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We've written about well-known entrepreneurs like Aaron Patzer, Bret Taylor, Christophe Bisciglia, and Max Ventilla in past reports, so we're looking for fresh faces. Tell us your nominees by March 19. We'll publish a report based on the results in late April.
Google made plenty of noise with its January announcement that the company was ?no longer willing to continue censoring? its Web search results in China at the behest of that country?s policies. But nearly two months later, the company has not followed through on the threat and is less likely to shut its Chinese site, according to a recent study by analysts at Piper Jaffray.
Searches done on ten ?sensitive? keywords in the Mandarin language on Google.cn, the company?s Chinese search site, yielded 52% fewer results than searches for the same keywords on the uncensored, English-language site, the analysts said in a research report on March 5. That confirms the censors are still in effect. And there may actually be a higher level of filtering on Google.cn now than there was in January, when Piper Jaffray found 40% fewer search results on the censored search engine for the same ten keywords.
The likelihood that Google will shutter Google.cn has diminished to 50% from 70%, Piper Jaffray analyst Gene Munster writes in a research note.
The results of this study are line with reports that the company?s executives are in talks with Chinese officials, and are waiting to lift censorship in the country until the parties reach some resolution. Google employs hundreds of people in its Beijing offices, and some analysts take recent actions ? such as looking to hire new workers there and introducing new mobile products ? as signals that it intends to keep operating in the country to some capacity.
Still, it?s unclear how Google and China could reach a compromise, as the search giant remains resolute in its ultimatum. Google deputy general counsel Nicole Wong t Google vice president and deputy general counsel Nicole Wong told the US Senate Judiciary Committee on March 3 that the company is "firm in our decision that we will not censor our search results in China and we are working towards that end."
Google?s captioning initiative has now expanded to all uploaded English-speaking videos, with more languages to be added later this year.
By Guest Blogger Suzanne Robitaille
Ah, video and search. Frank Sinatra said it best: Try, try, try to separate them ? it?s an illusion. Here?s proof of that: Speech Technology. This week, Google sealed the deal on video search capabilities for its YouTube portal, saying it would provide auto-captions for all of its uploaded videos using proprietary Google's Speech Technology.
Google?s initiative, piloted in November, began with a handful of partner channels including PBS, Stanford University and National Geographic. It has now expanded to all uploaded English-speaking videos, with more languages to be added later this year.
With this news, Google establishes itself as a frontrunner in the Internet programming space. As a company built on search, search, and more search, Google is now able to capitalize on its investment in speech-to-text technology to index videos, target advertising and create an actual profit margin for YouTube. In fact, video search is likely why Google acquired YouTube in the first place.
The bigger news is that auto-captions will have clear benefits for the deaf and hearing-impaired population, who now will be able to better understand dialogue on uploaded videos. Up to now, this group had to rely on the goodwill of YouTube users to manually add captions to their videos. A time-consuming process, most users didn?t bother to do so.
At a press conference on Thursday, YouTube says accessibility is a key goal for the years to come. Even as Google touts a serious business purpose for auto-captions ? search -- it?s not hard to also believe in their commitment to making their products and services more usable for more of their customers.
Furthermore, Google is now removed from any ill will associated with Internet programming issues ? such as the ones plaguing network and cable broadcasters. On March 17, the Federal Communications Commission will unveil a proposed broadband plan that is designed to ensure, or at least improve, equal access to Web TV and movie programming for people with disabilities, which could including requiring captions.
Meanwhile, a House congressional committee is mulling the Twenty-first Century Communications and Video Accessibility Act of 2009 that would make captions for the deaf and audio descriptions for the blind into law for Internet broadcasters. The bill is backed by nearly 240 disability organizations known as the Coalition of Organizations for Accessible Technology.
TV broadcasters ? unlike Google ? already have transcripts available to them ? either on paper or in the form of regular TV closed captions, which have been required for almost all programming since 1990. And ABC has publicly committed to captioning all long-form content ? so the heat is on everyone else.
While YouTube videos are technically outside of the FCC?s realm, consumers don?t see it that way ? and they shouldn?t. That makes Google?s auto-captioning move financially savvy, and buys them consumer altruism at a time when broadcasters are facing down a potentially ugly battle over access issues.
