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TITLE: Take out the Bulky Middleman

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Microsoft admits RT was a flop, Ready to pay again for all your iOS apps?, Sony prepping camera attachment for phone http://live.twit.tv/GUEST: Len Peralta, Internet Cartoonist
LOWER THIRD URL: lenperalta.com

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Today's date

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This is 'Tech News Today' for Monday March 30 2015

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Welcome to Tech News Today, I'm Tom Merritt --- I'm Sarah Lane --- I'm Iyaz Akhtar -- I'm Jason Howell

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We'll keep you up to date on the most important stories in the tech world, and put them in context for you.

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We start with the top 10 stories of the day in the News Fuse

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http://bridgeurl.com/tnt799/all

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News Fuse - Top 10VIDEO

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tmApple acquired crowdsourced location data company Locationary. The deal includes Locationary's technology and team. Apple did not disclose a price when it confirmed the deal to All Things D. The Toronoto-based company helps keep business information and location data up to date.http://allthingsd.com/20130719/apple-acquires-local-data-outfit-locationary/

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slGoogle's second quarter came in below analysts' expectations, but still managed to be impressive - the company consolidated revenue of $14.1 billion (that’s up 19 percent from the year-ago quarter), net income of $3.23 billion, and non-GAAP earnings per share of $9.56. Analysts were hoping to see Google’s revenue jump at least 20 percent year-over-year, and the company only missed that by about 1 percent. Google’s stock initially jumped to an all time high on Monday, and after the revenue results dipped about 5% in after-hours trading.http://techcrunch.com/2013/07/18/google-misses-estimates-in-q2-with-14-1b-in-revenue-net-income-of-3-2b-and-eps-of-9-56/

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iaMicrosoft reported its earnings and they were below expectations. The company took a $900 million charge for its inventory of Surface tablets. Microsoft earned 66 cents per share (not including the Surface charge), but analysts expected 75 cents per share. An analyst at Pacific Crest Securities said this was the biggest miss they've seen from Microsoft. Any silver linings in this story? Revenue was up 10% to $19.9 billion, but Wall Street expected $20.7B. http://www.reuters.com/article/2013/07/18/us-microsoft-results-idUSBRE96H19K20130718

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tmMichael Hayden, former head of the US CIA told the Australian Financial Review that if Huawei would have been allowed to build the backbone of telecommunications networks, it "would have shared with the Chinese state intimate and extensive knowledge of the foreign telecommunications systems it is involved with." Huawei spokesman Scott Sykes told Bloomberg, “These tired, unsubstantiated, defamatory remarks are sad distractions from real-world concerns related to espionage, industrial and otherwise."http://www.bloomberg.com/news/2013-07-19/huawei-denies-spying-claims-of-ex-cia-director-michael-hayden.html

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slKevin Paulsen explains in a post on Wired that MIT lawyers are filing a motion to intervene in his Freedom of Information Act (FOIA) lawsuit over thousands of pages of Secret Service documents about the late activist and coder Aaron Swartz.He explains that In February, the Secret Service denied his request for any files it held on Swartz, citing a FOIA exemption that covers sensitive law enforcement records that are part of an ongoing proceeding. Paulsen says MIT is afraid the release of Swartz’s file will identify the names of MIT people who helped the Secret Service and federal prosecutors pursue felony charges against Swartz for his bulk downloading of academic articles from MIT’s network in 2011.http://www.wired.com/threatlevel/2013/07/mit-swartz-intervene/all/1

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iaErik Voorhees, no relation to Jason Voorhees, just sold a bitcoin gambling site called SatoshiDice for 126,315 bitcoins. That translates to over 11 million U.S. dollars. The identity of the buyer isn't known, but BitCapital's John Bridge was surprised that it sold for such a high amount and believes the site was picked up by an existing gaming institute.http://gigaom.com/2013/07/19/someone-just-sold-a-bitcoin-business-for-11-4m-its-a-first-but-the-buyers-anonymous/

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tmNPR reports that 24-year-old Stephen Balaban is developing an alternative operating system for Google Glass. Balaban was one of the developers behind a facial recognition app for Glass. Google banned the app after several people including US government officials, expressed concern over widespread facial recognition. Google Glass's Explorer edition comes with restrictive terms of service that among other things, let Google deactivate the device. http://www.tomshardware.com/news/Google-Glass-Facial-Recognition-Stephen-Balaban-Device-Specific-Addendum-Explorer,23577.html

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slVLC for iOS is back in the app store. VideoLAN's latest version of the multi-format player and decoder runs on iOS 5.1 or later, and supports the iPhone, iPad, and iPod touch. It's open-source and it's code is now available online, bi-licensed under the Mozilla Public License Version 2 as well as the GNU General Public License Version 2 or later. The MPLv2 is applicable for distribution in the App Store, which was a missing element and why Apple pulled VLC from the App Store back in January 2011. http://thenextweb.com/apps/2013/07/18/vlc-for-ios-will-return-to-the-app-store-on-july-19-full-re-write-open-source-licensed-under-mplv2-and-gplv2/

