The company is pulling back the covers (a bit) on its plans to produce kids’ shows and sitcoms via its “Amazon Studios” unit, which has already been dipping a toe into the movie business. Word of the new push leaked out earlier this year, via hiring notices — such a useful way to track a secretive company! — and now Amazon is ’fessing up.

A bit. Amazon Studios head Roy Price won’t discuss his budget, or the number of shows he intends to make, or a timeline for getting them on the Web. But he is willing to sketch out a couple of notions:

• Like the movie effort, Amazon is soliciting scripts for new productions via the Web, and will pay out modest fees — $10,000 for an option, $55,000 if a show gets produced, plus possible royalties — for stuff it likes.
• The big difference between his TV effort and his movie effort is that Amazon intends (with some exceptions) to actually make the shows, and distribute them via its own “Amazon Instant Video” offering. (For the movie effort, Amazon is feeding scripts it likes to Warner Bros., which will decide what to do with them.)
• Price says the shows he does make should look and feel like “real” TV shows, with commensurate production budgets.

Lots of wiggle room in all of this. So the big news is that Amazon is formally declaring that it’s in the original video business — just like Google, Hulu, Netflix, Yahoo and lots of other tech guys.

Not surprisingly, Price doesn’t want to talk about Amazon’s place in that newly formed constellation. But he does point out that this isn’t the first time the company has started making its own media. Amazon has already launched its own book-publishing business, and has started poaching “real” authors for that effort, and that has traditional book publishers terrified.

Hard to see Hollywood freaking out about this right now — particularly when they’re making a ton of money selling Amazon their old shows. But if this ever takes off, that could change.

But boy does it sell a lot of software: iTunes sales came in at $1.9 billion last quarter, which puts the digital store at a run rate of $8 billion.

That’s up 35 percent from a year ago, when iTunes did $1.4 billion.

During Apple’s conference call today, CFO Peter Oppenheimer answered a query about delays getting new content into iTunes with a boast about the depth of the store’s music and video catalog. But as always, my assumption is that the bulk of that growth is fueled by app sales, not traditional media sales.

Who wants to haul their discs to a store — and take out their credit card — to do something that should work at home, for free?

BTIG Research’s Rich Greenfield has the same take, more or less. But Greenfield has actually gone ahead and tried the service out (registration required), and he thinks the experience itself is … really good:

“We believe Vudu is a very well done iVOD/EST service and, at worst, Vudu will gain far greater consumer awareness from the industry’s disc-to-digital marketing campaign.”

I still think the overall concept is flawed here. If Hollywood wants people to embrace this idea, which is designed to promote high-margin movie purchases instead of lower-margin rentals, it shouldn’t involve travel and an upfront payment.

And some of the fine print will trip people up, as well. As I noted last month, Walmart’s scheme comes with some important asterisks, like the fact that Disney/Pixar titles won’t work, and that iPad users can only stream the files to their machine, and can’t download them.

But give Walmart credit for a digital product that seemingly does at least some of what it ought to do, right out of the box. Greenfield has a seven-minute walk-through of the process (spoiler: contains no violence, nudity or adult themes), if you’re interested:

iStockphoto | A-Digit

You’re not that special. Turns out you might fall into a category of digital consumers just like yourself.

IBM’s new Digital Consumer report, which surveyed 3,800 adult consumers in China, France, Germany, Japan, the United Kingdom and the U.S., showed a large increase in usage of digital devices and content services over the past few years, with 78 percent of consumers calling themselves digital device adopters this past year. It also identified four distinct personalities when it comes to digital consumption:

Efficiency Expert: This is the digital consumer who uses digital devices and services to simplify things. They use the fewest devices but still access the Internet via mobile phones, send emails rather than letters, use Facebook to communicate with people, watch video on demand at home and shop online. However, some surveyed still prefer in-store shopping to online.

Content King: There’s a reason why it’s “king” and not “queen.” This category is composed mostly of males, but represents just 9 percent of the global sample. According to Saul Berman, global strategy consulting leader of IBM’s Business Services division, these digital consumers are the gamers, the newshounds, the movie buffs. “They prefer everything to be connected to their console or TV, often watch TV shows online, they regularly download their media and play games with people online,” Berman said.

Social Butterfly: Some 15 percent of consumers surveyed reported that they frequently maintain and update social-networking sites. This group has a strong female skew, with a high frequency of digital consumption. They might own fewer devices, but they maintain more social-networking profiles, they visit these sites several times a day, they’re “tagging” others on sites, and they’re often viewing what friends are posting.

Connected Maestro: This group is indicative of where the future is headed, Berman believes. About 35 percent of those surveyed take a more advanced approach to media consumption by using mobile devices and smartphone applications to access games, music and video, or to check news, weather and sports. They use instant messaging. They own the greatest variety of digital devices, and they combine some of the behavior of a Content King and a Social Butterfly. This group also has a slightly male skew and, as Berman said, “the majority of this group say they now read digital books over printed ones.”

