Evolve Or Die: The Future Of Music, TV, Games And Publishing

TechCrunch Disrupt kicked off this morning, with interviews with Kleiner Perkins’ John Doerr and DST’s Yuri Milner. Next up, we’re discussing the future of music, TV, games and publishing. Michael Wolf, Founder and Managing Director, Activate is leading the discussion with Sarah Chubb, President, Conde Nast Digital; Fred Davis, Founding Partner, CODE Advisors; John Hagel, Co-Chairman, Center for the Edge, Deloitte; and Avner Ronen, CEO, Boxee.

Wolf highlighted the newly announced Google TV as being disruptive to the media space. Ronen’s Boxee, which also streams media from your computer to a TV, says that he thinks the Android-based platform could be complimentary to his application.

The iPad is also a disruptive application for media, but companies are quick to show that they are evolving their content with the new device and seeing positive results Epicurious is seeing 75 percent of users on the iPad, with a million downloads of the new iPad app, says Chubbs. “We see the iPad as an additive experience,” she says, adding that GQ and Vanity Fair have also seen considerable traffic on their apps. Media and entertainment generally is moving towards “an access model vs. an ownership model.”

Wolf also addressed the issue of music and the evolution of the way music is being consumed on the web. Davis expressed his strong concern for piracy on the web, including music and movies. See our paraphrased notes of the conversation below:

Wolf: Media and technology is reshaping content, from the iPad to Google TV to Avatar.
Ronen:Wolf: Does Google TV change Boxee’s outlook or enhance it?
Ronen: We’re not sure yet. Bottom line if Android finds its way into the living room, that’s great. It could be complimentary but it could be dangerous if they start to do what we do. In most cases, the TV screen is not a great browsing device. Also, the TV is a social space, you watch it with friends and family Browsing is more of a personal action.
Wolf: Sarah, what do you see is happening with user engagement?
Chubb: With the ipad, what we’re seeing is incredibly exciting. Epicurious is on the iPad and we’re seeing browsing of the site, which gets 7 million women a month, is seeing 75 percent of users on the iPad. A million downloads of the iPad app.
Chubb: We think the iPad is an additive experience. On GQ we’ve had 250,000 sessions since iPad launched. 65 percent were coming from the iPad And Vanity Fair, we’ve seen 10,000 sessions, 90 percent on the iPad.
Wolf: Fred, you’ve represented digital companies and artists, What do entertainment companies think in terms of the role of these services?
Davis: Music is not about owning, it’s about accessing. Spotify seems to have unlocked a key to accessing music. Artists and Labels and entertainment companies need to migrate, similar to Netflix with DVDs and movies.
Wolf: John, how do you look at this?
Hagel: Companies have assets to deploy in terms of relationships and creative talent. Changes are so fundamental, its about basic assumptions about what is required for success. Key transitions for media companies is that they have to move from product business mindsets. Who has the power-the creatives or the business people in an organization? How do measure profitability, via product or audience? Most media companies still measure via audience. That’s the shift that makes this essential.
Davis: A lot of media companies never had a training to engage with third party developers.
Wolf: When you think about social conversations, a lot of them are taking place on Facebook and Twitter. How do media companies take advantage of this?
Ronen: It gives them free traffic. I think that the transition towards apps, may be harmful. It may cause the conversation to stay on the app versus going to the content owners.
Chubb: Moving from a product centric point of view to a customer centric is important. We are in the audience business. Social is critical to that-the conversation that is going on is more important than your point of view.
Davis: A movie comes out, now everyone is Tweeting about it. Its changing marketing and ad campaigns.
Ronen: the same goes for TV shows.
Hagel: There is a concern about who is the orchestrator of the social relationships,
Chubb: Who owns the conversation on social media within a conversation, is it pr marketing? if you try to control the conversation, it may backfire.
Wolf: Where do you see the crossover in terms of profitability?
Hagel: There are three different type of businesses-product, infrastructure and customer. The world is more fragmented. Its a challenge, how do you cope with this?
Chubb: You have profitable businesses trying to make that transition, as a large media company, we have to be ruthless about past feelings. We have to be much faster, we’ve learned so much from Wired, Epicurious, Reddit. You’ll see more things from us that are faster turnaround.

