April 27, 2024

Archives for September 2012

Disruptions: Your Brain on E-Books and Smartphone Apps

Michael Appleton for The New York Times

Last week, my brain played a cruel trick on me. While waiting for my flight to take off, I was reading The New Yorker, the paper version, of course — I know the rules. I became engrossed in an article and swiped my finger down the glossy page to read more.

To my surprise, nothing happened. I swiped it again. Nothing.

My brain was trying to turn the page the same way I do on my iPad, with the swipe of a finger. (I quickly realized that I had to physically turn the page.)

A few days later, my brain played another technology-related trick. In New York City, I hopped in a cab and told the driver, “59th and 6th, please.” I didn’t think anything of it when we arrived at my destination and I said thanks and hopped out of the cab, without paying.

The cabby yelled at me bluntly, clearly not very happy: “These taxis aren’t free. Are you gonna pay me?”

I quickly apologized and paid him — with a good tip — when I realized that my brain thought I was in an Uber car, not a taxi.

In San Francisco, where I live, I often use a car service called Uber when I go out for the evening. You order a car from your smartphone, it arrives, you get in, tell your driver where to go, and then get out at your destination. There is no money exchanged; your credit card is automatically billed after the trip, and you are e-mailed a receipt.

But I did spend a few moments standing at the curb trying to figure out if I was suffering from some sort of mental fatigue.

I called the closest thing to a technology doctor I know: Clifford Nass, a professor of cognitive science and communications at Stanford University, and the author of “The Man Who Lied to His Laptop: What Machines Teach Us About Human Relationships.”

“Brains love habits; brains are built for efficiency,” Mr. Nass said, noting that I wasn’t sick, maybe just a little too technological for my own good. “Our brains are built to put two things together in space and time and then say, ‘Great, I can remember that these go together.’ Then we execute on that, like you trying to scroll down a piece of paper with your finger.”

Although videos have been floating around the Web showing 1- and 2-year-olds trying to use a magazine like an iPad, you would think a 36-year-old man would know the difference. Gary Small, director of the Longevity Center this is its new name at the University of California, Los Angeles, has performed studies showing that the human brain adapts to technology in seven days, regardless of age.

I rarely read things on paper anymore. Magazines, news articles and books are all consumed on touch-screen devices like iPads, smartphones and Kindles. (The content is the same; the device is different.) Mr. Nass explained that my brain had been habituated to change the page by sliding my finger, no matter what I read. (This is also why I uselessly swipe ATM monitors or my laptop screen.) The same thing is happening with the taxi: my brain categorizes any car I am not driving as an Uber car.

All of these brain changes hasten the adoption rate for technologies, Mr. Nass said. It’s what happened with the telephone or the use of cruise control in cars. “You no longer drive a car,” he said. “You use a car.”

What is now happening with reading, we will soon experience with paying for things without cash, check or credit cards. And it will happen quickly.

The slowest part of the process may be convincing businesses to produce the changes. “This is where businesses have a difficult time adapting to what’s happening in society,” Mr. Nass said. It wasn’t publishers, for example, who introduced electronic reading devices. “People entered the publishing industry because they loved the feel and smell of books.”

But if they don’t recognize the speed of these changes, their brains are playing tricks on them, too.

Article source: http://bits.blogs.nytimes.com/2012/09/30/your-brain-on-e-books-and-smartphone-apps/?partner=rss&emc=rss

Media Decoder: Baton Rouge Newspaper Sees an Opportunity in New Orleans

It’s a Hail Mary pass for New Orleans newspaper lovers dreading the day that the city no longer has a daily paper. Starting on Monday, the first day that The Times-Picayune no longer prints every day, The Advocate from Baton Rouge will offer home delivery of a New Orleans edition.

Many of the bylines in the paper will be familiar to readers there. The Advocate hired seven people who had left The Times-Picayune to staff its New Orleans bureau. The publisher, David Manship, whose family has owned the paper since 1909, said that The Advocate had not had a reporter in New Orleans since its correspondent moved back to Baton Rouge, some 80 miles to the northwest, during Hurricane Katrina.

