Archive for February 20th, 2008

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Those scamps at Vote for the Worst continue to wreak havoc on Fox’s “American Idol.” This season the snarky Web site is encouraging its fans to support the dreadful Danny Noriega, a contestant who makes the hapless Sanjaya Malakar from last season seem talented.

That groaning sound you heard last night was the late Elvis Presley voicing his disapproval of Noriega’s dreadful performance of “Jailhouse Rock” on yesterday’s telecast. Even stranger was the fact that Noriega picked the song, which debuted in 1957, for 60’s night. Vote for the Worst urges its readers to “vote as much as you can for the fierce and fabulous Danny Noriega. Simon [Cowell] obviously hated him the most, which is why we love him the most.”

Noriega, like Malakar, erodes fans’ confidence in Idol, which should alarm Fox’s parent News Corp (NYSE: NWS). There are some other weird developments that’ll tax viewers’ patience even further. Idol contestant Carly Smithson was signed to MCA records when judge Randy Jackson worked there. Allowing contestants to participate who have had record deals dilutes the spirit of the contest.

Also, was it a coincidence that the last contestant on the show last night was Michael Johns, the most talented of the male contestant? I would say no. The Aussie native is my choice to win the competition and no doubt is a favorite of his countryman News Corp CEO Rupert Murdoch. His performance of The Doors’ classic “Light My Fire” was one of the ideal in the history of the program.

Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

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Whoever invited the Wii Fit, a virtual gym that can be used in conjunction with the gaming console, deserves a medal. Heck, he or she deserves a raise because it’s going to be a massive seller for Nintendo Co. (OTC: NTDOY).

This game is perfect for someone like me who doesn’t exercise as much as he should, which in my case means hardly ever. The Wii Fit, which will be available Might 19, also will be useful for parents trying to get their kids to exercise more. “Wii Fit is all about breaking the definition of video-gaming, about something that keeps you and your family fit and engaged,” said Reggie Fils-Aime, president of Nintendo’s U.S. division, in an interview with The Wall Street Journal.

The company has sold 1.4 million copies of Wii Fit since it went on sale in Japan in December, according to the paper, which stated the game will sell for less than $100 in the U.S. Already the media is gushing over the product. Here’s a sample from theU.K.’s Guardian:

The games console, which plugs into any Television, comes with a balance board, about the size of a pair of water closet scales. Once stepped on, this board calculates a player’s bodymass index based on their weight, height and age. The player then carries out a few basic balance exercises on the board to gauge their rough level of fitness.

Using a number of on-screen games and a digitized fitness teacher, the Wii Fit then takes the player through over 40 different muscle, stretching, aerobic and balance exercises from downhill skiing and football to yoga and press-ups. Players can set their own targets, whether to reduce their body mass index or improve their flexibility and agility.

The only question I how the digital fitness instructor will motivate people to “feel the burn” when they start to slack off.

Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

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Microsoft Corp. (NASDAQ: MSFT) will start a proxy fight for Yahoo! Inc. (NASDAQ: YHOO) “unless Yahoo reverses course and enters into talks’ regarding its $44.6 billion unsolicited offer,” according to The New York TimesDealBook blog. I’ll believe it when I see it.

First of all, proxy battles are a gigantic pain in the butt. The bigger the deal, the bigger the hassles. There are lawyers, proxy solicitation firms and deal PR firms to pay. M&A reporters at the major media outlets have to be wooed. It takes forever.

Yahoo’s board probably won’t meet until June. Plenty of things can happen between now and then. Probably, the only reason why Microsoft is even considering a proxy fight is because Yahoo does not have a staggered board, meaning all of its directors are up for renomination this year.

Investors need to remember that the media adores to hype potential battles like proxy battles even if the chances of them actually happen are quite remote.

Freelance writer Jonathan Berr edits the blog Ketchup and Eggs.

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For some mobile subscribers, it can be scary to look at a monthly bill. But things are changing and now Verizon Wireless (NYSE: VZ) has launched a new flat-fee plan for unlimited domestic calls. The fees range from $99.99 to $139.99 per month.

True, this may pinch revenues in terms of forgoing lucrative overage charges. But then again, Verizon must deal with the competitive environment.

To get a perspective on things, I interviewed Allan Keiter, who operates MyRatePlan. According to him:

“It was inevitable that this would eventually happen, as per minute costs in rate plans have continued to drop and regional carriers like MetroPCS and Cricket have had some success with an unlimited product.

“Usually what happens in wireless is that by the time new products are announced, the customer benefit isn’t as great as it might first seem. For example, a Verizon customer can this day get 2,000 minutes for that same $99.99. While unlimited is obviously greater than 2,000, that current plan includes unlimited nights and weekends, as well as free calling to other Verizon customers (some 60 million or more). So, at the end of the day, for existing Verizon customers, this plan only benefits those who use more than 2,000 minutes during peak time (6 am to 9 pm weekdays) and calling people who aren’t other Verizon Wireless customers. My guess is that’s not a huge share of their customer base, although it could offer savings to those who would trade down from the $149.99 or $199.99 plans.

“The real benefit for Verizon is on the marketing side. They are the first massive carrier to roll this out nationally, so could be quite attractive to heavy users currently with other carriers. This could also be of interest to people whose usage is heavy and bounces around a lot. People like knowing what their bills will be, and this eliminates the overage risk for voice calling.”

Tom Taulli is the author of various books, including The Complete M&A Handbook and The Edgar Online Guide to Decoding Financial Statements.

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