Woo wee, did Hulu's fortunes flip-flop fast.
Jason Kilar, Hulu CEO
(Credit: Greg Sandoval/CNET Networks)The Web's deepest stockpile of full-length TV shows and feature films is seeing some very public infighting over Hulu's future. The disagreements are over how Hulu should generate revenue and even how to sell ads, according to a report last week in Mediaweek.
Things were going so well. Since Hulu's October 2007 launch, the Web video site founded by NBC Universal and News Corp., has grown its audience, generated big ad revenue and been bathed in positive press.
Hulu has mounted the only serious challenge to YouTube. The site also enables its TV network backers to offer viewers an alternative to pirate sites. But the indications are Hollywood is dismayed over Hulu's earnings. On the issue of Web revenue, the studios seem to be saying: "Is that all there is?"
The first signs that Hulu may not be the cash cow that everyone involved had hoped for came earlier this year. Instead of ballyhooing selling out of ad inventory like it had done a year earlier, Hulu's managers hushed up.
Then, NBC Universal CEO Jeff Zucker and News Corp. Chairman Rupert Murdoch publicly commented that Hulu may charge for some content. In an interview with Dow Jones last week, News Corp. COO Chase Carey said that it's important that Hulu have "a real subscription aspect" but added that some content will always be free.
Want to bet that the content you'll have to buy will be the latest and most popular TV shows and films?
Hulu's management is wrestling with these issues at a time when the public increasingly develops an appetite for high-quality Web video.
The number of U.S. households with broadband access that watched full-length movies and TV shows online doubled in the past year, according to research firm, Parks Associates. According to the firm, 45 million households regularly watch either TV shows or films via the Internet.
Jayant Dasari, a research analyst at Parks, said that people like the control that sites like Hulu give them. If they miss a favorite TV show, they can get caught up on Hulu.
"If they're on the road or don't have access to a (Digital Video Recorder) they are more than willing to consider the option of broadband video," Dasari said. "This is a trend that can no longer be ignored."
(Credit:
Greg Sandoval/CNET Networks )
Dasari said that Web' video's growth is being stifled by the lack of content available at Hulu and other sites. For example, there are only a handful of feature films available at Hulu. Crackle.com, Sony Pictures' Web service, only posts a fraction of its vast library of films on the Internet, but there's not another studio even offering that.
So what? What does it mean if the studios hobble Hulu? Consumers have watched TV for over half-a-century. They can still go back there. Right?
Eric Garland, CEO of Big Champagne, a company that tracks traffic on peer-to-peer sites--where most illegal file sharing occurs--told me recently that consumers are heading online for video entertainment and he doesn't expect them to return to their traditional viewing habits ever again. Garland's data shows that Hulu is the first legal Web service to snatch market share away from the pirate sites.
He also said that the lords of video, with their rejection of Internet businesses, are behaving much the same way the music industry did when confronted by the digital age. Garland said that if network and film studio executives are dissatisfied with the returns they see from Hulu and similar sites, they should consider the possibility that this is all the new media landscape will yield.
Perhaps in a sign of how the plague of social media has numbed us all to the value of legitimate human connections, the New Oxford American Dictionary has picked the verb "unfriend," or "to remove someone as a 'friend' on a social networking site such as Facebook," as its 2009 Word of the Year.
At the very least, it's a testament to the ubiquity of Facebook, which now has well over 300 million members around the world.
Facebook itself takes the process of "friending" and "unfriending" very seriously. It once blocked a third-party game called PackRat because it encouraged players to amass huge friends lists (good heavens! they're polluting the social graph!), banned a Burger King ad campaign that let members "sacrifice" their friends to get a free cheeseburger ("Friendship is strong, but the Whopper is stronger"), and still puts a cap of 5,000 on personal profiles' friends lists.
Last year's Oxford word of the year was the decidedly less mainstream "hypermiling."
Cisco Systems has bumped up its buyout offer to $3.41 billion for video conferencing company Tandberg.
The network giant's initial bid received a thumbs down from most of Tandberg's shareholders, who felt the initial $3 billion offer undervalued the company.
So far, more than 40 percent of Tandberg's stockholders, which includes investment firm OppenheimerFunds and Norwegian government pension fund Folketrygdfondet, have pre-accepted the new offer.
Cisco announced on October 1 that it was pursuing a $3 billion cash takeover of Tandberg, a major global supplier of video conferencing equipment with dual headquarters in Oslo, Norway, and New York City.
Increasingly important to companies looking to cut travel costs, teleconferencing is considered a growth industry. Cisco wants a bigger piece of that pie, and analysts didn't expect it to give up on Tandberg too easily.
