First Take: Investors are binging on Netflix as the new HBO

SAN FRANCISCO — Orange is the New Black may have helped make Netflix the new HBO with investors.

Netflix's on Monday reported a U.S. paid subscriber leap that puts the streaming service squarely ahead of Time Warner's HBO, according to analyst estimates.

The advances by Netflix spotlight a winning formula around original programming to attract new membership. Original titles such as Orange is the New Black and its Emmy-winning House of Cards were big attractions for subscribers. Binge viewing of such series titles have turned Netflix into a hits maker for a new generation.

"We went to a second season of Orange Is the New Black early because we had seen all 13 episodes (and) were highly confident in the forecast models and the quality of the show," Netflix Chief Content Officer Ted Sarandos said on a conference call.

Netflix's U.S. paid subscribers jumped to 29.9 million in the third quarter, up from 28.6 million in June, passing HBO's 28.7 million, according to market researcher SNL Kagan

Wall Street investors applauded Netflix's programming results. Shares of Netflix rocketed 10%, at $391.39, in after-hours trading on the news.

Overall membership at Netflix soared in the quarter from a year ago. Netflix reported a more than 33% jump in members from a year ago, at 40 million compared with less than 30 million in the prior period.

"I think Orange was a great success for us," Netflix CEO and founder Reed Hastings said on the call. "We're trying to do more great content like Orange."

Netflix quarterly results beat estimates, top to bottom, according to a survey of forecasts from Thomson Reuters. Company net income popped 315%, at $31.8 million, compared with a year ago. Revenue nudged past estimates by $6 million on just over $1.1 billion in the quarter. Earnings per share of 52 cents beat analyst forecasts for 49 cents in the period.

Netflix's international audience jumped by 1.4 million new members from a year ago, driven by Nordic and Netherlands expansion efforts, the company said.

Eyes on Apple for new iPads at US event

Apple is on Tuesday expected to show off slick new iPads to take on rival tablet makers during the prime year-end holiday shopping season. 

The culture-changing California company has revealed little about an invitation-only event in San Francisco, but analysts believe a spotlight will shine on the iPad line.

"Job One for Apple is to get something out there on the large-size iPad that gets people excited, then obviously from a specification focus, the Mini needs to catch up with what everybody else has done," NPD analyst Stephen Baker told AFP.

"There are a lot of other things happening in that large-size tablet space and there is a huge amount of choice in smaller devices."

Industry tracker Gartner on Monday forecast that global tablet shipments will reach 184 million units this year in a 53.4 % rise from last year.

The high-end of the market, where iPads dominate, has seen people opting for small tablets which cost less than full-sized models, according to Gartner.

"Continuing on the trend we saw last year, we expect this holiday season to be all about smaller tablets as even the long-term holiday favorite - the smartphone - loses its appeal," said Gartner research vice president Carolina Milanesi.

The iPad remains the largest-selling tablet, according to surveys, but its market share is being eroded by rivals using the Google Android operating system.

Apple is also under pressure to adapt to the popularity of premium tablets with high-quality screens in the seven- to eight-inch (18- to 20-centimeter) range where the Mini competes.

This has analysts confident that Apple on Tuesday will show off a Mini with screen quality on par with that of its full-sized iPad.

Emailed invitations to the Apple event revealed little other than the time and place, and bore the message: "We still have a lot to cover."

A graphic in the shape of an iPad showed Apple's iconic logo under a shower of colorful leaves.

Unconfirmed reports are that Apple unveilings will include a full-size iPad that will be thinner than its predecessor and boast improved capabilities.

Scrutiny of Apple's supply chain has industry trackers thinking the new iPad will get "narrower, thinner, and lighter" and possibly be built with processors at least as powerful as those used in the freshly-launched iPhone 5S.

Some analysts will be watching whether new iPad models have 64-bit processors as engines in a significant boost that would enable tablets to handle more heavy weight programs and games.

And analysts agreed that top-end, full-size iPads may also get the fingerprint recognition security feature that has been a hit in the iPhone 5S.

"It sounds jaded, but tablets are a maturing market," said Forrester analyst Sarah Rotman-Epps.

"We expect few surprises in this category that Apple kickstarted only three years ago," she continued.

"It will be difficult for Apple to move the needle on new tablet sales, as the strongest growth is coming from emerging markets where customers are more price-sensitive."