Davis: Piracy needs to be part of the conversation. Why it’s not okay to go steal a DVD off of a shelf at Walmart but it is OK to download a movie off the internet. The cultural mindset has changed about paying for content.
Ronen: The psychology of consumers is different now.
Davis: The ease of stealing shouldn’t make a difference.
Ronen: I don’t know if there is a full solution to this – I think there will be some people who always will steal.
Hagel: Part of the answer is to expand content beyond the platform, like virtual goods in gaming
Wolf: Do you believe the existence of pirated content help the entertainment sector?
Davis: I’m not sure piracy helps. I think it helps the conversation.

Wolf: How will media companies profit from this?
Chubb: People are willing to pay for things in mobile-the trick is making it an attractive offering.
Davis: Portability makes content more valuable.
Wolf: How will media business change with gaming?
Ronen: I think the intro of game mechanics and interactions around content will change the way the content is formed and engagement. The merging of content with games is exciting. I think most valuable franchises will be built on combination of games and content.
Davis: Music-oriented games have huge potential.
Wolf: What will happen with the editorial point of view vs. the wisdom of crowds?
Chubb: There’s a need for big media companies to embrace other kinds of talent and thinking, such as Reddit. It’s a different way
Wolf: What kind of deals are going to be taking place? Are these going to be big companies buying small ones or big companies getting together.

Davis: There will be two strategies. How do we monetize content in new ways?
Wolf: This conversation will be an important part of media. I want to thank the panelists.

Watch live streaming video from disrupt at livestream.com


Yahoo Finds A New Lover In Match.com, Dumps Personals

Match.com and Yahoo are going steady now. Yahoo Personals is out. This morning, Yahoo announced that Match.com will become the exclusive online dating site on Yahoo. Yahoo’s current online dating site, Personals, will be folded into a new co-branded site called “Match.com on Yahoo.” Match already powers Yahoo Personals in a number of European markets.

Yahoo Personals users will be encouraged to migrate to Match.com on Yahoo and given the opportunity to seamlessly migrate their Yahoo Personals accounts over to the new site. Match.com on Yahoo will offer users mobile access, daily personalized matches and more advanced search tools.

Match was rumored to be interested in acquiring Yahoo Personals, but this partnership makes sense considering Yahoo can retain part of the brand. And perhaps gain advertising dollars.

Match just bought online dating site SinglesNet, and scooped up highly-targeted dating site network People Media last year for a whopping $80 million.

Information provided by CrunchBase


Twitter To Prohibit Any Third Party To Advertise In-Stream

Twitter just put up a blog post talking up its platform approach and long-term strategy. In that same post, however, the company has made some decisions that are sure to irk a couple of third-party developers and startups.

Here’s the big news: aside from (its own) Promoted Tweets, Twitter says it will not be allowing any third party to inject paid tweets into a timeline on any service that leverages the Twitter API. The changes will be reflected in an updated set of Terms & Conditions, which is due to be released ‘shortly’.

Update: here it is (details below)

This is not so good news for Twitter-focused advertising startups like Ad.ly and Twad.ly (and others). It also definitely perked the ears of TweetUp, who had just launched its live beta at TechCrunch Disrupt.

You can see their initial reaction to the news below.

Here are the reasons Twitter says it decided not to allow third-parties to advertise in the stream:

First, third party ad networks are not necessarily looking to preserve the unique user experience Twitter has created. They may optimize for either market share or short-term revenue at the expense of the long-term health of the Twitter platform. For example, a third party ad network may seek to maximize ad impressions and click through rates even if it leads to a net decrease in Twitter use due to user dissatisfaction.

Secondly, the basis for building a lasting advertising network that benefits users should be innovation, not near-term monetization. Twitter is uniquely dependent on and responsible for the long-term health and value of the platform. Accordingly, a necessary focus of Promoted Tweets is to explore ways to create value for our users. Third party ad networks may be optimized for near-term monetization at the expense of innovating or creating the best user experience. We believe it is our responsibility to encourage creative product development and to curb practices that compromise innovation.

It is important to keep in mind that Twitter bears all the costs of maintaining the network, protecting the Tweet stream against spam, supporting user requests, and scaling the service. Indeed, Twitter will bear many of the support costs associated with any third-party paid Tweets, as Twitter receives support emails related to anything a user sees in a tweet stream. The third-party bears few of these costs by comparison.

Twitter adds that when its new Annotations feature launches, there are going to be many new business opportunities on the Twitter platform in addition to those currently available. The three guiding principles the company touts it abides by are:

1) no control or ownership over what users tweet

2) other companies have enough opportunities to sell ads, build vertical apps, offer analytics, etc. aside from injecting paid tweets into the stream. Twitter explicitly says it’s perfectly fine with display ads and other mobile advertisements around the timelines of Twitter clients.

