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BT planning to write off 2.6 percent stake in troubled OnLive
BT thinks that it's "highly likely" it'll let its 2.6 percent stake in OnLive go to the wall. It told TechRadar that it was keeping a "close eye" on the gaming venture which is restructuring in the face of spiraling debt costs. The telecoms provider has promised that its customers will be able to access the service (for as long as it exists, we guess) and that the investment is a small enough figure that it won't be worrying too much about its balance sheet.
OnLive officially announces asset acquisition, notes that its newly formed company will keep OnLive name
Amid the rumors, sourced reports and statements, it was easy to lose track of the facts surrounding OnLive's recent restructuring efforts. No surprise then, that the newly formed outfit has issued a press release and FAQ (after the break) in hopes will clear things up. First and foremost, the firm reiterates that the streaming game service will continue operating uninterrupted, and that the "newly formed company" that acquired the firm's assets will continue to do business under the OnLive name. The announcement also mentions the Assignment for the Benefit of Creditors (ABC) process OnLive used to settle its debts, noting that "an affiliate" of Lauder Partners, a technology investment firm, was the new OnLive's first investor. Finally, the firm laments the necessity of laying off its staff, stating that "neither OnLive, Inc. shares nor OnLive staff could transfer under this type of transaction," confirming that nearly half of the previous staff had been offered positions at the new company, and optimistically projecting future hires culled from both previous and new employees. The new OnLive calls the asset acquisition "a heartbreaking transition for everyone involved," but looks optimistically to a future of "transforming the OnLive vision into reality." Check out OnLive's full, official word on the matter below.
OnLive's alternative to bankruptcy: just what is an Assignment for the Benefit of Creditors?
The news is out. OnLive, Inc. is no more, having cut the bulk of its workforce loose and used an Assignment for the Benefit of Creditors (ABC) to absolve itself of massive debts incurred by the expansion of its services without a corresponding increase in its customer base. But what is this alternative to filing for bankruptcy, and why did OnLive choose this particular legal reset button to start over? We spoke with an expert on the matter, Martin Pichinson, co-founder and managing member of Sherwood Partners (which does two or three ABCs in a given week), to help educate us on this little-known tool used by companies irrevocably in the red.
OnLive hits reset after being dragged down by expensive servers, confirms service will continue
OnLive has finally issued an official statement after rumors of mass layoffs first leaked out earlier today, confirming that its assets have been acquired into a newly-formed company with what it claims is "substantial" financial backing. The big news for users is that the OnLive Game and Desktop services will remain operational and continue to be supported. The release also claims a "large percentage" of OnLive staff is being hired into the new company with plans to hire more over time, while PR informs us the leadership team remains intact. Check the words straight from the source after the break. We've heard from some of the people present for the meeting where the new plan was revealed today, confirming the company is going through a process known as Assignment for the Benefit of Creditors (ABC). A faster alternative to bankruptcy that doesn't involve the courts, it allows OnLive to deal with some of the issues it was facing, most notably an oversupply of servers for the number of users it had signed up. The ABC process allows OnLive to be unshackled from the expensive server contracts and bring in a new source of venture capital. Oh and that other major cost, the employees? Not all of the information is known yet, but beyond the loss of jobs, it turns out the stock they owned was in a company that no longer exists. We're hearing their benefits will end after August, however there are offers of contracts to answer questions about important topics like "where things are," in exchange for special form stock in the new venture. Update: Joystiq has more information from a former employee, who estimated the average number of peak concurrent OnLive users at around 1,800 or so, and the amount of retained staff in the range of 20 percent. One other tidbit? The source expects OnLive to go after recent Sony acquisition Gaikai for infringement of a game streaming patent, so stay tuned.
