Disney has become the first major studio to bypass major cable providers like Starz and HBO in favor of an Internet content provider with its home releases -having entered into a multi-year licensing agreement with Netflix for the exclusive right to stream content to its U.S. subscribers. Financial terms weren't disclosed, but analysts estimate that Netflix will pay Disney more than $350 million annually.
Is this the death knell for Big Cable in the USA?
Strong Internet content providers and film studios will benefit, while the premium cable channels will have to learn to adapt to an industry that will begin changing more rapidly than ever now Disney is apparently driving change.
According to the terms, starting 2016, Netflix would be able to stream movies from the Disney Studio and its associated studios instantly after release. Moreover, Netflix would gain access to Disney's direct-to-video releases starting 2013.
The New York Times reports:
The agreement is the first time one of Hollywood’s big studios has chosen Web streaming over pay television. Netflix has made similar “output” deals with smaller movie suppliers like DreamWorks Animation and the Weinstein Company. But all of the majors — Disney, Paramount, Universal, Warner Brothers, Sony and 20th Century Fox — have stayed with Starz, HBO or Showtime until now.
Library titles like “Dumbo,” “Alice in Wonderland” and “Pocahontas” will become available on Netflix immediately, Disney said. Netflix will begin streaming new release Disney films starting in late 2016, when the current accord with Starz expires. The deal announced on Tuesday includes direct-to-DVD movies…With the Disney deal, Netflix will be able to offer customers exclusive access to a pipeline of films that are reliably some of the year’s biggest box-office successes. Netflix has also made it a priority to strengthen its children’s and family offerings.
The current deal is a big positive for Netflix and has come at a crucial time and more partnership agreements with Hollywood studios and the overall improvement in content now make its streaming services distinguishable from other service providers such as HBO and Amazon Prime Instant Video.
Netflix shares surged $10.65, or 14 percent, to close Tuesday at $86.65, its highest closing price since April. The stock of Starz's owner, Liberty Media Corp., sank $5.49, or nearly 5 percent, to $105.56. Disney shares added a penny to $49.30.
Stock dropped Debt ratings agency Moody's Investors Service said that it was keeping a stable ratings outlook on Starz after the Netflix-Disney deal.
"But the agreement is a credit negative development for Starz that highlights its vulnerability in the evolving content distribution landscape and could create downward pressure on Starz's ratings," it said.
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TDG's latest report, Social TV User Dimensions, offers detailed insight into consumers based on mid-2012 primary research - According to new research from The Diffusion Group, 38% of US. adult
broadband users currently participate in "social TV" activity at least a
couple times per year.
According to Michael Greeson, Director of Research and author of the new report, the widespread diffusion of broadband Internet services combined with rapid innovation in mobile technology has led to a convergence between what were previously distinct experiences: watching TV versus using a "computing" device. "As TDG predicted when the iPad was first introduced, in short order dual-device behavior would emerge, and that is precisely what is now taking place."
Aside from changing the essence of one's "personal TV experience," Greeson notes that social TV is subtly working its way into long-standing business models, in particular those relating to advertising, subscription services, and on-demand applications. "The real-time interaction of consumers with the TV program itself, not to mention other viewers, provides broadcasters with the opportunity to identify and market to finely filtered consumer segments with highly curated offerings." Such motives are in part behind Comcast's recent investment in Zeebox, which has introduced new customized second-screen experiences for more than 150 of NBC's programs. Time Warner, though not an investor in Zeebox, is expected to do the same for key HBO properties.
Other key findings of TDG's new report include:
38% of adult broadband users are by TDG's definition Social TV Users (STUs), engaging in such behavior at least a couple times a year.
Smartphones are the most popular device for social TV engagement, twice as popular as tablets (used by 87% and 42% of STUs respectively). Only 13% of STUs use both smartphones and tablets for these activities.
56% of STUs are between the ages of 18 and 34.
Research discerns two segments of Social TV Users: Talkers (those that only talk or chat about the program they are viewing via instant messaging or social networks) and Engagers (those who not only talk but use so-called synching apps to interact directly with the TV show).
