Consumers Pulling Back

The percentage of consumers who feel we are in tough times or a recession has increased since April, according to a monthly survey by The NPD Group, Inc.

In May, 58 percent of consumers said we are in a recession, compared to 55 percent in April.

What’s more, consumers are not only less optimistic about the economy, they are beginning to change their behavior in response.

How are consumers reacting? The survey respondents said they are planning to spend less on things like apparel and footwear. And with vacation season approaching, 49 percent of consumers said they plan to cut back on leisure travel.

“Consumers are finally starting to react to the price of gas and other rising costs and are shifting shopping intentions,” says NPD chief industry expert Marshal Cohen.

Channel Conflict Growing in Video Business

There's always some tension between the economic interests of content owners and distributors of that content. Cable operators make their money one way; programmers another. So when Time Warner Cable CEO fires off a warning, that's just part of growing tensions in the video entertainment ecosystem.

"There is a model today for financing TV programming where the cable networks rely on subscription revenue as well as advertising revenue," says Britt. "As cable companies, we are in effect retailers; we buy programming wholesale, we put it in a package, and we sell it to subscribers."

But programming moving direct to Internet distribution will upset the current arrangements, he warns.

"Programmers shouldn't think that if they put the same content on the Internet for free, at the same time we're showing it, that we're going to pay the same wholesale price as we were paying before," Britt tells the Wall Street Journal.

Global Software Piracy Scorecard

In 2007, for every two dollars spent on legitimate software purchases, one dollar’s worth of software was obtained illegally. In the highest piracy countries–those with 75 percent piracy or higher–for every one dollar spent on PC hardware, less than seven cents was spent on legitimate software, says the Business Software Alliance.

In developed markets, that ratio is eight times higher. By the end of 2007, there were more than one billion PCs installed around the world; nearly half have pirated software on them.

Best Buy Expands Recyling Programs

Best Buy Co. has launched a test of its newest electronics recycling program to in 117 U.S. stores, in addition to the existing programs offered by Best Buy stores, which have focused on mobile phones, ink cartridges, batteries and other smaller mobile devices.

Starting June 1, 117 stores in the Baltimore, San Francisco, and Minnesota markets are inviting customers to bring in no more than two units per day, per household, for recycling at no charge.

Customers can bring items such as televisions and monitors up to 32”, computers, phones, cameras, and other electronics devices and peripherals in for recycling.

The following items cannot be accepted through this program:

• Televisions or monitor screens greater than 32”
• Console televisions
• Air conditioners
• Microwaves
• Appliances (customers are invited instead to use Best Buy’s appliance haul-away and pick-up programs)

Meanwhile, Best Buy continues to offer these electronics and appliance recycling options, available in every U.S. store:

• Recycling kiosks: at the front of every store, ink cartridges, rechargeable batteries, cell phones, CDs, DVDs, and PDA/smart phones can be dropped off for free recycling
• Appliance and television haul-away: Best Buy will remove an old or obsolete appliance or television free of charge from a consumers' home when a new product is purchased and delivered by Best Buy Home Delivery or Geek Squad Home Theater Installation Service.
• Appliance and television pick-up: For $100, Best Buy will arrange a home visit to remove up to two (2) appliance units and/or televisions for recycling, with $20 for each additional unit.
• Tech Trade-In: Visit www.bestbuytradein.com to trade in select gently used electronics for a Best Buy gift card.

BT to Cut Carbon Footprint 80% by 2020

British Telecom plans to reduce its carbon emissions 80 percent by 2020. BT earlier had said it would invest close to half a billion dollars in wind farms that could supply close to 25 percent of the company’s power needs by 2016.

Wireline, Wireless, Broadand All Up in France

There's some interesting data emerging about wireless substitution. To wit, wireline subscriptions in some markets do not appear to be declining as wireless grows.

To be sure, share is shifting to new competitors. But that's a different question than abandonment of wireline accounts in favor of wireless-only service.

France added around 675,000 new broadband users in the first three months of this year to boost the country’s high speed internet user base from 15.551 million to 16.225 million, reports the country’s regulator Arcep.

On an annualised basis, the French residential and business broadband market climbed 18.6 percent from 13.676 million at the end of March 2007, the report said. ADSL continues to be the overwhelmingly popular access technology, accounting for 15.475 million access lines, with the remainder made up by cable, FTTx or satellite services.

Arcep also reported a strong rise in wholesale access lines in the period under review, up 338,000 lines to 7.825 million. France had also unbundled 5.521 million local loops by the start of April 2008, with some 4.012 million subscribers taking fully unbundled services.

In other findings, mobile subscriptions also continue to grow, while fixed lines also were up. So much for wireless substitution.

50% Home Network Penetration

More than half of broadband users in the United States today have some form of home network, according to ABI Research. In 2006 one third of broadband subscribers had such networks.

Fifteen percent of home network owners today are streaming music over the network and another one in ten is streaming video, ABI notes.