Amazon Launches Fire TV Stick

In the growing competitive field of Streaming Sticks, Amazon introduced the Fire TV Stick today. Designed to take on challengers like the Roku Streaming sticks and Chromecast dongle, Amazon’s HDMI-based media adapter represents a smaller, less expensive complement to their $99 Fire TV box. The new smaller and even more affordable device sells for $39 and features access to Netflix, Prime Instant Video, Hulu Plus, Twitch, WatchESPN and a variety of other services right out of the box.  Jeff Bezos, Amazon.com founder and CEO, said in announcing the new product, “The team has packed an unbelievable amount of power and selection into an incredible price point.”

The company said the Fire TV Stick has 50 percent more processing power and 2x the memory of Chromecast, and 6x the processing power, 2x the memory, and 32x the storage of Roku Streaming Stick It supporting standards like DIAL allowing users to fling shows from services like YouTube, Spotify, and Netflix (coming soon) from an Android phone or iPhone. They began to take pre-orders today and will start shipping the new product on 19th of November.

Overall the specs look good and based on Amazon great success with the Fire TV Box, which launched a little more than six months ago and quickly became the best-selling streaming media box on the e-retailer, the Fire TV Stick might be the first product that will be a serious challenger to Chromecast in terms of both features and value. Obviously Mr. Bezos believes he has a winner, the rest of us will have to wait and see how it performs in the real world to be sure. More: TechCrunch.com 10/27/14 - Amazon’s New Fire TV Stick Is A $39 Chromecast Competitor With A Hardware Remote and Variety.com 10/27/14 - Amazon Whips Out TV Stick Against Google’s Chromecast and Roku and/or Twice.com 10/27/14 - Amazon Unveils Fire TV Stick

Netflix Maintains Lead over Amazon for Top Movies, TV Shows

Piper Jaffray analyst Michael Olson opened the book on his findings of how Netflix, Amazon, Hulu Plus, and Redbox Instant compare in their offerings of top 50 movies available for streaming over the past three years and top 75 TV shows available from the past four years. The report revealed that Netflix continues to outpace Amazon.com’s subscription-video service in terms of content-licensing, delivering substantially more of the top movies and TV shows from the last few years.  There’s no question that Netflix, by stocking more hit shows and movies, would to some degree appeal to a wider base of consumers than Amazon’s service. But Netflix hasn’t decisively won the SVOD war: Amazon remains aggressive in looking for exclusive TV licensing deals to expand its 40,000-plus title Prime Instant Video service. More: Deadline 07/03/14 - Amazon Narrows Gap with Netflix in Hit TV Shows but not Movies
 

64% of U.S. Homes Have one or more CE Devices Connected to the Internet

According to a new research report from Parks Associates, (64%) of US broadband households have at least one consumer electronics device connected to the Internet, which could include a smart TV, Blu-ray player, game console, set-top box, a digital media receiver or Google Chromecast. Gaming consoles were found to be the most popular of connected devices. The report also noted that of the 50+% of U.S. households that use connected consumer electronics devices also subscribe to Netflix. By comparison, Amazon, which has made significant gains in the OTT video market this past year now has nearly 20 per cent of all US broadband households as Amazon Prime Instant Video subscribers.

Apple TV, Roku _ Who's Winning the OTT War and what are we Watching

Among those who use streaming media players, Roku owners access new subscription video platforms more than Apple TV which becomes more interesting when you factor in that currently there are more Apple TV devices deployed. This new research was published and presented at this week's NAB show by Parks Associates where they profiled the different device owners streaming and content purchasing habits. Their findings showed that 86% of Roku owners use one or more subscription OTT service, versus only 77% of Apple TV owners. Additionally, 75% of Roku owners use Netflix, compared to 63% among the Apple TV crowd. As a point of difference, more Apple TV owners use Amazon Prime Instant Video – 40% versus 28% and Apple TV also has a clear lead in sales passing $1 billion last year. On a similar topic, the latest study from video delivery firm Qwilt shows that Amazon's Instant Video is the third largest video site (March 2014), behind Netflix (57.5 percent) and YouTube (16.9 percent). Although it's sitting at a modest 3%, Amazon is still beating out Hulu (2.8 percent). I expect to see this number rising  considerably, since this data was collected before the Fire TV set-top box hit the market last week. More: 04/09/14 Advanced Television - More Roku owners than Apple TV owners use OTT and 04/09/14 Multichannel News - Roku Tops Apple TV In OTT Usage: Study and Qwilt 04/04/14 - Amazon Rising – Amazon’s Streaming Video Surpasses Hulu and Apple

ABC.com limits access to New Episodes

In a definite sign of things to come, ABC announced that next-day access to new episodes of ABC shows will be restricted to authenticated cable subscribers on participating pay-TV services and Hulu Plus subscribers starting Monday, January 6, according to the net's web site. (ABC owner Disney co-owns Hulu.) Access will be free to everyone eight days after the initial air date. Fox instituted a similar delay in 2011.

