July 2012

Analyst: Parents use Netflix to avoid commercials

Here's an aspect of the commercial-skipping phenomenon that might often go overlooked: parents who rely on streaming services like Netflix, as well as video on demand and DVRs, to keep their little ones' minds from being polluted by ads.

Sanford C. Bernstein analyst Todd Juenger's theory is that programmers of children's television -- specifically Viacom and Disney -- should limit the amount of programming they make available to Netflix and charge more for it. The commercial-avoidance afforded by the video streamer further supports that theory, he noted in a report to investors. The programmers should also be more picky about when they make the content available, he said. He recently conducted focus groups consisting of a total of 16 "moms" in which he found that "content control, commercial avoidance and time management" were their top considerations when choosing programming for their kids. The moms also told him that they had originally subscribed to Netflix for themselves, but because of a "dwindling supply" of offerings for adults, they now use the service mostly for their children -- who, he adds, don't seem to much care which device they use for viewing. TV sets, computers, tablets and phones are all fine with them. And the more they watch Disney and Viacom (which owns Nickelodeon) programming that way, the less valuable it is to those companies, he says. "Viacom and Disney should do everything in their power to steer viewership toward modes with the best long-term economics, namely traditional TV and emerging forms of TV Everywhere VOD," he wrote. There has been a "negative impact of Netflix on Disney's and Viacom's kids' TV ratings."

The Murrow Rural Information Initiative

The state of Washington is an information enigma.

Some of the nation’s leading digital technology companies are headquartered in and around Seattle, yet vast areas of the state are starved of locally relevant public affairs news. Google and Yahoo are just two of the global Internet companies that have opened offices in the state, joining content giants like Amazon and MSNBC, yet only 20 towns have a daily newspaper, just 23 have radio stations with some form of local news, and TV is clustered in four cities with tightly defined coverage areas. T-Mobile is headquartered in the state, yet mobile dead zones are common outside the major towns. Facebook recently opened a major office in Seattle, yet Washington’s use of social networking platforms like Facebook, LinkedIn and Twitter is lower than many other states. In huge sections of Washington, citizens have little or no access to news about what is taking place in their own communities. The situation is particularly grim in areas populated by minorities and on some of the vast Native American reservations.

In short, Washington is a digital state with a rural information ghetto.

May 2012 U.S. Mobile Subscriber Market Share

For the three-month average period ending in May 2012, 234 million Americans age 13 and older used mobile devices. Device manufacturer Samsung ranked as the top OEM with 25.7 percent of U.S. mobile subscribers (up 0.1 percentage points), followed by LG with 19.1 percent share. Apple continued to grow its share in the OEM market, ranking third with 15.0 percent (up 1.5 percentage points), followed by Motorola with 12.0 percent and HTC with 6.1 percent.

Nearly 110 million people in the U.S. owned smartphones during the three months ending in May, up 5 percent versus February. Google Android ranked as the top smartphone platform with 50.9 percent market share (up 0.8 percentage points). Five years after the release of the first iPhone, Apple’s share of the smartphone market reached 31.9 percent in May (up 1.7 percentage points). RIM ranked third with 11.4 percent share, followed by Microsoft (4.0 percent) and Symbian (1.1 percent).

New European Guidelines to Address Cloud Computing

The European Commission’s panel on privacy is expected to endorse the concept of cloud computing as legal under the Continent’s privacy law and to recommend for the first time that large companies and organizations police themselves to assure that personal information kept in remote locations is protected.

The panel, known as the Article 29 Working Party, is expected to make the recommendation as part of its long-awaited guidelines on cloud computing, which have the potential, some industry experts say, to allay concerns over data privacy and pave the way for wider adoption of the remote-computing services that are more common in the United States. The report will highlight the advantages of using cloud computing to encourage innovation and economic efficiency, said a person with knowledge of the recommendations, who spoke anonymously because he was not authorized to speak for the group. This would reflect a new, more practical approach by European officials to remote computing’s role in the broader economy.

