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.

So Twitter.com’s new overhaul may indeed make it easier and faster for users, as Liz Gannes reported this afternoon. But it’s also much more inviting to advertisers — the logical next step as the company tries to make Twitter more of a “consumption environment.”

There are two different things going on here: Twitter is making its basic site more attractive and engaging by making it easier to view things like embedded videos. And it has created “brand pages” for advertisers, where they can have a lot more control over what users see.

Both of these are very simple ideas, but they’re essential if the company is going to convince marketers that Twitter is more than a novelty.

A sticky site has an obvious upside for advertisers, because it gives them a better chance to get their messages — sold, right now, via “Promoted Tweets” — in front of more eyeballs. And the brand pages solve a basic problem that Twitter advertisers have had so far: They haven’t had a home page to deliver messages that might take longer than 140 characters.

Twitter isn’t charging for the brand pages, and it says they will open them up to everyone eventually. But it’s not a coincidence that it’s launching with big-budgeted marketers like American Express, Pepsi, Disney and Dell.

This is the kind of value-add product that sales boss Adam Bain and his team want to offer to big spenders, at the same time they’re rolling out a Google-like self-serve platform for small buyers.

You can see quite clearly how this will work for the big guys, once they figure out the best way to use it. Click on over to the new brand page for “Ghost Protocol,” the newest Mission: Impossible movie from Paramount, to see a good example. And if you can’t see, or just want to watch a video, I can help you out, too — here’s the key element of the new page:

[Shutterstock: Andrey Eremin]

So is this a good time to be in media? Or a terrifying one? Both? Yes!

AllThingsD covers the media business and the way it responds to technology, every day. But in January we’re going to go really deep into this stuff, at our first D: Dive Into Media event, where we’ll focus on the people who create, finance and distribute what we listen to, read and watch. (Facebook is on to something!)

We’ll gather the most powerful, interesting and innovative leaders from a wide range of media and entertainment companies, and sit down with them for one-on-one interviews.

And just like our flagship D: All Things Digital event, we’ll also be able to give you peeks at the future, by focusing on new voices and new technology you’ll be hearing from in the months and years to come. You won’t see panel discussions with middling players here: Just deep, smart talks with the people who matter.

We’ll be announcing our speakers throughout the fall, but here’s a starter list to give you a sense of what we’ve got planned:

Philippe Dauman is CEO of Viacom, which runs one of the world’s dominant cable networks. We’ll talk to him about what that means in a universe where cord-cutting could become a reality — if it’s not already. We’ll also pick his brain about the future of his Paramount studio, and Hollywood in general.

New Yorker editor David Remnick runs one of the world’s best, most storied magazines. Coincidentally or not, it also happens to be a rarity in the iPad world — a successful magazine app. We’ll talk to the Pulitzer Prize winner about the challenge of making long, immersive content in a fast-twitch world.

Edgar Bronfman Jr. ran Warner Music Group from 2004 until earlier this summer; he’s now the company’s chairman at a pivotal time in its history. Since his resume also includes a stint running what’s now called NBCUniversal, he’ll also be able to give us an interesting perspective on the evolution of the TV and movie business.

News Corp. COO Chase Carey can talk to us about his company’s take on the movie business, the TV business, the cable business, the newspaper business and the Internet. News Corp. also owns this Web site, but that won’t prevent us from having a frank discussion about the company’s challenges and opportunities.

D: Dive Into Media will be held at the stunning Ritz-Carlton in Laguna Niguel, a little more than an hour south of Los Angeles. On behalf of Walt Mossberg, Kara Swisher and the rest of the AllThingsD staff, I’d like to invite you to join us Jan. 30 and 31.

The studio’s big summer movie is out Friday, but you can see it tomorrow by heading to this site, which you can get to via the “#Super8Secret” hashtag, which Viacom’s movie unit has purchased as today’s “Promoted Trend” on Twitter.

Pretty straightforward stuff, but worth noting because:

• It’s another example of Hollywood embracing Twitter. Many studios have started using the service to promote an opening weekend. That’s a very nice sector of the ad business to play in, and it generates a lot of money for the TV networks on Thursday nights; it’s also lucrative for the very biggest Web portals. Getting a piece of it is a promising sign for Twitter.
• It’s also part of a year-long marketing pact that Paramount has signed with Twitter, one of several the service has signed with advertisers. One of the big raps about Twitter’s early ad efforts are that it doesn’t have enough inventory/opportunities to command big ad buys, but signing on buyers for a year takes care of some of those problems, for now.

By the way, I got to see the movie at a preview screening last night, attended by reporters and PR people. It’s good!

As I wrote in April, YouTube is adding movies from big studios including Time Warner’s Warner Bros., Sony and Comcast’s Universal to existing service, which has previously had a limited selection of titles from small studios.

For now, the YouTube movie store appears to be a work in progress: Google says it will rent newish movies like Inception, The King’s Speech, Little Fockers from the store, but so far I can’t find any of them. Same goes for new old titles like Caddyshack, which are also MIA.

Once YouTube gets this thing ready for prime time, though, it’s going to look very similar to what consumers can already get from competitors like Apple and Amazon: The ability to rent a movie that they can watch anytime over a 30-day period, except that once they start watching it they’ll have 24 hours before it evaporates. Pricing should be comparable to YouTube’s peers — $3.99 for new movies $2.99 for older ones.

Beyond that, the only wrinkles of note here:

• As I reported last month, the movies will be streamed, not downloaded. So presumably you’ll need a live Web connection to watch them, unlike Apple’s videos, which reside on your device for the duration of the rental.
• It’s unclear whether consumers will have to sign up for Google Checkout or some other Google-specific e-commerce platform to rent the movies; a FAQ sent out by Google only mentions that “the service accepts all major credit cards.”. Not linking the service to a Google account may make things slightly easier for consumers, since it’s an extra step they won’t have to take. On the other hand, you’d think Google would be very interested in establishing a credit card relationship with their customers, like Amazon, Apple and Netflix do.

By all accounts, this is an intermediate, incremental step for Google, which has had movie rentals for a year but hasn’t had much to show for it. Now it has the backing of some big studios, but is missing others, including News Corp.’s Fox (News Corp. also owns this Web site), Viacom’s Paramount and Disney.

