Microsoft (MSFT) Adds Netflix (NFLX), LinkedIn Into Hotmail

In an effort to further boost the stickiness of its Hotmail e-mail service, Microsoft (NASDAQ:MSFT) is allowing the embedding of technology from popular sites like LinkedIn and Netflix (NASDAQ:NFLX).

Microsoft's partnership with the companies has been dubbed "Active Views," which empowers users to view or make acquisitions without moving out of your email window.

This is an expansion of the Active Views service last year which targeted sites like Flickr, YouTube and Hulu.

The latest version allows a larger number of business types to use the service, especially those that communicate a lot through emails to their customers.

Microsoft said, “In traditional email with just a text link, the percentage of people clicking through is less than 10%. With Active Views, customers are clicking on the video control in about 25% of all email messages with a video."

The software company closed Tuesday at $25.49, up $0.08, or 0.31 percent.

Apple (NASDAQ:AAPL) Gets 30 Percent Cut of iTune Content Sales

Apple (NASDAQ:AAPL) introduced their new content subscription service for their iTunes store, and anyone wanting to sell content via the service will pay Apple a nifty 30 percent for the privilege.

It isn't a closed service, as customers can use the website of businesses to order content, or order through an Apple app. For one they get the full fee, and from Apple they get 70 percent.

Where this will leave companies like Hulu and Netflix (NASDAQ:NFLX) remains to be seen, but it's sure to put a lot of pressure on them over time, especially the publicly-traded Netflix, which is migrating to a digital content delivery business model.

In the past, Apple has allowed companies to build applications for devices where they didn't take a cut of the revenue; those days are evidently now over.

Apple CEO Steve Jobs said, "When Apple brings a new subscriber to the app, Apple earns a 30 percent share; when the publisher brings an existing or new subscriber to the app, the publisher keeps 100 percent and Apple earns nothing."

Even so, Apple says those wanting to sell subscriptions through Apple must offer terms that are at least equal with what is offered via subscriptions offered via iTunes. Apple also insists the option to buy subscriptions within iTunes must also be offered.

"We believe that this innovative subscription service will provide publishers with a brand new opportunity to expand digital access to their content onto the iPad, iPod touch and iPhone, delighting both new and existing subscribers," added Jobs.

In order to protect the privacy of individuals, subscribers are offered the option of whether or not to share information with companies they subscribe with. Apple says they won't pass that on to third parties, although Apple will retain their hold on it.

Apple closed Tuesday at $359.90, gaining $0.72, or 0.20 percent. Netflix closed at $240.79, losing $6.76, or 2.73 percent.

Comcast (Nasdaq:CMCSA) Wins FCC Approval to Acquire NBC Universal (NYSE:GE)

Comcast Corp. (Nasdaq:CMCSA) announced today they've cleared one more hurdle in their quest to acquire majority interest in NBC Universal from General Electric (NYSE:GE).

Two unidentified agency officials said the FCC voted 4-1 for the deal to be allowed to go forward. The deal still has to be cleared with the Justice Department in order to win final approval to go ahead.

Along with the NBC television network, Comcast will also get with the deal cable channels, broadcast stations and a 4,000 plus library of movies. NBC also holds a stake in the increasingly popular Hulu Internet video services, which Comcast would inherit with the deal.

Concerns over whether or not Comcast will release NBC shows on the Internet, along with the idea Comcast could hold back their high-speed customers from having access to content outside of Comcast's control has weighed on the deal.

Time Warner Cable's (NYSE:TWC) "TV Essentials" Doesn't Cut it Says Barclays (NYSE:BCS)

Time Warner Cable (NYSE:TWC) developed their "TV Essentials" service to compete against DBS for those buying based on pricing, but Barclays (NYSE:BCS) doesn't see it being the game-changer TWC was hoping for.

Barclays said, "TV Essentials Is Unlikely to Appeal To Cord-Cutters; Target Is Low-Cost DBS Plans, Especially From DISH Network (Nasdaq:DISH). We don't believe that the TV Essentials package will appeal to cord-cutters, or those just looking to eliminate the cost of sports programming:

(a) it's still well above the cost of Netflix (Nasdaq:NFLX) or Hulu,
(b) a customer who takes it would lose any bundled discount for data service (necessary for over the top),

(c) TV Essentials doesn't allow for DVR or HD service, and

(d) the package doesn't include major non-sports channels like TNT."

Time Warner Cable closed Friday at $62.69, dropping $0.06, or 0.10 percent.

Netflix (NASDAQ:NFLX) Should Hold Against Hulu Competition

While a lot has been made of the launch of Hulu Plus recently as it relates to the effect it could have on (NASDAQ:NFLX), overall, it should only nibble around the edges of the company, and not have much, if any, impact on their bottom line.

Barclays (NYSE:BCS) said, "The official launch of Hulu Plus yesterday at a lower price point of $7.99 and with a more aggressive subscriber acquisition program around free trials and referrals represents some increased competition for NFLX at the margin, but we do not believe it is a substitute for NFLX in its current format...Hulu has also broadened its distribution through a range of CE devices including the PS3 (NYSE:SNE), Samsung & Sony TVs/Blu-ray players, Apple's iPad (Nasdaq:AAPL), iPhone, and iTouch, & the Xbox 360 (Nasdaq:MSFT) early next year."

"We maintain our rating on NFLX shares as we believe near-term earnings upside will be curbed by higher content costs and we expect more competition in subscription streaming. But to impact NFLX's sub growth, a competitive offering would need to be very low priced, provide broad access to content, and perhaps leverage an existing user
base and/or other products."

Netflix closed Thursday at $168.33, rising by $1.65, or 0.99 percent. Barclays has a price target of $140 on them, and maintains their "Equalweight" rating.