AllThingsD » player

Non-Fairytale Ending for 2011 Movie B.O. -- Time to Blame the Internet Again (Or Just Bad Movies)?

Kara Swisher — Mon, 26 Dec 2011 16:52:35 +0000

According to the expected year-end box-office data figures compiled by Hollywood.com, the industry raked in $10.1 billion for 2011 in North America.

While that seems like a nice haul, it’s 4.5 percent less than in 2010. While not enough to result a major downturn in limo-riding and Botox, the results are likely to cause entertainment moguls some worry, since they are accompanied by continuing trends, including another year of lower attendance.

And given that the revenue was unusually bolstered by more higher-priced 3-D movie-ticket prices — Hollywood released several dozen 3-D films in 2011, double the previous year’s amount — the latest numbers are even more disappointing.

While some holiday movies did well — namely “Mission: Impossible — Ghost Protocol,” which has taken in about $70 million domestically since its opening less than two weeks ago — it pales in comparison to such digital hits as Activision’s Call of Duty: Modern Warfare 3 videogame, which pulled in $400 million in one day from the much-desired youth market.

It surpassed $1 billion in sales in 16 days, eclipsing the box office of the blockbuster movie “Avatar,” which took 17 days to gross seven figures.

Does that mean that the continued competition for the leisure time of pretty much everyone between digital and analog has gotten worse — an epic battle of the movie industry versus game players, tablets and smartphones?

Or is it because so many movies made in 2011 turned out to be just awful? (If you saw “New Year’s Eve,” you’ll know exactly what I mean.)

One thing is clear: No one is going to pay for poor-quality content, no matter the screen size.

More number-crunching to come, as the industry debates the issue into 2012 (coincidentally, the title of a movie I happened to like, as you can see below!), and at the upcoming D: Dive Into Media at the end of the month, down near Los Angeles, in the belly of the Web-smacked beast.

Until then, let’s hope it does not come to this next year:

Sony's Kazuo Hirai on Reviving the Iconic CE Brand and More: The Full AsiaD Interview (Video)

Kara Swisher — Tue, 15 Nov 2011 19:45:28 +0000

We are now posting the full videos from the recent AsiaD conference, which took place in Hong Kong in October.

We’ve been following the schedule of the actual event. Up now: Sony’s Kazuo Hirai.

Hirai is a key figure at the Japanese consumer electronics giant, which has been struggling to revive itself after dominance turned to years of decline; he is widely considered the second in line to CEO Howard Stringer.

In an onstage interview with Walt Mossberg, the elegant exec, who was a longtime gaming exec at Sony, talked about the next-generation (but delayed) Vita game player, smartphones and Sony’s first Google Android tablets, which are now launching.

Here’s the video:

[ See post to watch video ]

Exclusive: Silver Lake Finally Signs Yahoo NDA, as Talks Proceed With Bidders

Kara Swisher — Wed, 09 Nov 2011 19:08:27 +0000

Score one for Yahoo, it seems, getting some key private equity firms to sign its restrictive non-disclosure agreement to allow them a special peek at its business.

And now that includes Silver Lake, which has already had several discussions with Yahoo management and its board members, including co-founder Jerry Yang.

Silver Lake, which has perhaps been among the more aggressive of the possible bidders for Yahoo, had been a significant holdout over the NDA, because of provisions it felt were too onerous.

That included restricting “cross-talk” among the variety of suitors interested. Sources said Silver Lake had been discussing various scenarios related to Yahoo that might take a consortium of players to realize.

It seems it will agree to none of that, for now at least, joining several others who have also signed on the dotted line of secrecy. While Yahoo could have agreed to changes in the NDA, sources said the one Silver Lake agreed to was the same as others previously signed.

Those NDA-ready PE firms include TPG Capital and KKR. As of today, other bidders — such as Providence Equity Partners, Bain Capital, Blackstone and Hellman & Friedman — have not yet signed the document.

Yahoo had extended a deadline for doing to into this week, but firms can also get involved in later rounds of talks.

In addition, signing the NDA is not the end of the road for those who do not — Yahoo is a prominent public company and there are plenty of sources to talk to about its prospects.

But getting cooperation of Yahoo management could be critical, unless a bidder is contemplating making an unsolicited offer.

And that would be a tough road — just ask Microsoft.

Most of all, getting everyone to sign is important for Yahoo, which wants to control any sales or investment process and wants to avoid bidders taking control of its fate.

Thus, Silver Lake accepting the NDA is a big deal, since it had been considering hooking up with China’s Alibaba Group in a possible bid for all or part of Yahoo.

In addition, it has had success in a smaller but similar scenario around Internet telephony giant Skype, which it eventually sold to Microsoft for a lucrative upside.

As with Skype, Silver Lake is still working with Andreessen Horowitz, as I had previously reported. In fact, principal Marc Andreessen was present in a recent informational meeting Silver Lake had with Yahoo’s Yang.

I asked Silver Lake for comment about the NDA, bur it, um, deflected my swooping inquiry (inside joke alert!).

Viral Video: Microsoft Songsmith Demo (Justin Bieber Can Relax Now)

Kara Swisher — Thu, 27 Oct 2011 12:08:05 +0000

Some things you cannot even make up. Take, for instance, this achingly awkward demo video for Microsoft’s Songsmith software.

[Update: The video has now been removed from YouTube. Can't imagine why ...]

Released several years ago, Songsmith is a product of Microsoft Research.

It has kind of been hawked in a goofy way over the years, but this just-posted video is simply the goofiest.

Using Songsmith, you can “make up your own hit sooooong,” growls the cheery Microsoft Store lady in the video.

Then she does and, somehow, the doomed Zune digital player is involved.

Oh, just watch it:

It's Called Google Propeller and It's Aimed at Flipboard (and Facebook, Too, Natch)

Kara Swisher — Fri, 16 Sep 2011 00:25:10 +0000

Please see this disclosure related to me and Google.

Earlier today, well-known digerati dude Robert Scoble posted on his social feed on Google+ that the search giant was working on a social and news reader.

“I heard from someone working with Google that Google is working on a Flipboard competitor for both Android and iPad,” posted Scoble. “My source says that the versions he’s seen so far are mind-blowing good.”

If blowing the minds of hot Silicon Valley start-up Flipboard and Facebook is the goal, then Scooby-Don’t's rumor is pretty spot-on.

According to numerous sources close to the situation, Google is indeed working on rolling out the new product, which is currently called Propeller.

Sources said Propeller is apparently one of a number of new socially focused announcements Google is prepping, including new apps. But the timing for their launch is unclear.

Here’s what is: Propeller is a souped-up version of similar reader apps such as Flipboard, AOL’s Editions, Yahoo’s Livestand, Zite (which was just bought by Time Warner’s CNN) and Pulse.

Facebook is also making social versions of publications available within its site. So, instead of just seeing a sidebar on a news site of what stories your friends liked, you’ll get a personalized and reformatted version of the latest news when you visit that publication’s page within Facebook.

All these apps are part of the drastically changing habits of media consumers, helping them better navigate numerous social and media feeds — such as Facebook and Twitter, as well as news sites and more — using handsome interfaces and touch technologies.

Flipboard is the most prominent and elegant of these offerings, available only on the Apple iPad. The company is working on an iPhone version, too.

Flipboard’s traction among elite users, along with its high-level design ethos and strong reviews, is why Google tried to buy the well-funded company last year, sources said.

But Flipboard — which is backed by some of tech’s biggest venture players, who have invested more than $60 million at a $200 million valuation — declined the kind offer.

At the time, sources said, Google told Flipboard execs that if it did not buy the start-up, it planned to do a version of its own.

Hence, after I heard about the product earlier this year, I dubbed it the Flipinator.

Propeller is probably a better name, I will admit.

