This one's a surprise. Twitter will have turned a profit in 2009, a BusinessWeek report claims, citing sources. What happened? Search deals with Google and Microsoft brought in a nice chunk of cash for the company, which has raised well over $100 million in venture capital and has a paper valuation floating somewhere around $1 billion.
Considering the company has not yet put forth a long-term revenue strategy, this would be one of those Christmas miracles along the lines of a neurotic mom getting home to her stranded 8-year-old by fortuitously hitching a ride with a polka band fronted by John Candy.
So let's look at the details. Sources told BusinessWeek's Spencer Ante that Twitter's search deals with Google and Microsoft's Bing brought in $15 million and $10 million respectively, and that Twitter has managed to cut some of the high costs related to text-message functionality. (These costs were so exorbitant that Twitter temporarily had to restrict some international SMS codes.) OK, cool. Those numbers are decently plausible, and Twitter's strategic hire of a mobile business-development dude early this year likely had something to do with it. And Ante's article makes it clear that while sources have told him that Twitter will end 2009 on a profitable note, that doesn't mean it's going to be profitable next year.
But there's a difference between being cash-flow positive and being profitable, and it's also not totally clear as to what Twitter's other expenses are, or what they will be next year.
Ante writes:
Now that Twitter has become so popular, it has gained bargaining power with telecom companies and has managed to renegotiate so many deals with carriers that the company pays far less for the services. "Those used to be the biggest line item," says one source. "Generally speaking, those costs have gone away. Now people are the biggest line item."
People. Yes. Like the new office space they just moved into, and their still-expanding payroll, and stuff like that. Also: hardware, and other forms of defensive weaponry against evil whale attacks. The company also sometimes buys stuff, and continues to develop new features--like the current test of "contributors" accounts that it may end up charging for. So even with costs cut via a savvier mobile strategy, there are plenty of other costs that could be escalating simultaneously.
What's good news for Twitter is that getting $25 million out of search deals (if that's indeed true) shows that the company could expand that into a stronger long-term revenue strategy. Critics have been lukewarm on the possibility of Twitter attempting to support itself with advertisements or paid accounts, and nobody's really gone into depth on the question of whether the businesses currently raving about Twitter's power of "conversation" will cough up for more in-depth analytics.
What Twitter's homepage looked like before it went down on Thursday night.
(Credit: CC u07ch/Flickr)Twitter stumbled again overnight on Thursday. But this time, it wasn't the work of the "fail whale," the cuddly cartoon personification of the site's excessive technical baggage. Rather, the site was replaced with a foreboding message from "Iranian Cyber Army" before crashing entirely, indicating that it had been the victim of a malicious attack that targeted its internal servers.
Co-founder Biz Stone posted a brief clarification on the issue late on Thursday night. "Twitter's DNS records were temporarily compromised tonight but have now been fixed," he explained. "As some noticed, Twitter.com was redirected for a while but API and platform applications were working. We will update with more information and details once we've investigated more fully."
At the risk of sounding like an evening-news anchor calling attention to exactly how dangerous your treadmill is or how many diseases you can get from the ball pit at Chuck E. Cheese, I think it's time to explore the question: Is it safe to use Twitter?
For one, Twitter's track record with security has been shaky at best. A security flaw this spring exposed the data of a number of employees and allowed a hacker to pilfer some internal documents. Several high-profile accounts, like those of Britney Spears, Ashton Kutcher, and CNN anchor Rick Sanchez, have been targeted individually. Twitter has been the victim of phishing attacks. Other hackers have proved that Twitter accounts can be set up specifically to corral botnets of infected PCs. And in perhaps the biggest incident of all, a politically motivated denial-of-service attack in August that targeted multiple social-media sites managed to cripple Twitter entirely.
Think of it this way: if Facebook, a far bigger and more mainstream site that's had concerns about user privacy splashed all over the news recently, saw its homepage replaced with a nefarious political message, there would probably be a fresh round of calls for CEO Mark Zuckerberg's resignation. Twitter's heavy users are, for better or for worse, accustomed to sporadic downtime and glitches. They're also less likely to ever visit the Twitter.com homepage, considering the service has so many points of entry--text message, as well as third-party apps for mobile, Web, and desktop. Users have become accustomed to logging into third-party applications with their Twitter credentials.
That, perhaps, makes the overnight hack a bigger concern. Even though it's unlikely that user accounts were compromised in this DNS redirect, it's yet another sign that Twitter's security operations have time and again proven weak enough that the service doesn't exactly seem watertight.
A political message, or just plain obnoxious?
On the other hand, we still don't know much about this attack and it may have been less sophisticated than some may fear. One, nobody's exactly sure yet who the hackers were. "Of course, just because a message saying 'This site has been hacked by Iranian Cyber Army' has been posted on a Web page does not necessarily mean that hackers from Iran are responsible for the defacement," Sophos security consultant Graham Cluley wrote on his blog Friday.
