AllThingsD » consumer

Lenovo Looks to Bridge Business and Consumer With New Ultra-Light and Ultrabook ThinkPads

Lauren Goode — Tue, 15 May 2012 04:01:36 +0000

ThinkPad laptops have long been associated with boxiness, durability, good battery life and a broad appeal for business users and schools.

Now, Lenovo, which bought the ThinkPad brand when it acquired IBM’s personal computer business in 2005, is stripping away some of the weight of the ThinkPad, with a new lightweight model that falls into the Ultrabook category.

The China-based PC maker is also introducing new ThinkPad X, T, W and L Series models, including the lightweight X230, and the ThinkPad X230t, a 12-inch convertible tablet that comes with a fully attached keyboard.

First, the X1 Carbon: Lenovo is claiming the featherweight title with this one, calling it the world’s lightest 14-inch professional Ultrabook. It clocks in at three pounds and, as one might expect from the name, is built with carbon fiber. It has an HD display and backlit keyboard, and is running Intel’s Ivy Bridge processors. Business users will appreciate the option to connect to 3G wireless networks via the laptop, provided that they’ve subscribed to a data plan through a carrier, for those times one needs to get work done and Wi-Fi is as unavailable as water in the desert.

While Lenovo says the laptop can be fully charged in 30 minutes, it’s unclear how long the battery charge is expected to last; and a few other details about the product — such as price and the number of built-in ports — are still unknown. The X1 Carbon Ultrabook will hit the market this summer.

Lenovo’s first entrant in the Ultrabook market, the IdeaPad U300s, which AllThingsD’s Walt Mossberg reviewed late last year, costs $1,095 and comes with a 128 gigabyte drive, 4GB of memory and Intel’s i5 processor. And at the Consumer Electronics Show in January, Lenovo showed off the $849 ThinkPad T430u Ultrabook, which is 12mm thick and weighs less than four pounds.

And then there are Lenovo’s new ThinkPad X, T, W, and L Series laptops, which also include Intel’s third-generation Core processors, Dolby audio, HD displays and ThinkPad Precision keyboards with optional backlighting. The T430s is the ThinkPad line’s lightest 14-inch (non-Ultrabook) laptop, while the T530 has a 15-inch full-HD display. But the most notable feature of these laptops is probably the addition of 4G/LTE broadband availability through Lenovo’s upcoming contract-free broadband service. The laptops will go on sale in June, and will range in price from $879 to $1,399.

A punched-up X230 ThinkPad will hit the market in June for $1,179, claiming up to 24 hours of battery life in a 12.5-inch form factor and weighing less than three pounds. This laptop also comes with 4G/LTE mobile broadband access.

If you’d rather have your X230 in tablet form, Lenovo has thought of that, too: The ThinkPad X230t has a rotating display that can be folded over to create an instant tablet. It is touchscreen enabled, comes with a stylus pen and also works with a ThinkPad laser mouse. (Lenovo has been playing with this form factor for a long time, actually. For an idea of how it works, check out this YouTube video.)

The convertible tablet (tabtop? laplet?) will start at around $1,479.

For the most part, these new entrants are still geared toward the professional market. But Tom Butler, Lenovo’s global director of product marketing, says the company is looking to appeal to consumers, too, in what Lenovo calls the “PC-plus” era. “From a ThinkPad perspective, we’re looking at the ‘consumerization’ of tech, so we’re addressing not only the IT departments but also the consumer,” he said.

Given the growing BYOD trend in corporations, it seems like a wise move. But whether workers given the option to work on their own laptops would prefer to bring in a consumer-ized Lenovo ThinkPad or a MacBook Air — or another, thinner Mac laptop reported to be on the way — is still to be seen.

Flat-Screen TV Prices: Anything but Flat

Lauren Goode — Tue, 08 May 2012 20:35:03 +0000

If you bought a new television during the first four months of this year, you may have paid more than you originally budgeted for.

That’s according to the latest TV Tracker report from IHS iSuppli, which eyes the prices and specifications of TV sets in the U.S. market.

Prices of flat-panel TVs climbed an average of $78 between December and the end of April, the report says, from an average cost of $1,119 — the largest increase during any four-month period in the U.S. TV market over the past year.

Last month, average pricing for U.S. flat-panel televisions, including LCD and plasma sets, reached $1,248, and average prices of 3-D LCD TVs in April rose 3 percent to $2,492.

The price surge contradicts reports from late last year that suggested TV prices could drop in the first half of this year.

“LED-backlit LCD panel prices will likely continue falling in 2012, but at a much slower pace than in the second half of 2011, which will slow retail price erosion,” NPD DisplaySearch said.

Part of the reason for the price surge: Features. The report notes that high-end features like Internet connectivity in “smart” TVs and LED screens have contributed to an 11.4 percent climb in flat-panel prices since December 2011.

Even if consumers weren’t actively looking to buy a fancy TV with all the bells and whistles — because as I noted during the Consumer Electronics Show this past January, some features like 3-D are taking a backseat, and consumers have been somewhat slow to adopt this technology — they may have been persuaded to buy something more expensive.

Retailers have been shifting their strategies and looking to “upsell” customers, iSuppli says.

“Retailers are working to convince buyers to move up to either a larger-sized TV or to one using LED-backlit panels,” the report says, noting that the cost of upgrading to a bigger-screen TV has been greater than the upgrade cost of going with the same-sized screen, but in LED. “The larger price premium for upgrading to a bigger TV size indicates the market was aware that buyers were willing to shell out more money to obtain larger-sized sets over a similar-sized TV model with LED backlighting.”

For consumers that have held off but are still in the market for a new TV, it’s not all bad news: In the second quarter of the year, sellers are expected to close the price gap between certain features, to maybe a 10 percent premium per feature. Which means some buyers might be able to have their big-screen smart TV and eat their 3-D LED, too.

(Photo courtesy of Flickr/Best Buy CA)

Your Smartphone as Superman: 86 Percent Use Phones for “Just-in-Time” Situations

Lauren Goode — Mon, 07 May 2012 16:39:55 +0000

Many mobile phone owners use their devices for non-urgent purposes like gaming (an addiction to Draw Something doesn’t qualify as urgent). But a huge chunk of U.S. consumers are using their cellphones and smartphones for more pressing needs — something Pew Internet Research is calling the “just-in-time” phenomenon.

A new Pew survey of more than 2,200 U.S. adults shows that 70 percent of all cellphone owners and 86 percent of smartphone owners say they’ve used their phones in the past 30 days to access immediate information, solve a problem or get help in an emergency.

The fact that cellphones and smartphones are being used as need-it-now devices really isn’t that surprising, since they put the world’s trove of information in our pockets. What’s more interesting is how those situations are categorized — something the mobile ad industry might want to pay heed to.

The majority of those surveyed — 41 percent — say they’ve used their phones for the basic task of coordinating meetings or get-togethers.

That outweighs the number of people who say they’ve used their phones to look up a restaurant (30 percent), check sports scores (23 percent) and get transit information (20 percent).

Less than one-fifth of those surveyed said they’ve used their phone in an emergency situation in the past 30 days, which is probably a good thing.

Another interesting tidbit: Despite the fact that slightly more women than men now own smartphones, as my AllThingsD colleague Ina Fried reports, men who own mobile phones are more likely than women to look up information during an argument. Some 31 percent of men admit to doing this, compared with 22 percent of women.

Could this be because women are less likely to experience memory loss? Just saying …

(Image courtesy of Flickr/Brenderous)

Silver Lake Grabs Large Minority Stake of WME to Push Digital Initiatives

Kara Swisher — Wed, 02 May 2012 17:59:41 +0000

Large private equity firm Silver Lake is buying a large stake in powerful Hollywood talent agency William Morris Endeavor Entertainment, which is being described as a way to turbocharge its digital efforts.

While the pair would not disclose any financial details of the deal, which they are calling a “strategic partnership,” sources said Silver Lake is acquiring 31 percent of WME.

“Over the years, we have been brick-building, as we have been doing more and more digitally,” said Patrick Whitesell, co-CEO of WME with Ari Emanuel, in an interview today. “But the opportunities are so vast, there is a need for more capital to do more.”

Whitesell and Emanuel said they had been considering a range of investors, especially among media entities, but that they wanted to work with Silver Lake since it had more digital experience as an active investor in technology.

Skype, for example, was the driver of the sale of Internet telephony giant Skype to Microsoft for $8.5 billion, while WME reps stars such as Matt Damon and Hugh Jackman, among others.

“In addition to capital, we really wanted a partner that to help us build it out that had more technology expertise,” said Emanuel. “We are good with brands and creative and talent, but there are many more Silicon Valley opportunities.”