It’s not clear what Google’s Propeller will include in the product, such as Facebook integration, since the pair of Silicon Valley behemoths have not been able to partner over data exchange.

Which is an understatement, I know.

But sources said it would be available on both Apple’s iPad and Google’s Android tablets.

In any case, stay tuned and thanks to Scoobs for the tip!

[Photo credit: This Noogler Propeller Hat -- which is given to all new Googlers -- is in the collection at the Computer History Museum, the gift of Marcin Wichary; the image is by Mark Richards.]

Sonos Adds Small but Mighty Play:3 to Wireless Lineup

Kara Swisher — Wed, 20 Jul 2011 05:31:45 +0000

Sonos, the maker of wireless music systems, said tonight that it is adding a new player called Play:3 to its lineup. The $299 unit is a smaller version of its existing high-fidelity offering, the Play:5, with three integrated speakers and three digital amplifiers.

G5 Idled? Check! Name Tags On? Check! Weeklong Mogul Fest in Sun Valley Will End With Zuckerberg-Gates Chit-Chat.

Kara Swisher — Wed, 06 Jul 2011 00:47:57 +0000

In case you haven’t heard, the tech and media moguls have jetted their private planes to Sun Valley, Idaho, for the exclusive annual Allen & Company confab and are probably easing into the cocktail hour just about now.

Break out the Kistler Chardonnay and name tags!

(I secretly love that the 300 moguls all wear name tags, even though they are all so fabulously famous.)

Among the highlights for the weeklong confab beginning today will be an interview of Facebook CEO and co-founder Mark Zuckerberg by Microsoft CEO Bill Gates, in which I assume they will fall all over themselves in a race of mutual admiration.

To be fair, it seems genuine and Sun Valley is not for unpleasantries anyway.

While Allen & Company — in its investment banker mode — likes to keep the schedule a state secret, it never is, so I am here to tell those planning their time in Sun Valley that the chit-chat will be Saturday.

Also sure to get a lot of ink, since all the owners and possible marks, um, potential buyers, will be there: Whither Hulu?

The premium online video service is famously for sale, and the moneybags at Google, Microsoft, Amazon and Yahoo (smaller bags!) are all taking a gander.

It will not be sold by week’s end, of course, although there will be all kinds of breathy media coverage as the powerful players shuttle to and fro from their gratis luxe condos in noisy hush-hushery.

Who will then come over to the bar to tell the gathered and increasingly drunken reporters — press is not invited in, but they’re there like kudzu all week — all about it.

Of course, there will be some cute anecdotes about the rich and famous — one year, it was News Corp. head Rupert Murdoch losing some item of his wife’s in said bar with everyone scurrying around to find it.

If Us Weekly were covering Sun Valley, that section would be called “Moguls Are Just Like Us!”

Actually, they’re not at all — mostly, they are meaner and more aggressive and greedier, although endlessly riveting.

That’s why the most awkward part of the event will be all the Sun Valley photos that appear without fail of these powermongers in shorts and fleece.

(Note to newcomers: Very few look good in shorts and fleece.)

Lastly, it would not be a modern Allen & Company Sun Valley gathering without continued fretting and fixating on the digital onslaught, even though there are scads of those invited techies competitively mountain biking the pretty mountains there.

This year’s focus will be the IPO gang from Zynga, Groupon and, of course, Facebook, whose insane market valuations are the envy of the media gang, who are mostly older and continually grumpy about it all.

But, the kids love this Internet thing and so the moguls will cope with the change, even as what happens in Sun Valley — power playing, but with a better view — never ever changes.

Will Yahoo Be In Play Again? Here's a Few Scenarios (That Could Be More Than Just Scenarios)

Kara Swisher — Fri, 22 Apr 2011 17:58:51 +0000

One of the results of Yahoo’s weak earnings report earlier this week has been the renewal of chatter about possible changes in its leadership and even ownership.

And continued investor discomfort with its troubled stock price–Yahoo shares are down 7.25 percent year over year and an astonishing 49 percent on a five-year basis–and the level of renewed grumbling by major institutional shareholders is causing some key players to go back to their PowerPoints to reevaluate various options.

(By way of contrast, Google is down about 4.5 percent year over year–largely due to last week’s earnings release with higher than expected expenses–but still up more than 20 percent for the five years.)

As many might recall, last year Yahoo was under scrutiny by a number of interested parties–from big media companies to other digital players to private equity firms–considering a number of takeover scenarios.

Most of them were just talk and no action resulted, but that did not mean that interest went away.

The truth is, they are still out there and ruminating–this time with what sources describe as a much more amenable Yahoo board, with several of its key members willing to entertain any legitimate offers or ideas to improve the Silicon Valley search giant’s prospects.

In the last go-round, by contrast, Yahoo’s top execs–including CEO Carol Bartz–denied any interest in the swirl of rumors related to a variety of ideas.

That’s definitely changed–at least at the board level–so here are three very credible scenarios of what could happen:

Peetie, Peetie, Yahoo-Sweetie

Late last year, BoomTown wrote a post about the interest that former News Corp. COO and President Peter Chernin–who now owns his own entertainment production company–had in the situation at Yahoo.

As I wrote in November:

But multiple sources from a variety of sides said that Chernin, a well-liked and deeply experienced media and entertainment exec, has been contacted by a number of private equity firms and other investors about his interest in becoming involved should any of the various and sundry scenarios around the Internet giant pan out.

And Chernin, many sources said, has expressed a definite interest in the situation, perhaps because he was deeply involved in a previous deal when running News Corp.

At the time, it involved combining the media giant’s Myspace social networking site with Yahoo and also Microsoft’s portal MSN and creating a new company, code-named “TrafficCo.”

Indeed, that interest remains for Chernin, who has also been an increasingly active investor, including in the digital sector. He is an angel funder of the hot social media app start-up Flipboard, and also just joined the board of the popular Pandora music service.

The most likely possible scenarios have him joining with deep-pocketed partners, including Providence Equity Partners and, yes, Microsoft, as well as investment banks or advisory firms, such as Morgan Stanley and Code Advisors.

The approach being considered–which would only be done in a friendly way, with the cooperation of Yahoo’s board–would center on making a large enough investment in its shares, allowing the group to take control of the management and the board, putting Chernin in as chairman and maybe CEO (or with a new CEO–see next section).

If Microsoft were involved–and Chernin has strong ties there–such a scenario might include folding all its online properties into Yahoo and renegotiating its rocky search partnership, too.

This is an idea that intrigues a lot of people–including current Yahoo board chairman Roy Bostock, co-founder Jerry Yang and other board members–who have indicated recently to several investors and dealmakers a willingness to listen to credible player such as Chernin.

But, in this scenario, it would be up to Chernin and his partners to make a prosposal, said sources, and he might decide that the complexity of getting the power to make big changes at Yahoo is too big to tackle.

In addition, Chernin remains a successful Hollywood player, with several major television and movie projects in the works, as well as big investment possibilities in Asia.

“Does he want the headache of Yahoo at this point in his career?” asked one person, among many Chernin has talked to recently about becoming involved in the company. “Would you?”

Maybe so, if it would provide a big financial windfall. Many think an exec with a reputation like Chernin’s could easily begin to move Yahoo’s moribund stock upward quickly.

ABC (Anybody But Carol)

Here’s one truth: Yahoo CEO Carol Bartz does not get proper credit for a number of moves she has made since coming to the company two years ago, including cleaning up the messy corporate structure, de-complexifying garbled systems, cutting costs and bringing its far-flung operations into line.

Yahoo’s stock is certainly doing better than when she arrived in early January of 2009, when it was in the $12 range compared to its current $16 price point.

But here’s another: That stock price now includes more than $10 in solid assets–cash and Yahoo’s much more valuable stakes in China’s Alibaba Group and Yahoo! Japan–leaving very little true share appreciation.