This post was written by guest blogger Suzanne Robitaille. Robitaille is the founder and publisher of abledbody.com, a website covering assistive technology issues. She is the author of The Illustrated Guide to Assistive Technology.
Ever since the Oakland-based East Bay Express published an explosive story called Yelp and the Business of Extortion 2.0 a year ago, Yelp Inc. CEO Jeremy Stoppelman has been dealing with charges that the company has a bad habit of shaking down small businesses. The scheme, say critics, is that Yelp salespeople call small businesses that have been reviewed on the hugely popular business review site, and offer to let them manipulate the reviews if they pay to advertise with Yelp. Some business owners say that when they refused to advertise, they soon began to notice good reviews disappearing or negative ones becoming easier to find.
Now, the grumbling has led to a class action lawsuit. Who knows if the suit has merit, but one thing is for sure: it has refocused attention on the controversy. If the suit goes to trial, Yelp will likely have to disclose more details of its inner workings. While the company has always insisted that advertisers have no control over the reviews that appear on the site (other than the ability to highlight one "sponsored" review they like at the very top of the queue), it has refused to say much about the secret algorithms that determine which reviews appear and in what order.
If Stoppelman is worried, he sure doesn?t show it. In the days after the lawsuit was filed on Feb. 23, he wrote two self-assured blog posts (here and here) in which he confidently explained why he says Yelp is innocent. I wanted to take a deeper dive, to find out what it?s like for the CEO of a company that?s accused of wrongly besmirching corporate reputations to find himself on the hot seat. Stoppelman got on the phone with me on March 2. Here are edited highlights of our conversation.
BW: The class action suit has again focused attention on allegations that Yelp shakes down businesses to get them to advertise. How much is riding on Yelp?s ability to deal with the controversy?
Stoppelman: This [class action] is a reminder of the challenge we have ahead of us, and which we?ve had for the last year. What we?ve built is a system that works really well for consumers. When you read reviews on Yelp, you get a good sense of what?s going to happen when you walk in the door of that business. The challenge is that there are fifteen million businesses in the U.S., and its very hard to communicate with all of them about how Yelp works, and why it works the way it does. That?s an incredible challenge.
BW: There was a time when many people had their doubts about the integrity of search results--about whether search rankings were bought and paid for. A major reason for Google?s success was that it managed to establish consumers? trust that its search rankings were legit. Do you see any parallels to what's happening with Yelp?
Stoppelman: I see many parallels. When AdSense was introduced, there was a lot of fear and even belief that Google?s rankings would be affected by whether a site was using [this ad-serving system]. There were many articles written about that, too. Now we all love and trust Google. But when they first began wielding significant power, people got spooked.
BW: Did you?
Stoppelman: When Yelp first took off, our rankings on Google would fluctuate wildly. I remember thinking ?we?ve got this [potentially competing] product that is taking off; are they on to us?? There?s just a human tendency to want to explain things as if everyone is paying attention to you, when in reality it was just an algorithm.
BW: But the suspicions about Yelp have been around for more than a year now, and don?t seem to be easing. In fact, they seem to be intensifying. Why was Google able to win that trust more quickly?
Stoppelman: Google mines links (to determine rankings) and we mine reviews. The difference is that Google doesn?t have to show which links it is counting. It can be kept hidden from view. But reviews are written by people (who may notice if their review disappears, reappears or is moved up or down in the rankings).
BW: So how do you get out of the penalty box?
Stoppelman: The biggest thing is to create a product that consumers find useful. As more and more people like something, it becomes harder and harder to have a conspiracy theory about it.
There?s been resistance to every new technology that?s ever been introduced. When books came out hundreds of years ago, there were complaints that it would destroy the oral tradition. Some of those fears were justified, but it didn?t stop the rise of the written word. And books have proven to be incredibly useful.
BW: But there?s no question that consumers find Yelp very useful. The question is whether you are serving the needs of the businesses you need to advertise.
Stoppelman: Our business is about connecting consumers with great local businesses. The world of the past, where businesses could completely control their image, was nice. But overall, are there tremendous advantages for businesses by having power in the hands of consumers? Absolutely. The other day there was a story in the New York Times about a place called Ike?s Sandwich Shop. Yelp made his business; now he has to take reservations because the lines are so long.
