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	<title>MediaMemo &#187; users</title>
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		<title>Hot Potato Is Ready to Eat: Do Twitter, Facebook Users Want Another Real-Time Chatter Service?</title>
		<link>http://mediamemo.allthingsd.com/20091125/hot-potato-is-ready-to-eat-do-twitter-facebook-users-want-another-realtime-chatter-service/</link>
		<comments>http://mediamemo.allthingsd.com/20091125/hot-potato-is-ready-to-eat-do-twitter-facebook-users-want-another-realtime-chatter-service/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 15:25:03 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=13280</guid>
		<description><![CDATA[Last month I told you about Hot Potato, one of the buzziest start-ups in the very buzzy "real time" sector. Now you can check out the service yourself. Or at least you can get a glimpse of it in this video.]]></description>
			<content:encoded><![CDATA[<p>Last month <a href="http://mediamemo.allthingsd.com/20091023/investors-bet-on-another-real-time-startup-next-up-for-hotpotato-product-users/?mod=ATD_search">I told you about Hot Potato</a>, one of the buzziest start-ups in the very buzzy &#8220;real time&#8221; sector. Now you can <a href="http://hotpotato.com/">check out the service yourself</a>. But not really.</p>
<p>The New York-based service opened its doors last week, but it won&#8217;t really kick into gear until Apple (AAPL) signs off on its iPhone app, and that&#8217;s taking a bit longer than the company expected. Founder Justin Shaffer still thinks he&#8217;ll be up and running on Apple&#8217;s platform in a few days, but until then, you can check out this video interview I shot with him yesterday, where you can get a sense of how the app will work.</p>
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<p>Or if you&#8217;re impatient, here it is in a nutshell: The service is supposed to let users converse in real-time about &#8220;events&#8221;&#8211;whether a football game, business conference or maybe even a really good house party.</p>
<p>You can already do that on Twitter and Facebook, but the pitch is that Hot Potato will help &#8220;curate&#8221; the chatter, so you will end up talking to both your friends and interesting people you don&#8217;t know&#8211;and that&#8217;s something Twitter and Facebook don&#8217;t do well right now.</p>
<p>If it works, there are some obvious advertising/sponsorship opportunities available for the service: The NFL could sponsor chatter about its games, for instance. Or someone who isn&#8217;t related to the football league could sponsor chatter about the games&#8211;since this is user-generated content in its purest form, Hot Potato isn&#8217;t required to get the go-ahead from anyone before it creates a conversational stream.</p>
<p>In any case, Hot Potato now has a pile of money to help it figure this stuff out. Last week, the company closed its first funding round of $1.4 million (I had originally reported that it was raising &#8220;about $1 million&#8221;), and in addition to VC backers First Round Capital and RRE Ventures, the start-up has an array of high-profile angel investors who have pitched in. </p>
<p>Here&#8217;s the roster: Super-angel investor Ron Conway; real-time start-up incubator Betaworks; Huffington Post co-founder Ken Lerer and his son Ben Lerer, who runs Thrillist; New York Observer owner Jared Kushner and his brother, Josh Kushner; ZelnickMedia&#8217;s Strauss Zelnick; Hunch and <a href="http://foundercollective.com/">Founder Collective</a> co-founder <a href="http://www.cdixon.org/about.html">Chris Dixon</a>; About.com co-founder Scott Kurnit; Facebook executive (and Apple vet) Dave Morin; Boxee&#8217;s Zach Klein; angel investor Allen Morgan; and entrepreneurs and investors Scott and Cyan Banister.</p>
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		<title>iPhone Users: We'll Pay for Content</title>
		<link>http://mediamemo.allthingsd.com/20091125/iphone-users-well-pay-for-content/</link>
		<comments>http://mediamemo.allthingsd.com/20091125/iphone-users-well-pay-for-content/#comments</comments>
		<pubDate>Wed, 25 Nov 2009 13:02:03 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Apple]]></category>
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		<category><![CDATA[Peter Kafka]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=13269</guid>
		<description><![CDATA[How do you get Web users to pay for content? Get an iPhone into their hands.

That's one conclusion you can draw from a new survey showing that people who own Apple handsets are more willing to pay for stuff than the average Internet surfer.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/11/for-the-birds.png"><img class="alignright size-medium wp-image-13274" title="for the birds" src="http://mediamemo.allthingsd.com/files/2009/11/for-the-birds-250x138.png" alt="for the birds" width="250" height="138" /></a>How do you get Web users to <a href="http://mediamemo.allthingsd.com/20091116/whos-going-to-pay-for-online-content-a-a-few-of-you-b-barely-anyone-c-youre-already-paying/">pay for content</a>? Get an iPhone into their hands.</p>
<p>That&#8217;s one conclusion you can draw from a new survey showing that people who own Apple (AAPL) handsets are more willing to pay for stuff than the average Internet surfer.</p>
<p>It&#8217;s a U.K. survey, conducted by the <a href="http://www.olswang.com/news.asp?sid=136">Olswang</a> media law firm, but my hunch is that you&#8217;d see similar results in the U.S. And given that consumers look much less likely to pay for stuff than publishers and distributors would like, it&#8217;s worth chewing on. <a href="http://www.guardian.co.uk/media/2009/nov/25/iphone-pay-online">Guardian</a>:</p>
<blockquote class="memo"><p>The survey showed that 58% of people would pay to access online a film just released in cinemas, 52% would pay for access to a film that will not be on DVD for at least two months and 40% would pay to access a film which is already on DVD or pay-TV. Looking at solely iPhone users, however, those figures jump to 73%, 67% and 54% respectively&#8230;.</p>
<p>News content, however, remains a tough online sell. The survey asked how willing consumers would be to buy a newspaper article or column which could be read on a computer or portable device such as a phone or e-reader. Only 19% of respondents expressed any willingness to pay&#8211;though that did increase to 30% among iPhone users.</p></blockquote>
<p>I&#8217;ve repeatedly been skeptical that consumers will pay for something solely because it&#8217;s on a mobile device&#8211;this is the key idea behind the <a href="http://mediamemo.allthingsd.com/20091118/conde-nasts-offering-for-apples-mystery-tablet-wired-magazine/">magazine industry&#8217;s</a> <a href="http://mediamemo.allthingsd.com/20091002/publishers-like-time-inc-s-hulu-for-magazines-proposal-what-will-apple-and-amazon-say/">digital</a> <a href="http://mediamemo.allthingsd.com/20091111/strength-in-numbers-news-corp-may-join-time-inc-s-hulu-for-magazines/">plans</a>&#8211;but I do think there are some cases where this might work.</p>
<p>My own anecdotal confirmation: My household just dropped $6 for three Pixar shorts for an iPhone 3G in a desperate attempt to provide some electronic babysitting/soothing. This, despite the fact that everything we bought is also available for free on YouTube. When you need the stuff, you can&#8217;t be dependent on a wireless connection.</p>
<p>Here&#8217;s one of the clips we spent $1.99 on:</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="283" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/i861adrvBZ4&amp;hl=en_US&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="283" src="http://www.youtube.com/v/i861adrvBZ4&amp;hl=en_US&amp;fs=1&amp;" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
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		<slash:comments>2</slash:comments>
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		<title>Is Everyone Using Twitter Yet? Nope.</title>
		<link>http://mediamemo.allthingsd.com/20091022/is-everyone-using-twitter-yet-nope/</link>
		<comments>http://mediamemo.allthingsd.com/20091022/is-everyone-using-twitter-yet-nope/#comments</comments>
		<pubDate>Thu, 22 Oct 2009 13:52:49 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Facebook]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=12317</guid>
		<description><![CDATA[It's easy to get the impression that everyone uses Twitter. And many people do! But new statistics indicate that four of five Web users are still Twitter-free. Worth keeping in mind as Google and Microsoft start plugging tweets into search results.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/04/weegee-crowd.jpg"><img class="alignright size-medium wp-image-6785" title="weegee-crowd" src="http://mediamemo.allthingsd.com/files/2009/04/weegee-crowd-230x300.jpg" alt="weegee-crowd" width="230" height="300" /></a>The digerati spend a lot of time talking about Twitter&#8217;s growth, Twitter&#8217;s business and Twitter&#8217;s dealmaking. But at this point, many of us tend to take Twitter&#8217;s users for granted: We assume that everyone uses it, or at least everyone we know.</p>
<p>But we&#8217;re not exactly right. New statistics from the <a href="http://pewinternet.org/Reports/2009/17-Twitter-and-Status-Updating-Fall-2009.aspx">Pew Internet Project </a>indicate that 19 percent of U.S. Internet users are on the service on a regular basis. To spell out the obvious: One in five is a lot of people, but it&#8217;s not everyone.</p>
