Sunday, December 18, 2011

Ku6 Closes Shanghai Office, as its NASDAQ Shares Dip Below $1

It has never been a smooth ride for Ku6.com (NASDAQ:KUTV), which is currently China’s fifth-largest video-streaming and sharing site. And now, as its stock sinks to below US$1 per share, some staff are facing job losses, which are being portrayed in some sections of the Chinese media as “violent cuts” to its staff and operations.

Ku6 – which was acquired by Shanda Interactive (NASDAQ:SNDA) in 2009, but has proven problematic and unprofitable for Shanda – insists it’s just restructuring. The company says that its games and music video channels, which were based in Shanghai, will be moved to Beijing HQ along with staff who wish to relocate. The Shanghai office will close. Some staff are, however, being let go – with Ku6 stating that they’re voluntary redundancies – but no figures have been given. Ku6’s investor relations website says that it has 610 employees in total.

Despite being one of China’s first video sites at the turn of the last decade, Ku6 was soon superseded by Youku (NYSE:YOKU), Tudou (NASDAQ:TUDO), and Baidu’s (NASDAQ:BIDU) Qiyi.com, in terms of market share in this sector.

As a result, it has also struggled to keep pace with the maturing video market in China in which Chinese consumers have been demanding increasingly costly licensed TV shows – the rights to which can now cost as much as US$100,000 per episode.

Ku6 listed on NASDAQ in 2005. Its net loss in Q3 2011 was $13 million, about on a level with its losses at the same period in 2010. Its stock is currently at its lowest ebb, closing before the weekend at 98 cents per share.

[Source: DoNews - article in Chinese]



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Tudou Releases Proof of Youku’s Copyright Foul Play

Following the recent news that Tudou is suing Youku for 150 million RMB in copyright infringement and Youku is countering the attack by claiming Tudou was distributing exclusive content, Tudou has released proof that they are in the right.

The main content at the centre of the controversy is called “Kangxi Lai Le”, a popular Taiwanese entertainment show Tudou purchased the exclusive rights for. It seems this is a very sensitive and important issue for Tudou who sees Youku as its biggest competitor in the Chinese online video market. Walking through local Beijing subways, I have noticed Tudou ads playing ads for “to Kangxi Lai Le”, in a way to engrain in the public’s mind that it is theirs and not Youku’s.

Here is some evidence, Tudou is using to prove that Youku is unlawfully using their content plus defending against Youku accusations:

A screenshot of Youku, showing Youku pirated 7 episodes and racked up 240 million views

A screenshot of Youku selling ads to make money before running the “Kangxi Lai Le” episodes
A screenshot of “Kangxi Lai Le” hitting number one in the rankings of Youku
A copy of the certification that shows Tudou has the rights to distribute content from the Korean production company, SBS, which Youku claimed was exclusive to them. The certificate says it is “non-exclusive” content.

This fight could get ugly. Perhaps they could produce a series about it and see who gets the most views!

 

Related posts:

  1. Sohu's online video business gain market share
  2. Youku Launches Video Searching Engine Soku.com
  3. With Soku, Youku Wants the Video Search Market Competing with Baidu


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Photo Sharing App Tuding Launched Windows Phone 7 Version

Tuding (or thumbtack) released the Windows phone 7 version of its No. 1 social photo sharing app, making it the first one of its kind to cover all major smartphone platforms including iOS, Android, Symbian and BlackBerry. The app to date boasts a user base of more than 4.5 million in China.

WinPhone 7 version of Tuding catered for as well as leveraged on Windows Phone 7 OS’s design concept, you can hands-down notice the differentiation in its app interface (pictured below), which patently borrowed Windows Phone 7’s Metro design language.

Except for the facelifting, what’s under the hood is still as strong as its other counterparts, the core 21 filters, location tagging as well as photo sharing among the most popular Chinese SNS including Sina Weibo, Renren, kaixin001 and so on.

Photo sharing has always something hot among Chinese startups and entrepreneurs, we’ve seen so many similar apps like Kaixin001’s Tuteng (Android and iOS). It is estimated that in the future 90% of photos would be shot by mobile devices. The saying is strongly evidenced by the fact that iPhone is the hottest photo-taking device on Flickr. The market is huge, and the ultimate ruler is yet to stand out from its peers.

