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Daily Clips - January 15, 2009 (Franchise Broadcast)
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Wall Street Journal 1/14/2009
Blockbuster Offers Videos Via Internet
Following the lead of competitor Netflix Inc., Blockbuster Inc. plans to expand its digital reach by offering access to its video library through a variety of electronic devices.
The Dallas-based movie-rental company is expected to announce Wednesday a partnership with Sonic Solutions Inc. to offer movies for rent and for sale on a variety of broadband-connected digital devices, including personal computers, mobile phones, Internet-connected televisions and Blu-ray disc players.
The library of offerings will be a combination of titles from Blockbuster and CinemaNow, the movie downloading service Sonic acquired late last year.
Kevin Lewis, senior vice president of digital entertainment for Blockbuster, said the company hopes to offer its content in as many places as possible.
"We want it to be ubiquitous," he said. But there are limitations; Mr. Lewis said users expecting a "cinematic experience" might find that difficult to achieve on a mobile phone, for example.
Blockbuster is attempting to match the advances of Netflix, which has struck deals to make its online video service available on devices such as Microsoft Corp.'s Xbox 360 game console, Blu-ray disc players and television sets. Netflix also offers its titles on TiVo Inc. digital video recorders.
Blockbuster intends to make the content easily transferable between devices. For example, by registering the device and account, a consumer would be able to start watching a movie on an Internet-connected Blu-ray DVD player and later watch the remainder of it on a personal computer. Blockbuster will also allow users to download a rented video and watch it on a device not connected to the Internet.
Tom Adams, president of Adams Media Research, said Blockbuster has an "enormous advantage in their brand name and longtime customer relationships." Although Blockbuster lags behind Netflix, Mr. Adams says that digital video viewing is still a small enough portion of the market that Blockbuster "hasn't missed the opportunity."
The rental business was more than $9 billion last year, according to Mr. Adams. Internet on-demand video remains a small slice, but it grew considerably over the past year, from $28.4 million in 2007 to $88.5 million in 2008. Blockbuster accounts for roughly 40% of the $5.5 billion store business, Mr. Adams said, while Netflix has more than 70% of the $2.2 billion subscription-rental business.
Wednesday's announcement is the latest in a string of new initiatives for Blockbuster. Last November, the company introduced a set-top box with on-demand video functions. The hardware, dubbed a digital media player, is free currently with the purchase of a 25-rental package for $99.
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Dallas Morning News 1/14/2009
Blockbuster deal widens video services to variety of devices
By ANDREW D. SMITH / The Dallas Morning News
Last summer, Blockbuster Inc. began letting customers download movies onto their PCs.
A couple months later, it began selling set-top boxes that let customers download movies straight to their TVs.
Now the Dallas-based company hopes to transform that trickle of options into a flood.
Blockbuster has signed a far-reaching partnership deal with Sonic Solutions, a company with technology that can bring a Blockbuster-branded video service directly to HDTVs, Blu-ray players, cellphones, Apple computers, video game consoles and almost any other device with a screen.
The first fruits of the deal should appear next quarter, when Blockbuster's online movie store will begin working on Apple computers and Web-enabled TVs from Vizio, Sony, Samsung and LG.
And that's just the start.
"We'd love to team up with TiVo and cable providers to increase the number of movies that their customers can receive on demand," said Kevin Lewis, senior vice president for digital entertainment at Blockbuster.
"We're talking to a number of possible partners, and we plan to talk to many more. We want to make it easy for customers to access us whenever they want, wherever they want, with whatever device they want."
Sonic technology already powers video on many platforms, including BlackBerry phones. Indeed, the company's video platform could let users transfer rented content from screen to screen – if studios allowed it.
"We do all the heavy lifting on our end, not on the user end, so we have the technical ability to move content around in pretty much any way you can imagine," said Mark Ely, Sonic's vice president for strategy.
"The hard part is getting permission from the movie studios to do things like that. They are understandably cautious about protecting their property, but we'll eventually hammer out deals that work for everyone."
Ideally, Blockbuster and Sonic want to assemble an electronic video store that looks and works the same on every device: same selection, same prices, same navigation. Such an operation would require the studios to greatly simplify their distribution system, however, so customers probably won't see it anytime soon.
Until then, the partners will help customers navigate the complexities of Hollywood distribution as they work to expand a list of offerings that will start off with around 10,000 titles – five times the number that were initially available on Blockbuster's set-top box.
Blockbuster and Sonic won't disclose the financial details of their partnership, except to say it's written such that more downloads equals more money for both.
But more money is still a relative term for electronic video delivery at Blockbuster. Physical discs, sold or rented in brick-and-mortar stores, still account for the overwhelming majority of the company's business.
The Sonic deal, along with Blockbuster's other electronic efforts, stems more from the desire to be prepared for the long term than the desire to make a quick buck.
============================================================================================================
Reuters 1/14/2009
Blockbuster, Sonic Solutions in Web movie alliance
By Sue Zeidler
LOS ANGELES, Jan 13 (Reuters) - Blockbuster Inc (BBI.N: Quote, Profile, Research, Stock Buzz), trying to keep pace with rival Netflix Inc (NFLX.O: Quote, Profile, Research, Stock Buzz) and others in the fledgling digital movie sector, on Tuesday said it reached a deal with Sonic Solutions (SNIC.O: Quote, Profile, Research, Stock Buzz) to provide thousands of films to various devices.
Blockbuster will offer 10,000 premium films and 40,000 digital titles altogether to Windows and Mac-enabled computers, portable media players, Blu-ray Disc players, personal video recorders (PVRs), set-top boxes, mobile phones and Web-connected TV sets through technology owned by Sonic Solutions, which recently bought CinemaNow, an online movie pioneer.
Sonic Solutions and Blockbuster are collaborating with a many consumer electronic companies, including Sonic's existing CinemaNow partners, such as Dell (DELL.O: Quote, Profile, Research, Stock Buzz), Archos (ARCH.PA: Quote, Profile, Research, Stock Buzz) among others.
James McQuivey, analyst with Forrester, said the alliance improves Blockbuster's competitive stance in the fledgling online delivery space.
"Netflix pioneered the idea of putting the service into more than one device. Blockbuster is trying to reassure technology partners that they are eager to get into the space," he said.
Blockbuster on Tuesday said it was considering a digital subscription offering down the road, but was sticking for now to offering films digitally on an a la carte basis via streaming and downloading.
Tom Adams, of Adams Media Research, said because Blockbuster offers films on an ala carte basis, it will have newer quality content than Netflix, which is often criticized for offering older titles.
Netflix has faced challenges in obtaining the rights from Hollywood studios to provide newer films digitally because it is offering them through a subscription basis and Hollywood has more restrictions when licensing movies digitally for subscription services.
"Blockbuster's selection will be better than what Netflix is offering," he said.
"Our goal through this alliance is to have the Blockbuster movie service available in a wide range of devices, beginning as soon as the second quarter of 2009, including PCs, portable media players, Blu-ray Disc players, personal video recorders (PVRs), set top boxes, mobile phones and Web-connected television sets," a Blockbuster spokesman said.
Sonic's CinemaNow will enable us to not only offer progressive downloads, but streaming, via a wide variety of consumer electronic devices.
============================================================================================================
The Associated Press 1/14/2009
Blockbuster downloads CinemaNow for video delivery
By Michael Liedtke
Blockbuster expands digital delivery of video by adopting CinemaNow's downloading system
SAN FRANCISCO (AP) -- Blockbuster Inc. is stamping its brand on CinemaNow's system for delivering movies over the Internet, providing the video rental chain with another avenue for reaching consumers who want to rent and buy movies without traveling to a store.
The alliance with CinemaNow, to be announced Wednesday, accelerates Blockbuster's push to catch up with rival Netflix Inc., which has diversified beyond its DVD-by-mail service by piping more than 12,000 movies and TV shows over high-speed Internet connections.
Dallas-based Blockbuster took its first step toward matching Netflix in late November when it introduced a gadget, made by 2Wire Inc., that connects to television sets and temporarily saves video after it's downloaded over high-speed Internet connections. Netflix already had been marketing a similar box made by Roku Inc.
