Author: Janko Roettgers

  • Netflix CEO: password sharing is not a big deal

    Netflix CEO Reed Hastings isn’t all too worried about people sharing their passwords with strangers. “We really don’t think that there is much going on of the ‘I’m going to share my password with a marginal acquaintance,’” Hastings said during the company’s Q1 2013 earnings call.

    Hastings was asked about password sharing after Wedbush Securities analyst Michael Pachter had estimated in a Bloomberg story from Monday that as many as 10 million people may be watching Netflix without paying, suggesting that the company may start to crack down on the practice.

    Hastings said that sharing passwords with extended family members is “not what we would consider appropriate,” but he added that most of the account sharing would happen within the immediate family — something that Netflix wants to make easier with the introduction of both personalized profiles as well as a more expensive family plan.

    Personalized profiles that will allow family members to maintain separate queues and get more personal recommendations will launch internationally within the coming months, the company announced Monday. Netflix has been testing these personalized profiles since the beginning of the year, and Hastings said Monday that the response has been positive. “The key use case is between kids and parents,” he explained, adding that parents have told the company in the past that their experience is suboptimal.

    The company also announced Monday that it will launch a new $12 a month family plan that will allow users to stream up to four devices at a time, as opposed to the current two-device streaming limit. However, the company doesn’t expect a huge response to this offering, with Hastings saying Monday that he expect fewer than one percent of subscribers to jump on the offering.

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • The House of Cards effect: Netflix tops $1B in revenue in Q1, closes in on 30M U.S. subscribers

    Looks like House of Cards has been working for Netflix: The streaming service made more than $1 billion in revenue for the first time in its corporate history in Q1 of 2013, according financial results published Monday. And with solid subscriber additions, Netflix is also on target to hit 30 million subscribers in the U.S. this quarter.

    Revenue rose to $1.024  billion in Q1, compared to $889 million in Q1 of 2012. The company added 2.03 million domestic subscribers now has 29.17 million subscribers in the U.S., compared to 23.41 million in Q1 2012. Internationally, Netflix added 1.02 million subscribers, which brings the total number of subscribers outside the U.S. to 7.04 million, compared to 3.07 million a year ago.

     

    Developing story, more to come.

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • Rhapsody exec: splashy ads and free streaming promotions don’t work

    How do you convince people that they don’t need to own music anymore? That’s a question that streaming music services have been struggling with for years. Both Spotify and Rdio have been ramping up their ad spending in recent months to attract more subscribers to their respective services — but they’re doing it all wrong, says Rhapsody VP Product and Content Jon Maples.

    Rhapsody has been offering music subscriptions since 2001, much than any of its competitors, and Maples said in a blog post Monday that the company has made many of the same mistakes that he believes Spotify and Rdio are repeating now. One lesson Rhapsody learned the hard way is that ads for a music subscription service should be about the service, not artists or emotional connections:

    “We tried the emotional connection to music with our Droga5-produced bubbles ad early on. The ad featured a woman who dove off a building into a bubble that immersed her into music. She dove into another bubble, and the music changed. Nice idea. Hard to understand in terms of product. Or value proposition. Or pretty much anything outside of diving off high rises, which we neither condone nor recommend.”

    In case you’re curious, here is the Rhapsody ad in question:

    Compare that to this much less artsy Rhapsody ad, which performed much better, according to Maples:

    And here’s one of the ads Spotify is running right now:

    But Maples didn’t just criticize his competitors’ ads. He also voiced some doubts about the benefits of giving away free music to promote subscription services. In particular, he took issue with a promotional campaign run by Rdio, in which the company secured exclusive content to stream for free on Rdio.com. Guesstimating the conversion rate for that promotion, he concluded:

    “Rdio and Rhapsody are in the business of sourcing, identifying and enticing fans who are willing to pay for music. How you go about that is the hard part. My belief is that streaming companies have to sell the value of a music service and the benefits to customers instead of relying on an emotional connection to music, giving songs away or buying exclusive rights to a band’s new release.”

