Time Warner and the other cable companies are trying to find a way to deal with the rise in bandwidth demand.

Their genius solution?  Let’s meter out how much Internet each person can have, and charge them extra when they go over.  For instance, if your plan is 50GB per month, and you hit 53GBs, you’ll have to pay overage costs on those 3GBs.

Wonderful.  Now my Internet service is becoming more like my cell phone plan.  Except, with cell phones, the industry trend lately has been the opposite:  they used to charge you for going over your monthly minutes, but more and more plans are becoming “unlimited minutes” plans.

Time Warner is testing this metered access approach in Texas as we speak.  Comcast is rumored to be looking into it as well.

How is this any different from the airlines saying, “You remember how we used to let you check 2 bags with every ticket purchased?  Yeah, we’re going to stop doing that.  Now you have to pay for every bag you check.”???

This is not going to sit well with Internet power users like myself, who are online for several hours a day.  In fact, there may well be some sort of revolt.

Metering out the Internet access is a giant step backwards, not forward.  Remember dial up?  Yeah, in the early days of the web, you had so many hours per month of dial up access.  Then the cable companies got wacky with the broadband and trained all their customers to expect unfettered access.

And now they want to take it away.

It’s like taking candy from a baby, after training the baby to think candy was a regular feature of baby life.

From the article:

Those who mainly do Web surfing or e-mail have little reason to pay attention to the traffic caps: a gigabyte is about 3,000 Web pages, or 15,000 e-mails without attachments. But those who download movies or TV shows will want to pay attention. A standard-definition movie can take up 1.5 gigabytes, and a high-definition movie can be 6 to 8 gigabytes.

And there’s the rub.  Movie and television downloads (legal or otherwise) have caught fire and are clearly the direction that industry is headed.  Very soon there will be more people downloading digital copies of movies than those buying DVDs in the store.  So it’s hard not to see this new metered Internet approach as anything but a way to make more money.

Maybe it would be easier to take if there wasn’t such a clear problem with monopolies in the cable/broadband world.  If I had any other cable company to choose from besides Comcast, for instance, I could at least go see if they’d offer me a better deal.  If I want broadband cable Internet, though, I have only one choice… and soon they’re going to be telling me how much Internet I can use.

In the world of Technology and the Internet, mergers and acquisitions are fairly commonplace. You won’t hear about most of them, because the lion’s share are concerning companies and services you probably haven’t heard of.

Every once in a while, though, there’s a “Google Buys YouTube” or a “Microsoft Makes Bid for Yahoo” story that sort of grabs everyone’s attention.

Today there were three major acquisitions in the world of tech.

• First, CBS is buying C|Net for $1.8 Billion.
• Second, Comcast has purchased Plaxo for a rumored $150-$170 Million.
• Lastly, Ask.com (formerly Ask Jeeves) has bought Dictionary.com (actually, they purchased Dictionary.com’s parent company, Lexico, which means they also bought Reference.com and Thesaurus.com) for a rumored price of around $100 Million.

Now, I’m sure you’ve heard of Dictionary.com, as most moderate Internet users have. So that’s kind of an interesting purchase.

The Comcast deal is surprising, considering that no one in my office could even tell me what Plaxo is or what they do. Plaxo is a “social contact list” service that promises to help you “stay in touch with the people you care about most.” It’s kind of a mash-up of your address books and all your favorite websites.

The CBS/C|Net deal is the most astounding to me, purely from a dollar amount standpoint. $1.8 Billion is a heck of a lot of money for a site that offers tech news and reviews. Granted, C|Net has a stellar reputation, and is one of the most cited sources for Tech news on the web.

That being said… how many of you reading this recognized the name C|Net? It’s kind of amazing that a website you’ve never heard of is worth as much as a small country, isn’t it? Now I know that the bulk of our readers, while Internet-savvy, are not as plugged in to the latest services and hot companies online–hey, you’re busy running your small business. We get that. That’s why we’re here to keep you abreast of what’s going on.

But even if their business name doesn’t ring a bell, some of their subsidiary companies probably will:

CNet is an early pioneer in the Internet, and now includes a large stable of businesses in the entertainment, news and music areas such as ZDNet, GameSpot.com, TV.com, mp3.com.

