VERIZON AND REDBOX TEAM UP FOR STREAMING SERVICE

On Wednesday we reported on a story that suggested Verizon may be planning to challenge Netflix by launching its own video streaming service. Now, it appears the communications giant is secretly working with RedBox, the popular $1.00 video rental kiosk company, on a streaming service that could launch next year. According to TechCrunch, the plan is currently called “Project Zoetrope” and it will allow users to subscribe, download and stream movies and television shows across a variety of platforms including Roku, web browsers, Xbox, Google TV, Android and iOS.

Like competing services such as Vudu, both HD and SD resolutions will be available for rental. TechCrunch said pricing will be based on a monthly credit allotment. A user, for example, might buy 10 credits for $9.95 per month, which would allow him or her to stream a certain number of shows or movies. Apple, Amazon, Google, Netflix, Vudu and others are already members of the crowded digital movie rental space, so Verizon and RedBox will certainly face stiff competition if they’re looking to enter this market.

VERIZON TAKING ON NETFLIX

According to Reuters, Verizon is getting ready to enter the streaming media market. Reports are that the company is in talks with programming partners to provide content for a Netflix-like video service that it could offer to customers not currently covered by its high-speed FiOS network. Obviously, details are scant, and there's no telling when it might actually launch, but you can bet its competitors will be watching closely

RUMOR: APPLE TELEVISION COMING IN 3 SIZES

Citing sources in Japan, Australia's SmartHouse reported this week that the new Apple television will come in an entry-level size of 32 inches and a high-end size if 55 inches. It did not indicate exactly what screen size the third model would feature, falling somewhere between the low end with 32 inches and maximum size of 55 inches.

The report said it's a "major Japanese company" that's involved in manufacturing Apple's rumored television set. Echoing previous claims, the report said that the Apple television will feature Siri integration, allowing users to control the TV set with their voice.

Powering the rumored television will be a new processor expected to debut in Apple's third-generation iPad, which the publication said will arrive "midway through 2012." Presumably that processor will be an "A6" custom-built ARM-based CPU.

Apple's anticipated high-end 55-inch model is expected to compete with "smart TVs" from established television makers like Samsung and LG. Those companies' next-generation TV sets are expected to have new features like faster processors, a "combination of OLED display," and "Super HD" from LG, the report said.

Reports have suggested that Apple's anticipated television set could arrive as early as mid 2012, while others have seen Apple announcing it in late 2012 for an early 2013 sale date.

NETFLIX BRINGING ARRESTED DEVELOPMENT BACK AS AN EXCLUSIVE SERIES

In a serious content play, Netflix has announced that it is bringing the wildly popular show Arrested Development back exclusively on its platform.

The exclusivity is the key here, as it shows that Netflix is serious about putting its distribution power into promoting original content, rather than just a catalogue of previously aired content and films. Ted Sarandos, Netflix Chief Content Officer said "Arrested Development is one of the finest American comedies in TV history and its return through Netflix is a perfect example of how we are working closely with studios and networks to provide consumers with entertainment they love."

Cancellation of the show, which first aired in 2003, caused an outcry and became a bit of a touchy subject for Fox. Even after winning an Emmy award, the show aired its last episode on February 10th, 2006. The series has been a popular DVD purchase and streaming option since its cancellation.

SONY BUILDING A DIFFERENT KIND OF TV, JUST LIKE APPLE SAYS SONY CEO

All eyes have been on Apple to reinvent the television set, but Sony CEO Howard Stringer recently confirmed that Sony, too, is working on re-imagining the TV. “There’s a tremendous amount of R&D going into a different kind of TV set,” Stringer said during a breakfast hosted recently by The Wall Street Journal. “We can’t continue selling TV sets [as we currently do]. Every TV set we all make loses money.” Stringer said that he has “no doubt” that Steve Jobs had intentions of designing a brand-new kind of television but said that “it will take a long time to transition to a new form of television.”