Apple was also expected to discuss its latest computer operating system and its Mac Pro desktop work station at the event.

Eyes on Apple for new iPads at US event

Apple is on Tuesday expected to show off slick new iPads to take on rival tablet makers during the prime year-end holiday shopping season. 

The culture-changing California company has revealed little about an invitation-only event in San Francisco, but analysts believe a spotlight will shine on the iPad line.

"Job One for Apple is to get something out there on the large-size iPad that gets people excited, then obviously from a specification focus, the Mini needs to catch up with what everybody else has done," NPD analyst Stephen Baker told AFP.

"There are a lot of other things happening in that large-size tablet space and there is a huge amount of choice in smaller devices."

Industry tracker Gartner on Monday forecast that global tablet shipments will reach 184 million units this year in a 53.4 % rise from last year.

The high-end of the market, where iPads dominate, has seen people opting for small tablets which cost less than full-sized models, according to Gartner.

"Continuing on the trend we saw last year, we expect this holiday season to be all about smaller tablets as even the long-term holiday favorite - the smartphone - loses its appeal," said Gartner research vice president Carolina Milanesi.

The iPad remains the largest-selling tablet, according to surveys, but its market share is being eroded by rivals using the Google Android operating system.

Apple is also under pressure to adapt to the popularity of premium tablets with high-quality screens in the seven- to eight-inch (18- to 20-centimeter) range where the Mini competes.

This has analysts confident that Apple on Tuesday will show off a Mini with screen quality on par with that of its full-sized iPad.

Emailed invitations to the Apple event revealed little other than the time and place, and bore the message: "We still have a lot to cover."

A graphic in the shape of an iPad showed Apple's iconic logo under a shower of colorful leaves.

Unconfirmed reports are that Apple unveilings will include a full-size iPad that will be thinner than its predecessor and boast improved capabilities.

Scrutiny of Apple's supply chain has industry trackers thinking the new iPad will get "narrower, thinner, and lighter" and possibly be built with processors at least as powerful as those used in the freshly-launched iPhone 5S.

Some analysts will be watching whether new iPad models have 64-bit processors as engines in a significant boost that would enable tablets to handle more heavy weight programs and games.

And analysts agreed that top-end, full-size iPads may also get the fingerprint recognition security feature that has been a hit in the iPhone 5S.

"It sounds jaded, but tablets are a maturing market," said Forrester analyst Sarah Rotman-Epps.

"We expect few surprises in this category that Apple kickstarted only three years ago," she continued.

"It will be difficult for Apple to move the needle on new tablet sales, as the strongest growth is coming from emerging markets where customers are more price-sensitive."

Apple was also expected to discuss its latest computer operating system and its Mac Pro desktop work station at the event.

Netflix customer gains reinforce growth hopes, shares jump

Netflix, with over 100,000 Irish customers, gained more subscribers than expected with help from original series like "Orange is the New Black.”

The news sent its shares up 11pc, to a record high.

Netflix quadrupled profit in the third quarter as it added a higher-than-expected 1.3 million customers to its subscription video streaming service in the United States.

The company, which has invested heavily in original series such as political satire "House of Cards," said it had 31.1 million U.S. streaming users from July to September.

For the last three months of the year, Netflix said it expects to add about the same number of US. streaming customers it signed up a year earlier, and will end 2013 with 32.7 million to 33.5 million users.

"That keeps the view alive that this company has a larger subscriber base and has pricing leverage in its corner to extract more value," said Janney Montgomery Scott analyst Tony Wible, who rates Netflix a "buy."

Shares rose 10.6pc after-hours to $392.50, up from their close of $354.99 on the Nasdaq. The stock has racked up successive highs since September, as investors bet on its growth prospects.

During the quarter, Netflix released critically acclaimed prison drama "Orange is the New Black," part of its push into original programming to attract customers to its $8-a-month movie and TV streaming service.

Its original series slate generated buzz during the quarter, with 14 Emmy nominations and three wins for shows including "House of Cards."

The company said it will double investments in original programming in 2014, when it will air second seasons of both "House of Cards" and "Orange is the New Black." Spending on original shows will remain below 10pc of its global content expenses.

