We’ll have a liveblog commenting on the game, the commercials, the apps and more, brought to you by tech-and-sports enthusiast Ina Fried, with possible contributions from other staffers, if they can be pried away from the game.

Our coverage will kick off just before the game does. In the meantime, check out our techie guide to the Super Bowl with info on apps, streaming and more.

2:17 pm: It’s still more than an hour to go until game time, but if you want to watch, NBC is streaming the pregame show. http://nflstream.nbcsports.com/

2:23 pm: Sharing a few of my friends’ comments re: The Super Bowl:

“The Super Bowl … keeping Roman numerals alive for 46 years.”

and

“so I heard there’s a Madonna concert on today, with some strange pre-show and post-show entertainment …”

Feel free to email me your observations on the game, the tech and more to ina@allthingsd.com, and I will add in some of them, as well.

2:32 pm: Here’s what NBC’s streaming of the pregame show looks like:

2:35 pm: The NBC app also allows, among other thing, reviewing the ads and switching of camera angles.

2:43 pm: Getting my gear all ready for the game, and to monitor the apps. So far, I have at the ready a MacBook Air for the blogging and, to see the coverage, a Verizon/Motorola Droid Razr Maxx with NFL Mobile. And an iPad. May dig out one or two more gadgets, as well.

2:46 pm: My colleagues at The Wall Street Journal note that there is a traffic jam with folks trying to get to the game — an air traffic jam. I hate when I can’t park my private jet:

3:07 pm: Another shot of my setup as we get ready for the big game.

Meanwhile, it’s time for the starting lineup. Some guy named Manning is starting for the Giants.

The Patriots have some guy named Brady.

3:11 pm: It’s time to meet the players for both teams. And/or heat up the five-layer dip.

3:12 pm: On the commercial front, meanwhile, it’s an ad for Hulu Plus. No Baldwins or aliens, though.

If you miss a commercial, by the way, NBC says you can rewatch it on their site.

Not sure if the same goes for key plays.

3:16 pm: “America the Beautiful,” with Miranda Lambert and Blake Shelton. I missed who was singing on the TV. Luckily, NFL Mobile on Verizon Droid Razr Maxx is running about 10 seconds behind. Homegrown instant replays.

3:18 pm: Meanwhile, “American Idol” alum Kelly Clarkson is singing the National Anthem. So far I’d put “Idol” up by a touchdown over “The Voice.”

3:20 pm: Cut to commercial for Sacha Baron Cohen’s new film “The Dictator,” followed by a Verizon Wireless add for the Droid Razr, which now comes in colors. AJ’s excited: “You know me, I love colors,” he said.

As for me, I’m more excited by the Maxx and its extra battery life. Should have charged it up ahead of time to see if it could make it through the whole game.

Twitter is doing an interesting special Super Bowl page, monitoring how both teams are doing, tweet-wise:

3:26 pm: Meanwhile, on the field, New England won the coin toss and deferred to get the ball in the second half.

3:29 pm: As a reminder to all those enjoying the free livestreaming of the game by NBC, be thankful they have the game rights and not ESPN.

ESPN boss John Skipper told me at our D: Dive Into Media conference that he totally would have charged fans if he had the game rights.

3:38 pm: Quick game update: Giants will have to punt. Patriots will get it back, but deep in their own zone.

3:39 pm: Nice spot for Audi, touting the vampire-crushing power of its headlights.

3:41 pm: Whoa, intentional grounding call. Since Brady was in the end zone, it’s a safety. For you techie, non-sports fans, that’s two points for the Giants, plus they get the ball.

3:45 pm: Twitter is taking note of the fact that hashtags are everywhere in the Super Bowl ads, so far. Hashtags are the new URLs, says Gartner’s Michael Gartenberg.

3:50 pm: It was a catch and a fumble, but more importantly, the Patriots had an extra player on the field, so it’s just a penalty.

3:52 pm: Touchdown Giants, meaning Team Mossberg is off to a rough start, now down 9-0. Sorry, Walt.

3:54 pm: Best Buy just showed their cellphone ad — featuring, among other tech folks, Philippe Kahn, talking about the first cellphone camera. Also featured: Ray Kurzweil, the creators of Shazam, Instagram, Words With Friends and more.

It’s a fun spot.

3:56 pm: Also fun: The spot with a Chevy truck surviving the 2012 Mayan-predicted apocalypse. A bunch of guys in their trucks reunite, along with the Twinkies, which also survived. Not so lucky: The guy driving a Ford.

4:02 pm: Oh boy. Go Daddy at it again.

4:06 pm: Patriots kick a field goal to make it 9-3.

Meanwhile, colleague Joe Brown has dug up some most excellent Super Bowl related tweets, I’ll sprinkle in here:

@TheTweetOfGod notes this will be the last Super Bowl before the Apocalypse; @AndyBorowitz notes that porn sites are seeing a drop in traffic; while @JimGaffigan aptly points out that “The Super Bowl is like the Super Bowl of Super Bowl references.”

Borowitz also hypothesizes that Madonna’s halftime show will provide “a sneak preview of Lady Gaga’s halftime show in 2032.”

See something you like, send it my way to ina@allthingsd.com.

4:15 pm: Nice Volkswagen commercial mixes cute dogs and “Star Wars” to capture two key demographics.

4:20 pm: Aiming for equal time after that Go Daddy ad, there’s one that consists of just David Beckham in his underwear for 30 seconds.

4:23 pm: Interesting playbook for the Patriots, so far. I think it is the BlackBerry PlayBook.

4:28 pm: There are all these apps for making a game out of watching the Super Bowl. Hopefully, there is one that makes the Patriots make a game out it.

4:30 pm: Giants have to punt again, but they pin the Patriots deep again. New England will have it on their own four-yard line.

4:32 pm: It’s retro time, with Lucasfilm touting the 3-D version of “Star Wars,” and NBC touting the 53-year-old version of Madonna.

4:37 pm: Breaking: Teleflora steals ad team from Go Daddy. Then a funny ad from Sketchers, with a dog in tennis shoes.

4:38 pm: Wow, that Cars.com ad was creepy. With a capital “C” and a capital “REEPY.”

4:41 pm: Another tech note: NBC’s livestreaming is being aided by Vertigo, whose CEO, Scott Stanfield, asks everyone to help make the game the biggest streaming event ever.

4:43 pm: Grandma in wheelchair steals back Doritos bag by slingshotting baby to get it. Now it’s Etrade baby and pal “speed dating” in a hospital nursery. Babies are taking over.

4:46 pm: As for that football game thing, it’s almost halftime, with the Patriots in striking distance at the three-yard line, with 18 seconds to go.

4:47 pm: And Mossberg scores. Well, technically speaking, it was one of the Patriots on the field. Anyhoo, touchdown Patriots.

4:51 pm: And it’s halftime.

Or “game time” for many of my friends, who don’t understand why they are playing football at a Madonna concert, anyway.

5:00 pm: Hulu Plus gets another plug. Touts the ability to watch shows on all kinds of devices. Now it’s an evil(er) plan to take over the world.

Meanwhile, Shazam gets a shout-out in a Bud Light ad.

5:01 pm: And now, the moment you have all been waiting for … 1982.

5:04 pm: On the plus side, the wardrobe is fully functional.

5:06 pm: Meanwhile, if you Shazam the halftime show, you get a free LMFAO remake of Madonna.

5:11 pm: Dude, Madonna just stole the football field. We’re going to want that thing back.

5:16 pm: Here’s the Shazam app in action during the halftime show:

5:17 pm: And here’s how Madonna wrapped up her act, as seen on the one screen I haven’t talked about. It’s called a TV — people used to watch stuff on them:

5:23 pm: And, with some final halftime ads from Betty White and Clint Eastwood, we’re back to football. Brady and the Patriots have it just past their own 20.

5:28 pm: Walt carries it in again, as the Mossbergs extend their lead to 17-9.

5:31 pm: Just checked. RIM hasn’t made any personnel moves during this game.

5:36 pm: Some more great tweets curated by our fabulous Joe Brown:

@michaelianblack: Joan Rivers did an amazing halftime show.

@PFTompkins: That oughtta do it. World peace should be here by the next GoDaddy commercial.

@TheTweetOfGod: Patriots 10. Giants 9. Madonna 53.

5:39 pm: Giants did a kick-y thing. Now 17-12 Patriots.

5:39 pm: Update: Fiat also knows how to use sex to sell.

5:42 pm: I want to grab a beer, but I am afraid I might miss a commercial. Or accidentally grab a Bud Light Platinum, whatever that is.

5:43 pm: Meanwhile, NBC is plugging an NBC Sports Talk app.

Madonna gets a shout-out from her peers:

5:52 pm: It’s easy to miss, in all the tweets and ads and Madonnas, but there is actually a pretty good football game going on.

5:56 pm: It’s almost the moment you have all been waiting for … Samsung’s Galaxy Note commercial. It’s kind of like a futchdown.

6:06 pm: Loving the “Ferris Bueller” revamp Honda CR-V commercial with Matthew Broderick. #bueller

First Madonna, now Ferris Bueller. Glad my generation now runs all the companies. Or at least their ad agencies.

6:13 pm: Bud Light gets some “awww” points with its last ad, promoting the beer-fetching rescue dog, “Weego.”

6:21 pm: Woo Hoo. Careerbuilder monkeys. I’ve missed those guys.

6:21 pm: Fourth quarter, 9:24 left to go. You can text your vote to for Super Bowl MVP. Personally, I’ll need another 9:24 to give you my answer.

6:25 pm: Futchdown! Goofy ad for Samsung’s Galaxy Note phablet now on.

Not a lot of stylus fans on Twitter, as Samsung ad is getting roundly panned, as is the product.

6:29 pm: Dow Jones colleague Ian Sherr reports his stream of the Super Bowl is decidedly subpar. “None of the TV ads, and it doesn’t even break at the same time as TV.”

Of course, only at the Super Bowl does one complain there are not enough ads in Internet streams.

“I’ve missed several plays, and they keep playing the same ads with Dwight from The Office and “Act of Valor” over and over again,” Sherr said in a Twitter post.

6:32 pm: Meanwhile, it’s a two-point game, with 3:46 to play.

Giants have the ball, down two on their own 12.

6:34 pm: Throw to the sideline at 50-yard line ruled a catch. Patriots challenge, but looks pretty good. First key use of instant replay this game.

Yep, ruling on field confirmed, and will cost the Patriots a time-out.

6:37 pm: As for that Samsung ad, it was a first-ever commercial for director Bobby Farrelly, who is known for “There’s Something About Mary,” “Dumb & Dumber” and “Kingpin.”

If you need to re-watch it, it’s here.

I recommend doing so now, as there is another Go Daddy.com ad playing.

6:44 pm: Giants score, but likely would have rather used a little more clock.

New England will still need a touchdown, and have less than a minute to get it.

It’s now 21-17, Giants.

Sorry, was watching the game. First down, but clock clicking. Just 17 seconds left, though.

6:51 pm: Just nine seconds left now, with Patriots near midfield.

6:52 pm: Okay. Five ticks left, so this is probably it for both the Patriots and this liveblog. Hope you were at least entertained!

Incomplete. Giants win, 21-17.

6:55 pm: Disneyland or Disney World? That’s the only question that remains.

I love talking points as much as the next person, but there’s a striking similarity between recent statements by Yahoo’s co-founder and former CEO Jerry Yang and its new CEO Scott Thompson, who was just hired after a stint running eBay’s PayPal unit.

It seems from the pair that the exploitation of Yahoo’s troves of data might take center stage from the “premier digital media company” moniker that the Silicon Valley Internet giant has been using of late.

Premier consumer data mining and usage company just rolls off the tongue, doesn’t it? (And it’s also usually called Google!)

Here’s Yang from an interview with Walt Mossberg at our AsiaD conference in Hong Kong this past October (this is a liveblog with quotes and paraphrasing of quotes).

Q: As you look at what Yahoo could be, what are the one or two key areas that it could go after to truly transform itself?

Jerry: We’re really focused on trying to “turn Yahoo inside out.” We do a huge amount of services internally: Data, content, personalization. Lots of other people on the Web around the world could use that.

And, from my liveblogging, here’s Thompson last week on his aspirations, which were much less focused on Yahoo’s longtime — and, ahem, bill-paying — advertising business (which the new leader keeps saying he knows nothing about) than on exploiting its consumer data businesses (which he certainly does know about from running the online payments giant).

The data these Internet businesses create, the ability to use analytical technology to build a better businesses for your customers. … I feel certain that wealth of data is going to be exploitable for next generation products, next generation experiences. … My instinct says down in that data we’re going to be able to find ways to compete and innovate that the world hasn’t seen yet.

Data it is, then!

Demand Media beat Wall Street expectations in the third quarter, posting a loss of five cents a share. Investors had expected it to lose from four to six cents.

Revenue was up 25 percent to $85.1 million, compared to $65.4 million in the same period a year ago. Minus traffic acquisition costs, sales increased 26 percent to $78.1 million from $62.2 million.

The stock of the Santa Monica, Calif., social content company has suffered in the quarter due to worries about its traffic and growth, but it has recently bounced back after hitting all-time lows.

After losing almost nine percent today, in profit-taking ahead of earnings after a recent price surge, Demand shares rose over 17 percent in after-hours trading to $8.30.

Some more details, according to a Demand statement on the Q3 financial results:

Content & Media Revenue increased 27% to $50.7 million, compared with $39.8 million in Q310.

Traffic acquisition costs (TAC), which represent the portion of Content & Media revenue shared with Demand Media partners, of $3.4 million, or 6.7% of Content & Media revenue, compared with $3.2 million, or 7.9% of Content & Media revenue, in Q310.

Content & Media Revenue ex-TAC grew 29% to $47.4 million, from $36.7 million in Q310.

Registrar Revenue increased 20% to $30.7 million compared with $25.5 million in Q310.

In addition to its more high-profile content business, Demand also has a domain registry unit.

“We reported another strong quarter as we continue to build Demand Media’s foundation for long-term growth,” said Richard Rosenblatt, Chairman and CEO of Demand Media in the statement. “The Company is uniquely positioned to deliver data-driven professional content through its robust content publishing platform. We are now in the process of optimizing that platform while increasing our investment in video content and enhancing the quality, engagement and user experience of our sites.”

There will be a conference call at 2 pm PT today, which I will liveblog (as long as it is lively!).

Until then, enjoy the official Q3 earnings press release:

3Q11 Earnings ReleaseFINAL

Later today, Google Executive Chairman Eric Schmidt will appear at the Senate Judiciary Committee’s antitrust subcommittee for hearings on whether Google is a search bully or not.

Schmidt, according to written testimony obtained by the Politico blog, will be trotting out the company’s longtime argument that its competitors are “only one click away” from taking Google down.

And, in what can only be described as a you’ve-got-to-be-kidding furthering of that meme, Schmidt will apparently claim that Microsoft’s much tinier Bing search service could catch and pass Google by next year.

Reads the testimony, according to Politico: “Microsoft’s Bing launched in June 2009 and has grown so rapidly that some commentators have speculated that it could overtake Google as early as 2012.”

Say what? Say ridonkulous! The Facebook worry, I get, but costing-Microsoft-a-billion-a-quarter Bing?

That’s because in the most recent market-share report from comScore, Google had 64.8 percent of the total, with Yahoo at 16.3 percent and Bing at 14.7 percent. Even combining the pair — who are currently in a search partnership — they still have less than half the share that Google has.

In any case, although the Google-as-imminently-threatened concept displays a lot of gumption, it’ll be interesting watching Schmidt try to sell it.

And also to see Google’s critics call foul.

After Schmidt appears, there will be a second panel, featuring Yelp CEO Jeremy Stoppelman; Jeffrey Katz, CEO of Nextag; and Tom Barnett, spokesman for FairSearch.org and counsel to Expedia.

Stoppelman, who almost sold his online reviews company to Google in late 2009, has since become a vocal detractor of the search giant’s methods.

In his testimony as well as exhibits, all posted below, Stoppelman paints a more dire picture of Google:

“When one company controls the market, it ultimately controls consumer choice. If competition really were just ‘one click away’ as Google suggests, why have they invested so heavily to be the default choice on web browsers and mobile phones? Clearly they are not taking any chances.”

Stay tuned for my liveblog at 11 am PT, as well as other AllThingsD coverage of the hearings.

9.21.11 Verbal Testimony _10am final_

9.21.11 Written Testimony _clean_

9.21.11 Exhibits

Today, Demand Media beat Wall Street expectations in its second-quarter earning, growing revenue and lessening losses.

The Santa Monica, Calif., online content maker also announced that it had re-upped and expanded its advertising partnership with Google and also bought two start-ups in social media and advertising.

Now, it’s time for the inevitable conference call to explain it all to Wall Street analysts and the media.

2:02 pm PT: The call starts off with an unusually jaunty CEO Richard Rosenblatt, who quickly got to the real deal: Exactly how badly did Google’s changes to its search algorithm, under a program code-named Panda, hurt Demand’s content business?

Not much, says Rosenblatt, who reels off a list of things the company has done to improve its offerings, which have been dinged by many as, well, spam.

Rosenblatt was not having any of that, talking about removing 300,000 pieces of crappy content and also “quality improvements” with partners such as cheerily demented cooking goddess Rachael Ray. She might cook with spam — here is a delightful Spam Hawaiian recipe — but she ain’t spam!

2:13 pm: Now it is on to the acquisition of IndieClick. Essentially: It’s for the young people.

Then, international. Latin America Demand editorial via eHow en español! (Actually, the acquisition of Emergincast.com, an Argentine start-up. Coming soon to a blog site near you: ¿Cómo se hierve el agua?

Last, social media. Demand will be doing a lot more of it, like everyone else in the world, including more recommendations. I would really like it if some Internet company said it was going anti-social.

2:18 pm: The finance guy comes on, covering everything already in the press releases. Which is why I am cutting out here and getting a gluten-free doughnut at the Whole Foods store where I am writing this post.

It is as delicious as you might imagine a gluten-free doughnut can be. Which is to say: Not very!

2:32 pm: Q&A time from the Wall Street dudes — and, let it be said, they are all dudes.

The first question is about the “cleansing” of its cruddy content and if it is all flushed out.

It might be baked-on sludge, but Rosenblatt assures that Demand has it all figured out.

Then, a query about international and how the company decides what to pick. Algo, of course! And local content writers.

Back to the spam content: Does the need to have better content mean less of it? Kind of, since there is a lot more video. But still a lot of content churning out of Demand!

A question about Facebook and how to program Demand content into it. Good lord, it’s hyper-poking!

“It’s not clear the best way of how you expand into all these properties,” said Rosenblatt, specifically referring to its acquisition today of both IndieClick and RSS Graffiti.

The next question is how successful Demand is in the display and brand business, and how IndieClick, a premium ad company aimed at niche blogs, will be integrated in.

More on social media advertising’s future. Aaaghh, this is as obvious as a store-bought-crust apple pie baked by Rachael Ray.

Rosenblatt notes that its flagship site, eHow, is but one means of distribution, but Demand content is going all over the place and winging by people when they least expect it.

“Social is more effective … to try to find stuff you didn’t know that you needed,” says Rosenblatt, who also would not dis search as a means of discovery.

That’s important, since Google is a major traffic driver and advertising partner, when it is not terrorizing Demand and others with its search algo version of Defence Against the Dark Arts Professor Snape.

And presto, here comes a question about Demand’s Google ad relationship, which Rosenblatt touts nicely.

Of course he does. It’s tastier than spam, after all.

This morning, News Corp. CEO and majordomo Rupert Murdoch, his son James (who is also a top company exec) — as well as former employee and full-time lightning rod Rebekah Brooks — march on down to the British Parliament to answer questions from a committee there about the ever-growing PhoneGate scandal.

For those living under a rock, News Corp. is embroiled in ever more serious controversy about who knew what and when (also where, why and how much) in the hacking of phones of a myriad of well-known people in the U.K. by its News of the World tabloid newspaper.

Besides celebrities and politicians, that has included the voicemails of a murdered girl, an appalling act that has galvanized public opinion and the weak spines of legislators into action in this inquiry.

