Filed under: Press releases, Products and services, Consumer experience, Competitive strategy, Microsoft (MSFT), Apple Inc (AAPL), Amazon.com (AMZN), Marketing and advertising, Sony Corp ADR (SNE)

Amazon.com (NASDAQ: AMZN) and Sony BMG, a joint venture of Sony Corp. (NYSE: SNE) and Germany’s Bertelsmann Media Group, announced yesterday that Amazon’s new MP3 store will soon carry the label’s entire catalog. This move makes Amazon.com’s MP3 store the only digital store to offer consumer’s Digital Rights Management-free MP3 tracks from all four major labels, with Sony BMG joining privately-held EMI Group, Warner Music Group (NYSE: WMG), and Vivendi (OTC: VIVEF)’s Universal Music Group.

Previously, Sony had announced a new promotion of album cards, which would allow listeners to download DRM-free MP3s, but it was limited to only about three dozen albums. The new agreement brings the entire catalog to Amazon.

The major point here is that Amazon’s store now offers tracks that are playable on virtually any platform or device, from Microsoft (NASDAQ: MSFT)’s Zune and Apple (NASDAQ: AAPL)’s iPod to various off-brand players. In a press release given to Ellen Livshin of OutCast Communications, Amazon.com Vice President for Digital Music Bill Carr revealed this very fact: “Our Amazon MP3 customers will be able to choose from a full selection of DRM-free music downloads from all four major labels and over 33,000 independents that they can play on virtually any music-capable device.” U.S. Sales head for Sony Thomas Hesse echoed these sentiments and added that the label is “excited to be working with Amazon as they continue to build new markets for digital music.”

I’ve remarked before that the Amazon.com MP3 store would increase competition and drive the digital market forward, and with this announcement it seems that many predictions about the online music realm are being realized, albeit much earlier than expected. Many had pointed to mid-year as the time when DRM technology would disappear completely, but as we can now see, that timeline will be January, at least for one store.

The move is also a potentially devastating blow to Apple’s iTunes Store, which had headed up the move away from DRM but has not great success, managing to score only the EMI catalog early last summer. Whatever the case may be, the Amazon.com move will increase the competition and hopefully begin the revitalization process the music industry needs. All they have to do is promote it and get consumers interested.

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Filed under: Press releases, Products and services, Consumer experience, Competitive strategy, Microsoft (MSFT), Apple Inc (AAPL), Amazon.com (AMZN), Marketing and advertising, Sony Corp ADR (SNE)

Amazon.com (NASDAQ: AMZN) and Sony BMG, a joint venture of Sony Corp. (NYSE: SNE) and Germany’s Bertelsmann Media Group, announced yesterday that Amazon’s new MP3 store will soon carry the label’s entire catalog. This move makes Amazon.com’s MP3 store the only digital store to offer consumer’s Digital Rights Management-free MP3 tracks from all four major labels, with Sony BMG joining privately-held EMI Group, Warner Music Group (NYSE: WMG), and Vivendi (OTC: VIVEF)’s Universal Music Group.

Previously, Sony had announced a new promotion of album cards, which would allow listeners to download DRM-free MP3s, but it was limited to only about three dozen albums. The new agreement brings the entire catalog to Amazon.

The major point here is that Amazon’s store now offers tracks that are playable on virtually any platform or device, from Microsoft (NASDAQ: MSFT)’s Zune and Apple (NASDAQ: AAPL)’s iPod to various off-brand players. In a press release given to Ellen Livshin of OutCast Communications, Amazon.com Vice President for Digital Music Bill Carr revealed this very fact: “Our Amazon MP3 customers will be able to choose from a full selection of DRM-free music downloads from all four major labels and over 33,000 independents that they can play on virtually any music-capable device.” U.S. Sales head for Sony Thomas Hesse echoed these sentiments and added that the label is “excited to be working with Amazon as they continue to build new markets for digital music.”

