Filter looks at the day's top technology news through snapshots and analysis of what the world's media outlets are covering. Washingtonpost.com's new Mon.-Fri. feature is penned by technology reporter Cynthia L. Webb. If a technology story breaks, a company falters or triumphs, or there's a new trend in technology, Filter wants you to know about it.
The Associated Press said downloads from the "United States, France, United Kingdom and Germany were used to calculate total sales, but the company excluded downloads given away as part of iTunes promotions, Apple spokeswoman Liz Einbinder said."
"The site is so far available to computer users in the US, the UK, France and Germany," BBC News said. "The success of the store, one of the first to offer legal downloads, has come amidst a global crackdown on illegal song-swapping over the internet. The downloaded songs can be played on up to five computers after they have been paid for, and can also be played on an unlimited number of iPod portable music players. The iTunes Music Store reported 800,000 songs downloaded in its first week of operations in Europe."
• Associated Press via Yahoo! News: Apple's iTunes Sells 100 Millionth Song • BBC News: iTunes Tops 100m Downloads Mark
Speaking of Europe, Apple is close to striking a deal with independent labels to get their songs on iTunes European service, Reuters reported. "iTunes Europe customers may finally be able to download tracks from The White Stripes and Franz Ferdinand as their music labels inch toward a deal this week with Apple Computer Inc., a source said on Tuesday," the wire service said. "The imminent signing would end the on-again-off-again negotiations that have kept hundreds of artists signed to a collection of independent labels off the European version of iTunes." When the service launched across the pond, Apple "decided to negotiate individually with the top independent labels rather than follow in the footsteps of rivals such as Sony Connect and Napster who inked a single deal with the Association of Independent Music, a UK trade body representing a vast assortment of indie labels. The impasse irked fans who staged a virtual protest on the iTunes store."
• Reuters: Apple, Indie Labels 'Close' to iTunes Pact – Source
A Bond-Worthy iPod?
British authorities say the iPod might pose a security risk. Reuters reported that "Britain's Ministry of Defense has become the latest organization to add the iPod to its list of high-tech security risks. The pocket-sized digital music player, which can store thousands of songs, is one of a series of banned gadgets that the military will no longer allow into most sections of its headquarters in the UK and abroad," the wire service said. "Devices with large storage capabilities – most notably those with a Universal Serial Bus (USB) plug used to connect to a computer – have been treated with greater suspicion of late by government agencies and corporations alike. The fear is that the gadgets can be used to siphon information from a computer, turning a seemingly innocuous device into a handy tool for data thieves."
• Reuters via Yahoo News: British Military: iPods Pose Security Risk
Candied Apple
Apple's stock has been more sweet than sour these days. "The more than 50 percent rise in Apple Computer Inc.'s stock price this year has mirrored the brisk sales of its market-leading iPod digital music player and growth at its retail stores," Reuters reported over the weekend. "In the view of some analysts, the share price's ascent also reflects a transformation in the way investors are willing to value the Cupertino, California-based company, innovator of the first operating system to make personal computers friendly to everyday users. Once seen as a value play that traded at little above its cash value, Apple's stock is now attracting long-term and momentum investors sold on Chief Executive Steve Jobs' vision of the company as a high-margin style-setter at the hub of an emerging 'digital lifestyle.'"
• Reuters: Apple Reinvention Transforms Stock Value
People will be taking note of the company's stock tomorrow, when Apple reports its fiscal year 2004 third quarter results. CBS MarketWatch gave a preview yesterday: "Analysts surveyed by Thomson First Call expect Apple to earn 15 cents a share on $1.94 billion in revenue when it delivers its fiscal third-quarter results. Investors and analysts likely will be most interested in any insight Apple offers into its fourth-quarter outlook. Apple previously announced it would delay shipment of the newest version of its iMac personal computer until September and would not take any more orders for its current line of iMacs. Such a move could hinder Apple's momentum during the back-to-school shopping season that falls in its fourth quarter."
• CBS MarketWatch: Apple Expected To School Analysts
Nasdaq's Google Coup
Take that, New York Stock Exchange. Google said it will list its $2.7 billion public stock offering on the Nasdaq Stock Market. The NYSE "campaigned hard to win the coveted listing. Both organizations had a lot at stake in the Google listing, which the Mountain View, Calif.-based company disclosed in a filing with the Securities and Exchange Commission," The Washington Post reported. "The NYSE and Nasdaq fiercely compete for stock listings, which generate significant revenue as well as prestige. The NYSE earned 27 percent of its $1 billion in revenue last year from listing fees; Nasdaq earned close to 28 percent of its $590 million in revenue from such fees."
But one executive close to the NYSE told the Post: "I don't think that it was a real fight. I don't know how easy it is to have a dialogue with [Google]. They don't talk to anyone. They don't even really talk to their bankers." Mark Lehmann, director of San Francisco investment bank JMP Securities, told the San Francisco Chronicle: "It would have been a bigger story if [Nasdaq] hadn't gotten Google."
• The Washington Post: Nasdaq Snares Google IPO (Registration required)
• San Francisco Chronicle: Google To Trade Stock On Nasdaq
"In choosing Nasdaq, Google selected the market that is already home to a slew of technology heavyweights, including Microsoft Corp., Yahoo Inc. and Intel Corp., so picking Nasdaq as the home market isn't a radical notion. Still, it is a coup for Nasdaq, particularly since the $2.7 billion IPO is one of the year's most eagerly anticipated offerings," The Wall Street Journal wrote.
• The Wall Street Journal: Google Plans to List on Nasdaq, Joining Ranks of Tech Notables (Subscription required)
