Sunday, March 14, 2010

The Latest from TechCrunch

The Latest from TechCrunch

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An Ecosystem Is Born: Animoto Opens Up API

Posted: 13 Mar 2010 05:12 AM PST

We’re big fans of Animoto, a website that lets you easily create photo and video slideshows matched to music. The site is constantly innovating its nifty product, most recently adding an iPhone app and the ability to incorporate video. For those not familiar with Animoto, the startup basically allows you to take your images, video and your music and mash them together to create cool videos. What makes the videos cool is the company’s technology that renders the pictures so they’re in-step with the music you’ve chosen, adding nice transition effects. This morning, Animoto is opening up its API, allowing partners to now incorporate Animoto’s compelling technologies into independent sites

The first API that being rolled out for the Animoto Partner Platform is Animoto Quickstart.  The API essentially allows any website to tap into Animoto’s video creation flow.  The aim is to make Animoto one click away from any website that has photos, videos or music.  Quickstart allows websites to connect their own content, including photos, video clips and music to Animoto as the first step in creating an Animoto video. So partners can integrate Animoto’s video slideshow creation tool into their sites. And the startup promises that Quickstart takes only hours to a partner to set up on a site.

For example, SmugMug, a photo sharing site that caters to professional photographers, uses Quickstart so users can ‘pass’ their photo albums into Animoto’s video creation flow. So the user now has the option of making a slideshow from their hosted photos and simply needs to pick a song to complete their Animoto video. Once a user clicks to make the slideshow, he or she will be taken to Animoto’s site, where their video and photos will automatically be placed into Animoto’s site.

Another use case is a promotion Animoto is launching with iconic musician John Bon Jovi where fans of Bon Jovi can go to Bonjovi’s site to create an Animoto music video with Bon Jovi’s latest single and footage from his music video.  Pepsi also used the Quickstart API to help users create video slideshows in a contest involving its ShareTheJoy campaign.

With the launch of this API at SXSW, Animoto is partnering with music publication SPIN magazine to allow fans to promote their favorite South by Southwest bands for a chance to win prizes.
From now until March 31, 2010, fans can create and submit Animoto videos featuring songs from top South by Southwest bands for a chance to win $1000 and a spot on Spin.com, and other prizes.
 
Currently Animoto has 1.4 million users and makes money off of its paid subscriptions. On its site its free to create 30 second videos, but you need to pay $3 per video to make an lengthier slideshow. The site sells a year long subscription to users for $30. A large part of Animoto’s subscription business is composed of professional videographers and photographers who pay $250 per year to create their own branded videos that they can download, and burn to a CD (and the slideshow doesn’t bear the “Animoto” logo). Animoto’s CEO Brad Jefferson tells me that 10 percent of users, so 140,000 people, are have paid for at least one product on the site.The company is already cash-flow positive, which isn’t bad for a startup that’s less than three years old.

In terms of monetizing the API, Animoto isn’t charging any of its partners. In fact, it’s actually paying its partners in terms of affiliate fees. So if any partners lead new users to the site who end up buying a subscription, Animoto will give the partner a 40 percent cut of the first year’s consumer subscription fee or $50 of the first years pro subscription fee.

The Quickstart API seems to be the first of a few sets of APIs that will extend Animoto’s technology onto the other sites. It’s a smart move. While many photo sharing sites have the ability to make slideshows, the technology is not nearly as fun and easy to use as Animoto’s. And Animoto is undoubtedly a compelling tool for an brand marketer to use for a campaign. Frankly, the possibilities are endless because Animoto is such an easy tool to use.



MySpace’s Mid Level Management Structure Is Crumbling

Posted: 12 Mar 2010 09:32 PM PST

The problem with all of these people who are walking out the door at MySpace isn’t so much the number of them, because MySpace is trying to replace them by hiring more people. It’s the fact that the best people are leaving, and taking a lot of the knowledge base with them.

Three star senior employees left to go to cross-town startup Gravity, we reported earlier this week. And tonight we’ve heard that Jeff Webber, the engineering director that oversees the email, instant messaging and other “communications” platforms for MySpace, resigned earlier this week as well to join a startup. He’s been at MySpace for nearly three years and was one of the star engineers and leaders, says one source.

