The UpStream

Facebook Considering Dedicated Video Service

posted Sunday Jan 31, 2016 by Scott Ertz

Facebook Considering Dedicated Video Service

Over the past year or so, Facebook's commitment to video has increased hugely, sometimes for the better, sometimes not. For example, the company decided to auto-play videos in your newsfeed as you scroll past them. It does make sense that motion will attract people's eyes, but for many the move was annoying. They have also enhanced their video player to suggest related videos and, in some cases, auto play the next video in line.

These changes have created a scenario where around 500 million users watch some sort of video on Facebook every day. One day last quarter, the network watched 100 million hours of video, meaning every one of those 500 million users watched an average of 10 minutes of video that day. This is a huge development for the company. In response, CEO Mark Zuckerberg said,

We are exploring a dedicated place on Facebook for when they just want to watch videos.

Now, this could be a dedicated Facebook Videos app, similar to how Google implemented Photos. It could also mean a video-specific landing page within the main site, more inline with Pages or Groups. Either way, this move will likely lead to what we have thus far avoided: pre- and post-roll ads on Facebook Videos.

This would not be unexpected, as Facebook's revenue is mostly from advertising and video is a popular medium for advertising. COO Sheryl Sandberg said,

Marketers also really love video and it's a compelling way to reach consumers.

That comment certainly lends credence to the idea that we will see a lot more video advertising inside this new platform, whatever it turns out to be.

Chrome to Label Unencrypted Sites as Problematic

posted Sunday Jan 31, 2016 by Scott Ertz

Chrome to Label Unencrypted Sites as Problematic

Most Internet traffic today is unencrypted. This is because security certificates are not free and can be expensive. They can be $70 per year, which makes them a little out of range for smaller sites. It is also not an essential part of a site that only provides information and never collects it. For example, looking at the sites I have open right now, Electronic Arts, VentureBeat, PC World and SlashGear all run in standard HTTP.

Google is trying to make HTTP a scary term, giving Chrome users the ability to turn on a feature that will add a red X to the address bar for sites that are not encrypted. Fortunately for smaller sites, this is a "feature" that is off by default and must be turned on manually by the user. That means that the people who will see it are people who are people who know what it means and want to be alarmed.

That is not to say that it will always be this way. Google has been an advocate for SSL, even if there is no sensitive data being transferred, for years. While they claim to not want to be too heavy-handed, this move appears to be the begging of bringing down the heaviest of hands. If they change their mind and turn this feature on by default, webmasters will be in trouble and users will be scared by nonsense.

A Google employee told Motherboard that the goal is to turn this feature on "someday, hopefully," a move that will likely alarm a lot of Internet users who are not aware of Google's redefining the icon in their browser (which currently indicates that the security certificate is flawed).

Highlighting the Industry's Disinterest, EA Exits E3 2016

posted Sunday Jan 31, 2016 by Scott Ertz

Highlighting the Industry's Disinterest, EA Exits E3 2016

Over the past 5 years, the Electronic Entertainment Expo, or E3, has been losing steam in the industry. Activision, Nintendo and others have taken turns skipping the event and, instead, make their announcements off-site. Activision rented a church for their press conference one year, while Nintendo has opted for online-only press events and in-store hands-on demos the past few years.

This year, adding to the list of major industry players skipping the conference is Electronic Arts. Rather than filling their massive show floor presence with dozens of demo stations available to attendees, EA has opted to take over nearby Club Nokia and will instead offer their hands-on demos to fans and press alike at an event they are calling EA Play.

In addition to demos, they will also offer competitions and live streaming for those who will not be in the LA area during E3 2016. They will also have exclusive items available, making their event much more like San Diego Comic-Con or PAX than the increasingly uninteresting E3. They will also be hosting a sister event in London on the first day of the event, June 12th.

The good news is that, despite not participating in the show, they will still be hosting a press conference live from EA Play. This means we will still get the spectacle that is EA's new products. We can also expect to see a bigger on-stage presence during Microsoft's and Sony's press conferences.

I believe that this is the beginning of an exodus from the conference, whose management has turned off exhibitors and press, leaving everyone looking for a better alternative. Hopefully in the next few years, we will have an industry event that is run properly and does not alienate everyone involved.

Microsoft Revenue Driven by Surface and Azure

posted Sunday Jan 31, 2016 by Scott Ertz

Microsoft Revenue Driven by Surface and Azure

Over the past few years, a lot has been written about Microsoft's financial standing. Some organizations, mostly tech blogs with financial interests in Google or Apple, have said that Microsoft is old tech and is over. Others, though, especially organizations that specialize in business and investing, have said that Microsoft is about to retake the crown as kind of the tech industry.