Interestingly, the study notes that age is no longer the most distinct segmentation when it comes to putting digital consumers into boxes. A full 82 percent of digital adopters are now between the ages of 10 and 64. “Contrary to popular belief, not all early adopters are college age; in actual fact 65 percent are aged between 55-64,” the study notes.

“Making tech simple for that audience is a key factor,” Berman said, “and they’ve seen the benefit in potential by watching people who were the initial early adopters.”

That still doesn’t necessarily mean you’re off the hook in terms of setting up printers and fixing the Internet when you’re visiting home for the holidays.

Readers: Which category do you fall into?

(Image: iStockphoto | A-Digit)

And now it appears the e-commerce giant has even more plans in the works.

A Wells Fargo Equity Research note distributed this week writes: “A key discovery this month is that Amazon has plans to expand the Prime membership benefits beyond the Amazon.com platform.”

The note points to a number of job descriptions, disclosing that Amazon is creating a “Prime Expansion” team, tasked with driving awareness of the Prime program and expanding the scope of its benefits, geographically and on and off Amazon.

So what areas or new benefits might Amazon be expanding into?

It’s not clear, and an Amazon spokesperson did not return emails seeking comment.

But first, let’s throw out the areas where Amazon won’t be expanding to — other online retailers. Today, Amazon sells pretty much everything under the sun, so it would be very hard for it to find a retailer that would be comfortable with letting Amazon run its loyalty program, even if it does mean offering perks like free shipping.

“I think any retailer would have to have their head examined if they allowed themselves to be a customer-acquisition tool for Amazon Prime,” said Mike Golden, president of ShopRunner. “Especially if it’s under the assumption that Amazon won’t compete with them. Because people have been proven false every single time.”

Of course, Golden has his biases.

ShopRunner, which includes eBay as an investor, operates a service — much like Prime — that offers shoppers free two-day shipping across a variety of retailers, including Toys “R” Us and PetSmart, for $79 a year.

But even if other retailers are out of the question, there are still some opportunities Amazon could be pursuing. For instance, it could work with other delivery services that don’t compete with Amazon.

ShopRunner has already demonstrated this through a partnership with Domino’s Pizza, which provides free delivery to ShopRunner members. Other scenarios with national scale could include Ticketmaster or Fandango, which have service fees at checkout.

Another internal program that Amazon is working on that could be a candidate for Prime is free access to Amazon Locker, which allows consumers to pick up packages from secure mailboxes at 7-Eleven. The lockers address a segment of the market that can’t receive packages at their homes because people work during the day and there’s nowhere for a delivery to be dropped off, or because it’s likely to get stolen.

So far, Amazon Prime is considered a very successful program that increases loyalty to Amazon.com — for an annual fee. As is typical with Amazon, it does not disclose how many Prime members it has, but Baird Equity Research estimates that there’s somewhere between seven million and 11 million members.

With even more benefits, it will make Prime — and Amazon overall — even harder for consumers to walk away from.

(Image courtesy of www.cicadamania.com)

The gist of the Department of Justice’s lawsuit against Apple and five major book publishers: The publishers, assisted by Apple, conspired to fight back against Amazon’s pricing power in the growing e-book market.

The Wall Street Journal, which has been on the story for some time, has plenty of background here. And there’s some great, baroque detail in the DOJ’s complaint, which you can read over here. (New York venues of choice for alleged antitrust meetings: The “Chef’s Wine Cellar” at Picholene, and Alto, a now-defunct Italian restaurant.)

But there’s also this odd, scintillating, throwaway line in the middle of the complaint, where the DOJ casually mentions that before Apple thought about fighting with Amazon, it thought about a different strategy: Ruling the world in concert.

From the complaint:

In addition to considering competitive entry at that time, though, Apple also contemplated illegally dividing the digital content world with Amazon, allowing each to “own the category” of its choice — audio/video to Apple and e-books to Amazon.

Really? So how would that work? And why didn’t Steve Jobs and Jeff Bezos end up conspiring to work together? The DOJ doesn’t explain any of this — it simply moves on to the rest of its argument.

And here’s where we need to point out that it’s not uncommon for lawsuit complaints to contain big helpings of theatrics, with accusations and context that won’t end up having any bearing in court, if it gets that far.

Indeed, several of the publishers that the DOJ is suing this morning are expected to settle with the government this afternoon — can’t get more theatrical than that. (Actually, they’ve already settled, says Bloomberg.)

Still, that’s an especially juicy bit of red meat to dangle in front of the public, so if the DOJ has more to say about the alleged would-be conspiracy, we’d love to hear about it. Apple declined to comment, but I’ll update if that changes.

(Image courtesy of Shutterstock/Everett Collection)

If the Titanic happened does that mean Avatar happened???

– PRguitarman, via Twitter

This morning, for example, Google’s YouTube is announcing a deal to rent movies from Viacom’s Paramount studio. The move will bring some 500 titles to Google, ranging from newish hits like the “Transformers” movies to oldies like “The Godfather” trilogy; users will also be able to rent the movies from Google’s new Google Play hub.

The announcement means that Google, which has been struggling for years to figure out Hollywood, now has rental deals with five of the six big studios: Paramount, Sony, Time Warner’s Warner Bros., Disney, and Comcast’s Universal.