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • Vubooo’s take on the second screen: Less talk, more gooooooals

    Ever found yourself at the edge of your seat during a soccer game, ready to yell at the TV at a moment’s notice? Then you might be a prime candidate for Vubooo, a new second-screen app that specifically targets soccer fans. Vubooo’s app has been available on Google Play for some time, but its new iOS app just found its way to the App Store Monday, in time for this week’s UEFA Champions League semifinal matches.

    vubooo screenshotHere’s what’s interesting about Vubooo: It does away with a lot of the notions of second-screen apps, and tries to reinvent the whole experience for soccer fans. You won’t get any badges for tuning into a game, the app won’t distract you with any trivia content while the game is going on, and there definitely won’t be any long-winded discussions about the happenings on the field.

    Instead, fans have a chance to predict the outcome of a game, and then simply cheer and boo as the action unfolds on the field. A few simple buttons also allow users to demand players be carded, spot offside violations and do a whole lot of virtual shouting. All of that action gets documented on a timeline that progresses as the game unfolds, giving users a chance to later on go back and see what exactly happened in that fateful 67th minute.

    I have to admit that, despite my German heritage, I’m only a soccer fan every four years (there’s nothing just like the World Cup). And even then, I might just leave the second screen in my pocket and instead follow the action without any distraction. However, Vubooo does deserve some credit for a new take on second-screen interaction. Also, the folks over on Google Play seem to love the app, so the Israel-based startup may just be onto something.

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • Intel’s TV project loses key exec months before going to market

    Intel Media, the chip giant’s ambitious attempt to reinvent pay TV, has lost a key executive just months before going to market. Jim Baldwin, who was working as VP of Engineering for Intel Media, has left the company.

    jim-baldwin_1

    Jim Baldwin was Intel Media’s VP of Engineering until his departure in April.

    An Intel Media spokesperson confirmed this when contacted by GigaOM, saying that “Baldwin left Intel Media to pursue opportunities outside the company.” Baldwin’s Linkedin profile put the change a bit more bluntly, listing “retired” as his current job. Intel Media’s spokesperson didn’t have any further comment on the circumstances of his departure, and Baldwin didn’t respond to a request for comment.

    Baldwin came to Intel from Microsoft, where he served as CTO for the Interactive Entertainment Business unit as well as Engineering Director for Microsoft’s Mediaroom business. A recent job offer for Intel Media included this tidbit about Baldwin’s bio:

    “Jim joined Microsoft in 1997 as a part of the WebTV acquisition, Jim has been a key architect of digital video technology for various products including the WebTV Plus, Echostar Dishplayer, DirecTV UltimateTV and Microsoft TV. ”

    No matter the circumstances, losing a key exec during the last stretch of the race can’t be good news for Intel Media. The project is currently running a private test in three markets, and Intel Media boss Erik Huggers said in February that the service will be available to consumers before the end of the year. Intel’s spokesperson had this to say about the impact of the departure: “He will be missed, but we have a very strong engineering organization in place with a deep leadership bench.”

    Intel Media wants to offer consumers a TV subscription service over the internet, complete with a catch-up feature that will allow viewers to go back and view anything that has aired on any channel within a given time frame. Consumers will be able to access the service through an Intel-made set-top box as well as through tablets and other devices.

    Huggers said in February that the service will be marketed under a separate brand that hasn’t been revealed yet. However, I recently found some clues suggesting that the new branding will be tied to Intel’s legacy brand with the tagline “Intel inside & out.”

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • Next up for Google TV: An NBC app with full, free episodes?

    Google TV has long lacked one key feature: Free or fixed-price access to full episodes of shows the day after they air on TV. There is no Hulu Plus app for Google TV devices, and all the big broadcasters block the Google TV browser from accessing content on their websites.

    But it looks like this may change soon: Google TV owners who visited NBC.com with the connected device have in recent days discovered a new splash screen, promising that “full episodes of this and other shows are now available for free” on Google TV.

    The splash screen redirects Google TV users to Google Play, where the app is reportedly already being made available. However, users are reporting that it wasn’t listed as compatible with any of their Google TV devices — likely a precaution to prevent users from installing it on anything by development devices before it is officially announced.

