The Social

NEW YORK--You had two options if you wanted to hang out with Digg founder Kevin Rose at the Web 2.0 Expo conference this week: head over to the lobby bar of the trendy Standard Hotel on Monday night, where Digg was picking up the tab for several dozen of the city's blogger elite; or pack into Manhattan Center Studios on Tuesday night along with about a thousand other young, predominantly male New Yorkers for a live taping of Rose and co-host Alex Albrecht's "Diggnation" video show.

Geek heroes: Jay Adelson (left) and Kevin Rose in a screenshot from one of their regular 'Digg Dialogg' videocasts with Digg users.

Those are, after all, the two Diggs. There's Digg the company, the name that first put "social news" into the mouths of New York media both old and new, the BusinessWeek cover story that established the shaggy-haired Rose as digital media's poster boy, the start-up that was once talked about as a huge acquisition target for the likes of Current Media, News Corp., and even Google amid CEO Jay Adelson's coy insistence that it wasn't for sale. But then there's Digg the brand: haven for the wackiest of the Web, with a front page dominated by anything Apple, oddball science, insidery tech and politics news, and the latest YouTube sensations. It's a dual identity that seems to be tough for the industry, or the five-year-old company itself, to reconcile.

At the Web 2.0 Expo, both Diggs--and the tension between them--was on full display in a dual keynote by Adelson and Rose on Tuesday afternoon. And the executives were both vocal about the fact that Digg has got to change.

"We're about 40 million users today, (with) about 20,000 submissions a day going into the Digg system," Adelson said onstage. "It's certainly achieved huge things for us. It's what we've set out to do, but we have a ways to go."

Rose added, "We've pretty much stayed the same over the last couple years."

There's a revamped Digg coming, a complete overhaul using the Cassandra database management system, which was developed and then released as open source by Facebook. In the new version will be "instant Digging" that doesn't require registration or a login, better filtration of topics to fit any number of niche interests, and a "smarter" way to gauge story popularity so that both the number of "diggs" and the number of times a link was submitted in the first place are taken into account.

Adelson told CNET later on Tuesday, just outside the auditorium where hundreds of rowdy young Diggers were awaiting Rose and Albrecht to walk onstage for the live Diggnation taping (a co-production of Revision3, the video outlet that Rose and Adelson also co-founded), that this will arrive in the first half of next year. "I can't say with certainty when, because there are so many infrastructure components that have to come first," he said.

This talk of change and versatility is exactly the message that the San Francisco-based Adelson and Rose want to convey while they're visiting New York, the center of the global publishing industry. This is Digg the media company on parade, the Digg that picked up the tab for the cocktail-swilling media insiders at the Standard on Monday night; and this is the Digg that's taken a bit of a beating recently. True, its traffic isn't plummeting, and by most measures continues to grow at a decent pace, but as a news-sharing destination it's been eclipsed by both Facebook and Twitter.

Digg's once-gossiped-about valuation may have taken a hit simply because the market for social news has grown so saturated, and as a result the company is no longer a novelty. Take third-party Twitter app TweetMeme, for example, which takes the links shared all over Twitter in "retweets," and compiles them into something that looks an awful lot like Digg. Or the likes of Yahoo Buzz, which haven't proven to be as popular or ubiquitous as Digg but which proved that it's not particularly difficult to build your own social news service.

"It makes me very proud," Jay Adelson said of the Digg influence evident in TweetMeme buttons and, now, Facebook sharing buttons. He added, "I think that the sophisticated publisher understands the difference between sharing within a social network, sharing on Twitter, and sharing on Digg."

Influential, sure. But when it comes to making a lasting footprint in the media world, Digg hasn't yet been able to get past the common wisdom that the footprint in question will be from a beer-soaked Converse All-Star. And that's the Digg that was showcased on Tuesday night as Rose and Albrecht, both in trendy fitted plaid shirts, received a rock-star welcome for Diggnation.