The lone holdout is 20th Century Fox, which, like this Web site, is owned by News Corp. All six studios rent their movies via Apple’s iTunes. It’s worth noting that Paramount is one of the few studios that has experimented with direct-to-customer sales and rentals, via its own Web site.

Just arrived at the ocean’s deepest pt. Hitting bottom never felt so good. Can’t wait to share what I’m seeing w/ you

–Director James Cameron tweeted from the deepest part of the ocean floor when he became the first solo explorer to reach the Challenger Deep

And the ad business still isn’t sure what to make of Facebook: Grand new marketing paradigm, or a collection of 800 million people who don’t seem very interested in clicking on ads?

Keep that in mind during Facebook’s big marketing event today. Sheryl Sandberg and company have new stuff to show off, and we should pay attention to it.

But they’re also still selling the sellers, trying to convince them to send real money — Google-sized money, or better yet, TV-sized money — their way.

On to the new stuff. Most industry folks I’ve talked to are expecting two big reveals this afternoon:

• New ads for Facebook’s mobile apps, which until now have been ad-free.
• A change in the way ads show up on Facebook.com, which is supposed to make them bigger and more “social.”

Mobile ads are a big deal, for obvious reasons. Half of Facebook’s users access the site over phones, but to date that hasn’t made Facebook a dime. Mobile money has to come sooner than later, and it wouldn’t be a bad idea to talk about it before the company goes public.

Lots of smart ad people, though, are paying even more attention to the new ad strategy Facebook is rolling out for its Web site. This one doesn’t seem as sexy, in part because we’ve already heard about it, via a GigaOM leak last week.

And it’s also a little inside baseball, because it has to do as much with the way the ads are produced and distributed as the way they look.

The takeaway is that Facebook is encouraging advertisers to create ads based solely on the content they publish to their own Facebook pages — “Anything you can post on a page, you can turn into an ad.” One reward for advertisers who use the option: Facebook will make their stuff easier to see, if users like it.

And, of course, if users like it, some of them will spread it on their own, just as they do with everything else they like on Facebook. Even better.

If advertisers want to, they can still carpet-bomb Facebook users with ads that no one likes. And Facebook will continue to sell “direct response” ads — the Web industry’s equivalent of late-night infomercials.

But what Facebook really wants is for advertisers to spend time creating stuff that looks and acts just like the stuff Facebook users already like. (Worth noting that this is quite similar to Twitter’s ad strategy, which treats ads like tweets, and vice versa. Also worth noting: Just like Twitter’s ad strategy, this one should work very well on the limited real estate available on mobile phones.) It’s supposed to promote “earned” media — the industry’s name for promotion that fans/users/consumers end up doing for free, on their own.

The risk here is that Facebook will end up constraining some advertisers’ spends, because they’ll have a harder time shoving stuff in front of people who don’t want to see it — i.e., the traditional ad model.

If you’re a movie studio with a would-be blockbuster to promote, you’re not just going to bank on (really cool) viral videos. You need to jam your messages in front of as many eyeballs as you can. And if Facebook won’t let you do that effectively, you’ll just keep doing it on TV, like you always have.

If the new plan works, though, Facebook ends up with a lucrative virtuous cycle: Advertisers make stuff that users like, so they tell their friends about it, so the ads travel further, and more persuasively, and advertisers get more for their buck than they can anywhere else. Repeat — and turn that $3 billion a year number into something really big.

But if Comcast wants to, it can change that overnight, as The Wall Street Journal’s Sam Schechner reported yesterday. The cable giant’s new content deals allow it to sell its stuff nationally, to anyone with an Internet connection, if it wants to.

Comcast insists publicly that it has no interest in doing that. Privately, its executives say the same thing. They say they can’t figure out how to market and support a $5-a-month digital subscription service to noncustomers and still make money.

What if they added more content and sold it for $8 a month, like Netflix does? “That still wouldn’t work for us,” one of them told me yesterday. “We can’t figure out how it works for Netflix, either.”

So if things don’t change, then Streampix will work primarily as an anti-churn tool for Comcast — a carrot they’ll dangle to keep current subscribers happy. And it may also keep a few of them from signing up for Netflix, or renewing the subscription they already have.

Which means it will join the growing number of Netflix killers that aren’t really Netflix killers, because they don’t have the same breadth of content, or are only available to a certain number of customers.

Over the last couple of years, Amazon, Hulu and Dish/Blockbuster have all launched Web video subscription services that offer Netflix-like services. But, so far, none of them have really gone head to head with Reed Hastings.

Later this year, though, Verizon and Redbox will begin selling their own Web video service, and the companies have been very clear that that one won’t be limited to Verizon customers.

And it will definitely feel like a competitive service. There’s a good chance, for instance, that movies from the Viacom-backed Epix pay-TV channel, which currently run on Netflix, will appear on the Verizon service, too.

So that’s one full-fledged (potential) Netflix killer launching this year. And another one that might turn into one, with a flip of the switch. That ought to keep the Netflix executives, and investors, occupied for a bit.