    The app also isn’t included in Google Play search results yet. But it seems like such an announcement could be imminent, given that the app and splash screen are already in place.

    However, cord cutters in search for an easy way to watch NBC content for free on their TV shouldn’t get their hopes up too soon. It’s likely that NBC’s Google TV app is going to require authentication, meaning that users will have to log in with their pay TV credentials in order to watch. (One should note that Google TV owners have had the option to buy individual episodes of TV shows for some time.)

    Google and NBC didn’t immediately respond when asked for comment for this article.

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • The Atlantic is going to launch a paid content offering soon

    The Atlantic Magazine has long resisted the idea of a paywall, but Atlantic Media President Justin Smith revealed at GigaOM’s paidContent Live 2013 conference in New York Wednesday that the company is about to launch a paid product within the next two or three weeks.

    Smith didn’t go into many details about the nature of the offering, but he made it clear that the company had no choice but to try every kind of monetization. “To say the ad model is gonna win over the pay model is foolish,” Smith said. The key would be to unlock multiple revenue streams, not to just put all your eggs in one basket.

    Smith got some support for that notion from fellow panelist Raju Narisetti, senior vice president and deputy head of strategy at News Corp. Narisetti’s company may be seen as one of the driving forces behind paywalls, but he stressed Wednesday that News Corp. actually has been experimenting with lots of different options, ranging from tight paywalls for the Times all the way to free sites like All Things Digital. But he also defended paywalls against criticism, saying that newspapers were “courageous” for taking the step to charge for their content. “We have a lot of faith in our journalism,” he argued, including in the notion that people would pay for this kind of content.

    Bob Bowman, President and CEO, MLB Advanced Media, strongly voiced support for this perspective. “Any publication out there should have a paid content product,” he said, arguing that all publications have avid fans that are willing to pay for content He asked, “Who are you to say: ‘we don’t want your money?’”

    Of course, asking for money doesn’t always need to involve paywalls. That was a point driven home by ProPublica President, Richard Tofel, who revealed Wednesday that his nonprofit organization has received donations from 2,300 supporters last year, with 100 of the contributing on “quite significant levels.”

    His prediction for monetizing and sustaining journalism? “Every major city in this country has a symphony,” Tofel said. Eventually, cultural institutions like symphony orchestras, libraries and museums would be complemented by nonprofit press institutions. Having nonprofit press is essential for many areas that can’t be covered by traditional media organizations anymore, he argued, whether those have a paywall or not.

    Check out the rest of our paidContent Live 2013 coverage here, and a video embed of the session follows below:


    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • The Young Turks is about to become the first news channel with a billion views on YouTube

    Beyonce, Bieber and… The Young Turks? Cenk Uygur’s liberal online video network is set to become the first news outlet to score a billion views on YouTube this week. For Uygur, that’s proof that online video isn’t just a novelty anymore, but a primary source of information for a whole generation. “They grew up on YouTube. That is their TV,” he told me during an interview last week.

    Uygur has been doing political commentary online since 2005, but also brought his brand to traditional media, appearing first on MSNBC and then Current. Asked about the secret for hitting a billion views, he told me it’s partially because other media organizations have long underestimated YouTube and online video in general. “We have been really lucky that this field has been left alone to us for so long,” he said.

    The Young Turks were one of the news organizations tapped by Google for YouTube’s original content push, which included sizeable advances to bring more professionally produced content to the site. Traditional news organizations like Reuters struggled to find an audience for content funded by these kinds of advances on the site, but Uygur told me that the collaboration with YouTube was a full success for his company. “We were the first channel to get refunded,” he said.

    In the coming months, he plans to continue that growth story by adding additional shows, but he also hinted at further TV collaborations, including production work for TV networks and additional platforms for his existing shows.

    So what’s Uygur’s advice for news organizations that have a hard time with online video? “There is one trick: It’s to be authentic,” he told me. Having an authentic voice is the only way to speak to a generation that has grown up with YouTube, he argued, adding: “To them, TV now equals fake. And online equals real.”