It’s sordid, it’s ugly and it makes for what could be an explosive event, starring the man who brought you “Titanic,” Glenn Beck, “Glee” and, most recently, the sale of Myspace.

There’s no question, getting the 80-year-old Murdoch on the ropes will be the aim of the committee members holding the hearing, and how one of the world’s most famous and legendary media moguls performs — or does not — will be a big deal to both interested observers and News Corp. shareholders.

By way of full disclosure, that’s not me, but this site is owned by Dow Jones, which is owned by News Corp. In other words, somewhere up the corporate food chain, Murdoch is my boss.

In any case, that has never stopped me or AllThingsD.com from telling it like it is, so here is the liveblog of what is sure to be a doozy of a media event:

6:36 am PT:: It all starts for the Murdochs, as soon as the former Scotland Yard head John Yates has completed questioning about the police’s obvious bungling of the various investigations over the years.

Rupert Murdoch and his son, James Murdoch, are on, looking grave and dressed in grey.

Sitting behind them are Rupert Murdoch’s wife, Wendi Deng, and his top adviser at News Corp., Joel Klein, who is heading up the phone hacking scandal internally at the company.

The hearing — in a room that looks like a high school debate could take place there — starts off politely enough.

But the first question is directed toward James Murdoch about his clearly incomplete investigation when phone hacking allegations were first made many years ago. He begins with an apology.

“These actions do not live up to the standards of News Corp.,” says the younger Murdoch.

He is interrupted by his father, Rupert Murdoch, who notes rather dramatically: “This is the most humble day of my life.”

The questioner quickly asks the obvious query, after James Murdoch claims News Corp. was not in full possession of the facts when execs had told a previous committee there was no reason to believe there was more widespread hacking.

Were News Corp. execs lying?

James Murdoch continues to insist that the bulk of evidence came out — “real evidence” — in later civil trials. And also, that News Corp. is now investigating the situation fully.

He throws around words like “proactive action” and “transparency,” which is probably cold comfort now to those hacked when things were less clear to News Corp.’s senior management.

Now up, Rupert Murdoch, who is asked quickly about statements he made about not tolerating wrongdoing and who had lied to him at News Corp. about the phone hacking.

Apparently, he “didn’t know” a lot about the hacking that took place, while also defending the non-hacking employees of his company.

But the questioner is still on him about exactly what he did know about the situation, which seems to be — at least according to his testimony — a lot of I-don’t-knows.

6:53 am: It continues about what Rupert Murdoch knew and when he knew it and what he did. Or not.

As Rupert Murdoch keeps up with this tone of not being clued in to what have turned out to be critical events, James Murdoch wants to keep jumping in with the details, which he is eager to impart.

“At what point did you find out criminality was endemic at News of the World?” asks the questioner.

Rupert Murdoch does not like the word endemic, but stresses that he was “shocked, appalled and ashamed” by the case of the murdered girl, Milly Dowler.

The questioner seems frustrated by Rupert Murdoch’s answers, which are, for the typically razor-sharp media mogul, unusually slow.

Like a persistent terrier who wants to perform, James Murdoch is back again offering to serve up the deets.

7:04 am: Now, it is onto the closing down of News of the World: Was the tabloid shut down because of the criminality?

“We had broken our trust with our readers,” says Rupert Murdoch. “We felt ashamed for what had happened.”

A new questioner is on, with a bizarre query about why Rupert Murdoch came in the back door of the Prime Minister’s house at 10 Downing Street on a recent visit there.

It’s a cloddish effort to show him as a powerful puppetmaster to pols, but only serves as a punch line.

Back on track, with questions about whether there was hacking in the U.S., which Rupert Murdoch said he could not believe had happened.

More questions about how badly the company acted, which came down to the questions about whether he was “ultimately” responsible for the hacking.

“Nope,” says Rupert Murdoch, who keeps insisting he relied on others, some of whom apparently “misled” him.

It’s an astonishing admission and, really, excuse, given he has been chairman, CEO and a very strong leader of News Corp. for more than a half-century.

7:16 am: A new questioner, who asks who decided to close down News of the World. It was Murdoch himself, his son and other execs.

Next up, why did News Corp. pay off a victim of hacking, which James Murdoch did without informing his father or the News Corp. board.

James Murdoch essentially points out that it is typical to do this in companies of the global scale of News Corp.

These are apparently very busy, busy, busy people, who do not seem to have time to notice how such juicy and best-selling scoops might have been magically produced by News of the World.

Onto ethical conduct guidelines, which News Corp. has in a pamphlet form, says James Murdoch, but pages which some at the company have obviously never cracked.

Rupert Murdoch is asked again about his culpability in the case, which he continues to maintain he does not shoulder the blame.

James Murdoch does note that the company “will think more forcefully … about our journalism and ethics.”

Given the situation, in which every day brings a new revelation of bad acts by News Corp. employees, this promise of better behavior seems to be a case of much too little and very, very late.

Rupert Murdoch still uses the opportunity to stress the need for a free press, despite its excesses.

7:31 am: More about the payments to settle with phone hacking victims and how soon the company realized the problems were more widespread.

James Murdoch talks about how he might have acted differently had he known more then as he does now.

“If we knew now what we knew then,” says James Murdoch, “we would have taken more action and moved more aggressively.”

But what else is he going to say? It’s a could-have, would-have, should-have line of questioning that is eliciting very little in the way of true information.

Finally, a good point about “willful blindness,” which is a term from the Enron scandal about avoiding knowing about problems you really should have known about.

“Is that a question?,” asks James Murdoch. It is a statement, actually, and a decent enough one.

“We didn’t do that,” says Rupert Murdoch firmly this time.

Still, soon enough, Rupert Murdoch is insisting he was not as involved as people have imagined him to be with the management of his newspapers.

A new questioner is pressing this important point, but Rupert Murdoch is not biting on a query about his legendarily hands-on managing style.

“I’d say, ‘What’s doing?’” he explains about his conversations with editors, but adding he might not have been told about payoffs to phone hacking victims.

The questions are in the deep weeds here, but it’s still interesting that Rupert Murdoch continues to maintain that his life was too busy to wallow in the details, however controversial and important those details might be.

7:55 am: More and more don’t-knows pile up and up in a giant mountain of acts perpetrated by someone somewhere, but not the Murdochs.

“I can tell you I was surprised as you were,” says James Murdoch about certain payments to various hackers and those who were hacked.

Was it Les Hinton, who then ran News International and later Dow Jones, from which he recently resigned?

Could be! Maybe! Mistake were made! Who knows!

Well, someone does!

It moves onto Brooks, the tarnished News International exec and editor whom Rupert Murdoch does note he still trusts. Finally, some certainty!

Brooks is definitely one of the more compelling characters in this drama, although the media focus on her striking red hair color seems odd and vaguely sexist, as if she is some flame-haired she-devil from media hell. She might certainly be guilty in this mess, but her fabulous hair has nothing to do with it.

(Rupert’s mane is grey, by the way, and James’ is brown, if you really need to know.)

Fascinatingly, Murdoch’s backing of Brooks has been strong and consistent, despite intense criticism of her by many in this scandal.

The payment of legal fees of perpetrators and payments to the victims in the hacking seems to obsess one questioner, who wants News Corp. to stop doing it.

Murdoch says he’d like to if contracts did not preclude that, which essentially means News Corp. will keep up forking over the legal fees and payments.

8:12 am: The attention turns to how James Murdoch found out about the various emails that showed there was more evidence of hacking than was first thought about and what he felt about it.

He says very little, noting that the matter is under police investigation. It’s not don’t-know now, but can’t-say.

The hearing is beginning to feel a little rope-a-dope, with the Murdochs apologizing and taking blows, saying very little — either claiming lack of knowledge or lack of ability to comment about the ongoing police inquiry — and tiring out the questioners.

It is a classic tactic of the boxing champion Muhammad Ali and it works in the ring.

Whether that will be the case with PhoneGate remains to be seen, but it certainly has made what could have been a more explosive hearing much less so.

Instead, it seems to have turned into a what didn’t the Murdochs know and when didn’t they know it hearing.

On questioner gets this irony. “That’s frankly unsatisfactory,” he says about the Murdochs continuing shock and surprise at the thorny situation they find themselves in.

Maybe it seems a little hard to believe, but the persistent story from James Murdoch is that they were told by their lawyers, the police and others that nothing was awry once the initial phone hacking investigation was complete and only found out about the larger problem in later civil lawsuits.

But, asks the questioner to Rupert Murdoch, should his editors and managers at News of the World have known about it?

Of course, they should have.

But, once again, the legendary media baron, who made his fortune and fame in disseminating news and information across the world in newspapers, on television, on satellite and on the Web — at least for now — can’t say.

So, was he “kept in the dark” about the situation? Rupert Murdoch acknowledges he might have asked more questions, although he noted his British newspapers were only a small part of his massive empire.

But, he adds, “Anything that is seen as a crisis comes to me.”

Well, not the phone hacking crisis, it seems.

But, they’re sorry. So sorry. And, of course, humbled.

8:54 am: Suddenly, there is a disturbance, in which someone seems to have possibly attempted to accost the Murdochs.

But it is not clear what has happened, as the hearings are suspended for 10 minutes.

James Murdoch leaps up quickly to protect his father, which he has been doing in this hearing verbally already, where the strategy seems to be to let him largely do all the talking.

Even faster on her feet and with arms raised toward a man in a plaid shirt and carrying a pie plate with shaving cream is Rupert Murdoch’s wife, Wendi.

The man seems to have managed to get some of the foam on Rupert Murdoch, but Wendi Deng appears to have partially thwarted her husband from receiving a full pie in the face.

It’s the first striking visual of this hearing, protecting the patriarch and the king of the empire from harm, no matter what.

Here is a video of the incident:

According to Britain’s Channel 4: “As the man was being led away in handcuffs escorted by a single police officer, he refused to give his name, saying: ‘As Mr Murdoch himself said, I’m afraid I cannot comment on an ongoing police investigation.’”

9:09 am: The room is cleared, so it is only the Murdoch crew behind James and Rupert Murdoch, and now the committee is even more solicitous.

Rupert Murdoch is without his jacket and his wife is being commended for her most excellent left hook.

Still, it’s back to business and the questioner does zero in on a major disconnect over how two media execs as famously aggressive and involved as the Murdochs were so passive in this hacking situation.

It “was a terrible shock,” says James Murdoch.

The same is said about what would be even more disturbing and recent allegations of the hacking of the victims of the 9/11 bombings.

Both father and son say there is no evidence of this so far, but they were surely looking into it.

While it certainly did not come through in what have largely been feckless questions from the committee, the final questioner does correctly ask the pair if they might want to pay more attention.

The last question is for Rupert Murdoch and finally gets to the real query everyone wants to ask.

Noting Murdoch is “captain of the ship,” she asks if he has considered resigning.

“No,” answers Murdoch firmly.

“Why not?” she presses.

“People let me down and it’s for them to pay,” says Rupert Murdoch. “But I think, frankly, I am the best person do clean this up.”

He finishes up with a statement about being sorry, how he was also betrayed and how phone hacking and bribery is wrong.

“Saying sorry is not enough, things must be put right,” he says.

Finally, something we do know.

At least once a day, BoomTown gets a call from investors, analysts or other troublemaking types–you know who you are!–wondering why Yahoo is still plugging away in search.

With a declining market share in the arena and a search technology outsourcing deal with Microsoft, it’s not a bad question to ask.

But Yahoo begs to differ, introducing a new feature called Yahoo Search Direct at a press event in San Francisco today.

I liveblogged it, natch.

10:14 am: I was late, as per usual, but walked in just as the session was getting started.

Yahoo’s Chief Product Officer Blake Irving–looking fetching in a purple cashmere sweater–was talking about search.

He immediately turned it over to Shashi Seth, Yahoo’s head search dude, who immediately said: “Answers not links.”

Huh?

Actually, the product is pretty nifty, showing a lightning-speed box that shows more robust search results, although not unlike offerings from both Microsoft’s Bing and, of course, Google Instant.

While both have different takes, it is essentially a direction in which search brings in maps, photos, and–of course–advertising.

You can see a movie times example here (click to make the image larger):

10:23 am: Wait, it was over before it started! Whoa. No more bells and whistles?

And I still was enjoying Irving’s sweater and I wanted to touch it, but that would have been wrong.*

Seth then took questions from the reporters.

“We believe the next generation of search…people are looking for answers,” he said.

Very true, but perhaps not so much from Yahoo anymore.

Still, Yahoo Search Direct is a laudable try and it’s also nice to see some innovation from the long-troubled company.

“We are the premier digital media company,” said Seth, parroting a new description of Yahoo that the Silicon Valley company is now using since its recent sales meeting in San Antonio.

I asked a question about whether there is a dedicated app for the tablet of Yahoo Direct Search, which sources had also told me was shown to the troops in Texas.

Yep! It will be ready later this year.

I also asked about how much all this search innovation was costing compared to return on the investment.

No answers from either Irving or Seth.

Someone then asked if there would be a lift in market share from the feature.

That’s the plan, Stan!

10:41 am: More questions about the comparisons to Google Instant. Of course, it’s the same type of thing, in the contest to win the King of Relevancy crown among consumers.

Google Instant. Yahoo Search Direct. Quora. My dentist, who seems to know everything. In case you didn’t know, dentists are very erudite.

Seth noted that even though Yahoo has only 15 categories covered in Yahoo Search Direct, there will be hundreds to come, as well as more features on top of this feature.

Personally, I want my search delivered to me on a silver tray by a man in a purple cashmere sweater.

Speaking of purple, the demo dude kept putting Elizabeth Taylor into the query box, which depressed me. Violet eyes now closed forever.

That was the real story today.

As if to round out the event, someone asked whether critics are right about whether Yahoo should still be in search.

“We’re in this for good,” said Irving firmly.

“Look, we are not focused on the past,” added Seth, who was not here in this very room at a similar Yahoo search event years ago, when similar promises were made about search going away from a page of blue links. “I don’t even know if you’d call it search in three years.”

What would you call it then?

“Find,” joked Irving. And later, “It’s actually ‘found.’”

Apparently, Yahoo was lost and now is found via Yahoo Search Direct.

*By the way, I touched the sweater, which was–in fact, Blake–periwinkle, which is a twee version of purple.

(You can see a video interview I did with Seth after the demo here.)

AOL CFO Artie Minson prepped investors for the call with a memo laying out expectations. Short version: AOL thinks HuffPo will earn about $10 million on revenue of $50 million this year (as long as you’re okay with using “adjusted OIBDA” as a proxy for “profit”). It also thinks the purchase will save it $20 million a year, but it’s going to spend around $20 million on restructuring charges when the deal goes through.

I’ll liveblog the call below:

8:02 am: Greetings! About to start now.

8:03 am: On the call: Tim Armstrong, Arianna Huffington, Artie Minson.

8:03 am: Armstrong makes a Super Bowl joke that I can’t quite follow, and I like football. But now praising Arianna, co-founder Kenny Lerer and outgoing AOL CEO Eric Hippeau.

“The Huffington Post is one of the best properties on the Internet.” Armstrong, Huffington and Minson are all BlackBerry users.

8:06 am: On revenue: This gives an opportunity to serve more brand marketers, who are “very interested” in the scale this gives us.

8:07 am: Spending next 30 days on integration. “Really synergies to be had.”

Next steps: Next 72 hours communicating with employees, talking to partners. 1,500 AOL workers on the phone this morning explaining deal to others.

“This may be the smallest disruption” internally of any deal I’ve worked on. Majority of integration done within 35 to 40 days.

8:09 am: We’ve looked at a bunch of companies, though we’re mainly going to concentrate on organic growth. But Arianna is great [many superlatives] and she “also happens to be a woman.”

8:10 am: Here’s Arianna.

8:11 am: “Amazing” how aligned two orgs are.

8:11 am: HuffPo was profitable last year. We were thinking about bringing in additional investors last year, and an IPO down the line. But this made perfect sense.

8:12 am: This deal provides a “dramatic acceleration” for the plans we already had.

8:13 am: Some praise for Patch, AOL’s local strategy.

8:14 am: Can’t wait to start!

8:14 am: Alrighty, then. Here’s Artie Minson with some nuts and bolts.

Actually, it’s some color on the deal. But a lot of it is in the prepared remarks he put out earlier this morning.

8:15 am: Again, $20 million in cost savings here. And again, we’ll have to pay up for restructuring: $20 million for cuts, and $10 million for purchase price.

8:17 am: Still basically reading from prepared remarks. Some bookkeeping talk re: compensation accounting.

8:18 am: Remember, display ad growth coming will finally start showing up second half of this year.

8:19 am: Q&A:

Q: Talk about content strategy. Does HuffPo become hub for content going forward? Does it replace Seed? And how long is Arianna’s contract?

A: “The press” has been talking about our content strategy, so let me be clear–we’re focusing on premium content. Things like Seed and StudioNow are platforms–you can do whatever you want with them, different quality levels, at different types of scale.

And then the other thing that is important about those platforms is the ability they give us to work with advertisers.

One of our main interests in HuffPo is their technology and publishing system. So now we have multiple systems [which he is saying is a good thing]. “Our content strategy hasn’t changed.” The “stuff that was out in the press about the AOL Way” was just one way of doing things. [This is not very convincing]

Arianna, tell us how long you’re going to stay.

8:24 am: Arianna: “I’ve told Tim I want to stay here forever. I want this to be the last act of my life.” Anything I want to do I can do here.

[Sorry, missed next part but it was a defense/explanation of content strategy.]

8:26 am: Armstrong: Arianna has a multiyear contract, but it’s open-ended.

8:27 am: Arianna: By the way, we’re going to bring back commenting to AOL stories, and socialize them.

8:28 am: Q: Why buy instead of partnering? Were there other bidders? Also, how will HuffPo politics affect AOL?

8:28 am: Armstrong: We do partnerships where there is “limited upside to those arrangements” so ” we can really spend time on the areas we want to win”–i.e., we don’t care about sports, we do care about women.

“Arianna is somebody we’d rather have inside our building than outside our building.”

“If there were or weren’t bidders on the other side,” I think we got the right price.

8:30 am: Arianna. “As we’ve said, again and again, Huffington Post was not for sale….Nobody was in a hurry to cash out, everybody believed that we could do an IPO down the road.” It’s just that Tim gave us a great offer. [hrrrm.]

On politics–we used to be all about politics, now we’re not. Just 15 percent of our traffic. We have a divorce section now.

Talking up AOL’s “college” section.

8:33 am: Q: For Arianna: More on Patch, please. What do think about what AOL’s done with it, and what you can do with it?

8:33 am: [Every time Arianna says "local level" I think she's saying "locker level." It's happened at least twice, maybe more, on this call.]

There’s a “greatest person of the day” feature we have, and I think Patch should use that. [Or maybe vice-versa, sorry.] I also like their five percent “giving back” rule, cause marketing, etc.

8:35 am: Armstrong: Again, we can do national and local. That’s important. NFL rights are important, and so are local news stories.

8:36 am: Q: Who’s going to sell what? And can you talk about pricing disparity between AOL and HuffPo?

8:37 am: Armstrong: “We would like to maintain all the people from both sales forces [except for Greg Coleman!]. I think we will end up with a large-scale, large-property organization–I don’t know exactly what that’s going to look like, though.

On sell-through rate: Slightly lower at HuffPo, because they’ve been ramping up traffic, and sales force. On CPM, same story. So we can bring up sell-through rate and CPM, and have a larger sales force. [This is pretty much the best argument for the deal that Armstrong can make.]

[BTW: Good back-channel discussion on Twitter right now about AOL's SEO skills, and the people behind it. None of that coming up during this call right now.]

[Sorry, I meant HuffPo's SEO skills, much of which stem from blueprint BuzzFeed CEO Jonah Peretti set out.]

Q: Why not use equity for this deal?

A: Because our equity is priced too low, essentially. But HuffPo employees did roll over 25 percent of deal consideration into AOL options. So as that equity gets more valuable, they’ll get upside.

8:45 am: Q: In your statement, you talked about OIBDA growth in 2013. More on that please.

Minson–probably going to stick to my prepared remarks on that one.

8:46 am: Last Q: Your acqusitions have been about toolsets or content. As you think about others going forward, what else do you want?

