Business

Changes to business digitisation brings

  • ITV: Takeover Rumors, Poss BT

    ITV's star rising: Bid Rurmors, Poss BTSpeculators with a wad of cash might like to consider convert said cash into an ITV plc share holding in the next few days some feel.

    Rumors in the city on Friday that BT was seriously considering making a bid for the UK’s top-rated commercial broadcaster have already driven the ITV share-price up. While this particular risk adverse suitor might not make the deal, ITV is looking an increasingly attractive proposition to a variety of companies.

    Even without a takeover, ITV has been tipped by financial commentators to outperform the sector having come out the other side of a restructuring process as a more focused media company.

    ITV's star rising: Bid Rurmors, Poss BTBT, despite having previously stated that it has no desire to enter the content market, needs to consider the competition from both BSkyB and a revitalised NTL. This could force BT’s into making an early move before other predatory companies come out of the shadows but will need to balance this against the cost of such an acquisition.

    Google has already done a deal with ITN, part owned by ITV (and its contracted news provider), to access the company’s extensive archives and is busy beefing up an alliance to take on Microsoft and Yahoo.

    Away from the ‘Search goliaths’, mobile companies also see an opportunity in DVB-H TV services. This would provide revenues but the mobile operators would be in a position where they’d need to split revenues with broadcasters or content owners. Perhaps they would like to get a hold of a strong broadcaster to pay for those expensive licenses?

    ITV's star rising: Bid Rurmors, Poss BTUnlike Sky, which is principally a broadcast platform owner and call centre operator, ITV actually has what companies with desires to be fully-grown media giants badly need; content and a fifty year plus heritage of making TV programmes.

    Until a financially-pressed Chancellor of the Exchequer looks at the anomaly that is the Channel 4 company (effectively a state owned UK TV company), there’s not a lot else available in Europe that sustains close scrutiny. The UK’s Channel 5 is embedded with RTL and it is unlikely that the BBC will be considered for privatisation until after the next Royal Charter is granted.

    In the current frenzy of consolidation, ITV a relative minnow in global terms is sure-fire shark bait to Telcos, mobile operators and Internet giants.

  • CES 2006 Starts: MP3 Player Sales To Soar 200%

    CES 2006 Starts: MP3 Player Sales To Soar 200%Factory sales of consumer electronics are set to soar to a record high of $135.4 billion (~£77bn ~Ä112) in 2006, according to the Consumer Electronics Association’s annual industry forecast.

    The figures were released on the eve of the world’s largest consumer technology beano tradeshow, the 2006 International Consumer Electronics Show at Las Vegas.

    “The numbers say it all – the consumer electronics industry is hot,” screamed an excitable Gary Shapiro, CEA’s president and CEO.

    “Sales exceeded our expectations in 2005, totaling $125.9 billion and we’re forecasting 8 percent growth in 2006. Consumer electronics sales are consistently growing, breaking records every year, because our industry is constantly changing to provide products that consumers love and can’t live without. I cannot wait to see the thousands of new products unveiled this week at the International CES that will continue to grow this amazing industry,” he enthused.

    CES 2006 Starts: MP3 Player Sales To Soar 200%Projections for 2006 and year-end figures for 2005 are included in CEA’s bi-annual US Consumer Electronics Sales and Forecasts report, released every year at the International CES and updated mid-year.

    The report shows year-end totals for 2005 exceeding CEA’s initial projection of $122 billion, increasing by a hefty 11 percent over 2004.

    Much of the growth is put down to next-generation product lines, the growth of Wi-Fi, flat panel displays, MP3 devices and gaming consoles and software.

    Another bumper year is projected with the CEA estimating that sales of digital television (DTV) will scale new heights in 2006, with total sales expected to surpass $23 billion and 18 million units.

    CES 2006 Starts: MP3 Player Sales To Soar 200%In 2005, DTV sales grew 60 percent to $17 billion, with the market fuelled by the growing popularity and competitive price declines of flat panel LCD and plasma displays, which accounted for 40 percent of all DTV sales.

