...anyone gets excited about a plan by Verizon Wireless to offer access to YouTube on a wireless device. For $15 a month, Verizon is offering a YouTube-like service as part of a service called VCast that will provide a limited number of YouTube videos that have been selected and approved by both companies.
Come on, it's a tough enough sell trying to get people to watch videos on teeny-tiny screens without neutering the world's most popular video sharing service...and asking people to fork out $15 for the privilege. The New York Times has a strange quote from YouTube co-founder Steve Chen, who contends "Everybody carries a phone with them, but they may not have a computer...[so people] can take the phone out of their pocket while waiting for the bus and watch a video."
In theory, that's a nice sentiment but in practice, that's easier said than done. In trying to sell YouTube-lite at a premium price, Verizon clearly wants to manage demand while still getting a sense of whether the service actually works and if there are any bleeding edge suckers out there will be guinea pigs.
Of course, wireless carriers are happy to explore all and any ways to increase average revenue per subscriber (ARPU), which is an acronym for trying to squeeze more money out of existing customers. If YouTube-lite can help boost ARPU, there's no harm in trying to sell it. That said, any consumer who jump at YouTube-lite isn't thinking straight.
After a brief one-week hiatus (did you miss us?), Kevin Restivo and I are back with another Talking Tech podcast. Obviously, the story of the week was the launch of the Nintendo Wii, which had people lining up in the middle of the night outside stores for the "privilege of buying one - a supply-demand phenomena I have a difficult time getting a handle on. Speaking of supply and demand, Google shares cracked through $500, and with people like Jim Cramer frothing at the mouth, is it only a matter of time before $750 starts to loom on the horizon? (Motley Fool has a column looking at whether it's time to buy, sell or hold) Kevin and I also get into the wireless market in the wake of a two-part feature run by the Globe & Mail, which looked at Canada's lucrative market where the players are filling their boots amid a rational pricing environment and limited competition (can anyone oligopoly?). Finally, we touch upon the steady growth in the popularity of podcasts - according to the Pew Internet and American Life Project study more than 17 million people downloaded a podcast in the six months ended Aug. 30, compared with 10 million in the previous six month period. Obviously, Talking Tech must be a factor in this growth...:)...if only!!
Merrill Lynch analyst Vivek Ayra has seen the light about the Blackberry Pearl. Based on strong-than-expected demand for the Pearl, Ayra has bumped up his 12-month target price on RIM to US$165 from US$135. His bullishness is based the imminent launch of a Cingular Pearl; a huge opportunity in Western Europe where smartphone sales are expected to grow 38% a year until 2010; low-cost monthly data plans such as T-Mobile's $19.99 all-you-can-eat package (Boy, it would sure be great to see those kind of deals in Canada but it's unlikely given how our wireless carriers have embraced "disciplined growth"); and the launch of new Pearl "siblings" such as the Indigo and Crimson, which will feature QWERTY keyboards (which is what will make me jump into a Pearl). Speaking of smartphone growth, In-Stat has a new reported that shows unit sales nearly tripled from 2004 to 2005, and jumped by 50% during the first half of 2006. That said, In-Stat analyst Bill Hughes said there is reason for caution. "Many smartphone users continue to carry the very devices that smartphones are meant to replace. Also, users have been slow to add new applications to their devices. Most users have only downloaded a few applications." Tags: RIM, Blackberry, Pearl, Merrill Lynch, In-Stat
My mother is a Luddite. She was having enough problems, for example, trying to use a computer before her son-in-law convinced her to switch over to a Mac so she could iChat with her grandchildren. Imagine my mother's frustration when her mobile phone crapped out on her recently. (Apparently, the phone is broken if you have to shout into it so the person on the other end can hear you) A call to Virgin Canada led to a suggestion she mail in her phone (a cheap, bottom-of-the-line Nokia) and maybe three weeks later, they would send it back. That didn't seem like a good option so she looked up the phone number for one of those Virgin kiosks popping up in malls across the country. Instead of putting the phone in the mail, my mother would just march down to the mall and exchange her broken phone for a new one. Simple, eh? Well, no. It turns out you can't do that so my mother's got two options: put the phone in the mail and hope it comes back some time soon, or buy a new one. That can't be described as good customer service. Where's Richard Branson when you need him?
What does Motorola's purchase of Good Technology mean? Does it suggest the consolidation of the mobile e-mail market is picking up steam? Will HP make a play for Seven Networks now that Good and Intellisync (Nokia) have been snapped up? Does this finally mean Research in Motion will see some real competition after owning the mobile e-market for the past five or six years? And what about the much-vaunted Motorola "Q" that was supposed to sell millions of units this year but appears to have stalled? It would be interesting to see how much Motorola coughed up for Good, which has raised more than $200-million in private equity from investors such as Kleiner Perkins. Canaccord Capital analyst Peter Misek said Good had no choice but to sell because the 470-employee company was "running out of money". For more, check out Blogging Stocks. Tags: Motorola, RIM, mobile e-mail, Kleiner Perkins
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