruled the men must pay one-third of that amount. Each will pay a portion of the total damages

http://cnnwire.blogs.cnn.com/

Neowin Exclusive: Lets talk some Zune HD specs (http://www.neowin.net/news/main/09/04/15/exclusive-lets-talk-some-zune-hd-specs)

Over the last week there has been a ton of buzz around Microsoft's upcoming device update which we have confirmed will be labeled as the Zune HD. We've teamed up with Ryan Rea (aka volvoshine) from LiveSide.net and are going to let the world know what we do and do not know about the Zune HD. We've got the green light to go ahead and share the specs that our sources within Microsoft have confirmed to us.

An overview of the Zune HD specs:

3.6 inchish OLED full touch screen.
NVIDIA Tegra powered.
4GB, 8GB, 16GB, 32GB, and 120GB versions.
HDMI Connection to stream straight to your TV.
HD Radio.
Web Browser.
WiFi compatible, with wireless marketplace.
Released, early fall.
International release of the Zune device itself.
Home AV packs, Car packs, Charge packs.
Unconfirmed rumors (A Microsoft spokesperson declined to comment or confirm):

...[rumors follow]HDMI connection ??? :)

Neowin Exclusive: Lets talk some Zune HD specs (http://www.neowin.net/news/main/09/04/15/exclusive-lets-talk-some-zune-hd-specs)

HDMI connection ??? :)

And an OLED screen. Sweet!

Except it seems like there won't be enough storage space for me. I need a minmum of 70GB just for my music.

My Mythical Online Rental Service for Movies
Why Hollywood is so slow to catch up on offering all of its movies and shows online.

http://www.slate.com/id/2216328/

My Mythical Online Rental Service for Movies
Why Hollywood is so slow to catch up on offering all of its movies and shows online.

http://www.slate.com/id/2216328/Good article, although I'm surprised that the author freely admits illegally downloading his entertainment. Didn't a Fox entertainment reporter/reviewer just get fired for that?

The larger point of the article stands, though. If the studios aren't going to make their content available online, people will find alternatives, costing them revenue. And, the problem with that, is if you allow your product to sell for nothing, you're devaluing it in the marketplace. It will be hard for them to eventually sell content for what they really think it's worth.

The author is right, it's time for them to start the distribution now, or they will follow the same fate as the music industry. It's very close to being too late.

Scott

Good article, although I'm surprised that the author freely admits illegally downloading his entertainment. Didn't a Fox entertainment reporter/reviewer just get fired for that?

The larger point of the article stands, though. If the studios aren't going to make their content available online, people will find alternatives, costing them revenue. And, the problem with that, is if you allow your product to sell for nothing, you're devaluing it in the marketplace. It will be hard for them to eventually sell content for what they really think it's worth.

The author is right, it's time for them to start the distribution now, or they will follow the same fate as the music industry. It's very close to being too late.

Scott

The studio execs and TV broadcasters have been talkin about this. They know they need to get their stuff online in a legal and convenient way because people want to consume it that way. Their choice is to provide that method or let people find illegal alternatives. Pretty simple.

Aneesh Chopra will promote broadband rollout, streamlined government technology functions and technological innovation.

President Barack Obama has named Aneesh Chopra to the post of chief technology officer. Chopra had been Virginia's secretary of technology. The president made the announcement Saturday in his weekly video address.

In addition to streamlining government technology functions, Chopra will "promote technological innovation," which includes the nationwide rollout of broadband, one of the White House's key technology issues.

Ed Black, president of the Computer & Communications Industry Assoctation, said, "Obama said part of Chopra's job will be to expand the use of technology to boost broadband access," said Black in a statement. "With those marching orders and Chopra's abilities we look forward to seeing expanded, affordable access to an open Internet and the increased economic activity that comes from it."

http://www.broadcastingcable.com/article/209482-Obama_Names_Chief_Technology_Officer.php

Joe Ambeault, Director of Product Development and Management for Video Services at Verizon has been added as our final keynote at next month's Streaming Media East conference. Over the last 3 years Verizon has been employing a spiral development approach in close collaboration with a wide cross section of consumer segments to progressively deliver more of the Internet to the television in a mass market friendly manner. In Joe's keynote, attendees will learn about Verizon's first Internet applications for FiOS TV's approach for bringing Internet video to the set top box and Verizon's vision for the future of Internet TV.

http://blog.streamingmedia.com/the_business_of_online_vi/2009/04/east-keynote.html

Good article, although I'm surprised that the author freely admits illegally downloading his entertainment. Didn't a Fox entertainment reporter/reviewer just get fired for that?

The larger point of the article stands, though. If the studios aren't going to make their content available online, people will find alternatives, costing them revenue. And, the problem with that, is if you allow your product to sell for nothing, you're devaluing it in the marketplace. It will be hard for them to eventually sell content for what they really think it's worth.

The author is right, it's time for them to start the distribution now, or they will follow the same fate as the music industry. It's very close to being too late.

Scott
It's amazing the reasons people use to rationalize theft of intellectual property.
There are a million reasons the thief uses to justify his crime.

It's not the right format.
It costs too much.
They charge too much for tickets.
They're loaded, they won't miss it.
I would not have paid to see it anyways.

He should be fired.

Would you feel the pain if I told you... if you don't leave the door to your house open my friends and I will find a way to get in and take your property anyways.
Gives you a warm fuzzy feeling doesn't it?

The downside of this is less money to invest in new property which hurts us all. This is the devaluing of creativity.
But hey, at least the thief was able to get his share of the loot. After all, it's really just about "me" anyways.

Adobe in Push to Spread Web Video to TV Sets (http://www.nytimes.com/2009/04/20/technology/20adobe.html?ref=business)

The denizens of Hollywood and Silicon Valley have, by and large, vastly different value systems, role models, even tastes in cars, food and clothing.

But they increasingly agree on one thing: a standard for online video called Adobe Flash.

Flash was once known primarily as the technology behind those niggling Web ads in the 1990s that gyrated and flickered on the screen. Today, it is a ubiquitous but behind-the-scenes Web format used to display Facebook applications, interactive ads and, most notably, the video on sites like YouTube and Hulu.com.

Now Adobe Systems, which owns the technology and sells the tools to create and distribute it, wants to extend Flash’s reach even further. On Monday, Adobe’s chief executive, Shantanu Narayen, will announce at the annual National Association of Broadcasters convention in Las Vegas that Adobe is extending Flash to the television screen. He expects TVs and set-top boxes that support the Flash format to start selling later this year.

For consumers, what sounds like a bit of inconsequential Internet plumbing actually means that a long overhyped notion is a step closer to reality: viewing a video clip or Internet application on a TV or mobile phone.

For Hollywood studios and other content creators, a single format for Web video is even more enticing. It means they can create their entertainment once in Flash — as the animated documentary “Waltz With Bashir,” from Sony Pictures Classics, was made — and distribute it cheaply throughout the expanding ecosystem of digital devices.

“Coming generations of consumers clearly expect to get their content wherever they want on it, on any device, when they want it,” said Bud Albers, the chief technology officer of the Disney Interactive Media Group, who will join Adobe executives at the convention to voice Disney’s support for the Flash format. “This gets us where we want to go.”

Adobe, based in San Jose, Calif., is among the oldest Internet powers but perhaps one of the least visible to users. Founded in 1983, the company first developed a common language for laser printers called PostScript and later built or bought popular desktop publishing tools like Illustrator and Photoshop.

In 2005, Adobe acquired Macromedia, the originator of Flash, and expanded from making software to create and share digital documents, like Adobe Acrobat and the PDF file format, to dominating the budding market of tools to create online graphics and video. Last year the company reported net income of $871.8 million on revenue of $3.6 billion.

According to Adobe, Flash is now on 98 percent of all computers, and about 80 percent of Web videos are viewed using it.

Adobe says Flash was installed on 40 percent of cellphones shipped last year, and it recently announced efforts to increase that penetration by abolishing the licensing fees it was charging handset makers, much as it offers the Flash player free to consumers and video sites like YouTube.

Adobe makes money on Flash by selling software to help companies create and deliver Flash content to the Web.

Some major players in the phone market do not support Flash. Most notably, Apple, maker of the iPhone, says Flash uses too much processing and battery power. Mr. Narayen says handset makers will ultimately not be able to resist, since it will make viewing the Web on a phone no different from surfing on a PC.

“Anyone who wishes to deliver Web browsing on smartphone devices, supporting Flash will be an integral part of the experience,” he said.

Despite its problems wooing Apple, Adobe considers the television screen the last great frontier for Flash. To support the new effort to bring Flash to the TV, it has signed partners including Intel, Comcast, Netflix and Broadcom, the company that makes many of the components that go into cable and satellite set-top boxes. (The New York Times Company has also agreed to support this initiative to bring Flash to the TV set.)

While television makers like Sony and Samsung are not involved yet, analysts say integrating Flash — or at least some kind of Internet video — into the living room television is inevitable.

“It’s hard to differentiate TVs these days. They’ve gotten about as big and thin as you can get them,” said Michael Gartenberg, an analyst at Interpret LLC. “This idea of being able to standardize on Flash-based content across devices and platforms will be something TV vendors can get excited about because it will distinguish their products.”

One company standing in Adobe’s way is Microsoft. Its rival to Flash, called Silverlight, is used by Netflix and the BBC, among others, and was used by CBS to stream the N.C.A.A. men’s basketball tournament and by NBC last year to stream the Olympics.

Microsoft says the second version of Silverlight has been installed on 300 million PCs since it became available six months ago. It also claims that Silverlight better supports live, high-definition video in what is called 1080p resolution, which is paramount to bringing Internet content to large HDTVs.

“I can’t imagine what could be more important on a television than high video quality,” said Brad Becker, director of rich client platforms at Microsoft — and a former Adobe executive. Adobe executives say the new Flash for televisions will support such high-definition video.

Some analysts are not counting out Microsoft just yet. They say the company has a significant presence in the living room with devices like the Xbox 360 game consoles that can stream movies to a TV. Microsoft, with annual revenue that is 17 times that of Adobe’s, also has the resources to finance an escalating competition.

“There hasn’t been a true competitor to Adobe for quite some time and Microsoft could potentially start bridging the gap between the PC and the TV even more effectively,” said Josh Martin, an analyst at the Yankee Group. “Maybe they could start putting out some of the fire that Adobe has long held.”

Apple Consolidating AV Cables Ahead of iPhone HD Launch (http://www.phonenews.com/apple-consolidating-av-cables-ahead-of-iphone-hd-launch-7648/)

Apple has advised Apple Authorized Resellers to begin placing on clearance both the Apple Composite AV Cable and Apple Component AV Cable. PhoneNews.com has learned that Apple will be consolidating these cables, ahead of the launch of the next iPhone.

Both current cables were not well received by the public. The cables first added encryption chips, which (upon the release of iPhone OS 2.0) made it impossible to use other, cheaper AV cables with Apple’s most advanced mobile devices (iPhone and iPod touch). In addition, many were unhappy that the Apple Component AV Cable did not support composite output, forcing customers to pay over $100 for the ability to output to both HDTV and SDTV displays.

Apple will remedy this with a cable, which is known simply as the Apple AV Cable. The cable will function similar to the Xbox 360 Component AV Cable. The consolidated cable will support both component and composite output, allowing users to plug in to both HDTV and SDTV displays without the need for multiple cables.

The reason that Apple is doing this has been confirmed by PhoneNews.com. The next generation of iPhone and iPod touch will make broad and sweeping changes to HD display capacity on the devices. First, Apple will likely offer at least one version of the iPhone and one version of iPod touch with an even higher resolution screen, targeting both Microsoft’s Zune HD, as well as HTC’s Touch HD and Touch Pro2.

However, Apple is also planning across-the-board output of HD video. Apple, realizing the lukewarm success of Apple TV, the company plans to focus both iPhone (and eventually, iPod) as the easiest way to watch HD videos from your PC.

Currently the iPhone and iPod touch do not exceed 480i and 480p (respectively) in terms of video resolution. However, the next iPhone and iPod touch will enable full HD playback, with 720p and 1080i output modes.

Multiple options will be given to users to get HD video onto their TV, via iPhone and iPod. First, consumers will be able to store HD shows on their devices directly. However, considering the limits of flash storage, this is a time consuming process. Enter Bonjour. Apple will also provide the ability for users to plug their iPhone into their HDTV, and gateway onto a user’s Wi-Fi network, and access their entire iTunes library on their HDTV.

The end result is that a user can sit at their HDTV, using an Apple AV Dock and an Apple Remote, controlling their iPhone much as they do an Apple TV today. This ensures that a new iPhone owner will be able to purcase, for under $100, all the equipment needed to access (via the iPhone) all of their computer-stored HD content, on their HDTV.

At under $100 (less than half the cost of an Apple TV), Apple will be able to take on low-cost video devices, as well as game consoles, with competitive advantage. Consumers will now have cheap HD access to their entire iTunes library, as well as portable HD playback of shows, videos, and photos on their device.

Apple has made great strides towards bridging the HD gap with content providers. The iTunes Store now accepts HD TV Shows from all major networks, as well as offering HD Movies. The latest iTunes update for Mac and PC also enables HD playback of rented movies (previously limited to Apple TV).

WoW!!

iPod and iPhone to both be bridges to get PC / Internet video on to the primary display.

That is pretty significant! With the upcoming Hulu iPhone app, this could be VERY big!!

Amazon Officially Adds HD Content, and It Looks Good (http://newteevee.com/2009/04/21/amazon-officially-adds-hd-content-and-it-looks-good/)

Amazon today started offering both movies and TV shows in HD, a welcome and rumored upgrade. I took the Video on Demand service out for a quick test drive, and found the HD video quality to be very good and the overall system simple to use.

Amazon Video on Demand lets you rent or purchase movies and TV shows from its library of about 40,000 titles on your computer or from your TV, with the help of a compatible set-top box. Amazon didn’t provide a specific number of HD titles available but a press announcement said users can browse through “hundreds of selections.” Compatible devices include some TiVo DVRs, Roku’s Digital Video Player, Sony’s Bravia Internet Video Link and Panasonic Vieracast. Most titles will cost $1 more to rent or purchase in HD: TV shows, which typically sell for $1.99 an episode in SD, will cost $2.99, and movies that go for $3.99 to rent in SD will cost $4.99 in HD.

I tested the HD streaming capabilities on Roku’s Digital Video Player, a small set-top box that also streams Netflix movies. You connect the $100 device to your TV and to your home network, either via Ethernet or wirelessly. From the comfort of your couch, you can browse all of the titles that Amazon has available, and can decide whether to rent or purchase a movie. (You will need to set up a pin online before making any purchases, though.)

I rented Tropic Thunder in HD, and viewed some of it while connected to my home network via Ethernet and some while connected wirelessly. When the Roku box was connected via Ethernet, the experience was a delight. The movie began playing almost instantly, and the picture looked nearly as sharp and clear as a Blu-ray movie or an HD title rented on demand from my cable company. It was a significant upgrade from an SD movie rented from Amazon, and also better quality than a Netflix title streamed in HD.

When I switched to a wireless connection, though, video quality degraded noticeably. The movie seemed to buffer a bit before starting, and the picture stuttered and broke up a few times. Even when I had the movie playing smoothly, the picture still never looked quite as sharp as it did when I had the Roku box connected via Ethernet. If my only option were to connect my Amazon-compatible device wirelessly, I don’t think I’d bother paying the extra $1 it costs to rent movies in HD as opposed to standard definition.

In both situations — wired and wireless — I fired up several computers on the same network, and had all of them streaming YouTube videos in HD. I noticed no performance hit on the Amazon movie at all, regardless of how much activity was taking place on my network. What might be of greater concern, though, is the amount of bandwidth you’ll be using, especially if your broadband provider is one of the many considering limiting the amount you use. I asked both Amazon and Roku if they knew the size of the files being streamed, but did not receive an answer in time for posting this. We’ll update with more information if we receive it.

If you already have a compatible Amazon streaming device, today’s announcement is a great news for you. But is it enough to make me run out and pick up one of those set-top boxes? Almost — but not just yet.

Amazon Instant HD page:

http://www.amazon.com/gp/feature.html/ref=amb_link_84165351_1?ie=UTF8&docId=1000364351&pf_rd_m=ATVPDKIKX0DER&pf_rd_s=center-2&pf_rd_r=0VJA8W17FAFRDRH44JRT&pf_rd_t=1401&pf_rd_p=474948071&pf_rd_i=1000364351

With long-form video slated as the fastest-growing form of Internet use, YouTube is upping its commitment with a number of new deals that will add longer content to its site.

This week, the Google unit said it reached agreements to exclusively debut the 90-minute environmental film Home on June 5 for English, French, German and Spanish-speaking countries and show four short films that will be exhibited at the Tribeca Film Festival in New York this week.

The agreements follow YouTube's announcements earlier this month that it will start offering free full-length movies and television shows on its site after it reached deals with content providers such as Sony, Lionsgate and Starz.

Long the world's most popular online-video Web site, YouTube, which was acquired by Google for $1.65 billion in 2006, attracted almost 90 million unique users in February, or triple the visitors to the No. 2 long-form video site, Yahoo!, Nielsen said in a report last week.

The popularity of long-form video sites boosted the amount of time people spent watching videos in February by 23% from a year earlier, making videos the second-fastest growing use of the Web after social networking, according to Nielsen. Additionally, the average video stream in February was about two-and-a-half minutes, or 22% longer than a year earlier, Nielsen said.


http://www.videobusiness.com/article/CA6654734.html

Anyone else remember someone making this rather lame argument? :D

For whatever reason, the media earlier this year became obsessed with the idea that the recession was driving people back to dial-up, despite not having any actual data to support this claim. Still, countless human interest stories surfaced featuring isolated examples of people thinking about ditching broadband, and all of them (be they the Associated Press, Tampa Tribune or Chicago Tribune) featured Earthlink pitching dial-up to cost conscious customers. Despite the endless free advertising, Earthlink's first quarter earnings (via Dan Frommer) indicate they still lost 160,000 customers (9%) on the quarter. Perhaps Netzero and Juno owner United Online (who jumped into the floral business last year to offset dial-up losses) will unveil the missing millions in dial-up subscriber additions when they post their earnings May 5.

http://www.dslreports.com/shownews/So-Much-For-DialUps-RecessionDriven-Resurgance-102140

PBS is testing a free online video portal with content ranging from such archived shows as Julia Child Cooking With Master Chefs and The NewsHour With Jim Lehrer to newer shows including environmentally themed content from such filmmakers as Jean Michel Cousteau.

PBS launched the portal last week as part of its commemoration of Earth Day, the organization said in a statement last week. PBS has about 200 hours of programming available on the portal, with a goal of approaching 1,000 hours by this summer, according to PBS spokesman Kevin Dando.

PBS is looking to broaden its audience with a larger Internet presence. Last September, the company launched a video player aimed at family audiences that now streams more than 1 million video clips weekly.

http://www.videobusiness.com/article/CA6654855.html

The Walt Disney Co. is taking a stake in Hulu.com. This means titles from The Walt Disney Studios library of films and full-length episodes of ABC television shows will join the online video site.

Disney joins NBC Universal, News Corp. and private equity firm Providence Equity Partners, who own Hulu in a joint venture.

Disney said Chief Executive Robert Iger, Disney/ABC Television Group President Anne Sweeney and Kevin Mayer, a Disney senior vice president, will join Hulu's board.

Financial terms were not disclosed.

http://www.variety.com/article/VR1118003024.html?categoryid=13&cs=1

Internet users face regular “brownouts” that will freeze their computers as capacity runs out in cyberspace, according to research to be published later this year.

Experts predict that consumer demand, already growing at 60 per cent a year, will start to exceed supply from as early as next year because of more people working online and the soaring popularity of bandwidth-hungry websites such as YouTube and services such as the BBC’s iPlayer.

It will initially lead to computers being disrupted and going offline for several minutes at a time. From 2012, however, PCs and laptops are likely to operate at a much reduced speed, rendering the internet an “unreliable toy”.
While the net itself will ultimately survive, Ritter said that waves of disruption would begin to emerge next year, when computers would jitter and freeze. This would be followed by “brownouts” – a combination of temporary freezing and computers being reduced to a slow speed.
Engineers are already preparing for the worst. While some are planning a lightning-fast parallel network called “the grid”, others are building “caches”, private computer stations where popular entertainments are stored on local PCs rather than sent through the global backbone.

Telephone companies want to recoup escalating costs by increasing prices for “net hogs” who use more than their share of capacity.

etc. http://technology.timesonline.co.uk/tol/news/tech_and_web/the_web/article6169488.ece

When discussing yesterday's stellar earnings in a conference call with analysts, Comcast cable division president Steve Burke spent a lot of time talking about "Project Cavalry," a bandwidth-reclamation effort Burke calls "one of the most important projects for us this year." The plan involves spending roughly a billion dollars to reclaim 40 to 50 channels of analog spectrum, freeing up bandwidth for DOCSIS 3.0, more HD channels, and more VOD. "This project is going to deliver more additional bandwidth than any improvement we've ever made," says Burke. Cable Digital News has a great write up on the project, and Seeking Alpha has the transcript of Comcast's entire earnings call, which touches several times on the company's aggressive DOCSIS 3.0 deployments.

http://www.dslreports.com/shownews/Comcasts-Billion-Dollar-Project-Nets-Big-Bandwidth-102221

(Misc FUD removed) http://technology.timesonline.co.uk/tol/news/tech_and_web/the_web/article6169488.ece

Already being discussed and been refuted here: http://www.avsforum.com/avs-vb/showthread.php?t=1143504

An analysts take on Disney's investment and integration with Hulu.

Disney is changing with the times.

Online video destination Hulu just gained its third fairy godmother. Walt Disney (NYSE: DIS) joined ranks with News Corp. (NYSE: NWS) and General Electrics' (NYSE: GE) NBC Universal unit as it bought a nearly 30% stake in Hulu. Now, the only major network missing from that one-stop all-you-can-watch site is CBS (NYSE: CBS).

You can't watch Ugly Betty or Desperate Housewives on Hulu just yet (but Scripps does offer Desperate Landscapes from its DIY Channel). For now, you still have to visit ABC.com for that -- but since ABC's own video service is quite good, that's not too bad of a trade-off.

Given the strength of Disney's own solution, one can only surmise that ABC parent Disney wanted to have a hand in how commercial video content gets distributed and watched from now on. Hulu is a strong contender for the title of "most popular full-length video aggregator" in the next few years. Other alternatives include TiVo (Nasdaq: TIVO), which appears to be growing its digital video recorder expertise into a software-based media hub, and Netflix (Nasdaq: NFLX), which is doing the same thing based on a decade of movie rental experience.

Disney, like NBC and News Corp.'s Fox before it, clearly saw potential in Hulu and didn't want to leave such a powerful toll entirely in the hands of the competition.

http://msn.fool.com/investing/general/2009/04/30/disney-has-seen-the-future-and-its-hulu.aspx

Has anyone seen a maxter matrix of all the video download services with what plays on what box, cost, etc.?

Convergence baby!

There’s one less set-top box needed today, thanks to a new partnership between movie on-demand service Vudu and IPTV company Entone.

Starting this summer telecommunications companies employing Entone’s IPTV technology (more than 50 worldwide) will be able to offer Vudu’s library of more than 14,000 movies and TV titles to their customers, without a need for the Vudu box.

Steve McKay, CEO of Entone, said the two companies began working on the concept at the 2008 Consumer Electronics Show in Las Vegas.

“The thinking around that time was that everyone was pitting the over-the-top guys (video delivered outside of cable and satellite) against the operators,” he said. “Consumers had to choose between pay TV services and over-the-top Internet video services where the latter was something you did when you were not watching TV.”

This is the first time those two “competing visions” will come together in one service.

“By marrying the two concepts, your online movie library is now available as part of your core TV viewing experience from the same user interface and remote control,” McKay said.

Using existing in-home cabling, Entone’s IPTV set-top boxes enable viewing on all TVs in a household.

“Entone’s approach of embracing rather than defending against online video services is a win-win-win for operators, content providers and consumers,” he said.

http://www.homemediamagazine.com/electronic-delivery/vudu-partners-with-iptv-company-entone-15597

The Digital Entertainment Group (DEG) May 4 said it added consultant Deloitte and San Diego-based video format creator DivX as associate members.

Deloitte advises more than 500 media and entertainment clients in the United States, while DivX last month announced its technology would be incorporated in LG Electronics’ new digital HDTV line to enabled playback of Internet-based HD videos in 1080p resolution.

“As our industry continues to evolve, we invite the participation of all companies to help us explore new horizons for entertainment technology,” said Ron Sanders, president of both DEG and Warner Home Video.

http://www.homemediamagazine.com/news/deg-expands-member-company-scope-15594

Sweet!! It looks like this means better integration of the various sources of streaming video to the Television display device!

Macrovision Solutions Corp. has brought HDTV company Vizio on as the latest company to license Macrovision’s interactive program guide (IPG) technologies.

Tom Carson, EVP of sales and services for Macrovision, added, “Vizio’s licensing agreement for our IPG technologies underscores the importance that manufacturers place on helping their customers find, manage and enjoy the plethora of digital content that is available to them.”

http://www.homemediamagazine.com/hdtv/vizio-licenses-macrovisions-interactive-program-guide-15595

It’s not enough for studios to put movies and TV shows online and wait for consumers to find it. To build viewership, and in turn revenue, executives on a panel at Digital Hollywood here Tuesday said they’re finding they have to market to consumers through social networks and merchandise titles so they are easy to find.

Everyone seems to agree that for digital to grow, it must be easy for consumers to play content back on multiple devices, just as they can with DVDs.

Paramount's Ducard predicted a year from now digital will include more bells and whistles, with studios offering consumers “more than just movies, but digital ownership on par with physical.”

The companies that win will be the ones that serve consumers best. As Blockbuster OnDemand senior VP and general manager Bruce Anderson said on an earlier panel Tuesday, “consumers are going to win.”

On both panels, Apple, Netflix and the Roku box won the most praise.

http://www.videobusiness.com/article/CA6656739.html

Another article on the Vudu/Entone deal, with some additional details.

Entone, a provider of Web-based TV interactivity through telecommunication partners, has signed on to offer Vudu’s library of more than 14,000 movies and TV titles later this summer.

The about 200,000 Entone subscribers will have access to Vudu's library, including the video-on-demand service's high-definition downloads, through Entone’s set-top box. Entone’s ‘media hub’ is deployed through about 70 telephone companies.

Many online film services, such as iTunes and Xbox Live, offer high-def content but as streaming/rental options. In February, Vudu became the first company to offer permanent high-def downloads as potential competition to Blu-ray Disc. Vudu launched with a selection of 50 such high-def title options, from such companies as Magnolia Pictures and First Look Studios.

“This arrangement brings together the best of live television, as supported by Entone’s market-leading IPTV home connectivity products, with the best of Internet on-demand movies, as supported by Vudu’s vast movie library from every major Hollywood studio and over 40 independents,” said Steve McKay, CEO of Entone.

Edward Lichty, executive VP of strategy and content for Vudu added, “IPTV is becoming an option for consumers, and we want consumers to get access to Vudu through the devices they already have in their home. Entone’s integration with Vudu is a great consumer experience, and we are looking forward to Vudu’s inclusion in the next generation of devices to be rolled out by Entone and its telco customers.”

http://www.videobusiness.com/article/CA6656867.html

Hulu, the Internet TV venture backed by NBC Universal, News Corp. and The Walt Disney Co., announced it has added popular international TV shows and movies - including content from Britain, Japan and India - but the service, for now, is still available only to U.S. users

The new content includes Bollywood films and hit U.K. television shows from Endemol, as well as Japanese anime.

Hulu in a statement confirmed that the Web site is still restricted to viewers in the U.S. and will remain that way for the time being. Hulu is not disclosing a timeframe regarding possible international expansion at this time.

Currently, Internet users who try to access Hulu from outside the U.S. see a message that says: "Hulu is committed to making its content available worldwide. To do so, we must work through a number of legal and business issues, including obtaining international streaming rights."

In March, the company hired Johannes Larcher, who previously ran international operations for Friendster and Overture, as senior vice president of international operations.

Meanwhile, Hulu posted a job listing earlier this week seeking a director of international business development, who will "help build a service that lets people find and enjoy the world's premier content when, where and how they want it," a role that will include defining regional and country-specific market-entry strategies.

http://www.multichannel.com/article/231706-Hulu_Adds_International_TV_Shows_But_Only_For_Americans.php

yes i am able to download video files

Apple files patent for download kiosk (http://www.videobusiness.com/article/CA6657639.html)

MAY 11 | DIGITAL: Just as the digital music and movie kiosk business appears poised to launch, it looks like startup companies in the space could face some heavyweight competition from Apple.

Apple filed a patent in 2007 for a digital entertainment kiosk capable of delivering movies and music to portable devices over a wireless connection. The kiosks would be placed in areas where wi-fi isn’t available, such as on airplanes and in airports, according to the filing.

AppleInsider dug up the patent last week.

In the filing, Apple says it will deliver movies over a “virtual physical connection” between portable devices, mobile phones, etc. and the kiosk.

Apple says it chose to use a wireless connection rather than requiring that a device be hooked up to it because “the continuous engagement and disengagement of the media device connector may result in excessive wear and failure of the connector.”

Apple says the kiosks could be placed anywhere and “address deficiencies” in other systems and methods for delivering media.

“The media distribution system advantageously enables the distribution of media content to a media device via a [kiosk] residing in virtually any location such as an airport, hotel, stadium, train station, shopping mall, stores, planes, ships, public transportation vehicles and the like,” according to the filing.

Users could not only download new content to their devices, they also could access other digital content they own.

Sensors in the kiosk would be able to tell when a portable device (presumably an Apple portable) was nearby.

The kiosks would be filled with popular content, but it also would be able to connect with the iTunes store so that users could download other content.

Earlier this year, Warner Bros. and Paramount Digital Entertainment became the first studios to sign deals to offer downloads through digital kiosks in an agreement with MOD Systems. MOD, which is backed by heavyweights Toshiba and NCR, is in talks with three retailers to put kiosks in stores in the second half of the year in a pilot launch. MOD’s kiosks would allow users to save movies onto an SD memory card, the type used to store digital photos. Users would save the movie to the card and then place the card in a compatible device or use a bridge device to watch it on a TV.

Online video-on-demand service Vudu, which offers movies and TV shows through its own set-top box for a fee, is bringing in some ad-supported content.

Vudu has partnered with Brightcove to make the latter's content deals available via the Vudu box. The first content available will be music videos from Sony Music's MyPlay Video Network affiliate program.

The partnership is a first for Brightcove, whose content was only available on Web sites prior to this deal. The Vudu deal makes Brightcove's ad-supported content playable on TVs.

Brightcove director of technology partnership Chris Johnston said, "The partnership announced today with Vudu is a significant step forward for media businesses that want to centrally manage distribution and monetization across the Web while also taking advantage of the high-quality TV experience Vudu enables."

Vudu executive VP of strategy and content Edward Lichty added that the deal means content owners can "make all of their online video available on the television without changing their monetization strategy."

http://www.videobusiness.com/blog/1730000173/post/600044460.html

Epix To Use Akamai's HD Streaming Service (http://www.multichannel.com/article/232290-Epix_To_Use_Akamai_s_HD_Streaming_Service.php)

Movie Network From Paramount, MGM, Lionsgate Plan to Offer Full-Length Movies Online

By Todd Spangler -- Multichannel News, 5/12/2009 9:01:57 PM MT

Epix, the fledgling movie service formed by Paramount, MGM and Lionsgate, is planning to deliver full-length HD movies over the Internet using a dynamic-streaming feature offered with Akamai Technologies' content-distribution network.

Epix previously said it was expecting to launch initially as a broadband-video service in May, followed by the linear cable channel in October.

Akamai is offering the dynamic-streaming feature through Adobe Flash Media Server 3.5. With the feature, video playback adapts to the capabilities of users' computers, adjusting the bit rate of the video stream for lower-speed processors or slower Internet connections.

Epix is aiming to provide new releases, catalog titles and original content over a variety of platforms, including TV, computers and mobile devices. Epix has not announced carriage agreements with pay-TV providers.

"The Epix model of commercial-free, uninterrupted current Hollywood movies will set a new online content bar," Epix chief digital officer Emil Rensing said in a statement. "Akamai's dynamic streaming solution enables us to be one of the first to provide the accessibility, quality and convenience which today's digital consumers desire. We're excited to build our online ecosystem with a partner who is also intent on delivering tomorrow's technology today."

Epix's titles are expected to include The Curious Case of Benjamin Button, Cloverfield, Defiance, Drillbit Taylor, The Duchess, How She Move, Indiana Jones and the Kingdom of the Crystal Skull and Iron Man. In addition, the service also have the rights to all 17 remastered James Bond movies, as well as Raiders of the Lost Ark, Indiana Jones and the Temple of Doom and Indiana Jones and the Last Crusade.

Akamai and Adobe set up a Web site to demonstrate the dynamic-streaming technology at www.streamflashhd.com. The companies expect the solution to be commercially available before the end of June.

CBS said today it will begin stream a sampling of CSI, NCIS, How I Met Your Mother episodes in not just HD, but 1080p HD, equalling quality delivered by Blu-ray. Of course, you'll have to watch it on the computer, so maybe not quite.

Hulu and others who have also added HD streams and downloads in the last year, though Hulu's and most others are only 720p HD. CBS allows viewers to choose between HQ, HD and 1080p for its high definition streams. The 1080p streams are also available on CBS-owned streaming site TV.com.

http://www.videobusiness.com/blog/1730000173/post/1220044522.html

http://www.cbs.com/hd/

Yikes. For the arm of a tech based company that is a pretty startling statement.

BAD INTERNET: The panel was about the future of filmmaking, but that didn’t mean anyone had to like what they saw. “I’m a guy who doesn’t see anything good having come from the Internet,” said Sony Pictures Entertainment chief executive officer Michael Lynton. “Period.”

At a breakfast cohosted by the S.I. Newhouse School of Public Communications at Syracuse University and The New Yorker Thursday, Lynton wasn’t just trying for a laugh: He complained the Internet has “created this notion that anyone can have whatever they want at any given time. It’s as if the stores on Madison Avenue were open 24 hours a day. They feel entitled. They say, ‘Give it to me now,’ and if you don’t give it to them for free, they’ll steal it.”

Co-panelist Nora Ephron, who started her career in print, said the Internet has had a greater effect on “our beloved print than it’s had on the movie business.” But, she conceded, “We’re in the last days of copyright, if you want to be grim about it….Stop it. I dare you.”

Lynton tried out another simile. Referring to the Obama administration’s goal to spread broadband access without, he said, regulating piracy, Lynton compared it with building highway systems without speed limits or driver’s licenses. “We do need rules of the road,” he said. (Lynton may not have liked Ephron’s chosen analogy for the way some people in the movie business are paid: “It’s a giant Ponzi scheme set up to compensate a few people at unbelievable rates,” she said, adding, “These people live like pashas. You cannot imagine the scale of wealth in Hollywood. People live like that here, but we live in apartments so you can’t see as much.”)

Though Anne Hathaway, also on the panel and wearing Stella McCartney, lamented the Internet “inhibits your ability to get lost,” either in a role or in watching a film, she shrugged off moderator Ken Auletta’s question about whether the blogosphere had coarsened coverage of actors like her. “It was always true,” she said. “It’s just giving everyone a bathroom wall to write exactly what they think.”

— Irin Carmon

http://www.wwd.com/media-news/fashion-memopad/memo-pad-uniqlo-nabs-deyn-bad-internet-classic-martha-2136751?src=rss/recentstories/20090515#/article/media-news/fashion-memopad/memo-pad-uniqlo-nabs-deyn-bad-internet-classic-martha-2136751?page=2

Yikes. For the arm of a tech based company that is a pretty startling statement.



http://www.wwd.com/media-news/fashion-memopad/memo-pad-uniqlo-nabs-deyn-bad-internet-classic-martha-2136751?src=rss/recentstories/20090515#/article/media-news/fashion-memopad/memo-pad-uniqlo-nabs-deyn-bad-internet-classic-martha-2136751?page=2

More to the point, it is an ignorant and fear based statement. Anyone, in any field who can say “I’m a guy who doesn’t see anything good having come from the Internet, Period." is out of touch.

I really hope this gets picked up by a real news outlet and not just some fashion blog. If it does, this fool is going to be backpedaling so fast that he is going to have no idea which way is up.

I can see the headlines now... "Sony exec states '(Nothing good has come) from the Internet".

Vivendi Entertainment has secured the U.S. DVD, digital and mobile distribution rights to the Palisades Tartan catalog, which includes 2004 Cannes Grand Jury Prize winner Oldboy.

The deal will make Palisades Tartan’s blend of Asian horror and arthouse titles available for the first time to download and streaming services.

Other Palisades Tartan highlights from its Asia Extreme and Art House labels include Shutter (The Original), 9 Songs, Red Road and Silent Night.

Prior to selling its assets to Palisades Pictures in 2008, Tartan Video U.S.A. had distributed its titles through Genius Products. Financial problems led U.K.-based Tartan Films to shutter its U.S. operations, selling Tartan Video U.S.A’s 100-title library to Palisades. Ultimately, Palisades also acquired a majority of Tartan Films U.K.’s library of more than 400 titles.

“The Palisades Tartan catalog features an incredible slate of cutting-edge and innovative feature films,” said Tom O’Malley, Vivendi Entertainment president. “We are thrilled to be in business with them, as we have admired this library for a very long time.”

Vin Roberti, chairman of Palisades Tartan, added, “Since acquiring the Tartan catalog in 2008, we have entertained a number of significant offers for the right to distribute our product. Vivendi Entertainment not only provides a strong financial partner but an incredibly talented management team. We feel strongly that this team has the tools and expertise to market our extraordinary catalog to its fullest potential for the benefit of our licensors and shareholders.”

http://www.videobusiness.com/article/CA6659174.html

Microsoft Adds Netflix to Windows Media Center (http://www.pcworld.com/businesscenter/article/165216/microsoft_adds_netflix_to_windows_media_center.html)

Microsoft is adding Netflix to the list of content providers in its Windows Media Center feature for Vista PCs as part of the company's drive to give people more entertainment options on their computers.

Microsoft already has a deal to deliver movies from Netflix through its Xbox game console, but people can only play back movies that are available for instant streaming on that platform. The Netflix application in Windows Media Center allows people not only to instantly stream movies that are available that way, but also to manage their own physical disc queue for DVDs they receive from Netflix in the mail, said Ben Reed, senior product marketing manager at Microsoft.

Like Netflix's "Watch Instantly" application -- which allows people to watch titles available for streaming from Netflix via a Web browser -- the Windows Media player application uses Silverlight to deliver the video.

People with a Netflix account have access to more than 12,000 videos on demand via the Netflix application in Windows Media Player in Vista; they also can manage their physical disc queue, which gives them access to 100,000 titles, Reed said. However, they can't view those instantly: They still have to receive physical DVDs in the mail to watch those titles.

Windows Media Center used to be a distinct version of Windows, but Microsoft made it a feature in premium versions of the OS when it released Vista. This was part of an overall move to add more multimedia-delivery capabilities to PCs. Delivering entertainment on PCs -- an increasingly popular way for people to watch content -- is also a way for Microsoft to deliver advertising and further monetize the platform.

Windows Media Center also will be built into Windows 7, with new features to make it even easier for people to find entertainment they want to watch, Reed said. One of those is a guide for both Internet TV channels and broadcast channels, differentiating between the two by displaying them in different ways in the guide.

Microsoft also has added a "Turboscroll" feature to Windows Media Center in Windows 7, which makes it far faster for people to scroll through and find specific entertainment content they're looking for, Reed said.

Microsoft has said it plans to make Windows 7 available in time for the holiday shopping season, which is typically the end of November and December. Reed would not comment on whether the Netflix application would be available in Windows 7.

http://www.neowin.net/images/uploaded/netflix1.png

Despite rise in streaming, 99% of all video watched on a TV

Internet streaming and watching video on a mobile phone are increasing, but doesn't hold a candle to watching television. Americans watch an all-time high of 153 hours on average per month, according to the latest viewing data from Nielsen. ...

http://static.arstechnica.com/media/nielsen_q109_tv_viewing.png

http://arstechnica.com/media/news/2009/05/despite-rise-in-streaming-99-of-all-video-watched-on-a-tv.ars
http://blog.nielsen.com/nielsenwire/wp-content/uploads/2009/05/nielsen_threescreenreport_q109.pdf

The Dream of Streaming

http://www.homemediamagazine.com/streaming/-dream-streaming-15861

Netflix launches Web-application section (http://www.videobusiness.com/article/CA6659178.html)

Netflix last week launched a section on its Web site dedicated specifically for applications that can be used by subscribers looking to order movies from either their mobile devices, from the Twitter microblog or from Web sites such as movie-review site Rotten Tomatoes and the New York Times movie section.

The company’s “Netflix App Gallery” had 16 applications as of this afternoon with prices ranging from free to $2.99. The gallery will be updated weekly to reflect new applications being created by third-party technology developers, Netflix director of engineering Michael Hart wrote on the company’s community blog late last week. Included in the gallery are nine different applications for mobile devices as well as an application that allows customers to manage their movie queues using microblog Twitter, Hart wrote.

In addition to applications allowing users to order movies from the New York Times, Rotten Tomatoes and Facebook Web sites, the gallery includes nine different applications specifically for mobile devices as well as an application that allows customers to manage their movie queues using Twitter, Hart wrote

The application page reflects the growing propensity for Netflix’s 10.3 million customers to order movies using devices other than personal computers. As of last month, about a dozen developers have created Netflix applications for Apple’s iPhone, and there are already applications for such devices as Research In Motion’s BlackBerry.

Meanwhile, application developers are tapping into a growing market of mobile-device owners who are looking for more ways to choose their evening’s entertainment. Annual global shipments of mobile devices are expected to grow by more than 50% a year, from about 54 million units in 2007 to more than 400 million units in 2012, research firm iSuppli said in a March report.

http://images.ientrymail.com/webpronews/article_pics/netflix-app-gallery.jpg

Despite rise in streaming, 99% of all video watched on a TV

Internet streaming and watching video on a mobile phone are increasing, but doesn't hold a candle to watching television. Americans watch an all-time high of 153 hours on average per month, according to the latest viewing data from Nielsen. ...

http://static.arstechnica.com/media/nielsen_q109_tv_viewing.png

http://arstechnica.com/media/news/2009/05/despite-rise-in-streaming-99-of-all-video-watched-on-a-tv.ars
http://blog.nielsen.com/nielsenwire/wp-content/uploads/2009/05/nielsen_threescreenreport_q109.pdf

Take off the blinders - I stream video to my TV via Vudu. That chart doesn't tell the whole story.

Take off the blinders - I stream video to my TV via Vudu. That chart doesn't tell the whole story.

The chart is funny because it is totally irrelevant. Can you imagine what the a chart that showed how many people watch TV shows on their TV (via cable, broadcast, DVD, etc) versus the number of people who watch TV shows via Blu-ray?

The facts are that streaming is increasing at a healthy pace and NOT cannibalizing broadcast media! A true win/win for everyone involved.

From that same article:

About 131 million people are watching an average of three hours of video per month via the Internet, according to Nielsen's data. That's up from 116 million watching a monthly average of two hours this same time last year. Additionally, about 13 million mobile phone subscribers—up 52 percent from nearly 9 million last year—report watching an average of 3.5 hours of video a month on a mobile phone (time measurements are not available from Q1 last year).

Those are significant increases. The main factors fueling these changes are increases in broadband availability and bandwidth nationwide, increased exposure of services like Hulu and YouTube, and an increased proliferation of advanced, video-capable smartphones for mobile phone viewing.

DIGITAL: Just 3% of consumers bought a movie download, but 7% digitally rented

http://www.videobusiness.com/article/CA6660103.html

Survey: Only 8% of teens watch TV online

http://www.hollywoodreporter.com/hr/content_display/technology/news/e3ibb9b7bb2eb298a660a34b085e86133a7

Baker & Taylor is expanding its digital distribution capabilities by partnering with technology provider OverDrive.

Wholesale distributor Baker & Taylor will create a Digital Media Library, powered by OverDrive, to deliver retail clients such downloadable content as e-books, audio books, music and video. Additionally, clients can work with Baker & Taylor to offer their store customers digital content directly for playback on a variety of devices.

OverDrive CEO Steve Potash said, "The market timing for this alliance is perfect. The demand for digital media is exploding, and Baker & Taylor is in a prime position to give customers a bundled solution, digital content in multiple formats along with physical media.”

http://www.videobusiness.com/article/CA6660547.html

Overnight video star Hulu is close to breaking even, NBC president and CEO Jeff Zucker said at the Wall Street Journal’s AllThingsDigital conference Thursday.

Now Hulu, a joint venture between NBC Universal, News Corp. and Disney, “has to figure out the monetization game,” he said. One additional way the ad-supported site might boost revenue is through subscriptions, which Zucker said Hulu is open to, according to the WSJ’s recap.

Hulu has shot up to be the third most popular video site since its launch last year, but has come under some criticism from users lately for pulling some content and limiting viewing beyond the computer. Earlier this year, Hulu pulled FX show It’s Always Sunny in Philadelphia.

Zucker said the goal is to eventually put all shows online, but didn’t commit to how many episodes of shows would go online at a time.

Zucker said digital sales remain small for the studio. Asked about his famous comment that studios are replacing analog dollars with digital pennies as they move content online, Zucker said digital revenue is improving.

“What I have said is we are now up to digital dimes. I think that’s progress,” he said. “We still have a 90¢ gap. Hopefully, I can come back and, in a year or two, we will be at digital quarters.”

Zucker said NBC would consider putting its shows on Facebook and other platforms.

“We’ll put our shows anywhere. We want to get paid for it,” he said. “But if we can’t get paid for them, then we can’t afford that cost structure.”

http://www.videobusiness.com/article/CA6661342.html

Disney Invokes Vudu For HD Movies (http://www.multichannel.com/article/278157-Disney_Invokes_Vudu_For_HD_Movies.php)

Buena Vista Home Entertainment Offers 60 HD Titles Download-To-Own Via Internet Set-Top

By Todd Spangler -- Multichannel News, 6/4/2009 8:19:34 AM MT

The Walt Disney Co.'s Buena Vista Home Entertainment division will offer more than 60 download-to-own titles in high-definition through Vudu's Internet-connected set-top boxes -- the first online service through which Disney is distributing HD movies.

Vudu plans to offer every HD release from Buena Vista Home Entertainment for purchase as those titles are added to the service, day-and-date with DVD release.

Initial titles available through Vudu from Disney-owned studios, including Touchstone Pictures and Miramax Films, will include Doubt, High School Musical 3, No Country for Old Men, The Sixth Sense and National Treasure.

"Consumers are expanding the way that they acquire and watch films and Buena Vista Home Entertainment wants to support this growing medium of digital delivery," said Lori Macpherson, Buena Vista Home Entertainment's general manager for North America, in a statement. "We are pleased to work with Vudu as a distributor of our HD films for digital purchase."

The Disney-owned movies offered through Vudu will be available for purchase in both 1080i HD and Vudu's HDX format, encoded at variable bit-rate in MPEG-4 H.264 in 1080p at 24 frames per second.

Vudu -- which has not disclosed how many subscribers it has signed up for its service -- has signed distribution deals with major U.S. movie studios and more than 50 independent studios and distributors. The company currently offers more than 15,000 movies and TV episodes, including more than 2,000 HD movies.

Under a separate deal announced last month, Sony Music Entertainment will offer free music videos on Vudu's set-tops, through Sony's partnership with Brightcove to deliver ad-supported Web content to the device's users.

In addition, IPTV gateway vendor Entone Technologies recently announced plans to make Vudu's online video service available to telcos through its devices.

Vudu's investors include venture-capital firms Greylock Partners and Benchmark Capital. The privately held company was founded in 2004. Question to ponder:

So how can one small company like Vudu that has only been around for 1.5 years, have 2000 HD movies available, while blu-ray, with support from the entire movie and CE industry and 20 million players sold, only has 1500 titles after 3 full years on the market?

So how can one small company like Vudu that has only been around for 1.5 years, have 2000 HD movies available, while blu-ray, with support from the entire movie and CE industry and 20 million players sold, only has 1500 titles after 3 full years on the market?

Ive wondered this myself; how does vudu seem to be able to remaster so many movies in multiple versions of differing HD quality in so short a time period when it seems like such a long time frame for studios to be able to transfer existing movies to blu-ray and/or large companies such as amazon & netflix not being able to output the same amount of titles or even same level of quality.

Ive wondered this myself; how does vudu seem to be able to remaster so many movies in multiple versions of differing HD quality in so short a time period when it seems like such a long time frame for studios to be able to transfer existing movies to blu-ray and/or large companies such as amazon & netflix not being able to output the same amount of titles or even same level of quality.

All movies are shot in "HD" and don't need remastering or any processing to be shown in HD. However, encoding and other processing is needed to get a movie on a Blu-Ray disc.

fafner

All movies are shot in "HD" and don't need remastering or any processing to be shown in HD. However, encoding and other processing is needed to get a movie on a Blu-Ray disc.

fafner

Semantics aside, the point still applies that it takes every major studio and also large companies such as netflix & amazon a much longer time period to release a fraction of the movies that vudu is releasing. so how is this small company able to accomplish what these large companies can not?

