Wednesday, January 13, 2010
Econalypse Fin
“The technology downturn of 2008 and 2009 is unofficially over.”
This, according to Forrester, which claims technology spending will roar back to life in 2010.
“The technology downturn of 2008 and 2009 is unofficially over.”
This, according to Forrester, which claims technology spending will roar back to life in 2010.
The digital video revolution may be hastening the DVD toward its end, but there’s quite a bit of life left in the old format yet. Netflix CEO Reed Hastings said as much today when he remarked that the company’s DVD-by-mail business will likely continue until 2030. During a wide-ranging on-stage interview with All Things Digital’s Peter Kafka, Hastings discussed the deal Netflix cut with Warner Bros. earlier this week that will delay rentals of the studio’s films until 28 days after their DVD release and Comcast’s proposal to acquire a controlling stake in NBC Universal, a move that could impact Netflix’s Watch Instantly streaming service.
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.
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Earlier today, Kara Swisher reported in BoomTown that RealNetworks would sack four percent of its workforce–70 employees out of its 1,700-person staff. After the jump, the official internal memo from RealNetworks Founder, Chairman and CEO Rob Glaser, breaking the bad news.
Verizon posted a decent third quarter this morning, besting consensus estimates. Analysts polled by Thomson Reuters had been expecting earnings of 59 cents on revenue of $27.17 billion. Excluding one-time costs, Verizon reported a profit of 60 cents a share on revenue of $27.3 billion.
$118.49. That’s the price at which Amazon shares closed Friday, a day after the company reported a 69 percent jump in third-quarter profit and a 28 percent gain in revenue. It was a new 52-week high and the stock’s best since December 1999, when it hit $106.68. Which is saying something. Because as you might recall, in 1999, Nasdaq was soaring on the back of the dot-com bubble to levels never before seen.
The broader advertising recovery may take time, but search advertising is clearly beating a hasty path back toward normalcy. Or it is in Google’s case anyway. Reporting third-quarter results after market close Thursday, the search giant posted revenue of $5.94 billion, an increase of seven percent compared to the third quarter of 2008.
Nintendo President Satoru Iwata likes to say that game console price cuts aren’t the cure-alls many believe them to be. “People often talk about the price cut as if it’s an almighty weapon,” he said this past summer. “The fact of the matter is what a price cut can do is rather limited.” But Nintendo is cutting the price of its Wii videogame system just the same.
Looks like the worst is once again behind us. In remarks at the Intel Developer Forum on Tuesday, Intel CEO Paul Otellini said the PC industry is headed for recovery, albeit slowly.
The videogame industry may be recession-resistant, but it is clearly not recession-proof, as some once claimed.
If it was, surely we wouldn’t be seeing the sixth consecutive month of declining sales reported by NPD. According to the market research firm, overall sales in the United States in August of hardware, software and game accessories were $909 million–a 16 percent drop from the same period a year ago.
According to IDC, the worldwide market for business analytics software will swell to $25 billion this year. Little wonder, then, that IBM is beefing up its presence in that sector with the $1.2 billion acquisition of data analysis software maker SPSS. Business analytics powerhouse SAS best watch its back.
The consolidation of the prepaid cellphone market has begun in earnest. This morning, Sprint Nextel said it will acquire Virgin Mobile USA in a $483 million stock deal that will give the company a clear lead in the prepaid arena, where low prices are becoming ever more popular with consumers beaten into submission by the continuing recession.
The econalypse has done great things for Netflix, sending recession-addled customers running to embrace its way-cheaper-than-cable DVD-by-mail and streaming-movie service. The online DVD-rental pioneer posted earnings that beat Wall Street estimates and announced that its subscriber base has grown to 10.6 million.
John Paczkowski has been poking fun at the tech industry and the personalities that drive it since 1997. From 1999 to 2007, he wrote the award-winning tech news Web log Good Morning Silicon Valley for the San Jose Mercury News, Silicon Valley's daily newspaper. Read more »
Here is a statement of my ethics and coverage policies. It is more than most of you want to know, but, in the age of suspicion of the media, I am laying it all out.
The reindeer had tolerated the cheetah’s posturing — up until today.
From NPR and Chicago Public Radio, this is Wait Wait Don’t Tell Me … We’re going to be cutting our show a little short today, because, as you may have heard, there’s a zombie apocalypse happening!
Who said New York is unfriendly?
”Need a new one?”
Pants on the ground
Pants on the ground
Lookin like a fool with you pants on the ground
Step off Keyboard Cat …
Prerequisites
ENG: 102—Staring Blankly at Handheld Devices While Others Are Talking
ENG: 231WR—Facebook Wall Alliteration and Assonance
LIT: 209—Internet-Age Surrealistic Narcissism and Self-Absorption
Dear Josie,
After repeated instances of vandalism and abuse, I have taken the step of locking the Wikipedia article on our sex life. Although I have previously banned both your user account and your home IP address, malicious edits have continued, both anonymously and from newly registered users “alanequalswanker” and “ooohImabigimportantadmin.”
Droid is a robot and should mostly be handled by other robots. It is packaged inside missiles launched by stealth jets. iPhone records video and seems to have a lot of useful apps.