An Appointment With Kim Dotcom

Paul Spain is the host of the weekly NZ Tech Podcast, one of New Zealand’s leading locally produced podcasts and often appears on TV and video as a commentator on consumer and business technology topics.

AUCKLAND, NEW ZEALAND — It’s been said that Kim Dotcom is a villain. Many, particularly those in the film industry and law enforcement, believe it. To others, he is a hero standing up for the rights of Internet users everywhere.

[More from Mashable: Kim Dotcom’s Mega Begins Early Rollout]

I wanted to find out for myself where he stood.

I arrived at the Dotcom Mansion early Sunday afternoon New Zealand time. It was just a few hours after the launch of Kim Dotcom’s new website Mega.co.nz and one year since his mansion was raided and he was arrested by New Zealand police in conjunction with a U.S. request to extradite him.

[More from Mashable: Kim Dotcom’s Mega Loses Web Domain Before Debut]

A friendly Kim Dotcom greeted each of us in a small media gathering, before sitting at the head of the table flanked by Ira Rothken, his California-based attorney.

I expected a prepared statement. That wasn’t the case. Dotcom shared his excitement about the 250,000 Mega signups in the first two hours and soon led into Q&A session for the remaining 45-minutes. He proved to be extremely adept in the way he responded to questions, working effortlessly to position Mega as an innovator. He indicated a desire to help the film industry succeed in the world of digital downloads and streaming — rather than being just a company out to line its own pockets.

Dotcom’s opinions and arguments for his cause were strong and generally well thought out, though on occasion seemed less robust. For instance he suggested he’d found a great way films could be funded in the future. His concept involves studios signing up digital streaming distributors around the world to fund a movie ahead of its production.

He felt distributors might pay for streaming rights before production, thereby funding the production. Unfortunately, I feel revenues from streaming (now and for the foreseeable future) are typically so low this would only provide a small fraction of the funds needed to produce a movie. And who wants to risk paying up front for a movie that might be a flop?

When asked about whether he would stay in New Zealand if he succeeds in stopping his extradition to the U.S. later this year, he was non-committal. On one hand he said he loved the country but on another he was worried he’d be persecuted by authorities, and in that case he’d leave. He spoke of journalists, music and movie producers on their way to visit him being harassed by customs officials upon arrival in the country –- including strip searches and even a request to view the content of one visitor’s laptop. I’ve not been able to verify these rather extreme occurrences.

Dotcom has positioned Mega as a service that sits between Dropbox and his previous site Megaupload -– with the added benefits of end-to-end encryption. He and Rothken went to great lengths to highlight that Mega would operate entirely within the law.

Dotcom made little effort to suggest Mega would be less prone to being a haven to copyright materials than Megaupload was. It seems there will continue to be a game of cat and mouse afoot as Dotcom and authorities try to outwit each other.

(A full audio recording of the discussion will be available later today at NZ Tech Podcast.)

In a one-on-one setting with Dotcom, I tried to gain more understanding about the open source elements of the Mega service and his commitment to New Zealand. Interestingly he was reticent to provide solid answers to either question and provided what I felt were just pat answers aimed at fobbing me off.

As we left the compound mid-afternoon, we saw Kim on stage rehearsing for the evening performance he would lead, with the support of musicians, his co-accused and investors in the new Mega. That performance included a dramatization of the raid on his home one year before. It was a gathering filled with media from around the country and a few from abroad. In the public context he continued to sell Mega extremely well –- to the point where someone commented to me that the event at times felt like a religious or marketing conference.

Dotcom currently remains on bail until his extradition hearing due in September. Amongst those in attendance, it appeared widely accepted that the bid to extradite him from New Zealand to the U.S. is likely to fail because of mistakes made by law enforcement and New Zealand spy agency GCSB.

After my visit, I’m left with a number of fairly clear impressions about Kim Dotcom and Mega. How you take these will depend on which side of the fence you stand:

1. Mega’s management team is making every effort to operate in a manner that does not fall afoul of the law (though it could be argued they did the same with Megaupload).


2. Mega will be used to distribute copyrighted materials such as movies, TV shows and music -– though likely to a lesser extent than Megaupload did.


