09/22/15: Apple App Store hit by cyber attack; Middling results for digital at Emmys; Jaunt VR raises $65 million in Series C funding



CYNOPSISDIGITAL
09.22.15

Good morning. It’s Tuesday September 22, 2015, and this is your first early morning digital briefing.

TODAY’S TOP NEWS

 
For the first time, a major cyber attack successfully targeted Apple’s App Store.  A number of Chinese developers accidentally used XCodeGhost, a counterfeit, malware-infected version of Apple’s Xcode app-building software. The program steals user information, and was embedded in hundreds of apps, mostly in China. Affected apps include Angry Birds 2 and the Tencent-developed WeChat, which has over 500 million users. (Find a larger list of affected apps posted at Business Insider, courtesy of security firm Palo Alto Networks). Tencent says that, while WeChat version 6.2.5 is affected, versions 6.2.6 and greater aren’t. Apple has removed all affected apps from the App Store. Many of the developers of those apps will be issuing updated versions; if you’ve already downloaded the affected apps, experts say it’s important to update them ASAP and change your Apple account password.
 
An unexpected glitch delayed its release by a week, but Apple has released its watchOS2 operating system for the Apple Watch. Among other updates, the OS offers developers the ability to write apps tailored to the watch’s features, including its heart rate sensor and microphone. Wearers will now be able to use the watch to respond to emails, add up to 12 friends to their contacts list, and use a Discover Card to make payments through Apple Pay.
 
Sunday was a pretty good Emmy night for Amazon – less so for Netflix. In addition to its three wins at the Creative Arts Emmys back on September 12, Amazon’s Transparent snagged two wins Sunday: Lead Actor in a Comedy Series (Jeffrey Tambor) and Directing for a Comedy Series (series creator Jill Soloway). Netflix was also a three-time winner at the Creative Arts Emmys, but nabbed only one win Sunday, when Orange Is the New Black’s Uzo Aduba’s won Supporting Actress in a Drama Series. It should be noted that Amazon received 12 total nominations, whereas Netflix received 34.

 

OTT + SVOD

 
Something else interesting happened 67th Annual Emmy Awards: host Andy Samberg broadcast a phony username and password to what he jokingly claimed was his HBONow account…Wait, what’s that? It wasn’t a joke? It was a real, 100% functional account? He can do that? Well, as Samberg pointed out, HBO CEO Richard Pleper has said he doesn’t care if users share their HBO SVOD account info. Though perhaps national television wasn’t what he had in mind.     
 
"Engagement isn’t about ‘likes’ or one-off interactions; it’s about a genuine two-way connection between a brand and a person," says Havas Worldwide NYC Chief Strategy Officer Tim Maleeny. "Ultimately, if your brand can’t answer every consumer’s question – ‘Why should I care?’ – then you’re only talking to yourself, no matter how much money you spend.” This is just one insight from Maleeny, who’s keynoting the Cynopsis TV Conference on October 15th. To hear more from him as well as speakers from Deutsch, Weight Watchers, and more, register here.

NEW PROGRAMMING + DEALS

 
Last week, Endemol Beyond USA, the digital content arm of production company Endemol Shine North America, partnered with Just Entertainment Studios and the style media company Nylon for an exclusive multi-platform partnership. The deal includes a “first-look” development deal – Endemol and Just Entertainment will have the right to develop series and video projects using Nylon’s content. The deal also includes a long-form series about Nylon, as well as cross-promotion for Endemol Beyond USA and Nylon programming using each other’s social channels and outlets, including YouTube and Facebook.

CONTENT PROGRAMMING

 
More Endemol news: Princess Productions, a division of Endemol Shine Group, is producing a telethon-style event to benefit the global charity Stand Up to Cancer. The U.K.’s digital talent is turning out to help: Caspar Lee, Joe Sugg, Dan Howell, Jim Japman, Marcas Butler, Phil Lester, and Pixiwoo – along with hosts Niki’n’Sammy, Oil White, Stuart Ashen, and Tomska – will be among those participating. The event will livestream for 12 hours, from noon to midnight, on October 17; viewers will be encouraged to pledge donations to Stand Up to Cancer.
 
