Music Industry Optimistic About Apple-Beats Deal

When Cortez Bryant decided to negotiate a headphones marketing deal for his clients Lil Wayne and Nicki Minaj a few years ago, he turned down more money from other more established companies to sign with Beats By Dre for a simple reason.

"There was a bunch of history there, so at the end of the day I took less upfront money to be part of this deal with people who understood pop culture" Bryant said. "I try to stick to that because if I lose touch with pop culture, then I'm out of the music business."

A day after the sale of Beats By Dre on Wednesday to tech giant Apple Inc., members of the music industry were abuzz about what the $3 billion deal might mean for an area thought to be in an irreversible decline. Label executive Jimmy Iovine and business partner Dr. Dre's move to Apple has those who make their money on music expecting changes that are generally positive for the overall business — though maybe not for every artist trying to make a living.

"It's all wins," said Daniel Glass, owner of Mumford & Sons label Glassnote Records. "It's a win for everybody and the fact is the value of a copyright, a master, went up a lot. Think about it: The perception and value of music went up because of the amount of hands this will be in."

The industry inadvertently opened the door for file sharing when it refused to sign a deal with Napster at the turn of the century. Few people pay for music, and with physical and digital sales declining, the value of music has continued to decrease as members of the industry resisted the new — but different — revenue model from streaming.

In the confusion, some forgot the power of music. It's now about more than the song, something innovative thinkers like Iovine and Dre have never forgotten.

"Apple wouldn't have been built, at least not the way it was, without music, without the iPod, without iTunes and everything else that follows since then," said Billboard deputy editor Yinka Adegoke. "We shouldn't forget that. It's quite clear Apple didn't forget that. There is great value to music and this deal is a great reminder of that. Even if you don't buy music directly, this shows the importance of music in the modern world."

The deal, which Adegoke calls a "game-changer," happens at a time of great movement in the business. Only recently have record labels, artists and managers started to accept the subscription streaming model, which pays artists per track play rather than in a lump sum when an album or track is sold.

With digital sales starting to decline, Apple added a streaming radio component to its digital sales catalog, but was still left out of the subscription market. The addition of Beats not only gives the company cool hardware to package with its devices, but also gives it a streaming service, recently launched with much media attention, without building one from scratch.

Spotify's success — the streamer recently announced it had reached 10 million paid subscribers — the Beats-Apple deal and YouTube's impending entry into the market have insiders looking differently at the inevitability of streaming. Doc McGhee, manager for Kiss and Darius Rucker, said the movement has changed the minds of many label executives, something akin to "turning a 700-foot ship."

It might be scary to throw your lot in with a startup, but Apple brings a long track record of success. As McGhee puts it, "They're the Tiger Woods of tech. They're not winning as much, but they're still winning more than everybody else."

Apple has the track record — and current customer base — to engender trust as its current and future partners navigate the new music world.

"This deal will make music streaming go mainstream," Adegoke said. "You just have to think about Apple's access to 800 million credit card accounts, hundreds of millions of devices, the IOS ecosystem. We knew this was coming, that streaming would be the access for music, but we needed something like this to happen so the average person will see that actually paying $10 a month for music isn't that big of a deal."

Many expect a rapid consolidation or change in the music world as the giants take the field. For some, the decision on where to place your trust — or your bet — got a lot easier Wednesday.

"I think this tips it Apple's way because over the years iTunes has been known as the platform to go access music and to get it digitally," Bryant said. "I think they're just going to add on to what they've already accomplished, taking people away from physical sales, being ahead of the game with their devices and linking it to the iTunes store so you can purchase music and movies, and I think this will just add to the portfolio. I think the Apple brand, because it's so strong, will knock those guys out."

Bryant believes the deal will allow independent and boutique labels more access to the playing field, but others think the move may help stabilize the major labels.

"People are beginning to understand this new valuation of music, that it's not all about how many records you sell," Adegoke said. "It's really about being smart and leveraging your relationships in the music business, which is basically what Jimmy Iovine and Dr. Dre have done."

McGhee said the deal doesn't solve a basic problem in the music industry: Streaming revenues aren't always making it to the artists in significant ways. He says 10 million streams bring a songwriter about $300 in royalties. If that keeps up, there will be dire trickle-down consequences.