STU Talkers are disproportionately female with an average age of 37, while Engagers, are primarily male with an average age of 34.
Engagers are three times more likely than Talkers to consider themselves early technology adopters.
Engagers are significantly more likely than Talkers to make use of fee-based OTT services like Netflix.
This data is but a small sample of that featured in TDG's new report, Social TV User Dimensions, which is available exclusively to TDG members. For more information on becoming a member, visit www.tdgresearch.com or contact our Research Services Team now at 469-287-8050.
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After
spending six months in beta, Zapstreak;
the Polish startup with a mobile SDK for media app developers, today announces its
global launch. When embedded within a media app Zapstreak’s technology creates an
Airplay experience where users can beam music, videos or images to a connected
TV, without the need for any additional hardware.
For the end-user, Zapstreak adds a totally new dimension to the viewing experience at home. Users can share images with friends and family, watch their favourite movies on the TV screen or listen to music, all at the touch of a button. For developers, Zapstreak offers the opportunity to increase the ‘stickiness’ of their media apps, making them more appealing for the consumer and setting them apart from the competition. In addition to this, Zapstreak represents an extremely cost-effective way of negating huge native app development costs.
Zapstreak adopts the use of DLNA (Digital Living Network Alliance), the technology standard that allows the sharing of digital content between connected devices like TVs, Wi-Fi radios, home entertainment sets or game consoles. The vast majority of connected TVs being sold today include the DLNA standard, an opportunity the founders of Zapstreak are looking to capitalise on.
According to a recent study by adRise, the growth rate of connected TV development is increasing at ‘breakneck pace’. Findings showed that usage among all connected TV devices is increasing, leading to a 25x growth surge in the use of apps. During Zapstreak’s beta phase alone, an impressive 1000 HOURS of content was beamed - over a month in total.
During the beta phase, Zapstreak’s technology has been adopted by a number of developers looking to offer more to their users. musiXmatch, used to discover song lyrics, is one such app. “Our goal is to create the best music experience both on mobile and desktop”, said Francesco Delfino, co-founder, musiXmatch. “When we decided to add DLNA support, we choose Zapstreak’s SDK because it’s simple, powerful and multiplatform. Exactly like our apps.“
“Our goal is to provide the best video training in the most convenient way,” said Thomas Friedl, lead developer of video2brain, an online mobile tuition platform. “We want to serve as many platforms as possible, giving our subscribers the choice to learn whenever and wherever they want. Using Zapstreak, we were able to bring our video based courses to the living room, turning smart TVs into a rich source of 21st century education.”
Matt Rutkowski, CEO and co-founder of Zapstreak, said, “We’re really looking forward to the full launch of Zapstreak. The team has been building up to this moment for some time and we’re looking forward to working closely with more and more Android developers over the coming months. “
His partner and co-founder Stefan Bielau continued, “We’re hearing every day that the global app market keeps growing. As the industry becomes increasingly crowded, developers need to be able to set themselves apart from the competition, recruit more users by offering extra functionality and then retain them. We believe Zapstreak offers an unrivalled opportunity to help do this.”
From today, the first hundred developers to sign up will have a month’s free access to the SDK. To sign up, please visit here. An SDK for both Windows Phone and iOS and are also planned for the coming months. For details on pricing, please visit here.
For more information about Zapstreak, please visit www.zapstreak.com.
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Magic Ruby, the leader in delivering monetizable content and applications for the second screen, has announced that the Sons of Anarchy app, "SOA Gear," developed by Magic Ruby for FX Network, has been honored with Delivery Agent's TEC Awards (The Entertainment Commerce Awards) for Best Contextual Campaign for the Second Screen. The TEC Awards recognize excellence in commerce programs tied to entertainment, sports and music content.
Released in Fall 2011, "SOA Gear" was built on Magic Ruby's application infrastructure and synchronized original content and interactive shopping with four broadcast episodes of Season 4 of Sons of Anarchy and the Blu-ray release of Season 3.
