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CE Oh no he didn't!: Time Warner chief likens Netflix threat to Albanian army
Think the relationship between Netflix and cable and content executives is amicable? Not. Even. Close. Certainly not after Netflix CEO Reed Hastings blazed a trail into the living room on the strength of the company's streaming television and movie content originally made possible by a shrewd 2008 deal with Starz. A move that netted streaming access rights to Sony and Disney content for an estimated $25 million -- next to nothing compared to the traditional licensing fees charged to cable operators. That deal is set to expire in 2011 and could cost Netflix as much as $250 million a year to renew. Time Warner CEO Jeff Bewkes thinks that Netflix's days at the top are numbered having been made possible by an era of experimentation that's now ending. "It's a little bit like, is the Albanian army going to take over the world?" said Bewkes, "I don't think so." According to the New York Times, the comments were made last week as UBS sponsored a media conference in New York that it says turned into a "platform for executives to express their grievances and emphasize that they will now aggressively try to tilt the economic balance between Netflix and content creators back toward the media conglomerates." Wow. Don't worry though Netflix subscribers, we're sure that the implied collusion is the good kind.
CE-Oh no he didn't! Part LXI: Acer chief says Japanese PC companies "the weakest today"
We're pretty sure we've heard Acer CEO Gianfranco Lanci say PC industry consolidation resulting in fewer players and lower component prices would be a good thing before, but he dressed it with a side of smackdown today: speaking to the New York Times, he said that Toshiba and Sony's PC businesses would be the first targets, since "the Japanese for sure are the weakest today." Ouch. It's especially harsh since Sony just broke down and released its first netbook this morning after claiming that the low-cost machines were a downward spiral, but that wasn't enough blood for Gianfranco: he also said that ASUS and Lenovo need to "think long and hard" about remaining independent companies. Yow -- sounds like someone's planning to do a little shopping, don't you think?
CE-Oh no he didn't! Part LX: NVIDIA calls Intel's single-chip Atom pricing "pretty unfair"
Now that Intel's been slapped with a record $1.45b antitrust fine in Europe, it seems like the claws are coming out -- AMD just put up that "Break Free" site, and today we've got NVIDIA CEO Jen-Hsun Huang calling Chipzilla's Atom pricing "unfair." It seems that Intel sells the standard Atom chip for $45 on its own, but bundles the diminutive CPU into the oh-so-familiar netbook configuration for just $25, meaning NVIDIA's Ion chipset isn't price-competitive. Of course, this is just another twist in the endless argument about Ion, but despite the denials, this isn't the first time we've heard whispers that Intel pretty much forces manufacturers to buy complete Atom chipsets -- the dearth of Ion-powered netbooks in the market is fairly suspicious considering the GeForce 9400M at the heart of the platform is a well-known quantity. On the other hand, we've also heard this is all going to change and change dramatically at Computex next month, so we'll see -- either way, things are bound to get interesting.[Via TrustedReviews]
CE-Oh no he didn't! Part LVII: Howard Stringer says the Wii is not 'a competitor'
Further confirming his utter disconnect from reality, Sony head Howard Stringer referred to Nintendo's market-dominating Wii as an "expensive niche game device." Previous to making that statement, Stringer bafflingly said, "I've played a Nintendo Wii, I don't see it as a competitor." Now look -- we're not saying you're in some kind of CEO super-denial, but all signs point to the possibility that you should probably consider the Wii a competitor (since it is... well... a competing system and platform), and perhaps recognize that "niche" is typically not synonymous with "best selling." Of course, you're the guy running Sony, we're just watching the crackup from the sidelines.[Via Nintendo Wii Fanboy]
CE-Oh no he didn't! Part XLVIII: Mandriva CEO slams Ballmer in blog rant
