Jaguar Financial Corporation CEO Vic Alboini, an investor in struggling Research In Motion, is urging the BlackBerry maker to consider selling the company. He has recommended that RIM form a committee of independent executives to explore the proposal.
According to the article: “RIM is seeing its once commanding presence in the smartphone market eroded by the likes of Android and Apple’s iOS: where a year ago RIM accounted for 19 percent of the market, second-quarter figures from Gartner put the company’s current share at 12 percent.”
Alboini suggests that selling RIM would maximize the company’s value to investors, who have watched their investments in the Canadian company significantly decline during the last year.
“RIM has been hanging hopes for its future on the BlackBerry PlayBook tablet, as well as a new swath of smartphones expected to land in 2012 based on RIM’s recently-acquired QNX operating system — the same OS used in the PlayBook,” reports Digital Trends. “So far, industry response to the PlayBook has been muted, with many citing its reliance on a BlackBerry handset for email as a major impediment — and U.S. mobile carrier Sprint recently backed out of plans to offer a 4G version of the PlayBook, citing lack of customer interest.”
During his bleak forecast of the publishing industry at the Edinburgh International Book Festival, novelist Ewan Morrison suggested the rise of the e-book will mean the end of writers as a profession, as piracy and a demand for steep discounts take over the book industry as it has with music, newspapers, games, porn, photography, telecommunications and home video.
Publishers will no longer be able to provide advances to enable writers to make a decent living and writers will increasingly depend on the “long tail” which cannot support them. Morrison adds that only established writers will prosper.
In 10 to 15 years, he believes the largest “publishers” will be Google, Amazon and Apple.
“The writer will become an entrepreneur with a short shelf life, in a world without publishers or even shelves,” predicts Morrison.
Apple claims there are more than 600 U.S. school districts that have at least one classroom where each student is receiving an iPad to use throughout the school day.
The popular tablets feature interactive programs in math, note-taking apps, videos and tutorials on everything from history to foreign languages.
The tablets are reportedly very popular in special education and for those who learn visually.
Textbook publishers are racing to develop curriculum specifically for iPads. Moreover, digital programs are less costly than textbooks and have interactivity and videos as well.
“I don’t want to generalize because I don’t want to insult people who are working hard to make those resources,” says Burlington High (Massachusetts) principal Patrick Larkin of textbooks, “but they’re pretty much outdated the minute they’re printed and certainly by the time they’re delivered. The bottom line is that the iPads will give our kids a chance to use much more relevant materials.”
Netflix walked away from another deal with Starz after that company insisted on a tiered-pricing model similar to what they would get with a cable channel. Netflix did not want to tamper with the simplicity of its monthly fee model.
Netflix had reportedly offered Starz more than $300 million per year to renew their agreement.
With the demise of the Starz deal, Netflix customers may feel that they are paying more and getting less. Still, Netflix counters that their Starz content accounts for only 5-6 percent of domestic viewing.
Netflix will be challenged by competitors like Hulu, Amazon, Apple and Microsoft XBox Live. Moreover, cable companies are increasingly offering similar access to video through TV Anywhere services.
Starz may either sell its content to a Netflix competitor or try and create its own streaming brand like HBO.
Bowers & Wilkins has launched a free app that enables users to stream music from wirelessly connected Apple devices for playback on any AirPlay-enabled player, such as the Zeppelin Air iPod dock.
“There are many fantastic mobile apps that allow you to stream music, but the Zeppelin Air App is the first of its kind that enables users to share music and create collaborative playlists with friends, mobile device to mobile device,” explains Paul McCarthy of App Developer Aurnhammer. “Bowers & Wilkins has essentially created a wireless, virtual jukebox.”
“The app lets every person with an ‘i’ device contribute to a party’s playlist,” reports MarketNews. “The music can first be compiled through the app, then arranged to the organizer’s liking before it’s officially sent to the AirPlay device for playback.”
An open WiFi network and AirPlay is required to use the app. AirPlay requires iTunes 10.1 or later and an iPhone, iPad or iPod touch.
Apple’s iTunes Match went live to developers for testing this week and music “streaming” from the cloud is reportedly already up and running.
If the hype is accurate, the TechCrunch article header from Dennis Kuba’s story submission may prove telling: “With iTunes In The Cloud, Apple Under-Promises And Over-Delivers.”