3. Kim Dotcom will continue to draw controversy and be outspoken about the rights of Internet users everywhere. He is not backing down.

Love him or hate him, Kim Dotcom is back in business and, if he’s to be believed, no fair court will be able to stop him.

Dotcom raid being re-enacted at the mansion.

Click here to view this gallery.

Photos by Paul Spain

This story originally published on Mashable here.

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James Franco Is 'Hit of the Party' at Sundance

01/21/2013 at 11:15 AM EST

James Franco and Mario Lopez and Courtney Mazza

Neilson Barnard/Getty; Jeffrey Mayer/WireImage

The stars arrived by the dozens to Park City, Utah, for the 2013 Sundance Film Festival and PEOPLE has the details of their busy weekend.

James Franco was one of the last to arrive to the Stella Artois-hosted dinner for his documentary Kink on Saturday evening. Later, the Lovelace star hosted a large 1 a.m. "after, after party" at The Everest Mansion high up in the nearby mountains. The actor still managed to be up in time to surprise the guests at the Outfest Queer Brunch at Grub Steak Restaurant in Prospector Square Sunday morning with his Interior. Leather Bar. co-director Travis Mathews.

"James was the hit of the party," one brunch attendee tells PEOPLE. "Everyone wanted their picture with him."

Daniel Radcliffe may have been seen snuggling with Kill Your Darlings costar Erin Darke Friday night, but he went solo to the Next Generation Filmmaker dinner Saturday, where costar Michael C. Hall and his novelist girlfriend, Morgan Macgregor, were the last to leave while the most of the diners danced the night away at The Westway.

Glee star Jane Lynch turned the Festival into a family affair by taking her wife Lara Embry and daughters Haden and Chase to the New Era Chalet at the Lift in Park City.

Lynch was overheard stating she had "a peanut head" as she and her family picked out New Era Chicago caps – which lead to a lighthearted debate about the White Sox and the Chicago Cubs. While Lynch lobbied hard for the Cubs, her daughters were more interested in checking out the Nintendo Lounge nearby.

Newlyweds Mario Lopez and Courtney Mazza enjoyed a mini-honeymoon in Park City, or possibly a baby-moon?

The couple stopped by the TR Suites and enjoyed Lipton teas while perusing the Sears Lounge, where Mazza was overheard saying she and Lopez are "trying and hoping" for a second child. The couple later hit the Miami Lounge where, once again, they drank Hint Water rather than cocktails.

– Patrick Gomez

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Flu season fuels debate over paid sick time laws

NEW YORK (AP) — Sniffling, groggy and afraid she had caught the flu, Diana Zavala dragged herself in to work anyway for a day she felt she couldn't afford to miss.

A school speech therapist who works as an independent contractor, she doesn't have paid sick days. So the mother of two reported to work and hoped for the best — and was aching, shivering and coughing by the end of the day. She stayed home the next day, then loaded up on medicine and returned to work.

"It's a balancing act" between physical health and financial well-being, she said.

An unusually early and vigorous flu season is drawing attention to a cause that has scored victories but also hit roadblocks in recent years: mandatory paid sick leave for a third of civilian workers — more than 40 million people — who don't have it.

Supporters and opponents are particularly watching New York City, where lawmakers are weighing a sick leave proposal amid a competitive mayoral race.

Pointing to a flu outbreak that the governor has called a public health emergency, dozens of doctors, nurses, lawmakers and activists — some in surgical masks — rallied Friday on the City Hall steps to call for passage of the measure, which has awaited a City Council vote for nearly three years. Two likely mayoral contenders have also pressed the point.

The flu spike is making people more aware of the argument for sick pay, said Ellen Bravo, executive director of Family Values at Work, which promotes paid sick time initiatives around the country. "There's people who say, 'OK, I get it — you don't want your server coughing on your food,'" she said.

Advocates have cast paid sick time as both a workforce issue akin to parental leave and "living wage" laws, and a public health priority.

But to some business owners, paid sick leave is an impractical and unfair burden for small operations. Critics also say the timing is bad, given the choppy economy and the hardships inflicted by Superstorm Sandy.

