Which Tablet to Buy Among Dozens Confuses Shoppers

Holiday shoppers with a tablet computer on their gift list this year might be forgiven for feeling a little panicked.

Look at the tablets available online or at a consumer electronics store and it can be dizzying to choose from among the dozens of slim rectangles with touch screens — each with various sizes, features, prices and applications.

Tablets were supposed to be a simple alternative to the bloated personal computer market. And when “tablet” was synonymous with “iPad,” that was true.

But this is the first holiday season in which the iPad faces competitors that have built up a solid footing in the market. Amazon and Google introduced tablets just in time for the shopping rush. As a result, many consumers and analysts say, the new market of keyboardless computers is quickly becoming as confusing as that of the old-school PC.

“What’s different about this holiday season is that consumers have not just more choice, but really good choices,” said Sarah Rotman Epps, who studies consumer computing trends at Forrester. “There have been many iPad wannabes but no real quality alternatives, and now there are several.”

While choice is a good thing for consumers, she said, it also makes shopping “confusing and complicated.”

For the companies that make tablets, the choice means everything. The stakes are much higher than the sale of individual devices. Each company is trying to snag lifelong customers for their other products — like music, apps, e-books, movies, Web search or word-processing software.

While Apple has dominated the market until now, selling more tablets than any other company, its perch is being threatened by the newcomers.

“Apple left a lot of room for rivals to grow,” said Tero Kuittinen, an independent mobile analyst.

By keeping its tablet prices so high, he said, Apple could lose its place as the biggest tablet seller, just as it did with smartphones when it lost the first-place position to Samsung, which makes less expensive phones using Google’s Android software. The iPad still dominates the market with a 50 percent share, according to third-quarter figures from the research firm IDC, but that is down from 60 percent a year ago. Samsung is in second place with an 18 percent share, Amazon is third with 9 percent, and Asus, which makes Google’s Nexus 7 tablet, is in fourth with 8.6 percent of the market.

But Google, which makes the vast majority of its revenue on Web ads, still lags in the tablet market, even though sales of its Nexus 7 tablet are approaching one million a month, according to Asus. About 98 percent of Web traffic from tablets comes from iPads, according to Onswipe, a digital publishing company. Google would like more of that traffic, as well as more buyers for apps and media from its Google Play store, as would Amazon and Microsoft.

“The first decision you make is what ecosystem am I in, do I want the Android Play store and content or some other?” said Hiroshi Lockheimer, Google’s vice president for engineering for Android. “So the importance of the ecosystem can’t be overstated.”

But the decisions after that are still complex.

Say, for example, that you want a tablet that runs Google’s Android operating system. There is the Nexus 7, a seven-inch tablet made by Asus, and the Nexus 10, a 10-inch tablet made by Samsung. Then there are the Samsung Galaxy Tab 2 10.1 and the Samsung Galaxy Note 10.1 (not to be confused with the Samsung Galaxy Note 2, a 5.5-inch smartphone). And that’s not to mention the dozens of Android tablets made by Lenovo, Toshiba and others.

This year, Microsoft also has a tablet, called Surface. Amazon has the Kindle Fire and Fire HD, and Barnes & Noble has the Nook HD and HD+. Once shoppers choose one, they have more choices to make, like whether they want to pay $15 more for the privilege of not seeing ads on the Kindle Fire.

Even Apple, which has always prided itself on having simple product lines, now offers the new iPad, the older iPad 2 and the iPad Mini. If you factor in the various amounts of storage and the choice of cellular data or just Wi-Fi, there are essentially 14 iPad models to choose from.

Complicating the decision on hardware, different tablets connect to different online stores for apps, music and video. If you have built your music and app collection on Apple devices, an Android tablet may mean starting from scratch, and vice versa.

The proliferation of products is nothing new for a mature market, as anyone who has stood in front of a wall of televisions at Best Buy or in a parking lot of Priuses at a Toyota dealership knows.

But some consumer electronics companies that have given their customers too many options have run into trouble, said Shaw Wu, an analyst at Sterne Agee. They include Motorola Mobility, which is trying to rescue its cellphone business by paring its lineup of 27 devices, and Research in Motion, which offers a perplexing matrix of BlackBerrys with confusing names, like the BlackBerry Torch 9810, 9850 and 9860.

Google in particular runs this risk, said Michael Gartenberg, a technology analyst at Gartner, because it gives away its Android operating system to any device manufacturer that wants to use it, resulting in an uncontrolled array of Android devices running different versions of the software. Some apps will work only with particular versions, making it difficult to know exactly what you are getting.

Google has tried to address this problem in recent months. It gave its line of Nexus products names corresponding to their screen size and began selling them in its Play store. (Google teams up with manufacturers to build the Nexus devices.) It began running ads for the tablets online, on billboards, in print and on television, which had been rare for the company, and assigned a public relations employee to focus on selling hardware to consumers.

