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		<title>Condé Nast Tries Turning the App Store Into a Newsstand: Will You Buy GQ for Your iPhone?</title>
		<link>http://allthingsd.com/20091020/conde-nast-tries-turning-the-app-store-into-a-newsstand-will-you-buy-gq-for-your-iphone/</link>
		<comments>http://allthingsd.com/20091020/conde-nast-tries-turning-the-app-store-into-a-newsstand-will-you-buy-gq-for-your-iphone/#comments</comments>
		<pubDate>Tue, 20 Oct 2009 19:26:56 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12256</guid>
		<description><![CDATA[Cond&#233; Nast is still in layoff mode, but that hasn't stopped the publisher from putting together an app worth writing about. It's part of a digital magazine strategy that actually makes some sense.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/10/megan-fox-gq-october-2008-06-771162.jpg"><img class="alignright size-medium wp-image-12259" title="megan-fox-gq-october-2008-06-771162" src="http://mediamemo.allthingsd.com/files/2009/10/megan-fox-gq-october-2008-06-771162-231x300.jpg" alt="megan-fox-gq-october-2008-06-771162" width="231" height="300" /></a>I&#8217;ve all but declared a moratorium on &#8220;Company X has an iPhone app&#8221; stories&#8211;memo to PR folk: There are now <a href="http://seekingalpha.com/article/167404-apple-f4q09-qtr-end-9-26-09-earnings-call-transcript?page=-1"><em>85,000 apps</em></a>&#8211;but this one is actually interesting: Cond&eacute; Nast is turning the app into a digital magazine.</p>
<p>The publisher plans to start selling digital copies of its print titles via a yet-to-be-approved app. Cond&eacute; will start with the December issue of GQ, which it will sell for $2.99 (versus a newsstand price of $4.99), but the idea is that the publisher can use the same technology to sell other issues of other magazines down the road.</p>
<p>Cond&eacute; says the GQ digital issue will replicate the print one on a page-by-page basis, including the ads. Digital bonuses include related videos, as well as links to sites for products (clothing, music, etc.) featured in the issue.</p>
<p>I wasn&#8217;t able to attend Cond&eacute;&#8217;s presentation this morning, so I can&#8217;t tell you how its attempt to transfer a rich glossy magazine onto a phone (or iPod touch) actually works. But for now, I&#8217;ll take the company&#8217;s word for it and assume that it&#8217;s a nice alternative to carrying around some dead trees.</p>
<p>The interesting question is the business model, which I think has some real potential. This doesn&#8217;t solve Cond&eacute;&#8217;s core problem&#8211;its <a href="http://mediamemo.allthingsd.com/20091009/conde-cuts-continue-15-at-digital-more-to-come/">costs are too high</a> to <a href="http://mediamemo.allthingsd.com/20091014/condes-cuts-come-to-vogue/?mod=ATD_sphere">support</a> its <a href="http://mediamemo.allthingsd.com/20090721/heres-why-mckinseys-coming-to-conde-nast-the-coming-black-september/">shrinking ad revenue</a>&#8211;but it does have several things going for it.</p>
<p>For one, this approach reaches its potential readers where they are: I don&#8217;t want to read a magazine at my desk, and I&#8217;m far from sold on the idea of buying a specialized reader to consume it digitally. Getting it to me on my phone, which goes wherever I do, is the way to go.</p>
<p>It also generates some (potential) additional revenue for Cond&eacute; Nast right off the bat without creating a channel conflict with its analog product line: Cond&eacute; will be able to count any magazines sold via its app platform toward its audited circulation numbers, a trick that no publisher has been able to pull off with Web products so far. Meanwhile advertisers in the print publication who want to add digital links to the iPhone version will pay a premium, Cond&eacute; says. <em>And</em> the publisher has been able to extract additional dollars from Grey Goose and Gillette, which will be &#8220;premium sponsors&#8221; of the GQ issue.</p>
<p>Bonus upside: Cond&eacute; says the technology it has assembled for this effort should work well for future Apple (AAPL) products, like, say, its mythical tablet. &#8220;We think that the minute Apple is ready, if they ever are, to announce that they&#8217;re going forward with a tablet, that we&#8217;ll be ahead of everybody,&#8221; says Sarah Chubb, president of Cond&eacute; Nast Digital.</p>
<p>This doesn&#8217;t solve the distribution issue that Cond&eacute; and other publishers have with Apple, Amazon (AMZN) and other potential digital delivery outfits: Apple, not Cond&eacute;, will control the billing relationship for the app. But then again, Cond&eacute; doesn&#8217;t get to interact with you when you buy a magazine at a newsstand either, so at least it&#8217;s not getting disintermediated.</p>
