Commerce

Analysis: MySpace Is A Growing Source of Traffic for Shopping Websites

Authored by LeeAnn Prescott on June 6, 2007 - 8:56am.

How have sources of traffic to Shopping and Classifieds websites changed over the past year? In May 2007, the Hitwise Shopping & Classifieds category received 24.95% of its upstream visits from search engines. This number increased by only 0.7% since May 2006, but the balance of search engines sending traffic has changed in favor of Google.

Music Industry Remains Divided Over DRM

Authored by Jay Baage on February 27, 2007 - 1:19pm.
DMFE2007_1 From Digital Music Forum East 2007: The future of music is not dropping DRM, but offering consumers new innovative music products, according to Thomas Gewecke, SVP, Digital Business Group, Sony BMG, at Digital Music Forum in New York City. However, many other industry insiders disagree.
tags: Music | Commerce | MP3 | DRM | Sony BMG | Events | DMW | DMFE |

Let Them Have Content, Say Studios to BitTorrent

Authored by Michael Cai on February 26, 2007 - 10:20am.
After much anticipation and some expected delays (convincing content providers to use a new platform is very time consuming, if you have not heard), BitTorrent is finally launching it's entertainment network. We [Parks Associates] are believers in P2P content delivery, be it P2P download or P2P streaming, and it's great to see major content providers finally embracing it. In a recently published report on Internet video, Parks Associates wrote:

Blockbuster Poaches Netflix Customers with "President's Day Pardon"

Authored by Rohit Bhargava on February 19, 2007 - 8:37am.
Blockbuster ScreenshotNetflix has always focused on innovation with everything from their award winning user interface to the longstanding Netflix Prize.  Aside from technical innovation, they have also pioneered a new business model for online on-demand movie downloading by charging consumers based on the hours they watch, streaming movies without actually downloading them and letting users switch instantly from film to film as easily as changing channels.  Ultimately, they will need all this innovation - because Blockbuster is getting smarter and smarter about finding ways to exploit their only competitive advantage over Netflix - their physical stores.

Virtual Item Exchange Should Be Legalized

Authored by Michael Cai on February 13, 2007 - 8:33am.
Economics 101 says that when there's a demand, there should be supply. That is exactly what's happening with virtual item exchange. For those who don't follow the game market, virtual item exchange means using real-world currency to purchase virtual items. For instance, a player of World of Warcraft could buy a special sword from another player for $5 and enhance his gaming experience and a player of Second Life could acquire a virtual castle for her avatar for $1,000.

WSJ: EMI in Talks With Retailers to Sell Songs as Unprotected MP3s

Authored by Mark Hefflinger on February 9, 2007 - 8:12am.

New York - Major record label EMI has held discussions with online retailers on potentially opening its entire catalog for sale in the unprotected MP3 format, The Wall Street Journal reported on Friday. Citing "numerous people familiar with the matter," The Journal said EMI asked retailers to submit proposals by Thursday, detailing what kind of advance payments they'd make for the rights to sell EMI songs as MP3s.

Local Search Engine Krillion Launches with Dedicated Appliance Search

Authored by Peter Krasilovsky on February 7, 2007 - 11:45am.
Krillion, a startup with deep pockets from Hummer Winblad, launched the first iteration of its “localized search engine” today. The highly attractive, ad-supported service is kicking off with a dedicated appliance search. The next wave of localized searches will include seasonal appliances, consumer electronics, and lawn & garden.

On This Week's Episode of "Leave it to TiVo"...

Authored by Kurt Scherf on February 7, 2007 - 11:31am.
There's a joke in this industry that you can always tell who the pioneers are from the arrows in the back of their back. I recall Peter Lee from The Walt Disney Co. using this phrase at last year's CONNECTIONS conference as he was discussing ABC's moves into online video distribution and how they were getting pushback from some local affiliates. Well, the ABC folks can take some comfort in the data as they bind their wounds. According to Disney's latest earnings information, more than 19 million streams of ABC programs have been requested through ABC.com, ad retention rates stand around 85%, and CPM numbers for the online videos are 4-5x those of primetime viewers age 18-49.

TiVo, Amazon Enable Unbox Movie, TV Downloads to TiVo Boxes

Authored by Mark Hefflinger on February 7, 2007 - 11:05am.
Alviso, Calif. - TiVo announced on Wednesday that it has partnered with Amazon.com, to enable TiVo users to rent and purchase movies and TV shows from Amazon's Unbox video download service and watch them on their televisions.
tags: Internet | Video | TV | CE | Movies | TiVo | DVR | Commerce | Amazon | Set-tops | Unbox |

Analysis: Apple CEO Steve Jobs Talks of Getting Rid of DRM, But Does He Walk the Walk?

Authored by Jay Baage on February 6, 2007 - 11:32am.
In a manifesto-like document “Thoughts on Music” published on Apple’s website, Apple’s CEO and Co-Founder Steve Jobs addresses critical issues related to digital rights management (DRM) and the future of music. Apple has been notoriously opposed to open standards, but faced with increasing pressure from European nations and other market forces to open up or license its FairPlay DRM technology, Jobs has now done a 180 degree turnabout – well sort of.

