Amazon has become “the most disruptive company in the media and technology industries,” suggests Wired.
Amazon’s rumored tablet has the potential to be the perfect machine to sell both digital goods delivered immediately or physical goods delivered in two days.
“Why not make an independent movie or television show and release it through Amazon?” asks the article. “Once the video is hosted on Amazon’s servers, it’s available for immediate digital download or streaming through Prime to desktops, tablets or set-top boxes. Both streaming and downloads promise a revenue share for content creators. Customers could buy a Blu-ray or DVD that Amazon burns and ships on demand — no storage, no overhead.”
While some of the content may not prove to be top quality, some of it could be the next Funny Or Die or Channel 101 while dramatically impacting distribution: “The breadth and independence of buying choices could easily differentiate Amazon from traditional studios — or even for those studios themselves, from competing services like Netflix.”
Amazon may also offer its forked Android-based OS as a platform to hardware partners providing a new platform with its own code, app and media stores, cloud services and revamped UI.
“In a year from now,” writes Forrester analyst Sarah Rotman Epps, “we could see a range of ‘Amazon tablets’ made by different hardware manufacturers.”
A study of Yahoo’s assets and performance conducted in the past two weeks has led independent directors to conclude a management change was needed. As a result, Carol Bartz, Yahoo’s CEO, was fired and will be replaced on an interim basis by the company’s CFO Tim Morse.
Yahoo’s interest in bidding for Hulu is expected to continue.
The company’s performance has been lackluster and characterized by missteps and high levels of executive turnover under Bartz, resulting in a flat stock price over 2 1/2 years, despite a 60 percent rise in the Nasdaq Composite Index.
“The board hasn’t hired an executive-search firm or financial advisers to help in a strategic review, but is expected to do so soon, said someone familiar with the matter,” reports The Wall Street Journal. “The strategic review isn’t expected to include an evaluation of whether Yahoo should be put up for sale, but will focus on so-called ‘organic’ growth, including the possibility of acquisitions or partnerships, the person added.”
Bartz wrote a memo to her employees Tuesday afternoon: “I am very sad to tell you that I’ve just been fired over the phone by Yahoo’s Chairman of the Board. It has been my pleasure to work with all of you and I wish you only the best going forward.”
Tech companies are spending from $400K -$750K per patent. This is money companies are not spending on innovation or jobs.
Writing for InfoWorld, Bill Snyder makes the analogy to problems with the high costs of healthcare due to money spent defending against medical malpractice. He points out that while the “patent arms race goes nuclear,” not only will new tech jobs not be created, but existing jobs will be lost.
“Think what Google could do with $6 billion, writes Snyder. “Think of the research that would spawn new products, advance innovation, and create who knows how many thousands of good jobs up and down the technology food chain. Instead, that money is going to buy patents.”
Snyder indicates more patent buyouts are on the way. “Everyone knows what an arms race is. One side builds a new weapon, and the other side has to match it. Then the first side builds an even more powerful weapon, prompting the other guy to build more and so on. Remember how well that worked out for the Soviet Union?”
Facebook announced the launch of “Facebook for Business” this week.
The service does not introduce any features new to Facebook, but is reportedly making it simpler for organizations to set up on the social networking site.
“Facebook allows small businesses to create rich social experiences, build lasting relationships and amplify the most powerful type of marketing — word of mouth,” a Facebook spokesperson told GigaOm. “We created Facebook.com/business to make it even easier for people to reach these objectives and grow.”
Facebook provides business services including user profiles for organizations, advertisements, sponsored stories, and assistance with creating Facebook apps and using social plugins.
The timing is interesting, since Google+ has recently been shutting down company profiles for violating user policy.
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.”