Amazon.com Inc has officially launched a full-fledged music streaming service with subscriptions as low as $3.99 per month for owners of its Amazon Echo speaker, accelerating the industry trend toward more flexible pricing after years of sticking to $9.99 subscriptions.
The new streaming service, called “Amazon Music Unlimited,” lets users access a vast catalog of songs on demand, similar to Spotify and Apple Music. Subscriptions to play music on the Echo cost $3.99 per month; for access beyond that device, subscriptions cost $7.99 a month for members of Amazon’s Prime shipping and video service and $9.99 for non-members. Amazon will continue to offer Prime members a limited streaming service for free.
As it plunges deeper into the crowded streaming field, Amazon is counting on the Echo, a smart speaker that responds to voice commands, to set it apart. Released broadly last year, the Echo has become a surprise hit, prompting many to predict that voice will become a key way users interact with technology – and music is central to the device’s appeal.
Amazon has built an elaborate system of voice controls for listening on the Echo. The company believes such smart home devices will be a key source of growth for the music industry, said Steve Boom, vice president of Amazon Music.
“The first phase of growth (in music streaming) was driven almost entirely by smartphones,” he said in an interview. “We believe pretty strongly that the next phase of growth in streaming is going to come from the home.”
The low price for Amazon’s streaming service is consistent with the company’s reputation for undercutting the competition and signals the music industry is beginning to accommodate consumers who are unwilling to pay $9.99 per month. Having watched revenues plummet from the CD era, label executives have been reluctant to budge on price, but they have come under pressure as streaming accounts for more of the pie.
Boom said he is optimistic that the new prices will expand the market.
“We’re moving music away from a one-size-fits-all approach,” Boom said. “We are the ones who have been pushing this the hardest.”
Streaming services must pay a majority of their revenues to rights holders, a business model that has left Pandora and Spotify struggling to turn a profit. But Amazon can afford to take a loss on music streaming, and the boost to Prime is well worth it, analysts say.
The premium music service, following the release of a standalone video service, suggests Amazon will increasingly offer basic media options through Prime while selling additional subscriptions for consumers who want to go deeper, said analyst Jan Dawson of Jackdaw Research.
The first-generation Echo device is a voice-activated household digital assistant that can be used to play music, read audiobooks, answer questions about the weather, traffic and latest news, or control IoT-connected light switches and thermostats, among other useful utilities. The device launched in November 2014 and features a Texas Instruments single-core ARM Cortex A8, along with 256MB of LPDDR1 memory and 4GB of storage capacity.
The new Echo Dot will be launching later this month with a MediaTek SoC, while the report suggests shipments of the chip are expected to peak between October and November. The chip is expected to improve the device’s ability to hear a user ask a question from any direction, though this will likely be tested when reviews are posted in a couple weeks. Meanwhile, Amazon will continue sourcing from Texas Instruments to produce Cortex A8 chips for its existing Echo device.
Amazon been purchasing chips from MediaTek since at least 2014 for use in Kindle Fire HD tablets and OTT devices, and now wants them to be part of the smart home device market as well.
In September, the company announced it would release a software update to support Echo Spatial Perception between existing Echo and newer Dot devices, allowing a single device to answer a voice command based on nearest proximity to the user. Of course, Amazon wants its customers to buy at least half a dozen of these assistants to scatter around the house, with bulk discounts available on six and twelve packs at $49 and $99 price reductions, respectively.
The Echo Dot will go on sale October 20th and is currently available for pre-order on the product page for $49.
A Democratic U.S. senator requested the software developer behind Nintendo Co Ltd’s Pokemon GO to clarify the mobile game’s data privacy protections, amid concerns the augmented reality hit was unnecessarily collecting vast swaths of sensitive user data.
Senator Al Franken of Minnesota sent a letter to Niantic Chief Executive John Hanke asking what user data Pokemon GO collects, how the data is used and with what third party service providers that data may be shared.
The game, which marries Pokemon, the classic 20-year-old cartoon franchise, with augmented reality, allows players to walk around real-life neighborhoods while seeking virtual Pokemon game characters on their smartphone screens – a scavenger hunt that has earned enthusiastic early reviews.