Netflix was added in September as an option on cable set-top boxes through two companies in Europe. CEO Reed Hastings, in a webcast after the earnings release, said he was "hopeful" Netflix could reach a similar deal with Comcast Corp or other U.S. cable operators.

MOMENTUM

Wall Street also singled out the company's growth abroad. It added 1.4 million customers in international markets, bringing its reach in foreign territories to 9.2 million, and said it will launch in unspecified new countries next year.

Netflix reported earnings-per-share of 52 cents, beating the average of 49 cents projected by Wall Street analysts surveyed by Thomson Reuters I/B/E/S.

Net income for the quarter reached $32m, up from $8m a year earlier, Hastings and CFO David Wells said in a letter to shareholders.

Standard & Poor's equity analyst Tuna Amobi said Netflix appeared to be gaining traction in some of its newest markets, and noted that "Orange is the New Black" will end the year as the company's most-watched original series.

"There is not a whole lot not to like. There is a whole lot of momentum behind the story," Amobi said. "They appear to have turned an important corner for potentially sustained subscriber growth."

Amobi said he had a "hold" rating on Netflix shares because of their valuation after the year's stock run-up. Before the earnings release, Netflix shares had gained 283pc this year, far exceeding the 23pc gain in the S&P 500.

Twenty-three of 35 Wall Street analysts had a "hold" rating prior to Monday's earnings release. Six rated Netflix a "buy" and six recommended "sell." Skeptics question whether Netflix can grow quickly enough to justify its high share price and pay the cost of movies and TV shows, original programming, and its push into foreign territories.

Ten years ago, Netflix was the highest-performing stock on the Nasdaq when it was delivering video only through DVDs mailed in red envelopes, a business from which it is now moving away.

At that time, "we had solid results compounded by momentum-investor-fueled euphoria," Hastings and Wells said in their letter. "Some of the euphoria today feels like 2003."

Nokia Lumia 1520 leak confirms 20-megapixel PureView camera

With the Nokia World event scheduled for tomorrow, we're all pretty excited to see exactly what Nokia has in store for us.

However it seems that someone got a little too excited, with a Nokia Lumia 1520 page appearing over on Nokia's store on Chinese website Tmall.

The page offers up a few tidbits of information, appearing to confirm the rumoured quad-core Qualcomm Snapdragon 800 processor and 20MP PureView camera.

Big is the new black... cyan, or yellow

All this will cost you a pretty penny, however, setting you back 4999 Yuan (around £510, $820, AU$850) although obviously the actual international prices will probably be different.

The anticipated 6-inch 1080p screen will mean that Nokia and Windows Phone venture into phablet territory for the first time. This puts the Lumia 1520 up against the new HTC One Max and the Samsung Galaxy Note 3.

Both the larger screen and quad-core support were made possible by the recent Windows Phone 8 update 3 that was announced last week.

Check back soon for our Nokia Lumia 1520 review, but for now you should see what we know right now.

iPhone 6 Release Date May Not Near But Still We Know What to Expect from it

As usual Apple release a new version of iPhone and after few months it launches the upgraded ‘S’ version of the same device. Well, this time around it was slightly different as the iPhone 5S was replaced by not one but two upgraded versions namely, iPhone 5S and iPhone 5C. So, in the coming year, next gen iPhone which is nothing about iPhone 6 is going to arise.

In 2013, we heard a lot about versions of iPhones from the beginning of the year. However, it was only in the month of September that iPhone 5S and iPhone 5C was announced. Now, we are hearing rumors about the iPhone 6 release date.

The iPhone 6 will be launched in 2014. The iPhone 5S is now selling like hot cakes. The gold version of the phone is completely sold out. Even the popularity of iPhone 5S is at its peak, rumors of iPhone 6 have started surfacing on the web.

From its past, we can come to know that Apple adheres to a same release pattern for iPhone every year. Each year we can see a new version of iPhone and iPad coming into the market. According to a tech analyst from NPD DisplaySearch, the iPhone 6 is expected to arrive early in the coming year. He indicates that the product may arrive in the second quarter of 2014. So, we can expect the iPhone 6 to arrive in April, May or June. In this year, even the iPhone 5S was heavily rumored to arrive in June but it was released in September. So, it is possible that this time around Apple would release in June in the coming year.

