A recent study by EyeTrackshop showed that Apple’s iPhone 4S and iPad 2 “drew more glances and held people’s attention longer than Google Android devices from Amazon, HTC, Motorola and Samsung,” reports Forbes.
The study showed participants a picture of six smartphones and five tablets. EyeTrackshop’s software tracked where subjects’ eyes went, in what order and how long, using webcams.
“EyeTrackshop said the results equate to respondents dwelling on the iPhone 4S 42 percent longer than the other phones and on the iPad 138 percent longer than the other tablets.”
Additionally, a follow-up survey indicated that 40 percent found the iPhone most visually appealing; for tablets, 35 percent for the iPad; and disregarding price, 47 percent said they would buy the iPhone and 48 percent preferred the iPad to other tablets.
Hollywood studios are starting to use Facebook as a direct-to-consumer platform for streaming films, possibly cutting out services such as Hulu, Netflix and Amazon in the process.
Universal, Lionsgate and Warner Bros. have distributed some 45 films via the Social Cinema app from Milyoni (pronounced million-eye). “What Zynga is to social gaming, Milyoni is to social entertainment,” reads the company’s website.
Miramax and Paramount have used similar apps to offer movies for Facebook credits on fan pages.
Rentals based on credits are running the equivalent of $3-$5. Facebook draws a 30 percent cut of transaction revenues.
Ad Age Digital suggests the studios’ willingness to offer rentals via social network sites “may reflect their desire to foster competition among online distribution platforms,” adding, “Miramax CEO Mike Lang said that digital monopolies were a greater threat to the film industry than piracy and that his studio had been aware of the importance of a competitive marketplace when doing deals with Netflix and Hulu.”
There was a time when Apple was a consumer electronics company, Google was a search engine, Amazon was an online retailer and Facebook a place to connect with friends. Now each of these companies is growing into the space of the others as they compete for new and expanding markets in mobile, social and cloud services.
Amazon’s upcoming Kindle Fire tablet will compete directly with Apple’s iPad. Google+ has taken on Facebook. Android and iOS are direct competitors. And Facebook has been considering its own mobile phone while it also looks to offer content, advertising and retail services.
Fast Company analyzes the “future of the innovation economy” in this regard, with a particular emphasis on the inevitable war and its major players.
“Amazon, Apple, Facebook, and Google will not last forever,” the article suggests. “But despite this oncoming war, in which attacking one another becomes standard operating practice, their inevitable slide into irrelevancy likely won’t be at the hands of one of their fellow rivals. As always, the real future of tech belongs to some smart-ass kid in a Palo Alto garage.”
Amazon CFO Tom Szkutak is predicting record sales of the Kindle and Kindle Fire. However, the company also anticipates a lag in revenue after initial sales of the devices, as consumers get acquainted with their machines before purchasing content for them.
“Much of the profit from these products would come from digital purchases by consumers post-sale,” reports The Next Web.
“Once a customer has purchased a device, what else do they buy? We certainly have some data now that we didn’t have prior to the launch [of the ad-based Kindles]. Once the customer purchases the Kindle and are carrying around this massive selection at their fingertips, they buy more content,” said Szkutak.
In a related Geek.com post, it was noted that the Kindle Fire may become the best-selling Android tablet ever, as pre-orders continue to flood in.
Amazon is producing “millions more” tablets to match the demand that has overwhelmed the company since announcing the slate a month ago.
The Fire will sell for $199, possibly making it an attractive alternative to Apple’s iPad, which starts at $499.
Amazon announced it has expanded its trade-in program to include the Kindle and other e-readers.
A used Kindle is reportedly worth $25 to $135, and the customer will receive an Amazon gift card in exchange.
To help encourage trade-ins, the company is also offering free shipping.
“With the Kindle Touch and Kindle Fire on the horizon, I wouldn’t be surprised to see many e-reader owners take advantage of this program,” suggests TechCrunch. “Simply visit Amazon’s Trade-In page and enter in the name of your model.”
Looking for the flexibility and power of HTML5, Amazon has announced its new e-book format, Kindle Format 8 (KF8).
The new format will help take advantage of the richer features expected with its upcoming Android-powered, full-color Kindle Fire.
“HTML5 features such as CSS3 formatting, nested tables, SVG graphics, embedded fonts, and borders are all now supported,” reports Ars Technica. “The new format includes much richer layout options, including fixed layouts — essential for accurate reproduction of many children’s books — and panel-based layouts for comic books. Books can include sidebars and callouts, text overlaid on background images, boxes, drop caps, and more.”
KindleGen 2, the new KF8 publishing tool, is expected to be available soon.
Recent speculation has suggested that Apple will produce an “iPad mini” to compete with the $199 price tag of the Amazon Kindle Fire, but many analysts doubt the possibility.
For one, if Apple is looking to compete with the Kindle Fire — which it has already denounced as a threat — it would have to compete in price, not size. A recent study showed that two-thirds of consumers want 10-inch devices while only 9 percent want a 7-inch tablet.
“We expect Apple to maintain its premium price point on tablets,” wrote Forrester analyst Sarah Rotman Epps. “Apple will not allow Amazon to dictate the terms of competition — Apple makes its own rules.”
Additionally, the new size would complicate the development of apps, which have been specifically designed for the 3.5-inch and 9.7-inch displays of current Apple devices.
And the final reason: “Steve Jobs emphatically stated that 7-inch tablets are too small for a pleasant touchscreen experience,” writes Wired.
Google is expected to roll out its own music store in the next few weeks.
It will reportedly tie into the company’s Music Beta service that allows users to upload and store their music collections.
Music Beta was announced after launch of Amazon’s unlicensed service, Cloud Drive. Also worth noting: “Apple got licenses for iTunes Match, which will instantly link a user’s songs to Apple’s master collection.”
