AllThingsD » Blu-ray

Walmart's Cloud Movie Service Shapes Up

Peter Kafka — Mon, 07 Jan 2013 17:00:55 +0000

Last year, when Walmart debuted a service that let you store digital copies of movie DVDs you owned in the cloud, it had several flaws. One of them was very big: In order to get your flicks on Walmart’s servers, you had to gather up your discs and drive to one of their stores, then find a clerk to process them for you.

Now Walmart says it has solved that one, more or less, with software that will let most users handle the “disc to digital” process at home.

Walmart says that, starting this month, users can start storing copies of some of the movies they’ve already purchased on DVDs, using Macs and PCs and its Vudu.com movie service.

You’ll need a computer that still has an optical disc drive for this. So, if you’re working on, say, a MacBook Air, you’re going to have to dig up an older PC, or forage for an external drive.

And you’ll still need to pay for the privilege of using Walmart’s cloud: $2 to convert a standard DVD or Blu-ray, or $5 if you want to convert a standard DVD into an HD copy. That may turn off some people who believe that paying extra for digital copies of stuff they own doesn’t make any sense.

Also note that while many of the big studios, including Sony, Warner Bros, Fox (which, like this site, is owned by News Corp.) and Paramount are in, not all of their films are available for digital storage and playback. So in some cases this will still be a moot point.

Still, the notion of hauling your discs to a store in order to move them onto the Internet made zero sense in 2012. Nice to know that Walmart has caught up in 2013.

Walmart has made other strides, as well. It recently started letting Android users download digital copies of their movies on their devices, instead of requiring them to stream them. And it says that, next month, Apple iOS users will be able to do the same.

Walmart is pushing the service in conjunction with UltraViolet, the Hollywood + tech consortium that’s trying to push movie ownership via a system that’s supposed to let users access any film they buy, on any device. And since Disney isn’t an UltraViolet member, that means none of this applies to Disney and Pixar films, which means a key demographic that would value having multiple copies of the same movie — parents with kids — won’t get as much out of this as Walmart would like.

Still, when Walmart rolled this thing out last March, it looked DOA, and UltraViolet backers have conceded to me privately that it has underwhelmed them, too. Maybe the retailer has done enough to give this thing a second chance.

Tipping Point? We're Watching More Web Video on TVs Than on PCs.

Peter Kafka — Wed, 26 Sep 2012 16:20:20 +0000

Getting Web video off your PC and onto your plasma screen used to be a niche activity. No more: Consumer-tracking service NPD says TV sets are now the most popular way to watch streaming video.

NPD says 45 percent of consumers report that TV is now their primary Web video screen, up from 33 percent last year. It basically swapped places with the PC, which used to account for 48 percent of viewing but now represents 31 percent.*

This is a story about devices: NPD figures that 10 percent of homes now have at least one Internet-enabled TV (though I bet that only a minority of them are actually plugged into the Web), and we’re seeing a steady increase in the use of Web-video peripherals, like Blu-ray players, Apple TVs and Microsoft Xbox 360s.

And it’s also about content: NPD says the most popular service for viewing Web content on TV is Netflix, with 40 percent of connected TV watchers using the service.

Here’s NPD’s general screen breakdown by device. Curious that “mobile” doesn’t show up as a category; then again, maybe mobile is always a third choice compared to bigger screens. Also odd that the iPad and other tablets don’t break 1 percent.

And here’s NPD’s summary of how Web-to-TV viewers get their stuff on the big screen:

Percentage of device owners that use the device to acquire online content (video, music, games)

43 percent connected TVs
47 percent VG consoles (Wii, Xbox 360, PS3)
62 percent streaming media players (Roku, Boxee, Apple TV)
38 percent computers with direct wired connection to TV
21 percent of BD players

* I’m assuming that mobile accounts for most everything else, but am waiting for confirmation. Update: Nope! See above.

Digital Game Revenue Wasn't Enough to Offset Broader Industry Declines in Q3

Tricia Duryee — Wed, 21 Dec 2011 01:37:21 +0000

Revenue from mobile and social games, among other categories, is growing, but not at a fast enough clip to offset the declines witnessed in the traditional games market.

The NPD Group released a new report today that calculated the amount of money Americans are spending on games from the nontraditional market. That includes a lot of digital content, such as subscriptions, digital downloads, social games and mobile games, but also used games and rentals.

In the third quarter, it found that the amount spent on that “other content” totaled $1.64 billion.

While significant, NPD said it wasn’t enough to offset lower revenue from the traditional game market. NPD defines the traditional market as packaged goods sold at retail. In the third quarter, that totaled $1.3 billion.

“New physical retail sales had a rough third quarter,” said Anita Frazier, an analyst with NPD. “Increases in sales from some of these other monetization methods, and full game and add-on digital downloads in particular, only partially offset the decline see in the new physical retail channel.”

She said the overall market, including hardware, totaled $4.2 billion, down 11 percent compared to the same period a year ago.

For companies like Electronic Arts, which is investing heavily in mobile and social games and is placing big bets on online content, like today’s release of Star Wars: The Old Republic, the results of these monthly and quarterly reports are unrepresentative of the trends they are seeing.

“Everything is growing. If you look at the total interactive business, it’s a $50 billion market internationally, and that’s up double digits. That’s where we play,” said EA’s President of Labels Frank Gibeau. “We find it frustrating because it doesn’t tell the whole picture.”

In the second quarter, EA’s digital revenue, which includes downloadable console content, mobile and social — was up 30 percent year over year.

Even a company like Activision, which has been slower to develop games on Facebook and mobile, said that during the second quarter, revenue from digital channels — mostly downloadable content — increased 27 percent year ove year, and accounted for 37 percent of the company’s total net revenue.

For all-digital companies, like Zynga, which went public last week to raise $1 billion, its impact hardly seems to register.

“I think that ultimately we are an interactive entertainment company, not a packaged goods company,” Gibeau said. “We are platform and channel agnostic. The physical channel is a great channel and it’s going to be around longer than people think. … We are fine with that model, but then, when you bring that game home, you should be able to connect to the larger online world.”

Coming to a Gadget Near You: A Movie for All Your Screens

Geoffrey A. Fowler — Thu, 20 Oct 2011 02:04:19 +0000

Taking a movie to watch on the go is about to get easier.

[ See post to watch video ]

Entertainment companies and electronics makers have promised a future in which people will buy a movie once and then watch it on any of their gadgets. With a new service called UltraViolet that lets users build an online library of movies, Hollywood has taken a big step toward making that a reality.

Until now, watching movies on the go has been a frustrating—and pricy—experience. People often must buy a copy of a movie for each device: a Blu-ray from Best Buy for the TV and a digital copy from Apple’s iTunes for the iPad, for example. Some Hollywood studios have sold “combo” packs with a disc and a digital file, but the digital copies often came with playing limits and few guarantees they would work on future devices.

After three years of negotiations, last week a consortium of large Hollywood studios, gadget makers and retailers launched a cloud-based service that lets people watch online or mobile versions of the movies they bought on DVD or Blu-ray. This free “digital locker” keeps track of movie purchases and gets copies of them onto laptops, smartphones and more.

‘Green Lantern’ is one of two UltraViolet titles now available.

Movie and electronics companies have begun rolling out UltraViolet services on a few devices for a few movies and haven’t given a timeline for when there will be more. But they say eventually UltraViolet movies will work on many different devices and, by the end of the year, will come with most new Hollywood titles.

For now, though, UltraViolet’s offerings are slim. By the holidays, the service will work with at least 10 new DVD or Blu-ray discs, compared with thousands offered by online digital movie stores such as Amazon.com and Apple. But UltraViolet has a big advantage: the backing of some of the largest Hollywood studios, including Warner Brothers, NBC-Universal, Sony, Paramount, Fox and Lionsgate. (Fox is a unit of News Corp., which owns this newspaper.) Other companies involved include Comcast, Hewlett-Packard, Microsoft, Netflix, Panasonic, Philips, Samsung and Wal-Mart’s Vudu. Disney has chosen not to participate and is developing its own digital locker, Disney Studio All Access.

For Hollywood, UltraViolet is an attempt to get consumers interested in buying movies again at a time when disc sales are on the decline, and more people are renting movies or streaming them online through services like Netflix.

Here’s how UltraViolet works today: I bought a disc at Best Buy with the movie “Green Lantern” to play in my Blu-ray player. Inside the case was a flier with a code I typed into a website called Flixster, where I registered for a digital locker with UltraViolet. After that, I could stream the movie to an iPhone and iPad using a free Flixster app, which is also available for Android phones and tablets. On a Windows laptop, I downloaded a copy from a free Flixster program that I can watch while on a plane without Internet access. The process went smoothly, though it could be streamlined. Entering redemption codes reminded me of collecting cereal-box tops to win a prize.

