September 2010

Bar Codes Add Detail on Items in TV Ads

Bar codes, the tiny black and white boxes that have been popping up in magazines, on posters and on some billboards, are arriving on television, allowing viewers to instantly obtain additional information about a product and a discount to buy it.

Bar codes have been used more widely in Asia and Europe, including on television, but in the United States, the lack of one standard code — reminiscent of the quarrel over VHS and Beta formats — as well as the relatively small number of smartphone users equipped with appropriate software have slowed the technology's use, said Michael Becker, managing director for North America of the Mobile Marketing Association, the industry's group. "Using bar codes is starting to spread," he said, "because more people are using smartphones, and many of those phones have the scanning application to read the codes." Cellphone fees — whether the user has an Internet access plan or pays for each data download — have also hampered such mobile technologies. Even so, a report last month from Nielsen predicted that smartphones, which now account for 25 percent of the domestic mobile market, would overtake standard mobile phones by the end of 2011.

A Move to Unify Europe's Media Market

Serving as a member of the European Parliament can be a thankless task. Lobbyists accost you from all corners. Tabloid newspapers complain about your expenses. And after a day of plenary sessions in Strasbourg, you might not be able to watch television shows from your home country without breaking the law. On that last issue, at least, there may be hope for change — thanks in part to action by the Parliament.

Last week it called for a long-overdue overhaul of European copyright laws, aimed at fostering the development of a single European media market. For now, there is no such thing; even on the supposedly borderless Internet, most music and video services are fragmented according to European national boundaries. Licensing restrictions are often to blame. Just to show a television program in one country, broadcasters need to clear a range of copyrights covering writers, musicians, actors and others. Trying to do this across all 27 E.U. countries is incredibly cumbersome and hardly cost-effective. Parliament members and other E.U. officials in Brussels want to introduce one-size-fits-all licenses for the entire Union.

Supreme Court Will Consider First Amendment Rights as They Apply to Two Cases Involving the Internet and Videogames

Free speech stands front and center in the Supreme Court term beginning next week, in a pair of cases testing the First Amendment's reach in the digital age.

On Oct. 6, the justices will weigh whether the First Amendment protects a Kansas church's campaign to publicize its beliefs by picketing military funerals with vulgar placards and insulting fallen soldiers' survivors in online screeds. A month later , the court is to consider whether states can bar minors from buying violent videogames, on the theory that these games cause damage to developing minds and this outweighs young people's constitutional rights.

Both cases add digital twists to constitutional doctrine. The church's Internet posting potentially exposes the entire world to its hurtful attack, while the videogame laws single out computer role-playing as uniquely dangerous to children while leaving violent music, films, comic books and other media unrestricted.

The Roberts Court's record on free-speech cases makes it hard to predict the outcome. It voted 8-1 earlier this year to strike down a federal law that banned depictions of animal cruelty, finding the ban too broad. At the same time, it curtailed First Amendment rights for minors in 2007, ruling that school officials could suppress a student placard that referred to marijuana.

TV Makeover Starts With Corner Office

Television networks, struggling with big shifts in audience viewing habits, are plotting new ideas to remake their businesses, starting with who's in the corner offices.

Comcast Corp. and General Electric Co. on Sunday said Steve Burke, Comcast's chief operating officer, will replace Jeff Zucker as chief executive of NBC Universal. Mr. Burke, 52 years old, will assume the role when Comcast takes control of the TV and movie giant from General Electric. Time Warner Inc.'s CNN on Friday replaced Jon Klein as president of its main U.S. network. And three weeks ago, Walt Disney Co. said ABC News chief David Westin would depart at the end of the year. Each of the three big shifts presages more than a new nameplate. TV viewers are spending more time online, and the changes reflect a deep uncertainty about how TV companies will make money as their audience moves increasingly into the broader Internet. The management shifts come at the beginning of a rough-and-tumble TV season, with a bumper crop of new TV series desperately seeking an ever-fragmenting audience. The overall broadcast audience declined in the first week of the new season compared to last year, with existing hits such as "Dancing with the Stars" generally drawing the most viewers.

I'm OK, You're Not OK, Say Television Executives

When it comes to video cord-cutting, TV executives are moving out of the denial stage. They are now claiming it is someone else's problem.

Consider comments at last week's Goldman Sachs media conference on the issue, which involves consumers ditching cable-TV subscriptions in favor of cheaper Web TV options. Verizon Communications Chief Executive Ivan Seidenberg candidly warned that just as cord-cutting devastated the traditional landline phone business, as customers went mobile, it would hit video. Verizon is in the video business through its FiOS network. But Mr. Seidenberg said that given FiOS's high capacity and ability to offer extras like 3-D, "we will be OK," whereas it "is going to be a pretty big issue for cable." Meanwhile, Time Warner Cable CEO Glenn Britt, insisted, "I feel pretty good about us," given that cable operators' broadband infrastructure is needed for Web access. "This is more focused on the entertainment business than on us," he added. But John Martin, finance chief of entertainment company Time Warner, insisted that "our type of company should benefit" if viewers cut the cord en masse. The reality is all companies are threatened to some degree. After all, right now, nearly 97% of households with TVs subscribe either to cable, satellite or phone company-delivered video service, Nielsen estimates, with subscription proceeds effectively being split between providers and entertainment companies.

