Digital Daily » entertainment

Does This Mean We Can Expect a Live Nation "iTunes Convenience Fee"?

John Paczkowski — Tue, 24 Nov 2009 20:10:08 +0000

This year, Live Nation, the world’s largest concert promoter, will put on some 22,000 live shows–each one attended by carping about the asinine “convenience” and “courtesy” charges the company likes to tack on to ticket purchases. Funny, isn’t it, how quickly a $28 show can become a $50 one?

But much as concertgoers might loathe the idea of giving Live Nation (LYV) even more of their money, they may soon do so. Because beginning today, the company is offering exclusive audio and video recordings of some of its events through Apple (AAPL) iTunes. Prices start at $7.99, which seems astonishingly reasonable for live recordings of this quality. More so when you factor in Live Nation’s involvement.

Not an original idea, by any means; Metallica, Primus, The Pixies, Phish and others have been peddling soundboard recordings of their shows through their official sites for years now. But this is the first time, I think, that we’re seeing the live side of the music business really leverage iTunes and its massive installed base.

And, let’s face it, this is a great idea, indeed. I saw two live shows in the past few months and happily paid $10 and $14 for soundboard recordings of each. But I had to spend some time seeking them out, creating a new customer profile, etc. It would have been much nicer to just fire up iTunes and buy them both with one click.

Weekend Update 11.21.09–The House of Cards Edition

Drake Martinet — Sat, 21 Nov 2009 20:30:55 +0000

In tough economic times like these, even the biggest businesses get the urge to restructure, reorg and reshuffle.

Kara began Monday with some of the hard facts from the pending AOL-TimeWarner (TWX) split. Stock issued for the post-spinoff AOL places the company’s total implied value at around $3 billion. Also on the list of stuff from 1994 being jettisoned from tech companies is the original instant messenger, ICQ. Kara reported that AOL seeks to shed the brand in an effort to keep the larger ship afloat. Over at Yahoo (YHOO), Kara opened the lid on CEO Carol Bartz’s shifting of top execs. In Silicon Valley’s house of cards, everyone watches out for a shuffle.

Over at Digital Daily, John brought some hard numbers to the stresses being felt by AT&T’s (T) 3G network thanks to a certain fruit-flavored smartphone. It seems that the iPhone is largely responsible for the 2,000 percent increase in data traffic in the San Francisco Bay Area compared with a year ago. (Weekend Update doesn’t claim sole responsibility.) Keeping up with layoff news these days is almost a full-time job. It’s a good thing Paczkowski is on the case. This week, Sony-Ericsson let roughly 2,000 employees go. The firm plans to shutter whole offices in both the United States and abroad. John finished strong with a whole slew of posts about the forthcoming Google (GOOG) Chrome OS, which was released in a developer’s beta this week. Next year, the good kids may be getting their stockings filled with Chrome rather than Apples.

You can never tell what MediaMemo will have up its sleeve in a given week, and this one was no exception. Peter came in early with reports that Wired magazine is another publication betting on a certain tablet. Wired may pave the way for other Condé Nast publication e-editions. From the department of “Hey, it looks like it worked for them,” a couple of music giants will release a Hulu-like service for music videos. No word yet on whether the Internet killed the video star. Peter closed it out this week with the fizzle that will be Oprah’s broadcast career. The talk-show-host-turned-deity will end her broadcast career in 2011, but may not be sorely missed by CBS, according to MediaMemo. Everyone is pretty torn up about Gail leaving though.

Personal Technology went a little off the reservation this week and covered an intriguing specialty gadget with a very specific target audience. The reading aid for the visually impaired is unusual for many reasons, not the least of which is that its branded Intel (INTC) both on the inside and outside. The reader uses a downward-facing camera to read text and translate it directly to speech. Walt was pleased with the device on the whole, though he encountered some bugs and a somewhat steep learning curve that may be a function of the novel nature of the product. Over at Mossberg’s Mailbox, the lead question this week was about data loss. Once the geek shudders stopped, Walt let the reader know that there are many alternatives to Apple’s (AAPL) Time Capsule drives, and the integrated Time Machine option is one useful alternative. At Mossberg Solution, Katie won a fight with a Pixi and brought us the blow-by-blow account. The cheap-and-cheerful version of the Palm (PALM) Pre features a stripped-down price. That savings came at too high a performance cost, said Katie. She praised Palms webOS, but came down on the side of spending a little more to get the Pre.

