Zprocket

Sunday, May 18, 2008

Twitter, What Is It Good For

Absolutely nothing (to paraphrase the song), as some would say. Twitter is getting a lot of attention these days for being social networking service that lets you tell the world what you're up to, assuming anyone really cares, in 140 characters or less. Twitter lets you follow other users' updates, and allows others to follow yours.

Though Twitter serves this purpose well, it is the hidden potential made possible by Twitter's open platform, continuous and interweaving conversations, and creative users that has me thinking this is becoming far more than an extension to Facebook's status updates.

Beyond the simple "going to the store" and "having a cup o' joe" status updates, many are turning to Twitter as a way to get the word out about breaking news, highlight technology trends, converge around events and share music recommendations.

The introduction of @reply, which allows a quick reply to any Twitter user's post, and #hashtags, which enable posts to be categorized, have launched new dimensions to the service that both enhance the conversation flow and allow users to cut through the noise to the core of almost any topic topic.

Using Twitter's APIs, Summize.com and Hashtags.org have built services that allow us to peak into conversations, organizing the chaos and providing an integrated view of individual discussions united by common themes.

Now, for any discussion or topic, not just mine but any, I can join and leave at my discretion, chose to monitor only or participate, get involved or remain anonymous. I can pivot the conversation by user, tag/topic, keyword, timeframe.

This all facilitates Conversation Surfing, like web surfing but based on what people are actually saying (in public, on the web of course).

What I want now are linkable #hashtags and, even better, text (implicit tags) from within Twitter posts. And why not link to or pull in relevant sites, products, pictures, videos, music, concerts, etc from other sites, much like Zemanta is doing as I write this blog entry. Semantic-web-like, in real-time, based on what I am doing *and* saying. The essence of personalization.

Twitter is quickly becoming the 2008 version of the chat room, but in a more open, contextual and slice-and-diceable way.

So what is Twitter good for? I'd say it is less about the simple act of what you are doing, more about opening wide the channels of communication.

Wednesday, March 19, 2008

Subscription iTunes Coming?

A report in the Financial Times and picked up in places like CNet has Apple working on a subscription music plan similar to Universal's Total Music where consumers would pay a premium when purchasing a device for unlimited access to the iTunes catalog. If this is true, it can't come soon enough for the labels and it would breath new life into online music sales. Lots of questions to answer and details to be worked out, but we may finally be at the point where subscription music is embraced by the mass market. Hopefully Apple will recognize the incredible potential that combining subscription music with social media, Web 2.0, widgets, etc will create for their business and do this right.

Friday, February 29, 2008

Blu-ray: Content really IS king

Interesting read on Fortune.com about how Sony's Blu-ray was able to set the dominoes in motion and win the HD video format war against HD-DVD. Did anyone really think that Sony would let Betamax happen again?

"Sony chief's at the time, Akio Morita, grew enraged when asked by one of the visitors whether he was unhappy with buying Columbia, which had resulted in a 3.2-billion write-down in 1994. "You Americans don't understand." Morita shot back. "We clearly had the best product with Betamax - but Hollywood picked VHS." In an e-mail, Roberts recalled the encounter as very un-Japanese in its emotion. "And I vividly remember, with fire in his eyes what he said next: 'That will never happen to Sony again'."

The big question now - does it really matter which physical format won this battle or will digital downloads ultimately win the war?

Wednesday, February 13, 2008

Fascinating: MSFT-YHOO Negotiations

I've been fascinated by the public negotiation in which Microsoft and Yahoo! have engaged over the past week. With each side maneuvering and leaking behind the scenes discussions and possible alternatives, the story is playing out in real-time like a great suspense novel. Will Microsoft get Yahoo! ? Can Yahoo! use Google to bluff their way to a higher sale price? Will Yahoo! team up with a rival (AOL?)? Will News Corp save Yahoo!'s day? or is this just a bluff too? Will there be any Yahoo! employees left when this is all over anyway?

FWIW - I'm betting MSFT ends up with Yahoo! for $35/share. It's about the mid point between MSFT's public offer of $31/shr and the $40 price MSFT was said to be looking for last year, as well as the price the Yahoo! board is said to be looking for now if MSFT were to win this.

Lots of sites have been tracking the story but I think Silicon Alley Insider has had the most current information and best analysis out there, with frequent updates.