<p>This is worth remembering as <a href="http://digitaldaily.allthingsd.com/20091021/twitter-in-microsoft-google-3-way/">Google</a> (GOOG) and <a href="http://kara.allthingsd.com/20091021/microsofts-qi-lu-talks-about-bing-and-confirms-facebook-and-twitter-real-time-data-deal-at-web-2-0/">Microsoft</a> (MSFT) move to integrate Twitter updates into search results: Those results come from a particular slice of Web users.</p>
<p>Here&#8217;s Pew&#8217;s breakdown of that slice, by gender, race and other demographic markers:</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/10/twitter-demo.png"><img class="alignnone size-full wp-image-12318" title="twitter demo" src="http://mediamemo.allthingsd.com/files/2009/10/twitter-demo.png" alt="twitter demo" width="350" height="454" /></a></p>
<p>Pew says the average age of a Twitter user is 31 (MySpace, 26; Facebook, 33; LinkedIn, 39). And it has some other stats that are useful&#8211;and, if you use the service, evident.</p>
<p>For instance, Twitter and mobile are a peanut butter/chocolate combination&#8211;25 percent of Internet users with wireless access use the service, compared with eight percent of those who are tethered. And, not surprisingly, gadget junkies are Twitter junkies too: 39 percent of Web users with four or more Internet devices use the service, compared to 10 percent with one device.</p>
<p>The full report is embedded below:</p>
<p><object id="_ds_13544311" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="550" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="name" value="_ds_13544311" /><param name="FlashVars" value="doc_id=13544311&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0" /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="src" value="http://viewer.docstoc.com/" /><param name="flashvars" value="doc_id=13544311&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0" /><param name="allowfullscreen" value="true" /><embed id="_ds_13544311" type="application/x-shockwave-flash" width="350" height="550" src="http://viewer.docstoc.com/" allowfullscreen="true" allowscriptaccess="always" flashvars="doc_id=13544311&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0" name="_ds_13544311"></embed></object><br />
<span style="font-size: xx-small;"><a href="http://www.docstoc.com/docs/13544311/PIP-Twitter-Fall-2009">PIP-Twitter-Fall-2009</a> &#8211; </span></p>
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		<title>Google: We're Hiring, and Spending, Again</title>
		<link>http://mediamemo.allthingsd.com/20091007/live-from-new-york-google-cofounder-sergey-brin-meets-the-press/</link>
		<comments>http://mediamemo.allthingsd.com/20091007/live-from-new-york-google-cofounder-sergey-brin-meets-the-press/#comments</comments>
		<pubDate>Wed, 07 Oct 2009 17:55:00 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11813</guid>
		<description><![CDATA[Google CEO Eric Schmidt used the opening moments of a New York City press conference to reinforce a message he's been delivering for several weeks: The worst is over, things are looking up, and Google is spending accordingly.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/01/eric-schmidt.jpg"><img class="alignright size-medium wp-image-3149" title="eric-schmidt" src="http://mediamemo.allthingsd.com/files/2009/01/eric-schmidt-300x200.jpg" alt="eric-schmidt" width="250" height="166" /></a>Google CEO Eric Schmidt used the opening moments of a New York City press conference to reinforce a message he&#8217;s been delivering for a <a href="http://mediamemo.allthingsd.com/20090626/google-less-unhappy-days-are-here-again/">couple</a> <a href="http://mediamemo.allthingsd.com/20090923/google-yahoo-going-shopping-again/">months</a>: The worst is over, things are looking up, and Google is spending accordingly.</p>
<p>Schmidt added a bit of nuance to that message today, noting that the company had been surprised to see its European business bounce back as quickly as it has. Here&#8217;s my transcript of his opening statement.</p>
<blockquote class="memo"><p>We are clearly seeing aspects of recovery, and what is notable is that we&#8217;re seeing aspects of recovery not just in the United States but in Europe. I had been in error in assuming that there would be a lag, that it would the U.S. first and Europe second. Asia, of course, was never significantly hit in the first place.</p>
<p>So that means from a Google perspective that&#8230;we never stopped hiring, but we told our team internally and again, we&#8217;ve said to many other people that we are increasing our hiring rate and our investment rate in anticipation of a recovery.</p></blockquote>
<p>Schmidt and Google co-founder Sergey Brin covered a lot of ground in the hour-plus press conference, and I&#8217;ll try to go back and break out out some of the other highlights. A few items worth noting in summary:</p>
<ul>
<li>Brin expressed contrition over recent <a href="http://digitaldaily.allthingsd.com/20090924/gmail-outage/">Gmail outages</a> and said the company was working both to prevent future failures and to react more quickly if and when they do happen. But he reiterated the argument, common among cloud-computing fans, that conventional email systems fail much more frequently.</li>
<li>Schmidt repeatedly defended the <a href="http://digitaldaily.allthingsd.com/20091007/nov-9-deadline-set-for-amended-google-book-deal/">proposed settlement</a> Google had reached with authors and publishers regarding its book archive. Recurring theme: It&#8217;s not a perfect settlement, but it&#8217;s workable.</li>
<li>Schmidt stressed the importance of porting Google&#8217;s Chrome browser to Apple&#8217;s Mac platform and said this would happen within months.</li>
<li>Schmidt said Google was working on ways to help publishers sell their work on the Web (via one-offs or subscription). But he said he had no interest in promoting one publisher&#8217;s results over another, as Associated Press officials had recently suggested: &#8220;We have to be very very careful not to favor one media organization over another, with regard to speed or latency.&#8221;</li>
<li>Schmidt, who&#8217;d previously noted that he expected Google to start making an acquisition per month, said that these would likely be small, five-to-ten-person companies. He added that it was unlikely the company would be in the market for something the size of a YouTube acquisition, which cost Google $1.65 billion. Translation: Don&#8217;t expect us to pony up billions for Twitter.</li>
</ul>
<p>Earlier: My live coverage of the press conference:</p>
<p>Google (GOOG) co-founder Sergey Brin is sitting down with about a dozen reporters in Google&#8217;s New York City headquarters for a Q&amp;A session. Tune in for live coverage. This should be a wide-ranging conversation, which I&#8217;ll attempt to cover live as well as I can. Please consider everything below to be a paraphrase unless it&#8217;s in quotes.</p>
<p>Brin is joined by Google CEO Eric Schmidt. Brin gives an unofficial intro.</p>
<p><strong>Schmidt adds his own informal introduction.</strong></p>
<p>Schmidt: We&#8217;re here because we have a global sales meeting in New York, and we&#8217;re winding that up right now. A series of internal talks, and the mood was &#8220;very, very positive.&#8221; We told them that &#8220;the worst is behind us&#8221; (which Schmidt has said before). We&#8217;re seeing recovery not just in the U.S., but in Europe as well. I had been in error in thinking it would be U.S. first, then Europe second. Asia is less important, obviously. We&#8217;re increasing our hiring rate and investment rate in an anticipation of a recovery.</p>
<p><strong>Brin discusses some tweaks to search. Do you feel that Microsoft&#8217;s innovations with Bing will cause you to accelerate your innovations?</strong></p>
<p>Brin: Competition is healthy. Microsoft (MSFT) has made its contributions. So has Cuill. Many of the tweaks in Bing we&#8217;d already seen from Microsoft Live earlier in the year.</p>
<p>Schmidt: I agree!</p>
<p><strong>But do you think Bing is really different? Or just a rebranding.</strong></p>
<p>Brin: [Demurs]</p>
<p>Schmidt: You guys should judge us and our competitors. We&#8217;ve been criticized for having a self-referential view of the world. But I&#8217;d argue that our success so far proves that&#8217;s been a good strategy.</p>
<p><strong>Please talk about Android and other mobile plans.</strong></p>
<p>Brin: We started with Android because it was a problem for us, as an end-user and a developer, that phones lacked powerful browsers and the ability to install powerful apps. I think Android has addressed this very well, but it has also pushed the market. It has pushed Apple (AAPL) with the iPhone and RIM (RIMM) and Windows Mobile. I&#8217;m pretty excited about the future; they&#8217;re getting increasingly capable browsers, and you can now write native applications across five platforms that will cover most smart phones. I think that having the software platform has freed the hardware makers from spending time on that, and they can rejuvenate their efforts on hardware.</p>
<p><strong>Please talk about enterprise efforts.</strong></p>
<p>Brin: We started in enterprise, like mobile, to address our own needs. When we started with mail in &#8216;04, Web email was like a toy. We really focused on something that would work in an enterprise and then made it available to consumers. We feel we&#8217;re farther ahead (than competitors) both in email and in collaborative document-editing. We&#8217;re moving toward eventually having everything (all our applications) available everywhere. &#8220;I just think the cloud model is a better model&#8230;.I do think this install-less model of a cloud is better&#8230;.It&#8217;s definitely made me more productive.&#8221;</p>