The UltraViolet group says at least one of its members is working on technology that will offer many ways to automatically add titles to a digital locker, including just by putting a disc into an Internet-equipped Blu-ray player. UltraViolet still has a huge content hurdle to cross. The only two movies available with it so far are “Green Lantern” and “Horrible Bosses,” though the studios promise 10, including the final “Harry Potter,” by the holidays.

And to really catch on, UltraViolet’s members may have to develop a way to add previous DVD purchases to a digital locker, like people do with music by “ripping” old audio CDs.

Still, buying an UltraViolet movie already comes closer to the idea of “buy once, play anywhere” than anything else on the market.

The one place UltraViolet streaming doesn’t currently work is your TV, though, of course, you can play your DVD there. The UltraViolet group’s aim, they say, is that there will be UltraViolet-compatible software built into TVs and set-top boxes, and consumers will even be able to buy UltraViolet movies online without a disc.

Like many cloud storage services that have emerged in recent months, using UltraViolet requires a strong Internet connection for all of your devices. My iMac with a cable Internet connection took 15 minutes to download “Green Lantern.” A representative for Flixster, which is owned by Warner Brothers, said it plans to upgrade its app to allow users to pre-load UltraViolet movies onto tablets and smartphones and watch them without Internet access.

For $19.99, I got a high-definition Blu-ray disc that played on my TV, as well as streamed in DVD-quality to my iPhone, iPad, and downloaded in DVD-quality to my Mac and PC computers. (A DVD version of the UltraViolet movie sold for $14.99.) Other stores aren’t as flexible as UltraViolet. Amazon.com’s digital locker service, Instant Video, sells a DVD-quality digital version of “Green Lantern” for $14.99 that I could stream only to computers or to my TV (via a Tivo, Blu-ray player, or other compatible device). And while Amazon let me download the movie on my PC, its software doesn’t work for Mac downloads. (Amazon’s videos will work on the forthcoming Kindle Fire.)

Apple’s iTunes store sells “Green Lantern” for $14.99 in a format that will play on a PC or Mac, and in high-definition on an iPad and on TV via a $99 Apple TV. But Apple’s movie purchases don’t play well with devices from other makers and TVs without an add-on Apple TV. Apple’s iCloud service, released last week, doesn’t yet support streaming iTunes movie purchases, but Apple is working on that.

UltraViolet is still young, but with the backing of so many major companies, it appears poised to help reinvent the way people buy and watch home video. UltraViolet may just be the best way to make sure your movies are free to play everywhere in the future.

Walt Mossberg and his Mossberg’s Mailbox will return on Thursday, Nov. 3.

Write to Geoffrey Fowler at geoffrey.fowler@wsj.com

Thanks, Thor! Hollywood Sells Some Discs After All.

Peter Kafka — Fri, 14 Oct 2011 18:23:51 +0000

Hollywood hopes that its UltraViolet cloud plan, and/or Apple’s iTunes cloud plan, and/or Amazon’s cloud plan, will help it sell more discs, which consumers have been running away from all year.

I’m dubious that the ability to stream movies you own to multiple devices will do much to change that. Because with a handful of exceptions (like kids’ movies), most people don’t want to own movies. They’re only going to watch them once, which means rentals are the way to go.

Still, if you’re going to make an argument in good faith, it’s important to note evidence that undercuts your theory.

So here you go: Turns out that Hollywood has sold a bunch of movies in the last few weeks. Specifically, it has sold a lot of Blu-ray versions of “Thor,” a re-release of the “Star Wars” discs, “X-Men: First Class” and a few other titles, according to sales tracker IHS.

I can see why the “Star Wars” discs would have some appeal to buyers — there’s a huge fan base that will buy just about anything George Lucas puts out, and at least some of those movies are classics that appeal to the rest of us, too. But unless I missed something, “Thor” was one of many superhero movies that came out this summer to a flat reception. Hard to see why that one would boom on Blu-ray.

Do note that the Blu-ray increases are from a low base, and that regular DVD sales are still dropping, which means that overall disc sales are flat. Still, if the last couple weeks represent a trend instead of a blip, that’s good news for the studios. Let’s see what happens when “Captain America” goes on sale toward the end of the month.

Intel And Apple To Debut Thunderbolt Video and Data Connection Today

Arik Hesseldahl — Thu, 24 Feb 2011 14:00:58 +0000

Intel will today announce a new connection technology for personal computers that will combine the ability to transfer large high-definition video files at substantially higher speeds than current technologies, and to display them on HD video screens into a single cable, a source familiar with the plan tells me. Essentially, a single connection will allow both for super-fast data transfers and for display and capture of high definition video.

Previously demonstrated by Intel under the codename Light Peak, the connection is being called Thunderbolt, and will debut today at an event in San Francisco. Apple will announce the first computers using the technology today.

Thunderbolt will be able to move data at a blistering rate of 10 gigabits per second, fast enough to transfer the contents of a Blu-Ray move in less than a minute. It’s meant to meet the needs of a world where the creation and viewing of HD video content is an increasingly mainstream activity among consumers, though it will initially be adopted for use in products favored by video professionals.

The technology also speaks to the growing frustration with the number of cables running into and out of PCs and related devices, especially when video is involved.

The technology will allow multiple Thunderbolt-ready devices to be connected to a single PC in a daisy-chain arrangement. At first, Thunderbolt will be intended for use in PCs. It’s possible that consumer electronics makers will embrace it as well, though none have as yet. So far, the other companies debuting products supporting Thunderbolt include professional video systems companies like Avid, Apogee and and Aja Video Systems, as well as storage companies like LaCie and Western Digital.

And while Apple is only the first PC maker to embrace Thunderbolt so far–it collaborated with Intel on the technology–other PC makers are expected to adopt it later this year and into early 2012. Photos on Mac enthusiast sites depict the Thunderbolt port as looking more or less identical to the Mini DisplayPort already found on the sides of new MacBook models. Thunderbolt ports will be identified with a tiny symbol that resembles a bolt of lightning with the head of an arrow at its bottom.

Apple has a long history of adopting new connection technologies early. In 1998 its first-generation iMac was the first computer with USB ports. Apple also invented the Firewire connection technology and was early to add it to the Mac. Firewire technology was also used on the first iPods and proved popular with video editors constantly moving large files between external storage drives.

Maybe UltraViolet, the Ginormous Media Cloud Locker Thingy, Won't Fail, After All. What Do You Say, Steve Jobs?

Peter Kafka — Thu, 06 Jan 2011 08:01:14 +0000

I’m very, very wary of typing this, because it’s about a yet-to-be-released product that’s being demoed at the Consumer Electronics Show.

Which means it could all be from the Island of Pretendistan, which supplies a good portion of the stuff you see every year at CES.

But! It’s possible that “UltraViolet,” the super-ambitious/probably-way-too-unwieldy coalition of just about every big media and tech company except Apple, may actually work. If Steve Jobs will let it.

The big idea behind UltraViolet is that it will let consumers purchase media that can work on multiple devices, using a cloud-based “rights locker.” So someone who bought, say, a “Harry Potter” DVD can watch it on their Blu-ray player, but also on their iPad, or their friend’s Google TV, or whatever.

It’s supposed to start rolling out this spring, and it’s a good idea. In theory.

In practice, even if the group putting this together–everyone from Akamai to Sony to Microsoft to Time Warner–can get the technology to work on every platform, the fact that Apple isn’t playing along is a huge problem. The music industry used to have a “works on most devices except for Apple” standard, and it was called Windows Media Audio. Remember? No?

But today Akamai, which is powering the back end for UltraViolet, will demo a version of the service on four devices: A Windows-based PC, a Mac, an iPad and an iPhone.

The UltraViolet people still don’t have Apple’s buy-in on the project, but the demo is meant to prove that the coalition can still work with Apple’s products, even if Apple doesn’t formally sign up. They’re accomplishing that by playing the Mac stuff on a Web browser, and on the iPhone and iPad via an iOS app that Akamai hasn’t submitted to Apple yet.

But the Akamai people say they don’t see why Apple will have a problem with the app, and stress they’ve been working closely with Apple to make sure that their tech synchs with the iOS platform.

They could be right, too. Apple lets plenty of other companies sell products that compete with Apple’s own media offerings via the App Store: Amazon’s Kindle, Pandora, Hulu, Spotify (sort of), etc.

