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Wall Street Journal confirms iTunes TV show rentals [Update: Netflix on Apple TV claimed by BusinessWeek]
TV shows and iTunes go back several years now, to October 2005. If iTunes TV show sales have not been as brisk over those five years as Apple and the studios might have hoped, perhaps a less expensive rental solution might introduce vigor to the TV market. This afternoon, the Wall Street Journal has confirmed with "people familiar with the matter" that Apple is set to announce $0.99 rentals during tomorrow's media event. Rumors of iTunes TV rentals have been widespread over the last month. With Hulu Plus waiting on the sidelines for $10/month (and ads, for that matter) and Netflix hyping digital streaming to mobile devices, it seems like a good time for Apple to dip its toes into new and more flexible revenue streams. While Apple is willing, it seems like the studios had to be convinced. WSJ sources say that studio participation in the rental scheme is contingent on broader Apple participation in digital development deals. I know that I have rarely re-watched any of my iTunes purchases -- and that most of those purchases were based on pre-Hulu availability after my EyeTV system failed to record shows. But with Hulu as a major player these days, not to mention the promise of Hulu Plus's mobile streaming service, and with a growing recession, will consumers be willing to pay extra just to skip ads? Update: Engadget points to the Bloomberg BusinessWeek report claiming Netflix streaming will also be on deck for a revamped Apple TV.
E-readers: they make people read more
There may be a whole lot of nostalgia tied up in the tree-based matter traditionally used to deliver the written word. But lots of new data suggest that once you've made the leap into the digital marketplace, you're going to spend a lot more time -- and money -- on books than you otherwise would. Amazon reports that its customers buy 3.3 times more books after they buy a Kindle. 11 million people will own e-readers by the end of month. E-book sales grew 183% more this year than last. And people seem to be reading in all sorts of new places, just because of the portability the e-readers offer. We know that we've been burying our heads in a lot more literature since we've been able to do it via 1's and 0's, but it's nice to hear that normal people have been reading more as well. [Image credit: LenEdgerly's flickr]
Paul Allen's company sues Apple, Google
Microsoft co-founder Paul Allen has formally sued Apple, Google and several others over the use of technologies for which he holds the patents. The Wall Street Journal was unable to reach any of the parties involved for comment, but notes that Allen has been going after companies, many of them high-profile, that he believes are using software that was developed in his Silicon Valley laboratory several years ago. The suit identifies four specific patents. Each appears to be a huge part of how contemporary e-commerce and Internet search tools work. For example, one addresses how websites suggest products based upon customers' recent searches. Another lets those reading a news story quickly find related stores, while the two others let ads and news items, among other things, flash on a computer screen adjacent to what the user is directly looking at. No specific dollar amount was identified. Allen's spokesman, David Postaman, told the Journal, "Paul thinks this is important, not just to him but to the researchers at Interval who created this technology." Others named in the suit include Ebay, Facebook, Netflix and Aol (Note: TUAW is owned by Aol). We'll keep an eye on this story and post any updates.
More murmuring about 99 cent iTunes TV rentals
Well now. The previous rumor about 99 cent rentals for TV episodes on iTunes was just your average, but now that we know there's an Apple event just around the corner, it's time to start making hay out of all the chaff floating around. A source now tells the Wall Street Journal that Apple is pushing hard for a deal with Disney to nail down cheaper 48-hour rentals, presumably to come through iTunes and the revamped iTV service. Resistance to the deal is coming from TV companies (surprise, surprise), who are leery about putting too much content out through online services, fearing that people will leave their monthly cable bills behind if another service arises. What's funny about that, of course, is that Apple sees that's already happening. Services like Hulu Plus and Netflix are already making cable customers rethink their monthly fees, and so Apple is finding itself with a limited amount of time to get in on the action. The Wall Street Journal says the company is pushing for agreements "before the new television season starts," but now that we know there's an event planned for September 1st, it's more likely Apple is trying to get agreements set up before the announcement. Of course, as Philip Elmer-DeWitt points out, the real economic tradeoff isn't between the $0.99 rentals and a more lucrative plan the studios come up with -- it's between Apple's proven iTunes-based economy and the free-range TV programming on BitTorrent. And with its ties to Disney, odds are that Apple will definitely have enough to go forward, even if it doesn't have every channel signing on the dotted line just yet. So here's the question: if Apple does announce a new iTV, and a way to watch new television on demand right away, will you choose a system like that over whatever cable bill you're currently paying?
