Has the long-expected shakeup in the online video industry finally arrived? Video-sharing startup Veoh has blocked visitors from all but 33 countries from accessing its site, a spokesperson confirmed to NewTeeVee today, citing the desire to “re-focus those resources.” She said, “Competition is high in the video space and we want to make sure we’re differentiating ourselves in terms of products and ad platforms to monetize. As a startup we just have to make choices.” To continue reading this story, click over to NewTeeVee.

Just as any online content producer or web site owner is hungry for metrics about their web site, iPhone application developers are bound to want the same types of facts and figures surrounding the usage of their programs. New York City-based startup Pinch Media, which has received an undisclosed amount of funding from Union Square Ventures, First Round Capital and a handful of angel investors, offers iPhone SDK developers free code that gives them analytics based on unique users, active users and length of time the application is in use.
Not only has Apple has sold roughly 5.4 million iPhones to date, but it’s working hard to get the device into as many people’s hands as possible, launching it in country after country around the globe. At this point, it’s hard to gauge how large this market could become.
And with the iPhone SDK coming out in June at Apple’s Worldwide Developer Conference, we’re about to see an explosion of apps being offered by mobile developers. Indeed, as the iPhone ecosystem continues to evolve, startups that offer tools such as Pinch Analytics are going to be really valuable.

O’Reilly Media is looking for founders from early-stage startups to attend its OATV Startup Camp, a two-day event that will cover topics such as fundraising, PR and viral marketing, as well as working with investors and a board of directors. It will be held in Sebastopol, Calif. from July 11-13, just prior to the annual hacker gathering, Foo Camp. For more info., including how to apply, go here.

Mike Volpi, CEO of Joost, spent his first weekend in California in many months dealing with the blowback from a story in The Sunday Times (of UK) that has the company scaling back its global ambitions in favor of a US-only focus. We talked earlier this evening, and Volpi said none of those things are actually true. (PaidContent had talked to Joost spokesperson earlier today.)
“We are focusing on US, Western Europe, China and a few other Asian markets,” he told me. “Taking a more measured approach to our expansion, and keeping it in sync with markets where online advertising is mature enough.” Volpi pointed out that Joost launched in China two weeks ago, and has recently signed content partnerships in Scandinavia. When you add to the mix UK, France and a couple of other Western European countries, Volpi said it is pretty obvious that the company is not scaling back from its global ambitions.
“What we are not doing is chasing every market, because as a start-up we need to be focused,” Volpi added. Due to its heritage - it was started by Skype co-founders Niklas Zennstrom and Janus Friis - Joost had received a lot of press coverage. God knows, I wrote about them a few times. The fact that it is run by Volpi, a highly regarded former Cisco executive and funded by the likes of uber VC funds Sequoia Capital and Index Ventures, it is hardly a surprise that Joost is being closely scrutinized. The company raised about $45 million in May 2007.
Joost was supposed to be the delivery vehicle for Hollywood content in the US. Instead, Hulu, a web-based video company backed by major networks chose its thunder and market, leaving Joost scrambling to play catch up. It has Viacom and CBS as its primary US partners, and it clearly needs to sign-up more A-list type content providers. Furthermore, the BBC’s iPlayer (where the former Joost CTO currently works), Kangaroo and other players are beginning to challenge Joost on its turf in Europe as well.
That said, the company doesn’t have much room for error. It needs to quickly improve its client and platform. Joost client has been subject of much criticism. Volpi knows that. He said that Joost is going to announce a new web-based platform in a few months. (We offered them 5 ways they can get out of trouble. Anil Gupte had listed 7 reasons they could be in trouble.)
When I asked Volpi about layoffs, he said that company realigned its work force. A few people were let go recently, as I first reported for NewTeeVee. Many contractors were cut as well.
As a result Joost of today is a trimmer version of its former self, thanks to pruning by Volpi, who became Joost CEO in May 2007. Some of these details were outlined in a Portfolio article. I tried to pin down Volpi on the total number of employees the company currently has, but he would not comment.
Rafat in his report says that Joost has about 100 employees. By that yardstick and my own not-quite-confirmed-data, that’s a head count reduction of around 35 to 40. Volpi said that the company is adding more “engineering” folks in their New York office and contrary to published reports has no plans to shut down the Netherlands operation.
