Digital Media

I had a fascinating conversation with MediaNet CEO Alan McGlade on Friday morning. Unless you're deeply involved in online music, you probably don't know MediaNet, but it's the back end powering a lot of music services you might have used, including MOG's subscription service that launched earlier this week, as well as Microsoft's excellent Zune Pass subscription service and iLike's online music marketplace. (MySpace acquired iLike in August, and in November, links to iLike's service began appearing directly in music-related search results on Google.)

Fox Interactive used MediaNet's technology to embed this list of Aerosmith songs in a story about the band. Readers could then listen to a sample or buy the song.

(Credit: MediaNet)

They've also got more history in online music than just about anyone. The company started off as MusicNet, with part-ownership by three of the then-Big Five major labels: BMG, EMI, and Warner. They powered RealNetworks' music initiatives before RealNetworks bought Rhapsody. They powered Yahoo Music. They powered MTV's online music store.

These early stores went nowhere. Content owners insisted on digital rights management (DRM) restrictions, which meant that content from these stores had restricted use rights and couldn't be played on every device--including, in most cases, Apple's iconic iPod. Setting up a store using MediaNet's platform often took 18 months and significant technical expertise. In the meantime, Apple focused on a dedicated online store for its own devices, and completely dominated the market for music downloads.

But the landscape has changed. Labels don't want to be beholden to Apple. They no longer insist on DRM for single-song downloads, and have realized that the more outlets there are for their digital music, the more customers they'll reach, and the more sales they'll have. (Amazing it took this long to figure out.) MediaNet is, in my opinion, incredibly well positioned to take advantage of this sea change.

In October, the company released a set of technologies called MN Open that make it almost trivially simple for companies to add a wide variety of music consumption options to their Web sites. Sure, companies can still use MediaNet to build an end-to-end service like MOG.

But say you're Fox Interactive and want to make a story about Aerosmith more engaging. Using a MediaNet component, Fox created a link for the first mention of the word Aerosmith that took users to a page with more information about the band, and links to play and buy some of their popular songs. Fox also posted Aerosmith songs in a box directly on the story page.

MediaNet handled all the heavy lifting: licensing the music, streaming the samples, and fulfilling the transaction. Fox kept its brand and design throughout the process, and users didn't have to leave the site to buy the song. Best of all for Fox, it didn't have to make any up-front payment to use MediaNet's technology. Instead, MediaNet takes the customary cut of any song purchased through the site (about 30 percent, if it's anything like Apple). The model's the same for sites that offer free ad-supported streams or subscriptions--MediaNet takes a portion of each transaction, then handles payment to the content owners.

Now imagine this kind of integration on sites for radio stations, record labels, or your favorite bands. Imagine your ISP or cell phone carrier offering you a music subscription service bundled with your Internet service or smartphone. In this world, users won't have to go to iTunes or Amazon MP3, or subscribe to Rhapsody (or MOG for that matter). Music will be available for consumption everywhere. And content owners will get paid regardless of where users buy it.

According to McGlade, it's already happening--he said MediaNet is adding about one new distributor per day, and has already got about 50 customers using the MN Open platform. One site, GetPlaylists.com, was able to add playable song samples and downloads-for-sale in only two days with MN Open, according to McGlade.

Thanks to this upsurge, the company--which is owned by a private equity firm and no longer has any direct ownership affiliation with the major labels--has recently crossed over into profitability. A rare situation indeed in today's online music landscape.

It's a great vision, and something that Microsoft, the original platform company, could have done. But Microsoft spent years pushing the Windows Media Platform, which made heavy use of Microsoft codecs and file wrappers (instead of MP3s, which were becoming the industry standard). Microsoft also spent a lot of effort trying to enable the labels' DRM demands--for example, by building a platform to enable subscription-based downloads to be transferred to portable devices. Then, just as the labels were getting ready to abandon DRM, Microsoft basically gave up pushing Windows Media as a general-purpose platform for distributors and device makers, and instead started trying to mimic Apple's end-to-end software+service+device with the Zune strategy.

Talk about an opportunity lost! Instead of struggling along with something like 2 percent of the digital media player market, Microsoft could have ended up powering the music technology on thousands of Web sites.