Source: OnLive undergoing buyout in wake of dire financials, laying off 'at least 50 percent' of staff
After a lot of back and forth from the rumor mill and official OnLive channels, we now have what we believe to be a far clearer view of precisely what is happening right now at OnLive headquarters in Palo Alto. We've spoken with a (now former) employee of the gaming service who ran down today's events for us. According to the account, a meeting was held at OnLive's offices at 10AM this morning, wherein the company's CEO announced a massive staff layoff -- at least 50 percent of the staff, according to our source's numbers. The layoffs come as part of across the board cuts to the company, and all those out of a job will have their key cards deactivated as of 4PM local time today. The source was understandably baffled by the abruptness of the news, along with the added blow that no severance will be offered and stock holdings are essentially worth nothing. The move apparently comes as OnLive is being purchased by an unknown party. Those being kept on have reportedly received offer letters from the new company. Why the sudden move? The source believes it may have something to do with the company's massive operating costs, which we're told are around $5 million a month. Certainly those concerns line up with a story dug up by Kotaku highlighting the company's plans to file for Assignment for the Benefit of Creditors as a result of the company's troubled financial situation. We're still gathering information as to the nature of the buyout. Update: According to our source, the writing wasn't on the wall at the company per se, but OnLive had reportedly been entertaining acquisition offers ahead of the news from companies including HP. Update 2: Our source has offered up some additional information on the matter, putting the average concurrent user number for the service at 1,100 to 1,500, peaking at around 1,800 on a given day -- not exceptional by any means in the face of reported $5 million a month operating costs. The number of layoffs, meanwhile, may well be greater than originally suggested, with our source putting the number of employees staying on board at around 10 to 20 percent.
Verizon's Viewdini appears on iOS: works on any network, hunts video from 11 sources
The Viewdini streaming metasearch service launched a few months ago for Verizon's 4G LTE-laden Android hardware, and now it's finally available on iDevices. While the droid app is exclusive to those with a 4G plan on Big Red's network, anything running iOS 4.3 and up can now make use of Viewdini, independently of carrier ties. As the screenshots above show, you're also good to go on 3G, although you better watch that data allowance to avoid any nasty surprises. Interestingly, the iOS version currently only digs through the catalogues of 11 content providers compared with 18 on the Android version, but you're still getting access to various big names like ABC, Crackle, Hulu Plus, Netflix and Verizon's own video service. More providers should be added to the list soon, and if you'd like to give Viewdini a try, it's available at the App Store now.
WatchESPN Android app update finally brings access for Comcast subscribers
While the WatchESPN app for iOS got an update that opened up mobile streams for Comcast cable customers back in May, it's taken until now for Android devices to enjoy the same access. Along with unspecified bug fixes, version 1.6.0 worked on the Nexus 7 and Galaxy S II we tried it on, although we did need to log out and log in again with our account credentials to get the streams working the first time. The video streams we were able to pull in didn't seem to be quite as high res as those accessed on the iPad however, although all those with the right combination of services and hardware can grab the free app at the source link below and try it out themselves.
Google Play starts selling movies, TV shows (single episode or full season) and magazines today
The Android Market became Google Play to focus on how it pushes media, and now it's adding a few new options. On stage at Google I/O 2012 the company just announced it's adding support for the purchase of movies, as well as TV shows by episode or by season, and even magazines all available today. That's in addition to the existing apps, movie rentals, music and books. Oh, and look, Google just introduced a new tablet that you can use to access all of that content. We'll keep an eye out for an exact list of all the new media partners, although mentioned on stage were magazines including Hearst, Conde Nast and Meredith long with TV networks Disney / ABC, NBC Universal, Sony Pictures and Paramount . Check out our Google I/O live blog for even more details as they're announced, and look after the break for video introductions. Check out our full coverage of Google I/O 2012's opening keynote at our event hub!
Cartoon Network's iPhone and iPad app adds a live TV feed, for authenticated customers
Cartoon Network announced plans to join the TV Everywhere party with a live internet feed of its channel (for authenticated cable / satellite customers) during upfronts and now the updated v1.8 app has arrived on iPhones and iPads. The feed can also be streamed with Flash on the channel's website (we tried it on an Android 2.3 device and logged in but couldn't get it to play), although the only differences we noticed were that the website feed was slightly ahead of our cable box and iOS was a few seconds behind, but with slightly higher picture quality. All in all it's very similar to the WatchESPN experience (which ABC expanded upon last week with Watch Disney, Watch Disney Jr and Watch DisneyXD apps, though the full experience is only currently available to Comcast customers), and should satisfy all those who have been missing the Toonami experience when they're away from home. Take a peek after the break for a preview trailer, shot of the login screen and press release.