Even if YouTube does bring on more partners — Paramount seems like a particularly long shot, given the ongoing Viacom/YouTube lawsuit, but the rest could show up one day — that will just bring Google up to par with other online a la carte movie rental outlets, which haven’t gained much traction yet.

Nothing wrong with that, but that doesn’t seem to be the end game for either Google or the studios. Google seems interested in building up YouTube, period. And if making video rentals available as part of the huge swell of content that lives on the site helps, then great.

The movies will also work on Google TV, which can use any help it can get. So that’s good, too.

At least part of Hollywood, meanwhile, seems to believe it can keep its DVD business alive by launching a locker/cloud system that would give disc owners the right to watch their movies whenever they want, on different devices . They’re also gung ho about anything that isn’t a Netflix all-you-can-eat subscription plans.

I’m doubtful that can work. Because beyond kids’ movies, which get watched hundreds and hundreds and hundreds of times (I know the name of every character in Cars – try me!) most consumers don’t want to watch a movie multiple times. It’s not like a music collection, which does make quite a bit of sense in the cloud.

But the studios seem to like this idea, and at least some of them are convinced Google can help them do it — or, at least, provide leverage with other potential cloud partners, like Apple or Facebook. Watch for more developments in this vein.

And while you’re waiting, you can try renting a movie from YouTube.

Here’s a pitch that combines both models in one service: Cloud media startup mSpot is offering a “Movies Club,” which lets members rent multiple–but not unlimited–movies per month, at a discount from what they’d cost a la carte.

MSpots’s movies, which are already available as one-off rentals, work on a variety of platforms, including Apple iOS devices and Google’s Android.

Which sounds interesting, but mSpot is going to have a difficult time explaining it to their customers. There are multiple subscription tiers, starting at $4.99 a month, but it’s impossible for a subscriber to know in advance how many movies that entitles them to, since that will vary depending on the titles they rent.

And the savings over conventional rentals are never going to be mammoth. Apple’s iTunes, for instance, rents “The Social Network” for $3.99, and mSpot club members can get it for $3.00. That’s nice, but it may not be enough for someone to make a monthly commitment.

Meanwhile, Hollywood itself hasn’t completely embraced the idea. MSpot has a catalog of about 1,200 movies for its conventional rental service, from most of the big studios with the exception of News Corp.’s Fox (News Corp. also owns this Web site).

But only half of those titles are available for club discounts. Disney and Viacom’s Paramount are the only big studios signed on so far.

Text messaging applications, which offer the ability to send messages to a group of people via a single phone number, were in the spotlight at SXSW. Companies such as Gogii, KIK, Beluga, GroupMe and Fast Society were the talk of the town since they provided easy ways for large groups of people to socialize and get in touch quickly.

Following the event, GroupMe provided its first hint at what its business model would be when it opened up its mobile group chat to brands, which would be highlighted in a “Featured Groups” section.

Now, Gogii is beefing up its monetizing efforts.

Hill, who will have the title of VP of monetization and publishing, was most recently VP of mobile monetization at Myspace.

She will oversee all company revenue, which includes in-app purchases, advertising and a new publishing unit, said Gogii CEO Scott Lahman. “I can’t think of anyone better who can hit the ground running. She’s been doing this for years at Fox and at Myspace. This is almost the exact same role.”

Gogii’s textPlus application has 7.7 million monthly active users and recently set a record for sending 35 million messages in one day.

While Hill is just joining the Los Angeles-based startup, the company has been monetizing with advertising from the beginning.  ”We hit seven-figure revenue-quarters last year, and that’s continued to grow. We are well past the testing stage. Advertising campaigns were up 300 percent in the first quarter compared to the same period last year.”

Mostly, the app relies on splash ads–which are like a homepage takeover–which the user sees immediately after opening the application. Lahman said users on average open the application 10 to 15 times a day, and that the ads have a click-through rate in the high single digits. There are also banner ads from within the applications, which are seen by its nearly eight million monthly active users.

Lahman said they made the decision to monetize with advertising because it allowed them to grow the business much faster than if they charged for it. A paid version of the application, which has no advertising, allows the user to pick the area code for the phone number they use. He said six to 10 percent of its users choose to upgrade. The app costs $4.99 and is available on iPhone and Android.

“The advertisers love it. We are the text client for a lot of our customers–that’s why they use it so much to send so many messages.”

Gogii uses a mix of its own direct sales force in addition to farming out some inventory to mobile ad networks, like Google’s AdMob, Jumptap and Greystripe. Returning advertisers include Disney, Fox, Target, Ford, Paramount, CBS, Unilever, JCPenney, MTV, Coca-Cola and Zynga.

The new publishing business, which Hill will oversee, will experiment with a sort of white-label service, which will allow a brand to completely take over the application for a specific brand or event.

Lahman said in March, 25 percent of the company’s revenues were coming from paid features inside the application. It’s his goal to hit 50 percent by the end of the year. “That will come against a growing advertising business–that’s not cannibalizing it,” he said.

The week-long campaign will appear in Zynga’s popular FrontierVille, and is part of the company’s efforts to build up additional sources of revenue beyond relying on the few users who elect to pay for virtual goods.

“Rango,” which debuts in theaters on Friday, is about a chameleon who must save the day in a Western-themed town, much like the atmosphere depicted in FrontierVille.

The placement is being conducted through a partnership between the San Francisco-based social games developer Paramount Pictures and Nickelodeon Movies.

Starting this afternoon, the 15 million daily players of FrontierVille will be presented with three Rango-related tasks, if they choose to participate.

Players must find the chameleon, who easily blends into the frontier. Then, they must get their friends to send them 10 buckets of water, and finally they must watch the film’s trailer in advance of the film’s release. If players do all three, they receive a Rango statue to add to their homestead.

The product placement is more overt than some of the ones in the past. It also doesn’t offer much value. For instance, the statue has no secret powers, and will not bring crops back to life, like the Farmers Insurance blimp did last year in FarmVille.

In an interview, Manny Anekal, global director of brand advertising at Zynga, told us that’s not the appeal of the statue. “They are collection-ists and completion-ists, but they also like getting things that are unique, and you can’t buy it,” he said.

For Paramount, he said they’ll be watching the number of people who participate and how much awareness of the brand it creates.