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tmLeap Motion controllers should arrive in stores next week, and the New York Times is on it! The New York Times Idea Lab created an official app that lets you page through stories with a wave of your hand. Holding your finger up Harrison Ford style scrolls through a menu of news stories, then you swipe to select a particular story. Once you're done just shake your hand to send the story back into the carousel of headlines.http://www.pcmag.com/article2/0,2817,2422002,00.asp

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iaAndroid users, you can be making money just by unlocking your phone. A new app called "Locket" launched today - it places ads on your lock screen. When you swipe to unlock your device, you get paid. The app doesn't force you to view full ads - if you want to watch something like a trailer, you'll have to actively choose that. Regardless of which way you swipe, you get paid a whopping 1 cent per swipe - and that's capped at 3 cents per hour. http://techcrunch.com/2013/07/18/locket-puts-ads-on-smartphone-lock-screens-pays-you-to-use-your-phone/

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Introduce GuestGUEST: Len Peralta, Internet Cartoonist
LOWER THIRD URL: lenperalta.com

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Discussion Stories

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tmMicrosoft Finally Reveals That No One Wanted The Surface RThttp://techcrunch.com/2013/07/18/microsoft-finally-reveals-that-no-one-wants-the-surface-rt/

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Microsoft profit misses as Surface tablets languish; shares drophttp://www.reuters.com/article/2013/07/18/us-microsoft-results-idUSBRE96H19K20130718

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$900 million charge for unsold Surface RTs
- revenue rose 10% ($19.9 billion) short of expect ($20.7) buoyed by MS Office, profit of 59 cents a share (expect 75)
- Windows sales rose on deferred revenue
Q: So "devices and services company when all you revenue comes from software? How's that going to work?

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15

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slWould you pay again for iOS 7 versions of your favorite apps?http://www.imore.com/would-you-pay-again-ios-7-versions-your-favorite-apps

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- ios 7 beta 3 is out, rene ritchie predicts devs may use this opp to rebuild app from scratch/keep up with new dynamic, make users pay again
- links to Gedeon Maheux of the Iconfactory's blog (make Twitteriffic): "I suspect there will be a surprising number of developers who will use the launch of the new operating system to completely re-boot their app, and why not? The visual and interactive paradigms iOS 7 mark a natural breaking off point and a perfect opportunity to re-coup costs. Some existing paid apps might even adopt an iOS 7 only strategy which means they’ll have no choice but to charge again."
- likens an updated app like an mp3 remix... pay again, it's different
q: numbers showing paid apps on the decline, is this a dangerous strategy for devs? opp for other OSs?

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iaSony reportedly close to releasing a high-end camera attachment for smartphones http://www.theverge.com/2013/7/19/4537632/sony-wireless-camera-lens-for-smartphones-rumor

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Updated Post: (SR5) Sony will launch lenses with built-in imaging sensor!
http://www.sonyalpharumors.com/sr3-honami-smartphone-uses-a-magnetic-mount-for-nex-lenses-and-a-curious-lens/SOURCE

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- Sony Alpha Rumors reports that Sony is planning a "lens camera" accessory for mobile devices
- The device would not have a screen of its own and looks like a lens you'd attach to a DSLR except this lens would have a built-in imaging sensor
- the "lens camera" would transmit images via NFC and WiFi to a tablet or smartphone
- It could be mounted to one of those devices or you could use it separately

- It would use the same sensor and lens as the Sony RX100 II - which uses a 1-inch 20.2MP Exmor R sensor and f/1.8 Carl Zeiss lens
- Sony Alpha Rumors rates its rumors on a scale of 1 to 5, with 5 being "almost certainly correct" - the site says it's a 5 "confirmed rumor coming via our top sources."
- The site also reports that there will be a second model with a smaller sensor and a larger zoom

Q: If this product is real, is this awesome?

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ADhttp://proxpn.com/twit

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tmGoogle revenue in line, income misses badly in Q2http://gigaom.com/2013/07/18/google-revenue-in-line-income-misses-badly-in-q2/

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Google Results Show Struggle With Mobilehttp://www.nytimes.com/2013/07/19/technology/google-misses-expectations-for-revenue-and-profit.html

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Google shares set to open lower on margin decline, target price cutshttp://www.reuters.com/article/2013/07/19/us-google-results-research-idUSBRE96I0ET20130719