On a side note...I find myself turning to SAI more and more for the latest Internet/Tech/Business news. I've been a big fan of Paidcontent.org for a long time, and I still read it daily, but SAI's frequent updates, quick stories, smart analysis and easy readability are winning me over.

Here's SAI's latest take on the MSFT-YHOO situation.

Thursday, January 10, 2008

Pioneers and Arrows - Someone Has To Lead

In an interview with CNET, Trent Reznor talks about the web release of his collaboration with musician Saul Williams on the album The Inevitable Rise and Liberation of NiggyTardust.

He is clearly disappointed with the overall sales figures, having thought more consumers would choose to purchase the release instead of downloading it for free. But he shouldn't be so hard on himself. In taking this innovative approach, he is one of the more notable among a growing group willing to challenge the music distribution establishment. Ever heard the saying "You can tell the pioneers. They're the ones with the arrows in their backs"?

Radiohead, much more widely known and popular than Saul Williams, who released In Rainbows online last fall, viewed the release as an experiment rather than a complete change in philosophy. Ultimate sales success did not depend on the online distribution channel alone. Radiohead planned a limited-time online release followed by a traditional CD release. With In Rainbows topping the charts last week and direct download sales being viewed as "successful" (whatever that means since Radiohead have not released figures), Radiohead have paved the way for other artists to take similar approaches.

Given Radiohead's popularity and reach, it's no wonder the release of In Rainbows gained so much attention. Each new album release by the band is highly anticipated, with word of mouth and viral marketing doing much of the heavy promotional lifting. This undoubtedly contributed to Radiohead's online sales success. Saul Williams, on the other hand, would likely need much more traditional marketing to get the word out.

Perhaps, as Reznor suggests, an "ISP tax" (and please CNET, get the quote right. He did not say 'tax on music' as your headline suggests. That's an entirely different thing.) could help to dissuade some from using file sharing services. But this won't solve the problem. It would, however, be another option for consumers who are interested in paying for music.

True, the genie is out of the bottle with consumers looking to get their music for free, but at this point that has to be viewed as a cost of doing business. We need innovators like Trent Reznor, Saul Williams and Radiohead to take some risks, experiment, and see what works. These challenges to the status quo may be difficult for the individual artist and, viewed in isolation, some may not succeed. But for the music industry as a whole to move forward, someone has to start. Let's applaud these guys for having the guts to lead the way.

Wednesday, January 09, 2008

Technology Trends for the Experienced

I just realized that my in-laws, in their mid-to-late 70s, have quietly become the most technologically advanced people in my family.

They are long time Apple fans and swear by the Mac's ease of use. They currently own 2 Mac Books, an iMac, 2 iPods and an AirPort.

They have listened to XM radio for a couple years.

And they just picked up a Wii and a 46" 1080p Sony Bravia LCD TV with Cox HD and PVR over the holidays.

Conventional wisdom says that gadgets and the connected life are the domain of younger generations. But my in-laws are clearly in the game too.

They don't see themselves as being on the cutting edge, and are somewhat technologically challenged. But they do want modern and simple tools in their lives to stay in touch and informed.

I suspect my in-laws are not alone, and that many more people than ever in their generation are embracing modern consumer technology to enhance their lives. I would love to see some statistics on the technology uptake by the "more experienced" generation in recent years. The trend line likely points up and to the right.

Monday, November 26, 2007

Proof That Google is Evil

Apparently not true any more: #6 on Google's Ten Things list. Look where the stock closed today...

Tuesday, November 20, 2007

Haier Ibiza Rhapsody

Haier America, a Chinese company trying to break into the US market in several consumer goods categories, just released the Haier Ibiza Rhapsody.

The device includes WiFi, integration with Real's Rhapsody music service for online streaming and downloads, streaming AOL video, Bluetooth for remote speakers, FM radio with RDS data and a 30GB hard drive (not flash).

Though packed with features, Haier and this device face immense challenges entering the US PMP market. With Apple firmly in the lead, Microsoft willing to spend what it takes to catch up, and companies like Creative, iRiver and SanDisk just scraping by, it's going to be a tough fight for Haier.

