Google

Mediaroom enters TV streaming war

Tue, 18 Mar 2008 07:59:50 -0400

Microsoft's next upgrade of its Mediaroom software will enable the fusion of live video and web streams to the TV. The "Milwaukee" upgrade is also promising improved personalization and recommendation options. On show at the IPTV World Forum last week the software is due to ship late summer. The major upgrade comes as operators rush to gain dominance as the critical home hub provider. At the same forum BT Vision announced it would be upgrading its service using the next generation Mediaroom platform

TiVo also announced a partnership with YouTube to enable the streaming of their massive library of user generated video to the TV using a new TiVo box. Apple earlier this year announced an upgrade for its Apple TV set top box which will also include the same ability to mix downloaded VOD content with streamed content from the Internet.

Remarkably there remains little consumer research on how audiences will use these fusion services, nor how best to structure the browser interface to optimize the consumer experience. Also uncertain is how consumers will respond to the inferior quality of online video when blown-up to a full wide-screen TV size.

YouTube has been recently experimenting with HD formats set for PC use. Last week YouTube also launched a white label API which enables publishers to embed video content using their own skin and specifications. The API threatens the many video providers that have grown by letting publishers manipulate their players. The service enables publishers and enterprises to effectively outsource the pain of video delivery to Google's robust video delivery infrastructure.

For more:
- Microsoft preps next generation Mediaroom Article
- TiVo and YouTube to deliver web video to the TV Article

Related articles:
Lounge room wars Article
Apple seeks control of the video home Article

YouTube API enables free web hosting for all

Tue, 18 Mar 2008 07:59:40 -0400

YouTube has launched a powerful API that enables publishers to broadcast video content using their own skin and specifications direct from their own web sites--free. The co-branded API is being pitched at businesses, but also threatens the many video providers that service the custom-player market.

The no-cost service enables publishers and enterprises to effectively outsource the pain of video delivery to Google's robust video delivery infrastructure and will be a boon to firms seeking to deploy video for training and in-house comms. Externally it offers enterprises a branded player with a powerful set of recommendation and other features and potentially enormous distribution to promote and inform.

The offer of what is, in practice, free video hosting is possibly very disruptive to other professional video-hosting platforms such as Move, Brightcove and Yahoo's Maven Networks. While Google says it is not a white label exercise, in reality the co-branded API takes away both the complexity and cost of video delivery.

The API represents a major evolution for the user-generated site. It moves YouTube from a (hugely popular) destination platform to being a highly advanced video publishing infrastructure available to business and publishers alike.

New features in the API include the ability to add and edit user and video metadata as well as localized feeds for the 18 international markets YouTube supports.The new API comes as YouTube is testing HD delivery and as it promises to provide a real-time player later this year. To see the H.264 encoded clip in action compare these low- and high-quality versions of Tillman the skateboarding dog!

For more:
- YouTube Everywhere Blog
- YouTube pitches for business Article

Related articles:
YouTube tests HD Article
YouTube extends to mobile Article
Stage6 video portal closes Article

SPOTLIGHT: YouTube tests HD

Tom Burton — Tue, 04 Mar 2008 06:59:00 -0500

YouTube has been quietly upping its quality, testing a HD version on selected clips. According VideoHelp.com if you add &fmt=6 or &fmt=18 to the end of a video link it returns a H.264 encoded clip at 480×360 resolution with a bit-rate up to 850K. Compare the low and high quality versions. At the same time, owner Google has confirmed it is aiming at a live service some time this year. YouTube co-founder, Steve Chen, confirmed a 2008 timetable to pop17.com video blogger Sarah Meyers. Live HD backed by Google will scare anyone trying to make it in the video conferencing world.

Breaking: Microsoft bids $45 billion for Yahoo

Tom Burton — Fri, 01 Feb 2008 07:53:19 -0500

Microsoft has bid $45 billion for the Yahoo business in a unsolicited bid for the internet portal. The bid represents a 61 per cent premium to the Yahoo closing price of $31. The offer if successful would represent the biggest tech deal ever. Combined the organisation would offer an alternative to advertisers from Google. Below is the letter Microsoft sent to the Yahoo board yesterday evening and follows a breakdown in talks early last year.

