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Tuesday, January 4, 2011

Breakup of gadget pioneer Motorola is complete (AP) : Technet

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Breakup of gadget pioneer Motorola is complete (AP) : Technet


Breakup of gadget pioneer Motorola is complete (AP)

Posted: 04 Jan 2011 03:07 PM PST

NEW YORK – Motorola, the 82-year-old consumer electronics pioneer responsible for early televisions, cell phones and even the first broadcast from the moon, split into two companies Tuesday in a reflection of changing markets.

As separate companies — Mobility, targeting consumers, and Solutions, for professionals — the two will have simpler stories to tell investors and a nimbler approach to developing cutting-edge products such as tablet computers.

Sanjay Jha, CEO of the consumer-focused Motorola Mobility Holdings Inc., said in an interview that the new company will benefit from a narrower focus, all the way up to the top management and the board of directors.

"I think you'll see a board that is much more focused on understanding technology as opposed to managing a portfolio of products," Jha said.

For decades, Motorola Inc.'s products told the story of the march of electronics into the hands of consumers: car radios in the 1930s, TVs in the 1940s and cell phones starting the 1980s.

The company also expanded into police radios and barcode scanners aimed at government agencies and large businesses. These divisions complicated the picture Motorola painted for investors; now, they make up the second company, Motorola Solutions Inc.

With the breakup comes a shrunken bureaucracy, which both companies hope will help them make faster decisions and compete better in the marketplace.

"Motorola (Mobility) can be focused on handsets and nothing but handsets in a world where so much as changed over the last five years is good thing," said Gartner analyst Michael Gartenberg. Likewise, Solutions doesn't have to worry about the once-flailing cell phone business.

"Hopefully this will lead to more innovative designs, better time to markets and a better ability to not just capitalize on trends but also create trends," he said.

Dan Maloney, Mobility's president, also said a smaller company that excels at just a few things might spur employees to be more creative.

"Inside Motorola, it was difficult at times for employees to understand how what they were doing was going to directly have an impact on financial performance because it was such a large, multi-faceted entity," he said.

In a statement, Motorola Solutions spokeswoman Tama McWhinney looked forward to similar benefits.

"The separation gives us increased strategic flexibility and the opportunity to focus on this part of the portfolio with clarity, purpose and management focus," McWhinney said.

As part of the breakup, Motorola is selling its cellular network equipment division to Nokia Siemens Networks, a Finnish-German joint venture. Regulators in China are still reviewing the $1.2 billion sale, which is expected to close in the next three months.

Wireless carriers have consolidated into larger companies and prefer to deal with only a couple of equipment vendors each, leaving few opportunities for a small vendor like Motorola that wasn't dedicated to making network gear. The point of one company making both cell phones and the equipment that connects their calls has diminished as the technology has become standard.

Meanwhile, the company had to contend with companies such as Apple Inc. and BlackBerry maker Research In Motion Ltd., which focus on mobile devices.

Motorola's cell phone division once enjoyed strong sales thanks to the Razr, a 2004 feature phone that became a best-seller. As recently as 2007, cell phones accounted for two-thirds of the company's revenue. But without a blockbuster smart phone, the division fell into a slump that lasted until the most recent quarter.

In 2008, under pressure from activist investor Carl Icahn, Motorola set the breakup in motion. It hired Jha, then the chief operating officer of mobile chipmaker Qualcomm Inc., to strengthen the declining phone business. A turnaround is now under way, with a focus on smart phones such as the Droid that run Google Inc.'s Android software.

In 2011, Mobility expects to claim more market share in Latin America and China while dipping its toes into the U.S. tablet market, a category Jha says is one of the company's growth areas.

And while Jha said he wants to build a big company, that isn't Motorola's goal for the current year. The company's market cap as of Tuesday was $9.69 billion market, a fraction of Apple's $302.48 billion market value.

"I'm not a believer in scale for its own sake," Jha said. "I am much more focused on being able to deliver world-class products. In 1997 Apple didn't have scale. Only a few short years ago RIM didn't have sale. Nokia still has scale. I'm not sure scale alone defines your success or your future."

Motorola shareholders of record on Dec. 21 received one share of Mobility for every eight shares of Motorola Inc. they already held, and and one share of Solutions for every seven shares of Motorola. People who already owned shares in Motorola had been trading stock in the newly formed companies on a "when issued" basis for almost a month. Those trades became official Tuesday.