The economics of mastering a blu-ray disc and producing enough copies to justify the production is what prevents blu-ray from being able to keep up with the Vudu library. Vudu doesn't carry any of the overhead associated with producing a big pile of future landfill materials.

The economics of mastering a blu-ray disc and producing enough copies to justify the production is what prevents blu-ray from being able to keep up with the Vudu library. Vudu doesn't carry any of the overhead associated with producing a big pile of future landfill materials.

The time lines for actually encoding these movies is what is being discussed.

The timeline for releasing physical discs is equally economics driven. If they dropped a 1000 new blu-ray "catalog" titles on the shelf of Best Buy tomorrow it would take a very long time to break even on producing the physical inventory, not to mention an actual profit. Those are real costs that have to be accounted for. The physical media strategy seems to be to let out a few titles at a time and wait until they are purchased in enough numbers to make a profit. It is a supply/demand strategy built around an iron fist control of the supply that hopes it can create demand.

That is deflecting from the conversation and does not explain away how vudu is encoding movies faster then netflix, amazon and every major studio in the country.

That is deflecting from the conversation and does not explain away how vudu is encoding movies faster then netflix, amazon and every major studio in the country.

Do you think cable and satellite have to do encoding for their HD broadcasts like Blu-Ray does? No they just stream the movies. Same with Hulu.

fafner

Do you think cable and satellite have to do encoding for their HD broadcasts like Blu-Ray does? No they just stream the movies. Same with Hulu.

fafner

What does that have to do with Vudu encoding faster then blu-ray studios, netflix and amazon?

Well for one VUDU has been doing it longer than them. (for HD)

http://www.blogcdn.com/www.engadgethd.com/media/2009/06/hulublockedps3_fwc_06272009.jpg

Hulu to PlayStation 3 browsers: "This video is not available on your platform" (http://www.engadgethd.com/2009/06/27/ps3-owners-get-boxeed-hulu-this-video-is-not-available-on-yo/)

The PlayStation 3 has kept access to Hulu even without PlayOn or other workaround while others were blocked -- with the exception of its own remote friendly desktop software -- thanks to its browser's Flash support, but this morning multiple users have reported the above message indicating "Unfortunately, this video is not available on your platform. We apologize for any inconvenience." Some odd glitch related to the recent 2.80 firmware update or other temporary problem, or is this the latest platform to get the Boxee treatment when trying to bring streaming video to TV screens? We've reached out to Hulu for an explanation but so far, haven't heard a response. Interestingly, the Hulu TOS was just updated as of June 26, and although we haven't found any PS3-specific passages, changing a browser's user-string to match the console reveals it is definitely being specifically blocked.

Companies that sell video-on-demand systems and software have cranked up efforts to deliver products for high-capacity "RS-DVR" services, after the Supreme Court this week declined to review a ruling that Cablevision Systems' network-based digital video recorder complies with copyright laws.

Most current VOD systems may not be suited to cost-effectively build a remote storage DVR service, as it has been deemed legal, according to industry executives. But vendors including SeaChange International, Cisco Systems, Arris and Concurrent are gearing up to deliver VOD systems with much higher ingest and storage capacity to meet those higher performance requirements.

Cablevision's RS-DVR is designed to provide subscribers with dedicated storage space in the headend. That architecture allowed the MSO to successfully argue that the service was no different than an in-home DVR.

"Technically, we're capable of building these things," he said. "The questions come down to the financial aspects of building these systems." He said he expects to see VOD servers that are "financially viable" within 12 to 24 months.

Cisco, meanwhile, also is looking to turn up the volume. Currently, the vendor's Content Deliver Engine 420 server provides 1,000 channels of ingest and 24 Terabytes of storage in a 4RU system. "You'll see the economics become increasingly attractive to do time-shifted services," said John Wheeler, director of video product marketing and business development.

Cablevision's RS-DVR, as described in court documents, was developed in the testing phase with VOD servers from Arroyo Video Solutions, which Cisco acquired in 2006. Wheeler declined to comment on Cisco's current work with the MSO on the network DVR project.

Arris, for its part, is shooting to deliver a version of the ConvergeMedia XMS server that provides 2,500 playout streams and 2,500 hours of storage in a 2RU configuration by the end of the year, said Cliff Aaby, principal system architect for on-demand platforms. Overall, the XMS platform would be capable of providing up to 20,000 streams to serve RS-DVR-type applications.

Other aspects of a cable operator's infrastructure must also be modified to deliver an RS-DVR system, Aaby noted. The interactive program guide must be upgraded, and an MSO would certainly need to increase spectrum allocated to unicast services.

In areas Time Warner Cable has introduced Start Over, Concurrent's Brickmeier noted, VOD utilization rates have roughly doubled compared with traditional on-demand services, to more than 20%. With a network DVR service, the utilization rates would be even higher, in the 30% to 40% range, he said.

Brickmeier predicted a hybrid model for network DVR will emerge, in which the most popular content is licensed -- as in the Start Over model -- for optimal efficiency, while lower-demand programs are recorded by an RS-DVR system.

http://www.multichannel.com/article/307338-VOD_Vendors_Fast_Forward_Network_DVR_Plans.php

All movies are shot in "HD" and don't need remastering or any processing to be shown in HD. However, encoding and other processing is needed to get a movie on a Blu-Ray disc.

fafner

Come again? I'm not sure I fully understand what you are claiming and I think you are overstating things.

What's the difference between encoding a movie for Vudu or for Blu-ray from a master? What "other processing" is required for Blu-ray since you mentioned it in order to get on Blu-ray disc? It is true that any movie filmed has the ability to be presented in HD because of the traditional camera having still a higher resolution then 1080p but this doesn't mean it comes prepackaged and ready to stream.

How can you just stream any movie as HD through Vudu service? They encode movies just like studios do for Blu-ray.

What you said doesn't make sense.

Same process and the final product is AVC or VC1 video and TrueHD, DTS-MA or LPCM for Blu-ray and dolby digital for VUDU. If anything Vudu doesn't offer uncompressed audio so Blu-ray actually has it easier in terms of just slapping and transferring the master audio track to the disc. Vudu has to encode every audio track as Dolby Digital. In addition, processing for Vudu needs to be done carefully in order to allow streaming optimization and that means that data encoded needs to be done a certain way to allow quicker caching (smaller data chunks) so you can start watching a movie right away.

VUDU audio tracks are encoded in Dolby Digital plus. Then the box transcodes it to DD for output.

Come again? I'm not sure I fully understand what you are claiming and I think you are overstating things.

What's the difference between encoding a movie for Vudu or for Blu-ray from a master? What "other processing" is required for Blu-ray since you mentioned it in order to get on Blu-ray disc? It is true that any movie filmed has the ability to be presented in HD because of the traditional camera having still a higher resolution then 1080p but this doesn't mean it comes prepackaged and ready to stream.

How can you just stream any movie as HD through Vudu service? They encode movies just like studios do for Blu-ray.

What you said doesn't make sense.

Same process and the final product is AVC or VC1 video and TrueHD, DTS-MA or LPCM for Blu-ray and dolby digital for VUDU. If anything Vudu doesn't offer uncompressed audio so Blu-ray actually has it easier in terms of just slapping and transferring the master audio track to the disc. Vudu has to encode every audio track as Dolby Digital. In addition, processing for Vudu needs to be done carefully in order to allow streaming optimization and that means that data encoded needs to be done a certain way to allow quicker caching (smaller data chunks) so you can start watching a movie right away.

Google for "Real Time Streaming" or "How does Streaming Video Work?" and you will find out that just an "encoder" and a "streaming server" are needed. The content just needs to be run through the encoder once...indeed a very simple and "cheap" process. No physical disc, no artwork, no package, no promotion, no advertising, etc., as with Blu-Ray.

fafner

Online streaming video service Hulu has added episodes from three Viz Media anime series, including the first 32 episodes of Viz’s popular “Inuyasha.”

“We’re very excited to launch ‘Inuyasha,’ which has been a well loved series for many years, on Hulu,” said Ken Sasaki, VP of strategy and business development for Viz. “The availability of these episodes will undoubtedly help continue to grow the online audience for ‘Inuyasha.’”

The first 11 episodes of “Nana” and the first dozen episodes of “Honey & Clover” are also now available at Hulu.com.

http://www.homemediamagazine.com/hulu/hulu-adds-anime-viz-16446

Roku, whose set-top boxes let Amazon.com and Netflix customers play digitally-delivered movie and TV titles on their TV sets, will add a channel dedicated to Mediafly podcasts, giving users access to more than 25,000 free audio and video podcasts.

Roku will unveil the Mediafly channel this fall, closely held Mediafly said in a blog posting earlier this week. The podcasts will include content from NBC, ABC and Fox as well as independent producers.

The agreement gives closely held Roku, which has distribution agreements with Amazon.com and Netflix, access to podcasts that Chicago-based Mediafly already provides to mobile users through such devices as Apple’s iPhone and Research in Motion’s BlackBerry.

http://www.videobusiness.com/article/CA6672686.html

The content providers these days seem to be putting more and more pressure on hardware companies to stop them from being able to stream internet video content to your TV. I think this is truely bogus and falls along the same lines as the Telecom companies a few years back trying to stop VOIP. Long term it just wont hold up.

I got sick of it and have been trying to find a convienent way to stream my PC content to my 50" Plasma. I ran across a new product from a company called Warpia. They call it a "Wireless USB Display Adapter Kit". It works really well and streams up to 720P HD content. They claim a wireless stream to your TV up to 30ft away. I have a PC ~20ft from my PC and it works well. They sell off of their website and they also sell on Amazon as well.

I reccomend it to anyone who is a sick as I am at the big corporate conglomorates trying to stop internet video content from being streamed to the PC.

Xbox 360 officially the only console to stream Netflix -- sorry, PS3 and Wii (http://www.engadget.com/2009/08/11/xbox-officially-the-only-console-able-to-stream-netflix-sorry/)

We actually had to brush the fog off of our spectacles to ensure that hazy conditions weren't clouding our comprehension abilities, but sure enough, that Netflix streaming that Xbox LIVE members have grown to love won't ever land on Sony's PlayStation 3 nor on Nintendo's Wii (PlayOn notwithstanding). At the very bottom of Microsoft's long list of details surrounding today's Xbox LIVE update, we're clearly told that the Netflix Watch Instantly integration is now an "exclusive partnership," with Microsoft going so far as to say that the "Xbox 360 will be the only game console to offer this movie-watching experience, available to Xbox LIVE Gold members who are also Netflix unlimited plan subscribers." Of course, we'd heard rumors over the years that Netflix could sashay over to other consoles in due time, but it looks like the suits in Redmond had the foresight to lock things down while they still had a chance. So, are you reconsidering that Xbox 360 purchase, or just looking that much more intently in Roku's direction? Full blurb is after the break.

Netflix Partnership

This exclusive partnership offers you the ability to instantly stream movies and TV episodes from Netflix to the television via Xbox 360. Xbox 360 will be the only game console to offer this movie-watching experience, available to Xbox LIVE Gold members who are also Netflix unlimited plan subscribers**, at no additional cost.

From the Netflix Web site, simply add movies and TV episodes to your instant Queue, which will appear automatically on the TV screen via Xbox 360. Once selected, movies will begin playing in as little as 30 seconds. In addition to instantly streaming Netflix movies to the TV, Xbox LIVE Gold members can browse and rate movies, fast-forward, pause and rewind, all using either their Xbox 360 Controller or Universal remote.

Zune HD TV Interface Walkthrough (http://gizmodo.com/5337532/zune-hd-tv-interface-makes-it-a-media-center-for-your-pocket)

You've already seen the player hands-on; the final reveal for the Zune HD was how well it handled when docked on a high-def TV. As you can see in this video, it blows away anything else in its class.

I was trying to figure out what it was about the Zune HD's TV interface that I was enjoying so much, and then I realized: Unlike every other device of its size and capacity, this thing is a true portable media center. It's not as fast as a fully fledged PC running Windows Media Center, but it is zippy as hell for a pocketable, portable player.

Zune HD goes dark when it's docked, like you see in the gallery. This isn't like an iPod—once docked, it's invisible, the power behind what you watch or listen to. The remote is the key. I bopped around, browsing music, scanning for radio stations (that HD has a few meanings, including an HD radio receiver, so you can see the "what's playing" data and everything) and even watching a short full-screen video on this 60-inch Samsung. The demo Zune only had the one video—I can't wait to see what it's like to fill a 32GB one with great movies and TV episodes.

The only noticeable thing missing from the interface was any online connectivity—you can't download movies to a Zune without a PC anyway, but docked, I am not even sure you can stream music (as you can when carrying a Zune in a Wi-Fi environment). More on that when we review it, naturally.

As we showed you months ago, the player itself takes the PMP user interface to a new level. When you select something, all the screen elements move at different vectors, creating at times a 3D effect, as you can catch up close in the video below. (Pardon the glare, but that's one hazard—for better or worse, it's a shiny shiny screen.)

I don't want to say more—this is not a review, and I won't be the reviewer when we do pass judgment—but let me say that, as someone who's never been terribly excited by past Zunes, this one took me pleasantly by surprise:cool:

Amazon, iTunes price downloads aggressively (http://www.videobusiness.com/article/CA6685334.html?nid=4756&source=link&rid=5460522)

Just as DVD retailers get more aggressive in cutting prices on discs, Apple iTunes and Amazon Video On Demand are getting fierce in promoting and slashing prices on digital movie and TV downloads.

Both sites have begun running near regular promotions selling catalog films for less than $5 and renting back-catalog movies for as little as 99¢, well below digital competitors.

Amazon, meanwhile, is now pricing new releases on par with iTunes at $14.99, below the site’s previous new releases tag of $17 and often below the price the site sells those same movies for on DVD and Blu-ray Disc.

The two sites also are quickly dropping prices on select new releases: The Curious Case of Benjamin Button, released in May, is selling for $9.99 on both sites, lower than the $14.99 price tag for other new releases that debuted around the same time. Amazon is selling the single-DVD version of Benjamin Button for $14.99 and the Blu-ray for $24.49.

Amazon also has slashed the price of digital downloads of Slumdog Millionaire to $12.49 to $13.49 and Knowing to $13.99 to $14.49, lower even than the $14.99 iTunes price for those titles.

Neither Amazon nor Apple representatives commented on the price drops.

An executive at an independent studio said digital companies are engaged in a land-grab and trying to reach customers any way they can.

Other competitors—CinemaNow, Blockbuster, Vudu, etc.—haven’t been as aggressive, running fewer promotions and mostly pricing new releases above $17 and sticking to the typical $9.99 price tag on catalog downloads and $2.99 rental price for older films that has been the de facto industry standard across movie download sites and among VOD operators.

Blockbuster offers some catalog film downloads for $9.99 and new release downloads for $17.99. Vudu sells new release downloads for $14.99 to $19.99.

Amazon has been aggressively competing with iTunes in the digital music space, slashing prices of albums and singles in its MP3 store to try to grab market share from iTunes, FutureSource analyst David Sidebottom said.

“I wouldn’t be surprised if they did the same on the video side,” he said. However, Sidebottom doesn’t think Amazon will be as aggressive in video as the site has been in music because studio deals might limit discounting to some extent and because video tends to be higher priced than music.

Amazon and iTunes have been particularly aggressive with catalog title promotions. ITunes is now offering a “Back to School” promotion, with movies School of Rock, Clueless, Good Will Hunting and others available as a download for $4.99.

ITunes has a continual promotion running with a category of “Films under $5 and $6,” including such catalog films as Rosemary’s Baby ($5.99), Meet Bill ($4.99) and Made ($3.99).

Amazon VOD has its own category of “Movies for $5.99,” which includes Terminator 2: Judgment Day ($4.99) and Troy ($5.49).

But some of the best deals are on TV series, an area in which both sites also face online competition from ad-supported video sites Hulu, TV.com and others. Amazon is selling full-season downloads for as little as $5, the price for NBC hit series 30 Rock: Season 1.

ITunes is selling episodes of NBC shows for 99¢ in one promotion (below the usual $1.99) and “Starter Packs” of Fox shows, with the first five episodes of a show for $4.99.

Studios join to offer DVD downloads (http://www.variety.com/article/VR1118007730.html?categoryid=13&cs=1)

Paramount, Sony, Warners, Lionsgate join with Film Fresh

Starting today, Paramount Pictures, Sony Pictures, Warners and Lionsgate will begin offering the first movie downloads that can be burned to disc using virtually any DVD or Blu-ray disc burner for playback on a broad range of devices already in millions of consumer homes.

These studios will offer the downloads through under-the-radar online movie service Film Fresh, which inked the first U.S. movie delivery deal with Divx, maker of a popular video format supported by millions of DVD players, Blu-ray players, TVs, mobile phones, the PlayStation 3 and other devices from the biggest consumer electronics brands including LG, Samsung and Sony. Divx-format downloads can be burned to DVD or Blu-ray disc or transferred to USB drives from any Mac or PC with Divx software for playback in any Divx-certified device.

Film Fresh's ability to offer the first downloads that can be legally burned to disc using standard disc burners could give it an edge over larger competitors in the movie download space. Film Fresh CEO Rick Bolton thinks the Divx ecosystem will allow it to take on Apple, the leader in the movie download arena thanks to the iPod.

Digital download sales are growing fast, but business has been held back some by consumers' limited ability to burn films to disc or easily move them between devices for playback. Currently, Roxio CinemaNow is the only other digital movie company offering major studio movie downloads burnable to disc, but consumers are limited to using a Pioneer or Dell Qflix DVD drive to do so.

Film Fresh will offer all new release films, including tentpoles such as "Harry Potter and the Half-Blood Prince," and a selection of catalog films from its studio partners and a number of independent and international companies, Bolton said. Film Fresh is selling only download-to-own movies and DVDs for now. It does not offer rental downloads.

Bolton said the company would price newer films between $10 and $13. The site is aggressively pricing recent-release films to be competitive with both iTunes and Amazon.com, the two low-price leaders on digital films. Divx and Film Fresh will each run promotional campaigns around the relaunch of the Film Fresh site today.

Bolton, a former exec at Razorfish and Disney Online, founded Film Fresh using his own money in 2005. The site has sold independent and foreign downloads and DVDs since then. Bolton more recently brought in former Sony exec Mike Arrieta as his business partner.

"We're doing a fair amount of handholding on the site because a lot of people probably do have Divx-enabled devices and don't know it," Bolton said.

The studios have been slow to offer DVD burning of movie downloads because of copy protection concerns. Divx has its own built-in copy protection so that films can be played back only on certified Divx devices that a consumer registers for his downloads.

http://blogs.zdnet.com/BTL/?p=23064

For the first time ever, movie titles from Lionsgate, Paramount, Sony and Warner Bros. will be available for download online in the DivX format.

DivX, Inc. and movie site Film Fresh on Wednesday announced that Film Fresh will offer titles such as The Da Vinci Code; Spider-Man; Reservoir Dogs; Crouching Tiger, Hidden Dragon; Religulous and the Harry Potter franchise in the “download-to-own” DivX format, beginning today.

The move marks the first time the major Hollywood studios are linking up with DivX to offer their films, which can be viewed on DivX-certified digital TVs, Blu-ray players, Sony’s PlayStation 3, and phones from LG, Philips and Toshiba, among others.

But will it put Apple’s iTunes on high alert?

ZDNet sat down with DivX content services director John Greene, DivX technical architect Eric Grab and Film Fresh CEO Rick Bolton to discuss the move toward media-less movies.

ZDNet: What’s the significance of “download to own” media?

Eric Grab: Now you can download a movie from the Internet and move it to a television or a phone or a USB drive.

When you see that logo on a DivX device, it’s going to play those movies. They’re download-to-own experiences. It’s about $10 to $15 for a download, and it’s yours to keep. You can copy it to a USB drive, and walk it over to a TV. You can burn it to a disc, and you can play it in your car if you want to…you know, if you’re a passenger. We don’t want drivers watching movies!

The file is protected and self-contained. If the file gets damaged, you can go online and download it again.

ZDNet: Why Film Fresh?

Rick Bolton: Film Fresh has been around for about four years now, and when we started, we began offering independent films and global films in DivX format. Now that the [major] studios have gotten more interested in the electronic sell-through format…we’ll probably have about 1,000 films available in DivX format.

It’s exciting to be the first DivX store in the U.S.

ZDNet: How will you convince American consumers to drop the DVD? Even Blu-ray hasn’t shaken their habits.

RB: DivX tech enables a wider group of people to participate in downloading entertainment. There just hasn’t been a content service for those people.

EG: It’s about one gigabyte or more for a nice movie. The download process doesn’t necessarily have to be real time — if you have a good connection, you can download it in 15 minutes. If you don’t, you can do it over a longer period of time.

ZDNet: How are you going to bring legally downloadable movies to parts of the U.S. that isn’t served by high-speed Internet?

RB: It’s still an interesting moment from an infrastructure perspective. The studios have decided to put a bet on the infrastructure. They believe there’s enough bandwidth in the U.S. to do this. And we’re hoping that President Obama addresses this. It’s particularly important for rural people.

EG: Our base is very large. From a footprint standpoint, 12 million people come to our site each month, worldwide. There have been 1 billion hits to our player throughout the year.

You’re getting more for your money. We’re offering a better value. There’s going to be grassroots support of this. A key market is the enthusiast market.

ZDNet: Don’t people like holding physical media, though? Despite the success of the MP3, full-length movies haven’t really taken off online.

RB: I think we are at the tipping point right now. We’ve seen a little more dramatic consumer adoption of our own service, but now we’re seeing studios being more willing to make deals with us. People are adopting download-to-own. Part of this is because of iTunes and the ground Apple broke. Studios are throwing their weight behind the effort.

EG: It’s downloading for everybody, on every device. It’s really about the three screens: computer, TV, phone.

ZDNet: That last one is particularly important as more smartphones and portable media players support high-quality video.

RB: We’re very interested in mobile, and the next-generation of DivX-enabled phones will be pretty significant for us. Right now we’re completely focused on the market advantage that DivX can be moved around.

EG: It’s a technical challenge and a legal challenge. You can download a movie at the same time as the DVD release.

RB: The rate of DVD sales is going down and the rate of digital sales is going up.

What’s exciting for us is that no one’s quite sure what consumers want to do, even consumers. That’s exciting. We’re making a bet that consumers are going to want to download movies in DivX format and that be a substantial part of entertainment, period.

It’s dramatic. It’s exciting.

Comcast: 80% DOCSIS 3.0 Coverage By Year's End (http://www.dslreports.com/shownews/Comcast-80-DOCSIS-30-Coverage-By-Years-End-103824)

As we've noted countless times, Comcast had promised to have 65% of their network upgraded to DOCSIS 3.0 technology by the end of this year, and 100% of their network upgraded by the end of 2010. In addition to doubling the speeds on existing tiers, the upgrades deliver new $62.95 22Mbps/5Mbps and $99 "Extreme 50" 50Mbps/10Mbps tiers, both of which require a new DOCSIS 3.0 modem. Comcast now tells us that the deployment is going so well, they should be able to accomplish considerably more installs than originally predicted.

"We have raised our goal to roll out DOCSIS 3.0 to nearly 80% of our national footprint before the end of this year," Comcast spokesman Charlie Douglas tells us. "That would mean passing about 40 million homes and businesses with the new wideband offerings Extreme 50 and Ultra 22, in addition to doubling speeds for existing Premier customers for no additional cost," he notes.

Comcast already provides the service to the Twin Cities, the Boston Metropolitan region and parts of Southern New Hampshire, parts of Hartford, the City of Philadelphia as well as the greater metropolitan area, Harrisburg, Pittsburgh, parts of New Jersey, Atlanta, Baltimore, Chicago, Ft. Wayne, Chattanooga, Portland, Eugene, Seattle and Spokane. The next market should be announced within weeks, Comcast tells us.

"I think part of raising the estimate is just we are getting it implemented and we are a little further along the line and continue to be big believers in it," Comcast COO Stephen Burke said this morning on a conference call with analysts. "I think everybody in the industry eventually is going to put DOCSIS 3.0 pretty much everywhere and it is just a question of how fast you go."

Parks Associates: Network-Connected TVs To Triple In 2010 (http://www.homemediamagazine.com/electronic-delivery/parks-associates-network-connected-tvs-triple-2010-16875)

The number of Internet-connected TVs used as networked devices in American homes will nearly triple in 2010, from 2.4 million in 2009 to more than 7 million, according to research presented Aug. 27 by Parks Associates. Consumers will use those connected TVs to access VOD, rent movies and access content on their home PCs.

However, next-generation gaming systems such as the PlayStation 3 and Xbox 360 will remain the No. 1 Internet-connected networked devices in households with 27.6 million. “Cloud” media devices — devices such as Vudu that bring content from off-site servers — will number 10.5 million in 2010, while connected Blu-ray Disc players used as networked devices will weigh in at only 1.1 million. A majority of owners using Blu-ray players as network devices do so to access VOD content, such as Netflix via LG Blu-ray players or Blockbuster via Samsung Blu-ray players.

Still, while most people will use these devices to connect to shared files from PCs and view online videos, widespread acceptance of networked consumer electronics will take time, as content owners still mull copy protection and consumers learn what their broadband connections can handle, the firm said.

“The online video services are not compelling enough to convince consumers to cancel their pay TV services,” said Kurt Scherf, VP and principal analyst for Parks Associates. “There hasn’t been a compelling reason to connect more devices to home networks.”

He added that premium Web video from companies such as CinemaNow, Netflix, Blockbuster and Amazon VOD is “significantly” on the rise, as those companies allow their content to be distributed on more devices.

“One of the challenges facing online video efforts … is windowing,” Scherf said. “It still gives the edge to traditional media.”

TV facing 'iTunes moment' warns Microsoft's Ashley Highfield (http://www.guardian.co.uk/media/2009/aug/29/ashley-highfield-edinburgh-tv-festival)

Television industry must act soon or face losing control of its online presence to brand such as Apple, says Highfield

The TV industry has as little as two years to create viable digital businesses or face a version of the "iTunes moment" that saw the music business cede the online future to Apple, according to Ashley Highfield.

Highfield, the the managing director of consumer and online at Microsoft UK, said he believed the reluctance advertisers feel to advertise on sites such as Facebook will soon be a "non-issue", putting more pressure on broadcasters' advertising revenues.

"Once this happens the shift of spending from TV to web will accelerate even more," he said, giving the Futureview address at the MediaGuardian Edinburgh International Television Festival today.

"So realistically I think the industry has about two to three years to adapt or face its iTunes moment. And it will take at least that long for media brands to build credible, truly digital brands. But, importantly, I do believe TV does have a small two to three year window in which to respond."

Highfield also said he believed that despite the growing popularity of online TV viewing it will be at least three years until it reaches a scale to win over media agency advertising buyers and generate significant revenues.

"The traditional television business has to aggressively move its content online, build a critical mass of content that the traditional buyers of airtime will understand and buy into," he added. "They want to see TV-like reach and impact".

Highfield argued that there are still barriers preventing online TV from generating revenue. "On current projections, we are three years away from the reach and the volume of online video being un-ignorably attractive to TV advertising buyers," he said. "We are two to three years away from having the ad sales systems and Barb-like measurement systems to enable really easy purchase across TV and web."

To drive revenues from web video, media companies need to embrace controversial targeted advertising techniques, such as behavioural targeting based on users' web viewing habits, with the ad inventory going into an auction-style model similar to the system Google operates, according to Highfield.

He also suggested a possible solution to the thorny issue of getting broadband into rural areas in the UK after Lord Carter's plan of a £6-a-year tax on landlines to raise the funds fell out of favour with new business minister Stephen Timms.

Highfield said a solution, which in the US market has been called the "white space initiative", would be to use the leftover unused transmission spectrum between, for instance, BBC1 and BBC2 to provide broadband capacity to rural communities.

LG HDTVs Offer Vudu HD (http://www.homemediamagazine.com/hdtv/lg-hdtvs-offer-vudu-hd-16898)

LG Electronics broadband-connected HDTV owners now have access to Vudu HD content, with a limited time offer to get their first high-def rental from the content service for free.

The LG LH50 LCD and PS80 plasma series with NetCast Entertainment Access, currently available at retail, will automatically have the Vudu Service option, while LG broadband-connected HDTV owners prior to Sept. 1 can access the content via a software update.

“For the first time, customers can get Vudu’s revolutionary video service directly through their HDTVs without the need for a separate device,” said Vudu CEO Alain Rossmann. “We offer users the combination of an unmatched HD catalog, superior A/V quality and a compelling user interface. There has never been a better way to find and watch HD movies in your living room.”

TV facing 'iTunes moment' warns Microsoft's Ashley Highfield (http://www.guardian.co.uk/media/2009/aug/29/ashley-highfield-edinburgh-tv-festival)

Is the guy talking about the UK market or US?

Digital media company DivX has acquired AnySource Media, creator of the Internet Video Navigation platform for connected TVs, in a deal worth as much as $15 million.

AnySource’s software allows for rapid Internet navigation and VOD playback on HDTVs, Blu-ray Disc players and mobile phones.

“Internet TV will transform the landscape for media distribution and advertising as we know it,” said DivX CEO Kevin Hell. “The AnySource streaming platform combined with our high-quality device certification program and our deep relationships with both consumer electronics companies and Hollywood studios puts us in an enviable position in this rapidly emerging market.”

The acquisition is another recent profile-raising move by DivX, which had four studios agree in late August to make their films available to download-to-own and burn on any device that is DivX compatible, via online movie site Film Fresh.

http://www.homemediamagazine.com/electronic-delivery/divx-acquires-internet-tv-software-company-16916

Is the guy talking about the UK market or US?He is based in the UK, but I believe he is talking about both.

Wall St. Journal

YouTube in Talks to Stream Rental Movies (http://online.wsj.com/article/SB125192241524880801.html)

Google Inc.'s YouTube is in discussions with major movie studios about allowing users to stream movies on a rental basis, according to people familiar with the company's plans, marking one of the video giant's first moves towards charging for content instead of making it available for free with advertising.

While some studios already make full-length movies available on YouTube, they tend to be older, lesser-known titles. Now YouTube is talking to Lions Gate Entertainment Corp., Sony Corp. and Warner Bros. about integrating newer titles into the existing YouTube site, most of which it would carry a rental charge. In some cases, these titles might be available on the site on the same day that they come out on DVD. It is unclear to what extent older movies or television shows will be part of the new agreements.

In a statement, a YouTube spokesman said the company is always working to expand on "its great relationships with movie studios and on the selection and types of videos we offer our community."

While details vary from studio to studio, generally speaking the agreements would allow consumers to stream movies on a rental basis for a fee. However, in some cases, the movies would be available in way that they have been previously—free, with advertising.

Negotiations are continuing and there are no guarantees a deal will be struck. Many details remain in flux, including whether users will also eventually be able to download movies. People familiar with the matter say that new movie rentals are likely to be around $3.99, the price Apple Inc.'s iTunes charges for new movie rentals. The companies hope to keep pricing on par with what consumers pay for video-on-demand for new titles, these people say.

YouTube generally gives studios about 70% of revenue for ad-supported content they already offer on the site, people familiar with the matter say. They would likely get a similar percentage for new movies. But they would also likely be guaranteed a minimum fee of just under $3 per title viewed. That ensures the studio the dollar amount, even if YouTube decides to run a special where they charge consumers less.

Under current plans, 10,000 Google employees will test the service for a period of three months, these people said. The trial was supposed to start at the beginning of September, but was pushed back as studio negotiations dragged on.

Both YouTube and the movie studios are being forced to become more flexible in their business models. YouTube, which isn't yet profitable, is looking for new ways to draw premium content and ad campaigns from big brands.

Studios, on the other hand, are also eager to bolster any area that might help compensate for declining DVD sales. Adams Media Research says studio revenue from DVD sales should fall by about $850 million this year to $12.9 billion.

If the YouTube deals come to fruition, the site would join Apple, Amazon.com Inc. and Netflix Inc. in offering services that allow users to stream or download newer movies online. Sony's Crackle and Hulu LLC allow users to watch full-length movies for free, but don't generally include new releases.

Blockbuster is bundling a download server into all their kiosks.

Blockbuster Earnings Report Transcript (http://seekingalpha.com/article/156034-blockbuster-q2-2009-earnings-call-transcript?page=-1)

Third, we are more proactively developing the vending channel through our alliance with NCR. We will have approximately 500 machines in the market by the end of August and NCR is rolling out about 50 machines per week, well on their way to deploying more than 2,500 Blockbuster branded kiosks by year-end and another 7,000 planned by August of 2010.

Vending provided a new level of convenience that could expand the market presence for Blockbuster customers. We selected NCR as the vending partner not only for their expertise as the world’s leading manufacturer of self-service devices but also because we intended to future-proof the vending channel by incorporating a server into each device to allow for digital download capabilities.

Analyst for Emily Shanks - Barclays Capital

I understand. That’s great color. Appreciate it -- with regard to the kiosks, as far as digital download goes, is that something available currently or what’s the timeline on rolling that out for the kiosks?

James W. Keyes

As you know, we are testing digital download capabilities in a few stores today. We are very early. We are way ahead of both the consumer and the studios on this. The good news is that the technology is perfectly available today. It works. You can actually download a movie, a TV show to a thumb drive, to an SD card. And if you have that movie captured in a server on site, you can download that movie in a matter of minutes versus the hour or two hours it could take, depending on the bandwidth, to download that movie at home. So there’s a real advantage in digital downloads that we believe is part of the future.

The reason for our selection as I referenced with NCR is that when we deploy kiosks, the good news is we don’t have 18,000 kiosks in the market today so we can actually with NCR deploy kiosks with the server capability to house those movies on site and to be able to build in the download capability to load a thumb drive or an SD card. Now the only remaining obstacle, the technology as I referenced, works fine. The remaining obstacle is getting the studios to all agree on the consistent standards necessary for security and protection of their intellectual property. That process is underway. There are a couple of studio groups today. It’s very similar, if you will, to the challenge that we had with HD versus Blu-Ray and the studios having to agree on a format, a consistent set of standards in a format. Naturally it’s going to take some time for them to do that. We think that could take as much as a year, perhaps two years. But our hope is that the deployment of our vending machines will be built with an eye to that digital download capability so that as we deploy our own infrastructure, they will have their own, as I referenced, almost a future proof capability. They won’t just be vending machines for DVDs -- they will also be servers able to download content direct from Blockbuster on demand capabilities.

Online video platform Brightcove Inc. has inked a deal with Boxee, maker of a social media center that streams Internet video through the AppleTV and computers.

The deal will bring videos from Brightcove and its video partners, Conde Nast Digital, Quvo and others, to the living room through the Boxee platform.

Brightcove customers can set up their own branded channel within Boxee. Featured content can be integrated into Boxee’s content catalog, which already includes films, TV shows and videos from Netflix, CNN and CBS.

http://www.videobusiness.com/article/CA6694860.html

Netgear has rolled out an Internet-connected set-top box designed to play video from YouTube, Hulu, Netflix, CBS.com, CinemaNow and other services directly on a big-screen TV.

The company's Digital Entertainer Live EVA2000, with a list price of $150, also provides menus to let users access personal movies, music and photos stored on a USB hard drive. The EVA2000 includes HDMI and composite cable interfaces, as well as RCA jacks for connecting to older analog TVs. The box includes an Ethernet port; Negear is selling a wireless USB adapter separately for $39.99.

http://www.multichannel.com/article/339735-Netgear_Goes_Over_The_Top_With_Internet_TV_Box.php

Hulu.com has begun adding links to Amazon VOD for its users that want to buy digital downloads of shows they watch on the site, NewTeeVee reports. Hulu has links under videos saying "Buy this season today" that take users directly to Amazon to buy the same show as a download.

It seems that more and more ad-supported TV sites are linking to digital sales sites or DVD sales sites. Warner, in its recent partnering with YouTube, flat out said the goal is to drive sales of its shows on other formats.

http://www.videobusiness.com/blog/1730000173/post/990048699.html

Tesco and Microsoft Bring Next-Generation Movie Experience to U.K. Consumers
(http://thedigitallifestyle.com/cs/blogs/ian/archive/2009/09/09/tesco-and-microsoft-bring-next-generation-movie-experience-to-u-k-consumers.aspx)
New virtual DVD provides ability to download entertainment including movies with rich video quality, interactivity and bonus content previously available only on a disk.

LONDON — Sept. 9, 2009 — Tesco, one of the world’s leading retailers, and Microsoft Corp., worldwide leader in software, today announced a collaboration to launch the next generation of home video viewing. The new service, built on Microsoft Silverlight technology, will deliver a similar level of quality as consumers have come to expect from DVD and Blu-ray, but with advanced Web-based interactivity and a viewing experience that goes beyond other digital playback products in the marketplace.

Starting in the autumn, Tesco will allow customers in the U.K. who purchase certain home video titles from Tesco to download “digital copy” versions of movies to their Windows-based or Apple Macintosh computers in a “virtual DVD” experience. The digital copy versions will include a similar level of video quality, interactivity and bonus content available on the physical products. In addition, the digital copy versions will provide consumers with extra network-connected features such as auto-updated trailers, exclusive bonus content, movie viewing parties with online chat, related music offerings such as MP3s and ring tones, and networked games.

“Tesco is excited to be the first retailer to partner with a broad range of major movie studios to offer this next-generation movie experience,” said Rob Salter, category director for Entertainment at Tesco. “For the first time, consumers will be able to enjoy a DVD equivalent experience with digital movies, which paves the way for more advanced viewing experiences enabled through Silverlight.

“This is just the beginning. In the future we expect to offer our customers innovative digital solutions that far exceed the DVD experience and deliver exclusive content, Web events and services wherever and whenever they want them,” Salter said.

The underlying technology that enables these experiences is the Microsoft Silverlight browser plug-in, which powers rich, interactive experiences on Windows-based PCs and Apple Macintosh computers across all popular Web browsers. Silverlight provides a powerful engine for premium media experiences and sophisticated network-connected applications. It also enables developers and designers to build and deliver the same application anywhere Silverlight is running.

“Microsoft is committed to enhancing digital entertainment to deliver richer quality video and, ultimately, more enjoyable and interactive experiences for the viewer through technologies like Microsoft Silverlight,” said Gabriele Di Piazza, senior director for the Media & Entertainment business in the Communications Sector at Microsoft. “We believe this alliance will offer consumers in the U.K., and eventually additional markets, the opportunity to download a digital copy that is truly the equivalent of a physical disk — with the same package of navigation, bonus features and director commentaries.”

LG Electronics and Sony Electronics made the first home entertainment splashes at the annual Custom Electronic Design & Installation Association (CEDIA) Expo, opening the show Sept. 9, introducing new Blu-ray Disc players and HDTVs.

Sony Electronics introduced its BDP-N460, a networked, wireless Blu-ray Disc player that will retail for $250 in October, and will include both free and premium on-demand content, from services such as Netflix, YouTube, Slacker and more.

Chris Fawcett, VP of home audio and video for Sony Electronics, said that despite the economic downturn, consumers are still spending money on home entertainment.

“Holiday 2009 is starting to look very promising,” he said.

Meanwhile, LG Electronics announced it is expanding its partnership with high-definition streaming movie service Vudu to its wireless network Blu-ray Disc player, the BD390 ($399). At the end of September, owners of the player will be able to upgrade for access to Vudu for free. LG’s “NetCast Entertainment Access” set of features also includes Netflix, Roxio CinemaNow and YouTube.

Tim Alessi, director of new product development for LG Electronics’ home entertainment division, said consumers could expect more LG products to include NetCast features in the future. He specifically highlighted the 2,200-plus high-def movies that Vudu offers.

“That’s more high-def movies than are currently available on physical disc for Blu-ray,” he said. “Our intention, as the market continues to grow, is to release more products with connectivity.”

Alain Rossmann, CEO of Vudu, added, “Following the recent launch of Vudu on LG HDTVs with NetCast Entertainment Access, LG’s BD390 Network Blu-ray player provides the perfect opportunity for anyone in the market for a Blu-ray player to enjoy VUDU’s extensive HD movie library in superior 1080p video quality and Dolby Digital Plus 5.1 surround sound.”

LG also unveiled a new network attached storage model (N2R1) for consumers to back up their multimedia entertainment files. Available with 1TB ($299) or 2TB ($399) of storage, the wireless N2R1 automatically backs up and restores files in the event of a hardware failure.

“Consumers continue to create digital memories, from photos to family videos, and it’s important that these irreplaceable moments are saved in a secure place,” said Peter Reiner, SVP of marketing for LG Electronics. “With LG’s network attached storage, consumers now have a virtual library on command that allows them unlimited access to their favorite memories, whether at home or on the road.”

http://www.homemediamagazine.com/blu-ray-disc/blu-ray-players-get-connected-cedia-16989

Apple rivals DVD with new iTunes Extras for movies and albums (http://www.appleinsider.com/articles/09/09/09/apple_rivals_dvd_with_new_itunes_extras_for_movies_and_album s.html)

The new iTunes 9 offers special "iTunes Extras" as free downloads with the purchase of "iTunes LP" albums or movies. The new free bonus content is delivered as a self-contained website of bonus materials, making it easy to author.

Apple's new move into bonus materials helps to enrich its media downloads, making iTunes digital albums more attractive to purchase as a complete set and positioning its movies better against the bonus features available on DVDs. Apple has offered simple PDF digital booklets with certain albums in the past, a step the new Extras builds upon. The DVD Forum has attempted to deliver DVD-A its own specification for value-added music albums, and Blu-Ray has similarly floated an audio version of the format, but along with SA-CD and other attempts to improve upon the CD, these efforts have all fizzled.

Previously referred to under the Cocktail codename, Apple's new initiative delivers a single .ite file along with standard purchased album tracks or the movie file. The iTunes Extra file is actually a bundle, which is directory of files masquerading as a single file. Inside the bundle are navigation pages built using web-standards including HTML pages, Javascript code and CSS presentation, along with content folders containing regular PNG graphics, AAC audio and H.264 video files. The package is essentially a self-contained website, although its FairPlay content requires iTunes 9 to view.

The ease of building this Extras content should help popularize the new bonus materials, and a quick review of the iTunes Store shows a variety of artists' albums and movie titles sporting the new bonus materials. Unlike earlier attempts to create a super CD format, iTunes doesn't require anything more than a software update to the free version 9 in order to play the new Extras content.

http://images.appleinsider.com/ITE.png


The newly unveiled Cocktail initiative may help explain why Apple hasn't thrown much effort behind developing its DVD authoring tools recently, and why it has pointedly ignored the Blu-Ray authoring market. DVD authoring requires participating in a licensing program that includes a book of authoring specifications.

Apple Shuns DVD and Blu-Ray Authoring

Apple entered the DVD authoring business when it bought Astarte in 2000, resulting in DVD Studio Pro and the consumer-oriented iDVD title. It then bought Spruce Technologies and released that company's authoring tools as DVD Studio Pro 2.0. Since the 4.x release in early 2006, Apple has done little to update the program, which still ships as part of Final Cut Studio. The iDVD portion of iLife has similarly only received the barest of attention over the last few years.

While Apple updated its DVD authoring tools to support changes required to create HD-DVD discs, it never threw its support being the format, which has since collapsed after a protracted battle against the rival Blu-Ray specification. Similarly, despite being a member of the Blu-Ray Disk Association, Apple hasn't released authoring tools for that format either. Apple recently added raw Blu-Ray disc burning support to Final Cut Studio, but this lacks any capacity to actually author navigation; the resulting Blu-Ray disc just contains plain video. This is commonly used to distribute edited work for review. Third party tools are required to author a fancy user interface for finished Blu-Ray discs targeted at consumers.

The Blu-Ray specification uses navigation and content presentation tools based upon Sun's Java, called BD-J, to both frame the video and any interactive bonus content on the disc. It is also designed to enable accessing the Internet to find additional content published after the disc was shipped. Different Blu-ray players support different minimal versions of the BD-J, and the BD-J runtime results in significant hardware requirements (similar to a low end PC) which have priced Blu-Ray players out of the mainstream of the market.

Apple's Competitive Cocktail

By offering easy to create, standards-based bonus content that does not require complex and convoluted authoring tools, Apple appears to be hoping to convert more users from DVD disc buyers to iTunes download customers. While downloaded videos can't match the quality of Blu-Ray movies, the mass market has still not embraced the Blu-ray format, leaving Apple with a large market to address.

Presenting iTunes Extras on Apple TV, and potentially on mobile devices such as the iPhone and iPod touch, may also follow as Apple builds out its efforts to popularize albums and movies with the bonus materials.

For both movies and albums, iTunes Extras also differentiate Apple's own offerings in iTunes from identical content sold by other content distributors, such as Amazon.

Variety

The video-on-demand business, which barely registered as a revenue stream three years ago, has almost overnight changed the indie distribution business.

Viewed as a whole, VOD revenues can be underwhelming and deceiving, expected to near $2 billion across digital services such as iTunes, cable and other outlets this year -- that's just a sliver of the $22.5 billion expected from DVD and Blu-ray, projects Adams Media Research.

Yet for a growing number of indie films, VOD has become a crucial revenue source, accounting for as much as 60% of revs for some movies and returning seven-figure checks for the highest-profile indies.

"VOD does make up for some of the DVD sell-through decline for smaller indie movies," says Oscilloscope's David Fenkel, who sent "Wendy and Lucy" out on VOD in May via the company's deal with Warner Bros. Digital. But he's also quick to note that sell-through for some indie titles was never brisk previously.

One of the breakout stars is Magnolia Pictures' "Two Lovers," which debuted in theaters and on VOD simultaneously. The film is on track to gross well into seven figures, says Magnolia president Eamonn Bowles.

Unlike the theatrical and DVD business, where revenue estimates are touted in a matter of hours after a film's release, VOD sales figures are still guarded like state secrets. Often, even the distrib doesn't know the numbers until several months after releases, when the payments start rolling in.

Debuting a film on VOD can potentially put it in more than 50 million living rooms where viewers can watch not just through Comcast and other cable and satellite outlets, but through iPods and Xbox 360 game consoles.

VOD has become a new source of income for virtually no additional cost. There are no theatrical prints to deliver or discs to press. And it comes with free advertising, thanks to the trailers cable operators run to promo available VOD titles.

VOD providers, eager to lure customers with content they can't get in many other places, heavily promote VOD debuts through TV ads and callouts on the main VOD channel.

"The cable operators run a ton of free promotion and actual TV advertising that we would never be able to afford for films of this scale," Bowles says.

IFC, another indie distrib regularly releasing films in the theatrical window and also on VOD, is seeing the same healthy returns.

"I Hate Valentine's Day" is on track to be the company's top VOD performer, having already generated an estimated $1.5 million in overall revenues, just surpassing biopic "Che," says IFC topper Jonathan Sehring.

Those are the standouts, but even for other films, VOD revenues can be just as significant, though smaller. Gravitas Ventures, which distributes 250 indie pics a year on VOD, tells its partners that high-five and low-six figures is a more realistic expectation if they get picked up by the biggest VOD providers, such as cabler Comcast.

Key to broad VOD distribution, and bigger revenues, is timing the VOD rollout with or before the DVD release.

Films released day and date with DVD tend to sell 50% better on VOD than films released afterward, says David Asch, executive VP of VOD distributor In Demand.

They also generate higher profits because companies can charge more -- Magnolia charges $9.99 and up, IFC $7.99 -- both premiums over the typical $3.99 for VOD films released in the DVD window.

"It's a significant source of revenue. Probably more significant are the economics of it," says Sehring.

http://www.variety.com/article/VR1118008350.html?categoryid=18&cs=1

Move Networks Inc. may finally see some traction as an IPTV technology provider, with the news that Cable and Wireless plc (NYSE: CWP) has chosen its adaptive bit-rate technology to power a global rollout of online video services.

CWI, Cable and Wireless's international telecom business, will use Move Networks technology to deliver online video services in 38 countries worldwide. The deal will enable CWI to offer multichannel video services to customers through their existing ADSL broadband connections without the need for building out local IPTV infrastructure.

The new IPTV service will be offered to more than 7 million customers to whom CWI already provides fixed-line, broadband, and mobile services, and will be available through existing broadband connections. The service will include linear programming, a network digital video recorder (DVR) function, as well as the ability to pause and rewind live and on-demand video streams.

Move Networks will handle the middleware, content management, conditional access, and backend systems for the CWI IPTV rollout. But most importantly, it will provide adaptive bit-rate technology that will enable CWI to provide a high-quality video experience regardless of the local network conditions.

Move's technology works by adapting to changing network conditions, seamlessly increasing or decreasing the bit rate of a video stream to ensure the highest quality experience to the end user. Because different markets that CWI serves will have different levels of broadband connectivity, using Move will allow the company to offer an optimized experience in all countries that it rolls the service out in.

The customer announcement comes nearly six months after Move closed on its acquisition of Inuk Networks Ltd., a virtual set-top box provider based in the U.K. That purchase signaled a shift in the company's strategy, from providing high-quality video distribution to media companies such as ABC Inc. and Fox Broadcasting Co. to selling technology to Internet service providers looking to offer their own online video services.

http://www.contentinople.com/author.asp?section_id=450&doc_id=181554

http://www.pcworld.com/article/171911/apple_tv_40gb_disappears_160gb_model_discounted.html


Apple's move to slash the price of one its Apple TV models and discontinue another lower capacity model have many scratching their heads. Monday morning the 40GB model of the Apple TV disappeared from U.S. retail locations and online. At the same time, the price of the 160GB version was slashed by one hundred dollars to $229 from $329.........

