GadgetCrave.com

Cable Companies to Offer “A La Carte”?

danseitz — Thu, 06 Oct 2011 14:11:30 +0000

This is a switch: cable companies, which for years have insisted on only selling large bundles of channels to consumers, are apparently gearing up to reduce the size of the bundles. Where years of consumer complaints and legal threats couldn’t move them, apparently more and more people ditching their cable as they decide they can live without 5000 channels and still nothing on, thanks, has convinced them that they need to actually offer the consumer some options.

Just not, you know, the options they actually want.

Here’s the main problem: cable companies want to make network selection more a la carte, but that runs contrary to what the networks have built their business models on. It works like this: cable companies pay a fee for each network they stream to a customer. That fee is usually a dollar. If that sounds a bit cheap, remember that there are millions of customers, and that the networks also sell advertising.

But all that depends on bundling; that is, you get the network whether you want it or not. A dirty secret of cable is that a lot of networks would die if it weren’t for bundling; simply put, nobody wants them. But they’re bundled…so they show up anyway.

The ideal situation is that the consumer goes through each channel and chooses whether they want it or not. But that’s not going to happen unless things change drastically. Instead, what’ll happen is that the bundles will be made smaller. Some companies have already been experimenting with this…much to the channel’s dismay.

What does this mean for you, the consumer? Mostly that, in the near future, you’ll have more options to buy channels you want and get rid of channels you don’t, and to do so for a decent cost, which is better than our current option. But it still won’t give the control you want. So…yeah.

Steve Jobs Dies at 56

danseitz — Thu, 06 Oct 2011 03:00:42 +0000

As you’ve no doubt heard, Steve Jobs, one of the driving forces at Apple and arguably the defining force of technology for the past decade, has died at 56. The cause of death has not been announced, but is likely due to complications from his pancreatic cancer.

We’ll leave the speculation about Apple’s future and other reporting to the other blogs on this: we simply want to take a moment to remember the man. In fact, your editor would like to put aside the magisterial voice for a moment and talk about how Steve Jobs’ vision has helped me achieve mine.

In my day-to-day life, I’m an independent filmmaker, with four films under my belt and a fifth currently in process. But none of it would have been possible without Apple, or Jobs’ unique insight into what people want.

Ten years ago, professional editing systems were incredibly expensive, well beyond the reach of a teenager who wanted to cut together his movies. One of Jobs’ ideas was to introduce video editing software to cater to low-budget filmmakers and students, as well as people who wanted to put together home movies.

I can’t tell you how crucial that’s been for me as an artist: the ability to use my own tools on my own time has been invaluable. I’ve owned a series of Macs over the course of a decade because of this, and because his products worked and were cost-effective.

And I know that’s a narrow niche: millions more bought iPods, billions more shopped at the iTunes Store, the iPhone and iPad were major hits that revolutionized, and in the case of the iPad, opened up their markets. Because of Apple, technology now is unrecognizable from what we thought it would be. But my point is: Jobs didn’t just come up with new products to sell. He enabled dreams, whether it was for low-budget filmmakers, or for musicians trying to get their songs out to a wider public, or for fine artists who needed imaging tools that suited their mindset.

Steve Jobs was many things, but how he saw technology has affected all of us, directly. I can think of no finer tribute than to acknowledge that, one way or another, this man has altered our lives.

Namaste, Mr. Jobs.

iPhone Announcement: It’s the iPhone 4S

danseitz — Tue, 04 Oct 2011 17:08:24 +0000

Well, that was disappointing.

OK, OK, so the event hasn’t officially kicked off yet: since everybody and their mom is liveblogging it, we won’t be covering it until after the announcement is over. But there have been a few leaks and apparently all that perfectly reasonable and intelligent speculation about the iPhone 5 has turned out to be premature.

So how do we know it’s the 4S? Japan!

The Japanese store has leaked some screenshots, and the Apple Store is down, so everybody pretty much has let out a big “Awwww, nuts!” and shuffled into the event anyway.