Building on the success of the app, Magic Ruby partnered with DEFY Creative to release an enhanced version, simply called "SOA," for the current Season 5 of Sons of Anarchy. The newly-branded "SOA" app syncs interactive second-screen features with linear broadcast or recorded episodes of Sons of Anarchy, airing Tuesdays on FX, and with the recently released Season 4 Blu-ray disc, available in stores. This year, Magic Ruby optimized the second-screen experience with synchronized original content including story boards, social interaction mapping, episode information, cast biographies, trivia, games and an expanded e-commerce marketplace enabled through Delivery Agent's TV Wallet(TM) where viewers can instantly purchase hundreds of items featured in, or inspired by, the award-winning series.
"Every year Delivery Agent honors companies that are creatively using commerce to monetize content and engage audiences," said Mike Fitzsimmons Delivery Agent CEO. "We are excited that the TV Wallet platform was used by Magic Ruby to seamlessly bring commerce to the Sons of Anarchy second screen experience."
"This new second-screen experience allows viewers to dive deeper into the compelling world of Sons of Anarchy through closer, personal interaction with the characters, storylines, fellow fans and iconic products that define the show," said Tom Engdahl, President and CEO of Magic Ruby. "FX and Delivery Agent are visionary partners in their deployment of the second screen."
The "SOA" app is available for download at the App Store(SM) for Apple iPhone, iPad, and iPod, and Google Play for Android smartphones.
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Woven by litl has announced the launch of "Woven for Samsung Smart TV," an extension of its mobile photo-viewing app that enables picture viewing on the largest and most social screen in the home—the television. Woven for Samsung Smart TV offers a new way to share special photos with family and friends, eliminating the need to huddle around small screens or pass a phone or tablet from person to person. The perfect app for the holiday season, Woven's first-of-its-kind social photo viewing experience is available immediately through a free download from Samsung's TV Apps store.
"Everyone enjoys solo photo browsing on their phone or tablet, but viewing and storytelling with loved ones is much more social and engaging on a large screen," said Jack Harvey, litl's EVP of strategy and development. "In collaboration with Samsung, it's exciting to deliver a simple and fun viewing experience on both a consumer's smallest and largest screens."
Social photo viewing with Woven for Samsung Smart TV is easy. After downloading Woven's free mobile app for Android or iOS phones and tablets, users then download the companion Woven for Samsung Smart TV app through their web-connected Samsung television or Blu-ray player. The two apps securely pair with one another, transforming the user's phone or tablet into a remote control that manages photos on the TV screen. The user can now quickly and effortlessly click through entire collections of photos from online sources like Facebook, Picasa, Shutterfly, Flickr, and Instagram.
"We're pleased to offer apps that enrich our consumers' experience with their Samsung Smart TVs and Blu-ray players," said Eric Anderson, Samsung's Vice President of Content and Product Solutions. "Woven's use of consumers' phones and tablets to control the photo viewing experience on their TV will make it an appealing app this holiday season and beyond."
Woven on any device creates a fun and simple way to gather photos from a range of on and offline sources and bring the organized collection to phones and tablets for on- the-go viewing. Now optimized for at-home photo viewing, Woven for Samsung Smart TV joins popular mobile versions of the app already released for Apple's iOS, Google's Android, and Microsoft's Windows Phone operating systems.
Woven for Samsung Smart TV, available at launch in the US and Canada, can be downloaded free of charge from the app store on Samsung's 2011 and 2012 Smart
TVs and Blu-Ray players. Woven's mobile app with support for TV viewing is globally available, also for free, for the iPhone, iPod Touch, iPad, NOOK Tablet, NOOK Color, Kindle Fire, and Android-powered phones, tablets, and cameras. Woven for Windows Phone, newly launched, does not yet support TV viewing.
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UK's Connect Four Productions, a consultancy specialising in Convergent Format and Viewer Engagement solutions in TV, are now the official partner of American technology company Mass Relevance, who's powerful social engagement platform is deployed with 25 broadcasters in the US.
Connect Four Productions will add and create enhancements to the console to help package and sell Social TV solutions into the UK broadcasters more quickly and effectively.
"We endorse the most appropriate engagement tech which will provide the biggest ease of use and enhancement to any social show, particularly live," said Tom Bowers MD of Connect Four, on why they are working with Mass Relevance. "Social TV needs to be streamlined and endorsed by a reputable company that understands the broadcast space in respect to how to empathetically introduce social, with the most appropriate technological and creative solutions that will enhance new and existing formats."