“Its earlier negotiations with music companies, for a so-called smart locker service — a Web storage system that lets people link their digital music collections to a vast central database — broke down over financial terms and the music companies’ complaints that Google was not doing enough to curb piracy,” reports The New York Times.
In order for Amazon to stay competitive in the cloud computing market, its S3 (Simple Storage Service) and EC2 (Elastic Cloud Computing) could take some notes from Apple’s iCloud (launching October 12).
Seamless integration “provides iCloud with huge scale advantages over Amazon,” suggests Forbes, by wirelessly storing content from iPhones, iPads, the iPod touch, Macs or PCs and automatically pushing content to all devices.
“Consumer-centricity” makes cloud-computing user-friendly with targeted features like iTunes Match. “This feature prevents the need to painstakingly upload music into the cloud as iTunes Match itself creates a library matching the user’s existing playlist.”
And pricing. “While the iCloud provides free 5GB-worth of storage for documents, mail, and back-up for iOS 5 users, Amazon’s S3 service charges users for even the first gigabyte of storage space.”
The article points that little is yet known about Amazon’s other competitor, Google’s GDrive.
With its Kindle Fire, Amazon hopes to distinguish its Appstore from Google’s Android, even though the tablet’s OS is based on the 2.x version of Android.
“It seems that Amazon really wants to make sure that the Fire is a more curated and cohesive experience than most Android tablets,” suggests The Next Web, as is evident in the guidelines for submitting Kindle Fire applications. However, the post points out: “They’re not locking everything down though, as installation of ‘non-Appstore’ apps will be permitted without rooting.”
Interestingly, Amazon’s Appstore doesn’t support in-app purchasing. “Because Google’s in-app purchasing technology requires access to Google Mobile Services,” says Amazon, “it will not work on Kindle Fire. We are working on a solution that will let you sell digital content in your apps using Amazon’s merchandising and payments technology. Our solution is currently in Beta and available by invitation only.”
France recently banned TV and radio show hosts from naming Facebook, Twitter, or other specific sites unless directly referencing a news story involving the companies. The regulation was created to reduce bias for the popular social networks over other striving, lesser known sites.
Apple’s iTunes has benefitted from the phrase “Now available on iTunes” commonly tacked onto advertisements where it was previously customary to simply say “Now available in all good music stores” — which could today be updated to say “online music stores” in order to include other music providers.
Additionally, the phrase “Now available on Amazon.com” has become standard for book promotions, which basically provides free advertisement for the site while ignoring other providers.
Similarly, “Follow us on Twitter” and “Like us on Facebook” have dominated commerce. “Social networks only work when people use the same ones. In other words, they naturally lend themselves to being monopolized,” suggests The Next Web.
Some brand names have now become part of everyday language. Google, for example, has grown so popular that it is commonly used as a verb when describing the act of searching online. TiVo is also regularly used as verb, and sometimes replaces “DVR” in conversation.
The article casts doubt on the actual effects regulation would have on social media monopolies: “…users will typically go where all the action is taking place.”
“The Internet isn’t a monopoly though. It’s an oligopoly consisting of multiple monopolies from different digital industries, and the reason this is happening really isn’t all that complicated,” adds The Next Web. “Success breeds success, something which underpins most monopolies, whether we’re talking about dominant languages, biological species or, indeed, Internet technology companies. Hegemony stems from success, and it’s certainly not unique to the Internet age.”
A comprehensive comparison between Netflix and other streaming services shows that, even after the recent criticism regarding the split of its businesses, “Netflix is still the champ, but only if you count both its the streaming and DVD mailing services.”
In his evaluation of current offerings, David Strom of ReadWriteWeb examined services such as Amazon Prime, Hulu Plus, Vudu.com and Justin.tv.
“Overall, once you leave Netflix you will find fewer choices and searching won’t be as easy to find something to watch,” he writes. “Netflix has a great search engine that won’t just look for movie titles but also check for actors and other principals involved in the movie itself, something the other services don’t do as well at.”
Another upside to Netflix is the ability to use devices such as the iPad or TiVo box to stream movies. While of the services enable streaming to your Windows or Mac Web browser, they’re not all compatible with other devices.
“So while you might be upset about paying for two bills for your video rentals from Netflix, unless you are willing to spend more time searching for content, you are probably better off sticking with the service for the time being, at least until the others catch up with their content licenses,” Strom concludes. “Or if you already have a cable TV subscription, investigate whether it offers something similar to Comcast’s Xfinity and see what their coverage is there. Ironically, that might be your best alternative to Netflix after all.”
Amazon’s launch of the Kindle Fire tablet may have an impact on Netflix, since the new tablet will make it easier for users to watch streaming video content via Amazon.
“With its $199 price point the tablet could sell like crazy this Christmas,” reports Forbes. “Users will be encouraged to buy Amazon Prime in order to speed their Amazon purchases and Prime just happens to come complete with Amazon’s streaming video service.”
The decision for consumers between Amazon Prime and Netflix will likely be based on pricing and variety of content offerings.
Amazon Prime beats Netflix on price, set at $80 a year ($6.67 per month), while Netflix streaming costs $8 a month.
Netflix, however, has more variety of content with 51,000 titles currently available for streaming, compared to Amazon’s 11,000.
Amazon may soon be able to compete in this regard with added content from Fox and CBS deals. Netflix has similar deals with Fox and CBS and a new DreamWorks Animation deal, but it will lose movies from Sony and Disney with the loss of Starz.
Both companies may press Hollywood to license more content for streaming, but continuing to pay more for films could potentially break Netflix, while Amazon has other sources of revenue to cover costs.
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.”
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?”