Michael Sinensky, an owner of seven bars and restaurants around the city, was against the sick time proposal before Sandy. And after the storm shut down four of his restaurants for days or weeks, costing hundreds of thousands of dollars that his insurers have yet to pay, "we're in survival mode."

"We're at the point, right now, where we cannot afford additional social initiatives," said Sinensky, whose roughly 500 employees switch shifts if they can't work, an arrangement that some restaurateurs say benefits workers because paid sick time wouldn't include tips.

Employees without sick days are more likely to go to work with a contagious illness, send an ill child to school or day care and use hospital emergency rooms for care, according to a 2010 survey by the University of Chicago's National Opinion Research Center. A 2011 study in the American Journal of Public Health estimated that a lack of sick time helped spread 5 million cases of flu-like illness during the 2009 swine flu outbreak.

To be sure, many employees entitled to sick time go to work ill anyway, out of dedication or at least a desire to project it. But the work-through-it ethic is shifting somewhat amid growing awareness about spreading sickness.

"Right now, where companies' incentives lie is butting right up against this concern over people coming into the workplace, infecting others and bringing productivity of a whole company down," said John A. Challenger, CEO of employer consulting firm Challenger, Gray & Christmas.

Paid sick day requirements are often popular in polls, but only four places have them: San Francisco, Seattle, Washington, D.C., and the state of Connecticut. The specific provisions vary.

Milwaukee voters approved a sick time requirement in 2008, but the state Legislature passed a law blocking it. Philadelphia's mayor vetoed a sick leave measure in 2011; lawmakers have since instituted a sick time requirement for businesses with city contracts. Voters rejected a paid sick day measure in Denver in 2011.

In New York, City Councilwoman Gale Brewer's proposal would require up to five paid sick days a year at businesses with at least five employees. It wouldn't include independent contractors, such as Zavala, who supports the idea nonetheless.

The idea boasts such supporters as feminist Gloria Steinem and "Sex and the City" actress Cynthia Nixon, as well as a majority of City Council members and a coalition of unions, women's groups and public health advocates. But it also faces influential opponents, including business groups, Mayor Michael Bloomberg and City Council Speaker Christine Quinn, who has virtually complete control over what matters come to a vote.

Quinn, who is expected to run for mayor, said she considers paid sick leave a worthy goal but doesn't think it would be wise to implement it in a sluggish economy. Two of her likely opponents, Public Advocate Bill de Blasio and Comptroller John Liu, have reiterated calls for paid sick leave in light of the flu season.

While the debate plays out, Emilio Palaguachi is recovering from the flu and looking for a job. The father of four was abruptly fired without explanation earlier this month from his job at a deli after taking a day off to go to a doctor, he said. His former employer couldn't be reached by telephone.

"I needed work," Palaguachi said after Friday's City Hall rally, but "I needed to see the doctor because I'm sick."

___

Associated Press writer Susan Haigh in Hartford, Conn., contributed to this report.

___

Follow Jennifer Peltz at http://twitter.com/jennpeltz

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IHT Rendezvous: China's 'Lamborghini' Coefficient: Who's Getting Richer and Who Poorer?

BEIJING — Search the word Gini, or “jini,” for Gini coefficient, the well-known measure of income inequality, on China’s biggest microblogging site and the first result today was for Lamborghini, the Italian luxury sports car (in Chinese, the two words share a similar sound in the last part of the car’s name.)

That is very ironic because the Gini coefficient measures income inequality and the Lamborghini, which can set a buyer back $300,000, is not an uncommon sight on the streets of big Chinese cities, an object of resentment among ordinary people who view it as a symbol of how a few people are amassing tremendous wealth as many struggle with low incomes, low bank deposit rates, high property prices and persistent inflation.

In other words, income inequality in China is politically sensitive.

(The Gini index is a measure of household income inequality; zero represents perfect income equality and one, perfect inequality, a situation where one person would own all the wealth, as the World Bank explains.)

So last Friday, when the government announced China’s Gini coefficient figures for the first time in over a decade, there was excitement – and quite a bit of scorn – expressed online and in media reports as well as private conversations. Why?

According to the figures, China today is actually more equal than in 2003, the National Bureau of Statistics said.