Other recent departures – VP and General Manager of Mobile John Faith, SVP User Experience Katie Geminder and most of her team. And of course CEO Owen Van Natta. And lots more as well, only a few of which we’ve reported.

The company has no direction, says everyone we talk to at MySpace except the top execs, and internal politics are the only thing that seem to matter. Ambitious new projects like Remaking MySpace have been thrown away just because the wrong exec supported it. Anyone who actually wants to build products has left or is looking for a new job, say many, many sources.

If you’re a MySpace employee and feel differently, please contact us anonymously. Because right now all we see is a ton of fluff and absurdity coming from the top, and massive morale problems at the middle management ranks.

The title of this post is actually a recent quote from a (now former) MySpace employee, and it seems to be accurate. They say a company has to hit rock bottom before it can even think about rebuilding into something new. If that’s the case, the time to start rebuilding is, apparently, right about now. But in our opinion MySpace has no chance at all until it is free of the News Corp. death grip.



E-Book Readers: Will Secondary Features Win Consumers’ Hearts Or Leave Them Cold?

Posted: 12 Mar 2010 06:47 PM PST


How many e-book readers do you think are out there right now for you to choose from? If you did a little digging, I bet you’d find 50 or so. Maybe 10 really worth checking out. But right now is a bit of a weird period in e-reader history. The Kindle cemented e-readers in the consumer headspace, catapulting them from weirdo alternative technology to mainstream gadget. That’s what the iPad threatens to do with tablets — we’ll see about that. But the Kindle and the iPad are two important data points in the current e-reader wars; the question, upon the answer of which depends the success of many a device, is whether “bonus” features like second screens and weird form factors in e-readers will be enough to differentiate them from the high-profile devices pressing them on both flanks?

See, the vast majority of e-readers were designed as a response to the Kindle, not to tablet computers, which may or may not obsolete e-readers altogether. It’s a bad situation: the whole time you’re improving your competitor’s product, someone else is skipping your entire device class on the grounds that it will be made ridiculous by their awesome gadget. Some of the special features developed to combat the Kindle will stay, and some won’t live to see their own first birthday.

Continue reading…



MyBrandz: Finally, You Can Find People Who Love Nike, Apple, And Ferrari As Much As You Do

Posted: 12 Mar 2010 03:50 PM PST

Ever wanted to tell the world how much you love BMW, Coca-Cola, and any of the other biggest brand names on Earth? Here’s your chance: MyBrandz is a new community site that looks to let people talk about their favorite brands with other users, allowing them to share their favorite products, photos, and more. You may remember MyBrandz as the company that convinced a guy to tattoo the YouTube logo to his arm a few months back.

My initial reaction to the site was that it was a bit bizarre — is there really an audience of people who want to talk about how much they love these multibillion dollar corporations (many of which couldn’t give a hoot about their customers)? And then I remembered the throngs of die-hard Apple fans that police internet forums, and the Ferrari store in downtown San Francisco that sells $200+ leather jackets emblazoned with the classic logo. Yeah, there’s definitely an audience for this.

Once you’ve browsed to the fan page of the company you like, you can share notes, photos, video, and links with like-minded fans. To help boost engagement, the site is currently running a promotion that invites users to ‘own their brand’ — the top user for a given brand site will win a free stock certificate. The site is happy to point out that “a Google share is worth more than $600 and an Apple share over $200″, but doesn’t go out of its way to say that the top user on Playboy’s fan page can expect a windfall of $3.58.

The site has some nice touches, like a scrolling wall of logos to help you quickly build out a roster of your favorite brands, and a graph that plots the ranking of brands based on their market value and popularity. But, as with most social sites, it’s going to face a chicken-and-egg problem. And many of these brands have already spawned their own communities and forums — it’s going to be hard to get those to migrate to MyBrandz.

Brand fans may also want to check out Logorama, the brand-studded animated short that just won an Oscar.



