VideoNuze Posts

With New Kylo Browser Convergence is Another Step Closer

Monday, March 22, 2010, 9:21 AM ET

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Posted by Will Richmond

This morning Hillcrest Labs is announcing its new "Kylo" browser, providing people who connect their computers to their TVs with an optimized and complete on-TV Internet browsing experience. Kylo is being offered as a free download by Hillcrest, the maker of the "Loop pointer," a clever "in-air" mouse. After downloading Kylo and connecting my Mac to my TV over the weekend, I was quickly navigating Kylo with a Loop. Taken together, Kylo and the Loop deliver an inexpensive, yet high-impact online video/TV convergence experience.

As Dan Simpkins, Hillcrest's CEO and founder told me last week, Kylo strives to deliver the simplicity required for a satisfying on-TV experience with enough of the most-often used features of computer-based browsing. As such, the first thing you notice about Kylo is that all of the buttons and text are a lot bigger than with standard browsers like IE, Firefox, Safari, Chrome, etc. The layout is also a lot cleaner, with all extraneous text and navigation found in these other browsers stripped away.

With Kylo you can navigate to any web site, either by clicking on any one of the 125 or so pre-set, scrollable logo buttons Kylo conveniently includes, or by using the on-screen keyboard. The keyboard takes a little getting used to, mainly because the Loop requires only minimal wrist gestures to move the pointer around. To be sure, typing on a virtual keyboard like this will never be as easy typing on a full keyboard, but then again the idea here is to eliminate the need for keyboard on your coffee table. My bigger issue (and really the only Kylo drawback I could find) is that the text box used for searching is relatively small and hard to read, at least on our 23-inch office TV. Kylo also allows standard browsing features like bookmarking, zooming and full screen viewing modes.

Hillcrest is looking to leverage the growing number of U.S. homes (estimates vary, but certainly in the millions already) that have connected their computers to their TVs. Some of these people are "cord-cutters" who have dropped their subscription TV service, but many more are just trying to enjoy Hulu, Netflix, YouTube or other online video sources on their TVs instead of solely on their computers. When I connected the 2 devices a while ago, one of the first things I realized is that because the computer is next to the TV, not to me, there's a new need created for a remote control to control the computer. Though I have the Apple remote, it offers only limited functionality.

Dan explained that while Kylo is free, Hillcrest's real objective here is to create stimulant for Loop sales. While you can navigate Kylo using any mouse, it's a whole lot easier (and cooler) with the Loop. Plus having the $99 Loop means you don't have to have a mouse and a mousepad on your coffee table. My kids and I got the knack of the Loop pretty quickly and we were able to watch Netflix and YouTube content right away. The Loop offers an inexpensive functionality upgrade especially in college dorms where the computer is now often the de facto TV.

The Kylo/Loop set-up is further evidence of the inexorable convergence of online video and TV. However, the underlying need to connect the computer to the TV shows that there are still inconveniences to be resolved. The ideal solution here is an all-in-one box that seamlessly blends online and on-air programming with all the Internet functionality users expect. For a variety of technology and business model-related reasons we are still years away from that solution. However as consumers adopt solutions like Kylo/Loop, pressure will build on service providers to deliver the all-in-one solution. That means that eventually (by end of this decade?) the distinctions between online and on-air will become meaningless.

What do you think? Post a comment now (no sign-in required).

Categories: Technology

Topics: Hillcrest Labs, Kylo
Wrapping Up the YouTube-Viacom Court Documents Coverage

Friday, March 19, 2010, 10:40 AM ET

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Posted by Will Richmond

Wow, based on the extensive coverage of the newly disclosed court documents in the Viacom-YouTube copyright lawsuit, you'd almost think the business press hit the pause button on everything else going on yesterday to spend time reading the details. The combination of 2 heavyweight companies slugging it out, billions of dollars at stake and juicy, behind-the-scenes details finally revealed (like how the $1.6 YouTube acquisition largesse was shared) makes this an irresistible story with lots of legs.

I've only spent a little time reviewing the documents, but for those interested in the 360 degree immersion, following is some of the best coverage I've been reading, in no particular order. No doubt there's plenty more to come. And if you're a real glutton for punishment, just google "Viacom YouTube court documents" and you can spend your entire weekend reading everything!