Apple iPhone fans really want Apple to provide larger display. Many of its competitors like Samsung have produced smartphones and phablets of 5inch or more sizes. Still, Apple has stuck on to release 3.5inch to 4inch iPhones. The iPhone 5, iPhone 5S and iPhone 5C have displays that are larger than all the predecessor models. Some rumors indicate that the iPhone 6 will be available in two display sizes namely 4.7inch and 5.7inch. This news has surfaced after Wall Street Journal had reported the Cupertino firm was testing iPhones of different display sizes. All the rumors hint to the fact that the next gen iPhone will arrive with a larger display

We also feel that Apple will introduce a new design or at least tweak the existing design to produce an attractive looking iPhone 6. We feel that even if Apple packs in a larger display, they will make the phone appear compact. So the idea will be that Apple may pack in an enormous display without increasing the size. Also, we expect the iPhone 6 to be lighter and slimmer than predecessor models.

Every year Apple has been introducing a new processor and camera on its iPhone. The 64 bit A7 chip may be the latest processor but Apple may be working on a brand new processor which will be made known with the iPhone 6. As far as camera is concerned, Apple may introduce features like Optical Image Stabilization and Optical Zoom. Also, apart from launching the iPhone 6 in storage variants like 16GB, 32GB and 64GB, Apple may launch a larger storage variant of 128GB as well.

As far as the software of the iPhone 6 is concerned, we feel that since the iOS7 has been recently announced, Apple won’t be releasing a newer iOS with iPhone 6 but may rather bring new features to the iOS7. Some rumors even point to the fact that Apple may roll out the iOS8 with iPhone 6.

OS X Mavericks: top 10 features

As well as new iPads, Apple is expected to release the latest update to its OS X operating system at its 22 October event in San Francisco. The Telegraph takes a look at some of its top features.

1. iBooks

iOS users have been using iBooks for years but now desktop users will get to join the club, with a standalone iBooks application available in OS X 10.9 Mavericks. iBooks will sync with customers' literary purchases through the iTunes Book Store, and across their Apple devices through iCloud.

Students and academics will be able to highlight and make notes on texts, or cut and paste text from an iBook into a document for quotation and annotation. All notes are syncronised across devices, so a student could make notes as they read a book on their iPad and then switch to a Mac desktop to write their essays.

Another feature which has been available iOS for some time, Apple Maps on OS X Mavericks will allow the user to plan out a journey on their Mac and then send the directions through to their iPad or iPhone running iOS 7 for navigation on the go.

The new Mac Maps app lets you look up locations, see maps in 2D or 3D, view vector map illustrations or overhead photographic views and see live traffic and Yelp information. The inclusion of Maps will also mean developers can embed the maps into their Mac applications.

3. Shared Links

The Shared Links feature from iOS 7 will also be available on Safari in Mavericks, providing users with a dedicated list of links shared by their friends on Twitter, Facebook and LinkedIn. Having these in Safari will make it easy to quickly look at the web pages being shared by friends and contacts on social networks.

The Top Sites tab will also be updated, allowing users to organise thumbnails of their favourite sites by dragging and dropping them into position or adding them from the Bookmarks tab in the sidebar.

4. AirPlay Display

Mavericks introduces a new feature called AirPlay Display, which allows customers to use an Apple TV as an extra display. It will be possible to drag windows from your Mac display to your TV screen via an Apple TV, and users will be able to set an arrangement via the Displays preference pane.

This could be a cheap way to get a large display for your Mac, or simply a convenient way to screen any kind of video or content from your Mac on your television.

5. Finder tabs

Mavericks takes a cue from web browsers by adding tabs in Finder windows, allowing several pages to be contained within a single window. To open a folder in a new tab, the users will simply have to hold down the Command key while double-clicking a folder in the Finder menu.

Each tab will behave like its own Finder window and the user can adjust the view settings of each one accordingly, so one tab can show an icon view, another a list view, and so on.

6. Tags

Tags offer a new way for users to organise files using meta data. Tags are labels that the user can attach to files, like ‘important’, ‘holiday’ or 'in progress' that allow them to search and group them together by that tag.

Users will be given the option to add tags when they save a file, and can add multiple tags to a single file for cross-referencing. Tags will be integrated into the Finder Sidebar, Toolbar and contextual menus, making it easier for users to filter files and find the information they need.