3) the company says it doesn’t always need to participate in the ways in which other companies monetize the network

The company does recognize that for a few companies, the new Terms of Service prohibit activities in which some have invested resources. It will be interesting to see how those companies will respond to the news.

TweetUp CEO Bill Gross, for one, says they never planned to advertise in-stream anyway, so this won’t affect them as much as you would think – and we thought – at first.

Nevertheless, it shows that certain decisions Twitter makes along the way as it moves forward with its platform and how to monetize it most efficiently should keep startups that base their entire business model on the Twitter platform on high alert.

Update: here is the relevant part in the updated T&C:

IV. COMMERCIAL USE

It is our goal to provide you, our ecosystem partner, with a policy that is clear and transparent about what you can do to monetize your Service. This is best summed up in two principles:

respect user content — Tweets may be used in advertisements, not as advertisements.
respect user experience — build your service around the timeline, not in the timeline.

And now, for the details:

1. Twitter Ads.

Twitter reserves the right to serve advertising via its APIs (“Twitter Ads”). If you decide to serve Twitter Ads once we start delivering them, we will share a portion of advertising revenue with you per our then-current terms and conditions.

2. Advertising Around Twitter Content

(a) We encourage you to create advertising opportunities around Twitter content that are compliant with these Rules. In cases where Twitter content is the basis (in whole or in part) of the advertising sale, we require you to compensate us (recoupable against any fees payable to Twitter for data licensing). For example, you may sell sponsorships or branding around gadgets or iframes that include Tweets and other customized visualizations of Twitter. Please contact us for questions and information at [email protected], or to notify us of an advertising opportunity.

(b) You may generally advertise around and on applications or sites that display Tweets, but you may not place any advertisements within the Twitter timeline on your Service other than Twitter Ads.

(c) Your advertisements cannot resemble or reasonably be confused by users as a Tweet.

(d) You may advertise in close proximity to the Twitter timeline (e.g., banner ads above or below timeline), but there must be a clear separation between Twitter content and your advertisements.

3. Using Twitter Content. You must get permission from the user that created the Tweet if You:

o want to use their Tweet on a commercial durable good or product (for example, using a Tweet on a t-shirt or a poster or making a book based on someone’s Tweets); or

o create an advertisement that implies the sponsorship or endorsement on behalf of the user.

Information provided by CrunchBase


TweetUp Launches “AdSense For Twitter” Product At #TCDisrupt

TweetUp, the Twitter-focused search and advertising startup that was incubated by idealab – the original Overture founders – is launching today at the TechCrunch Disrupt conference in New York City.

Serial entrepreneur Bill Gross took the stage for the event’s first ‘for show launch’ and publicly debuted TweetUp’s core service – the startup had earlier opened the gates for early-adopting advertisers only (their blog post is up too).

TweetUp’s destination site ranks Twitter search results by time and via an algorithm to determine if a result should go higher than other more recent tweets containing the keyword queried. Users will also see targeted (paid) advertiser results within that stream.

Gross explained that advertisers paying for ranking for specific keywords will also tend to be good results, since bad ads will be bid out of the system. TweetUp’s business model is based on a 50/50 revenue share system, which is a pretty compelling offer for advertisers.

TweetUp also offers any publisher embeddable widgets and other contextual layers filled with relevant live tweets based on given keywords – you can see an example in the TechCrunch.com sidebar on the right-hand side.

Additional benefit: analytics. Advertisers can use the TweetUp system to track in which Twitter clients their advertisements appear, the number of impressions served, aggregate of followers reached, and more.

The elephant in the room is of course that Twitter is experimenting with an ad platform of its own – not to mention other bidders such as Ad.ly and Twad.ly – and if TweetUp is going to be able to compete with that.

Time will tell, but Gross’ pedigree and some of the (at least for now) unique features of TweetUp might make a bigger impact than you would think at first glance.

Investors seems to agree: TweetUp has recently closed a $3.5 million first round of funding led by Index Ventures, and have taken investments from SV Angel (Ron Conway), First Round Capital, Betaworks, Steve Case, Jason Calacanis and Jeff Jarvis.