And here are more truths: Bartz’s inability to get revenues growing, innovations flowing, promising start-ups acquired and–most importantly–to stop the continual exodus of talent out the door of Yahoo has made her tenure shakier than ever.

Add to that making its relationships with Asian partners more tense, almost no traction in key mobile, video and social arenas, a record of loud public declarations that have fallen flat and serious troubles in Yahoo’s search and online partnership with Microsoft–a deal Bartz struck and is charged with managing–recently highlighted in Yahoo’s earnings earlier this week.

As shareholder activist Eric Jackson, who has long agitated for change at Yahoo, wrote this week in a post:

“The truth is that investors are fed up with Bartz. Their enmity towards Bartz is palpable when you talk to them. Bartz talked a big game coming into the job and she hasn’t delivered. It’s that simple.”

Well, not that simple and maybe not fair, but it’s also clear that no one thinks Bartz will be re-upped when her contract is up in 18 months.

Thus, it’s no surprise that ideas of other possible leaders of Yahoo are being contemplated now.

Here’s the short list I have made of my choices: Akamai President and Yahoo board member David Kenny; former Microsoft exec and current Juniper Networks CEO Kevin Johnson; former AOL CEO and current News Corp. digital head Jon Miller; and Nikesh Arora, current Chief Business Officer and sales head at Google.

There are plenty more to pick from, of course, and any could be installed in conjunction with an effort such as Chernin’s.

AOL Under the Hoop

No good Yahoo scenario plotting can be contemplated without including AOL and its flashy CEO Tim Armstrong.

Armstrong has made no secret of wanting to get ahold of Yahoo properties to apply the strategy he has been trying at AOL to get it moving again.

Which is: To become the premiere digital media company.

Which is actually Yahoo’s new motto–although arguably, in word and deed, Armstrong has been much more active in pushing the concept and narrative.

That includes his incessant acquisitions of all kinds of online media properties, including the big fish–the $315 million purchase of the Huffington Post and the coronation of its even-flashier co-founder Arianna Huffington as content chief.

Armstrong has certainly not been averse to the idea of a Yahoo-AOL hookup with him at the top, and has been actively talking to anyone interested in such a deal.

And things could get a lot more interesting if AOL linked with a bigger strategic partner, such as News Corp. or Disney or even Google, Armstrong’s former stomping grounds.

Still, wishing does not make it so, especially with a much smaller and weaker set of assets than Yahoo and a still poor record on goosing its advertising sales.

AOL’s stock is down 30 percent year over year, as investors still worry about Armstrong’s ability to turn the company around, which kind of puts him in the same situation as Bartz.

“AOL is waiting under the hoop for whatever happens, which is a good place to be,” said one person close to the situation. “Why not?”

Why not, indeed–so, let the games begin.

Sonos' John MacFarlane Talks About New Android Music Controller Rolling Out Today and More!

Kara Swisher — Tue, 19 Apr 2011 13:00:01 +0000

Yesterday afternoon, BoomTown pumped Sonos CEO John MacFarlane full of fancy tea and queried him about today’s rollout of its new Android controller for the innovative wireless music players.

As has been previously reported, the Santa Barbara, Calif. consumer electronics company will finally be launching an app for the Google mobile operating system.

Sonos will also be releasing a free software update for its software to make it easier to play Apple AirPlay music sources, as well as offer multitasking for the Apple iPad and Apple iPhone.

Until now, Sonos has been boosted by its Apple app that allows you to control its various players wirelessly with a smartphone or tablet.

The impact of the iPhone and the iPad on sales of its various devices has been clear enough, with just under one million sold. But the move to Android is key given the explosive growth of the mobile platform.

Here’s the video interview I did with MacFarlane, as well as an image of the app on an Android phone:

[ See post to watch video ]

Google's Eric Schmidt Shows Off Movie Studio, a Tablet Video-Editing App

Ina Fried — Tue, 15 Feb 2011 16:58:56 +0000

Google’s Eric Schmidt said that while computers are being criticized for driving humans apart, the opposite is actually taking place as devices are doing work that humans don’t want to.

“Computers are really here to make us happier,” Schmidt said, promising these devices will give people more time with friends and family, not less.

Schmidt, who gave up the CEO role last month, said that nearly all devices will get more interesting when they connect to the Internet. A music player that doesn’t connect to the network isn’t very interesting, he said, perhaps opening the door to the announcement of a long-talked-about, cloud-based Google music service.

The talk is just geting started. Mobilized got a really good seat in the front row, just two seats over from Andy Rubin, and has live updates below.

5:59 pm: Schmidt talking about things phones should be able to do, such as figure out better traffic routes and bridge language barriers. “You really can do magic,” he says, pointing to Google Translate, which lets you speak one language and have a language you don’t speak returned. “That’s done in a twentieth of a second or what have you,” he says.

6:01 pm: Brings out colleague to show an application on “an interesting new device.”

6:03 pm: The device is the Motorola Xoom tablet and the program is “Movie Studio,” an app built from the ground up for creating and editing movies on tablets.

He has a few images and videos from around Barcelona.

He creates a movie onstage and shows how it can easily be shared on YouTube. (This looks like iMovie and Windows Live Movie Maker so far–both of which also let you edit movies and share directly to YouTube.)

6:07 pm: Upload goes slowly, though, as Schmidt notes it is the problem of doing a demo at a mobile network convention where everyone is hammering the networks.

6:09 pm: The goal of many of Google’s products, Schmidt says, is to do tasks quickly so that people can get back to being human. “We ultimately believe that speed matters,” Schmidt says. Google Instant, he says, can save two to five seconds per search.

Search is also becoming more personal. With permission, users can get more information. Next up, he says, is autonomous search as information comes up as one walks or drives, and is driven by location.

“That’s just the beginning of a large number of new apps that use that infrastructure to make a big difference,” Schmidt says.

Schmidt says how much info to share will be up to the user, but those that opt in can get much richer results.

There’s also a trend, he says, to returning more structured data, such as travel.

6:12 pm: Stat time: 120 million people using Chrome, up three times from a year ago.

YouTube revenue doubled in 2010. Now just being able to monetize professional content at a rate that starts to make sense for content partners.

6:18 pm: Computer science can help all kinds of things, Schmidt says. With phones and tablets, “You never forget everything” which is precisely what phones are good at.

If you choose, you can remember the hotels you stayed in and the people you met, etc., “Humans forget,” he says.

Computers are also preventing people from ever getting lost. When I was a boy growing up in Europe “I was always lost,” Schmidt says.

Translation may not prevent war, but should at a minimum increase dialogue, Schmidt says.

6:18 pm: “Even better you are never lonely,” he sats, because computers can point you to nearby friends or connect you to distant ones.

You are never bored, Schmidt says. You are never out of ideas because we can always suggest what you can do next.

Other changes, include the self-driving cars that Google has been working on.

“It’s obvious that cars should drive (themselves),” he says, adding that there will be a “kill switch” in case there are bugs. And it will take time, he says.

“This is coming. It will be decades, I suspect–not a year.”

He also says these innovations will scale to the masses.

“It’s a future for the masses, not the elites,” he says.

6:21 pm: With that, on to Q&A.

6:23 pm: Talking about targeted broadcast quality ads as next frontier.

“Who wants to see an ad that is not relavent to them,” Schmidt says. And that leads to revenue, which Schmidt points out is the whole point of advertising in the first place.

6:24 pm: Question on Android fragmentation saying there is frustration among phone makers and developers.

“We hear some of this,” Schmidt says. “You’ve stated the problem more strongly than I would have, but I will take that as feedback.”

6:26 pm: Question about role of Google in financial services.