State officials put aside total ban on drivers' use of cellphones

Doubting that a proposed total ban on cellphone use behind the wheel could be enforced, the nation's highway safety officials Sept 26 declined to endorse a prohibition.

The Governors Highway Safety Association set aside a California proposal that the group press for state legislatures to consider a complete ban. "We don't want this to become like the speeding issue, which we've already lost. Everybody speeds," Jonathan Adkins, a spokesman for the GHSA, said from the group's annual meeting in Kansas City (MO). "They haven't shown that the laws we already have," such as requiring the use of hands-free devices or banning texting while driving, "are very effective." The vote is a telling moment in the debate over use of distracting electronic devices while driving. Alhough safety advocates, including the National Safety Council, have called for a total ban on drivers using cellphones, the GHSA is a better bellwether of the political and public will to embrace stiffer restrictions.

Google, Microsoft push to extend privacy protections to cloud-based e-mail

Technology executives and law enforcement officials are clashing over a nearly 25-year-old law that protects Internet users' private information. Some of the world's largest technology companies, including Google Inc. and Microsoft Corp., are pushing for changes to the law — written before the World Wide Web existed — saying it makes it too easy for government investigators to gain access to their customers' Web-based e-mail and documents.

That, the companies say, is bad for the bottom line. Many consumers and businesses are finding it easier and cheaper to entrust the storage of their e-mail and documents to Web companies such as Google that can store vast amounts of data in the so-called cloud — networks of remote computer centers filled with thousands of high-speed servers. But the cloud's wealth of personal data has also attracted law enforcement officials eager to tap into the information to catch and prosecute criminals. They say Congress should be wary about diminishing their powers to investigate crimes in a fast-changing digital landscape where evidence can disappear overseas — or into oblivion — in an instant. The debate over the 1986 Electronic Communications Privacy Act escalated Sept 23 in a hearing before a House Judiciary subcommittee — the latest in a series of hearings aimed at updating the law to encourage the growth of online business while striking a balance between effective law enforcement and users' right to digital privacy.

Party is over for US music downloads

Rapid growth in digital music downloads has ground to a halt in the US, suggesting the MP3 market is reaching saturation point. According to figures from Nielsen, the research group, 630 million tracks were downloaded in the first half of 2010 in the US, flat on the same period last year. Downloads were increasing at 13 per cent a year in 2009 and 28 per cent in 2008. Record labels had been banking on revenue growth from digital platforms to counterbalance falling CD sales. But even as downloads plateau, other forms of digital distribution, such as streaming, are failing to gain mass appeal while unlawful filesharing is largely undiminished. Jean Littolff, managing director of Nielsen Music, said many consumers had restocked their music collection after moving from CDs to MP3 players, leaving little extra impetus to music sales other than the latest releases.

Google at 12: A company navigating the conflicts that come with age

When Google filed its incorporation papers 12 years ago, the company that would grow to a $24 billion-a-year business consisted of three Stanford computer science graduate students, all in their mid-20s. But even back in September 1998, Larry Page and Sergey Brin, Google's co-founders, and Craig Silverstein, Google's first employee, had a clear idea how they would carefully pick their hires, choosing people compatible with the culture they planned to create. As Google marks its 12th birthday this month, the tightknit, idealistic culture forged by its founders remains one of the company's foundational strengths. Many key players in its top management date to its earliest days, veterans of 100-hour work weeks and parking-lot roller-hockey games, who shared a vision of a company that could change the world. But just as those former 20-somethings are now looking at 40, with spouses, kids and other middle-age responsibilities, so too have their views of business matured. With the growth in Google's reach and power, their idealism is now forced to vie with coldblooded calculation, observers say. The result is a company navigating the conflicts that come with age, balancing commitment with pragmatism as it evaluates what success really means.

The Media's Double Vision about the Digital Age

The mainstream news media have offered the American public a divided view of how information technology influences society, according to a new study by the Pew Research Center's Project for Excellence in Journalism.

Over the past year, messages about the promise of technology making life easier and awe about new gadgets have vied in the news with worries about privacy, child predators, shrinking attention spans and danger behind the wheel. The most prevalent underlying message about technology's influence has been upbeat -- the notion that technology is making life easier and more productive. Nearly a quarter of all technology stories studied from June 1, 2009, to June 30, 2010, conveyed this idea. But that was closely followed by the sense that with that convenience comes risk -- to our privacy and particularly to our children -- which made up nearly two-in-ten stories, according to the study These are some of the findings of the PEJ study of 437 technology-related stories appearing in the lead sections of 52 different news outlets: front pages of 11 newspapers, three cable and three network news channels, 12 websites and 10 radio programs. The study was designed to examine the media coverage that occurs when technology news crosses beyond technology-oriented outlets or news sections to the top of the American news agenda -- to front-pages, the national nightly news, cable prime-time and other general interest news outlets. It did not delve into specialty publications or sections. The biggest single event or storyline during the year involved the perils of technology: the hazardous yet compulsive practice of texting while driving. Nearly one-in-ten technology stories were about this subject, more than five times the coverage of either the U.S. plan for broadband access and six times the coverage devoted to the debate over network neutrality