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Google Buys 5% Stake in AOL
After 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.
Naturally, 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.
Sitting 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
21 December, 2005
BBC iMP Trial Extended – Trialist React
The BBC has decided to extend the trial for the iMP Player until 28th February 2006, telling trialists that the extra time will enable it to “understand what you want from the service and how you are using it”. A new upgrade of the software is due to be rolled out to the participating trialists in January.
Once this is over, the data from the trial will be processed to form a ‘Public Value Test’. That will then be put to the BBC Governors, who will use this to make a decision on the viability of launching a service.
We’ve had mixed report from iMP trialists, which we found surprising – we thought everyone would be totally wowed by it, watching it 24 hours a day.
The not-watching-24-hours-a-day could be explained by the frustration felt by a lot of trialist – that the content available is somewhat limited choice, and the content’s seven day expiry time.
Content-wonks, like us and we suspect you, are aware that these limitations are a result of the need to negotiate and pay for the rights to distribute Radio & TV content via the Internet. Members of the public, who have other lives to lead, are naturally less aware of the reasons for the restrictions.
Frankly it is easier (and cheaper) to obtain the relevant permissions for BBC content, than independently produced content and brought in content, such as films.
The BBC’s reaction to such sniping is consistent, if not a little bland
- This is a research trial
- Their main focus is to assess the impact that iMP has on viewing habits
- They want to understand if there’s possible appetite for such a service
We think that providing a good range of high-quality content is a key to encourage users to try out the iMP and importantly, keep them using the application during the trial. Otherwise interest will fade – which is the experience we’ve heard from many trialists.
Questions have been also raised on the iMP users forum about the integrity of the Microsoft DRM software, designed to limit the use and copying of the downloaded programmes. Strong security will be key, if the service is to be widened to include non-BBC content.
It will be interesting to see if the service survives, and how the BBC’s own commercial trading unit “BBC Worldwide” reacts, having signed a content deal with BT whose own service is due to launch in 2006.
BBC iMP
21 December, 2005
Pressure Builds – No Christmas Cheer For BT
BT 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.
Separately, 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.
The 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.”
Here at Digital Lifestyles, we expect competition to be even fiercer in 2006 as both BSkyb and the Telcos battle to capture high spending subscribers.
20 December, 2005
MP3 players: Our Festive Selection
Creative Zen Vision:M
Although looking like a near-exact copy of the video iPod, the 30 gig Zen Vision is a fine player in its own right, sporting persuasive features not found on its rival.
Sharing near-identical physical dimensions as the iPod, the Zen manages to add a composite video out connector for playing video content on TVs, an integrated FM radio with 32 presets, voice recording, alarm clock, groovy customisable themes and the ability to synchronise Microsoft Outlook data, such as contacts, calendar and tasks.
The player’s a versatile chap too, with the Vision:M outgunning the iPod by supporting a wider range of formats, like MP3, WMA and PlaysForSure audio formats and MPEG1/2/4, DivX and XviD, Motion JPEG and WMV for video.
Battery life is claimed at four hours in video-playback mode (twice as long as the iPod) and fourteen hours for audio.
Expected on the streets now, the Creative Zen Vision:M will sell for around $350 (~£197, ~€291).
Creative Zen Vision:M
Sony NW-A1000
It’s taken Sony a long time to come up with a serious challenge to iPod’s dominance, but the new NW-A1000 could be the one to unseat the Nano.
Resplendent in an unusual organic form factor, the player sports a translucent acrylic clad exterior that reveals a large, bright display lurking below. It looks fantastic, and it’s refreshing to see a radical new design coming through in a market dominated by iPod-alikes.
The palm sized player (88 x 55 x 19 mm) comes with a built in 6GB hard drive and supports MP3 files as well as Sony’s ATRAC3 and ATRAC3+ audio formats. Battery life is claimed at 20 hours (although several reviews have found that figure to be wildly optimistic).
Thankfully, Sony have finally ditched the awful Sonic Stage software needed to transfer files over the USB 2.0 connection, but the new Connect Player software still has some way to go to match the simplicity and ease of use of iTunes.
The player’s already available in Europe and North America, priced around €250 and $250.
Sony
Apple iPod Nano
Introduced in September, Apple’s fabulously designed iPod Nano has already proved an enormous hit, with its teensy-weensy dimensions and stunning looks crushing every flash-based player in sight.
Sure, it’s not perfect – there’s no video support and the thing scratches easier than a Shakin’ Stevens 45 – but it features Apple’s superb Click Wheel user interface and offers a crisp 1.5″ colour screen for viewing photos.
