Facebook Pushing Forward Into Social TV
April 2011
In recent months, Facebook has been adding more social TV functionality via its partnership with Warner Bros., which launched a streaming movie rental of the 2008 hit “The Dark Knight” on its social media Website. After an initial launch in early March 2011 with the latest Batman movie, Warner Bros. is upping the ante by adding more movies that already have large followings on Facebook.
Later in 2011, Warner Bros. will expand its online movie distribution on Facebook, adding five additional titles of movies that have large followings on Facebook. Users in the U.S. can also use Facebook Credits to rent movies right from each movie’s official Facebook page. Movies included in this expanded test are “Harry Potter and the Sorcerer’s Stone,” “Harry Potter and the Chamber of Secrets,” “Inception,” “Life as We Know It” and “Yogi Bear.”
According to Facebook, the fan pages for “Harry Potter” and “Inception” are already two of the most popular and active communities on its site. Warner Bros. has been accelerating movie distribution in the last few years, such as by allowing same day/date releases of streaming movies and DVD releases. Facebook users will also be able to interact with friends and update their statuses while watching streamed movies.
The full article is available in the April 2011 IPTV Bulletin by MRG, Inc. To subscribe, go to: www.mrgco.com/bulletin.html
Level 3 Communications Acquiring Global Crossing Limited
April 2011
U.S. ISP Level 3 Communications announced it was acquiring Telecom Vendor Global Crossing Limited for about US$1.9 billion, in an all-stock transaction. The combined company will have fiber optic networks on three continents, and serve customers in over 50 countries. The new company will have 2010 revenues of US$6.26 billion.
| Analyst Comment: Level 3 operates its own CDN business (via its 2006 acquisition of CDN Provider Savvis) so the addition of Global Crossing can help the company to expand in this area, as well as have more efficient cloud-services and long haul Internet delivery. Level 3 owns fiber optic lines in the U.S. and Europe, while Global Crossing has a number of undersea cables around the world. The combined company can better take advantage of the growth of cloud-based and CDN services using their newly combined global networks.
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Study Shows 43% of U.S. Consumers Use Social Media to Comment/Read About a TV Program
April 2011
The Harris Poll on Social Media and Television, a survey conducted by New York-based market research firm Harris Interactive, found that 43% of U.S. consumers have utilized social media to comment, post, watch or read something about a television show or program. Most of the activity happens after watching a TV show (33%), while 17% said they had done so while watching TV. According to the survey results, younger consumers are more likely to use Social TV (59% of those between 18-34) compared to those 55 and older (just 28%). Three quarters of adults (76%) who engage with TV programs or shows online say that they are seeking more information, while 67% say it’s a source of additional entertainment. Only 51% said that they do so because they want to engage with other viewers.
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Analyst Comment: If this Social TV trend persists, it should help boost the use of recommendation engines in 2011-2012.
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