Good morning, it’s Friday, January 7, 2011, and this is your first early morning digital briefing.  If you would like to read this or any other Cynopsis edition online, click here. 

If you’re looking to own a piece of the most successful website in the world you’ll have to wait, but perhaps not much more than a year. Feeling pressure from the SEC and quickly approaching the 500-shareholder limit imposed on private companies, Facebook is looking at going public by April of 2012, according to a private placement memo obtained by the WSJ. Meanwhile, professionally themed social networking site LinkedIn will finally get around to filing its own IPO in 2011 and has already selected its underwriters for the process, reports Reuters. Social gaming giant Zynga is also considering listing publicly this year.
 

 
CBS has agreed to provide content to Samsung Mobile‘s Media Hub service for use on its Galaxy S smartphones and the Galaxy Tab tablet PCs. Media Hub users will be able to purchase single episodes or full seasons of several hit dramas and reality shows including CSI, NCIS, The Good Wife and Survivor a day after they air, with full episodes priced around $1.99. Samsung has also struck deals with MTV Networks, NBC Universal, Paramount and Warner Bros. Digital Distribution to provide movies and current shows for the platform.
 
Partners Sony, Discovery Communications and IMAX officially unveiled its 3NET 3D television network slated to launch as a 24-hour channel sometime in early 2011. The venture claims to have world’s largest library of 3D television content yet assembled. No carriage deals were announced.
 
Foursquare and MTV launched a new badge for last night’s season premiere of Jersey Shore. Users who follow MTV on Foursquare will be awarded for checking into a gym, tanning and laundry venue within a 7-day period.
 

 
Toronto-based comedy channel Bite TV, the first channel launched by cross platform digital broadcast service GlassBOX TV, picked up the web series Papillion, starring Kevin McDonald from Kids in the Hall fame. The show, about a hapless crew who work for a discount airline out of Windsor, Ontario, will be featured first on bite.ca, then broadcast on Bite TV in Canada, before being offered on Babelgum in the U.S.

A CYNOPSIS MESSAGE FROM NATPE 2011

 
Yahoo announced several improvements to its Connected TV platform, which brings more than 100 internet-style interactive apps to integrated televisions. CBS, HSN, ABC, Ford, Mattel and Showtime are participating in a six-month “broadcast interactivity” trial allowing viewers to request more info., play games, purchase featured items and view supporting photos and videos via their remote controls. Yahoo’s Connected TV is also demonstrating three-screen connectivity (tablets, mobile phones and TVs) this year is currently in about 6 million homes.
 
As promised, House Republicans launched their volley on Wednesday to strike down the FCC’s new net neutrality regulation, passed on Dec. 21 along party lines. The bill, introduced by Rep. Marsha Blackburn (R-Tenn.) and backed by a majority of GOP members of the House Energy and Commerce Committee, reserves the power to regulate the internet for Congress.
 
Rovi has unveiled a new suite of cloud-based web services designed to enable the rapid creation of entertainment products on multiple platforms and devices including internet connected TVs, tablets, mobile phones, PCs and set-top boxes. The solution includes a video advertising component that will be utilized by Samsung, full metadata, recommendations, search, media recognition, and user and device management capabilities.
 

 
Home Entertainment revenues slid to $18.8 billion in the U.S. last year, down from $19.4 billion in 2009 and representing the 6th straight year of decline, according to the Digital Entertainment Group‘s annual report. Blu-ray sales and digital distribution spending were bright spots, with Blu-ray player penetration increasing 62% to 27.5 million homes and spending on discs climbing 68%. Digital sell-through sales (including broadband and VOD sales) increased 19% to $2.5 billion on the year, but failed to make up for the shortfall in VHS and DVD sales.
 
