Viacom sues Cablevision over iPad streaming

The lawsuit was filed on Thursday in Manhattan federal court, one day after court documents showed that Cablevision's larger rival Time Warner Cable Inc and Viacom are trying to settle a similar dispute, and have put related lawsuits on hold while they try.
Viacom said Cablevision's April 2 launch of Optimum App, a computer application to allow streaming of television programs through a cable modem to wholesale  iPad tablets, violates its agreement to distribute Viacom programing only on cable TV systems.
The popularity of mobile devices such as iPads has caused friction between content providers and cable companies such as Viacom over whether various means of distribution violate contractual or trademark rights.
Viacom's lawsuit seeks a halt to Cablevision's alleged improper streaming, $2 million for each trademark violation, compensatory and punitive damages, and other remedies.
Jim Maiella, a Cablevision spokesman, said the Optimum App "falls within our existing cable television licensing agreements with programmers, including Viacom."
Cablevision is based in Bethpage, New York, and has about 3.7 million customers, a regulatory filing shows. Time Warner Cable has about 14.5 million customers, another filing shows.
Viacom, whose chief executive is Philippe Dauman and executive chairman is Sumner Redstone, is based in New York. Its channels include MTV, VH1, Nickelodeon, Black Entertainment Television, Comedy Central and Country Music Television.
Cablevision also owns properties such as the Long Island, New York, newspaper Newsday. Its chief executive, James Dolan, is also executive chairman of Madison Square Garden Co, which controls the New York Rangers hockey team, New York Knicks basketball team and Radio City Music Hall.
In afternoon trading, Cablevision shares were down 84 cents, or 2.4 percent, at $34.52, while Viacom's Class B shares were down 91 cents, or 1.9 percent, at $47.74.
The case is Viacom International Inc et al v. Cablevision Systems Corp et al, U.S. District Court, Southern District of New York, No. 11-04265.
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Yahoo Chairman Backs CEO Bartz, but Investor Wants Her out

Yahoo CEO Carol Bartz was backed by the company's chairman at the start of the company's annual shareholder meeting on Thursday, but got ripped by an investor who called for her resignation.
Yahoo's board is rumored to be talking to possible CEO replacements, but Roy Bostock said no such thing is in the works and that Bartz has the confidence of the directors because under her guidance, Yahoo has made "demonstrable progress."
"We still have a lot of work to do to deliver the kind of value we want to deliver to our shareholders. This is indeed a work in progress but this management team has built a strong foundation," Bostock said.
However, wholesale cellphone an investor, who said he also advises institutional investors with large stakes in the company, blasted Bartz for a variety of things, including the company's stock price, its latest conflict with Alibaba Group and its overall market strategy.
At this point, Bartz should resign, he said. "The last thing Yahoo needs right now is a lame-duck CEO. The buyout talks over your contract need to start today and a search needs to be accelerated."
The shareholder spoke for several minutes and didn't mince words in his criticism of Bartz, saying that the upbeat tone of her prepared remarks at the meeting painted an unrealistic picture of what he considers to be a deeply troubled company.
"No more excuses, no more victory laps," he said.
When he was finished speaking, she thanked him and said: "That was certainly a downer." The meeting ended on that note.
All Yahoo directors, including Bartz, won re-election to the board at the meeting. Bartz's CEO contract ends in January 2013.
In May, Yahoo got into its latest tussle with Alibaba Group, the Chinese company in charge of Yahoo's brand and services in that country. Yahoo owns a 43 percent stake in Alibaba Group worth about US$2.3 billion.
Yahoo accused Alibaba Group of spinning off its Alipay online payment unit to a Chinese company controlled by Alibaba CEO Jack Ma without Yahoo's knowledge.
Alibaba countered, saying that it had kept Yahoo's board members informed about the situation, which was driven by new regulations requiring that for Alipay to obtain a license, it needed to be spun off.
Eventually, the companies issued a joint statement saying they were working to draft a solution to the issue. This week they issued another statement reiterating that discussions are continuing. Yahoo is seeking compensation for the diminished value of its stake in Alibaba Group now that Alipay is no longer part of it.
Another difficult situation for Bartz is the search partnership she brokered with Microsoft, which isn't yielding the expected revenue for Yahoo so far.
She has said that the situation should be remedied by year's end and that in the meantime Yahoo is guaranteed a fixed revenue level through March of next year.
Yahoo has outsourced back-end search functions to Microsoft, like Web crawling, indexing and ranking, to save money and better compete against Google, and in exchange agreed to pay Microsoft a commission for paid search ads sold on Yahoo and Yahoo partner sites.
When the deal was signed, Yahoo estimated that, when fully implemented, it would boost its annual operating income by about $500 million, provide capital expenditure savings of about $200 million and increase annual operating cash flow by about $275 million.
On Thursday Bartz, who took over as CEO in January 2009 from co-founder Jerry Yang, rattled off a list of what she considers her main accomplishments, as she has done recently at other meetings and conference calls.
Specifically, she highlighted the revamping of the company's technology back end, designed to bring global consistency and increase the efficacy of the systems that power Yahoo's content management and advertising platforms.
With these new systems in place, Yahoo is able to serve up more personalized content faster across its sites, and deliver more targeted and effective advertising.
She also highlighted Yahoo's focus on delivering its content and ads across all devices and platforms, not only on desktop browsers, and stressed Yahoo's leading position in the U.S. and abroad in content categories like news and finance.
Still, the company's stock price hasn't rebounded dramatically. Company shares, which closed at $12.10 per share on Jan. 13, 2009, her first day as CEO, stood at $15.23 at yesterday's closing and were trading below $15 during Thursday's meeting.
In her first quarter on board, 2009's first quarter, Yahoo had revenue of $1.58 billion, down 13 percent year on year, while GAAP net income fell 78 percent to $118 million.
By comparison, in the first quarter of 2011, Yahoo had revenue of $1.21 billion, down 24 percent year on year, while net income fell 28 percent to $223 million.
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Apple's Tim Cook Visits China Mobile to Discuss 4G LTE iPhone