In fact, WME has long tried to up its digital portfolio to respond to the needs of its clients and the changing nature of entertainment distribution as consumer Internet use has exploded. That’s included a digital advertising effort, as well as one in online gaming.

Silver Lake, which has most recently looked at investing in Yahoo, it was a chance to get closer to a trove of premium entertainment content.

“You have two forces at play, ubiquitous distribution and four billion people connected,” said Silver Lake’s Egon Durban. “As that distribution has been commoditized, the only way to differentiate is through A-plus content.”

Along with the core investment, WME and Silver Lake said they will also be considering other possible deals together as they move forward.

“There is nothing we like more than handing our best partners more money,” said Durban, who will join WME executive committee and also help create a technology advisory counsel at the firm.

Calling Marc Andreessen! Actually, in an interesting factoid, it was the well-known tech investor and entrepreneur who introduced Durban to Emanuel.

But this movie has been shown before and is not the first Hollywood-tech hookup to happen. A variety of efforts have waxed and waned over the years — most of which have largely been underwhelming.

Last year, for example, Accel Partners invested $40 million in Legendary Pictures and, back in 2008, Accel, the then William Morris Agency and AT&T formed an investment consortium to focus on Southern California start-ups.

Most closely related was the 2010 deal, in which TPG Capital took a 35 percent stake in Creative Artists Agency.

Here is the official press release on the Silver Lake-WME deal:

WME Press Release_5 02 12_FINAL

Paying With Square's New Mobile-Payments App

Lauren Goode — Mon, 30 Apr 2012 13:00:20 +0000

Over the past week and a half, I’ve purchased seven cups of coffee, three bags of beef jerky, two cookies and a pastry. With my smartphone.

It’s not a sustainable diet, but that’s what was available at the relatively few shops around San Francisco and New York City that are accepting Pay with Square and PayPal’s mobile app.

In case you’ve missed it, there’s a battle brewing over the future of mobile payments — that is, the ability for consumers to ditch the leather wallet and purchase things with their mobile phones. Companies like Google, PayPal, Square, wireless providers and credit card companies are debating various forms of mobile payment technology.

But in the battle over who gets to control your digital wallet, it’s important not to forget the consumer experience. Is it really that much easier to pay with a mobile phone than it is to just pull out cash or a credit card?

That’s what I set out to find this week, mainly using Pay with Square.

Square is a company known for creating a device for small businesses that plugs into an iPhone and can read a swiped credit card, but the company recently renamed and relaunched its app for consumers. Now called Pay with Square, the app works only at stores that are using Square’s register system for the iPad. Currently, around 75,000 merchants across the U.S. are accepting payments via the Pay with Square app.

In my experience, Pay with Square proved to be an easy, enjoyable app to use to purchase things using my smartphone — though it won’t be an everyday app for me until there are more businesses accepting it.

[ See post to watch video ]

The free Pay with Square app works with iPhone and Android phones. It used to have a wallet-like interface, but now it simply lists nearby merchants, and has a rotation of featured businesses at the top of the page.

I first used Pay with Square at a coffee shop in San Francisco. I had to link the app to my credit card account, and then upload a picture of myself; otherwise, I wouldn’t be allowed to pay. Square says this provides a layer of security on top of other standard security measures it puts in place, alongside the security your credit card company provides.

Of course, a customer could upload a picture of their cat or something, and use that as their Pay with Square image. It’s up to the merchant to decide whether it’s a good idea to accept payment from someone whose photo doesn’t align with what they look like.

Then, on the coffee shop’s page within the app, there was the option to auto-open a tab for payments. Once I indicated in the app that I wanted to open a tab, my name and photo appeared a few moments later on the cashier’s iPad register, and the cashier was able to tap on my name and charge me.

Square has been touting the idea that this app actually allows for “hands-free” payments, which means a user shouldn’t even have to take her smartphone out of her pocket in order to pay, provided that the auto-open tab is turned on. I had mixed experiences with this at shops in New York.

One shop I bought coffee at didn’t see my name right away, even though I had turned on the tab in the iPhone version of the app. I tried to buy another item using the app on a Samsung Galaxy Nexus Android phone, and my name didn’t appear at all on the list of customers in the store.

But at another downtown coffee shop I was able to walk in, place my order and say, “Charge it to Lauren Goode” — without taking my phone out of my pocket — and the transaction was completed in seconds. This worked well on both iPhone and Android.

The app has a new tilt-to-map feature that I like a lot. Tilting your smartphone at an angle turns the screen into a full map, with little red pins showing where Square-friendly merchants are. I could also tweet from within the app that I was at a shop and paying with Square, text-message the same notification, and email the store’s link to a friend.

One part of the app that I found lacking was the amount of information that some merchants list on their pages within the app. Some show addresses, phone numbers, business hours and full menus. But a couple of Square-friendly venues in the app only listed their business phone numbers or addresses, so I had to exit the app to run an additional search and find out what the business actually sold.

This past March, online payments giant PayPal introduced PayPal Here, a Square-like dongle for small businesses to accept credit card payments on a mobile phone; PayPal also has a mobile app that uses location services to recognize where a customer is. PayPal already has the advantage of a massive user base of over a hundred million and, unlike Square, it is available in international markets.

But PayPal’s triangle device for payments still hasn’t been fully rolled out yet, so locating businesses where I could test that in conjunction with the PayPal app was challenging. The company says it’s still in “beta,” so it’s unclear how many merchants are actually using the triangle.

So that’s how I found myself buying beef jerky from a merchant amid a row of warehouses in Brooklyn on a rainy day. The founder of Kings County Jerky used to use Square, but he is now using the PayPal triangle.

Once I arrived, I opened the PayPal application on my iPhone. It recognized my location and listed a couple places nearby that would take my money via my PayPal app.

Since data service on my phone happened to be particularly bad in that area, I initially had trouble dropping the digital pin within the app that’s supposed to let the merchant know I was there. The merchant also had to reboot his phone once to process the payment on his end.

But once I switched over to Wi-Fi, I had four options for paying him: Pay directly from my PayPal account through the app; handing him my credit card, which he would swipe through the PayPal triangle; and scanning my credit card. The last resort would be for the merchant to manually enter my credit card number into his phone, though he would get charged a slightly higher fee for processing my payment that way.

Mobile connection issues aside, paying through my PayPal account on the app was relatively quick and painless.

In terms of loyalty rewards and discounts, mobile payment companies are trying to make paying with a smartphone compelling, but I haven’t been using the apps long enough to glean the rewards. Square, for example, gives merchants the ability to offer purchasers 10 percent off transactions just for being repeat customers, and while Google Wallet is currently only available on five Android smartphone models, the company has partnered with name-brand retailers to offer small promotions to app users.

Paying with Square was an easy way to pay with my mobile phone and, for me, the current lack of merchants accepting it was its biggest downside. This category of technology is too young here in the U.S. to see what the real benefits — and drawbacks — will be, but consumers can likely expect to see more options to pay with their smartphones in the near future.

What Kind of Digital Consumer Are You?

Lauren Goode — Mon, 16 Apr 2012 18:55:45 +0000

iStockphoto | A-Digit

You have more than one mobile device. You read all your news online. You tweet while streaming Netflix via your connected set-top box, which you use in lieu of cable. You consider yourself an online efficiency expert, despite all the brain strain and multitasking.

You’re not that special. Turns out you might fall into a category of digital consumers just like yourself.

IBM’s new Digital Consumer report, which surveyed 3,800 adult consumers in China, France, Germany, Japan, the United Kingdom and the U.S., showed a large increase in usage of digital devices and content services over the past few years, with 78 percent of consumers calling themselves digital device adopters this past year. It also identified four distinct personalities when it comes to digital consumption:

Efficiency Expert: This is the digital consumer who uses digital devices and services to simplify things. They use the fewest devices but still access the Internet via mobile phones, send emails rather than letters, use Facebook to communicate with people, watch video on demand at home and shop online. However, some surveyed still prefer in-store shopping to online.

Content King: There’s a reason why it’s “king” and not “queen.” This category is composed mostly of males, but represents just 9 percent of the global sample. According to Saul Berman, global strategy consulting leader of IBM’s Business Services division, these digital consumers are the gamers, the newshounds, the movie buffs. “They prefer everything to be connected to their console or TV, often watch TV shows online, they regularly download their media and play games with people online,” Berman said.

Social Butterfly: Some 15 percent of consumers surveyed reported that they frequently maintain and update social-networking sites. This group has a strong female skew, with a high frequency of digital consumption. They might own fewer devices, but they maintain more social-networking profiles, they visit these sites several times a day, they’re “tagging” others on sites, and they’re often viewing what friends are posting.