Orphans Productions debuted the second season of Adultish, a web series about a 28-year-old female blogger living in New York City. The series is available on the Adult-ish Web Series YouTube page, as well as adultishwebseries.com.

DIGITAL CONTENT CREATORS

Vine stars are none too happy with Facebook, according to The Wall Street Journal. Many Viners grumble that the social media giant hasn’t prevented users from posting their videos without permission. (There are even Vine compilation pages with tens of millions of followers.)  Unauthorized sharing can cost Viners a lot of money. Vine doesn’t advertise, so Viners earn money through product mentions and branded videos. Many of them feel that when users watch their videos on Facebook, it lessens the growth of their Vine followings. As stand-up comic and Vine creator Arantza Fahnbulleh puts it, “followers get me brand deals.”


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VIRTUAL REALITY AND VC FUNDING
 

Yesterday, Cynopsis Digital noted that Jaunt VR’s Series C funding round clocked in at over $50 million. Well, that was the unofficial report – the official numbers are in, and it turns out the company raised about $65 million. It was the largest-ever funding event for a VR company, and Jaunt has raised over $100 million to date. Top Series C investors included Walt Disney Co., Evolution Media Partners, and China Media Capital.
 
Epic Games wants to introduce you to the magic of virtual reality. The video game development company has released the first in a planned series of YouTube documentary shorts. Using a combination of VR footage and interviews with VR users, the films are designed to drum up enthusiasm for virtual reality. One choice quote from an interviewee: “Your brain’s an idiot, and VR fools it.” And it would seem that people love to fool their brains: As VentureBeat notes, analysts predict that the VR and augmented-reality markets will hit $150 billion by 2020.
 
Your guilty pleasure is going mobile. Univision is launching UniNovelas, a new telenovela app. The launch coincides with the premiere of Antes Muerta Que Lichita, a new telenovela starring Maite Perroni. Among other features, the app offers users the chance to win prizes by making predictions and responding to real-time polls.

Netflix announced that it will air its first cartoon ever produced in Latin America. Las Leyendas, from Mexico’s Anima Estudios, will debut globally on the streaming service in 2017.  The series is based on a trilogy of kids’ films created by Anima, as well as characters created by producer Ricardo Arnaiz. The series will center on a teenaged boy who can communicate with monsters and ghosts. Netflix currently boasts over than 65 million subscribers in Latin America.
 
In December, digital platform Interactive One (iOne) acquired GlobalGrind, a Russell Simmons-founded video site aimed at a racially and culturally diverse millennial audience. The site re-launched 12 days ago. Michael Skolnik, GlobalGrind’s Editor-In-Chief, spoke with Cynopsis Digital. Millennials, he said, are culturally and racially diverse, but increasingly share common values. “We believe at GlobalGrind…that millennials are a multiracial generation – but singular culturally,” he said. Skolnik says upwards of 70% of GlobalGrind’s audience watches on mobile devices. The site’s newest original video series is Global Grind’s Top Entrepreneurs, which premiered September 10. Upcoming series include Before the Album Drops and Bestie.
 

RESEARCH
 

As mentioned a few times now, the 67th Annual Emmy Awards are in the books. Wondering which moments fared the best on social media? Check out the top five trending moments on Twitter and Facebook:

Facebook:
1) How to Get Away With Murder’s (ABC) Viola Davis wins lead actress in a drama
2) Game of Thrones (HBO) wins outstanding drama series
3) American Crime’s (ABC) Regina King wins supporting actress in a limited series or TV movie
4) Mad Men‘s (AMC) Jon Hamm wins lead actor in a drama
5) Tracy Morgan makes a surprise return and presents final award

Twitter:
1) Viola Davis wins lead actress in a drama
2) Game of Thrones \wins outstanding drama series
3) Veep (HBO) wins outstanding comedy series
4) Jon Hamm wins lead actor in a drama
5) Orange Is the New Black‘s (Netflix) Uzo Aduba wins supporting actress in a drama
 
Digital video use is skyrocketing. Thanks to Nielsen, we have an idea of just how much. In its 2Q15 “Total Audience Report,” the company found that online video use increased 19% from 2014. That includes a significant spike in smartphone and tablet use (an average of 11 minutes of weekly video-watching in 2014, vs. 15 minutes this year). The largest percentage increase in digital video use took place late at night and during early morning. Nielsen tracked smartphones, tablets, and desktop computers used by adults aged 18 and up. Full report here.
 