Shares of Motorola Mobility Holdings Inc. climbed $2.88, or 9.5 percent, to close at $33.12 Tuesday. Motorola Solutions Inc.'s stock closed unchanged at $39.77. The shares were trading on the New York Stock Exchange with the ticker symbols MMI and MSI, respectively.

Solutions will continue to be based in Schaumburg, Ill., while Mobility will take up a temporary home in nearby Libertyville, Ill. Motorola officials have said that it may later move its headquarters team to San Diego, the San Francisco area or Austin, Texas.

Toshiba plans big push on glasses-free 3D TV (Reuters)

Posted: 04 Jan 2011 06:53 PM PST

LAS VEGAS (Reuters) – Toshiba Corp will begin selling a 40-inch glasses-free 3D television in fiscal 2011 and plans to start marketing the groundbreaking devices beyond its home turf of Japan, executives said on Tuesday.

The Japanese conglomerate, which sells everything from household appliances to nuclear power stations, has already launched 12-inch and 20-inch versions of its glasses-free TV in Japan.

The company also sells 3D-capable televisions for use with customary glasses, along the lines of those offered by rivals such as Sony Corp.

Toshiba aims to sell 15 million televisions in the year to March, compared with 10 million the year before.

(Reporting by Isabel Reynolds; Editing by Bernard Orr)

HP sends out invites for WebOS event in February (Ben Patterson)

Posted: 04 Jan 2011 12:42 PM PST

Looks like HP and Palm are finally ready to show us their latest wares, including that long-awaited WebOS-based tablet — but the unveiling is slated for next month, rather than at this week's CES extravaganza in Las Vegas.

"Think big, think small, think beyond," reads an invitation from HP that hit my in box Tuesday afternoon. The event is slated for February 9 in San Francsico, and promises "an exciting WebOS announcement." No direct mention is made of tablets or smartphones, but it's pretty easy to read between the lines.

Palm also published a teasing post on its official blog, titled "'Twas the week after Christmas." It reads, in part:

I'm sure that you've heard that a tablet is nigh,
And lots more phones, and ePrint, and cool apps, oh my,
"First, Palm Pre! then, Pixi! and, Pre Plus (and Pre 2)!
Next, Whatzis? or Whosit! or, Thingabob? and Yoohoo!"
(Those aren't the real names! they're not even the codes!
You'll have to wait! have to wait! the future bodes!)

Very clever, with the ditty winding up with a verse that reads: "But for now I'll exclaim that unless something leaks, / 'Happy newness to all … in the forthcoming weeks.' "

Palm and its new owner, HP, have already made it plain that they're working on a tablet based on Palm's WebOS platform, due to arrive later this year. We're also expecting to see new WebOS smartphones, as well as HP printers embedded with WebOS software.

A recent story on the Fox News website pegged the big reveal for CES, but the prediction seemed iffy given that neither Palm nor HP have any big CES events planned.

— Ben Patterson is a technology writer for Yahoo! News.

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Microsoft to take on Apple TV, Google TV at CES? (Ben Patterson)

Posted: 04 Jan 2011 10:56 AM PST

Word has it that Redmond is—again—eyeing the living room, with a new report claiming that Microsoft will reveal plans Wednesday for a line of $200-ish TV set-top boxes based on a version of Windows designed to be embedded in consumer electronics devices.

The Seattle Times claims that the set-top boxes will be based on a "stripped-down" version of Windows, complete with the Windows Media Center user interface. The devices would let you stream videos from Netflix, as well as browse for broadcast and online shows using a "polished and familiar" programming guide, the article says.

This "embedded" version of Windows (a.k.a. Windows 7 Embedded) is no secret—indeed, Microsoft has been talking about it for months now. But from the sound of the Seattle Times piece, we may be hearing more detailed plans for actual Windows-embedded set-top boxes heading to market sometime this year.

As the Seattle Times points out, such a move would pit Microsoft squarely against the likes of Apple, Roku, Boxee, and Google, each of which have their own TV set-top boxes on store shelves.

But while Apple TV and the various Roku boxes sell for south of $100, the new Windows-based devices would likely cost "around $200," putting them closer to the $200 price point of the D-Link-manufactured Boxee Box. Meanwhile, the cheapest Google TV device—the stand-alone Logitech Revue—goes for a cool $300.

