Don’t wake the auditors – they’re asleep

Nice acerbic column by Ruth Sunderland…

Auditors at Ernst & Young would not notice a black hole if they fell into one. The firm checked the books of collapsed Christmas club Farepak for a number of years, yet failed to raise any alarms of a looming collapse.

That will come as little surprise to savers with Equitable Life. Ernst & Young gave the failed insurer a clean bill of health before a £1.5bn chasm opened in its accounts.

E&Y, unlike the poor families whose Christmas is blighted, did very well out of Farepak. It charged £144,000 in fees for its 2005 group audit and £77,000 in 2004. Unbelievably, it is refusing to make any donations to the Farepak Response Fund, saying it would be ‘inconsistent with our responsibilities as auditors to make payment to creditors’. That statement has all the hallmarks of a company being led by its lawyers rather than its moral sense…

The end of water-cooler TV

Peter Preston has a very observant piece about the state of broadcast TV. He starts from the fact that Peter Paterson, TV Critic of the Daily Mail has retired.

After Paterson, who? Actually, after Paterson, nobody. The Daily Mail has ceased to review television programmes: an unannounced, but significant, decision. The Mail, though, does nothing without careful forethought. And the thought here has a steely logic to it.

Once upon a time, television was full of national moments: mass audiences of 10 million or more tuning in and wanting to follow through the next day. But now that audience – fragmented across hundreds of channels – has virtually ceased to exist. Most of the time, any review of any show can only be valuable to a relatively small percentage of readers. Soaps? An exception, perhaps: you can catch up with them in the Saturday supplements. But through-the-week reviews have lost their relevance, just like television’s dominance of mass entertainment. (Goodnight ITV!) Use the space for more listings and previews, then, if you must. But recognise that the world has moved on….

It has. This stuff has a personal resonance for me because I was a TV critic for 13 years — the last nine on the Observer — and it was a wonderful occupation, because there was usually something interesting to watch — evenin the depths of the summer. It was also fascinating because in those days there were still huge audiences for individual programmes and series, and every viewer is a TV critic. So I had a wonderful postbag. It was like participating in a huge national conversation. I’ll never forget the letters I got during the first run of The Boys from the Blackstuff, or of anything by Dennis Potter.

I stopped in 1995, just as ITV was starting to disintegrate (and the BBC started to follow it downmarket) and the Web began to take hold. With hindsight, it looks as though I got out just in time.

For years, I’ve been arguing that the decline in broadcast TV is significant because it was the dominant organism in our media ecosystem. It shaped our society, poisoned our politics and fostered the delusion that most people are passive couch potatoes. So it’s really interesting to see the Mail spot the way the wind is blowing.

Blogging and freedom

This morning’s Observer column

What do these countries have in common: Belarus, Burma, China, Cuba, Egypt, Iran, North Korea, Saudi Arabia, Syria, Tunisia, Turkmenistan, Uzbekistan, Vietnam?

All are listed by the human-rights organisation Reporters sans Frontieres as having governments that seek to curtail freedom of expression on the internet. Some are the usual suspects, but it’s interesting to see cuddly Socialist Cuba keeping up with the massed goons of Burma, China and North Korea.

The two ‘stans’ are also coming along nicely, as their oil wealth increases, and of course Iran remains a staunch opponent of internet freedoms – or any freedoms at all.

Despite these efforts, Farsi has made it into the top 10 languages on the net, a reflection of an extraordinary phenomenon: the way Iranians, especially women, use the net to combat government control of conventional media. It seems to date from 2001, when hardliners shut down more than 100 newspapers and magazines and detained writers…

That YouTube deal

From Techdirt

Remember the rumor, kicked off by Mark Cuban, that Google was holding back $500 million from YouTube in escrow to deal with potential copyright infringement lawsuits? Yes, the same claim that Google CEO Eric Schmidt clearly denied was true last week. Well, it seems that when he called it false, it appears he only meant the number, not the concept. Today it came out that Google has actually put aside a little over $200 million in an escrow account, almost exactly as the original email Mark Cuban posted described. It’s to handle potential legal costs associated with copyright lawsuits. While it’s not nearly as much of the deal as originally suggested, it still is a significant chunk. There’s a second interesting tidbit in the article as well. While some had suggested that YouTube actually has been profitable, apparently, the company was so hard up for money, it needed to borrow $15 million between the time the deal was announced just over a month ago and its closing of the deal yesterday.

Sisters

Tilly and Zoombini, on a chair in my study.

Tilly’s expression reminds me of two lines from the Irving Berlin song, Sisters, (from White Christmas):

Lord help the mister
Who comes between me and my sister.

LATER… Just noticed another picture of the two, taken in the summer,

and realised that Tilly invariably sits on her sister’s right.

Travelling light

I’ve been through the new ‘security’ procedures at UK airports four times in the last fortnight. It’s getting to the stage where every passenger will have to strip naked before boarding a plane. The picture shows the scene at Stansted on a relatively quiet Sunday. On the left are the (relatively short) check-in queues. On the right, the queues for the security screening gates. Osama bin Laden has won, hands down.

The pleasures of pyromania

Sean, contentedly contemplating his handiwork.

Last Sunday, he and I spent a happy morning setting fire to a large pile of tree and hedge clippings. Many newspapers were consumed in the process and, with superhuman restraint, we resisted the temptation to read articles that we had missed.

MySpace: the story continues

From this morning’s New York Times

The Universal Music Group, the world’s largest music company, filed a copyright infringement lawsuit yesterday against MySpace, the popular social networking Web site, for allowing users to upload and download songs and music videos.

The suit, which also names MySpace’s corporate parent, the News Corporation, comes as the recording industry contends with how to exploit its copyrighted material online. The issue has taken on more importance as services built around user-generated content become popular and generate advertising revenue.

The lawsuit, filed in federal court in Los Angeles, is seen as part of a strategy by Universal to test provisions of a federal law that provides a “safe harbor” to Internet companies that follow certain procedures to filter out copyrighted works. The law requires sites to remove such content after being notified by the copyright holder…

Important health news

Tech Review reports that

Two weeks ago, Harvard researchers reported that high doses of resveratrol, a compound found in red wine, extend the life span of obese mice on a high-fat diet and keep them as healthy as mice on a normal diet … Their study suggested that resveratrol activates the molecular mechanisms thought to control aging–a good sign for pharmaceutical companies hoping to influence these pathways in order to treat the diseases of aging, from diabetes to cancer…

Pardon me, I’m just popping out to the health store for some resveratrol supplements.

Linux hardware

One of the most irritating things about the PC market is how difficult it is to buy laptops which do not have Windows pre-installed. When Ndiyo needed a machine to act as a mobile server for demos, we had to buy a Windows-crippled Vaio and then install Ubuntu on it. So despite wanting a machine that would run only open source software, we still had to pay the Windows tax.

It’s always seemed to me, therefore, that there was a market opportunity for a slick operation offering Linux-powered hardware. And lo and behold! — here’s one: :: system76. Looks pretty slick. Pity it only operates in the US.