Apple enthusiasts are excited to see what shakes out this fall with iOS 5 and iCloud. Yesterday, TechCrunch reported: “Tonight brought perhaps the biggest surprise revelation yet: iTunes in the Cloud will support streaming as well as downloading of music.”
There is also speculation that this announcement may lead to a possible “cloud iPhone.” Rumors are making the rounds that Apple might unveil a low-cost iPhone 4 (with minimal on-board storage) alongside its new iPhone 5 release. If iTunes has streaming functionality, the low-cost version of the iPhone could rely on the cloud for content.
Be sure to check out the iTunes Match videos included in the post.
TechCrunch recently added an update: “There’s some debate going on right now about whether or not this is technically streaming. Even Apple is avoiding the term, as Peter Kafka points out. There are two reasons for this — reasons Google follows as well with their service.”
In a price comparison of Apple’s iPad and 42-inch LCD TVs, Bloomberg has included a compelling chart from research firm DisplaySearch that illustrates how the average price of a large screen TV is expected to soon drop below that of the popular tablet.
According to DisplaySearch, the average cost of a 42-inch LCD TV in the U.S. is expected to drop to $578 by the end of this year and continue to fall through 2015.
Apple’s iPad tablets sell for $499 to $829 in the U.S., with the Wi-Fi only, 32-gigabyte version priced at $599.
“The value consumers ascribe to a TV set is lower than most manufacturers’ costs,” says Macquarie Group analyst Jeff Loff. “Even incremental features like 3D, Internet connectivity and enhanced motion processing do not generate enough of a price lift to turn TV sets profitable.”
There has been a fair amount of recent press regarding changes to Apple’s TV rental offerings. Peter Kafka, reporting for The Wall Street Journal, writes: “Apple has completely removed customers’ ability to rent shows from iTunes; the remaining options are to buy individual episodes or in some cases a ‘Season Pass’ for a year’s worth of shows.”
Apple spokesman Tom Neumayr says people prefer buying TV shows instead of renting, which not surprisingly may be more in line with the needs of customers interested in Apple’s cloud initiatives. “iTunes in the Cloud lets customers download and watch their past TV purchases from their iOS devices, Apple TV, Mac or PC allowing them to enjoy their programming whenever and however they choose,” Neumayr said.
According to a Fox statement: “After carefully considering the results of the rental trial, it became clear that content ownership is a more attractive long-term value proposition both for iTunes customers and for our business. To further enhance the value of ownership, we are working with Apple to make content available within their new cloud-based service.”
Amazon’s tablet PC is widely expected to be ready for release this fall and, according to Forrester Research, will “completely disrupt the status quo.”
Forrester analysts predict the tablet will provide competition for Apple’s iPad and could sell as many as 5 million units in the fourth quarter of 2011.
The report suggests Amazon’s success will depend on pricing the device below $300 (paidContent points out that Amazon has yet to officially confirm it will even release a tablet).
Forrester believes an Amazon tablet will prove popular based on the company’s “willingness to sell hardware at a loss combined with the strength of its brand, content, cloud infrastructure, and commerce assets.”
If successful, an Amazon tablet could significantly boost the competitive profile of Google’s Android operating system.
As part of its partnership with the Original iPhone Film Festival, Red Giant Software has dropped the cost of its $2.99 “Movie Looks HD” app for a limited time.
According to Hand Held Hollywood, the app will be available for free via Apple’s App Store from August 23-September 1.
Movie Looks HD is a universal app capable of adding a professional finish to iPhone footage, providing services such as color correction using multi-layer color grading.
“If you haven’t tried Movie Looks HD yet, it’s an awesome universal app, capable of adding a professional, film-like finish to your iPhone footage,” reports HHH. “If you’re familiar with Red Giant’s line of ‘Magic Bullet’ plug-ins, then you already know what I’m talking about.”
The Original iPhone Film Festival asks aspiring filmmakers to shoot, edit and upload films with an iPhone, iPod Touch or iPad 2 (the submission deadline is September 30). According to the festival’s site: “We’ve recruited a panel of experienced industry professionals from the worlds of advertising, film and television to watch what you come up with. They will pick their favorites and we’ll give away some cool prizes.”
The recent IHS Screen Digest Media Research report indicates that Apple’s iTunes held the number one spot for movie electronic sell-through (EST) and Internet video on demand (iVOD) with 65.8 percent of the market in the first half of 2011. The Zune Video Marketplace was second with 16.2 percent, while Walmart’s Vudu came in third with 5.3 percent.
