CES 2009

From the Consumer Electronics Show, Larry Magid talks with Wall Street Journal columnist Walter Mossberg about Palm's new Pre cell phone and Yahoo's new Internet TV. Both Mossberg and Magid were impressed by the Palm phone, and Mossberg had some good things to say about Yahoo's TV initiative.

Today's stories:

Palm calls it a comeback with the Palm Pre

High hopes at Yahoo, Intel for Internet-enabled TV

CES has officially begun and we discuss a slew of offerings from the show floor, as well as the Steve Ballmer keynote. Also, Tom is offered the chance to record his voice for TomTom GPS devices. That's a lot of Tom!

EPISODE 887

Ballmer Keynote
http://ces.cnet.com/8301-19167_1-10131585-100.html
http://arstechnica.com/articles/culture/ces2009-microsoft-keynote.ars

Windows 7 goes Beta this Friday
http://news.cnet.com/8301-13860_3-10135791-56.html
http://news.cnet.com/8301-10805_3-10136418-75.html

Windows 7 might not come in '09
http://news.cnet.com/8301-13860_3-10135943-56.html

CES Press conference roundup:
Samsung: super thin OLED
http://ces.cnet.com/8301-19167_1-10135532-100.html

Vizio takes the cover off Connected HDTV: Netflix, Blockbuster, Amazon, Yahoo! and more
http://www.engadget.com/2009/01/07/vizio-takes-the-cover-off-connected-hdtv-netflix-blockbuster/

Yahoo! recaps a day of setting the Internet-on-TV movement on fire with Widgets
http://www.engadget.com/2009/01/08/yahoo-recaps-a-day-of-setting-the-internet-on-tv-movement-on-fi/

Wall-mountable Blu-Ray player
http://ces.cnet.com/8301-19167_1-10134004-100.html

Audiovox, PlayStation 2 roll out
http://ces.cnet.com/8301-19167_1-10135464-100.html

Acoustic Research Harmony killers
http://ces.cnet.com/8301-19167_1-10133953-100.html

LG’s 240Hz LCDs flash backlights really fast
http://ces.cnet.com/8301-19167_1-10135326-100.html
http://ces.cnet.com/8301-19167_1-10135175-100.html

LG to implement noise-canceling in many of its phones
http://ces.cnet.com/8301-19167_1-10134765-100.html

The Sony P-series Lifestyle PC: Just don’t call it a Netbook
http://ces.cnet.com/8301-19167_1-10131906-100.html

OQO launches world’s smallest Vista PC with OLED screen
http://arstechnica.com/news.ars/post/20090107-oqo-launches-worlds-smallest-vista-pc-with-oled-screen-see-notes.html

Pols hit panic button as DTV coupon program goes broke
http://arstechnica.com/news.ars/post/20090107-pols-hit-panic-button-as-dtv-coupon-program-goes-broke.html

New energy efficiency rules for TVs sold in California
http://news.slashdot.org/article.pl?sid=09%2F01%2F07%2F1946223

E-MAIL
Hey Tom, Molly, and Justin,

I was listening to show 886, and something caught my attention when
Natali was talking about the Giffen good. She said that when demand
increases, price increases when talking about high-priced technology
products. What she was actually referring to is called a Veblen good;
a Giffen good is when the price of an inferior good, a good that low-
income people generally prefer (ramen, bread, etc), rises and those
low-income people end up buying more of that good. A Veblen good is
like a Giffen good, but Veblen goods are generally luxury goods, such
as that new 17-inch MacBook Pro or a Lamborghini, etc. People buy
these Veblen goods at higher prices because it is considered to be a
mark of your financial status.

Sorry for such a long email, feel free to truncate it however you
wish, just wanted to clear that up.

Love the show, keep it up!
Daniel Byon

***********

Hey jamoto,

In Replyness to Daniels Email from Wednesday, I am also a UK listener and would like to say that the BBC does indeed broadcast their tv shows live on the internet. To clarify, the BBC iplayer is where viewers can watch shows from up to 7 days in the past and they also have a bbc watch live service which at this very moment I am watching live tv on the internet and on my terrestrial tv. This was also in place last year so Tom, you do get another correct prediction from 2008.

Chris Hisgrove

***********

Hi Buzz crew,

Tom, did I heard correctly in episode 884 that you'd love to get your voice on a TomTom? That's great news!
An even better news is that you don't even have to license your voice to us. You just have to record a few voice commands, convert them in a TomTom format and publish yourself on our TomTom HOME platform where Buzz-fans from all over the world can download it for free and put it on their TomTom. I'd sure be one of them!

It's a rather easy process for geeks like us and I'd be very happy to assist.

All the best,
Jeff from TomTom and long time listener

PS: Love the show

***********

Hey Buzz Crew,

Hope your enjoying CES. I’m stuck in snow snow and more snow…

I was listening to yesterday’s show (1/7) where you talked about a 10
meg max download over 3G for iTunes on the iPhone. While this is
true, I just go to your www and download the mp3. This works fine, so
I’m not sure why AT&T doesn’t block this then?!?

- Bob, the Nuclear Engineer

MySpace's sidebar slides out on the screen of a Widget Channel-compatible TV.

(Credit: MySpace)

We've heard a bit now about the Widget Channel, the partnership between Intel and Yahoo designed to bring Web functions like photo sharing and stock prices to living room TV sets. Well, MySpace is one of the partners on board: the News Corp.-owned social network has created a "widget for TV" that lets its members access a variety of features from Widget Channel-compatible TVs.

Basically, this means that you can install a MySpace widget in the Widget Channel "dock," and expand it in order to access profiles, status updates, in-box messages, and other site features. The widget was created, MySpace said, with the MySpaceID project that sprung out of its Data Availability initiative late last year.

