Pandora Media Inc, owners of the leading Internet radio service, reported a lower-than-expected increase in listeners in the third quarter, sending the company’s shares down 6 percent in extended trading on Thursday.
Pandora said it had 76.5 million active listeners as of Sept. 30, an increase of 5.2 percent from a year earlier.
Analysts, on average, had expected 76.7 million, according to market research firm StreetAccount.
Total listener hours rose to 4.99 billion from 3.99 billion, but again fell short of the average estimate of 5.02 billion.
Pandora’s profit and revenue both beat market expectations, however, as more people listened to streamed music on their mobile phones.
Mobile revenue increased 52 percent to $188 million, while local advertising revenue rose 118 percent to $41.8 million.
Despite its huge user base, Pandora faces stiff competition from Spotify, Apple Inc’s Beats online streaming service, Google Inc, and Amazon.com Inc in the fast-growing music streaming business.
Amazon, which had been in discussions with Simon & Schuster since July over pricing, confirmed the deal first reported by the Business Insider news blog that the two had reached an agreement.
Amazon had been locked in a months-long standoff with publisher Hachette Book Group, the fourth-largest U.S. book publisher owned by France’s Lagardere, over digital book pricing. That has led to numerous issues for authors.
Industry experts had expected other publishers eventually to be drawn into negotiations as well, as the Internet retailer tries to set new benchmarks for the e-book market.
Negotiations with Simon & Schuster took about three weeks and closed two months before Amazon’s contract expired, according to Business Insider.
Simon & Schuster made its original offer and an agreement was reached after a few changes by Amazon, the source told Business Insider.
The firm claims that its IBM Internet of Things Foundation service “makes it possible for a developer to quickly and easily extend an internet-connected device such as a sensor or controller into the [IBM Bluemix] cloud”, and then “build an application [for] the device to collect the data and send real-time insights back to the developer’s business”.
IBM promotes its Bluemix cloud services as an open standards cloud platform for building, managing and running all types of applications for the web, mobile, big data and smart devices.
Big Blue says its Internet of Things Foundation service “delivers rapid access to, and provides valuable insights from, IoT device data coming from billions of internet-connected sensors and controllers”.
The firm cited IDC estimates that there are already nine billion IoT devices in the world, and that there will be as many as 28 billion IoT devices by 2020.
IBM foresees that by providing IoT devices connectivity in cloud services, “equipment and asset manufacturers can use IoT to provide remote service and monitoring to residential and commercial customers, oil and gas companies can remotely monitor and provide predictive maintenance to critical equipment, and logistics companies can track and monitor the condition of goods in transit”, as just some of the industrial, consumer services and financial applications of IoT-enabled systems.
“Think of the IoT Foundation as an extremely fast on-ramp to the cloud for the millions of intelligent IoT devices that are now being shipped, and the billions already internet connected,” said IBM Internet of Things VP John R. Thompson.
IBM said it plans to enlist partners for its IoT efforts, which it expects will include ARM, B&B Electronics, Elecsys, Intel, Multi-Tech Systems and Texas Instruments. Along with these partners, it plans to develop a set of certified instructions, or “recipes” for connecting IoT devices, sensors and gateways.
IBM Bluemix cloud services are already available for developers worldwide, and the IBM Internet of Things Foundation will be available from 21 October. You will need an IBM account to participate, of course.
Amazon.com Inc is add more territory to its online grocery delivery program to Brooklyn’s well-heeled Park Slope neighborhood, giving the No. 1 U.S. online retailer a foothold in one of the wealthiest and densest markets in the United States.
The AmazonFresh program, which offers same-day or next-day delivery on more than 500,000 items including fresh and frozen groceries, will soon expand to other areas in Brooklyn.
The move is part of Amazon’s slow build-out of its “Fresh” program, targeting one of the largest retail sectors yet to be upended by online commerce. Amazon declined to say if it will expand to Manhattan or other parts of the New York metro area.
“Currently, we are offering AmazonFresh in Brooklyn and will continue being thoughtful and methodical in our expansion,” an Amazon spokeswoman said in an e-mail.
Groceries have proven to be one of the toughest sectors for technology companies to manage, and Amazon faces competition from established companies like FreshDirect as well as fast-growing startups like Instacart.
But a successful foray in Park Slope could help Amazon cement customer loyalty and boost sales, especially among wealthy and middle-class families, analysts have said.
The top 10 to 20 percent of wealthiest Americans spend between 3 and 4 times more on food than the average American family, according to Bill Bishop, chief architect at Brick Meets Click, a consulting firm focused on retail technology.
“They are the sweetest of shoppers so anybody who attracts that business is taking the cream of the market,” Bishop said.