Photo by Joey Wan.

OK, so it’s no secret that a desire for free services on the part of consumers coupled with the desire of service providers to make a buck has spawned ever more intrusive ad models (Hello, Beacon!) But while hyper-targeted ads and behavioral advertising raise eyebrows, so far they’ve largely failed to raise consumers’ ire. Target that data from deep within an ISP, however, and people start to get worried.
It’s already led to problems in the UK. Privacy rights organizations have recently started to express concerns over the use of a service by ISPs such as BT and Virgin Media from a startup called Phorm. The company places its servers inside a telco’s network to check out the data moving through the ISP’s pipes. Phorm assures users that their data remains anonymous, and that they can choose to opt out of the program, but so far, people aren’t impressed.
Phorm is also hoping to expand into the U.S. It already has competition, from NebuAd, which is putting its deep-packet-inspection equipment inside ISPs to serve targeted ads. The company got some unwanted attention last June after Redmoon, a Texas ISP, started using the service to deliver ads on top of existing sites. If your ISP started monitoring your data so it could serve up targeted ads, would you stay with them, or would you switch? Going mobile may not help. Remember that just last week, Qualcomm agreed to pay some $32 million mobile ad insertion company Xiam.

Almost a year after Facebook opened up its social network to developers, MySpace is launching its own developer platform in public beta with an application Gallery Page available to users. It’s based on Google’s OpenSocial platform, which MySpace helped develop. MySpace announced the platform in late January and said it would be ready in early March. It may be a tiny bit late, but that may be because each application is being approved by hand.
Joe Heitzeberg, founder and CEO of voice widget service SnapVine, has a Photo Shout app already on the site. He said developing on the platform was sometimes a challenge since the code kept changing, but pointed out that the MySpace team was responsive to questions via email and instant messaging. For more on how the developer platform works, check out our chat with MySpace CTO Aber Whitcomb.

The web-to-mobile calling efforts are starting to get interesting. Last week Jaxtr talked about how it planned to make money by selling ads, and today Jangl launches its own ad efforts tied to a partnership with Pudding Media. The plan is to target pre-roll ads on Jangl’s existing voice calls and SMS messages by using location and demographic information provided in the profiles on various social media sites.
Jangl has already made money by selling the ability to receive calls without giving out a phone number on dating web sites, but the ad efforts are targeting bigger money. Jangl’s CEO Michael Cerda estimates the CPMs are around $30 to $60 for SMS messages ads, and around $10 for voice. Now that revenue is entering the equation, we should soon have less subjective ways to judge who is successful in this crowded market. Sales are a better metric than user numbers when it comes to figuring out which services will succeed.

Jay Gould, a former owner of pioneering social network and video-sharing site Bolt.com, has launched Gamers Media, an ad network for casual game sites. It is one of several other startups, such as NeoEdge and Mochi Media, which launched last year, seeking to monetize the hugely popular casual games market.
After the bankruptcy of Bolt.com last year, Gould said he was looking for his next opportunity. He’d noted an advertiser rush to gaming sites while at Bolt, and decided that should be his next endeavor. New York-based Gamers Media reaches 20 million uniques and has about 40 properties on which it can place ads, and it has signed a partnership with Adify to build out its publisher network. So far, Gamers Media is profitable, but Gould said he doesn’t disclose revenue.
He did say the CPMs on his site range from $10 to $20 for brand advertising, with tactics such as page takeovers and custom-built “advergames” netting a higher CPM. The site shares an average of 50 percent of its revenue with publishers that range from Big Fish Games to Lycos’ Gamesville property. I love that the company is making money, and is profitable, but the value of Gamers Media is only as good as its publishers. It needs to corner the market fast — or score some exclusive arrangements with big publishers — in order to compete.

Mixx, a McLean, VA-based social news start-up that competes with the likes of Digg and Reddit will roll out a new feature that allows news-submitters to add more context to their submissions. I have started using Mixx recently and have been impressed by the content being posted to their site.
Anyway this new feature of which I got a sneak peak, is actually a smart move by the company. It allows MIXX users to add links to additional stories, press releases, photos and video clips and give more context/depth to the original news stories. It will be rolled out later this week.