    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

        

  • 65 percent of Buzzfeed’s traffic now comes from mobile devices

    Buzzfeed now sees 65 percent of its traffic coming from mobile devices, according to Kenneth Lerer, chairman of Buzzfeed and Betaworks. “Everything is going to the phone,” Lerer said at GigaOM’s paidContent Live 2013 conference in New York Wednesday.

    Lerer co-founded the Huffington Post and now serves as managing director at Lerer Ventures. “It’s the best time in the last eight years to invest in digital content companies,” he said. With the technology for the web as well as mobile having been more or less built out, it’s now time to fill those pipes, he argued. “Content is king at a certain time. And I think content is king now.”

    However, Lerer also cautioned that digital media investments are risky, with timing being everything. “If you’re too early, you lose all your money. If you’re too late, you don’t make any money,” he explained. And when you give cutting-edge companies seed money, it’s hard to predict how their business plans are going to pan out. “You have to kind of take the measure of the person,” he admitted.

    So what are the big trends Lerer is seeing in media, aside from a huge shift to mobile? Video will play a huge role going forward, but there’s also a more fundamental shift in how consumers look at media properties. In short, they ignore everything media execs hold dearly. Instead of expecting a curated front page, they’re much more comfortable with a social feed, Lerer said. “When they see a Buzzfeed – to them, it’s just normal,” he added.

    In the end, the companies that aren’t married to those old rules will prevail, Lerer argued: “I think the world is ending for traditional media companies, but it’s just beginning for digital media companies.”

    Check out the rest of our paidContent Live 2013 coverage here, and a video embed of the session follows below:


    Related research and analysis from GigaOM Pro:
    Subscriber content. Sign up for a free trial.

          

    • Like an MTV you’d actually enjoy: Shuffler.fm launches curated music video channels

      Amsterdam-based online music startup Shuffler.fm is venturing into the music video space with its new ShufflerTV offering that turns the web’s leading voices in music into your personal VJs.

      The idea behind ShufflerTV, which is set to officially launch Wednesday, is pretty simple: The site aggregates videos posted on music blogs and online music magazines like Pitchfork, XLR8R, Urb.com and the Fader, and compiles them to individual stations. The result are continuous streams of music videos that have been curated by people who actually know what they’re talking about.

      Shuffler.fm combines this with a really neat player that allows users to skip songs, check out what’s coming next, change stations, subscribe to specific stations to easily access them and share individual videos on Twitter, Facebook and Google+.

      ShufflerTV integrates with Shuffler.fm’s audio site, which has been doing this kind of curated music programming sans video for some time. Users can for example subscribe to a station like Urb.com on ShufflerTV, and then listen to the songs posted there as part of their personal RadioMagazine, which is kind of like a megamix of all the songs of their favorite audio and video surces.

      Shuffler isn’t the only one looking to offer a new take on music television online. Major label joint venture Vevo launched its own continuously playing music video station dubbed Vevo TV in March. However, Vevo is currently very much a take on the traditional MTV model, with a one-size-fits-all approach towards curation. ShufflerTV on the other hand comes with a much more targeted approach. Both has its merits. But if you ask me, Shuffler simply sounds better.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • This is why Apple wants to launch iRadio

      Apple is still dominating the digital download business, with eight out of ten digital music buyers getting their tracks from iTunes in the fourth quarter of 2012, according to new numbers released Tuesday by the NPD Group. Volume-wise, Apple sold 63 percent of all digital tracks in that quarter, followed by Amazon as a distant second with 22 percent. Apple wants to maintain that lead and keep its digital download biz healthy — and that’s why it’s looking to launch its own streaming service soon.

      iRadio, as the service has been called by some, will reportedly mimic the functionality of Pandora, offering users continuous streaming with limited interactivity. The company is negotiating directly with record labels as opposed to relying on the type of compulsory licenses that are at the core of Pandora’s business model. That means that Apple might offer its users slightly more functionality and fewer restrictions when it comes to music selection and song skipping.

      However, iRadio won’t offer on-demand streaming of complete albums like users have come to expect from full-blown music subscription services like Spotify and Rdio. That’s because the Spotify model directly competes with Apple’s music download business. Pandora, on the other hand, actually helps Apple sell more music.