The curious idea of ads in iBooks
Don't worry -- you won't start seeing ads for tattoo parlors while reading Girl with the Dragon Tattoo. Not yet, anyway. But there's some interesting thinking going around the 'net (kicked off by this article in the Wall Street Journal) about how advertising may soon try to conquer the last bastion of entertainment: books. When you go to the movies, you see ads, when you watch TV and browse the Internet, there are ads everywhere. But why don't you see ads while reading a book? (I mean, besides the obvious conclusion that it's annoying and invasive?) In the past, it's been because the lead time for books is a wild card. Unlike newspapers and movies, books have a longer shelf life, and different readers could revisit the same material over a period of years rather than days or weeks. You'd have to dynamically deliver ads in some way, and you'd need publishers with know-how and insight about their customers in order to sell relevant ads regularly. In short, you'd need e-books, and you'd need a company (says Snarkmarket) like, say, Apple. Publishers may not have the ability to sell relevant ads to readers, but Apple surely does, especially since it seems to be sweeping up ad sales people as quickly as possible lately. And with prices becoming competitive in the e-book space, there's incentive for both Apple as an iBook publisher and even authors (who want to supplement e-book sale numbers with iAd sales) to bring advertising over to the iBookstore at some point.
WSJ says iPads gaining acceptance in corporations
The past few weeks have been fascinating for Apple watchers. The business press has been reporting that the brand, formerly a pariah in the buttoned-down world of corporate IT, is now being accepted with open arms. We had a story yesterday about the growth of Mac sales in the government and enterprise markets, and now the Wall Street Journal is reporting on how the iPad is finding a home in the business world. In the WSJ Tech piece, reporter Ben Worthen notes how the iPhone was banned by companies when it first came out in 2007 for being inappropriate for the workplace. The iPad, however, has been quickly embraced by companies. One such success story cited in the WSJ piece talks about Chicago-based law firm Sonnenschein Nath & Rosenthal LLP. The company pre-ordered 10 iPads prior to the release of the device in April so that they could learn how iPads could be used with the company's internal systems. The technology department at the firm now supports more than 50 attorneys with iPads, and they plan on issuing iPads as a less-expensive alternative to laptops soon.
Starbucks reveals plans for a Digital Network, made up of 'exclusive and premium' digital content
Free WiFi not enough of an enticement to get you to step into a Starbucks? Don't worry, the ubiquitous frappuccino purveyor has another card up its mocha-stained sleeve. Beginning this fall, Starbucks locations will be enriched with a new Digital Network, a freely accessible portal unto exclusive content from some of the more highbrow providers. The New York Times, Wall Street Journal and USA Today will flesh out the news offering, Yahoo will pick up business and career duties, and Apple's iTunes will provide free downloads to sate entertainment needs. Curiously enough, nobody is exchanging any cash up front -- Starbucks isn't paying for this and neither are you -- but the trick is as always to try and upsell you on to even more premium goodies, in which case the coffee chain and content provider have a revenue-sharing deal in place to split the profit. Doesn't sound like the worst idea in the world to us, bring on the freebies!