Watch live streaming video from disrupt at livestream.com


DST’s Yuri Milner: Facebook Is Going To Be The Social Graph That Unifies All Civilization

If you hadn’t heard of Russian Internet holding company Digital Sky Technologies one year ago, you probably weren’t alone. But last May — almost exactly one year ago — DST took the tech industry by storm with a $200 million investment in Facebook. It followed that up with a huge investment in Zynga, one in Groupon (and another in Facebook). Today at TechCrunch Disrupt, renowned interviewer Charlie Rose is sitting down with DST co-founder and CEO Yuri Milner to talk about Facebook’s dominance, social gaming, and more.

Rose: You were on your way to becoming a physicist, then you ended up at Wharton, then the World Bank. Where did you think your life was heading.
Milner: Back to Russia.
Rose: You put together the company in 99? What was the idea?
Milner: Internet was becoming big everywhere in the world. Russia is the place I thought it would thrive. There are only 4 countries in the world other than US: China, Russia, Japan, South Korea. There were a couple of exceptions. In Russia, the main reason is engineering talent. Backstage I looked at ACM championship (Olympics for programmers). Russia got six out of ten top places in the last decade.
Rose: When you put together the company. You wanted to create a company, DST , that would invest in Internet Companies, what is the model? How does it differ from traditional VC firms?
Milner: 10 years ago it was no different. In the last few years, it evolved toward late stage investment. This is valuation of around a billion, avg. investment of something like $100 million.
Rose; In other words, you want to see an established business. And you make this investment looking for, a payout from an IPO?
Milner: Yes. Either IPO or acquisition. I think the kind of investments we’re doing in the last 12 months are helping companies to delay IPO. Get another 1, 2 years to run to focus on the product.
Rose: Why Facebook?
Milner: It was the most fascinating company we had ever met. We’ve made investments in 5 social networks before Facebook. We thought we knew a few things about social networks. Facebook was a logical step.
Rose: Backstage you told me about an article in the NYT that spoke to you when we think about why social networking has become such a phenomenon.
Milner: Story was that human civilization started to develop with first social network. Emerged where population concentration was high. Helped propel to where we are now. Facebook is next step of creating a huge human brain to embrace hundreds of million, possibly billions of people. Facilitate exchange of information never seen in history of civilization. 10,000 pieces of information exchanged every day. In one year Facebook grew 3x. Three fold increase in information sharing per person.
Rose: You think FB will be one of most valuable companies on the internet. what would prevent it from doing that.
Milner: I think FB is important globally because it’s going to be one social graph that is unifying all civilization, maybe with a few exceptions. The company that creates one global social graph will be very important going forward. It will be Facebook, with maybe 2-3 local social networks able to sustain competition long term.

Rose: You believe in Russia they’ll skip email and go right to social networks.
Milner: Russia is one of the places where significant presence of social networks are driven by domestic players right now.
Rose: If Facebook is not dominant, where will it be?
Milner: THere are certain places in the world where the answer is out there whether FB will dominate — the four countries I already mentioned. Other places where there will be a tough battle.
Rose: What did you get out of the John Doerr Interview?
Milner: I agree that this will really change the way… When my wife bought the iPad her pattern of using the internet changed dramatically. She’s using it 10x more than before because it so useful and convenient.
Rose:Some people look at the iPad, there will be competitors. Does having the early start.. does that mean that this has not only the headstart but likelihood of gaining majority share?
Milner: I think so. I think the pace of change is really accelerating. You can become very big very fast.
Milner: I have this ration that if you divide age of entrepreneur by market cap of company. For Facebook it’s one. Every year of his life Zuckerberg has been making $1 billion for investors.
Rose: What advice to you give to people like Mark Pincus?
Milner: I’m not in business of influencing them… I’m influencing by them. I can bring some global perspective. Because we’re global we can potential bring global perspective to the table.
Rose: Where are the opportunities on the Internet?
Milner: A lot of it will be driving by US, picked up elsewhere..
Rose: Are there restrictions in terms of international? Will we see some kind of loosening of who has access to the market? Or does access present a problem?
Milner: I think China is going to go its own way. Russia is completely open as far as competition is concerned. Facebook is competing with a whole bunch of local networks. FB is blocked in China.
Rose: Do you think that will change?
Milner: I don’t know. It’s a tough question. In Russia, I don’t see any signs of it changing.
Rose: Finally, Facebook privacy. Where are we.
Milner: I think the definition of privacy is changing as everything else. People view privacy now different as opposed to five years ago. There’s something called Zuckerberg law. Similar to Moore’s law. Every 12-18 months the amount of information being shared between people is doubling. Basically means that people at large don’t really see that as a huge concern. But when they do I think Facebook is providing the tools to limit the information. I think the WP article today talks about making them more visible.
Rose: You want to be in this for a long time, how do you define a long time?
Milner: I think the companies we are investing in are in 5-10-15 year trend. I do want to stick around and watch them grow..
Rose: What is it about these goldman sachs people, you’re 75% Goldman Sachs.
Milner: They didn’t give me a job 10 years ago so I’m taking their people *laughs*.

