Digital

Business as usual has ended in the media business

Tuesday, 6 August, 2013 0 Comments

In an interview with the German paper the Berliner-Zeitung last year, Jeff Bezos described newspapers as a luxury item headed for extinction:

“There is one thing I’m certain about: there won’t be printed newspapers in twenty years. Maybe as luxury items in some hotels that want to offer them as an extravagant service. Printed papers won’t be normal in twenty years.”

In his letter to the Washington Post employees, who are now his employees, Bezos has this to say: “There will, of course, be change at The Post over the coming years. That’s essential and would have happened with or without new ownership. The Internet is transforming almost every element of the news business: shortening news cycles, eroding long-reliable revenue sources, and enabling new kinds of competition, some of which bear little or no news-gathering costs. There is no map, and charting a path ahead will not be easy.”

With his purchase of the Washington Post, Jeff Bezos has become one of the most influential content creators in the world. Consider this: Amazon’s e-book publishing unit recently scored its first million-copy hit when sales of the Hangman’s Daughter series broke through the seven-figure mark. Last week, Amazon Studios announced five new video-on-demand programme pilots, and its new video games wing is advertising for more than a dozen posts. Content is king, clearly.


appify

Wednesday, 10 July, 2013 0 Comments

“To create or modify an existing service as to make an application of it which in turn can be used in a larger application.” Urban Dictionary

The iOS App Store opened its virtual portals five years ago today. At GIGAOM, Erica Ogg notes that more than 50 billion apps have been downloaded since then, and that individual software makers, small startups and large corporations “have been able to build thriving businesses off of the platform. Apple says it has paid out $10 billion in revenues to its third-party app makers.” She ponders the pricing model and wonders about the search function and asks relevant questions about the future of the model, but today is a day for celebrating the brilliance of the idea and the genius of Steve Jobs. On 10 July 2008, he told USA Today that the App Store contained 500 third-party applications for the iPhone. Now, it’s approaching one million.

Note: In January 2011, app was awarded the honour of being named 2010’s “Word of the Year” by the American Dialect Society.

Apps


The debatable promise of The New Digital Age

Monday, 10 June, 2013 0 Comments

Spent part of the weekend reading part of The New Digital Age by Eric Schmidt and Jared Cohen. The book exudes positivity and Richard Waters noted in the Financial Times that “it lays out a mainly optimistic case for why the world’s tyrants should tremble in the face of universal internet access.”

The New Digital Age In their Introduction, the two authors sing the praises of “digital empowerment”, the result of which is that “authoritarian governments will find their newly connection populations more difficult to control, repress and influence, while democratic states will be forced to include many more voices (individuals, organizations and companies) in their affairs.” Then, comes this sentence: “To be sure, governments will always find ways to use new levels of connectivity to their advantage, but because of the way current network technology is structured, it truly favors the citizen, in ways we will explore later.”

Is “the citizen” here Jared Cohen or Edward Snowdon? The revelations about the PRISM project would appear to suggest the transition to a total surveillance society is underway and while Schmidt and Cohen don’t dismiss such dangers, they come across as somewhat naïve when they write: “In fact, technology will empower people to police the police in a plethora of creative ways never before possible, including through real-time monitoring systems allowing citizens to publicly rate every police officer in their home-town. Commerce, education, health care and the justice system will all become more efficient, transparent and inclusive as major institutions opt in to the digital age.”

More “efficient”, no doubt. But more “transparent”? One has doubts. That, by the way, is from the first chapter, “The Future of Identity, Citizenship and Reporting”, which asserts: “Governments, too, will find it more difficult to maneuver as their citizens become more connected.” Really? The NSA data-mining PRISM project is, in fact, a partnership with at least nine big US internet companies, among them Google, Skype, Facebook, Microsoft, Yahoo and Apple. Governments, it turns out, regardless of what Schmidt and Cohen say publicly, are very agile in The New Digital Age.

In a future where everyone is connected, Juvenal will be more relevant than ever: “Sed quis custodiet ipsos custodes?” (“But who will watch the watchers?”) he asked.


