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Tuesday, August 31, 2010

Every September, the Apple iPod is redesigned. Last year saw the release of the iPod Nano 5th generation, bringing a video camera and a large range of colours to the Nano for the first time. But as Apple again prepares to unveil a redesigned product, the company has released their quarterly sales figures—and revealed that they have sold only 9m iPods for the quarter to June—the lowest number of sales since 2006, leading industry anylists to ponder whether the world’s most successful music device is in decline.

Such a drop in sales is not a problem for Apple, since the iPhone 4 and the iPad are selling in high numbers. But the number of people buying digital music players are concerning the music industry. Charles Arthur, technology editor of The Guardian, wrote that the decline in sales of MP3 players was a “problem” for record companies, saying that “digital music sales are only growing as fast as those of Apple’s devices – and as the stand-alone digital music player starts to die off, people may lose interest in buying songs from digital stores. The music industry had looked to the iPod to drive people to buy music in download form, whether from Apple’s iTunes music store, eMusic, Napster or from newer competitors such as Amazon.”

Mark Mulligan, a music and digital media analyst at Forrester Research, said in an interview that “at a time where we’re asking if digital is a replacement for the CD, as the CD was for vinyl, we should be starting to see a hockey-stick growth in download sales. Instead, we’re seeing a curve resembling that of a niche technology.” Alex Jacob, a spokesperson for the International Federation of the Phonographic Industry, which represents the worldwide music industry, agreed that there had been a fall in digital sales of music. “The digital download market is still growing,” they said. “But the percentage is less than a few years ago, though it’s now coming from a higher base.” Figures released earlier this year, Arthur wrote, “show that while CD sales fell by 12.7%, losing $1.6bn (£1bn)in value, digital downloads only grew by 9.2%, gaining less than $400m in value.”

Expectations that CDs would, in time, become extinct, replaced by digital downloads, have not come to light, Jacob confirmed. “Across the board, in terms of growth, digital isn’t making up for the fall in CD sales, though it is in certain countries, including the UK,” he said. Anylising the situation, Arthur suggested that “as iPod sales slow, digital music sales, which have been yoked to the device, are likely to slow too. The iPod has been the key driver: the IFPI’s figures show no appreciable digital download sales until 2004, the year Apple launched its iTunes music store internationally (it launched it in the US in April 2003). Since then, international digital music sales have climbed steadily, exactly in line with the total sales of iPods and iPhones.”

Nick Farrell, a TechEYE journalist, stated that the reason for the decline in music sales could be attributed to record companies’ continued reliance on Steve Jobs, CEO of Apple, saying that they had considered him the “industry’s saviour”, and by having this mindset had forgotten “that the iPod is only for those who want their music on the run. What they should have been doing is working out how to get high quality music onto other formats, perhaps even HiFi before the iPlod fad died out.”

When Jobs negotiated a deal with record labels to ensure every track was sold for 99 cents, they considered this unimportant—the iPod was not a major source of revenue for the company. However, near the end of 2004, there was a boom in sales of the iPod, and the iTunes store suddenly began raking in more and more money. The record companies were irritated, now wanting to charge different amounts for old and new songs, and popular and less popular songs. “But there was no alternative outlet with which to threaten Apple, which gained an effective monopoly over the digital music player market, achieving a share of more than 70%” wrote Arthur. Some did attempt to challenge the iTunes store, but still none have succeeded. “Apple is now the largest single retailer of music in the US by volume, with a 25% share.”

The iTunes store now sells television shows and films, and the company has recently launced iBooks, a new e-book store. The App Store is hugely successful, with Apple earning $410m in two years soley from Apps, sales of which they get 30%. In two years, 5bn apps have been downloaded—while in seven years, 10bn songs have been purchased. Mulligan thinks that there is a reason for this—the quality of apps simply does not match up to a piece of music. “You can download a song from iTunes to your iPhone or iPad, but at the moment music in that form doesn’t play to the strengths of the device. Just playing a track isn’t enough.”

Adam Liversage, a spokesperson of the British Phonographic Industry, which represents the major UK record labels, notes that the rise of streaming services such as Spotify may be a culprit in the fall in music sales. Revenues from such companies added up to $800m in 2009. Arthur feels that “again, it doesn’t make up for the fall in CD sales, but increasingly it looks like nothing ever will; that the record business’s richest years are behind it. Yet there are still rays of hope. If Apple – and every other mobile phone maker – are moving to an app-based economy, where you pay to download games or timetables, why shouldn’t recording artists do the same?”