Haier also has not done itself any favors in the US market with difficult to pronounce and spell brand and product names. So it was a shrewd move for Haier to align itself with one of the top US music services, and to incorporate the service's well known and respected brand - Rhapsody- into the product name.

For Rhapsody, the Ibiza Rhapsody adds another element to its growing music service platform. I really like the steps Rhapsody has taken to enable subscribers to stream and download music from platforms like Tivo, Sandisk and now the Haier Ibiza Rhapsody. As a Dish subscriber, I would love to see Rhapsody available on my networked VIP622 receiver as well, and I'm sure Rhapsody/DirecTV subscribers feel the same way.

Of course, this is all just scratching the surface. What will really make a connected handheld device with an integrated music service like the Ibiza Rhapsody take off is ubiquitous high speed wireless, aka WiMax. Equiped with a WiMax-enabled device and unbounded by home networks and hot spots, consumers will be free to access any music any time any where. Say goodbye to terrestrial radio (and satellite radio as well)!

When I worked at AOL, I had some exposure to the development of a previous version of the Haier device. We had some exciting plans to take full advantage of the power of our subscription music service - millions of tracks accessible from anywhere, with social music discovery, real-time play tracking and sharing (i.e., a pulse or news feed of members' just played tracks) and published member playlists.

I'm looking forward to checking out the Haier Ibiza Rhapsody in person. This looks like a promising first step, and I hope that as technologies like WiMax make their way into our lives (fingers x'd), Haier and Rhapsody can jointly evolve the device and service to turn some of the exciting possibilities into reality.

The DRM-Free Music Ground Swell

First the "File Sharers", then Steve Jobs, Universal, EMI, Rhapsody, Amazon and even Wal Mart, and of course Radiohead. Now, PaidContent has a story about UK retailers demanding the labels drop DRM by Christmas.

Let's stop the madness. A la carte music stores have become a confusing mess of DRM and DRM-free tracks, and I suspect that most consumers do not understand the options, differences and consequences of their digital music purchases.

2007 has become the year of the DRM-free music ground swell. However, all this attention has yet to translate into clear DRM-free purchase options for the majority of music at major online retail stores.

Enough of this half-in, half-out tip toeing already. Consumers, retailers, device manufacturers and (most) labels have expressed the desire for, and even taken steps toward, restriction-free music. Now it's time for the labels to fish or cut bait.

Let's hope that 2008 is the year they finally decide to fish.

Wednesday, November 07, 2007

Just Me Alone With My Thoughts

I've been doing a lot of running lately. Trying to stay in shape and generally live healthier. It also gives me a great chance to catch up some of the new music that I don't have a chance to hear at other times of the day. As I've mentioned, this to me is one of the great benefits of subscription music. I can load up whatever new music I want and off I go. I don't have to think about how much it costs or make decisions about which tracks I'm on the fence about - I just download and sync what I want.

I grabbed my Zen Micro at 6:15 this morning, turned it on, and....the dreaded "No license to play" error. Grrrrr. This is one of the great bugaboos of the MSFT Plays for Sure ecosystem that drives me crazy and never fails to raise its ugly head at the most inopportune times.

"No license to play" means the license to play the track on your device has expired and the track won't play until the license is renewed. Normally, a quick hookup and sync with the PC updates the license on the device and you are good to go. Except for me, today, after fiddling with things for 20 minutes, I could not get the error to go away. This has happened to me before, and I hate it. I'm usually running late or pressed for time and want to take my music with me. The ecosystem should just work. And I know...other ecosystems do.

So today I had to give up the Zen and run without music. The only sounds where my shoes on the pavement, my breathing, and my thoughts rattling around in my head. I'm not used to this, and it felt a little odd.

When I arrived home, my wife didn't miss a beat (no pun), offering to loan me her iPod next time I go out. And as she said, she's never had a problem syncing it. She's right. The Apple ecosystem just works.

Perhaps Microsoft knows this too.

