Cynopsis: DIGITAL
06/17/11

Good morning, it’s Friday, June 17, 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. 

How fast is a fast enough broadband connection? Comcast CEO Brian Roberts gave cable show goers an idea of what the company’s HFC network is capable of on Thursday, demonstrating its 1 gigabit/sec. downstream speeds by downloading the entire current season of NBC’s 30 Rock in a minute in a half. Mr. Roberts also unveiled Comcast’s next-generation IP video platform, Xcaliber, which promised to leverage cloud computing to deliver a truly interactive program guide and apps that can be added to the platform without years of back office work. The cloud-based architecture will give customers access to more content on more devices, offer greater customization features (aggregating DVR recordings, favorite shows and recommended content under the “MyTV” tab) and speed integrations with such aforementioned applications as Facebook and Skype, according to Roberts. The features are currently being tested in Augusta, GA with no national roll-out date yet set.
 

 
Comcast announced it is more than tripling the amount of VOD titles it is carrying from Starz Entertainment to include 800 titles of Starz, Encore and Movieplex in standard def and 520 titles in HD.
 

 
Microsoft released a new Kinect for Windows software development kit as promised, geared for the company’s Windows 7 operating system. The new Kinect SDK offers developers a set of tools to build applications and games for PCs using Microsoft’s popular motion-sensing controller, which launched for the Xbox 360 gaming console last Nov. and became one of the quickest digital devices to sell 10 million units.
 

 
Traditional TV ad services firm DG has acquired MediaMind Technologies (formerly Eyeblaster) for $414 million in cash. MediaMind, which creates rich-media ad campaigns for advertisers, will give DG a strong digital presence overseas as the New York-based firm maintains 37 sales offices representing 64 countries. Upon closing, Gal Trifon, President and CEO of MediaMind, will serve as DG’s Chief Digital Officer, leading DG’s online advertising business.  Additionally, Ofer Zadikario, MediaMind’s Chief Solutions Officer, will join DG in the same position. DG also announced a partnership with file transfer platform SmartJog to establish a global platform to distribute content to over 70 countries and 5000 stations worldwide.
 
Social marketing platform Vitrue announced a partnership with ecommerce software provider Shopigniter to combine the companies’ offering to support a fully transactional Facebook Store. Brands including Samsung, Best Buy, AMEX and McDonald’s will be able to offer their clients access to tools that complement the Vitrue SRM platform that can also be integrated with existing eCommerce systems.
 
Video ad network YuMe acquired UK-based mobile video ad company Appealing Media, signaling its entry into the European market. Appealing Media has executed campaigns for clients including ESPN, IPC Media, Bauer Media and Universal McCann across native apps, touch web and mobile web properties.
 
The Mobile Marketing Association (MMA) has formed new committee to better define standards and measurement methodologies that govern the practice of mobile analytics and the evolution of mobile into a marketer’s eCRM efforts. The committee will also focus on creating definitions and guidelines for data collection.
 

 
The U.S. Senate Judiciary Committee approved a bill on Thursday making it illegal to stream copyright-protected video over the internet with penalties ranging up to 5 years in prison involving multiple instances. (The total retail value of “performances” to its owner must exceed $2,500 or the value of licensing of the works must exceed $5,000.) The Commercial Felony Streaming Act, supported by the Obama administration and a broad array of industry groups, including the American Federation of Musicians (AFM), AFTRA, Directors Guild of America, IATSE and SAG, is the second bill in 3 weeks passed by the committee, following the approval of the PROTECT IP act in May. The measure is expected to head to the floor of the Senate for a vote next week.
 
comScore announced a partnership with GfK MRI to develop a new product offering that links Americans’ online media habits with print readership and other media consumption data, including product and brand usage. The data will presented in a new index known as comScore-MRI Fusion.
 
Experian’s panel-based Hitwise measurement service is also rolling out new features including real-time deliverable dashboards and publishing data modules that aggregate complimentary information from such sources as Omniture, Blogger, iGoogle.
 

 
Nielsen has identified a new trend that bucks the idea that new platform viewing is additive with traditional TV viewing. Until last fall, Nielsen data consistently indicated that the heaviest media consumers display such habits across all platforms. A subset of consumers from television and internet homes emerged over the first 3 months of the year that defies this notion, with the lightest traditional television users streaming significantly more internet video and the heaviest streamers, particularly 18-34 year olds, under-indexing for traditional TV viewership. Overall, TV viewing increased by 0.2% from a year ago to 158 hours and 47 minutes/month, while internet video viewing jumped 35% to 4 hours and 33 minutes/month. Watching on mobile devices such as smartphones rose 20% to 4 hours and 20 minutes a month. The company did not make a correlation between increased online viewing and “cord cutting.”
 
