Raja Jasti’s Blog - Renaissance Thinking

March 31, 2009

Sun-Times Media files for bankruptcy

Filed under: Media — Tags: , — Raja @ 4:57 pm

Carnage of newspaper companies continues. Sun-times media, publisher of Chicago Sun-Times, is filing for bankruptcy.

CHICAGO, Mar 31, 2009 (BUSINESS WIRE) — Sun-Times Media Group, Inc. (Pink Sheets:SUTM) today announced that it and certain affiliates (the “Company”) filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code. The filing was made earlier today in the U.S. Bankruptcy Court for the District of Delaware.

The Company and its principal operating subsidiary, the Sun-Times News Group, will continue to operate its newspapers and online sites as usual while it focuses on further improving its cost structure and stabilizing operations. The Company has retained Rothschild Inc. to commence a process for the sale of assets pursuant to Section 363 of the U.S. Bankruptcy Code. The Company believes it has sufficient financial resources to continue customary day-to-day operations during this process.

The Company operates 59 newspapers and their corresponding online sites. Those titles include: the Chicago Sun-Times, the SouthtownStar, Beacon News (Aurora), Courier-News (Elgin), Herald News (Joliet), Lake County News-Sun (Waukegan), Naperville Sun, Post-Tribune(Merrillville, Ind.), and weeklies published by Pioneer Press and Fox Valley Publications. The Company also publishes free shoppers and content on all of its corresponding online news sites and other sites such as YourSeason.com.

Tube Mogul raises $3M

Filed under: Internet, Media, Technology — Tags: , — Raja @ 4:44 pm

Tube Mogul, online video distribution and analytics company, raises $3M in funding.

Web video distribution and measurement startup TubeMogul just emailed to say it raised $3 million in Series A funding from Trinity Ventures. The Emeryville, Calif.-based company has now raised a total of $5.2 million, including an earlier seed round.

TubeMogul has grown up alongside episodic video content, and it now has 75,000 users with millions of streams. It helps publishers syndicate and analyze their content across the oh-so-many web video sites and platforms. Customers include CBS Interactive, PBS, Ford Models, Universal McCann, Avenue A, Conde Nast, FreemantleMedia, Warner Bros, The Onion, Next New Networks, Revision3, Red Bull, Intel, Cisco, Home Depot, Green Peace and the White House.

Tube Mogul is a very useful service that helps web video publishers automate the distribution and measurement of the usage across various video sites.

Downloading music is legal or not?

Filed under: Entertainment, Internet, Media — Raja @ 3:17 pm

Mike Arrington ponders on whether stealing music is right or wrong.

Let’s put the law aside for a moment - this post is about doing the right thing. We’ve been hammered with messaging from the government and the music labels that downloading or listening to music on the Internet is stealing, unless you pay for it. We see the video clips before movies at the cinema saying its wrong. We read about lawsuits against twelve year olds for downloading music from BitTorrent. Our government is even willing to threaten other sovereign nations over music piracy.

But over the last few years the line has blurred to the point where there really isn’t any line any more. We can listen to free, on demand streaming music at MySpace Music and lots of other sites. It’s ok to do it at MySpace, but it’s wrong to do it at Project Playlist, just because the right contracts aren’t in place? Just a couple of years ago anyone listening to free streaming music anywhere on the Internet was violating copyright and subject to being labeled unethical. Today, its no problem. And you don’t even have to listen to audio ads.

But downloading music, that’s still wrong, right? Nope. If you live in China, you can download music legally from Google for free. No problem.

I think Mike is asking the wrong question but makes excellent points. Stealing of course is wrong, in most cases, unless you are doing it to save lives etc. But here is a more interesting question; is downloading music legal. The answer apparently is it depends. It depends where you download it from and which country you are in and what you use it for. No layman can be expected to understand this. The laws need to change and they need to be simple and easy to understand and enforce.

mobile will revolutionize health

Filed under: Mobile — Tags: , — Raja @ 2:46 pm

CTIA is having panel today on mobile health (thanks dinesh!).

John Walls, Vice President of Public Affairs for CTIA, a leading wireless industry association, recently interviewed the Center for Disease Control’s  Dr. Jay M. Bernhardt, who serves as the CDC’s Director of the National Center for Health Marketing.

“Mobile communications is absolutely going to revolutionize not just health communications, not just public health, but, I believe, health in general,” Bernhardt said during the interview. “We can put [health-related information] on television, on  billboards, or your doctor can tell you… but one of the big problems with mass communications is that it’s hit or miss… [while] mobile technology is always within an arm’s reach.” 

CTIA Wireless Health Interview

You can watch the video of the above interview here. No embed code was available.

I am a big believer in the potential of mobile in revolutionizing healthcare. We will soon be launching an exciting service in this area.

Facebook loses CFO

Filed under: Business — Tags: — Raja @ 2:25 pm

Gideon You, facebook CFO, is leaving the company.