Armstrong: We have long-term vision. On plumbing: We’ve wanted to get platforms and plumbing straightened out, and we’re doing that now. Think about the bones or foundation of a very large property. That’s why we’ve been doing infrastructure, like with video–5Min and GoViral and StudioNow.

Going forward, we’ll be doing infrastructure. And we’ll continue to look at “media properties and media brands” that fit our strategy. [Remember, Web site owners: HuffPo just got 10x revenue.

8:50 am: Minson: But we're very price sensitive and we've walked away from deals.

8:50 am: Arianna: And we like women!

8:51 am: Armstrong sums up: Success "in the Internet space" requires vision and execution. That's this deal. And remember, content and brands become more valuable as tech gets faster, more advanced. And "expect us to stay on strategy and on point" going forward. "We're going to overcommunicate" with both sets of employees as we integrate. [You've been warned!]

And we’re done. Thanks for reading.

[Photo credit: Arianna Huffington]

This debut was supposed to happen a few weeks ago in San Francisco, with Rupert Murdoch and Steve Jobs sharing stage time. Instead, Murdoch will show off his new publication at the Guggenheim in New York, with Apple content boss Eddy Cue stepping in for Jobs.

We’ve got a very good idea of what to expect: A newspaper that’s both old-fashioned and cutting-edge, which will sell for 99 cents a week or $40 a year. And the best way to experience the new publication will be on an iPad, not at a museum.

Still, it will be interesting to hear News Corp. pitch this one in real time, and to see how it leverages all of its resources and a very rare Apple endorsement. (This Web site, we should note, is owned by News Corp. as well.)

10:40 am: Greetings! So excited to be in the Guggenheim that I’m starting this one a few minutes early.

10:44 am: And here’s Jon Miller, who has been shepherding this thing at News Corp. Here’s some fresh scoop! The Daily will be be live onstage for the demo, he says, but won’t appear at the app store until noon.

[Note: The Daily can be found here at the Apple App Store]

10:47 am: Miller is working the room very well; now chatting up Reuters’ Ken Li.

10:48 And Steve Rubenstein, who has been handling PR for the Daily launch. He semi-taunts me by noting that there were tasty canapés at Rupert Murdoch’s private party Tuesday night.

10:49 am: If you’d simply like to watch a livestream of the event, minus my commentary, head to thedaily.com at 11 ET.

10:50 am: That sound you hear is the rustle of departing page views.

10:51 am: Cunning of the News Corp./Rubenstein/event-planning crew to split up the press by species. Gives us something to talk about.

10:52 am: BREAKING NEWS! Jon Miller says Wi-Fi here at the Guggenheim has been working “intermittently.”

10:52 am: WAAAAAAY More interesting is that Engadget’s Joanna Stern being hassled for daring to take out a camera during a press conference. She is being moved three seats back. Where that’s OK, apparently.

10:56 am: Pre-launch music, btw: Some kinda samba thing going on. Festive and, dare I say, a smidge bit sexy. Rowr!

10:58 am: Slightly curious is that registration staff told media that they’ll have “review units” available after presser. But everyone in media has an iPad, right? It’s required, no?

Perhaps the notion is that the presser will end before noon, and the Daily won’t be available until then, so if you want to get hands-on in the meantime, that’s the way to go. Which would be smart!

On the other hand, if they’re simply handing out free “review” units to the press, well, that’s kinda smart too. Because the press likes free stuff.

11:03 am: Our crack tech guy Adam Tow tells me TheDaily.com site is now saying that the app will be available at noon ET. I can’t see that on my screen, but I’ll take his word for it.

Especially because that’s what Jon Miller said a few minutes ago.

11:05 am: Given News Corp. pub WSJ’s focus on privacy, and Apple’s, interesting to review the Daily’s:

When you use the Services, we may collect certain non-personally identifiable information about that use. For example, in order to permit your connection to the Services via the Internet, our servers receive and record information about your computer and browser, including potentially your IP address, browser type, and other software or hardware information. If you access the Services from a mobile or other device, we may also collect transactional information such as a unique device identifier assigned to that device (“UDID”), your geolocation, or other transactional information for the device in order to serve content to it. We also may use cookies and other tracking technologies (including browser cookies, pixels, beacons, and Adobe Flash technology including cookies), which are comprised of small bits of data that often include an anonymous unique identifier. Websites send this data to your browser when you first request a web page and then store the data on your computer so the web site can access information when you make subsequent requests for pages from that site. We may use these technologies to collect and store information about your use of the Services, such as pages you have visited, search queries you have run, and advertisements you have seen.

11:06 am: And we’re live. Here’s Rupert Murdoch, iPad in hand.

“Good morning. I’m Rupert Murdoch.”

Thanks for the “amazing Steve Jobs,” a man who has “single-handedly changed the world” of technology and media.

“Steve has been a champion of the Daily from day 1.”

“New times demand new journalism.” [hrm]

Trying to take best of traditional journalism, including “shoe-leather reporting” editing, “a skeptical eye” [hrm!] and combine them with awesome tech.

“”Simply put, the iPad demands that we completely re-imagine our craft”

Shooting for audience that is sophisticated and reads a lot, but not print.

We have that, but it’s niche. No “true news discovery.” The magic of newspapers “and great blog” lies in “serendipity.”
True!

Similarly, we must make the business of news-gathering viable again.

Goal is to be indispensable source for news and entertainment. “A robust new voice.”

Shout-outs to Jesse Angelo and Greg Clayman, who run editorial and business, respectively, for the new pub.

Daily will be 14 cents a day–99 cents a week–because no printing, delivery costs, etc.

More superlatives for the Daily, including a “sense of fun.”

Target audience is “tablet” audience–[note emphasis on tablet, not iPad].

And a shout-out to Jon Miller, too.

[Unless I misheard and it was News Corp. CTO John McKinley.]

“We believe the Daily will be the model for how stories are told and how they’re consumed.”

And another shout-out to “all our friends at Apple”

Okay. Here are Miller, Angelo, Clayman.

11:13 am: Miller starting off. Not a demo–this is live production.

Trying to figure out how to produce new news for tablet era. “We think we’ve developed that.”

Angelo shows off home screen of the Daily, with Egypt as main headline. Applause.

Have been doing live production for about six weeks.

11:14 am: They have a reporter on the ground in Cairo right now. Josh Hirsch [sp?].

Lots of big pictures, video embedded in text.

And here’s one of the 360-degree photos. Which look cool!

Can put audio behind them, etc.

HD video–here’s a clip about prisoners making toys in Angola prison. Note the bluesy background music. ’Cause it’s about a prison, duh.

11:16 am: Back to Miller. Have rethought navigation.

11:17 am: Back to Angelo, showing off swipey carousel. Sorta silly to describe this to you in a liveblog, but there’s a “play” function and a “shuffle function,” and a video anchor who will discuss the main stories of the day.

11:18 am: Back to MIller. “The Daily is not an island” can share to Facebook, Twitter, email.

11:18 am: Angelo: We can also pull HTML5 pages into device. Can also link out. [Subtext--we are TOTALLY NOT ignoring the Web, you dummies. We're not idiots.]

Bringing Twitter feeds directly into app. So you can see what Lily Allen (used to be semi-famous a couple of years ago) has to say about something.

11:19 am: Miller: We have apps and games section, with a link directly to Apple Store.

And we have an awesome sports section [sounds familiar!].

11:20 am: Angelo: Yes, check out our awesome sports section. Troy Polamalu talking about Clay Matthews’s hair.

“For sports fans, we really think this is the showstopper”–customizable sports filter by team/sport, brings in scores, tweets, etc.

11:21 am: Miller: Publishing once a day, with updates throughout the day “as the news warrants.”

Verizon sponsoring first two weeks of free subscriptions.

11:22 am: The art in this liveblog, by the way, is coming directly from livestream. Nice job, Adam Tow.

11:22 am: Here’s Eddy Cue. Never seen him before. A very, very, very big deal in media circles.

Running through iPad, iOs success. iPad customers are huge news eaters. 200 million news apps downloaded so far.

I’ve been using the Daily for the last two weeks. “It’s amazing.” Amazing that it’s done every single day. More superlatives, etc.

Basically, a repeat of what Miller et al just said.

Okay. Here are the new details on push subscriptions. First time Apple has used this tech. 99 cents a day, $40 a year. [ahem].

11:26 am: And now, oddly, press conference comes to a halt for a photo opp.

11:26 am: Waiting for them to set up chairs for Q&A.

Questions and Answers

How will back issues be handled? Where will old copies be stored?

Angelo: Best thing to do is to save articles you care about. And it will also be archived on the Web. Internal archiving not there for 1.0.

Q: When will other pubs start using subscription option?

Announcement “very soon for other news publications.”

Q: How will you measure impressions, etc. for advertising?

Miller: Will have tech built into app for that. I should have mentioned during presentation that we love advertisers.

Q: For Rupe: How will you measure success?

A: We want to sell millions. But keep costs low. We have spent $30 million so far, “all of which has been written off in figures we’ll announce today.” But overall costs $500,000 a week going forward.

Q: Another question about subscriptions.

A: A non-answer from Cue.

Q: Who/what does Daily compete with? And how will other News Corp. properties be integrated?

A: Miller: Gotta compete with everything. “you’re competing with Angry Birds at some level.” [Hey that's my line!]

Murdoch: In NY, for example, we already have multiple outlets competing with each other. This is another.

Q: What about breaking news? How will that work?

A: Angelo talking up twitter feeds, sports scores, but “we can drop in a new page if we want to, and we will.” BUT! As a conusmer, I don’t like Web sites that change constantly. It’s not a great experience. [THAT IS: This is a newspaper, not a Web site.]

Q: What’s the political tone of this thing. Centrist, right?

A: Murdoch: “The editorial position will be in the hands of the editor.” Cue Angelo, who sorta hedges. On op-ed page, “We’re patriotic.”

Q: Someone wants to know if Rupert is really into this. Also, will there be an Australian version?

Murdoch. Duh.

(An Australian version “always a possibility.”)

Q: Why do this with the Daily instead of existing brands. Also, what’s up with your phone hacking newspapers in the U.K.?

A: Murdoch: Existing tablet apps are what got me excited about launching a new one. No comment on “the other matter.”

Q: You’ll be working with other tablets besides iPad, right?

A: Murdoch. Yes. And “we’ve been quite honest with Apple about that.” We’ll defnintely be on all platforms. But Apple will be the dominant one this year, in my opinion.

[Sorry, missed a Q. Seems to be about what apps Murdoch likes.]

Q: More about the editorial voice, please.

A: Angelo: Thinking it through. We know that people spend a lot of time with these apps–35 minutes, 40 minutes. “It’s unbelievable.” So how do you create content rich enough to keep people there?

Q: What did Steve Jobs say about this in the last couple of days?

A: Murdoch: “He did call me last week” and told me app was “really terrific. He was extremely flattering.”

Q: How will people find this stuff, since it’s not on the Web?

A: Cue: We’ve downloaded 10 billion apps. People can find this stuff.

Miller: We feel really good about this. We didn’t want to make compromises.

Q: I ask about what’s available on the Web.

A: Some of it will be mirrored on the Web, when it can be done technically. [Sorry, hard to type and write.]

[Sorry, now even more confused about what's available on the Web and what isn't. Going to have to follow up with the gang later.]

[Where's Greg Clayman, by the way?]

11:47 am: Q: How do you balance a subscription model with a large audience that advertisers want?

Murdoch: “They’d pay a much lower rate per thousand if it was free. They realize it’s something that people want.” And we can tell them more about who sees it. “It’s not just scattered out there….We’ll draw a better class of advertiser, and a better rate.”

11:48 am: Q: What’s the split between ad and subscription revenue?

Miller: Subscription will be larger at start, and then eventually 50-50, “which is the magic number.”

And we’re done. Will try to follow up, may have more answers/comments here, or in a separate post. Thanks for checking in!

Here is the press release announcing the Daily:

Introducing The Daily

First National Daily News Publication Created for iPad Launches today in the Apple App Store

New York, NY, February 2, 2011 – Today Rupert Murdoch, Chairman and Chief Executive Officer of News Corporation, unveiled The Daily — the industry’s first national daily news publication created from the ground up for iPad.

“New times demand new journalism,” said Mr. Murdoch. “So we built The Daily completely from scratch — on the most innovative device to come about in my time — the iPad.”

“The magic of great newspapers — and great blogs — lies in their serendipity and surprise, and the touch of a good editor,” continued Mr. Murdoch. “We’re going to bring that magic to The Daily — to inform people, to make them think, to help themengage in the great issues of the day. And as we continue to improve and evolve, we are going to use the best in new technology to push the boundaries of reporting.”

The Daily’s unique mix of text, photography, audio, video, information graphics, touch interactivity and real-time data and social feeds provides its editors with the ability to decide not only which stories are most important — but also the best format to deliver these stories to their readers.

“News Corp. is redefining the news experience with The Daily,” says Steve Jobs, Apple’s CEO. “We think it is terrific and iPad users are really going to embrace it.”

Led by Editor-in-Chief Jesse Angelo and Publisher Greg Clayman, The Daily is the first application made available on the App Store as a subscription — which will be billed directly to an iTunes account. And because this paperless paper requires no multi-million dollar presses or delivery trucks, it will be priced at just 99 cents a week (or $39.99 for an annual subscription).

“The Daily launches at a moment when advances in technology are changing the job of the modern editor,” says Mr. Angelo. “These advances are giving us new ways to tell stories. We intend to take advantage of all of them, and make The Daily the new voice for a new era.”

Each day The Daily will publish up to 100 pages focused on six key areas: news, sports, gossip and celebrity, opinion, arts and life, and apps and games. It will offer views from across the political spectrum. They will come from across cultures and generations, across America and the world.

The Daily will feature Sudoku and crossword puzzles, localized weather reports, and a customizablesports package that captures news on the user’s favorite teams. Subscribers will also be able to leave comments on Daily stories in either written or audio form — as well as bookmark them in-app to read later.

As readers move through The Daily’s content, they will be helped by several highly intuitive navigation tools. And while The Daily lives on the iPad, most of its articles can be easily shared via Facebook, Twitter and email. The Daily will link out to the web, as well as bring the web into the app.

“In short, says Mr. Murdoch, “we believe The Daily will be the model for how stories are told and consumed in this digital age.”

The Daily has bureaus in New York and Los Angeles, as well as stringers across the country. Full companybios are available at TheDaily.com/about. Executive staff includes:

John Kilpatrick – Executive Creative Director
Steve Alperin – Managing Editor
Mike Nizza – Managing Editor, News
Richard Johnson – LA Bureau Chief
Sasha Frere-Jones – Editor, Arts & Life
Chris D’Amico – Editor, Sports
Elisabeth Eaves – Editor, Opinion
Peter Ha – Editor, Apps, Games and Technology

The Daily is also changing the way advertising is offered and consumed within a news publication. Full-page ad units are completely interactive, customizable, and offer a rich mix of branding and direct response opportunities. Launch advertisers include HBO,Macy’s, Paramount, Pepsi Max, Range Rover, Verizon, and Virgin Atlantic Airways.

“With The Daily, Rupert Murdoch has given us the chance to rethink the entire experience of news delivery and consumption,” said Mr. Clayman. “The ability to actively listen to and engage with our audience means we can continually provide an experiencethat consumers value in this fast-evolving tablet space. Together with our customers, our advertising partners, and the team at The Daily, we are excited to create a new form of media.”

About The Daily
The Daily is a first-of-its-kind daily national news publication built exclusively as an application for tablet computing. It provides readers the engaging experience of a magazine combined with the immediacy of the web and the need-to-know content of a newspaper, all while elevating user experience beyond the printed word. The Daily is a subscription-based news product, published 365 days a year, at the cost of $0.99 cents a week or $39.99 a year. For more information on The Daily go to: www.thedaily.com.

Finally, here are screenshots from The Daily’s listing in the App Store:

We’ll also see what they have to say about the Yahoo search partnership and its efforts to catch up with Google (and trip them up with antitrust headaches).

Liveblog

Okay. I’m onsite and nearly caffeinated. Yes, there are donuts, but Mobilized is going for the savory option.

10:03 am: Still waiting for things to get started here.

10:04 am: Microsoft search engineering head Satya Nadella comes out. “Okay, let’s get this thing underway.”

10:06 am: First up, some momentum stuff. Share is at 11.8 percent per comScore numbers released yesterday, up another 0.2 percent from October. Overall up 48 percent since launch. “We’re very, very happy with that growth.” Now over 90 million users, but the big deal, he says, is more heavy searchers. “We never had the fans of Bing and the heavy users,” Nadella says.

10:08 am: Nadella says Bing is still getting a larger percentage of 18- to 24-year-olds than its share of searchers as a whole.

10:09 am: “These are footholds that we have in the marketplace,” Nadella says.

10:11 am: Continued focus on specialized verticals (like travel, music, health, image search etc). Overall, such searches account for five percent of all queries, but specialized search makes up of 10 percent of Bing’s searches.

10:12 am: Partnerships: Yahoo is obviously the big one, but Nadella shows slide with Facebook, Twitter, Verizon., BlackBerry, Apple, Android, Foursquare and other logos.

There ave been 5.5 million downloads of the iPhone app.

Nadella says the toolbar deals are also important: They just give us a shot at acquiring the users. They have another one coming with Conduit. Also, they are now at least an option on iPhone and Firefox.

10:16 am: Nadella says the engineering team is focused on three areas, beyond the “arms race” of overall search quality–increasing the visual organization, task-centered nature and social elements of search.

“We’re neck and neck in terms of search quality and we are able to maintain it,” Nadella says.

10:18 am: Lots of talk about the ins and outs of search tech. Nadella says Microsoft has moved from a “neural net” approach to “boosted decision trees.” (No idea what that means.)

10:22 am: Effort to make search more social is important, but just beginning. “This is a journey we are at the very beginnings of,” Nadella says, but says social will change search in terms of how results are discovered, formulated and answered.

10:24 am: Nadella is talking about the importance of visual highlighting to call out various results as well as boosting interactivity, such as including forms within results so users can take action.

Still waiting for any new stuff, but we’re told it’s coming.

Nadella says the company has broken down a list of the tasks people are trying to do when they are trying to do more than just navigate to a particular site.

“We have a pretty granular understanding just looking at the query stream of what people are trying to get done.”

Microsoft has broken it down to some 150 categories, but here are some of the top ones: 4.6 percent of searches are music related, 1.8 percent clothing and shoes, 1.6 percent consumer electronics, 1.1 recipes, 1.3 percent home furnishings.

10:29 am: On to some new stuff.

New image search launching today, but first Microsoft is talking about visual search for things like finding movies and giving direct answers for some new types of queries.

10:31 am: Microsoft is talking about any sort of non-search result as “answers.”

In one case, an “answer” for the query “let’s make a deal” would be video episodes of the game show.

But Microsoft says that automatically putting it at the top is not necessarily best. What the company says it should do instead is put it below the first two results, such as the show’s homepage, which get more clicks than the video.

10:35 am: Also when a user searches flights from Denver to Las Vegas in June, Microsoft pre-populates the fields in a flight search with a guess at the dates, in this case the first weekend in June.

10:38 am: New image search represents first major changes in a year. Biggest shift is white space is gone with just a ton of tiles of images, with some categories at the top.

For example, search “Casablanca” and you get an option for the city in Morocco, another for the movie, a third for the style of wedding dress and another for the Casablanca Lily flower.

10:40 am: On to shopping. Quadrupled the number of products in its database.

10:43 am: Bing is adding a new focus on places as “destinations” with all the potential content from booking a flight or hotel to maps and attractions.

Which is nice, because I’m ready to go on a vacation right about now.

They use weather data to show times to go to and times to avoid a particular place.

10:45 am: Microsoft is beefing up event listings with partnership from FanSnap and other partners. You get ticket info, diagram of stadium, etc.

10:50 am: Back to social. Nadella says search can change by using one’s social graph to influence search results.

First example, you will start to see when your Facebook friends “Like” a page that is in search results.

For now, such results will only come up fairly infrequently, but Nadella says it will be a big deal when you do see pages that your friends have liked.

