Technology

The business and culture of our digital lives,
from the L.A. Times

Category: Amazon

Searching for an improved online shopping experience? Google has a new plan

November 4, 2009 |  9:00 pm

Google_store_sorting
Google offered this example of how an online store using Google Commerce Search could look, with searchable products sortable by category, color, size or price. Credit: Google.

Just in time for the holidays, Google Inc. took the wraps off a new business, one designed to help big online retailers make their websites easier to search.

With Google Commerce Search -- a service that will cost retailers $50,000 or more for an annual subscription -- the Internet giant will set up a search function on an online retailer's website, which Google says will dramatically improve user experience and drive sales. The product represents a challenge to Google's archrival Microsoft Corp., as well as to Oracle Corp., Endeca Technologies Inc. and other firms that run retailers' websites.

The main selling points are that everything that has made Google a dominant company -- vast computing resources, algorithms that provide right results, and even the ability to fix your typos and find what you're looking for -- will help people navigate clunky retail websites that cause a major stumbling block to sales.

"Search was the most important aspect of an e-commerce experience," said Nitin Mangtani, a lead product manager at Google. People go to a website looking to buy, say, a laptop, and they search the site for the item they want. "If the users are able to find that laptop easily, they are more likely to buy the product," Mangtani said. "If it takes them eight to 10 seconds, and they can't find it easily, they leave the website."

Whereas people have high expectations, websites weren't delivering, so Google saw an opportunity, the company said.

Search engine analyst Greg Sterling said...

Continue reading »

Amazon announces Kindle for PC (no Kindle device needed, but bring your own PC)

October 22, 2009 |  1:15 pm
Kindle for PC with Twilight
The Kindle for PC software will let users read Amazon's digital books without having to buy the $259 Kindle device. Credit: Amazon

Most people think of Amazon's Kindle as a slim piece of hardware the size of a very thin paperback book.

In fact, Kindle is also a piece of software that displays digital books on any device Amazon chooses. Today, the Seattle online retailing giant unveiled a Kindle version for computers. The application was part of Microsoft's Windows 7 operating system launch event in New York this morning. Expected to be released in November, the program will also run on Microsoft's earlier operating systems, Windows XP and Windows Vista.

Dubbed Kindle for PC, the free software will let readers view full-color photos and use touch screens to browse books, turn pages and adjust font sizes for digital books purchased at Amazon's online bookstore. Amazon has released a version of the reader for Apple's iPhone and iPod Touch devices.

Amazon's announcement came days after rival bookseller Barnes & Noble said it would start selling its own device, the nook. Due to ship in November, the $259 reader features the same gray-scale E Ink screen as the Kindle, but also has a separate color touch screen. Nook owners also can share their books with their friends for up to 14 days at a time.

In contrast, the Kindle 2 and the Kindle DX, two devices sold by Amazon, has only the gray-scale screens and don't allow users to "lend" digital copies of their books to others.

By releasing Kindle for PC, Amazon is expanding the audience for its digital books beyond just readers who can afford to buy its $259 device to about 1 billion of the world's PC users.

-- Alex Pham

Follow my random thoughts on games, gear and technology on Twitter @AlexPham.


Microsoft's Sidekick debacle brings much-hyped 'cloud' back to Earth

October 14, 2009 |  8:10 am
Cloud
Credit: ZeroOne/ Flickr.

Over the last year, the technology sector has become enamored with the possibilities of the "cloud."

That's the computing paradigm that allows consumers to forget about storing their software and data on local hard drives -- where it can be vulnerable to electrical surges and soft-drink spillage -- and let  companies like Amazon, Google and Microsoft worry about keeping it safe.

But last week, a hole was poked in the cloud's massive hype bubble. Microsoft Corp. and T-Mobile Inc., the respective maker and carrier of the Sidekick mobile device, acknowledged a "service disruption" that cut off most users of the device from large amounts of personal data -- contacts, calendars, personal notes and more -- that were stored in Microsoft's cloud.

Initially pessimistic about their data recovery efforts, the companies on Monday released a more sanguine forecast, saying that "the prospects of recovering some lost content may now be possible." (For close readers, note the number of conditional nouns and verbs in that sentence -- not very confidence-inspiring.) 

But the larger questions may be how this incident will affect attitudes about the dependability of cloud computing, or if it should affect them at all.

In places where the cloud is now on trial -- in Los Angeles City Hall, for one -- decision makers may have one more reason to be suspicious of its many promises. Google Inc., a major proponent of cloud software, is quick to offer a laundry list of advantages -- lower cost, ubiquitous access, no hassle.  But the company spends less time warning of its potential pitfalls.

