Business

Changes to business digitisation brings

AMD Complete ATi Purchase
AMD, the second largest microprocessor manufacturer has complete the purchase of graphics, chipset and CE specialist ATi Technologies in a deal worth around $5.4Bn.
From day one they’re talking a new game – “Fusion.” The integration of the central processing unit (CPU) and graphics processing unit (GPU) at the silicon level. Interestingly they claim this will give them a significantly increase in performance-per-watt – benefitting both portable devices, by giving them longer results from batteries, and more efficiencies for mains-powered computers, vital in the world we’re entering with a need to keep an eye on power consumption. The Fusion products are expected late 2008/early 2009.
Phil Hester, AMD senior vice president and chief technology officer summed it up, “With the anticipated launch of Windows Vista, robust 3D graphics, digital media and device convergence are driving the need for greater performance, graphics capabilities, and battery life.”
The capabilities of graphics processors have been gathering pace over the recent years to the point where they come close to rivaling the main processor themselves.
To get hold of ATi, AMD are splashing $4.3Bn in cash and also handing over 58m AMD shares. $2.5 billion of the cash mountain comes courtesy of a term loan from Morgan Stanley Senior Funding. The intention to do the deal was made in July this year.
At the time of the original announcement there was some speculation that ATi rival, nVidia would sell to Intel. This didn’t come to pass, possibly because already has a strong graphics chip division. To minimise the impact of todays deal on nVidia, Mike Hara, Nvidia’s vice president of investor relations, told Reuters, “It reinforces our philosophy that we don’t want to be tied up. I don’t think anything changes. In fact, what we’ve already felt and seen I think gives us the energy to push faster.”
AMD
26 October, 2006
US Scouts Offered Respect Copyright Merit Patch
Coming straight from the you-must-be-having-a-laugh folder, news reaches us that the Los Angeles Scout group is introducing a new merit award — the Respecting Copyright Patch. We kid you not.
The MPAA, the film industry trade body, has been instrumental in the development of the structure of the programme. To be awarded the badge, the young scouts will need to learn the basics of copyright law, five ways of identify copyright material and three ways that copyright material can be ‘stolen’.
I know, I know, it just sounds like one big fun-fest doesn”t it, but the fun doesn’t end there for those lucky kids. There is also a compulsory activity with a choice between either visiting a film studio to witness the number of people that are involved with the production of films (therefore helping them understand how many people would be affected if the whole thing closed down), or to create a public service announcement warning of the risks of ‘copyright theft.’
“We have a real opportunity to educate a new generation about how movies are made, why they are valuable, and hopefully change attitudes about intellectual property theft,” Dan Glickman, chairman of the Motion Picture Association of America told the press.
As veteran copyleft campaigner Cory Doctorow over at BoingBoing asked, how balanced will the tutoring of this patch be? Will the young and clearly impressionable scouts also be told about subjects such as Creative Commons?
There are 52,000 scouts in the LA area, many who have family members involved in some way with the creation of films, which is bound to help in its uptake of the patch. It is understood that the MPAA hope to take this ‘opportunity’ to a wider audience. Their plan? Expansion to the rest of California early next year, then to America as a whole.
The patch that they would earn, which is rather tacky to say the least, shows a (c) copyright symbol in the centre, with the left side displaying a CD and to the right, a film reel.
Just how many other industries are given the opportunity to spread their message through the American Scouts is unclear. To us it sound like a worrying trend.
23 October, 2006
Apple Grows iPod Sales
Apple has continued to increase the number of iPods they’re selling. Their latest quarterly results show that they grown the 8.11m iPods they sold in the previous quarter to 8.73m this quarter, beyond market expectations. The quarter that is reporting didn’t change or introduce any new iPods.
The number of computers they sold has also increased 30 percent from the same quarter in the previous year to 1.61m. We’re slightly surprised that this figure wasn’t higher, given that the latest quarter included the switch to the Intel processor, which has given a considerable increase in the speed.
Jobs enthused, “Selling more than 39 million iPods and 5.3 million Macs while performing an incredibly complex architecture transition is something we are all very proud of.”
Overall, the company posted revenues of $4.84Bn, and a net quarterly profit of $546m.
19 October, 2006
Logitech Buys Slim Devices
Logitech has announced that it is buying Slim Devices for $10m cash plus a possible performance-based payment tied to certain revenue targets. The news came on the same day as their best-ever Q2 sales, which reached $502m.
Slim Devices has been selling their Squeezebox WiFi music player since 2004, continuing to improve the product through subsequent releases. The device pulls music from PCs, distributing it via Ethernet, or Wirelessly about the home.
