All posts by Jesse Winter

GoPro needs to innovate to survive: analyist

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Comparison of GoPro and Apple stocks over the past month. by jwints on TradingView.com

Action camera company GoPro is going to have to “innovate like hell” if it wants to survive a potential marketing war with one of the largest companies in the world.

The company’s stock price took a major hit, dropping 12 per cent two weeks ago when news broke that Apple Inc. had filed patents for wearable, remote-controlled cameras similar to the ubiquitous sports action cams that GoPro is known for.

“Because it’s a small company that’s living on its innovation, GoPro’s got to try and innovate like hell or else it just dies,” said business analyst and Carleton University professor David Cray.

It might be doing just that. Last week GoPro announced that it is partnering with the NHL to provide the players’ point of view in real time on the ice. That constitutes a major breakthrough for the company’s technology, which so far hasn’t included live high definition video streaming.

Cray says the NHL partnership announcement was likely timed to reassure GoPro investors that the company still has lots of fight left in it.

“They’re probably also doing something else,” Cray said. “GoPro might be saying ‘Look, we’re still out ahead in this race so if you want to buy us it’s going to cost you a lot of money’”.

“That happens a lot, especially with technology companies. At first it’s sort of ‘Hey, we’re the rebels, we’re going up against Google and Microsoft and whatever,’ but then somebody comes along with a fistful of money and the implicit threat that if you don’t sell us your technology we’re going to hammer you,” he said.

Neither GoPro nor Apple returned requests for comment. Both companies have remained tight-lipped about the potential camera showdown.

The battle for action cam supremacy looks to be a David-and-Goliath dual. Apple is 241 times bigger than GoPro, pulling in $18 billion in profit last quarter alone compared to GoPro’s $14 million.

But when it comes to research and development, GoPro out-spends Apple five-to-one as a percentage of each company’s profits.

Right now, GoPro controls almost the entire action-camera market, in part through aggressive marketing strategies. It’s cameras have put viewers in the cockpit of fighter planes, provided a literal eagle’s eye view of base-jumpers and documented the world’s highest-ever skydive by Felix Baumgartner in 2012.

The patents Apple filed make specific mention of GoPro cameras, prompting speculation that the company isn’t just entering the wearable-camera market; it intends to take direct aim at GoPro much like it did when it took over the smartphone market from Blackberry with the first iPhone 2007.

If GoPro is going to avoid a similar fate, it needs to keep setting the action-camera agenda, Cray said. And that means not only keeping up on the R&D front, but also the marketing side of things.

With that in mind, a look at GoPro’s latest quarterly results should reassure investors, Cray said.

Last quarter, the company plowed 89 per cent of its profits back into operating costs, which have almost doubled since last year. That might seem worrying, but the it’s because the company is taking on a lot of new staff, something Cray said is a sign GoPro intends to step up the fight.

Since first going public in June, the company’s stock price has doubled, and aside from the hiccup over the Apple announcement, it has continued its upward trend.

But if it comes down to a battle for the action camera market, Cray said GoPro’s chances of holding off the Apple juggernaut are slim at best, no matter how innovative it is.

Rain, not overflowing sewers, closes Ottawa beaches

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Westboro Beath saw high spikes of E.coli this summer, and was closed frequently
Westboro Beach saw high spikes of E.coli this summer, and was closed frequently

The city has dumped more than 215 Olympic-sized swimming pools worth of human waste and storm water into the Ottawa and Rideau rivers so far this year.

More than half of that got dumped on one day back in June, when 324,030 cubic meters of “combined sewer overflow” was released.

It’s a problem the city has been trying to tackle since 2006, but progress has been slow. The Ottawa River Action Plan calls for $195 million to build giant underground vaults to hold sewer water when heavy rain would otherwise trigger overflows. That storage facility was supposed to be finished by 2013 but the city has yet to actually apply for the federal funding it needs for the job.

Ottawans might also remember the rash of beach closures due to high E.coli counts this past summer. In July, when Mayor Jim Watson was campaigning for reelection, he said that getting the underground vaults finished will reduce the number of beach closures from high E.coli. His sentiments are backed up by the city’s latest draft climate change plan and he even had volunteers collecting signatures on a petition supporting the river action plan.

But he’s wrong. An analysis of Ottawa’s rainfall, sewer overflow and beach closure data shows that there is very little relation between sewer overflows and beach closures. When you consider that only one of the city’s four beaches is even downstream of the sewer overflow release points, Watson’s logic appears questionable. City hall did not respond to a numerous requests for comment.

Rainfall vs E.coli count at Ottawa Beaches
Rainfall vs E.coli count at Ottawa Beaches

Screen Shot 2014-11-28 at 6.38.59 PM

But if it’s not coming from the sewers, where is all the E.coli at Ottawa’s beaches coming from?

