It's a Brave New World – Blog edited by Scott Arundale

Blockbuster made it official today, filing its long expected Chapter 11 bankruptcy, with a line of creditors that includes its product suppliers like Fox, Sony, Universal, Warner Bros and Disney. It seems unfathomable that given Blockbuster’s supremacy at one time–think of all the mom and pop video stores that went out of business when Blockbuster set up shop nearby–the corporation could not have been more forward thinking. It could have owned the VOD and rental by mail space dominated by Netflix, and it got its head handed to it by Coinstar’s Redbox, which offered the same DVDs in supermarket kiosks for 25% of the rental prices charged by Blockbuster. While Carl Icahn is reportedly buying up Blockbuster debt and somebody might take a shot at resurrecting Blockbuster and its $1 billion in assets, it might well be too late to establish itself in VOD and as a buyer of pay TV rights for films, as Netflix is now doing at a fraction of the costs incurred by Blockbuster to maintain its 3000 stores. It’s a cautionary tale about standing pat when the sand is shifting under your feet, and Blockbuster’s woes are similar to those being felt by brick and mortar bookstores like Borders and Barnes & Noble, which is hard pressed to compete with outlets like Amazon, serving up both paper books and e-titles without having to pay the light bill and staff the cash registers.

source: deadlinehollywood.com

WHY PAY-TV OPERATORS SHOULD BE SCARED

Blockbuster’s bankruptcy filing was a long time in coming, but is still daunting when you think back to how omnipresent and powerful the company used to be. To be sure, there has been a lot of distracting M&A and corporate drama surrounding Blockbuster over the years which no doubt contributed to its decline. Still, there have been fundamental shifts in its business that Blockbuster missed.

Specifically, Netflix has been both a catalyst of Blockbuster’s demise and also a big beneficiary. Now, with Netflix aggressively pursuing over-the-top streaming, it is inevitably going to put pressure on traditional pay-TV operators. So what might pay-TV operators learn from Blockbuster’s bankruptcy? Here are 6 things. No doubt there are more.

1. Love your customers, don’t abuse them – Blockbuster earned the enmity of its customers with egregious late return fees. Short-term that was profitable, but long-term it built up huge resentment and frustration (Netflix lore is that CEO Reed Hastings started the company in response to his own frustration over late fees). When customers feel taken advantage of, the door swings open to competitors. Many pay-TV subscribers spending $100 or more per month feel they’re over-paying for lots of channels they don’t watch. That should be a red flag to prompt changes in pay-TV packaging.

A man who has too much viagra without prescription article mastercard cialis online of meat and offal Sardines, salmon, anchovies, etc. The doctor shall need to check general signs of health, including viagra india checking for signs of stress that can have a negative impact on your wellbeing. You should always check the quality of the drugs is a result of high intention, hardwork, skillful execution and intelligent direction; it getting viagra online represents the judicious choice of many alternatives. Why we have Iggy Pop for Royal Caribbean, Bob Dylan promoting Victoria’s Secret products, Billy Preston teaming up with the Zombies for Fidelity Investments, Led Zeppelin pitching Cadillacs, Aerosmith for Buick, the O’Jays for Coors Beer, Deep Purple promoting Dodge, the Who allowing their music to be used in Cisco commercials, the flower power group the Association pitching Allstate Insurance, why we even have Helen Reddy’s classic anthem. check out for more info viagra 50 mg 2. Don’t cling to incumbent business models – When you have a good thing going, it’s tempting to not to change. Blockbuster hung on to its store-based and pay-per-rental model and entered fixed price DVD-by-mail and online distribution late and half-heartedly. As Andy Grove famously said, “Only the paranoid survive.” The point is, the world changes and so must business models. For pay-TV providers, just because multichannel subscriptions have worked for years doesn’t mean they always will.

3. Physical infrastructure may not matter as much as hoped – It’s often the case that having lots of physical infrastructure creates a big entry barrier for would-be competitors. For Blockbuster, its network of thousands of stores was thought to be an insurmountable advantage. But Netflix avoided stores by using the mail (and building relatively few distribution centers). Similarly pay-TV operators have invested billions in their networks, but over-the-top players like Netflix are simply using the open Internet to deliver their content. While physical infrastructure often helps, pay-TV operators shouldn’t consider it a rock-solid defense.