January 31, 2008

Board of Directors
Yahoo! Inc.
701 First Avenue
Sunnyvale, CA 94089
Attention: Roy Bostock, Chairman
Attention: Jerry Yang, Chief Executive Officer

Dear Members of the Board:

I am writing on behalf of the Board of Directors of Microsoft to make a proposal for a business combination of Microsoft and Yahoo!. Under our proposal, Microsoft would acquire all of the outstanding shares of Yahoo! common stock for per share consideration of $31 based on Microsoft’s closing share price on January 31, 2008, payable in the form of $31 in cash or 0.9509 of a share of Microsoft common stock. Microsoft would provide each Yahoo! shareholder with the ability to choose whether to receive the consideration in cash or Microsoft common stock, subject to pro-ration so that in the aggregate one-half of the Yahoo! common shares will be exchanged for shares of Microsoft common stock and one-half of the Yahoo! common shares will be converted into the right to receive cash. Our proposal is not subject to any financing condition.

Our proposal represents a 62% premium above the closing price of Yahoo! common stock of $19.18 on January 31, 2008. The implied premium for the operating assets of the company clearly is considerably greater when adjusted for the minority, non-controlled assets and cash. By whatever financial measure you use - EBITDA, free cash flow, operating cash flow, net income, or analyst target prices - this proposal represents a compelling value realization event for your shareholders.

We believe that Microsoft common stock represents a very attractive investment opportunity for Yahoo!’s shareholders. Microsoft has generated revenue growth of 15%, earnings growth of 26%, and a return on equity of 35% on average for the last three years. Microsoft’s share price has generated shareholder returns of 8% during the last one year period and 28% during the last three year period, significantly outperforming the S&P 500. It is our view that Microsoft has significant potential upside given the continued solid growth in our core businesses, the recent launch of Windows Vista, and other strategic initiatives.

Microsoft’s consistent belief has been that the combination of Microsoft and Yahoo! clearly represents the best way to deliver maximum value to our respective shareholders, as well as create a more efficient and competitive company that would provide greater value and service to our customers. In late 2006 and early 2007, we jointly explored a broad range of ways in which our two companies might work together. These discussions were based on a vision that the online businesses of Microsoft and Yahoo! should be aligned in some way to create a more effective competitor in the online marketplace. We discussed a number of alternatives ranging from commercial partnerships to a merger proposal, which you rejected. While a commercial partnership may have made sense at one time, Microsoft believes that the only alternative now is the combination of Microsoft and Yahoo! that we are proposing.

In February 2007, I received a letter from your Chairman indicating the view of the Yahoo! Board that “now is not the right time from the perspective of our shareholders to enter into discussions regarding an acquisition transaction.” According to that letter, the principal reason for this view was the Yahoo! Board’s confidence in the “potential upside” if management successfully executed on a reformulated strategy based on certain operational initiatives, such as Project Panama, and a significant organizational realignment. A year has gone by, and the competitive situation has not improved.

While online advertising growth continues, there are significant benefits of scale in advertising platform economics, in capital costs for search index build-out, and in research and development, making this a time of industry consolidation and convergence. Today, the market is increasingly dominated by one player who is consolidating its dominance through acquisition. Together, Microsoft and Yahoo! can offer a credible alternative for consumers, advertisers, and publishers. Synergies of this combination fall into four areas:

Scale economics: This combination enables synergies related to scale economics of the advertising platform where today there is only one competitor at scale. This includes synergies across both search and non-search related advertising that will strengthen the value proposition to both advertisers and publishers. Additionally, the combination allows us to consolidate capital spending.

Expanded R&D capacity: The combined talent of our engineering resources can be focused on R&D priorities such as a single search index and single advertising platform. Together we can unleash new levels of innovation, delivering enhanced user experiences, breakthroughs in search, and new advertising platform capabilities. Many of these breakthroughs are a function of an engineering scale that today neither of our companies has on its own.

Operational efficiencies: Eliminating redundant infrastructure and duplicative operating costs will improve the financial performance of the combined entity.

Emerging user experiences: Our combined ability to focus engineering resources that drive innovation in emerging scenarios such as video, mobile services, online commerce, social media, and social platforms is greatly enhanced.

We would value the opportunity to further discuss with you how to optimize the integration of our respective businesses to create a leading global technology company with exceptional display and search advertising capabilities. You should also be aware that we intend to offer significant retention packages to your engineers, key leaders and employees across all disciplines.