BW: So is all the controversy hurting your business? It must make it a lot harder for salespeople to do their jobs.
Stoppelman: No, we?ve been through this before. This is the same press cycle we had a year ago?but now we?re better prepared.
BW: The plaintiff in the class action suit (Long Beach, CA-based veterinarian Cats & Dogs Hospital Inc) says that a Yelp salesman named Kevin repeatedly promised to make negative reviews go away if he would advertise on Yelp. Have you disciplined Kevin for breaking the company?s sales policies, and how many times have you had to discipline or fire salespeople for such transgressions?
Stoppelman: We?ve never had to discipline a salesperson about the issue that was laid out in the lawsuit.
BW: Yelp is well-known for throwing fun, alcohol-drenched parties for top reviewers. Should you be doing more outreach to businesses, too?
Stoppelman: They don?t involve alcohol, but we have hosted ten forums in five cities in recent months. I?ve attended three of them so far. We invite ten to twenty small businesses in the area?some advertisers, some not--to talk about how Yelp works and give feedback. They?ve been surprisingly positive. Business owners realize we?re an important and a low-cost driver of business?especially if they?re paying us nothing (because they don?t advertise).
BW: So far, we've discussed what Yelp needs to do to clear up misunderstandings and conspiracy theories. But some people say they understand the business, but don?t like a business model by which you take money from the companies that are reviewed.
Stoppelman: We survey every advertiser that signs up, and one of the things we ask is whether they realize that advertising is not connected to content and reviews. If they say no, they get a call from a salesperson to make sure.
BW: Danny Sullivan, a respected search industry analyst, thinks the only solution is for Yelp to let companies opt-out entirely. That way, only basic information on the company would appear, but no reviews. What not do this? It would go a long way towards proving to businesses that you?re not interested in extorting them.
Stoppelman: Why doesn?t BusinessWeek let me opt-out of having a story written about me? It?s a new generation of people out there (that want to communicate and share opinioins). Some of the content that appears on Yelp might have been created by a newspaper in the past---say, a review by a restaurant critic. It?s a clear question of free speech. If someone said a reviewer couldn?t write about a particular restaurant, there would be an outcry?how dare he be silenced!
Motorola General Manager Bruce Brda has big plans for the company?s networks mobility business, which specializes in next-generation wireless equipment and was recently spit off from a larger division.
The networks unit, which on Feb. 11 was combined with a unit that makes radios and computers for corporate and government customers, wants to boost revenue generated from services, such as helping carriers design and make more efficient use of their new wireless networks. Services already account for more than one-third of the division?s $4 billion in annual sales. ?There?s room to grow it by a few percentage points,? Brda says. The division, which employs thousands of people, is ?highly profitable,? he says. The unit?s financial performance and exact employee numbers have not yet been reported separately. Brda?s business specializes in gear for next-generation mobile networks, based on technologies such as Long-Term Evolution (LTE) and WiMax.
The idea is to offer a broader array of services for carriers that may use Motorola?s ? or other vendors? ? equipment in more markets, particularly in the Americas. While he wouldn?t provide any hiring projections, Brda expects to grow his services staff in the coming months.
Striking additional partnerships is also on the agenda. The unit already buys certain gear from partners such as Cisco. ?We will partner as a way to expand the reach of our products and to gain [research and development] efficiency,? Brda says. ?I believe we have all of the components carriers need in the next couple of years.? The division already sells LTE and WiMax gear to carriers like Verizon Wireless and Clearwire. In the coming months, Brda expects to win a large LTE contract with giant China Mobile. ?We are confident we?ll get that,? he says. ?We are winning as many [LTE] deals as everyone else.?
The February split from the home unit, which manufactures set-top boxes, shouldn?t affect the networks division?s ability to find customers and win business too much. ?The decision Motorola had to weigh is what business has the most synergy [with the home business],? Brda says. Motorola envisions creating cell phones that act as remote controls for televisions and set-top boxes, among other functions. ?My goals, my financial objectives haven?t changed whatsoever,? Brda told me this afternoon. ?It?s just that I am now reporting to a different leader,? co-CEO Greg Brown. Co-CEO Sanjay Jha heads the second part of the business, which makes mobile phones and set-top boxes.