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D.A.-elect has full plate as she confronts her next challenge

As a junior at UC Irvine in 1978, Jackie Lacey was featured in a Seventeen magazine article profiling 13 young women. The first in her family to go to college, she had recently switched her career plan from being a grade school teacher to a lawyer.

"I can do more in the legal process to help people," Lacey, then 21, told the magazine. "I've seen so many black people cheated by tradesmen or intimidated by the police because they have no knowledge of their legal rights. I'd like to help change that."

Back then, Lacey said, becoming a prosecutor was the last thing on her agenda. The attorneys the black community looked up to were defense attorneys and civil rights lawyers.

"'Prosecutor, what is that? Is that the person who puts people in jail?' — that's the view I had of the prosecutor's office," she said.

But that view changed. Earlier this month L.A. County voters elected Lacey district attorney, capping a 26-year career in the nation's largest prosecutorial office. She also broke down some barriers, something noticed by many, including hip-hop mogul Sean "Diddy" Combs.

"Congrats to Jackie Lacey who became the first woman and African American to be elected District Attorney of Los Angeles! LETS GO! POWERFUL," Combs tweeted the day after the election.

She drew other celebrity supporters, including former basketball star Magic Johnson and R&B singer Macy Gray, who performed at Lacey's election night party, confiding to the audience that she had been wooed by the candidate's promise to have her over for peach cobbler.

The new D.A.-elect is going to have little time to celebrate her victory or perhaps even bake that cobbler. She's faced with numerous challenges, ranging from prison realignment and court closures to choosing a new leadership team.

The job will also thrust her into the limelight as never before. Despite serving as outgoing Dist. Atty. Steve Cooley's second-in-command, she spent the last decade largely away from the spotlight — until she ran for office. Her opponent, prosecutor Alan Jackson, on the other hand, had gotten media attention for cases like the murder trials of music producer Phil Spector, and regularly appeared on the NBC show "Unsolved Case Squad."

Within the district attorney's office, Lacey has been known for her down-to-earth persona and collaborative leadership style.

"I would say she's probably one of the most approachable managers I've ever worked for," said Joseph Esposito, director of specialized prosecutions, who worked under Lacey when she headed the district attorney's central operations bureau. "… One thing I learned immediately is that it was absolutely OK to express my own opinion, even if it was contrary to hers."

Detractors criticized Lacey as a bureaucrat overly beholden to Cooley. In a television ad, Jackson slammed her for conflicting testimony she had given in two union grievance hearings, saying she was "a political appointee who was dishonest under oath to protect her boss." Lacey maintained that she had merely corrected her previous testimony, and called Jackson naive.

Lacey told the Times in an interview during her campaign, "I don't foam at the mouth, I don't walk around bragging. Running for office is really hard for me because I'm not used to marketing myself. But I am a determined individual. If I set my mind to something, I will work literally day and night until I am sick."

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Lacey grew up in the Crenshaw district of Los Angeles, raised by blue collar parents — her father worked for the city's lot cleaning division and her mother in a garment factory and later for the school district — who had migrated from the South. Despite beginning from "scratch," as Lacey's mother, Addie Phillips, put it, they saved enough to buy their house for $30,000 and enough to send Lacey to college.

She went on to law school at USC on a scholarship, and upon graduation, joined a small entertainment law firm.

"That sounds sexy," she said. "It was the most boring job you could imagine."

Unable to stomach the succession of monotonous depositions, she jumped to the Santa Monica city attorney's office, where a friend from law school had landed. There she found that she enjoyed criminal law. She also discovered, she said, that "many of the victims are poor people, just like the people I said I wanted to help."

After moving to the district attorney's office, she eventually prosecuted hate crimes, including the case of a black homeless man in Lancaster who was beaten to death by three Nazi Lowriders.

Lacey worked under Cooley in the San Fernando courthouse and was the first person he appointed to management after his election as district attorney in 2000. Cooley appointed her as chief deputy district attorney in March 2011, shortly before announcing his own plans to retire and backing her run to replace him.

As district attorney-elect, Lacey will immediately be confronted by the hot button issue of prison realignment, which shifted responsibility for thousands of prisoners and parolees from the state to counties.

"That's the overall biggest problem everyone has in the criminal justice system," said Laurie Levenson, a former federal prosecutor and Loyola Law School professor. "…If she can just deal with realignment, she will be a huge success."

Lacey acknowledged that realignment has not so far brought the "Armageddon" of spiking crimes rates that some predicted, but still called it a threat to public safety, citing the potential for jail overcrowding and concerns about the system's ability to monitor released prisoners.

