European Mobile Users *Heart* The Web, US Not So Keen

European Mobile Users *Heart* The Web, US Not So KeenEuropean mobile phone users are far more likely to use their handsets to access the web than their US counterparts, according to a new comScore Networks study.

The comScore Mobile Tracking Study revealed significant differences between Europeans and Americans, with 29 percent of Europeans regularly getting online with their mobile phones compared to just 19 percent in the U.S

Breaking the European figures down, over a third (34 per cent) of Germans and Italians use their phones to access the web, followed by France with 28 percent, Spain with 26 percent and the UK with 24 percent, compared to just 19 percent for the USA.

The comScore Mobile Tracking Study also showed that geezers are more likely to access the Web from their mobile phones than women (probably looking for football scores, pubs and pr0n).

Nokia proved to be the most popular phone in Europe for accessing the web, bagging a market share ranging from 50 percent in Italy to 22 percent in France.

In the States, Motorola pushed ahead with 26 percent of the market compared to second-placed Nokia’s 17 percent share.

European Mobile Users *Heart* The Web, US Not So KeenPortal sites were the most popular destinations for mobile surfers, with Google, Yahoo! and MSN leading the way, with branded Web sites set up by the phone operators, such as Vodafone, o2 and T-Mobile also proving a hit.

“Three-quarters of American mobile Web surfers access content from the leading online portals such as Google, Yahoo! and MSN compared to only thirty percent of Europeans,” observed Bob Ivins, the big cheese of comScore Europe.

“In Europe, the mobile Internet appears to mirror the dynamics of the fixed Internet,” said Ivins.

“Google remains strong but the other U.S.-based portals achieve much lower penetration, facing stiff competition from local competitors – in this case the mobile providers – who have the structural advantage of a degree of control over the access point and interface from the mobile phone,” he added.

comScore

Orb MyCasting on Nokia N80 In US

Orb MyCasting on Nokia N80 In USOrb MyCasting has been grabbed by Nokia to be bundled in with the Nokia N80 Internet Edition, in the US only.

When US N80 owners are swanning around, they’ll be able to watch live TV, videos, listen to music and podcasts and video images on their PC. Not just that, but they can set programs to record on their PC from their mobiles.

The TV and media companies have not, to say the very least, been particularly keen on letting people do this. We’ll see if they come out against Nokia.

Back in August this year, Orb MyCasting were keen to “share”, that 19 months after the service was launched, they’ve had over 1.5m hours of digital media transfered over their service – equivalent to 125 years of media-idge. Interestingly up to 45 minutes per user per day, on average.

Orb has similar deals with companies such as AMD, Vodafone, Hauppauge, Intel and Creative Labs.

Programming video recordings is not unique – Sky TV has been offering this since July this year through their Mobile Sky+ Programming

Orb Networks

Yes, Google Buying YouTube: YouGleTube? GoogleTube?

Yes, Google Buying YouTube: YouGleTube? GoogleTube?As we\\’d previously as conjecture, Google has announced that it will be buying YouTube. The price is slightly above the rumours at $1.65Bn (€1.31Bn, £0.88Bn). It\\’s an all stock deal, with no money changing hands.

YouTube has been a fast-growing phenomenon that only started in February 2005, a mere 19 months ago.

Formed by some of the people who were in another similarly sale-price company, PayPal, which went for $1.5Bn to eBay, including Roelof Botha the former CFO of PayPal, who fortunately became a partner at VC company, Sequoia Capital partner. The other two were Chad Hurley and Steve Chen. Not much has been heard about them, so it\\’s worthwhile watching the Charlie Rose interview with them.

Yes, Google Buying YouTube: YouGleTube? GoogleTube?

History (short)
In the early days, many people couldn\\’t understand how they would survive long-term given the speed that they were burning through money.

Back in November last year, long before their explosion to playing 100m videos a day, YouTube was shifting 8 terabytes a day. That kind of bandwidth is very expensive.

The founders have a fair few quid in their pockets after the PayPal sale, but in November 2005 they raised $3.5m from Sequoia Capital, which was followed up in April 2006 by further funding of $8m was also supplied by Sequoia.

See how Chad and Steve break the news to their users.

Given the sale price (don\\’t forget $1.65Bn), the return for the investors is tremendous. As the company is closely-held, ie it\\’s shares aren\\’t publicly available, we don\\’t know how much was put in by the funders, but taken at face value, the $13.5m that was put in by Sequoia returned upto 100 times their investment. Not bad for 19 months.