Tuesday, September 25, 2007

AppleTV

PaidContent.org has story today about a Forbes story about how AppleTV hasn't done so well. I'm not surprised at AppleTV's lack of success. Here's the comment I left (under my alter-alter ego, EdJones):

I was surprised when Apple announced they would be entering the Digital Media Adapter (DMA) market, but I’m not surprised to see that they are now struggling. DMAs have been around for years. When broadband, home networking and wi-fi were taking off in 2002/3, D-Link, Linksys, HP and others rushed to market with standalone devices that allowed consumers to stream their music, photos and videos from their PCs to their TVs and stereos. Market research firms breathlessly predicted sales into the 10s of millions of units anually by the end of the decade. While these devices provide a cool way to move media from the PC to the optimal environment for viewing and listening, complexity of setup and poor user interface made them difficult to use. But perhaps the biggest problem is the requirement for the consumer to purchase a completely new box to make this work. In it’s current form, the DMA, including AppleTV, is a niche product that appeals mostly to media and technology buffs. The story may have been quite different had Apple chosen to make AppleTV more closely resemble a DVR as Forbes suggests, or better, forget the hardware and integrate it’s software into an existing set top box.

Friday, August 31, 2007

Apple - Well, It's Finally Imminent

Update: Looks like Apple came through with a ton of cool stuff, including some mentioned in my post below. Though, I do wonder why they decided to shave 1/3 off the price of an iPhone not three months after launch. Or, more correctly, why set the price $200 higher at $599 to begin with? I realize they discontinued the 4-gb model and they need to be at an attractive price that meshes with the iPod Touch. But doesn't that kind of screw the (previously) happy, loyal customers who shelled out top dollar to not only own the iPhone first but also spread the good word about it?
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Once again, Apple has cornered the market on rumor and speculation in August/September. They have scheduled a press event for September 5, with the slightly cliché and definitely cocky tag line "the beat goes on". As the song goes, Apple is fit, but they know it.

Apple is certain to introduce some key iPhone technology components into the iPod - perhaps turning the iPod into a phone-less iPhone? WiFi, a large touch screen display with software click wheel, and the OS X operating system are all likely possibilities. Assuming these capabilities, I would not be surprised if Apple also introduced direct-to-device over the air downloads. Perhaps via a lite iTunes client running on the handheld device.

If true, these changes would be a logical and positive incremental for Apple that would tie together it's growing cadre of digital entertainment devices into a single, consistent and scalable ecosystem. Applications, services and content that work on the iMac, for example, could also run seamlessly on the iPhone, iPod or even Apple TV.

All of this would streamline and, ironically simplify (as if it's not already simplified) Apple's platform strategy - essentially creating an ecosystem where Apple can deliver its suite of content and applications across PC/laptop (iMac, MacBook), mobile/handheld (iPhone, iPod) and living room (Apple TV) environments in a write once, run many kind of way.

Apple is so far ahead in mind- and market-share they seem to be able to do no wrong. They have good reason to be confident, but I'd rather enjoy these great products and advancements without the conceit. But cockiness, conceit or not, September 5th should be fun.

Sunday, August 26, 2007

Everything Old is New Again

I recently brought out of exile a couple gadgets that I had sent to the island of unused and broken toys and nearly forgotten about. Along the way, I realized that there is a useful time and place for everything, it just may not be when you expect.

Back in the '90s, a friend showed me this cool indoor/outdoor speaker. It was made by a company called Recoton, had a wireless transmitter that connected to his stereo, and beamed music out to his deck where the white dome-like speaker was located. I was impressed by the quality of sound this single speaker produced and intrigued by the possibilities of listening to my CD collection anywhere inside or outside my house. So I bought one too.

The only problem - my wife hated the way it looked and dubbed it "the mushroom". We used it a few times but it never really caught on, so into the closet it went. For 10 years.

Fast forward. Our family has grown and we have outdoor gatherings frequently in the summer. I have needed music on several occasions for birthday parties or just background music. The mushroom has always been in the back of my mind so I decided the time was finally right to put it to good use. It still works great after so many years in exile, the only difference now is that instead of hooking it up to my CD player, which I no longer need nor own, I use my portable media player. It's the ultimate in ultraportable music.

My other recent rediscovery is my Creative Zen Micro. I got this when it was first introduced (2004, I believe) and used it quite a bit. After a while, though, the sound began to cut out due to a loose audio connection and it became unusable. So into the closet it went. And I moved on to other devices.

I recently began running and have been looking for a good quality, small device that would work with my subscription music service to give me a nice variety of tunes while I am out. After trying a few devices, I realized I had the perfect thing under my nose all along. The only question was how to fix the audio problem.