"We put our toe in the water and now this gives us a significant leap forward in our consumer offerings" for digital delivery, Blockbuster Chairman Jim Keyes said in an interview.
The partnership comes just two months after digital video and audio specialist Sonic Solutions acquired CinemaNow for $3 million from a group of investors that included movie studio Lionsgate and Internet gear maker Cisco Systems Inc. Novato-based Sonic will still oversee the technology powering CinemaNow's re-branded system.
CinemaNow has been around for the past decade, but never gained the name recognition of Blockbuster -- still the largest U.S. video chain even though it has been losing money for years.
By putting Blockbuster's name on CinemaNow's technology platform, Keyes believes consumers will become more interested in the service, encouraging consumer electronics manufacturers to design devices that will make it easier to connect the service to televisions.
Netflix has been pursuing a similar strategy the past year. The Los Gatos-based company's Internet streaming service, called "Watch Instantly," already is compatible with Blu-ray players, Microsoft Corp.'s video game console, the xBox 360, and will soon have built-in access to some flat-screen TVs.
Blockbuster is hoping to further distinguish its digital delivery service by focusing on latest releases available on DVDs. In contrast, Netflix's streaming service mostly serves up video that has been out on DVDs for years or movies that never had much drawing power.
For now, Blockbuster intends to rent digital video on a pay-per-view basis or sell the movies to own. Keyes, though, said the company hopes to develop a subscription plan for consumers who want unlimited access to Blockbuster's digital library.
Netflix provides its streaming service at no additional charge to any customer who pays at least $8.99 per month for the one of the company's DVD-by-mail plans. Most of Netflix's roughly 9 million subscribers meet that criterion.
============================================================================================================
San Francisco Chronicle 1/14/2009
Blockbuster adds partner on digital downloads
By Ryan Kim
Blockbuster is partnering with Sonic Solutions of Novato to bulk up its efforts to deliver digital movies directly to consumers using a new download device.
Under the agreement, Sonic Solutions will merge its recently purchased CinemaNow online delivery service with Blockbuster's digital download service, which includes assets from Blockbuster's purchase of Movielink in 2007. The combined platform will be sold under the Blockbuster name with CinemaNow powering much of the technology behind the scenes.
The new Blockbuster service, available in the second quarter of this year, will offer more than 10,000 movies for purchase or rental and 40,000 video items overall, strengthening its competition against download services from Apple and Vudu, video-on-demand offerings from cable companies and streaming movie services such as Netflix.
Kevin Lewis, senior vice president of digital entertainment at Blockbuster, said the partnership allows Blockbuster to bolster its library while leaning on Sonic's existing relationships with consumer electronics manufacturers.
CinemaNow's service has been built into TiVo boxes, PCs, personal media players from Archos and set-top boxes from Prodea and will appear in a new LG Blu-ray player. CinemaNow also will be incorporated into Yahoo's widget channel for Internet-connected televisions. And last week, Sonic announced a new software development kit to make it easy for consumer electronics manufacturers to build in CinemaNow support.
"We now have the ability across a multiple number of devices to bring content to consumers," Lewis said.
The download devices will be sold through Blockbuster's 7,500 stores, online at blockbuster.com and at other retailers.
While there is some overlap between the two video collections, Lewis said, Blockbuster is stronger on episodic content while CinemaNow has some independent and foreign films. He said the bigger synergy comes from their combined digital rights to movies and their ability to turn those rights into digital assets quickly.
This is the second time in recent months that Blockbuster has partnered with a Bay Area company to advance in the digital download game. In November, it said it was working with San Jose's 2Wire to deploy a new MediaPoint digital media player that delivers Blockbuster movies directly to a customer's television. The player will be integrated into new connected Vizio televisions, and Blockbuster is exploring download kiosks for mobile players.
Mark Ely, executive vice president of strategy for Sonic Solutions, said some integration will need to happen. Over time, the two companies hope to incorporate the new combined service onto existing consumer electronics devices.
Ely said it makes sense to lead with Blockbuster's brand, which is well known as an entertainment provider. He said the deal is well timed, as consumers are still getting used to the idea of paying for digital downloads.
"If you look at digital downloads, it's still a small market but it's poised to expand dramatically," Ely said. "This is an opportunity to get consumers comfortable with digital downloads as new devices are proliferating."
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Video Business 1/14/2009
Blockbuster to expand digitally with CinemaNow
Multi-year deal will allow the rental giant to deliver movies through some of the same devices as rival Netflix
By Jennifer Netherby
Blockbuster is joining with online movie service CinemaNow in a deal to deliver movies to Blu-ray players, Internet-connected TVs, mobile phones and even the iPhone, the two companies will announce Wednesday.
The multi-year preferred provider agreement between Blockbuster and Sonic Solutions, which acquired CinemaNow late last year, will put the rental giant on some of the same devices its main online rival Netflix has already begun streaming its digital movie service through.
The joint service, to be called Blockbuster Powered by CinemaNow, is expected to debut on a variety of devices in the second half of the year. Those initial devices are expected to include the LG Blu-ray player and Internet-connected TVs with the Yahoo!/Intel widget.
Eventually, the two hope to have a full ecosystem so that a Blockbuster customer could download a movie to their Blu-ray player, transfer it to their PC and burn to a DVD through a Sonic Qflix DVD burner or watch it on a mobile phone or other device, all under the Blockbuster banner.
“What this partnership is about is providing a branded entertainment option to get consumers their content into the boxes that surround them without having to get them to organize it themselves,” Blockbuster senior VP of digital entertainment Kevin Lewis said.
Blockbuster already offers movie downloads through its 2007 acquisition of movie download service Movielink, which has been absorbed into Blockbuster.com. Going forward, it will discontinue using Movielink technology in favor of CinemaNow’s in the areas where the two overlap. Blockbuster will continue to operate the online storefront and maintain its digital content deals with studios and suppliers.
“At its core I think this deal allows both of us to focus on what we do best,” Lewis said.
Sonic and the CinemaNow team will focus on the technology and the backend of the service.
The deal is non-exclusive, but Sonic will now primarily push the Blockbuster Powered by CinemaNow brand as it reaches out to consumer electronics companies and retailers for partnerships for CinemaNow, Sonic executive VP of strategy Mark Ely said. Sonic may also adopt the new brand for some of the devices CinemaNow is already available on if device partners agree to the change. CinemaNow offers movie downloads through Xbox 360 game consoles, Archos portable media players and has a deal with TiVo for Disney movies, among other consumer electronics companies.
“The CinemaNow brand will continue for some time,” Ely said. “The idea is to introduce our partners to the Blockbuster brand.”
Sonic also plans to offer Blockbuster movies on the Apple platform, streaming movies from Mac computers to iPhones and iPod Touch players. Lewis said that was part of the reason Blockbuster chose to partner with CinemaNow.
Blockbuster is looking at ways to combine the new download offerings with its existing Blockbuster DVD-by-mail subscription service but rights issues will make it difficult, Lewis said. The retailer offers digital movies as permanent downloads or as video-on-demand rentals, but doesn’t have licensing rights to offer those films on a subscription basis. Premium TV channels Starz, HBO and others have exclusive licensing deals with the major studios to offer video-on-demand movies on a subscription basis for the first decade or so after a film’s release, severely limiting what movies can be offered by digital subscription.
“Our customers want first-run movies,” Lewis said. “It gets tricky in the subscription world. We’re looking at different subscription models, different things to try to interconnect our offerings as much as possible.”
Netflix offers its digital service to subscribers for free as part of their DVD subscription plan. Because of that it doesn’t have rights to stream many new release films, though it has partly gotten around the issue by signing a deal with Starz to stream newer films the movie channel has rights to.
Blockbuster’s service is likely to land on some of the same devices that Netflix and Amazon Video On Demand are already on. Netflix offers its service on Xbox 360 consoles, TiVo HD boxes, LG Blu-ray players, TVs and the Roku player. Amazon is on TiVos, Blu-ray players, TVs and Roku players.
