For the benefit of those that might not have been watching. Amazon and Macmillan got into a pricing dispute over eBook sales. Part of the trigger being that Macmillan cut an agency deal with Apple for the iPad platform that has a variable rate that is higher than Amazon’s pricing. It got so heated that at one point Amazon disabled purchasing of the entire suite of that publishers books.

Why do we care?

Well primarily because it might change the landscape for eBooks. But my gut says this will not play out like either party thinks.

Whose right?

Well neither. Remember this is at its core a contract dispute. So you have two parties haggling over price and terms. But one author did have an interest viewpoint –

If Amazon were a smaller retailer, this probably wouldn’t be a big deal. But Amazon pretty much, right now, has a monopoly on online bookselling. They’re huge. As a result, this becomes nearly a form of de facto price fixing.

source.

Which if not in word, at least in deed is probably the case at this point and time.

Is one price for a book wrong?

Well no. But if you think of a free market, single cost pricing may be efficient for the offerer but it forces a self selection from the buyer to only consider catalog items that have an intrinsic value more than the offer price. So ‘Gone with the Wind’ would sell well, but ‘Attack of the NanoAtomic Vampire’ from an unknown author would not.

So what’s the moral here?

Its all theatre. Here is why. There is no determined pricing for ePub books. Its all new. The book publishers want to set an expectation in the ~ $20 range, right below a mid-successful hard cover release. They want to protect their legacy infrastructure when for all purposes it is toast. To me that is as bad as Amazon trying to fix a one price strategy.

The reality is the following — ePub pricing will be determined on authorship, topic and audience. It will no longer have a printing component determining the floor price of the publication. That is what both parties are trying to avoid and they don’t want you to think that it might be possible to buy ‘Linear Algebra II’ from Knopf, Knuth and Rupert for $4.99. But that is entirely possible even with today’s technology.

ePub platforms are crude compared to what they will be like in say 5 years. Authors will be able to set their pricing, eliminate the Macmillan’s of the world, and sell pulp copies if need be through a supplier like Lulu.

That ladies and gentlemen is what the dust up is about. They don’t want you to know that very shortly there could be a door number 3 to choose from for all your reading.

Which in this case means that if Google wants to deliver it, and you want to use it, Google WILL find a way to do so. Even if the device mfr says NO! Well in this case its AT&T/Apple saying no to a Google Voice app on the iPhone.

Now I understand why AT&T did not want it, it hurts their voice traffic income. But do both of these partners realize the semi truck load of a mistake they just made? Had Google followed their original plan they would have locked the Google Voice into the app space of the iPhone architecture. Doing so would have meant Google duplicating that for any subsequent smart phone with the attendant hassles and costs of handling multiple variants of software. Now?

Now Google has turned the software and the iPhone into a VoIP TERMINAL. Unleashed from the underlying architecture Google Voice can now live on any device capable of handling HTML5. Any smart phone, MID, Nettop, Netbook, you name it. That single denial has unleashed a monster, at least for a Telco.

Very dumb AT&T.

Linky.

Yawn? Surely you jest. Oh I know that multihead conferencing has been around. Most of it corporate using dedicated circuits and equipment. Or public services like WebEx. But what makes VuRoom is that is does not require a lot of specific gear. If your PC can run the latest version of Skype it can run VuRoom.

SUNNYVALE, Calif.–(BUSINESS WIRE)–ViVu, Inc. (www.vivu.tv), an emerging leader in creating innovative and easy-to-use solutions for live video participation, today released VuRoom – a ViVu-powered plug-in for Skype, the popular software that enables the world’s conversations. VuRoom is built on the Skype platform to provide customers with instant multi-user video conferencing – an exciting new breakthrough previously unavailable to Skype users. Along with its presentation and desktop sharing functionalities, VuRoom is designed to help remote business users collaborate in real-time, while also saving valuable time and money.

“Having experienced the technology, I believe that ViVu is well positioned to deliver on the video collaboration needs of SMB and enterprise customers. In particular, I see strong potential for ViVu’s new Skype plug-in.”

“Our recent research studies predict a big year for global growth in the web conferencing market,” said Krithi Rao, an analyst in the Information & Communication Technologies Practice at Frost & Sullivan. “Now more than ever, enterprises are looking for cost-effective communication and collaboration solutions to help them succeed.”

Demo here.

Now why the tither Dog? The price. The problem with most of the other services is they run $30-40/month. That can run into some serious coin on a 10 person team every month. This is running $10/seat. A fourth the price. At that price point if using the software for the entire team replaced but one airline ticket a month it paid for itself and then some.

The fact that it is on Skype provides for a very ubiquitous platform. One could add external input sources as needed into the video conversations with little cost or set up charges. The real question is does it last in its current biz plan form. Skype with there latest release now provide P2P video on the three major OS platforms. That is probably 60% of all the Skype usage out there. Couple that with some geek will pull this off as a freebie somewhere as well. Time will tell.