If so, then UltraViolet really could pan out, if the coalition doesn’t screw it up with byzantine restrictions and pricing tiers–$X amount for a DVD, $X+Y for a DVD with iPhone privileges, etc. (It’ll probably do just that, actually.)

Still, Steve Jobs has been very successful at tending a walled garden. And if UltraViolet really works, it means he’d be letting someone else manage Apple customers’ media, and letting all that work he’s put into nurturing the Mac/iTunes/iOS ecosystem go to waste.

Theoretically possible. But so is a lot of the stuff we see at CES that never shows up anywhere else.

AKAMAI DEMONSTRATES DELIVERY OF ULTRAVIOLET ENTERTAINMENT

· Prototype unveiled at CES for delivering content that meets the UltraViolet specifications
· UltraViolet is a new industry standard that makes it easier for consumers to purchase, access and watch digital entertainment from a variety of locations and devices

2011 International Consumer Electronics Show, Las Vegas – January 6, 2011 – Akamai Technologies, Inc. (NASDAQ: AKAM), the leading provider of cloud optimization services, today announced its involvement with the Digital Entertainment Content Ecosystem (DECE) LLC, and demonstrated a prototype for delivering digital home entertainment content according to DECE’s recently announced UltraViolet specifications. UltraViolet represents a new way for consumers to enjoy greater choice and flexibility in how, when and where they collect and watch digital movies and TV shows.

While not yet commercialized, the prototype Akamai unveils at the Consumer Electronics Show (CES) will detail how its video delivery platform will allow consumers to experience UltraViolet movies and TV content they have purchased. It is also designed to enable retailers to more easily bring UltraViolet services to market. When consumers buy UltraViolet entertainment, the access rights to that content can be stored in their UltraViolet account and digital locker, which is accessible across multipleplatforms and devices. In addition to easy access, UltraViolet is designed to increase the value of digital entertainment by enabling streaming as well as download and burn to physical media functionality.

“One key facet of UltraViolet’s open-specs design is the ability for world-class infrastructure and B2B service providers like Akamai to accelerate retailers’ deployments, with premium-quality enablement and delivery on a cost-efficient basis,” said Mark Teitell, general manager of DECE. “As a member of DECE, Akamai’s prototyping of this UltraViolet experience is a great example of how individual companies’ initiative and market development will combine with our industry-standard technical specs to bring UltraViolet to consumers this year.”

The integrated Akamai video delivery platform and the UltraViolet digital locker are designed to enable leading retailers to quickly bring premium, turn-keyUltraViolet-compliant services to market. Beginning with the sale of physical media like Blu-ray discs that come with UltraViolet, retailers will be able to extend their relationship with consumers to include UltraViolet-compliant services to stream high definition content to connected devices such as Internet TVs and Blu-ray players, and mobile apps for smartphones and tablets.

“Over the last decade, Akamai has had the privilege of working with the top retailers, consumer electronic manufacturers and media and entertainment companies to accelerate their websites and enable high-quality digital media experiences,” said Steven Chester, Akamai Vice President of Film. “Akamai believes that our distributed global network is uniquely able to provide the scale, security and quality required for the industry’s next phase of business model innovation. Akamai’s goal is to enable retailers and content providers to take advantage of the incredible opportunity presented by UltraViolet, and be a part of bringing the next generation of premium home entertainment services to the market.”.

How Videogames Are Changing the Economy

Andy Kessler — Tue, 04 Jan 2011 17:53:55 +0000

This fall, the Chinese National University of Defense Technology announced that it had created the world’s fastest supercomputer, Tianhe-1A, which clocks in at 2.5 petaflops (or 2,500 trillion operations) per second. This is the shape of the world to come—but not in the way you might think.

Powering the Tianhe-1A are some three million processing cores from Nvidia, the Silicon Valley company that has sold hundreds of millions of graphics chips for videogames. That’s right—every time someone fires up a videogame like Call of Duty or World of Warcraft, the state of the art in technology advances. Hug a geek today.

What a switch. For centuries, the military has driven technology forward, fostering new waves of industrialization and corporate use. James Watt’s steam engine was perfected with the help of a cannon-boring tool. Computers were created during World War II to calculate artillery firing and to break codes. The military bought half of all semiconductors until the late 1960s. Even the first global-positioning systems (GPS) were funded by Congress, not for navigation but as a nuclear detonation detection system. Add microwave ovens from radar, Blu-ray discs from lasers, or Velcro and Tang from NASA, and there’s no doubt how much government acquisition programs have shaped our lives.

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Vizio Extends Battle Plan

Yukari Iwatani Kane — Mon, 03 Jan 2011 13:00:47 +0000

Vizio Inc., which put inexpensive flat-panel TVs in living rooms, now is setting its sights on cellphones and tablet computers.
Vizio, which has vied with Samsung Electronics Co. for leadership in U.S. sales of television sets, plans Monday in advance of the Consumer Electronics Show in Las Vegas to discuss its new mobile products. The company so far has been known for LCD TV sets, Blu-ray disc players and related accessories, and success with its new devices could put pressure on its rivals’ earnings.

The Irvine, Calif., company said its first mobile phone, to be called Via Phone, will have a four-inch screen, a front-facing camera for video calls, a rear-facing five megapixel camera and the capability to shoot video. The larger mobile device, the Via Tablet, will have an eight-inch, high-resolution screen; WiFi wireless connectivity; three speakers; and a front-facing camera for video conferencing. Both items will be introduced this summer and run Google Inc.’s Android operating system, providing access to the application store associated with the popular operating system, Vizio said.

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Blu-ray's Time Comes as DVDs Fade

Nat Worden — Fri, 24 Dec 2010 08:00:20 +0000

Blu-ray is emerging as a holiday hero for Hollywood as the film industry grapples with the rise of online video and a persistent slump in its most profitable source of revenue: DVD sales.

A combination of the weak economy, online piracy and low-cost rental and streaming services has driven continued declines in DVD sales this year, but strong growth in Blu-ray—premium-priced discs that offer a higher-quality home viewing experience—suggests consumers still have an appetite for physical home-movie products.

The trend has led some to question whether the electronics industry’s embrace of Internet-connected television sets and set-top devices has come too early, leaving consumers confused by the myriad of technology choices and content limitations of online video. That prospect has fueled concerns that the industry might not be allowing its Blu-ray business to live up to its potential.

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New Miramax CEO Lang Talks Digital Options for Movie Company

Kara Swisher — Thu, 09 Dec 2010 13:02:47 +0000

While the news has been be out there for a month, Miramax officially confirmed this morning that former News Corp. exec Mike Lang was named CEO of the Hollywood movie company.

What will be interesting about that for digital content players will be to see exactly what the man who was deeply involved in deals to buy the Myspace social networking site and also create the Hulu premium video service will do with Miramax’s rich trove of more than 700 award-winning films, including “Shakespeare in Love” and “Pulp Fiction,” in its movie library.

Lang left his post as EVP of business development and strategy at Fox Entertainment, including its film studio, broadcast network, sports and cable channel, earlier this year.

BoomTown spoke to him last night about his new job, which came after he advised the group that finally won Miramax–Filmyard Holdings.

“We are trying to take this company to the next level by exploring not only our traditional options, but our digital ones,” he said.

Miramax will not be aggressive in making new movies, but in taking advantage of the sequel rights it has to a number of hits, as well as the existing movies, which include four of the last 15 Best Picture Oscar winners.

“Our strategy is still emerging, but we want to exploit our assets in a variety of ways,” said Lang, who noted that could include everything from subscription deals with online video services, such as Netflix and Amazon, to digital content lockers in the cloud.

“We want people to be able to access our content across multiple medias,” he said. “We’ll take any payment, of course, but we also have to be smart about how we do these things.”

Lang, who has always had a foot in both worlds, said he thinks that digital media could develop similarly to the way traditional media has.

“There is no reason to think that digital will not emulate older media, with different windows in which subscribers watch content,” he said.

But, said Lang, he also thinks there is still life in physical media, such as Blu-ray players.

Since the deal just closed with former Miramax owner Disney, there are no employees yet for the Santa Monica, Calif.-based company.

But once he staffs up, Langs said he hopes to present a different picture of Hollywood to the digerati than the more typical wary hostility.

“Our goal really is we want to send a signal that we are a different company,” said Lang. “Not only about digital, but in being an innovative company.”

Here is the official press release about Lang:

MICHAEL LANG NAMED MIRAMAX CEO

SANTA MONICA, CA–December 8, 2010–Miramax today announced that Michael Lang has been appointed chief executive officer, effective immediately. Lang will be based at the new Miramax headquarters in Santa Monica and will oversee the renowned Miramax film library, which was acquired by Filmyard Holdings on December 3, 2010.