ConnecTV officially launches, gives you more ways to bug your buddies
We went hands-on with the ConnecTV app while it was in open beta earlier this year. Now the social TV app is officially, uh, official -- launching nationwide with backing from television's old guard. Although ConnecTV doesn't double as a remote a la Dijit or BuddyTV, it does play nice with Facebook and Twitter, allowing users to socially rave about Alton Brown's cherry couscous pudding or razz followers of a rival team while watching a game on TV. ConnecTV says the app also syncs with content from Apple TV, Boxee, Hulu, Netflix and Roku from the past seven days. Do note that "nationwide" currently means integrated content from 85 local stations across the US' top 40 TV markets. ConnecTV also plans to expand that number to 215 stations. The app is available for free for PC browsers and the Apple iPad, with iPhone and Android smartphone and tablet versions set for release within the next 45 days. For more details, feel free to dip your toes into the celebratory PR after the break.
Broadcast TV networks, Dish Network file lawsuits over new Auto Hop ad skipping feature
Dish Network shocked us just a couple of weeks ago by upgrading its new Hopper DVRs with "Auto Hop" ad skipping that targeted prime time programming on broadcast TV captured via its PrimeTime Anytime feature, and predictably, the networks aren't happy. After several executives took shots at the service during upfronts for the new fall programming in the past few weeks, Fox has filed suit in US District Court, while Dish Network responded with its own request for a court order specifying that it does not infringe on the TV network's copyrights. Just in the last few minutes, the New York Times reports NBC (Update: Add CBS to the list as well, THR has copies of the complaints from Dish and Fox.) has filed a lawsuit against Dish Network as well, and it likely won't be the last one to do so. ReplayTV folded under similar legal pressure, but clearly Dish Network thinks it has a workable solution and now it's going to be up to the courts to decide who wins.
WatchESPN finally streams to Comcast customers, but not on Android
The short list of TV and internet providers that support ESPN's TV Everywhere play, WatchESPN, just grew by one with the addition of Comcast to a list that already included Time Warner, Bright House and Verizon. Part of a deal reached back in January, ESPN has managed to tie its live streaming service in with Comcast's Xfinity TV protocols, similar to the adjustments made by HBO to open up HBO Go streaming on the Xbox 360. One downside however is that for the moment Comcast customer access is restricted to the website (XfinityTV.com access is coming soon) and iPad / iPhone apps (an update is required first). The Android app that launched a year ago is, for the moment, not supported, although access there is promised "in the coming months." As we heard in January this just the beginning, as similar Watch services will be rolling out for Disney Channel, DisneyXD and Disney Junior as part of the mouse company's TV+ program. For now those live feeds of ESPN, ESPN2, ESPNU and ESPN3.com (Buzzer Beater and Goal Line are available in their respective seasons) will have to do however, as the channels and cable services try to add more features and access to keep subscribers happy, or at least still paying, whether they're at home or away.
New York Times sees higher circulation numbers, digital paywall smiles knowingly
Given how aggressively The New York Times pushes its digital packages -- we've long since dropped our subscription yet are still bombarded with offers -- you'd hope the paper was at least seeing some results. Well, never fear: it is. A report by the Audit Bureau of Circulations (ABC) found that the Times has seen a healthy increase in circulation, with the Sunday edition selling 2,003,247 copies (up 50 percent from last year) and the weekday editions racking in an average of 1,586,757 (up 73 percent). The ABC attributes much of this gain to the NYT's addition of digital access to paper subscriptions, and we're sure the paywall, which limits non-subscribers to just ten free articles a month, has something to do with it, too.
Factory workers claim Foxconn hid underage employees prior to inspection
No doubt you watched Nightline's special edition about Shenzhen's Foxconn factory where workers assemble iPhones, iPads and Macs. If you missed it, you can watch it online at ABC's website (US only). As we noted last night, the documentary showed a rather clean Foxconn factory filled with young, Chinese workers. Missing from the show, says Debby Sze Wan Chan of Students & Scholars Against Corporate Misbehavior (SACOM), were the underage workers who Foxconn hid during the Fair Labor Association (FLA) inspection. Speaking to AppleInsider, Chan said "All underage workers, between 16-17 years old, were not assigned any overtime work and some of them were even sent to other departments." She claims two workers in the Zhenghou plant told her Foxconn was "prepared for the inspection." A similar sentiment was expressed by FLA president Auret van Heerden who said he expects Foxconn to put on a show. Despite Foxconn's careful presentation, van Heerden asserts the FLA's bottom-up interviews could uncover any issues in the factory. It's worthy to note that Apple is a member of the FLA, paid US$250,000 to join the group and funded this latest round of inspections. Though Apple works with the FLA, Chan claims she has received a cold shoulder from the company. No one within Apple has responded to her requests; supposedly the company even refused to receive reports, documentaries and petition cards from her when she traveled to Apple's California headquarters. A security guard who escorted her out of the building at One Infinite Loop took the paperwork and promised to deliver the items to someone in charge, but she has not heard back from Apple. Speaking at a recent Goldman Sachs technology conference, Apple CEO Tim Cook told the audience that Apple is working to address underage labor, safety issues, and excessive overtime at its contract factories. Chan, though, doubts Apple has "any commitments to do so."