"What I believe is going to have to happen is if artists and writers cannot make any money, they will go to a different field to make money and we're going to lose a lot of creative people, a lot of songwriters," he said.

"... They're teaching the world to stream and not to buy. They're saying you don't need to own anything anymore, you don't need to deal with a CD anymore. All you have to do is say to Beats or Apple, 'I'm having a country barbecue today, send me a playlist.' You never have to physically own anything. It's just all renting. They just don't want to give much of their rent to the artist. They have to."

Glass believes Apple's entry into the market may quickly change things, including the fair pay argument. Competition is always good, and many things must still shake out for the picture to come into focus for the industry.

"I think seeing all these competitors now in the streaming business just makes it better," he said. "Amazon's making strides. We haven't talked about YouTube yet. Where's that monster? That's a biggie. What about when that one gets loose?"

Motorola to Close Texas Smartphone Factory

FORT WORTH, Texas — Google's Motorola Mobility handset unit announced Friday it will shutter its North Texas factory by the end of this year, barely a year after it opened with much fanfare as the first smartphone assembly plant in the U.S.

At the time, Google had explained its surprising decision by saying the plant's location in Texas would enable it to fulfill customized, built-to-order devices and deliver them anywhere in the U.S. within five days.

But sales of its flagship phone, the Moto X, have been too weak and the costs of running the plant too high to keep operations going, Motorola Mobility spokesman Will Moss said. Singapore-based international contract electronics manufacturer Flextronics Ltd. operates the plant.

Even though the concept of the smartphone was pioneered in the U.S. and many phones have been designed here, the vast majority of phones are assembled in Asia. The Fort Worth factory has allowed Google to stamp the phone with "Made in the U.S.A.," although assembly is just the last step in the manufacturing process, and accounts for relatively little of the cost of a smartphone. The cost largely lies in the chips, battery and display, most of which come from Asia.

The Fort Worth factory currently employs about 700 workers who assemble the Moto X smartphones for the U.S. market, Moss said. He declined to comment on whether Motorola would retain the workers.

Motorola Mobility will continue to develop the Moto X in Brazil and China, where the costs for labor and shipping aren't as high.

Google bought cellphone pioneer Motorola for $12.4 billion in 2012. Originally retailing the Moto X for $600, amid flagging sales, Google dropped the price to $399. Still, only a fraction of the units were sold compared to the Apple iPhone in the first quarter of 2014. The average selling price globally for a smartphone in 2013 was $335, according to Massachusetts-based researcher International Data Corp.

Nonetheless, Google reported its Motorola mobile segment generated $4.4 billion in sales in 2013, a 13 percent increase over the previous year.

The announcement of the plant closure comes four months after Google said it planned to sell the Motorola Mobility smartphone business to Hong Kong-based computer maker Lenovo for $2.9 billion. The sale is expected to close by the end of the year, according to a filing with the Securities and Exchange Commission.

Moss said Lenovo's acquisition of Motorola Mobility and the closing of the factory were not related.

San Francisco-based Internet analyst Kerry Rice of Needham & Co. said Google acquired Motorola more for its patents, which it has retained, and less for its production capacity.

"They wanted to give it a go as far as building in the U.S., but it was probably a stretch for them to take that on. Manufacturing is not their core competency and never has been," he said.

Microsoft Preparing To Jump Into The Wearables Market With Its Own Smartwatch

(Photo via Joe Raedle/Getty Images)

Microsoft is the latest technology giant preparing to jump into the wearables market, with plans to offer a sensor-rich smartwatch that measures heart rate and synchs with iPhones, Android phones and Windows Phones, Forbes has learned.

It’s a surprising development in the ongoing conversation about wearables that till now has been dominated by Samsung and Apple.

The forthcoming smartwatch will draw on optical engineering expertise from Microsoft’s Xbox Kinect division to continuously measure heart rate through the day and night, according to multiple sources with knowledge of the company’s plans, while the battery will last for two days, roughly on par with Samsung’s Gear Fit. The timeline for the watch’s release date is unclear but Microsoft could be gunning for as soon as this summer.

Crucially, it appears the watch won’t be tied to Windows Phone devices only, but will also work with both iPhones and Android smartphones.

A spokesman for Microsoft would not comment on the details. “We have nothing to share,” he said.

