Reality shows are 
entering the video game world.
Bunim/Murray Productions, creators of “The Real World” and “The Challenge,” have announced plans to team with CBS Interactive division GameSpot to launch “The Controller,” an online show based on Electronic Arts upcoming action shooter video game “Battlefield 3”.
The living room 
television set is starting to look a little long in the tooth.
With hundreds of TV channels to choose from, thousands of on-demand shows at people’s fingertips (plus thousands more from third-party services like Netflix and Hulu) and a near infinite amount of online content fighting for viewers’ attention, the way consumers interact with their sets is severely outdated.
It was hardly 
a secret that Apple would be rolling out its next generation iPhone at a press event Tuesday, but the Cupertino-based company still managed to sneak in a few surprises.
The iPhone 4S, which will be available for pre-order on Oct. 7 and will launch Oct. 14, will look almost exactly like the current 4G model, but a number of under the hood enhancements could be noteworthy for the entertainment industry – as could the expansion of the iPhone’s retail footprint with the addition of Sprint to the carriers offering the phone.
Nintendo is turning to Hollywood to help bolster the 3D content for its 3DS handheld gaming system.
The game maker has announced partnerships with DreamWorks Animation for a pair of timed-exclusive digital shorts as well as with 3net, the joint venture between Discovery, Sony and Imax. Content from both studios became available this morning.
The long-awaited consolidation in the music streaming space is underway.
Rhapsody has acquired Napster from electronics giant Best Buy for an undisclosed price. The deal will combine two of the largest streaming services in the U.S. and could roughly double the number of Rhapsody subscribers.
Amazon has declared 
war against Apple — and a few other companies — announcing a slew of new products at a New York press event Wednesday morning.
As expected, the online retail giant has unveiled plans to release a tablet computer, called Amazon Kindle Fire. The 7-inch device will cost just $199, a price point that’s likely to make it a hot holiday gift item. Shipments are scheduled to begin Nov. 15.
After taking a number of body blows following its decision to hike fees and split its streaming and DVD operations, Netflix is rallying back, announcing a groundbreaking agreement giving it exclusive first-run rights for with DreamWorks Animations’ feature films and television specials.
Amazon, meanwhile, responded with a new partnership for its own streaming service, bringing 2,000 Fox films and television episodes to its Amazon Prime Instant Video program.
(Note: This story was co-written with Variety’s Andrew Wallenstein)
At its f8 conference 
Thursday, Facebook introduced a new class of apps that will allow viewing and sharing of content on its massive social platform via partners including Netflix, Hulu and Spotify.
The apps allow Facebook users to see which songs, movies, TV shows, news and games are being consumed by friends and to sample that content as part of a reformatted Facebook page layout.
As a musician, 
Gene Simmons was responsible for some of the most iconic music of the 1970s. But if he hadn’t been even savvier in the business arena, the world might never have known.
“Creativity is fine, but it’s like having a car without the fuel,” he says. “We have an inferred fiduciary duty as creators of content to make sure that the distribution model is as big as it can be, and reaches as many people as possible in as many ways as possible.”
Netflix plans to separate its streaming and rental-by-mail businesses into separate divisions in the coming weeks.
The company hopes the new division, dubbed ”Qwikster,” will help it stabilize its subscriber base and revive its share prices. To help revive consumer interest, the company plans to add video games to its rental options as well.
Also in the note, CEO and co-founder Reed Hastings acknowledged the overwhelming negative feedback to recent price changes at the company, saying ”I messed up. I owe everyone an explanation.”
Chris Morris: Journalist 