It has been widely reported that Apple will use its Siri voice control engine on its TV, but Stringer wasn’t specific on exactly how Sony would change the entertainment staple in living rooms around the world. Stringer explained to The Wall Street Journal that he’s ready to take on whatever Apple will offer with a “four screen” approach that includes mobile devices such as tablets and phones, as well as computers and televisions, but connected TVs are hardly unique. ”I spent the last five years building a platform so I can compete with Steve Jobs,” Stringer boasted. “It’s finished, and it’s launching now.”

SONY TO SPLIT TV BUSINESS TO HELP DRIVE PROFITABILITY

Sony announced on Monday that it will split its television business into three different branches in an effort to reverse a course that has the arm headed to its eighth consecutive annual loss. The three new branches include LCD TVs, next generation TVs and outsourced televisions, Reuters said on Monday, and the changes will go into effect on Tuesday, November 1st. “By dividing into three divisions, we will make clearer the misson and responsibilities of these,” a Sony spokesperson said

NETFLIX STRIKES DEAL WITH DREAMWORKS

It looks like those rumors of a streaming deal between Netflix and Dreamworks Animation were as good as advertised. Details are still fuzzy at this point, but the New York Times is reporting that the two parties have reached an agreement to stream Dreamworks' movies and TV projects, as part of a deal worth an estimated $30 million. Under the contract, which replaces a similar pay TV pact between Dreamworks and HBO, Netflix will begin offering exclusive access to the studio's new films in 2013, with Antz, Kung Fu Panda and other titles from its library slated to become available for streaming sometime thereafter.

The company won't be confined to selling digital copies of Dreamworks' movies within a specific period, either, drawing a major distinction between itself and HBO, which requires studio partners to halt digital sales outside of an exclusive window. HBO probably isn't too thrilled to see Netflix strike what Dreamworks chief exec Jeffrey Katzenberg called a "game-changing deal."

RUMOR: DISH NETWORK LAUNCHING BLOCKBUSTER STREAMING SERVICE

Dish Network already has its DishOnline streaming service for its own paying customers, but it looks like it's now set to take direct aim at Netflix with a standalone subscription service that will be open to everyone. According to Bloomberg, that will operate under the company's recently acquired Blockbuster brand and, in what's surely a bitter pill for Netflix to swallow, it's said to include titles from Starz (which also handles movies from Disney and Sony). As you'll recall from yesterday, Starz announced that it will be pulling all of its titles from Netflix in February of next year after it failed to reach an agreement with the company. Details on the service otherwise remain a bit light -- including any word of a possible subscription price -- although Bloombergsays it "may" also include on-demand Blockbuster movies that Dish customers will be able to watch on their TVs.

RUMOR: APPLE LAUNCHING A TELEVISION IN 2012

Apple is almost certainly working on a digital television based on its iOS operating system, according to multiple sources in Silicon Valley.

An Apple-based television makes sense in light of Apple’s continued expansion out of the computer industry into the larger consumer electronics market. But is it real?

Multiple reports, as well as sources interviewed by VentureBeat, support the rumor, which is widespread among the gadget industry.

• Piper Jaffray analyst Gene Munster, a longtime Apple analyst, predicts that Apple will produce a television in late 2012 or early 2013. In an interview with VentureBeat, Munster cited multiple sources, including component suppliers as well as an internal Apple source, to back up his theory. Munster predicts this will be an actual TV, not just a set-top box, and most likely running a version of iOS. (Note: Munster made a similar claim in 2009, except then he said that Apple would have a TV by 2011. He now says “I think the probability is almost zero that it will be this year.”)
• Venture capitalist Stewart Alsop, of Alsop Louie ventures, lent credence to the “iTelevision” theory in an interview with VentureBeat. Alsop sits on the boards of TiVo and Sonos, follows the hardware industry closely, and says he has heard from multiple sources throughout Silicon Valley that the Apple television project is underway.
• The Wall Street Journal mentioned that Apple is “working on new technology to deliver video to televisions, and has been discussing whether to try to launch a subscription TV service,” according to “sources familiar with the matter.” That’s typically code for an inside source.
• And Cult of Mac notes that the time may be ripe for Apple to make a television, as high-end TVs have started to dip below the $1,000 price threshold.
• Even former Apple CEO Steve Jobs turned the wheels of the rumor mill in 2010, saying that it made sense for Apple to integrate its technology into television sets.

