Digital Media

As the CEO of Adobe Systems, Bruce Chizen was credited with turning that company into a software powerhouse. Now Chizen will bring his experience to a new role as a venture partner for Voyager Capital, a top venture capital firm.

Bruce Chizen

(Credit: Adobe Systems)

Voyager Capital invests mostly in start-ups involved with early-stage digital media, software and servers, wireless, and Web infrastructure. Previously a member of Voyager's advisory board, Chizen will expand his role by working with budding technology entrepreneurs in the areas of digital media and software.

"Bruce possesses a rare combination of valuable market insight and senior business experience," said Bill McAleer, managing director at Voyager Capital. "His strong industry reputation, connections, and background in digital media and software will benefit our ventures."

Chizen made his mark in the industry as CEO of Adobe. After six years with the company, he took over the CEO reins from co-founder John Warnock in late 2000.

During his tenure, Chizen was the driving force behind Adobe's expansion into new markets. He oversaw the growth of the company's customer base beyond the graphic arts niche into the enterprise and general consumer arenas. He helped transform Adobe from a software vendor into a platform company, branching out onto the Web and open source, among other areas.

With Chizen at the helm, Adobe made some key deals, notably the acquisition of Macromedia in 2005.

After having tripled Adobe's revenues as CEO, Chizen exited the company in late 2007, placing it in the hands of then president and now CEO Shantanu Narayen. In an interview with CNET News, Chizen spoke about his decision to leave Adobe at the time.

Prior to his role at Adobe, Chizen served in several executive positions at Claris. He also worked in the merchandising group at Mattel Electronics and as a regional sales director at Microsoft.

(Credit: Dong Ngo/CNET)

It's probably time you said goodbye to your PowerPC-based Mac.

Adobe confirmed Tuesday that future versions of its Creative Suite will run only on Intel-based Mac computers. There will be no support offered for PowerPC-based systems.

The company's decision follows Apple's announcement in June that it was discontinuing support for the PowerPC in its new operating systems, starting beginning with Mac OS X 10.6 (Snow Leopard). With Apple's future development focused on Intel Macs, Adobe is aligning its resources accordingly.

According to Adobe, existing customers who own Creative Suite 3 and Creative Suite 4 will still be able to use the software on either a PowerPC-based Mac or an Intel-based Mac without having to make any changes. However, Adobe will provide support for these two suites only to address critical issues that may arise.

Creative Suite is Adobe System's collection of well-known industry-standard graphic design, video editing, and Web development applications. These applications include Photoshop, Illustrator, InDesign, Acrobat, Flash, and many others.

While Snow Leopard has not been released yet, and the new version of the Creative Suite hasn't been announced, either, Adobe decided to announce these changes now so its customers will have time to plan their migration strategy accordingly. This means you should go get yourself an Intel-based Mac if you haven't done so already.

For more information on the discontinuation of support, check out Adobe's FAQ.

Adobe Systems announced lower second-quarter earnings and sales on Tuesday.

Income dropped 41 percent to $126.1 million, or 24 cents per share, from $214.9 million, or 40 cents per share, a year ago. Sales fell 21 percent to $704.7 million from $886.9 million in 2008's second quarter.

Results were actually in line with or slightly above estimates. Analysts surveyed by Thomson Reuters expected even lower sales of $694.8 million. Excluding the cost of special items, second-quarter earnings hit 35 cents a share, meeting analysts' expectations.

Adobe CEO Shantanu Narayen was upbeat about the quarterly performance.

"We are pleased with the solid profit margin and earnings results we were able to deliver in Q2," said Narayen. "We continue to invest in our key business initiatives which will drive long-term revenue growth once the economy improves."

For the third quarter, Adobe is forecasting sales of $665 million to $715 million with earnings of 20 cents to 27 cents per share, or 30 cents to 37 cents a share excluding special items.

Adobe typically counts on strong revenue from its Creative Suite line of products. But sales of the newest CS4 edition have been weak. The product was released late last year just as the recession was kicking into high gear.

Adobe has been moving to improve performance by cutting costs and introducing new products. In December the company said it would trim about 600 jobs. This week Adobe announced it's bringing its new business-class Acrobat.com PDF conversion site out of beta.

As part of the Streaming Media East conference in New York, Adobe has unveiled "Strobe," the "open framework" for its Flash video player that the company first announced last month. It's expected to be available in the third quarter of this year.