“I have known and worked closely with Mike for almost 20 years and have always respected his talents,” said Richard Nanula, chairman of Miramax and a principal at Colony Capital. “We are confident that he is the right person to lead Miramax in its next phase of growth.”

“I have always admired the Miramax library, which includes many respected titles and award-winning films,” said Lang. “Based on the quality of these assets, I believe bringing new life to this library–by working with traditional and new partners–will be an exciting and unprecedented story of growth and innovation. I am honored by this opportunity, and I look forward to working with my partners as we build a new kind of media company.”

Lang, 45, most recently served as a consultant to Filmyard in its acquisition of Miramax. Prior to that, he was EVP, Business Development and Strategy at Fox Entertainment, responsible for strategic initiatives across News Corp.’s entertainment assets, including Fox’s film studio, broadcast network, sports and cable channels. Lang played key roles in the acquisition of MySpace and the formation of the MySpace Music joint venture, and he led the creation of Hulu, with major broadcast partners. In addition, Lang was involved in Fox’s mobile, digital and video game initiatives. He joined Fox in 2004.

Prior to Fox, Lang served as a consultant on media-related investments. In the late ’90s, he was a founding executive of Z.com. Lang began his career at The Walt Disney Company in Strategic Planning. Lang earned his MBA with high distinction at Harvard Business School and he holds a Bachelor of Arts degree from Claremont McKenna College.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

Google TV: No Need to Tune In Just Yet

Walter S. Mossberg — Thu, 18 Nov 2010 02:07:11 +0000

The quest to bring the full range of Internet video to your TV in a simple way continues, but it isn’t going well. The latest team to try—Google, Logitech and Sony—has made an admirably bold effort, but, like others before, it has missed the mark, at least in its first effort.

[ See post to watch video ]

Google TV—software built into hardware made by Logitech and Sony—is very different from competing products, such as Apple TV and Roku. Unlike the others, it aims to merge Web video and regular TV in one simple interface, via one box, with one easily usable controller. Also, unlike the others, it isn’t limited to just customized channels that bring specific Web-video services to the screen. It lets you browse to almost any website with video, and play it on the TV.

But, for now, I’d relegate Google TV to the category of a geek product, not a mainstream, easy solution ready for average users. It’s too complicated, in my view, and some of its functions fall short.

You can get Google TV in three ways. One is through a small, black $300 set-top box called the Logitech Revue. The second is through a special Sony Blu-ray player that costs $400. The third is through a Sony TV with built-in Internet that starts at $600. All are much costlier than the $99 Apple TV or the $60 Roku, but they offer more of the Internet’s video and make the effort to integrate it with cable or satellite programming.

Logitech Revue for Google TV

Google TV cleverly piggybacks onto your existing cable or satellite box and can control it, at least to some extent. So there is no switching of inputs or remotes required, at least theoretically, to go between Internet video and regular TV—something that has plagued competing systems. But if you try to watch an Internet version of a show from a big network site or from Hulu on your Google TV device, it’s blocked, because the studios want to channel those shows through your cable or satellite box.

I tested Google TV using the Logitech Revue product, though I also met with Sony and had a briefing on their version, which looks and works pretty much the same. Setup took 12 steps and about 40 minutes and went pretty smoothly. It might have been worse if, as Logitech warns, your cable or satellite box requires you to install special cables to allow the Revue’s controller to operate it, or if you use a separate audio system. You need an HDTV with HDMI jacks on your TV and cable or satellite box to use the Logitech Revue.

The controller on the Revue is a wireless keyboard. Yes, that’s right, a keyboard, something you might find unattractive in the living room and no better than what you might use if you just plugged a PC into the TV.

Logitech does offer an optional “mini” controller for $130, but it is essentially a tinier keyboard with minuscule buttons and track pad crammed into a smaller space. It is more complex to operate than the big keyboard and much more complicated than a typical TV remote. Sony’s box comes with a similar, complex-looking mini-controller.

The key to Google TV, however, is the software, not the hardware. There is a home screen with a list of core functions, but, Google being Google, the principle activity is meant to be search. You just start typing what you want to see and Google TV brings up a list of hits from both regular TV and the Internet.

Unfortunately, in my tests, this search-and-viewing process was frustrating. For one thing, you only get a few results, and in my experience, they usually weren’t the right ones. When I was looking for the telecast of the Mark Twain Award ceremony for Tina Fey, all Google pointed me to were short clips on YouTube. I had to do a full Web search (a standard option in the brief list Google gives you) and then navigate through a standard Google results screen, which was unreadable at 10 feet without zooming in, to find the full show on the PBS website.

When I finally got to the PBS page, we watched the show, but it was noticeably pixelated on our large TV screen, even though my Internet connection is very fast.

In another case, I wanted to see the new Beatles-themed ads from Apple, but Google’s first results didn’t include them. The closest they came was an old fictional ad on the topic produced by a fan years ago. I manually navigated to Apple’s website, where the ads were prominent, but found that Google TV doesn’t support QuickTime, Apple’s video format. (The company says it plans to do so in a future release.) I knew the ads were also on YouTube, so I went there and eventually found them, with some effort, but they stuttered on playback.

To use the Logitech Revue for Google TV, you need an HDTV with HDMI jacks on your TV and cable or satellite box.

I was similarly frustrated by finding and using regular TV shows from my cable box. Unless you have a box from Dish network, Google TV can’t search in your recorded shows, or allow you, when it finds a show coming up, to set it to record. You’ll likely switch to your regular remote to do those things, which defeats Google’s aim of integration.

Also confusing is Google TV’s home screen, which has overlapping categories. For instance, there is a Queue, for some of your favorite podcasts and sites, and a Bookmarks for others. There is an Applications menu that takes you to specially designed apps that spare you from navigating the regular Web, such as the Netflix video service or Pandora Radio. But there is also a Spotlight category that has customized, simplified websites that, to an average user, amount to the same thing. And, so far, you can only search for the names of most applications, not any content they contain.

Google plans to add the Android Market of third-party apps to Google TV. That could be good, adding more functionality. But it also risks adding more complexity, unless Google redesigns the interface.

Google TV has its strong points. The integration of Web video and regular TV, while flawed, is a smart move. There is even a picture-in-picture feature that lets you keep watching TV while, say, using Twitter or any other Web function. And the Logitech box has an optional $150 camera that allows you to make free video calls. It worked well in my one test. Logitech also allows you to control the Revue from an iPhone or Android app.

But this is a 1.0 product. For now, I’d suggest average users dying to watch Internet video on a TV, either plug in a PC or use one of the wireless systems, like Intel’s Wi-Di, that wirelessly beam video from a PC to a TV. Or, you could wait for Google TV to improve.

Find all his columns and videos at walt.allthingsd.com Email him at mossberg@wsj.com.

Best Buy Joins Free Shipping Fray

Matt Jarzemsky — Wed, 17 Nov 2010 16:33:00 +0000

Best Buy Co. said it plans to offer free online shipping on certain items through Dec. 21, following a similar move by Wal-Mart Stores Inc. earlier this month.
The electronics retailer said Wednesday its offer is valid on “hundreds of thousands” of items, including all CDs, Blu-Ray and DVD movies and gaming software and accessories. Some items, such as Apple Inc.’s iPads, laptop computers and major appliances are not included.
Wal-Mart, the world’s largest retailer, plans to provide free shipping on more than 60,000 online items during the holidays without the need for a minimum purchase or subscription plan.
The strategy was seen as an attempt to counter a similar but broader deal from rival Target Inc. and grab sales from e-commerce leader Amazon.com Inc. From Nov. 21 to Dec. 11, Target plans to offer free shipping on more than 800,000 items, on orders of at least $50. Amazon already includes free shipping on many orders over $25.

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Hulu Plus Cuts Its Price, After All–By $2

Peter Kafka — Wed, 17 Nov 2010 12:18:57 +0000

Hulu, which had considered cutting the fee for its premium service in half, then launched out of beta at full price, has gone ahead and cut it after all–by 20 percent.

In a blog post announcing the move, Hulu CEO Jason Kilar doesn’t explain the rationale for the price cut, which comes less than two weeks after the service’s formal launch.* So feel free to make your own guess.

But the announcement highlights the core tension facing Hulu, which is jointly owned by Providence Equity, GE’s NBC, Disney’s ABC and News Corp.’s Fox: The best move for the online service is often at odds with its owners’ strategies for their businesses.

In this case, Kilar has been pushing for a price cut while the networks have been trying to effectively establish higher prices for their programming, in the form of new fees they’re demanding from cable providers (see: Fox. v. Cablevision, etc).