Still, early indications suggest the smartwatch may already be a step ahead from current fitness trackers like the Gear Fit, which requires users to turn on its heart-rate monitor. Microsoft’s device will track continuous heart rate over the course of a person’s day, sources say.  The watch will look similar to the Samsung Gear Fit and feature a full-color touch screen about the size of half a stick of gum, positioned on the inside of the wearer’s wrist. The unorthodox screen-placing appears to be aimed at making it easier and more private to view notifications.

A cross-platform smartwatch would represent another bold move by Microsoft CEO Satya Nadella to create a product that works across other rival platforms, not just Windows. His first public unveiling of a product in April was of a suite of Microsoft Office products that worked, for the first time, on Apple’s iPad.

Microsoft’s software and services need to be available on “all devices,” Nadella also said at a conference earlier this week. “It’s time for us to build the next big thing.”

While going cross platform may diminish the power of Microsoft’s software ecosystem, it does make business sense: Windows Phone has struggled to make a dent in smartphones and is forecast to have a 3.5% share of the global smartphone market by the end of 2014, while Android will dominate with 80.2% and Apple’s iOS with 14.8%.

“Microsoft needs to run across Apple and Android platforms,” said a recent research note from Nomura analyst Rick Sherlund which collated advice from industry peers on how Nadella should “fix” Microsoft. The company, which derived about half of its 2013 sales of $77.8 billion from Windows and Office software products, needs to make shifts as fundamental as IBM’s move towards becoming a services business, Sherlund said.

Moving into the wearables space would barely register on Microsoft’s bottom line for some time, but the market is just starting to heat up, with Apple poised to announce its first iWatch later this year and Samsung expected to launch a smartwatch in the summer that can independently make calls. Wearable device companies like Fitbit are Jawbone are meanwhile commanding valuations in the billions of dollars, with Jawbone having recently become the subject of acquisition rumors.

Though Microsoft’s hardware products have a spotty history, executives will be hoping a sensor-rich smartwatch can replicate the success of the company’s Xbox and Kinect divisions, rather than the failure of the Zune music player and struggles of Microsoft’s Surface tablet.

Optical engineers from Microsoft’s Kinect division, designers and data scientists have created a software platform to go with the smartwatch that will correlate data from the device’s sensors, according to sources, giving a more accurate read on heart rate and fitness.

Samsung Electronics is currently making a Big-Data push for health and wearables too. On Wednesday the South Korean company revealed further details on its open biometric data platform SAMI, which developers can access later this year to correlate data from wearable devices like the Gear, Fitbit and Jawbone.

Microsoft may want to do something similar with the data its smartwatch generates about wearers, perhaps taking advantage of insights in can glean from Outlook email and calendar traffic.

The company also appears to be going more mainstream with its first wearables play than initially thought. Reports surfaced two years ago showing Microsoft had been granted a patent for a wearable EMG device, and they suggested a band that senses muscle movements in the arm to control a wearer’s mobile devices.

Microsoft in 2012 was also rumored to be working on a wearable fitness accessory that tied with the Kinect Play Fit service, codenamed Joule. Then in March of this year the company reportedly spent $150 million on IP-related patents for headsets and a watch-like device from the Osterhout Design Group.

It now appears that Microsoft is working on a device worn on the wrist, and one that’s aimed at a much wider market: any fitness enthusiast with a smartphone, not just a device that works with the Kinect or Windows.

Being cross-platform might give a Microsoft an edge in retail outlets for carriers like Verizon and AT&T, the latter of which made $1 billion a year in revenue from selling wearables like the Fitbit and Jawbone, according to AT&T Mobility vice president David Garver. It might be easier for sales staff to pitch a Microsoft wearable as part of a contract bundle with any smartphone, or at least phones that aren’t made by Samsung or Apple. Verizon and AT&T are under increasing pressure from T-Mobile to find creative ways to keep contract prices competitive.

Continuous heart rate could also be an attractive sell for fitness enthusiasts and those in the health care space. Dr. Michael Blum, an associate vice chancellor for informatics at UCSF, says the rise of continuous biometric monitoring through wearables will lead to a new class of data for healthcare professionals to parse through, which Blum calls “novel vital signs.” Once basic measurements like heart rate are validated as accurate, clinicians from the health care space can start to take that data more seriously, he added.

On its own, though, some say measuring heart rate may not be a strong enough sell for wearables just yet, at least not until devices can make a value judgement or compelling correlations with that data.

