Posts Feed
Comments Feed

Archive for the 'Business/Finance' Category

I Have Your Cell Phone Number

cell_phone-2_scaled.jpg
Photo courtesy of Eli Hodapp

One of the reasons why I enjoy my cell phone is the fact that I’m never bothered by irritating telemarketers hawking their company’s products and/or services. My cell phone is literally my lifeline since it is the only way I can communicate with anyone far away through voice. And for this “luxury,” I end up paying close to $50 a month including an SMS package and a web browsing package. On average, I’ve discovered that I end up talking close to 600 minutes during peak times and almost the same amount on nights and weekends. Luckily, I never have to pay for a junk call. However, I’m afraid that may change quite soon.

Find Your Cell Phone Number Now!

Intelius, a company seeking an IPO, is selling your cell phone number for a whopping $14.95. In fact, for that price, you can look up just about anybody’s phone number. Since Intelius is a very sleazy nice company - insert sarcastic remark - , they don’t charge if no results are found. What makes the entire fiasco interesting is that your number is probably already in the database if you used your cell phone for ordering pizza. Here’s a short excerpt from the MSNBC article:

Ed Petersen, the company’s executive vice president, said it was surprisingly easy for Intelius to compile its directory. The company considers a consumer to have opted in to the service if he or she has ever given the number to a government agency or a business.

“Geez, [there are] tons of ways — everything from going out to a Web site and buying a ring tone for your phone to putting your phone number down at anything [like] ordering a pizza,” Petersen told NBC affiliate KING of Seattle. “There are literally dozens and dozens of ways that a user or a consumer could opt in to a database.”

Verizon is fighting

I’m glad that a company such as Verizon has taken notice of this company has proclaimed that it will defend the privacy of its customers’ numbers through litigation if need be. The article does not mention whether AT&T or Sprint will join forces with Verizon, but I imagine that neither company will let some company simply release their subscribers’ phone numbers without crying foul. The key thing to remember is that if you do business with a company, they are allowed to contact you, even if your number is on the DO-NOT-CALL list. However, if you do not do business with Intelius or its customers, then the theory is that they will not be allowed to contact you if you are on the DO-NOT-CALL list. Can anyone verify that for me?

No Comments »

Media Offenders

drm_cd.jpg

It seems that every day, peer to peer (P2P) traffic is on the rise. Almost every media company around the world has categorically illustrated P2P as the bane of the industry. However, very few companies have stepped up and proudly supported P2P technology. The question I pose to most individuals is, “could P2P technology be used for legitimate purposes?” My own answer is yes because P2P allows network traffic to move away from a central server and distributes the traffic over hundreds of network connections. This allows files to be readily available faster while easing network congestion and maybe even reducing costs. However, many companies are threatened by such a model because in its current state, it is actively destroying their commercial enterprise.

I came across an interesting article that looks at the MediaDefender - a company that tries to pro-actively thwart online piracy by flooding numerous sites with fake files - and how it fell from its pedestal through its own faults. MediaDefender and its clients simply fail to understand the basic proclivity of any consumer. This is summarized in thought by one of PirateBay.org’s founder:

consumers don’t care about how Hollywood wants to schedule its releases—movie theaters first, then pay-per-view, and so on. They want the content when and where it’s convenient and comfortable.

I’ve never thought of piracy like that, but I have to admit, he is correct. Consumers want to be able to access content on demand regardless of where and when. For instance, I want to be able to watch the newest movie in the comfort of my own home while the weather outside is freezing cold. Why should I have to drive out to a theatre that has extremely over-priced popcorn and other condiments in frigid weather? What if I could pay the $10 up front and be able to watch that movie in my living room the day it is released?

Piracy is convenient

Everyone can argue that piracy allows anyone to have access to the content for free. And I am not going to dispute that. However, another major benefactor of piracy is simply convenience. It allows me to experience the best without taking away from me too much. It’s far more convenient for me to go ahead and download a song that I heard on the radio rather than wait for it to appear on iTunes. Often, I have noticed that songs I hear on the radio are not always available on iTunes. In addition, “piracy” allows me to fully preview an album before I deem it worthwhile purchasing. The same can go for TV shows. If I want to watch a missed TV show, I can either wait a whole day before Hulu.com or some other site has it available. Or, the smart thing, is to just go on Mininova and download it within several minutes of the program ending on national television.

Companies need to champion convenience

Convenience is what the consumer craves and companies are not willing to provide any convenience. In fact, the only company that is even remotely close to understanding what the consumer wants is Apple. iTunes is a great resource for providing consumers with the content they seek. Moreover, Apple is beginning to tightly integrate several of their products (i.e. AppleTV & iTunes) to make it even easier for consumer to purchase content. If you disagree, just take a look at the onerous methods promoted by Microsoft.