Zune Offers HD, Rentals and Purchases Through Zune Marketplace (http://www.homemediamagazine.com/zune/zune-offers-hd-rentals-and-purchases-through-zune-marketplace-17049)

Microsoft has updated its answer to the iPod, the Zune, with an HD touchscreen media player, an update to the Zune PC software, and the ability to buy or rent movies through the Zune Marketplace online store.

The Zune HD, priced at $219.99 for the black 16GB version, $289.99 for the platinum 32GB version, allows for storage and playback in 720p HD video and can connect to an HDTV using the Zune HD AV dock accessory.

The Zune 4.0 software allows users to rent movies for approximately $6 (480 Microsoft Points) for new-release high-definition movies, $4 (320 Microsoft Points) for new-release standard-definition movies, $4.50 (360 Microsoft Points) for library HD movies and $3 (240 Microsoft Points) for library SD movies. Movie downloads cost $19.99 (1,600 Microsoft Points) for new-release HD titles, $14.99 (1,200 Microsoft Points) for new-release SD titles, $17.99 (1,440 Microsoft Points) for library HD titles and $17.99 (1,440 Microsoft Points) for library HD titles.

TV episodes will cost $2.99 (240 Microsoft Points) for HD and $1.99 (160 Microsoft Points) for SD. Meanwhile, a new streaming music service for $14.99 a month allows users to stream songs and albums from Zune.net.

“With today’s announcement, the Zune business is growing into a comprehensive entertainment service that’s no longer tied to any one screen or device,” said Enrique Rodriguez, corporate VP of the TV, video and music business at Microsoft. “Zune lets consumers connect to their music, TV shows and movie content and enjoy it on the three screens they use every day.”

Zune video also will be available to Xbox Live users later this fall.

Netflix expands digital inventory by about 40% (http://www.videobusiness.com/index.asp?layout=talkbackCommentsFull&talk_back_header_id=6625480&articleid=CA6696754)

SEPT. 14 | DIGITAL: Netflix has finally confirmed what industry observers have been saying all along—that the company has more than 12,000 titles available for video-streaming.

The largest U.S. movie-rental service via mail last week started posting on its Web site that more than 17,000 of its titles can be delivered digitally. Blog HackingNetflix.com reported the update last week.

Netflix, which is set to release third-quarter earnings next month, has been augmenting its DVD-by-mail service by expanding both the number of its digital titles and the number of electronic components that can play them on TVs. About a third of Netflix’s new subscribers are previous customers who had canceled their subscriptions but were lured back largely by the expanded digital offering, Netflix chief financial officer Barry McCarthy said at a conference in New York last week.

Although Netflix has long pegged its digital inventory at about 12,000, HackingNetflix.com said as far back as April that the total was closer to 15,000. The company is able to maintain its profit margins while boosting investment in its streaming service because Netflix’s widening customer base allows sales growth to keep pace with its increasing digital-content investment, McCarthy said.

Netflix in July forecast third-quarter earnings of about $25 million on sales of about $419 million, both representing a 23% increase from year-earlier results.

Genesys to mass produce USB 3.0 controllers in 1Q10 (http://www.digitimes.com/news/a20090917PD215.html)

Genesys Logic is scheduled to start mass production of controller chips for USB 3.0 card readers, thumb drives and SATA2 bridge devices in the first quarter of 2010, according to company spokesperson Chin-Te Wang. The USB controller designer will be mainly outsourcing its USB 3.0 solutions to Taiwan Semiconductor Manufacturing Company (TSMC).

Genesys' next-generation USB controllers will be mass produced on a 0.13-micron process at TSMC, said Wang. The design house uses a 0.18-micron node to manufacture its USB 2.0 controller chips.

Genesys expects revenues generated from the new chips to become solid in 2010, when the USB 3.0 controller market starts taking off, Wang indicated. As for USB 2.0 solutions, the company estimated shipments for card readers used in PCs to grow significantly on quarter in the third quarter. Gross margins for the third and fourth quarter are likely to remain at 35-38%, Wang added.

Genesys saw a 37.71% gross margin in the second quarter, compared to 37.62% in the prior quarter and 34.27% a year ago.

In other news, a recent research by In-Stat suggests that SuperSpeed USB, known as USB 3.0, will see broad adoption across a range of PC and PC peripherals over the next several years.

The technology will be targeted initially at devices requiring high data transfer rates and large data stores such as external hard disk drives (HDDs) and flash drives, and other likely applications including portable media players (PMPs), LCD PC monitors and digital still cameras (DSCs). In-Stat projects SuperSpeed USB will represent over 25% of the USB market by 2013, with initial adoption to emerge in 2010.

USB 'SuperSpeed' 3.0 logos to appear on certified devices (http://blogs.zdnet.com/gadgetreviews/?p=7082)

http://i.zdnet.com/blogs/superspeed-usb-logo.jpg

http://www.tomshardware.com/news/USB-External-RAID-HDD-SSD,8535.html

USB 3.0 is actually designed to handle transfers of up to 5 Gbit/sec, a huge increase in throughput when compared to the 480 Mbit/sec limit seen with USB 2.0. As an example, a 25 GB HD movie would take 13.9 minutes to transport over a USB 2.0 connection, just 70 seconds over a USB 3.0 connection.

I don't know when this went live, but the The Digital Entertainment Content Ecosystem (DECE) has a web site. Nothing on it yet, but I am hoping there will be something of substance sooner rather than later (or never).

http://www.decellc.com/

There’s an exciting new way to buy, access, and play digital entertainment. Developed by DECE, a consortium of some of the world’s top media companies, this system will provide a revolutionary new way to enjoy your favorite movies and TV shows.

In the coming months on this evolving website, we’ll provide an exclusive look at how this new approach works. Come back soon to learn how this groundbreaking technology will dramatically change how we experience digital entertainment.

----------------------------------
DECE founding members include: Alcatel Lucent, Best Buy, Cisco, Comcast Corporation, Deluxe Digital, Fox Entertainment Group, HP, Intel, Lionsgate, Microsoft Corporation, NBC Universal, Panasonic, Paramount Pictures, Royal Philips Electronics, Samsung, Sony Corporation, Toshiba, VeriSign Inc., and Warner Bros. Entertainment.Disney and Apple are noticably absent. :rolleyes:

Remember USB 3.0 from 2 posts back? Looks like USB/Firewire II is breaking out.

Intel's Light Peak: One PC cable to rule them all (http://news.cnet.com/8301-30685_3-10360047-264.html?tag=mncol;txt)

SAN FRANCISCO--Intel unveiled technology called Light Peak that it hopes ultimately will replace the profusion of different cables sprouting from today's PCs with a single type of fiber-optic link.

Dadi Perlmutter, the newly promoted co-general manager of Intel's Architecture Group, demonstrated Light Peak at the Intel Developer Forum here and said components for the technology, though not Light Peak-enabled PCs, will be ready in 2010.

"We hope to see one single cable," Perlmutter said, adding that one thing getting in the way of smaller laptops is the profusion of cable ports around the systems' edges.

This prototype PC has the Light Peak controller and optical connector that sends signals down a single white optical cable.

In a demonstration, Perlmutter showed a PC connected to a monitor across the stage showing high-definition video sent over a Light Peak optical cable. The cable can be as long as 100 meters and can carry data at 10 gigabits per second in both directions simultaneously, though Intel expects it will reach 100 gigabits per second in the next decade, said Jason Ziller, Intel's director of optical input-ouput program office, in an interview.

The company envisions Light Peak as a replacement for the cables that currently lead to monitors, external drives, scanners, and just about anything else that plugs in to a computer. A PC could have a number of Light Peak ports for different devices, or a connection could lead to a hub--perhaps an external monitor--with multiple connections of its own, Ziller said.

It's not clear how much the technology will cost or how many years it will take to become mainstream. And wireless communication technology--Intel itself has promoted Ultra-Wideband (UWB) for years--offers the attraction of getting rid of some cables altogether.

More on Light Peak HERE: (http://news.cnet.com/8301-30685_3-10362246-264.html)

Intel's aspirations and allies

Intel's hope for Light Peak is to create a single connection for video, storage devices, the network, printers, Webcams, and anything else that plugs into a PC. Light Peak uses circuitry that can juggle multiple communication protocols at the same time, and the Light Peak promise is for a universal connector to replace today's incompatible sockets for USB, FireWire, DVI, DisplayPort, and HDMI. It's a hot-plug technology, meaning that devices can be linked when they're up and running.

Intel has pre-production chips and said the technology will be ready to ship in 2010. In its current form, Light Peak can transfer data at 10Gbps each direction along the fiber optic line, but Intel said Light Peak will reach much higher speeds--100Gbps in the next decade, according to Jason Ziller, director of Intel's optical input-output program office.

The Sony endorsement is important, because the company sells PCs, music players, cameras, video cameras, and Blu-ray players. But another company at least as significant had a quieter Light Peak appearance at the Intel show: Apple.

More on Light Peak Alliance:

Exclusive: Apple dictated Light Peak creation to Intel, could begin migration from other standards as early as 2010 (http://www.engadget.com/2009/09/26/exclusive-apple-dictated-light-peak-creation-to-intel-could-be/)

Remember how Intel showed off its new, advanced optical standard -- Light Peak -- this past week on a Hackintosh? Well it turns out there's more to that story than you probably know, and it all leads back to some revealing facts about the connection... literally and figuratively. Engadget has learned -- thanks to an extremely reliable source -- that not only is Apple complicit in the development of Light Peak, but the company actually brought the concept to Intel and asked them to create it. More to the point, the new standard will play a hugely important role in upcoming products from Cupertino.So we have a 100% backward compatible but not quite as capable, copper based, USB 3.0 backed by a broad industry base vs. a more capable, 0% backward compatible, optical based solution backed by Apple, Intel, and Sony. Have I got that right?

Google Web sites, including YouTube, extended their online video popularity as companies such as Viacom, Microsoft and Fox Interactive saw their Web video market share fall over the past couple months.

About 40% of August’s online videos were streamed from Google sites, up from 39% in June, ComScore said in a report today. With YouTube representing all but 1% of its online videos, Google streamed its 10 billionth video last month, while its 25.4 million videos streamed marked a 30% jump from June, according to ComScore.

YouTube has been steadily gaining viewers since April, when the company said it would start offering free full-length movies and TV shows on its site after it reached deals with content providers such as Sony, Lionsgate and Starz.

Meanwhile, Microsoft, Fox Interactive and Hulu, the long-form video site launched last year by News Corp. and NBC Universal, each accounted for about 2% of online videos shown last month, ComScore said. While Hulu’s market share remained steady, Viacom’s and Fox Interactive’s both fell from about 4% in June, according to ComScore.

Overall, U.S. online video sites attracted 161.1 million unique viewers last month, up 2.5% from June, while the duration of the typical online video, at 3.7 minutes, was the same as June.

http://www.videobusiness.com/article/CA6699169.html

Big Ten Network, the cable sports joint venture between Fox Cable Networks and the Big Ten Conference, has selected Comcast subsidiary thePlatform to manage and publish its online video assets.

Seattle-based thePlatform will use its "media publishing system" to provide centralized back-end management support to Big Ten Network for two major Web video initiatives: the "Big Ten Ticket," an international streaming package that will offer live and on-demand game coverage; and regular webcasts aimed at North American audiences.

"We are expanding our online video efforts to serve the fans of the Big Ten Network worldwide," said Michael Calderon, director of new media for Big Ten Network, in a statement. "thePlatform has a proven history of managing large and complex video offerings for many leading content companies, and we believe their system gives us the flexibility, scalability, and ability to monetize video in the way that we need."

http://www.broadcastingcable.com/article/355674-Big_Ten_taps_thePlatform_for_Web_video.php

SD Association Offers Exclusive Glimpse into Technology Behind SDXC Memory Card Standard at CEATEC 2009 (http://www.tmcnet.com/usubmit/2009/09/29/4397071.htm)

SAN RAMON, Calif. --(Business Wire)-- The SD Association (News - Alert) will lead the first public technical discussion of its next-generation SDXC memory card specification at CEATEC 2009 on Oct. 7. The SDXC memory card specification, released in April to members, dramatically improves consumers' digital lifestyles by providing massive portable storage and incredible speed in the same familiar family of card shapes, sizes and interfaces used by millions of people around the world. SD memory cards are the world's most popular storage card and this presentation offers CEATEC attendees a rare glimpse into SD standards normally only available to members of the SD Association.

Hiroyuki Sakamoto, SD Association Technical Committee co-chairman, will present "Next Generation SD Memory Card" at 3:30 p.m. Oct. 7 in the Conference Room in Hall 5. The new SDXC specification provides up to 2 terabytes storage capacity and accelerates SD interface read/write speeds up to 104 megabytes per second for the first phase. The SD Association will have a road map for data transfer bus interface speed up to 300 megabytes per second in the coming months.

"The SDXC memory card specification creates innovative content and media opportunities for manufacturers and service providers and transcends removable memory's traditional role in consumer electronics strategies," said James Taylor, president of the Alliance. "At CEATEC, we'll reveal the SDXC memory card specification from the perspectives of memory card and device manufacturers and users. We'll also look at the many benefits and opportunities manufacturers and service providers win by implementing this new technology." To register for CEATEC and attend the "Next Generation SD Memory Card" session, visit http://www.ceatec.com/2009/en/visitor/admission.html.

The SDXC memory card specification provides the portable storage and speed needed to store weeks of high-definition video, years of photo collections and months of music. It can be used in mobile phones, cameras, camcorders and other consumer electronic devices. The SDXC specification will also be used in business-to-business applications such as industrial, automotive, healthcare and more. Conventional SDHC, Embedded SD and SDIO specifications will also benefit from the new SD interface speeds.

SDXC is an interoperable standard available only to SD Association members. Additionally, a members-only Developers Conference on the SDXC memory card specification, including Supplementary Notes for SD 3.00, Mechanical 3.00, SDIO 3.00, and SD Host Controller 3.00, will be held at the SD Association 2009 Fall General Assembly Meeting in Shanghai on Oct. 15-16. Any organizations interested in an insider's look and access to the SDXC specification should join the Association. Visit http://www.sdcard.org/developers/join/ to apply.

SD Association The SD Association is a global ecosystem of more than 1,100 technology companies charged with setting interoperable SD standards. The Association encourages the development of consumer electronic, wireless communication, digital imaging and networking products that utilize market-leading SD technology. The SD standard is the number one choice for consumers and has earned nearly 80 percent of the memory card market with its reliable interoperability and its easy-to-use format. Today, mobile phones, Blu-ray players, HDTVs, audio players, automotive multimedia systems, handheld PCs, cameras and camcorders feature SD interoperability. For more information about the Association or to join, please visit www.sdcard.org.

Nokia, Samsung, Sony and Toshiba team up on mobile HDMI (http://www.pocket-lint.com/news/27549/mobile-high-definition-interface-working-group-announced)

Top consumer electronics companies have revealed they are teaming up to effectively create a mobile, or mini, version of the HDMI port for portable devices and phones.

Nokia, Samsung, Sony and Toshiba have all announced they are working with Silicon Image to form the Mobile High-Definition Interface Working Group.

The group will go on to create an industry standard for an audio/video interface to connect mobile phones or other portable devices directly to high-definition televisions and displays.

The new standard will be based on Silicon Image's "Mobile High-Definition Link" tech and will be offered as an industry standard open to all companies. The aim is for the standard to be easy and cost effective for manufacturers and simple and reliable for consumers.

Silicon Image says "a single-cable with a low pin count interface will be able to support up to 1080p high-definition digital video and HD audio in addition to delivering power to a portable device".

You can be sure it will be a while before anything is finalised, but we will keep you posted.

DIGITAL: Star Trek, Half-Blood Prince in holiday SD card tests (http://www.videobusiness.com/article/CA6700076.html)

OCT. 2 | DIGITAL: Digital movie kiosk company MOD Systems will begin rolling out kiosks with films from Warner Bros., Paramount Pictures and Anchor Bay through a national retailer in the next month as part of a pilot test, CEO Anthony Bay told Video Business.

Bay said test kiosks should be in stores by Nov. 15, though he wouldn’t give many other details. Consumers will be able to visit the kiosks, search and download films to an SD card, the same cards used to store digital photos on digital cameras. The cards can be placed in SD card slots found on some TVs, PCs, DVD players, mobile phones and other devices for movie playback.

Consumers will be able to download some of the biggest fourth-quarter releases, including Harry Potter and the Half-Blood Prince and Star Trek, on the same day those films are available for download on iTunes. Major films typically are available as a download-to-own purchase on the same day as their DVD release, though digital rentals are available during a film’s video-on-demand window, which usually falls after DVD.

Shoppers will be able to select films on the touch-screen kiosks on their own, but a store employee will be nearby to answer any questions, Bay said.

MOD Systems has tested kiosks in stores before, offering music downloads through pilot locations in Best Buy and Circuit City stores.

MOD, Polar Frog and other companies have been trying to launch digital movie kiosks for the last few years, mostly unsuccessfully. Until last year, most companies were focused on kiosks that would offer downloads burned to DVD. But no studios signed up.

Last year, MOD partnered with Toshiba and NCR, both of which invested $35 million in MOD, and reconfigured its kiosks to download to SD cards rather than DVD. SD card slots are already found in a number of devices, and Toshiba has said it plans to include SD card slots in TVs, DVD players and other devices.

Bay said MOD expects to offer movies from additional studios and indies by the end of the year.

Studios adjust to digital distribution (http://www.variety.com/article/VR1118010062.html?categoryId=3766&cs=1)

A movie used to enjoy a second life on DVD. Now that has exploded into third, fourth, fifth and more lives on digital platforms as studios adjust to the new ways people watch movies outside of theaters.

In addition to slotting discs into traditional DVD players, average Joes and Janes are now downloading or streaming entertainment to PCs, gaming consoles, iPods and other portable devices. To capture that emerging business, studios must distribute movies to dozens of new digital retailers that were virtually unheard of just a few years back, including Xbox Live, PlayStation Store and Amazon Video on Demand.

A single movie can be offered in as many as 250 digital formats worldwide to accommodate the various video resolutions and encoding guidelines of these digital retailers.

Faced with such new responsibilities, studios are changing business models to better cater to digital. Today, many titles launch on cable/satellite video-on-demand, Web-based download sell-through/rental services and physical DVD simultaneously. Historically, studios would give DVD a head start on store shelves, thinking that's where consumers go most.

"We know that consumers are changing their patterns from one platform to another. And we don't want to lose that consumer," says Steve Nickerson, president of Summit Home Entertainment. "If you don't offer it at the same time, you risk losing the sale."

Since its launch two years ago, Summit has rolled out its titles to nearly all available digital services day-and-date with their DVD bow.

Many other studios do continue to impose about a weeks-long window between DVD street and cable/satellite VOD, in the hopes of promoting the more valuable sale over rental transaction. But even that is disappearing as studios are chasing the increasingly digital consumer.

In fact, Warner Home Video decided to street "Observe and Report" and "Ghosts of Girlfriends Past" to certain cable/satellite providers several days before their September DVD releases.

Sony Pictures Home Entertainment began launching select titles day-and-date with VOD this year, starting with August release "Obsessed."

"It's much more beneficial if the consumer buys content (instead of) renting content," says Sean Carey, SPHE exec VP digital distribution. "That being said, we do feel that, for some titles, moving the VOD date to the same day as sell-through can grow (the business)."

Download sales are also rising in prominence at Sony, where more than 3% of home entertainment revenues for "Nick and Nora's Infinite Playlist" came from iTunes transactions.

"This is still a small portion of the home entertainment pie, but digital is becoming an increasingly significant portion," Carey adds.

With the help of the Entertainment Technology Center, studios are engineering an interoperable digital master format (IMF) to further boost their digital businesses. Studios would seriously simplify -- and save money on -- the distribution process with one movie file, instead of 250, that could be delivered to fit most digital retailers.

Based at the U. of Southern California, the ETC has been overseeing regular studio meetings toward this IMF goal. The ETC expects to create a master specification by early 2010, having already completed more than half the work by September.

"We have an outline for all the necessary components required to make the IMF work," says David Wertheimer, ETC executive director. "We are all pleased with the progress. Everyone wants more efficiency in the system. This will definitely take what is now a highly people-intensive, manual process into something that is automatic, predictable and reliable. Studios want to make it easier to get content out as broadly as possible to as many companies that provide digital entertainment."250 different digital formats? :confused:

Nice planning. :rolleyes:

Mobile digital TV nears (http://www.variety.com/article/VR1118010098.html?categoryid=1009&cs=1)

Mobile digital television is a step closer to reality, boosting the hopes of TV stations that they'll soon be able to generate new revenue by beaming their signals directly to cell phones, laptops and other mobile devices.

On Friday, mobile TV cleared a key technical hurdle when the Advanced Television Systems Committee approved a single mobile telecasting standard that stations can use. The ATSC's decision eliminates the possibility of a format war breaking out a la Betamax vs. VHS or HD DVD vs. Blu-ray.

Obstacles still remain, however, before a business can emerge. Broadcasters have yet to persuade content providers, handset makers and mobile carriers to make products and services available for the new technology.

National Assn. of Broadcasters exec veep Dennis Wharton said public demand will make this happen. "Say you're a sports fan at a college football game, and another game that's really important to you is on at same time," he said. "While I'm watching my team live in the stadium, I'll want to be watching the other team on a handheld portable device."

With the technical issues largely settled, broadcasters said they're now focused on figuring out how to make a business out of mobile TV.

"It's good to have this milestone behind us so we can now turn our attention to working with the content community and put the technology to work from a business-model perspective," said Brandon Burgess, CEO of station group Ion Media Networks, who's also prexy of the Open Mobile Video Coalition, the 800-station group advocating mobile DTV.

According to Burgess, two key manufacturers of mobile devices -- LG and Samsung -- are already onboard to produce mobile TV-ready equipment. The next big challenge for stations is to work with mobile service providers.

"It will take some time to get agreements with the Verizons and AT&Ts of this world," Wharton agreed, "but we'll be moving aggressively."

The cost of setting up mobile services is not an obstacle -- it ranges in the low six figures per station -- because broadcasters can use existing tower and transmission infrastructure. Most believe that the content will be largely local and ad-supported, contributing much-needed coin to the beleaguered TV station community.

Disney Touts a Way to Ditch the DVD (http://online.wsj.com/article/SB10001424052748703816204574485650026945222.html)

Walt Disney Co. is close to unveiling technology that it says will enable entertainment companies to adapt their business models to a new reality in which consumers increasingly rely on computers and cell phones in place of DVD players and TVs.

The technology, code-named Keychest, could contribute to a shift in what it means for a consumer to own a movie or a TV show, by redefining ownership as access rights, not physical possession.

The technology would allow consumers to pay a single price for permanent access to a movie or TV show across multiple digital platforms and devices—from the Web, to mobile gadgets like iPhones and cable services that allow on-demand viewing. It could also facilitate other services such as online movie subscriptions.

The company has been quietly demonstrating Keychest for other movie studios and technology companies in a bid to get them to sign on. It plans to unveil the technology next month.

Keychest aims to address two of the biggest hurdles blocking widespread consumer adoption of movie downloads: the difficulty of playing a movie back on devices other than a PC or laptop, and limited storage space on those computers' hard drives.

As such, Keychest could put Disney on a collision course with an initiative, known as the Digital Entertainment Content Ecosystem, or DECE, that has similar goals.

Keychest uses the same "cloud computing" logic that underlies Web-based applications, such as Google Docs, permitting users to store files and photographs on remote Internet servers and access them from anywhere, rather than keeping them on their own computers.

With Keychest, when a consumer buys a movie from a participating store, his accounts with other participating services—such as a mobile-phone provider or a video-on-demand cable service—would be updated to show the title as available for viewing. The movies wouldn't be downloaded; rather, they would reside with each particular delivery company, such as the Internet service provider, cable company or phone company.

The rollout of the new technology comes at a critical juncture for the movie industry. DVD sales, once a financial mainstay for Hollywood, have fallen as much as 25% at some studios. Blu-ray discs and digital downloads from sites like Apple Inc.'s iTunes Store, haven't grown quickly enough to offset the losses. Blu-ray and downloads combined currently make up just 11% of home-video sales, according to industry estimates, with DVDs representing the other 89%. That proportion could grow to 20% next year.

The decline in DVD revenue has undermined the business model Hollywood has relied on for more than a decade. In Disney's most recent quarterly earnings report, its movie studio recorded an operating loss for the first time since 2005.

Bob Chapek, president of home entertainment at Disney Studios, says the company doesn't expect Keychest to deliver tangible financial results for five years. But he predicts that in combination with Blu-ray, digital distribution "should bring our category back up to a healthy state where we can expect growth in the future."

The company declined to name other companies that may have agreed to participate. Apple Chief Executive Steve Jobs is Disney's largest shareholder, and people in the entertainment industry say it would be reasonable to infer that Apple would cooperate with such an initiative.

To be sure, other movie studios may be hesitant to put a competitor in charge of access to their content. And Keychest would allow movie studios to dictate how many devices, connected to which distribution networks, a given title can be played on. That could limit consumer choice and make the system confusing.

The competing DECE effort is being assembled by a consortium headed by Mitch Singer, the chief technology officer of Sony Corp.'s Sony Pictures Entertainment. DECE, announced just over a year ago, includes five major Hollywood studios, plus tech companies like Comcast Corp. and Intel Corp.

Disney and Apple have been notably absent from that group.

Disney executives concede that the Keychest and DECE have similar goals. But they argue their effort represents a more streamlined approach. Instead of designing a new set of standards and formats, as DECE is trying to do, and having participants sign on, Keychest works using a combination of digital file formats that are already common, and recognized by a wide range of existing devices.

Disney executives insist that movie studios, cable companies and Internet service providers who participate in DECE could also use the new Keychest platform. Neither DECE nor Keychest has set a date for when the service would be available.

With Keychest, when a consumer buys a movie from a participating digital-download store, his accounts with other participating services – such as a mobile-phone provider and a video-on-demand cable service—would be instantly updated to show the title as available for viewing.

The Keychest process is enabled by a system that generates a unique "key" when the movie is purchased, then stores that key in a repository. Other distribution services that are Keychest participants automatically query that repository and learn what movies the consumer has paid for.

Movies bought on discs, whether DVD or Blu-ray, could also generate an access key. In the case of a DVD, the user would need to manually type in a code; Blu-ray players are designed to connect to the Internet, and could send codes automatically.

The idea is that if numerous content and hardware companies sign on to Keychest, users could have easy access to a library of movies without toting around discs or data files.

In theory, even if an online entertainment company went out of business, taking down a user's entire movie library in the process, that user would still have access to the same titles via other services.

"Our vision for the future is that consumers won't have to think about where they bought [a movie], how they bought it, or when they bought it," says Mr. Chapek.

NCR Launches Most Secure, Highest Capacity Outdoor DVD-Rental Kiosk in Industry (http://www.melodika.net/index.php?option=com_content&task=view&id=11477&Itemid=50)

The SelfServ Entertainment 2381 features the latest self-service technology from NCR, including a 19” touchscreen display that is specially designed for viewing in sunlight. An optional 26” LCD screen at the top of the unit can be used as digital signage for inventory promotion or brand advertising, and all units are fitted with ATM-grade anti-skimming magnetic stripe reader (MSR) to help prevent fraud. Beyond these standard features, the SelfServ Entertainment 2381 is built with the future in mind, as its flexible architecture enables NCR to easily upgrade units with new technologies when they are ready to be deployed – such as the digital download of video files and a barcode scanner for age verification using drivers licenses.

“Each day, consumers around the world conduct more than 60 million transactions on NCR devices, making us the global leader in self-service technology. We’ve used our knowledge of consumer self-service technology to make the SelfServ Entertainment 2381 the most secure and the highest-capacity outdoor kiosk on the market,” said Alex Camara, vice president and general manager, NCR Entertainment. “This new technology will enable us to work with even more partners as we roll out our BLOCKBUSTER Express-branded DVD-rental kiosks to new locations, including convenience stores and gas stations. Consumers will benefit from easier access to their favorite new release and classic DVDs in accessible, 24-hour locations.”

NCR expects to invest as much as $60 million in 2009 to build out its DVD-rental kiosk operations. The company expects to deploy more than 2,500 kiosks in 2009 for a total of 10,000 kiosks by mid-year 2010.

Microsoft wows Windows 7 crowd with Internet TV (http://www.betanews.com/article/Microsoft-wows-Windows-7-crowd-with-Internet-TV/1256247440)

http://images.betanews.com/media/3977.jpg


While most of the Windows 7 features demo'd at today's New York City launch were already known about far and wide, Microsoft surprised a lot of the crowd with Internet TV, a streaming media capability that just might some day spur consumers to ditch pricey cable TV services like Time Warner and Cablevision.

Internet TV lets you stream video and audio programming directly into Windows 7 Media Center, without the hassles of going to myriad Web sites and downloading multiple players, said Microsoft rep Brian Yee, in an interview with Betanews at the Microsoft bash.

Actually, Internet TV has been under development at Microsoft since way back in September of 2007. Netflix started showing up as a Media Center partner in January of this year, and was soon streaming some of movies into the Vista version. In May, Internet TV for Media Center officially entered beta 2. With today's release of Windows 7, though, the feature finally leaves beta testing behind.

In demos today after company CEO Steve Ballmer's keynote, Microsoft showed Internet TV working together with Play To, a new function in Windows 7 that uses the DLNA 1.5 protocol to send streaming content from a PC to other home-networked devices.

http://images.betanews.com/media/3978.jpg

Microsoft representative Brian Yee demonstrates Internet TV for Windows Media Center in Windows 7, during the big rollout event in New York City, October 22, 2009. [Photo credit: Jacqueline Emigh, Betanews]

Sitting on a couch set up in a mock "living room," Yee clicked on icons in a Windows 7-enabled Acer laptop to beam videos from services like Netflix, MSN, and sundry CBS Audience Network properties to an HDTV from LG and two D-Link digital photo frames. He also sent tunes streamed in from Microsoft's Full Zune Podcast Library to a remote audio system a few feet further away.

As for Netflix, Internet TV only works with those movies marked as streaming-enabled.

The CBS Audience Network videos -- consisting of current TV shows, CBS Classics, short clips, and "Web originals" -- are available in the US only, whereas Sky Network content is available in the UK only, said Yee.

"But we're also really interested in Internet TV partnerships with other entertainment content providers," noted the Microsoft rep.

Comcast prepares to launch online video player (http://www.philly.com/philly/business/20091021_Comcast_prepares_to_launch_online_video_player.html )

Comcast Corp. says it has developed an online video player that gives viewers a TV experience on the Internet, and the cable giant intends to put shows and movies from 24 cable networks online by the end of 2009.

But it won't be free, which is what most people have come to expect of content on the Internet.

Comcast cable customers - about 24 million in the United States - will have sole access to the cable TV fare through an online password and authentification process that references Comcast customers' billing records.

About 5,000 Comcast cable customers tested On Demand Online this summer. Comcast says it will expand the service, which customers will use through the Fancast.com and Comcast.net Web sites, to all its subscribers by Jan. 1. The company will e-mail customers to tell them when the service goes live.

Comcast chief executive officer Brian L. Roberts yesterday updated the media and industry officials on the new service at the Web Summit 2.0 gathering of technology executives in San Francisco.

In Philadelphia, Comcast executives discussed the project, which was initially announced in June with Time Warner Inc. and was called at that time TV Everywhere. "All the metrics are good, and we are just getting started," said Madison Bond, Comcast's executive vice president of content acquisition.

Comcast has negotiated deals with content providers to make the entertainment available on the Internet. Those participating include Time Warner, Starz, CBS, and the Discovery Channel. Bond said that Comcast was still securing programming rights for additional cable TV and movie content for the Internet.

Comcast views On Demand Online as an extension of a cable package for customers and allows entertainment companies new sources of online advertising. Bond declined to discuss programming deals.

Alix Cottrell, vice president at Fancast.com, said Comcast developed the online video player with an outside firm.

Through a special bit-streaming technology, the player smooths out the jerky movements of other online players by slightly altering the brightness of the TV picture when there are problems with Internet speeds.

Executives in the cable industry fear that if they do not move quickly to put more entertainment and news online, hackers could begin posting pirated entertainment and news on the Internet and undercut the cable TV business model - which is what happened to the music industry.

Comcast executives also are vehement about not putting entertainment and news online for free.

With On Demand Online, Comcast customers view only those cable TV networks in their individual cable TV packages. Thus, customers who purchase HBO or Cinemax on their cable TV can view HBO and Cinemax on their computer. But if they do not purchase HBO or Cinemax in their Comcast cable package, they cannot get it online.

Comcast's project to exploit the Internet comes as Wall Street analysts are speculating how cable companies will deal with Internet video. The big threat is that customers will cancel their cable TV service, although cable executives and others say they believe online video can be complementary to cable TV services and boost revenue through new advertising.

Industry experts have said that online video may be one reason that Comcast is negotiating to purchase NBC Universal Inc., one of the nation's largest movie and TV studios.

Comcast is in advanced talks with General Electric Co. to acquire a 51 percent stake in NBC Universal. The deal includes provisions for Comcast's eventually buying all of NBC Universal.

By owning the Hollywood entertainment, Comcast can control the flow of entertainment to the Internet, some contend.

Comcast says TV-over-the-Net getting high marks in testing (http://philadelphia.bizjournals.com/philadelphia/blogs/technology/2009/10/comcast_says_tv-over-the-net_getting_high_marks_in_testing.html)

Comcast Corp. has increased to 7,000 from 5,000 the number of customers testing the TV-over-the-Net service it plans to roll out by the start of next year.

The company’s head honcho, Brian Roberts, showed off the service, which Comcast calls On Demand Online, at the Web 2.0 technology conference in San Francisco earlier this week.

The service allows customers to use computers to view on-demand programming from channels to which they subscribe.

That means Comcast customers who get HBO can use it to watch all the movies, shows and other programs available on demand from HBO on their computers as well as their TV sets.

Comcast said 90 percent of the people testing the service say they really like it and that the average time they spend viewing a video available through the service is 21 minutes.

Channels available through the service include HBO, Cinemax, Starz, Encore, CBS, TNT, TBS, E!, the Style Network, G4 and Fearnet.

Sony PS3 Will Get Netflix Streaming Next Month (http://www.businessinsider.com/sony-ps3-will-get-netflix-streaming-next-month-2009-10)

Netflix's movie and TV streaming service will become available for Sony's PS3
videogame console, the companies announced. The PS3 is now the only videogame console that plays Blu-ray discs and Netflix streams.

But there's a twist: PS3 users will initially need to run a (free) Blu-ray disc to play online movies. From Netflix:

Initially, watching movies instantly streamed from Netflix via the PS3 system will be enabled by a free, instant streaming Blu-ray disc that is being made available to all Netflix members. The free instant streaming disc leverages Blu-ray’s BD-Live™ technology to access the Internet and activate the Netflix user interface on the PS3 system, which must be online via Wi-Fi or Ethernet.

Netflix members simply slide the disc into their PS3 systems to reveal movies and TV episodes that can be watched instantly. ... Netflix members and PS3 system owners can now reserve a free instant streaming disc for PS3 systems by going to www.netflix.com/ps3. Upon availability, the instant streaming disc will be delivered for free by first-class mail, generally one business day after members request it.

Great news for both companies: The PS3 is finally selling, and could provide new subscribers (and lower churn) for Netflix. (Sony has sold about 9 million PS3s; Netflix has about 11 million subs.) In September, the PS3 outsold the Xbox and Wii in the U.S., according to NPD Group. And now it gets another great feature.

This ends Microsoft's exclusive with Netflix: While Netflix's streaming service is now available for a handful of devices, the Xbox 360 had previously been the exclusive videogame gadget.

And unlike the Xbox-Netflix tie-up, which requires an Xbox Live subscription, the Netflix add-on will be free for PS3 owners.

This was expected since people speculated that Xbox Live had a 1 year exclsuive agreement for gaming systems. And Sony had started putting NEtflix on their other devices.

Netflix will be in almost everything now. Well not everything, but enough that the other makers will be wanting to add NEtflix in their devices since it will be considered the norm now.

Roku introduces two new set-tops, teases additional content channels coming next month (http://news.cnet.com/8301-17938_105-10383063-1.html)

Roku is prepping its set-top box line for the holiday season by adding two new models and new content "channels" due within the coming weeks.

The step-up Roku HD XR Player ($130) adds faster 802.11n. Wi-Fi and a USB port "for future use." The step-down model, known simply as "the Roku Player," loses the HD outputs of its siblings; it'll retail for $80. The two new boxes will have the same look and feel of the existing Roku box, which is being redubbed as the Roku HD Player. That model (802.11g Wi-Fi, no USB port) will continue to be available at the same $100 price point.

Currently, the Roku boxes have three content channels: Netflix (unlimited streaming of thousands of TV shows and movies for Netflix subscribers); Amazon Video-on-Demand (thousands of movies and TV shows available on a pay-per-title basis), and MLB TV (out-of-area Major League Baseball games, available as a seasonal subscription). However, the imminent (November) launch of the "Roku Channel Store" will add an expanded roster of programming options, including some free content. That should include the already announced Blip.tv and Mediafly channels, and may include some others as well.

We'll have a full review of the Roku HD XR Player once the new programming options appear next month via a firmware update. (Right now, the HD XR's USB port is disabled, so there's not a lot to test.) Wonder what that USB port on the HD XR is for? ;)

DIGITAL: Analyst: Service will attract core fans, not everybody

Disney's Keychest expected before competitors (http://www.videobusiness.com/article/CA6704047.html)

OCT. 27 | DIGITAL: Walt Disney Co. is likely to launch its Keychest service, to enable consumers to access digital content on a number of different devices, before competing services offer their own versions of a digital content cloud, market research firm In-Stat said in a research note Monday.

Last week, Disney announced Keychest, technology developed by the studio that would allow consumers to buy digital or packaged content and access it later through different digital platforms, such as mobile phones or videogame consoles. Content would be stored on a “digital cloud” so consumers never have to download it but can always access it.

In-Stat principle analyst Gerry Kaufhold predicts Disney will be able to make some money from Keychest fairly quickly, but he noted it’ll take some time for digital content to catch on with consumers. And even then, some consumers will stick with packaged media.

“Not everybody wants to do this,” Kaufhold said. “Disney has a dedicated group of fans; they’ll be able to get some percent of the Disney fan base to use it because it provides portability of their content and permanence of their content. For Disney, it’ll work, and if it works for Disney, there’ll be others trying it out too.”

He said it’s possible Disney will get its Keychest technology off the ground before the Digital Entertainment Content Ecosystem — a consortium that includes every major studio except Disney, and such major companies as Sony Computer, Microsoft, Intel, Comcast and Best Buy — introduces its own open system to allow digital access to content across platforms.

Kaufhold said Keychest is part of a larger trend by content holders to keep their content under their direct control. He expects Disney will eventually create a content exchange for distributing digital content securely to various service providers under rules the studio establishes.

Take with grain of salt...

Confirmed: Netflix Streaming Coming To The Wii Very Shortly (http://blog.streamingmedia.com/the_business_of_online_vi/2009/10/confirmed-netflix-streaming-coming-to-the-wii-very-soon.html)

Last week I received some images that showed Netflix streaming on a Wii console. I didn't run with the story at the time as I didn't know if the images were legit and it's taken me until today to confirm they are in fact real. I'm not disclosing who confirmed it for me but someone involved in the project has confirmed that Nintendo is currently in testing stages with Netflix to bring their streaming service to the Wii very soon.

What I'm hearing is that Nintendo originally planned to bring the Netflix service to the Wii before the end of this year, which still might take place, but that Nintendo is also considering holding off on the Netflix service until they release their next generation Wii HD unit in early 2010.

Note: I am not sharing any of the images I received as I don't want to burn the person who sent them to me.

Hands On with Apple TV 3.0 (http://www.pcmag.com/article2/0,2817,2354996,00.asp)

Apple on Thursday introduced version 3.0 of its Apple TV software, an upgrade that includes a revamped user interface, as well as access to iTunes LP, iTunes extras, Genius mixes, and Internet radio.

The new software is available now at no charge for existing Apple TV owners.

"The new software for Apple TV features a simpler and faster interface that gives you instant access to your favorite content," Eddy Cue, Apple's vice president of Internet Services, said in a statement. "HD movies and HD TV shows from iTunes have been a huge hit with Apple TV customers, and with Apple TV 3.0 they get great new features including iTunes Extras, Genius Mixes and Internet radio."

Apple introduced iTunes LP and iTunes extras during a September launch event for iTunes 9, the iPod nano with video camera and FM tuner, and lower iPod prices.

With iTunes LP, users get a host of additional music information, like lyrics, photos, writing, memorabilia, liner notes, chronology, credits, videos, and more, while iTunes extras function much like DVD extras, with a few more interactive features. With the software upgrade, users can access this content for full-screen viewing.

The home screen provides access to movies, TV shows, music, podcasts, photos, Internet, and settings. Hover over a selection like movies and a drop-down menu will present options like my movies, top movies, genres, all HD, search, and trailers.

On the music front, users can access Genius Mixes currently available on iTunes. Like you would on your iPod, select a song, press play, and then hold down the play button until the Genius option pops up. Apple will then configure a playlist of songs similar to the selected song. Version 3.0 can support up to 12 endless mixes, Apple said.

The Internet radio option provides access to thousands of Internet radio stations, Apple said.

Free Online Movie Weekend, Thanks to Epix (http://www.videobusiness.com/blog/1730000173/post/200050220.html)

New pay movie service Epix is rolling out a free three-day online preview of its service starting today.

People can access the available content, including blockbuster film Iron Man, concert title Madonna “Sticky & Sweet: Live from Buenos Aires and comedy special, Eddie Izzard: Live From Wembley, at Web site EpixHD.com

Other films slated for the free preview include The Curious Case of Benjamin Button, Madea Goes to Jail, Pink Panther 2 and Indiana Jones and the Kingdom of the Crystal Skull.

Epix president Mark Greenberg, said of the promotion, “A free online preview of this kind that is truly available to anyone with Internet access has never been done before. We want people to experience entertainment this way -- giving them a taste of what it is like to have anywhere, anytime access to the movies, concerts and comedy specials from the incredible studio partners that have established Epix.”

Following the preview,Epix will revert back to its premium format spanning video-on-demand and online platforms. The channel is a joint venture between Viacom, Paramount Pictures, MGM and Lionsgate. It launches with over 150 films and additional programming.

How do you get signed up for the free weekend?

Free Online Movie Weekend, Thanks to Epix (http://www.videobusiness.com/blog/1730000173/post/200050220.html)

being free is the only time Epix would be worth it. It is not even close to being worth $10 a month for only one HD channel.
there is nothing special about the programming EPIX offers.

....This is a news thread. If you would like to start your own thread, you can.

More on Epix:

Epix Launches One-Two Punch With TV-Web Movie Channel (http://www.technewsworld.com/story/Epix-Launches-One-Two-Punch-With-TV-Web-Movie-Channel-68524.html)

The movie channel Epix launches Friday, and it will only be available on one broadcast provider: Verizon FiOS. However, that's not the only way subscribers will be able to see it -- it'll also offer an online channel with HD content. For a debut promo effort, Epix is inviting some potential customers to free weekends of online services throughout November.

It's enough of a challenge to launch a new subscription movie channel in an industry segment dominated by the likes of HBO and Showtime. However, Epix, which begins life Friday, starts its adventure with a double feature of sorts: It will also offer a Web streaming version of its channel.

That means Epix's Chief Digital Officer Emil Rensing will have a busy Halloween, making sure the user experience for those potential paying customers will be more treat than trick as they seek other alternate forms of entertainment on their PCs.

"Our goal is to acknowledge the audience trends and habits and desires are changing," Rensing told TechNewsWorld. "We didn't want big, heavy, complicated pieces of software to download, that consume resources and overly complicate things. If you get the channel at home on your TV, then you can go online, authenticate with data that the TV gives you, and you're free and clear to watch the movies."

Thanks to the crowd of channels already available on your TV set-top box, Epix -- a joint venture between Paramount Pictures, MGM and Lions Gate -- launches on only one broadcast provider: Verizon FiOS for a US$10 monthly fee. However, online movie lovers can go to epixhd.com/invite and see if they will be one of the lucky few to experience standard- and high-definition movies on their computers for free for three-day weekends throughout November.

An Epix Experience

There are only about 150 movies to sample online if you get the invite this weekend from Epix. However, they're not cult classics or public domain freebies; we're talking "Iron Man," "Indiana Jones and the Kingdom of the Crystal Skull," "The Curious Case of Benjamin Button," "Madea Goes to Jail" and other relatively recent visitors to your neighborhood multiplex. Epix is also throwing in what it says are broadcast and online premieres of a Madonna live concert and a performance by Eddie Izzard at London's Wembley Stadium.

Eventually, 15,000 movies in the Epix library will end up also online, addressing what Rensing said is a need for quality, high-definition, DVD-like entertainment on a PC. "I get both HBO and Showtime in my house, and it drives me nutty that the only option to watch them is in front of my TV. It's awesome to go online and watch the movies," he said.

Some HBO and Showtime programs like "Entourage" and "Weeds" have been available on Apple's iTunes for some time, but Apple makes its own deals with the same studios providing movies to the pay channels, and it charges its own download purchase/rental fees as well.

"Apple has a great philosophy of how they built their technology. They focus on keeping honest people honest. That's the approach we're taking. You authenticate, click twice and you're watching movies," Rensing said.

Epix will also be offering behind-the-scenes programs related to their movies, much like the special features you would find on a DVD. Like Disney's (NYSE: DIS) BD-Live service that allows Blu-ray disc owners to watch movies with friends online and chat with them, Epix willl offer a virtual "private screening."

The Technical Consideration

The Epix streaming technology sits on Akamai's FMF35 hosting service, Rensing said, and buffering chances are minimized by encoding the feature films six times. "The player will automatically and dynamically adjust the quality level" to match up with download speeds into a broadband connection. His company will have done everything it can, he believes, to maximize the online viewing experience. "We didn't want people to download software, so we went with Flash. We're trying to avoid the pitfalls of making things too complicated, of creating too high a barrier of success on the technology front," he said.

It's the things Epix can't control that may provide the annoyances to users, said Ben Bajarin of Creative Strategies. "Your PC hardware really matters in this case," Bajarin told TechNewsworld. "You can't have a pleasurable Hulu experience on a netbook or even on a midstream PC. You need something with horsepower."

Epix does has an advantage over the traditional media outlets exploring online alternatives by offering its Web streaming service as a benefit to the $10 monthly subscription fee, Bajarin said. "If you get the channel, you get this premium online experience also," he explained. "You're balancing the weight of those two, which is really valuable. My biggest frustration with the major networks is they're really balancing their priorities between broadcast and broadband, and obviously broadcast is their singular priority, and what they do online really suffers because they don't want to truncate the value of broadcast. On this one, you sign up for this TV service, and as an added benefit, you get it online."

I received a code for the free weekend from Epix. But apparently you must have Fios Internet and TV. The link is below.

http://www.epixhd.com/#me_tab

FIOS is currently the only provider carrying EPIX.

Apple’s iTunes Pitch: TV for $30 a Month (http://mediamemo.allthingsd.com/20091102/apples-itunes-pitch-tv-for-30-a-month/)

Would you pay $30 a month to watch TV via iTunes?

That’s the pitch Apple has been making to TV networks in recent weeks. The company is trying to round up support for a monthly subscription service that would deliver TV programs via its multimedia software, multiple sources tell me.

Apple isn’t tying the proposed service to a specific piece of hardware, like its underwhelming Apple TV box or its long-rumored tablet/slate device. Instead, the company is presenting the offer as an extension of its iTunes software and store, which already has 100 million customers.

A so-called “over the top” service could theoretically rival the ones most consumers already buy from cable TV operators–if Apple is able to get enough buy-in from broadcast and cable TV programmers.

That’s a big if: Apple has told industry executives it wants to launch the service early next year, but I have yet to hear of a single programmer that has made a firm commitment to the company, which has tasked iTunes boss Eddy Cue with promoting the idea.

Industry executives believe that if anyone jumps first, it will be Disney, since CEO Bob Iger has shown a willingness to experiment with Apple and iTunes in the past: In 2005, Disney was the first player to sell its programming on iTunes, via a-la-carte downloads. And Apple CEO Steve Jobs is Disney’s largest single shareholder, a result of Disney’s 2006 acquisition of Jobs’s Pixar animation studio. Apple didn’t respond to requests for comment.

Network executives I’ve talked to are intrigued by the idea–they are eager to find new revenue streams–but are also wary, for several reasons.

Cable networks, for instance, don’t want to threaten existing relationships and subscription fees from cable providers like Comcast. And programmers are also worried about the effect a subscription service would have on advertising revenue: Even if the service didn’t distribute TV programs until after their initial air date, that could cut into ratings, which now measure viewership over the course of several days.

But the move to deliver TV and movies over the Web is already well under way. Netflix , for instance, already bundles free streaming movie and television along with its disc-by-mail subscription service. iTunes and Amazon (AMZN) rent movies on a one-off basis, and Google’s YouTube is trying out the same thing. Meanwhile, Hulu, the joint venture between GE’s NBC, News Corp.’s Fox, and ABC, is figuring out how to launch a paid service that may include rentals, paid downloads or subscriptions.

So Apple’s proposed subscription service, which the company has floated in the past, is no longer a huge stretch. Says one executive briefed on the company’s plans: “I think they might get it right this time.”