WSJ: Google 'agonizing' over user privacy, 'vision document' suggests selling data
It was just last week that the Wall Street Journal reported Microsoft's decision to limit private browsing in IE8 as part of its ongoing series on online privacy, and today the focus is on Google, which is said be "agonizing" over the balance between user privacy and advertising opportunities. It's a long piece that you should read in full, but essentially the WSJ claims that Larry Page and Sergey Brin have gone from strictly forbidding any efforts to track users online to a more subtle interpretation of their famous "don't be evil" motto which allows them to leverage user data and sell finely targeted ads without "exploiting customers." According to the WSJ, the change in attitude came with the rise of upstart ad firms that lacked Google's scruples and the search giant's purchase of DoubleClick, which led to Google's first use of cookies. What's more, once at Google, former DoubleClick exec Aitan Weinberg produced a seven-page "vision document" that outlined several strategies to profit from user data, ranging from building a "trading platform" for user data to allowing users to pay directly and get rid of ads all together. (Google says the document was for "brainstorming" and that some of the proposals are "complete non-starters.") The WSJ also says Google's working hard on that rumored social networking service to go head-to-head with Facebook, complete with a "like" button it can put across the web to build an even better profile of your likes and dislikes, and that the company is considering mixing user data from across services like Gmail and Google Checkout to make those profiles even deeper, all while trying to balance privacy, security, and legal interests. This balance appears to be causing significant tension between everyone at Google, Larry and Sergey included: the WSJ says the two founders have had shouting matches over things like selling "interest-based" ads, and that Sergey has been more reluctant than Larry to take advantage of user data. Like we said, it's a good read, so hit the source link and get to it.
Apple: No early knowledge of iPhone 4 antenna issues
What a roller-coaster day! The Wall Street Journal is now quoting Apple throwing cold water directly on today's Bloomberg story. Bloomberg had reported that an Apple engineer had warned company execs about the problems with the new iPhone 4 antenna design early in the development process for the phone. The Journal quotes an Apple spokesperson as saying: "We challenge Bloomberg BusinessWeek to produce anything beyond rumors to back this up. It's simply not true." The Journal also cites sources as saying there will be no recall of the iPhone 4 announced at the press event tomorrow. It's anyone's guess as to what Apple will say tomorrow. The company may say there is a problem and continue to offer penalty-free refunds, it may give free bumpers to insulate the external antenna to customers who want them, or it may say everything is fine. We can't wait. [Hat tip to Loop Insight & Business Insider]
Murdoch reveals News Corp iPad app sales numbers at D8
Steve Jobs wasn't the only CEO on stage at the D8 conference this week -- Rupert Murdoch, CEO of News Corp, also took the stage this week, and shared some sales figures for his company's iPad news apps. The Financial Times' app is the biggest winner, with 130,000 downloads, although that number is probably so high because the app itself is free. The Guardian Photography app (not part of News Corp, but still a print publication), also free with a sponsorship, has 90,000 downloads, and the Wall Street Journal app (free to subscribers) has 10,000 downloads. Internationally, the numbers are a little lower, though the iPad only went on sale overseas last week. The Times iPad edition has only sold 5,000 copies, and The Australian's app has sold 4,500. Murdoch is just as optimistic about Steve Jobs, though, in believing that where there are iPads, people will want material to read on them. "After all," he told the crowd, "what's an iPod without music? A high-definition television without popular shows? An e-reader without news or books?" And he's got a point, but the question will be if there are enough iPad owners out there who are willing to pay for content for print publishers to make their business profitable again.
