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.
Wow. There is money out there: a retail deals site called Groupon has raised a whopping $30 million Series B funding round led by Accel Partners, one of Facebook's early backers. Existing Groupon investor NEA, which led the company's $4.8 million Series A round in January 2008, also contributed.
Here is the gist of Groupon: there are currently editions for 26 U.S. cities. The site advertises a deal each day from a selected local establishment like a restaurant, nail salon, or gym. There's a heavy discount involved. But enough members have to opt into the deal in order for any of them to get it. Groupon takes a cut of earnings if the deal hits the "tipping point" and goes live; otherwise, the featured merchant does not have to pay.
They've been profitable since June, founder and CEO Andrew Mason told CNET. So why raise $30 million? "We want to roll out to another 50 cities or so next year," he said, adding that early in 2010 it hopes to expand to Canadian cities, "so it's just going to help us increase the rate of customer acquisition and focus on building new technology." He wouldn't say what that new technology is, but he did add that the company went from 10 to 120 employees in the past year and planned to continue to grow at that rate.
The company grew out of an existing start-up called ThePoint, which applied a similar "collective" model to community and activism projects, before switching entirely to the retail model.
Popular online shopping site Woot is set to expand its network of sites into new territory: deal hunting.
Unlike some of the site's other properties, which offer a new item for purchase either on a daily or weekly basis (be it gadgets, wine, T-shirts, or kids toys), the new Deals.Woot service gets a steady stream of things to buy throughout the day. It's also run almost entirely by Woot's community. There are sponsored deals that have been hand-picked by Woot's editors, but users do the rest.
Users can add deals they find elsewhere on the Web through a simple submission form that pulls in photos and sometimes pricing information from the source page. Others can then vote these up or down (like links on Reddit), with the most popular (be it in total votes, or in vote velocity) rising to the top.
Woot's new Deals site lets users vote up or down user-generated deals.
(Credit: CNET)To keep marketers from gaming these rankings, the site has a members-only status for the time being; users can't vote deals up or down unless they've purchased something from Woot before. The site is also limiting who can access the deals site while it remains in private beta, beginning by first inviting longtime-registered users, then working backwards toward those who have recently joined.
Along with deal submissions and the forum threads that go with them, the site is also a question-and-answer service. It's not as structured as the rest of the site, and acts simply as an open forum about deals, deal retailers, or off-topic items. It, too, has the same up or down voting system, both for individual threads and replies. Together with this and the community-sourced deals, the site tracks some of the top deal submitters and forum commenters. There, users can see which deal has been the fastest to rise to the top of the charts, as well as how long it took to get there.
Woot's Deals leaderboard gives a behind-the-scenes look at what's happening on the deal-finding site.
(Credit: CNET)Woot's upcoming deal site remains an invite-only private beta, but the company hopes to launch it officially before Black Friday (which is next week). As previously mentioned, Woot members will be getting early access invites by e-mail depending on when they first registered for one of the company's services.
See also: Fatwallet, Slickdeals, RetailMeNot, Ebates, Dealnews.
With just two weeks to go before Black Friday, online-coupon site FatWallet announced on Friday that it has launched a Black Friday page where Web users can track all the latest deals for the big shopping day.
Currently, the site lists all the latest Black Friday ads that have surfaced, as well as news and rumors surrounding the day. It also has information on Cyber Monday, the Web's big shopping day, which falls on the Monday after Black Friday.
Of course, FatWallet isn't alone in this space. Several companies, including BlackFriday.Info and DealTaker to name a few, are displaying Black Friday deals. Each site lists many of the same ads. A few of the resources provide updated news. FatWallet happens to be one of them.
If you're interested in finding Black Friday deals, check out our recent roundup of online resources that prepare you for Black Friday.
Although Cyber Monday--a big online-shopping day on the Monday following Thanksgiving--has caused some of Black Friday's appeal to slip, it's still a big day for deal-seekers.
But with the shopping day three weeks away, I'm sure you're wondering why I'm talking about it already. Well, the ads are already starting to emerge. And it's time to start figuring out where you want go and what you want to get. Use these resources to help you do just that.
Track Black Friday
Black Friday Ads Black Friday Ads features all the latest updates on Black Friday deals. The site also features buying guides and shopping lists for those who want a little more than deal-seeking.
