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  • Sony Ericsson cuts jobs as demand falls for its smartphones

    Plummeting demand for its high-end smartphones and inflation eroding margins for inexpensive mobile phones leads to job cuts

    The world’s fifth-placed handset maker is to shed 2,000 jobs as the company reports a Q2 operating loss of US$3.17 million.
    Sony Ericsson a drop in net income from US$347.6 million a year ago to US$9.48 million, while sales slumped 9.4 per cent to US$4.4 billion.

    Unit sales in the quarter reached 24.4 million, down from 24.9 million units a year ago.
    The closely watched average selling price per unit was US$183. A year ago, Sony Ericsson’s average price per unit was US$197.50.

    The joint venture between Sony and Ericsson AB also forecast further bad news in the third quarter.
    “Challenging market conditions are expected to prevail this quarter,” the company said in a statement.

    Sony Ericsson said the 2,000 job cuts among the company’s 11,900 employees will save US$474 million annually.
    The July 18 results marked the second consecutive quarter that Sony Ericsson has issued a profit warning before issuing quarterly results.

    A little more than a year ago, Sony Ericsson was the number four handset maker, pushing Motorola for the number 3 spot.
    Since then, however, the company has fallen to fifth while LG Electronics has taken over the fourth spot.

    Dick Komiyama, CEO of Sony Ericsson, said: “We are aligning our operations and resources worldwide to meet an increasingly competitive business environment and to help restore our capability for profitable growth.”

    Sony Ericsson is the second of the world’s handset makers to announce its quarterly results since research firm Gartner slashed its forecast for the mobile phone market to between 10 per cent and 11 per cent growth from a May estimate of 10 per cent and 15 per cent.
    In 2007, mobile phone growth margins were 16 per cent.

    Finnish mobile phone maker Nokia issued second quarter results earlier this week that were in line with analyst predictions.
    LG Electronics will announce its second quarter results on July 21, followed by Samsung on July 25 and Motorola on July 31.

  • New head to take BBC HD mainstream

    The UK’s BBC has named a new controller of its HD channel briefed with attracting more viewers and increasing content

    Danielle Nagler has been named as the new head of BBC HD replacing Seetha Kumar who is moving to a new senior role within the corporation.

    Kumar, who has led the channel since its trial stages, will move to another, as yet to be announced, “senior role” in the corporation.

    A BBC statement said Nagler’s priorities are to “focus on growing the channel by driving consumer take-up, working with in-house and independent producers to increase HD programming, and leading preparations for BBC HD’s launch on Freeview”.

    Speaking after her appointment was announced, Nagler said it was a “critical time” for the channel and the technology – and for people making programmes.
    She said it was up to the BBC to help both audiences and the wider industry make the transition to HD.

    “At the moment there are 10m HD-ready sets in the UK but only a minority are actually used for HD viewing.
    “It’s clear there’s lots of work to do to open up the enormous viewing potential HD can offer for audiences.
    “BBC HD tries to offer viewers the best of the BBC’s HD programmes, so I’ve got the fantastic job of cherry-picking from all the BBC channels to create the best possible showcase for HD content.”

    Although far from the finished product, the BBC HD channel, the UK’s first free-to-air HD channel, continues to build both audience and approval ratings.
    It will also take a place on the digital terrestrial network from the autumn of 2009; DVB-T2 tests have already commenced by the BBC in Guildford.

    Nagler, who most recently worked as head of the director general’s office, joined the BBC in 1996 as a journalism trainee.

    She will report to Simon Nelson, controller of multiplatform and portfolio, who said: “HD is a central part of our broadcasting future with huge potential to grow on cable, satellite and in the future on Freeview.
    “I’m confident that in Danielle’s hands, the channel will make the transition to become a mainstream choice for our audiences.”

    Nagler will take up her position on July 21.

  • New Zealand warms to HDTV

    Sports mad Kiwis quick to sign up for new Freeview HD service

    Just three months after going live in New Zealand, the free-to-air digital television and radio service Freeview has reported an impressive response to its new high def offering.

    Since its launch in April, 7,594 HD enabled homes have taken the Freeview HD service
    Steve Browning, Freeview’s general manager, admitted that he hadn’t expected uptake to be “quite this fast”.

    He said plans were already in place to produce a Freeview PVR.
    “And with the recent launch of Sony BRAVIA V and W series digital TVs with Freeview HD built in we are seeing the different options available to access free digital TV growing,” he said.

    In general terms, a total of 123,903 receivers had been sold by the end of June, which roughly equates to 8 per cent of New Zealand homes having access to the service.

    Freeview are fully expecting adoption to increase further when the Olympics kick off, with the service offering “24/7 coverage” in HD.

  • HD coverage lures anglers

    Soaring ratings for high definition fishing programmes leads Outdoor Channel to add to schedule

    To those not converted to fishing, just the prospect of watching the sport on TV – let alone in high def – would be enough to have them rushing for the remote control.

