VIDEO INSIDER: Netflix Nearly Matches HBO Revenue - Amazon Video Ads --  Flipagram's Rise

Welcome to our new Video Insider newsletter, a morning email with the top news and analysis on the digital video industry, produced by BI Intelligence.


NETFLIX MAKES NEARLY AS MUCH REVENUE AS HBO, HBO IS STILL MORE PROFITABLE: Netflix generated nearly as much revenue as HBO, at $US1.2 and $US1.3 billion respectively, according to both companies’ fourth quarter earning results. HBO still bests Netflix in terms of profits, yielding $US413 million in operating income for the quarter, compared to Netflix’s $US82.3 million. The earning results were the first time HBO’s financial position was broken out from its parent company, Time Warner Cable. “HBO remains in a league of its own,” said Time Warner CEO Jeff Bewkes. Netflix success has had little impact on HBO. “We don’t see any discernible effect on HBO’s subscriber numbers or pricing because of Netflix or other internet video subscription services,” said Bewkes. (Variety, Netflix, Time Warner)

AMAZON PARTNERS WITH FREEWHEEL, SIGNALS MOVE INTO VIDEO AD BUSINESS: Amazon just signed a deal with FreeWheel, a company that specialises in online video advertising. FreeWheel already provides its ad-serving technology to ABC, ESPN, and NBCUniversal. The two companies began working together during the fourth quarter, with FreeWheel serving up ads before video game trailers that appear in Amazon’s search results. Amazon plans to expand this program by placing video ads before movie trailers and product demos. The e-commerce giant is also working with FreeWheel to include video ads before TV shows on the Kindle Fire. (Re/code)

VERIZON DENIES THROTTLING ALLEGATIONS: Less than a month after a Federal court ruled that the FCC did not have the authority to enforce net neutrality regulations, Verizon is facing allegations that it is throttling Internet traffic from sites hosted on Amazon Web Services, including Netflix. The throttling allegations originate from David Raphael, a software engineer for a cloud-based security firm. After running several download tests, Raphael determined that Verizon was likely reducing the speed of traffic from Amazon Web Services. Raphael then contacted Verizon support and was told that the company was “limiting bandwidth to cloud providers.” Verizon is now denying the allegations, saying “We treat all traffic equally, and that has not changed,” in a statement to the Washington Post. (Washington Post)

WELCOME, VIDEO INSIDERS: The Video Insider newsletter covers the day’s most important topics in digital video, as well as news exclusives of interest to industry insiders. We look forward to the newsletter becoming an important part of your morning routine.

Subscribe to BI Intelligence and get it every morning in your inbox. Please email BI Intelligence research analyst [email protected] or BI Intelligence director [email protected] with news and tips.

FLIPAGRAM RAISING $US50+ MILLION, VALUED AT $US300 MILLION: Flipagram, an app that turns pictures from mobile phone cameras, Facebook, and Instagram into short video stories, is raising $US50 to $US60 million in funding at a valuation of $US300 million. Cheerful, Flipagram’s parent company is reportedly in talks with several major venture capital firms, including Index Ventures and Sequoia Capital. As of December, the free app attracted more than 10 million users per month. (TechCrunch, Wall Street Journal)

FACEBOOK LOOKS BACK: To celebrate its 10th birthday, Facebook is providing every user with a personalised video that highlights their activity since joining the social network. There are some reports that Facebook may even allow users to edit their “Look Back” videos in the near future. (TechCrunch, Facebook)

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