CEO Explains Netflix Will Abandon Qwikster Plans Prior to Launch

  • Netflix has announced it will drop its controversial plan to split its streaming and DVD businesses, taking recent public outcry (and negative Wall Street reaction) into consideration.
  • “This means no change: one website, one account, one password…in other words, no Qwikster,” wrote CEO Reed Hastings on the company blog and via email to subscribers. Hastings also explained that the company is “now done with price changes.”
  • Ted Sarandos, chief content officer for Netflix, told an industry crowd at MIPCOM in early October that he was “very convinced” the proposed split was “good for the long-term health of the business. And the long-term clarity of the brand.” Hastings had also been quoted as saying the split would be necessary for improving the services in moving forward. “But,” added Sarandos, “we also hear our customers, and we want to make sure we react to that.”
  • Netflix’s stock was up 6.8 percent yesterday following the announcement, giving it a market value of $6.57 billion.

Google Patent Portfolio Too Thin to Protect Against Competitors?

  • Google has a relatively small patent collection, with most of its patents related to fundamental search algorithms and technologies.
  • Looking to expand into the mobile sphere, Google purchased Motorola’s cellphone business and by extension its patent portfolio to “better protect Android from anticompetitive threats from Microsoft, Apple and other companies,” Google CEO Larry Page said.
  • However, IPVision, a patent-analyzing software company, says, “the 1,029 patents that Google bought from IBM in July contain little that the company could use to either attack its competitors or defend its own products.”
  • Google will most likely need to expand its patents into mobile software. “It’s common knowledge that Google is patent poor,” says Hoo-Min Toong, co-founder of IPVision. “Not only does it need to gain patents in their own product areas, but also in defending themselves against other claims.”

Amazon Hopes its Appstore will Stand Apart from Android

  • With its Kindle Fire, Amazon hopes to distinguish its Appstore from Google’s Android, even though the tablet’s OS is based on the 2.x version of Android.
  • “It seems that Amazon really wants to make sure that the Fire is a more curated and cohesive experience than most Android tablets,” suggests The Next Web, as is evident in the guidelines for submitting Kindle Fire applications. However, the post points out: “They’re not locking everything down though, as installation of ‘non-Appstore’ apps will be permitted without rooting.”
  • Interestingly, Amazon’s Appstore doesn’t support in-app purchasing. “Because Google’s in-app purchasing technology requires access to Google Mobile Services,” says Amazon, “it will not work on Kindle Fire. We are working on a solution that will let you sell digital content in your apps using Amazon’s merchandising and payments technology. Our solution is currently in Beta and available by invitation only.”

Cheapest Tablet Launches in India: The Aakash is Finally Here

  • ETCentric previously reported that the Indian government had been promising the world’s most affordable tablet PC for quite some time. The wait is now over, and the Aakash tablet has finally launched.
  • Running on Android 2.2 and boasting 32GB of Flash memory, 256MB RAM, two USB ports, and a 7-inch screen, the tablet will be sold to students for $35 and the general public for $50-$70 (current reports vary).
  • The Indian government is subsidizing the tablets (about $50 per tablet) to make them affordable. The student version will reportedly not feature a SIM card though, meaning that student users will need to rely on Wi-Fi for the time being.
  • The government hopes this project will help bolster India’s connectivity, which is below 10 percent penetration and limits the online potential of the nation’s 1.2 billion citizens.

YouTube is Going Hollywood: Finalizing Deals with Media Companies

  • YouTube is reportedly putting up $100 million in advances to well-known personalities and major media companies to produce original content channels on on its video site.
  • The plans include attracting major advertisers and getting higher ad rates for professional video programming. Insiders suggest that YouTube hopes to launch the channels sometime next year.
  • The Wall Street Journal reports that agreements are underway with the likes of pro skateboarder Tony Hawk, Warner Bros., News Corp.’s ShineReveille unit, BermanBraun, Fremantle Media (“The X Factor”), “CSI” creator Anthony Zuiker, and others.
  • According to WSJ: “With its channels initiative, Google — which has been under pressure to turn YouTube into a profit center since buying the site for $1.6 billion in 2006 — is aiming to position the site for the rise of televisions and cable set-top boxes that let people watch online video in their living rooms, said the people familiar with the matter. More people are also watching videos on their smartphones and tablets, pressuring traditional cable and satellite operators to make content available on smaller screens.”
  • ComScore numbers indicate YouTube had more than 600 million unique visits in September.