The agreement represents an effort to resolve a standoff that dates to 2009, when the World Trade Organization ruled that China’s policy of allowing 20 foreign films a year to be shown there violated international trade rules.

Read the rest of this post on the original site »

Streaming is the future. We’re focused on it. DVD will do whatever it’s going to do. We’re not — we’re going to try to not hurt it, but we’re not putting a lot of time and energy into doing anything particular around it and then we’re focused on, how do we take advantage of this incredible global streaming opportunity.

Now, with that context in mind, consider this news: Netflix announced last night that customers could sign up directly for a $7.99-a-month DVD-only plan by visiting dvd.netflix.com.

Some of my fellow typers believe that this is a sign that Netflix has re-embraced the DVD business, which has much better margins than the streaming business, but is dropping away, quarter by quarter.

That would be a good narrative, but I don’t think it’s true.

Consider:

• This is the same $7.99 DVD-only plan that Netflix introduced last July.
• It’s the same URL that Netflix introduced last July. Apparently, it must have gone away at some point between then and now, but the fact that no one seems to have noticed its disappearance is telling.
• New customers who head to the Netflix home page will have no way of knowing that Netflix offers a DVD-only plan. If they click around a bit, they’ll find a note telling them they can add DVDs to a streaming-video subscription plan, but no word of the disc-only option.
• It remains nearly impossible to give someone a Netflix gift subscription that includes DVDs.

This doesn’t sound like a newfound appreciation for the DVD business to me. It sounds like Netflix is continuing to “not put a lot of time and energy into doing anything particular around it.”

So why bother with the new/old URL at all? I asked Netflix PR for comment; if they find the time or energy to respond, I’ll update here.

YouTube is now insisting on the ability to play all videos from content “partners” — video owners that share ad revenue with the site — on all platforms, including mobile phones and connected TVs.

Previously, some video owners have held back their content from some devices, in hopes of making separate deals with other distributors, like Netflix or Microsoft’s Xbox unit.

But now YouTube says it wants to put all its stuff everywhere. The site informed partners about the change at the end of January, and required them to sign off on the deal within a few days, via an electronic “click form.”

The terms don’t affect any of the video makers that YouTube is working with via its new “channels” program, because those companies had already agreed to multi-platform distribution. And there will also be a class of very big media companies that may not have to play by the same rules, either.

Video music site Vevo, for instance, keeps some of its clips off of some platforms, including the YouTube app on the iPhone, because of technical issues like ad servers and branding. That won’t change anytime soon, according to people familiar with the site. I wouldn’t be surprised if big Hollywood studios or TV networks also have carve-outs that won’t get changed.

But there is still a group of video-makers who have millions of subscribers and have generated hundreds of millions of video views, and YouTube’s change will affect them.

The ones I talked to about the new terms — who don’t want me to print their names — say they’ve accepted them reluctantly, because they need the distribution and/or dollars that YouTube provides.

And it’s hard to tell if this actually puts the kibosh on, say, an Xbox deal — maybe Microsoft will still cut them a check. Or maybe Microsoft was never going to cut them a check, anyway.

But it’s certainly good for consumers. There’s a logic behind media companies’ efforts to distinguish a PC screen from an iPhone screen, or a tablet screen from a TV screen. But only if you’re in charge of making biz dev deals for a media company. If you watch video, a screen is a screen is a screen.

“If you sell movie tickets or DVDs, like we do, for a living, you don’t really have a customer relationship,” the Legendary Entertainment CEO said, speaking at the D: Dive into Media conference on Tuesday.

Making great content is obviously paramount, but for a studio that did “The Dark Knight” and “The Hangover,” the next step is really engaging with fans. And that process, he said, can no longer wait until a film is done.

“How can we seed things early, and make fans discover things, and help them feel in touch as the process unfolds?” Tull said.

There are clearly more choices with which Hollywood studios have to compete, with Angry Birds and a million other things vying for the same free time.

“When I was a kid, you might have HBO if you were wealthy, or rent movies, (but) you were always looking for something to do,” Tull said. “Now there’s so many choices.”

That’s where SnagFilms comes in. The start-up has distribution rights to more than 3,000 indie movies, which it shoots out to platforms like Netflix and Hulu. The four-year-old company is best known for the documentaries it puts out, like “Casino Jack,” the story of the disgraced political fundraiser Jack Abramoff; others include “Super Size Me” and “Enron: The Smartest Guys in the Room.”

Now SnagFilms has raised another $7 million, following up a $10 million round from a year ago. Earlier investors like Ted Leonsis, New Enterprise Associates and Comcast have re-upped; new investors include Terry Semel, the former Warner Bros. studio and Yahoo boss.

SnagFilms started out by asking bloggers and other Web site operators to embed its films on their sites for free. It made money by selling ads against the films and sharing revenue with the movie owners.

It still does that, but it has expanded to offer free movies on other platforms, like the iPad and Android tablets. It has also started making its movies available on pay-per-view outlets like Apple, Amazon and Comcast’s video-on-demand channels. CEO Rick Allen says that by the end of the year, revenue from transactions will eclipse the company’s ad dollars.

