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Hollywood Missing Out on Opportunity to Capitalize on Streaming

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Anne Madison‘s insight:

How can you tell that a business model has gone from being the "goose that lays the golden egg" to a serious liability? This particular issue couldn’t be more evident ever since streaming exploded on the scene.  Hollywood is convinced that streaming will be the death of their profits – just like they thought physical copies of their content would seriously harm their profits when VHS came of age back in the day. 

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Hey Hollywood! Digital Entertainment Group Study Proves Streaming is Your Friend

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According to numbers released by The Digital Entertainment Group, consumers are finally spending money on home entertainment after a tough recession drove spending down for several years. Despite the fact that the Hollywood studios have dug their heels in and not cooperated with streaming services like Netflix to offer reasonable blanket licensing agreements to stream their newer content, it seems that consumers don’t mind watching content from yesteryear.

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Roku’s Anthony Wood: Internet Streaming Will Save Network Television

Roku

Roku (Photo credit: Steve A Johnson)

With 38% of U.S. households having their TV connected to the internet (based upon a report by the Leichtman Research Group released earlier this month), up 8% from 2011, internet streaming is becoming “the next big thing” in entertainment distribution.

Bruce Leichtman says “Video is increasingly being watched on different platforms and in different places, yet these emerging video services will generally act as complements to traditional television viewing and services rather than substitutes.  Among all adults, reported time spent watching TV is similar to last year, and there remains little evidence of a significant trend in consumers “cutting the cord” to their multichannel video services to watch video solely via these emerging services.”

Anthony Wood, CEO of Roku, might beg to differ with Leichtman’s conclusions.  According to the San Franscisco Chronicle, Wood noted that the future of television is in internet streaming, with availability being predominantly on demand.  In fact, streaming media players will likely make he DVR head into the chronicles of history.

Says Wood in a recent interview “Would you rather try to remember to record a show, or would you rather just have everything ever made instantly available on demand?”

Roku expanded their markets to Canada and the UK this year.  While most people currently stream through a game console, there is a large percentage of households in the United States that wouldn’t opt for a gaming console because all the wish to do is stream and nothing more.  Currently, only 1 percent of U.S. homes use a device like Roku, but that is likely to change as older demographics start to feel comfortable with the new technology.  “Our customers are not early adopters.  They’re people who watch TV.  We put a lot of effort into making it really simple” says Wood.

What will truly make a streaming services comparison much more interesting is when online pay TV services like start-ups Skitter TV or Aereo become available across the United States.  Once people can actually stream network television without having to pay exorbitant cable TV subscription costs, we will likely see a widespread streaming adoption.

Roku has 400 entertainment channels available, and Skitter TV, one of the companies seeking to deliver live television online, is Roku compatible as well (however, you will not find Skitter on the Roku Channel Store yet – if you reside in one of Skitter’s markets, they will add the app to your Roku account).

While up until recently streaming has been predominantly used to watch movies on the internet, recent months have seen a huge shift toward more streaming of television shows.  Hulu Plus has made people excited about sitting down at the very beginning of season 1 of a show and mow through the episodes in marathon streaming bouts.

Sources:

http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2012/04/16/BUQ81O21JA.DTL&ao=all

http://www.homemediamagazine.com/digital-evolution/report-38-us-households-have-connected-tvs-26927

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Five Reasons Our Kids Shouldn’t Watch Disney Shows

Disney shows have certainly changed over the years. The Mickey Mouse Club no longer exists, and instead of happy-go-lucky tweens singing and dancing, Disney is now filled with inappropriate content and awful role models.  If you have a tween at home, they probably watch Disney. But before you think the network is harmless, you may want to consider giving your child an alternative network to watch. Here are five reasons why you shouldn’t let your child watch disney shows.

 

1. The outfits are too scandalous.

Has it ever occurred to anyone that nine year olds shouldn’t be wearing booty shorts or a face full of makeup? Yet it seems that on every Disney show, some young girl is dressed too sexy for her age. Thanks to the media, our daughters already have a hard enough time dealing with their image. They think they have to be skinny and have a big chest in order to be considered beautiful, and the trashy outfits being worn by kids on Disney isn’t helping them overcome this belief.