The new bid expires December 1. Cisco said that if the bid isn't accepted by that deadline, it will withdraw the bid and look at other ways to expand its reach in the video conferencing market.
Cisco has been on a tear lately buying smaller niche companies, taking over a few firms earlier in the year and recently announcing plans to gobble up security software firm ScanSafe and wireless equipment maker Starent Networks.
The app features every member of Congress, including Speaker of the House Nancy Pelosi.
(Credit: Screenshot by Natalie Weinstein)Apple's App Store has given a nod to an application that features bobble-headed caricatures of congressional politicians and provides contact information.
"Apple came to its senses yesterday and approved the app," Mad Magazine artist Tom Richmond wrote in his blog Saturday. "You have to wonder how much of the decision was based on the press [coverage] and image hit Apple had taken, and how much of it was simply that some overworked approval person rubber stamped it as a reject."
The Bobble Rep-111th Congress Edition app caught the public's attention this week after Richmond wrote a blog about the rejection and quoted from Apple's letter. The letter stated that the app violated the developer license agreement because it "contains content that ridicules public figures," according to Richmond's earlier post.
Apparently, someone at Apple didn't think it was particularly funny to see Richmond's 540 caricatured heads, which bobble around when an iPhone is shaken.
Richmond had called Apple's decision "truly ridiculous" and had written that the "caricatures aren't mean or very exaggerated."
The app costs 99 cents, which comes out to about one-fifth of a cent per politician.
(By the way, the 540 politicians includes the 100 senators, 435 representatives, and five nonvoting delegates.)
A revised settlement filed late Friday over Google's right to scan digital books places additional limits on the company.
The settlement allows out-of-print books from only English-speaking countries to be scanned, restricts the ways that Google can make money from scanning and digitizing out-of-print books, and requires a registry to seek out copyright holders who do not come forward.
The amended settlement comes after Judge Denny Chin of the U.S. District Court for the Southern District of New York granted on Monday a deadline extension to the parties to try to resolve issues that the U.S. Department of Justice had with the original October 2008 settlement.
The settlement now applies only to out-of-print books registered with the U.S. Copyright office or published in the U.K., Australia, or Canada--countries that have a common legal heritage and similar book industry practices--according to the FAQ on the revised settlement.
Each of those countries will have an author and a publisher seat on a Book Rights Registry board, a nonprofit that will be responsible for paying authors and publishers.
The Book Rights Registry will be required to search for copyright holders who have not yet come forward and to hold revenue on their behalf, under the revised settlement. An independent fiduciary approved by the court will make decisions regarding unclaimed works.
Readers will be able to preview and purchase books, institutions can buy subscriptions, and libraries will have free access at designated terminals. The revised settlement limits Google's future business models from the works to individual subscriptions, print-on-demand, and digital downloads. The company will need to get approval from the registry's board and provide notice to all claiming copyright holders before implementing any of the business models.
Copyright holders can now choose to make their books available for free or allow reuse under Creative Commons, as well have the option to modify or remove restrictions placed on Google's display of their books, such as limits on the number of pages that users can print.
The settlement still allows any bookstore to sell online access to out-of-print books covered by the settlement, including unclaimed books. Copyright holders will still receive 63 percent of such revenue, while retailers will keep the majority of the remaining 37 percent.
A portion of the revenue generated from unclaimed works may be used to locate copyright holders after five years and will not be used for the registry's general operations or redistributed to other copyright holders as previously planned. After 10 years, the registry may ask the court to distribute these funds to nonprofits.
The Book Rights Registry will now hold unclaimed funds for 10 years, instead of five. After that time, the funds will go to nonprofits in the English speaking countries.
The Registry also is prohibited from sharing pricing information with anyone but the book's copyright holder, according to settlement. Authors and publishers will have until March 31, 2011, to make claims for the $60 to $300 per-book-digitization payments, and have until March 9, 2012, to remove works from Google's database.
The revised settlement makes it clear that Google will not display any content by default from works that are for sale as new internationally, which are considered commercially available. In addition, it includes language that specifies that Google will not share any private information with the registry without valid legal process.
Authors and publishers from outside of the covered countries can still enter into promotional and revenue-generating programs through Google's Partner Program.
"The changes we've made in our amended agreement address many of the concerns we've heard (particularly in limiting its international scope), while at the same time preserving the core benefits of the original agreement: opening access to millions of books while providing rightsholders with ways to sell and control their work online," Dan Clancy, Google Books engineering director, said in a statement.
