Today's Top Stories Video analytics purveyor Skytide has high hopes for over-the-top (OTT) video in 2013, predicting, among other things, that next year "may be the year when a commercially viable OTT model emerges that is equitable and sustainable for both content owners and ISPs and allows service providers to actually profit from their infrastructure investments." That sounds like a big task for a business segment that has shown promise but never really delivered in the past, even though, as the analysis points out, "OTT video providers such as Netflix (Nasdaq: NFLX), Amazon.com (Nasdaq: AMZN) Prime and Hulu are estimated to generate $8.2 billion globally in 2012." Skytide's "6 Online Video trends to Watch in 2013" report suggests the breakthrough will happen by the end of next year, when "more people will be watching OTT video than walled garden IPTV services often run by operators." Part of the optimism is based on the belief that the rise of longer form OTT content "will also change the current dynamic," especially if that content is of sufficient quality to be shown and enjoyed on a new generation of high definition TVs and connected video devices. The report also predicts that "[o]nline video traffic will continue to skyrocket… fueled by the proliferation of connected devices such as smartphones and tablet PCs, the rise of OTT video providers and their expanding content libraries and the migration of advertising dollars to online video." Advertising dollars, in fact, also make the list, as Skytide predicts online video advertising "will really hit its stride." These changes will not come without a price. The free ride on quality online video should end as long-form content attracts "new subscription revenue," the predictions continued. "[s]ubscription services will become more important. As consumers come to crave longer-form HD video content viewed anywhere, anytime, on any device, they will need to pay for it." All of these changes will be fueled by improved technology such as the "embrace of Adaptive Streaming" to help control IP data consumption and transparent caching. "With the rise of video viewing on tablet PCs and smartphones, the benefits of adaptive streaming really come to light," the predictions said. For more:
- Skytide has released these online video predictions Related articles:
Evolving OTT delivery launching an online video revolution
Accenture: About half of consumers watching OTT on TV
Survey: Most smart TVs will end up as dumb screens Read more about: Netflix, Amazon
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Netflix (Nasdaq: NFLX) announced Tuesday that it had signed a licensing contract with Walt Disney Co. (NYSE: DIS), giving it the exclusive streaming video rights to Disney's catalog of movies. Since Disney announced earlier this year it was shutting down its own online video streaming service, Disney Movies Online, due to lack of interest and funds, this will be a good way for the company to maintain its presence in the video streaming industry. Another advantage of the deal, from Disney's perspective, is Netflix's name brand recognition, experience and senior position in the market. These characteristics will no doubt help Disney promote its library to fans who might not have known Disney Movies Online even existed but who are nevertheless interested in the content Disney offers. The migration of these fans to Netflix, and exclusively Netflix, was surely one of the primary incentives for the online streaming giant to enter into the contract. This agreement does not only apply to already released Disney titles but also extends into the future: Netflix will hold streaming rights to all Disney films shown in theaters in 2016, the year Disney's contract with Liberty Media-owned Starz expires. If all goes as planned, the two companies should be able to give each other a helping hand in a time when the online streaming industry is growing at an exponential rate. Read more:
- see the Netflix release Related articles:
Disney to discontinue online streaming service
Hulu bulks up on CBS content in non-exclusive, multi-year deal
Hurricane Sandy no disaster for Netflix Read more about: Netflix, Disney
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Details including pricing and supported platforms have emerged about Redbox Instant by Verizon (NYSE: VZ), the companies' joint online streaming venture, according to an article in GigaOM. Information obtained by GigaOM based on portions of the Redbox Instant site (which appear to be no longer available) indicate the service will be offered starting at $6 per month. Viewers choosing this package will get unlimited access to the subscription video catalog, which may not be as extensive as rival Netflix's but will still offer some of the same big-ticket titles such as Thor and Iron Man 2. For $8, consumers receive four "Redbox credits" that they can exchange for Redbox DVDs from the company's kiosks, found at many grocery markets and convenience stores. These credits expire each month, however, so this option may be best for those interested in renting physical DVDs as well as watching programs online. As for supported platforms, the service will be available on the Internet, Android and iOS, Xbox 360 and some Samsung TVs and Blu-ray players when it debuts. Users will be allowed up to five registered devices. Although the GigaOM article noted that beta testers "are being told that they won't be able to access the DVDs included in their subscriptions at some kiosks until Dec. 17," Verizon CEO Lowell McAdam told investors Tuesday the service would launch commercially in the first quarter of 2013. For more:
- check out the Engadget update
- see the GigaOM article Related articles:
Verizon shifts top FiOS execs to Redbox Instant team
Redbox designs logo for streaming video venture with Verizon
Redbox eyes 'Redbox Instant' brand for streaming video service Article updated Dec. 4 to include note about Redbox Instant changed release date. Read more about: Verizon, ios
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Time Inc. has consolidated its video production activities into a new unit tasked with developing more online video related to its magazine titles at a higher quality. The move includes the appointment of J.R. McCabe into the new role of senior VP of video. McCabe joined Time after a stint as VP-chief video officer at Meredith Corp.  | Time Inc. CEO Laura Lang
Image source: Time Inc. | The new plan is to make Time's print content into online video for an audience that is moving away from reading. "It's an important strategic focus for the company as consumers increasingly seek web video as a format to inform, entertain and share among their friends," Time CEO Laura Lang wrote in a memo to employees covered by Advertising Age. According to the memo, the goal is to help the company's magazine brands, People, Fortune, Sports Illustrated, Time and InStyle, among others, "play an important role in that experience." The move will affect about 20 employees who have been working in video production across those brands. "We also believe video provides an opportunity to engage with advertisers in creative new ways that fulfill a current demand from the ad marketplace," Lang's memo continued. Advertising, of course, is at the foundation of any such move, and Time has put its advertising ducks in order already with a new digital ad unit that "pairs its magazines' content with marketers' messages," the Advertising Age story said. The increased emphasis on digital is no surprise coming from Lang, who joined the company in January after working with Digitas. For more:
- Advertising Age reported this story Related articles:
AP, local news networks eye online video networks
Google Play launches free trial option for in-app subscriptions Read more about: online video
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Mexican online premium and on-demand video entertainment provider Totalmovie has announced plans to launch an Internet-based live television service in 2013 that it will make available to consumers using Web- and Internet-connected devices like TVs, smartphones, tablets, streaming players and video consoles. The Grupo Salinas company is in the process of signing up distribution partners to "expedite the rollout of its over-the-top service in major emerging markets worldwide," the service provider said in a press release. Initial partners include RACSA in Central America and Iusacell in Mexico. In addition to the new service, Totalmovie and Sony are partnering up in a deal where Sony will offer a pre-loaded Totalmovie application on its connected TVs, Playstation 3 consoles, Blu-ray players and home theater products throughout Latin America, effective immediately in Mexico, Brazil and 20 other countries. The deal offers consumers unlimited access to the Totalmovie catalog of Hollywood movies and television series for a $7.99 monthly subscription. It is "a winning formula for us, as we expand the horizon of fun and entertainment options for the consumer," Takayuki Suzuki, president of Sony Mexico, said in the press release. For more:
- Totalmovie and Sony issued this press release Related articles:
Sony lures developers to PlayStation Mobile
America Movil takes over Latin American TV market lead from Read more about: Brazil, Totalmovie
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