Justice Department Memo Tells Which Telecoms Store Data the Longest

  • “People who are upset that Facebook is storing all their information should be really concerned that their cell phone is tracking them everywhere they’ve been… The government has this information because it wants to engage in surveillance,” an ACLU staff attorney said.
  • A newly released Justice Department internal memo reveals the retention policies of Verizon, T-Mobile, AT&T, and Sprint.
  • Verizon seems the most privacy-friendly, but is the only company that retains text message content. Messages are stored for 5 days; other companies don’t retain message content at all.
  • The retention of “cell-site data” (information of a phone’s movement history based on phone tower usage) varied the most among the four providers.
  • “Verizon keeps that data on a one-year rolling basis; T-Mobile for ‘a year or more;’ Sprint up to two years, and AT&T indefinitely, from July 2008,” reports Gizmodo.
  • Senator Patrick Leahy proposed to alter the Electronic Privacy Communications Act to “protect Americans from warrantless intrusions.”
  • To see your provider’s retention policy, check out the graphic featured in the Gizmodo post.

Editorial on Kindle Fire and Silk: Forget iPad Killer, Amazon is Targeting Google

  • Chris Espinosa, a longtime Apple employee, gives his impression of Amazon’s Silk and Kindle Fire announcements.
  • “Amazon will capture and control every Web transaction performed by Fire users. Every page they see, every link they follow, every click they make, every ad they see is going to be intermediated by one of the largest server farms on the planet,” Espinosa writes in his blog. “People who cringe at the data-mining implications of the Facebook Timeline ought to be just floored by the magnitude of Amazon’s opportunity here.”
  • “Amazon now has what every storefront lusts for: the knowledge of what other stores your customers are shopping in and what prices they’re being offered there. What’s more, Amazon is getting this not by expensive, proactive scraping the Web, like Google has to do; they’re getting it passively by offering a simple caching service, and letting Fire users do the hard work of crawling the Web,” he adds. “In essence the Fire user base is Amazon’s Mechanical Turk, scraping the Web for free and providing Amazon with the most valuable cache of user behavior in existence.”
  • “They use a back-revved version of Android, not Honeycomb; they don’t use Google’s Web browser; they can intermediate user click-through on Google search results so Google doesn’t see the actual user behavior. Google’s whole play of promoting Android in order to aggregate user behavior patterns to sell to advertisers is completely subverted by Amazon’s intermediation. Fire isn’t a noun, it’s a verb, and it’s what Amazon has done in the targeted direction of Google. This is the first shot in the new war for replacing the Internet with a privatized merchant data-aggregation network.”

Facebook Deals Shutdown: Is There a Future for the Social Coupon Biz?

  • Facebook Deals, which offered coupons for local businesses in Facebook users’ main news feeds, officially shut down on Sunday.
  • While some assume the shutdown suggests a failure, sources say that Facebook cut the program because of limited engineering resources the company wanted to place elsewhere.
  • “Groupon and rival LivingSocial are no doubt pointing to Facebook’s withdrawal as evidence that the business is harder to replicate than people previously thought,” reports All Things D.
  • Groupon and BuyWithMe have introduced technology that attempts to track consumer loyalty following their first voucher purchase. Other companies in this space, including Google, are ramping up their coupon platforms, creating mobile solutions that “will recognize when people are close to a deal and allow them to redeem it immediately,” suggests the article.
  • “Last week, Microsoft launched Bing Deals, which is aggregating deals from other major providers to help users browse, find and purchase them in one place,” according to All Things D. “Ironically, that site is being powered by The Dealmap, which Google acquired in August.”