The new $7.99 per month price should make Hulu Plus more competitive with Netflix, which offers DVD rentals along with all-you-can-eat streaming for $8.99. So will another move to add more programming from NBC Universal, which Netflix got access to in September.

Hulu Plus is supposed to appeal to customers who want access to a deeper catalog than Hulu’s free service, and who want to watch the shows via devices like Apple’s iPad and Microsoft’s Xbox 360–all of which support Netflix.

Hulu says it will provide $2 credits to existing Hulu Plus subscribers who signed up during the trial phase this summer, and is also offering a few other promotional bells and whistles to push the service. From Kilar’s post:

• One free week trials for all new subscribers. In addition, current subscribers who joined during the preview period will receive a credit for one week of Hulu Plus toward their next month’s subscription.
• Two free weeks of Hulu Plus for both current subscribers and friends they invite through our referral program. Subscribers can learn more by clicking on the “Referrals” tab on their Hulu profile page.
• 11 weeks ($20 worth) of free Hulu Plus with the purchase of a Sony BRAVIA connected TV or Blu-ray player through January 31, 2011. (See sony.com/huluplus.)
• One free month of Hulu Plus with the purchase of a Roku device through December 15, 2010. (See roku.com/hulu.)

*Hulu points out that Hulu Plus only formally came out of beta today; two weeks ago it dropped the invite-only requirement for the service.

Why Boxee's Box Doesn't Matter–And Why It Does

Peter Kafka — Fri, 12 Nov 2010 14:43:02 +0000

I’ve seen lots of oohing and aahing about the new Boxee Box that rolled out Wednesday. I haven’t played with it yet, but for now I’ll assume it’s as cool as the gadget press says it is.

But let’s be clear about what the Boxee Box is, and what it’s not:

It’s not going to generate any significant revenue for the Web video company.
It’s not the way that Boxee imagines most people will end up using its software.
It is a starting point for the company.

Boxee’s real plan is both clear and a bit undefined: It wants to get its software on as many devices as possible–not just the Boxee Box but everything from Sony’s TVs to Microsoft’s Xbox 360s to Samsung’s Blu-ray players. And then it wants to build some kind of business based on advertising, consumer payments or both.

So Boxee isn’t trying to make money by licensing its software to hardware companies, any more than Netflix or Pandora is when they get their apps installed on different gadgets. It’s giving D-Link, the company that’s actually making the Boxee Box, its software for free. And it will do the same for other hardware companies.

Or put another way: Boxee competitor Roku is all about selling the Roku box. Boxee is all about getting its software in between video owners/distributors and video viewers, just like Google TV wants to do. The Boxee Box is important because, if it works, it will help Boxee convince other hardware companies that they need its software, too. (It might also help the company close its funding round, though I get the feeling it has investors ready to cut checks right now.)

For whatever reason, some of Boxee’s legion of fans–this is a company that packs concert halls for product rollouts–seem unclear about what the company is trying to do. So do some non-fans outside the company, like über-blogger Om Malik.

So yesterday, after Twittering about the topic with Malik, and then with Boxee investor Bijan Sabet, I got Boxee CEO Avner Ronen to stand in front of a Flip cam so he could explain the plan to all of you at the same time. We also touched briefly on Boxee’s relationship with Hulu. Ronen confirmed what I’d reported on Wednesday: Hulu Plus will come to the Boxee Box, but the free Hulu service won’t be available.

[ See post to watch video ]

Boxee Goes Hunting for Big Bucks

Peter Kafka — Mon, 08 Nov 2010 12:00:24 +0000

Boxee, which makes software that makes it easy to watch Web video on your TV, celebrates a big milestone this week, when the first Boxee-branded hardware starts shipping to consumers. The start-up is celebrating with an event at New York’s Irving Plaza.

But the company’s next big move likely won’t happen in public view: Sources say Boxee is out trying to raise a significant funding round, likely in the $10 million to $15 million range.

I’m told that existing investors Union Square, Spark and General Catalyst, which have helped Boxee raise $12 million to date, all plan to re-up, and will likely pick up half of the round. No word on who the new money is, or how close the round is to closing.

CEO Avner Ronen will need it sooner than later, though. His two-year-old company now has a significant payroll–33 people, at last count–and very little revenue coming in the door.

The new Boxee Boxes shipping this week won’t change that. Boxee isn’t trying to succeed by charging manufacturers like D-Link, which is making the devices, big licensing fees.

Instead, it’s trying to build a significant audience by getting its software on lots of hardware–TVs, Blu-ray players, game machines, etc.–and figure out a way to turn that into money down the line. Boxee is at 1.4 million users now, but that’s not nearly big enough. It wants Pandora- or Netflix-like scale.

This is an interesting time for Ronen to be out pitching: The existing TV industry is ripe for disruption. And the idea that consumers will watch Web video on their TV is moving from science fiction to reality, spurred on by the likes of Hulu, Netflix, Apple TV and now Google TV.

But Google TV’s mission–to merge Web video with traditional TV on one screen–is pretty much the same as Boxee’s. If Google figures it out, it would seem to crowd out the competition.

On the other hand, TV programmers who are wary of Google’s dominance might very well welcome multiple competitors. Which may be one of the reasons that Ronen is supposedly getting a much warmer reception from traditional TV executives than he used to get.

As Promised: Here's Hulu Plus, for Some of You

Peter Kafka — Tue, 29 Jun 2010 17:42:46 +0000

Here it is, finally: Hulu Plus. Otherwise known as: “The chance for some of you to fork over $9.99 a month to watch Hulu.”

What does that money get you?

As I’ve discussed before–most recently, last week–it gets you more shows than the free version offers, and more devices, most notably Apple’s (AAPL) iPad. It won’t get you ad-free shows, though. Hulu officials say the company will use the platform as a chance to extend the reach of its advertisers and that they’ve already got Nissan and Bud Light signed on.

Hulu and its joint venture owners–News Corp.’s (NWS) Fox, GE’s (GE) NBC, and Disney’s (DIS) ABC–have been working for most of the spring to get this worked out, but for now, it’s still an invite-only trial. Last week, I heard the trial might be limited to just 10,000 people, but I’ve yet to hear an official number from Hulu.

But! Hulu is allowing users with subscriptions to download a Hulu app for the iPhone, iPad, etc., to give the thing a test drive with a limited selection of shows.

Is it worth it? It should be interesting to see what consumers say. The pitch to gadget-centric folks: Check out all the hardware you can use! In addition to the iPad, Hulu Plus will work on the iPhone and iPod touch. Also included: Internet-connected TVs, Blu-ray players and game machines from Samsung, Sony (SNE) and Microsoft (MSFT).

The pitch to TV nuts: Look at all the shows you can see! But here the pitch is a bit more nuanced, because Hulu and its owners have had to hammer out, show by show, what they’re going to offer you. So it’s not an all-you-can-eat proposition, it’s an eat-a-lot proposition. Most notably, the service is light on content from cable networks, even those owned by the Hulu’s partners. Thus, no “Justified” from FX or “Top Chef” from Bravo.

That shouldn’t be a surprise, by the way: One of the main problems the original Hulu created was an increased tension between its owners and cable companies like Comcast (CMCSA), which fretted that Hulu was providing consumers with a reason to cut their cable subscriptions. Since FX, Bravo et al are getting paid by Comcast and the like for access to their shows, it will be tricky for Hulu to bundle those into its own service as well.

Is that a deal killer? I’ve found that with music subscription services, the absence of a single song I want rankles me in a slightly irrational way: Who cares if I can listen to millions of songs on demand for $9.99 a month? I want to listen to “99 Problems” right now, and I can’t! It’s easy to see Hulu Plus subscribers taking a similar view if they can’t find a favorite show when they want it.

But let’s wait and see what’s there first. Hulu says it has 120 seasons and 2,000 episodes available. Dig through and let me know if any absences are particularly problematic for you.

Press release, for those of you who like that kind of thing:

Hulu Launches Preview of Subscription Service Hulu Plus™

First subscription service to bring current TV programming from top broadcast networks ABC, FOX and NBC to 4 screens–computers, TVs, mobile phones and tablets–in HD Quality

Hulu Plus will complement the free, ad-supported Hulu service allowing consumers to enjoy more wherever, more whenever, than ever

LOS ANGELES—June 29, 2010–Hulu™ today launched a preview of Hulu Plus™, the first ad-supported subscription service to offer full current season runs of hit TV programs from ABC, FOX and NBC across multiple Web-connected devices, in HD, for only $9.99 a month. Now, TV lovers can watch full current seasons of shows such as Glee, Family Guy, Grey’s Anatomy, Modern Family, 30 Rock and The Office and full series runs or multiple back seasons of shows like The X-Files, Arrested Development, Desperate Housewives and Law and Order: SVU on PCs and Macs as well as on Apple’s iPad and iPhone, and select 2010 Samsung Blu-ray players, Blu-ray Home Theater systems, and TVs through Samsung Apps, in up to 720p high-definition resolution. Hulu Plus will also be coming soon to the PlayStation®3 (PS3™) computer entertainment system.