 
More from Nielsen – some informative Twitter data from the week of September 14-20. Highlights below:
 
Most-Tweeted Minutes from the Top 3 Series and Specials:
 
September 16: 16,900 Tweets were sent at 9:08p EST about the September 16 CNN Republican Debate following Carly Fiorina’s response to Donald Trump’s previous comments about her appearance.
 
September 20: 12,600 Tweets were sent at 10:47p EST about the 67th Emmy Awards after Viola Davis won the Emmy for Lead Actress in a Drama.
 
September 14: 4,300 Tweets were sent at 11:13p EST about Dancing with the Stars following Hayes Grier and Emma Slater’s performance.
 
This week, the CNN Republican Debate topped the Nielsen Twitter TV Ratings Weekly Top Ten Series and Specials list with 2 million event-related Tweets that were seen by a Unique Audience of 9 million people. In sports, NFL Football: Dallas Cowboys at Philadelphia Eagles topped the list with 1 million event-related Tweets sent in the U.S. that were seen by a Unique Audience of 7 million people.
 
The full NTTR Weekly Top Ten lists, ranked by Unique Audience, are here. (Source – Nielsen.)
 

And for a quick guide, see a few terms defined below: 
 
Tweets: Tweets ascribed to a linear TV episode or sports event.
Unique Authors: Unique Twitter accounts that have sent at least one Tweet ascribed to a specific TV episode or sports event.
Impressions: The number of times any Tweets ascribed to a TV episode or sports event were seen.
Unique Audience: The total number of distinct Twitter accounts accruing at least one impression of one Tweet ascribed to a TV episode or sports event.

 

EXECUTIVE MOVES

 
Variety reports that Will Keenan, who served as president of Endemol Beyond USA from November 2013 until last month, has landed a new gig: Keenan is headed to the startup company Streamup.
 
NBCUniversal has created a new position and named its chairman: Cesar Conde, previously Executive Vice President at NBCUniversal, will serve as Chairman of NBCUniversal International Group and NBCUniversal Telemundo Enterprises. Telemundo Enterprises includes the Telemundo Network, NBC Universo Cable Network, Telemundo International, Telemundo Local Stations, Telemundo Digital Media and Emerging Business, and NBC Deportes. Meanwhile, Jon Uva, who previously oversaw the group, will take on an advisory role, working on NBC Deportes’s move from Hialeah, Florida to the NBC Sports Group’s broadcast facility in Stamford, Connecticut.


A CYNOPSIS MESSAGE


CYNOPSIS TV CONFERENCE on 10/15 sponsored by Reach Engine
What’s Popping in Programming

As always, content still rules. Top programming & production execs will plunge into today’s biggest draws across screens; examining which of today’s trends are likely to still be around in another year, & what’s bubbling up on the sidelines.
YOU’LL HEAR:
– The latest consumer viewing trends, including on-demand & live viewing
– Creating DVR-proof event television
– 21st century reimaginings of the miniseries



 

DIGITAL SPOTLIGHT
 

You know someone’s a rare comedic talent when even a brain injury can’t make him any less funny. Entertainment Tonight’s YouTube page has a portion of Tracy Morgan’s emotional­and hilarious­speech at Sunday’s night’s Emmy Awards. Check it out here.

See you tomorrow,
David Teich
09.22.15

Roberta Caploe: Associate Publisher @robertacaploe
Diane K Schwartz: Senior Vice President, Media Communications Group

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