In many ways these contextual links make the story suggestions more valuable, as it can help form clusters of search-engine friendly topics that have relevance long after a story has lost its news value. Screenshots below the fold.


The first day of Le Web 3 was a bit of a blur. The jet lag compounded by complete lack of sleep and numerous cups of petit coffees have jumbled up all the conversations I had over the course of the day. One fact that stood out at the end of the work day: video is as hot in Europe as it is in the U.S.
I got a chance to hang out with vPod.tv co-founder Rodrigo Sepúlveda Schulz, who said that their foray into platform services has started to pay off and the company is close to announcing at least one major deal that will give them nice momentum going into 2008. vPod.tv faces competition from Brightcove, which recently shifted strategy and moved away from the consumer and is instead focusing on large media companies and their online video efforts.
While vPod.tv falls into the more established startups category, there were several other video startups pitching their stories. Quite a few of them were focusing on lifecasting video via mobile phones, à la Kyte. Floobs, a Helsinki-based startup, for instance is going to announce its beta in about two weeks. These videos can then be embedded in social networking profiles and other web pages. The plan is to offer a premium service along with the usual ad-supported service.
Lifecasting is getting to be a crowded business — Liz wrote about Qix earlier this week — and I have heard of another couple of companies that are trying to go after the market established by Kyte.tv. I had talked about this trend in my Business 2.0 column, Reach out and Twitter Someone.
It is becoming increasingly clear that the web is transforming itself from a medium of passive consumption to active interactions, and we are going to see many companies trying to make a business out of this.
Another company I met at the conference that is worth noting is Israel-based PLYMedia, which overlays web video with additional meta data. For instance, folks at Hulu could add data about various actors in “30 Rock” that’s visible when you mouse over or click on a part of the video. Of course, the most obvious use of this would be providing referral links. Talk about video commerce.
Looking beyond that, if you believe (and I do) that all video is going to eventually be delivered over IP networks, PLY Media can extend its technology to IPTV-based systems. PLY Media has a couple of competitors, including Jacked, which I am going to write about when I get back to San Francisco.
Signing off for today, but stay tuned: Tomorrow I have an interview with France’s greatest entrepreneur, Free.fr founder Xavier Niel. For nearly 2.5 hours we talked broadband, what the next-generation Internet service provider looks like, and when we were done, he gave me the tour of his entire operation. And I must say, I was blown away!
Play around with Songza, a music search engine and Internet jukebox, and the first question that pops up into your head will be: How can this be legal? Whether the latest offering from Humanized, a Chicago-based company, is skirting the legal limits or not, or if it will even be around for long, one thing is for sure — it is damn good. (It is the same peer group as Hype Machine, a start up that we have previously covered .)
Scratch that! Not just good, but awesome — and dead simple. I threw some rather obscure artists at the search engine — Rishi Rich, Veronica, Dub Factory, Nitin Sawhney, and Shri. These artists are not exactly chartbusters, and only real tablatronics are aware of them, yet the quality of the results, and speed with which they were served back, was very impressive. The tracks included some songs I wasn’t even aware existed.
A simple right click is all it takes to play back the songs, share them with others, or build a playlist. The tracks in the playlist are easy to manipulate, and you can move them up and down. If you close the browser and come back after a day or so, the cookie remembers your playlist and plays back the tracks. The quality of music isn’t the greatest, but still not bad for spur of the moment listening. (Update: One of our readers has figured out that much of the tunes are coming from YouTube minus the videos.)
Songza can become a good accompaniment when you don’t have your entire music library handy, but have a distinct craving for Pink Floyd’s “The Dark Side Of The Moon.” (Forty-something readers of mine will know exactly when that craving strikes!) Now I just hope they can stick around for a while, because I couldn’t really figure out how they intend to make money.
Related Post from WebWorkerDaily: Humanized’ Enso, Quick Silver for Windows
Newsvine, a Seattle-based social news start-up has been acquired by MSNBC, a joint venture of Microsoft (MSFT) and GE (GE), for an undisclosed amount of cash. The deal closed on Friday and was supposed to be announced on Monday.
We officially became part of the msnbc.com family on Friday, October 5th but we’ve been talking since May.