Some critics question whether Zynga’s strategy of doing one-off product placements will be able to scale and be come a large enough business since each offer is so specialized, and the company must work so closely with the advertiser to come up with an appropriate ad campaign.

Anekal said it’s a work in progress. They’ve only had a dozen or so product placements since the second half of last year. “In terms of what we can scale. We are working towards that. We are nascent in the space.”

Zynga has worked to promote two other movies: Sony Pictures Entertainment’s The Green Hornet in Mafia Wars and DreamWorks Animations’ Megamind in FarmVille. The DreamWorks promotion attracted more than nine million people to interact with Megamind’s “Mega-Farm” in the 24-hour period.

Today, by far and away, most of Zynga’s revenues are generated from game players who elect to pay for items within games, ranging from new clothes for their avatar to seeds for their FarmVille farm.

But that’s likely to change this year as the San Francisco-based social gaming company ramps up conversations with advertising agencies and slips more campaigns into its game titles, including its latest hit, CityVille, which has attracted an audience of more than 100 million people in a little over a month.

So far, Zynga has executed a number of successful campaigns on behalf of big brands, like American Express, Nestle, McDonald’s, Farmers Insurance and Coke, among others.

In an interview, Manny Anekal, who was hired about a year ago to head up Zynga’s brand advertising, explained that because it’s the early days of advertising within social games, companies have to be a lot more creative, because they don’t have banner ads or room for commercials.

Recent campaigns include giving out free virtual goods, such as Cokes in Cafe World; Green Hornet-branded loot in Mafia Wars; and a Farmer’s Insurance airship in FarmVille.

The brands typically create incentives to make the integrations more valuable (and presumably less annoying). For instance, the insurance blimp kept a farmer’s crops from withering, and if you collected all of the Green Hornet loot within Mafia Wars, you received a Black Beauty car, as seen in the movie.

Anekal said there’s a learning curve with social media buys, because a successful campaign can’t be measured in click-through rates. Instead, he says, it’s measured by engagement, which is the amount of time people interacted with the brand, and the amount of social activity, or the number of times users sent friends within a game a message about the brand, or posted it to their wall.

Next up may include integrating advertising campaigns in games played on mobile devices, where monetization has been more difficult than on Facebook.

For example, you could earn additional energy in Mafia Wars for checking in to a particular store or location, or scan a product for a free virtual good. “We are looking at options to add to game play, and having those conversations right now,” he said.

What Zynga won’t likely do is create a name-brand game, like “Starbucks World” (instead of Cafe World). So far, the idea of branded games has been relatively controversial. Game developers don’t want to have to pay for the required licensing, and so far they’ve been able to get by without it since most games have generic titles.

For Zynga, it’s building a brand of its own, and it wouldn’t want to share the spotlight with others. “Half of the requests I get from agencies is for branded games,” Anekal said. “We may be moving forward, but it’s not in our plans….We want to focus on the Zynga brand.”

In the video below, Anekal discusses Zynga’s in-game advertising aspirations and how Megamind’s campaign on FarmVille was able to prompt 10 million people within FarmVille to interact with the brand in one day.

]]> http://allthingsd.com/20110121/more-blimps-and-sponsored-loot-coming-as-zynga-ramps-in-game-advertising-in-2011/feed/ 0 http://allthingsd.com/20101206/dive-into-mobile-nightcap-photo/ http://allthingsd.com/20101206/dive-into-mobile-nightcap-photo/#comments Tue, 07 Dec 2010 06:48:31 +0000 Voices http://voices.allthingsd.com/?p=33645 Tonight we kicked off D: Dive Into Mobile with an in-depth interview with Andy Rubin, Google’s head of Android. The discussion went a little long, but that didn’t keep the attendees and All Things D staff from partying the night away.

Walt, Kara and the D staff gobbled up mountains of tiny cupcakes and sipped a drink or two.

We even caught a few photos of the fun.

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]]> http://allthingsd.com/20101206/dive-into-mobile-nightcap-photo/feed/ 0 http://allthingsd.com/20101201/netflix-shatters-pay-tv-window-with-filmdistrict-deal/ http://allthingsd.com/20101201/netflix-shatters-pay-tv-window-with-filmdistrict-deal/#comments Wed, 01 Dec 2010 15:48:02 +0000 John Paczkowski http://digitaldaily.allthingsd.com/?p=53403 Intent on remaking the cable landscape, Netflix this morning inked another distribution deal, this one with FilmDistrict. Under its terms, first-run films that typically would have been licensed to cable channels for broadcast during the so-called “pay TV window” will now instead go to Netflix for streaming.

The deal is the latest in a string of pacts that are fast transforming Netflix into a true Web-based movie channel. With streaming rights to films from Paramount, Lionsgate, Sony, Disney and MGM studios, and a new streaming-only service priced at $7.99 a month, the company is increasingly becoming more competitive with the cable incumbents.

]]> http://allthingsd.com/20101201/netflix-shatters-pay-tv-window-with-filmdistrict-deal/feed/ 0 http://allthingsd.com/20100917/samsung-is-latest-to-push-mobile-media-and-apps-for-tvs/ http://allthingsd.com/20100917/samsung-is-latest-to-push-mobile-media-and-apps-for-tvs/#comments Fri, 17 Sep 2010 07:00:47 +0000 Lauren Goode http://voices.allthingsd.com/?p=29860 As Samsung Electronics promotes its version of Apple’s iPad Thursday, the company is also revealing its answer to the iTunes store — or at least the video portion of it.

As part of the U.S. unveiling of the Galaxy Tab, a mobile device with a 7-inch screen, Samsung is showing off a new media and entertainment platform for mobile.

The move is yet another step by a technology company to keep up in the mobile-device arms race, which involves not only phones and tablets but also the media and applications that run on them.

The entertainment portal, named Media Hub, will allow users to rent or purchase content using the Galaxy Tab or Galaxy S smartphones. It will initially include TV series like “The Office” and “The Event,” as well as some Hollywood movies. A spokesman for the company said Samsung has partnerships with NBC, Universal Home Entertainment, MTV and Paramount, but wouldn’t specify the exact nature of the partnerships or offer details on pricing. The company later said it also had an agreement with Warner Bros. as well.

