Posts from YouTube

Fast, Fair, and Frictionless Content Licensing On The Internet (continued)

Last month I posted two back to back suggestions for industry self regulation on the issue of copyrights and the Internet. The first was a competitive market for third party whitelist and blacklists. The second was "fast, fair, and frictionless content licensing on the Internet."

I am seeing signs that both models are emerging, slowly, but surely.

In the case of frictionless content licensing, I wrote:

I think it will be even harder to get the content industry to build instantaneous real-time self service licensing systems for their content.

But happily, the photography industry is proving me wrong. Yesterday, Getty Images announced something they call PicScout Image IRC. Not the most memorable name. But it is "instantaneous real-time self service licensing on the Internet."

Here's how it works. When an image is posted to your service, you send the image to them via their API, they fingerprint it in real time, check the fingerprint against their database of rights managed photographs that are out there, and then tell you if the image is licensable, must be taken down because its not licensable for the Internet, or if they don't have it in their database, then you keep it up under DMCA. And they handle all the billing for the licensable content. If you don't want to pay licenses for images posted to your service, you can use their service just to take down all images that are under license.

It is a lot like what Audible Magic does for the music industry or what Content ID does for YouTube, in terms of rapidly identifying the content and determining if it is infringing on a license or not. But PicScout goes one step further and provides an instant license to the content if the application wants one. That's a big deal and is the very step I think the content industry needs to take to tackle copyright infringement on the Internet. It is not enough to say something is infringing. The right thing is to say, "that is infringing, but here is a license" and to do that in real-time.

Any developer can use this PicScout Image IRC API. No meetings required. No lawyers required. Fast frictionless licensing on the Internet. I really like it.

#Politics#Web/Tech

In Defense Of Free

I have written so much about free here at AVC that it should be called AVFree. In fact, I've even written a post with this exact same title (almost exactly seven years ago, the summer we invested in twitter, zynga, and tumblr).

I haven't touched this subject much in the past few years but given that the topic has been in the air in the tech blogosphere, I thought I'd address it again.

First, let me say this is specifically not about Twitter. Folks should be encouraged to compete with Twitter. Competition is good for everyone as we talked about here a week or so ago.

This post is in reaction to the idea that services should be paid to ensure that they are appropriately focused on the consumer/user as opposed to the marketer/advertiser/sponsor.

Let's start with advertising. I do not believe it is evil. In fact, I believe it is a fantastic way to support services that want the broadest adoption and want to be free. Think about the Super Bowl, the World Cup, the Olympics, the Oscars, the Presidential Debates, the news coverage of important events. These things are ad supported and free for anyone to watch who has a TV and an antenna. It is good for society for these things to be available to the broadest audience.

There is a paid TV business and it is flourishing. The fact that at its base level TV is free does not mean that all TV has to be free. Free TV does not commoditize paid TV. They co-exist nicely. But we had free TV well before we had paid TV. Free is the foundation that creates a paid tier. That's what Freemium (a term that was coined here at AVC) is all about.

Now let's examine services that have a free and paid tier. Spotify is a good one to look at. Spotify's core business model is a subscription music service. All you can eat music for a fixed price every month. And yet this is what they show you when you land at Spotify.com for the first time.

Spotify

Why do they show you that? Because most people prefer free to paid. I don't have the exact numbers but I would suspect less than 10% of Spotify's users pay for music. Why is Pandora so successful? Because it is free. Why is over the air radio still the most popular way to listen to music? Because it is free.

Now let's look at servces where the users provide all the value. Wikipedia, Craigslist, YouTube, Flickr, Instagram, Facebook, Twitter, Tumblr, WordPress, etc, etc. There is no value to any of these platforms if the users don't create the content. The users create the service, curate it, and make it what it is. I do not believe it makes sense to charge users to create the value. We've seen folks try this model. Typepad (where this blog is hosted) charges to host a blog. How well did they do? Phanfare charged to host photos. How well did they do? The list could go on and on but I don't want to focus on failed services.

When scale matters, when network effects matter, when your users are creating the content and the value, free is the business model of choice. And I don't think anything has changed to make that less true today. If anything, it is more true.

I understand the frustration of certain folks about the commercialization of Twitter, Facebook, Tumblr, and a host of other services. I understand the frustration over the increasing lock down of the APIs and the control these platforms are exercising on their ecosystems. I would encourage folks to compete with them to keep the web, the mobile web, and the Internet free and open. But I would not encourage those same folks to build paid services. I think their goals will be undermined by that choice.