Best Buy plans movie download service with Sonic (http://www.reuters.com/article/americasMergersNews/idUSN0348308120091103)

NEW YORK, Nov 3 (Reuters) - Best Buy Co Inc (BBY.N) plans to start an online service that allows consumers to buy, rent and download movies and television shows, the electronics retailer said on Tuesday.

The system, based on Sonic Solutions' Roxio CinemaNow service, would be built into devices sold at its stores, including television sets, portable media players, computers, mobile phones and other devices from a variety of manufacturers.

Sonic Solutions shares jumped 16.6 percent on Tuesday after the announcement of the deal, which could accelerate the usage of the CinemaNow system for distributing video and media to electronic devices.

Under the terms of a multiyear agreement, Best Buy will license Roxio CinemaNow technology and acquired warrants enabling it to purchase shares of Sonic Solutions common stock.

Best Buy expects to provide access to thousands of new movies, independent films, and older catalog movies, with some new titles available on the same day as the comparable DVD goes on sale. The company did not give the name of the service, or when it would launch.

CinemaNow, an online movie pioneer, has provided similar services to others, such as computer maker Dell Inc and movie rental company Blockbuster Inc.

The service could strengthen Best Buy's ability to compete with a established online media destinations, including Amazon.com Inc and Apple Inc's iTunes store.

"Our relationship with Sonic Solutions allows Best Buy to quickly establish a strong position in the digital delivery of video entertainment," Brian Dunn, chief executive of Best Buy, said in a statement.

Best Buy bought digital music service Napster Inc about a year ago in an effort to compete with Apple's dominant iTunes service.

The shares of Sonic Solutions, which acquired CinemaNow late in 2008, jumped 91 cents to $6.15 on Tuesday afternoon on Nasdaq. Best Buy shares made narrow gains, rising 27 cents, to $39.16 on the New York Stock Exchange.

On the Call-Comcast CEO Brian Roberts (http://www.google.com/hostednews/ap/article/ALeqM5ge3fcPfuP5gB-jVmCnnsPJKYLebQD9BOSGEO0)

Comcast Corp.'s answer to the growing popularity of watching video over the Internet is to launch its own online video service in December that would let subscribers view cable TV shows and movies on their PCs at no additional charge.

While the cable TV industry has been a bit wary of online video because viewers could then bypass their cable systems, Comcast CEO Brian Roberts has decided to go head-to-head with the trend.

By the end of the year, Comcast will be the first cable TV operator to unlock cable content en masse for its customers. At present, most cable shows typically would be available over the Internet only by buying it from other services, such as Apple Inc.'s iTunes, or if downloaded illegally.

The nation's largest cable TV operator, now also the biggest Internet service provider, has joined forces with two dozen cable networks and broadcasters to launch the service. Initially dubbing it "On Demand Online," Comcast said it will be changing the brand name.

Time Warner Cable Inc., Verizon Communications Inc. and DirecTV Group Inc. are planning to offer a similar service.

Now, Apple is reportedly gunning for the pay-TV industry by selling a TV service through iTunes that costs $30 a month.

QUESTION: Do you see this as a long-term threat to Comcast?

ANSWER: "I've been saying for a long time that I think video over the Internet is more friend than foe. ... Specifically to the Apple reports, let's wait and see what does materialize. I read the reports myself. I think there are many folks who want to deliver parts of the experience.

"I think a little bit goes back to (the) question, which is, why can't we have the most robust experience right to the TV set, right from Comcast Cable? And I think we very much take all these possibilities and use it as a galvanizing mechanism inside the company to come up with better and more innovative products."

Blockbuster, Hollywood Video First to Have MOD SC Card Kiosks (http://www.homemediamagazine.com/kiosk/blockbuster-hollywood-video-first-have-mod-sc-card-kiosks-17518)

Six Blockbuster and Hollywood Video stores will have MOD Systems’ Secure Digital (SD) card kiosk systems up and running by Nov. 13, offering more than 1,000 new release and catalog titles for rent from Paramount, Warner Bros. and others.

Among the first new releases carried day-and-date with DVD and Blu-ray Disc is Warner Home Video’s Dec. 8 release of Harry Potter and the Half-Blood Prince.

The Blockbuster locations will be in the Dallas area, while the Hollywood Video kiosks will appear in the Seattle and Portland, Ore., areas.

The kiosks, dubbed MOD Retail Digital Content Distribution System, will offer rentals only during the trial run, with consumers able to download content directly to SD cards, which can then be used on electronic devices with SD card slots.

Rentals will be tested at various prices, MOD said, and consumers will have 30 days from purchase to watch the content. After consumers view the content, it will be available for 48 hours before the digital rights management technology included locks it, preventing further viewing.

Alex Camara, VP and GM of NCR Entertainment, which helped develop the system, said Blockbuster was an easy retailer choice to test the kiosks, since NCR already helps to provide consumers with DVD rentals via Blockbuster Express branded kiosks. By putting the MOD kiosks in Blockbuster and Hollywood Video stores, where consumers are already headed for movie rentals, he said MOD is giving consumers the choice between physical disc and pure digital-file content.

“We’ve worked on this for a long time, and Blockbuster was a logical first choice for us to work with,” he said. “This is why NCR made an investment in MOD Systems. Digital is a vital part of this business, and this pilot is a very important part of our future.”

Anthony Bay, CEO of MOD Systems, said the rentals will include a digital media player to facilitate playback, but he expects some consumer electronics devices may still have problems reading the content. He said he hopes that in the next year third-party devices will be readily available to play SD card content on devices that may not have an SD card slot.

“We’re talking with more retailers right now, and we’re discussing what’s the right location for the kiosks, the right price points for content,” he said. “The purpose of this trial is a learning process. And this lets consumers decide which format works best for them.”

By early 2010, MOD aims to increase the number of offerings from about 1,000 to more than 1,500.

For consumer generated video:

1080p HD Is Coming to YouTube (http://youtube-global.blogspot.com/2009/11/1080p-hd-comes-to-youtube.html)

We're excited to say that support for watching 1080p HD videos in full resolution is on its way. Starting next week, YouTube's HD mode will add support for viewing videos in 720p or 1080p, depending on the resolution of the original source, up from our maximum output of 720p today.

As resolution of consumer cameras increases, we want to make sure YouTube is the best home on the web to showcase your content. For viewers with big monitors and a fast computer, try switching to 1080p to get the most out of the fullscreen experience.
...
Have an HD camera? We would love to see your awesome 1080p videos! Be creative and choose subjects that really show off the beauty of your camera. We will run the best examples on our homepage in a future spotlight.

And those of you who have already uploaded in 1080p, don't worry. We're in the process of re-encoding your videos so we can show them the way you intended.

Xbox Live moves to Zune Video Nov. 17 (http://www.videobusiness.com/article/CA6706868.html?industryid=47275)

NOV. 12 | DIGITAL: Xbox Live will upgrade to Zune Video Nov. 17, allowing viewers to instantly stream TV shows and movies in high-definition through the game console rather than wait hours for them to download, as is the case now.

Along with the video upgrade, Xbox is adding social networks Facebook and Twitter and music from Last.Fm to the console, part of Microsoft’s drive to make the Xbox the living room entertainment device. The company announced the planned upgrades at E3 in June, but until today hasn’t said when they would be available.

Xbox Live general manager Marc Whitten announced the Facebook and Twitter launch date at a NewTeeVee Live conference Thursday morning. A spokeswoman confirmed that Xbox also would switch to Zune Video that same day.

Not only will Zune instantly stream movies, it also will offer a larger selection of 1080p high-definition films, a step up in picture quality from the 720p high-definition now offered through Xbox Live.

Microsoft has said users will be able to access content they buy from Zune Video through the Xbox, Zune portable and PC.

Earlier this week, news broke that Xbox had banned 1 million or so players from the Xbox Live service because of altered game consoles to play pirated games. Asked at the NewTeeVee Live event whether the ban was related to video piracy, Whitten said it wasn’t an issue on the video side.

Comcast’s TV Everywhere might actually work everywhere (http://blogs.reuters.com/mediafile/2009/11/13/comcasts-tv-everywhere-might-actually-work-everywhere/)

Comcast’s Interactive Media president Amy Banse talks on this video clip about the launch of TV Everywhere in December at the NewTeeVee Live 09 event. TV Everywhere, for anyone who’s been on Mars for the last year, is the cable industry’s attempt to make cable programming available over the Web for no extra charge to paying subscribers. Comcast’s version of it will actually be called On Demand Online and is currently on trial with 5,000 Comcast homes. This chat with Banse gives some insight into the largest U.S. cable operator’s plans and includes a couple a couple news nuggets for watchers of this space:

•On Demand Online will launch, as previously hinted, this December.

•Banse says users will be able to watch their favorite shows with authentication even when they’re away from home (Is this the death of EchoStar’s SlingBox?). It’s not clear from this interview if out of home on demand will work when a user is outside the United States.

•Each home will have authentications rights to watch their shows on three different devices.

•One issue Banse acknowledges still needs to be sorted out is the right advertising model to help support this new channel. “We’re in the first inning” she says.Early December.

Video is in the link.

a Boxee Box is coming! (http://blog.boxee.tv/2009/11/12/a-boxee-box-is-coming/)

We launched our public alpha for Mac/Linux in January at CES. During the show we met with several device manufactures interested in embedding Boxee into their existing devices or building a dedicated Boxee device.

I am very happy to announce we have signed our first partnership with a CE company. At this point we can not say more about the partner or the specs of the device, but we can tell you we are working closely with them to make sure we deliver a great Boxee experience on it.

We will show mockups of the box and share more details at our upcoming Boxee Beta Unveiling event in Brooklyn, NY on Dec 7th. RSVP here.

Over the next few years there will be a great change in the way we consume entertainment on our TV. The Internet is (finally) coming to the TV and with it will come a whole new world of content, applications and innovations.

We are building Boxee as a platform that would:

•make it easy for users to consume and find content – no matter what the source

•give content owners, aggregators, and developers the tools to create unique experiences with a variety of business models

•enable CE companies to enhance their Connected devices

This will be the first connected device running Boxee, but the idea is to provide consumers with a way to get Boxee in their living rooms, no matter whether it’s on a Connected TV, game console, set-top box, BluRay player, computer, etc.

Our goal is to be on every Connected device in the living room.

We are very excited about the partnership and looking forward to sharing more at the event.

MOD digital kiosks make downloads easy (http://www.videobusiness.com/article/CA6708295.html)

NOV. 20 | REVIEW: After years in development, MOD Systems' digital movie kiosks, the first that offer major Hollywood movies, rolled out to a handful of Hollywood Video and Blockbuster stores last week in a test. For customers savvy enough to remember to bring their SD cards to the video store, the kiosks offer a sleek, hassle-free way to rent movies.

At the Hollywood Video in Hillsboro, Ore., just outside Portland, two kiosks from MOD and partner NCR Corp. are set up at the main entrance, so the “Download 2 Go” sign above them is the first thing customers see when they walk through the front doors.

The first night I visited, a customer was browsing through one of the kiosks. At this particular Hollywood store, MOD has a sales guy on hand most days standing by the kiosk to demo how they work and answer customer questions. Check out this video of a MOD salesmen explaining how the kiosk works.

For now, customers who want to try it must buy a MOD GreenPlay set-top for $49.95. It comes with an 8GB Extreme SanDisk SD card, which generally retails for $50 to $60 and can hold several movies, depending on their file size. (Eventually, it's expected that consumers will be able to plug those cards into TVs, Blu-ray Disc players and a growing number of consumer electronic devices with SD card slots. That should make it a more viable option for those consumers weary of buying another box for the TV. )

All movies cost $1.99 to rent, though MOD, NCR and retailers are testing different price points and sales models at each pilot location. Right now, the kiosks have movies from Warner, Paramount and Anchor Bay, something that is likely to somewhat limit the appeal to consumers.

The touch-screen kiosks are easy to use. A new release section is shown on the start-up screen and brings up the latest releases when touched. There are also sections for catalog, family and other genres, and users can search by movie title or actor. Once a user picks a film, they can look up other similar films on the kiosk as well.

To rent a film, consumers simply slide their SD card into the kiosk slot, press “rent” and movie picks are added to their cart. After clicking though the checkout menu and swiping their credit card, movies begin downloading immediately.

I should note, I initially tried downloading to the SD card that came with a review copy of the GreenPlay device MOD sent reporters and it didn’t work. I was told by MOD reps that the card had been specially formatted with pre-loaded movies and should work after it’s reformatted. I had no problems downloading movies to an SD card included with an MOD device sold at Hollywood, which I ended up using.

The two films I rented, Star Trek and I Love You, Man, took about two minutes to download. That compares to the 30 minutes or so it took me to download Star Trek and bonus features earlier this week from iTunes with my superfast 16mbps+ Comcast Internet connection. I didn’t have to leave home for that download, but without the Apple TV, I can only watch it on my computer or iPhone. (And no, it’s not possible to review digital downloads without a complaint about the lack of compatibility between digital devices.)

Watching the MOD downloads was a sleek experience. The set-top box was easy to set up. And to watch the movies, I simply slid my SD card into the slot and pressed power. Box art for both movies popped up on the screen, with details underneath about how many days I had to watch each film. (Films are available for 30 days after they’re downloaded, but only for 48 hours after you first click play.) Check out this video of the playback menu on the TV.
Using the GreenPlay remote, I clicked on Star Trek, which pulled up an easy-to-read screen with a synopsis of the film and actors. I clicked play, and the movie started right up (with thankfully no FBI warning, though I’m sure studios will fix that at some point!). The film played seamlessly, and the picture quality, although not high-def, was still excellent.

For rentals, it’s a compelling option, one I’m already planning to try again. Though, I worry I’ll forget to bring that little SD card with me when I head to the video store. Maybe MOD could come out with some type of keychain or something to make it easier to cart around.Check out the video links.

GreenPlay User Manual here.

http://www.modsystems.com/media/plugins/files/File/PDF/GP-1000_Setup_Guide-20090331.pdf

Rogers Puts TV on the 'Net with On Demand Online (http://www.mediacastermagazine.com/issues/ISArticle.asp?aid=1000348735)

Rogers Communications has booted up its new online TV service, providing its customers with online access to specific broadcast programming and entire TV channels.

The beta version was shown to a media audience yesterday, at an event entitled ‘The Next Big Thing in Television’, with announced plans for full launch on November 30th, 2009.

The Rogers On Demand Online web portal provides Rogers customers with a video player with full screen option, content search tools (by name, genre, date aired and other parameters), in order to watch TV content at a time and place of their choosing.

Rogers’ owned properties, such as Sportsnet, will certainly appear on the portal, but also programming from other broadcasters, including TVO, Citytv, Treehouse and SuperChannel, among many others. More content partnership announcements are forthcoming.

Dave Purdy, Vice President Video Product Management at Rogers Communications helped unveil the service, noting that its kicks off with content from some 16 broadcast partners and 19 TV and specialty channels. “Our vision is to have every partners’ content online,” Purdy explained, saying the goal is to provide customers with access to content in their chosen fashion, be it linear TV, digital cable On Demand or now the online On Demand service.

Early descriptions and proposals for such a service had been made by Rogers at recent industry events, including hearings held by the Canadian Radio-television and Telecommunications Commission, both into so-called ‘Net Neutrality issues, as well as the more recent hearings on TV funding. Dubbed somewhat facetiously by CRTC commissioners as the “Purdy Portal”, the Rogers On Demand Online portal is now a reality.

What’s more, Purdy, along with Senior Director of Product Management, Broadband Entertainment Jeremy Butteriss, noted that mobile services will be added to the service, planned for Q2 of 2010. Social media tools and site links will be added going forward, live events will be covered by online streaming services – a service that speaks to many of Rogers’ own properties, such as its sports teams and facilities.

Access to the site is for Rogers’ customers; Purdy noted that any Rogers cable or wireless client would be able to use the online services. Certain authentication or entitlement procedures will both ensure customers get access to the appropriate services, as well as protecting the broadcast partners’ program rights, Purdy described. Freely accessible content, as well as premium programming, is planned.

Other content restrictions can arise from territorial rights negotiations, and geo-blocking requirements that result. Rogers has obtained online program rights for Canadian distribution, Purdy explained, but not in the U.S. Ge-regional rights, such as for some sports properties, also have to be negotiated.

However, the portal's back-end system allows the provider to monitor and identify cable modem IP addresses, link to subscriber data and service package descriptions, and to ensure entitlement or authentication to corresponding online content. Tiered cable package definitions and content access will be mirrored in the online portal, so that content access online reflects a customer’s existing cable service level. Purdy noted that any additional cable service would almost immediately be reflected in the online access.

Lara Skripitsky, Director of Marketing for Broadband Entertainment at Rogers, demonstrated the front end of the system, noting basic navigation choices through the site that provide access to content by category (TV Shows, Movies, Genres, Channels, What’s Hot ), Favourites, Most Watched and more. She showed how programs can be paused, rewound or fast forwarded using control on the built-in video viewer, which started showing the streaming content almost immediately.

She noted that a full road map going forward is in the plans, with additional content partners, site features and exclusive offers are coming.

Banner ads and other online promotional material are placed throughout the portal interface, although a full screen and a ‘dim the lights’ mode are available to allow more focussed attention on the actual requested content.

Commercial programs are aired with breaks intact, although at the start of service, only one commercial will run in the break. The ads cannot be skipped or fast forward, although Butteriss noted that viewers can return to a program to pick up where they left off without having to watch all the show (or the commercials) again.

Depending on the content partner and the outcome of rights negotiations, the content model is ad supported for now, but that could change going forward, Purdy noted.

Two levels, or profiles, for content delivery are supported on the site at present, Butteriss and Senior Technical Manager Dennis Kuzmar noted. A standard definition service delivers decent quality video at 480 Kbits, while a higher quality profile delivers video at one Mbit.

Butteriss said that the term "'high definition' is used and abused term", but allowed that plans at the Rogers portal is to get service speeds up to 2 or 2.5Mbits per second.

Of course, a customer's Internet usage rates will be affected by the streaming of high quality TV content, so usage meters are now or soon to be part of the service. Customers with Internet usage caps, or customers who want concurrent access to the service across multiple computers, can be monitored and informed of usage levels.

Speaking to recent reports of Rogers Communications partnering with content creation companies, Purdy said that the site would not “tie up” content, explaining that while exclusive content was not planned, the partnership between Rogers and Vuguru, for example, would make its own decisions about providing its content.

However, content on the portal will be greater than that available over the air in some cases. Purdy described how DVD style extras can be added to the portal, and noted that some conventional over the air TV shows are edited for time and audience sensitivity. Such restrictions may not be necessary online, he said, with strong parental controls and online content warnings.

WSJ: Comcast Sees More Videos On-Demand In NBC Universal (http://online.wsj.com/article/BT-CO-20091124-713484.html)

NEW YORK (Dow Jones)--Part of Comcast Corp.'s (CMCSA) desire to take control of NBC Universal comes from its appetite for film content from Universal Studios to bolster its video on-demand offerings.

By gaining control of the film library of a major Hollywood studio, the nation's largest cable services provider hopes to build VOD into a real growth engine for the entertainment business that could ultimately replace the DVD. Still, it's far from clear that the acquisition of Universal Studios would immediately help Comcast boost its VOD business.

Just as the music business has suffered from the decline of CD sales and the publishing business has suffered from the decline of newspaper and magazine sales, the movie business is being squeezed in the digital age by a slowdown in its most profitable business: DVD retailing.

Hollywood views VOD--movie rentals that cable subscribers can select on their TV without leaving their couch--as one potential savior. But studios have been slow to embrace the business for fear of adding to the decline in DVD sales and running afoul of key retailers, like Wal-Mart Stores Inc. (WMT), which makes up nearly a third of all DVD retail sales in the U.S. and is known to be a demanding partner.

As the cable industry's leader in VOD, Comcast sees an opportunity developing now to push studios into its corner. That's part of its motivation in negotiating with General Electric Corp. (GE) about taking a majority stake in NBC Universal, according to people familiar with the matter. A deal is expected in the coming days or weeks.

"The margins that movie studios make on a rental from VOD are much better than the margins they make through" Blockbuster Inc. (BBI) or Netflix Inc. (NFLX), "so it has always been a riddle as to why the studios haven't been quicker to embrace it," said Craig Moffett, analyst with Sanford C. Bernstein & Co. "The prospects for making progress on this issue now are much better than they used to be."

By controlling Universal, Comcast could use access to its blockbuster film slate to experiment with VOD delivery and inspire other studios to follow suit. Options include moving up the VOD release date on some films ahead of their DVD release, and charging a higher price point to boost profits.

Representatives for major film studios, including Universal, declined to comment for this story. However, several industry participants are skeptical that Comcast would make much headway on VOD as a result of the acquisition, pointing to other false starts.

The combination of Time Warner Inc. (TWX), owner of Warner Bros. Entertainment, and Time Warner Cable Inc. (TWC) had little impact on the VOD business and was recently abandoned. Likewise, News Corp. (NWS, NWSA), owner of this newswire as well as 20th Century Fox films, owned a majority of satellite TV provider DirecTV (DTV), but wound up divesting the stake.

In 2005, Comcast and a group of other firms paid $5 billion to acquire Metro-Goldwyn-Mayer Inc., the film studio that owns the James Bond film franchise. Comcast has since written off its 20% stake in that venture.

"The question now becomes why, if building up the VOD business is in everyone's mutual interest, does it take a $30 billion deal from Comcast to make it happen?" asks Moffett.

Still, there are signs that studios are embracing the shift away from DVDs. The film industry is increasingly willing to release films on VOD at the same time they release them as a DVD in stores. Historically, studios have held back films on VOD to avoid hurting DVD sales, but that appears to be changing.

In 2007, Comcast offered nine films on VOD at the same time they were released on DVD. In 2008, that number climbed to 35. It totaled 68 through the first nine months of this year, and the company expects it to go over 100 by year-end. Meanwhile, Comcast is averaging over 350 million VOD views a month this year, up from 300 million last year and 250 million in 2007.

"As they see the DVD business change and decline, the studios are looking to VOD and electronic sell-through and other non-physical ways to distribute movies with a completely different mindset," said Comcast Chief Executive Brian Roberts on a recent conference call.

Meanwhile, studios are still wary of sharing revenue with pay-TV providers at a time when online distribution has enabled anyone to reach consumers directly, but the movie download business has so far been dominated by Apple Inc.'s (AAPL) iTunes service.

Tesco starts selling VirtualDVD movies (http://news.google.com/news/search?aq=f&pz=1&cf=all&ned=us&hl=en&q=tesco+dvd)

Customers who buy select movies from Tesco will also get a free digital copy of their film that also includes DVD-style extras.

Customers who buy Harry Potter and the Half-Blood Prince or The Hangover on DVD from Tesco.com or at their local store will get a code that allows them to download a digital copy of the film for free. The digital copy can be played on any Windows PC or Intel-based Mac that has Microsoft's Silverlight video playback software installed.

It includes the special features you'd expect to find on the DVD, including menus, chapter breaks, alternate audio tracks and subtitles. Your computer must be connected to the internet so it can check-in with an authorisation server every time you want to watch your digital copy.

Oddly, customers who buy or rent the films from Tesco's online download store won't get these special features. Tesco's reliance on Microsoft Silverlight playback software also means the digital copies can't currently be played on mobile devices, such as iPods or Windows Mobile smartphones.

At the moment, Tesco has only secured a deal with Warner Bros to distribute that studio's films as VirtualDVDs - none of the other major Hollywood studios are currently involved which limits the selection of films that could be available as VirtualDVDs.

Tesco's VirtualDVD isn't the first initiative to bundle a digital copy of a film with a DVD. Windows Mobile and iPod-compatible digital copies are currently available with several DVD and Blu-ray movies, mostly titles from Twentieth Century Fox. Apple's iTunes also currently sells movies for download with DVD-style extras, although these can only be played on a computer with iTunes installed or on the AppleTV media streamer.

Tesco hasn't announced when other films will be available as VirtualDVDs.

Boxee Unveils Public Beta, ‘Boxee Box’ Hardware (http://www.wired.com/epicenter/2009/12/boxee-unveils-public-beta-boxee-box-hardware/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+wired%2Findex+%28Wired%3A+Index+3+%28To p+Stories+2%29%29)

Monday night’s hottest event for geeks may not have taken place in San Francisco, Silicon Valley or even Manhattan. Internet-video-on-TV service Boxee packed a capacity crowd into Brooklyn’s Music Hall of Williamsburg to demonstrate its new public beta and announce early specs of Boxee Box, its first hardware device. (The free, open source Boxee software runs on just about any computer that’s connected to the internet and a screen.)

First, here are the goods on the new beta version of the Boxee software, which launches to the general public over the next four weeks and goes fully public in January.

Boxee Software

Using a simple menu system, you can still browse by content partner (Netflix, Major League Baseball, Wired and others, but not Hulu) and play music and videos from the service or your computer. The friend feed, now on the left of the screen, draws recommendations from Boxee friends. Boxee founder Avner Ronen said the service will soon add suggestions from Twitter and Facebook friends.

Featured videos occupy the center of the screen, but Ronen said, “we’re not getting paid [to promote certain things there] — yet.” A new play queue lets users can send any video they encounter on the service or within any of its partner apps to a single list — a crucial addition, given the growing number of partners. Users can also add content to the queue as they surf around the web using a new Boxee bookmarklet.

He also touted the new search feature, which lets users find videos on Boxee and networked hard drives from a single search box, although global music searches (Last.fm and Pandora) are still in the works. In response to customer feedback, every screen on the service now includes a direct way to get back to whatever’s currently playing. In some cases, that means presenting a “now playing” icon on content listing pages alongside programming.

Boxee Box

The above software tweaks are important to geeks with a spare computer to put next to their televisions and iPhones to use as remote controls, but what about people who want dedicated hardware to handle the job? Boxee did not demonstrate a working unit of the upcoming Boxee Box, which Ronen called “the only open source set-top box.” D-Link manufactured the innards and Astro Design (XBox, Nike, Alienware) came up with the “submerged cube” look.

The Boxee Box will cost around $200 with a nice-looking RF remote that can be used “anywhere in the house.” The device includes Wi-Fi, Ethernet and outputs for HDMI (the only video output), optical audio, analog stereo audio, as well as two USB slots the company envisions being used to add a webcam, external hard drive or antenna for receiving over-the-air programming. It comes with a simple multi-directional remote.

Boxee plans to demonstrate the Boxee Box at the Consumer Electronics Show in Las Vegas in January and sell it in stores during the second quarter of 2010.

http://www.ehomeupgrade.com/wordpress/wp-content/uploads/boxee_box_by_dlink.jpg

http://www.ehomeupgrade.com/wordpress/wp-content/uploads/boxee_box_rear_view.jpg

Includes 2 USB ports and an SD card slot.

Broadcom Corp. Dec. 14 said its embedded technology now allows wireless Roku media players to operate 50% further from Internet connections within the home.

Roku Inc. in October unveiled two streaming media players with built-in Wi-Fi, including a high-definition model, priced at $79.

The Saratoga, Calif.-based company in 2008 cut its teeth with the launch of a player that could stream Netflix movies from the Internet to the television.

The Roku player also affords subscribers access to out-of-market professional baseball (MLB.TV) and movies and TV shows on Amazon Video on Demand, among other content.

Irvine, Calif.-based Broadcom’s BCM4323 802.11n technology allows the Roku HD-XR player to be placed anywhere within a 3,000 square-foot home (previously 2,000 square-foot), thereby providing customers with more flexibility when installing their media player and connecting wirelessly to their broadband connection.

http://www.homemediamagazine.com/vod/broadcom-improves-roku-streaming-17859

UPDATE 1-Comcast rolls out Web TV service nationally (http://www.reuters.com/article/idUSN1522915920091215?type=marketsNews)

* New service will be called Fancast XFINITY TV

* Launched with an extra 2,000 hours of content

* Plans for trial service with mobile devices next year

NEW YORK, Dec 15 (Reuters) - Comcast Corp (CMCSA.O) said on Tuesday it has rolled out on-demand service to its paying video and Internet subscribers, allowing them to watch some of their favorite shows online.

The new service will be called Fancast XFINITY TV, and is the largest iteration of a cable industry initiative called TV Everywhere. The cable TV programmers like Time Warner Inc (TWX.N) and Viacom Inc (VIAb.N) are working with pay-TV providers like Comcast and satellite TV operators to offer their subscribers Web access to some popular shows whenever they want.

TV Everywhere is a drive to pre-empt the cable TV business model being undermined by the availability of free programming on the Web on services like Hulu, which is jointly owned by News Corp (NWSA.O), NBC Universal and Walt Disney Co (DIS.N).

Comcast said Xfinity will be available at home but also "on-the-go" when the user signs in via laptop though there are plans to eventually extend it to other mobile devices next year.

Xfinity has launched with an extra 2,000 hours of content from more than 30 cable network partners like Time Warner's HBO and Cinemax, Liberty Media's (LSTZA.O) Starz, and BBC America. In a demo, executives showed that the new site features complete seasons of popular shows like "The Sopranos" and "Big Love."

Sonic Solutions’ Roxio CinemaNow will start offering its film downloads in Divx on Thursday, marking the highest-profile U.S. digital service partner yet for the digital video format.

Currently, the Divx format is compatible across 200 million hardware devices worldwide, spanning numerous Web-enabled TVs, Blu-ray Disc players, the PlayStation 3 and Android phones. Divx’s current hardware reach is vast. But up until this point, the main U.S. download provider of Divx-compatible full-length films was Web site Film Fresh.

Now with its Sonic Solutions partnership, Divx will gain a large download toehold in the myriad platforms where CinemaNow is available, including Blockbuster’s Video On Demand service as well as within multiple embedded Blu-ray players and other devices.

“Divx has long been the leader in the development and deployment of exceptional digital video technology for consumers,” said Dave Habiger, president/CEO for Sonic Solutions. “With millions of Divx-enabled devices shipped into the market and strong consumer interest in the format, we look forward to working with Divx to enhance our Roxio CinemaNow entertainment platform and the digital home experience for consumers.”

The Divx format has been gaining traction internationally. Warner Home Video has been releasing many of its Blu-ray discs in France with Divx-compatible digital copy. Additionally, Paramount Home Entertainment recently offered Star Trek and Transformers: Revenge of the Fallen as Divx files within separate USB drives in the U.K. market.

http://www.videobusiness.com/article/CA6711945.html

Symwave & Xona Media To Unveil USB 3.0 Movie Kiosk At CES (http://www.i4u.com/article29429.html)

There are tons of those little red-box movie kiosks sitting around my city. Pretty much every major grocery store, gas station, and supermarket has one out front. In terms of location and availability, they're very convenient. Despite that fact, I haven't used one in years. The DVDs you rent frequently end up damaged or unplayable and returning them is as much of a hassle as sending a movie back to the rental place.

Thankfully, Symwave and Xona Media have invented a better way. They've created the MK3 DVD+Digital kiosk, and they'll be showing it off next year at CES 2010. This kiosk uses USB 3.0 technology to deliver full movie downloads to customers in less than 10 seconds. MK3 kiosks will be fast and will carry an almost unlimited selection of films, which puts them about three heads above the Red Box in my book. If you don't have a USB 3.0 capable drive (and who does right now?) your old 2.0 stuff will still work with the MK3. Using it is still going to be faster and more convenient than any other movie renting experience. Plus, when you're done with the film, it just gets deleted from your hard drive. You never have to worry about returns. This kiosk will get shown off properly at CES 2010. We can expect to learn more about when these bad boys will come to a supermarket near you then. CES 2010 will start on 7th of January 2010 and lasts until 10th. Of course CES news are already pouring in. Read them in our CES 2010 section.

http://static.i4u.com/images/2009/mk3moviekiosk.jpg

Digital Entertainment Content Ecosystem (DECE) Announces Key Milestones (http://soa.sys-con.com/node/1233744)

Today the Digital Entertainment Content Ecosystem LLC (DECE LLC), www.decellc.com, a coalition with support from every industry involved in digital entertainment, announced it has reached key milestones toward establishing the first open market for digital content distribution. In addition, DECE announced that 21 companies have joined the group which now includes 48 members across entertainment, software, hardware, retail, infrastructure and delivery.

The milestones announced today include:

•Agreement on a Common File Format, an open specification for digital entertainment, that will be used by all participating content providers, services and device manufacturers

•Vendor selection for and role of the Digital Rights Locker, a cloud-based authentication service and account management hub that allows consumers rights access to their digital entertainment

•Approval of five Digital Rights Management (DRM) solutions that will be DECE-compatible

Full technical specifications will be available in the first half of 2010.

Common File Format

DECE has agreed on a Common File Format, an industry first in digital distribution. An open specification for digital entertainment, like DVD or Blu-ray, the Common File Format may be licensed by any company to create a DECE consumer offering. Since this format will play on any service or device built to DECE specifications – whether via Internet, Mobile, Cable or IPTV, etc. – it will make “Buy Once, Play Anywhere” a reality.

The Common File Format optimizes the digital entertainment supply chain, benefiting content providers, Content Delivery Networks (CDNs) and retailers. Content providers only need to encode and encrypt one file type in portable, standard definition and high definition for multiple vendors. CDNs will not have to store different file types to accommodate retailers’ varying needs. Retailers can efficiently deliver content to devices from different manufacturers.

Digital Rights Locker

DECE has selected Neustar, Inc. (NYSE:NSR) as the vendor for the Digital Rights Locker, a cloud-based authentication service and account management hub that allows consumers rights access to their digital entertainment. It will authenticate rights to view content from multiple services, with multiple devices as well as manage content and registration of devices in consumer accounts. DECE will provide an open Application Programming Interface (API) that allows any Web-enabled storefront, service or device to integrate access to the Digital Rights Locker into its own consumer offering.

Approved DRMs

DECE has approved five DRMs that will be compatible with the Common File Format – Adobe® Flash® Access, CMLA-OMA V2, The Marlin DRM Open Standard, Microsoft PlayReady® and Widevine®. Compatibility with multiple DRMs will ensure that content can be played back via streaming or download on a wide variety of services and devices.

New Members

In 2009, 21 companies joined DECE, including: Adobe, Ascent Media Group, Cable Labs, Catch Media, Cox Communications, DivX, DTS, Extend Media, Irdeto, Liberty Global, Motorola, Nagravision, Netflix, Neustar, Nokia, Rovi, Secure Path, SwitchNAP, Tesco, Thomson and Zoran. These companies join DECE’s original members which include world leaders across a wide range of industries.

“The digital entertainment marketplace is on the cusp of a new era of rapid growth,” said Mitch Singer, President of DECE. “The key to unlocking this potential is giving consumers the 'Buy Once, Play Anywhere’ experience they want. That’s the goal of DECE and one we’re making rapid progress toward today.”

NY Times Article on the same subject.

Trying to Add Portability to Movie Files (http://www.nytimes.com/2010/01/04/technology/04video.html)

It is easy to take a DVD to a friend’s house and watch it on his TV. But things are more complicated when digital video downloads are involved. A movie file bought from Blockbuster.com will not work on a Sony HDTV, for example, and videos from iTunes work only on devices with Apple software.

At the Consumer Electronics Show, a big high-tech gathering that will begin Wednesday in Las Vegas, Hollywood studios and consumer electronics makers plan to lay out some steps they are taking to simplify this digital future — and perhaps stem the worrying decline in home entertainment sales.

Hollywood and its high-tech partners are deeply concerned that their customers will rebel against some of the limitations taking shape as video moves away from physical discs.

Consumers, the industry believes, could balk at buying digital movies and TV shows until they can bring their collections with them wherever they go — by and large the same freedom people have with DVDs.

In the last year and a half, a broad alliance of high-tech companies and Hollywood studios has been trying to address this problem through an organization called the Digital Entertainment Content Ecosystem, or DECE. Five of the six major Hollywood studios (Warner Brothers, NBC Universal, Sony, Paramount and Fox, but not Walt Disney) are involved, with Microsoft, Cisco Systems, Comcast, Intel and Best Buy.

The group is setting out to create a common digital standard that would let consumers buy or rent a digital video once and then play it on any device. It might sound technical, but it could be crucial to persuading consumers to buy all the splashy new Internet-connected gear that tech companies will demonstrate at C.E.S., like HDTVs and set-top boxes that can download TV shows and films.

Under the proposed system, proof of digital purchases would be stored online in a so-called rights locker, and consumers would be permitted to play the movies they bought or rented on any DECE-compatible device.

So, for example, business travelers might find that their hotel room television could tap into their personal movie collections. Consumers could buy Blu-ray discs and have digital copies of those films accessible from all of their devices, even their mobile phones. And a PC maker could customize a new laptop for buyers by loading it with all their movies and shows — and eventually even their video games and e-books.

These advances may not be all that far off. On Monday, the digital content organization plans to announce several moves that signal it is ready for companies to start building devices and services with the technology this year. Industry observers expected such an announcement last year.

The group is announcing that it has adopted a new file format that, like the DVD, will allow any company to create a compatible device or digital video store. It is also selecting Neustar, a company based in Sterling, Va., to create the online hub that will store records of people’s digital purchases, with their permission.

The group is also announcing 21 new members, pushing the effort even further toward cross-industry unity. The new companies include consumer device makers like Samsung Electronics, Nokia and Motorola, entertainment retailers like Netflix and the European chain Tesco, and the cable companies Cox Communications and Liberty Global.

Disney is still a holdout. It is advocating a similar plan called KeyChest, which analysts say it may introduce working with Apple. A Disney spokesman said the company would give an early look at its rival technology at C.E.S.

The DECE says that it is further along and that the technical specifications of its system will be available to other companies in the next few months. Devices and services could be available to consumers as soon as early next year.

“There were many skeptics out there who believed that with so many companies, we could never achieve anything,” said Mitch Singer, the president of the DECE and chief technology officer of Sony Pictures Entertainment. “We’ve actually achieved almost everything.”

But the effort still has a long way to go before it can claim anything like success. The proof will be whether it revives home entertainment sales by getting consumers excited about the new freedoms of the digital world.

Hollywood needs consumers to buy more digital content. DVD and Blu-ray revenues contribute significantly to Hollywood’s bottom line, but spending on those discs is dropping sharply. It declined 3.2 percent to $4 billion in the third quarter of last year. Digital sales were up nearly 20 percent in the quarter, but amounted to a relatively paltry $420 million.

And movie studios can only guess how much revenue is lost to piracy, which they say tends to grow as the speed of Internet access increases.

Hollywood also wants to avoid having a single company like Apple enticing people to buy only from its own closed digital system, and ending up with an inordinate degree of control over matters like pricing. Movie executives shudder at the power Apple accumulated over the music labels with iTunes and the influence Amazon appears to be gathering over publishers with e-books.

“The possibility is there for a single player to completely dominate the economics,” said Bill Rosenblatt, president of GiantSteps Media Technology Strategies, a consulting firm.

Hollywood “runs the risk of being held up and surpassed by powerful entities going it alone,” he said, adding that Amazon showed signs of doing just that with its introduction last month of Disc+ On Demand. That service lets consumers who buy certain DVDs and Blu-ray discs view the same titles on demand at no additional cost.

There is also the possibility that the DECE is making a flawed bet on the direction of technology and emerging consumer habits. Its system is primarily aimed at getting people to buy and own digital copies of films, in the same way people collected VHS cassettes and DVDs.

But an increasing number of Web services allow people to more cheaply stream movies and shows without ever permanently storing a copy. The DECE says its technology can accommodate streaming — allowing members of a family, for example, to watch the same movie at the same time in different locations. But it is not clear that such a rights scheme is necessary in a purely on-demand, watch-it-once world.

“The market desperately needs this, but in some senses it is already moving past it toward rental of content over ownership,” said Danielle Levitas, an analyst at IDC. Ms. Levitas also said DECE’s progress had been slower than she expected: “I wanted to see devices in the market already announced by C.E.S.”

Mr. Singer acknowledges that “every single company knows that time is not their friend right now.” But he says that to truly spark the digital media revolution, the industry must embed its technology so deeply into digital services and devices that customers will not even notice it — so that getting access to their digital content is as easy as bringing a DVD to a friend’s house.

“Consumers shouldn’t have to know what’s inside,” he said. “They should just know it will play.”

CinemaNow 2.0: 3D, 1080p, Android & WinMo get a taste of online movie distribution (http://www.engadget.com/2010/01/04/cinemanow-2-0-3d-1080p-android-and-winmo-get-a-taste-of-online/)

Thought digital delivery would get left behind in the jump to 3D? Roxio's CinemaNow 2.0 platform is ready to build on the success of its predecessor -- already embedded in many devices and powering the online stores for Blockbuster, Best Buy and Zip.ca -- and flip the switch bringing streamed or downloaded 1080p or 3D, plus the ability to add additional background info on each movie or previously disc-exclusive extras like multiple audio tracks, subtitles and more. Also new for 2.0 are plans for access on Android and Windows Mobile devices. We're still thinking a combo of lower prices, all you can eat subscriptions or a disc tie-in is the logical next step, but we'll wait for a CES demo to ask about that, and whether the new features will be backwards compatible on old hardware.

Kiosk company MOD Systems, which began testing the first digital movie kiosks with major studio content in early November, announced today that it will now support playback of those downloaded movies on virtually all PCs and in the future on Blu-ray Disc players, TVs and other consumer electronic devices with SD card slots.

The kiosks from MOD and partner NCR offer movie downloads from Warner Bros. and Paramount Pictures to SD cards, the same cards used in digital cameras to store photos.

Up to now, those downloads could only be played back on the TV through an MOD SD card set-top device, called GreenPlay.

With MOD now supporting playback on PCs, consumers who have computers with an SD card drive can slip an SD card into the slot and immediately playback an MOD download. No additional software is needed for playback. For PCs without an SD card slot, MOD will sell a SD-to-USB converter, which can be plugged into a PCs’ USB drive for immediate playback of downloaded films.

Retailers are expected to sell the cards and the converters by the kiosks. Pricing will vary by retailer, but MOD chairman and CEO Anthony Bay said “the intention is to make it as inexpensive as possible.”

http://www.videobusiness.com/article/CA6713754.html

PlayStation Network Video Store Coming to PC, Bravia TVs, Blu-Ray Players Next Month (http://www.shacknews.com/onearticle.x/61850)

The PlayStation Network video store will soon expand to other household devices, Sony has announced at CES, starting with PCs, Blu-Ray players and Bravia-model televisions.

"Hundreds of movies from all major studios will be available to be streamed in standard definition and high definition directly to Internet-enabled Bravia and Blu-Ray devices in the United States starting next month," revealed Sony Networked Products president Kaz Hirai during the company's keynote speech.

"This premium video service will also be available on... any Windows-enabled PCs also starting next month. On this platform, standard definition movies can be downloaded and viewed on your PC and the service will be available initially in six countries."

The other initial five countries should be Japan, the United Kingdom, Germany, France, and Spain, the only other countries currently with PSN Store video content--though Hirai noted Sony has "plans to add more countries later this year."

"It's time to harness the power of the PlayStation Network infrastructure and leverage the Network experience across new product platforms," said Hirai, explaining that the new video service will use existing PSN accounts and Wallets. He also revealed plans to "create a common user experience across all of our product lines."

NetFlix Hooks Up With Blu-Ray, HDTV OEMs at CES (http://www.internetnews.com/hardware/article.php/3857356/NetFlix+Hooks+Up+With+BluRay+HDTV+OEMs+at+CES.htm)

LAS VEGAS -- Netflix on Thursday announced a series of distribution deals with five major electronics manufacturers ensure the next generation of Blu-ray disc players and HDTVs will be embedded with its streaming service for movies and TV episodes.

Netflix made the pacts official here during the 2010 Consumer Electronics Show. Now Netflix's streaming service can be found on more than 100 different consumer electronics devices including Microsoft's Xbox and TVs and gaming consules made by the likes of LG, Samsung, Sony and TiVo.

The quintet of new partners includes Funai, which distributes the Philips, Magnavox, Sylvania and Emerson brands in the United States; Panasonic; Sanyo; Sharp and Toshiba.

"Ever since Netflix began instantly streaming movies and TV episodes to personal computers in January 2007 we've said we want to be ubiquitous on whatever device gets the Internet to the TV," said Netflix CEO Reed Hastings. "The important companies and brands we've announced today join a roster of world-class CE companies that have partnered with Netflix."

Netflix claims to have more than 11 million subscribers, most of whom are paying $8.99 a month for an unlimited supply of movies and TV shows delivered either through the mail or via an electronic devices embedded with its streaming service.

Video: Mod Systems demonstrates SD Card kiosk.

http://www.youtube.com/watch?v=Pk671U9aXyo&feature=player_embedded

Neustar gets deal to work on movie download anti-piracy system (http://www.washingtonpost.com/wp-dyn/content/article/2010/01/13/AR2010011304311.html)

A Sterling-based company has been tapped by a consortium of Hollywood studios and technology companies to manage a database that would limit piracy while giving consumers the ability to watch downloaded video content on a variety of gadgets and devices.

The Digital Entertainment Content Ecosystem announced this month that Neustar, formerly a division of Lockheed Martin, will operate an upcoming "digital rights locker" system, designed to let users who legally purchase movies online view that content on smartphones, laptops or the living room TV.

The DECE technology, which is in the design stage, aims to give consumers more flexibility with the content they purchase while still employing digital rights management tools designed to discourage piracy. "Buy Once, Play Anywhere" is the marketing pitch; a launch date has not been announced.

The technology is meant to address a market in which consumers are increasingly expecting their electronic devices to connect with multimedia services. Nintendo, for example, announced on Wednesday that it will soon be possible for Wii owners with a Netflix subscription to view movies streamed via the Web to the game console.

Neustar was created as a result of the Telecommunications Act of 1996, when consumers gained the right to take their telephone number with them if they switched carriers. The firm manages the central directory of area codes and phone numbers that make calls made across competing service providers possible.

"This is actually right in our sweet spot," Lisa Hook, Neustar's president and chief operating officer, said of the DECE deal. "Our core business is managing complex ecosystems around portability."

Terms of the deal were not disclosed. The company is in a quiet period that prohibits it from disclosing details about the new business, but at least one analyst said she thinks the deal will not contribute greatly to the company's bottom line.

Katherine Egbert, an industry analyst with Jefferies & Co., downgraded her rating of the company from "hold" to "underperform" last year, and news of the DECE deal wasn't enough for her to reconsider her rating. "There's probably not a lot of money in it, is my guess," she said.

Most of Neustar's revenues are fixed by its number portability contract, she said -- and the terms of that contract were revised in a way that was slightly unfavorable to the company last year.

For the third quarter, Neustar reported revenue of $117.2 million, a 5 percent decrease from $123.8 million a year earlier. Net income totaled $24.5 million, compared with $28.4 million a year earlier. Still, in the past year, Neustar's share price has climbed from under $20 to $24.

DECE counts most of the major movie studios as members, with the exception of Disney. Many powerful tech and retail players, such as Microsoft and Best Buy, are members -- though Apple, the company with the most success in the area of selling downloadable content, is not.

Mitch Singer, president of DECE, and Sony Pictures Entertainment's chief technology officer, said that downloaded movie content hasn't seen the "hockey stick growth" pattern generated by DVDs in their early days because consumers are waiting on a technology that simplifies the process. Currently, consumers are faced with a confusing market in which content can be hemmed in by proprietary tech standards, and a movie bought from one company's online store might not be compatible with a smartphone built by another.

"On the surface, it sounds fantastic," said Danielle Levitas, an analyst with IDC, of the DECE technology. But Levitas also wonders if consumers have already gotten used to devices that stream video content and don't necessarily require the type of ownership that Neustar's database would track. "I think the market is starting to move past ownership and is much more focused on rental now," she said. "There's a cultural shift around getting stuff 'on demand' and watching it once."

While Singer acknowledged that "time is not our friend" as DECE gets ready for the market, he does not count Neustar as one of his worries.

"We're very happy with the selection," he said. "Neustar came with a very solid team, both from a technical standpoint and a management standpoint."

In case you haven't heard (and I can't imagine how you haven't), Apple iPad launched today.

http://www.apple.com/ipad/specs/

Display

* 9.7-inch (diagonal) LED-backlit glossy widescreen Multi-Touch display with IPS technology
* 1024-by-768-pixel resolution at 132 pixels per inch (ppi)
* Fingerprint-resistant oleophobic coating
* Support for display of multiple languages and characters simultaneously

Wireless and Cellular
Wi-Fi model

* Wi-Fi (802.11 a/b/g/n)
* Bluetooth 2.1 + EDR technology

Wi-Fi + 3G model

* UMTS/HSDPA (850, 1900, 2100 MHz)
* GSM/EDGE (850, 900,1800, 1900 MHz)
* Data only2
* Wi-Fi (802.11 a/b/g/n)
* Bluetooth 2.1 + EDR technology

Audio Playback

* Frequency response: 20Hz to 20,000Hz
* Audio formats supported: AAC (16 to 320 Kbps), Protected AAC (from iTunes Store), MP3 (16 to 320 Kbps), MP3 VBR, Audible (formats 2, 3, and 4), Apple Lossless, AIFF, and WAV
* User-configurable maximum volume limit

TV and Video

* Support for 1024 x 768 with Dock Connector to VGA adapter; 576p and 480p with Apple Composite A/V Cable, 576i and 480i with Apple Composite A/V Cable
* H.264 video up to 720p, 30 frames per second, Main Profile level 3.1 with AAC-LC audio up to 160 Kbps, 48kHz, stereo audio in .m4v, .mp4, and .mov file formats; MPEG-4 video, up to 2.5 Mbps, 640 by 480 pixels, 30 frames per second, Simple Profile with AAC-LC audio up to 160 Kbps, 48kHz, stereo audio in .m4v, .mp4, and .mov file formats

http://images.apple.com/ipad/design/images/battery_20100127.jpg

http://images.apple.com/ipad/design/images/wireless_20100127.jpg

In case you haven't heard (and I can't imagine how you haven't), Apple iPad launched today.
...