"Mass Relevance also have access to the full firehose from twitter, something that other competitors in this space do not - making analytics off the live activity the most accurate and tangible... something which is key for broadcasters to have to start using the social information in order to build up understanding of the viewers social behaviour around different show genres."
Connect Four is a consultancy specialising in social TV concept creation, convergent format and broadcast viewer engagement solutions and have worked on numerous high profile television shows such as The Voice, Million Pound Drop and Got to Dance.
Mass Relevance manage the live social media aggregation and articulation for such shows as X Factor US, Idol, and So You Think You Can Dance and their console aggregates and curates a multitude of social media streams such as Twitter, Facebook and Instagram.
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The United Kingdom leads Europe in the adoption of both standalone
over-the-top (OTT) services, as well as operator-owned multiscreen (TV
Everywhere) services.
Many UK consumers fit the multi-device profile, with more than 10% of
the population in the UK already boasting an average of four connected
devices. SKY, with its growing Pay TV subscribers, (9.5 million) and
Virgin Media (3.7 million) continue to invest heavily in their
multi-screen offerings. Today over 50% of broadband users are using pure
OTT services (fueled in part by the BBC iPlayer) while Pay TV
operator-owned multiscreen services capture only about 17.5% of Pay TV
households.
“While multiscreen services will not catch up with pure OTT services by
2017, the growth of multiscreen platforms will be faster than OTT
services,” says Sam Rosen, practice director, ABI Research.
Pure OTT video services in the UK continue to rapidly evolve with an increasing number of local and international players entering the market. LOVEFiLM, with 2.5 million subscribers, remains market leader in 2012, but faces stiff competition with Netflix gaining 1 million subscribers within 8 months of its entry into the market. As a result of increasing competition and choice in pure OTT video services, revenues are expected to surpass $500 million by the end of 2012. ”In pure OTT video services, content is the king, but in the short term operators that fail to differentiate purely on content may be able to focus on user experience to woo consumers. Netflix’s content offerings in Europe lack depth; however device penetration and good user interface, makes an enticing offering for consumers,” according to Adarsh Krishnan, senior analyst at ABI Research.
Traditional Pay TV operators are also doing a better job of capturing customers with their multiscreen solutions; BSkyB’s Sky Go already has respectable penetration with nearly 26% of their total customer base using multiscreen services. Virgin, with their TiVO app, is just entering the multiscreen game. Meanwhile, the lines are starting to blur with the launch Hybrid STB YouView by telcos and market leader SKY's foray into OTT service (Now TV).
These findings are part of ABI Research’s OTT and Multi-screen Services Research Service which measures consumer’s transition to the over-the-top (OTT) and multiscreen experiences, operator’s growth, and strategies for players within the markets.
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Forbes Michael Wolf and'Dijit's Jeremy Toeman chat on Digit, new features of Nextguide and Social TV. Click below.
In the latest update to Dijit's NextGuide application, several new features have been introduced that make it even more "sociable:"
Amazon Prime and Amazon Instant Video is now included among the other services Dijit links in to, as well as a bevy of additional features:
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Nielsen, and NM Incite, a joint venture between Nielsen
and McKinsey & Company, have announced the acquisition of
SocialGuide, a leading provider of social TV measurement, analytics and
audience engagement solutions. The acquisition represents Nielsen’s
commitment to delivering comprehensive media measurement solutions, and
expands NM Incite’s social media research and analytics
capabilities.Social TV is transforming the consumer viewing experience,
with more than 33% of Twitter users actively tweeting about TV-related
content*.
SocialGuide is a comprehensive, real-time social TV capture service covering programming across 232 U.S. TV channels in English and Spanish, and over 30,000 programs. Built for linear TV, SocialGuide’s intelligent analytics and engagement platform provides insight on the social impact of TV, enabling networks to engage with the social fan base in realtime.