Reporting online video viewing for the month of May, Nielsen said Americans set another record by streaming over 15 billion videos for the month. Total online viewers also increased by nearly 3% from April to top 145 million unique viewers. MSN, Hulu, AOL and Fox Interactive Media all grew their audiences by over 10% for the month. MSN/WindowsLive/Bing and AOL also increased the amount of streams they delivered by over 25% month-over-month. Hulu was second only to YouTube in total streams (852 million). The ave. Hulu user spent 4 hours, 43 minutes viewing Hulu videos in May. Hulu was followed by Ustream.tv and Justin.tv (both of which replayed their Royal Wedding coverage in May) in this category, with their time spent increasing a heady 61% and 55% month-to-month, respectively.
 
Top Online Video Destinations by Total Streams  (May 2011, U.S.)
Video Brand                    Total Streams (000)  MOM % Change in Streams
YouTube                              8,860,520               1.3%
Hulu                                      852,173             12.1%
VEVO                                    414,615               0.3%
MSN/WindowsLive/Bing          266,712              26.9%
Yahoo!                                  193,344              -5.9%
Dailymotion                           150,340             -4.6%
Turner-SI Digital Network       149,102              4.5%
AOL Media Network                148,727            25.2%
Facebook                               135,168            -8.3%
CBS Entertainment Websites    120,707           12.8%
Source: Nielsen
 
Top Online Video Destinations by Time per Viewer (May 2011, U.S.)
250K Unique Viewer Minimum
Video Brand       Time per Viewer (hh:mm)  MOM % Change in Time
Hulu                    4:43                                -8.8%
Ustream.tv           3:40                               61.4%
Justin.tv               2:35                               55.3%
YouTube               2:31                               -3.3%
Megavideo            2:29                             -14.8%
Cwtv.com             2:17                              11.5%
ABC Family           2:04                              28.4%
Lifetime Digital     1:57                               12.4%
CBS Entertain.     1:12                                -8.7%
MTV Networks      1:11                                 6.7%
Entertain. & Games
Source: Nielsen

 
Mitsubishi unveiled a 92″ 3D DLP flat panel set, the Home Cinema TV, the latest addition to its Diamond TV series, equipped with Bluetooth, 16-speaker Dolby Digital 5.1 surround sound and the company’s Stream TV platform, powered by Vudu. It will retail for $6,000 beginning next month.
 
Sony has expanded its “Music Unlimited powered by Qriocity” app to the Android platform in the U.S., France, Germany, Ireland, Italy, Spain, the U.K., Australia and New Zealand. Already available via the PS3, PSP and desktop PC, the app offers unlimited access to over 7 million licensed ad-free songs from all 4 major music labels for as little as $4/month depending on the features you want.
 

 
Barbara Cipolla was tapped by Digitas as EVP, Chief Growth Officer. She reports to Seth Solomons, and is charged with leading business development efforts for Digitas USA. 
 
Samsung Mobile has named Todd Pendleton as its new Chief Marketing Officer. He will be based in Dallas and will report directly to Samsung Mobile President Dale Sohn.
 
YuMe named Tim Laehy as its new CFO. Tim previously served as CFO of several technology companies, including CloudShield Technologies and Covad Communications.
 
Don Morrison, COO of BlackBerry maker Research in Motion, is on medical leave and will return later this year, according to a WSJ report. Former RIM COO Larry Conlee, who retired in 2009, has temporarily returned as a Special Advisor in his stead.
 
Clash Media has appointed Kevin Van Lenten to the post of VP/Media. Based in New York, NY, Kevin will be responsible for publisher relations, as well as lead the development of Clash Media’s proprietary publishing websites.
 
Best Buy’s Venice, California-based online tech review service Tecca has added Rich Battista, former president of National Cable Networks for Fox and Gemstar TV Guide International, to its Board and appointed Shannon Ludovissy, former GM of Rotten Tomatoes, and Assaf Tarnopolsky as Co-Presidents. Barb Dybwad, former Mashable and Engadget Senior Editor, has also joined as Head of Content.
 

 
IBM quietly celebrated its 100th birthday yesterday with little fanfare – the company that invented the barcode and the mainframe computer gets little attention these days in the wake of the Apple’s, Facebook’s, Google’s and Groupon’s of the world. But if you want to take a little walk down memory lane, take a look at this nicely composed interactive timeline on IBM.com, charting the company’s progress from the 1890’s to the present. An early rallying cry, coined by IBM precursor Computing-Tabulating-Recording Co. executive Thomas J. Watson Sr., was “THINK,” which appeared in banners, plaques and company materials for decades. Check out the technological advances that IBM has been responsible for over the decades, with inventions such as the hard drive or the selectric typewriter yielding 5 Nobel Prizes, two Japan Prizes, 6 Turing Awards, 7 U.S. Medals of Technology and 5 U.S. Medals of Science. One could almost envision a Mad Men-inspired show set in the early days of Silicon Valley. Almost.
 

A CYNOPSIS MESSAGE

Later – Wayne
 Wayne Karrfalt for Cynopsis Digital
06.17.11

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