ABC's iFactory report shows life at Foxconn
Update: You can now watch this full episode on ABC.com. (US only, of course) I just finished watching the ABC Nightline report cleverly named iFactory: Inside Apple. ABC's Bill Weir was given unprecedented access to Foxconn, where iPhones, iPads and Macs are assembled. If you've been following this saga for a while, there wasn't that much new here. It was good to see ABC provide some context as to why people go to work at Foxconn, and the report provided some background on working conditions at the plant. Weir starts off touching upon the Apple mythos, then goes straight into how our iDevices are made. For example, it takes 141 steps to make an iPhone. Something that surprised him: Apple products are largely made by hand. Weir points to a tiny iPad camera module, noting that with two 12-hour shifts each day Foxconn can crank out 300,000 of those in a day. According to ABC it takes 5 days and over 300 hands to assemble an iPad, but they aren't made by robots, they are made by people. Mostly young people. "No one looked over 30," observed Weir. In fact, Weir was there on a day when thousands of young people lined up to apply for work at Foxconn. What was remarkable was that the only requirement seemed to be a valid national ID card. But, as Weir points out again and again, the demand for Apple products is so high that Foxconn can't keep up. They hire en masse and train people for days before putting them to work. Workers at Foxconn tend to be quite young, around 18, and they will often come from impoverished rural areas for the work. This actually has a positive benefit to the people left behind in the villages who told ABC that they felt life was better without the young people around. "More of everything," noted one villager. I have to imagine the generation gap was at play here somewhat, as family ties would still find some people missing their grandkids. But the opportunity at Foxconn is what causes workers to flock to the factories. As for working conditions, I saw very little that was shocking. The only exception was the nets, placed around dorms and other buildings with high floors, which are designed to make potential suicide victims think twice before jumping. Those you don't see many places. Of course, the suicides at Foxconn are partly what drew so much attention to the factory. Louis Woo, a Foxconn executive, explained how Tim Cook flew to China to help organize counseling for people to prevent further suicides. Otherwise, the Foxconn areas shown in the report looked far nicer than any American factory I've been in (and I've been in a few). People complained about a lot of the same stuff you find anywhere -- pay, food, hours. But then, workers do work a 12 hour shift. And they stay in dorms with seven other people in a room that makes my college dorm look grandiose by comparison. Still, this isn't unusual in a country with the single largest population on the planet by far. Weir did show footage of workers napping at their stations, saying that if one ate their meal fast enough, they could catch a quick nap. Foxconn workers have two one-hour breaks to eat, but the executive who led Weir around the factory explained the naps after meals are, in fact, a Chinese tradition. Foxconn offers workers what looked like a very pleasant Internet cafe, recreational facilities (a soccer field was shown) and some education, like English classes. ABC gave no percentages on how many workers use these amenities, but it was pointed out that most people are there to simply work. Then there were the inspections by the Fair Labor Association. The head of that organization explained that he expected Foxconn to put on a show, but that they will conduct "bottom up" interviews to ensure working conditions are decent. I won't spoil the rest, but ABC fairly points out that several other companies contract Foxconn, and Apple takes heat because they are so visible. While the report didn't have any huge revelations (they were denied an interview with Tim Cook), I think it painted a fair picture of where our Apple gear comes from. Looking at the Apple lines at Foxconn, I feel a little better knowing they are probably enjoying some of the best working conditions in China.