They appear to be showing that Star Trek movie cropped in a 4:3 aspect ratio.

- Tom

They appear to be showing that Star Trek movie cropped in a 4:3 aspect ratio.

- TomYes - I was wondering why on earth they designed it at 4:3 instead of 16:9, but wasn't certain at the time of my post. That is just ridiculous.

Gizmodo has the counterpoint...

8 Things That Suck About the iPad (http://gizmodo.com/5458382/8-things-that-suck-about-the-ipad)

A lot of people at Gizmodo are psyched about the iPad. Not me! My god, am I underwhelmed by it. It has some absolutely backbreaking failures that will make buying one the last thing I would want to do. Updated

Big, Ugly Bezel
Have you seen the bezel on this thing?! It's huge! I know you don't want to accidentally input a command when your thumb is holding it, but come on.

No Multitasking
This is a backbreaker. If this is supposed to be a replacement for netbooks, how can it possibly not have multitasking? Are you saying I can't listen to Pandora while writing a document? I can't have my Twitter app open at the same time as my browser? I can't have AIM open at the same time as my email? Are you kidding me? This alone guarantees that I will not buy this product.

No Cameras
No front facing camera is one thing. But no back facing camera either? Why the hell not? I can't imagine what the downside was for including at least one camera. Could this thing not handle video iChat?

Touch Keyboard
So much for Apple revolutionizing tablet inputs; this is the same big, ugly touchscreen keyboard we've seen on other tablets, and unless you're lying on the couch with your knees propping it up, it'll be awkward to use.

No HDMI Out
Want to watch those nice HD videos you downloaded from iTunes on your TV? Too damned bad! If you were truly loyal, you'd just buy an AppleTV already.

The Name iPad
Get ready for Maxi pad jokes, and lots of 'em!

No Flash
No Flash is annoying but not a dealbreaker on the iPhone and iPod Touch. On something that's supposed to be closer to a netbook or laptop? It will leave huge, gaping holes in websites. I hope you don't care about streaming video! God knows not many casual internet users do. Oh wait, nevermind, they all do.

Adapters, Adapters, Adapters
So much for those smooth lines. If you want to plug anything into this, such as a digital camera, you need all sorts of ugly adapters. You need an adapter for USB for god's sake.

Update: Why stop at 8? Here are more things we are discovering that suck about the iPad.

It's Not Widescreen
Widescreen movies look lousy on this thing thanks to its 4:3 screen, according to Blam, who checked out some of Star Trek on one. It's like owning a 4:3 TV all over again!

Doesn't Support T-Mobile 3G
Sure, it's "unlocked." But it won't work on T-Mobile, and it uses microSIMs that literally no one else uses.

A Closed App Ecosystem
The iPad only runs apps from the App Store. The same App Store that is notorious for banning apps for no real reason, such as Google Voice. Sure, netbooks might not have touchscreens, but you can install whatever software you'd like on them. Want to run a different browser on your iPad? Too bad!No HDMI either. An on-board SD slot would have been a no-brainer.

What were they thinking?

Yes - I was wondering why on earth they designed it at 4:3 instead of 16:9, but wasn't certain at the time of my post. That is just ridiculous.
...
No HDMI either. An on-board SD slot would have been a no-brainer.

What were they thinking?

Regarding recent MOD Systems news...I guess this hot new Apple device won't be working with MOD due to the SD card slot exclusion:
MOD Systems Announces Playback of Digital Movie and TV Downloads to SD Cards on PCs, Consumer Electronics, and Mobile Devices
http://news.moneycentral.msn.com/ticker/article.aspx?Feed=BW&Date=20100106&ID=10963752&Symbol=NCR

No SD card = no MOD. Not that Apple would promote anything other than iTunes anyway. Though their apparently is a SD adapter for another $30 or so.

Big blow to mobile HD consumption, no? And to MOD? I thought viewing of HD content on mobile devices was the future? What's this 4:3 crap?

Wal-Mart Buys Vudu Movie Download Service (http://www.homemediamagazine.com/wal-mart/wal-mart-buys-vudu-movie-download-service-18521)

Electronic distribution of Hollywood movies took a step toward Main Street when Wal-Mart Stores reportedly acquired struggling movie download service Vudu.

Citing sources associated with the deal, The New York Times Feb. 22 reported that representatives from Bentonville, Ark.-based Wal-Mart and Sunnyvale, Calif.-based Vudu have begun meeting with studios and consumer electronics manufacturers regarding the deal.

A Vudu spokesperson said the former VOD set-top box service had no comment, but the company was working on an official response.

Merger talk was prompted earlier this year after Vudu announced it was moving away from a set-top box and repositioning itself as software app for third-party CE manufacturers, including Internet-based televisions, Blu-ray Disc players and related devices.

“At this point, our future is entirely focused on embedded devices,” Vudu spokesperson David Speiser said in January.

Wal-Mart in 2009 made an aggressive move to establish itself as major CE retailer following the demise of Circuit City, including reaching parity in the fourth quarter with Best Buy, according to analysts.

Best Buy is slated to bow an online content store featuring music and movies compatible with CE hardware this summer.

Independent analyst Rob Enderle said he envisions Wal-Mart using Vudu as a marketing tool to drive in-store traffic toward DVD and Blu-ray Disc, while generating ad-supported incremental streaming revenue.

Enderle believes Wal-Mart could re-create Netflix’s popular streaming service and offer superior content due to its strong studio-supported physical sellthrough business.

“This might make sense depending on how [Wal-Mart] marketed the service to consumers and studios,” Enderle said earlier this year.

Analyst Michael Pachter, with Wedbush Morgan Securities in Los Angeles, remains nonplussed by the scuttlebutt considering Wal-Mart shuttered a movie download service just 10 months after launch in 2007. The retail behemoth’s foray into online DVD rentals met a similar fate; its subscribers re-directed to Netflix.

“I don’t see how Wal-Mart ownership changes anything,” Pachter said. “Vudu is just like any other delivery service on a pay-per-view model, and I don’t see how it is better or different because it’s owned by Wal-Mart.”

PS3 to Get More Movies as Sony Signs Deal With All Six Studios for Movie Streaming (http://seekingalpha.com/article/192862-ps3-to-get-more-movies-as-sony-signs-deal-with-all-six-studios-for-movie-streaming)

Sony (SNE) just announced that 20th Century Fox, Walt Disney Pictures, Paramount Pictures, Sony Pictures Entertainment, Universal Pictures, and Warner Bros have all agreed to allow Sony to stream their movies over the PlayStation Network to users of the PS3. The service, which launched yesterday, is only available in the U.S. but will be expanded to consumers in U.K., France, Germany, and Spain.

The PlayStation Network is the first gaming console to offer high definition movies from all of the major movie studios and consumers will have the option to either buy or rent HD titles. There's no word as to how many titles the studios will make available or how quickly they will be added, but Sony did list 18 new movie releases in the press release from all six studios that are available today.

I've had the chance to jump on my PS3 system and rent some of the movies and the quality looks really good. While I can't tell the bitrates they are encoded at and am waiting for Sony to get back to me with a lot of the technical details, so far, I don't see anything here that consumers won't like. Pricing on the new titles I saw (see below) were $3.99 to rent in SD or $5.99 to rent in HD and $14.99 to own in SD or $19.99 to own in HD. I still think the price to own movies on all devices is too expensive and that most consumers will rent movies anyway and I expect that even rental prices will come down over time.

I'll post more details on the technical side of the streaming offering as soon as I get them from Sony.

'Independent analyst Rob Enderle said he envisions Wal-Mart using Vudu as a marketing tool to drive in-store traffic toward DVD and Blu-ray Disc, while generating ad-supported incremental streaming revenue.

Enderle believes Wal-Mart could re-create Netflix’s popular streaming service and offer superior content due to its strong studio-supported physical sellthrough business.'

good healthy competition :)

Six Questions: MOD Systems’ Anthony Bay (http://www.homemediamagazine.com/kiosk/six-questions-mod-systems-anthony-bay-18743)

HM: With majority owner NCR actively rolling out Blockbuster Express kiosks, will MOD Systems incorporate its technology in these kiosks?

Bay: We will continue to deploy digital kiosks together with NCR. NCR is a shareholder in MOD Systems but not a majority owner. We initiated technical trials in Q4 2009 and commercial deployments will begin in Q2 of this year. We expect to install in multiple retailers this year. Our objective is to test the consumer adoption, use and buy rates in different classes of retail trade.

‘DIGITAL LOCKER’ COULD HELP CABLE GROW ON-DEMAND"]‘DIGITAL LOCKER’ COULD HELP CABLE GROW ON-DEMAND (http://www.multichannel.com/article/450266-VOD_Anywhere.php)

Soon, you may be able to buy a copy of The Hurt Locker from a retailer - and then access it from a "digital locker" through your cable company's video-ondemand service.

The Digital Entertainment Content Ecosystem, a coalition formed a year and a half ago, is establishing standards that would let consumers buy a piece of digital media once, and then play it back on different devices after logging into their account.

“The digital proof-of-purchase is in the cloud,” said Mitch Singer, president of DECE and Sony Pictures Entertainment’s chief technology officer.

STREAMLINING DOWNLOADS

Primarily, the initiative is an effort by movie studios to replace the gaping hole left behind by falling DVD sales. DECE aims to standardize and streamline the digital supply chain for movie downloads, which has been a mish-mash of different formats and proprietary standards.

DECE “has to happen, because you’re talking about the disappearance of a multibillion-dollar business,” said Brian Baker, CEO of content-protection vendor Widevine Technologies, which is a member of the coalition.

But DECE, which counts 48 member companies to date, also could open a door for new valueadded services for cable VOD products, according to industry executives. For example, an MSO could now start selling videos — rather than just renting access to them — which could be accessible on multiple devices through any DECE-enabled affiliate.

“It’s potentially a new business for cable operators,” said Dave Brown, director of strategy and business development for Motorola’s Broadband Home Solutions group. “Now they can be a sales channel for electronic sellthrough.”

A pay TV provider could also charge a monthly premium to allow subscribers to access the content in their personal DECE “locker.”

Already, Comcast, Cox Communications, Liberty Global and CableLabs are members of DECE. Individual operators, though, aren’t ready to talk publicly about where they see the idea headed.

Cox manager of public relations Erin Lambremont said how DECE will play into future VOD offerings has yet to be fully determined, “but suffice it to say we view these type initiatives as additive to and not replacements for VOD.”

For DECE, the next major milestone involves completing its core technical specifications, including media format, as well as getting the centralized digital rights locker up and running.

After evaluating six providers, the coalition selected Sterling, Va.-based Neustar as the vendor for the “digital rights locker,” a network-based authentication service and account management hub that will authenticate users’ right to view content from multiple services and on multiple devices.

Singer is hoping the rights locker from Neustar, which currently operates the directories for telephone-number portability in North America, will be ready to test later in 2010.

So far, DECE has agreed on a common file format and approved five digital rights management technologies for use with its spec: Adobe Systems’ Flash Access, CMLA-OMA V2, the Marlin DRM open standard, Microsoft’s PlayReady and Widevine.

Now, DECE is hammering out the specifics on its media format, which Singer said will be based on MPEG-4 Advanced Video Coding H.264 with 128-bit encryption. “There’s a lot that needs to happen before we get into the market,” Singer said.

HOLDOUTS REMAIN

One sticking point for DECE is that there are two notable holdouts: The Walt Disney Co. and Apple. Disney is developing a competing system, KeyChest, that would perform similar authentication for digital content, and Apple sells songs and videos in proprietary formats through the iTunes Store.

DECE hopes to build critical mass to become the one industry standard accepted by everyone. “The important thing is that this will be cross-retailer, so it will work whether I buy it on Blu-Ray from Best Buy or buy it from any other retailer like CinemaNow or Comcast,” Singer said.

Studios Launch Cable VOD Primer (http://www.homemediamagazine.com/vod/studios-launch-cable-vod-primer-18779)

Hollywood studios and cable operators March 17 launched a public relations campaign aimed at bringing consumer awareness to renting new release video-on-demand (VOD) movies on cable television.

Dubbed “The Video Store Just Moved In,” the $30 million campaign, through the Movies On Demand consortium, over the next 12 weeks will showcase the ease of watching new release movies available on demand the same day as the DVD/Blu-ray Disc releases.

Spearheaded by Warner Bros. Home Entertainment Group, which includes Warner Home Video, the studio in 2006 was the first to offer new releases on VOD, claiming the practice did not adversely affect retail sales while producing greater margins than disc rentals.

Last year eight of the top 10 VOD titles were released day-and-date with DVD, including Bride Wars, Gran Torino, He’s Just Not That Into You and Twilight, the latter the top cable VOD release of 2009, according to Rentrak.

Indeed, cable VOD revenue topped $1.2 billion in 2009, up 20% from $1 billion in 2008, according to industry data.

Lionsgate, in a recent financial call, said it expects to generate $86 million in VOD revenue this year.

Top VOD titles offered early this year include Oscar-winner Precious, The Twilight Saga: New Moon, Ninja Assassin and Pirate Radio. Others include Astro Boy, Bandslam, Did You Hear About the Morgans?, Fantastic Mr. Fox and The Fourth Kind.

“Movies On Demand is a great way for consumers to rent movies, they are reasonably priced, always available, and the number of day-and-date titles continues to increase year over year,” said Kevin Tsujihara, president of Warner Bros Home Entertainment Group.

While VOD has been around for years, widespread adoption of renting new release movies via the cable remote control has lagged as many consumers remain indifferent or unsure about the process. At the same time kiosk vending of lower margin $1-per-day DVD movies skyrocketed to more than $900 million in 2009, up 88% from $486 million in 2008, according to data from The NPD Group and Adams Media Research.

The campaign, through TV, print, Internet ads and a Web site (www.cablevideostore.com), showcases the Movies On Demand new green logo, which is meant to signify the speed and ease of VOD renting.

“We've seen [VOD] rentals hit an all time high this past year, and research shows that it will continue to grow," said Mike Dunn, president, Twentieth Century Fox Home Entertainment Worldwide.

Internet TV Viewing Has Tripled Since 2006 (http://www.homemediamagazine.com/streaming/internet-tv-viewing-has-tripled-2006-18807)

Viewing of complete TV show episodes over the Internet has tripled in the past three years, according to a new report from Knowledge Networks.

Usage of the Internet to watch TV in the 13-54 age group has risen from 8% to 22%, and is up from 12% to 30% among 18- to 34-year-olds. As a result, 6% in the 13-54 group and 9% in the 18-34 group said they plan to or already have reduced or canceled their pay-TV service in the past year.

“The small but notable level of people watching TV programs via the Internet on regular TV sets suggests that the convergence of the two screens for mainstream audiences may finally be on the horizon,” said David Tice, VP and group account director at Knowledge Networks.

Research was conducted in November 2009 among 1,901 Internet users chosen based on a representative sample of the full U.S. population.

The survey also found 7% in the 13-54 group and 11% in the 18 to 34 group have used a TV set to watch streamed or downloaded video.

Netflix: More than half of subscribers tap streaming video (http://news.cnet.com/8301-1023_3-20003137-93.html)

Netflix's transition from a DVD distributor to a streaming content provider hit a notable milestone in the first quarter--55 percent of its nearly 14 million subscribers are now watching movies and TV via the Internet.

To put that streaming media figure into perspective, Netflix said that in the fourth quarter 48 percent of its subscribers watched more than 15 minutes of content. A year ago, 36 percent of subscribers watched streaming movies or TV episodes.

The company delivered the typically strong quarter as it finished the three months ended March 31 with 13,967,000 total subscribers, up 35 percent from a year ago. Netflix reported first-quarter earnings of $32.3 million, or 59 cents a share, on revenue of $493.7 million, up 25 percent from a year ago. Earnings were 5 cents a share better than Wall Street targets. Revenue was in line with estimates.

NCR Brings Digital Entertainment to Airport Travelers with First Major Kiosk Deployment (http://www.marketwatch.com/story/ncr-brings-digital-entertainment-to-airport-travelers-with-first-major-kiosk-deployment-2010-04-21?reflink=MW_news_stmp)

NCR Corporation will install its digital download kiosks at airports across the United States through InMotion Entertainment stores, bringing easy, affordable access to a wide choice of digital movies, television programs and music tracks for the first time to airport travelers on the go.

InMotion Entertainment is the U.S.'s largest airport retailer of electronics and entertainment. Each year, more than 750 million travelers pass by InMotion's 57 stores in 35 airports.

Through kiosks developed in partnership with MOD Systems(R), Inc., NCR will rent and sell entertainment titles to airport travelers who will download the content to portable Secure Digital (SD) memory cards and USB memory sticks. Consumers can use (and reuse) their own SD memory cards to download video titles or purchase one in the InMotion store. Video content can be played on Windows PCs, including laptops, netbooks and tablets, with additional consumer electronics device support planned for later this year. Music tracks can be loaded onto any USB storage device and, eventually, directly to portable MP3 players.

Travelers will be able to download entertainment content from the kiosk in about the same amount of time it takes to buy a magazine or newspaper at an airport news stand. Music downloads take, on average, just a few seconds and movie downloads often take less than two minutes. Up to four kiosks will be installed in each store to accommodate multiple customers at once.

"The modern airport traveler has limited and often inflexible options for entertainment on the go," said Alex Camara, vice president and general manager, NCR Entertainment. "DVDs and CDs cannot be played on many portable devices. Movies and music can be downloaded to portable devices at home, but once travelers leave home, purchase options have been limited. Streaming content often cannot be accessed in air, and never without expensive fees. We are bringing faster and easier entertainment choices to consumers while they are on the go. This new technology -- in partnership with MOD Systems -- brings consumers simple, affordable and flexible access to entertainment."

"The deployment of NCR and MOD Systems' digital download kiosks in InMotion stores will give consumers exciting new entertainment content they have never before had access to outside the home," said Jeremy Smith, president of InMotion Entertainment. "We have big expectations for the potential of digital entertainment kiosks, and we look forward to expanding this program with NCR."

Movie rental and purchase prices from the digital download kiosks will be consistent with online digital downloads and in-store rentals today and will be tested at various price points. For movie rentals, consumers will have 30 days from purchase to watch the movie and 48 hours to watch once they begin.

The NCR and MOD Systems kiosks will offer thousands of new release and catalog movie titles and television episodes from major and independent studios, and hundreds of thousands of MP3 music tracks from all major music labels and several independents. Because they're digital, the video and music titles are never out of stock and rental movies do not need to be returned.

"MOD Systems is excited to bring its partnership with NCR into the consumer market, and reach busy travelers through a relationship with InMotion -- the leader in airport entertainment," said Anthony Bay, chairman and CEO of MOD Systems. "Until now, retailers have not had an opportunity to capture the tremendous business opportunity in digital entertainment. Our solution with NCR gives retailers a slice of the growing digital market while offering the latest content for their customers to enjoy on the devices they travel with everyday."

FCC moves to open television set-top box for Internet, competition (http://voices.washingtonpost.com/posttech/2010/04/fcc_moves_to_open_television_s.html)

The Federal Communications Commission took a tiny step forward on Wednesday toward updating the television set-top box, a move that Chairman Julius Genachowski hopes will eventually stir more competition between providers of paid television and Internet services.

“Consumers want devices that can navigate the universe of video programming from all of these sources and present the choices to them in a simple, integrated way,” Genachowski said in the commission’s meeting Wednesday. “They also want to know that they can buy a device and not have to replace it if they change video providers.”

The FCC voted Wednesday to begin studying ways to achieve that goal, which was part of the agency's national broadband plan. One proposal would require paid television service providers to deliver their signals to a small adapter that could serve as a standard interface for broadband and paid television content. That adapter would connect to a television, computer or other device.

Motorola and Cisco make the vast majority of set-top boxes currently on the market. Cable and satellite providers control those devices by renting them to consumers. Mandating a standardized gateway device would allow consumers to switch pay TV providers without getting a new set top box. And it would permit integrated television service and Internet service on a TV set.

“We think the FCC wants to lay the groundwork for over-the-top video to potentially impose some competitive pressure on pay TV providers in the future,” said analyst Paul Gallant of the Concept Capital research firm. That policy could help Internet TV providers like Netflix, Apple, Google and Amazon, he said.

But the proposal is sure to be met with resistance.

“Cable/telecos/satellite providers are capable of bringing a fair amount of political opposition to the table if they decide this is sufficiently problematic for their pay TV business,” Gallant said.

During Wednesday's FCC meeting, Republican member Robert McDowell cautioned against rules that could hamper progress already seen in the market.

“The idea of accessing the Internet through the TV screen is certainly attractive – so attractive, in fact, that the marketplace already appears to be delivering on that vision without any help from the government,” McDowell said. “A quick Internet search revealed more than a dozen different devices available to consumers who wish to bring some or all of the Internet to their television screens, ranging from specialized web video products and software applications to elaborate home theater PCs and even online gaming consoles.”

April 27, 2010, 12:30 AM EDT
By Todd Shields and Adam Satariano

April 27 (Bloomberg) -- U.S. regulators may use their veto power over Comcast Corp.’s planned purchase of NBC Universal to demand concessions that help Web startups, analysts say.

The Federal Communications Commission extended its review of the deal this month, in part to assess the effect on online video services. The FCC may bar Comcast, the largest U.S. cable service, from interfering with Web video startups such as Roku Inc. and Boxee Inc. or from denying them NBC shows or films.

“Internet programming is just taking hold as this merger comes before the government,” said Paul Gallant, a former FCC aide who is an analyst for Concept Capital’s Washington Research Group. The agency “may consider declaring that Internet TV companies have program access rights” like satellite services.

An April 6 court ruling undermined FCC efforts to regulate the Internet policies of companies such as Comcast, according to Rebecca Arbogast, a Washington-based analyst for Stifel Nicolaus & Co.. That leaves the NBC merger review as a way for the agency to “push policy goals,” she said in an interview.

Sena Fitzmaurice, a Comcast spokeswoman in Washington, declined to comment for this story. Rules that require Philadelphia-based Comcast to sell programs it owns to services such as Dish Network Corp., DirecTV and Time Warner Cable Inc. shouldn’t be extended to Web companies, company officials said in response to questions from a U.S. Senate committee.

Boxee and Roku, both closely held, use the Web to stream movies and shows that viewers watch on demand with PCs or TVs. They need shows and films that generate pay TV revenue of $32 billion a year for studios, according to researcher SNL Kagan, as well as access to broadband networks. They want some of the $121 a month that the average Comcast user pays for TV.

Roku Service

A Roku box, starting at $80, lets Netflix Inc. subscribers stream rented movies from the Web to a TV. Boxee’s free software allows people to view material from YouTube, Comedy Central or MLB.TV on their TVs. To attract more customers, the companies say they need more content.

The FCC will “thoroughly consider all the important issues that have been raised or will be raised” about the Comcast-NBC transaction, Chairman Julius Genachowski said in testimony at a Senate Commerce Committee hearing on March 12. The agency determines whether such mergers are in the public interest and can demand binding conditions. The FCC censured Comcast in 2008 for blocking customers using peer-to-peer software that can be used to share videos. The U.S. Court of Appeals for the District of Columbia Circuit said on April 6 the FCC lacked authority over Comcast’s Web practices in a setback for the agency’s net neutrality agenda.

Netflix Viewers

Netflix, the movie-rental service with 14 million subscribers, said in a January letter to regulators net neutrality rules were needed to prevent Internet service providers such as Comcast from restricting its service.

In an interview last week, Netflix Chief Executive Officer Reed Hastings said the merger was unlikely to affect his company directly.

While the Web lets people choose when and what they want to watch, the government needs to classify it as a distribution platform with the same access to shows as cable and satellite services, said Avner Ronen, CEO of New York-based Boxee.

Studios may be reluctant to upset lucrative relationships with pay TV services, Ronen said.

“There is a real concern among media companies that being more aggressive on the Internet would cause the cable companies to use their muscle,” said Ronen, whose company announced a deal on April 19 to show professional hockey on its service. Roku recently signed a deal for professional basketball.

NBC Accord

Comcast agreed in December to acquire a majority of General Electric Co.’s entertainment division, which includes NBC TV, Universal Pictures and television, and cable channels including USA Network, SyFy and Bravo. The company will pay $6.5 billion in cash and contribute its own cable channels to the business.

“The combined company will have no enhanced ability or incentive to refuse to sell NBCU content,” Comcast and NBC said in a filing with regulators. Withholding programming would cause the new company to lose money without drawing viewers from competitors, they said.

The FCC should ensure Web companies have equal access to licensed material, like a cable operator, and bar Comcast from restricting bandwidth based on how it is being used, said Anthony Wood, CEO of Saratoga, California-based Roku.

Comcast’s purchase of NBC is “an indicator that they are worried about the fact that distribution of content is moving to the Internet,” Wood said. “Their video distribution is at risk. The shift is happening whether they buy NBC or not.”

Boxee Cutoff

In February, NBC Universal head Jeff Zucker was questioned by U.S. lawmakers about Boxee’s loss of access to programs on Hulu.com, the online video site NBC co-owns with Walt Disney Co. and News Corp.

Zucker said Hulu management cut off Boxee because it was “illegally” displaying shows “without any business deal.” In a response on his blog, Ronen said Boxee is a supplier of a browser like Internet Explorer and doesn’t violate copyrights.

Internet operators have the “means and motive” to discriminate against new ventures that might threaten their revenue, Los Gatos, California-based Netflix said in filing on net neutrality. Cable companies can also leverage “significant content purchasing power,” Netflix said.

Comcast doesn’t try to prevent studios from selling shows to Web companies, the company said in answers to questions from a Senate committee. The company limits rights for “certain full episodes” of cable shows to be distributed free “at the same time, or shortly after” the shows are shown on cable.

--With assistance from Kelly Riddell in Washington. Editors: Rob Golum, Ville Heiskanen

To contact the reporters on this story: Todd Shields in Washington at tshields3@bloomberg.net; Adam Satariano in San Francisco at asatariano1@bloomberg.net.

To contact the editors responsible for this story: Larry Liebert at lliebert@bloomberg.net; Anthony Palazzo at apalazzo@bloomberg.net.
http://www.businessweek.com/news/2010-04-27/comcast-nbc-probe-lets-fcc-seek-concessions-for-web-tv-startups.html

Media Moguls Weigh In on New-Media Monetization (http://www.worldscreen.com/articles/display/25534)

LOS ANGELES: Comcast’s Brian Roberts, Time Warner’s Jeff Bewkes and CBS Corporation’s Les Moonves were among the panelists discussing new-media business models and content creation for devices such as the iPad in a Cable Show session yesterday afternoon.

...

Google and Intel in web TV launch (http://www.ft.com/cms/s/2/bec2d07a-610a-11df-9bf0-00144feab49a.html)


Google and Intel are expected to announce a significant breakthrough into consumer electronics and the broadcast industry this week with the launch of a “Smart TV” platform.

Top executives from the Silicon Valley companies are reported to be ready to reveal a deal with Sony, bringing web services to its televisions, during Google’s annual developer conference in San Francisco.

Intel’s Atom microprocessor and Google’s Android operating system are spearheading their assault on set-top boxes and TVs featuring integrated internet services.

The technology companies have had little success penetrating the TV industry to date but both are now seeking to take advantage of service providers and TV manufacturers scrambling to add web capabilities and content.

“The revolution we’re about to go through is the biggest single change in television since it went colour,” Paul Otellini, Intel chief executive, told analysts last week.

At the Consumer Electronics Show, Las Vegas, in January, manufacturers showed off televisions, Blu-ray players and set-top boxes with internet connectivity and services ranging from movies provided by Netflix, CinemaNow and Vudu to channels playing internet radio, connecting to online photo services and adding social networking features such as Twitter and Facebook.

Intel pioneered internet “widgets” on TV screens with Yahoo in 2008 but while many other players have entered the market since, it remains fragmented and has been slow to take off.

“If you had asked me a year ago, I would have said no way Intel and Google could make an impression,” said Kurt Scherf, principal analyst at research firm Parks Associates. “But Intel looks to have gained some traction and the operating system space is so wide open that it’s a case of why not Google at this point.”

Intel said its latest Atom chip offers better audio and video performance, wider and open software support and is cheaper than the competition.

It currently has an order backlog of 1m units for the chip. France Telecom and Telecom Italia are among a number of customers lined up to put the chips in set-top boxes.

“We’re seeing the beginning of explosive growth,” Eric Kim, head of Intel’s Digital Home group, told analysts. “Right now, we’re gearing up for a massive retail launch of [connected devices] this year.”

Google is expected to call on its Android developer community this week to create applications for TVs and its software could prove popular if it also promises advertising revenues for TV manufacturers.

“Consumer electronics manufacturers want a piece of this [advertising] pie and Google is the player in this very crowded space that can immediately offer them revenue share,” said Mr Scherf.

Google TV: everything you ever wanted to know (http://www.engadget.com/2010/05/21/google-tv-everything-you-ever-wanted-to-know/)

Google made some waves yesterday when it announced the new Google TV platform, backed by major players like Sony, Logitech, Intel, Dish Network, and Best Buy. Built on Android and featuring the Chrome browser with a full version of Flash Player 10.1, Google TV is supposed to bring "the web to your TV and your TV to the web," in Google's words. It's a lofty goal that many have failed to accomplish, but Google certainly has the money and muscle to pull it off. But hold up: what is Google TV, exactly, and why do all these companies think it's going to revolutionize the way we watch TV? Let's take a quick walk through the platform and see what's what.

...

Netflix Taps Microsoft PlayReady as Its Primary DRM Technology for Netflix Ready Devices and Applications (http://www.microsoft.com/Presspass/press/2010/may10/05-25PlayReadyNetflixPR.mspx)

REDMOND, Wash., and LOS GATOS, Calif. — May 25, 2010 — Microsoft Corp. and Netflix Inc. today announced that Netflix has selected Microsoft PlayReady technology and the Protected Interoperable File Format (PIFF) for use in new Netflix ready devices and applications. This adoption will enable Netflix members to instantly watch thousands of TV episodes and movies over the Internet on a wide range of new devices — Internet TVs, Blu-ray disc players, home theater systems, video game consoles and other devices from a broad variety of consumer electronics manufacturers.

Today’s agreement, which makes Microsoft PlayReady the primary content protection technology for Netflix partner devices and applications, underscores the benefits of PlayReady as a flexible, reliable and scalable content protection technology. Netflix already deploys PlayReady to enable all instant streaming scenarios on Windows-based PCs and Macs. The company expects the first Netflix ready devices beyond computers to incorporate Microsoft PlayReady as early as this summer. The Netflix ready device program, which launched in 2007, already has dozens of devices on the market that use Windows Media DRM.

“Netflix ready devices are a popular way for our members to instantly watch the huge library of TV episodes and movies available from Netflix that can be watched instantly on their TVs,” said Bill Holmes, vice president of business development at Netflix. “Netflix is expanding our investment in PlayReady and making PlayReady our primary DRM technology because it best meets the requirements of our content suppliers and device partners while allowing us to benefit from efficiencies in our content delivery infrastructure.”

“Microsoft and Netflix have worked closely on the technologies enabling Netflix members to instantly watch movies — including PlayReady and Silverlight — since the initial planning of instant streaming from Netflix,” said Andreas Mueller-Schubert, general manager of the Media Platforms Business at Microsoft. “By working with Netflix on this broader support for Microsoft PlayReady and PIFF, more people — using more devices — will enjoy the immediacy and choice that the pioneering service of Netflix delivers.”

Microsoft PlayReady is designed to enable digital entertainment services across devices and software applications, with a specific focus on meeting the needs of mobile and network operators, service providers, and device manufacturers. Microsoft PlayReady supports a broad range of business models that can be applied to almost any type of digital content, including videos, games and images, and a wide range of audio and video formats, including MPEG Advanced Audio Coding (AAC), AAC+, Enhanced AAC+, H.264, Windows Media Audio (WMA) and Windows Media Video (WMV). Microsoft PlayReady also provides features, such as service domains and embedded licenses, specifically designed to make it easy for consumers to enjoy content on all of their registered devices without the need for an active connection.

Digital Entertainment Content Ecosystem Announces New Member Companies and Appoints Mark Teitell as General Manager (http://www.marketwatch.com/story/digital-entertainment-content-ecosystem-announces-new-member-companies-and-appoints-mark-teitell-as-general-manager-2010-05-25?reflink=MW_news_stmp)

BT, Cineplex Entertainment, CSG Systems' Content Direct, Huawei, IBM, NDS, and Red Bee Media Join Charge to Make "Buy Once, Play Anywhere" a Reality for Consumers

LOS ANGELES, May 25, 2010 (BUSINESS WIRE) -- Today, the Digital Entertainment Content Ecosystem LLC (DECE LLC), www.decellc.com, a cross-industry consortium dedicated to driving a new, open market for digital content distribution, named Mark Teitell as its general manager and announced the addition of seven companies to the coalition, bringing the total to 55 member companies.

DECE's newest members who are dedicated to ensuring digital content, devices and services will work together seamlessly include: BT, Cineplex Entertainment, CSG Systems' Content Direct, Huawei, IBM, NDS, and Red Bee Media. These companies join DECE's diverse roster of member companies that span every industry involved in digital entertainment.

"Cineplex is dedicated to expanding and enhancing entertainment choices for our guests both in our theatres and at home through our Cineplex Store," said Pat Marshall, Vice President Communications and Investor Relations, Cineplex Entertainment. "Leveraging the benefits of the DECE ecosystem is part of our plan for online innovation as we prepare to launch our digital download product later this year. We're delighted to join fellow DECE participants in charting this course and bringing the ecosystem to market."

Brian Levy, Chief Technology Officer of new member Red Bee Media added, "Red Bee Media with our heritage of innovation are proud to join DECE and to play our part in this important industry body to deliver next generation cross device content services to the customer."

Additionally, DECE has retained the services of Mark Teitell to help drive strategy, product and business development, marketing and operations for the consortium. Teitell will be dedicated to working with executives from DECE member companies to launch DECE's open, interoperable digital ecosystem and accelerate its global adoption by the industry and, ultimately, consumers.

"DECE has grown tremendously in the past year, both organizationally and technically," said Mitch Singer, president of DECE and Chief Technology Officer of Sony Pictures Entertainment. "With a seasoned executive like Mark, who is so well-versed in the digital entertainment landscape, coupled with the support from our ever growing team of member companies, we are moving steadily towards launch."

Teitell most recently served as a partner in the media and consumer technology practice at Oliver Wyman, an international management consulting firm. There, Teitell advised senior leaders across the home and mobile entertainment value chains, including DECE, as it made key strides such as developing a common file format for digital content and selecting a vendor for its digital rights locker.

These milestones were announced by the consortium at CES 2010, along with the approval of five DRM solutions and the addition of 21 new members. With these elements in place and the continued expansion of the consortium, DECE is establishing the backend platform that will support this new, open digital media market and prepare the way for its brand launch.

About Digital Entertainment Content Ecosystem (DECE) LLC

The Digital Entertainment Content Ecosystem (DECE) LLC is a cross-industry initiative developing the next generation digital media experience based on open, licensable specifications and designed to create a viable, global digital marketplace. The DECE is currently made up of Adobe, Alcatel-Lucent, Ascent Media Group, Best Buy, Blueprint Digital, BT, CableLabs, Catch Media, Cineplex Entertainment, Cisco, Comcast, Cox Communications, CSG Systems' Content Direct, Deluxe Digital, DivX, Dolby Laboratories, DTS, ExtendMedia, Fox Entertainment Group, HP, Huawei, IBM, Intel, Irdeto, Liberty Global, Lionsgate, Microsoft, MOD Systems, Motorola, Movie Labs, Nagravision, NBC Universal, NDS, Netflix, Neustar, Nokia, Panasonic, Paramount Pictures, Philips, Red Bee Media, RIAA, Rovi, Roxio CinemaNow, Samsung Electronics, Secure Path, Sony, SwitchNAP, Tesco, Thomson, Toshiba, Verimatrix, VeriSign, Warner Bros. Entertainment, Widevine Technologies Inc. and Zoran. DECE's new digital media specifications, logo program and interoperable digital rights locker will enable consumers to purchase digital video content from a choice of online retailers and play it on a variety of devices and platforms from different manufacturers.

WSJ:

Warner Bros. Chief Considering Earlier Home Video Release (http://online.wsj.com/article/BT-CO-20100527-717020.html)

Warner Bros. Chief Executive Barry Meyer said Thursday the studio is considering an early window for home video release at a premium price in an attempt to offset declines in DVD sales, which is Hollywood's largest engine of profits.

At an investor presentation held in New York City by the studio's owner, Time Warner Inc. (TWX), Meyer said the industry is discussing making films available on-demand in homes 30 days after their theatrical release. He said he is open to such an offering, but added that 30 days is likely too short of a time lag, adding that he is aware of the conflicting needs of the studio's partners, such as movie-theater owners and DVD retailers, including Wal-Mart Stores Inc. (WMT).

Meyer, however, noted that about 90% of box office receipts for a film typically come in within four weeks of its theatrical release, suggesting that a 30-day time lag for home entertainment release might not hurt that business substantially.

The Wall Street Journal recently reported that Time Warner Cable Inc. (TWC), which was spun off from media conglomerate Time Warner last year, has been pitching a service known as "home theater on demand," which would make movies available on the cable company's on-demand menu just 30 days after its theatrical release for $20 or $30 apiece.

The specifics of the proposal is still being debated and talks are fluid. People close to the matter say that several studios could sign on to a version of it as soon as the fall, making the first movies available on such a system by the end of the year or early 2011.

The proposal is controversial, since it would likely be highly disruptive to the traditional movie business and could meet stiff opposition from theater chains as well as Wal-Mart, which wields enormous power in the home entertainment business since it commands such a large share of the DVD retail business.

Among the studios who have reviewed the proposal are Warner Bros., Walt Disney Co.'s (DIS) Disney Studios, General Electric Co.'s (GE) Universal Pictures, Sony Corp.'s (SNE) Sony Pictures, Viacom Inc.'s (VIA) Paramount Pictures and News Corp.'s (NWSA, NWS) Twentieth Century Fox.

Sonic Solutions and MOD Systems Align to Link Kiosk and Online Entertainment Delivery Platforms (http://www.prnewswire.com/news-releases/sonic-solutions-and-mod-systems-align-to-link-kiosk-and-online-entertainment-delivery-platforms-95843859.html)

Offers Retailers a Comprehensive Solution for Digital Entertainment Sales and Promotion

NOVATO, Calif., and SEATTLE, June 8 /PRNewswire-FirstCall/ -- Sonic Solutions® and MOD Systems today announced a strategic partnership that intends to arm retailers with a complete, multi-platform system for digitally delivering premium entertainment. The system will integrate RoxioNow™, Sonic's platform for the over-the-top Internet delivery of entertainment to connected devices, with MOD Systems' solution for self-service digital download kiosks. Participating retailers would be able to provide consumers' convenient in-store and connected-device options for purchasing digital film and television titles that can be easily accessed and enjoyed from a wide range of devices including PCs, laptops, Blu-ray Disc players, HDTVs, and smart phones. Sonic and MOD Systems will announce additional details of their initiative later this year, pending the securing of appropriate license rights from content owners.

"Today consumers have a variety of physical and digital entertainment purchase options, both in-store and online, but without a bridge that connects them together," said Anthony Bay, Chairman and CEO of MOD Systems. "Together with Sonic, we're taking a major step toward meeting the long-standing vision of the entertainment industry by giving consumers easy access to digital entertainment whether in-store, online, at home, or on the go, all sold and supported by the retailer brands consumers trust."

The integrated solution supports approved digital content distribution standards, and is being designed to be compatible with Digital Entertainment Content Ecosystem (DECE), an industry consortium developing a digital content distribution ecosystem that will provide consumers with an easy way to access, purchase and play digital content.

"DECE's goal is to deliver protected content in such a way that consumers enjoy a 'Buy Once, Play Anywhere' experience," said Mitch Singer, President of DECE. "By participating in DECE, aligning their digital platforms with the framework of DECE, and preparing for the eventual adoption of the DECE specifications, Sonic and MOD are taking a step that will benefit consumers."

The companies' combined solution would allow retailers to offer consumers access to a wide array of digital entertainment for purchase from online digital download and streaming storefronts, as well as self-service, touch-screen kiosks that load to Secure Digital (SD) memory cards. Consumers will have the flexibility to play the content, including new movie releases and next-day television shows, at home and on the go. Content on SD cards from kiosks is delivered in the GreenPlay™ format, which can be played on any Windows PC and a growing number of GreenPlay-compatible consumer electronics devices. Entertainment from online storefronts will be streamed or downloaded to portable and connected devices through the RoxioNow entertainment platform.

"While we've seen a significant increase in the number of consumers embracing over-the-top video services, many still turn to physical storefronts as their destination for entertainment," said Dave Habiger, President and CEO, Sonic Solutions. "Leveraging kiosks to provide an in-store way for consumers to purchase entertainment in a digital form will help educate more consumers to the convenience and flexibility digital entertainment can afford them."

The Sonic and MOD Systems integrated approach will offer many benefits to retailers and studios. The solution will support both retailer and studio migration to digital content sales, while preserving valuable retail shelf space for new optical formats like Blu-ray Disc, and higher margin products. The combined technologies can also enable retailers to integrate customer accounts and deliver additional services with the retailer's brand at the core.

This new initiative extends the Sonic and MOD Systems partnership established in late 2009 with the joint development of the GreenPlay Media Player, based on the Roxio CinePlayer® software, using the MOD Systems GreenPlay SDK. The GreenPlay SDK, introduced in January 2010, enables software developers and device manufacturers to easily add GreenPlay support to software programs, portable media players, set-top-boxes, Blu-ray Disc players, and televisions.

Hulu plans to charge, expand to devices: sources (http://www.reuters.com/article/idUSTRE65760K20100609?type=technologyNews)

(Reuters) - Free video website Hulu plans to soon begin charging customers and is looking to expand its content to consumer devices like the Xbox and iPad, according to two sources, as the site's media owners experiment with platforms beyond an ad-supported TV model.

Those sources and another with knowledge of the matter said that Hulu, the website for TV viewing owned by News Corp, General Electric's NBC Universal and Walt Disney Co, was developing a subscription service to be rolled out on multiple devices in the next month or two. It was not clear if that service would be offered before Hulu is available on devices.

One of those devices is expected to be Microsoft Corp's Xbox, which also features Netflix Inc's movie streaming service, one of the sources said on Tuesday. Another one of the sources said Hulu was also working to offer its service on Apple Inc's iPad.

Hulu, which generated an estimated $100 million in advertising revenue last year, will continue to offer newer episodes of shows like Fox's "Glee" free of charge, but it will also charge viewers a monthly fee to see older episodes and other content, two of the sources said.

Hulu and Microsoft declined to comment.

Entertainment and cable industry executives will be closely watching Hulu's attempt at a paid model. Competition is intense, with entertainment companies and content distributors scrambling to become top dog in a worldwide online video market expected to hit $16.1 billion through paid and ad-supported services by 2012, according to ABI Research, which tracks media trends.

Since its launch in 2008, Hulu has emerged as one of the star players in online video, offering TV shows like "The Office," "The Simpsons" or "Lost" as well as hundreds of full length movies. Advertising has enabled it to be free.

Hulu is hardly an exception. Across the Internet, nearly all movies, TV shows, and video clips can be seen for free if the consumer is willing to tolerate advertisements. But that could change quickly if a Hulu paid service succeeds, since other entertainment companies are likely to accelerate their own efforts to create subscription models.

WILL CONSUMERS PAY?

Hulu's plan is not without risks, given how accustomed its users are to watching free video.

"Many consumers already pay $100 or more monthly for TV, telephony and high-speed Internet access and are unlikely to welcome an incremental fee merely to watch from the Internet some of the programs they already get," said Phil Leigh, an analyst with Inside Digital Media.

But Mike Vorhaus of media consultancy Frank N. Magid, believes that consumers will pay for the convenience of getting content when they want it, where they want it.

"Many viewers are not going home to watch TV anymore. They've already been trained to believe TV is coming to them and demand is growing for this content in different forms and different business models," he said.

"Some payment by some people for some online content is here to stay, but it will continue to evolve," said Vorhaus.

Netflix's Chief Executive Reed Hastings said on a recent conference call, "There's the potential emergence of direct competitors (like) Hulu. We'll see what they do, and potentially others over time ... but the upside is it's a very big market."

Some of the biggest threats to Netflix and sites like Hulu come from cable and satellite operators, who are ramping up video-on-demand, fearing viewers will drop pay-TV subscriptions in favor of broadband and mobile video.

Cable company Comcast and Time Warner are trumpeting plans for "TV Everywhere," which would enable viewers to watch TV shows on demand for free and on any device

as long as they are already paying customers.

There has been industry speculation that companies from Apple Inc to Disney's ABC are looking into launching subscription-TV services. Sony Corp recently inked a deal to offer Time Warner's HBO programs via download through the PlayStation 3 game console.

An episode of an HBO series like "True Blood" will be available for download on the PS3 as it is on services like Apple's iTunes. Through affiliates like Comcast and Verizon, HBO also offers "HBO Go", a broadband service attached to its regular cable subscription, which goes into the TV Everywhere model.

WSJ:

Warner Bros. Chief Considering Earlier Home Video Release (http://online.wsj.com/article/BT-CO-20100527-717020.html)


Hopefully the studios start jumping on board something like this. I would certainly watch at least two or three movies a year for $20 to $30, at 30 days after the inital theatrical release date.

Sears Plans Film-Download Store in Challenge to Best Buy, Apple (http://www.bloomberg.com/news/2010-06-22/sears-plans-film-download-store-in-challenge-to-best-buy-apple.html)

Sears Holdings Corp., owner of the Sears and Kmart retail chains, will start an online store to compete with Apple Inc. and Best Buy Co. in selling downloads of movies and TV shows as Web-connected devices become more common.

The digital store will use an online service and technology operated by Sonic Solutions Inc., the companies said today in a statement. Sonic’s RoxioNow system will be installed on televisions, computers, Blu-ray disc players, set-top boxes and mobile phones sold by the biggest U.S. department store chain.

With Sonic, the retailer will be able to offer a Sears- branded digital storefront and promote special programming and services across devices starting later this year. Best Buy already licenses Sonic software for the online movie store it operates, while Apple uses its own iTunes system.

“Teaming up with Sonic is a great opportunity for Sears and Kmart to quickly establish a position in digital video entertainment,” Karen Austin, president of home electronics for Hoffman Estates, Illinois-based Sears, said in the statement.

Sears joins a growing list of companies licensing Sonic technology, which lets users rent or buy films and TV shows for viewing on a number of products. Digital downloads are expected to eclipse packaged DVD and Blu-ray disc sales after 2015, said Bo Andersen, president of the Entertainment Merchants Association in Encino, California.

Competing Against Apple

Sonic’s technology will be included on TVs and electronic products made by Samsung Electronics Co., LG Electronics Inc., Vizio Inc., HTC Corp. and Toshiba Corp.

The electronics makers will begin shipping products that connect to Sonic’s service later this year, in time for U.S. holiday shopping, Mark Ely, the company’s executive vice president for strategy, said in an interview. It is already on some Blu-ray players, mobile devices and set-top boxes.

Apple’s iTunes store, which sells digital downloads of music, movies, TV programs and games, has withstood threats from other retailers. Netflix Inc. offers a subscription service for mail-order DVD rentals and streaming of mostly older releases, using its own software. Wal-Mart Stores Inc. acquired movie download service Vudu Inc. in February.

Sonic has licensed thousands of movies from the major Hollywood studios, according to Ely. The Novato, California- based company also provides technology for Blockbuster Inc.’s online store and TiVo Inc.’s digital-video recorders.

“We’re seeing more and more willingness among retailers and the content community to really make it all happen,” Ely said. “Consumers aren’t going to get behind digital media commerce unless that media is broadly accessible and playable on a number of devices.”

Movie Prices

Movies rentals will cost $2 to $5, Ely said. Films and TV shows will be priced at $2 to $20 for purchase.

Sears Chairman Edward Lampert has been trying to bolster profit and lure customers back to its stores in the U.S. and Canada. Sales declined almost 7 percent over the past year while revenue has increased for competitors such as Costco Wholesale Corp., Best Buy and Wal-Mart.

IEEE working group considers kinder, gentler DRM (http://arstechnica.com/tech-policy/news/2010/06/ieee-working-group-considers-kinder-gentler-drm.ars?utm_source=rss&utm_medium=rss&utm_campaign=rss)

People don't like DRM in large part because it removes much of their control over things like e-books, music, and movies. Want to loan a DRMed song to a friend? You probably can't, even though sharing a physical item like a CD remains trivial.

A new IEEE working group has an ambitious plan to change this and return control over "digital personal property" to consumers. DRM's electronic tethers would be cut, but rightsholders would not need to remove all limits on sharing. Instead, digital personal property enables the same sort of private sharing that is easily possible with physical objects while still preventing worldwide mass distribution.