<p>More on enterprise from Brin: We&#8217;ve been successful with both SMB [small and medium business] and increasingly with enterprise. We&#8217;ve got a big implementation with Genetech (DNA), and in Washington D.C. We&#8217;re specifically adding features for enterprise. That&#8217;s part of the Postini acquisition&#8211;to add some of those email features for enterprises. You&#8217;d be surprised to hear some of the things businesses ask for.</p>
<p><strong>Please talk about recent Gmail outages.</strong></p>
<p>Brin: Certainly we&#8217;re not happy with any outages. With those outages we&#8217;re at the &#8220;three nines&#8221; level, which is not where we want to be. Targeting &#8220;four nines&#8221; by end of quarter. We&#8217;ll let you know how we do. Focusing not only on outages, which we don&#8217;t like, but recovery time. Second outage could have been resolved in five or ten minutes, but we made errors in handling it, and it extended over an hour. But if you look at a typical enterprise today, those outages tend to add up to more than even these kinds of outages that we had in Q3. Also, we&#8217;re working on the number of people affected by outages. Trying to group people into pods so that if one goes down it doesn&#8217;t affect others.</p>
<p><strong>You&#8217;re adding more complexity to search. It&#8217;s more confusing than it ever was. Same thing with site links. Is that an issue (it is for Danny Sullivan)?</strong></p>
<p>Brin: I&#8217;d like to see all the options, available in all the corpuses. We don&#8217;t have all the same options in each offering. In terms of the links and snippets that we&#8217;re offering, we&#8217;re trying to experiment with that.</p>
<p><strong>On Google book deal: If the judge asked you why he shouldn&#8217;t be concerned by the concentration of Google&#8217;s power, what would you say?</strong></p>
<p>Schmidt: It&#8217;s an error to answer a theoretical question from a journalist. But anyway, we won&#8217;t get that kind of question. With respect to book search, we were doing something that we thought was appropriate. We were sued, and after three years of discussion, we&#8217;ve come to a settlement. This is perfectly normal. From our perspective, this is a settlement we like, it&#8217;s a settlement we think they&#8217;ll like, and we&#8217;ll hear what the court says, within minutes. Let me reframe your question: There&#8217;s nothing particularly exclusive about what we&#8217;re doing. The rights registry we&#8217;re doing is for the benefit of orphan works. &#8220;It&#8217;s not a particularly good business for us. We&#8217;re going it because we think it&#8217;s the right thing to do.&#8221; We  don&#8217;t think the settlement is perfect, but we think it&#8217;s good.</p>
<p><strong>What are plans to expand book search?</strong></p>
<p>Schmidt: We&#8217;re already huge. There are millions of books that have never been read, and we&#8217;re going to deliver readers to those books.</p>
<p>Brin: We want as many works as possible in some form, because that&#8217;s of tremendous value.</p>
<p>Schmidt: This doesn&#8217;t cover all international books, all books in the world. [Some disagreement about this between Brin and Schmidt]. It will take time to get the registry up and running, so for the near future I think that&#8217;s all we can achieve.</p>
<p><strong>Back to the economy, please.</strong></p>
<p>Schmidt: We&#8217;ve tried for a while to figure out if Google is an accurate predictor of the economy, and we can&#8217;t prove it. If we could, we&#8217;d brag about it. Last early in the year we saw a decline in U.K., which surprised us. From our perspective, the low point was somewhere in the spring. Which is why I said worst was behind us in May, June. We noticed a recovery &#8220;June-ish.&#8221; The conventional wisdom is that U.S. recessions are 18-24 months. Bernanke sees a recovery too, which we agree with. Conventional wisdom was that Europe would lag by three-five months, which we&#8217;re not seeing. Europe is not one country, and it varies a great deal depending on which country we&#8217;re in. I won&#8217;t go in to specifics but it&#8217;s the obvious stuff&#8211;the countries that didn&#8217;t have a big bump did not have a big fall. More on being a leading indicator: Obviously we&#8217;re a leading indicator in advertising.</p>
<p>Brin: And we&#8217;re good indicator for consumer spending, and you can see for yourself by looking at Google trends.</p>
<p><strong>It seems as if Chrome isn&#8217;t having the impact with consumers that you would like.</strong></p>
<p>Brin: [Starts, then stopped by Schmidt]</p>
<p>Schmidt: Some of your premise about Chrome is incorrect, in terms of adoption, and we&#8217;re going to get that message out.</p>
<p>Brin: It&#8217;s actually exceeding our benchmarks.</p>
<p>Schmidt: I see a lot of Macs in this room, and a lot of very sophisticated people are using Macs now and we need to get a version of Chrome out for that, which we&#8217;ll have in a couple of months. Key to browser strength is speed. In general, we announced Chrome OS and Chromium product. Everything is linked together: Cloud, chrome, etc.</p>
<p><strong>At one point do Android and the Chrome OS come together or not come together?</strong></p>
<p>Schmidt: Current definition of use platforms has to do with use patterns. Android for mobile, delivered via telecom store, heavily integrated with telco offerings, like our Verizon (VZ) deal, which we&#8217;re enormously excited about. The analog for Chrome is that it&#8217;s designed for a 10, 12-inch form factor. They both use Linux, etc. But they&#8217;re designed for different uses. [Netbooks?] May be some overlap there.</p>
<p><strong>Is Google being too nice? Is there a rethinking of relationships with aggrieved groups?</strong></p>
<p>Schmidt: In many ways we&#8217;ve always wanted to be this Google as opposed to the way we were perceived a few years ago. We&#8217;re particularly proud of the way we&#8217;re working with advertising agencies, which is very important to us. With the media industry, we&#8217;re having success with YouTube and YouTube monetization, and we&#8217;ll have more on that coming forward&#8230;.&#8221;We have always wanted to have these partnerships&#8230;.We&#8217;re learning how to do them in a way that they win, too.&#8221;</p>
<p>Brin: People can now differentiate between us and the Internet.</p>
<p>Schmidt: Google is an innovator. The Internet is causing collisions. Innovation plus collisions equals opportunity. For instance, the fact that Verizon has embraced most of the open principles that we put forth five years ago is shocking. &#8220;It&#8217;s pretty amazing. This is Verizon. It&#8217;s not some itty-bitty telecom start-up.&#8221;</p>
<p><strong>Are you uncomfortable with Google employees&#8217; sense of entitlement? [Per new Ken Auletta book]</strong></p>
<p>Brin: [Refers to layoffs--Schmidt corrects him: "We did not have layoffs."] [Addendum: Schmidt was talking about Google closing engineering offices in Phoenix and other locations; Google did have layoffs last winter.] You&#8217;re right:</p>
<p><strong>What do you think about publishers requiring pay walls, and how will you help surface that.</strong></p>
<p>Schmidt: We&#8217;re starting with that YouTube. Overall, &#8220;there&#8217;s clearly a market for free content, and that market is the size of the Internet.&#8221; Also a market for subscription/paid. The analogy I would offer is TV. We all grew up with &#8220;free&#8221; TV. Now almost everyone pays for cable, and some people pay for pay-per-view, &#8220;which is ridiculously expensive,&#8221; but people will pay for particular events, like boxing. I think all three of those uses will emerge. We&#8217;re working on payment models, subscriptions, to enable that.</p>
<p><strong>But what about surfacing paid content in search [this comes from WSJ.com editor Alan Murray]? Will you factor the desire of someone to pay for content into results?</strong></p>
<p>Schmidt: We&#8217;re not going to use the price you use as our ranking in results. That&#8217;s not going to be our signal. But we&#8217;ll incorporate the price people are paying for your content into results. But I&#8217;m not going to answer this precisely because I don&#8217;t want to discuss how we produce results. The most interesting improvement you could make is that to the degree that we have more of the marketplace data available, we could take that information and reflect some of that in our rankings.</p>
<p><strong>The AP CEO said Google or Microsoft might be willing to pay a premium for an advance look at the news.</strong></p>
<p>Schmidt: We have a deal with the AP, and I don&#8217;t want to talk about any specifics of any deal. I don&#8217;t think that&#8217;s proper. &#8220;We have to be very very careful not to favor one media organization over another, with regard to speed or latency.&#8221; We are staying out of the media business. &#8220;You guys are very good at it, and we&#8217;re not.&#8221;</p>
<p>[Apologies for tech error; I missed the specific question and part of the following exchange, but the subject is entitlement.]</p>
<p>Brin: We cut down on snacks, etc. to &#8220;reset expectations&#8221; regarding entitlement.</p>