In the midst of tech blogs announcing that Microsoft's mobile ambitions have failed, Microsoft has announced their Fiscal Year 2016 Quarter 2 (3 months ending December 31, 2015) revenue. Revenue is down slightly, but not in any percentage that matters, especially considering Microsoft didn't release a new phone until the very end of the quarter. Windows OEM revenue is pretty flat, Search Advertising and Xbox Live are growing. Those aren't the places that matter, though.

In this quarter, the Surface brand drove $1.35 billion in revenue, up from $672 million for the previous quarter, and $1.1 billion this quarter last year. That seems to indicate that Microsoft's mobile ambitions are playing out very well, not failing in the way some sites might have you believe. This is "driven by the launch of Surface Pro 4 and Surface Book," which was a big change in the way Surface was designed, marketed and sold. It seems that the revised strategy after the merging of Lumia and Surface has been a success.

Another division driving growth for the company is their cloud strategy. Investment site The Motley Fool has said Microsoft rules the cloud, which is a pretty accurate assessment. While companies like IBM may have some specialized APIs for things like image detection and facial recognition, Microsoft's Azure service offers developers and virtual IT managers the biggest selection of options and most robust platform available, and everyone seems to be flocking to it.

With revenue of $6.3 billion for its cloud services, it represents a 5% growth for the division. The growth is led by Azure and Office 365, which now has almost 21 million subscribers, up more than double in the past 12 months. These businesses are the biggest business shift for the company, no longer relying of the success of any Windows platform, but instead spreading the love across all platforms, meaning that even if Windows 10 had been a sales problem, which it has not, the company has a backbone to stay strong.

Microsoft's stock price rose 5% despite its declining revenue.

Blizzard's Overwatch Closed Beta Relaunch Delayed Several Weeks

posted Monday Jan 25, 2016 by Nicholas DiMeo

Blizzard's <i>Overwatch</i> Closed Beta Relaunch Delayed Several Weeks

A little over a year ago, you may have read about Blizzard's new FPS Overwatch. The game is a little over-the-top, but looks to take on Valve's extremely popular team-based strategy shooter, Team Fortress 2. And if you're me, you've been playing the closed beta since it went live all the way to when the devs closed it in December. We were promised the game would return for another round of closed beta testing "soon," however soon will not be coming soon enough as it looks like the next iteration of game testing will be put off for a little longer.

We were supposed to hear from Blizzard this week about the re-launch of the closed beta for Overwatch, with rumors swirling that it would be sometimes during the last week of January. Sadly, we're now being told via blog post that the reopening won't happen for at least a few more weeks. While that may not be a long time for some, the game's exciting and refreshing experience has gamers everywhere chomping to get back to it.

While progress has been great and the team has been working super hard to get everything implemented on time, we're not quite ready to bring the Closed Beta back online just yet...Rather than try to rush a beta patch out this month (which would mean the new game mode would have to be put off), we're going to take a few extra weeks before bringing the Closed Beta back.

Now, the good news is that the team is taking the extra time to actually implement some user feedback. A new game mode in addition to Point Capture and Payload will be added in the next update. The dev team will also be working on some serious game balance issues, along with improving its core progression system.

Game Director Jeff Kaplan closed the blog post by saying the choice was easy and we should expect the game to be reopened for testing in mid-February.

Netflix Adds New Emphasis on Original Content for Children and Families

posted Monday Jan 25, 2016 by Nicholas DiMeo

Netflix Adds New Emphasis on Original Content for Children and Families

Last week, Hulu struck a deal with Sony Pictures to add more movies and big-name content to the platform. Not to be outdone, Netflix announced this week that it will be spending a large amount of its $5 billion programming budget for 2016 on children and family content, to further cement itself at the top video-streaming service.

Chief Content Office Ted Sarandos announced that Netflix is "doubling down on kids and families." As it stands, Netflix has just over a dozen original shows that are focused for children. Over the span of the next year, the company will up that number to 35 total programs.

While Netflix currently has hundreds of shows for kids on the network, most of them are acquired through their licensing deals. That was an important first step for the platform, which has a formulaic approach to targeting its key demographics. The next step, which has proven successful for Netflix, is to create new, original content in order to keep its consumers locked into the service.

Sarandos also acknowledge the challenge that the company faces on a global level. While their security team is currently blocking VPN and proxy services, Netflix understands that its customers use those services because a lot of content isn't available outside of the US. He promised this week to focus heavily on global license agreements.

We are running a global network that is not easily comparable in business or cultural terms to anything that has come before. Every year the exclusions of different countries in our licensing agreements will become less and less.

The show titles and storylines haven't been announced yet, but Sarandos said that information would be coming in just a few weeks as the ink dries on the fresh sheets of printed paper.

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