Additionally, Cluley said, the aim seems to have been to either get a political message through or to simply be obnoxious. "Fortunately there is no indication at this point that the page was carrying malicious code, and this attack appears to have had political motivations rather than being designed to steal confidential information from users," he wrote.
"It really looks like it was people were redirected to a 'hactivism' site," weighed in fellow Sophos analyst Beth Jones via e-mail. "There was no malicious code on the site claiming to be the 'Iranian Cyber Army' either. It looks like they just hacked the registrar to redirect traffic. So it's quite probable that none of Twitter's own servers were touched."
Another reassurance is the fact that Twitter simply doesn't have the kind of sensitive data that a Facebook or Google does. While it does have millions of mobile phone numbers stored to power its text-message app, not to mention archived private "direct messages" between users, Twitter does not index a whole lot more that isn't otherwise public. Facebook, for example, has many members' credit card numbers on hand (if they've ever used its "gift shop" feature), not to mention extensive personal data in profiles like addresses, birthdays, and family connections. Members who are still concerned about the security of their Twitter accounts can take the obvious step of changing their Twitter passwords to something that they don't use on their e-mail, Facebook accounts, or elsewhere--just in case.
Beth Jones says she has confidence in Twitter. "I wouldn't say their security is second-rate by any means," Jones said via e-mail. "As it stands, they weren't actually compromised, but I can see from a user point of view the questions and concerns. At Sophos we see a new site compromised every 3.6 seconds. That's easily close to 24,000 sites a day, and of those, the vast majority are legitimate sites that get hacked."
That doesn't mean that Twitter shouldn't start making it more clear that it takes security seriously. If the company, which is now beta-testing a "Contributors" feature that may pave the way to paid corporate accounts, begins storing financial information, we can only hope that their security operations are turned up a few notches. Or, ideally, an order of magnitude.
This post was expanded at 6:23 a.m. PT with comment from Sophos' Beth Jones.
A look at the Zune HD Twitter app in action.
(Credit: Screenshot by Donald Bell/CNET)It has only been available for a day, but already the Zune HD's Twitter app is being updated after it was criticized by users for automatically abbreviating explicit words in users' tweets. It doesn't even give them the option of determining when or which words should be censored.
As you might expect, the Web is overflowing with unhappy users. Commenters on the Slashdot entry discussing the censors were up in arms over the feature. Quite a few of those folks echoed "rocket97's" comments, who said that the "[censors] should be an option, not a requirement." Others took the opportunity to (you guessed it) censor curse words within the comments to voice their protest.
They might have a point. Twitter itself doesn't censor any tweets that contain curse words. Even Twitter clients like TweetDeck don't censor tweets or direct messages from Twitter users.
It didn't take long for Microsoft to respond. After seeing that users were having issues with the application, Microsoft admitted that the app does indeed censor explicit tweets. It also said in an e-mailed statement to CNET News that it plans to rectify the situation soon.
"The recently released Twitter for Zune HD application has been abbreviating some explicit words in tweets when viewed on the device," a Microsoft spokesperson admitted to CNET News. "However, these explicit words do appear in their full text on the Twitter site or on any other Twitter client. We have identified the issue and are taking steps to update the application as soon as possible to ensure Twitter for Zune HD users are able to view tweets in their original state."
If you're interested in learning more about the Zune HD Twitter app, you can check out our hands-on by clicking here.
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.
Iran's elections topped Twitter's list of most popular topics of 2009, according to the microblogging site.
"Among all the keywords, hashtags, and phrases that proliferated throughout the year, one topic surfaced repeatedly," the company wrote in a blog post Tuesday. "Twitter users found the Iranian elections the most engaging topic of the year. The terms #iranelection, Iran and Tehran were all in the top-21 of Trending Topics, and #iranelection finished in a close second behind the regular weekly favorite #musicmonday."
The fact that Iran's elections rose to the top on Twitter is noteworthy because Twitter itself became a tool for organizing post-election demonstrations in Iran.
In the category of top news topics on Twitter, items related to the Iranian elections and swine flu took five of the top six spots for the year. They were followed by Gaza, AIG, and President Obama's inauguration.
A look at the top trending topics of 2009 on Twitter.
(Credit: Twitter)Among the most-discussed people of the year, Michael Jackson took the top spot. He was followed by singing sensations Susan Boyle and Adam Lambert, respectively. Kobe Bryant, Chris Brown, Chuck Norris, Joe Wilson, Tiger Woods, Christian Bale, and Alex Rodriguez rounded out the top 10 most-discussed people of the year on Twitter.