In May, The Times-Picayune announced that it would scale back print production to three days a week and shift its emphasis to its free Web site, Nola.com. Widespread layoffs followed, and some longtime Times-Picayune employees left voluntarily.

Mr. Manship said the new edition would feature coverage of basic news beats like city government. He will wait to see how it is received before deciding whether to expand into areas like arts coverage.

“If this thing goes like we hope it would, then we would add some additional staff,” he said.

But The Times-Picayune is not taking this expansion into its turf lightly. Ricky Mathews, the president of the NOLA Media Group who on Monday will take over as publisher of The Times-Picayune, said that the company had been planning for six months to build its presence in Baton Rouge. He said the paper already had three reporters there but would now add 16 staff members to its Baton Rouge bureau — 12 on the editorial side and four on the sales side.

He said he welcomed the competition.

“We believe that competition is good and what we’ve got to do is serve this region really well no matter who it is,” Mr. Mathews said.

In New Orleans, the newspaper war has already begun. Starting on Monday, The Advocate has handed out 11,000 to 18,000 free copies throughout the city each day. Mr. Manship said more than 6,000 households had signed up for home delivery.

Both papers hope the changes will help with their declining circulation. According to data tracked by the Audit Bureau of Circulations, The Times-Picayune’s circulation from Monday through Friday declined to 134,639 in March, from 142,700 the same time the year before. The Advocate’s circulation from Monday through Friday declined to 76,263 in March, compared with 82,695 the same time the year before.

Mr. Manship said that the success of the New Orleans edition depended heavily on advertisers in that city.

“If the advertising community in New Orleans doesn’t support it, then I would have to rethink the whole thing,” he said. “If I don’t make money on it, as nice a guy as I am, I can’t afford to throw money into a hole.”

Article source: http://mediadecoder.blogs.nytimes.com/2012/09/28/baton-rouge-newspaper-sees-an-opportunity-in-new-orleans/?partner=rss&emc=rss

Media Decoder Blog: Apple’s Plans for Internet Radio Run Up Against Big Music Publisher

Apple’s plans for an Internet radio service have hit a snag over the licensing of music controlled by Sony/ATV, which recently became the world’s biggest music publisher.

The two companies are at odds over what rate Apple should pay to stream Sony/ATV songs on its service, a money standoff typical of such negotiations.

But what is new is that Apple needs to negotiate at all. Typically, streaming services have obtained publishing rights from the major performing rights organizations, Ascap and BMI, which for decades have acted as clearinghouses on behalf of publishers and songwriters.

In recent years, some music companies have moved away from that model, figuring that the returns would be better if they handled licensing directly and opted out of the blanket rates set by those organizations.

When an investor group led by Sony bought EMI Music Publishing in June for $2.2 billion, Sony/ATV, a joint venture between Sony and the estate of Michael Jackson, took control of the world’s largest music publishing catalog with two million songs, including most of the Beatles songs as well as current hits by Lady Gaga and Taylor Swift.

EMI already withdrew its digital rights from Ascap, and Sony/ATV will follow suit with the rest of its catalog, effective Jan 1.

So just as Apple hopes to line up the licenses it needs to operate a streaming radio service, obtaining those licenses has suddenly become more complicated.

Martin N. Bandier, the chairman of Sony/ATV, said in an interview on Friday that the disagreement with Apple was simply an effort to obtain a higher royalty rate for his songwriters.

“This wasn’t us not wanting the service,” Mr. Bandier said. “We want the service. It’s like oxygen. We just want to be paid fairly, no different than the N.F.L. refs.”

Apple declined to comment. The news of Sony/ATV’s negotiating standoff with Apple was first reported by The New York Post.

Article source: http://mediadecoder.blogs.nytimes.com/2012/09/28/apples-plans-for-internet-radio-come-up-against-big-music-publisher/?partner=rss&emc=rss

You’re the Boss Blog: What’s Going On With My Bank?

Staying Alive

The struggles of a business trying to survive.

Wednesday was kind of a busy day, but late in the afternoon I tried to log in to my bank’s Web site to see what checks had posted (I bank with PNC). I couldn’t get in. Web sites don’t load now and then, and I didn’t give it much thought.

