Seth Gilbert, 12-3-2008
In the U.S. NBC Universal and News Corp’s joint video on demand service, Hulu, has proven to be a big success, drawing both audience (Quantcast data) and advertisers. In the U.K., BBC Worldwide, ITV and Channel 4 had hoped to follow a similar path with their own web service, Project Kangaroo (also known as UKVOD). Their route now looks complicated, if not potentially impassable.
Wednesday, after a prolonged review, the U.K antitrust authority, the Competition Commission (“CC”) issued a provisional finding that the joint venture would unfairly restrict competition. Specifically, the CC believes, as currently defined, Project Kangaroo will lessen essential competition in the supply of UK TV Video on Demand programming.
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Seth Gilbert, 12-2-2008
Blockbuster wants to be your entertainment superstore. They’ll sell you electronics, rent you a movie or now, even get you into a concert.
Today, Blockbuster and Live Nation announced a three year deal to make Blockbuster the brick & mortar retail outlet for Live Nation’s soon to be launched concert ticket service. 500 stores in cities home to Live Nation operated venues will take on the new sales task.
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Seth Gilbert, 11-24-2008
Raising money in a tightening venture climate can depend on who you know as much as what you’re company is doing. Based on these factors, set top box developer Sezmi may be in a pretty good place. The company aiming to potentially reshape television distribution counts among its board members a past president of the National Venture Capital Association, a prior president of Bell Labs and another executive whose resume credits include roles as CEO of NBC and Sony BMG music.
According to regulatory filings reported at PEHub, since August, the company has drawn $28m out of a possible $50m in Series C financing. Prior investors including Morgenthaler Ventures and Omni Capital Group both participated.
UPDATE Nov. 25: Sezmi has confirmed the financing and issued a press release. A total of $33m was reported. Click to Read More
Seth Gilbert, 11-20-2008
If you want to irritate consumers, one way is to try and interfere heavy handedly with how they can use the product’s they’ve purchased. An even more surefire way to rankle them and draw their wrath is to fail to disclose your practices or cover them up.
Sony BMG found this out the hard way with their now infamous “root kit” music DRM fiasco in 2005. That violation of consumer trust brought them a tremendous amount of bad PR and plenty of time in front of a judge before the lawsuits were settled. Electronic Arts currently, though to a lesser degree, is dealing with a similar parade of customer backlash thanks to their own poor disclosure over DRM. EA’s facing down a handful of class action lawsuits.
Now, it seems, Apple and other PC vendors could, if they’re not careful, get a foot partially snagged in a similar but far less toothy version of the same kind of bear trap too.
According to reports from Wired and Ars Technica, new Macbook computers have quietly been gifted a restrictive anti piracy technology called High Bandwidth Digital Content Protection (HDCP) (or a related system called Display Port Content Protection (DPCP)). These technologies are DRM systems that add a layer of encryption to the distribution of some content between its source (your computer) and certain peripherals and displays (your external monitor).
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Seth Gilbert,
Chalk up another Web 1.0 movie delivery service to the fire-sale files. Last year, it was Blockbuster stepping in to salvage Movielink for pennies on the dollar, $6.6m to be precise. This year it’s Sonic Solutions sweeping up CinemaNow for even less.
Announced Thursday, the media authoring software company known as a leading maker of DVD and Blu Ray encoding tools is buying the assets and assuming the liabilities of the movie download service for a reported $3m.
Cinema Now was founded in 1999 to offer online movie rentals. As studios became more accepting of Internet delivery mechanisms, downloadable sales were added to the mix. CinemaNow was the first website to offer pay-per-view movies from major studios. They were also the first broadband distributor of HD content.
Investors including Menlo Ventures, Cisco, Transcosmos and Lions Gate fueled the company with more than $40m in funding. A fifth round totaling more than $20m was closed in 2006.
The investors money helped build both the delivery mechanism and a catalog of TV and film titles more than 6,000 strong but it wasn’t enough to buy a sizable audience. Consumers never really embraced the service. Click to Read More
Seth Gilbert, 11-11-2008
How much does it cost to start up a premium cable channel assuming you already have a library of programming to show? Apparently $110m to $150m is a good start.
Last April, in a surprise announcement, Lions Gate, Viacom (Paramount) and MGM announced plans to launch their own premium cable channel. Soon after, Business Week reported former Showtime exec Mark Greenberg was set to take the helm. Besides those two tidbits of information, there’s been much speculation but limited detail. A new SEC filing, however, adds a little bit more.
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Seth Gilbert, 10-30-2008
In relationships, timing is everything. No matter how appropriate a pairing, both parties need to be ready. The stars need to align. Four years ago, Tivo and Netflix ambitiously tried to hook up to deliver an internet video distribution service. Unfortunately, the companies weren’t mature enough. Moreover, the marketplace (e.g. movie rightsholders) were not comfortable endorsing such a forward looking union with a license. Today, things are different.
Rekindling the old flame, Netlfix and Tivo announced Thursday that the’ve joined in partnership. Click to Read More