Cynopsis: DIGITAL
02/07/12

Good morning. It’s Tuesday, February 7, 2012, and this is your first early morning digital briefing. If you would like to read this or any other Cynopsis editions online, click here.

Verizon and Redbox are teaming up to compete against Netflix. Through a joint venture just formed by the two companies, Verizon will create a new digital video streaming and download service, while Redbox will offer a complementary physical DVD and Blu-ray rental option. So far, the companies have only confirmed that this new venture will offer a subscription-based digital streaming service and that it will be available for multiple devices and platforms. Additional information will be revealed “in the coming months.” The service is slated to be introduced in the second half of 2012. Verizon will own a 65% stake in the venture, which is also a limited liability company, while Redbox holds ownership over the rest. Verizon had been rumored for the last several months to be considering a video streaming service that would serve as a direct challenger to Netflix. Redbox is owned by Coinstar.

Lilyhammer, also known as Netflix‘s first step toward original programming, was released yesterday. The series, which stars The Sopranos‘ star Steven Van Zandt, is about an ex-mobster from New York who is hiding out in Norway as part of the witness protection program. Van Zandt also wrote and produced for the series. In an interesting point of differentiation from other content offerings, Netflix has made the entire first season (eight episodes) available at once. The series is immediately available to all Netflix subscribers in the U.S., Canada and Latin America, and has already started airing regionally on Norwegian television, where it currently attracts 1.2 million viewers every week.

Apple’s Genius recommendations feature from iTunes has been extended to Apple TV, according to AppleInsider. The feature now offers suggestions for movies and TV shows based on the user’s previous purchases. On the menu screen, the Genius suggestions can be found underneath both the “Movies” and “TV Shows” tabs.

Brightcove, a Massachusetts-based online video platform provider, is hoping to raise around $60 million for its upcoming initial public offering, according to amendments the start-up made to its S-1 filing with the SEC. The start-up originally filed for an IPO in August of 2011 seeking a raise of $50 million. Brightcove will now pursue a higher number as it’s set to sell 5 million shares at $10 to $12 per share. The new filing also provided key new numbers for Brightcove at the end of 2011: it had 3,872 customers in over 50 countries; its revenue grew from $43.7 million in 2010 to $63.6 million last year; Brightcove generated 66% of its revenue in the U.S.; its customers served on average 743 million streams per month, over half of which were delivered outside of the U.S.; and most of the media is delivered through Akamai or Limelight. The IPO will be led by Morgan Stanley and Stifel Nicolaus Weisel.

Appoxee, an Israel-based start-up that offers a “rich push notifications” service, has secured an undisclosed amount of funding from Cyhawk Ventures, according to TechCrunch Europe. The start-up’s notification service enables clients to send rich media messages to an inbox within their mobile app, which then alerts users (provided they have opted-in to the service) by delivering a regular push notification to their home screen. Appoxee also offers services like audience segmentation, targeting and analytics; all to help app developers and publishers increase user engagement. The start-up will reportedly direct its new funds toward further developing its mobile user relationship management suite, along with international sales and marketing initiatives. And finally, it is also now allowing any interested client to sign up for the service, for free.

The upcoming Grammy Awards feature a multiplatform marketing campaign that includes a mobile app and an interactive microsite, as well as digital, print, outdoor and TV ads, reports Mobile Marketer. The soon-to-be-launched mobile app for the “We Are Music” ad campaign will allow users to create and share videos that are similar to the campaign’s creative. This means, through the app, users will be able to select a song from their iTunes library, as well as a picture from their phone’s photo collection, and create a musical video in which their photo disintegrates into particles and then reassembles, all in step with the selected song. The same feature will be available via the campaign’s microsite. The campaign was developed by The Recording Academy, in conjunction with marketing agency TBWAChiatDay Los Angeles.

Hulu has announced the top ads for this year’s Super Bowl according to what viewers voted its own AdZone website. Honda’s Ferris Bueller-inspired “Matthew’s Day Off” starring Matthew Broderick edged out Volkswagen’s “The Dog Strikes Back” in the final viewer voting tally. However, the overall most liked commercial on the AdZone was VW’s “The Bark Side” preview ad. The funniest ad vote went to Acura’s “Transactions” spot featuring Jerry Seinfeld and Jay Leno, while best celebrity cameo was given to Will Arnett for Hulu’s own “Huluboratory Extra Mushy Edition” advertisement. Final votes were counted as of 11 pm PT, Sunday Feb. 5. The ads can be viewed again on the site.