2. They force popularity down their throats.

Every single show on Disney is about the popular kids in school. What about the less popular kids? These shows idolize the idea that being popular is the only way to live, and this is not the case. Our children cannot grow up in a world where they are so determined to be popular that they will take any action in order to do so. We need to teach our kids to be who they want to be and that popularity doesn’t matter.

3. Where are the parents?

Only a handful of Disney shows ever include a parent. Most of the time, these kids walk around and do whatever they want without any type of parental guidance. While it’s understood that it’s a TV show, our kids are gullible, and if they see a star doing something without their parents permission, it will make our kids want to do it too. Disney should be building a child’s relationship with their parents by showing happy families on their shows. Instead, they are telling kids that there is no need for parental guidance.

4. There’s no moral to the story.

Disney shows used to teach kids how to be a better person or how to treat people right. Now, all the Disney shows are solely about entertaining. Kids don’t take away anything from these shows anymore other than a new word or a new hairstyle idea.

5. They contain inappropriate content.

There should not be any making out on Disney shows, and yet, kissing and makeout sessions are a large part of most Disney shows. Young girls do not need to think that going around and kissing boys is a good idea, especially at such a young age.
Don’t assume that Disney is a harmless network for your child to enjoy. It has definitely changed over the years, and not for the better.

Ashley Cole is a stay at home mother, avid gardener, and freelance writer who loves to focus on her passions. She always uses a grammar checker when she works to ensure her writing is clear and free of any grammatical errors. She can’t always remember grammar rules so she lets the grammar checker do it for her.




Everyone Put Down Your Weapons! Netflix PAC is Not Your Enemy

The headquarters of Netflix in Los Gatos.

The headquarters of Netflix in Los Gatos. (Photo credit: Wikipedia)

Collectively, Americans are getting fed up with the political process, and one of the biggest examples of corruption includes the billions spent on lobby platforms to buy politicians’ allegiance, often from the viewpoint of average people in favor of corporate greed.  So when word got out through hacktivist group Anonymous that Netflix was starting a PAC, and that we should all take up arms, or rotten tomatoes, or cancel our subscriptions en masse, of course social media exploded and all sorts of negative emotions flared up, turning people anti-Netflix overnight.

But let’s all take a deep breath here and examine some points.  We can start with a word from Netflix:

“PACs are commonplace for companies that lead a big, growing market and Netflix is no exception.  Our PAC is a way for our employees to support candidates that understand our business and technology.  It was not set up for the purpose of supporting SOPA or PIPA.  Instead, Netflix has engaged on other issues including network neutrality, bandwidth caps, usage based billing and reforming the Video Privacy Protection Act.”

Okay, so what does all that mean.  Let’s go point by point.

  1. SOPA and PIPA no longer exist, and will not be resurrected.  When it was first being vetted, these bills had preliminary support from many sides, including big corporations, because they did not understand all of the issues.  But rest assured the majority of corporations changed their minds once they understood the flaws.  Simplistically, the bills say that stealing copyrighted content is illegal.  Most Americans would agree with that statement.  The problem with SOPA and PIPA was in who was getting stuck with the bill of policing the internet.  Under a SOPA regime, Google and other heavy hitters on the internet would be forced to be the internet police, and that would cost them billions of dollars, which would basically kill the free internet as we know it.  My article Why Any Future Anti-Piracy Legislation Must Not Regulate Search Engines provides a comprehensive argument for why we have to be very careful how we deal with copyright violations.
  2. Net Neutrality – again, this is a very multi-faceted issue, but basically there are two sides.  One side says the internet needs to be an unlimited resource to everyone for one low fee, with no restrictions placed on it.  On the other side of the issue are internet providers, who wish to charge the heaviest internet users a higher fee.  This is, of course, an extremely simplistic explanation, and only touches on one of the many facets.  But rest assured, usage-based billing and caps on internet hurt Netflix, not help.  So they are not trying to butter up the internet providers while sticking it to consumers.  That would essentially kill their business.  They want the internet to be able to handle as much streaming as they can serve up, and for a reasonable price.
  3. The reformation of the Video Privacy Protection Act – this one is more controversial, in my opinion, than points 1 and 2.  I believe Netflix wants to be able to provide Facebook apps that, when put into effect, will broadcast to all your Facebook friends what you’ve been watching on your Netflix account.  Blockbuster tried this a few years back, and was
    Image representing Facebook as depicted in Cru...