Unfair pricing drives piracy

As a college student, I cannot afford many of the luxuries that try to seduce me. I cannot afford to spend $500 on Adobe software. I cannot afford to spend $300 on Microsoft Office. However, there are times when I absolutely must use certain products in order to successfully complete an assignment or project. The candid part is the fact that thousands of students across the US are in the same boat as me. So what are we to do? Companies would simply say “tough” and I say bullshit to that. I will never accept a company telling me that if I cannot pay an X amount of money I cannot get access to their software to pass a course. And the bottom line is that the damn prices are unfair. Prices should be far more reasonable for consumers in general.

Apple sells Mac OS X Leopard in version for consumers at a price of $129 for a single license or $199 for up to five licenses. Microsoft sells multiple different versions of Windows at different price-points. Windows Vista Ultimate, equivalent to Leopard in many ways, retails for almost $400 for the full version. That is a significant amount of money for any middle-class household. And these companies wonder why people steal. If they had fairer prices, people would actually pay rather than steal. Is that last statement true? Honestly….no

Piracy will never cease

No matter what type of technology is developed or coercive tactics employed by the government and/or companies, piracy will always thrive and lead the way in innovation. As long as their exists a price tag on a product, piracy will exist. The fact that every company needs to accept is that piracy will not go away. You can take steps to reduce its impact but you can never eliminate it. Once companies understand and accept that fact, they can then take the next step and focus on the consumer. Consumers want convenience and they will do whatever they can to ensure maximum convenience. Rather than spending money to eliminate piracy, more companies should invest in strategies that address consumer demands and interests to curtail the effects of piracy. Maybe one day, companies will turn around and listen to their customers. Until then, speak out so others can share your insight. What are your thoughts on piracy and its effects on the industry? What should the companies do? Why is piracy prevailing time after time? These are the questions we all need to be asking and answering.

photo courtesy of rebopper

No Comments »

My New Credit Card

american_express_clear.gif

Before you decide to blast me for applying for a new credit card, do realize that not all credit cards are evil. Actually, all credits are evil IF you don’t pay your balance in full by the statement’s due date. Since I pay the balance in full every time, credit card companies don’t make very much money off of me. Currently, I only have two credit cards, an American Express Blue for Students and a Capital One Platinum Visa. Although I am still a college student, I do have quite large credit limits. Combined, both cards grant me a limit of $14,000. Now it’s time for one card to simply disappear.

I’ve been quite unhappy with Capital One for two reasons:

  1. Unsatisfactory customer service
  2. Unrequested and potentially dangerous benefits

I usually never have to call customer service for any of my banking needs. However, when I do have a need, I expect phenomenal customer service. I’ve had my American Express for over four years and my capital one for over three years. To date, I’ve only called American Express twice, both times to notify them of me leaving the country and authorizing my card to be used to make international purchases. On the other hand, I’ve called Capital One for billing issues, international use authorization, and false charges. Each instance, I’ve had barely acceptable customer care representatives that did little to help me out.

For instance, when my flight had to make an emergency landing in Goose Bay, Canada due to my mother falling ill, guess which card did not work. If you guessed Capital One, pat yourself on the back. I called them up 14 days prior, 7 days prior, and 24 hours prior to my departure and they kept confirming that my card would work when overseas. I needed to pay a portion of the medical bills for my mom’s health immediately as well as buy food and lodging for ourselves. Thanks to Capital One, I couldn’t pay squat, even though I had a $10,000 credit limit. When I called them up, they said they would activate the card for international use and it would take 48 hours to take effect. Bastards!

Long story short, American Express took care of everything and even called American Airlines on our behalf and made sure that we were on a flight back to Chicago the next day. Moreover, American Express gave me temporary unlimited credit limit for my duration in Canada. Now that’s what I call customer service. After that incident, I vowed that I would look for another card and it would never be Capital One.

However, even after all that, I kept my Capital One because of its high credit limit. The last straw came last week when I received a booklet of 10 blank checks from Capital One. Why did they send it? Their thinking was that those checks could be used as a convenient way to buy gifts without having to carry my credit card. What the hell were they thinking? Those were blank checks that anyone could sign for any amount and I’d be liable for them. Bastards! This is also not the first time; I’ve received these blank checks over 6 times since I signed up for this card. Capital One is EVIL!

Clear from American Express

This card was introduced in 2005 and has virtually no fees. Here’s a quick snapshot of its features:

picture-1.png

My APR for this card will be 13.49% and if I default payments twice within a 12-month period, it will adjust automatically to 29.49% annually. So as long as I don’t make any late payments, I’m in good hands. Moreover, the APR is on par with Capital One, so I’m not really losing out. Here’s to a more satisfied feeling knowing that my card is American Express. Actually, all my cards are from American Express :).