<p>The question, as always, is whether customers are willing to pay anything at all for content they&#8217;ve been getting free on the Web. I still think we&#8217;re going to end up with a small segment of people willing to pay up for specialized stuff and a very large group that are going to end up with free things of <a href="http://mediamemo.allthingsd.com/20091020/rise-of-the-machines-why-demand-media-is-worth-more-than-the-new-york-times/">dubious value</a>. It would be great to be proved wrong, though.</p>
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		<title>EC to Intel: How&#039;s This for &quot;Manifestly Disproportionate?&quot;</title>
		<link>http://allthingsd.com/20090921/ec-to-intel-hows-this-for-manifestly-disproportionate/</link>
		<comments>http://allthingsd.com/20090921/ec-to-intel-hows-this-for-manifestly-disproportionate/#comments</comments>
		<pubDate>Mon, 21 Sep 2009 18:16:49 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=25146</guid>
		<description><![CDATA[Intel’s criticism of the European Commission’s legal acumen clearly has not gone over well in Brussels. The EC today responded to Intel’s claims that the Commission's antitrust ruling against the company was meted out in error by releasing the full text of its decision and a selection of email correspondence and internal memos that make it clear that Intel probably should have kept its big mouth shut.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/09/ec_intc-150x1501.jpg" alt="ec_intc-150x150" title="ec_intc-150x150" width="150" height="150" class="alignright size-full wp-image-25148" />Intel’s criticism of the European Commission’s legal acumen clearly has not gone over well in Brussels. The EC today responded to <a href="http://digitaldaily.allthingsd.com/20090916/the-ec-pay-intel’s-legal-expenses-uh-good-luck-with-that-one/">Intel’s claims that the Commission&#8217;s antitrust ruling against the company was meted out in error</a> by releasing <a href="http://ec.europa.eu/competition/sectors/ict/intel.html">the full text of its decision</a> and  <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/400&amp;format=HTML&amp;aged=0&amp;language=EN&amp;guiLanguage=en">a selection of email correspondence and internal memos</a> that make it clear that Intel (INTC) probably should have kept its big mouth shut.</p>
<p>&#8220;There have been some suggestions that the decision was based on allegations and not facts,&#8221; said Jonathan Todd, a commission spokesman. &#8220;With the publication of this decision, you can see precisely the details of the facts and how Intel broke the law.&#8221;</p>
<p>Below, a few of those details:</p>
<blockquote class="memo"><p>
<strong>From a  series of 2006 Lenovo e-mails:</strong><br />
&#8220;As you know I have been negotiating a special deal with Intel. The net is that Intel has made us a very attractive offer that we will end up taking. Our part of this deal is that we will award all business of shipments for the rest of this calendar year to Intel. In exchange, Intel will give us a special deal for both [geographical area] and [geographical area]. The deal is worth millions of dollars.&#8221;</p>
<p>&#8220;[two Lenovo executives] had a dinner with [an Intel executive] tonight (…). […] When we asked Intel what level of support we will get on NB [notebook] in next quarter, [he] told us (…) the deal is base[d] [sic] on our assumption to not launch AMD NB [notebook] platform. (…) Intel deal will not allow us to launch AMD.&#8221;</p>
<p><strong>From a  2002 HP e-mail concerning the company’s negotiation of a rebate agreement with Intel:</strong><br />
&#8220;PLEASE DO NOT&#8230; communicate to the regions, your team members or AMD that we are constrained to 5 percent AMD by pursuing the Intel agreement.&#8221;</p>
<p><strong>From a 2004 HP e-mail:</strong><br />
&#8220;You can NOT use the commercial AMD line in the channel in any country, it must be done direct. &#8220;If you do and we get caught (and we will) the Intel moneys (each month) is gone (they would terminate the deal). The risk is too high.&#8221;</p>
<p><strong>From a 2004 Dell e-mail:</strong><br />
&#8220;[Intel senior executives] are prepared for [all-out war] if Dell joins the AMD exodus. We get ZERO MCP for at least one quarter while Intel ‘investigates the details’ (…) We’ll also have to bite and scratch to even hold 50%, including a commitment to NOT ship in Corporate. If we go in Opti [Optiplex corporate desktop line], they cut it to <20% and use the added MCP to compete against us" and "It looks 100% certain that Intel will take MCP to ZERO for at least one quarter while they 'review all of the numbers and implications.' (...) Appears likely that Intel would take MCP to <25% of current levels UNLESS we agree up front not to ship into [Product line]. If we do that, we're in 'détente' mode and can keep MPC [sic] at 50%. However, we don't meet [AMD Senior Executive]'s T&#038;Cs [Terms and Conditions]. So, I would plan on MCP at <20% levels if we execute AMD across [Product line]and [Product line] as AMD wants."