Yesterday morning I was discussing the payments we expected to receive this week with my two salesmen, Don and Nate. They are responsible for sending out invoices and keeping track of whether we have been paid with a cash management spreadsheet. Nate had received verbal confirmation of a sale of a conference table on Tuesday and added it to our production queue. We normally require a deposit in hand to do this, but you know how it goes — putting up a sales number is fun, and we were convinced the deal was a go. Why not do the client a favor and schedule manufacturing?

I asked Nate whether we had received a deposit from a new customer I’ll call Company T. This client had said it was  sending its deposit through an electronic funds transfer. Nate hadn’t heard whether the deposit, a little more than $9,000, had been sent and suggested I check the bank Web site to see whether the payment had posted. I tried again to log in, and again couldn’t connect. Hmmm. I tried refreshing several times, quitting and restarting the browser, and finally tried using two other browsers. Eventually PNC displayed a page that said the site was experiencing some technical issues and that I should try later. Again, other duties pressed and I set it aside.

At the end of Thursday, Don took a credit card from a client he had been working with — let’s call it Company S. We added the client to our list, but now I had a problem: Who gets the first available production time, Company T or Company S? They both wanted their tables as soon as possible, so the first one to commit money would get it. The call from Company S happened late on Thursday, just as I was walking out the door. I figured I would sort it out on Friday morning.

So when I came in on Friday, I tried again to log in, and this time nothing at all came up. This was starting to seem strange. As it happened, I needed some cash, so I hopped in my car to go to the local branch and see what was going on. When I got there, I was told that hackers had taken down the PNC Web site and that a number of major banks had been affected. The teller had no idea when it would be back up. At least I was able to see, on the bank’s own computers, that Company T’s transfer had gone through on Thursday.

Back at the office, I tried again to log in. No luck. I’ve continued to try throughout the day, and even as I wrote this post (early afternoon) I couldn’t get in. Now I’m a little worried. My bookkeeper won’t be able to reconcile our payments for the week, and I won’t be able to confirm that my cash management plans are still current. And beyond that: what’s up with PNC?

There hasn’t been much news about this incident (The Times’s Bits blog ran a post), but I was able to find out that a number of major banks had been affected. I have accounts with Chase and Wells Fargo, and I was able to get access to both of them, although it took a while to log in. PNC seems to have been hit harder or not been as nimble in response.

It’s disconcerting, to say the least, to find out how vulnerable my bank is to an outside attack. It’s been a disruption to my business that I didn’t expect, and the longer it goes on, the more worrisome it becomes.

I have planned my business around ready access to up-to-date financial information and rely on it to make sure I’m solvent. This particular week I have some cushion in my accounts, but I’ve lived through many periods where knowing whether $9,000 had arrived or not would make all the difference in the world — if I were trying to make payroll, for instance, or trying to make sure that critical materials shipped, or trying to avoid penalty payments on a credit card.

Is anyone else having trouble seeing their accounts right now?

Paul Downs founded Paul Downs Cabinetmakers in 1986. It is based outside Philadelphia.

Article source: http://boss.blogs.nytimes.com/2012/09/28/whats-going-on-with-my-bank/?partner=rss&emc=rss

DealBook: Ex-SAC Analyst Pleads Guilty in Insider Trading Conspiracy

Federal prosecutors say Jon Horvath was part of a seven-person conspiracy.Shannon Stapleton/ReutersFederal prosecutors say Jon Horvath was part of a seven-person conspiracy.

5:59 p.m. | Updated

The billionaire investor Steven A. Cohen and his hedge fund, SAC Capital Advisors, are again in the spotlight over insider trading crimes committed by former employees.

Jon Horvath, a onetime technology industry analyst at SAC, pleaded guilty on Friday to insider trading a month before his scheduled trial. He is the fourth former SAC employee to admit to illegal trading while employed at the fund, which manages $14 billion. SAC has been a focus of federal authorities since the government began its crackdown on insider trading at hedge funds five years ago.

The admission by Mr. Horvath, who entered his guilty plea in Federal District Court in Manhattan, increases the pressure on the co-defendants in his case: Anthony Chiasson, who was a co-founder of Level Global Investors, and Todd Newman, a portfolio manager at Diamondback Capital Management.