4. What appears inferior may actually be superior – It may be a distant memory now, but when Netflix started it was actually less convenient than Blockbuster, because you had to wait to receive the DVDs a few days out, whereas with Blockbuster you could drive down the street and get something immediately (even if it wasn’t always your top pick). But Netflix turned that disadvantage into an advantage by developing sophisticated inventory software and the ability for subscribers to create/manage queues. The result was subscribers disproportionately watched older movies, largely avoiding the stockout phenomenon and financial burden that plagued Blockbuster’s hits-driven business. Similarly, today Netflix offers no live programming, making it an inferior offering to pay-TV. But with consumers shifting to on-demand viewing, not having live is becoming less important.

5. DNA and focus matter, a lot – Like human beings and leopards, it’s awfully hard for companies to “change their spots.” Blockbuster succeeded by operating a store-based model. When they tried to overlay DVDs-by-mail and online they couldn’t execute. Netflix started as DVD-by-mail only and relentlessly refined that model. It’s been extraordinary to see how seamlessly they’ve evolved to online delivery. Pay-TV operators have struggled to evolve from linear delivery to anywhere/anytime/any device delivery. Pay-TV operators mustn’t let their DNA disadvantage them.

6. Technology is a friend and must be embraced – A huge part of Netflix’s success is due to advanced technology deployed in every aspect of its business. I have a hunch that that’s because Reed Hastings is a tech guy himself, who respects and understands technology’s critical role. It’s unlikely that anyone who walked into a Blockbuster store ever felt it was high tech. My memories of being in stores are about seeing low-paid, apathetic teenagers staffing the whole operation. With pay-TV operators, many have made huge strides in how they use technology in their operations, yet too often deficiencies are obvious to their subscribers. Things that are a given on the web like self-service ordering are still rare, requiring tedious phone calls.

So there are 6 things pay-TV operators can learn from Blockbuster. No doubt there are many others as well. Netflix’s fingerprints are all over Blockbuster’s demise. Pay-TV operators need to be vigilant because they are next in Netflix’s cross-hairs.

source:  videonuze.com

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Ivi streams broadcast television programming to computers for only $4.99 per month. NBC, CBS, Fox, and Disney have a problem with that.

While Ivi, Inc., has only launched a week ago, the Seattle, Washington, startup has gotten quite a bit of attention. That’s not surprising when its business model is taking over-the-air television content and streaming it for a fee.

At the moment, Ivi (pronounced “ivy”) offers broadcast channels from Seattle and New York City, which can be viewed on any Internet-connected Windows, Mac, or Linux computer. The company plans to add additional markets every 45 days, says founder and CEO Todd Weaver, including Los Angeles, Chicago, and San Francisco.

After that, Ivi plans to offer an a la carte premium channel selection. Weaver won’t name names, but says the company is in talks with channel creators. Once it has a stable of premium channels, the company will offer theme-based packages of channels.

Viewers will also be able to view a range of independent channels. Ivi offers a few now, including public access, sports, and music channels, and plans to add more. The company is in talks to add pay-per-view sports channels, as well, Weaver says.

Growing Like Wild
Besides growing its channel list, Ivi has other plans that should help it spread like, well, ivy. First the company is looking to the mobile space. It’s already submitted an iPad app, and even a revision to that app. Weaver expects the app to be approved and available in the iTunes Store by mid-October.

After that, the company will offer iPhone and Android apps.

Once the mobile bases are covered, Ivi will look to set-top boxes, reaching out to makers such as Roku.

Ivi’s features will grow, as well. Currently, subscribers can pay an extra $.99 per month for Ivi Pro, which offers simple pause, fast forward, and rewind options. Look for that to grow into more fully-featured DVR controls with program scheduling.

If this all seems like fast growth, consider that Ivi was incorporated back in 2007, and only just launched its first consumer offering. It’s been using that time to build out its encryption, says Weaver. Rather than a traditional digital rights management system, which prevents sharing, Ivi has built a downloadable player that allows the subscription to travel with the subscriber.

Legal Battles Ahead
The cease-and-desist letters began almost immediately after Ivi launched. Fisher Communications and NBC Universal were first, says Weaver, followed by representatives for ABC, Fox, the CW, and several more. All alleged that what Ivi is doing constitutes copyright infringement.

The company’s defense, says Weaver, is that Ivi is a cable system transmitting under U.S. copyright laws, and that the Copyright Act authorizes this type of secondary transmission. While the law may not have caught up with online streaming yet, he says that cable operators and satellite broadcasters all had to fight the same fight in their early days.

When the first letters came in, Ivi sent replies explaining what it was doing. After it heard from more companies, it filed a letter of non-infringement in Seattle court.

