Erick Schonfeld
by Erick Schonfeld on November 22, 2009

Rupert Murdoch is pointing a gun to Google’s head, and Microsoft is helping him pull back the trigger. For the past few weeks, Murdoch and his officers at News Corp. have been very vocal about their distaste for Google and their desire to lead other media companies in a boycott of sorts.

Murdoch keeps threatening to stop letting Google index the WSJ.com and his other media sites, and wants other news sites to join him in this self-imposed silence. The folks at Microsoft’s Bing think this is a great idea. Not only that, but the FT reports that Microsoft is in fact in discussions with News Corp. and other publishers about the possibility of paying them to remove their sites from Google’s search index.

by Erick Schonfeld on November 20, 2009

Yesterday, Twitter changed its organizing question from “What Are You Doing?” to “What’s Happening?” But the new call to action might be better suited to Hot Potato, a startup launching right now at our Realtime CrunchUp. Hot Potato is releasing an iPhone app which lets you create a stream of conversations around events based both on your location and what your friends are doing.

Hot Potato is a micro-messaging app that organizes the conversation stream by events. For Hot Potato, an event can be anything that is happening right now: a basketball game, concert, party, street fair, buying a new car, or even just two friends on a bike ride. An event is whatever is happening that people want to share.

by Erick Schonfeld on November 19, 2009

Ever since Google started talking about its Google Chrome OS, developers, competitors, and observers have been wondering why Google needs two operating systems: Android and Chrome OS. At today’s chrome OS briefing, Google was asked whether Chrome OS would support Android apps. The answer is no.

Of course, as Michael pointed out during the Q&A, Steve Jobs said the same thing when he launched the iPhone without apps, and then when he was ready, it was all about the apps. But Google had a good response: they want to make web apps work well on Chrome OS and therefore will only be focusing on those. Later on Sergey Brin touched on the same theme when he said, “Call us dumb businessmen, but . . . we believe the Web platform is a much simpler way.”

Here’s the initial exchange from MG’s live notes:

by Erick Schonfeld on November 19, 2009

Still not sure why Google is building its own operating system? It created this animated video to try to explain why the Web needs a new OS, and why that OS should be Chrome. Google just showed the video at its Chrome OS press event which MG is liveblogging.

by Erick Schonfeld on November 18, 2009

Remember the flurry of new features Bing rolled out last week? Bing announced Wolfram Alpha results for nutrition searches, more in-depth weather results, enhanced hover previews, better maps, and turned MSN Video into Bing Videos. Well, it turns out it is also quietly launched another feature which highlights the latest posts from news sites.

If you do a search for “TechCrunch” or “New York Times,” for instance, underneath the summary information and deep links there are the three latest headlines under “Latest posts.”

by Erick Schonfeld on November 18, 2009

Microsoft announced the availability of Silverlight 4 in beta at its Professional Developers Conference (PDC) today. Some of the new features include more fluid animations, Webcam, microphone and printing support, 200 percent faster start times than Silverlight 3, deep zoom and multi-touch support and more. It now also supports Google Chrome, even though it’s just a rounding error of a browser.

One of the big capabilities of Silverlight 4 is its ability to take rich-media experiences outside the browser in client apps which will compete with Adobe AIR. The non-browser apps fully support HTML, allowing tight integration with content from the Web. It also supports notifications.

by Erick Schonfeld on November 18, 2009

Media on the Web is going from a solo affair to a shared experience. We are seeing this in everything from CNN live news videos enabled with Facebook chat to Meebo Rooms and Tiny Chat. Today, a new startup from Los Angeles called Qlipso is launching its own virtual rooms where friends can share videos and play Flash games with each other.

The service is in private beta and requires a Windows-only download for the avatars (there’s also a Web app without the avatars). You can get one of 1,000 invites here. Click on “Get Started” and ignore the beta key request. Send an email to the contact listed (betsy) and put “TechCrunch Invite” in the subject line.

by Erick Schonfeld on November 18, 2009

We’re just two days away from our Realtime CrunchUp in San Francisco. The CrunchUp agenda is chock full of goodness. Since our first event back in July, the momentum around realtime has accelerated. We find ourselves awash in realtime streams of data, and these realtime streams are becoming the new center of attention on the Web. During the conference we’ll be drilling down into what’s next for realtime in terms of making this stream manageable, adding new tributaries to the stream such as geolocation data, and building businesses on top of it.