The world wide web is a crazy place, where dollars are thrown around like candy. I’m sure next week we’ll read that Ask, CBS, and Comcast have all merged and that they’ve been bought by Google for $4.6 Quadrillion.

I’m currently trying to pinpoint exactly which website I want to buy today. Hey, why should the big guys have all the fun? I don’t have $1.8 Billion, but I have enough to buy someone’s dormant blog. Maybe I’ll do that. Or maybe we could pool our money, you and I, and buy a MySpace account or something. How much you got? I just want to get in on the action… because today is definitely THE day to buy a web property.

New reports today suggest that, having walked away from their proposed purchase of Yahoo, Microsoft has turned its affections toward Facebook.

But wait–there are also reports that they’re trying to buy AOL.

Or not. Some reports are suggesting they’re still after Yahoo.

Man, does Bill Gates have some money burning a hole in his pocket or what?

Am I the only one starting to see Microsoft as the high school senior who just got $1000 in graduation money and can’t decide on what unnecessary & useless thing he wants to buy first? I mean, Yahoo, AOL, and Facebook are three very different companies… with three very different customer bases.

But they’re also very large companies.

Maybe Microsoft just wants to make a big splash. Maybe they’re more like the school bully who reigned for years until a new bully (Google) moved to town and starting stealing his press. So the first bully starts beating people up with vigor, left and right, just to make sure no one forgets that he was there first.

I’m not sure why anyone would be interested in buying AOL–I don’t even know what they do anymore.

I half expect to see headlines this afternoon like “Microsoft Submits Bid to Purchase NFL” or “Microsoft in Talks to Buy China.”  Personally, I’d rather see Microsoft take the billions of dollars they’re dying to throw away on some huge merger and instead spend it on, oh, maybe making Vista run faster.

But that’s just me.

The current iTunes business model is that you pay $0.99 per song.  It’s been that way for quite some time, in fact. 

But according to news reports, Apple is negotiating with record labels for a new model that would be music to the ears of iTunes fans:  free music access. 

That’s right.  Free.  Apple is trying to get the labels to consent to an iTunes where users gain access to any and all music they desire.  The catch–there’s always a catch, isn’t there?–is that Apple would then charge more for their digital music devices, and pass that extra revenue on to the record companies as payment. 

So your new iPod might cost $500 or $600, but then you’d have free music access to download all the free songs your device can hold.  Well, there’s also a rumor that Apple may include a sort of “membership” or “download subscription” fee–and I can’t tell if that’s in conjunction with the added cost to the mp3 player or as an alternative pricing model.  Either way… free music is probably on its way to iTunes soon. 

Pretty sweet, eh?  Just look at the guy in that picture; that dude is loving this news. 

Theoretically, you’d never have to pay for music again… only for mp3 players.  Granted, those mp3 players might end up costing as much as a gently used motorcycle, but hey… unlimited free music downloads, right? 

Unfortunately, if you own a Zune, you’re out of luck.  Sounds like the only folks who will be able to take advantage of this new model will be people who own or buy Apple products like the iPhone and the iPod.  Of course, if you own a Zune, you’re probably already used to being in the minority. 

The change in revenue model will be huge news if it goes through, and will further cement iTunes’ status as the top destination for digital music downloads.  Check back frequently for updates as news of this development becomes more readily available. 

Remember all those HD DVDs you spent the last 8 months buying, because everyone said that HD DVD would win the format war with Blu Ray?  Yeah, they’re basically worthless now. 

Okay, maybe not worthless.  But definitely worth less.  Cue the violins.

Blue Ray is now the king.  BlueRay has killed HD DVD dead.  First degree murder.  Blue Ray is the big winner, as Toshiba has announced they will cease production on the HD DVD players.  Toshiba was the major backer of the HD DVD format, with Sony backing Blu Ray.  Over the last couple months, more and more battles went Blu Ray’s way.  Movie studios like Warner Brothers announced they would only produce their films on Blu Ray and retailers like Wal-Mart decided to only carry the Blu Ray format. 

Most consumers had held off buying either, choosing to wait for the dust to settle and a real winner to be declared in the format war before jumping on board the high definition DVD bandwagon.

Now the choice is simple. 

