Today's Top Stories Microsoft (Nasdaq: MSFT) has made a move to make online video--and particularly its own exclusive online video--a major piece of its Xbox gaming platform. Until now, Microsoft has depended on cutting deals with outsiders to get video content to run on the gaming platform. That should change now that the software giant has hired former CBS Network entertainment president Nancy Tellem and charged her with starting and running a Los Angeles-based production studio. Tellem's task is to use the studio as a base to develop video series that will be available "exclusively" on the Xbox platform, a Los Angeles Times story said. "What's so exciting about this opportunity is we're looking at the next iteration of television," Tellem told the newspaper. "We're starting from scratch and we'll be looking at linear and interactive content, both longer-form, like television, and shorter form." Tellem worked at CBS since 1997 and ran the entertainment division from 1998 to 2009. She joins former Warner Bros. chairman Terry Semel, who became chief executive of Yahoo in 2001, and Lloyd Braun, who headed to Yahoo in 2001 as a high profile entertainment executive who made the jump to a tech company. Most recently, Tellem served as an advisor to CBS boss Leslie Moonves where she was "known for pushing into digital media and oversaw the CBS.com website," the story noted. That's where she appeared on Microsoft's radar, and that's where her talks with the tech firm started. "Our early discussions with Nancy around what television could mean on the Xbox platform went well and it became clear her expertise from the television industry could accelerate the strategy we were pursuing," Phil Spencer, vice president of Microsoft Studios, told the newspaper. "We have always known the goal for Xbox is to be a platform for all forms of content." Apparently the deal gives Tellem a long leash to make Xbox a lot more than a gaming platform. "We're going to reach out to a very broad range of consumers. When I first got to CBS we looked at what the core audience was and built from there, and that's just what I'm going to do again," she said. "We have large visions as to where this could all go. Building up a studio in Los Angeles with a significant financial commitment is very important." For more:
- this story appeared in the Los Angeles Times Related articles:
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Britain's BSkyB has struck a new deal with Time Warner's (NYSE: TWX) Warner Bros. to extend an existing content partnership and step up the distribution of Warner Bros. movies across multiple platforms while collaborating on the release and marketing of films in the U.K. and Ireland. The apparent loser in the deal is Netflix, which, according to The Hollywood Reporter, had been after the same kind of deal with Warner Bros. Now the online video purveyor not only is behind the satellite and pay TV operator, but it's also not even on level footing with Amazon.com's (Nasdaq: AMZN) LoveFilm, which has a "second-window film deal" with Warner Bros. in the U.K., the story said. "We are always a bidder, but not always a buyer," a Netflix spokesman told the publication. "We evaluate each studio deal against the value we believe it will provide to our members." Apparently BSkyB saw some value in the multi-year deal--although it didn't release any financial figures of how much value that would be. According to terms that were released, Sky Movies will get first shot in the U.K. and Ireland at current Warner movies as well as future releases once their theatrical runs end. The films will also become available on BSkyB's online TV service, Now TV, for those with a Sky Movies monthly pass. "Once on Sky Movies, these films will be available on the service exclusively for more than a year," the partners told the publication. "The new distribution agreements span the first subscription pay TV and pay-per-view windows, enabling Sky to exhibit Warner Bros.' titles on its Sky Movies channels and video-on-demand services, and on a pay-per-view basis via Sky Movies Box Office and Sky Store." For more:
- The Hollywood Reporter has this story Related articles:
Amazon strikes video licensing deal with Warner Bros.
