Satellite television operator DirecTV Group posted a quarterly profit versus a year-earlier loss, as the customer turnover rate improved.
DirecTV, controlled by Rupert Murdoch's News Corp, also announced a $3 billion share buyback plan. Their shares rose 5%. Revenue rose 7% to $3.6 billion from $3.36 billion.
News Corp is starting to make their mark on DirecTV. With everything that they have learnt from running Europe's most successful satellite TV group, BSkyB, they are now implementing changes at DirecTV. But there is much to do as the disappointing new customer numbers show.
They will focus short term on improving customer churn rates and customer profitability. This they will do by improving content and packaging.
But to really grow the business they have to move fast to offer their own triple play of TV, hi-speed Internet access and telephony. Until then (and this will not be for at least another year) they will continue to struggle versus Time Warner, Cablevision, Comcast and new entrants Verizon and AT&T.
To get new subscriber numbers moving they will have to get their triple play to market fast.
Wednesday, February 08, 2006
NBC in Internet TV deal for TV and movies
Aeon Digital has announced a licensing agreement with NBC Universal that will make movies and television events available on-demand over the Internet.
Titles will be available for a 24-hour period after they are selected. Among the covered television events are "Jerry Springer: Uncensored," the "Blind Date" franchise and "The Land Before Time." Pricing has yet to be announced.
Consumers will need an Aeon Digital set-top box connected to broadband to access the services' music, television and movies. The first of these, the DV-200, will become available at retail stores this spring for $299.
And there lies in my opinion the catch. Why will people want to shell out a few hundred dollars for yet another piece of hardware. That is why the PC has to be the device of choice for serving up IPTV. And the portals plus iTunes have to be the online archives for all this content.
Where that leaves the Aeon Digitals of this world I'm not quite sure. Maybe they'll get bought up by set top box companies or cable guys.
Titles will be available for a 24-hour period after they are selected. Among the covered television events are "Jerry Springer: Uncensored," the "Blind Date" franchise and "The Land Before Time." Pricing has yet to be announced.
Consumers will need an Aeon Digital set-top box connected to broadband to access the services' music, television and movies. The first of these, the DV-200, will become available at retail stores this spring for $299.
And there lies in my opinion the catch. Why will people want to shell out a few hundred dollars for yet another piece of hardware. That is why the PC has to be the device of choice for serving up IPTV. And the portals plus iTunes have to be the online archives for all this content.
Where that leaves the Aeon Digitals of this world I'm not quite sure. Maybe they'll get bought up by set top box companies or cable guys.
Apple and Showtime Networks announce ground-breaking content partnership
Apple and Showtime Networks, the premium cable unit of CBS, the media company led by Les Moonves, announced a ground-breaking content partnership today.
The two entities declared in a joint statement that some of Showtime's sophisticated shows would be available via iTunes. They will include Golden Globe award nominees Sleeper Cell, a drama about the hunt for deep-cover terrorists, and Weeds, a look at the wacky-tobaccy trade in suburbia.
The deal changes the industry equation. Previous agreements for ABC or General Electric's NBC to "mobilize" their content involved free broadcast material. This marks the first time a premium cable channel is furnishing its content for such a use.
Programs will be available for $1.99 per episode for viewing on an iPod or the home computer. This is another major step forwards for Apple's iPod and for portable TV.
The two entities declared in a joint statement that some of Showtime's sophisticated shows would be available via iTunes. They will include Golden Globe award nominees Sleeper Cell, a drama about the hunt for deep-cover terrorists, and Weeds, a look at the wacky-tobaccy trade in suburbia.
The deal changes the industry equation. Previous agreements for ABC or General Electric's NBC to "mobilize" their content involved free broadcast material. This marks the first time a premium cable channel is furnishing its content for such a use.
Programs will be available for $1.99 per episode for viewing on an iPod or the home computer. This is another major step forwards for Apple's iPod and for portable TV.