So far, Black Friday Ads doesn't have many ads to look at. That said, you can check out details on becoming a Best Buy VIP or see what kind of deals Sears plans to offer on Black Friday. Where Black Friday Ads shines is with all the extras. You can discuss hot deals with others in its message boards, find discounts the site might have missed, and more. Keep this site on your radar when you get ready to buy on Black Friday.
Black Friday Ads updates you on all the latest ads.
(Credit: Screenshot by Don Reisinger/CNET)Black Friday Black Friday features one of the most user-friendly designs of any site in this roundup. It makes it quick and easy to find what you're looking for.
Black Friday lists all the best deals from several well-known retailers. Simply click on one of the stores' names in the right sidebar and you can see its respective Black Friday ad. When you find an ad you want to search though, I think you'll like what you find. The site lists all the deals by department. Simply scroll to the category you're looking for to find the deals you care about. Next to those items, you'll see a "plus" icon. When you click that, you can add it to your shopping list on the site. I found that it's a great way to keep track of items. I really liked Black Friday. Try it out.
Add the product you want to your shopping list.
(Credit: Screenshot by Don Reisinger/CNET)
A screenshot of the new Ask Deals feature, which will provide links to coupons atop search results for certain queries that have shopping in mind.
(Credit: Ask)Ask isn't giving up on efforts to expand its niche in the search market, this time hoping that coupon clippers will make it their search destination of choice.
Ask Deals is expected to launch Tuesday, blending links to coupons from a plethora of online coupon aggregation sites alongside search results for certain types of queries, such as "cheap jeans" or "plasma TV deals," said Scott Garell, president of Ask Networks. There will also be a link to a Deals page off the Ask.com home page, which will have a "deal of the day" type promotion as well as links to other opportunities for savings.
The company had noticed that searches for coupons on Ask increased 50 percent in 2008 compared to 2007, likely a result of the state of the economy, Garell said. But it thought it could do a better job organizing and presenting those coupons than the dozens of coupon sites have done to this point, with the added benefit of having additional information about the product come up within search results.
Ask's index is drawing from about 40 coupon sites, crawling some sites and partnering with others to bring the coupons to the service. It is also overseeing the coupon aggregation with a team of employees tasked with sorting out coupon quality.
It's safe to say that even with signs of an economic recovery surfacing, as long as the unemployment rate remains high there will be a fair amount of people interested in scoring a deal. It's less clear whether that will motivate those people to give Ask a try as their primary shopping search engine.
Despite a very public ad campaign with Nascar this year, Ask lags Google, Yahoo, and Microsoft by a wide margin according to ComScore's latest figures on the search market. And its share has actually dropped since last year, from 4.5 percent of the search market in July 2008 to 3.9 percent in August 2009.
Sony Music Entertainment's catalog is coming to indie music retail site Amie Street, in the New York-based start-up's first major label deal.
But here's the catch: Sony's catalog will not be participating in the "dynamic pricing" model that's been Amie Street's trademark--unpopular songs are the cheapest, and the price rises as a song is downloaded more. Instead, Sony songs will be available for a flat 69 cents, 99 cents, or $1.29 based on popularity.
"It wasn't a hard decision for us," Amie Street co-founder Josh Boltuch told CNET News. "This isn't affecting all the other dynamically priced music on the site." He noted that RED, the indie music distribution company owned by Sony, already offers its songs on Amie Street through the dynamic-pricing model. "Sony Music obviously has the option to experiment with dynamic pricing at their discretion," Boltuch added. "Clearly we would love to do that with them."
This isn't the first time that an indie music retailer has had to compromise to ink a major-label deal. Sony was also the first major label to bring its catalog--well, its "classic" back catalog--to subscription site eMusic. But the deal resulted in eMusic raising some of its prices in tandem.
Amie Street, which pitches itself as a way to discover as well as purchase new music, made major headlines last year when it was the only place on the Web to buy songs recorded by Ashley Alexandra Dupre, the call-girl-slash-aspiring-pop-star at the center of the Eliot Spitzer scandal.
Buzzworthy social music service Project Playlist has signed another major-label deal: EMI Music has licensed its catalog to the company, which hired former Facebook executive Owen Van Natta as its CEO in November and says that over 52 million playlists have been created to date by its over 42 million registered users.
The first major-label deal for Project Playlist was with Sony BMG, an agreement announced in December. The company had previously been sued by a number of big players in the music industry, including EMI, because of the amount of unauthorized content uploaded to its servers. The Recording Industry Association of America (RIAA) also threw its hat in the lawsuit ring, and social networks MySpace and Facebook banned Project Playlist's embeddable widgets.
