3 Sep, 2011  |  Written by  |  under News

LONDON – WikiLeaks disclosed its entire archive of U.S. State Department cables Friday, much if not all of it uncensored — a move that drew stinging condemnation from major newspapers which in the past collaborated with the anti-secrecy group's efforts to expose corruption and double-dealing.

Many media outlets, including The Associated Press, previously had access to all or part of the uncensored tome. But WikiLeaks' decision to post the 251,287 cables on its website makes potentially sensitive diplomatic sources available to anyone, anywhere at the stroke of a key. American officials have warned that the disclosures could jeopardize vulnerable people such as opposition figures or human rights campaigners.

A joint statement published on the Guardian's website said that the British publication and its international counterparts — The New York Times, France's Le Monde, Germany's Der Spiegel and Spain's El Pais — "deplore the decision of WikiLeaks to publish the unredacted State Department cables, which may put sources at risk."

Previously, international media outlets — and WikiLeaks itself — had redacted the names of potentially vulnerable sources, although the standard has varied and some experts warned that even people whose names had been kept out of the cables were still at risk.

But now many, and possibly even all, of the cables posted to the WikiLeaks website carried unredacted names.

There's a debate over what kind of an impact that will have.

In an interview with the AP earlier this week, former U.S. State Department official P.J. Crowley warned that the new release could be used to intimidate activists in authoritarian countries. Crowley said "any autocratic security service worth its salt" probably already would have the complete unredacted archive of cables, but that the fresh releases mean that any intelligence agency that did not "will have it in short order."

WikiLeaks staff members have not returned repeated requests for comment sent in the past two days. But in a series of messages on Twitter, the group suggested that it had no choice but to publish the archive because copies of the document were already circulating online following a security breach.

WikiLeaks has blamed the Guardian for the blunder, pointing out that a sensitive password used to decrypt the files was published in a book put out by David Leigh, one of the paper's investigative reporters and a collaborator-turned-critic of WikiLeaks founder Julian Assange.

But the Guardian, Leigh and others have rejected the claim. Although the password was in fact published in Leigh's book about seven months ago, Guardian journalists have suggested that the real problem was that WikiLeaks posted the encrypted file to the Web by accident and that Assange never bothered to change the password needed to unlock it.

In their statement, the Guardian's international partners lined up to slam the 40-year-old former computer hacker.

"We cannot defend the needless publication of the complete data — indeed, we are united in condemning it," the statement read. It added: "The decision to publish by Julian Assange was his, and his alone."

The media organizations' rejection is a further blow to WikiLeaks, whose site is under financial embargo and whose leader remains under virtual house arrest in an English country mansion pending extradition proceedings to Sweden on unrelated sexual assault allegations.

It's also a sign of the borderless online whistleblower's increasing estrangement from traditional media outlets. Assange and his supporters have long feuded with the Guardian and The New York Times, and in a recent statement the group noted that other Western media organizations had "slowed their rate of publishing" stories derived from the cables.

As a result, the anti-secrecy site said it would increasingly turn to "crowdsourcing" — that is, relying on Internet users to sift through its leaked documents and flag important material.

It's a relatively new tactic for the group, which has in the past relied on mainstream partners to organize and promote its spectacular leaks of classified information — including hundreds of thousands of U.S. intelligence documents detailing the course of America's wars in Iraq and Afghanistan.

WikiLeaks says the process is working, pointing to one document flagged by Twitter users who've already begun perusing the newly released files.

The cable, filed in 2006, carries an explosive allegation that U.S. forces entered a house during a 2006 raid in Iraq, handcuffed 10 members of the same family and executed them.

Although the U.N. letter in which the allegation was made was five years old, its publication put new pressure on the already strained negotiations over keeping U.S. forces in Iraq. Iraq's government said Friday that it is investigating, and some officials said the document is reason enough for the country to force the American military to leave instead of signing a deal allowing troops to stay beyond a year-end departure deadline.

"Crowdsourcing has proved to be a success," WikiLeaks said.

But amid the controversy over the unredacted cables, some supporters are keeping their distance. The press freedom group Reporters Without Borders said Thursday that it had temporarily suspended its WikiLeaks "mirror site." Such sites act as carbon-copies of their originals, relieving pressure due to heavy traffic and preserving data in case of attack.

In a statement, Reporters said it had "neither the technical, human or financial resources to check each cable" for information that could harm innocent people and thus "has to play safe."

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Greg Keller in Paris contributed to this report.