South Asian Mobile Social Network Mig33 Sending Twice As Many Messages A Day As Twitter

Posted: 12 Mar 2010 02:02 PM PST

Mobile social networks have tremendous potential to flourish in developing countries where mobile phone usage trumps internet connectivity. SMS based social networks like SMSGupshup have gained considerable traction in Asia because of this. For example, in India, there is currently a 10 to 1 mobile-to-PC ratio. Mig33, a mobile social network that involves VoIP calls, instant messaging, e-mail, text messaging, and picture sharing, has accumulated 35 million registered users of its service and is growing fast in South Asian markets such as Indonesia and India. Assuming 3 to 10 percent are active on a monthly basis, that would be 1 million to 3.5 million active users.

Mig33’s users are now sending over 1 million virtual gifts a month, and posting approximately 100 million messages a day on its network, or 1,000 messages every second. Twitter, in comparison, just passed 50 million a day. Mig33 is eying the virtual gift economy as a revenue maker because of the model’s success for China’s similar application, Tencent QQ. According to Mig33, the Chinese mobile social application has nearly 8% of its over 500 million users in China paying about $2 per month in virtual gifts and goods. Mig33 is hoping to emulate that model in markets like Indonesia, India, South Africa, Bangladesh, Kenya, and Bosnia.

Mig33 is available worldwide and optimized for more than 2,000 different mobile devices. The startup has steadily added to its app by integrating social games, user-owned groups, virtual gifting and, most recently, avatars. Avatars are actually a source of revenue for mig33, by charging users to customize and enhance their avatars. Mig33 is looking to expand the virtual economy. In fact, the startup says that its revenue stream has grown to over $1 per user per month in countries such as Indonesia and India.

Founded in 2005, mig33 is backed by Accel Partners, Redpoint Ventures and DCM and has raised a total of $23.5 million.



It’s Hard To Watch The Newsosaurs Turn A Blind Eye To Their Own Extinction

Posted: 12 Mar 2010 11:47 AM PST

Sometimes it is obvious where the world is headed, but some people and industries become frozen in place and time. They are like the duckbilled dinosaurs happily munching on the still-abundant plants around them when the meteor strikes instead of the small furry mammals underfoot who take cover every day by natural habit. In the print newspaper industry, it’s the same story. Everyone wants to wall off the Web and keep grazing on declining ad revenues.

A week ago, I wrote a post based on a conversation I had with Silicon Valley entrepreneur and investor Marc Andreessen in which he made the case that print media companies would be better off shutting down their print operations now (“Burn the boats”) and move forward unencumbered into the digital age, no matter how painful that may be. That suggestion hit a deep nerve, and continues to do so.

Just yesterday, Allan Mutter, who writes the blog Reflections of a Newsosaur, took exception to Andreessen’s advice. By his estimate, in 2009:

Print-driven newspaper revenues still are running at better than $30 billion a year. It doesn't take a certifiable Silicon Valley genius to see that no business can walk away from some 90% of its revenue base without imploding.

Mutter’s indignation is typical of the response to the article, even among enlightened newsosaurs. But that is exactly what Andreessen is saying. As I noted in my original post, he is quite aware that “at risk is 80% of revenues and headcount” (or 90%, if you take Mutter’s numbers).

Yes, the Internet media business is much less lucrative than the print side, and may never replace it in terms of the revenues it generates. But Andreessen’s point is that the meteor is on its way and the sooner that media companies start looking for cover, the more likely they are to survive.

He is not trying to be an alarmist. He’s just a realist. In the technology industry, similar disruptions happen all the time. The companies that survive are the ones that adapt and jump onto the next wave of technology before the one they are on finishes cresting. So the real question is one of timing. How long will it take that $30 billion print business to go to $20 billion, $10 billion, or zero? No doubt, it will take years, probably decades. But how long do print media companies wait before they leave their old business behind?

The people who read print newspapers and magazines are getting older and older, while advertisers always chase the young and impressionable. That audience is already on the Web. And they are no longer satisfied with getting all of their news from one or two trusted sources. They get their news from all over the place: newspaper sites, TV news sites, blogs, Twitter, Facebook. More and more, the news is coming to them through their friends and the various streams they consume. The old days of cross-subsidizing political news with ads from the Travel and Auto sections are over.

