Video Games Become a Taxing Subject

Did you know that Louisiana offers a 20 percent tax credit against expenditures for video game developers and certain other interactive digital media companies that are based there? This digital media tax credit is not unique to Louisiana. In 2005, Atlanta began a program of providing tax incentives to digital media, and a number of other places have begun to attract development using tax incentives as well.

Test Data? Really?

Are you using real customer data for testing? In a recent survey, well over 60 percent of IT professionals use live customer data for application testing and for software development. Guess how many IT professionals outsource application testing (and share live data with the testing company)—about 50 percent. Worried about sensitive data? Compliance with data breach statutes? Privacy concerns? Is this a potential gap in the security wall many companies build around their networks? You bet. Could it be a big compliance, legal and regulatory problem? Bigger bet. While live customer data is obviously the most representative for testing, it’s also the most risky. What can you do? Use fake data. Anonymize or sanitize real data. Use encryption. Limit access and strengthen contract, monitoring and audit controls. We know privacy and security, regulation and compliance. Call us.

Microsoft Bidding for Yahoo!

It’s all about the advertising. Get it? In 2007, researchers estimate that there were well more than 2 billion views of progressive download or streaming media every month! That doesn’t even include user-generated content. Translated into dollars, that means that revenue from advertising associated with streaming video and audio grew to about $1.37 billion—just under 40 percent growth from the year before. Still not convinced, almost half a billion dollars were generated from pre-roll advertising—the ads shown before a streamed television program. Don’t expect these numbers to start falling anytime soon. Even if the economy slows in 2008, the relatively cost-effective ability to create, distribute and measure digital advertising across a variety of media platforms and formats, wired and wireless, will likely not slow down. Go Giants! Go Gadgets! Go Widgets!

Useless But Compelling Facts – December 2007 Answer

Shhhhh! We can’t announce that Thomas Grace at AT&T correctly answered the November 2007 question. He knew the interesting film coincidence in which Mai Ling, who played Mei-Lei, a stewardess who happened to be a spy on a plane in the 1964 James Bond motion picture “Goldfinger,” also played a stewardess and again happened to be a spy on a plane, in the 1969 movie, “The Chairman,” starring Gregory Peck and Anne Heywood.

Red Faced or Saving Face. Facebook Faces the Music!

Facebook has built a highly popular business, but it turns out making that popularity profitable appears to depend, in large measure, on advertising. Sound familiar? So Facebook announced a new program, Beacon, an online tracking tool. No, online tracking certainly isn’t new: companies track where your browser has been and your online activity, and routinely serve up ads based on “preferences”—where you have been, what you look for, and what you purchase. But that takes place behind the scenes—you just see the results: relevant, targeted advertising.

Facebook has taken online tracking one step farther: Beacon sends messages telling your Facebook buddies what you are buying and, in some cases, what you are doing. So don’t plan that surprise trip to Puerto Rico just yet—buying a ticket might ruin the surprise. In fact, don’t come back from the trip and rate the hotel—your friends who weren’t invited will know you’ve been there.

Facebook faced criticism last year when its “News Feed” function came under fire. Media and industry pundits and Facebook executives note often schizophrenic and hypocritical marketplace attitudes. Indeed, there is some irony to be considered when the generation that posts profiles, adding everything from drinking, sexual preferences, and religious affiliations, to family videos, in blatantly public web-spaces, complains about privacy. But consumers still distinguish between their choice to share, and allowing a host to decide what, when, where and how to share information about them, or whether to characterize activities as some form of an “endorsement without consent” to their friends.

As usual, privacy and consumer advocacy groups were poised to file complaints with the FTC, right on the heels of investigations already launched by several Attorneys General into Facebook’s privacy practices. The New York Attorney General has issued a subpoena to Facebook for copies of complaints about “inappropriate solicitation of underage users and inappropriate content on the site.” As innovators have learned, success shines a spotlight that creates a glow—and discloses warts; let’s see if they can keep Facebook blemish-free.