Related posts:

  1. Global Mobile Game Awards at GMIC2011 – Submit Your Mobile Game!
  2. Angry Birds Wants To Beat Disney in China Within 2 Years
  3. Dianping: Mixing the Secret Sauce of Reviews, LBS and Group-buying


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India’s Smartphone Market: 68% Annual Growth, iOS captures 2.6%

As per IDC’s latest mobile phone tracker data, India witnessed a growth of 6% (y-o-y) in mobile phone shipments, but there was a minor decline of 3% Vs. previous quarter (January-March 2011).

In absolute terms, the market clocked a shipment of 42.8 million units in Q2 2011.

The smartphone segment showed an impressive growth of 68% year-on-year and a marginal growth of 0.4% over the Jan-March 2011 quarter, to garner a share of 5.6% of the overall mobile phone market.

- In Q2 CY 2010, the share of smartphones was 3.6% of the overall mobile phone market, in unit terms.
- Dual-SIM handset shipments were notable, with a sequential growth of 25.2 per cent over the previous quarter

A noteworthy development in the quarter was that smartphones with average sales values of INR 18,000 and above witnessed a significant growth of 31% over the preceding quarter and a whopping 96% growth over the year-ago quarter, Q2 CY2010

  • Nokia continued to lead the mobile phone market and the smartphone segment in Q2 2011, with 25% and 45.8% shares, respectively. The Finnish giant has focused on introducing and promoting dual-SIM handsets to a significant extent, among other measures.
  • Samsung, second to Nokia with shares of 15% and 21% in the mobile phone market and the smartphone segment, respectively, also clocked the strongest smartphone shipment growth during the quarter, fuelled by its Galaxy series of handsets. In the smartphone segment, RIM occupied the third place with a share of 15%.
  • The charge of India-based vendors continued to be strong in Q2, with the top 5 India vendors, including Karbonn, Micromax, Lava, Spice and MAXX, accounting for a share of 19% of the overall shipments. This performance is to be gradually extended into the smartphone segment in future as they add low-cost smartphones on the Android platform to their portfolio.

OS : iOS vs. Android

- Apple’s iOS platform captured a share of 2.6% in Q2 2011, as against a negligible share in the previous quarter.
- In terms of growth momentum, Android led with the highest growth rate of 10%, quarter-on-quarter.

2015 Outlook

2011 is expected to close with mobile phone shipments of around 187 million units. IDC forecasts the market to clock 328 million by 2015, at a compound annual growth rate (CAGR) of 14.5% during the period of 2010-2015. The smartphone segment is forecast to see a much higher CAGR of 68.4% during the same period and to achieve a shipment of 81.5 million by 2015.

Related posts:

  1. Report: Mobile Phone Shipments Fall 3%, Smartphone Market Grows at 96% Y-o-Y
  2. The Indian PC Market witnesses growth in Q2
  3. The Global Smartphone Market– Nokia Rules, Samsung and HTC Grows
  4. SmartPhone Sales Market Share – Symbian Falls, Android Rises
  5. Report: PC sales up 6.1 % from last year, Dell beats HP


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Xiaomi Sells 100,000 Phones in A Few Hours, Ruins My Wife’s Christmas

xiaomi2

Sorry, we're out of stock!

China’s Xiaomi phone finally went on sale to the public this Sunday at midnight. Just a few hours and 100,000 phones later, though, the public sale was over. A message posted to Xiaomi’s official site (pictured) said “Sorry!” and told users that stock for December had been sold out. When would the phone next be available? The post doesn’t say, telling users instead to watch Xiaomi’s BBS forum for further information.

The news came as a shock to many Xiaomi fans, who have been bombarded over the last few weeks by Xiaomi’s most recent advertising campaign. Banners Xiaomi ran on its own site and on major tech news sites read “Xiaomi doesn’t lack stock,” a reference to the limited number of available handset units that made the shipping of Xiaomi’s 300,000 pre-ordered units so slow. The message was quite clear: ‘we’ve got plenty of phones in stock now.’