Since you were probably wondering: No, Adobe is not tweaking the pronunciation of "Strobe" so that it rhymes. Thank goodness.

But here's what it is: Strobe is a product and architecture for accompanying plug-ins based on Adobe's Flash technology that lets a company build a custom video player more easily, should it want to host online videos in-house rather than relying on YouTube or its ilk.

While Adobe's ActionScript language is "very flexible," explained Jennifer Taylor, director of product management for Flash distribution, "everybody's sort of had to recreate that from scratch, and as a result it's taken people longer than they've wanted to to to get their video players up to get their video online."

The meat of Tuesday's announcement at Streaming Media East is that a host of big new partners are on board, from content delivery networks to analytics firms. The full list of supporters is Adap.tv, Akamai, Blip.tv, Brightcove, CDNetworks, Digital Smiths, Eyewonder, GlanceGuide, Grab Media, Incited Media, iStreamplanet, KickApps, Level3, Limelight Networks, Multicast, Nielsen, Omniture, Panache, PointRoll, ScanScout, Thumbplay, Visible Measures, and YuMe.

Strobe is "taking the mystery out of creating video players, and also streamlining and simplifying that process, so people can do it much faster than they could before," Taylor said. She added that ComScore statistics have said that Flash is used to serve up 80 percent of all online videos.

Adobe is calling Strobe an "open framework" and is inviting developers to contribute, but has not finalized the way that it will be licensed. There may, for example, be an open source version that developers are invited to try out, test, and build on, but the version that will be downloadable at Adobe.com may haev a different license. This, Adobe representatives said in an e-mail to CNET News, would "take all the best pieces of the open source code, bundled with plug-ins," but that it would be protected to "prevent modifications, breaking plug-ins and prevent competing branding."

Company representatives followed up later on Tuesday to clarify that "the intent is to work with a license that allows for liberal use and innovation."

But regardless of license, the Strobe framework will be free, and Adobe does not have plans to charge for it. "Our intent is to not monetize Strobe directly," Taylor said. "Obviously, we anticipate and hope that Strobe will help accelerate the adoption of Flash video, and the rising tide helps all boats: it's going to help our partners and those who provide plug-ins for the framework."

This post was updated at 1:43 p.m. PT to clarify the use of open source technology in Strobe.

As more entertainment content makes it way online, Comcast is looking for new ways to remain relevant to its subscribers.

Specifically, the cable giant is launching a bunch of new initiatives to bring more interactive content to its services and keep its subscribers hooked on cable. First on the list is the company's proposed free online video-on-demand service. The service, which will be offered as part of Comcast's Fancast video site, has been discussed publicly for the past couple of months. But the company has kept the details, such as when it will launch and what content will be offered, under wraps.

What is known is that Comcast expects to offer the service free of charge to its existing cable TV customers. In a recent interview with PC World, Karin Gilford, the Comcast Interactive executive in charge of the cable provider's Fancast video site, said with a user name and password, subscribers will be able to access any standard or premium cable content that their cable subscription entitles them to watch.

The service will let users watch TV on their laptops or computers, and eventually it might even be available on cell phones. What will make the service different from other online video sites, such as Hulu.com or TV.com (which is owned by CBS, publisher of CNET News), is that it will feature premium cable content from sources like HBO, ESPN, and CNN. This content has largely been off-limits to free online video aggregators.

But because Fancast online video-on-demand viewers must subscribe to cable TV, the new service won't act as cable replacement. In other words, it's simply an extension of Comcast's existing cable service. This is an important element of the service, because it ensures that Comcast doesn't cannibalize its own lucrative paid TV business.

Apps, to boot
In addition to online video, Comcast is also dipping its toe into online application waters. The company announced earlier this week that it is working with Adobe Systems to embed its Flash technology on set-top boxes used by its TV subscribers. Sree Kotay, senior vice president and chief software architect at Comcast, recently told the Web site Contentinople that the company plans to enable widgets and other Flash-based applications on its set-top box.

Kotay said he sees Flash as a software platform that could allow the company to quickly add new applications to the set-top box. And he said that these applications could be built by Comcast or they could also be built by third party developers. The company was showing off the new set-top box at the National Association of Broadcasters conference in Las Vegas this week.

Kotay hinted at potentially creating an application storefront akin to Apple's iPhone App Store. He said that the App Store was a good example of how companies can maintain control over applications to ensure quality and also easily distribute them to consumers.