ConnecTV social companion beta launches for iPad, PC and Mac (hands-on)
The old guard's attempt at a social TV companion just got real with the launch of ConnecTV in open beta for iPad, PC and Mac -- smartphones and Android tablet versions are coming soon. The idea is you'll load up this app while watching TV and find a whole new way to discover details of your favorite content while at the same time share with your friends. The app uses a mic to detect what you're watching just like IntoNow and links up with both Facebook or Twitter (it'll also work on its own). Overall we were underwhelmed and quickly realizing that the other startups are way ahead in both release date and functionality. For starters, there are plenty of channels missing and not a single channel number. You can't even search for your favorite shows or channels. But even when it did manage to figure out what we were watching, we felt like we were being forced fed useless data like trivia and ads rather than having useful information like actors or players names at our finger tips. There's no doubt in our mind that the app was designed more to make us discover certain content rather than discover shows based on our actual tastes. Then again, this is the first version out of the gate, and there's no reason to believe this isn't just the first step of many on the way to ConnecTV's vision of how we should enjoy our favorite shows.
Lovefilm, Disney UK deal brings ABC content across the pond
If you're living across the pond and hankering for ABC's content, it's en route. In what could be considered a response to Netflix's expansion to the UK market, Lovefilm has joined forces with Disney UK to offer members on-demand streaming access to ABC Studios' content. Available titles include Castle, Lost, Desperate Housewives, Happy Endings, Grey's Anatomy and the Ghost Whisperer, with all episodes available after their first run in the UK market. Compatible streamers include the PC, PlayStation 3, Xbox 360, iPad, smart TV's and Blu-ray players and the service itself starts at £4.99 ($7.65) per month. Still no news as to when the Camo Snuggie will make its European debut.
Amazon, Netflix ink licensing deals with ABC, add new content for you to munch on
It was a pretty busy day for the Disney-ABC Television Group yesterday, as the company announced a new licensing deal with Amazon, while renewing its pre-existing agreement with Netflix. The Amazon deal will allow Amazon Prime members to access all prior seasons of Grey's Anatomy, every episode of Lost, and all previous seasons of The Secret Life of the American Teenager, among other series. Amazon expects to add a total of some 13,000 titles to Prime Instant Video by "early next year," and just in time for the holiday season (as well as the release of the Kindle Fire). The renewal of Netflix's deal, meanwhile, ensures that the company will continue to offer episodes of shows like Private Practice, Brothers and Sisters, and Ugly Betty, as well as new additions, including Switched at Birth, Kick Buttowski and Alias. Basically, though, it's just more of the same. But at a time when Netflix is losing customers in the wake of its price hike and Qwikster debacle, maybe stability isn't such a bad thing. Surf past the break for a pair of dueling PRs.
Google remains committed to TV business, expects more partners soon
Wondering what Mountain View has in store for Google TV -- that half-baked content platform available on only a small handful of devices? Well, it's not going away, apparently, and may even cross the Atlantic into Europe next year. Google Chairman Eric Schmidt is currently making waves in Scotland, giving Edinburgh International Television Festival attendees a rather vague overview of what the next generation of Google TV may look like. Schmidt said that the service has yet to take off because it's currently integrated with (a rather limited selection of) TVs, which we don't tend to upgrade more than once or twice a decade. He added that additional hardware and content partners will be coming soon, though, and didn't deny that Google TV could end up on Motorola cable boxes -- an obvious move, given the company's recent acquisition announcement. With widespread implementation and many more content partners, Google TV could definitely be a hit, but with ABC, NBC and CBS still unwilling to come onboard, the struggling service likely has a very rocky road ahead before it can be deemed a success.
Some Assembly Required: Issue #4 -- Making music in LotRO
Music to my ears. The Sound of Music. It ain't over 'til the fat lady (er, Dwarf) sings. Time to face the music. Pay the piper. There is no way around it -- music is such an integral part of our lives and culture that there is almost no way to take a step without its influence showing in some part of our lives, be it an idiom, a movie, a popular catchphrase, or even just a tune stuck in our heads that we cannot escape. Music is so woven into the thread of our beings that it is surprising that more music cannot be found in the world of MMOs. Luckily for us, one world has embraced this connection to music and made it an involved part of the game. Unlike any other games, Lord of the Rings Online has moved beyond just adding a background score and a few canned clips of music to the game. In fact, it has introduced an entire system allowing players to not only play a variety of instruments in the game but compose original pieces and play together in bands as well. The musically inclined can either play live or convert popular music into ABC files, and the not-so-inclined can use said files files to play right along with their friends. When it comes to harnessing creativity, the music system in LotRO tops the charts. Want to see how you too can strike up the band and show off your creative prowess with the lute, the theorbo, the clarinet, or even the cowbell? Tune in past the cut for Some Assembly Required's look at the music industry in LotRO.
