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Google Profits Up Fivefold
Champagne corks were popping like manic machine gun fire at Google yesterday as the company reported a thumping fivefold increase in profits in the first quarter.
The Californian search giant purred loudly as it revealed that net income for the quarter ended 31 March, based on generally accepted accounting principles, was $369 million (£193/€282m) or $1.29 (£0.67/€0.98) a share, compared with a measly $64 million (£33.5m/€49m) or 24 cents a share, for the same period a year ago.
Naked execs excitedly rolled around in beds covered in dollar notes* as revenues for the quarter racked up to $1.26 billion (£0.65bn/€0.96bn), a massive 93 percent increase from the previous year.
“This was a very strong quarter for Google,” revelled Eric Schmidt, chief executive for Google, “We continue to execute well and we have been able to take full advantage of the growth in online advertising.”
Internet advertising revenue as a whole is becoming a large, well-fed cash cow, increasing by 32 percent last year to just under $9.6 billion (£5.02bn/€7.34bn), compared with $7.3 billion (£3.81m/€5.58m) in 2003, according to the Interactive Advertising Bureau.
Google’s own sites, which rely heavily on paid search results and on users clicking on ads, brought home $657 million (£343.6m/€501.7m) – 52 percent of the company’s total revenues and a 116 percent increase over the same quarter a year ago.
Revenues generated from Google’s partner sites through its AdSense programs generated $584 million, or 47 percent of revenues, – a hefty 75 percent increase over partner-related revenues a year ago.
They’ve also been bulk-buying new desks and chairs and introducing crowd control around the water cooler at Google, with the company hiring another 461 employees since the end of the fourth quarter last year, bringing the total up to 3,482 full-time employees.
(*we may be exaggerating slightly here)
Google
22 April, 2005
BT Loves Free Wi-Fi Hotspots
Unlike several telecoms companies in the US who are hell bent on blocking free Wi-Fi hotspots, BT has stated that it has “no problems” with the concept.
Although free wireless hotspots are becoming increasingly common worldwide, telcos in Philadelphia and Texas are camping in their lawyer’s offices in an attempt to get hotspots shut down, arguing that it is not in the government’s remit to compete with commercial services.
To a chorus of boos in our office, Andrew “meany” Allison, head of Intel’s mobility group in the UK, spat out; “Governments should do what governments are meant to do: govern. They don’t run, support and maintain networks. That’s for network operators.”
Clearly, Islington Council in London doesn’t agree. They launched a mile-long free Wi-Fi network, dubbed the ‘Technology Mile’, earlier this week.
The network covers the length of Upper Street – one of the busiest streets in Islington – with the Council donating PCs to some local businesses as part of its push to boost economic activity in the area and to encourage local residents onto the Internet.
Chris Clark, BT’s chief executive for wireless broadband approves, telling vnunet.com that he has no problems with free wireless hotspots, and that the more people using the technology the better.
“Free access doesn’t touch us,” he said. “It’s not a market we’re going after. We’re after the business market and in a lot of cases business laptops are locked out of such hotspots for good security reasons.”
Clark does not envisage US-style legal wrangling in the future for the UK and expressed confidence that if more people use Wi-Fi it will drive demand for BT’s services.
Clark also confirmed today that BT will be launching a seamless roaming GSM/Wi-Fi phone by the end of the year, adding that he expects Wi-Fi phones to be “very common”, although not ubiquitous in five years time.
BT
Islington sets up free Wi-Fi zone a mile long
22 April, 2005
Google Introduces Local Search To UK
Web search goliaths Google have delivered a large size nine up the rear end of their fierce rivals Yahoo by being the first to launch a local search service in Britain.
Like its popular US counterpart, Google’s local search service will offer maps and driving directions, and is their first such offering in Europe.
Now in public beta, the service is offered in partnership with the UK commercial telephone directory company Yell, who provide the business phone numbers and addresses.
Users can find local services by simply typing in their query into two boxes, labelled, “what” and “where”.
For example, typing in ‘cameras’ and ‘W1’ will produce a list of camera shops in the London W1 area, complete with addresses, phone numbers, a map flagging up the locations and a clickable link for more info.