More than a thousand people had showed up at the Manhattan Center Studios venue, a smaller crowd than the show's last taping in New York, but a company rep pointed out that the previous taping had been in the summer, and this one was on a school night. Someone in the audience excitedly waved a sign that said "WINDOWS 7 FTW!" (That's "for the win," in case you stepped in late.) Another sign read "I SKIPPED CLASS FOR THIS!" and still another, which Rose and Albrecht seemed especially proud of, was a green sign that read "GO HIPPIE!" with a massive, hand-drawn marijuana leaf.

Adelson says that the company's merry band of fanboys--yes, most of them are male--doesn't get in the way, strategy- or image-wise.

"Our core Digg enthusiasts frankly provide a tremendous amount of our feature ideas and feedback, and are the ones that we can count on to be there even when we screw up," Adelson told CNET on Tuesday night. "I don't think they hold us back. I think that's the power of the product."

Kevin Rose's essential Diggnation props: Mac laptop, open bottle of beer

(Credit: Revision3)

There have been some good signs. Adelson says that Digg's experimental advertising system, in which unpopular ads are penalized with higher costs ("We charge the advertisers more money when their ads start sucking," Rose explained in the Web 2.0 Expo keynote) have been a runaway success. The company also absorbed a Rose side project, Twitter directory WeFollow, which could have interesting implications.

Their mission is still precarious. The hordes of Digg loyalists propelled the company to fame, but they're known to be volatile: if they hate something, they'll make it obvious. In 2007, when Digg pulled down a number of news links in response to a cease-and-desist complaint (the links directed to instructions for cracking a digital rights management code in the now-defunct HD DVD format), avid users flooded its system with even more links to the code. Digg admitted defeat, and restored the censored links. Earlier this year, when a new URL-shortening feature called the DiggBar garnered a negative reaction, the company made some significant modifications. If they don't like the yet-to-be-unveiled Digg revamp, it could get really ugly.

But perhaps the most difficult part of Digg's dual-identity wrangling is the fact that the company's executives and figureheads really do seem to have an affinity for its mischievous roots. Take Tuesday night, when a few excited audience members at the Diggnation taping started waving around the pink tickets they'd received from local cops for downing booze while waiting in line outside to see the show.

"Open container in line? That is awesome!" Rose exclaimed, reaching for one of the tickets and displaying it in front of the crowd.

Co-host Alex Albrecht chimed in. "You should get that framed!"

NEW YORK--Web pioneer and conference honcho Tim O'Reilly warned the audience at the Web 2.0 Expo here on Tuesday afternoon that he thinks "we're headed into another ugly time." Namely, everybody is just being really nasty to each other. And it makes his hippie soul hurt.

For example, Rupert "Dr. Evil" Murdoch keeps threatening to pull News Corp.'s pay wall-guarded content from Google, perhaps offering an exclusive deal to another search engine for one hundred billion dollars (give or take a few bucks).

Those ubiquitous URL-shortening toolbars are throwing Web addresses behind a cloak of invisibility, O'Reilly said, and they "don't let you navigate freely like the Web used to work." With Google's Chrome hurling itself into the mix, the browser and operating-system wars are starting to look less "Mean Girls" and more "Aliens vs. Predator."

But O'Reilly's attitude isn't "bring it on, and get me a large popcorn with extra butter, while you're at it." Rather, he hinted that at least in some cases, he's willing to embrace Google as a big, cuddly, benevolent dictator in the midst of it all. It's "a monopoly that's a service of value to users," he said, adding that generally, when Google makes a product with the primary goal of one-upping the competition--Knol vs. Wikipedia, Checkout vs. PayPal--it's not a success.

That's probably because, at least right now, among all the giant robots stomping about the series of tubes, Google is the one that most resembles O'Reilly's vision of the "open Web." In a blog post prior to his speech, he predicted that Microsoft could take over this role. Or not. Either way, he insisted that "it's time for developers to take a stand."

