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In February of 2007, Google paid $27m to acquire small in-game advertising company Adscape.  The expectation was the acquired technology would quickly ramp into a Google platform to rival Microsoft’s Massive unit, IGA Worldwide and others chasing the expected boom in video game ads.   That never happened.  While EA linked with Massive, as did Activision, the Adscape platform remained locked away somewhere on Google’s campus.

In July, Venture Beat reported daylight might soon be let in.  The was no certainty but AdSense for Games, the report speculated, was quietly being tested for use with console games, web games and mobile offerings.  The platform was “something to watch for.”

This week, the doors were finally opened.  Click to Read More

When Apple hinted at a new product release by September in July’s earnings call, many followed the trail of bread crumbs to the conclusion new Macbooks were coming.  The notebook computers were overdue for a makeover, they reasoned.  It was time. So as the launch day grew closer, the Applevine grew louder with more rumors, theories and predictions.  Some speculated new internals, new chips, maybe even from PA Semi Conductor.  Other’s predicted a redesigned aluminum case and a sleeker profile to match the design of the Macbook Air.   As it turned out, it was all false positives.   None of the rumors were right.  Apple’s September product announcements were musical: new iPods and iTunes.    Now, a month later, the Macbooks are finally poised to get their update too.

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In the 2007 movie August Rush, the title character says “The music is all around you, all you have to do is listen.”  That’s especially true online.  From iTunes to Amazon, from Pandora to Slacker, from Facebook to MySpace and imeem, the songbooks and song vendors border on ubiquity.  You can buy a DRM-Free download or tune in to a free stream; you can catch a new single or embed a sample as soundtrack to your personal corner of the web.  And in case that’s not enough, if those options don’t overwhelm, now there will be another.  The Financial Times reported Wednesday that EMI, the smallest of the world’s Big Four music labels, is preparing to launch a digital music portal of their own in time for the holidays.

Few details have been released but the FT reports the service will offer both audio and video content, some paid and some free. 

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Now you see it, now you don’t.  Real Network’s newly launched DVD copying software platform, RealDVD, has gone from controversial to contained in the blink of an eye. You could say the software has been sequestered.

Friday, days following the program’s launch, with litigation already pending from both sides,  U.S. District Judge Marilyn Patel issued a temporary restraining order blocking all sales of the program pending a broader review of the software’s legality.

Tuesday, the TRO was extended.  The exact terms haven’t been made public but it appears the judge wants time to gain a more detailed understanding of how the software works and also, to allow the competing sides to prepare expert testimony.

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In 2007, News Corp paid $188m to buy 51% of VeriSign’s mobile content provider Jamba (aka Jamster in the U.S.).  Today, News Corp paid another $200m to acquire the rest.

VeriSign originally bought the mobile games and ringtone vendor in 2004 for about $273m.  The company was founded in Berlin in 2000.  Ringtones, and phone wallpaper are among its leading products.  Games and video excerpts are also offered. Jamba has been operating in the US and China since 2005 but also maintain a presence in Australia, Germany, Ireland, New Zealand and the UK.

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Smartphone sales were up handsomely in the U.S. in the first half of the year and the average price of smartphones was down 26% to $174 in August (via NPD Group).  With consumer spending on the wane and all the doom and gloom of the current economic climate likely to seal wallets even tighter, some analysts still believe smartphone sales will remain resilient; the lower prices and increased competition luring consumers to substantial improvements and value at relatively low entry points.   There’s not really any way of validating the forward looking claims but to start the week, a  handful of new smartphone data points have hit the market to help fuel the debate. One even suggests Apple may have already sold ten million iPhones in 2008.

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Entertainment industries are sometimes called recession proof.  When wallets tighten, retirement gets pushed back, or bills go unpaid, people will spend a little to escape fear and worry.  There’s a need for entertainment in tough times, the theory goes.   The reality is less forgiving: entertainment like anything else can fall victim to a weakening economy.  Entertainment industries are recession resistant not recession proof.   Glimpses of August data may be beginning to prove that point. 

Mirroring a surprise shortfall in August gaming sales, Netflix came out Monday with a surprise adjustment for their third and fourth quarter guidance.  A few weeks ahead of the actual earnings report (October 20th), the Los  Gatos company preannounced that third quarter revenue and EPS will fall within prior guidance but subscriber numbers will fall “just below” the low end of guidance.

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