So, what should we expect from the 4S? Going by the previous revisions, expect:

More memory, probably a choice between 32 and 64GB. Previous revisions have always increased storage, so this will be no different.
More DRAM, naturally. If you’re storing more apps, and multi-tasking, you’re going to need more on-board memory to run them.
An incrementally faster processor. Each reiteration has gone up about 200 MHz, and this will probably feature an underclocked processor just like the rest.
Some types of the iPhone 4 and the remaining iPhone 3GS to be discontinued after today’s announcement. The one with less memory will soldier on, but the 3GS is dead meat by this afternoon.
The Sprint announcement, of course.

What shouldn’t we expect? Massive changes to the casing, the iPhone 5, or anything really revolutionary outside of the iPhone. Maybe we’ll hear a bit more about the iCloud, which is rapidly becoming a fascinating service. But, in general, expect it to be a relatively quiet event from Apple.

Oh, and we’re watching right now: Tim Cook is no Steve Jobs, but he’s an excellent presenter. Maybe if we’re nice he’ll prank call a Starbucks. Please, Tim? Pretty please? We’ll even dial the number for you!

Amazon Kindle Fire: the iPad Killer? Not So Fast.

danseitz — Wed, 28 Sep 2011 20:00:23 +0000

The Kindle Fire is a shockingly good product for a shockingly good price. For $200, you get a screen with a higher resolution than the iPad, with a dual-core processor and an Android OS. In other words, it’s a Nook, only $50 cheaper, and it will likely be a hacker’s delight. But for all the buzz, it’s not going to be able to tackle the iPad in any meaningful way. Here’s two reasons why.

It’s More An “Amazon Instant Access” Device Than An Actual Computer

Based off of BlackBerry’s PlayBook, which didn’t do so well, the Kindle Fire is largely designed to be an ereader/media streamer first and a computer second. For example, it’s not going to have an email client right out of the gate, and there’s no word on whether the web browser will be fully-featured enough to be useful.

We get that there have to be some tradeoffs, especially at a budget price of $199. But it’s still a little disappointing, and odd, especially since Amazon obviously wants to shoulder in on Apple’s action.

It’s Got Some Big, Nasty Walls Around It

Something that’s going to cause real problems for the Kindle Fire is the fact that it is, first and foremost, designed to traffic Amazon content and only Amazon content.

For example, if you want to use Netflix on your Kindle Fire…well…have fun hacking the OS, because Amazon isn’t going to let a competitor to its Prime streaming service anywhere near its tablet. This is probably going to be a deal breaker for many shoppers, especially since the competing Nook can have a microSD card slipped into its port and turned into a fully functional tablet.

It’s an odd strategy coming from Amazon, which had embraced other platforms before: for example, you can get the Kindle software for Android and iOS. We’re not sure it’s going to help it woo away would-be iPad shoppers.

But, we’re also sure that it’ll be hacked to be a fully functional tablet within hours of release. We’ll keep you posted.

How Safe Is Your Bluetooth?

danseitz — Tue, 27 Sep 2011 17:00:19 +0000

We all know them. Many of us kind of hate them. The Bluetooth headset, though, is a staple of modern life. Whether it’s something you need or something you want, millions of people have one plugged in their ear.

And it may be paving the way for their smartphone to be hacked.

A Finnish company bought a bunch of Bluetooth headsets and hands-free kits and subjected them to a “fuzzing” attack, basically sending the phone and headset intentionally crappy data. In many cases, it crashed the phone. That’s bad enough, but what’s worse is that the crash opened up the phone to reveal various possible routes to access it secretly, or to just throw malware onto the phone.

Oh, and thanks to the way Bluetooth is designed, you can have all this happen without your phone being paired to a specific Bluetooth device.

All this is thanks to Bluetooth’s security implementations, which are, obviously, pretty terrible. The manufacturers are working on a solution: these are white hat hackers, after all, and they want us to be safe. But in the mean time, take steps to protect yourself:

The most basic step is the simplest: hang up your headset for a while, if you use one. Ask yourself if it’s really necessary, or just a status symbol.
If you don’t use a headset, go into your phone’s settings menu and disable Bluetooth. This is a good idea anyway: you’re just offering an open channel into your phone for anybody who wants it by leaving it on.
Contact the manufacturer of your phone and your headset and see what they’re doing to patch this security hole. The harder you lean, the better the results.

We can’t protect our phones completely: they’re designed to send and receive data. But we can at least anticipate threats.