“It’s the first time we’re bringing local search to a country outside North America,” said Kate Burns, ad sales and operations manager for Google in Britain, declining to give details about launches elsewhere in Europe.
The cooperation with a telephone directories company is unique to Britain, Burns said.
Frustrated Frenchmen and befuddled Belgians were left to mull over their fate with this enigmatic statement: “We take our European audience very seriously, (but) we’ve got nothing to announce this time.”
Local search is the big hot potato for Web search providers, who are salivating at the prospect of a nice new advertising niche opening up.
Global search advertising revenue is already sending cash tills into overdrive, with US investment bank Piper Jaffray estimating spending to rise to US$7.9 billion (£4.1BN/€6bn) in 2005 from US$5.5 billion (£4.1bn/€4.2bn) in 2004 – with most of the growth coming from international expansion and higher volume.
Google has also unveiled its Google SMS (Short Message Service) in the UK. This service enables users to send queries as text messages from a mobile phone and get information local business, driving directions and dictionary definitions. There’s also a facility to compare online product prices with high street ones.
Phone users will be charged with normal SMS text tariffs for the service.
Google local
Google SMS.
21 April, 2005
Sony, Toshiba May Create Universal Blu-Ray/HD DVD Standard
After years of throwing pans at each other, Sony and Toshiba are set to kiss and make up and develop a universal standard for next-generation DVDs, according to a report in the Nihon Keizai Shimbun business daily.
The twin titans of technology have been busily promoting their own DVD formats, which are billed as offering “cinematic quality” images with the facility to include interactive entertainment.
The bad news is that the two systems are incompatible, so that a movie released on Toshiba’s format would not run on a Sony player and vice versa.
Mindful of the Betamax disaster of the 70s, the two companies have cuddled up in bed together and – after sharing a cigarette – are expected to shortly announce an accord on the joint development of a next-generation DVD.
When asked about the intimate details of the deal, a Sony Corp spokesman played coy, commenting, “as we have said before, we have been considering holding discussions with others over the next-generation DVD format.”
Toshiba were also in the mood to be all moody and mysterious, mumbling on about how “a single format would benefit consumers and we will continue to work toward that goal. We will continue necessary talks to achieve it.”
Next-generation DVD players use funky blue lasers to give a shorter wavelength than the red lasers currently used DVDs and CDs. The higher storage capacity lets the discs hold enough data to provide high-definition quality television pictures.
Two competing formats developed out of this technology, with Sony and Matsushita (Panasonic), introducing the Blu-ray standard in February 2002, with Toshiba and NEC Corp. following with the HD DVD standard.
The format war has already started causing divisions within home appliance makers and movie companies, with companies like Apple, Dell, Samsung, Walt Disney, Sony Pictures and Samsung supporting Blu-ray with Paramount Pictures, Universal Pictures and Warner Brothers Studios coming out in support of HD DVD
The Nihon Keizai reported that Sony and Toshiba had stepped up closed-door negotiations around February to find a resolution to the problem.
After reaching a basic agreement that a unified standard would be desirable, they are now looking to develop a hybrid that takes advantage of each standard’s strengths, the newspaper added.
Sony and Toshiba have already started bending the ears of Walt Disney, AOL Time Warner and other Hollywood movie studios in a bid to win approval for a unified standard and pave the way for the signing of an agreement, the Nihon Keizai said.
And that’s good news for anyone with a large Betamax box in the attic.
Hddvd.org
Blu-ray.com
Toshiba
Sony
21 April, 2005
BBC THREE Trials New Multi-Screen Application
BBC Three viewers will be able to schedule their own Sunday night viewing in a pioneering multi-screen application trial starting on 1 May 2005.
The service will work like a stripped down Video On Demand (VoD) service without the need for a dedicated infrastructure or additional consumer boxes.
From 9.00pm on Sunday nights, digital satellite viewers will be prompted to bash the red button on their remotes and be rewarded with a choice of three BBC THREE programmes, in addition to the channel’s live transmission.