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Raphael G. Satter can be reached at: http://twitter.com/razhael

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2 Sep, 2011  |  Written by  |  under News

SAN FRANCISCO – Netflix's negotiations to keep a key piece of its Internet video library have collapsed, dealing a major blow to the largest U.S. video subscription service as it raises the prices for most of its 25 million customers. The setback triggered a nearly 9 percent drop in Netflix Inc.'s stock price.

Starz Entertainment delivered the bad news Thursday in a terse statement announcing that it won't renew a contract that allows Netflix to show a lineup of recently released movies and TV shows over high-speed Internet connections.

That means Starz content will be removed from Netflix's streaming service starting in March. Starz' library includes movies from Walt Disney Co.'s assorted studios and, until recently, Sony Corp.

The talks fell apart after the two sides disagreed over the value of the Starz content and how it should be sold to Netflix subscribers, according to people familiar with the negotiations. The people asked not to be identified because they weren't authorized to speak publicly.

The content from Starz' cable TV channel played an instrumental role in increasing usage of Netflix's Internet service and helped Netflix add nearly 17 million subscribers since the deal was signed in October 2008.

That growth probably wouldn't have happened without the boost that the Starz deal gave to Netflix streaming, said Janney Montgomery Scott analyst Tony Wible.

"What created (Netflix's success in streaming) is frankly, initially getting Starz, getting that content, which got you more subscribers, which allowed you to buy more content," Wible said. "The virtuous cycle that has made Netflix what it is could work against it. If you lose content, you lose subscribers; ... it could be a downward spiral from here."

Netflix had been expected to work out a new contract with Starz, although at a much higher price than the estimated $30 million a year that it had been paying under the current agreement. Netflix CEO Reed Hastings acknowledged earlier this year that the company might have to pay as much as $250 million a year to retain the Starz rights when the current contract expires in February.

But those hopes were dashed, if not blown up completely, with Thursday's bombshell dropped by Starz CEO Chris Albrecht.

The timing of the announcement was seen a way to kick Netflix in the shins at a particularly vulnerable time. It came on the first day of a new Netflix pricing system that will hit U.S. subscribers with price increase of as much as 60 percent if they want to continue to get DVD rentals through the mail along with unlimited streaming of Internet video. The new pricing system has incensed a large group of Netflix subscribers who have threatened to cancel their accounts, a backlash that could intensify if it looks like Netflix's streaming library is becoming less attractive.

Albrecht said Starz had decided against a renewal "to protect the premium nature of our brand by preserving the appropriate pricing and packaging of our exclusive and highly valuable content."

The contract renewal talks broke down when Netflix refused to meet demands that could have driven up the annual licensing rights to $300 million or more, according to one person familiar with the negotiations.

A major sticking point arose when Starz insisted its content be corralled on a higher-price tier, another person said. Instead of making their content available to any Netflix subscriber paying just $8 per month, Starz executives wanted viewership limited to people paying at least $16 per month for a package that bundles DVD rentals with Internet video.

That stipulation was seen as a way to preserve Starz' relationship with cable and satellite TV distributors, who include Starz in channel packages that cost far more than the $8 monthly fee for Netflix streaming. Albrecht said Starz, part of Liberty Media Corp., is in an "excellent position" to make more money from other sources besides Netflix.

Netflix tried to downplay the possible loss of the Starz relationship. The company, which is based in Los Gatos, Calif., said it would spend the $250 million that Hastings had earmarked for the Starz renewal to buy audience-pleasing content from other distributors. Hastings has left no doubt that he intends to invest heavily in Netflix's Internet video library because he wants more subscribers to use that option. That would allow Netflix to cut postage and other costs to mail DVD rentals to its customers.

As it is, Starz has become less important to Netflix as the service expanded its streaming rights. In June, Sony also stopped allowing its movies, which include "Easy A" and "Grown Ups," to part of Starz streaming in June. Those factors have reduced Starz's share of Netflix streaming viewership in the U.S. to 8 percent, according to Netflix.

The rising cost for Internet streaming rights is one of the reasons that Netflix raised its prices for people who want to rent DVDs through the mail and stream video. The changes don't affect customers who subscribe to the streaming-only plan.

Starz's decision to end the talks with Netflix underscores the escalating tensions with pay-TV services that view Netflix's popularity as a competitive threat. Time Warner Inc.'s HBO has consistently refused to license its shows for Netflix streaming, and Showtime recently has declined to make some of its top series, including "Dexter" and "Californication" available to the service.