Tuesday, February 07, 2006
Apple launches new Nano and slashes price of Shuffle
Apple Computer today announced launching a new 1 gigabyte iPod nano music player for $149 and said it cut the price of its Shuffle music player. The price of its 512 megabyte Shuffle music player will sell at $69, down from $99. Its 1 gigabyte model will sell for $99, down from $129.
The new 1 gigabyte Nano, which is immediately available, holds up to 240 songs or 15,000 photographs. These lower prices should open the market up even more. Getting the Shuffle down consistently below $100 may be the real headline.
Does this prove that cut-throat competition from other hardware players has at least forced Apple to reduce prices to hold on to their market share? Looks like it, but it also reveals how Apple is further differentiating lower spec players from the higher end, higher price video players. One set for the truly mass market and one for the margins.
The new 1 gigabyte Nano, which is immediately available, holds up to 240 songs or 15,000 photographs. These lower prices should open the market up even more. Getting the Shuffle down consistently below $100 may be the real headline.
Does this prove that cut-throat competition from other hardware players has at least forced Apple to reduce prices to hold on to their market share? Looks like it, but it also reveals how Apple is further differentiating lower spec players from the higher end, higher price video players. One set for the truly mass market and one for the margins.
Google launches integrated chat and email
Google has launched Gmail Chat, which will let users send instant messages with one click from their e-mail account, see when contacts are online and save the chat history like an e-mail message.
The application's Quick Contacts list is synchronized with the user's Google Talk friends list and automatically displays the people a user communicates with most frequently and shows their online status. Clicking on a contact listed as being online opens a chat window in the browser.
Gmail Chat also allows users to save their chat records, for easy searching later. And you can set chats to "off the record" if you do not want them recorded.
Gmail is now the US' 4th most popular web based email program and Google Chat the 7th most popular Instant Messaging application. And integrated chat and email is the way forwards. MSN and AOL already have similar offerings.
GMail continues to make strides, but then they need to for they are a long way behind leaders such as Yahoo, AOL and MSN.
The application's Quick Contacts list is synchronized with the user's Google Talk friends list and automatically displays the people a user communicates with most frequently and shows their online status. Clicking on a contact listed as being online opens a chat window in the browser.
Gmail Chat also allows users to save their chat records, for easy searching later. And you can set chats to "off the record" if you do not want them recorded.
Gmail is now the US' 4th most popular web based email program and Google Chat the 7th most popular Instant Messaging application. And integrated chat and email is the way forwards. MSN and AOL already have similar offerings.
GMail continues to make strides, but then they need to for they are a long way behind leaders such as Yahoo, AOL and MSN.
Portugal Telekom subject to audacious bid
An audacious $12.5bn bid for Portugal Telecom by Sonae has sparked a consolidation frenzy in the Portugese market. For many believe that if the bid by conglomerate Sonae fails, then one of the large European telco's such as France Telecom or Telefonica of Spain might step in.
Sonae is a much smaller engineering to telco conglomerate that already operates a fixed line and mobile business in Portugal. Portugal Telecom's share price has jumped on the back of the news.
Whether the deal is successful or not will largely depend on the Portugese government who owns a golden share and has a veto on the appointment of the CEO and Chairman. Either way the bid should lead to a restructuring of the cosy Portugese telecom market.
And the consolidation and restructuring of the European telco market continues.
Sonae is a much smaller engineering to telco conglomerate that already operates a fixed line and mobile business in Portugal. Portugal Telecom's share price has jumped on the back of the news.
Whether the deal is successful or not will largely depend on the Portugese government who owns a golden share and has a veto on the appointment of the CEO and Chairman. Either way the bid should lead to a restructuring of the cosy Portugese telecom market.
And the consolidation and restructuring of the European telco market continues.
Blinkx announces deal with news broadcaster for ad based online videos
Blinkx, the online video search startup, has struck a deal with ITN to make the British news broadcaster’s online video content searchable, as well as to create a video player specifically for the company.
