Cynopsis: DIGITAL
05.17.13

Good morning. It’s Friday, May 17, 2013, and this is your first early morning digital briefing.

Time Warner Cable is one of two pay-TV companies considering an investment in Hulu, according to The Wall Street Journal. Time Warner’s bid wouldn’t be an outright purchase, but more of a minority stake to join the trio of media conglomerates currently at the head of Hulu: Disney, News Corp., and Comcast. If you’re keeping track, this brings Hulu’s dizzying list of potential suitors to eight, including Amazon, The Chernin Group, Guggenheim Digital Media, Yahoo, Disney or News Corp.

Break Media is teaming up with veteran film producer Lorenzo di Bonaventura (Transformers, GI: Joe) to develop Higher Power, a sci-fi thriller that will serve as Break’s first feature-length film and di Bonaventura’s first foray into digital content. “This move expands our capabilities and allows us broader options for different distribution models,” said Greg Siegel, SVP/Entertainment Development at Break Media. To that end, the plan is to distribute Higher Power in “chapters” online as well as in its full-length format via more traditional distribution platforms. di Bonaventura and Siegel are producing alongside Break Media’s Evan Cholfin. Deborah Aquila is casting the project, which is slated to begin production in July. The script comes from Julia Fair, and the film will be directed by Matt Santoro (VFX specialist on films like 300 and X-Men Origins: Wolverine).

INDMUSIC, a multichannel network for independent musicians on YouTube, has inked partnerships with nine record labels and management companies to bring its total number of YouTube channel partners to 221 and total view-count to more than 1.4 billion. The labels — TMWRK, Reach, Decon, IAMSOUND, Paper Garden, Top Shelf, Mixmash, Temporary Residence Limited, and Lucky Me — represent acts such as Diplo, A-Trak, and Explosions in the Sky, expanding INDMUSIC’s reach in hip-hop, EDM, indie rock, folk, and shoegaze content on YouTube.
In Other Words: INDMUSIC will oversee rights, distribution, and monetization for the labels’ full rosters, something the network is quite an expert on (INDMUSIC monetized the “Harlem Shake” meme when it exploded on YouTube).

Amazon has expanded its content licensing deal with NBCUniversal to exclusively offer Grimm, Suits, Covert Affairs, Hannibal, and Defiance on Amazon Prime Instant Video. Prior seasons of Grimm, Suits, and Covert Affairs are available immediately, while access to the first seasons of NBC’s Hannibal and Syfy’s Defiance will come later this year and early next year, respectively. The deal also covers access to other NBCUniversal TV properties, including Smash, Alphas, Eureka, and Warehouse 13. Children’s shows Curious George and Land Before Time will also be available via Kindle FreeTime Unlimited, an all-in-one content service that offers movies, TV shows, books, games, and apps.

Cambio, an entertainment property from AOL, is partnering with Billboard Magazine to exclusively live stream the “blue” carpet pre-show for the Billboard Music Awards, which take place this Sunday night. The pre-show will be available on Cambio.com and AOL.com beginning at 6:30pm ET. The live coverage will continue once the actual awards show begins with backstage interviews and other exclusive content. AOL says this is “one of several upcoming premium video programs” that will launch on the redesigned Cambio platform, which now features responsive design, a continuous scroll, and an extra-large video player. The new Cambio is also powered by a proprietary algorithm, which allows the site to identify trending topics in entertainment and pop culture and then serve editorial and video content to cover those trends.

Redbox Instant by Verizon is now available on smart TVs from LG Electronics. As usual, new subscribers will get one month of free access to sample the movie-streaming service, which also offers a DVD component by way of Redbox kiosks.

A CYNOPSIS MESSAGE

Our exclusive Webinar will provide you with their latest thinking, strategies and tactics to help you optimize your video investments. Expert speakers include: Joann Wolferman, Product Leadership, Ad Effectiveness for Nielsen, Matt Timothy, President at VINDICO, and Joseph White, Director, Research & Account Planning at Blip

Aereo has filed for a summary judgment, requesting a federal judge to dismiss the ongoing copyright infringement claims brought against it by broadcasters like ABC, Fox, CBS, and NBC. The live-TV streaming service wants US District Judge Alison Nathan to affirm a federal appeals court ruling that Aereo doesn’t violate the broadcast networks’ public performance rights. Nathan is the same judge who denied a request for a preliminary injunction against Aereo back when all this started.
In Other Words: If Nathan agrees with Aereo’s current request, then this case won’t go to trial (which by no way means this legal battle would end).