The programmes will be categorised under Dramatic, Funny and Real, with the first night’s offering serving up the first two episodes of Nighty Night; the first and second episodes of the second series of Twisted Tales; and the first and second parts of the second series of Little Angels.
Stuart Murphy, Controller of BBC THREE, explains: “The ‘Best of Three’ multi-screen trial is a bold and ground-breaking new application which offers viewers more control and greater access to the wide range of programmes on BBC THREE.”
“In the future we believe viewers will want to watch their favourite show when they want it and not wait until a scheduler decides to transmit it.
“It’s a key stepping-stone to true video on demand in a free-to-air digital environment, and shows that we are serious about BBC THREE being the country’s most innovative digital channel, which evolves as fast as the audience’s tastes and needs.”
Emma Somerville, the BBC’s Head of Interactive Programming, added: “Interactive TV can really help our audiences engage with the BBC’s TV channels.”
“The ‘Best of Three’ multi-screen will test new ways of giving viewers more flexibility over when and how they want to enjoy our programmes.”
Viewers will be encouraged on air to try out the new service and the trial will last for six months.
The BBC hopes that the service will prove a showcase for the multi-genre offering of BBC THREE content and enable them to get more value from the full range of programmes that the channel broadcasts.
If all goes to plan, viewers will be encouraged to sample programming that normally wouldn’t whet their tele-whistles and also use the service to watch programmes that they might have missed.
If the trial is a hit, the BBC plans to roll out this application on Freeview and digital cable.
BBC Three
19 April, 2005
BBC Radio Times Partners With Gemstar Guide Plus+ EPG
Old school TV listings magazine The Radio Times, has announced a partnership with Gemstar, the Murdoch-owned electronic programme guide (EPG).
The deal – the first TV listings partnership of its kind – allows the Radio Times to provide listings, contents and reviews to the subscription-free, seven day Guide Plus+ EPG.
Gemstar will be building its EPG into a number of electronic devices such as digital TVs and DVD recorders. The EPG will allow consumers to browse and select their TV viewing for the next seven days.
Users will have access to seven-day listings, programme recommendations and a database of 24,000 film reviews with star ratings, with the service being compatible with all major channels on the terrestrial, cable, satellite and digital terrestrial platforms.
Simon Adams, deputy-managing director of Gemstar-TV Guide’s European division, said the move would benefit users by providing a “quick, easy, and free way to intelligently navigate what is an increasingly complex entertainment environment”. This partnership kicks the Radio Times firmly into the new digital age of television, with the company selling advertising on Guide Plus+ and boosting awareness of the EPG by plugging it relentlessly in its print magazine.
All concerned plan to expand the offering, with on exmaple given as onscreen adverts might eventually include clickable ads for programmes, letting viewers jump straight to the selected broadcast.
It is hoped that this synergetic partnership will expand what choca-mocha-latte supping advertising execs call the “brand heritage” of the Radio Times, which currently shifts over 1.1 million printed copies a week.
The BBC owned brand – the UK’s oldest radio and television listings magazine – has a presence across a range of media, with their website attracting nearly 600,000 unique users per month, and a text messaging service which allows readers to access listings. Radio Times was named as Britain’s “most reliable” media brand back in 2002.
Gill Hudson, editor of the Radio Times, declared: “There is now no format not covered by Radio Times – you can access RT via mobile, your PDA, online, and now the Guide Plus+ EPG.”
The Radio Times recently spent £1m (€1.44m) on a marketing campaign to promote the magazine in the face of a price war between the UK’s best-selling title, What’s on TV, and rival TV Choice. Clearly, the BBC hopes that this move into digital listings will provide a competitive edge.
Radio Times
Radio Times named Britain’s “most reliable” media brand
19 April, 2005
BSkyB Announces HDTV Partners
British Sky Broadcasting (BSkyB) has announced that it has signed a number of further contracts with technology and equipment suppliers ahead of the forthcoming launch of its High-Definition Television (HDTV) service.
Following last month’s announcement that Thomson would be the initial manufacturer of Sky’s HDTV set-top box, the latest agreements put BSkyB on track to launch HDTV in the UK and Ireland in 2006 – notably four years ahead of the BBC’s slothful launch date in 2010.
