An association of privacy groups, led by the Washington-based Electronic Privacy Information Center, has asked for a federal investigation into Facebook features that broadcast new information about users. The new partnerships with media platforms allow Facebook to acquire extensive data about user behavior.
“That information could also be made available to marketing companies for use in focusing advertisements, and potentially to government agencies interested in tracking people’s behavior,” suggests The New York Times.
In a letter to the Federal Trade Commission, privacy advocates wrote, “frictionless sharing creates several privacy and security problems for users.”
Facebook responded by explaining its users have more control than what is being suggested. “Some groups believe people shouldn’t have the option to easily share the songs they are listening to or other content with their friends,” company spokesman Andrew Noyes communicated via e-mail. “We couldn’t disagree more and have built a system that people can choose to use, and we hope people will give it a try. If not, they can simply continue listening and reading as they always have.”
According to the article, “the FTC does not comment on whether it is investigating any company unless it has some results to release.”
Social startup Tout offers a Twitter-like microblogging service, but enables users to publish 15-second video clips instead of 140-character text fragments.
“In other words, now anyone can be famous for 15 seconds,” suggests San Jose Mercury News.
When asked how it’s different from the Facebook feature that lets users post video chats, CEO Michael Downing explained the “abbreviated and near-instant nature of ‘touts’ makes them like mini-conversations.”
Endorsements from high-profile users such as Shaquille O’Neal, Mitt Romney and ESPN are helping the service build momentum.
O’Neal is one of many celebrities who have taken to communicating via Twitter (he currently has more than 4 million followers). “But what I’ve been noticing about Twitter lately is that you don’t know who the person you’re talking to really is,” he said. “When you can see my picture, you know it’s me.” O’Neal is so impressed with Tout that he took an ownership stake.
Since launching in mid-April, the San Francisco-based startup has attracted 4 million unique visitors. “It took Twitter two years to hit 1 million visitors,” explains Downing. “We hit it in under 12 weeks.”
Twitter’s 200 million tweets per day are being analyzed to monitor political activity and employee morale, track flu outbreaks and food poisonings, map changes in moods around the world, predict box-office success or failure for new movies, and predict changes in the stock market.
Hewlett-Packard’s Social Computing Laboratory used Twitter to successfully forecast the box office of 24 films by analyzing “the intensity of the word-of-mouth” about them on Twitter. They are now looking at doing the same for other products.
The Twitter users are younger adults, more urban and less likely to have children, but there is enough diversity to make judgements from the Twitter’s 200 million user stream.
Twitter is also being used to manipulate public opinion. “Twitterbots” have been created to automatically generate messages and thereby attract large followings by building relationships with unsuspecting users.
“Network sociologists are worried that these newest contrivances may offer others a powerful way to manipulate people through Twitter on an even larger scale,” reports The Wall Street Journal. “Doing this on Twitter with a thousand accounts or a million accounts is the next step,” said Indiana University computer scientist Jacob Ratkiewicz.
Rob Wiesenthal, chief financial officer of Sony America and chief strategy officer of Sony Entertainment, says TVs will get access to video content through tablets which would enable, for example, Sony’s Video Unlimited subscribers to go to a friend’s house and “throw” a film to the TV set.
“If you think back five years, it was all about the boxes; Tivo, Slingbox, Roku,” he said. “I think consumers really had box exhaustion.” Apple’s AirPlay, for example, allows iPads and iPhones to wirelessly connect to TVs.
Sony is using the Digital Living Network Alliance standard to interoperate with different manufacturer’ devices without the need for a box.
“Other benefits include the lure of offering more targeted advertising through an IP-enabled tablet than has proved possible through set-top boxes, and the advantages of finding content on a tablet rather than by aiming a remote control at a TV 10 feet away,” reports Financial Times.
In order for this approach to work, however, home Wi-Fi networks will require the capacity to transfer large video files without interruptions and cable providers will need to be willing to make content available this way.
The weak economy is leading cable operators to reverse their opposition to so-called “a la carte” programming. Comcast and Time Warner have lost 1.2 million customers in the last 12 months.
Programming costs have risen 6-10 percent annually over the last decade. And the fear is that it will continue as they see ESPN, for example, sign a $15 billion, 8-year deal with the NFL. Cable and satellite operators are also now paying to retransmit local broadcast channels.