Franken also asked Niantic to describe how it ensures parents give “meaningful consent” to a child’s use of the game and subsequent collection of his or her personal information.
“I am concerned about the extent to which Niantic may be unnecessarily collecting, using, and sharing a wide range of users’ personal information without their appropriate consent,” Franken wrote.
“As the augmented reality market evolves, I ask that you provide greater clarity on how Niantic is addressing issues of user privacy and security, particularly that of its younger players,” he added.
Franken additionally asked Niantic to provide an update on a vulnerability detected on Monday by security researchers who found Pokemon GO players signing into the game via a Google account on an Apple iOS device unwittingly gave “full access permission” to the person’s Google account.
Pokemon GO on Tuesday released an updated version on iOS to reduce the number of data permissions it sought from Google account users.
Niantic did not immediately respond to a request for comment about Franken’s inquiry.
The company, spun off by Google last year, created the game in tandem with Pokemon Co, a third of which is owned by Nintendo.
Amazon.com Inc is gearing up to launch a standalone music streaming subscription service, placing it squarely in competition with rival offerings from Apple Inc and Spotify, according to sources familiar with the matter.
The service will be offered at $9.99 per month, in line with major rivals, and it will offer a competitive catalog of songs, the sources said. Amazon is finalizing licenses with labels for the service, which likely will be launched in late summer or early fall, the sources said.
Amazon, which offers a free streaming music service with a limited catalog to subscribers of its Prime shipping and video service, did not respond to a request for comment about the new, full-fledged music plan.
Although it will be a late entrant to the crowded streaming space, Amazon believes a comprehensive music service is important to its bid to be a one-stop shop for content and goods, the sources said.
The new music offering also is intended to increase the appeal of the Amazon Echo, its home speaker, which searches the Internet and orders products from the retailer with voice commands.
“A music service will further increase the daily interactions between Amazon and its customer base,” said former music executive Jay Samit when told about the company’s plan.
The new Amazon effort will compete directly with Apple Music and Spotify, which boast more than 30 million songs. Apple launched its service last year in one of the highest profile signs that listeners wanted subscription services, rather than paying for individual songs or albums.
The service also will diversify Amazon’s subscription offerings and be another step away from a single, annual subscription. Amazon recently began allowing subscribers to Prime to pay monthly, for instance.
Silicon Valley titans such as Apple and Alphabet Inc’s Google have muscled into music streaming in recent years, aiming to weave themselves more tightly into their customers’ daily routines and drive device sales.
Amazon similarly hopes its new service’s tight integration with the Echo will help it stand out and reinforce the speaker’s appeal, the sources said.
Released broadly last year, the Echo has become a surprise hit that rival Google is now seeking to emulate with a speaker of its own.
The move suggests that Amazon will increasingly offer basic media options through Prime while selling additional subscriptions for consumers who want to go deeper. The company recently launched a standalone video service.
The new music service is unlikely to steal many customers from Spotify, but it could pose a threat to other players, said David Pakman, a partner at Venrock who headed early Apple music efforts, when informed of the move.
After sliding its slide-rules, flicking its abacus, and counting its toes, the bean counters at Gartner have decided that the smartphone business bubble has burst splattering in the face of those who depend on it.
Big G says the market will shrink from 14.4 per cent growth in 2015 to just 7 per cent in 2016 — with only 1.5 billion smartphone units being shipped globally this year. Compair this with 2010, when Gartner notes the market grew 73 per cent.
However the signs have been obvious for about a year. Mature Western markets saturated, China’s growth engine slowing as demand has topped out and other markets unable to afford the higher margin gear. The smartphone has come to the end of its ability to provide new technology too with companies only able to offer incremental upgrades. Carriers are moving away from subsidizing upgrades which means that them wasting their own profits to prop up the likes of Apple are over.
In emerging markets it says the average lifetime of premium phone is between 2.2 and 2.5 years, while basic mobiles have an average lifetime of three years and up.
Gartner sees the biggest remaining opportunity for smartphone growth in India, noting that sales of feature phones — aka dumbphones — accounted for a majority (61 per cent) of total mobile device sales last year, leaving plenty of scope for upgrades as smartphones continue to become more affordable.