Seeking startup funding may soon get easier. A group of venture capital firms led by Andreessen Horowitz on March 1 unveiled a Web site www.seriesseed.com designed to streamline the way startups apply for seed funds, cutting the number of documents young companies need to fill out.
The Web site, formed with the help of startup lawyer Ted Wang, contains 30 pages of free documents entrepreneurs can fill out to apply for $300,000 to $1.5 million of initial funding. Typically, such documents run about 100 pages and have to be customized by lawyers. The 30-page term sheet would have to be customized as well, but it would dispense with some sections typically unnecessary for early-stage investments, such as those dealing with prior investors. The idea behind the effort is to ?save start-ups time and money,? Wang tells Bloomberg BusinessWeek. ?The negotiations process will also be shorter.?
Ten well-known venture firms have committed to accepting these so-called Series Seed Documents. They include Charles River Ventures, SV Angel, Polaris Ventures and Andreessen Horowitz, which is an investor into Web-calling company Skype and social games maker Zynga. ?We are committed to making deals on these terms,? says general partner Ben Horowitz.
The venture firms hope others will end up supporting this effort as well. ?I think this will become a new standard, and people will be able to raise money more quickly,? Wang says. Bloomberg LP or one of its subsidiaries is an investor in Andreessen Horowitz. Bloomberg LP also owns BusinessWeek.com.
Based in Chicago ever since it was founded in 1928, Motorola is contemplating a move to California, according to co-CEO Sanjay Jha.
When Motorola splits in two next year, Jha said he may transplant the handset and set-top box units to Silicon Valley. "We'll go where that talent is, and right now, that looks like California," Jha said in an interview with the Wall Street Journal.
This makes a lot of sense: Software acts as the biggest differentiator for cell phones and other gadgets nowadays. And much of that developer talent resides in California. Nokia has established a research presence in Silicon Valley in recent years. So has smartphone software maker Symbian. Apple, Google and Palm are based in California. Last, but not least, Qualcomm, where Jha used to work before joining Motorola, is headquartered in San Diego.
But uprooting Motorola's existing engineering and marketing talent won't be easy. Motorola lost a lot of great employees over the past several years, as it struggled to turn the business around. And it could lose more staffers if Jha decides to go ahead with the move.
Wireless call quality is getting worse, according to a new study. "....reported call quality problems have increased considerably in 2010," according to the Feb. 18 report from J.D. Power & Associates. Out of 100 calls placed, 13 experienced some problems, up from 11 six months ago. In particular, the number of reported dropped calls has increased to six per 100 calls, up from four six months ago.
The cause: Smartphone use is surging, putting strains on networks and resulting in static on lines and dropped calls.
Smartphone users, who pay carriers much more than regular phone subscribers, are actually getting poorer service. An average American pays $50 a month for wireless service, while most smartphone users' bills are 50% to 100% higher. Yet, smartphone users "are nearly three times more likely to experience dropped calls than are traditional mobile phone customers," according to the study.
These problems will plague an increasing number of Americans in the coming months, as wireless carriers have been implementing incentives for more customers to switch to smartphones.
But their networks are already groaning under the extra traffic. AT&T has admitted to network overload problems in New York and San Francisco. Smartphones can surf the Web and stream videos, and typically use up much more wireless network capacity than voice-centric phones.
MetroPCS has hired several advisors to explore a potential purchase of rival Leap. But can this combination work?
The two companies appear to fit well together. They operate in different markets, so a merger would vastly increase the combined company's coverage area (the two already have an agreement that lets one's customers place calls when they are in the rival's territory). They could shave costs by combining certain operations such as billing and customer care. "We believe PCS's board and large shareholders have likely pressured [management] to look at a deal," Jonathan Chaplin, an analyst at Credit Suisse, wrote in a Feb. 12 note. "We also believe the company will investigate both a potential sale and an acquisition."
Let's not forget that Metro and Leap have tried to merge before -- and failed. In 2007, Leap rejected an unsolicited takeover offer from MetroPCS, saying it undervalued the business. That followed a legal tussle over patents. In 2006, Leap had filed a lawsuit saying Metro violated its patents related to offering all-you-can-eat pricing plans. Metro counter-sued, alleging disclosure of trade secrets.
