The Good NET Guide

Posts Tagged ‘digital’

Sometimes it is obvious where the world is headed, but some people and industries become frozen in place and time. They are like the duckbilled dinosaurs happily munching on the still-abundant plants around them when the meteor strikes instead of the small furry mammals underfoot who take cover every day by natural habit. In the print newspaper industry, it’s the same story. Everyone wants to wall off the Web and keep grazing on declining ad revenues.

A week ago, I wrote a post based on a conversation I had with Silicon Valley entrepreneur and investor Marc Andreessen in which he made the case that print media companies would be better off shutting down their print operations now (“Burn the boats”) and move forward unencumbered into the digital age, no matter how painful that may be. That suggestion hit a deep nerve, and continues to do so.

Just yesterday, Allan Mutter, who writes the blog Reflections of a Newsosaur, took exception to Andreessen’s advice. By his estimate, in 2009:

Print-driven newspaper revenues still are running at better than $30 billion a year. It doesn’t take a certifiable Silicon Valley genius to see that no business can walk away from some 90% of its revenue base without imploding.

Mutter’s indignation is typical of the response to the article, even among enlightened newsosaurs. But that is exactly what Andreessen is saying. As I noted in my original post, he is quite aware that “at risk is 80% of revenues and headcount” (or 90%, if you take Mutter’s numbers).

Yes, the Internet media business is much less lucrative than the print side, and may never replace it in terms of the revenues it generates. But Andreessen’s point is that the meteor is on its way and the sooner that media companies start looking for cover, the more likely they are to survive.

He is not trying to be an alarmist. He’s just a realist. In the technology industry, similar disruptions happen all the time. The companies that survive are the ones that adapt and jump onto the next wave of technology before the one they are on finishes cresting. So the real question is one of timing. How long will it take that $30 billion print business to go to $20 billion, $10 billion, or zero? No doubt, it will take years, probably decades. But how long do print media companies wait before they leave their old business behind?

The people who read print newspapers and magazines are getting older and older, while advertisers always chase the young and impressionable. That audience is already on the Web. And they are no longer satisfied with getting all of their news from one or two trusted sources. They get their news from all over the place: newspaper sites, TV news sites, blogs, Twitter, Facebook. More and more, the news is coming to them through their friends and the various streams they consume. The old days of cross-subsidizing political news with ads from the Travel and Auto sections are over.

The longer media companies wait, the bigger disadvantage they will have when they cross over to the other side and find a whole new host of competitors who never had any print legacy businesses to protect. Those competitors right now are blogs and online news hubs who are still furry little rodents in the underbrush, but who won’t stay little forever. The sooner print media companies cross over, the sooner they can be on pure offense. Their online strategies and business models won’t be crippled by any allegiance, or need to protect, to the old print business. If they wait until their online revenues become 25 or 50 percent before they fully commit, it will be too late.

But that is probably what will happen. Media companies are still surrounded by $30 billion worth of leaves that look mighty good.

Photo of duckbilled dinosaur fossil by Ed Schipul .

While California and New York tend to get the most attention as technology hubs, other states are quietly hosting their own vibrant communities around technology and innovation. Utah is one of these states. Utah is home to tech giants Omniture (which was acquired by Adobe for $1.8 billion), Novell, Symantec. And today, Utah is getting its very own startup incubator, BoomStartup, which is a seed capital and mentor-focused investment program for web and software start-ups based in Utah.

Based in Orem, Utah at the Canyon Park Technology Center (the original site of WordPerfect Corporation), BoomStartup is a full-time program that will run from May to August and provides each selected company with seed capital (up to $15,000), mentoring from entrepreneurs and technologists, free office space and resources, and education that takes them through the various steps of getting a tech startup off the ground. For its first rounds, the organization will choose eight startups to participate in the program. Applicants for BoomStartup must have a founding team (two or more individuals) and an idea with a focus on web, mobile, software, and non‐hardware tech. Startups can apply here.

BoomStartup was founded by Utah angel investor John Richards who invested in Omniture. BoomStartup is made up of seven other mentors and investors in the fund. Each investor-mentor has contributed $15,000 in the fund. Investors include Omniture co-founders Josh James and John Pestana, Ralph Yarro, Nobu Mutaguchi, Martin Frey, and Rod Watson.

