Tablet owners spend big bucks online according to a new report. In fact, the new study published by Adobe Digital Marketing Insights suggests that tablet owners spend 50% more per purchase than smartphone owners on retail purchases, and over 20% more than PC users. The study found that smartphone owners spent about $80 per purchase on average but tablet owners spent an average of $123. Laptop/PC users spent $102 per retail purchase on average in 2011. Tablet owners are three times more likely to make a purchase on a retail website than a smartphone user is, too. Adobe Digital Marketing Insights gathered its data from more than 150 U.S. retailers last year and more than 16.2 billion transactions made online.

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Following a period of peace after weeks of cyberattacks launched against various Sony-run online networks, Sony has confirmed that hackers are once again targeting the company’s digital properties. The electronics giant said on Wednesday that it discovered a “large number” of sign-in attempts on its PlayStation Network, Sony Online Entertainment and Sony Entertainment Network between October 7th and the 10th. According to Sony, approximately 93,000 accounts were compromised when valid log-in details were verified during what appears to have been a brute force attack. The company says it has locked the affected accounts and that credit card data tied to the compromised accounts was not at risk.

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Apple’s online store is down. We wonder why…

A new report from research firm IHS suggests that Apple’s iTunes share of “consumer spending for movie electronic sell-through (EST) and Internet video on demand (iVOD)” grew during the first half of 2011, the first time since 2009, despite an increase in competition from Walmart and Amazon. iTunes had a 65.8% market share during the first half of this year, up from 64.9% during the first half of 2010. It also had the largest increase in revenue growth among its competitors. “Much of iTunes’ success can be traced to the rising usage of Apple’s AirPlay system, which allows wireless video streaming to consumer electronic devices including televisions,” said IHS research director Arash Amel. “This has expanded the reach of iTunes to new platforms, boosting sales of movies from the system.” Microsoft’s Zune Video Marketplace maintained the second largest share of consumer spending in the market with a 16.2% share, down from 18.5% during the first half of 2010. Walmart’s Vudu service saw the largest share increase among market leaders: it jumped from a 1% share during the first half of last year to a 5.3% share during the first half of 2011. Sony’s PlayStation Store now has a 4.4% share, down from 8.2%, and Amazon’s share grew slightly from to 4% from 4.2%. Read on for the full report.

iTunes Gains Share in Online Movies in First Half of 2011

Reversing its previous declines in market share, iTunes in the first half of 2010 managed to pad its leadership position in the U.S. online movie market, according to the new IHS Screen Digest Media Research from information and analysis provider IHS (NYSE: IHS).

iTunes’ share of U.S. consumer spending for movie electronic sell-through (EST) and Internet video on demand (iVOD) rose to 65.8 percent in the first half of 2011, up from 64.9 percent for  the same period in 2010. The expansion contrasts with the first half of 2010 when the share held by Apple Inc.’s iTunes declined by 11.9 points year-on-year. In fact, the first half of 2011 marked the first increase in share for iTunes since two years ago in 2009.

Notably, iTunes experienced the largest revenue increase growth among all online movie providers during the first half.

“iTunes’ expansion of its market lead represents a remarkable achievement in light of intensifying competition from a slew of aggressive rivals,” said Arash Amel, research director, digital media, for IHS. “Much of iTunes’ success can be traced to the rising usage of Apple’s AirPlay system, which allows wireless video streaming to consumer electronic devices including televisions. This has expanded the reach of iTunes to new platforms, boosting sales of movies from the system.”

Other factors that enhanced iTunes’ share included the growing installed base of the iPad and price promotions.

Vudu’s Market Share Voodoo
Along with Apple’s market share advance, the other big success story among the major online movie stores in the first half was Wal-Mart’s Vudu. Vudu’s share of EST and iVOD movie revenue rose to 5.3 percent in the first half of 2011, up from 1.0 percent during the same time in 2010. This allowed Vudu to rise to the No. 3 position earlier this year, up from fifth place.  “Just as IHS predicted in its February release, Vudu has emerged as a major market rival to established players like Apple and Sony,” Amel said. “Vudu’s gains were driven by several factors, including its shrewd device strategy, a good customer experience, a compelling user interface and its $1/$2 rental pricing system.”

