Monday, March 25, 2002

Sonera and Telia Confirm Merger Talks. Finland's Sonera and Sweden's Telia confirmed Monday that they are discussing a possible merger of the two state-controlled telecommunications groups. By The Associated Press. [New York Times: Technology]
6:16:29 PM    comment   

Sun moves to join phones, Web services. The company is working to turn its Java software for cell phones and other gadgets into a tool to leapfrog Microsoft in Web services. [CNET News.com]
6:16:13 PM    comment   

Sun to Bring Web Services to Wireless Devices

For example, users with a RIM Blackberry two-way pager will be able to access a corporate order sales processing program to check the status of a customer order or back-ordered equipment and pricing via an application rather than a Web browser, Green said.
6:10:04 PM    comment   


Michael Fraase writes "When Elephants Dance" about the battle over copyrights.  Here is his solution:

"The solution is actually quite simple and requires only three steps:

  1. Revert the term of copyright to 14 years, immediately and retroactive to all existing works.
  2. Recognize moral rights in the works authors create, like every other civilized country on the planet. Make it immediate and retroactive to all existing works.
  3. Prohibit any corporation from owning a copyright. Corporations create nothing; they're consensual hallucinations and exist at our pleasure. I don't know about you, but I'm not much pleased any more."

These recommendations provide a solution for the problems on the production side of copyrights (and may be made a reality if the Supreme Court strikes down some of the last century's extensions to copyright terms), but what about the consumption side?  We should assume the following:

  1. All copy protection schemes will fail.
  2. Storage technology will soon make it possible for an individual to store a complete set of all movies, music, and books published over the last one hundred years. My estimate is that in twenty years personal storage technology will be at the 16 exabyte level (storage double in price performance every nine months).   The cross-over point where personal storage exceeds available copyrighted works is in ten years at the 500 terabyte level.
  3. USB/Firewire technology will soon (five years) enable people to share data at 3.2 Gigabytes per second.  This is a movie or 1,000 songs per second (granted, this doesn't account for hard-drive I/O which is doubling every 2 years). 

So, we should assume the technology will make sharing content extremely easy and impossible to protect against.  The release of unprotected works (according to the Fraase plan) into the public domain would certainly spawn a new industry focused on digitizing, organizing and managing available content.  However, it doesn't address how copyrighted works would generate revenue for authors and artists on copyrighted works (whatever the term of the copyright).   

Clearly, the pay-per-sip model of content consumption needs to change to an all-you-can-consume model that's paid for on a flat subscription basis.  The value proposition is assured quality, speed, reliability, presentation, organizing tools, and service.   Fees to specific artists could be paid on a per use basis behind the scenes.  This would force a consolidation in the entertainment industry in order to amass the largest libraries of both copyrighted and uncopyrighted content. 

What would be the subscription cost?  Check my math and figures here (this is a back of the envelope calculation in the spirit of fun), but the total world-wide revenue of the US movie (~$40b), music (~$15b), and Book Publishing ($25b) industries is ~$80b.  On a per-household basis that is $60 a month (assume US has 110 m households) -- or $100 a month if only 65 m households pick it up.  So, it is possible to build a system, within the US alone that replicates all the revenue generated by the industries at risk with an all-you-can subscription model.  Granted, this doesn't include cable, TV, magazine, and newspaper publishers (that complicates the picture), but it points to a possible solution.  Also, it's clear that most people would still like to read bound books (but new personal publishing tech could make that possible at a low cost). [John Robb's Radio Weblog] [OMJ: My Organization]
5:09:25 PM    comment   


Hmm.  What is my attention saturation point in terms of media usage and how would that relate to an all-you-can-eat media system?  Let's try a fun thought experiment (this is an incredible waste of time, but what the hell).  Say I live alone (and not with 5 other people).  Let's also assume I am at the saturation point in regards to watching, reading, etc. and if the all the content in the world were free, my behavior wouldn't change one iota.

Here is what I consume in an average month:

  • I watch 10 movies a month.
  • I watch 8 hours of TV a week or 32 hours a month.
  • I read 50 content related web pages a day or 1,500 pages a month.
  • I read 1 book per month.
  • I read 2 magazines per month (I get all the rest of my news/magazine fix online)
  • I listen to 30 songs a week or 120 a month.
  • I don't read newspapers offline anymore.

OK, so I might not be the average consumer but here is what I pay per month to enjoy this:  $40 a month for Netflix, $20 a month for cable, $3 a month for magazines, $40 a month for DSL, and ~$7 a month for a paperback book.  A total of $110 a month.

Let's assume there was a service that provided and metered all content, including registered web sites.   It costs $100 a month and lets me consume as much as I want.  If I paid $100 a month for this full featured online content system (that included TV and Internet sites) and $40 a month for connectivity, here is some wild speculation on how it could be paid out to artists and authors.