Rainwater. Or, more specifically, runoff from heavy rainstorm events. The data shows that on June 24 there was a huge spike in rainfall, and a corresponding spike in E.coli numbers. The rain also triggered the largest sewer overflow event of the summer, but over the next two weeks the Westboro and Mooney’s Bay beaches saw two more equally high spikes in E.coli without the expected spikes in sewer overflows. Even Petrie Island’s beaches, which are downstream from the sewer outlet points, were closed less often than Westboro, Mooney’s Bay and Britannia.

“It’s from human waste, but also birds, dogs and other animal sources. E.coli is also getting into the water in heavy rainfall events from what are called ‘non-point’ sources, which is basically run-off from the land,” said Jesse Vermaire, an expert in water ecology and climate change at Carleton University.

Think of it like this:

Cities are dirty. Streets and sidewalks are covered with grime and dirt, spilled chemicals like windshield washer fluid and gasoline, animal and pet feces. There’s a reason you take your shoes off when you walk in your house.

When it rains in a city, Vermaire explained, the water can’t soak into the ground like it does in a forest or field. All of that filth is washed over the sealed-up parking lots, roads, buildings, and alleys, flushed into the storm drain and right into the river.

When it rains like it did in June, dumping 56 millimeters of rain onto the city in 24 hours, it’s like pressure washing the concrete jungle. And those heavy rain events are likely to be a lot more common. As climate change shifts our weather patterns, “there’s a greater probability of getting larger surface storm events,” Vermaire said.

“The average annual rainfall might not change, but there will be larger one-day rainfalls and longer droughts between rainfalls based on climate change,” he said.

Screen Shot 2014-11-28 at 6.40.49 PM

The city has been able to reduce sewage overflow events and volumes since it began working on the problem in 2006. Installation of real time monitoring in 2008 was especially helpful. But even though Mayor Watson likes to tout the river action plan’s expensive holding tanks as a solution to the beach closure problem, the real answer lies in almost the exact opposite direction.

Carleton students and Glebe residents might have noticed the traffic calming sidewalks being extended along Sunnyside Ave. When they’re done, those new sidewalks will also have new gardens adorning them, though they aren’t just for decoration.

“Rain gardens is a much nicer term for them, but they’re really a form of bio-retention,” explains Darlene Conway, who manages the city’s storm water management strategy.

“The ORAP is a huge umbrella project that’s meant to address the sewer overflows, but it doesn’t address the other forms of pollution,” she said.

The gardens are part of a pilot project that’s testing bio-retention as a way to help deal with citywide water runoff. The idea is that the gardens will soak up rainwater that is funneled to them, allowing it to be slowly released over time instead of in a torrent. They also act like filters, collecting particles and some pollutants on site.

“Twenty years ago the thinking was ‘well, we’ve got the water all collected in one place, in our pipes and sewers. Let’s put something at the end of the pipes to treat it,’” Conway said.

“Now we’re starting to see a new approach which is to not centralize it. We’re looking at things like green infrastructure that doesn’t cause water to collect and run off into storm drains or rivers. We’re trying to let it dissipate the way it would have before there were developments and pavement,” she said.

The rain gardens are just one idea. Others include using paving stones instead of asphalt and other forms of “low-impact development” as the city repairs old streets or designs new projects like Lansdowne. The long-term goal is to take advantage of the city’s eventual crumbling to rebuild it in a way that isn’t as environmentally damaging. Essentially, the idea is to slowly make over the concrete jungle into more of a sponge, allowing it to absorb, treat and slowly release water the way a forest or field would.

As for the ORAP and its expensive holding tanks, no one is arguing that dumping raw sewage into the Ottawa River is a good idea.

“It’s extremely important to not be dumping human waste into the Ottawa River, and I think it’s great that they’re investing in this infrastructure. But from an ecosystem standpoint there’s a lot of other stuff ending up in the river as well that we need to deal with,” Vermaire said.

Police not solving crime equally across Ottawa

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Photo Illustration by Jesse Winter. Police success rates for solving crimes like theft and robbery vary widely across the city.
Photo Illustration by Jesse Winter. Police success rates for solving crimes like theft and robbery vary widely across the city.

While you’re four times more likely to have your laptop stolen in Bay ward than you are in Osgoode, you’re also almost seven times more likely to get it back.

An analysis of data from the City of Ottawa shows that the farther you live from the downtown core, the less likely the police are to solve a crime that you report.

The widest disparity is for thefts valued at $5,000 and less. In the city centre, the chances of police recovering your property hover between 35 and 50 per cent, with Bay ward tipping the scales at 53 per cent.

In the rural wards, theft solvency drops severely. In Osgoode, victims of theft have only an eight per cent chance of seeing their belongings again.

Those aren’t good odds, but city council candidates in the area say they aren’t overly concerned.

“Petty theft isn’t much of an issue in our ward. We don’t get a lot of it here because there aren’t any drug users stealing stuff to fence,” said Liam Maguire, a city council candidate for Osgoode.