Researchers Convert the iPhone into Affordable Medical Microscope

  • UC Davis researchers have determined how to transform the iPhone camera into a microscope with details up to 1.5 microns using a 1mm ball lens that offers 5x magnification.
  • The team “has one-upped the competition by making the iPhone into a 350x microscope for very little money,” reports TechCrunch. “Now you’ll be able to send people Instagrams of your blood cells.”
  • “The field of view is very small and there’s distortion to deal with, but by combining the in-focus areas of several pictures you can get a clear enough image to identify cell types, make counts, or even take spectroscopic readings,” comments the article on the image capturing process.
  • The post includes compelling side-by-side images comparing a commercial microscope with the iPhone camera set-up. There is also a link to the UC Davis paper, “Cell-Phone-Based Platform for Biomedical Device Development and Education Applications.”
  • “It may not be a mobile clinic, but in areas where money and electricity are hard to come by, an iPhone could be a valuable diagnostic tool,” suggests TechCrunch.

Google+ Announces Three New Features in Response to User Feedback

  • Google+ users can now lock posts or disable comments before sharing. Previously, users could share to selected circles, but would then have to close comments after the post was made.
  • “This feature comes in response to popular user feedback, reassuring the G+ community that the platform does, indeed, have its privacy and best interest in mind,” reports The Next Web.
  • TNW also reports there is a new unread notifications number displayed on the tab bar, so that users no longer have to download third party apps.
  • Additionally, Google+ now has searchable hashtags, although the hashtag results are mixed in with regular key word findings.

Facebook Unveils New Features to Keep You from Using Other Networks

  • Facebook has announced a few new features to help users organize information and friends, “features that could, put simply, eliminate your desire to use any other social network,” reports The Next Web.
  • New Friends Lists are created automatically based on similarities in profile information (people you work with, go to school with, etc.). There is also a Close Friends list and Acquaintances as well as Suggestions that allow you to manage friends lists easily.
  • Facebook also features the Subscribe button “eliminating your desire for any other network.” Similar to Twitter’s “follow” you can subscribe to non-friends and select what specific information you’d like to receive from them (like updates, photos, and/or games). Users can post information publicly or just to friends (so subscribers won’t see).
  • Latest from Facebook, The Next Web reports in a related article, is the ability to tag non-friends in comments and posts.
  • These changes may help users to navigate information and target certain groups of friends more easily.

Networked Insights Hopes to Fine-Tune Social Data for TV Advertisers

  • Nielsen data is no longer enough for effective TV planning and buying, suggests Networked Insights, a company that “analyzes social data to uncover trends and consumer engagement opportunities.”
  • Networked Insights recently published reports that focus on the value of television viewers’ social data. One such report examined top social TV shows from FOX, NBC, ABC, CBS and CW. Viewers were grouped by TV Fans, Millennials, Gamers, Electronic Consumers, Moms and Sports Fans, while general sentiments from each group were analyzed.
  • “What’s impressive is how the company looks at specifically where ad money is being spent to analyze the conversations around the show,” reports Lost Remote. “For example, before the show even premiered, they described NBC’s ‘massive ad campaign’ for ‘Whitney’ as a ‘Social Turkey,’ and that ‘over-hyping a show is underwhelming potential fans.'”
  • Another report revealed opportunities for a Toyota Corolla TV ad to improve its digital strategies, specifying where targeted spending would be most effective. Respondents included fans of AMC’s “The Walking Dead.” The article suggests that the case study “is pretty compelling proof that social data can help you get the competitive advantage in TV planning and buying if you listen in the right places across the social web.”
  • Networked Insights recently announced $20 million in series B funding from Goldman Sachs.

Facebook Shares Designs: Will Cloud Hardware Get Cheaper and More Efficient?