7. iCloud Keychain

The new iCloud Keychain will store your passwords, credit-card numbers, and personal contact information, and sync them between devices running Mavericks or iOS 7. This means that if you are accessing a site on your iPhone that you would normally view on your laptop and you need to log in, you will not have to remember the password.

This should discourage people from using the same password for multiple sites, because Mavericks will remember their passwords and automatically fill them in. It can also suggest a random password and save the random password in the keychain, so the user never has to remember it. The feature can be enabled or disabled in the iCloud system-preference pane

8. Enhanced dictation

Built-in dictation was introduced in the previous release of OS X, but the version in Mavericks lets the user download an 'Enhanced Dictation' package that displays words as the user is saying them, in the style of third-party dictation products such as Dragon Dictation from Nuance.

Downloading the package ensures that Dictation works even if the Mac is offline, and all of the words are stored on the computer rather than in the iCloud, meaning that your words remain private.

9. Interactive Notifications

Apple is updating Notifications in OS X Mavericks, allowing users to interact with them directly from the notification bubble. For example, if the user gets an email notification they can delete the message without switching back to the main Mail app, or click the reply button to open up a text area and type a reply immediately.

Mavericks introduces a 'Later' button that allows users to delay an update or set a reminder for a later date. The new Notification Centre also issues warnings about a dying battery, a failed Time Machine backup, and ejected disks.

10. App Auto Updating

With OS X Mavericks, Apple introduces auto-updating, which automatically downloads and installs new versions of apps and programs when you are not using the computer. This means that users will always have the latest version of any software, and will not have to worry about handling downloads.

Users can choose to disable this feature if they are worried about their favourite app getting an unpleasant or unwanted update using the App Store preferences.

GarageBand for iOS 7 to break free at iPad mini 2 launch?

Looks like Apple is going down the freemium route once more

Forget the iPad mini 2, give up on the iPad 5 - the biggest revelation at Apple's upcoming event will be that its music app GarageBand is likely to change into a freemium one.

Okay, maybe not the biggest news but Apple embracing in-app purchases points to an app ecosystem that is fast becoming a free or freemium one.

Currently priced at £4.99 ($4.99), the app popped up on Apple's website as a free app which will take advantage of in-app purchases. This was swiftly taken down but not before MacRumors managed to screengrab the information.

Apps are still massive business for Apple, but if it does swap the revenue model for GarageBand then this will send out a rather large message to app developers the world over: paid-for apps are struggling.

Flurry of information

In a fascinating blog post by Flurry back in July, the analytics company spelled out the problems with charging for apps – people just don't want to pay for them, and when they will pretty much pay peanuts.

After looking at the pricing information of 350,000 apps, Flurry found that in 2013 90% of apps in use were free, while in 2011 this was nearer 80%.

Then a further 6% were only willing to pay 99c for an app – leaving 4% worth of slim-pickings for those daring to price an app in the $4.99 and above range.

"While consumers may not like in-app advertising, their behavior makes it clear that they are willing to accept it in exchange for free content, just as we have in radio, TV and online for decades. In light of that, it seems that the conversation about whether apps should have ads is largely over," said Flurry in its blog.

Apple already has a freemium element in GarageBand on the Mac, with Jam Packs, and it has made iWork, iPhoto and iMovie free for new devices so it makes sense that it is going down this route with GarageBand.

With a likely announcement of the iPad 5 and new iPad mini 2, GarageBand may well be another app that you can get stuck into when these shiny new products are released.

How iPad Case Makers Make Cases Without iPads

Sitting in its warehouses in the U.S. and China, Gumdrop has more than 5,000 iPad 5 and iPad Mini 2 cases ready to go, in many different colors and designs. The Gumdrop Drop Tech version promises to protect your iPad from drops with a rubber shell; the Hideaway has a built-in kickstand; and the Hard Candy-branded ShockDrop has a screen protector included.

It's a nice selection of protective gear for the newest iPad. The only problem? The company doesn't actually know if the iPad 5 or iPad Mini 2 will look anything like they think and if the thousands of cases will even fit Apple's newest tablet.

They have made the products without ever seeing the new tablets.

And Gumdrop and Hard Candy aren't the only case makers taking a risk on making new iPad covers without seeing or feeling the new iPads, which are expected to be unveiled by Apple at an event on Tuesday, Oct. 22 in San Francisco.