“We’d like to see more police presence in terms of clamping down on speeding and traffic, but if you steal a laptop in Osgoode, you’re more likely to be caught by your neighbors than you are by the cops,” Maguire said.

Kim Sheldrick, another candidate for Osgoode, agreed.

“Some people do have that old country mentality that we look out for each other, but I’d like to see more patrols out here,” she said.

“Where I live, I’m much closer to the edge of the city limits than I am to downtown, so it’s not necessarily people from Ottawa who commit crimes here. It could be someone from out of town,” Sheldrick said.

The city’s police services board refused to comment on this story. The Ottawa Police did not return a request for comment by press time.

Minor theft accounts for around half of all the crime reported in Ottawa in a given year. Over all, property crime is decreasing in the city. There was a 16 per cent drop in thefts both over and under $5,000 in 2013, according to the Ottawa Police annual report.


Although occurring at much lower rates than minor theft, there’s also a wide discrepancy in the solvency rates of robbery between different areas of the city.

As Ottawa police chief Charles Bordeleau told the police services board last year, those crimes tend to increase in the springtime.

“The most frequently targeted items continue to be newer smartphones like iPhones,” Bordeleau said.

“Like they do every year (in the spring) many of our robberies have been occurring in high-traffic areas near school campuses, near bus routes, where people often use or check their devices,” he said.


Like the police success rate, the overall crime rate also drops the farther you get from the city centre. Typically there is a higher police presence in problem wards like Rideau-Vanier and River, where the crime rate is triple that of the rural areas. Having more police on hand in high-crime areas might help explain the discrepancy, said Jean Johnston-McKitterick, another candidate in Osgoode.

But Johnston-McKitterick said even with the low crime rates in rural wards, as the city grows, people will eventually have to give up some of their innocence.

“Lots of us leave our cars open because we are trusting,” Johnston-McKitterick said.

“But in June there was a group of kids going around stealing things from unlocked cars. Sometimes we’re a little behind on our first responders’ times, and I’d like to see that improved,” she said.

Hate graffiti on the rise in Kitchissippi

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Hate graffiti in Kitchissippi on the rise

By Jesse Winter

Swastika

Bart Everson/ Flickr Creative Commons

Kitchissippi is leading the city in complaints of hateful graffiti this year, far outstripping any other ward in Ottawa.

An analysis of data from the City of Ottawa shows that with 18 reports so far this year, the neighborhood west of downtown is on pace to beat its mark from last year, with almost four times as many reports of hateful vandalism than anywhere else in the city.

Within the ward, the vandalism is mostly centered in Hintonburg. The latest incident was reported just last week, according to Hintonburg Community Association president Matt Whitehead.

“The community has really been monitoring it. I saw someone Tweet about it, but by the time I got there it was already down, in about 20 minutes,” Whitehead said.

Hateful graffiti made headlines in April when swastikas, “hail Hitler,” and other Nazi slogans were scrawled across a highway underpass in Hintonburg. At the time it appeared to be an isolated incident, but the city’s data suggests otherwise.

Graffiti chart

Whitehead said police are investigating the on-going concern. Ottawa police did not return calls for comment by press time, but Whitehead said he has a working hunch of his own.

“The swastikas and everything, it’s really poorly written. What I’ve seen of it is barely legible. It doesn’t seem to be someone trying to incite anything. I think it could be just a couple of kids trying to cause a stir,” he said.

The numbers might support that theory, said Leo Russomano, a lawyer and hate crime expert from Carleton Univeristy.

“The numbers are small enough to suggest that it could be the same group of people, not indicative of a larger trend. Actual hate speech is a relatively rare crime,” especially since the complaints are so localized, Russomano said.

According to the data, the citywide number of complaints about hateful graffiti has been trending downward over the past five years. Kitchissippi, on the other hand, has seen a sharp jump in the past two years. In 2010 that area of the city had only two complaints about hateful graffiti.

If that spike is the work of one culprit or a small group, that could complicate things, Russomano said.

First of all, catching someone in the act is almost the only way to prove who was behind it, he said. There’s also the issue of proving intent. In order to prosecute a hate crime, the Crown must prove that the graffiti was intended to incite fear in a particular group. The Nazi slogans in Hintonburg certainly lean that way, but the fact that they are sprayed on public property, not targeted at Jewish organizations or businesses is also a factor. Charging the wrong person can be very damaging, he added.

In 2012 Russomano represented Joe Lendore, an Ottawa youth who was charged with mischief in connection to swastikas spray-painted on a CF-100 fighter plan at the Canadian War Museum. Evidence against him was slim, and the charges were ultimately dropped, but not before Lendore’s name was dragged through the mud, Russomano said.

“This kid’s life was totally messed up because of it. All the cops had was a video of him looking at the graffiti,” Russomano said.

“A hate crime is a very serious, and very damaging event. It’s incredibly hurtful to the community, but the flip side is that it can also be very stigmatizing to those who are charged if they are actually innocent,” he said.

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