“There is a growing recognition that the current model is broken,” says Craig Moffett, cable analyst at Bernstein Research. He expects smaller, less costly programming packages to emerge as Time Warner is doing with its TV Essentials pack.
“The specter of unbundled programming is likely to encounter fierce resistance from network owners such as Viacom Inc or Discovery Communications Inc, which are keen to maintain the economics of selling their most popular channels as a package with their smaller, nascent networks,” reports Reuters.
“People who are upset that Facebook is storing all their information should be really concerned that their cell phone is tracking them everywhere they’ve been… The government has this information because it wants to engage in surveillance,” an ACLU staff attorney said.
A newly released Justice Department internal memo reveals the retention policies of Verizon, T-Mobile, AT&T, and Sprint.
Verizon seems the most privacy-friendly, but is the only company that retains text message content. Messages are stored for 5 days; other companies don’t retain message content at all.
The retention of “cell-site data” (information of a phone’s movement history based on phone tower usage) varied the most among the four providers.
“Verizon keeps that data on a one-year rolling basis; T-Mobile for ‘a year or more;’ Sprint up to two years, and AT&T indefinitely, from July 2008,” reports Gizmodo.
Senator Patrick Leahy proposed to alter the Electronic Privacy Communications Act to “protect Americans from warrantless intrusions.”
To see your provider’s retention policy, check out the graphic featured in the Gizmodo post.
Chris Espinosa, a longtime Apple employee, gives his impression of Amazon’s Silk and Kindle Fire announcements.
“Amazon will capture and control every Web transaction performed by Fire users. Every page they see, every link they follow, every click they make, every ad they see is going to be intermediated by one of the largest server farms on the planet,” Espinosa writes in his blog. “People who cringe at the data-mining implications of the Facebook Timeline ought to be just floored by the magnitude of Amazon’s opportunity here.”
“Amazon now has what every storefront lusts for: the knowledge of what other stores your customers are shopping in and what prices they’re being offered there. What’s more, Amazon is getting this not by expensive, proactive scraping the Web, like Google has to do; they’re getting it passively by offering a simple caching service, and letting Fire users do the hard work of crawling the Web,” he adds. “In essence the Fire user base is Amazon’s Mechanical Turk, scraping the Web for free and providing Amazon with the most valuable cache of user behavior in existence.”
“They use a back-revved version of Android, not Honeycomb; they don’t use Google’s Web browser; they can intermediate user click-through on Google search results so Google doesn’t see the actual user behavior. Google’s whole play of promoting Android in order to aggregate user behavior patterns to sell to advertisers is completely subverted by Amazon’s intermediation. Fire isn’t a noun, it’s a verb, and it’s what Amazon has done in the targeted direction of Google. This is the first shot in the new war for replacing the Internet with a privatized merchant data-aggregation network.”
Facebook Deals, which offered coupons for local businesses in Facebook users’ main news feeds, officially shut down on Sunday.
While some assume the shutdown suggests a failure, sources say that Facebook cut the program because of limited engineering resources the company wanted to place elsewhere.
“Groupon and rival LivingSocial are no doubt pointing to Facebook’s withdrawal as evidence that the business is harder to replicate than people previously thought,” reports All Things D.
Groupon and BuyWithMe have introduced technology that attempts to track consumer loyalty following their first voucher purchase. Other companies in this space, including Google, are ramping up their coupon platforms, creating mobile solutions that “will recognize when people are close to a deal and allow them to redeem it immediately,” suggests the article.
“Last week, Microsoft launched Bing Deals, which is aggregating deals from other major providers to help users browse, find and purchase them in one place,” according to All Things D. “Ironically, that site is being powered by The Dealmap, which Google acquired in August.”
Spotify has been drawing a great deal of media attention this week, more so than the growing number of other streaming music services.
Since the company announced its partnership with Facebook at the recent F8 event, Spotify has gained more than one million new users, despite the public outcry from those who question limiting the service’s signup to Facebook users only.
In response to concerns regarding Facebook’s media-sharing philosophy, Spotify released a new update that enables users to access the Facebook app without sharing their listening habits, reports Digital Trends. This may be good news for subscribers not happy with the recent announcement regarding Facebook integration — and could potentially serve as a model for how others offer access to services via social networking.