Schmidt quips that Larry Page and Sergey Brin periodically suggest that Google issue Google Bucks as its own currency, but Schmidt says he always points out the regulatory issues.

On a serious front, he talks about the power of near-field communications as a means to turn real-world transactions into electronic ones.

“In that are very large businesses,” he says.

(Google built NFC into its Nexus S device.)

6:29 pm: Are you interested in Twitter?

“We love Twitter and I like to tweet,” Schmidt says, eliciting laughter from the crowd.

6:31 pm: Why so many operating systems?

Sometimes these things occur because the teams move so quickly, Schmidt says.

People have been asking when Gingerbread and Honeycomb will come together. Schmidt: You can imagine the follow-on release will start with an “I” and be named after a desert and will combine the best of both, Schmidt says.

These releases occur on roughly a six-month cycle, Schmidt says.

6:33 pm: On Chrome OS, Schmidt says there will be an opportunity to merge that with Android over time, but better to wait for the operating systems to mature and a natural time than to push them together too soon.

6:34 pm: On HTML5, Schmidt imagines that some number of years from now, most apps–mobile and desktop–will be running on HTML5.

6:39 pm: Question on Google’s role in health care.

Phone should be able to, at a minimum, carry medical info. Several percent of queries on Google are health-related.

6:42 pm: Is Facebook with its “Like” button a main competitor?

Today our main competitor is Microsoft. Microsoft has a good product in Bing, he says.

“There’s a couple cases where it might be too good. We discussed that in a blog post.”

They have the cash, the scale and the reach to do good and amazing things.

6:44 pm: On Nokia-Microsoft partnership:

“We would have loved it had they chosen Android,” Schmidt says. “That offer remains open.”

Android would have been a good choice for Nokia, he says.

‘We certainly tried” to get them, he says.

6:46 pm: How do you approach the fact that Android going higher and lower in the market?

Schmidt says that the company tries to show the best in its Nexus line, while putting minimum specifications out there to set the bar for what developers can expect.

6:47 pm: Question on why Google is not more broadly used in the education market?

Schmidt says the company has funded a number of YouTube professors. “We’ve not yet come up with the killer [education] app,” he says.

6:49 pm: Asked about Google’s interest in the PC operating system market, Schmidt says that Google’s answer is Chrome OS. Sometime in the spring you will see a series of PC makers come out with Chrome OS devices. However, he adds they won’t run current PC apps, such as Windows apps.

“It does not run any of your current PC applications so you might think about it,” Schmidt said. That said, he adds there are, in most cases, cloud-based options that are roughly equivalent.

6:52 pm: With that, Schmidt wraps up.

Apple App Happy Sonos Also Goes Android

Kara Swisher — Thu, 10 Feb 2011 14:00:07 +0000

Sonos–the maker of innovative wireless music systems that has been boosted by its Apple iPhone and iPad Controller app–is set to roll out one for Google’s Android mobile operating system.

The Sonos Controller for Android will officially introduce the app at the Mobile World Congress in Barcelona next week, although the Santa Barbara, Calif., company is announcing it today.

“It’s a no-brainer,” said Sonos CEO John MacFarlane in an interview with BoomTown yesterday. “It basically doubles our market space.”

The free app allows you to control Sonos’s various players wirelessly with a smartphone or tablet.

The impact of the iPhone and the iPad on sales of its various devices has been clear enough, said MacFarlane, as registrations of the app have escalated.

“There is more usage of the smartphone, but tablets are clearly happening, said MacFarlane. “But I have the same view of both that these devices are the Holy Grail everyone has always wanted.”

The move to Android will take longer to beta test, he said, since its ecosystem has a plethora of unit types from a variety of handset makers.

The app will be out in March.

Here’s an image of the app on an Android phone and the official press release:

ROCK THE HOUSE: SONOS INTRODUCES SONOS CONTROLLER FOR ANDROID

Wireless Music System for Android Provides Unlimited Music, Incredible Control and Amazing Sound in Every Room

SANTA BARBARA, CA–February 10, 2011–Sonos, the leading developer of wireless multi-room music systems for the home, today introduced the Sonos Controller for Android, a free app that transforms most Android™ smartphones into a wireless music controller for the award-winning Sonos Multi-Room Music System. The Sonos Controller for Android, available in late March as a free download from Android Market™, will make its public debut next week at Mobile World Congress in Barcelona. To watch a video introduction of the Sonos Controller for Android, please visit www.sonos.com/android.

With the award-winning Sonos S5 in any room and an Android phone in hand, music lovers will enjoy an unmatched wireless music experience in the home. You’ll be able to access and play all the music on earth–from the Internet and your personal music library–throughout the home, wirelessly. Use the free Sonos Controller for Android app to control all your music and rooms, all from the palm of your hand. And, Sonos Controller for Android features Sonos’ latest innovation in the home music experience–music voice search–allowing users to find any artist, album or track by simply speaking into the phone.

“Sonos’ mission is to fill every home with music,” said John MacFarlane, CEO, Sonos, Inc. “We are thrilled to bring the joy of music to the homes of Android fans worldwide.”

To get started enjoying music in any or every room of the home, all you need is a Sonos ZonePlayer and a Sonos Controller such as the free Sonos Controller for Android. The most popular Sonos ZonePlayer is the Sonos S5, an all-in-one wireless music system you can plug in anywhere. Now you can play any track you like, anytime you like, in any room you like. Wirelessly play the same song in every room of the house–perfectly synchronized. Or, mix it up and play different songs in different rooms.

When it comes to controlling Sonos, you simply reach into your pocket for your Android smartphone. With Sonos Controller for Android, you can search for songs and stations by typing or speaking, choose the music and control the volume in as many rooms as you like. And because your Android phone is controlling the music, and not the source of it, when a text comes in or you need to make a phone call, the music doesn’t stop.

Sonos connects directly to the Internet so you can access a world of music without ever turning on your computer. Search and play more than 100,000 Internet radio stations, shows and podcasts–from around the world. Play songs, playlists and radio from the most popular music services like Deezer, iheartradio, Last.fm, Napster, Pandora, Rdio, Rhapsody, SiriusXM Internet Radio, Spotify, Wolfgang’s Vault, and more. And of course, Sonos can play your entire digital music library (such as iTunes) stored on a computer or Network Attached storage drive.

The Sonos Controller for Android is designed to work on any Android smartphone running Android 2.1 or later with a screen size of HVGA 320 x 480, WVGA 480 x 800 or WVGA 480 x 854. Sonos Controller for Android joins the family of Sonos Controllers which includes free apps for iPhone and iPad, a dedicated touchscreen controller, the Sonos Controller 200, and free software for your Mac or PC, included with every ZonePlayer. All controllers work together seamlessly.

Sonos will be demonstrating the Sonos Controller for Android at the Mobile World Congress in Barcelona, Spain February 13-17, 2011. For a demonstration in person, you’ll find Sonos at the following locations:
• Android: Hall 8; Booth 8C25
• Motorola: Hall 8, Booth 8A28
• Sonos: Hall 7; Suite 7HS11

For more information about Sonos or to locate an authorized Sonos dealer in your area, please visit www.sonos.com or call 877.80.SONOS.

When Marc Met Mike–Andreessen Interviews Ovitz

Kara Swisher — Wed, 08 Dec 2010 17:05:22 +0000

There is no question that legendary entrepreneur Marc Andreessen is a power player in Silicon Valley.

Nor that Michael Ovitz, who used to be the power player in Hollywood, is one of the people who did most to disrupt the way business was done in the entertainment industry, with his bare-knuckle approach at his groundbreaking Creative Artists Agency.

So, if you put them together, as happened recently at the Sand Hill Road offices of the Andreessen Horowitz venture firm, you get what turned out to be a very interesting discussion.