It is estimating 139 million smartphones will be sold in India this year, growing 29.5 per cent year-over-year. It notes the average selling price of mobiles in the country remains below $70, and it expects smartphones priced under $120 to continue to contribute around half of overall smartphones sales there this year. Apple’s hope that it can save its flailing business numbers by selling into India show the complete lack of understanding of how that market is working. It is tending to favor small local smartphone makers like Intex.
China is going to offer Apple no help either Gartner is expecting “little growth” in the region in the next five years. IT says it is “saturated yet highly competitive” market. Smartphones represented 95 per cent of total mobile phones sales last year.
Gartner analyst Annette Zimmerman said that “non-traditional” vendors in China could do well and thinks that by 2018 at least one such phone maker will be among the top five smartphone brands in the country.
“Chinese internet companies are increasingly investing in mobile device hardware development, platforms and distribution as they aim to grow their user bases and increase user loyalty and engagement,” she said.
The Sub-Saharan African region is also couched as an attractive region for smartphone vendors, with smartphone sales only overtaking mobile phones sales there for the first time last year. Nokia brand licensee and newly formed smartphone OEM HMD will want to take note, given it has paid for the right to build feature phones (and smartphones) bearing the previously iconic Nokia brand name.
The U.S. International Trade Commission has launched an investigation into seven smartphone makers on charges of patent infringement, which could lead to a ban on the sale of certain phones imported and sold by these vendors in the country.
The commission said it is looking into devices from a group of mainly Asian companies, including Lenovo and its Motorola subsidiary, Samsung Electronics, ZTE, Sony, LG Electronics, HTC and BlackBerry.
The complaint was filed against these companies by Creative Technology of Singapore and its U.S. subsidiary Creative Labs of Milpitas, California, on March 24.
Known for its Sound Blaster sound cards for PC audio, Creative has charged these companies with infringing U.S. Patent No. 6,928,433 entitled “Automatic Hierarchical Categorization of Music by Metadata,” which claims various methods for accessing different types of data, such as music or video files, on a portable media player.
Apple is said to be one of the licensees of the patent, and in 2006, Apple paid Creative $100 million for a nonexclusive license, according to Creative’s complaint. Creative had earlier that year asked the ITC to block the sale of Apple’s iPod devices for allegedly infringing the same patent.
Among the alleged infringing products named in the complaint are Samsung’s Galaxy S6 smartphone and other Samsung phones containing either the Google Play Music app (version 5.9.l854R.l904527), or the Samsung Music app (version 6.0.1508051449), which were installed on the phones prior to import.
The products at issue in the investigation are smartphones, “with the capability of playing stored media files selected by a user from a hierarchical display,” the ITC said in a statement Thursday.
If it finds infringement after investigation, the ITC can place a ban on the sale of products by these vendors, under a limited exclusion order requested by the complainant. The ITC cautioned that the launch of an investigation did not imply a decision on the merits of the case. It will set a target date for completion of the investigation within 45 days of its institution.
Nintendo has confirmed that its next-gen console, the Nintendo NX, will launch in March 2017.
Causing many to screw up their Christmas lists, the company told shareholders during its earnings call on Tuesday: “For our dedicated video game platform business, Nintendo is currently developing a gaming platform codenamed ‘NX’ with a brand-new concept. NX will be launched in March 2017 globally.”
Probably also causing some to cancel a trip to Los Angeles, Nintendo said that the NX will not be demonstrated at the upcoming E3 video games conference in June, despite speculation that Sony plans to show off its so-called PlayStation 4.5 console.
Nintendo’s keynote at the games show will focus instead on the next Legend of Zelda game, which will launch simultaneously on the Wii U and Nintendo NX in 2017. Rumour has it that Smash Bros 4, Splatoon and Super Mario Maker are all set to receive an NX makeover too.
A launch is now less than a year away, but we still don’t know much about the Nintendo NX, which Nintendo confirmed this week is just a codename for the incoming console. However, rumour claims that it will arrive as a hybrid between a home console and a mobile games console to sit alongside the New Nintendo 3DS.