Lacey has said she wants to move quickly to expand the county's alternative sentencing programs for veterans, female parolees and people with mental illnesses and substance abuse problems, although she is still working out the mechanics of how to do it. Offering alternative sentencing to more low-level offenders would ensure that the jails have room for more serious criminals and that courts, not sheriff's officials, would decide how long offenders will spend in jail, she said.

At the same time, Lacey supports reclassifying some nonviolent offenders, including high-level drug dealers and some identity theft perpetrators, to make them eligible for state prison time.

She has also promised to expand prosecutions of identity theft and environmental crimes — the office currently has only one investigator dedicated to that role — and has pledged to continue to support the public integrity unit, a pet project of Cooley's. That unit has prosecuted officials in Bell, Vernon and elsewhere on public corruption charges.

Lacey's first move as district attorney, however, will be to appoint people to her leadership team. So far, she has declined to say whom she is considering.

abby.sewell@latimes.com

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Israel's Rocket-Hunting Ace Got His Start Playing <em>Warcraft</em>

War has once again erupted between Hamas and the Israel Defense Forces, with the Gaza-based militant group launching hundreds of rockets and missiles at Israeli towns. But many of these projectiles never made it to their targets, thanks to the new Iron Dome missile defense system that’s arguably become this conflict’s most important technological difference-maker. This article, first published in April, tracks the story of Iron Dome’s most prolific “gunner.” While his record for shooting down missiles and rockets has by now undoubtedly fallen, the tale still gives insight into the battle now gripping Israel and Gaza.

KFAR GVIROL, Israel — While many of the boys in Idan Yahya’s high school class were buffing up and preparing themselves for selection into elite combat units, this gawky teenager was spending “a lot of time” playing Warcraft — the real-time strategy computer game where opposing players command virtual armies in a battle to dominate the fictional world of Azeroth.

Four years later, the high school jocks who sweated it out in pre-military academies so they could make the cut into the Israel Defense Force’s Special Operations units are now crawling through the sand dunes on the outskirts of the Gaza Strip and watching while Idan knocks rockets out of the sky hundreds of meters above their heads. Idan Yahya, 22, an Iron Dome “gunner” in the Active Air Defense Wing 167, currently holds the record for the number of rockets intercepted: eight.

People in the army describe him variously as a geek and an ace. But the geek who grew up playing Warcraft is now a highly prized soldier on the cutting edge of real war craft. He’s the Israeli army’s top rocket interceptor.

The Iron Dome is a mobile anti-rocket interception system that Israel moves around the country to shoot down the rockets fired at its civilian population centers by armed groups in Gaza and southern Lebanon. Its radar picks up launches and fires interceptor missiles at them if they’re calculated to be heading towards populated centers. The system has become increasingly important as Hamas, Hezbollah and other groups amass surface-to-surface missiles to hit the Israeli home front with, thus bypassing the Israel Defense Force’s overwhelming advantage of concentrated firepower and fighter aircraft. Should Israel attack Iran’s nuclear installations, the expected rocket reprisals from the armed groups on its borders will keep Iron Dome very, very busy.

As the war between Israelis and Arabs enters its sixth decade (or its 500th depending on who you ask), it is increasingly becoming a hi-tech rocket war. The IDF’s Director of Military Intelligence Maj. Gen. Aviv Kochavi in February said there were 200,000 rockets aimed at Israel from the south, north and east. And in this increasingly technological battlefield of rockets, anti-rocket interceptors, radars, control rooms, drones and drone hacking, it is soldiers like Idan Yahya (and whoever his counterparts on the Arab side are) who are making the most impact.

Computer geek, keyboard combatant, soldier, call him what you will, Idan and others like him man the controls of the latest rock star in advanced military technology. “There are a lot of flashing blips, signs, symbols, colors and pictures on the screen. You look at your tactical map; see where the threat is coming from. You have to make sure you’re locked onto the right target. There’s a lot of information and there is very little time. It definitely reminds me of Warcraft and other online strategy games,” Idan says.

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Liam Neeson in negotiations for crime thriller “The All Nighter”

LOS ANGELES (TheWrap.com) – Liam Neeson is in negotiations to star in the crime thriller “The All Nighter (AKA Run All Night)” a person familiar with the situation has told TheWrap.

The story follows an aging hit man who, in order to protect his wife and son, must take on his former boss in a single night. He then winds up on the run from the mob and the authorities with his estranged son.

The film is being produced by Vertigo Entertainment‘s Roy Lee, along with Brooklyn Weaver for Warner Bros. which declined to comment. The studio acquired Brad Ingelsby‘s spec script “The All Nighter” in January for a reported six figure sum.

Neeson’s upcoming films include “Non-Stop” and “A Walk Among The Tombstones.” He will also be featured in a voice role in the upcoming film “Lego: The Piece of Resistance.”