Apple Chief Operating Officer Tim Cook is spotted at China Mobile headquarters this morning. A Chinese reporter from First Financial Daily (one of the most prosperous financial papers in China) managed to take a picture of Tim Cook walking in the lobby of China Mobile’s HQ, and there are 7-8 people walking along with Cook. And Cook seemed to be happy.
Here’s what the reporter posted to her Sina microblog this evening:

“This morning, around 10, Apple COO Tim Cook is spotted in the lobby of China Mobile’s HQ, accompanied by 7-8 people. Probably Cook is talking with executives from China Mobile to discuss bilateral cooperation for the iPhone. Both China and America flags are seen in the lobby, and Cook seems to be happy.”

Previously, China Mobile, the country’s largest wireless operator, confirmed that it had “reached consensus” with Apple related to support for their fourth-generation TD-LTE radio technology in future iPhones. China Mobile CEO Wang Jianzhou told MarketWatch that his company will begin commercial trials of the 4G TD-LTE technology next year, but refused to provide a time-frame for a possible 4G LTE iPhone launch in the country. With today’s update on Tim Cook visiting China Mobile, we think the cooperation between China Mobile and Apple will be HUGE. If Apple is going to use TD-LTE in the next iPhone you can bet your arse that every carrier in the world will be making sure their “4G” will be TD-LTE too when it gets deployed. So, does this tell us that an iPhone 5 with 4G LTE support is coming soon?
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That Apple Television Is Coming This August Alongside The iPhone Nano (And Santa)