From 2003, the Gini coefficient did indeed rise, the bureau said, from 0.479 to a high in 2008 of 0.491. But by 2012 the figure had dropped to 0.474, meaning China is a more equal society today than a decade ago – despite all those Lamborghinis on the street.

At a news conference, Ma Jiantang, the bureau director, called the rate nevertheless “relatively high,” Xinhua reported. “China must accelerate its income distribution reform to narrow the rich-poor gap,” Xinhua said.

Yet the government’s “effective measures” to “bring benefits for its people” after the gobal financial crisis began in 2008 had brought down the measure, it quoted Mr. Ma as saying.

To compare with the United States: In 2011, the Gini coefficient there was also high, at 0.477, according to the U.S. Census Bureau.

Xinhua quoted the United Nations as putting the “warning level” on the rich-poor gap at 0.4.

Yet in China this weekend, few believed the new figures.

Here are two lively reactions from microblogs, from a journalist and an economist who together have over six million followers:

“Please choose one: 1. Really, thank you Fatherland; 2. That’s a myth; 3. Not sure, but hurry up and increase my salary,” Shi Shusi, a journalist and social commentator, the director of the state-run Worker’s Daily Weekly, said on his Sina Weibo account to nearly 875,000 followers.

Xu Xiaonian, a professor of finance and economics at the China Europe International Business School, wrote on his Weibo account (5.5 million followers): “A journalist rang to ask me to comment on today’s macroeconomic figures. I’d have to be crazy to truthfully comment on false figures. That Gini coefficient, to use the words of Zheng Yuanjie,” a popular children’s story writer, “‘no-one would even dare to write a fairytale like that.’”

A different report, in December, by researchers at the Southwestern University of Finance and Economics in the city of Chengdu, put China’s Gini at 0.61 for 2010.

While people are by and large glad to see the government once again measuring the figure after a decade-long hiatus (which Mr. Ma explained last year was due to the fact that the government did not actually know what people in the cities were earning, as I explored in a Letter from China,) a major problem facing the government is the scale of people’s “hidden income,” estimated by the Beijing-based economist Wang Xiaolu several years ago to be about 9.3 trillion renminbi (nearly $1.5 trillion).

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Google says Wall Street estimates need adjusting

SAN FRANCISCO (Reuters) – Google Inc issued a rare advisory to Wall Street on Friday that analyst estimates for its fourth quarter financial results are flawed.

The world’s No.1 search engine, which reports its quarterly results on Tuesday, said most analysts have not adjusted their estimates to reflect the pending $ 2.35 billion sale of the Motorola Home business.

The business must be presented separately from the results of Google’s continuing operations under U.S. accounting rules, Google Treasurer Brent Callinicos wrote in a post on Google’s investor relations Web page on Friday.

“As of this writing, a majority of Wall Street analysts who cover Google have not reflected the Home business as discontinued operations in their estimates,” Callinicos wrote.

The discrepancy means the fourth-quarter net revenue that Google reports on Tuesday could appear to be less than the $ 12.34 billion average that analysts polled by Thomson Reuters I/B/E/S are expecting.

Raymond James analyst Aaron Kessler says his fourth-quarter net revenue estimate includes nearly $ 900 million from the Motorola Home business.

“They’re saying that the headline number is going to be less than what most analysts have for Q4,” said Kessler.

The advisory is a rare move for Google, which does not provide financial forecasts and typically has limited interactions with analysts. The company has in the past provided accounting advisories to analysts about the Motorola Mobility business, which Google acquired for $ 12.5 billion in May.

Google bought Motorola Mobility primarily for its large portfolio of communications patents and its mobile phone business.

In December, Google agreed to sell the Motorola Home television set-top box business to Arris Group Inc for $ 2.35 billion in cash and stock.

Analysts expect Google to report adjusted earnings of $ 10.56 per share for the fourth quarter.

“It’s a little surprising that they’re doing this the Friday before the report,” said Kessler. “They should have put it out a week ago if they wanted analysts to change their numbers.”

(Reporting By Alexei Oreskovic. Editing by Andre Grenon)

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Allison Williams of Girls: I'm Nothing Like Marnie, But I Root for Her

TV Watch

By Tim Nudd

01/20/2013 at 11:15 AM EST

Allison Williams wouldn't masturbate in a public restroom. But that's not the only difference between her and Marnie Michaels, the character she plays on HBO's hit comedy Girls.

