gunrag.net

Halvorson almost certainly explained the reasoning behind the shutdown because of questions raised by Brad Greenspan, the MySpace co-founder. Greenspan, who operates online entertainment network LiveUniverse, attempted to acquire Stage6’s assets last month. When he was rebuffed, he went public.

“Our previous indication regarding the cost of running Stage6 remained accurate,” Halvorson said in the conference call. “While the traffic to Stage6 did help generate some revenue…the continued operation of the site would take substantial financial investment.”

Greenspan suggested in a press release that DixX managers failed to look out for shareholder interests by choosing to close Stage6 instead of selling.

“DivX could have bought its way out of the mess. Universal Music offered the company a chance to license its content for $30 million. The offer was turned down.”

Not surprisingly, a month after DivX filed suit against Universal Music, the label responded by filing against DivX. That copyright case still hangs over DivX’s head. One interesting side note is that DivX could have bought its way out of the mess. Universal Music offered DivX a chance to license its content for $30 million, according to papers filed with the court. The offer was turned down.

“Potential copyright litigation” was one of management’s top considerations leading up to the shuttering of Stage6, Dan Halvorson, DivX’s chief financial officer, said during a conference call to announce the public company’s fourth-quarter earnings. There was reason for concern. Turns out DivX, a maker of Internet-video technologies, had lost a bid to avoid fighting costly copyright suits just a few weeks before Stage6 was closed, records show.

On February 5, just three weeks before Stage6 went dark, U.S. District Judge Dana Sabraw (PDF) dismissed DivX’s action against Universal Music, according to court records. (Blogger Davis Freeberg was first to report the judge’s decision.)

It didn’t work.

DivX, parent company of defunct video-sharing site Stage6, on Tuesday disclosed how it came to the decision to shutter the service rather than to sell.

DivX’s problems started this way: last fall, Universal Music Group, the largest of the top four labels was making noise about unauthorized copies of its content posted to Stage6. In a bid to head off a lawsuit from the record company, DivX filed first. In September, DivX sued Universal Music to try to win a favorable ruling that Stage6 was not responsible for illegal acts committed by users under the Digital Millennium Copyright Act.

Beyond the legal questions, DivX also said the “significant costs” of running Stage6 was a factor in its closing.

The controversy illustrates some of the financial and legal risks involved in operating a video-sharing site. YouTube, buoyed by Google cash, can afford to challenge entertainment conglomerates in court. Not everybody else can.

As for Vista, she was a bit taken aback by its new interface, but seemed reasonably able to navigate through things.

To make sure I had the right impression, I gave my top-secret source a call on Tuesday.

“I was calling because I’m writing a blog on the one year anniversary of Windows Vista.”

There were a couple things she explained. Sometimes she gets a message from Windows Live OneCare. “I don’t get what they want me to do.”

“Oh.”

But, overall, she said, she’s been pleasantly surprised. “The things I’ve wanted to do on the computer, I really haven’t had a problem with,” she said. “I don’t think I’ve had any true glitches or problems that I didn’t have on the old computer.”

“Hello.”

The real test, I knew, would come in the ensuing days and months. I waited for the phone to ring with news of a problem. It didn’t. In fact, I’ve had zero support calls so far.

Note: This is one of a series of blogs being published Wednesday, the first anniversary of
Windows Vista’s consumer launch.

Last spring, my mom got a new computer. She really, really wanted an XP machine because that’s what she knew and loved. Well, that’s what she knew anyway.

Perhaps the best indicator I have on Windows Vista is what I scientifically call “the Mom test.”

“Hi Mom.”

After I set the machine up, she got to working on her new Toshiba laptop. Most of the things she liked had nothing to do with Vista and everything to do with the fairly standard keyboard I got her. I programmed a few function keys to open each of the handful of programs she actually uses–a big hit.

“So I wanted to see how it’s going.”

“The operating system on your computer.”

“I’m actually doing well,” she said.

She was initially skeptical. She was worried it wouldn’t work with her Palm handheld and also that it wouldn’t work with a specific program she needed for her job as a geriatric case manager. After doing some research and assuring her that both would work with Vista, she grudgingly agreed to get a Vista machine.

And there’s this other message, she explained, that keeps asking her if she is at home or work. (That’s actually Vista trying to automatically apply security policy based on the type of network). “I don’t see why they need to know, so I just close the window.”

But my mom also decided she wanted to buy it at retail on the weekend I was home visiting. I think it had something to do with having her own personal “geek squad” to set it up. I tried to assure her that only a few XP models were around, meaning, to get the other things she wanted, she really needed to go with Vista.