    Yet for converts – and there are millions out there – fishing programmes in HD are a huge draw.
    The Outdoor Channel, which claims to be America’s leader in outdoor TV, has announced that ratings for the network’s Friday night fishing block increased 77 per cent over the first half of 2008.

    The bulk of programming found in this segment is shot and aired in high-def.
    It includes shows such as Ultimate Match Fishing, Legends of Rod and Reel and In-Fisherman Television.

    Spurred on by its angling success, the channel will be adding in The Catch: Costa Rica and Fly Fishing the World – both captured in high definition – in Q3.

  • Ad targetting to US teens expected to boom

    Smartphone ownership among American teens will mushroom beyond current 20 per cent – presenting massive opportunities for ad targetting

    Research shows that American teenagers have at their disposal an estimated US$200 billion annually in discretionary spending.
    The marketing agency Fuse recently interviewed execs from companies like Sony, MTV Networks, Yahoo and Nokia to get their take on what the future of technology will look like for the teen market.

    Among the conclusions was that the mobile phone in the US will supplant the PC in terms of popularity for teenagers.
    While currently only 20 per cent of US youngsters own a smartphone, both mobile and content companies are certain this rate will rise dramatically.

    Bill Carter, a partner at Fuse, presenting his findings at this year’s YPulse Mashup convention in San Fransisco, said smartphones like the iPhone are just the beginning for multi-functional devices.
    “Uses of mobile devices will expand to include all kinds of bar code applications and prepaid debit card payment methods,” he said.

    This prediction is a large part of the reason why geographic ad targeting to teens is expected to increase dramatically in coming years.

    Currently, providers analyse about 4 billion Protocol addresses to provide what is called street-level targeting to consumers.

    Companies can then reach teens directly via their phone with ads and info on nearby places to go like nightspots.

    “When you combine this new technology with teens giving their permission to market to them, the growth could be exponential,” said Carter.

    He predicts that teens will end up buying subscription based music services, a lot like the cable TV model.

    Carter also feels that other tech platforms will actually save not kill TV networks.
    The analog-to-digital conversion will allow teens to watch live TV on their smartphones.
    This will then in turn help the TV networks to target their programming to specific audiences, which will maintain the cost of advertising.
    What it boils down to is “the device is inconsequential compared to the content,” he said.

  • New chip will lead to cheaper Blu-ray players

    NEC promises chip will increase functionality of Blu-ray players while driving down prices

    NEC is banking on the world’s first chip that combines signal processors with memory that controls graphics, audio and other functions to double its sales of Blu-ray hardware in the next two years.

    The company expects the EMMA3PF chip to raise its revenue from Blu-ray products to US$378 million in the year ending March 2011.

    NEC plans to increase its share of Blu-ray products by offering deep price cuts, which other companies have started and are necessary for the market to grow.

    It hopes to challenge rivals such as Panasonic, Broadcom and Sigma and capture 40 per cent of the market by March 2009. Market share is predicted to rise to half in March 2011.

    Shigeo Niitsu, associate vice president of NEC Electronics, said they had “gained an edge” over competitors with the new chip.
    “We will do what it takes to keep pace with market price falls of 30 per cent to 40 per cent to keep our lead,” he said.
    The chips will start sample shipments in September – we would like to hear your views on whether they really will drive Blu-ray player prices down.

  • "Iconic" new smartphone models will entice buyers

    Launch of latest smartphones by Apple, RIM, Nokia and Samsung will ensure handset markets enjoy strong end to 2008

    Some impressive mobile phone product launches between now and the year-end will help the world’s mobile handset markets finish 2008 with strong sales, according to ABI Research.

    Spurred on by the launch of Apple’s second-generation iPhone, rival handset vendors such as RIM, Nokia and Samsung are also expected to debut new models in the second half of 2008.

    Kevin Burden, director of ABI Research, said such “iconic” models generate a lot of interest around the handset industry and get consumers thinking about replacement.
    “2008 should still be a very good year for the global mobile phone market,” he said.
    “While Q2 performance figures are still preliminary until finalised at the end of July, early indications do not point to an aggressively weak quarter.

    “Historically, the second half of the year has always outperformed the first, and despite nearly global economic problems, a second half lift is still expected, although likely lower than the near 20 per cent increase the worldwide market has seen in recent years.”

    Burden said that greater simplicity in handset design had been a powerful driver in new adoption over the last two years.
    He said a lot of advanced technologies and applications hade been built into phones but there had often been technical or ease-of-use barriers that prevented wide adoption.

    “The trend now is about making better use of what we have rather than introducing a flood of new services and network features,” he said.
    “That’s going to go a long way towards ensuring users’ acceptance of new phones and new applications.”

    Burden was speaking after the release of the latest update to ABI Research’s Mobile Device Market Share Analysis and Forecasts.
    It reports that many usability issues will also be progressively worked out as the industry increasingly moves towards standardised operating systems.