Microsoft's Steve Ballmer is certainly no stranger to our CE-Oh no he didn't! series, but Mandriva's CEO François Bancilhon now looks to have turned the tables, with him targeting Ballmer in an open letter on his blog. Causing all his ire is a recent deal Mandriva made to install its Linux distribution onto 17,000 Classmate PCs sold to the Nigerian Government, which Nigeria says they will follow through on, only to replace the OS with Windows afterwards. Bancilhon, as you might have guessed, is laying the blame for the sudden change of heart squarely on Microsoft, and Ballmer specifically, saying "Wow! I'm impressed, Steve! What have you done for these guys to change their mind like this? It's pretty clear to me, and it will be clear to everyone." Bancilhon went on to ask, "How do you call what you just did Steve, in the place where you live?," adding that, "In my place, they give it various names, I'm sure you know them." Bancilhon then busted out the ever-reliable "how do you feel looking at yourself in the mirror in the morning?" line, before closing things off by saying, "You have the money, the power, and maybe we have a different sense of ethics you and I, but I believe that hard work, good technology and ethics can win too."[Via Yahoo News/PC Magazine]
CE-Oh no he didn't! Part XLVI: Ballmer still wants compensation from Red Hat users
If you'll recall, it was around this time last year when ole Steve Ballmer fessed up and stated that Linux users probably owed him a nickle or two, and apparently, he's yet to get over it. Reportedly, Mr. Ballmer was speaking out last week "at a company event in London discussing online services in the UK" when he proclaimed that "people who use Red Hat, at least with respect to our intellectual property, in a sense have an obligation to compensate us." Furthermore, he went on to "praise Novell for valuing intellectual property, and suggested that open source vendors will be forced to strike similar deals with other patent holders." Of course, we're sure he means well and all, given that all he "really" wants is "an intellectual property interoperability framework between the two worlds." And a few dollars too, right?[Via TheInquirer]
CE-Oh no he didn't! Part XLVI: Skype's former CEO admits eBay paid too much
Apparently former Skype CEO and co-founder Niklas Zennstrom isn't just one to take the money and run. No, he found time in his busy schedule to confess that eBay paid too much for Skype, which is something that's become increasingly evident to eBay in the past months: the company is cutting up to $1.2 billion off the $4.3 billion potential price it agreed to with Skype two years ago. "We had to chart the trajectory of growth and how fast that would run, (but) we found out that was a bit front-loaded," said Zennstrom. "We overshot in terms of monetization ... Our position in the market has strengthened ... you need to look at the long-term value of companies." Seems a little odd for Niklas to be preaching it to eBay in this scenario, but perhaps he just wanted to clear his name now that Joost has gone public and is potentially looking of suitors. He wouldn't predict if Skype could've made its original goals if he had stuck around until 2009, but somehow we doubt it.
CE-Oh no he didn't! Part XLV: Amiga head says new AmigaOS 5 "better than OS X"
Sure, we know you and your Video Toaster have been gutted over this whole AmigaOS 4 debacle... what's that? You've never heard of OS 4? You didn't know Amiga was still around? You hadn't heard that Bill McEwan, CEO of Amiga says the company's next OS is going to be "better than OS X?" Well time to perk up those ears, kiddo. In a truly enthralling read, the head of the defunct hardware-maker / software company says that Amiga is hard at work on a number of projects, not the least of which is the follow up to company's OS 4 -- which has been mired in development disputes with a company called Hyperion Entertainment since 2001 -- AmigaOS 5. A piece of software guaranteed to surprise and thrill the technology community at large, mostly (we suspect) due to the fact that no one even knew the company was still in business. Sure, some of the detractors say they haven't released a product in seven years, but what's seven years when you've got that pile of platinum that is OS 5? Exactly.[Via Slashdot]
CE-Oh no he didn't! Part XLIV: Ballmer calls Ellison overpaid, kettle black
As soon as the salary of a CEO reaches the $1 million a year mark, they should probably hush up about their peer's ridiculously inflated $74 million ones. Apply those numbers to Steve Ballmer and Larry Ellison respectively, and now consider that Ballmer is complaining about the latter's yearly figure. According to Forbes, Ellison has consistently hit the top ten of CEO compensation list, and is unarguably the most well paid CEO of a technology company, but does that give Ballmer any right to call him out on it? We're thinking maybe Ballmer should take stock -- of which he has 9.6% of Microsoft's total by the way -- and continue to count up his $15 Billion fortune. Sure, over-compensation of CEOs is a problem, but one that probably shouldn't be outed by a well-compensated CEO that earns double-digit multiples over the average Microsoft salary.
