Apple blames record labels, film studios for high Australian prices

By Jane Wardell

SYDNEY (Reuters) - Apple Inc blamed "old-fashioned" record companies, film studios and TV networks for the inflated prices Australians pay compared with U.S. consumers for digital downloads, as it defended its pricing strategy on Friday.

Executives from Apple, Adobe Systems Inc and Microsoft Inc were grilled by a special Australian parliamentary committee tasked with investigating allegations of price gouging raised by consumer watchdogs.

Software and hardware products in Australia sell for an average of 50 percent more than their U.S. equivalents, according to a 2012 survey of 186 songs, games, programs and computers by Choice, a not-for-profit consumer advocacy group.

As soaring cost-of-living bills for basic services hurt the popularity of the minority Labor government ahead of a September 14 election it is widely tipped to lose, lawmakers are considering restricting the ability of companies to set prices in Australia.

Apple, Adobe and Microsoft executives told lawmakers the higher prices reflected factors including Australia's 10 percent goods and services tax, higher labor costs, copyright issues and geographical product differentiation.

Tony King, the vice president for Apple Australia, New Zealand and South Asia, said pricing on some products like the iPad mini and Final Cut Pro software was about the same as in the United States.

But at A$19.99 ($20.87), the Australian price of Justin Timberlake's album "20/20 Experience" on Apple's iTunes music store is about double the $10.99 charged in the United States. AC/DC's "Back in Black" is marked up 70 percent for Australian fans.

King said the pricing of digital content was based on wholesale prices set via negotiated contracts with record labels, movie studios and TV networks.

"The content industry still runs with perhaps old-fashioned notions of country borders or territories or markets," King said, adding that Apple had pushed content owners for lower Australian pricing.

Asked why Apple, the dominant provider of digital entertainment downloads, could not use its clout to knock down wholesale prices, King said responsibility ultimately lay with content providers.

"The cards are in the hand of the folks who own the content, that is not in our hand to play," he said.

"EVASIVE" ANSWERS

The three companies were accused of stonewalling the pricing inquiry after they initially declined to send executives to answer questions publicly. Adobe and Microsoft had provided written submissions while Apple did not respond at all.

The committee labeled some of the executives' answers as "evasive" and greeted others with skepticism.

A particular bone of contention was the need for so-called geo-blocking, under which companies prevent Australia-based web users from purchasing products at cheaper rates on U.S. sites.

Australians have to fork out A$3,175 ($3,300) for Adobe's CS6 Design and Web Premium suite, which Americans can buy for just $1,899.

Adobe Australia Managing Director Paul Robson said Adobe's Creative Cloud suite, which is bought on a A$50-a-month subscription basis, was priced on par with the United States and this was "the future of the way we will deliver our technology."

Committee member Stephen Jones said the subscription software placed "digital handcuffs" on users, forcing them to keep paying to continue accessing their files.

Committee deputy chairman Paul Neville cited the example of a suite of Microsoft products that cost the equivalent of A$2,324 in the United States, A$3,105 in Canada, A$2,323 in Singapore and A$4,136 in Australia.

"It seems what you put to us, you're charging what you can get away with in any market," Neville said to Microsoft Australia Managing Director Pip Marlow, who denied the charge.

"If we price the products too high, consumers will vote with their wallets and move elsewhere, we have a very competitive landscape," Marlow told the committee in Canberra.

($1 = 0.9580 Australian dollars)

(Reporting By Jane Wardell; Editing by Stephen Coates)

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South African desert to host speed record bid

JOHANNESBURG (AP) — Toiling with shovels, wheelbarrows and bare hands, about 300 workers removed 6,000 tons of stones and other debris from a vast stretch of desert in a desolate corner of South Africa over the past two years. If all goes well, it will become the place where a British-led team tries to breaks the world land-speed record.

"It will be a brisk ride," said Andy Green, the man who plans to break his own record in 2015, using a vehicle powered by rocket and warplane technology. His goal? Reaching 1,610 kilometers (1,000 miles) an hour.

The track of hard-packed earth at the Hakskeen Pan, tucked between Namibia and Botswana, is 1.1 kilometers (0.7 miles) wide and 20 kilometers (12.5 miles) long. It could rival Black Rock Desert in Nevada, where Green clocked 1,228 kilometers (763 miles) an hour and broke the sound barrier in 1997, and the Bonneville Salt Flats in Utah as the premier temple of speed in the world.

Clearing and scraping the track was a monumental task for the laborers, who plan to contact the Guinness World Book of Records in hopes their achievement will be recognized as the biggest area of land ever cleared by hand. They came from surrounding villages where unemployment is high, and the Northern Cape provincial government paid most of the workers an $11 daily wage, a standard amount for public works projects in the region.

Peter McKuchane, head of business tourism for the province, said the goal after Green's record bid is to transform the track into a tourist site in an area where people barely get by on livestock farming. Already, last year, races were held in the area.

Every meter will be scanned by laser to ensure smoothness.

"Flicking a stone up with the front wheels and hitting the rear wheels would be like being shot with a supersonic bullet. That would be enough to punch a hole in pretty much anything," Green said. "So we could destroy the car just by hitting the debris lying on the surface, never mind all the damage you would actually do to the wheels, rolling over."

Green chose Hakskeen Pan after a worldwide search. He found Hakskeen secure and accessible. Also, the vehicle's wheels are believed to perform better on the dried mud than on the salt flats of Bonneville and, according to Green, the surface at Black Rock has become rutted.

Speed is the ultimate measure of performance, and the quest to go faster than anyone is a fertile source of lore. Chuck Yeager was the first pilot to fly faster than sound, transforming him into a hero. Jamaican sprinter Usain Bolt brought down the house at the London Olympics with his three gold medals.

