Apple wants more money for iPad newspapers

Apple reportedly has told European publishers that print subscribers will not be able to offer those customers "no incremental cost" access to the same content on Apple iPads.

Apple apparently wants to encourage print publishers to create separate digital editions, including either single-issue access or subscriptions, that allow Apple to capture 30 percent of the gross revenue, rather than allowing iPad access for no additional cost.

Apple wants more money for iPad newspapers

Groupon Turned Down $6 Billion, Thinks it is Worth t $15 Billion

Groupon, the social buying site that rejected a $6 billion offer from Google, is pushing ahead with plans for its initial public offering, a debut that could value the company at $15 billion or more. That would be a high multiple for a company with perhaps $1 billion of revenue.

Many have speculated that a new Internet bubble is forming. Of course, bubbles build and then burst with no warning, sometimes leading to a loss of 99 percent of equity value. That is not likely "this time around," as firms generally have some basis in revenue reality.

But whether you think a new Internet bubble is forming, or not, valuations and interest are much higher than at any point in the last five to 10 years. So we are likely to see a rush to go public. Inevitably, insiders will do well. It isn't so clear how well the public investors will do, given the passage of some time.

With I.P.O., Groupon Is Said to Value Itself at $15 Billion - NYTimes.com

63% of Millennials Use Social Media to Engage with Brands

About 63 percent of Millennials use social media to engage with brands, a new study by McKinsey & Company has found.

A Majority of the the Emerging Affluent Uses Social Media to Engage with Brands

Twitter is full of regional 'accents'

Researchers at Carnegie Mellon University examined 380,000 messages from Twitter during one week in March 2010 and found that the social networking site is full of its own kinds of geographical dialects.

Take the word cool. Southern Californians tend to write the shorthand 'coo,' while their neighbors up north use the phonetic shorthand 'koo.'

The 4.5 million words the researchers examined were full of similar examples. Some were obvious — like 'y'all' in the South or 'yinz' in Pittsburgh.

Twitter is full of regional 'accents,' study finds - Yahoo! News

Projecting iPhone's Effect on Verizon's 2011 Wireless Revenues - Seeking Alpha

By one survey conducted by Compete, about 8.7 percent of Verizon Wireless customers are waiting for a specific phone model before upgrading to a smartphone, and most assume that means the Apple iPhone.

According to Verizon’s third-quarter 2010 financial statement, only 23 percent of Verizon’s 82 million post-paid subscribers currently had a smartphone. This means that there is a potential pool of some 63 million post-paid cellphone owners that Verizon can convert to the iPhone, without stealing away a single new net add.

If the 8.7 percent of existing Verizon's customers who are waiting for a specific phone choose to upgrade to an iPhone, Verizon could enjoy a spike of more than 5.4 million new iPhone customers in 2011.

Even if just three million existing non-smartphone Verizon Wireless subscribers upgrade to the iPhone, Verizon Wireless could earn more than a billion dollars in additional data revenue over a two-year period, assuming new monthly data plan revenues of $15 a month and two-year contract lengths.

That does not even account for net customer gains Verizon might pick up as customers from AT&T and other service providers move over to Verizon Wireless to use the iPhone on the Verizon network.

Projecting iPhone's Effect on Verizon's 2011 Wireless Revenues - Seeking Alpha

U.S. Game Revenue Flat in 2010

Total U.S. consumer spend on gaming content in all forms, including new physical video and PC games, used games, game rentals, subscriptions, digital full-game downloads, social network games, downloadable content, and mobile game apps, is between $15.4 to $15.6 billion. That's a range that would make 2010 activity about the same as 2009, or just slightly less, according to NPD Group.

Spending on new physical content at retail continues to account for the majority of the total consumer spend on games content. U.S. retail sales of new physical video game content, which includes portable, console and PC game software, generated revenues of $10.1 billion, a 5 percent decline over the $10.6 billion generated in 2009.

2010 TOTAL CONSUMER SPEND ON ALL GAMES CONTENT IN THE U.S. ESTIMATED BETWEEN $15.4 TO $15.6 BILLION

Shoppers Have More Information Than Store Associates, Motorola Says

The majority of surveyed retail associates surveyed by Motorola (55 percent) believe that 2010 holiday season’s shoppers were better connected to consumer information than in-store associates, particularly because consumers have online shopping tools and mobile phone applications that allow price comparisons, access to coupons and social-networking.

Motorola says that retailers that aren't investing in technology to stay ahead of increasingly tech-savvy shoppers are hurting their own bottom line. Nearly three in 10 (28 percent) store visits ended with an average of $132 unspent due to abandoned purchases driven by deal-habituated behavior, out-of-stocks, limited store associate assistance and long check-out processes, Motorola estimates.

On a positive note, the survey indicates that when surveyed shoppers received guidance from a retail associate armed with a handheld mobile computer, over four in ten (43 percent) reported the device improved their shopping experience. The survey also notes that an overwhelming majority of retailers - 87 percent - believe that shoppers can easily find a better deal so customer service - aided by access to real-time information -- is 'more important than ever.

Motorola Solutions Media Center - Press Releases - 55 Percent of Retailers Cite Shoppers as Better Connected To Information than Store Associates, According To Motorola Solutions Survey

Google Kills H.264 Video Codec Support: Why?

Google says it is removing Chrome support for the H.264 codec. It is the sort of decision that will not have totally-obvious implications for most relatively non-technical people. Google says it is supporting the WebM (VP8) and Theora video codecs, and will consider adding support for other high-quality open codecs in the future, rather than H.264.