Sonic and Blockbuster are betting on the Blockbuster brand to set them apart.
“The brand matters a lot in a very fragmented brand movie space. More consumers will look to us as a navigator, as a trusted partner in making sure all of this works,” Lewis said.
============================================================================================================
Motley Fool
1/14/2009
When Blockbuster Met Netflix
Rick Aristotle Munarriz
You can't accuse Blockbuster (NYSE:
BBI) of sleeping through the digital
revolution.
The leading
DVD rental chain is taking a bolder step into online video, teaming up with
Sonic Solutions (Nasdaq: SNIC) to beef up its digitally
delivered movie offerings.
Sonic's fledgling
CinemaNow service will be rebranded with Blockbuster's name. It's a good move
for both parties, but investors need to be realistic. Sonic acquired CinemaNow
two months ago for a measly $3 million, after a laundry
list of former stakeholders like Cisco Systems (Nasdaq: CSCO) and film studio Lions Gate
Films (NYSE: LGF) failed to make it
fly.
Blockbuster also
took advantage of the digital-delivery fire sale when it snapped up CinemaNow
rival Movielink two summers ago. Neither service has
gained a whole lot of traction, which would naturally make a cynic curious why
two laggards in digital delivery are better than one.
The new service has a chance, though.
Apple (Nasdaq: AAPL), Amazon.com (Nasdaq: AMZN), and Netflix (Nasdaq: NFLX) command most of the
couch-potato headlines, with Amazon and Netflix in particular inking several deals with gadget
makers to deliver their streams through TVs, Blu-ray decks, and other
home-theater gadgets. Sonic's CinemaNow has many similar deals in place, but it
lacks the spotlight that Blockbuster can deliver by marketing the
multidimensional platform through its chain of stores. Blending both services'
digital video libraries will also give the new product greater
depth.
As it stands, the
product will be a closer match to Amazon.com -- moving a la carte rentals and
outright purchases -- than Netflix, which makes 12,000 of its more than 100,000
titles available at no additional cost to most subscribers. But Netflix may not
be alone in that smorgasbord approach for long.
Blockbuster CEO Jim Keyes told the
Associated Press yesterday that the company "hopes" to develop a subscription
plan for unlimited access to its digital library. That would be a game-changer,
even if it's unlikely to happen anytime soon.
Netflix can offer up thousands of titles
without breaking the bank because the choices consist mostly of television
shows, older catalog titles, and obscure indie films. Major studios are
naturally reluctant to devalue their new releases that way. However, if
Blockbuster is able to sway enough studio bigwigs to give it a shot -- and slap
a price on the product that is reasonable to the consumer, while giving the
content creators a fair bounty -- it could really turn heads, possibly making
Amazon and Apple obsolete in this cutthroat yet nascent market.
The plot's just begun to thicken. Don't you dare leave before the
credits roll.
============================================================================================================
Dallas Business Journal 1/14/2009
Blockbuster deal reflects new media age
Blockbuster Inc. has teamed up with Sonic Solutions to create a platform in which consumers can watch movies via products enabled for viewing on new media technologies such as PCs, portable media players, Blu-ray Disc players, personal video recorders, set-top boxes, mobile phones and Web-connected television sets.
As part of the partnership, Dallas-based Blockbuster (NYSE: BBI) and Marin County, Calif.-based Sonic Solutions (NASDAQ: SNIC) will use resources provided by Marina Del Rey, Calif.-based CinemaNow, a company that specializes in delivering entertainment products to consumers through various new media technologies. Sonic Solutions also specializes in providing movie content through new technologies.
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Additional coverage in regards to Blockbuster/Sonic:
2335541 0114 DallasTXMorningN Blockbuster and Sonic Solutions Team for Int
2335542 0114 WallStreetJourna Blockbuster Offers Videos Via Internet TECHN
2335548 0114 LasVegasNVReview Blockbuster and Sonic Solutions Team for Int
2335567 0114 AtlantaGABusines Blockbuster and Sonic Solutions Team for Int
2335572 0114 PRNewswireCA Blockbuster and Sonic Solutions Team for Int
2336136 0114 KTVTTVChannelFor Blockbuster and Sonic Solutions Team for Int
2336143 0114 NewsBlazeFolsomC Blockbuster and Sonic Solutions Team for Int
2336159 0114 BaltimoreMDBusin Blockbuster and Sonic Solutions Team for Int
2336160 0114 ChicagoILTribune Blockbuster expands digital delivery of vide
2336163 0114 EastBayBusinessT Blockbuster and Sonic Solutions Team for Int
2336165 0114 LosAngelesCATime Blockbuster and Sonic Solutions Team for Int
2336171 0114 AustinTXAmerican PR Newswire Press Releases on Statesman.com
2336191 0114 NewportNewsVADai Blockbuster expands digital delivery of vide
2336216 0114 VenturaCACountyS Blockbuster and Sonic Solutions Team for Int
2336218 0113 CoxnetPhoenixAZ Blockbuster expands digital delivery of vide
2336221 0113 YahooFinanceSunn Blockbuster and Sonic Solutions Team for Int
2336224 0114 AOLMoneyFinanceD Blockbuster and Sonic Solutions Team for Int
2336226 0114 EarthTimesNY Blockbuster and Sonic Solutions Team for Int
2336227 0114 ElPasoTXTimes Alliance to give consumers instant access to
2336240 0114 WTHRTVChannelInd Blockbuster and Sonic Solutions Team for Int
2336255 0114 HollywoodCARepor Blockbuster and Sonic Solutions Team for Int
2336257 0114 MoneyCentralRedm Blockbuster and Sonic Solutions Team for Int
2336258 0114 QuotecomHaywardC Blockbuster and Sonic Solutions Team for Int
2336270 0114 QuotecomHaywardC Blockbuster, Sonic Solutions in Web movie al
2336282 0114 WAVETVChannelLou Blockbuster and Sonic Solutions Team for Int
2336287 0114 WNEPTVChannelMoo Blockbuster and Sonic Solutions Team for Int
2336289 0114 ArizonaRepublicP Blockbuster and Sonic Solutions Team for Int
2336291 0114 MorningCallAllen Blockbuster expands digital delivery of vide
2336296 0114 FoxBusinessNYNY Blockbuster and Sonic Solutions Team for Int
2336299 0114 KGWTVChannelPort Blockbuster and Sonic Solutions Team for Int
2336338 0114 WFAATVChannelDal Blockbuster and Sonic Solutions Team for Int
2336340 0114 HartfordCTCouran Blockbuster expands digital delivery of vide
2336368 0114 MarketWatchNY Blockbuster and Sonic Solutions Team for Int
2336370 0114 OrlandoFLSentine Blockbuster expands digital delivery of vide
2336380 0114 SeattleWAPostInt Blockbuster and Sonic Solutions Team for Int
2336382 0114 ChannelWebNetwor Blockbuster and Sonic Solutions Team for Int
2336389 0114 SouthFloridaSunS Blockbuster expands digital delivery of vide
2336405 0114 HoustonTXChronic Blockbuster and Sonic Solutions Team for Int
2336413 0114 SanFranciscoCACh Blockbuster adds partner on digital download
2336416 0113 MinneapolisMNSta Blockbuster expands digital delivery of vide
2336421 0114 DallasTXMorningN Blockbuster deal widens video services to va
2336433 0113 WTOLTVChannelTol Blockbuster and Sonic Solutions Team for Int
2336447 0114 BreitbartLosAnge Blockbuster and Sonic Solutions Team for Int
2336476 0114 SunHeraldBiloxiM Blockbuster and Sonic Solutions Team for Int
2336517 0114 NewsdayQueensEdi Blockbuster expands digital delivery of vide
2336520 0114 WJRTTVChannelFli Blockbuster and Sonic Solutions Team for Int
2336527 0114 TradingMarketsco Blockbuster, Sonic Solutions in Web movie al
2336530 0114 TradingMarketsco Blockbuster and Sonic Solutions Team for Int
2336559 0114 BloombergNationa And small cap technology companies are turni
2336603 0114 OrlandoFLSentine Blockbuster and Sonic Solutions Team for Int
2336607 0114 WTVFTVChannelNas Blockbuster and Sonic Solutions Team for Int
2336675 0114 RiversideCAPress Blockbuster and Sonic Solutions Team for Int
2336758 0114 BusinessWeek Blockbuster deal widens video services to va
2336762 0114 KTXL-TV(FOX)CH40 Blockbuster come up with a plan to catch up
2336788 0114 WFAATVChannelDal Blockbuster deal widens video services to va
2336798 0114 CoxnetRhodeIslan Blockbuster expands digital delivery of vide
2336867 0114 KGOTVChannelSanF Blockbuster and Sonic Solutions Team for Int
============================================================================================================
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January 15, 2009 | Permalink | Comments (0)
12.29.08 From James Henderson
I
wanted to give you a heads up on the week’s comps for last
week.
