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(Credit:
Intel)

The price of the new Classmate PCs put it in direct competition with the popular Eee PC from Asus, which is also a small, light laptop. From the beginning, Asus has said its Eee PC was intended for children, not necessarily for emerging countries, however. The larger screen, bigger hard drive, and higher price show Intel intends to go after mainstream Western markets now, too.

The latest versions will be available starting this month with a 9-inch screen and a 30GB hard drive. It will sell for between $300 and $500. Those prices put it just above the cost of the Classmate PC’s chief competition, the XO from the One Laptop Per Child program. The XO costs just under $200, and is chiefly targeted at students in developing nations.

Boasting bigger screens, bigger hard drives, and an integrated Webcam, updated versions of the Classmate PC were introduced at the Intel Developer Forum Thursday.

Blurred images of laptops that looked strikingly similar to the Classmate have been floating around the blogosphere over the last couple of weeks, popping up with different names, like the 2go PC. That’s just one version, which will be made by Computer Technology Link, or CTL.

The 7-inch Classmate PC in blue

Click here for more stories on IDF Shanghai.

Don’t miss CNET’s full review of the new 9-inch Classmate PC.

Intel creates the basic design for the Classmate PC, a category of computer the chipmaker is calling a NetBook, and regional manufacturers put their own spin on it.

I know there are workarounds for many of these DRM issues, but personally, I don’t want to hassle with my media or gadgets. I also want to know my content is mine and won’t disappear someday if Apple ever decides to stop issuing keys.

But it would be nice to know that I’ll be able to play my copy of the film V on video players other than those made by Apple. What worries me is that most iTunes content made by the big music labels, TV networks, and film studios is restricted by digital rights management software–just like at other Web stores, including
Zune’s Marketplace.

To do that, they want to rid the market of all the confusion about which DRM software works with which players. The company is providing few details on how their “interoperability” will work, but the general plan is to store a list of registered devices in digital lockers so people could gain access to play their media on numerous different devices.

I get suspicious any time competitors band together to set standards, and wonder if it’s ever good for competition. I don’t pretend to know whether this group is a Trojan horse designed to loosen Apple’s hold on digital media. All I know is when I heard the idea, it raised some doubts I’ve had lately about my iTunes content.

As I said then, Apple is unlikely to find itself in a similar situation for a long, long time, but who cay say what will happen in 5 years or 10? Aside from that, what happens if someone develops a whiz-bang media player that I like better than my iPhone 3G or someone comes up with a new home entertainment center and these devices can’t play my iTunes media?

But take another look at the members. Conspicuously missing is Apple, the biggest player in digital media. I’ve read other coverage about the DECE. Many of the tech bloggers see Apple competitors beating war drums outside iTunes’ gates. Untrue, according to DECE President Mitch Singer. He said the group has invited Apple to join. But he added that so far, the company hasn’t accepted.

(Credit:
James Martin/CNET News)

To some, the obvious answer is for content owners to scrub their videos of DRM. That isn’t going to happen anytime soon. Hollywood’s attitude is that while the music industry can spend hundreds of thousands of dollars on making an album, most feature films cost in the tens or hundreds of millions. Studio execs aren’t likely to leave their content unprotected with that kind of money at stake.

The only good reason I can think of is that it might benefit customers.

MSN Music and Yahoo Music both announced this year that they would no longer issue keys to unlock their copy protection software. This meant that those who bought songs from these sites faced the possibility of not being able to move their music to new machines or other devices. MSN eventually decided to continue issuing keys for three more years, while Yahoo issued refunds. But the lesson was clear. If your music or video is locked up in DRM , you’re dependent on whoever issues the keys.

I know that Apple joining this consortium is probably a long shot. The company is the overwhelming power in digital media and with the success of the iPhone 3G, its hold over digital media is likely to only increase. Why should Jobs invite competitors to its party?

But I have Microsoft and Yahoo to thank for illustrating just how little control a consumer has over content wrapped in DRM.

Recent events have made me wish that iTunes’ music and videos weren’t as restricted to Apple products. I love my
iPhone 3G. On the train ride to work, I’m a walking commercial, yapping on the phone or using it to watch AMC’s hit show Madmen.

news analysis The digital films and TV shows available to consumers now are shackled by numerous DRM schemes. A new consortium of entertainment, software, and retail companies wants to enable consumers to download any digital media from any Web store and enjoy it on any player.

Steve Jobs during the "Let's Rock" press gathering

I have Microsoft and Yahoo to thank for illustrating just how little control a consumer has over content wrapped in DRM.