I really wanted to do the headline without the Santa bit, but I didn’t want to be that much of an ass.
Regardless, let’s see how many people report this as fact just from the headline. In other words, let’s catch who doesn’t bother reading beyond the headline — or even the entire headline. In other words, let’s see who is an idiot that should be fired or stripped of their right to blog.
But wait, my headline does have a point beyond being a (weak) trap. My point is that if you believe an Apple Television is coming later this year, I have a nice iPhone nano to sell you. Catch my drift yet?
Earlier today, DailyTech reported that Apple would enter the television business later this year. No, they do not mean the business Apple is already in with the Apple TV, they mean the actual television business. As in, there will be a full Apple television set. DailyTech cites a source which they say is a “former Apple executive” who wanted “anonymity” but apparently didn’t mind being cited as a “former Apple executive” even though there aren’t many — and even fewer who would have any clue about this type of recent high level project. But I digress…
The key information from their source is that an Apple television is due this fall, it is meant to “blow Netflix and those other guys away”, there will be an OEM partner who actually makes the device (DailyTech predicts Samsung), and then Apple will re-brand it as their own and sell it in their stores.
Where to begin?
Admittedly, I don’t have much on this information beyond common sense. But that doesn’t mean I have no knowledge either. With that in mind, I don’t have any problem going out on a limb and saying this isn’t happening.
The Apple-made television set debate is one that has been going on for ages. There are plenty of people on both sides of why it would or would not make sense for Apple to get into this business. I’m actually on the side that believes that Apple will eventually get into this business. I think that for two simple reasons: 1) the potential (meaning mainly the living room) is huge 2) the industry (meaning mainly the television hardware business — including cable boxes) is very ripe for disruption. And even though extremely low margins dominate right now, I think Apple could figure out a way to sell their own televisions at their standard high margins.
Still, I just can’t see anyway that this happens this fall. Hell, I’d bet it would be unlikely for next fall too. Why? Because I’ve heard Apple has been pleasantly surprised by the moderate success of the newer $99 Apple TV which was released last year. It remains a hobby, but it’s becoming a more interesting hobby for them. And I think they intend to see what they can do with this product that has a relatively low barrier to entry and constitutes little risk for them.
We’re going to see some interesting things later this year when iOS 5 allows iOS apps to be mirrored to the Apple TV wirelessly. Step two is getting the apps running on the Apple TV itself. Remember, the new Apple TV also runs on iOS — there’s a reason for that. There will eventually be apps on the device.
I believe that happens before Apple tries their hand at making an actual television set. This will also buy Apple some time as component prices for the large screens needed for modern television sets continue to come down. Right now, the largest screen devices Apple makes are the 27-inch iMacs and Cinema Displays. They’re huge and beautiful — they’re bigger than my TV in college. But they’re not big enough to replace today’s living room TV sets. Apple needs to get to those sizes, and I think they will eventually, but it will take time.
The biggest problem I have with the DailyTech report is the notion that Apple would partner with an OEM to make the television sets. I have no doubt that some OEMs would kill to get Apple branding on their products. But Apple would never go for that. Apple’s entire essence is about being in complete control of their products. From concept to design to production to software to finished product, they control it all. Apple has ventured a bit outside of this strict creed a bit before. And we got the Motorola ROKR — a piece of crap.
If Apple does a television set, they’re going to make it. From concept to manufacturing to shipped product, it will be an Apple television.
The one interesting aspect of the DailyTech report is the notion that Apple is building this television to blow away Netflix. From what I’ve heard, Netflix is something that definitely intrigues Apple. As in, they may view it as perhaps the one online video model that works long-term. Obviously, the two sides have a deal to put Netflix on the Apple TV. And Netflix makes iOS apps. But I wouldn’t be surprised if Apple is thinking about their own solution in this space for future devices down the road.
While we’re on the topic of Apple rumors, why not briefly address a few others that have popped up today? Earlier, BGR reported that the iPhone 5 may hit in August. From what I’ve heard, this is unlikely. Apple has stated that iOS 5 is due this fall, August is not the fall, and there is no way Apple releases the iPhone 5 without iOS 5. September is looking more likely for each, as we have previously reported.
A report later this evening by Bloomberg also reiterates September and goes over much of what has already been rumored about the next generation iPhone for some time: better processor, better camera, resembles iPhone 4, etc.
The more interesting tidbit in this report is that Apple is testing a new iPad with a higher-resolution screen. Back in February, we noted that Apple was lining up for a fall “surprise” and had heard that a new version of the iPad was set to be that surprise. We haven’t heard any new information since then, but it’s still certainly a possibility. Of course, at the time, it wasn’t yet clear that the iPhone 5/iOS 5 would be pushed to the fall. As always, things are fluid. But if I were a betting man, I’d say a new iPad this fall is a better bet than an actual Apple television.
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Yahoo’s 360 Degree Turnaround

Oof, Yahoo. The Alibaba dispute, just the most recent Yahoo trainwreck, is still a fresh wound for shareholders. And things are getting worse.
Yahoo CEO Carol Bartz has long promised a turnaround at the lagging company. But we’ve been digging for new information about the state of Yahoo in advance of the annual shareholder meeting later this week, and everything we’re hearing isn’t good. One investor we spoke with said “It’s a turnaround alright, but it’s a 360° turnaround. Basically, they’re spinning in circles.”
Things we’ve learned from multiple sources:
- Yahoo is quietly looking at replacement CEO candidates. Fox Digital Chief Jon Miller has had “early and unofficial” discussions with the Yahoo board of directors about taking over as CEO. It’s thought that Yahoo board member David Kenny, who’s long wanted the job, is also a current candidate. Other names have been whispered. Bartz may know that there’s an active if unofficial search going on, but only if she’s hearing it indirectly, says one source.
- Prabhakar Raghavan, previously head of Yahoo Research, was promoted to Chief Strategy Officer. He is “responsible for developing the long-term corporate strategy and technical vision for Yahoo.” His lack of business experience has alarmed some investors, who see it as a poor judgement call by Bartz.
- Worst of all, Yahoo’s financial results are said to be significantly below what the street expects, even after expectations were lowered in May. We expect significant revisions to the guidance Yahoo will be giving analysts going forward based on what we’ve heard, particularly for the last half of the year. Even so, the stock price may not drop much. “Investors have already priced the main Yahoo business to zero,” said one investor.
- Chairman Roy Bostock seems to be the main target of upset shareholders right now. It would be too disruptive to remove Bartz from the board of directors, our sources say, but sending a clear message that they don’t support Bostock would be appropriate. There’s little chance of him actually getting less than a 50% vote, and Yahoo can override a shareholder vote anyway. But if 25% or more of the votes are withheld, it’s likely he’ll be forced to step down. Of course, we’ve seen this movie before and Bostock has survived.
One person we spoke with was willing to go on record. Eric Jackson, who’s been openly critical of Yahoo for years, said he hopes for a board level shakeup at the meeting on June 23. As for Bartz, Jackson threw this zinger: “Personally I’d like to see [Softbank CEO] Masayoshi Son or [Alibaba founder] Jack Ma become CEO of Yahoo.”
These are really just the raw notes from our discussions. We have a couple of other major stories developing around Yahoo as well. But for now we just have to wait and see how things play out at the shareholder meeting, and whether the Yahoo board can avoid a massive no confidence vote.


