The Good NET Guide

Posts Tagged ‘internet’

Didn’t I just write that the online video publishing market is heating up quickly? Here’s another testament to that notion: KIT digital this morning announced that it has agreed to acquire privately-held competitor Multicast Media for net consideration of approximately $18 million.

The acquisition sum is comprised of $4.9 million in cash and 1.3 million shares of KIT digital common stock, plus the assumption of approximately $4.6 million in long-term liabilities.

KIT digital plans to close the acquisition by the end of this month.

This is KIT digital’s sixth strategic acquisition, following the purchases of Narrowstep, Visual Connection, Morpheum, Kamera, The Feedroom and Nunet (the latter two brands were retired by KIT digital late 2009).

Multicast specializes in live event broadcasting, Internet video management and targeted multimedia communications for about 1,000 organizations ranging from government, non-profit organizations to Fortune 500 companies. In 2009, Multicast claims to have delivered broadcasts for some 50,000 live events and served more than 250 million video streams to a worldwide audience.

The company is said to derive an estimated $12 million in annualized recurring licensing fees for its IP video management software, with additional revenues related to professional services.

From what we can gather, Multicast has never publicly talked about how much funding it raised and when, although it is listed as a portfolio company of Northbrook, Illinois based MK Capital.

KIT digital will be integrating Media Suite’s live and content delivery solutions onto its VX-one platform, and expects to host Multicast’s clients operating on a unified platform by the third quarter of 2010. Several Multicast executives will be transitioning to KIT digital’s global management team and the company’s offices in Atlanta, Georgia will continue to be staffed by 90+ Multicast employees.

Concurrent with the Multicast acquisition, KIT digital announced that it has acquired or agreed to acquire nearly 4 million of its outstanding in-the-money warrants over the course of the first quarter, using the proceeds from its recent $15 million public equity offering.

The war between the enterprise-grade online video platform providers rages on, and Brightcove will announce later today at the SXSW conference that it was won another small battle by signing up EMI Music, one of the “big four” record companies.

The EMI Group company will use Brightcove as its online video publishing and syndication platform of choice in North America, across all of its website properties and to some of its third-party syndication partners.

Brightcove sure knows how to convince big music to sign deals with them: in addition to EMI Music, the company works with a host of other major record labels including Warner Music Group, Universal Music Group, Sony and Atlantic.

The Brightcove platform will enable EMI Music to create customized viewing experiences, including country and language-specific video experiences for its Web properties, and expand the reach of its video content through SEO, social sharing tools and a range of third-party distribution capabilities. EMI Music will also be able to tap into Brightcove’s monetization and analytics tools in order to open up new revenue streams through online video advertising.

Brightcove recently scored a few big wins in Europe as well, signing up the U.K.’s Virgin Media and a number of customers in Spain ranging from publishers Conde Nast Digital Spain and Grupo V to video and music providers TQMadrid and Sony Music Spain. It doesn’t win all battles, though: rival Ooyala recently took over as lead provider of an online video distribution platform for the Telegraph Media Group.

Also check out Michael Arrington’s video interview with Brightcove CEO Jeremy Allaire in Davos from earlier this year.

(Via press release)

I mentioned in my last post that mobile is bridging the digital—not to mention analog— divide in India, with almost half as many new mobile accounts being opened just last January as there are Internet users in the entire country.  And there are a host of interesting companies seeking to leverage that network as some kind of rudimentary, literally “dial-up,” Internet that extends far beyond the country’s 50 million or so Web users.

One of the most ambitious companies I met with during my last trip to India in November was Eko, a mobile banking company. There are a few SMS-based bank applications in India, but Eko differs because the phone isn’t just another channel for the account—it is the account. You make payments and transfer money simply by dialing numbers. It’s so simple, you don’t even need to understand SMS to use it.

It’s an ingenious offering that doesn’t try to be everything to everyone. It aims squarely at the unbanked—some 60% of India’s huge population. For now, Eko is focusing on the 1,000 kilometer corridor between Delhi and Bihar.

It’s a textbook case of the how hard it is to build something incredibly simple within a sandbox of tight constraints—yet that simplicity is the same thing many would argue caused Twitter’s 140-character missives to become so universal. There are no extra bells and whistles with Eko’s service because there’s no room for them, and at the end of the day, probably little need for them.

