Regulatory Strategy Now Becoming More Important for Apple, Google, Others

The Texas attorney general's office is conducting an antitrust review of Google Inc.'s core search-engine business, a sign of widening government scrutiny of the Web giant.

The move is one more sign of the growing importance all sorts of regulatory issues now pose for technology companies that historically have not paid much attention to regulators, though Microsoft and Intel long ago became aware of the importance of regulatory affairs.

Texas's top prosecutor has inquired about allegations by several small companies that Google unfairly demoted their rankings in search results or the placement of their advertisements on the search engine, Google said Friday.

But with the increased awareness of regulatory downside has come an awareness that regulatory action can help a company as well.

In April, the Federal Communications Commission invited comments on a proposal that cable and satellite operators let viewers use any "smart video devices" available in stores to connect to their TV service. It says it wants to "foster a competitive retail market" in the devices.

If implemented, it could have far-reaching implications. Among other things, the FCC hopes such a mandate would prompt electronics manufacturers to make devices offering both Internet video and traditional TV services.

That could create a much-bigger opportunity for Apple, Google and other firms as well.

To the extent that the set-top decoder is the physical embodiment of the ability to access applications and services, the new rule would open the door for third-party devices, or integration of new features directly into set-top decoders, in ways not possible up to this point. Where the decoder that now enables multichannel video services also effectively blocks access to Internet video, that could change if the new FCC rules are adopted.

Telcos, cable, mobile and satellite companies long have been acutely aware of the role regulations play in enabling or disabling business models. That is something technology firms only recently have learned.

The Case for Femtocells

Though in some cases a femtocell will only boost voice performance inside a building, that might be worth doing, in some cases. How many of you have neighbors talking on their porches on their mobiles?

Redbox Needs a Streaming Service

Redbox, the provider of DVD rentals from kiosk locations, needs a streaming service to complement what it already provides, much as Netflix has shifted much viewing to its online channel rather than its "DVD by mail" channel.

About the only questions are how Redbox will do that, when it will do so, and how much the additional online delivery will cost.

A BusinessWeek report hints that Apple could be that partner. The story notes that Redbox added 1.8 million Internet users in the second quarter, including an iPhone application that lets customers reserve DVDs at kiosks, Redbox, owned by Coinstar, also offers an iTunes coupon through its coin-counting machines.

The company says it needs a partner to deliver movies to homes and portable devices to compete with Netflix Inc.’s online service. Netflix streams more than 20,000 titles as part of its subscription service. So far, Redbox seems to be downplaying the likelihood Sonic Solutions Inc., supplier of online movies services to Sears Holdings Corp. and Best Buy Co. would be the Redbox partner.

“We are exploring multiple opportunities,” Paul Davis, Redbox CEO, said. But some details might not be far away. The firm probably will provide some details at its next quarterly earnings call.

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Apple TV, Google TV Take Different Approaches

Apple and Google are taking different approaches to their TV efforts. Apple TV essentially wants to be an add-on that delivers streaming Internet video to the TV display, in an "iTunes for TV" type approach. But consistent with the way Apple approaches its other businesses, the emphasis will be on streaming video available within the Apple ecosystem, in all likelihood.

Google TV really aims to be an active organizer of linear and Internet TV options, acting more like a traditional set-top decoder than a provider of online video that can be viewed on a TV. And, so far, Apple has gone with an "accessory" approach to the "iTunes for TV" business, while Google is working with partners to embed the functionality directly into the TV itself.

Apple's approach likely will work better in the near term, but Google's approach would be more powerful long term, if sufficient number of Google TV units can be shipped. Historically, one would side with Apple in terms of building the user base.

Cable, satellite and telco video providers have found they must provide their own decoding units, instead of relying on TV suppliers to build that functionality into the actual TVs.

Apple's approach makes it more of a distribution channel and partner to content companies. Google's approach, riskier in some ways, represents a potentially more significant change in video viewing habits. For one thing, it essentially makes linear video delivered by a service provider and Internet video gathered from across the web "equals" in terms of viewing choices.

Eric Ries on "Minimum Viable Product"

Eric Ries, author of the blog "Startups Lessons Learned," and a guiding light in what's become a popular movement in Silicon Valley - going lean.

  

Minimum Viable Product Webcast

Here's a webcast with Eric Ries, who teaches startups and product developers about the development process, especially the way to use the "minimum viable product" approach. It is worth a listen if you do product development. 

What is a "Minimum Viable Product," and Why Do You Care?

If you are not in the product development business, you probably don't care what a "minimum viable product" is, and how it relates to creation of new products. If you do have responsibilities for product development, minimum viable product is a method for creating products faster, and at lower cost, by prototyping and beta testing.