  • Facebook launched its Open Compute Project as an effort to open-source the technology of its 147,000-square-foot data center that opened in Oregon in April.
  • “It published blueprints for everything from the power supplies of its computers to the super-efficient cooling system of the building,” reports MIT’s Technology Review. “Other companies are now cherry-picking ideas from those designs to cut the costs of building similar facilities for cloud computing.”
  • Although the concept of sharing designs and allowing other companies to build similar cloud-computing facilities at a lower cost may seem altruistic, it also serves as “an attempt to manipulate the market for large-scale computing infrastructure in Facebook’s favor,” suggests the article.
  • “The company hopes to encourage hardware suppliers to adopt its designs widely, which could in turn drive down the cost of the server computers that deal with the growing mountain of photos and messages posted by its 750 million users,” explains Technology Review. “Just six months after the project’s debut, there are signs that the strategy is working and that it will lower the costs of building — and hence using — cloud computing infrastructure for other businesses, too.”
  • Frank Frankovsky, Facebook’s technical operations director and a founding member of the Open Compute Project, notes that the project opens the flow of ideas necessary to improve cloud technology. He is encouraging others to contribute new ideas and improvements to the current designs.

Miramax CEO Believes Hollywood Needs Effective Strategy for UltraViolet

  • According to Miramax CEO Mike Lang, the future of the home entertainment industry and movie production rests in cloud-based digital locker UltraViolet.
  • Warner Home Video and Sony Pictures Home Entertainment are among the studios rolling out sellthrough titles this fall, which are capable of being stored on UltraViolet and then played on various compatible devices.
  • “As an industry, we really have to believe it,” Lang said in a Q&A session at MIPCOM in Cannes. “We really don’t have choice. If the home entertainment business as we know today, in terms of the transaction business, goes away, that’s not good for anyone in this room.”
  • “Lang said failure to reinvigorate the sellthrough model could adversely affect studios’ ability to finance movies going forward,” explains The Hollywood Reporter. “Sales of DVD/Blu-ray Disc/electronic sellthrough movies have historically affected whether a title was profitable or not.”
  • Lang suggests the digital transaction model has not always been clear to consumers, especially in terms of compatibility with all the available devices and different ecosystems. He points out that Netflix has been so successful due to its ease of streaming on multiple devices such as Blu-ray players and game consoles.
  • The Miramax exec believes the studios need to partner with tech companies and retailers moving forward to develop a cohesive strategy. “I don’t know how many people use photo sharing software, but that is 90 percent cloud-based,” he said. “Ninety-five percent of the software industry in the world is now through cloud-based transactions. I’m hopeful that the movie business gets there.”

Microsoft: Xbox Video Service Features Voice and Motion Controls

  • Microsoft is getting a boatload of new content for its Xbox video service intended to help it serve as a digital media hub. The company has struck deals with Comcast, Verizon, HBO and others.
  • Verizon and Comcast will be joining AT&T’s U-Verse to provide content, although while Verizon will include live video TV and video on demand, Comcast is testing the waters with its VOD library only. HBO Go streaming access will provide HBO original programming and movies from Warner Bros., Fox Searchlight and Universal Studios. Bravo, EPIX and Syfy are among the cable networks that will be available. Xbox’s international content will include the BBC, Channel 4, Channel 5 and LOVEFiLM in the UK; Antena 3, RTVE and Telefonica in Spain; and Televisa in Mexico.
  • But how do you get to the movies, TV shows, games and music that you want? Microsoft hopes you will command your Xbox with voice control, motion control and a Windows smartphone.
  • “This is incremental stuff but it’s still interesting. A source who’s played with the new service says it’s genuinely cool. Just as important, given that Microsoft has sold some 50 million compatible machines, it has (potential) leverage to do some really interesting stuff,” reports All Things D. “This is where Google TV would like to be, and it’s why Google is out pitching content guys for a relaunch this fall.”

Steve Jobs 1955-2011

You may have noticed that Apple.com’s homepage simply features a thoughtful image of pioneer and innovator Steve Jobs today. As the industry (and world) mourns the loss of a true original, we thought we’d provide you with some early comments to Steve’s untimely passing. The links below will take you to more detailed statements from those who have provided their thoughts.

