Insiders Suggest Sprint Planning to End Deal with Falcone’s LightSquared

  • Sprint had an agreement with LightSquared to build and operate its national wireless network for 11 years. In return, LightSquared agreed to pay Sprint $9 billion and another $4.5 billion in service credits.
  • However, according to two sources familiar with the project, Sprint could be quitting the partnership as billionaire Philip Falcone’s LightSquared gets hung up with the FCC.
  • Concerned over interference with global-positioning systems, the FCC said it would block LightSquared’s wireless venture. While the company looks for a resolution, Sprint’s activities have been on hold.
  • Sprint received an advanced payment of $310 million for start up costs and it will keep about $236 million if the partnership falls through.

Partnership Exclusive: Will Netflix be Offered as an On-Demand Option?

  • Netflix is reportedly in discussions with cable companies to consider adding the service as a cable TV on-demand option, reports Reuters.
  • Partnering with cable TV providers rather than competing with them via cord cutting would represent a key move for Netflix.
  • CEO Reed Hastings has pointed out that cable TV providers are looking for a competitor to HBO.
  • “At least one cable company could end up experimenting with offering Netflix by the end of the year, even though the company would have to modify its content licensing deals, which currently typically don’t allow Netflix to bring programming to cable set-top boxes,” adds The Hollywood Reporter.
  • A deal like this, with pay TV distributors, could help Netflix with survival as it struggles somewhat, “but would force the company to reduce its terminal revenue opportunity by sharing average revenue per user with [distributors],” explains analyst Tony Wible of Janney Montgomery Scott.

Infographic Highlights Emerging Trends and Outlook for Mobile Commerce

  • Online retailer CultureLabel offers a compelling infographic that illustrates the mobile commerce industry outlook, noting in particular the massive growth of smartphone adoption.
  • According to the statistics, 87 percent of the world’s population currently has mobile phones, while smartphone sales have risen 63.1 percent from 2010.
  • About a third of cell phone users spend 27 minutes on communication (Skype, telephone, SMS) and over half of consumers spend 40 minutes per day on the Web.
  • Social networking accounted for an impressive 50 percent of all page views last year.
  • CultureLabel notes that 71 percent of mobile searches occur as follow-up to advertisements from TV, online or print ads — and 90 percent of searches result in action such as a purchase or store visit.
  • Mobile commerce is estimated to see a 99 fold increase in six years (from 2009 to 2015). By 2015, mobile Web surfing is expected to overtake desktop Web use.

Will New Samsung Galaxy Pocket Compete with the Nokia Lumia?

  • Listed at $140, the new Galaxy Pocket from Samsung could be sold for as little as $20 or $30 with a two year contract.
  • It runs Android 2.3 Gingerbread, has an 832 MHz processor, 2-megapixel rear camera and 320 x 240 resolution for its 2.8-inch display.
  • The Pocket is likely a response to Nokia’s less expensive Lumia brand that runs Windows Phone OS.
  • “For the Galaxy Pocket to truly compete with that, it would need a bit more power under the hood,” TG Daily writes, “although if it does manage to strike a free-phone deal with a major carrier in the U.S., it could be a significant growth opportunity not only for Samsung but for the entire Android platform as a whole.”

Positive Reviews for New iPad: Are We Heading Toward a Post-PC Revolution?

  • “It’s sort of funny that the only major thing those in the rumor business got wrong was the name of the new iPad,” reports TechCrunch. “It’s not the previously presumed ‘iPad 3,’ nor is it the ‘iPad HD.’ It’s just the iPad. And that’s what it will be from now on.”
  • During yesterday’s Apple event, CEO Tim Cook emphasized the “Post-PC Revolution,” noting that Apple has sold 315 iOS devices.
  • Last quarter, Apple sold 15.4 million iPads. This was more than any PC manufacturer sold of their entire PC line worldwide: HP — 15.1 million PCs, Lenovo — 13 million, Dell — 11.9 million, Acer — 9.8 million.
  • TechCrunch offers a positive review of the company’s new tablet. The new iPad’s display “makes everything look like a printed photograph.” It seems fast. The 4G LTE will be faster than many broadband connections. The camera is “much, much, much, much, much better.” And iPhoto will be fun to use.
  • “You’re going to see a lot more of this type of innovation,” Tim Cook said. “We’re just getting started.”
  • In a related first impressions post: “When I pulled up a nice, high resolution photograph on the iPad 3rd-gen, I genuinely could not tell the difference between what I was seeing onscreen, and a nice, beautifully shot, well-printed, glossy photograph. It was seriously to that level,” comments Ryan Block, co-founder of gdgt.