But he stopped short of indicating whether Comcast would provide a monetization mechanism through its own customer relationship. This would be easy enough to do, considering that Comcast has a direct billing relationship with consumers and could easily provide one-click purchasing. But Kotay said it was still too early to discuss business models.

For now, Comcast is still in the exploratory phases of how it can keep pace with the online world. It will be interesting to see if subscribers use the Fancast video on demand site and what kinds of applications and widgets will be developed for the TV.

A mock-up of what Adobe Flash for TVs would look like.

(Credit: Adobe)

From the PC to the TV, Adobe Systems wants to bring rich Web animation and video into consumers' living rooms.

The company will on Monday announce its latest version of its Flash multimedia platform that will essentially put its technology in Internet connected TVs, set-top boxes, Blu-ray players, and other digital home devices. The main purpose of the TV and consumer electronics optimized Flash is to allow viewers to see high-definition video, interactive applications and new user interfaces right on their TVs.

As part of the announcement, the company revealed a number of partners that plan to use the technology, including, Intel, Comcast, Disney Interactive, Netflix, Atlantic Records, and the New York Times Company.

Until now, Adobe's Flash Player has mainly been used on computers to make animation and video from Web sites like YouTube available in a Web browser. And the company has been very successful in this market. About 80 percent of online videos worldwide are viewed using Adobe Flash technology, according to comScore.

The company has also adapted its technology to create a mobile version of Flash that is used on smartphones. The mobile version lets people watch Flash-enabled video on the go. Now Adobe is turning its attention to the living room and big screen HD TVs. This means that people could have full access to the entire YouTube library of video on their TVs instead of a subset that has been specially encoded for TV viewing.

"There are some products and services that offer a subset of online video for TVs," said Anup Murarka, director of technology strategy and partner development for Adobe's Flash Platform Business Unit. "But they don't provide all the content. For example, a lot of devices play back YouTube content. But they can't offer all the videos on YouTube."

Developers will also be able to create "widgets" for TVs to help bring Web content onto the TV screen. Widgets are specially designed Web applications that can easily be added to consumer electronics devices.

Yahoo is also offering widget technology for TVs, which it co-developed with Intel. The Yahoo Widget Channel provides access to Flickr, Yahoo News, Yahoo Weather and Yahoo Finance, USA Today, YouTube, eBay and Showtime Networks, among others. Motorola, Samsung, and Toshiba are all planning to add Yahoo Widgets on some of their new TVs.

Murarka said that Yahoo is not really competing with Adobe. He pointed out that both Adobe and Yahoo are working with Intel, and he said the Flash technology was actually complimentary to what Yahoo is doing with its Widget Channel.

"Yahoo supports Flash on desktops and our hope is that they will support Flash in TVs as well," he said. "We see Flash as being valuable in a number of new frame works."

Murarka wouldn't say which consumer electronics makers plan to use the new version of Flash, but the technology is available to device makers and application developers now. And Flash-enabled TVs and set-tops should be out later this year.

Some subscribers of Major League Baseball's streaming-video service are complaining that the new player, powered by Adobe Flash, isn't ready for the big leagues.

After receiving plenty of favorable reviews from technology blogs, some MLB.com subscribers have complained about stuttering and stalling video while watching on Monday, opening day for baseball. Some of the same problems continued on Tuesday, according to reports. Subscribers of MLB.com's GameDay Audio service also reported that archived games haven't been accessible since Monday.

The irony is that Major League Baseball Advanced Media (MLBAM), the unit that oversees the streaming service, discontinued using Microsoft's Silverlight player because of chronic glitches and disagreements over how the player should function, CNET reported on Monday. In the story, Bob Bowman, CEO of MLBAM declined to go into detail about why he dropped Microsoft but said baseball is engaged in an ongoing dispute with Microsoft "because of the significant problems" the league encountered last year.

"I wonder how long before Adobe gets the boot," Timothy Thorson told CNET. Thorson said he is a longtime MLB.com subscriber and listens to the games from his home in Germany, where he works as a pianist and translator. "Baseball is one of the things I miss most about the U.S. There are others like me who get up in the morning and want to listen to the game and now we can't."