Viacom Says YouTube Ignored Copyrights - NY Times

YouTube Accuses Viacom of Secretly Uploading Clips - Mediapost

Viacom, YouTube Trade Barbs in Copyright Feud - Multichannel News

Viacom and Google Trade Accusations - WSJ

YouTube Says Viacom Agents Secretly Uploaded Video, Then Lawyers Sued - AdAge

The Numbers Behind the World's Fastest Growing Web Site: YouTube's Finances Revealed - AllThingsD.com

Viacom, Google Air Dirty Laundry in Court Docs - CNET

Did YouTube Jilt Viacom for Google - NewTeeVee

Revealing Docs Emerge in Viacom, YouTube Spat - Variety

What do you think? Post a comment now (no sign-in required)

Categories: Aggregators, Cable Networks

Topics: Google, Viacom, YouTube
Google's 1 Gigabit Fiber Experiment is a PR Bonanza

Friday, March 19, 2010, 9:51 AM ET

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Posted by Will Richmond

I was deeply skeptical of Google's recently announced 1 gigabit/second fiber-to-the home experiment, but I will concede this: it appears to be influencing the broadband Internet access discussion and is turning into a PR bonanza for the company. Consider 2 of the latest examples: Comcast, America's largest broadband ISP, announced this week that it would make 100 megabit/second speeds available to all customers within 12-18 months and the FCC's new broadband plan set a goal of 100 million U.S. homes having 100 mbps within 10 years and that all schools, hospitals and government building should have 1 gbps access - goals that seem influenced by Google's experiment.

Meanwhile, as my former colleague and astute industry watcher Bruce Leichtman pointed out to me this week, the press continues to lavish attention on Google's plan, giving it all kinds of free PR. Bloomberg BusinessWeek ran a long article praising the company's fiber plan as providing the impetus to other broadband ISPs to increase their speeds. And my hometown paper the Boston Globe ran a feature this week about the lengths to which towns across Massachusetts are going to be selected as one of the coveted few areas to have Google deploy its network. Though Google hasn't wired a single one of the 71.8 million U.S. homes that subscribed to broadband at the end of '09, you'd think from the goings-on that they were the dominant player driving the market. You gotta love how well the Google PR machine works.

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Categories: Broadband ISPs

Topics: Comcast, FCC, Google
Kaltura Gives HTML5 Another Boost

Friday, March 19, 2010, 9:13 AM ET

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Posted by Will Richmond

HTML5, the next version of HTML, which seeks to make video more open and flexible, got another boost this week as Kaltura, the online video platform company, and its partners unveiled two new initiatives. Kaltura made available its HTML5 Video and Media JavaScript Library and also launched HTML5Video.org, a site that includes demos and related news.

Ron Yekutiel, Kaltura's Chairman and CEO explained to me that given the company's emphasis on open source, it was a natural to embrace HTML5. Ron sees HTML5 as allowing developers to treat video just like text and freeing video to run across platforms, devices and browsers without needing any plug-ins. One of HTML5's biggest benefits is that it works on the iPhone, which means developers using it avoid Apple's anti-Flash bias, while also gaining access to other smartphones. Still, Ron says Kaltura is "pro-choice" so if its customers want to use Flash or Silverlight, it will support those as well. Separately, HTML5 got another boost this week as Microsoft made available the first developer preview of IE9 (the next version of its widely-used browser) that offers extensive HTML5 support.

What do you think? Post a comment now (no sign-in required)

Categories: Technology

Topics: HTML5, IE, Kaltura, Microsoft, Open Video Alliance, Wikimedia Foundation
Potential Blockbuster Bankruptcy Another Reminder of Changed Movie Landscape

Friday, March 19, 2010, 9:07 AM ET

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Posted by Will Richmond

In case you missed it, this week Blockbuster, the once dominant movie rental chain, filed its 10K annual report with the SEC, in which it warned of "substantial doubt about our ability to continue as a going concern," continuing on to say it may seek relief through a bankruptcy filing. A filing has been rumored for a while now, but until its annual report, Blockbuster has resisted acknowledging this path.

Aside from whatever else can be said about Blockbuster in recent years - vast over-expansion, poor financial management, slowness to respond to new competitors like Netflix and Redbox - the company's potential bankruptcy is surely one of the most vivid reminders of how much the movie rental industry has changed in the last 10 years and how much it is yet to change in the next 10 years. Blockbuster will likely be remembered as a temporary player that drove wider movie access in the analog era, but then got crushed as rentals shifted in the digital era. The separate news this week of cable operators and studios beginning to vigorously promote VOD shows cable operators are determined not to be left behind, like Blockbuster has been, as the next chapter of movie rentals unfolds.