The interesting question for SnagFilms — and a whole lot of digital video companies right now — is whether there’s a way to get consumers to identify and value what distributors do. If they do, then these guys can build lots of value, as consumers learn to trust them as a good source for small, quirky films the big guys missed.

(Image courtesy of Shutterstock/James Steidl)

What is new, though, is that start-up cloud service SugarSync is now available on Samsung’s new “smart” TVs.

For Samsung TV owners, having SugarSync as part of AllShare Play means that they can upload media from any device — not just a Samsung PC or Samsung smartphone — and then wirelessly access it through the TV. And they can access uncompressed media, so if they’re storing high-resolution or HD media through SugarSync, that’s what they’ll get on the TV. It’s not clear which specific models of Samsung’s smart TVs will have SugarSync as part of AllShare, but Samsung has stated before that the service will be available on TVs, PCs, smartphones, tablets and digital cameras.

For SugarSync, it’s a first step into the TV market, as well as a leg up on its direct competitor, Dropbox, which currently doesn’t have a presence in TVs. Dropbox, which claims 50 million users, declined to comment on whether it is working with manufacturers to get its app on smart TVs. The Dropbox app can be accessed through browsers on smart TVs, but it seems like some Dropbox fans have been itching for a dedicated app on television sets.

One of the features that sets SugarSync apart from Dropbox is the five gigabytes of free storage space offered to new customers (though Dropbox does offer 5GB of free storage to HTC mobile phone owners). Keep in mind that a single two-hour HD movie can take up approximately 10GB. But SugarSync CEO Laura Yecies says its cloud-sharing service on TVs is meant more for short home movies and photos, rather than feature-length movies or other file types, like work documents.

Still, if you’re storing lots of home movies in your account — think of all those videos you shoot on your smartphone — that 5GB of space will fill up pretty quickly, which means you’ll be prompted to upgrade to a premium SugarSync account.

It’s not the first partnership SugarSync has forged with hardware makers, and Yecies said the company is exploring more. Last year, Lenovo said its Think-branded laptops would ship with SugarSync on them, and Fujitsu began including SugarSync on its ScanSnap scanners. SanDisk has also created an app for Android smartphones that automatically dumps media from the phone’s memory card to SugarSync, in order to free up space on the device.

Overseas, the company has also partnered with carriers Korea Telecom and France Telecom Orange, as a cloud service offered with mobile or broadband Internet service.

SugarSync launched under Yecies in 2008, after having previously operated under the name Sharpcast. While the start-up says its customer base grew sixfold last year, it declined to say how many total users it has, except to say it’s in the millions.

“TVs are a big step for us, in terms of convergence,” Yecies said. “All the devices are coming together, people are starting to understand the cloud, and the reality is it’s really becoming mainstream.”

In case you’ve missed the sky-high predictions for the cloud market, research firm IDC sized the cloud sharing and sync market at $724 million in 2009, and projects that it will grow at a compound annual rate of 28.2 percent, to over $2.5 billion in 2014.

Google announced the plan last fall, but yesterday, YouTube content boss Robert Kyncl held a formal coming-out party for the plan, with a presentation for a packed house at the Consumer Electronics Show. And after that, I talked to him about why YouTube had changed course.

After all, plenty of people seem to like YouTube just the way it is. It attracts 800 million users a month, who watch a staggering three billion hours of clips a day. And while Google has never come out and disclosed the site’s finances, it frequently hints that it is a big business, and perhaps a profitable one.

And if YouTube really wants to get more premium stuff for the site, why not go out and buy the stuff that Hollywood and the TV guys are already making? Google could certainly afford it, and Big Media has gotten very comfortable about putting its stuff online, as long as it’s getting a big check for it. Kyncl knows that well, since he used to arrange those deals at Netflix, before joining Google in 2010.

You can see Kyncl’s answers here — apologies for the extra-shaky cam — and below that, you can see the full CES presentation. And in a couple weeks, you can hear from Kyncl’s boss, YouTube CEO Salar Kamangar, at our D: Dive Into Media conference. Registration details here.

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]]> http://allthingsd.com/20120113/channel-changer-one-on-one-with-youtube-content-boss-robert-kyncl-video/feed/ 0 http://allthingsd.com/20120112/what-kind-of-web-video-plans-does-sony-have-video/ http://allthingsd.com/20120112/what-kind-of-web-video-plans-does-sony-have-video/#comments Thu, 12 Jan 2012 13:30:43 +0000 Peter Kafka http://allthingsd.com/?p=163093 Sony has everything you’d need to launch an interesting video service: Its TVs, DVD players and game machines are already in millions of living rooms. It owns a big Hollywood studio. And while it has taken a beating over the past few years, it has plenty of cash to fund big bets.

So no surprise that Sony is yet another company reportedly exploring “over the top” Web video. And even if it doesn’t end up launching a full package of cable-like TV programming, it seems quite reasonable to assume it’s going to be doing something with video this year.

And that’s more or less what Sony executive Tim Schaaff said near the end of the brief chat I had with him yesterday at the Consumer Electronics Show.

