Raja Jasti’s Blog - Renaissance Thinking

March 12, 2010

Bubbly, twitter of voice?

Filed under: Media, Mobile, Trends — Raja @ 3:03 pm

bubble Motion, the voice SMS developer is trying to do be the twitter of voice messaging with bubbly.

NEW YORK (AdAge.com) — In India, thousands of consumers are going from tweeting to bubbling.

Bollywood stars Kareena Kapoor and Aamir Khan began using Bubbly and talking about it ahead of the premiere of their hit film 'Three Idiots.'
Bollywood stars Kareena Kapoor and Aamir Khan began using Bubbly and talking about it ahead of the premiere of their hit film ‘Three Idiots.’

A hot new social-networking service dubbed Bubbly, which is essentially a voice-based Twitter, is quickly gaining popularity among Indians. And thanks to Bollywood celebs being early adopters, Bubbly is growing virally and with virtually zero marketing spend.

Bubbly is the brainchild of 5-year-old mobile and social app firm Bubble Motion, which is based in Silicon Valley and Singapore. Its first product was BubbleTalk, a person-to-person voice-messaging service that, instead of SMS, sends mobile audio messages and has about 100 million users now.

According to Bubble Motion’s CEO Tom Clayton, after devoting time to BubbleTalk and other mobile voice-messaging services, “along came the social-media boom and we started to play with a lot of social-media applications.” That led to the idea of audio messages going not just to one person, but to a much larger audience of followers.

In rolling out Bubbly, Mr. Clayton plans to skip North America and Europe and focus on fast-growing, mobile-savvy markets such as India, Japan and Brazil.

Here’s how Bubbly works: Anyone can sign up to follow a friend, family member or favorite celebrity or brand. Posting messages and following is free, and once a new message has been recorded and sent out, users get an alert. If they choose to listen, they pay for the airtime.

Most messages are less than 30 seconds long, and there is currently a cap of one minute.

To post on Bubbly, a user dials a short code, like *7, records a message and hangs up. To listen, tap in another code, like *2. It works on any handheld device, and messages can be posted to Bubbly while still withholding phone numbers for privacy.

Bubbly hasn’t launched officially, but the service saw an estimated 500,000 users in about four weeks after some of Bollywood’s biggest stars started using it, including Aamir Khan and Kareena Kapoor, who were talking about it ahead of the premiere of their hit film “Three Idiots” (which recently swept India’s Filmfare Awards). “It’s personal and it’s easier for a celeb” to connect with their fans using Bubbly rather than a web-based service in which an agent or PR firm might be writing messages, said Mr. Clayton.

Media networks in India are showing signs of interest too; the first major media brand to sign on there is the BBC, which is experimenting with the service as a way of disseminating breaking news. And other networks are in talks to potentially follow suit.

Bubbly’s business model is based on its revenue-sharing partnerships with telecoms. In India, that includes two giants, Reliance Communications and Bharti Airtel.

In a country where many have access to cellphones but far fewer to the web, this type of mobile blogging service seems to make sense. By some estimates, India has the fastest-growing population of mobile phone users in the world as cellphone operators add millions of new customers each month. By 2012, India may have 650 million cellphone users.

To use Bubbly for brand engagement and promotion, a celebrity spokesperson could record messages about brands or send a “bubble” from the set of a forthcoming movie to build buzz. Brands themselves can also bubble short radio-like ads over cellphones, although it’s up to users to opt in.

Bubbly has been beta-tested in places such as Egypt, where BMW bubbled a promotion to visitors to a retail location, and Citigroup used it to send out ads and Vodafone to deliver the latest ringtone.

But Mr. Clayton said Bubbly is targeting five major global markets — India, Japan, the Philippines, Indonesia and Brazil — because they all offer large, mobile-savvy populations whose telecoms and cellphone users are “also open to cool, new innovative stuff.” A web component may have a role in the launch of Bubbly in Japan, but in most markets the focus will remain on a mobile-only version of Bubbly for now.

In countries such as India this actually could fly.

March 11, 2010

Economics of News

Filed under: Internet, Media — Raja @ 11:29 am

Is internet killing the print news business or is it merely exposing the problem with the newspaper business model?