But while it lasts VuRoom lowers the bar on multihead video.

Linky.

I have used Visio for years. First when it was and independent and afterwards when Microsoft bought them out. In the Corporate world it is THE graphics package. Visio is so dominate that there is little competition. You have to go to the Mac space to find viable alternatives.

Well that changes now —

Cacoo - Real-time Collaborative Diagramming & Design from Nulab Inc. on Vimeo.

Issues? I had only one. My base system runs 64bit Ubuntu and the flash player I am forced to use is an experimental v.11 code. Does not work. But a 32 bit Ubuntu with flash does.

But is it a Visio killer? Out of the box no. There are features that this Cacoo do not even touch. For example diagram packs for Cisco gear right down to the card that can go in the frames. Not there yet. But, from small beginnings competitors are made. This online tool is sufficient for most small businesses. It is perfect for any individual. That’s the rub for Visio too. Once someone buys into a base package the customer is more inclined to buy add-ons and upgrades. Now that might get short circuited.

Would highly recommend folks give them a try.
website: http://cacoo.com/

Kurzweil, is there anything this guy can’t do? His book the Singularity is Near has spawned a whole new way of thinking about the future. He is a prolific inventor past and present. So what’s he go an do? Well remedy the bland existence of eReaders that’s what! —

One of Blio’s major advantages over current e-book readers is that the software offers a full color experience. E Ink, which is the black-and-white display used currently in almost all e-readers, works best for text, and even then most e-books still look ugly, thanks to design limitations in the readers.

Blio actually lays out the “pages” as they would be seen on paper, with typography and illustrations copied across. It also supports video and animation. In some ways, it’s reminiscent of the interactive magazine applications (also meant for upcoming tablet devices) shown off by the likes of Time Warner, Popular Science publisher Bonnier and Wired’s parent company Conde Nast.

Add to that some nifty features such as text-to-speech and the ability to synchronize things (like bookmarks, highlights and the page you last read) across multiple devices, and it makes for an interesting e-reader.

“We can take a PDF and an audio book and merge the two to get a combination such that you can hear the audio book and see the words highlighted on the PDF at the same time,” says Peter Chapman, an executive at Kurzweil Technologies.

For publishers, says Kurzweil the advantage is that Blio preserves the original book’s format, including typsetting, layout, fonts and pagination.

Wired goes on to mention stiff competition, etc. My guess is maybe not. First this has the attributes that most any student or researcher keeps in the stachel — marker, highlighter, sticky notes, etc. Then it supports color. Of course that’s more a hardware restriction than anything. But still color will probably be what separates the have nots from the haves in the ebook market very quickly once power issues are corralled.

What’s not to like? Well format for one. Got too many right now. Many non-Amazon systems were starting to gravitate around the ePub format. This will delay that for awhile.

Now the hardware makers need to step up. The merge of tablet and eReader will continue. Somebody will come out with a 8.5×11 formatted screen and the rest will be history. Whoever does it will have the same impact that IBM did when they introduced their laptop line oh so many years ago.

Linky.

Time was when the Walmart steam roller cam to town, it flattened all but the mast capable competitors with the promise of low price and selection. As it turns out, often Walmart offers neither with small selection and higher prices  one local competition is crushed. If Walmart has a weakness, it’s in the online channel and that where Amazon continues to thrive. With Wallyworld making a firm commitment to dominate online, and Amazon continuing to grow, we’re likely to see a serious price war for some time to come. Since Amazon firmly believes in the long tail of a broad and deep selection, Walmart may even need to grow its product mix to stay the game.

In what is emerging as one of the main story lines of the 2009 post-recession shopping season, the two heavyweight retailers are waging an online price war that is spreading through product areas like books, movies, toys and electronics.

The tussle began last month as a relatively trivial but highly public back-and-forth over which company had the lowest prices on the most anticipated new books and DVDs this fall. By last week, it had spread to select video game consoles, mobile phones, even to the humble Easy-Bake Oven, a 45-year-old toy from Hasbro that usually heats up small cakes, not tensions between billion-dollar corporations.

Last Wednesday, Wal-Mart dropped the price of the oven to $17, from $28, as part of its “Black Friday” deals. Later the same day, Amazon cut its price, which had also been $28, to $18.

“It’s not about the prices of books and movies anymore. There is a bigger battle being fought,” said Fiona Dias, executive vice president at GSI Commerce, which manages the Web sites of large retailers. “The price-sniping by Wal-Mart is part of a greater strategic plan. They are just not going to cede their business to Amazon.” (New York Times)

Sony is setting up a download store. Did the media division of this so called tech company wake up from a 10 year sleep with a case of iTunes envy? I don’t think so. Rather, I think it’s finally seen the light. Distribution via physical media isn’t dead, but it’s becoming a niche market that will not support a behemoth like Sony. With the online market open to all, why let the likes of Apple take the lions share of the retail spend when you can set up shop and sell directly to the consumer?   With more in its hardware universe than iPond and Macs,  Sony’s built in “captive device” market is larger, but Sony could show real wisdom by being device independent. That leaves Sony’s biggest obstacle in how late it’s come to market, but late is better than never.