Schaaff is the former Apple executive hired by Howard Stringer six years ago to knit all his media and electronics businesses together. If you don’t want to hear his thoughts about his new music subscription business, or what the cloud means for Sony versus Google, Amazon, Apple, etc., skip ahead to the four-minute mark on this video.

That’s where Schaaff refuses to say that Sony is looking to get into a Netflix-style subscription business. But he does say he would love to have me “paying for video on a regular basis.”

“We’re certainly talking to lots of different people about some new possibilities, and I hope that we can have some new announcements for you later in the year.”

The guy making a cameo appearance in the background, by the way, is Sony VP Michael Aragon, who oversees video and music for Schaaff.

]]> http://allthingsd.com/20120112/what-kind-of-web-video-plans-does-sony-have-video/feed/ 0 http://allthingsd.com/20120106/hollywood-showdown-blockbuster-redbox-balk-at-warners-new-window/ http://allthingsd.com/20120106/hollywood-showdown-blockbuster-redbox-balk-at-warners-new-window/#comments Sat, 07 Jan 2012 01:08:38 +0000 Peter Kafka http://allthingsd.com/?p=161202 Warner Bros. wants to keep its DVDs out of the hands of renters for an extra month. Blockbuster and Redbox don’t want to play along.

Which means we’re in for an interesting game of chicken between Time Warner’s movie studio and the two rental services. And the result will be meaningful for Netflix, too.

Here’s where things stand: Warner Bros wants to double the “window” that keeps new DVDs away from rental services from 28 days to 56 days, a strategy that’s supposed to encourage would-be renters to buy DVDs instead. Netflix intends on going along with the plan and will be able to buy discs directly from the studio at wholesale rates.

Warner plans on announcing the new terms next week at the Consumer Electronics Show. But though I reported yesterday that Dish Network’s Blockbuster and Coinstar’s Redbox had signed on, the two companies — directly and indirectly —  say that’s not the case. Earlier today a Coinstar rep told me the company won’t agree to a longer window, and a person familiar with Blockbuster’s thinking now says the same thing.

If neither side backs down, then Blockbuster and Redbox would have a marketing advantage over Netflix, since the companies could boast about getting new movies before their rival.

But that assumes they can get their hands on the movies. That will be costly, and perhaps quite difficult.

In the past, Redbox has bought movies directly from retailers (Netflix also used to do the same thing in the service’s early days. But chains like Wal-Mart and Target have instituted buying caps on their discs  that are supposed to thwart that strategy. (Thanks, Janko Roettgers.)

Grab your popcorn!

]]> http://allthingsd.com/20120106/hollywood-showdown-blockbuster-redbox-balk-at-warners-new-window/feed/ 0 http://allthingsd.com/20120106/at-ces-2012-3-d-is-riding-shotgun-to-smart-tvs/ http://allthingsd.com/20120106/at-ces-2012-3-d-is-riding-shotgun-to-smart-tvs/#comments Fri, 06 Jan 2012 18:48:29 +0000 Lauren Goode http://allthingsd.com/?p=160499 After years of flogging 3-D TVs at the annual Consumer Electronics Show, television makers are trying a different tactic.

For 2012, they are focusing on making TVs “smarter” by enabling them to connect to the Internet for apps and video services on the Web.

But that doesn’t mean 3-D is going away. It’s just riding shotgun with smart TVs.

Smart TV is not a new concept, of course. Up until now, it has been defined as Internet-connected television achieved through a separate box or device that connects to the TV and streams Internet content, or via a computer-like processor built directly into the TV.

On the showroom floor in Las Vegas next week, electronics makers including Samsung Electronics, Sony and LG Electronics are expected to show off more television sets that bring Internet connectivity to entertainment centers for the home. Yesterday, Google announced that LG will join the list of companies supporting Google TV; Samsung, Sony, and Vizio Inc. have also adopted Google’s Internet TV technology.

With Apple rumored to have a possible Internet-connected HDTV in the pipeline, TV makers are making all kinds of pushes to bring to market devices that offer consumers a full range of options. For many consumers, the answer for now will still be external devices that offer easy, upgradable solutions, like the Microsoft Xbox, Apple TV, Google TV and even Roku’s latest gadget.

Analysts believe that Internet-enabled TVs will begin to take a larger share of the market by default, eventually becoming a check-off item for consumers, rather than a special feature. Some 60 percent of new televisions being sold in 2012 are expected to have Internet connectivity. According to NPD’s DisplaySearch, connected-TV shipments are expected to reach 138 million globally by 2015, accounting for 47 percent of all flat-panel TVs.

So where does 3-D fit into all this?

TV makers will still be touting 3-D at CES 2012, as many smart TVs will also include 3-D capabilities. Samsung Electronics, for instance, says that more than half of its 2012 TV models will support 3-D. “Our commitment to 3-D is only deepening,” says Ethan Raisel, director of communications at Samsung.

Tim Alessi, Director of New Product Development at LG, estimates that around 20 percent of all LG TV units will support 3-D, and notes that 3-D is featured in 50 percent of the company’s lineup for this year.