"Harry Potter" was the most engaging film of the year for Twitter users, followed by "New Moon," "District 9," "Paranormal Activity," and "Star Trek."
"American Idol" was the top television show on Twitter, followed by "Glee," the "Teen Choice Awards," "Saturday Night Live," and "Dollhouse."
On the tech side, it was Google Wave that engaged the most Twitter users, followed by Snow Leopard, Tweetdeck, Windows 7, and CES.
I'll be the first to admit that I'm a hardcore gamer. I play games as often as possible. But for the most part, I play those games on consoles. But over the past couple days, I've started playing some Twitter-based games on the Web. Many of them aren't very good, but I found three titles that I really enjoyed playing.
Because of that, I've decided to share those with you in this roundup. Each title is offered on its own site, but requires your Twitter credentials to work. Whenever you achieve things within a game, it notifies your Twitter followers. The experience is fantastic. Let's check them out.
Twitter-based gaming
140 Mafia: If you're a fan of "The Godfather," you might be attracted to 140 Mafia. Although it doesn't follow that movie closely, it does a great job of keeping you engaged in the title.
When you sign up for 140 Mafia, the game gives you the option of choosing what can be sent to your followers from the title and what cannot. I liked having that option. From there, you find out that you've been asked by "The Godfather" to start your own mafia crime family. You need to recruit other Twitter users into your family, while engaging in criminal activities to build your coffers and notoriety.
140 Mafia determines your effectiveness based on your attack ability, your energy, your ability to defend yourself, and a few other metrics. To build those up, you'll need to go on missions that involve illegal activities, like burglary or theft. The point of the game is to build a big, strong mafia family that you can control. It's no simple task and it will take a while. I should also note that the more followers you have, the greater the chances that you'll be able to succeed at this game, since a key component is to recruit other Twitter users.
Overall, 140 Mafia is a really fun game. It won't get your blood pumping like Grand Theft Auto, but it should help you pass the time.
140 Mafia allows you to create a mafia family and run it.
(Credit: Screenshot by Don Reisinger/CNET)
One of the hottest use cases for Twitter, as you well know, is businesses communicating with their customers or potential customers. Up to this point, Twitter really has not introduced any new features to support these business users, but as a part of an initiative to roll out more business-specific features, Twitter on Monday introduced "Contributors." Contributors allows business accounts to designate other Twitter users, usually employees or PR, to tweet on their behalf. Twitter is currently testing this with "a limited subset of folks."
The screenshot above is what this new feature will look like, according to Twitter's blog. Tweets will still appear as coming from the business' Twitter account but will have a byline that credits the author of the tweet. This will help to put some more personal faces behind the generally faceless business Twitter accounts.
As far as we can tell, however, this will not be required for Twitter business accounts, so if you run a business that wants to keep its tweeters anonymous, you can still do that. Twitter does note that this feature is "not ready for prime time" yet, so the functionality could change around a little, but expect it to stay generally the same.
It's worth mentioning that there are a couple of business and power user-oriented Twitter apps out there right now, specifically CoTweet and HootSuite. This added Contributor functionality will be incorporated into Twitter's API, so these third-party apps should be able to support it as well. This new feature should play nicely with CoTweet and HootSuite's current offerings.
Up to this point, Twitter business accounts have had the same functionality as personal accounts. While it's not clear whether personal accounts will get the new Contributor feature, the release of this and the other business-oriented features that Twitter currently has in development might be a sign that the release of Twitter business accounts is imminent.
In August, Biz Stone said that Twitter would be offering business or "pro" accounts by the end of the year. Paid accounts for businesses has long been a rumored business model for Twitter and it looks like we are on the verge of seeing that come to fruition. While Twitter is running out of days in 2009, it appears that it is making some progress toward the eventual release of full-blown business accounts. Whether Contributors will be included in the paid offering is unknown, although some users might resent Twitter for charging for it after offering it for free initially.
Twitter-centric photo sharing service Yfrog released its top 10 searches of 2009 on Monday, and the results are not all that shocking; It appears most of its users are hunting for tween-heartthrob vampires, and/or famous singers. Below is the full list. I've linked each query with a search on Yfrog:
1. New Moon / Twilight
2. Jonas Brothers
3. Tiger Woods
4. Michael Jackson
5. Halloween / costume
6. iPhone
7. Adam Lambert
8. Kanye West / RIP Kanye West
9. Iran election
10. Miley Cyrus
To put this in perspective, Yfrog's list shares only the terms "new moon" and "Michael Jackson" with Google image's top 10 results of 2009, at least according to the recently-released zeitgeist. Also worth noting, is that Imageshack launched Yfrog in late February of 2009, meaning this list is more like the top 10 search results during the last 10 months.