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- Revenue $14.1 billion up 19% (expect $14.42) EPS $9.56 (Expect $10.78)
- cost-per-click 6% lower than 2012
- Google enhanced campaigns combine buys across platforms and only allow buyers to opt-out of cell phones
- Google says results of this change were not reflected int his quarter
- Clicks on ads up 23% attributed to increased mobile
- Google says websites without good mobile sites may fall in search rankings
- Motorola contributed operating loss of $342 million
Q: Desktop search is maturing and now Google is causing the same concern as Facebook. Can it profit on mobile?
- BMO Capital Markets, JP Morgan, Deutsche Bank and Raymond James cut their price targets on Google's stock
- "... Investors should assume continued margin erosion as new investments will never match the margins of the core search business," BMO analysts
"Enhanced Campaigns is the biggest change in the Google ad platform to date and thus it will likely take 6-12 months for the positive impact to show in the numbers," Piper Jaffray analyst Gene Munster

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slU.S. Music Sales Down As Streaming Up 24% To 51B Tracks In 6 Months; Harlem Shake Bumps Its Way To The Tophttp://techcrunch.com/2013/07/19/u-s-music-sales-down-as-streaming-up-24-to-51b-tracks-in-6-months-harlem-shake-bumps-its-way-to-the-top/

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Music piracy 'rises' after festivals, says Spotify studyhttp://www.bbc.co.uk/newsbeat/23372783<-- SARAH, added this just publsihed 9:00AM. Use it if you wish - tm

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- Nielsen numbers on streamed music: first six months of 2013, streaming music up by 24% to nearly 51B streams, overall sales of albums and track equivalents were down by 4.6% over a year ago, and are now at 210M units.
- most popular streamed track was Harlem Shake, viral video/song. in six months to June 30, Harlem Shake was streamed 438M times, #2 was Thrift Shop from Macklemore and Ryan Lewis at 187M streams.
- While CD sales were down by 14.2% to 78.2M units, digital sales were up 6.3% to 60.8M units.
- digital albums now at 43% of all album sales — up on the 38% figure a year ago, but actually down compared to the figures released by Nielsen six months ago, when digital took a 56% share of all sales.
- 2.9 million vinyl albums sold, up 33.5% on a year ago.
q: do artists have any choice but to suck up the new way of doing things?

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37

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iaHow Google or Apple Could Make Web TV a Reality: Spend Billions on the NFL http://allthingsd.com/20130719/how-google-or-apple-could-make-web-tv-a-reality-spend-billions-on-the-nfl/

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- Peter Kafka wrote a letter to Apple, Google, MS, (and Amazon?) explaining that one of them should seriously look into purchasing the rights to the NFL to make web tv a reality
- He says that the tech players are "re-selling TV's leftovers or floating proposals that would end up replicating the existing system."
- Kafka says to go after the NFL, particularly "Sunday Ticket."
- DirecTV's four-year deal expires at the end of the 2014 season and he notes that the company pays $1B per year for Sunday Ticket
- He cites Rupert Murdoch's Fox network that legitimized itself with an NFL deal.
- Kafka says to assume a cost of $1.5B a year. The companies would lose money on the deal (just like DirecTV), but the upside is making yourself into a major player
- He compares the cost to other projects. At $1.5B a year, it's $6b for four years. That's 1/2 of Google paid for Moto. It's 4% of Apple's cash pile

Q: NFL on an internet box - is this the only way these tech companies will make a splash in TV?

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43

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RandomizerWe will narrow this down to one story, put your initials to the left of the story you like bestVIDEO

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George R.R. Martin smashes up a guitar; Neil Gaiman approveshttp://thewertzone.blogspot.com/2013/07/george-rr-martin-smashes-up-guitar-neil.html

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CalendarVIDEO

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Leap Motion controller set to arrive Monday July 22, some pre-orderers report their items have shipped!

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Open source conference OSCON kicks off in Portland Monday. Look for Floss Weekly's Randall Schwartz there!

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INCOMINGVIDEO

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Email

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Hi,

I was confused by your description of the Ouya campaign for developers, so I went and read a CNet article describing it and it makes more sense to me now. Ouya is not starting a Kickstarter campaign, but instead, they are matching funds for game developers who raise money using Kickstarter, as long as they meet their goal and they raise at least $50,000. So Ouya is basically giving a big thank you to Kickstarter and developers by encouraging developers to raise funds on Kickstarter.

--Alan

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sl

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Hi guys,

I wanted to comment on the in app payments and free apps discussion on yesterday's show because I don't think you mentioned gaming, which I believe is the area this model is having the most worrying effect on.

The volume of free apps has forced developers into a corner, where they feel they only way to get a chance of being seen is to be free. But it also means they have to centralise in app payments as a core mechanic of their app from day one in order to eventually make money. This isn't too bad for standard apps, but for games it can be devastating. It's forcing artists and designers to become salesman, designing games around selling and reselling themselves, and that's not conducive to great or memorable relationships with a franchise.

One game (which I think I heard about from Sarah on iPad Today) is Bombcats, which is a great physics game utterly destroyed by game mechanics that exist only to sell ways to beat the levels more easily. The developer blogged about how he realised this ruined his game, even though he felt forced by the marketplace to do so, and for the Android release the game will cost money to download and feature no in app payments.


Nate

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