The DMW Interview with Ted Sarandos, Netflix Chief Content Officer

Authored by Scott Goldberg on February 1, 2007 - 2:10pm.
Ted Sarandos, Chief Content Officer, NetflixNetflix has always defied its critics, and every year more skeptics surface with a new reason why the company lies on the brink of extinction. But over the past four years the company has been engaged in a strategy to take it well into the next cycle of the film viewing experience. It has embraced the advantages of the internet, and even prepared itself for the death of its bread-and-butter, the DVD. I sat down with Ted Sarandos, Chief Content Officer, to discuss the future of the industry, and the space his company will find itself as it moves ahead. He will also be delivering a keynote address discussing many of the following topics at the Future of Film Conference in March.

Teen Sued for Music Piracy Files Countersuit; Alleges Label Collusion

Authored by Mark Hefflinger on January 31, 2007 - 10:19am.

White Plains, N.Y. - A teenager sued by the major record labels for copyright infringement on file-sharing networks has accused the labels of collusion, extortion and conspiring to defraud the courts, the Associated Press reported on Wednesday.

Search Engines Larger than Adult Sites

Authored by Hitwise on January 30, 2007 - 2:34pm.
The following is a blog entry from Heather Hopkins at Hitwise: Last night I gave a two minute talk at one of Robert Loch's Internet Peeps events. The topic that I, and 15 others, were asked to speak to was "The Future of the Internet". A lofty topic... To get a sense for where things are going, I first looked at the growth and decline of the categories of websites that we track, based on the share of UK internet visits each attracts.

Field Trip Report from GameStop

Authored by Michael Cai on January 29, 2007 - 9:15am.
I made two trips to two different gamestop stores in Plano and Frisco over the weekend, trying to do some informal channel research on the three next-gen game consoles. Both stores have sold out all of their Wii consoles but have PS3 machines available. The store in Frisco, which is inside of one of the most popular mega-malls in the area, has two PS3s and the sales clerk said they've had them for more than 3 days. In contrast, besides a Wii for demo purposes, they don't have any Wii consoles left in store.

Analysis: Digital Music Downloads at Starbucks from Zune?

Authored by Jay Baage on January 28, 2007 - 9:15pm.
Zunemaster at a Starbucks (via Flickr)Starbucks Chairman Howard Schultz last week gave some insight into the company’s future music strategy at a talk in New York, stating: "Within 12 months, probably, you're going to be able to walk into a Starbucks and digitally be able to fill up your MP3 player with music”. He also added that "over the next 6 to 18 months you will see us look at it, perhaps test it”. The question is - why would people buy their music at Starbucks in the first place?

It is fairly clear why it makes sense for Starbucks to sell music: diversification of revenue streams; increasing foot traffic and time spent in stores; as well as the opportunity to increase sales per customer. However, Starbucks removed CD-burning machines out of most stores that trialed them last year. It seemed like a natural step to replace those machines with technology for downloading music to MP3 players, since the general trend in the music industry is towards digital delivery - so far so good. But the question remains, why would people buy their music at Starbucks?

Now Is the Time for Blockbuster to Make Its Move

Authored by michael_greeson on January 26, 2007 - 4:26am.
It's time for Blockbuster to get into the online download business. The market is only now emerging and the pickings are slim, but it's not too soon for the company to expand its offerings to include web-based movie downloads and rentals. It could be the only company to offer a true "triple-play" of mail, brick-and-mortar, and online access - a combination that (given innovative marketing) could give a second wind to a dying brand and uniquely position the company for long-term success.

Spotlight: Will Netflix’s Red Envelope Entertainment be Sundance 2.0?

Authored by Scott Goldberg on January 25, 2007 - 1:12pm.
An Reasonable ManCurrently playing at Sundance and due in 22 cities by the beginning of March is a documentary about Ralph Nader’s life entitled An Unreasonable Man. Regardless of your opinion of Nader or the film, perhaps the most intriguing aspect is the involvement of Red Envelope Entertainment, the content acquisition and production division of Netflix. A company with a reputation for innovative business ideas, Netflix is hoping to become a tastemaker as well, leveraging its 6 million subscribers to acquire, create, and distribute original content. It’s a logical addition for the company, though puzzling on the surface. Why, many might ask, would a DVD rental company believe it could succeed in the fickle waters of the film industry?

Digital Content Marketplace TidWiT Joins Virginia Incubator Program

Authored by Mark Hefflinger on January 24, 2007 - 1:37pm.

Reston, Va. - INCspire, the Incubator Program of the Greater Reston Chamber of Commerce, announced this week that TidWiT has become the newest company to join the program. TidWiT, which was formed by CEO Will Yafi, is an online marketplace for digital content. "We had been operating out of a basement for the better part of two years and it was time to get above ground so to speak," said Yafi. The service helps bloggers and others to buy and sell digital content (including text, music, images, video or software). TidWiT's said its platform allows sellers to post their digital content, price it, and classify it.

Online Payments Provider Bitpass to Shut Down

Authored by Mark Hefflinger on January 22, 2007 - 9:36am.

San Mateo, Calif. - Bitpass, a four-year-old provider of online payment processing services, has announced that it is discontinuing operations, due to "circumstances beyond our control," CEO Matthew Graves wrote in an e-mail to customers.

M2 Media Group Acquires Online Magazines Site BlueDolphin.com

Authored by Mark Hefflinger on January 18, 2007 - 10:58am.

Stamford, Conn. - M2 Media Group, a magazine subscription agency, has acquired the online magazine website BlueDolphin.com from Zinio Systems, for an undisclosed price.