Stories

Why ‘Microsoft vs Mankind’ still matters

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For all but three of the past 17 years, Microsoft has been involved in antitrust litigation with government agencies. That’s enough to wear anyone down. But as Europe’s highest appeals court delivered its judgement on Monday, I did notice some ennui – not from dogged old hacks, but from a new generation of pundits.

Take this example from former teenage dot.commer Benjamin Cohen – who was six when FTC first trained its lawyers on Redmond. After taking a pop at the at “anti-Microsoft lobby”, he declared on the Channel 4 News website:

The judgement is based on an old case and in many ways an old world – where Microsoft really was the dominant player in information technology

Stop kicking the kindly old man in the Windows outfit, he said.

It’s hard for it to have too much relevance today.

You’d think from this brilliant piece of insight, that there is hardly anyone left who uses Microsoft Windows or Office. Maybe, like the Acorn Archimedes, it’s a hobbyist system lovingly kept alive by a few, devoted enthusiasts! Benji even sounded slightly resentful at being torn away from Facebook (or Sadville) for a few minutes, to write about this piece of computer history.

But the question of “how we deal with Microsoft” is more relevant than ever for two very important and reasons: the second follows from the first.

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Rick Rubin’s subscription strategy: Right idea, Wrong price

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The record producer and co-founder of Def Jam has only been “co-head” of Sony’s Columbia Records since May, but he’s already setting about destroying the old business so a new one can be built in its place.

It remains to be seen how effective he will be, but for now Rubin is prepared to say what seasoned executives think, but can’t say out loud. And he spelled out the future of the record label in a lengthy profile in this week’s New York Times:

“Columbia is stuck in the dark ages. I have great confidence that we will have the best record company in the industry, but the reality is, in today’s world, we might have the best dinosaur. Until a new model is agreed upon and rolling, we can be the best at the existing paradigm, but until the paradigm shifts, it’s going to be a declining business. This model is done.”

Rubin advocates a subscription model instead. Not one with a capped number of discrete downloads, but one where music “will come anywhere you’d like … a virtual library accessible from your car, from your cellphone, from your computer, from your television. Anywhere.”

Once that’s accepted, the music business will be much bigger than it is today, he believes.

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Nokia: Don’t bet the house on content

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At times you can feel sorry for Nokia. The company is damned when it dares to plan for the future, and it’s damned if it doesn’t.

But that illustrates the depth of its dilemma. Today, Nokia is phenomenally successful in one business – handsets – which generates £27bn ($54bn) a year, with a margin of between 15 to 20 per cent.

However, Nokia relies on a small number of powerful customers as its route to market. This isn’t a problem for every business. If you sell fighter aircraft, you know who your handful of customers are, and can schmooze them directly. If you sell bangles from a market stall, you can choose which market you sell from. Nokia doesn’t have the luxury of either: its channel is its market.

And “getting from here to there” is the problem.

At great expense last week, Nokia began to imagine itself as a very different kind of company: a vertically integrated services business. Mobile users would flock to the company’s new portal, Ovi, for games, music, information and “social” interaction. You might call this a “post-operator” world, but it’s also a “post-Nokia” world, as it presumes that both data and devices are commoditised. It’s a Plan B.

However, the strategy takes today’s complex mobile data eco-system and promises to torch it. Today, there’s room for a Real Networks selling games or ringtones, for example, or an AQA providing an answers service. Nokia’s Ovi portal effectively declares war on all these smaller service providers. That can be considered bad manners (or a business necessity) – but it isn’t fatal to Nokia’s plans. It’s the biggest, would-be service companies who are the most threatened.

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One-Click™ colonialism

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The music industry has a long and shameful history of robbing black artists of their rights. Now along comes some new software that will help speed up the job. Think of it as a sort of 1-Click “non-payment” system.

Liblicense is a project that Creative Commons hopes to integrate with MIT Media Lab’s OLPC, or One Laptop Per Child initiative. That’s the rubbishy sub-notebook designed for developing countries, that developing countries don’t seem to want very much. (Shockingly, the ungrateful recipients seem to prefer real computers).

The genius of the move is that instead of needing to hire shifty lawyers to bamboozle artists out of the right to be paid, Creative Commons makes the process not only voluntary, but automated, too. Liblicense will greatly ease the process of assigning a Creative Commons license to creative material straight from the desktop.

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Smart radios are still pretty dumb

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More than three years ago, your reporter got a good taste of how miserable technology utopians can be. It was at Intel’s Developer Forum in San Francisco, and the debate was about liberating analog TV spectrum for exciting new digital uses. The analog switchover is slated for February 2009. On behalf of Microsoft, Google, and … Read more

Google Health offers reputation massage

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“Fire the publicist. Go off message. Let all your employees blab and blog!” fantasised the writer Clive Thompson in a recent WiReD magazine cover story.

“The name of this new game is RADICAL TRANSPARENCY, and it’s sweeping boardrooms across the nation,” burbled the mag.

But the perils of allowing employees to “blab and blog!” were splendidly illustrated over the weekend by Google.

“Does negative press make you Sicko?” asked Google health account planner Lauren Turner. She was referring to the new documentary by left wing demagogue Michael Moore about the US health provision.

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‘Fucked’ record companies in ‘cataclysmic’ meltdown – Tim Clark

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As some of the biggest figures in the music business weighed in on the future of music this week, there were very mixed views on its future.

“If Ford’s revenues were down 40 per cent, the shareholders would be revolting,” said Tim Clark, former Island Records MD and co-founder of management company IE Music, whose roster includes Robbie Williams.

The latest CD revenue figures suggest 40 per cent declines in some markets. “Their model is fucked. It is. Physical revenues are going down like nobody’s business and it’s cataclysmic,” Clark told a panel at the London Calling music expo at Earl’s Court.

Clark hears the sound of pigeons are coming home to roost, and outlined a post-major label future that would be a lot more flexible.

“Deals have been struck with ISPs, but I’ve yet to hear of a single penny going back to an artist. Leaving aside the black boxes, is it anybody’s surprise that an artist doesn’t trust the record company?” he asked.

“Record companies deserve to be attacked for many of the things they’ve done,” he added. “There are great A&R people and great marketeers at these companies, but they haven’t been serving artists [or] fans over the years.”

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Psion: The story of the Last Computer

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This long (40-page) history of Britain’s last computer company, Psion, was written over four days. It’s the longest piece The Register has ever run, we made it available as a PDF (for a small fee). Included are full transcripts of interviews with David Potter, Martin Riddiford, Mark Gretton, David Tupman and Nick Healey. (Charles Davies … Read more