“We’re thrilled to begin sharing this revolutionary new service with subscribers” said Jason Kilar, Hulu CEO. “Hulu Plus is the first subscription service that offers consumers a wide array of today’s top current TV series on all four screens, in HD. With Hulu Plus, now your favorite TV shows love you back.”

View the Hulu Plus demo video for an overview of the full service.

More Content–Over 100 Content Providers, Hundreds of Shows, Thousands of Episodes
Hulu Plus builds on the extensive content offering of the ad-supported, free Hulu service and brings together one of the deepest offerings of TV shows, both current and classic, to subscribers in the U.S. Every episode of more than 45 current hit programs from ABC, FOX and NBC will be available all season long, from Modern Family and Grey’s Anatomy to Glee and Family Guy to The Office and 30 Rock. In addition, TV lovers will be able to enjoy full series runs and numerous back seasons of dozens of classic shows like The X-Files, Law and Order: SVU, Arrested Development, Saturday Night Live, Miami Vice, Ugly Betty, Quantum Leap, Buffy the Vampire Slayer, Angel, Roswell and Ally McBeal.

The Hulu Plus library aggregates content from more than 100 providers across broadcast networks, major studios and independent content creators. For content owners, Hulu Plus offers a compelling new way to distribute and monetize their programs across multiple screens.

For a full list of content providers and shows available, view the Hulu Plus Content page.

Access Anywhere–Across Four Screens on Multiple Devices
Subscribers to Hulu Plus will be able to watch their favorite shows not only on their PCs and Macs but also on select mobile phones, televisions (through gaming consoles and other boxes connected to the TV, or directly through Internet-connected TVs), Blu-ray players, and tablets, including Apple’s iPad and iPhone. Hulu’s preview launch device partners include the Apple iPad, iPhone 3GS, iPhone 4, and third-generation iPod Touch; select Samsung connected TVs, Blu-ray players, and Blu-ray home theater systems; and PS3 coming soon.

In the coming months, Hulu Plus will also be available on additional Sony Electronics Internet-connected entertainment devices including select BRAVIA® TVs and Blu-ray Disc™ players, as well as select TVs and Blu-ray players from VIZIO. In early 2011, Hulu Plus will launch on the Xbox 360. Hulu will continue to evaluate opportunities to extend Hulu Plus to other hardware devices and platforms as well.

For more information on supported devices and system requirements for Hulu Plus, please refer to the
Hulu Plus Device Partner page.

High Quality Viewing Experience–Streaming in HD
Hulu continues to push the quality of the online video viewing experience forward. Hulu Plus will bring many programs to users in 720p high definition to take advantage of the high-resolution screens on HD-capable devices. On select devices, adaptive bitrate streaming will ensure the highest quality video streams for the viewer’s bandwidth.

Advertising
Hulu Plus enables Hulu, for the first time, to extend its innovative and targeted ad platform across four screens, reaching Internet-connected users wherever they are. For the preview launch of Hulu Plus, Hulu is partnering with leading marketers Nissan and Bud Light who are expanding their reach with Hulu’s engaged and connected audience. Hulu expects to include additional advertisers for the broad consumer launch of Hulu Plus.

Pricing & Availability
Hulu Plus is available to U.S. consumers for $9.99 per month. Hulu Plus is currently available as a preview during which subscriptions are offered by invitation only to enable Hulu to ensure the highest quality experience for each user and to responsibly scale the service over time. To request an invite, visit www.hulu.com/plus.

Even without an invite, during this preview period consumers are welcome to download a free Hulu Plus application to the iPad, iPhone 3GS and 4, and third-generation iPod Touch, and other supported devices to test the experience with a limited selection of free episodes and clips. Hulu Plus is expected to be made widely available to the public in the coming months.

Samsung Defends the Third Dimension

Nick Wingfield — Thu, 27 May 2010 15:06:24 +0000

Samsung’s John Revie says 3D televisions aren’t a fad, and he believes there’s early evidence to prove it.

Revie, a senior vice president for the Korean electronics giant and one of its top bosses in the U.S., smiles when asked what he says to skeptics who say 3D-capable HDTVs will never catch on with the masses. Since they went on sale at the end of March, Revie says sales of Samsung’s 3D televisions are already outpacing those of Samsung’s successful LED televisions at the same stage following their introduction last year.

“Consumer acceptance and adoption of 3D has been terrific,” he says.

Doubters of 3D televisions have a long list of grievances against them. They’re expensive, with a $200 or more premium per set over otherwise comparable 2D televisions. Then there’s the money home theater buffs have to shell out to get the glasses necessary to see the three-dimensional images on screen and a 3D capable Blu-ray player.

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Why Will Google TV Be Any Different From WebTV? Or AOL TV? Or MSNTV? Or…

John Paczkowski — Fri, 21 May 2010 16:12:43 +0000

At its I/O developer conference Thursday in San Francisco, Google, predicted it would “change the future of television” with GoogleTV, an effort to marry broadcast TV with the Web. And in comments about the announcement, the company’s executives hawked the new software and hardware bundle with similarly aggrandizing pronouncements.

There was this from Google Senior Product Manager Rishi Chandra: “We’re going to have the same impact on the TV experience that the smartphone had on the phone experience.”

And then this from Google CEO Eric Schmidt: “TV has not been reinvented in any significant way since color television was brought in in the mid-1960s.”

With Google TV, Google clearly believes it is ushering in the rebirth of television. But, to Schmidt’s point, sure, TV hasn’t been reinvented in 50 years, but not for lack of trying.

The evolutionary path of the device is littered with failed Internet-TV initiatives. As the Time Magazine cover from Apr. 12, 1993 suggests, this is not a new idea. Nor has it been a successful one, at least not in implementations to date.

Steve Perlman’s WebTV, one the earliest products to bring the Internet to television, failed to gain significant market traction and didn’t do much better after it was acquired by Microsoft (MSFT) and turned it into MSNTV.

AOL TV, America Online’s (AOL) effort to extend its dominance from the PC to the television with a Web-TV hybrid, was scuttled in 2003, three years after it launched.

Brought to market with the help of some impressive hardware partners, like Hewlett-Packard (HPQ), Microsoft’s Media Center Extenders never really caught on.

Launched more recently, Yahoo’s (YHOO) Connected TV initiative hasn’t garnered much notice. Then there’s Kodak’s (EK) Theater HD Player, which doesn’t seem to be doing that well either.

So what makes Google (GOOG) think it’s going to succeed where so many have failed? Particularly with a platform that, frankly, looks a lot like TiVo (TIVO) with a Web browser?

Aside from arrogance, that is?

Well, there’s an impressive list of partners. Certainly, adoption of Google TV stands to benefit quite a bit from Sony (SNE), Logitech (LOGI) and Dish Network (DISH) baking it into television sets, Blu-ray players and set-top boxes. And sources tell me other electronics manufacturers will soon join them. Content partnerships with Netflix (NFLX) and Amazon (AMZN) will also help.

But the partnerships that matter most with an effort like this–cable company partnerships–are entirely absent. The simple fact is that cable companies like Comcast (CMCSA) and Time Warner (TWX) not only distribute the majority of the set-top boxes in the U.S, they also have a strong hold over content providers. Unless Google can convince them that their current business model is in need of something like Google TV, pushing the platform into the mainstream is likely to prove quite difficult.

[Image Credit: Time Magazine]

Google Announces Web TV Google TV

John Paczkowski — Thu, 20 May 2010 16:20:29 +0000

“The revolution we’re about to go through is the biggest single change in television since it went color.”

Intel (INTC) CEO Paul Otellini said that last week, hinting at the announcement Google (GOOG) made just moments ago: A new software platform for set-top boxes and televisions that promises to marry broadcast TV with the Internet. Its name: Google TV. Its tagline: “TV meets Web. Web Meets TV.”

Announced at this morning’s Google I/O event, Google TV’s purpose is, in the words of Senior Product Manager Rishi Chandra, “to bring the entire Web to the television set…to take the best of what TV offers these days and the best of what the Web offers and combine them.”

Anyone remember WebTV?

