iPhone 3G: Around the Globe

iphone 3g With iTunes, buying music has always been easy.  Apple insured that with a clear pricing structure.  They enforced it through aggressive negotiations with music labels and video producers.  Buying the new iPhone won’t quite be as easy.  The 3G phone is due in a blink, 8am on July 11th.  In anticipation, global carrier partners have been rapidly revealing their pricing plans and service agreement requirements.  While the 8Gb model is likely to stay near the projected maximum unit price of $199 as Steve Jobs promised in his Developers Conference Keynote, service offerings and subsidies are set to vary widely.  The details will be in the fine print.

A QUICK GLOBAL SURVEY OF CARRIER PLANS

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Blockbuster Sees Light, Drops Circuit City

bbi circuit city offThe proposed marriage of Blockbuster and Circuit City always seemed wrong; like two actors that peaked early, fell from favor and were looking for mutual salvation in a questionable, improbable union.  It didn’t make sense.  It didn’t feel right.  The common ground seemed to be troubles not opportunities.   Given that, the odds of one company salvaging the other, of Blockbuster resuscitating the struggling business of Circuit City, seemed small.  Luckily for Blockbuster shareholders, CEO Jim Keyes reached the same conclusion before he walked the company into the Elvis Wedding Chapel and said “I Do.”

Wednesday, Blockbuster officially withdrew its $1.35billion ($6 to $8/share) offer.   All it took was a close inspection of Circuit City’s books.

The review process began in May Click to Read More

Gaming and Music Convergence: Guitar Hero Aerosmith Debuts

gh-up.jpgAerosmith has sold more than 150 million albums (66m + in the U.S.) over four decades of Rock but they haven’t released a new one since 2001.  In today’s music world, that may not matter much when it comes time to receive royalty checks.   Guitar Hero: Aerosmith, the first single-band specific version of Activision’s bestselling video game, released Sunday.  If it does well, the band stands to draw a sizable income without having to hit the studio anew.

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AdSense for Distribution: Google Partners with MRC and McFarlane on Original Video Content

adsense mcfarlaneAdvertising dollars are the fuel of the Internet but in some segments like online videos, the process of attracting it seems like something from Frankenstein’s lab.  Nobody yet knows the exact chemistry it will take to balance audience acceptance (or tolerance) for advertising against advertiser required metrics for measurement of return on investment.  By best guess, the answer could be a combination of existing tools, or even a business model not yet invented. It’s a crapshoot. Tea Leaves and gambles.

Google with its huge share of search and video traffic (YouTube) has a vested interest in figuring out the how to make it work.  Unlike all but a few companies, Google also has the kind of cash and technical expertise to take on the science project without limitation.  They can afford to fail, repeatedly, than try again until they get it right. 

The latest experiment from Mountain View Click to Read More

Rhapsody Goes DRM-Free and Ala Carte

rhapsody changesIt takes money to make money sometimes.  Will $50 million be enough to steal some cash and market share from Apple’s dominant iTunes digital content store?  That is a question digital music service Rhapsody is hoping to answer.

Under a new strategy revealed Monday, Rhapsody will begin selling a la carte, single-song MP3 downloads without restriction.   All of the music will be offered at a variable bit rate of 256kb and it will have no digital rights management encryption (DRM).  Accordingly, it will be playable on any device, including iPods and iPhones. 

Music bought over an internet connection will be priced at 99cents a song, or $9.99 an album.  Music bought through a Verizon mobile phone via vCast will cost $1.99. The higher mobile premium will include one direct download and a second “master copy” sent to a home computer.

The changes break from what had long been Rhapsody’s approach to music sales. Click to Read More

Sony Plants Flag in Living Room: Aims for Lead in Connected Electronics

playtvA week ago, at Sony’s annual meeting, Howard Stringer said the company’s top priority was “to restore profitability in [the] television and game businesses;” both of which lost money during the last fiscal year.  Thursday, Sony began to publicly outline their blueprint for making that happen.  At the center of it, a keystone they say, will be networking – connected entertainment appliances.

Sony is planning to spend $16.7b (1.8 trillion Yen) over three years (through March 2011).  The aim will be to become “the leading global provider of networking consumer electronics,” Stringer says.  By the end of the process 90% of Sony’s product categories will have networking and wireless capabilities. 

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Musical Executive Chairs: Yahoos Re-org

board chairsCalling it a “realignment to support core strategies” Yahoo officially announced(release) the seating chart from their game of executive musical chairs

The reorganization will create three organizational units that  report to President Sue Decker.

The first group, named the Audience Products Division, will be lead by Ash Patel.  He was previously responsible for Platforms and Infrastructure.  He’ll oversee the management of existing and future product lines.

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