In fact, Andreessen actually interviewed Ovitz in front of a private audience about his life and philosophies.

BoomTown attended the event, which had been off the record until now, when a video of the talk was provided to All Things Digital.

The pair met up awhile ago, as Ovitz developed an interest in Silicon Valley after his glory days as an über-agent and his fateful stint as a top exec at Disney.

Here’s the video of the full interview, in which he talks about all of that. It’s long, at one hour, but–as you’ll find–quite riveting:

[ See post to watch video ]

Spotify's Daniel Ek Splashes Down at D: Dive Into Mobile

Kara Swisher — Thu, 02 Dec 2010 20:58:15 +0000

Next week, we’ll be putting on our first brand extension of the highly successful D: All Things Digital conference with D: Dive Into Mobile.

And we’ve just added an exciting new speaker to the already top-drawer list: Daniel Ek, co-founder and CEO of Spotify.

For those living under a rock, Ek (pictured here with co-founder Martin Lorentzon) leads one of the most exciting music services on the Web right now.

In fact, the Swedish entrepreneur is shaking up how and where people listen to and consume music.

As MediaMemo’s Peter Kafka–who will be interviewing Ek onstage–recently wrote of Spotify’s efforts to bring its hugely popular (and legal) streaming offering to the U.S. market:

In Europe, where Spotify has been a very big success, listeners can stream an unlimited amount of music, on demand, without ever paying a cent. But in the U.S., rival streaming services like Rhapsody, MOG and Napster generally only offer a very brief trial period of a few days before requiring that a pay wall go up.

For the past two years, Spotify has insisted that free, unlimited streaming is the only way the service will work, because that’s Spotify’s most effective marketing technique. Subscribers who do pay up get benefits like ad-free music, and the ability to port their songs to mobile devices like iPhones.

But the labels, most notably Warner Music Group, have insisted that unlimited free streams only serve to strip away their product’s remaining value–if you can listen for free on Spotify, why would you ever buy another CD or iTunes single?

The whole mobile music space is a riveting one to dive into, of course, and we think Ek is the perfect person to help us do so.

Ek will appear Tuesday morning, December 6, but D: Dive Into Mobile opens on Monday, December 6, with an evening onstage interview with Google Android majordomo Andy Rubin.

The new conference represents the very first brand extension of our D: All Things Digital conference, now in its ninth year of grilling the big names in tech and media to sold-out analog audiences and scores more on the Web.

And, as always, there will be no PowerPoints, no panels and definitely no pontificating.

What there will be are unrehearsed, unscripted and unexpected interviews with top players, taking a big-picture view of the broader digital landscape.

But, unlike big D, D: Dive Into Mobile is topic-focused, drilling down deeply into the ubiquity of mobile technology and devices, and its implications for brands, organizations and consumers worldwide.

Offering a more intimate and focused conference setting, D: Dive Into Mobile will feature other industry heavyweights, including: Dan Hesse, President and CEO of Sprint Nextel; Mike Lazaridis, co-CEO of Research in Motion; Mike McCue, CEO of Flipboard; Joe Belfiore, Vice President of Windows Phone Program Management at Microsoft; Jon Rubinstein of Palm, now owned by Hewlett-Packard; Foursquare CEO and co-founder Dennis Crowley; Google Ad Products Management head Susan Wojcicki; and AT&T Emerging Devices President Glenn Lurie.

D: Dive Into Mobile will be held at the Ritz-Carlton in San Francisco and, as usual, we’ll be liveblogging the whole thing and also posting highlight videos.

Along with Walt Mossberg, Kafka and I, Mossberg Solution’s Katherine Boehret will be conducting the interviews.

You can sign up here for D: Dive Into Mobile.

Google Announces Web TV Google TV

John Paczkowski — Thu, 20 May 2010 16:20:29 +0000

“The revolution we’re about to go through is the biggest single change in television since it went color.”

Intel (INTC) CEO Paul Otellini said that last week, hinting at the announcement Google (GOOG) made just moments ago: A new software platform for set-top boxes and televisions that promises to marry broadcast TV with the Internet. Its name: Google TV. Its tagline: “TV meets Web. Web Meets TV.”

Announced at this morning’s Google I/O event, Google TV’s purpose is, in the words of Senior Product Manager Rishi Chandra, “to bring the entire Web to the television set…to take the best of what TV offers these days and the best of what the Web offers and combine them.”

Anyone remember WebTV?

With Google TV, the aim is to rethink the navigation of TV and make it more like the Web. “The Web has a very simple and elegant model for finding information: A search box,” Chandra said. “We want to give you that same experience with television.”

To do that, Google (GOOG) has extended the breadth of its search to TV programming. The platform’s “quick search box” returns results from the Web, as well as TV listings. These include programs available for purchase on sites like Amazon (AMZN) and Netflix (NFLX)–both partners in this effort, apparently.

Says Chandra: “To a user it doesn’t really matter where I get my favorite content, whether it be live TV, DVR or the Web. We just want easy access….Google TV makes the Web a natural extension of the TV itself….It’s just as easy to go to any site on the Web as it is to go to any channel on your television.”

And to Web-based advertising as well, of course. Remember there are some four billion TV users worldwide.

“Many times I see and interesting ad, but I can’t do anything with it,” says Chandra. “But advertisers have Web sites and with picture-in-picture functionality, I can now click on an ad and see them….Now every ad on TV has the potential to become interactive.”

And presumably, there’s potential here for Google to make a small profit from each of them.

So how will all of this work? Google TV’s software is built on Android 2.1 and uses Google Chrome as its browser. Because of this, Android smartphones can be used as remotes and Android applications can actually be used on televisions running the platform–something some observers have been encouraging Apple to do with AppleTV for years. Google’s Android Marketplace will be accessible via Google TV.

On the hardware side, there will be Google TV set-top boxes, TV sets, and Blu-ray players. Sony (SNE) is developing a full line of integrated TVs and a Blu-Ray player as well. Logitech (LOGI) is producing a set-top box. And Intel (INTC) is providing Atom chips for all of them. We should begin seeing Google TV devices at Best Buy (BBY) this fall.

“We’re coming to market soon and we’re coming in a big way,” says Chandra.”…Our goal is to have the same impact on the TV experience that the smartphone had on the phone experience.”

Using an iPad Overseas and Extended Warranties

Walter S. Mossberg — Wed, 19 May 2010 22:02:59 +0000

If you buy a U.S. 3G iPad and take it to Europe, can you swap in a 3G SIM card from an authorized iPad carrier there to avoid AT&T (T) roaming fees?

I haven’t tried it, but Apple (AAPL) says the answer to this is yes. The company told me that if you insert a SIM from one its partner carriers, the carrier settings get set automatically when you plug in the SIM, though in some cases you might need to have connected your iPad to iTunes recently for this to work correctly. Apple adds that you can even use a SIM from a non-partner carrier, though in that case, you’d have to manually enter the carrier settings on the iPad. Note, however, that the iPad uses a new, smaller size of SIM card that not all carriers sell yet.

What is your view on extended warranties for a new laptop? My homeowner’s insurance covers accidental damage, but I am debating whether to buy a basic extended warranty for other problems.

I typically shun extended warranties for relatively inexpensive electronics devices, especially those, like digital cameras or music players, that tend to be very reliable. But laptops are costlier, more complex, and more prone to failures such as broken hard disks, bad memory or screen problems. So, in general, unless the price is outrageous, I would buy an extended manufacturer’s warranty for a laptop.

You can find Mossberg’s Mailbox, and my other columns, online for free of charge at the All Things Digital website, http://walt.allthingsd.com.

Videogame Industry Suffers Massively Multiplayer Sales Decline

John Paczkowski — Fri, 14 May 2010 13:50:08 +0000

April was another lousy month for the videogame industry. With overall revenue down 26 percent and hardware down 37 percent, it was the worst monthly year-over-year sales decline since last July, according to research house The NPD Group. It was also the 10th time in the last 13 months that sales have fallen year-over-year.