“The skyrocketing adoption and use of social media among consumers is transforming TV-watching into a more immediate and shared experience. As TV networks see this phenomenon unfold, they require understanding of the impact of social TV on their programming, ratings and advertising effectiveness,” said Steve Hasker, President, Global Media Products and Advertiser Solutions at Nielsen. “Nielsen’s expertise in creating industry standard consumer measurement means we are uniquely suited to establish a deeper understanding of today’s highly-engaged consumers through social TV metrics. We are thrilled by the addition of SocialGuide to our portfolio and welcome them to Nielsen.”
SocialGuide will be integrated immediately into NM Incite, the hub of Nielsen’s social media measurement and analytics efforts. SocialGuide’s software technology and data streams complement NM Incite’s existing software and data solutions. Together, Nielsen, NM Incite and SocialGuide will focus on efforts to quantify the relationship between social TV and TV ratings to enable advertisers to maximize the impact of their spend, and provide new research metrics to understand social TV’s impact on consumer behavior and viewing habits. Terms of the acquisition were not disclosed.
“The opportunity in social TV is too big to ignore and there is a need for standard metrics and research to uncover the effect of social TV on programming and advertising strategies,” said Andrew Somosi, CEO of NM Incite. “TV networks are expanding their research, advertising and engagement efforts across social media. The powerful combination of Nielsen, NM Incite and SocialGuide will enable us to deliver unparalleled insights and capabilities to our TV and advertiser clients."
“Nielsen is the industry leader in providing cross-platform and multi-media measurement solutions,” said Sean Casey, founder of SocialGuide. “There is no greater opportunity to establish industry metrics and standards in social TV than bringing Nielsen, NM Incite and SocialGuide together. We are incredibly excited to work together and bring TV networks the next level of measurement.”
Analysis at Forbes, here and here.
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The number of North American households with a smart TV will reach 87 million by 2016, according to new research from Parks Associates, which today released a new whitepaper "Connected TV Environments: The Next Iteration of TV Advertising." This whitepaper, commissioned by Rovi, examines new opportunities in advertising based on the growing adoption and usage of connected TV platforms in the U.S. and Western Europe.
"Connected TV systems have the ability to change viewer perceptions of advertising," said Heather Way, senior research analyst, Parks Associates. "These systems enable advertising to be integrated into device navigation and content search, engaging consumers at a point of high receptivity and enabling them to immerse themselves in a rich brand experience. As a result, over 50% of U.S. connected-TV households surveyed by Rovi consider these ads as content, containing useful and valuable information, and they are much more likely to remember and click on these ads."
Other key data points:
"Consumers are more receptive to advertising that takes this brand-infused approach," said Jeff Siegel, senior vice president, Worldwide Advertising, Rovi Corporation. "Advertising on connected TVs that provides more immersive brand experiences has a positive impact on consumers. Over 80% of our connected-TV households state they consider these advanced campaigns to be valuable sources of brand information."
Connected-TV households in this whitepaper are defined as households with either a smart TV or Blu-ray player connected to the Internet. Adding connectivity to these devices has opened these screens to interactive advertising, new program guides, and opportunities to promote premium services such as video-on-demand. Parks Associates research forecasts over 70 million Blu-ray players, the vast majority Internet-connectable, will be sold worldwide in 2016.
The whitepaper highlights video-viewing activities, ad recall and response triggers, and second-screen activities for connected-TV households in the U.S., the U.K., Canada, and Germany. To download a copy of the whitepaper, visit http://www.parksassociates.com/connectedtv
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Viggle has been in serious trouble for about six months - that much I have heard through the grapevine - leaking cash like a sieve and burning money at rate that, in an era of 'lean startups' really does no good for the entire emerging sector.
Ryan Lawler at Techcrunch writes:
...4.5 million between Viggle and GetGlue. But what really matter are active users, as pointed out on AllThingsD. On that front, the combination doesn’t look nearly as good: Viggle CEO Robert Sillerman told AllThingsD that the two have about 1.5 million altogether. And that’s the problem with today’s Social TV apps: It’s difficult to get either broadcasters or advertisers to care about a couple million users here or there. Maybe that will change if one hits critical mass.
