The transition from cable to Internet for television is strong and quick. On the heals of HBO and CBS, premium channel Starz is pondering offering a cable-free streaming option. Starz CEO Chris Albrecht said on an earnings call,
While you will hear more from us on this over time, I can tell you now that we have the content right (and) the technology platform and infrastructure in place to ensure that the Starz businesses are positioned to capitalize on these new opportunities, both here in the U.S. and abroad.
One of the major hurdles for these companies in creating standalone streaming services is having the rights to offer their content to non-cable subscribers. For example, NBC does not own the streaming rights to Saturday Night Live, and they lost the show to Yahoo!. In Albrecht's comments he mentions that they have the rights to pull this off.
He also says that they have the ability to release this, with content, outside of the US. That will make international viewers happy, as securing these rights is usually difficult for multiple countries. Either Starz has been preparing for this in their contracts for years, or they have really focused down recently and renegotiated their licensing deals over the past few months to allow this to happen. Either way, this is even more reason for Hungarians to be excited about their win.
So, with all of the standalone streaming services launching there are two important questions to ask: is there enough content available for you to dump your cable subscription and which services will you be using to supplement that content? Let us know in the comments.
We've seen Internet taxes proposed across the world before, but they infrequently get implemented and the ones that do infrequently last. This is the case in Hungary, whose proposed Internet tax has officially been abandoned. The Primi Minister, Victor Orbán, made the announcement following protests in the tens of thousands of participants were held across the country.
The abandonment, however, comes with a caveat: he said that there will be no Internet tax in this form, not that the concept of some sort of Internet tax was being abandoned. This means that the Hungarian people will not see a $0.62 per gigabyte of used bandwidth, but could still see some sort of tax applied in the future.
The concept of a bandwidth-based tax on wired connections is especially offensive. Here in the office, on an average week, we consume several hundred gigabytes of bandwidth just in Hulu and Netflix usage. It is not unusual to run 6 or more hours of video streaming per day; assuming full HD (~8GB per hour), that is 336 GB per week, or $208.32 in additional taxes under the abandoned plan. That is just for the usage via streaming services, not our Internet usage as a whole.
As the usage of Internet is increasingly video-based, and the quality available from these services increases, that number would only go up. Because of this, it is a great move for the government to abandon the plan in this form. A new plan could be formed in January 2015, as the government is planning a national consultation on the topic.
Either way, it is good to see the government listened to its people. The protesters celebrated their victory Friday night, following their success story with another street gathering.
Because Valve underestimated the complexities of developing a specialized operating system, SteamOS has been delayed until, let's say 2015. However, if their other software projects are any indication, seeing the platform launch before 2017 would be pretty amazing. Unfortunately, unlike their normal inability to estimate the scope of a software project, this one has hardware partners losing money every day the platform is delayed.
At E3 2014, Steam Machine partner Dell announced that their Alienware Alpha console would release without SteamOS this Holiday if the platform was not ready for primetime. As expected, the platform is not ready and Alienware has officially given up waiting for its release, putting the living room PC up for pre-order, with a shipping date this month.
Rather than SteamOS, the Alpha will ship with Windows 8.1 and Steam Big Picture pre-installed. This decision will come as a blow to Valve CEO Gabe Newell, who famously said Steam games wouldn't run on Windows 8. Another part of the Steam Machine platform that is missing is the controller, which Dell has decided to replace with an Xbox 360 controller for the Alpha. Based on what we have seen of the odd design of the Steam controller, this is probably a huge upgrade for owners.
One of the big benefits of the operating system switch is the incredible increase in game availability. In using SteamOS, had it been ready, the console would have had access to approximately 11 percent of the Steam game catalog. By dumping SteamOS and going Windows instead, the Alpha will have access to 100 percent of the Steam game catalog. Yes, you read that right: by not using Valve's own OS you will gain more access to Valve's game catalog.
Also, with Windows 8.1, you gain access to the entire Microsoft library of games, both desktop and modern. This includes content from Valve competitor EA Origin, as well as anything available in the Windows Store, whose collection of games and media content is far greater than that available for Linux (the basis for SteamOS). No matter how you slice it, this transition from Linux to Windows appears to be an upgrade.
Thursday night, Microsoft announced the Microsoft Band, and new health-related wearable from Redmond. The device has a very Modern design, a very Modern interface and a collection of health sensors: some fairly common, like heart rate, and others fairly unique, like UV sensor. The accompanying application platform, Microsoft Health, has compatibility with the Big 3 mobile platforms: Windows Phone, iOS and Android. The device was available Friday morning at Microsoft Store locations and online.
Almost immediately, the device was sold out online and physical Microsoft Stores had lines outside to pay for the new device. While some will say that Microsoft is keeping a limit on the supply to keep demand up, the success rate of that tactic has been less than stellar for any manufacturer in the past. The number one goal of a company with a product is to get that product into the hands of consumers, and no amount of "Out of Stock" headlines will help with that goal - it will only drive your customers to find a similar alternative. So, why is Microsoft out of the Microsoft Band already?