Read the rest of this post on the original site

]]> http://allthingsd.com/20100917/samsung-is-latest-to-push-mobile-media-and-apps-for-tvs/feed/ 0 http://allthingsd.com/20100216/warner-and-redbox-settle-up-consumers-will-wait-to-watch/ http://allthingsd.com/20100216/warner-and-redbox-settle-up-consumers-will-wait-to-watch/#comments Tue, 16 Feb 2010 21:19:29 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=16352 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.

]]> http://allthingsd.com/20100216/warner-and-redbox-settle-up-consumers-will-wait-to-watch/feed/ 0 http://allthingsd.com/20100211/rock-band-falls-flat-for-viacom-but-profits-soar/ http://allthingsd.com/20100211/rock-band-falls-flat-for-viacom-but-profits-soar/#comments Thu, 11 Feb 2010 12:39:45 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=16204 Here’s the problem for Viacom, the media conglomerate that brings you both the Rock Band videogame and the “Jersey Shore” reality show: It brings you both the Rock Band videogame and the “Jersey Shore” reality show.

The latter is a hit for Viacom’s MTV, but sales of the once hot videogame have cooled off, which helped push fourth-quarter revenue down three percent, to $4.1 billion. Wall Street was looking for revenue of $4.23 billion.

The good news: Viacom is much more profitable than it was a year ago, due to hits from its Paramount movie studio, higher license fees from its cable subscribers and some serious cost-cutting: After factoring out one-time charges, the company posted earnings of $1.09 per share, much higher than the 87 cents investors were looking for.

This follows cautiously upbeat performances from other big media companies, including News Corp. (NWS) and Disney (DIS).

Worldwide ad revenue was down three percent, and domestic ads were down four percent. But like other cable networks, the fees Viacom extracts from cable providers kept rising, pushing up 11 percent worldwide.

]]> http://allthingsd.com/20100211/rock-band-falls-flat-for-viacom-but-profits-soar/feed/ 0 http://allthingsd.com/20091001/fox-slaps-back-legally-at-redbox/ http://allthingsd.com/20091001/fox-slaps-back-legally-at-redbox/#comments Thu, 01 Oct 2009 23:03:13 +0000 Kara Swisher http://kara.allthingsd.com/?p=19038

In the ongoing fight between Redbox–which rents DVDs from kiosks for $1–and major Hollywood studios, 20th Century Fox Home Entertainment just filed a brief to dismiss Redbox’s lawsuit against it.

Said Fox in a statement:

“Redbox’s legal claims are fatally flawed. Fox’s filing today makes clear that, in the end, the case is all about Redbox’s refusal to make a business deal on general terms similar to those paid by others in this industry. Instead, Redbox has insisted that Fox sell DVDs to them through distributors, on the date they demand, at the price they want to pay. Unable to get the terms it wanted at the bargaining table, Redbox instead decided to file this meritless lawsuit.”

In a statement, Redbox president Mitch Lowe responded to the filing by stating that Fox was anti-consumer.

“Twentieth Century Fox continues its pursuit to prohibit consumer access to new release DVDs at affordable prices…Redbox remains steadfast in our commitment to protecting consumers’ rights and to providing our customers the DVDs they want, where they want and at the low price they want.”

In two briefs filed this afternoon, refuting Redbox’s allegations, Fox is asserting that it has not refused to provide DVDs to the outfit and has tried to negotiate a deal.

Under contention between the two are the price and terms of when DVDs of hit movies can be released to Redbox.

Redbox has asserted that Fox is violating antitrust laws and copyright misuse in not selling DVDs to the company.

Fox denied that claim in the brief, noting that Redbox simply did not want to pay up in order to get certain DVDs on the “street date,” as do other retailers.

Fox is one of three studios that have become embroiled in lawsuits with Redbox.

Located in Oakbrook Terrace, Ill., and is wholly owned by Bellevue, Wash.-based Coinstar (CSTR), Redbox is seeing strong rental growth due to its $1-a-night price for first-run movies, which the company distributes via its 15,000 freestanding machines in supermarkets and convenience stores, as well as in big chains like McDonald’s (MCD), Wal-Mart (WMT) and Walgreens (WAG).

Its fascinating legal battle with the studios centers around the issues of steep discounting, release windowing and the price for premium content.

Redbox recently sued Warner Home Video, owned by Time Warner (TWX), for denying it the opportunity to buy DVDs without being required to wait a month or more to rent them out.

It has previously gone after NBC Universal’s Universal Studios Home Entertainment, owned by GE (GE) and Fox, a unit of News Corp. (NWS), for similar release restrictions.

The trio’s movies make up 40 percent of the DVD rental market.

In its brief today, Fox noted that it was willing to sell to Redbox directly, rather than via wholesalers, but that talks collapsed over pricing issues.

And while some studios are holding fast to fighting price declines represented by consumer-friendly, idiot-proof tech solutions like Redbox, others are not.

Redbox has inked deals with Sony (SNE); Lions Gate (LGF); Paramount, a unit of Viacom (VIA); and also gets movies from Walt Disney (DIS).

Here are two briefs filed by Fox in U.S. District Court in Delaware, the first, a motion to dismiss the lawsuit by Redbox, and the second to transfer venue to California:

FINAL Opening Brief in Support of Fox’s Motion to Dismiss

Redacted Transfer Venue Brief

(Full disclosure: Fox is owned by News Corp., which also owns Dow Jones, owner of this site.)

]]> http://allthingsd.com/20091001/fox-slaps-back-legally-at-redbox/feed/ 1 http://allthingsd.com/20090930/hollywoods-guide-to-stealing-movies-on-the-web/ http://allthingsd.com/20090930/hollywoods-guide-to-stealing-movies-on-the-web/#comments Wed, 30 Sep 2009 19:05:28 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=11583 This one circulated around the Web earlier this month, but I didn’t see it until Pali Capital analyst Rich Greenfield included it in a note yesterday: A 10-minute presentation delivered by Paramount COO Frederick D. Huntsberry that gives a thorough, if rudimentary, tutorial on how to steal the movies his company makes.

As the intro to the video notes, Huntsberry was delivering his chat at a Federal Communications Commission hearing earlier this month. And as best I can tell, he was trying to alarm the FCC by pointing out just how easy it is to grab this stuff.

Along the way, he notes how many “legitimate” companies participate, in their own way, in the piracy value chain. Everyone from small storage start-up Drop.io, which allows users to host big data files for little or no charge, to Google (GOOG) and Yahoo (YHOO), which can point people toward pirate havens, gets tarred by Huntsberry’s brush.