Another aside: while MusicNet offers a lot of flexibility for distributors--downloads, samples, free streams, or subscriptions are all supported--McGlade is most bullish on subscriptions as the digital business model of the future. He admits that old fogeys accustomed to CDs and vinyl will have a hard time giving up the concept of ownership, but suggests that today's teenagers don't care--they want music on demand from any device, any time, in any location, and don't need to have the files physically present. McGlade thinks that subscriptions will have the best chance of taking off if they're bundled with some other product, like ISP service.

Scoff all you want about subscriptions, but the concept keeps coming up: music industry expert Donald Passman also believes they're the best chance for the music industry to thrive in the future. Even Apple finally seems to be bending to the idea of streaming music with its acquisition of Lala, although Lala isn't a straight subscription service, but more of an online music locker with some free streams, plus fee-based individual streams.

I wouldn't for a moment think that anyone working late on something frightfully significant in Redmond would conceive of alcohol as a means to help them through their engineer's block.

But just in case there is one tortured soul who might be tempted to have a six-pack delivered to his cubicle, I have some difficult news.

i-Booze, the Seattle-based folks to whom you used to be able to turn online for a swift delivery of soothing liquids, seems to have fallen on difficult times.

For Techflash has delivered the information that not only has i-Booze failed to secure a license to sell liquor but that its enterprising founder, Karim Varela, uncorked a plea bargain on two misdemeanor charges of selling alcohol without a license and illegal possession of alcohol with intent to sell.

Isn't Epic a lovely name for a beer?

(Credit: CC Epic Beer/Flickr)

In truth, i-Booze isn't i-Booze any more. While the idea reportedly came to Varela when he was in jail for DUI, there were those who felt the name might be something of an incitement to excess. So the company recently changed its name to Dilky.com.

Which some might find a more neutral moniker, but I find my neural association membrane immediately goes to "alky."

In speaking to Techflash, Varela did not sound confident of Dilky's resurrection: "We are still working with the city and the liquor control board to regain a license, but it is a difficult battle."

Prohibition is not quite at hand, though. Anne Radford of the Washington State Liquor Control Board said the board will look into the matter over the next couple of weeks.

Meanwhile, Varela is hoping that former customers and those who would like to be current customers might lobby the board with a human rights appeal. Or perhaps offers of a free wine-tasting trip. (Some details exaggerated here.)

What hope he has, Varela is putting into the presence of a new Seattle City Attorney Pete Holmes, who replaced someone called Tom Carr.

"We feel our downfall was mostly due to ex City Attorney Tom Carr's battle against bars, clubs, and alcohol in Seattle and we just got caught up in the middle when really we're providing a beneficial service for the community," Varela told Techflash.

A beneficial service, indeed. I would happily use it were it to descend to the Bay Area. However, it might also have helped if the service had benefited from a name such as i-Pinot or i-(De)liver rather than the somewhat provocative i-Booze.

Maybe Rupert Murdoch was serious about wanting to go without Google.

Murdoch's News Corp. has initiated discussions with Microsoft over a plan to have the media company's Web content essentially delisted from the world's largest search engine, according to a report Sunday in the Financial Times that cited a person familiar with the situation. Microsoft, which owns rival search engine Bing, has also reportedly approached other media giants about having their content removed from Google search results as well.

Microsoft representatives did not immediately respond to a request for comment.

The two companies have been linked discussing a Web-search partnership in the past. During Microsoft's failed bid for Yahoo in 2008, the tech giant was reportedly in "serious" talks with News Corp. to make a joint bid for Yahoo.

Murdoch, the chairman of a newspaper, TV, and Internet empire that includes The Wall Street Journal, The New York Post, 20th Century Fox, Fox News, and Hulu, warned earlier this month that his sites may soon disappear from the search engine's listings. Murdoch accused search giants of "stealing" his company's content during a recent interview with Sky News Australia. When he was asked why he just doesn't pull his Web sites from Google's search results, he said: "I think we will. But that's when we start charging."

Murdoch and other News Corp. execs have said that they intend to charge readers and viewers for access to the company's content, forsaking the ad revenue model.

For several months, executives at some of the nation's most influential news sources, including The Wall Street Journal and the Associated Press, have been blaming Google and similar Web services for at least some of their deepening financial troubles.

Google sells ads tied to the news blurbs it "scrapes" from news sites. It links back to the Web sites from which it acquired the content but doesn't share ad revenue with them.

"Publishers put their content on the Web because they want it to be found," Google said in a statement earlier this month. "Very few choose not to include their material in Google News and Web search. But if they tell us not to include it, we don't."

