The Good NET Guide

Posts Tagged ‘myspace’

Lots of scuttlebutt around Silicon Valley that new investment bank CODE Advisors is out pitching a MySpace spinoff to potential buyers and investors. Sources include people who’ve actually been pitched.

CODE Advisor partner Quincy Smith says “We have not been engaged by News Corp. or MySpace on a sale of the company.” MySpace also contacted us to deny the rumor – “The story is false.” – although we hadn’t actually gotten around to asking them yet. Word travels fast, it seems.

MySpace does confirm that they have an ongoing relationship with CODE Advisors to look for companies that they may want to buy, particularly in the music space (they’ve bought two music startups, iMeem and iLike, in the last year). CODE Advisors partner Fred Davis is leading that effort.

But any effort to spin off MySpace from News Corp. – something we’ve argued must be done for the company to have any chance to thrive – is being done unofficially. And perhaps without the knowledge of News Corp. execs.

Are MySpace execs testing the waters to see if there’s a way to spin themselves off of the politics-driven News Corp.? That’s being flatly denied. But it sure would makes a lot of sense. And, like we said, the pitches are happening, whether everyone denies it or not.

Today, during his keynote address at the SXSW festival in Austin, Texas, Spotify CEO Daniel Ek had a big revelation: “On certain days, we’re consuming more Internet capacity than Sweden has as a country.”

Ek made the statement when asked why Spotify chose to use a P2P model, rather than centrally store all of its music in one place and stream it from there. Ek noted that if they were to stream from one UK datacenter, they’d consume all the bandwidth. So instead, they leverage the power of the Internet to get their users to help them stream to other users.

Ek also said this was primarily the reason that Spotify is a native application, rather than a web app. P2P streaming is a bit more complicated than streaming from one source on the backend of things, obviously.

When asked why Apple (which of course, runs the largest music store in the world, iTunes) doesn’t use the P2P method, Ek said that was the “million dollar question.” He then speculated that they will move more towards Spotify in terms of being in the cloud, and having a subscription model.

Ek noted that Spotify is now in six countries and has over 320,000 paid subscribers. That’s up from 260,000 the last time they mentioned it. Overall, they have some 7 million users now. And yes, that’s largely without the U.S. where the service only exists in a very limited closed beta as the company negotiates with the labels for music rights.

We’ve had lots of emails from MySpace employees with their response to our most recent post about the crumbling mid level management structure. “If you’re a MySpace employee and feel differently, please contact us anonymously,” we said. And they did contact us. But they don’t feel differently. There was also a great discussion in the comments section to that post where a few MySpace employees chimed in both pro and against the company.

But the emails were most telling. One wasn’t anonymous and the writer asked to keep it off record, and we’ll respect that. But he wrote at length about high level execs “chewing out” the lower ranks, in public. And lots of exec level nepotism hires.

This is a theme brought up by another employee, writing anonymously. He or she confirmed that too many mid level managers are leaving the company, and talks about more yelling at employees in public (“Maple” refers to 407 North Maple Drive, the address of MySpace HQ, “Jason” refers to Co-president Jason “Hell Yeah” Hirschhorn):

Dear TechCrunch-

I always enjoy your article on the drama at my company – MySpace but I’ve never felt the urge to write until now. I guess I’m writing you because your article was ABSOLUTELY dead on. Because of that, my morale isn’t really high and I really don’t give much of a shit anymore.

Well, the hole goes deeper than that. Many departments are losing much of the middle layer of actual star performers, but people who can’t get anything done due to the crazy BS in Maple. For example, 2 directors in Jason’s product org are gone recently: (Director of Analytics – Joe Schantz who went to Yahoo), Director of Product Mahesh Angadi. Other senior middle managers like Sr Product Manager Charles Pham, who went to CitySearch and Sr. Online Marketing Manager, Laura Coltrin left and is now at EventBrite. What do these particular people have in common? Besides being huge losses for MySpace, they were all re-orged under his royal heighn-ass, Jason. People don’t want to work for that moron – he’s just consolidating power.

Today, Jeff Webber – Director of Engineering in Seattle – gave notice (no idea where he’s going.)

Oh, and Jason really doesn’t get along with Mike. Jason was witnessed ripping one of his VPs a new one when the VP was trying to explain why he was doing something that Mike requested (in front of 6 other people.) It’s a mess – but it should be fun watching one run the other out of town.

A bunch of other people have their foot out the door – spend some time around Maple, SF or Seattle near the front entrance and watch people disappear for hours at a time or for “long lunches”. Its almost comical. You see a lot of people going into empty conference room and talking on their cell phones or people “going to grab coffee” by themselves and chatting on the phone walking down the street. And yeah, I’m one of those people.