The glitches affected less than 1 percent of the company's 500,000 subscribers and were not caused by Adobe's player, said Matt Gould, MLBAM's spokesman. Gould added that as of Wednesday evening, eight games were in progress and three were completed and there were no complaints. "We didn't bat 1.000 on opening day, but there are 2,200 games remaining in the major league season. We look forward to providing the most engaging high-def experience for our subscribers."

Adobe said in a statement: "We've been in regular contact with MLB.com, and have heard nothing but praise about the Flash platform."

Gould said the malfunctions were relatively minor and were far fewer and less severe than last season, when many subscribers were unable to even log in. That was when MLB.com was using Silverlight. Gould said that delivering true high-definition streaming video is a complex task and baseball is only now working out the kinks because it couldn't fully test the video feeds from major league ballparks until opening day. Teams don't play in their home stadiums during spring training.

"We've had very small window to do end-to-end testing," Gould said.

As I discussed the situation with Gould on the phone, Charlie Wagner, a CNET photographer overheard me. He told me he was prevented from seeing a ninth-inning rally by his favorite team, the Minnesota Twins, Tuesday night when his MLB.com video player broke down.

"The video froze on me in the ninth inning," said Wagner, who has subscribed to the service for three years. "I couldn't see the finish until ESPN came on... I was mad."

Despite the problems, he Wagner said he thinks the picture quality is better.

As for Silverlight, the company declined to comment but on a blog post, Steve Sklepowich, a Microsoft executive, did challenge one of Bowman's assertions about Adobe. Bowman suggested that Adobe was a better fit for baseball because of Flash's wide consumer adoption.

"While Flash 9 may have high penetration," Sklepowich wrote, "the Swarmcast NexDef plug-in that helps power MLB's HD experience has virtually no adoption. Ubiquity here is a red herring. What customers really want are high quality solutions. Silverlight has been doing that since its inception and already supports the ability to deliver true HD using IIS Smooth Streaming with no additional plug-in required."

Perhaps Bowman described the situation best this week when he said that streaming video on the Web isn't as trustworthy yet as television. "You turn on the TV and it just works," he said. "(Internet video) still has a ways to go."

Screenshot from MLB.com's new Flash player.

(Credit: MLB.com)

The thwacking sounds of bats striking balls will once again fill stadiums, as Monday is opening day for Major League Baseball. This year, Microsoft will watch from the sidelines.

MLB.com no longer uses Microsoft's Silverlight to stream games to its 500,000 subscribers. This season fans will watch live and on-demand video via Adobe's Flash player.

In November, Major League Baseball Advanced Media, the league's tech unit, announced it would discontinue using Silverlight, the browser plug-in that MLBAM had signed up for barely a year earlier. The decision was not insignificant. MLBAM not only runs the profitable MLB.com streaming-video service, the Web's most successful subscription service, but the group is also influential with other leagues and sporting events. MLBAM handles much of the back-end operations for CBS' Webcasts of the NCAA Basketball Tournament and this year will do the encoding for the 2009 Masters golf tournament (CBS is the parent company CNET News).

Baseball never detailed the reasons for dropping Silverlight but sources close to the negotiations between the league and Microsoft said it was a series of glitches and conflicts between the companies that led to the split.

First, baseball wanted Microsoft to make it possible for users to download Silverlight without having to possess administrative rights. When people are at work, it's often the company that possesses those rights and employees would need authorization to download the player. That frustrated plenty of MLB.com subscribers, according to the sources.

The other major issue was that baseball considered Silverlight too unstable. There were some high-profile glitches, including last year's opening day, which saw many MLB.com subscribers struggling to log in and others who were unable to watch games. The malfunctions lasted several days. The rift between Microsoft and MLBAM began to grow and hasn't stopped, said the sources, adding that lawyers for each side are still arguing over Microsoft's responsibility.

Through a spokeswoman, Microsoft declined to comment but did point us to plenty of other sporting events for which Silverlight was chosen, including NBC's Webcast of the 2008 Summer Games and CBS's online presentation of the NCAA basketball tournament. NBC also recently announced that it will broadcast the 2010 Vancouver Olympics using Silverlight.

But Silverlight was also suspected by many Netflix users of being the cause for a recent series of glitches that occurred with Netflix's streaming-video service. Microsoft appeared to acknowledge that its player was the cause of at least some problems when it said last month that Silverlight 3 could help Netflix customers who run lower-end computers and were experiencing dropped frames and poor viewing quality. Netflix has said that most of the feedback on Silverlight is positive.