Members include Warner Bros. Entertainment, Best Buy, Toshiba, Sony, Comcast, Intel, Cisco, Microsoft, NBC Universal, and Paramount Pictures. The group, called the Digital Entertainment Content Ecosystem (DECE), says its mission is to combat piracy by making the act of buying media so easy that people won’t be tempted to steal.

The money will be used to build the first phase of its ethanol plant in Soperton, Ga., which will use forestry waste as a feedstock. The plan is to complete a 20 million gallon-per-year plant next year that uses a gasification process.

GM last week said it has also invested in Mascoma, a company using a third approach: genetic manipulation of bacteria optimized for breaking down sugars and fermentation.

With a planned plant for 2009, Range Fuels will be one of the first providers in operation.

Range Fuels expanded its previously announced series B funding from $100 million to $166 million, according to reports. Private Equity Hub on Monday cited a regulatory filing, saying Morgan Stanley Capital Group joined the round. VentureBeat reported the expansion last week.

When it comes to next-generation biofuels, it’s a competition for both technology and capital.

There’s growing awareness of the problems associated with corn-based ethanol, which research shows does not significantly reduce greenhouse gas emissions compared to gasoline. The high demand for ethanol, driven by government mandates, is also being blamed as one reason for higher food prices.

Cellulosic ethanol from wood chips, grasses, or agriculture waste is considered a better alternative than corn, but production has not yet been done on a commercial scale.

Other companies on the hunt to make cellulosic ethanol on a large scale include Coskata, which signed a deal with General Motors and intends to have a pilot plant running next year. Coskata uses a combination of gasification and microbe processing to convert a range of carbon sources to ethanol.

Update at 2:17 p.m. PST, with comments from Microsoft on fate of Windows Marketplace.

Microsoft is doubling down on retail, with the launch of a second online store at the start of this year’s especially critical holiday shopping season.

The Microsoft Store, which opened for business Thursday, is designed to carry the largest and most up-to-date selection of the software giant’s product lines, such as Office, Windows,
Xbox, and
Zune.

Meanwhile, according to a Microsoft team blog, the Microsoft Store is also accessible to folks in Germany, the United Kingdom, and Korea. Plans are in the works to add Japan, France, Spain, and the Netherlands in the near future, as well as other countries.

Online retailer Amazon.com issued a cautious note regarding holiday sales when it reported its third-quarter financial results last month, while eBay lowered its fourth-quarter forecast.

As for Microsoft…in this current climate, two sites could have possibly been better than one.

“With the launch of the Microsoft Store, Windows Marketplace will shut down as an e-commerce site. Marketplace will transition from an e-commerce and referral site to a Web page that will refer customers to sites such as Microsoft Store,
Windows Vista Compatibility Center, and other appropriate destinations,” a Microsoft spokesman stated.

The one-stop shop will carry Microsoft hardware too.

Microsoft is launching its new site at a time when retailers are facing a major downturn as concerns over a recession weigh on the minds and wallets of consumers.

There are many similarities between the two sites, but with the launch of Microsoft Store, that will change.

Microsoft currently operates its Windows Marketplace e-commerce site, which it began testing in 2004.

Social-news site Digg.com, a perpetual target of acquisition rumors, is in “final negotiations” to sell itself to Google for $200 million, according to a TechCrunch report Tuesday that cited multiple sources.

Meanwhile, the Regular Geek blog welcomed the prospect of a takeover, arguing that it would give Digg some of the Google cachet:

By becoming a member of the Google family, they instantly get put on the mainstream fast-track. Google also gets a property that can compete with Yahoo Buzz. The biggest problem current Digg users may have is the flood of new users to the service. Digg is not overly welcoming so it would be interesting to see how that progresses.

“I would rather have Digg sold to Google than to Microsoft,” wrote one user who goes by the name neil1492. “Although it’s odd how Google is buying up almost everything on the Internet. What gives?”

“Normally our policy is to not comment about things like this,” Adelson wrote in March, “but this morning’s rumors about a bidding war involving Google and Microsoft have created such a stir we feel compelled to tell you all directly that they are completely inaccurate.” He continued: “Sorry to burst any drama theories, but they aren’t true. We remain focused on improving Digg and rolling out great features.”

Rumors back in March that the social news site might be purchased by Google, Microsoft, or a major media company had whipped a sizable number of Digg users into a panic. Digg CEO Jay Adelson, perhaps in an effort to assuage those fears of having a corporate owner, posted a blog that month that seemed to go a little above and beyond the call to deny the rumors.

Google has been in talks to bring Digg into the Google News group, but it could be a few weeks before the deal closes, if it closes, according to the report.

Will the rumor prove true this time around? Stay tuned.

Usually a “no comment” or the like is the response to questions about rumored acquisition negotiations. However, that was not the case in March–when the Digg takeover rumor mill was in full swing.

