According to Rentrak, disc rentals remained the first choice for home video viewing in the U.S. in 2011. Despite the popularity of online streaming services like Netflix and Hulu, movie rental revenues topped $5.65 billion. However, that will not be the case for much longer. Although the movie rental industry profited, overall disc rental revenues in the U.S. dropped. In the fourth quarter, the DVD and Blu-ray rental market was down by 21.3%.

According to a new study by Chadwick Martin Bailey, the TV industry is about to experience a 'radical shift'. The study found that nearly 63% of consumers who watch TV or video on a tablet did so even when there was a TV with the very same content available. Furthermore, 54% of all consumers have tried alternatives to pay-TV such as Netflix, Apple TV, or even network websites.

Barnes & Noble launched its own reading tablet, the Nook, on Monday. The tablet comes with web browsing and email capabilities, a built in microphone, and a 16 GB memory. The tablet can also play movies in high definition. 

New research by In-Stat reveals despite TV apps are not the reason for consumers purchasing connected TVs, over 60% of connected households will use a TV app at least once weekly. The Q2'11 US Digital Entertainment Database report indicates advent smart TV consumers are rapidly adopting online TV applications that are integrated into their connected TVs.

Rapid TV News reports that Microsoft might be looking to hop into the pay-TV game on the content side, taking on Google, Apple and Netflix et al for OTT dominance. Confidential sources have told Reuters that the software giant is in talks to license pay-TV networks in order to become a "virtual cable operator" and roll out its own subscription service online, delivering feeds to televisions through CPE like the Xbox 360 video game console.