Archive for July, 2010

Report YouTube tinkers with e-commerce program

Saturday, July 31st, 2010

Google is trying to expand YouTube’s e-commerce profile by offering viewers in Germany, Spain, and the Netherlands click-to-buy products, something that it had offered only in the U.S. and Great Britain, according to Peter Kafka at All Things Digital.

Expect to see an increase in this type of experimenting at YouTube as Google tries to turn the Web’s No. 1 video site into the cash cow many once predicted it would become. Google has acknowledged struggling to generate significant revenue from YouTube.

Kafka reported Wednesday that in these countries YouTube isn’t satisfied with just posting links to Amazon or iTunes at the bottom of the video page.

A YouTube representative was not immediately available for comment.

(Credit:
YouTube)

The company is now linking in the form of transparent overlays that appear within the videos. The links can only be seen while watching clips on YouTube and can’t be found on embedded clips.

Monty Python is no laughing matter here. Google is overlaying click-to-buy links inside videos.

Neil Young rocks JavaOne

Saturday, July 31st, 2010

“I am kind of a pack rat,” he said, adding that over the years he’s accumulated a lot of unreleased material. “I only give the record company what I want people to hear at the time. So I have a lot of unreleased material. Putting it all together tells a much different story than just what has been produced (for public consumption).”

He lauded the Internet because it’s a great place to find science experts all over the world. “People who are just kooks,” he said. “You have to filter and separate and look on the perimeter of scientific world and give them encouragement.”

“The recording business as we know it is changing. As an artist I try to remove myself from the business,” Young said. “I steer myself away from that…the commerce of distributing music will work itself out.”

Young was asked how music and technology go together. “There is a lot of math; it is emotional math,” he replied.

Young is planning to chronicle the damage cars are doing to the environment and the development of a car that doesn’t require roadside fueling in a new movie. The car will be wired to the gills, with all kinds of sensors and cameras feeding data, Young said.

“America is full of big people; it’s a huge country and the wind blows. I don’t want to have cars blown off the road with high winds,” Young said. “We work with aerodynamics, and there’s the X Prize effort to get 100 miles per gallon.” Scientists are working on interesting concepts such as cars running on compressed air with stackable motors on the wheels, he said. Other solutions are more fringe.

That said, he’s clearly not a fan of MP3 quality: “Putting on a headphone and listening to MP3 is like hell,” he said.

Of course, digital and multitrack recordings in the ’80s didn’t sound so great either. The sound was shallow, he said. Now, he said, audio quality is climbing, though he still makes all his recordings in analog. “I plan to dumb my analog to the higher level so masses can enjoy it,” he said.

In a meeting with a few press members following the JavaOne keynote, Young talked about the Archive project, which goes back to the late 1980s. The first stage, he said, was collecting the materials.

Larry Johnson, of Shakey Films (which works on all of Young’s films), said Young had the concept for his latest project on paper 15 years ago. About two years ago, they put the footage all together and waited for the Blu-ray HD-DVD fight to end.

The compilation of the unpublished clips helps show Young’s musical evolution, the effects of success, and the ups and downs, he said. In the beginning, he said, he was nervous and talked a lot, but was very focused on singing his songs. “I’d make a lot of jokes and then sing a tear-jerker song.”

They started off envisioning it to be something like a video game, a “3D tumbling experience through time,” he said. “You could see the history of the world and other great performances through time. It would be a nice thing to do. Hopefully we will get this approach done, but by the time we are halfway through, it will morph.”

Young said that he wasn’t interested in the Tesla, a sporty and expensive electric car. “The Tesla isn’t ready to buy yet–you have to plug it in,” he said.

On surveillance, Young said, “Surveillance society is out of control. There is nothing you can do. You can fight it…there will be an ongoing battle for privacy.”

Users will be able to download any archival materials, which are automatically assigned to their place in a chronological time line, Young said.

Editor’s note: News.com’s Dan Farber reported Young’s keynote speech and a follow-up Q&A live from JavaOne.

SAN FRANCISCO–At JavaOne here, Neil Young showed off his multimedia project that chronicles his music career and uses Java to do so.

“We are cramming the disc full with every feature we can,” Young said.

Young said that he is an “overseer” more than carrying on a day-to-day role in his electric car project.

“Putting on a headphone and listening to MP3 is like hell.” –Neil Young

Besides music, Young is working with engineers and developers to create a
car that doesn’t require roadside refueling. He is working with a variety of developers and scientists to develop a large, American-style car that doesn’t require fossil fuels. “I have trained myself to take this on,” he said.