Stay tuned and check back often. Weekend Update will be back next week as long as we can make it out for the Black Friday sales with all our fingers and toes.

Chrome OS: "Turning On a PC Should Be Like Turning On Your TV"

John Paczkowski — Thu, 19 Nov 2009 19:59:51 +0000

Direct from Google headquarters, and liveblogged by John Paczkowski, Google’s Sundar Pichai, vice president of product management and Matthew Papakipos, engineering director for Google Chrome OS, explain some of the advantages of the operating system. This is the second of three segments:

Among Chrome OS’s advantages: Speed, simplicity and security. Every application will be a Web application. There will be no desktop apps. Chrome OS is essentially a browser with a few modifications. All data in the Chrome OS reside in the cloud. Pichai: “We want all of personal computing to work that way….If I lose my Chrome machine, I should be able to go out, buy a new [one] and re-create my previous computing experience easily.” Chrome OS will run completely inside the browser security model, he adds, noting that security is one of Google’s (GOOG) top priorities along with speed. “Turning on a PC should be like turning on your TV,” he says.

Chrome OS is very similar in appearance to the Chrome browser. “Chrome OS is Chrome,” says Pichai. Google made it look like a browser, because the browser is familiar.

And indeed, Chrome OS does look quite a bit like a browser. Multiple apps load into tabs, for example. It also features “Panels,” which Pichai describes as persistent lightweight windows. “All Chrome data resides in the cloud. Anything you put in the machine is immediately available to you anywhere.”

As netbooks become more advanced and battery life improves, they will evolve into entertainment devices, says Pichai, who notes that via Google Books, a netbook can become an e-reader, and through YouTube, a video device.

A quick demo of the user interface, which seems very simple and intuitive. “It just works,” says Pichai in an unintentional nod to Apple (AAPL). An interesting remark: Anyone who writes an app for the Web has written an app for Chrome, says Pichai, joking that Microsoft (MSFT) is already developing for it.

Speed, simplicity and security, says Pichai. We’re trying to make the computing experience delightful.

With that, Sundar Pichai hands the stage over to Engineering Director Matt Papakipos.

Papakipos, too, offers the “we want to make computing delightful” sound byte and notes once again that turning on the PC should be like turning on the TV.

Chrome OS eliminates the bootloader, auto-launching the browser. The OS also auto-updates itself, making sure that it’s always current with security patches, etc. Everything from the firmware to the kernel is secured with a cryptographic signature to ensure a secure boot. In the event malware is detected, the system repairs itself automatically.

The basic application security protocol for current operating systems allows apps the same privileges as the user. This presents obvious security issues. Whenever you install a new app, you’re taking a risk, says Papakipos. But Web applications like those that Chrome OS use are different. They are Web apps so they don’t have system-level privileges. Additionally, all apps run in secured sandboxes that are separate from one other and from the OS. Finally, all apps must be signed and verified before each use.

In terms of file systems, Chrome’s is locked down. It’s a read-only root-file system, obviously quite different from other operating systems. All user data are encrypted and synched to the cloud. Essentially, Google uses the PC for caching. Again, if you should lose your machine, you buy a new one, fire it up and it synchs with the cloud, restoring your previous computing experience.

Google's Chrome OS: "It Just Works"

John Paczkowski — Thu, 19 Nov 2009 17:51:03 +0000

Speaking at Microsoft’s Worldwide Partner Conference in New Orleans this past July, Microsoft CEO Steve Ballmer said of Google’s forthcoming Chrome OS, “Who knows what this thing is?”

Today, he found out. The operating system, a direct challenge to Microsoft Windows, was on display at a media gathering at the Google HQ this morning.

Sundar Pichai, vice president of product management, and Matthew Papakipos, engineering director for Google Chrome OS, presided over the event, which the company described as a “technical announcement.”

That meant that Google (GOOG) was not releasing a beta of the operating system this week, as had been rumored.