The longer media companies wait, the bigger disadvantage they will have when they cross over to the other side and find a whole new host of competitors who never had any print legacy businesses to protect. Those competitors right now are blogs and online news hubs who are still furry little rodents in the underbrush, but who won’t stay little forever. The sooner print media companies cross over, the sooner they can be on pure offense. Their online strategies and business models won’t be crippled by any allegiance, or need to protect, to the old print business. If they wait until their online revenues become 25 or 50 percent before they fully commit, it will be too late.

But that is probably what will happen. Media companies are still surrounded by $30 billion worth of leaves that look mighty good.

Photo of duckbilled dinosaur fossil by Ed Schipul .



Brightkite’s Sneaky Plan To Get Regular Users Into Location: Group Text

Posted: 12 Mar 2010 11:41 AM PST

Brightkite is tricky. Tricky and smart.

While larger than most of their location-based rivals with over 2 million users, they know that in the past year they’ve lost some momentum to the newer check-in services like Foursquare and Gowalla. So they’re trying to do something unique to swing momentum back in their favor.

Today, at the SXSW festival in Austin, Texas, Brightkite is unveiling its new Group Text service. It’s both a feature on the website and a standalone application in the App Store (it should be available shortly). With it, Brightkite is latching onto one of the most popular and fast growing categories in mobile applications: group texting. Unlike regular text messaging, this type of app allows you to message many people all at once (and go back and forth). And better, in a world where cell providers are still managing to rip-off users with their text message bundles or $0.15 rate per-text, group texting is absolutely free.

Services such as textPlus have already made the functionality very popular on the iPhone, and now Brightkite hopes that will translate into converting different types of users over to its core location-based service. The reason is that built-in to the Brightkite Group Text app is the core Brightkite functionality itself. While it’s a bit buried to the left hand side of the menu, you can both check-in at venues, and get check-in updates from other users in the app.

It’s a smart play. As other location services such as MyTown have proven, there’s a market to get users outside of the traditional early-adopter crowd into location by doing something novel (in their case, a straight-up Monopoly-type game). Group texting users seem to be rabid about the software, so why not give them a little location-based bonus to play around with if they desire?

At the same time, this app provides a nice compliment to the Brightkite service itself. With it, users get another social outlet to communicate with, sending messages or pictures, and having them threaded both in the app and online. And yes, it still works with traditional SMS messaging, as Brightkite was lucky enough to be granted a texting shortcode (41414) and it can work with these threaded conversations. For example:

By adding three digits to the end of the code, each person can now have 100 simultaneous threaded text conversations running on their phone.
41414-001 = conversation 1
41414-002 = conversation 2

And thanks to the SMS support, you can contact anyone in your address book, not just those using the app.

The service is now live on Brightkite’s site, and look for it later today in the App Store.



CauseWorld’s New App Melds The Check-In With The Check-Out

Posted: 12 Mar 2010 10:30 AM PST

Last night, we wrote about a CauseWorld teaming up with TechCrunch to provide double karma points during the SXSW festival starting today in Austin, Texas. These points, obtained through checking-in at various locations, can be used to donate to charities through big brands that support the app. It’s a great feature, and we hope you’ll use it in Austin. What we didn’t talk too much about is the app itself that enables it, CauseWorld, which just released a new version of its iPhone app in the App Store.

We first covered the app back in December, but now it has been significantly upgraded. One of the core ideas behind the app has always been the intersection of the mobile and physical world (something I’ve thought a lot about as well). A new feature bridges the gap a bit more as you can now scan barcodes on individual items with your iPhone to earn extra karma points. Proctor & Gamble are the ones sponsoring these points on different products they make. It’s a good idea, because even if you choose not to buy the item, it forces you to pick it up and look at it a bit.

This feature points to the bigger idea that CauseWorld parent Shopkick is thinking about when it is ready to launch its flagship product (CauseWorld was born as just a trial site of an idea, but quickly ballooned into an app with over 300,000 downloads). It’s the idea that the cellphone is the only interactive tool you carry in a non interactive setting at all times. So why not use it to make the physical retail space more interactive, Shopkick CEO Cyriac Roeding reasons.