Search allows the data your friends share on Facebook to come to you when you actually want the information.

“In a way you are taking your friends with you,” says Microsoft’s Paul Yiu.

An example is when you are shopping for a product or going to visit a place–that’s a time when you really want to know what your friends think.

(Seems pretty cool, but wondering just how infrequently this will show up.)

10:57 am: Another example Yiu gives is a search one might do at 3 am for what will make your baby stop crying. There are lots of results, but one that your friend likes might be worth trying first.

11:00 am: Bing is also using one’s Facebook social circle to rank results in people search–i.e., if you have a friend in common, it will rank that “John Doe” higher than one you don’t know.

11:01 am: Nadella is back to talk about local and maps and how that integrates with mobile. Behind him Blaise Aguera y Arcas is pulling out several phones to do a demo. (And they look like iPhones.)

11:03 am: Aguera y Arcas takes the stage to show some changes coming to maps, first on the desktop. He notes the recent shift away from putting its most powerful map features on a Silverlight-powered site. Now it is moving that all to an HTML5-based site that needs no plug-ins.

11:07 am: Bing is bringing the “tasks” concept to searches within maps. A search for a restaurant now brings up not just a map, but more info on the eatery and also the ability to make reservations via OpenTable.

11:09 am: Aguera y Arcas switches to the iPhone. Shows how people can add their own panoramas to maps using a cellphone.

11:13 am: iPhone demo over 3G is going really slow. Aguera y Arcas asks how many of the reporters in the room are using 3G.

11:15 am: Although its going painfully slow, looks like Bing app starts to recognize a restaurant search and pops up options like types of cuisine and price. The goal is to save keystrokes.

Other options are things like get a map, make a reservation, menus, etc.

Still R-E-A-L-L-Y S-L-O-W.

“This bandwidth situation is really going to suck for what I have to demo next.”

He switches to a first-person StreetSide view, but all we see are dots.

“This is so sad,” Aguera y Arcas says, lamenting that we aren’t able to see all the cool stuff. There does seem to be some new StreetSide view stuff on the iPhone app that could be neat, assuming it runs faster on the street than inside this demo room.

11:23 am: We’ve reached a new low. “Close your eyes and imagine….” Aguera y Arcas says, and then describes what the app would do if we could see it.

11:23 am: And they have switched to Wi-Fi. “This is so exciting,” Aguera y Arcas says. Now he’s going back to StreetSide. “That’s so much nicer.”

As for directions, Bing now has bus directions with schedule info in addition to driving and walking directions. “It’s about time,” he says. “I’ve been waiting for this one myself.”

Another feature reminds you to do something when you reach a certain place, like call someone or check-in to FourSquare or Facebook.

11:29 am: Aguera says we are in Search 2.0–where you do more than just search and get results.

Image search is an example. Shows the coming ability to search for something by using a camera to start a search. Basically you can shoot a picture of a page and use any of the terms there to start searching (It uses character recognition in the background).

Questions and Answers

11:32 am: How big a deal is Google Instant?

“We are absolutely studying Google Instant,” Nadella says. Says they could match it. It’s a question of whether it makes task completion easier. “Is it a value or a distraction?” Doing studies and so far Microsoft’s research says it is mixed at best.

“It’s not a game changer. It’s a nice feature at best.”

He hedges a bit on whether it is something Microsoft needs to match.

11:39 am: Mobile features were demoed on iPhone. So when will they come to Windows Phone 7 and other platforms?

Nadella says they now have software for most major phone operating systems, including Android.

“The different devices have different schedules,” he says.

11:42 am: And we’re out of here….Thanks for tuning in.

Although Andy Rubin’s keynote at D: Dive into Mobile is scheduled for just before dinner, expect to hear a lot of talk about dessert. On the menu are Froyo, Gingerbread and perhaps even a hint of Honeycomb.

Google did release a couple of tasty treats already on Monday–announcing plans for the Samsung co-developed Nexus S as well as the release of Android 2.3 (Gingerbread). But I hear the cookie jar isn’t quite empty yet.

In between sugary snacks, Kara Swisher and Walt Mossberg will pepper Rubin on the many issues facing Android and the wireless industry. Mobilized will have live coverage of the session at this spot beginning around 6:45 pm PT.

Liveblog

6:37 pm: The crowd is still settling into their seats here at the Ritz-Carlton San Francisco, the swanky home to the inaugural D: Dive Into Mobile.

6:40 pm: Lights dim. Kara Swisher and Walt Mossberg take the stage. “My husband, Walt Mossberg, and I would like to welcome you to this intimate dinner,” Swisher quips.

6:42 pm: Ironically, the crowd was asked to silence their mobile devices, but Kara says they should just feel free to leave them on.

6:44 pm: It’s Rubin time (and he has brought a satchel of goodies with him).

Rubin is asked about the Nexus One and why it didn’t shake up the business model. “We bit off a little more than we can chew.” Rubin says that they were hoping for a model more like that in Europe, where people can pick a phone and then separately pick service, typically at retail stores like Carphone Warehouse. “We were trying to do that model in the U.S. and only do it online.”

6:46 pm: Kara: So have you given up on that business model?

Rubin: With Nexus S, which is the thing we announced today, we still have that notion of an unlocked phone. But we are not selling it ourselves, but through traditional channels, in this case Best Buy.

6:48 pm: Walt: How is Android doing?

Rubin: Android started as an eight-person start-up. “During that time at Google we obviously staffed up.” Now there are 172 different phone models using Android after the OS was launched two years ago with one, the T-Mobile G1.

Rubin credits the quality of the software and the open nature of it.

6:49 pm: Walt: I notice more and more they are taking on the personality of the carrier, not Google, not the handset maker. There are lots of what I would call craplets. Verizon, for example, swapped out Google for Bing. Is there a danger it is being taken over?

Rubin: That’s the nature of open. That’s actually a feature of Android.

He takes a swipe at Windows Mobile, saying that the alternative is a commoditized world where all the phones have to have a start menu in one place and all the icons have to be tiles.

6:54 pm: Kara: Do you consider yourself the Microsoft of phones in that regard?

Rubin: No. We’re probably more like the Linux of phones, and that’s a true statement.

Walt: You mean hard to get drivers for, only for geeks, no real consumer would buy it?

Rubin: No, I think we’ve already proven that wrong. Bad analogy.

6:55 pm: Discussion about all the crapware that comes on many phones.

Rubin: The consumers are voting and the consumers are voicing their opinions.

6:56 pm: Rubin has some relatively nice things to say about the iPhone.

“I think everybody is embracing the iPhone. They are pretty open.”

Rubin says that most developers actually are having a pretty easy time getting their apps approved by Apple.

6:57 pm: Kara: How do you consider Apple as a competitor?

Certainly they make great products, Rubin says–robust, solid, good user experiences. A lot of consistency across applications. More recently I see them getting involved in the other end of the spectrum–services like a bookstore, the app store.

6:59 pm: Walt: What about Apple’s massive data center? That’s another area of competition for you guys.

Rubin talks about the power of Google’s ad-based model, which allows the core advertising to fund all kinds of applications.

Walt: Do you think Apple has the DNA to do this?

Rubin: “My assumption is Apple is a company that learns from its mistakes.”

7:01 pm: Kara and Walt: Are you profitable? Is Android profitable? Does Android make any money?

Rubin: We’re making money on the advertising that’s generated through Android.

Walt: Are you profitable if it was broken out as a separate business?

Rubin: Yes. [Wow. I'm curious about the math, but maybe if you add all the searches on Android-based devices.]

There’s no way I would have ever been profitable as a start-up. I probably wouldn’t have made it as a separate company.

7:06 pm: Walt: How do you see the rest of the competition beyond Apple?

Rubin: I don’t think it’s ever going to be just two [Apple and Android]. There’s a lot of innovation and a lot of ideas out there.

Rubin says there is a fundamental advantage to Android and iPhone since they are new and designed from the ground up.

He notes even Windows Phone 7 has legacy code from the original Windows Mobile from way back when.

“You just have this package of stuff that was invented before the Internet,” Rubin says. “When the architects built that product, they didn’t have the Internet in mind.”

7:08 pm: Walt: Is there anything you do like about Windows Phone 7?

Rubin: It was a big bet. They struck upon that notion of the centerpiece of the main tiles. It’s a good 1.0 product. It does look different and it does look unique. It’s solid. I’m not the predictor of being successful.

He says if he were to give advice to Microsoft, he would suggest that it give more freedom to carriers and phone makers so the devices don’t look the same.

Kara: Have you gone to Finland to woo Nokia?

Rubin: I haven’t been to Finland.

Walt: Forget Finland, have you tried to convince Nokia?

Rubin just laughs (a-ha).

7:12 pm: Kara: The discussions with Nokia–talk about them in detail.

Rubin: The company has new leadership [referring to CEO Stephen Elop]. They are evaluating lots of alternatives. I’m open-minded and a big proponent of Android.

Rubin again declines to talk about any meetings he may have had.

7:14 pm: What about the challenge of iconic products like RIM?

Rubin: Talks about the challenge of legacy and points out Motorola had that problem when it became overly dependent on the Razr. Then, “they bet the company on Android,” he points out.

Rubin said RIM is doing the right things–acquiring assets like QNX and DataViz to build a more modern operating system.

7:16 pm: Walt points out that RIM will be here Tuesday–PlayBook tablet in hand.

7:16 pm: Back to the discussion about persuading companies to use Android.

Rubin: If it’s good–and we all believe that it’s good–everybody can use it.

“You don’t need to be a partner of Google to run Android.”

7:17 pm: Walt asks about tablets. Are they exciting to you? Are they important to you? Can they replace laptops for some people?

Rubin: I think what is going on in tablets is interesting. It’s fundamentally changing the model of computing interaction.

It is much more physical. You touch it. You feel it.

7:19 pm: What changes in the paradigm? It’s not a laptop. It’s not a phone.

Rubin points out that we used to have PDAs, but the cellphone eventually replaced it. The tablet is a sort of in-between device so the use case is less clear. You might definitely have it on the couch, but maybe not on the subway.

7:21 pm: Walt: What makes it more interesting and more immersive? There is something different there?

Rubin: If you do a good job, what you’ve done is make it a reflex. Like a car. You learn how to drive and you can drive almost any car. You don’t get distracted by things. That’s the result of many, many years of evolution. That’s true of any consumer product. They become almost like second nature for you.

7:24 pm: Kara and Walt ask about privacy.

Rubin: There is nothing in open source Android OS that sends keystrokes or what applications you use to Google.

He encourages people to look at the source code.

Walt: There are Google services that do collect certain things?

Rubin: Yes, like on other platforms. But he encourages people to read the company’s privacy policy.

7:27 pm: How do you overcome the perception that Google wants to collect more information than the others?

I think you just have to be transparent. You have open source–be inspectable. Any other interpretation is either FUD or just people who don’t understand.

7:28 pm: On to the goodie bag. Rubin pulls out a Nexus S. Says it is his personal device.

Kara: Oh good. She grabs it and pulls it close to her.

Now Rubin is showing the features, screen, etc. He’s talking about the Near Field Communications technology that is actually printed inside the back of the case. NFC allows a phone to scan specially printed tags.

Walt: Is that what sends all the information back to Google?

Rubin: Laughs. Goes back to demoing NFC and showing the Nexus S scanning a tag, which sends a URL for a video of the Nexus S to the phone, which then starts playing.

7:31 pm: Rubin talks about the applications: Buying coffee, getting coupons.

What we are hoping is third-party developers create a lot of cool apps. Devices can also use NFC to exchange contact info between two devices as well, kind of like beaming in the old Palm days.

7:32 pm: Rubin is talking abut the Nexus strategy.

To give a “Pure Google” phone. Google works with the hardware maker to take maximum advantage of Android’s features.

7:35 pm: What’s new with Gingerbread?

We added a garbage collector. Added broader voice over Internet Protocol support. Can cut, copy and paste without a trackball.

7:36 pm: Walt: What about video calling? I know there are third-party apps that do that. It seems like a natural thing that it belongs in the phone function.

Kara: FaceGoog or GoogleTime.

Rubin: There’s a whole bunch of software engineers hitting their keyboards back in Mountain View. If consumers want it, we’ll add it. [He strongly hints that it is coming, points out there already is Google video chat for PC.]

7:38 pm: Rubin reaches into his bag of tricks again. Pulls out a prototype Motorola tablet to show a forthcoming version of Google’s mobile map application.

7:38 pm: Shows the improved 3-D abilities and new panning and zooming options. What we are showing off here is some pretty cool performance.

“It will be available for cellphones in a matter of days,” Rubin says.

What allows the new presentation is that maps are no longer a series of tiles, but rather vector graphics.

7:40 pm: Vector data is smaller and more efficient, so users can load data in case they go offline. “You could load a whole state,” Rubin says.

This app runs on Android only for now, though it will work on tablets and phones.

Walt: What about PCs?

Rubin: That would be a natural extension.

7:41 pm: What version of Android is running on that tablet?

Rubin: Honeycomb [the next version of Android, due out some time next year]. There are no buttons on the Motorola tablet. He’s showing his personal email again.

7:43 pm: More on Honeycomb: We added new APIs to Honeycomb that allow an application to split its views to multiple views. On a a tablet they can be side by side, while on a phone they might be one after the other.

7:46 pm: On to Q&A.

7:46 pm: What about the Chrome OS team? What’s the delineation between the two?

Rubin: That’s a good question. Google was born on the Web. “I don’t think it would be doing its job unless it reinvested in the Web.”

But evolution of the Web had stagnated a bit, prompting Chrome. “It’s kind of slowed down a bit.”

Apps vs. Web?

There’s no need to argue. We’re doing both, Rubin says.

7:50 pm: What are the plans for the Android team to focus on the enterprise?

We did a little bit, Rubin says, but he likens it to baby steps. Support for VPN and some secure browsing. Gingerbread has some added features like remote wipe. Each release you will see more and more.

7:51 pm: App discovery. What are your plans?

Rubin: This is all evolving. The Android market is evolving as well. Gingerbread allows “related applications.” We are always adding features.

As a search company, if we can’t help you discover apps, I think we have a problem. We should be very easily able to organize a few hundred-thousand apps.

7:53 pm: Question about mobile payments; What is Andy Rubin’s vision? Groupon?

Rubin: I think there is a lot of opportunity. It is not an opportunity that is going to be seized by one company. Today Android does carrier billing integration, so you can put apps on your carrier bill. Creates an efficient micropayment option.

With Nexus S having added gyroscope capability, can see things from even within a store. Should help make, for example, better coupon apps.

7:57 pm: Android on TVs?

Rubin: That’s exactly what Google TV is. It is Android running on a set-top box. The first versions of that are running an Intel processor.

Have demonstrated the same app can run on both a three-inch screen or a flat-panel TV.

People are building all kinds of things. Refrigerators, ovens, automotive. Rubin says the nice thing about open source is that he and Google don’t have to be involved in every use. “We knew what to do to make it scale as widely as possible.”

7:58 pm: Question about carrier data plans and pricing.

Rubin: Average usage on an Android phone is 440MB a month. Rubin points out we are at a bandwidth crunch, but that it tends to be a cycle. New networks tend not to be overwhelmed by demand at first, but then the demands grow. Then new networks come along.

How should OEMs try to differentiate?

Rubin: I think HTC has done a really good job with Sense. Motorola has Blur. People are really differentiated.

Rubin says he often hears complaints about fragmentation. “Fragmentation” is the wrong word. Different phones do things differently, but that’s differentiation. Basically the apps are still compatible, Rubin says.

8:04 pm: Is Android too clunky? Will we see a sea change where Android really gets more user friendly?

Rubin: I would probably characterize Android today as an enthusiast product for early adopters–or wives of tech enthusiasts.

8:05 pm: Rubin says the company made some concessions that led to “geeking it out.” But then there are apps that offer easier customization and personalization.

8:07 pm: Walt points out places where it requires an extra step to do things like compose an email, while the iPhone does it in a single step.

Rubin: Yep. We get it. You will see the fruits of that investment in the tablets first and then in the phones. It’s going to get better. Honeycomb will be a good start

8:08 pm: Applause and they exit stage. ‘Night.

Palm-CEO-turned-HP-exec Jon Rubinstein and Qualcomm CEO Paul Jacobs faced off with Kara Swisher of All Things Digital at a Churchill Club event last night in an entertaining discussion on the future of mobile tech.

If you missed the live video feed of the event, check back with us–we’re working to repost the video. For those who want to read text, here is my liveblog of the event.

6:48 pm PT: We’re just finishing dinner. It was a chicken in some sort of puff pastry. Nothing is happening onstage, as if that wasn’t clear by the fact I am describing the meal. I think they will get started around 7:15 or so.

7:10 pm: Just about ready to go, with intros going on now. (And I just stole Kara’s seat at the head table.)

Kara: They’re both guys. Paul is taller and they work in tech.

7:14 pm: The plan is to talk about the future, but the event begins with a trip down memory lane as Jacobs holds up the Qualcomm PDQ–arguably the first smartphone combining a cellphone and Palm Pilot. For those who don’t remember, it it was bigger than a Palm Pilot and a huge phone strapped together.

7:20 pm: Digital device history continues. We’ve traced the last decade in digital devices, from the iPod through the Treo and iPhone. Don’t forget ringtones and cellphone bowling, Jacobs reminds us, referring to the Brew operating environment that Qualcomm developed.

The iPhone changed everything, Jacobs says, because it showed that the phone makers just weren’t putting enough work into the phone’s user interface.

7:28 pm: Talk is shifting to where we are today. What are the key things that are shifting? User interfaces, touch, etc. “The other things we are seeing is all of our lives are moving into the cloud,” Rubinstein says. On the limitation side, Jacobs points to the limitations of bandwidth: “We don’t have enough spectrum right now,” Jacobs says, adding that the industry and government are working on it. ‘We are just going to have to be more creative about how we get content to the devices.”

The other big limitation, Jacobs says, is battery life. You can do all this cool stuff on your phone, but then the battery dies three-quarters of the way through the day. He puts in a plug for Mirasol–Qualcomm’s low-power display technology.

Rubinstein concurs that battery and bandwidth are the two biggest issues. “Battery technology has not progressed at the same rate as all of the other things we are trying to do,” Rubinstein says.

7:38 pm: What about all the operating systems out there, Kara asks. Rubinstein: “There’s plenty of room in the market for multiple systems,” he says, adding it won’t be like PCs, where one operating system dominates. “It’s just different today.”

Rubinstein says it’s still the infancy of the major transition. Put on the spot to rank the operating systems, Rubinstein says that clearly Apple and Android are going gangbusters. The battle, he says, is for who is going to be No. 3. “We’d sure like to be that.”

Jacobs: “I agree. It’s very early days to be calling winners and losers.” He sees pretty wide diversity of operating systems, at least for the next five years, unless the operators really clamp down. Even then, there are some alternate distribution channels emerging. Either way, Qualcomm’s in good shape as an arms dealer, he points out.

7:45 pm: Discussion of carriers. While they are immensely powerful, Rubinstein says they won’t be the only distribution channel for every wireless device. “They are not all going to go through the carriers,” Rubinstein says.

More and more screens will emerge, Rubinstein says. If I fast-forward enough years, he says, the walls are going to be big displays capable of talking to other devices.

Jacobs notes that people will be able to use their device with any tool they have access to, from a big screen to a headset to a wireless keyboard. He says Qualcomm is working on a technology that would allow wireless headsets that could work in-ear like a hearing aid.

7:50 pm: Talk about some outlandish things. Rubinstein has already thrown out the idea of a headset in your pillow. Rubinstein points out that there will be a lot of sensors, pointing to the Nike+iPod as a really early example of what we can expect a lot more of.

7:55 pm: Augmented reality is also going to be big, the panelists agree. “The (StarTrek) tricorder is going to happen,” Jacobs says. Health care will also tap mobile technology, particularly in emerging countries where there is less regulation, carriers are trusted and there are fewer skilled health care providers available. “It’s a very efficient way to manage health,” he says. “Over the next few years we will see this happen,” he says. Eventually it will come back to developed markets, but today there is too much legacy and too much regulation in places like the U.S.