Company Franchise
TNR
+11.1% -11.1%
NRR
-9.0% -15.9%
Retail
+45.5% +4.1%
All
comps for both company and franchise lost some ground on
Sunday.
More
information will follow on the normal Tuesday
communication.
I
should have more specific DMA results later this afternoon if you would like to
call me to discuss those.
James
December 29, 2008 | Permalink | Comments (0)
12.24 Memo-Radio Ads
To: All
Domestic Franchisees and Licensees
From: James Whatley - VP Global Franchise
& International Corporate Operations
Date: December 24, 2008
Subject: Radio Ads
Beginning
this week, Blockbuster is launching radio advertising designed to drive traffic
into the stores, highlight the great entertainment value Blockbuster offers and
create awareness for hot new DVD releases.
The radio ads, which will run throughout next year, will air on the top-rated radio stations in the top 40 markets on a weekly basis on Fridays and Saturdays, which is prime entertainment consideration time.
DVD titles supported with the start of this week’s radio spots include “Mamma Mia!,” “Mummy, Tomb of the Dragon Emperor” and “Burn After Reading.”
Blockbuster’s goal is to drive home the point that Blockbuster is America’s Best Entertainment Value.
December 24, 2008 | Permalink | Comments (0)
Daily Clips - December 23, 2008
Daily Clips are intended for internal use only. They may not be forwarded to individuals outside of Blockbuster without prior permission from the Corporate Communications Department.
Video Business, 12/22/2008
Internet holiday spending fell last week
Consumer electronics decline offsets videogame increase
By Danny King
U.S. online retail spending fell last week as a decline in demand for consumer electronics, DVDs and CDs more than offset an increase in videogame sales, ComScore said in a report yesterday. Overall holiday spending might trail year-earlier figures because of fewer days between Thanksgiving Day and Christmas.
Customers spent $12.8 billion for the 19 days ended Dec. 19, up 1% from $12.7 billion a year earlier but down from the 2% year-over-year increase for the two weeks ended Dec. 14, ComScore said in a statement. Overall holiday season retail spending fell 1% to $20 billion.
Although average daily spending since Thanksgiving rose 5% from a year earlier, overall spending is down because there are five fewer shopping days between Thanksgiving and Christmas, according to ComScore.
"The combination of the compressed holiday schedule and the challenging economic situation faced by many consumers means that retailers have their work cut out for them this season,” ComScore chairman Gian Fulgoni said in the statement.
Consumer electronics sales via the Internet fell 9% from a year earlier for the 19 days ended Dec. 19 after being even for the first two weeks of the month, signaling that consumers have cut spending on components since being lured by sub-$200 Blu-ray Disc players and cheaper flat-screen TV sets during the week following Thanksgiving. DVD and CD sales remained down about 24%, while videogame sales surged 17%, up from the 9% year-over-year increase for the previous week, ComScore said.
The ComScore study appears to echo two NPD Group reports released last week that said Internet spending on consumer electronics surged for the two weeks of the holiday season, while overall December spending is likely to fall.
Internet sales of consumer technology products for the two weeks ended Dec. 6 jumped 19% from a year earlier, largely on higher demand for liquid-crystal display TVs and digital cameras, NPD said.
Meanwhile, about four out of five people polled planned to spend less this month than in December 2007, reflecting the belief by 55% of those surveyed that their financial circumstances will worsen next year, NPD said in a separate report released last week.
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Motley Fool 12/22/2008
3 Winning Stocks for a
Challenging Year
By Rick
Aristotle Munarriz
I have been predicting general market trends for the year
ahead, but now let's dig into some actual stock
picks.
2009 is
definitely going to be an interesting year for investors. Even if the economy's
funk deepens -- as many expect -- equities are unlikely to bleed as badly as
they have in 2008. There is a lot of pessimism already baked into the stock
market's weighing machine.
This doesn't necessarily mean that stocks will bounce back in a major
way. However, now is a good time to begin exploring equities that have been
roughed up in 2008, yet have a good story to tell in 2009, even if the recession
grows.
I have a few to
share, just to get the ball rolling. Then I'll ask you to take
over.
1. TASER
International (Nasdaq: TASR)
It has been all downhill since
"don't Taze me, bro." The company's latest quarter was a stinker. Revenue fell and profits took
a precipitous tumble. Inventory levels rose sharply, and that's never a good
thing when you have a trendy security product to sell.
The stun-gun maker is also a litigation magnet, and that's always a
heavy burden even if the company has a good track record in the
courtroom.
So why should
anyone expect TASER to bounce back next year? It's about the product. Economic
slumps go hand in hand with increases in crime. Folks get more desperate when
mouths are harder to feed. Smith & Wesson's (Nasdaq: SWHC) stock got slammed after the company
reported earnings last week, but the
decline was because of a sharp drop in hunting rifle sales. Pistol sales
actually rose during the period.
TASER weaponry isn't cheap, but there are reasons why police officers
and lay consumers are drawn to the stun guns as a typically non-lethal
alternative to stocking up on guns.
2. Dice Holdings (NYSE: DHX)
It has been nothing but snake
eyes since Dice went public two summers ago at $13 a pop. Dice runs niche-specific job
sites like ClearanceJobs.com for folks with active security clearance,
eFinancialCareers.com in the financial services space, and its namesake Dice.com
that specializes in tech job listings.
The stock has tanked since the IPO, but
the company is still growing. It has beaten Wall Street
expectations in each of this year's first three quarters. Analysts see revenue
and earnings taking a dip in 2009, but I don't see it that way at
all.
Market-watching
firm Challenger, Gray & Christmas predicts that more than a million jobs
will be cut next year. Even companies that appear to be doing well are
tightening their belts and announcing layoffs.
This may not seem like a cheery scenario
for a company like Dice, but it's actually the perfect growth catalyst for
companies like Dice and larger players like Monster and Yahoo!'s (Nasdaq:
YHOO) HotJobs. The unemployed are
looking. The employed are nervously networking. It's a good time for
Dice.
3. Netflix
(Nasdaq: NFLX)
I have already made my case for
Netflix as a winner in a recession. Subscription-based
products are typically early cuts in the belt-tightening process, but Netflix is
different. Its unlimited, home-based DVD rental model is just the ticket to see
homebodies through the downturn.
Netflix offers an attractive value proposition, and that's before we
even consider the company's broadband streaming of 12,000 titles that it offers
at no additional cost to subscribers.
Companies that provide cheap cinematic
escapes like Netflix and Blockbuster (NYSE: BBI) should make out nicely during the
economic lull.
The
market apparently agrees. Unlike TASER and Dice, which have shed more than half
of their value in 2008, Netflix is that rare bird trading
higher.
| Dec. 31, 2007 |
Dec. 19, 2008 |
Change | |
| TASER | $14.39 | $4.99 | (65%) |
| Dice | $7.99 | $3.73 | (53%) |
| Netflix | $26.62 | $27.69 | 4% |
It's your turn now
There are
many ways to play the recession, of course. Food and health-care stocks are
typically seen as defensive plays. Some feel that a widening funk will lead to a
diminishing dollar, so foreign stocks and gold may be in order. Naturally the
most ardent bears will just short stocks, buy puts, or roll with bear-centric
exchange-traded funds.
