“iDon’t have a real keyboard
iDon’t run simultaneous apps
iDon’t take night shots
iDon’t allow open development
iDon’t customize
iDon’t run widgets
iDon’t have interchangeable batteries
Everything iDon’t
DROID DOES”

Shown on Fox and CBS (CBS) during a pair of NFL football games Sunday afternoon, the ad clearly positions Droid as the mythical iPhone killer. And while that might seem foolhardy, perhaps even hubristic, those who’ve seen the Motorola (MOT)-designed device say it’s at the very least a worthy iPhone rival.

Says Boy Genius: “[This is] the Android device to beat, and easily the most impressive. From what we’ve been told, Google had a direct hand in the Motorola Droid. Something to the point of almost dictating every move Motorola made when designing and making the phone….the Droid, even in its non-final form, is the most impressive phone we’ve used since the iPhone. It’s positively amazing.”

A gushing endorsement of an unreleased device and as such, to be taken with a grain of salt. That said, it’s hard to believe Verizon (VZ) would go all out here without good reason. And make no mistake, the company is going all out, even to the point of licensing the “Droid” trademark from Lucasfilm.

This past weekend’s TV commercial and a Droid teaser site are clearly the beginning of a major marketing push intended to position Droid as the Apple (AAPL) iPhone’s better, or at least its equal. Little wonder then that Google (GOOG) CEO Eric Schmidt was so upbeat about Android’s future during the search engine company’s earnings call last week.

“Android adoption is literally about to explode,” Schmidt said. “You have all the necessary conditions, you have the vendors, you have the distribution and so forth. This is a very critical period with all of everything being delivered.”

PREVIOUSLY:

• Verizon to iPhone Users: “Want Five Times More 3G Coverage? There’s a Map for That.”
• Perhaps by “Devices Like the Pre,” Verizon CEO Meant the iPhone?
• Analyst: AT&T Screwed Without iPhone Exclusivity
• Q: Should Apple Bring the iPhone to Verizon? A: Yes.
• Apple, Verizon and the iPhone LiTE

Just as MediaMemo predicted, Walt Disney Co. has finally taken a stake in Hulu, the video-streaming site operated by General Electric’s (GE) NBC Universal, News Corp. (NWS) and Providence Equity Partners. Under the terms of the deal announced today, Disney will sign on as a joint partner in the venture and bring full-length episodes of long-absent programs like “Lost” and “Grey’s Anatomy” to Hulu. Financial terms and the structure of the deal weren’t disclosed, but sources say Disney’s stake in the venture will be close to 30 27 percent.

“From our landmark iTunes deal to our pioneering decision to stream ad supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today’s Hulu announcement is the next important step in that ongoing journey,” Disney CEO Bob Iger bloviated. “Disney and Hulu share a focus on delivering the highest-quality entertainment experience and we look forward to working with Hulu to build value for our consumers, our brands and our shareholders.”

A few points worth noting here before the full press release below. This is mostly a broadcast deal. Aside from a smattering of Disney Channel shows, it includes very little cable programming. There is, for example, nothing from ESPN. Presumably, that’s because Disney doesn’t want to upset the folks who actually pay to watch that stuff.

Disney’s decision to join Hulu shows the company is confident that the site’s audience is distinct enough from audiences served by cable, ABC.com and its other sites that there’s no real risk of cannibalizing them. And that runs contrary to what many networks assume about online.

Disappointingly, there’s no mention in the release of classic animation, whether shorts or features.

As MediaMemo has noted, this is a big deal for Hulu, which has now allied with three of the four big broadcast networks.

CBS (CBS) is now the sole holdout among big program providers. When asked about its position, a spokesman replied with this statement: “CBS has long employed open, non-exclusive content partnerships that allow fans across the internet to engage with our programming in such a way that we control our distribution, sales and profit. We continue to discuss similar arrangements with additional partners as we grow our online audience based on the strength of our content, and the passion of the communities it creates. The Company also believes that controlling our own rights for that content–in all media–preserves its value in a multi-platform business system.”

Disney (DIS) to Join NBC Universal, News Corporation and Providence Equity Partners as an Equity Owner of Hulu

LOS ANGELES–Hulu and The Walt Disney Company today announced that Disney, through a subsidiary of ABC Enterprises Inc., has agreed to join NBC Universal, News Corporation and Providence Equity Partners as a joint venture partner and equity owner of Hulu, a leading online aggregator of video content. Upon closing, the agreement will enhance Hulu’s programming line-up through the expanded online distribution of Disney’s most popular current and library primetime series and library feature films. In particular, full-length episodes of hit current and library programs like Lost, Grey’s Anatomy, Desperate Housewives, Private Practice, Ugly Betty, Scrubs, Greek, Hope and Faith, Less Than Perfect, Wizards of Waverly Place, Phineas and Ferb, Who Wants To Be A Millionaire, General Hospital, The View and The Secret Life of the American Teenager will soon be streamed on Hulu on an ad-supported basis.