Of course, Microsoft is no stranger to the living room—consider the Xbox 360, the best-selling non-handheld game console (and a crackerjack media hub, to boot) on the market today.

Then again, there's also Microsoft's failed WebTV bid from several years back, while Windows Media Center—polished though it is—has been slow to creep into our dens.

None of this has been confirmed by Microsoft, of course, but we'll know more in just a few short hours, as Steve Ballmer is set to take the stage for Microsoft's CES keynote Wednesday night starting at 6:30 p.m. PT. Stay tuned.

Related:
Consumer Electronics Show comes to Las Vegas this week [The Seattle Times]

— Ben Patterson is a technology writer for Yahoo! News.

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Sprint Will Sell a 4G-Friendly MiFi in February (PC World)

Posted: 04 Jan 2011 06:29 PM PST

As 4G networks begin showing up in US cities, Novatel Wireless's Wi-Fi mobile hotspot remains the hottest product in personal mobile networking. Verizon, Virgin Mobile and AT&T are already selling them, and Sprint joined the party today with the announcement of a 3G/4G MiFi of its own.

Like the Overdrive mobile hotspot that Sprint already sells, Sprint's MiFi 4082 will receive cellular signal from either the Sprint 3G or 4G network, then form a small Wi-Fi network that can connect up to five Wi-Fi enabled devices, including tablets, eReaders, laptops or gaming consoles.

But Sprint's will be the first MiFi from a major US carrier to support 4G, which gives it a big leg up on the MiFi's sold by other carriers. 4G technology is said to deliver download speeds up to ten times faster than 3G. That means far faster speeds for all devices connecting through the MiFi.

Sprint's MiFi is about the size of 5 or 6 credit cards stacked on top of one another. An external display on the front gives you the status of the battery, signal strength, as well as the number of connected devices. There's also a port for a MicroSD card in case you want to store up to 32MB of content on your mobile hotspot.

Novatel says the MiFi can support that connection for up to 4 hours (similar to previous MiFi versions), and stay charged for up to 60 hours of standby time.

Sprint's MiFi will go on sale February 27, and will retail for $49.99 (after a $50 mail-in rebate) if you buy it with a new service contract. The service contract—Sprint's 3G/4G Mobile Broadband Plan--costs $59.99 per month for unlimited 4G, and 5 GB of 3G.

Want more CES coverage? Check out PC World's CES 2011 page with all the tech news and analysis you'll need to stay informed about this year's tradeshow.

Lenovo Shows Its First Tablet, the LePad (PC World)

Posted: 04 Jan 2011 06:50 PM PST

Lenovo has shown off its first tablet computer, the LePad, and will launch more tablets later this year in a bid to carve out some share in the emerging market dominated by Apple's iPad.

The LePad has a 10.1-inch screen and runs Google's Android 2.2 OS on a 1.2GHz Qualcomm Snapdragon processor. It was shown Tuesday evening at an event for press and analysts at the start of the Consumer Electronics Show in Las Vegas.

The LePad will go on sale first in China later this quarter, priced between US$399 and $449, said Leo Li, a Lenovo senior product manager. The company isn't certain yet if it will sell the product overseas, but it may offer a version in the U.S. that connects to the Android Market, he said.

Lenovo also plans to launch several other Android-based tablets in the U.S., perhaps in the second half of the year, Li said. He didn't provide details.

Lenovo is the dominant PC maker in China and the first LePad has features aimed specifically at that market, including localized gaming, news and other content. It supports Flash, as many online gaming and video applications in China are driven by that technology.

Lenovo also showed the IdeaPad U1, a hybrid device that turns the LePad into a netbook-like product. The LePad serves as the monitor but can also be detached to function as a tablet. It runs a Windows OS and has an Intel Atom processor. The U1 will be priced at about $1,000. Company officials could not provide details about availability.

A version of the U1 tablet was shown at last year's CES, but the device was scrapped when development began on the LePad, Li said.

PGA Tour gives fans green light to use mobile phones (Reuters)

Posted: 04 Jan 2011 07:07 PM PST

MIAMI (Reuters) – Spectators at this month's Farmers Insurance Open will be allowed to bring mobile phones to the course and use them in designated areas, the PGA Tour said on Tuesday.

The shift in policy is part of an ongoing experiment by the Tour to enhance the overall fan experience at events on the circuit.