What are you buying to brace yourself for 2009? I want to know. Post your thoughts in the comment box below and I'll come back in a few days to discuss your best ideas.
==========================================================================================================
New York Times 12/21/2008
VIDEO GAMES
Arts and Leisure Desk; SECTAR
The Zombies Look Better Every Year
By SETH SCHIESEL
THE video game industry has never been more reliable in producing high-quality mass entertainment for a variety of audiences with a variety of tastes. Three years into the current generation of game systems, developers are ceding nothing to other entertainment media in terms of high-end production values and overall attention to detail.
Gaming's exploding worldwide popularity has forced developers to become at once more humble and more ambitious. More humble in recognizing that gamers demand quality and will not be bamboozled into throwing away their money on an undercooked product. More ambitious in recognizing that the technical resources are now available to create true high-definition interactive entertainment and in recognizing that the mainstream game audience is now sophisticated enough to appreciate nuanced, involved storytelling.
That doesn't mean there is anything wrong with just wanting to shoot stuff sometimes. The great strength of the video game business these days is that it is catering to everyone, something I've seen both in the games and in the people who play them. Here then are some of the most interesting and revealing games, gaming moments and gaming trends of 2008.
BEST ZOMBIES: LEFT 4 DEAD It was a big year for the undead. I enjoyed strategically dismembering the spooky space zombies in Dead Space, but Valve, with Left 4 Dead, demonstrated why it is the premier developer of first-person shooters (sorry Id, sorry Bungie). The pacing is taut, and the game is built around the ludicrous fun of its multiplayer modes. There few extraneous design features, allowing the game to bask in the purity of the adrenaline rush it provides. (For Xbox 360 and PC.)
BEST EXPLANATION OF WHY NINTENDO HARDLY NEEDS BIG GAMES ANYMORE: THE WII The only constituency of gamer with a legitimate gripe for feeling a bit neglected this holiday season is the hard-core Nintendo fan: you know, the Zelda expert, the Mario savant. Those players are finally coming to realize that Nintendo does not need to fawn over them anymore because the rest of the planet, which has never even heard of Zelda, is still clamoring for the Wii. I've seen it all year. My middle-age downstairs neighbor asked me to help her find two copies of Wii Fit so she could send them to relatives in Puerto Rico. Over a rainy summer weekend on Long Island, an entire house full of highly paid finance professionals spent almost every waking moment in a rotating Wii bowling and tennis tournament. (I could make any number of jokes about the September crash but will refrain.) These kinds of people don't even consider themselves gamers, but they are why Nintendo can get away with neglecting its core fans. For now.
BEST EMBRACE OF DEMOCRACY, FLAWED AS IT IS: EVE ONLINE This year CCP of Iceland (another potential finance joke sidestepped) invited the more than 200,000 players of Eve Online to vote for nine representatives from around the world to convey their concerns and suggestions about the game to the company. That alone was innovative. Then the company flew them to Iceland to sit down for a few days with the game's developers. The company has committed to repeating the process about every six months, which makes this an idea that ought to spread beyond the game world. Maybe Microsoft should allow Windows users to vote for an officially recognized gripe committee. Maybe the airlines could have their chief executives sit down with an elected panel of frequent flyers twice a year. Hey, who says games can't make the world a better place?
BEST DISAPPOINTMENT: SPORE If Electronic Arts has learned anything from its experience with Spore, it ought to be that a software company should just let its games do the talking, rather than relentlessly hyping a game for years before its release only to deliver a one-note electronic toy in the end. Spore would not have fizzled so quickly if expectations had not been so ludicrously inflated to begin with. Perhaps more important, it showed that maybe even a game god like Will Wright, the game's creator, can stand to be reminded of the basics once in a while. Spore was great at letting the player create something from nothing. But in the end it just wasn't that interesting to play with. Making cool stuff is a great part of video games, but the play, more than in any other media, really is the thing. (For Mac and PC.)
BEST VINDICATION: FABLE II Like Mr. Wright, the game designer Peter Molyneux also likes to talk. And he is also quite good at it. His games, however, have never quite been as golden as his tongue. Until now. With Fable II, his enchanting Enlightenment-era fantasy role-playing adventure, Mr. Molyneux finally achieved his goal of allowing players to feel as if they were inhabiting a living world. (For Xbox 360.)
GAME OF THE YEAR: GRAND THEFT AUTO IV G.T.A. IV came out in April, and for the rest of the year I kept waiting for some other new game to captivate and refuse to release me the way this masterpiece from Rockstar did. I'm still waiting. Beyond its formidable craft, apart from its well-balanced combat and driving mechanics, what impresses most about G.T.A. IV is its writing. It is one of the few games that even try to take on the real world in any adult way. (Of course, the game's Liberty City setting is a parody of modern New York.) Penetrating through all the game's gangster trappings is a hunger to engage with the idiocies, the contradictions and even some of the good things in modern America. After all, someone has to. (For Xbox 360, Playstation 3 and PC.)
============================================================================================================
TWICE, 12/22/2008
Court OKs $1.1B Circuit City Loan
By Alan Wolf
A federal bankruptcy court here has approved $1.1 billion in financing for Circuit City.
The revolving credit facility will allow the CE chain to pay vendors and other suppliers for goods and services received after it filed for Chapter 11 bankruptcy protection last month.
Circuit City will also use a portion of the new debtor-in-possession facility to pay off debt from its previous $1.3 billion asset-based credit line. Both loans were packaged by a lender group that includes Bank of America, Wells Fargo and GE Capital.
Separately, the court has allowed the retailer to break severance agreements with 40 former executives including ex-chairman/CEO Phil Schoonover, and to reject a contract with the MGM Grand Hotel & Casino in Las Vegas for room reservations during next month’s International CES. The company was also authorized to break two service agreements with YouTube, including one for a Circuit City micro site it hosted last fall for football fans.
============================================================================================================
Home Media Magazine 12/22/2008
British Video Association Says Euro BD Sales are Strong
By Chris Tribbey
Blu-ray Disc and player sales in Europe are surprisingly strong, despite worldwide financial gloom, according to the British Video Association (BVA) and research firm Futuresource.
British consumers bought more than 460,000 Blu-rays in November, an increase of 165% from the previous month, according to the BVA. The Dark Knight sold more than 510,000 total units, with Blu-ray accounting for 21% of all discs sold. In total more than 6.5 million Blu-ray discs — including those used for games — have been sold in Europe in 2008, a year-over-year growth of 320%.
“Once people see the benefits of Blu-ray for themselves, they soon realize the difference it can make,” said Jim Bottoms, managing director of corporate development for Futuresource. “We fully expect Blu-ray to keep on bucking the current economic trend and continue its rapid growth over the next few months and beyond, stimulated by falling prices and even more bundling deals with large-screen TVs.”
Overall sales of players are expected to triple in 2009, according to Futuresource, with 2.5 million standalone units projected.
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December 23, 2008 | Permalink | Comments (0)
Daily Clips 12.19
Daily Clips are intended for internal use only. They may not be forwarded to individuals outside of Blockbuster without prior permission from the Corporate Communications Department.
KTRH-AM (ABC Radio) 740-AM 12/15/2008
Houston, Texas
LANA HUGHES, co-anchor:
Saint Nick doesn't have to be saintly for America to love him, but it helps.
(Excerpt from "The Santa Clause")
HUGHES: In a new survey from Blockbuster, movie lovers chose Tim Allen's portrayal in "The Santa Clause" at their favorite nice onscreen Santa. They chose Billy Bob Thornton's Anti-Claus in "Bad Santa" as their favorite version of a less jolly old elf.
ROGER HUDSON, co-anchor:
Now, director of film production for Blockbuster, Keith Leopard, joining us live to talk a little bit about the survey and what movies people are renting this holiday season.
Good morning, Keith.
Mr. KEITH LEOPARD (Director of Film Product, Blockbuster): Good morning. How are you?
HUDSON: I'm doing OK. You know, Lana asked me just out of the box what was my favorite Santa. So that's a hard one to kind of bring ourselves to make a decision. What were the top three or four?