Despite going up against some pretty deep pockets, Weaver is optimistic that the law is on Ivi’s side.

“It’s very much a David and Goliath competition. We’re a small company fighting for the distribution rights of consumers,” Weaver says.

While it’s the networks that are going after Ivi, Weaver says the cable and satellite companies have most to lose.

“They’re going to be the most mad, there’s no doubt. At the end of the day, we’ll be eating their lunch,” Weaver says. “Should they be worried that their subscriber base is going to be dropping? Yes, I’d say so.”

source: streamingmedia.com

Disney and Sony have just announced a pact to bring Alice in Wonderland and Bolt on Blu-ray 3D exclusively to Sony 3D TV customers, adding to a tangle of exclusivity deals that is ultimately afflicting consumers.

Under the deal, people who buy a Sony 3D TV will be able to receive the Disney Blu-ray 3D titles for free. At least for the time being, these titles will not be released in stores and are not going to be available through any outlet as standalone movies.

It is an increasing trend in the burgeoning Blu-ray 3D playing field, as movie studios find it hard to stomach the cost of producing a new format for such a small audience, and TV manufacturers are eager to provide incentives to come to their side. Thus, TV makers have been paying the studios to get exclusive rights to the Blu-ray 3D versions of their films.

Samsung and Dreamworks have a tight pact, allowing only people who buy a special Samsung 3D glasses bundle to get the 3D version of Monsters vs. Aliens. Shrek will also be getting a similar treatment. Meanwhile, Panasonic offers Coraline and Ice Age: Dawn of the Dinosaurs. Panasonic also recently scored a major coup, gaining the exclusive rights to the Blu-ray 3D version of Avatar. That deal is widely assumed to be only as a timed exclusive.
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The only Blu-ray 3D title that anyone can actually go to a store and buy is Cloudy with a Chance of Meatballs, a Sony Pictures flick. Sony 3D TV buyers do get a copy of that movie for free, but Sony decided to also make it available for other 3D customers as well. Only a handful of other titles are expected to be pushed to retail within the next several months.

source: www.tgdaily.com

SI Electronics has announced it is developing an arcade board that will support 3D displays – wait for it – without the need for wearing any 3D glasses.

The news comes during a time when manufacturers are showing off their prototype tablets, some of which are 3D, at the electronics fair, IFA 2010, in Berlin.

The board was originally announced at the AOU Amusement Expo and will use a new internally developed processor. According to SIE the processor will allow glasses-free 3D displays and still output full HD visuals while retaining a small footprint and low cost.
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A video of this new arcade board will be shown at the Kaga Amusement booth at the Amusement Machine Show in Tokyo, Japan, on Thursday.

source: hdguru3d.com

The 3D Experience, New York’s first Annual 3D Entertainment and Technology Festival, today announced the presenters lineup for the Executive Forum. To kick off the three day event, key industry leaders and professionals will converge at the AMC Empire 25 Theaters in Times Square on Sept. 24 for a day packed with informative keynotes, presentations and panels encompassing the full spectrum of the 3D industry.

“The Executive Forum brings together industry pioneers and newcomers to take the pulse of the rising 3D industry and learn to navigate the ever-changing entertainment and technology landscape,” said Nino Balistreri, managing director for The 3D Experience. “3D has altered the way consumers experience digital content and will continue to push the limits of creativity. The 3D Experience will be an incubator for enduring partnerships and new revenue opportunities.”

The inaugural Executive Forum features a dynamic lineup including an all-industry address by Phil McKinney, vice president and chief technology officer, HP, followed by presentations from Ken Venturi, chief creative officer & EVP, National CineMedia, Robert H. McCooey, Jr., senior vice president of new listings and capital markets, NASDAQ OMX, Richard Gelfond, CEO, IMAX, Jim Chabin, president, International 3D Society, and David Beal, president, National Geographic Entertainment. These key industry veterans will cover the emergence of 3D in recent years, its financial impact, how to take advantage of its robust growth and thrive in this exciting, uncharted territory.

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The 3D Experience Executive Forum attendees will be offered unparalleled networking opportunities through the NASDAQ Opening Night VIP Reception presented by LG, VIP film screenings, dinner reception and the highly-anticipated 3D TV Test Drive. For the latest more information on the speaker lineup and panels, please visit: Speakers.