Sony Corp. aims to launch next year a new online service that will allow people to download content such as music and movies to their televisions and other electronic gadgets, a top executive said Friday.

The move is part of chief executive Howard Stringer’s goal of converging Sony’s strengths in electronics, such as Bravia televisions and PlayStation game consoles, and content generated by its movie studio and music label.

“This is something I’d like to get off the ground as quickly as possible,” said Sony executive vice president Kazuo Hirai, who also heads the company’s game division.

The company aims to get the service up and running in 2010 “and earlier in the year would be obviously a lot more preferable in my mind”, he said. (Yahoo)

As long as there have been marketplaces, they have served as a channel for the trade of both legitimately acquired and illicit goods.  With changes in public’s buying habits along with the deepening recession cutting into brick and mortar profits, why not blame Ebay for playing the role of fence for stolen goods. While you’re at it, big retail, why not include Amazon, Overstock, Craigs List and any number of  other online marketplaces that allow anyone to sell goods to others. Even in the unlikely event you close down person to person sales on the Internet you’ll still have flea markets, garage sales and classified ad tabloids around to blame for your inability to cope with the bad economy and change.

“Thieves often tell the same disturbing story: they begin legitimately selling product on eBay and then become hooked by its addictive qualities, the anonymity it provides and the ease with which they gain exposure to millions of customers. When they run out of legitimate merchandise, they begin to steal intermittently, many times for the first time in their life, so they can continue selling online. The thefts then begin to spiral out of control and before they know it they quit their jobs, are recruiting accomplices and are crossing states lines to steal, all so they can support and perpetuate their online selling habit.”

Uh huh. Only problem? Actual stats show that such retail theft is on the decline. But, of course, that won’t stop the lobbyists from these stores from pushing — and that means we’ve now got the fourth such law introduced just this year to deal with. With the introduction of the new bill, the House Judiciary Committee held hearings with law enforcement officials who did claim that retail theft was a problem, but according to Thomas O’Toole, they also said no new laws were needed. (techdirt)

The biggest problem currently faced by retailers is an economic depression. The same folks who engineered the financial melt down are by in large the same lawmakers running the show in Washington today. Instead of new rules for the Internet that are bound to put a bigger chill on commerce, how about stepping back and doing a little less meddling. All of the ill informed intervention, spending and borrowing have only made things worse so far. More ham handed intervention by that same  poorly informed Parliament of whores is the last thing the Internet or the economy need right now.

EDGEWATER, Colo. — A man who claimed he was attacked and stabbed in Edgewater Monday night has admitted he stabbed himself because he didn’t want to go to work.

Aaron Siebers, 29, reported the stabbing at about 6:30 p.m. when he walked to his job at Blockbuster Video, 1921 Sheridan Blvd.

Siebers was rushed to St. Anthony Hospital where he received stitches to close his wound.

Meanwhile, officers from Edgewater, Mountain View, Lakewood, Lakeside and Jefferson County began a search for the suspects, who had been described as three skinheads or Hispanic males dressed in black. He told police they tried to rob him and then stabbed him with a knife.

Investigators reviewed surveillance video taken at a nearby business. It failed to show an attack where Siebers claimed it had happened.

Now Retail can be stressful at times. Dealing with customers all day can be a demanding situation. But commit Seppuku so you don’t have to report to work? Wouldn’t quitting been easier??

Linky.

While video retail stores fade into the sunset with the end of the decade, and retailers cull all but the fastest moving goods from their shelves, two  virtual businesses thrive.  Amazon and Netflix are bucking the down trend as demonstrated earnings:

Net income for Amazon jumped 68 percent to $199 million, or 45 cents a share, in the quarter that ended September 30, compared with $118 million, or 27 cents a share, in the prior year’s quarter.

Sales rose 28 percent to $5.45 billion versus $4.26 billion in 2008’s third quarter, the company said Thursday.

Amazon’s stock shot up $23.75, or 25 percent, to $117.29 in Friday trading.

Another beneficiary of solid customer growth, Netflix also surpassed analysts’ expectations for the third quarter.

The company’s earnings jumped 48 percent to $30.1 million, or 52 cents a share, versus $20.4 million, or 33 cents a share in the prior year’s quarter. Sales grew 24 percent to $423.1 million, compared with $341.3 million in 2008’s third quarter. (Cnet)

Both Netflix and Amazon have led in the digital distribution of media, but that’s not the whole story. Both distribute a deep, long tail of physical goods. Offering fast delivery, low prices and a vast selection trumps the sparse selection at the local big box retailer every time.

disclaimer - both Amazon and Netflix are Third Pipe affiliates