No Comments »

What Was NBC Thinking?

In case you have not heard, NBC has decided to pull their programming from Apple iTunes. Why? According to Apple, NBC wants to charge consumers $4.99 for episodes and package movies and episodes together. Currently, you are able to purchase episodes for $1.99 and only a day after the episode has aired on TV.

The official press release from Apple:

CUPERTINO, California—August 31, 2007—Apple® today announced that it will not be selling NBC television shows for the upcoming television season on its online iTunes® Store (www.itunes.com). The move follows NBC’s decision to not renew its agreement with iTunes after Apple declined to pay more than double the wholesale price for each NBC TV episode, which would have resulted in the retail price to consumers increasing to $4.99 per episode from the current $1.99. ABC, CBS, FOX and The CW, along with more than 50 cable networks, are signed up to sell TV shows from their upcoming season on iTunes at $1.99 per episode.

“We are disappointed to see NBC leave iTunes because we would not agree to their dramatic price increase,” said Eddy Cue, Apple’s vice president of iTunes. “We hope they will change their minds and offer their TV shows to the tens of millions of iTunes customers.”

Apple’s agreement with NBC ends in December. Since NBC would withdraw their shows in the middle of the television season, Apple has decided to not offer NBC TV shows for the upcoming television season beginning in September. NBC supplied iTunes with three of its 10 best selling TV shows last season, accounting for 30 percent of iTunes TV show sales.

Apple ignited the personal computer revolution in the 1970s with the Apple II and reinvented the personal computer in the 1980s with the Macintosh. Today, Apple continues to lead the industry in innovation with its award-winning computers, OS X operating system and iLife and professional applications. Apple is also spearheading the digital media revolution with its iPod portable music and video players and iTunes online store, and has entered the mobile phone market this year with its revolutionary iPhone.

I think NBC, like other media corporations, is becoming greedier by trying to milk more money from the consumer. What NBC needs to realize is that consumers can easily download illegal versions of NBC programming just hours after they air for little to no cost. Jeremy Horwitz, editor-in-chief of iLounge, has written an excellent and detailed open-letter to NBC outlining why he thinks NBC is making a huge mistake. After reading his lengthy letter, I have to agree with him and also add that NBC has more to lose than Apple. People may think that Apple has quite a bit to lose, but Apple literally owns the market for both portable media devices and electronic media. I just wish that companies were driven more by consumer rights and consumer freedom, rather than penny-pinching profits.

No Comments »

Comcast is Dumbcast

So I sat down with my dad to review our telecommunications bill. Currently, my family uses Comcast for cable television, high-speed internet, and home phone service. So let’s break down the costs of this venture:

  • $68 for cable television
  • $43 for high speed internet
  • $50 for phone service
  • Grand Total: $161 + tax per month

In my opinion, that is a ridiculous amount to pay. So my father and I started hunting for better deals through the piles of junk mail that we have. After searching for a few minutes, we came up with this new idea:

  • $40 for unlimited local and long distance within the US through AT&T
  • $25 for high speed internet
  • $60 for satellite television
  • Grand Total: $125 + tax per month

Roughly speaking, we can expect to save about $35 before taxes. Assuming the taxes are similar, we’ll still come out on top and the best part is that a switch requires no commitment of any kind. The problem I have with Comcast is the fact that they do not offer the best price to me at any time. Unless I threaten to cancel, they force me to pay higher fees. With the prospective switch, I’m guaranteed those rates as long as I remain a customer and do not change plans.

If you are familiar with Comcast, you may recall the $33 per month rate for different services. This means, you can get high speed internet, digital cable, and digital phone service for $99 per month or $33 per month per service. The catch is that you must have all three services for that rate, otherwise you are out of luck. In addition, their phone service is VOIP, which limits your ability to use the 911 service. Although Comcast does say that it is not an issue, I can’t help but look at the fact that if my cable modem dies, I have no phone. Additionally, if my power goes out, I have no land line. So what about my cell phone? True, I can use my cell phone, but I still want a land line that I can rely on telemarketers to call. Besides, cell phones aren’t cheap once you go over your minutes.

I encourage all of you to review your bills and shop around to see whether or not you can reduce your bill. I know that if I threaten to cancel my services with Comcast, they will offer me reduced rates for a certain period of time. However, that will put me right back to where I am right now after that time has elapsed. Now if they were to offer me those rates permanently, I may reconsider, but I don’t think that is going to happen. You’d be surprised to know how many people blindly pay their bills without even taking a quick ten minutes to learn whether they are receiving a bargain or getting shafted.

No Comments »

Next »