Spotlight on Spotify: Facebook Integration, Radio Feature, Impact on Piracy

  • Spotify has been drawing a great deal of media attention this week, more so than the growing number of other streaming music services.
  • Since the company announced its partnership with Facebook at the recent F8 event, Spotify has gained more than one million new users, despite the public outcry from those who question limiting the service’s signup to Facebook users only.
  • In response to concerns regarding Facebook’s media-sharing philosophy, Spotify released a new update that enables users to access the Facebook app without sharing their listening habits, reports Digital Trends. This may be good news for subscribers not happy with the recent announcement regarding Facebook integration — and could potentially serve as a model for how others offer access to services via social networking.
  • In related news from The Hollywood Reporter, Spotify recently released a radio feature in the U.S. that has long been available to European users. Radio will be accessible on the desktop client, but not on the Spotify mobile app. The add-on is reportedly in no way a Pandora killer, due mainly to its lack of mobility and attention to detail.
  • Additionally, Digital Trends reports that Spotify may be having a significant impact on music piracy. Illegal downloads in Sweden have reportedly dropped 25 percent since Spotify launched there in 2009. “Here in the U.S., Spotify isn’t the only option — and it may not even be the best, depending on user preference. Pandora, MOG, Rdio, Grooveshark — the list goes on,” indicates the article. “We don’t yet have numbers to show how these services are affecting music piracy in the U.S. But we’d put our money on them having a similar effect as Spotify is having in Sweden.”

Are There Implications to Consider Regarding the Silk Web Browser?

  • As part of its New York press event yesterday that unveiled the Kindle Fire tablet and three new Kindle e-readers, Amazon announced Silk, a new Web browser powered by Amazon Web Services (AWS) and available exclusively on its new tablet.
  • Amazon Silk is an important part of the Kindle Fire pitch, and as a “split browser” exclusive to the tablet it “gets the heavy lifting done on its EC2 cloud servers and promises faster access as a result,” reports Engadget. “Dubbed Silk to represent an ‘invisible, yet incredibly strong connection,’ it takes advantage of Amazon’s existing speedy connections, and that so many sites are already hosted on its servers to speed up Web access.”
  • Amazon’s cloud-accelerated browser may have some technical implications. First, Amazon may release a Silk desktop browser. It’s reliance on Amazon’s EC2 infrastructure may cut off access to the Web for customers during outages. That said, if Amazon succeeds, it may push other browser developer such as Google, Apple and Microsoft to follow. Mozilla may have a difficult time doing the same.
  • From a privacy perspective, Amazon talks about learning from “aggregate traffic patterns,” but in reality each Kindle has its own Amazon ID. Thus, Amazon will be able to track your personal Web habits, buying patterns and media preferences in detail.
  • “Until the Kindle Fire ships, there are more questions than answers,” suggests ReadWriteWeb. “I’m eager to get hands on a Fire so I can test out Silk and see for myself how it works. I’m not yet concerned about the privacy issues, but I do think they bear watching. What do you think? Is the Silk model something you’re excited about, or is Amazon a middle-man you’d rather do without when browsing the Web?”

Kindle Fire: Amazon Jumps into the Tablet Fray with iPad Competitor

  • Amazon has unveiled the Kindle Fire — a 7-inch touch-screen, color, and Wi-Fi tablet with dual-core processor that will sell for $199. The new tablet was announced by chief exec Jeff Bezos at a press event yesterday in New York City.
  • The Android-based device will offer access to Amazon’s app store, books, streaming movies and TV shows. Moreover, the expectation is that it will increase sales for Amazon’s other merchandise. Fire is available for pre-ordering and will be available November 15.
  • “The online retailer is gambling it can succeed with its tablet where several other giants, including Hewlett-Packard Co. and BlackBerry maker Research In Motion Ltd., have so far failed,” reports The Wall Street Journal. “Unlike those companies, Amazon already has a vast library of digital content to sell and tens of millions of credit-card numbers.”
  • The article suggests that the Kindle Fire may have an advantage over other tablets that have attempted to take on the iPad: “Amazon’s library of digital content, which its tablet users can access. Customers can pay $79 a year for a service known as Amazon Prime, which gives them access to 11,000 movies and TV shows, as well as unlimited two-day shipping for physical goods purchased on Amazon.com. Amazon also sells single movies, TV shows and music songs, with a catalog that competes with that of Apple’s iTunes store.”
  • Amazon also introduced three new Kindle e-readers — a touch-screen 3G version for $149, a touch-screen Wi-Fi version for $99, and a non-touch-screen model for $79.

Disruptive TV Trends: What is the Future of the Business of Television?