Copyright issues
There\\’s been much controversy within media companies as they\\’ve objected to their content being uploaded to YouTube. Given that video has been uploaded at the rate of 65,000 a day, the only way that YouTube has been able to stay on top of new copyrighted material is by removing it when complaints have objected.

Google Video has been less concerned with similar pieces of video, probably due to their financial muscle and less need to feel threatened by the media companies legal departments. Expect a long list of deals like Warner Music\\’s

Of course, most of the material on YouTube is people making their own videos and uploading it, a few of which have become stars on the service and a couple mega-stars being signed by Hollywood agents.

For the latest (brief) views on the deal of Hurley and Chen have just hit Reuters.

DiddyTV: YouTube Gains A Paying Partner

In true online video blog style, the announcement was made by Mr Diddy (not one of Ken Dodd’s little friends), but differing from the norm, he’s filmed walking in to a Burger King and happens to drop their catch phrase a couple of times while order his burger to “have it his way”.

Interestingly Mr Diddy says that he’s going to “Buy a channel on YouTube,” so we’re assuming that there’s money involved, especially as Mr Diddy refers to “The Contract” in his video piece.

Also of note, is that Mr Diddy has his own URL on YouTube – YouTube.com/diddyTV – certainly the first that we’ve seen that uses such a short form.

There’s also a great spoof of Mr Diddy’s video by Lisa Nova.

Details of the deal between Mr Diddy and Burger King haven’t been disclosed, but we’d imagine that it’s going to be worth more that a couple of orders at their stores, even if his entourage are ordering large.

Of course, this big step up by Mr Diddy has absolutely nothing to do with the new album that he’s releasing this month and is cunningly blip-cut into his video pieces.

We attribute much of Mr Diddy’s knowledge and acceptance of YouTube down to Ryan Leslie, who is part of Mr Diddy’s posse (which we believe is the common parlance). Ryan has been using MySpace and YouTube for a long time to promote himself, his label Next Selection (for life) and his artists like Cassie. We’ve spoken about his work in many consultancy sessions that we’ve done with media companies – and frankly have great regard for the way he’s used the medium, such as his idea to get people to post their own lip-sync video on YouTube.

The absolute proof of this is Mr Diddy’s message to Ryan saying that he’d “finally talked him into it,” asking him to send over some of his friends to Mr Diddy’s Myspace. To show how these things roll, you’ll note that Mr Diddy doesn’t have Ryan in his Top 16 friends on his MySpace. You may also note that Mr Diddy has had over 10m plays of his tracks – some 4m of which for Come To Me, that was produced by Ryan Leslie. Where’s the friendship?

Google interested in buying YouTube?
Over the weekend there has been much chatter about YouTube being bought by Google, after it was rumoured by the WSJ. The figure banded around was $1.6Bn.

This would be the most expensive purchase that Google has made. Up until now they’ve been very smart and picked up other compaies at early stages for relative small change. The rumored figure for Blogger was $30m.

Google Video hasn’t been the boon that they had hoped it was going to be. Buying YouTube will take Google into the forefront of serving video online and with the $10Bn they’ve got in the bank, not an unfeasible amount for them to pay for it. When put into historical context, it appears a pretty cheap price – don’t forget that Yahoo paid $7.5Bn for broadcast.com back in the Web 1.0 days.

BTPodshow: The How and Why

A few week back, BT confirmed that they have closely tied themselves with US podcast aggregator, PodShow, so closely in fact, that they’ve stuck BT at the front of PodShow domain to form BTPodShow.

We were at the launch of the service a few weeks ago and chatted to Gavin Patterson, group managing director, consumer division and group marketing, BT; Adam Curry, President and Co-founder, PodShow and Ron Bloom, CEO and Co-founder, PodShow. Strangely for the launch of a podcast network, we were the only ones there recording interviews.

Looking for the podcast interviews? They’ll be available in part two tomorrow.

Rather than just rattle off the news, we felt it was worthwhile digging a bit deeper and understand the How and Why of the deal.

What makes this interesting?
Quite a few reasons really. Not the least being that, showing a change of approach, BT aren’t making the service exclusive to only their network – their normal approach to try and encourage people to subscribe to their DSL service. BTPodShow will in fact be open to anyone in the UK.

This alone shows a major shift within BT that shouldn’t be underestimated. It demonstrates an understanding that, although they dominate broadband provision in the UK (with nearly 3m accounts of their own, without all of the BT Wholesale lines sold via other UK broadband providers), they can’t own the whole market.