Nintendo president and CEO Tatsumi Kimishima reiterated in December last year that the company is “not building the next version of Wii or Wii U” and that the device will be something “unique and different”.
News of the Nintendo NX’s launch date no doubt came as the firm looked to play down the fact that its profits fell 61 per cent year over year. Worked, didn’t it?
The National Football League has selected Twitter as its exclusive global partner for streaming its Thursday night games during the 2016 regular season, both parties announced, a deal that could help the social media site expand its user base.
CBS Corp and Comcast Corp unit NBC, which won the broadcast rights in February, could also gain more viewers via Twitter, TV executives said.
Twitter Inc spokesman Brian Poliakoff declined to disclose the financial terms, or elaborate on how the games would be streamed. But technology news website Re/code, citing people familiar with the bidding process, reported that Twitter paid less than $10 million for the streaming rights.
The deal comes as sports fans are increasingly relying on the Internet to watch video at the expense of traditional cable and satellite connections. Livestreaming the games would give Twitter a new avenue to attract users as it tries to catch up with rival social networks like Facebook Inc, which has over a billion users.
The NFL partnership helps cement Twitter’s position as a destination for live video, said Tom Richardson, president of consulting firm Convergence Sports & Media.
“I don’t think it’s going to cannibalize viewership at all,” CBS Sports Chair Sean McManus said. “I don’t see people turning off their televisions and watching the game on Twitter.”
“The fact that our national commercials are running on the Twitter feed is a big benefit,” he said.
An NBC spokesman declined to comment.
Twitter will livestream 10 games for free to the more than 800 million people who use its service, as well as non-registered users.
Last year, it was loose lips in the supply chain for console manufacture, now it’s seemingly loose lips within Nintendo’s own marketing department, but there’s a common thread to every leak or rumour that spreads about the platform holder these days – they all point to a late 2016 launch for the company’s next console platform, codenamed NX.
The numbers Nintendo was said to be targeting for NX that were floated around from sources at overseas parts suppliers checked out pretty well. Similarly, the more recent marketing leak has lent significant credibility by being on the money regarding the now-announced Pokemon Sun and Moon titles. It’s all still in the realm of rumour – a dedicated faker could have done the maths required to arrive at plausible manufacturing numbers for NX, just as we did when we dissected the claims; someone with knowledge of a soon-to-be-announced Pokemon game could have tacked on fake information about an upcoming console in order to troll gaming forums. It happens.
Besides, in the skeptics’ corner, there are some solid reasons to question the 2016 launch window. For a start, there’s the simple fact that we know nothing about NX. It’s already March, and all we know is a codename and some vague, hand-waving stuff about the console bridging home and handheld paradigms. That’s pretty much it. Assuming a November launch, that would leave Nintendo with a grand total of eight months to unveil, explain, market and promote an entire new console launch – even assuming that they were to start that process tomorrow. It’s not impossible, of course; that eight months would encompass E3, GamesCom, Tokyo Games Show and as many Nintendo Direct shows as the company wanted, so getting the message out there is plausible… But bear in mind that this is also the year in which Nintendo’s mobile gaming partnership with DeNA will bear its first fruit, and while I maintain that the company views that as a support to its console business, not a replacement for it, it’s reasonable to be dubious of the idea that it would willingly completely overshadow the marketing of those games with a blitz of promotion for a new console.
There’s also the simple matter of history to consider. Nintendo has never, as far as I can recall or uncover, announced a console in the same calendar year that it released it. The pattern for its systems’ pre-launch promotion has been fairly consistent since the turn of the millennium; a slow build-up from the reveal of hardware to further details and the introduction of software, with a launch often as much as 18 months after the unveiling. Compressing that into eight months (or seven, or six) might be possible, but it would be totally outside the pattern of what Nintendo has done up until now with its consoles.