Living in a material world
It sounds almost futile: making digital goods "rivalrous" (after being taken, someone else is deprived of their use) when copying is the basic activity of digital devices. But the IEEE P1817 working group has a plan to do exactly this.

Engineer Paul Sweazey has been the driving force behind the idea, which we profiled a year ago when the IEEE first consented to study the idea. A few weeks ago, the idea graduated to working group status; the group will hold its first meeting July 14 in Santa Clara, California.

The "digital personal property" idea involves two major pieces: a title folder and a playkey. The title folder contains the content in question, it's encrypted, and it can be copied and passed around freely. To access the content inside, however, you'll need the playkey, which is delivered to the buyer of a digital media file and lives within "tamper-protected circuit" inside some device (computer, cell phone, router) or online at a playkey bank account. Controlling the playkey means that you control the media, and you truly own it, since no part of the system needs to phone home, and it imposes no restrictions on copying (except for those that arise naturally from fear of loss).

The playkey, unlike the title folder, can't be copied—but it can be moved. To give your friends and family access to the file in question, you can send them a copy but must also provide a link to the playkey. Under the DPP system, though, anyone who can access the playkey can also decide to move it to their own digital vault—in essence, anyone can take the content from you, and you would no longer have access to the media files in question if they did so.

According to the P1817 working group, this means that:

[P]roduct ownership is perpetual, and the tethers are severed that connect your purchases to their vendors. No one can restrict how you privately use or share them. However, because they are copyrighted, rightsholders retain the legal right to control public dissemination of their works. Just as a printed book can be lost if you share it publicly (i.e., with strangers), you must be careful to share only privately (i.e., with those you trust.) That's because anyone who shares either of your playkeys can take both of them and move them to his own device and his own online playkey bank! The availability and mobility of playkeys lets you electronically share, lend, borrow, give, take, donate, and resell digital property, just as you do with your physical possessions. And since playkeys remain singular, unique, and protected from counterfeiting, copyright holders know that your sharing will remain a private, non-public matter.

The entire system is predicated on the fear of loss; share with people you don't know, and at some point your playkey will probably be moved to someone else's control.

Making digital goods act like physical objects might sound like a bizarre step backward. Didn't we gain quite a lot with the shift to digital, non-rivalrous items? We certainly did, but Sweazey argues that a truly non-rivalrous system makes commerce too difficult, even impossible, and that we need to create ways for the digital world to mirror the constraints of the physical one.

If it sounds odd, consider that traditional DRM vendors have tried to do the same thing for more than a decade already. The digital personal property approach both removes tethers to corporate DRM servers and liberates sharing, and sounds like an effort to make DRM's basic approach palatable enough that it won't bother people.

Certainly, DRM alone has not proved enough to dissuade people from buying products, so long as it is remains out of their way most of the time; consider DVDs, Blu-ray discs, Apple's FairPlay, the Kindle's e-book DRM, console games, and Apple's App Store. If P1817 gets major support from vendors and rightsholders, it might prove acceptable to consumers, finally removing some of the ridiculous limitations on backups and format shifting that traditional DRM has eviscerated.

P1817 has a tough road ahead, and there's still something of the "cram the genie back in the bottle" to the whole approach. But those who want to make the scheme work are welcome at the group's meetings (PDF), which Sweazey sees as necessary "middle ground" in the DRM wars.

"I also understand that the Ars Technica readership leans heavily toward the 'all bits are free' direction," Sweazey noted in an e-mail, "but for us they provide a balance to the DRM defenders who think that 'the beatings should continue until morality improves.' There is a middle ground, and someone needs to enable it. We're volunteering."

Website: http://grouper.ieee.org/groups/1817/

Tech Description: http://grouper.ieee.org/groups/1817/pub_docs/TechDescription_095.pdf

IEEE P1817TM vs. DECE:

Group Seeks to Set Standard for Consumer-Ownable Digital Property (http://newsbreaks.infotoday.com/NewsBreaks/Group-Seeks-to-Set-Standard-for-ConsumerOwnable-Digital-Property-67854.asp)

Do you really "own" that song you bought on iTunes? Have you ever even thought about it? Chances are, if you have ever considered digital property at all, it's been in terms of piracy and intellectual property-or, in short, from the creator's perspective. But as ebooks take off, actual CDs go the way of the dodo, and we spend more money on digital products of all kinds, tricky issues surrounding digital rights management-or the lack thereof-abound and one group is trying to do something about it. The Working Group developing IEEE P1817TM, a new Standard for Consumer-Ownable Digital Personal Property, is currently being formed. It will hold its first meeting July 14, at Huawei North America Headquarters in Santa Clara, Calif.

"What if physical goods couldn't be owned?" asks Paul Sweazey, chair of the P1817 Working Group. "The world would be in chaos."

Think about it like this: if you bought a CD at the store, got it home and realized you could only play it on a Sony CD player you would be very confused, and probably demand your money back. Yet, until Apple changed its DRM policies recently, songs bought through the iTunes store could only be played on an iPod-not on your Sansa or other MP3 player. Sweazey explains: DRM emulates unownable services (e.g., rental, subscription); plain files emulate unownable public goods; P1817 emulates ownable private goods. He adds, "It's silly not to have ownable digital goods, and it's easier and simpler than DRM to create. It's just that it must be an open, global standard, so the IEEE is doing it."

"This is interesting to me because it speaks to the complexity and the breadth of the device landscape," says Ned May, director and lead analyst at Outsell, Inc. "There are definitely standards that have emerged [like MP3s]. It's a mix of organic and market driven evolution, but this is a lot more complex... This is multiple forms of media across all different kinds of industries."

Of course, the IEEE Standard Association is not the only group that has noticed the DRM problem and tried to do something about it. The Digital Entertainment Content Ecosystem (DECE) says it is developing "an exciting new way to buy, access, and play digital entertainment." As Jef Pearlman pointed out in a Jan. 15, 2010, post on Publicknowledge.org, DECE has a few problems of its own. The "buy once, play anywhere" model DECE promotes already exists in DRM-free products. More importantly, "anywhere" really means "anywhere that is DECE approved." In essence, it's just a different kind of rights management.

"DECE is a great project, aimed at erasing as many of the barriers as possible to giving consumers that ownership feeling and sense," says Sweazey. "It will not, however, give consumers actual ownership of products." The IEEE standard would aim to allow owners of digital products to share them the same way you would the equivalent physical product with a friend or family member, without allowing the "stranger sharing" often regarded as piracy.

"The number one challenge will be to educate that P1817 isn't building a content protection system; rather, it is creating the digital equivalent of private goods-ownable personal property," says Sweazey. "Most of the conflicts between consumers and suppliers exist because they think that they own what they buy, but this isn't yet true for digital products. Consumers are continually surprised and dismayed by this."

Many consumers, however, will not see the difference between simply buying a DRM-free product, and one that meets the still non-existent IEEE standard. More to the point, they may not see how it benefits them. "For the purposes of P1817, we are using the consumer notion of ownership as our guide," Sweazey says, "meaning that we are working toward what human beings mean when they say they own something, summarized by, ‘If I own it, then it's nobody's business what I do with it.'"

Buyers, though, already have that in DRM-free files, like songs ripped from a CD, or a copy made by a friend. So what's in it for them? According to Sweazey, "The only thing that I know that you can't do with a P1817 product and that you can to with a plain file is to share it with strangers. And even that isn't blocked, it's just that the certain consequence is that some stranger will steal from you."

At the moment, though, the Working Group developing IEEE P1817TM consists largely of lawyers, rather than engineers, and the organization is looking for more input. "The technology aspects of the P1817 project are straightforward, and it's mostly a matter of selecting and assembling the constituent algorithms and protocols appropriate for an open, global standard," says Sweazey. With the first meeting scheduled for July, it will no doubt be some time before there is an actual standard, and even longer still until we see if it is at all effective or enforceable. Even Sweazey is not sure what the true outcome will be: "It could be simple and weak: Companies advertise that they conform to the standard, and hopefully they do. It could be formal and strong: The IEEE and others could lobby governments for legal protections of digital personal property... It could be something in between: a compliance and robustness regime established by a consortium of companies."

"The market leader never calls for open standards," says May. In other words, Apple is not out there looking for a standard regarding consumer-ownable digital products. And if the big guys in the digital product space-like Apple or Amazon-don't sign on, it's hard to say if the standard has a chance of making a real difference. May adds, "There needs to be an incentive to adopt it."

Sweazey says, "In the end, the solution to rational, peaceful, global commerce in downloadable digital products will involve the evolution of copyright law so that it properly discerns between the copying of bits and the counterfeiting of products. Before that can occur, the technology for that discernment must first exist. The first mission of P1817 is to standardize the discerning technology."

Sony's PlayStation Network Said Close to Deal for Hulu Service (http://www.bloomberg.com/news/2010-06-24/sony-s-playstation-network-said-to-be-near-deal-for-hulu-s-paid-tv-service.html)

Sony Corp. is close to an agreement to carry a paid TV service from Hulu LLC, operator of the second-largest video website, on its PlayStation 3 game console, two people with knowledge of the talks said.

The partnership could be announced as soon as next week, according to the people, who asked not to be identified because the arrangement hasn’t been made public.

Access to video-game consoles would give Hulu’s planned pay service a bigger audience and more revenue by making its Internet programming more widely available on television sets. Hulu also is in talks with CBS Corp., Viacom Inc. and Time Warner Inc. to add their TV shows to the website’s subscription service, people with direct knowledge of the discussions said.

PlayStation 3 owners registered for the console’s free Web service, the PlayStation Network, would be able to subscribe to a Hulu service that provides on-demand access to current and past seasons of prime-time TV shows from NBC, Fox and ABC, the people said. Hulu also is in talks to put its $9.95 a month service on Microsoft Corp.’s Xbox, Reuters reported previously.

Patrick Seybold, a spokesman for Sony’s PlayStation Network in Foster City, California, declined to comment on a possible agreement, as did Christina Lee, a spokeswoman for closely held Hulu. Worldwide, the PlayStation Network has 50 million registered users, Seybold said in an e-mail.

Sony fell 1.2 percent to 2,462 yen as of 10:52 a.m. on the Tokyo Stock Exchange. The shares of the world’s third-largest TV maker have declined 7.8 percent this year.

Founders, Investors

Hulu, based in Los Angeles, was founded by General Electric Co.’s NBC Universal and News Corp.’s Fox. Walt Disney Co.’s ABC and private-equity firm Providence Equity Partners Inc. are also investors in the website.

The site, which now lets computer users watch shows for free and gets its revenue from advertising, is seeking to expand the ways users can view programming, as well as add new shows to attract paying subscribers. The company will need to renew program rights from owners including NBC at the end of 2011, according to Laura Martin, a Needham & Co. analyst. The network investors also offer shows on their own websites.

A subscription would put Hulu in more direct competition with Netflix Inc., which supplies online and mail-order access to movies and past-season TV shows starting at $8.99 a month. Netflix already provides its online movie service on consoles from Sony, Microsoft and Nintendo Co., as well as through Blu- Ray players and Roku Inc. devices that connect TVs to the Web.

Hulu Chief Executive Officer Jason Kilar has said his site’s ad-supported model is profitable on a cash-flow basis.

The website garnered $52.4 million in sales in February, with 72 percent going to the content owners, according to estimates from research firm SNL Kagan. That left Hulu with $14.7 million in revenue, $12.6 million in costs and a $2.04 million profit, SNL Kagan calculates.

Hulu unveils $10 premium service (http://money.cnn.com/2010/06/29/technology/hulu_plus/)

NEW YORK (CNNMoney.com) -- Internet TV website Hulu on Tuesday unveiled a premium, subscription-based service that will be available on the iPhone, iPad, and some other devices in addition to the Web.

The new service, called Hulu Plus, will cost $10 per month. It is in limited release now, but users can go to Hulu's website to request an invitation to subscribe. The company said Hulu Plus would be opened to the general public in the coming months.

A subscription service for the popular site has long been the subject of rumors. The standard Hulu service is free, but it is not supported on mobile phones or Internet-connected devices like video game consoles, Blu-ray players or even certain HDTVs.

Hulu Plus will be compatible with a host of new devices, plus Apple's popular iPhone and iPad. It will eventually work with Microsoft's Xbox 360, Sony's PlayStation 3, Samsung Internet-ready HDTVs and Blu-ray players manufactured by Samsung, Sony and Vizio, the company said on its website. It will also be available online.

Hulu is a service co-owned by Fox parent company News Corp (NWS, Fortune 500)., ABC parent Disney (DIS, Fortune 500) and NBC parent General Electric (GE, Fortune 500). The site shows certain content from those three networks and some movies for free.

The free site generally allows viewers to watch just a handful of episodes from a show before it begins removing them. But Hulu Plus will allow subscribers to view the entire current season's episodes of Fox, ABC and NBC shows. It will also show all of the past seasons of many hit shows like the "X Files," "The Office" and "Grey's Anatomy."

Most of the content on Hulu Plus will be delivered in high definition.

Hulu has more than quadrupled its viewership in the past year. U.S. viewers watched nearly 1.2 billion free TV programs or movies on Hulu in May, up from about 250 million a year earlier, comScore said. That's 27 videos per viewer, up from under 15 videos last year.

What's more telling is how much Hulu people watch. Viewers tuned into Hulu for an average of 2.7 hours in May, up a full hour from a year earlier.

Analysts had long predicted that Hulu's rampant success would lead it to try its hand at a subscription-based service, as subscription services like Netflix (NFLX) enjoy huge gains in both customers and revenue. It appears for now that the company will continue to offer Hulu for free in addition to Hulu Plus.

"Hulu Plus is not a replacement for Hulu -- it's something new," the company said on its website.

What's bigger than 1080p? 4K video comes to YouTube (http://youtube-global.blogspot.com/2010/07/whats-bigger-than-1080p-4k-video-comes.html)

Today at the VidCon 2010 conference, we announced support for videos shot in 4K (a reference resolution of 4096 x 3072), meaning that now we support original video resolution from 360p all the way up to 4096p. To give some perspective on the size of 4K, the ideal screen size for a 4K video is 25 feet; IMAX movies are projected through two 2k resolution projectors.

We always want videos on YouTube to be available in the highest quality possible, as creators intend. In December of last year, we announced support for 1080p, or full HD. At 4096 x 3072 pixels, 4K is nearly four times the size of 1080p. To view any video in a source resolution greater than 1080p, select "Original" in the video quality pulldown menu:


https://docs.google.com/a/google.com/File?id=cct69kdz_297c4486wcp_b


To illustrate the power of 4K, please check out the videos in this playlist; each one was created by a filmmaker with access to a 4K camera. (Be warned: watching videos in 4K, even on YouTube, will require ultra-fast high-speed broadband connections).

Because 4K represents the highest quality of video available, there are a few limitations that you should be aware of. First off, video cameras that shoot in 4K aren’t cheap, and projectors that show videos in 4K are typically the size of a small refrigerator. And, as we mentioned, watching these videos on YouTube will require super-fast broadband.

We're excited about this latest step in the evolution of online video. We've been impressed by the 1080p videos you've uploaded over the last seven months and can't wait to see (in 4K!) what you do next.
4K Video Playlist (http://www.youtube.com/view_play_list?p=5BF9E09ECEC8F88F)

Well at least the 4K videos download a little faster than the 1080P ones. For 1080P it never seems to go above 20mbs for me. For the 4K videos they didn't go above 32mbs for me.

Widevine to Provide the Ultimate Internet TV and Movie Experience With Support for Dolby Digital Plus Surround Sound (http://www.marketwire.com/press-release/Widevine-Provide-Ultimate-Internet-TV-Movie-Experience-With-Support-Dolby-Digital-Plus-1288434.htm)

Widevine's Video Technologies Now Supports Dolby Digital Plus to Enable the Highest-Quality Audio and Video Experience on the Internet

SEATTLE, WA--(Marketwire - July 12, 2010) - Widevine, a provider of digital entertainment solutions, announced today support for Dolby® Digital Plus in its video optimization and digital rights management (DRM) platform to bring the movie theater-like experience directly to the living room via the Internet.

Dolby Digital Plus is a versatile, scalable digital audio coding technology that extends the capabilities of Dolby Digital, delivering up to 7.1 channels of surround sound. It supports a wide range of bit rates to ensure optimized sound quality and efficiency to match available bandwidth. It also enables advanced applications such as multiple-program support and audio stream mixing.

"Dolby Digital Plus enables video providers to deliver a richer, more immersing audio experience over the Internet," said John Griffin, Senior Director, Dolby Laboratories. "By supporting Dolby Digital Plus in its video optimization solution, Widevine can offer outstanding audio along with high-quality video to deliver cinema-like experiences for the home."

Widevine's video optimization platform includes adaptive streaming and virtual DVD features such as trick play and chaptering, creating a DVD-like viewing experience on content delivered over the Internet. The solution is natively supported in nearly all major brands and types of network-connected consumer electronics including televisions, Blu-ray players, mobile devices, gaming systems, and more. Widevine's technologies have been adopted by content providers and service operators across all industries, including large cable, satellite and telecommunication companies launching TV Everywhere solutions.

"More and more consumers are turning to the Internet for entertainment," said Brian Baker, CEO of Widevine. "By combining our video optimization technology with support for Dolby's audio technology, video providers can be assured that their customers will have the best experience possible on digital media delivered over the Internet."

Panasonic Adding Movie VOD Transactions To Its Connected TVs (http://paidcontent.org/article/419-panasonic-adding-movie-vod-transactions-to-its-connected-tvs/)



The connected-TV space is about to unleash whole new opportunities for video content owners to distribute and profit from their content.

In one of the latest examples, Panasonic is adding a third-party movie vendor, AceTrax, to VieraCast, the connected-TV interface on its TVs and Blu-ray players, in Europe.

Zurich-based AceTrax claims a library of over 2,000 titles from WB, Universal, Paramount and smaller studios and aggregators. Viewers can watch them on up to four different devices, including computers, using a PIN to identify each.

The service will be available on Panasonic TVs in the UK, Ireland, Germany, Austria, Switzerland, France and Italy.

AceTrax and Panasonic are making a point of pitching their offering against movies from Sky Movies and Virgin Media (NSDQ: VMED), which require a set-top box, and from the movie rental service LoveFilm, which operates via subscription. AceTrax offers both rentals (£1.49-£3.49) and pay-to-own (£4.99-£11.99) on an a la carte basis, direct to the TVs. Titles are DVD- but not HD-quality.

AceTrax says it has similar deals with other home electronics makers which it will be announcing later in the year.

The likes of Sky Movies will likely need to talk with home electronics makers about carrying their own services on new gadgets, lest their historical advantage be crowded out. LoveFilm had been interested in getting carriage on the BBC-led Project Canvas connected-TV platform, which will offer transactional internet services over broadband.

Netflix June Traffic Growth ‘Off the Charts’ (http://newteevee.com/2010/07/12/netflix-june-traffic-growth-off-the-charts/)

Netflix traffic growth is “off the charts,” according to a Citi research report citing comScore data. Due mainly to the immense takeup of the company’s Watch Instantly streaming video service, the number of visitors to the Netflix website spiked 46 percent year-over-year in June, which is the fastest year-over-year growth Citi analyst Mark Mahaney says he has seen in more than five years. For the second quarter, Netflix’s web traffic was up 34 percent year-over-year, which is an acceleration over 19 percent growth year-over-year that the subscription rental firm saw in the first quarter.

The massive traffic growth comes as Netflix has seen its online streaming service take off, driving more users to begin watching its videos through their TVs, Blu-ray players, game consoles and other connected devices. Interest in Netflix streaming has also led a dramatic increase in subscribers over the last year; the subscription rental firm added 1.7 million new subscribers in the first quarter, ending the period with 14 million customers. That represents an increase of 35 percent over the 10.3 million subscribers it had a year earlier.

That growth will no doubt continue, especially as Netflix adds more exclusive content and more consumer electronics devices that subscribers can view the streaming service on. The company recently struck a deal for exclusive, first-run access to feature films from Hollywood production and co-financing firm Relativity Media. In addition, Netflix introduced an app for the Apple iPad at the tablet’s launch, and unveiled plans for an iPhone app coming soon. Altogether, Netflix expects to be on more than 100 consumer electronics devices by the end of the year.

Netflix Set to Stream Movies and TV Episodes in Canada Later This Year (http://www.mediacastermagazine.com/issues/story.aspx?aid=1000379116)

Netflix, the online Internet movie subscription service, is coming to Canada.

Beginning this fall, the portal will offer unlimited streaming movies and TV episodes, delivered to a user's TV or pesonal computer. Other digital media devices, capable of streaming from Netflix, can be used, and the company reports it is planning an iPhone compatible release this summer.

In April 2010, the Netflix application debuted on the Apple's iTunes app store for use with the iPad. Netflix has launched an Application Programming Interface, allowing developers to release Netflix applications for portable digital media devices including one for the Android platform and for Nokia handsets.

The new Canadian site will mark the first availability of Netflix outside the United States, and Canada will also mark the first streaming-only service promoted by Netflix.

At the time of launch, the Netflix Canadian service will be available in English only, but the company says it expects to add French language capability over time.

For a fixed monthly fee, Netflix members can watch unlimited TV episodes and movies streamed to their TVs and computers, but it appears the company will not offer its mail order movie subscription service here.

Among the large and expanding base of U.S. devices that can stream movies and TV episodes from Netflix right to members' TVs are Microsoft's Xbox 360, Sony's PS3 and Nintendo's Wii consoles; Blu-ray disc players from Samsung, LG and Insignia; Internet TVs from LG, Sony and VIZIO; the Roku digital video player and TiVo digital video recorders, and Apple's iPad tablet.

Redbox Plots Web Strategy in Challenge to Netflix

uly 19 (Bloomberg) -- Redbox, which became the fastest- growing U.S. video retailer with DVD kiosks and a $1-a-day rental price stores couldn’t match, is developing an online strategy to stay competitive with larger rival Netflix Inc.

The company, the biggest division of Coinstar Inc., may use a Web service to expand its library beyond the 200 or so titles crammed into each of its 24,000 or so DVD dispensers, President Mitch Lowe said in an interview from Redbox’s headquarters in Oakbrook Terrace, Illinois.

“The way we look at it is, How can it help us deliver to our customers things we can’t do in our kiosks?” Lowe said. “What role might it play in expanding our selection?”

The approach Redbox outlines in October will be designed to narrow the gap with Netflix, which offers more than 100,000 titles by mail and 20,000 older films online. It may also help the company take more business from Blockbuster Inc., which is closing stores and recently skipped a debt payment.

“It’s absolutely imperative for them to have a digital story,” said Ralph Schackart, a New York-based analyst with Wiliam Blair & Co. “The question is, what will it look like?”

The transition won’t be easy. Redbox may look to a technology company such as Sonic Solutions Inc. to obtain know- how, said Schackart, who expects shares of Bellevue, Washington- based Coinstar to perform in line with the broader market over the next 12 months.

Online Imperative

Convenience and a low price have created a winning formula for Redbox, which lets shoppers rent discs by swiping a credit or debit card. Sales from dispensers located in and outside of grocery and convenience stores surged 70 percent in the first quarter. Technicians in Redbox’s offices monitor the machines, which hold multiple copies of films and up to 630 DVDs, for jams and other troubles, making sure people don’t leave angry.

At the same time, rivals led by Netflix are attracting millions of Web customers with larger selections and cutting out the need for stores.

Redbox is losing some business as renters use kiosks to get new releases and go to Netflix for older, harder-to-find titles, said Lowe, who left Netflix in 2002. His former employer, based in Los Gatos, California, increased first-quarter sales by 25 percent with its $8.99-a-month subscription for mail-order rentals and unlimited Web viewing.

Steve Swasey, a Netflix spokesman, declined to comment on Redbox’s plans. More than half of the company’s 14 million customers used the Web to watch films on TVs or other devices.

“Long before we had streaming we had a loved brand and we turned it into an even more loved brand with streaming with no additional cost,” Swasey said.

Save Time, Money

Redbox also faces competition from Apple Inc. and Best Buy Co., which sell movie downloads. Wal-Mart Stores Inc., the world’s largest retailer, bought the Vudu Inc. online entertainment service in February and Sears Holdings Corp., the largest department store owner, said on June 22 it plans to sell and rent movies online through an agreement with Sonic.

An accord with Novato, California-based Sonic would spare Redbox the time and cost of negotiating Web rights with studios, Schackart said. Sonic technology is already in DVD players and TVs, and the company has rights to thousands of movies.

“Sonic gives Redbox a digital olive branch with the studios,” Schackart said.

Sonic provides technology and a library of about 20,000 movie titles to clients including Best Buy and Sears, Chris Taylor, a company spokesman, said in an interview. He declined to say whether Sonic is in talks with Coinstar, which also won’t comment on the matter.

Legal Battles Ended

Redbox ended legal battles this year with three studios, News Corp.’s Fox, General Electric Co.’s NBC Universal and Time Warner Inc.’s Warner Bros., over access to DVDs. The studios agreed to sell discs to Redbox for rental after the movies had been in stores for 28 days.

Walt Disney Co., Viacom Inc.’s Paramount Pictures, Sony Pictures Entertainment and Lions Gate Entertainment Corp. let Redbox offer DVDs when they become available for sale in stores.

While North American DVD purchases tumbled the past three years, rentals are expanding and are projected to rise at an average rate of 2.7 percent to $9.97 billion by 2014, helped by higher-priced Blu-ray discs, Matthew Lieberman, an analyst with PricewaterhouseCoopers, said in an interview.

The growth means Redbox will continue to attract consumers, Lowe said.

Redbox, and its $1-a-night price, began in 2002 as a test by McDonald’s Corp. to lure diners into restaurants, according to the Redbox website. Coinstar invested three years later and bought out McDonald’s in 2009.

...

DECE unveils UltraViolet (http://www.variety.com/article/VR1118021929.html?categoryid=13&cs=1)

Digital locker to roll out later this year

Just when consumers have gotten used to Blu-ray, they're about to be introduced to a new entertainment brand: UltraViolet.

That's the name the Digital Entertainment Content Ecosystem (DECE), a consortium of the major studios, retailers, cable operators, hardware manufacturers and rental services, have decided on to represent an online content locker that will initially store and play movies and TV shows on a variety of devices.

The UltraViolet name and associated cube-shaped purple and black logo will begin appearing on various packaging and websites over the next several months.

Although the digital locker won't officially roll out until later this year -- no official date has yet been given -- DECE wanted consumers to become familiar with the UltraViolet name so that retailers could start educating them on the service's capabilities.

"Our goal is to firmly establish UltraViolet as the symbol for digital entertainment -- one that gives consumers the freedom of access wherever they are, the confidence of knowing how it will work and the most choice of content, stores and devices," said Mitch Singer, DECE president and chief technology officer of Sony Pictures Entertainment.

Yet UltraViolet could become a much trickier sell than Blu-ray, given the fact that it won't represent anything physical at all.

Instead, the name will serve as the free online account where consumers access and manage entertainment they've purchased. The website will display the digital rights locker and films from every retailer that supports UltraViolet and DECE's single file format and allow the titles to be played on any hardware, including web-connected TVs, cable set-top boxes, computers, videogame consoles and smartphones.

DECE is made up of 55 members, which pretty much covers most major entertainment suppliers and device manufacturers, with the exception of Disney and Apple, which are developing their own similar digital locker branded as KeyChest for now.

DECE's technology also was designed to store music, books and games, and could eventually serve as a way for consumers to upload Blu-ray movies they already own.

And while it will launch with purchases, the open system is adaptable for video-on-demand and subscription-based rental services from companies such as Netflix, as well.

The entertainment biz has recently been making more aggressive moves toward this way of managing entertainment, believing that a single file format and one place to store and access it, no matter which retailer sold the content, will boost sales of home entertainment overall.

"We believe that UltraViolet will provide consumers with an easy-to-use way to buy and watch digital entertainment across multiple devices," said Thomas Gewecke, president of Warner Bros. Digital Distribution. "Making interoperability possible meets a key consumer need and fundamentally improves the digital video experience. With UltraViolet, consumers will be able to purchase a title once and enjoy it anywhere and anytime they wish."

Until now, digital entertainment has been distributed using a variety of formats, creating headaches for both hardware makers and consumers trying to manage and play the files. One common file format is expected to reduce backend technology costs for companies, as well.

DECE's members found that the various formats actually turned many consumers away from making more online purchases.

"Digital distribution was broken," Singer said. "People weren't buying as much anymore. We said, 'What would it look like if we started from scratch?'"

DECE will start working with retailers and service providers on the technological aspects of UltraViolet over the next several months and begin beta testing the rest of the year before it's eventual launch.

DECE will continue as a consortium, but UltraViolet will serve as the consumer brand. It operates on a cost-recovery basis and is not seeking to generate profits from the retail transactions.

The organization hired Lexicon, a brand-name firm, to come up with a number of name suggestions before UltraViolet was finally chosen. The firm was also behind Pentium, BlackBerry and Swiffer. It helped that UltraViolet's association with light pairs up well with the Blu-ray brand.

And with Hollywood looking for a bright light to reverse a dark downturn in homevideo sales over the last several years, the UltraViolet name couldn't be more fitting.

UltraViolet Press Release:

Digital Entertainment Content Ecosystem Unveils UltraViolet™ Brand (http://www.businesswire.com/portal/site/home/permalink/?ndmViewId=news_view&newsId=20100719006854&newsLang=en)

LOS ANGELES--(BUSINESS WIRE)--The Digital Entertainment Content Ecosystem LLC (DECE LLC), a cross-industry consortium dedicated to driving a new, open market for digital content distribution, today announced its consumer brand – UltraViolet™ – and logo (www.uvvu.com). UltraViolet represents a new way for consumers to have greater choice, confidence and freedom in how, when and where they enjoy digital movies, TV shows and other entertainment. In addition, the consortium announced three additional new members bringing the total to nearly 60 member companies.

Complementing the physical DVD and Blu-ray home entertainment markets, UltraViolet will allow consumers to watch their digital entertainment across multiple platforms, such as connected TVs, PCs, game consoles, smartphones and tablet PCs, in an easy, consistent way. Since all UltraViolet offerings will work together, consumers will be able to select which products and devices they prefer from a spectrum of familiar companies – ranging from major studios to consumer electronics companies to cable, web and other service providers. In addition, the UltraViolet name and logo will help identify entertainment products and services designed to work together seamlessly.

“The introduction of the UltraViolet brand is another important step towards the consumer launch of UltraViolet products and services,” said Mitch Singer, DECE president and CTO of Sony Pictures Entertainment. “Our goal is to firmly establish UltraViolet as the symbol for digital entertainment – one that gives consumers the freedom of access wherever they are, the confidence of knowing how it will work and the broadest choice of content, stores and devices.”

The UltraViolet experience will be powered by a cloud-based UltraViolet Account, which will include a Digital Rights Locker and account management functionality. Consumers will be able to create an UltraViolet Account, free of charge, via one of the many participating UltraViolet service providers or through the UltraViolet website. Once created, this Account will allow consumers to easily access and manage all of their UltraViolet entertainment, regardless of where it was purchased.

Technical specifications and licensing details for companies who wish to offer UltraViolet content, services and devices, are expected this year.

DECE also announced the addition of LG Electronics, LOVEFiLM and Marvell Semiconductor, Inc. to the consortium. These companies join DECE’s already strong group which include world leaders across a wide range of industries.

About Digital Entertainment Content Ecosystem (DECE) LLC

The Digital Entertainment Content Ecosystem (DECE) LLC is a cross-industry initiative developing the next generation digital media experience based on open, licensable specifications and designed to create a viable, global digital marketplace. The DECE is currently made up of Adobe, Alcatel-Lucent, Ascent Media Group, Best Buy, Blueprint Digital, BT, CableLabs, Catch Media, Cineplex Entertainment, Cisco, Comcast, Cox Communications, CSG Systems’ Content Direct, Deluxe Digital, DivX, Dolby Laboratories, DTS, ExtendMedia, Fox Entertainment Group, HP, Huawei, IBM, Intel, Irdeto, LG Electronics, Liberty Global, Lionsgate, LOVEFiLM, Marvell Semiconductor, Inc., Microsoft, MOD Systems, Motorola, Movie Labs, Nagravision, NBC Universal, NDS, Netflix, Neustar, Nokia, Panasonic, Paramount Pictures, Philips, Red Bee Media, RIAA, Rovi, Roxio CinemaNow, Samsung Electronics, Secure Path, Sony, SwitchNAP, Tesco, Thomson, Toshiba, Verimatrix, VeriSign, Warner Bros. Entertainment, Widevine Technologies Inc. and Zoran. DECE’s new digital media specifications, logo program and interoperable digital rights locker will enable consumers to purchase digital video content from a choice of online retailers and play it on a variety of devices and platforms from different manufacturers.

What DECE member companies are saying about UltraViolet:

ADOBE

“Adobe is pleased to participate in the introduction of the UltraViolet brand and support the creation of a seamless consumer experience around premium digital content. DECE’s adoption of Adobe Flash Access ensures that content providers can rely on the Flash Platform for secure distribution and playback of UltraViolet content. While this enables new revenue streams for all participants, the ultimate winner is the consumer who gains access to a seamless entertainment experience.” – Florian Pestoni, principal product manager for Rich Media Solutions at Adobe

BEST BUY

“We are proud to be a founding member of DECE and are committed to educating consumers about the ever-changing world of digital entertainment. By bringing forward the Ultraviolet brand, we will continue to advocate choice in how and where consumers choose to view their content in addition to instilling confidence in an easy-to-access system compatible across a wide array of devices.” – Chris Homeister, senior vice president and general manager, home entertainment group for Best Buy

COMCAST

“We believe UltraViolet will provide a tremendous opportunity for even more choice and control by giving consumers the ability to view content from anywhere on many devices,” said Mark Coblitz, senior vice president of Strategic Development for Comcast Corporation. “There is no other offering that affords such an open platform to deliver the wealth of digital entertainment choices.”

INTEL

“Intel is pleased to contribute to the development of the exciting new UltraViolet ™ digital media experience. UltraViolet will bring consumers a new level of choice and confidence with the freedom to enjoy their media on all of their family’s devices, including PCs, smart phones, netbooks, tablets, game consoles, and connected TVs, regardless of where it was purchased,” noted Jeff Lawrence, Intel director of Global Content Policy.

MICROSOFT

“Microsoft is committed to working towards digital entertainment solutions that delight consumers. As a founding member of DECE, Microsoft is furthering that goal by enabling consumer choice and confidence in digital entertainment,” said Blair Westlake, corporate vice president of the Media & Entertainment Group of Microsoft Corporation. “UltraViolet is designed to provide consumers with greater options and ease-of-use for digital entertainment, which it delivers by bringing innovation and efficiency to the entertainment industry.”

NEUSTAR

“UltraViolet’s™ ‘Digital Locker’ will be intuitive and incredibly easy-to-use, and Neustar is delighted – and well-suited – to be developing the UltraViolet digital media experience,” said Tim Dodd, vice president of Media and Entertainment for Neustar. “There is a great deal of complexity that underlies the brand’s revolutionary promise of openness and interoperability, and Neustar is fully committed to bringing this promise to fruition for the benefit of all digital media consumers.”

SONIC SOLUTIONS

“Sonic’s extensive involvement in DECE and our contributions in helping bring UltraViolet to market are a vital component of supporting our retail partners’ digital businesses,” said Dave Habiger, President and CEO, Sonic Solutions. “We will continue to align our RoxioNow platform with DECE and prepare for early implementation of UltraViolet specifications to help take digital delivery mainstream and meet consumers’ expectations for convenience, ease, and flexibility.”

SONY PICTURES HOME ENTERTAINMENT

"UltraViolet marks the beginning of a new era for consumers to access and engage with their entertainment across a variety of devices. Through the advent of a digital locker, UltraViolet provides a new perspective on the value of collecting both physical and digital media." – David Bishop, president, Sony Pictures Home Entertainment.

WARNER BROS.

“We believe that UltraViolet will provide consumers with an easy-to-use way to buy and watch digital entertainment across multiple devices,” said Thomas Gewecke, president of Warner Bros. Digital Distribution. “Making interoperability possible meets a key consumer need, and fundamentally improves the digital video experience. With UltraViolet, consumers will be able to purchase a title once, and enjoy it anywhere and anytime they wish.” http://tess2.uspto.gov/ImageAgent/ImageAgentProxy?getImage=77833600
http://tess2.uspto.gov/ImageAgent/ImageAgentProxy?getImage=77859930

New Netflix Streams Are Child’s Play (http://newteevee.com/2010/07/27/new-netflix-streams-are-childs-play/)

Hey parents — you may no longer have to shell out money for DVDs to keep your kids entertained, as long as you have a Netflix subscription. By adding a wealth of childrens’ content to its instant streaming service, the subscription video company is going after the next generation of online video viewers today, with new streaming titles from Nickelodeon, PBS and Disney.

Just by clicking on its “New TV Shows” selection, instant streaming users will see that Netflix’s addition of new streaming titles clearly meant to appeal to younger audiences. The section includes a vast collection of kid-friendly titles, including PBS’ Barney, Kipper and Thomas & Friends, as well as Nickelodeon’s Blues Clues, Wonder Pets, Dora the Explorer, Spongebob Squarepants, Fairly Odd Parents, Hey Arnold! and Drake & Josh. For slightly older kids, the new titles also include Disney’s Hannah Montana and Jonas L.A..

Adding kid-friendly titles will be a boon to parents, especially to those who have Netflix streaming content available in the living room through connected TVs, Blu-ray players, game consoles or broadband set-top boxes. Those parents will no longer be subject to the whims of PBS or Nickelodeon’s scheduling, or have to purchase DVDs of their kids’ favorite TV shows to keep them happy.

The addition of kids’ content is also a coup for Netflix, which is trying to differentiate itself from a recently announced subscription service from Hulu Plus, which like Netflix, aims to make TV content availability on PCs and connected devices for a low monthly subscription fee. But while Hulu’s service is limited mostly to content from its broadcast TV parents and content partners, Netflix has been writing checks to license cable TV programming.

On the company’s earnings call, Netflix CEO Reed Hastings admitted that he saw Hulu as a direct competitor. And in his management commentary of second-quarter results, Hastings said that the company would add a mix of exclusive and non-exclusive TV content to bolster interest in the streaming service, in a move that seems to be aimed at countering the emerging threat from Hulu.

NCR at Kiosk Crossroads? (http://www.homemediamagazine.com/kiosk/ncr-kiosk-crossroads-20152)

With nearly two-thirds of its planned 10,000 Blockbuster Express rental kiosks allocated, NCR Corp. appears uncertain whether to increase the install base or focus on alternative distribution channels for home entertainment.

Duluth, Ga.-based NCR is funding the rollout and fulfillment (acquisition of DVD titles) for Express kiosks through a license deal with Dallas-based Blockbuster.

During a financial call with investors last week, CEO Bill Nuti said he would not look beyond implementation of the remaining 3,500 Express kiosks nationwide as to whether the company would increase its involvement in DVD rental kiosks or related entertainment.

“The hurdle rates get higher over time from our perspective because we do feel strongly that other channels to market going forward might be better investments for the company,” Nuti said. “But we’re not going to make that determination until we get towards the end this year. Right now, we’ve got to get 10,000 done and 10,000 put in the right places.”

Indeed, NCR is deploying 100 to 200 Express kiosks on a weekly basis, with an emphasis on retail location rather than market penetration. Industry leader Redbox has deployed more than 22,000 kiosks with plans to deploy another 3,000 units.

“If we wanted to, we could ramp up faster, but right now it’s about making smart choices on deployment,” Nuti said.

In the quarter, NCR rolled out Express kiosks — many replacing non-renewed Redbox units — at more than 300 Kwik Trip convenience stores in the Midwest, 105 Tom Thumb and Randalls locations in Texas, 80 Xtra Mart stores in the Northeast and 100 Mapco Express locations in the South.

NCR said it expects to generate pre-tax earnings (EBITDA) on Express kiosks by the fourth quarter, in addition to $25 million to $35 million EBITDA in 2011.

Nuti said he expects negotiations with studios regarding revenue-sharing agreements to conclude this summer, and would likely not preclude 28-day delays (windows).

CFO Bob Fishman said distribution agreements with studios involve more than windows, including factoring in technology costs and sellthrough initiatives such as downloads.

“We are looking at the total automated retail offering in the industry, and what does a retail store look like in the future versus what does it look like today?” Fishman said. “That’s why it includes more than just rental.”

Specifically, NCR is exploring expanding distribution of digital content via streaming, a channel currently controlled by Netflix, with Redbox eyeing a streaming initiative in the fourth quarter. The company said it would likely commence alternative distribution channels (including securing content digital rights) through the Blockbuster brand.

“We’re looking at the core investments of what it is we need to do to deliver it into a portable format,” said EVP John Bruno. “Then we will make investments as we see the market unfold. We see that’s going to be a market that’s going to continue to grow and have pretty deep technical demands.”

Nuti said he expects Express kiosks would continue should Blockbuster file for bankruptcy, saying NCR would maintain its business strategy with whoever emerged as holder of Blockbuster’s assets.

The executives’ comments were made before this week’s departure of Alex Camara, SVP and GM of NCR Entertainment.

Edward Woo, analyst with Wedbush Morgan Securities in Los Angeles, said apprehensive comments from NCR executives regarding the DVD kiosk business have been ongoing.

“Replacing their entertainment division head indicates they are not bullish (like Redbox), and it may be a signal that they are going to significantly slow down DVD investment in 2011,” Woo said.

NCR Entertainment contributed to NCR’s Americas segment generating $117 million in second-quarter (ended June 30) operating income, up 17% from operating income of $100 million during the previous-year period. The segment posted revenue of $515 million, compared with revenue of $505 million last year.

Overall, NCR reported income of $31 million, compared with income of $23 million last year, on revenue of nearly $1.2 billion, up from revenue of more than $1.1 billion last year.

Hisense to Utilize Widevine Adaptive Streaming and DRM in Connected TVs (http://www.marketwire.com/press-release/Hisense-to-Utilize-Widevine-Adaptive-Streaming-and-DRM-in-Connected-TVs-1299775.htm)

Widevine's Video Optimization and Digital Rights Management Will Be Included on Hisense Televisions for the Highest Quality Viewing Experience on Content Delivered Over-the-Top

SEATTLE, WA and QINGDAO, CHINA--(Marketwire - August 4, 2010) - Widevine, a provider of digital entertainment solutions, announced today that Hisense Electric Co., Ltd., the number one TV company in China, will include Widevine's adaptive streaming, virtual DVD-like controls, and DRM solution on their Internet-connected televisions. This will enable Hisense to offer their customers the highest-quality viewing experience on content delivered over-the-top.

Hisense is the top LCD TV brand in China and has maintained that position for the past seven years. It exports to over 130 countries and regions throughout the world and holds nearly 30 percent of the LED TV market in China as of the first half of 2010. By incorporating Widevine's video optimization and DRM platform, telecom, cable, satellite, and Internet providers will be able to deliver a high-quality over-the-top experience directly to Hisense TVs.

"We pride ourselves on offering our customers televisions that employ the latest technology, and including Widevine's video optimization capabilities and DRM into our products is in line with this philosophy," said Jian Huaigang, Vice General Engineer of Hisense Electric Co. Ltd. "In doing so, customers can enjoy content from service providers and the Internet alike on their Hisense televisions, whenever they choose to. Not only does this provide a high-quality viewing experience for them, it also strengthens our brand and allows us to retain our leading market position."

Widevine's video optimization and DRM technologies are utilized by major Internet content services and large cable, satellite, and telecommunication companies launching TV Everywhere strategies. The company's software platform optimizes the entertainment experience for live and on-demand content delivered over any network to any device. The solution is natively supported in nearly all types of network-connected consumer electronics including televisions, Blu-ray players, mobile devices, gaming systems and more.

"The race is on for service providers to get their content to as many devices as possible. Widevine's solutions ensure that consumers will receive the highest quality viewing experience possible on premium content delivered over the Internet directly to connect Hisense televisions," said Brian Baker, Widevine CEO. "We are excited to help Hisense enable these services on their lineup of connected TVs."

From April 2009 (http://www.smarthouse.com.au/TVs_And_Large_Display/LCD/N4H9U9N6):
Another problem for Sony is that because of their financial woes, the company has been forced to turn to OEM manufacturers to make their Bravia LCD TV's. Among the companies now being used by Sony to manufacture the bottom end Bravia Full HD TV's is Hisense, a Chinese manufacturer who manufactures over 10 million, LCD TV's a year for various brands.

Netflix and Epix working on major digital partnership to shake up pay TV landscape (http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/08/netflix-and-epix-working-on-major-digital-partnership-to-shake-up-pay-tv-landscape.html)

In a deal that could transform the landscape for digital movie distribution, start-up pay-TV channel Epix is in serious negotiations to give Netflix exclusive online rights to films from its three equity partners -- Paramount Pictures, Lionsgate and Metro-Goldwyn-Mayer.

The five-year arrangement would allow Netflix subscribers to watch movies such as "Iron Man 2," "Dinner for Schmucks" and this week's release "The Expendables" via the company's Internet streaming service, according to several people familiar with the situation.

The people noted that there are still outstanding issues that must be resolved before the deal can close.

Netflix is expected to pay Epix close to $1 billion in licensing fees over the life of the deal, bringing the channel closer to its goal of breaking even by 2011. Earnest discussions have been ongoing for several months.

The agreement would make Netflix, best known for its DVD-by-mail business, a potentially formidable competitor to Time Warner's dominant pay channel Home Box Office, which has movies from Warner Bros., 20th Century Fox and Universal Pictures. As more people watch Internet content on their televisions, Netflix has been investing huge amounts of money to acquire content for its streaming video service. It already has a deal with Liberty Media's pay channel Starz, which brings it movies from Walt Disney Studios and Sony Pictures. Netflix also recently acquired exclusive pay-TV window rights for films produced by Relativity Media.

Among the issues the two companies are discussing is when exactly Epix would allow Netflix to start streaming its movies. One person familiar with the matter said it would be at some point after Epix starts airing new movies, typically several months after they launch on DVD.

Epix, which launched last year amid doubts that there was room for another pay television channel, is currently carried on only a handful of smaller cable and satellite operators, such as Cox Communications, Charter Communications and Dish Network. In a recent interview, the channel's chief executive, Mark Greenberg, said he expects to reach between 3 million and 4 million television subscribers this summer. The new deal would immediately make his company's movies available to 15 million Netflix subscribers, 61% of whom have previously used its online service.

However, major cable carriers such as Comcast Corp. may be put off by the partnership, which would make paying to subscribe to Epix's channel less appealing to the Netflix users. Epix and its partner studios have apparently concluded that they are willing to make a big bet on the digital future by partnering with content-hungry Netflix.

On a recent call with Wall Street analysts, Netflix Chief Executive Reed Hastings said his company is "investing aggressively in streaming content because of the clear benefits to the business," citing the opportunity to attract more subscribers and spend less on postage to ship DVDs.

A partnership with Netflix is not expected to impact Epix's own online video streaming service.

A person familiar with the matter said the agreement would allow Paramount, Lionsgate and MGM to sell and rent their movies via digital stores such as Apple Inc.'s iTunes, a privilege that HBO doesn't give its studios.

Greenberg did not immediately return a call for comment, nor did a spokesman for Netflix.

Netflix and Epix working on major digital partnership to shake up pay TV landscape (http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/08/netflix-and-epix-working-on-major-digital-partnership-to-shake-up-pay-tv-landscape.html)

Its been officially confirmed now. Starts sept 1 with a 90 day window on movies.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/08/epix-and-netflix-confirm-digital-distribution-partnership.html

I will be curious to know if netflix gets everything epix has or if it will be a selection of stuff from them, if tv series will be included, and if they will have HD from the start. I would assume it will be the complete epix library and will be HD (don't know why they would make a deal these days w/o HD content)

Really hoping surround sound comes soon as well.

Great news!

Its been officially confirmed now. Starts sept 1 with a 90 day window on movies.

http://latimesblogs.latimes.com/entertainmentnewsbuzz/2010/08/epix-and-netflix-confirm-digital-distribution-partnership.html

I will be curious to know if netflix gets everything epix has or if it will be a selection of stuff from them, if tv series will be included, and if they will have HD from the start. I would assume it will be the complete epix library and will be HD (don't know why they would make a deal these days w/o HD content)
So Netflix will get the new content about 5-6 mos after home video release.

So Netflix will get the new content about 5-6 mos after home video release.With Netflix's current pricing that appears to be the sweet spot. Any newer and I think you'll have to have different pricing plans in place. If and when that happens it will get interesting. First DVD, Blu-ray, PPV, Premium Channels and finally Streaming. With the current pricing structures can you expect anything else?

With Netflix's current pricing that appears to be the sweet spot. Any newer and I think you'll have to have different pricing plans in place. If and when that happens it will get interesting. First DVD, Blu-ray, PPV, Premium Channels and finally Streaming. With the current pricing structures can you expect anything else?

At a flat rate per month, no, you can't really expect any earlier.


"(1)First DVD, Blu-ray, PPV, (2)Premium Channels and finally (3)Streaming."

Some PPV is actually becoming available on theatrical release date, Comcast has some sort agreement with someone to make that happen.

What I'd really like to see Netflix do is increase the video quality of their encodes and add 5.1 audio.