The accounts are actually held by the State Bank of India, which insures up to 100,000 rupees per account, but Eko’s customers don’t ever go into banks. The “tellers” are the tiny corner groceries that dot every neighborhood and street corner in India’s crammed urban areas and expansive rural areas. They are the center of commerce for those living on intermittent jobs, tips and handouts. These stores sell medications by the pill, shampoo in tiny sachets, cell phone minutes by the Paisa, and frequently extend credit when needed. Eko just seeks to give this already trusted, daily-visited vendor one more thing to sell.

The interface is simple enough for anyone to use, regardless of language or literacy. Just like filling out a check requires you to enter the payee, how much you are paying and sign it and Eko transaction has the same three elements. Eko customers type the bank’s short code, then an asterisk, then the mobile number of the person you are paying, then an asterisk, then the amount, then another asterisk. Then comes the signature. That’s the tricky part, but also the most important, because the account is solely on phones, which can be stolen.

Eko’s founder Abhishek Sinha (pictured above amid his signage) wanted to come up with a cost-affective equivalent of an RSA token, so he created a paper version of it. Account holders get little booklets with pages of 11-digit codes. Seven digits of it are random numbers, with four randomly placed black marks, where the person enters his or her PIN. So even if the booklet is stolen, no one knows the PIN number and they still can’t access the account. There’s a VeriSign logo on the back of each booklet. Sinha reached out to VeriSign to see if they could come up with a better solution– instead they endorsed his.

Freedom from always having to carry cash has obvious safety and empowerment implications. But this is a hard company to build out broadly in a country like India. The very strength of the model to truly reach the unbanked—turning those trusted, neighborhood grocers into tellers—inherently makes it costly and time-consuming to build because there are so many of them serving relatively small neighborhoods and villages. Eko has 30,000 account-holders right now. “I thought it’d be a million by now,” Sinha says. “We’ve had a lot of false starts.”

There’s a cost-time trade off. Since the service launched in late 2007, Eko was outsourcing the management of the grocers to a third party who sells multiple things through the channel already. But evangelizing the product takes more hand-holding, so the number of accounts wasn’t growing. Since November, Eko has taken over the management of these grocer accounts assigning employees to each neighborhood and investing in street promotions, blaring its Bollywood-eque jingle extolling the virtues of banking and bedecking stores with in-store signage. Now new accounts are soaring. Eko had just 6,000 accounts before the switch in strategy. It added 10,000 in January and is now adding 10,000 every 15 days.

But costs are going up too. Sinha, who made some money founding a previous company Six DEE Telecom Solutions, has self-funded the venture until now, and in Eko got a $1.78 million grant from the World Bank and The Gates Foundation. But that money will run out this year. He’s working on raising a venture round now—and hoping to get a whopping $10 million. In his previous startup he says he was turned down by literally hundreds of VCs and says that this time it’s going a lot better. Indeed, he jokes, it’d be hard for it to go worse. For one thing, he’s learned a 60 page PowerPoint is overkill.

Like VNL, the solar-powered, mobile equipment company that was 100% bootstrapped by the founder, this is one of those companies that is tricky to build in India. There’s a huge social need and business opportunity if it hits scale, but there’s also a lack of capital to support deals like this. A venture firm is more comfortable in the $3 million-to-$5 million range and a private equity firm would demand a lot more maturity of the business before it would invest. Had Sinha not invested his savings in the project, it likely wouldn’t have gotten this far.

I asked several times if Sinha was worried. What if he couldn’t raise the money? He laughed every time I asked with a look in his eyes of “Do you know how hard it actually is to be an Indian tech entrepreneur?” He says he’s been through enough to know there’s always a way. (Regular readers know there’s a word for that.)

Up until a moment ago, this was going to be a standard “newsy” post: the FCC will announce its National Broadband Plan on Tuesday, here’s what it’s all about. Then I read the comments of a PC World article discussing that very same plan—many people are outraged that the government would muscle its way into the free market! If Americans wanted fast broadband then the market would provide it on its own terms. That, of course, is complete nonsense: plenty of Americans live in one-ISP towns, and if said ISP provides terrible service, well, though cookies, chico

Read more here: 
Why are people against the FCC’s National Broadband Plan?