Setting off this kind of electric shock in the Web's punditocracy is a great way to drum up attention and newsworthiness that doesn't have anything to do with philosophizing about the recession, extolling the possibilities of the real-time streaming Web, or predicting which dot-com figurehead is going to be the most plastered at South by Southwest this year. Thank goodness! That stuff was getting so boring!

And O'Reilly's rallying cry has already gathered reactions. Barbarian Group executive Rick Webb, for one, posted a colorful retaliatory blog post, in which he said that "setting aside the 'boo hoo, the Internet is becoming a bunch of walled gardens' arguments, when rational people have conversations about how to make the Web actually usable and not 95 percent piracy, spam, and fraud, almost every discussion starts with the proposition that there is no other realistic option but to chuck the whole thing and start over."

Of course, the Web should be in a state of "war." When have things been any different? It's a hub of innovation, competition, and constant change, and I think we all knew that already. The barrier to entry is low enough so that if there's a glaring problem with something, users will flock to whoever can create a better alternative. In fact, O'Reilly brought that up on Tuesday, when he talked about expensive in-car GPS navigation systems.

"The turn-by-turn directions from TeleAtlas cost $99 [on the iPhone], but Google is giving it away for free. This is a natural kind of extension for Google. I don't think Google is being evil here by being disruptive," O'Reilly said. "That's a massive user win, even though it is incredibly damaging to some existing companies and some existing business models. When Google offers free speech recognition, [that would be] an amazing win."

Is that legitimate innovation? Yes. But let's hope the "win" doesn't stop there. If Google manages to throw a sucker punch to Apple, Microsoft, or whoever else by offering something once-pricey for free, I should hope that the rest of the industry makes sure that it doesn't grow too complacent.

So let's get this straight: monopolies are bad, unless they're "nice" ones on behalf of companies that extol the virtues of Razor scooters, wheatgrass smoothies, and lava lamps. Competition is great, as long as everybody's nice to each other.

Doesn't quite make sense to me. But, hey, it's his show.

Facebook chief operating officer Sheryl Sandberg has something to smile about at the Web 2.0 Summit (onstage with conference organizer John Battelle).

(Credit: James Martin/CNET)

SAN FRANCISCO--That was quick.

The hardcore optimism was back, and so were the open-bar parties, at the annual Web 2.0 Summit event this week--where a ticket price of over $4,000 for the three-day O'Reilly Media and TechWeb event hadn't fazed the sold-out crowd. Just about every big player on the Web had a high-profile executive speaking (well, except for Yahoo, because CEO Carol Bartz cancelled her Wednesday keynote, citing the flu), and the mood was clear: Economic recovery is on its way, and we're going to be ready.

Are we really past last year's financial crisis, or are we just sick of hearing about it? Or perhaps, with the Web 2.0 Summit's focus on the biggest of the big, did the industry come across as healthier than it actually is?

Sure, in a talk on Thursday morning, economist Austan Goolsbee cautioned conference attendees that the country is "still in a fairly deep recession." But gone were the do-gooderism and dreamy futurist thinking of last year's Web 2.0 Summit, where speakers like former Vice President Al Gore and cyclist-activist Lance Armstrong addressed an audience shell-shocked both by the economy's downward spiral and the once-unthinkable election of Barack Obama, something that left the liberal-leaning Valley set simultaneously thrilled and overwhelmed. The Web 2.0 Summit this year was not about vague possibilities of the future, or solemn acceptance of difficult times, but about everything good happening right now.

Dramatic unveilings ruled the show. On Wednesday a parade of announcements took over the conference stage--Facebook and Twitter partner with Microsoft's Bing! MySpace launches a music video portal! Google has a social search project!--and on Thursday, Google co-founder Sergey Brin strolled into the conference venue for an unexpected talk. AOL CEO Tim Armstrong seemed to want to hop on the big-surprise bandwagon, too, assuring that the company has been readying "a fairly substantial shift in our technology" but declined to say much more.