Microsoft and Sony Face Challenges
The No. 2 online movie store, Microsoft’s Zune Video Marketplace, lost market share in the first half, declining to 16.2 percent, down from 18.5 percent during the same period in 2010. The company had enjoyed a market share surge during the 2010 holiday season courtesy of the strong sales of the Kinect, a motion-sensing system for the Xbox 360. Kinect helped improve sales at that time of the Xbox, which can access movies on the Zune Video Marketplace. However, the impact of the surge since has dwindled, causing Zune’s share to decline.

For Sony, its PlayStation Store accounted for 4.4 percent of iVOD and EST movie share in the first half, down from 8.2 percent in 2010. This caused the PlayStation Store to drop to the fourth position, down from third place, which it had long occupied.

“The PlayStation Store fell out of the Top 3 rankings chiefly because Vudu cannibalized its market share,” Amel said. “Furthermore, the global security breach that shut down Sony’s online gaming operations during a major portion of the first half had a deleterious impact on the PlayStation Store’s business.”

In the case of Amazon, a boost in revenue to reach 4.2 percent in the first half, up from 4.0 percent in 2010, was not enough to keep it in the No. 4 rank, as the surge from Vudu pushed the online retailer down to fifth place. The company in the first half was engaged in a shift in its business to streaming video on demand (SVOD) and Amazon Prime.

Online Movie Business Focuses on EST
Together, the U.S. iVOD and EST business in the first half of 2011 amounted to $229 million, with EST accounting for $118 million and $111 million for iVOD. For the full year of 2011, IHS predicts the market will rise to $487 million, with EST representing $247 million, and iVOD taking up $240 million.

“The new-release on-demand business is all about iVOD,” Amel said. “In the current economic climate, consumers are more interested in accessing movies than in owning them. Because of this, growth in EST has virtually stopped. Whatever small EST growth that is happening is coming from aggressive sales on iTunes, as well as discounting across major services.”

Sprint has never been known to follow convention. While other carriers are milking heavy data users for as much as possible, for example, Sprint is standing strong and maintaining its unlimited data plans for as long as possible. Another example: Sprint announced the BlackBerry Bold 9930 last week, stating that it would charge customers $249.99 on contract for the device. The nation’s No. 3 carrier made the device available on Sunday as promised, but the phone is actually priced lower online than Sprint announced; just $199.99 will score you RIM’s latest flagship smartphone from Sprint’s online shop. Oddly, the same $200 can also land you an old Bold 9650 if you have an aversion to touchscreens and gorgeous hardware. Sprint’s Torch 9850 launched at the promised $149.99, but we can’t imagine opting for it over the Bold 9930 for just $50 more. Interested parties may want to hit the read link quickly in case Sprint has a change of heart.

Thanks, CJ

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Nearly two and a half months after its networks were breached by the hacker group LulzSec, Sony will finish restoring its PlayStation Network later this week when it reactivates the service in Japan. According to Bloomberg, Sony has been working with the FBI to identify the LulzSec hackers who were responsible for the attack on its San Diego data centers, during which the hackers obtained account information for more than 100 million PlayStation Network users. Reportedly, LulzSec rented and used servers from Amazon.com’s cloud service to facilitate the attack. Sony CEO Howard Stringer apologized after the attacks and offered a year of identity theft protection to those affected by the breach, as well as a free month of access to PSN.

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The firm behind PlayOn, the popular online video streaming service, announced its new PlayLater service. PlayLater allows users to record streaming video from nearly any website — including popular cable programs such shows from TBS, CBS, Adult Swim, and more — for watching at a later time. Its offline cachine features means you can store the video for watching even when a connection isn’t available, too. It’s exactly like a DVR, which means you can choose what you want the software to record, and simply forget about it until later. PlayLater is supported on PCs, and recorded content can also be watched on mobile devices such as the iPhone or iPad. Early beta users will receive a free one-month trial of PlayLater, after which it will cost $4.99 per month or $49.99 per year. Hit the jump for the full announcement, as well as a chance to be one of the first 5,000 users in the early beta.