"We understand that mobile devices have become a part of everyday life," PGA Tour Chief of Operations Andy Pazder said in a statement.

"There is a balance we are looking to achieve between maintaining the integrity of the competition and allowing spectators to utilize their mobile devices in various capacities. We anticipate our fans will be respectful."

Spectators will be allowed to use their mobile phones to send and receive e-mails and text messages, check on-course data and make calls in designated areas during the January 27-30 Farmers Insurance Open in San Diego.

In August last year, fans were permitted to bring mobile phones to the Wyndham Championship as long as the volume control was set to silent or vibrate.

Subsequent tests were carried out at last year's Frys.com Open and the unofficial Chevron World Challenge hosted by Tiger Woods in California.

(Reporting by Mark Lamport-Stokes in Kapalua, Hawaii; Editing by Peter Rutherford)

Russian Internet venture builds social networking empire (AFP)

Posted: 04 Jan 2011 02:13 PM PST

MOSCOW (AFP) – The Russian investment company, DST Global, which The New York Times reported on Tuesday had invested a further 50 million dollars in Facebook, is headed by low-profile Internet tycoon Yury Milner.

Milner is also the chairman of the rapidly expanding Mail.Ru Group, which has grown into the biggest Internet firm in the Russian-speaking world with stakes in e-mail and social networking sites.

The shaven-headed businessman trained as a physicist in Moscow before starting out as a manager at the World Bank. He began investing in the Russian Internet in the late 1990s and founded Mail.ru in 2001.

The sister companies Mail.Ru and DST Global have built major stakes in social networking sites.

Mail.Ru owns 100 percent of Russian networking site Odnoklassniki, and also has a significant stake in the country's other major networking site, Vkontakte.

The group owns 2.38 percent of Facebook, while DST Global, the investment vehicle, also has an undisclosed stake of its own in Facebook which unconfirmed reports last year put at a total holding of 10 percent.

The report in The New York Times said that if DST has invested 50 million dollars (37.5 million euros) more in Facebook, its combined stake with Mail.ru would be worth about 500 million dollars.

Spokesmen for Mail.Ru Group did not answer phone calls in Moscow on Tuesday, a public holiday.

In a rare interview with business daily Vedomosti late in December, Milner said that Mail.Ru had "chosen a strategy to have a global expertise in a very narrow sector."

He said that in every Internet sector, there was a tendency for one single firm to become dominant, and that the company had picked Facebook as the leader in English-language social networking.

"On the Internet there is a tendency for 'winner takes all' and a leader emerges in every niche with surprising consistency," he said.

"This is the main issue that we look at. When we made our first investment in Facebook, it was not obvious that it was a winner."

Mail.Ru Group made its debut on the London stock exchange in November and was valued at 5.71 billion dollars on flotation.

Milner told Vedomosti in December that he planned to invest the proceeds of the IPO in Internet projects, whcih he called "one of the most promising areas for the next 10 years."

Mail.Ru Group and DST are part owned by Alisher Usmanov, a Russian billionaire of Uzbek origin who first invested in DST in 2008 and is also a major shareholder in Arsenal football club.

Archos 5 Android Tablet, $245 (PC World)

Posted: 04 Jan 2011 04:26 PM PST

November 2009 review (updated in September 2010) for details. However, if all you want is a basic computing device that can let you read e-mail, browse the Web, and enjoy your videos and MP3s, it might be just the ticket.

When we reviewed the Archos 5 Internet Tablet, the 160GB model sold for a whopping $430--which might help to explain our reviewer's lukewarm response. Right now you can get that same model for only $245 at B&H.

For hot tech bargains in your inbox every week, subscribe to PCWorld Bargain Bulletin newsletter.

Internet Surpasses Television as Main News Source for Young Adults [STUDY] (Mashable)

Posted: 04 Jan 2011 01:07 PM PST

The Internet is now the main national and international news source for people ages 18 to 29, a study from the Pew Research Center reports.

In 2010, 65% of people younger than 30 cited the Internet as their go-to source for news, nearly doubling from 34% in 2007. The number who consider television as their main news source dropped from 68% to 52% during that time.

Of all 1,500 American adults surveyed, 41% say they get their national and international news from the Internet, up 17% from 2007. Sixty-six percent cite television -- down from 74% -- indicating the trend is spreading among other age groups.