And the two will make money by inserting ads into the ITN content. And they will share the revenues. This is the first time that Blinkx has openly communicated their business model with a partner.
Inserting ads into searchable online video content has to be the way forwards. That way the content remains free to the user. If Blinkx can crack the model, then they're onto something important. And even though advertisers spent only $225 million on online video ads in 2005, according to eMarketer, but by 2007, that number could triple to $640 million and reach $1 billion by 2008.
Blinkx are looking increasingly well positioned. So when will Newscorp make a play for them?!
And the two will make money by inserting ads into the ITN content. And they will share the revenues. This is the first time that Blinkx has openly communicated their business model with a partner.
Inserting ads into searchable online video content has to be the way forwards. That way the content remains free to the user. If Blinkx can crack the model, then they're onto something important. And even though advertisers spent only $225 million on online video ads in 2005, according to eMarketer, but by 2007, that number could triple to $640 million and reach $1 billion by 2008.
Blinkx are looking increasingly well positioned. So when will Newscorp make a play for them?!
Monday, February 06, 2006
Dell gets out of digital music players and Sony Ericsson gets into competition with Blackberry
Today saw more changes in the consumer electronics world as Dell announced that they would all but get out of the digital music player market as their attempt to take on Apple's huge dominance of the market has clearly failed.
In the mean time it looks as though Apple's iTunes is picking up more and more momentum as video sales increase and networks hint at early successes from their iTunes launches, prompting them to offer more programs. NBC and MTV seem particularly happy.
And lastly, Sony Ericsson are the latest company to take on RIM's Blackberry for a share of the wireless email market. They have just launched the M600, which has Blackberry email software embedded and looks cannily like an iPod. Mind you with 600M corporate email users to go after it's not suprising things are hotting up.
In the mean time it looks as though Apple's iTunes is picking up more and more momentum as video sales increase and networks hint at early successes from their iTunes launches, prompting them to offer more programs. NBC and MTV seem particularly happy.
And lastly, Sony Ericsson are the latest company to take on RIM's Blackberry for a share of the wireless email market. They have just launched the M600, which has Blackberry email software embedded and looks cannily like an iPod. Mind you with 600M corporate email users to go after it's not suprising things are hotting up.
Google to launch rival to PayPal
It looks like Google is preparing to launch a service to rival PayPal, i.e. secure online payments. And the service looks set to be called GBuy.
If this is true, this would be a major development for Google and one that would fit perfectly with their existing business model and could prove lucrative when run against their existing franchises.
For, Google could use GBuy to support AdSense, Google Base, Googe Video, Google Music (when it comes) and more. If the rumours prove true, PayPal should be concerned.
If this is true, this would be a major development for Google and one that would fit perfectly with their existing business model and could prove lucrative when run against their existing franchises.
For, Google could use GBuy to support AdSense, Google Base, Googe Video, Google Music (when it comes) and more. If the rumours prove true, PayPal should be concerned.
Google, Skype and VC's invest in Wi-Fi sharing network Fon
Google, Skype, Index Ventures and Sequoia Capital will have today announced $21.7m in 1st round funding for Madrid-based Fon, the Wi-Fi sharing network that went live two months ago.
Fon's users of the service, Foneros, are known as either “Bill”, “Linus” or “Alien”. Bill members – after Bill Gates – download secure software from Fon that turns their home wi-fi network into a hotspot anyone within its range can use to connect to the internet for a fee.
Linus members – after Linus Torvalds, creator of the free Linux software – allow their hotspots and bandwidth to be shared for free and can use any other members’ without charge.
Aliens pay to connect to the Fon network and do not share their own networks. Fon and Bills will share the revenues earned from Aliens and other Bills.
The service went live in November and has registered 3,000 users in 53 countries in two months. Fon aims to be the largest Wi-Fi hotspot provider in the world.