Though absent in Google's promotional literature, those pitfalls are enumerated at length in the company's regulatory filings, where it must legally disclose risks and liabilities to its shareholders. In a letter last week to City Councilman Bernard C. Parks, John Simpson of advocacy group Consumer Watchdog noted the stark language Google uses to describe the many things that could go wrong with its cloud-based systems:

"Our systems are vulnerable to damage or interruption from earthquakes, terrorist attacks, floods, fires, power loss, telecommunications failures, computer viruses, computer denial of service attacks, or other attempts to harm our systems. Some of our data centers are located in areas with a high risk of major earthquakes. Our data centers are also subject to break-ins, sabotage, and intentional acts of vandalism, and to potential disruptions if the operators of these facilities have financial difficulties. Some of our systems are not fully redundant, and our disaster recovery planning cannot account for all eventualities. The occurrence of a natural disaster, a decision to close a facility we are using without adequate notice for financial reasons, or other unanticipated problems at our data centers could result in lengthy interruptions in our service.”

Of course, if a company is compelled to enumerate every possible risk to its bottom line, it may read like the above parade of nightmares -- when in reality each individual disaster may be exceedingly unlikely. So far, Google is not known for weak security. 

Still, with the Sidekick situation, Microsoft has proved that data disasters do -- and will -- happen.  (Notably, the Redmond, Wash., software maker is vying with Google for the Los Angeles computing contract).  What's less clear is how frequent this type of incident will occur and whether cloud users ought to be actively worried. As with plane crashes, disease outbreaks and shark attacks, a handful of sensational instances may not reflect the risk to the population at large. Moreover, some businesses can learn from errors and reduce the likelihood of a repeat occurrence.

People are willing to tolerate a certain amount of risk -- otherwise they wouldn't be flying, driving, eating spinach or surfing in Malibu

But the cloud is new and fragile, kept levitating largely by the trust of its users. To date, serious problems have been relatively rare. But if consumers begin to believe their data is not safe in the hands of certain companies, they'll just pull it out -- and poof!

-- David Sarno


Move over, Wii -- Electronic book readers poised to become this holiday's hot ticket

September 29, 2009 | 12:00 am

Sony Daily Edition

Sony's Daily Edition is expected to hit store shelves later this year at $399. Credit: Sony Electronics.
Will digital books catch fire this holiday? According to an online survey, 1 in 5 shoppers said they planned to buy an electronic book reader such as a Sony Reader or Amazon Kindle this year.

When asked what they would like to get as a gift this year, about 1 in 10 cited a digital book reader. Portable music players, once the hot holiday ticket, got just 3.4% of the vote, while game consoles came in at 6%, according to the survey commissioned by Retrevo, a gadget review website.

EBook Reader Buyers by Age

Likely buyers tend to be men, under 35 years old, living in the Northeast where more people use public transportation, and with an average annual household income of more than $100,000, according to the survey of 771 respondents.

Of those who said they planned to spring for an electronic book reader, 62% said they would buy Amazon's Kindle 2 or Kindle DX, while 32% favored the Sony Reader. Although Amazon and Sony dominate the business today, more devices are scheduled to hit the U.S. market within the next year, including the $399 IREX expected later this fall and Plastic Logic due out in 2010.

To give its online bookstore a competitive advantage, Sony today is announcing it is throwing the doors open to independent authors to publish electronic books on its site. Sony said it has partnered with two companies, Smashwords and Author Solutions, to help independent writers self-publish digital books on Sony's eBook Store, which currently sells more than 130,000 titles. It also distributes millions of free public domain books via a partnership with Google. Amazon, on the other hand, boasts 350,000 titles for its Kindle readers.

Although sales of electronic books constitute less than 5% of the $25-billion book market, it's a fast-growing category within publishing, said Chris Smythe, director of Sony's online bookstore.

"With digital, people tend to buy more books," Smythe said. "It's easier, often cheaper, and you can get it right away."

-- Alex Pham

Follow my random thoughts on games, gear and technology on Twitter @AlexPham.


Film Fresh to offer Hollywood movies in DivX

August 26, 2009 |  5:00 am

Film Fresh, DivX, Sony Pictures, Paramount, Warner Bros., Lionsgate, DRM, CSS, downloadable movies Online movie retailer Film Fresh announced today the availability of movies from four Hollywood studios in the DivX format, marking the latest step forward for the downloadable movie business. DivX had previously announced licensing agreements with Sony Pictures, Warner Bros., Paramount and Lionsgate; FilmFresh, which had already been offering some independent and foreign titles as downloadable DivX files, becomes the first U.S. retailer to take advantage of DivX's new relationship with Hollywood.