“From our landmark iTunes deal to our pioneering decision to stream ad supported shows on our ABC.com player, Disney has sought to meet the constantly evolving viewing habits of our consumers, and today’s Hulu announcement is the next important step in that ongoing journey,” said Robert A. Iger, president and CEO, The Walt Disney Company. “Disney and Hulu share a focus on delivering the highest-quality entertainment experience and we look forward to working with Hulu to build value for our consumers, our brands and our shareholders.”

“We’re honored to welcome the Disney team in our mission to help people find and enjoy the world’s premium content, when, where and how they want it,” said Jason Kilar, CEO of Hulu. “With the addition of shows like Lost, Desperate Housewives, Grey’s Anatomy and many more to Hulu, we continue to aspire to deliver a service that users, advertisers and content owners unabashedly love.”

Following the closing, content available to Hulu users will include:

• Full-length episodes of ABC primetime programs like Lost, Grey’s Anatomy, Desperate Housewives, Ugly Betty, Samantha Who?, Scrubs, Private Practice and popular late night talk show Jimmy Kimmel Live
• Full-length episodes of hit ABC Family series like The Secret Life of the American Teenager and Greek
• Popular series from ABC Daytime and SOAPnet like General Hospital and The View
• Classic series from ABC’s library like Hope and Faith, Less Than Perfect, Commander in Chief, Who Wants To Be A Millionaire and Dancing with the Stars
• Select hit programs from Disney Channel like Wizards of Waverly Place and Phineas and Ferb which can be easily accessed from a new DISNEY location in the Channel section of Hulu.com
• Popular library titles from The Walt Disney Studios
• Short-form content including webisodes, sneak peeks and episode recaps from ABC Entertainment, ABC Family and SOAPnet
“Hulu, quite simply, now has the best premium content on the web,” said Peter Chernin, president and COO, News Corporation. “With three major networks and over 150 leading content providers providing content, combined with the best video user interface anywhere on the web, Hulu offers consumers the finest premium online video experience available today.”

“Hulu has shown that if you make quality content available on the web and combine it with an unbeatable user experience, viewers will come, and so will advertisers,” said Jeff Zucker, president and CEO, NBC Universal. “The addition of some of the best content Disney/ABC has to offer will only enhance Hulu’s standing as a top site for high quality video entertainment.”

Jonathan M. Nelson, CEO of Providence, said “Hulu is creating significant value for users, advertisers and content owners. This balance, together with aggregated professional content and an expanding base of over 200 brand advertisers, is establishing Hulu as a compelling online video monetization platform. Hulu is a bright spot in the new media landscape.”

The transaction is subject to customary closing conditions, including regulatory review. As an equity partner, Disney will have three seats on the Hulu Board that will be held by Mr. Iger; Anne Sweeney, co-chair, Disney Media Networks and president, Disney/ABC Television Group; and Kevin Mayer, executive vice president, Corporate Strategy, Business Development & Technology. All other current directors from News Corp, NBC Universal and Providence will remain on the Hulu board.

BoomTown posted from various spots in Europe this week, yet managed to follow the geek-tastic goodness of Silicon Valley’s own contender, Apple (AAPL) co-founder Steve Wozniak, who competed while injured this week on “Dancing With the Stars”–and escaped elimination via the love of viewers in Silicon Valley and elsewhere. Another founder made the headlines this week–BoomTown noted that Steve Case appeared at a huge pep rally at Time Warner’s (TWX) AOL. Case and former AOL exec Ted Leonsis gave their support (and a lucky green tie) to new CEO Tim Armstrong. Elsewhere, Pure Digital, the maker of BoomTown’s favorite gadget–the ever-present Flip digital video camera–sold itself to Cisco (CSCO) for $590 million in stock, and BoomTown urged Silicon Valley to remember it’s not immune to the recession, to put its nose to the grindstone and to avoid party-hearty inanity.

Guess no one’s taking heed of the warning, though: MediaMemo reports that no one’s getting anything done at work–CBS (CBS) says its March Madness Web traffic is up 57 percent compared to last year. On top of that, television viewership rose various percentages throughout the week. MM wasn’t watching much basketball this week, though–there was plenty to blog about: The New York Times (NYT) cracked down on unauthorized use of its photos; Discovery Communications (DISCA) announced a patent infringement suit against Amazon and its Kindle Reader; Palm (PALM) delivered dismal third quarter results, putting even greater pressure on the success of the Pre; and in a Q&A with BusinessWeek editor Stephen Adler, Steve Ballmer said he’s open to a phone call from Yahoo (YHOO) CEO Carol Bartz whenever she’s ready to talk. Oh, and in case you were wondering what happened at SXSW, MediaMemo got a Google (GOOG) guy to explain it.