Well, apparently they are. British singer Peter Gabriel has released a ‘Full Moon Club’ app, which is updated every month with a new song. Arthur also notes that “the Canadian rock band Rush has an app, and the industrial rock band Nine Inch Nails, led by Trent Reznor – who has been critical of the music industry for bureaucracy and inertia – released the band’s first app in April 2009.” It is thought that such a system will be an effective method to reduce online piracy—”apps tend to be tied to a particular handset or buyer, making them more difficult to pirate than a CD”, he says—and in the music industry, piracy is a very big problem. In 2008, the International Federation of the Phonographic Industry estimated that 95% of downloads were illegitimate. If musicians can increase sales and decrease piracy, Robert says, it can only be a good thing.

“It’s early days for apps in the music business, but we are seeing labels and artists experimenting with it,” Jacob said. “You could see that apps could have a premium offering, or behind-the-scenes footage, or special offers on tickets. But I think it’s a bit premature to predict the death of the album.” Robert concluded by saying that it could be “premature to predict the death of the iPod just yet too – but it’s unlikely that even Steve Jobs will be able to produce anything that will revive it. And that means that little more than five years after the music industry thought it had found a saviour in the little device, it is having to look around again for a new stepping stone to growth – if, that is, one exists.”

Thursday, August 18, 2005

“Total chaos” is how many described the melee that resulted from a sale of used Apple iBook laptop computers at the Richmond International Raceway (RIR) by the Henrico County, Virginia school system.

Officials estimated nearly 5,000 people thronged the sale for the $50, four-year-old computers. Among them were 17 injured, four requiring hospitalization – one for a leg injury, and three for heat-related illness, said Henrico County Police. Reports of trampling in the stampede were not uncommon, and one driver reportedly tried to drive through the throng of prospective buyers.

Alice Jemerson, an elderly customer said, “They bum rushed the gates and I was knocked over, fighting for my life. All these people were on top of me.”

Shortly after 7am EST officials opened the gates and many residents ran hysterically toward the building where the sale was to occur at 9am.

At a post sale press conference, Henrico County Police spokesman Lieutenant Doug Perry told reporters, “A few bad apples found their way inside. It looked worse than it was.”

Apple iBooks are the preferred computer for Henrico County schools, and Director of General Services of Henrico County Paul Proto, said changes were made to the event after tremendous interest was generated, some as far away as Europe and California. Officials closed and moved the sale from the Henrico county school warehouse to the RIR, after residents complained that their tax dollars were used to buy the computers, and they ought to have first right to repurchase them. The Henrico County Board of Supervisors voted to amend the County Code so that only residents could purchase the laptop computers.

Although officials had prohibited camping out and overnight parking, some in attendance reported that people began arriving at midnight.

Henrico Police Chief H.W. Stanley, Jr. said five patrol officers were originally planned for the event, a customary presence for an event the size authorities had estimated. But by 6 am, an enormous crowd was assembled at the front gate.

Officials present before opening told the crowd that automobiles would be allowed to enter first, which prompted many to run to their cars. But while some were running back to their cars, others rushed the gate. The resulting confusion created much anger, and guards closed the gates shortly thereafter.

Long lines encircling the sale building were commonplace, and one observer noted, “They’re going to see themselves on the news tonight, and see what fools they are.”

Some citizens, however, considered their wait worthwhile. Hairstylist and mother of two Sheress Blunt was one of the first hundred to buy one of the iBooks; she came with her mother and said they sneaked into the raceway through a side gate.

Tonya Vaughan arrived at 5:30 a.m., also bought one of the first iBooks and said three people offered to buy it from her for as much as $200. She declined however, saying, “I told them no way! I had worked too hard for it.”

Lt. Perry said many officers were complimented on the way they handled the crowd, adding that police were seen letting children who had been pushed aside, into the building.

Mr. Proto said, “There are no plans right now to have another iBook sale.”

Henrico County Battalion Police Chief Steve Wood said no arrests were made and the iBooks were sold out by 1pm EST.

Sunday, April 3, 2011

The US Food and Drug Administration (FDA) has issued proposed calorie labeling rules requiring most retail food vendors to display the calorie counts in items on their menus and menu boards. The proposed rules, issued Friday and expected to be finalized in 2012, would apply to most restaurants, snack bars, vending machines, coffee shops, drive-through restaurants, and convenience and grocery stores.