Connected Maestro: This group is indicative of where the future is headed, Berman believes. About 35 percent of those surveyed take a more advanced approach to media consumption by using mobile devices and smartphone applications to access games, music and video, or to check news, weather and sports. They use instant messaging. They own the greatest variety of digital devices, and they combine some of the behavior of a Content King and a Social Butterfly. This group also has a slightly male skew and, as Berman said, “the majority of this group say they now read digital books over printed ones.”

Interestingly, the study notes that age is no longer the most distinct segmentation when it comes to putting digital consumers into boxes. A full 82 percent of digital adopters are now between the ages of 10 and 64. “Contrary to popular belief, not all early adopters are college age; in actual fact 65 percent are aged between 55-64,” the study notes.

“Making tech simple for that audience is a key factor,” Berman said, “and they’ve seen the benefit in potential by watching people who were the initial early adopters.”

That still doesn’t necessarily mean you’re off the hook in terms of setting up printers and fixing the Internet when you’re visiting home for the holidays.

Readers: Which category do you fall into?

(Image: iStockphoto | A-Digit)

FaceTagram? InstaBook? Whatever You Call It, All Your Mobile Photo Are Belong to Facebook (for $1 Billion)!

Kara Swisher — Mon, 09 Apr 2012 19:20:59 +0000

If you want a quick analysis of why Facebook would pay $1 billion for popular photo-sharing service Instagram, please ignore the obvious financials that just don’t add up at all and have most of the typically unshockable digerati shocked by the sheer amount of the price.

Actually, it’s pretty simple: Photos. Photos. And, oh yes, mobile photos — lots and lots and lots of them.

Astonishingly, Facebook users already upload an average of more than 250 million images daily, making it the most popular photo-sharing service on the Web.

But it’s not the best by far and not the most mobile, which is Facebook’s biggest weakness — that has been accomplished many others, especially Instagram, the favorite of power users who scoffed at Facebook’s weak tools. (The horror of no filters!)

Now — instead of all those billions of juicy digital photos snapped by an ever-growing legion of smartphone users loading up to the beautifully designed Instagram mobile app and living on the servers of the small San Francisco-based start-up — Facebook has now captured all these memories for its massive social networking site.

And while $1 billion seems an awful lot to pay for that privilege — Twitter is quaking with “OMG!” and “Wow!” and “WTF!” tweets about the acquisition — this is apparently priceless for Facebook in a deal that went down quickly and quietly in recent weeks.

That and the fact that the huge sum prevented Instagram from being scooped up by Google.

It’s a clear signal from CEO and co-founder Mark Zuckerberg — who rules all product efforts at the company — of his intent to dominate all innovations that have to do with owning the social experience.

Because while many Instagram photos quickly made their way onto Facebook — sharing on the service, as well as on Twitter, was a big part of the app’s offering — the future of the Menlo Park, Calif.-based company is tied to having control over key elements of the user experience.

Of all of those — communications, status updates, content linking — it has been photos that have become perhaps the most important part of Facebook, almost since its beginnings.

Photos are what allowed Facebook to grow so quickly and what made it more than just a blue sea of text and links to consumers. Its new Timeline depends on big, pretty photos, and Facebook even recently announced that it would allow full-screen viewing of high-resolution photos on its Web site, a pricey endeavor.

So, perhaps it was inevitable that Zuckerberg would pay up for Instagram, too — he knows a good entrepreneurial success when he sees one and apparently has the power to convince start-ups that he can make their bigger dreams come true.

Whether or not Instagram ever makes money is perhaps beside the point at this moment in time, as Facebook is poised to go public at 100 times the amount it forked over for Instagram.

But that it considers such a purchase worth as much as one percent of its expected valuation says a thousands words. And most of those words are “mobile” and “photo.”

As Ben Jacobs noted on Twitter: “Kodak goes bankrupt and Instagram is worth a billion dollars. 2012, y’all.”

Indeed. And, I have no doubt if Zuckerberg could figure out a way to shove all those Kodak moments from analog snapshots onto Facebook easily, he’d have paid up for that, too.

Clicking on a Fortune: Facebook to Acquire Photo-Sharing Start-Up Instagram for $1 Billion

Kara Swisher — Mon, 09 Apr 2012 17:03:43 +0000

Facebook has just announced that it will acquire Instagram, the popular mobile photo-sharing service, for $1 billion in cash and shares.

The social networking giant posted on the acquisition, its biggest yet, on its site, as well as on CEO and co-founder Mark Zuckerberg’s Timeline on Facebook.

Photos are critically important for Facebook, which has been slow to innovate in the fast-growing mobile arena in the important consumer space. By contrast, Instagram has taken the arena by storm, with its delightful and elegant app and the motto, “Fast beautiful photo sharing.”

Consumers have responded (including me — it is the only non-communications app I use many times a day). The San Francisco-based company — with only 13 employees — had 30 million Apple iPhone users before it came to Google’s Android last week, where it got more than a million new users in just 12 hours.

Still, despite all the usage, Instagram had not articulated a plan for, you know, making money. Now, that will presumably be Facebook’s problem to solve.

The Facebook acquisition has been kept very quiet, with its CEO Kevin Systrom working on it in conjunction with new fundraising efforts that would have valued the company at $500 million. Liz Gannes reported on this effort last week, which was poised to close, in fact, before the Facebook deal was struck over the weekend.

Until now, Instagram has received Series A funding of $7 million led by Benchmark Capital just over a year ago, when it only had 1.75 million registered users.

Seed investors include Andreessen Horowitz — which did not follow on later — and Baseline Ventures. Also in the Benchmark round: Twitter creator Jack Dorsey, former Facebooker Adam D’Angelo and Chris Sacca.

In a blog post titled “Instagram + Facebook,” Systrom promised no change, except for the $1 billion mountain of cash:

“It’s important to be clear that Instagram is not going away. We’ll be working with Facebook to evolve Instagram and build the network … The Instagram app will still be the same one you know and love.”

Zuckerberg also promised that Facebook would keep Instagram independent, and that such a large purchase would be rare for the company, which is set to go public soon.

“This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users,” he wrote. “We don’t plan on doing many more of these, if any at all.”

Here is the full press release from Facebook:

Facebook to Acquire Instagram

MENLO PARK, CALIF. — April 9, 2012 — Facebook announced today that it has reached an agreement to acquire Instagram, a fun, popular photo-sharing app for mobile devices.

The total consideration for San Francisco-based Instagram is approximately $1 billion in a combination of cash and shares of Facebook. The transaction, which is subject to customary closing conditions, is expected to close later this quarter.

Mark Zuckerberg, founder and CEO of Facebook, posted about the transaction on his Timeline:

I’m excited to share the news that we’ve agreed to acquire Instagram and that their talented team will be joining Facebook.

For years, we’ve focused on building the best experience for sharing photos with your friends and family. Now, we’ll be able to work even more closely with the Instagram team to also offer the best experiences for sharing beautiful mobile photos with people based on your interests.

We believe these are different experiences that complement each other. But in order to do this well, we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook.

That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.

We think the fact that Instagram is connected to other services beyond Facebook is an important part of the experience. We plan on keeping features like the ability to post to other social networks, the ability to not share your Instagrams on Facebook if you want, and the ability to have followers and follow people separately from your friends on Facebook.

These and many other features are important parts of the Instagram experience and we understand that. We will try to learn from Instagram’s experience to build similar features into our other products. At the same time, we will try to help Instagram continue to grow by using Facebook’s strong engineering team and infrastructure.

This is an important milestone for Facebook because it’s the first time we’ve ever acquired a product and company with so many users. We don’t plan on doing many more of these, if any at all. But providing the best photo sharing experience is one reason why so many people love Facebook and we knew it would be worth bringing these two companies together.

We’re looking forward to working with the Instagram team and to all of the great new experiences we’re going to be able to build together.

Beauty-in-a-Box Company Birchbox Will Ship Lifestyle and Tech Products for Men

Lauren Goode — Mon, 09 Apr 2012 14:45:54 +0000

A New York start-up that has been building a business on oversized samples of beauty products for women is now turning to the other team, with deliveries of grooming products, lifestyle goods and consumer-tech gadgets for men.

Birchbox.com, a subscription service that ships monthly mystery boxes containing a handful of beauty products for $10, has just launched a men’s section of its Web site. Now, guys can sign up and, for $20 a month, get their own “Birchboxes.”

While most of these boxes will be comprised of items like shaving cream and socks, the brains behind Birchbox plan to add a fair share of tech in there, too, after a pilot Birchbox project for men that included Skullcandy headphones was well-received.

Products shipped in the boxes will include RumbaTime watches, Pokket Mixers and detachable Bookman Lights, Birchbox says, with more lifestyle and gadget-y items planned for the future.

