Netlog, who claim to be “the first truly pan-European social networking site,” have had a couple of changes recently.
Firstly they’ve rebranded themselves from FaceBox (perhaps the fear of legal action from FaceBook or confusion between the two might have been behind it), to a more relevant Netlog.
Continue reading NetLog Euro Social Network Gets €5m For Future Expansion
Networking powerhouse Cisco is to buy the Web conference company WebEx for $3.2Bn.
WebEx is listed on the NASDAQ (WEBX) and is reported to be the leader in its field. They offer a ton of different products, all based around sharing information between a number of remote parties, with the majority of them featuring shared video.
Cisco is actively spreading the number of products and business areas that it covers – they have to really as companies like China-based Huawei move on to Cisco’s previously-core network businesses.
Scientific Atlanta, the maker of TV Set Top Boxes, was a previous purchase. In November 2005, Cisco slapped down twice as much cash for that one – $9.6Bn.
Strangely enough bringing WebEx into the Cisco fold is at the opposite end of the content creation spectrum.
As Charles Giancarlo, Chief Development Officer at Cisco, concisely put it, “As collaboration in the workplace becomes increasingly important, companies are looking for rich communications tools to help them work more effectively and efficiently.”
WebEx is currently focused on business applications, but it’s highly likely that nearly everyone will be carrying out video conferences in the future as travel becomes more expensive and general restrictions come into effect.
The one-time force for evil (in the eyes of the film industry), Bit Torrent has had a good couple of days, first they sign a distribution deal with some of the major film and TV companies, then today they announce that they’ve closed another funding round.
Content deal
The content deals add to those they signed back in May this year and will provide films with a Download-to-Own (DTO) basis or for rent on a Video-on-Demand (VOD) basis.
Pricing for them hasn’t been announced, as they plan to disclose pricing details closer to the time of the launch of their online retail marketplace, which is set for February 2007.
It’s not just the old junk that the studios don’t care about anymore that will be available. The majority of the deals include new film releases day-and-date with the DVD release, popular TV series, deep catalogue titles and cult classics.
The exception is Palm Pictures, as they plan to be the first studio to utilize the BitTorrent platform to release full-length feature films before the theatrical and DVD release dates.
The most recent partnerships are with 20th Century Fox, G4, Kadokawa Pictures USA, Lionsgate, MTV Networks, Palm Pictures, Paramount Pictures and Starz Media, which build on the previous deals with Warner Bros. Home Entertainment, Egami Media, Hart Sharp, Koch Entertainment and The Orchard.
What about the money!
Today the series B funding has been announced (although TechCrunch scooped it a couple of days ago). They’ve raised $20m from new investor Accel Partners leading the round, with participation from initial investor DCM.
Given Bram Cohen wrote the majority of the code for BitTorrent himself, what, you may ask do they need the money for?
Almost to prove how corporate they’ve become, BitTorrent (BT) use the cut and paste phrase that it will “support the company’s growth, building on its leadership in high-performance content distribution on the Internet.” So more jobs for people will large salaries it sounds like.
What is more interesting is the longer terms plans for BT. They intend taking the technology, using it to “power other websites with the performance and efficiency of BitTorrent’s content delivery service.” It’s words like these that will get companies in the content delivery game worried.
Not just to the PC
BitTorrent signed a deal with a number of consumer electronics companies back in the end of October. ASUS, Planex and QNAP are among the first CE manufacturers to implement the BitTorrent download manager into digital home devices. ASUS and Palnex will build it into a number of their routers, QNAP into their NAS Servers.
This alone is a major change for the once-feared BitTorrent – it takes them away from the computer and closer to the TV in the lounge, while eliminating the need for the user to get involved with setting up and running it.
Microsoft have finally woken up to the fact that people aren’t using their Web server product, Internet Information Server.
Un*x-based Web servers rule the roost with the majority of commercial hosting companies, for a couple of reasons.
First is cost – Apache is free, as is Linux that it runs on, where as the Microsoft option requires a copy of Windows Server which retails for around $1,000.
Another is that many of the applications that are run on the Internet, and are freely available, use the programming language, PHP – twenty-two million Web sites currently. PHP is widely know as running slowly on IIS.
Microsoft have now signed a deal with Zend Technology to get PHP running faster, more reliably and increasing its stability. The deal covers Windows Server 2003 and the upcoming version Windows ‘Longhorn.’
To get the PHP working efficiently on their Server products, Microsoft will develop a version of FastCGI them. They will give away.
Microsoft will be excited with the comments of Andi Gutmans, co-founder and chief technology officer at Zend, “Since our preliminary work with Microsoft, we have already seen a better than 100 percent performance gain with some PHP applications on Windows Server 2003.” Good start.
Clearly this is great for Zend, a major mover in the PHP-world, as we suspect that they’ll be getting bundles of money for their troubles. Actual details of the financial arrangements were not disclosed.
As to whether anyone will actually choose to run PHP on Windows Server, when they can get it running for free on Linux – What do you think?