Mr. LEOPARD: Well, on the nice Santas, it was--Tim Allen was the number one. Thirty-five percent thought he was probably the best Santa, their favorite, followed pretty closely by "Miracle on 34th Street," which I kind of grew up knowing him as Santa, Edmund Gwenn, the jolly old guy from Macy's. And then this was a little interesting one, Ed Asner, who--Lou Grant, actually--from the movie "Elf" came in number three.
HUGHES: Well, sometimes the Anti-Clauses are as fun as the sweet, old Saint Nick, so how about that list?
Mr. LEOPARD: Well, we always like to find out the yin and the yang to everything, so we wanted to find out who's your favorite naughty Santa, and by far, you know, it's Billy Bob Thornton from "Bad Santa," which is a great movie, not for the kiddies, definitely for the adults out there.
And then Jim Carrey was right behind him from "The Grinch." He--I think anybody that's ever seen the animated Grinch would agree that Jim Carrey in the live performance pretty much nailed what you would think the Grinch to be. And then number three was Boris Karloff, who voiced the Grinch in the classic cartoon.
HUDSON: Nothing better than Boris Karloff in "The Grinch," nothing better. So, which is more popular, the happy, good, positive Santas or the bad Santas? Which do we like the most?
Mr. LEOPARD: Well, it's actually a little bit of both. When people are coming in the stores, it's always, 'Oh, let's get "It's a Wonderful Life." Let's get "Santa Clause."' And then they look around. Nobody's watching. Then they grab "Bad Santa," as well.
HUGHES: How about the voiceovers? There are a lot of great Santa voiceovers that really stick with us through the years, don't they?
Mr. LEOPARD: Yeah, it's--Boris Karloff is the one that really resonates with people. But also what we find is in "A Christmas Story," the narration that goes along with that movie is one of the high points of the film.
HUGHES: Absolutely--and Tom Hanks, "Polar Express." There are so many great ones.
Mr. LEOPARD: Yeah. This time of year, we put them actually in a special section of the stores, so they're a lot easier to find, because everybody's looking for something after shopping all day.
HUDSON: I actually talked to a friend who was enjoying the rotten ones, too, and I mean the really bad movies. There was one, I think, where Dudley Moore plays an elf. And there's just--there's a whole series of things that are bad. Are you finding people like those, too?
Mr. LEOPARD: They tend to--around this time of year, they tend to stick with the classics, although we do rent a few of the--kind of the horror films from the '80s, the "Silent Night, Deadly Night" series, "Christmas Evil." So there's a little bit of--a little bit of that. But in general, it's always "It's a Wonderful Life," "A Christmas Story," "Santa Clause." Especially I would imagine this time of year, with the economy, just everybody wants a little more light-hearted.
HUGHES: Absolutely. It just fits the bill, doesn't it?
Mr. LEOPARD: Yeah.
HUGHES: Thank you so much.
Director of film product for Blockbuster there, Keith Leopard.
============================================================================================================
USA TODAY 12/18/2008
New products that made tech fans celebrate in 2008
By Edward C. Baig,
There was no landslide winner as the most important tech product of 2008. But amidst the most challenging economic storm in decades, you could make a case for viable candidates.
Smartphones, especially Apple's iPhone 3G, got smarter, buoyed by the brand-new iTunes App Store.
Portable and inexpensive laptops, dubbed netbooks, got smaller, cheaper and more ubiquitous.
There were innovative, if imperfect, new Web browsers from Microsoft (Internet Explorer 8), Mozilla (Firefox) and, most notably, Google (Chrome).
And Netflix, the company that built a business shipping DVDs by mail, began letting you instantly stream movies on a whole bunch of hardware components — from a clever $100 box from Roku to certain Blu-ray players.
Blu-ray itself was something of a story, if only because 2008 began with Hollywood choosing it as the preferred format for next-generation high-definition DVDs. For all the predictions about digital distribution of entertainment winning out long term — Netflix being one example — physical media will stick around for a while. By the end of the year, Blu-ray players were heavily discounted. I found one for less than $200 on Black Friday and would like to see prices drop even further.
This is the time of year when pundits reflect on the previous 12 months. I've been poring through a year's worth of products I tested for my Personal Technology columns. I'm also paying homage, if not quite breaking into a sweat, over some of the influential products I didn't actually review. For example, the Wii Fit exercise board from Nintendo helped the company continue to bulk up sales for its widely popular Wii video game system. I've also been gazing into my crystal ball. At least two tech stories are likely to dominate headlines in 2009.
On Feb. 17, television as we've known it since Howdy Doody will be altered forever. That's when broadcasters culminate the transition to digital TV by terminating their analog signals. The analog-to-digital converter boxes that will allow people to watch digital TV on older sets have sold surprisingly well, says NPD analyst Stephen Baker. "Everybody thought that people would just upgrade their televisions, but instead everybody went out and bought a box."
Meanwhile, Microsoft is widely expected to unveil the next major version of Windows next year. Suffice to say, it's way premature to weigh in on the viability of Windows 7 and how it might compare with Windows Vista. But industry guru Tim Bajarin of Creative Strategies says it could be the technology that brings the tech world out of its economic doldrums. "Most major releases that Microsoft has brought out have spurred significant growth in the PC markets in the two years following," Bajarin says. Of course, Vista was an exception.
Here's a look at some of 2008's most interesting products, keeping in mind that saying a product is "important" doesn't mean it's unblemished.
Smartphones
July's iPhone 3G launch was more understated than the mind-boggling debut of the original iPhone. How could it not be? The $199 or $299 3G version was faster, cheaper (at least on the hardware side) and friendlier to business. Of course, with more than 10,000 applications, it is the iTunes App Store that most elevates the iPhone into an important new computing platform.
Drawbacks remain. The iPhone battery still wimps out way too fast for my taste, and AT&T's 3G network is lacking in some areas. There's no cut-and-paste, no video camera, nor turn-by-turn audio driving directions to go along with the iPhone's GPS location capabilities.
Still, the iPhone and the App Store have set a high bar for excellence that other companies are trying to live up to.
I was more positive than some on the $200 BlackBerry Storm from Verizon and Research In Motion, the first BlackBerry without a physical keyboard. But I'm sticking with the iPhone. Storm's most-hyped feature, the "clickable" tactile touch-screen, isn't nearly as user friendly as the iPhone's multitouch keyboard. You have to press down fairly hard, and the virtual keyboard doesn't adapt to what you're doing quite like the iPhone does.
Storm also lacks Wi-Fi, an omission that penalizes users who travel outside Verizon's robust cellphone data network.
But Storm boasts a lot of positives compared with the iPhone, starting with a superior battery. It has a lovely screen and a better camera, capable of shooting video. And it has other features Apple left out, including cut-and-paste, expandable memory and a removable battery.
RIM didn't abandon BlackBerry loyalists who want to stick with a physical keyboard. The BlackBerry Bold from AT&T is a fine new alternative.
Those expecting iPhone-like glitter and glitz were bound to be disappointed by the first Google phone, the $179 T-Mobile G1, made by HTC. It won't win any beauty contests. But the device is based on the slick and promising open-source Google Android mobile platform. And it has a slide-out physical keyboard to complement a touch interface. Expect to see other Android devices in the coming months. The "desktop" screen features a large clock and a few simple icons. Slide your finger to the left, and a Google search bar appears. If you run out of real estate for icons and such, you can find space by sliding your fingers in either direction.
Expect more smartphone innovation in 2009. Worth watching is the new mobile operating system that comes out of Palm, the onetime smartphone leader that has fallen on tough times.
One other refreshingly simple gadget is worth mentioning: the Peek. It looks like a BlackBerry but is not a phone. It's all about consumer e-mail. Cost is $100, plus a $20-a-month fee, with no required contract.
Netbooks
Purchasing a laptop has always come down to a balancing act over size, weight, price, features and ease of use. The streamlined machines known as netbooks won't break your back or your budget. Models are available from Acer, Asus, Dell, Hewlett-Packard and others.