Anyway, this isn’t just due to the fact these idiots are running the company into the ground. The reason why people are leaving now is that MySpace gave out these big secret retention bonuses that had a 2 tier payout. Overall, the ENTIRE bonus was for anywhere from 20% to 100+% of a person’s base. The key is that they pay out in two segments – you had to be working in December so that you get 25% of the bonus amount). If you’re employed here until June, you get the remaining 75% of their bonus. As you can imagine, this is a LOT of money – especially at a place that gave tiny annual raises last year (<5% was the average), where we cancelled profit sharing last fiscal year (not sure you knew about that) and with no stock incentive.

It’s a huge sign of how bad things are that they are leaving 75% of the bonus on the table. However, since we all know that the ship is sinking, taking 25% in December was good enough. I don’t blame them. I’m out of here as soon as I get a new gig. I earned that bonus money but I’m sick of this place.

Oh – and the guy who thought of this bonus plan? Mike. These were given out after the review cycle (August.)

So yeah, you want to write about more defections? Wait until June and then everyone will get paid and bounce. I and others are counting the days. Its kinda funny – it was supposed to be a total secret from everyone in the ranks (yes, some people didn’t get bonuses, but those people kinda suck so who cares right?) but now everyone is joking about it privately.

-Disgruntled

And one last employee says it’s ok to paraphrase and quote parts of his/her email. This one still has some fight left in ‘em. Here are some of the better parts:

Until a recent reorg of the engineering group (did you cover it? I don’t recall seeing it.), the whole company was segmented into horizontal layers so there was an operations group, a database group, an api group, a front-end group, a search group, a datawarehouse group, etc. Anything but the most minor feature required an obnoxious amount of cross-group interaction and took huge effort just to get everyone on board and the work scheduled. Some of that layering is being done away with, at least that is the stated goal.

In addition to the extreme layering there was a group of people who sat in the middle of the process, able to accept or reject any project; people who didn’t have the business sense to be in bizdev or be product managers and didn’t have the technical ability to be developers. When they accepted a project for development they would (randomly?) select some developers to build it. There were no clear lines of responsibility, no reason for anyone to really care about what they were working on, no reward for success and no punishment for failure (except for layoffs which seem to happen more or less randomly so they don’t fall on either the reward or punishment side). This structure was called ‘the matrix’ and thankfully was a casualty of the reorg. Plus in the big layoffs last spring (before my time) the hardest hit groups were front-line employees, the developers and testers who do the actual work; you had these big design committees arguing back and forth for weeks or months about how and what to do and no one to do it at the end of the day.

A lot of the people who are leaving and have left recently were in charge of this dysfunctional process and are unable or unwilling or just plain sick of trying. Yes a lot of good (better anyway) technical people are leaving or have left and yes there is a lot of detailed knowledge about keeping the current code running going with them.

…

There are other problems besides all of that, God I’m getting sick of writing about this. The technology platform (.net) and development methodology (scrum) and general caliber of developer (although there are exceptions) is more reminiscent of a poorly run enterprise development shop than an Internet company, certainly far far far from what you would find at a startup or Facebook or even Microsoft.

…

Will Mike & Jason succeed at creating something functional out of this godawful mess? Too soon to tell, I think. The first all-hands meeting a couple of days after they took over felt like an old fashioned tent revival or something, I almost expected Zig Ziggler to show up. But I will say that there has been more communication from them in a few weeks than from Owen in several months and they are reaching out to meet with developers working on interesting or important new projects, in short they seem engaged in a way that Owen never did. I’m willing to give them the benefit of the doubt for now.

Long ago Google unofficially abandoned the Don’t Be Evil mantra and replaced it with, no kidding, an “evil scale.” Sometimes you have to chose between the lesser of two weevils, as Patrick O’Brian would say. And frankly, just staying this side of decent is enough for most companies.

So when Twitter CEO Evan Williams said earlier today that one of Twitter’s operating principles was to “be a force for good” I cringed a little.

One of the most important lessons I’ve learned in business, and am still learning, is to never trust anyone who says “you can trust me.” That’s a big red flag that they’re planning something really messed up in the near future. And likewise, a company shouldn’t be out there saying “don’t be evil” or “be a force for good.”

First because it’s basically impossible to balance a profit motive with a goodness motive. And in fact the nice thing about capitalism is that everyone acting in their own self interest tends to be good for everyone else, too, if appropriate government forces are put in place to stop monopolies, pollution, etc. Being a socialist is a great way to get laid in college but it’s no way to run a society.

And second because when people, or governments, or companies start talking about being a force for good, there’s a good chance that a serious amount of self righteousness is brewing behind the scenes. Everyone who fights a war thinks they have God on their side. And some of the most atrocious moments in history were done in the name of good.