With Google TV, the aim is to rethink the navigation of TV and make it more like the Web. “The Web has a very simple and elegant model for finding information: A search box,” Chandra said. “We want to give you that same experience with television.”

To do that, Google (GOOG) has extended the breadth of its search to TV programming. The platform’s “quick search box” returns results from the Web, as well as TV listings. These include programs available for purchase on sites like Amazon (AMZN) and Netflix (NFLX)–both partners in this effort, apparently.

Says Chandra: “To a user it doesn’t really matter where I get my favorite content, whether it be live TV, DVR or the Web. We just want easy access….Google TV makes the Web a natural extension of the TV itself….It’s just as easy to go to any site on the Web as it is to go to any channel on your television.”

And to Web-based advertising as well, of course. Remember there are some four billion TV users worldwide.

“Many times I see and interesting ad, but I can’t do anything with it,” says Chandra. “But advertisers have Web sites and with picture-in-picture functionality, I can now click on an ad and see them….Now every ad on TV has the potential to become interactive.”

And presumably, there’s potential here for Google to make a small profit from each of them.

So how will all of this work? Google TV’s software is built on Android 2.1 and uses Google Chrome as its browser. Because of this, Android smartphones can be used as remotes and Android applications can actually be used on televisions running the platform–something some observers have been encouraging Apple to do with AppleTV for years. Google’s Android Marketplace will be accessible via Google TV.

On the hardware side, there will be Google TV set-top boxes, TV sets, and Blu-ray players. Sony (SNE) is developing a full line of integrated TVs and a Blu-Ray player as well. Logitech (LOGI) is producing a set-top box. And Intel (INTC) is providing Atom chips for all of them. We should begin seeing Google TV devices at Best Buy (BBY) this fall.

“We’re coming to market soon and we’re coming in a big way,” says Chandra.”…Our goal is to have the same impact on the TV experience that the smartphone had on the phone experience.”

Where Is My All-In-One Connected-HDTV, Apple?

John Paczkowski — Tue, 23 Mar 2010 22:37:59 +0000

Apple has long described its Apple TV business as “a hobby” and dismissed speculation that it is considering an Apple-branded television. Indeed, during a February appearance at the annual Goldman Sachs (GS) tech conference in San Francisco COO Tim Cook reiterated that stance: “We have no interest in the TV market,” he said.

In a note to clients today, Piper Jaffray analyst Gene Munster suggests that Apple (AAPL) reconsider its position on the television market. Home entertainment hardware is a $31.8 billion business, says Munster, and Apple could easily tap into it with a connected HDTV that offered immediate access to iTunes movies, TV shows, music and podcasts.

“Apple’s ability to deliver hardware, software and content that could replace an entire entertainment system with a single TV, puts Apple in a unique position for the emerging connected TV cycle,” Munster writes. “Apple already has several of the key ingredients for success in the connected TV market, many of which would differentiate Apple from current market players.”

Among those key ingredients:

Partnerships with over 100 TV networks and studios that could help Apple offer an a-la-carte iTunes TV Pass for select TV content
74 million iPhones and iPod touches–and, soon, untold numbers of iPads–that could all be integrated into a portable TV ecosystem
125 million active iTunes users, their credit card information and purchase history

This seems like a solid base upon which to build a connected TV business, particularly one designed to replace an entire entertainment system. Combine it with a reasonably priced iTunes TV subscription plan and you’d have a compelling offering indeed. But as I’ve noted here before, TV hardware is a tough business and the cable companies are wary of any offering that might threaten existing subscription fees.

Still, Munster is optimistic.

“Yes, TV hardware is a challenging, low-margin business if you don’t change the rules of the game; but we see potential for Apple to offer best-in-class hardware, software and content and charge a premium,” he says. “The bottom line, 32.4 million HDTVs sold in the U.S. a year is a real market, and if history repeats itself, Apple would find a way to compete in a commoditized market with a premium priced product.”

Munster notes that “An Apple Television would address more than just the HDTV market, as it would likely include audio and video features that could replace the TV itself, a Blu-ray player, a cable set-top-box, possibly a gaming system, an audio receiver made to combine these inputs and play music, plus the installation of these devices.”

Given Munster’s confidence in an Apple gambit in the television market, how long will it be before we see one? Two to four years, says the analyst–about the time we see an a-la-carte iTunes TV Pass.

Vudu Convinces Walmart to Pay Up: Why an Also-Ran Web Movie Service Sold for More Than $100 Million

Peter Kafka — Mon, 22 Feb 2010 21:37:56 +0000

As I wrote in January, Walmart is indeed interested in buying Vudu, the online movie service. I was off about one thing, though–the price.

Walmart (WMT) will be paying more than $100 million for the service, people familiar with the deal tell me. That’s much more than the $50 million I had previously heard Vudu was seeking and much more than industry observers thought it would get.

At this point I need to advise skepticism about reported sales prices, since they’re often inflated or include theoretical but seldom achieved “earnout” clauses. But my source tells me this will be a cash deal when it officially closes, which it hasn’t. No money has changed hands yet.

Vudu is an also-ran in the online movie business, which isn’t that much of a business to begin with. So why would the world’s biggest retailer pay a premium to get in?

Because Vudu’s management has convinced Walmart that its video-compression technology is something special, people familiar with the transaction tell me. Apparently, others think so, too: Vudu was able to attract multiple bidders. I’ve heard, but haven’t been able to confirm, that one of them was Cisco (CSCO).

Vudu has licensing deals with all the big movie studios as well, but that’s of secondary importance to Walmart, which has way more leverage with Hollywood than Apple, Netflix or Amazon (AMZN): The studios need Walmart’s physical reach much more than Walmart needs to get into the digital movie business.

Still, doesn’t hurt to make nice. Walmart and Vudu have been briefing the Hollywood studios today in advance of an official announcement, which could come later today.

Here’s some more background on the piece, from my January story:

After trying for two years to compete with Netflix’s DVD-by-mail business, Walmart gave up in 2005 and agreed to send its customers directly to Netflix (NFLX). In 2007, with the backing of all the big studios and tech help from Hewlett-Packard (HPQ), the retailer tried to launch a download service, a la Apple’s (AAPL) iTunes. But it abandoned that effort in less than a year.

Meanwhile, sources say Vudu has been seeking a buyer–in the form of either a big-box retailer or an electronics manufacturer–for some time without success. Internet executive Mark Jung ran the company for a year but left in November 2008; founder Alain Rossmann became interim CEO when Jung left and has kept the title since then.

Santa Clara, Calif.-based Vudu has raised at least $21 million from Benchmark Capital and Greylock Partners.

UPDATE: Walmart has officially announced the deal, noting that it is expected to close within a few weeks. No word on price except that it won’t be material.

Walmart Announces Acquisition of Digital Entertainment Provider, VUDU
Company takes next step to enhance home entertainment and information delivery options for consumers

BENTONVILLE, Ark., Feb. 22, 2010 — Walmart announced today a definitive agreement to acquire VUDU, Inc., a leading provider of digital technologies and services that enable the delivery of entertainment content directly to broadband high-definition TVs and Blu-ray players. The deal is expected to close within the next few weeks.

VUDU is a revolutionary service, built into a growing number of broadband-ready TVs and Blu-ray players, that delivers instant access to thousands of movies and TV shows directly through the television. Customers with broadband Internet access and an Internet-ready TV or Blu-ray player can rent or purchase movies, typically in high-definition, without needing a connected computer or cable/satellite service. New movies and features will be added continually, enabling customers to enjoy a product that continues to become more robust long after they have left the store.

“The real winner here is the customer,” said Eduardo Castro-Wright, vice chairman for Walmart. “Combining VUDU’s unique digital technology and service with Walmart’s retail expertise and scale will provide customers with unprecedented access to home entertainment options as they migrate to a digital environment.”

VUDU has licensing agreements with almost every major movie studio and dozens of independent and international distributors to offer approximately 16,000 movies, including the largest 1080p library of video on-demand movies available anywhere. Via their broadband Internet connection, users have the ability to rent or buy titles and begin viewing them instantly.

VUDU will continue developing entertainment and information delivery solutions such as VUDU Apps, a platform that delivers hundreds of streaming Internet applications and services to TVs and Blu-ray players with built-in Internet connectivity. VUDU has partnered with some of the leading names in Internet and media entertainment to offer applications on its platform including Facebook, Flickr, Twitter, The New York Times and The Associated Press.

“We are excited about the opportunity to take our company’s vision to the next level,” said Edward Lichty, VUDU executive vice president. “VUDU’s services and Apps platform will give Walmart a powerful new vehicle to offer customers the content they want in a way that expands the frontier of quality, value and convenience.”

