snapshot 6/6/07

Stash stuff online with us, tech firms say
http://news.yahoo.com/s/usatoday/20070606/tc_usatoday/stashstuffonlinewithustechfirmssay;_ylt=AnTwowD0u1FmHvqwsTXg5Q5kM3wV
Tech giants AOL, Microsoft, EMC and Amazon are among more than two dozen companies developing services to allow people to store data in cyberspace. But most people are accumulating a variety of digital data, including videos, songs and presentations, says Amazon Vice President Adam Selipsky. All that information needs to be backed up somewhere. Online storage is becoming a compelling alternative to extra hard drives or other devices, says tech analyst Doug Chandler at researcher IDC.


Kids' first exposure to gaming, cell phones becoming earlier
http://arstechnica.com/news.ars/post/20070606-kids-first-exposure-to-gaming-cell-phones-becoming-earlier.html
Kids are being exposed to consumer electronics at ever-younger ages, according to a new report, and the frequency of use is going up for some devices. The average age that kids first use consumer electronics was 8.1 years in 2005; it has now fallen to 6.7 years old, according to the NPD Group. The use of portable digital media players (PDMPs), portable video games, and digital cameras saw the largest percentage growth, with the use of cell phones and portable DVD players also growing.

"Kids are drawn to the latest and greatest digital devices just as their parents are," NPD analyst Anita Frazier said in a statement. "They appear to have no fear of technology and adopt it easily and without fanfare, making these devices a part of their everyday lives."


Apple TV Cost Breakdown
http://www.macrumors.com/2007/06/06/apple-tv-cost-breakdown/
According to the report, Apple's margins on the product appear to be uncharacteristically slim from a consumer electronics product. While Apple is used to margins in excess of 50% on such products, iSuppli estimates the 40 GB Apple TV's bill of materials at $237, leaving a margin of $62 (approximately 20%). The newly released 160 GB version of the Apple TV is estimated to have a better margin at 30%.


Lala's Lack Of DRM Looking Increasingly Like DRM
http://techdirt.com/articles/20070606/003822.shtml
Yesterday we wrote about Lala.com's new service that supposedly would offer DRM-free songs for purchase from Warner Music. We noted the oddity of supposedly DRM-free files only being able to be loaded onto iPods, since that suggested there clearly was some form of restriction on the files. However, it's becoming clear that there are certainly some types of DRM being used. In Bob Lefsetz' latest blog post, he notes that each file has a watermark that identifies its owner, and if you're not the owner, you won't be able to play that song. In other words, the supposedly DRM-free tracks... have DRM.


Wal-Mart takes swipe at prepaid card
http://money.cnn.com/2007/06/06/news/companies/walmart.reut/index.htm?section=money_topstories
The world's largest retailer will launch a Wal-Mart MoneyCard, aimed at customers who do not have bank accounts, a newspaper reports.


Tesla Releases Two Disc CD With A Twist
http://hypebot.typepad.com/hypebot/2007/06/tesla_releases_.html
Yesterday hard rockers Tesla released a new double CD "Real To Reel" with a creative marketing twist. To fill the second spot in the CD case sold at retail, fans must attend a concert on the band's upcoming summer tour where they'll be handed out.


Why DRM won't ever work
http://news.zdnet.com/2100-9588_22-6189011.html
Trying to make Digital Rights Management (DRM) work in the real world is like asking engineers to do "Star Trek" style magic, rather than real engineering. DRM simply cannot work. DRM is applied to digital data by one party, usually the vendor of a music or movie, and encrypts the data to be protected using an encryption algorithm and a key. The other party in the transaction, the consumer of the music or movie, is then given the encrypted data, knowledge of what algorithm is used to encrypt the data, and a copy of the encryption key used to encrypt the data. All of these things must be supplied to the consumer in order for them to be able to use the data; without them, there's no way the consumer can listen to or watch the data they've just bought. Yet DRM is supposed to be able to restrict what the customer can do with the data.


Music biz faces new realities
http://www.newyorkbusiness.com/apps/pbcs.dll/article?AID=/20070603/FREE/70602014/1008/toc
Execs focus on ring tones, ads to make up for falling CD sales; new deals.
Mr. Pitts is one of many label executives facing up to the new realities of the music business. With industrywide CD sales plunging 20% in the first quarter and digital sales failing to make up the difference, companies are scrambling to do deals that will generate revenues beyond traditional recorded music sales.


Might Amazon Deliver Netflix?
http://www.forbes.com/technology/2007/06/06/amazon-netflix-buyout-tech-cx_0606paidcontent2.html?partner=rss
An interesting rumor, which makes logical sense if you think about it: Jackson Securities analyst Brian Bolan said in a note today that he has heard buyout speculation of Amazon.com buying Netflix from industry contacts. He noted it would make sense for Amazon to look at Netflix now, in part because Amazon's stock has been trading higher lately.