Smartphone shipments exceeded those of personal computers, which include laptops, tablets, netbooks and desktops, for the first time in 2011, according to the latest findings from Canalys. Last year, 158.8 million smartphones were shipped globally in the fourth quarter, adding to 487.7 million total shipments over the whole year. In comparison, 120.2 million PC devices shipped in the fourth quarter of 2011, and 414.6 million over the whole year. The 2011 smartphone shipment numbers represented a 63% increase over 2010, in which 299.7 million smartphones were sold. The global PC market, on the other hand, only witnessed a 15% year-over-year growth. Canalys’ research study also found that Android smartphones accounted for 48.8% of all smartphones shipped over 2011, or 237.8 million. Apple’s iPhone grabbed 19.1% of the market, with Symbian and RIM following in its footsteps at 16.4% and 10.5% share of total 2011 shipments, respectively.

While the New York Giants and New England Patriots were battling it out for football supremacy, NM Incite (a Nielsen/McKinsey company) conducted some research on which brand won the battle on social media channels during the Super Bowl. The verdict: Pepsi, which captured over 18% of all Super Bowl advertisement-related messages. Coca-Cola and M&M’s earned second and third place honors, according to NM Incite, with a 10% share of conversations each.

CNBC and Collective Intellect, a provider of real-time social media analytics, have also unveiled data on the most popular/engaging ads during this year’s Super Bowl via their Super Bowl Ad Tracker. The top ad in terms of most engaged consumers was the one for M&M’s, which pulled in 16.1% of the overall share of engaged consumers. Ad spots for Doritos (13.8%), Chevrolet (12.8%), The Avengers (5.9%) and Skechers (4.8%) rounded out the top five. The same commercials also landed in the top five in the category of total online buzz (number of mentions). The only difference was the order of the top three, with Chevrolet coming in at number one, followed by M&M’s and Doritos.

Studio One Networks, a brand-focused content creation and distribution company, has appointed Devin C. Johnson to the role of Chief Operating Officer. At his new position, Johnson will provide strategic and operational leadership for Studio One’s partnerships with online publishers and brand marketers. He will also oversee the management of the company’s finances, marketing, business development and technology. Johnson joins Studio One Networks from Digital Works @ NBCU, where he was general manager.

Steve A. Smith, Jr. has been hired by Revision3 to become the online television network’s Director of Sales for the West Coast. He will be responsible for managing the sales team based out of Los Angeles. Most recently, Smith was the director of sales for IZEA, and before then was a vice president of sales for ImageShack.com and yfrog.com.

A CYNOPSIS MESSAGE

IKA Collective is a N.Y.-based production studio that’s known for network promos (FOX, Discovery, Showtime, Hallmark). However, as founder Ian Karr will tell you, the studio is also using its infrastructure to create its own stories. In making the push toward long-form content, IKA didn’t opt for just creating a “sizzle reel” to grab attention. “What better than to create our own show?” theorizes Karr. Through that, IKA has recently launched The Midnight Archive, a web series from IKA director/senior editor Ronni Thomas that explores the eccentric interests of some truly unique individuals. For example, previous episodes have focused on a man, who maintains a collection of automated dolls and instruments; virtual tours of occult places around NYC; and more. The newest episode, to be unveiled today, turns the camera around on the show’s creator, Ronni, and his fascinating collection of ancient 3D diableries. The Midnight Archive has been generating interest and IKA has already met with several networks about the series. In addition, IKA announces that it has inked a representation deal with Peleton Entertainment; as well as an agreement with AOL’s 5min Media for it to serve as another syndication platform for the series. IKA says it developed The Midnight Archive like a TV series; it will be released in seasons, each with its own specific theme (this first season’s theme: death). Karr says, “With TMA, we wanted to bring a high-level aesthetic and TV storytelling sensibilities to the web. Ronni has created something hauntingly beautiful and unique.” Check it out, it’s interesting stuff.

Later – Sahil
Sahil Patel, Associate Reporter for Cynopsis Digital
02.07.12

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