Latterly they’ve moved into the higher ground of products, by bringing out the Transporter. Featuring high quality components, it also differs from the Squeezebox by actually have some controls on it, as well as a remote control.
Logitech currently sell some devices for playing digital music from your PC, as SlimDevices does, but they haven’t exactly set the market on fire.
Junien Labrousse, Logitech SVP of the Entertainment and Communication Business Unit explained their reasoning for the purchase, “One of the main reasons for this acquisition is the development capabilities of the Slim Devices team. The technical level of this group is a key asset that we fully intend to leverage.” He also confirmed the concerns of some of Slim Devices current customers “[they] will function independently, keeping the spirit of advance audio technology and strong product innovation.”
We think it’s a good move by Logitech, as Slim makes good-looking devices and Logitech generally don’t. As well as the technology they’ll be gaining, we hope that they’ll also focus the product design within the Slim Devices team.
Logitech has the ability to take Slim Devices music players through their considerable retail connections, moving slim from the Geeks favorite, to a mainstream products.
Slim Devices
Logitech
19 October, 2006
Sony Paint Ad: First HD Advert In UK
Sony and Sky are tying up to show the UK’s first HD advert tonight.
You may well have seen a lot of the build-up for Sony’s latest advert – the one with the paint. It’s the follow-up to their coloured balls advert shot in San Francisco.
Appropriately the advert is for Sony’s Bravia range of HD TVs. Shot in the somewhat less-glamorous location of a disused tower block in Glasgow, Scotland, it shows 70, 000 litres of coloured paint exploding up the side of the block of flats.
Shot over 10 days and with a crew of 250 people, the paint was mixed on site by 20 people. The clear up took 5 days and 60 people.
Behind the scenes footage of the shoot has been circulating on the online video services for about two months now. The wobbly camcorder shot material lends itself to looking like it’s been shot by your ‘man in the street,’ but given the size of the campaign, it’s more likely to be seeded by Sony or their advertising agency, to try and create a build up of interest.
Here’s the finished results.
It makes total sense for Sony to shoot this ad in HD given they’ve been pushing HD for nearly 3 years in Europe – initially through their professional arm that sells the cameras. Given their zeal in this area it makes you wonder why it took so long for an HD advert to come out from them.
The launch of this first HD ad follows a major marketing agreement between Sky and Sony to promote HD.
The HD advert will shown on Sky Sports HD 2 tonight during the Chelsea vs Barcelona football coverage.
18 October, 2006
Mobile Users Want GPS Tools Not Mobile TV
A new survey of over 1,000 early adopters and mobile phone business users discovered little enthusiasm for mobile video but a keen interest in using handsets as navigation aids.
According to the Chicago Tribune, the study by market research firm In-Stat suggests that mobile phone companies may need to change their strategy as they try to encourage more users on to third-generation data services.
In-Stat analyst David Chamberlain noted that there’d been some “disappointment” in the industry as uninterested consumers had failed to clutch mobile video to their hearts in vast numbers.
Commenting on the low uptake of value-added 3G services, Chamberlain suggested that customers were reluctant to part with their hard-earned just to watch juddery little video clips of “yesterday’s ballgame” on the squinty displays of smartphones.
Although just 15 per cent of those surveyed expressed a strong interest in mobile video, when they were asked if they wanted phones capable of giving out location information and directions, over half (53 per cent) said, “we’ll have some of that please, squire.”
“People like the idea of getting directions from their phone to take them to their destination,” Chamberlain observed, adding, “They like getting suggestions about restaurants nearby and how to find them.”
If the findings of the In-Stat survey prove to be representative of the population as a whole, it looks like mobile phone carriers are going to have to shuffle around their ranges of phones currently being offered, and give GPS-enabled phones a bigger push (or look to include more mobile navigation apps like Google Maps).
Although navigational applications don’t hog as much bandwidth as TV and video, mobile companies should still be able to persuade users to upgrade, pointing out that mapping programs still need a nippy third-generation network to provide fast route updates.
In-Stat
17 October, 2006
Jawed Karim: The Third YouTube Founder
There’s bound to be lots of these stories floating around the Valley, as companies started getting bought for large sums of money. It’s going to be the equivalent of being/claiming to be the fifth Beatle.
We feel it’s more likely that this one is true as it’s covered by the New York Times.