Erdogan channels Assange and Morozov

Tuesday, 4 June, 2013 0 Comments

“Now we have a menace that is called Twitter. The best example of lies can be found there. To me, social media is the worst menace to society.” As protests engulf Turkey, Prime Minister Recep Tayyip Erdoğan is blaming social media for the unrest. His targeting of Twitter, which has become a hub for activists and a major news source as Turkey’s mainstream media have downplayed the crisis, will be watched with interest by Evgeny Morozov, who has made a profession out of his cynicism for the popular notion that the internet can be an agent of regime change. In the internet-inimical Frankfurter Allgemeine Zeitung, which hosts a regular Morozov column, the Belarus-born author argues that the net is, in fact, a tool for mass surveillance and political repression.

Echoing Morozov’s fears, the alleged-rapist, Julian Assange, took to the New York Times at the weekend and declared, “The advance of information technology epitomized by Google heralds the death of privacy for most people and shifts the world toward authoritarianism.” The notorious fugitive from justice was reviewing Eric Schmidt and Jared Cohen’s book, The New Digital Age. He continued: “But while Mr. Schmidt and Mr. Cohen tell us that the death of privacy will aid governments in ‘repressive autocracies’ in ‘targeting their citizens,’ they also say governments in ‘open’ democracies will see it as ‘a gift’ enabling them to ‘better respond to citizen and customer concerns.’ In reality, the erosion of individual privacy in the West and the attendant centralization of power make abuses inevitable, moving the ‘good’ societies closer to the ‘bad’ ones.”

When the dictatorial Erdoğan, the seedy Assange and the skeptical Morozov are on the same page, it’s time to count our digital spoons.

Twitter Istanbul


The emergence of connected cars and drones

Thursday, 30 May, 2013 0 Comments

Yesterday: Desktop PCs. Today: Samsung’s growth. Tomorrow: Wearable tech. Just three take-aways, as they say, from Mary Meeker’s must-read annual Internet Trends presentation at the D11 conference.


WordPress @ 10 today

Monday, 27 May, 2013 0 Comments

Word Press update The very first version of the WordPress blogging software saw the light of day a decade ago today. Among the advances it offered back on 27 May 2003 were “Highly Intelligent Line Breaks”. The “brand new function” added “line breaks except where there is already a block level tag or another line break,” promised 19-year-old programmer Matt Mullenweg. Today, WordPress is the world’s most popular Content Management System. And, according to the “State of the Word,” it’s getting bigger every day.

Although it powers the likes of TechCrunch, Engadget and Business Insider, WordPress was not designed to make Matt Mullenweg rich — it’s free. Because of that, WordPress has enabled many bloggers and enterprises to publish dynamic content economically, effectively and efficiently and, this is important, to monetize it. To earn some money from his coding, Mullenweg founded Automattic in 2005 and the company was in the news last week when it announced a $50 million investment from hedge fund and private-equity investor Tiger Global.

The recent sale of Tumblr to Yahoo for $1.1 billion shows that blogging has become big business. The money is out there and it’s chasing the platforms with the right numbers. Next up? Keep an eye on Medium, the brainchild of Twitter founders Ev Williams and Biz Stone. Other contenders include Soup.io from Vienna, Overblog from Paris and Salon.io from Berlin.

Rainy Day is proud to publish with WordPress.


Biggr. Flickr.

Tuesday, 21 May, 2013 0 Comments

This is turning into a significant week for Yahoo. And it’s only Tuesday. First up was Marissa’s acquisition of Tumblr in a $1.1 billion cash deal, and now comes a new-look Flickr with a free terabyte of free space. How big is a terabyte? Well, you could take a photo every hour for 40 years and you still wouldn’t fill a terabyte with your snaps.

flickr

In keeping with our Instagram times, the Flickr emphasis is now on images — full-resolution. Words are few and far between and the homepage is clean and visual. The other big meme of the day is social and the new-look Flickr allows users to push photos out to Facebook, Twitter, Tumblr or Pinterest.


