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2013/04/10

| 04.10.13 | Boxee rebrands as DVR service; content snacking OK with Sony's Berger

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FierceOnlineVideo

April 10, 2013

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This week's sponsors:
Yorktel
Ooyala, Verimatrix, Irdeto and IneoQuest
Kaltura and Akamai

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Today's Top Stories:
1. Boxee rebrands again; new device called Boxee Cloud DVR
2. German firm ready to put on high-speed broadband light show
3. NPD: Second-screen apps getting scant use
4. Peter Chernin offers $500M for Hulu
5. Ooyala: Viewers prefer live video over VOD

Spotlight:
NAB coverage from Las Vegas

Also Noted:
Online viewing closes in on TV; Netflix improves Windows phone support Much more...

On the Hot Seat:
Sony's Berger: 30% of Crackle users don't pay for TV

News From The Fierce Network:
1. Ericsson buys Microsoft's Mediaroom IPTV unit
2. Magine cloud TV service aims to disrupt European market
3. 'Zero TV' trend heightens as industry gathers at NAB
4. More headlines...

Special report: The battle for union contracts
Negotiations between the large U.S.-based telcos and their wireline unions--the Communications Workers of America (CWA) and the International Brotherhood of Electrical Workers (IBEW)--continue to be a major storyline in the wireline side of telecom. As the major telcos have been migrating towards IP-based services and their legacy wireline voice service revenues have declined, it has cut into revenues that would be used to pay for union health and retirement benefits. Check out our new feature

Follow us on Twitter Follow @FierceOnlineVideo on Twitter!



This week's sponsor is Yorktel.

Webinar: Videoconferencing security
April 11, 2 pm ET/ 11 am PT

Videoconferencing presents security challenges that differ from traditional communications and data security methods that rely on firewalls and user authentication. These challenges can expose sensitive confidential data and communications to multiple vulnerabilities. The webcast will discuss videoconferencing security risks as well as solutions. Register Today.


Sponsor: Kaltura and Akamai

Webinars

> Videoconferencing security - April 11, 2 pm ET/ 11 am PT
> CorporateTube - The Next Step for Enterprise Success- Thursday, April 18th, 2pm ET/ 11am PT

Events

> Competitive Carriers Global Expo - April 17-19 - New Orleans
> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Marketplace

> eBook: Smarter Service: The Contract Center of the Future
> eBook: How to Get a Return on Knowledge in a Big Data World
> Whitepaper: VoLTE: Why, When and How?
> Research: How to Unlock Knowledge from Big, Unstructured Data to Improve Customer Service
> eBook: Advanced Advertising Revenue Set to Soar
> Whitepaper: Cisco Small Cell Solution: Reduce Costs, Improve Coverage

Jobs

> Instructional Developer II - Denver, CO - Cricket Communications
> Need a job? Need to hire? Visit FierceWirelessJobs

This week's sponsors are : Ooyala, Verimatrix, Irdeto and IneoQuest.

eBook: TV Everywhere Gets Personal

FierceCable discusses the latest technologies TV networks and content owners use to drive increased ratings and revenue from various video devices. Download for free today.

Today's Top Stories

1. Boxee rebrands again; new device called Boxee Cloud DVR

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

Boxee has apparently changed its marketing focus again, killing its Boxee TV brand and renaming it Boxee Cloud DVR. On top of that, Boxee added a free service tier and seems to have backed off some of the more strident cord-cutting advocacy that had driven the product's previous marketing.

The product still combines live TV and cloud DVR functionality for apps like Netflix (Nasdaq: NFLX), a GigaOM story said, but the new Boxee Cloud DVR "comes with a limited free service tier."

Boxee also seems to be softening its stance on over-the-top devices and cord cutting, which was part of an initial Boxee TV pitch last fall.

"On its newly-launched website, Boxee instead compares the device to TiVos and cable DVRs, touting unlimited storage and not free broadcast content as the key differentiator," wrote Janko Roettgers, noting that this probably has a lot to do with Boxee's need for content from cable companies such as Comcast (Nasdaq: CMCSA).