Some PPV is actually becoming available on theatrical release date, Comcast has some sort agreement with someone to make that happen.Mark Cuban is still doing this with HDNet Movies. Last one I caught was The Extra Man.

http://www.hd.net/movies_sneakpreviews.html

If there's any truth to the below article it certainly makes the EPIX/Netflix deal a non-event for me.

Netflix's Deal With EPIX Adds Less Than 300 Movies, None In HD (http://blog.streamingmedia.com/the_business_of_online_vi/2010/08/neflixs-deal-with-epix-add-less-than-300-movies-none-in-hd.html)

If there's any truth to the below article it certainly makes the EPIX/Netflix deal a non-event for me.

Netflix's Deal With EPIX Adds Less Than 300 Movies, None In HD (http://blog.streamingmedia.com/the_business_of_online_vi/2010/08/neflixs-deal-with-epix-add-less-than-300-movies-none-in-hd.html)

Well, based on the price the deal is supposedly worth, I don't think it's only 300 movies. I tend to agree with the second and third comments (1 is that EPIX has a lot more movies, but probably not all encoded) and that the guy doesn't know how to count since the guy counted 300 movies and there's 1527 listed (yes, I put the list into Excel so I could count) and HackingNetflix says the deal is for around 3000. And nobody other than this guy has said they won't be HD, AFAIK.

I will wait and see. Basically that article is just FUD.

EDIT: Just realized this was the "news" thread. Sorry. Shouldnt' be cluttered up with this kindof discussion.

LA Times:

Google TV undergoes a trial by partisans (http://www.latimes.com/business/la-fi-google-tv-lab-20100818,0,6581112.story)

Four hundred Google employees, including the woman who will run its marketing campaign, have been testing the Internet giant's effort to marry broadcasting and the Web. The big question is whether outsiders will embrace it.

Brittany Bohnet and fiancé Dave Morin used to plop in front of the television in their San Francisco living room with a smart phone in one hand and the remote control in the other, computers resting in their laps as they switched their attention from screen to screen.

But with Google TV, the young couple can watch the latest episode of AMC's "Mad Men," check updates from friends on Facebook and on Flickr show off photos of Morin's marriage proposal (in a seaplane over a Maldives beach where he had spelled out the question in coconuts on the sand) — all on one screen.

We have gone from hundreds of channels to millions of channels," Bohnet said. "You can build your own TV experience."

Bohnet, 25, who runs the marketing campaign for Google TV, is one of 400 Google Inc. employees who have been testing Google's latest venture. Morin, a 29-year-old Internet entrepreneur, is already sold. He believes people will spend even more time in front of their televisions and with each other.

"This is going to be one of those things that people talk about," he said. "People don't get what the possibilities are."

It will be Bohnet's job to coax the rest of the world to get them. Not everyone will be as easy to convince as Morin. The real test of the Internet giant's high-stakes gamble to bring the Web to TV comes this fall when the first Logitech International set-top boxes and Sony high-definition television sets and Blu-ray players that run Google TV software land on store shelves.

Google will have to persuade the television audience that so far has shown little interest that they should hook up another set-top box to their televisions or pay a premium to buy a new TV set that runs on Google's software.

The technology company better known for its ubiquitous search engine will also have to entice manufacturers other than Sony to make Google televisions and retail chains other than Best Buy to sell them. And it must succeed where others have struggled. Boxee Inc., Roku Inc. and TiVo Inc. all make devices that offer Internet video on TV and have yet to gain mainstream traction.

Even Apple's set-top box, which plugs into a TV to allow viewers to watch movies and shows through iTunes, has stirred little excitement. Analysts say Apple will probably revamp its product and reduce the price to $99 from $229 to take on Google TV. Apple declined to comment on its plans.

Bohnet believes television is ready for a major makeover: No one wants a computer or phone without a browser these days, she says. Why would they want a TV without one?

Google TV gives you a home screen that you can personalize with your favorite shows, channels or websites. It includes a browser and search box to explore the Web and the TV programming lineup. Bohnet can even give her Android or iPhone the voice command, "Friends," and within seconds it dispatches a search query to the television to find the show's episodes.

A queue organizes and saves programs Bohnet has recorded and video podcasts she wants to watch. An on-screen guide offers her viewing options by category, say comedies or news programs. If she finds something interesting on her smart phone, she can "fling" it (Google's terminology for sharing something with the TV) and watch it there.

Her friends no longer have to hunch over a laptop to show each other spoof movie trailers on YouTube.com; anyone with an Android or iPhone has a remote control to her TV at their fingertips. Google TV also makes multitasking easier with a picture-in-picture feature: Bohnet can watch the New York Yankees play the Texas Rangers while browsing baseball statistics on the Web.

Bohnet said she's already looking forward to sharing television with friends (think text and video chat on the TV screen while watching "American Idol" with a friend in another location, for example). As for other features, she's banking on the ingenuity of software developers who have helped drive the success of Android smart phones and Apple's iPhone. Many of the 50,000 applications in the Android store will work on Google TV beginning early next year. That's when Google will release the software developer's kit so that developers can begin to roll out applications created for Google TV, Bohnet said.

These applications may help deliver the long-held promise of interactive television, Bohnet said. A prime example is Shazam, an application for smart phones. Not sure what that song is playing on TV? Hold your smart phone near the set for about 30 seconds and Shazam identifies the song and its artist. Shazam then remembers the song and offers you a chance to buy it or play the YouTube video if one's available.

"We don't even know what developers are going to do," Bohnet said.

Businessweek:

As Streaming Prices Drop, a Bet on High-Def (http://www.businessweek.com/magazine/content/10_34/b4192038586570.htm)

Open a video on ESPN.com or Hulu and there's a good chance Akamai Technologies' (AKAM) software and servers are working behind the scenes. The company is the leader in the booming business of helping websites stream content. Researcher comScore (SCOR) estimates that people watched 35.7 billion online videos in June in the U.S., up from 19.5 billion a year earlier. Akamai and its competitors will have sales of about $600 million from online video this year, up 20 percent from 2009, estimates research firm Frost & Sullivan.

Akamai was the best-performing stock in the S&P 500 this year up to July 28, climbing 74 percent.

That's when investors did a U-turn, sending Akamai down by 13 percent over two days. The reason: Akamai said its second-quarter margin before interest, taxes, depreciation, and amortization had dropped 2 percentage points from a year earlier, to 46 percent, and could thin even more next quarter. (Akamai's stock has bounced back 11 percent since July 29, and is No. 2 on the S&P year to date.)

The narrower margin came from increased spending on equipment and new hires, and falling prices. Website owners typically pay Akamai based on the volume of digital content, measured in gigabytes, called up by users. The average price websites pay to stream video fell 40 percent to 45 percent in 2009 and is on track to decline another 25 percent this year, estimates Frost & Sullivan. The causes of the drop are Moore's Law—the number of transistors on a chip doubles every 18 months, making computers cheaper and more powerful over time—and competition. Once the only significant player in delivering online video, Akamai has faced increased pressure from newer entrants such as Level 3 Communications (LVLT) and Limelight Networks (LLNW), says Frost & Sullivan analyst Dan Rayburn. Delivering online video "is becoming much more of a commodity business," says Jim Louderback, CEO of video site Revision3, which uses Akamai competitor BitGravity to stream shows it produces over the Web.

Paul Sagan, Akamai's chief executive officer, says price wars don't mean commoditization. "I don't agree there is a fundamentally new pricing dynamic," he says. "Unit prices fall every year as volumes grow. If this were a mature, saturated business that would be a concern. We're at about 1 percent of the opportunity that has been tapped."

The most promising area of growth, Sagan says, may be high-definition video, which has just started arriving on PCs. About 7 percent of all videos watched on the Web are in high-definition, up from 3.5 percent last year, according to researcher IDC, and by 2014 one-third of all online video will be HD. Frost & Sullivan says Akamai charges a customer like Netflix about 5 cents for an HD movie, compared with about 3 cents for standard definition. "We're right on the cusp of rapid adoption" of HD, Sagan says.

During this year's World Cup, Akamai delivered live feeds of soccer matches to the websites of two dozen broadcasters worldwide, including ESPN and the BBC. Sagan says most viewers opted for high def. HD "is almost a requirement at this point in the sports field," says Eric Black, director of digital operations for NBC Sports.

"The majority of major broadcasters used us to deliver the World Cup in HD," says Sagan. "To me, that's not the definition of a commodity at all."

LoveFilm Adds MGM Movie Library; Aims To Be More Than ‘Europe’s Netflix’ (http://paidcontent.org/article/419-lovefilm-adds-mgm-movie-library-aims-to-be-more-than-europes-netflix/)

LoveFilm, which is often regarded as the “Netflix (NSDQ: NFLX) of the Europe,” has struck a major deal with Metro-Goldwyn-Mayer Studios that gives its streaming rental service access to hundreds of classic movies and new home video releases. The deal comes as LoveFilm is trying to be seen as more than just a DVD renter, while MGM and other Hollywood studios are trying to make a real business out of online streaming.

Six-year-old UK-based LoveFilm’s big goal right now is to be seen as a general entertainment content provider, with its primary objective centered around being the go-to company for all things film. After that, it wants to be known for its game offerings. But like Netflix, the physical DVD is what brings in the money today and signing up MGM—and its 4,100 movies—will have immediate benefits as well as long-term advantages as digital streaming of movies becomes increasingly competitive.

LoveFilm has relied on major partnerships before. After it acquired Amazon’s DVD rental business in the UK and German markets over two years ago, Amazon (NSDQ: AMZN) subsequently became the company’s largest shareholder

Netflix debuts on the iPhone (http://news.cnet.com/8301-13579_3-20014759-37.html)

Netflix has hit the iPhone.

The popular video subscription service just updated its Apple app to support the iPhone and iPod Touch, which now join the iPad in offering streaming videos. Netflix members can download the free 1.1.0 version to watch their favorite TV shows and movies.

The Netflix app lets you access your Instant Queue to view videos you've already saved. You can browse by genre or search for specific titles from the service's growing library of streaming content. You can also stop a video and then resume where you left off, whether you're watching on your iPhone, your computer, or your game console.

To tap into this app, you must be a paying Netflix subscriber (plans start at $8.99 a month) or set up a free 30-day trial. On the mobile side, you need to be running iPhone OS 3.1.3 or later.

The app's debut on the iPhone is not unexpected. After launching its mobile version for the iPad in April, Netflix confirmed that it was working on porting the app to the iPhone and iPod Touch.

What's next for Netflix? The company may be prepping an Android version of its mobile app. Reports recently surfaced that Netflix is hiring an Android video playback expert to work on a new project.

Google plans pay-per-view films (http://www.ft.com/cms/s/0/e638714e-b396-11df-81aa-00144feabdc0.html)

Google’s YouTube video site is in negotiations with Hollywood’s leading movie studios to launch a global pay-per-view video service by the end of 2010, putting it head-to-head with Apple in the race to dominate the digital distribution of film and television content.

Google has been pitching to the studios on the international appeal of a streaming, on-demand movie service pegged to the world’s most popular search engine and YouTube, according to several people with knowledge of the situation.

Google will use its search technology and YouTube to direct viewers to the new service, which is likely to launch first in the US, with other countries added over time, the people added.

“Google and YouTube are a global phenomenon with a hell of a lot of eyeballs – more than any cable or satellite service,” said one executive with knowledge of the plans. “They’ve talked about how many people they could steer to this . . . it’s a huge number.”

Negotiations have been ongoing for several months, but have taken on greater urgency in recent weeks, amid intensifying competition between media and technology companies over the digital delivery of film and TV programming. Apple is this week expected to unveil improvements to its TV device, which connects living-room sets to the internet, and eventually hopes to open the device up to “apps” developers.

Netflix, the film subscription company, is aggressively acquiring digital rights to movies for its streaming service, while Hulu, the online video site owned by Walt Disney, News Corp and NBC Universal, is planning a $2bn initial public offering.

The Google project has caused excitement in Hollywood because film studios are searching for new revenues to replace DVD sales, which are in steep decline.

Viewers will stream rather than download the films and pay about $5 for newer titles. The movies would be available at the same time as their release on DVD and on Apple’s iTunes store and Amazon.com, meaning Google could count on recent box-office hits to power the service.

YouTube said it had been beta-testing a film rental service since January.

Google has been searching for a breakthrough with YouTube since acquiring the video site for $1.65bn in 2006.

YouTube attracts millions of users but continues to be best known for its user-generated content. Yet it has struck several content deals and in April launched a free movie service.

Wall Street Journal

Amazon Grabs the TV Remote (http://online.wsj.com/article/SB10001424052748703467004575463974031923594.html?mod=googlen ews_wsj)

Amazon.com Inc. is working on a new subscription service that would deliver TV shows and movies over the Internet, ramping up the battle among Web companies to control entertainment in the living room.

The Internet retailer has in recent weeks pitched a Web-based subscription service to several major media companies, including General Electric Co.'s NBC Universal, Time Warner Inc., News Corp. and Viacom Inc., among others, according to people with knowledge of the proposal.

Amazon's subscription push is a challenge to rivals such as Netflix Inc. and Google Inc. as they race to dominate digital delivery of TV shows and films, encroaching on turf traditionally controlled by cable- and satellite-television providers.

Apple Inc. is also pushing more deeply into TV, and plans to announce 99-cent rentals of television shows through its iTunes store from News Corp.'s Fox and Walt Disney Co.'s ABC as early as Wednesday, according to people familiar with the matter.

Apple wants to offer rentals of new shows, available after they air, these people said. Apple is also working on a new device that streams Internet video directly to television sets, according to one person with knowledge of the matter.

Amazon appears to be targeting a similar model to Netflix, focusing on older, "catalogue" content, according to people briefed on the meetings. Executives at media companies often view the availability of older content on the Web as less of a threat to their existing business.

Amazon's new subscription service would be viewable on a Web browser, or through devices such as Internet-connected TVs, Blu-ray players and Microsoft Corp.'s Xbox 360 videogame console. Amazon currently sells individual episodes of TV shows on those devices, often for $1.99 apiece. It also sells and rents digital movie downloads.

Media companies have been reluctant to put too much of their best content on the Internet for too little money. None want to be left behind as the Web merges with television. But they are also wary of encouraging a shift to Web-based viewing, which could lead consumers to cut off cable and satellite subscriptions.

For instance, Hulu LLC, owned by three media companies including Wall Street Journal parent News Corp., announced in June that it would make its Internet versions of new TV shows available on TVs and other devices—but only for subscribers who pay $10 a month.

Media companies will pull in more than $30 billion in 2010 from their cut of monthly TV bills, according to estimates from SNL Kagan.

Amazon has said it would like to launch its new service in time for the holiday season, one person with knowledge of the proposal said.

Executives for two media companies described Amazon deals as possibilities.

But it is possible the subscription service could be delayed or shelved if not enough companies sign on, these people and others said.

An Amazon spokesman said he couldn't "speculate about the future." Spokespeople for NBC Universal, News Corp., Viacom and Time Warner declined to comment.

Amazon could face an uphill battle matching Netflix. Some people familiar with the matter said Amazon executives had initially balked at what it would cost to license movies at rates paid by Netflix. The DVD-by-mail pioneer has been increasing its spending to secure programming for its Web-based service.

Netflix recently committed about $200 million a year for movies on cable channel Epix, according to people with knowledge of the deal. Epix is owned by three Hollywood studios.

Netflix has found a growing niche with online streaming. More than 61% of its 15 million subscribers watched for at least 15 minutes in the second quarter, up from 37% a year earlier, the company said in July.

Amazon, which began as an online retailer of physical media such as books and DVDs, is trying to shift those businesses to digital to keep up with shifting consumer habits. It has had most success with digital books, where its Kindle e-book reader helped to create a market for e-books by making it easy to buy and read them away from a computer.

Amazon brings some advantages to the television fight. In at least one version of its proposal, subscriptions could be bundled for no additional charge with its existing Amazon Prime service—immediately giving the service millions of built-in subscribers. Prime offers members cheaper shipping rates for many products in exchange for $79 a year.

Amazon's existing video-purchase and rental service, meanwhile, is already built into scores of devices. And the company's role as a major retailer of physical DVDs also could give it leverage to wrangle digital-licensing deals.

Financial Times

Sony rises to digital-media challenge (http://www.ft.com/cms/s/0/9f6bfffe-b537-11df-9af8-00144feabdc0.html)

Sony will begin its latest attempt to fight back against Apple’s dominance in the digital media field on Wednesday, when it unveils a new music and video subscription service to run across a range of its devices.

The announcement is expected to be made in Berlin at the IFA technology show, just hours before Apple’s own music-themed press conference in California, which is expected to include updates to its iPod, iTunes and Apple TV products.

Sources in the media industry told the Financial Times that Sony would use its PlayStation games consoles as the starting point for a new service that users will be able to use across a range of other internet-connected devices. That could include Walkman music players, Vaio computers, Bravia TVs, Blu-ray players and Sony Ericsson mobile phones.

Tens of millions of PlayStation3 and PlayStation Portable consoles are already connected to the internet, which allows them to download movies.

Howard Stringer, president of Sony, said last year that 90 per cent of Sony products would be able to connect to each other and the internet by 2011. Its $260m acquisition of Gracenote, a service which can track and identify music files across devices, in 2008 could play a significant role in the new service, which has been two years in the making.

The service is not expected to be available to consumers until next year, as deals are confirmed with all the major labels and studios.

Sony phased out its Connect music service in the US and Europe in 2007, leaving the way clear for Apple to consolidate its dominance in the digital download market. Since then Sony has used third- party providers to supply a digital download music service.

Content owners have been keen for a company with Sony’s scale and marketing power to counterbalance Apple’s dominance.

Apple is expected on Wednesday to introduce new social networking features to its iTunes software, allowing users to share details of the songs and movies they are buying and watching with friends on Twitter and Facebook.

Apple’s iTunes improvements will also include 90- second clips of songs, up from 30 seconds now, which will give potential buyers more grounds for deciding on purchases.

A new iPod touch, featuring the same high-resolution display that was debuted on the iPhone 4 earlier this year, is also anticipated. Apple is also likely to put out modest improvements to its Apple TV gadget, a set-top box that has sold poorly at $299, and perhaps cut the price to as little as $99.

Sony and Apple declined to comment.

The Hollywood Reporter:

Why Apple rental plan alienated most studios (http://www.hollywoodreporter.com/hr/content_display/news/e3i63f1a2fc43dfa74d4a929abc0da2c235)

Holdouts fear 99-cent price endangers business model

Don't look for rival studios to join Disney and News Corp. for Apple's announced 99-cent TV rental offering anytime soon.

Unveiling a new Apple TV product Wednesday, Steve Jobs said he had hopes for "other studios to see the light." But sources at other content companies believe Disney and Fox are moving like moths to a flame.

At issue is the 99-cent price tag that represents a steep discount from the TV episodes already offered on iTunes. Multiple executives described it as an unacceptable devaluation of the content that puts in jeopardy the so-called "downstream" windows crucial to generating profit including DVD and syndication.

One studio chief drew a comparison between the new arrangement and the damage done to the music industry when Apple disaggregated the traditional album-oriented business model in favor of a singles-centric approach.

"If we head down this path, we're starting down the same slippery slope where the music business went," the executive warned.

While few were surprised that Disney again joined forces with Apple, the emergence of News Corp. as a willing partner this week raised eyebrows. The deal reportedly was made at the behest of Rupert Murdoch, who overruled the objections of News Corp. executives because he is trying to advance his company's interests in the digital news business.

Noting the lockstep Disney CEO Bob Iger has moved with Jobs, the company's largest shareholder, one exec cracked, "If Steve Jobs jumped off a cliff, Iger would hold his ankles on the way down."

Cable and satellite operators could be particularly steamed as TV networks are perennially embroiled in tough negotiations with them over retransmission fees for the same content they are making available to the competition. ABC is now engaged in such a standoff with Time Warner Cable, which likely will count Apple TV as a threat to its upcoming TV Everywhere initiative.

Although Apple is touting the inclusion of Disney and News Corp., the holdouts are hoping their absence from iTunes rentals will weaken it. Already they're taking pride in having successfully prevented some of Apple's previous efforts, including a 99-cent download (as opposed to rental streaming) and a bundled monthly offering.

The holding-out of Viacom, CBS Corp., NBC Universal, Warner Bros. and others could end up marking a stark contrast to what transpired when Apple introduced downloadable TV episodes five years ago: Disney was on board as an inaugural partner, and eventually every other conglomerate in the TV business came on board.

One studio exec noted that increasing concerns about digital monetization in the creative community, such as "Modern Family" creator Steve Levitan's recent comments to THR regarding Hulu, could provide an edge over Disney and Fox when it comes to signing top writing and producing talent.

Another competitive edge also could come to the growing list of services competing with Apple to bypass multichannel providers into U.S. living rooms, from video game consoles to Internet-connected TV sets. A few execs highlighted Netflix's recent syndication deal with Warner Bros. for TV content including "Nip/Tuck" as an exemplary model (Netflix also will be accessible via Apple TV).

The addition of 99-cent rentals also is prompting bewilderment by observers who note the increasing vulnerability to cannibalization among digital platforms devoted to the same programs. Disney strategy in particular was described by one rival exec as "schizophrenic," considering its series pop up on ABC.com, Hulu, Hulu's iPad offering and now Apple TV.

The downside of Apple's rental model also was recognized on Wall Street, where Evercore Partners analyst Alan Gould noted: "We recognize the studios have to provide a reasonably priced online version of their content or illegal downloads will become pervasive. However, that does not mean the studios have to provide the product at a long-term money-losing price."

But Peter Rice, chairman of entertainment, at Fox Networks, struck a more optimistic note. "We're very excited about the launch of Apple TV and this initiative," he said in a statement. "We're always looking to explore innovative and creative ways to reach and engage our viewers on digital platforms, which makes Apple a perfect partner."

Netflix Inks Streaming Deal With Nu Image/Millennium Films (http://www.homemediamagazine.com/netflix/netflix-inks-streaming-deal-with-nu-imagemillennium-films-20534)

Netflix’s expanded content availability for its streaming service took another step forward Sept. 8 when it said it signed a multiyear license deal with Nu Image/Millennium Films. The company produced The Expendables, John Rambo, Brooklyn’s Finest, Righteous Kill, 16 Blocks and Black Dahlia, among other major theatrical releases.

The deal doesn’t include DVD/Blu-ray Disc or the aforementioned movies, which have major studio distribution, including home entertainment. For example, recent No. 1 box office hit, The Expendables, featuring a “who’s who” of current and past action stars, is distributed by Lionsgate.

The agreement does include titles without studio distribution, including Dito Monteil’s 2011 slated release Son of No One, a crime drama starring Channing Tatum, Al Pacino, Katie Holmes, Tracy Morgan, Ray Liotta and Juliette Bincoche. Also slated for streaming is 2011 release Elephant White, a drama starring Academy Award nominee Djimon Hounsou and Golden Globe winner Kevin Bacon, about a contract killer who gets swept up in the dangerous business of white slave traders in Thailand.

The films, among other catalog titles, will be made available to Netflix subscribers during the pay-TV window, which includes transactional video-on-demand (VOD) and is months prior to Netflix’s typical access.

“Avi Lerner and Nu Image have a remarkable track record of producing crowd pleasing and profitable films,” said Ted Sarandos, chief content officer for Netflix. “Their ability to work across multiple studios and maintain a consistent output of diverse and successful films makes Avi and his company perfect Netflix partners for theatrical features in the pay TV window.”

The agreement mirrors recent separate streaming deals between Netflix and pay-TV/online channel Epix and Warner Bros. The Nu Image/Millennium Films deal was orchestrated by Robert Kyncl, VP of content acquisition for Netflix.

NCR, MOD Systems Install First Movie Download Kiosks (http://www.homemediamagazine.com/kiosk/ncr-mod-systems-install-first-movie-download-kiosks-20645)

Kiosk manufacturers NCR Corp. and MOD Systems Sept. 20 said they have installed machines in 12 U.S. airports that allow consumers for the first time to rent and buy movies downloaded to a secure digital (SD) cards and flash drives.

Considered by many as a successor to the DVD, SD cards and USB chips allow users to play movie files on portable media devices.

The Download2Go kiosks are deployed at 20 InMotion retail airport locations, including Atlanta Hartsfield-Jackson, Denver International, John F. Kennedy International, Lambert-St. Louis International, Los Angeles International, Memphis International, Phoenix Sky Harbor, Sacramento International, Salt Lake City International, San Antonio International, San Francisco International, and Seattle-Tacoma International.

The digital kiosks were initially tested beginning July 16 in Atlanta and Seattle.

Consumers, with a credit card, can choose from more than 2,600 major and independent titles, with rentals priced from $3.99, and purchases priced from $12.99. Rentals must be watched within 30 days of purchase, and can be viewed repeatedly within a 48-hour window once started.

Movies can be watched on any media device that accepts SD cards and flash drives. In addition to digital movies, consumers will be able to download television shows to SD cards, and music tracks and albums to flash drives and directly to MP3 players this fall.

“Through this new service, we are expanding consumers’ access to music and movies in airports as well as diversifying this access onto multiple devices,” said Justin Hotard, VP and GM, NCR Entertainment.

Duluth, Ga.-based NCR is also rolling out Blockbuster Express $1 DVD rental kiosks nationwide through a license agreement with Dallas-based Blockbuster.
...

Zune to Expand Multiscreen Entertainment Services Into International Markets (http://www.prnewswire.com/news-releases/zune-to-expand-multiscreen-entertainment-services-into-international-markets-103381864.html)

Major entertainment companies provide music and movie catalog to the U.K., France, Italy, Germany and Spain.

REDMOND, Wash., Sept. 20 /PRNewswire/ -- Microsoft Corp. today announced the further international expansion of Zune, its digital entertainment service. This fall, Zune will expand its music and video footprint and bring the free Zune software, Zune Marketplace online store, Zune Pass music subscription service and enhanced features on Zune.net to new markets, providing a comprehensive entertainment experience on Windows-based PCs, on the go with Windows Phone 7 and in your living room through Xbox LIVE.

"The integration between Zune, Windows Phone 7 and Xbox LIVE is an exciting expansion in our entertainment offerings," said Craig Eisler, corporate vice president, Interactive Entertainment Business Group at Microsoft. "Zune enables users to access the entertainment they want, wherever they want it — and now, more people than ever will be able to enjoy the freedom and flexibility that the Zune service offers."

Zune software has been upgraded with new features and functionality and will serve as the Windows Phone 7 synchronization client. The new software (version 4.7) will be available to download for free in more than 20 countries, including the U.K., France, Italy, Germany and Spain, to easily manage your personal collection of movies, music, podcasts and pictures. Zune software continues to set the standard for entertainment software, providing best-in-class experiences to organize, discover and enjoy digital media with a variety of exclusive features. For example, the Quickplay menu enables immediate access to recently played content and personal favorites, and Smart DJ automatically creates playlists from your personal music collection and takes the extra step of mixing in suggested music from the Zune Marketplace. The updated Zune software will also enable instant streaming of high-definition movies, allowing you to watch some Zune Marketplace movies in HD, with no download time, directly on a Windows PC.

Zune Marketplace online store is accessible from within the Zune software and offers the ability to purchase millions of individual songs or albums from its catalog, all in MP3 format. Here, consumers can also subscribe to Zune Pass, which provides unlimited downloads and music streaming capabilities from the Zune music library, including content from major music labels such as Universal Music Group, Sony Music Entertainment, EMI Music and Warner Music Group, as well as thousands of independent labels. Zune Marketplace also has a large library of videos from major studios such as Paramount Pictures and Warner Bros. Digital Distribution for purchase or rental. Video purchases will be accessible through Xbox LIVE and Windows-based PCs, and can also be added to a Windows Phone 7. Simply buy your favorite video from Zune Marketplace and watch it on the screen of your choice.

Zune.net is the perfect resource for consumers as it allows them to download the software and setup a Zune account with a new or existing Windows Live ID. Zune.net will also provide Web access to Zune Marketplace so you can purchase music or use a Zune Pass to stream music directly through an Internet browser, as well as purchase video content.

Zune Expansion to New Markets

As Zune expands internationally, its music and video service will be tailored for each market. Genre experts will custom program Zune Marketplace and feature the top songs, videos, movies and unique promotions for each country.

The fall 2010 international expansion of the Zune music and video service includes the following:

Zune Marketplace will extend services to several markets in Europe and beyond.
•Zune Pass (U.K., France, Italy and Spain). The monthly music subscription service will be available for 9.99 euros /8.99 pounds per month for unlimited download and streaming access to the Zune music catalog and will be accessible on Windows-based PCs, Windows Phone 7 and Xbox LIVE. The offer in the U.S. will remain at $14.99 per month for unlimited downloads and streaming access, with the ability to keep 10 MP3s per month.

•Music purchase (U.K., France, Italy, Spain and Germany). Expansion to these markets will enable consumers to purchase MP3s and listen on their Windows-based PC, Windows Phone 7 or any other device that supports MP3 format. Users will also be able to purchase music videos to enjoy on Windows-based PC, Windows Phone 7 and Zune on Xbox LIVE.

•Video purchase (U.K., France, Germany, Canada, Australia and New Zealand).Consumers will now be able to purchase movies to download and watch anywhere — on the big screen in the living room with Xbox LIVE or their Windows-based PC as well as sync it to their Windows Phone 7 to enjoy on the go.

•Movie rental (U.K., France, Italy, Spain, Germany, Austria, Belgium, Ireland, Netherlands, Switzerland, Mexico, Canada, Australia and New Zealand).In addition to Zune video on Xbox LIVE, consumers in these countries will now be able to rent movies for viewing on their Windows-based PC or choose to sync the rental to their Windows Phone 7.
The global expansion of the service is the latest step in a series of milestones for Zune, including powering Bing music search results, the added ability to purchase music and video on Zune.net, and the forthcoming integration with Xbox LIVE and Kinect for Xbox 360. By continuing to integrate Zune across the most important screens to consumers, Zune provides an all-in-one music and video service for users to discover, enjoy and experience their entertainment wherever they want.

Netflix launches video plan in Canada (http://ca.reuters.com/article/domesticNews/idCATRE68L2RX20100922)

TORONTO (Reuters) - Netflix launched an online-streaming service in Canada for movies and television shows on Wednesday, its first foray outside the United States.

Adding another content provider to a congested market, Netflix said it will offer unlimited streaming of movies, documentaries and television shows for C$7.99 ($7.81) a month.

Canadian consumers will be able to stream video instantly on their TVs and computers. Leading video game consoles such as the Nintendo Wii, the Sony PlayStation, and devices such as the iPhone and the iPad can all stream from Netflix in Canada.

Netflix said it has inked licensing agreements with studios including Lionsgate, MGM, Sony, 20th Century Fox and Canadian distributors, Alliance Films, Maple Pictures, eOne, and Mongrel.

"With our launch today in Canada, Netflix is focused on adding meaningfully to the entertainment choices available to Canadian consumers," company co-founder and Chief Executive Reed Hastings in a statement.

Netflix's entry into Canada represents another challenge to the country's established telecom and cable-TV companies as they fight for consumer views. It will also be streaming over networks of Internet providers that may offer similar services.

Canada has seen convergence in its telecom, Internet and broadcasting sectors in recent years as once-dominant regional telephone carriers compete nationally against cable companies such as Rogers Communications and smaller Internet service providers.

Canada's biggest telecom carrier, BCE Inc, said earlier this month it would buy CTV, the country's biggest private broadcaster, for C$1.3 billion as it moved to bolster its position in content provision. Cable company Shaw Communications said earlier this year it would buy the television assets of failed Canadian media company Canwest.

Netflix makes Sony deal to delay DVDs in return for streams (http://www.electronista.com/articles/10/10/06/netflix.agrees.28.day.sony.delay.for.more.streams/)


Netflix today landed a deal with Sony to get further access to streaming video in return for a DVD delay. The exchange follows a similar pattern to earlier agreements and will see Netflix delay DVD and Blu-ray availability during the 28-day "window" in return for deeper access to Sony's catalog for the Watch Instantly feature. The plan also lowers the fees Netflix has to pay for its access.

The company already has a slew of similar deals that have included Fox and Universal as well as previous-season NBC TV shows. It has been willing to make a calculated exchange to gradually wean itself away from physical service towards its ultimate goal of being an Internet-first service.

Netflix has been expanding rapidly and just recently moved beyond the US to launch on a streaming-only business in Canada. It also now has near ubiquity on devices and plays on all iOS devices as well as many Blu-ray players and TVs.

The FLO will be cut off in December... (http://www.hdtvmagazine.com/columns/2010/10/hdtv-expert-goodbye-flo-we-hardly-knew-ye.php)

Last Tuesday, Web outlet paidContent.com broke the story that Qualcomm was preparing to shut down its underperforming FLO TV business unit this coming December.

FLO TV, for those readers who’ve never heard of it (and that’s a large group, apparently), is a proprietary subscription mobile TV service that broadcasts nationwide on UHF channel 55. The service, also bundled as a ‘white label’ wholesale product to Verizon and AT&T subscribers, delivered several channels of TV programming specifically formatted for mobile and handheld devices.

Among the networks offered to FLO subscribers were Fox, CBS, NBC, ESPN, MTV, Nickelodeon, and CNN. The service first launched in 2006 as MediaFLO, and picked up Verizon (VCAST) and AT&T Mobile as re-sellers in 2007.

Dolby Brings 5.1 to Netflix Streaming (http://www.homemediamagazine.com/electronic-delivery/dolby-brings-51-netflix-streaming-20853)

Starting Oct. 18 Netflix subscribers using the PlayStation 3 will be able to stream content with 5.1 Dolby surround sound, with more devices able to do surround sound in the future, Netflix said.

DISCLAIMER: I own stock in Dolby Labs

Dolby Brings 5.1 to Netflix Streaming (http://www.homemediamagazine.com/electronic-delivery/dolby-brings-51-netflix-streaming-20853)



DISCLAIMER: I own stock in Dolby Labs

I can one-up that....not only 5.1, but 1080i as well, according to engadget:

http://www.engadget.com/2010/10/14/netflix-on-ps3-goes-disc-free-gets-1080i-streaming-and-5-1-surr/


Rejoice, PS3 owners, your Netflix streaming experience just got vastly better than anything else on the market. Starting October 18 Netflix on the PS3 will no longer require a disc, and it'll stream some content with 1080i resolution and / or 5.1-channel surround audio, while everyone else will be stuck with a max of 720p stereo for the time being. Oh, and you'll get subtitles on some content as well. Netflix is partnering with Dolby on the audio side, and the surround format will be Dolby Digital Plus, which is the same codec used by the VUDU HDX streaming service -- we're guessing it'll require a tiny bit more bandwidth but the results should sound pretty great. Netflix says 5.1 will come to other platforms "over time," so we'll see how long that takes -- and given that the PS3 is now disc-free and the company's eschewed the SRS surround features baked into its Silverlight-based platform, we're guessing Microsoft's exclusivity period has now completely run its course.

Sony Google TV Products Available This Month (http://www.homemediamagazine.com/hd-dvd/sony-google-tv-products-available-month-20840)


On Oct. 16 Sony Style stores will be the first to carry Sony HDTVs and a Blu-ray Disc player with Google TV built in, with Best Buy stores carrying the much-hyped products a week later.

Analysts contend more than 40 million households will have Internet-connected TVs by 2015, up from 2 million this year.

Dubbed Sony Internet TV, the HDTVs and Blu-ray player have fully integrated Google TV, allowing for Web surfing on a full Internet browser, and the ability to watch TV and surf the Internet at the same time.

“Sony Internet TV is the world’s first HDTV that combines the big-screen impact of television and full Internet search to deliver an unrivaled entertainment experience,” said Mike Abary, SVP of Sony’s Home Division. “Finally, you can seamlessly search your favorite TV programs and websites on the same screen, at the same time.”

All four HDTVs (24-inch, $599.99; 32-inch, $799.99; 40-inch, $999.99; 46-inch, $1,399.99) include four HDMI and four USB ports, a keypad remote with optical mouse and built-in Wi-Fi. Later this fall certain smartphones will be able to link to the HDTVs, and in early 2011 owners of the HDTVs will be able to download applications from Android Market. The Blu-ray player ($399.99) will also have access to Android applications in early 2011.

“We are very proud to be the pioneers of this new entertainment category by delivering the world’s first true Internet TV experience,” said Bob Ishida, SVP, corporate executive, and president of Home Entertainment Business Group for Sony Corp. “Sony Internet TV creates value by introducing new and compelling ways to enjoy a variety of content.”

The HDTVs and Blu-ray player also come packaged with Sony’s video-on-demand service, and preloaded applications including CNBC, Napster, NBA, Netflix, Pandora, Twitter and YouTube.

Logitech Oct. 6 unveiled its Google TV-enabled device, a plug-and-play companion device that gives HDTV owners full Internet access on their screens ($299).

Paul Gagnon, director of North America TV research for DisplaySearch, called Google TV devices “the biggest revolution in TVs in a long time,” and predicted more hardware companies would go with Google TV in 2011.

“It’s certainly new territory,” he said. “The TV is not a PC, but it’s becoming a more active device, as opposed to the passive way we’ve interacted with TVs before.”

Vudu drops some rentals to $2 to fight Apple, Netflix (http://www.electronista.com/articles/10/10/18/vudu.movies.drop.to.2.dollars.in.big.promo/)

Vudu movies drop to 2 dollars in big promo

Vudu tonight launched an aggressive campaign [link active soon] to corner the movie rental space by slashing the prices down well below average. The company's Movies On Sale section is charging just $2 for about 4,000 "top films" and is giving 48 hours to finish watching after playback starts. The deal lasts until the end of the year.

Lower prices should apply both to those who still use a Vudu Box as well as the TVs and Blu-ray players that have streaming support, such as those from LG, Samsung and Vizio.

The company didn't immediately give an explanation for the rental price drop, but it represents a significant switch in tactics as it had previously focused on cutting device prices while the Vudu hardware was still its priority. Its pricing would run well under the per-title rental prices of competitors like Amazon and Apple, who like Vudu normally ask $4 or more for a recent standard definition rental. A cut of the sort could be a hedge against the new Apple TV as well as upgraded Roku players.

The pricing likewise makes Vudu a potentially greater challenge to Netflix by giving viewers four movies a month for the same price as a basic Netflix subscription while including titles that might be off-limits.

Netflix: Online Streams to Surpass DVD Rentals (http://www.hollywoodreporter.com/news/netflix-online-streams-surpass-dvd-31692)

Company expects users to watch more movies and TV shows online in the fourth quarter than they will on DVD.

DVDs are so yesterday, judging by what's happening with the company that made a fortune by stuffing them in envelopes and mailing them to subscribers nationwide.

Netflix users will watch more movies and TV shows streamed online than they will on DVD during the fourth quarter, the company said Wednesday in announcing impressive quarterly results.

Netflix said 66% of its users watched something streamed during the third quarter, up from 41% during the same quarter a year ago. Because so much content is viewed streamed, Netflix said it no longer will bother to report the metric.

"By every measure, we are now primarily a streaming company that also offers DVD-by-mail," Netflix CEO Reed Hastings said.

Answering a question from a skeptical analyst Wednesday, Hastings said that Netflix compares minutes streamed to the length of every DVD shipped. Minutes streamed during the fourth quarter will exceed the number of combined minutes of all DVDs mailed to subscribers.

On the financial front, third-quarter earnings rose 26% to $38 million on revenue up 31% to $553 million. The company added 1.9 million subscribers to end the quarter with 16.9 million.

Netflix also lifted its guidance, saying it will end the year with up to 19.7 million subs; previously, it predicted up to 18.5 million.

Churn fell from 4.4% a year ago to 3.8%, and subscriber-acquisitions costs dropped 26% to $19.81.

Shares of Netflix rose 3% during Wednesday's regular session to $153.15 and an addition 9% after hours once third-quarter results were released.

Hastings said Wednesday that even though streaming will overtake DVDs, he won't shut down distribution centers anytime soon as they are needed to ensure quick delivery.

He also said Netflix subscribers, while rabid fans of streaming premium video, are not TV "cord-cutting" at a rate larger than the general population.

Hastings said Netflix streamers are doing so on several devices, given that they might use a game console in one room and a Blu-ray Disc player in another while using an iPhone for their mobile needs.

The CEO made it clear that streaming is overtaking DVDs even as Netflix increases the number of discs it ships.

Networks Block Google TV Access (http://www.homemediamagazine.com/vod/networks-block-google-tv-access-20934)
Three major television broadcasters have begun blocking access to repurposed programs on Google TV.

ABC, NBC and CBS began denying links to repurposed prime time shows on Google’s TV platform, which launched last week on a Sony Bravia TV, Blu-ray Disc player and Logitech media device, according to media reports.

NBC and ABC, with corporate parents that own stakes in Hulu, and CBS, which operates TV.com, among other repurposed content sites, are trying to keep the lid on rapidly evolving technology that allows consumers to access content — notably TV programs — in myriad ways other than traditional broadcast.

The Internet search behemoth’s open platform TV service includes content apps such as Netflix and Amazon VOD, in addition to select content from TBS, TNT, CNN, Cartoon Network, Adult Swim, HBO Go and NBA Game Time.

“Google TV enables access to all the Web content you already get today on your phone and PC, but it is ultimately the content owner's choice to restrict users from accessing their content on the platform,” Google said in a statement.

Company representatives are reportedly working on a resolution, in addition to negotiations to include subscription-based service Hulu Plus.

Newspapers are still reeling from the impact Google has repurposing proprietary and wire stories. News Corp., which owns The Wall Street Journal, has attempted to embargo print content by installing a subscription-based access.

At an investor event last month, Les Moonves, CEO of CBS Corp., said the proliferation of distribution channels required weighing the impact each new channel has on existing channels. Specifically, Moonves said he was more in favor of transactional and subscription-based platforms than ad-supported.

“[The paid subscription model] makes a lot more sense to us,” Moonves said. “It is something we are looking at very closely, and it is something you could see us participating in.”

Then again, the CEO questioned whether 99 cents for episodic TV programming on Apple TV and iTunes was the right price point.

“I don’t necessarily want to rent my shows to another service at the beginning of the [TV network] year,” Moonves said. “Obviously, the watchword of today for all the media companies is, ‘How do I maximize my revenue for the content?’”

Regardless, James McQuivey, analyst with Forrester Research, said the embargo represented a minor setback to hardcore consumers.

“This doesn’t stop people from watching online content on their TVs,” McQuivey told the Los Angeles Times. “It just frustrates them.”

Ben Drawbaugh raises the bar and asks some tougher questions about Ultraviolet. Audio interview - 43 minutes.

Engadget HD Podcast 219: Ultraviolet edition - 10.15.2010

[ (http://hd.engadget.com/2010/10/15/engadget-hd-podcast-219-ultraviolet-edition-10-15-2010/)QUOTE]We're always chancing the dream of watching whatever content, whenever and wherever we want so we couldn't stop pestering the Digital Entertainment Content Ecosystem for more details about its Ultraviolet product. Basically it holds the promise to let us watch any movie or TV show we buy, anywhere we want. So we sit down and talk to Mitch Singer, President of DECE, about his vision for Ultraviolet and we have to say it sounds too good to be true. It isn't expected to hit the streets until next year, but if you want an idea of what it might bring have a listen.[/QUOTE]

Comcast launches Xfinity online service (http://www.variety.com/article/VR1118026327.html?categoryid=1009&cs=1)

Web hub makes 150,000 titles available

Comcast has officially launched the free online portion of its Xfinity TV service, giving the cable giant's 23.2 million subscribers access to about 150,000 video offerings.
Content will range from such current series as "Boardwalk Empire" and "Jersey Shore" to children's programming from Nickelodeon and others. Some VOD programming, such as films available the same day as their DVD release, will be available for an extra charge.

Xfinity TV is part of the wave of TV Everywhere services that cablers and satcasters are launching in an effort to compete with other Web streaming services such as Netflix.

All Comcast digital customers will have access to the Xfinity online site. "We've created a destination that enables customers to watch, find and manage their favorite shows and movies anytime, anywhere," Comcast Interactive Media senior veep and general manager Matt Strauss said.

The service has been in beta mode for more than a year. Xfinity TV will offer access to content from the four major broadcast networks and premium cable companies including HBO, Showtime, Cinemax, Starz and Encore.

CRTC green lights usage-based internet billing

Metered internet usage is on the way, with the CRTC handing down its final decision on how wholesale customers can be billed by large network owners.

The federal regulator on Thursday gave Bell Canada the approval to implement so-called usage-based billing to wholesale customers — usually smaller internet service providers that rent portions of its network — within 90 days. Under the plan, Bell will charge wholesale service providers a flat monthly fee to connect to its network, and for a set monthly usage limit per each ISP customer the ISP has.

Beyond that set limit, users will be charged per gigabyte, depending on the speed of their connections. Customers using the fastest connections of five megabits per second, for example, will have a monthly allotment of 60 GB, beyond which Bell will charge $1.12 per GB to a maximum of $22.50.

If a customer uses more than 300 GB a month, Bell will also be able to implement an additional charge of 75 cents per gigabyte.


CRTC grants concessions
In its May ruling, the CRTC said Bell could not implement its usage-based billing system until it had moved all of its own retail customers off older, unlimited downloading plans. The requirement would have been troublesome for Bell because it would have meant punishing its oldest and most loyal customers.

As another condition, the CRTC also required Bell to offer to wholesale ISPs the same usage insurance plan it sells to retail customers.

Bell appealed both requirements, saying the rules don't apply to cable companies and that they would constitute proactive rate regulation by the CRTC, which goes against the government's official policy direction that the regulator only intervene in markets after a competitive problem has been proven.

In Thursday's decision, the CRTC rescinded both requirements, thereby giving Bell the go-ahead to implement usage-based billing.

Customers of smaller ISPs such as Teksavvy and Execulink who signed up for service before Feb. 1, 2007, will be "grandfathered," where their unlimited usage plans will be honoured. The CRTC did, however, give Bell the right to periodically raise rates on grandfathered plans in order to urge customers on to metered services



http://www.cbc.ca/technology/story/2010/10/28/crtc-usage-based-billing-internet.html

VUDU, Wal-mart and Disney join forces, add a free streaming copy to Toy Story 3 Blu-ray discs (http://www.engadget.com/2010/11/02/vudu-wal-mart-and-disney-join-forces-add-a-free-streaming-copy/)

Wal-mart is showing how it might make use of VUDU after purchasing the 1080p movie streaming house earlier this year, now that the two have teamed up with Disney to throw in a free digital copy of Toy Story 3 with each one purchased at the store on DVD or Blu-ray. When the movie goes on sale today, customers will receive a download code they can use on their nearest VUDU player (now including Boxee on the Box, PC or Mac) to stream some Buzz and Woody at any time without a disc involved. Wal-mart and VUDU are quick to describe this mix of of physical and digital access as the future of content, and we're thinking this type of promotion is about to become much more widespread since Amazon's already offered a similar deal with Disc+, and Best Buy purchased CinemaNow specifically for this type of offer. The only question now is if customers will start asking "which streaming service does this connect to?" before they run out to buy a new Blu-ray instead of simply looking for the lowest price or other promotional tie-in.

http://www.blogcdn.com/www.engadget.com/media/2010/11/ts3-screen-1.jpg


http://www.blogcdn.com/www.engadget.com/media/2010/11/vudumoviedetailsts3.jpg

So is that a VUDU copy you will own that you can watch at any time? If so that is a really good deal.

Amazon.com Expands Disc+ On Demand (http://www.marketwatch.com/story/amazoncom-expands-disc-on-demand-2010-11-02?reflink=MW_news_stmp)
Now offering more than 10,000 Disc+ On Demand titles, making it easy for DVD and Blu-ray customers to "buy now and watch now"

SEATTLE, Nov 02, 2010 (BUSINESS WIRE) -- Amazon.com, Inc. today announced the expansion of Disc+ On Demand, a program that enables customers to instantly watch movies on Amazon Video On Demand that they have purchased on DVD or Blu-ray. In response to the initial popularity of the Disc+ On Demand program, it has been expanded to offer customers more than 10,000 eligible titles. Titles range from new releases to timeless classics. To browse the complete selection of Disc+ On Demand movies, customers can visit www.amazon.com/discplus.

When customers purchase a Disc+ On Demand title on Blu-ray or DVD from Amazon.com, a digital copy of the movie will automatically be added to their Amazon Video On Demand video library. Customers can watch the movie instantly on a Mac, PC, or nearly 200 Amazon Video On Demand compatible Internet connected TVs, Blu-ray players, and set-top boxes.

"When we launched Disc+ On Demand last year, we were excited by the overwhelmingly positive response from our customers," said Steve Oliver, category leader for Amazon.com DVD. "Customers love instant gratification, and this program allows customers to watch Disc+ On Demand titles instantly, without having to wait for their DVD or Blu-ray to arrive in the mail."

Amazon Video On Demand is a digital video service that offers customers more than 75,000 commercial-free movies and television shows to buy or rent. New release movies are often available as soon as they're out on DVD, and many TV shows are available the day after they broadcast. Amazon Video On Demand also offers thousands of titles in high definition. For a full list of Amazon Video On Demand compatible devices visit www.amazon.com/watchontv.

Time Warner to Start Premium Video-On-Demand Service (http://www.bloomberg.com/news/2010-11-03/time-warner-to-start-premium-video-on-demand-service.html)

Time Warner Inc., owner of the Warner Bros. film studio, is near agreements with television distributors to make movies available on-demand for viewing at home soon after they run in theaters.

