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Posted at 7:13 AM ET, 02/ 4/2011

The Circuit: Verizon sells out iPhone 4, throttles data; Hulu CEO in hot water; Apple's online ads beat TV ads

By Hayley Tsukayama

LEADING THE DAY: Verizon and Apple are no longer taking pre-orders for the CDMA version of the iPhone 4, after selling out in less than 24 hours. Both sites now say that the phone will be available online on Feb. 9.

As eager customers ordered their phones, Verizon quietly announced in a memo on its Web site that it reserves the right to reduce the data speeds of its top 5 percent of data users, effective Thursday. The memo also outlined plans to use a new optimization and transcoding process to use less data, which may affect the look of a mobile Web site.

Hulu's Kilar getting the boot?: After publishing a manifesto on why online TV's advertisements are better than traditional TV advertisements, Hulu CEO Jason Kilar may be on his way out, says Business Insider. A source told Business Insider that a top News Corp. executive is telling people at Hulu that Kilar is on his way out.

The CEO ruffled plenty of feathers of high-powered feathers Thursday when he suggested that traditional TV ads were clogging up the airways and were not as effective as Hulu's online ads. An anonymous source from Walt Disney, spoke to The Financial Times distancing the company from Kilar's remarks and those "close to Hulu" said that Kilar was taking heat from the company's owners over his comments.

Apple online ads better than TV ads: Kilar got heat for citing a Nielsen report about the effectiveness of Hulu's ads, but a report on the effectiveness of iPod and iPhone ads for Campbell's Soup showed similar results -- customers were more likely to remember ads, messaging and branding on their mobile devices than on television. According to Advertising Age, Campbell's is not planning to dramatically change its advertising strategy because of the findings, but is using the results to validate its mobile campaign.

Hotmail starts alias accounts: Hotmail announced a new feature that will allow users to create disposable e-mail accounts. Users can link alias e-mail addresses to their main address for activities they don't want linked to their main account, such as site registrations or online shopping. When users decide they don't want that address anymore, they can simply delete it. The feature is similar to one already available on Yahoo! Mail's paid service.

Gadget generations: The latest study from the Pew Internet and American Life Project shows that laptops are more popular than desktops among Americans ages 18-34. Seventy percent of those surveyed in that age range own a laptop or netbook, compared to 57 percent with desktops. The study also found that gamers are becoming more and more mainstream -- 63 percent of 18 to 46-year-olds own a game console.

British Supremes say it's OK to tweet: Techradar reported that the British Supreme Court is now allowing journalists and others to tweet from the courtroom. While there are some reporting limitations, the court said the move is an attempt to embrace the opportunities that technology can offer to the legal profession. Lord Phillips, President of the Supreme Court, said, "An undoubted benefit is that regular updates can be shared with many people outside the court, in real time, which can enhance public interest in the progress of a case and keep those who are interested better informed."

By Hayley Tsukayama  | February 4, 2011; 7:13 AM ET
Categories:  AT&T, Apple, Consumers, International, Mobile, Online Video, Verizon  
Save & Share:  Send E-mail   Facebook   Twitter   Digg   Yahoo Buzz   StumbleUpon   Technorati   Google Buzz   Previous: The Circuit: Senators introduce Internet bill, Viacom returns to Hulu
Next: Experts weigh in on 'kill switch' legislation


Hulu's Kilar getting the boot?: Typical old school response. Shoot the messenger and put your head in the sand (or some other place the sun doesn't shine).

Posted by: braunj77 | February 4, 2011 10:16 AM | Report abuse

why should Kilar get the boot for telling the truth? Businesses ignore the truth and reality to their own peril.

Posted by: moonwatcher2001 | February 4, 2011 10:43 AM | Report abuse

Why should Kilar get the boot for telling the truth? Businesses ignore the truth and reality to their own peril.

Posted by: moonwatcher2001 | February 4, 2011 10:43 AM | Report abuse

I am curious regarding the Verizon web page restriction. Would that just affect Flash heavy websites?

Posted by: PhilSeymour | February 4, 2011 1:35 PM | Report abuse

I fail to understand how any CEO would be in trouble for saying that his product is better than that of the competition. Isn't doing just that a big part of his job?

Posted by: LRedBeam | February 4, 2011 1:49 PM | Report abuse

I set my phone alarm to wake me up at 3:00 a.m. to order my new Verizon iPhone. I logged onto their website with my Apple laptop using the Safari web browser. I went through the purchase process on the Verizon site. The website asked for a delivery address. I wanted to send it to my business office. When I tried to complete the process the site asked for the name of my business. There was no place visible to put the business name. After trying to do this for 45 minutes, I logged onto Apple Store. It was already down with an overload of order [2:30 a.m. EST]. I called Apple by telephone and went through a telephone purchase only for the operator to ask me to wait and then to tell me that their site had crashed and to call again later in two hours. I went back to bed. At 8 a.m. Thursday morning I went to work and logged onto my office computer [A PC] and completed the purchase of two eligible iPhone upgrades. It turns out that Verizon's website was not compatible with the Safari browser. There was a visible box to place the name of the business at 8:00 a.m. that wasn't visible on Safari at 3:00 a.m. Ironic that Verizon are selling an Apple product but don't have web compatibility with Apple's browser.

Posted by: stuspirn | February 4, 2011 2:06 PM | Report abuse

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