Still, you have to give up something to get something, as I saw testing the Asus Eee PC 900 and HP Mini-Note 2133. Models can be found for under $400. The Asus, for example, boasts a petite form factor and relatively generous 8.9-inch screen. But it had limited storage and was challenging to type on. I liked the keyboard a lot better on the Mini-Note. But the battery was no great shakes. I had to squint to see the screen, and the placement of the mouse buttons drove me nuts.
Netbook prices continue to fall. RadioShack is selling the 2.2-pound Acer Aspire One for just $99, provided you commit to a two-year, $60-a-month contract with AT&T for wireless 3G data access. The price is $500 otherwise. Bajarin thinks moving to this cellphone-type subscriber model could shake up the industry. But "We think that $60-per-month price is way too high for consumers," he says.
This category should continue to evolve in 2009. Today's netbooks run on the Linux or XP platforms. Figure Microsoft is grappling with how to get into the netbook game with Windows 7. Another question: Will Apple unleash a netbook?
Browser upmanship
Mozilla unveiled the smart location, or Awesome Bar, on Firefox 3. Start typing and the browser serves up a drop-down list of Web destinations based on sites you've already visited, bookmarked or tagged.
In Internet Explorer 8, Microsoft added clickable buttons, or accelerators, that may appear when you highlight text on a page. You might select an address to map it or highlight a foreign phrase to translate it. Microsoft also added a Web slice feature to quickly monitor information on sites you frequently check.
Google made the biggest splash by introducing a spartan and fast browser called Chrome, which combines the address bar and search box. Chrome is still a little buggy, and its market share is puny compared with IE, Firefox and Apple's Safari. But keep an eye on Chrome long term as Google competes not only in the more traditional browser space but perhaps more broadly as an online platform that goes head-to-head against Windows.
Movies now
As quick as Netflix is at shipping DVD rentals by mail, sometimes it's just not quick enough. The Netflix Player by Roku solved that problem to a point — only a fraction of the Netflix library was actually available for instant streaming. Still, the $99 Roku box provided subscribers with the ability to watch movies on TV without having to wait.
Netflix has since expanded the service to certain LG and Samsung Blu-ray players, along with the Xbox 360 and TiVo HD DVR. With just 12,000 titles — only a few in high definition — you still can't watch most box office bonanzas instantly.
It's worth seeing how the new Blockbuster OnDemand service does. The struggling retailer recently teamed with 2Wire on a MediaPoint Digital Media Player that stores DVD-quality movies for instant viewing.
The MediaPoint player is free if you rent 25 movies in advance for $99. Additional rentals cost $1.99 to $3.99. No subscription required. Blockbuster says new movies are typically available within 30 days of DVD release. But the movie library is even smaller than Netflix's.
I was intrigued by a couple of other offerings that promised a degree of movie-watching freedom. RealDVD from RealNetworks lets you copy, organize and play DVD movies on a laptop so you can leave the discs at home. Real CEO Rob Glaser said it was all legit. But RealDVD is now on hiatus because of legal action taken by studios against the company.
Hollywood has apparently given its blessing to Qflix technology from Sonic Solutions. It lets you download and burn movies so you can play them on any player. You'll need a Qflix burner from Dell, Plextor or Pioneer (near $100), special copy-protected discs (five-packs cost $5.99 to $10.99), and you must fetch films from CinemaNow, which Sonic is acquiring. Burn-to-DVD movies are $8.99 to $14.99, but fewer than 70 are available.
Microsoft goes into space, photography
It may seem to take light-years to boot up a PC with Windows Vista. But Microsoft sure can rocket you around outer space with its breathtaking and free WorldWide Telescope Web application. It's just one of the intriguing research projects the company launched this year.
WorldWide Telescope is a virtual space observatory that seamlessly weaves together 12 terabytes of data and stunning imagery from the world's finest telescopes. The immersive odyssey helps you grasp the cosmos' scale and vastness, on your own or through guided tours. You'll need a robust PC to explore the celestial outposts. Be ready to get lost in space: The interface is a little daunting.
Another project born out of Microsoft's labs is Photosynth, which aims to take panoramic stitching to a whole new level. The basic idea is to automatically stitch together a collection of snapshots you took, say, at Grant Park after Barack Obama's victory. The software transforms them into 360-degree, three-dimensional "synths" that are meant to place you at the core of a reconstructed scene. You navigate somewhat chaotically with your mouse and keyboard.
Photosynth forces you to think differently about the way you shoot pictures. Microsoft has just released a new viewer that takes advantage of the company's Silverlight video technology. Microsoft also says it's busily squashing Photosynth bugs — and presumably in the case of the WorldWide Telescope, space aliens.
Not every one of the year's most interesting products are fully polished or guaranteed to shine long term. But the results of 2008 in techdom suggest that even in turbulent times innovation is alive. Tech companies must muster up even more innovation in 2009 to generate sales against powerful economic headwinds.
============================================================================================================
Video Business, 12/17/2008
Circle K’s Canadian sister chain gets Movie Spot kiosks
Signifi installs five Movie Spot machines at Ontario's Mac's
By Danny King
Mac’s Convenience Stores, the Canadian convenience-store chain whose parent company also owns Circle K, installed five Movie Spot movie-rental kiosks from self-service kiosk maker Signifi Solutions, the companies said in a statement today.
Mac’s now has Movie Spot kiosks at three locations in and around Toronto, one in Oshawa and one in Fergus. Movie Spot, which began installing kiosks in stores two months ago, has 10 other machines at Rabba Fine Foods, Sobeys and Zellers stores and expects to have as many as 300 across Canada by the end of next year.
Signifi, whose products also include photography and CD kiosks, is testing a North American movie-rental kiosk market expected to grow as video-rental store chains such as Blockbuster and Movie Gallery contract. With more than 10,000 machines in the U.S., Redbox is North America’s largest kiosk operator. No. 2 TNR/Moviecube started installing machines at Loblaw supermarkets in Canada this year.
Movie Spot kiosks carry about 1,000 DVDs covering about 300 titles and charge C$1.99 per nightly rental. The pilot program with Mac’s also allows customers to rent movies on Movie Spot’s Web site and pick them up at the kiosks within four hours.
Owned by Quebec-based Alimentation Couche-Tard, Mac’s is Ontario’s largest convenience-store chain and has more than 2,000 stores in Canada. Couche-Tard also owns Circle K, which has 2,100 stores in the U.S.
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Home Media Magazine 12/17/2008
Suit Alleges Xbox 360 Damages Discs When Moved
By Chris Tribbey
First it was the “red ring of death.” Now it’s damaged discs.
Microsoft’s Xbox 360 is coming under legal fire again, this time because of accusations that the gaming system scratches discs when the system is moved while the power is on. The suit seeks class action status.
While it may seem like common sense — don’t move the system while it’s operating — a suit filed in Seattle claims Microsoft knew about the problem before the Xbox 360’s launch in 2005, and its advertising of the system as being able to stand horizontally or vertically causes users to handle the system without knowing the consequences.
“Microsoft discovered this scratch-inducing design defect prior to launching the Xbox 360, but refused and continue to refuse to remedy the problem,” the lawsuit reads. The suit includes testimony from a Microsoft program manager, Hiroo Umeno, which shows that Microsoft considered — and rejected — three possible fixes to the problem before the system was made available to consumers.
Microsoft includes a warning sticker on the 360’s disc tray that warns users to not move the console while a disc is inside. However, the suit claims that does not “adequately warn of the product defect.”
A Microsoft spokesman told the Seattle Tech Report Dec. 15 that “too much movement of any game console, not just the Xbox 360, can cause scratches on a disc. That’s why we put a warning on the face of the tray, which the user has to physically remove before the initial use of the system.”
A widespread failure rate of Xbox 360s due to overheating — known as the red ring of death, due to the three red lights that appear on the front of the console — resulted in a class action lawsuit in California filed in October. Microsoft has acknowledged the problem, has extended the system’s warranty to three years, and allows for free repair via the mail for users experiencing the problem.