Morningstar analyst Michael Corty said he thinks Netflix can salvage the Starz deal, given there is still six months before the current contract expires. To do that, Netflix will likely have to pay even more than it intended because Starz appears to have more negotiating leverage, Corty said.

Although Albrecht's statement made it sound as if there is little chance of a new deal, Netflix left the door open.

"We have tremendous respect for the Starz creative team, and we look forward to someday licensing some of their original or licensed content," Netflix said in a statement.

The falling out with Starz added to the worries of Netflix investors already fretting about the higher prices driving away subscribers. Netflix's stock plunged $19.97 to $213.30 in extended trading Thursday, after the announcement by Starz.

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Nakashima reported from Los Angeles.

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photo(AP) - Bay Area Rapid Transit (BART) agency Chief of Police Kenton Rainey listens during a board of directors public meeting at BART headquarters in Oakland, Calif., Wednesday, Aug. 24, 2011 to help ease tensions over whether there should be a policy on cutting wireless access to its stations during protests. The discussion was whether it wants to continue using the tactic, which drew unfavorable comparisons to Hosni Mubarak's attempts to cut Internet access to most of Egypt to quell demonstrations protesting his regime. (AP Photo/Paul Sakuma)


photo(AP) - Kathleen Martin-Weis, acting director of the FDA office of criminal investigations, and Peter Neronha, U.S. attorney for the district of Rhode Island, announce a $500 million settlement with Internet giant Google over Canadian drug advertisements Wednesday, Aug. 24, 2011, in Providence, R.I. The agreement settles a federal investigation into Google's distribution of online ads from Canadian pharmacies that were illegally selling prescription and non-prescription drugs to American consumers. (AP Photo/Joe Giblin)


30 Aug, 2011  |  Written by  |  under News


A dedicated iPad station is seen in front of an iPhone at the Apple store in New York May 23, 2011. REUTERS/Shannon Stapleton

A dedicated iPad station is seen in front of an iPhone at the Apple store in New York May 23, 2011.

Credit: Reuters/Shannon Stapleton


By Alistair Barr

SAN FRANCISCO |
Mon Aug 29, 2011 3:27pm EDT

SAN FRANCISCO (Reuters) - Amazon.com Inc may sell as many as 5 million tablet computers in the fourth quarter, making the largest Internet retailer the top competitor to Apple Inc in this fast-growing niche of the consumer PC market, Forrester Research said on Monday.

Amazon.com has to price its tablet "significantly" below competing products and have enough supply to meet demand, but if the company can pull this off it can "easily" sell 3 million to 5 million units in the final three months of 2011, Forrester's Sarah Rotman Epps predicted.

Apple has sold almost 30 million iPads since launching its tablet in April 2010. Rival products from companies including Samsung Electronics Co, Research in Motion and Motorola Mobility have failed to mount a serious challenge to that early lead. This month, Hewlett-Packard scrapped its TouchPad after sales languished.

"Thus far, Apple has faced many would-be competitors, but none have gained significant market share," Epps wrote. "Not only does Amazon have the potential to gain share quickly but its willingness to sell hardware at a loss, as it did with the Kindle, makes Amazon a nasty competitor."

One problem with iPad rivals has been that developers have so far waited before creating a lot of applications, or apps, for the devices, Forrester noted.

Apple claims about 100,000 custom-built iPad apps, while Google's Honeycomb platform, which is the tablet version of the Android operating system, has attracted fewer than 300 apps, according to Forrester.

"If Amazon's Android-based tablet sells in the millions, Android will suddenly appear much more attractive to developers who have taken a wait-and-see approach," Epps said.

Amazon's Kindle e-reader is lighter and smaller than the iPad, but Apple's tablet has a browser and other services for enhanced reading and researching, Fred Wilson, a venture capital investor and principal at Union Square Ventures, said in a recent blog.

"What we all want is a hybrid of the two -- a Kindle that is a full-blown tablet computer with a browser, apps, and an OS," Wilson added. "It looks like Amazon is going to bring that to market this fall ... It looks like a killer product."

Amazon shares were up 3.4 percent at $206.03 in afternoon trading on Monday, leaving them up more than 10 percent so far this year.

Apple shares were up 1.6 percent at $389.87. The stock is up almost 19 percent so far in 2011.

(Reporting by Alistair Barr; Editing by Tim Dobbyn and Matthew Lewis)

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