Japan gripped by iPad frenzy
It's not easy to get gadget-friendly Japanese customers especially enthused about a new gizmo. Yet, as the Wall Street Journal points out, anticipation for the iPad's release in the land of the rising sun is high. As customers line up outside a Ginza Apple Store days in advance, more than a half-dozen Japanese business and technology magazines feature the iPad on their cover. What accounts for the frenzy? Daisuke Wakabayashi, writing for the Journal, names several factors. First is the Japanese electronics industry itself. Facing infiltration by new and less expensive gadgets from the likes of Apple and Amazon, as well as the large bank roll of South Korean competitor Samsung Electronics Co., many Japanese companies have focused on improving existing devices, and less so on creating something new, so innovation like the iPad makes a big splash. Another factor, Wakabayashi notes, is the sheer pleasure of owning a name-brand device. In Japan (and so many other parts of the world), Apple products are fun to own and show off. College student Kazuto Ishimura told the Journal, "Japanese products are very capable and powerful, but they don't have the same charm as ones made by Apple." Note that Ishimura conducted his interview while waiting in line outside that Ginza Apple Store. There's more to Wakabayashi's article, and we suggest reading the whole thing. In the meantime, we anticipate sales reports from Japan and elsewhere as the iPad goes on sale internationally throughout the day today. [Via MacDailyNews]
Verizon CEO: We want the iPhone
Almost since the day it was revealed to the public, American customers have been clamoring for the iPhone to be made available on Verizon's network. Many potential iPhone buyers have cited their distaste for AT&T as their primary reason for not jumping on the iPhone train, and the chant has been relentless for almost three years now: "We want the iPhone on Verizon!" One more voice has joined that chorus: the CEO of Verizon, Ivan Seidenberg, told Apple outright that Verizon wants to carry the iPhone on its network. Nothing coy about it: if Apple will build it, Verizon will come. This is a complete 180 from Verizon's stance in 2005, when Verizon rejected Apple's iPhone offer, saying they couldn't come to a deal that was "mutually beneficial." Seidenberg reportedly brought up his overtures to Apple following the recent Wall Street Journal report on the forthcoming Verizon iPhone. This could mean a couple of things: either there's no Verizon deal yet and the Journal's report was premature speculation, or there is a deal in progress, but the final details have yet to be hammered out. Verizon has very likely spent the past three years kicking itself over its rejection of the iPhone three years ago. Here's hoping a Verizon-Apple deal does eventually come to fruition. It would be a big win for both companies, but more importantly, it would be an even bigger win for US customers. [Via MacRumors]
iPad apps: news and magazines
Apple's done a pretty good job convincing the old media that the iPad will save their industry, so we've taken our time trying out the launch titles in the App Store -- it's plain to see that different publishers have radically different ideas about how you're supposed to buy and consume their content, and everything from pricing to UI is currently up in the air. But while the apps we've seen so far are definitely intriguing, we haven't seen any silver bullets yet -- and to be perfectly honest, in several cases we wondered why an app was preferable to an iPad-optimized web site, or even (gasp) a paper subscription. Let's run down the launch lineup, shall we? Update: We added in NPR and Zinio by popular request, check 'em out below!
WSJ iPad subscription sets you back $17.29 per month
You know that free Wall Street Journal iPad app that was introduced yesterday? If you want anything more than the top articles and basic market data you'll need to fork out US$17.29 per month. That's what an iPad WSJ subscription will cost you. That's $3.99 per week. Engadget is quick to point out that a subscription to both the print and online versions of the WSJ will only run you $2.69 a week. The Wall Street Journal is offering full access to the WSJ iPad app for free "for a limited time" to current subscribers of the print and online editions so technically, you can save $6 to $9 a month and get access to the full iPad app if you just sign up for their paper. It's that "for a limited time" that's iffy though. Does that mean one month or six? We all know Murdoch loves the iPad, but man Rupert, you're entering a whole new category of digital distribution. Why price people out of wanting to try out the whole experience?
WSJ iPad subscription officially $17.29 per month -- is Murdoch insane?