Newsvine is going to be run as an independent company. Mike Davidson, one of the co-founders of the company says that the company could have gone out and raised a new round of financing and grown the operation, but instead decided that working with MSNBC was a better course of action.
Newsvine came out of stealth in November 2005. (Read, Introducing Newsvine.) I think we will expect more large media players will start buying these Web 2.0-Media start-ups as a way to bolster their web operations. News Corp. (NWS) was the first company to expand into social news when it acquired Newroo.
Related Posts:
Mercora, one of the earliest start-ups in the social music business is rebranding itself as Social.FM. The new branding - definitely an improvement over the old name - also comes with a new Mac client. Update: The company wrote to us and let us know that now you can listen to music via a browser on a Mac, which is welcome but kinda lame compared to the original news. [I have not been able to check out the new client, because the company website seems to be on the blink this morning.]
The Sunnyvale, Calif.-based company after making an early splash lost some of its cachet to newer, hipper players such as Last.fm and Pandora Networks.
Social.FM has all the features of Mercora, and has about 3.5 million user shared tracks that can be streamed (and played back) over the Internet. You can share music libraries with those in your network. These songs can be listened through a web client (build with Adobe RIA) and soon the company is going to introduce a mobile version of its service.
Earlier this year, I got a demo of the mobile version of Mercora (aka Social.FM Mobile) running on a EVDO Windows Mobile phone, and it was pretty impressive. The user interface and ease of use with you could tap into music libraries was pretty awesome. I hope they introduce an iPhone-ready version as well.
So far, online music is a business fraught with risks and devoid of profits. If Social.FM can get mobile carriers to sign-on for its service offering and convince them that it is a way to up sell wireless data services, the company can reverse the profitless trend. And at the same time it needs to get mindshare back - a tall order.
Will Social.FM be able to regain its early luster? Who knows, but then back in June 2007 I had given up on The New York Yankees chances to make it to the playoffs. Miracles sometimes do happen.
Time and again, file-sharing services with a dubious past try to overcome their history by going legit, and they fail. Limewire is the latest one to try its hand, betting that it can build a business by going legit and selling music. Fat chance!
Making money selling tunes on the Net is a hard business. Even Apple (AAPL), which owns the biggest music download store, makes most of its money selling iPods. Of the $653 million generated by music sales, nearly 70% goes to the record labels. What makes Limewire so sure it can be a winner?
Others have attempted that and failed. Napster, Grokster (bought by Mashboxx, but no service yet) Morpheus, iMesh… all are operations that built up a sizable user base, thanks to free music, and in the process built a brand. The problem is that these brands are associated with free music. Even companies like BitTorrent and Azureus, both of whom have gobs of venture funding, are navigating choppy waters.
Updated: First it was News Corp., then CondeNast and CBS Interactive. Now Hearst Corp. and Forbes have joined the Web 2.0 party, snapping up tiny start-ups, and trying to capture the ongoing online shift of both audiences and advertising dollars.
Earlier today, Venturebeat reported that Forbes was buying Clipmarks, a social bookmarking and clipping service based in New York. Now The Wall Street Journal is reporting that Hearst has snapped up Kaboodle, another bookmarking service that allows online shoppers to clip and save information, for an undisclosed amount.
According to our sources went for somewhere around $40 million. Manish Chandra, founder and CEO of the 18-month old start-up based in Santa Clara, Calif., declined to comment on specific terms of the deal.
When I asked him why he decided to sell the company, he candidly replied, that “the stakes are getting higher, and others [competitors] are raising a ton of money.” What do that say, any exit is a good exit.
The company had about 2.2 million unique visitors in June 2007, having grown 20 fold since its launch. It had raised about $5 million in venture capital, and was in the process of raising another round when the exit opportunity emerged.
Chandra said that since a large percentage of Kaboodle users are women, and the site has an e-commerce/shopping component, it fit nicely with the larger goals of Hearst. He also added that the deal doesn’t impact its deals with Conde Nast properties.
There is an interesting pattern in some of the buys by big media corporations. They are not just buying pure-content, but instead seem to be interested in content-enhancing tools that rely on communities than individual content creators. Newroo, Photobucket, Reddit, Last.fm, Clipmarks and now Kaboodle fit that profile.
