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BusinessWeek (October 17, 2005) PDF

144 Pages·2005·15.897 MB·English
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THE GAP GAMBLES ON DESIGN KODAK’S SCARY PICTURE l (P. 62) (P.84) OCTOBER 17, 2005 www.businessweek.com ESPN President George Bodenheimer (Photo illustration) N P S E E R P I M E E H T s p oCrat sn ht hoel d h ooftft ietsst r b)i vraalns?d i n BY TOM LOWRY (P. 66 imagine color at the speed of black & white. ©2005 Samsung Electronics America, Inc. Samsung is a registered trademark of Samsung Electronics Co., Ltd. All product and brand names are trademarks or registered trademarks of their respective companies. Output simulated. Imagine last minute color reports printed in a snap, with time for tweaks. A laser printer that prints color as fast as black & white: 21ppm color/21ppm black & white. With the Samsung CLP-600N, it’s not that hard to imagine. To learn more, visit www.samsung.com/colorprinter Samsung printers.Samsung. Inside and out. Network-dependent features may not be available on all phones. ©2005 Sprint Nextel. All rights reserved. SPRINT, the “Going Forward” logo and the NEXTEL name are trademarks of Sprint Nextel. Fortune 1000 is a registered trademark of FORTUNE Magazine, a division of Time Inc. 800-Sprint-1 sprint.com/business Reinventing the Yes-man. He’s the one who says yes to the way business works today: in the field, on-site, outside the walls of the office. The sales force closer to sales. The company closer to customers. 96% of the Fortune 1000® already say yes to Sprint Business. And now that Sprint and Nextel are together, any size business can benefit from the most complete communications company. Sprint has its own nationwide wireless and wireline networks, so you can make just about any place a workplace, increasing the productivity and profit of your business. GPS navigation for your drivers? Walkie-talkie phones for your team? Secure wireless access to your servers? One standard for voice and data traffic? Yes, yes, yes and yes. No matter what you want to do or when you want to do it, Sprint Business has the only answer a Yes-man or Yes-woman wants to hear. MEET THE NEW BOSS Its authority is absolute. The new Cadillac DTS rules its class with the most powerful engine.* And it commands the road with available Magnetic Ride Control, the world’s fastest-reacting suspension system.Grasp the reinsof power.The new 2006 Cadillac DTS,starting at $41,990.# A year of OnStar safety, on every Cadillac.† Details at cadillac.com. #MSRP. As shown $51,285 MSRP. DTSwith Performance Package.Tax, title, license, dealer fees and other optionalequipmentextra. *Based on 2005 AutoPacific Large Luxury Car class. †Standard one-year OnStar service varies by model. Call 18884ONSTAR (18884667827) or visit onstar.com for system limitations and details. ©2005 GM Corp.All rights reserved.Break Through®Cadillac®Cadillac badge®DTS®Magnetic Ride Control™OnStar® October 17, 2005 Cover Story 66In the Zone ESPN boss George Bodenheimer has turned his brand into the crown jewel of the Disney Kingdom. Now, as rivals race to emulate his success, he’s trying to penetrate even deeper into the lives of sports fans 74The Real Boys’ Club With plenty of sports on the Net, espn.com lures more male viewers 18 to 34 than any of its competitors 78Mr. Touchdown for the NFL Former espnand abcexec Steve Bornstein is making smart calls in negotiating the league’s tvdeals a; k 66 f a k News: Analysis & an v e Commentary y b ESPN GOES DEEP r Its long reach includes 36The Exurbs:Something’s Gotta Give me With cheap energy costs and low ei TV, radio, a magazine, h mortgage rates disappearing, the n e and a formidable Web millions who fled into the outer reaches od presence. Next up? face their first real challenge f b o The ESPN cell phone 40Suddenly, Small is Beautiful h p Compact cars are getting snapped up, a r and not just for the gas savings: New og t offerings are plenty stylish o h 42The Allied Front Against Microsoft s; prt The Google-Sun software-bundling deal ne is modest, but ultimately it could break elimb the giant’s hammerlock on desktops ael e la 44A Court for Business? micherin Fhairvset hRiogbhe hrtosp, neso wth aMt itehres .S Euxperceumtiev eCsourt n by kath 36 62 will focus on their concerns tioft) 48In Business This Week rale stm uo THE GOOD LIFE? ALL DRESSED UP BwMuecseGiknrlayew,s se-HWxcielele pkCt of(oImSr SpoaNnne 0i ew0se0, e7Ik-n 7icn1.3 J5Ea)xn eIuscasurutyie va enn,ud mE odbnieetor i rn3i a9Al5,u 5gC,u ipsrctu,ub bllaiyst iThoehnde, o illbott Pburiiclde ipnr ethses uerxeusrbs Gfoar pF’os rrtihs k&y Tdoewsnigen aNaAaLP8ndd44go.YdddT1rs.8e rti A1tmee,1iL dso0mRa2svn0ese.eea d2tnEsrle0 t t mOri t.s: oaNmaiPS:kniu ale,eg:Dm i rIn lbiPAOiobdnwG.fde gfk5aMrii ccc 1d ua5e4doLsls90frstt:f1e0d si-1psc.e112,seo24r 2 svs251c1.