8:10 pm: Sorry for the delay–we were fixing some issues with the video coding, which hopefully should be solved now. Anyway, Rubinstein and Jacobs have been throwing out things that they expect in the next five years.

Jacobs’s list includes digital networked textbooks, cellphones as gateways for health care, as well as using augmented reality to translate all the signs and menus in a foreign country.

Rubinstein and Jacobs both see a digital wallet becoming a reality, with Jacobs throwing out the idea of an end to checkout lines as the phone could pay and the store could electronically disable the security on goods, allowing the whole transaction to take place without interaction with store personnel.

“Legal shoplifting, that’s interesting.” Kara says.

The technical hurdles aren’t that big, Rubinstein says. “Clearly NFC (near-field communications) is coming.” It’s more of a social problem than a technical one, Rubinstein says.

8:21 pm: Some good audience questions. One, on what does it take to deliver an Apple-like experience. Rubinstein, who has experience as part of Apple and trying to “out-Apple” Apple, says he thinks that the key is delivering an intergrated experience.

“I don’t think Apple is the only one that can do it, but I do think it is important to have all the elements,” he says.

Another question is on the future of mobile TV–a question that prompts Jacobs to cover his face (Qualcomm spent a bundle on its MediaFlo mobile TV service that saw very limited consumer uptake and Qualcomm is now evaluating what to do with it).

Too few people liked what the service had to offer, Jacobs says, referring to limits on content, screen size, etc. Jacobs said it appears that probably broadcast makes sense for live events, while streaming with TiVo-like controls makes sense for everything else.

“I actually believe strongly in mobile TV, still,” he says.

8:30 pm: Okay. That’s a wrap from me. Thanks for tuning in. If you want to hear more from Rubinstein, he will be speaking at next week’s D: Dive Into Mobile conference.

But the troubled Web property is a…really troubled Web property, its News Corp. parent stressed today. And it needs to get its act together before it gets kicked off campus.

That’s the message that COO Chase Carey took pains to get across during his company’s earnings call this afternoon.

Revenue at Myspace was down $70 million compared to the same quarter a year ago, the company said, and “traffic numbers are still not going in the right direction, Carey said. Which means that its “current losses are not acceptable or sustainable.”

Okay. But Myspace has been in decline for some time, and Jon Miller and Mike Jones have been trying to fix it for more than a year. And last year at this time, we heard a similar assessment, only then Carey kept calling the site a “work in progress.” So how much more time do they have?

Carey: “We judge in quarters, not in years.”

My understanding is that when Miller took the job as News Corp.’s chief digital officer in the spring of 2009, he believed he had a real shot at fixing the social network, which had already cooled from red-hot to not at all.

But sources in and out of News Corp. tell me that Miller and his team are now merely hoping to patch the service long enough to find a buyer. Perhaps no one has told Carey, who seems to be conducting an anti-sales pitch.

——————-

EARLIER:

First look at Rupert Murdoch’s latest report card: News Corp. ended the September quarter with revenue of $7.4 billion and earnings of $0.27 a share (after factoring out a one-time tax gain). That’s almost exactly what the Street was looking for–expectations were $7.4 billion and $0.24 per share.

A quick run-through by unit:

• Cable: Up, because ad dollars are up and so are those affiliate fees that cable providers don’t want to pay but do.
• Movies: Down, because last year the company had an “Ice Age” movie in its results, and this year it’s fairly hit-less. It is making money selling reruns of “How I Met Your Mother,” though.
• Broadcast TV: Up, because local TV stations are doing better than last year, when they were still crippled by the recession.
• Satellite: Down, because costs were up.
• Publishing: Up, because newspapers are doing better than last year, when they were terrible. Ad revenue is up 13 percent worldwide. (This is where I note that News Corp. owns Dow Jones, which owns this site.)
• Random other stuff: Down, in large part because of Myspace and the rest of News Corp.’s digital unit, which is still trying to turn around.

I’ll come back to liveblog the conference call at 4:30 eastern, in the hopes that Murdoch says something interesting about politics, pay walls, the economy, Myspace, Apple and/or Google. He usually does!

LIVEBLOG:

BIG bummer: No Rupert on call today–because he’s traveling. (Some place with no phones? What’s up with that?)

CFO Dave DeVoe running through segment performance.

Cable: Some boasting about Fox News, FX, Big 10 Network, etc.

Movies: Nothing new here.

TV: TV stations up, but broadcast network losses up big “from higher cancellation costs.”

Satellite: [Apologies, had to duck out for a second.]

Newspapers: Again, ads up in all big newspapers.

Other/Digital: $70 million lower search and ad revenue at Myspace y/y.

Guidance: Leaving unchanged (though DeVoe notes that Myspace is still under plan).

COO Chase Carey:

Lots of focus on our retrans deals, and they are “critical” to our future. “We will be taking this business to a whole new level of profitability.”

Lots of growth ahead in International pay TV market.

Walk through of “key initiatives” throughout the company.

[Still sulking over Rupert-less call.]

Fox Film hasn’t had breakout hits, but no stinkers “in an industry known for them.”

We’ve got Jim Cameron locked up for Avatar 2 and 3, you know. And Modern Family is going to make us a pile of money in syndication.

Wish the World Series wasn’t such a bummer, and a short one. But NFL on Fox doing great.

WSJ still growing. Building digital business that “will take time to emerge.” “We feel very good” about subscription business in U.K.

“We’ve been clear that Myspace has been a problem.”

But relaunching “and we feel really good about” it. “Current losses are not acceptable or sustainable” and current management knows it, even though it’s not their fault.

But we know that we have to work very hard in coming months to get this thing sustainable.

[This is some of the most negative commentary I've heard yet from News Corp. on Myspace. Hard to sell an asset when you're describing it this way.]

Q&A:

Myspace: How much time do you give the relaunch to figure out if it’s successful. And what if it’s not?

Carey: We judge in quarters, not in years. Goal is to get to a place where top-line revenue is going in the right direction and “a clear path to profitability.”

We feel good about the relaunch. But “our traffic numbers are still not going in the right direction” and we have to stabilize that.

Fox TV content on digital platforms: It’s available on Hulu and Fox.com. How is that strategy going, and will you continue to be open?

Carey: Broadly: “This digital arena is still evolving.” We’re very focused on managing rights. Key issues: Windows, ad load, pricing. [Not answering at all, really.] “We think the digital arena is a very important one” particularly mobile, iPad, but “look, scarcity of our product is a real value.” But we’re learning as we go. “I do think it’s important that the digital platforms continue to develop dual revenue stream options.” That’s critical, and options are just beginning to evolve.

More on Myspace: There are a lot of operations in “other” besides Myspace: Mobile, Fox Audience Network, etc. What else could improve there?

Carey: Only two other businesses in there: Mobile, and outdoor networks, (and IGN). Not a lot of room for growth in those businesses.

So it’s really about Myspace?

Yes.

Avatar: What’s upside here?

Carey: Sequel to the most successful film ever? It should be pretty good! “Enormous events, without comparison or rival.”

[Please bring Rupert back!]

Please talk about terms of new Cameron deal?

Nope.

On retrans: Cablevision said they got better terms by holding out for a couple weeks. How do you react to that? If true, will we see more of these holdouts?

[Also a question about BSkyB I'm not that interested in.]

Carey: Mostly I saw Cablevision complaining that the government didn’t bail them out. But we feel pretty good about where we are. We didn’t think the government needed to get into it, and it would have been nice if the government would have been clear up front “it may not have gone off the air at all,” but whatever–”this was a matter to be dealt with between private parties.” [Ignore all those press releases we sent out!]

Can you talk about advertising trends and expectations?

DeVoe [I think]: They haven’t changed.

Cable margins: How long can you keep growing them?

Carey: We have room to drive a number of our channels, via more distribution, jacking up fees, advertising, etc.

What about getting more money from regional sports networks?

Carey: Won’t get into specifics.

[We want Rupe! We want Rupe!]

International channels seem to be doing well. Where is that growth coming from?

Carey: Part of it is the weak U.S. dollar. But overall, growth is “big and broad.”

Oh man. Even Chase Carey is yawning as he answers the question.

[Skipping accounting question.]

Back to network TV: Please talk about sports programming costs, etc. NFL, baseball, NASCAR. You spend a lot. Does retrans help support those costs? Or will you move some of that to cable?

Carey: I don’t think it makes sense to differentiate broadcast and cable much anymore. That’s the point of retrans–to make broadcast look like cable, with dual revenue stream.

On sports: It’s expensive, and draws big crowds. “It’s a unique strength in a world of DVRS” but “they come with big price tags.” We’d like to continue running it, but we have to do it at the right price.

Retrans does help, though–networks that are only ad-supported won’t be able to pay for these rights over time. Still, gotta be disciplined, etc.

Back to digital: What’s going on with Google TV? Are you thinking about different devices and different screens as a way to window, instead of calendar? I.e.: Make it available on PC but not on the big screen, etc.

Carey: I think within the house, the difference between screens won’t matter. I do think mobile is a discrete platform. [And some general chatter about tablets.]

But generally, “our content is incredibly valuable” and “we’re not going to throw it out there for everybody” unless we get compensated for it.

[Boring question about syndicated TV. Carey flipping through papers]

Hey, what about M&A deals, like Yahoo?

“Things like Yahoo are because the press needs things to write about.” [Zing! Also, hey, Jon Miller!] “We don’t need to make any acquisitions. But if there’s something out there, we should consider it, but we’ll do it in a very disciplined way” like we have in the past. Generally, we’d rather build than buy. “But if we see something we can acquire at a very attractive price that fits, we’ll take a look at it.” We’re not shopping.

[Skipping another cable channel question.]

Time for press Q&A:

How do you make broadcast look more like cable?

Carey: Retrans fees, like we’ve been talking about for the past couple years.

What about doing “premium video” (windowing movie release on TV?).

Carey: Looking at it.

What about further delaying movies to Netflix, Redbox beyond 28-day window (Warner talked about this today)?

Carey: We’re okay right now, but we’re looking at it. But as VOD grows, windows will change and evolve. But right now “we feel what windowing we’ve done has been good for us.”

Color on Apple TV 99-cent rental, please:

Carey: It’s pretty new. Only relevant for the past month or so. Too early to judge.

What’s your vision for European and British markets after you buy Sky? Will you buy Endemol?

Carey: Don’t really want to talk about it, too early.

Please talk about Times of London pay wall performance to date. Also, what are you thinking about your iPad newspaper in the U.S.?

Carey: Re U.K.: “We feel very good about it. Realistically, it’s very early….This is not something that’s a one or two quarter game.”

Same thing with the “whole digital arena” evolving, etc.

Hah. Refuses to talk about iPad newspaper. Which is not a newspaper!

Call finished, mercifully.

Later today, BoomTown is being force-marched back into Facebook’s Silicon Valley HQ for yet another press event.

Recently, there has been one for Facebook Places, another for the new sFund for social start-ups and another for, well, I forget.

But there will be lunch!

This time, it is a “mobile event” and the invite–seen above–shows two cups and a string.

While rumors of a Facebook phone seem unlikely to be the topic of the day, it would be cool if Facebook made the first DixieCupPhone.

Other possibles: An Apple iPad app, some more smartphone integration, a Groupon social deals competitor and, likely, some dull new technical information from the social networking giant.

Until the 10:30 am event, from which I will be liveblogging, here is a very funny image of an alleged FacePhone by the most excellent Sean Percival:

BoomTown motored on down to the Microsoft campus in Silicon Valley on a fabulously sunny day to liveblog the latest Bing event.

The software giant is updating its search service, announcing deep integration–part of a deal announced last year–with Facebook.

The theme, according to Microsoft (MSFT) SVP Yusuf Mehdi, quoting the Beatles, was search with “a little help from your friends.”

Let’s hope it’s not: “Help, I need somebody.”

11:35 am PT: Mehdi kicks off the show, announcing the line-up, which includes Facebook CEO and co-founder Mark Zuckerberg.

Well, it just got 100 percent more interesting here in this nondescript auditorium.

Mehdi talks a little bit about the future of search and making it better. He talks about social being an important part of it.

While I’d have gone with Barry Manilow, he quotes the Beatles.

Mehdi is followed by Microsoft Online Services Division President Qi Lu, who throws more love bombs at Facebook.

“With the partnershop of Facebook and Bing, we will be able to unlock…how people in a social relationship can be first-class citizens in a search experience,” said Lu.

It sounds so lofty, even though it is mostly trading movie review recommendations or good places to take the kids on a rainy Sunday.

Lu thanks Zuckerberg effusively and invites him onstage.

11:54 am: No hoodie.

Zuckerberg is also “honored to be here,” giving us a little history lesson about the origins of the social networking giant and its various and sundry efforts.

I’ll be honest, the lack of donuts is making me distracted.

He’s not actually saying more than bromides about “what would social search look like.”

And looking around at who would be the right partner in the arena. Microsoft! Of course! That giant investment way back when was nice too!

“They’re really the underdog here,” said Zuckerberg in the first interesting comment, noting that overdogs–that would be Google (GOOG), which he does not mention by name–never innovate much.

His take: Underdogs are the best.

12:01 pm: Mehdi is back to show off the wares in a demo.

First, what’s there. Web search in Facebook and Facebook status updates on Bing.

Zzzzzzzz. Get to the good stuff!

First, a module that brings in a Like module from Facebook into the search, with all the other information provided by Bing.

It is, said, Mehdi, particular for a person.

“This is going to profoundly change how we search,” he said of personalized experiences.

Mehdi also shows off a way to differentiate your friends who have names of famous people, who are the ones who come up on search first.

Interesting, but people search is not the biggest problem I have.

He also says more is coming, such as friend experts surfacing in search and Like in every result on a page that it was possible. Yipes!

Also, thank the Lord, the ability to turn it off.

12:15 pm: Now Facebook exec Dan Rose comes up and starts talking about the Facebook-Microsoft bromance.

Apparently, four years is an eternity in Silicon Valley in terms of a relationship.

Actually, four weeks is long, so congrats you two crazy kids!

I’d celebrate with a donut if they were here.

“More and more” social in Bing, said Rose.

It’s a match made in digital heaven!

12:22 pm: Q&A time!

So what more? The press is so unsatisfied! Yes, we are.

Zuckerberg takes the lead. New interfaces! More!

A privacy question. “This is Instant Personalization,” said Zuckerberg, who said that Facebook has five partners in that effort.

He explains Instant Personalization, saying he wants to clear up misconceptions.

It’s private enough, you oversharers!

“Just because it is all public information about you, this is really good,” he said.

But is it by default? Of course, it is. That’s Facebook modus operandi!

Opt-out should be tattooed on employees at Facebook as a requirement.

Bing does put up a warning at the top of the page, but only five times. Then, you need to go foraging to turn it off.

Next: Does Bing search queries get sent back to Facebook? Not necessarily.

But, “everything is going to be social eventually,” said Zuckerberg, as long as it is public.

Public is apparently the new black.

More questions about new Facebook Groups and other deets, none of which is that bracing.

Apropos of nothing, I am considering asking a question about the ever-exciting Hewlett-Packard (HPQ) scandal, just to jack up the volume.

I try to ask a question about Zuckerberg’s underdog comment, but no more time.

But Zuckerberg sort of addresses it, going on about why he has picked Microsoft as the favorite.

While he does not say it, it’s because Facebook is the overdog here and, as you know, every overdog needs an underdog.

Speaking of cartoon heroes, here is the opening of that classic television show:

Conclusions: It’s really cool! And also, it’s totally, definitely, going to kill someone!

Exactly who that will be is unclear: Maybe it will be Microsoft’s (MSFT) Bing! Maybe it will be Twitter, which is supposed to be “real time,” too! Or maybe it will be the dark arts of search-engine optimization!

Maybe! Or maybe it will be more like Apple’s (AAPL) Ping, which was declared a MySpace Music killer before Steve Jobs finished presenting it last week. Now that people have actually used Ping, though, it seems less homicidal and more benign/inept.

In any case, one thing Google Instant won’t do is make any significant impact on Google’s P&L. So says J.P. Morgan’s (JPM) Imran Khan, in a note he just published (almost instantly!). His big takeaways:

It won’t make Google (GOOG)  any more money, in the near-term:

We think this new product will have little to no impact on monetization rates. We see this product as an improvement to user functionality and think that its impact on advertisers will be limited. All of the ads typically associated with the suggested search appear as normal as the query is being entered. No changes have been made to serving or ranking. Although the constant updates to the results page may result in more ads served as a person types a query, this should only impact CTRs not the number of clicks as a user will not likely click on an ad until the appropriate results appear.

But it won’t cost Google anything, either:

Management expects the impact on costs to be in line with their existing search cost growth curve. Engineers adjusted the product to have as minimal an impact on servers and data centers as possible. Management expects the impact to be in line with the existing search cost growth curve.

But! If people like it (it really is cool), and that prompts them to search more, then that’s a good thing for Google, long-term.

OK! Back to the killing fields!

Steve Jobs held court this morning at Apple’s traditional September music event, unveiling goodies like a refreshed lineup of iPods; Ping, a new social network built into iTunes 10; and an updated Apple TV, with support for TV and movie rentals. Also announced was iOS 4.1, with a multiplayer Game Center, High Dynamic Range photos and HD video uploads over Wi-Fi.

The complete liveblog coverage:

9:34 am: John, Kara and Adam are here waiting for the doors to open at the Yerba Buena Center for the Arts for the start of the event.

9:54 am: Packed house today as these events often are. Seated in the theater, we’re treated to another variation on the Jobsian playlist: The Beatles, Clapton, etc.

9:58 am: A first “take your seats” warning. There’s a piano stage right, presumably for today’s musical guest. Long shot speculation in the audience that it may be Lady Gaga who was reportedly spotted on the Apple campus about 2 weeks ago.

10:00 am: Jobs takes the stage at 10 AM sharp to enthusiastic applause.

10:00 am: Job recognizes his “partner in crime” who’s in the audience today: Steve Wozniak.

10:01 am: And with that, we’re off. First a quick retail update. Jobs discusses Apple’s new stores in Paris and China, notes that the latter with its massive glass cylinder is a monument to glass engineering.

10:03 am: On to London. Another slick store in Covent Garden, Apple’s 300th. Jobs notes that Apple now has stores in 10 countries and will soon add an 11th — Spain. “We’re seeing 1 million visitors to our stores on some days, several days a month.”

10:04 am: “Our stores are bringing a lot of new users into the Mac family,” says Jobs, noting that about half of Mac purchases are made by first-time Mac buyers.

10:05 am: Moving on now to iOS devices. Apple’s shipped 120 million iOS devices since the first iPhone launched, says Jobs, adding that Apple is activating 230,000 iOS devices a day. “People throw out a lot of numbers about how many devices they’re activating per day,” he says. “We are doing 230,000 activations a day. …We think some of our friends are counting upgrades in their numbers … and we think we are ahead of everyone — if we were counting upgrades, our number would be WAY higher.”

10:06 am: “200 apps are downloaded from the App Store every second … we’ve got over 250,000 apps in the store and over 25,000 of them are iPad apps,” says Jobs. “Today we’re introducing iOS 4.1.”

Among 4.1′s features and updates: bug fixes to proximity, Bluetooth, etc. TV show rentals, High Dynamic Range Photos …

10:08 am: What’s an HDR photo? Job explains that it’s a camera that takes 3 photos in quick succession — one that’s normal, one that’s underexposed and one that overexposed and then melds them together into a better photo.

Some examples appear behind Jobs on screen and they do indeed seem much improved over the typical iPhone photo.

10:09 am: On to Game Center. “Game Center is all about multiplayer games,” says Jobs. It’s about playing games with your friends and if you don’t have any friends, it will find some for you to play with.”

10:11 am: Job’s invites Mike Capps, president of Epic Games to demonstrate a new Game Center game. The game’s called “Project Sword.” Like Street Fighter but with armor and swords. Very impressive in its detail. Game play includes demonstration of “boot-to-the-face” which goes over well with the audience.

10:14 am: Demoer is getting is ass kicked by his assistant. “This is what I get for bringing a designer with me to demo a game” Project Sword will be available for purchase in time for the holidays.