Coming in 2GB and 4GB flavours, the diminutive player (3.3 x 0.98 x 0.33 inches) supports MP3, AAC and Audible 2, 3 and 4 formats and is compatible with the iTunes online store.
Microsoft Outlook calendar and contacts info can be synchronised via iTunes 5, and with the player sporting the same 30-pin dock connector as the iPod and iPod mini, there should be no shortage of accessories.
There’s a nippy USB 2.0 port onboard and battery life is claimed at a healthy 14 hours.
Starting at €200 (~$240 ~£135), the Nano is available in just black or white for now.
iPod Nano
19 December, 2005
Doctor Who Interactive TV Christmas Special Planned
The BBC is hoping to get Dr Who fans reaching for their red buttons en masse with a video-rich interactive TV application scheduled to run straight after the airing of the Christmas Day special (7:00PM GMT).
Dubbed “Attack of the Graske,” the application hopes to get sofa-loafing viewers taking part in an interactive adventure with the aim of preventing an evil alien creature, called the Graske, from taking over the earth.
It looks that the BBC has invested muchos cash into the venture, employing live-action video and “state-of-the-art” special effects produced at the high end visual effects studio, The Mill.
Christmas-pud gorged viewers will be tasked with using the arrow keys on their remote controls to perform a series of challenges which will test observation, dexterity, memory and – according to the BBC – their bravery.
There’ll also be an opportunity to fly around in the Tardis with the Doctor “on hand to give advice, encouragement, and even step in when things go wrong.”
Produced in Cardiff by BBC New Media and BBC Wales, producer Sophie Fante commented, “Attack of the Graske gives the viewer the unique opportunity to immerse themselves fully in the world of Doctor Who.”
“We aimed to make the challenge with the same scope and feel of the main series and, in ‘Attack of The Graske,’ the viewer finds themselves not only flying the Tardis with the Doctor but fighting the Graske on the planet Griffoth and hunting him out in Victorian London,” she added.
Filming the program involved creating an authentic Dickensian Christmas scene, complete with snow, in Cardiff.
We can’t wait to watch this latest installment of the highly rated Dr Who series and are hoping to witness another kind of winter wonderland the day after when the mighty Cardiff City FC take on Plymouth.
Dr Who
19 December, 2005
Google Music Search Launched
Google have thrown the switch on the latest addition to their search results – music.
Searching is either directly to Google Music Search, or if the music/band/song is well enough known, results can also appear in ‘normal’ Google results. Either way, it’s currently only working on the US (.com) site.
Initial music search results are split down to three sections Artists; Album; Songs. The information available is comprehensive.
- Artists not only showing all of their records, but links through to Google images of them; discussions about them on Google Groups; and their site.
- Albums give the break down of each of the tracks, and reviews that are available. A list of where the record can be bought is shown, complete with the comparative price they are charging against the name of the shops. Links to digital delivery sites like Apple’s iTunes and Real Rhapsody are also shown.
- Songs show the start of the lyrics, linking to source for the full versions, links to any other version of the song as well as links to the expected artist information.
15 December, 2005
Mac OS X Tiger for Unix Geeks: Book Review (72%)
Summary
If your hardcore linix/unix and want to know the Mac – 72%.
Non-unix heads need not apply.
UK List Price £24.95
UK Amazon Price £17.46
US Amazon Price $23.07
Review
This book covers the Mac OS X 10.4 (aka Tiger) for geeks who have come from a Unix/Linux environment and are happiest using the command line, not sexy GUIs (graphical user environments).
If you didn’t know, we’ll let you into a little secret – Mac OS is really Unix underneath. This book exposes the basic programs and utilities that are normally hidden behind shiny Aqua interface that is the Mac OS GUI front-end.
As an example – want to burn a CD? Of course you can do it using the GUI, but it’s also possible to use the “hdiutil”program on the command-line interface (CLI). Truth be told, that’s all that’s really happens when Mac OS is using all along.
One of the advatnages of using CLI approach is that when used in the shell, scripts of commands can be used to chain together a string of them, enabling automation.
Be aware, it’s not a book for the casual Mac user, but if you get excited about the insides of an OS (which some of us at Digital-Lifestyles do admit to), you’ll find plenty of material.
By way of examples of how detailed it can get – please peruse the following –
Setting up printers through CUPS (a modern printer interface for Unix printers, which comes with Mac OS)
How to compile 64bit code using (GNU Compiler Collection) (GCC);
Using Spotlight’s metdata;
Library linking and porting Unix software;
Using the X Windows System on top of Mac OS X;Installing Fink and DarwinPorts to download and install common Unix and X11 software;
Even using PearPC to run Mac OS X on an x86-based PC.