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Reuters 12/18/2008
Young people watch less TV than older folks - study
LOS ANGELES, Dec 18 (Reuters Life!) - Young Americans just aren't watching TV like they used to.
It seems the older you get, the more you watch, according to a report due out on Thursday from Deloitte indicating that "millennials," the generation of ages 14-25, watch just 10.5 hours of TV a week.
That compares with 15.1 hours for those belonging to Generation X (ages 26-42), 19.2 hours for baby boomers (43-61) and 21.5 hours for matures (62-75).
But millennials are not shunning broadcast and cable in favor of watching DVDs on their TV screens. They spend less time watching DVDs of movies and TV shows on television sets, 4.8 hours a week, than do Gen Xers.
They are, though, spending more time watching DVDs on a computer -- 1.9 hours a week -- than any other age group.
But while millennials are watching the least TV, they are spending the most time with media in general, making that up with video games, music and the Internet.
TV remains the most influential advertising medium, according to the Deloitte study, titled "The State of the Media Democracy." It is followed by magazines, the Internet, newspapers, radio and billboards.
============================================================================================================Variety 12/17/2008
Take-Two signs Rockstar deal
By BEN FRITZ
'Grand Theft Auto IV' has sold more than 10 million units, but the vidgame biz has slowed in line with the rest of the economy.
The creators of "Grand Theft Auto" are sticking with publisher Take-Two in an unprecedented deal that includes a cut of the profits and full ownership of future games.
Ending months of speculation about whether top talent at Rockstar Games, the Take-Two label that makes the ultra-successful "GTA" and other franchises, would remain when their contract expires in February, the publisher has signed them to a new three-year contract through 2012.
Deal includes Rockstar co-founders Sam and Dan Houser and Leslie Benzes, president of the Scotland development studio that makes most "GTA" games.
Though Wall Street welcomed the news, Take-Two stock plunged 19% in after-hours trading Wednesday as the publisher unveiled lower-than-expected guidance for 2009 amid the weakening economy.
Compensation under the new contract comes primarily through profit sharing for the Rockstar label, which contributes nearly half of Take-Two's revenue. Though videogame creators typically receive royalties based on sales of specific titles they make, Rockstar talent are believed to be the first to get a major stake in overall profits.
Pact also includes an equity grant of Take-Two stock that will vest over three years.
Most significant part of the deal, however, is that the Housers, Benzies and other Rockstar team members will establish an independent company to develop new videogames that they will fully own. Take-Two has agreed to fund development in exchange for exclusive distribution rights.
Intellectual property ownership by creators is rare in the videogame industry and unprecedented for those who are employees of major publishers.
In an interview, Take-Two chairman Strauss Zelnick said the Housers and Benzies will spend most of their time working at Rockstar and continue to create games for that label, along with sequels to existing franchises, while also working on new games for their independent company.
"This is a team that has been responsible for the top-selling IP in the business and has a uniquely successful creative culture," Zelnick told Daily Variety. "It's terribly important for us to be in business together with them, and we're proud to align the interest of our colleagues with our company and stockholders."
April release "Grand Theft Auto IV" has already sold more than 10 million units worldwide. In addition, Take-Two has high hopes for a downloadable expansion pack to the game that will be released in February and a spinoff for the Nintendo DS coming out in March.
However, Rockstar games have been selling modestly so far this fall as the videogame business has slowed down along with the economy.
On a conference call with analysts, Take-Two CEO Ben Feder said "GTA IV" has performed only "OK" leading up to the holidays. He characterized initial sales for Rockstar's car racing game "Midnight Club: Los Angeles," released in October, as "slower than expected."
Take-Two's overall performance for the quarter ended Oct. 31 was in line with previous guidance, as the publisher lost $15 million on $323.4 million in revenue. That's up from a $7.1 million loss on $292.6 million in revenue last year and was driven primarily by "GTA IV," "NBA 2K9" and the company's successful "Carnival Games" family franchise.
However, Wall Street was disappointed by Take-Two's conservative guidance for the current quarter and the fiscal year ending next October. Though the company always suffers in the year following a major "Grand Theft Auto" release, investors didn't expect revenue guidance to dip from more than $1.5 billion to between $1.1 billion and $1.25 billion, as Take-Two now says it will due to the ongoing recession, which has already impacted competitors including Electronic Arts.
"It's important to remember that consumers of interactive entertainment are as affected by the economy as other shoppers," Zelnick noted. "We've taken a hard look at our forecast for the next 12 months, and we've significantly reduced our expectations."
Take-Two stock closed up a fraction at $12.07 Wednesday before earnings and the Rockstar deal were announced.
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Video Business, 12/17/2008
Take-Two 4Q loss doubles on higher costs
GTA publisher expects 1Q sales decline
By Danny King
Take-Two Interactive Software said today that its fiscal fourth-quarter loss doubled after selling, marketing, research and development expenses rose faster than sales. Shares of the company, which was expected to have a profit, fell after hours.
The videogame publisher’s net loss for the quarter ended Oct. 31 widened to $15 million, or 20¢ a share, from $7.06 million, or 10¢, a year earlier, as sales increased 11% to $323.4 million, Take-Two said in a statement. The producer of the record-setting Grand Theft Auto games franchise was expected by financial analysts to earn 5¢ a share on $325.8 million in sales.
Take-Two spent 19% of its revenue on sales, marketing, research and development, up from 15% a year earlier, as it prepared to launch such titles as Don King Boxing and Borderlands as well as more GTA installments. The company also said fiscal first-quarter sales would decline between 6% and 27% from a year earlier.
“While our initial guidance provided today is a prudent response to the difficult current and possible future business conditions, we continue to maintain our strategy of developing a select portfolio of AAA titles,” Take-Two CEO Ben Feder said in the statement.
Take-Two shares fell about 18% in extended trading as of about 5 p.m. EST today.
The publisher, whose recent titles include Midnight Club: Los Angeles and NBA 2K9, also announced an agreement with the creative team at its Rockstar Games division, which produces GTA. The deal will extend through January 2012. Take-Two’s GTA IV, which set one-day and first-week all-time records for videogames after its April 29 release, moved more than 10 million copies in its first four months and helped fuel a U.S. videogame industry in which sales through October jumped 25% from a year earlier to $13.1 billion, according to NPD Group.
Take-Two earlier this year was the subject of an acquisition bid from larger competitor Electronic Arts, which first offered about $2 billion for the company in February. EA, which was overtaken as the world’s largest videogames publisher in July when Vivendi’s games unit completed its $9.85 billion acquisition of Activision, allowed its bid to expire in August and ended acquisition talks the following month.
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Video Business, 12/17/2008
Warner draws Viz deal
Studio will distribute new, catalog anime titles starting in April
By Susanne Ault
Warner Home Video has signed on as the exclusive distributor for anime specialist Viz Media.
Starting April 1, 2009, Warner will service to retailers new and catalog Viz DVD titles spanning such popular franchises as Naruto, Bleach, Death Note, Inuyasha and Pokémon. Warner’s initial Viz releases on April 7 will be Naruto Uncut Box Set 13, Naruto Uncut Box Set 13 Special Edition and Hunter X Hunter Set Vol. 2.
Warner hopes Viz business will represent another key thread to its wide range of distributed brands, currently including BBC, National Geographic, Peanuts, Dr. Seuss, NFL, NBA and NHL. Viz anime will join Warner’s own deep animation stable holding such franchises as Tom and Jerry, Scooby-Doo, Batman and Superman.
“The association between Warner Home Video and Viz Media demonstrates our continued commitment to the growing sector of anime,” said Jeff Brown, Warner executive VP and general manager of TV, family and animation. “Adding to our previous success with The Animatrix and Appleseed: Ex Machina, we are looking forward to a successful relationship with Viz Media, one of the top players in the anime genre and children’s animation.”
Viz president and CEO Hidemi Fukuhara added, “We look forward to joining forces with Warner Home Video and are confident that in working with their strength in sales and distribution, we will continue to grow the anime category even more effectively than we have over the last several years.”
Simon & Schuster previously distributed Viz titles.
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