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ANALOG vs DIGITAL - Ultra High Fidelity Magazine

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Gossip&News<br />

Feedback<br />

has been bought by smartphone maker<br />

HTC.<br />

You can see what they’re up to. A<br />

prominent competitor, Sony-Ericsson,<br />

already has its own brand of headphones,<br />

Walkman (the brand has been allowed<br />

to go to seed, but never mind). HTC<br />

is a major maker of Android phones,<br />

with a strong contingent of presumably<br />

street savvy young customers. Can being<br />

associated with a rapper be a bad thing?<br />

So, let’s see…HTC now has 51%<br />

of Beats (for $300 million), and there’s<br />

speculation that it is interested more<br />

in the brand than in the original headphones<br />

(which are more than pretty<br />

good, by the way). Beats continues its<br />

partnership with Hewlett-Packard (it<br />

designed a branded sound system for<br />

laptops), as well as Chrysler and of course<br />

Monster.<br />

We don’t know how much mileage<br />

Sony-Ericsson is getting from the Walkman<br />

association, but it has sunk to tenth<br />

position in the list of the world’s top ten<br />

phone makers according to a Gartner<br />

report. Taiwan’s HTC is seventh.<br />

But someone has been watching the<br />

success of Beats, because there’s another<br />

headphone brand, called Soul, fronted by<br />

a hip hop artist.<br />

A Beats near lookalike, the SL300,<br />

is also active and noise-cancelling, with<br />

a tangle-proof detachable cord, and is<br />

also backed by a hip hop artist, Chris<br />

“Ludacris” Bridges. Like the Beats, the<br />

80 ULTRA HIGH FIDELITY <strong>Magazine</strong><br />

Souls are available at the Apple Store,<br />

Amazon, and the usual suspects. The<br />

price, $299, is slightly lower than the list<br />

price of the Beats.<br />

So…are they as good as the Beats?<br />

Beats us!<br />

Why Is This<br />

Man Smiling?<br />

Have you followed the doings of<br />

Netflix in the US? What a circus it’s<br />

been!<br />

The company began life some years<br />

back offering DVD’s by mail, and more<br />

recently moved into film streaming. This<br />

past summer it split up the two functions,<br />

all but doubling the subscription<br />

price for most customers. When there<br />

was a massive backlash, and the exit of<br />

nearly a million customers, Netflix then<br />

spun off the DVD-by-mail service as a<br />

new company with a nearly-unspellable<br />

name, Qwikster. It then backtracked on<br />

the spinoff, but not on the doubling of<br />

costs. If the late Steve Jobs was lionized<br />

this Fall as the world’s best CEO, there<br />

were lots of people prepared to nominate<br />

Netflix’s Reed Hastings, shown here, as<br />

the world’s worst.<br />

(Oh, except for that guy, Léo Apotheker,<br />

who was 11 months into his reign<br />

at HP, the world’s number one computer<br />

maker, and announced HP would no<br />

longer make computers; but at least he<br />

got the boot. The boot…and about 25<br />

million dollars!)<br />

Hastings, by the way, claims that<br />

Netflix needs the money (don’t we all),<br />

but he also says that the Canadian Netflix<br />

operation (streaming only, $8 per<br />

month for all you can eat) is profitable.<br />

We suspect creative accounting. The<br />

Canadian film lineup remains pitiful,<br />

with a number of titles that seem to<br />

have bypassed cinemas to go straight<br />

to Netflix. Maybe we’re being difficult,<br />

but streaming movies from Canadian<br />

Netflix is like renting DVDs from the<br />

corner gas station.<br />

And need we stress once again that<br />

Netflix’s “HD” movies, like those of its<br />

competitors, are not really HD? And<br />

that they may blow enough Internet<br />

bandwidth to run you into extra charges<br />

with your service provider?<br />

Long live Blu-ray!<br />

goodbye<br />

Blockbuster<br />

It’s not as though we couldn’t see this<br />

coming. The US parent of Blockbuster<br />

filed for bankruptcy back in April, and<br />

was picked up, for reasons that totally<br />

escape us, by DISH TV. That should<br />

have doomed the Canadian branch, and<br />

ultimately it did, the following month in<br />

fact, but why?<br />

Fact is, the Canadian branch was<br />

profitable. Surprised?<br />

It’s easy to see the reason. In the US<br />

(and only in the US) such companies as<br />

Netflix, Apple, Google and Boxee have<br />

a vast choice of movies available on line.<br />

True, on-line movies are compressed,<br />

but then hamburgers are compressed<br />

too, and we don’t see McDo and Burger<br />

King closing shop. In Canada, by contrast,<br />

the on-line movie offerings are so<br />

slim they are a cruel joke. Result: the<br />

market for DVD rentals is much larger<br />

here.<br />

So why is Canada’s Blockbuster closing<br />

down, again?<br />

Blame globalization. And prepare to<br />

get angry.<br />

When the US business sank, its<br />

board of directors tried desperately to<br />

stay afloat, which meant it needed cash.

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