But despite the fact that 3-D TV sales in 2011 showed some encouraging gains — with an estimated 21.5 million 3-D units reported to have shipped last year and sales showing significant gains from quarter to quarter — the forced exuberance over three-dimensional screens has been tempered a bit.

That’s likely because it doesn’t matter how well 3-D TV units are selling — for the consumer, anyway. “It’s not really the penetration that matters, it’s the use,” says Forrester Research analyst James McQuivey. “You’d be hard pressed to find a 3-D TV owner that actually uses it in 3-D mode even once a week. That’s not a formula for building consumer momentum.”

For TV, 3-D presents a three-headed monster: To start, there are the technical and psychological obstacles of those pesky 3-D glasses — and while autostereoscopic (glasses-free) 3-D technology is being worked on in many R&D labs, industry experts all agree that quality 3-D without glasses is at least a few years away.

Secondly, 3-D presents a chicken-and-egg dilemma that doesn’t exist with smart-TV features — the question of where the viewable content will come from. Many content creators have been holding off on making 3-D programs. The Discovery Channel and ESPN made headlines two years ago when they announced 3-D channels; but in terms of sports, 3-D has been relegated to key events, due to high production costs.

An increasing number of 3-D movies are available on DVD, but moviemakers that hopped aboard the 3-D train early — think Pixar Animation Studios and DreamWorks Animation — were likely doing so to plant a flag in the ground for when 3-D finally does hit critical mass in the living room, says Scott Steinberg, head of strategic consulting firm TechSavvy.

Sony Chairman and CEO Howard Stringer even said recently, regarding the company’s 3-D TV push, that he hadn’t realized all of the challenges in getting 3-D content in place.

And the third issue affecting the uptake of 3-D has been the cost of the sets. On average, the cost of 47-inch to 50-inch 3-D TV sets is $400 more than similar HDTVs, according to a 2011 report from Retrevo. And while the entire consumer electronics industry has been hurt by a weak U.S. economy, TV sales have been hit particularly hard.

Steinberg says that for the average American household, television purchasing is about being practical right now. “It’s much more important to have the maximum-value TV with Internet capabilities and apps, than to invest in a still-unproven technology like 3-D.”

A December 2011 report from Parks & Associates on consumer purchasing intent also indicates that smart TVs are what’s grabbing the interest of consumers right now.

Even that report points out that smart TVs won’t deliver the killer blow to 3-D. As smart TVs are punched up with even more features — from apps to motion remotes to voice-command capabilities — more middle-class households looking to purchase smart TVs may buy in to 3-D, whether they’re actively looking for it or not.

Whether consumers actually want to sit in their living rooms and wear 3-D glasses to watch TV remains to be seen. For now, TV makers will still insist that they do.

MORE CES NEWS:

• Complete coverage
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• Walt Shows Off CES Gadgets for Fox Business News (Video)
• What Kind of Web Video Plans Does Sony Have? (Video)
• Fujitsu Seeking Way Into Crowded U.S. Smartphone Market
• Why Rhapsody Is (Probably) Bigger Than Spotify — In the U.S.
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• FCC Chairman Has New Tablet, but Same Script: More Spectrum!
• Verizon Wireless: We Want to Connect Five Devices for Every Subscriber
• Ultrabooks From HP and Lenovo That Are (Kinda, Sorta) Different
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• Microsoft Pulling Out of CES After Upcoming Show
• Intel to Detail Its Phone Plans at CES Next Month
• Dell Will Drop the Flashy Vegas Act for CES This Year
• Ultrabook Conga Line Preps for CES 2012

]]> http://allthingsd.com/20120106/at-ces-2012-3-d-is-riding-shotgun-to-smart-tvs/feed/ 1 http://allthingsd.com/20120105/warner-brothers-will-make-netflix-redbox-blockbuster-wait-longer-for-new-movies/ http://allthingsd.com/20120105/warner-brothers-will-make-netflix-redbox-blockbuster-wait-longer-for-new-movies/#comments Thu, 05 Jan 2012 22:21:53 +0000 Peter Kafka http://allthingsd.com/?p=160652 Want to watch a new movie just out on DVD from Warner Brothers? You’re going to have to buy it, or wait even longer to get it from Netflix or other disc renters.

A new deal between Time Warner’s movie studio and Netflix, Redbox and Blockbuster will double the “window” for new releases. That means the services will now have to wait 56 days after the discs first go on sale to offer them to their customers, instead of 28 days. [UPDATE: Redbox parent Coinstar now says they haven't agreed to a new deal; see below]

The move is part of Hollywood’s ongoing campaign to bolster flagging DVD sales, and sources tell me the new deal is supposed to be announced at next week’s Consumer Electronics Show in Las Vegas. Warner Brothers executives have already talked publicly about extending the current window.

This is the second time that Warner has been able to get the rental services to wait before distributing its movies.

In 2010, it struck deals with Netflix, and later Coinstar’s Redbox, to wait 28 days before renting its new discs. Coinstar and Netflix later landed similar pacts with most of the other big studios. (Coinstar did up end up in legal battles with Universal Studios and 20th Century Fox, which like this Web site is owned by News Corp.)