What I’d like best is if Twitter just focuses on keeping the lights on, and adds competitive features that keep Google, Facebook and others on their toes. Let others use Twitter to do good things. Twitter should stay goodness-neutral and self righteous free.

Or alternatively try to be a force for good. But just do it, don’t talk about it.

Aol launched Lifestream, a social aggregator and publisher, as part of their AIM platform at TechCrunch50 Last Fall. Since then it has gained nearly 2 million users, say Aol. Based on that success Aol is now launching Lifestream as a standalone product at lifestream.aol.com.

Like Friendfeed, Lifestream aggregates a number of third party social networks – Facebook, Twitter, MySpace, Foursquare, Delicious, Digg, Flickr, YouTube, etc., so if you follow a Lifestream user you’ll see all of the content that user publishes on those networks, and Lifestream automatically pulls in content from people you already follow on those various social networks, so you don’t have to create yet another new friend list. Lifestream isn’t yet integrated with Google Buzz, but Aol says it may be coming soon.

Users can filter out content from specific networks if they like, on a per user or broad basis. A way to think about this – “noise cancellation for social networks.”

Lifestream also lets users publish back to social networks. Status updates posted to Lifestream can be posted back to Facebook, Myspace and/or Twitter. Lifestream also optionally notes your location in your status updates via GPS on mobile devices, or you can manually add it instead.

That’s not it though. Users can sign in to Lifestream using their Facebook account via Facebook Connect, making it unnecessary to remember separate account and credentials for the site.

You also have a variety of choices in how you use Lifestream. You can access it via the website, an AIR application, or via iPhone and Android applications. As I said above, the mobile applications are particularly useful because they auto-note your location for easy check-ins, and you can post pictures you take from the phone.

That mobile version of the product is what excites me most. You can see where your friends are checking into on, say, Foursquare, click through to a place page and then go there yourself and check in. And Lifestream allows you to follow places just like people, so you can see whenever someone checks in to your local cafe or bar. That ability to follow places is probably the single best reason to use Lifestream.

The Lifestream product is simple, intuitive and really, really useful. Frankly it’s what Google Buzz should have been – both an independent social network on its own, but very deep integration into all of the other social networks you are likely to use daily. It’s nice to see actual innovation coming out of Aol.

Jon [Miller] came to us and said, `Would you like to be co-presidents?’ We said, `Hell yeah.’ We didn’t have to move our desks,”

– Former MySpace Chief Product Officer Jason Hirschhorn’s reaction to the abrupt firing of his boss and his promotion to co-president of MySpace.

A new study by Comscore will be released on Wednesday that may give hope to social gaming startups trying to monetize users. 35% of the survey respondents said that they engage in “marketing actions” to earn virtual currency (such as watching a video, filling out a survey, etc.), and 53% said they be willing to consider marketing action for currency if given the choice.

The study was conducted by Comscore, sponsored by Offerpal, and included responses from 799 Comscore panelists who play games on social networks at least once per month. 54% of panelists play games at least daily.

This is good news for game developers who’ve had their monetization choices somewhat fenced in over the last few months. Gamers 25-34 are the most likely to earn virtual currency for marketing actions, according to the study – 71% of panelists in that age group said they are “very likely” to consider this.

The study also showed that about 30% of panelists don’t have the ability to pay cash for virtual currency. But more than half of all panelists, including a majority of those that can pay cash and a majority of those that cannot pay cash, were willing to consider marketing actions.

The bottom line of the study is that even users who have the ability to pull out their wallet want options when it comes to social games. And as long as they don’t get scammed along the way, we’re just fine with it. Watch a video in exchange for Zynga points? That’s a better deal than the credit card.

On Tuesday we posted an internal MySpace product document presenting detailed recommendations on rebuilding the MySpace developer/apps platform. Included in that post was an embed of the document hosted on Scribd. MySpace has chosen to send a DMCA notice to Scribd to have that document removed, and Scribd complied. MySpace didn’t copy us on the notice, or send any other notice to us about the content.

So we’re putting it on our own servers. You can download it in all its glory here.

If you want to fight this, MySpace, you have to come through our lawyers. Now I’m all riled up.

Google News is testing out a new design, as I reported earlier this month. It includes trending topics on the left and new personalization options. But today someone in the bucket test noticed something different. The sharing options changed. Each story can be shared via email, Google Reader, or Facebook.

Most people won’t see this. It is just in a limited test. But it does suggest that Google is starting to seriously think about ways to drive more sharing of content across the Web. But why push content to Facebook and not to Twitter? And for that matter where is the Google Buzz button?