Apple has been testing the waters with its AppleTV, a set-top box that provides access to movies and TV from iTunes as well as other online video content. The company has a number of partnerships with movie studios and television networks, giving it an impressive content library. And its lightweight iOS operating system seems ideally suited for consumer devices (the OS is already under the hood in AppleTV).

Alsop figures the only thing holding Apple back is the cost of LCD screens, which has been a limiting factor in all of Apple’s iOS products since 2007.

The company initially planned to make a tablet when it started planning a touchscreen-centric computer in the mid-2000s. But, Alsop says, the cost of the display was prohibitively expensive, so Apple instead focused on applying the technology to a device with a smaller, cheaper LCD: The iPhone.

The price of LCD panels has droped fairly steadily, thanks to increased manufacturing efficiency, so eventually quality screens became cheap enough to make the 9.7-inch iPad economically feasible.

It won’t be long, Alsop predicts, before 15-inch or 19-inch touchscreen televisions running iOS hit the scene, probably in time for the 2012 holiday season. That’s big enough to be a serviceable TV for the kitchen, bedroom or dorm room.

More importantly, iOS will enable Apple to transform the television into something that doesn’t just show videos, but also plays games, runs apps, lets you check your schedule and tweet about what YouTube movie you happen to watching at that moment.

And it could tie seamlessly into other Apple devices, like the iPhone, iPad and MacBook Air, giving the company an enviable full-circle consumer product line. The vision might look something like what Corning, the makers of Gorilla Glass (widely believed to be the glass used for the face of the iPhone and iPad), predicted in a promotional video it published in February, below.

“You look at TVs in Best Buy and they’re the same damn things that they’ve been building for 30, 40, 50 years,” said Alsop. Although the display technology has changed and the screens are flat and high-resolution now instead of huge, low-res cathode screens, the fundamental act of watching TV is pretty much the same: Sit back and flip the channels.

“Apple will do to television manufacturers what it did to phone makers with the iPhone,” Alsop said

GOGO AND AMERICAN AIRLINES TO OFFER IN-FLIGHT STREAMING MOVIES

Gogo Wireless announced its first foray into wireless movie streaming on Wednesday, signing up American Airlines as its first partner. AA said it plans to roll out the technology across its fifteen Boeing 767-200 aircraft, and what AA is calling its "Entertainment on Demand" service is now available on flights between San Francisco and New York/JFK, as well as the Los Angeles-New York/JFK service.

American will charge an "introductory" price of 99 cents per TV show and $3.99 per movie, the company said. Users will need to own a "select personal Wi-Fi-enabled laptop" that is compatible with the service; support for Apple iPhones and iPads is coming soon, according to the American Entertainment on Demand page.

Once streamed, however, the movies will remain on a user's laptop, and available for 24 hours; TV shows will remain viewable for 72 hours. American will stock more than 100 movies and TV shows from major Hollywood studios, with the option to stream a trailer before making a selection.

TACO BELL TO OFFER FREE WIFI AND TV

The border runners at Taco Bell have fallen behind the ginger clown and his posse of hamburger-loving friends in terms of connectivity, but the fast food franchise will soon rectify that with the introduction of free WiFi at 5,600 locations over the next four years. In an attempt to keep you connected whilst stuffing your face with Beefy Melt Burritos, Taco Bell has teamed up with Indoor Direct to bring in-store WiFi and a specially branded TV network to the chain. Diners will apparently be encouraged to interact with content running on the network, with enticements to download free music, receive opt-in text messages, and engage in social media campaigns.