Introducing PlayLater, the DVR for online video. Now you can record and watch your favorite shows anytime, anywhere, even offline!

Today, we are kicking off the closed beta for PlayLater, the world’s first DVR for online video. PlayLater is a revolutionary new technology that lets you record your favorite TV shows, movies, and sports events from nearly any website and watch them later, even offline.

If you travel or commute and don’t always have an Internet connection, PlayLater is the perfect way to keep up with your favorite flix and shows. We don’t care if you’re on a plane, train or automobile*, you can watch any shows you recorded with PlayLater.

PlayLater brings the functionality and convenience of your standard DVR to online videos. Tell PlayLater which shows you want to record, and just like your home DVR, PlayLater will record it and let you watch when it’s convenient for you. You can queue up a bunch of shows or movies to record, so you never run out of new content to watch.

Record Any Channel Available With PlayOn

PlayLater lets you record almost any video available online, from nearly any website. Queue up the latest Hollywood blockbuster, find your favorite music video from the 80s, or record the pilot episode of Always Sunny in Philadelphia for tomorrow’s train ride into work.

Watch Your Videos On Any Device

Of course you can watch your PlayLater recorded videos anytime you want on your PC, but if your PC is connected to your TV, you can easily watch your recorded content on your Television too. When used with our flagship product, PlayOn, you can watch your recorded content on your iPad, iPhone or other mobile device.

PlayLater works with any Internet connected PC and costs $4.99 per month or $49.99 per year. Beta users will receive a full one-month free trial. To be one of the first 5,000 users in the closed beta and get PlayLater free for a month, download here http://www.playlater.tv

We are passionate about new technology and online video. As more people look online for video content, they will demand more flexibility in their viewing, including a DVR. With PlayLater, we are ready to deliver the ability for people to watch anytime, anywhere.

Apple on Tuesday began selling unlocked iPhone 4 handsets in the U.S. a day earlier than expected. The smartphone is now available in 16GB for $649 or 32GB for $749, and both models come in black or white. Other manufacturers, most notably Nokia and Sony, have sold unlocked smartphones in the U.S. for quite some time. Neither company has seen much success with unlocked handsets thus far, though Apple’s approach is somewhat different. Apple’s primary sales channels in the U.S. are undoubtedly carriers, and the availability of unlocked smartphones simply addresses the needs of a small secondary market that is willing to pay for phones outright rather than spreading the cost of their devices over two years. As an added benefit, buyers of unlocked iPhones will be able to switch freely between GSM carriers, though some surgery may be involved with carriers that do not offer micro-SIM cards. With just a few months between the start of the summer and the expected launch of Apple’s fifth-generation iPhone, the availability of unlocked devices will allow also users to purchase iPhones now and then make a subsidized purchase in September, or whenever Apple finally does release the iPhone 5.

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Verizon Wireless announced a new partnership with Payfone on Monday that will soon allow its customers using phones, tablets, and PCs to make online purchases easier. Once the partnership’s new service is deployed, customers will be able to make more secure purchases online and charge them to their Verizon Wireless bill or use other standard forms of payment. “Our relationship with Payfone complements the part of the mobile payments equation we’re already working on with our Isis joint venture,” said Greg Haller, marketing vice president, Verizon Wireless. “We approach the mobile payments arena from a customer’s perspective. As we move forward, the most important goals will be security, privacy and simplicity. Through our relationship with Payfone, we will be able to quickly offer value to our customers by offering them greater choice and a simple, safe and secure purchasing experience when shopping online from their smartphones, tablets and PCs.” Hit the jump for the full press release.

VERIZON WIRELESS AND PAYFONE POWER NEW MOBILE PAYMENT SOLUTION

New Service Will Allow Verizon Wireless Customers to Make Mobile Payments for Online Purchases from Smartphones, Tablets and PCs

BASKING RIDGE, N.J., and NEW YORK – Verizon Wireless and Payfone, a leading mobile payment processing service, today announced the companies are working together to bring a new mobile payment system to Verizon Wireless customers.  When available, the service will allow Verizon Wireless customers to make online purchases from their smartphones, tablets and PCs using numerous payment methods, including charging purchases to their monthly wireless statements or using traditional payment methods through financial institution partners.

