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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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Comcast Stirring the Net Neutrality Pot?

Deutsch: Logo von Comcast English: Logo of Com...

Deutsch: Logo von Comcast English: Logo of Comcast Latina: Insigne Comcast (Photo credit: Wikipedia)

Comcast will soon be giving Xbox Live users a freebie on their data usage caps IF they stream Comcast On Demand videos through their Xbox 360.  Comcast gives their subscribers a 250 GB monthly data limit, but will not count any data toward this monthly allotment for certain scenarios.

This will likely not set well with net neutrality advocates, who believe that internet usage should be unlimited without prejudices like this.  With the Comcast scenario. if you want to protect your precious data, then you will continue to subscribe to Comcast TV bundles, rather than Netflix or other services that are much more affordable.

Comcast noted on their website that “Xbox content is being delivered over our private IP network and not the public internet.”  But net neutrality advocates lobbying for an open internet cite a concern that Netflix raised a few years back when the FCC was considering updating their policies that included exempting managed services of private IP-based services.  Netflix noted that “if left unchecked, the managed services category could engulf the Commission’s open internet policies altogether,” rendering them meaningless in effect.

As entertainment subscription services transition from DVD by mail subscriptions to on demand streaming service subscriptions, this issue will certain be brought to the forefront as TV subscription providers like Comcast are worried about a mass exodus due to high priced bundles that leave consumers scratching their heads and wondering how to justify the monthly cost in their already strained budgets.

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Hulu Plus CEO Reflects On 2011

On the official Hulu blog today, CEO Jason Kilar reflected on the performance of Hulu, and looked forward to the upcoming year in terms of growth, content expansion, and innovation.  Kilar reported that his empire grew the business 60% from prior year, to approximately $420 million.  The paid service currently has over 1.5 million subscribers, and their content offering grew more than 105%.  Additionally, the content offering for the free Hulu service grew 40%.  What customers are really interested in, of course, is the streaming service providers’ library.  Kilar noted that Hulu Plus is “the only online video subscription service that offers current season content from 5 of the 6 largest U.S. broadcast networks, with shows from The CW and Univision added this past quarter.”  Popular new series like Misfits, Once Upon a Time, Revenge, Grimm, Up All Night, Terra Nova, Una Familia Con Suerte, New Girl, The Secret Circle, Community, Ringer, and Hart of Dixie were included as new content for 2011.

Hulu also made great strides in developing apps for users to access Hulu’s content on a wide variety of devices, including Kindle Fire, Xbox 360, the Nook Tabet, LG, Vizio and Panasonic television sets, several blu-ray playes, and select Android smartphones.

Hulu is the only provider that has limited advertising in their content, a point which actually doesn’t seem to be an issue for it’s customers, especially with the ever-expanding content.  Their goal is to be “relentless in our mission to be the most effective video advertising service on the planet, which we believe is a function of respecting users and empowering them with tools like Hulu Ad Swap and Hulu Ad Selector.”




Copyright Nightmare in New Digital Age

A great article published by the New York Times on November 25, 2011 by Jeffrey Rosen discussed a new book written by Robert Levin entitled “How Digital Parasites Are Destroying the Culture Business, and How the Culture Business Can Fight Back.”   Digital parasites, asserts Levin, like downloaded music, aggregated news, streamed video, and e-books are destroying traditional business models of journalism and various media avenues like music, movies & television.  Technology activists demand that “Information wants to be free, because the cost of getting it out is getting lower and lower.”  There is the debate on whether these media-related industries have simply failed to adjust their expectations that their contributions should be handsomely rewarded, while a new generation of demanding, content hungry consumers want everything for free.  Ever jump onto Yahoo Answers?  The most asked question is “how to I watch “   you fill in the blank    ” for free?  On July 7, 2011 the New York Times wrote an article about how internet providers in the U.S. have signed a voluntary agreement to help these embattled industries with piracy issues.  When someone downloads a copyrighted piece of content on the internet illegally (whether they know it or not), the internet provider will contact the account owner.  If the practice continues, the provider will slow the connection speed to a snails pace.  It will be interesting to watch how things evolve in this mad dash to consume information online.




Is Video Streaming Right For You?

Understanding the technology behind video streamingcan help you determine whether or not a subscription, or perhaps simply an on-demand, a la carte rental or purchase option is a better choice.  For starters, there are two main ways that video content is delivered to your device – through actual streaming from a streaming service or various live portals on the internet, and through the download of a compressed file that you play once enough of the file is downloaded.  Understanding the differences between streaming vs. download can be confusing.  Streaming can be on-demand or live, and is facilitated through a streaming service, which is simply specialized software that interacts with your media player to deliver the content.  For streaming to be supported, you will need adequate bandwidth (more than 3 Mbps advised) and software/media player that will be able to communicate with the streaming server.   Downloads are delivered mainly through purchase, or through free content that was meant to be kept and saved on your computer.  People often confuse the two, understandably, because the end result is watching a movie on your computer or internet-enabled device.

For more information about this technology, including providers you can subscribe to in order to watch movies or TV shows, plus how to set up your home system, check out Streaming 411.