"There were moments reading the script that I thought, 'WOW, okay!' " the actress, 24, tells Company magazine's February issue and digital edition. "It's the most private thing anyone can do, but being an actress can make you feel vulnerable."

She adds: "My grandparents watch the show. I don't know why I was so concerned, though. They have been alive for virtually 90 years, so who am I to presume that sex never existed before me?"

Girls was a huge hit at Sunday's Golden Globe Awards, winning best comedy and best actress in a comedy for Lena Dunham. Williams plays Dunham's sidekick and best friend, a character who seems responsible at first, though her insecurities soon become clear.

"We're really different," Williams says of she and Marnie. "I've known I wanted to be an actress since I was 4, but Marnie still has no idea what she wants. But I'm so in her corner, even when she's wrong."

She adds: "In season two, Marnie goes through some real downs. I was shocked at how emotionally drained I felt from that."

Asked what makes Girls so special, Williams tells the magazine (which offers behind-the-scenes footage of her cover shoot") that the show captures the zeitgest for many young people these days.

"There is nothing alienating or too hipster about it," she says. "We're not dating handsome boys. They're weird. We don't have jobs you dream about. In fact, not all of us have jobs. It feels accessible. And the relationship between the girls is brilliant. It's like a digital time capsule – people will watch it in 20 years time, and it will sum up a certain generation."

Williams says she's dealing with her newfound fame mostly by not Googling herself, and shrugs off criticism that she got a head start in the business because she's the daughter of NBC newsman Brian Williams.

"At the end of the day, even if all these wonderful doors are open for you, you have to stride through them," she says.

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Wall Street Week Ahead: Earnings, money flows to push stocks higher

NEW YORK (Reuters) - With earnings momentum on the rise, the S&P 500 seems to have few hurdles ahead as it continues to power higher, its all-time high a not-so-distant goal.

The U.S. equity benchmark closed the week at a fresh five-year high on strong housing and labor market data and a string of earnings that beat lowered expectations.

Sector indexes in transportation <.djt>, banks <.bkx> and housing <.hgx> this week hit historic or multiyear highs as well.

Michael Yoshikami, chief executive at Destination Wealth Management in Walnut Creek, California, said the key earnings to watch for next week will come from cyclical companies. United Technologies reports on Wednesday while Honeywell is due to report Friday.

"Those kind of numbers will tell you the trajectory the economy is taking," Yoshikami said.

Major technology companies also report next week, but the bar for the sector has been lowered even further.

Chipmakers like Advanced Micro Devices , which is due Tuesday, are expected to underperform as PC sales shrink. AMD shares fell more than 10 percent Friday after disappointing results from its larger competitor, Intel . Still, a chipmaker sector index <.sox> posted its highest weekly close since last April.

Following a recent underperformance, an upside surprise from Apple on Wednesday could trigger a return to the stock from many investors who had abandoned ship.

Other major companies reporting next week include Google , IBM , Johnson & Johnson and DuPont on Tuesday, Microsoft and 3M on Thursday and Procter & Gamble on Friday.

CASH POURING IN, HOUSING DATA COULD HELP

Perhaps the strongest support for equities will come from the flow of cash from fixed income funds to stocks.

The recent piling into stock funds -- $11.3 billion in the past two weeks, the most since 2000 -- indicates a riskier approach to investing from retail investors looking for yield.

"From a yield perspective, a lot of stocks still yield a great deal of money and so it is very easy to see why money is pouring into the stock market," said Stephen Massocca, managing director at Wedbush Morgan in San Francisco.

"You are just not going to see people put a lot of money to work in a 10-year Treasury that yields 1.8 percent."

Housing stocks <.hgx>, already at a 5-1/2 year high, could get a further bump next week as investors eye data expected to support the market's perception that housing is the sluggish U.S. economy's bright spot.

Home resales are expected to have risen 0.6 percent in December, data is expected to show on Tuesday. Pending home sales contracts, which lead actual sales by a month or two, hit a 2-1/2 year high in November.