CE-Oh no he didn't! Part XLIII: Vivendi CEO calls iTunes contract "indecent"
While it's a bit tame compared to some of the CEO outbursts we've seen, Vivendi Chairman Jean-Bernard Levy's reported description of Apple's iTunes contract terms as "indecent" should still be more than enough raise a few eyebrows. More specifically, referring to the contract terms between Vivendi's Universal Music Group unit and Apple, Levy said that the "split between Apple and (music) producers is indecent," adding that its "contracts give too good a share to Apple." To remedy that supposed indecency, Levy suggested a "differentiated price system" for older and newer releases, among other things. Of course, all of this follows a fair bit of back and forth between the two companies, which ultimately ended up with Universal not renewing its long-term contract with Apple, but continuing to work with iTunes "at will." According to Reuters, Levy wouldn't comment about the possibility of Universal leaving iTunes altogether, although he did confirm that "we are not just talking to Apple."
CE-Oh no he didn't! Part XL: AT&T CEO says no one wants $10 DSL
AT&T CEO Randall Stephenson apparently subscribes to a different school of marketing and demand than most others -- speaking with the Atlanta Journal-Constitution, the telecom boss flatly denied that AT&T's $10 DSL plan is hidden on the company's website, and went on to say that "customers haven't been clamoring for it," and that since the 768Kbps "user experience is not what I would consider really state of the art," he doesn't really want to sell it to anyone. Of course, customers don't usually clamor for a product that barely anyone knows is available and that requires absurd hoop-jumping just to get set up, but don't let them pesky facts get in your way, Randy.[Via Techdirt]
CE-Oh no he didn't! Part XL: Acer's Gianfranco Lanci says "entire industry" disappointed by Vista
Acer President Gianfranco Lanci doesn't look to have minced any words about his thoughts on Vista during a recent interview with the Financial Times Deutschland, reportedly telling the publication that "the entire industry is disappointed by Windows Vista." As if that wasn't a big enough shot across the bow, Lanci further went on to say that it's "not going to change in the second half of this year," adding that "I really don't think that someone has bought a new PC specifically for Vista." Lanci apparently didn't have quite everything out of his system just yet though, also lambasting Vista for not being ready when it was released, saying that "stability is certainly a problem." We some suspect he won't be too pleased with Microsoft's recent pronouncements on the matter either.
CE-Oh no he didn't, part XXXVIII: Peter Moore tells Sony it's failing
While Peter Moore wasn't exactly this forthright when chatting it up with us, it's not totally out of character for execs to lash out at rivals from time to time. In the latest chapter of CE-Oh no he didn't, we find Mr. Moore claiming that Sony's "long-term business plan of being successful in Japan is crumbling." Moreover, he continued to knock the PS3 by sidestepping questions of why the Xbox 360 has sold so miserably in the Land of the Rising Sun and suggested that Sony was the one that should be worried about "getting outsold six-to-one." As a finisher, Peter added that he had "built a business plan for Japan," and while sales have indeed been lackluster, he claimed that "Sony was missing its plan by much more" than he was missing his. Seriously, them's fightin' words there.[Via DailyTech]
CE-Oh no he didn't, part XXXVII: Sony's Reeves says PS3 will be "the winner" by March 08
Sony Computer Entertainment Europe president David Reeves already caused quite a stir with his statement that the 60GB PS3 would soon be no more, and it looks like he's now set to kick up another hubbub, telling GamesIndustry.biz that he expects the PS3 to be "the winner" by March of next year. As if that wasn't a bold enough proclamation, he said that the PS3 "will be far and away the winner when you look at it by March '08," adding that "it's something that is going to be a slow burner, and suddenly it's like a tsunami; it will just overtake you." Let's just hope that tsunami comes at a discount.