Expect the $5 bin at Wal-Mart to soon be filled with any remaining HD DVD titles they have yet to burn off.  Blu Ray disks, though, will likely continue to be expensive for now. 

From the article:

“We concluded that a swift decision would be best,” Toshiba President Atsutoshi Nishida told reporters at his company’s Tokyo offices. “If we had continued, that would have created problems for consumers, and we simply had no chance to win.”

I can’t claim any insider knowledge on this one.  I haven’t waded out into the high definition DVD waters just yet.  Hey, I’m old enough to remember how Betamax owners felt when VHS won out.  And I definitely had a few friends get burned in the whole Laser Disc fiasco.  So I will forever be a cautious and patient embracer of technology. 

That being said, I’m pretty pumped about this news.  Not that Blue Ray won, but simply that one of the two formats won.  Now, with a clear victor, we the consumers can breathe a bit easier.  Prices will slowly begin to fall for Blu Ray stuff, and the format itself will probably get even better.  And you know Sony has to feel good right now–they were behind the infamously failed Betamax format back in the 1980s. 

Of course, this win by BlueRay will have an impact in the video game console battle as well.  Sony put the BlueRay player in their Playstation 3, while Microsoft went with the HD DVD player in the XBox 360.  Oh well.  Something tells me that Microsoft has enough going for them that they’ll weather the storm.

Of course, in just a short time, most everything is going to go digital.  And we won’t buy our movies in any physical format whatsoever.  We’ll buy them in the form of downloads.  It’s already happening, actually.  While Blu Ray may have scored a victory today, it will sadly be a temporary one.  Soon enough, all formats will lose out to the digital download.  And frankly, I’m alright with that. 

Anyway, go buy your Blu Ray players, people.  It’s safe now. 

AOLHoo?  YahooOL?  Let the next round of name-guessing begin. 

Seems as though Yahoo has told Microsoft to go take a hike.  Well, that’s not a terribly surprising move, but that doesn’t mean it’s a smart one. 

Rumors are now swirling that they’re back talking merger with AOL.  Yeah, right.  Because AOL is sooooo much better an option than Microsoft (show of hands:  is anyone else frankly surprised that AOL even still exists?). 

I think Yahoo telling Microsoft to get lost is really just a corporate version of the old salary-negotiation thing.  They’re trying to get Microsoft to up their bid, plain and simple.  I don’t think there’s really any benefit for Yahoo in merging with AOL…in fact, the only benefit appears to be that AOL isn’t Microsoft. 

I don’t think for a second that Yahoo is really going to merge with AOL.  This is just a bargaining tactic.  I think the AOL-merger is just as likely as a Yahoo/PizzaHut merger.  Mmmm.  Pizza. 

So now the world waits to see how Microsoft responds.  I’ve read about how Microsoft’s stock has dropped a bit since their offer went out to Yahoo–lowering Microsoft’s value an amount almost identical to what they offered Yahoo.  Ouch.  So… will they increase their offer even more?  Or will they hold the line?  Whatever they choose to do in response, it’s pretty clear that this is all going to get more interesting from here.  Seems obvious, too, that Yahoo as we know it–as a standalone company–is nearing its end. 

We’ll do our best to stay up on the news and keep you updated.  I think Microsoft is still going to be buying Yahoo, when all is said and done.  Exactly how and when and why and how much is what we’re waiting to see, but any other outcome would surprise me.  And yes, before you ask… I’m totally an expert in the area of $44 Billion mergers. 

Yahoo doesn’t really want to be owned by Microsoft.  And who can blame them?  I know I don’t want to be owned by Microsoft.  A Microsoft takeover of Yahoo will almost certainly mean a loss of a lot of jobs, as divisions get merged and rolled together.  And Yahoo has always seen Microsoft as competition, so there’s some underlying dislike there already. 

Yahoo’s CEO sent a memo out to his troops, detailing the current status.  He says:

“Our board is thoughtfully evaluating a wide range of potential strategic alternatives in what is a complex and evolving landscape.”

Translation:  “We’re desperately trying to find some non-Microsoft company to buy us out instead, but time is running out.” Rumors swirl that Yahoo put out feelers to the likes of Google, NewsCorp, AOL, and even Comcast… to gauge possible interest in one of those behemoths taking them over instead of Microsoft.  It’s like in school, when I was a big nerd, and allowing myself to be bullied by one guy meant that all the other bullies would leave me alone.  The lesser of two evils, if you will. 