"We're disappointed that we won't be able to provide access to as many books from as many countries through the settlement as a result of our modifications, but we look forward to continuing to work with rightsholders from around the world to fulfill our longstanding mission of increasing access to all the world's books," Clancy said.
According to Google's FAQ, the court will create a timeline for the revised settlement, "which will likely include a notice period, an objection period, and a final fairness hearing in early 2010."
Google is seeking rights to scan and display out-of-print books as part of a larger effort to create the modern day equivalent to the Library of Alexandria. Opponents argue that the settlement puts too much power in the hands of one company.
In September, the Justice Department voiced objections to the proposed settlement on antitrust grounds. The agency was bothered by the fact that Google and the Books Rights Registry, a nonprofit that will pay authors, would have sole control over the pricing of institutional subscriptions to the digital library. The DOJ also raised questions about whether the proposed settlement complied with Rule 23 of the Federal Rule of Civil Procedure, as well as copyright law in general.
Google first announced plans in 2003 to make books searchable and has hit snags with its efforts since, being sued by authors and facing opposition internationally.
Medpedia, a collaborative project for medical information launched in February, is getting beyond the medical-data basics as it adds answers, alerts, and analysis.
Founded on the noble and semipractical system of providing free online medical information generated for and by physicians, journals, schools, patients, and more, Medpedia's three stated goals are to be collaborative, interdisciplinary, and transparent. The idea is to maximize knowledge and minimize the kind of screwing around that continually threatens the efficacy of other wiki-based projects. Of course, the extent to which this is successful hinges on the quality, integrity, and transparency of the editors.
While Medpedia uses the open-source software Mediawiki (also used by Wikipedia), it is less collaborative than the vast encyclopedia site, allowing only physicians and Ph.D.s approved by an editor to contribute to and edit articles. (The less medicine-literate masses are allowed to create accounts and suggest changes, but not actually make them.)
The jury's still out on whether Medpedia will be big enough to be a successful repository of up-to-date information and tame enough to be useful, but three new features, announced this week, might at least help push it out of beta incubation:
Medpedia Answers is a Q&A feature, collecting questions and answers about health, medicine, the body, etc., tagged for search optimization, and pushed to relevant articles and patient communities. Anyone who takes the time to create a profile can contribute to this section, with a top-contributors list cluing in users to which answers are written by the most informed (and involved) users.
Medpedia Alerts aggregates health and medical-news alerts. Anyone with an account can submit here as well, but this section appears intended to work something like Google Reader, with all sorts of feeds plugging into the platform.
And finally, Medpedia News & Analysis lets a wide range of sources accepted by the Medpedia community self-organize by category, and tag and cross-link to articles. This section is not, strictly speaking, licensed by Medpedia, so copyright is held by the authors themselves, which could prove tricky, as Medpedia hosts content that may or may not be allowed to be there.
Since Medpedia went live earlier this year, it has drawn thousands of members, including physicians, researchers, organizations, and experts contributing to its growing knowledge base. Plus, it has the likes of Harvard, Stanford, the National Health Services, and American Heart Association participating. Will Medpedia's less democratic editing system prove more bulletproof than Wikipedia's? So far, so good.
For Madison Avenue, Facebook just got a little less free.
Last week, the massive social network announced that brands, advertisers, and marketers that want to run contests or sweepstakes on its platform have to go through an approval process first.
Getting that approval could be a new revenue stream for Facebook: according to multiple sources in the marketing industry, they're being told that running a promotion in a Facebook application or "fan page" requires buying ad space too.
It's pricey. The minimum ad buy is $10,000 for 30 days, using Facebook's self-service advertising system, according to documents seen by CNET, or $30,000 for 30 days of Facebook home page ads. Priority in the approval process will be scaled, based on how much advertising space has been purchased. It's a move that one marketing industry professional called, in perhaps a bit of hyperbole, "a little Death Star-ish."
A Facebook representative declined to confirm and said the company did not have any comment beyond official documents released on its Facebook Marketing Solutions page.
Let's step back. Cracking down on contests and promotions might seem draconian, but it's actually important for Facebook: the U.S. state and federal laws that govern sweepstakes are extremely complicated, and by allowing only approved contests, Facebook is making sure that its bases are covered.
"Any promotion that any brand, product, or company would run has to have a terms of service against it," said Gunter Pfau, CEO of the Stuzo Group, an agency that has developed numerous Facebook contests and sweepstakes for clients. "Also, depending on the prize value, they need to be filed with various state regulatory agencies."
What, exactly, is new for contests? If a brand is running a contest on its fan page, it has to be handled through an embedded, separately developed application--not, for example, in the page's "wall." Promotions also can't involve Facebook users manipulating their user photos or status messages specifically for the contest.
