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What’s the definition of insanity? Trying the same thing several times and expecting a different outcome. While we wouldn’t suggest that Microsoft’s finest minds are in need of urgent medical care, it does seem as if the company’s executives have failed to heed the lessons doled out this summer. After all, it was only a few months ago that Microsoft had to admit that very few Surface RT tablets had been sold, and booked a $900 million loss on inventory that remains rotting in warehouses.

At today’s launch of Microsoft’s second Windows RT-running slate, Surface chief Panos Panay opened his remarks by saying that the “Surface 2 is not subtle, but is a revamp. It is not the simple changes that everybody wants, but it’s the changes people need.” Unfortunately, the changes that he then went on to describe involved making the device thinner, faster and giving it a full-HD display — criticisms that few had leveled at the first generation of the hardware. No, the problems that every critic had were the limitations of the Surface’s operating system: Windows RT. Not that you’d know it from today’s event. In fact, Microsoft went out of its way to downplay the fact that the Surface 2 runs RT, mentioning the ambitious Windows-on-ARM project only three times in an hour. But why was the star of the show reduced to such a bit-part role?

When we think of BBC iPlayer use on mobile devices, we most often picture someone catching up on dramas with their smartphone during the commute home. Not anymore: newly available March stats from the Beeb reveal that tablet viewing has overtaken phone viewing for the first time. The difference is slight — tablets are only 200,000 requests ahead, at 41 million — but it’s enough to suggest that many now prefer bigger screens when they’re away from a computer or TV. While the broadcaster hasn’t directly explained the change in demographics, it’s not hard to see a possible explanation based on viewer habits. The BBC notes that most tablet-bound iPlayer users watch TV, and most iPlayer TV time overlaps that of traditional viewing, when audiences are more likely to be at home with the larger devices at hand. If you’re one to curl up on the couch to watch Panorama on an iPad or Android slate, then, you may just be part of a growing trend.

Netflix saw a return to profitability and more than half a million new US subscribers in the second quarter of this year, and it’s now announced that it’s added a full two million more streaming members worldwide for the third quarter. That brings the company’s global base of streaming subscribers to 29 million, 25.1 million of which are in the US. It’s also announced another bump in profits to $8 million in net income, with global revenue of $905 million. It’s unsurprisingly a different story when it comes to DVD subscriptions in the US, however, with the company reporting a drop from 9.24 million total subscribers in Q2 to 8.61 million in Q3.

In terms of usage, Netflix says that its streaming members have now consumed over three billion hours of content, and that TV shows now account for about two thirds of that viewing activity. The company has also reiterated its commitment to original programming in its letter to shareholders, although it notes that commitment comes with some front-loaded expenses that will result in negative free cash flow for the next “several quarters” beginning with Q4. The company further adds that it believes “investment in originals is wise, and we will evaluate the performance of the slate next year to determine at what level we should fund additional original.” You can find the full letter and all the numbers at the source link below.

Strategy Analytics has come out with another report on the state of today’s tablet market, which, not surprisingly, remains dominated by Apple. Cupertino’s iOS comprised about 58 percent of the global slate market during Q4 2011 — well ahead of Android’s record high 39 percent share, but down from the 68 percent it commanded during the final quarter of 2010. Android, in fact, has seen quite a jump over the past year, with total shipments reaching 105 million units during the last quarter, up from just 3.1 million last year (Apple, by comparison, shipped 15.4 million iPads during Q4, versus the 7.3 million it shipped last year). On a global level, the tablet market continues to blossom, with total shipments reaching an all-time high of 26.8 million units last quarter, representing a whopping 150 percent increase over last year. Read the full report at the source link below, or head past the break for a more succinct press release.

No one has quite figured it out yet, but there seems to be little doubt that tablet devices have their place on the couch to serve as a second screen while American’s enjoy their favorite past time — watching TV. In addition to many independentstartups we’ve discussed in the past, the old guard, that already owns most of broadcast TV stateside, has a startup of its own called ConnecTV. In development for two years already, ConnecTV is currently in beta and has the hopes to go live in January. The idea is of course to put what you might want to see on your second screen while you watch the main action on the big screen. This includes sports scores, statistics, as well as what your friends may or may-not be saying on Twitter or Facebook — and of course advertising. We’d be shocked if most tablet owners weren’t already using their slate in front of the TV and can imagine how many more might if there was a great app that brought it all together.

Digital Consigliere

Dr. Augustine Fou is Digital Consigliere to marketing executives, advising them on digital strategy and Unified Marketing(tm). Dr Fou has over 17 years of in-the-trenches, hands-on experience, which enables him to provide objective, in-depth assessments of their current marketing programs and recommendations for improving business impact and ROI using digital insights.