Business

Changes to business digitisation brings

  • Kazaa Owners Settle Lawsuits Globally

    Kazza Owners Settle Lawsuits GloballySharman Networks, the company that distributed the file-sharing software, Kazaa, has finally come to an agreement with the media companies that have been chasing them for years throughout courts around the globe.

    The details of the settlement was covered by secrecy clauses, but the Associated Press is reporting the settlement figure as $115m, which they say has mostly been paid by Sharman already. The media companies will drop all of their law suits.

    As part of the settlement, Sharman has agreed to discourage online privacy using ”all reasonable means.’ How this is be achieved is unclear. Kazaa was specificaly designed to be distributed, making it’s very hard to have any control over the network. It’s design would make the use of filtering software, which would remove or block copyright material, difficult.

    Being upbeat Nikki Hemming, CEO of Sharman Networks, enthused, “This settlement marks the dawn of a new age of cooperation between P2P technology and content industries which will promise an exciting future for online distribution in general and Kazaa users in particular.”

    Kazza Owners Settle Lawsuits GloballyIt’s understood that the settlement doesn’t require the media companies to provide their content to Kazaa, but equally it doesn’t forbid Kazza carrying copyrighted material, if done ‘legitimately.’

    Given the software has been downloaded over 398 million times to date, the media companies could well see the benefit utilising the P2P network.

    There was some shock in November last year when Grokster, who like Sharman made software for distributed file-sharing networks, changed their minds and closed down their service.

  • Win A Copy Of The Long Tail Book

    Win A Copy Of The Long Tail BookWe’ve just published a review of The Long Tail, Chris Anderson’s new book

    The Long Tail is an important manual for the new economics of the Internet and digital culture. As well as demystifying the numbers it provides an essential guide to how to navigate a world where everything is available, all the time.

    High praise and we think that it’s a sufficiently important book that you should have your own copy.

    We chatted to the lovely people at Random House and they’ve kindly furnished us with five copies.

    All you need to do is run through our Readers survey, which should only take on 5-7 minutes of clicking.

    We will of course also be so very grateful – which should give you a lovely glow inside.

  • The Long Tail Book Review (95%): Why The Future Of Business Is Selling Less Of More

    The Long Tail Book Review: Why The Future Of Business Is Selling Less Of More
    by Chris Anderson

    Published by Random House (UK), Hyperion Books (USA),

    Retail price – UK £17.99, USA $24.95

    Buy the book from Amazon US or Amazon UK
    Buy the audio book from Amazon US

    Summary
    The Long Tail Book Review: Why The Future Of Business Is Selling Less Of More (95%)The Long Tail is an important manual for the new economics of the Internet and digital culture. As well as demystifying the numbers it provides an essential guide to how to navigate a world where everything is available, all the time. Score: 95%

    Review
    Every once in a while a book comes along that completely captures and defines a particular period. Nicholas Negroponte’s Being Digital defined the blossoming digital culture of the mid 90’s, now The Long Tail shows how the Internet will radically change our habits and behaviour.

    Chris Anderson illustrates how our buying habits have been shaped by the economics of big business, creating the blockbuster culture; the selling of a narrow range of products to the biggest possible group of consumers. Anderson shows how the Internet, through companies such as eBay, Google and Amazon, radically changes that, allowing us to be more exploratory and specific about what we buy.

    “The theory of the Long Tail is that our culture and economy is increasingly shifting away from a focus on a relatively small number of “hits” (mainstream products and markets) at the head of the demand curve and toward a huge number of niches in the tail. As the costs of production and distribution fall, especially online, there is now less need to lump products and consumers into one-size-fits-all containers. In an era without the constraints of physical shelf space and other bottlenecks of distribution, narrowly-target goods and services can be as economically attractive as mainstream fare.”

    Anderson provides and eloquent and detailed analysis of various aspects of Internet culture and business and illustrates how the explosion of niche markets and filtering tools will allow us to zero-in on things that interest us, potentially shattering the hold that large manufacturers and retailers have exercised since the mid 20th century.