<p>Schmidt: &#8220;Google pays very well. Google is clearly a growth company. People at Google don&#8217;t work for those reasons at Google. We don&#8217;t want them to come to work for Google for those reasons. We want people to come to Google to change the world. Life is short.&#8221; The tightening in the last year has been good for this, by the way, the controls put into place by Patrick Pichette, who is our hero, have been very helpful.</p>
<p><strong>Please talk about M&amp;A plans and goal of one acquisition per month.</strong></p>
<p>Schmidt: That&#8217;s been our historic pattern. I think we will be buying small companies&#8211;five, ten people. That&#8217;s where some of our best stuff has been. One day Larry and Sergey bought Android, and I didn&#8217;t even notice. Think about the strategic opportunities that has created. Sergey found Google Earth one day while he was surfing on the Web. And then he walked into my office and told me he bought them. &#8220;And I said, &#8216;for how much, Sergey?&#8217; And it turned out to be a few million.&#8221;</p>
<p><strong>Would you buy a YouTube?</strong></p>
<p>Schmidt: Is there another one to buy? The problem with that size of acquisition is that you have to make your money back. I think that DoubleClick and YouTube will be two of our best acquisitions. DoubleClick is already close to paying back, and YouTube will get there soon. But bear in mind that any major acquisition now will involve a regulatory review, because of our size and because our competitors will make sure of that.</p>
<p><strong>[Sorry, missed another question]</strong></p>
<p><strong>Do you anticipate making large upfront commitments for new or renewed search deals [as you did with MySpace and AOL]?</strong></p>
<p>Schmidt: I&#8217;d rather not comment on search deals. We are in discussions with both of those companies. &#8220;Some of our best friends are in those companies.&#8221;</p>
<p><strong>[Missed yet another one]</strong></p>
<p><strong>What will new tablet machines [like Apple's] mean for you? And to content producers?</strong></p>
<p>Brin: Hardware is getting amazing with regard to cost. Used to be that display was expensive. Now that&#8217;s cheap, and so are chips, etc. Now, the main cost is broadband connection, or cellular, or however you get to the Internet. That&#8217;s why wide broadband availability is important to us. Think about how much you spend on access costs compared to the amount you spend on your handset. The phone cost is negligible.</p>
<p>Schmidt: Not sure how to answer question. We provide the infrastructure below what you&#8217;re talking about [touch interfaces, etc.]. Kindle is a good example. Don&#8217;t think about current one, think about one two or three years out. I think there will be many kinds of things like Kindles, and that&#8217;s a material change in the way people will interact with hardware, media.</p>
<p>Brin: I think it&#8217;s better if hardware isn&#8217;t locked down to specific platforms.</p>
<p>[Long exchange between Schmidt and Danny Sullivan that I'll have to pick up later]</p>
<p><strong>Should Google be required to lease servers and access to Google checkout numbers to deal with &#8220;lock-in&#8221; issues that broke up the telcos?</strong></p>
<p>Schmidt: Google Checkout isn&#8217;t interesting. But I think your analogy is wrong and that there are no data to support your theses.</p>
<p><strong>[I missed the next question on the book settlement about orphan works, etc.] </strong></p>
<p>Schmidt: A lot of these complaints are being made by people who don&#8217;t want a solution.</p>
<p><strong>What are the reasonable book settlement proposals you&#8217;ve seen?</strong></p>
<p>Schmidt: Goal is to get all the books to everyone and to get all the authors compensated properly. Some of the proposals make sense to me, but I don&#8217;t want to characterize them. Not a perfect solution, but the best one we can do.</p>
<p><strong>How will book settlement affect international users?</strong></p>
<p>Brin: It won&#8217;t. We&#8217;d love settlements that work across a range of countries.</p>
<p><strong>Why won&#8217;t you be like Microsoft with regard to antitrust?</strong></p>
<p>Schmidt: Many reasons. Culture, for one. Another reason is that majority of users are one click away from moving away from us. Third: If we went into an &#8220;evil room&#8221; and had an &#8220;evil light&#8221; shined on us, and we then behaved in an &#8220;evil way&#8221; we would be destroyed&#8230;.There is a fundamental trust between Google and its users.&#8221;</p>
<p>Schmidt walks through &#8220;ludicrous&#8221; thought experiment whereby Chrome takes 80 percent of market share and then tries to lock consumers in, noting that it wouldn&#8217;t work due to open source.</p>
<p><strong>Do you think you&#8217;ll take another stab at moving into radio, print?</strong></p>
<p>Brin: We are quite optimistic on the TV front. Radio and print didn&#8217;t pan out as well as we thought initially. One of the reasons is that those mediums are moving online and consumers are moving online and the publishers/producers want to work with us there. &#8220;We were kind of at the dock where the ship had already left.&#8221; But TV is quite similar to the Web in terms, potentially, of measurability, so we&#8217;re excited about those prospects.</p>
<p><strong>Is page rank broken? People are gaming it, etc.</strong></p>
<p>Brin: No. We have to continually develop. Part of the issue is span, but the main issue is that everything changes. We&#8217;re doing a much better job of ranking than we did a decade ago. If we just rested on our laurels with what we wrote in paper from 1998, we&#8217;d be in big trouble.</p>
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			<wfw:commentRss>http://mediamemo.allthingsd.com/20091007/live-from-new-york-google-cofounder-sergey-brin-meets-the-press/feed/</wfw:commentRss>
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		<title>Ask.com's Newest Offer: Discount Search</title>
		<link>http://mediamemo.allthingsd.com/20091006/ask-coms-newest-offer-discount-search/</link>
		<comments>http://mediamemo.allthingsd.com/20091006/ask-coms-newest-offer-discount-search/#comments</comments>
		<pubDate>Tue, 06 Oct 2009 11:49:21 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<category><![CDATA[Barry Diller]]></category>
		<category><![CDATA[click-through]]></category>
		<category><![CDATA[coupons]]></category>
		<category><![CDATA[IAC]]></category>
		<category><![CDATA[rates]]></category>
		<category><![CDATA[search engine]]></category>
		<category><![CDATA[search market]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11753</guid>
		<description><![CDATA[Barry Diller has tried just about every gambit possible to boost his Ask.com search engine, but he keeps coming up with more. The latest: Coupons.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/10/ask.com-deal.png"><img src="http://mediamemo.allthingsd.com/files/2009/10/ask.com-deal-250x116.png" alt="ask.com deal" title="ask.com deal" width="250" height="116" class="alignright size-medium wp-image-11756" /></a>Barry Diller has tried just about every gambit possible to boost his Ask.com search engine, but he keeps coming up with more. The latest: Coupons.</p>
<p>IAC (IACI) has rolled out <a href="http://www.ask.com/deals">Ask.Deals</a>, a dedicated section for bargain hunters and coupon clippers. The site has its own tab on the search engine, but Ask is also featuring it prominently in regular search results: Plug in <a href="http://www.ask.com/web?q=cheap+ipod&amp;search=search&amp;qsrc=0&amp;o=0&amp;l=dir">&#8220;cheap ipods,&#8221;</a> for example, and you&#8217;ll have to work very hard not to end up in the new section.</p>
<p>Can&#8217;t hurt. Can it help? Ask has been mired at just under four percent of the U.S. search market for a long time and it seems unlikely that rejiggering its search results will attract new users in significant numbers. It is possible that Ask can boost click-through rates, and thus dollars, though, which would be nice.</p>
<p>Then again, Yahoo (YHOO) and Microsoft (MSFT) are trying variants on the same idea. And perhaps more tellingly, Google (GOOG) isn&#8217;t doing much with this stuff at all.</p>
<p><object width="350" height="283"><param name="movie" value="http://www.youtube.com/v/LLnoLmCqT30&#038;hl=en&#038;fs=1&#038;"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/LLnoLmCqT30&#038;hl=en&#038;fs=1&#038;" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="350" height="283"></embed></object></p>
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		<title>YouTube Yawns at Letterman's Extortion Story</title>
		<link>http://mediamemo.allthingsd.com/20091003/youtube-yawns-at-lettermans-extortion-story/</link>
		<comments>http://mediamemo.allthingsd.com/20091003/youtube-yawns-at-lettermans-extortion-story/#comments</comments>
		<pubDate>Sat, 03 Oct 2009 15:16:42 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<category><![CDATA[Peter Kafka]]></category>
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		<category><![CDATA[television]]></category>
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		<category><![CDATA[David Burch]]></category>
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		<category><![CDATA[Kimbo Slice]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11693</guid>
		<description><![CDATA[In certain circles, David Letterman's extortion/adultery story is huge news. On YouTube? It's overshadowed by an "Ultimate Fighter" match.]]></description>