Young said he tried to do the project on DVD, but users couldn’t watch the high-resolution video and listen to the music at the same time. With Java and Blu-ray, the content can be updated and offer the best viewing and listening experience, as well as great navigation and design. “Storage is the only limit,” Young said, and recommended the Sony’s
PlayStation 3 as the best way to view his project.

Neil Young and Sun CEO Jonathan Schwartz

Young said you can’t be “scared or paranoid about trying to survive.” Sure, when the digital revolution came along, it was “like getting hit with icepicks.” Now, he said, the ice is tiny, maybe a little like snow.

He added: “We are trying to give them quality whether they want it or not. You can degrade it as much as you want, we just don’t want our name on it.” People are taking music and doing whatever they want with it, he said. “The laws don’t matter. These are people in their bedroom doing what they want. It’s the new radio.”

“It’s very kooky. People say you are nuts but I am used to that,” he said. “People are so paranoid about the power establishment. That’s what they think about when you come up with an idea that is going to bring change.”

(Credit:
Dan Farber/CNET News.com)

Is Google’s Eric Schmidt the next David Geffen

Saturday, July 31st, 2010

(Credit:
CNET Networks)

Of course, there’s Apple. Anybody selling music, either downloads or the ad-supported kind, must consider Apple their biggest competitor. Apple’s iTunes appears on pace to sell 2 billion songs a year.

Incredibly, Google CEO Eric Schmidt, a lifelong technologist, could find himself becoming an accidental music industry titan, a sort of digital-age David Geffen or Ahmet Ertegun. Google, of course, has many challenges ahead of it before executives there wield that kind of influence. Geffen and Ertegun, after all, were two of the most powerful label bosses ever.

More than 1 million G-1 units were sold in 2008, the year it was launched. Apple has raised its mobile music stake by enabling
iPhone owners to download music via cellphone networks.

Studies show that sales of mobile music will skyrocket in the next two years. Songs purchased via handsets will reach $7.3 billion by 2011, nearly equal to that of digital downloads, according to a report from eMarketer. Together, they are expected to make up 56 percent of total music sales.

For several years, YouTube has been a disruptive force in film and television. Now music poobahs are wondering what designs Google may have on their businesses. Three of the four largest recording companies are in talks to renegotiate music-licensing deals with Google’s YouTube. Sony Music is very near to inking a YouTube agreement, say my industry sources. Meanwhile, YouTube has reportedly started to generate “tens of millions” for some of the labels.

At the same time, the music store Amazon.com created on Android, Google’s mobile-phone operating system, is leading to big music sales. Google declined to provide numbers or to comment for this story, but my sources say that the labels are “very happy” with Android’s songs sales. In addition, Google could one day tap into a huge market by helping people discover and buy music using search, according to Susan Kevorkian, an analyst with research firm IDC.

For example, Warner Music pulled out of talks with YouTube after Google reps declined to fork over upfront money, my music sources said. All three of the other labels receive advances but Warner doesn’t. The reason is Warner agreed to forgo an advance back in 2006 when it signed its original deal and YouTube wants to maintain those terms.

Google’s name is on the lips of music industry powerbrokers.

For example, Google could post “click-to-buy” links when someone keys a song title into Google’s search engine, Kevorkian said. The company could also conceivably use its search engine to suggest songs or alert people to local music events.

Google’s a powerful music distributor
Let’s start with YouTube. Worldwide visitors to the site now number more than 100 million per month. Of the top 20 all-time most viewed clips at the site, 12 of them are music videos. The most watched YouTube channel belongs to Universal Music Group, the largest of the four top record labels. And YouTube has become one of the most popular ways to share music legally.

But in terms of influence, matching what the old record moguls accomplished isn’t that hard to imagine.

Google’s G-1 cell phone could become an even more powerful music platform than YouTube–that is if the phone continues to attract consumers.

The top music labels are seeing big music sales from Google's G-1 mobile phone.

YouTube is trying to capitalize on the popularity of music videos by posting click-to-buy links near the videos that lead to Amazon or Apple’s iTunes. Google declined to provide sales numbers for the ads.

For Google, one of the main challenges is executing a new music ad model. Two music industry sources say that Google has done only a lackluster job of selling ads against music videos and other label content. Another hazard is in negotiating with the labels.