Apple Unveils New iPad Featuring Retina Display, A5X CPU and 4G LTE

  • Apple introduced the third generation of its iPad yesterday.
  • The new 9.7-inch Retina display boasts 3.1 million pixels and improved color saturation. The tablet is outfitted with an A5X processor and quad-core graphics chip.
  • Similar to the new camera in the iPhone 4S, the new iPad has a 5-megapixel iSight camera capable of shooting 1080p video.
  • Available for LTE, the new software also enables the iPad to be used as a portable Wi-Fi hotspot.
  • Although Siri isn’t fully integrated, a new voice-dictation feature is included, allowing consumers to speak instead of type.
  • “The new iPad will be available March 16th, starting at $499 for the 16GB WiFi model and scaling up to $829 for the 64GB version with 4G,” reports Engadget.

NPD Report Indicates Number of Music Buyers Increased in 2011

  • Music sales were up 14 percent for 2011 over the previous year, while the number of music buyers also increased 2 percent.
  • NPD reports 78 million Americans purchased music in 2011, marking the second consecutive year that the number has increased.
  • The report indicates that CD sales continue to decline, but some 45 million music fans opted for digital downloads via iTunes and Amazon, up 14 percent from 2010.
  • “Given that it’s easier than ever to listen to free music, legally, via streaming options like Pandora and Spotify, the fact that paid downloads are up is a little counterintuitive,” notes AllThingsD. “But that’s always been part of the streaming music service pitch to the big labels: Let us give away your stuff, and we’ll help increase demand — just like radio used to do.”

Will Adult Entertainment Virtual Convention Serve as Model for Future Events?

  • The adult entertainment industry recently debuted its first ever convention held entirely in a virtual environment.
  • The Adult Entertainment Virtual Convention (AEVC) “brought a worldwide audience of industry professionals, fans and business owners together; and featured seminars, speaker panels, business-to-business networking along with exhibitors showcasing their products via virtual booths. The convention also tickled fan curiosity with adult star meet-and-greets and live cam sessions,” according to a press release posted via SFGate.
  • “It was topped off with an exciting Virtual Awards Show that bestowed winners in various categories of both real and virtual realms,” adds the release.
  • The event may serve as a model for similar approaches from other industries.
  • “The acceptance for the concept of an all-virtual convention was marked by the 8,000 recorded attendees, all of whom logged in online to pass through the virtual doors over the span of the three-day event,” notes the release. “The adult entertainment industry has always been a pioneer of technology, so it may not be long before we see other kinds of businesses experimenting with conventions on a virtual platform.”

Jumptap Data Suggests Kindle Fire Jumps to One-Third of Tablet Traffic

  • Mobile ad provider Jumptap found that the Kindle Fire accounted for 33 percent of tablet traffic in January, rising from 20 percent in December and only 4 percent at its launch in November.
  • The Kindle Fire has cut into the iPad’s traffic, which dropped to 48 percent in January from 65 percent in November. However, with the new iPad launch likely, it is expected that iOS will see a boost in traffic.
  • The study also found that overall tablet traffic has increased about 50 percent monthly since November, when the Kindle Fire launched.
  • “Jumptap derives its MobileSTAT data by tracking the advertising that appears on its mobile network, which reaches 95 million users in the U.S. and 21,000 apps and websites,” reports GigaOM. “The ad network also found that Android and iOS represent 91 percent of the mobile OS market, with Android enjoying 58.8 percent of mobile market share while iOS follows with 32.2 percent.”

Survey Suggests iPad 3 to be Purchased by One-Third of Mobile Users

  • With Apple expected to announce its much-anticipated iPad 3 today, a survey of mobile users reports that 29 percent plan to purchase the new tablet.
  • According to independent mobile ad network inMobi, of that number, 54 percent have never purchased a tablet before.
  • Nearly two-thirds of those wanting an iPad 3 said they would also consider an older device at a cheaper price, and almost half of the entire group reported no interest in a non-iPad tablet.
  • Initial rumors indicate the iPad 3 “will be slightly thicker and will include a higher-resolution Retina Display, better cameras, and the inclusion of LTE 4G chips,” reports VentureBeat. “Other rumors suggest that the unit will offer a new quad-core A6 processor to replace the iPad 2′s dual-core A5 chip, which will make processing high-end games and apps much smoother.”
  • The three most sought after features specified by survey respondents: “faster processor speed, better battery life, and higher-quality screen.”