So we now have the official price for the WSJ iPad app subscription: $3.99 per week with a monthly credit card charge of $17.29. For that you get subscriber-only content areas such as Business and Markets with access to a 7 day archive that can be downloaded and read at any time. It also offers personalization features and the ability to save sections and articles for later reading. And hey, it's actually a bit less than the rumored $17.99 rate. Without the subscription, the free WSJ iPad app is limited to top articles and market data. Here's the catch: a subscription to both the print and online versions of the Wall Street Journal will currently set you back just $2.69 per week (plus 2 weeks free) for a monthly bill of $11.67... eleven dollars and sixty seven cents. Granted the WSJ claims that the 80% discount is a limited time offer but these newsstand discounts are always available in some form. Greed or insanity? Either way, a pricing model like this won't save print. Update: Fine print says, "Already a WSJ subscriber? Get full access to the iPad™ app for a limited time." That offers some hope to existing subscribers but doesn't make the prospect of subscribing any more attractive to new customers. Unless of course the whole iPad rate can be circumvented by obtaining a login ID and password via the cheaper online-only rate (currently set for $1.99/wk or $8.62/mth). Who's going to try this on Saturday?
WSJ: Apple 'developing new iPhone,' plus another for Verizon (update: iPhone HD, front-facing camera?)
You heard right, folks -- according to the Wall Street Journal, Apple is currently "developing a new iPhone to debut this summer," and as if that weren't enough, it's also "working on another model for US mobile phone operator Verizon Wireless." As of this moment, details about the break are nowhere to be found, but it's not like either tidbit is shocking. This summer will mark the one-year anniversary of the iPhone 3GS, and if the Cupertino-based company keeps with its historical refresh pattern, we're just a few months out from seeing the latest and greatest iPhone. There's also been no shortage of iPhone-to-Verizon rumors over the years, with the latest of 'em happening during the run-up to the iPad's launch. Update: We're now learning that the "next iPhone is being manufactured by Taiwanese contract manufacturer Hon Hai Precision Industry," which just so happens to be the same outfit responsible for crafting all prior iPhones. That's according to "people briefed on the matter" and sourced by the WSJ. It's also stated that the world's first CDMA iPhone will be manufactured by Pegatron Technology, which we caught just last week dabbling in some of NVIDIA's Tegra 2-based wares. If all goes well, Pegatron could begin mass production of the CDMA iPhone (exact model not disclosed) this September, so it's hard to say if Sprint or Verizon would have access before the all-too-lucrative holiday season. As for quotes on the matter? Most everyone involved wouldn't say a word, but an AT&T spokesman did utter the following: "There has been lots of incorrect speculation on CDMA iPhones for a long time. We haven't seen one yet and only Apple knows when that might occur." On a week that couldn't possibly get any bigger for Apple, that's exactly what just happened. Everyone suspected that a fourth-generation iPhone was in the works, but having an outlet like the WSJ confirm it just makes the summer that much harder to wait for. There's also the possibility that 2010 will be the final year that AT&T retains its death-grip on the iPhone, but by the sound of this report, it still seems as if the nation's largest GSM carrier may nab exclusive rights on the latest iPhone. We also can't help but wonder about the future of a true 4G iPhone -- will Sprint manage to grab a WiMAX-enabled version? Will Verizon get its grubby paws on an LTE model? We figured only Jobs would know, but now... there might just be someone else out there willing to spill the beans. Update 2: Soon after the news broke, we were informed that the next-generation iPhone would be announced on June 22nd (a Tuesday, naturally) and would be dubbed the iPhone HD (a name that has been tossed around before). That certainly makes sense given that Apple almost certainly has to up the pixel count in order to rival the EVO 4G, HD2 and all of those other high-res handsets, but we're still reserving judgment until we see that fateful media invite hit our inbox. Update 3: John Gruber's just weighed in with some more tidbits, in his characteristically polite way. Gruber says the next model will have an A4-class SoC, a 960 x 640 display, a front-facing camera, and that iPhone OS 4.0 will enable third-party multitasking. A pretty safe set of predictions, in all, but Gruber's done pretty well in the past, so we'll just have to wait and see. [Thanks, Chris]
WSJ on the iPad will be $17.99 a month