The main shortcoming for DivX is that DVD players and other devices require special software to decode and decrypt the format. But DivX compatibility has spread rapidly through the consumer electronics industry, most recently among TV makers and mobile phone manufacturers. Its main advantage over the formats used by other downloadable film outlets (e.g., Amazon and Apple) is that its domain-based DRM makes it far simpler for consumers to watch protected DivX movies away from their computers. DivX files can be stored on portable hard drives, USB drives and memory cards, enabling them to be moved easily and cheaply from screen to screen (assuming the device they plug into is DivX compatible). And any computer with a DVD recorder can burn a protected DivX download onto a standard disc. By contrast, creating a DVD with the CSS DRM that Hollywood studios favor requires a special burner and customized discs.

Rick Bolton, chief executive of Film Fresh, said his site would have about 600 Hollywood titles today, consisting of a mix of new and old releases. The addition of the major Hollywood studios signals a transformation of the online retailer...

Continue reading »

Microsoft, Yahoo and Amazon band together to oppose Google Books settlement

August 20, 2009 |  7:02 pm
Google Books
Google's settlement with authors and publishers is gaining opposition. Credit: basictheory via Flickr.

Three powerful technology companies have banded together to oppose Google's proposed settlement with the Authors Guild and the Assn. of American Publishers over the Mountain View, Calif., search giant's book scanning project.

Microsoft, Yahoo and Amazon have signed on to a coalition being assembled by the Internet Archive and Gary Reback, a Silicon Valley antitrust lawyer, said Peter Brantley, director of the Internet Archive, a San Francisco nonprofit that works to build a free digital library of Internet content.

Though the coalition has not been formally announced, several participants have already agreed to take part, including the New York Library Assn., the Special Libraries Assn. and the American Society of Journalists and Authors. The group is expected to issue a joint statement next week.

The coalition's members include players who normally would be sitting at opposite sides of the table. Reback, for example, is known for instigating the antitrust efforts against Microsoft. That they have agreed to join forces suggests the magnitude of concern raised by Google's book-scanning efforts, Brantley said.

"By having a set of organizations speaking together, we can demonstrate the seriousness which we all confront by the issues raised by the proposal," Brantley said in an interview. "We are all united in our understanding of the core issues, such as its impact on competitiveness and the threat to reader privacy."

The settlement, reached last October, would allow Google to continue to digitize millions of out-of-print books, with the help of several of the nation's largest libraries. The agreement sets up a way for authors and publishers to get 70% of the sale of those books, with Google keeping 30%. It also lets Google sell ads around book searches that involve out-of-print books that are still under copyright protection.

With a Sept. 4 deadline for comments on the settlement fast approaching, a growing number of parties have voiced their opposition in recent weeks, including William Morris Endeavor Entertainment, which represents hundreds of writers, the National Writers Union and a group of professors from the University of California.

Much of the concern stems from fear that Google would have the power to raise prices to prohibitive levels or that Google would not guarantee the privacy of its readers.

The agreement is also the subject of a Justice Department antitrust inquiry.

-- Alex Pham

Follow my random thoughts on games, gear and technology on Twitter @AlexPham.


Baseball comes to Roku

August 10, 2009 |  9:01 pm

MLB-Roku player Major League Baseball has just added another way for fans to watch games: through Roku's $99 Digital Video Player. Like an earlier deal with Boxee, the agreement enables MLB.TV subscribers to move live webcasts from their PC screens to their television sets. The only charge for Roku's baseball channel is the MLB.TV subscription fee, which is about $35 for the remainder of the current season. The Roku capability makes the league's offering more appealing to baseball junkies, albeit not a huge number of them; the Roku box isn't exactly a mainstream appliance. The bigger winner is Roku, which relies on content deals such as this one to spur sales.

Prior to MLB.TV, Roku had only two online video partners: Netflix, which offers older movies and TV shows to subscribers, and Amazon, which provides newer releases on demand on an a la carte basis. The goal for Roku (and Boxee) is to present the full panoply of online video, or at least all the major sources of programming on the Web. But some top content providers and online aggregators have been reluctant to support this "over the top" distribution model for fear of undermining the revenue the industry collects from pay-TV operators. 

Baseball has no such qualms. But then, the league charges for the privilege of watching games online, which makes MLB.TV less of a threat to the league's traditional TV-rights deals than a free online outlet would be. In other words, MLB.TV was low-hanging fruit for Roku. A larger challenge for the company is persuading ad-supported cable TV networks, such as the ones supporting Time Warner's "TV Everywhere" initiative, to come on board. 