The research suggests much of Apple’s success can be traced to AirPlay which allows you to stream wirelessly to other devices including TVs.
“IHS believes that the ability to stream media from Macs or iOS devices to an Apple TV or third-party AirPlay receiver has prompted users to buy more movies from iTunes — presumably so they can AirPlay them to somewhere else,” reports Ars Technica.
It should be noted that Amazon spent this period shifting its strategy to streaming video on demand (SVOD), which IHS ranks in a separate space from iVOD. According to the article: “Amazon still saw a small bump from 4 percent in the first half of 2010 to 4.2 percent a year later, showing that users are still sticking by Amazon’s ‘old’ service.”
Joining other airlines in similar efforts, British Airways will trial the use of iPads with its cabin crews to improve customer service, increase efficiency and cut back on paper. (ETCentric reported in May that Alaskan Airlines became the first U.S. carrier to replace its flight manuals with Apple’s popular tablet.)
If the British Airways trial proves successful, senior crew members will be given tablets in the coming months.
“It gives the cabin crew a whole library of information at their fingertips including timetables, safety manuals and customer service updates,” explains the press release. “It also means any issues can be logged with ground-based colleagues around the network prior to departure so solutions can be delivered while the flight is airborne.”
In related news, United Continental has issued iPads to 11,000 of its pilots in its efforts to convert to paperless cockpits.
According to MarketWatch: “…the move saves 16 million sheets of paper and 326,000 gallons in fuel because of the lighter weight.”
Will we see tablets used for automated publishing systems in other professions?
Google’s third-generation Nexus Prime smartphone will reportedly arrive in October running the Android 4.0 “Ice Cream Sandwich” OS (in time to compete with Apple’s rumored iPhone 5 release).
The device is expected to feature a 720p Super AMOLED HD display, a 4G LTE radio and front/rear-facing cameras, powered by a 1.5GHz processor.
The display will reportedly include a 4.5-inch panel with a PenTile layout.
According to Digital Trends: “Ice Cream Sandwich (ICS) is said to be not just a simple update from the current version of Android. Instead, ICS is intended to be a multi-device OS, which created a unified user experience across Android tablets, phones and Google TV. This could help solve some of the fragmentation problems that Google has with Android, and is one of the primary weak points in its battle with Apple’s seamless iOS.”
Based on Q2 statistics, Android has extended its dominance as the most popular smartphone operating system in the U.S., while Apple’s iOS also continues to gain traction.
According to NPD, 52 percent of smartphones shipped in the U.S. during the second quarter were running Android (up 19 percent from the previous year). Apple’s iOS earned a 29 percent share, up seven percent from Q2 2010.
NPD reports that these figures may have an impact on the potential revitalization of Motorola. “Google’s acquisition of Motorola shifts the balance of power in the handset-patent conflict between Google and its operating system competitors,” said Ross Rubin, executive director of industry analysis for NPD. “Android’s momentum has made for a large pie that is attractive to Motorola’s Android rivals, even if they must compete with their operating system developer.”
Market gains for Android and iOS have negatively impacted the competition. Market share for Research In Motion’s BlackBerry OS dropped significantly from 28 percent in the second quarter of 2010 to 11 percent this year. Microsoft’s Windows Mobile also suffered, falling from 10 percent in Q2 2010 to four percent in Q2 2011.
Prepaid smartphone numbers are on the rise, which may also impact Motorola (8 percent of prepaid phones were smartphones in Q2 2010, a figure that jumped to 22 percent this year). “Android is also leading the charge in the rapidly growing prepaid smartphone market,” Rubin said. “This was once a key segment for Motorola that the company has an opportunity to reclaim as prepaid carriers build their smartphone portfolios.”
Skype, which is in the process of being acquired by Microsoft, is purchasing GroupMe, a year-old startup with 20 employees known for its popular cross-platform messaging system that works between smartphones.
Skype will reportedly pay $85 million for the company, which GigaOM suggests raises the question: “Why is Skype spending so much money on a relatively small company with a relatively small user base when compared to Skype?”
While Skype is a partner with Facebook, it has to be concerned that competition in voice and video communication is becoming intense with Facebook Messenger, Google Huddle and Apple iMessage. (GroupMe adds group messaging.)
Skype will still need to decide if it is a product for consumers or a collaboration tool for corporations.
ETCentric staffer Dennis Kuba raises another interesting question: “Is voice and video communications becoming commoditized?”