      The NPD Group noted Tuesday that 38 percent of U.S. consumers still think it’s important to own their own music. However, among Pandora users, that number was even higher. Here’s how NPD put it in its press release:

      “Among consumers who listened to music on Pandora and other free music-streaming services, 41 percent reported that owning music was important to them; in fact, many free streamers attributed buying more downloads to their discovery on a radio or via an on-demand service.”

      The company didn’t make any data available about people who pay for a streaming subscription, but I wouldn’t be surprised to see significantly lower interest in music ownership amongst users who pay for unlimited access.

      That’s why it’s smart for Apple to invest in iRadio. The goal is not to kill Pandora, but to actually bring that type of radio service to more users, and keep them from switching to a full-blown access model. In other words: It’s not about Pandora, and all about Spotify.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • Comcast confirms: Yes, we’re encrypting basic cable now

      Comcast customers, get ready for yet another TV transition: The cable provider has started to alert its customers in some markets that it is about to encrypt their basic cable signals, forcing them to order a digital adapter if they want to continue to receive basic programming through the service. Comcast is making adapters available for free in select markets, and the company even has a model that works with third-party set-top boxes — but some users could still be left in the dark.

      Consumers who already use a Comcast-provided set-top box on all of their TV sets don’t have to worry, their service will continue to work as before. But if you have a TV in your den that’s hooked up to your cable outlet without a set-top box, then you’re going to have to get an adapter to keep it working.

      Comcast is contacting consumers ahead of the transition, offering them up to two digital TV adapters for free for two years. These adapters are small boxes that come with their own remote control and are connected to a TV set with a coaxial (antenna) cable. Remember the converter boxes that consumers had to buy to receive over-the-air digital TV on old TV sets? It kind of works like that, except the sole purpose of this device is to descramble Comcast’s cable signals.

      Comcast confirmed the move towards encrypted basic cable when contacted by GigaOM, and a spokesperson sent us the following statement via email:

      “We are beginning to proactively notify customers in select markets that we will begin to encrypt limited basic channels as now permitted by last year’s FCC B1 Encryption Order. While the vast majority of our customers won’t be impacted because they already have digital equipment connected to their TVs, we understand this will be a change for a small number of customers and will be making it as convenient as possible for them to get the digital equipment they may need to continue watching limited basic channels.”

      The company is also making a help page available online that goes into some of the details of the offering.

      Cable companies have long lobbied for the right to encrypt basic cable channels, arguing that this will prevent cable theft and simplify remote management of their equipment. They succeeded last year when the FCC ruled that they could start to encrypt basic cable, as long as they provide consumers with some help during the transition.

      The company also struck a separate agreement with Boxee to provide owners of the Boxee Cloud DVR with access to its encrypted basic feeds — and the new Boxee device also happens to be the first one that’s compatible with a new DLNA-based adapter that streams TV signals via an Ethernet connection.

      However, Comcast’s adapters won’t work with Boxee’s old live TV dongle, which the company introduced a little over a year ago to bring live TV to the original Boxee Box. Also left in the dark are customers who use any other kind of digital TV adapter for their PC that are based on coaxial inputs, like the Elgato EyeTV. The last resort for many of these consumers may just be to invest in an antenna.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • ReelSurfer targets media with newest take on video clipping

      Some of the best ideas come from people who don’t work for you: That’s a lesson startups learn time and again. Take ReelSurfer, for example. The Menlo Park, California-based video startup has been offering users an easy way to clip and share highlights of videos ever since it launched last summer, but is now courting media companies as well.

      A big part of that idea has been to target folks who don’t actually shoot their own videos. “The majority of people just consume content online,” ReelSurfer founder and CEO Neil Jogeklar said during an interview this week. ReelSurfer wanted to give these people tools to become creative and mash up their favorite videos to construct highlight reels or share their favorite moments.