No one is saying, of course, that Schmidt will be hanging gold albums on his office wall or moving to Hollywood. For one thing, Google isn’t in the business of promoting talent or producing records. For another thing, the company hasn’t produced the kind of revenues that would put it on par with the likes of iTunes or even Amazon, according to one music industry source.

Google needs to drive more music revenue
Where things could get sticky for the labels is if they hand too much power to Google. They don’t want Schmidt to be able to dictate to them the way that Apple CEO Steve Jobs (registration required) has for the past few years.

Perhaps the biggest question is whether anybody wants Google to have a grip on videos, music, news, books, photos… all our media?

Google’s appeal as a digital jukebox is first that it’s free of charge to users and that many people are so familiar with the site. The site enables fans to embed songs on their blogs or Web sites and provides an easy and legal way to share music. If someone wants to send a song to a friend, they can just e-mail a link to the song’s YouTube video.

This is all mostly good news for the major labels. They need to find new distribution models as record stores disappear. They need competitors to iTunes, which has become too powerful for some in the music business. They need to have a strong presence in mobile music sales.

Not only that, Google at this point doesn’t possess the licensing rights to the music libraries from all four major labels. YouTube and Warner Music Group failed to reach a new licensing agreement and Warner’s content has been removed from the site.

Apple selling limited number of 4GB iPod Nanos

Saturday, July 31st, 2010

(Credit:
CNET)

Apple is selling a 4GB version of the new iPod Nano, shown here, in certain areas of Europe.

According to the reports, the 4GB model costs 120 euros, or $170.57, as compared to the $149 you’ll pay for the 8GB model on Apple’s online store. Yeah, I can’t make sense of that pricing strategy, either.

Apple appears to be selling a 4GB version of its new
iPod Nano in Europe, but not in its home market.

Engadget noticed that 4GB Nanos in the new color scheme were appearing on store shelves in the Netherlands, and The Register was able to confirm with an Apple representative that a “limited number” of the smaller iPod Nanos are being sold in various markets.

Apple introduced 8GB and 16GB versions of the new iPod Nano last week during its annual September iPod event.

CNET News Daily Podcast Why there’s gold in that

Saturday, July 31st, 2010

Download today’s podcast

Tech job postings fall 40 percent in March

Microsoft expands its hardware line

Microsoft plugs security holes

CNET News’ Martin LaMonica reports on a new generation of trash-to-energy technologies that advocates say are cleaner than incinerators. Listen now:

Cleaner trash-to-energy tech hits the ground

Westerberg on Amazon an exercise in frustration

Saturday, July 31st, 2010

(Aside: I’m listening to the record now and the song just came up that starts “Everyone’s stupid, everyone’s stupid….”)

Five minutes down, and still no Paul Westerberg album! (What’s that about one-click?) So, back to Firefox…only for some reason it says I have to download the Downloader again. I guess it’s a cookie thing–the cookie was stored in IE so when I went through Firefox to download the record, Amazon couldn’t read the cookie to know I’d already downloaded the Downloader. Whatever. I relaunched IE, found the page for 49:00 again, began the download, saved to a folder, opened the .amz file, and finally–at long last–the song was added to iTunes.

It was totally worth it, by the way. It sounds like the Replacements thrown into a blender and mixed up like a Guided by Voices record.

Next, Amazon told me I had to download the Amazon MP3 Downloader, a piece of software that automatically adds Amazon downloads to iTunes or the Windows Media Player. So I completed the download, but as part of the installation process, it automatically opened Internet Explorer and sent me through a trial run to download a free Apples in Stereo song–apparently that’s how it initializes the first time. Weird:
Firefox is my default browser and I downloaded the Downloader in Firefox–but OK, I’m committed.

So I headed over to Amazon.com’s MP3 store. The front page has 49:00 as a highlighted selection. But the album download page says this song is available as a “full album only.”And you can’t download it by clicking on the title. Helpful. After stumbling around a between title pages, I finally figured out the only way to download the album is to click on the button on the upper right that says “Buy MP3 Album with 1-Click.” Fine.

Unsatisfied. Not with the album, but with the record store.

I’m a Replacements fan. Paul Westerberg’s new album, 49:00, sounded intriguing. Like Radiohead and Trent Reznor and others, he’s released it as a download first. Unlike these previous experiments, 49:00 is sold as a single album-length track. And while he’s not technically giving it away, it costs only $0.49–a bit more than one cent per minute. (Paradoxically, the album is not 49 minutes long, but 43:55. The number refers to his 49th birthday, which occurs on the last day of 2008.)