Another huge addition to the CauseWorld app is a social layer. Previously, the app was all about what you did. But now you can hook it up to Facebook (which will earn you bonus karma points) and share the progress and donations you’re making with your friends. On top of this there are new features such as gifting which will help the app virally spread through social networks.

This social layer also allows for a leaderboard to be created showing which of your friend have donated the most karma points. Sometimes social pressure is the best way to get people motivated.

Again, CauseWorld stems from trying out an idea to see what would work with the larger Shopkick plan when that eventually launches. But the response to it has shown Roeding enough that he believes ”the next big thing after the check-in is the check-out.” Given the big brands they’re signing up to support CauseWorld, he just might be right.

You can find the new CauseWorld 1.5 in the App Store here. It’s a free download.



FunMail’s FunTweet Visualizes Twitter Streams With Pretty Pictures

Posted: 12 Mar 2010 09:58 AM PST

We’ve written about FunMobility’s nifty picture messaging app for the iPhone and Android, called FunMail, that allows users to blasts their text into the application, which then breaks down whatever the user typed for context and places fun graphics with your original text. Now, FunMobility has caught the Twitter bug and is launching FunTweet, a web service which turns any Twitter stream into visual messages that are related to the text.

Similar to FunMail, FunTweet will turn text in Tweets into a matching image. On FunTweet’s site, you sign in with your Twitter credentials and the service will draw your Tweets from your Twitter homepage feed and display each tweet as a FunMail image on FunTweet. Users can also enter a @UserName, a HashTag or a Subject as well to the images. If you like the image FunTweet picked, you can publish the Tweet to your Twitter account. If you don't like the image, click "Try Again" and you can choose from other images. For example, if you tweet about writing a story or reading a book, then FunTweet will come up with images that match “story” – a book, a magazine, a typewriter, or a pen.

FunMobility is hoping FunTweet can be a display tool for parties, conferences and other gatherings where live stream messages may be projected. I find myself wishing I could include my own pictures into my FunTweets so I’m hoping the site will soon include that functionality.

FunMail for the iPhone has gained a bit of traction in a short amount of time with 100,000 downloads since its launch in November. So FunTweet could gain a loyal following a fun tool to spice up Tweets. TwitSig and SayTweet also allow you to make images from Tweets.



Pentagon Partially Blames The Internet For That Christmas Underwear Bomber

Posted: 12 Mar 2010 09:41 AM PST

This is the lede, verbatim, from a story that appeared in The Hill yesterday: "The Internet allowed extremists to contact, recruit, train and equip the suspect responsible for the attempted Flight 253 bombing on Christmas Day 'within weeks,' a top Pentagon official told lawmakers Wednesday." What's the implication, that because someone used the Internet to plan something, something bad, we should get rid of it? Fine by me, believe me.


Sonos Confirms $25 Million Investment From Index Ventures

Posted: 12 Mar 2010 09:31 AM PST

Sonos has now confirmed the Index Ventures investment we reported two days ago. The company has taken an additional $25 million in capital from Index, raising the total raised by the company to $65 million. And Index Ventures Partner Mike Volpi, a former CIsco executive, has joined their board of directors.

The funds will be used for growth equity, says the company, which signals that they are past the proof of product stage (well past, in this case) and will use the funds to speed market penetration.

From our original post:

Volpi will bring real expertise to the Sonos board. As recently as 2007 he ran an $11 billion routing and access products busines for Cisco. He clearly knows how to sell products at scale.

Sonos has been around since 2003 and has raised some $40 million from private angel investors and BV Capital. Until last year the company sold very high end music products that users loved passionately, but the mutli-thousand dollar price point for a complete system made mainstream penetration difficult.

But in 2009 Sonos began selling a new product, the S5 music system, that users control via their iPhone. The S5 is just $400 and has driven “massive growth” says the company.

Like Flip last year, Sonos likely had a choice between selling now or raising new money for major expansion. Flip sold to Cisco. Sonos, it seems, is taking more money, but adding an ex-Cisco exec as well. Perhaps they’ll get their cake and eat it, too.



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