      Reuters Play PageBut then something interesting happened: Reuters started using it to recut its own clips — and the team over at ReelSurfer felt like they were onto something. The startup started talking to the news organization, and learned that Reuters was just trying to find ways to optimize its footage for social sharing via Twitter and Facebook. “They’re competing for people with a short attention span for a short amount of time,” Jogeklar explained.

      ReelSurfer quizzed the folks over at Reuters about the challenges the news organization is facing and quickly learned that one of the biggest concerns was referral traffic. Fore example, when Reuters was sharing a YouTube video, people who click through were ending up on YouTube, not its own site.

      That’s why ReelSurfer gave Reuters the ability to easily add a destination URL to their clips. That sounds simple, but actually worked remarkably well: Videos shared by Reuters saw a click-trhough-rate of 13 percent, according to ReelSurfer. The company also added some extra SEO optimization, and shared video analytics with the news organization.

      After a few months of testing, ReelSurfer is now making some of these extra features available to other media organizations as well. The company just started its ReelSurfer for journalists program, which basically makes the functionality that Reuters has been using available to bloggers and other online journalists.

      ReelSurfer for journalists is currently still in private beta, and the company is working on building out a full-featured analytics dashboard for media organizations. There are definitely other options for this kind of use case out there as well — but ReelSurfer is definitely one of the easier solutions. Editing a clip with ReelSurfer just takes a minute or two. It’s hard to beat that, especially when you’re on a deadline.

      Check out this really short highlight I cut from one of our review videos, which will point you to the original review story:

      Photo courtesy of Flickr user transp.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • YouTube just got support for multiple admins per channel

      Content creators don’t need to share the password to their YouTube channel anymore to allow multiple team members to upload videos: The site just enabled a multi-account feature as part of its integration with Google+ that can be used to give up to 50 people admin access to a YouTube channel. Google+ users can also become admins of multiple channels, making it easier to switch between YouTube channels without signing out and in every single time.

      Channel owners simply need to connect their YouTube channel to a new or existing Google+ page, and then add their team members as managers to that page. Detailed instructions can be found in YouTube’s help section.

      The new feature was enabled as part of a closer integration with Google+, and is currently in a beta test. It also includes other integration features, including a YouTube tab on a linked Google+ page, and easier sharing from YouTube to Google+, and is part of Google’s larger efforts to bring Google+ integration to all of its products.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • Really, Microsoft? Your vision for the future of TV is… an HDMI cable?

      Microsoft is one of those companies that has a shot at changing TV. Instead, it’s betting on preserving the status quo, in a bad way:  Microsoft’s next Xbox is supposed to have deep integration with live TV programming, according to a report by the Verge’s Tom Warren, who wrote Wednesday that the game console will be able to overlay a programming guide and other UI elements over the feed coming from your cable box. Here’s Warren describing the details of this integration:

      “The functionality will work by taking a cable box signal and passing it through to the Xbox via HDMI, allowing Microsoft’s console to overlay a UI and features on top of an existing TV channel or set-top box.”

      Sounds familiar? That’s because the same kind of HDMI daisy-chaining has been used by Google TV devices ever since the launch of that platform in 2010. Microsoft’s approach supposedly goes a bit further, thanks to a cooperation with pay TV operators. The Verge article doesn’t go into details on what this exactly means, but one possible scenario could be that the Xbox controls basic set-top box functionality via Internet Protocol, meaning that the device will be able to switch the channels without the need for an IR blaster.

      Having that kind of overlay functionality can be neat, at least when it works. Consumers won’t have to switch inputs on their TVs anymore to switch from an Xbox game or a movie on Netflix to live television. And at this point, I’d take anything that Microsoft designs over the traditional cable guide.

      But let’s not fool ourselves: Plugging your cable box into your Xbox, and then connecting that box to your TV? That’s just a crummy hack, which points to all of what’s wrong with TV today.

      Cable boxes need to die, not another lifeline

      Everyone hates cable boxes. They’re hard to use, outdated pieces of technology. Heck, at this point, even cable TV operators would love to get rid of them and instead deliver video over IP. Oh, and by the way, your cable box can consume more electricity than your fridge.