So it's more or less MySpace on your TV. But that makes sense--with competitor Facebook having more or less bested it on the networking front, MySpace has begun to establish itself more as a media portal. The TV widget could potentially make for some cool developments in the future. MySpace Music playlists, for example, could make a nice addition to the home entertainment center.

And MySpace hopes this will only be the start of further off-the-PC endeavors. A release Wednesday hinted at a future presence on devices like DVD players and set-top boxes. And MySpace has also been ramping up its mobile offerings--the last development, which we heard about a month ago, was streaming video.

Yahoo's Widget Channel software for TVs and video devices shows a link to Yahoo's Flickr photo-sharing site, stock prices, and an advertisement. Intel, Yahoo, and several partners will show the technology off at CES 2009.

(Credit: Yahoo)

Yahoo and Intel built their success upon widespread use of personal computers, but the two companies hope products to be shown at the Consumer Electronics Show in January will mark the beginning of their Internet-fueled expansion to the world of TV as well.

The two companies have attracted several significant manufacturing and content allies in the attempt to bring new smarts and interactivity to a part of the electronics world that has remained a more passive part of people's digital lives. Intel and Yahoo showed off Net-enabled TV prototypes in August, but the companies' technology will be presented in more finished form at the electronics show within products by Samsung, Toshiba, and a number of new partners that have signed on since the debut.

What exactly are they trying to achieve? For Yahoo, it's establishment of the Widget Channel, a software foundation that can house programs for browsing photos, using the Internet's abundant socially connected services, watching YouTube videos, or digging deeper into TV shows--and through which Yahoo will be able to show advertisements. For Intel, it's a foothold in an industry whose microprocessors have typically been cheaper, less powerful, and less power-hungry.

Yahoo is confident the products will catch on, in part because it's set "very low" licensing requirements, said Patrick Barry, vice president of Yahoo's Connected TV initiative.

"We do not see it as a niche offering in a few high-end models. We see this as moving into the mainstream. In 2009 we're going to see good penetration into the product lineups of the consumer electronics companies," Barry said. "Beginning in 2010, I think, you're going to see Internet-connected consumer electronics devices dominating the lineup."

But for both companies, TVs are terra incognita. "We emerged from the ocean of the PC," Barry said.

An anthropologist's view
Despite years of effort, the idea to put media-centric PCs in the living room hasn't caught on widely. But Intel, stung by its poorly received Viiv brand, has been taking the challenge seriously.

It even dispatched its top anthropologist--yes, the chipmaker employs anthropologists--to carefully study how people use TVs. In other words, Intel is trying to adapt to reality, not foist its ideas on an unwilling market.

Some people like to watch TV, but anthropologist Genevieve Bell, director of user experience for Intel, likes to watch people watching TV. Specifically, Intel concluded that unlike the PC, TVs are social. People watch it together, and what they watch turns into what they talk about. Another difference from PCs: it must be simple and reliable, she said.

When bringing the Internet to the TV, "You couldn't just turn it into a PC," she said.

And it's pretty obvious why those not in the TV market would be angling for a piece of the action. People in the U.S. spend about 5 times more time watching TV than using a computer, Bell said. Globally, it's a factor of 25; unusually, the TV and PC time is at parity in Israel, perhaps because of communication habits, she added.

More ads
For decades, people have been accustomed to advertising-supported television. The Widget Channel technology opens up some new horizons for Yahoo, though Barry said the company isn't going to rush to plaster sponsorships over the new interface.

"We have a lot of support from the advertising community, but we're focused on the consumer now," Barry said. "What you'll see initially is us trying to fall all over ourselves trying to make the consumer happy. The advertisers understand that." He wouldn't comment on when advertising will be launched with the technology.

Although Yahoo will eventually show ads, it won't have a lock on them. Barry said: "We are not going to be locking down anything from a walled garden perspective, including monetization. We get a nice advantage, knowing the ins and outs, but we will not limit the platform to being addressable by us."

There are many opportunities for ads, including the dock that can be shown across the bottom of the TV screen and in pages that fill the screen.

The Widget Channel technology is based on the Widget Engine software Yahoo got in 2005 with its acquisition of Konfabulator, and it lets programmers write a wide variety of applications.

Course corrections
Intel learned from initial testing of the TV technology, Bell said. For one thing, the company found that people didn't like the Widget Channel controls appearing on the left edge of the screen, one option the companies had demonstrated. Instead, people prefer the bottom, where they're accustomed to seeing text already.

Intel research found that people didn't like the left-side Widget Channel dock. (Click to enlarge.)

(Credit: Yahoo)

For another, she said, people expressed a powerful desire for a big button to make the software go away in one fell swoop--no menus or arrow keys or complication--so they could get back to watching TV when they wanted. That big button is also used to activate the Widget Channel.

And nobody wanted yet another remote control.

To help chart its long-term course, Intel gauged consumer sentiment in part by asking what people thought the future of TV would look like. People's answers generally fit into a few categories:

• Something that would provide relevant information in real time, such as the weather right before heading to a sporting event.

• Something that would connect them to other people they care about, a variation of social networking.

• Something that would let them participate more with what they're watching, for example by figuring out where a show's cast members already had acted, or finding, rating, and sorting content.

Few, though, wanted a full-on Web browser, nor a keyboard to clutter up the room.

Yahoo sees the same fallow ground as Intel in the market.

TV innovations that have succeeded focused on screen size, image fidelity, and flat-screen technology, Barry said. "But the consumer electronics industry has not really explored the...connectivity that the Internet provides."

In less than one month, the Consumer Electronics Show will get underway in Las Vegas against the backdrop of an economic recession and a major political transition. But while the macro economy may impact attendance, what about the usual cornucopia of tech toys on display? CNET News' Erica Ogg offers a preview of the 2009 CES.