Blockbuster Is a Bust?

danseitz — Mon, 26 Sep 2011 19:47:13 +0000

So, Blockbuster, as we all know, had to go into bankruptcy after spending a decade posting quarter after quarter of losses, totaling over $10 billion, as Netflix and Redbox ate it alive. It was like watching a bad horror movie.

But, like a bad drama, Blockbuster had the chance to come back. Netflix has been reeling from the whole price rise and Qwikster debacle, and that left an opening for a streaming video service to step in and take a whole load of customers away. If it was going to happen, Friday was the day.

It didn’t happen.

The big problem with the “Stream Come True” and can we just say that that is a profoundly disgusting title for an event, is that it isn’t any sort of dream come true, for anybody. It’s just Netflix, only with a different name and the streaming options are, well, terrible.

For example, Netflix offers, with its streaming plan, approximately 10,000 movies, and just secured some major Hollywood content. In fact, it leapfrogged HBO in a big, big way by landing an exclusive deal with Dreamworks Animation. Blockbuster streaming, by contrast, offers…3000 movies.

Oh, and none of them are new releases. A lot of them are, in fact, available on Netflix.

Not that most people will care, since it’s only available to the 14 million Dish Network subscribers. Yes, they figured out a way to make this even less relevant: limit it to a subsection of the American populace for no explicable reason. We’re not really sure why this was put into effect: presumably it’s to allow further differentation of the service at a later date…but why wait? Why roll this out if it wasn’t ready?

In short, once again, Blockbuster has tripped over itself and handed Netflix a victory. And this one Netflix didn’t even ask for.

Government Asks: Is Google Evil?

danseitz — Thu, 22 Sep 2011 20:00:07 +0000

So, yesterday, in case you hadn’t heard, Google got dragged before the Senate to discuss its business model and the fact that it, de facto, controls the Internet. Some good points were made, some bad points were made, overall not much happened.

But it raises the point: is Google evil?

You can get a feel for the Senate’s read (yes) by looking over the transcripts, but our read, especially from the evidence presented, is a bit more complex. We’re not sure Google is deliberately evil, and we definitely disagree that Google is “cooking the books”, so to speak.

And honestly the complaints of Yelp and TripAdvisor, two companies with their own problems involving information sharing and scrubbing, aren’t even worth considering. Yelp in particular is under legal fire for practices about a thousand times less savory than abusing fair use laws, amounting to extorting advertising sales in order for businesses to keep their good reviews. It’s nothing more than whining, and the Senate shouldn’t have let them in the room.

Nor do we think Google is deliberately pushing their services over others. The author has used Google services like Google Maps, Google Plus, Google Scholar, and so on extensively: I’ve never been asked to use another Google service over another I prefer. A de facto test throwing in a few locations and random terms in search offered Google results only on the third or fourth result; some didn’t even yield anything from Google.

The issue is really a matter of size. Google points out, rightly, that it’s not a monopoly. If you don’t want to use any service Google offers, you’ve got at least two or three, and usually more, alternatives. Even Google’s core businesses, like search, has major competition like Bing.

But Google is a giant standing in a field of fragile glass flowers: no matter how carefully and thoughtfully it places its feet, it’s likely to crush something. Every time Google revises its search algorithm, someone gets burned, for example.

In short, Google isn’t evil: it’s just too big to not hurt somebody when it makes a move.

iPhone 5: October 4th?

danseitz — Wed, 21 Sep 2011 20:00:13 +0000

Every year it happens. We wait with bated breath for the fall, when the new iPhone arrives and makes everybody curse their old iPhones for the now dated pieces of crap that they are. But even for Apple, it’s been unusually closed-lipped this year about the new iPhone’s debut. We know one is coming, thanks to enormous numbers of leaks from Sprint, and we know Apple always refreshes its products once a year. But we didn’t have a date.

That is, until now.

Yep, October 4th is the big day. Apple, of course, is not calling this “new iPhone day”, but rather a “special media event.” You know, code for “big iPhone day!”

Sadly, by all accounts, the release window for the new hotness will not be until late October at the earliest, so even after you know what you’ll be getting, you’ll have to wait. Interest is high, however, especially since with its arrival on Sprint, the iPhone is now on every major national carrier except T-Mobile.

It also probably will be debuting much more than just the new iPhone. The iPad 3 is waiting in the wings, for example, and Apple also has its cloud services ready to go. And, of course, there may be still other products.