Federal prosecutors contend they were part of a seven-person conspiracy — a “circle of friends” — that earned about $62 million in illegal gains trading on secret tips from executives at publicly traded technology companies. Mr. Horvath, 42, is the fifth person to plead guilty and cooperate with the government. Several of the cooperators are expected to testify against Mr. Chiasson and Mr. Newman at their trial, which is set for Oct. 29.

Mr. Horvath’s guilty plea also puts the focus on another SAC trader. Michael Steinberg, who supervised Mr. Horvath at SAC, emerged as an unindicted co-conspirator in the case last week.

During his court appearance on Friday, Mr. Horvath said that he obtained confidential information about the technology companies Dell and Nvidia and then “provided the information to the portfolio manager I worked for and we executed the trades based on that information.” That portfolio manager is Mr. Steinberg, according to two people with direct knowledge of the matter who requested anonymity.

Mr. Steinberg, 40, is one of Mr. Cohen’s longtime lieutenants, having worked at SAC since 1997. Barry H. Berke, a lawyer representing Mr. Steinberg, declined to comment.

“Until today, Mr. Horvath maintained he had not violated the law and we gave him the benefit of the presumption of innocence,” said Jonathan Gasthalter, an SAC spokesman. “We are disappointed and angered to learn Mr. Horvath admittedly violated the law and SAC’s policies forbidding insider trading. We expect our employees to have integrity, play by the rules and follow the letter and spirit of the law.”

Steven R. Peikin, a lawyer for Mr. Horvath, declined to comment. John A. Nathanson, a lawyer for Mr. Newman, and Gregory Morvillo, a lawyer for Mr. Chiasson, also declined to comment.

Though he has not been charged in the case, Mr. Steinberg is now the fifth employee or former employee of SAC tied to insider trading while at the fund. Last year, two former SAC portfolio managers — Donald Longueuil and Noah Freeman — admitted to trading on illegal tips about publicly traded technology companies. Mr. Longueuil is serving a two-and-a-half-year jail term at a federal prison in Otisville, N.Y.; Mr. Freeman, who is cooperating with prosecutors, has yet to be sentenced.

Jonathan Hollander, a former SAC analyst, paid more than $220,000 to settle civil charges brought by the Securities and Exchange Commission accusing him of trading in his personal account on confidential information about the takeover of the Albertsons grocery store chain.

Several of Mr. Horvath’s co-conspirators also have deep SAC connections. Mr. Chiasson left SAC to co-found Level Global, which closed last year. Mr. Newman’s fund, Diamondback, was started by SAC alumni, including Mr. Cohen’s brother-in-law, Richard Schimel. Diamondback remains in business, and Mr. Schimel has not been implicated in the case.

Mr. Cohen and SAC have not been accused of wrongdoing. The fund, based in Stamford, Conn. with about 1,000 employees, has a 20-year track record that is one of the best investment records in the hedge fund industry. The fund is up about 8 percent year-to-date.

SAC has an unconventional structure. Unlike other hedge fund managers that make all the investment decisions, Mr. Cohen manages less than 10 percent of the fund’s money, distributing the rest to about 140 small teams. It is a high-pressure culture where Mr. Cohen will reward teams that perform well with increased allocations, while underperformers can get cut back or lose their jobs. The more money a team manages, the greater its potential earnings.

His success as a stock picker has made Mr. Cohen, 56, one of the richest people in the country, with a net worth of $8.8 billion, according to Forbes magazine. He has also minted a stable of multimillionaires; in profitable years, top traders at SAC have earned tens of millions of dollars.

Mr. Horvath, who now resides in San Francisco, faces a maximum sentence of 45 years in prison, though he is expected to receive a far more lenient sentence. He is a citizen of Sweden, and could face deportation after serving time.

The charges against Mr. Horvath are part of a sweeping investigation into insider trading at hedge funds by federal authorities in Manhattan. The crackdown has resulted in criminal cases against 72 people. With Friday’s guilty plea, 69 of those cases have resulted in convictions.


This post has been revised to reflect the following correction:

Correction: September 28, 2012

An earlier version of this article misspelled the surname of Steven A. Cohen’s brother-in-law. It is Richard Schimel, not Shimel.