We have dedicated considerable time and resources to an analysis of a potential transaction and are confident that the combination will receive all necessary regulatory approvals. We look forward to discussing this with you, and both our internal legal team and outside counsel are available to meet with your counsel at their earliest convenience.

Our proposal is subject to the negotiation of a definitive merger agreement and our having the opportunity to conduct certain limited and confirmatory due diligence. In addition, because a portion of the aggregate merger consideration would consist of Microsoft common stock, we would provide Yahoo! the opportunity to conduct appropriate limited due diligence with respect to Microsoft. We are prepared to deliver a draft merger agreement to you and begin discussions immediately.

In light of the significance of this proposal to your shareholders and ours, as well as the potential for selective disclosures, our intention is to publicly release the text of this letter tomorrow morning.

Due to the importance of these discussions and the value represented by our proposal, we expect the Yahoo! Board to engage in a full review of our proposal. My leadership team and I would be happy to make ourselves available to meet with you and your Board at your earliest convenience. Depending on the nature of your response, Microsoft reserves the right to pursue all necessary steps to ensure that Yahoo!’s shareholders are provided with the opportunity to realize the value inherent in our proposal.

We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.

Sincerely yours,

/s/ Steven A. Ballmer

Steven A. Ballmer

Chief Executive Officer

Microsoft Corporation

Content deals everywhere

Tue, 08 Jan 2008 06:59:10 -0500

The device space may be white hot, but there is similar feverish collaboration under way among the content players, with numerous media brands announcing distribution and alliance deals for the new year. Some are simple content swaps such as the New York Times and CNBC deal, others are platform deals such as Sony's decision to drive a number of ad-supported channels through Google's, YouTube.

Also significant was the Microsoft announcement of a partnership to make available ABC Disney and MGM programming through its Xbox 360 box. The programs will be available in both standard and high definition.

Samsung also announced a deal to enable Samsung P2 portable video users to download video content from Starz's Vongo service for mobile viewing.

But it was the decision of video aggregator Veoh to quietly integrate content from the News Corp/NBC video portal Hulu, which probably was most significant.

Hulu enables video to be embedded in any site and the move by Veoh to integrate Hulu content without any deal marks a further break down of the proprietary distribution model which has characterized the media industry for 50 years. The separation of distribution from creation has been under way for some time through RSS feeds and embedded media, but the move by Veoh will challenge traditional media companies like News and NBC who have in past vigorously defended their right to determine who will carry their content.

For More:
- The end of Exclusivity NewTeeVee Essay
- Microsoft to carry Disney and ABC Article
- NYT an CNBC to share content Article
- Samsung to work with Vongo Article

Related articles:
- Babelgum does a raft of content deals Report
- Joost gets Viacom content Report

Fighting fire with video

Tue, 11 Dec 2007 06:59:30 -0500

While most focus on the IPTV space has been around the delivery of residential media a number of enterprises are now deploying a IP video solutions for internal communications and training.

Portland's Fire and Rescue service is rolling out an IP video network to teach firefighters to effectively and safely respond to emergency situations. Portland's steaming solution augments its current analog closed circuit cable system. Portland Fire is using Optibase's H.264 Media Gateway 1100 box to encode and stream at low bit rates directly to three fire stations not currently on their analog cable system. Previously Portland Fire would record the analog video on DVD and send copies to all the stations not on the analog system.

Portland is an example of the increasing use of IPTV solutions at the enterprise level: NASA's Dryden Flight Research Center, uses an IPTV solution to stream both TV channels and live feeds of flight test. The multi screen player allows officers to track important flight test from multiple angles. And in the UK the Humberside Police transmit live video feeds from a helicopter, providing coverage across an area of 1,365 square miles. The feeds are distributed across the force's LAN and can be monitored on multiple PC clients by any authorized personnel in real-time.

For more:
- Portland Fire and Rescue opts for Optibase Release

Related articles:
- Enterprise YouTube planned for Google Apps Report
- IPTV a priority for telcos Release

SPOTLIGHT: PV to power Google phone video

Tue, 11 Dec 2007 06:59:00 -0500

California based Packet Video (PV) is to deliver the multimedia backbone for Google's Android device platform. The ten year old company is owned by NextWave and joined the open handset alliance as a foundation member and has extensive experience in the mobile video space. PV supplies the multimedia software that drives Verizon Wireless' VCAST music and video services, NTT DoCoMo's 3G FOMA service and Orange's Orange World and claims to be installed on over 100 million handsets. Release

Two (YouTube) videos a day now the norm

Tue, 04 Dec 2007 06:59:30 -0500

The average online video viewer in September consumed 68 videos--more than two per day--according to the latest report from comScore Video Metrix. ComScore also found nearly 136 million Americans, or approximately three in four U.S Internet users, viewed online video in September.

