“In an upbeat and highly insightful essay on technology and innovation, pioneer Marc Andreessen outlines the ‘dramatic and broad technological shift in which software companies are poised to take over large swathes of the economy…'” comments ETCentric staffer Bob Lambert with this submission.
Andreessen notes HP’s announcement that it is “exploring jettisoning its struggling PC business in favor of investing more heavily in software” and Google’s plans to “buy up the cellphone handset maker Motorola Mobility” as recent surprises in the tech world, yet also examples of what makes the pioneer “optimistic about the future growth of the American and world economies.”
Andreessen suggests that Apple and Google are undervalued and we should avoid using the term “bubble” when analyzing the value of technologies. He writes: “…too much of the debate is still around financial valuation, as opposed to the underlying intrinsic value of the best of Silicon Valley’s new companies.”
“Over the next 10 years, I expect many more industries to be disrupted by software, with new world-beating Silicon Valley companies doing the disruption in more cases than not,” Andreessen adds.
Andreessen’s essay offers a compelling take on the direction of the tech industry, its place in world economies and some of the challenges that lie ahead. He notes interesting examples including Amazon, Netflix, Pixar, Pandora, Skype and others.
“Instead of constantly questioning their valuations, let’s seek to understand how the new generation of technology companies are doing what they do, what the broader consequences are for businesses and the economy and what we can collectively do to expand the number of innovative new software companies created in the U.S. and around the world,” he concludes. “That’s the big opportunity. I know where I’m putting my money.”
Andrew Losowsky, books editor for The Huffington Post, has released “Reading in Four Dimensions” (available as a 99-cent Kindle Single) — a fascinating essay on the future of publishing and how the Internet has impacted the reading experience.
Many of us are publishing in new ways via Facebook, Twitter, blogs and more. Readers are interacting with these “works” in a kind of social reading environment, which changes the way stories are written and read.
Physical books will get better, but there will be fewer of them. Books do not change like Web entries that become features and can travel with you like a time machine that catalogues the thinking of that time.
The TechCrunch post includes a video interview with Losowsky that addresses key points from his essay, including “how print brings permanence to digital publishing, how the concept of ‘publishing’ has translated online and the value of paper books in our increasingly digital world.”
HP unveiled a new 4G version of its TouchPad tablet on Amazon this week.
The tablet features a faster 1.5 Ghz processor, an updated webOS, 32GB of memory, 4G and Wi-Fi capabilities, and a 9.7-inch LED touchscreen.
It retails for $699 and is available for pre-order on Amazon.com (although the listing does not include a release date).
According to PCMag: “Over the weekend, HP offered a $100 discount on the TouchPad, as did retailer Staples, allowing users to get as much as $200 off the tablet. It’s not clear if that was the original intent, however. Staples said rather cryptically that the coupons ‘were meant for different audiences,’ and did not respond to follow-up questions.”
Time Warner CEO Jeff Bewkes announced the availability of Flixster Collections, a social movie portal that went into public beta this week.
The service, a revamped version of the Flixster product acquired earlier this year, encourages users to share what they’ve watched with friends.
If there’s something you want to see, for example, Flixster directs you back to Amazon, iTunes, Hulu and Netflix (as well as your hard drive, if you let it). There are also links for theatrical films, including reviews, trailers and ticketing services.
“You can also imagine how this will tie in to Ultraviolet, the cloud/locker system for video that Warner and a big coalition of movie studios and tech companies (except for Apple and Amazon) are pushing,” writes Peter Kafka in All Things D.
So far, Flixster Collections is available for PCs and Macs, but no mobile app yet.
Two new tablet devices aimed at children under the age of 10 will hit the market this month, providing parents with the option of no longer having to share their iPads.
Educational toy maker LeapFrog began accepting pre-orders last month for its new LeapPad (available August 15) — a $99, 5-inch device including 2GB of storage and a video recorder. Designed for 4- to 9-year-olds, the LeapPad features a touch screen and big buttons for little hands.
Additionally, Amazon is now taking pre-orders for a 7-inch Android-based touchpad called the Vinci, available later this month starting at $389. The Vinci tablet features a protective soft-cornered chassis, 512MB of RAM and a 3MP camera.
Neither tablet includes Wi-Fi functionality, so parents won’t need to be concerned regarding what their children might download.
Amazon has acquired UK-based Pushbutton, an interactive TV enterprise that builds apps and services.
Pushbutton is best known for its version of Lovefilm for Sony Bravia TVs and the PlayStation 3. Lovefilm, purchased by Amazon in January, was “basically the Netflix of Europe.”
The company also created the Planit test app that creates personalized video collections based on TV and VOD viewing habits. The app could possibly be incorporated into Amazon Instant Video (which currently offers more than 90,000 movies and TV shows).
The acquisition could also help Amazon create video apps for its tablet rumored to be launched later this year.
In related news, Amazon recently signed a deal with NBC Universal to show Universal movies through Amazon Prime Instant Video — and a deal with CBS to stream content from its back catalog, including old “Star Trek” episodes.
Amazon has announced a deal with NBCUniversal to offer Universal films online, in a move designed to step up competition with services such as Netflix and Hulu.
Amazon offers subscribers to its “Prime” program discounts on shipping of products, and free access to an online library of films. The service costs $79 a year.
