Cynopsis: DIGITAL

02/03/11

Good morning, it’s Thursday, February 3, 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. 

A brouhaha broke out between Google and Microsoft this week after Google accused Bing of stealing and repurposing its search results without authorization or attribution at the Farsight search conference. (Google even performed a “sting” operation by planting “synthetic queries” linking nonsensical words to actual search terms, discovering the same connections show up in Bing results.) Microsoft”s Yusuf Mehdi, SVP/Online Services Division, vehemently denied the accusations in a blog post on Wednesday, accusing Google of gaming the system. “Google engaged in a honeypot’ attack to trick Bing,” he wrote. “Google’s ‘experiment’ was rigged to manipulate Bing search results through a type of attack also known as ‘click fraud’.” Microsoft IE VP Dean Hachamovitch also leveled his own attack on Google for dropping support of the widely used H.264 video format in its Chrome web browser. He says Microsoft will build a Chrome plug-in that will restore support for H.264 and that IE9 will play HTML5 video in the H.264 format.
 

Rupert Murdoch’s much anticipated iPad newspaper, The Daily, officially launched yesterday at a daily rate of .14/day, billed at .99/week or $39 for an annual subscription. (The first two weeks are free.) Each issue, which is downloaded overnight to subscribers, will contain “up to” 100 pages of content focusing on news, sports, gossip, celebrity, option, arts/lifestyle and apps/games with one editor assigned to each category. Fun stuff includes daily Sudoku and crosswords, customizable sports info and audio commenting. The first issue features a cover story about Egyptian President Hosni Mubarak, who agreed on Tuesday to not seek re-election next fall.
 
Time Warner CEO Jeff Bewkes told analysts that Warner Bros. will launch a premium VOD service during Q2 that will feature movies in a new window, 60 days from when they’re released in theaters, per Variety. (The company has bandied about a price tag of between $25-$30 for such releases.) Mr. Bewkes also said TW may lengthen the time Netflix and Redbox must wait for their movie titles, currently 28 days after they come out on DVD and are available on cable and satellite PPV.
 
Work-in-progress AOL reported a 26% decline in earnings and a 29% decline in ad revenue during Q4 2010. Domestic display advertising declined by 14% while subscription revenue dropped by another 23%. Aggressive cost cutting and asset sales helped the company increase profits to $66 million for the quarter, but it still posted losses of $782 million for the year. A leaked copy of a future business plan, dubbed “The AOL Way,” attained by Business Insider highlighted plans to chase search traffic by increasing the sheer volume of blog posts, stories and videos, from 31.5k pieces/month to 40k pieces/month by April.
 

 
Tech-themed online video producer Revison3 says it reached profitability during Q4 of last year, as its revenue grew 80% y/y and its total video views increased 165% – totaling 42 million views in the month of Dec. alone. The company also announced that tech investor Mark Cuban participated in its most recent round of funding.
 
Check out Deanzie’s Guide To Business Conventions if you need brush up your corporate social skills. It’s a new clip site put together by Fox Searchlight to promote the Feb. 11 release, “Cedar Rapids,” starring John C. Reilly and Ed Helms. (Nowhere on the site is the movie mentioned.)
 

 
Hulu announced it is returning with the its AdZone feature for the fourth straight year, streaming each Super Bowl spot in an embeddable widget immediately after they air. A real-time leader board will track live voting results as users decided which marketers fared best.
 

The Egyptian government restored internet service and Facebook access to the country on Wednesday after the shutdown seemed only to fuel the anger of protestors, who in turn found alternative ways to vent their feelings and publish their demands. Egypt was without internet, cell phone and SMS access for 5 days.
 

 
Teachers across the nation report interest in utilizing digital instruction materials in the classroom but a lack of computing devices and infrastructure make the task impossible for many, according to a new report released by PBS and Grunwald Associates. Over half of K-12 teachers report using digital media in the classroom frequently, (76% of teachers stream or download TV and video content, up from 55% in 2007,) but cost continues to grow as the main barrier to using fee-based digital resources, with 46% of teachers citing this as a barrier.  Also, digital content is found to be more effective when integrated with other materials. More than two-thirds (67%) of teachers said that digital resources help them differentiate learning for individual students, with 68% believing TV and video content stimulates discussion.
 