Forrester Report: iPad Controls Tablet Market Share Over Android Rivals

  • Apple holds 73 percent of the tablet market with the second largest competitor, HP, only claiming 6 percent of the market. Third place goes to Samsung with 5 percent, followed by Motorola and Acer with 4 percent and 3 percent shares, respectively.
  • Forrester analyst Sarah Rotman Epps wrote that Android tablets have been priced near iPads, but have inconsistent branding. Amazon and Nook have at least expanded upon the platform, building features on top of Android.
  • “Tablets are about services,” Epps told Bloomberg in a telephone interview. “That is where Amazon has succeeded where others have failed.”
  • Epps also says the tablet market is growing much faster than anyone expected.
  • “About one-third of the U.S. adult population will own a tablet by 2016, as more people bring them to their workplaces, according to Forrester,” Bloomberg reports. “The majority of tablets used for work are paid for by the employee, the research company also said.”

Disc-to-Digital: Warner Home Entertainment Sending DVDs to the Cloud

  • Warner Home Entertainment’s “disc-to-digital” initiative will allow people to convert their DVDs into digital files stored and played back from the cloud.
  • People will be able to take their DVDs to a store that will process the digital conversion. Later, Internet retailers will email copies of DVDs purchased from them. Finally, future hardware will upload a digital copy for consumers.
  • Warner Home Entertainment Group President Kevin Tsujihara discussed the new initiative last week at Morgan Stanley’s tech, media and telecom conference in San Francisco.
  • There will be an option to get an HD version for an additional fee, although cost for the service was not specified.
  • “Persuading consumers to keep buying movies and building collections in the digital age is crucial to the bottom line of Warner Bros. and Hollywood’s other major studios, Tsujihara said. Sales are 20 to 30 times more profitable than low-cost rentals from Redbox or Netflix,” reports the Los Angeles Times.

Google Retires the Android Market Name: Recasts as Google Play

  • The Android Market will now be called the Google Play Store as Google attempts to “make it clearer to consumers that Google offers a broad catalog of content in addition to the apps programmed for smartphones and tablets based on its Android operating system,” Reuters reports.
  • Google Play, which launched on Tuesday, is described by The New York Times as “a one-stop-shop for all of Google’s software services and applications.”
  • Google has been expanding its Android offerings to include digital books, music and videos to better compete with Apple and Amazon. These offerings were available through many different sites and the apps all had different names, adding to the overall confusion in dealing with the Android Market.
  • With the rebranding, Google will rename their media applications to feature “Play.”
  • Updates will start rolling out to Android devices in the coming weeks, but “the Web hub, which all Google users can access, will be open to the public and available for browsing immediately,” reports The New York Times.

Mobile Devices Enabling New Economies: Tablets to Outsell PCs in 2013

  • A post on research-based blog Asymco shows some trends in technology that suggest tablets may outsell PCs by the third quarter of next year.
  • Some of the speculations include: the annual sales growth of the iPad will double this year as well as next; Android sales will have 80 percent growth each year; and “Windows 8 tablets will account for 7 percent of all Windows PCs in the final quarter of 2012, jumping to 20 percent by 2013,” GigaOM reports.
  • “Tablet hardware is improving quickly, which brings software innovation as app developers take advantage of more processing power and graphics capabilities,” the article states.
  • “Input on tablets can be a challenge, but one look at the Asus Transformer Prime and its keyboard dock offers a glimpse of current and future solutions. Remote desktop solutions abound, and some, such as OnLive, don’t even require you to have your own PC; you simply connect to one in the cloud.”

Shutterfly to Purchase Kodak Photo Gallery Service for $24 Million

  • As Kodak sheds most of its businesses to focus on enterprise services and desktop printers, it is looking to sell its online picture service Photo Gallery.
  • Although the deal has not been officially finalized, Shutterfly will likely acquire the division, offering $23.8 million.
  • “The agreement comprises the initial, stalking horse bid in a Court-supervised auction process under Section 363 of the U.S. Bankruptcy Code that will ensure the maximization of value for the assets,” the press release states.
  • “Under the current agreement, current Gallery customers uncomfortable with being shipped off to Shutterfly will be able to opt out and either download their stored pics or buy them on DVDs. Otherwise, their accounts will be transferred in a way that is ‘preserved, and protected’ — that is to say, almost entirely unlike the way they’re handled on iOS and Android,” comments Engadget.