Music industry sources say that the RIAA's suit on behalf of the major labels was not dropped and that the industry group is still overseeing the case even though Sony BMG and EMI are not part of it.
"It is crucial for us to continue connecting our users with more of their favorite music," Van Natta said in a release. "This partnership will provide us with a wide-ranging selection of content to satisfy our users' appetites to share and purchase music. We are excited to now have both EMI and Sony BMG music catalogs available and we hope to continue to expand and enhance our service."
There are plenty of competitors for Project Playlist in the social music space: other big players are MySpace's own MySpace Music, which reportedly had sought Van Natta to spearhead the project; Last.fm (owned by CNET News publisher CBS Interactive); and Imeem, which was rumored to be in talks with Project Playlist for a possible merger. We haven't heard much about that recently.
This post was updated at 10:28 a.m. PT with information about the RIAA's suit against Project Playlist.
In the U.S., tax season is well upon us. And with the recession in full tilt, you may be--smartly--biding your time to make a purchase. Fear not though, there are tools aplenty to help you keep an eye on the price of something, and swoop in to get it when it goes on sale or the manufacturer offers a rebate.
We've put together a list of 22 different tools that let you do this with relative ease. Most only work on Amazon.com, but a few will keep an eye on the entirety of the Web to let you know about sales, price drops, and increases.
(Credit:
Josh Lowensohn/CNET)
Amazon Price Watch (aka NukePrice.com)
Amazon Price Watch may sound like it's only Amazon.com prices, but it actually works with around 100 online retailers. You can have it watch the price of something by dropping its link into the service's Web form, or by installing a browser add-on that lets you start tracking from the retailer's site. Along with price-watching tools, it's also got a deals finder and a "filler items" tool that will help you find low-priced items to add to your Amazon order to get free shipping.
Apnoti
Apnoti watches Amazon for price drops. You can use it either by dropping in the Amazon product link and your e-mail address or installing a tool bar that adds the option to watch a price to Amazon.com. One of Apnoti's strengths is that it refreshes its price index "continuously" so you can be notified when a price drops usually within the hour.
BeatThat!
BeatThat is primarily a deals site that lets users add deals they've found in return for cash. However, each product on the site can be watched to see if it drops below whatever price threshold you set. Like PriceGrabber you must be a registered user of the site to make use of this feature.
Buy it Later
Buy it Later is a tool that's been designed specifically for Amazon.com. You install a small browser add-on, which will add a new button to Amazon product pages that lets you opt-in to buy it at a later date. Once you click this the tool will start tracking the price. It also gives you the heads up when an item comes back in stock, which can be useful if you're looking to buy something with a low supply.
CamelCamelCamel
While camel imagery does not bring price watching to mind, the site does a great job at it. You can search items on Amazon and a few other retailers. It's also got a great grid of products that have had the biggest price drops by day and week both in dollar amount and in percentage. One of the most important things the site does, however, is show you a price history from the past month both from Amazon and third-party retailers. This is a good way to see whether a price is trending up or down, although admittedly its charts can be thrown off by gray market listings.
If you're a regular reader you know I'm a sucker for deals sites. Enterprising iPhone developer Joseph Kiok is too--enough of one to write an app called FreshDeals that keeps tabs on 15 different deals sites to help you find and track the latest bargains.
While something like this would have probably been a better idea pre-economic downturn, one thing it excels at is weeding out the old deals from the new. The sites are refreshed every couple of minutes, and in turn each deal is given a time stamp and a rating from "fresh" to "freshest." The newer a deal the better a chance you have at nabbing it before it expires or the retailer runs out of stock.
There's currently no way to bookmark deals you like, or search any of these sites based on product or keyword, however you can send any item you're interested in as an e-mail--either to yourself, or someone who you think would find it useful. There's also an integrated browser, so you can look at the details of each deal without leaving the app.
In future versions of the app I'd love to see a search tool and, when Apple pulls the trigger on the notifications service, a way to get notifications when a keyword or product you bookmarked goes on sale. You can do this with a customized Google alert and some special e-mail handling rules, but it would be great to get it in a package like this.
FreshDeals is 99 cents and can be found in the app store (iTunes link)
FreshDeals lets you see the latest deals on more than a dozen popular deal-finding sites.
(Credit: CNET Networks)