I’ve remarked before that the Amazon.com MP3 store would increase competition and drive the digital market forward, and with this announcement it seems that many predictions about the online music realm are being realized, albeit much earlier than expected. Many had pointed to mid-year as the time when DRM technology would disappear completely, but as we can now see, that timeline will be January, at least for one store.

The move is also a potentially devastating blow to Apple’s iTunes Store, which had headed up the move away from DRM but has not great success, managing to score only the EMI catalog early last summer. Whatever the case may be, the Amazon.com move will increase the competition and hopefully begin the revitalization process the music industry needs. All they have to do is promote it and get consumers interested.

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Filed under: Rants and raves, Competitive strategy, General Motors (GM), Politics

General Motors Corp. (NYSE: GM) reached a milestone of corporate governance this month, as it released its first-ever contribution list to section 527 organizations. In essence, political influence dollars. GM apparently wants to further its efforts toward making corporate transparency for its stockholders commonplace. It’s a good move by the world’s largest automaker.

For 2007, GM’s contributions to section 527 organizations are like this:

• Democratic Attorneys General Association (DAGA) — $5,000.00
• Democratic Governors Association (DGA) — $10,000.00
• Democratic Governors Association (DGA) — $5,000.00
• Republican Governors Association (RGA) $ –15,000.00

In addition to the above amounts, GM made a few contributions in 2006 which it expects to be reported by the organizations below in 2007:

• Democratic Attorneys General Association (DAGA) — $5,000.00
• Republican Governors Association (RGA) — $15,000.00

Nothing was contributed to state or local candidates in any state as reported by GM, however. Based on the millions in lobbying amounts given away by GM every year, the above amounts seem like drops in the proverbial bucket. At least the report (PDF link) is being voluntary disclosed. With all the money the automaker gave to Democratic and Republican associations, one could buy a newer Escalade, eh?

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Filed under: Rants and raves, Competitive strategy, General Motors (GM), Politics

General Motors Corp. (NYSE: GM) reached a milestone of corporate governance this month, as it released its first-ever contribution list to section 527 organizations. In essence, political influence dollars. GM apparently wants to further its efforts toward making corporate transparency for its stockholders commonplace. It’s a good move by the world’s largest automaker.

For 2007, GM’s contributions to section 527 organizations are like this:

• Democratic Attorneys General Association (DAGA) — $5,000.00
• Democratic Governors Association (DGA) — $10,000.00
• Democratic Governors Association (DGA) — $5,000.00
• Republican Governors Association (RGA) $ –15,000.00

In addition to the above amounts, GM made a few contributions in 2006 which it expects to be reported by the organizations below in 2007:

• Democratic Attorneys General Association (DAGA) — $5,000.00
• Republican Governors Association (RGA) — $15,000.00

Nothing was contributed to state or local candidates in any state as reported by GM, however. Based on the millions in lobbying amounts given away by GM every year, the above amounts seem like drops in the proverbial bucket. At least the report (PDF link) is being voluntary disclosed. With all the money the automaker gave to Democratic and Republican associations, one could buy a newer Escalade, eh?

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Filed under: Rumors, Products and services, Consumer experience, Competitive strategy, Apple Inc (AAPL), PepsiCo (PEP), Amazon.com (AMZN), Marketing and advertising, Technology

Billboard.com announced today that Amazon.com (NASDAQ: AMZN) and PepsiCo (NYSE: PEP) are set to reveal a new “promotion in which Pepsi customers can build up points by registering codes on bottle-caps and exchange them for merchandise and downloads from Amazon.com.” The announcement from the two companies is rumored to commence with a commercial airing during this year’s Super Bowl game, and the promotion will last through the end of this year.

The promotion is also due to coincide with the full launch of Amazon.com’s MP3 store, which was unveiled in a demo form in autumn. The two companies will utilize tracks and videos from three of the four major music labels, Warner Music Group (NYSE: WMG), privately held EMI Group, and Sony BMG, a joint venture of Sony Corp. (NYSE: SNE) and Germany-based Bertelsmann Media Group; Vivendi (OTC: VIVEF)’s Universal Music Group will sit out the promotion, though that label will still offer music in the MP3 store. Sony BMG joins the MP3 market with its involvement in the promotion after announcing the sale of MP3 cards earlier this week.