Yet, considering the accelerating competition in the already cutthroat U.S. wireless market, and any pressure the companies' boards and shareholders may be placing on the management for a merger, CEOs Doug Hutcheson and Roger Linquist may need to get past any lingering unresolved tension quickly to make a deal happen.
Real Networks is cutting its Rhapsody music business free to pursue an IPO (just as Arik suggestedin this prescient story many months ago. How does he do it?).
The news of the IPO doesn't fill me with optimism--which is only interesting because I, unlike the vast majority of analysts and industry watchers, have long thought the business had great potential. The change of heart isn't based on any rethinking of the subscription model. One way or another, this will ultimately be the future of music. It's only a matter of time before people realize that there's no reason to buy songs a la carte or put up with annoying ads when you can have listen to whatever you want for a flat monthly fee. Once the price is right on these subscriptions--say, $3 or less per month, buried in your cellphone or broadband bill--hundreds of millions of people will jump on board.
But ultimately could be a long way off, and an independant Rhapsody will have less financial firepower at its disposal to stay in the fight long enough to secure victory. Especially if the quality of the service declines--which in my case, it has. For the last eight months or so, I've been running into a maddening Infinite Loop, so to speak, whereby a problem with the Helix DRM technology in Rhapsody causes it to crash every time I try to use the $140 Sandisk Sansa View portable MP3 player I bought to use with the service last May. I connect the device, and get an error message telling me I need a new version of Rhapsody--but once installed I'm told I need to update my license to play the music transferred to the device. Which leads to the error message requiring the new version of Rhapsody...and so on.
Am I alone in this? If you are a Rhapsody user, let us know whether the quality of your experience has held up. And whether you think news of the IPO was good news or bad news for fans of the service.
Android operating system for smartphones has more than doubled its market share in the U.S. between September and December, according to comScore's survey of more than 30,000 consumers aged 13 and up.
Android's market share rose from 2.5% in September to 5.2% in December, while BlackBerry maker Research In Motion, Microsoft and Palm lost ground in the U.S. smartphones market, according to comScore. Developed by a consortium of companies lead by Google, Android has gained traction thanks to the introduction of a slew of new handsets that run it, including Google Nexus One and the popular Motorola Droid.
But while Motorola's new smartphones enjoyed good traction this fall, that didn't prevent the company from losing more market share in the fourth quarter, as sales of its cheaper phones slowed down further. The world?s largest handset maker, Nokia, lost share as well. The company said recently that it has gained share worldwide, but it?s still having trouble cracking the U.S. market.
Research In Motion, on the other hand, actually gained cell phone market share, as more Americans switched to smartphones and picked up popular handsets like BlackBerry Pearl and Curve, according to comScore. LG gained share as well.
The biggest gainer in handsets, though? Samsung, whose market share expanded from 20.4% of the U.S. market in September to 21.2% in December, according to comScore?s Feb. 8 report. Samsung has continued to come out with highly capable yet inexpensive phones that have been a hit at AT&T, Sprint Nextel and Verizon Wireless. At Verizon, Samsung Omnia, a Windows Mobile-based smartphone, sells for only $10 after an online discount and with a two-year contract. The phone features a 5 Megapixel camera, a touch screen and full Web browser.
Google is taking steps to address customer support problems that cropped up soon after the release of its Nexus One, a phone that Google currently only sells online. On Feb. 8, Google began providing phone support in addition to existing efforts to solve problems through online forums.
Until recently, customers who had problems or questions -- and wanted to talk to a customer service representative -- had to call the phone?s maker, HTC, if their questions concerned the hardware. Or they had to call T-Mobile USA to inquire about service. Now, Google has begun also offering phone support for customers with questions on existing or pending orders, at 888-48-NEXUS (63987). It?s a small but important step toward making consumers comfortable with buying phones online vs. through carriers, as they normally do today.
Shock jock Howard Stern likely gave Sirius XM executives a shock on Feb. 8, when he told his radio listeners that he is considering leaving Sirius to become a judge on 'American Idol' when his lucrative Sirius contract expires at the end of the year.
A few weeks ago, Stern also said he'd been approached by terrestrial radio executives who want him to work for them. Radio giant Clear Channel recently told Bloomberg BusinessWeek it might be interested in hiring Stern.