It didn't stop there. Morgan Stanley analyst Mary Meeker, a Web 2.0 Summit regular--not to mention someone who took a lot of heat for overhyping tech stocks during the dot-com boom--gave a presentation about the health of the industry where she painted the tech industry as a bright spot in the still-faltering economy and talked up the huge potential for growth in the mobile space. Tom Hale, chief product officer at "Second Life" manufacturer Linden Lab, essentially laughed in the face of critics by pulling out the numbers: the virtual world, which many in the mainstream press have long since written off as a haven for bizarro-world subcultures, expects to chalk up $500 million in user-to-user transactions this year and its membership recently reached 1 billion hours collectively spent "in-world."

"The Linden dollar has been very stable compared to the U.S. dollar, which is very unstable," Hale joked.

The good-times-are-coming-back attitude extended to the after hours, too. A Microsoft party celebrated two of Redmond's latest hatchlings: the Bing search engine and the Windows 7 operating system. A MySpace-hosted concert hailed the social site's music-centric revamp with a performance by Weezer; the downtown Regency Ballroom flooded with young hipsters who quite likely didn't know how to tie their shoes when the band released its debut album in 1994. And an official Web 2.0 after-party on behalf of venture firm Canaan Partners, which has backed the likes of DoubleClick and Match.com, appeared to be celebrating the fact that in the tech industry it's OK for adults to throw back glasses of champagne and play with orange Silly Putty and glow sticks. (Both of those, as well as copious amounts of alcohol, were distributed at the soiree.)

But it's not over yet. Two of the big companies with executives in the Summit lineup, MySpace and AOL, have yet to prove that their much-talked-about reinventions will actually be successful. Audience members whispered to one another that Twitter's "fail whale" error message was rearing its head on occasion during the conference, a sign that the mega-hyped poster child of the real-time Web still has a few kinks to iron out.

The Web 2.0 Summit is by nature a tableau of bigwigs: CEOs, politicians, big-think inventor types. And the whiz-bang announcements emerging from it came from the likes of Microsoft, News Corp., and Google--and they were, for the most part, deals rather than legitimate technological innovations. With a few exceptions--red-hot geo start-up Foursquare, well-connected dictionary project Wordnik--there was very little at the Web 2.0 Summit that came from legitimately new companies and ideas. There wasn't much of a presence at the conference, whether in the audience or on stage, for the small- and medium-sized businesses that are responsible for so much of Silicon Valley's spirit, the ones who keep the tech industry a whole lot more interesting than boardroom suits.

It's worth noting that small companies aren't sitting on $22 billion in cash or have Steve Ballmer's phone number on speed-dial. And some of them might have a very different song to sing with regard to the health of the industry. Venture dollars are still closely guarded, and ad-supported business models don't look anywhere near as sunny as they did in 2006.

Where were the start-up guys? Playing poker, apparently.

(Credit: Julie Blaustein)

Where were the small players? Probably at their offices conducting business as usual. A handful chose to indulge in a $150-a-head event on Monday night that featured a dinner, networking mixer, and poker tournament at one Valley investment banker's Tudor mansion in nearby Los Altos Hills, organized by the SF New Tech Meetup group. The crowd, a mix of small-time start-up guys, a few perennial scenesters, and a handful of legitimate dot-com era veterans, largely wasn't planning to attend Web 2.0 Summit later in the week. It's not all that relevant to start-ups anymore, some commented over the pre-poker dinner.

Others expressed outright scorn at the idea of ponying up four grand for a conference. "Never underestimate how much money is squandered simply because there was someone borderline sociopathic managing it," remarked one who asked not to be identified.

Vocal opposition to the big-ticket conference circuit isn't anywhere near universal, of course. This year, with the impressive speaker roster and barrage of announcements, it seemed like an especially productive affair, and talk of economic recovery kept things buoyant. But after everything the industry's been through in the past year, sometimes talk can just seem like, well, talk. You fork over a few G's, you watch a bunch of billionaires chatter about innovation, you exchange some business cards or LinkedIn contact requests over lunch, and sometimes you get so caught up in it all that you aren't even really sure what you paid for.