  • Amsterdam’s annual IBC event offered a number of potential TV game-changers earlier this month, suggests TVNewsCheck. These include cloud-based or service-oriented architecture (SOA) applications for capturing, producing, processing and distributing digital video and audio; IT-based playout (channel in a box) tools that could potentially make broadcast playout more affordable; and 3D technology likely to be deployed for the 2012 London Olympics.
  • Also on display were technologies “aimed at making 3D production more affordable and compatible with standard 2D operations.”
  • Cloud services were at the forefront since broadcasters are now challenged by having to support an increasing number of distribution platforms.
  • Vendors discussed the fundamental concerns about cloud-based architectures, “notably content security, access to content, collaboration, bandwidth and workflow continuity,” reports TVNewsCheck.
  • In a related article from GigaOM that analyzes shifts in traditional television, venture capitalist Habib Kairouz writes that the TV industry is poised for some significant changes due to a number of upcoming trends: TV anywhere and anytime will catch on; the rise of the Internet-connected TV and interactive programming; and personalized advertising.
  • The article suggests that content owners will benefit as MSOs, IPTV providers, and others compete with one another. MSO’s are hedging their bets by purchasing both traditional and interactive content, while TV manufacturers are looking to build Internet services into their low margin businesses. We should watch for new entrants to increase the disruption in this space.

Aging Hollywood Movies to get 3D Makeover: Will Audiences Respond?

  • Hollywood is moving to convert its previously-released blockbuster hits into 3D. James Cameron is spending a year and $18 million to convert “Titanic” to 3D; “Star Wars” and “Top Gun” are two others in production.
  • “Like a bunch of aging starlets, some older blockbusters are undergoing major cosmetic enhancement to prepare for their comebacks,” reports Los Angeles Times.
  • Disney recently spent $10 million on the 17-year-old animated feature “The Lion King,” whose surprising box office success during the last few weeks may lead to additional conversions.
  • “For studios, it’s easy to see why spending $10 million or so to render a beloved film in three dimensions holds appeal: There’s a built-in fan base,” suggests the article. “But there are risks too: As the number of 3D films in theaters has ballooned, American audiences have become more selective about which ones they deem worth the premium ticket prices.”
  • Software improvements have made 3D conversions less expensive and, as a result, makes the prospect more difficult for Hollywood to resist.
  • Yet despite its big-name public champions such as Cameron, George Lucas and Tony Scott, there are still those who remain skeptical. The 3D conversion “undercuts the quality of the film and the verisimilitude of the film,” believes Wheeler Winston Dixon, professor of film studies at the University of Nebraska-Lincoln. “It’s to re-direct it and destroy it. This is a poor idea artistically and a poor idea financially.”
  • Either way, the movement is underway and we should expect to see more 3D “makeovers” of older films in the near future.

Disney Announces Mobile App Toys that Turn the iPad into Virtual Play Mat

  • Disney announced this week its AppMATes Mobile Application Toys that use a sensor on the bottom of each toy, which identifies the object to an iPad app (no cable or Bluetooth connection required) and creates a virtual play mat for exploration and games.
  • “The ‘Cars’ toys are meant to be driven across the top of an iPad, interacting with a downloadable ‘Cars 2’ Appmates app, which lets kids drive around courses, race and complete missions,” explains Engadget. “The app will be offered up as a free download through iTunes, and the cars will run $20 for a two-pack — the different toys unlock different features, according to Disney.”
  • “We have cracked the technology code in changing the way kids play with their toys,” said Sunny Lauridsen, director of digital toys for Disney Consumer Products. “Kids will always use toys to play out their favorite Disney stories, but Disney Appmates now allows them to include technology which has become a way of life for them through a beautifully rich app.”
  • According to the press release: “Each toy unlocks different features and content within the app specific to the character, allowing kids to come back over and over to enjoy an imaginative, open-ended play experience using the Appmates toys. Fans can download and test the app by simply using their fingers to drive a virtual car through the world, but the play experience is optimized to come to life with the Appmates toy vehicles.”
  • The toys will be available in October through the Apple Store, Apple Store online, Disney Stores, DisneyStore.com and national retailers.