Digital Daily’s March Madness started with a liveblog of Apple’s St. Patrick’s Day press event to unveil version 3.0 of its iPhone OS, a chronicle of the myriad features displayed onstage and a live photoblog to back it up. DD noted that sales of the iPod touch and iPhone have outstripped RIM’s (RIMM) combined BlackBerry sales by a factor of… well, by a LOT. Kind of supports the data that say mobile Web use doubled over the last year. Which is good, because Mac sales were no good in February.

In Personal Technology, Walt Mossberg reviewed the latest release of Microsoft IE8 (MSFT), its most comprehensive release in many years. His verdict? Mixed, of course. In Mossberg’s Mailbox, Walt talked to readers about the many models of BlackBerry phones and how they differ from one another, the new iPod shuffle and its earphone compatibility and upgrading Vista to Windows 7. In the Mossberg Solution, Katie Boehret reviewed the Ee Top, Asus’s first foray into the all-in-one PC market.

More next week. Go Woz!

This weekend, AllThingsD.com is distributing awards for Best Performance in a ToS Slapdown, Fastest Disappearing Subscriber Base, and Best Conference to Attend in February If It’s Cold Where You Live. If all involved keep their remarks on topic, things should move along quickly.

BoomTown followed this week’s Facebook drama from the first rumblings of dissatisfaction (and jaded irony) with the copyright changes in the social network’s Terms of Service on through to full-on rallying cries by the likes of Perez Hilton for mass desertion. The drama ended–for now–with CEO Mark Zuckerberg’s public apology and rollback of the changes. If you don’t speak Facebook, you’ll be relieved to know that BoomTown has provided a handy translation. Also, Yahoo (YHOO) CEO “Hurricane Carol” Bartz found an appreciative audience in BoomTown for her Friday Memos, which discuss topics as closely related as the company’s maybe-impending reorg and Saturday night chick flicks.

MediaMemo noted this week that on the Web, the New York Times really is the paper of record, as it beats the online reach of its print counterparts almost as handily as Gawker Media beats the reach of the Los Angeles Times. And Comcast (CMCSA) is feeling the subscriber pinch–it lost more on the basic end and added fewer on the high-end than analysts expected, which is especially bad news during hard times, when people traditionally cling to their cable as they might cling to a security blanket. Elsewhere in the content wars, Hulu was at the center of some interesting questions: Was the content provider forced off of Boxee by the big cable companies? Why did it disappear from CBS’s (CBS) TV.com? And maybe most interestingly, how can the cable guys build their own Hulus?

Digital Daily reported that Sprint’s (S) subscriber base is shrinking too, though CEO Dan Hesse is optimistic about the future, which includes the debut of Palm’s (PALM) new Pre handset. The company is “bullish” about its potential. Google’s (GOOG) adventures in Italy took an interesting turn this week, wrote Digital Daily. The family pressing charges against four of its executives–in reaction to a video in which classmates taunt their son, who has Down Syndrome–decided to drop them. The court, however, is allowing the case to proceed without the family’s involvement. And U2 learned the hard way this week that all it takes is one leaked digital copy of an album–in this case, their latest effort, “No Line on the Horizon”–to facilitate the distribution of millions of unauthorized copies.

In Personal Tech, Walt Mossberg test-drove Unigo, a new site aimed at providing first-hand info on colleges to students (and parents) during what can be a truly stressful time. In Mossberg’s Mailbox, Walt offered advice on working with Microsoft Publisher documents on a Mac, improving searches with Surf Canyon (even the beta version) and using a smartphone as a modem. In the Mossberg Solution, Katie Boehret took a look at Trulia.com, which aims to offer an insider’s view of real estate, and in a special MossBlog, Walt and Katie reported from the World Mobile Congress in Barcelona–not a bad place to go in February, especially from Washington, D.C.

More next week.

• Meanwhile … YouTube, through a new deal with CBS (CBS), added “MacGyver” and “Star Trek” re-runs to site classics like “Cat Falls in Toilet” and “Laughing Baby.”
• EBay (EBAY) updated it’s guidance to better reflect “current business trends,” i.e., lousy ones.
• With rumors of December layoffs in the wind, shares of Yahoo (YHOO) slipped into the mud, but recovered slightly thanks to some off-the-cuff remarks by Microsoft (MSFT) CEO Steve Ballmer.
• Walt reviewed T-Mobile’s (DT) G1, the first cellphone based on Google’s Android OS, and concluded it’s a good first effort, but has some downsides.
• And, finally, Google (GOOG) reported third-quarter earnings that beat expectations, proving it’s doing relatively well in the current economic downturn. So far.