The new device name more accurately reflects the device's functionality as a DVR rather than a TV device, Boxee Communications VP of communications Andrew Kippen told the publication. It will now offer unlimited storage for TV recordings in the cloud, unlimited playback and the ability to view recordings on connected devices for $10 a month. The free service includes five hours of DVR playback a month.

There is still a free test period because the service is in beta, the story continued.

While not exactly a concession to pay TV providers, Boxee's new approach is certainly less combative than the one taken by Aereo, which is literally at war in the courts with broadcasters and content owners--many of whom are connected to cable companies.

For more:
GigaOM had this story

Related articles:
Aereo wins another round against broadcasters
Wal-Mart woos cable cord cutters with $99 Boxee TV
'Pay TV refugees' seen populating 13% of U.S. broadband households

Read more about: Boxee TV, Boxee DVR
back to top


This week's sponsor is Kaltura.

Webinar: CorporateTube - The Next Step for Enterprise Success
Thursday, April 18th, 2pm ET/ 11am PT

Learn from an elaborate case study and see how leading companies implemented this cutting edge solution to reap the benefits of video in the enterprise. Experts from Oracle, Akamai, and Kaltura will explain the many possibilities of deploying a CorporateTube for your organization. Register Today!


2. German firm ready to put on high-speed broadband light show

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

A German firm, Fraunhofer Heinrich Hertz Institute (HHI), claims it can squeeze data throughput rates of up to 3 Gbps from "off the shelf LED room lights," offering up a new medium for delivering broadband in places where radio transmissions can be problematic.

In a press release, HHI pointed to "[d]evelopment of novel components for data transmission over LEDs" as the reason why "significantly higher bandwidth can now be used in real-time." The company said it would present the new components starting today at Fiber Optics Expo (FOE) 2013.

While still in the laboratory phase, the new technology shows promise in the emerging field of using light to transmit data.

"Data rates of up to 800 Mbps were reached by this optical WLAN under laboratory conditions, while a complete real-time system exhibited at trade fairs reached data throughput of 500 Mbps," the company's press release said.

And that's just the start. Newly patented components "have now achieved a transmission rate in laboratory experiments of over 1 Gbps per single light frequency" which means off-the-shelf LEDs, which use three light frequencies, can achieve 3 Gbps, the company said.

The company, which develops mobile and fixed communications networks and multimedia systems, suggested the new LED components will have use in car-to-X communication as well as hospital operating theaters "where safety is at a premium," trade shows and factory halls where radio communications are problematic at best.

All together, the new development "represents a major step forward towards optical high-speed WLAN," the company concluded.

For more:
- HHI issued this press release

Related articles:
FCC charges ahead with 5 GHz Wi-Fi spectrum plan
Growing WLAN demand sets stage for 802.11ac shipments

Read more about: data transmission over LEDs, ceiling lamp
back to top


3. NPD: Second-screen apps getting scant use

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

Despite the best efforts of broadcasters and content providers, TV viewers with second-screen capabilities are not especially keen on using the devices to interact directly with apps that accompany TV programs they're watching, the latest research from The NPD Group indicates.

"Viewers are interested in searching to find further information about TV shows they are watching, but they are not using games and other immersive applications created as a component of the programming," Russ Crupnick, senior vice president of industry analysis at NPD, said in a press release. "This situation creates a potential diversion from advertising, and it will take a combined effort from content owners, advertisers, broadcasters, and others to present an aligned second-screen experience that will appeal to viewers."

The research confirmed that devices capable of receiving second-screen apps are popular, noting that 88 percent of U.S. households own at least one device and 87 percent of U.S. "entertainment consumers" said they use at least one second-screen device while watching television. The most popular devices are PCs (60 percent), smartphones (55 percent) and tablets (49 percent).

The problem--at least for content providers and advertisers who are counting on a more immersive second-screen application--is that the second screen use is somewhat limited. Viewers apparently interact directly with IMDb, Wikipedia and social networks rather than going through apps like Viggle and zeebox that have been designed specifically for the second-screen experience.

While apps like play-along games, check-in rewards and live voting are "highly effective for the minority of second-screen viewers," they "do not resound with most," the researchers said.

There is some hope for advertisers, however. Shopping for a product seen in a TV commercial is attractive to viewers in the demographic aged 35 to 49, the research said.