HULU STRIKES CONTENT DEAL WITH FOX AND DISNEY, NBC IN TALKS

Now that Hulu's owners have apparently decided the best thing to do is sell it to someone else, long arrangements for content are needed to bring the highest price. Bloomberg is reporting that after cutting a deal with Fox a few days ago Hulu has now tentatively reached a deal with another of its owners, Disney. While both arrangements could keep the TV shows flowing, they also reportedly include provisions to increase the number of ads shown on the service. That would also put it in position to reach a similar agreement with Comcast-owned NBCUniversal, because of the media giant's FCC promise to reach similar agreements as its competitors for online content.

RUMOR: APPLE PLANNING iOS POWERED TV COMING IN FALL

Apple may have an iOS powered TV in the works. According to Daily Tech, one former Apple executive recently said that customers will soon be able to “go into an Apple retail store and be able to walk out with a TV. It’s perfect.” Apple won’t build the televisions itself, though. Instead a manufacturer like Samsung may be behind the product. The former exec also said that the Cupertino-based firm will “blow Netflix and all those other guys away,” so we presume there’s a connected aspect that will allow users to access iTunes content in a manner similar to the current Apple TV product. Apple has been rumored to be working on a connected television numerous times in the past, though obviously nothing has materialized to date.

RUMOR: YAHOO LOOKING TO ACQUIRE HULU

According to the LA Times, Yahoo Inc. recently approached Hulu to discuss a possible acquisition of the popular online video service, citing a source with knowledge of the matter. Hulu, whose owners include media giants News Corp., Walt Disney Co. and Comcast Corp., has been struggling to find a balance between the desires of consumers to watch shows free online and its owners' interest in protecting the value of their programming. Late last year, it launched a paid subscription service to complement its free offerings.

Although there has been interest in the company, it remains unclear whether its owners have any desire to sell. Hulu has not taken any traditional steps associated with a sale such as retaining an investment bank to field offers. However, it is currently undergoing a restructuring that would give Chief Executive Jason Kilar and his executive team greater autonomy while imposing new rules on the availability of television content.

On Tuesday afternoon, word of the unsolicited offer spread and was subsequently confirmed by people close to the company. It is not known whether the offer came from Yahoo or another entity. Spokespersons for Yahoo, Hulu, News Corp. and Comcast declined to comment. A spokeswoman for Disney did not immediately respond to a request for comment.

BIGGEST THREAT TO TV ADERTISING IS SMARTPHONES, NOT DVR

TV viewers are a famously fickle bunch, which tends to drive TV advertisers crazy. The prevalent theory remains that skipping past ads using a pesky DVR is the biggest enemy of marketers, but new research has once again contradicted that received wisdom.

The IPG Media Lab in Los Angeles pulled together a representative group of 48 TV and online video viewers and asked them to sit through some programming while equipped with the usual "devices or distractions" that accompany their viewing habits. Central to the study was the measurement of time each person spent facing the screen and how engaged they were with the content.

The first thing noted was that 94 percent of TV viewers and 73 percent of online video consumers used some other form of media to augment their visual entertainment. Smartphones were the most common, with 60 percent of test subjects resorting to their handset while gawking at the TV. That's resulted in a mediocre 52 percent attention level during actual programs and 37 percent during ads. In other words, two thirds of the time, commercials are being ignored and smartphones are helping people with that heinous behavior.

Ironically, fast-forwarding adverts using a DVR garnered attention levels that were 12 percent higher, mostly because people were trying to make sure they didn't skip too far ahead.

SHARP HALTS PRODUCTION AT TWO LCD PLANTS IN JAPAN

Toshiba, Hitachi, and Panasonic already said they would shutter their liquid crystal display plants for a month following the 9.0 magnitude earthquake and resulting tsunami that struck the country on March 11. Now, Japan's largest exporter of LCD TVs, Sharp, has suspended production at its two biggest factories, thanks to a shortage of a gas used in the manufacturing process. The Osaka and Mie plants, which have a combined capacity of 172,000 sets per month, won't reopen until May 6, at the earliest. Until then, the company claims it has enough TVs in its inventory to last about a month. One JP Morgan Chase analyst estimates that the company stands to lose 50 billion yen ($590 million) this fiscal year due to the freeze.