Birchbox has nabbed about a hundred thousand subscribers since its launch in September 2010. It also snagged $1.4 million in seed funding from Accel Partners and First Round Capital just a month after its launch.

Co-founder Katie Beauchamp, who launched the company with Harvard Business School bud Hayley Barna, says the company is growing — and not just in subscribers. Birchbox also has an e-commerce portal where an estimated 40 percent of box subscribers go on to buy full-sized products. E-commerce revenue is now six times what it was a year ago, Beauchamp says.

In addition to the e-commerce portion of the Birchbox Web site, Beauchamp and Barna have hired eight writers to come up with product-specific content that supplements what’s in a Birchbox. By including limited descriptions and how-tos in the boxes, the crafty company wants to drive more people to that content online.

As someone who has received a couple of Birchboxes containing stuff that left me scratching my head, I can attest to the fact that some products do require additional explanation. The items shipped are determined by the company and can’t be hand-picked by the subscriber, though Birchbox says the company is getting better at personalizing the Birchboxes based on info provided by subscribers.

It’s an interesting model, one that has seen a fair amount of copycatting, and one that Beauchamp describes as more of an e-commerce “discovery” model rather than a traditional e-commerce business.

Exclusive: Yahoo's Chief Product Officer Blake Irving Resigns

Kara Swisher — Fri, 06 Apr 2012 01:28:26 +0000

According to sources close to the situation, Yahoo’s Chief Product Officer Blake Irving has turned in his resignation and it has been accepted by the company.

The process for Irving’s departure is a bit more formal since he is a top officer at the Silicon Valley Internet giant. But it is perhaps not that surprising, given that a brunt of the 2,000 employee layoffs at Yahoo yesterday were in his part of the organization.

Irving has not been at Yahoo this week during those wrenching cuts — that’s because the resignation has been in the works for some time.

In fact, in a restructuring to be announced next week, the central product organization at Yahoo he runs was essentially blown up, with the development moving back into media, sales and consumer products units being planned.

In addition, Yahoo’s new CEO Scott Thompson has been contemplating selling off large parts of the company’s advertising technology platforms, as well as its search business, also now under Irving.

Irving had largely opposed the strategy that Thompson has been aiming toward, said sources, and also strongly disagreed with laying off so many employees without a clear plan in place. Many inside and outside Yahoo agree.

He was also apparently concerned about the massive engineering and research talent exodus of late, especially in Yahoo’s vaunted Labs arm, which suffered major cuts in the layoffs.

The former Microsoft exec has no plans for another job, said sources, but has had a number of offers.

Yahoo confirmed the resignation when I called to ask about Irving’s goodbye. “Yahoo wishes him all the success in the future,” said the spokesperson.

Irving came to Yahoo in mid-2010 under former CEO Carol Bartz, who was fired last fall. Under his leadership, the product unit had focused a lot on creating a major publishing platform for Yahoo and other media companies. He debuted its Livestand content app earlier this year.

Here is a video interview I did with Irving in happier times, talking about Yahoo products, in which he sported a very handsome blue cashmere sweater:

[ See post to watch video ]

It's Official: Yahoo Lays Off 2,000 Employees -- 14 Percent of Workforce

Kara Swisher — Wed, 04 Apr 2012 13:22:13 +0000

In a move that AllThingsD had previously reported was coming, Yahoo said it had laid off 2,000 employees, or 14 percent of the workforce.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require,” said Yahoo CEO Scott Thompson in a statement. “Unfortunately, reaching that goal requires the tough decision to eliminate positions.”

While Yahoo has had periodic layoffs over the years, this one is its most significant in its history, and will also result in another large-scale restructuring of the management organization. More cuts are also likely to follow in the months ahead, due to the reshaping of Yahoo.

The latest employee action is being pushed by Thompson, who joined the Silicon Valley Internet giant in January from eBay’s PayPal unit.

“Change is never easy,” he wrote in an internal email to Yahoo employees (it is below in its entirety), in a well-worn cliché I am dead certain few appreciated hearing today from the top leader.

At an internal meeting with top staff last night, Thompson — who has gotten what seems to be a well-deserved reputation for chewing folks out at Yahoo — was more direct with the execs gathered, berating them extensively for not delivering and getting the company to this sorry point.

Ouch, Scott! It’s Easter, so it might be time for some forgiveness. (And no more ranting about my reporting to those inside Yahoo, since I have been 100 percent accurate so far. FYI, will aim for 110 percent next week!)

Yahoo said it will save about $375 million with the cuts, incurring a $125 to $145 million pretax cash charge for employee severance in its second quarter. Before the cuts, Yahoo had 14,000 staffers and has many thousands more hired as contractors.

The layoffs touch all units of the company, but the hardest hit is the product division, which is headed by Blake Irving, as well as its marketing, research and international units. Yahoo gave no details on the layoffs other than the number.

But the fate of two key parts of the soon-to-be-blown-apart unit — Yahoo’s advertising technology businesses, Right Media and APT, and its search business — is still being contemplated, as I have previously reported. Possible scenarios include a sale or a joint venture transaction for both, which employ thousands of Yahoo staffers.

The layoffs tomorrow are not the end of the road in cutting costs. Along with the likely shedding of its ad tech and search businesses, Yahoo leadership is also looking at future cuts as it evaluates current businesses, which could lop even more employees off its roster.

That said, Yahoo will be doubling down in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

As wrenching as they will be today at Yahoo, the layoffs come as no surprise. Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

Along with the trauma of the layoffs, Yahoo is also facing two other tense face-offs externally. In one, activist shareholder Third Point is waging a proxy fight for board seats and stepped up the public pressure this week; and Facebook struck back hard at Yahoo’s patent lawsuit with a counterclaim of its own.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week. Thompson, along with outside consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said that Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Americas head Ross Levinsohn is pegged to run the media arm, which will also include its leads/commerce businesses, such as autos; Shashi Seth — who now heads search and marketplaces — is likely to run consumer products, which will include Yahoo’s communications and search businesses.

Yahoo has already been conducting a search for a new worldwide sales head, who will also be boss of the U.S., Asia and Europe, Middle East and Africa sales regions. Rich Riley, who was recently running EMEA, is reportedly the pick for U.S. sales; Rose Tsou, who is running Asia, would presumably stay put; Yahoo is looking for an EMEA sales lead.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

One big question mark is how Chief Product Officer Irving fits in the possible new org, in which the new units get control of their product development. Irving has reportedly had several incoming job offers, although it is not clear if he has responded to that interest.

But today, the focus is on the layoffs and letting go all those employees, many of whom have worked at Yahoo for years. Even if it will result in a stronger Yahoo, as Thompson promises, it is still a very sad day in Sunnyvale.

Here is a video on the topic that I did with the WSJ.com “Digits” show today, after the cuts were announced early this morning:

Here’s the entire terse statement from Yahoo:

Yahoo! Statement

SUNNYVALE, Calif. — (BUSINESS WIRE) — Yahoo! today confirmed that it is taking important next steps to reshape the company for the future.

“Today’s actions are an important next step toward a bold, new Yahoo! — smaller, nimbler, more profitable and better equipped to innovate as fast as our customers and our industry require. We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first — and we are moving aggressively to achieve that goal,” said Scott Thompson, CEO of Yahoo!. “Unfortunately, reaching that goal requires the tough decision to eliminate positions. We deeply value our people and all they’ve contributed to Yahoo!.”

Yahoo! has a solid foundation — nearly 700 million users and thousands of advertisers that engage with Yahoo! properties regularly and trust the company with their data and their business. Through its restructuring efforts, Yahoo! intends to grow by responding more quickly to customer needs and competing more effectively in areas where it can win. Yahoo! has identified key parts of the business — a select group of core businesses, the platforms that support those core businesses, and the data that drives deep personalization for users and ROI for advertisers — where the company will intensify efforts and redeploy resources globally, all focused on increasing shareholder value. With a clear focus on profitability and growth, the company will be disciplined in its investments and radically simplify how it builds, launches and maintains many of its properties and products.

Today, the company will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or phased transition.

Yahoo! expects to realize approximately $375 million of annualized savings upon completion of all employee transitions. The company currently expects to recognize the majority of an estimated $125 to $145 million pretax cash charge relating to employee severance in its second quarter financial results. The company may incur additional charges in connection with this action. More information will be provided about Yahoo!’s future direction in conjunction with the release of its first quarter financial results on April 17, 2012.