Watch live streaming video from disrupt at livestream.com


Yahoo, Nokia To Launch Co-Branded Services Around The World

While we already knew the subject of this news, Yahoo’s CEO Carol Bartz officially announced Project Nike, a distribution partnership with Nokia this morning. Nokia will build Yahoo email, search, and other applications into their devices.

As part of the agreement, Nokia will be the exclusive, global provider of Yahoo’s maps and navigation services, integrating Ovi Maps across Yahoo properties, branded as “powered by Ovi.” Yahoo will become the exclusive, global provider of Nokia’s Ovi Mail and Ovi Chat services branded as “Ovi Mail / Ovi Chat powered by Yahoo!”. Nokia and Yahoo also plan to work on ID federation between their services. Select, co-branded service offerings are expected to become available from the second half of 2010, with global availability expected in 2011.

The announcement was made at the NASDAQ in New York City. Bartz highlighted the importance of Nokia’s mapping technology integrated into Yahoo’s properties. Bartz also said they are looking to make similar partnerships with other mobile phone companies.

As my colleague MG Siegler wrote last week, this play seems to be more of a short-term gain. In terms of the long-term, the future is in smartphones, a sector where Nokia is declining. Nokia is strong, however, in sales of feature phones, which are phones that people still mainly use to do things like make phones calls and send text messages. For now, thanks to the evolving markets in third-world countries, this remains an important segment and it’s certainly a compelling opportunity for Yahoo.

Also, catch Carol Bartz speaking at TechCrunch Disrupt today about the deal and future of Yahoo.

Information provided by CrunchBase


Fotolia’s Flixtime Throws A Few Punches At Animoto

Earlier this year, we covered the launch of Flixtime – an Animoto-like slideshow generation platform developed by Franco-American online stock photo giant Fotolia. When Flixtime first came out, the service naturally seemed basic in comparison to Animoto – which has been in the slideshow space since 2006. However, only a few months into its existence with over 50,000 free videos created on its site, it seems Flixtime is already throwing punches at Animoto with some new features that go live on the site today.


Watch TC Disrupt Live Right Here

Couldn’t make it to TC Disrupt? You’ll miss all the hallway deals, but you don’t have to miss the show. Watch our full coverage right here livestreamed all day, for the next three days. Starting with Charlie Rose and John Doerr through to all the Startup Battlefield launches, we’ll have live and archived video.

So stick around and watch. And if your boss asks you what you are doing, say that it is market research.


John Doerr To Charlie Rose: I Use My iPad In Church

Today’s the opening day our of TechCrunch Disrupt conference, and we’re starting it off with a bang. Famed interviewer/journalist/host Charlie Rose is talking to John Doerr, partner at venture capital firm Kleiner Perkins Caufield & Byers. Doerr is known for his massively successful investments in companies such as Google, Amazon, Intuit, and more recently Zynga (among many others).

Rose asked Doerr for his thoughts about what’s coming next. Doerr says that’s we’re on the third great wave of innovation. The first was the microchip/PC in the 80s. The second was the Internet in the 90s. And now we’re entering a wave of social, mobile, and new commerce, Doerr says.

And what’s leading that wave? The iPad.

Doerr (who invested in Apple) clearly loves this device. He had one on stage with him and kept picking it up over and over again throughout the Internet. He says it will change the way we interact with everyday things such as television. And it will charge health care. But maybe most importantly, it will change education, he says.

Rose also asked Doerr about Facebook. He asked if there will be other social networks that rise, or if Facebook will rule them all. Doerr isn’t sure. He thinks there could be a federation, or that Facebook could be the one.

That said, he does consider Facebook to be one of the “four horsemen” of the Internet right now. According to him, those are: Facebook, Google, Amazon, Apple — yes, all Kleiner Perkins investments.

