Home Media Magazine - August 19-25, 2007 - (Page 14)

ELECTRONIC DELIVERY www.homemediamagazine.com Google Video Ends Downloads By Erik Gruenwedel ighteen months after proponents claimed Google Video would democratize the film-distribution business, parent Google Inc. has pulled the plug on the venture’s download-to-own/download-to-rent (DTO/DTR) component. The Mountain View, Calif.-based search behemoth last week sent e-mails to users informing them of the pending closure and reportedly offered credits to users who purchased content prior to July 18. The nascent market for downloading movies and television content from the Internet has received major press. However, sales generated by third-party sites, including Apple’s iTunes, represent a minute fraction of total filmed-entertainment revenue. “Reaffirming our commitment to building out VEOH FILES SUIT AGAINST UMG By Erik Gruenwedel L E G A L Veoh Networks has filed a preemptive lawsuit against Universal Music Group to underscore its compliance with the Digital Millennium Copyright Act (DMCA). The suit, filed Aug. 9 in U.S. District Court in San Diego, seeks a declaration that video-sharing site Veoh.com has not infringed on UMG’s copyrights and is entitled to safe harbor under the DMCA against any claims brought by UMG. The complaint seeks no monetary damages. “It is unfortunate that UMG prefers to take actions that are designed to stifle innovation, shut down new markets and maintain the status quo instead of working to change and evolve models for today and the future,” Veoh CFO Steve Mitgang said. San Diego-based Veoh, which offers a free downloadable digital video recorder (VeohTV), claims video content from more than 85,000 content providers, including Paramount Pictures, Lionsgate and PBS. A representative from UMG was not available by press time, but a source familiar with the matter said the music company has no pending legal action against Veoh and isn’t planning any. The source said UMG was in negotiations with Veoh to establish a license agreement similar to a deal it has with YouTube and others. “We wake up one day, and they’ve launched a suit against us,” the source said. E our ad-supported monetization models for video, Last October Google appeared to sense a need we have decided to remove the DTO/DTR feature for ad-supported video when it paid $1.65 billion on Google Video,” said spokesperson Gabriel to acquire video-sharing site YouTube. “Google Video was a failure,” Charlene Li, an analyst with Forrester Research told The Los Angeles Times. “They focused on video while YouTube focused on community around video.” Stricker said Google envisions most user-generated and premium video content being hosted on Stricker. YouTube. He said Google and YouTube continue to “We also envision YouTube benefiting from fuexplore ways to monetize online video content — ture Google Video innovations — especially those from pilot testing AdSense for video syndication involving video search, monetization and distrito trying various ad formats on YouTube. bution,” he said. “The download-to-own/rent feature was an imLast week market research firm Parks Associportant test,” Stricker said. “The current change ates found that just 13% of consumers polled is a reaffirmation of our commitment to building found video downloads reasonably priced and out our ad-supported monetization models for 16% said the selection of online videos was good. video.” (See story below.) Study: Online Content Is Key for Web By Chris Tribbey R E S E A R C H Just four years ago, Internet users spent a majority of their time using the Web for communicating. Now, content is king. Internet industry trade firm Online Publishers Association (OPA) conducted a four-year analysis of Internet activity using Nielsen/NetRatings. The study found that Web users are watching, reading and listening to Web sites 47% of the time they’re online, up from 34% in 2003. Conversely, while people were using the Web for communication 46% of the time in 2003, now they’re only online for that reason 33% of the time. Web users are online searching 5% of the time, up from 3% in 2003. A faster, more easily accessible Internet, the growing popularity of online video, easy search tools and the availability of more content were reasons listed by OPA for the changes. U.S. VIDEO DOWNLOAD EXPERIENCE In thinking about your experience with downloading video online, would you agree with the following statements? I am generally satisfied with the videos I have downloaded from the Internet 12% 21% 10% 19% I plan on downloading videos from the Internet in the future The selection of videos sold as downloads on the Internet is very good 10% 16% I Video downloaders not using P2P networks I All video downloaders The quality of the videos I have downloaded from the Internet is usually very bad 10% 14% The price of videos sold as downloads on the Internet is reasonable Source: Global Digital Living II © 2007 Parks Associates 9% 13% 0% 5% 10% 15% 20% 25% 30% 300 % of Households Agreeing Report: Consumers Are Lukewarm To Online Video Downloading By Erik Gruenwedel R E S E A R C H Unlike music, electronic sellthrough of movies and television programs has not caught on with consumers in the United States, according to a new research report. The study by Parks Associates, a Dallas-based market-research firm, found that only 16% of consumers found the available selection of downloadable movies via third-party sites on the Internet satisfactory. Just 13% said video downloads were reasonably priced and less than 20% of consumers who had downloaded video content said they would do it again. TOP ONLINE TITLES Week ended August 13, 2007 TITLE STUDIO ELECTRONIC SELLTHROUGH BRIEFS I NETFLIX STREAMING SERVICE HACKED Netflix Inc.’s View It Now PC-based movie streaming service, protected by Digital Right Management (DRM) software from Microsoft, has reportedly been hacked. An online hacker named Dizzie allegedly outlined 14 steps needed to circumvent Microsoft’s DRM from the content, according to a report by IDG News. A Netflix spokesperson was not immediately available for comment. —Erik Gruenwedel «SURE, [DOWNLOADING SERVICES] SAVE A TRIP TO THE VIDEO STORE, BUT IT TAKES LONGER, LOOKS WORSE AND YOU END UP WATCHING IT ON A 17-INCH SCREEN» JOHN BARRETT, PARKS ASSOC. The report cited two major sources for video downloads: Illegal peer-topeer file-sharing networks and licensed services such as Apple’s iTunes Music Store. John Barrett, director of research at Parks, said the low consumer marks were as much the result of illegally obtained poor-quality videos as dis- satisfaction with the entire process. “People don’t see a reason to use video-downloading services,” Barrett said. “Sure, it saves a trip to the video store, but it takes longer, looks worse and you end up watching it on a 17-inch screen.” He said niche electronic sellthrough markets would emerge over time, but overall, consumers still prefer packaged media for their home entertainment. “That’s good news for DVD makers, perhaps, but certainly not the feedback that online distributors like Apple are hoping for,” Barrett said. 300 RENTAL DOWNLOADS Warner Paramount Shooter Week ended August 12, 2007 TITLE STUDIO ELECTRONIC SELLTHROUGH 300 RENTAL DOWNLOADS Warner Warner TMNT FOR COMPLETE CHARTS, PLEASE SEE PAGE 34 14 Home Media Magazine August 19–25, 2007 http://www.homemediamagazine.com http://Veoh.com

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Contents News News/Box Office News TV DVD Q4 Preview Reviews Pipeline Research Top 20 DVD Sellers Top 20 Rentals and Top 10 Charts Just Announced

Home Media Magazine - August 19-25, 2007

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