    With next-generation gaming consoles lining up for launches throughout early 2006, the gaming market is set to grow to $14 billion, up from last year’s healthy $12 billion total.

    CEA forecasts huge growth for MP3 players, with consumers set to go ga-ga for devices with video playback capability.

    CEA Director of Industry Analysis Sean Wargo projected sales figures of $4.5 billion in 2006, with 30 percent of all MP3 players having video playback capability.

    CES 2006 Starts: MP3 Player Sales To Soar 200%“MP3 technology helped boost the audio and accessories markets in 2005. With the introduction of video playback capability, MP3 player sales surged 200 percent in 2005 to $3 billion. Trends in 2006 should be no different,” he added.

    Wireless handset sales should get cash tills ringing to the tune of over $16 billion in factory-to-dealer sales this year, significantly up on 2005’s figures where 104 million wireless handsets sales scooped up total sales of $13.5 billion.

    We’ll be reporting on developments throughout this year’s International Consumer Electronics Show at Las Vegas, so stay tuned!

    International Consumer Electronics Show 2006, Las Vegas (Warning! Cheesey techno track on homepage!).

  • BBC Open News Archive Goes Online

    BBC's Open News Archive Goes OnlineThe BBC has announced its Open News Archive, making archive news reports freely available to the UK public to download and use for free in their own creative works.

    Included amongst the initial offering of around 80 online reports will be footage from important events like the fall of the Berlin Wall, Beijing’s Tiananmen Square protest, the Poll Tax riots, the Piper Alpha disaster and Nelson Mandela’s release.

    BBC's Open News Archive Goes OnlineMade available under the terms of the recently-launched Creative Archive Licence, the footage can be viewed, downloaded, edited and mixed by UK residents – so long as it’s for non-commercial programming (there’s also several other caveats that budding film makers should read first here.)

    The clips will be made available in QuickTime, Windows Media, MPEG1 and MP3 formats to ensure a wide audience, and will cover stories from the past 50 years.

    BBC's Open News Archive Goes OnlineHelen Boaden, Director, BBC News, said: “This trial is an important step in allowing us to share with our audiences the extraordinary news archive which the BBC has recorded over the years. We look forward to getting their reaction.”

    Paul Gerhardt, project director of the Creative Archive Licence Group, added, “The BBC’s telling of those stories is part of our heritage, and now that the UK public have the chance to share and keep them we’re keen to know how they will be used.”

    BBC's Open News Archive Goes OnlineThe BBC already offer nearly a hundred clips in their Radio 1 Superstar VJ archive, and are expected to be releasing further content over its websites in the coming months.

    BBC Open News Archive

  • eBay Scraps Live Pet Sales Online

    EBay Scraps Live Pet Sales OnlineInternet auctioneer eBay have cancelled their plans to allow live pets to be sold on its Web site after receiving a barrage of complaints from users.

    Thousands of irate emails headed eBay’s way after word got out that they were considering lifting their ban on trading live animals.

    This would have been a turnaround from their long held policy of banning the sale of live animals (except fish and snails).

    Over the weekend, an eBay manager posting on an online message board announced that eBay were planning on creating a separate classifieds category, which would feature free ads from animal shelters and paid ads from breeders.

    This prompted a torrent of over 2,000 emails, most of which were deeply unchuffed with the proposal, insisting that the ban should remain in place

    EBay Scraps Live Pet Sales OnlineAs company spokesman Hani Durzy explained, users were concerned that the listings would encourage unsanitary ‘puppy mills’, where animals are sometimes bred in less-than ideal conditions, and that it might prove difficult working out legitimate animal shelters and the get-rich-quick scamsters.

    There was also concern that people might start to breeding dogs to sell for fighting.