    Image via CrunchBase

    sued, citing the VPPA.  But really, Facebook  is a social network.  Many of us already share this type of stuff.  And we don’t need to integrate our Netflix account with our Facebook account if we don’t want to.  Now, if Netflix wants to share what I’ve been watching without my permission, that’s another story.  We definitely need to let this one play out before we decide to get puritanical with Netflix.

The bottom line . . . while the internet is a wonderful place where there is lots of information available, it also can do a lot of damage.  It’s very important to read things, even from what we consider highly credible authority sites, as conjecture until we hear all sides of a story.  Much of what we read on the internet is people’s opinion.  In fact, this article is my opinion, and I might be proven wrong in the overall scheme of things.  But I for one am tired of Netflix being the corporate whipping boy.  Now excuse me, I’m going to go stream something. :)

If you would like to read reviews of the top services available, check out Streaming 411.




Game Consoles: Comprehensive Entertainment Hub For Your Living Room

The Xbox 360 wireless controller in white.

The Xbox 360 wireless controller in white. (Photo credit: Wikipedia)

If you are just starting out trying to figure out what is video streaming and how can it fit into your home entertainment options, one of the issues at the forefront is how do you get content from the internet onto your television screen.

There are a variety of ways to accomplish this.  One way is to purchase a streaming media player.  Roku has the most relationships with various content providers available, and needs to be factored into any equipment comparison.  Apple TV is another well-known name in terms of having a great interface but quite a bit less content choice.  Google TV technology is making headway in both set-top boxes as well as internet-enabled TV sets and blu-ray players, particularly as more than just a streaming media player, but also integrating smart television technology for greater functionality.

But if you have children, or if you just love playing video games, the gaming console just might be your best best in terms of being a comprehensive entertainment hub for your living room.  Streaming services providers like Netflix, Hulu Plus, Vudu, and to a lesser degree so far Amazon Instant Video, have been developing partnerships with the biggest names in gaming consoles, including Nintendo  Wii, Sony Playstation3, and Xbox 360, to support streaming their services right to your television set.

Game consoles such as the Wii, Playstation 3, ...

Game consoles such as the Wii, Playstation 3, and Xbox 360 (shown here) feature universal animated avatars. (Photo credit: Wikipedia)

The Xbox 360 has been particularly proactive in developing these relationships with various streaming providers to make their console incredibly versatile to consumers.  Some of the apps require a subscription to a service, but others are free downloads from Microsoft’s app store.  You can even stream ESPN content through Xbox 360 if you have an Xbox Live subscription.

Sony PS3 is also a good option, having apps available with the major streaming services, as well as the ability to stream NFL Sunday Ticket.

But future releases of game consoles will likely be marketed more as entertainment hubs, rather than gaming consoles that also stream content as an afterthought.  The interfaces will be designed with everyone in the family in mind, and the ability to bundle services together will likely come into play, bringing gaming consoles into a whole new level of versatility.

Comparing streaming services is a way to help familiarize yourself with video content sources.

Source:  Mobiledia.com

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3 Strikes Law in France Cuts Piracy, But No Boost in Sales

NEW YORK, NY - JANUARY 18:  Protesters demonst...

NEW YORK, NY - JANUARY 18: Protesters demonstrate against the proposed Stop Online Piracy Act (SOPA) and Protect IP Act (PIPA) outside the offices of U.S. Sen. Charles Schumer (D-NY) and U.S. Sen. Kirsten Gillibrand (D-NY) on January 18, 2012 in New York City. The controversial legislation is aimed at preventing piracy of media but those opposed believe it will support censorship. (Image credit: Getty Images via @daylife)

The entertainment industry has been very vocal for a long time about how piracy cuts into their revenues.  They even convinced lawmakers of the need for legal protection, which resulted in the SOPA and PIPA fiasco.  While most people would agree with the statement that piracy needs to be dealt with, the debate continues, with bi-partisan support among Congress and the heavy-hitters of the internet discussing new possible legislation on KeepTheWebOpen.com.