#mobile#VC & Technology#Web/Tech

Fun Feature Friday: Clik This

I know its supposed to be Fun Friday, but this is going to be a Fun Feature Friday.

Yesterday our portfolio company Kik launched a new mobile app/platform called Clik.

Clik is really just one simple feature, implemented as a mobile platform that any developer will be able to leverage via a set of tools that are coming soon. And that feature is “point your smartphone at a browser that is showing a QR code and take control of the screen with your phone.” Sounds strange the first time you hear it, but give it a try and you’ll see what I mean. It’s really powerful.

There’s one more aspect of this feature which makes it even more fun. If your friends also have the Clik app on their phones (iPhone and Android to start), they can also take control of the screen and you can play games, play videos, play music, show pictures, etc with each other using your phones as controllers. It’s fun to imagine the new kinds of games that can be built with this platform.

So do me a favor, download Clik onto your smartphone, fire up a web browser, point it to clickthis.com, and then take over your computer with your phone. You’ll see the power of the platform right away.

If you are a developer and want to build something on top of the Clik platform, its really simple. No mobile development required. All web development and pretty easy to boot. If you are interested in learning more, email the Clik Platform team and they will be happy to explain how it works.

#Web/Tech

Dispersion and Entropy In Social Media

On Monday, I trained it up to New Haven to meet a Yale professor named Dina Mayzlin and talk to her class. I thoroughly enjoyed talking to Dina's class as it allowed me to work on some new material in a comfortable setting. But the talk Dina and I had over breakfast before class was even more thought provoking.

Dina got her PhD at MIT's Sloan School a decade ago, before she started teach at Yale. Her thesis looked at TV shows being talked about in the social media of that time, newsgroups, IRC, Usenet, etc, etc.

What she and her colleagues found out was that volume (number of mentions) was not a good predictor of popularity. Volume was more of a trailing indicator than a leading indicator.

But Disperson, or what Dina calls Entropy, turned out to be a very reliable leading indicator of popularlity of a TV show. The wider and broader the discussion of the TV show went within online social media, the more likely the show was to become popular.

By coincidence, the material I am working on in my public talks right now is about the fragmentation of social media. And so as I talked about fragmentation with Dina's Yale class, I started to weave her work, which was still rattling around in my brain, into my fragmentation thesis.

I am totally convinced that the world of social media is not consolidating around one "winner takes all" social platform. Instead, the world of social media is fragmenting into dozens of social platforms that are best of breed for a certain kind of social engagement. If you are building a social media strategy today, you absolutely need to address Facebook, YouTube, Twitter, and Tumblr. And you should also consider Foursquare, Instagram, Pinterest and Path. If you are in the music business, you need to consider SoundCloud. If you are in the book business, you need to consider Wattpad. If you are in the TV business, you need to conside GetGlue. And so on and so forth. Many of the companies I just mentioned, but not all of them sadly, are USV portfolio companies.

That's the thesis I spent thirty minutes on in front of the Yale class. But near the end of the talk to Dina's class, it occured to me that disperson/entropy can be gained by engaging on multiple social platforms. The number of likes on Facebook or tweets on Twitter is volume and is likely to be a trailing indicator of popularity. But if you track the essential social gestures across the fragmenting landscape of social platforms, likes, tweets, tumbls, checkins, pins, etc, then you get a measure of dispersion that may well be a leading indicator of popularity or the slope of the popularity curve.

That's the theory anyway. I'll leave the research to Dina and others. I hope someone will run the numbers to see if it works.

#Web/Tech

Sony Dash

A couple months ago, my friends at Sony sent me a new device called the Sony Dash. I brought it home and gave it to the Gotham Gal. She is using it as a bedside clock radio and not taking advantage of very many of its features. But my son expressed an interest in having one on his bedside table and so I got another.

He set it up to do four things; tell him what time it is, tell him what the weather is, give him his ESPN fix, and give him his Facebook fix. The clock rotates through sports news from ESPN, and photos and status updates from his friends on Facebook.