Having acknowledged this, they’ve clearly decided that they just as well make some income from the people who don’t buy broadband from them.

Where does the income come from?
While the financials of the deals haven’t been disclosed. We understand that there will be a revenue share between the two parties, expected to mostly come from advertising income.

The PodShow side of the business is responsible for finding, maintaining and managing the relationships with the advertiser. At launch they reported that they had 40 global brands lined up to advertise on the network. If these are unique to the UK version, or are extension of relationship they already have with their previous site isn’t clear.

Why this deal. Why now? BTVision
We think a major reason is BT Vision, their soon to be launched ipTV service.

BT have recognised that the current fodder broadcast on TV, will not continue to satisfy the wants and desires of the public in the future. In the words of BT’s consumer division group managing director, Gavin Patterson’s words, “The trend to user-generated content, and social media networks is clear cut. We see ourselves as a distributor of content. What we anticipate is more people wanting get involved with creating content.”

To fill the gap left by the dissatisfaction with ‘normal TV’, they have to open a collection channel for the content to flow to them and then build a collection of User Generated Content (UCG). While they could build PodShow’s technology themselves, it’s clear that BT don’t want to miss out on this, wanting to get into this area quickly, as confirmed by the speed at which they put this deal together.

We wondered if the higher resolution video might not be put out on the Website, but reserved for BTVision, to which Patterson said, “The experience that people have over the Internet will not be sufficient for the TV space. I anticipate it will happen.”

The advantages for PodShow are obvious. If they export this idea to any other country, they’ll be able to hold BT up as their first partner, something that really can’t be beaten.

As BT have a near monopoly on broadband and land line provision in the UK they can expose BTPodShow to the 17m ‘customer relationships’ they have, not just to encourage people to go to BTPodShow to watch the content, where they’ll make income from advertising, but to encourage those same people to produce and upload content.

Moves like this cannot help but strengthen BT as a media brand in the mind of the public – especially the youth. Vital for their service growing in the future.

Continued in the concluding piece, covering the advantages for PodShow and the chances of success of the service.

UK Internet Gambling Firms Hit By US Online Betting Ban

UK Internet Gambling Firms Hit By US Online Betting BanMillions of game-toughened poker faces are showing signs of impending blubbering as the US Congress unexpectedly passed anti-online gambling laws last week.

Moreover, the new laws are set to hit Britain’s Internet gambling companies hard, with many of the US big players being based in the UK.

Shares of internet gambling sites like PartyGaming, Sportingbet and 888 plummeted as the new legislation made it unlawful for credit-card companies to collect payments for transactions with online-gaming sites.

The laws – contained in The Safe Port Act – are now just a George W. Bush signature away, with the President expected to put pen to paper within the next two weeks.

UK Internet Gambling Firms Hit By US Online Betting BanThe new laws will wipe out US revenue for London-based online-gaming companies, with PartyGaming saying that they’d suspend business with US residents as soon as the law takes effect.

For PartyGaming it’s a calamitous blow. With more than half of the company’s revenue coming from US residents, share prices plummeted by 60 per cent, while 888Holdings – who enjoy a similar percentage of US revenue – saw its share price crash 45 per cent.

In a Stock Market announcement, the company said:

UK Internet Gambling Firms Hit By US Online Betting Ban“After taking extensive legal advice, the Board of PartyGaming Plc has concluded that the new legislation, if signed into law, will make it practically impossible to provide US residents with access to its real money poker and other real money gaming sites. As a result of this development, the Board of PartyGaming has determined that if the President signs the Act into law, the Company will suspend all real money gaming business with US residents, and such suspension will continue indefinitely, subject to clarification of the interpretation and enforcement of US law and the impact on financial institutions of this and other related legislation.”

888 Holdings has already suspended its US operations, commenting that, “the board will continue to seek clarification of the overall US legal position to determine whether and to what extent if any resumption of participation by US customers is feasible”.

“At present however no assurance can be given that this will be possible,” they added.

Bizarrely, the anti-gambling legislation has been bundled in with The Safe Port Act, which is all about raising $3.4bn to “make ports safe” from evil terrorists by adding security measures like increased goods containers inspections.

PartyGaming Stock Exchange statement

Pace Micro Shipping 1st Motorola-based PVR To Comcast

Pace Micro Shipping 1st Motorola-based PVR To ComcastGood news for UK Tech firm Pace Micro as it receives confirmation from number one US cable company, Comcast to ship combined Set Top Box (STB) and PVR.