      Microsoft would have been in a great position to replace the cable box. Get rid of that old, humming, power-hungry fridge and replace it with something leaner, to stay with the metaphor. Instead, its answer is to get you a second fridge. The next-generation Xbox is reported to be another always-on device, not only adding to your power bill but also making you wonder: why do you need two devices to watch the same content you used to watch with just one?

      This won’t work for cord cutters

      Yeah I know, cord cutters are a small minority, and will likely remain so for the foreseeable future. But if there’s a lesson to be learned from the struggles of Google TV, it’s that people don’t buy these kinds of devices to make cable look more fun. They want to replace cable with these devices.

      HDMI pass-through is the ultimate admission of defeat

      Just a few years ago, Microsoft had grand ambitions for the future of television. The company was looking to start its own virtual cable service which would have competed squarely with Comcast & Co., much in the same way Intel is looking to do now. There were even discussions to kickstart these efforts with some high-profile exclusive content. Apparently, Microsoft was considering A DEAL to bring Conan O’Brien exclusively to the Xbox.

      Fast forward to 2013, and Microsoft’s big idea for the future of television is an HDMI cable? It’s the ultimate admission of defeat, and it comes with a heavy price: Microsoft puts its integration of live TV feeds into its Xbox  at the mercy of cable operators, which could at any point in time break the integration and make your picture go black thanks to a sneaky little piece of copy-protection technology called HDCP.

      That means that Microsoft likely won’t dare to display ads on the second screen that don’t come with the blessing of your cable company. And don’t expect an Aereo app to come to Xbox any time soon either.

      Ultimately, Microsoft’s vision for TV is to make the TV devices and services you have today look better, and it’s using a cumbersome work-around to do so. Call that what you will, but it’s not innovation.

      Image courtesy of Flickr user digitpedia.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • Roku sells five million players in the U.S.

      Roku has sold a total of five million players in the U.S. since launching the first Roku box in 2008, the company announced Wednesday. Roku CEO Anthony Wood also said in a blog post that the company’s devices have delivered a total of 8 billion streams so far, and that one out of four Roku players now streams more than 35 hours to TVs — a pretty impressive number, considering that the average U.S. consumer watches 33 hours of traditional TV a week, according to Nielsen.

      Wood told me in early 2012 that his company had sold 2.5 million players by the end of 2011, which was below its own forecast. It looks like sales have picked up since then, with Roku customers buying another 2.5 million players in just 16 months. Just as a frame of reference: Apple sold two million Apple TVs during last year’s holiday quarter, and has sold more than 10 million total since the device was introduced.

      Roku has invested heavily in advertising for its products to keep up with the market leader, and has raised around $67 million to finance its ad blitz.

      The company has also made advancements to its product line: Roku recently launched its 3rd generation Roku player, and the company also started to partner with TV makers to bundle its MHL-based Roku stick with TV sets that don’t use an integrated smart TV platform.

      Take a look at our Roku 3 review below:

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • RemotePlay launches iOS app for cross-platform media sharing

      RemotePlay, the media sharing app that lets you send documents, photos or videos to anyone with a mobile device within the same network, plans to release an iOS version Wednesday that makes it possible to share media between Android devices, iPhones and iPads.

      Users of the iOS app can import media from iTunes, or access content shared by other apps, including Dropbox and Google Drive. I had a chance to try a pre-release version of the iOS app back in March and was impressed by the simplicity of cross-platform media sharing: take a look at my demo video below.

      RemotePlay has been developed by Piddas21, a Taiwanese startup founded by ODM giant Quanta Computer. Piddas21 CEO and Founder Joe Lin told me back in March that the idea behind Piddas21 was to find additional revenue opportunities for Quanta customers who don’t want to just rely on hardware sales alone anymore. Quanta Computer manufactures three out of four laptops worldwide.

      Image courtesy of Flickr user Tsahi Levent-Levi.

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

          

    • Viki doubles down on content arbitrage with Asian TV and movie deals

      Viki is adding more than 2,000 hours of content from Japan, China, Taiwan, the Philippines and Venezuela to its global TV platform, thanks to new distribution agreements with broadcasters like TV Asahi, Huace and Venevision.