Representatives for Google and Digg did not immediately respond to requests for comment.

In contrast, the silence this time around is a bit curious. Digg users, meanwhile, have been more vocal with their opinions. In addition to how much compensation founder Kevin Rose and others in the Diggnation would receive was bandied about, some Digg users expressed relief that Google appears to be beating out Microsoft in this race.

That business model he referred to was based on selling music subscriptions to a niche market. Unlike Napster, or Yahoo’s now shuttered music store, eMusic sold music in the MP3 format, which allowed songs to play on any digital music player.

David Pakman, eMusic CEO

An important part of Pakman’s legacy at eMusic is that the company continues to exist. How many CEOs of digital music stores have been around for five years or longer? I can think of only one: Apple’s Steve Jobs.

Pakman has watched stores from MTV, Microsoft, Sony, Yahoo, and AOL come and go. “We outlasted almost every other digital entity in the space,” Pakman said. “We’ve proven the business model, growing the company by five times. I’ve had an amazing team.”

(Credit:
eMusic)

His relationship with eMusic remains a good one and he will have a role in helping to find a successor, he said.

Because the big music labels didn’t want their songs distributed without copy-protection software on them, they shunned eMusic for years. The service carved out a niche by selling music from unsigned artists or those with smaller labels. Pakman’s strategy has been vindicated now that the big recording companies have acknowledged erring in their MP3 strategy by embracing the format.

Pakman said he is departing after five years at eMusic to become a partner at a venture capital firm. He declined to specify which firm.

David Pakman, CEO of eMusic, is leaving the online music service at the end of the year, he said in an interview with CNET News on Monday.

New iPods. The super-thin Nano looks amazingly cool and will probably do well this holiday. And a new 120GB Classic for $249 matches what Microsoft announced for the
Zune on Monday. Only it’s an
iPod, which means it looks way cooler, has a scroll wheel, is far more fashionable…you know the drill. They’ve put the cover flow and accelerometer from the
iPhone in, meaning the Nano will know when you turn it on its side. You can shake it up and it’ll shuffle songs. New bright colors, and more recyclable than ever before. (Wow–is it smart to introduce a new product by talking about how you’ll have to throw it away someday?) This is all fine and dandy if you don’t have an MP3 player already, but I’m not seeing any exciting new features that will make existing iPod owners run out and upgrade.

Genius playlists. Select a song, click this feature, and you’ll get a playlist from your collection of similar songs, plus iTunes recommendations. This sounds like a promising way to solve the fatigue that a lot of users develop with their own collections after a few months, as well as the jarring transitions that sometimes pop up during a random shuffle session. Of course, so much depends on how well it works–will the algorithm adhere toward the same artists and genres? Will it be reliant on metadata such as composer and year, or can it analyze actual audio characteristics like tempo and key? The latter would be amazingly cool. I’ll check it out later Tuesday and post more details then.

Bright colors and a nice oval shape characterize the new line of iPod Nanos.

(Credit:
James Martin/CNET Networks)

That’s it? OK, that’s it.

The iPod Touch is also getting a makeover, super-thin with an integrated speaker, has the App Store (games!) and Genius and Nike+ features built-in. This is really becoming a hybrid entertainment device–more like a PSP than a mere MP3 player. Still, I’ve always thought this product fits into a weird niche between the iPhone and old-fashioned iPods or other MP3 players. I guess it’s for people who want cutting-edge technology (touch screen!) but aren’t ready to part with their current phone. BlackBerry fans, maybe. They seem to be targeting it at gamers, but with an entry price of $229 I’m not sure that will work–that’s $100 more than the cheapest Nintendo DS Lite, about $60 more than the cheapest Sony PSP, and–heck–$20 more than an Xbox 360 Arcade. Then again, it is the market-leading MP3 player as well as a game device.

That said, Apple’s probably done enough with the new designs to keep the iPod Nano flying off store shelves this holiday. And Zune’s got a bad reputation to overcome.

Harrumph. I’m happy to hammer Microsoft when it screws up, as it did with some earlier Zunes, but I have to say that this week’s Zune announcement was a lot more exciting than the iPod announcement. The hardware’s nowhere near as cool–Apple’s a great hardware and design company–but I’ll be darned if the new Zunes don’t do more when it comes to music. They’re not all-in-one devices like the Touch is becoming, and Microsoft certainly doesn’t have anything that can touch the iPhone, but on a pure MP3 player basis, the Zune’s finally looking competitive.

I’m following Tuesday morning’s Apple event, and while HD TV and NBC’s return to iTunes are nice, this blog’s about music. So here are some instant reactions to the music-related news: