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Businesses

Why Apple Is So Sticky 595

Hugh Pickens writes "'Sticky,' in the social sciences and particularly economics, describes a situation in which a variable is resistant to change. For websites or products it usually means that visitors or customers keep coming back for more. Now Fortune Magazine reports on an analysis by Deutsche Bank's Chris Whitmore on what makes the (iTunes-based) iPhone-iPod-iPad platform so sticky and why it's going to get harder, not easier, for Apple users to switch, no matter what Google and the rest of Apple's competitors have up their sleeves. Whitmore says the investment Apple's customers have made in content for those devices in terms of apps, videos, and music purchased at the iTunes Store creates Apple's 'stickiness.' Apple has an installed base today of about 150 million iTunes-dependent devices that could grow to more than 200 million by the end of 2011. Whitmore comes up with a cumulative investment in those devices of about $15 billion today, growing to $25 billion by the end of next year. 'This averages to ~$100 of content for each installed device,' Whitmore writes, 'suggesting switching costs are relatively high (not to mention the time required to port). When Apple's best-in-class user experience is combined with these growing switching costs, the resulting customer loyalty is unparalleled.'"
Censorship

Bangladesh Blocks Facebook Over Muhammad Cartoons 562

lbalbalba writes with a BBC story about Bangladesh following Pakistan in censoring Facebook. "Bangladesh has blocked access to Facebook after satirical images of the prophet Muhammad and the country's leaders were uploaded. One man has been arrested and charged with 'spreading malice and insulting the country's leaders' with the images. Officials said the ban was temporary and access to the site would be restored once the images were removed. It comes after Pakistan invoked a similar ban over 'blasphemous content.' ... Thousands of people joined anti-Facebook protests in Bangladesh on Friday demanding the site be blocked over the contest. A telecomm regulator there said, "Facebook will be re-opened once we erase the pages that contain the obnoxious images." And how do they propose to do that?
Censorship

German Publishers Want Censorship Talks With Apple 197

An anonymous reader writes "The association of German magazine publishers has sent a letter to Steve Jobs (Google translation; German original here) demanding talks about censorship by Apple. The move draws attention to growing concerns about freedom of the press when a single unelected commercial entity has worldwide control over what gets published for the iPhone and, especially, the iPad." While the magazine publishers may rightly be concerned about private control of a platform that many of them are counting on for their long-term salvation, the German state is at the very least ambivalent about the subject of censorship. This is the country that has banned Wikileaks, sought a ban on violent games, and voted to censor child porn (only to have the president kill the ban as unconstituitonal).
The Almighty Buck

IRS Wants a Cut of Sales On eBay and Craigslist 517

Ponca City, We love you writes "In 2009, $60 billion worth of items were sold on eBay, meaning 'extra' money for many sellers, whose activities may provide them with taxable income. Now the Washington Post reports that beginning next year, a new law will require 'the gross amount of payment card and third-party network transactions to be reported annually to participating merchants and the IRS.' Also, for 2011 tax returns, 'taxpayers who annually sell more than $20,000 worth of goods and have more than 200 electronic transactions' will receive a new IRS form, known as 1099-K, for reporting the proceeds. The new tax issues shouldn't be a concern for people who sell just a few small items online for less than they paid for them, because as the IRS points out, income from auctions that resemble a garage or yard sale 'generally' isn't required to be reported. But if an online garage sale turns into a business with recurring sales and purchases of items for resale, it may be considered an online auction business. 'Generally, transactions resulting in a gain are reportable, regardless of whether the taxpayer is conducting a business,' says Gil Charney, principal tax researcher at The Tax Institute at H&R Block. The real reason behind the law is simple: Research shows taxpayers do a much better job of reporting taxable income when they know the IRS is receiving information about their transactions."

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