This promotion illustrates the continued demand for high-quality MP3 tracks free from anti-piracy technology, like Digital Rights Management (DRM), which many expect will disappear by mid-year. The full launch of the Amazon.com MP3 store gives consumers another destination for media that is playable across numerous players, acting in direct competition to Apple (NASDAQ: AAPL)’s iTunes Store. Apple spearheaded the move away from DRM last spring, after securing a deal with EMI to drop the technology. The benefit of the promotion is that it will broaden the number of consumers that are aware of high-quality tracks, while increasing the competition that will occur to spur continued development in this area.

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Filed under: Rumors, Products and services, Consumer experience, Competitive strategy, Apple Inc (AAPL), PepsiCo (PEP), Amazon.com (AMZN), Marketing and advertising, Technology

Billboard.com announced today that Amazon.com (NASDAQ: AMZN) and PepsiCo (NYSE: PEP) are set to reveal a new “promotion in which Pepsi customers can build up points by registering codes on bottle-caps and exchange them for merchandise and downloads from Amazon.com.” The announcement from the two companies is rumored to commence with a commercial airing during this year’s Super Bowl game, and the promotion will last through the end of this year.

The promotion is also due to coincide with the full launch of Amazon.com’s MP3 store, which was unveiled in a demo form in autumn. The two companies will utilize tracks and videos from three of the four major music labels, Warner Music Group (NYSE: WMG), privately held EMI Group, and Sony BMG, a joint venture of Sony Corp. (NYSE: SNE) and Germany-based Bertelsmann Media Group; Vivendi (OTC: VIVEF)’s Universal Music Group will sit out the promotion, though that label will still offer music in the MP3 store. Sony BMG joins the MP3 market with its involvement in the promotion after announcing the sale of MP3 cards earlier this week.

This promotion illustrates the continued demand for high-quality MP3 tracks free from anti-piracy technology, like Digital Rights Management (DRM), which many expect will disappear by mid-year. The full launch of the Amazon.com MP3 store gives consumers another destination for media that is playable across numerous players, acting in direct competition to Apple (NASDAQ: AAPL)’s iTunes Store. Apple spearheaded the move away from DRM last spring, after securing a deal with EMI to drop the technology. The benefit of the promotion is that it will broaden the number of consumers that are aware of high-quality tracks, while increasing the competition that will occur to spur continued development in this area.

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Filed under: Consumer experience, Competitive strategy, Google (GOOG)

Another day, more worries about Google (NASDAQ: GOOG)’s growing global power. The internet advertising juggernaut has so much influence over the spread of information (and the advertising dollars that come along with that) that it’s hard to see just how powerful the company has become in just the last three years alone.

So here we are in 2008, and — again — government regulators are growing more concerned about the power Google has. In a capitalist society, where does the free market end and the power of government begin? That’s a formula nobody can answer. When the U.S. government made its case against Microsoft (NASDAQ: MSFT) a decade ago, it included pieces of how the company trampled on its competitors using illegal tactics. I’ve never agreed with the Internet Explorer part of that litigation and never will — since, after all, consumers are free to download any free web browser they please. Is the growing government concern over Google’s growth in the same venue? It shouldn’t be.

Is anyone forcing you to use Google every single day? Nope — it’s your choice. Google ascended to the top spot in internet search without distributing a single piece of software to its customers or using any kind of illegal tactics at all. It simply provided the best and most complete experience. Customers recognized that and have made Google the top choice in internet search (and advertising along with it).

Does that require regulation? How absurd. It’s true that Google could provide privacy details (and much more) to each customer at regular intervals — but if it screws up, users will leave Google. But, when a company that does so much right for its consumers grows large because of that fact, competitors turn to any tactic they can to try and stem the flood. Making a better product, in the free enterprise tradition, would seem a better tactic.