The agreement will see Sony constructing and equipping a new HDTV studio at BSkyB’s Isleworth headquarters and kitting out additional equipment for edit suites and dubbing facilities at the same site.
Lovers of spec sheets will be thrilled to learn that the Sony studio equipment will include the latest HDC-1500 studio cameras and over 60 HDCAM and HDCAM SR format VTRs, complemented by MVS-8000A series multiformat production switchers and DVS-8000 digital effects plus Sony HD LCD monitors.
Additionally, Sony will smooth BSkyB’s transition to HDTV production with a “this button does that” staff training package.
BSkyB will also be deploying Tandberg Television’s MPEG-4 part 10 (H.264/AVC) video encoding and distribution system for the launch of its HDTV service.
The studio will be fitted out with Tandberg Television HD video head-end with statistical multiplexing with Tandberg EN5990 HD MPEG-4 AVC enabling efficient bandwidth utilisation and high picture quality.
If that roll out of spoddy specifications hasn’t got you excited enough, you’ll be pleased to learn that even more equipment lists will dispatched from BSkyB headquarters in due course. Whoopee!
Alun Webber, BSkyB’s Group Director of Engineering and Platform Technology, said “The launch of HDTV is the most significant development for BSkyB’s broadcast infrastructure since the launch of Sky digital in 1998. These supplier contracts keep us on track to launch HDTV in 2006 and ensure that Sky customers continue to receive the highest-quality viewing experience available.”
Sky is promising a full set of HDTV programming channel line-up when the service goes live, including sports, movies, entertainment and documentary programming.
The system will support both 720p and 1080i picture formats, with broadcasters being able to choose the format which is most appropriate to their individual requirements.
Initially, Sky’s HD receivers will have both a digital HDMI (High Definition Multimedia Interface) and an analogue component connector for viewing HD content.
HDMI delivers the best possible picture quality to a HD display by maintaining an all-digital connection to DVI equipped displays possible using a suitable adapter cable.
Notably, when Sky’s HD content is viewed on a display using the receiver’s HDMI connector it will be protected by HDCP (High-bandwidth Digital Content Protection).
HDTV is already taking off in the States and with the BBC dragging its heels with their own implementation of HDTV, this move by Sky may prove to be a significant one.
Sky Drops Microsoft Windows Media For MPEG-4 On HDTV
Sky
15 April, 2005
BBC Launches Creative Archive Licence
The BBC has moved a step closer to establishing a ‘public domain of audio-visual material’ with the launch of its ‘Creative Archive’.
The BBC, Channel 4, the British Film Institute and the Open University have teamed up to create the Creative Archive Licence, which aims to pave the way for the legal downloading of film, TV, radio archives and digital content via the Internet by the public.
The four partners in the Creative Archive Licence Group have issued a call to other organisations to join them, with Teachers’ TV and the Arts Council England already committing themselves to join the gang.
The Creative Archive Licence will give a new generation of media users legal access to material which they can use to express their creativity and share their knowledge – all completely free of charge.
The Licence follows on from pledges in the BBC’s Building Public Value document which committed the broadcaster to ‘help establish a common resource which will extend the public’s access while protecting the commercial rights of intellectual property owners.’
Mark Thompson, Director-General of the BBC liked the look of it: “The Creative Archive Licence provides a unique solution to one of the key challenges of rights in the digital age, allowing us to increase the public value of our archives by giving people the chance to use video and audio material for their own non-commercial purposes.”
The Creative Archive Licence offers an innovative approach to the rights issues that often affect the use of archive material, allowing people to download and use footage and audio for non-commercial purposes.
Each user will agree to abide by the licence conditions before gaining access to any of the available material.
The hope is that soon-to-be launched pilot download schemes will help fuel creativity activity across Britain, with clapperboard-toting types using the footage in personal projects, classroom presentations and their own arty-farty creations.
The long term aim is for work created under the licence to be uploaded back to the originating Website and then shared with others across the Internet.