The newspaper subsidizes news with advertising from classifieds and special interest pages such as autos, real estate and enrertainment where it is much easier to sell advertisign. Now that the classifieds are moving to craigslist and vertical niche sites cater to autos, real estate etc., there is no way newspapers can justify the old production and distribution costs. Also blogs and social media are commoditizing news production and distribution. So now that the internet is exposing the problems with the old business model, news media must adapt and find a new workable business model.

Many people including Marc Andereesen suggest the news should go exclusively online. But as Chris Dixon points out, news is lousy for online advertising (even for google). No wonder news media wants to charge for news, which has the small issue of convincing people to pay for news which few are used to right now.

That is the hard conundrum faced by the news media.

Everyone takes quality news for granted and it is not easy create it on the cheap. Someone has to pay for it. Will it be the readers or the advertisers?

March 1, 2010

Internet surpasses Newpapers and Radio for News

Filed under: Internet, Media — Raja @ 11:07 am

From Pew Internet:

The internet has surpassed newspapers and radio in popularity as a news platform on a typical day and now ranks just behind TV.

Only local and national TV news, the latter if you combine cable and network, are more popular platforms than the internet for news. And most Americans use a combination of both online and offline sources. On a typical day:

  • 78% of Americans say they get news from a local TV station
  • 73% say they get news from a national network such as CBS or cable TV station such as CNN or FoxNews
  • 61% say they get some kind of news online
  • 54% say they listen to a radio news program at home or in the car
  • 50% say they read news in a local newspaper
  • 17% say they read news in a national newspaper such as the New York Times or USA Today.

February 14, 2010

Chartroulette founder is a rock star

Filed under: Entrepreneurship, Internet, Media — Raja @ 10:13 am

I love the story of Chartroulette. It is the classic story of a teenager doing something for fun to see it become a web sensation. It reminds of napster (without the copyright issues) and facebook. It has other issues such as profanity and vulgarity everywhere (so if can be ofensive to most people). But the concept is intriguing (and a subset of its current community, not all of it).

Fre Wilson, one of the noted tech VCs, wants to invite him to NYC.

Here are some interesting facts from the NY Times piece: 

  • The founder, Andrey Ternovskiy, is a 17 year old high school student who lives in Moscow
  • He created the site for “fun” and had no “business goals” for it
  • It was inspired by his extensive use of Skype web chat with his friends
  • It spread entirely by word of mouth
  • He’s had to rewrite the code several times in order to allow it to scale
  • His relatives invested some “funds” so he could buy more servers
  • Right now, he’s doing it all himself
  • Chatroulette runs on seven servers in Frankfurt, Germany
  • He is planning to add more servers in new geographic locations
  • Andrey has never been to the USA but would love to visit
  • He has ideas for more “weird in a good sense” features
  • He’s not sure what Chatroulette is any more
  • He thinks it would be best to “found Chatroulette” as a US-based company

I think we’ll reach out to Andrey and offer him a visit to NYC. I’m still not sure if this is something we should invest it, but I’d sure like to meet this guy. He reminds me of many great young entrepreneurs we’ve worked with and his story sounds so familiar.

I think it would be a great experience for Andrey to get exposed to the US tech scene. But I hope he doesn’t get too comericalized and  lose the curoisty and innocence. People love stories like this and it is only natural to hang out with sensations. I just hope that Andrey keeps his eyes on the ball. He seems like a mature teenager and reminds me of Mark Zuckerberg. I wish him the same success as Mark.

One of the commenters on Fred’s blog, Aviah Lor, says it well.

but he shouldn’t be institutionalized (yet). keep the artist side.

Amen.

February 13, 2010

Chatroulette

Filed under: Entrepreneurship, Internet, Media — Raja @ 7:00 pm

Andrey Ternovskiy, a 17 year old school kid from moscow, started a fast growing video site called Chartroulette. It is a real-time p2p video site that connects people over their webcam. It has been a mystery as to who is behind the site until today. This is a perfect example of the power and beauty of viral distribution pioneered by Hotmail. This is how facebook and twitter became popular. If you have products that has viral loops as integral part of the service (not tacked on as an after thought), then you have a good chance to grow exponentially wothout any marketing.

Andrey Ternovskiy

The site, which gets about 20,000 users on a typical night, generates one-on-one Webcam connections between you and another randomly chosen user. The results are occasionally serendipitous, putting you face to face with an interesting person from another corner of the planet. More often though, the site is reminiscent of those old anything-goes AOL chat rooms, only with video. Let’s put it this way: Parents, keep your children far, far away. The site was well described in a New York magazine article recently and, oddly enough, was featured on “Good Morning America” on Saturday.