Two years ago, Netflix was able to argue that by delaying access to DVDs, it was able to get its hands on more streaming content, and lower prices for the discs it did buy. This time around, though, Warner won’t be granting any additional digital rights to the studios. It will simply be offering them the ability to buy discs in bulk, at a significant discount to retail pricing, like they already do.

Earlier today, news broke that HBO, another Time Warner unit, would stop selling its DVDs to Netflix altogether, but sources tell me the two moves aren’t directly related. Next week’s planned announcement is supposed to be tied to Warner Brothers’ continuing push for Ultraviolet, an industry consortium that’s supposed to allow home video buyers to watch their purchases on multiple machines, in multiple formats.

Reps for Time Warner, Coinstar, Netflix and Blockbuster parent company Dish Network declined to comment.

UPDATE: Coinstar is now commenting, via email. “The current agreement Coinstar has with Warner Bros. is to receive movie titles 28 days after their release. No revised agreements are in place.” The company’s current deal with Warner Bros. expires at the end of January; PR chief Marci Maule referred me to comments CEO Paul Davis made last fall about pursuing “workarounds” if studios try to extend their windows.

]]> http://allthingsd.com/20120105/warner-brothers-will-make-netflix-redbox-blockbuster-wait-longer-for-new-movies/feed/ 0 http://allthingsd.com/20120104/netflix-reminds-us-that-its-a-streaming-video-company-again/ http://allthingsd.com/20120104/netflix-reminds-us-that-its-a-streaming-video-company-again/#comments Wed, 04 Jan 2012 15:30:37 +0000 Peter Kafka http://allthingsd.com/?p=159775 Sure, you can rent DVDs from Netflix if you want — and are willing to work a bit. But the company reminds you every chance it gets that it’s really a streaming video company.

Today’s underscore opportunity: A press release announcing that Netflix customers streamed “more than 2 billion hours” of video during the last three months of 2011. CEO Reed Hastings telegraphed this one in December, when he told an investor conference that the company was set to stream “well over” a billion hours for the quarter.

But beyond a boilerplate reference to “more than 20 million streaming members,” Netflix isn’t saying how many customers were watching that video. And it’s not providing any other meaningful metrics until it announces Q4 earnings in about a month. So no need to spend any more time on this one.

]]> http://allthingsd.com/20120104/netflix-reminds-us-that-its-a-streaming-video-company-again/feed/ 0 http://allthingsd.com/20111222/netflix-really-really-doesnt-want-your-dvd-money/ http://allthingsd.com/20111222/netflix-really-really-doesnt-want-your-dvd-money/#comments Thu, 22 Dec 2011 20:25:21 +0000 Peter Kafka http://allthingsd.com/?p=156352

Streaming is the future. We’re focused on it. DVD will do whatever it’s going to do. We’re not — we’re going to try to not hurt it, but we’re not putting a lot of time and energy into doing anything particular around it and then we’re focused on, how do we take advantage of this incredible global streaming opportunity.

That was Netflix CEO Reed Hastings, at the UBS media conference earlier this month, reiterating the point that Netflix has been making over and over again for some time: They want out of the DVD business, even though it is generating more than $1 billion a year for them.

Hastings and his team are convinced that even though consumers say that discs are important to them, their usage data shows that few people … use them. “Old fogey discs,” Hastings calls them.

Netflix tried very hard to accelerate the decline of DVDs with the Qwikster fiasco. Since then, Netflix has been careful to tell its subscribers who are still paying for DVDs that it is happy to have them around.

New subscribers are a different story, though. Netflix exclusively pushes its $8-a-month unlimited-streaming option, on its site and in its promotional materials. You have to work very hard to discover that the company still rents DVDs, and that’s by design.

Same deal for former subscribers that Netflix is trying to woo back: Even if you used to get both DVDs and streaming videos from Netflix, the company will only tell you about its streaming plan in its “come back!” emails. (See the screenshot of an email my colleague Tricia Duryee, who quit her hybrid plan this fall, got recently, at the bottom of this post.)

But the message is most clear for people who want to give someone a Netflix subscription as a present: The company no longer allows you to gift a subscription that includes a DVD plan, period.

Go ahead and see for yourself — there’s no way to give Reed Hastings and company an extra $8 a month for a service they’re still providing to some 11 million subscribers.

The one tiny workaround that the company offers (if you look very, very hard — or do what I did, and call up Netflix PR and ask) is the ability to let current subscribers extend their current deal. So, for instance, if you’re currently getting the equivalent of a $16-a-month hybrid disc-and-streaming option, and someone gives you a year-long $8-a-month streaming gift, you can convert that into a six-month hybrid plan.

But, boy, that’s complicated. Easier to just give someone a year of streaming, and then send them a check so they can add the DVD portion on their own. Which is what we just did this morning, here at the AllThingsD Brooklyn outpost.

So to repeat: If you work very, very hard, Netflix will let you give it money, and will let you rent DVDs in return. But it would really prefer that you didn’t.

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