Based on the response to Xiaomi’s “Sorry!” post on their own BBS forum, plenty of Xiaomi fans are feeling tricked. The thread, which is now over 9,000 pages long, begins with happy posts from the lucky fans who got in their orders between 12 midnight and 4 A.M. on Sunday and were able to successfully purchase a phone. But after orders ran out, people began expressing their discontent. One user wrote:

Xiaomi fans wait through round after round [of sales], the way Xiaomi does things really is a bit irresponsible. I hope Mr. Lei and Xiaomi’s workers can work quickly and well to do a real open sale and be responsible to everyone.

Other users took things a bit further. Shortly after the announcement that after just 100,000 sales Xiaomi was out of stock, one user posted this message in mocking imitation of the advertising slogan Xiaomi used to promote the sale:

Xiaomi doesn’t lack stock, it just lacks morals. Xiaomi doesn’t trick money, it just tricks people. Xiaomi doesn’t shock people, it just Lei Jun [the character for Lei's surname also means "to shock" in net slang]. Lacking morals, tricking people, Lei Jun!

xiaomi

This user is not happy with Xiaomi

That might be a little extreme, but I can understand the frustration. A month or so ago, my wife’s phone was stolen. I knew Xiaomi phones were going to go on sale on the 18th, so she decided to wait until then to buy a new phone. My phone is also quite old, so we figured we’d both give Xiaomi a try and make it our Christmas present to each other. On Saturday, we were out of town doing some work, but when we arrived home just after 4 A.M. Sunday morning, instead of immediately going to bed, I hopped on the computer to order our new phones (what can I say, I was pretty excited about it). Imagine my surprise when I discovered that barely four hours after the “open sale” had started, it was already over, that “doesn’t lack stock” apparently meant just 100,000 units, and that there was no word on when the next sale would be!

100,000 units might seem like a lot, but this phone sold 300,000 units in less than two days back in September, and the buzz around it has grown substantially since then. Xiaomi’s management team is extremely experienced, and there’s no way they thought 100,000 units was going to meet the demand, or even come close. The question, therefore, is why Xiaomi advertised so publicly that it “didn’t lack stock.” Why make that the main selling point of your advertising campaign if your stock is actually so lacking that you sell out in less than five hours?

The cynical answer would be that Xiaomi is just trying to build hype and mystique by keeping the phones rare. At the same time, by advertising that they weren’t rare, Xiaomi attracted tons of interested buyers, which gave rise to the current situation: hundreds of thousands — perhaps millions — of people likely tried to buy the Xiaomi phone but couldn’t, and now they’re telling their friends and coworkers about how quickly the things sold out. It’s a word-of-mouth campaign built on the frustration of Xiaomi fans. I’m sure it’s good for business, but it does seem like a pretty rotten Christmas present for the company to give its fans.

We reached out to Xiaomi for comment on this story early Sunday morning, but have yet to hear back.


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PlayStation Vita Launches in Japan

ps-vita

PS Vita at 2011 Tokyo Game Show

This past Saturday Sony’s PlayStation Vita went on sale in Japan, as the company hopes to close what has been a very difficult year on a high note. Reportedly there were early morning line-ups at various locations around Japan, and in some places people even began queuing the night before.

The Vita comes with a price tag of about 24,000 to 30,000 yen (or about $310 to $385), which is considerably higher than rival Nintendo’s 3DS after its 40 percent price cut, which has seen an improvement in sales thanks to the low price and an assortment of new games.

Andrew House of Sony Computer Entertainment told PC world today that Nintendo’s “handheld strategy has been far more focused around a younger family-and-kids audience than our devices have,” and I think this is an interesting contrast. For Sony, the hardcore gamer demographic is probably less likely to be impacted by the rise of smartphones than casual gaming, where we have seen titles like Angry Birds do so well.

For those of you who would like to get a peek at what a PS Vita looks like booting up for the first time, the always-excellent Brian Ashcraft has a demo video up that shows the entire process:


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Alex Caro from Akamai talks about the hyperconnected world

The world is growing more connected, something Akamai Technologies calls “hyperconnection”. The cloud-based platform company held their annual customer conference, Akamai Edge, last October to demonstrate new solutions for application acceleration.

