The Internal Revenue Service began this month selecting thousands of taxpayers for audits — even though the IRS has no reason to think they’ve underpaid their taxes. It’s part of the IRS’ National Research Program.
Monthly Archives: October 2007
Map Making Firms Rumored to Sell for Billions
The latest hot segment of the technology business appears to be maps.
MapQuest, Yahoo! Maps and GPS (global positioning system) navigation in cars are very popular, and all of those maps came from one of just two mapmaking companies.
Both of those companies now are being snatched up by bigger companies for billions of dollars.
Creating a digital guide to the world’s highways and street addresses may be the cutting edge of technology, but it is also just long hours on the road.
Jeremy Onysko’s orange van has four digital cameras mounted on the roof. They are snapping pictures every 30 feet — recording road signs, lane markings and anything else a driver might need to know.
Fall Colors: Upper Mississippi Valley
Nikon’s Small World Gallery
Since 1974, Nikon has sponsored a yearly photo competition for images that delve into the worlds beyond the reach of the unaided human eye. The camera maker feted the photographers who made the top 20 “photomicrographs” in Nikon’s annual Small World competition at New York’s Explorer’s Club. The winners were drawn from a pool of 1,709 submissions.
The dozen images collected here (the top 10 images, plus two Wired News picks) capture facets of living organisms that have a technical meaning to the trained specialist, but appear to be pure art to the layperson. The striking images convey something both strange and alien that could almost be sold as the first glimpses of extraterrestrial life. Yet, many of the objects presented here could not be more mundane or down-to-earth: A piece of ivory, a typical aquarium fish, a drop of sea water.
Ballmer: “Google Reads Your Email and We Don’t”
Microsoft CEO Steve Ballmer took a knock at one of his chief rivals during a speech to an audience in the U.K., saying Google reads customer email as part of a failed bid to drive ad-based revenue.
The software giant’s chief made the remarks during a discussion about consumer software revenue models, and Ballmer used the dialogue as an entry point to take his shot at Google. The video is available to watch via the web site Mydeo.com. Ballmer made his remarks after an audience member asked him if an advertising model could support software business in the future. The CEO said a combination of models – – commercial and ad-paid – – would go forward.
“What’s a good example? Will online publications be largely ad-funded as things move from the physical world to the online world?” Ballmer said. “I think the answer is yes.
“Have we seen the migration of things even like email? . . . Our Windows Live Hotmail, in and of itself, doesn’t generate much ad revenue. So we’ve had to put, essentially, a whole portal around it because the traffic around it is very valuable but it’s not very easily monetized in the context of mail.
“Google’s had the same experience, even though they read your mail and we don’t,” Ballmer said, to chuckles and and a couple of gasps in the audience. “That’s just a factual statement, not even to be pejorative. The theory was if we read your mail, if somebody read your mail, they would know what to talk to you about. It’s not working out as brilliantly as the concept was laid out.”
“NBC is an AT&T Sock Puppet”
How do I say it more clearly? Honestly, folks, we need better leadership than this in the seats of media power, and until that happens, we’ll just continue to miss the point, over and over and over again.
At an anti-piracy summit in Washington Wednesday, NBC’s Jeff Zucker actually called for AT&T and other Internet-service providers to install filtering software to, and get this, “weed out pirated content and unclog networks.” This is one of the most dangerous and desperate things I’ve ever heard come out of the mouth of someone who, among other things, is charged with certain responsibilities vis-a-vis the First Amendment. And the REAL PROBLEM is that this line was likely penned by the Telcos, not Zucker or his writers. I mean, come on! “Unclog networks?” Where have we heard that before?
AT&T would LOVE to filter the Web.
Has Managerial Capitalism Peaked?
There is a growing call for a redress of the imbalance between what John Bogle terms managerial capitalism and owners’ capitalism. Bogle describes owners’ capitalism in his book, The Battle for the Soul of Capitalism, as “an enormous transfer of wealth from public investors to the hands of business leaders, corporate insiders, and financial intermediaries.”
Headlines remind us of very large payouts to CEOs, regardless of their performance. (In fact, it could be argued that in many cases, payouts are inverse to success, since many have been occasioned by the firing of the recipients.) Some critics contend that managers have received a disproportionate share of the fruits of corporate success, leaving too little for workers or owners. Even hedge funds have been derided as better management compensation devices than investment vehicles.
What’s the reason for these phenomena? According to one report, Michael Jensen and Kevin Murphy, in a book to be published in the next several months, C.E.O. Pay and What to Do About It, lay much of the blame at the feet of boards of directors. They claim that CEOs in public companies should be answerable to directors for poor performance but in fact are not. Directors, representing an indirect form of governance, are poor representatives of owners. They are far too lax in influencing employment contracts and management incentives. The options they grant are too generous and fail to take into account the cost of capital employed during the term of the option. The severance payment arrangements to which they agree are too lavish, regardless of the reasons for severance.
A “Chat” with Garrison Keillor on his new book: Pontoon
At the beginning of Keillor’s hilarious new novel, Evelyn sets in motion a circus of zany events when she dies in her sleep — despite the fact that she’s an inveterate insomniac. In a no-nonsense note to her daughter Barbara, Evelyn stipulates that she wishes to be cremated, with her ashes sealed up in a bowling ball and “dropped into Lake Wobegon off Rocky Point.” What’s more, in the same letter Evelyn unapologetically reveals that for years she’s been conducting a passionate love affair with a retired TV weatherman.
Google & Privacy
It’s been fun and edifying watching Google’s PR engine at work. Eric Schmidt, Google’s CEO, has been evangelizing the need for “international privacy standards.”
Google’s most powerful PR tool to-date is the comforting and accessible video series featuring Maile Ohye, a personable young woman who is a senior support engineer, giving a chalk talk about what information Google captures when you search, how it uses that information and how you can control it. The two videos in the series to-date are designed to be very comforting.
The Inevitable March of Recorded Music Towards Free
The DRM walls are crumbling. Music CD sales continue to plummet rather alarmingly. Artists like Prince and Nine Inch Nails are flouting their labels and either giving music away or telling their fans to steal it. Another blow earlier this week: Radiohead, which is no longer controlled by their label, Capitol Records, put their new digital album on sale on the Internet for whatever price people want to pay for it.
The economics of recorded music are fairly simple. Marginal production costs are zero: Like software, it doesn’t cost anything to produce another digital copy that is just as good as the original as soon as the first copy exists, and anyone can create those copies. Unless effective legal (copyright), technical (DRM) or other artificial impediments to production can be created, simple economic theory dictates that the price of music, like its marginal cost, must also fall to zero. The evidence is unmistakable already. In April 2007 the benchmark price for a DRM-free song was $1.29. Today it is $0.89, a drop of 31% in just six months.