As with many British adventurers, 50-year-old Green brings an understated eccentricity to this elite class of speed demons. A mathematician and former Royal Air Force pilot, endowed with the title of Officer of the Order of the British Empire, he mused about the possible impact of billowing shock waves from his very fast car.

"One of the problems is working out how far back you, the media, and the general public all need to be so that as the car goes rushing past we don't have people exploding in its wake. It's a nice problem to have," Green said Tuesday in a news conference at the Johannesburg headquarters of South African telecommunications firm MTN, a sponsor.

Several teams on other continents are plotting to smash a record that the British have owned, off and on, over the past century. Green has the edge in sponsorship backing. His project has raised $24 million so far, and another $11 million might be needed.

His rivals are a flamboyant bunch.

"I'm probably a nutcase, I don't know," driver Rosco McGlashan said in a telephone interview from western Australia.

In Perth, McGlashan's band of self-described "speed freaks" are working on a 9-ton car, the "Aussie Invader 5R," that was in the planning for a decade before construction started. They plan to test the rocket engine later this year, and make a record attempt in 2014.

The North American Eagle team wants to restore the land-speed crown to the United States. The team cut the wings off a Lockheed F-104 Starfighter in hopes of turning it into the world's fastest car. The last American to set the record was Gary Gabelich at Bonneville in 1970.

"I expect to be the one in the cockpit unless my team deems me to be insane, which my wife has already declared," Ed Shadle, North American Eagle driver, project manager and former IBM manager, wrote in an email. He said the project is fun but frustrating, slowed partly by funding challenges.

These thrill seekers are thinkers too, precise and patient.

At Black Rock 15 years ago, Green drove the Thrust SSC, a black, jet-propelled car that wedded Batmobile menace with space rocket chic. Today it sits in a museum. Technology has come a long way since then.

Now Green and his design team are working on the aluminum-wheeled Bloodhound SSC (SuperSonic Car), powered by a military jet engine from the Eurofighter Typhoon aircraft along with a hybrid rocket motor to propel the engine to maximum speed. The namesake of the slender vehicle is a British missile built in the 1950s.

The team plans to crack 1,610 kilometers (1,000 miles) an hour in 55 seconds, with another minute to slow down with parachutes and other brake systems. The extreme push and pull sends blood rushing from feet to head and back again. Veteran pilots have lost consciousness under such stress.

A long time ago, the French monopolized land speed. Count Gaston de Chasseloup-Laubat recorded a then-impressive 63.15 kilometers (39.24 miles) an hour in an electric-powered car near Paris in 1898. Then came steam power, the internal combustion engine and, later, jet propulsion and rockets.

A car seeking to break the speed record must have a driver and four or more wheels. The Paris-based FIA, the governing body of motor sport, oversees results.

The Bloodhound will carry 16 cameras, allowing the world to watch the event in real time. The aim, besides the thrill and the entry in the record books, is to encourage young people into becoming scientists and engineers, Green said.

"At the end of the day, impressing the 12-year-old girl about science and technology is not going to happen if we have a massive crash," Green said. "It gets a lot of YouTube hits, but it won't leave the legacy of, 'Isn't science cool?' It will leave the legacy of, 'Aren't they stupid?'"

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Australia's Summer Is Hottest on Record

Australia's summer of 2013 is the hottest on record so far, the country's Bureau of Meteorology announced today (March 1).

The country's average temperature this summer has been 83.5 degrees Fahrenheit (28.6 degrees Celsius), 2 degrees F (1 degree C) above normal. That breaks the previous summer temperature record, set in the summer of 1997 to 1998, by 0.18 degree F (0.1 degree C).

Summertime in the Southern hemisphere runs during wintertime in the Northern hemisphere. Australia defines the season based on the meteorological definition, in which summer begins on Dec. 1 and ends on the last day of February.

A widespread and prolonged heat wave drove temperatures up for three weeks in January, with the hottest temperature during that period peaking at a whopping 121.3 degrees F (49.6 degrees C) in Moomba in South Australia. That heat wave contributed to massive wildfires, with 130 burning in New South Wales alone as of Jan. 8.

Records were also set in Sydney, which hit 114.4 degrees F (45.8 degrees C), and Hobart in Tasmania, which got up to 107.2 degrees F (41.8 degrees C). According to the Bureau, of the 112 locations used for long-term climate monitoring, 14 had their hottest day on record during the summer of 2012-2013. [The Harshest Environments on Earth]

The country also experienced the highest recorded number of consecutive days the average maximum daily temperature exceeded 102. 2 degrees F (39 degrees C). That occurred over seven days between Jan. 2 and Jan. 8, beating out 1973's record of four days.

With all the heat came little moisture. Summer rainfall was at its lowest since 2004-2005, with Victoria recording its driest summer since 1984-1985.

Australia didn't swelter alone. December and January were the hottest on record for land areas in the Southern Hemisphere. Temperatures in Patagonia, Chile, were more than 7.2 degrees F (4 degrees C) above normal in January, while much of southern Africa reported its hottest temperatures on record that month.

Australia's hot summer and dangerous wildfires echo the pain of previous years. In February 2009, a heat wave hit the province of Victoria, bringing scalding temperatures and no moisture for weeks. On Feb. 7, about 400 wildfires burned through Victoria, killing 173 people and earning the date the moniker "Black Saturday."

Meanwhile, other parts of the world have experienced their own miserable summers. The first five months of 2012 were the hottest on record for the contiguous United States, and things only got worse in July, when a heat wave tied or set daily records in every state. In total, the month set 2,755 highest maximum temperatures and 6,171 highest minimum (nighttime) temperatures.

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