Amazon could also use its Fresh program to experiment with its own delivery service, analysts have said.
The Google Express service, which was earlier only available in certain parts of California and New York City, will be expanded to Boston, Chicago, and Washington D.C., Google said in a blog.
Membership for the service, which was earlier called Google Shopping Express, will cost $95 a year, or $10 a month.
Online retailer Amazon’s same-day delivery service, called Prime, charges customers $99 per year, after a free one-year trial.
Google Executive Chairman Eric Schmidt, at a public speech made in Berlin on Monday, called Amazon its “biggest search competitor”, the Financial Times and other media reported.
“Many people think our main competition is Bing or Yahoo. But, really, our biggest search competitor is Amazon,” the FT quoted Schmidt as saying.
Schmidt said internet users are likely to go directly to the retailer if they are shopping.
The company, which is reportedly opening the store on Manhattan’s busy 34th Street, is looking to experiment with a retail store that would focus on same-day delivery in the city, as well as give customers a place for product returns, exchanges and even online order pickups, according to a report in the Wall Street Journal (subscription required) .
The store also would give shoppers a place to check out – and hold in their hands — Amazon’s Kindle e-readers and Fire smartphone.
Kelly Cheeseman, a spokeswoman for Amazon, told Computerworld, “We have made no announcements about a location in Manhattan.”
“This is kind of interesting because it’s so counter-intuitive,” said Rob Enderle, an analyst with the Enderle Group. “People buy in different ways and often, with holiday buying, folks shift sharply to stores as their procrastination catches up with them at the end of the season. Amazon loses business when this happens and by setting up stores in very high-traffic areas, they can go after at least some of this business.”
The brick-and-mortar store also will be an in-your-face reminder for people to think about shopping at Amazon as they move through Manhattan. They might not be able to stop in the store but it might nudge them to look online – especially at Amazon.com — for that sweater, book or stand mixer they want to buy.
“I think it’s more about bringing publicity to Amazon during the holiday season rather than a new move to bricks and mortar,” said Dan Olds, an analyst with The Gabriel Consulting Group. “First, it’s in New York City — in the heart of midtown Manhattan — and it will be open during the Christmas shopping season. I would also imagine that this will garner Amazon a lot of attention during the Black Friday and Cyber Monday shopping events.”
Redbox Instant, a streaming video service partnership between Verizon Communications Inc and Outerwall Inc’s Redbox, will cease to exist this week because the venture has not been as successful as hoped, the two companies jointly announced.
The service, which combined the Redbox DVD rental kiosk business with a streaming video offering from Verizon, was launched in 2013 to compete against online video company Netflix Inc but never caught on with consumers.
Redbox Instant will shut down on Oct. 7th, the companies said in a joint statement.
“The joint venture partners made this decision after careful consideration,” the statement said. “The service had not been as successful as either partner hoped it would be.”
Subscribers will receive an email notifying them of the termination of the service. A separate email will be sent on Oct. 10 with details on refunds, the statement said.
The alliance marked Verizon’s first foray into video streaming outside its network operating region, but it never gained a foothold against online rivals such as Netflix, Amazon.com Inc and Hulu Plus.
The telephone company had only offered Web video services to subscribers using its FiOS TV service, which competes with cable providers such as Comcast Corp and Time Warner Cable.
BlackBerry’s new qwerty Passport smartphone quickly sold out just hours after going on sale online last Wednesday, with another 200,000 back orders waiting in line, BlackBerry CEO John Chen proudly announced.
Chen didn’t indicate how many units were sold online, but said ShopBlackBerry.com sold out the Passport in six hours, with Amazon.com selling iout in 10 hours before customers began leaving online orders that had reached 200,000 as the day it debuted. The device has a price tag of $599 unlocked.
“That’s extremely good receptivity” for Passport, Chen said.
But that wasn’t Chen’s only good news in what he called a “very solid” second quarter that ended Aug. 30 with an earnings loss of $11 million, or 2 cents per share, compared to an 11-cent per share loss the previous quarter. Still, revenues were $916 million for the quarter, down from $966 million in the previous quarter, and well below the $1.5 billion reported for the same quarter a year ago.
Chen predicted profitability for BlackBerry by mid-year 2015, possibly in the first fiscal 2016 quarter that starts in March 2015. “You can see a progressively good trend going forward,” Chen said.
Chen said that large companies, especially in banking and government, are coming back to BlackBerry for its smartphones and BlackBerry Enterprise Server 10 software for security and management. They are coming for “stability,” he said.
“The product is broader and deeper and has history with most customers,” Chen added. “I have spoken to many executives and people are very interested in working with us. Our technology works and works well. Governments use it and major banks use it. We’re winning them back — knock on wood, I don’t want to be overconfident — and we’re starting to see that with very big companies.”