The US Congress required the rules in the health-care reform law passed in 2010. The rules proposed by the FDA must undergo a public comment period before they are finalized and take effect, said Michael R. Taylor, Deputy Director for Foods at the FDA.

The proposed regulations pertain to businesses devoting more than 50 percent of their floor space to the sale of food or that consider themselves restaurants, specifically food-selling chains with at least 20 stores nationally. Included are candy stores, bakeries, and ice-cream parlors.

The FDA’s proposed guidelines specify that chains post the calorie counts of foods and drinks on menus and menu boards or next to the food item, such as at a salad bar. The menu is to prominently exhibit the calorie content of each item in a way customers can see easily, giving them the same information packaged foods prepared at home currently provide. The information must be displayed in “clear and conspicuous” print and colors.

Many cities and states have passed laws requiring calorie labeling on menus, beginning with New York City in 2008. California implemented a similar law in January, although many counties are waiting for the release of the federal guidelines before they begin enforcement. Some fast-food chains there, such as McDonald’s and Starbucks, are displaying calorie counts on menus in some of their stores.

The rules are intended to curb the national obesity epidemic since, according to FDA estimates, one third of the calories people consume yearly come from food eaten out. In a statement issued yesterday, Kathleen Sebelius, Secretary of Health and Human Services said, “Giving consumers clear nutritional information makes it easier for them to choose healthier options that can help fight obesity and make us all healthier.”

Excluded from the rules are businesses whose primary product is not food sales but that sell it, such as bowling alleys, airports and airplanes, amusement parks, hotels and movie theaters. Alcohol is also excluded.

Saturday, March 1, 2008

On February 14, a man staying at the Valley View Extended Stay America hotel in Las Vegas, Nevada was hospitalized after experiencing respiratory distress. The man lapsed into unconsciousness and has been at the hospital ever since.

Since the bills at the hotel were going unpaid, Extended Stay America began to evict the man from the room. Another man, described as either a friend or relative, went to the hotel on Thursday to collect the personal belongings of the hospitalized man.

According to Las Vegas Metropolitan Police Department Deputy Chief Kathy Suey, he found several vials of a white substance. He brought them to the attention of the hotel manager, who called police.

Initial tests, which further tests confirmed on Friday, the substance was the deadly toxin ricin, an extremely dangerous biological agent. Ricin is extracted from castor beans through the waste produced in the manufacture of castor oil. It is currently being used in cancer treatment research. There has been research for its use as a chemical/biological warfare agent. An amount smaller than the point of a pin will kill a human being. It is estimated to be several thousand times more toxic than cyanide and there is no known antidote.

Police cordoned off the area around Valley View between Flamingo Road and Harmon Avenue. Three employees and the man who made the discovery were taken to the hospital as a precaution. So were three police officers. They are all reported to show no signs of poisoning.

Nevada National Guard and other emergency services responded to secure the area. Residents at the Extended Stay America were allowed back into the building late Thursday. The hotel reopened fully on Friday after the room and other areas of the hotel were decontaminated.

The man whose room it was “is in critical condition and he is unable to speak with us right now. We have no indication why the ricin was in that room,” said Deputy Chief Suey.

“Usually, if [ricin victims] survive the first three to five days, they usually do fine,” Dr. Lawrence Sands told CNN. However, survivors often have long-term organ damage.

At least three pets were found in the room. “Two of those pets are fine. One of the pets is deceased or was put down,” Suey said. “The dog that was in there was without food and water for a week,” she added that there was no reason to supect it was exposed to ricin. Castor beans were also found in the room.

Officials have also recovered from the room a firearm, as well as an “anarchist” text containing an article on ricin.

Federal Bureau of Investigation spokesperson Richard Kolko said the incident is being treated as a criminal matter and did not appear to be related to terrorism “based on the information gathered so far.”

Captain Joe Lombardo of the Las Vegas Metropolitan Police Department said that ricin is not illegal to own unless it is intended for the poisoning of a person, adding that “We did have enough ricin to be of concern.”

In 2003, a man committed suicide in Las Vegas using ricin. There have also been a few incidents where ricin powder was found in the mail. Also in 2003, the United Kingdom had the Wood Green ricin plot which in the end found no ricin.

In 1978, Bulgarian defector Georgi Markov was famously assassinated in London with ricin injected with the tip of an umbrella.