By itself the data won’t necessarily help a wearable device pass the so-called “turnaround test,” says Mike Lee, co-founder of the popular nutrition tracking app MyFitnessPal. This test refers to a situation where someone gets half-way to a destination before realizing they’ve forgotten their device at home. If they turn back to get it, the device has passed the test.

Most people would turn around for their smartphones, but fewer would do the same for wearables or even the few like the Gear Fit that measure heart rate. ”The key is what you do with that data,” says Lee, “and how you bring it back to consumers.”

The Catch 22 for Microsoft and any software firm selling new insights into a person’s physical body, is that drawing truly useful conclusions also takes them down a slippery slope towards diagnosis — and the specter of being regulated by the FDA.

Third parties who are already regulated might be the answer in this case, and with a fitness-related smartwatch project, Microsoft could conceivably draw on its healthcare joint venture with General Electric, called Caradigm.

The population health company, which is 50% owned by Microsoft, currently workswith hospitals and doctors to manage patient health data and analyze risks like re-admissions. It’s unclear if Microsoft would want Caradigm to play a role in the future of its smartwatch, or if Microsoft will want to work with another regulated third party to offer fitness suggestions or light forms of diagnosis to the band’s future users.

The bigger picture is that with a continuous heart rate monitor, Microsoft would be moving wearable devices further ahead to “consumerized” healthcare. This is the trend in which people are increasingly circumventing the traditional health-care system with tools to diagnose themselves and, some argue, “own” their biometric data. (Ironically, it comes at a time when today’s technology-driven, sedentary lifestyle has also led to 2.1 billion people across the world being classed as overweight or obese, according to a study released today in the Lancent medical journal.)

In terms of self-diagnosis, people till now have simply Googled their ailments and followed a series of links to frightening articles about cancer. Now they can measure precise data about themselves and show it a machine, or another human being who may skirt the boundaries of the health care system.

For example, the online service HealthTap lets its more-than 1 million registered users post short, anonymous questions (limited to 150 characters) to a community of 40,000 doctors who can vote on each others’ answers. Users who pay a fee can upload their health records and other information to show those doctors.

Founder Ron Gutmann believes doctors of the future “will have to become data scientists” to properly analyze the stats coming in from multiple sources, such as heart rate and sleep data from wearable devices and nutrition data from apps like Runkeeper or MyFitnessPal. “Doctors will spend less time on the minutiae and spend more time on analyzing these streams of data,” he said.

 

'Tough sell' LG G3 snubbed by some UK outlets

The LG G3 arrives in 170 countries in coming weeks.

Nate Ralph/CNET

The LG G3 popped out of the LG cake last night with a dazzling screen, laser-sighting camera and all the high-end features you could ever need -- but as industry experts brand the G3 a "tough sell", it's been hit with a vote of no confidence from two major UK outlets.

The UK's largest phone network, EE, and Phones 4u, a high street phone retailer with over 600 stores, have confirmed to CNET they are not selling the new phone. Analyst Ben Wood of IHS suggests a crowded market is to blame: "The LG G3 goes head-to-head with other flagship devices such asHTC's One M8, Samsung's Galaxy S5and Sony's Xperia Z2, which most retailers have already ranged.

"So it's no great surprise that the G3 is not currently selected by EE and Phones 4u, particularly as there is growing evidence that smartphone demand is weakening."

 17 Photos

LG G3 shows off high-res screen, metallic back (pictures)

"LG's timing was always going to make the G3 a tough sell," continues Wood. "There's no doubt it's an impressive device, but when the channels already have several other flagship Android-powered smartphones in their range it's hard to make space for one more that in the eyes of consumers looks essentially the same."

"It's not uncommon for an operator to choose not to stock a handset," says industry analyst Ian Fogg of IHS. "Each operator has a certain number of slots in their portfolio and they try and ensure they have the key brands and handsets with a mix of capabilities to appeal to particular segments. For the leading brands like Apple and Samsung it's pretty straightforward, but the challenger brands have to compete for those slots -- and it's a very competitive market."

Spokespeople for EE and Phones 4U were unavailable to offer a reason for pooh-poohing the G3, or to confirm whether this is a temporary or permanent snub. It's not clear whether this is a stock issue, a lack of confidence in the phone, or simply a failure to reach an agreement with LG by the time of release. It's also unclear at this stage whether the phone will be available as soon as this wobble has been ironed out.

