Friday Grab Bag: Does Facebook make no Money on Mobile?


Is a patent war in Google’s future?

No not the one with Apple that it appears to be fighting by proxy but rather one where it uses the patents it will acquire in its Motorola Mobility acquisition. The Guardian puts forward a well reasoned piece that strongly suggests that this is the only way that the company can recoup its $12.5bn investment.

The most recent financial statement from Motorola shows that it will have a negative effect on Google’s results, possibly dropping earnings per share by as much as one third. Google has long stated that one of its goals in the purchase will be the patents, and it seems that since it is already using Motorola as a tool in its on going war with Apple over patents, it now will take it to a new level.

But it is also likely that it will be more aggressive in using the patents overall, possibly to exert more control over Android handset makers and their software. The one company that could be harmed by this approach might be Amazon whose Kindle uses a basic version of Android but with all of the other Google features such as Gmail stripped out so that a user would barely know what OS it is running.


Amazon’s Kindle sales triple in last quarter

Amazon’s revenue grew 35% in its just concluded fourth quarter, reaching $17.4 billion and said that the sales of its Kindle eReaders tripled in the quarter that ended Dec. 31, 2011, but did not disclose the exact number sold.

However the sales growth did not meet analysts’ expectations and the company said that net income dropped significantly, down to $177 million, a 57% decline from the same period a year before. Part of the issue was a huge investment into expanding its sales fulfillment centers, a move it said will help grow the business in the long run.

For the current quarter it is predicting sales of between $12 billion to $13.4 billion and that it could post an operating loss of as much as $200 million to a profit of $100 million

Turner Broadcasting System and Intel Capital invest in iStreamPlanet’s Series A
iStreamPlanet has closed its Series A funding round with both Intel Capital and Turner Broadcasting Systems participating in the round. The amount of funding was not disclosed. iStreamPlanet develops automated video workflow technology.

Turner has already worked with iStreamPlanet in the past on a variety of live sports broadcasts going as far back as the 2010 NASCAR Coca Cola 400 at Daytona Speedway. Other events that iStreamPlanet has helped broadcast include the 2010 Vancouver Olympic Games, NBC Sports’ Sunday Night Football and the Championships at Wimbledon, along with the US Open Golf, Notre Dame College Football, Ryder Cup and the Kentucky Derby.

Aside from automated video workflow technology the company also has multi-screen technology as well as cross platform ad insertion capabilities.

Will BCS move games to campuses in 2014?
That is what is being reported as a possibility by Brett McMurphy over at CBSSports. He said that at least on athletic director has proposed moving many Bowl games onto school’s campuses rater than at the neutral sites where they are played today.

The new cycle of BCS begins in 2014 which is the earliest that the change could most likely occur. One of the driving forces behind the idea is the poor attendance that many of these Bowls and would call for on-campus games after the top 16 games are filled. Also under consideration would be requiring a minimum of seven wins to be bowl eligible.

Facebook revenue absent in the mobile space
As Facebook opens its books in advance of its $5 billion IPO a number of interesting facts have emerged about the company. It has obviously seen very strong growth since its inception and now has $3.7 billion in revenue.

Oddly enough none of this revenue, zero, comes from the mobile users of the social media. With 425 million of its 845 million users accessing the site via a mobile device this is astounding. However it shows that there is huge room for revenue growth for the company.

As reported at Forbes, Facebook said that it is devoting substantial resources to expanding its platform in the mobile space and seeks to create engaging mobile products. The company said that it anticipates mobile users’ rate growth to outpace its overall growth rate.

Feds keep pressure on illegal Super Bowl streamers
For the second year in a row the US Government has cracked down on a number of sites that provide sports streaming and has taken control of their domain names. Users heading to those sites will get a redirect notice from the DOJ/ICE.

Among the sites included are Firstrowsports.tv, Firstrowsports.com and Soccertvlive.net. and as reported by Torrent Freak this is the second time around for the Feds to shut down sports streaming sites just prior to the Super Bowl, although some sites are already back up under slightly different incarnations.

The shutdown struck at least 307 domain names and the effort was called ‘Operation Fake Sweep’ with the bulk of the sites charged with selling fake NFL merchandise and only 16 for illegally streaming sports video.

AMD to enter tablet and Ultrabook space
AMD introduced analysts at its annual meeting to its newest processor roadmap that will include a pair of low powered chips that will target the tablet space and showed an Ultrabook design that looks to undercut Intel’s offerings in hat space.

According to EETimes coverage of the event AMD has added Hondo, a 40 nm processor for tablets due this year and plans to follow up with Temash, a 28 nm chip next year. The company has been slow to enter this space but its rivals here are more from ARM-based chips and the OMAP processors from Texas Instruments, Intel has been slow to make headway in this area as well.