    Proprietary real-time operating systems can be painful to manage for operators as well as for users.
    Open operating systems will continue to migrate down phone vendors’ product lines, increasing the penetration of devices using standardised and predictable platforms and boosting overall ease of use.

  • Sony adds HD downloads to PS3

    High Definition choice on game consoles boosted as Sony launches an HD movie download service for the Play Station 3 in the US

    Sony has signed up the major studios, including Fox, Disney and Warner, to offer HD movies on its US download service.
    The downloads can be transferred from the console to the Play Station Portable handheld device.

    This latest development follows Microsoft’s announcement that it will add a NetFlix movie streaming service to its XBox 360 video game console.

    While the NetFlix service will not include high-def movies, Microsoft does offer HD TV shows and movies on its XBox Live (link to other story) service.

    The rivalry between the console makers is good news for consumers.

    Microsoft has said it will triple the storage capacity of the Xbox 360 and sell the consoles with 60-gigabytes of storage starting in early August in the US and Canada.

    Meanwhile Sony is to introduce an 80GB Play Station 3 for US$399 in September.

    Jack Tretton, president of Sony Computer Entertainment, said the new 80Gb console was “perfectly suited for high-definition downloads of games, movies and more”.

    However, the new movie download service does not permit viewers to purchase HD programmes.
    PS3 owners can rent movies in HD, but they can only purchase them in standard-def.

    The HD-rental only policy is understood to have been the decision of the Hollywood studios, perhaps fuelled by the concern that PS3 owners could illegally copy and sell the high-def movies.

  • "Best way to buy a Blu-ray player" isn't getting cheaper

    Sony resists PS3 price cut despite rival Xbox 360 dropping by US$50


    Sony’s Play Station 3, with its integrated Blu-ray disc (BD) player, has given many millions of consumers their first taste of the high definition format.

    But hopes that the makers of the US$399 video game console would give Blu-ray a further boost have been dashed by Sony chairman Howard Stringer.
    Prices of stand-alone BD devices are widely regarded as remaining too high to persuade many viewers to ditch their DVD players.

    The Sony chief claims Microsoft’s decision to cut the price of its Xbox 360 by US$50 is evidence that it’s falling behind the PS3 in overall sales.

    Microsoft has no intention of adding a Blu-ray drive to the Xbox. David Gosen, the company’s vice president of strategic marketing for Europe, said they weren’t looking towards Blu-ray as a long-term format.
    Instead Microsoft will concentrate on distributing media through its Netflix rental service in the US, which should also be pushed into Europe in due course.

    However, after trailing Microsoft’s console in 2007, sales data from the NPD Group show that PS3’s US sales have surpassed the XBox for the first five months of this year, although both consoles still trail Nintendo’s Wii.
    The Wii had sales of 2.8 million units during the five months through to May, according to the NPD Group. Sony sold 1.2 million PS3 consoles and Microsoft sold 1.12 million Xbox 360s.

    New exclusive games, such as Metal Gear Solid 4, and the rise of Sony’s Blu-ray as the dominant high-definition DVD player have been instrumental in giving PS3 its lead.

    Stringer said: “We’re selling a lot of PlayStation 3s now and it’s still the best way to buy a Blu-ray player.’”
    But speaking after reports that Microsoft was cutting the price of its 20-gigabyte Xbox 360 from US$349 to US$299 while supplies last, he said: “We’re not considering lowering the price.
    “We don’t have to be nervous about what Xbox 360 does. We’re in fine shape.”

    As well as a price drop, Microsoft have just announced that Universal, and NBC Universal programming, is coming to Xbox Live, delivering The Office, Monk, Battlestar Galactica, The Mummy, Bourne Supremacy and others to the service.
    Xbox Live Video Marketplace now claims over 10,000 movies and TV shows on the marketplace, which it says puts it as the number one HD provider.
    MGM and Constantin are pushing things forward in Europe, having just added 700 new titles to the library.

  • Blu-ray disc prices could fall in line with DVD

    Warner Brothers is to reduce cost of Blu-ray movies in a development that could see discs being sold for the same price as DVDs

    Warner Home Video is to launch aggressive pricing initiatives for the fourth quarter of 2008, including its most comprehensive Blu-ray Disc promotion yet.

    From September and continuing into the first-quarter of 2009, Warner will offer a Blu-ray point-of-sale rebate programme in which retailers will be able to order participating catalogue titles for around US$11.

    Among the featured titles are The Fugitive, Enter the Dragon, Clockwork Orange, The Shining, The Aviator, Road Warrior and Swordfish.

    The strategy could result in Blu-ray discs at retail being on a par with current DVD prices.

    Even including a retail mark-up, the price paid by consumers should be significantly less than the titles’ current average of US$20 to US$25 retail price at outlets such as Amazon.com and Best Buy.

    The scheme will work by allowing retailers to buy the titles at their present pricing but obtain rebate money back upon the sale of each unit, reducing the cost to around US$11 for retailers.