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Nielsen: Understanding The Two-Way Causal Influence Between Twitter Activity and TV Viewership

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LG SP530 product image

Lost in the Chromecast news yesterday was an announcement from LG and Entone on a new media streamer coming to retail. In itself, the streamer isn’t all that exciting. But pair the box with Entone’s 8-tuner gateway and you have a very interesting proposition for retail or the ISP channel.

To start, the streamer is called the LG SP530 Media Player, and it supports OTT services like Netflix, Hulu, and YouTube via LG’s Netcast platform (no WebOS in this one). The Media Player is the only Entone box LG is bringing to market now, but there is an option for LG, or any other CE player, to pick up Entone’s Magi media gateway as a partner product as well. The Magi gateway can receive content from over the air and from a cable network, and it can transcode video and stream it back out to any connected device.

Think of the deployment scenarios.

At retail, a combination of the gateway and streamer would give us OTT and OTA video all in one interface. MSOs could ultimately add their own apps like with the Xbox and Roku… or not. And we’d be able to watch video on a TV, tablet, or PC interchangeably.  Continue Reading…

Apple DVR proposal would pay for skipped ads

Have you heard? Apple wants to get into the TV business. And the latest? The company supposedly wants to create a premium service that allows users to skip commercials. But wait, there’s more! Apple apparently thinks it can set up a revenue-sharing system that will pay programmers for the ads that viewers skip. According to former Wall Street Journal reporter Jessica Lessin and “people briefed on the conversations,” Apple is literally proposing to compensate media companies for the dollars they lose to commercial skipping technology.

There are so many oddities and possible permutations to this particular idea that I have to wonder if the media leaks are accurate. First off, there’s the premium ad-skipping service. Haven’t we had DVRs for more than a decade? What’s new? And if nothing, why would Apple need or want to negotiate some new type of payment plan to do what TiVo or other OTA DVRs already do?

Second, there’s the issue of determining the value of a skipped commercial. Is an ad worth more depending on when and where it’s skipped? If viewers increase ad-skipping behavior with other services, is the value of the ad decreased? What if a viewer sees part of an ad, but not the whole thing? How is the revenue split decided? Will Apple provide data on user behavior to programmers to validate ad-skipping fees?

Third, if Apple is willing to negotiate with programmers, why not just use the standard retransmission fee model? Sure, it sucks. But does create a compensation plan that requires complex evaluations for every commercial skipped sound any better?

Maybe Apple’s proposal to programmers is actually a modified retransmission scheme with blanket ad-skipping fees worked in. However, even that seems odd because it suggests Apple is willing to set itself up to pay more for content in order to attract licensing deals. Ultimately that move would put it at a serious disadvantage among pay-TV providers. How would Apple stay competitive?

The whole situation here sounds weird to me. The way I figure it, either the news reports are wrong, or Apple still has a lot of work to do figuring out television programming in the living room.

Netflix exec talks historic Emmy nominations and the company's future

Who’s Buying Hulu?

Mari Silbey —  July 10, 2013

Hulu for sale

Someone is buying Hulu, and the list of suitors is down to three. Before the close of bidding last Friday, AT&T jumped in on a joint offer with the Chernin Group. Peter Chernin founded Hulu years ago when he was still president of News Corp., but his company’s bid was likely too low without the additional backing of AT&T. DirecTV and Time Warner Cable are also in the hunt, and rumor has it that the bids are upwards of $1 billion. Variety reports this morning that Guggenheim Digital is out of the race after submitting a bid below what Hulu was willing to take.

Hulu initially put itself on the auction block back in 2011, but backed away from a sale at the eleventh hour. Google and Dish were the leading bidders then, with Google reportedly offering up to $4 billion for the company as long as Hulu was willing to throw in expanded content licensing rights as part of the deal. (It wasn’t.)

Unlike Boxee, Hulu has built a significant consumer fan base, and the company says it earned close to $700 million in revenue in 2012. However, Hulu still isn’t profitable, and the issue of video licensing fees is a thorny one as programmers try to protect as much of their revenue as possible through the existing pay-TV ecosystem. Perhaps given those conditions, it’s not surprising that a pay-TV company – and not an outsider like TiVo or Google – appears set to come out on top when the Hulu sale finally closes.

flareWatch Cox with Fanhattan

Cox Communications is piloting an IPTV service in Orange County, California that combines cable television with Fanhattan’s Fan TV set-top and user interface. Todd Spangler at Variety broke the news about flareWatch late last week, and Cox has since confirmed the trial and Fanhattan partnership. Spokesperson Todd Smith says:

Cox is testing a video service with a unique user interface as part of a small trial in our Orange County, California market… We are early in the trial, but expect the product and experience could evolve during the trial based on customer feedback.

The big news here is the fact that Cox is bundling online TV service with a broadband connection rather than tagging it on to a traditional cable package. Beta pricing is listed at only $34.99 per month, and that includes big-name channels like ESPN and Disney.

However, the other interesting angle is Cox’s use of the Fanhattan UI. Forget the sweet little Fan TV box for the moment, Fanhattan has somehow succeeded on the software front where so many other start-ups have failed. It’s gotten a foot in the door with cable, and it’s done so without years of heartache and litigation. (Ahem TiVo, Boxee…)

I like Fanhattan. The TV guide app’s been plugging along since 2011 and getting better along the way. But what makes it so much better than a thousand other video discovery and aggregation apps?

Maybe it’s a case of good timing, or maybe Fanhattan has friends at Cox. Whatever the case, the accomplishment is significant. Fanhattan is playing with the big boys.

Who’s Buying Boxee?

Mari Silbey —  June 27, 2013

Boxee buyer

Rumors surfaced earlier this month that Boxee is about to get bought on the cheap. And while details are virtually non-existent on the identity of the buyer, we’ve never let that stop us from speculating before.

So who is the mysterious suitor? I see four potential acquiring types.

Hardware company
With Boxee’s software roots, it’s possible that a hardware manufacturer like D-Link could pick up Boxee’s video guide and DVR applications to bundle with retail boxes. If the price is right, I wonder if even Roku might be interested. Roku doesn’t want to spend the money to license fancy guide software for its super-cheap hardware. But if it could pick up the Boxee assets cheaply enough, the interface upgrade potential could be compelling.

Service provider
It’s hard to imagine that a pay-TV provider would bother with Boxee, given the other software options available, and the fact that the big operators are building their own next-gen UIs. However, maybe a small innovator would consider grabbing the assets just to break away from the standard software vendors and create some buzz. Wide Open West has made hay with the Moxi interface. Maybe somebody else on the tier-two provider list is ready to step up on the multi-screen UI front.

Media company Continue Reading…