Forty-eight percent of those 30-59 cite the Internet as their main news source, up from 32% in 2007, while television went down from 71% to 63%. Though the number of those in the 51-64 age group who consider television their main news source (71%) is about the same, those who turn to the Internet (34%) is nearly equal to the number who cite newspapers (38%). The amount of people 65 and older who get their news from the Internet has risen from 5% to 14%, but television remains the chief source for 79% of respondents.

These numbers fall in line with the rise of the personalized news stream online. Both Facebook's News Feed and Twitter launched in summer 2006 but didn't catch on until 2007. Both sites have seen explosive growth since 2008. Tweet counts have increased from 5,000 daily in 2007 to 90 million daily in 2010, while Facebook went from 30 million users in 2007 to more than 500 million users today.

In addition, the television viewership culture has shifted in the past few years. Between media streaming services on the web and, more recently, Internet-TV connection devices like Roku and Boxee, people have more viewing options than ever before. With the ability to personalize what news and entertainment you consume, these television watching methods have become more desirable for many.

Which is your preferred news source? Internet or television? Tell us in the comments below.

Image courtesy iStockphoto: iqoncept.

Car companies revving up 'connected' experience (Appolicious)

Posted: 04 Jan 2011 11:13 AM PST

Microsoft Should Ditch 'Windows' Brand for Set-Top Software (PC World)

Posted: 04 Jan 2011 03:34 PM PST

Rumor has it that Microsoft will launch a barebones version of Windows for TV set-top boxes at the Consumer Electronics Show in Las Vegas. Given Redmond's success in the home entertainment market--specifically the Xbox 360 game console and Kinect motion-sensor add-on-it's apparent the company does know how to sell fun gadgetry to consumers, despite its reputation (in some circles) as a PC-centric fuddy-duddy.

According to the Seattle Times, the set-top version of Microsoft's OS will offer media-streaming and remote-control features. It's designed to compete with similar Internet-to-TV gear including Apple TV, Google TV, and Roku. The Microsoft set-top platform will use the Windows Media Center interface, a tried-and-true entertainment UI that's been lurking on most PCs since the Windows XP days.

It's unclear whether Microsoft will name its set-top software "Windows TV." But given Redmond's recent marketing moves in the smartphone market-namely slapping the clunky "Windows Phone 7" moniker on its new mobile OS--there's a good chance it will.

And that's a bad idea. Sure, "Windows TV" may be short and sweet, but Microsoft is quite capable of gumming things up by enhancing the name. How does "Windows Series Media Center 7" sound? Or "Windows TV 7 Series with Web Streaming TV?"

Besides, the "Windows" brand has developed a drab, businesslike image over the years. It's all wrong for the living room. It's not fun. It conjures up images of laptops, desktops, and productivity suites. Think about it: How many Windows users even know that Media Center resides on their PCs? Not many, I'm sure.

My humble suggestion: If Windows TV does exist, let Microsoft's entertainment division--the clever folks responsible for Xbox and Kinect--come up with a name. After all, their track record is excellent in the home market. And I suspect they'd avoid "Windows" at all costs.

What do you think?

Want more CES coverage? Check out PC World's CES 2011 page with all the tech news and analysis you'll need to stay informed about this year's tradeshow.

Contact Jeff Bertolucci via Twitter (@jbertolucci ) or at jbertolucci.blogspot.com .

Microsoft Blames Server Problem for Hotmail Outage (PC World)

Posted: 04 Jan 2011 04:30 AM PST

Microsoft says it has fixed a problem with its Windows Live Hotmail service that temporarily deleted the e-mail of more than 17,000 users.

The trouble began on Dec. 30 when the e-mail in 17,355 accounts disappeared. On Monday, a Microsoft executive wrote that the company had identified the technical glitch and restored e-mail to the affected accounts by Sunday night.

"Customers impacted temporarily lost the contents of their mailbox through the course of mailbox load balancing between servers," wrote Chris Jones, a corporate vice president with Windows Live Engineering, on a company blog. "As with all incidents like this, we will fully investigate the cause and will take steps to prevent this from happening again. We're very sorry for the inconvenience this may have caused to you, our customers and partners."

Users created a Facebook group that outlined their problems with Hotmail. Some users reported that their e-mail had indeed been restored by Sunday night, but others noticed inconsistencies.

Several people wrote that their e-mails had been restored but that they were missing new ones sent since Dec. 30, the day the outage occurred. Company officials wrote on another forum that the issue was resolved by Sunday night.

