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Articles of the Day

Posted in Digital Media, News with tags , , , , , , , , , , , , , , , , on July 15, 2008 by Dave Liu

Yahoo Spells Out Latest Rejection; Icahn Goes Back To Proxy Fight, Says Yahoo Misled Investors — In a new slideshow filed with the SEC, Yahoo has put out the exact details of the fresh offer from Microsoft and Icahn, with an explanation of why it was inadequate. The basic details: Microsoft would pay $1 billion upfront for Yahoo’s search assets. That’s the same as before, and Yahoo says it would be too complex to separate these assets, and beyond that, the money is taxable. Microsoft and Yahoo would enter into an exclusive search ad agreement guaranteed for the next five years. It would pay Yahoo at least $2.3 billion. TAC (traffic acquisition costs) for the first three years would be 85 percent, dropping to 70 percent for the two years following. Yahoo still says this is below its own revenue estimates and that TAC is below market. After the first five years are up, Microsoft could renew for another five years at 70 percent TAC if it’s willing to guarantee at least $3 billion in annual revenue. Yahoo has the right to renew for five more years, but with a guarantee of just $1.6 billion.

NBC And Online Olympic Ad Sales: 85 Percent Sold Out — NBC Universal says advertising inventory for the roughly 2,200 hours of online Olympics coverage next month is about 85 percent sold out, according to tells Mediaweek. Although many popular events—like swimming (Gold Medal finals), volleyball, boxing, track and field and gymnastics —won’t be streamed live, Zach Chapman, director, digital sales for NBC Sports and Olympics, is convinced that office workers will be glued to NBCOlympics.com, its dedicated site for showing the Beijing games, which begins on August 8th.

Netflix Without the DVD: Now Integrated Within XBox; Also NBCU Shows on XBox — After its Roku box integration, which received critical acclaim for ease of use, Netflix (NSDQ: NFLX) is continuing on its digital service integration within others: it has just announced a deal with Microsoft, where Xbox 360 will be able to stream thousands (well 10K, compared to its DVD collection of over 100K) of movies/videos onto their TV sets…The service will be free to Xbox Live Gold members who are also Netflix subscribers. Xbox had its own movie collection for streaming and download, but not as many. This surely gives it another boost on its fierce competition with Sony’s PS3. XBox has about 12 million users, so this also give Netflix a big user base, though of course with some duplications. Then of course there’s Apple TV, which competes with these combo services. As an aside, Netflix CEO Reed Hastings is a member of Microsoft’s board, so that helps.

Online Ad Prices Fall For Third Consecutive Month — The average price of online advertising inventory dipped slightly between May and June, marking the third consecutive month that online ad prices have fallen. While June’s decline was modest — just a penny per ad — the downward trend signals that the online medium may be suffering from the same economic malaise as the overall media economy. The latest data from PubMatic’s AdPrice Index shows that overall online ad pricing made a less than 1% change, moving from $0.37 to $0.36, but there were a few surprises. Small Web sites (those with less than 1 million page views per month) in June dropped a significant $0.32 from May, landing at an average CPM of $0.81, down from $1.13. Medium Web sites (those with 1 million to 100 million page views per month), however, made a moderate $0.13 jump from $0.33 in May to $0.46 in June. Large Web sites (those with 100 million-plus page views per moth) also rose, but only slightly, moving from May’s $0.21 to June’s $0.23.

AdTech Strikes Deal With Gannett For Online Ad Service — Significantly increasing its U.S. presence, AOL’s AdTech has won the right to manage online advertising for the Gannett Co.’s entire network of Web assets. The rollout ultimately will include all of Gannett’s local newspaper Web sites, the digital properties for its 19 local broadcast markets, and USAToday.com, along with various targeted-media properties, such as Gannett’s network of mom’s sites. Apart from Gannett’s properties, AdTech is presently delivering about 15 billion monthly ad impressions stateside, and 85 billion worldwide.

Glam Media Launches Daily Email Platform — E-publisher and ad network Glam Media on Monday announced the launch of Glam Today, a daily email newsletter and platform. Glam Today, a part of Glam Publisher Media Services, curates and distills the more than 5,000 articles created daily by its network of some 500 sites, including Bag Snob, Simplyrecipes.com, Shake Your Beauty, Glam.com, to name a few.