And here is Thompson’s memo to employees, stating the obvious and with nothing new from previous statements and internal memos:

Yahoos –-

Today we are restructuring Yahoo! to give ourselves the opportunity to compete and win in our core business. The changes we’re announcing today will put our customers first, allow us to move fast, and to get stuff done. The outcome of these changes will be a smaller, nimbler, more profitable Yahoo! better equipped to innovate as fast as our customers and our industry require.

Over the last 60 days, we’ve fundamentally re-thought every part of our business and we will continue to actively consider all options that allow Yahoo! to put maximum effort where we can succeed. As part of this process, I believe we have to focus to win in a select group of core businesses globally:

Core Media and Communications: Our content, media, and communications experiences must be best in class. That includes getting today’s core properties right and innovating on a next generation of great product experiences across all screens.∙

Platforms: We must make our core platforms and systems a genuine strength for Yahoo! — platforms that we can really leverage to support our massive scale, drive the deepest personalization, and boost speed to market.∙

Data: Our massive data sets must become a genuine competitive advantage for Yahoo!. We have to unlock the value in our data to allow us to really understand our 700 million users, encourage and win their engagement and trust, leverage everything they do with us to more fully personalize their experiences, and to give our advertisers the immediate insights they are rightfully demanding.

We are intensifying our efforts on our core businesses and redeploying resources to our most urgent priorities. Our goal is to get back to our core purpose — putting our users and advertisers first -– and we are moving aggressively to achieve that goal.

Unfortunately, reaching that goal requires the tough decision to eliminate jobs, which means losing colleagues and parting with friends. Today, we will begin the process of informing employees about these changes. As part of that effort, approximately 2,000 people will be notified of job elimination or a phased transition. We value our people and for those who will be leaving, we thank you for all you have contributed to Yahoo!. We will treat all of our people with dignity and respect, providing resources to help manage through their transition.

Change is never easy. But the time has come to move Yahoo! forward aggressively with increased focus and accountability. Our values have always been about treating all Yahoos with dignity and respect, and today is a day to embrace those values. This is an amazing company with exceptionally talented people and I know we will all do our best to encourage each other through this difficult period of transition.

Scott

Yahoo's Layoffs Tomorrow Morning of up to 2,000 Will Only Be the First Move of a Larger Purge to Come

Kara Swisher — Tue, 03 Apr 2012 22:16:46 +0000

According to sources close to the situation, Yahoo’s massive round of layoffs — which is likely to impact up to 2,000 employees — is just the tip of the proverbial iceberg that will hit the storied Silicon Valley Internet giant in the months to come.

Sources said Yahoo is currently planning to announce the cuts in staff in the early morning, just as the markets open. That could change, of course, but the cuts will definitely occur within the next two days.

The layoffs, which will touch all units of the company, are expected to hit hardest in the product division, which is headed by Blake Irving.

Also set to be hard hit are Yahoo’s local businesses, as well as its marketing and research divisions. While still sustaining losses, its media units will not be as badly impacted. And it’s not clear how many employee terminations will be aimed at the company’s general and administrative staff.

That said, Yahoo will be “doubling down” in some older and new arenas, so there would also be simultaneous hiring in the months ahead.

But not tomorrow, which will be one of the tougher days in Yahoo’s long history of periodic layoffs. Newly installed CEO Scott Thompson had told employees in memos and also in recent meetings that “real change” was coming to the company.

That is indeed the case, which is causing massive strain throughout the company, which now employs over 14,000 and has many thousands more hired as contractors.

After the layoffs tomorrow, sources say Yahoo will be announcing a new organization by next week, which will create several major, soup-to-nuts units at the company. Thompson, along with consultants he has hired from the Boston Consulting Group, are making what appear to be profound changes.

Sources said Yahoo will most likely be comprised of a global media division, one that encompasses Yahoo’s consumer products businesses and one focused on global and regional sales. There could also be a small organization of about 50 employees aimed at future innovation.

Some current operational execs — such as service engineering and ops head David Dibble, CFO Tim Morse, and top lawyer Mike Callahan — are likely to continue to operate as before.

Let’s hope that Yahoos who will be let go tomorrow find themselves with many new employment choices after the ax falls.

Yahoo Sues Facebook for Patent Infringement, Which Social Network Calls "Puzzling" (Including Filing)

Kara Swisher — Mon, 12 Mar 2012 20:15:52 +0000

In what is either the boldest gamble of its history or the most boneheaded, Yahoo has filed a massive patent infringement lawsuit against Facebook.

The attack by the Silicon Valley Internet icon against perhaps the most powerful consumer social networking site today — also based in tech’s heartland and also an important partner of Yahoo — is sure to be a controversial one, pitting Yahoo against a company that has surpassed it handily in recent years in regards to popularity among consumers.

“Facebook’s entire social network model, which allows users to create profiles for and connect with, among other things, persons and businesses, is based on Yahoo’s patented social networking technology,” Yahoo’s lawsuit reads, in part.

That includes, Yahoo alleges, Facebook’s popular News Feed, advertising methods, privacy settings and more. The company adds that Facebook has been “free riding” on Yahoo’s intellectual property and that royalty payments alone will not suffice.

So what does Yahoo want for this alleged free ride? Triple damages and to enjoin Facebook from operating by using said patents.

The 19-page lawsuit over 10 patents — related to advertising, privacy, customization, messaging and social networking — comes as Yahoo is seeking to right itself under new CEO Scott Thompson.

Multiple sources said he is primarily driving this new aggressiveness from Yahoo.

Since Yahoo told the New York Times that it was considering such a move last week, the issue has been widely debated within the company, with many top techies there opposed to it, due to the company’s longstanding ethos of using patents for defense rather than offense.

Thus, the decision to move was closely held, sources said, with only Thompson and legal chief Michael Callahan largely working on it.

Still, patent lawsuits have become ever more prevalent among tech companies, as they seek to battle for advantage in a rapidly changing competitive landscape. Apple, Google, Microsoft and others are involved in several legal actions, although they are largely related to mobile technology.

Yahoo’s lawsuit is the most prominent in the social networking arena, a sector that has seen a huge explosion of late. Its timing could not be worse for Facebook, since it is in a quiet period for its upcoming IPO, which is expected to value the company at close to $100 billion.

Yahoo has done this kind of thing before, of course, having wrangled with Google until right before it went public in 2004 over search patents from its Overture acquisition. The pair settled 10 days before the Google IPO, with Yahoo getting several million more shares of that stock.

Yahoo is shaking Facebook down for much more here and with much higher stakes for both companies. If successful, Yahoo could seriously damage Facebook’s initial public offering; if not, Yahoo will cement its growing reputation as a company with nothing to lose, whose value is built not on its current business, but on non-operating assets.

More importantly, at least initially, the move did nothing to boost Yahoo’s moribund shares — the stock was down about one percent to $14.49 in after-hours trading.

More to come, but here is the entire document below. The lawsuit has been filed in San Jose, Calif., federal court.

Lastly, the official PR back-and-forth:

Said Yahoo, in its statement:

“Yahoo! has invested substantial resources in research and development through the years, which has resulted in numerous patented inventions of technology that other companies have licensed. These technologies are the foundation of our business that engages over 700 million monthly unique visitors and represent the spirit of innovation upon which Yahoo! is built. Unfortunately, the matter with Facebook remains unresolved and we are compelled to seek redress in federal court. We are confident that we will prevail.”

Facebook, obviously, disagrees, and also threw in a jab about the lack of discussions over the issue between the pair:

“We’re disappointed that Yahoo, a longtime business partner of Facebook and a company that has substantially benefited from its association with Facebook, has decided to resort to litigation. Once again, we learned of Yahoo’s decision simultaneously with the media. We will defend ourselves vigorously against these puzzling actions.”

I’ll admit to also being puzzled about the strategery here, but I am sure there will be much more to come.

Until then, read on:

Complaint

And here is what I wrote last week on the subject:

Apparently, Yahoo’s new motto: If you can’t beat ‘em — and it can’t — sue ‘em.

That would be Yahoo — the perpetual 98-pound weakling of the Internet these days — threatening powerful Facebook, which had cleanly bested it by attracting hordes of users with a plethora of popular products and services.

Yahoo has already lost its audience to Facebook, which was most recently followed by its frittering away a commanding lead in display advertising, too.

That would also be the Yahoo whose most recent success in improving its increasingly tenuous connections with customers was, in fact, by deeply integrating Facebook’s social hooks into its Web properties.

That would be the Yahoo which has failed time and again to innovate its own offerings so drastically over the years that it has now apparently decided that its first and best strategic move under Thompson’s rule is a shakedown.

Such a cynical move on rights Yahoo has long held seems more a play for the cheap seats of Wall Street, given that the company needs to look like it is doing everything it can to turn things around right now as it faces a proxy challenge.