Time Warner expects to start the so-called premium service in the second quarter, Chief Executive Officer Jeff Bewkes said today on an earnings conference call. The company is close to agreements on the pricing and timing after theatrical release.

Studios including Warner Bros. and Walt Disney Co. are in talks for the VOD service with In Demand, a partnership of Cox Communications Inc., Comcast Corp. and Time Warner Cable Inc., Bob Benya, head of In Demand, said in a September interview. The service would cost as much as $30 per showing. Movies will be available in high definition and eventually in 3-D, Bewkes said today.

Hollywood studios are searching for ways to generate additional movie revenue as DVD purchases decline. A premium service would let consumers watch movies on TV sets without waiting as long as the typical three to four months for DVDs or cable companies’ on-demand showings that cost $4 or so.

In September, Time Warner CFO John Martin said Warner Bros. expects to begin testing a premium video-on-demand window later this year for $20 to $30 per viewing. Analysts including Alan Gould of Evercore Partners have suggested that “Harry Potter” should be the first test film.

excerpt

“So far the 28-day window has clearly been a success versus no delay,” Time Warner Chief Executive Officer Jeff Bewkes said today on a conference call. “The question of whether we ought to go longer is very much under scrutiny. It may well be a good idea.”

http://www.businessweek.com/news/2010-11-03/time-warner-may-consider-longer-delay-for-netflix-redbox.html

VUDU, Wal-mart and Disney join forces, add a free streaming copy to Toy Story 3 Blu-ray discs (http://www.engadget.com/2010/11/02/vudu-wal-mart-and-disney-join-forces-add-a-free-streaming-copy/)



Robert Iger and the Wall Street Journal confirm this is indeed Keychest:

Disney CEO Turns Slump Into a Springboard (http://online.wsj.com/article/SB10001424052748704580304575600134000523928.html)

Last week, with the home-video release of "Toy Story 3," Disney unveiled Keychest, an initiative that automatically gives buyers of its films on DVD or Blu-ray disc access to an online streaming version.

Hulu Plus coming to all PS3 users (http://news.cnet.com/8301-13506_3-20021908-17.html)

Hulu is slowing ramping up the availability of its Hulu Plus platform.

Current owners of the 2010 models of Sony Bravia HDTVs started getting access to Hulu Plus yesterday. And next week, the company plans to make Hulu Plus available to PlayStation 3 owners who have a free PlayStation Network account.

Hulu Plus has been available on Sony's console since July. However, the service was only made available to select PlayStation Plus subscribers. With next week's launch, any PlayStation 3 owner (in the U.S.) will have access to the service.

Going forward, Hulu plans to expand the availability of Hulu Plus to several products, including Blu-ray players, Blu-ray home theater systems, and Sony's Dash. The service is also expected to make its appearance on Roku players in the near future.

The addition of Hulu Plus to all PlayStation 3 consoles comes just a few weeks after a native Netflix application was made available on the hardware. The app allows customers to stream television shows and movies from the console without help from the disc that was previously required.

Hulu Plus costs $9.99 per month for access. Netflix streaming plans start at $8.99 per month.

Hulu Plus coming to all PS3 users (http://news.cnet.com/8301-13506_3-20021908-17.html)

but not for $10:(

but not for $10:(

What do you mean, not for $10?

What do you mean, not for $10?

Might be referring to having to join Playstation Network, which costs money, but I thought I read that wasn't a requirement anymore. I'm not sure, I never joined it myself.

Also, I thought I read that the Hulu Plus price was supposed to have dropped to $4.95 per month because they weren't getting a lot of takers at the $10 price.

You're right, I don't believe you have to be a part of the "paid"PSN. As far as the $5 price drop, I believe it's still speculation.

Panasonic Chooses Widevine to Deliver Secure, High-Quality Customer Experiences on Its Devices (http://www.marketwatch.com/story/panasonic-chooses-widevine-to-deliver-secure-high-quality-customer-experiences-on-its-devices-2010-11-10?reflink=MW_news_stmp)

SEATTLE, WA, Nov 10, 2010

Widevine, a provider of digital entertainment solutions, today announced that Panasonic Corporation has selected Widevine as its preferred provider of video optimization and digital rights management (DRM) solutions. Widevine's video optimization will provide adaptive streaming and virtual DVD experiences, while its DRM will keep content protected on Panasonic consumer electronics such as Viera(R) connected TVs, Blu-ray disc players and more.

As a preferred provider, Widevine's client will be included on millions of Panasonic connected media devices, enabling content providers to securely deliver content utilizing Internet protocols to the Panasonic device of the consumer's choice. Widevine's client will be initially installed on Panasonic Viera connected TVs, followed by other Panasonic devices in the near future.

"Widevine is setting a high standard in video optimization and DRM for over-the-top delivery," said Merwan Mereby, Vice President, Corporate Development and Alliances, Panasonic. "Including Widevine's technology on our connected devices is in line with our commitment to providing our customers with the highest-quality experience possible. By embedding Widevine inside our devices, customers can access the content they want, and replicate a premium viewing environment from the comfort of their homes."

Widevine's video optimization and DRM technologies are utilized by major Internet content services and large cable, satellite and telecommunication companies launching TV Everywhere strategies. The company's software platform optimizes the entertainment experience for live and on-demand content delivered over any network to any device. The solution is natively supported in nearly all types of network connected consumer electronics including televisions, Blu-ray players, mobile devices, gaming systems, and more.

Disney encourages sales of digital movies (http://articles.latimes.com/2010/nov/15/business/la-fi-ct-keychest-20101115)

November 15, 2010|By Dawn C. Chmielewski, Los Angeles Times

Walt Disney Co. has begun rolling out its plan to spur digital movie purchases by removing the technological obstacles that thus far have stymied growth.

The studio has quietly launched Disney Movies Online, which lets consumers buy or rent digital versions of Disney and Pixar films and watch them on the Internet. The site was conceived as a bridge to gently transition the family entertainment company's mainstream consumers from the physical to the digital world. It debuted in May without fanfare.

How much without fanfare? Disney still isn't promoting the site beyond including the Web address on a sleeve inside DVDs and Blu-ray packages. There isn't even a link to it on the company's main website.

In a more public milestone, Disney partnered with Wal-Mart Stores Inc. this month to offer a free "digital copy" of the movie "Toy Story 3" with the purchase of the movie on disc. Consumers use an enclosed code to unlock and watch the film through the retailer's Vudu online video service.

These two developments help lay the foundation for Disney's vision of the digital future, in which consumers would buy and store digital copies of the studio's films in one place and access them from anywhere. And they work in tandem with an initiative announced last year called KeyChest. Consumers would use the KeyChest technology to pay once for a movie, then watch it on any compatible device, such as Internet-connected computers and mobile phones.

"We believe if we harness the power of these separate initiatives … we'll immediately seize the opportunity, extend a lot more benefits to Disney customers and sort of catapult this thing into the future very rapidly," said Bob Chapek, distribution president for Walt Disney Studios.

Despite the convenience of renting and buying movies online — and the promotional bonanza that 38 million visitors to Disney.com deliver — the company is keeping mum about Disney Movies Online because it is still in a test phase, officials said. A promotional campaign for the studio's digital offering is expected to kick in during the first half of 2011, under the name Disney Studio All Access.

Spurring digital sales is crucial to film studios, as traditional DVD sales decline and consumers gravitate to rentals from Netflix and Redbox. Sales of next-generation Blu-ray discs are growing, but they don't make up for the shortfall. Meanwhile, Internet movie downloads and streams have yet to emerge as a significant source of new revenue.

Disney and other studios are attempting to tackle the problem by addressing some of the chief obstacles to consumer adoption: difficulty in playing back movies on devices aside from personal computers, and storage limitations on computers' hard drives.

"When people buy a file in some form, if you give the ability to play that file on multiple devices or in multiple locations, then you're creating more value for them," Disney Chief Executive Robert A. Iger said during the company's most recent earnings call. "I think lack of interoperability is an impediment or a barrier to growing digital media."

Disney Movies Online (http://disneymoviesonline.go.com/home)

Hulu officially launches pay service, cuts price (http://www.businessweek.com/ap/financialnews/D9JI03IO1.htm)

Online video site Hulu says it has now formally launched its premium streaming service for $8 a month.

That's $2 below Hulu's original monthly subscription fee for the service, which it launched as a preview about five months ago.

Hulu said Wednesday that subscribers who paid $10 a month during the preview period will receive credit for the difference.

Hulu's service offers back seasons of NBC, Fox and ABC and other TV shows, such as "30 Rock" and "Glee."

The site is jointly owned by General Electric Co.'s NBC Universal, Fox owner News Corp., ABC owner The Walt Disney Co. and Providence Equity Partners.

The free portion of the site has less content and remains available.

VUDU 2.0 UI teased; HD PS3 streaming due later this month (http://www.slashgear.com/vudu-2-0-ui-teased-hd-ps3-streaming-due-later-this-month-16114408/)

VUDU has outed its upcoming UI refresh, VUDU 2.0, as well as promising HD video streaming for the PS3 later this month. The former is optimized for HDTVs with wide-aspect screens, and uses a tabbed organization system; meanwhile the latter will include HD, HDX and Dolby 5.1 Surround Sound, direct to the console.

VUDU says the 2.0 UI will mean quicker, more intuitive navigation for users; they’ll also be able to take advantage of motion controllers they may have lying around, such as the PS3 Move. Support for motion-based PC input devices, such as Gyration’s mice, will be added over time.

VUDU 2.0 also introduces more functionality than just media streaming, including a “social feed” which we’re guessing will include Twitter and Facebook updates, and “enhanced browse and filter capabilities” for finding shows quicker. There’ll also be a new personal recommendations engine.

Since v2.0 is cloud-based, users will automatically get access to the new UI as soon as it’s ready; there’ll be no downloading or installing required. Screenshots in the gallery below.

Press Release:

VUDU Unveils its Next Generation User Interface

New Design Offers Unparalleled Experience to VUDU Users

November 16, 2010 – San Francisco, CA –VUDU today revealed its new 2.0 user interface, to be delivered before the end of the year to all VUDU-enabled platforms and devices. VUDU 2.0 features an elegant new design optimized for high definition, wide-format TVs and provides many new options to help users discover the best film to fit their mood. Because VUDU is fully cloud-based, users will be able to receive and experience VUDU 2.0 with no downloads, discs or hassles.

While retaining the rich cinematic feel of VUDU’s original, highly acclaimed user interface, the new design provides an easy, intuitive structure organized around tabs, allowing users to navigate more quickly with fewer screen changes and fewer clicks. VUDU 2.0 also provides users with several powerful new tools, including personalized recommendations based on viewing history and ratings and enhanced browse and filter capabilities.

A major new feature in 2.0 is support for next-generation motion-based input devices, such as the PS3 Move, mice, and pointer remote controls. This capability will initially be supported on the Sony PlayStation 3 with the Sony Move controller.

“Since our founding, our core mission has been to deliver the best movie watching experience available anywhere, and VUDU 2.0 substantially raises the bar,” said Edward Lichty, VUDU’s General Manager. “With our sleek new design and killer new discovery tools, we’ve been able to build on what people have always loved about VUDU and make it even better. Finding and enjoying a movie from our extensive library of HD movies has never been easier or more fun.”

Today VUDU also announced availability on Sony PlayStation®3, adding a leader in gaming consoles to existing partnerships with top manufacturers of HDTVs and Blu-ray disc players. VUDU is also available on the PC and Mac via the Boxee platform and on the Boxee Box by D-Link. All VUDU devices and platforms will be updated with VUDU 2.0 before the end of the year.Scheenshots available at the link.

From Variety:

Tech Tussle: Storm forms over cloud (http://www.variety.com/article/VR1118027614?refcatid=4030&printerfriendly=true)
Titans maneuver to avoid homevideo format war

By Marc Graser
Hollywood has its head in the clouds as studios try to figure out a way to future-proof one of their richest revenue streams: homevideo. Ironically, their answer is for consumers to own nothing physical at all, eventually eliminating the need to buy DVDs or Blu-ray discs.

While that isn't expected to happen for another decade, studios say, Sony and Disney are leading separate charges to make sure the films and TV shows consumers buy on discs today can be played on any device they choose: DVD and Blu-ray players, videogame consoles, iPhones, iPads and other tablets, Web-enabled TVs and computers.

Titles would be saved and stored in a "digital locker" that can be accessed from any platform, creating a "cloudlike" scenario in which entertainment is available to stream or download anywhere.

To this end, Sony heads a consortium of studios, electronics-makers and retailers known as the Digital Entertainment Content Ecosystem (DECE) that will launch its UltraViolet system next year. Meanwhile, Disney is focusing on rolling out its inhouse technology KeyChest under the name Disney Studio All Access.

There are signs that another nasty format war could be heating up -- one that could rival past battles such as Blu-ray vs. HD DVD and VHS vs. Betamax.

Both groups are quick to raise the flag of truce, however, with executives eager to stress the interoperability of their systems. Still, even if a new format war does not erupt, there remains a major challenge to overcome: making sure consumers aren't confused by two digital storage offerings.

To overly simple terms, UltraViolet and Disney Studio All Access will essentially manage the various antipiracy technologies used by studios, device manufacturers and retailers, and make movies accessible across nearly every platform. A pic plays as a download or stream when a single agreed-upon key is used to unlock it.

Libraries of purchased movies would be stored online so that their digital file formats don't become obsolete should a new technology be introduced. The files would just be converted to play on a new device that's registered with the system.

In the past, various formats and digital rights management software made that virtually impossible, frustrating customers when a movie bought on Best Buy's CinemaNow wouldn't play on an iPod, for example.

UltraViolet's designers said their system had to be flexible to make all of their partners happy and enable them to keep the digital rights management (DRM) they're comfortable with.

"We didn't want to force device manufacturers to put a single solution in their devices," said Mitch Singer, president of UltraViolet and chief technology officer of Sony Pictures Entertainment. But for the consumer, "DRM has to be invisible (for this) to be successful."

On the UltraViolet website, customers will be able to manage playback of their purchases and control the devices on which they play. At launch, UltraViolet will store only purchased movies, but there are plans to offer rentals as well. Music, ebooks and other entertainment content will eventually be added to the system.

Major omissions

Confusion is inevitable. It's tough to talk about UltraViolet without bringing up the fact that Disney and Apple are not among the 60 companies that back the service -- which many have said indicates lack of confidence in UltraViolet, given Disney's strong brand identity and Apple's dominance of the digital entertainment biz.

But Disney isn't trying to be dismissive in its decision to go rogue; it's just business. The company's bottom line is dependent on the image the Disney name represents among its core customer base of families.

Keeping that in mind, Mouse House chief Robert Iger has been aggressive in aligning all the company's divisions -- from the film studio and TV networks to theme parks, gaming group and consumer products -- to collectively target that audience with each high-profile property produced.

That includes homevideo. Disney Studio All Access will serve as a virtual library to store the digital copies of movies that come with the company's DVD and Blu-rays, stream movies from VOD service Disney Movies Online and distribute films through the point-based Disney Movie Rewards program.

The Mouse House hopes that offering such a service will keep consumers from looking for illegal downloads of a single film to watch on a particular device.

"It's an incentive to buy Disney content," said Bob Chapek, president of distribution at Walt Disney Studios. "In an environment where you don't have interoperability, the consumer is incentivized to get the content for free. If you have six devices, you're not going to buy the movie six times. We're creating an ecosystem where we're encouraging consumers to purchase content legitimately rather than from a pirated site."

The system will get a major promotional push next year, eliminating the KeyChest moniker.

Disney already has been quietly rolling out Disney Studio All Access and already counts 1.6 million entitlements -- or films that individuals have set up to access digitally, mostly through their DVDs -- but it has the capacity to expand to 20 million accounts "very rapidly," Chapek said.

"Everybody who has been logging onto Disney Movie Rewards for the last five years (also) has a vault stored in the cloud," he said.

Once the system is promoted, membership should increase significantly, especially as more people access their digital copies on discs. Nearly 20% of DVD and Blu-ray owners currently do so, Chapek said.

All Access did receive an early promo with the recent homevid release of "Toy Story 3," which enabled buyers to stream the film on Walmart's Vudu service and download the pic via the mega-retailer's website.

Choice and freedom

Of course, UltraViolet was also designed to boost homevid sales.

"What we have found is that what's keeping consumers out of the market today is that existing services are not giving them adequate choice and freedom to play the content on," Singer said. "Consumers still want to collect and buy, but they're uncomfortable with buying into a single platform. The consumer just wants to buy content and know that they can enjoy it in the future on any device that comes out."

The Mouse House knows it needs to keep All Access open to every potential partner to keep customers happy.

"We're big believers in offering interoperability, which is what KeyChest was designed to do," said Iger during Disney's fourth-quarter earnings call last week.

"When people buy a file in some form, if you give the ability to play that file on multiple devices or multiple locations, you're creating more value for them, and I think lack of interoperability is a barrier or an impediment to growing digital media. We are not inclined to or expect to enter a format war over this."

Iger has even said, "There's actually a way that KeyChest can work with the UltraViolet platform." For now, it doesn't.

Said Bob Lambert, president of Technology and Strategy Associates and a former Disney exec: "The main, compelling reason for consumers to adopt UltraViolet is that it works everywhere. But that is not true at this point, because the Apple content -- iTunes -- doesn't work that way, and Disney content doesn't work that way. Until they can resolve that issue, they have a bit of a conundrum in terms of how to position this to consumers."

Disney moved forward with KeyChest when it believed it could develop a system faster on its own rather than deal with the potential headache of having to work with 60 companies to come up with an agreed-upon venture.

"We all know what happens when you get 60 people in a room and try to get them to agree on anything," Chapek said. "We didn't have to get anyone to agree on anything. (KeyChest) is agnostic to business models, DRMs."

Despite its large membership, DECE still has managed to build UltraViolet in less than two years.

"Everything we said we would accomplish this year, we've done," Singer said, which includes agreeing on a company to build out its digital rights locker, specifications on how it would work and coming up with a single file format.

UltraViolet hasn't discussed launch plans beyond saying it will be sometime next year. The service is conducting tests now.

"We set up DECE to be able to get past the logjams that have plagued other standard-setting activities that came before us," Singer said.

Either way, the creation of a digital locker for movies was inevitable given how audiences are quickly getting used to accessing their entertainment on multiple screens.

"It's a natural evolution of video distribution," Singer said. "It's a path forward to give consumers more flexibility and choice."

Digital lockers were the hot topic this month at the Society of Motion Picture and Television Engineers' annual conference in Hollywood, where James Baldwin, chief technology officer of Microsoft's media platforms business, said: "If I can't get the media I want on my iPad or TV in the home, I tend to frown on it now. We have to start thinking about entertainment being delivered to many devices."

DECE's members aren't concerned that Disney and Apple aren't yet officially on their side.

While Apple's product lineup of iTunes, iPods, iPhones, iPad and Apple TV has established the company as the leader in digital distribution and mobile platforms, digital distribution represents only 4% of the entire home entertainment biz, Singer said. In order for it to grow, "we have to do something different," he added.

"While Apple is very important, they're the market leader of a very small percentage of the entire home entertainment market, and we have a lot of room to grow," Singer said.

It's only a matter of time before UltraViolet content winds up on Apple's devices, considering that services like Netflix are appearing on Apple TV.

"It is starting to open up," Singer said. "I think you can expect to see an UltraViolet app on the Apple platform."

UltraViolet is also confident in how it's been able to attract not only Sony, but the support of heavyweights Warner Bros., Paramount, NBC Universal, Fox, Lionsgate, Microsoft, Intel, Cisco, Motorola, Comcast, Cox Communications, Netflix and Best Buy; and hardware-makers like Motorola, Panasonic, Samsung and Toshiba.

"No matter who leads the charge, what Disney has done with KeyChest is fantastic," Singer said. "And the work that the other studios are doing is exactly what consumers are looking for. The idea that all the studios are going down the path to provide ease-of-use is something we should be proud of. No one can call the studios Luddites anymore."

Thanks hulu:( not me

Netflix CEO Says U.S. Streaming Option 'Shortly' (http://news.yahoo.com/s/zd/20101117/tc_zd/257121)
Netflix chief executive Reed Hastings said Wednesday that users should expect a streaming-only service for about $7.99 per month "shortly".

Netflix launched a streaming-only option for Canada, priced at 7.99 CDN in September. Hastings was asked when Netflix would launch a similar option in the U.S.

"You should expect things along those lines shortly in the U.S.," Hastings said, adding that the exchange rate between the Canadian dollar and the U.S. dollar was about a 1:1 ratio.

Netflix has previously said that it would bring a streaming-only option to the U.S..

Hastings also said that the company is seeing "very little impact" from the Apple iPad, as opposed to the Sony PlayStation 3 and the Microsoft Xbox, which he collectively called "a huge phenomenon". Reed also said that Netflix viewership on the Mac laptops outstrip viewership on the iPad by a huge margin. Viewers simply prefer viewing Netflix on a big-screen TV, with a larger UI, he said.

Netflix also sees a future in connected TVs, where the television is connected to the Internet via Wi-Fi. Hastingsa said that he sees a third of televisions within the U.S. will have Wi-Fi this year, with two-thirds of those sold next year being connected as well. After three years, virtually all TVs will be connected, he said.

Cineplex Entertainment Launches Digital Download Service via Cineplex.com (http://www.marketwatch.com/story/cineplex-entertainment-launches-digital-download-service-via-cineplexcom-2010-11-18-61370?reflink=MW_news_stmp)

TORONTO, ONTARIO, Nov 18, 2010

Cineplex Entertainment today announced movies can now be digitally downloaded into your home with Download To Own (DTO) and Video on Demand (VoD) service from the Cineplex Store at www.Cineplex.com. New releases will be available for digital download on the same day they are released on DVD and Blu-ray. This new service complements the DVD and Blu-ray products already available for purchase at the Cineplex Store. Customers will now have the option to easily and seamlessly select whichever option best suits their movie-watching needs. Effective today, digital downloads purchased from Cineplex.com can be played on your PC or other compatible devices.

"When Canadians think of movies, we want them to think of Cineplex," said Ellis Jacob, President and CEO, Cineplex Entertainment. "The best way to experience a movie is still in-theatre but when guests want to enjoy the movie again, they can now choose from a variety of formats available from Cineplex.com including digital downloads via our Download To Own or Video on Demand service, or on DVD or Blu-ray."

To celebrate the launch of the download service, Cineplex Entertainment is offering a buy one get one free promotion until December 31, 2010 where customers who purchase any regularly-priced DTO movie will receive a second movie of equal or lesser value free. Some restrictions apply so visit Cineplex.com for full promotional details.

Today the Cineplex Store at Cineplex.com features thousands of titles available for DTO or VoD from major motion picture studios such as Sony Pictures Home Entertainment, Universal Pictures and Warner Bros. Hundreds of titles will be added daily over the next several weeks as we continue to populate our digital library. New releases being added this month include Scott Pilgrim Vs. the World, Sex and the City 2 and Eat, Pray, Love, and coming in December are Inception, Despicable Me and Salt to name a few.

DTO and VoD purchases made from the Cineplex Store can be stored either on a customer's hard drive or in a digital locker contained within the Cineplex Player that customers will download when they make their first digital download purchase. The locker enables purchasers to store their movie safely and securely without depleting space on their device's hard drive while still allowing unlimited future downloads of DTO titles. The Cineplex Player and digital locker technology are powered by RoxioNow(TM) from Sonic Solutions.

Members of our SCENE entertainment rewards program will continue to earn points on all DVD and Blu-ray purchases made through Cineplex.com and will now earn points on digital downloads (DTO and VoD) as well. SCENE members can also redeem their SCENE points to purchase DTO titles, movie tickets, Cineplex gift cards, DVD, and Blu-ray movies. "This is another example of the tremendous added-value that only SCENE members enjoy," said Jacob. "Cineplex rewards SCENE members for purchasing a movie - whether it is in our theatres or online via our Cineplex Store."

Today's launch is the first of a multiphase rollout, with several key features planned for a 2011 update. Cineplex.com will feature streaming High Definition content for DTO and VoD titles and, once available, the ability to store content in a cloud-based UltraViolet(TM) account. UltraViolet(TM) is a digital rights locker and account management system that will allow consumers to watch their digital entertainment across multiple platforms, such as connected TVs, PCs, game consoles, smartphones and tablet PCs, in an easy, consistent way.

UltraViolet is a newly created consumer brand whose goal is to become the symbol for digital entertainment - one that gives consumers the freedom of access wherever they are, and the broadest choice of content, stores and devices. It was created by the Digital Entertainment Content Ecosystem LLC (DECE), which is a cross-industry consortium dedicated to driving a new, open market for digital content distribution. Cineplex Entertainment is the only Canadian-based retailer and motion picture theatre exhibitor to be a member of this group of nearly 60 world-renowned consortium members.

"We are working to ensure Cineplex.com is the most complete online experience possible for Canadians who want the best entertainment options available," said Ellis Jacob. "By adding the digital download service to Cineplex.com, especially with the features planned for 2011, in addition to our existing entertainment content and online ticketing, we believe we are creating one of the most powerful online entertainment experiences available to Canadians."

Netflix Introduces Streaming-Only Pricing

It looks as if the DVD is suffering another death rattle.

Netflix’s latest pricing options.On Monday Netflix, the video-rental service, began offering a new option to its customers that allows access to unlimited streaming on-demand video through the Internet without having to rent any DVDs. This is a change from the company’s prior options, which required customers who wanted streaming on-demand video to sign up for a program to rent at least one DVD at a time.

The new streaming-only service will cost $7.99, and give customers access to unlimited movies and TV shows in Netflix’s library.

Netflix also said it would increase the price of its one DVD-by-mail service by $1, subsidizing the rising costs of partnerships to obtain new streaming content. Earlier in the year Netflix signed a $1 billion deal with Paramount Pictures, Lions Gate and MGM to add their content to its services.
In a blog post, Jessie Becker, vice president of marketing for Netflix, said the changes resulted from the availability of more content on the company’s streaming service and more Netflix members’ signing up for the streaming option.

The streaming-only pricing option has been widely expected for the past year as the company has started to look beyond physical DVDs and onto dozens of new platforms and services.

Over the past few years, Netflix has blanketed the device market with its software, making the streaming version of the platform available on an abundance of devices, including mobile phones, video game systems, laptop computers, third-party set-top boxes and a number of other Internet-capable gadgets.

http://graphics8.nytimes.com/images/2010/11/22/technology/bits-netflix1/bits-netflix1-articleInline.jpg

Sony's Qriocity video-on-demand services goes live in Europe (http://www.engadget.com/2010/11/24/sonys-qriocity-video-on-demand-services-goes-live-in-the-uk/)

Sony said it was coming, and come it has. Just in time for expatriated Americans basking in the glory of being paid in pounds to enjoy over "Thanksgiving," Sony has flipped the switch on its Qriocity on-demand movie service. The UK launch marks the European debut of the service (we're also hearing that it's like 'across Europe'), offering "hundreds" of pay-per-view streaming flicks to those with a network-enabled BRAVIA TV, Blu-ray player or Blu-ray home theater system. We're told that the library consists of material from Fox Home Entertainment, Lionsgate, MGM, Paramount Pictures, Sony Pictures Home Entertainment, Starz Digital Media, The Walt Disney Company, NBC Universal and Warner Bros., with both new releases and heralded classics up for grabs. Rental prices for SD content start from £2.49 for library content and £3.49 for new releases, while HD content start respectively from £3.49 and £4.49. Not exactly free, but it's a small price to pay to keep that keister planted on Turkey Day.

Toshiba, Vizio Are Said to Introduce Google TV Products in January at CES (http://www.bloomberg.com/news/2010-11-25/toshiba-vizio-are-said-to-introduce-google-tv-products-in-january-at-ces.html)

Toshiba Corp. and Vizio Inc. plan to release products based on Google Inc.’s TV software, boosting the Internet search company’s efforts to bring the Web to TV screens, people familiar with the matter said.

The two companies will unveil products at the annual Consumer Electronics Show in Las Vegas in January, the people said, declining to be identified because the companies haven’t made their plans public. Samsung Electronics Co. is considering making Google TV devices as well, the company said.

The support would give a boost to Google after the company clashed with TV networks over allowing their online content on the system. Google is counting on the product to parlay its dominance in online search advertising into a foothold in broadcast ads. Until now, the software has been used only in televisions and Blu-ray players from Sony Corp. and in a set-top box from Logitech International SA, all using Intel Corp. chips.

“We are very happy with the launch of Google TV with our initial partners Sony, Logitech and Intel,” Google said yesterday in an e-mailed statement, without naming any new participants. “Our long-term goal is to collaborate with a broad community of consumer electronics manufacturers to help drive the next generation, TV-watching experience.”

Vizio was the leading maker of LCD television sets in the U.S. in the third quarter, while Toshiba ranked sixth, according to ISuppli Corp.

Toshiba, Vizio

“Google certainly is a key partner for us on the PC side and will likely be key for us on the TV side as well,” said Jeff Barney, general manager of digital products for Tokyo-based Toshiba’s U.S. unit.

Vizio, based in Irvine, California, doesn’t comment on unannounced products, said Chief Sales Officer Randy Waynick. Samsung, the largest maker of televisions worldwide, said it hasn’t committed to Internet-connected sets with Google’s browser software included.

“A relationship with Google TV is currently under consideration but no decision has yet been reached,” Cho Sung In, a Samsung spokeswoman, said in an e-mailed statement.

Google rose $11.96 to $594.97 yesterday in Nasdaq Stock Market trading. The shares have lost 4 percent this year.

Sony televisions and Blu-ray players, as well as a set-top box from Logitech, went on sale in October using the software as the main interface. The products aim to make it simple for consumers to access all of their TV programs, movies, music and the Web through their home’s main living room screen.

Google TV software, along with a push into 3-D television, is key to Sony’s attempts to claw back sales lost to Samsung and other set makers. Intel Corp., which is supplying chips for Google TV, is trying to use the products to lessen its reliance on PCs by winning market share in consumer electronics.

Network Opposition

To do that, it will have to overcome opposition from content producers, including Walt Disney Co.’s ABC, CBS Corp. and NBC, controlled by General Electric Co., that have blocked access to programs available to computer users from their websites. Networks are concerned Google TV lets viewers watch pirated video on television sets.

The first Sony and Logitech products haven’t delivered on the promise of bringing easy Web access to the living room, according to reviewers.

It’s a “geek product,” said the Wall Street Journal’s Walt Mossberg, while David Pogue of the New York Times called it an “enormous step in the wrong direction: toward complexity.”

Google TV’s backers are surprised by how well it’s fared after expecting purchases only by “earlier adopters” for the first year or so, said Lance Koenders, a director of marketing at Intel, whose Atom processors power the software.

More to Come

“For us to hit mainstream you have to continue to refine the product,” Koenders said. “Compared to most attempts at bringing the Web and TV together, we’ve made a big step. Don’t think by any stretch we are done with this product.”

That will happen, according to Rishi Chandra, who heads the project at Mountain View, California-based Google.

“We have to be realistic,” Chandra said. “We can’t build a product from day one that is going to work for everyone. It’s going to get better every day, whether it be us updating the actual software or the content itself is going to get better because new creators are coming in.”

Microsoft eyes leap back into TV: sources (http://www.reuters.com/article/idUSTRE6AS2E120101129)

(Reuters) - Microsoft Corp is about to jump back into the TV game. Only this time, it may aim at cable, satellite and phone companies.

The software powerhouse has held talks with TV networks to create a new subscription-based TV service on its Xbox gaming console that would rival efforts by Google Inc, Apple Inc and Netflix Inc, sources told Reuters.

Microsoft's latest explorations after investments in MSNBC and WebTV come as efforts to redefine living room entertainment have accelerated in the past year, with technology companies seeking to offer lower cost alternatives to pricey pay-TV subscriptions.

One scenario under consideration by Microsoft is to create a new TV service on its Xbox gaming console that would establish a "virtual cable operator." The service would charge a monthly fee for access through the Xbox to networks such as ABC, NBC, Fox, CBS, ESPN or CNN, according to two sources familiar with the plans.

Other options include allowing cable subscribers to use the Xbox to watch shows with more interactive functions. Viewers could, for instance, message with friends over the console while viewing their favorite shows.

Microsoft is also exploring the possibility of creating programing packages for customers, setting up a bundle of sports or children shows, for example, these people said.

In addition, it could sell more individual channels, such as an HBO or Showtime, directly to subscribers. It already has Walt Disney Co's ESPN on the Xbox Live online service.

These people said a service may not arrive for another 12 months, but early discussions have been productive.

Microsoft declined to comment. The people involved in the talks asked not to be identified as the discussions were confidential.

News of Microsoft's plans come as the pay-television industry are moving to allay investor concerns that consumers are fleeing expensive subscription packages for cheaper online services operated by companies such as Netflix Inc and Hulu, which both charge $7.99 per month for streamed shows and movies. The phenomenon is called "cord-cutting."

The worry is that so-called over-the-top services could undermine the lucrative cable TV industry, whose dual-revenue stream model has made pay-TV one of the most resilient sectors during the economic recession.

Cable networks such as ESPN are paid carriage fees by pay TV operators and also earn revenue from advertisers.

But programmers have said they would welcome new types of competition to the cable and satellite companies.

Speaking at the Reuters Global Media Summit on Monday, News Corp Chief Operating Officer Chase Carey said the arrival of alternative TV services gives cable and broadcast networks yet another way to reach fragmented audiences. News Corp is parent of Fox Broadcasting.

"The emergence of platforms like that -- from people like Microsoft which is really more a theory at this point, or Netflix -- increases the value of content and brands and those who create the content and channels that actually the business and drives consumer demand," Carey said.

Microsoft has long held ambitions to be a major player in the TV business and has previously invested in MSNBC and interactive television initiatives including Web TV and MSN TV set-top box software. Its latest plans include offering interactive features to engage viewers through social media, interactive advertising and "gesture" technology that lets viewers change channels and fast forward through shows by waving their arms or speaking instructions, say people who have seen early demonstrations.

The Redmond, Washington, company is mulling feedback it has received from programmers including the expense of such a plan, said one person.

Microsoft faces an increasingly crowded field. Google has already launched Google TV, an enhanced Web-TV service with partners including Sony Corp televisions and Logitech set-top boxes.

Apple has also held talks with programmers, but faced resistance industry-wide over its plans to offer a lower-cost subscription TV plan, people familiar with the talks have said. Apple has begun to offer 99-cent TV show rentals for a limited number shows through News Corp's Fox and Disney.

Amen;) more competition to apple tv , google tv is better for us

Millions of U.S. households already using Internet-connected CE to watch video-on-demand, finding convenience and savings in these devices (http://parksassociates.blogspot.com/2010/11/millions-of-us-households-already-using.html)

Parks Associates reports three million U.S. broadband households plan to purchase an Internet-connected TV during the 2010 holiday shopping season, further eroding consumer need for brick-and-mortar video sources.

Nearly 25% of U.S. broadband households already own at least one connected TV device, and one-fourth of these households have watched a paid movie-on-demand at least once in the past month, according to Parks Associates' Connected CE Tracker, part of the firm's landmark Consumer Decision Process Service. Parks Associates’ analysts predict connected CE devices will be top sellers in this year’s holiday shopping season.

http://2.bp.blogspot.com/_LCYt9aS8y3s/TPUlQZlBAmI/AAAAAAAABJ0/wTenURokBIQ/s1600/cdp-pr10-460.gif

Only 38% of U.S. broadband households plan to purchase a CE device this year, but it’s the connected CE and smartphones that will be the most popular items. Connected devices are the future of content consumption and entertainment in the living room as they capture the broader trends of integration among different silos in consumers' lives. We will continue to follow their sales through 2011 with Connected CE Tracker.

Connected devices include Internet-connected game consoles, Blu-ray players, tablet computers including the iPad, and digital video players including Roku and Apple TV. By the end of 2010, more than 40 million U.S. consumers will have a broadband-connected game console, more than eight million will have a PC-to-TV connection, more than five million will have a connected Blu-ray player, and over four million will have a networked digital video player (such as an Apple TV or Roku Digital Video Player).

However, even the significant enthusiasm for these devices does not totally offset the drop in CE buying intentions reported for this holiday shopping season. In 2009, almost 50% of U.S. broadband households planned a CE purchase.

Manufacturers, retailers, and technology providers are noting the tight consumer purse strings and continue to roll out the deals. Consumers want deals; that is their trigger as economic conditions have made them more cautious buyers. Market players must stress the value and convenience of Internet-connected devices. It helps that consumers may choose to save the cost of a video membership and eliminate a trip to the store or kiosk.

Vudu and Walmart launch Twilight Eclipse movie cross-promotion (http://venturebeat.com/2010/12/03/vudu-and-walmart-launch-twilight-eclipse-movie-cross-promotion-to-tout-movie-streaming/)

December 3, 2010 | Dean Takahashi

Vudu continues to cash in on the relationship with its new parent company, Walmart. Starting on Saturday, Walmart will begin selling the Twilight Eclipse movie in the form of DVDs and Blu-ray discs in all of its stores. In each one of those copies, Walmart will provide a coupon for a $5 movie credit on Vudu.

If you’re not familiar with the Twilight series, it’s the vampire movie of choice for 20 million American teenage girls (I think the movies are pretty good too), thanks to stars like Robert Pattinson. Fans will now be able to buy a physical copy of the film and watch it on their home DVD players or Blu-ray players as well as watch a streamed digital copy of the film on any of their connected devices, such as laptops, Boxee set-tops, or connected TVs.

Vudu also offers over 4,000 high-definition movies to choose from, including the original Twilight and Twilight New Moon movies. On Nov. 1, Vudu and Walmart did the same thing with the DVD and Blu-ray purchases of Toy Story 3. The idea is to make the Walmart version of the movie more attractive in order to get more customers. And Vudu itself allows the world’s biggest physical store retailer to dip its toes in the water of digital distribution.

Now that Walmart and Vudu have combined forces, they can encourage users to buy their combination of a physical movie and its digital version for the same price. The combination of retail and digital online distribution is likely to be a powerful one for many businesses. GameStop, the biggest video game retailer, bought the digital online game portal Kongregate in order to execute on the same kind of plan. The big plus is that the retailers get a huge amount of foot traffic and can point those consumers to digital properties while they’re in the stores.

http://cdn.venturebeat.com/wp-content/uploads/2010/12/vudu-2.jpg

Netflix signed a deal with ABC/Disney to bring lots of programming to streaming including new episodes of current programs, all seasons of Lost, etc

Netflix signed a deal with ABC/Disney to bring lots of programming to streaming including new episodes of current programs, all seasons of Lost, etcThanks jamieva.

Netflix reaches deal to stream Disney and ABC reruns online (http://www.latimes.com/entertainment/news/homeentertainment/la-fi-ct-netflix-abc-20101209,0,7890554,print.story)

By Dawn C. Chmielewski and Ben Fritz, Los Angeles Times
December 9, 2010

Netflix is spending hundreds of millions of dollars to offer more than just flicks.

The video subscription company on Wednesday unveiled a deal to stream reruns from Walt Disney Co.'s ABC network and cable channels Disney Channel and ABC Family through its online service. The agreement, which lasts one year with an option to extend it, is valued at $150 million to $200 million, according to a person with knowledge of the matter.

Netflix, which built its business by delivering DVDs through the mail in red envelopes, is fast transitioning into an Internet streaming provider that is an increasingly formidable competitor to cable and satellite television systems and pay TV channels such as HBO.

Two-thirds of the company's nearly 17 million subscribers have watched video on Netflix's online service, which can be delivered through computers or directly to television sets with Web connections.

The company has in the last few months made several big deals to add TV content to its Internet offerings from such companies as Warner Bros., NBC Universal, and now Disney-ABC Television.

"Television content is continuing to grow for us and is now just as popular as movies in terms of hours watched," said Ted Sarandos, Netflix's chief content officer.

The Disney agreement for the first time allows Netflix subscribers to watch episodes from previous seasons of various ABC shows, including "Grey's Anatomy," "Brothers & Sisters" and "Ugly Betty." In addition, Netflix will add the final season of "Lost," for which it previously streamed the first six seasons. Shows from the latest season will continue to be available only on Hulu, the online video service co-owned by Disney.

Netflix will also offer programs from ABC Family and Disney Channel, such as "Phineas and Ferb" and "Greek," that initially aired on the cable networks as recently as 15 days prior.

In the last year, Netflix has added 4.6 million subscribers and seen its stock price skyrocket 228%. At the same time it has been paying large sums to add content to its online service as it tries to transition customers away from receiving DVDs through the mail. In August, for instance, it agreed to pay nearly $1 billion over five years to three studios through a deal with pay cable channel Epix.

That open-wallet policy is welcome news to entertainment companies like Disney, which are looking for new ways to make money on older TV shows as sales of DVDs decline and local TV stations and cable networks pay less for rerun rights.

"As Hollywood looks for new ways to monetize content, there's one guy standing around in a red shirt handing out checks,'' said Richard Greenfield, media analyst for BTIG, referring to Netflix Chief Executive Reed Hastings.

Despite the large checks it is cutting, some Hollywood executives have been publicly complaining that they will need a bigger share of Netflix's revenues, as they believe its popularity could be undercutting DVD sales as well as viewership of cable channels like HBO.

Some television industry executives worry that enhancing Netflix's video offerings might encourage "cord-cutting," in which consumers dump their monthly cable or satellite TV service for the less expensive Internet alternative, siphoning off valuable revenue.

Netflix has countered that the huge amounts of money it is spending to acquire content make it a net positive for the entertainment industry.

"Consumers are already shifting to on-demand viewing, which devalues older reruns, but at the end of the day we're paying specific license fees and helping studios and networks to monetize that trend," Sarandos said.

The deal calls for Netflix to pay Disney-ABC $50,000 to $150,000 per episode, the person familiar with the situation said. That's significantly less than what local TV stations and cable channels typically pay to show reruns. For example, 20th Century Fox Television sold its hit "Modern Family" to NBC Universal's USA Network for about $1.4 million per-episode.

Some within the industry worry television licensing agreements like the one with Disney-ABC put Netflix into competition with the syndication business, potentially driving down what cable networks will be willing to pay to air reruns of broadcast shows that are available online.

Netflix recently announced a new $7.99-per-month subscription plan for Internet video. It charges more for plans that also include DVDs by mail but wants to get consumers to switch from DVDs to Web video over the next decade.

by Alfred Poor on December 9, 2010

Several sources including the LA Times have reported that Netflix has struck a new deal with Disney to gain access to more of its television content. This includes episodes from prior seasons of popular ABC shows such as “Lost” and “Grey’s Anatomy”. According to the LA Times article, episodes from the current season still will be only available on Hulu. Some of shows from other Disney networks — ABC Family and the Disney Channel — will be available as early as 15 days after the initial broadcast date.

There are two interesting aspects to this story. First, the Netflix camel’s nose is nudging insitently under the tent. No longer are they just streaming content that’s avaiable on DVDs; they are getting into television episodes in a big way. Sure, it’s not every episode of every show, but at the end of that sentence, you have to put a great big “YET”. The company is in the right place at the right time to capitalize on the studios’ worries about revenues and retransmission rights and plummeting DVD sales. So expect to see more deals that will expand the scope of the content, and compress the delay between initial release and streaming availability.

The other part of the LA Times story that I found interesting is how much Netflix is willing to spend. According to the newspaper’s unnamed sources, the company will pay Disney-ABC between $50,000 and $150,000 per episode for the major shows. That may seem like a lot of money, until you find out that some networks pay $1.4 million per episode for reruns of popular shows. Now, the initial conclusion might be that Netflix can’t afford to increase their offer by 10-fold to compete with these cable networks. I think that’s looking at the wrong end of the telescope. What happens to the studio revenues if cable and satellite services offer more stripped-down packages, or even shift to a la carte pricing? Many of these networks that have these rerun deals may see their subscriber count drop, which reduces ad revenues, which limits what they can pay for the programming. If this happens, it’s likely that Netflix could pick up much of the slack, as subscribers would not be paying extra to gain access to these shows. Netflix revenues increase, and is able to pay the studios more. As they become the major outlet, their bargaining position also gets stronger. It will be interesting to see how the money side of episodic television programming develops.

http://www.hdtvmagazine.com/columns/2010/12/hdtv-almanac-more-tv-content-for-netflix.php

Google Delays TV-Set Offerings (http://online.wsj.com/article/SB10001424052748704138604576030442494189946.html?mod=googlen ews_wsj)


Google Inc. is asking some TV-set makers to put off announcing hardware based on the Internet company's software, according to people briefed on Google's plans.

The move comes after the initial Google TV devices—offered by Sony Corp. and Logitech International SA—have run into negative reviews. Some content providers have also blocked their offerings from Google TV.

Despite the challenges, some additional companies were expected to use the Consumer Electronics Show in Las Vegas in early January to show off new Google TV products. Samsung Electronics Co. still plans to do so, according to one person briefed on Google's plans. But some others, including Toshiba Corp., will not.

A spokesman for the Japanese company said the company is in talks with Google over Internet TVs, but will not demonstrate products based on Google TV at the trade show.

Representatives of Google couldn't immediately be reached.

Google's move was reported earlier Sunday by the New York Times.

The quest to marry the Internet and television has been going on for more than a decade. Most of the offerings to reach the living room so far provide a small selection of specially formatted content, from providers such as Netflix Inc.

Google, based in Mountain View, Calif., has taken a different strategy, trying to offer TV watchers all the content from the Internet that PC users can view. Borrowing from the way people use its popular search engine, video content is typically called up by searching with text commands.

The approach is more complex than some competing offerings and requires a remote featuring more buttons than others on the market. Some reviewers have criticized the complexity of the technology, which exploits Intel Corp. chips and has been built by Sony into TVs and disk players and by Logitech into a TV companion device.

One of the people briefed on Google's plans said the company sent out word to some hardware makers last week asking them not to announce additional products yet. The delay may allow the company to improve its software, this person said, while possibly trying to address other problems the Google TV effort faces.

But one person familiar with Toshiba's thinking disputed the notion that it was acting on Google's instructions. The decision to put off announcements of Google TV products at the electronics show was a mutual one, this person said.

Samsung representatives could not be reached for comment.

Sears, Kmart Bow Movie Download Service (http://www.homemediamagazine.com/electronic-delivery/sears-kmart-bow-movie-download-service-21522)

The “Blue Shirts” have entered the transactional video-on-demand business.

Sears Holdings Inc. Dec. 28 formally launched a movie download service that allows consumers (including subsidiary Kmart) to buy and rent new release movies and television shows.

Called Alphaline Entertainment (http://alphaline.roxionow.com), the previously announced service is offering new releases such as The American (with George Clooney), The Town, Devil, Easy A and Legends of the Guardians, among others, for $3.99 for up to two-day rental periods.

Movies can be purchased for $19.99 and played on up to five different PCs. A title can be transferred to no more than four RoxioNow-approved portable devices.

The service, which is powered by Sonic Solutions’ RoxioNow technology, also offers episodic purchases ($1.99) only of TV series like “Mad Men,” “Sanctuary,” “Chuck,” “Fringe,” “Running Wilde,” “Hellcats,” “Chase,” “Fringe,” “The Closer” and “Two and a Half Men,” among others.

Alphaline will be rolled out in phases at Sears and Kmart stores nationwide with the assistance of the Sears Blue Appliance Crew, the retailer’s answer to Best Buy’s Geek Squad.

“Collaborating with Sonic provides a great opportunity for Sears and Kmart to launch digital services for customers seeking even faster access to the latest in home entertainment experiences,” said Karen Austin, president of consumer electronics for Sears and Kmart.

“We’ll continue to increase the reach and flexibility of the Alphaline Entertainment service by providing consumers on-demand access to the latest entertainment from a range of home and mobile electronics,” she added.

Novato, Calif.-based Sonic, which is set to be acquired by Rovi Corp., provides backend support for digital entertainment distribution services offered by third-party retailers such as Blockbuster, Amazon VOD and Best Buy. Walmart offers content downloads via its proprietary Vudu service.

Studios and media companies have made no secret their desire to monetize content at higher margins (than traditional disc rental) via transactional VOD at the retail, cable and satellite platforms.

Sonic and Sears are also working to embed Alphaline at a chip level on a growing network of devices, including portable media players, Blu-ray Disc players, mobile phones and high-definition television sets from leading manufacturers.

Analyst Richard Greenfield with BTIG Research in New York, said the addition of national retailers, such as Sears and Kmart, to the VOD space underscores the studios’ continued transition from physical to digital media.

Greenfield wonders what consumer would consider buying a digital movie for $20, which is the equivalent of renting it five times.

“With rental now so convenient between Netflix, Redbox and VOD, we believe consumers will simply stop buying movies, especially when it comes to digital content,” Greenfield wrote in a post.

Indeed, the analyst said increased proliferation of digital distribution will undermine Blu-ray Disc, which remains the lone growth vehicle in physical media. Greenfield cited availability of combo disc (Blu-ray/DVD/digital copy) new release The Town on Amazon for $18.99, which is $1 less than Alphaline. He suspects the quality of the 1.5GB digital copy file is inferior to transactional VOD, which could ultimately backfire among consumers.

“With a poor consumer experience in digital, we suspect most consumers will gravitate toward lower-priced rental options,” Greenfield wrote. “In turn, as digital adoption accelerates, overall movie industry profitability will fall.”