Facebook is losing its CFO Gideon Yu. The Wall Street Journal broke the news earlier today, and speculated that the reason could be that Facebook might want to make an early bid for an IPO and wants a CFO with public company experience (which is complete nonsense). Yu was previously the CFO of YouTube. At Facebook, he was key to raising money from Microsoft at the famous $15 billion valuation, but as the economy soured he was not able to find as many takers at that same price, despite Facebook’s voracious need for capital to keep up with its growth.

It is ’show me the money’ time for social networking sites and there will be a lot of shaking out. Hi5 is announcing layoffs.

Mike Arrington highlights facebook’s troubles keeping its executives.

Google shuts down video adsense program

Filed under: Internet, Media — Tags: , , — Raja @ 2:23 pm

Monetizing video is a tricky one. Google tried to throw some of that adsense pixie dust on video, but apparently it doesn’t work. Paid COntent reports that google is shutting down its video adsense program.

Another Google (NSDQ: GOOG) advertising product bites the dust. For years, it was almost unheard of for Google to pull the plug on one of its advertising offerings. But lately, it’s been doing a lot of that. The search giant is dumping its Video AdSense program. By the end of April, publishers will no longer be able to sign up for the revenue-sharing service, and those with AdSense videos embedded on their page will have their videos replaced. Google was careful to note that publishers would still be able to embed YouTube videos onto their pages, but they would have to do it the old-fashioned way—by going directly to the site and pulling embed code from individual videos. The move follows Google’s jettisoning of its Radio Ads program—so that it can concentrate on a streaming audio ad product—last month. In January, Google said it was shuttering its Print Ads service for newspapers. The decisions reflect Google’s view that it can’t work miracles anymore as it struggles with the deteriorating economy.

Hulu snags Disney deal

Filed under: Entertainment, Internet, Media — Tags: , — Raja @ 10:26 am

This should give a huge boost to Hulu. Reports say that they have struck a deal with disney to bring it in as an equal partner with NBC Universal and New Corp. This deal would make Hulu the most powerful professional content player in the industry. This would be a blow to Youtube which tried to snare Disney at the eleventh hour, but only got a short form video deal.

A deal to bring Disney into the Hulu fold is “basically done,” a single source familiar with the discussions tells us.

PaidContent reported that if Disney were to do a deal, it would take a 30% stake in Hulu and become and equal partner to NBC Universal and News Corp. That means like NBC and News Corp before it, Disney would agree to spend $50 million marketing the site.

Providence Equity Partners will hang onto its 10% share.

Google worth more than GE?

Filed under: Business, Trends — Tags: , — Raja @ 8:21 am

Google has a bigger market cap than GE. This economic downturn is the reverse of dot com bust, where companies with real assets are devalued. It is more like during the time of dot com boom. Crazy times.

No matter how long or how deep a severe economic downturn, its residual effects can still be somewhat jarring, such as when a company with annual revenues of more than $182 billion is worth less on the stock market than one with $21.8 billion in annual sales. Over 100 years old, General Electric, long the vanguard of U.S. industrial might, ended today’s trading session with a market capitalization just a shade under $105 billion. That compares with the market cap of Google, which now stands at more than $108 billion. Granted, we’ve seen this movie before, during the last bubble, when Cisco Systems surpassed GE.

Wikia search closes

Filed under: Internet — Tags: — Raja @ 8:15 am

Wikia search, a user generated search results project started by jimmy wales who wanted to bring wikipedia approach to improve search, is closing down.

Wikia is announcing on Tuesday that it is closing the Wikia Search product. The service was intended to be a user-generated search engine, through which users could influence the rankings of results for all other users.

Jimmy Wales, founder of Wikia and driving force behind Wikia Search, fully expected the development of Wikia Search to be a “long-term project.” The current economy, however, has forced him to “reassess everything,” and “do what we need to do to get to profitabililty.”

Wikia Search was not on the right trajectory. “This one is too far away,” he said. “It was going to take at least a another year to two before it’s usable by the public, and we can’t afford that right now.”

Even given a generous time frame for success, Wikia Search was not making its numbers. With only 10,000 unique users a month over the past six months, Wales said, it was hard to justify the resources being put into it. Two full-time employees will lose their jobs as the project is shuttered.

Life.com launches

Filed under: Entertainment, Internet, Media — Tags: — Raja @ 8:09 am

Mediamemo reports:

cassius-clay-beatlesHere’s refreshingly retro take for a Web site launching in 2009: One that only features photos. Lots and lots of really interesting photos.

Meet the new Life.com, a joint venture between Time Warner’s (TWX) Time Inc. and Getty Images that launches today.

This one doesn’t need a whole lot of explanation. Time Inc. stopped publishing the legendary Life photo magazine in 2000. Now it’s trying to revive the brand online.

Last fall the company worked with Google (GOOG) to host a huge image catalog on the search engine; today it wants to drive traffic to its own site, where it will feature seven million photos at launch and promises to add 3,000 a day. Life.com is a 50/50 JV with Getty, which built the site, will run it out of Seattle and will be providing it with new, exclusive images; Time Inc.’s people will sell ads.

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