The dual-tuner SD PVR, known as the Vegas TDC575 in the US market, has been through trials and is now being shipped out to regions (or system as Comcast call them) across the US.

This is the first time that a non-US company has shipped Motorola-based systems in to the US. Pace have been shipping Scientific-Atlanta-based boxes to the US for a while.

Pace Micro Shipping 1st Motorola-based PVR To ComcastComcast is mighty, being the largest provider of cable services in the US, with 23.3 million cable customers, 10 million high-speed Internet customers and 1.6 million voice customers. Their business extends beyond simple cable TV provision, in their own words, they’re “focused on broadband cable, commerce, and content.”

Pace Micro
Pace Vegas TDC575
Comcast

US Web Half-Yearly Advertising Revenue Hits $8bn

US Web Half-Yearly Advertising Revenue Hits $8bnU.S. Internet advertising revenue has hit a new record high of nearly $8 billion for first six months of the year, increasing by a money-spinning 37 per cent, according to a new study.

The figures from a report by the Interactive Advertising Bureau (IAB) and PricewaterhouseCoopers, suggest Internet advertising revenue has continued to surge, despite a recent warning by Yahoo that new media ad spending could be slowing.

Yahoo pointed to weaknesses in two key sectors in marketing – automobile and financial firms – although some analysts think that the claimed slowdown is more about Yahoo’s own business declining and is not symptomatic of an industry-wide trend.

“The latest results reaffirm the Internet’s growing importance for marketers to integrate online advertising into their overall media plans,” commented David Silverman, Partner, Entertainment & Media Practice, PricewaterhouseCoopers.

“While search advertising remains the largest format in terms of revenues, we expect to see new formats like video ads to continue to emerge as advertisers seek to leverage the branding opportunities afforded by the growing installed base of broadband users,” headded.

US Web Half-Yearly Advertising Revenue Hits $8bnThe IAB/ PricewaterhouseCoopers figures show that Internet advertising revenue totalled nearly $4.1 billion in the last quarter, representing a thumping a 36 percent increase over the same period last year, and up a healthy 5.5 percent over the first quarter of 2006.

The study also reports that search-related advertising rose 40 percent in the first half of 2006, with classified advertising rising 20 percent.

“With the seventh consecutive quarter of growth behind us we are confident that the Internet will continue to reconcile the imbalances between its share of media consumption versus its relative share of total advertising spend,” enthused Pete Petrusky, director, Entertainment & Media Practice at PricewaterhouseCoopers.

Elsewhere, the Online Publishers Association (which includes CNET, iVillage and Reuters), forecasted a rosy future for its members, saying that it expected online advertising grow about 28 percent for the third quarter, with most of its members “seeing strength in all advertising categories with no areas appearing to slow down.”

[Via Reuters]

Huawei: “Who are We?” If You’re In Comms, You’ll Be Finding Out

Huawei: In 2004 the networking giant Cisco sued a little-known Chinese company called Huawei for IP (Intellectual Property) theft. Some two months later the case was dropped and settled out of court. Huawei promised to modify their designs, change their software and manuals. Rumours circulating at the time alleged that the Chinese government got involved and told Cisco that if they wanted to operate in China, they should leave Huawei alone.

Huawei was started by People’s Liberation Army officer Ren Zhengfei in 1988, specialising in the research and development of communications systems.

In the west the initial push has been towards core networking equipment for carriers and ISPs (markets which have historically been dominated by Cisco). In this market, Cisco’s normal approach was to offer a base product, then charge extra for additional software feature sets. Huawei’s approach is …. more generous, they include the all of the ‘extras’, while pricing the system around 60% of what Cisco charges for the base platform alone.

Support – throwing people at it
Low, all-inclusive pricing isn’t Huawei’s only winning approach.

If a large customer of Cisco reports a problem, it goes into their tracking system and the customer might be lucky if it’s looked at in a few days. If it’s identified as a bug, it might take a few weeks to isolate and fix.

Huawei: In China engineering talent is relatively cheap and their universities produce very high class students (and lots of them). This brings Huawei another advantage – huge manpower. When bugs are passed to Huawei, they go to their pool of, something like, 20,000 engineers, leading to the faults being tracked and fixed extremely quickly.