  • “He changed the way each of us sees the world.” — President Obama
  • “The world rarely sees someone who has had the profound impact Steve has had, the effects of which will be felt for many generations to come. For those of us lucky enough to get to work with him, it’s been an insanely great honor. I will miss Steve immensely.” — Bill Gates
  • “His focus on the user experience above all else has always been an inspiration to me. He was very kind to reach out to me as I became CEO of Google and spend time offering his advice and knowledge even though he was not at all well.” — Larry Page
  • “Steve, thank you for being a mentor and a friend. Thanks for showing that what you build can change the world. I will miss you.” — Mark Zuckerberg
  • “He was a historical figure on the scale of a Thomas Edison or Henry Ford, and set the mold for many other corporate leaders in many other industries.” — Walt Mossberg
  • “Everything good I have done, I have done on a Mac.” — John Hodgman (PC in the Mac commercials) via Twitter
  • “People sometimes have goals in life. Steve Jobs exceeded every goal he ever set for himself.” — Steve Wozniak
  • “Steve was a teacher to anyone paying attention, and today is a very sad day for everyone who cares about innovation and high standards.” — Jeff Bezos
  • “Steve’s work made the world a better place for hundreds of millions of people.” — Marc Andreessen
  • The magic of Steve was that while others simply accepted the status quo, he saw the true potential in everything he touched and never compromised on that vision.” — George Lucas
  • “Steve Jobs was an extraordinary visionary, our very dear friend and the guiding light of the Pixar family. He saw the potential of what Pixar could be before the rest of us, and beyond what anyone ever imagined. Steve took a chance on us and believed in our crazy dream of making computer animated films; the one thing he always said was to simply ‘make it great.’ He is why Pixar turned out the way we did and his strength, integrity and love of life has made us all better people. He will forever be a part of Pixar’s DNA. Our hearts go out to his wife Laurene and their children during this incredibly difficult time.” — John Lasseter and Ed Catmull
  • “Steve Jobs was simply the greatest CEO of his generation.” — Rupert Murdoch

New Apple CEO: Inside the Mind and Philosophy of Tim Cook

  • Apple’s new CEO Tim Cook hosted his first iPhone event since taking over the company reigns in August. The Hollywood Reporter provides some interesting insight into Cook’s personality and work ethic.
  • Cook has been with Apple since 1998. Until taking over for Steve Jobs as CEO, he expertly handled company logistics and operations, serving as Mr. Inside to Jobs’ Mr. Outside, suggest the article.
  • His 18-hour workdays are legendary, even amongst Apple employees. “Cook probably gets his stamina from being a fitness buff and is said to be a fan of cyclist Lance Armstrong,” comments THR.
  • Cook is said to be more personable than Jobs was in the position of CEO, taking more time to respond cordially and even with a tone of friendliness to customer emails.
  • Under Jobs, Apple didn’t have a corporate policy matching employees’ charitable donations, but Cook changed that and now Apple will match employee donations dollar-for-dollar up to $10,000.

Apple Announces its iPhone 4S: Available October 14 Starting at $199

  • Apple CEO Tim Cook officially unveiled the company’s new iPhone 4S yesterday from Cupertino. The smartphone is expected to ship by October 14.
  • The new version features a dual core processor with up to 7x faster graphics performance, an 8 megapixel digital camera that can capture 1080P video, a GSM/CDMA radio with enhancements to speed data downloading and more.
  • The biggest news is possibly Siri, Apple’s voice-command assistant that can handle surprisingly complex commands and dictation (the name comes from a “virtual personal assistant” company that Apple purchased last year).
  • While some have expressed disappointment that Apple didn’t release the iPhone 5 this week, early reaction to the iPhone 4S features seem positive. The device’s new A5 processor, for example, is the chip used in the iPad 2, and packs an Apple-designed digital signal processor that helps with things like face detection. The phone also now supports the faster HSPA+ network.
  • The 8MP camera features backside illumination, allowing it to gather 73 percent more light and have 1/3 faster photo-snapping speed. It can also record higher-resolution 1080p high-definition video.
  • The iPhone 4S supports mirroring to a TV over AirPlay, Apple TV or a wired connection, while also packing iOS 5.
  • “The 4S will come in both black and white, starting at $199 for 16GB and $299 for the 32GB, but the big news is a new 64GB model coming in at a whopping $399,” reports Engadget.
  • Additionally, Sprint will now be offering the 8GB iPhone 4 and iPhone 4S. Sprint customers can place pre-orders for the device starting this Friday, October 7th.