Bits like the section of PearPC might be a bit over the top for even a normal Unix user, but it does work. If you just want to develop Mac OS programs, this could be a way to do it – although it will be slowly as the emulator isn’t very fastest.
Only recommended if you’re an old hand at Unix/Linux and want the same experience on a Mac.
Summary
If your hardcore linix/unix and want to know the Mac – 72%.
Non-unix heads need not apply.
UK List Price £24.95
UK Amazon Price £17.46
US Amazon Price $23.07
ISBN 0-596-00912-7
O’Reilly
Brian Jepson & Ernest E. Rothman
15 December, 2005
Intel Napa: Dual-Core Laptop Chips
Intel has been bigging up its next-generation laptop technology, claiming they will use 25 percent less power while retaining class-leading performance.
Encouraged by a fast-growing laptop market, the boffins at Intel have been busily overhauling their popular Centrino technology, proudly unveiling ‘Napa’, a new Centrino featuring Intel’s new Yonah microprocessor – the first mobile chip to boast two cores.
The chip is the result of the latest whiz bang technology which is capable of etching circuitry more than 100 times thinner than a strand of Bobby Charlton’s comb-over.
According to Intel’s marketing chief for mobile platforms, Keith Kressin, this process means that the Napa system (which includes the Yonah processor, its attendant chipset and a new wireless chip) will soak up 28 percent less power than its predecessor while managing to perform 68 percent better
“There are benefits to corporate users, there are benefits to consumers,” he added, probably before going on about the benefits to the birds and the bees too.
Twin core machines are growing in popularity (we’ll be getting one shortly), with the technology letting users perform several tasks at the same time without the machine grinding to a halt.
For example, one core could be busying itself by updating a complex spreadsheet, while the other core could be taking care of some heavy duty Photoshop work.
Intel are hoping that the improved battery life will prove attractive to customers too,
The tough challenge for Intel’s engineers is shoehorning ever more powerful processors into ever-slimmer laptops while improving battery life and managing to dissipate the processor’s heat.
In the last quarter, Intel scooped up an estimated $2.3 billion from sales of laptop processors, with laptop chip revenue providing a growing slice of Intel’s business.
Sales accounted for a third for a third of total processor sales in the third quarter, up from around 27 percent a year earlier.
Centrino
14 December, 2005
Microsoft And MCI Look To Take On Skype
With a fearful eye on Skype’s runaway success, Microsoft has joined the stampede to offer Internet-based telephony services by announcing a cut price, pre-paid PC-to-phone service, the result of a deal with the US telecommunications group, MCI.
The new service, combining MCI’s existing VoIP network service with Microsoft’s software, will regale under the less-than-snappy title of “MCI Web Calling for Windows Live Call” and is expected to launch in the first half of 2006.
The service will work through Windows Live Messenger, the soon-come successor to the MSN Messenger instant messaging service which currently boasts more than 185m active global users. It is thought that VoIP technology from recent Microsoft purchase, Teleo, will be used.
In recent months, Google, Yahoo! and eBay’s Skype unit have all chipped in with their own cheapo PC-to-phone VoIP (Voice over Internet Protocol) services.
By teaming up with a powerful ally (PCI is being acquired Verizon Communications), Microsoft are clearly hoping to shove their hefty size nines into the lucrative VoIP market before it runs away from them.
The calling costs of the Microsoft/MCI service will be comparable to their rivals, with users paying 2.3 cents per minute for calls within the US and between the US and other countries.
Yahoo’s service – bundled in with its IM service – is expected to charge 1 cent per minute to call a phone in the United States from a PC outside the country, with calls to about 30 other countries costing about 2 cents per minute.
Similarly, Skype, the current big boys of the PC-to-PC VoIP market, are offering calls for about 2 cents a minute from a PC to a phone in the US other countries.
Taking a leaf out of Skype’s service, Microsoft/MCI customers will also be able to purchase prepaid calling cards and make calls to ordinary fixed line an mobile phones from entries in their contact list.
The service is currently undergoing limited beta trials in the US, with France, Germany, Spain, and the United Kingdom trials expected shortly.
We’ll have to wait until the product officially launches to get the final details and pricing schemes, although Microsoft and MCI have already stated that users will eventually be able to call more than 220 countries.
MCI
14 December, 2005
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.”
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.
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.
13 December, 2005

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