On the other hand, Nintendo is in a pretty unique situation right now. It has a new CEO who, although he’s essentially pledged to follow the path Iwata set the company upon, will also have his own way of doing things and his own vision for the firm. It also has an absolute albatross in the form of the Wii U, which has not been saved from commercial disaster even by successful, acclaimed games like Splatoon and Super Mario Maker – and, almost uniquely for the company, it faces giving the Wii U an early bath at the same time that its all-conquering handheld platform, the 3DS (which has done very well despite not matching sales of its predecessor, the DS) is also slowing down significantly. Nintendo does face entering 2016 without a particularly strong handheld or home console platform and only the 3DS’ installed base to keep things ticking over – which might be a significant impetus to speed things up on the introduction of something new.
Let’s think in more details about the factors that would be involved in launching the NX by the end of the year. It would absolutely have benefits; perhaps the most clear one is that it would prevent 2016 being a “wasted” holiday season for Nintendo. The flatlining Wii U and the rapidly slowing 3DS suggest that without the introduction of a new platform this year, holiday 2016 will likely be Nintendo’s worst for many years – arguably not something Kimishima will want on his report card so early in his tenure. A rapid build-up and launch for the NX would give the company a blow-out Christmas, since Nintendo platforms pretty much always do well at launch – and of course, this would also place NX in the window to receive a prettied-up port of the upcoming Zelda title for Wii U at the same time as the Wii U version itself launches, a mirror of the very successful strategy the company used for Twilight Princess across the GameCube and Wii a couple of hardware generations ago. Even if the game isn’t totally exclusive to NX, a Zelda game at launch would be an enormous boon for the new platform and a great way to ensure a solid holiday season.
It’s definitely a short period of time, though, and the window in which Nintendo can announce the console is probably quite limited. It’s highly unlikely that it would wait for E3 to unveil its plans; much as turning up with a brand new console to the show would be a very effective way to “win” E3, it’s probably more sensible to unveil some aspects of the device, at least, in a Nintendo event well ahead of the show. Indeed, if NX details aren’t revealed to some degree either this month or next, I suspect a 2016 launch can be said to be entirely off the cards – although I wouldn’t actually put money on that, since if we’re talking about reducing the pre-launch promotion window from 18 months to 8 or 7 months, why on earth not make it six, or five, or four?
In fact, it might be more instructive to think about that window in terms of how other devices manage it. Consoles are actually quite unusual in having a lengthy, protracted period where everyone is talking about them, everyone is showing off software for them, but nobody can buy them. Compare that to smartphones or tablets, which are generally available to buy within a matter of days or weeks after they’re first unveiled. That short lead time doesn’t seem to stop Apple’s devoted fans from camping out to buy a new iPhone; perhaps a short lead time for a console might actually spur fans to excitement, rather than denying the new system a build-up? If the NX console is really a complex concept that it takes people a while to get their head around, then perhaps that will be problematic – you don’t want to launch a device that hardly anyone actually understands yet – but if it’s merely an interesting twist on the familiar, then perhaps a short, intense few months of promotion is actually a marketing advantage over a year or more of drawn-out arguments regarding the merits of a still-vapourware device.
Whatever Nintendo actually plans for the NX, it will represent a very dramatic choice for the company. A 2016 launch will be an aggressive strategy that overturns its previous approach to console launches and suggests dramatic reforms under Kimishima’s guidance. Pushing its launch out into next year, though, will leave the company facing a bleak holiday season with an ailing, albeit still popular, handheld device and a home console that’s almost totally dead in the water – and even with the prospect of a Zelda swan song on the Wii U, that will be a bitter pill to swallow for Nintendo. The company is, in some regards, painted into a corner – no matter what it does next, it’ll require a very different Nintendo difference.
AT&T Inc announced that it will debut three new ways to stream DIRECTV content on wireless and wired devices from smartphones to PCs, targeted at price-conscious U.S. viewers who shun pricey cable and satellite subscriptions.
The Dallas, Texas-based wireless provider said it expects to launch the three offerings in the fourth quarter of 2016. They can be streamed on apps through any Internet or mobile connection, it added.
The first option DIRECTV Now will offer all content in its current packages, including add-ons, live and on-demand video. DIRECTV Mobile, for smartphone users only, will include premium content and youth-oriented videos created by Otter Media, an AT&T joint venture with an investment group headed by media entrepreneur Peter Chernin. Free, ad-supported DIRECTV Preview will offer content from “AT&T’s AUDIENCE Network,” which has exclusive original videos, in addition to Otter Media offerings.