10:15 am: iOS 4.1 will be available for iPhone and iPod touch next week.

10:15 am: Now a sneak peak at iOS 4.2 for iPad. “This is all about bringing everything in iOS 4.1 to iPad,” says Jobs. “We’re also adding support for wireless printing.”

Printing is managed via a Print Center app.

10:16 am: Also coming in 4.2 Airplay — a new version of Airtunes that allows streaming of not just music to mobile devices, but pictures and videos as well.

10:17 am: Jobs demonstrates multi-tasking on the iPad. Plays some Jack Johnson tunes, checks e-mail, browses the Web. All pretty seamless.

10:18 am: Demonstrating Folders now. Works exactly as it does on iPhone. “We love these features and when can’t wait to get them on the iPad,” says Jobs. “So when is 4.2 coming out? November. And it will be free for all iOS devices.”

10:19 am: “And now I’d like to get on to today’s entree: the iPod,” says Jobs. “How many iPods have we sold? 275 million. … One of the secrets to the iPods success is that even though the iPod has a very high market share, we never rest on our laurels, we try to improve them for our users. And this time, we’ve gone all out. … It’s the biggest change in the iPod line ever.

10:21 am: Onscreen the evolution of the iPod shuffle from candybar to its latest buttonless iteration. People missed the buttons, says Jobs. So we’ve added them back. New shuffle looks alot like the second generation shuffle, but with a clickwheel. 15 hours of battery life. Comes in 5 different colors. 2GB for $49.

10:23 am: “Now let’s look at the iPod nano,” says Jobs. Again an overview of evolution of the device’s design.

“We wanted to make it smaller, and there’s only one way to make it smaller and that’s to remove the controls. And there’s only one way to control a device like that — touch. The iPod nano is now multitocuh based.

10:25 am: The new nano is 46 percent smaller and 42 percent lighter than its predecessors. 29 hour battery life. Supports Voice memos, Genius mixes, built-in FM radio. Clock.

10:26 am: A quick demo of music discovery. Jobs scrolls through the device’s library, pulls up an Ella Fitzgerald song. Navigation seems relatively easy despite the small screen size. Scrolling, swiping all work well. Screen also supports rotation via touch.

The new Nano comes in the same colors as the shuffle, plus two more — graphite and red. $149 for 8 GB, $179 for 16 GB.

10:30 am: Moving on to the iPod touch now, which Jobs refers to as the “iPhone without the phone.”

“The touch has become the most popular iPod,” says Jobs. “… Even more importantly, it’s become the #1 portable game player in the world. The touch outsells Sony and Nintendo’s portable offerings combined.”

1.5 billion games and entertainment downloads to the iPod touch alone.

10:32 am: Here’s the new iPod touch. Same form factor, but significantly thinner. It’s also been updated with Apple’s Retina Display and Apple’s A4 chip — the same one that powers the iPhone.Also on board a front-facing camera and FaceTime support for video chat. HD video recording. 40 hours of music playback.

10:33 am: The 8GB is available for $229, the 32 GB for 299 and the 64GB for $399. Pre-orders begin today.

10:36 am: And here’s the new ad campaign — iPod touch “All kinds of fun.”

“This is the strongest line-up of new iPods we’ve ever had, “says Jobs. “But as you know iPods are part of a great duet with iTunes … People have downloaded 11.7 billion songs from iTunes, 450 million TV episodes, 100 million movies, 35 million books. 160 million accounts world-wide.”

10:38 am: Jobs continues: Today we’re excited to introduce iTunes 10 … And we’re giving it a new logo. Since digital sales are outpacing those of analog music, we figured it’s about time we ditch the CD graphic.”

10:39 am: Focus of iTunes 10 is about discovery — “what are my friends listening to? what concerts are they going to?”

There’s really not a good way to do that, says Jobs. So we’re introducing Ping — a social network for music that’s built right into iTunes.

Bad news for MySpace …

10:41 am: You can sign-up to follow people on Ping just as you would on Twitter and it generates a custom top 10 chart of the music they’re listening to.

Interesting. Jobs has now mentioned Lady Gaga 5 or six times as he lists of examples of music and concert discovery. Maybe she’s not such a long-shot musical guest after all.

10:43 am: “Ping is for social music discovery and you can follow people and be followed,” says Jobs. There are privacy restrictions though — a “Circle of Friends” feature that limits sharing to a specific group of users.

“You can get as private or as public as you want and it’s simple to do it.”

10:44 am: Jobs begins his Ping demo. he scrolls through some tour photos that Jack Johnson’s been uploading. He posts a comment, scrolls lower and notices that a friend has posted something about a new song he likes. “I can purchase the song simply by clicking on it … and I can click through to see the entire album.”

Another mention of Lady Gaga, who — you guessed it — has a page on Ping and has evidently been uploading concert videos to it

10:48 am: A few more Ping pages — Yo-Yo Ma, Apple PR queen Katie Cotton, and Jobs himself.

“Now, Ping is not just available on your computer,” says Jobs. “It’s available on your iPhone and your iPod touch. … Ping: it’s a social network for music that’s built into iTunes and it’s available today.”

10:50 am: And here it is. One more thing …

10:50 am: “Actually, it’s one more “hobby”,” quips Jobs. The product: Apple TV, of course.

Jobs notes that since it’s introduction, the Apple TV hasn’t done as well as Apple had hoped. “We’ve sold a lot, but it’s never been a huge hit.” Neither has any competitive product, he adds.

“It turns out people don’t want a computer on their TV,” says Jobs. “They already have computers. They go to their TVs for entertainment — not for another computer. This is a hard one for people in the computer industry to understand, but it’s really easy for consumers to understand. They get it.”

“What do people really want,” asks Jobs. ” They want Hollywood moves and TV shows — not amateur hour. They want everyhting in HD. They want lower prices, they don’t want another computer and they don’t want to think about managing storage. They don’t don’t want to sync to their computers, they just want to watch TV … and they want this device to be silent, cool and small. … So we made something new for them.”

10:53 am: “We’ve created a new version of Apple TV. … It’s about a fourth of the size of the original.”

New Apple TV has HDMI, ethernet and a power cable — only.

10:54 am: Interesting. “We’ve gone to the rental model on this … there are no purchases on Apple TV. We’ve gone to a rental-only model and because of this, there’s no need for storage. You simply stream everything from your computer, there’s no syncing.”

10:55 am: Content?

First run HD movies for $4.99, day-and-date of DVD release.

HD TV show rentals: 99 cents and still commercial free.

10:56 am: “Now this is a big step that not all the studios wanted to take, so we’ve got Fox and ABC taking it with us now and we expect the other studios to follow,” says Jobs. “… And if you’re a Netflix subscriber, you can stream Netflix movies to Apple TV.”

10:57 am: Quick overview of the UI. Elegant. Interface now includes tomato ratings from Rotten Tomatoes. Easy previews. Viewing generally begins in a matter of seconds, says Jobs.

10:59 am: Also supported by Apple TV: Flickr, YouTube, Mobile Me.

“All these things and it all comes out of this little box,” says Jobs. “It’s amazing.”

11:00 am: The demo continues. Jobs browses Iron Man, looks over some customer reviews, Robert Downey Junior’s CV and then rents the movie. After a second or two the movie begins. Jobs scrubs ahead to a battle scene. Video quality is impressive.

11:02 am: Jobs edits his Favorite list. He notes that there’s a new episode of Glee, clicks to purchase and plays it. Moving on now to Internet content. First up Netflix. Jobs checks out his Instant Queue. Among the movies listed there: The Matrix and Lethal Weapon 4 (Lethal Weapon 4?!?)

11:04 am: Now a demonstration of the device’s slideshow feature. Standard stuff and about what you’d expect.

11:05 am: Jobs circles back to Airplay and explains that you can use it to stream movies from other devices to Apple TV.

11:06 am: He begins playing Pixar’s Up on and iPad, pushes a button and streams it to the Apple TV.

“Your going to be watching a movie on your iPad, come home, press a button and continue watching it on Apple TV.”

11:07 am: Looks like Apple TV is getting a new price as well. Wow. Apple’s dropped the price from $299 to $99. Pre-orders begin today. The device should ship in about 4 weeks.

11:08 am: Now a recap of today’s announcements: the new shuffle, a new nano, a new iPod touch with FaceTime — “The strongest line-up of iPods we’ve ever had, a new iTunes, with Ping a social network for music and finally a new Apple TV.”

11:10 am: “We started doing this music stuff for a really simple reason: we love music. And even though we;re a little more successful now than when we started that love hasn’t changed one bit….

Looks like today’s musical guest is not Lady Gaga, but ColdPlay’s Chris Martin.

11:12 am: Chris Martin takes the stage … “This probably the toughest closing gig I’ve ever had. I don’t have any new products to announce … anyway, I’ll just play one song and then another and another until you feel like lunch.”

11:21 am: After a few songs, Martin pauses: “I’m not sure what to do … is Steve around to tell me what to do next …We’re moving on now to Coldplay 2.6 … this one has a lot a features, multiple chords that our competitors aren’t yet aware of …. it’s in the chord of ‘i minor’”

11:23 am: My colleague Peter Kafka weighs in on Ping: “Well, there’s Facebook’s music service. It’s run by Steve Jobs.”

11:24 am: A few more media tidbits from Peter via Twitter

– Fox statement sets limit on $0.99 iTunes rental trial “working with them over the next several months to explore this innovative offering.””

– Disney statement on 99 rentals much less reserved than Fox. No timeline or “experiment” mentioned

11:25 am: Looks like that’s it from Martin. He leaves the stage to a standing ovation and Jobs returns.

“Thank you for coming. I hope you’re as excited about this stuff as we are … and we’ll see you soon.”

And that’s it. The event ends.

The Google and Verizon plan that the New York Times reported on last week is out. And, as Google and Verizon have said, it’s not what the New York Times had reported: A pay-to-play arrangement where Google gets the ability to speed its stuff across the Web by paying a premium.

Instead, it’s a three-tiered policy proposal–and absolutely not a “business arrangement,” the two sides insist–that will both mollify “network neutrality” advocates and worry them.

You can read the full thing here, and see Google and Verizon’s explanation of the policy/plan below. The fast version:

• The Web stays open, everyone gets treated equally–everyone with “legal content,” that is–and Google won’t be paying to move its stuff faster than the competition. It’s what everyone who says they care about network neutrality demands.
• But! Verizon and/or others telcos/cable guys/ISPs want the right to build and/or use “new services.” And those could have different rules.
• And! The open Web policies described above are for “wireline” services–i.e., pipes and cables into your home or office. But wireless broadband is a different animal. And it would have different rules, too.

The second and third points, of course, are where things will get sticky. The Google/Verizon statement is intentionally vague about what these new services would be and who would build them and what would be on them. But in the conference call to explain the statement, reporters immediately began referring to the “new services” as a “private Internet,” and I bet that name will stick.

Google CEO Eric Schmidt, for his part, insists that his company wants no part of the “private Internet” or whatever it is that may or not be built. Google “likes the public Internet,” he said, and later upgraded his affection to “love.” And asked repeatedly whether Google would use any of the new services, he repeatedly said no.

Which makes it appear as if Google has made the following trade: Give us unfettered access to whatever we want on the public Web, and we won’t squawk about secondary services you build on your “private Internet.” Which we’re not calling the “private Internet” and we’re not going to use anyway. And when it comes to mobile, well, that’s a different discussion.

There was very little discussion in the press Q&A about wireless, which is odd, given the amount of time my colleagues (and our readers) spend obsessing about the iPhone and Android and the BlackBerry, etc., etc. But surely we’ll hear more soon enough.

Meantime, what about the thing-that-doesn’t-exist-and-is-not-a-private-Internet? What are you supposed to do with it anyway? Especially, since, according to Schmidt, you won’t be using it for Google search or to watch YouTube clips?

The policy statement offers some suggestions: “Health care monitoring, the smart grid, advanced educational services, or new entertainment and gaming options.” Okay, but aren’t all of those things best used on the Web–the “open Web,” that is–anyway?

And here Seidenberg is quite vague. On two separate occasions, he suggested that the “private Internet” might be a good place to stream 3-D video. But surely he’s thinking about uses beyond “Pirhana 3D.”

But for better or worse, all of this is going to get thoroughly vetted in Washington, so I’m sure we’ll hear more about in the future. For now, enjoy your open Internet!

Earlier:

Google and Verizon are about to conduct a joint press conference, presumably to explain what the two companies are and aren’t doing with regard to network neutrality.

Last week, the New York Times reported that the two companies were working to push forward legislation that would allow Internet service providers to prioritize certain traffic on their wireless networks. Verizon and Google, in unusually loud proclamations, said the Times got the story wrong; the Times said it was sticking by its story.

Verizon and Google both plan to publish statements on their public policy blogs at 1:25 pm Eastern, and the call with Google CEO Eric Schmidt and Verizon CEO Ivan Seidenberg is scheduled for 1:30. I’ll cover it live here:

Live Blog

1:28 pm: Waiting on the promised policy blog posts. Nothing yet. *Unless Google and Verizon are conspiring to keep my computer from getting the information!*

Verizon blog now sputtering, gurgling. Perhaps something’s about to emerge…

Well, if you’re bored, here’s a Tom Petty video.

1:36 pm: No blog statements, but call is starting anyway.

Here’s Schmidt, introducing Seidenberg and their respective public policy chiefs.

Over past years, to Schmidt’s surprise, VZ and GOOG have found “more and more” that they agree w/r/t public policy.

Google needs investment and infrastructure that VZ and telcos provide; he hopes they need Google and others software..

So public policy statement coming.

But first more about Google: Open internet very important to us. Google has has enough money to get whatever it needs on the Web, but next generation of companies will need access to open Internet.

Schmidt: Lots of chatter and reporting about this since last Thursday, “Almost all of which has been completely wrong”, even though we love “sophsticated critcism.” So please read what we have to say before you talk or type.

Here’s the link. Schmidt summarizing but I’m linking. So you’ll have to read for yourself…

Seidenberg finishing up list of talking/policy points that Schmidt started. But trying to paraphrase what he’s saying nearly impossible, since it is laden with legalese and is oblique (intentionally so, I assume). So going to hang tight for a minute.

Seidenberg. “Why now, why Google”? “This debate has been somewhat hijacked by a lot of discussion and issues that are not really reflective of what the company is doing”…
So….”we agree with Google” that proposal is to “follow a consumer-driven orientation”. Ugh. Such non-language.

Q&A

Q on principle six. What does that mean? Would it mean that Google, using Android phone, on a non-public Internet, could buy up capacity to offer YouTube on Fios at a better price or speed?

Seidenberg: I think the answer is “no”. But let’s explain this. “There’s no paid priortization that would come from Google over the Internet, period.” BUT. If google or someone wants to bundle a new service with new features and that was transparent to everybody, that would be permitted.

Schmidt: Right!

Q: But you could have YouTube channel on Fios, right?

Seidenberg: Sure.

Schmidt: We wouldn’t do that. “Google likes the public internet”

Q: Richard Waters from the FT seems to be underwater.

But Seidenberg thinks he can hear him. We couldn’t degrade capacity of public internet in order to build up private capacity. We’ll start out by serving public internt. But if we have additional capacity we’ll build out both.

Q: What’s your incentive for building out public internet.

Seidenberg: “So many ways” to monetize growth.

Schmidt: Verzion and others have incentive to make pubic internet more useful, “simply because it’s what their customers want”. And there’s enough excess supply to build both. And we’ll make sure that they follow up on these promises.

Q: And to be clear – Google, including YouTube, will always be on public internet?

Schmidt: Yes.

Q: Someone from Reuters, speaking very quietly.

Schmidt: “There is no business arrangement.” btw us and Verizon. Want to be very clear that those reports (in the Times) were “false, misleading and incorrect”.

Seidenberg: “There is no business arrangement”

Q: Talks with FCC?

Both Schmidt and Seidenberg. Yeah, we’ve talked to them.

Seidenberg: We’re doing this call now to clear up erroneous reports.

Missed a question. Apologies.

Q: Please talk more about the alternative non-public internet thing you’re talking about is. What is it? And why not run it w/same rules as public internet. And Eric, are you really sure you won’t use this thing?

Schmidt: Nope. We won’t’. “We love the public internet”

Seidenberg: We’re not saying there’s an alternative internet or that we’ll build it. But if someday someone builds it, we’d like to be able to use it.

Q: OK, so what would an entertainment service on this non-public Internet be like?

Seidenberg. I’ll give you an answer “and then you’ll trivialize it”. But! Let’s say the Metropolitan Opera wants to do 3-d broadcast. Maybe they don’t want to use the public internet for that.

Q: I know there’s not a business arrangement. But why do it behind closed door?

Schmidt “This is not a deal. This is a joint policy announcement”. It’s in everbody’s interest to follow the policy, and that’s what we’ll do.

Seidenberg: “Ditto!”. And of course, we’ve talked to others as well. Carriers, folks in government, etc.

Q: All of these services (like video) are moving into IP networks, which is the Internet. So what wouldn’t be in included in the public internet here?

Seidenberg: Do you think 3-d should go over the internet? Then recites talking points from memo again. “It’s not that difficult” to understand.

Schmidt thanks everyone for getting on call (No problem!). And thanks for Verizon management for their help on this, because it’s a really big deal for everyone in the United States.

Call ends.

[Image credit: James Thompson]

Here are Yahoo’s slides from its second-quarter earnings announcement today for you to peruse and enjoy.

Pretend you are a Wall Street analyst–you’re probably smarter–and sharpen your pencils!

A cheat sheet to start: Net income and margins were up at the Silicon Valley Internet giant, while revenue was meh. Display advertising growth was up, while search ad revenue was down.

(And here is a live blog of the management conference call about the results.)

Courtesy of Yahoo (YHOO):

YHOO_Q210EarningsPresentationFinal

Yahoo said it had earned 15 cents a share in net income–a rise of 53 percent compared to last year-in its second-quarters earnings today, after the markets closed, on an only slight rise in revenue.

Wall Street had expected the Internet giant to earn 14 cents a share in the three months.

But gross revenue at the Silicon Valley Internet giant rose only two percent, And minus costs associated with traffic acquisition–called non-GAAP revenue–revenue was only $1.128 billion compared to $1.136 billion a year ago.

Yahoo (YHOO) CEO Carol Bartz has been touting improved margins and stronger operating income over longer-term worries about lack of innovative vision.

But the lack of revenue growth is the real issue.

Most encouraging: Display advertising, Yahoo’s core business, grew 19 percent from a year ago.

But revenue from owned-and-operated search declined yet again, although less dramatically, down eight percent year-over-year.

Page views were also down four percent, according to Yahoo, while employee numbers rose eight percent.

Here’s the full press release (and click here to see Yahoo’s slides on the earnings and here to read the liveblog of the management call on the results):

YHOO_Q210PressRelease_Final

After BoomTown complained at December’s search summit held by Bing about the lack of the finest pastry known to man–namely, donuts!–minions were dispatched by top Microsoft geek general Satya Nadella to fix the dire situation.

And, happily, at Search Summit 2010, there on the lovely snack table were a small pile of them–which looked like Krispy Kreme to me.

There were lacking the key sprinkles feature, but carb crisis averted!

Speaking of features, top Bing execs were on hand in San Francisco to show off all the work they have been doing over the last year in the software giant’s efforts to topple mean old Google (GOOG) via an innovative offering.

Even the plain-speaking Nadella acknowledged in his opening it was still a bit of a children’s crusade, since Bing had barely broken into double digits in search market share and Google was hovering around 70 percent.

But the most recent report released this week by comScore (SCOR) showed continued promise, so Microsoft (MSFT) presses on its long and pricey road!

Here’s my liveblog of this morning’s event at the software giant’s San Francisco office:

10 am PT: Nadella opened with the donuts news. Nice move.

Then, it was onto some promising stats of growth, which have surely been promising, despite the high price tag (Microsoft’s online division lost $700 million in the last quarter, to give you an idea of the sticker shock).

Still, as search exec Brian MacDonald said, as he was presenting all the many new features–such as cards–added over the last year: “We’re in it to win it.”

At the end of his presentation, in a slide title “Future,” he said reporters could not take pictures or video. Sure, hop us up on sugar and then tell us something interesting and bar us from taking snaps!