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Exclusive: Tiered Data Plans Headed to Verizon July 7, Packages Start at $30 for 2GB

We knew that July 7 was going to mark the beginning of something after Verizon extended out the free 4G hotspot promo one more time to the 6th, but what we weren’t 100% sure of was if it would have to do with tiered data.  Employees have been receiving training over the last couple of weeks on a new point-of-sale system along with new account management tools that hinted at family plan changes, so again, we knew that something was definitely on the horizon, just weren’t sure exactly what.  Well, we’ve just received word that tiers are scheduled to start the day after the promo ends (on the 7th) for new customers and will look something like this… 
Data plans:
2GB – $30/month
5GB – $50/month
10GB – $80/month
If you would like to add tethering on to any of those packages, you can purchase 2GB of data at an additional cost of $20 per month.
Data plans w/ tethering:
4GB – $50/month
7GB – $70/month
12GB – $100/month
If you go over your purchased amount of data, it will cost you $10 per 1GB.
Tablet data plans will now go to $30 for 2GB of data as well instead of $20 for 1GB of data that is currently available.

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*Note 1 – We have also been told that this is for both 3G and 4G smartphones and that there are not separate plans depending on device.  So if you are under contract currently, you should be fine and don’t need to run out and buy a 4G phone just to lock in as we’ve seen other sites seem to want to suggest.
*Note 2 - And I should probably clarify that these new prices should not affect anyone that is currently under contract.  Major changes like this concern only new customers and possibly those that are up for a renewal.  We have even heard mention of current customers being allowed to upgrade to a new device after July 7 though, and continue to keep their unlimited data, but are awaiting further clarification on that.
Surprised by these numbers?
Update:  If you’d like to see additional confirmation, then check out this letter we received that has been sent out to Verizon employees by VPs.
Let’s look at how they compare to AT&T’s tiers:
200MB – $15/month
2GB – $25/month
4GB – $45/month
So each plan is essentially $5 more per month, which Verizon will likely justify by saying that they offer a more reliable 3G network and a faster 4G LTE network.  We knew they were coming – let me know what your thoughts are.

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New Startup

Entrepreneurs gonna entrepreneur. I have a new startup! We are building something consumer-facing, something social — all the things I love best — for optimal founder-market fit!. It’s crazy times in the Valley and while I prefer doing startups when the going’s tough, money is scarce, and talent is thick on the ground — the best time to start a company is always two years ago, and the next best time is now. So now it is.
We are funded by my buddies at True Ventures (especially Jon Callaghan & Tony Conrad, rockingest investors this side of rock), my very own fund Founder Collective (with Dave Frankel, Eric Paley, Chris Dixon, Zach Klein, Bill Trenchard et al.), SV Angel (including David Lee and Ron Conway, Godfather of the Internet), Betaworks and independent angels, friends and family such as Keith Rabois, James Joaquin, Shoshana Berger and The Best Sister in the World.

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You can sign up to get launch announcements and be a beta tester by joining our mailing list.
And we are hiring both back end & front end engineers. We’re working primarily in Ruby on Rails, using Backbone.js, and jQuery mobile. We are located in San Francisco, in Hayes Valley. If this sounds appealing, email us your resume and tell us about yourself.
UPDATE: Whoa! I changed “engineers are unemployed” to “talent is thick on the ground” — Someone wrote recently that he knew it was a bubble when it was easier to raise money than hire engineers and that was what I was thinking of when I wrote that. Came across the opposite as how I meant it. Thanks for pointing that out, various folks!
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