So the free song download started in IE. It asked me where I wanted to save the .amz file. I created a new folder called Apples in Stereo within My Music, then opened the .amz file. Finally iTunes launched, and at long last the Apples in Stereo song was added to my library. Although darned if I could find the MP3 in the folder I created, and the .amz file was gone.

Who at Amazon thought this was a smooth process?

Range Fuels expands funding to speed cellulosic-et

Saturday, July 31st, 2010

Other companies on the hunt to make cellulosic ethanol on a large scale include Coskata, which signed a deal with General Motors and intends to have a pilot plant running next year. Coskata uses a combination of gasification and microbe processing to convert a range of carbon sources to ethanol.

GM last week said it has also invested in Mascoma, a company using a third approach: genetic manipulation of bacteria optimized for breaking down sugars and fermentation.

With a planned plant for 2009, Range Fuels will be one of the first providers in operation.

There’s growing awareness of the problems associated with corn-based ethanol, which research shows does not significantly reduce greenhouse gas emissions compared to gasoline. The high demand for ethanol, driven by government mandates, is also being blamed as one reason for higher food prices.

The money will be used to build the first phase of its ethanol plant in Soperton, Ga., which will use forestry waste as a feedstock. The plan is to complete a 20 million gallon-per-year plant next year that uses a gasification process.

When it comes to next-generation biofuels, it’s a competition for both technology and capital.

Cellulosic ethanol from wood chips, grasses, or agriculture waste is considered a better alternative than corn, but production has not yet been done on a commercial scale.

Range Fuels expanded its previously announced series B funding from $100 million to $166 million, according to reports. Private Equity Hub on Monday cited a regulatory filing, saying Morgan Stanley Capital Group joined the round. VentureBeat reported the expansion last week.

Recognizing and preventing burnout

Saturday, July 31st, 2010

If you recently took a swing at your boss, then you’ve been there for a while.

Bottom line
Burnout happens. It happens in high-stress jobs, and it happens in the high-technology industry. Sure, your job is important. But your career and your personal life are more important. Staying in a job where you’re burning out may earn you a few paychecks, but it may cost you far more in the long run.

How to avoid burnout
Avoiding burnout usually comes down to recognizing the source. If it’s an individual or a one-off thing, then it’s probably not going to become a chronic problem. If it’s a company, then switching companies might do the trick. If it’s your profession, then it’s time to consider a different one.

If that fails, then get out. I’m not kidding. You can figure out what went wrong and psychoanalyze yourself later. There’s just too much at stake. Find yourself another job, take a break, if you can afford to–whatever it takes. Just get out. Get some distance and perspective, put yourself back together, and start over.

How to recognize burnout
This is not rocket science. If you complain about your boss or have an ongoing feud with the jerk in the cubicle next door, that’s not burnout. If you used to enjoy or at least tolerate your job, but now you’re constantly stressed and frustrated, and there doesn’t seem to be an end in sight, then you’re probably experiencing burnout.

What to do about burnout
Again, not rocket science. It’s like peeling an onion. First, take a vacation. That’s right; you have to try this old standard first. Get some perspective, and see if that helps. Try to determine the source of your stress, and change it–transfer to a different group, ask for a raise, whatever.

In case you’re not acquainted with this somewhat poorly understood phenomenon, burnout is sort of a workplace version of depression. You know, you used to whistle while you worked, and now you’d rather get a root canal than get out of bed to go to work.

I don’t know about you, but I’ve experienced job burnout, and it isn’t pleasant.

Burnout is bad news. If you’re not aware that your work stress and frustration have reached the boiling point, you can find yourself in a near-constant state of irritability or anxiety. You might end up doing things you’ll later regret and damaging your career or your personal life.

There are three things you need to know about burnout: how to recognize it, what to do about it, and how to avoid it.

Times of crisis often lead to the discovery that you might be on the wrong path. Sure, it’s tough, especially if you’ve put a lot into your career, but it happens. What’s worse: changing careers or being miserable for the rest of your life and ending up a bitter old person?

In addition to high-stress jobs like emergency workers, air traffic controllers, and doctors, I was surprised to find that high-tech professionals are prone to burnout, according to a number of studies.

Novell’s third-quarter loss widens, but Linux boom

Saturday, July 31st, 2010

Regardless, it’s good to see Novell doing well in its Linux business. Its other product lines, excepting Workgroup which declined a further 1 percent, also showed growth. Could Novell be the first company to demonstrate that open source can rejuvenate a company’s top and bottom lines?