@t8-0 ha7A.1cag4C.vdne 9easgR 6npnfeeu uaastBlediu fida tarolo tln afmh Btt Pu ehRuNnoneosdest iaA.twnecd mleo i,Ysv PmeMseourWrriibackselba,si ecsilNseka, s ..tNY aCiPo.eua,n.w gOna a an.Y, dM doBOi raaoakNinxt,l cover phot(this page, 6|BusinessWeek|October 17, 2005 106 International Business 54France: High Fashion Anxiety LUXURY LINERS Belt-tightening is in style at Gucci and At $1 million-plus and the other global luxury houses. Labels $600 to fill up, these will be dropped if they don’t turn a profit well-appointed RVs are 56Germany: Mercedes Gets Busy New ceoZetsche’s first move: Cut the wheels of choice 8,500 workers. That’s just for starters for the privileged few 58China: A Thousand Brands Bloom Multinationals and locals are competing for more discerning Chinese consumers Government Information Columnists 51Washington Outlook Technology 26Wildstrom: Technology & You The next Treasury Secretary very likely won’t be a ceo.Who’s on the short list 97Hey, Advertisers, TiVo Is Your Friend Wide-screen laptops edge into offices 28Fine:Media Centric Starcom MediaVest’s Rishad Old Media’s lame-duck days Design Tobaccowala is showing big-name clients how to get results in New Media 30The Barker Portfolio 62It Sure Ain’t Old Navy Estée Lauder: Looking good despite its Gap’s new chain, Forth&Towne, is a bet The Corporation wrinkles that store design can lure women 35 and 33Cooper &Madigan: Business Outlook over—and keep them hanging around 102Prescription for Upheaval U.S.: The rate hikes aren’t over yet How the new Medicare drug program is France: Consumers could get nervous Sports Biz forcing massive changes across the 118Marcial: Inside Wall Street pharmaceutical industry 80And Now, the Chief Endurance Officer Ideas Executive fitness used to be a leisurely Personal Business 18 holes. Now it’s triathlons, marathons, 124Books and adventure races 106McMansions on Wheels Whittle: Crash Course Million-dollar recreational vehicles— 126Viewpoint Finance and pricey rvresorts in upscale Kuttner: The havoc wreaked by Katrina locales—are luring the wealthy 84A Tense Kodak Moment may hit the economy where it is weakest With traditional revenue streams 108Beyond the Best-Seller List 128Outside Shot running dry faster than expected, the Ten Web book lists for the choosy sap’s Hasso Plattner on innovation company is in a ferocious cash squeeze 110Numbers That Blow You Away 86The Bankruptcy Boutique An unexpected earnings jump often Voices of Innovation signals more gains ahead Saybrook Capital specializes in “big, 24Nancy Brinker:Promise Keeper ugly”Chapter 11 cases—like airlines 112A Pro Who’s Mad About Munis Her Race for a Cure is key to recent 88Airline Analysts’ Bumpy Ride pimco’s Bill Gross owns 35 closed-end advances in breast cancer research With so many carriers in bankruptcy muni bond funds in his own portfolio court, their jobs are on the line 114Finding Fertile Ground Overseas Features Entertainment Iflnatier rtnoa ytoiounra iln rveeaslt mesetantte p coarntf aodlido some 15UpFront 20Readers Report 92Daggers Drawn over DVDs 116Personal Business Plus 22Corrections & Clarifications Why the Roth 401(k) is a “dud”; In the high-stakes fight over disk 120Figures of the Week formats, Sony may be gaining the edge investing patience pays off; vanity over Microsoft playing cards; a Tiffany exhibition 122Index of Companies 96High Drama over High Def Should you load up on hddisks?It may www.businessweek.com make sense to wait out the format battle America Online Keyword: BW October 17, 2005 | BusinessWeek|7

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