First, it ended difficult talks with its Asian partners, Alibaba Group and SoftBank, over selling back lucrative stakes there.

Now, according to sources, Yahoo’s Thompson has actually been trying to make very nice with activist shareholder Daniel Loeb of Third Point — on-the-down-low chitchats that might have played a part of this latest unusual move.

At least Kodak had a good excuse. The once iconic camera company had recently been trying to take advantage of its trove of patents as a way to stave off declaring bankruptcy.

That didn’t work for Kodak, and it will also not work for Yahoo, whose only real option is to try to innovate its way out of the mess it has landed itself in.

You know, with good ideas.

Instead, the company’s leadership has opted for a road that could rain down trouble and paint Yahoo as a company bereft of talent to win any other way.

And while a range of intellectual property lawsuits have broken out all over the digital sector, involving Apple, Microsoft, Google and many others, such a strategy for Yahoo could be dangerous if it fails in its legal effort to take advantage of its 1,000-plus patents, including those related to search and advertising.

Others — including such tech luminaries as LinkedIn’s Reid Hoffman, who co-owns the seminal Six Degrees patent for constructing a networking database and system — hold a number of critical social networking patents, too, so who knows where this thing will go.

Nonetheless, Yahoo has decided to emulate those companies with one of the few valuable assets it might have, waging its little war, right as Facebook is in the midst of its initial public offering period.

Yahoo has done this before, of course, having wrangled with Google until right before it went public in 2004 over search patents from its Overture acquisition. The pair settled 10 days before the Google IPO, with Yahoo getting several million more shares of that stock (which it then, of course, sold too soon).

That certainly could happen here, with Yahoo managing to grab a chunk of Facebook’s pre-IPO stock.
That would mean that Yahoo’s most valuable asset would be those shares, as well as its stake in Asian companies it bought a while back for a bargain and now makes up a bulk of the company’s valuation.

As to Yahoo’s core business — investors consider it almost entirely worthless.

And let’s not forget: Facebook could also sue right back, which it very well might do. Or, perhaps, cut off agreeable ties that have aided Yahoo in recent years.

In other words, in poking Facebook, Yahoo might now learn what it is really like to be de-friended.

We're Expanding: All Things Digital Would Like You to Meet All Things Reviewed

Kara Swisher — Sun, 11 Mar 2012 18:51:17 +0000

Tomorrow, as part of the commitment that AllThingsD has to providing its readers with ever more high-quality content, this site will be launching a new reviews section, All Things Reviewed.

Simply put, we’re building on the consumer-tech reviews by Walt Mossberg and Katie Boehret that we’ve always run, with a fresh team of ATD reviewers, the first of whom is the talented Lauren Goode.

Lauren will be joined in the coming months by additional strong reviewers, who we will be adding soon, and each of whom will likely do one meaty review a week.

Katie, who will continue as a columnist at The Wall Street Journal, will also take on the added task of editing the new All Things Reviewed section, which we designed to be bright and graphical and easy to navigate.

We’ll also have plenty of timely, interesting consumer product news in addition to the in-depth reviews. It will all be integrated into the main ATD site, too, because we consider it a key part of providing a range of news, information, analysis and context to those who come to us for trustworthy, fair and accurate journalism.

Make no mistake: We think it is critical that reviews adhere to the same strict tenets of reporting we have for everything we post here. The reviews of the products we will feature take time, rigorous testing and deep critical analysis.

And, like Walt’s and Katie’s current reviews, these new ATD reviews will be based on thorough testing and aimed at smart consumers — and not just techies and enthusiasts.

That’s why we will pick carefully which products are significant or might be interesting to a broader range of readers. In other words, we won’t be reviewing every single slightly changed phone or laptop, or every me-too location app, and we won’t bore you with chip speeds and technobabble.

Thus, as hard as it is to say to the geeks who follow us, we will shun the rigid spec lists and templates used elsewhere, and instead present you with holistic, experience-based reviews that tell the story of the product — hardware, software, apps, games, Web sites and services.

Most importantly, we won’t be afraid to point out negatives, even if the manufacturer is an advertiser. Our aim is to earn your trust and be on your side, even if you disagree at times with our conclusions.

Like all new endeavors, we hope to get the entire section up to cruising speed as soon as possible, but we’ll be doing it in the careful, considered and high-quality manner we strive for in everything we do. (And, like all new stuff, we also had a party introducing the section to a packed crowd at the SXSW Interactive festival last night.)

We hope you’ll like the result and welcome your feedback as we begin our latest expansion. And, as usual, there will be much more to come.

Exclusive: Amid Layoffs in AOL's AIM and Mail Ranks, Top Execs Shellen and Van Miltenburg to Also Depart

Kara Swisher — Fri, 09 Mar 2012 03:02:16 +0000

According to sources, AOL will be announcing that it is making cuts of up to 40 employees in its communication products teams, specifically its AIM instant messaging and AOL Mail units. As part of the changes, its SVP of business operations, Eric van Miltenburg, and AIM head Jason Shellen will be leaving.

[UPDATE: AOL confirmed those moves to be several hours after this post appeared.]

Shellen is a particularly high-profile departure, having sold his start-up Thing Labs, maker of the Brizzly family of Web-based social software, to AOL in 2010. The Thing Labs team, headed by the Google and Blogger vet, had been integrated into AOL’s AIM and other similar offerings.

Van Miltenburg, a former Yahoo exec, had headed up business operations for the now-shifted consumer applications unit.

The departures are among a number of exits by AOL execs who had come to the New York-based Internet company, which has struggled to turn itself around in recent years under CEO Tim Armstrong. The company is now facing a challenge from an activist shareholder, one of the reasons for a renewed focus on cost-cutting and other restructuring.

Poll: Will You Buy the iPad 3? (Plus, Cool Concept Video.)

Kara Swisher — Sat, 03 Mar 2012 15:00:15 +0000

Apple is expected to unveil its latest iPad next week at an event on ~~Thursday~~ Wednesday in San Francisco.

It’s not clear when the newest iteration of the popular tablet device — the iPad 3 — will be available to consumers, but here’s a poll you can take to register your interest in it (or not!)

Also below, the really cool iPad concept video from Aatma Studios that got a lot of look-sees last week.

View This Poll

Users Rip AT&T Data Curbs

Anton Troianovski and Greg Bensinger — Sat, 03 Mar 2012 07:30:06 +0000

Wireless carriers are getting increasingly forceful in their efforts to pitch mobile bandwidth as a scarce, valuable commodity — setting up a battle with consumer groups that support open-Internet rules and longtime customers who treasure their unlimited data plans.

Among U.S. carriers, AT&T Inc. is leading the charge. Its latest scuffle came on Friday, a day after the country’s second-largest wireless company said its 17 million customers who subscribed to unlimited-data plans will see much slower speeds if they exceed a new monthly usage cap.

Read the rest of this post on the original site

Yahoo Product Unit Readies Major Exec Reorg -- But It's Just a Tremor for the Big One to Come

Kara Swisher — Mon, 13 Feb 2012 00:14:14 +0000

Yahoo’s massive product unit is readying a major reorganization, which will include a new structure, a move that is being spearheaded by its Chief Product Officer, Blake Irving.

But the ground under Irving, as well as several of the Silicon Valley Internet giant’s top execs, is about to get shakier too, due to a wide range of changes now being plotted by newly installed CEO Scott Thompson.

While still in the early stages of formulation, sources said Thompson has been mulling bringing in a head of global advertising sales or revenue chief, as well as more top product execs, as he moves to initiate a plan to shake up Yahoo and also put his own stamp on the company.

Layoffs and possible wholesale abandonment of certain businesses Yahoo is currently in are likely to be parts of this larger plan.

Confused yet? So am I, but let’s sort through all the latest activity.

First, there’s the Yahoo product redo, which has been in the making for a while, well before Thompson arrived last month.

Under the new plan, which is described as “an evolution rather than blowing up the place,” Yahoo’s famously matrixed product unit could be split into three distinct areas: Monetization, which is expected to be headed by longtime exec Mark Morrissey; platform, with cloud dude Jay Rossiter in charge; and consumer-facing products, possibly in the hands of search kingpin Shashi Seth.

The idea behind the latest setup, presumably, is to spur innovation and make it easier for Yahoo to spit out products more quickly. Its recent Livestand tablet app, for example, was late to the game and continues to struggle to gain any real ground, said sources.

Overall, Yahoo still continues to lag behind other Internet rivals in a number of product arenas, for reasons that Thompson is delving into.

The way products are made got a long look-see this past week, in a day-long meeting that Thompson had with Yahoo’s top team execs. Thompson reportedly quizzed the group on its plans, and pressed it to look less at short-term features and maintenance than on finding the next great thing.