Lee is working on a long-list of projects including Spike Lee’s remake of the South Korean thriller, “Oldboy,” which is currently filming. He is also producing the upcoming thriller “The Double Hour”; a feature film based on the hit video game “Deus-Ex Human Revolution”; “Lego: The Piece of Resistance,” and the action thriller “Sleepless Night,” which is also set up at Warner Bros. Weaver’s credits include “Thirteen” and “Picture Book.”

Ingelsby’s upcoming projects as a writer include “The Raid.” In 2008, he made another major spec deal for his revenge thriller “The Low Dweller,” which went to Relativity Media.

Movies News Headlines – Yahoo! News

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The Neediest Cases: Emerging From a Bleak Life to Become Fabulous Phil

For years, Phillip Johnson was caught in what seemed like an endless trench of bad luck. He was fired from a job, experienced intensifying psychological problems, lost his apartment and spent time in homeless shelters. At one point, he was hospitalized after overdosing on an antipsychotic drug.

“I had a rough road,” he said.

Since his hospital stay two years ago, and despite setbacks, Mr. Johnson, 27, has been getting his life on track. At Brooklyn Community Services, where he goes for daily counseling and therapy, everybody knows him as Fabulous Phil.

“Phillip is a light, the way he evokes happiness in other people,” his former caseworker, Teresa O’Brien, said. “Phillip’s character led directly to his nickname.”

About six months ago, with Ms. O’Brien’s help, Mr. Johnson started an event: Fabulous Phil Friday Dance Party Fridays.

One recent afternoon at the agency, 30 clients and a few counselors were eating cake, drinking soft drinks and juice, and grooving for 45 minutes to Jay-Z and Drake pulsating from a boom box.

Mr. Johnson’s voice rose with excitement when he talked about the party. Clients and counselors, he said, “enjoy themselves.”

“They connect more; they communicate more,” he continued. “Everybody is celebrating and laughing.”

The leadership Mr. Johnson now displays seems to be a far cry from the excruciatingly introverted person he was.

As an only child living with his single mother in public housing in Bedford-Stuyvesant, Brooklyn, he said, he tended to isolate himself. “A lot of kids my age would say, ‘Come outside,’ but I would always stay in my room,” he said. He occupied himself by writing comic books or reading them, his favorites being Batman and Spiderman because, he said, “they were heroes who saved the day.”

After graduating from high school in 2003, he worked odd jobs until 2006, when he took a full-time position at a food court at La Guardia Airport, where he helped to clean up. The steady paycheck allowed him to leave his mother’s apartment and rent a room in Queens.

But the depression and bleak moods that had shadowed him throughout middle and high school asserted themselves.

“My thinking got confused,” he said. “Racing thoughts through my mind. Disorganized thoughts. I had a hard time focusing on one thing.”

In 2008, after two years on the job, Mr. Johnson was fired for loud and inappropriate behavior, and for being “unpredictable,” he said. The boss said he needed counseling. He moved back in with his mother, and in 2009 entered a program at an outpatient addiction treatment service, Bridge Back to Life. It was there, he said, that he received a diagnosis of schizophrenia and help with his depression and marijuana use.

But one evening in May 2010, he had a bout with insomnia.

He realized the antipsychotic medication he had been prescribed, Risperdal, made him feel tired, he said, so he took 12 of the pills, rather than his usual dosage of two pills twice a day. When 12 did not work, he took 6 more.

“The next morning when I woke up, it was hard for me to breathe,” he said.

He called an ambulance, which took to Woodhull Hospital. He was released after about a month.

Not long after, he returned to his mother’s apartment, but by February 2011, they both decided he should leave, and he relocated to a homeless shelter in East New York, where, he said, eight other people were crammed into his cubicle and there were “bedbugs, people lying in your bed, breaking into your locker to steal your stuff.”

In late spring 2011, he found a room for rent in Manhattan, but by Thanksgiving he was hospitalized again. Another stint in a shelter followed in April, when his building was sold.

Finally, in July, Mr. Johnson moved to supported housing on Staten Island, where he lives with a roommate. His monthly $900 Social Security disability check is sent to the residence, which deducts $600 for rent and gives him $175 in spending money; he has breakfast and lunch at the Brooklyn agency. To assist Mr. Johnson with unexpected expenses, a grant of $550 through The New York Times Neediest Cases Fund went to buy him a bed and pay a Medicare prescription plan fee for three months.

“I was so happy I have a bed to sleep on,” he said about the replacement for an air mattress. “When I have a long day, I have a bed to lay in, and I feel good about that.”

Mr. Johnson’s goals include getting his driver’s license — “I already have a learner’s permit,” he said, proudly — finishing his program at the agency, and then entering an apprenticeship program to become a plumber, carpenter or mechanic.

But seeing how his peers have benefited from Fabulous Phil Fridays has made him vow to remain involved with people dealing with mental illnesses or substance abuse.