Yahoo just doesn’t have many options.  They’re already cutting jobs and losing profits.  I’m no economics professor (at least, not anymore I’m not), but Microsoft timed their offer rather perfectly.  From the article:

If Yahoo rejects Microsoft, most analysts believe the company will have to line up another acquisition offer or make radical changes to satisfy disillusioned shareholders.  But most analysts doubt any other potential suitor will have the financial muscle — or desire — to try to outbid Microsoft, which has $21 billion in cash and a market value of nearly $265 billion.

If Yahoo spurns Microsoft’s advances, and doesn’t find another company to buy them, they will now likely face a lot of angry stockholders who might wonder why.  As this article states:

If it spurns Microsoft’s offer, Yahoo’s board of directors will be under pressure to give stockholders a soothing cash payout or even borrow money to buy back shares and turn the firm private.

So, Yahoo is backed into a corner.  They have to do something.  And so far, none of the other bullies have stepped up to plop down the billions.  One thought I read a lot about is that Yahoo–whose search used to be powered by Google as recently as 2004–might turn over it’s search operations to Google again, cutting enough costs in the process to allow them to stay independent.  But Yahoo worked hard enough for years to develop their own search division–to compete with Google–that just reverting to the past would seem like a giant step back. 

Google, you may know, is vehemently against this merger.  Cue the chorus of “Duh” from the peanut gallery.  A Microsoft/Yahoo merger means a huge new competitor for Google’s dominance in search, and Google knows it.  MicroHoo (or YahooSoft) would also be a company bolstered in the area of online advertising–another market Google has a bit of dominance in.  I’m not sure Google’s argument that this merger hinders an open, competitive web holds any water (especially when compared with the numerous acquisitions and mergers Google themselves are guilty of. 

We’ll keep you posted.  Just know that one way or another, Yahoo as we know it is going to change.  My money’s on the merger going through.  And while Yahoo and Google may not prefer that, I do think the end result to us users is a good one.  A significant competitor in search can only mean better search service for all us computer users out here in the real world. 

Microsoft has a crush.  On Yahoo.  And their in the courting phase, so Microsoft is sending flowers and candies and standing outside Yahoo’s window holding a boom-box that plays Peter Gabriel’s “In Your Eyes.” 

In case you’re not following me:  Microsoft has made a takeover offer to purchase Yahoo for $44.6 Billion. 

Wowzers.  That’s a lot of cash.  More than I’ve got lying around.  This dwarfs Google’s purchase of YouTube for $1.6 Billion.  (Also, how weird is it to read a story about a possible Yahoo takeover on a Yahoo News page?)  Will the new company be called MicroHoo or YahooSoft?  You make the call.  But the thought of a possible Microsoft Yahoo merger sort of blows my mind.

Who knows if Yahoo is going to take the offer.  They did just have to lay off about 1,000 employees, so I’m sure they’ll consider it.  This article has a copy of the letter Microsoft sent to Yahoo’s board of directors.  Here’s an excerpt:

“We believe this proposal represents a unique opportunity to create significant value for Yahoo!’s shareholders and employees, and the combined company will be better positioned to provide an enhanced value proposition to users and advertisers. We hope that you and your Board share our enthusiasm, and we look forward to a prompt and favorable reply.”

Well that sounds like one of the sweetest, most romantic suggestions I’ve ever heard.   

And think about the kind of super competitor to Google that would be created by a Microsoft/Yahoo merger–I’m talking in terms of search here.  Their collective marketshare, customer base, and expertise would combine to form the first serious challenge to Google’s dominance in years.  It would allow them to innovate instead of just always following Google’s lead.  So for that reason, I’m all for it.  Competition is good for the marketplace; it makes companies work harder and perform better. 

Stay tuned for more information on this possible purchase.  Like papparazzi on the Hollywood streets we’ll be following this potential coupling of two of the big three web/search giants.  Microsoft has gotten down on bended knee and is now nervously awaiting the blushing Yahoo’s answer.  Will it be “Yes” or “No?”  Are Microsoft and Yahoo getting married?  Oh–and will it be MicroHoo or YahooSoft?  Because that’s almost as important as whether or not the merger goes through.  Almost. 