      Viki CEO and co-founder Razmig Hovaghimian told me during a call Tuesday that this is part of the company’s larger strategy of content arbitrage — it cheaply licenses out-of-market content, gets help from its community when it comes to translating these shows and then monetizes that content through advertising.

      Hovaghimian in particular highlighted the deal with Japan’s TV Asahi, which is going to include titles like CSI: Crime Scene Talks 2 and the Tradegy of W. It’s the first time TV Asahi has made any of its content available outside of Japan, and he told me that it took two years to make this happen.

      Viki is one of a number of companies licensing this kind of content to bring it to foreign markets, with others including Dramafever, Crunchyroll and Viewster. One of the differences is that Viki is purely ad-based.

      Viki is also using a very analytic approach towards content licensing, testing out formats with its community and licensing only content that’s popular with its viewers. Hovaghimian said that Viki often stumbles across unexpected niche markets this way. For example, it realized last year that Korean content is big in Latin America, with some shows getting up to 1.3 million viewers on Viki. At that point, it’s not really long tail content anymore, argued Hovaghimian: “We view it as the torso.”

      Related research and analysis from GigaOM Pro:
      Subscriber content. Sign up for a free trial.

            

      • Boxee rebrands new device as Cloud DVR, tones down cord cutting rhetoric

        Okay, I didn’t see this coming: Boxee has rebranded its new consumer electronics device just five months after it first became available. The $100 device, which combines live TV and cloud DVR functionality with apps like Netflix, is now being called Boxee Cloud DVR, after previously being marketed as Boxee TV. The company also used the rebrand to unveil a free service tier for its DVR.

        Boxee's Cloud DVR now comes with a limited free service tier.

        Boxee’s Cloud DVR now comes with a limited free service tier.

        The new Boxee Cloud DVR box offers users unlimited storage for their TV recordings in the cloud. Unlimited playback, as well as the capability to view recordings on computers and mobile devices, costs users $10 a month. The new free service tier offers up ro five hours of DVR playback every month. There is still a free test period while the service is in beta.

        So why did Boxee take the unusual step to rebrand a product just months after launch? The company’s VP of communications Andrew Kippen told me Tuesday that the previous name didn’t accurately capture the device’s functionality, letting consumers to believe that it was primarily a media player similar to Apple TV or Roku. The new name is meant to emphasize the DVR functionality as a key differentiator.

        However, It’s worth noting that the company’s DVR service is currently just available in eight markets. Kippen told me that the plan is to extend the service to 26 markets by the end of the year, which should cover most of the country.

        As part of the rebrand, Boxee seems to also have toned down its cord cutting rhetoric. The company made its ability to replace cable a key selling point when it unveiled its new device last fall, even promising “Free TV” prominently on the Boxee TV packaging.

        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. That has likely to do with the fact that Boxee wants to get access to cable content as well. The company struck an agreement with Comcast to access encrypted basic cable signals last year.

        That’s a decidedly different path than the one taken by Aereo, which has been battling Comcast’s NBC and other boradcasters in court for its take on cloud TV. Check out our paidContent Live conference in New York next week for a fireside chat with Aereo CEO Chet Kanojia.

        Take a look my Boxee Cloud DVR unboxing video below:

        Related research and analysis from GigaOM Pro:
        Subscriber content. Sign up for a free trial.

            

      • Where to watch the 2013 Masters Tournament live online

        April Madness, anyone? Okay, we might have to work on our sports metaphors, but for golf fans, things are only just getting started with the 2013 Masters Tournament. It’s the first of the four annual major golf championships, and it’s going to unfold this week at the prestigious Augusta National Golf Club in Augusta, Georgia.

        Unfortunately, much of the action will happen while most of us are at the office. Luckily, key events will once again be live streamed online: CBSSports.com and Masters.com will stream more than 90 hours live from the competition, with action unfolding on a total of four live channels.

        Want to learn more about watching live sports online without paying for cable? Then check out our e-book Cut the Cord: All You Need to Know to Drop Cable.

        Related research and analysis from GigaOM Pro:
        Subscriber content. Sign up for a free trial.