It’s always great to see investors and former tech executives investing time (and money) in promising startups and ideas. And we are seeing a plethora of innovative startups emerging from a variety of incubators around the country and world, including Y Combinator, TechStars, The Founder Institute, Launchbox Digital and more.

Continued Richards: “This group of investor-mentors has a track record of growing successful businesses and creating innovative technologies. Their expertise and vision will be invaluable to the selected companies, and give them the know how to overcome the obstacles they might confront, whether that be on the business or technological side.”

BoomStartup will host a series of “Meet the Investor-Mentor Days” through the April 12, 2010 deadline; the first will be held Friday, March 12, 2010 at 4 p.m. at the Canyon Park Technology Center, Building J (1401 N. Research Way, Orem, Utah). Investors-Mentors will be on hand to talk with prospective applicants about business, technology and discuss strategies for their businesses.

Legend has it that when Cortes landed in Mexico in the 1500s, he ordered his men to burn the ships that had brought them there to remove the possibility of doing anything other than going forward into the unknown. Marc Andreessen has the same advice for old media companies: “Burn the boats.”

Yesterday, Andreessen was in New York City and we met up. We got to talking about how media companies are handling the digital disruption of the Internet when he brought up the Cortes analogy. In particular, he was talking about print media such as newspapers and magazines, and his longstanding recommendation that they should shut down their print editions and embrace the Web wholeheartedly. “You gotta burn the boats,” he told me, “you gotta commit.” His point is that if traditional media companies don’t burn their own boats, somebody else will.

Andreessen once famously put the New York Times on deathwatch for its stubborn insistence on trying to save and prolong its legacy print business. With all the recent excitement in media quarters recently over Apple’s upcoming iPad and other tablet computers, and their potential to create a market for paid digital versions and subscriptions of newspapers and magazines, I wondered if Andreessen still felt the same way. Does he think the iPad will change anything?

Andreessen asked me if TechCrunch is working on an iPad app or planning on putting up a paywall. I gave him a blank stare. He laughed and noted that none of the newer Web publications (he’s an investor in the Business Insider) are either. “”All the new companies are not spending a nanosecond on the iPad or thinking of ways to charge for content. The older companies, that is all they are thinking about.”

But people pay for apps. Wouldn’t he pay for a beautiful touchscreen version of a magazine? Maybe, if it were something genuinely new that blew him away. It would have to be more than an article with video and graphics though. (I agree, otherwise it’s no better than a CD-ROM).

Oh, and he points out, that the iPad will have a “fantastic browser.” No matter how many iPads the Apple sells, the Web will always be the bigger market. “There are 2 billion people on the Web,” he says. “The iPad will be a huge success if it sells 5 million units.”

Despite trying time and again, Andreessen’s observation is that media companies have no aptitude for technology, nor do they really understand what technology companies do. The one thing technology companies do really well is deal with constant disruption. “Microsoft is going through this right now,” he points out, “Ballmer is not complaining about it.” He’s tackling it head on. So did Intel when Andy Grove gutted it to shift from memory chips to microprocessors. So does every technology company CEO. It is ingrained in the industry Andreessen comes from, so it is just obvious to him: “You are cruising along, and then technology changes. You have to adapt.” Media companies need to learn that lesson fast. To the extent that their products are now delivered and consumed as digital bits, they too are becoming technology companies.

Beyond the iPad, he believes that all the talk once again from big media companies about erecting paywalls or somehow charging for news, articles and video online is shortsighted at best. He comes back to the simple fact that the open Web is where the users are. Talking about paywalls and paid apps is like saying, “We know where the market is and we are not going to go there.” Print newspapers and magazines will never get there, he argues, until they burn the boats and shut down their print operations. Yes, there are still a lot of people and money in those boats—billions of dollars in revenue in some cases. “At risk is 80% of revenues and headcount,” Andreessen acknowledges, “but shift happens.” You’d have to be crazy to burn the boats. Crazy like Cortes.

This $70 Casio Exilim is purple but it’s priced at over $100 just about everywhere else, so let’s just go with it. It looks more pink to me, but Woot says it’s purple and who am I to question Woot?

See more here:
Woot! Casio Exilim EX-S5PE for $70

When Sony’s VAIO W was announced , its $500 price tag seemed a bit steep for a 10-inch netbook . You did get some nice extras, though, like a 1366

The Short Version: Definitely the best sounding consumer-grade in-ear headphones I’ve ever listened too. The price tag matches the sound quality however.