In related news from The Hollywood Reporter, Spotify recently released a radio feature in the U.S. that has long been available to European users. Radio will be accessible on the desktop client, but not on the Spotify mobile app. The add-on is reportedly in no way a Pandora killer, due mainly to its lack of mobility and attention to detail.
Additionally, Digital Trends reports that Spotify may be having a significant impact on music piracy. Illegal downloads in Sweden have reportedly dropped 25 percent since Spotify launched there in 2009. “Here in the U.S., Spotify isn’t the only option — and it may not even be the best, depending on user preference. Pandora, MOG, Rdio, Grooveshark — the list goes on,” indicates the article. “We don’t yet have numbers to show how these services are affecting music piracy in the U.S. But we’d put our money on them having a similar effect as Spotify is having in Sweden.”
As part of its New York press event yesterday that unveiled the Kindle Fire tablet and three new Kindle e-readers, Amazon announced Silk, a new Web browser powered by Amazon Web Services (AWS) and available exclusively on its new tablet.
Amazon Silk is an important part of the Kindle Fire pitch, and as a “split browser” exclusive to the tablet it “gets the heavy lifting done on its EC2 cloud servers and promises faster access as a result,” reports Engadget. “Dubbed Silk to represent an ‘invisible, yet incredibly strong connection,’ it takes advantage of Amazon’s existing speedy connections, and that so many sites are already hosted on its servers to speed up Web access.”
Amazon’s cloud-accelerated browser may have some technical implications. First, Amazon may release a Silk desktop browser. It’s reliance on Amazon’s EC2 infrastructure may cut off access to the Web for customers during outages. That said, if Amazon succeeds, it may push other browser developer such as Google, Apple and Microsoft to follow. Mozilla may have a difficult time doing the same.
From a privacy perspective, Amazon talks about learning from “aggregate traffic patterns,” but in reality each Kindle has its own Amazon ID. Thus, Amazon will be able to track your personal Web habits, buying patterns and media preferences in detail.
“Until the Kindle Fire ships, there are more questions than answers,” suggests ReadWriteWeb. “I’m eager to get hands on a Fire so I can test out Silk and see for myself how it works. I’m not yet concerned about the privacy issues, but I do think they bear watching. What do you think? Is the Silk model something you’re excited about, or is Amazon a middle-man you’d rather do without when browsing the Web?”
Amazon has unveiled the Kindle Fire — a 7-inch touch-screen, color, and Wi-Fi tablet with dual-core processor that will sell for $199. The new tablet was announced by chief exec Jeff Bezos at a press event yesterday in New York City.
The Android-based device will offer access to Amazon’s app store, books, streaming movies and TV shows. Moreover, the expectation is that it will increase sales for Amazon’s other merchandise. Fire is available for pre-ordering and will be available November 15.
“The online retailer is gambling it can succeed with its tablet where several other giants, including Hewlett-Packard Co. and BlackBerry maker Research In Motion Ltd., have so far failed,” reports The Wall Street Journal. “Unlike those companies, Amazon already has a vast library of digital content to sell and tens of millions of credit-card numbers.”
The article suggests that the Kindle Fire may have an advantage over other tablets that have attempted to take on the iPad: “Amazon’s library of digital content, which its tablet users can access. Customers can pay $79 a year for a service known as Amazon Prime, which gives them access to 11,000 movies and TV shows, as well as unlimited two-day shipping for physical goods purchased on Amazon.com. Amazon also sells single movies, TV shows and music songs, with a catalog that competes with that of Apple’s iTunes store.”
Amazon also introduced three new Kindle e-readers — a touch-screen 3G version for $149, a touch-screen Wi-Fi version for $99, and a non-touch-screen model for $79.
Amsterdam’s annual IBC event offered a number of potential TV game-changers earlier this month, suggests TVNewsCheck. These include cloud-based or service-oriented architecture (SOA) applications for capturing, producing, processing and distributing digital video and audio; IT-based playout (channel in a box) tools that could potentially make broadcast playout more affordable; and 3D technology likely to be deployed for the 2012 London Olympics.
Also on display were technologies “aimed at making 3D production more affordable and compatible with standard 2D operations.”
Cloud services were at the forefront since broadcasters are now challenged by having to support an increasing number of distribution platforms.
Vendors discussed the fundamental concerns about cloud-based architectures, “notably content security, access to content, collaboration, bandwidth and workflow continuity,” reports TVNewsCheck.