'Looks great on paper, but...'

Fogg is unconvinced the G3 can stand out from the crowd. "What LG has chosen to do is try and pick a different way to differentiate: Samsung wants to differentiate the Galaxy S5 on health and well-being with the heart rate monitor and apps, adding water-resistance as a secondary differentiator. With the Z2, Sony continues to differentiate on water-resistance, as well as Sony apps and content services. HTC differentiates with the One M8's industrial design, the metal finish, and innovation like the QuickCircle cover.

"Meanwhile LG is trying to differentiate on the laser autofocus camera and high-resolution quad-HD screen, but the challenge they face is, are those features people will care about?" Fogg asks. "Differentiators like design, heart monitors, and water-resistance are very visible, but will consumers actually see the difference in the G3's screen and camera?"

"LG has to prove it's got the right set of features to appeal to consumers and sell in volume. My concern," says Fogg, "is that LG may have chosen to differentiate on something that looks great on paper but is overshooting the needs of the market."

A spokesperson for LG declined to comment.

Not everybody has turned its back on the G3. Phones 4u's high-street rival Carphone Warehouse, which has over 1,700 stores, confirmed during the launch that it would stock the G3. "We are proud to be working with LG and offering the G3 to our customers," a spokesperson told me in a statement. "The G2 was one of the hits of last year, especially popular with tech-savvy consumers, so we know this will be another popular handset."

O2 and Three are the first UK networks to confirm they too will sell the G3 on contracts. In the US, carriers AT&T,Sprint, T-Mobile and Verizon have confirmed they will sell the phone.

Both Ben Wood and Ian Fogg acknowledge that EE and Phones 4u could still adopt the G3 if it takes off at other outlets, especially if LG throws some marketing money at the phone.

G3 price and release date

The G3 went on sale in LG's home turf of South Korea today, with 170 countries to follow in coming weeks. The phone reaches these shores on 1 July, with pre-orders open on 3 June. It's set to costS$868 in Singapore (US $691, £412) or $799 Australian dollars (US$736, £440).

In the UK the G3 is set to cost around £500, but the G3 has its work cut to compete with the Apple iPhone and Samsung Galaxy S5 -- especially if EE and Phones 4U's snub turns out to be permanent.

Lenovo Vibe Z2 Pro Tipped to Feature 6-Inch QHD Display, Snapdragon 801

Lenovo is tipped to be working on its next flagship smartphone and the successor to the Vibe Z, thought to be dubbed Vibe Z2 Pro, according to a report.

The alleged Lenovo Vibe Z2 Pro has been leaked in a number of images courtesy a Chinese publication. The alleged Vibe Z2 Pro is seen sporting a metal chassis which is said to be 7.7mm-thick.

The leaked images of the alleged Vibe Z2 Pro indicate that the handset will feature dual-SIM support; however we can expect this to vary depending on the market.

Further, the Chinese publication has also obtained some specifications of the unannounced Vibe Z2 Pro, including a 6-inch QHD (1440x2560 pixels) display; quad-core Snapdragon 801 processor clocked at 2.5GHz; 16-megapixel rear camera with OIS and dual LED flash; NFC support, and a 4000mAh battery.

Notably, in one of the leaked Vibe Z2 Pro images, the "Vibe" branding is seen on the rear panel, appearing to have replaced the Lenovo brand's logo completely. Unfortunately, there is no word as to whenLenovo will be releasing the alleged Vibe Z2 Pro globally.

(Also see: Lenovo Vibe Z Review | Pictures)

The Lenovo Vibe Z reached the Indian market earlier this year, and was launched at Rs. 35,999. The smartphone at launch ran Android 4.3 Jelly Bean out-of-the-box.

The Chinese handset giant recentlyannounced an Android 4.4 KitKat update for the Vibe Z to be rolled out in a phased manner starting from the last week of May.

The Android 4.4 KitKat update for the Lenovo Vibe Z will bring improved 4k video playback compatibility, as per the company. In addition, the update will also boost the UI transitions, such as adding widgets to the home screen easy.

Other features expected to reach the Vibe Z with the Android 4.4 KitKat update, include better management of the multi-window mode; enhanced notification access; wireless printing capability; new theme centre; automatic profile changer, and expanded accessibility APIs.