CABLEVISION LAUNCHES iPAD APP, OUTDOES TIME WARNER

We knew that Cablevision was involved in creating an iPad app that enables the viewing of TV content, but we didn’t know that the app would offer iPad owners a better experience than FIOS’ and Time Warner Cable’s offerings. Cablevision’s Optimum app lets you, from behind your own network at home, view your entire channel lineup directly from up to two iPads simultaneously, complete with program guide information, access to the company’s more than 2,000 VOD offerings with the rest coming this summer, while also letting you record and control your DVR directly from the app.

After entering their Optimum account username and password, users can immediately access every Optimum channel that subscribed to from the iPad. It doesn’t look like you’re able to currently watch any recorded video from your DVR, but that’s not such a big deal in my book. Cablevision told says their app doesn’t use the internet to deliver video to your iPad, nor is the content streamed, rather it’s sent over the company’s network just as it works with your set-top box. If you are an Optimum customer that doesn’t have a cable modem, Optimum will provide an internet-blocked cable modem for free that will enable you to use the iPad app with a user-provider secure wireless router. Cablevision also said that they plan to deploy the same experience to other devices, so we anticipate an iPhone and Android app in the future.

CBS TO REMOVE SOME SHOWTIME SHOWS FROM NETFLIX

CBS confirmed today with Dow Jones that it will pull some of its Showtime television shows from Netflix, and apparently Netflix is pretty shocked by the news. A Showtime spokesperson said that it will remove the episodes of shows that are currently still airing on television from Netflix’s portfolio when the current partnership deal between the CBS and Netflix ends this summer.

“We’re perplexed by this,” Steve Swasey, a Netflix spokesperson told Dow Jones. “We have great Showtime shows available on our service, and we expect to continue with those shows. We have a very good relationship with CBS and all its channels.” Two popular shows that are currently offered by Netflix and are still airing are “Californication” and “Dexter.”

SAMSUNG SAYS GLASS-LESS 3D TV AT LEAST 10 YEARS OFF

Despite Toshiba having glasses-less 3DTVs on the market already, Samsung's spoken out about the future of 3DTV by saying "attempts to put glasses-free 3DTV to market within the next 10 years will be difficult." Uh-oh.

Samsung elaborated by explaining that they have the means and know-how to make glasses-less 3DTV, "however it can only be viewed from a few viewing spots." Preferring instead to launch glasses-less 3DTV that works like the current range of 3DTVs, sans glasses of course, Samsung had said they'd prefer to wait until they can "deliver 3D to at least 32 viewing spots." One of their prototypes they showed off recently had just nine spots.

"We believe that creating a prototype for lab-grade glasses-free 3D TV, broadcasting system and display will take about five years. For mass commercialization to become possible, manufacturing costs must come down and TV broadcasters will have to upgrade infrastructure, which includes securing transmission bandwidth."

Toshiba's foray into glasses-less 3DTV hasn't gone so well so far. Setting themselves a target of selling 1,000 units in the first month, they fell short by more than half. This could be down to the size of the sets, which were a comical 12 and 20-inches.

RUMOR: AMAZON LAUNCHING STREAMING MOVIES FOR PRIME SUBSCRIBERS

A rumor is circulating that Amazon will soon be launching a Netflix movie/tv streaming service. The rumor goes on to say that the service will launch free for Amazon's Prime subscribers. Currently, Prime subscribers pay $79/year for a few reduced/free shipping options. Adding a streaming service to their subscription will definitely help boost the value.

The selection will have "unlimited, commercial-free, instant streaming of 5,000 movies and TV shows" with selections that mirror the Watch Instantly catalog closely. Resolution is apparently limited to a "pretty solid" 480p SD, but there's no word on audio or subtitle options.

Also helping to fuel the rumor, the domain primeinstantvideos.com has been registered by Amazon's DPReview.