AMD showed an Ultrabook that was developed by Taiwanese company Compal using AMD’s Trinity chip in a thin an ultrabook reference design made by Taiwan’s Compal. It said that the computer could have a $599 price tag, possibly starting a price war with developers using Intel’s developers ultrabooks.

NFL Stars Steven Jackson, Stevie Johnson Will ‘Hang Out’ On PlayUp for Super Bowl

Fan-interaction app PlayUp has recruited NFL stars Steven Jackson and Stevie Johnson to “hang out” during Sunday’s Super Bowl, when fans can message and follow the stars’ take on the big game between the New England Patriots and the New York Giants.

Rams running back Jackson, owner of seven straight 1,000-yard seasons, can be found Sunday on PlayUp under the username “sj39,” while Buffalo’s electric reciever Johnson can be found under the username “StevieJohnson13.” According to PlayUp, both players will create their own public virtual rooms in the PlayUp app to chat with fans, and will also visit other public virtual rooms to further interact with fans using PlayUp to chat, talk and share smack about the game.

“We are thrilled that both stars are choosing PlayUp to engage with passionate football fans over the Super Bowl,” said Dennis Lee, PlayUp USA CEO, in a statement. According to PlayUp, both players are already active in other social media forums: Jackson has more than 138,000 Twitter followers and almost 48,000 Facebook fans, while Johnson currently has more than 78,800 Twitter followers and 17,400 Facebook fans, according to PlayUp.

Who’s Going to Get the Tablet Rights for NFL Games?

We all know by now that the Super Bowl is going to be streamed live by NBC, and also to Verizon Wireless smartphones via Verizon’s NFL Mobile app. It will be interesting to see what the viewer metrics are after the fact. But the bigger item on the horizon is who will snag the tablet, aka iPad rights for NFL broadcasts going forward?

I was thinking about this potential conflict earlier today when I read a report from my ex-GigaOM collegue Liz Gannes who was covering a talk with ESPN president John Skipper at the D: Dive Into Media conference. Skipper’s crew seems like it has clear vision on what the Worldwide Leader needs to do with mobile, which as we heard yesterday is the prime platform ESPN develops for.

Inside the industry ESPN is unique since it not only is a network, it is also a content creator as well as a clearinghouse for overall information. The latter is mainly SportsCenter, its enormously popular highlights show that dominates the sports world. But more recently ESPN has become a content creator/provider by bidding for broadcast rights to games themselves, across all major sports and a lot of minor ones too.

While finding broadcasts on TV is fairly easy — you just look up to see which network is broadcasting the game — on digital devices the access has been murky. Verizon does have an exclusive deal to show live games on phones, but that’s only covered Monday Night Football, Thursday night NFL Network games and the Sunday NBC games. ESPN, meanwhile, retains MNF rights for tablets but won’t show the games on phones because of Verizon’s deal. DirecTV Sunday Ticket customers this year could opt for a package that gave them access to the Sunday Ticket via mobile — an interesting twist but as a subset of a subset not really a mass-market solution.

The big question still out there is who will get tablet rights for NFL broadcasts going forward? Right now Verizon can’t offer NFL Mobile on an iPad, which would seem to be a bit of a no-brainer except it isn’t. The tablet market, aka iPad, is getting bigger every moment and it will be interesting to see how the tablet rights get broken out, or whether they are bundled into the overall broadcast rights for a hefty increase in fees. According to Liz’s report, ESPN won’t buy rights without all platforms included:

Since 2005, ESPN has made sure that all its content deals include rights for every device. As Skipper put it, “We don’t cannibalize ourself, we use those platforms to cross-promote.”

After several digital stops and starts ESPN seems to have crystalized its mobile thinking behind the WatchESPN idea, where you download an app and have access to all ESPN programming — so long as you also have a contract with a qualifying cable provider. This is a smart move because it keeps the people paying ESPN the big bucks happy, while giving the cable customers the kind of access that is commonplace for all other kinds of media.

Maybe sometime in the future ESPN will offer a non-cable-customer price to access all its content digitally, but for now it seems content to keep its window open only to those customers willing to pay.

Here’s the link to Liz’s story again. Good stuff, wish I was at that conference.

Pre Play Sports Scores Subway Sponsor Deal for Super Bowl

Screen grab of a typical Pre Play app, where you predict the play before it happens.

In a field that’s going to become extremely competitive, predictive-gaming startup PrePlay announced a sponsorship deal with sandwich giant Subway, just in time for this Sunday’s Super Bowl.