Of course, sharing to Google Reader is the same as sharing to Buzz (that’s how sharing works on Buzz), but Google should push the Buzz brand here if this feature ever becomes widespread. Google Reader itself has long had many sharing options, including the ability to send posts to Facebook, Twitter, Digg, Delicious, Blogger, and StumbleUpon. It’s about time Google News got better sharing options as well. Currently, the only sharing option is via email.

The fact that Google is testing with Facebook is also interesting, and shows a growing embrace of its social rival. Some Facebook updates are now appearing in Google’s realtime search results. In which Google product will Facebook turn up next?

(Hat tip to @JoeHobot).

Our constant rants on the PR Industry do not go unnoticed. In return our tips box is filled with humorous anecdotes, articles and now, a video. Here are two we’ve received in the last week. Which we’re posting in honor of Yahoo breaking its own embargo, and the AP sending the launch of CODE advisors completely sideways by breaking an embargo by nearly 24 hours. Outcast PR was on both stories.

First, the job description. Even a decade ago everyone thought PR was just about the worst job around. Forbes did a roundup called “Five Crappiest Tech Jobs,” and “PR account executive for a dot com startup” was on the list. Other winners included “porn sifter for filtering company” and “packer for dogdoo.com” (a site that actually sold dog excrement online):

PR ACCOUNT EXECUTIVE FOR A DOT-COM STARTUP—Here’s the perfect job for people who want the worst of all worlds. For starters, everyone hates flacks. Journalists hate them because they think they’re incompetent whores. Businesspeople hate them because they think they’re incompetent whores. And flacks hate themselves because deep down inside they suspect that they might be incompetent whores. But what’s particularly bad about doing publicity for Internet startups is that everyone in the media has already heard every story with every angle about every product and every service a thousand times and never wants to hear from another PR firm as long as they live. But flacks can’t explain this problem to their nitwit 23-year-old CEO clients because the CEOs have all persuaded themselves that their generic success story is the stuff of legend. Flacks get personally abused by clients, insulted by journalists, stiffed out of their fees by customers, ridiculed by colleagues, and humiliated by their superiors. One flack for a major software company says her boss got so upset that he ordered her to attend charm school. Another had to go shopping for underwear for a skivvy-less journalist. How uncouth. All in all, being a dot-com flack is exactly like being a whore, except the hours are worse.

Second, this video (in fact created by TechCrunch Europe Contributing Editor Steve O’Hear) which recreates a conversation between a PR professional and a blogger or journalists. We have this same conversation oh, five or more times per day:

Transcript:

PR Pro: Hi I’m just checking you got the email I sent.

Blogger: When did you send it?

PR Pro: Five minutes ago.

Blogger: Oh. I get a lot of email.

PR Pro: Shall I send it again?

Blogger: No. What did it say?

PR Pro: I’d love to tell you, but you’ll have to agree to the embargo first.

Blogger: Ok whatever, I agree, now tell me more.

PR Pro: Can you email back first saying you agree to the embargo?

Blogger: I get a lot of email.

PR Pro: Please.

Blogger: Look, I honor the fucking embargo. Now tell me more.

PR Pro: A Silicon Valley based startup is going to announce a new revolutionary software as a service for social media companies targeting B2B. It will change the way social media marketing is done forever. Are you interested in a briefing with the company’s CEO.

Blogger: No, I don’t cover B2B.

PR Pro: But I thought you wrote about social media.

Blogger: I do, but not B2B.

PR Pro: But it is revolutionary.

Blogger: So are all the others.

PR Pro: Really?

Blogger: Yes. Look, when every new social media service is revolutionary it is no longer news.

PR Pro: I didn’t know that, but we are working on an API.

Blogger: I’m not interested.

PR Pro: Oh.

Blogger: Sorry.

PR Pro: Can I still email you the details?

Blogger: If you must.

PR Pro: And you’ll honor the embargo?

Blogger: Yes, I’ll honor the embargo. In fact I’ll make you a better offer.

PR Pro: Oh.

Blogger: I will honor the embargo for the rest of my working life. As I have no intention of writing about your new revolutionary software as a service for social media companies that will change the way social media marketing is done forever. So, yes, I’ll honor the fucking embargo.

PR Pro: I can’t thank you enough.

Blogger: It’s nothing. Really.

Our past rants:

The PR Roadblock On The Road To Blissful Blogging
One PR Firm’s Lack Of Ethics: Reverb Caught Astroturfing The App Store
The Reality Of PR: Smile, Dial, Name Drop, Pray.
Meet Lois Whitman, The Poster Child For Everything Wrong With PR
Death To The Embargo
The Last Has Fallen. The Embargo Is Dead.