"I'm completely exhausted," said a consultant who'd flown in from the U.K. for the whirlwind event, a few yards away from the open bar at the Web 2.0 Summit closing cocktail reception on Thursday afternoon. Gesturing to the glass of wine in his hand, he added, "I'm just trying to get the last of my money's worth."

SAN FRANCISCO--Tim Armstrong is such a tease.

The AOL CEO, speaking at the Web 2.0 Summit on Thursday, didn't have any high-profile announcements like many of the other speakers at the conference. But instead, he hinted that one might be on the way.

"We have been working on something for the last three months that I think is a fairly substantial shift in our technology," he said. "When that's ready to announce, maybe we'll come back and talk to you about it."

Interviewer and conference organizer John Battelle tried to pry more information out of him, to little avail. But it sounds like it has something to do with the framework that powers AOL's network of blogs and content properties.

"It's a broader platform with more information around content and the creation of content," he said. "We see that platform evolving to a much higher scale."

Armstrong, who joined AOL in March after a stint as head of sales at Google, said that recently the company has increased its roster of journalists from 500 to over 3,000, and that over 3,000 pieces of content are posted every day to AOL properties. It's also now creating three to four times as much video as it was several months ago.

"We've hired people from places like The Wall Street Journal and ESPN," Armstrong said. "You're not just hiring a person, you're hiring the community they come with, and I think that has been an important part when you look at the network effects of that."

It's still not clear how AOL, currently in the process of being spun out from parent company Time Warner, will rake in profits from this huge investment in media content. Armstrong seemed unfazed.

"If you're not going to take risks and you don't think the future is bright," he said, "the Internet is probably not the right place for you."

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.

SAN FRANCISCO--With both MySpace CEO Owen Van Natta and News Corp. chief digital officer Jonathan Miller taking the stage at the Web 2.0 Summit this week, there was naturally plenty of talk about the social site's attempt to reverse its ill fortune of late. Once the biggest name in social networking, it's long since lost that title to Facebook and is trying to reinvent itself as a destination for music and entertainment.

"I think that what you see in the space more than anything else is if you don't keep innovating and moving forward you get in trouble," Miller said in his talk on Thursday morning. "You can't stop, you have to keep going, and (MySpace) didn't keep going, it kind of stopped."

And in that time, he added, "we had two fantastic competitors emerge in Facebook and Twitter."

The previous day, Van Natta made his first big appearance on the conference circuit since he joined MySpace and was tasked with a major turnaround. Van Natta unveiled a new music video hub as well as an enhanced set of marketing tools for music artists--some of which were built in with technology from iLike, which MySpace acquired this summer.

And on Wednesday night, the "new" MySpace was out in full form: a line snaked down three city blocks when music fans caught wind of the fact that the company had booked rock band Weezer for one of its "secret shows" concerts.

"MySpace started with an essence around certain things, and one of them was music, and meeting new people," Miller, a former AOL exec who also joined News Corp. this spring, said on Thursday. "We're going back to basics in that sense, but you've got to make it relevant to today and going forward."

It's obviously too early to tell whether the "reinvention" will work. Some critics say that it's too big of a task, especially given the state of the advertising market. But Miller spent a big portion of his talk at the Web 2.0 Summit hyping up the Fox Audience Network, or FAN, the digital advertising division that News Corp. first announced last spring.

"We kind of broke it out of MySpace and gave it a life of its own," Miller said. "We're just at the beginning of a coming-out party for FAN."

FAN just inked a deal with agency giant Omnicom, and more are on the way, he added. Miller also said FAN is the fifth-largest ad network on the Web, after the usual suspects--Google, Microsoft, Yahoo, and AOL--and that it's hoping to get into fourth place soon.

SAN FRANCISCO--Google Vice President Marissa Mayer made a surprise announcement at the Web 2.0 Summit in San Francisco on Wednesday: "Social Search," a new Google Labs experiment that will bring in search results from a member's social-network contact circle.