    “The feedback was pretty overwhelming,” Durzy admitted, adding, “Farms and for-profit commercial breeders wasn’t something that they wanted to see.”

    eBay

  • Google Buys 5% Stake in AOL

    Google Buys 5% Stake in AOLAfter a flurry of rumours and speculation, AOL and Google have announced that they have sealed the deal on an extended partnership deal, which sees Google shelling out $1bn for a 5% stake in AOL.

    Google were already providing the Web search technology to AOL, and their contract, which was due to expire in 2006, will now be extended by five years.

    Previously, AOL had only earned a share of Google’s advertising revenues through Google’s AdSense program, but under the new deal AOL will now be free to flog both display and keyword-based advertising.

    In a flurry of mutual back-scratching, Google have agreed to offer their technical know-how to ensure AOL sites soar up the search results rankings, with the company ensuring cynical punters that this will only happen through “fair and legitimate means.”

    Google have also lobbed an estimated $300m worth of Google advertising credits into AOL’s overflowing pot.

    Google Buys 5% Stake in AOLNaturally, the synergistic shufflings don’t stop there, with plans being unveiled to make the two companies’ instant messaging tools work with each other and for Google to include AOL video in its video search database.

    The deal seems to be a win-win for both companies.

    Ad-based revenues and traffic from AOL accounted for a massive 10% of Google’s revenues (approx $422m) during the first nine months of 2005, and with the contract due to run out, Google were at risk of losing a major source of income.

    Moreover, the deal sees Google becoming the only other shareholder in AOL along with Time Warner.

    For AOL – who have seen subscribers dropping like flies as broadband grows in popularity – the deal gives them the opportunity to grab a slice of a booming market by acquiring the rights to sell its own online advertising.

    Google Buys 5% Stake in AOLSitting red faced in the corner and looking like a chump through all of this is Microsoft.

    As the new boys on the block in the Web search market, Bill Gates’ boys were mustard keen to find a way to take on Google and Yahoo, and a deal with AOL would have given the company a substantial leg-up in the market.

    Microsoft were reported to have originally approached AOL, waving a fat wad of investment cash and a new search technology contract, but their failure to secure the deal now leaves the company miles behind the big boys.

    AOL

  • Pressure Builds – No Christmas Cheer For BT

    As competition hots-up, no pre-Christmas cheer for BTBT has been hit by two further blows, bringing into stark relief the height of the mountain it must climb to achieve its TV ambitions. Secondarily, drawing into sharp focus the changing landscape for domestic phone calling, as the competition begins to consolidate.

    The bad news for the BT TV proposition, is that BSkyb has got its 8th millionth customer. These customers are, by and large, the sort of customer BT badly needs for its triple play TV offering to be a success. They’re high-delivering ARPU (Average Revenue Per User) viewers that will delight the beleaguered BT finances.

    Sky’s achievement of the 8 million target is also likely to be a blow to the ambitious NTL. Expect little let up from Sky as it battles to reach the 10 million mark by 2010 and continues to push its Sky+ and multi-room offerings.

    As competition hots-up, no pre-Christmas cheer for BTSeparately, a consolidating Carphone Warehouse has been on the acquisition trail and agreed the purchase of Tele2’s UK and Ireland operations, and separately, Onetel.

    The deal with Tele2, the Swedish telecoms company, at a price of £8.5 million plus the £2 million cost of a planned restructure, will add around 188,000 customers in the UK and a further 36,000 in Ireland to Carphone Warehouse.

    The deal appears to makes sense for Carphone Warehouse, and they expect the transaction to add to their earnings in the current financial year. They intend to migrate the purchased companies customers onto its own network, under the TalkTalk brand.

    As competition hots-up, no pre-Christmas cheer for BTThe purchase of Onetel from Centrica for £132 million includes £37.1 million, while will be delivered if Centrica deliver a targeted number of customers in the next three years via its British Gas operations. The Carphone Warehouse will also pay Centrica an additional £22.2 million if higher sign-up targets are met.