    The Long Tail Book Review: Why The Future Of Business Is Selling Less Of More (95%)The Long Tail effect is not limited to buying and selling, the process by which the book was written is a case in point. Anderson (editor in chief of Wired magazine) published the original Long Tail article in Wired back in October 04. The article rapidly became a hit and mushroomed into the Long Tail blog which Anderson used to publicly research and test his theories. Shortly before the publication date earlier this month, Anderson released copies of the book to bloggers across the globe for review. The process is a perfect example of a product being tested and developed publicly, thereby generating enough word of mouth interest to create a ready market for it. The strategy was proved a resounding success by the book’s appearance in Amazon’s top ten non-fiction list on its publication day.

    Although The Long Tail is a business book, it is also about culture in general and how it’s changing. Freed from the constraints of the blockbuster culture, the consumer is able to delve into niches he never knew existed and also to contribute in a way that was not previously possible. The success of social software services such as Flickr and YouTube has allowed the audience to create and share their own material generating a genuinely new, interactive media which is actually competing in some respects with mainstream broadcast media.

    The Long Tail Book Review: Why The Future Of Business Is Selling Less Of More (95%)Some have taken this to mean that Anderson is sounding the death knell for blockbusters, something which he was at pains to counter on his blog, “Hits Aren’t Dead” he said, “I never said they were. What is dead is the monopoly of the hit. For too long hits or products intended to be hits have had the stage to themselves, because only hit-centric companies had access to the retail channel and the retail channel only had room for best-sellers. But now blockbusters must share the stage with a million niche products, and this will lead to a very different marketplace.”

    While not all the ideas in The Long Tail are Anderson’s own, like any good journalist, he manages to articulate the complexities of a difficult subject in a lucid and entertaining style.

    Summary
    The Long Tail is an important manual for the new economics of the Internet and digital culture. As well as demystifying the numbers it provides an essential guide to how to navigate a world where everything is available, all the time.

    Score: 95%

    Published by Random House (UK), Hyperion Books (USA),

    Retail price – UK £17.99, USA $24.95

    Buy the book from Amazon US or Amazon UK
    Buy the audio book from Amazon US

  • AOL’s Steve Case Sorry for Time Warner Deal

    AOL's Steve Case Sorry for Time Warner DealSteve 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.

    AOL's Steve Case Sorry for Time Warner DealWhen 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.

  • Google Video: Advertising Sponsorship

    Google Video: Advertising SponsorshipGoogle Video has been serving videos to the Internet population for over a year and a half now, both paid download via their Video Store.

    Today, when researching a story, we noticed that they’ve also brought in a third model – sponsored playback, a new one to us. Never let it be said that given an opportunity to raise advertising dollars, Google aren’t at the forefront.

    Above the video being played back is a banner containing the logo of the advertiser (in this case HP), a couple of lines of advertising copy and a couple of links.

    How the financial on this works isn’t clear, but we’d assume that the owner of the contact will receive some payment from the sponsor, via gogole, for each video that is watched, in a similar way that the record companies get paid a small number of pennies when a people play their artists music on a monthly music subscription service.

    One interesting feature is that the video is still available for purchase, as the version that is shown is at a lower quality than the for-sale version. Google call the for-free version Preview, although for our purposes, retrieving information from the programme, this is all that we’d need. You could see that other types of programs would benefit from higher resolution.

    Google Video: Advertising SponsorshipClicking on Watch their Ad link opens a new browser session and plays the video advert from … Google Video. All very neat.

    It is interesting to note that the cost from Google, in this case 99c, is significantly less than the price when purchased from Charlie Rose’s own site, which is available on DVD or VHS at at least $30.

    What is powerful about this rendition of advertising with video content is that the brand is associated with the content, in our case a well known and respected US journalist, and the viewer is given the opportunity of watching the content. They aren’t forced to watch it, as we commented about at the end of the recent review of GoTuit, and are they given the opportunity to stop watching it whenever they feel like it.