To repeat: 200 million. Not bad, considering that Apple tossed NBC’s fall TV lineup off iTunes last year. And sales are certain to grow, now that all four of the major TV networks–ABC, CBS, Fox and NBC–are offering HD versions of its programs through iTunes. Which means Apple is well-positioned to take advantage of an online video market that In-Stat expects to hit $4.5 billion in sales by 2012.

For YouTube, which has been struggling to monetize the 330 million visitors coming its way each month, this may be the beginning of the business model that has so far eluded it. That said, the company is going to have to offer those visitors a bit more than grainy “MacGyver” reruns if it hopes to prevent them from turning to Hulu for premium long-form video content.

Now, Disney (DIS) and CBS (CBS) already offer those same shows for viewing on the same day-after-original air date schedule on their own Web sites (though they aren’t presented commercial-free as they will be on Netflix). But that doesn’t seem to matter to Netflix (NFLX), which is clearly positioning itself as a one-stop shop for online delivery of movies and television shows.

And doing quite well at it, I might add. Wedbush Morgan Securities analyst Michael Pachter estimates that between 10 and 20 percent of Netflix’s 8.4 million subscribers use the company’s streaming service regularly.

Seems the personal data of Googlers hired prior to 2006 were stolen during a May 26 burglary at Colt Express Outsourcing Services, a financially troubled human resources outfit Google (GOOG) once used to administer employee benefits. The data, which astonishingly were not encrypted, thankfully did not include driver’s license, credit card or bank account numbers. It did, however, include employee names, Social Security numbers, birthdates, and addresses–everything an identity thief would need to open a credit card account under another’s name.

It’s unclear how many Googlers are affected by the breach, but it could be quite a few. CBS’s (CBS) CNET Networks was also affected by the burglary, with details from about 6,500 employees stolen.

“We take the security of our employees very seriously and require outside vendors to meet appropriate security standards. We review and update these standards on an ongoing basis,” a Google representative said. “Google is not currently using Colt’s services and had made this decision long before this incident.”

If that’s the case, what was Colt doing with that data in the first place?

During her keynote at the Advertising 2.0 conference in New York today, Yahoo President Sue Decker (pictured above with Jerry Yang) announced the company’s latest online advertising initiatives, among them a multiyear video and display ad deal with Walmart.com (WMT), a global partnership with interactive agency Havas Digital (which will be an early adopter of the company’s AMP platform), an agreement with CBS (CBS) that will see the network’s programming added to the Yahoo TV lineup, and a new newspaper marketing program called Yahoo Circular, which allows retailers to deliver “personalized” newspaper circulars to Yahoo users.

Amazing how the fear of a hostile takeover can motivate a company, isn’t it?

Notably absent from this smorgasbord of partnerships: a deal with Microsoft, which these days seems the only thing that will appease the company’s irate shareholders. That said, such a deal could still be in the works. During an appearance on CNBC’s “Power Lunch” today, Decker said Yahoo remains “engaged” in “ongoing” discussions with Microsoft. “What I said today, I think is pretty consistent with what [Microsoft CEO] Steve Ballmer said last week at the D Conference … which is that Microsoft has indicated that it’s in discussions with us about various partnerships,” she explained. “I can’t comment on the specifics of any kind of discussions.”

The leadership of CNET Networks Inc. (“CNET” or the “Company”) has presided over massive value destruction, with CNET’s shares declining (21)%, (52)% and (25)% in the one, two and three year periods ended March 28, 2008, respectively, compared to (1)%, 6% and 39% returns, respectively, for its stated benchmark peer index. CNET has also consistently underperformed numerous peers in profitability and growth, ranking last among these peers in key metrics, as set forth herein. This underperformance comes despite CNET’s premiere assets, including the tenth largest collection of Internet sites in the world and strong brands and content.”

–Jana Partners, CNET: Value-Unlocking Change for All Shareholders

“The Stars’ Address is CBS.” And now it is CNET Networks’ (CNET) as well. CBS this morning said it agreed to buy the Internet news and entertainment laggard for $1.8 billion in cash. The deal values CNET at about $11.50 per share–a 44.6% premium to yesterday’s closing price of $7.95. That’s $.50 more than the $11 Jana Partners, the investment management firm plotting a proxy fight for control of the company’s board, had hoped to squeeze out of CNET, so presumably even dissident investors are glad to see CBS (CBS) stepping in here.

The deal, expected to close in the third quarter, will vault CBS into the top 10 Internet companies in the United States, with a combined 54 million unique visitors monthly, and about 200 million visitors worldwide. CBS CEO Les Moonves says he expects interactive revenues to hit $1 billion by 2010. “I think the ability of this company to grow together with us just made sense for right now,” Moonves told paidContent. “We’ve stated our goals are to expand in three areas: content, Internet and outdoor. This accomplished two of the three.”