    Onetel’s residential customer portfolio is made up of 1.1 million Carrier Pre-Select (CPS), 250,000 indirect access, 60,000 broadband, 40,000 mobile. There are also 50,000 CPS business customers. Carphone Warehouse are upbeat about this purchase too, saying the acquisition will “increase current year pre-tax profits by approximately £4m, and next year’s pre-tax profits by approximately £20m.”

    As competition hots-up, no pre-Christmas cheer for BTHere at Digital Lifestyles, we expect competition to be even fiercer in 2006 as both BSkyb and the Telcos battle to capture high spending subscribers.

  • BT’s IPTV Content Deals: Too Little Too Late?

    BT’s IPTV Content Deals: Too Little Too Late?In the week that BT and Sky both saw their triple play offerings potentially trumped by a possible NTL/Virgin ‘quadruple play’, BT chose to release details of its upcoming content deals with BBC Worldwide, Paramount and Warner Music Group.

    Ian Livingston, chief executive of BT Retail, talked up the deals, “Whether you are a music fan, love films or hooked on drama you will get the best in entertainment when you want it. BT is defining next generation TV.”

    BT’s IPTV Content Deals: Too Little Too Late?Against a backdrop of whispered rumours of delays with Microsoft’s IPTV Edition, the BT service is slated for launch next year.

    BT’s TV service will piggyback on-demand programming, delivered by a high speed Internet connection to a Philips terrestrial Freeview receiver, and the PVR component of the box will hold 80 hours of downloaded programming.

    The service will not be a monthly subscription like that of NTL and Sky, instead it will follow a ‘pay-as-you-go’ model, where individual downloads and viewing can be charged.

    An agreement with BBC Worldwide that covers on-demand rights for BBC programming and charges for viewing, will provoke controversy as the BBC is paid for by a universal levy on TV viewers in the UK.

    BT’s IPTV Content Deals: Too Little Too Late?Problems won’t be confined to BBC programmes if ITV programming is carried, advertisers are bound to be unhappy that time-shifting viewers will skip the paid for messages.

    You might be able to tell that we’re not that excited about this deal. At least BT seems to recognise that viewers watch content rather than technology … or well negotiated deals.

    With so many digital TV homes in the UK subscribed to Sky or cable, we’re just not sure if BT will be able to muscle into the Digital TV space.

    A major question mark hanging over them is whether the content promised so far is enough to encourage current subscribers to switch or, even more difficult, if they can get the so called “digital refuseniks” to join BT’s TV.

  • Sprint, MSpot Stream Full-Length Movies To Mobile Phones

    Sprint, MSpot Stream Full-Length Movies To Mobile PhonesSprint and MSpot, have announced the launch of MSpot Movies, a new service which streams mobile-optimised feature films to mobile phones.

    Perhaps puffing a little too deeply on their hyperbolic inhaler, MSpot Movies are claiming to “bring the magic of the silver screen to mobile phones” with their new service, which offers Nationwide Sprint PCS Network subscribers on-demand access to seven movie genres.

    The streaming movies will be categorised into Comedy, Drama, Horror, Adventure, Westerns, Animated Features, and Movie Shorts genres, with recycled TV shows including “Hearts Afire,” “Conan the Adventurer,” and “Starhunter 2300” (what a mouth-watering selection!)

    Sprint, MSpot Stream Full-Length Movies To Mobile PhonesThe streaming content will be cut up into ‘chapters’ (short segments optimised for a mobile audience) and will also include music concerts and stand-up comedy specials.

    MSpot will be adding new titles weekly, enabling subscribers to watch all of the individual “chapters” of an entire movie at any time.

    It’s the company’s third service offering, joining MSpot Radio and MSpot Music on the Nationwide Sprint PCS Network, with more multimedia entertainment services planned for next year.

    Sprint, MSpot Stream Full-Length Movies To Mobile PhonesAlthough there’s no denying that mobile video is set to grow – Strategy Analytics reckon they’ll be 150 million viewers by 2008 – we really can’t raise much enthusiasm at the prospect of burning up our bandwidth by watching a selection of crap movies on a tiny screen in 5 minute chunks.