Branching off from Facebook, Zynga, another Kleiner Perkins investment, is the fastest growing investment that Kleiner has ever made, Doerr says. He believes they’ve nailed the mixture of social with a business model. It isn’t just about advertising, it’s about virtual goods. And they’ve used it for good too – to raise millions for Haiti.

Rose asked Doerr what worries him the most right now. Doerr is worried about energy. Specifically, he’s worried that he U.S. if falling too far behind in energy technology. We may dominate the web, but other countries dominate the future of energy right now, and we’re going to be buying our future from them unless this changes, he reasons.

Below find my live notes of the conversation (paraphrased):

Charlie Rose: I come to this area as a laymen. But I’ve talked to a lot of people in the space. Recently Mark Pincus of Zynga. Steve Jobs did a program with me a while ago, even before he was Steve Jobs. John Doerr and I got to know each other in the 90s. Now we’re friends.

Where are we in the revolution? What comes next?

John Doerr: Great question. I think we’re on the verge of a third great wave of innovation. The first was the microchip and the PC in the early 80s. The second wave was 1995: the Internet. Marc Andresseen brought Netscape Navigator to the world. Then Amazon came. Then in 1999 we saw the 15th search engine called “Google.”

This third wave is social, mobile, new commerce. We don’t have a name for it yet. We could be on the verge of reinventing the web. It’s people, it’s places, it’s relationships. It’s exciting.

CR: What will influence its velocity.

JD: One key thing is apps. Steve Jobs has transformed everything. It’s turning this world upside down.

CR: In the first hour with the iPhone and app, you were in right? You knew.

JD: I did. These smartphones change everything. They’re always connected, always on. It’s a powerful new platform. 85 million iPhones and iPod touches – we’re there. And now we have the iPad. It took just 28 days to sell a million of them. It’s not a big iPod. It’s a new paradigm. Imagine 10 years forward.

CR: Go ahead take 10 years forward. Steve Jobs told you “this is the best work of my life.” Why does he think that?

JD: It’s not a computer. You don’t need files. You don’t need mice. It’s magic, what you see is what you touch. I don’t want to call it a computer. It’s a magical surface.

CR: Go ahead take 10 years forward. Steve Jobs told you “this is the best work of my life.” Why does he think that?
JD: It’s not a computer. You don’t need files. You don’t need mice. It’s magic, what you see is what you touch. I don’t want to call it a computer. It’s a magical surface.

JD: I found I can take it to concerts. And church. (laughs)

CR: You own Apple stock.

JD: Regrettably (laughing). We raise $100 million iFund 14 companies from 5,000 that applied. This year those ventures will do $100 million in revenues. 80 million minutes a day in those applications. In 14 months we ran out of money. So we went back to the piggy bank to get another $100 million.

CR: What’s with Steve an Adobe?

JD: He has a note on his site about it? Flash is buggy and power problems. The iPad runs for 10 hours.

CR: Is battery improvement coming?

JD: No, it’s coming really slowly. There are some disruptive things, but it’s coming slow.

CR: What else does the iPad need to make it better?

JD: There’s the obvious things like a camera. It will be 5 times as fast, a terabyte of storage. And that’s just a few years from now. It won’t have a phone in it.

CR: What does Mark Pincus and others like Zuckerberg have in common with some of the greats?

JD: They were nerds. They had no social life whatsoever. They have a love affair with their companies. They were missionaries not mercenaries.

CR: Bill Gates was more Rockafeller then Edison.

JD: They’re passionate about product. It’s the most important thing.

CR: Talk about Kleiner Perkins. Some investments are successful, some are not. Talk about Zynga.

JD: We invested in Zynga 20 months ago, and it’s the fastest growing venture we’ve ever had. The people there are extraordinary. They can monetize these new social networks. Advertising is one part, but it’s more than that. 2% will pay for virtual goods. They also raised $3.6 million for Haiti in just a few days. It’s powerful stuff.

In any day there are 30 million people playing Farmville — that’s more than watch 60 minutes.

CR: So what can you do with that?

JD: A lot. There’s not branded place on the Internet right now to have fun. It’s about life. They become a habit that connects you.

CR: Is the core of the third wave the convergence of social and mobile?

JD: That’s at the core, but it’s changes in consumer behavior. New commerce is included. Mark Pincus’ wife Ally has a company called One King’s Land, there they find limited sale — you better get it now. It’s an idea.