Nintendo sold 277,2000 Wiis, down from 557,500 in March and 340,000 a year ago. The company sold 440,800 Nintendo DS’s, down from 700,800 in March and 1.04 million a year ago.

Microsoft sold 185,400 Xbox 360s, down from 338,400 in March, but up from 175,000 a year ago.

Sony sold 180,800 PlayStation 3s, down from 313,900 in March, but up from 127,000 a year ago. And it sold 65,500 PSPs, down from 119,900 in March and 116,000 a year ago.

What’s driving the drops? Blame the portable gaming industry, which contributed more than its fair share to the industry decline, said NPD analyst Anita Frazier.

“The portable business across hardware, software and accessories accounted for 25 percent of total industry dollar sales in April,” Frazier explained. “But declines in portable sales compared to April ’09 accounted for 61 percent of the total industry decrease.”

That’s just abysmal, even if April is traditionally the slowest month of the year for videogame sales. Consider this: At 440,800, sales of the Nintendo DS tanked by more than 50 percent from more than one million last April.

So what’s going on? Perhaps consumers are postponing new portable game system purchases in anticipation of Nintendo’s new 3DS. Or perhaps they’re finding that their smartphones make fine gaming devices.

It’s not yet clear. But what is clear, and painfully so, is that the hardware refresh promised by Sony (SNE) and Microsoft (MSFT), which are adding new motion technology to their players, and Nintendo, which is debuting the 3-D version of its DS handheld, can’t come soon enough.

Streaming Video to a TV

Walter S. Mossberg — Thu, 08 Apr 2010 01:01:45 +0000

Is there a device that would enable me to watch streaming movies from Netflix directly on my TV, without using a computer?

Yes, there are many. A small portion of Netflix’s huge catalog is available for streaming, as opposed to viewing on DVD, and the company has struck deals with various makers of set-top boxes and other TV-connected hardware that allow these movies to be played directly on a TV. Among these are the Roku digital video player, TiVo digital video recorders, and the Xbox 360 and PlayStation 3 game consoles. The simplest and least expensive is the Roku, which starts at around $80. A complete list is at netflix.com/NetflixReadyDevices.

I’m going to graduate school, and need a PC mostly for word processing. I am not interested in gaming, movies, etc. I am looking at the Asus UL20A. Is that a good idea?

I haven’t reviewed this model, but, if you’re comfortable with its keyboard and screen, you should be fine using it mainly for word processing (though it’s capable of many other tasks). However, there are many competitors in this size and price range, and, unless you have already done so, I’d suggest shopping around to make sure the Asus is the best choice for you.

Which version of Windows (XP, Vista or 7) runs best using Apple’s Boot Camp?

I have run all three just fine on an iMac using Boot Camp, Apple’s built-in feature for booting Mac hardware into Windows when you like instead of into Apple’s (AAPL) own operating system. However, I would suggest Windows 7. It’s much better than Vista and much more modern than XP.

You can find Mossberg’s Mailbox and my other columns, free of charge, at walt.allthingsd.com.

Write to Walter S. Mossberg at walt.mossberg@wsj.com

Index Invests $25 Million in Sonos (Plus a Video Interview With VC Mike Volpi)

Kara Swisher — Fri, 12 Mar 2010 17:00:57 +0000

Earlier this week, BoomTown had lunch with Michelangelo “Mike” Volpi, the high-profile tech exec who turned into a venture capitalist recently at Index Ventures.

We also did a video interview (see below) about his new life as an investor, based in London, although Volpi managed to leave out the big news.

That would be a just-inked $25 million investment by Index from its growth equity arm in wireless home music system maker Sonos, as well as a new board seat there for Volpi. (Sonos’s hot new S5 unit is pictured here.)

In an interview this morning, Sonos CEO John MacFarlane said the money would be used for expansion at Sonos, which is just about to introduce its products to China and Japan.

“This investment is going to help us grow,” said MacFarlane. “We have wind at our back and this will help us a lot in keeping up that momentum.”

MacFarlane said the focus for Sonos, which has garnered $65 million–from BV Capital and mostly angel investors–with the Index investment included, is growth. He declined to give Sonos’s valuation in the new round.

The private company has been profitable, MacFarlane said, but its goal is to break even as it takes advantage of interest in its devices globally. Only about 35 percent of its business is now in the United States.

While running a small independent consumer electronics company is a dicey proposition, MacFarlane said Sonos is not interested in selling, as Pure Digital–maker of the Flip digital camera–did to Cisco (CSCO) a year ago for $590 million in stock.

In fact, Santa Barbara, Calif.-based Sonos, which is well known for its innovative top-line (and high-priced) music players, recently moved its business more mainstream with the introduction of the S5 unit in November.

The S5 allows control of the system via an Apple (AAPL) iPhone and only costs $399. (Here is a review of it by The Mossberg Solution’s Katie Boehret.)

The basic idea? A smart speaker paired with a smartphone.

The S5 has been a big seller and has increased product registration–when the software is activated by a user–by five times previous numbers so far, according to the company.

That could get a further boost with the April launch of the iPad, which seems perfect for controller software apps.

“The popularity of the iPhone is great for us,” said MacFarlane. “And we’ll do something great with the iPad.”

It will be nice to have a big score for Volpi, the former Cisco wunderkind. In fact, he invested in one of MacFarlane’s previous start-ups, Software.com, in 1995 when he was in charge of a variety of businesses there.

But the affable Volpi hit a bad patch recently while CEO of a much hyped but ultimately failed video service called Joost. It was that job that landed him in even hotter water.

In the wake of the decline of Joost, which he left to join Index, he was personally sued, along with Index, by its litigious co-founders over Index’s planned investment in Skype, the online telephony service they also co-founded.

Confused? Well, it was confusing.

And not the best start in the investment business for Volpi, after Index pulled out of the high-profile deal in a settlement of the lawsuits.

But, that’s “ancient history,” as Volpi said in the video interview below, which focuses on what’s next.

(News of the Index involvement in Sonos was first reported by TechCrunch earlier this week, though it did not have any details on the amount of funding.)

Although he did not mention the $25 million Sonos funding specifically in the video, Volpi does discuss his bullishness for consumer electronics.

Volpi presumably hopes others share his enthusiasm.

Here’s the video of my interview with him:

[ See post to watch video ]

HBO Go Is Nice, But It Won't Help Cord Cutters

Peter Kafka — Wed, 17 Feb 2010 17:29:10 +0000

The new “HBO Go” site, which lets you watch some 600 hours of the pay cable service’s programming on the Web, looks nice.

And if you’re a Verizon (VZ) Fios TV subscriber and you pay for HBO, you’ll get access to it for free starting tomorrow. But if you don’t want to wait–and you’re both a Comcast (CMCSA) and HBO subscriber–you can go to Comcast’s Fancast.com and watch the same programming there. It’s all the same stuff.

So to be clear: HBO Go isn’t really a new service. It’s a new site and player*, which perches on top of the same “TV Everywhere” strategy parent company Time Warner (TWX) has been pushing for a year or so. Which you can boil down to: If you pay the cable guys to watch it on TV, they’ll let you watch it online, too.

You can debate the merits of this strategy and whether the programming guys would be better off selling their stuff directly to consumers and skipping the cable middlemen altogether all you want. But the cable-first strategy isn’t going to change anytime soon.

HBO’s aim is to be both “consumer friendly” and “affiliate friendly,” HBO co-president Eric Kessler explained today. Translation: The company wants to make sure it gets paid by the cable guys, who get paid by you and me.