The lingering mystery, though, was who was behind the site. The question was answered on Saturday when Andrey Ternovskiy responded to the questions we sent to an e-mail address on Chatroulette. Mr. Ternovskiy said he was a 17-year-old high school student in Moscow.

“I was not sure whether I should tell the world who I am mainly because of the fact that I am under age. Now I think that it would be better to reveal myself,” Mr. Ternovskiy wrote.

Here are his e-mailed responses, slightly edited and condensed:

I created this project for fun. Initially, I had no business goals with it. I created this project recently. I was and still am a teenager myself, that is why I had a certain feeling of what other teenagers would want to see on the Internet. I myself enjoyed talking to friends with Skype using a microphone and webcam. But we got tired of talking to each other eventually. So I decided to create a little site for me and my friends where we could connect randomly with other people.

It wasn’t so easy to create it for me, but I have been coding since 11 (thanks to my father who introduced me to the Internet early – most of my knowledge comes from it).

I didn’t advertise my site or post it anywhere, but somehow, people started to talk to each other about the site. And the word started to spread. That’s how the simultaneous user count grew from 10 to 50, then from 50 to 100 and so on. Each time the user count grew, I had to rewrite my code completely, because my software and hardware couldn’t handle it all. I never thought that handling the heavy user load would be the most difficult part of my project.

As the user base grew, bandwidth and hosting bills started to show bigger sums. I am glad that my relatives helped me with it by ‘investing’ some money in my idea.

It wasn’t very much money, so I couldn’t just buy new servers just like that, I had to optimize my code as much as possible instead. I must say that lots of people have helped and still are helping me when I have questions about coding. I am very thankful to them. I still code everything myself, though. I’d love to share work with someone else, but I am not in the USA, and most of the interested people are located far away from me, because I live in Moscow. So I still have to do all the things myself. But I am not worried.

I enjoy what I do. It is like a game for me. I discover new things and solve interesting problems.

I am aware that Chatroulette is popular in USA.  It is interesting, but I have never been to the USA myself. Yet most of my site users come from it. I would love to visit the United States.

I actually think that it would be best to found Chatroulette as a U.S.-based company. But this is just an idea.

I have always wanted Chatroulette to be an international thing. That’s why I chose Germany for hosting, because it is in the middle between Russia and U.S.A. It is also at the center of various backbone European networks. I think this is a good place for hosting a project which connects people around the world with each other.

However, I am planning to get other servers in other countries soon. With it I will add more interesting and “weird” (in a good sense) features which will make my site even more entertaining.

What is currently stopping me from adding other features which have been suggested by many and have been in my mind is that I am not even sure what Chatroulette is now.

Everyone finds his own way of using the site. Some think it is a game, others think it is a whole unknown world, others think it is a dating service.

February 12, 2010

Veoh: Napster of Video?

Filed under: Entertainment, Internet, Media — Tags: — Raja @ 10:56 am

Online video maket is very challenging, unless you are Youtube or Hulu.

Veoh, one of the earliest online video sites is shutting down. It had the backing of some of the top vcs and media execs. But that couldn’t help save the company. 

Online video is a funny space. Its usage is exploding but it is diffcult to make money unless you have scale and content.

But the thing that seems to have killed Veoh is the lawsuit from Universal Music Group (UMG). So in essense Veoh got napsterized. Here is an exceprt from the blog post from Veoh’s founder Dimitry Shapiro.

Two years ago, Universal Music Group (UMG), the largest music company in the world sued Veoh alleging copyright infringement.  While we made every effort to convince them that we were not their enemy and had not infringed on their content, they pursued a relentless war of attrition against us in federal court.  We eventually prevailed in a decisive summary judgment that has set an important precedent for the entire industry.

Unfortunately, great vision, a passionate team, tens of millions of users, millions in revenues and victory in court were not enough.  The distraction of the legal battles, and the challenges of the broader macro-economic climate have led to our Chapter 7 bankruptcy.

February 9, 2010

Lemonade Movie

Filed under: Entertainment, Media, Personal — Raja @ 6:41 pm

Here is a documentary about following your dreams. It is a bit too long but watchable.