CR: Social networking is an old idea, that Facebook brought into the future. Will there be one?

JD: That’s an interesting question. I don’t know. There may be one, or there may be a federation.

CR: What does your history tell you?

JD: It tells us that one of the key to all of this is network effects. When you have 500 million people and you square that — it’s a huge number.

CR: Will there be more?

JD: I don’t know. Let’s see.

CR: Let’s talk about media. What about Google TV?

JD: It’s the best version of what it is that I’ve seen. For the last time we’ve watched the Super Bowl with out the Internet in your lap or on the screen. The Internet are finally coming together.

CR: Let’s talk about China.

JD: They now have more Internet users than we do. They’ve been ahead in user pay. But Google is leaving the mainland, the state is soverign. The leading players are Chinese companies. It’s a tough market for Western Companies.

CR: What does that mean for Google?

JD: (pauses) Google takes a very principled point of view. You can’t buy position in their network, for example. For a state to not let things be ranked automatically didn’t work. They stepped away from the largest market.

Google, Apple, Amazon and Facebook are the Four Horsemen of the Internet. Each of those have huge market and can innovate.

CR: What’s disruptive looking down the pipe?

JD: I haven’t talked about new immersive relationship between you and the medium. Again, I’m not talking about computers. It’s like the iPad. This is a fluid experience. New ways of interacting, things from Apple, Cooliris, there are others. These will improve. We’ll look back at these devices today as if it’s the stone age.

I’m excited about what the iPad can do with healthcare. The government is spending $20 billion on this. We need this information in the cloud. Every doctor and nurse needs an iPad.

CR: But someone has to teach the doctors how to do this, right? They’re too busy.

JD: Sure. Another thing is education. This tablet will transform education.

CR: But the potential in schools hasn’t taken place yet, right? But this will do it?

JD: That’s correct.

CR: Russia wants to create a Silicon Valley — so does China.

JD: I talked to one of the Russian guys behind this. He said it’s not going to work — because it’s hard.

CR: What excites you about the future — where are we missing something? What worries you?

JD: My worry isn’t about innovation in tech — the iPad is transforming things. But I worry about energy. We continue to spend too much money overseas, and we’re hurting the environment. The U.S. was the leader in the Internet.

But in new energy tech, 4 of the top 30 in new green tech re in the U.S. It’s like if Microsoft, Apple, Google, Facebook were all outside the U.S. Only Amazon would be American. We have to get in this game. Or we’ll be buying our energy from the world. That worries me.

That’s a wrap.


Mark Zuckerberg On Facebook’s Privacy Controls: “We Just Missed The Mark”

This morning in a letter published in the Washington Post, Facebook CEO Mark Zuckerberg has responded to the barrage of criticism that has been directed toward the site since its set of announcements at f8. The key message: Zuckerberg says that with respect to its privacy controls “[Facebook] just missed the mark.”

The letter isn’t particularly apologetic — you won’t find words like “sorry”, “fault”, or “mistake”. Instead, it’s more of an acknowledgment that Facebook has heard the criticism and will be responding to it. Soon, Facebook will be rolling out a new set of simplified privacy controls and an easy way to “turn off all third-party services”. Here are some key quotes from Zuckerberg’s letter:

We have heard the feedback. There needs to be a simpler way to control your information. In the coming weeks, we will add privacy controls that are much simpler to use. We will also give you an easy way to turn off all third-party services. We are working hard to make these changes available as soon as possible.

The biggest message we have heard recently is that people want easier control over their information. Simply put, many of you thought our controls were too complex. Our intention was to give you lots of granular controls; but that may not have been what many of you wanted. We just missed the mark.

We have also heard that some people don’t understand how their personal information is used and worry that it is shared in ways they don’t want. I’d like to clear that up now. Many people choose to make some of their information visible to everyone so people they know can find them on Facebook. We already offer controls to limit the visibility of that information and we intend to make them even stronger.

None of this should have come as a surprise to anyone at Facebook. I’ve been writing about the looming backlash for months. Not because I’m especially prescient, but because it was really obvious to anyone paying attention. Facebook made a gamble, and it hasn’t worked out very well. At least for now — expect them to try to push the envelope again in, oh, about six months. Hopefully users will be better educated about their privacy and how to control it when that time comes.