“Our relationship with Payfone complements the part of the mobile payments equation we’re already working on with our Isis joint venture,” said Greg Haller, marketing vice president, Verizon Wireless.  “We approach the mobile payments arena from a customer’s perspective.  As we move forward, the most important goals will be security, privacy and simplicity.  Through our relationship with Payfone, we will be able to quickly offer value to our customers by offering them greater choice and a simple, safe and secure purchasing experience when shopping online from their smartphones, tablets and PCs.”

With Payfone’s unique approach to mobile payments, operators and merchants are able to complete transactions securely and accurately.  Payfone also provides other features important to consumers and merchants, including intelligent routing, pre-authorization and authentication designed to reduce the friction and fraud that affect sales conversion and revenue yield for merchants and operators.

“We are pleased to be working with Verizon Wireless to deliver a new level of convenience, security and flexibility to their customers and to boost revenue and conversion for operators, merchants and publishers,” states Rodger Desai, chief executive officer, Payfone. “This underscores Verizon Wireless’ dedication to cutting-edge innovation as it stays ahead of the mobile payments curve.”

Microsoft is currently offering Windows Phone handsets from three major U.S. carriers for just a penny each. Through the company’s online Microsoft Store, users can now purchase either Verizon Wireless’ HTC Trophy, Sprint’s HTC Arrive or T-Mobile’s HTC HD7 for just $0.01 alongside a 2-year contract with a smartphone data plan. While the HD7 is the oldest of the bunch, it’s still a wonderfully capable supersized smartphone that we enjoyed very much when we reviewed it last November. The Trophy is Verizon’s first Windows Phone, featuring HD video capture and SRS WOW HD sound, and the HTC Arrive is easily our favorite Windows Phone to date. Microsoft’s penny offers are only good through July 2nd, 2011.

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Sony announced on Wednesday that the final piece of its PlayStation Network, the PlayStation Store, is now back online after Sony’s networks were taken down due to a massive security breach. Sony also noted that it has outfitted PlayStation Plus store with new game trials, games, downloadable content, free avatars, and bigger discounts. The company’s “Welcome Back Offer,” which will provide two free games to Sony users as well as 30 days of PlayStation Plus, is in the final stages of testing and will also be available soon.

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Sony has announced that it’s starting to bring its services back online after a major security breach leaked the credit card data and personal information of over a hundred million users. The first step for Sony’s PlayStation Network members is a firmware update that’s been issued for the PlayStation 3. After applying the patch, PS3 users will be prompted to change their PSN passwords. “Please note that these services will take a bit of time to be turned on and rolled out to the whole country,” the company said in a blog post Saturday. “The process has begun and some states are being turned on now, so please be patient as we reach your city and state.”

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Toys R’ Us may begin selling the iPad 2 next month according to a report from enthusiast site ModMyi. The site’s source provided a leaked screen shot that shows employee training software as well as a secondary product knowledge sheet. Apple’s latest tablet has been wildly popular since its launch on March 11th so this is good news for consumers trying to get their hands on a unit. As of late March, Apple began replenishing the stock in some retail stores, and its online store says that customers still have to wait 2-3 weeks for new orders to ship. The iPad 2 is also available from AT&T, Best Buy, RadioShack, Target, Verizon Wireless and Walmart, among other retailers. Toys R’ Us has not yet officially announced plans to offer the iPad 2.

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The fate of Blockbuster is now up for auction. On Monday Blockbuster’s next owner, and future, will be decided. According to Reuters, it’s possible that a new owner could close the video rental chain, liquidate it entirely, or continue operations in a bid to compete with the likes of Netflix and the growing number of online media streaming services. Reportedly, Dish Network Corp. and Carl Icahn have already placed bids for the company, and SK Telecom is also interested. Monarch Alternative Capital LP opened the bidding at $290 million in February when Blockbuster put itself up for sale, and bids last week needed to be less than $296 million to qualify. It’s unclear how much Dish or Icahn bid on Blockbuster, but Dish Network reportedly has plans to continue building Blockbuster’s online movie offering should it win the auction. After a new owner is decided on Monday, it will have to be approved by bankruptcy judge on April 7th before the deal can move forward. Blockbuster filed for bankruptcy in September 2010.