</p></blockquote>
<p>Sounds pretty damning, no? Well, Intel doesn’t think so. In a hastily issued response, the company dismissed the EC’s release of the documents saying, &#8220;there’s nothing new here.&#8221;</p>
<p>&#8220;This Decision reflects the underlying bias we have come to expect from the case team that ran this investigation,&#8221; Intel said. &#8220;The Commission relied heavily on speculation found in e-mails from lower level employees that did not participate in the negotiation of the relevant agreements. At the same time, they ignored or minimized hard evidence of what actually happened, including highly authoritative documents, written declarations and testimony given under oath by senior individuals who negotiated the transactions at issue.&#8221;</p>
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		<slash:comments>3</slash:comments>
		</item>
		<item>
		<title>EC to Intel: How's This for "Manifestly Disproportionate?"</title>
		<link>http://allthingsd.com/20090921/ec-to-intel-hows-this-for-manifestly-disproportionate-2/</link>
		<comments>http://allthingsd.com/20090921/ec-to-intel-hows-this-for-manifestly-disproportionate-2/#comments</comments>
		<pubDate>Mon, 21 Sep 2009 18:16:49 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
				<category><![CDATA[News]]></category>
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		<guid isPermaLink="false">http://digitaldaily.allthingsd.com/?p=25146</guid>
		<description><![CDATA[Intel’s criticism of the European Commission’s legal acumen clearly has not gone over well in Brussels. The EC today responded to Intel’s claims that the Commission's antitrust ruling against the company was meted out in error by releasing the full text of its decision and a selection of email correspondence and internal memos that make it clear that Intel probably should have kept its big mouth shut.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/09/ec_intc-150x1501.jpg" alt="ec_intc-150x150" title="ec_intc-150x150" width="150" height="150" class="alignright size-full wp-image-25148" />Intel’s criticism of the European Commission’s legal acumen clearly has not gone over well in Brussels. The EC today responded to <a href="http://digitaldaily.allthingsd.com/20090916/the-ec-pay-intel’s-legal-expenses-uh-good-luck-with-that-one/">Intel’s claims that the Commission&#8217;s antitrust ruling against the company was meted out in error</a> by releasing <a href="http://ec.europa.eu/competition/sectors/ict/intel.html">the full text of its decision</a> and  <a href="http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/09/400&amp;format=HTML&amp;aged=0&amp;language=EN&amp;guiLanguage=en">a selection of email correspondence and internal memos</a> that make it clear that Intel (INTC) probably should have kept its big mouth shut. </p>
<p>&#8220;There have been some suggestions that the decision was based on allegations and not facts,&#8221; said Jonathan Todd, a commission spokesman. &#8220;With the publication of this decision, you can see precisely the details of the facts and how Intel broke the law.&#8221;</p>
<p>Below, a few of those details:</p>
<blockquote class="memo"><p>
<strong>From a  series of 2006 Lenovo e-mails:</strong><br />
&#8220;As you know I have been negotiating a special deal with Intel. The net is that Intel has made us a very attractive offer that we will end up taking. Our part of this deal is that we will award all business of shipments for the rest of this calendar year to Intel. In exchange, Intel will give us a special deal for both [geographical area] and [geographical area]. The deal is worth millions of dollars.&#8221;</p>
<p>&#8220;[two Lenovo executives] had a dinner with [an Intel executive] tonight (…). […] When we asked Intel what level of support we will get on NB [notebook] in next quarter, [he] told us (…) the deal is base[d] [sic] on our assumption to not launch AMD NB [notebook] platform. (…) Intel deal will not allow us to launch AMD.&#8221;</p>
<p><strong>From a  2002 HP e-mail concerning the company’s negotiation of a rebate agreement with Intel:</strong><br />
&#8220;PLEASE DO NOT&#8230; communicate to the regions, your team members or AMD that we are constrained to 5 percent AMD by pursuing the Intel agreement.&#8221;</p>
<p><strong>From a 2004 HP e-mail:</strong><br />
&#8220;You can NOT use the commercial AMD line in the channel in any country, it must be done direct. &#8220;If you do and we get caught (and we will) the Intel moneys (each month) is gone (they would terminate the deal). The risk is too high.&#8221;</p>
<p><strong>From a 2004 Dell e-mail:</strong><br />
&#8220;[Intel senior executives] are prepared for [all-out war] if Dell joins the AMD exodus. We get ZERO MCP for at least one quarter while Intel ‘investigates the details’ (…) We’ll also have to bite and scratch to even hold 50%, including a commitment to NOT ship in Corporate. If we go in Opti [Optiplex corporate desktop line], they cut it to <20% and use the added MCP to compete against us" and "It looks 100% certain that Intel will take MCP to ZERO for at least one quarter while they 'review all of the numbers and implications.' (...) Appears likely that Intel would take MCP to <25% of current levels UNLESS we agree up front not to ship into [Product line]. If we do that, we're in 'détente' mode and can keep MPC [sic] at 50%. However, we don't meet [AMD Senior Executive]'s T&#038;Cs [Terms and Conditions]. So, I would plan on MCP at <20% levels if we execute AMD across [Product line]and [Product line] as AMD wants."