Top photo by Steve Maller Photography

Information provided by CrunchBase


Flash Kills Browsing In Android 2.2 Froyo

Brian at PocketNow posted a browser comparison video showing the iPhone, the Nexus One, and the HTC HD2 all viewing the same websites. He installed Froyo on the Nexus One and downloaded the Flash beta which allows him to run almost all Flash content. It’s really long.While I do enjoy a long video of a man playing with Android phones, 11 minutes worth of a man playing with phones (found after the jump) might be a bit tiring. However, the money shot comes at about 1:40 where you see some Flash games playing in the wild.

I think the most interesting part of that part of the video is how close Flash games running on a good processer are to standard, natively written games.

So fine, you say, things look great. Why not run Flash?


Constant Contact Acquires Social Media Inbox Startup Nutshell Mail

Email marketing company Constant Contact has acquired NutshellMail, a FbFund-backed startup that provides an innovative web-based service that lets users send and receive your messages from social networks, such as Facebook, LinkedIn, MySpace and Twitter, in your email inbox. Terms of the deal were not disclosed.

Founded in 2007, NutshellMail was one of twenty startups incubated within the 2009 class of fbFund REV, Facebook’s joint program with Accel Partners and Founders Fund aimed to help foster quality applications on Facebook Platform.

Constant Contact will use Nutshell to compliment its email marketing, event marketing, and online survey tools for small businesses and nonprofit Constant Contact also announced it will open a Bay Area office.

A number of fbFund startups have seen exits over the past year or so. Groupcard was just acquired by InComm, Weardrobe was acquired by Like.com last fall and WedSnap, the developer of Facebook app WeddingBook was bought up by the Knot.com.


Steve Jobs’ “Non-Disappointing” Keynote Will Begin Monday, June 7 At 10 AM

So mr. Jobs is saying we won’t be disappointed by the announcements that will be made at Apple’s Worldwide Developer’s Conference.

And now the company has been gracious enough to also let us know when exactly he’ll be delivering.

Mark the date: the man’s keynote address kicks off on Monday 7 June at 10 AM PST.

We know a new iPhone is coming – but what else?

Check back here for extensive coverage of the whole event from before it starts until way after. Yes, we’re a little magical too.

Press release below:

Apple will kick off its annual Worldwide Developers Conference (WWDC) with a keynote address by CEO Steve Jobs on Monday, June 7 at 10:00 a.m. This year’s WWDC sold out in a record eight days to over 5,000 developers.

The five-day event running from June 7 to June 11, is focused on providing advanced content for skilled developers across five key technology tracks: Application Frameworks; Internet & Web; Graphics & Media; Developer Tools; and Core OS. Apple engineers will deliver over 100 solutions-oriented technical sessions and labs.

WWDC 2010 gives an incredibly diverse community the opportunity to connect with thousands of fellow iPhone®, iPad™ and Mac® developers from around the world.


IBM Acquires Sterling Commerce From AT&T For $1.4 Billion

IBM is acquiring Sterling Commerce from AT&T for approximately $1.4 billion in cash. Sterling Commerce applications streamline the commerce lifecycle from selling to fulfillment to payments. The deal is expected to close in the second half of 2010.

IBM says the acquisition of Sterling will expand its ability to help organizations connect and communicate with customers, partners and suppliers both on-premise or through cloud computing delivery models.More than 18,000 customers use Sterling Commerce offerings.

This year, IBM bought up cloud computing company Cast Iron, health care data management firm Initiate and Intelliden. Last year, IBM acquired six companies, including Guardium, RedPill Solutions, SPSS, Ounce Labs, Exeros and Outblaze.

Information provided by CrunchBase


SCVNGR At TechCrunch Disrupt: Win The Trek, Win An iPad


SCVNGR, the location- and mobile-based social gaming platform, has an offer for those of you lucky enough to be here at TechCrunch Disrupt. They’ve created a trek (a set of challenges, to the uninitiated) based on locations in and around Disrupt, and if you’re game, you stand a chance of winning a shiny new iPad.

I’m guessing there will be a number of check-in missions in addition to more involved ones like making a tower of Red Bull cans. I’d throw my hat into the ring, except I’ve already got more iPads than I know what to do with. I’m considering building a sort of shrine. But if you could use an iPad, and you have an iPhone or Android device, go download the SCVNGR app and start trekking.

If you’re really into this kind of thing, you’ll probably be happy to hear that you’ll get a badge (pictured in all its glory right over there –>) for completing enough challenges. The winner will be the one with the most points at the end of the conference. Get to it!

Information provided by CrunchBase