It is not clear yet whether Google or Skype will assist Fon other than providing them with financing, but if they did, this would be a major boost for the company. Just securing the backers that they have secured at such an early stage in the company's existence bodes well.
Fon's users of the service, Foneros, are known as either “Bill”, “Linus” or “Alien”. Bill members – after Bill Gates – download secure software from Fon that turns their home wi-fi network into a hotspot anyone within its range can use to connect to the internet for a fee.
Linus members – after Linus Torvalds, creator of the free Linux software – allow their hotspots and bandwidth to be shared for free and can use any other members’ without charge.
Aliens pay to connect to the Fon network and do not share their own networks. Fon and Bills will share the revenues earned from Aliens and other Bills.
The service went live in November and has registered 3,000 users in 53 countries in two months. Fon aims to be the largest Wi-Fi hotspot provider in the world.
It is not clear yet whether Google or Skype will assist Fon other than providing them with financing, but if they did, this would be a major boost for the company. Just securing the backers that they have secured at such an early stage in the company's existence bodes well.
Saturday, February 04, 2006
Sony to spin off 4 divisions
The word is out that Sony is spinning off 4 divisions. And a quick look at them makes you wonder what they were thinking when they got into these businesses in the first place. For what they ever had to do with the Sony brand is anyone's guess.
The four businesses are importer-retailer Sony Plaza Co, cosmetics maker B&C Laboratories Inc, French-restaurant chain Maxim's de Paris Corp, and mail order firm Sony Family Club Inc.
I guess chopping these took Howard Stringer exactly three minutes to figure out.
The four businesses are importer-retailer Sony Plaza Co, cosmetics maker B&C Laboratories Inc, French-restaurant chain Maxim's de Paris Corp, and mail order firm Sony Family Club Inc.
I guess chopping these took Howard Stringer exactly three minutes to figure out.
Friday, February 03, 2006
EU to crack down on European mobile roaming charges
Telecoms companies are facing European Commission action to force down the prices they charge the EU's 380m customers for international mobile phone calls.
And it's about time too, the costs of making calls when roaming around Europe on mobile phones is outrageous. This puts even more pressure on European mobile operators to accellerate the take-up of their Internet and data services as the action will reduce their call revenues and earnings even further.
And it's about time too, the costs of making calls when roaming around Europe on mobile phones is outrageous. This puts even more pressure on European mobile operators to accellerate the take-up of their Internet and data services as the action will reduce their call revenues and earnings even further.
Apple's iPod faces class action lawsuit in US
Apple is facing a class action lawsuit over it's hugely popular iPod in the US as an aggrieved customer filed a complaint claiming the company did not adequately warn about the potential for damaging hearing loss when playing the music player at full volume.
iPods sold in Europe contain software that limits their noise output to 100 decibels, but the complaint alleges that iPods sold in the US can produce sound levels of up to 115 decibels – louder than a helicopter or a small explosion.
This is not the first legal threat that Apple has faced to their iPod franchise, but this one looks reasonably serious.
iPods sold in Europe contain software that limits their noise output to 100 decibels, but the complaint alleges that iPods sold in the US can produce sound levels of up to 115 decibels – louder than a helicopter or a small explosion.
This is not the first legal threat that Apple has faced to their iPod franchise, but this one looks reasonably serious.
ESPN's cellphone service goes live this Super Bowl Sunday
ESPN's long-awaited cell phone service kicks off in the US on Super Bowl Sunday. Customers will get access to shows including "Pardon the Interruption," as well as breaking stories from ESPN News to fit the small mobile phone screen.
Video content will change throughout the day as stories develop, and highlights will be posted quickly when games are finished. And the service named "SportsCenter" looks set to be popular amongst the huge amounts of predominantly male sports fans.
And ESPN is just the latest company to dive into the increasingly popular market for MVNO's (companies that launch branded cellphone services but are not mobile operators - they rent the networks off the mobile operators.). Perhps the best known international MVNO is Virgin Mobile, who now has a highly profitable business with millions and millions of customers.