Exit Tumblr followed by $1.1 billion

Monday, 20 May, 2013 0 Comments

“The exit, one of the biggest New York has seen shows that with content becoming important, New York is finding its footing on the startup stage.” That’s Om Malik writing about “What Tumblr’s sale means for New York startup ecosystem.” Later, he adds: “It would be one of the biggest exits for a New York-based startup. Sure there have been other exits — Google paid $3.1 billion for DoubleClick, but that was a company that belonged to a different Internet era.” Those not used to seeing “exit” used in this context need to brush up on their venture capitalist (VC) vocabulary because the “exit strategy” is how a VC intends to get out of an investment, profitably. The exit is a way of “cashing out” an investment via an initial public offering (IPO) or being bought out by a bigger player, such as Yahoo. It’s also referred to as a “harvest strategy” or a “liquidity event”.

One of the early investors in Tumblr was Union Square Ventures of which Fred Wilson is a managing partner. Along with being a famous VC, Fred is a famous Bob Dylan fan and those in the know knew that a deal was almost done when he posted “Don’t Fall Apart On Me Tonight” by Dylan on his Tumblr blog yesterday. And it didn’t.

So why is Fred Wilson cashing out and David Karp cashing in so handsomely? “The world is atwitter about Tumblr’s big exit to Yahoo!” says John Battelle, who claims it’s all about advertising, especially “native” advertising and the “activity stream”.


YouTube paid channels are part of a possible future

Friday, 10 May, 2013 0 Comments

YouTube has launched a paid channels experiment that can be accessed by paying a variable subscription fee, which starts at $0.99 a month. National Geographic is there, and so is TNA Wrestling Plus. Among the other offerings: Fix My Hog and Gay Direct. And there’s more to come. Notorious B-movie producer and director Roger Corman has announced that he will launch a paid YouTube channel this summer. “Corman’s Drive-In” will showcase his library of around 400, er, classics.

For all those who equate YouTube with free, this will come as a shock, but Jaron Lanier, the computer scientist who popularized the term “virtual reality”, will be pleased. Who Owns the Future? is the title of his new book and in it he pleads for a radical rethink of how all those busily engaged in creating the digital commons should be compensated. The Lanier solution? If information is worth money (and the share price of Google would suggest it is), then people must be paid for what they contribute to the web. He proposes an intricate system in which Facebook, for example, is no longer free, but also stops getting user data for free. Information creators of would be rewarded with nanopayments generated by users of information in Lanier’s scheme.

The internet, claims Lanier, is currently biased in favour of “siren servers” (big companies) that convince users to exchange data for “free” services — search, e-mail, social networks. But instead of heralding a new age of prosperity, he writes, the net is making us poorer. Careers in professions such as music and writing are disappearing, thanks to the ease of copying, and more traditional middle-class jobs will certainly follow. “To grasp the Huffington Post’s business model, picture a galley rowed by slaves and commanded by pirates,” wrote Tim Rutten. While some grow fat, creatives are not paid and many are driven to destitution by those who pretend that they have our interests at heart. Jaron Lanier’s heart is in the right place, but his nanopayment proposal is unworkable. Paid channels offer a better solution.


Google bails out France

Wednesday, 6 February, 2013 0 Comments

There they were, François Hollande, the president of France, and Eric Schmidt, the executive chairman of Google, doing what the leaders of middle-ranking powers do so well: holding a joint press conference, shaking hands while posing for the camera signing important-looking documents. And what was it all about? In short, a €60 million bailout. Cheap […]

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GigaOM gets responsive

Thursday, 10 January, 2013 0 Comments

January AdAge headline: “AOL to Redesign All Content Sites with Responsive Design.” December Mashable headline: “Why 2013 Is the Year of Responsive Web Design.” What’s going on? Well, responsive design is a new approach that enables web developers to build and maintain a single website to serve to all kinds of devices: smartphones, tablets, laptops […]

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