With such a tiny active userbase and such large numbers being bantered around... only in America? These kinds of startups would never get funded in the tens of millions in Europe - which is partly why most European Social TV startups are in the B2B realm - because they have had to out of necessity. And experience gleaned by zeebox in basically forcing UK broadcasters to the table via a game-changing and pretty tough bSkyb deal gave them the traction and experience to move into the US and do deals such as:
Cory Bergman at Lost Remote also sees the significance in a similar light:
With the addition of Zeebox in the U.S. market — and its partnership with Comcast — the race to scale has taken on new significance. Not to mention, Twitter is showing a concerted interest in growing its second screen features, and Yahoo-IntoNow-ABCNews is always a combination to watch. The Viggle-GetGlue acquisition certainly puts them in a strong position, especially when you consider the likelihood that Viggle’s reward system will roll out on GetGlue.
Twitter showing interest is just the tip - Google is also heading that way and watch out for Facebook... if they make a move into this space - it could be a game changer.
This is only the first of perhaps many mergers, acquisitions and buyouts we will see over the next year. Companies like Movl, Ex Machina Games, Miso, and others with USPs and a long pedigree in the social TV space are certainly ones to watch.
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Viggle, the popular television loyalty
service has entered into an agreement to acquire GetGlue, the leading
social TV application, for cash and stock, Robert F.X. Sillerman,
Executive Chairman and CEO of Viggle announced today. The resulting
combined company will be the dominant force in the exploding social TV
market.
“We are very excited to join forces with Viggle! GetGlue has built a Social TV product that people love, and Viggle has become their favorite loyalty program for TV. Together we are positioned to deliver the next generation second screen experiences that delight and benefit users, networks and major brands.”
Under the terms of the deal, Viggle will pay $25 million in cash and 48.3 million shares of stock for GetGlue. Viggle Inc. will operate the Viggle and GetGlue brands, and GetGlue founder and CEO Alex Iskold will join Viggle Inc. in a senior executive position on its management team and as a member of its Board of Directors. Viggle will also absorb all 34 GetGlue employees.
“With this deal, we are combining very experienced and creative product, engineering and management teams that will continue to build great user experiences and provide industry leading platforms for consumers, networks and advertisers,” Sillerman said. “We will also be vastly increasing the Viggle user base and quadrupling our network partnerships. Viggle and GetGlue users can look forward to using the apps they have come to love as we add new and appealing features made possible by the combined resources of this clear industry leader.”
Alex Iskold, Founder/CEO of GetGlue said:
“We are very excited to join forces with Viggle! GetGlue has built a Social TV product that people love, and Viggle has become their favorite loyalty program for TV. Together we are positioned to deliver the next generation second screen experiences that delight and benefit users, networks and major brands.”
New York City-based GetGlue, founded in 2007, has been the leading social network for entertainment, enabling users to check-in and socialize while watching TV, discover what to watch via a personalized guide, and find great videos, images, and links from their favorite shows. It boasts more than 3.2 million registered users as well as a database with more than 500 million entertainment ratings and check-ins. GetGlueHD provides customers with a TV guide for the mobile era, listing both TV and online content in calendar form.
Viggle, launched in January 2012, rewards its more than 1.2 million registered users with points for their loyalty to and engagement with content around their favorite TV shows. Points can be redeemed for real-world rewards from places like Best Buy, Amazon, Fandango, Hulu Plus and iTunes, among others. Viggle’s audio verification technology recognizes and allows users to check into live, DVR’d and online TV content from more than 170 of the most popular broadcast and cable channels.
Since launching, the company has added real time engagement experiences Viggle LIVE and MyGuy to the platform. Viggle LIVE is a program of voting, trivia and polls that’s in synch with what the viewer is watching in real time. MyGuy is a next generation fantasy sports game that knows which teams are playing when the Viggle user checks into a game on TV. Both platforms allow Viggle users to earn Viggle points which they can redeem for real rewards. Available for free, Viggle can now be downloaded from Verizon Apps, Google Play and the Apple App Store. Viggle runs on iOS and Android-powered mobile devices with version 2.2 or above. Allen & Company represented GetGlue in the transaction, while Viggle handled the deal internally.
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