Short Version: Fresh from the box, Creative’s World of Warcraft, is here! They were designed for WoW players and their performance definitely reflects that.

Read more from the original source: 
Review: Creative World of Warcraft headset

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 .

Brightkite is tricky. Tricky and smart.

While larger than most of their location-based rivals with over 2 million users, they know that in the past year they’ve lost some momentum to the newer check-in services like Foursquare and Gowalla. So they’re trying to do something unique to swing momentum back in their favor.

Today, at the SXSW festival in Austin, Texas, Brightkite is unveiling its new Group Text service. It’s both a feature on the website and a standalone application in the App Store (it should be available shortly). With it, Brightkite is latching onto one of the most popular and fast growing categories in mobile applications: group texting. Unlike regular text messaging, this type of app allows you to message many people all at once (and go back and forth). And better, in a world where cell providers are still managing to rip-off users with their text message bundles or $0.15 rate per-text, group texting is absolutely free.

Services such as textPlus have already made the functionality very popular on the iPhone, and now Brightkite hopes that will translate into converting different types of users over to its core location-based service. The reason is that built-in to the Brightkite Group Text app is the core Brightkite functionality itself. While it’s a bit buried to the left hand side of the menu, you can both check-in at venues, and get check-in updates from other users in the app.

It’s a smart play. As other location services such as MyTown have proven, there’s a market to get users outside of the traditional early-adopter crowd into location by doing something novel (in their case, a straight-up Monopoly-type game). Group texting users seem to be rabid about the software, so why not give them a little location-based bonus to play around with if they desire?

At the same time, this app provides a nice compliment to the Brightkite service itself. With it, users get another social outlet to communicate with, sending messages or pictures, and having them threaded both in the app and online. And yes, it still works with traditional SMS messaging, as Brightkite was lucky enough to be granted a texting shortcode (41414) and it can work with these threaded conversations. For example:

By adding three digits to the end of the code, each person can now have 100 simultaneous threaded text conversations running on their phone.
41414-001 = conversation 1
41414-002 = conversation 2

And thanks to the SMS support, you can contact anyone in your address book, not just those using the app.

The service is now live on Brightkite’s site, and look for it later today in the App Store.

This is the lede, verbatim, from a story that appeared in The Hill yesterday: “The Internet allowed extremists to contact, recruit, train and equip the suspect responsible for the attempted Flight 253 bombing on Christmas Day ‘within weeks,’ a top Pentagon official told lawmakers Wednesday.” What’s the implication, that because someone used the Internet to plan something, something bad, we should get rid of it? Fine by me, believe me.

This is the lede, verbatim, from a story that appeared in The Hill yesterday : “The Internet allowed extremists to contact, recruit, train and equip the suspect responsible for the attempted Flight 253 bombing on Christmas Day ‘within weeks,’ a top Pentagon official told lawmakers Wednesday.” What’s the implication, that because someone used the Internet to plan something, something bad , we should get rid of it? Fine by me, believe me.

See the original post here:
Pentagon partially blames the Internet for that Christmas underpants bomber

Editor’s Note: This guest post was written and reported by Steven Rosenbaum, the CEO of Magnify.net.

Today, the world of music, film, and the internet converges on Austin, Texas for what is fast becoming one of the key the places to launch new software products. For the folks at AOL, South By Southwest—know also as SXSW—will be a debutant party for AOL’s new Seed form of journalism.

AOL has it’s hopes pinned on that fact that SXSW will be the perfect place to both introduce the new Seed content machine to a large audience and test the concept of mixing freelance and pro-journalists to create a huge amount of original content. Seed has been operational for a few months now, but SXSW will be it coming out party, according to former New York Times writer Saul Hansell who is now the Program Director of Seed.

How’s this all going to work? Well, fielding an army of freelancers to cover SXSW’s 2000 bands is certainly a baptism by fire. AOL solicited freelance writers on its music site Spinner. Those interested in contributing were redirected to Seed, where they signed up. Hansell asked for work experience, music tastes, and clips. He says: “I can tell you now that we didn’t read the clips. We looked at these things to see if people can follow directions and if they didn’t write us 1,000 words when we asked for 100. And that was the criteria.”

