Apple is designing a television that you can shout and gesticulate at – and it will understand you.

Having revolutionised the music and mobile phone industries with its iPod and iPhone, the company is planning an “iTV” to turn couch surfing into a hi-tech experience.

The Japanese firm Sharp has been asked to begin commercial production of Apple TV screens in February, with the sets available in the second half of 2012, according to analyst Peter Misek at the American bank Jefferies.

In mid-September, Viacom executives found what executives later called an “inexplicable” glitch in viewership for the company’s popular child-oriented cable network Nickelodeon: Nielsen posted a ratings decline ranging from 15% to 20%. “Children’s overall media use has actually increased but is split between TV, video games, computers, social networking, DVDs, music and other types of formats,” said T. Makana Chock, associate professor at Syracuse University’s S.I. Newhouse School. “They are also multitasking more frequently.”

Indeed, a January 2010 study from the Kaiser Family Foundation determined that viewership of regularly scheduled TV programming by children ages 8 to 18 had declined by 25 minutes a day—the time such usage had fallen since Kaiser first started studying those media habits in 1999. While the younger set continues to watch TV, more “is either prerecorded or watched on other platforms,” the report found.

It’s a big deal when an analyst as respected as Credit Suisse’s Stefan Anninger slashes his pay TV subscription forecast for 2012 to a 200,000 loss from a 250,000 gain, which is what he did this morning. But the rationale behind his decision is even more noteworthy: He cites a Credit Suisse-commissioned survey that found evidence of a youthful revolt against the pricey video packages. Lots of young adults aren’t cutting the cord; they never subscribe in the first place. Anninger says that while the evidence is still mostly anecdotal, “we are confident that a relationship exists” between high pay TV prices and declining subscriptions. And the growing group of “cord nevers” (as opposed to “cord cutters”) is “the biggest challenge pay TV will face over the next 10 years” after piracy and soaring programming costs — although “it does not feel like the industry is yet willing to admit that reality.

Much like human beings have become increasingly untethered, so too is television. With smartphones and iPads now promoting content where, when and how consumers want it, the trend is not being lost on television. According to the MediaPost news item, ABC Studies iPad: Redefines TV Viewing, “The iPad surely will play a role in accentuating that lesser connection to time and place going forward. ABC would have studied viewer usage of other tablets, but none had critical mass. That might change with the introduction of the new Kindle.”

The news item goes on to define three emerging TV viewing trends:

1. Micro-mobility. Consumers would like TV content on-demand, but not just from the comforts of their home… they want it from the beach and commute to work to their backyards and across multiple platforms.
2. Parallel Play. Your wife is watching American Pickers while you’re sitting there next to her watching an episode of Pawn Stars on your iPad. Parallel play is all about people in the same room watching different shows on different platforms.
3. Marathoning. If it weren’t for marathoning, I would have never been able to see Mad Men or Battlestar Galactica. Marathoning is when a viewer watches multiple episodes of the same show, one after the other.
Think about how television makes it money.

The promise to advertisers was all about the captive audience at a set time on a set date. Yes, the branding power has now been extended because people do use a DVR or download their shows from iTunes, but this changes the advertising model. On top of that, the ability to skip and fast-forward commercials has been the bane of television since the first VCRs were introduced. There is no doubt that brands and their media reps are getting smarter and better at capturing attention, but the format of TV advertising must adjust to this… much like it will have to adjust even more as these new trends in usage and consumption continue to evolve.

Blip.tv released the findings of the largest research initiative to date focusing on original web video.

The study, performed by Dynamic Logic, offers insights into how, when and where blip.tv audiences are consuming online video, and has strong implications for the future of televisiona and online video. The study’s results shed light on viewer attitudes towards online advertising, the extent of cord cutting, and the prime hours for original series viewing.