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Categories: Aggregators, Deals & Financings

Topics: Blockbuster
VideoNuze Report Podcast #53 - March 19, 2010

Friday, March 19, 2010, 7:48 AM ET

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Posted by Will Richmond

Daisy Whitney and I are pleased to present the 53rd edition of the VideoNuze Report podcast, for March 19, 2010.

This week Daisy and I dig into my post from this past Wednesday, "The Battle Over Movie Rentals is Intensifying" in which I described a new $30 million ad campaign that launched this week to promote consumer awareness of movies accessible through cable TV operators' Video-on-Demand (VOD) initiatives. The campaign is being funded by 8 Hollywood studios and 8 cable operators and will run for the next 12 weeks.

In the post I noted how the so-called "day-and-date" availability of movies on VOD (simultaneous with their DVD release), plus the consumer convenience of immediate viewing on the TV, are key VOD differentiators. In today's podcast Daisy and I explore how compelling these differentiators actually are, and how other options such as Netflix, Amazon and iTunes compare. After trying to explain the nuances a bit further, Daisy's reaction was that this stuff is so confusing that "her head is swimming."

Daisy's hardly an amateur, so if that's her reaction, one can easily imagine how many consumers will react as well, as they are bombarded with movie rental offers. Trying to figure out what movie viewing option(s) best meet their needs is going to take some work. But hey, nobody ever said that having a lot of choices is necessarily a lot of fun! Listen in to learn more.

Click here to listen to the podcast (14 minutes, 45 seconds)

Click here for previous podcasts

The VideoNuze Report is available in iTunes...subscribe today!

Categories: Cable TV Operators, Podcasts, Video On Demand

Topics: Podcast, Video-on-Demand
Early Bird Registration Now Open for VideoNuze's Next "VideoSchmooze" Event: April 26th, NYC

Thursday, March 18, 2010, 9:24 AM ET

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Posted by Will Richmond
I'm pleased to share that early bird registration is now open for VideoNuze's next "VideoSchmooze" Broadband Video Leadership Evening, on Monday evening, April 26th from 6-9pm in New York City.

The topic of the panel, which I'll moderate, is "Money Talks: Is Online Video Shifting to the Paid Model?" We have an amazing group of panelists who represent multiple perspectives:
- Jeremy Legg - SVP, Business Development, Turner Broadcasting System, Inc.
- Damon Phillips - VP, ESPN 360 (soon to be ESPN 3)
- Avner Ronen - CEO and Co-founder, boxee
- Fred Santarpia - General Manager, Vevo
Click here to learn more and register for the early bird discount

Our discussion couldn't be more timely given the current rollouts of TV Everywhere, the rapid growth of Netflix's Watch Instantly streaming, the introduction of paid iPhone apps like CBS Mobile's premium "March Madness on Demand" and other paid initiatives. Still, the vast majority of online video viewed - at leading sites like YouTube and Hulu, is free and ad-supported. Our panelists and I will dig into the key drivers shaping the business model debate and what we can all expect going forward on this critical issue. As always, there will be plenty of time for audience Q&A. For anyone trying to figure out how to make money with online video, this panel will be a must attend.

A bonus feature of this VideoSchmooze will be a special 15-minute presentation preceding the panel discussion by Emily Nagle Green, President and CEO of Yankee Group, a leading industry market research and consulting firm. Emily is also the author of the recently published book, "Anywhere - How Global Connectivity is Revolutionizing the Way We Do Business." Emily is an old friend and used to also run Forrester Research's North American business. She's been studying broadband for 15+ years and some of the key findings from her book are fascinating. Her presentation will be an ideal "stage-setter" for the panel to follow.

I've heard your feedback from past VideoSchmoozes and so there are two additional changes to the event this time. First, the networking period will be up-front, from 6-7:30pm, allowing ample time to mingle and meet industry colleagues. Second, by popular demand, we'll have open bar (and hors d'oeuvres) during this period. In other words, no drink tickets this time around.