February 7, 2010

HTML5 vs Flash

Filed under: Internet, Media, Technology — Raja @ 11:30 am

There seems to be a growing support for HTML5 as an alternative rich media platform to Adobe’s (almost) ubiquitous Flash. Google and Apple are leading this support. Apple’s new iPad doesn’t support Flash.

Jeremy Allaire, one of the people that helped create the Flash platform has a fantastic post on this topic.

I’m also often asked “Will HTML5 Video replace Flash Video?”. Posited as a winner-take-all, absolute, the answer is clearly no. But like the nuance of HTML5 vs. Flash on the Web, there is also a very nuanced and complex evolving landscape in the video format world.

On the PC/Web, video has gained enormous momentum as a fundamental media type for all content on the Web. This has largely been driven by the adoption of Flash Video, which has approximately 75% market-share for online video. For most web and content app developers, this is fine, it is a great run-time and offers an excellent user experience and Adobe has done a very good job keeping the platform contemporary with the most demanding needs of video delivery and quality.

It is the rapid emergence of hand-held devices, however, that is bringing this issue to the forefront. With massive growth in hand-held web browsing from smartphones, iTouch devices and the pending iPad product, this has raised a deeper issue for media publishers who are eager to have their content be accessible to end-users. In particular, it is the show-down between Apple, Google and Adobe over who can control video formats on these devices that is creating challenges. Again, this is not about “what is the right technical solution”, it is about the political economy of who controls the formats that in turn lead to owning downstream audience and monetization opportunities.

The basic idea behind HTML5 video is that there would be a common video format that could be placed and rendered into any compatible web browser, conceptually replacing the need for the Flash run-time to render video in browsers. But there are enormous challenges with this, some political, some technical and some based on audience behavior.

First, right now, there is a lack of common approach among browser makers on what format to use for the HTML video object. This lack of agreement represents a proxy for broader political battles. Apple promotes MPEG-4/H.264, which it uses for it’s device platforms. Microsoft promotes VC-1, it’s own standard video codec. Google has yet to fully weigh-in on what format to support, which leads me to speculate that they will soon introduce a new format, based on On2 VP8, but under a broad open source license to the format and technology. Firefox, with 24% share of the browser market, proposes to use the open source Ogg Vorbis codec.

Second, but related, is the raw reality of browser adoption and churn cycles, and the fact that online video publishers will only adopt standards that have extremely broad adoption. Until penetration rates consistently reach 80%, it will be hard for publishers to switch and adopt a single, new solution. It is more likely that HTML5 Video adoption will reach that critical mass on hand-held devices before it does on the PC/Web.

Third, and equally important, is the more practical issue of the massive industry-wide ecosystem support for Flash Video. From advertising formats, to business logic for the interaction of video with ads and analytics, hundreds of 3rd party technology companies who have built solutions around online video that are built on Flash, not to mention high quality design and authoring tools that sit at the center of a large labor market for Flash design and development; all of this creates inertia for Flash and a relatively high industry-wide switching cost.

But stepping back and looking at this specifically in the context of hand-held computing, where Apple is politically motivated to block the Flash runtime, it is apparent video publishers will be driven to build and operate solutions that leverage HTML5 Video on mobile and iPad browsing environments.

I think competition is always healthy as long as it doesn’t lead to too much fragmentation. HTML5, if it works well and gains wide adoption, will benefit everyone.

January 4, 2010

Flixster buys Rotten Tomatoes

Filed under: Entertainment, Internet, Media — Raja @ 9:51 pm

Tech M&As continue to heat up. Flixster, a social netowrking site for movie fans, acquires user generated movie review site Rotten Tomatoes from IGN, a division of News Corp.

Tomatoes from IGN Entertainment. IGN, a division of News Corporation, will receive a minority equity stake in Flixster as part of the acquisition. Financial terms of the transaction were not disclosed.

“To use movie terminology, we think this is a blockbuster double-bill”

The combination of Flixster and Rotten Tomatoes reaches a huge global movie audience of an estimated 30 million monthly visitors worldwide across multiple platforms: on the Internet, through web-based social networks, and via mobile apps for the iPhone, Blackberry and Android devices.

Both Flixster and Rotten Tomatoes will continue to be available to movie fans as individual properties. Together, Flixster and Rotten Tomatoes give movie audiences an unprecedented total picture of movie trends and opinions, combining half a million reviews from leading critics with 2.3 billion user ratings and reviews.