"Converting viewers into impulse shoppers has big potential impact for advertisers, who can leverage second screens to further connect with consumers watching TV," Crupnick concluded.

For more:
- The NPD Group issued this press release

Related articles:
Fox: Second-screen apps are 'here to stay'
Parks: Most Americans want YouTube in pay TV package

Read more about: npd, Zeebox
back to top


4. Peter Chernin offers $500M for Hulu

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

Peter Chernin, who, as president of News Corp. (Nasdaq: NWSA) was on hand at the birth of Hulu in 2007, now wants to become more involved in the juvenile service and is willing to put up $500 million to do so.

According to a Reuters story, Chernin is the most public of perhaps multiple buyers who would like to take control of the company from active partners Walt Disney Co. (NYSE: DIS) and News Corp. and inactive partner--thanks to regulatory restrictions--Comcast (Nasdaq: CMCSA), via its NBCUniversal unit. Bidding (if Hulu is actually for sale) is private, the story said.

Chernin certainly has a history with Hulu. Before leaving News Corp. in 2009 to form The Chernin Group, a media holding company with holdings across film and TV production and stakes in high tech companies like Pandora Media, he was an active participant in the formation of the service that offers both free and subscription access to new and old television shows online.

Another investor, Providence Equity Partners, sold its 10 percent stake in Hulu last November for $200 million.

Hulu reportedly has 3 million subscribers and generates about $700 million in revenue per year. Its active owners have been said to be pondering a sale while also looking at different business models under which it could be run, but nothing is official. It's not a new tactic; the service was offered for sale in 2011 but those bids were rejected.

Chernin spokesman Charles Sipkins, Hulu spokeswoman Elisa Schreiber and News Corp. spokesman Dan Berger had no comment for Reuters.

For more:
- Reuters carried this story

Related articles:
Hulu owners back away from selling service
Disney, News Corp. reportedly meet to discuss possible sale of Hulu
Hulu still a baby, but posting grown-up stats

Read more about: Chernin, Hulu
back to top


5. Ooyala: Viewers prefer live video over VOD

By Jim Barthold Comment | Forward | Twitter | Facebook | LinkedIn

The increasing use of connected devices is skewing the way people access content, when they access that content and, in the end, what content they access, according to a special edition Global Video Index report issued by Ooyala.

Among the findings of the report, described by the researchers as a "snapshot, taken in March 2013," is that viewers tune into live video 2.5 times longer than VOD on broadcast and entertainment networks.

Prime online viewing hours are also outside the typical primetime TV framework, with online broadcasts drawing the most attention at noon on weekdays and 9 p.m. on weekends and tablet viewing spiking on weekends, when viewers "spend twice as much time watching video from broadcasters online," an Ooyala press release stated.

"For broadcasters that rely on video to drive their business, insights--like where people are watching, for how long, on what device--drive their programming and monetization strategies," Ooyala CEO Jay Fulcher said in the press release. "If their strategy is off they lose money, or if they're lucky, just leave money on the table. Simply put, data-driven insights yield better content, better programming and will help companies make more money."

If the March snapshot is correct, broadcasters placing content online should also note that videos longer than 10 minutes in length accounted for more than 75 percent of time watching mobile video and "[n]early half of all tablet video consumption was with video at least 30 minutes in length," the press release summarized.

For more:
- Ooyala issued this press release

Related articles:
Report says tablet, mobile video viewing doubled in 2012; youth prefer laptops to TV
Ooyala: Tablet owners really into watching video

Read more about: online viewing, Vod
back to top


Also Noted

TODAY'S SPOTLIGHT... NAB coverage from Las Vegas

The annual National Association of Broadcasters show is this week, and Fierce's Sue Marek and Steve Donohue are covering the action live in Las Vegas. Topics include possible a la carte video pricing, online video "power users" and the amount of Verizon's wireless traffic attributed to video (hint: it's no small piece of the pie). Check out our continued coverage here

More online video news bytes from around the World Wide Web...