The reality is, this device, like the Surface, is not intended to be a stand-alone successful product. Instead, it is a marketable prototype designed to show off a different way of thinking to their partners. In the case of the Surface, it was about challenging their manufacturers, who license Windows from them, to create unique hardware concepts. Because of this, we have a thriving market of unique Windows hardware, from the Surface and ASUS Transformer Book to the Lenovo ThinkPad Yoga line, you can get a computer that matches your needs. More importantly, though, is the increase in options based on a Microsoft-licensed platform.
The Microsoft Band is the same thing, just with a focus on encouraging its hardware partners to build Microsoft Health-based products instead of Windows. In the announcement post, Corporate Vice President Todd Holmdahl said,
Microsoft Health is designed to benefit our partners in many ways. For new entrants and startups we have a complete offering that includes our app, and APIs as well as cloud storage for their data. Existing services can upload their data to Microsoft Health and take advantage of our advanced algorithms and the powerful machine learning from our Intelligence Engine to give their customers insights. New devices can license our 10 wrist-worn sensor modules to gather robust data including active heart rate, sleep and GPS.
So, for Microsoft, the idea was not to build a product to compete with the lines of Fitbit, but instead to show what Fitbit could do with the power of Microsoft Health at its back. This includes both the licensing of the sensor array and the use of Microsoft Health, which includes all of the incredible Azure-based machine learning technology that has made Cortana, Bing and the Xbox One so powerful. When your goal is to license the technology, also attempting to crush the competition would go a long way towards negating your primary goal.
This still doesn't exactly explain the supply shortage that Microsoft is currently experiencing, or does it? Actually, it does. As with the original Surface launch, Microsoft massively under estimated the demand for what they consider a marketable prototype. Most likely, the company expected a number of developers and Microsoft die-hards to purchase the device, along with some of their "competitors," but did not expect the lines in the stores from people who were not already Microsoft-focused consumers. Again, as with the Surface, I suspect we will see production increase and future generations of the technology produce more initial quantities.
The nice thing about having a semi-successful hardware product, with the intention of selling other hardware companies a software product is, if the Microsoft Health platform is completely ignored by the likes of Fitbit and Jawbone, Microsoft can simply start to market the Band and sell it as they have done the Surface Pro 3: successfully. Backup plans are always a good thing.
TuneCore, a widely-known distribution company, has launched a new project for artists to make money using YouTube. Musicians that have unlicensed music on YouTube can now sign up to YouTube Money and gain ad revenue from these songs.
Here's how it works. Users can pick what songs need to be searched on YouTube. TuneCore's system then jumps deep into YouTube, searching for uses of the track that aren't licensed. Upon identification of the videos, the clips are then monetized and the money made from the video is placed into the artist's account with TuneCore.
TuneCore's CEO Scott Ackerman spoke on the need for YouTube Money.
As YouTube's importance as a point of distribution increases, we want to ensure Artists are receiving the full benefits. With YouTube Money, we're confident TuneCore can help artists by collecting the YouTube revenue artists have earned while artists can focus on what's most important-making music and getting their music out to the world.
Unlicensed music on YouTube is certainly a point of contention for many artists out there, and this service certainly seems to help with that. I do like that instead of videos being muted for an infringing track, the video can simply be monetized for the artist This helps when tracks are playing in the background while a certain show is out on location and they cannot control what happens around them. On the other side, YouTube already does this natively, but I suppose it's better if the major labels aren't getting 90 percent of the revenue from those videos.
To date, TuneCore, prior to naming this program, paid out over $32 million over the past quarter, up 13.2 percent from the last year. TuneCore only charges users $25 per song you want to hunt down on YouTube via YouTube Money.
After the Microsoft-Nokia deal closed earlier this year, we knew it was only a matter of time until we'd see our first rebranded smart device. After announcing it earlier this year, a small Nokia blog post hinted at the debut of such hardware.
Consumers will also have noticed many of the Nokia apps on their Windows Phone slowly being renamed with the Lumia prefix. Over the next quarter, we'll be seeing a bunch of new Lumia devices hit shelves worldwide. The new Microsoft Lumia name will be taking over and it will start with a device launching "soon," according to a Nokia blog on the subject.
However, that doesn't mean Nokia is going away. The company still owns the rights to the name, and will be using it for all Here map-related things, among other projects like the NSN network equipment services and all patent licensing. Speaking of patents and licensing, the Nokia name won't be leaving the mobile market entirely either. Microsoft will still be launching Nokia-branded, entry-level phones, like the Nokia 130. Nokia will also be able to launch Nokia-branded smartphones, but not until 2016 according to the acquisition deal.
SVP of Marketing, Tuula Rytila, also wanted to mention in the blog that support of current Nokia Lumia phones won't be going away. As expected, Nokia falling into the Microsoft umbrella just means a more symbiotic relationship for the two companies, and updates and warranties will continue to be supported for all current devices, including the recently-launched Lumia 830 and 730.