“I think it’s fair to say that Scott is wondering why Yahoo did not come up with innovations like Pinterest and Instagram,” said one person about hot new start-ups that are in the sweet spot of Yahoo’s business. “Or, at the very least, why it did not even try to buy them.”

That’s why Thompson, with the help of board members, including David Kenny, has been on the hunt for new talent for Yahoo. That includes a search that is on for a new head of marketing, too.

Thompson has been doing the same kind of assessment with Yahoo’s media and advertising execs, who include Americas head Ross Levinsohn, as well as Asia’s Rose Tsou, and Rich Riley, who heads its efforts in Europe, Africa and the Middle East.

Sources said he believes that Yahoo might need a head of global sales or a chief of revenue to better organize and align its key advertising business. Ad revenues now make up a bulk of Yahoo’s business.

As Thompson has said numerous times publicly since he came on board, he is seeking to diversify that revenue, focusing on new businesses and also goosing non-ad ones already performing well. In Asia, for example, Yahoo has a robust online commerce business in comparison to other regions.

“Yahoo has to slim down and focus in some ways and bulk up in others,” said another source.

Of course, all of this might be moot, depending on how activist shareholder Daniel Loeb, who is prepping his own frontal attack on making changes at Yahoo, decides to move. According to sources, Loeb is assembling his own slate and trying to garner support from other shareholders, in hopes of further improving the value of his more than five percent stake.

What form that will take is unclear, but it’s not completely friendly at the moment.

In addition, Yahoo execs and its board are trying to wrap up a deal to sell off parts of its Asian assets in Alibaba Group and Yahoo Japan, part of a massive arrangement that could bring many billions of dollars of assets and cash into the core company that is left.

Which could then make Yahoo more able to compete, and give Thompson a war chest to do so — or make it an even tastier treat for a wide range of outside investors looking for a deal.

Like I said: Confused yet?

A Yahoo spokeswoman declined to comment.

Kodak to Stop Making Cameras

Lauren Goode — Thu, 09 Feb 2012 14:56:40 +0000

Eastman Kodak Company has said it will stop making digital cameras, pocket video cameras and digital picture frames in the first half of 2012, in an effort to achieve annual operating savings of more than $100 million. Rochester, N.Y.-based Kodak says it plans to expand its current brand-licensing program instead, and that it will continue to produce retail-based photo kiosks, inkjet printers, online photo gallery and apps, and camera batteries and accessories. The announcement comes a few weeks after the iconic camera company filed for Chapter 11 bankruptcy protection.

Can’t Buy Me Love … But You Can Buy Me Gadgets

Lauren Goode — Wed, 08 Feb 2012 20:54:58 +0000

When Valentine’s Day rolls around, some people think roses, chocolate, Words With Friends by candlelight and Forza Motorsport 4 marathons.

Others think (non-iPad) tablets and daily deals.

According to new consumer data from PriceGrabber.com, topping the list of electronically-oriented Valentine’s Day gifts purchased over the past couple days are the HP Slate 500 tablet — remember that one? — and the Asus Eee Pad Transformer TF 101 tablet. The results, which will be released in full later today, are based on merchant referrals through PriceGrabber, a Kayak-like, Experian-owned site for comparative shopping.

Also in PriceGrabber’s Valentine’s Top 3: A 55-inch 3-D LED TV from Samsung; with a price range of $1,995 to $3,528, this love offering is probably best for someone you’re truly committed to.

This latest report only factors in purchases made on Monday and Tuesday of this week. Over the weekend, Apple’s 64 gigabyte iPhone 4S was one of the most popular purchases, alongside that big Samsung TV.

The shopping survey also indicates that the daily deals sector might get some love this year, with 42 percent of shoppers saying they plan to use an offer from Groupon or LivingSocial for purchasing gifts.

In my own inbox, I’ve gotten some pretty interesting deal offers over the past few weeks — including (but not limited to) his-and-hers massages, half-off flower bouquets, and a “bargain”-priced private dinner at Le Cirque (no sign yet of last year’s shooting-range deal for Valentine’s Day).

Despite the lean toward coupons — and in spite lingering economic woes — the majority of U.S. consumers plan to spend the same amount on this Valentine’s Day as they did last Feb. 14, according to PriceGrabber’s report.

(Image credit: Harle/Flickr)

The Full Valenti: Dodd Trades His Olive Branch to Tech for a Howitzer, After SOPA/PIPA Gets Delayed

Kara Swisher — Fri, 20 Jan 2012 19:32:53 +0000

Poor Chris Dodd — he just got the top media lobbying job in Washington, D.C., at the very moment that the strong-arming-pols, scare-the-children, Jack Valenti era in media lobbying is now decidedly over.

It’s obviously a very confusing time for big media these days, on a lot of fronts. But any of the consummate insider moves once used by the legendarily pugnacious Valenti (pictured here onstage at our first D: All Things Digital conference in 2003) had a hard time this past week, as Internet players went very public in protesting two Congressional bills aimed at combating piracy online.

Not that Dodd didn’t try to cope.

The former Senator — who is now the chief lobbyist for the once much more powerful Motion Picture Association of America — gave a can’t-we-all-get-along interview to the New York Times on Thursday, in which he called for a meeting with techies to come to some acceptable compromise.

Wrote the Times:

“In an interview Thursday, Mr. Dodd said he would welcome a summit meeting between Internet companies and content companies, perhaps convened by the White House, that could lead to a compromise … ‘The perfect place to do it is a block away from here,’ said Mr. Dodd, who pointed from his office on I Street toward 1600 Pennsylvania Avenue.”

But on Friday, after politicians quickly moved to delay both the House’s Stop Online Piracy Act (SOPA) and the Senate’s PROTECT I.P. Act (PIPA) — after successful protests pointing out that the legislation could lead to censorship — Dodd went to the full Valenti again:

“We applaud those leaders in Washington who have chosen to stand with the millions of hard working Americans all across this nation whose livelihoods are threatened by foreign criminal websites designed to steal. As a consequence of failing to act, there will continue to be a safe haven for foreign thieves; American jobs will continue to be lost; and consumers will continue to be exposed to fraudulent and dangerous products peddled by foreign criminals.”

Foreign criminals! Foreign thieves! Is it just me, or does Dodd sounds like Cher, singing, “Gypsies, tramps and thieves”?

(Let’s be clear, that utterance could never top Valenti’s most infamous quote: “I say to you that the VCR is to the American film producer and the American public as the Boston Strangler is to the woman home alone.”)

To be fair, Dodd is hindered by strict restrictions on his lobbying Congress until next year. That said, this is not an old-timey, private Capitol Hill fight, but a modern-era, social-media-charged one.

And it’s pretty clear that the old scare tactics used by big media will no longer work as well, as consumers — as much as they like their movies — seem to love their Internet more.

Thus, what has happened is that — at least for now — the MPAA and media companies have lost and lost big, after the typically fractious Web powers decided to lock arms for once and cooperate with a creative, take-it-to-the-people approach of showing a disabled Internet.

Dramatic? Yes. Effective? Certainly. (That Facebook and Google agree on anything? Astonishing!)

Where it goes from here is unclear — the MPAA and its constituents could certainly rally and put forth their own protest. Ironically, the most effective way to do that is not via the airwaves or other former means of broadcast to the public, but on the Web.

Which is controlled by Dodd’s foes. (You see the problem here.)

The answer, in the end, might have to be the cooperation he first suggested.

As he told the Times:

“The companies, Mr. Dodd said, are ‘rethinking everything,’ not just about the bills, but about their relationship with an estranged Silicon Valley. That need for rapprochement, he said, ‘has come home in a way that no rhetoric of mine could express.’”

Much more to come, obvi.

The Times of Its Troubled Life: A 2007 Visit to Kodak (Video)

Kara Swisher — Thu, 19 Jan 2012 19:54:06 +0000

In 2007, after its CEO, Antonio Perez, appeared on stage at the fourth D: All Things Digital conference, I was invited to visit the HQ of Kodak in Rochester, N.Y., to see up close the transition to a digital imaging company he was attempting.

At the time, I wrote:

“That shift has obviously been painful, including huge cuts in its employee base, due to the sharp decline of its market might. Since 2004, Kodak has cut its employee head count from about 64,000 to 30,600 as it has undergone a massive restructuring.”

Yesterday, Kodak gave up that effort and filed for Chapter 11 reorganization. Where it will go from here is anybody’s guess.

While the iconic company has tried to leverage its patent portfolio, suing Apple, HTC and Samsung, it needs more than just that as it seeks to remake its ailing business.