Sky's new Now TV service set to challenge Netflix, LoveFilm Read more about: Netflix
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 | | "Prometheus" is among the movies covered in the deal. | Rupert Murdoch's 20th Century Fox studio needs as many outlets for its movie and TV content as possible, since DVD and Blu-ray sales and rentals are falling off the cliff. So it seems reasonable that Murdoch was amenable to selling and renting his 20th Century Fox movie and TV content on Google's (Nasdaq: GOOG) YouTube and Google Play portals, even though he referred to Google as the "piracy leader" when he spoke of them in January. Another reason for the change of heart could be Google's recent announcements that it will be making it harder for pirate sites to show up in its search results. The latest relationship is more good news for Google, more good news for online video, probably not bad news for 20th Century Fox and probably not good news for Netflix (Nasdaq: NFLX), which sees yet another competitor bulk up to join Apple (Nasdaq: AAPL) and Amazon.com (Nasdaq: AMZN) in the battle for online viewers. Of course, as All Things Digital points out, the whole point could be moot for everyone because "none of the digital outlets have been significant revenue generators for the studios so far." Still, Fox is apparently willing to take a flier starting with "Prometheus," which it is running on every available digital outlet from Apple to Amazon to Microsoft (Nasdaq: MSFT) to Sony (NYSE: SNE)… and now Google and YouTube. A TechCrunch story added more detail to Fox's move from DVDs and Blu-rays--which are flagging--to online video, pointing out the studio is going one better than the rental model by making its online product available "a full three weeks before they hit store shelves," a move that the publication said "shows that someone recognizes that physical discs are no longer the future." On top of that, Fox is making the digital titles available for purchase for $15 or less, which is reasonable when you figure there are no packaging, shipping or handling costs associated with putting a title online. Since Fox has decided to pursue the digital video route and YouTube has a market, there's a good reason to go there for this initial play, although Murdoch's News Corp. has not yet backed other Google ventures like Google TV (is that still around?) and Google Fiber. For more:
- All Things Digital has this story
- TechCrunch contributed this story Related articles:
News Corp.'s Carey sees online future
Netflix lands multiyear content deal with 20th Century Fox for Latin America Read more about: 20th Century Fox
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There appears to be more than a small breakdown in communications between Netflix (Nasdaq: NFLX) and the folks who bring you cable channels A&E and The History Channel. The licensing agreement between the two channels--purveyors of such must-see fare as "Storage Wars," "Ice Road Truckers," "Pawn Stars" and "American Pickers" (on The History Channel), and "Dog The Bounty Hunter," "Gene Simmons: Family Jewels," "Hoarders" and "Intervention" (on A&E) comes to a close Friday. Right now, things appear to be unsettled about what that means. Variety, quoting "sources familiar with talks between the two companies," indicates that the two companies have "strikingly different interpretations" of the situation. Netflix apparently believes the contract is solid, though it recently cut about 40 series and miniseries "because the viewership didn't justify the licensing cost." A&E and The History Channel, however, still must agree to the terms. If they do consent, Netflix would keep 200 to 300 hours of content from the two channels on its site, said the article. "Content comes into and out of license periods almost daily," Netflix's Chief Content Officer Ted Sarandos said in a statement relayed to the publication. "While we do not comment on our deals and partnerships, expect some of the A&E and History programming to drop and some to remain on Netflix." Other sources told the publication that negotiations are far from over and that there are still questions about Netflix's insistence on some program exclusivity. An A&E spokesman declined to comment on this. Interestingly, it seems that A&E could be hurt worse than Netflix if things go awry. "Netflix has demonstrated an ability to drive tune-in back to new seasons of TV series by providing viewers a catch-up cache of episodes from previous seasons," the story suggested. Then again, A&E may be looking at a new world of video distribution that now includes fast-charging Amazon (Nasdaq: AMZN) Prime and Hulu Plus and even TV Everywhere initiatives by multiple MVPDs. While A&E owns other channels such as Lifetime, those other channels are not as deeply invested in the deal as A&E and The History Channel, which apparently have the bulk of the top content. Then there's the final matter of the content itself. "Unscripted content tends not to command anywhere near the price of scripted in syndication," the Variety story explained. "However, these networks' best unscripted series are often scheduled on air in marathon formats, which suggests they may have greater value than run-of-the-mill unscripted content conducive to the 'binge'-pattern consumption among Netflix subs," the story concluded. In a final piece of irony, it turns out Sarandos is a big fan of "Storage Wars," which he listed on a corporate blog as among his personal favorites. For more:
- Variety has this story Related articles:
Nielsen: 'Traditional' TV viewing wanes even as video viewing increases
Amazon wins big with deal to add 3,000 Epix movie titles
Bell Canada announces online video service to challenge Netflix Read more about: Netflix
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 | | Nintendo's new Wii U will support online video | Nintendo has added a live TV element to its strategy to make the next Wii--the Wii U, due for the U.S. market in November--more than just a game console. In addition to the usual array of games, the Wii U will offer consumers a shot at on-demand video from Netflix (Nasdaq: NFLX), Hulu Plus and Amazon.com (Nasdaq: AMZN) as well as the opportunity for second screen live TV consumption. The loaded lineup means that Nintendo is back in the game with competitors Sony (NYSE: SNE) and Microsoft (Nasdaq: MSFT), which have been offering video services and working with pay TV providers for a while now. And, while Nintendo still has a way to go in its battle with the Xbox and Playstation 3, it has come up with a differentiator over the competition. The Wii U's touchscreen gamepad can be integrated with a user's existing cable or satellite TV service, turning it into a remote control with IR blaster and second screen capabilities. In the TV mode, the gamepad can be used to browse titles from Netflix and live TV listings. TiVo owners will be able to control their DVR through the gamepad, which also turns into a second screen with access to game stats during sporting events and Twitter access thanks to an agreement between Nintendo and I.tv. The whole TV connection is called TVii, and it's free for users who pay the normal fees for Netflix, Amazon or Hulu Plus. That's a pretty big difference from the likes of Microsoft, which request a subscription fee for its Xbox besides the third party fees, and it's a big addition to Wii's originally announced intention to include support for Netflix, Amazon and Hulu Plus. For more:
- check out this GigaOM story Related articles:
Nintendo 'moving beyond' hardware with new online strategy
Amazon video streaming goes live on Microsoft's Xbox 360 Read more about: Nintendo
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