			<content:encoded><![CDATA[<p>In certain circles, David Letterman&#8217;s extortion/adultery story is huge news. On YouTube? It&#8217;s a yawn.</p>
<p>Don&#8217;t get me wrong: Google&#8217;s (GOOG) video site still appears to be the only place to see <a href="http://mediamemo.allthingsd.com/20091002/now-on-youtube-david-lettermans-amazing-extortion-video/">Letterman&#8217;s jaw-dropping admission</a> that he has had affairs with staffers on his show and that a CBS (CBS) employee attempted to extort him with that information.</p>
<p>Those clips aren&#8217;t supposed to be there, and CBS and YouTube keep taking them down, but people keep uploading them. <a href="http://www.youtube.com/watch?v=MRnvRQXIwQo">Here&#8217;s one</a> that appears to come from a Portuguese user, for instance.</p>
<p>But I had a hunch that the story, which involves a man who has been on late night TV longer than many YouTube users have been alive, might not resonate with the site&#8217;s core demo. And data from video-tracking service <a href="http://www.tubemogul.com/">TubeMogul</a> make me think that&#8217;s the case. Here&#8217;s the report I got from TubeMogul marketing director David Burch:</p>
<blockquote class="memo"><p>Pirated versions only racked up 130,624 views throughout the day, mostly because CBS didn&#8217;t post an official version of the clip and was issuing take-down orders (they had already removed five versions of the clip by the time we ran our first report this morning). By way of comparison, pirated clips of the UFC Kimbo Slice fight totaled 1,074,531 views in the past 24 hours.</p>
<p>Oddly, CBS News&#8217; channel released four news videos about the story today, but youtube.com/cbs only had Letterman&#8217;s Madonna interview rather than the clip everyone actually wanted to see.</p></blockquote>
<p>Never heard of Kimbo Slice before? Like <a href="http://mediamemo.allthingsd.com/20090918/is-youtubes-biggest-star-ready-for-the-big-screen/">Fred</a>, he&#8217;s yet another YouTube sensation, albeit one who&#8217;s graduated to TV.</p>
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		<title>Good News, T. Rowe Price! Twitter Users Really, Really Love Ads.</title>
		<link>http://mediamemo.allthingsd.com/20090924/good-news-t-rowe-price-twitter-users-really-really-love-ads/</link>
		<comments>http://mediamemo.allthingsd.com/20090924/good-news-t-rowe-price-twitter-users-really-really-love-ads/#comments</comments>
		<pubDate>Thu, 24 Sep 2009 19:38:25 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Facebook]]></category>
		<category><![CDATA[Internet]]></category>
		<category><![CDATA[MediaMemo]]></category>
		<category><![CDATA[Peter Kafka]]></category>
		<category><![CDATA[Twitter]]></category>
		<category><![CDATA[advertising]]></category>
		<category><![CDATA[digital]]></category>
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		<category><![CDATA[ads]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=11381</guid>
		<description><![CDATA[Good news (potentially) for T. Rowe Price and the other investors plowing $100 million into the revenue-free start-up: The service's users absolutely love clicking on ads, says a new study.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/03/times-square.jpg"><img class="alignright size-medium wp-image-4735" title="times-square" src="http://mediamemo.allthingsd.com/files/2009/03/times-square-300x199.jpg" alt="times-square" width="250" height="165" /></a>So now that Twitter has its $1 billion valuation (and another<a href="http://voices.allthingsd.com/20090924/twitter-to-raise-100-million-from-insight-t-rowe-price-other-investors/"> $100 million in cash</a>, not the <a href="http://mediamemo.allthingsd.com/20090916/twitter-goes-for-broke-if-broke-means-a-lot-of-money-new-funding-round-at-1-billion-valuation/">$50 million</a> that I&#8217;d previously heard), how is the revenue-free company going to start making money?</p>
<p>The perennial, and obvious, solution is to incorporate ads into the service, but so far Twitter hasn&#8217;t tried it, except for very <a href="http://mediamemo.allthingsd.com/20090326/another-twitter-ad-att-sponsors-march-tweetness/">limited experiments</a>.</p>
<p>The good news for Twitter and its investors is that the service&#8217;s user base is pretty receptive to advertising, in general terms, because it&#8217;s pretty receptive to just about everything on the Web.</p>
<p>So says research group <a href="http://interpretllc.com/">Interpret LLC</a>, which has a new study out today, conveniently enough. From the release:</p>
<blockquote class="memo"><p>Twitter users are twice as likely to review or rate products online (24% vs. 12%), visit company profiles (20% vs. 11%) and click on advertisements or sponsors (20% vs.9%) as those who only belong to traditional social networking websites like Facebook and MySpace. The data suggests that Twitter users uniquely demonstrate higher engagement with brands, not just with &#8220;tweets&#8221; they post.</p></blockquote>
<p>These statistics are self-reported, and Interpret doesn&#8217;t say how big a sample its survey used, so take them with as much salt as you like. But they seem intuitively and directionally correct: Anyone willing to plug into the waves of information that Twitter pumps out is likely engaged all over the Web.</p>
<p>Note what the Interpret report doesn&#8217;t say: That Twitter users are eager to have ads inserted into the service itself.</p>
<p>Doesn&#8217;t matter. At some point, they&#8217;re unlikely to have a choice about that because it seems hard to imagine that Twitter can ever deliver on its investors&#8217; sky-high expectations without generating some kind of money, somehow, from Madison avenue.</p>
<p>Which is exactly why Biz Stone and crew, who once made a point of expressing their derision for ads, now make a point of saying that <a href="http://mediamemo.allthingsd.com/20090911/twitter-gives-spam-apps-a-thumbs-down-ads-a-maybe/">ads may not be such a terrible thing, after all</a>.</p>
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		<title>Here Comes the Google Ad Exchange</title>
		<link>http://mediamemo.allthingsd.com/20090915/here-comes-the-google-ad-exchange/</link>
		<comments>http://mediamemo.allthingsd.com/20090915/here-comes-the-google-ad-exchange/#comments</comments>
		<pubDate>Tue, 15 Sep 2009 10:00:56 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
		<category><![CDATA[Internet]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10914</guid>
		<description><![CDATA[Google is about to flip the switch on its long-awaited Ad Exchange.

The search giant will reportedly open up its AdX service, which is supposed to bring together ad buyers and sellers the same way a stock market does, within the next two weeks. AdX isn't a surprise, but it is a big deal.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/wall-street-buttonwood-tree.jpg"><img class="alignright size-medium wp-image-10961" title="wall street buttonwood tree" src="http://mediamemo.allthingsd.com/files/2009/09/wall-street-buttonwood-tree-250x265.jpg" alt="wall street buttonwood tree" width="250" height="265" /></a>Google is about to flip the switch on its long-awaited Ad Exchange.</p>
<p>The search giant will reportedly open up its AdX service, which is supposed to bring together ad buyers and sellers the same way a stock market does, within the next two weeks. <a href="http://www.clickz.com/3634937">ClickZ</a> says the exchange is supposed to open in conjunction with next week&#8217;s AdWeek festivities in New York.</p>
<p>That timeline sounds right to me. Google (GOOG) has already been inviting selected clients to try out the system, which is based on the one DoubleClick ran before Google acquired the firm last year. Google told potential buyers via email that it will begin integrating their ads into the exchange this week.</p>
<p>None of this will have any impact on Google&#8217;s search users, but it&#8217;s potentially important for online advertisers and publishers.</p>
<p>Until now, the online exchange market has been dominated by Yahoo&#8217;s (YHOO) Right Media, but Google will become an instant rival as soon as it opens its doors. Meanwhile, Microsoft&#8217;s (MSFT) offering, AdECN, seems stuck in the starting gate.</p>
<p>Google&#8217;s exchange will open shortly after the <a href="http://mediamemo.allthingsd.com/20090909/one-more-googler-gone-doubleclick-adexchange-boss-michael-rubenstein/">departure of its manager, Michael Rubenstein</a>, who is now president of ad tech start-up AppNexus.</p>
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		<title>Universal Music Gets Slapped in Court. What Does This Mean for Veoh&#8211;and YouTube?</title>
		<link>http://mediamemo.allthingsd.com/20090914/universal-music-gets-slapped-in-court-what-does-that-mean-for-veoh-and-youtube/</link>
		<comments>http://mediamemo.allthingsd.com/20090914/universal-music-gets-slapped-in-court-what-does-that-mean-for-veoh-and-youtube/#comments</comments>
		<pubDate>Tue, 15 Sep 2009 05:03:40 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10935</guid>
		<description><![CDATA[Just how big a deal was a federal judge's ruling Monday in the copyright-infringement fight between Veoh and Universal Music Group? Depends on who you ask, of course.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/pacino.png"><img class="alignright size-medium wp-image-10955" title="pacino" src="http://mediamemo.allthingsd.com/files/2009/09/pacino-250x138.png" alt="pacino" width="250" height="138" /></a>Just how big a deal was a federal judge&#8217;s ruling Monday in the copyright-infringement fight between Veoh and Universal Music Group?</p>
