Cynopsis: DIGITAL
05/10/10

Good morning, it’s Monday, May 10, 2010, and this is your first early morning digital briefing.

Studios have been experimenting with shifting the windows of major release movies but have worried that digital copies made from VOD premieres could cannibalize the lucrative home video market. In a major win for movie studios, the FCC approved a 2008 request from the MPAA on Friday, allowing companies who distribute movies using video-on-demand services to utilize a blocking technology to prevent copying or re-use of new releases within the home. To prevent the studios from blocking the taping of all films, closing off outputs on TV sets and set-tops can only be executed within 90 days of film’s release or until the movie is released on a home video format such as DVD or Blu-ray – whichever comes first. Public advocacy groups such as Public Knowledge opposed “selectable output control,” arguing it the first time big media firms will be allowed to “take control” of a consumer’s TV or set-top box.
 

 
The still-unexplained temporary meltdown on Wall Street last Thursday proved to be a boon for financial site CNBC. Both CNBC.com & CNBC Mobile experienced record traffic during 3-4 pm ET as the bottom dropped out from the market, with page views spiking by 130% and mobile page views increasing by 154%. CNBC says the week of Apr. 26 was its best overall week ever in terms of page views for CNBC’s digital platforms with 106 million for CNBC.com, 13 million for CNBC Mobile Web and 9 million for CNBC’s iPhone application, which been downloaded over 619k times. 
 
Comcast’s G4 network has come up with a new tech-themed half hour show to spotlight ingenious inventions of interest to younger audiences. It’s Effin’ Science is co-hosted by Angie Greenup (FEARnet, GQ.com and Break.com), rocket scientist Chad Zdenek and Mark Horowitz and premiers June 15, immediately following G4’s live E3 coverage.
 
Warner Bros.’ WBShop.com has added more titles to its DVD2Blu program to now include 90 popular movie titles. The studio ships Blu-ray versions of movies for as little as $4.95/each when you mail in the DVD version of the movie.
 

 
Anime site Crunchyroll launched a marketing initiative centered around Sunrise‘s popular Gundam series. Episodes of Gundam Wing are now available on Crunchyroll’s multiplatform website as well as through a new interactive Gundam Wing Facebook app developed by Crunchyroll.
 

 
The FCC‘s new third way proposal to regulate internet providers met with a chorus of opposition from ISPs, industry lobbyists and Republican lawmakers who claimed the move would hamper investment and job growth. Heading into this week’s Cable Show, NCTA President & CEO Kyle McSlarrow argued that reclassifying broadband as a Title II provider “is still fraught with legal uncertainty and practical consequences which pose real risks to our ability to provide high quality and innovative broadband services.” Tech giants such as Google and Amazon, under the auspices of the Open Internet Coalition, praised Chairman Genachowski’s “middle ground approach,” which would still allow publishers and distributors to regulate content such as email, online video or games distributed over the internet.
 
Openet has expanded its set-top box data collection and analysis solution for cable operators, introducing a new eWallet Solution of bundled itaas-developed applications designed to up sell cable subscribers in real-time.
 

 
Apple’s iPhone increased its U.S. Smartphone market share during Q1 2010, according to IDC, shipping 8.8 million units through March – an increase of 131% from a year ago. Apple now trails BlackBerry maker Research In Motion by just 3 percentage points. Smartphone vendors shipped 54.7 million units overall during the quarter, up from 34.9 million Q1 2009, as converged mobile devices accounted for 18.8% of all mobile phones shipped.
 