Critics of the media companies' bashing Google point out that if media companies were serious about not being indexed by search engines, they could accomplish the feat on their own by adding a robots.txt file to the root of their Web site containing a simple code that would prevent bots from indexing their pages.

Yesterday, BoomTown wrote about AOL's efforts--including hiring investment bankers--to sell its ICQ instant-messaging unit.

But that's probably not going to be the end of the shedding of assets at the online site.

In fact, according to sources inside and outside AOL, one of the next candidates for sale could be its MapQuest online map service.

Purchasers of the service that provides mapping and directions, sources said, are likely to be other mapping giants, especially Microsoft.

But it is not clear if the software giant or anyone would fork over a huge sum of money for MapQuest.

That would include the $1.1 billion in stock that AOL paid for MapQuest in 1999.

AOL is set to spin itself off in less than a month from corporate owner Time Warner, and sources said selling off peripheral properties is part of becoming a smaller, more focused company.

MapQuest, like AOL's Bebo social-networking site, fits this description.

While it does have widespread distribution across the Web, reaching over 40 million users monthly, MapQuest lags well behind aggressive efforts being pushed by both Microsoft and Google.

Story Copyright (c) 2009 AllThingsD. All rights reserved.

Corporations can be heinous places. All day, people wander around, playing politics like so many Lindsay Lohans in "Mean Girls."

So today, one wonders just what machinations are being endured by Simon Aldous, the Microsoft Partner Group manager who was Wednesday quoted by PCR as suggesting that Windows 7 was rather inspired by the simplicity of the Mac OS. Indeed, Aldous declared that Microsoft's new operating system was designed to "create a Mac look."

In what appears to be a somewhat hurriedly written post on the Windows Team blog titled, "How we really designed the look and feel of Windows 7," Microsoft showed that perhaps some of its underwear is currently a little twisted.

The post read: "An inaccurate quote has been floating around the Internet today about the design origins of Windows 7 and whether its look and feel was 'borrowed' from Mac OS X."

This would suggest that Aldous was, in fact, misquoted.

However, the post, written by Brandon LeBlanc, continued, "Unfortunately, this came from a Microsoft employee who was not involved in any aspect of designing Windows 7. I hate to say this about one of our own, but his comments were inaccurate and uninformed."

"I'm Steve Jobs, and Windows 7 was my idea?"

(Credit: Stephen Shankland/CNET)

Some would therefore now conclude that he was quoted accurately, but he didn't quite get his facts right. This is entirely possible, though one might wonder why he would have made comments with a ring of such endearing honesty.

However, perhaps the most interesting aspect of this Windows Team post is a comment left by someone with the handle "i-dont-do-tat".

This commenter wrote: "I know Simon Aldous, having worked in the same U.K. subsidiary as him for a few years. He's a good guy who, for me, is telling it like it is. He's paying testament to the common view that a Mac is cool and a great template to copy."

As many in the world of business will tell you, copying happens all the time. The competition is scrutinized religiously, and the best articles of faith are taken and sometimes even improved. This happens in every product category.

The "i-dont-do-tat" poster concluded that perhaps honesty might not be such a bad thing: "Denying this to your customers just makes you look stupid because the very look and feel of Windows 7 is desperately trying to look like a Mac OS--just admit it."

Oh, of course one mightn't expect honesty in the mass-market arena. It is a very dangerous place in which to say anything at all. Equally, though, in a tech world interview, perhaps a little nod toward the opposition is not such a bad thing. It might even lull it into a little complacent smugness.

One can only hope that Simon Aldous had a good breakfast Thursday and that he hasn't endured any untoward communications. Unless it's a job offer from Apple, of course, which he should accept only if the company gives him a better deal and appears to come from nicer people.

That's how the corporate world works, you see. Like high school, it's all temporary, so you have to make the most of it while you can.

Microsoft said on Tuesday that it is merging its video search efforts with its MSN Video site into a new page that will bear the Bing moniker.

Bing Video, Microsoft said, will serve as a site for watching everything from viral videos to full-length TV shows and video, drawing on content deals with sites such as Hulu, CBS, MySpace, DailyMotion, and YouTube.

The new Bing Video page replaces MSN Video and includes both video search as well as content from sites such as Hulu and CBS.

(Credit: Microsoft)

Microsoft notes that video is now a mainstay of the redesigned MSN home page and says MSN will continue to create original programming, such as its "Last Night on TV" effort.