Surprisingly, I found that the loose audio jack has plagued this device and many people have complained about it online. Though Creative has not addressed it, several individuals have. So I contacted a guy called "Zen Master", sent him my device, some money, and of course my trust, and a week later I received a fully restored Zen Micro.

I'm now using this great device more than ever.

The right gadgets in an unexpected place and time. Everything old is new again.

Friday, August 17, 2007

First Words - Brand Marketing Genius

My youngest son Kevin is a year and a half and just learning to talk. He can say "hi!", "bye bye!", "car", and a few other words. He can also say "iPod".

Being a fan of subscription music and having worked on a Windows Media-based music service, I have been living an iPod-free existence for quite some time. I think the iPod is an amazing device, it just doesn't work with the music services I use. So I never bought one. But, my wife recently had a birthday and wanted only one thing. So she got it.

My three other kids went bonkers over it, and Kevin learned a new word.

It's funny. None of the other kids ever learned to say "Zen Micro" or "Vision:M" or "iFP-300" ....

Thursday, August 16, 2007

Thoughts on Hypothetical: Pay for One and Take Another

Jason raises an interesting question about the propriety of a consumer downloading a free MP3 when s/he already pays for subscription music in perpetuity. Was this perhaps spurred by a "Kooky" Facebook exchange? But I digress…..

My answer: I don’t think this is fair right now given the current state of the music industry. Here’s why:

For decades, part of the recording industry's business model was built around packaging and repackaging artists' work to generate recurring revenue streams (The Smiths - "Paint a Vulgar Picture".) Every artist, song, album can potentially be sold in unlimited ways - single, album, Live album, "Best Of" album, 20th Anniversary album. Add the various formats created and pushed over the years - vinyl, 8-track, cassette, CD, and you have a very lucrative money making machine, with consumers essentially buying the same music over and over again. Until now, the labels and their distribution companies have controlled the value chain end-to-end -- manufacturing, marketing, branding, licensing, distribution and ultimately revenue.

Individual artists, meanwhile, get a small slice of the recorded music pie, and make the bulk of their money on merchandise sales and touring.

Digital music and the Internet are now changing the game, which gives artists more control of the value chain than ever before. They can create their own brand, generate their own buzz and even distribute their own music. But, to be financially successful takes work and the ability to scale. For most artists, climbing on to the record label machine is still the best way to make an income.

At the same time, these new technologies have made it easier for consumers to find and enjoy music. While the recording industry has always viewed change in technology as a new opportunity to generate revenue, the irony is that the shift to digital is having the opposite effect. Many consumers appear to be fighting the system by looking to acquire music for free. So the availability and accessibility of music for the masses is increasing while music sales and revenues have begun to decrease.

Subscription music services are one way labels are attempting to gain some stability and predictability in revenue streams for themselves and artists. To many consumers, including me, subscription music services also provide a great value. For the going rate of $14.95/month I can stream, download, and transfer to a compatible portable device any music I want, whenever and wherever I want, within the boundaries set by the service. I know when I sign up that there will be some limitations on what I can do with the music (e.g., I cannot burn the track to a CD), but that’s ok because I understand I am paying for a service, not ownership of every song in the catalog. The artist, through the music service, has granted me a license to enjoy their music under a certain set of conditions for an agreed upon price.

If I want more control over what I can do with the digital track, I can purchase a song or an album from my subscription service or another. In this case, the artist is transferring ownership of an asset to me with a different set of rights (e.g., I can now burn the track to a CD) for another agreed upon price, typically $.99/track.

I don’t think this system is perfect by any means. In fact, it can be downright confusing to most consumers, and many people take issue with the restrictions that are currently in place.

But, if I subscribe to a music service, then download a track from outside the service without paying, who am I really hurting? I am hurting the individual artist who stood to gain from the sale of that track and the additional rights that go with it, and for whom the loss of pennies on the dollar in revenue hurts more than it does the record label. Again, this is what I think right now, based on the current model.

The bottom line is: the current system has to change. The constraints and complexities of pricing and usage rights are far too complex in the digital world for consumers to truly understand and fully embrace. Artists want to be compensated fairly for their work and consumers want reasonable prices, freedom and flexibility.

As for the labels, perhaps they should stop trying to repackage a tattered business model and start embracing some new ideas.