Top Five Converged Mobile Device Vendors, Shipments, and Market Share, Q1 2010 (Units in Millions)
Vendor     1Q10 Volumes  1Q10 Mkt. Share 1Q09 Volumes 1Q09 Mkt. Share 1Q10/1Q09 Change
1. Nokia           21.5                   39.3%             13.7            39.3%           56.9%
2. RIM             10.6                   19.4%               7.3            20.9%           45.2%
3. Apple            8.8                    16.1%              3.8             10.9%         131.6%
4. HTC              2.6                      4.8%              1.5               4.3%          73.3%
5. Motorola       2.3                      4.2%               1.2              3.4%          91.7%
Others              8.9                    16.3%               7.2            20.6%          23.6%
Total              54.7                   100.0%             34.9          100.0%          56.7%
Source: IDC Worldwide Quarterly Mobile Phone Tracker, May 6, 2010

An estimated 63.7% of U.S. mobile subscribers used text messaging on their mobile device during Q1 2010, up 0.6 percentage points versus three months prior, according to ComScore. Mobile web browsers were used by 30% of U.S. mobile subscribers (up 2.6 percentage points), while subscribers who used downloaded applications made up 28.6% of the mobile audience (also up 2.6 percentage points). Access of social networking sites or blogs also continued to increase to 18.7% of mobile subscribers.
 
Mobile Content Usage 3 Months Avg. Ending Mar. 2010 vs. Ending Dec. 2009
Total U.S. Age 13+
 
Share (%) of U.S. Mobile Subscribers
                                                         Dec-09    Mar-10    Point Change
Total Mobile Subscribers                       100.0%    100.0%        N/A
Sent text message to another phone        63.1%     63.7%        0.6
Used browser                                         27.5%     30.1%        2.6
Used downloaded apps                            26.0%     28.6%        2.6
Played games                                         21.6%     21.8%        0.2
Accessed social networking site or blog     15.9%     18.7%        2.8
Listened to music on mobile phone           12.1%     13.2%        1.1
Source: comScore MobiLens
 

 
Apple announced that the iPad tablet device will go on sale in Australia, Canada, France, Germany, Italy, Japan, Spain, Switzerland and the UK on Friday, May 28 (pre-orders begin today.) eBay sellers of iPads have already been doing brisk business overseas, according to the online auction house, but those shipping costs can really get you. Apple has already sold over one million iPads in the U.S., with users downloading over 12 million apps and over 1.5 million eBooks from Apple’s iBookstore.
 
MLB Advanced Media has signed its first licensing agreement with a third party app maker allowing Konami to develop a new iPhone/iPod Touch game utilizing active MLB player names and likenesses. The $7.99 “MLB Power Pros Touch 2010” app allows gamers to play out scheduled games tapping the touchscreen to slide, pitch, bat, and run.
 

 
Online video network blip.tv has expanded its sales team across the pond and added new sales staffers on the West Coast, the Midwest, the Southeast and Southwest. Managing Director Chris Broadbent and Sales Director Kelvin McManus, founders of The Internet Works, will manage sales for blip.tv in the UK. Rafi Mamalian will join as West Coast Director, based in San Francisco; new Midwest Director Phil Meier will be based in Chicago; and Senior Account Director Liz Griffin will work from Texas.
 

A CYNOPSIS MESSAGE

 
Google has made a number of improvements to the useful RSS-based Google Reader app, including support for HTML 5 video and audio tags. (As the Flash vs. HTML 5 war rages on, more applications seem to be quietly moving to adopt the next generation format.) Another new feature is the “not interested” option for Google Reader’s recommended items. This option allows you to hide recommended items and thumbs down choices, of course, give Google’s algorithm more data with which to serve you up content you might like. The whimsical Reader Play released earlier this year has also been updated. Reader Play allows you to browse what folks are sharing on Google Reader in a more visual interface, categorized by what you’re interested in with easy rating, “like” and “share” buttons included. The interface now allows you to cycle between posts or multiple images within single posts by hitting the space bar.

A CYNOPSIS MESSAGE FROM IAB

IAB Digital Media Education – Now Available on Demand 

The IAB’s most popular live seminars have been cut into 15-20 minute modules suitable for e-learning. Each class still counts towards the IAB Certificate in Interactive Advertising.

Eight courses are currently available at an introductory rate of $95 per course, including: Ad Effectiveness 101, Metrics 101 – Understanding and Using Measurement Data, Mobile Advertising: Marketing on the Go, and more!

Learn more about IAB Professional Development On-Demand and get started today!

Later – Wayne
Wayne Karrfalt for Cynopsis: Digital
wayne@cynopsis.com
05.10.10

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