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Research In Motion’s first QNX-powered device — the BlackBerry PlayBook — will be hitting a plethora of retailers beginning next month, and Office Depot has officially thrown its proverbial hat into the ring. Via a press release, the retailer has announced that beginning April 19th customers can purchase the 16GB, 32GB, and 64GB PlayBooks for $499, $599, and $699 respectively. “Office Depot provides customers with the most innovative lineup of products that will help them take care of business, and the BlackBerry PlayBook is certainly one of those game-changing products,” said Randy Wick, the company’s Vice President of Merchandising. “There has been a lot of buzz and excitement for the BlackBerry PlayBook to hit the market, and we are thrilled to be one of the first retailers to offer this professional-grade tablet.” RIM’s first tablet venture will be available at Office Depot’s retail stores and online at officedepot.com. The full press release is after the break.

Office Depot to Offer the New BlackBerry PlayBook Tablet In-Store and Online Starting April 19

Customers Can Pre-Order the Playbook Today by Visiting OfficeDepot.com

BOCA RATON, Fla.–(BUSINESS WIRE)–Office Depot (NYSE: ODP), celebrating 25 years as a leading global provider of office supplies and services, today announced that the Company will offer the highly anticipated BlackBerry® PlayBook™ tablet at nationwide Office Depot retail store locations and online at www.officedepot.com beginning April 19, 2011.

“There has been a lot of buzz and excitement for the BlackBerry PlayBook to hit the market, and we are thrilled to be one of the first retailers to offer this professional-grade tablet.”
Customers can secure a PlayBook in advance of the launch through a pre-order starting today at www.officedepot.com.

The BlackBerry PlayBook is the world’s first professional-grade tablet. It delivers industry leading performance in an ultra-portable design. In addition to offering true multitasking, HD multimedia, advanced security features, and out-of-the-box enterprise support, the BlackBerry PlayBook enables an uncompromised web browsing experience with support for Adobe® Flash® Player 10.1, allowing customers to enjoy all the websites, videos, games, and just about any other content that is out there.

“Office Depot provides customers with the most innovative lineup of products that will help them take care of business, and the BlackBerry PlayBook is certainly one of those game-changing products,” said Randy Wick, Vice President of Merchandising for Office Depot. “There has been a lot of buzz and excitement for the BlackBerry PlayBook to hit the market, and we are thrilled to be one of the first retailers to offer this professional-grade tablet.”

The BlackBerry PlayBook with Wi-Fi® is available in three models: 16GB ($499), 32GB ($599), and 64GB ($699).

BlackBerry PlayBook specifications include the following:

• 7″1024×600 WSVGA capacitive LCD touch screen
• Ultra-portable at less than a pound and less than one-half inch thick: 0.9 lbs (425g) and 5.1” x 7.6” x 0.4” (130mm x 194mm x 10mm)
• 1 GHz dual-core processor
• BlackBerry® Tablet OS with support for symmetric multiprocessing
• MP3, AAC and WMA audio playback
• Support for high resolution video playback (H.264, MPEG4, WMV)
• 1080p HDMI out
• Dual 1080p HD cameras for video conferencing and video capture
• 1 GB RAM memory
• Up to 64 GB internal storage (16, 32 and 64 GB models)
• GPS, Orientation Sensor (Accelerometer), 6-Axis Motion Sensor (Gyroscope), Digital Compass (Magnetometer)
• Stereo speakers and stereo microphones
• Wi-Fi® (802.11 a/b/g/n) connectivity
• Bluetooth® 2.1+EDR support

To learn more about the products and services available at Office Depot, please visit your local Office Depot retail store location or www.officedepot.com. To become a fan of Office Depot on Facebook and receive exclusive content, offers and more, please visit www.facebook.com/officedepot. To follow Office Depot on Twitter, please visit www.twitter.com/officedepot.