Prices will be announced at a later date, a company spokesman said.
AT&T acquired DIRECTV for $48.5 billion last year, making it the world’s No. 1 pay-TV operator with 45 million video subscribers, including Mexico and Latin America, at the end of 2015. It is betting big on video to tap new revenue as the U.S. wireless market stagnates.
The online video market is competitive, with players such as Netflix Inc and new entrants like Dish Network Corp and Verizon Communications Inc rushing to service viewers who increasingly consume video online than through pay-TV services.
AT&T’s CEO Randall Stephenson hinted in December that his company was planning content packages that can be viewed on a smaller screen, or to a single screen in a home that’s not set-top box-driven.
AT&T executives have said the company has already acquired mobile streaming rights, by leveraging DirecTV’s relationships and agreements with content providers, for various premium cable channels such as Showtime. It will deploy 40 megahertz of contiguous airwaves to relay content over its network.
“We intend to offer customers a quality pay-TV experience, including top channels, sports and more, with increased value and flexibility of pure online streaming and no need for home installation,” John Stankey, CEO, AT&T Entertainment Group, said in a statement.
Nintendo’s finances took a dip in the company’s third quarter report for FY 2015 – sales stayed relatively stable with just 3.9 per cent shrinkage to 427.7 billion Yen ($3.5bn), but profits dropped by 32 per cent year-on-year to 40.5 billion Yen ($336m).
Although the bottom line failed to excite, plenty of familiar faces performed well for the publisher’s software arm, as well as a few new names. Top seller was Child friendly Wii U shooter Splatoon, shifting over four million units. Super Mario maker wasn’t far behind on 3.34 million, whilst Animal Crossing Happy Home Designer reached 2.93 million. Collectively the 3DS family sold 5.88 million units of hardware and 38.87 million games. The Wii U totalled 3.06 million consoles and 22.62 million pieces of software. 20.50 million Amiibo figures were sold, and approximately 21.50 million Amiibo cards.
Those eagerly awaiting news of either the new NX system or the company’s first smartphone game will be disappointed – neither was mentioned in the company’s forward looking statements. Instead, the publisher focused on relatively known quantities.
“For Nintendo 3DS, we will globally release a special edition hardware pre-installed with Pokémon title(s) from the original Pokémon series on February 27 which marks the 20th year since the original Pokémon series release,2 read the accompanying statement.
“Furthermore, Mario & Sonic at the Rio 2016 Olympic Games and key titles from third-party publishers are scheduled for release. For Wii U, we will strive to maintain the attention level of Splatoon and Super Mario Maker, which are continuing to show steady sales, while introducing new titles such as The Legend of Zelda: Twilight Princess HD. Meanwhile, for Amiibo, we will continue to expand the product lineup in order to maintain momentum. At the same time, we will aim to further expand sales by offering new gaming experiences with the use of Amiibo. In addition, the first application for smart devices, Miitomo, is scheduled for release.”
The company has maintained its full year target of 35 billion Yen in profit.
The Nintendo NX may surpass the Wii U’s lifetime installed base in its first year on shelves. According to a Digi-Times report, Nintendo’s upstream component suppliers are expecting to provide the company with enough hardware to ship 10-12 million units in 2016.
That would mark a rebound after the Wii U, which through September had put up lifetime sales of a little under 11 million. However, Nintendo may be expecting even more from its next platform; in July, Digi-Times reported that the company was planning to ship 20 million Nintendo NX systems globally in 2016.
The report states that Foxconn Electronics will manufacture the NX, with mass production beginning at the end of the first quarter. Foxconn Technology, Macronix, Pixart Imaging, Coxon Precise Industrial, Nishoku Technology, Delta Technology, Lingsen Precision Industries and Jentech are expected to be supplying components for the NX.
Japan’s Nintendo Co announced that it is delaying the much-awaited launch of its videogame service for smartphones by a few months to March 2016, disappointing gaming fans as well as investors who drove its shares down by more than 10 percent.