Because of Apple's secrecy and the cut-throat competition in the case market, the companies that protect our gear feel mounting pressure to design and produce cases -- even before they have final and confirmed measurements from Apple -- so they can be ready to ship as soon as the tablets are announced.

Making an iPad Case Without an iPad 

Just like we have pieced together what the next iPad might look like with rumors and leaked photos, case manufactures do the same.

Tim Hickman, who ran Speck cases before becoming the founder and CEO of Gumdrop and Hard Candy, explains that his company works directly with the factories in China that are making the iPads and iPhones to get the dimensions. The company gets ahold of the computer-aided designs (CAD) and then goes back and forth with the factories to make sure their case designs are on the right path.

"I'm pretty confident that our cases will fit the new iPads," Hickman told ABC News. "We work with the factories really closely. We aren't going to be really far off."

Adam Ashley, the CTO of M-Edge, another company that makes cases for the iPad, says it works off a number of different sources of data, including the leaked photos and rumors, to design its cases before launch.

"We analyze the data -- the rumors and the photographs -- we compile this information and we meet with our product team to assess the confidence level," Ashley told ABC News.

Ashley said there are also a few tricks to making sure the case will fit without the exact measurements. The product designers will leave some room for error in the size of the case and also leave room for button adjustment. For instance, they may leave a larger opening for the buttons on the edge in case Apple decides to make adjustments.

Ashley and Hickman, as well as various other case makers, said Apple does not share the designs or dimensions of its products with any case makers before the official announcements. Immediately after the announcement Apple posts the dimensions of the products on its MFI program website. When reached by ABC News, Apple declined to comment on the specifics on its relationships with the case makers.

The Risks 

But by the time those dimensions are posted by Apple, it can be too late for some of these companies.

M-Edge wouldn't reveal just how big of a hit it could take if the company wasn't prepared with the cases at launch, but said that the "impact of not having cases available at launch would be substantial." Gumdrop and Hard Candy claimed the same.

"It seems each quarter there is someone else trying to get in the game. Our retail partners like Best Buy and Staples really need product at launch, if you don't have product at launch some other company will," Ashley said.

M-Edge wouldn't share how much money it has invested in the new iPad cases, but Gumdrop and Hard Candy said it has more than a quarter of a million dollars riding on this.

In that sense the companies believe the risks associated with creating a case for a product they have never seen is worth it.

"If we are wrong we lose a bunch of money, but if we are right, we can make a lot of money," Hickman said. "It is still a gamble, but in this world, it is the game that is being played."

Windows 8.1 update glitch stops RT starting up

The latest Windows update is causing problems for owners of Microsoft's Surface RT gadgets.

The Windows 8.1 update has reportedly meant some of the touchscreen devices will not start up properly.

Microsoft has removed the update from its website while it looks into what has caused the problems.

At the same time, many people are reporting that the 8.1 update for Internet Explorer does not work well with Outlook and some Google services.

Recovery effort

Soon after the update's global release, on 17 October, Microsoft started to receive reports that once it had been applied to RT tablets and laptops, the gadgets had frozen during the boot-up process.

Windows RT is the version of Microsoft's operating system built to work with mobile and portable devices that use Arm chips. By contrast, other version of Windows run on machines that use processors from Intel or AMD.

Soon after the problems were reported, Microsoft pulled Windows RT 8.1 from its update site.

The update was pulled while it was "investigating a situation affecting a limited number of users", it explained in a support forum response. It added that it was working on a fix for the problem it had caused.

Prior to the official release, Windows RT user Scott Williams found a way to help people with tablets crippled by the update. Mr Williams created a start-up drive with a USB stick that helped bring stricken RT gadgets back to life.

Squashed search

The version of Internet Explorer 11 that ships with Windows 8.1 update has also caused problems for many people.

The updated version of the web browser has caused Google search results to be mashed together at the left hand side of a display. Others have reported IE11 has caused similar usability problems with Google's Play website and Music service.

In a statement, Microsoft said changes Google had made to its search and other sites were responsible for the glitches. Despite this, Microsoft has now made changes of its own to fix the problem, which can be turned on by unticking an option in IE11 that makes the browser use "Microsoft Compatibility lists".

Microsoft has also issued advice about how to get IE11 working with web-accessible versions of its Outlook email program that had become un-useable with the new version of the browser.