Past VideoSchmoozes have attracted 250+ attendees and I expect the same at this one. VideoSchmooze is a premier opportunity to expand your network and meet the panelists, whether you're pursuing business or personal opportunities in the industry. As with past events, I expect a strong mix of established media and technology executives, along with interesting early stage companies, entrepreneurs and investors.

The event will again be held at the gorgeous Hudson Theater, a historic gem on West 44th Street just off Times Square. I'm extremely grateful to lead sponsor Akamai Technologies and supporting sponsors FreeWheel, Horn Group, Irdeto, NeuLion, Panvidea and ScanScout for making the evening possible. Once again VideoSchmooze is being held in association with NATPE.

In addition to individual tickets (early bird discounted rate of $65), I've also created more deeply discounted "5-Pack" and "10-Pack" tickets for those of you who plan to come with colleagues. I hope to see you on April 26th!

Click here to learn more and register for the early bird discount
Categories: Events

Topics: VideoSchmooze
The Battle Over Movie Rentals is Intensifying

Wednesday, March 17, 2010, 10:04 AM ET

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Posted by Will Richmond

News this morning of a $30 million advertising campaign being launched by 8 Hollywood studios and 8 cable operators promoting "Movies on Demand" is fresh evidence that the battle over movie rentals is intensifying. According to the press release, the 12-week campaign, dubbed "The Video Store Just Moved In" is meant to raise consumer awareness of the convenience and affordability of renting movies on cable.

Cable Video-on-Demand (VOD) has been around for a long while (in fact 20 years ago my summer internship for Continental Cablevision was studying the ROIs for VOD's precursor, "Pay-per-view"). What's new more recently is the growth of so-called "day-and-date" availability - which means movies are released to VOD at the same time as they become available on DVD. The other recent phenomenon is the widespread adoption of digital set-top boxes and other technologies which makes selection, ordering and delivery easier than ever.

Day-and-date availability is a key competitive differentiator for cable vs. other options, though on the surface it seems somewhat incongruous that studios are on board with this considering their desire to protect DVD sales (this was the key goal of the 28-day "DVD sale" window Netflix and Warner Bros. recently created). Yet Kevin Tsujihara, president of Warner Bros. Home Entertainment Group said that apparently research has shown that simultaneous VOD release doesn't hurt DVD sales. All titles Warner Bros. releases to VOD this year will have day-and-date availability.

The day-and-date advantage is evident at least vs. Netflix for the 9 movies the press release cited as the opening slate being promoted: "Precious," "New Moon," "Ninja Assassin," "Pirate Radio," "Astro Boy," "Bandslam," "Did You Hear About the Morgans," Fantastic Mr. Fox" and "The Fourth Kind." A search on Netflix for the 9 revealed that 5 are listed as "Short wait," 1 becomes available on Mar 20th, 1 on Mar 23rd, and 2 on April 13th (none are available for streaming). However, it's a different story for Amazon - all of the cable VOD movies are currently available for rental from Amazon (except "Mr. Fox") and for purchase. The Amazon rental price is $3.99 for each, whereas the rental price from Comcast (my service provide) is $4.99.

For now anyway, it seems Hollywood studios have decided that cable VOD and online rental firms get day-and-date access, while subscription services like Netflix wait longer (btw Redbox too is being pushed into the "wait longer" category). According to the NY Times article, this is likely because VOD and online rental give studios a 65% share of revenue vs. lower percentages for other outlets.

For consumers, the cable VOD option is likely the most convenient and instantly gratifying. There's no new box to set up or pay for as with Roku, TiVo or another, which would be needed to access Amazon VOD, for example, on TV. For those that haven't bridged broadband to their TV with such a box or a direct connection, on-computer viewing only would be a limitation in the experience. Still, while the day-and-date option is key for those consumers who just have to see a particular title right then, because it's a la carte, it's a far more expensive option than a monthly Netflix subscription, which starts at $8.99/mo. Convenience clearly has its price.

Consumers aren't monolithic though; there isn't one right or wrong model. Each viewing option offers pros and cons and consumers will choose which one, given the particular moment or circumstance, best meets their needs. With the battle for movie rentals escalating, the real winner here looks like the consumer who is being presented more choices than ever.

What do you think? Post a comment now (no sign-in required).

Categories: Cable TV Operators, FIlms, Studios, Video On Demand

Topics: 20th Century Fox, Armstrong, Bend Broadband, Bright House Networks, Comcast, Cox, Focus Featu, Insight, iO TV, Time Warner Cable