In a related article from GigaOM that analyzes shifts in traditional television, venture capitalist Habib Kairouz writes that the TV industry is poised for some significant changes due to a number of upcoming trends: TV anywhere and anytime will catch on; the rise of the Internet-connected TV and interactive programming; and personalized advertising.
The article suggests that content owners will benefit as MSOs, IPTV providers, and others compete with one another. MSO’s are hedging their bets by purchasing both traditional and interactive content, while TV manufacturers are looking to build Internet services into their low margin businesses. We should watch for new entrants to increase the disruption in this space.
Hollywood is moving to convert its previously-released blockbuster hits into 3D. James Cameron is spending a year and $18 million to convert “Titanic” to 3D; “Star Wars” and “Top Gun” are two others in production.
“Like a bunch of aging starlets, some older blockbusters are undergoing major cosmetic enhancement to prepare for their comebacks,” reports Los Angeles Times.
Disney recently spent $10 million on the 17-year-old animated feature “The Lion King,” whose surprising box office success during the last few weeks may lead to additional conversions.
“For studios, it’s easy to see why spending $10 million or so to render a beloved film in three dimensions holds appeal: There’s a built-in fan base,” suggests the article. “But there are risks too: As the number of 3D films in theaters has ballooned, American audiences have become more selective about which ones they deem worth the premium ticket prices.”
Software improvements have made 3D conversions less expensive and, as a result, makes the prospect more difficult for Hollywood to resist.
Yet despite its big-name public champions such as Cameron, George Lucas and Tony Scott, there are still those who remain skeptical. The 3D conversion “undercuts the quality of the film and the verisimilitude of the film,” believes Wheeler Winston Dixon, professor of film studies at the University of Nebraska-Lincoln. “It’s to re-direct it and destroy it. This is a poor idea artistically and a poor idea financially.”
Either way, the movement is underway and we should expect to see more 3D “makeovers” of older films in the near future.
Disney announced this week its AppMATes Mobile Application Toys that use a sensor on the bottom of each toy, which identifies the object to an iPad app (no cable or Bluetooth connection required) and creates a virtual play mat for exploration and games.
“The ‘Cars’ toys are meant to be driven across the top of an iPad, interacting with a downloadable ‘Cars 2’ Appmates app, which lets kids drive around courses, race and complete missions,” explains Engadget. “The app will be offered up as a free download through iTunes, and the cars will run $20 for a two-pack — the different toys unlock different features, according to Disney.”
“We have cracked the technology code in changing the way kids play with their toys,” said Sunny Lauridsen, director of digital toys for Disney Consumer Products. “Kids will always use toys to play out their favorite Disney stories, but Disney Appmates now allows them to include technology which has become a way of life for them through a beautifully rich app.”
According to the press release: “Each toy unlocks different features and content within the app specific to the character, allowing kids to come back over and over to enjoy an imaginative, open-ended play experience using the Appmates toys. Fans can download and test the app by simply using their fingers to drive a virtual car through the world, but the play experience is optimized to come to life with the Appmates toy vehicles.”
The toys will be available in October through the Apple Store, Apple Store online, Disney Stores, DisneyStore.com and national retailers.
Amazon is expected to announce its long-awaited Android tablet this morning at a press event in New York City.
The 7-inch backlit Kindle Fire is expected to launch by the second week of November, just in time for the holidays. “The iPad has many challengers, but analysts say Amazon’s could be different — it has a chance to be more than a wannabe,” reports The New York Times.
Amazon built its own custom version of Android, has included a streaming video service, and will feature the Amazon MP3 service and the Kindle bookstore.
In related news from The Hollywood Reporter, major magazine publishers — including Hearst, Conde Nast and Meredith — have signed deals to sell digital versions of their publications. One big holdout is Time Inc., but it’s being reported that a deal could be reached “hopefully by the end of the year.”
One publisher with an Amazon deal said: “You’ve got beauty and design with Apple, which we love. But with Amazon you have marketing, and ease of use. We’re very optimistic.”
Amazon’s terms seem to be similar to those offered by Apple. Publishers get 70 percent of Amazon sales while the retailer shares customer information with the publisher. But, the report notes that those numbers could fluctuate depending on the title and customer offer.
We’ll have more on this story following the press event…