VUDU, based in Santa Clara, Calif., will become a wholly-owned subsidiary of Walmart. The company is not disclosing financial terms of the agreement as the acquisition is not material to its first quarter earnings for fiscal year 2011.

Warner and Redbox Settle Up; Consumers Will Wait to Watch

Peter Kafka — Tue, 16 Feb 2010 21:19:29 +0000

Redbox, which looked like a major problem for Hollywood a few months ago, may be a little more palatable after all.

The movie studios have worried that Redbox’s $1-a-day rental model, which now accounts for nearly one out every $5 spent on DVDs, undercut every other revenue stream they had. But several big studios–including Sony (SNE), Lionsgate (LGF), Disney (DIS) and Paramount, a unit of Viacom (VIA)–have figured out how to live the company.

Meanwhile, three others–Time Warner’s (TWX) Warner Bros., News Corp.’s (NWS) 20th Century Fox and GE’s (GE) NBC Universal–have been fighting Redbox in court.

Make that two others. Warner Bros. just announced a settlement with Redbox. And given Warner’s size and clout, you have to wonder how much longer the two other studios will need to keep fighting.

This settlement looks an awful lot like the one that Warner and Netflix agreed to earlier this year. Which is to say: Warner got pretty much what it wanted–protection of its 28-day DVD sales “window”–and the other side argues that it’s okay, really.

The theory is that by giving up the ability to get movies to consumers right away, Redbox saves money on the DVDs it does get and will have access to a wider selection. Redbox also says this will help the company if its wants to get into digital distribution. Though unlike Netflix (NFLX), Redbox is a long away from being a plausible player in digital.

But make no mistake. This is a costly window and one that Redbox wouldn’t agree to unless the studios had regained the upper hand. From Pali Research’s Rich Greenfield, via a clairvoyant note (title: “It’s Not Easy Being Redbox, with 2010 Set to Get Even More Challenging; Provides Hope For Movie Biz”):

While Redbox management declined to answer a question related to whether there business would be impacted by 10% from a 30-day window (that Redbox agreed to and stopped pursuing workarounds), we believe 10% is far too low. Redbox relies on the new-release business, if it did not, it would not be suing three studios. We suspect the impact is closer to 35-50% than 10% (albeit Redbox’s cost per DVD would come down), particularly as once a window is established the studios will spend heavily to hammer home to consumers that movies are available other places before Redbox (which generate higher gross profit dollars to the studio per transaction than via Redbox).

Release:

WARNER BROS. HOME ENTERTAINMENT AND REDBOX ANNOUNCE A MULTI-YEAR DISTRIBUTION AGREEMENT

Companies Agree to 28-Day Window for DVD and Blu-ray Titles

BURBANK, Calif. And OAKBROOK TERRACE, Ill, February 16, 2010 – Warner Bros. Home Entertainment Group and redbox today announced a new multi-year distribution agreement that will make Warner Bros. new release DVD and Blu-ray titles available to redbox customers after a 28-day window. The agreement also marks the end of the lawsuit that redbox filed against Warner Home Video in August 2009.

“We are very pleased to have had the opportunity to sit down with redbox and negotiate an arrangement that benefits both parties and allows us to continue making our films available to redbox customers,” said Kevin Tsujihara, president, Warner Bros. Home Entertainment Group. “The 28-day window enables us to get the most from the sales potential of our titles and maximize VOD usage.”

The new arrangement provides redbox with reduced product costs, sufficient quantities of product and optimal stock levels four weeks after street date as well as extends redbox’s access to Blu-ray titles, which redbox is currently testing in select markets. The agreement also provides Warner Bros. the opportunity to maximize the sales of new release titles as well as video on demand and other forms of digital distribution.

“This agreement enables redbox to fulfill our commitment to providing consumers affordable and convenient home entertainment,” said Mitch Lowe, president, redbox. “By agreeing to a delayed release date, redbox can now acquire Warner Home Video titles at a reduced product cost, preserving value for our consumers and increasing customer access to Warner titles at redbox locations nationwide.”

Warner Home Video and redbox will be implementing delayed availability during the month of March and will reach a four-week window by March 23 with the release of The Blind Side. The new agreement will run through January 31, 2012. Redbox has also agreed to destroy Warner Home Video content following its lifespan in kiosks.

“The 28-day window for redbox balances the economics of our relationship while continuing to offer great value to their customers,” said Ron Sanders, president, Warner Home Video. “This accord establishes a mutually beneficial relationship that will foster an ongoing and productive partnership.”

Warner Bros. is currently a leader in many home video categories including total video (DVD and Blu-ray combined), Theatrical Catalog video, TV on DVD, and Blu-ray and will ensure the DVD rental company access to sufficient quantities of Warner Home Video titles including The Time Traveler’s Wife, The Box, The Informant!, Where the Wild Things Are, The Blind Side, and Sherlock Holmes.

Netflix CEO: iPad, iPhone Streaming Not a Priority

John Paczkowski — Fri, 29 Jan 2010 15:53:02 +0000

While unveiling the iPad this past Wednesday, Apple CEO Steve Jobs touted it as “the best device” for watching mobile video. And that may well prove to be the case–but not for mobile video from Netflix, because at this point, the DVD-by-mail pioneer has no plans to bring its subscription-based streaming service to the iPad, or to the iPhone, for that matter.

Interesting, considering that the percentage of Netflix (NFLX) subscribers who streamed more than 15 minutes of video in Q4 2009 was 48 percent, compared with 28 percent for the same period in 2008.

Asked about the possibility of making Netflix’s “Watch Instantly” content available on Apple’s (AAPL) mobile devices during the company’s earnings call Wednesday, Netflix CEO Reed Hastings seemed surprisingly indifferent to the idea.

“We haven’t yet done or submitted an iPhone application,” Hastings said. “We are optimistic that post the Google Voice brouhaha it would be approved. There is really no way of knowing in advance what Apple’s stance would be on that. Of course, that application if it works on the iPhone it would work on the iPad.”

Hastings added, “It is not a huge priority for us because we are so focused on the larger screen. Until we get our TV ubiquity and our Blu-ray ubiquity and we are getting close on video game ubiquity we would next turn to the small screen. It is just not a primary movie watching [device]. It is something we will get around to but it is not in the near-term.”

Here are video highlights of Hastings’s conversation with MediaMemo’s Peter Kafka at our interview event in Las Vegas earlier this month:

[ See post to watch video ]

Is Walmart Ready to Try Web TV Again, With Vudu's Help?

Peter Kafka — Tue, 12 Jan 2010 11:00:10 +0000

Walmart has tried twice to deliver movies and TV shows to its customers. Is it ready to try again?

Maybe. Sources tell me Web video start-up Vudu is in “meaningful” acquisition discussions, and industry executives believe Walmart is the likely buyer.

Vudu executives declined to comment. I’ve lobbed a call into the Walmart (WMT) press center but haven’t heard back.

It’s a deal that makes some sense on paper: Vudu is one of many services that give consumers a chance to rent or buy movies over the Web, but it hasn’t gotten much traction. “It’s a beautiful product and a really great service, in need of distribution,” says a person familiar with the company.

And Walmart has tried video delivery twice before but backed away each time. Acquiring a tech team at the right price could help it make a third effort.

After trying for two years to compete with Netflix’s DVD-by-mail business, Walmart gave up in 2005 and agreed to send its customers directly to Netflix (NFLX). In 2007, with the backing of all the big studios and tech help from Hewlett-Packard (HPQ), the retailer tried to launch a download service, a la Apple’s (AAPL) iTunes. But it abandoned that effort in less than a year.

Meanwhile, sources say Vudu has been seeking a buyer–in the form of either a big-box retailer or an electronics manufacturer–for some time without success. Internet executive Mark Jung ran the company for a year but left in November 2008; founder Alain Rossmann became interim CEO when Jung left and has kept the title since then.

Santa Clara, Calif.-based Vudu has raised at least $21 million from Benchmark Capital and Greylock Partners. I’m told that when the company was marketing itself last fall, it was looking for a sale price of $50 million or more. But it may not have much leverage to command a premium.

Vudu started out by marketing an Internet-connected box that consumers plugged into their TVs, but that offering seemed to underwhelm customers (as well as All Things D‘s Katie Boehret). It is now focused on building that technology directly into TVs and Blu-ray players and marketing itself as a Netflix-like service.

The company’s supposed strengths are a video compression technology that makes it feasible to stream movies in high definition and a peer-to-peer architecture that cuts down the cost of delivering large files. UPDATE: Vudu reps tell me they no longer use P2P for file delivery.