negotiations
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iTunes Match not coming to the UK until 2012?
Music collectors in the US will be able to subscribe to Apple's iTunes Match service this fall, but it looks like our friends across the pond will have to wait a little longer before lofting their libraries up to the cloud. According to sources within the British recording industry, licensing negotiations between Apple and the country's major labels have only just begun and likely won't be concluded until 2012. A spokesman for the Performing Right Society, an organization that protects the rights of musicians and songwriters, likened the situation to the launch of iTunes, which only spread to international markets some 14 months after launching in the US. Speaking to the Telegraph, Forrester Research vice president Mark Mulligan echoed these predictions, while offering some insight into the industry's approach: "Apple's cloud music service will not launch in the UK until at least quarter one of 2012. These types of negotiations take a long time... For one thing the UK arms of all the major record labels are biding their time and waiting to see how the service affects download sales in the US before they sign up to anything." Neither Apple nor any of the major labels have commented on the negotiations, but if things drag on we'd be willing to share our cloudy iTunes in exchange for a crack at Spotify.
Eldar Murtazin: Microsoft will enter negotiations to buy Nokia's mobile division next week
Yes, this is a rumor, and by golly it strains the limits of credulity, but take note of its source. Firstly, the details: according to Eldar Murtazin, Microsoft and Nokia will enter talks next week to discuss the potential for the American software giant to purchase the Finnish company's mobile arm, meaning the part that makes all those delectable smartphones. Eldar's not been able to dig up any further intel, but expects a deal could be closed as early as the end of this year. We're inclined to believe there's at least some semblance of truth to Eldar's words because of his track record. Way back in December of last year, when nobody believed Nokia would deviate from its Symbian strategy, Eldar reported the similarly incredible-sounding news that Microsoft and Nokia were in discussions about the latter using Windows Phone as its main smartphone OS. That turned into reality this February, and more recently, the Russian mobile spy managed to also accurately predict Nokia killing off the Ovi brand in favor of an eponymous naming scheme for its services. And that's all on top of Eldar's knack for obtaining Nokia prototypes way ahead of release. So, assuming for a moment that Microsoft does indeed have its eyes set on turning Nokia's handset business into its own mobile hardware division, what would it all mean? Well, we can only see this making sense for Espoo if underwritten by a humongous check from Microsoft, but that might not be a problem. The Redmond camp has recently shown its determination to get what it wants by spending $8.5 billion on Skype, and previously offered north of $44 billion for Yahoo, a good deal more than Nokia's total market cap of around $32 billion. Let's not forget, Nokia once used to manufacture galoshes and tires, so it already has a history of transformative change. And hey, having an ex-Microsoft guy at the top means that if this kind of move were to ever happen, now might just be the right time for it. Update: As Reonhato pointed out in comments, Mark Squires, UK Communications Director for Nokia, has already issued an uncharacteristically pointed non-comment. "We typically don't comment on rumors. But we have to say that Eldar's rumors are getting obviously less accurate with every passing moment."
What stalled negotiations between Google and the music industry? (Hint: money)
It's no secret that negotiations between Google and the recording industry haven't been going very well. Perhaps even less surprising are the reasons behind the stalemate. According to the Hollywood Reporter, discussions between the two parties have sputtered thanks to three usual suspects: money, file-sharing and concerns over competition. During licensing talks, Google agreed to pay upfront advances to all participating labels, but the major players wanted bigger guarantees. That prompted the indie contingent to ask for similar money, unleashing a snowball of stakes-raising. The two sides also failed to agree on how to handle pirated music, with the industry demanding that Google not only ban illegally downloaded files from users' lockers, but that it erase P2P sites from its search results, as well. Hovering above all this bargaining was a thick cloud of destabilizing uncertainty. Some execs welcomed the idea of a new iTunes competitor, while others were less enthusiastic, amid concerns that Google Music wouldn't deliver new revenue streams. The ultimate question, of course, is how negotiations will proceed now that Google's already launched the service. The labels were warned that Tuesday's I/O announcement was coming, but the search giant didn't do much to mend fences when it effectively blamed the record execs for holding up negotiations. It's hard to say whether Google's bravado will help or hurt matters, but according to a source from a major label, "People are pissed."