Here are the two videos I did with its execs of the ideas back then that obviously did not work out, as well as one of the classic “The Times of Your Life” commercials (I dare you not to tear up watching it, a potent memory of the emotional power Kodak once had over consumers):

[ See post to watch video ]

As Weak Q4 Earnings Loom, Yahoo Freezes Hiring and Also Contemplates Layoffs

Kara Swisher — Thu, 19 Jan 2012 13:10:51 +0000

According to sources close to the situation, Yahoo has instituted a hiring freeze across the company and is considering a reduction in force in support units of the company.

While the details of any layoffs — which are expected to be small and selective for now — are still being worked out, sources said that the stricture not to fill hundreds of open positions is the first step toward significant cost-cutting initiatives across the Silicon Valley Internet giant, in the wake of what it expects to be another weak quarterly report next week and a looming proxy fight.

Yahoo reports its fourth quarter earnings Tuesday. While the company has managed to improve the results in the last part of the quarter, sources said they will still show continued weakness in its key businesses and consumer usage.

That’s as competitors such as Google and Facebook have been showing significant growth, especially in the display advertising market.

Thus, new Yahoo CEO Scott Thompson appears to be zeroing in on costs and managing for margins, said multiple sources, much as his predecessor Carol Bartz did at the start of her tenure.

But many think Yahoo needs even more drastic changes, including massive cuts in staff and also product arenas, to give the company new life.

That includes shifts in leadership at the top levels too. In a major move this week, co-founder Jerry Yang stepped down from the company’s board and all roles there. More directors are expected to leave soon, too.

That will likely come after negotiations to sell part of its lucrative stakes in both the Alibaba Group and Yahoo Japan are successfully completed.

While not a certainty, Yahoo’s board hopes that will happen sometime before activist shareholder Daniel Loeb initiates a proxy battle against the company in the coming month.

Sound complex?

It is, and also troubling to Yahoo’s long beleaguered rank and file, who have been worried about more layoffs.

The Yahoo troops have been under intense pressure and have suffered from ongoing attrition. Just yesterday, for example, Yahoo lost one of its top advertising execs, Seth Dallaire, to Amazon.

The company can ill afford such departures of key talent, even as it seeks to pare employee numbers in other parts of its business.

At the end of its last quarter, Yahoo reported that it had 13,700 staffers, down from 14,100 in the previous year.

Yahoo, of course, declined comment.

Hot-Button Topic: Do Women Buy More Consumer Tech Than Men?

Lauren Goode — Tue, 17 Jan 2012 23:12:35 +0000

The issue of women in tech is a hot topic — whether the conversation is about female board members and entrepreneurs in a male-dominated industry, or about opportunities for women to get education in tech earlier in life.

Whether women buy more tech products than men seems to be another facet of the subject emerging right now.

According to a new report from Parks Associates, more women than men are downloading movies and music, women do the majority of game-playing across some platforms, and women have higher “purchase intentions” than men do when it comes to some electronics.

In the 1986 movie “Ferris Bueller's Day Off,” Ferris got a computer, while Jeannie got a car.

Women are 40 percent more likely than men to play games on Facebook, represent the majority of Nintendo Wii players, and match men in terms of owning and playing Microsoft’s Xbox and Sony’s PS3, says the report. And women are 73 percent more likely than men to have watched a full-length TV show online in the past 30 days.

Parks Associates also says that women have higher purchase intentions than men do when it comes to buying popular devices like tablets, laptops and smartphones, though men’s interest surpassed women’s when it came to purchasing flat-screen LCD TVs.

Intent, of course, is different from pulling the trigger and pressing the e-commerce “buy” button.

This Nielsen study, meanwhile, refutes the idea that women aren’t likely to purchase advanced TVs.

And while the Parks Associates report says 88 percent of women purchased tech-related items last year, compared to 83 percent of the men surveyed, not all recent reports point to women as besting men in tech-buying.

Confused yet? You’re not alone.

Let’s look at this chronologically:

In 2008, men were estimated to spend $902 annually on consumer electronics, compared with the $558 women spent on tech each year.

By 2009, women were spending more on consumer electronics than men, according to the CEA. It says women accounted for $55 billion of the $96 billion spent on electronics gear that year.

But in 2010, as our WSJ colleague points out here, the average man reported spending $3 on consumer electronics for every $2 the average woman said she spent.

With all of the fluctuating data, perhaps comparing women to men when it comes to consumer tech spending isn’t the right way to look at it. It’s how much growth is occurring overall when it comes to women and consumer tech.

We’ve come a long way from this 2003 report on women being “comfortable” purchasing PCs and DVD hardware.

Despite the fact that women were still trailing men in terms of consumer electronics purchases in 2010 — women spent $631 on average, compared to men’s average annual spend of $969 — women still spent $73 more on tech products than they did in 2009. And that number is expected to continue to grow.

You’ve probably heard a lot about the emergence of female purchasing power. A lot of this may have to do with the current state of the economy and shifts within households: While men are recovering more quickly from the recession — regaining more than one out of three jobs lost, compared to women regaining about one in four — men have been hit harder over the past few years, hovering at a full percentage point higher in terms of unemployment. (Some of the recent employment gains for men may also be attributed to a disproportionate number of men working in the government sector who have been regaining their jobs.)

Many women consider themselves to be chief financial officers — of the home. According to a Harvard Business Review report from last year, U.S. women continue to say they control more than 70 percent of total consumer spending. Earlier reports indicate that this number could be even higher, but some researchers say the number is murky.

Another Nielsen study shows big differences between what female consumers in developed countries spend money on versus what females in emerging countries spend on: More than half of women in emerging countries focus on allocating household funds for their children’s education, compared to 16 percent of women in developed countries, who are more likely to spend on vacations and other items. And yet, in both developed and emerging countries, more than half of women surveyed say that purchases of computers, mobile phones and smartphones have changed their lives for the better.

Bottom line: Women are making more buying decisions, and that includes consumer technology products, though the growth to date seems incremental. And that doesn’t necessarily have to be measured against what men are buying — though marketers like to know these things.

We can only hope that increases in women’s tech purchasing also means that manufacturers and marketers are getting savvier about that age-old question — what do women want? — and that the answer isn’t necessarily hardware in stereotypically girlish hues.

Is Facebook IPO on Track for May?

Kara Swisher — Mon, 16 Jan 2012 09:31:26 +0000

According to multiple sources, the long-anticipated public offering of Facebook is now likely to come in the second or third week of May.

That means that the company must file its IPO documents within the next month, given that the review by the Securities and Exchange Commission usually takes about three to four months.

That’s if there are no issues, of course, such as a turbulent market or thornier-than-usual questions from regulators that require amending the filing.

Groupon, for example, filed for its IPO in early June, but did not go public until five months later in November.

The usual caveat on the late-May timing (even though I called 143 people on this one): This IPO planning could all change, in a New York minute, to another month.

In any case, the Facebook IPO is expected to be one of the largest Web offerings ever — with some reports saying the company will be raising $10 billion on a $100 billion valuation. (The valuation and raise, sources tell me, will be much lower.)

That amount is presumably to match its huge consumer growth and revenue explosion. Users now number 800 million — a figure that is likely to hit one billion this year. And revenue, which was reportedly close to $4 billion in 2011, is expected to be higher by another third in 2012.

Facebook will need such oomph if it is to impress investors, although the social networking site’s leadership is still warning that its focus is products over dollars.

In an interview with The Wall Street Journal last week, for example, co-founder and CEO Mark Zuckerberg hedged the point, even as he sang his same familiar strategic tune of the last few years.

“The thing to take away isn’t that we don’t care [about business]. People for years were asking me why aren’t we trying to make more money,” he said. “I would say I’m trying to build a business for the long term and it was clearly the right strategy.”

While admirably I’ll-row-my-way in tone, Zuckerberg needs a public offering heft more than ever, as Facebook’s battles with rivals — most especially Google — escalate.

Just last week, the monocratically-inclined search giant ham-handedly shoved its own social networking service, Google+, into its results, in a move that could severely disadvantage Facebook.

Thus, into the Wall Street breach, to get a giant pile of dough to fight back!

But, unlike Google’s more kookified 2004 IPO, sources said Facebook’s is probably going to hew to a more traditional offering script.

That is likely to include a hefty consortium of irksome investment bankers — think firms like Goldman Sachs and Morgan Stanley on top of the filings, and a spate of smaller ones (Allen & Co.) below, and you have the approximately accurate idea.

And, while shot-caller-in-chief Zuckerberg will be the one key voice in the IPO, the man to watch has been and will be CFO David Ebersman.

The longtime Genentech exec, who came to Facebook in 2009, has been doing all the heavy lifting in preparation for the IPO, said sources, and will continue to do so.

Facebook declined to comment (but I would too, if I were them).