'Though H.264 plays an important role in video, as our goal is to enable open innovation, support for the codec will be removed and our resources directed towards completely open codec technologies. A relatively straight discussion of the technology issues is here: http://news.cnet.com/8301-30685_3-20028196-264.html?tag=mncol;txt.

But there's also thinking that the codec decisions are part of developing conflict between Google and Apple. See http://www.digitalsociety.org/2011/01/google-is-killing-html5-to-harm-apple-ios/?utm_source=rss&utm_medium=rss&utm_campaign=google-is-killing-html5-to-harm-apple-ios

Apple made the decision to not allow Adobe Flash on iOS devices because they want to retain sole control over application distribution and design with their App Store, a technology decision with business implications.

The current near-universal delivery platform was Adobe Flash but that was losing steam because of its inability to reach Apple iOS.

By crippling HTML5 H.264 under the guise of supporting Google’s VP8 codec (which is a nonstarter because VP8 is inferior to H.264, carries potential patent infringement liabilities, and H.264 is entrenched in billions of hardware devices while VP8 has no current support), the only remaining viable option for most content producers is to continue delivering H.264 via the Adobe Flash platform or via Microsoft Silverlight like Netflix, says George Ou.

Larger content providers will be able to deliver H.264 compressed video on both Flash or Silverlight for most of the world and HTML5 just for Apple iOS devices, but it will remain difficult to reach Apple iOS devices. Google Android devices will be able to reach Flash websites like Windows or Mac Personal Computers which gives them a leg up on Apple, Ou argues.

Chromium Blog: HTML Video Codec Support in Chrome

LightSquared in Trouble?

Prominent hedge fund manager Phil Falcone's $7 billion Harbinger Capital Management has been hit by a series of high profile departures in the past few weeks, according to people familiar with the fund.

While some departures were voluntary, others were part of an effort to cut the fund's staff, as the firm's assets have shrunk from a peak of $26.5 billion in 2008, the sources said.

Those moves could have an impact on Harbinger's ability to secure additional funding for its satellite-plus-terrestrial Long Term Evolution wholesale network. About 40 percent of Harbinger's total capital is tied to LightSquared.

Whether the departures are related to perceptions about the chances of success, or not, LightSquared faced big challenges from the start. Mobile satellite networks have lost investors lots of money in the past.

Shrinking hedge fund Harbinger faces staff exits | Reuters

T-Mobile USA Mocks At&T, Verizon

There's "no competition" in the mobile business, some say. Sure, it's anecdotal, but advertising like this suggests there is quite a lot of competition.

Will Verizon iPhone Sales Change iPhone Demographics?

Irrespective of the ultimate changes in the smartphone and broader U.S. mobile business that might ultimately result from the new Verizon Wireless deal with Apple giving it the right to sell the iPhone, the iPhone user base looks like it will continue to be a choice target for brands looking to advertise.

Though change is likely as the iPhone user base moves from early adopter to mainstream users, the early demographics have been attractive for brands. Up to this point. iPhone users heavily over-index in some of the most attractive advertising segments, including 25 to 34 year olds (index of 175), 18 to 24 year olds (index of 141) and 35 to 44 year olds (index of 129) and are 22 percent more likely than an average mobile subscriber to be male.

Up to this point, iPhone users often also have represented higher income brackets, with 81 percent of users having a household income of at least $50,000 and 47 percent of users reporting a household income of at least $100,000. That demographic pattern, of course, will become less prominent as the iPhone continues to diffuse throughout the general population.

How the Verizon iPhone Announcement Could Influence the Mobile Market (comScore Voices)

The Next Big Media Battle: Publishers Against Ad Agencies

The media business has been in chaos for a decade, and there's more coming. The next big media revolution will be an escalating and increasingly bitter competition between the content creators -- especially newspaper and magazine publishers -- and their former friends, the traditional ad agencies, which still create and buy most print ads for their clients.

The traditional ad agencies are going to lose because creating great, engaging content is emerging as the key skill in marketing. And they don't have it, some would argue.

The Next Big Media Battle: Publishers vs. Ad Agencies:

Mobile venture capital investments grow to reach pre-crisis levels

Mobile venture capital investment took a sharp turn upwards last year reaching $6.1 billion, almost as much as the 2006 high of $6.4 billion. The mobile industry now accounts for 34 per cent of all the venture capital in tech as CapitalIQ research showed.

The growth is mostly due to a growing average value of deals. It was estimated that there were 416 deals made last year, while in 2009 and 2008 the number of deals stood at 269 and 284, respectively. The biggest deals – of course – came from the carriers and last year they made for a third of all the financings with a total value of $2.3 billion.

Mobile venture capital investments grow to reach pre-crisis levels

Do Tablets Affect When We Read?

Tablets might change how some people read, what they read, how much they read or what else they give up to read. Tablets might also change when people read. After analyzing about one million articles saved for later reading by Read It Later, the company suggests that tablets already are shifting the consumption of content, at least on the part of tablet owners.

The data suggests that iPad owners, for example, shift much of their reading away from PCs during work hours and towards "personal prime time" in the evenings.

Looking at the number of articles read each hour by Read It Later users on their computers, a significant amount of content was shifted towards the end of a user’s day (6PM – 9PM).

When a reader is given a choice about how to consume their content, a major shift in behavior occurs. They no longer consume the majority of their content during the day, on their computer. Instead they shift that content to prime time and onto a device better suited for consumption.

That reinforces the notion that iPads and tablets might wind up being used extensively "on the couch" and in the home, rather than as a replacement for a PC on business trips. One also wonders what happens to TV viewing, as reading is relatively more-immersive activity than much music listening, which happens when users are doing something else.

Is Mobile Affecting When We Read?