Sony sets up PlayStation plant in China

Japan's Sony muscles into China's gaming industry

Japan's Sony has signed a partnership in China to manufacture and sell its PlayStation consoles on the mainland.

The deal, formed as two joint ventures with Shanghai Oriental Pearl, gives Sony access to an estimated 500 million gamers in China.

China has had a ban on gaming consoles since 2000, citing their adverse effect on the mental health of young people.

But in January, the government said it will allow foreign firms to manufacture and sell consoles.

China's gaming market, which is currently dominated by PC, mobile and online games, is seen as a key growth area for console makers.

The two partnerships are both with Shanghai Oriental Pearl, one gives Sony a 70% share and the other a 49% stake and both will operate out of Shanghai's free trade zone.

In a statement to the Shanghai Stock Exchange, an executive from Shanghai Oriental Pearl says: ""The joint venture will be based on the relevant state policies and will introduce quality and healthy video games that will adhere to China's national conditions as well as the tastes of Chinese gamers.

"Sony will also co-operate with domestic game development teams to promote original products on Playstation platform, while further improving the Chinese gaming industry."

PlayStation vs Xbox

Last week Sony said it aimed to nearly triple operating profits by next year.

Sony's game console join venture comes nearly one month after rival Microsoft said its Xbox One game console will go on sale in China in September.

Microsoft will launch the console in collaboration with BesTV New Media Co, a subsidiary of Shanghai Media Group.

Industry research from PriceWaterhouseCoopers estimates that China's video-game industry will generate about $10bn (£6bn) in sales next year.

Instagram is the latest social network to hit Iran's blacklist

Iran's top officials may use social media, but the country's general populace isn't allowed to join them. The nation has already banned Facebook, Twitter andWhatsApp, and yesterday it reportedly added Instagram to the naughty list. According to the AP, a private lawsuit was brought against Iran's Ministry of Communications, forcing the bureau to restrict access to the Zuckerberg-ownedphoto-sharing service. There's no evidence that such filtering is in place right now, and users in Tehran were still able to take some selfies on Friday lunchtime. Still, given that social media is a threat to the country's conservative establishment, we imagine that someone will keep bringing lawsuits until no-one can utter the phrase "lemme take a selfie."

Amazon Tensions With Book Publisher Boil Over

In this image distributed on Tuesday, Sept. 24, 2013, Amazon.com Founder and CEO Jeff Bezos introduces the all-new Kindle Fire HDX 8.9'', right, and Kindle Fire HDX 7'' tablet in Seattle."

Growing tensions in the book publishing industry have led Amazon to block pre-orders from Hachette, the publisher home to popular writers such as Malcolm Gladwell and James Patterson.

The move by Amazon is the culmination of an ongoing contract dispute between the two, with Hachette believed to be taking a stand against Amazon demands for better terms. Numerous upcoming books from the publisher are now listed as "currently unavailable" on Amazon,the New York Times found.

Amazon has come under pressure recently to generate greater profits from its massive revenue stream. One way to do this is to push companies that sell products on its platform to offer a greater share of the money generated from e-books. This puts publishers in a difficult position of relying on Amazon for sales while trying to negotiate revenue sharing.

The blocked titles include preorders for J.K. Rowling's upcoming novel The Silkworm, written under the pen name of Robert Galbraith, which is set to be released on June 24 in the United States.

IMAGE: SCREENSHOT

In some cases, prices have risen dramatically, with the audio version of the upcoming book from Anne Rivers Siddons, The Girls of August, now costing $62.99 on preorder. The hardcover and e-book are not available.

Authors took to social media to encourage customers to go through Barnes & Noble or independent booksellers.

Amazon had been using various tactics to make Hachette offerings less appealing, removing discounts and allowing for shipping delays. The moves have drawn varied criticism as well as concern over the power that the company wields over publishers.

Amazon has a dominant position in the publishing industry, particularly in e-books. Amazon's Kindle e-books account for almost 20% of the U.S. book publishing industry and 65% of the e-book market.

Amazon's strength has been in scale. Being able to sell that many books has allowed Amazon to lower how much it earns on each sale. This means Amazon can sell a book for less than the competition because it only needs to make a tiny bit of money on each book.