Alex Caro, the incoming Chief Technology Officer and Vice President of Services for Akamai’s Asia Pacific Japan region was recently in town to talk more about the company’s plans for the region. According to Alex, Akamai usually deals with larger enterprise but also work with smaller companies who are growing. “We are fundamentally about software. How you make smart software and how that software can help in solving different problems like  delivery of content,” said Alex. He views Software as a Service (SaaS) as a great equalizer for companies of all sizes and sees Akamai as playing a role of an enabler for new and interesting applications coming out of different places.

Akamai is taking a strong interest in Asia. Some trends in the region that Alex has observed, and shared with us, is that the mobile penetration in Asia is much higher than that in the US or Europe. “I really do think that Asia is going to be the place that we are going to try out some of the more interesting mobile technologies,” said Alex on Akamai’s 2012 plans for the region.

“Asia seems to be just younger, overall. So, I think the types of applications that are interesting in the Asian market tend to be more social, tend to be more media, tend to be more gaming. There’s quite a bit of gaming that’s very important in the Asian market. Where’s in the other markets, we see more growth in the enterprise space,” commented Alex on the Asian region, “the botom line is, we can’t treat Asia as a region. Each country has their own individual perspective. I think that’s something that I won’t say we are good at but we are getting much better at it.”

Alex also acknowledges that each country has their own strengths which makes it even more important that Akamai establishes strong partnerships locally. Some of the partners that Akamai is currently working with is Ericsson. “We are very good, Akamai obviously, at getting Internet traffic delivered from across the Internet or getting Internet traffic delivered to fixed line users. But once traffic hits the radio frequency spectrum, or the cellular network, we don’t have a lot of acceleration that we can apply to that. So, our partnership with Ericsson, given that in Asia there’s so much more mobile traffic, is how do we work with Ericsson, the biggest provider of cellphone infrastructure, so that at at the higher level, when traffic is coming from Akamai and it hits an Ericsson device inside of an operator, that Ericsson has made a relationship with that operator, that traffic then continues to be accelerated into the mobile device itself.” This partnership puts Akamai in the position to provide end-to-end accelerated services for business such as mobile banking. The technology that allows the prioritizing of traffic is already available, and Akamai is looking to put this technology into the hands of customers in a way that these customers can find value in it.

Other than looking to bring Akamai’s technologies into the cellular network, the company is also eyeing the enterprise networks. Akamai, having always been in the public Internet, has partnered RiverBed to assist in its entry into the enterprise world.

Having been with Akamai from its early startup days, Alex understands about building technology products for the future. He advises startups to decompose their application up front, understanding what has to run in which layer and also the services that are available on the cloud. “In the old days, you basically have to do everything yourself. You had to create the database, you had to create the application server, you had to create the front-end web servers. It is really important to decompose your application in a way that you have very clean interfaces between those layers. If you have clean interface between them, whether they are web API layers or RESTful URLs, that gives you the ability as a software developer to take that stuff and ship it out and put is some place else,” advises Alex. Doing this retroactively can be disruptive to a company’s operations and also cuts you off from technology choices.

Akamai is expecting to grow its presence more in Asia for 2012. To do this, Alex understands that investing in the right people is crucial. On top of that, Akamai has a lot to learn in better understanding the markets. “We talked about the markets and we need to understand the markets better. And each of the markets we are trying to develop what are the key, strategic customers that we need to have a deeper relationship with because it is really important to have long-term relationships. We have been a company that has been around for a reasonable period of time but I don’t think we have the relationships to the depth that we need to in Asia. So that is going to be a key focus,” said Alex. Alex also mentions that Akamai is changing the way their products are rolled out to the markets. Before this, new products were pushed to the US and European markets before going global. Akamai aims to change this discipline by going globally from day one, something that would take time to implement.

Probably the most memorable advice from Alex throughout the interview was his comment on building technology products. “It is not about the technology, it is about making it simpler. I think that is what’s going to win the day. Let’s keep the complexity under the covers.”


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Thanks To A Startup, Laos Will Have An Official Lao Unicode Font in 2012

Laos font

Lao Unicode font coming to your mobile.

For many years, the people of Laos haven’t been able to use the Lao language on their mobile phones because it isn’t standardized or supported. So as a substitute, many are communicating in Thai or English via their mobile phones.