    MSpot

  • Huge US Music Downloading Fine Upheld

    Huge Music Downloading Fine UpheldA US federal appeals court has upheld the mammoth $22,500 (£12,760, €18,930) fine slapped on a 29 year old Chicago mother caught illegally distributing songs over the Internet.

    Cecilia Gonzalez’s unsuccessful appeal against a music industry copyright lawsuit will no doubt delight music industry lawyers, who have already filed against thousands of computer users.

    The three-judge panel of the US Court of Appeals for the Seventh Circuit in Chicago weren’t interested in Ms Gonzalez’ arguments that her Internet activities were permitted under US copyright laws.

    Huge Music Downloading Fine UpheldAfter Ms Gonzalez rejected an earlier proposed settlement from music companies of about $3,500 (£1,950 €2,950), a federal judge later filed a summary judgement ordering her to shell out $750 (£425) for each of 30 songs she was accused of illegally distributing over the Internet.

    The mother of five contended she had downloaded songs to determine what she liked enough to buy at retail, adding that she and her husband regularly buy music CDs, with over 250 albums in their collection.

    The appeal panel weren’t impressed, pointing out that because Ms Gonzalez didn’t delete the songs she hadn’t decided to buy, she could have been liable for the 1000+ songs found on her computer.

    “A copy downloaded, played, and retained on one’s hard drive for future use is a direct substitute for a purchased copy,” the judges wrote, adding that her defence that she downloaded fewer songs than many other computer users “is no more relevant than a thief’s contention that he shoplifted only 30 compact discs, planning to listen to them at home and pay later.”

    Huge Music Downloading Fine UpheldMs Gonzalez’s case was part of first wave of civil lawsuits filed by record companies and their trade organisation, the Recording Industry Association of America (RIAA), back in September 2003.

    “The law here is quite clear,” table-thumped Jonathan Lamy, a senior vice-president for the Washington-based RIAA. “Our goal with all these anti-piracy efforts is to protect the ability of the music industry to invest in the bands of tomorrow and give legal online services a chance to flourish.”

    And make lots of money for themselves, of course.

    RIAA

  • Liberty Media Bids For Provide Commerce

    Takeover 2: Liberty’s Bid For Provide CommerceTakeover mania isn’t confined to one side of the Atlantic; Liberty, the media group that includes QVC and holds a majority stake in IAC/Interactive Corp, is buying Provide Commerce whose mission is “To become the leading e-commerce marketplace for the delivery of perishable products direct from the supplier to the consumer,” whatever that means.

    Provide Commerce has a number of branded Websites geared to rapidly ship perishable goods ordered on the Web, with brands including Cherry Moon Farms.

    Liberty is paying Provide Commerce shareholders a 12% premium on Fridays’ closing price valuing the company at $477m, that’s $33.75 for each and every share.

    Takeover 2: Liberty’s Bid For Provide CommerceThe Liberty purchase, is subject to approvals from US regulatory bodies as well as Provide Commerce shareholders, if all obstacles are cleared then the acquisition should complete in the second quarter of 2006.

    John Malone the multi-Billionaire Chairman of Liberty was clear on the acquisition goals, “We believe in the power of video to drive television and web-based retailing businesses and Provide is a compelling addition to our strategy.”

    Takeover 2: Liberty’s Bid For Provide CommerceBill Strauss Provide Commerce’s CEO was equally direct,

    “We look forward to working with the other Liberty Internet and video companies to accelerate profitable growth.”

    Malone is a titan in the media world who rivals Murdoch Senior in terms of reach and ambitions (in fact Liberty holds a substantial share of Murdoch’s News Corp).

    Dr Malone has rarely been wrong footed by developments in the media landscape and we expect he’ll soon be reaping benefits from this deal including the leveraging of IAC/Interactive Corp’s strength in retailing and service sectors alongside potential tie-ins to QVC’s somewhat gullible customers.
    Liberty
    Provide Commerce