Showing posts with label Cooperation. Show all posts
Showing posts with label Cooperation. Show all posts

Friday, July 19, 2013

Advertising: Apple’s Move Into TV Relies on Cooperation With Industry Leaders

Now, as Apple tries to reimagine television, it is taking the partnership route again, collaborating with distributors like Time Warner Cable and programmers like the Walt Disney Company on apps that might eliminate the unpleasant parts of TV watching, like bothersome set-top boxes or clunky remote controls.

Apple’s broader strategy — what its chief executive, Timothy D. Cook, recently called its “grand vision” for television — remains shrouded in secrecy, as everything Apple-related tends to be. Some analysts continue to predict, as they have for years, that the company will someday come out with a full-blown television set.

Whether or not an iTV ever materializes, the company’s more modest steps, like improving the $100 Apple TV box that 13 million households now have and adding access to cable channels through the box, suggest that its strategy stands in stark contrast to Google’s, which is contemplating an Internet cable service that would compete directly with distributors like Comcast and Time Warner Cable.

Reports emerged earlier this week that Google has held talks with several channel owners about licensing channels for such a service, but no content deals are within reach.

Apple weighed something similar years ago, but its executives concluded that it should work with the industry’s powerful incumbents, rather than against them.

“Apple’s probably going to have greater access to content by deciding to cooperate,” said Natalie Clayton, who oversees digital video research for Frank N. Magid Associates.

Case in point, Apple last month turned on HBO and ESPN apps for Apple TV owners, much to the delight of all involved. But those work only for people who have an existing cable or satellite subscription.

Coming next is an app from Time Warner Cable, allowing some of the company’s 12 million subscribers to watch live and on-demand shows without a separate set-top box. The app will effectively add an Apple layer on top of the TV screen, providing what its proponents say is a programming guide that is far superior to anything offered by Time Warner.

Apple has talked in-depth with other big distributors about similar apps, according to people involved in the talks. Its intent is to collect a fee from distributors in exchange for enhancing their television service and in that way, theoretically, make subscribers more likely to keep paying for cable.

“They’re trying to apply their software expertise, their user interface expertise,” one of the people said. (The people, both at distributors and programmers, insisted on anonymity because they said public comments would interfere with the private talks with Apple.)

Apple has sought support from programmers as well. It has proposed, for instance, an ad-skipping technology that would compensate networks for the skipped ads by charging users. While the idea is far-fetched, it intrigued some of the channel owners who were briefed about it and excited Apple followers when it was first reported by the technology writer Jessica Lessin earlier this week.

For Apple, further moves into television could neutralize some of the skepticism about the company’s future since the death of Steve Jobs in 2011. Investor concerns that the company might not have another iPhone- or iPad-level innovation on the way have dragged down its stock price, which topped $700 for the first time last September, but has recently hovered closer to $400.

For the time being, Apple TV is a small part of its business — something best suited to “hobbyists,” as Mr. Cook put it at the D: All Things Digital conference in May. At that time, he hinted at the opportunity Apple saw in the living room, calling traditional TV watching “not an experience that I think many people love” and “too much like 10 or 20 years ago.”

It is easy to see how Apple could help. Products like Apple TV and Roku, which connect TVs to the Internet’s wealth of streaming content, have proliferated because the set-top boxes that cable companies supply have not kept up with shifts in consumer behavior. But the streaming boxes remain a somewhat niche technology.

Apple could choose to market its box more heavily, especially as competition heats up from Amazon and other companies. Or it could eliminate the need for any box at all by building its own TV set. Reports this week that Apple may acquire PrimeSense, a maker of motion-sensing technology that could be used to control a TV without a physical remote, prompted a new round of guessing about that.

In Apple’s partnership approach, some see the company placing a multitude of bets, recognizing that television could evolve in any number of ways.

Through Apple TV, it is simultaneously supporting established distributors and programmers as well as a parallel universe of streaming TV, as represented by Netflix, Hulu and Amazon.

Last month, in a little-noticed move, the company approved an app for Sky News, the British-based cable news channel. Sky could already be streamed live free on the Web, but by creating an app for Apple TV, the channel gained access to the television sets in 13 million homes without the need for complex negotiations with cable companies.

The Sky News app is free, but the software that powers it, from a company called 1 Mainstream, also allows for à la carte subscriptions.