> People are starting to spend nearly as much time watching video online as they are watching television, according to a report from the Temkin Group. Story

> Netflix has released an update for its Windows Phone 8 app that offers full-screen support for 720p playback. Story

> Those looking to get an Apple TV better have deep pockets, since the device could come with a $2,500 price tag. Story

> AOL is partnering to put video content from the Publishing Group of America (PGOA) onto the AOL On Network. Press release

> Firms are lining up for a huge customer base--800 million mobile connections--for online TV services in India. Story

> Rovi used NAB2013 in Las Vegas to unveil an end-to-end high-quality multiscreen video solution. Story

Telecom News

> TDS Telecom has begun building two more of its American Recovery and Reinvestment Act (ARRA) broadband stimulus projects in Kentucky and Mississippi, bringing broadband services to nearly 1,200 users. Read the full article here

And finally… since you have to have money to buy a broadband-connected device and broadband service, it makes sense that luxury brands like Prada and Kering are turning to online video to market their services. Story

News From The Fierce Network:

> Gartner: Sprint's MPLS, Ethernet expansions advance its standing Post

On the Hot Seat

Sony's Berger: 30% of Crackle users don't pay for TV

By Mariko Hewer Comment | Forward | Twitter | Facebook | LinkedIn

with Eric Berger, Executive Vice President of Digital Networks at Sony Pictures

Berger (Image source: Sony)

Eric Berger joined Sony in 2006 as vice president of mobile entertainment and since then has taken over management of the company's multiplatform video entertainment network, Crackle, after being named to his current position. Berger also plays a key role in managing ad-supported digital businesses and partnerships with companies including YouTube and Hulu. FierceOnlineVideo's Mariko Hewer caught up with Berger on "content snacking," Crackle's business model and the typical Crackle user.

FierceOnlineVideo: Philip Lynch, senior vice president of digital networks and games of Sony Pictures and Crackle, spoke about "content snacking" at OTTCON. When did you start seeing it happen, and what are you doing to promote it?

Eric Berger: People use the word "snacking" differently. Some people use it for short form; what he's talking about is long-form content being popular on mobile devices. We've been big believers for a long period of time that people are interested in watching full-length movies and full-length TV shows on their smartphones and tablets. What we do see sometimes is that they will come in and watch part of that show and then they can pause and resume and watch more of that show at a later period of time, either on that device or on another device. They have the ability to chip away at a long-form piece of content. The misconception in the marketplace is that people only want to look at short-form clips or episodes on a mobile phone.

FierceOnlineVideo: Can you talk about your mobile channel specifically? Do you have any usage or customer numbers to report? How do you see the mobile channel evolving this year?

Eric Berger: We've had about 15 million downloads of our mobile applications so far, and it's really growing quite rapidly; we're very pleased with it. We're on iOS and Android; we're also on Windows Mobile; we also have a custom app for the Kindle and a custom app for the Nook. So it's an area that we believe in strongly and that is growing quite quickly. Another thing that's very interesting for us is not just mobile as second-screen application but two screens working together. We've had airplay functionality for some time on our iOS apps so people can pull up and navigate the content they want on our mobile application but see it on their large-screen TV.

FierceOnlineVideo: Can you talk about Crackle metrics like users or revenues?

Eric Berger: What I can tell you is we have a nice split across all platforms, which is key for us. The whole connected TV space is a very big piece of the pie and growing for us. We have about 12 million uniques for Crackle overall, and almost half of that is on connected devices, and that's a really big growth area for us. So on the connected devices it's not only the mobile and tablet, but in the TV space it includes game consoles like the Playstation and the Xbox, streaming boxes like the Roku, and smart TVs which include Samsung, LG, Toshiba, Vizio and the Sony Bravia.

FierceOnlineVideo: Who is the typical Crackle user?

Eric Berger: Our target is men 18 to 34. What's different about Crackle versus some other video services in the marketplace is that it is much more like a network, meaning it is targeted and programmed to that demographic like you would see in a traditional network. This is a cohort of people that obviously over-index on the use of electronics, they're very well-educated, they're in higher income brackets, they have a higher propensity to have and use game consoles, and so it's an attractive audience from an advertising perspective.

FierceOnlineVideo: Crackle offers several TV series, such as Seinfeld and The Three Stooges, on its platform. Why would a U.S. viewer use Crackle to watch one of those shows instead of watching it on TBS or a TV station that airs the program in syndication?