That said, it was an overview of Chrome, as well as Google’s plans for its launch in 2010, so let the Chrome OS liveblogging begin:

There will be no beta today. Pichai says Google is still a year away from an official launch. However, the company is making the code available today.
Pichai says that a year after launch, the Chrome browser has some 40 millions users. He boasts about the browser’s speed, noting that it handles Javascript 39 times faster than Microsoft’s (MSFT) Internet Explorer. There will be three more big Chrome announcements sometime in the future: Chrome for Mac, Chrome for Linux and the debut of Chrome Extensions.
Google’s goal is to ensure that Web applications function as well as desktop apps. Pichai says that the company is figuring out a way for Web apps to safely take advantage of the operating system in the way desktop apps do. A few examples: Graphics, video/audio applications, real-time communication, notification and local storage.

“By 2010 we expect to have all these things built into Chrome,” Pichai adds.
The advent of Chrome coincides with a perfect storm of converging trends, Pichai says, noting the tremendous popularity of netbooks during the recession, the growing acceptance of cloud apps and the rapid innovation in mobile devices. Smartphones are becoming more like laptops, Pichai adds, and laptops are becoming more like smartphones. Is there a better level of computing available for these devices?

There is, according to Pichai, and Google believes it is Chrome OS.
Among Chrome OS’s advantages, Pichai says: Speed, simplicity and security. Every application will be a Web application. There will be no desktop apps. Chrome OS is essentially a browser with a few modifications. All data in the Chrome OS resides in the cloud. Pichai: “We want all of personal computing to work that way….If I lose my Chrome machine, I should be able to go out, buy a new [one] and re-create my previous computing experience easily.”

Chrome OS will run completely inside the browser security model, he adds, noting that security is one of Google’s top priorities along with speed. “Turning on a PC should be like turning on your TV,” he says.
Chrome OS is very similar in appearance to the Chrome browser. “Chrome OS is Chrome,” says Pichai. Google made it look like a browser, because the browser is familiar.
And indeed, Chrome OS does look quite a bit like a browser. Multiple apps load into tabs, for example. It also features “Panels,” which Pichai describes as persistent lightweight windows. “All Chrome data resides in the cloud. Anything you put in the machine is immediately available to you anywhere.”
As netbooks become more advanced and battery life improves, they will evolve into entertainment devices, says Pichai, who notes that via Google Books, a netbook can become an e-reader, and, through YouTube, a video device.
A quick demo of the user interface, which seems very simple and intuitive. “It just works,” says Pichai in an unintentional nod to Apple (AAPL).

An interesting remark: Anyone who writes an app for the Web has written an app for Chrome, says Pichai, joking that Microsoft is already developing for it.
Speed, simplicity and security, says Pichai. We’re trying to make the computing experience delightful.

With that, Pichai hands the stage over to Engineering Director Matt Papakipos.

Papakipos, too, offers the “we want to make computing delightful” sound byte and notes once again that turning on the PC should be like turning on the TV.
Chrome OS eliminates the bootloader, auto-launching the browser. The OS also auto-updates itself, making sure that it’s always current with security patches, etc. Everything from the firmware to the kernel is secured with a cryptographic signature to ensure a secure boot. In the event malware is detected, the system repairs itself automatically.
The basic application security protocol for current operating systems allows apps the same privileges as the user. This presents obvious security issues. Whenever you install a new app, you’re taking a risk, says Papakipos.

But Web applications like those that Chrome OS use, are different. They are Web apps, so they don’t have system-level privileges. Additionally, all apps run in secured sandboxes that are separate from one other and from the OS. Finally, all apps must be signed and verified before each use.
In terms of file systems, Chrome’s is locked down. It’s a read-only root-file system, obviously quite different from other operating systems. All user data are encrypted and synched to the cloud. Essentially, Google uses the PC for caching. Again, if you should lose your machine, you buy a new one, fire it up and it synchs with the cloud, restoring your previous computing experience.
How will Google bring Chrome OS to market? The company is working with vendors to specify reference hardware. You cannot download and install Chrome on just any device, you will have to purchase a Chrome device. Google is looking at a launch window of late 2010, before the holidays.
Google sounds very concerned about the end-user Chrome OS experience. Pichai says the company wants to ensure that the displays, keyboard, etc., on the netbooks that run Chrome are robust and easy to use.
Pichai wraps things up, but before the Q&A, we’re shown a short explanatory video. “The first thing I want to do when I fire up my computer is browse the Internet….If there isn’t any Internet, I might not even use my computer….What if when you pressed on, your PC turned on, what if your operating system was more like a Web browser…what if it was a browser?…Chrome OS is a totally rethought computer that lets you focus on the Internet, which is what most of use our computers for these days anyway.”