<p>Depends on who you ask, of course.</p>
<p>Executives at Veoh say Judge A. Howard Matz has given them a new lease on life, and at least some of the company&#8217;s investors are doing some <a href="http://twitter.com/ToddDOwl/status/3983519223">chest-beating</a>. Universal, the world&#8217;s largest music label, says it&#8217;s confident it will win an appeal.</p>
<p>You can get the same split opinion by asking two different companies that happen to be locked in a similar fight. Executives at Google&#8217;s (GOOG) YouTube, which is trying to fend off a copyright suit filed by Viacom (VIA), say the Veoh ruling bolsters their case. You can guess what Viacom says.</p>
<p>The gist of the fight: Universal says Veoh didn&#8217;t try hard enough to keep illegally uploaded material off the video site; Veoh says it made a good-faith effort. Matz agreed with Veoh and tossed out Universal&#8217;s claims.</p>
<p>Even if you disregard the posturing, it&#8217;s fair to say there&#8217;s a genuine debate over the ruling&#8217;s meaning. Veoh, along with some of my bloggy colleagues, is treating the decision as the final word on Web copyright disputes, or at least those that involve the <a href="http://en.wikipedia.org/wiki/Digital_Millennium_Copyright_Act">Digital Millennium Copyright Act</a>.</p>
<p>And Matz certainly slapped Universal around. But it&#8217;s worth noting that copyright owners have lost Web cases in the Ninth District before, but ultimately won on appeal. Ask <a href="http://en.wikipedia.org/wiki/Grokster">Grokster</a>, the now-defunct file-sharing network that dissolved after a 2005 Supreme Court ruling.</p>
<p>You can read all of Matz&#8217;s judgment at the bottom of this post. But this excerpt, in which he argues that simply having illegal material on your site isn&#8217;t a crime, and neither is knowing about it (at least, in a general sense), gives you a good idea of Matz&#8217;s thrust and tone:</p>
<blockquote class="memo"><p>No doubt it is common knowledge that most websites that allow users to contribute material contain infringing items. If such general awareness were enough to raise a “red flag,” the DMCA safe harbor would not serve its purpose of &#8220;facilitat[ing] the robust development and world-wide expansion of electronic commerce, communications, research, development, and education in the digital age,” and “balanc[ing] the interests of content owners, on-line and other service providers, and information users in a way that will foster the continued development of electronic commerce and the growth of the Internet.&#8221;</p></blockquote>
<p>Legal debate aside, the ruling does give a practical benefit for Veoh. It allows the company to fetch a higher price on the auction block.</p>
<p><a href="http://mediamemo.allthingsd.com/20090706/is-veoh-the-next-video-site-to-go/">CEO Dmitry Shapiro has been shopping the site to bidders over the summer</a>, and as of a few months ago, he was willing to accept less than the $70 million investors like Time Warner (TWX), Goldman Sachs (GS) and former Disney (DIS) CEO Michael Eisner have poured into the site.</p>
<p>Selling a Web video site in 2009 is a tough challenge without a handicap, but the lawsuit was a big one. It was a huge time-and-money suck&#8211;Veoh may have spent as much as $6 million fighting the case in the last two years&#8211;and more important, the unresolved case was a huge liability. Who wants to buy a lawsuit?</p>
<p>Now, Shapiro says, Veoh&#8217;s options include not selling at all. He insists that some of Veoh&#8217;s existing backers are willing to recapitalize the company and that new investors might join in as well.</p>
<p>I&#8217;ll take him at his word, but if I had to bet, I&#8217;d wager that Veoh ends up getting acquired sooner than later. Maybe quite soon&#8211;the company has a board meeting today.</p>
<p>Wonder what they&#8217;ll talk about?</p>
<p><object id="_ds_11293076" classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="550" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="name" value="_ds_11293076" /><param name="FlashVars" value="doc_id=11293076&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " /><param name="allowScriptAccess" value="always" /><param name="allowFullScreen" value="true" /><param name="src" value="http://viewer.docstoc.com/" /><param name="flashvars" value="doc_id=11293076&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " /><param name="allowfullscreen" value="true" /><embed id="_ds_11293076" type="application/x-shockwave-flash" width="350" height="550" src="http://viewer.docstoc.com/" allowfullscreen="true" allowscriptaccess="always" flashvars="doc_id=11293076&amp;mem_id=288399&amp;doc_type=pdf&amp;fullscreen=0&amp;showrelated=0&amp;showotherdocs=0&amp;showstats=0 " name="_ds_11293076"></embed></object><br />
<span style="font-size: xx-small;"><a href="http://www.docstoc.com/docs/11293076/VEOH"> VEOH</a> &#8211; </span></p>
<p>Still here? How about that? You get a bonus video! (But be warned: Pacino chews up a lot of scenery here, and there is some impassioned cursing.)</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="283" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/u8xERDVD8kw&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /><embed type="application/x-shockwave-flash" width="350" height="283" src="http://www.youtube.com/v/u8xERDVD8kw&amp;hl=en&amp;fs=1&amp;" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
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		<title>Twitter Gives Spam Apps a Thumbs Down, Ads a "Maybe"</title>
		<link>http://mediamemo.allthingsd.com/20090911/twitter-gives-spam-apps-a-thumbs-down-ads-a-maybe/</link>
		<comments>http://mediamemo.allthingsd.com/20090911/twitter-gives-spam-apps-a-thumbs-down-ads-a-maybe/#comments</comments>
		<pubDate>Fri, 11 Sep 2009 10:00:05 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Facebook]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10855</guid>
		<description><![CDATA[It's one of those mysteries that are so deep, so mysterious, they may never be solved: When Twitter co-founder Biz Stone says the company would "like to leave the door open for advertising," what exactly does he mean? My guess: Twitter would like to leave the door open for advertising. Meanwhile, the company cracks down, a bit, on spammy apps.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/kevin-costner-jfk.jpg"><img class="alignright size-medium wp-image-10858" title="kevin costner jfk" src="http://mediamemo.allthingsd.com/files/2009/09/kevin-costner-jfk-250x174.jpg" alt="kevin costner jfk" width="250" height="174" /></a>It&#8217;s one of those mysteries that are so deep, so mysterious, they may never be solved: When Twitter co-founder Biz Stone says the company would &#8220;like to leave the door open for advertising,&#8221; what <em>exactly</em> does he mean?</p>
<p>Twitter Kremlinologists are currently <a href="http://www.techmeme.com/090910/p98#a090910p98">scouring</a> Stone&#8217;s Delphic statement, contained in a <a href="http://blog.twitter.com/2009/09/twitters-new-terms-of-service.html">blog post</a> yesterday, announcing changes to the company&#8217;s <a href="http://twitter.com/tos">Terms of Service</a>.</p>
<p>My guess: Twitter would like to leave the door open for advertising. One day. Maybe. Possibly. You never know.</p>
<p>Or, as the company notes within the new TOS itself: &#8220;We&#8217;re leaving the door open for exploration in this area but we don&#8217;t have anything to announce.&#8221;</p>
<p>Okay. So maybe not <em>quite</em> so mysterious.</p>
<p>The rest of the new TOS seems similarly uneventful, and given that Twitter reserves the right to change any of it at any time&#8211;that&#8217;s boilerplate language for these things&#8211;methinks it&#8217;s hard to get worked up about any of this. It&#8217;s certainly hard to see a <a href="http://kara.allthingsd.com/20090218/boomtown-decodes-the-zuckerberg-terms-of-service-my-bad-memo-now-with-10-percent-more-so-very-sorrys/">Facebook-style</a> <a href="http://kara.allthingsd.com/20090226/liveblogging-the-facebook-our-tos-is-your-tos-press-conference/">flare-up</a> in the works.</p>
<p>Anyway, if you want to go really, really deep here, go nuts: Twitter has helpfully kept a copy of its <a href="http://twitter.com/tos/previous">old TOS</a> up on the site (nice catch, <a href="http://www.readwriteweb.com/archives/twitter_solidifies_governance_new_terms_keep_out_b.php">ReadWriteWeb</a>). So you can compare and contrast to your heart&#8217;s content.</p>
<p>One change that might actually be a tiny bit meaningful for run-of-the-mill users comes not from the TOS itself, but from <a href="http://twitter.com/apirules">Twitter&#8217;s new rules for developers</a> who tap into its data stream to create their own Twitter-powered services.</p>
<p>The relevant language: &#8220;Get each user&#8217;s consent before sending Tweets or other messages on their behalf. A user authenticating with your application does not constitute consent to send a message.&#8221;</p>
<p>If you&#8217;ve ever played with a few Twitter apps, you know what Stone and company are  talking about here: You try out some app, give it your account name and password, and the next thing you know it has sent out a Tweet in your name that you didn&#8217;t approve.</p>
<p>It usually says something along the lines of &#8220;I&#8217;m using Fantasticapp and it&#8217;s changed my life. You should, too!&#8221;</p>