Under a strategy announced by its previous chief executive, who died of cancer earlier this year, Nintendo had said it would introduce its first smartphone games by the end of 2015. Fans and investors had hoped it would include its best-selling videogame franchise Mario in the first lineup.
Chief Executive Tatsumi Kimishima, a former banker who succeeded Satoru Iwata, said the delay would help Nintendo concentrate on selling its existing consoles and game software during the year-end holiday season.
“The year-end is traditionally our peak season for sales,” told a packed news conference, when asked about the delay. “This way, we’d be able to introduce our new applications after the holiday season is over.”
He avoided commenting on whether Mario would come to smartphones, instead introducing a new social networking service-style application called “Miitomo” which would be available in March.
The news knocked Nintendo’s shares down more than 10 percent in morning trade, erasing earlier gains. DeNA Co, Nintendo’s mobile gaming partner, fell as much as 19 percent.
Kimishima must avoid cannibalizing traditional console sales at the same time as pushing aggressively into the rapidly growing mobile gaming segment. On Wednesday, Nintendo reported a weaker-than-expected operating profit for the July-September quarter on tepid sales of game software.
“This (move into mobile gaming) is a sea change for them and there may be some growing pains like this along the way,” said Gavin Parry, managing director of Hong Kong-based brokerage Parry International Trade.
Former CEO Iwata, credited with broadening the appeal of videogames, died of cancer in July just months after deciding to enter mobile gaming despite years of resisting investor calls for such a move.
Verizon Communications Inc launched a trial version of its new mobile video service on Tuesday, looking to prove that telecom players can compete with mobile ad industry titans Google Inc and Facebook Inc.
Verizon said its service, a mobile app dubbed “go90”, will be offered initially to a select set of its own customers, with advertisements from well-known brands, which it declined to name, but without newly acquired ad technology from AOL, the media company it bought in June for $4.4 billion.
Verizon is targeting young viewers or millennials with about 100 to 200 hours of exclusive content from online video networks such as AwesomenessTV and Machinima, said Brian Angiolet, Verizon’s senior vice president, consumer products. The free service will drive revenue from data usage and targeted advertising.
Verizon’s best chance to prove its advertising potential rests on technology from AOL, which has built tools to deliver targeted Web and mobile ads. That, combined with Verizon’s customer data, should improve targeting, analysts say.
The AOL technology is in the process of being integrated with Verizon’s video service, and targeted advertising tools will be available over time, Angiolet said.
The service will launch officially to all users as soon as later this month, a Verizon spokesman said.
Companies from Netflix Inc to Dish Network Corp already offer Web-based video services through subscriptions, but the No. 1 U.S. wireless company’s ad-supported, short-form video model is unusual.
Go90 pits Verizon against Internet advertising industry heavyweights Google and Facebook, and advertisers will take a “wait and see” approach to determine how many viewers Verizon captures, telecom industry consultant Tim Farrar said.
“Pretty much without exception telecom operators have not been successful as third parties in exploiting the Internet access service, whether it’s video or anything else,” Farrar said. “What percentage of people’s app viewing is going to be over a Verizon app versus YouTube or Facebook…That’s the biggest uncertainty.”
Verizon’s rival AT&T Inc has said it has mobile video services targeting young viewers in the works. Smaller rivals Sprint Corp and T-Mobile US Inc have said they are watching their competitors’ efforts closely.
Studios like Disney, which has made blockbuster films like “Frozen” and Marvel’s “Guardians of the Galaxy,” have been attempting to steer movie fans towards digital purchases as sales of DVDs decline.
Walt Disney Studios added that it would launch the app on video streaming-device maker Roku Inc and Google Inc’s Android TV on Sept. 15, coinciding with the DVD release of “Cinderella.”
The collection in Disney Movies Anywhere can be accessed through its new app for theMicrosoft Xbox 360 and for Amazon’s Fire tablets, Fire TV and Fire TV Stick.
The media company launched Disney Movies Anywhere in February 2014 with Apple Inc’s iTunes, and in November partnered with the Google Play online store and Walmart Stores Inc’s online store Vudu.
The two new additions come on the same day as its early digital release of Marvel’s “Avengers: Age of Ultron.”