Legal experts agree that this is necessary. "The (new Facebook) guidelines really cover only a narrow subset of promotions, specifically sweepstakes, contests, and similar competitions," explained Thomas Williams, a partner at the Chicago law firm Howrey, who specializes in trademark law. "That type of contest or promotion is governed by a myriad of state and federal regulations, so what I think Facebook is attempting to do here is merely shield itself from liability that arises out of its users' potential violations of these laws."
Williams continued: "I think it's a prudent and reasonable step on Facebook's part. There are lawyers who specialize in sweepstakes law, and there really are a lot of twists and turns to it."
One thing it'll also do, Stuzo Group's Gunter Pfau explained, is keep dishonest campaigns and promotions off the Facebook platform. "I think it's great news for consumers," he said. "I think what Facebook is doing is really laying these guidelines in place for companies to protect consumers more."
But what about the new ad spend requirements? Facebook has historically pitched its developer platform and fan pages as a free way for advertisers and marketers to tap into the power of "the social graph"--its 300 million-plus active users and their connections to one another. And while it's clear that the company sees these free pages and applications as a stepping stone for ad dollars--Chief Operating Officer Sheryl Sandberg, for example, regularly gives Madison Avenue talks about the company's "engagement ads"--it doesn't have a long track record of requiring advertisers to pay for something that used to be free.
"It makes sense for Facebook, but (it's) a little discouraging to advertisers," commented Alisa Leonard-Hansen, who holds the title of social-media evangelist at digital-marketing firm iCrossing. "Facebook is continually trying to discover new ways to monetize, and they picked up on the trend that advertisers were using their pages to run contests and other promotions. I think Facebook was looking to be able to benefit from this marketing trend."
The ad spend requirements, too, could be considered partial compensation for the new human resources required in Facebook's approval process. Each company running contests on Facebook now has a designated advertising sales representative, and fan pages will continue to have to be policed for potential violations of both advertiser regulations and sweepstakes law.
There might not be a lot of friction as the new regulations go into effect. Companies that don't run contests on their Facebook fan pages or applications won't be affected. Even some that do, especially small-scale fan pages that could easily go unnoticed by Facebook, won't have to change much. "Of course, there are going to be savvy marketers who skirt this and run (contests) under the radar," Alisa Leonard-Hansen said.
It really goes without saying the obvious: this is Facebook's service, and it can do what it wants with it. That doesn't mean marketers will stop grumbling. As one put it in a phone call to CNET, "This is another example of Facebook saying, 'Sorry, eat it, you've got no choice.'"
The next time you search Google for life expectancies or number of Internet users in the U.S., you'll find the specific figures plus an interactive chart letting you compare the U.S. with other countries.
Since Wednesday, Google has been tapping into data from the World Bank to provide key details and interactive charts on specific topics along with its own search results. The goal is to better help you search for and compare certain types of public data.
The World Bank is providing Google with facts and figures on 17 key indicators, including population growth, fertility rate, gross national product, and energy use.
Enter one of the 17 indicators into a Google search. You can phrase it as the specific indicator, for example, "population world," or type it as a natural question: "What is the population of the world?"
At the top of the search results, you'll find a thumbnail chart along with the latest statistics. (According to the World Bank, 72.4 percent of the U.S. population is on the Internet as of 2008.) Click on the chart or accompanying link, and up pops a larger interactive graph where you can visually compare the U.S. with other countries by clicking on their check boxes.
(Credit:
Google)
You can embed the chart's HTML in your own blog or Web page and opt for the data to be updated automatically anytime the World Bank's information changes. Finally, a link for more info brings you directly to the World Bank's Web site where you can dig further into the results of your search.
This latest partnership with World Bank is part of Google's effort to offer data beyond that which it can grab from your average Web page. Back in April, the search giant started integrating stats and charts from the U.S. Census Bureau and the U.S. Bureau of Labor Statistics.
But the World Bank is the first source to provide global data for Google. The World Bank's figures come from its World Development Indicators (WDI), a collection of data derived from its own research and that of 30 other sources. The global data includes statistics on social, financial, and environmental areas encompassing more than 100 different countries.
... Read more
Apple quietly launched a new preview service this week that makes it easier for users to view its iTunes music library from the browser.
Dubbed iTunes Preview, the new feature allows visitors to view iTunes content from their browser without being forced to launch iTunes. Previously, when a Web user received an iTunes link, they needed to open iTunes to view its content.