Next, each of the more than two thousand bands that will play at SXSW were assigned to a Seedster to interview. Hansell says he had his fingers crossed. “I think we’re over the hump of my darkest fears,” he says, “and I had many of them. The first dark fear was we’d get total losers. The second fear was how good the interviews would be. “

Now, with first results surfacing on Spinner, Hansell says, “The people who sent us e-mails back were entertainment writers for weekend publications, kids in J-school who are also in bands, exactly the right type of people.” But they aren’t treated exactly like journalists. Hansell points out that Seedsters don’t get a press pass—if they want to hear the bands live they’ll have to buy their own ticket. But he expects some number of folks to try and hustle their way into shows by waving around their AOL clips. “That’s just expected.”

With clips like these, Seed writers are held to the same standards as any other freelancer on the AOL site. spinner’s editor Melissa Owen and her team edit the submissions and have final say on what runs and what doesn’t.

Why launch at South By Southwest? For Hansell, that was a no-brainer. “I know it is communicating our ambition. We are about reporting. We are about doing big and interesting things.” The big SXSW bet is that Hansell and his Seedsters can make more content, faster, better, and cheaper than anyone else. In addition the distributed community of potential contributors on Seed, AOL already employs 3,500 professional journalists on staff or as regular freelancers. And AOL has some interesting content search technology from its earlier acquisitions of Relegence and Truveo.

Man vs. Machine: The Bionic Solution

AOL has built a three legged stool to create content: part professional, part freelance, and part aggregated . . . but its model is far more hand-crafted than the other new players in the mass content creation space. “The essence of journalism has always been separating signal from noise,” says Hansell. “It’s all judgment. It’s all selecting the best bits.” What AOL hopes to create with Seed is an editorial machine which automates the assignment process as much as possible, but keeps the final selection part in human hands.

“I call it Bionic Journalism,” says Hansell. “Left brain, right brain. We are trying to take the best of a machine, which does lots of things over and over again, and a person.” It’s a tall order, and will take a lot more than a couple thousand band interviews to prove it works.

Is AOL trying to beat Google at the news gathering game? Hansell says it’s far more than that. “Google News will give you a whole clump of things that are probably about the same thing with a reasonable degree of accuracy. But it can’t tell you what it’s really about. It can’t summarize it. It can’t translate it into people language.”

The Ugly Economics: Not My Problem

So, what about cost? Some freelancers are complaining that the web doesn’t pay a living wage. “That is not my problem” Says Hansell. He quickly rephrases, “It is my problem but I didn’t do that, the world did that.”

He is however trying to sort it out. Asks Hansell: “How do you deal with the fact that the economics of the Internet can’t let you pay what people think that a freelancer can get paid? One way is you give them a bundle. If you give them ten of the same assignments, even if the price is low, by the time they’re done with the tenth one, they can do the tenth one in half the time they could do the first one.”

Here’s another one of Hansell’s analogies: “Seed is to freelancing as Ebay is to classified ads.” AOL’s Seed may be the future of freelance, but the math remains daunting; “The fact that we gave somebody ten interviews to do after she did one or two before, she’s delighted. That’s 500 bucks. That’s 500 bucks more than she was going to make doing something else, and it’s fun.” Well, “delighted” might be pushing it. Pumping out ten assignments for the price of what many professional freelancers charge for one will favor quantity over quality.

But if it all works—if Bionic Journalism can attract a massive audience and save AOL—what’s the home run? Here Hansell gets a little bit ahead of himself, but at least he is thinking big:

“It’s the most high risk improbable outcome, but the most exciting, which is that we become the most dominant force in journalism, broadly defined, in the Twenty-First Century. That’s what we’re shooting for. That’s what Tim is shooting for. That’s what I’m shooting for.”

And it all starts this weekend with 2,000 indie rock band interviews.

Steven Rosenbaum is the CEO of Magnify.net, a video curation platform that powers more than 68,000 web sites. Rosenbaum is a serial entrepreneur and Emmy Award winning documentary filmmaker. Watch his video notes of Saul Hansell talking about Bionic Journalism and AOL’s larger journalistic ambitions by clicking in the two previous links. .Follow Steve on Twitter.