U.S. CONSUMER HOME ENTERTAINMENT RENTAL & SELL-THROUGH SPENDING  (in billions)
Year VHS/UMD DVD BD/Hi- Def Digital TOTAL
1999   $12.2    $1.1     $0.0      $0.6   $13.9 
2000   $11.4    $2.4     $0.0      $0.7  $14.5 
2001   $10.9    $5.3     $0.0      $0.7  $16.9 
2002     $9.6    $8.6     $0.0      $0.7  $19.0 
2003     $6.9   $13.1    $0.0      $0.7  $20.7 
2004     $4.4   $16.7    $0.0      $0.7  $21.8 
2005     $2.1   $18.9    $0.0      $0.8  $21.7 
2006     $0.4   $20.2    $0.0      $1.0  $21.6 
2007     $0.1  $19.7     $0.3      $1.3  $21.4 
2008     $0.1  $18.4     $0.9      $1.6  $21.0 
2009*  $0.0  $15.8     $1.5       $2.1  $19.4 
2010     $0.0 $14.0      $2.3       $2.5 $18.8
Source: Digital Entertainment Group *The DEG re-stated its historical figures based on 2009 revised reporting from Rentrak’s Home Video Essentials and studio sources.
 
ComScore also has Google’s Android ranked as the #2 smartphone platform as of the end of Nov., gaining 6.4 percentage points over the past 3 months to capture a 26% market share, second only to RIM (33%). Apple’s market share rose slightly to 25% while both Microsoft (9%) and Palm (3.9%) fell. Device manufacturer Samsung ranked as the top OEM with 24.5% of U.S. mobile subscribers, up 0.9 percentage points from the three month period ending in August.
 

 
One of the cooler concepts unveiled at CES this week is Motorola Mobility‘s hybrid “Atrix 4G,” which is both an 11.6-inch screen laptop and a robust 4-inch display smartphone that docks into the back of the unit for easy syncing. The “webtop” runs on Google’s Android 2.2 OS, features a full-size keyboard and ships with its own software that allows you to access the phone’s data, make calls and port photos, music and videos over to a broadband connected television. No word yet on when we can expect to see it released.
 
Motorola also unveiled a new tablet computer dubbed the “XOOM,” running on the new Android 3.0 Honeycomb operating system designed specifically for tablets. It features a 10.1-inch touchscreen, a 1 GHz processor, a front facing camera for video conferencing and a 5 megapixel rear-facing HD camera for taking pictures and shooting video.
 
Panasonic announced a cloud-based TV service called Viera Connect that will run on 15 of the company’s new HDTVs. The service, which is expected to be available early this year in the U.S., will include live sports, access to Hulu Plus, AccuWeather.com, NBA Digital’s Game Time app and multiple social networking applications.
 
Going after the business sector, Skype unveiled a new group video calling feature offered as part of a premium subscription service that will start at $4.99/day or as little as $8.99/mo. (Skype users who sign up for group video calling during the first month it’s available will receive a 33% discount on 3 and 12-month subscriptions.)
 
Apple’s Mac App Store officially opened for business offering paid or free apps in disciplines including Education, Games, Graphics & Design, Lifestyle, Productivity and Utilities. Mac is offering developers the same 70% split of revenues featured on the iPhone/iPad App Store.
 

 
AOL tapped Eric Singleton to serve as SVP/Technologies within AOL’s Paid Services division. He will report to Alex Gounares, AOL’s EVP and Chief Technology Officer, and will be based in Dulles, VA.
 

 
Digital sales of movies and other premium content have long been slowed by the draconian DRM practices of Apple and its lack of compatibility with other devices. (It takes more than a leap of faith to pay $10 for a movie you may not be able to enjoy on your other gizmos.) A Hollywood studio-backed effort to make digital movies you purchase available for multiple devices on “the cloud” will see the light by the middle of this year with more than 60 media and technology partners participating. The DECE consortium, headed by Sony Pictures Entertainment President Mitch Singer, has named the effort UltraViolet and the list of companies involved includes every major studio and CE manufacture besides Apple and Disney, who have long been partners on iTunes and are reportedly working on their own cloud-based digital locker solution. Members including Fox, Best Buy, Microsoft, Samsung and Sony, have released technical specs for a common file format and a licensing program that developers can utilize to begin building applications and for PCs, Blu-ray players, mobile phones and tablets and web connected TVs. One complaint I’ll levy from the get go is that DECE is saying you’ll be able register up to 12 devices that can share UltraViolet content. Why limit it – isn’t that the whole point?
 
Correction: The NATPE conference was incorrectly referred to as NAPTE in yesterday’s edition. We regret the error.

Later –
Wayne Karrfalt for Cynopsis Digital
01.07.11

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Mike Farina – VP/Business Development & Sales – 203-218-6480 / mike@cynopsis.com
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