The final point of interest: this will be the first product rollout presided over by Apple’s new CEO, Tim Cook. Steve Jobs recently stepped away from day-to-day business at Apple for health reasons, although he’ll still be assisting with product design and working closely with the company. So Cook is out there on his own. Likely other parts of the presentation will be handled by key executives like Phil Schiller, but this is the Tim Cook show.

Break a leg, Tim. Oh, and let’s get that iPhone out sooner rather than later, OK?

Meet The Best Driverless Car Yet

danseitz — Tue, 20 Sep 2011 20:40:07 +0000

It’s been a dream of science fiction for decades: a car where you just climb in and the computer takes care of the rest. It’s more than just neat: most accidents are caused by human error, so take the human out of the equation, and cars suddenly become much, much safer.

But what does it take to make the safest self-driving car? About $500,000 worth of gear.

Researchers at Berlin’s Free University have been outfitting and testing a Volkswagen Passat to drive itself for four years now. Among the gear it’s toting:

A complex computer system and satellite navigation system, of course.
A high resolution camera on the front of the car, to spot traffic and traffic signals.
Laser range finders on the roof and in both the front and back bumpers.

Part of the cost is simple trial and error: self-driving cars obviously need a lot of testing and fine-tuning. But the results are fairly stunning. The car has been driving around Berlin on its own, with special permission, and it’s been performing swimmingly.

So, when can you climb in your car, tell it where you want to go, and catch a nap? Well…probably not for another 30 or 40 years, alas. The problems are twofold. First of all, the cost of the technology: it has to be made to be much cheaper while still being just as effective and safe. That’s a tricky proposition.

Then there’s the small matter of the law. For example: what happens when a car driving itself crashes? Is the owner of the car liable for the damages? Is the company that made the self-driving system liable? The car maker? Who?

Still, the research isn’t going to stop, and you will see benefits: many self-driving car designs make their way to consumers as safety systems. So, while you may not be able to leave the driving to JohnnyCab, you can at least drive comfortably knowing robots have your back.

Mind-Controlled Robot Arm? For 1/4th the Price?

What the Heck is Qwikster?

danseitz — Tue, 20 Sep 2011 13:08:33 +0000

It’s Netflix, only for DVDs. But wait, don’t we already have Netflix for DVDs? We do. It’s becoming Qwikster. Confused? You’re not the only one. But the explanation is pretty simple.

Reed Hastings, the CEO of Netflix, sent an apology to his customers last night that also happened to be an enormous double announcement. First, he said that the DVD-mailing side of the business was being turned into Qwikster, while the streaming side would remain Netflix. Meanwhile, Qwikster would start renting out video games.

But why is Netflix doing this? Well, there are a couple of reasons.

First, mailing DVDs isn’t as profitable as streaming. It’s still profitable; Netflix rakes in millions every month and is one of the most highly valued companies on the NYSE. But there are some serious problems facing mailing DVDs to customers as a business model.

First and foremost? The Post Office is dying. One way or the other, postal service is going to decrease as cost-saving measures are implemented, which means Netflix can’t guarantee prompt delivery of DVDs…which in turn means it may lose customers as they weigh the cost of the service against what they get. Netflix is finding itself struggling with Redbox’s rental kiosks, which can be placed pretty much anywhere and can arguably serve rural areas with weaker Internet access much better, at a price of $1 per movie.

Secondly, DVD as a format isn’t doing so hot, either. People are still buying movies and renting them, but streaming is a much more successful business, and more convenient.

In short, Netflix is bracing for the inevitable: one way or the other, its mail service is going to start taking some serious hits in the near future. So, they’re getting ready to take those shots while continuing its core service. The next two years will be interesting for the world’s biggest video streaming company, to say the least.

Is RIM In Trouble?

danseitz — Fri, 16 Sep 2011 20:00:04 +0000

RIM has been struggling for years, ever since Apple introduced the iPhone and became a major player in a market the BlackBerry had had all to itself for nearly a decade. Then Google introduced the Android OS, and things got worse pretty quick.

Now, they’ve released their latest financial results, and things do not look good at all.

We’ll give you the full press release in a moment, but the key things to take away are that RIM’s revenue is off by a whopping ten percent, and that they’ve managed to sell only 200,000 Playbooks. Both are bad news, but the latter is worse because it indicates RIM’s attempt to make a corporate tablet are not working. Their Nortel acquisition might help them, but for now, they’re facing real trouble.