Q&A

At this point, Pichai opens the event to questions:

If you’re specifying hardware components, do you must have an idea of what they’ll cost?

A: We expect Chrome netbooks to be in the price range of what people have come to expect….We are not specifying a price target. Price will be determined at the OEM level.

Will the APIs support W3C standards?

A: We’re working very closely with the W3C to standardize as much as we can….In general, we want to see everything standardized across multiple browsers.

Will there be an application store?

A: The Web offers hundreds of millions of applications. Our job is to make people aware of them.

What about desktop applications that are not available on the Web?

A: We expect most of our users to have a second machine at home….Chrome OS is about a delightful experience on the Web….If you’re a lawyer spending your entire day on contracts, etc., this is not the machine for you.

Will you support Microsoft Silverlight?

A: In the case of certain selection plug-ins, we are working to integrate them. No comment beyond that.

Since Chrome is open source, could people build their own variations?

A: Yes. We expect people will do many interesting things with it.

Do you see Chrome running on laptops or desktops?

A: We’re initially focused on netbook-like form factors–clamshells, etc. That said, the OS is being developed to work on other devices.

Is there any level of offline access? What happens when I’m on a plane and don’t want to pay for Wi-Fi?

A: Chrome devices are primarily intended to be Internet-connected. That said, it will have some caching abilities so, for example, you could play a game offline.

Virtualization?

A: Yes. You could run Chrome today on a virtual machine.

Are you working with outfits like Adobe to, say, build a Web-friendly version of Photoshop?

A: We’re very excited by things like Photoshop on the Web and we’re working hard to make that possible.

Will Android apps work on Chrome? Are there plans for third-party apps?

A: [Pichai dodges this one.] If it’s a Web app, it will work on Chrome. The Web works very, very well for our purposes.

Will Chrome work on both X86 and ARM?

A: Yes.

Is there a direct business model for Chrome OS or is this another variation of the-more-people-that-use-the-Web-the-better-for-Google?

A: We are working with partners. No plans for advertising. That said, Pichai notes again that anything that runs on the Web will run on Chrome. And of course, AdWords does, indeed, run on the Web.

[Sergey Brin joins the Q&A]

Do you want Android Apps to run on Chrome?

A: We are focused on creating the use case in which everything is a Web application, but hopefully we can do more in the future.

How does Chrome handle peripherals? Can it print?

A: Most keyboards, cameras, phones, etc., will work. In terms of printing…yes, Chrome OS will print and we’re working hard to make that possible.

What is Chrome’s strategic position for Google?

A: [Brin]: Call us dumb businessmen, but we really focus on user needs rather than focus on business strategies. We believe that the Web platform is a much simpler way of computing for individuals to use, and that’s a very important need in the market right now. That’s what we’re trying to fulfill.

Sirius XM CEO "Perfect" to Run Comcast-NBCU–Not That Sirius XM CEO Would Want To

John Paczkowski — Tue, 17 Nov 2009 12:31:04 +0000

Good thing Comcast (CMCSA) and General Electric (GE) plan to name NBC Universal Chief Executive Jeff Zucker as head of their proposed joint venture, because Sirius XM (SIRI) CEO Mel Karmazin doesn’t want the job. Not that he wouldn’t be a good candidate to run a merged Comcast-NBCU. Because as Karmazin himself told Fox Business Network’s Neil Cavuto, he’d be an excellent choice.

“There would be no question that I would be perfect to run it,” Karmazin said. “But there is no chance that I will ever take another job outside of Sirius XM. I just renewed my contract. It’s exactly what I want.”

Exactly what he wants, except maybe for that perennially-under-a-dollar share price–though according to Karmazin, that’s going to change. “I think today, you’ll start to see quarter after quarter of growth,” he said. “You’ll see us making free cash flow. You’ll see us with…over $2.5 billion of revenue. We’ll start to make money, and we’ll start to keep investing in content. And I think our future will be great.”