Eric Berger: It's a couple things. First of all, it's all on demand, and it's on all devices without any sort of authentication. So if you're a pay TV service provider, you can't get everything anytime and anywhere. Increasingly you'll see people authenticate in with their cable or satellite provider onto select devices, but not everything is available and not everyone is there right now. The content that Crackle [offers] is anytime and anywhere. There also [is] a lot of content that is digitally only available on Crackle on these connected devices… Seinfeld right now is only available on Crackle in a way that is unauthenticated. [For original content], we have a show called "Chosen"… that show launched in January and was very successful and we just announced a new season. Another example would be Jerry Seinfeld's "Comedians and Cars Getting Coffee." We did 10 episodes of that show last summer and fall, and again, due to the success of that show we've just announced 24 new episodes. Read the rest of our Hot Seat here

Read more about: PlayStation 3, Ad-supported content

Webinars

> Videoconferencing security - April 11, 2 pm ET/ 11 am PT

Videoconferencing presents security challenges that differ from traditional communications and data security methods that rely on firewalls and user authentication. The webcast will discuss videoconferencing security risks as well as solutions. Register Today.

> CorporateTube - The Next Step for Enterprise Success- Thursday, April 18th, 2pm ET/ 11am PT

Learn from an elaborate case study and see how leading companies implemented this cutting edge solution to reap the benefits of video in the enterprise. Experts from Oracle, Akamai, and Kaltura will explain the many possibilities of deploying a CorporateTube for your organization. Register Today!

Events

> Competitive Carriers Global Expo - April 17-19 - New Orleans

CCA is the premier trade show and conference for the competitive mobile ecosystem and brings together decision-makers for networking, learning and sharing best practices. CCA is the nation's leading association for competitive wireless providers. To register www.ccaevents.org.

> Fierce Innovation Awards 2012 Live Announcement of this Year's Winners - Now Available On-Demand

Please join Jason Nelson, Publisher of FierceWireless, FierceTelecom, and FierceCable as we announce the winners of the Fierce Innovation Awards 2012. Click here to RSVP today.

Marketplace

> eBook: Smarter Service: The Contract Center of the Future

This eBook explores the challenges facing traditional contact centers and the benefits of deploying the contact center of the future. You'll find links to further resources on the final page. Download today.

> eBook: How to Get a Return on Knowledge in a Big Data World

Learn how to get put your organization's collective knowledge in the hands of your service reps using advanced enterprise search technology - and watch your service performance improve and customer satisfaction soar. Download Now For Free!

> Whitepaper: VoLTE: Why, When and How?

This whitepaper will argue that VoLTE creates a significant opportunity for operators, but warns that the evolution from existing voice services will place before them a number of serious challenges. Read More.

> Research: How to Unlock Knowledge from Big, Unstructured Data to Improve Customer Service

Learn how to unlock knowledge trapped in silos and systems and read how advanced enterprise search technology can put your organization's collective knowledge in the hands of your service reps. Watch your service performance improve and customer satisfaction soar. Download Now!

> eBook: Advanced Advertising Revenue Set to Soar

Despite expanding advertising options, cable spots still remain the most popular. This eBook explores the growth and potential of new ad platforms, citing specific real-world examples. Download for free today.

> Whitepaper: Cisco Small Cell Solution: Reduce Costs, Improve Coverage

Address the challenge of mobile service coverage and expand network capacity with the Cisco Licensed Small Cell Solution. Using small cells, service providers extend voice and data services to mobile subscribers while offloading traffic. Read this whitepaper today.

Jobs

> Instructional Developer II - Denver, CO - Cricket Communications

Cricket Communications, a subsidiary of Leap Wireless, is the pioneer and leader in delivering innovative value-rich prepaid wireless with no long-term contracts. Responsibilities include developing eLearning content and managing all training rollouts. 5 years' experience in eLearning and training content development required. Telecommunications experience preferred...Learn More.

> Need a job? Need to hire? Visit FierceWirelessJobs

Announcing FierceWirelessJobs, the new FierceMarkets careers site. Find the perfect job or post your openings at http://www.fiercewireless.com/jobs.


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