Italy not letting Apple off the hook for illegal warranty policy

The Italian government isn’t messing around when it comes to product warranties. After extracting a hefty fine from Apple late last year for honoring only one year of free product warranty coverage, the state is moving to add additional fines and even force the company to temporarily shut down its operations in the country until it complies, Reuters reports. Italy’s Competition and Market Guarantor Authority (AGCM) is threatening to fine Apple 300,000 euros (about $377,500) for giving one year of warranty service to customers for free, but charging for additional coverage through its AppleCare product. Italy requires all companies offer two years of product coverage for free.

Chinese hackers steal Indian Navy secrets with thumbdrive virus

According to a report from The Indian Express, China-based hackers broke into the computer systems of India's Eastern Naval Command, where India's first nuclear submarine is undergoing trials.

Using a virus transmitted by USB thumb drives (which are banned from Indian Navy offices), the hackers were able to cache information that matched keywords and transfer it to another thumb drive when one became available. That allowed the data to be moved to Internet-connected PCs, where the virus then dumped the data and transmitted it across the Internet to servers in China. The virus is similar to one that attacked the US military's classified networks in 2008. Those led to a Department of Defense ban on the use of USB drives and any other writable removable media. The DOD partially lifted the ban in 2009, restricting the use of USB drives to "carefully controlled circumstances."

Fujitsu Adapts Android Smartphones As Location Guides for the Blind

Japan's National Institute of Information and Communications Technology (NICT) and Fujitsu announced their joint development of an indoor support system for the blind that uses ultra wide band (UWB) technology and a smartphone.

The system is able to provide real-time positioning data, even indoors where GPS cannot be used, and provide audio instructions on the distance and direction to a destination to help guide the blind. Currently there are systems under development that use GPS with mobile terminals to provide audio instructions to an outdoor destination. GPS, however, cannot be reliably used indoors. Accordingly, NICT and Fujitsu decided to use a UWB positioning system, which can provide highly precise positioning indoors, in real time with a granularity of less than several tens of centimeters.

Apple's Chinese suppliers violate worker rights, says labor group

There are serious violations of worker rights at Apple's other suppliers in China, even as Foxconn tries to improve working conditions, according to a labor rights group in New York.

Conditions at Foxconn remain far from satisfactory, wrote Li Qiang, executive director of China Labor Watch, in a letter to Apple CEO Tim Cook that is appended to a 132-page report on an investigation by the group. But Foxconn is better in treatment of workers than some of Apple's other suppliers in China, he added. Apple's suppliers in China mistreat workers, making them work overtime beyond legal limits, paying them low wages, and exposing them to dangerous working conditions, according to the report.

Google Outlines Proposals To EU To End Antitrust Probe

Google outlined proposals to European Union regulators in an effort to end an antitrust investigation into allegations that the operator of the world’s largest search engine discriminates against rivals.

Google Executive Chairman Eric Schmidt sent EU antitrust chief Joaquin Almunia a letter responding to the probe. The settlement offer addresses the “four areas the European Commission described” as potential concerns, Google spokesman Al Verney said. Almunia in May asked Google to make an offer to settle concerns it promotes its own specialist search services, copies rivals’ travel and restaurant reviews, and that agreements with websites and software developers stifle competition in the advertising industry. He said last month he would send Google an antitrust complaint, that could lead to a fine or limits on conduct, if the proposal was unsatisfactory. “Three of the four areas are relatively easy to address,” said Greg Sterling, a senior analyst at Opus Research. “The ‘concern’ about placement of ‘Google content’ in search results is more problematic given that it goes to the heart of Google’s ability to control its search experience and algorithm.”

Facebook email switch continues causing problems

After causing a raucous week by changing users' listed email addresses to ones ending in @facebook.com, Facebook's switch is causing yet another embarrassment for the company and problem for many users. The email switch has gone beyond the walls of Facebook, according to various users, who are saying that the change is affecting the emails listed in their contact books. Across the Web, people are saying the emails listed for many of their contacts in their address books have been replaced by @facebook.com emails.