He was asked at the party: Might he be like the comic-book heroes he loves? A smile spread across his face. He seemed to think so.

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Obama and Boehner upbeat after 'fiscal cliff' meeting

WASHINGTON — The outline of a compromise over impending tax hikes and spending cuts began to come into focus Friday after President Obama convened top congressional leaders at the White House.

Differences remain, especially as Republicans, led in the House by Speaker John A. Boehner of Ohio, continue to fight to keep tax rates for the wealthiest Americans from rising.

But the contours of a two-stage deal are taking shape as leaders work to avert a year-end fiscal crisis and break the gridlock that has soured voters on Washington. The mood alone, with Obama congratulating Boehner on his birthday Saturday and Republican and Democratic leaders taking turns speaking to signify their unity, signaled a sharp change from past confrontations.

"We have the cornerstones of being able to work something out," said Senate Majority Leader Harry Reid of Nevada, as leaders from both parties emerged from the White House. "This is not something we're going to wait until the last day of December to get done. We have a plan. We're going to move forward on it."

Boehner, who presented his framework for a broad tax-and-spending overhaul to be undertaken in 2013, also sounded an optimistic note.

"To show our seriousness, we've put revenue on the table, as long as it's accompanied by significant spending cuts," Boehner said. "It's going to be incumbent on my colleagues to show the American people we're serious."

The first part of such a deal would be legislation this year that would commit Congress to specific revenue increases, favored by Democrats, and spending cuts, as advocated by Republicans. How those increases and cuts would be achieved would be worked out in the second stage next year by the new Congress.

Not addressed was how to resolve the standoff over this year's expiring tax rates. Resolving the tax breaks for wealthier Americans remains, in many ways, the linchpin to a deal.

Obama and Boehner appeared more comfortable together than a year ago, when they tried — and failed — to reach a $4-trillion deficit-reduction deal that many economists have warned is vital for the nation's long-term fiscal health.

The two leading actors exchanged a light moment as the president wished the speaker, who turns 63 on Saturday, a happy birthday and gave the known Merlot fan an expensive bottle of Italian red wine.

"My hope is this is going to be the beginning of a fruitful process that we're able to come to agreement on that will reduce our deficit in a balanced way, that we will deal with some of these long-term impediments to growth, and we're also going to be focusing on making sure that middle-class families are able to get ahead," Obama said as he opened the meeting in the Roosevelt Room. "We're going to get to work."

Friday's closed-door gathering was the first such sit-down since the election, which emboldened Obama and his allies on Capitol Hill. Americans spoke at the polls, they maintain, preferring the Democratic approach, which asks the wealthiest taxpayers to contribute more revenue while preventing steep spending to domestic cuts.

To rank-and-file Republicans, though, the election results signaled that voters want the GOP House majority to hold a final "line of defense," as Boehner puts it, against what they see as government overreach.

Efforts to raise new tax revenue while cutting spending has eluded the parties in the past, but this year's built-in deadline could give them a boost.

Unless Congress acts, taxes will rise on most Americans, a $2,000 average hit as current rates expire on Dec. 31. Massive federal spending cuts scheduled to begin Jan. 2 would cut across defense and domestic accounts, pulling funds out of the economy. Together, they have been referred to as a "fiscal cliff."

A shift can be heard in the rhetoric, as Republicans now say they are willing to consider increases in tax revenue, and Obama has softened his insistence that top income tax rates, now at 35%, must rise to 39.6%, the rate from the Clinton era.

"We all understand where we are," said Sen. Mitch McConnell of Kentucky, the Republican leader. "We're prepared to put revenue on the table provided we fix the real problem, even though most of my members, I think without exception, believe that we're in the dilemma we're in not because we tax too little but because we spend too much."

During the hourlong session Friday, Boehner presented his proposal to have the parties agree to targets for new tax revenues and spending cuts, which would be bound by statute and enacted in 2013.

Tax revenue could be raised by closing tax loopholes or capping deductions for the wealthiest Americans — couples earning incomes above $250,000, or $200,000 for singles. Such a broad deal would also require Democrats to agree to rein in spending on Medicare, Medicaid and other entitlement programs as Obama has previously proposed.

Both sides agreed to begin working now on the 2013 framework. Nothing will be decided until after the Thanksgiving holiday.

Obama has repeatedly sought to pressure House Republicans to at least extend the expiring tax rates for those who do not earn above $250,000. The Senate has already passed a bill that would do so, preventing a New Year's tax hike on the middle class, while talks continue over tax rates for the wealthy.

House Republicans have refused to budge, and Boehner gave no indication Friday he would allow rates to rise.

lisa.mascaro@latimes.com

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So You Want in on the Music Biz? Fred Wilson Has 4 Things to Tell You

Not only is Union Square Ventures partner Fred Wilson the godfather of the New York startup scene, he also loves music. So who better than this self-proclaimed music nut to talk about the future of music and technology, and how companies straddling both have a shot at making money.