<p>Embarrassing, and/or annoying, but not the end of the world, obviously. And you might even put up with that kind of slippery behavior in another service. But Twitter is both so personal and so public that it needs to be explicit about banning this stuff.</p>
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		<title>Rhapsody Beats Spotify to the Punch. But Will You Pay $15 a Month for an iPhone Music App?</title>
		<link>http://mediamemo.allthingsd.com/20090909/rhapsody-beats-spotify-to-the-punch-but-will-you-pay-15-a-month-for-an-iphone-music-app/</link>
		<comments>http://mediamemo.allthingsd.com/20090909/rhapsody-beats-spotify-to-the-punch-but-will-you-pay-15-a-month-for-an-iphone-music-app/#comments</comments>
		<pubDate>Thu, 10 Sep 2009 03:07:38 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Apple]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10807</guid>
		<description><![CDATA[Okay, all you Spotify coveters who say you can't wait to get the much hyped app on your iPhone, here's your chance: Pony up $15 a month and you can get Rhapsody's app, which does exactly the same thing.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/09/rhapsody-app.png"><img class="alignright size-medium wp-image-10810" title="rhapsody app" src="http://mediamemo.allthingsd.com/files/2009/09/rhapsody-app-250x199.png" alt="rhapsody app" width="250" height="199" /></a>Okay, all you Spotify coveters who say you can&#8217;t wait to get the much hyped app on your iPhone, here&#8217;s your chance: Pony up $15 a month and you can get Rhapsody&#8217;s app, which does exactly the same thing.</p>
<p><a href="http://mediamemo.allthingsd.com/20090827/apple-signs-off-on-spotify-when-will-big-music-play-along/">Apple (AAPL) gave Spotify</a> the go-ahead for its streaming-music iPhone app last month. But the service doesn&#8217;t have deals to distribute music in the U.S. yet. RealNetworks&#8217;s (RNWK) Rhapsody, however, does have deals, and <a href="http://realnetworksblog.com/?p=889">its app</a> just got Apple&#8217;s nod.</p>
<p>So. If you want on-demand access to nearly any song you want, it&#8217;s all yours: You&#8217;re just going to need to pay Real $14.99 a month for its &#8220;Rhapsody-to-Go&#8221; subscription service.</p>
<p>What&#8217;s that? You like the idea of getting all the music you can eat on your iPhone, without listening to ads, but you don&#8217;t want to pay for it? Alas, no dice. Spotify mobile users in Europe are paying, too&#8211;about $16 a month&#8211;and if and when the service gets distribution in the U.S., you can expect to pay about the same.</p>
<p>So will anyone pay for either app? Good question. Best Buy&#8217;s (BBY) <a href="http://mediamemo.allthingsd.com/20090901/napster-dont-hold-your-breath-waiting-for-our-awesome-new-iphone-app/">Napster</a> says that the pricing level is too high and that it won&#8217;t offer a music app until it can get the labels to charge less for their music, adding that it thinks $5 a month is a reasonable charge.</p>
<p>And up until now, Rhapsody hasn&#8217;t had a whole lot of luck with its &#8220;to go&#8221; subscription pricing. But! Up until now, Rhapsody wouldn&#8217;t work with Apple&#8217;s iPod, which has made it a very, very hard sell. Now it has a very large base to sell against.</p>
<p>Will that make a difference? We&#8217;re about to find out.</p>
<p>Here&#8217;s a video that previews the app.</p>
<p><object classid="clsid:d27cdb6e-ae6d-11cf-96b8-444553540000" width="350" height="196" codebase="http://download.macromedia.com/pub/shockwave/cabs/flash/swflash.cab#version=6,0,40,0"><param name="allowfullscreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://vimeo.com/moogaloop.swf?clip_id=6239850&amp;server=vimeo.com&amp;show_title=1&amp;show_byline=0&amp;show_portrait=0&amp;color=&amp;fullscreen=1" /><embed type="application/x-shockwave-flash" width="350" height="196" src="http://vimeo.com/moogaloop.swf?clip_id=6239850&amp;server=vimeo.com&amp;show_title=1&amp;show_byline=0&amp;show_portrait=0&amp;color=&amp;fullscreen=1" allowscriptaccess="always" allowfullscreen="true"></embed></object></p>
<p><a href="http://vimeo.com/6239850">Rhapsody on iPhone</a> from <a href="http://vimeo.com/rhapsodyblog">Rhapsody</a> on <a href="http://vimeo.com">Vimeo</a>.</p>
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		<title>Now Showing on YouTube: Usain Bolt's Amazing 200 Meter Run</title>
		<link>http://mediamemo.allthingsd.com/20090820/now-showing-on-youtube-usain-bolts-amazing-200-meter-run/</link>
		<comments>http://mediamemo.allthingsd.com/20090820/now-showing-on-youtube-usain-bolts-amazing-200-meter-run/#comments</comments>
		<pubDate>Thu, 20 Aug 2009 20:16:50 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<category><![CDATA[sprinting record]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=10117</guid>
		<description><![CDATA[Really doesn't matter if you have the slightest interest in track and field. If you have a pulse, you will be amazed when you see Jamaican marvel Usain Bolt smashing yet another sprinting record, which he did just minutes ago  at a German track meet. It will take NBC's Universal Sports quite some time to get you the clip, but you can watch it right now on the world's biggest video site.]]></description>
			<content:encoded><![CDATA[<p>Really doesn&#8217;t matter if you have the slightest interest in track and field. If you have a pulse, you will be amazed when you see Jamaican marvel Usain Bolt smashing yet another sprinting record, which he did just minutes ago at a German track meet.</p>
<p>Check it out:</p>
<p><object width="350" height="212" data="http://www.youtube.com/v/3bfQfm6pRvE&amp;hl=en&amp;fs=1&amp;" type="application/x-shockwave-flash"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/3bfQfm6pRvE&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /></object></p>
<p>Note that this clip is likely an unofficial one, at least for U.S.-based Web users, which means that YouTube may take it down in the near future. But no matter: Just type <a href="http://www.youtube.com/results?search_type=videos&amp;search_query=usain+bolt&amp;search_sort=video_date_uploaded">&#8220;Usain Bolt&#8221; in YouTube&#8217;s search box</a>, adjust the &#8220;sort by&#8221; slider to &#8220;newest&#8221; and you&#8217;ll see clips come flooding in.</p>
<p>Presumably, at some point, <a href="http://www.universalsports.com/">Universal Sports</a>, a unit of GE&#8217;s (GE) NBC Universal, will get around to posting a sanctioned version of the clip on Google&#8217;s (GOOG) video site, but by that point anyone who wants to see the run will have done so. Still, I wouldn&#8217;t expect it soon: NBC, recall, is the same outfit that made tennis fans watch one of Wimbledon&#8217;s most exciting matches in recent history on tape delay, <a href="http://paidcontent.org/article/419-nbc-needs-to-get-a-grip-or-lose-its-grip-on-wimbledon/">for no good reason at all</a>.</p>
<p>UPDATE: I spoke too soon. You can indeed watch a sanctioned version of the clip on <a href="http://www.universalsports.com/mediaPlayer/media.dbml?id=642185&amp;db_oem_id=23000">Universal&#8217;s site</a>, though it took some refreshing to get it running. Nice quality once you get there. Still nothing on YouTube, though.</p>
<p>In any event, Universal won&#8217;t allow sites like mine to embed the clip when it does appear. Their policy is not to do so because of &#8220;geo blocking&#8221; issues&#8211;a rep told me earlier this week when I was inquiring about the status of yet another amazing clip of Bolt smashing yet another record. If you want to see the official version of that one, you&#8217;ll have to go to Universal&#8217;s site or this <a href="http://www.youtube.com/watch?v=By1JQFxfLMM">YouTube page</a>.</p>
<p>But if you don&#8217;t want to wait, you have plenty of options, like this:</p>
<p><object width="350" height="283" data="http://www.youtube.com/v/tAQ0LQ2NZAE&amp;hl=en&amp;fs=1&amp;" type="application/x-shockwave-flash"><param name="allowFullScreen" value="true" /><param name="allowscriptaccess" value="always" /><param name="src" value="http://www.youtube.com/v/tAQ0LQ2NZAE&amp;hl=en&amp;fs=1&amp;" /><param name="allowfullscreen" value="true" /></object></p>
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		<title>Kindle Nation Could Be 10 Million Strong. But What Happened to Amazon's "Save the Newspaper Business" Plan?</title>
		<link>http://mediamemo.allthingsd.com/20090813/kindle-nation-could-be-10-million-strong-but-what-happened-to-amazons-save-the-newspaper-business-plan/</link>
		<comments>http://mediamemo.allthingsd.com/20090813/kindle-nation-could-be-10-million-strong-but-what-happened-to-amazons-save-the-newspaper-business-plan/#comments</comments>
		<pubDate>Thu, 13 Aug 2009 12:04:12 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Internet]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=9868</guid>
		<description><![CDATA[Have you bought  a Kindle? Do you plan on buying a Kindle? If you answered yes to either question, you're part of a not-that-small group: JP Morgan estimates that some 10 million Americans either own one of Amazon's e-book readers or plan to get one soon. Meanwhile, whatever happened to Amazon's plan to bundle newspaper subscriptions with its DX reader?]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/04/weegee-crowd.jpg"><img class="alignright size-medium wp-image-6785" title="weegee-crowd" src="http://mediamemo.allthingsd.com/files/2009/04/weegee-crowd-230x300.jpg" alt="weegee-crowd" width="230" height="300" /></a>Have you bought  a Kindle? Do you plan on buying a Kindle? If you answered yes to either question, you&#8217;re part of a not-that-small group: JP Morgan estimates that some 10 million Americans either own one of Amazon&#8217;s e-book readers or plan to get one soon.</p>