This is a strategy not without risk. Big media companies have to leave the acquired-and-their communities alone. Back in June 2007, Liz wrote about this trend of big media companies leaving the “kids” alone.
Acquirers, despite their enormous and asymmetrical audience, money, and power compared to their purchases, seem like awkward first-time parents afraid of hurting a baby. They are more than conscious of their status as old farts swooping in and quickly turning cool to lame.
From a Silicon Valley perspective, emergence of buyers outside of the G-Y-M (Google, Yahoo, Microsoft) triumvirate is a good thing. Sure it rules out billion dollar exits, but it ensures that there are more buyers with cash.
All this attention on Facebook must be getting under MySpace’s skin.
Despite posting good growth, the company is being treated as a carton of milk left in the open overnight. While Facebook is a rocket whose upward trajectory cannot be denied, to paraphrase Mark Twain, the rumors of MySpace’s death are highly exaggerated. To counter the perceptions, MySpace is going to launch a PR offensive tomorrow, touting its recent growth. (Read our previous post for the comparisons between two behemoths.)
The MySpace press release quotes a study by Forrester that shows that “nearly 80% of 12-17 year olds use MySpace at least weekly which is three times more than any other social network.” There are a lot of stats in the release, and while MySpace doesn’t use Facebook anywhere in the release, it is clear that they are the “closet competitor in the social networking category.” One interesting bit in the release: seriously strong international growth. MySpace UK, for example has over 10 million active users.
So why all the PR action? Two reasons: MySpace like any other social network cannot be perceived as being uncool. Like night clubs, an unhip social networks might as well shut down. Second reason, I believe is mostly to remind the developers that MySpace is still a good platform to write widgets for. As I said at the end of my previous post, this is a great derby to watch, and occasionally pontificate about.
PS: I promise, for rest of the week we are going to skip writing about Facebook and MySpace. Unless, someone decides to pay a gazillion dollars for Facebook.
The wannabe YouTube killer that fancies itself as a billion dollar company, thanks to reputation of its backers NBC and News Corp., a press conference, and lot of talk, has a new CEO. So what, if it doesn’t have a name… Still!
Jason Kilar, a former Amazon executive involved with booksellers’ video and DVD efforts is the guy who is replacing George Kliavkoff of NBCU who has been filling till today. He left Amazon last year, but he is an industry guy - he started off working with Walt Disney, so he probably knows how to play Hollywood’s favorite sports: too much talk and lunch.
Update: I had promised myself that I would take one day off - today that is - trying to de-tox my mind, unwind, and simply refresh the brain. Well its not going to happen - since the beat never stops… here we go…
8020 Publishing, a shining example of my iCompany concept, and publishers of JPG magazine, is going through an upheaval. Derek Powazek has his side of the story after being ousted from the company he started. Damn!
FeedCrier, a little service we have been fans of here at GigaOM has been acquired by IMified, another useful web-based IM service that is a favorite of the Web Worker Daily crew. IMified people have big plans for Feed Crier, including going mobile.
Talking about IM’s, Meebo launched their rooms. I got a demo and it is pretty cool, and finally a monetization strategy. Liz got the skinny as well and did the story before I could, which means more sleep for me.
AOL announced today that it has acquired Third Screen Media, the leading mobile advertising network. This is coming close on the heels of Microsoft buying ScreenTonic. Katie hinted at this coming deal in here Q&A with Third Screen Media CEO last week who said, “AOL is a customer and at times a partner of ours. This is a rumor.” Who’s next? AdMob?
I am going to try and stay offline as much as I can, but before I go, here are three good ones from around our network:
Till later folks!
Some Intel-Mac users are having Joost problems which is showing some strange error messages, reports NewTeeVee. After loading the software, many folks, including me, have not been able to log into the service. Joost CEO Fredrik de Wahl in NTV comments writes, “Yes, we’re a bit red-faced today.” The problems are associated with too many people signing up for the service.
“We’ve been flooded with demand, which is fabulous and ultimately will make the system stronger, but since it’s unaccustomed to this level of usage it’s stumbling a bit, whereas we’d like it to be sprinting. We regret that you’re not getting you should right now, but we’re getting an incredible look at the system at work (… and more importantly what’s not working) so that we can reduce the likelihood of this happening again.”