Amazon to Unveil the Kindle Fire Today: First Real Competitor to the iPad?

  • Amazon is expected to announce its long-awaited Android tablet this morning at a press event in New York City.
  • The 7-inch backlit Kindle Fire is expected to launch by the second week of November, just in time for the holidays. “The iPad has many challengers, but analysts say Amazon’s could be different — it has a chance to be more than a wannabe,” reports The New York Times.
  • Amazon built its own custom version of Android, has included a streaming video service, and will feature the Amazon MP3 service and the Kindle bookstore.
  • In related news from The Hollywood Reporter, major magazine publishers — including Hearst, Conde Nast and Meredith — have signed deals to sell digital versions of their publications. One big holdout is Time Inc., but it’s being reported that a deal could be reached “hopefully by the end of the year.”
  • One publisher with an Amazon deal said: “You’ve got beauty and design with Apple, which we love. But with Amazon you have marketing, and ease of use. We’re very optimistic.”
  • Amazon’s terms seem to be similar to those offered by Apple. Publishers get 70 percent of Amazon sales while the retailer shares customer information with the publisher. But, the report notes that those numbers could fluctuate depending on the title and customer offer.
  • We’ll have more on this story following the press event…

Pandora Embraces HTML5 as Key Enabler for Connected Devices

  • Pandora now claims more than 100 million registered users. CTO and EVP of Product Tom Conrad credits the success of his company’s Internet radio service with the decision to embrace both Apple’s iOS and Google’s Android mobile operating system. Conrad spoke at this week’s GigaOM Mobilize conference.
  • However, Pandora had a rocky start regarding growth on mobile platforms until the iPhone came along to help turn things around. And at one point, Conrad had little interest in Android. Pandora shipped its app through the iTunes store and watched its user base explode from 13 million to what it is today.
  • “Conrad has also since made peace with Android, about which he had previously said that he needed the platform ‘like I need a hole in my head,’ referring to the confusing state of Android fragmentation. On Monday, Conrad didn’t want to go into the specifics of Android vs. iOS market share amongst Pandora users, but he called Android’s growth ‘nothing short of remarkable.'”
  • Now Pandora is embracing HTML5 as it looks to what’s next.
  • “The company launched a new HTML5-powered website last week, and Conrad said that using HTML5 helped to both dramatically increase the performance of the site as well as implement new social features,” reports GigaOM.
  • Conrad calls HTML5 a “key enabler for connected devices,” hoping that it will provide opportunities for Pandora on connected TVs and car dashboards.
  • Currently, 70 percent of Pandora’s listening occurs on mobile devices. “In the future, the majority of Pandora listening will happen in the car and on the connected device,” predicts Conrad.

Viewership on the Rise: Online Video Ads Reach 50 Percent of U.S. Population

  • American consumers cumulatively watched about 2.5 billion minutes of online ads in August, according to a new report released by comScore.
  • The report indicates that 86 percent of U.S. Internet users watched at least some online video content last month, and more than half of that content was accessed via YouTube.
  • Also worth noting: Facebook, already the largest photo site on the Web, was the third largest video site in terms of unique viewers.
  • The rankings “find Facebook retaining third position in August, with 51.6 million unique viewers, trailing VEVO in second (with 62 million) and Google Sites (i.e. YouTube) at 162 million,” reports TechCrunch.
  • According to comScore, video ads accounted for 13.4 percent of all videos viewed — and Hulu generated the highest number of video ad impressions (996 million in August alone), compelling figures for advertisers when you take into account that Hulu does not allow you to skip over videos.