Here's the clock showing sports news from ESPN:

Josh's dash espn 

And here is the clock showing status updates from Facebook (sorry about the blurry photo):

Josh's dash 

In light of all the buzz about Flipboard, which I still can't connect to Facebook and Twitter, I think we are seeing an important new development. Social media clients are moving beyond the desktop, laptop, and smartphone onto new kinds of devices like the iPad and the Dash.

I was skeptical about the Dash when I first used it. It is a bit clunky to set up. The UI could use some serious simplification. But once you set it up, it's largely a "set it and forget it" kind of thing. And every time I walk into my son's room, I learn something about sports and his friends. It is actually an excellent user experience for a bedside clock, at least it is for my son.

You can connect the Dash to much more than ESPN and Facebook. It does Twitter, of course, and YouTube, and a ton of other web services too. It's a bit pricey for a bedside clock, but I expect the cost will come down pretty quickly for devices like this and we should be looking at sub $100 price points in the next year. If you are into gadgets and the web, this could be for you.

#Web/Tech

A Big Victory For User Generated Content

Yesterday, Judge Louis Stanton of the Southern District Court here in NYC issued his opinion in the long standing legal battle between YouTube and Viacom. It was the very threat of copyright litigation that forced YouTube to sell to Google, who had the resources to fight this fight.

This decision means that other user generated content services will not have to make the choice that YouTube had to make. Judge Stanton ruled that YouTube was operating within the framework of the Digital Millennium Copyright Act (DMCA) which says that web services that have infringing material in them must respond to take down notices but do not have to proactively weed out their services of all infringing material.

This is a huge victory for entrepreneurs and the web. I am ecstatic.

#VC & Technology

Vevo: First Thoughts

So Google and the music industry have teamed up to create Vevo, which aims to corral all music videos into a separate part of YouTube where they will be monetized by higher quality (and higher cost) video advertising.

Vevo launched last night and I spent some time on it this morning. At first look, I'm not sure I get this thing.

The first thing I did is search for Arctic Monkeys and I get a response that there are no results for that term.

Second thing I did is click on the link to Kid Cudi and watch the Pursuit Of Happiness video. But before I could watch that I had to sit through a 15 second AT&T pre-roll. That's not a great experience. I wonder if people will really sit through a 15 second pre-roll to watch a music video.

Then I went to YouTube and did a search for Kid Cudi Pursuit Of Happiness. The video I saw on Vevo is absolutely not on YouTube, but there are plenty of Pursuit Of Happiness videos there to watch including a really cool Steve Aoki remix.

Then I went to Google and did a search on Kid Cudi Pursuit Of Happiness and there are links to a bunch of videos on YouTube and MTV.com but no links to Vevo.

It's probably that Vevo is not completely rolled out yet but it would seem to me that for it to be successful, the Vevo videos will have to show up in YouTube and Google search results. And they don't right now.

It is absolutely true that for many, YouTube is their streaming music service. There is so much music on YouTube. You can get a result for most any song you look for. So it makes sense that the music industry is trying to get its arms around this new form of music discovery and listening.

But I wonder if cordoning off the "official" music videos into a separate site will achieve this goal. We'll see. I'm not that optimistic about this one.

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#My Music#Web/Tech

The Power Of Instant Approval

Back in the early days of web video, it wasn't clear who would win the competition for video upload to the web. There was YouTube, Vimeo, and the big dog was Google Video. I tried all of them. YouTube was by far and away the best experience.

Google Video required you to wait for days to see the video you uploaded. It was so annoying that I wrote this post exactly four years ago today (how's that for a coincidence?). This line sort of sums it up:

Posting stuff to the Internet has to be instantaneous.  What if wrote
this post on Tyeppad and it took me 10 minutes to see the result?  What
if I posted a photo to Flickr and it took a day to see it?

I was reminded of that post when I was reading Bijan's post on mobile apps this morning. Bijan makes the same point about developers and the iPhone app store:

Developers are getting extremely frustrated with the Apple App Store
(understatement). I’m hearing it can take developers 4 weeks to get an
update released. That’s dysfunctional.

The argument Apple makes about approving every app is similar to the argument Google made about approving every video. They want to make sure only quality stuff gets into their service. And I suppose it is even more important when we are talking about software running on your phone.

I'm not going to argue with the logic of those points of view, but I'll make this observation. Instant gratification is a very powerful force, for both consumers and developers. The web is full of success stories that have embraced the power of instant gratification and also full of failures that made people wait too long.

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#VC & Technology