Here’s the full press release:

September 15, 2011
FOR IMMEDIATE RELEASE
RESEARCH IN MOTION REPORTS SECOND QUARTER FISCAL 2012
RESULTS
Waterloo, ON – Research In Motion Limited (RIM) (Nasdaq: RIMM; TSX: RIM), a world leader in the
mobile communications market, today reported second quarter results for the three months ended August
27, 2011 (all figures in U.S. dollars and U.S. GAAP, except where otherwise indicated).
Highlights:
 Revenue in the second quarter was $4.2 billion and service revenue surpassed $1 billion for the
first time
 GAAP net income of $329 million or $0.63 per fully diluted share; adjusted net income of $419
million or $0.80 per fully diluted share
 The BlackBerry subscriber base grew 40% year over year to surpass 70 million
 RIM’s largest roll-out of BlackBerry smartphones was initiated with 7 new smartphones
launched with over 90 carrier and distribution partners in 30 countries during the latter part of
Q2
 Approximately $780 million was invested as part of a consortium of companies that successfully
bid to acquire intellectual property assets from Nortel
 BlackBerry smartphone shipments in Q3 are estimated to grow between 27-37% over Q2
shipments
Q2 Results:
Revenue for the second quarter of fiscal 2012 was $4.2 billion, down 15% from $4.9 billion in the
previous quarter and down 10% from $4.6 billion in the same quarter of last year. The revenue breakdown
for the quarter was approximately 73% for hardware, 24% for service, and 3% for software and other
revenue. During the quarter, RIM shipped approximately 10.6 million BlackBerry smartphones and
approximately 200,000 BlackBerry PlayBook tablets.
“We successfully launched a range of BlackBerry 7 smartphones around the world during the latter part of
the second quarter and we are seeing strong sell-through and customer interest for these new products.
Overall unit shipments in the quarter were slightly below our forecast due to lower than expected demand
for older models,” said Jim Balsillie, Co-CEO at Research In Motion. “We will continue to build on the
success of the BlackBerry 7 launch to drive the business as we focus our development efforts on
delivering the next generation, QNX-based mobile platform next year.”
The Company’s GAAP net income for the quarter was $329 million, or $0.63 per share diluted, compared
with GAAP net income of $695 million, or $1.33 per share diluted, in the prior quarter and net income of
$797 million, or $1.46 per share diluted, in the same quarter last year. Adjusted net income for the
second quarter was $419 million, or $0.80 per share diluted. Adjusted net income and adjusted diluted
earnings per share exclude the impact of a pre-tax one-time charge of $118 million for the Company’s cost
optimization program that was implemented in the second quarter of fiscal 2012. Details on the cost
optimization program are available in the Company’s press release dated July 25, 2011 as well as in
Management’s Discussion and Analysis of Financial Condition and Results of Operations for the fiscal
period ended August 27, 2011, which will be filed shortly. This charge and its related impacts on net
income and diluted EPS are summarized in the table below. Net Income Diluted EPS
As reported 329 $ 0.63 $
Adjustment:
Cost optimization program, net of income tax
(1)
0.17 90
Adjusted 419 $ 0.80 $
Reconciliation of GAAP net income to adjusted net income
For the quarter ended
August 27, 2011
Note: Adjusted net income and adjusted diluted earnings per share do not have any standardized meaning prescribed
by GAAP and thus are not comparable to similarly titled measures presented by other issuers. The Company believes
that the presentation of adjusted net income and adjusted diluted earnings per share enables the Company and its
shareholders to better assess RIM’s operating results relative to its operating results in prior periods and improves the
comparability of the information presented. Investors should consider these non-GAAP financial measures in the
context of RIM’s GAAP results.
(1) During the second quarter of fiscal 2012, the Company implemented a cost optimization program to streamline
operations across the organization. The Company incurred approximately $118 million in total pre-tax charges related
to the cost optimization program. Substantially all the pre-tax charges are related to one-time employee termination
benefits and the identification and elimination of redundant facilities, with the charges included in the relevant line
items in the Company’s consolidated statement of operations. During the second quarter of fiscal 2012 pre-tax charges
of approximately $13 million were included in cost of sales, charges of approximately $19 million were included in
research and development, and charges of approximately $86 million were included in selling, marketing and
administration expenses. Additional charges for headcount related costs associated with our cost optimization program
may also be incurred in subsequent quarters.
(United States dollars, in millions except per share data)
The total of cash, cash equivalents, short-term and long-term investments was $1.4 billion as at August 27,
2011, compared to $2.9 billion at the end of the previous quarter, a decrease of $1.5 billion from the prior
quarter. Uses of cash included strategic purchases of intellectual property assets associated with RIM’s
participation in a consortium of companies that successfully bid to acquire Nortel Networks Corporation’s
patent portfolio, of which RIM’s cost is approximately $780 million, capital expenditures of
approximately $285 million, and working capital requirements.
Q3 and FY2012 Outlook
Revenue for the third quarter of fiscal 2012 ending November 26, 2011 is expected to be in the range of
$5.3-$5.6 billion. Gross margin percentage for the third quarter is expected to be approximately 37%.
BlackBerry smartphone shipments are expected to be between 13.5 million and 14.5 million units.
Adjusted earnings per share for the third quarter, excluding the impact of charges related to the
Company’s cost optimization program, is expected to be in the range of $1.20-$1.40. Adjusted diluted
earnings per share for the full year fiscal 2012, excluding the impact of charges related to the Company’s
cost optimization program, is expected to be towards the low end of the previously guided range of $5.25-
$6.00. Conference Call and Webcast
A conference call and live webcast will be held beginning at 5 pm ET, September 15, 2011, which can be
accessed by dialing 1-877-974-0445 (North America), (+1)416-644-3414 (outside North America) or
through your personal computer or BlackBerry® PlayBook™ tablet at
www.rim.com/investors/events/index.shtml. A replay of the conference call will also be available at
approximately 7 pm ET by dialing (+1)416-640-1917 and entering passcode 4466490#. A replay of the
webcast will be available on your personal computer or BlackBerry PlayBook tablet by clicking the link
above. This replay will be available until midnight ET, September 29, 2011.
About Research In Motion
Research In Motion (RIM), a global leader in wireless innovation, revolutionized the mobile industry with
the introduction of the BlackBerry® solution in 1999. Today, BlackBerry products and services are used
by millions of customers around the world to stay connected to the people and content that matter most
throughout their day. Founded in 1984 and based in Waterloo, Ontario, RIM operates offices in North
America, Europe, Asia Pacific and Latin America. RIM is listed on the NASDAQ Stock Market
(NASDAQ: RIMM) and the Toronto Stock Exchange (TSX: RIM). For more information, visit
www.rim.com or www.blackberry.com.