The rest is here: 
Review: Klipsch Image X10i Headset

Earlier today, Apple issued a press release stating that it has filed suit against cell phone manufacturer HTC for patent infringement. No mention of Android or Google was in the press release. But one of the actual legal complaints, which we’ve obtained and embedded below, makes no bones about it. As expected, this lawsuit is about Android. HTC, of course, is one of the largest manufacturers of Android handsets.

The complaint filed in U.S. District Court in Delaware targets: “certain mobile communication devices including cellular phones and smart phones, including at least phones incorporating the Android Operating System (collectively, “the Accused Products”).” By going after the biggest Android manufacturer, Apple is putting all Android cell phone makers—and by extension Google— on notice. Is there any doubt now why Google CEO Eric Schmidt had to resign from Apple’s board last year? The battle lines are now drawn.

At least one of the patents (No. 7,479,949) lists Steve Jobs as an inventor, and describes a method to use a touchscreen as a graphical user interface “detecting one or more finger contacts with the touch screen display” (i.e. multi-touch). The complete list of patents the complaint says are being infringed include:

• Patent No. 7,362,331: “Time-Based, Non-Constant Translation Of User Interface Objects Between States”
• Patent No. 7,479,949: “Touch Screen Device, Method, And Graphical User Interface For Determining Commands By Applying Heuristics”
• Patent No. 7,657,849: “Unlocking A Device By Performing Gestures On An Unlock Image”
• Patent No. 7,469,381: “List Scrolling And Document Translation, Scaling, And Rotation On A Touch-Screen Display”
• Patent No. 5,920,726: “System And Method For Managing Power Conditions Within A Digital Camera Device.”
• Patent No. 7,633,076: “Automated Response To And Sensing Of User Activity In Portable Devices”
• Patent No. 5,848,105: “GMSK Signal Processors For Improved Communications Capacity And Quality”
• Patent No. 7,383,453: “Conserving Power By Reducing Voltage Supplied To An Instruction-Processing Portion Of A Processor”
• Patent No. 5,455,599: “Object-Oriented Graphic System”
• Patent No. 6,424,354: “Object-Oriented Event Notification System With Listener Registration Of Both Interests And Methods”

Another complaint was filed with the ITC and may include other patents, since there are only ten here and Apple claims 20 patents are being infringed altogether.

Apple vs HTC

Mamiya announced their latest large sensor DSLR today, the DM40. Coming in at a memory card crushing 40 megapixel, the DM40 can capture images at up to 60 frames per minute, make it the fastest large sensor DSLR on the market. And one of the most expensive

More: 
Mamiya announces DM40 DSLR, makes wallets bleed

The New York Times Company has teamed up with RMG Networks to have some of its digital content displayed on part of the latter’s network of out-of-home screens. The partnership is said to bring NYTimes content to some 850 screens, located in district cafés and eateries in the New York, Los Angeles, Chicago, Boston, and San Francisco markets.

The new initiative, dubbed “NYTimes.com Today”, will feature the latest news headlines, photos, and a selection of videos exclusively from NYTimes.com – along with advertising units – on the digital location-based network operated by RMG Networks.

There’s also a mobile aspect to the story, as viewers can head to NYT2day.com on their phones to receive a direct link to the NYTimes.com Today mobile site, featuring the full articles displayed on the – smaller -screens.

Let’s take a closer look at the NYT’s newest distribution partner.

RMG Networks is headquartered in San Francisco but has local offices in New York, Chicago and Beijing. The company was founded in 2006 under the name Danoo and boasts an undisclosed amount of funding from National CineMedia, Kleiner Perkins Caufield and Byers and DAG Ventures – all investors also have one or more representatives on its board.

The company says it’s capable of delivering digital content and advertising to over 60,000 video screens nationwide, enabling it to reach up to nearly 25 million viewers every month.

RMG Networks’ management team is comprised of Garry McGuire (CEO), previously Chairman of Icon Internet Ventures, and former executives from companies such as Yahoo, LevelVision, Screenvision and McKinsey & Co.

Back in July 2009, when the company was still named Danoo, it acquired IdeaCast and rebranded the combined entity RMG Networks.

(Image via Venturebeat)

In something of a surprise move AOL has sold Buy.at, the affiliate marketing network it bought in early 2008, to UK network Digital Window. AOL acquired Buy.at for a rumoured $150 million but although sale terms have again not been disclosed this time round it’s fair to say the price will be substantially less that that.