The Executive Forum is targeted at industry professionals, but The 3D Experience will engage entertainment enthusiasts and general consumers alike by simultaneously presenting the 3D Consumer Showroom at the Discovery Times Square Exposition from Friday, Sept. 24 to Sunday, Sept 26. Hosted by Best Buy, the Consumer Showroom will be free and allow visitors to interact with a myriad of 3D products from 3D TVs, gaming systems, home theatre accessories and more. Showroom hours are Friday, September 24, noon-8pm; Saturday, September 25, 10am to 8pm; and Sunday, September 26, 10am to 6pm. To enrich the festival weekend, AMC Theatres Empire 25 will feature screenings of classic and recent 3D blockbusters. For an up to date schedule of screenings, please visit: www.the3dexperience.org.

About The 3D Experience
The 3D Experience is committed to creating large-scale interactive programs that bring together leading minds, leading products and leading experiences. Event Partners for The 3D Experience include NASDAQ OMX, Best Buy, National CineMedia, IMAX, AMC and Discovery TSX. Sponsors include LG Electronics USA, Mitsubishi Digital Electronics America, Inc., 3ality Digital, Panasonic, NVIDIA, AT&T, Northern Lights Entertainment, 3D Eye Solutions, BodySound Technologies, Texas Instruments, RealD, 3DMedia, Jump 3D, Hello Charlie and Passmore Lab. Supporters include National Geographic Entertainment, Paramount Pictures, Red Bull Records, IMS Research and International 3D Society. The 3D Experience is produced by e5 Global Media, a diversified company with leading assets in the media and entertainment arenas. For more information and to register for The 3D Experience visit www.the3DExperience.org. Connect with The 3D Experience on Facebook at www.facebook.com/3dexperience and Twitter at twitter.com/the3dexperience.

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7.6.10  Apple employees are sworn to secrecy but somebody is talking over there.

“The people familiar with the company’s plans also said that Apple executives are well aware that the battle for the living room is going to be arduous, and that the company must get it right the next time.”

My wife gave me an Apple TV last Christmas but I asked her to return it to the store.  Looking at the home entertainment console groaning under the weight of the cable box, the Wii and the DVD player, I wasn’t ready to add another level of confusion not to mention a fourth remote.  But quietly I hoped that someday there might be  way to cut the cable cord and lose some of the expensive clutter.

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Adding a few bucks may seem like a modest increase to admissions, but will moviegoers always be willing to pay a premium once 3D becomes standard fare?  It reminds me of a time when the record companies got overly zealous in raising prices for CD’s as the new format began to replace vinyl.  Napster came along and the rest was history.

UPDATE 5.20.10

The Wall Street Journal talks about a new milestone in ticket prices – “The $20 ticket (for Shrek 3 in Imax 3D) may prove to be a psychological barrier too steep for some moviegoers to overcome, but the industry appears ready to take the risk, especially in the wake of a string of 3-D blockbusters, from “Avatar” to “Alice in Wonderland.” 3-D movies accounted for the vast majority of last year’s 10% jump in domestic box-office sales. That figure is likely to climb even higher for 2010.”

UPDATE 7.14.10

Richard Greenfield, analyst with BTIG Research in New York, argues that theater operators and studios risk alienating increasing numbers of moviegoers from the 3D format by charging high ticket prices.

In a survey of 2,600 consumers, Greenfield found that 77% of respondents believe the average $4 premium for a 3D ticket (compared to 2D) too excessive, including about 37% who said they would not pay extra to see a movie in 3D. More than 80% of respondents said they had seen a 3D movie.

Greenfield conducted the survey in advance of the July 15 initial public stock offering (IPO) for Los Angeles-based RealD, which licenses 3D technology to motion picture exhibitors, in addition to its side-by-side technology (allowing for 3D images to both the left and right eye) to stream content into a single channel to any 3DTV.

RealD offers theater operators free 3D upgrades to existing digital projectors in exchange for a 40 cents to 50 cents license fee per moviegoer, according to Greenfield. The studios and RealD subsidize the cost of theatrical 3D glasses.

“It is pretty clear from the [respondent] comments that they are not happy with the movie exhibition industry and are clearly differentiating between paying ‘up’ for movies like Avatar vs. less exciting, lower quality movies,” Greenfield wrote.

Source: www.homemediamagazine.com

UPDATE: 7.21.10

Fewer and fewer moviegoers are making the 3D choice when they plunk down their money at the box office.

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Source: TheWrap.com

Update: 8.15.10

The Financial Times weighs in the continued viability of the 3D marketplace based on the recent crop of dud releases:

It was hailed as the great saviour of the film industry, but since 3D technology propelled Avatar to a record-breaking $2.73bn box-office haul, fears are growing that Hollywood is endangering its profitable new format.