Now that Amazon accounts for so much of the book market, it has the power to push harder in negotiations with publishers that rely on it for sales. Brad Stone, author of The Everything Store, a book detailing Amazon's business, found that the ecommerce giant did not hesitate to use its power during negotiations with book publishers.

The publishers, Stone recently noted at a conference, are seen by Amazon as gazelles, while Amazon considers itself a Cheetah.

Hachette issued a statement that acknowledged its preorder books had been labeled unavailable. "We are doing everything in our power to find a solution to this difficult situation, one that best serves our authors and their work, and that preserves our ability to survive and thrive as a strong and author-centric publishing company," the company wrote in a statement to Mashable.

Amazon did not respond to request for comment.

Editor's note: the original version of this story was published with the headline "Amazon Blocks Book Publisher as Industry Tensions Boil Over." This was changed because Amazon is not blocking all Hachette offerings.

Flipkart buys Myntra, redrawing online retail landscape

Flipkart’s buyout of Myntra will help the company compete better with Amazon India, Snapdeal and others at bay as well as provide Myntra access to a significantly larger pool of funds. Photo: Bloomberg

Bangalore: Flipkart India Pvt. Ltd, India’s largest e-commerce firm, is buying rival Myntra.com in the largest-ever deal in the fast-growing Internet business, as Flipkart seeks to extend its lead over rivals and boost its valuation ahead of a potential initial public offering.

Though the companies didn’t disclose the merger amount at a media briefing held on Thursday, the long-awaited cash-and-stock deal is likely to value online fashion retailer Myntra at more than $330 million, one person familiar with the matter said, requesting anonymity.

Myntra has set a goal of generating Rs.20,000 crore in gross sales by 2020, for which the site would need more than $200 million in cash, co-founder and chief executive Mukesh Bansal said.

Bansal will head the fashion business of both Myntra and Flipkart, and Myntra will operate as an independent entity and retain its website, while Flipkart will continue selling apparel on its site.

Flipkart’s buyout of Myntra will help the company compete better with Amazon India, Snapdeal and otheras well as provide Myntra access to a significantly larger pool of funds.

Flipkart’s and Myntra’s common investors Tiger Global Management, Accel Partners and Sofina Capital will get more shares in the merged entity.

Tiger Global and Accel Partners first proposed the deal last year, partly in response to aggressive moves byAmazon.com Inc.’s India unit to carve out a larger market share in the country. Flipkart’s founders Sachin Bansal and Binny Bansal, and Myntra co-founder and chief executive Mukesh Bansal approved the deal earlier this year, Mint reported on 6 May.

The Flipkart-Myntra deal comes amid a strong revival of interest in India’s e-commerce business, which was valued at $3.1 billion, excluding travel services and tickets, according to CLSA’s November 2013 report.

Snapdeal.com on Wednesday said it raised $100 million, mostly from new investors including Temasek Holdings Pvt. Ltd, BlackRock Inc. and Premji Invest, less than three months after it had received as much as $133.7 million of funding.

Flipkart, which has received $560 million in funding since starting out in 2007, is also in discussions to raise another round of funds, Mint reported this week. The company had raised $360 million in two tranches less than a year ago.

Flipkart’s valuation jumped to $2-$2.5 billion following the Myntra deal, one person with direct knowledge of the matter said, also declining to be named.

China bans use of Microsoft's Windows 8 on government computers

BEIJING - China has banned government use of Windows 8, Microsoft Corp's latest operating system (OS), in a blow to the U.S. technology company which has long been plagued by sales woes in the country.

The Central Government Procurement Center issued the ban on installing Windows 8 on government computers as part of a notice on the use of energy-saving products, posted on its website last week.

The official Xinhua news agency said the ban was to ensure computer security after Microsoft ended support for its Windows XP operating system, which was widely used in China.

Neither the government nor Xinhua elaborated on how the ban supported the use of energy-saving products, or how it ensured security.

China has long been a troublesome market for Microsoft. Former CEO Steve Ballmer reportedly told employees in 2011 that, because of piracy, Microsoft earned less revenue in China than in the Netherlands even though computer sales matched those of the U.S.

Microsoft declined to comment.

Last month, Microsoft ended support for the 13-year-old XP to encourage the adoption of newer, more secure versions of Windows. This has potentially left XP users vulnerable to viruses and hacking.