But couldn’t there be some fee I could pay HBO to just go directly to the Web, even at a premium of the price for a regular TV subscription? Nope, says Kessler, who then repeats something you often hear from the cable TV industry:

“The scale of the audience that wants to watch HBO that isn’t buying television, it’s a very small audience.”

Meanwhile, HBO Go points out the difficulty would-be online competitors like Netflix (NFLX) and Apple (AAPL) et al will have providing consumers with what they want when they want it: A lot of the digital rights to the stuff they want are already locked up by the likes of HBO during various “windows.”

One other point: Networks like HBO and cable providers like Comcast both want to be the viewers’ gateway to online video, for obvious reasons. But viewers won’t care whether they’re watching “Curb Your Enthusiasm” on HBO’s site or via Fancast; they just want to watch that episode where Marty Funkhouser tells Jerry Seinfeld a really dirty joke.

So someone–it could be the cable guys themselves or a start-up like Clicker–needs to build a comprehensive TV Guide for the Web. And then hope that they’re right about all those people who are happy to keep paying for TV.

*Because you now need to ask this with every consumer tech rollout: No, HBO Go won’t work on the iPad. Because the site’s player is built with Adobe’s (ADBE) Flash, and Apple wants nothing to do with Flash.

Microsoft's New Mobile Phone Software Is Coming (and Its "Project Pink" Still Lives)–But Should It Just Give Up and Buy RIM?

Kara Swisher — Mon, 08 Feb 2010 17:06:19 +0000

Next week at the Mobile World Congress in Barcelona, Spain, Microsoft is likely to unveil Windows Mobile 7, the new version of its mobile operating system, trying to create some excitement around its foundering mobile strategy.

“Foundering” is probably kind, given the innovative strides both Google (GOOG) and Apple (AAPL) have made in the smartphone arena in recent years by comparison.

That’s why rumors about the various attributes of the new mobile OS escalated again after Microsoft (MSFT) CFO Peter Klein noted at the company’s most recent earnings call: “As we have been saying from a product perspective, we are working very hard on the next version of Windows Mobile…we will be talking more about that in Barcelona in a few weeks.”

The most prominent of those rumors is that the new OS morphs into a kind of “ZunePhone,” incorporating functionality from the software of Microsoft’s digital music player.

And as one hand does software, Microsoft has also been doing the smartphone equivalent of a Long March with its “Project Pink,” the long anticipated multimedia touchscreen device that has been in development for a while by its Premium Mobile Experiences group.

That team is apparently hidden away in a Seattle office–as opposed to its nearby Redmond, Wash., HQ–and still includes some employees from Danger, the iconic company that designed the once-popular Sidekick mobile phone and was bought by Microsoft in 2008 for $500 million.

There, both Microsoft-designed hardware and software are being created, with some sort of device to come out this year, sources said, despite persistent rumors that the whole project would be scotched.

The hope–when the tech giant finally does end this very long gestation–is that it can finally get some traction in the increasingly important smartphone space, which is dominated by Apple’s iPhone and, farther behind, phones using Google’s Android operating system.

While Microsoft tirelessly argues that Windows mobile software is on many more phones around the globe than that of competitors, the challenge is clear externally–and internally, if you listen carefully to the griping about the company’s mobile strategy, which one exec there recently admitted to me was an “embarrassment.”

Indeed, this is why Microsoft and its giant wallet might be better served by buying one of the big and more established telecom companies, such as Research in Motion (RIMM), Palm (PALM) or even–as another Microsoft exec said to me, “Why not?”–Nokia (NOK).

Nokia has a market cap of close to $50 billion, with RIM at close to $38 billion. And Palm? A paltry $1.74 billion. Microsoft’s current valuation is $246 billion, and the company has $40 billion in cash and marketable securities on hand.

While the purchase of Danger was pricey given how little it has yielded as yet, to do such a deal would send shock waves throughout the industry and–if it were Nokia or RIM, both of which are non-U.S.-based companies–change the game immediately.

And, in fact, many sources at Microsoft have told me that CEO Steve Ballmer has expressed interest in buying RIM many times (while also dismissing any interest in Palm).

Well, at least, Ballmer is thinking big. And he should, because mobile, which everyone knows is the key platform in the coming era of computing, will be all about getting–as the saying goes–big or getting out.

Mel Karmazin's Wish List: More Satellite Radios, Fewer Journalists

Peter Kafka — Mon, 30 Nov 2009 21:23:21 +0000

Sales of new satellite radio players are doing just fine, Sirius XM CEO Mel Karmazin tells Reuters. That’s more important for the company than ever because car sales, which traditionally drove the company’s revenue, don’t seem likely to bounce back for quite some time.

Karmazin credits some of his sales success to a new ad campaign. I guess he has to say that inasmuch as he approved the campaign, but I have a hard time believing it. I’ve seen this ad several times, but until I read this interview, I had no idea it was for Sirius (SIRI):

Meanwhile, maybe it’s just self-interest/projection, but I was struck by the fact that Karmazin seemed to go out of his way to tell the Reuters staff how little he thought of it.

Or maybe he was talking about journalists in general: After being greeted by a dozen Reuters reporters at the company’s Global Media Summit,” Karmazin declared that if he was running the news service, only one of them would be employed.

Here’s Reuters media reporter Robert MacMillan’s account of the exchange, via Twitter:

Is Verizon's New Early-Termination Fee Anti-Consumer?

John Paczkowski — Fri, 06 Nov 2009 19:06:09 +0000

Beginning Nov. 15, Verizon subscribers looking to get out of their smart-phone contracts early will pay $350 for the privilege. That early-termination fee is double the current one, but Verizon insists it’s justified because of the higher prices of today’s phones.

“The cost of smart phones is considerably higher than feature phones for which the early termination fees were created years ago at $175,” said Verizon spokesman Jim Gerace. He added that the new $350 ETF declines by $10 per month through the life of the contract and customers can avoid it by buying their devices off contract and paying full retail price.

An interesting move for Verizon (VZ), which just last year agreed to pay $21 million to settle a class-action lawsuit filed by California consumers over the very early-termination fees it is now increasing. The plaintiffs in the suit alleged that Verizon’s ETFs were illegal under California law and that they were designed to unfairly lock consumers into long-term contracts and prevent them from switching carriers. When Verizon settled the suit, it denied any wrongdoing, insisting that early-termination fees are simply a means of recovering legitimate costs. And to some extent Verizon does have a point.

Full retail price for the Motorola’s (MOT) new Droid is $559.99. With a two-year contract, Verizon sells the handset for $199.99. Theoretically, that’s a $359.99 subsidy (I have no idea at what price Verizon purchases Droid from Motorola). So if Verizon allowed subscribers to break their contract after a month without paying an early-termination fee, the company would stand to lose money. And subscribers who did so could subsequently sell the device online and potentially make a profit, though a small one.

So it’s certainly understandable that Verizon and other carriers want to protect the subsidies they dole out for these new smart phones. And as noted earlier, Verizon’s new ETF drops by $10 each month a subscriber remains under contract. But at this rate, subscribers are still bound to pay a $110 termination fee in the 23rd month of a two-year contract. The contract is nearly over, the subscriber obligation to Verizon almost fulfilled, yet the company can still slap its customers with nearly a third of the full ETF if they break it at that time.

By month 23 of a two-year contract, does Verizon really stand to lose $110 if subscribers decide to switch carriers? Doesn’t seem likely if subscribers can walk away just a month later without consequence, taking their handsets with them.

Since Verizon is pro-rating the ETF, why isn’t it doing so in such a way that it zeroes out by the end of the contract?

And isn’t the fast pace of innovation in the smart-phone sector such that prices–for both component and device–are dropping so quickly that high ETFs aren’t really justified? Remember, you can get Apple’s (AAPL) iPhone for $99 today. When the iPhone debuted in 2007, it commanded a price of $499/$599, depending on model.