Asked about the implications of the app, Rajeev Raman, the chief executive of 1 Mainstream, said: “It’s a learning year for Apple. And it’s a learning year for all of us, to say, O.K., what really does work?”

In effect the app is a more direct route to consumers for Sky News. Bloomberg TV, already available on cable, tried something similar earlier this year by cutting a carriage deal with Aereo, the streaming service backed by Barry Diller. But Aereo is antagonistic toward networks and existing distributors; Apple, at least for now, is positioning itself as a friend.

Sunday, July 14, 2013

Report Indicates More Extensive Cooperation by Microsoft on Surveillance

Quoting classified internal N.S.A. newsletters obtained from Mr. Snowden, The Guardian newspaper reported that Microsoft had helped the security agency find ways to circumvent its encryption on its Outlook.com portal’s encrypted Web chat function, and that the agency was given what The Guardian described as “pre-encryption stage” access to e-mail on Outlook, including Hotmail e-mail.

The Guardian, which did not release the N.S.A. documents that it quoted, said that Microsoft had also provided the F.B.I. with access to its SkyDrive service, a cloud storage service with millions of users.

Microsoft, according to The Guardian, also worked with the F.B.I. to study how Outlook allowed users to create e-mail aliases, while Skype, now owned by Microsoft, worked with the government to help it collect both the video and audio of conversations. It also reported that information collected through the N.S.A. program code-named Prism was shared with both the F.B.I. and the C.I.A.

Microsoft said in a statement that it only provided access to its systems when required to do so by court orders.

“We only ever comply with orders about specific accounts or identifiers, and we would not respond to the kind of blanket orders discussed in the press over the past few weeks,” the company said in its statement. “To be clear, Microsoft does not provide any government with blanket or direct access to SkyDrive, Outlook.com, Skype or any Microsoft product. Finally, when we upgrade or update products legal obligations may in some circumstances require that we maintain the ability to provide information in response to a law enforcement or national security request.”

The latest disclosure from documents leaked by Mr. Snowden underscores the increasingly close ties between the N.S.A. and the high-tech community. Microsoft, Facebook and other companies have already been forced to address questions about their cooperation with the agency following Mr. Snowden’s disclosure of the Prism surveillance program.

Many of the companies have repeatedly denied that they agree to blanket collection requests from the government, despite evidence that the government has for years collected huge amounts of phone and Internet data from American citizens. An N.S.A. Internet metadata collection program revealed by Mr. Snowden, for example, was halted in 2011 only after two members of the Senate Intelligence Committee began to question its value.

Fearing a negative public response to their cooperation, some Silicon Valley companies are beginning to openly push back against the security agency. Yahoo, for example, is now asking the Foreign Intelligence Surveillance Court, the secret court that rules on data collection requests by the government, to allow it to make public the record of its 2008 challenge to the constitutionality of the law requiring it to provide its customer data to the agency.

A Yahoo spokeswoman said Thursday that the company was “seeking permission from the FISA court to unseal the arguments and orders from the 2008 case.”

Yahoo said in a public filing with the FISA court this week that releasing documents about the 2008 case would allow it “ to demonstrate that it objected strenuously to the directives that are now the subject of debate, and objected at every stage of the proceeding, but that these objections were overruled and its request for a stay was denied.”

Signs of a popular backlash against the security agency’s large-scale collection of the personal data of Americans have convinced a leading privacy advocate in Congress that the Obama administration may soon begin to back away from the most aggressive components of the agency’s domestic surveillance programs.

The advocate, Senator Ron Wyden, an Oregon Democrat and a member of the Senate Intelligence Committee, said in an interview Thursday that he believed that the security agency might soon abandon the bulk collection of the telephone calling data of millions of Americans.

The current controversy over the agency’s surveillance policies was first set off after Mr. Snowden leaked a secret FISA court order telling Verizon to turn over calling data from all of its customers. Mr. Wyden now believes that the White House is beginning to recognize that the program raises so many privacy concerns that it is willing to drop it.

“I have a feeling that the administration is getting concerned about the bulk phone records collection, and that they are thinking about whether to move administratively to stop it,” he said. He added he believed that the continuing controversy prompted by Mr. Snowden had changed the political calculus in Congress over the balance between security and civil liberties, which has been heavily weighted toward security since the Sept. 11 terrorist attacks.

“I think we are making a comeback,” Mr. Wyden said, referring to privacy and civil liberties advocates.

Claire Cain Miller contributed reporting from San Francisco.