Amazon announced an agreement last week with CBS that expanded its library to more than 8,000 titles. The NBCUniversal deal will grow Amazon’s library to more than 9,000 movies and TV shows (compared to Neflix’s 20,000).
Films such as “Eternal Sunshine of the Spotless Mind,” “Being John Malkovich,” and “Fear and Loathing in Las Vegas” are part of the deal.
In an effort to help emerging artists reach wider audiences, the Sundance Institute has partnered with online video outlets including Hulu, Amazon, Netflix, iTunes, YouTube and SundanceNow.
The deals are not exclusive to any one platform, so films can be made available simultaneously on competing sites.
Films will be packaged under the Sundance name as part of its recently launched Artist Services Initiative. Marketing guidance will also be provided to filmmakers through the new Web-based program.
New Video will serve as the aggregation partner for online distribution, taking a small cut of the revenues. However, the online services will not purchase the movies, enabling the filmmakers to retain their copyrights.
Sundance hopes that the online initiative will provide an audience for films that typically do not find conventional distribution. First to be distributed: “Connected: An Autoblogography about Love, Death & Technology” by Tiffany Shlain and “On the Ice” from Andrew Okpeaha MacLean.
Amazon announced this week that its revenue increased a staggering 51 percent to $9.9 billion in Q2, with significant help from the highly successful ad-supported Kindle (now the most popular version of the e-reader).
Amazon finance chief Tom Szkutak explains this marks the Seattle-based company’s best growth rate in 10 years.
However, the growth also comes at a cost; profit declined 8 percent as the world’s largest online retailer continued to invest in fulfillment centers and digital offerings. Additionally, operating expenses rose 54 percent.
Amazon also had 5,300 new hires in the quarter, giving the company a total of 43,200 employees, up from 28,300 a year ago.
Investors appear unruffled by Amazon’s infrastructure spending; stock rose 5.7 percent to $226.40 on Tuesday.
Following failed attempts to draw investor interest in a bankruptcy court auction, Borders Group Inc. has announced it will liquidate its remaining assets.
The second-largest U.S. bookstore chain says it will start liquidating its remaining 399 stores as soon as Friday, with the business to be shuttered for good by September. The company employs nearly 11,000 people.
“We were all working hard toward a different outcome, but the head winds we have been facing for quite some time, including the rapidly changing book industry, [electronic reader] revolution and turbulent economy, have brought us to where we are now,” explained Borders President Mike Edwards.
Analysts have expressed concern that the demise of Borders may speed the decline in book sales and possibly make it more challenging for new writers to be discovered. Michael Norris, a senior analyst at Simba Information added, “Thousands of people whose job consisted of talking up and selling books will eventually being doing something else, and that’s bad for authors, agents, and everyone associated with the value chain in books.”
ETCentric staffer Dennis Kuba commented: “Looks like Amazon has one more to go. I’ll miss browsing through the stacks.”
Amazon may be selling a tablet computer as early as October, report people familiar with the matter.
The new tablet is expected to feature a 9-inch screen and run on Android’s operating system (but will reportedly not include a camera). An Amazon-designed second tablet may be available next year.
Amazon is still expected to introduce two new Kindles in the third quarter.
With its own online retail operation, Amazon is well positioned to compete with Apple. Moreover, one analyst says Amazon can offer a cheaper alternative and make up the difference with movie, music and book sales.
Amazon announced several notable enhancements to its Cloud Drive and Cloud Player service this week.
The Cloud Player is finally available for the iPad and has been optimized for Safari (joining existing apps for the Android phone, Android tablet, Mac, and PC).
New customers who register for the annual $20/20GB plan will receive unlimited space for music tracks.
Cloud Drive users can also store all of their previously Amazon-purchased MP3s for free.
The legal debate continues regarding the divergent approaches to cloud-based music lockers proposed by Amazon, Google and Apple.
The 2008 Cablevision decision in the Second Circuit U.S. Court of Appeals allowed for a remote DVR feature (when done at the direction of users and separate copies were stored for each user as would be done for an in-home DVR). The decision is the strongest legal case for a music locker service.
EMI’s current suit against MP3tunes.com will also impact the situation. EMI asserts that music locker services must remove material if they become “aware of facts or circumstances from which infringing activity is apparent.”
While Apple has signed agreements with the major labels, it has not yet done so with smaller labels.
According to Ars Technica: “Either Apple wasted millions of dollars on licenses it doesn’t need, or Amazon and Google are vulnerable to massive copyright lawsuits.”
Google and Amazon will assert their rights under DMCA Safe Harbor and the Cablevision case. In addition, they may have some protection under rights they have to sell music through their online stores.
MediaMall, the group behind the popular PlayOn media software, announced this week a closed beta of an online service that allows users to record online video for later viewing (including offline).
PlayLater works similarly to a DVR, allowing “recording” of online video from sites such as Hulu, Netflix, Amazon and major networks.
Early reporting suggests playback of DRM protected files only on approved programs running on PC (using Windows Media Player), Android, iOS, Google TV, game systems, etc.
PlayLater is expected to eventually be available for $5/month, or $50/year.
CrunchGear reports: “Believe it or not, the term DVR is actually appropriate here. I’ve used the service and it actually records the programming and wraps the video file in a DRM-laced .plv container that’s only playable on approved programs.”
