By a 3-2 vote, the Federal Communications Commission's Republican majority voted yesterday to supplant local regulation of television delivery services with their own rules. The move is expected to speed the entry of Verizon, AT&T, and other telcos into the turf of cable and satellite providers. Congress had been about to enact legislation with new video franchising rules until the regime change of the November elections. Now Democrats like Reps. Ed Markey (D-MA, new chair of the House Subcommittee on Telecommunications and the Internet) and John Dingell (D-MI, new chair of the House Energy and Commerce Committee) are pledging to take a close look at the FCC action in 2007. Along with the U.S. Conference of Mayors, other local-government associations, and various media watchdogs, they question whether the FCC had the statutory authority to change the rules. FCC chair Kevin Martin says telco TV will increase competition and lower rates for consumers, pointing to his agency's 2005 study on cable rates, which showed they had increased 93 percent over the previous decade. Not so, says Harold Feld of the Media Access Project: "The other guy just gradually raises his price...rather than having the higher price come down to the competitor's level." Overshadowing the cost issue is the equal-access issue: Can the telcos be counted on to "build out" to every home in a community under the new rules, as the old framework of local franchising and regulation had required them to do? The telcos have their own good cop, bad cop routine going on this subject. There's your hot topic for the New Year.
If you're looking to buy an LCD HDTV for an unprecedently low price, 'tis the season to be ecstatic. The 2006 holiday shopping season is the best in history for TV buyers in general--and, thanks to slipping profit margins, one of the worst for retailers. As I'm writing this, Amazon is selling 32-inch models by major names below the psychologically significant $1000 mark. A Panasonic goes for $979 and a Samsung for $939. I won't link to them because these things change from moment to moment, but you get the idea. So why is the Justice Department--and its brethren in Japan and South Korea--investigating LCD manufacturers for price fixing? The problem is not with TVs or other finished products but rather with LCD components. Their makers are accused of cutting output to keep prices high. And eventually that will affect pricing of TVs, laptops, and other LCD-driven products, even if it doesn't seem to be doing so now. Companies under investigation include Samsung, Sharp, NEC, AU Optronics, LG Phillips, and Chi Mei Optoelectronics; Matsushita and Sony have not gotten the fishy eye.
If you want to predict the future of the music industry, don't just talk like a pirate. Think like a billionaire. According to Mark Cuban, owner of HDNet and the Dallas Mavericks, the music download business may be in for a major consolidation. Forget about iTunes and the Zune Marketplace, he says. Instead look at what Google has just done in the video file sharing realm: Pay $1.65 billion for YouTube and offer the television networks an estimated $100 million for the right to use portions (as opposed to all) of their programming. Cuban likens it to the moment when Microsoft took over the desktop by selling Office as a $99 upgrade back when word processors, spreadsheets, etc. sold for $500 each. Then he crunches the numbers: If Apple sells a billion tracks a year for 99 cents each, and pays 70 cents per song to the music labels, the music industry gets $700 million, and the biggest labels get $575 million of it. But what if deep-pocketed Google offered that same $575 million to the major labels for the right to use just some of their content free--not their whole catalogues, just hot songs and clips? After all, music executives are already openly rebelling against Apple's rigid pricing. Cuban finishes with an intoxicating rush of speculative questions: "Would it be worth it to Google to pay $575 million and up per year to completely turn Apple upside down? To completely pre-empt their ability to sell iPods? To potentially introduce a new hardware device, or partner with someone who has one? To sell advertising around the music rather than the music itself? Is there a traditional Google arb here of 70 cents per song vs. 70 cents of advertising around the song? Could it sell that much advertising online to justify giving the music away?... Could [Microsoft] position the Zune as the de facto winner by spending $575 million per year with the music labels and giving the first billion songs away to Zune owners?"
Very often, home-theater-in-a-box speakers are something to be hidden on the shelves or, at the very least, put by a work of art that takes the visual emphasis away from the silver plastic box. With the Philips MCD735/37 Micro Theater, that work of art will have some fierce competition. All of the speakers—four satellites, a center, and a subwoofer—have a wood finish that adds a warm feel to the unit and might blend into a room more easily than the usual silver found with most systems. Adding to the distinctive look is the two-module component setup. The system comes with a top-loading DVD player that is designed to sit on a separate power amp. Included is a stand meant to minimize vibration and overheating from the player and the amp. When a disc is playing, a blue light illuminates the disc. While it's elegant looking, the extra light could be a distraction while you're watching a movie, so you'll need to take system placement into consideration. Another reason placement is an important consideration is due to the top-loading DVD player. The player's clear lid stylishly swings up to allow access to the disc but requires space above the unit for the lid to open.
Sony's entry-level home-theater-in-a-box, the DAV-DX255, manages to fit a couple of surprises into its relatively low price point of $300. For one, it can hold five discs at a time that are slot loading instead of carousel loading. It can also play SACs. Yes, you read that right. This $300 system can play that beloved Sony-backed audiophile format—Super Audio Compact Disc. We could talk about the pluses and minuses of using a $300 system to listen to SACDs, but, no matter what, SACDs will sound better than regular CDs. To complement its ability to read SACDs, the player will also recognize a myriad of other formats, including burned DVDs, MP3s, and VCDs.
DVD, DVD+R/+RW, DVD-R/-RW, CD, CD-R/-RW, MP3, WMA, VCD, SVCD, and JPEG; HDMI with HD upconversion
Includes two front speakers, two surround speakers, one center-channel speaker, and one subwoofer
DVD/CD changer
RCA's RTD258 is full of surprises. There's a front-panel USB connection that you can use for most MP3 players, thumb drives, or digital cameras to play music or display pictures. There's also an included HDMI cable. What could this cable possibly be for, you might ask? Why, it's for the upconverting DVD player that has an HDMI output. If your television isn't as new as this system, you can connect the two with a component cable, although that is not included.
Even though this format war is a pain in the butt, I have to admit that it's funner to come in to work than it's been in years. I'm getting a charge out of seeing the hardware and seeing my favorite movies come out in HD on a silver disc that I've probably not felt since my Laserdisc collection gave way to DVDs back in the late 90's. To the cynic the next-gen HD formats are an Enron-esque scheme to perpetuate royalty streams and to keep selling movie libraries over and over (and over) again. I acknowledge all that, and say, "hooray!"
A music store dating from the age of the wax cylinder is threatened with closure in Cardiff, the capitol of Wales. Spillers was founded in 1894 and has survived the 78, the LP, the 45, and the CD (and still sells all but one of those formats). In fact, even in the new era of downloads, the beloved shop has been holding its own. What's threatening to engulf it is not technological, but economic, change. Efforts to attract investment to the city have succeeded a little too well, with two giant shopping developments opening up near Spillers. If the landlord follows through on his threat to raise the rent, owner Nick Todd--who left his secure bank job 31 years ago for a job at the shop--will have to close. Petitions are flying around. One has attracted signatures from half of the Welsh National Assembly (would that our own Congress were so hip) and another has garnered 2000 other signers. Says Todd: "If it all goes belly-up we've had a great time. I'd still rather own Spillers than Virgin." (Click here and scroll halfway down for Wes Phillips' tribute to Tower Records. I had no idea that the hundreds of $2 classical LPs I'd bought at the Tower Annex were stocked by "Analog George" Stanwick.)