News that Tesco are set to offer a revamped version of their music download service has opened up a debate about whether they can actually take a slice of the action from iTunes or is the venture doomed from the start?

While iTunes is by far and away the number one music download company in the world, Tesco is one of the leading worldwide supermarket companies, and the number one retailer in the UK by a distance. This competition between the two will be fought on very different terms with Tesco looking to use its reach and availability for their regular shoppers, while iTunes very much attracts the young “hip” element of today.

The old Tesco music download system was very much limited in its appeal because embedded software ensured that the music could only be played on certain products and was not transferable. However, it now appears that Tesco have come to some kind of arrangement with a number of record companies to enable restriction free downloads to be sold to customers. While they are not releasing the names of the record companies in question we will no doubt be hearing from them very shortly!

The fact that Tesco are looking to use there massive exposure in the UK retail market to attack the music download sector will be something of a worry to iTunes (and owner Apple) because as we have seen in a number of other non-food ventures, Tesco have a habit of hitting the spot.

One other concern for iTunes is the fact that Tesco are very much a price related company and will be looking to instigate some kind of price war to attract both customers and the headlines. Apple have had it too easy in the eyes of many, with a number of record companies complaining about the low payments artists receive, but this may all be about to change.

Ever since the iPhone was launched it has enjoyed something of an elevated position in the UK market place with a large pricing premium present since day one. However, O2 and Carphone Warehouse have announced plans to cut the cost of the phone by a substantial £100 in the hope that more users will be attracted. So will the plan work?

As in any economic slowdown it is always the so-called luxury goods which are the first to feel the pinch and they don’t come more luxurious than the iPhone! The price reduction of some £100 represents a saving of over 30% from the current price and is being seen by many as a desperate move, but is this really the case? Is the iPhone phenomenon over? Have we grown tired of this “overpriced” model?

While there is every chance that consumers around the world are tightening their belts, the more obvious reason for the proposed price reduction is the fact that we will be seeing the iPhone 2 anytime now! Do not be drawn into a false sense of security, do not think that you have got one over the boys and girls at Apple because these are very sharp cookies!

Apple are playing the consumer game, reducing the price of their original iPhone in order to both stimulate demand in the iPhone brand, sell some of the mountain of stock they have and also get the market ready for iPhone part two. But when will the iPhone 2 finally make its appearance?

As the current worldwide economic situation continues to worsen there is every chance that new technology will be held back until at least the feel good factor returns. How long this will take and to what extent we might see a sharp rebound in consumer confidence remains to be seen, but you can guarantee that Apple will be monitoring the situation very carefully, and will know instinctively when to pounce!

In a move which is sure to cause much controversy in the market place, Virgin Media Chief Executive Officer Neil Berkett has hit back at claims that the web users are the ones who should dictate which content is delivered to their screens. As the row over ISPs abusing their privileged position continues, Virgin has been quoted as boasting “pay us more and we will deliver your content faster”. So who is right? Who should control the content you see on your screens?

Since the onset of the internet and the mushrooming of the ISP market, all net providers have been “net neutral” meaning that all content is delivered at the same speed, with no bias and no monetary influences. Virgin have now broken ranks with the ISP rank and file so no doubt we will be seeing a politically orientated news feed from them with a case of “money talks”.

While we all understand that they are a commercial business looking to make money, the distain with which they appear to be treating their ISP customers has shocked many – don’t tell us what you want, let us decide what you see. The problem now is that because Virgin has broken ranks and look set to rake in the money from their new approach, more and more other ISPs will be forced to follow suit in order to retain their market share.

Even though there is no doubt that Virgin has been ground breaking on a number of issues in the past, this for many people is one step too far and a throw back to the olden days. Net neutrality is vital for the future and if this latest move by Virgin were to fail, they risk loosing more than just a few content delivery contacts.

Us web surfers have very long memories!

A camera which can measure your smile? It must be another invention from the Far East hotbed of Japan.

While we had a computer last week that was supposedly able to decipher whether you were looking for love via you face, we now have a camera which is capable of rating your smile on a scale of 1 to 100. So what exactly does this camera do and what use will it be?

On the surface this may seem like a complete waste of money, but there are actually some very interesting possibilities which it opens up to the wider market. Rather than just take a snap shot of your mouth, the camera will actually pick up on all of your facial expressions, the curve of your lips, eye movement and other facial characteristics which sometimes go unnoticed by the human eye.