At the Billboard FutureSound conference in San Francisco this week, Wilson laid out four guiding principals for would-be music moguls. All you Russell Simmons wannabes, here you go.

1. It’s more expensive than you think, and it takes longer than you want.

Unlike a typical software startup that can get up and running with $500,000, music startups often need at least $5 million and up to $20 million just to get started, says Wilson. Much of that money goes towards licensing music content from the copyright holder, which is usually a record label. “The startup costs for a legal and legitimate music service are extremely high relative to any other sector,” he says. Translation: VCs have plenty of other cheap sectors to go hunting for promising startups, so funding for music startups is hard to come by.

Union Square Ventures‘ two music plays are group listening service Turntable.fm and social MP3 sharing site SoundCloud, both of which received sizable rounds from the firm. Turntable.fm has raised $7 million from Union Square and others, and SoundCloud banked $10 million in its Wilson-led second round of funding.

Unlike many web-based startups (mobile and otherwise), which latch on to massive distribution platforms offered by Facebook, Google and Apple, music streaming or discovery services can’t go global on day one because of copyright protections and country-specific licensing contracts.

Turntable.fm learned that lesson the hard way. When the service launched in 2011 it blew up thanks to its slick design and mobile-friendly approach. But the startup quickly learned that it was illegally offering music to overseas listeners. It immediately shut off service to international customers, and two-thirds of its users disappeared. The company is now hammering agreements with individual countries and record labels to stream music legally, but it’s going to be a long and tedious process, says Wilson.

2. No matter how many users you have, massive valuations are fleeting if you can’t make money – even if you are Spotify and Pandora.

Spotify recently banked $100 million from Goldman Sachs, valuing the company at $3 billion. Even though Pandora has been trading down 46 percent from its 2011 debut, the company still has a $1.21 billion market cap. But those valuations will disappear if neither company can stem their operating losses, and fast, says Wilson.

A PrivCo report shows that while Spotify earned $244 million in revenue during 2011, the company lost $60 million in the same period. Even though a leaked report says that Spotify’s revenue could double in 2012, if the company losses keep climbing, Wilson says Spotify’s value won’t stay in the billions forever. “Spotify is probably not worth $3 billion,” he says. “It might be worth something, someday to someone, but if they still can’t figure how to make money, they’ll lose.”

Pandora faces the same struggle as Spotify, trying to get users, not advertisers, to pay for its service. For the second quarter of its 2013 fiscal year, the company booked $101.3 million in revenue, but lost $5.4 million. Though its advertising revenue remains strong at $89.4 million, it is having a hard time converting freeloading listeners into paid subscribers, despite its own ad attempts. “Pandora will not be worth billions for long if they are losing money,” Wilson says.

3. That said, Pandora has the right idea. Advertising dollars will move increasingly to internet radio, and artists will start to make money from their music.

FM radio advertising is a $17 billion market, and Wilson believes that as Internet radio services like Pandora, Songza, and Rdio take the place of traditional broadcast, those ad dollars will move online. That’s good for online radio streaming startups, but even better for the artists whose music is played over these apps and websites.

When a song is played on the radio, the artists gets a royalty. But to play a song over Rdio or Pandora, those companies must pay licensing costs and higher royalties, which go right back to the artists. Pandora has said that it pays out $1 million to Adele, Coldplay, and others.

Wilson is optimistic that as more music enthusiasts ditch radios for apps, more money will find its way to artists. That might be the case for radio apps now, but that could easily change as Pandora has been looking for ways to reduce its royalty costs. The company recently sued the American Society for Composers, Authors and Publishers, a major royalty collection agency, seeking lower licensing fees. Pandora is also lobbying Congress to pass the Internet Radio Fairness Act to bring down it’s licensing costs, a piece of legislation that many artists oppose.

4. Selling virtual goods might be a better business than selling music.

Wilson would be remiss to not plug his own investment in Turntable.fm during his keynote. If you’re not familiar with the service, users create themed music rooms, like “I Love the 80s” or “Indiescribable,” which they join as a virtual DJ. Others join the room as listeners, and influence which songs are played based on a thumbs-up/thumbs-down voting system. Too many down-votes will force the song to skip to a new one on the playlist, but up-votes earn you “DJ points,” credits you can use to unlock new avatars.

Turntable.fm doesn’t charge its users for a subscription and doesn’t serve ads. Though it’s not bringing in revenue right now, there is talk of charging for DJ points, so anyone can get a little bit of cred without getting up on the virtual DJ platform.