The Big Boys are buying Huawei too
Slowly Huawei started to make big inroads into the high-end markets. BT has even selected them as part of their 21st Century Network, (21CN). It’s rumoured in the market, that this will lead to the demise of Marconi (who failed to be selected, even though they’d been a partner of BT for decades).

Cisco – that’s just the start
If you’re in any form of communication business, don’t kick back and think, “Well Cisco needs a competitor. We should be OK.” Huawei’s plans extend far beyond merely eating Cisco’s lunch.

If you get a chance to wander into Huawei’s showroom in China, you may be lucky enough to get taken into a hangar the size of a football field. In one small area there’s the ISP/Telcocore kit, we’ve mentioneed. The rest of the space is filled with other technologies such as IN (Intelligent Network – the brains behind telco voice networks), GSM, GPRS, Edge, 3G, NGN (Next Generation Networks i.e. IP-based voice and data networks like BT’s 21CN), xDSL (both end-user and network), optical (driving fibres), routers and LAN switches and of course consumer devices for it all.

Huawei are currently supplying all sorts of companies. Ever wondered who makes the new USB 3G datacard for Vodafone (the USB one that works on Windows, Mac and Linux)? Huawei.

Initially Huawei picked a ‘small’ market to concentrate on, but now they’re ready to attack the bigger ones. They have the equipment, and the resources to make a huge dent into the existing players markets of all sorts. It won’t just be Cisco suffering.

Huawei

$15 itunes Movie Price Judged Too High By Majority Polled

$15 itunes Movie Price Judged Too High By Majority PolledAccording to new research from The Diffusion Group, only 14% of broadband households would be interested in an iTunes online movie download service for use on PCs or portable devices if titles were priced at $15 each. This compares to total interest of 23% at $10 per download – a 64% decline in interest when increasing the cost per title by only $5.

On the Viability of an iTunes Movie Download Service, a two-part report series produced by TDG, states that movie studios originally demanded that Apple accept a pricing scheme of around $20 per download, similar to the prices charged by current online movie services such as CinemaNow and Movielink. But according to Michael Greeson, founder and principal analyst with TDG, Apple demanded download prices of around $10 for even new titles, half that of existing services. “It would seem, then, that the two parties simply split the difference. All things equal, this appears to make sense.”

However, TDG’s research found that the net loss of demand from increasing the price from $10 to $15 is almost four times the gain in demand from lowering the price from $20 to $15. In other words, at $10 per title, demand would have been optimized yet profits would have suffered, while at $20 per title both revenue and profits would have been optimized with little loss in demand.

Speculation regarding Apple’s entry into the online movie space heated up in advance of the early August Worldwide Developers Conference, but nothing materialized. As Apple’s September 12 public launch event nears, the rumor mill is again churning and has this time attracted pundits from the mainstream business press. Of course, Apple continues to decline comment.

$15 itunes Movie Price Judged Too High By Majority PolledRegardless of whether the iTunes movie download service is announced this month or later this year, Greeson believes that the time is right for Apple to enter this market space. “Although current services such as CinemaNow and Movielink continue to languish, Apple is aware that the conditions are now suitable for extending iTunes to include full-length movie downloads. Consumer awareness has improved; video-over-broadband is now viable; studios are now making movies available for online download to DVDs; portable video platforms are improving qualitatively with each new generation; and Apple’s brand awareness and credibility are at all time highs. As well, CinemaNow and Movielink’s experience, while insightful, is of limited value to Apple, who continues to enjoy the fruits of being a market-maker in portable digital electronics and online media services.”

One challenge faced by today’s online movie download services that will still haunt Apple is the fact that movie downloads are still being viewing on the PC or portable devices – scenarios that do not reflect the video consumption behavior of the majority of US consumers. Connecting these services to the living room TV (either directly via a broadband-enabled set-top box or indirectly via a digital media adapter) is imperative to expanding the online movie market beyond the earliest of early adopters and to helping move Apple into the living room (the primary battleground for future-thinking PC and CE vendors).

For these reasons, TDG commissioned a June 2006 consumer study to evaluate consumer interest in and price sensitivity toward two types of Apple iTunes-branded online movie services – the first involving movie downloads to the PC and portable devices and the second involving movie downloads to a iTunes-branded set-top box or digital media adapter connected to the primary home TV. Researchers examined consumer receptivity to both of these scenarios across a variety of prices points, identified the core group of consumers most likely to adopt these services, and profiled this segment across a number of characteristics.

Both of these reports are now available for purchase on TDG’s Website..