I’ve put those same questions to Verizon and will update here when I hear back. In the meantime, here’s what Consumers Union policy analyst Joel Kelsey has to say on the matter: “When people want to switch wireless services, the biggest cost they face is early termination fees. These fees are designed to lock people into long-term contracts and stop them from getting better deals. Early-termination fees make the marketplace less competitive. Verizon’s move is painful proof that it’s time for lawmakers to crack down on these fees.”

UPDATE: Verizon Wireless spokesperson Nancy Stark offers the following answers to the questions I posed above:

Your first question regarding the balance at month 23 or 24 assumes that, at that point, we have recovered all of our subsidy and up-front costs for every device. That simply is not so.

On your second question, while the pace of innovation plays a role in prices coming down somewhat, it also plays a role in driving up costs as more and more complexity that customers want is added to phones–from premium HTML browsers to high-resolution MP cameras with optical zoom; videoplayers; music players; dual processor chipsets; WiFi; very high display resolution, operating systems such as BlackBerry, Windows Mobile, Palm, Android–ALL with the added value (vs a desktop) of mobility, and ALL in one tiny device that ALSO allows you to talk to anyone from anywhere. phew! (by comparison, I recently paid $200 for a camera and all it can do is take pictures, and it has only middle of the road capabilities.)

But getting back to ETFs specifically. The most important point is that Verizon Wireless customers do not have to have an ETF at all if they do not want to. ETFs allow customers to have it either way: They can have no ETF and pay full retail for their device. OR, they can get a greatly discounted device by having an ETF.

HTC's Hero May Be Your Scene

Walter S. Mossberg — Thu, 01 Oct 2009 01:02:02 +0000

Super-smart phones based on Google’s Android operating system have been relatively slow to take off since the first one appeared a year ago. Despite Google’s iconic brand, they have yet to develop the strong bond with U.S. consumers achieved by the Research in Motion (RIMM) BlackBerry or the Apple (AAPL) iPhone. And, after a year, Android has less than 10% of the 85,000 apps the iPhone now offers.

[ See post to watch video ]

But Android is beginning to blossom in the market for this class of device, which is really a hand-held computer that performs many laptop-like functions.

In August, T-Mobile began offering a new $200 myTouch Android phone. Motorola (MOT) will shortly launch a new $200 Android model called the CLIQ. And, on Oct. 11, Sprint (S) will start selling perhaps the most unusual Android phone so far, the $180 HTC Hero. I’ve been testing the Hero, a touch-screen phone without a physical keyboard that has some important distinctions from earlier Android models. In general, I like the Hero and can recommend it to Sprint customers, or others looking for something powerful, but different.

HTC, a veteran Taiwan-based maker of phones, has altered Android more than anyone else so far. It has been gradually developing its own signature software layer that sits atop phone operating systems. With the Hero, it has applied this software for the first time to an Android phone, and that’s what sets the Hero apart from its Android brethren. The latest, beefed-up, version of this HTC software is called “Sense.”

Sense includes handsome, large widgets with extra features that go beyond the vanilla Android experience supplied to everyone by Google (GOOG). So the Hero looks and behaves somewhat differently. For instance, a contact page in the address book application consolidates that contact’s Facebook and Flickr accounts. The music player and photo album look better, and the Hero with Sense can use Microsoft’s Exchange service to synchronize mail, calendars and contacts.

Sprint’s HTC Hero

Sense also offers something called Scenes—entire collections of sets of screens and apps, either canned or customized, that can change the phone software’s look and feel. With just a couple of clicks, you could switch between a work-oriented “scene,” that prominently features apps such as a stock tracker and your work email, and an entertainment-oriented scene filled with the music player, photo album and other apps.

As with Sprint’s Palm (PALM) Pre, the Hero’s price is a bit deceptive. To get the phone for $180, you must remember to mail in a rebate form worth $100. At purchase, you have to put up $280. On the other hand, Sprint’s monthly fees can be much cheaper than those for other carriers. You’ll have to pay at least $70 a month to use the Hero, the same minimum fee that AT&T charges iPhone owners. But Sprint’s fee, unlike AT&T’s (T), includes unlimited text messaging and unlimited free calls to any mobile number on any network.

The Hero’s hardware isn’t especially beautiful. It’s a dull grey, noticeably thicker than the iPhone, with a smaller screen and six buttons plus a trackball, which adds another navigation option to the touch screen. It’s the same length as an iPhone, but is a bit narrower and lighter. It comes with just two gigabytes of memory, compared with eight gigabytes on the $99 iPhone and 16 gigabytes on Apple’s $199 model, though the Hero’s memory, unlike the iPhone’s, is expandable via a hard-to-reach slot under its removable back cover.

One big drawback is battery life. Sprint is only claiming up to four hours of talk time for the Hero, versus five hours for the Pre and iPhone. But, unlike the iPhone’s, the Hero’s battery is removable. Another drawback: I sometimes found the touch screen unresponsive, requiring multiple pokes at an icon.

On the plus side, the Hero has a much higher resolution camera than the iPhone’s or Pre’s—five megapixels versus three megapixels.

It also functions as a video camera, and in my tests, both still photos and videos I took looked very good. Phone calls, even on speaker phone, were clear and strong, and the phone has Wi-Fi and Bluetooth in addition to Sprint’s high-speed network, which in my view is better than its reputation. Web browsing was adequate.

HTC’s Sense gives the Hero seven screens on which to place apps, versus Android’s standard three screens.

And, in addition to the standard Android apps and the 8,000 downloadable apps from Android’s Market app store, there are a variety of large, beautiful HTC “widgets” you can use. The downside of these is that they can occupy an entire screen.

The most impressive widget is called People. It’s an address book in which each contact’s page features a scrolling bar at the bottom with icons that allow you to see that person’s most recent Facebook status, photos from Facebook and Flickr, plus emails and text messages she’s sent to you and recent calls between you. This is somewhat similar to Palm’s Synergy feature, which is also based around people.

Overall, I found the HTC Hero to be the best Android phone I’ve tested, and a worthy competitor to the iPhone, the BlackBerry and the Pre.

Find all of Walt Mossberg’s columns and videos online, free, at the All Things Digital Web site, walt.allthingsd.com. Email him at mossberg@wsj.com.

Walkman Outsells iPod in Japan–Sort Of

John Paczkowski — Thu, 03 Sep 2009 18:07:09 +0000

Sony’s Walkman outsold Apple’s iPod in Japan for the first time in more than four years last week, according to a report from research outfit BCN.

The Japanese company’s share of the portable music player market rose to 43 percent, surpassing Apple’s 42.1 percent and ending the iPod’s 241-week run as Japan’s top portable media player.

A noteworthy victory for the Japanese electronics giant, but one that says more about just how far the once great company has fallen than anything else. That it took Sony (SNE) this long to unseat Apple (AAPL) in its home market is astonishing–all the more so given the vast success of the Walkman and the mindshare it once commanded.

And one could argue that Sony hasn’t actually beaten Apple at all. BCN’s survey didn’t include the iPhone because it views that device as a phone. But obviously, it’s an iPod as well–BCN notes that the handset has clearly cannibalized iPod sales. Had BCN classified the iPhone as the media player that it is, Apple would almost certainly have maintained its lead over Sony in the Japanese market.

Walkman Outsells iPod in Japan–Sort Of

John Paczkowski — Thu, 03 Sep 2009 18:07:09 +0000

Sony’s Walkman outsold Apple’s iPod in Japan for the first time in more than four years last week, according to a report from research outfit BCN.

The Japanese company’s share of the portable music player market rose to 43 percent, surpassing Apple’s 42.1 percent and ending the iPod’s 241-week run as Japan’s top portable media player.