If you’re not familiar with predictive gaming, don’t feel alone. It’s a new category of apps that allow smartphone or tablet users to challenge each other in trying to predict play-by-play outcomes of sporting events as they are happening live. MSR identified several of the players in the space last year, but with Subway sponsor dollars in its pocket Pre Play has clearly done something to attract attention. Even so, the company is using the Subway deal to “re-launch” its app, usually a sign that the initial iteration didn’t quite catch on.

The iOS-only Pre Play app can be freely downloaded from iTunes. Then you assemble a group of friends or family members with Apple devices and can compete to see who can better predict plays before they happen, earning points in the process for correct calls.

To perhaps better explain how it all works, here’s a Pre Play demo video. Maybe this is better than me screaming “FAKE! FAKE!” at the TV screen on every field-goal attempt. At least my neighbors might be happier.

Super Cellular Battle II: AT&T, T-Mobile Beef Up Indy Coverage; But What About Twitter?

If your call, text or tweet doesn’t get through from the Super Bowl in Indianapolis, you probably won’t be able to blame the phone companies. Today AT&T and T-Mobile joined Verizon Wireless and Sprint in announcing special plans to increase wireless capacity for the Feb. 5 showdown between New England and New York, which is expected to attract enough folks to completely fill the 70,000-seat Lucas Oil Stadium.

From the info provided so far it looks like AT&T has done the most in terms of bringing wireless resources to the Indy table: According to the press release AT&T is not only expanding the DAS antenna coverage inside the arena, it is also firing up a public Wi-Fi hot zone in the adjacent neighborhood, while also adding some outside DAS deployments as well as driving nine COWs (cell towers on wheels) in for the party. Indy is also one of the select cities where AT&T has launched its new 4G LTE network, so it’s a good guess that the infrastructure there is new and ready to rock. Safe to say, AT&T probably isn’t going to experience a SXSW style cellular fail at the Super Bowl this year.

T-Mobile, the nation’s fourth largest wireless provider, had sort of a me-too feel to its announcement but things like free charging stations (at the T-Mobile store that is near the stadium) and a T-Mobile sponsored relaxation zone with couches and hot beverages might come in handy if you are in the area. T-Mobile says it has also beefed up backhaul inside the stadium and throughout Indianapolis in general, so if you are a T-Mobile customer you should be OK come game day.

Still unanswered is the question of whether or not popular Internet sites like Twitter are making similar infrastructure preparations for the expected surge in traffic. We still haven’t seen any explanation or mea culpas from Twitter in regards to Sunday’s multiple fail whale appearances, other than a small status report that says everything got fixed. As Jim Rome says, better head to Fry’s, guys, and beef up that server farm.

Awesome day for the NFL, terrible day for Twitter. Better hit up Fry’s for a server or two before the Super Bowl.

@jimrome

Jim Rome

Super Cellular Battle: Verizon Adds DAS, Sprint Calls on the COWs

Portable cellular tower on light truck -- aka a "COLT." Credit: Verizon Wireless

In addition to the football game, there’s a cellular supremacy battle going on in advance of the NFL’s Super Bowl on Feb. 5, as wireless providers are bringing in extra technology to make sure all their customers’ calls go through on the big day in Indianapolis.

The cellular conundrum facing sporting events is old hat to readers of Mobile Sports Report, who know about the bandwidth challenges when 70,000 of your closest friends show up on Sunday and all try to post to Facebook at the same time. For the Super Bowl in Indy’s Lucas Oil Stadium Verizon Wireless has the inside lead, by installing a Distributed Antenna System (DAS), basically a bunch of small cellular antennas hung inside the building to provide better reception. AT&T put a DAS in the Superdome ahead of the BCS championship, and has put DAS installs in other stadiums like Cowboys Stadium in Dallas.

There’s an excellent walk-through with geek-heavy pictures about the Verizon updates in this post by theGadgets blog, which apparently is local to the Hoosier locale. Verizon is also installing public Wi-Fi networks inside both the stadium and the nearby convention center, and will improve outside coverage by bringing in COWs, aka Cell towers On Wheels — mobile antennas that beef up coverage. Verizon notes that Indianapolis is one of its 4G LTE coverage areas, so customers with access to Verizon’s newer faster network will have 4G access at the game, all the better to watch the mobile stream of the Super Bowl via the NFL Mobile app, only available from Verizon.

Also calling in the COWs is competitor Sprint Nextel, which according to a press release out today will drive in two COWs for the stadium, two at the Super Bowl village and one more at the University of Indianapolis (the NFC practice facility). Sprint also says it has “added capacity to 21 CDMA [3G wireless] sites and seven iDEN [push to talk] sites around downtown and surrounding area hotels, including a major capacity upgrade inside the stadium.”

We are still waiting for an official AT&T response but you can bet Ma Bell will also be beefing up its cellular arsenal in advance of the Feb. 5 game day. All good news for connected fans who want to stay linked while they’re at the big game.