It has been predicted that very soon computers will be able to analyse your mood just by looking at your face, detect possible medical conditions and the ultimate systems, the unbeatable lie detector test. Those who are up to speed with the latest camera technology will know that there is already a Sony system out there which will wait until you are smiling before it takes a photograph, although this latest development from the Japanese giants has taken the technology substantially further forward. So what next?

There are many people who are already suggesting that this new system will allow robots to read the mood and reactions of humans, and while this in itself is something of a worrying development, the new system brings the potential that little closer. However, until we have robots which are capable of reading our minds and taking over the human race, a simple smile analysis system does not seem too harmful!

It has been billed as your very own mini-gym where you can exercise using your Wii console and your Wii controller, but early signs are that you might have put on a little more weight before you get hold of your own copy! While we are still 2 weeks away from launch in the UK, the game and balance accessory are literally selling like “hot cakes”. Sales in Japan topped 1 million in the first month of sale, and it looks as though demand in the UK is going to be just as strong.

There are many places in the UK taking pre-launch orders, such as HMV, Amazon and Play.com but even some of these pre-launch deals have already sold out without the first game being delivered. As we approach the Christmas buying season for many retailers the chances are that the majority of UK online and offline retailers will not be able to order Wii Fitness in sufficient numbers to fulfil demand. So what is it all about? What can it do for you?

Nintendo really do seem to have hit onto a winner with this one, which is targeted at both the children and adult markets. The game takes the pressure and boredom out of exercise, allowing users to enjoy themselves and improve their health and fitness at the same time – families can do it together, you can do it when you are alone or you can test your friends to see who is the fittest!

Initially many believed that the Wii Fitness game was just a light hearted attempt at attracting fitness fanatics to the Wii market, but independent research has shown that the game can and does improve fitness and can be a useful addition for those looking to lose weight. What else will Nintendo bring out for their award winning Wii? Time will tell………….

How bizarre that the first time the BBC actually deliver something ground breaking they are hit with a barrage of criticism which seems to be growing louder each day. While the likes of YouTube have revolutionised the internet, the BBC iPlayer (which allows you to watch full programs on your computer during the 7 days after they were shown) has taken the sector to a different level. Figures show that viewing requests grew by 25% alone last month with over 17 million people using the iPlayer to watch their favourite BBC programs. So what is wrong?

It seems that this massive increase in use has caught many IPS by surprise and shown the possible limitations of their current systems. Tiscali have particularly vocal over the last few days suggesting that the BBC should contribute to the estimated £800 million cost to upgrade the current system, but is this really fair?

You will notice that we have not seen the likes of Google suggesting that the BBC should contribute, possibly because they are receiving massive exposure for their Google adverts via the new systems. It seems that while Tiscali and some other companies were more than happy for the consumer to pay for the last round of network upgrades, they now feel that successful companies should subsidise their services and infrastructure upgrades – in which other business arena has this even been suggested?

The truth is that the iPlayer is the first of many extensive online media services which are sure to come on line over the next decade, services which will show the serious under investment which the UK internet sector has experienced for some time. We hear these big headline numbers with regards to investment by the ISPs but the truth is that we, the customer, have been funding these for some time. As more and more ISPs clamour to blame the BBC for their short comings we may well see some major changes in the industry over the next few years.

Companies such as BT have recognised the problem and are doing something about it, while others are complaining about the added cost – which companies looks as though they are struggling and which seem fully funded for the future?

News that Microsoft are on the verge of releasing a Wii style controller might send shudders down the spine of Nintendo executives, but do they really have anything to worry about in the short term?

The fact that rumours are now circulating the internet that a Wii type controller for the Xbox 360 will be in the shops by Christmas is no surprise, what is a surprise is that it seems to have taken Nintendo’s so called competitors so long to hit the market. Those who believe that both Microsoft and Sony have not been working on their own style Wii controllers for some time are kidding themselves. Work started with these two outfits as soon as the Wii started to take market share, but they really do seem to be miles behind Nintendo on the technology curve. So should Nintendo be worried?

If the rumours are correct the new Xbox 360 controller with have everything that the Wii has, and more, with cameras, speakers, possible VoIP capabilities all mentioned. However, as yet there is no mention of a secondary controller, and the headline rumours have also attracted further comment about the difficulties which Microsoft seem to be having. As far as Sony, there has been no news of late on their attempt to hijack the Wii controller market, but Christmas 2008 is a long way off and there is plenty of time for new products to be released.