Apple could agree to component price hike to secure touchscreens
Contending with seemingly insatiable demand for its new iPad 2, Apple is pondering paying higher prices for touch panel components, according to a report from DigiTimes on Wednesday. Manufacturers in Taiwan claim Apple is more open to certain price hikes during negotiations as the California company tries to secure a sufficient supply of components for its popular touchscreen products. Higher component prices, in the short term, will shrink Apple's gross margins on three of its hottest selling products: the iPad, iPhone and iPod touch. But securing adequate availability of touch panels should help the company relieve some of the constraints in its global supply chain. Such a deal would also put pressure on other consumer electronics companies to pay more for the components they need to build competing tablet computers and smartphones. Apple currently faces incredible pressure from consumers and shareholders to address bottlenecks in the supply chain for its successful families of touch panel devices. Lead times for the new iPad 2 ballooned to 4–5 weeks in its first few days on the US market, and the tablet goes on sale to a broader, global market this Friday. Apple reportedly expects to ship 40 million iPads in 2011. The company is also expected to launch its next generation iPhone later this year. The earthquake and tsunami that struck Japan earlier this month further fueled concerns over possible touch panel supply shortages. According to AppleInsider, a recent report suggested Foxconn, Apple's manufacturing partner, has only two or three weeks' worth of touch panels stockpiled. If the situation in Japan doesn't improve, Foxconn could deplete its stock of touch panel components. Despite these concerns, DigiTimes believes Apple is well positioned to weather a shortage of touch panels. Apple has already booked an estimated 60 percent of the world's touch panel output capacity. As the global market leader in touchscreen devices, Apple will continue to control the lion's share of the world's touch panel supply and enjoy lower component pricing than its competition. "Supply for touch panel[s]...will be more smooth for Apple," concluded DigiTimes. [via AppleInsider]
WSJ: Apple still 'racing' to complete iPad content deals before launch
The iPad launch may finally be right around the corner, but it looks like Apple might still have some considerable work cut out for itself before the big day. According to The Wall Street Journal, Apple is still negotiating with various media companies in an effort to drop the price on TV shows offered on the device, and it's even reportedly put some potential deals with newspaper, magazine and textbook publishers on the backburner as it focuses on other content. That word comes from the usual, unnamed "people with the matter," who go on to say that it's proven to be difficult to convince potential content partners of the advantages of working with Apple on the iPad versus the possible threats to their current sources of revenue. It's hardly all bad news for the magical device though, as some other people familiar with the matter say that Apple has already sold "hundreds of thousands" of iPads. For its part, Apple is naturally staying mum on both counts.
Google says Android should 'flourish' in China, effectively concedes a point
Whether for real or for show, Google tried to make the world believe it would use Android OS as a bargaining chip during the company's terse, slow negotiations with China. Now, the company has seemingly abandoned that option. During an educational webcast about the future of Google's mobile business, CFO Patrick Pichette told viewers that he expected the company's Android platform to do well in China despite all the recent threats and ultimatums in the country. "The Android platform is available to everybody," said Pichette, "and China is obviously another great market in which Android should flourish." Good to hear that Google and China are finally in accordance, right? Thing is, with China circumventing Android's default search engine, Google's stance against Chinese censorship of search depended on taking Android handsets hostage. But if the OS is indeed available to everybody, that's not going to happen. The mobile market might one day be dominated by Android, but if Google doesn't step up, mobile search will go to competitors more willing to play wallball with the Great Firewall of China.
Google to stop censoring Chinese search results 'soon,' China warns of consequences
According to the Wall Street Journal, Google is making headway with its plans to stop filtering search results in China. Quoting Eric Schmidt as saying that "something will happen soon," the latest report is that Google is engaged in negotiations with multiple government agencies in China, and the likeliest scenario at this point is that the search giant will remain in the People's Republic, though it may be in a slightly altered state. "There will be a way for Google to not pull out 100%," says a source familiar with the ongoing discussions, who expects that El Goog will find a patchwork arrangement by which it'll be able to maintain some parts of its business running while no longer adhering to China's censorship fiat. For its part, China is keeping up its tough posturing, with the latest statement from its IT ministry describing Google's plans as "unfriendly and irresponsible" and warning that the company will have to bear the consequences of its actions. What appears certain at this point, however, is that there'll be no going back to censored Google search results, which is a win in our books whatever the final outcome.
Food Network, HGTV are back on Cablevision
It took three weeks, but Scripps & Cablevision have settled their differences, allowing Food Network and HGTV to return to New York area cable customers this afternoon. Both sides had plenty of tough talk New Year's Day when the channels disappeared, but all that's faded into the general "we're glad to be back on" PR-speak. Terms of the agreement weren't disclosed but we hear Bobby Flay and Guy Fieri will be suiting up for the Knicks tonight, which could explain the lengthy negotiations.
It's 2010 - Fox is still on TWC (for now) but Food & HGTV are off Cablevision
As two digits flipped over last night we waited to see if Fox and Time Warner Cable would work out their differences or turn channels dark.... and waited... and waited until we finally dozed off. As it stands, thanks to a series of extensions and ongoing negotiations, the channels are still on, but there's no new deal. As long as that remains to be the case, many football fans and several members of the government should be quite pleased, but in a New Year's Day surprise, Cablevision has rid itself of two networks on its service - Food Network and HGTV. While we've been upset by reports of some odd aspect ratio stretching on HGTV, these channels have their own fans that are upset to see them missing. Cablevision's posture seems to be that they won't be coming back, but parent company Scripps has already launched campaigns at ILoveHGTV.com and ILoveFoodNetwork.com for viewers to appeal for their return. We'll keep an eye on the ongoing Fox/TWC spat, though we're sure they wouldn't suddenly let channels go dark right before the Sugar Bowl tonight, would they?
Apple to pay higher wholesale movie price reports Ars
Over at infinite Loop, Former TUAW heavyweight David Chartier posts that Apple will soon be paying a $15 per movie wholesale price to the movie studios. David sees this as Apple caving into Hollywood after a tense face-off. Me? I see this another way. I don't believe the movie sales over at the iTunes store have been all that hugely successful. With competition from Walmart and weak consumer interest, I think Apple is changing its direction. Instead of movie sales, I'm thinking movie rentals. We've seen evidence for this both on the Mac in the iTunes binary (thanks Evan DiBiase) and on the iPhone (thanks Pumpkin). Rentals could do a lot for Apple's bottom line. It would re-energize the lagging Apple TV as a platform, it would expand the iPhone's reach as a portable media device, especially for travelers, and it would basically give up on iTunes-distributed buy-to-own movies as an unprofitable but fully explored avenue. So what do you think? Evil MPAA? Weak Apple? Or a new paradigm on the horizon?