Article source: http://dealbook.nytimes.com/2012/09/28/ex-sac-analyst-pleads-guilty-in-insider-trading-conspiracy/?partner=rss&emc=rss

Media Decoder Blog: Baton Rouge Newspaper Sees an Opportunity in New Orleans

It’s a Hail Mary pass for New Orleans newspaper lovers dreading the day that the city no longer has a daily paper. Starting on Monday, the first day that The Times-Picayune no longer prints every day, The Advocate from Baton Rouge will offer home delivery of a New Orleans edition.

Many of the bylines in the paper will be familiar to readers there. The Advocate hired seven people who had left The Times-Picayune to staff its New Orleans bureau. The publisher, David Manship, whose family has owned the paper since 1909, said that The Advocate had not had a reporter in New Orleans since its correspondent moved back to Baton Rouge, some 80 miles to the northwest, during Hurricane Katrina.

In May, The Times-Picayune announced that it would scale back print production to three days a week and shift its emphasis to its free Web site, Nola.com. Widespread layoffs followed, and some longtime Times-Picayune employees left voluntarily.

Mr. Manship said the new edition would feature coverage of basic news beats like city government. He will wait to see how it is received before deciding whether to expand into areas like arts coverage.

“If this thing goes like we hope it would, then we would add some additional staff,” he said.

But The Times-Picayune is not taking this expansion into its turf lightly. Ricky Mathews, the president of the NOLA Media Group who on Monday will take over as publisher of The Times-Picayune, said that the company had been planning for six months to build its presence in Baton Rouge. He said the paper already had three reporters there but would now add 16 staff members to its Baton Rouge bureau — 12 on the editorial side and four on the sales side.

He said he welcomed the competition.

“We believe that competition is good and what we’ve got to do is serve this region really well no matter who it is,” Mr. Mathews said.

In New Orleans, the newspaper war has already begun. Starting on Monday, The Advocate has handed out 11,000 to 18,000 free copies throughout the city each day. Mr. Manship said more than 6,000 households had signed up for home delivery.

Both papers hope the changes will help with their declining circulation. According to data tracked by the Audit Bureau of Circulations, The Times-Picayune’s circulation from Monday through Friday declined to 134,639 in March, from 142,700 the same time the year before. The Advocate’s circulation from Monday through Friday declined to 76,263 in March, compared with 82,695 the same time the year before.

Mr. Manship said that the success of the New Orleans edition depended heavily on advertisers in that city.

“If the advertising community in New Orleans doesn’t support it, then I would have to rethink the whole thing,” he said. “If I don’t make money on it, as nice a guy as I am, I can’t afford to throw money into a hole.”

Article source: http://mediadecoder.blogs.nytimes.com/2012/09/28/baton-rouge-newspaper-sees-an-opportunity-in-new-orleans/?partner=rss&emc=rss

Bucks Blog: Friday Reading: Teens Say Parents Text and Drive

September 28

Friday Reading: Teens Say Parents Text and Drive

Teens say parents text and drive, air passengers share views on chattering seatmates, veterans’ claims pile up and other consumer-focused news from The New York Times.

Article source: http://bucks.blogs.nytimes.com/2012/09/28/friday-reading-teens-say-parents-text-and-drive/?partner=rss&emc=rss

Bucks Blog: Upsides and Downsides of Family Loans

In this weekend’s Your Money column, I provide a primer on creating a family loan pool. The advantages here are many. There is potentially more money available if many family members contribute. Many people can participate in setting the rules and distribution of loans, so emotion is less likely to get in the way. And it may be easier to enforce those rules if an entire clan is standing behind the loan.

So what are the downsides of loaning money to a family member, and can a structure like the one I describe help avoid some of the potential pitfalls?

Article source: http://bucks.blogs.nytimes.com/2012/09/28/upsides-and-downsides-of-family-loans/?partner=rss&emc=rss

Bucks Blog: Giving With an Eye on the Impact

Paul Sullivan’s Wealth Matters column this week discusses philanthropists who not only want their donations to do good, they are looking for a way to measure the impact of their giving.