<p>That  projection comes from a survey of Web users that Internet analyst Imran Khan commissioned last month. Khan&#8217;s survey found that 37 percent of respondents were familiar with the Kindle. And of that group, five percent said they already owned one of the devices, and another 15 percent said they expect to buy one within the next year. Extrapolating those results for the U.S. population, Khan figures that Kindle ownership will hit 10 million in the next 12 months. (Click chart to enlarge)</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/08/kindle-purchase-plans.png"><img class="alignnone size-full wp-image-9869" title="kindle-purchase-plans" src="http://mediamemo.allthingsd.com/files/2009/08/kindle-purchase-plans.png" alt="kindle-purchase-plans" width="350" height="168" /></a></p>
<p>OK. But what if Amazon (AMZN) dropped its proprietary ebook format, a supposed  weakness that competitors Sony (SNE) and Plastic Logic are trying to take advantage of by <a href="http://www.nytimes.com/2009/08/13/technology/internet/13reader.html?_r=1&amp;ref=business">agreeing to use an open, common standard</a>? Won&#8217;t matter that much, say Khan&#8217;s respondents: Only 15 percent of people who say they don&#8217;t plan to buy a Kindle cite format issues as a concern. I&#8217;m surprised the number is that high.</p>
<p><a rel="lightbox" href="http://mediamemo.allthingsd.com/files/2009/08/kindle-purchase-problems.png"><img class="alignnone size-full wp-image-9873" title="kindle-purchase-problems" src="http://mediamemo.allthingsd.com/files/2009/08/kindle-purchase-problems.png" alt="kindle-purchase-problems" width="350" height="220" /></a></p>
<p>On a related note: Whatever happened to Amazon&#8217;s plan to work with the New York Times (NYT) and the Washington Post (WPO) to bundle newspaper subscriptions with its jumbo-sized Kindle DX reader?</p>
<p>When <a href="http://mediamemo.allthingsd.com/20090506/live-amazon-unveils-kindle-30/?mod=ATD_sphere">Amazon unveiled the DX in May</a>, it briefly mentioned plans to <a href="http://mediamemo.allthingsd.com/20090506/newspapers-please-buy-a-kindle-unless-we-can-sell-you-a-paper-instead/?mod=ATD_sphere">sell the $489 machine at a discount to people who bought subscriptions to the Times, Post or Boston Globe</a>, but didn&#8217;t say much more than that. Details were supposed to be released &#8220;this summer.&#8221;</p>
<p>Now we&#8217;re midway through August and we haven&#8217;t heard a peep about the program. What gives? I asked Amazon, the Times and the Post, and none of them had anything to say&#8211;save for a comment from a Post rep who said that the subscription-plus-discount offer would be &#8220;a small experiment.&#8221;</p>
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		<title>Another Bet on Video: How-To Start-Up 5min Raises $7.5 Million</title>
		<link>http://mediamemo.allthingsd.com/20090723/another-bet-on-video-how-to-startup-5min-raises-75-million/</link>
		<comments>http://mediamemo.allthingsd.com/20090723/another-bet-on-video-how-to-startup-5min-raises-75-million/#comments</comments>
		<pubDate>Thu, 23 Jul 2009 13:43:19 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Google]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=9617</guid>
		<description><![CDATA[Web video companies that wanted to take on YouTube are having a very hard time. But Web video isn't going away, either, and there has to be some way to make it work for users, publishers and investors. Right?

Hence, another round of funding for 5min, a video start-up that just raised a $7.5 million B round. New investor Globespan Capital Partners led the round, and Spark Capital, the VC shop that has made several video bets (along with a big one in Twitter) made a second investment.]]></description>
			<content:encoded><![CDATA[<p><a href="http://mediamemo.allthingsd.com/files/2009/07/072309atdfivemin.jpg"><img class="alignright size-medium wp-image-9637" title="072309atdfivemin" src="http://mediamemo.allthingsd.com/files/2009/07/072309atdfivemin-250x187.jpg" alt="072309atdfivemin" width="250" height="187" /></a>Web video companies that wanted to take on Google&#8217;s (GOOG) YouTube  are <a href="http://mediamemo.allthingsd.com/20090706/is-veoh-the-next-video-site-to-go/">having  a very hard time</a>. But Web video isn&#8217;t going away, either, and there has to be <em>some</em> way to make it work for users, publishers and investors. Right?</p>
<p>Hence, another round of funding for <a href="http://www.5min.com/">5min</a>, a video start-up that just raised a $7.5 million B round. New investor Globespan Capital Partners led the round, and Spark Capital, the VC shop that has made several video bets (along with a big one in Twitter) made a second investment.</p>
<p>5min has now raised $12.5 million since 2007. Co-founder Ran Harnevo won&#8217;t discuss valuation, though I&#8217;m told it&#8217;s up from its A round, which is an accomplishment in and of itself.</p>
<p>&#8220;People do understand that video is the next thing. They just don&#8217;t see reasonable business models,&#8221; Harnevo says. &#8220;That&#8217;s the next thing that you have to do. You have to go into VCs and say, &#8220;I know how to do this.&#8221;</p>
<p>The company, which is based in New York City but has its roots in Israel, takes a different tack toward video than the would-be YouTubes: Rather than serving as a portal for user-generated clips or movies and TV shows, it cobbles together a library of how-to videos and distributes them to sites that don&#8217;t have any videos of their own. It now claims to reach 14 million video views across 200 sites.</p>
<p>There&#8217;s plenty of competition for <a href="http://www.businessinsider.com/2008/4/yet-another-how-to-site-iac-edition">how-to sites and videos</a>, too, of course. But Harnevo claims that he&#8217;s been able to sell all of his inventory so far, and predicts he&#8217;ll be profitable in the next 18 months.</p>
<p>He was similarly optimistic six months ago, when he let me try my hand at conducting an interview with a Flip Mino. I never ended up publishing the clip, but now seems like a good time to do so&#8211;as long as you&#8217;re willing to put up with crummy sound, shaky camerawork and a stretched image. As I said, I was trying this stuff out.</p>
<p>Just about every thing we discussed in this interview still holds up, except that 5min now boasts 100,000 videos, up from 50,000 in December.</p>
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		<title>Four and a Half Minutes on iFart? There's a "Daily Show" Clip for That.</title>
		<link>http://mediamemo.allthingsd.com/20090722/four-and-a-half-minutes-on-ifart-theres-a-daily-show-clip-for-that/</link>
		<comments>http://mediamemo.allthingsd.com/20090722/four-and-a-half-minutes-on-ifart-theres-a-daily-show-clip-for-that/#comments</comments>
		<pubDate>Wed, 22 Jul 2009 12:14:08 +0000</pubDate>
		<dc:creator>Peter Kafka</dc:creator>
				<category><![CDATA[Apple]]></category>
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		<guid isPermaLink="false">http://mediamemo.allthingsd.com/?p=9558</guid>
		<description><![CDATA[Everyone knows that one of the iPhone's best selling points is the amazing array of apps developers make for the handset. But if you still need convincing, check out this "Daily Show" clip, which highlights some of the phone's most popular programs.]]></description>
			<content:encoded><![CDATA[<p>Everyone knows that one of the iPhone&#8217;s best selling points is the amazing array of apps developers make for the handset. But if you <em>still</em> need convincing, check out this &#8220;Daily Show&#8221; clip, which highlights some of the phone&#8217;s most popular programs.</p>
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<p>Of course, it&#8217;s a decent bet that if you&#8217;re reading this site, you&#8217;ve already heard of iFart. And perhaps the <a href="http://news.cnet.com/8301-13579_3-10164264-37.html">iFart v. Pull My Finger lawsuit</a>. And maybe the <a href="http://cultofmac.com/wtf-lawsuit-of-the-year-ifart-v-pull-my-finger/8340">entire array of flatulence apps</a> now available for iPhone users.</p>
<p>Which is, actually, a serious story for Apple (AAPL): At some point it risks having the App store, and thus the iPhone, defined by novelty items.</p>
<p>The issue came up during the company&#8217;s <a href="http://mediamemo.allthingsd.com/20090721/live-apple-q3-earnings-call/">earnings call</a> yesterday, when Needham and Co. analyst Charles Wolf worried about a &#8220;race to the bottom&#8221; at the App store, and wondered if there was a way to &#8220;enable consumers to separate quality apps from the garbage.&#8221;</p>
<p>Apple COO Tim Cook&#8217;s <a href="http://seekingalpha.com/article/150291-apple-f3q09-qtr-end-6-27-09-earnings-call-transcript?page=-1">response</a>: &#8220;We realize there’s opportunity there for further improvement and are working on that.&#8221;</p>
<p>In the meantime, here are all of Apple&#8217;s fart apps in one handy <a href="http://ax.search.itunes.apple.com/WebObjects/MZSearch.woa/wa/search?entity=software&amp;media=all&amp;submit=seeAllLockups&amp;term=fart">link</a>.</p>
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