TiVo - To Roam or not to Roam

The DVR pioneers at TiVo are back with the recent launch of a new line of devices that promise closer integration of streaming services and personal recordings. Their cool new trick; out-of-home (OOH) streaming of both live and recorded shows, with the ability to download shows to to smartphones and tablets from anywhere. The company says that the new Roamio line combines the functionality of a DVR, Apple TV, Roku and Slingbox and even with all of those devices in a user’s entertainment centre; they still wouldn’t have access to everything a Roamio can do for them. It says that while doing what other cable set-top-boxes don’t do: combine all the best of linear TV with all the best over-the-top content, TV lovers now have the ability to roam free and both control and consume from out of the home through a mobile device. According to Colin Dixon, chief analyst and Founder of nScreenMedia, "The TiVo Roamio has reset the bar for what a DVR can do by making all that functionality and content available anywhere will allow users to get more value from the content they already pay for.” For now, the connectivity only works with iOS devices but the company has plans to roll out to Android sometime next year.

 

Now I'll admit that I've always have a soft spot in my heart for TiVo because truly, their early product was literally years ahead of it's time but now I must question.... is it enough to keep the company relevant? I guess only time will tell. As always, your thoughts and comments are welcome.

 

Netflix in Discussions for U.S. Cable Carriage

In an effort to continue to expand their subscriber base and to create a second revenue stream, Netflix is in talks with Comcast, Suddenlink Communications and several other cable operators about integrating its streaming video service with leased set-top boxes. Obviously U.S. MVPD's have taken notice of Netflix’s new arrangement with Virgin Media and, more recently, with Sweden’s Com Hem and are weighing out the potential future impact those deals may have state side.  At this point the company's mix of original series and large catalog of TV shows and movies, has essentially become a new premium subscription service that can do battle with HBO, Starz and Showtime. According to the Wall Street Journal, Netflix doesn’t have all the distribution rights it needs to offer its entire service on leased boxes in the U.S., at least not yet.

 

According to industry insiders, at this point in the game, Netflix would not gain much from a U.S. cable deal. The current distribution of cable STB's with IP capabilities, is very small and the overwhelming number of boxes deployed in the field today don’t speak IP (which at this point is critical to support a Netflix app). While cable operators are starting to deploy IP boxes, they will represent a fraction of the market for the near term future.

Technology aside the WSJ reports the biggest holdup between Netflix and U.S. cable companies is cable providers' fear of losing viewers of its own services and advertising. Currently they are 30 million Netflix subscribers in the U.S. alone and they will continue to access the service one way or another – via gaming consoles, retail TiVo boxes, Roku boxes and smart TVs – with or without cable’s help. In my opinion having Netflix on the set-top box would at least keep subscribers engaged with the cable video platform and prevent them toggling to a different video input and a different video device. MORE: MediaDailyNews - Netflix May Cut Deals with Cablers - 10/14/13 and Adweek - Is Netflix Looking for Cable Distribution Deals? by Sam Thielman 10/14/13

 

Online Video Viewing on the Rise

According to Nielsen’s 2013 OTT Video Analysis, released last week September, viewers are streaming video at a breakneck pace - up 38% year over year, largely direct by the rapid growth of tablets and smartphones.  The data also surfaced details that some 38% of Americans are users or subscribers to Netflix, 18% are Hulu users (including 6% who subscribe to Hulu Plus) and 13% are Amazon Prime Instant Video users. The report also found that 88% of Netflix customers and 70% of Hulu Plus customers are binge users who stream three or more episodes of the same TV series in one day. This new ability to watch multiple episodes or even entire seasons of certain programs in one sitting is shifting the way viewers consume content and demonstrating incredible binge appetites for programming available anytime and anywhere on services such as Hulu, Netflix and Amazon Prime. MORE: 09/18/13 Nielsen.com - "Binging" is the New Viewing for Over-The-Top Streamers

Yahoo eyes Hulu

Add Yahoo to the growing list of Hulu-suitors. According to reports, Yahoo CEO Marissa Mayer and Chief Operating Officer Henrique De Castro recently met with executives at Hulu, the premium video service whose owners have been considering selling it for some months. Hulu would make a powerful weapon to add and they also have mobile applications for their premium subscribers, making the company a natural fit. Mayer's drive into the mobile & digital content spaces seem to offer this deal synergies that could justify the enormous cost of this acquisition. She has made it no secret that her company has been looking to expand its video assets, recently acquiring the exclusive rights to all of SNL's classic clips from 1975 through 2012 while expanding their original exclusive programming. While speaking this past Tuesday during the Wired Business Conference, Mayer's stated that "video is important across all of the company's properties" and that Yahoo is becoming a "mobile-focused firm".