It’s called impact investing, and has become increasingly popular over the last decade or so.

While Paul is writing mainly about people have millions to give to charitable causes, people with far less in their bank accounts have also done impact investing. He mentions GiveWell, a nonprofit group that says most of its money comes from smaller donors.

Have you ever donated money with the idea of making a measurable impact? Tell us about your experience.

Article source: http://bucks.blogs.nytimes.com/2012/09/28/giving-with-an-eye-on-the-impact/?partner=rss&emc=rss

India Ink: Starbucks Makes Long-Awaited India Entry in South Mumbai

A Starbucks outlet in Cambridge city in Massachusetts, July 26, 2012.Charles Krupa/Associated PressA Starbucks outlet in Cambridge city in Massachusetts, July 26, 2012.

MUMBAI–Starbucks will open its debut store in India by the end of October, the company said Friday.

The American chain’s first shop here will be located in Mumbai’s iconic Horniman Circle neighborhood, in South Mumbai’s Fort district. The area is home to expensive shops, including a Hermes store, and numerous offices and bank headquarters as well as the Horniman Circle Gardens park, which hosts music and culture festivals.

“We’re extremely excited about the opportunity that this location presents to establish the Starbucks brand here in the Indian market,” John Culver, president of Starbucks China and Asia Pacific, said during a press conference in Mumbai on Friday. “The plans to open in the Indian market are right on track.”

The store will be located in the Elphinstone building, a heritage property owned by Tata Sons, part of the Tata Group conglomerate. Starbucks is partnering in India with Tata’s Global Beverages, which describes itself as “Asia’s largest coffee plantation company.”

In a first for the coffee chain, all the coffee sold in Starbucks stores across India will be locally sourced and roasted at a facility in India, executives said Friday.

Starbucks joins international fast food chains such as McDonalds, Taco Bell, and Dunkin Donuts, who have entered India because of a large demographic of young people with rising in income levels and international exposure. India has seen a rise in the coffee shop culture over the past few years as chains like Costa Coffee, The Coffee Bean and Tea Leaf have opened stores. The announcement comes at a time when the Indian government is pushing for more foreign investment in the country.

Starbucks had initially planned to open its first stores in India in mid-2011, but there was a delay in acquiring real estate, executives said. In January, the company announced a 50-50 partnership with Tata Global Beverages, and said it would invest $80 million in India and open 50 stores by the end of the year. Mr. Culver did not provide more detail about the company’s planned investment in India, but said that the business was “very well funded” and that the company was looking at the India market as long-term investment.

Avani Saglani Davda, 33, a Tata Group executive, will head the joint venture, the companies said Friday.

Like other international food chains entering India, Starbucks will alter its menu to suit Indian tastes. There will also be one unique dish available in each of the Starbucks stores in each city where it opens in India, executives said. “We are going to make a huge difference in the way that coffee houses are perceived in India,” said Ms. Davda.

Mr. Culver said the first store in New Delhi was planned for early next year, and that the company has hired and is currently training 60 people. “We’re going to be very thoughtful on how we grow, but at the same time we’re going to look at accelerating growth and capturing the opportunity that exists for us here in India,” he said.

India is the latest overseas market for the Seattle, Washington-based coffee chain. Starbucks has operated outside North America since 1996, when it opened in Tokyo, Japan, and today has more than 17,000 stores in 57 countries around the world. The company has been in mainland China for more than a decade, and now has more than 500 outlets there, but has courted controversy in some cases. A Starbucks outlet that opened in 2000 in Beijing’s nearly 600-year-old Forbidden City was shuttered seven years later, after protestors said it was denigrating the historical site. Still, Starbucks said in April that it expects China will be its second-largest market by 2014, and that it plans to have 1,500 stores across China by 2015.

In Europe, Starbucks has struggled in some countries, particularly France. The chain started a multimillion dollar makeover this year in Europe to lure patrons raised on café culture into its stores, adding edgy architecture, stages for poetry readings and chandeliers, as well as changing its coffee roast.

Article source: http://india.blogs.nytimes.com/2012/09/28/starbucks-makes-long-awaited-india-entry-in-south-mumbai/?partner=rss&emc=rss