The new home sales report on Friday is expected to show a 2.1 percent increase.

The federal debt ceiling negotiations, a nagging worry for investors, seemed to be stuck on the back burner after House Republicans signaled they might support a short-term extension.

Equity markets, which tumbled in 2011 after the last round of talks pushed the United States close to a default, seem not to care much this time around.

The CBOE volatility index <.vix>, a gauge of market anxiety, closed Friday at its lowest since April 2007.

"I think the market is getting somewhat desensitized from political drama given, this seems to be happening over and over," said Destination Wealth Management's Yoshikami.

"It's something to keep in mind, but I don't think it's what you want to base your investing decisions on."

(Reporting by Rodrigo Campos, additional reporting by Chuck Mikolajczak and Caroline Valetkevitch; Editing by Kenneth Barry)

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Algeria Begins ‘Final Assault’ on Gas Field; 7 Hostages Reported Killed

BAMAKO, Mali — The hostage crisis in the Algerian desert appeared to be reaching a bloody conclusion Saturday as the official Algerian news agency reported that the army had launched a final assault on the gas field taken over by Islamist militants, killing 11 of them, but only after they had executed seven hostages.

“In principle, it’s all over,” a senior Algerian government official said from Algiers. The official said that security forces were “doing cleanup” to make sure some of the kidnappers were not hiding in the sprawling industrial complex.

Philip Hammond, the British defense secretary, said at a news conference in London that the Algerian military operation was over, but he called the loss of life since the start of the crisis “appalling and unacceptable.” Defense Secretary Leon E. Panetta, who appeared with Mr. Hammond, said he did not yet have reliable information about the fate of Americans at the facility, although the Algerian official said two had been found “safe and sound.”

The news agency report did not give the nationalities of those it said were executed, and it remained unclear if there were other hostages at the remote plant and whether they were alive. Earlier news reports said at least 10 and as many as dozens of hostages from several nations were in the hands of the kidnappers as of Friday.

United States officials had said that “seven or eight” Americans had been at the In Amenas field when it was seized by the militants on Wednesday.

One American, Frederick Buttaccio, 58, of Katy, Tex., was confirmed dead on Friday, and the French government said one of its citizens, identified as Yann Desjeux, had also died before Saturday’s raid. Britain earlier said at least one of its citizens was killed, and an Algerian state news agency said Algerians had also been killed as of Friday.

The Algerian official said no precise tally of the dead had yet been made, and that it would be difficult to establish one quickly. “There are corpses that are totally charred,” he said. “We’ve got to do identification work. It’s very difficult.” It was not immediately clear why the bodies were burned, although the Algerian news agency said the militants had set fire to part of the complex Friday night, which prompted the military’s assault Saturday. The raid, if it swept up all the attackers, would bring to an end a four-day siege involving dozens of hostages and kidnappers that drew criticism from Western governments for the tough manner in which it was handled by the Algerian security services. Attacks on the kidnappers by the government forces have caused an unknown number of deaths among the hostages, in addition to those who were executed by the militants, who may be linked to Al Qaeda.

One Algerian who managed to escape told France 24 television late Friday night, that the kidnappers said “We’ve come in the name of Islam, to teach the Americans what Islam is.” The haggard-looking man, interviewed at the airport in Algiers, said the kidnappers then immediately executed five hostages. The militants who attacked the plant said it was in retaliation for French troops sweeping into Mali this month to stop an advance of Islamists south toward the capital.

The Algerian state oil company, Sonatrach, said Saturday that the attackers had evidently mined the facility with the intention of blowing it up and that the company was working to disable the mines.

Throughout the siege, precise information about the number of killed has been difficult to obtain from the remote site, with the government putting out varying figures.

The Algerians have rejected the criticism of its go-it-alone approach, toughest from the British and Japanese governments whose nationals were among those kidnapped, saying they have had years of experience dealing with terrorist attacks. The Algerian government has also denied that it started the confrontation, saying troops were merely responding — on Thursday — to the militants’ attempts to leave the field with hostages.

The government official acknowledged Saturday morning though that the militant attack was of a scale and complexity the country had never experienced before.