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Filed under: Consumer experience, Competitive strategy, Google (GOOG)

Another day, more worries about Google (NASDAQ: GOOG)’s growing global power. The internet advertising juggernaut has so much influence over the spread of information (and the advertising dollars that come along with that) that it’s hard to see just how powerful the company has become in just the last three years alone.

So here we are in 2008, and — again — government regulators are growing more concerned about the power Google has. In a capitalist society, where does the free market end and the power of government begin? That’s a formula nobody can answer. When the U.S. government made its case against Microsoft (NASDAQ: MSFT) a decade ago, it included pieces of how the company trampled on its competitors using illegal tactics. I’ve never agreed with the Internet Explorer part of that litigation and never will — since, after all, consumers are free to download any free web browser they please. Is the growing government concern over Google’s growth in the same venue? It shouldn’t be.

Is anyone forcing you to use Google every single day? Nope — it’s your choice. Google ascended to the top spot in internet search without distributing a single piece of software to its customers or using any kind of illegal tactics at all. It simply provided the best and most complete experience. Customers recognized that and have made Google the top choice in internet search (and advertising along with it).

Does that require regulation? How absurd. It’s true that Google could provide privacy details (and much more) to each customer at regular intervals — but if it screws up, users will leave Google. But, when a company that does so much right for its consumers grows large because of that fact, competitors turn to any tactic they can to try and stem the flood. Making a better product, in the free enterprise tradition, would seem a better tactic.

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Filed under: Consumer experience, Competitive strategy, Market matters, Top Picks 2007, Valero Energy (VLO), Chasing Value, Oil, Headline news, Best Stocks for 2008

What can I say except to report the facts as they are. Valero Energy (NYSE: VLO), one of my top picks of 2007, is my worst of 2008 — so far! The refiners have taken a big hit this year as the Department of Energy has reported that gasoline inventories are up at the same time that oil prices have only come down marginally.

This is putting the squeeze on oil refiners like Valero, which are not able to increase margins on slackening demand at the pump. Last year, Valero made me look great all year long, rising 36%, and this year I stuck with it: Chasing Value: Valero Energy (VLO) is just so refined.

If the economy continues to look gloomy and the inventory trend continues, with supplies remaining more than ample, then perhaps my best pick will turn into my worst.

In the meantime, we are only 10 days into the new year, and January has been dismal. The market was up and down yesterday, finally ending higher, as fickle as I have seen it in a while, and it is up notably again today. Valero closed yesterday at $61.67, about $8 off my start point. It is up today even after the inventory report has been broadcast, so I think fickle is the word of the day, or even the week.

To find potential opportunities and verify my track record read Chasing Value or Serious Money.

DISCLOSURE: I own shares of VLO.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm.

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Filed under: Consumer experience, Competitive strategy, Market matters, Top Picks 2007, Valero Energy (VLO), Chasing Value, Oil, Headline news, Best Stocks for 2008

What can I say except to report the facts as they are. Valero Energy (NYSE: VLO), one of my top picks of 2007, is my worst of 2008 — so far! The refiners have taken a big hit this year as the Department of Energy has reported that gasoline inventories are up at the same time that oil prices have only come down marginally.

This is putting the squeeze on oil refiners like Valero, which are not able to increase margins on slackening demand at the pump. Last year, Valero made me look great all year long, rising 36%, and this year I stuck with it: Chasing Value: Valero Energy (VLO) is just so refined.

If the economy continues to look gloomy and the inventory trend continues, with supplies remaining more than ample, then perhaps my best pick will turn into my worst.

In the meantime, we are only 10 days into the new year, and January has been dismal. The market was up and down yesterday, finally ending higher, as fickle as I have seen it in a while, and it is up notably again today. Valero closed yesterday at $61.67, about $8 off my start point. It is up today even after the inventory report has been broadcast, so I think fickle is the word of the day, or even the week.

To find potential opportunities and verify my track record read Chasing Value or Serious Money.

DISCLOSURE: I own shares of VLO.

Sheldon Liber is the CEO of a small private investment company and the design and research principal for an architecture & planning firm.

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