But MacDonald clicked through the images so fast, it was hard to tell what Bing would be up to. Essentially, it looks like a more blocky, image-heavy design, with more differing fonts and contextual info.

10:40 am PT: A smart search geek Harry Shum was then on with a lecture about search intent and all kinds of insider tweakery that made me confused, since I do not understand terms such as “page-level dialog.” There is also apparently “session-level dialog.”

Harry knows what it all means, which is pretty much all that counts.

My take: It has to do with some sort of digital conversation Bing search dudes are having with the users that users have no idea is actually going on.

Simply put: They’re watching you.

11 am PT: Next search guy talked about search intent and such.

That means adding features such as a link to search history or instant weather on the opening page. It’s the little touches that count.

In fact, they do, as Bing tries to differentiate itself from what Google offers, via a series of neat tricks and clever design.

That includes, for example, easy access to lyrics and song classifiers, when searching in music.

Lady Gaga’s “Poker Face” was used as an example, since Lady Gaga seems to be the go-to gal on seeming cool these days.

(But is it time to check Bing search trends to see if she is peaked?)

11:19 am: Next, top Online Services Division exec Erik Jorgensen came on to discuss mobile and mapping. He compared himself with “Edward Scissorhands” when talking about how hard it is to have a good experience on a small device.

“Type less, do more,” is the internal mantra at Bing, he said. Coincidentally, my mantra is type more, do less.

Jorgensen showed off Bing mobile stats: 23 million users, 160 percent growth and four million downloads of its iPhone app. Yes, it has come to this–Microsoft using Apple (AAPL) to tout its success.

Then it was onto mapping, which is a pretty good arena for Bing. Stats: 41 percent growth in U.S. unique users, 43 percent rise in searches using enhanced maps, a huge boost in map apps.

11:29 am: Bing Maps guru Blaise Aguera y Arcas–who has the single most sexy name in all of geekdom–said the focus is now on social location.

As in Foursquare!

In fact, he showed off a map in which Foursquare check-ins pour in and pop up in a bit of a freaky way, as in: You can stalk in real-time.

Then it was onto cool mapping eye-candy, which I always fall for since the whole zoom-in-zoom-out thing is mesmerizing. Aguera y Arcas showed off clickable geographic names and embedded maps within maps from, in this case, a zoo or a museum.

11:50 am: Q&A Time!

The first question is about gaming. It’s hot said Nadella, and Bing wants to provide discovery and search more than games themselves.

I asked a question about the status of the Yahoo (YHOO) search partnership deal, which is in process. It is a very complex process, in fact.

And, though they were supposed to be in tandem, Nadella said that algorithm would move faster than advertising technology handover.

“If there were a drop of of advertisers [due to the new deal], that would be problematic,” he said.

Yes, which segued into the next obvious topic: When would Bing make some dough?

Thus. I asked about the high costs of competing in the search space, which Nadella said would continue, including distribution deals and in the aggressive marketing of Bing.

“For sure, we had to ante up,” he said. “But the product has to be able to stand on its own…ultimately, the product has to carry the day.”

More questions about distribution, social search, churn, product differentiation and whether Bing is growing from a more passive user to building a “fan base.”

BoomTown brainstorm: If they handed out delicious donuts with each search, I’d leave Google in a New York minute.

But, like a skunk at a garden party, I asked another question about when Bing is going to break even.

Nadella was too smart to answer this digital hot potato.

“It’s a big market where money can we made, and we are making progress,” he said, saying I should ask his bosses about specifics.

I shall!

In this vein, someone then asked a question about whether Bing would ever become a verb as Google has become.

Shum joked that in the future six letters would be too many for people to say, so things were looking up for four-letter search brands!

More questions included whether Google was tweaked by Bing yet (yep!), and whether Bing should try to win in an international market to show some muscle (U.S. is still top focus).

Finally, it was “time to deploy the cream puffs,” said a Microsoft PR honcho.

Long past time, I’d say.

What will he uncrate this year–aside from a new iPhone? New Mac Pros? New LED Cinema displays? Safari 5 with a new Bing search option? Mac OS 10.7? The next iteration of Apple TV? Join us here later this morning and find out. Our live coverage begins at 10 am PT.

Liveblog

9:38 am: San Francisco’s Moscone Center this morning is as packed as I’ve ever seen it. The attendee line for Apple CEO Steve Jobs’s keynote address began forming early this morning, and by the time I arrived at 8 am, it was already stretching from Moscone well toward the Fifth and Mission garage. No surprise. I’m told this is one of the biggest WWDCs ever, an event that sold out in record time.

10:05 am: Off to a late start because of a connectivity issue here. Jobs takes the stage to a standing ovation. “It’s great to be here.” From the audience: “We love you Steve!”

“We’ve got a packed conference for you this week,” says Jobs. We sold out in eight days.

A few updates to start. First: the iPad. We’ve sold over two million iPads…we’re selling one every three seconds…we’re now selling it in 10 countries.

10:05 am: Now a quick video reel of recent iPad launches abroad. Lots of giddy faces.

10:06 am: We’re in 10 countries today, we’re going to be in 19 by July…we’re making iPads as fast as we can.

Jobs notes that there are now 8,500 native iPad apps and they’ve been downloaded over 35 million times. That’s about 17 apps per iPad and that’s a great number, says Jobs. We’re just thrilled.

10:07 am: A quick showcase of some native iPad apps: eBay (EBAY), WebMD, Iron Man, the FT, Elements, a periodic table app by Wolfram Alpha. The Wolfram representative says his company earned more from the iPad app during first-day sales then it earned from five years of Google ads on PeriodicTable.com

10:08 am: Moving on to iBooks. Users have so far downloaded five million iBooks. That’s 2.5 books per iPad. Publishers tell Apple that as a share of total e-book sales, iBooks now account for 20 percent, and the figure is rising.

Today, we’ll see some enhancements to iBooks. Among them, the ability to make notes, a new control to bookmark the page and that shows bookmarks in the index of the books themselves, the ability to review and read PDFs [applause]. “What we’ve done,” says Jobs, “is to give PDFs a whole new bookshelf for PDFs in the iBooks apps….Those enhancements will be out just a little bit later this month.”

10:11 am: “Next, I’d like to talk a bit about the App Store,” says Jobs. “We support two platforms with the App Store. The first is HTML5, a fully open uncontrolled platform…anyone can write HTML5 apps and have them on our devices….The other platform is the App Store….Now you’ve read a lot about our process for approving apps. We get about 15,000 new apps a week, and they come in in about 30 different languages. Guess what? Ninety-five percent of them are approved within seven days. What about the five percent that aren’t? What are the reasons for that? One: The app doesn’t function as advertised by the developer. Two: The use of private APIs–we don’t want our apps to break. Three:The app crashes….So I think if you were in our shoes, you’d be rejecting apps for the same reasons.”

10:14 am: Jobs talks for a moment about eBay’s app. He refers to eBay CEO John Donahoe’s statement at D8 last week noting that the company’s iPhone app was responsible for $600 million in volume last year.

10:16 am: Jobs invites Netflix CEO Reed Hastings to the stage to talk about the Netflix iPad app. Hastings announces that Netflix (NFLX) will soon debut a new application for the iPhone.

10:17 am: The Netflix iPhone app will debut later this summer. For free.

10:18 am: And so begins a parade of app developers. Next up: Zynga. CEO Mark Pincus takes the stage to announce Farmville for the iPhone. Pincus chats a bit about how successful Zynga’s games have been and how active its users are. Now a quick demo of the game. Looks like the app is cross-platform. The demoer makes a point of noting that the farm she’s tending on her iPhone is the same as the one she has on Facebook: “Say goodbye to withering crops; we now have push notifications.”

10:21 am: Pincus: “With Farmville on the iPhone you can now farm anywhere and any time you want.” Evidently “tractoring” just got a whole lot better. [Not a Farmville player, so I'm not really sure why that's exciting.]

10:22 am: Farmville will debut on the iPhone by the end of June, says Pincus.

10:23 am: Today’s third demo will be from Activision (ATVI): Guitar Hero. The company has developed a new version of the game for the iPhone and iPad. It features rock-star customization, classic rock as well as newer indie stuff, gameplay that riffs off classic Guitar Hero. Activision’s game designers have optimized the new version for iPhone and touch play. Looks like it allows for whammy, pull-ons, pull-offs and “Star Power” as well.

Uh-oh. Demo guy gives us a bit of air guitar.

10:26 am: Guitar Hero is available now in the App Store. Price: $2.99.

10:26 am: Jobs returns to the stage. “Just last week we crossed five billion downloads….Now here’s my favorite stat…how much have we paid to developers to date: $1 billion. This is one of the greatest things we get to do, so let’s go do it again.”

10:28 am: Moving on now to the iPhone. “There have been a lot of statistics floating around. Some are okay, some are questionable. Here are some we like: A new survey from Nielsen shows RIM (RIMM) with 35 percent market share, iPhone with 28 percent. In Q1 2010, the iPhone had over three times the market share of Android.”

Another stat: The iPhone has a 58.2 percent mobile browsing share. “These stats should help put things in perspective for you.”

10:30 am: Now a bit of iPhone history. Jobs runs down a list of iPhone updates over the years. “Today, we’re going to give the biggest update since the iPhone launched….Today, we’re launching iPhone 4.”

10:31 am: The iPhone 4 has a number of new features. Jobs will cover eight of them.

“The first feature: An all-new design. Stop me if you’ve already seen this, ” he jokes. “This is without a doubt the most beautiful, precise thing we’ve ever made….The precision with which this is made is unheard of….It’s like an old Leica camera…nothing like it today….It’s just 9.3 millimeters thick. That’s 24 percent thinner than the 3GS….It’s the thinnest smartphone on the planet.”

10:33 am: There is, indeed, a front-facing camera. Camera with LED flash on the back. SIM card tray. A second microphone.

“Now, because there have been a few photos of this around, people have asked ‘what’s this?’ What are these lines on the new iPhone….Well, there are three lines, not one….Turns out, this is part of the device’s engineering….The stainless steel bands around the device are actually integrated antennas….This has never been done before.”

10:35 am: A quick feature review: Thinnest phone ever, stainless steel for strength, optical quality glass for scratch resistance, built-in antennas.

10:36 am: The second big feature: Retina Display. What’s Retina Display? We’ve dramatically increased pixel density….We’re putting four times as many pixels in any given space….This give us far more precision….This will give us really, really sharp text when we zoom in….We’re using 326 pixels per inch….No one has ever done this before….Turns out that 300 pixels is the limit of the human retina….So once you hit that number, images and text begin looking extraordinary.”

10:38 am: Jobs pulls up two frames showing the difference in appearance between text viewed with Retina Display and text without.

“And this isn’t just for text,” says Jobs. “It’s for pictures and video as well.”

10:39 am: Moving on to a demo. Jobs pulls out an iPhone 3GS and the new iPhone 4. Their respective displays appear onscreen behind him and the difference between the two is startling.

Oops–bit of a network problem. “Our networks here are always unpredictable,” says Jobs. “You know you could help me out here if you’re on Wi-Fi by getting off for a moment.”

Uh-oh. “Could not activate cellular network.”

“Yes, I know that,” quips Jobs. “Oh jeeze…well, looks like I may not be able to show you what I wanted to.”

Jobs moves on, shows off some pictures. Returns to the browser and tries again to bring up the Web page he had hoped to show. Ultimately, he gives up.

10:44 am: Details of display for the iPhone 4: 3.5 inches, 960×640, 326 pixels per inch, 800-to-1 contrast ratio, IPS technology for wider viewing angle and superb color. The iPhone display has 78 percent of the pixels we’ve got in the iPad.

10:45 am: Jobs says existing apps will look even better on the new iPhone. “But if developers do a little bit of work and put improved images into their apps, they’ll look even better. And we suggest you do that….This is going to set the standard in displays for years to come and we don’t think anyone else is close to it.”

10:47 am: Next innovation: The iPhone 4 is powered by Apple’s A4 chip. This is, of course, the same chip that powers the iPad. In other words, this new iPhone is going to scream.

10:48 am: Jobs pulls up a diagram of the innards of the iPhone 4. He notes that Apple was able to build in a larger, improved battery. Seven hours of 3G talk, 10 hours of video, 40 hours of music. 300 hours of standby [I think].

More on the A4: Up to 32 GB of storage. Quad-band HSDPA/HSUPA, 7.2 Mbps down.

10:49 am: A fourth innovation: “Remember when we added the accelerometer and that added up a whole new vista of gaming? Well, we’re taking that even farther and adding a three-axis gyro.”

It supports pitch, roll and yaw, and it’s tied to the compass and accelerometer. New CoreMotion APIs will allow some big leaps in gaming.

“Let me show you a demo. And since this demo doesn’t require the network, we should be okay.”

10:51 am: Jobs shows off onscreen movement via an iPhone Jenga game. First, without the gyroscope and then with it. When it’s activated, it enables 3-D rotation. Very impressive. Jobs plays the game for a few moments. “I did practice this a little bit,” he says, before toppling the tower.

“The gyro joins the four other sensors we have in every phone. I can’t wait to see what you all do with it.”

10:53 am: On to the fifth update: A whole new camera system.

“Everyone likes to talk about megapixels, but what we like to ask is ‘how do we take better pictures?’…What we’ve done is go from a three-megapixel camera to a five-megapixel camera, and we’ve added a backside illuminated sensor (something found in larger cameras)….These allow us to capture more photons per pixel….We’ve also added an LED flash.”

Jobs pulls up some unretouched photos taken with an iPhone 4 and they’re quite nice. Low-light photos are particularly impressive.

10:56 am: Whoa: The camera also records HD video. Full 720P at 30 frames per second.

10:56 am: The camera supports tap-to-focus video, built-in video editing, and one-click sharing via MMS, YouTube, etc.

“But we’re going even further than that,” says Jobs. “We’ve writing iMovie for iPhone.”

10:58 am: Apple’s Randy Ubillos takes the stage to demo the software. The application seems similar to the desktop version–uses projects, etc. It supports iDirect recording into its timeline. You can also import video from the camera app. Drag-and-pinch editing supported, as well as things like Ken Burns effects and themed transitions.

11:00 am: Ubillos demos titling in a movie and notes that the device uses geolocation to actually identify the locale at which a film was recorded. Five iMovie themes are included in app. Three movie export sizes up to 720P HD. And now a video reel of a short HD movie shot and edited entirely on iPhone 4. Pretty slick. Flip camera folks are probably chugging Mylanta right about now.

Jobs back on stage: “You’ll be able to buy iMovie for $4.99 from our App Store…if we approve it.”

Jobs circles back to the earlier demo that went wrong. He notes that some 500-plus Wi-Fi base stations in the room compromised the demo. “This here is a testament to how far we’ve come…some 500 base stations in the room.”

11:05 am: Bloggers are being asked to turn off their Wi-Fi and put their devices down in order for the demo to go forward. “I think bloggers have a right to blog, but if you want to see the demos, we’re not going to be able to do it,” Jobs says.”Unless someone has a better suggestion.” In reply, a number of audience members shout “Verizon!” Jobs: “We’re actually on Wi-Fi here.”

11:05 am: Moving on now to the sixth of eight new features Jobs will demo: IPhone OS4. Apple is renaming the OS, since it now runs on devices other than the iPhone. The new name is “iOS.”

The new version, iOS 4, has some 1500 new developer APIs, says Jobs. And there are over 100 new user features as well. The biggest is multitasking. “People say we weren’t first with that, and they’re right…but we wanted to do it right.”

Jobs notes Google (GOOG) co-founder Larry Page’s recent comment about multitasking running down mobile device batteries. “You know what? He’s right. And that’s why we took our time with it. We wanted to get it right.”

11:09 am: Now a demo of multitasking. Jobs opens up Pandora, selects a song to play, checks his email, fires up a browser and it finally connects to the network. He moves back to mail, swipes to bring up Pandora’s controls, turns Pandora off, begins reviewing email. There’s threading, and message-deletion has been simplified.

11:11 am: Moving on to folders and folder creation. Again, very simple. All drag and drop. Folders can be added to the dock. Jobs quickly creates a folder for all his sports apps.

Overview of iOS4: Multitasking, folders, Retina Display integration, unified mail inbox and threading, enhanced camera and photo apps, deeper enterprise support–tons of new features everywhere.

11:13 am: A few points about enterprise support–better data protection, mobile device management, SSL, VPN support, wireless app distribution.

11:13 am: Apple has added a new search engine option to iPhone–Bing. Google will stay the default. “We’re giving you the choice and you can decide now. Microsoft’s done a great job with Bing.”

11:14 am: Apple will provide developers with a golden master candidate of iOS4 today. Consumer release will follow “soon.”

Jobs: “We’re about to hit another milestone. This month we will sell our 100 millionth iOS device….There is definitely a market for your applications. No one else comes close to this.”

11:15 am: Jobs moves on, announcing that Apple is bringing iBooks to the iPhone and iPod touch as well. Same basic application, PDF support, iBook Store, etc.

Jobs: So now we’ve got iBooks on three different devices, so what can we do with them? You can download the same book to all your devices at no extra charge. You only have to buy it once…and iBooks will automatically, wirelessly at no extra charge, synch your place, your bookmarks and notes across all your devices.

11:18 am: Now a demo of iBooks on the iPhone. Jobs pulls up “Winnie the Pooh” on the video screen behind him. Same idea as iBooks for iPad. He writes himself a note, bookmarks a page. Then he returns to the book’s index page and points out that the bookmark and note now appear there. He moves on, shows off PDF support.

11:20 am: Jobs–iBooks is joining iTunes and the App Store as the third store on the iPhone. We have over 150 million accounts with credit card information. We believe this is the most in the industry.

11:21 am: Now: iAds. “Why are we doing iAds? To help our developers create low-cost ads for advertisers. With iAds, we’re trying to add emotion and interactivity to mobile ads…iAds keep you in the app, they don’t hijack users out of it.” By making sure that users know what an iAd is, they’ll know they won’t be hijacked out of an app. IAds are built right into iOS4. You don’t have to write an app to put it into your app. Apple sells and hosts the ads so all you have to do is put them in, and you’ll make money.

11:23 am: Apple has been selling iAds for just eight weeks but has already accumulated quite a list of customers: GE (GE), Chanel, AT&T (T), Liberty Mutual, State Farm, Campbell (CPB), Sears (SHLD), JC Penney (JCP), Target (TGT), Best Buy (BBY), DirectTV, TBS and…Disney (DIS) [of course].

11:25 am: Jobs pulls up an in-process Nissan ad for the company’s new electric car. “Nissan was a little hesitant to show you this…but I convinced them [laughter].”

Nissan’s iAd is essentially a 15-second video that appears along with some interactive elements. The app allows viewers to register to see additional materials. It also includes an MPG comparison chart. “This is a pretty compelling way for Nissan to get their point across….What’s more, Nissan is giving away a car through the ad.” Jobs enters to win a red Nissan Leaf.

11:29 am: Jobs–I think a lot of people are going to try to win the car. It’s a great idea…so iAds. We’re going to turn it on on July 1….So how well have we done selling iAds so far? Well, we’re pretty new at this, but I think we’re doing pretty well….We’ve sold about $60 million so far…and we’ve been selling them for just eight weeks….So we think we’re off to a great start.

Jobs again stresses that the point that iAds is to make money for developers.

11:31 am: His “eight things” overview finished, Jobs checks in with the audience? What do you think so far? [Applause]. Well, there is one more thing.

“In 2007 when we launched the iPhone, it was my privilege to make the first phone call on it to Jony Ive…and I’d like to do the same on this occasion.”

Jobs video-calls Jonathan Ive.

11:33 am: Video looks clear. Jobs again appeals to the audience to turn off Wi-Fi to prevent video freezes.

Jobs: You know this amazing. I grew up with “The Jetsons” and “Star Trek,” dreaming about stuff like this, and here it is.

Ive: I grew up the same way. And it’s real now isn’t it?

Jobs: It is real, especially if people turn their Wi-Fi off.

11:34 am: Big round of applause for the feature, which Apple is calling FaceTime video calling.