“This was a multinational operation,” he said of the kidnappers. “These are not Algerians. They’ve come from all over, Tunisia, Egypt, Mauritania. It’s the first time we’ve handled something on this scale. This one is different, it’s of another dimension,” he said. Although some of the escaped hostages in recent days have said some of the militants were not from Algeria, it is not yet clear that none were, and the Algerian government and militants have previously said the mastermind was an Algerian who had broken away from Al Qaeda in the Islamic Maghreb.

Nonetheless, the brazenness of the assault — dozens of fighters attacking one of the country’s most important gas-producing facilities — is likely to call into question Algeria’s much vaunted security strategy in dealing with the Islamic militants who shelter in its southern deserts, near the Mali border.

The Algerians have made a virtue out of keeping a lid on these militants, pushing them toward Mali in a strategy of modified containment, and ruthlessly stamping them out when they attempt an attack in the interior of the country. So far it has worked, and Algeria’s extensive oil and gas fields, an extremely important revenue source, have been protected.

That relative success had allowed Algeria to take a hands-off approach to the Islamist conquest of northern Mali in recent months, even while Western governments pleaded with it to become more directly involved in confronting the militants, who move across the hazy border between the two countries.

But now, with this week’s attack, Algeria may have to rethink its approach, analysts suggest, and engage in a more frontal strategy against the Islamists.

The senior government official appeared to acknowledge this in the interview Saturday, saying: “This has international implications. This is not just about us, it’s international.”

If the outcome represents a relative setback for Algeria, it could be viewed as a decided victory for Islamists who carried out the assault, who achieved several of their shared perennial goals: killing large numbers of Westerners and disrupting states they have put on their enemies list — including Algeria.

Indeed, the militants said Friday they plan more attacks in Algeria, in a report carried on a Mauritanian news site that often carries their statements.

Steven Erlanger and Scott Sayare contributed reporting from Paris and Elisabeth Bumiller from London. .

This article has been revised to reflect the following correction:

Correction: January 19, 2013

Because of an editing error, an earlier version of this article misstated the nationality of a government official who said security forces were searching the gas complex. The official was Algerian, not Turkish.

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Social media dispute resolution stumps some companies

(Reuters) – If HBO cuts out on you in the middle of the latest “Girls” episode, and you have Charter Communications Inc as your cable provider, don’t try tweeting your dismay to their customer service department. Nobody will hear your lament.

Charter, the fourth largest cable provider in the U.S. with 5.2 million customers across 25 states, closed up its social-media based customer service team in December. “Umatter2Charter,” as it was known, had been taking customer complaints over Twitter and Facebook and trying to resolve them, but the company says it is now done with working out customer service issues in social media forums.

The move, which might seem to conflict with the growth of social media, highlights the difficulty some businesses are having with free-flowing, round-the-clock social media, its public nature and the expectation of immediate responses.

With Facebook users numbering about a billion and Twitter drawing 200 million, it might be hard to believe that any retail enterprise would drop out of the fray, but Charter isn’t the only major company to announce such a move. Also in December, the largest single grocery store in New England – the Wegmans in Northborough, Massachusetts – shuttered its Facebook page despite having some 8,000 fans.

“It’s a tough sport,” says J.D. Peterson, vice president of product marketing for San Francisco-based Zendesk, which helps companies manage customer service. “The real-time nature of it – at times the volume that can come from it – it’s very new and different for businesses.”

While Peterson’s company recommends going where the customers are – and a big chunk are clearly on social media – Peterson says not all businesses share the same philosophy or have the ability to engage those consumers in these open forums. But any company that has a significant online presence doesn’t really have a choice, he says, working with consumers through social media is expected of them.

Advocates for the use social media say the challenge actually presents an opportunity for businesses – showing they are responsive to complaints and care about their customers can bring in revenue.

“I have seen this time and time again, and the end result is that the interaction often turns an irate customer into an advocate for the brand. And that is worth it’s weight in gold,” says Mike Rowan, chief marketing office for Atlanta-based Swarm, which manages social media for companies.

That’s certainly the way retailer Lands’ End, a division of Sears Holdings Corp, sees it.