"China's decision to ban Windows 8 from public procurement hampers Microsoft's push of the OS to replace XP, which makes up 50 percent of China's desktop market," said data firm Canalys.

YouTube reportedly buying Twitch for $1 billion

Sources with Variety report that YouTube is nearing a deal to buy Twitch, the popular game streaming startup, for $1 billion. The deal is said to be an all-cash offer and will close "imminently," according to Variety; The Wall Street Journal, however, has followed up with a report claiming that discussions are "early" and that "a deal isn't imminent." The move, if it succeeds, would effectively put one of the web's most highly trafficked sites firmly in Google's hands.

Details are currently scarce. However, for YouTube's part, the move makes sense. Twitch, launched in 2011, has since become a premier destination for video game live-streams, and has effectively turned titles as offbeat as Pokemon into spectator sports. It currently has more than 1 million unique users broadcasting on its platform every month, and, according to a recent DeepField study, ranks ahead of even Google in terms of broadband traffic during peak hours. Twitch functionality is built into both the PlayStation 4 and Xbox One game consoles.

While YouTube is otherwise the king of online video, it mostly missed the boat on livestreaming. Pulling Twitch into the fold would put all that content under one roof. However, Variety reports that YouTube is preparing for regulators to challenge the deal.

Spokespeople for both YouTube and Twitch declined to comment.

ZAGG invisibleSHIELD GLASS screen protector review

I am a huge advocate for screen protection and when available, full-body protection on my electronic devices…from my smartphone to my laptop. For years, ZAGG invisibleSHIELD films have protected my smart-devices, even now one of their full-body films protects my MacBook Pro. But in the past few years, glass screen protectors have become increasingly more prevalent and in many cases, the norm. To be candid, I am surprised it has taken ZAGG so long to get into the game, but with their new invisibleSHIELD GLASS they have done just that. Note: Images can be clicked to view a larger size.

invisibleSHIELD GLASS is 0.4mm thick, made of ‘fortified scratch-resistant’ tempered glass. The tempered glass has an oil-resistant nano-coating that helps keep fingerprints and facial oils from building up on its surface. Beneath the glass are protection and adhesive layers.

Package Contents:

• invisibleSHIELD GLASS
• Micro fine cleaning cloth
• Cleaning wipe
• Warranty card

Installation:

As you would with any screen or full-body protection, cleaning the surface that the protector is going on is absolutely key to a successful installation. Glass screen protectors are much less forgiving than plastics films when it comes to anything trapped between it and the screen. The films mold around whatever is caught between the two, whereas the rigid glass does not and in most cases forms air bubbles which are difficult to remove.

Once the face of my Samsung Galaxy Note 3 was clean and dust free, I removed the plastic covering from the silicone adhesive side of the glass protector. Compared to flimsy plastic screen protectors, applying the tempered glass is extremely simple, easy, and stress free.

But in this case, ZAGG has made installing the invisibleSHIELD GLASS screen protector even easier. The plastic yellow tabs on each side makes placement nearly foolproof. Once placed, the GLASS adheres itself onto the smartphone’s screen. The two pieces of glass seem to suck together with zero bubbles that need to be forced out. Then you simply pull off the yellow plastic and you are good to go…

invisibleSHIELD GLASS is current available for:

• Apple iPhone 4/4s
• Apple iPhone 5/5c/5s
• HTC One
• HTC One M8
• Samsung Galaxy Note III
• Samsung Galaxy S4
• Samsung Galaxy S5

I would hope that ZAGG is creating invisibleSHIELD GLASS for other mainstream smart-devices as well, like the iPad, Note Pros, Kindles, etc.

There are many people out there that believe the Gorilla Glass that covers their device screen is strong enough to protect itself. But I know several friends who have disproved this belief and inadvertently scratched their screens…very sad indeed. To me, the GLASS’s surficial nano-coating, feels even better and stays much cleaner than the glass screen itself. If it were not for the upper cutout around the camera and speaker, the inivisibleSHIELD GLASS is so very clear you would not even know it is there. At $35 the inivisibleSHIELD GLASS is priced on par with other tempered glass screen protectors of the same caliber. However, the benefit of ZAGG is they back their screen protectors, including GLASS, with a world-class lifetime warranty. And to my knowledge, no other manufacturer backs their glass screen protectors with anywhere near that guarantee. A detail that sets ZAGG ahead of the pack…