“The studios and theatres are overpricing 3D films and there’s too much of it out there,” said Richard Greenfield, an analyst with BTIG Research.

“They are converting all of their movies into 3D without any regard to quality.”

A US ticket for Cats & Dogs, which was panned by critics, cost up to 50 per cent more than Christopher Nolan’s Inception, which was released in 2D recently to great critical acclaim. Yet Cats & Dogs cost less to make thanInception and was only converted into 3D after production had finished.

“Why should releasing a film in 3D and having the audience wear 3D glasses cost more?” asked Mr Greenfield.

The studios have packed their release schedules with 3D films: Tron: Legacy, The Green Hornet, Megamind and Yogi Bear are lined up for the coming months, whileAvatar will be re-released in 3D at the end of August.

Proponents of 3D insist that it can be a powerful tool when used correctly. “It’s a tool for filmmakers and a premium entertainment experience for moviegoers,” says Rick Heineman, vice-president of marketing at RealD, which makes 3D projection systems for cinemas.

But other analysts say Hollywood is playing a risky game by betting on unwavering consumer enthusiasm for 3D – and for higher prices.

“The studios are guilty of short-term thinking,” says Brandon Gray, president of Box Office Mojo, which tracks film box-office performance. “They all jumped on the 3D bandwagon but they’re avoiding the real issue, which is their bankruptcy regarding storytelling.”

Source: ft.com

3D and Blu-ray drive each other to market.

Carolyn Giardina’s article in Variety spells out a breath of fresh air for the Blu-Ray market:

Despite Sony’s victory over rival HD-DVD in the format war, Blu-ray has remained a format without a compelling value proposition. It delivers a better picture than DVD, but not dramatically better, and consumers have been moving toward the convenience of streaming rather than the quality of true HD on Blu-ray.

There’s one area, though, where Blu-ray seems to have the edge: stereoscopic 3D. In fact, 3D may put Blu-ray in millions more living rooms — and, in turn, Blu-ray may help drive 3D in the home.

Don Eklund, Sony Pictures’ executive Vice President for advanced technologies, recalls that during the format war with HD-DVD, critics said Blu-ray was over-engineered. Those advanced capabilities, however, have proven essential in giving the format an advantage in 3D homevideo, which requires storing and moving massive amounts of data. Blu-ray does this much better than Web streaming.

A single Blu-ray disc can hold an entire 3D movie at full 1080p HD resolution, and the players can pump that data to the screen with no problem. With Web streaming, the consumer doesn’t need a lot of storage space, but few broadband services have the speed to handle a dual load of 1080p video for the left and right eyes – required for 3D.

Eklund estimates a player must be able to handle 50-55 megabits per second (Mbps) for 3D with full HD for both eyes. An Akamai Technologies study pegged average broadband speed in the U.S. (including consumer, corporate and mobile) at just 3.8 Mbps. AT&T’s DSL maxes out at 24 Mbps.

Ahmad Ouri, chief marketing officer at Technicolor, believes Blu-ray has the edge for the foreseeable future. “It will be very difficult to stream a 50-gigabyte file, even if you have a high-bandwidth pipeline to the home,” he says.

Blu-ray launched in 2006, and the Blu-ray Disc Assn. (BDA) asserts that the format has reached more than 10% penetration, counting set-top players and the PlayStation 3 – ahead of where the DVD rollout was at a similar point in time.
Blu-ray stakeholders tout the format’s image quality and connected features, but Ouri says that “in terms of differentiating features for the consumers, I think definitely it will be 3D” that drives sales.

3D has also given consumer electronics firms, eager to sell 3D flatscreens, a reason to get behind Blu-ray.

“3D will likely become a standard feature on the majority of new HDTVs, and that will certainly support sales of Blu-ray,” says Lexine Wong, senior exec Vice President of worldwide marketing at Sony Pictures Home Entertainment.

With 3D cable and satellite still scarce, and terrestrial 3D basically nonexistent, Blu-ray is the most market-ready 3D delivery system available today.

Even with 3D, though, Blu-ray may have a limited window to make inroads. The FCC’s National Broadband Plan calls for a massive increase in Internet bandwidth to the home, enough to make 3D streaming practical, within 10 years.

That plan has driven another group into the 3D Blu-ray camp: broadcasters.

The broadcasting industry isn’t keen to surrender spectrum for wireless broadband – something the FCC plan asks them to do – nor are they eager to use all their bandwidth for 3D TV.

source: variety.com

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