Hulu's board still has a lot of decisions to make and Yahoo has not made and offer. One thing does seem clear at this point and that is that if Yahoo is to pick up the video company, it will fundamentally change the online video landscape, and put Yahoo into competition with a host of new firms.

Amazon will soon enter your Living Room with their own OTT/STB

Online retail giant Amazon is developing a set-top box device that will stream video content from the web to your TVs, according to Bloomberg Businessweek. The STB device, which is due later this year, will provide access to Amazon’s expanding video services, which include Amazon Prime Instant Video, a service which provides access to more than 37,000 feature films and TV episodes for free. Users will also be able to buy/rent film and TV titles via Amazon Instant Video. Much like other streaming devices from Boxee, Roku and Apple, Amazon's box will also offer access to video services like Netflix and Hulu Plus, though Amazon's video offering will likely be heavily integrated into the device.
 
Some could say that Amazon is late to the OTT game, but the reasons for doing a set-top box are obvious, with its original content being the most popular on the platform since it launched. As Amazon finds its way to more niche shows that it can present exclusively, the reasons to grab an Amazon-branded device for your TV makes more sense. In the same way that Apple leverages each of its devices to sell new ones, Amazon is learning how it’s done. Jeff Bezos leads his company by taking smart, calculated steps all the while capitalizing on mistakes made by others. Kindle-TV anyone?

Twitter Shopping TV Programming Deals

It's no secret that Twitter has recognized the power of video. In 2012 they developed a partnership with Disney/ABC's ESPN to offer highlights and sports clips on the site. Earlier this year it announced a deal with The Weather Company to offer weather-related videos (ouch... AccuWeather!). Today according to a report from Bloomberg, the San Francisco-based company is close to reaching partnerships with television networks that would bring more high-quality video content and advertising to the social site.  The deals (potentially with Viacom and NBCUniversal) are said to be for short clips, not full-length episodes, similar to the company's current partnerships. Frankly it makes sense that Twitter would continue to develop partnerships of this kind.  Videos from Viacom properties i.e. The Daily Show, Colbert Report, MTV, etc. are some of the most shareable on the social network.

According to Bloomberg which first broke the story, the partnerships would let Twitter stream videos on its site and split the resulting ad revenue with the networks. Obviously the rapid rise of Netflix, Amazon Prime and the cable industries moves to the TV Everywhere concept and Hulu's future up in the air as its owners contemplate selling, the marketplace could be giving Twitter a good entry point that they can monetize.

Primary Growth drivers for OTT - Amazon, Hulu & Netflix

The over-the-top video market grew 60% last year to pass US$8 billion, driven by companies like Netflix, Hulu, Apple, and Amazon, according to new figures by ABI Research. The research found that the three largest markets – North America, Europe, and Asia-Pacific – experienced year-on-year growth in excess of 50% in 2012.  ABI predicted that as mobile devices like tablets and other connected devices continue to spread, the market will pass US$20 billion by 2015.  “The shift to digital and OTT distribution is accelerating, particularly as content providers increasingly warm up to these channels,” said ABI senior analyst Michael Inouye.  Subscription Video On Demand (SVOD) services, like Netflix, will continue to dominate the OTT business. But newer business/consumer models will also gain ground. In 2012, ABI says 58% of OTT video revenue came from subscription services. It estimates that subscription's share of the business will drop to less than 32% in five years.

Value of Pay-TV Diminishes

Although pay-TV penetration remains high, new research from TDG has revealed that the perceived value of traditional pay-TV service like cable, satellite, and telco TV appears to be on the decline as subscribers increasingly questioning the value of what they sign up for.

TDG's Benchmarking the Connected Consumer survey data found that this fall occurred regardless of what competitive services were available, regardless of which operator was running the best deal at the time, and regardless of regional price advantages. Considering that prices are on the rise and the growth of OTT with services like Hulu, Netflix and other's the data should act as wake-up call to the industry. Sounds great in theory doesn't it?