Some 80% of online users utilized the internet to search for Health info, making it the third most popular online pursuit after email and search, according to a joint study from the Pew Internet Project and the California Healthcare Foundation. The most likely folks to seek health information online include caregivers, women, whites, younger adults and adults with at least some college education. However a digital divide appears to exist along ethnic lines, with African Americans, Latinos, people with disabilities and Older adults less likely to look online and less likely to discover up-to-date information about drug recalls, food safety and medical treatments.
 

 
The iPhone 4 officially goes on sale (for pre-order) this morning through the Apple store and the Verizon website, for delivery or reserve pick-up beginning Feb. 10. Best Buy will also carry the Verizon-powered iPhone 4 from Feb. 10.
 
Google shared more details about the Android 3.0 operating system for tablet devices – codenamed Honeycomb. The new OS, which will run on new devices such as the upcoming Motorola Xoom, supports 3D graphics – a feature that should capture the imagination of game developers. Other cool features include the ability to chat during live video presentations (enhanced by new image stabilization tools), an updated set of UI widgets to make it easy to add content to third party apps and a new application bar appearing at the top of the screen offering easy access to your favorite apps.
 
Google also unveiled a web-based Android Market website allowing Android device users to browse and search for new apps from their web browser.
 
Massively multiplayer online game (MMOG) fans can get a crack at the upcoming free-to-play Battlestar Galactica Online game in a week-long open beta run exclusively on Syfy.com and international Syfy Universal websites, beginning Feb. 8. The Bigpoint game will include language options for English, French, German, Polish, Turkish Italian, Russian and Spanish.
 

 
San Francisco-based blog ad network Federated Media Publishing upped current President and COO Deanna Brown to CEO. She replaced co-founder and Chairman John Battelle, who will take over the role of Executive Chairman and Chief Strategy Officer.
 
Adam Guild has sold online publisher rep firm Winstar Interactive to current employees and accepted the post of President and CEO of Los Angeles-based Hungry? City Guides, publisher of print-based urban dining and drinking guides. Adam plans to create digital companion guides to go with the editions sold in bookstores.
 

 
Here’s one way to boost ratings during sweeps: tonight’s episode of CBS drama CSI will contain clues that will enable players of the CSI: Crime City Facebook game to unlock special bonuses within the game. The social game – part role playing game, part crime solving spree – was developed by Ubisoft. It has cemented an impressive audience of users (more than 2 million active monthly players), who will now be forced to watch the show to advance in the game. Crime City is easy to figure out and can be quite addictive as you move up in detective levels and earn more cash and energy with each case solved. CSI Funding Cash is required to buy stuff from the crime scene grid. You need to buy tools of the trade such as Luminol or a fingerprint kit in order to solve cases. UBI Credits are also available with a credit card if you want to power through the game faster and you don’t mind spending real world money to improve your virtual life.
 

A CYNOPSIS MESSAGE

Later – Wayne
Wayne Karrfalt for Cynopsis: Digital
02.03.11

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JOB OPENING:  SALES PLANNER/NYC BASED: HIGH PACED DIGITAL ADVERTISING COMPANY. MUSIC FOCUSED COMPANY.  EXPERIENCE A MUST. ONE OF THE LARGEST MUSIC CENTRIC COMPANIES ON WEB. Email resume: scotts@mog.com (2/10)

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SPRING INTERNSHIP CREDIT ONLY:  DIGITAL MEDIA INTERN/assistant W LA Digital company seeking a capable intern to work directly with CEO.  Mobile apps, web development, film/vid Production and social media. Resume to info@minglingmedia.com (2/9)

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SITUATION WANTED: PERSONAL ASSISTANT/LA:  10+ yrs Exp’d, honest, loyal, & dedicated. Exp in Film/Music. Strong Management, Accounting & technical background. Computer savvy, Microsoft Office Suites. Email evanbutris@gmail.com (2/8)

SITUATION WANTED: SALES CLOSER in TV, FILM & MEDIA NY 7+ years of Domestic and International experience in Film & TV sales, a powerful sales closer w/ strong Rolodex of clients, email alfredofilms@gmail.com (2/5)

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