Showbiz Sandbox 235: When Apple Can’t Beats Them, It Buys Them

May 12, 2014

As rumors began to circulate that Apple was purchasing Beats Electronics for $3.2 billion everyone from music industry executives to stock market analysts all asked the same simple question – why? The lucrative deal makes perfect sense from Beats perspective, but what does Apple see in the high-end headphone manufacturer that made them spend so much money to acquire the company.

Speculation has centered on two possible reasons, both of which are probably accurate. The first hypothesis is that since Apple already heavily promotes Beats products through their retail stores, they may as well make them a part of the family and keep all the profits. The second theory is that Apple is hoping Beats streaming subscription service can help them with their own streaming music offerings.

With digital music sales first plateauing and now declining, Apple may be predicting that more consumers are wanting to stream their music rather than purchase it. We discuss Apple’s big purchase and provide in-depth analysis on what it means for the company and the state of the music business.

Of course, we also cover the week’s top entertainment news stories including the renewal of “American Idol” for a 14th season, NBC pays billions for the rights to broadcast the Olympics over the next 20 years and Comedy Central finds a replacement for Stephen Colbert.

Read more

Play

Showbiz Sandbox 202: Holy Overreaction, Batman!

August 26, 2013

You would have thought the world was coming to an end last week when Warner Bros. announced the casting of Ben Affleck as Batman in the upcoming blockbuster which will pair the Dark Knight with Superman. Fans of the Caped Crusader weren’t the only ones to weigh in on the casting choice. Just about everyone on earth seemed to have an opinion (most of them negative) on whether Affleck should put on the Batsuit.

No matter who plays Batman, you can be sure the character will resurface in more films. After all, seven of the top ten grossing movies of the summer were sequels or remakes, helping the 2013 domestic box office stay on track with last year.

Much the moviegoers have gotten used to reboots and sequels, television audiences have grown accustom to having their cable providers blackout networks over licensing disputes just as Time Warner Cable is doing presently with CBS and its affiliated networks. Industry critics and politicians have suggested a la carte cable may help stem such actions, though we’ll explain why it may prove to be a horrible idea.

Of course we also cover the week’s top entertainment news including the launch of iTunes Radio, the return of “Duck Dynasty” and the death of drive in movie theaters.

Read more

Play

Showbiz Sandbox 185: HitBliss Bets You’ll Watch Ads To Get Free Movies

March 11, 2013

HitBliss is a new streaming video service that enables users to earn credit toward popular movies and television shows simply by watching advertising. The catch is all the targeted ads are shown up-front, and viewers must be paying attention or they won’t get the credits needed to purchase or rent videos.

Sharon Peyer is the co-founder of HitBliss and spent four years helping launch the company. In this interview she explains how the service originated, how it works and what the future of HitBliss might look like. Peyer believes consumers are actually willing to watch ads so long as the messages are relevant and they can get something out of it.

It’s no secret that streaming media services are all the rage these days, yet it remains to be seen whether they can be profitable too. Pandora’s latest earnings (or lack thereof) beat analysts expectations sending its stock price soaring. Unfortunately, the royalties they pay for music might start rising, along with the number of competitors like YouTube and Apple looking to enter the market.

Of course we also cover the week’s top entertainment headlines including Pink Flloyd’s 40 year presence in the music charts, Rupert Murdoch’s plans for a television sports network and the Daily Show’s Jon Stewart takes a crack at making a movie.

Read more

Play