While that will surely vex some current Turntable.fm users, charging for virtual goods might be the next big revenue-earning tool for music businesses. “Ads can carry a lot of the load, but not all,” says Wilson. “Turntable.fm’s virtual goods model could work well as a new revenue stream for other music businesses.”

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Scott Dadich Named Top Editor at Wired

LOS ANGELES (TheWrap.com) – Scott Dadich has been named editor-in-chief of Wired magazine, it was announced Friday by Condé Nast editorial director Tom Wallace.

The appointment marks a homecoming for Dadich, who served as Wired’s creative director from 2006 to 2010. He replaces Chris Anderson as the publication’s top editor.

Since 2010, Dadich has served as vice president, editorial platforms and design at Conde Nast. In this role, he oversaw the creative efforts to bring Condé Nast’s storied brand portfolio to emerging digital channels.

“Scott has been at the forefront of the company’s digital innovation for the past three years, developing the design for a digital magazine that has become an industry standard,” Wallace said. “His return to Wired, where he served as creative director and won three National Magazine Awards for Design, will ensure that it continues its pace-setting growth.”

While Dadich was creative director at Wired, the magazine received three consecutive National Magazine Awards for Design. He is the only creative director ever to win both the National Magazine Award for Design and the Society of Publication Designers Magazine of the Year Award for three consecutive years (2008-2010).

“I’m excited to return to Wired, which has had such a tremendous impact on my life and my career,” Dadich said. “I’m honored to have the chance to build on the legacy of innovation that Louis and Jane started some 20 years ago. And I am grateful to my friend and colleague Chris and the incredible Wired staff. I look forward to finding new opportunities to delight and surprise the Wired community, both with the stories we tell and in the ways in which we tell them.”

Prior to Wired, he was the creative director of Texas Monthly, which was nominated for 14 National Magazine Awards during his tenure and won for General Excellence in 2003.

Celebrity News Headlines – Yahoo! News

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N.F.L. Paid Millions Over Brain Injuries, Article Says

Three retired N.F.L. players received at least $2 million in disability payments as a result of brain trauma injuries from their playing days, according to an article by ESPN and the PBS series “Frontline.”

The payments were made in the 1990s and early 2000s by the Bell/Rozelle N.F.L. Player Retirement Plan, a committee comprising representatives of the owners, players and the N.F.L. commissioner.

The N.F.L. is being sued by several thousand retired players who accuse the league of concealing a link between hits to the head and brain injuries. The league denies the accusation and has said it did not mislead its players.

The article, however, cites a letter written in 2000 from the director of the retirement plan who stated that Mike Webster, who retired in 1990, had a disability that was “the result of head injuries he suffered as a football player with the Pittsburgh Steelers and the Kansas City Chiefs.”

Webster died in 2002. The article cites similar payments to Gerry Sullivan, a lineman for the Browns, and a third, unnamed player.

The article provides more details than were known about Webster’s case; his fight for disability benefits was known. The retired players say that “the N.F.L.’s own physician independently examined Webster and concluded that Webster was mentally ‘completely and totally disabled as of the date of his retirement and was certainly disabled when he stopped playing football sometime in 1990.’ ”

However, Greg Aiello, a spokesman for the N.F.L., said that the ESPN report “underscores that we have had a system in place with the union for many years to address player injury claims on a case-by-case basis.” The disability plan, he said, was “collectively bargained with the players.”

“All decisions concerning player injury claims are made by the disability plan’s board, not by the N.F.L. or by the Players Association,” Aiello said.

The board has seven members: three owner representatives, three player representatives and one nonvoting representative of the commissioner.

The disclosures in the article came a day after Commissioner Roger Goodell spoke at the Harvard School of Public Health, where he trumpeted the league’s efforts to increase the safety of its players and proclaimed that “medical decisions override everything else.”

Jeffrey Standen, a law professor at Willamette University in Oregon, said the details about Webster’s disability payments did not amount to a smoking gun. The plan’s determination that Webster sustained head injuries is not the same as the N.F.L. making that decision.

“The problem is the N.F.L. didn’t make the admission; it was the board,” Standen said. “They’re not the same body. As a legal matter, the fact that they paid Webster is not going to matter much in legal terms. But it’s evidence to throw in front of a jury.”

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DealBook: As Labor Talks Collapse, Hostess Turns Out Lights

What might be the last Twinkie in America — at least for a while — rolled off a factory line Friday morning. It was just like the millions that had come before it, golden, cream-filled empty calories, a monument to classic American junk food.

But it is likely to be the last under the current management. After not one but two bankruptcies, Hostess Brands, the beleaguered purveyor of Twinkies, Ho Hos, Sno Balls and Wonder bread, announced plans to wind down operations and sell off its brands.

Since filing for Chapter 11 bankruptcy protection in January, Hostess has been trying to renegotiate its labor contracts in a bid to cut costs. But the talks fell apart, and last week one union went on strike.