He also predicted more interest in BlackBerry once it launches its next operating system, BlackBerry 12, on Nov. 13 at an event in San Francisco.
The company posted a number of successes, including what it called a “normalized” use of cash of $36 million in the recent quarter, compared to $255 million in the prior quarter.
The price for a standalone PlayStation TV (PS TV) is $99.99, the company wrote in a blog. For $139.99, customers can get a wireless controller, an 8 GB memory card and “The Lego Movie” videogame along with the PS TV.
Around 700 games will be available to PS TV users, including “Metal Gear Solid” and the franchise “Killzone: Mercenary”.
PS TV was released in Japan and other Asian countries under the name “PlayStation Vita TV” last fall. Sony is trying to expand its entertainment network services to compete against players like Amazon.com Inc.
Sony did not say when it will launch its online TV service.
The company signed a deal earlier this month to carry 22 Viacom Inc channels, including Comedy Central and MTV, on its planned online TV.
PlayStation boss Shaun Layden told tech blog Re/code in June the company was “on track” to unveil its product some time this year.
Sony’s web TV service will join the ranks of an already crowded market with devices from Apple Inc, Amazon.com Inc and Roku.
The No. 1 U.S. online retailer also revamped its basic Kindle e-reader to include a touch screen. It will cost $79, about 15 percent more than the current basic model.
Other new devices unveiled on Wednesday are a $99 Kindle Fire HD tablet, which includes a smaller, six-inch screen as well as a tablet designed for kids that starts at $149. Amazon also upgraded its 7-inch and 8.9 inch Fire tablets.
All the upgraded and new devices start shipping in October.
The expanding Kindle lineup underscores Chief Executive Jeff Bezos’ commitment to developing devices as a way to retain users and bolster its core business of retail and shopping.
This year alone, Amazon has launched a set-top box, a grocery ordering wand and a Fire smart phone, which debuted in July to lackluster reviews.
Amazon, which entered the hardware sector with the 2007 launch of the Kindle, has adopted a strategy of selling the devices at cost, and it profits when users buy content or goods.
It has been investing heavily in content, inking a deal this year to stream some HBO shows including “The Sopranos” and “The Wire” to members of its Prime subscription program.
“The vast majority of people are still using the tablets,” David Limp, vice president of devices for Amazon, said during a briefing with reporters in New York.
Executives touted the Kindle Voyage as the thinnest device Amazon has ever made. The company hopes heavy readers might adopt the device, which more closely mimic a paper book.
State and local officials in Ohio are attempting to woo Amazon.com Inc with tax breaks and other perks to convince the No. 1 U.S. online retailer to build a $1.1 billion data center in central Ohio and create 120 jobs, according to public records.
The records offer a rare look at the typically tight-lipped company’s growth plans for its popular cloud computing division, Amazon Web Services, founded in 2006. There are 10 AWS data centers, called regions within the company, around the world, including four in the United States, AWS said.
“We are constantly evaluating a long list of additional target countries and U.S. locations,” AWS said in a statement.
In late August, the Ohio Tax Credit Authority extended an estimated $81 million in tax breaks to an Amazon subsidiary called Vadata Inc, according to state filings.
In exchange for the tax deal, Amazon has committed to invest at least $1.1 billion over the next three years to build a data center. It will also create 120 jobs with an average salary of $80,208 by the end of 2018, according to the filing.
Separately, city officials in Dublin, Ohio, are also looking to transfer 68.7 acres of city-owned land to the company from 2015 until 2024 – worth $6.75 million – among other perks, according to city documents posted online.
The Columbus Dispatch newspaper reported that Dublin city officials are expected to vote on whether to proceed with the Amazon offer on Sept. 22.
The company has asked the Federal Communications Commission for permission to use two blocks of frequencies for the tests, which are scheduled to last about six months and begin in October. They will be conducted above an area of more than 1,400 square kilometers in the center of New Mexico to the east of Albuquerque.
“Google recently acquired Titan Aerospace, a firm that specializes in developing solar and electric unmanned aerial systems for high altitude, long endurance flights,” Google said in its application. “These systems may eventually be used to provide Internet connections in remote areas or help monitor environmental damage, such as oil spills or deforestation.”
Google said its application for temporary permission to make the transmissions was needed “for demonstration and testing of [REDACTED] in a carefully controlled environment.”
The FCC allows companies to redact certain portions of their applications when they might provide too much information to competitors.
In the application, Google said it wants to use two blocks of frequencies, one between 910MHz and 927MHz and one between 2.4GHz and 2.414GHz. Both are so-called “industrial, scientific and medical” (ISM) bands typically used for unlicensed operations.
