Tuesday, February 22, 2011

Amazon Streaming Video Service Has an Advantage

In business, it typically is advantageous when one competitor can afford to merchandise (give away) something of value that other competitors charge for.

Amazon, for example, now offers an instant video streaming service for its U.S. "Amazon Prime" customers. Amazon Prime is its $79 a year service which includes free two-day shipping for Amazon customers. The deal is that Amazon Prime members get access to Amazon's streaming service for no additional cost.

To be sure, Amazon's service currently offers unlimited, commercial-free and instant streaming of 5,000 movies and TV shows, where Netflix offers something on the order of 20,000 items. The Netflix streaming-only subscription costs $7.99 per month, which adds up to about $96 a year.

The point is that Amazon has another way to monetize its service, compared to Netflix.

VoIP Bandwidth Calculator

I recently ran into a cable TV executive who reported some issues with a recent business hosted IP telephony installation. The issue was the sizing of the upstream bandwidth. Apparently, the issue was that the hosted IP telephony system also was interacting with some premises gear that essentially required four call paths to set up a session.

Here's a table to estimate the bandwidth required to support a given number of lines (voice paths) across a broadband connection, using a variety of codecs, and assuming you do not have the aforementioned problem.

Will Apple’s Subscription Plan Drive Developers to Android?

Google and Apple are in a building race for the loyalties of content providers and developers using their respective application stores.

While the iPhone has the largest app store, Google recently overtook Nokia and other phone manufacturers with the largest mobile operating system market share.


Google's "One Pass" will allow publishers to sell subscriptions with better terms than they can get with Apple. Google is only taking a 10 pecent share of the revenues, will Apple takes 30 percent.

Why is NCR Renting DVDs?

You might have seen Blockbuster DVD rental kiosks in grocery stores. Those kiosks actually are owned by NCR. You might wonder why NCR is in that business. Basically, NCR is doing so as a way of increasing demand for its automated terminals, and to gain operating knowledge that could be helpful as NCR attempts to create new uses for automated terminals.

Today NCR makes most of its money from automated teller machines and retail checkout systems. Nobody knows yet how much more that might change in the future, but observers might point to substantial use of retail kiosks in Japan, for example, as pointing to the possibility that consumers might want to buy a broader array of products from kiosks in the future.

How Airlines Use Twitter

Social media is a two-edged sword, a tool brands can use, but also a tool consumers can use. Note that United Continental gets 57 percent negative tweets.

It's tough to control a brand message when that level of negative commentary is being posted.

France Could Outlaw Skype

Many executives in the telecommunications industry, a decade ago, thought it was unfair that VoIP services such as Skype did not have to abide by many of the rules that govern providers of public telecommunications service. Contributions to universal service funds and payment of taxes were sticking points.

Skype is not "registered" as a "telecommunications provider" in France. Skype also has been the subject of legal proceedings in France for that reason. So it appears the issues will be raised again.

Readability Tests Apple App Store In-App Fee Policy, Loses

Readability is a software development boutique whose reading functionality is part of the Apple Safari browser, but whose Apple App Store app (Readability iOS ) has been rejected, apparently because the app uses a non-Apple in-app purchase mechanism.

Readability says content providers get 70 percent of revenues when users buy content, but that Apple's 30-percent fee for app content sales then destroys the business model.

Which brings up an interesting question: as cloud-based software subscriptions start to proliferate, will Apple apply the same 30-percent fee? And, if so, will providers of all sorts of cloud-based apps avoid the App Store?

There are signs Apple already has thought about this, and does not plan to impose the same arrangements for cloud-based software apps. See http://www.macrumors.com/2011/02/21/steve-jobs-email-suggests-in-app-subscriptions-dont-apply-to-software-as-a-service/

Directv-Dish Merger Fails

Directv’’s termination of its deal to merge with EchoStar, apparently because EchoStar bondholders did not approve, means EchoStar continue...