So that’s the “mom” test. I’ll be posting a few other looks Wednesday at how Vista is shaping up, a year after its consumer launch. Feel free to drop me an e-mail with your experiences at ina dot fried at cnet.com, or sound off below.

“Of what?”

A few observations:

Microsoft’s making another pass at Yahoo, but this time Steve Ballmer’s not trying to go all the way with Jerry Yang. Instead, he says getting to first base will be enough.

(Also take a look at the text of this memo Kevin Johnson sent updating his team on Microsoft’s search strategy.)

Forget shock and awe. This is more like making a pain in the neck of yourself until the other side caves just to shut you up.

B) In order to believe the above, Microsoft must also think Yahoo’s board is really desperate. Subtract whatever relevant Yahoo services would be covered in “online services and advertising” and what’s going to be left? Flickr’s great and millions use Yahoo Mail. A lot hinges on what Microsoft has in mind but Yahoo is going to be careful not to commit ritual hara-kiri by ripping out the guts of the company. Say what you want, but we’re not talking about a collection of village idiots.

“In light of developments since the withdrawal of the Microsoft proposal to acquire Yahoo Inc., Microsoft announced that it is continuing to explore and pursue its alternatives to improve and expand its online services and advertising business. Microsoft is considering and has raised with Yahoo an alternative that would involve a transaction with Yahoo but not an acquisition of all of Yahoo. Microsoft is not proposing to make a new bid to acquire all of Yahoo at this time, but reserves the right to reconsider that alternative depending on future developments and discussions that may take place with Yahoo or discussions with shareholders of Yahoo or Microsoft or with other third parties.”

C) Of course, with shareholder suits and Icahn circling, Yahoo’s board is under a lot of pressure. By offering to return to the negotiating table, Microsoft’s offer may have the effect of preventing Yahoo from pursuing a rumored deal with Google for search ads. In the end, maybe Microsoft can secure a similar deal for itself–or even something more–with Yahoo. And that would leave the door open to further negotiations, especially as the proxy fight plays out. (Reuters is reporting Sunday that Microsoft has not yet held any discussions with Icahn.)

A) Microsoft must believe Yang’s position is a lot weaker than it was when it ended negotiations about a possible acquisition. That’s easy to understand considering the howling from Yahoo investors about losing out on a sure payday. Especially in light of Carl Icahn’s decision last week to wage a proxy fight, Microsoft may be thinking that Yahoo’s board would be more amenable to a partial buyout than it would to a 100 percent acquisition.

Google is partnering with homeless shelters in San Francisco to distribute free phone numbers and voicemail accounts to those without homes, the company said Wednesday.

The Internet giant is expanding a service that was started by Grand Central, a San Francisco-based start-up that Google acquired last year. Grand Central’s technology allows calls to be routed to a home, business, or cell phone using a single phone number. The service offers people a way to organize and unify their communications, a Google spokesman said.

Grand Central had already been offering the free phone number and voicemail service to people in San Francisco through Mayor Gavin Newsom’s Project Homeless Connect, which brings together nonprofit organizations and other social-service providers in one location to provide on-the-spot services for homeless. The services include medical, mental health, substance abuse, housing, dental, and legal services, plus free eyeglasses, California ID, food, clothing, and wheelchair repair.

Since the acquisition of Grand Central last year, Google has been participating in periodic Project Homeless Connect events in which it has been providing the homeless with free phone numbers and voicemail accounts that they can access from any phone. More than 4,000 phone numbers and voicemail accounts have been distributed this way, Craig Walker, a senior product manager of voice products for Google, told the San Francisco Chronicle.

On Wednesday, Google announced that it would expand Grand Central’s project and partner directly with homeless shelters that will now be able to give out phone numbers and voicemail accounts and help individuals set up their accounts anytime. The idea is to expand the service, and eventually offer it in other cities, a Google spokesman said.

Most Americans take telephony service for granted. Nearly every household in the U.S. has phone service, thanks to the federally funded Universal Service Fund. What’s more, more than 80 percent of the population owns a cell phone.

For homeless individuals, a phone is a luxury, and yet, telephony communications is an essential tool in our society. Without a phone number you can’t apply for a job or even get on a waiting list for low-income housing.

Between 25 percent and 40 percent of the nation’s 750,000 homeless are unemployed, according to a 2005 survey conducted by the advocacy group the National Alliance to End Homelessness. And without a way for a potential employer to reach these people, they are often destined to remain jobless and most likely homeless.

Another shocking statistic is that individuals with children make up about 40 percent of the national homeless population and the average age of a homeless person in the U.S. is 9 years old. Imagine a teacher or school social worker not able to contact a parent of a homeless child because the parent doesn’t have a phone.