It'll be launching as an opt-in project in the next few weeks. Then, you'll need to have a Google account and set up a Google Profile to fill in information about the social networks that you use. Google first launched Profiles about a year ago.

"What we've done here is inserted, on the bottom of the page, content written by people in your social network," Mayer said, adding that Google hopes this will "really improve the overall relevance, comprehensiveness, and quality" of search results. A search for a local restaurant, for example, could bring up your friends' Yelp reviews for the same establishment. A search for travel destinations could bring up a post from a friend's blog.

This comes on the same day that Google announced that it had entered into an agreement with Twitter to bring real-time "tweets" to search results. That's another product that has yet to actually launch.

"The idea is for...these fast-rising queries, where there's a period of time (when there are) actually tweets about that topic, and the definitive news source hasn't been written yet," Mayer said of the Twitter partnership, declining to disclose its financial terms.

This post was updated at 4:25 p.m. PT.

Evan Williams (left) and John Battelle (right)

(Credit: James Martin/CNET)

SAN FRANCISCO--In anticipation of an onstage interview with Twitter CEO Evan Williams at the Web 2.0 Summit on Tuesday afternoon, conference organizer and Federated Media CEO John Battelle told the audience to expect "a surprise" during the talk.

Turns out that "surprise" was actually a recently unearthed video clip of Williams in 1994, explaining the Internet on behalf of a company called Illumination Labs and sporting a haircut that looked like it belonged on the set of '90s alterna-teen flick "Empire Records." (No, we don't have a snapshot of it yet.)

Williams didn't really say a whole lot else about where Twitter's going, beyond what the world already knows: it's been growing fast. It turned down a buyout offer from Facebook. It just raised a ton of money. It still hasn't disclosed a long-term revenue model.

Evan Williams

(Credit: James Martin/CNET)

"It's not like we're spending our days looking in the couch cushions for the elusive revenue model, but obviously we've done a lot of thinking about it," Williams said, declining to comment on the potential of search deals with Google or Microsoft. "I can't tell you exactly what the model is, but it's pretty obvious to you that there may be some advertising that makes sense...there's a lot of commercial activity on Twitter today, there's a lot of brand marketers who use Twitter today, and it works. We think of Twitter (as) not a social network, it's an information network...a substantial part of that is commercial and theoretically monetizable information."

Williams, who previously founded Pyra Labs and sold its flagship Blogger product to Google, took over as CEO of Twitter from fellow co-founder Jack Dorsey last year. Dorsey, who remains Twitter chairman, is working on a new mobile commerce start-up called Square.

In his talk at Web 2.0 Summit, Williams mentioned new features like user-generated "lists," currently in beta, and said that they may end up replacing the site's current (and much-maligned) "suggested user" list altogether. ("It's gone on too long, and I desperately want to kill it or evolve it.") He also said that "some things we're launching" may counteract recent slowdowns in Twitter's U.S. Web-based traffic, which was growing exponentially not so long ago.

"We are seeing slowing of growth in some areas and accelerating growth in other areas. Twitter is very hard to measure, even for us," Williams said. "The biggest two areas that we're seeing growth is on mobile and internationally." Last week, the company inked new mobile deals in India and Japan; currently, its five biggest markets are the U.S., the U.K., Japan, Brazil, and Indonesia, which has been "growing like crazy lately."

So what does he think of the other players in the real-time Web? He's not sure what to make of Google Wave ("I sure as hell don't know what Google Wave is going to be. I haven't wrapped my head around it yet") but underscored that in Twitter's early days he wasn't sure what that would turn out to be either. And as for Facebook, he shrugged off speculation that the social-networking giant started aping Twitter when it was unable to actually buy it.

"I don't know how Facebook's feature prioritization works. I suspect that they came to a lot of the same conclusions we did," Williams said. "In the global sense, I'm pretty sure the world is big enough for Facebook and Twitter, and fundamentally I think they're good at different things. Facebook is phenomenal at communications among people who know each other."

Facebook ultimately purchased a far smaller streaming-information start-up, FriendFeed, this summer.