CE-Oh no he didn't, part XXXV: NBC sez piracy hurts 'corn growers'
Although some may argue that piracy is (at least on some level) beneficial, it looks like NBC has taken that sentiment to the opposing extreme with its latest comments. In a purported filing with the FCC calling for enhanced regulation of the internet in an attempt to stifle evil P2P activity, NBC blurted out a string of text that it surely hoped would be overlooked. Alas, hardly any ridiculous claims go unseen these days, so now we're faced with this gem: "In the absence of movie piracy, video retailers would sell and rent more titles. Movie theaters would sell more tickets and popcorn. Corn growers would earn greater profits and buy more farm equipment." There's absolutely no need for us to pick apart the aforementioned quote, after all, we're fairly certain the absurdity shines right through on its own.[Via TechDirt, image courtesy of Monsanto]
Ce-Oh no he didn't, part XXXIV: Karmazin sez "we suck less" than XM
We guess that once your acquisition target has agreed to be purchased, you don't really have to go around buttering up its board members or executives anymore, but it still seems odd that CEO Mel Karmazin would defend Sirius' admittedly poor performance on Wall Street by arguing that at least his company "sucks less" than future partner XM. Yet that's exactly the case presented to shareholders at a Manhattan meeting last week, where the often-outspoken Karmazin admitted that he was "real unhappy" with the satrad firm's stock price -- although compared to the 61% decline in XM share prices since September 2004, Sirius' 8% gain over that same period was a relative bull run. Still, Mel, don't you think there are better ways to phrase that sentiment other than attaching the connotation of "suckiness" to your company and one you hope to acquire? Hey, just a thought. [Via FARK]
Ce-Oh no he didn't, part XXXIII - Microsoft's just waiting for Wii fanboys to grow up
Never let it be said that a console war doesn't benefit the consumer -- for the goldmine of quotes, if nothing else. This latest one is from John Rodman, group product manager for the Xbox platform and Xbox Live, who was talking up the Xbox 360 in a New York Times article of all places. "We don't feel like the Wii customer and the Xbox customer are the same thing," he said. "We think that as soon as the Wii customer turns 14 they want something else." Oh snap! Finally the truth comes out. We were getting a bit tired of all those backhanded praises Sony and Microsoft have been showering on the Wii, since it's not the "competition." Seems like it's worth Rodman's time to pay it such a diss (not that we have anything against sub-14 year olds, but let's be honest here) and there's no doubt the Wii is more of a threat to Sony and Microsoft than they'll ever admit.[Thanks, David B]
Ce-Oh no he didn't, part XXXII - Sony UK boss calls US citizens "cheap people"
In an interview with GamesIndustry, Sony UK's managing director Ray Maguire had something of a minor faux pas when asked why the PS3 is pricier in the UK (£425 or $833 US) than it is in the rest of Europe (€599 or $794 US), to which he replied:"... you have a look at the economic and financial situation in each and every territory. That's where the differences start to vary massively. ... If you take what's considered to be the most expensive and the least expensive – consider the US with its massive land and cheap people."We think we're gonna give Ray a pass here. If you read his whole interview, in context he seems to be talking about costs -- like tarriffs, fees, VAT, and the like -- associated with getting a console into a person's hands. But either way, people are people, and it's no surprise that when you start thinking of human beings as numbers or business units you start saying stupid things like the US is filled with "cheap people".
CE-Oh no he didn't! Part XXIX - Apple sez free phones are worthless
Sure, Apple and Cisco have been exchanging kind (and not so kind) words of late, but a loose-tongued COO gave us just tidbit we needed to satisfactorily craft the 29th running of CE-Oh No He Didn't. It's no secret that Apple stands to profit mightily off its eventual iPhone sales, and it's also not too far fetched to start dreaming of 3G on the imminent next revision, but laying the smack down on free cellphones in order to bolster your own product is just asking for it. Sure enough, Apple's Chief Operating Officer Timothy Cook said yesterday at a conference in Las Vegas that "A lot of people pay zero for the cellphone," but rather than contemplating his next move, he carelessly blurted out the reason by stating "That's what it's worth," essentially punking users of the ever-basic free cellphone that saw no reason to spring for high-end hardware when initializing their contract. Apple is currently predicting that "around 10 million customers will pay at least $499 to buy an iPhone" because they feel the value is there, but apparently a low-end mobile isn't worth its weight in plastic. C'mon Mr. Cook, we've got no qualms with pricing your mobile as your company deems fit, but slamming the hammer on folks who just need a handset that calls Aunt Susie every now and then is just a bit harsh, no?[Via Digg]
CE-Oh no he didn't! Part XXVIII - Reggie pokes fun at PS3 shootings
Apparently Perrin Kaplan isn't the only spokesperson for Nintendo speaking a bit too "freely" these days. The man himself, Reggie Fils-Aime, when queried about the PS3 launch lines in an interview with GameHead, asked, "Were those the people ducking to not get shot?" What a comedian! This was following a staunch denial of the PS3 having any lines at E3, which isn't quite accurate -- the lines were just short and more of a per-console thing, since there wasn't the crazy kind of closed room setup at the Sony booth. Maybe he should spend a bit less time honing those witty barbs and more time figuring out a way to get some more of his own console onto store shelves -- before the Wii related violence starts to get out of hand.[Via Joystiq]