Not surprisingly, the video inspired all manner of invective from my fellow bloggers, who railed about Huntsberry’s lack of sophistication, his temerity for asking the FCC for help in stopping piracy, and other offenses real and imagined.

I find it hard to get worked up about it, though, since I hear this stuff from media executives all the time. The big difference is that the ones who are most impassioned about it usually don’t want the FCC to stop piracy. They want the industry to offer compelling alternatives to piracy.

For instance, here’s a site someone who works for a very big media company points me to with some regularity. Said executive says it’s the latest and greatest in piracy. I wouldn’t know, because the download scares me off (and in case my employer is wondering, I don’t condone piracy, but I do write about it). So I’ll take said executive’s word for it.

In any case, the idea is not to tip me off about a great place to hoover up a camcorded version of “Pandorum,” but to point out how fast this stuff evolves and how difficult it is stop. I don’t see any harm in noting that, right?

]]> http://allthingsd.com/20090930/hollywoods-guide-to-stealing-movies-on-the-web/feed/ 0 http://allthingsd.com/20090831/louie-swisher-hearts-redbox-but-hollywood-not-so-much/ http://allthingsd.com/20090831/louie-swisher-hearts-redbox-but-hollywood-not-so-much/#comments Mon, 31 Aug 2009 22:10:02 +0000 Kara Swisher http://kara.allthingsd.com/?p=17783

If you want to get Hollywood movie studio types irked, mention Google (GOOG). And if you want them steamed, bringing up Netflix (NFLX) will usually work.

But if you want to see the tops of their heads blow off, Redbox is just the ticket.

Except not to their movies, it seems, if the major movie studio execs have their way in an ever-growing legal battle with the DVD-rental kiosk company.

Three of them have become embroiled in lawsuits with Redbox, even as the DVD market contracts.

Well, not for Redbox–which is located in Oakbrook Terrace, Ill., and is wholly owned by Bellevue, Wash.-based Coinstar (CSTR).

It is seeing strong rental growth due to its $1-a-night price for first-run movies, which the company distributes via its 15,000 freestanding machines in supermarkets and convenience stores, as well as in big chains like McDonald’s (MCD), Wal-Mart (WMT) and Walgreens (WAG).

Redbox is arguing that once it buys DVDs from the studios through wholesalers, it can charge any price it wants.

Studios beg to differ, claiming that bargain-basement pricing is hurting the market and that Redbox should not get the goods until after the first month of release of movies into the DVD market.

“These guys are simply grossly undervaluing our content,” said one studio source, in what is a typical sentiment. “We get the windowing model is changing, but we can’t just give these guys our stuff at a low, low price to essentially enable them to give it away…and that’s exactly what they wanted us to do.”

Thus, it’s a perfect set-up for legal high jinks about the issues of steep discounting, windowing and the price for premium content.

Redbox recently sued Warner Home Video, owned by Time Warner (TWX), for denying it the opportunity to buy DVDs without being required to wait a month or more to rent them out.

It has previously gone after NBC Universal’s Universal Studios Home Entertainment, owned by GE (GE) and 20th Century Fox, a unit of News Corp. (NWS), for similar release restrictions.

And while some studios are holding fast to fighting price declines represented by consumer-friendly, idiot-proof tech solutions like Redbox, others are not.

Redbox has inked deals with Sony (SNE), Lions Gate (LGF), Paramount, a unit of Viacom (VIA), and also gets movies from Disney (DIS).

It’s a fascinating case to watch–yet another wrinkle in the what-is-content-really-worth question that has been plaguing all traditional media.

Unfortunately for those companies, the kids seem to love it, as you will see from this video I did while renting movies at our local Safeway (SWY) with my seven-year-old son, Louie, at a small competitor to Redbox with about 1,400 outlets called DVDPlay.

We use both, but Louie–like a lot of consumers–is most definitely a fan of the Redbox method.

Here’s the video:

[Full disclosure: News Corp. owns Dow Jones, which owns this site.]

]]> http://allthingsd.com/20090831/louie-swisher-hearts-redbox-but-hollywood-not-so-much/feed/ 4 http://allthingsd.com/20081204/viacom-lays-off-850-takes-450-million-charge/ http://allthingsd.com/20081204/viacom-lays-off-850-takes-450-million-charge/#comments Thu, 04 Dec 2008 13:47:59 +0000 Peter Kafka http://mediamemo.allthingsd.com/?p=1663 Viacom’s long-rumored cuts are here. The media conglomerate is firing 850 people–seven percent of its workforce–and will take a charge of up to $450 million. Viacom (VIA) says the cuts will save it up to $250 million next year.

Company officials say the cuts will be spread throughout the company–at all of the cable network properties, including MTV, BET, etc., as well as its Paramount movie studio–and will include international units. Anyone laid off will be paid through the end of the month, and severance will kick in after that.

Here’s the official release, followed by an internal email from CEO Philippe Dauman and CFO Tom Dooley, and a separate email from Judy McGrath, CEO of MTV Networks.

NEW YORK, December 4, 2008 — Viacom Inc. (NYSE: VIA and VIA.B) today announced restructuring plans designed to better align its organization and overall cost structure with evolving economic conditions. These changes include broad-based staffing reductions, which will be implemented across all divisions of the Company. This process will result in the reduction of Viacom’s workforce by approximately 7 percent, or 850 positions. The Company is also suspending senior level management salary increases for 2009. In addition, reflecting a comprehensive review of its operations, the Company will write down certain programming and other assets.

The restructuring and write-down together will result in a pre-tax charge of $400 million to $450 million, or $0.42 to $0.48 per diluted share, in the fourth quarter of 2008. These staffing and compensation actions and write-downs are expected to result in pre-tax savings of $200 million to $250 million in 2009.

Viacom President and CEO Philippe Dauman said, “We are moving rapidly to adapt to the challenges presented by the current economic environment. The changes we are making in our organization and processes will better position Viacom to navigate the economic slowdown and generate sizable efficiencies that will help us to drive our business as the marketplace stabilizes and conditions improve.