Novell beat Wall Street’s estimates with a solid third quarter, but the real story is in its continued Linux growth. Net revenue rose to $245 million from $237 million in 2007, but Novell’s third-quarter loss quadrupled to $15.1 million from $3.7 million in 2007. The company reported its annual adjusted operating margin to be between 8 percent and 10 percent, up from an earlier expected 7 percent to 9 percent.

Novell has invoiced Microsoft for 73 percent of the original $240 million investment. There’s now another $100 million to burn down, which I expect Microsoft to continue renewing as it attempts to chip away at Red Hat’s leadership position in the Linux market. Microsoft will fail at this game, but perhaps it will take a billion dollars to realize this–or maybe a further weakening in the Windows server market vis-a-vis Linux.

commentary

So, things are looking up.

Nowhere is this clearer than in Novell’s Linux revenue, which soared 30 percent, year over year, to $31 million for the quarter. Novell invoiced a total of $51 million in Linux bookings in the quarter, up 36 percent year over year. Novell’s Linux revenue is growing faster than the market, which IDC pegs at 19.7 percent CAGR from 2008 to 2010.

Where is much of it coming from? Unfortunately, Microsoft, but some signs suggest that Novell is increasingly standing on its own in the Linux market, rather than relying on Microsoft to peddle SUSE Linux (which it has no long-term incentive to do).

An obituary for the major labels

Saturday, July 31st, 2010

(Credit: Kurt Steuber via Wikimedia Commons)

If you’re a musician, and you want your music to be heard, go anywhere else. If you’re an investor looking for a business with a lot of upside, go anywhere else.

Sure, EMI’s taking in far more revenue than Topspin–it’s still got The Beatles’ catalog, after all, and Topspin’s just a start-up–but look at the momentum, the level of excitement, the bottom line. There’s no comparison.

And I won't forget to put roses on your grave.

Update, 3/24: An SXSW organizer contacted me to let me know that the show included 14 panelists from major labels, as well as 20 panelists from independent labels. The truth remains that I didn’t see, hear, or meet any–but of course I couldn’t attend every panel. I’ve corrected the post accordingly.

A year ago, there were still some arguments for the necessity of major labels to handle marketing, promotion, and other tasks. Not anymore. The conventional wisdom now: if you’re interested in the music business, and you want to change the world and make lots of money, go anywhere else.

Established artists are going independent as soon as their contracts expire–the latest is Counting Crows–and reporting, again and again, how much better they can do without a label.

At SXSW, the conventional wisdom from every panel I attended, every business meeting I had, and every artist and fan I spoke with, was that the major labels are technological dinosaurs with no chance of survival. I didn’t meet a single major label employee in the entire four days I was there, though at the Guitar Hero-Metallica event, the PR coordinator spent a long time explaining to a TV crew that all interview requests had to be approved by the band’s label. Ah, the good old major labels we know and love–barriers, not enablers.

The RIAA seems to serve no purpose except to sue customers and try to get damages that are many thousands of times the value of the product infringed. Warner CEO Edgar Bronfman Jr. took home a $3 million bonus after his company lost $35 million and earned his spot on the CEO wall of shame.

Contrast that with Topspin, which oversaw successful launches of several albums and was just at SXSW to announce a major update to its automated marketing platform.

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Almost a year ago, I posted about how two executives from major Web companies had taken new positions related to digital music: Douglas Merrill left Google to become EMI’s president of digital operations, and Ian Rogers left Yahoo Music to become the CEO of Topspin, a then-new company specializing in direct-to-fan marketing.

A year later, Merrill’s gone, following Guy Hands out the door. (Hands was the CEO of private-equity firm Terra Firma, which bought EMI in 2007.) I’m not sure what he did there, but imagine he was behind the portal site that EMI launched last year…to no effect whatsoever.

(Aside: as much as Metallica may represent the old record industry, its SXSW set absolutely slayed, consisting almost exclusively of pre-Black Album material, and so fast and tight and loud and awesome in the original sense of the word that it seemed like it–and we–were all 17 again. Pitchfork’s take is absolutely right; it’s not fair to compare them with any of the other bands at SXSW. Long may they rock, with or without the recording industry as we know it.)

I’m rambling, but keep looking. U2’s second-week sales dropped 75 percent–nobody cares. Sony hired Rick Rubin to come up with a digital strategy, but nothing’s happening (although Rubin remains a successful producer).