The report found that yet again Google, through YouTube, dominate the video media landscape with the largest online video audience of 71.6 million unique viewers. This was followed a long way behind by Fox Interactive Media with 41.2 million viewers and Yahoo with 39.6 million. Nearly 70 million people viewed more than 2.5 billion videos on YouTube.com, while 38 million people viewed approximately 360 million videos on News Corporation's MySpace.com.

Internet users watched an average of three hours of online video during September and the average online duration was 2.7 minutes.

At the same time a separate report from Bain & Company suggests US viewers will watch an additional 2 hours of TV per week by 2012 spurred on by video-on-demand & the use of digital video recorders. This would suggest TV watching is in fact growing faster than web TV.

For More:
- TV watching grows faster then internet video Report
- YouTube Dominates Internet Video, with 27.3% Share Report

Related Articles:
- YouTube goes mobile Report
- Watching YouTube at your peril Report

Google TV coming your way

Tue, 27 Nov 2007 06:59:50 -0500

At the risk of making this yet another Google watch site, it did not take long for commentators to join the dots from Google's mobile and social network plays to the mother of them all, TV.

TV, of course, remains the last bastion of traditional linear media with manufacturers only just now starting to build ports to connect screens to the internet. Video on the PC is surging, but apart from the limited few now enjoying IPTV services, internet TV remains a dream.

Still to be sorted is what box will do the connecting--game console, set top box, media PC ? And how the whole navigation and browsing thing will work--remote control, touch screen, key pad? Then of course there is the question of the consumer experience. Microsoft's Web TV experiment proved that whatever works on the the PC (eg. email) does not necessarily work when you are on the sofa with the kids/partner/friends/dog. The reality is we don't really know what works, which means that to date there is virtually no real purpose-built content that everyone can agree will make internet TV worth connecting to.

Enter the friends from Google, who if the Techcrunch blog is to be believed, have a bunch of people on the problem as we speak--well at least the advertising part of it. Using the same model as mobiles and social networks the strategy would be for Google to build a (free) open platform for developers to then hang off their various apps and, of course, for Google to distribute its ads. Put it into a game console, STB or media PC and as long as it real simple to use, voilà. Think how iPods made the online music thing work and you get the picture.

Colin Dixon from the Diffusion Group predicts 160 million TVs globally will be internet connected over the next five years (compared with 40 million IPTV connections in the same period) so the prize for getting it right is truly huge.

Yet again it looks like being Microsoft vs. Google as this has been an area where Richmond has long played, albeit in fits and starts and usually embedded as part of a proprietary system, in a telco TV box or soon in Microsoft's own Xbox 360. Stay tuned!

More Reports:
- The Google Set-Top Box (Think Android For TV) Report

Related articles:
- Technology Cold War Report
- Google snags IPTV executive Report

ALSO NOTED: blinkx challenges Google video ads;BBC iPlayer to use Adobe Flash; and much more ...

Tue, 16 Oct 2007 06:58:20 -0400

> Online video search service blinkx is taking on Google with the launch last week of a video advertising platform to challenge Googles video units, also launched the day before. Press release

> The BBC outlined a number of developments for iPlayer in a management briefing, including a strategic partnership with Adobe. The broadcaster will use Adobe's Flash software to underpin its free iPlayer on demand service by the end of 2008. Article

> Four IPTV equipment providers, UTStarcom, ZTE, Huawei and Alcatel Shanghai Bell have been authorized by China's Ministry of Information Industry to supply their products to the local market. China Netcom is expected to use the AVS standard in its IPTV deployment in order to avoid patent fees on foreign standards such as MPEG-4 and H.264. Report

And finally... On the day they had contracted to run advertisements placed by CNBC, two Web sites owned by Dow Jones & Company instead ran ads for that cable business channel's new competitor, the Fox Business Network. The owner of the new business channel is Rupert Murdoch's News Corp. which successfully negotiated to buy Dow Jones earlier this year. Article