That has caused many locals, especially the younger generation, to use less of the Lao language, which may potentially bring the language to the brink of extinction if the dire situation goes on.

The startup XY Mobile understands the problem and has worked hard to bring the Lao language onto mobile phones. And last week, I heard from co-founder Allan Rasmuden that the startup has reached a major milestone — The Lao government has agreed to adopt the Phetasarth, the standardized Lao font, on mobile phones and computers across Laos. Here’s the announcement:

Ministers and committee agreed to accept Phetasarth OT as the standard national font and urged (notice and decree will be adopted for support) operators to work with companies to support Lao language on mobile phones and as content. Mobile phones sold in Laos in the future will have some sort of Lao support.

It is time for us to teach our younger generation not to use “karaoke language” to communicate and to provide access to local information via networks. Lao is a culture and a nation with unique language and ways of life. We should adhere and support this both in via technology and other media. The MPT is a single entity that acts on behalf of the nation on telecommunications and information technology which will set the standards so that others can follow or adopt. Phetsarath OT will launch on 1/1/2012.

To many of us, bringing a font onto mobiles might sound simple. But as you may have noticed, the Lao language has a unique font type and shape, which has required the XY Mobile team to create the Lao font from scratch. It isn’t just digitizing the Lao typeface. It is also about ensuring that the locals know how to use the Lao language on their mobile phones. Anousak, managing director at XY Mobile, spent almost five years to make and perfect the Phetsarath, the name of the new Lao font.

XY Mobile is solving a real problem even though it isn’t as cool as building a Facebook or Instagram. Unfortunately, the announcement doesn’t bring any revenue to the team. It’s still a longgg way to go for XY Mobile before they can make some money. Allan shared with me more:

That is half the battle won, however no handsets nor content is available in Laos (until XY Mobile launch their devices). But with the new decree all stakeholders will come together and start to develop with us.

Other handset makers will not issue the Lao language themselves but would make use of us as a local distributor – unfortunately they want us to pay for this, which means we have to buy handsets from them and re-sell them. Again we don’t want to wait for this so we will make our own handsets and tablets.

We will of course use this new decree to try and secure some funding for our project. We are still making this with our own money.

Congrats to the team for its first milestone and we hope more success will follow after this announcement. It’s a really cool project that XY Mobile is working on.


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Partner Event: Geeks on a Plane in Bangalore

GOAP (Geeks on a Plane) is visiting India and the last leg, Bangalore starts from Dec 17th onwards. While there are a few invite-only discussions that we have planned with them, Dec 18th (Sunday) is when you can come over to Jaaga for SuperHappyDevHouse event, which is jointly organized by Jaaga and Pluggd.in.

SuperHappyDevHouse is a celebration of Hacker Culture. It is an opportunity to show off interesting projects you’ve been working on,  hear about new ideas, get collaborators, learn new things, watch tech talks or hacker movies, read science fiction, and generally hang out with other smart interesting people in the startup / software subculture here in Bangalore.

We’ll have several zones for you to get your geek on:

The Hacker Lounge with tables and power strips for people to work on projects.

Geek Theater where we can line up tech talks, tutorials, and hacker movies

Gaia cafe sit, sip coffee or tea, nibble on snacks and look like the hipster hacker you are.

The Soap Box Auditorium where people can give short lightening talks about their projects, ideas or startups. Talks will be limited to 6 minutes each and then a couple minutes for questions. For people who would like to give a longer barcamp style talk, please introduce your topic with a lightening talk and then bring everyone interested to another spot for a deeper discussion.

SuperHappyDevHouse will start at 1pm and run until 10pm. Currently the GOAP plan to hang out with us from 3pm to 7pm. For the time that they are here we want to use the lightening talks to show them what real innovative startups in Bangalore are doing.

Related posts:

  1. Partner Event ‘Financing & Growing Tech Companies out of India’ [Nexus Venture Partners/ Bangalore]
  2. Event Coverage: MoMo Bangalore (March 25th)
  3. Partner Event: LinkedIn and Pluggd.in Presents A Discussion On Products,UX [and more]
  4. Partner Event: Echelon – June, 2010 [Singapore]
  5. Partner Event: Sramana’s Strategy Roundtable


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