“When you lose your home, you lose more than your house,” said Google’s spokesman. “You lose a permanent way of staying in touch with family members, employers, and social service providers. Being able to give a phone number to people and access voicemail can be a very powerful thing in sustaining quality of life.”

(Credit:
TomTom)

Remember the TomTom One 3rd Edition GPS from a couple weeks ago? It was a sweet deal at $119.99, but now it’s even sweeter: Buy.com has refurbished Ones on sale for $99.99 (after a $20 mail-in rebate). Shipping is on the house.

I won’t reinvent the wheel, here–check out my original post if you want to read more about this well-regarded navigator. I will say that it’s rare to find a big-name GPS for under $100; most models in that price range are off brands. The rebate deal ends April 20, so if you want in, chop-chop.

Find more deals, coupon codes, and bargains on CNET’s Shopper.com.

The endless rumors and speculation over the G1 ended Tuesday when the T-Mobile phone officially made its debut. How does the first mobile device to run on Google’s Android operating system stack up to expectations? CNET News reporters Stephen Shankland and Tom Krazit parse it out.

Plus, Chrysler gets into the electric car race, and a stroller that folds up all by itself. Listen now:

Download today’s podcast

Today’s stories:

The Android era begins

Windows Mobile 7 release delayed

Second of 11 alleged TJX hackers pleads guilty

Chrysler gets into electric car race

Intel putting $20 million in business social-net firm

Unisys CEO to step down

Dell launches global charitable initiative

Origami stroller uses wheel power

Sony Ericsson C905c

(Credit:
Sony Ericsson)

Like in previous weeks, more Samsung phones passed through the Federal Communications Commission since Monday. But Sony Ericsson also had a few new models, most notably the Sony Ericsson C905.

Because the FCC has to certify every phone sold in the United States, not to mention test its SAR rating, the agency’s online database offers a lot of sneak peeks to those who dig. And to save you the trouble, Crave has combed through the database for you. Here are a selection of filings from the past week on new and upcoming cell phones. Click through to read the full report.

HP FS88/FS90

Huawei U3307q

Kyocera S1300

LG L02A

LG AX265

LG CF750

LG KC910QA

Motorola

Motorola

Motorola

Motorola i9

Nokia (RM-494)

Nokia (RM-384)

Panasonic

Pantech C320

RIM BlackBerry

Samsung SCH-U650

Samsung SGH-F128

Samsung SGH-T201G

Sony Ericsson C905c

Sony Ericsson S302

ZTE GX761

ZTE Vodafone 1231

Ricoh R8

(Credit:
Ricoh Co., Ltd.)

After a several-year hiatus, Ricoh re-entered the U.S. digital camera market last year with the GR Digital II. That camera should feel a bit less lonely on the shelves now that Ricoh has announced another U.S.-bound model: the R8.

The compact R8 uses a 1/2.3-inch 10-megapixel CCD and features a relatively slow but relatively wide f/3.3-5.2 28mm-200mm-equivalent 7.5x zoom lens. It also incorporates CCD-shift image stabilization and a somewhat high-resolution 460,000-pixel 2.7-inch LCD display. Although it offers the ability to select your autofocus/autoexposure target point, it lacks aperture- and shutter-priority exposure modes.

Ricoh expects to ship the R8 in early March for $399. Ricoh simultaneously announced the 10-megapixel, 5x zoom R50, but that’s just for our buddies across the oceans.

commentary

So many good stories, so little time….Here are a few of the best posts today:

You might not be able to get Google-like profits, but at least you can treat your employees more like how Google treats its own employees. There’s a good lesson in there….
Most of the music on the iPods of UK youth has been pilfered. Surprising? No. There are two interesting factoids in the data, however:
“80% of those who admit to illegally file-sharing are prepared to engage with a legal file-sharing service, and place a considerable monetary value on it”; and
The older people get, the more they pay for music. 55 percent of youth aged 14 to 17 illegally download music, jumping to 60 percent when they’re aged 18 to 24, but dropping down to 39 percent when aged 25 and above.
Does this mean that “old fogey” music is more likely to be monetized than Britney Spears?
The next version of JBoss has been significantly delayed, but Red Hat insists the delay will be worth it as it invests heavily in updating and refactoring the code: “We are better off [than rivals] because we bit the bullet - everything will interoperate.”
Nokia suggests that the open-source community can learn from businesses, in particular how to take a conciliatory approach to resolving complex business problems (like DRM). Worth reading.
Michael Tiemann argues that user-generated innovation, a la open source, is a more sustainable model for software development than proprietary software. It’s a useful read if you’re prone to thinking that individuals qua individuals are weak.