“Viacom’s outstanding brands, diverse revenue streams and global footprint all provide a significant and enduring foundation for future growth. The steps we have taken over the last two years, including those we are announcing today, have put us on very sound financial footing with a strong balance sheet and substantial cash flow. This affords us the flexibility to successfully deal with challenges while also capitalizing on the opportunities that inevitably arise in uncertain times.  We are committed to continuing this prudent course and aggressively managing our businesses for long-term growth.”

—–

Memo from Philippe Dauman and Tom Dooley:

Dear Colleagues:

With less than a month until the close of 2008, our entire organization continues to do everything possible to anticipate and adapt to the unprecedented changes affecting all our businesses. We know it hasn’t been easy and we couldn’t be more proud or more appreciative of how you have risen to the challenge.

Even in these tough economic times, Viacom has a strong hand to play. We have a broad stable of outstanding brands, diverse revenue streams and an impressive global footprint, backed up by exceptional financial strength. Added to that we have talented employees, extremely able leaders and a creative ingenuity that runs deep.

Unfortunately, our advantages and best efforts can’t completely protect Viacom from the very serious and broad-based challenges of this economic recession. Viacom’s long-term health will depend on our shared commitment to adapt, to innovate and to make difficult choices. To compete and thrive, we need to create an organization and a cost structure that are in step with the evolving economic environment.

Today, we are announcing a company-wide restructuring plan that includes staffing reductions in all divisions. This will result in a reduction of our worldwide workforce of approximately 7 percent, or about 850 positions. We are also suspending salary increases for the Company’s senior level management in 2009. In addition, after a comprehensive review of our operations, we will write down certain programming and other assets. These three actions will bring us significant cost savings and other efficiencies.

Top managers at every part of the company worked thoughtfully, carefully and compassionately to create a leaner, more focused organization. It was not an easy task, but it was an essential step that will keep Viacom at the competitive forefront today and tomorrow. Department heads and supervisors will provide you with more information about the changes that will be taking place in your division.

Saying goodbye to friends and colleagues is always difficult, particularly when we have shared so much. Those of you who will be leaving should be proud of your contributions, which we will always respect and appreciate. We thank you and we wish you the best.

The true measure of an organization is how it deals with change and overcomes challenges. We know that you are up to the task and that together we will push through the difficulties ahead and go on to even greater achievements.

We truly appreciate your continued commitment and hard work and we thank you for everything you do each day.

Sincerely,

Philippe and Tom

—–

Memo from Judy McGrath:

I’m sure you’ve read Philippe and Tom’s note, and I want to talk to you about what it means for MTV Networks–today and in the context of our overall mission and strategy going forward.

We all know there’s a fundamental restructuring of our entire economy going on, and it extends beyond our borders. This is not just about MTVN, Viacom or even sister media companies–it’s happening in every industry, all over the world. This doesn’t make it easier to say goodbye to people we love and respect, but it is the hard truth. In these tough times, we are responsible for sustaining and reinventing our company as thoughtfully as we can. The changes we’re making today are necessary, difficult, and the responsible way for us to move forward.

Here in the U.S., we’re consolidating some groups, centralizing functions and outsourcing others, and aligning our resources across brands and platforms. Specific details of the changes and how they affect you and your group will be communicated by your department heads today. Our International organization continues to implement a new approach to structure and operations, which has been underway throughout the year. Further moves will be outlined by the leadership of each MTVNI region.

Change like this is so tough, to say the least. But we must accept that we operate today in a state of constant evolution, constant change.

We believe the next chapter for each of us will be all about new possibilities, creativity and invention. This is where our opportunity lies. We can use this moment of global transformation to reassert our capacity to innovate, to inspire through creative and business excellence, to connect with our audience as powerfully as ever. We will be a leaner organization, but we will always be champions of new ideas, champions of all of our customers and brands, and leaders in new ways of doing business.

Everyone here contributes to MTVN and Viacom every single day and night without exception. We hate to see dedicated friends and co-workers leave us, and we say goodbye with care, gratitude, support and respect.

Thank you all for your continued commitment to MTV Networks.

– Judy

]]> http://allthingsd.com/20081204/viacom-lays-off-850-takes-450-million-charge/feed/ 0 http://allthingsd.com/20080109/lost-in-translation-how-do-you-say-that-in-geek/ http://allthingsd.com/20080109/lost-in-translation-how-do-you-say-that-in-geek/#comments Wed, 09 Jan 2008 00:01:00 +0000 Katherine Boehret http://solution.allthingsd.com/20080109/lost-in-translation-how-do-you-say-that-in-geek/ This week at the Consumer Electronics Show in Las Vegas, the majority of attendees are doing their darndest to speak the geek language. “Geek,” though just a letter away from “Greek,” can be just as confusing to those who aren’t fluent speakers. Below, find a guide to terms and definitions used in some key technology categories. It will help you speak geek with the best of them, whether at CES or browsing products in your neighborhood electronics store.

Digital Cameras

Megapixels: This term describes the highest resolution photo a camera can take. Often mistaken as the most important factor in a digital camera, a high megapixel count — such as 10MP or more — isn’t necessary for the average user unless he or she plans on heavily editing or enlarging photos. Most new digicams offer between five and eight megapixels, which is usually more than enough.

Optical or Digital Zoom: Optical zoom, determined by the physical movement of a lens, matters much more than digital zoom, which digitally alters an image using the camera’s internal computer. Camera companies still try to confuse potential buyers by listing a camera’s total zoom, or the optical and digital zooms multiplied together. Ignore total zoom numbers and instead focus on optical, which now averages around 5x for many new cameras.

Image Stabilization: When generously sized LCD viewing screens started replacing optical viewfinders, they also forced users to hold their cameras at arm’s length, making for plenty of blurry photographs. To remedy this, camera manufacturers have added image stabilization, tools once found only in high-end SLR models. Optical (also called “mechanical”) and digital image stabilization correct for unsteady hands and moving subjects, respectively. Cameras with both types advertise dual image stabilization, which corrects for both situations and costs more.

Mobile Devices

HSDPA and EVDO: HSDPA, or High Speed Downlink Packet Access, is the name for AT&T‘s 3G, or third generation, mobile network that operates at roughly the speed of a slower DSL in a home. HSDPA is available in most major metropolitan areas and is seen as the competitor to Verizon and Sprint’s EVDO (Evolution Data Only) networks, though the popular iPhone runs on AT&T’s network using Wi-Fi and EDGE technology rather than HSDPA.