    Example of Google Video being sponsored by an advertiser.

  • Sky Buys Mykindaplace: Murdoch Grabs More Of The Web

    Sky Buys Mykindaplace : Murdoch Buys More Of The WebThe Murdoch empire continues to buy to part of the online world, as BSkyB announce the full purchase of Web publishing and design company, mykindaplace, a company that they’d invested in 2000 when they previously dabbled in buying bits of the Internet.

    Founded in 1999, mykindaplace has a couple of publications aimed at teenagers, one for girls, and another boys, monkeyslum, that launched in September 2004. At the other extreme end of the age range, they also published livingit in January 2006 aimed at those 45+.

    With the purchase of mykindaplace, Sky will also gain Burst Interactive, which currently handles the skyone.co.uk site for Sky.

    Sky Buys Mykindaplace : Murdoch Buys More Of The WebJames Baker, Managing Director of Sky Networked Media, who will have the mykindaplace teams under his power, invented a new term to us “super-serve,” when he said “Working even more closely with mykindaplace will allow us to accelerate the expansion of our web portfolio. We intend to super-serve audiences in key content genres and target new users with a suite of content-rich sites thatdeepen customer relationships and drive new revenue.”

    Sky who already owned 49% of mykindaplace bought Eurovestech shareholding in Mykindaplace for £0.5 million cash back on 30 June. We understand that Eurovestech owned 5.6% which they bought into at the same time as Sky back in April 2000. At the time of going to press, it isn’t clear who owned the remaining shares, although it is understood that Freeserve invested in the company in 2000 as well.

  • SMG And UTV Merger On The Cards?

    SMG And UTV Merger On The Cards?Following the surprise resignation of SMG’s Chief executive Andrew Flanagan, the pieces are in place for consolidation of the Scottish and Ulster media outfits that provide the Celts with their ITV services.

    SMG’s share price has been underperforming and in this time of ‘challenging market’ conditions in the advertising sector, any opportunity to trim costs will be welcomed by city investors and commentators alike.

    SMG, although mainly associated with television, has a diverse media portfolio including the cinema advertising outfit Pearl and Dean along with Virgin Radio. The two look a good fit, the well managed UTV stable owns the Wireless group that includes the successful Talksport station and is becoming active in what they refer to charmingly as New Media. UTV had been named as possible buyers of Irelands’ commercial broadcaster TV3, but this was ultimately unsuccessful, it may now look to expand in Scotland.

    SMG And UTV Merger On The Cards?With many predicting the imminent departure of Charles Allen, ITV, a shareholder in SMG has troubles enough of it’s own to be ruled out of a takeover.

    Although it would have a battle to justify expansion north of the border now, given time the advantages to all concerned mean a single ITV is likely to be the final end-game.

  • Yahoo! Scoops Motorola Deal

    Yahoo! Scoops Motorola DealYahoo! and Motorola have cuddled up in their synergetic beds and fluffed up their co-branding pillows to announce a new deal that will see Yahoo! Go pre-installed on millions of Motorola handsets next year.

    The deal sees the search engine further consolidate their market-leading position, with the company already having a deal with Nokia under their belts.

    Thanks to an exchange of besuited handshakes earlier this year, Yahoo’s mobile services will also come pre-installed on many of Nokia’s new 60 series and “N” class multimedia phones.

    Yahoo! Scoops Motorola DealWith two of the mobile phone big boys onboard, we reckon there’s been a fair amount of backside-kicking going on at arch-rivals Google, who must be well miffed to see Yahoo grab such a huge chunk of the market.

    With the two dominant mobile handset players now signed up to Yahoo, Google will have no choice but to seek out second tier manufacturers, or dream up a new take on the mobile market.

    Yahoo! Scoops Motorola DealWith more and more phones offering internet access, punters want to be able to easily access services, search the web and grab their mail on the move.

    The Yahoo! Go software includes Yahoo! email, search and address book with a simplified interface designed for small screens.