“When we started using social media tools like Facebook and Twitter in early 2009, it gave us a new opportunity to do what we’ve done for 50 years, which is connect with our customers,” says Michele Casper, Lands’ End’s senior director of public relations. “Whether it is through social media, our call centers or online, we offer the same level of customer service through each channel.”

DIVERTING COURSE

Charter says it is not walking away completely from social media – just the idea of providing customer service via Twitter. The company says it has ample other avenues for consumers to get help – including telephone, customer service counters and live chat on its web page.

“We communicate with thousands of customers each day on the phone and in person, and that’s where we’ll focus our efforts,” says Charter spokeswoman Anita Lamont. “While social media is a method some consumers choose to seek help, Charter offers phone and web-based contact solutions where all customers can access resources to provide assistance.”

The abandonment of the Facebook page at the Massachusetts Wegmans store, which caused a great fuss among the store’s “fans,” was, in large part, due to the inability to respond quickly enough to consumers. Store personnel couldn’t break off enough time from their other roles to constantly monitor the page, Wegmans spokeswoman Jo Natale says, allowing comments to sit unanswered – a no-no in the world of social media.

“Our top priority has always been, and will continue to be, providing incredible service to customers who shop in our stores,” she says. “And it isn’t as though there aren’t other avenues for folks to connect with us if they have a question or concern.”

As much as customers expressed surprise and dissatisfaction at the decision, Natale says, it came down to a decision that if the store couldn’t serve the Facebook page at a level it felt was expected that it shouldn’t do it at all.

“They quickly discovered, once the store opened and got very, very busy, that it wasn’t so easy to stay on top of comments or to find the time to post,” Natale says. “In a retail operation like ours, there isn’t anyone sitting at a PC or checking a mobile device throughout the day. It’s a fast-paced business that requires our people to be on the floor serving customers.”

(The author is a Reuters contributor. The opinions expressed are his own)

(Follow us @ReutersMoney or at http://www.reuters.com/finance/personal-finance; Editing by Beth Pinsker and Tim Dobbyn)

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Rob Lowe Acquits Himself Nicely in Lifetime's Prosecuting Casey Anthony (Review)

TV Watch

By PEOPLE TV Critic Tom Gliatto

01/19/2013 at 11:45 AM EST

Rob Lowe in Prosecuting Casey Anthony

Allen Fraser/Lifetime

    

When last we saw Rob Lowe in a Lifetime movie, he was playing murderer Drew Peterson with a sandy mustache that made him look like the world's most dangerous park ranger.

Lowe has a much better vehicle for himself in Prosecuting Casey Anthony (Saturday, 8 p.m. ET/PT), in which he plays Jeff Ashton, the Florida prosecutor who last year failed to win one of the country's most notorious capital cases.

As the court announces that Anthony, who had been charged with killing her 2-year-old daughter, Caylee, is guilty only of misdemeanor charges, Lowe clasps his hands in front of him and – in a fine, simple moment – appears to have all the life siphoned out of him. His face has the pallor of a wide smudge of cigarette ash.

The rest of the country, as you may recall, was more visibly stirred up at the stunning verdict.

Nancy Grace, clips of whose hectoring, furious TV commentary pepper the movie, famously declared: "The devil is dancing tonight."

Anthony has been living in seclusion since her release.

Prosecuting Casey Anthony basically tries to explain how public opinion and the deliberating jury responded so differently to the conflicting stories of prosecution and defense, one alleging that Anthony murdered the child and dumped her in a swamp, the other that the actual cause of death was accidental drowning in a swimming pool.

Even though this is based on prosecutor Ashton's book about the case, Imperfect Justice, in the movie he comes across as overly confident – Lowe laughs in derision during the defense's summation – even while his team's mistakes are quickly seized upon and exploited by opposing attorney Jose Baez (The Office's Oscar Nunez).

(Ashton, by the way, was sworn in Jan. 11 as Florida's new state attorney.)

The movie is shot with a stylistic blankness that does no harm to a compelling legal narrative, and the acting – like Lowe's – is unmannered, believable and to the point. Since most viewers will already come to this with memories from the endless news coverage, any other kind of acting would probably seem like scenery-chewing.

Not surprisingly, Anthony herself (Virginia Welch) has virtually nothing to say.

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