The so-called liquidation will probably spell the end of Hostess, an 82-year-old company that has endured wars, countless diet fads and even an earlier Chapter 11 filing. Although the company could theoretically negotiate a last-minute deal with the union, Hostess is moving to shut factories and lay off a large majority of its 18,500 employees.

But Twinkies and the other well-known brands could eventually find new life under a different owner. As part of the process, Hostess is looking to auction off its assets, and suitors could find value in the portfolio.

“The potential loss of iconic brands is difficult,” said the company’s chief executive, Gregory F. Rayburn. “But it’s overshadowed by the 18,500 families that are out of work.”

The company’s current problems stem, in part, from the legacy of its past.

An amalgam of brands and businesses, the company has evolved over the years through acquisitions. In the 1960s and 1970s, the company, then called Interstate, bought more than a dozen regional bakeries scattered across the country. A couple of decades later, it paid $330 million for the Continental Baking Company, picking up a portfolio of brands like Wonder and Hostess.

As the national appetite for junk food waned, the company fell on hard times, struggling against rising labor and commodity costs. In 2004, it filed for bankruptcy for the first time.

Five years later, the company emerged from Chapter 11 as Hostess Brands, so named after its most prominent division. With America’s new health-conscious attitude, it sought to reshape the business to changing times, introducing new products like 100-calorie Twinkie Bites.

But the new private equity backers loaded the company with debt, making it difficult to invest in new equipment. Earlier this year, Hostess had more than $860 million of debt.

The labor costs, too, proved insurmountable, a situation that has been complicated by years of deal-making. The bulk of the work force belongs to 12 unions, including the International Brotherhood of Teamsters and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union.

The combination of debt and labor costs has hurt profits. The company posted revenue of $2.5 billion in the fiscal year 2011, the last available data. But it reported a net loss of $341 million.

With profits eroding, the company filed for Chapter 11 in January. It originally hoped to reorganize its finances, seeking lower labor costs, including an immediate 8 percent pay cut.

The negotiations have been contentious.

The Teamsters, which has 6,700 members at Hostess, said it played an instrumental role in ousting Hostess’s previous chief executive, Brian J. Driscoll, this year after the board tripled his compensation to $2.55 million. The union also hired a financial consultant, Harry J. Wilson, who had worked on the General Motors restructuring.

While highly critical of management missteps, the Teamsters agreed in September to major concessions, including cuts in wages and company contributions to health care. As part of the deal, the union was to receive a 25 percent share of the company’s stock and a $100 million claim in bankruptcy.

“The objective was to preserve jobs,” said Ken Hall, the Teamsters’ general secretary-treasurer. “When you have a company that’s in the financial situation that Hostess is, it’s just not possible to maintain everything you have.”

But Hostess reached an impasse with the bakery union. Frank Hurt, the union’s president, seemed to lose patience with Hostess’s management, upset that it was in bankruptcy for the second time despite $100 million in labor concessions. He saw little promise that management would turn things around.

“Our members decided they were not going to take any more abuse from a company they have given so much to for so many years,” said Mr. Hurt. “They decided that they were not going to agree to another round of outrageous wage and benefit cuts and give up their pension only to see yet another management team fail and Wall Street vulture capitalists and ‘restructuring specialists’ walk away with untold millions of dollars.”

About a month ago, Mr. Rayburn said, the bakers union stopped returning the company’s phone calls altogether. For its part, the bakery union said the company had taken an overly aggressive approach. David Durkee, the union’s secretary-treasurer, said Hostess had given an ultimatum. “They said, ‘If you do not ratify this, we are going to liquidate based on your vote.’ ”

With the company standing firm, the bakery union struck last week, affecting nearly two-thirds of the company’s factories across the country. The Teamsters drivers honored the picket line, further shutting down the operations. The company gave union members until 5 p.m. on Thursday to return to work.

Mr. Rayburn said the financial strain of the strike was too much for the company, which had already reached the limits of its bankruptcy financing. Over the last week, Hostess lost tens of millions of dollars as many customers’ orders went unfilled. And its lenders would not open their wallets one more time.

By Thursday morning, Hostess’s executives were ensconced in the company’s headquarters in Irving, Tex., still hoping that enough employees would return to work to resume production. A small number of workers had already crossed the picket lines that had sprung up at most of the baker’s factories, but more than 10 plants remained well below their necessary capacity.

Mr. Rayburn’s deadline of 5 p.m. passed without either side backing down. Soon after, executives asked the company’s legal advisers to finish the court motions that would begin the liquidation. Papers had been drawn up well before that afternoon.

Around 7 p.m., Mr. Rayburn had his final discussions with the company’s board and his senior managers and made the call to begin winding down.

“We were trying to focus on where people were having success, but I had to make a call,” Mr. Rayburn said.

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