  • $2 a view for each movie.  $20 total.
  • $0.10 a view for each TV program with commercials.    ~$3 total.
  • $2 for the book (online delivery only, I print it out locally). 
  • $1 for each magazine.  $2 total (online delivery only, I print it out locally).
  • $0.05 a song.  $6 total. 
  • $0.01 for each web page.  $15

That is a total of $48.  The distributor of this service would generate a whopping $52 a month from a household like mine.  If I included the rest of my family in this picture the pay-out would change (it would probably put us near the high-end of normal consumption curve too).  Including my family, my household's consumption would double the number of movies watched, triple the number of TV programs, add one book, one magazine, double the number of songs, and add 500 web pages to the monthly total.  The pay-out under this scenario would be $88.  Still a profit of $12 for the distributor. 

The best part of a system like this is that unkown artists and authors could get paid if they register with the system (add an MP3, an MPEG-4 movie, or a weblog).  Soaking up eyeballs is the same no matter who does it.  Of course, my weblog would only be worth $6-$7 a day right now if it was registered under this system.  But hell, that is a lot better than $0 and would be more than enough to pay my household's content subscriptions and my connectivity -- and still leave enough for me to buy coffee from Dunkin' Dounuts every morning.  This was fun.  Thanks for reading. [John Robb's Radio Weblog] [OMJ: My Organization]
5:07:35 PM    comment   


NYT.  Tom Rogers at Primedia still clings to digital dreams.  Note:  Primedia acquired About.com    I personally don't use About.com but it gets huge traffic (#5 on the Internet).  The topic sites look like bad weblogs.

>>>About, as a result, may break even on a cash-flow basis in the first quarter, according to the company, but revenue will be less than $50 million a year. Total new-media revenue is expected to be 8 percent to 12 percent of the $1.7 billion in sales Primedia expects this year.

But it is hard to see how that gusher of clicks (from About.com) comes with any viable business model that justifies the cost of the deal, a stock transaction worth $690 million when it was announced in October 2000 but $428 million by the time it closed the next February. Mr. Rogers says the company got crucial digital capacity without laying out cash it did not have and acquired $109 million in cash at the same time. <<<

The wild part about this is that the technology of About.com could be built better today for less than a hundred thousand $$ using Radio.  The key is decentralized publishing. [John Robb's Radio Weblog]
5:06:39 PM    comment   


Forbes ASAP: Back In Touch. Q&A with John Seely Brown. Email plays quite different roles than it did five years ago. Email has started to seriously change hierarchy. It keeps you more aware of the edge of what's happening in your company. You can sense the heartbeat of the organization when you skim the messages. [Tomalak's Realm]
5:06:16 PM    comment   

Microsoft and the Mythology of Anti-trust. The biggest question about anti-trust law is whether there really is any such thing. There are anti-trust theories and anti-trust rhetoric, as well as judicial pronouncements on anti-trust. But there is very little that could be called law in the full sense of rules known in advance and applied consistently. [OMJ: My Organization]
5:05:54 PM    comment   

NY Times: "Over the last few years, Internet job sites, especially Monster, have eaten away at newspapers' help-wanted ads, which inch for inch have been their single most profitable product."  [Scripting News] [OMJ: My Organization]
5:05:37 PM    comment   

Motorola Unveils Color Java Phone. Aimed at games, streaming video [allNetDevices Wireless News]
5:05:12 PM    comment   

Report: Palm, Handspring Communicators to Fail. Says they can't match competitors' muscle [allNetDevices Wireless News]
5:04:58 PM    comment   

Shell Plans to Triple Its Stake in China. The Royal Dutch/Shell Group, Europe's biggest publicly traded oil company, plans to triple its investment in China to more than $5 billion. By Bloomberg News. [New York Times: Business]
5:04:34 PM    comment   

In Classic Math Riddle, DNA Gives a Satisfying Answer. Scientists make strides with the DNA computer, theoretically capable of performing trillions of calculations in seconds. By George Johnson. [New York Times: Science]
5:03:38 PM    comment   

Kamen: We Need More Geeks Now. The inventor of the Segway Human Transporter holds his annual 'bot competition for teen tinkerers, wondering why there aren't more participants. Michelle Delio reports from New York. [Wired News]
5:02:52 PM    comment   

Screen shot of News.Com article about IBM with an IBM ad. The poetic explanation of "web services." Never mind that it's impossible for the BigCo's to actually do what was promised by web services, since the core idea is to turn the Internet into a scripting environment where no one knows what tools you use (and you can switch at will). The Bigs roll out their own standards to battle the perception that the other guy is leading. None of them are leading. If you read the stories with that in mind, you'll find the truth. It's all lies.  [Scripting News]
5:02:14 PM    comment   

News.Com: "Sun Microsystems, Oracle, IBM, and Hewlett-Packard are expected to announce new software or tools to improve or fill holes in their product family, and battle the perception that Microsoft is leading the way in Web services, a method for building software that lets companies with different computing systems to interact and conduct transactions."  [Scripting News]
5:01:49 PM    comment   

Bell Labs sets distance record for optical transmissions. 2.56Tbps over 4,000km [The Register]
4:58:54 PM    comment   

Orange to increase SMS charges. Monthly subscribers feel the squeeze of 10p messages [The Register]
4:58:18 PM    comment   

IBM secures e-businesses [IDG InfoWorld]
4:56:00 PM    comment   

Sharp's Linux PDA debuts in US [IDG InfoWorld]
4:55:40 PM    comment