Amanda Nevill, director of the British Film Institute, liked the cut of the project’s jib: “The Creative Archive Licence gives UK citizens increased opportunities to access and engage with moving image material from the bfi National Film and Television Archive. The project is an important step forward in enabling people to create their own works and explore the potential of digital film-making.’
The Creative Archive Licence hopes to emulate the success of the US based Creative Commons system, where less rigid copyright arrangements have stimulated artistic activity.
The BBC will initially be making footage from natural history and factual programmes available under the licence later this summer, and the BFI will be releasing a package of silent comedy, early literary adaptations, newsreel footage and archive footage of British cities in the early 20th century.
Interestingly, because the BBC is license fee funded they are releasing the content to UK-only Internet users, relying on a GeoIP solution to allow downloads from only UK hosts (not that we think it would be particularly hard for determined folks to circumvent those restrictions).
Creative Archive
14 April, 2005
IPod And iBook Sales Send Apple Profits Skywards
Stratospheric iPod sales send Apple executives into raptures of hugging joy, with profits almost quadrupling in a year.
The company reported a net profit of US$290m on $3.24bn in revenues for the fiscal quarter ending 31 March, comparing with profit figures of US$46m on sales of US$1.909bn in the same period last year.
“Apple is firing on all cylinders, and we have some incredible new products in the pipeline for the coming year,” frothed CEO Steve Jobs in a statement.
Shipments of Apple computers were up 43 per cent over last year to 1.07 million units, with the Powerbook line of high end notebook computers showing a 34 per cent increase in units shipped relative to last year.
The Power Mac desktop computers were among the worst performers, with year-over-year shipments declining by 19 per cent.
The company said it sold 5.3 million iPods (up 558 per cent on the same period last year) and 1.07 million Macintosh PCs last year.
These figures reveal that Mac sales are up by nearly 40 per cent with iPod sales are up five-fold.
Apple also revealed that its iTunes Music Store has now sold more than 350 million songs worldwide since April 2003, with the combined sales of song downloads, iPod-related accessories and services accounting for US$216m in revenues.
Although sales of iPods increased by 16 per cent, revenue from the product dropped by 16 per cent after Apple added the lower-cost iPod Shuffle to its range.
Apple’s bulging coffers can expect a further boost from sales of the new Mac OS X 10.4 Tiger upgrade, which will go on sale on 29 April.
Apple
14 April, 2005
Apple Tiger OSX Launch Date Announced
Apple Computer has announced that the latest major update of its Mac OS X operating system, code-named Tiger, will be available on 29 April.
Modestly described as “The World’s Most Advanced Operating System,” Apple’s highly anticipated update to Mac OS X (now at version 10.4) will be available to mobs of grasping Mac huggers on Friday, 29 April.
With over 200 new features on offer, Apple aficionados should find the upgrade worth the price, with one of the most eagerly awaited new features being a sophisticated new search facility called ‘Spotlight’.
This powerful core application lets users search just about everything on their system – files, emails, contacts, images, movies, calendars and applications – with the results appearing “instantly”.
Stealing a march on their Microsoft rivals, Spotlight can also rummage around inside the metadata of files and organise search results by criteria, such as the kind of content, author, edit history, format, size etc.
The new OS will also feature Dashboard, an accessory desktop application letting users display a variety of real-time information from the Internet, including stocks, weather forecasts, track flights and currency rates and other third party apps.
Apple’s CEO Steve Jobs was clearly excited by the new OSX upgrade: “Tiger’s groundbreaking new features, like Spotlight and Dashboard, will change the way people use their computers, and drive our competitors nuts, trying to copy them.”
Other updates include an updated Safari browser offering built-in RSS support, improved connectivity with other desktop operating systems and support for the next-generation video-compression standard H.264 (allowing multiple users on the video-conferencing program iChat).
Mac OS X version 10.4 “Tiger” will be available on 29 April from 6:00 pm at Apple’s retail stores and through Apple Authorised Resellers for a suggested retail price of £89 (US$129, €129)
Apple will also be offering a “family pack” version of the software, for £139 (US$199 €199), serving up to five computers in a single residence.
Apple OSX
13 April, 2005