"We had a few conversations with our friends in Palo Alto (Facebook) and ultimately I just didn't see a reason to sell if that opportunity would have presented itself because it's not the point," he continued regarding the failed acquisition. "The point is really to see what we can build. We believe very strongly in that at Twitter, and enabling the open exchange of information is a good thing for the world."

It's his usual schpiel. Aside from the Nirvana-era haircut, there wasn't a whole lot to tweet about here.

SAN FRANCISCO--Cable companies get a lot of criticism from the Silicon Valley set for being some of the ultimate 20th century corporate dinosaurs. Or, as Web 2.0 Summit conference organizer John Battelle put it, "a dead duck."

So the head of Comcast, a company that's taken loads of heat from tech experts--for imposing bandwidth caps, poor customer service, and an alleged failure to innovate on both broadband speeds and the convergence between television and the Web--was an interesting choice to kick off the summit event here on Tuesday. But Comcast CEO Brian Roberts spun his company to the audience as springing from the same kind of entrepreneurial spirit that the Bay Area prides itself on.

He spoke of how he took over the reins of the company from his father, who according to legend was able to make an early strategic acquisition thanks to the winnings from a Tupelo, Miss., poker game the night before. "Similar to probably almost everyone in this room, (he) wanted to work for himself, wanted to start his own business."

He previewed new features for the Comcast video hub Fancast, which it launched slightly under two years ago at the Consumer Electronics Show. The new beta of Fancast, which will launch by year's end, will make new on-demand content available online, much of it unavailable in outlets like iTunes--and integrated with DVR boxes--to Comcast cable subscribers who already pay for HBO. About two dozen content providers have signed on board, and as Roberts scrolled through the preview, he noted that there were about a thousand movies available.

Comcast CEO Brian Roberts

(Credit: Comcast)

Battelle, interviewing Roberts onstage, called it "video-on-demand on steroids."

The Associated Press, referencing a briefing this week with executives at Comcast's Philadelphia headquarters, helped fill in some of the details about the service, noting that it would include such popular cable shows as HBO's "Entourage" and AMC's "Mad Men" and for now is being called "On Demand Online."

The AP said Comcast subscribers can initially watch shows and movies only on their home computers after being verified by the cable system. Online viewing, at least in the beginning, will be restricted to those who get Internet service through Comcast, not through competitors like phone companies, the AP said.

Back at Web 2.0 Summit, Roberts also said that Comcast investments in broadband technology are, in part, what has facilitated the explosion in Web innovation.

"We're going to keep investing, because we believe there are great ideas in this room and in this country and in the world," Roberts said. "In the same way, it's unthinkable that a Google or a Yahoo or a Facebook or a Twitter would be happening if we hadn't made those investments (in broadband infrastructure) 15 years ago."

Battelle asked Roberts why he believes the U.S. lags behind in broadband technology advancements. Roberts replied, "I think that that's just not true."

(The audience laughed uncomfortably.)

"We have the same equipment (as other countries), the same wires, the same infrastructure, why is the adoption different is a different question. It's not the availability and I don't think it's the lack of speed," he continued. "You get to digital literacy, you get to what language it's in, do you have the right PC or a PC at all...I don't believe the infrastructure providers haven't done enough."

As for Net neutrality, an issue where Comcast has been a frequent villain after imposing bandwidth caps and interfering with peer-to-peer file-sharing software, Roberts was vague.

"We welcome that discussion, that scrutiny, and we're going to be an active participant," he said. "The few limited examples, including our own, that have gotten notoriety usually get dealt with in ten seconds, and changes get made, because this is new technology."

More recently, it's bubbled into the press that Comcast is in talks with General Electric to obtain a controlling stake in its NBC Universal property. Conveniently, GE chief Jeffrey Immelt was slated to speak later in the afternoon at Web 2.0 Summit.

"You and Jeff Immelt must have finished the NBC deal back in the green room," Battelle joked.

Roberts replied facetiously, "It's all done."