The branding remains a challenge though, as evidenced by a video from Microsoft's Rob Bennett talking about the changes. The video, embedded below, features a "view more on MSN Video" link that, when clicked on, takes a user to the new Bing Video site.

The new Bing Video page is part of a series of changes Microsoft is making as part of a fall refresh of its search site. Earlier on Tuesday, Microsoft made some enhancements to Bing Maps, including the ability to use the mouse to alter a suggested route and have one's directions re-calculated.

The company said to expect more announcements later this week.

Disclaimer: CNET News is published by CBS Interactive, a unit of CBS.

There are many ways of showing respect to those you don't actually respect.

So it's touching to see that Apple has not only produced a few "Get A Mac" ads to darken the hearts of those about to upgrade to Windows 7, but has also donned its Wellington boots, gone down on its knees, and offered a dig in the grubby world of search.

I am grateful to The Next Web, who discovered that Cupertino has been throwing a few grenades into Google searches such as "Download Windows 7" and "Windows 7 download."

(Credit: The Next Web)

While one naturally expects to see ads for Microsoft stores adorning these searches, Apple has slipped in ads that suggest the best way to upgrade to Windows 7 is to actually purchase something from the Apple family.

Some might find it amusing simply that Apple is using such a tactic. But perhaps others will be a little disappointed that the wording for the ad is so straight. No jibes. No subtle suggestions that Windows 7 is merely a Manchurian macrame version of Vista. Not even a hint that Windows 7 will make you more miserable than eggnog ice tea.

How sad.

SAN FRANCISCO--He wasn't on the program, but nobody was disappointed that Google co-founder Sergey Brin showed up at the Web 2.0 Summit on Thursday afternoon and agreed to sit down for an onstage chat with conference organizer John Battelle.

Sergey Brin, Google co-founder

(Credit: Google)

Battelle said Brin had been extended an invitation to speak but turned it down, to which Brin joked, "I didn't say no, I just never responded."

But it was an appropriate time to hear from one of the minds behind Google because one of the most evident trends at the conference is that the search market is heating back up. On Wednesday alone, Microsoft announced a partnership with Twitter and Facebook for real-time search results, Google announced a similar deal with Twitter, and Google executive Marissa Mayer previewed a new "social search" feature in Google Labs.

Brin talked about the new competition with a "bring it on" attitude. "I think what Bing has reminded us is that search is a very competitive market," he said. "There are many interesting companies out there." He said he's disappointed that Yahoo is retreating from the fight and planning to strike a deal with Microsoft instead.

"I think Yahoo had a number of innovations there, and I wish they would continue to innovate in search," Brin said. He didn't go into specifics.

Yahoo CEO Carol Bartz had been slated to speak at the conference on Wednesday but canceled at the last minute, citing a bad case of the flu.

Hotmail users aren't the only ones who've been hit by a phishing scheme over the past week. Google told BBC News on Tuesday that Gmail users have also been affected by the hackers who posted passwords online.

The problem is far more widespread than was disclosed on Monday, possibly affecting Yahoo and AOL e-mail accounts as well, according to BBC News.

Google described the issue as an "industrywide phishing scheme." BBC News said it has seen two lists posted online with "more than 30,000 names and passwords" from Gmail, Yahoo, AOL, Microsoft's Windows Live Hotmail, and other service providers.

"We recently became aware of an industrywide phishing scheme through which hackers gained user credentials for Web-based mail accounts including Gmail accounts," a Google representative told me in an e-mail.

The representative said that Google immediately "forced passwords resets on the affected accounts."

In an e-mail to CNET, a Google representative said that the company had to reset the passwords on fewer than 500 Gmail accounts so far. However, that figure could change.

Despite Google's and Microsoft's awareness of the problem, it doesn't seem that users are out of the woods just yet. Google's representative told CNET that it will continue to force password resets on any newly affected user accounts.

Like Microsoft, Google was quick to point out to the BBC that the phishing scheme was a "scam to get users to give away their personal information to hackers" and not an internal security issue. It didn't say how users fell victim to the scheme.

Google's admission that Gmail users were affected by the phishing scheme comes on the heels of Microsoft acknowledging that over 10,000 Live Hotmail accounts were compromised by the scam. The passwords apparently first hit the Internet on October 1.

Updated at 9:10 a.m. PDT to include Google's comments.