Unassuming guy, that Karmazin…

YouTube, Univision and Google: The Three Amigos

John Paczkowski — Mon, 16 Nov 2009 18:05:59 +0000

Univision, home to TV staples “Sabado Gigante,” “El Show de Cristina” and “Tormenta en el Paraiso,” is coming to YouTube. This morning, the Spanish-language media outfit announced a deal that will see its programming featured on Google’s (GOOG) video site.

Under terms of the deal, a mix of new and library content from Univision, TeleFutura and Galavision TV programs will be featured and promoted throughout YouTube.

The deal, which marks the first time any Univision programming is available on the Web outside of its own properties, is part of YouTube’s effort to cater to one of the fastest growing segments of online users: The Hispanic community.

“We’ve seen 6.5 million Hispanic adults visit YouTube in the last year,” Chris Maxcy, head of content partnerships at YouTube, said during a call discussing the announcement. “That’s up 80 percent….To date our focus has mostly been on English language space….The Hispanic audience has been overlooked, yet it’s one of the fastest growing communities online.”

The official release:

UNIVISION BECOMES A PREMIER SPANISH-LANGUAGE CONTENT PARTNER WITH YOUTUBE

Partnership Marks One of the Most Comprehensive Deals of Full-Length Programming for YouTube and Brings YouTube’s Hispanic Community in the U.S. Top Programming from Univision’s Three Major Networks
NEW YORK, NY, November 16, 2009 — Univision Interactive Media, Inc., the digital division of Univision Communications Inc., the leading Spanish-language media company in the United States, today announced that it is partnering with YouTube to make short-length and long-form Univision videos available on the YouTube.com website.

“This is a very exciting milestone, as it represents the first time that any Univision programming is available on the Web outside our own properties in both a long and short form format,” said Kevin Conroy, president of Univision Interactive Media, Inc. “This partnership uniquely extends our reach to our audience and solidifies our position as the leading Spanish-language video provider for U.S. Hispanics with unparalleled programming in all respects.”

“Clearly, Univision has established itself as a premier provider of Spanish-language television content here in the U.S.,” said Chris Maxcy Head of Content Partnerships at YouTube. “This deal is a big win for us and marks one of the most comprehensive partnerships for full-length programming signed to date. There is a huge demand to watch Spanish-language content on YouTube. With this new partnership, our community here in the U.S. can watch and enjoy both short-length and long-form programming from Univision’s three major networks on our platform.”

Univision, TeleFutura and Galavisión television programs will be featured and promoted throughout the YouTube.com website. Content will be updated to include relevant offerings as well as an extensive archive of library programs. In addition to top Univision shows, users will have access to Univision.com videos across key content categories, as well as unique footage from Univision celebrity interviews and special events such as next year’s “Premio Lo Nuestro a la Música Latina” (Lo Nuestro Latin Music Awards). Univision will also be using YouTube’s leading Content ID technology to more effectively track user engagement and monetize Univision content uploaded by YouTube users.

This partnership solidifies Univision Interactive Media’s leadership position as it provides premier advertisers with unique sponsorship opportunities, including new inventory for display ads. This further establishes Univision Interactive Media as the ideal vehicle for advertisers to connect with U.S. Hispanics anytime, anywhere.

Sony: Bad Tidings We Bring to You and Your Kin

John Paczkowski — Mon, 16 Nov 2009 17:29:52 +0000

Reporting disappointing second-quarter earnings a few weeks back, Sony warned that the Christmas shopping period would likely be a weak one. “We are quite cautious in foreseeing end-of-year sales,” Sony CFO Nobuyuki Oneda said at the time. “In the first quarter and second quarter there was an upside in sales, but the critical moment is the Christmas season and we are not too optimistic.”

With the consumer electronic industry still languishing, Sony (SNE) has little reason to be optimistic. In an interview with Italian business daily Il Sole 24 Ore, CEO Howard Stringer said he’s seen little sign of a recovery in Sony’s business. “From my viewpoint, that of Sony and its consumer electronics products the picture for the time being has not improved very much,” Stringer said. “There hasn’t been that turning point that many had hoped for. We are waiting for a signal that hasn’t arrived.”