The application has not yet been approved.
It’s the latest in a series of moves by the company to trial Internet delivery from the skies.
The company unveiled its ambitious Project Loon last year, which uses a series of high-altitude balloons that float in winds at about 20 kilometers (65,000 feet) above the Earth. The first experiments with Loon involved using a transmission system based on WiFi, but earlier this year the company began experimenting with LTE cellular transmissions in a test site in Nevada.
Google acquired Titan Aerospace in April this year for an undisclosed price.
The Fire Phone, which originally sold for $649 minus a contract commitment and for $199 with a two-year deal with AT&T, was marked down to $449 without a contract and 99 cents with one.
Amazon spun the dramatic price cut in the best possible light. “Fire is another example of the value Amazon delivers to customers,” said Ian Freed, vice president of Amazon Devices, in a statement Monday.
In fact, by all accounts, the Fire has done poorly. According to data mining done a month ago by ad network Chitika, Fire Phone usage grew only “incrementally” in the device’s first two months. By Aug. 14, Amazon’s phone accounted for just 0.02% of all smartphone-based ad impressions.
Chitika’s number was not a measurement of the number of devices in use, but of the online activity of Fire Phone users: The calculation was best described as “usage share.”
StatCounter, another metrics vendor that also tracks usage share, did not even list Fire Phone in its operating system data for the month of August.
In June, when Amazon CEO Jeff Bezos introduced the Fire Phone, most analysts slammed the pricing, saying that the online retailer needed to do more than simply mimic the competition.
“If the $199 on 2yr contract is all there is to Fire Phone pricing it will be a tough sell,” Carolina Milanesi, chief of research and head of U.S. business for Kantar WorldPanel Comtech, said on Twitter that day.
“Does the 99-cent price matter? Sure it does. But in the scheme of things, does it help? No, because you still have to have a contract,” Milanesi said in an interview today.
She pointed out that Apple, for example, gives away the iPhone 4S to customers who sign up for a two-year contract with a mobile carrier. The Fire Phone’s “unlocked” price of $449 is also identical to that of an off-contract iPhone 4S.
Amazon missed its chance to make a splash months ago, Milanesi argued. “This price then would have sent a different message,” she said. “It would have made a difference because at the time [mid-June] there was not a lot going on. But to do this the day before Apple announces its new iPhones, and right after Samsung showed off its Galaxy Note 4 and Note Edge?”
Amazon.com Inc has acquired live-streaming gamingnetwork Twitch Interactive for about $970 million in cash, reflecting Chief Executive Officer Jeff Bezos’ vision to transform Amazon into an Internet destination beyond its roots in retail operations.
The deal, jointly announced by the two companies, is the largest deal in Amazon’s 20-year history and will help the U.S. e-commerce company vie with Apple Inc and Google Inc in the fast-growing world of online gaming, which accounts for more than 75 percent of all mobile app sales.
The acquisition involves some retention agreements that push the deal over $1 billion, a source close to the deal told Reuters.
“Twitch will further push Amazon into the gaming community while also helping it with video and advertising,” Macquarie Research analyst Ben Schachter said in a note.
Twitch’s format, which lets viewers message players and each other during live play, is garnering interest as one of the fastest-growing segments of digital video streaming, which in turn is attracting more and more advertising dollars.
The deal, expected to close in the second half of the year, is an unusual step for Amazon, which tends to build from within or make smaller acquisitions. Tech rival Google was earlier in talks to buy Twitch, which launched slightly more than three years ago, one person briefed on the deal said.
Neither Amazon nor Twitch would discuss how the deal came together or comment on Google’s interest.
In an interview, Twitch Chief Executive Officer Emmett Shear said the startup contacted Amazon because its deep pockets and ad sales expertise would allow the startup to pursue its strategic objectives more quickly.
“The reason why we reached out to Amazon, the reason I thought working for Amazon, having Twitch being a part of Amazon, would be a great idea for us (because) they would give us the resources to pursue these things that we honestly already want to pursue and they’d let us do it faster,” Shear said.
While the in-house platform is initially planned to replace ads supplied by Google Inc on Amazon’s own website, the new system could challenge Google and Microsoft Corp’s advertising business in the future, the newspaper cited the people as saying.
Amazon’s system would resemble Google’s AdWords, and is planned to make it easier for marketers to reach the company’s users, the newspaper reported the people as saying.
The retailer is also building a tool that would help advertising agencies buy in bulk for thousands of advertisers, the Journal said, citing the people.
Amazon is known as a sleeping giant in the ad industry because it has rich consumer data but has been tentative about using it for a lot of advertising.
The company already has an advertising service it employs chiefly on its own website.
Amazon did not immediately respond to requests for comment.