Walt Mossberg (left) interviews Sony CEO Howard Stringer (right) at the D: All Things Digital conference Wednesday.

(Credit:
Dan Farber/CNET News.com)

CARLSBAD, Calif.–Sony CEO Howard Stringer says the culture of profitability has returned to his company. But, he says, it still has work to do.

In an interview with Stringer at the D6 technology and media conference, The Wall Street Journal’s Walt Mossberg started by pointing out the failures of Sony’s digital music player and interactive TV ventures. Stringer said that Sony is now running about 5 percent profit margins. Those margins need to get bigger to sustain the company, or, he says, “If we have any more success, we’ll be bankrupt.”

Speaking about the culture of the Japanese business he runs, he said it’s difficult to adapt quickly–there’s no laying off of white-collar workers or engineers. Hence, perhaps, his “get mad” rant last week. Stringer also delved into what’s in Sony’s future–from OLED TVs to game consoles and “craplets.”

What’s after LCD TVs?
LCD growth is beyond expectations, Stringer said, but OLED technology, while still too expensive, is the next thing. Or the current thing, if you want to spend $2,500 for an 11-inch screen. Its contrast ratio is a million to one, he said, a hundred times brighter than an LCD screen.

In a bit of D6 showmanship, Stringer showed a new version of the screen that’s only 0.3 millimeters thick, and that could be formed in curves “wrapped around your arm,” he said. A 27-inch version will be out soon. “It will be quite expensive. The only people who could buy them will be in this room.”

The technology will eventually supplant LCD, Stringer believes, although at the moment he calls it “a perfect television companion.”

It appears that Sony is pushing this technology in part because it’s actually manufacturing these panels, unlike many Sony-branded LCDs, which it sources from other vendors.

Game consoles and Blu-ray
The expense of the
PlayStation 3 at first led to a “mildly catastrophic” profitability curve, Stringer said, but the prices are coming down and the game titles are generating profits. He said the next game coming out, in June, will use the “full capacity” of the console and will be “spectacular.”

The console is beginning to become a platform for more than just games–a hub for the PSP, for example. The PlayStation Network was key to Sony winning the Blu-ray/HD-DVD battle, Stringer said, since the PS3 was a great movie-playing platform.

In standard Blu-ray players, Sony did lose money on the players as the company had to chase the HD-DVD player market and its $99 retail prices. But the studios supported the Blu-ray format, which made the bigger difference.

Mossberg asks how many years of value Sony will be able to eke from that victory, especially as the move is to digital distribution. “There’s a long lead time,” Stringer said, “before you get the quality, you get on Blu-ray.” He thinks the media format will last for 10 years or beyond, especially as people migrate to better and better television screens.

“Had I lost that war,” Stringer said, “the headline would have been, not that HD-DVD won, but that it was Betamax 2. That would have been on my tombstone.”

Movies and theaters
“It’s a battle of pocketbooks and reality,” Stringer said. “4K” digital projects are a better experience and will keep the theater experience unique. It’s “transformational,” he said. However, the economics of the movie experience, from cameras to projectors, will take time to rebuild.

Children drive the movie economy, especially in summer. “Whether the baby boomers will continue to go the theaters is a bigger issue,” Stringer said.

Personal computers
“We had our best year ever last year. We had a 7 percent margin, our best ever.” Mossberg asked about market share, though. It’s because, “ours is the most expensive,” Stringer replied.

“Our engineers like being on the cutting edge,” he said. And “we have signs of life all over the place.”

Mossberg gave Stringer a hard time about Sony PCs’ pre-loaded software, or “craplets.” Other vendors are removing the pre-loads, Mossberg said. “Are you willing to get rid of these craplets?”

Stringer: “No, I have to examine the joy of craplets. And you’re not a typical consumer.” But, he said, “I promise you a craplets review.”

Re:
iPod
“We’ve sold about 170 million music-enabled phones–about 75 million to 80 million are Walkman phones.” Which is more than iPods, he said. Stringer said that Sony’s Walkman phones revitalized the brand, and drove the success of the Sony-Ericsson phone lines.

And, Stringer said, we’re doing more download relationships, like one we’re announcing today with Usher.

The Sony music player, which had been overshadowed by the iPod, is “back in the game. We keep trying.”

Mossberg asks: Will phones kill the dedicated portable media player? Stringer: “Steve [Jobs] keeps up, but there’s room for two devices.”

Click here for full coverage of the D: All Things Digital conference.