Microsoft uses its SQL Server to manage Hotmail in what it says is the largest deployment of its product in the world, using tens of thousands of SQL databases.

Finallyfast.com Maker to Refund Thousands in Spyware Case (PC World)

Posted: 04 Jan 2011 05:10 PM PST

The company whose late-night commercials promised to "make your computer run fast the way it's supposed to," will pay tens of thousands of dollars in fines and refunds to settle charges that it engaged in deceptive advertising.

In a settlement with the Washington State attorney general's office, Ascentive, best known for its FinallyFast.com Web site, will pay $78,000 in penalties and offer $17.90 refunds to thousands of its Washington State customers who purchased the company's PC cleanup products but did not use them.

At FinallyFast.com, PC users download software that tests their system for any performance bottlenecks and then offers to clean things up -- for a fee. Consumers complained that the software didn't work as advertised and that Ascentive racked up charges without properly notifying customers.

According to Assistant Attorney General Jake Bernstein, the company was peddling scareware -- software that always found severe problems no matter what the condition of the computer being scanned. "They basically crossed the line in terms of advertising to consumers," he said.

Bernstein's office has a list of complaints against Ascentive, which echo consumer grievances that can be found online.

In court documents, the Washington attorney general's office said that until March 2009, Ascentive's free scan software came with adware and endless, annoying pop-up warnings that exaggerated problems on the computer. "The free scan categorizes everything that it identifies as an 'error,'" the filings state.

Customers who wanted to cancel their subscriptions were forced though a cumbersome process and finally had to respond to an e-mail message before their accounts would actually be closed. The company has now agreed to fix the way it advertises and bills for its products, Bernstein said.

Ascentive sued Google in June 2009 after the search engine company began refusing to run advertisements for its products. It dropped the suit a month later, and Google is again running ads for Finallyfast.com.

Ascentive could not be reached for comment.

However, it looks like the company has made a lot of money. Ascentive claims there have been more than 20 million downloads of its free scans. In a YouTube video interview with Ascentive CEO Adam Schran, filmed on Richard Branson's Necker Island Caribbean resort, Schran describes how he's enjoying the money he's made with the company, "It's important to spoil yourself along the way," he says. "Treat yourself to trips to Necker Island or a local spa or massage. Whatever is fun."

Robert McMillan covers computer security and general technology breaking news for The IDG News Service. Follow Robert on Twitter at @bobmcmillan. Robert's e-mail address is robert_mcmillan@idg.com

Chrome triples European share (Investor's Business Daily)

Posted: 04 Jan 2011 03:44 PM PST

Google's (NMS:GOOG) Web browser took 14.6% of the European market in Dec., up from just 5.1% a year earlier, making its gains largely at the expense of Microsoft's (NMS:MSFT) Internet Explorer, which lost its European lead. Mozilla's open-source Firefox has 38.1% of the market, maintaining its share, while Internet Explorer dropped to 37.5%, StatCounter said. Google dipped 0.4% to 602.12. Microsoft rose 0.4% to 28.09.

Remotes coming to Netflix-streaming devices (AP)

Posted: 04 Jan 2011 03:14 PM PST

LOS GATOS, Calif. – Netflix fans will soon be able to use a remote controller to flick through their flicks available for streaming over the Internet on devices such as TV sets, Blu-ray players and others.

Netflix Inc. said Tuesday that consumer electronics companies will begin selling remotes with "Netflix" buttons in the spring. The buttons will bring up the Netflix screen on users' TV sets, providing easier access to TV shows and movies. Though the button will likely only save couch potatoes a few seconds of time, its appearance is another sign that Netflix has become a household name.

Netflix says the list of companies that will make the remotes for some new Blu-ray players include Best Buy's in-house Dynex brand, Memorex, Panasonic, Samsung, Sony and Toshiba. Some Blu-ray devices can connect to the Internet, which lets users stream movies.

Sharp, Sony and Toshiba will also place the Netflix button on some new Internet-connected TVs.

Netflix, based in Los Gatos, Calif., has been spending heavily to obtain the streaming rights to movies and TV shows to help lure more customers and shift existing subscribers away from DVDs, which cost more to distribute.

Shares of Netflix rose 18 cents to $181.55 in after-hours trading, having closed up $2.96 at $181.37.

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