May 2012

In US, Slightly More Women Than Men Are Using Smartphones

By now, we all know that about half of US phone owners have smartphones, but what’s interesting is some new data on just who is more likely to be in the smartphone camp.

According to Nielsen, ethnic minorities were highly likely to have a smartphone, with Asian Americans leading the way at 67.3 percent opting for smartphones. Nearly three in five Hispanic mobile subscribers use a smartphone as do a majority of African-American phone users. By contrast, only 44.7 percent of white mobile phone subscribers have a smartphone. Women were slightly more likely than men to have a smartphone, with 50.9 percent of women having a smartphone compared to 50.1 percent of men.

Google Gets Deeper Into the Content Business, by Putting Money Into Machinima

Google has been handing out money to video makers so they’ll make more stuff for YouTube. Now it’s putting money into a video maker itself. The search giant is set to invest in Machinima, one of the most popular networks on YouTube, via a funding round that should close within a month. Machinima focuses almost exclusively on YouTube videos for and about videogame players, and generates more than a billion views a month. People familiar with the round tell me it should end up raising more than $30 million, and will value the company at around $190 million, post-funding. No comment from Google or Machinima.

A Pivotal Fight Over 'Essential Patents'

Microsoft and Motorola Mobility Holdings will get their day in a Seattle court, as a federal judge considers whether they are unfairly wielding patents involving standard technologies.

At issue is whether Motorola has violated its contract for licensing technology considered part of an industry standard. Patent owners are expected to license their technology on reasonable terms once it becomes part of a standard. Motorola's patents for video streaming and Wi-Fi are essential for mobile and entertainment devices and Microsoft adopted them for use in products including its core Windows operating system. Microsoft says Motorola's terms -- royalties of 2.25% on net sales of devices using its technology -- discriminate against major competitors when the patent is a small part of a large device. Microsoft argues that Motorola is breaking its promise to make standard patents available on reasonable terms. "We hope this hearing is a step toward holding Motorola to its commitments," Microsoft deputy general counsel David Howard said in a statement. Motorola says Microsoft rejected its license terms by filing the 2010 lawsuit, relieving it of the obligation to extend a license at all.

ICANN suggests nixing applicants who gained unfair edge

Rod Beckstrom, president of the Internet Corporation for Assigned Names and Numbers (ICANN), suggested that his group could deny applications for new domain endings if the applicants used a glitch to gain an unfair edge over their competitors.

He noted that ICANN has "ultimate authority" over approving all applications, and said the organization will examine whether any groups used a recent system glitch to look at the applications of their rivals. "If we were concerned with any parties' actions, one could hypothetically imagine that well could be taken into consideration [of whether to approve their applications]," Beckstrom said. He said ICANN officials will be able to tell whether any groups changed their applications after using the glitch to snoop on their competitors.

President Obama launches new $25M ad campaign in nine swing states

The Obama campaign is spending $25 million on an ad buy this month that will target nine swing states, including Ohio and Florida. The announcement by the campaign comes two days after President Barack Obama held his first official campaign rallies and as it released a 60-second spot titled “Go,” touting Obama’s accomplishments and continuing the campaign’s “forward-looking” theme. Obama campaign strategist David Axelrod said their likely opponent Mitt Romney has spent $55 million on ads already in the 2012 campaign and that 90 percent of them have been aimed at his opponents. Axelrod called the Republican super-PACs “Koch brothers contract killers,” and said the campaign will “respond vigorously” to each ad put out by the outside groups.

LIN Buying New Vision Stations for $342 Million

LIN TV announced it is purchasing eight full-power and two low-power network affiliates in eight markets from New Vision for $330.4 million and the assumption of $12 million of debt. LIN also said that it will be assuming agreements under which it will operate three other network-affiliated stations owned by third parties in three markets.

Here’s the stations:
KOIN (CBS) Portland, Ore. (DMA 22)
KSNW (NBC) Wichita-Hutchinson, Kan. (DMA 67)
KHON (Fox) Honolulu (DMA 71)
KSNT (NBC)/KTMJ-CA (Fox)/KTKA (ABC) Topeka, Kan. (DMA 136)
WIAT (CBS) Birmingham, Ala. (DMA 39)
WJCL (ABC)/WTGS (Fox) Savannah, Ga. (DMA 92)
KIMT (CBS) Mason City, Iowa (DMA 153)
WKBN (CBS)/WYFX-LP (Fox)/WYTV (ABC) Youngstown, Ohio (DMA 110)

ABC, Univision in Multiplatform New Venture

ABC News and Univision News announced they have agreed in principle to form a multiplatform joint venture targeted to Hispanic Americans in English while providing all audiences with “coverage of current events with a unique perspective.”

The agreement would capitalize on Univision’s news leadership and expertise in reaching U.S. Hispanics and ABC’s global news leadership to serve over 50 million Hispanics, the youngest and fastest-growing demographic in the US, according to ABC. The new 24/7 network will include America’s first English-language channel for English-dominant and bilingual Hispanics, as well as integrated digital and social platforms. It will deliver news content focused on issues, lifestyle interests and culture of importance to Hispanics, and will feature the journalists of ABC News and Univision News. The transaction is subject to the completion of definitive agreements. The two companies said Hispanics represent 16% of the total population in the United States, a number that is projected to double to 30% by 2050. Hispanics are the fastest growing segment of the population, wield considerable spending power of over $1 trillion, and have an increasing impact on social, economic and political trends.

Proview Sees ‘Big Gap’ After Apple Offers IPad Settlement

Proview Technology said a “big gap” remains with Apple after the U.S. company offered compensation to settle their dispute over ownership of the iPad trademark in China. Apple proposed an amount of money to resolve the legal case as part of the mediation process being directed by the Higher People’s Court of Guangdong, Roger Xie, a lawyer for Proview, said. He declined to disclose the amount or when Apple made the offer. “The Guangdong Higher People’s court is trying to mediate this, and both parties are trying to negotiate and come to a settlement,” Xie said. “Right now, there is still a big gap between the two sides on the settlement amount.”

Obama, Romney Craft Stories as General Election Gets Under Way

As the general-election season kicks off, President Barack Obama and former Gov. Mitt Romney (R-MA) will be looking to weave competing narratives out of the same set of numbers, analysts say.

While crucial undecided voters most likely aren't paying attention yet, the campaigns and their affiliated Super PACS are testing out approaches in key swing states. Romney, the presumptive Republican nominee, should focus on the economy, said Larry Sabato, director of the University of Virginia Center for Politics. Sabato said the president has a tougher task. "He has to use his ads to convince voters that they are better off, even when they may not feel they are. Selective use of economic data is key," he said. "Obama must stress the positive -- remind viewers of his domestic and foreign-policy accomplishments in his first term." President Obama should also go negative, Sabato said, defining Romney as a change for the worse.

Exercises in democracy: building a digital public library

Most neighborhoods in America have a public library. Now the biggest neighborhood in America, the Internet, wants a library of its own. Last week, Ars attended a conference held by the Digital Public Library of America, a nascent group of intellectuals hoping to put all of America's library holdings online. The DPLA is still in its infancy—there's no official staff, nor is there a finished website where you can access all the books they imagine will be accessible. But if the small handful of volunteers and directors have their way, you'll see all that by April 2013 at the latest.