If Microsoft has their way, we’ll all be a LOT more transparent than we are now.  This article talks about a patent recently filed by Microsoft for a biometric monitoring system. 

Using heart rate, brain scans, facial expressions, body movement, temperature, and other factors, the system would allow bosses to keep an eye on employee productivity and physical well-being.  Just like the Universal Soldiers in that movie…Universal Soldier.  Where the government jerks could see all the vitals of the soldiers (who were basically robots due to their conditioning and super strength and such).  Presumably, your boss won’t take this new system and send you on covert military missions.  But they might be interested in using it to see how much concentration or focus you have, or how much work you’re getting done. 

Getting stressed out during a project?  Yeah, the system would know it, and would alert your boss, and probably even offer some suggestions to you on how you might calm down.  Creepy. 

From the article:

The Information Commissioner, civil liberties groups and privacy lawyers strongly criticised the potential of the system for “taking the idea of monitoring people at work to a new level”. Hugh Tomlinson, QC, an expert on data protection law at Matrix Chambers, told The Times: “This system involves intrusion into every single aspect of the lives of the employees. It raises very serious privacy issues.”

Well, that’s a bit of an understatement.  Look, is it really my boss’s business if I have high blood pressure?  Or if I have indigestion?  I don’t think so.  There are only a handful of professions where this level of scrutiny is warranted (such as pilots or astronauts), but the article indicates that Microsoft intends this product for use in the mainstream work place. 

Yikes.  I’ve certainly worked for some penny-pinching corporations that would love to have this kind of fail-safe in place to ensure employee productivity–but I have a hard time believing that this system wouldn’t be challenged by unions as well as individuals.  I’m all for increasing how much work we get done, but not necessarily at the cost of privacy.  I want my boss to pay for my doctor visits (through insurance)…not to have access to my medical file! This patent filing from Microsoft kind of freaks me out a bit.  I don’t want to be anyone’s Universal Soldier.

So if you’re a Mac fan, today is like Christmas.  Or New Years Eve.  Or some other gift-giving, partying holiday. 

Why?  Because it’s MacWorld day.  What is MacWorld?  I’ll let their website tell you in their own words:

Macworld is the premier source for news, reviews, help and how-to, videos, and podcasts for the Apple market, including the Mac, Mac software, Mac OS X, the iPod and iTunes, and the iPhone. Along with reviews of Mac-compatible hardware such as printers, digital cameras, and displays, Macworld reviews iPod cases, headphones, speakers, and accessories, and iPhone-related products.

So that’s basically a fancy way to say “it’s an annual conference where we historically have announced new products that make all the fanboys go crazy.”  And today’s new product is rumored to be the Mac Book Air, or as some are calling it, the Mac AirBook.

What is the Mac Book Air?  Well, it’s a super-thin notebook computer.  As you can see in the picture, it would be, well, super thin.  So thin and lightweight that you might say it was “lighter than air.” 

That’s the rumor anyway.  The photo we’re showing you is something Wired put on their blog, and purports to be a mock-up of the Mac AirBook.  But there is lots and lots and lots of coverage on the various details of this Mac Book Air rumor.

Now, I’m not really an Apple guy.  I’ve got nothing against them, I just haven’t really ended up as one of the Apple disciples.  But nearly everything they put out looks amazing, and the Mac Airbook is no exception.  I want one, even though it’s just a rumor and might not exist, and I’m pretty sure it’s going to cost darn near $3000. 

Anyway, we’ll keep our eye on the upcoming keynote presentation and come back to update this post with all the juicy info we learn about the Mac-Book AirBook super-thin whatever it is…. so check back. 

UPDATE:  Okay, so it’s real.  The MacBook Air will be available in two weeks.  It’s $1799, and weighs 3 pounds!  It also has no CD drive–hey, that would make the thing too thick to be called Air.  All the Mac fiends I know are going gaga about it.  Gizmodo has a nice hands-on write up, with pictures.  I’m sure we’ll have plenty of news related to this product in the coming days, especially after customers start buying them and reporting in.  We’ll try our best to keep you posted.