Pegasus Global to Build Entire City in New Mexico for Technology Testing

  • Tech development firm, Pegasus Global Holdings, recently announced its plans to build a “fake” city in New Mexico for the sole purpose of testing green and next-gen technologies.
  • “The Center for Innovation, Testing and Evaluation” — which will have all the infrastructure of a fully operational city (including water, power and standard roads) — is expected to take up 20 square miles of desert and cost $200 million to build.
  • According to Pegasus Global, the city will offer a one-of-a-kind “opportunity to replicate the real-world challenges of upgrading existing city infrastructure to that of a 21st Century smart city, operating within a green economy.” The company will encourage companies and organizations to “test the benefits and costs of their proposed next-generation innovations and technologies, hardware and software.”
  • “While the specific technologies that will be developed using The Center remain to be seen, Pegasus Global has a few ideas in mind, including the ability to test the true cost of solar implementation, smart grid technology, next-gen wireless networks, Intelligent Transportation System technologies and driverless cars,” reports Digital Trends.

Hands-On Reviews: Striking New Sony DSLRs and Mirrorless Digicams

  • Digital Trends takes four of Sony’s new digicams for a test drive — a pair of 24-megapixel DSLRs (the SLT-A77 and SLT-A65) and two compact mirrorless cameras (the NEX-5N and NEX-7).
  • The 3-day test period was conducted by recording more than 1,200 stills and dozens of short videos in rugged Southern California exteriors.
  • The review speaks highly of the DSLRs: “Sony really leaped ahead with this new pair by upping still resolution, the frame rate, video quality and incorporating a high-quality OLED viewfinder. Resolution is now 24.3 megapixels, the most of any consumer camera. Even with all the pixels, the A77 cranks off 12 frames per second at full resolution; the less expensive A65 does 10. Both also capture AVCHD Progressive movies, which are a beautiful 1080p resolution at 60 frames per second, rather than 1080i.”
  • In terms of cost: “The A77 costs $1,399 for the body only and is sold with an extremely sharp constant-aperture f/2.8 16-50mm lens for around $2,000. The A65 costs $999 with a more traditional 18-55mm lens. As a comparison, the 3.7 fps 18-megapixel Canon EOS Rebel T3i is $899 with an 18-55mm lens.”
  • Regarding the mirrorless cameras, Digital Trends comments: “Although the NEX-7 still requires a final production sample test, the early taste was quite fine. This could easily be the camera of the year given our hands-on experience. The buzz among the reviewers was pretty intense. As for the NEX-5N, although it’s a nice camera, it really paled in comparison to its big brothers and sisters.”
  • Pricing for the mirrorless models: “The NEX-7 has the high-quality finder built-in on the rear top left; the view is very good. We used the camera with an f/2.0 24mm prime lens, which added a cool $1,200 to the basic $1,149 price for the body. The NEX-7 will be sold with a cosmetically-matching black 18-55mm lens for $1,349. This outfit has a very Leica-like vibe and takes some pretty spectacular images… The NEX-5N has a 16-megapixel APS-C sensor (up from 14) and costs $699 with an 18-55mm kit lens.”

The New Social Network: Should We All Be Scared of Facebook?

  • Writing for his blog Scripting News, Dave Winer offers an interesting perspective (and perhaps frightening downside) to Facebook’s new philosophy of sharing all media, all the time.
  • Since Facebook will be seeking out information on you to report on your behavior (even when you are logged out), the floodgates have opened for a range of possible negative repercussions. Winer suggests this type of “virus-like” behavior warrants “a bad name, like phishing, or spam, or cyber-stalking.”
  • “What clued me in was an article on ReadWriteWeb that says that just reading an article on their site may create an announcement on Facebook,” he explains. “Something like: ‘Bull Mancuso just read a tutorial explaining how to kill a member of another crime family.’ Bull didn’t comment. He didn’t press a Like button. He just visited a Web page. And an announcement was made on his behalf to everyone who follows him on Facebook. Not just his friends, because now they have subscribers, who can be total strangers.”
  • This type of information may ultimately be used in lawsuits, divorces and arrests. If the government did this, it would bring up Fourth Amendment issues.
  • Winer offers a solution (of sorts): “Until Facebook owns the browser we use, there is a simple way to opt-out, and I’ve done it myself. Log out of Facebook. And if Facebook had a shred of honor they would make their cookie expire, right now, for everyone, and require a re-log-in, and a preference choice to stay permanently logged-in. With a warning about the new snooping they’re doing. Probably a warning not written by them, but by Berkman, the EFF or the FTC.”