Posterous theme by Cory Watilo

Apple's Final Cut

There was an interesting story on Slashdot the other day titled Why Google Should Buy the Music Industry, which raised the idea that, rather than continuing to negotiate untenable terms with an indignant group of industry bosses, Google should simply buy all the record labels. The notion put forward was unrealistic. This would never be allowed, but it chimed with some things I'd been mulling over regarding the broader licensing issues within music, movies and TV, and the difficulties companies like Google, Apple, Microsoft and Netflix have had in securing reasonable, sustainable licensing terms.

Apple has over $50 billion in cash, estimated to be nearly $70 billion by end 2011. As far back as 2003, there have been stories about Apple buying a movie or music studio, something that was dismissed out-of-hand by most people. But as Apple's media ecosystem becomes more reliant on securing favourable licensing terms from the studios, maybe this idea has some merit.

It's obvious that Apple and others have been struggling to agree terms with studios in areas around TV show rentals and streaming. But what if Apple changed the game, and bought a single, large studio. If we look at the example of NBC Universal, this is a massive media organisation that controls a large amount of TV, movie and music interests through it's ownerships of Vivendi, Universal Music Group, NBC and more. Should Apple buy NBC Universal, it could see through changes in the conditions and terms of licensing for these materials, not just to themselves, but everyone in the industry. This would enable better pricing, more relaxed distribution models, and would help everyone from Netflix and LoveFILM, through to Apple themselves ensure the prospect of digitial TV and movie distribution palatable to end users. And the cost of making such a move seems to make even more sense.

Towards the end of 2009, Comcast and GE entered into an agreement to part own NBC Universal. At the time, Comcast paid $6.5 billion in cash to take a 51% majority share of the company. Even today, those figures would suggest, should Apple make a move on NBC Universal, their $50 billion cash reserve is more than enough to ensure a deal could happen. 

The article on Slashdot suggested Google buy all the music companies to ensure reasonable licensing terms. But why bother? Just buy one large media organisation, change the game regarding broad, reasonable licensing, and your competitors will have no choice but to follow. It's a similar strategy to the one Apple pursued with the mobile networks; Fight hard, force through a change at one large, globally recognised powerhouse, and the others will have no choice but to get on board, once the success of the venture if proven.

I use NBC Universal as an example, but this scenario could be applied equally to any number of other companies. Steve Jobs' ties with Disney might also provide other potential avenues for takeover discussions. As one of the commenters to the original Slashdot article said, "That's so crazy that it might just work".

Virgin Media Switch

Virgin-media

By this time next week, I'll be switching to Virgin Media as the provider of all my internet, phone and TV services. I used to use Virgin years back, when they were known as Cable & Wireless, but left when I moved to an uncabled area. I was also very happy with the service, but since moving to London, I'd been keen to give them another try. I've been with O2 for several years now, who have been excellent, but the copper lines in my part of south London are pretty crap, so the speeds not been anything special. The big thing that has put me off making the switch is the throttling and traffic shaping that Virgin do. I've decided to give it a go anyway and see how much of an effect these policies have on my daily usage. That, and I managed to snap £130 cashback through Quidco!

The one thing that makes me feel a little more comfortable with using Virgin, inspite of their traffic shaping, is how open they are about it. It's generally accepted that most ISPs do this nowadays, especially in the US. At least Virgin are very clear what and when they will be restricting. I've negated some of their bandwidth throttling by taking their top-end 50MB package, which is excluded from those restrictions, but it'll still be interesting to know whether these policies actually make a big difference to me. You read a lot of stuff online about how awful it is for certain people, but I'm starting to think Americans blow a lot of stuff out of proportion. Here's hoping I'm right!

More dating sites

Following along on the theme of dating sites, here's another, Swoon.co.uk, that launched today. Made by the company behind FriendsReunited, it is a rebranded and relaunched version of FriendsUnited Dating. The site sells itself on being "genuinely unique", offering to help users learn more about themselves and their prospective dates through psychotherapy techniques mastered by life coach Trevor Silvester.

After the 10 minutes it took me just to sign up to the site, I can confidentially say that marketing pitch is totally bull, it's a clone of pretty much every other dating site out there. I would say it's primary selling point is that it's significantly cheaper than a lot of other sites out there. How did I find this out? As soon as you try to do anything, it pretty much throws the "Subscribe now" pitch in your face. Hard to believe that new sites like this are still launching. Disappointing to see.

DoingSomething.co.uk

A friend introduced me to DoingSomething.co.uk today. It's a slightly quirky online dating site for Londoners. Generally this category of site annoys the hell out of me, because they're so blatant in trying to get you to sign up, and often badly designed sites. It's good to see people trying to improve things somewhat, although I'm not quite sure DoingSomething have it right yet. At least I haven't seen a single thing to do with paying overly high subscription fees yet, which is nice!

If you want to give it a try, sign up with the 'great' code to get three months free. Thanks to Hannah for the heads up.