Multi-Touch Technology: Most popularly found on Apple’s iPhone and iPod touch, multi-touch is starting to show up in other products, such as in Microsoft‘s Surface, a coffee-table-like computer. Rather than just responding to on-screen touches, this technology enables moving, resizing and zooming pictures and Web pages using one or more fingers simultaneously. Look for many more devices — mobile and otherwise — to incorporate multi-touch in the future.

GPS: Global Positioning Systems are most often found in cars — either built-in or on portable devices from companies like Garmin and TomTom. These gadgets use satellite technology to determine geographic location, and high-end models even display Web content like news and weather along with directions. GPS integration in mobile devices can be used to plot routes in cars, can help users find nearby businesses while on the go and can link friends by showing one where the other is located and what they’re doing.

Digital Music

DRM: Digital rights management is a set of standards that protect the intellectual property rights of online content like music and videos, preventing it from being illegally distributed across the Web. In the past year, Vivendi‘s Universal Music Group, Apple and (most recently) Sony BMG said they will start selling DRM-free versions of songs, often for a higher price. In Apple’s iTunes store, these files are called “iTunes Plus” and aren’t restricted like other iTunes content.

MP3: MP3 files are open, without any DRM restrictions. Files that you rip (copy) from your own CDs are usually converted into MP3s, though iTunes users can automatically rip tracks into that program’s special format, called AAC. MP3 files can be uploaded to social-networking sites for sharing with friends and online communities.

These file types are protected by rights that tie them to specific players. Generally, AAC files make up the majority of tracks sold on Apple’s iTunes store and play only on Apple’s iPods; WMA files are Microsoft’s version of proprietary files.

Wi-Fi

The popularity of Wireless Fidelity, or Wi-Fi, brings this technology to more and more portable devices like the iPod Touch and Microsoft Zune and gives companies good reason to incorporate Wi-Fi receivers in new computers — laptops and desktops alike. While available in many flavors, different letters like b, g, a and n stand behind Wi-Fi’s more technical name, 802.11, to help discern one version from another according to characteristics like speed and compatibility. The latest version, “n,” offers the greatest range and speed, and “n” devices are usually compatible with earlier versions.

Televisions

HDTV: High-definition television has now become the standard, capable of displaying vastly better pictures, provided the source is also HD. Today’s more popular flat panel HD televisions are LCDs, or liquid crystal displays, though plasmas still hold their own. Recording HD content can’t be done with a regular digital video recorder; instead, a special HD recorder is required to capture this higher quality content.

480p vs. 1080i vs. 720p vs. 1080p: These numbers refer to the resolution, or sharpness, of a digital display, while “p” stands for progressive and “i” stands for interlaced. A resolution of 480p, known as EDTV or Enhanced Definition TV, is found most often in low-end plasmas or LCD screens. A TV with a resolution of 1080p is currently considered the Holy Grail, and costs the most. But 1080p pictures usually can’t be distinguished from less expensive 1080i or 720p pictures by average viewers at the typical distances from which most folks watch TV.

Blu-ray vs. HD DVD: Blu-ray and HD DVD are incompatible high-definition disc formats that continue to fight a seemingly endless battle to replace the DVD. The Blu-ray camp is led by Sony and the HD DVD camp is led by Toshiba. The two formats aren’t so different, technically speaking, but their very existence is confusing to consumers. The recent decision made by Time Warner‘s Warner Bros. to use Blu-ray gives Sony’s side a boost, and now Viacom‘s Paramount is rumored to be switching to Blu-ray from HD DVD. Dual-format players from Samsung and LG offer some solace.

Email: mossbergsolution@wsj.com

]]> http://allthingsd.com/20080109/lost-in-translation-how-do-you-say-that-in-geek/feed/ 0 http://allthingsd.com/20070322/copyright-enforcement/ http://allthingsd.com/20070322/copyright-enforcement/#comments Thu, 22 Mar 2007 00:01:00 +0000 Walter S. Mossberg http://ptech.allthingsd.com/20070322/congress-must-make-clear-copyright-laws/ Here comes another in the long line of lawsuits between media companies and Internet companies over who gets to distribute content. This time it’s Viacom, the enormously rich owner of properties like Paramount Pictures and Comedy Central, suing Google, the enormously rich owner of YouTube.

The issue: Viacom wants to get paid more than Google wants to pay it for all of those fuzzy, two-minute clips from programs like “The Daily Show” that users post to YouTube. The companies tried to negotiate a deal, but the talks failed, so Viacom is suing for $1 billion.

I am not a lawyer, and I have no idea how this lawsuit will wind up. I suspect it is mainly a bargaining tactic by Viacom. But I know one thing: This fight isn’t primarily about consumers and their rights, and its outcome won’t necessarily make things better for Internet users.

Consumers won’t be a party to this case any more than they were in the room when the latest major copyright law was passed by Congress. That law, the 1998 Digital Millennium Copyright Act, was enacted at the behest of record labels and movie studios. Their purpose was to stop people from using computers and the Internet to distribute digital copies of material to which they didn’t hold either the copyright or a distribution license.

That idea makes sense. Unlike some Internet zealots, I believe that intellectual property is real and that some form of copyright is appropriate to protect it. I am against the unlicensed copying of DVDs for sale on street corners, or the mass uploading of songs to so-called sharing sites.

The Internet and technology companies managed to insert a clause in the DMCA sparing them from penalties for carrying copyright content on grounds they were just innocent conduits. That will be a big issue in the Viacom case. But consumers got no such get-out-of-jail-free card.

In fact, the DMCA, and other recent laws and regulations passed under pressure from media companies, are pretty hostile when it comes to consumers. They turn essentially innocent actions into unlawful behavior, because they define copyright infringement too broadly. They have given rise to a technology called Digital Rights Management that causes too many hassles for honest people and discriminates against the new digital forms of distribution.

Even Apple CEO Steve Jobs, who created a DRM system for music that actually has worked, recently called for an end to copy protection of legally sold music, mainly because the record labels apply that protection only to online sales, not to physical compact discs.

Most honest people wouldn’t consider it piracy to buy a CD, copy it to a computer and email one of the song files to a spouse or friend. But the record industry, backed by the laws it essentially wrote, does. Most honest people wouldn’t think that uploading to YouTube a two-minute TV clip, which they paid their cable company to receive, is piracy. But Viacom, backed by the laws its industry essentially wrote, is demanding that Google remove all such clips.