</p></blockquote>
<p>Sounds pretty damning, no? Well, Intel doesn’t think so. In a hastily issued response, the company dismissed the EC’s release of the documents saying, &#8220;there’s nothing new here.&#8221;</p>
<p>&#8220;This Decision reflects the underlying bias we have come to expect from the case team that ran this investigation,&#8221; Intel said. &#8220;The Commission relied heavily on speculation found in e-mails from lower level employees that did not participate in the negotiation of the relevant agreements. At the same time, they ignored or minimized hard evidence of what actually happened, including highly authoritative documents, written declarations and testimony given under oath by senior individuals who negotiated the transactions at issue.&#8221;</p>
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		</item>
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		<title>iPhone 3GS and Palm Pre: Methadone for the CrackBerry Addict</title>
		<link>http://allthingsd.com/20090709/iphone-3gs-and-palm-pre-methadone-for-the-crackberry-addict/</link>
		<comments>http://allthingsd.com/20090709/iphone-3gs-and-palm-pre-methadone-for-the-crackberry-addict/#comments</comments>
		<pubDate>Thu, 09 Jul 2009 12:32:07 +0000</pubDate>
		<dc:creator>John Paczkowski</dc:creator>
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		<description><![CDATA[Research in Motion best get to work refreshing its shopworn BlackBerry line, and fast, because growing competition from new rivals like the iPhone 3GS and Pre are cutting into its market share. According to retail checks conducted by Piper Jaffray analyst T. Michael Walkley, the BlackBerry slowed as the summer kicked off and AT&#38;T and Sprint began peddling new smartphone offerings from Apple and Palm.]]></description>
			<content:encoded><![CDATA[<p><img src="http://digitaldaily.allthingsd.com/files/2009/07/frankenberry-150x150.jpg" alt="frankenberry" title="frankenberry" width="150" height="150" class="alignright size-thumbnail wp-image-21040" />Research in Motion best get to work refreshing <a href="http://digitaldaily.allthingsd.com/20090626/rimm-product-line-more-frankenberry-than-crackberry/">its shopworn BlackBerry line</a>, and fast, because growing competition from new rivals like the iPhone 3GS and Pre are cutting into its market share.</p>
<p>According to retail checks conducted by Piper Jaffray analyst T. Michael Walkley, the BlackBerry slowed as the summer kicked off and AT&#038;T (T) and Sprint (S) began peddling new smartphone offerings from Apple (AAPL) and Palm (PALM).</p>
<p>“Our checks indicated BlackBerry sales declined in June at AT&#038;T and Sprint due to increasing smartphone competition, as BlackBerry sales appeared to lose share to the Palm Pre at Sprint and the new 3GS iPhone and older $99 iPhone at AT&#038;T,” Walkey wrote in a research note to clients. “BlackBerry sales at T-Mobile remained solid, but Verizon sales were slightly weaker following the termination of the buy one, get one promotion.”</p>
<p>Unfortunate news for RIM (RIMM), but perhaps to be expected given the lackadaisical evolution of the  company’s product line. New devices with advanced features, not incremental improvements, are what it’s going to take to compete the with iPhone and Pre, and soon, with the G2, the latest phone based on Google’s (GOOG) Android OS.</p>
<p>Consider this: <a href="http://blog.changewave.com/2009/07/soaring_demand_for_smart_phones.html">A recent ChangeWave survey</a> of over 4,000 respondents found that more than 14 percent plan to purchase a smartphone in the next 90 days. Of those, 44 percent said they plan to buy an iPhone, compared to 23 percent who said they&#8217;ll opt for a BlackBerry (click on chart below to enlarge).</p>
<p><a href="http://digitaldaily.allthingsd.com/files/2009/07/rim_apple_palm_future.gif" rel="lightbox"><img src="http://digitaldaily.allthingsd.com/files/2009/07/rim_apple_palm_future-250x138.gif" alt="rim_apple_palm_future" title="rim_apple_palm_future" width="250" height="138" class="aligncenter size-medium wp-image-21039" /></a></p>
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