    With Yahoo! having their mobile software pre-installed on the two biggest handset manufacturers, the company are set to dominate the market, if only for the short term while the likes of Google and MSN work out a response.

    Yahoo! Go

  • Google Results: Sales Up 77%, Profits Up 20%

    Google Results: Sales Up 77%, Profits Up 20%There’s been tons of financial results coming out around now, but we’ve spared you from them – we’re nice like that. Today we felt it was worth an exception.

    Always interested in the growth of Google, we thought we’d bring you details on their second-quarter results.

    Climbing ever higher, Google reported revenues of $2.46 billion for the quarter ended 30 June 2006.

    Their revenues are broadly split to three areas; from their own sites; from partners sites, and International revenues.

    Google sites have increased 94% over the same quarter in 2005, to $1.43 billion. Partner sites brought in $997 million, again up 58% from 2nd quarter 2005. International’s account for 42% of their income, up from 39% from the same quarter last year.

    Having a dig through their figures reveals some interesting info – honestly, it is interesting.

    Google Results: Sales Up 77%, Profits Up 20%As is well known, one way Google does so well is by getting other sites (partners) to carry their clients advertising for them (of which Digital-lifestyles is one). In accounting-ese/jargon, they refer to it as Traffic Acquisition Costs or TAC. These increased to $785 million, up from $723 million in its first quarter. The TAC (see how quickly you can get into the swing of this jargon) remains at 32% of their advertising revenue, giving a rough understanding that Google take 68% of these ad earnings – pretty healthy in their favour.

    The cost of operating their extensive, world-spread data centers and to a lesser extent, processing credit card charges has increased to $204m. That’s a lot of computers, but remains at 8% of revenue.

    For a company that ‘doesn’t advertise,’ they’ve been lashing the cash on promotional work, $49m, or which $24m was ‘related to certain distribution deals,’ which we imagine is their deal with browsers like Firefox.

    The other little nugget is the amount of wonga they’ve got sitting around. Cash, cash equivalents, and marketable securities were sitting at $9.82 billion.

    It’s telling, that Microsoft announced fourth-quarter profit declines, with plans to buyback $20Bn of their own stock.

  • YouTube Sued For Copyright Abuse

    YouTube Sued For Copyright AbuseYouTube is being sued by a video news service, Los Angeles News Service for infringing the copyright of their video material, in particular, the footage of the 1992 LA riots, including the horrific attack on a truck driver.

    They are asking the court for $150,000 per violation and an injunction barring any further use of their material.

    Los Angeles News Service’s (LANS) co-founder, Bob Tur, is credited with creating helicopter news-gathering, when it televised a car chase in 1992, they were also the first to follow OJ Simpson in the well-known slowest car chase ever.

    Los Angeles News Service isn’t new to legal action like this. They’ve taken many actions against those who they feel are infringing their copyright, including multiple actions out against news organisations who aired the footage they took of the South Central LA riots in 1992.

    Copyright complaints are normally dealt with by way of a take down notice – the body who claims rights over the footage has their lawyer write to YouTube, informing of an alleged copyright breach, asking them to remove the offending material. Until now YouTube’s approach has been to comply with this straight away, asking questions later.

    YouTube Sued For Copyright AbuseYouTube has made moves to reduce copyrighted material on their sites, including limiting the length of videos that can be uploaded.

    YouTube is pretty powerless to stop people uploading any footage they feel like. Given the sheer amount of footage on there, it just isn’t practical to check the clips before they are shown to the public – hence their strict observance of take down notices.

    If this action is successful, YouTube could be in a whole heap of trouble, given the amount of copyrighted material held on there.

    Not surprisingly, YouTube have taken keen action against footage of the LA Riot on YouTube. Searching for it turns up some results, mostly recorded footage of news coverage as well as some links to LANS video. Attempting to watch these now displays the message, “This video has been removed at the request of copyright owner Los Angeles News Service because its content was used without permission.”

    If you want to see Bob Tur in action in the LA riots, skip forward to 7:30.

    Los Angeles News Service Wikipedia