Dell Dials Up Smartphones

John Paczkowski — Fri, 13 Nov 2009 19:00:53 +0000

[ See post to watch video ]

Videogame Industry Suffers Massively Multiplayer Sales Decline

John Paczkowski — Fri, 13 Nov 2009 13:50:09 +0000

If the latest sales data are any indication, the videogame industry may be headed for a rough holiday season. NPD Group reports that revenue from consoles and software plummeted during October, falling 16.4 percent from September and 19 percent year-over-year. It was the industry’s seventh consecutive monthly decline.

“The continued economic turmoil, and in particular the troubling unemployment rate, is undoubtedly impacting industry sales,” said NPD analyst Anita Frazier. “Our latest Economy Tracker indicated that although consumers’ general opinion about the economy is improving, their outlook on their own personal situation is worsening. If consumers’ personal outlook continues to erode, they could very well be much more conservative with their holiday shopping this year.”

A somber warning for the videogame industry. Even recent price cuts on game consoles have done little to spur demand.

“Year to date, the hardware category has experienced the sharpest decline in the industry, with unit sales down 10 percent compared to the same time period last year,” Frazier wrote. “Recent price cuts helped spur a one- to two-month increase in unit sales, and this month’s Wii sales reflect that boost, but the other platforms have not sustained the sales momentum after price reduction.”

The videogame industry may be recession-resistant, but it is clearly not recession-proof, as some once believed. Sales data, below.

U.S. Hardware Sales, October 2009

Wii 506.9K

Nintendo DS 457.6K

PlayStation 3 320.6K

Xbox 360 249.7K

PSP 174.6K

PlayStation 2 117.8K

U.S. Top Ten Software Sales, October 2009

Uncharted 2: Among Thieves (PS3, Sony) 537,000

Wii Fit Plus (Wii, Nintendo) 441,000

Borderlands (360, Take 2) 418,000

Wii Sports Resort (Wii, Nintendo) 314,000

NBA 2K10 (360, Take 2) 311,000

Halo 3: ODST (360, Microsoft) 271,000

NBA 2K10 (PS3, Take 2) 213,000

Forza Motorsport 3 (360, Microsoft) 175,000

Kingdom Hearts 358/2 Days (DS, Square Enix) 169,000

FIFA Soccer 10 (360, Electronic Arts) 156,000

Google Blows Book Search Deal Deadline

John Paczkowski — Mon, 09 Nov 2009 22:36:07 +0000

Google’s five-year-old copyright feud with the publishing industry will drag on a few days more now that the deadline for submitting a revised settlement proposal has been pushed back once again. Google (GOOG) and attorneys representing the Authors Guild and the Association of American Publishers were supposed to file the document today, but instead asked the judge overseeing the matter to give them until the end of the week.

“The parties have been in discussions with the Department of Justice both prior to and since the October 7 status conference,” attorney Michael Boni explained in a letter requesting the extension. “We met with the Department as recently as this past Friday, November 6. In light of the above, the parties respectfully request this additional time to file the motion.”

It would seem, then, that the latest version of the settlement did not adequately address the DOJ’s concerns that the agreement could violate antitrust law by giving Google “de facto exclusive rights for the digital distribution of orphan works.” Presumably if it had, it would have been filed on time.

Electronic Arts to Sack 1,500

John Paczkowski — Mon, 09 Nov 2009 22:06:09 +0000

Reporting a second-quarter loss that widened thanks to a weak videogame market, Electronic Arts (ERTS) today said it will cut 1,500 jobs by early next year as part of a restructuring effort aimed at trimming at least $100 million in costs. This after announcing plans this morning to acquire social network game maker Playfish for $400 million.

“EA is performing well, with quality, sales and segment share up so far this year,” EA CEO John Riccitiello said in a statement. “We are making tough calls to cut costs in targeted areas and investing more in our biggest games and digital businesses.”

EA Hooks Playfish

John Paczkowski — Mon, 09 Nov 2009 17:34:40 +0000

Electronic Arts is betting big on social gaming. This morning, the videogame publisher said it will acquire social network games maker Playfish for $400 million. An interesting move given that Playfish COO Sebastien de Halleux dismissed rumors of such a deal just last month.

Under terms of the deal, EA (ERTS) will initially pay $300 million for the developer of such social games as Pet Society, Who Has the Biggest Brain and Restaurant City, including a $25 million retention agreement with Playfish employees. It will subsequently pay $100 million more if the company meets undisclosed profit targets.