Jawed Karim was the third founder of YouTube beyond Chen and Hurley we’re told. He was with them at PayPal, before it was sold to eBay, then at the very start of YouTube, throwing in
“They would often meet late at night for brainstorming sessions,” he continues, “Mr. Karim said he pitched the idea of a video-sharing Web site to the group.”
Beyond the early stages, Karim decided to not take a full time role there but returned to studying instead, for this he reduced his equity holding. After the sale, he’s still a very rich man.
Living what he was building, “Armed with a video camera, Mr. Karim documented much of YouTube’s early life.”
If you’re a struggling entrepreneur reading this, there’s a very interesting section that Karim filmed in April 2005. Fellow founder Chen talked about “getting pretty depressed” because there were only 50 or 60 videos on the YouTube site. Clearly there are fallow times before growth.
It’s also amusing to see his own site where he’s listed his latest programs – “YouTube, My new company.”
The first piece of video ever put on YouTube.
via NYT
16 October, 2006
Carphone Warehouse Shares Drop On Vodafone News
The Herald is reporting that the shares in Carphone Warehouse took a bashing on the news that Vodafone is switching away from them, to sell their mobile phone contracts through Phones 4U instead.
The shares dropped 13.9%
Vodafone cited that Phones 4U charging Vodafone a lower commission was the reason for the change. We suspect that doesn’t quite tell the whole story.
Carphone (as those in the industry call it) is becoming a major threat to Vodafone as they both move into other areas of communication – in the big communications convergence rush.
Carphone has been building up its bought AOL UK two days ago.
Vodafone themselves have recently moved into broadband, in a deal with BT. With Carphone effectively becoming a competitor, we assume that Vodafone don’t want to carry on giving them money.
If Vodafone’s choice to dump Carphone hurts them more will be revealed in the future. As Roger Taylor, FD for Carphone points out, “Every Vodafone customer that walks into our stores now will not walk out on a Vodafone contract.”
13 October, 2006
iPod (RED); Razr RED; Slvr RED:Help Eliminate AIDS in Africa
If you haven’t heard of (RED) yet, you certainly will – there’s a ton of celebs involved and it’s going to be all over the media. It was created by Bono and Bobby Shriver, Chairman of DATA and it’s already been on Oprah in the US with Penelope Cruz and Kanye West.
(RED) tell us they’re not a charity, they’re a business model. “You buy (RED) stuff. We get the money. Buy the pills and distribute them. They take the pills, stay alive, and continue to take care of their familiaes and contribute socially and economically in their communities.”
Apple have a Nano (RED), which is not surprisingly red. Buying one will give you the prefect opportunity to show that you are supporting the (RED) cause. $10 of each one sold goes to (RED). Apple will also offer a £15 and £25 iTunes (PRODUCT) RED gift card available for purchase at Apple’s retail and online stores next month.
Motorola are the “exclusive wireless partner” for (PRODUCT) RED and have two handsets of the red hue. The red MOTOSLVR is exclusive to the UK and the MOTORAZR V3m is only available in the US. The deal with the phones sounds like it’s actually better for (RED) long term depending on the service provider. With Orange, 5% of your monthly phone bill spend will also be donated to (RED).
We’d normally be dismissive of red-ipod-type-stunts, but an effort like this can’t be a bad thing. Tune in to their blog to stay current.
(RED)
13 October, 2006
BBC Use Digital To Pressure Government
BBC Director-General Mark Thompson is back on again trying to justify to the British government why the BBC should be allowed to increase their licence fee above the Retail Price Index (RPI).
Thompson’s main thrust for the increase is the cost of going digital. It’s a clever approach as the UK government has publicly committed itself to switching off analogue TV in favour of digital. Thompson also knows that once the analogue spectrum is freed up, the government may make bucket loads of cash from making that spectrum available.
Thompson ratcheted up the pressure on the Government to comply, by reminding them the risks of digital transition, “If it is under resourced it will fail. It’s as simple as that – and the failure will impact on many millions of households.”
The UK public has for a long time been told, primarily by the BBC, that Digital will be amazing and their lives will somehow become increasingly glorious once they get a Digital TV. Only now are they starting to understand that it’s going to cost them more to have.
Until today, Thompson was asking for an increase in the licence fee of RPI plus 2.3%. today it’s dropped to +1.8%. Under the adjusted figures, the license fee would be £149 in 2013/14 by today’s prices. The reduction has been helped by Ofcom making the decision to no longer charge the BBC a spectrum tax.
Being publicly funded, this kind of ~~argument~~ discussion is very important to the BBCs future ambitions – digital and otherwise. The license fee is payable by all UK residents who have a TV.
Mark Thompson speech today
11 October, 2006