YouTube channels with more than 1,000 subscribers are now eligible to apply for the site’s live-streaming capabilities. Among the features YouTube offers: multiple camera angles, closed captioning, and ad insertion. YouTube says once creators send it their highest quality stream, the site will make it “instantly available in all resolutions and device formats.” Those eligible for live streaming will see an “Enable” button next to “Live Events” on their Account Features page.

Netflix accounted for nearly one-third of total video-viewing time on tablet devices during March, according to the NPD Connected Intelligence SmartMeter. “This translates into 2.5 hours of Netflix video viewing time per active tablet user weekly; with active users engaged in the Netflix app three-to-four times a week, and spending on average nearly 45 minutes per session,” said Linda Barrabee, Research Director for NPD Connected Intelligence in a blog post. On smartphones, Barrabee said Netflix accounted for 16% of total video viewing time in March, “which equates to less than an hour per active smartphone user weekly.”

Android and iOS are powering 92.3% of the smartphones that were shipped worldwide during Q1 2013, according to new data from the IDC. Android was far and away in the lead with 75% of Q1 smartphone shipments. Apple’s iOS grabbed a 17.3% market share. Below this two-headed monster, IDC reports that Windows Phone hurdled past BlackBerry to assume third-place with 3.2% of worldwide Q1 smartphone shipments. Overall, worldwide smartphone shipments hit 216.2 million in Q1 2013, a year-over-year increase of 41.6%.

While we’re on the topic of mobile devices, mobile ad network Millennial Media released its latest Mobile Mix report, which covers changes in mobile ad impressions across the Millennial network during Q1 2013. The report finds that both Android and iOS increased their overall share of impressions, with Android impressions rising from 49% in Q1 2012 to 52% in Q1 2013 and iOS impressions jumping from 33% in Q1 2012 to 39% in Q1 2013. Mobile ad impressions on “non-phone connected devices” such as tablets and e-readers increased from a 20% share in Q1 2012 to 25% in Q1 2013. What’s more, Millennial reports that Android tablet impressions grew 96% year-over year and now make up 45% of total tablet impressions on the Millennial platform.

Join me for Cynopsis Digital’s next informative webinar on online video measurement on May 21. We have a wonderful lineup of speakers ready to provide you with the latest data and insights on exactly how people are measuring digital video, and what’s in store for the future as the industry continues to evolve.

YouTube is demanding that Microsoft remove the YouTube app from the Windows Phone Store, claiming that it violates YouTube’s Terms of Service and API Terms of Service. Which it does: the mobile video app removes pre-roll ads from videos and allows users to download videos to the phone, both of which are serious no-no’s, according to YouTube’s mobile terms and conditions. This is where it gets funny: the YouTube app for Windows Phone was developed by Microsoft itself after YouTube opted not to build an native app for Windows Phone 8 (because not a lot of people have a Windows Phone 8). Microsoft’s response to YouTube’s cease-and-desist letter (per The Verge): the company is “more than happy to include advertising” on its YouTube app, but first needs “access to the necessary APIs.” Anyone else feel like this was Microsoft’s plan all along?

Max Smith has joined Blip as its new Chief Financial Officer. In the newly created executive role at the company, Smith will be responsible for internal financial management and planning for the web video company.

Hooked Digital Media, an independent digital studio from Hollywood producer Neal Edelstein (The Ring, Mulholland Drive), just launched Haunting Melissa, a full-length feature film that’s only available on the iPhone or iPad. But it’s not just a full-length horror film packed into an app, as Edelstein demonstrated to me when previewing the film/app. The entire narrative, which follows a teenage girl who believes her recently deceased mother is haunting her, is packaged into chapters of varying lengths. And they’re not all immediately available. Instead, Edelstein and Hooked Digital have developed a technology that distributes new chapters at unpredictable intervals. So when you’re done watching the first chapter (which is available for free), you simply have to wait until the app chooses to ping you.

This is not gamification, Edelstein said. Which is true, the app user won’t have to jump through any hoops to access new chapters. The app enables filmmakers to still follow a linear storytelling format while also keeping the viewer’s attention for a longer period of time, Edelstein told me.

The project was directed and produced by Edelstein, and written by author Andrew Klavan (True Crime, Don’t Say a Word). The cast is full of names you probably haven’t heard of. But then again, Haunting Melissa is an independent film — one that is actually using a new distribution model that we so often hear people wax philosophically about. Edelstein told me about some cool things he has planned for the project/app, and while I can’t speak about them here, if you’re into horror, the app is definitely worth checking out. Here’s the trailer.

Later – Sahil
Sahil Patel, Editor for Cynopsis Digital
05.17.13

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