“To use movie terminology, we think this is a blockbuster double-bill,” said Joe Greenstein, co-founder and CEO of Flixster. “It’s a huge step forward in our goal of connecting users to their own personalized world of movies on any platform they choose. We can’t think of a better pairing for movie fans and our technology partners.”

Flixster’s president and COO Steve Polsky added, “Rotten Tomatoes has built a fantastically well-known brand that moviegoers trust when making their decisions. Combined with Flixster’s social networking and word-of-mouth, we’re creating the leading movie destination on the Internet.”

“Joining Rotten Tomatoes with Flixster creates a company that can dominate the online movie category,” said Roy Bahat, president of IGN Entertainment, who will join Flixster’s board of directors as an observer. “This also enables IGN to focus on serving the male 18-to-34 audience – especially videogamers – and the advertisers looking to reach them.”

Flixster already operates the leading embedded movie applications on Facebook, MySpace, Bebo, iGoogle, and for the iPhone, Android devices, Blackberry and Palm Pre. Together, Flixster and Rotten Tomatoes will be the most comprehensive, one-stop movie-information provider for both end users and technology partners, including: a database of more than 250,000 movies; 2.3 billion user reviews; 500,000 critic reviews; more than 20,000 trailers and videos; the well-known Tomatometer™ and Flixster Scores; unique movie news and editorial content; category-leading social-networking features; localized movie showtime information; theater maps; and online ticketing.

Prior to the acquisition, Flixster and Rotten Tomatoes partnered in several areas, including a recent deal that syndicates critic reviews from Rotten Tomatoes to Flixster’s online movie community, both on the Web and via Flixster’s mobile apps.

This deal makes sense in terms of aggregating audience to become a bigger player to get better leverage over ad CPM rates. In the highly competitive advertising dependent content space it is all about scale.

Speaking about advertising Apple acquires quattro wireless, a mobile ad company, for a reported $275M.

Skype on TV

Filed under: Entertainment, Internet, Media, Technology, Trends — Raja @ 9:44 pm

Soon you will be able to skype directly from your living room TV.

 

The Skype calling service will be incorporated into TVs from Panasonic and LG Electronics, and available in North America.

SAN FRANCISCO — There will soon be something new to watch on the living room TV: your relatives and friends in different parts of the world.

On Tuesday, Panasonic and LG Electronics, two of the top television makers, are to announce that they are integrating the free online calling service Skype into their Internet-connected high-definition televisions.

People who buy these TVs, along with an extra Web camera and microphone accessory designed for the living room, can conduct free, live video chats and phone calls from the couch.

The announcement is the first of many expected from TV manufacturers at the Consumer Electronics Show in Las Vegas this week. Television makers are trying to give consumers reasons to begin replacing their high-definition TVs that they bought only in the last few years. TV makers are also trotting out ever-slimmer TVs, adding Internet connections and preparing to introduce 3-D technology.

“This is the year when Internet-connected TVs will start to take off, and there is no doubt that soon every TV that ships will have built in Wi-Fi, webcams and microphones,” said Jonathan Rosenberg, chief technology strategist of Skype. “This is our first step.”

The domestic TV market survived the recession in surprisingly good health, shipping 33.86 million units during 2009, up 17 percent from 2008, while retail sales were generally flat, according to the research firm iSuppli. But furious competition among manufacturers cut deeply into prices and profits, with the price of a 46-inch LCD TV, for example, falling under $1,000 for the first time.

Internet-enabled TV sets, though they have not yet proved a hit with consumers, can restore some of those shrunken profits. A 50-inch plasma, high-definition TV with a broadband connection from LG runs about $300 more on Amazon.com than a TV of the same size without the connection. In some cases, TV makers also get a slice of the revenue when customers make Web purchases from their TVs.

That is where Skype comes in. Until now, Web-connected TVs have accessed only a limited number of online services, like widgets from Yahoo that offer weather and news updates, or Netflix’s streaming movie service. By adding other services and making a television more like a PC, TV makers now want to change the very identity of the primary screen in the house.

“The TV is not just a one-way entertainment device, but a two-way communications device and a portal into other people’s lives,” said Bob Perry, a senior vice president at Panasonic.

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