In the meantime, a new report has just been released by the French government about the effectiveness of their “Three Strikes” law.  The report claims that internet piracy has been cut in half in France based upon the consequences of the law.  However, TorrentFreak notes that what the report fails to mention is that the decrease in piracy did not translate into increased revenues for the copyright holders.

Meanwhile, a number of prominent music artists have been quietly pulling their content out of music streaming services because, it appears, piracy is actually good for them.  It seems that people who engage in peer-to-peer file sharing are also the biggest purchasers of their content.

So what’s the answer – let people keep stealing because copyright holders make more money in the long run?  Or deal with the piracy issue and still nobody (monetarily) wins.  There is an alternative, but the entertainment industry is still very distrustful that they will be able to continue to enjoy the huge profits of yesteryear.

Problem is, yesteryear is a blip, an anomaly.  It is highly unlikely that we will continue to enjoy the fat economic times indefinitely.  Economies ebb and flow, expand and contract.  The entertainment industry simply needs to recognize that while they got to enjoy some really profitable times post World War II through the 1990s, that’s not today.

I asked the question above – so what’s the answer?  Video streaming.  It’s convenient, cost-effective, and deals with the piracy issue.  It also has some added benefits.  Television shows have gotten a huge boost in Nielsen ratings after making past seasons available on streaming services.  It is likely to increase the number of seasons that the show is in demand as well, because new fans can “catch up” on shows made available from stream services like Hulu or Netflix.

An unskippable anti-piracy film included on mo...

An unskippable anti-piracy film included on movie DVDs equates copyright infringement with theft. (Photo credit: Wikipedia)

While streaming service subscriptions tend to put less money in the entertainment industry’s pocket, there are still other options that will maximize royalties.  Let’s go back to piracy and the musician example.  People who engage in piracy also tend to spend the most amount of money on content!  So, if you give them what they want legally, they will gladly still put money in your pocket.  But the entertainment industry is biting off it’s hand to save it’s foot, so to speak.

 

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2012 – The Beginning of the Decline of the DVD

8 track tapes - remember these?

8 track tapes - remember these? (Photo credit: Wikipedia)

Remember 8-track tapes, vinyl albums and laserdisk?  How about the Beta VCR?  While you can still currently purchase a dual DVD/VHS player, you will soon need to bid on them used on eBay if you still insist on watching your VHS tapes.  And now the handwriting is on the wall for DVD and blu-ray disc technology as U.S. consumers embrace streaming technology.

According to new research released by IHS Screen Digest, 2012 will likely mark the year of the beginning of the end, where these current technologies which have enjoyed a long ride in popularity will have to make their way into nostalgic discussions.

Piracy aside, it is predicted that the U.S. consumption of online movies & TV shows will reach 3.4 billion views and/or transactions this year, up 135% compared to 2011; at the same time physical video formats is expected to be about a billion less.

Sr. Analyst Dan Cryan of IHS says that this decline in physical consumption will be gradual, most likely reaching critical mass between 2016 and 2019, particularly in the music sector of the entertainment business.  Cryan asserts, though, that there is still money to be made in physical media for the next few years.  Physical formats are projected to capture $11.1 billion in revenues this year, compared to the $1.7 billion that streaming is expected to generate.  The shift is expected to be relatively gradual as consumers embrace the idea of valuing ownership of a digital file vs. a physical format.

But video streaming services will definitely put the proverbial nail in the coffin this year.  These services account for 94% of paid movie consumption in 2011.  2012 growth will drive the point home to entertainment companies that they need to transition their business models to accommodate this demand, as well as internet providers, who are tinkering with usage-based pricing caps to try and discourage consumers from utilizing so much bandwidth with the popular technology.

Still not convinced that you’re ready to relegate your DVD player to the back of the entertainment player in favor of a Roku player?  Conduct your own research by checking out streaming 411, a resource to help you determine which service(s) appeal to you.  Most of them give you a free trial period, as well as an easy way to cancel.  One service that is wildly popular is Hulu, which is known particularly for having entire seasons’ episodes available on demand.  Many people like to spend a rainy weekend watching several episodes in a row, rather than waiting for the next episode the next day or week.

Source:  DigitalTrends.com

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