And the MVNO market could get even more interesting next year with the launch of new mobile TV broadcast networks designed to pump TV and movies out to the wireless masses.
And in Europe MVNO's are becoming more popular amongst leading brands such as Virgin and the Easy Group, amongst retailers such as Tesco and even airlines such as Ryanair.
And the US is following, with services to be launched this year from ESPN and Disney, from 7-Eleven and cable giant Comcast. But, if you're a sports fan it all starts on Sunday with ESPN. Go get 'em!
Video content will change throughout the day as stories develop, and highlights will be posted quickly when games are finished. And the service named "SportsCenter" looks set to be popular amongst the huge amounts of predominantly male sports fans.
And ESPN is just the latest company to dive into the increasingly popular market for MVNO's (companies that launch branded cellphone services but are not mobile operators - they rent the networks off the mobile operators.). Perhps the best known international MVNO is Virgin Mobile, who now has a highly profitable business with millions and millions of customers.
And the MVNO market could get even more interesting next year with the launch of new mobile TV broadcast networks designed to pump TV and movies out to the wireless masses.
And in Europe MVNO's are becoming more popular amongst leading brands such as Virgin and the Easy Group, amongst retailers such as Tesco and even airlines such as Ryanair.
And the US is following, with services to be launched this year from ESPN and Disney, from 7-Eleven and cable giant Comcast. But, if you're a sports fan it all starts on Sunday with ESPN. Go get 'em!
Amazon's stock slumps on lower earnings - but the future looks bright
Amazon.com last night announced that their net profit dropped in its crucial holiday quarter as shipping and technology costs rose and revenue fell shy of Wall Street expectations, sending their shares down more than 10%.
4th quarter net income was $199 million, compared with $346.7 million, in the year-ago period. Sales rose 17% to $2.98 billion from $2.54 billion a year earlier, missing analysts' targets of $3.08 billion.
There are lots of good reasons for Amazons earnings and revenues being lower than expected, including shipping promotions and a higher propensity of goods sold by Amazon partner sites rather than by Amazon themselves.
But it seems the real issue is that Jeff Bezos and his team believe that the Internet is going into a new phase which requires another chunk of investment in technology and new products.
For it looks like Amazon are not anly about to launch new features such as search and online ads, but they are also diving into major new product initiatives. The most exciting look to be a music store, a video-on-demand service and electronic books. Some even under the Amazon label.
So, like everyone else, Amazon believes that the future lies in downloadable digital products and the convergence of media and technology. So, why shouldn't Amazon become a publishing label? And maybe even a record label in the future.
For one day artists, writers and musicians may create their own products and sell them directly via online stores and marketplaces, leaving out the middlemen. If so, Amazon could be well placed to capitalise. They need to make the investments now. And they should pay off well in 2-3 years.
4th quarter net income was $199 million, compared with $346.7 million, in the year-ago period. Sales rose 17% to $2.98 billion from $2.54 billion a year earlier, missing analysts' targets of $3.08 billion.
There are lots of good reasons for Amazons earnings and revenues being lower than expected, including shipping promotions and a higher propensity of goods sold by Amazon partner sites rather than by Amazon themselves.
But it seems the real issue is that Jeff Bezos and his team believe that the Internet is going into a new phase which requires another chunk of investment in technology and new products.
For it looks like Amazon are not anly about to launch new features such as search and online ads, but they are also diving into major new product initiatives. The most exciting look to be a music store, a video-on-demand service and electronic books. Some even under the Amazon label.
So, like everyone else, Amazon believes that the future lies in downloadable digital products and the convergence of media and technology. So, why shouldn't Amazon become a publishing label? And maybe even a record label in the future.
For one day artists, writers and musicians may create their own products and sell them directly via online stores and marketplaces, leaving out the middlemen. If so, Amazon could be well placed to capitalise. They need to make the investments now. And they should pay off well in 2-3 years.
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