FaceTime is iPhone4-to-iPhone4 and it’s Wi-Fi-only. No set-up required.

You can use front or rear camera and you can switch between the two to show the person you’re talking to what you’re seeing. Supports portrait and landscape.

“FaceTime’s going to be Wi-Fi-only in 2010….We’ve got to work with carrier partners a little….And Apple will ship tens of millions of FaceTime devices this year, so there will be a lot of people to call.”

11:37 am: Now a FaceTime ad. Louis Armstrong soundtrack. “When you’re smiling…” Typical Apple fare. Grandparents calling grandkids. Pregnant mother showing husband live images of an ultrasound. Two people signing over the app. A cameo by Matt Damon. Big round of applause. Audience found the signing particularly moving.

Jobs: This is one of those moments that reminds us why we do what we do.

11:39 am: Jobs notes that FaceTime is based on a bunch of open standards–a bunch of alphabet-soup acronyms. “We’re going to make FaceTime an open standard…so that’s iPhone 4 and we think it’s the biggest leap forward we’ve taken so far.”

11:40 am: iPhone 4 will ship in two colors, black or white. $199 for 16GB, $299 for 32GB. AT&T is offering “an incredibly generous upgrade offer.” If your contract expires any time this calendar year you can agree to a new two-year contract and get those $199/$299 prices.

11:42 am: New iPhone lineup will go on-sale June 24. Preorders start a week from tomorrow. On June 24, iPhone 4 will launch in four countries. In July it will ship in 18 more.

11:43 am: In August, Apple will add 24 more countries. By September, the company will be shipping iPhone 4 in 88 countries.

11:43 am: Apple has designed some new accessories for the device: A new dock, some colorful new iPhone cases.

Upgrades for iOS will be offered for 3GS, 3G and iPod touch, though not all features will be supported. Upgrades will be free and available on June 21

11:45 am: Brief video overview of iPhone 4 with various Apple execs talking up the new device. “This is the biggest leap forward since the original iPhone….We’re bringing video chat to the world…and it’s going to change the way we communicate forever.”

11:46 am: Video reel stresses a number of points that Jobs has made so far: Retinal Display is the best mobile display to date…apps show more detail than you’ve seen on any device before…you can now switch between multiple applications and everything is as you’ve left it…intelligent folder-naming…simplified mail with threading…an LED flash for low-light pictures…HD video capture and video-editing with iMovie…iPhone 4 is simplicity, but behind it is outrageous technology…40 percent more talk time with new battery.

11:50 am: More from the video reel: “We developed an entirely new stainless-steel frame that functions as an antenna and the device’s primary structure…new high-impact glass used on front and back…even if FaceTime were the only feature we were delivering this would be an amazing device…with everything else, it’s going to change everything all over again.”

11:51 am: Jobs returns to the stage, pulls up a slide of a road sign showing the intersection of technology and liberal arts. He notes that this is what distinguishes Apple. “It’s the hardware and software coming together….It’s not just a new camera, it’s a new camera system and video-editing software….It’s the complete solution so that all of us don’t have to become system integrators.”

Jobs thanks the teams that have spent the past year developing the device. First name: Former IBMer Mark Papermaster. Applause too loud for me to catch second name. Other folks recognized: Bob Mansfield, Scott Forestall, Tim Cook.

11:54 am: Jobs wraps it up with a “This is our new baby. We hope you love it as much as we do.”

And that’s it. The keynote’s over.

McKean will demo Smartwords, an open standard for sharing information about words. She has partnered with several major media organizations in hopes that Smartwords can expand and enhance users’ experiences with e?books, digital content and e?readers.

Below, video of the demo, followed by the liveblog.

Liveblog

Wordnik is up to tell us a little more about Smartwords.

11:45 am: Walt takes the stage and introduces Erin McKean of Wordnik.

11:47 am: McKean wanted to be a lexicographer, thanks to an article in The Wall Street Journal, she says.

She says that words need to be converted from “dumb strings” to “smart things.”

She brings out an iPad and opens an app that automatically generates a glossary for Scientific American.

11:49 am: She says journalists make very user-friendly definitions of words–much better than dictionaries. She opens an e-reader app and shows a pop-up that gives an explanation of the word as a concept, in context. She says it is based in HTML5.

11:51 am: Inside the pop-up, there are options to buy things that are related to words that are explained.

Options are there to purchase books on searched concepts or subscribe to newspapers that are partners to supply definitions.

Walt asks if she will take a cut of the book sales or subscription fees. McKean says she’s not the monetization person.

11:54 am: McKean now shows a study tool that forces kids to learn new words in books they want to read. The page won’t turn until you answer a question about an SAT-level word on the page.

11:55 am: McKean thanks Walt and Kara and bounds off stage. Demo over.

A note about our coverage: This liveblog is not an official transcript of the conversation that occurred onstage. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as possible. It is not intended as a transcript and should not be interpreted as one.

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]]> http://allthingsd.com/20100603/wordnik-demo/feed/ 0 http://allthingsd.com/20100603/tim-armstrong-session/ http://allthingsd.com/20100603/tim-armstrong-session/#comments Thu, 03 Jun 2010 17:45:03 +0000 Peter Kafka http://d8.allthingsd.com/?p=456

Good news for AOL CEO Tim Armstrong: His predecessor, AOL founder Steve Case, thinks the Google veteran has a chance to turn around the company. The bad news: He has a very long way to go.

Liveblog

11:14 am: Apologies, technical difficulties–joining late.

11:15 am: Armstrong is traveling back in time, discussing AOL (AOL) prior to his arrival. The company was managed based on gross revenue and page views, and that may work for some, but those metrics didn’t make sense to me.

Kara: Such as?

Armstrong: The Bebo acquisition looked successful, because page views were shooting up, but unique visitors were dropping down. Photo galleries with 80 photos into it. That sort of stuff. We’re pulling back on that stuff.

Kara: You’ve been pulling back on a lot of stuff. Revenue is down, too. Not a bad idea to go to zero so you can build back up.

Armstrong: Hopefully we don’t go to zero. But (former Gap CEO) Mickey Drexler gave me good advice. He told me I’d be under a lot of pressure to move the numbers up and that I should resist it.

11:17 am: Kara–anyone from Google (GOOG) you didn’t hire?

Armstrong: We need people who are passionate, but also willing to play on a team. The analogy I use is “when I got to AOL, there were a lot of people playing golf.” We need people on an orchestra or a football team.

11:18 am: Kara–I’ve called this the best management team to run a digital lemonade stand. You have a big team and a small business.

Armstrong: Compared to Time Warner (TWX), it’s a small business. But it’s still a large business: 100 million unique users in the U.S., etc. Bigger point: We have the largest opportunity on the Internet. But I tell investors that they shouldn’t be expecting quarter-after-quarter results. That’s not what we’re doing.

11:19 am: Kara–Okay, so what’s the opportunity?

Armstrong: It’s melding technology and journalism. Local efforts via patch. “We believe the local marketplace for journalism is important, and the local marketplace for services online is important.”

11:22 am: Armstrong–Beyond local, there are other areas that we can move into to fill unmet needs. Like religion–big opportunity there.

Kara: So how are matching tech with journalism?

Armstrong: We’re marrying demand algorithms with…

Kara: Like Demand Media?

Armstrong: They’re more search-based. We’re trying something else. But also giving editorial people better data. When I was at Google, I used to go to meetings at publishers where sales people had reams of data, and the journalists had none. There’s a lot of fear that some journalists have about technology and data, but they can use them as tools. But “the fear is where the opportunity is….There’s no reason why technology can’t fuel opportunity.”

11:26 am: Kara–So how do you sell all this stuff?

Armstrong: We service a lot of large audiences, but have technology that lets you delineate that audience and just serve who you want. And we also have models that let brands get next to the appropriate content.

Kara: You mean putting brands in the story?

Armstrong: No. Church and state is important. Brands next to stories, getting brands in front of the appropriate audiences.

11:28 am: Kara–You’re selling off Bebo. Will anyone buy it?

Armstrong: We’ve said we will sell it or shut it down. We’ve had interest from people who are interested in buying it. We’ll see how that turns out.

Kara: What about other stuff you might sell?

Armstrong: We’re keeping stuff that’s valuable. Mail and communications are important to us.

Kara: Social networking, given that you’re selling Bebo?

Armstrong: Very valuable. But it will be a joint strategy. Being a principal in a social network is something that we’re clearly not focused on.

11:29 am: Kara–What about search? You helped sign that big Google deal.

Armstrong: Last week, we kicked off the process of the search deal. We are meeting with multiple partners.

Kara: So you’re not re-upping with Google?

Armstrong: Google has been a great partner for 10 years. There’s a disadvantage in that we know what works and doesn’t work, and so do they. So now we need to compare both our needs, with Google and others.

Kara: There are only two partners, right?

Armstrong: There are probably more than two that we’ll talk to [like who?]. We’re valuable to search partners because the AOL audience performs very well for search. We perform more strongly than our market share implies.

Kara: Will you want a guarantee like the original deal?

Armstrong: We have a rev-share deal. There may be upfront payments, there may not be. But either way, those upfront payments are usually about market. They’re not core to the arrangement.

11:33 am::Kara–How do you look at Google and what they’re doing?

Armstrong: One of the things that Google has done a really good job with is taking risks, and you know, push, push, push. Like a lot of successful companies.

On the outside, as a partner, you appreciate that innovation. On the partnership side, you have to realize that you’re one partner out of a lot of partners that they have. And that’s the piece of it where personal relationships really matter. With them or other partners.

11:34 am: Kara–What about risks they face?

Armstrong: Risk for any company that size is how do you keep innovating? When Mark Zuckerberg was up here and you guys were hammering him, that can make you want to retreat. And you have to keep innovating.

11:35 am: Kara–AOL used to be innovative and important. The brand is tarnished now. Can you revive it?

Armstrong: Two different brands. By the way, before I officially left Google, I had a lot of people telling me to kill off the brand. But then I traveled around. And I found that there’s the brand that media people know about, and the merger, etc. And then there’s the brand that everyone else knows, and they have warm fuzzy feelings about it.

11:37 am::Who are your competitors? What do you think of Yahoo (YHOO), etc.

Armstrong: We have partnerships with Yahoo; we compete with them for users and advertisers. But AOL is not in a situation where we need to give advice or comment to people about what they ought to be doing. Yahoo is a big, strong company, though their strategy is much more focused on what we’re doing now, which is great.

Q&A

Q: Are you doing anything about the Gulf oil spill? Are you doing anything with your local journalism to help people with that? (seriously).

A: We’re covering it nationally. But we actually are working with someone locally, where there’s a girl in a town, where she’s raising money for the Gulf, and it’s not a town on the Gulf, but we’re trying to help her.

Q: Can you talk about AOL culture and how it’s changed since you got there?

A: At Google, I was managing 2,500 people. Now I’m managing 4,700. So I’ve learned that cultures are okay when they’re moving–up or down–and everyone knows what the plan is. They don’t work when there’s no plan. So people who don’t want to stay and don’t like the plan need an opportunity to leave. This is “Full Metal Jacket.” Turning this company around is not going to be easy. It’s not going to be eight-hour days.

Q from Kara: Management style?

A: I’m collegial. But at the end of the day, sometimes I need to execute and get it done. Like when I came aboard, there was a $400 million check I had to sign for a distribution deal. And then I asked people at a meeting to speak up about it and tell me what they said. There have been many cases where I’ve had to make decisions without a collegial environment. But the culture is getting better and collegial.

Q&A over.

A note about our coverage: This liveblog is not an official transcript of the conversation that occurred onstage. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as possible. It is not intended as a transcript and should not be interpreted as one.

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]]> http://allthingsd.com/20100603/tim-armstrong-session/feed/ 0 http://allthingsd.com/20100603/richard-rosenblatt-paul-steiger-session/ http://allthingsd.com/20100603/richard-rosenblatt-paul-steiger-session/#comments Thu, 03 Jun 2010 16:10:32 +0000 Peter Kafka http://d8.allthingsd.com/?p=486

What’s the future of the media business? Demand Media, the Google-savvy “content farm” that generates thousands of computer-assigned, low-cost Web items a day? Or ProPublica, a nonprofit that produces deep-dive investigative pieces and publishes them on its own site and in the pages of high-profile partners?

Good guess: Some of both. But let’s allow both parties to make their own case.

Brief background: Demand Media is Richard Rosenblatt’s follow-up to MySpace, which he sold to News Corp. (NWS); Paul Steiger founded ProPublica after a long career at The Wall Street Journal.

Below is the full video of the interview, followed by the liveblog:

Liveblog

9:41 am: Kara asks Paul Steiger to explain what he’s up to.

Steiger: Stories are aimed at abuse of power and empowering people to make change. I started there because when I was leaving the Journal in 2007, the traditional news business was collapsing. We had $10 million in funding and that wasn’t something I could turn down in that environment. I didn’t have time to be worried–I had to leave the Journal because of mandatory retirement age, and my wife said I couldn’t wear sweatpants during the weekday.

9:44 am: Kara to Rosenblatt–Please explain the controversy regarding Demand.

[WARNING: Rosenblatt speaks very quickly. It's unlikely that I'll be able to get more than impressionistic stabs at what he's saying.]

“We only write content that people want….We’re not journalists, all right? The only people that call us journalists are journalists.” That said, what we do is “more like service journalism….There’s no piece of content made that we think is good” because we only make content that people tell us they think is good.

9:46 am: Rosenblatt–We do no marketing. All traffic comes from organic search.

I don’t know why people call this “dreck.” When you do something 6,000 times a day, it always looks like it’s of low-quality. We’re okay with that; we’re continually trying to prove to people that we’re doing good stuff.

We have a deal with USA Today and others that we’ll be announcing.

9:47 am: Kara to Steiger–What do you think of all this?

Steiger: I see this as a reordering of the environment that we’re all going to have to live in. You [Demand] make stuff people want; you control costs, and it’s working. Another model is the Politico model, with a combination of tightly controlled print plus a big Web site. We do the most expensive, the most important journalism for democracy.

Kara: Example?

Steiger: A story we did with the Los Angeles Times about nurses getting bogus licenses. A story about police in New Orleans killing people. There are five or six things like that in the past year where we can point to changes that have taken place because of our stories. These things can cost tens of thousands or hundreds of thousands to produce.

In the old days, that could be a loss leader for for-profit newspapers. Can’t do that anymore, so we need philanthropy. “Silicon Valley, come on in!”

9:50 am: Kara to Rosenblatt–Will you do “Top 10 nurses that beat people up”?

Rosenblatt: No

Kara: Wait a minute! People may want it!

Rosenblatt: I think journalism is important, and the problem is trying to pay for it. We can help publications like USA Today, where we generate content and revenue for them, and they can take that money to fund other reporting. We’re not going to save journalism, but we can help it.

Kara to Rosenblatt: You employ a lot of journalists.

Rosenblatt: Not journalists.

Kara: Former journalists?

Rosenblatt: They may have been former journalists, and they may do journalism somewhere else. We call them freelancers, content creators.

9:53 am: Kara asks Rosenblatt to explain editing/oversight.

Rosenblatt: Eleven people touch this stuff before it gets published, etc. Anyway, let’s say we do 7,000 pieces of content a day. That’s 77,000 individual touches per day, with 10,000 freelancers around the Web. That’s amazing. That’s what the Web is made for.

9:54 am: Kara–How do they get paid?

Rosenblatt: They can get paid by piece or by revenue-share. But most of them prefer to get paid by content, because it’s guaranteed.

9:55 am: Kara–at The Wall Street Journal, we had people who worked for months on a single story. Is that done?

Steiger: The Journal, the New York Times and Washington Post are still vertically integrated and have powerful enough brands and talent that I think they can make it into the next generation.

Kara: Two of those are in dicey shape.

Steiger: Remember that there are two things going on right now. There is a secular shift, with the business model being destroyed. But there’s also a recession. So as that eases, we’ll have a better sense of who can survive.

9:58 am: Steiger–I’d love to go back to 10 years ago, or longer, to the golden age of journalism. But not even Silicon Valley can produce a time machine.

Kara: So do you think even the big newspapers that survive will switch to audience-driven content creation? That’s not what journalism is about.

Steiger: No matter what you’re doing, you’re still making stuff with an idea of what the people who are reading you want. It’s a broader way of thinking about it than Demand, but there’s a common thread.

9:59 am: Kara to Rosenblatt–Where is your actual business? Is it domains?

Rosenblatt: We have two main businesses: Registrar/domains. It’s steady, recurring revenue, and it generates a lot of data. Almost 10 percent of the Web hits our servers via these domains. It’s an exciting source of data.

Then we have the media business. That’s 50 percent bigger, in revenue, than other business and growing fast.

Of that business, less than 10 percent is domain advertising business. Google (GOOG) and Yahoo (YHOO) stick ads on tenniselbow.com, etc. We think that’s a great business also.

Kara: Is your media business profitable?

Rosenblatt: Can’t talk about that.

Kara: Does that mean it’s not profitable?

Rosenblatt: Can’t talk about that.

Kara: But you’re going public, right?

Rosenblatt: Can’t talk about that.

10:03 am: Kara–you’re dependent on Google, right?

Rosenblatt: In the way that everyone is dependent on Google. Or that the iPhone is dependent on AT&T (T). But everyone searches on the Web. So some of our sites, like eHow, are getting traffic from Google. But others aren’t.

If Google changes their algorithm, we think about that. But we spend a lot of care on what we do, and we think there’s a move to quality long-tail content that Google values.

10:05 am: Kara to Rosenblatt–AOL is doing what you’re doing. Yahoo just bought Associated Content. It has more distribution than you do. What does that mean for you?

Rosenblatt: We love that AOL (AOL) and Yahoo are validating what we’re doing. “In a market this big, that’s in the first inning, there’s plenty of room for all of us.”

10:05 am: Kara to Steiger–How do you feel about the kind of journalism you do becoming nonprofit work? Does that depress you?

Steiger: “I’m the opposite of disheartened. I’m very excited.” Yes, the business is shrinking and people are losing jobs, and I don’t want to make light of that. But we’re attracting great people; we’ve won a Pulitzer Prize. The work will get done. The work is crucial to our society, and it needs philanthropic support. But so do orchestras and clinics and universities.

10:07 am: Kara–Is there a way to actually make money doing this?

Steiger: “Conceivably, but I can’t think of what it is.” If you’re focused entirely on this, “at this stage, you need philanthropic help.”

Kara to Rosenblatt: Can you think of how to do this?

Rosenblatt: You can hold a conference and charge people $5,000 a head. [Applause in conference room and in D8 cave.]

Q&A

For Rosenblatt: Why won’t you call your people “journalists”? Steve Jobs was full of venom for “bloggers,” too. Why not call people who write for money “journalists”?

Rosenblatt: If our writers want to call themselves journalists, great. But they’re not doing reporting from Afghanistan. We’re content creators, making things that people want.

Steiger: I just think that the labels get in the way.

Q: Who are those 11 people that touch Demand Media’s content? What do they do?

Rosenblatt: Some people are involved in “titling.” For SEO or social media purposes. Three people are involved in checking each title. Then people involved in each property select stories, depending on the voice. Then copy editors, copy chiefs, writers. We’re actually going to be adding more. We can make it so efficient, that we can add more roles, and everyone can keep making the same amount of money.

Q: What about rolling out content on the domains you run?

A: Not yet. Maybe in coming years. It’s not a focus right now. We do think the assets that you own and we own, we think those assets “have great optionality later” to put content on.

Q for Steiger: Do you share Steve Jobs’s distaste for bloggers?

Steiger: I sleep with a blogger! My wife blogs from 11 pm to 2 am. I’m an enthusiastic supporter of blogging. They bring a lot of audience to ProPublica’s Web site. I think what Steve was getting at is that there’s a danger of too many people commenting and not enough people finding out what’s going on. [I don't think that's entirely what Jobs was complaining about, btw.]

This content-creation session is now over.

A note about our coverage: This liveblog is not an official transcript of the conversation that occurred onstage. Rather, it is a compilation of quotes, paraphrased statements and ad-lib observations written and posted to the Web as quickly as possible. It is not intended as a transcript and should not be interpreted as one.

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