Key findings include:

- Viewers are cord cutting. Online video consumption is rising as TV viewership is shrinking: compared to six months ago, viewers are watching nearly 9% less cable television, and increasing online content viewing by 26%. Online programming consumption on Mobile and video game platforms is up 19% and 18%, respectively.
Original online series are being watched during prime-time hours. Findings show that 8-11 pm is the most common time period for people to watch. 6-8pm is second most common.
- Advertising is more acceptable for original online series than for television streamed online. The research showed that for blip.tv’s audiences, 43% reacted positively to pre-roll advertising on original online series, whereas only 30% reacted positively to pre-roll advertising on television content streamed online.
- The average viewer of online series is 33 years old, and college educated. And the viewers are evenly divided between men and women.

Will Amazon (Nasdaq: AMZN) follow Netflix’s (Nasdaq: NFLX) lead and separate its nascent instant streaming video play from its massive e-commerce business?
BTIG analyst Richard Greenfield thinks it’s more than likely Amazon CEO Jeff Bezos will “follow (Netflix CEO) Reed Hastings’ playbook” and eventually break off the streaming business and use the Kindle Fire to, um, fuel its growth.

As to when, and if, Amazon will spin off the video streaming business, Greenfield put it this way: “Looking at how Netflix approached its evolution, it is hard not to see parallels with Amazon’s evolution, with Amazon essentially incubating Instant Video streaming within Prime. Given Netflix’s bold pricing/packaging moves (which has likely helped open the door for Amazon and other competitors), we would not be surprised to see Amazon offer a standalone streaming video product in the next six-months.”
And, he said, Amazon might even spin it off totally from Prime, allowing Amazon to drop the price below the $79 a year ($6.58 a month) price tag the service currently carries.

Challenging Netflix, online video service Hulu has joined the bidding war over exclusive rights to new episodes of Arrested Development, Vulture reported. 



Creator Mitch Hurwitz had said a few days ago that he and producer Ron Howard were eyeing a limited-run series to set up a long-awaited Arrested Development movie.

Companies interested in acquiring Hulu are reportedly making another round of bids this week, according to The Wrap. But interest in the company is waning, possibly due to the fact that Hulu’s content isn’t all that exclusive.

Take Yahoo, for instance: It might have shown early interest in acquiring Hulu, lining up alongside potential suitors such as Google, Amazon and Dish Network. However, while a Yahoo exec wouldn’t rule out an acquisition on Tuesday, Hulu’s broadcast TV content is a big part of Yahoo’s newly launched ‘Screen’ video portal.

Through a partnership with Hulu, Yahoo has access to broadcast TV content from ABC, Fox and NBC, as well as shows from some cable networks like MTV and Comedy Central. In the TV portion of the video portal, Yahoo has also aggregated the Hulu content with video from CBS, the lone broadcast network holdout from Hulu. Of course, Yahoo isn’t the only provider to do so; Comcast’s XfinityTV portal has had Hulu shows available for years.

Your movie Purple Violets premiered exclusively on iTunes. Did the experiment work?

Yes it did work, but up to a point. What we found was when we took Purple Violets out to the marketplace, we got a distribution offer, but it was sort of this new style of distribution offer that you were getting from the specialized distribution companies where they were doing no-advance acquisitions. The back-end deals were much more favorable, where you would do a 50-50 split after they recouped their costs, but they weren’t giving you any advance on the movie. Listen: I’m not the first guy to complain about Hollywood bookkeeping, but you never see any of the profits. And the other thing happening was specialized films were dying on the vine theatrically.

Ted Sarandos, chief content officer of Netflix, announced in Cannes this afternoon that Netflix is adding Norwegian-produced TV show Lilyhammer to its original programming lineup. Stevie Van Zandt — who so memorably played mob consigliore Silvio Dante in The Sopranos — plays a Mafioso who testified against his former boss in New York and winds up relocated to the Norwegian countryside as part of the Witness Protection Program.
Lilyhammer will premiere on Netflix. Sarandos, who was being interviewed by Miramax CEO Mile Lang, said that 60% of viewing on Netflix’s newly separated streaming business is for TV episodes, with Mad Men and Breaking Bad being most popular.
Sarandos said that Netflix was looking for global rights for movies and TV shows, rather than U.S.-only deals like its Starz agreement. He also talked about promoting TV shows that are popular in one territory to Netflix’s global viewers. What kind of shows would he be looking for? “If you want to see what people really want, look at what they’re stealing,” he said.