As we\\’d previously as conjecture, Google has announced that it will be buying YouTube. The price is slightly above the rumours at $1.65Bn (€1.31Bn, £0.88Bn). It\\’s an all stock deal, with no money changing hands.
YouTube has been a fast-growing phenomenon that only started in February 2005, a mere 19 months ago.
Formed by some of the people who were in another similarly sale-price company, PayPal, which went for $1.5Bn to eBay, including Roelof Botha the former CFO of PayPal, who fortunately became a partner at VC company, Sequoia Capital partner. The other two were Chad Hurley and Steve Chen. Not much has been heard about them, so it\\’s worthwhile watching the Charlie Rose interview with them.
History (short)
In the early days, many people couldn\\’t understand how they would survive long-term given the speed that they were burning through money.
Back in November last year, long before their explosion to playing 100m videos a day, YouTube was shifting 8 terabytes a day. That kind of bandwidth is very expensive.
The founders have a fair few quid in their pockets after the PayPal sale, but in November 2005 they raised $3.5m from Sequoia Capital, which was followed up in April 2006 by further funding of $8m was also supplied by Sequoia.
See how Chad and Steve break the news to their users.
Given the sale price (don\\’t forget $1.65Bn), the return for the investors is tremendous. As the company is closely-held, ie it\\’s shares aren\\’t publicly available, we don\\’t know how much was put in by the funders, but taken at face value, the $13.5m that was put in by Sequoia returned upto 100 times their investment. Not bad for 19 months.
Copyright issues
There\\’s been much controversy within media companies as they\\’ve objected to their content being uploaded to YouTube. Given that video has been uploaded at the rate of 65,000 a day, the only way that YouTube has been able to stay on top of new copyrighted material is by removing it when complaints have objected.
Google Video has been less concerned with similar pieces of video, probably due to their financial muscle and less need to feel threatened by the media companies legal departments. Expect a long list of deals like Warner Music\\’s
Of course, most of the material on YouTube is people making their own videos and uploading it, a few of which have become stars on the service and a couple mega-stars being signed by Hollywood agents.
For the latest (brief) views on the deal of Hurley and Chen have just hit Reuters.
HomeChoice have agreed to be taken over ISP Tiscali in exchange for 11.5% of their new owner.
The tenacity of HomeChoice has always impressed us. They’ve been going for years and have just refused to give up. Getting started in the days when Video on Demand meant asking to rent a video from your local video rental shop, they’ve been through quite a number of investment rounds, some so severe that the investors ended up with nothing.
Never hitting big numbers, the writing has been on the wall for them, what with Sky getting into broadband, NTL re-enlivining themselves with Virgin mobile and BT Vision on the horizon.
HomeChoice has been settled on around 45,000 subscribers for quite a while now as they’ve been restricted to operating within London and some areas to its north. They just haven’t had the investment available to unbundle anymore exchanges beyond the 145 they have to spread their service. Their original expansion was hampered by the huge cost BT used to charge them for the Visionstream service they needed to run the service.
The last murmur about HomeChoice was that Sky was casting their eye in their direction, but we suspect that this was floated by the company itself to try and flush potential suitors out of the wood work.
As to why Tiscali has bought them …
It’s likely that Tiscali feels they need to move fast to avoid becoming sidelined by the other companies putting themselves forward as the Big Boys in the ISP/IPTV/Phone market.
By buying HomeChoice they’ll start with something they can build on, rather than having to start from scratch, giving them a time advantage. This is made very real by gaining 145 unbundled exchanges within London taking Tiscali to a total of 330 country-wide.
Homechoice has also spent quite a lot of effort in the last year building up their content relationships, creating niche programming.
As to the backend iron that HomeChoice is using to power the VOD – it may be that is getting a bit long in the tooth these days.
Don’t forget Tiscali don’t actually have to put their hands in their pockets either, just swap stock.
Steve Case, co-founder of AOL, now ex-chairman of AOL-Time Warner, has said he was sorry for the merger between AOL and Time Warner. It is widely regarded as a deal that didn’t go very well, leading to internal wrangling and huge amounts of money being knocked of share values.
In an interview with well known US journalist, Charlie Rose, Case said he still believed the ‘idea’ of bringing together Time Warners content and broadband infrastructure, RoadRunner, with AOL digital expertise was right.
He resolved that “Ultimately it comes down to execution,” and that in this case that hadn’t been successful. Case said he missed the ‘power’ to execute what he thought was right.
When questioned further about it, Case then refered to his current company, Revolution, saying that they will only enter into agreements where they have a controlling interest, so they can “Take a long term view.” We take this as implying that this wasn’t the case when dealing with Time Warner.
When Rose asked him straight, “Was it a good idea, or not?”, Case gave a half smile and then laughed, trying to avoid a direct answer.
When pushed, Case said from the point of shareholders of the two companies, employees & customers – it didn’t go as he’d hoped, it had been a disappointment and a source for frustration. Given the wide range of those included by Case, we don’t know who else might be disappointed who wasn’t included.
Given the stark choice of, “Sorry, Yes or No?”, Case said, “Yes I’m sorry I did it.”
Watch the video. The section relevant to this story starts at 30 minutes in.