By acquiring Playfish, EA is not only validating the social gaming market, but perhaps setting the valuation benchmark for Mafia Wars creators Zynga, which is expected to go public next year. It also tempers–to some extent, anyway–concerns that the lead-generation scam controversy that recently blew up around Zynga and Playfish might harm their perceived value in the market.

“This deal came about very quickly, but let me say that Playfish was never ‘up for sale’,” de Halleux told PaidContent. “We were focused on building our business, because we believed—and still do—that the game industry is changing. EA approached, and we realized that we could be in a better position to act as an agent of change, through them. We could build games and attract users on our own, but this deal accelerates that to a degree that wouldn’t have been possible.”

“Social gaming, with its emphasis on friends and community, is seeing tremendous growth and this is the right time to invest to strengthen our participation in this space,” said Barry Cottle, senior vice president and general manager of EA Interactive. “With the addition of proven expertise from Playfish, their broad consumer base and strong game brands, we’re moving ahead aggressively in our plans to lead in the category of cross-platform social entertainment.”

If there was ever a doubt that social networks might be a viable gaming platform, this acquisition pretty much obliterates it.

RealNetworks's Internal Layoff Memo

John Paczkowski — Fri, 06 Nov 2009 02:02:04 +0000

Earlier today, Kara Swisher reported in BoomTown that RealNetworks (RNWK) would sack four percent of its workforce–70 employees out of its 1,700-person staff.

Below, the official internal memo from RealNetworks Founder, Chairman and CEO Rob Glaser, breaking the bad news:

Team–

I’m writing to share some important and unpleasant news with all of you. Today we are implementing a reduction in force primarily within our TPS and MSS divisions, as well as in a few of our shared services groups. Approximately 70 employees around the globe are impacted, which represents about 4% of our total workforce. Of these 70 employees, 51% are located within the US and 49% came from our international locations.

These staff reductions are a result of some trends and strategic decisions in our TPS and MSS businesses. I’d bucket the reductions into three categories–efficiency gains associated with eliminating or streamlining duplication of effort, businesses that have been impacted by the recession and/or cyclical downturns where we need to lower our costs and get more efficient, and slower growth businesses in which we have decided to reduce our investments so we can instead invest in areas with better growth prospects.

As a result of these changes being made today, the TPS and MSS divisions are now better positioned to continue to weather the economic storm in the short-term and to thrive and grow in the long-term. On behalf of everyone on the senior management team I would like to extend my thanks and appreciation to everyone being affected by today’s actions for their contributions to our company. We are offering all impacted employees generous severance packages and we are working closely with the affected teams to ensure a smooth and professional transition. Additionally, we are encouraging impacted employees to look for other roles within the company, and HR will assist them in this process.

Thank for your support and understanding.

Rob

Sirius Turns a Corner?

John Paczkowski — Thu, 05 Nov 2009 19:00:34 +0000

[ See post to watch video ]

Sirius Breaks Even

John Paczkowski — Thu, 05 Nov 2009 13:12:37 +0000

Sirius XM Radio’s financial position is improving. Sadly, the same cannot be said for its subscribership. Reporting third-quarter earnings this morning, the company posted a loss of $149.1 million, or four cents a share on revenue that rose to $629.6 million from $612.8 million. Quite a bit better than its year-earlier loss of $4.88 billion, or $1.93 a share.

Absent one-time charges, the company broke even for the quarter. Analysts had been expecting a two-cent loss on revenue of $609 million.

Good news, but it was tempered with a bit of bad. Because Sirius’s (SIRI) subscriber growth is slowing. The company ended the quarter with 18.5 million total subscribers. That’s up 103,000 from the second quarter, but down 2.1 percent from a year earlier.

“We are very pleased with what we accomplished during the third quarter, especially when considering the macroeconomic issues affecting consumers and the auto industry,” Sirius CEO Mel Karmazin said in a statement.

“We managed to grow revenue, grow ARPU, reduce operating costs, increase adjusted income from operations significantly, and refinance higher cost debt,” Karmazin added. “We look forward to continuing this performance. We grew subscribers and improved churn in the quarter, and we are well positioned to take advantage of an economic rebound. We expect to grow subscribers, revenue, and cash flow next year regardless of the magnitude of any recovery.”