Those who seem to automatically assume that Nintendo will be running scared at the launch of competing controllers forget one major fact, Nintendo are already there and they have a vast array of games which make full use of the Wii controller, something which none of their competitors are anywhere near replicating. Those who expect Nintendo to sit still and ease back on development also miss the point that they have a controller on which to build for the future, and we can certainly expect another version(s) of the Wii controller by Christmas 2008.

The fight is getting a little more balanced, but Nintendo are still very much ahead on points!

Even though we all seem to take the internet for granted, there has been a massive increase in the speed and capacity of the UK internet system to quench the thirst of the UK consumer for more bandwidth and bigger and better services. The likes of YouTube and the recently launched BBC iPlayer have ensured that a new breed of internet surfer hits the virtual super highway, but is all set to go wrong? Is the internet becoming to busy? Can systems in the UK cope with the ever increasing demand?

Some experts are predicting that unless radical technology upgrades are put in place now, the internet could literally grind to a halt in 2010 if it continues to increase in size at the current rate. While there is no problem with the fibre optic lines which carry the signals too and from your home, it is the last mile of highly inefficient copper wiring which is causing the most concern. It is this area of the link which is seen to be at most risk with many systems already pushed to the limit.

When you consider that YouTube in 2007 used more capacity in that year than the whole internet used in 2000 – a frightening figure and one which should start to ring alarm bells – the situation may become a little clearer. It is not just YouTube which is exerting intense pressure on the system with other services such as the BBC iPlayer starting to have a real impact. Many Internet Service Providers are being forced to slow down their systems at peak points of the day to ensure that their servers do not crash.

This fear of internet meltdown is no scare story and while developments in technology may well see us through this tricky period, current concerns are real and need to be addressed.

While Google has enjoyed unrivalled success for some years now there are signs that the inner workings of the company may not be as harmonious as many people had assumed. News that Douglas Merrill, Chief Information Officer at Google and Vice President of Engineering, is on his way to the record label EMI has raised a few eyebrows. Hot on the heels of this we have also heard that Ethan Beard, head of social media at Google, has quit to join social network leader Facebook. So what is going on?

While it is a little premature to say that Google is in trouble, these resignations are fairly high profile and in areas upon which Google has invested a great deal of time and money over the last few months. Even though there are likely to be more than capable under studies who can step into the vacant roles it does show for the first time that there is actually life after Google. For many years a position with Google has been seen as gold dust and something which many people would give their right arm for. However, recent events have now left Google looking more like a traditional employer, whereby if staff feel unloved or under paid then they will jump ship.

The social media side in particular is an area in which Google has been very keen to become more heavily involved. Recent ties up with some of the leading social network sites have seen Google’s Ads appear on more and more high profile websites around the world.

There is now speculation that Google may well look to acquire a readymade social network site rather than go trough the stress and strain of setting up their own brand. While they have more than enough funding in the bank to acquire any social network they choose, you can guarantee the price increases dramatically once they become involved. Interesting times ahead…..

While the term Software Escrow, or Source Code Escrow, may be a little unfamiliar to many people who are reading this blog, it actually plays a vital role in the smooth running of many businesses around the world. In simple terms, Software Escrow it used when a company licence a particular software package from a licensee for an agreed fee, with various conditions attached.

In normal circumstances a business might actually purchase the software outright, but for many ongoing software development projects it can prove more beneficial to licence the product rather than buy outright – thereby ensuring that you have access to the latest versions, updates and support. This is where the vast array of Software Escrow Agents on the market come into play, with a role similar to that of a third party holding payment until the goods are delivered, but with a slightly different twist.

The nightmare scenario for many licence holders would be the licensee going out of business and not being able to access the software which their whole business may depend on. Normally if this were the case then the business would be forced to look at a new package which offered maintenance, backup, etc, but at the very least this would disrupt their business operations. Nowadays the done thing is to engage the services of a Software Escrow Agent who will hold the original source code from the software package which is being licensed.

If certain conditions are breached, for example if the licensee was not carrying out their maintenance duties or errors were going unattended, this could invoke an action such as the release of the original source code to the licence holder. While it would take some time, the possession of the original code would allow problems to be fixed through other third parties if for some reason (e.g. bankruptcy) the originally software coder was not able to help.

This protects the future use of the system by the licence holder and ensures that the licensee would do their best to ensure that the original highly confidential source code was never made public.