How many virtual mobile operators does the world need? Ask Juha Christensen, former head of Microsoft’s mobile division and a founder of Symbian, and his answer would be: as many as you can think of.
Christensen has a new start-up, Sonopia, that has put together a back-end platform that allows anyone to become a mobile operator. “Think of it as MVNO as web service,” says Christensen.
With $9 million in venture funding from ComVentures and Sevin Rosen Funds, Menlo Park, Calif.-based Sonopia is going after what Christensen describes as affinity groups - little league teams, universities, non-profit groups, and even niche brands.
During our chat with Christensen, we learnt that the entire platform was built by an engineering team based in Kiev, Ukraine. “About 75% of our total employees.” Christensen expects that Sonopia will power 10,000 or so “mobile operators” by 2009. Well, given that the traditional MVNO model has run into serious headwinds, one has to give Christensen points for trying something new. (My inner cynic thinks of this as MVNO-meets-Web 2.0)
Sonopia is not doing anything unique - the only uniqueness is that it is applying what others have done before to the wireless market. Credit card companies, for example, create bespoke cards for sports teams or luxury stores. Some of the groups that have already teamed up with Sonopia include the National Wildlife Federation, the Long Island Ducks (minor leage baseball), the Chicago Bandits (softball) and the American Medical Student Association.
Sonopia provides a platform which allows the various groups to select from a wide variety of phones, then allows them to customize the content and user interface. Social media tools such as blogging and photo sharing are going to be part of the platforms. The affinity groups can go to a website and follow the instructions and quickly set up a MVNO. A non-profit, for instance, can upload its list of supporters and try and convince them to switch to their “own” mobile service.
The support and services organization is shared amongst the different groups. The subscriber revenues are shared between the carrier, Sonopia and the affinity groups. If this twist on MVNO works, then the big winner will be Verizon Wireless, which is providing wholesale minutes to Sonopia.
Start-up founders by nature are risk takers, willing to face insurmountable odds in their attempt to disrupt the old guard.
But no company faces more adversity than Slacker Inc., an Austin, Texas-based personal music start-up that launched late Wednesday. It is hard to shake your head at the odds against this company. Good luck to them, because they’ll need it.
The company’s three co-founders have a digital music pedigree that is unrivaled - Dennis Mudd, who started Musicmatch, a music service that was acquired by Yahoo, Jim Cady (from Rio) and Jonathan Sasse (President of iRiver America).
The company describes its service as “personal radio” which allows customers to listen to music anywhere, as long as there is a browser. The company will sell portable players that are Wi-Fi enabled and have satellite radio connectivity built into the devices in the second quarter of 2007. The devices will cost $150-to-$300 depending on the storage capacity.
The service is free if you are willing to put up with advertisements and a pause after six tracks. Otherwise you might have to cough up $7.50 a month for the premium offering. Slacker has received a lot of coverage from various outlets ahead of its official launch, a move that is reminiscent of Sasse’s marketing attempts to position iRiver in the U.S. market.
To recap: Slacker is competing with satellite radio companies, personalized music subscription services such as Napster, Urge, Real Networks and if that wasn’t enough device makers such as Creative, SanDisk and the big bad Microsoft. Then there are upstarts like Pandora and Last.fm. And that list doesn’t include the happy shiny iPod and whatever Steve Jobs is cooking up in his basement these days.
The 2007 Florida Marlins have a better shot at the World Series than Slacker does against the rest of the music league. And now let’s talk about the practical challenges:
We understand that Slacker is a wee bit of everything and still trying to be different. As one smart man just emailed and said, “Slacker is trying to be transistor radio of today, but to do that their price point will need to come way down.” What he didn’t say, where would the money come from? Ads – if yes, then they better do audio and display ads; otherwise they will continue to lose money.
A former digital music industry source of ours who has washed his hands of the music mess says while Dennis is the man, “No amount of money would put me back in the music licensing business.” Another digital music business source talking on condition of anonymity says that the cost of goods (i.e. cutting deals with record labels) can be seriously injurious to a company’s profitability.
Don’t blame me for being a tad pessimistic about the odds of this company – but then fortune favors the brave. Especially if they have tens of millions of dollars to spend on their dreams – even if the dollars happen to be other people’s money!
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