Bob Bowman, MLBAM CEO, also declined to detail what happened with Silverlight. He did, however, acknowledge that MLBAM "has an ongoing dispute with Microsoft because of the significant problems we encountered last year." What Bowman wanted to discuss was Adobe Flash and the successful marriage of baseball and the Internet.

Q: How much better is your video player this year?
Bowman: The experience has been everything that we did not have a year ago...Nobody has seen true high-def before on the Web. (With this year's player) you can put it on any screen you want, there's no degradation at all. It has all the bells and whistles, picture-to-picture, DVR-quality pause, rewind, fast-forward, real-time highlights. The meat-and-potatoes of it of course is the picture quality itself and it is eye popping."

Q: How come your on-demand video subscription service appears to be more profitable than the other leagues?
Bowman: The nature of our game, we play every day, we have fans who watch us on Tuesday, talk about us on Wednesday, listen to us on Thursday and maybe go see us on Friday. They touch baseball every day. They just do it in different ways based on how much time they have. Today's society, the interactive-digital society, can stay in touch with baseball better than they've ever done before. That keeps getting better. The iPhone's MLB At-Bat application is one example of that.

It isn't because we're different or smarter. Baseball is just better. It's better suited for this kind of daily, hourly interactive conversation. Then you get the video and people have 15 minutes. You better give them the very best product you have.

Bob Bowman, CEO of baseball's technology unit

(Credit: Major League Baseball Advanced Media)

Q: How much harder and more expensive is it to do high-definition streaming?
Bowman: First of all it's based upon what the park does. Probably only 70 percent of the games are in true high-def. About 30 percent of the games aren't in high def even on your TV. It's roughly doubling in terms of the costs. The infrastructure is more certainly more expensive obviously. But the daily coding and redistributing almost doubles the cost. It isn't arithmetic. As you know the video is even more than doubling, but you get rates and expenses by the time you're done it roughly doubles the cost.

Presumably the costs will come down. They are certainly moving in that direction for the last several years. But for us it was a relatively straight-forward decision to give our fans the very best.

Q: What did you see in Flash that impressed you?
Bowman: You see several things. You see a high-grade product that's in some form on 99 percent of the browsers. You've got something that's got mass usage. Secondly you see with Adobe a company committed to the customer experience in video with the Flash Player. We see a partner that continues to invest in their product. They have the same desire that we do. They want the Flash Player to be the best thing anybody has ever seen and we want that. When you partner with people like that, it's not a philosophical discussion. We know where we want to be now how do we get there.

Adobe Systems on Wednesday is taking the Linux version of its Adobe Integrated Runtime (AIR) product out of beta, and bringing it up to speed with the versions available for Windows and Mac users.

The new version differs from previous beta versions of AIR for Linux by fully supporting Flash 10 which includes such niceties as 3-D effects, high resolution text rendering, custom filters, and support for digital rights management (DRM). These features are important for media intensive applications like photo and video editing tools, and applications like Adobe's AIR-based media player software, which make use of the DRM support to serve up protected content.

The update is also an important step toward unifying AIR across all three major computing platforms. The Windows and Mac versions of AIR were able to take advantage of certain features that the Linux version could not--it fragmented which apps Linux users were able to run. Most recently this happened with the popular Twitter client Twhirl, which became unusable for Linux users after requiring the latest spec of AIR to run special Flash 10 features.

Adrian Ludwig, Adobe's product manager for platform, says his company intends to keep all three versions up to date, and roll out future updates at the same time. In practice this will let developers write an application that does not require any special coding to get it to run on all the platforms. More importantly, it would keep situations like the one with Twirl from ever happening again.

Additionally Ludwig says one of the hurdles of developing for Linux has been compatibility. "Less than 2 percent of clients are using Linux," he said. "It's challenging to deliver applications to such a small market." Ludwig says he thinks that having such a platform that offers cross compatibility like AIR offers will bring in new developers that might have previously never thought of building their applications for something other than Windows.

Ludwig says the next frontier for AIR is getting it into handheld devices, starting with "mid-mobile" devices, something that was outlined at last month's Adobe Max Conference. Also worth noting is that this new Linux version is only compatible with three variants of the operating system including Ubuntu 7.1 and higher, Fedora 8.1 and higher, and Open SUSE 10.3 and higher.