As part of the launch, Apple has updated links in iTunes to redirect to iTunes Preview. When a user copies a link in the software and pastes it into the browser, they will be brought to the song's individual listing on Apple's Web site. The feature is especially handy for those who don't use iTunes, since they can now view an individual song without being forced to download the software.
Aside from individual music listings, iTunes Preview also allows users to sift through artists and albums based on genre. Each individual listing displays all the songs in an album, the album art associated with it, its cost, and other content typically found in the iTunes store. The page also includes a link to the iTunes store in case the viewer wants to buy it. That said, there aren't any song previews in iTunes Preview; users will still need to go to iTunes to hear them.
iTunes Preview in action.
(Credit: Screenshot by Don Reisinger/CNET)For now, iTunes Preview features music. There's no telling if Apple will add more content over time. If you want to check it out, copy an iTunes link from within the software and paste it into your browser.
(Via AppleInsider)
Don Reisinger is a technology columnist who has written about everything from HDTVs to computers to Flowbee Haircut Systems. Don is a member of the CNET Blog Network, and posts at The Digital Home. He is not an employee of CNET. Disclosure.
Here's the story. Or at least most of it.
Some 19 years ago, a man in Germany, together with his half brother, reportedly murdered an actor named Walter Sedlmayr. The man was convicted and served 15 years in jail.
Now he is free. And, according to Wired, he has exercised that freedom by instructing lawyers, the elegantly named firm of Stopp and Stopp, to sue Wikipedia.
The lawsuit claims that German privacy law, designed to help criminals re-integrate into society, prevents the man being named in association with Walter Sedlmayr's murder.
Wired quotes Jennifer Granick from the Electronic Frontier Foundation as saying that the lawyers are not only demanding that publications change whatever they write now, but that online archives must endure revision, too.
In writing to Wikipedia, the lawyers offered a very interesting approach: "As your article deals with a local German public figure (such as the actor Walter Sedlmayr), we expect you are aware that you have to comply with applicable German law."
Well, gosh, perhaps not everyone realizes when they mention, say, Boris Becker or that interesting actress who was in the first of the Bourne movies, that one is subject to German law when one does so.
Geek.com quotes the Electronic Frontier Foundation as adding: "At stake is the integrity of history itself. If all publications have to abide by the censorship laws of any and every jurisdiction just because they are accessible over the global Internet, then we will not be able to believe what we read, whether about Falun Gong (censored by China), the Thai king (censored under lèse majesté) or German murders."
(Credit:
CC Schoschie/Flickr)
You might be wondering why I have not mentioned this German murderer's name. You see, as I write, I am reminded that the world seems to revel in the persona of murderers. In some slightly twisted way, they become figures of fascination.
I have a strange suspicion that the more the name of Walter Sedlmayr's murderer is mentioned, the more famous he will become. And the more famous he will become, the more money he might be able to make from the fame he claims not to desire.
So I am conducting a fame-reduction experiment. Moreover, I know that everyone who chooses to discover his name can do so in a myriad of ways.
I wonder how many people tried to access information about this man who murdered the German actor Walter Sedlmayr and how many people have done so in recent days.
I also wonder how Wikipedia will choose to respond to this interesting and rather revisionist-minded lawsuit. At the time of writing, the full names of both murderers are still there in the Wikipedia entry for Walter Sedlmayr.
However, the Wikipedia Administrators' noticeboard has a spirited discussion about all aspects of the case.
The solution proposed by a poster called Zara 1709 on the noticeboard is to "remove the full name from the article and the article talk page, but leave in the edit history of the article and the talk page. We would even have some sources that mention the full names in the reference, simply because they provide other, relevant information, too."
The precedent for this is the so-called Star Wars kid case, in which a 14-year-old Canadian boy waved around a golf-ball retriever like a lightsaber and then endured painful taunts, leading to an equally painful lawsuit.
Zara1709 noted that: "It is quite important to point out that, on Wikipedia, regard for people's privacy applies to criminals and former criminals, too."
However, another poster, Baseball Bugs, dissented: "There is no justification whatsoever for censoring the names of the killers. The notability argument is bogus, there is no privacy or BLP issue, and the 'doing harm' argument is crystal-ball and thus is irrelevant. And some anonymous German judge has no jurisdiction over Wikipedia."
In reading all this, I am left with the words that were often drubbed into me by teachers: "History is written by the winners."
So if this German request succeeds, might some consider that the winner is Wolfgang Wehrle, the man who, with his half brother Manfred Lauber, murdered Walter Sedlmayr 19 years ago? Dash it, I couldn't help myself. I hope I'm not causing undue work for some future editor.