Fewer People Subscribing to Netflix?

danseitz — Thu, 15 Sep 2011 20:00:48 +0000

Netflix, in a move that was controversial to the Internet and absolutely no one else, recently changed its subscriber plan: if you wanted both DVDs sent to your house and streaming, it would now cost a minimum of $16. There was a lot of wailing, teeth gnashing, and predictions that Netflix had just priced itself out of most people’s wallets, even though a DVD-only and streaming only plan were available at $8 each.

So, how did it work out?

Well, not bad, but not great, either. Netflix had projected it’d have 22 million streaming subscribers and 15 million DVD subscribers in late July. The numbers it’s projecting now? 21.8 million streaming subscribers and 14.2 DVD subscribers. That may not sound like much, but taken together, that’s a projected loss of at least $96 million in income a year. That’s not really a number any business owner likes to see, even a company making as much of a fortune as Netflix.

Yeah, they lost nearly a million customers, although it’s not clear that the price raise was entirely to blame: a lot of people are tightening their belts due to the bad economy, and that may be a factor. Also a factor: the recent loss of their contract with the Starz network, which has stopped viewing Netflix as a revenue stream and starting viewing it as a serious competitor to its core cable TV business.

But it’s also hardly “The End of Netflix” as so many tech blogs on the Internet were inferring after the raise was announced. Combined, it’s still raking in hundreds of millions in revenue, every single month, which means it’s still incredibly appealing to Wall Street…and still worth far more than the movie studios desperate to keep Netflix from controlling the entire home video industry.

Yeah, good luck, guys. You’re going to need a lot of it.

GadgetCrave.com

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