To be fair, Viacom, unlike the misguided record labels, isn’t suing the actual consumers who posted these clips. It’s suing Google because it claims Google is making money from them and refusing to pay for that privilege.

Google isn’t blameless here, either. It does make money, at least indirectly, from other companies’ copyright material, for which it didn’t pay, even though it has negotiated some paid deals and says it is willing to negotiate others. And while Google says it diligently removes all copyright clips for which it hasn’t secured paid rights, every YouTube visitor knows that this system is, at best, imperfect.

As a nonlawyer, I think these clips seem like “fair use,” an old copyright concept that seems to have weakened under the advent of the new laws. Under fair use, as most nonlawyers have understood it, you could quote this sentence in another publication without permission, though you’d need the permission of the newspaper to reprint the entire column or a large part of it. A two-minute portion of a 30-minute TV show seems like the same thing to me.

But why should I have to guess about that? What consumers need is real clarity on the whole issue of what is or isn’t permissible use of the digital content they have legally obtained. And that can come only from Congress. Congress is the real villain here, for having failed to pass a modern copyright law that protects average consumers, not just big content companies.

We need a new digital copyright law that would draw a line between modest sharing of a few songs or video clips and the real piracy of mass distribution. We need a new law that would define fair use for the digital era and lay out clearly the rights of consumers who pay for digital content, as well as the rights and responsibilities of Internet companies.

If you don’t like all of the restrictions on the use of digital content, the solution isn’t to steal the stuff. A better course is to pressure Congress to pass a new copyright law, one that protects the little guy and the Internet itself.

Email me at mossberg@wsj.com. See video versions of my reviews at wsj.com/mossbergvideo.

]]> http://allthingsd.com/20070322/copyright-enforcement/feed/ 0 http://allthingsd.com/20070308/dvd-combo-player/ http://allthingsd.com/20070308/dvd-combo-player/#comments Thu, 08 Mar 2007 00:01:00 +0000 Walter S. Mossberg http://ptech.allthingsd.com/20070308/dont-get-caught-in-battle-over-dvds/ Competition in technology products is often a good thing. Microsoft and Apple spur each other on by competing in computer operating systems. Research in Motion’s BlackBerry smart phones and Palm’s Treo models have the same sort of rivalry.

Partisans of these platforms can argue all day about which is better. But the competitors have some things in common. Windows computers and Apple Macintoshes can both display the same photos and office documents, and play the same MP3 songs and YouTube videos. BlackBerrys and Treos can receive the same emails and call the same phone numbers.

It isn’t perfect. There are some files that don’t play well across platforms. But most common content does.

Yet there’s another technology competition that doesn’t share content well and offers few, if any, benefits to consumers. It’s the fight among two groups of technology companies and movie studios to sell a successor to the DVD. Each has developed a new type of disc that has the ability to show movies in high definition. To my eye, the pictures they deliver are identical.

Neither of these competing new discs, called Blu-ray and HD-DVD, works in current DVD players. They require very expensive new players, and the new players can’t handle both new disc formats, only one or the other.

Adding to the annoyance: Some movie studios release movies only in one of the two formats. Paramount and Warner Brothers support both formats, but Universal supports only HD-DVD, and Disney, Fox and Sony only Blu-ray.

So, in order to be sure you can play any movie released as a high-definition disc, you would have to replace your old DVD player with two new, much costlier players. It would be like having to buy separate TV sets to watch different networks’ programs.

Now, however, one gutsy company, LG Electronics, of Korea, a longtime member of the Blu-ray camp, has broken ranks and introduced a new combo player that can handle three formats: Blu-ray, HD-DVD, and regular old DVDs. It’s called the BH100 Super Multi Blue.

I’ve tested this combo player and found that it plays both new formats, as well as regular DVDs, just fine. But it’s more expensive than most single-format players and has some serious limitations when navigating through the menus on HD-DVD titles. For now, I can only recommend it for serious videophiles with deep pockets, but I’m hoping it’s the start of a trend that will end the foolish war.

The BH100 costs $1,200. That’s vastly more expensive than the newest DVD players, which, for less than $100, can take a regular DVD and “upscale” it so it looks better on a high-definition set. But that $1,200 isn’t so outrageous if you compare it with the price of buying two separate Blu-ray and HD-DVD players, which can reach or exceed $1,000 total. And the new LG takes up only one input on your TV, occupies less space on your component shelf and requires just one remote control.

I tested the LG combo player on my high-definition TV with this year’s Oscar-winning best picture, “The Departed,” and with “Superman Returns,” each of which is available in both of the new formats, as well as on DVD.

All played perfectly. The picture looked great in both formats and was noticeably better than an upscaled DVD image, which the LG unit also can produce. The LG outputs both new formats in a high, but grossly overhyped, resolution called “1080p.”

But the BH100 did a much better job with the Blu-ray discs than with the HD-DVD titles. That’s because while the combo player can play HD-DVD movies perfectly, it can’t display the HD-DVD discs’ menus for selecting scenes or accessing special features.

These menus usually offer the title and a photo to identify a scene, and the title and/or a description of the special feature. But on the LG BH100, the HD-DVD menus have no pictures, titles, or descriptions and look nothing like the original. They only identify scenes by number and duration. That makes it hard to find, say, the deleted scenes from “The Departed,” or the documentaries on the Superman disc.

The BH100 was based on a Blu-ray-only player and lacks the special chips HD-DVD players use to display the menus properly. LG had to concoct its own rudimentary replacements for those menus. The company says a future combo model could include the chips and thus display the HD-DVD menus as well as it does the Blu-ray menus, but it hasn’t decided whether to make such a product.

One reason for that decision may be the competing approach to solving the stupid disc war. Warner Brothers is working on a combo disc, instead of a combo player. This disc would hold both the Blu-ray and HD-DVD versions of a movie, so you could pop it into whichever type of player you own.

Until the electronics and movie companies support universal high-definition players and/or universal high-definition discs, I don’t recommend that most people invest in either technology. Why prolong a war that’s bad for consumers?

Email me at mossberg@wsj.com. See video versions of my reviews at wsj.com/mossbergvideo.

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