Tim Twerdahl, Roku's vice president of consumer products, said a lot of content owners are "trying to find the right platform" for an Internet-on-TV play. "You'll see us doing more sports with other partners," he added, saying the company expects to offer at least 10 channels by the end of the year. Roku has made a development kit available to programmers who want to customize their online feeds for the Roku player (for example, by converting from a keyboard-and-mouse interface to one that uses a simple remote control). It's also working on enabling targeted advertising through the box, potentially generating more dollars per viewer than programmers can charge for the commercials they broadcast. Targeting reduces the number of viewers reached, however, so such a capability may not be much of a recruiting tool for Roku until it has a significantly larger customer base.

-- Jon Healey

Healey writes editorials for The Times' Opinion Manufacturing Division.


Highlights from the '1984' lawsuit against Amazon

July 31, 2009 | 12:35 pm
Kindling
"Kindling."  Credit: oskay / Flickr

Justin Gawronski and Antoine J. Bruguier are suing Amazon for having deleted their copies of George Orwell books from their Kindle readers, sans permission.  The potential class-action lawsuit claims harm inflicted on the parties for rendering their notes "useless" -- causing some commentators to call it the "Kindle ate my homework" case.

Here are a few highlighted quotes from the complaint, filed in the U.S. District Court in Seattle.

-- "[Plaintiffs] bring this class action complaint against defendants Amazon.com, Inc. and Amazon
Digital Services, Inc., ... for their wrongful practice of remotely deleting digital content from their customers’ Amazon Kindle electronic book (“e-book”) reading devices and Kindle for iPhone applications."

-- "Amazon not only deleted the e-books,but also rendered useless any electronic notes and annotations that consumers had made within these e-books because the notes were no longer tied to the referenced or highlighted text. Amazon then refunded the purchase price to these consumers."

-- "Amazon never disclosed ... that it possessed the technological ability or right to remotely delete digital content purchased through the Kindle Store from Kindles or iPhones."

-- "As part of his studies of '1984,' Mr. Gawronski had made copious notes in the
book. After Amazon remotely deleted '1984,' those notes were rendered useless...

Continue reading »

Amazon's Jeff Bezos talks about Zappos deal on YouTube

July 22, 2009 |  3:19 pm

Amazon.com snapped up online shoe store Zappos, and Jeff Bezos wants to talk about it. In a YouTube video posted today, Bezos waxes philosophical about Amazon's never-tire formula for success and how he believes that formula is shared by Zappos.

In a grainy video that looks hastily created, Bezos campily walks through a written list of "everything" he knows, which is four things: Obsess over customers, invent, think long term, and that "it's always Day One."

It takes Bezos nearly six minutes to get to the main point of the video, which is that, in his mind, Zappos makes the cut on all four of Bezos' rules for good business. "Zappos is a company I've long admired, and for a very important reason," says Bezos, clearly enamored of his new acquisition.

"Zappos has a customer obsession that's so easy for me to admire."

"I get all weak-kneed when I see a customer-obsessed company, and Zappos certainly is that. Zappos also has a totally unique culture...and I'm super excited about that."

-- David Sarno


Netflix stock nears 10-week high on Amazon buyout rumor

July 13, 2009 |  2:37 pm

Netflix Netflix Inc. shares closed at a near 10-week high today as rumors swirled that online commerce giant Amazon.com Inc. was looking to buy the 12-year-old online movie rental company. 

Netflix rose $2.12 to $42.19 with a trading volume of 4.2 million, one of the highest in months.

A Bloomberg report quoted an analyst attributing the trading activity to "renewed takeover talk" surrounding Netflix, with Amazon at the center of the conversation.

But other analysts were skeptical. 

"Adding another business that would essentially cannibalize from the moves they’re already trying to make just doesn’t make a whole lot of sense," said Steve Weinstein of Pacific Crest Securities.

"Amazon is ramping up digital distribution very quickly," he said. "They’ve obviously done a good job with e-books, and they’re making some progress with music.  So I don’t think anyone’s that much farther down the road than they are."

Neither Amazon nor Netflix would comment, saying that they don't respond to rumors and speculation.

Today's buyout rumor resembled whispers from June 2007 that spiked Netflix's stock price by 5% with one analyst predicting Netflix could fetch $1.5 billion if acquired by Amazon.

Both companies are big players in the online streaming business, where consumers can watch movies through special set-top boxes like those made by TiVo and Roku.  Amazon, which charges for each viewing, tends to have newer, more popular films available for download, while Netflix streams a more limited selection of older films to its subscribers. 

Netflix has a catalog of over 100,000 movies and television shows available by mail -- its primary delivery mechanism -- but streams only about 12,000 of those shows via its set-top software.  Amazon has made at least 40,000 movies available for streaming.

-- David Sarno



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