May 2013

Netflix wants to spend up to 15 percent of its content cash on originals

Netflix wants to spend up to 15 percent of its entire licensing budget on the production of original content within the next few years, according to Chief Content Officer, Ted Sarandos, who said at the Nomura 3rd Annual U.S. Media & Telecom Summit in New York that the company is going to keep growing its original output over the next few years, with the goal of roughly doubling the number of titles within the next 18 months.

The Human Side of Cyber Threats

[Commentary] The escalation of advanced persistent threats to federal systems has cybersecurity leaders rethinking their network protection and risk mitigation strategies. Nearly 50,000 incidents were reported by agencies in fiscal 2012, a 5 percent increase over the previous year. The Obama Administration’s response to these threats underscores the danger of cyberattacks. A February executive order, for instance, mandated the development of a framework to protect the nation’s critical infrastructure from such threats, and President Obama’s fiscal 2014 budget proposal calls for an $800 million increase in Defense Department spending on cybersecurity. The increase in threat activity points to an uncomfortable reality: There is no such thing as absolute safety.

All Your Worst Fears About Google Glass Are Coming True, and It's All Your Fault

It only took about six weeks for developers to take all of the theoretically creepy things the Internet dreamt up about the face computer of the future and turn those into real-life Google Glass nightmares.

In addition to that creepy walking-and-stalking app Wink, Glassholes can look forward to a porn app, plus apps that that take advantage of an upcoming facial recognition API. Yes, the reality of Glass wearers surreptitiously watching sex videos is upon us. For most people, however, Google's new facial recognition API presents a more terrifying scenario in terms of creepiness — you know, because of the privacy implications.

Adding Insult to Injury for Sandy Victims: 911 Calls May Not Go Through on New Verizon Phone Service

[Commentary] Months after Hurricane Sandy damaged Verizon’s traditional copper phone network in Fire Island, NY, Verizon has made it clear that it does not intend to repair its infrastructure in the recovering community. Instead, Verizon has announced plans to replace its wireline service in Fire Island and other hurricane-ravaged communities with an untested fixed wireless service called Voice Link. Verizon has been eager to tell subscribers that Voice Link offers “the same 911 support” and “many of the same voice features and functions” as their old landline phones did.

In New Jersey, Verizon even sent around a mailer saying “Our technicians connect Voice Link into the telephone lines in your home, allowing you to use your home telephones to make and receive calls just like you did before.” But Verizon’s frequent public pronouncements that its Voice Link service is basically the same as its former copper network service is belied by a filing the New York Public Service Commission required Verizon to submit last week. In that filing, Verizon revealed that Voice Link service will be significantly limited compared to the wireline service Fire Island residents were used to.

What’s Behind Dish’s Higher Bid for Clearwire?

Is Clearwire a diamond in the rough, making it the real prize? Or is Dish just trying to mess with Sprint?

Perhaps if Dish’s offer gains strong interest from Clearwire, Dish can use it as a bargaining chip in its efforts to obtain Sprint. Dish’s motivation could be a combination of those two factors. Dish knew when it made its initial offers for Clearwire and Sprint that it faced a huge struggle to obtain either company, as Sprint has many contractual locks on Clearwire — just as Softbank has on Sprint. So it’s not surprising that Dish is trying a wide range of tactics to gain the additional spectrum and expertise it needs — and perhaps those tactics include upping its Clearwire bid as a negotiation ploy with Sprint. But although Clearwire initially may not seem like much of a prize, it has huge spectrum holdings. And even though that spectrum in some markets currently supports WiMax, a technology that didn’t gain much traction in the U.S., concerns such as those are becoming less and less important nowadays. As bandwidth demand continues to climb and with few new sources of spectrum likely to become available any time soon, it’s important not to underestimate the value of Clearwire’s spectrum holdings – even if some of that spectrum would have to be repurposed.

Chicago Sun-Times cuts entire photography staff

The Chicago Sun-Times and its sister suburban papers have eliminated their photography staff and will ask the papers' reporters to provide more photography and video for their stories.

Managers at Sun-Times Media Holdings LLC, the Wrapports LLC unit that owns the papers, told the photographers in a meeting this morning that it was cutting their jobs, according to people familiar with the situation. The number of full-time workers affected is about 20, but including part-time and freelance employees, it could be closer to 30, they said. While the company still will hire professional freelance photographers for coverage, it will increasingly rely on reporters to take photos and video to accompany their stories, the sources said.

US Cellular spectrum partner bewails absence of Band 12 in Apple's iPhone

King Street Wireless, which is U.S. Cellular's spectrum partner, reiterated calls for the Federal Communications Commission to mandate interoperability in the 700 MHz band, noting that without such a directive the companies won't be able to offer an iPhone that works over the companies' 700 MHz spectrum.

"Both KSW and USCC want to offer the iPhone; Apple will not offer any Band 12 products, so KSW cannot offer the iPhone over its 700 MHz spectrum; and the only way that USCC can access the iPhone is over 850 MHz spectrum, for which it is independently licensed," King Street wrote in a recent FCC filing. "When all of these factors are put together, it is absolutely clear that due to a lack of interoperability, KSW has no opportunity to provide service to customers who want the iPhone. The only positive aspect of this situation is that it clearly demonstrates the need for interoperability relief." King Street and other Lower 700 MHz A Block spectrum license holders have been urging the FCC for the past three and a half years to require LTE interoperability in the Lower 700 MHz band.

Internet cafes in Ohio face ban

In some parts of the world Internet cafes are places for video gamers to gather or for study-abroaders to email parents back home. But in Ohio, they are often used for online gambling -- and they might not be around much longer.

"These places are not regulated," says Tom Ott, reporter for the Cleveland Plain Dealer. "The actual activity at the machine level is not tracked." Internet cafes equipped with computer games resembling casino games have popped up across the state in strip malls and rural areas. They operate sort of like sweepstakes, where a user can buy time for, say, $20 and end up winning $2,000. "You go and ostensibly purchase Internet or phone time, and based on that purchase, you get points for games that are played on computers that function like slot machines," Ott says.

The Industrial Internet: The next great economic revolution

It's often argued that the most important era in U.S. history was the Industrial Revolution, that period from roughly 1760 to 1840 when almost every aspect of business and daily life changed. The shift from manual labor to machines, from wood to coal, from farms to cities -- those are just a few of the ways our world changed dramatically when a new era of U.S. economic power was born.

We are now at the beginning of the next great economic era, which is being ushered in by the Industrial Internet Revolution. Today's world has approximately 6.8 billion people and 12.5 billion connected devices. At the rate things are going, by 2020 we'll have about 7.6 billion people and 50 billion connected devices. What happens when we can merge the power of intelligent devices, intelligent systems, and intelligent automation with physical machines, facilities and networks? One answer is that an estimated $10 trillion to $15 trillion -- an amount nearly equal to the current U.S. economy -- will be added to the global GDP, according to Peter Evans, GE's director of global strategy and analytics, and Marco Annunziata, GE's chief economist.

Warren Buffett's newspaper group to buy The Roanoke Times

Warren Buffett’s BH Media Group will purchase The Roanoke Times from Landmark Media Enterprises.

Terry Jamerson, a vice president of BH Media and publisher of the Lynchburg News and Advance, has been named publisher of The Roanoke Times. Jamerson replaces Debbie Meade, who has been the Times’ publisher since 2007. The sale price of the newspaper, which has a daily circulation of 76,000 and 90,000 on Sundays, was not disclosed. BH Media has purchased more than a dozen newspapers in Virginia and other states in recent years.