Engadget reports that "people familiar with the matter" have stated The Wall Street Journal will be available on the iPad for a $17.99 a month subscription fee. The source comes from the Journal itself, so it's a pretty good bet this is accurate info. Engadget notes that the iPad subscription price is about $11 a month less than the subscription fee for the paper version of the Journal, but the iPad version of the Journal will still be ad-supported via advertisers like Coca-Cola and FedEx. A few other magazines are leaking pricing info, as well. Esquire plans to offer an ad-free, downloadable format of its April issue for $2.99, $2 less than the paper version's price. Interestingly, the magazine will also be including five free music videos with the issue. Although the electronic version of the Journal is well below the price of the newspaper version, $18 a month still seems pretty steep to me. Then again, I've spent the past ten years getting almost all of my news for free online, so I'm probably not their target demographic anyway. At least The Wall Street Journal has a better pricing scheme for its electronic content than some other content providers; Men's Health is reportedly going to charge the same $4.99 price for an iPad issue as they charge for the print version. If Men's Health offered the iPad version of their issues ad-free for the same price that would be one thing, but its iPad version is both ad-supported and the same price as newsstand issues. This seems like a pretty boneheaded move on their part, but sadly, it's one that I predict many other publishers will make over the coming months until they notice how dismal their sales are. [Via Engadget]
WSJ on iPad for $17.99 a month, magazines to be at or near newsstand prices?
The Wall Street Journal is running a piece that focuses on ad sales for the iPad. Pretty boring stuff except for a few nuggets related to the actual content we crave. Rupert Murdoch already confirmed that his monument to main stream media was coming to the iPad. Hell, they've even been treated to a rare, in-house device to assist with the development of the iPad version of the Wall Street Journal. Now it's quoting "a person familiar with the matter" (wink) who says that The Journal plans to charge subscribers $17.99 per month for iPad subscriptions -- for comparison, the print version of the WSJ costs $349 for 52 weeks or about $29 per month. Not bad, but you can't roll up an iPad to swat the dog. Conversely, magazines appear set to offer weekly or monthly editions out of the gate, not annual subscriptions. Sources told the WSJ that the April issue of Hearst's Esquire magazine (no stranger to new media) will arrive in downloadable format without advertisements for $2.99, $2 less than the newsstand price, and will include five music videos (each containing the phrase "somewhere in Mississippi," oddly enough) to take advantage of the device's multimedia capabilities. On the other hand, a full iPad issue of Men's Health with match the glossy's $4.99 price. Of course, as we heard earlier, publishers will be experimenting with advertising and pricing models to see what works so expect things to be fluid for quite some time after the April 3rd launch.
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.
NPR and WSJ building 'Flash-free' pages for iPad, Apple quietly delays select iPad accessories
For awhile, we couldn't decide what we were more angry at: the fact that select devices wouldn't support Flash, or that Flash was simply too demanding on select devices. We still can't say with any degree of certainty which side of the fence we're on, but there's no question that Apple's refusal to play nice with Adobe on the iPhone, iPod touch and forthcoming iPad limits the abilities of those devices significantly. Curiously enough, it seems that Apple's importance in the mobile (and media delivery) realm is coercing select portals to develop Flash-free websites for those who drop by on an iDevice. Both the National Public Radio and the Wall Street Journal are furiously working on iPad-friendly websites, which will be devoid of Flash for at least the first few pages down. What's interesting is that we get the impression that this will soon become the rule rather than the exception, and it could be exactly what's needed to launch HTML5 into stardom and put these Flash or no Flash debates behind us. In related news, we're also seeing that a couple of iPad accessories won't actually be ready to ship when the device itself cuts loose on April 3rd. Yesterday, the iPad Keyboard Dock was listed with a "May" ship date, though today it has moved up to a marginally more palatable "Late April." The iPad 10W USB Power Adapter also carries a "May" date, while the iPad Case is slated for "Mid April" and that elusive camera connection kit is still nowhere to be found. But hey, at least you'll get your (overpriced) iPad Dock Connector to VGA Adapter and iPad dock by the first weekend of next month, right?