By disclosing these negotiations, Stern may be trying to up the pressure on Sirius to offer him another lucrative deal. Sirius currently pays Stern, his agent and his staff $100 million a year to air Stern's radio show on Sirius exclusively. But in the years since that contract came into effect, Sirius's growth has slowed. And its renewed focus on financial performance may forbid writing another large check.
So, if he wants to make as much money in the future, Stern may, indeed, have to look elsewhere. 'American Idol' would certainly offer a lot of money -- and tons of exposure.
On Feb. 4, the Symbian Foundation will release the first completely open-sourced version of its mobile phone operating system, a move it hopes will make it easier for developers to improve the software and create applications for use on Symbian-based phones. Starting tomorrow, programmers will be able to download, modify and use the software at no charge. The organization made pieces of its code available earlier.
The release marks the conclusion of the huge effort to turn Symbian, the most commonly used smartphone software, from a proprietary operating system only available to developers at companies like Nokia into an open-sourced one, accessible to programmers around the world. Symbian engineered the move as rival Google made a splash with Android, a rival open-source mobile operating system that's gaining steam. By 2012, Android will surpass Windows Phone and the iPhone to become the world's No. 2 most popular mobile operating system behind Symbian, according to Gartner. As rival software gained market share, support for Symbian began to flag. Symbian hopes the new, open-sourced software will help reverse the slide. "We'll see proliferation of converged devices based on Symbian happen this year," says Larry Berkin, general manager for Symbian in the U.S.
Alas, reality TV has just jumped from the TV and onto your gaming console. On Feb. 2, Sony Computer Entertainment America (SCEA) announced it will debut an original competition reality series, The Tester, on PlayStation Network for free download starting February 18, 2010.
In the series, 11 gamers from across the country will compete "in grueling physical and mental challenges to win a position as a game tester at SCEA and a $5,000 signing bonus, all under the scrutiny of a panel of judges, including actor/comedian and diehard gamer Hal Sparks," according to Sony. The Tester, which was designed by some of the same people who gave us TV reality series Rock of Love and The Surreal Life, will be available for download on PlayStation 3 and PlayStation Portable.
"The Tester will follow contestants over eight episodes as emotions run high, alliances form and they battle with brain and brawn," according to Sony's press release. "While donning giant slingshots, paintball guns, and human hamster balls, contestants will be put to the test in a series of elimination challenges shaped around the skills necessary to be a game tester, including dexterity, communication skills and mental prowess." Cast members range in age from 22 to 36 years old and include a student, a paramedic and a used car salesman. Check out the trailer right here.
The move is a nod to the fact that many gamers play games rather than watch television nowadays. But, like the rest of us, they enjoy reality TV shows -- particularly when those series follow their fellow gamers.
AP - A troublingly high number of U.S. patients who are given angiograms to check for heart disease turn out not to have a significant problem, according to the latest study to suggest Americans get an excess of medical tests.
AP - As they scrambled recently to trace the source of a salmonella outbreak that has sickened hundreds around the country, investigators from the Centers for Disease Control and Prevention successfully used a new tool for the first time — the shopper cards that millions of Americans swipe every time they buy groceries.
AP - Eleven days after her son Benjamin's birth by C-section, Linda Coale awoke in the middle of the night in pain, one leg badly swollen. Just as her doctor returned her phone call asking what to do, she dropped dead from a blood clot.
AP - Brazil's president said Tuesday that he kicked the smoking habit he had for 50 years after a recent health scare sent his blood pressure soaring.
AP - Colleen LaRose spent long days caring for her boyfriend's father in a second-floor apartment in Pennsburg, a small town north of Philadelphia.
AP - Corey Haim, a 1980s teen heartthrob whose career was blighted by drug abuse, has died. He was 38. Haim died early Wednesday at Providence St. Joseph Medical Center in Burbank, Los Angeles County coroner's Lt. Cheryl MacWillie said.
AP - Church abuse scandals in Germany have reached the older brother of Pope Benedict XVI and are creeping ever closer to the pontiff himself.
AP - The crash of a Toyota Prius in New York caught the attention of federal regulators Wednesday after the driver said it accelerated on its own, then lurched down a driveway, across a road and into a stone wall.
AP - Democrats claimed momentum Wednesday in their drive to enact the sweeping health care legislation sought by President Barack Obama, citing near agreement on crucial issues despite persistent Republican efforts to knock them offstride.