Honestly, I'm just happy that image searches for the Iran elections beat out those for Miley Cyrus.
Previously: Yfrog gets Webcam recording for photos and video
TwitVid, a free video host for Twitter, is launching two new, useful features on Monday. The first is a real-time search engine that will let users sort through videos both on TwitVid and YouTube. The other is an analytics engine that lets video owners know more about who is watching their uploaded clips, and where they're from.
Between the two, TwitVid and Twitter users are likely to get more utility out of the new search engine. Similar to what OneRiot has done with its own real-time search engine, TwitVid's approach takes into account how fresh the video is, along with whether it's been popular on social sites. Recently popular videos then get better real estate on the results pages. It's a big step up for TwitVid users, who up until Monday had no way to search through videos other users had uploaded on the site.
As for the new analytics tools, TwitVid breaks down some very basic information, including when people were watching your video. This is charted out down to the hour, day, week, month, and the total lifetime of that video. The service also shows where your viewers are coming from--or at least the top 10 locations. Included as part of that list are links to the top referrers, which can show you if your video got picked up somewhere.
TwitVid made its debut in March and competes with TwitVid.io (not .com), TwitLens, Twiddeo, Twitc, Posterous, and Tweetube--just to name a few.
Previously: TwitVid app lets you send iPhone videos to Twitter
The new analytics features let video owners see where their videos are being played as well as information on the people watching them.
(Credit: TwitVid / CNET)
Yahoo is ready to integrate real-time results from Twitter directly onto its search pages.
(Credit: Yahoo)Not to be outdone by its rivals, Yahoo is getting into the real-time search business as well.
Days after Google announced its plan for integrating content from sources such as Twitter and blogs, Yahoo on Thursday plans to launch its own feature to integrate tweets into search results. Microsoft already displays Twitter results for queries placed on its Bing search engine, although they displayed on a separate page that is not directly integrated into the main search results.
Yahoo will join Google witih integrated results as of Thursday, said Larry Cornett, vice president of product management and design at the company. But in a crucial difference between the two approaches, Yahoo has not cut a deal with Twitter for access to the "firehose," an automated feed of data from Twitter. Instead, it's using Twitter's public API and adding its own algorithms to figure out which tweets are most relevant to the query.
The thorniest problem with real-time search is relevancy. So much content is created every second on the Internet--from tweets to status updates to new blogs to new news stories such as this one--that it's a challenge to simply capture that data, let alone decide which sources of data are more relevant and authoritative than others.
Yet there's clear demand for answers to the question, "What is happening right this second?" And search engines are presumably in the best position to deliver those answers, but unless they are able to find a way to harness the flood of real-time information and make sense of it, these services are unlikely to be very useful.
For hot topics, such as Obama or Tiger Woods, Yahoo plans to use the Twitter tab it added to the News Shortcut feature already found in Yahoo search results. For other topics that are gaining traction but don't necessarily have a huge amount of news, photos or videos already associated with that query, Yahoo will surface three tweets related to the topic and chosen by its algorithms, Cornett said.
The main problem with Yahoo's approach is that it's not exactly real-time: the most recent results surfaced during a demonstration were 15 to 20 minutes old, and the user must manually refresh the page to get new results. Google's approach not only refreshes automatically due to its use of Twitter's firehose feed, but it also brings in content from sources other than Twitter.
The other major problem for Yahoo, of course, is that its search share is dropping, something Yahoo CEO Carol Bartz blamed on expiring toolbar deals during an investor conference Tuesday. While Yahoo says it is committed to remaining a player in the search market by coming up with new ideas for search presentation, this week shows just how easy it is for Google to take a similar idea (real-time search) and put out a similar-if-not-better take on the same idea.
Twitter is working on a fix for a problem that has caused some of its users to receive tweets in their timelines that were meant for other parties, the company announced on its status page Wednesday.
The issue started earlier this week, when Twitter received some reports from users saying that tweets were cropping up in their timelines that didn't seem intended for them. Twitter asked for help from users on Tuesday on its Known Issues page. The company requested that users experiencing the tweet misdirection issue include their username, the "stranger's" username, and a link to the stranger's tweet.
A look at some of the issues users are having.
(Credit: Screenshot by Don Reisinger/CNET)The issue seems rather widespread. The post is littered with comments left by users that have been affected by the problem. Even those with protected accounts have received misdirected tweets.
For now, Twitter has yet to find a solution to the problem. The company wrote a quick entry on its status blog on Wednesday, saying "some users are seeing tweets (that aren't retweets) from users they do not follow." It pointed users to the Twitter issues page and said it is "working on fixing the underlying cause."
Twitter did not immediately respond to a request for comment.
If you're experiencing the misdirected-tweet problem, you can let Twitter know here.
We'll update this space as we learn more.