As if the amazing lineup of speakers (from Twitter, Facebook, Google, Microsoft, Foursquare, Seesmic, Brizzly, Hot Potato, Tweetmeme, DailyBooth) and startup product launch demos were not enough to drop everything right now and buy a ticket, I am going to give you one more reason. We’ll be giving away a half-day sailing excursion to one lucky ticket holder at the event.

And remember, you can justify taking a half-day off to go sailing as a “team-building” activity.

by Erick Schonfeld on November 17, 2009

Old habits die hard. Rupert Murdoch believes that the future of the newspaper business is subscriptions—electronic subscriptions. He’s done with giving away his news for free on the Web and to search engines like Google. Instead thinks that Kindle-like tablet computers can save the media industry. It’s a notion that’s been floated before: an entire newsstand in a color tablet which delivers electronic versions of any newspaper or magazine you want for a monthly subscription of $15 to $19 a month.

It’s got to work, otherwise, he warns from his soapbox, “Newspapers will go out of business. All newspapers.” In an interview on his own Fox Business (embedded below), he explains his thinking:

by Erick Schonfeld on November 17, 2009

Have you ever wanted to be a Wall Street analyst or come up with your own discounted cash flow model for a publicly traded company? Me neither, but I like the idea of tweaking a few variables in a company’s business model and seeing how that might change a its stock price. A new site launching today called Trefis lets you do just that.

Started by three engineers and math whizzes from MIT and Cornell (Manish Jhunjhunwala, Adam Donovan, and Cem Ozkaynak) who did time at McKinsey and UBS bank, Trefis breaks down a stock price by the contribution of a company’s major products and businesses. For instance, 51.3 percent of Apple’s stock price is attributed to the iPhone, 25.5 percent to the Macintosh, and only 7.7 percent to iTunes and iPhone apps. Don’t agree? You can change the underlying assumptions by simply dragging lines on charts forecasting the future price of the iPhone, its market share going out to 2016, and so forth. Every time you change an assumption, the price target changes accordingly.

by Erick Schonfeld on November 16, 2009

Remember all that talk about Bing starting to fizzle in September? Well it didn’t happen, and now October numbers and Bing gained another half a point to reach 9.9 percent market share of U.S. searches, according to comScore’s qSearch service. Five months after launch, Bing has steadily gained two points of market share.

And it is keeping the pressure on, with deals to index realtime data streams from both Twitter and Facebook (Google also has a deal with Twitter, but not Facebook), a deal with Wolfram Alpha for nutrition and diet data, and the constant rollout of new features such as better video search.

by Erick Schonfeld on November 16, 2009

It’s been a long decade, but AOL will once again be an independently traded company on December 9, when Time Warner will spin off shares. Every Time Warner shareholder (disclosure: including me, from when I was employed there) will receive shares in AOL using the following formula: one share of AOL will be distributed for every 11 shares held in Time Warner.

In other words, we finally have an approximate market capitalization for AOL. The business will be valued at 1/11th 1/12th the value of Time Warner. At today’s market cap of $37.8 billion for Time Warner, based on a closing price of $32, that implies a $3.4 $3.15 billion market cap for AOL. Unless Time Warner shares surge over the next few weeks, it will be in that ballpark. Update: My initial math was slightly off. As some commenters point out, the implied value is 1/12th of Time Warner since at the time of the distribution everyone with 11 shares will receive an additional share. SInce we know how much Time Warner is worth, it is possible to come up with an implied value for AOL based on that ratio, even though that value will change the minute the shares start trading.

by Erick Schonfeld on November 16, 2009

Did Facebook finally unfriend iLike? It certainly looks that way. Facebook is restricting iLike from showing people’s music data in their profiles (the songs and artists they like) or alerting them to upcoming concerts through Facebook notifications. The ban on notifications appears to be part of Facebook’s recent moves to fight app spam. It is not clear what music data specifically will be pulled from profiles, but that could cover all the data iLike collects about users—their music preferences and recommendations.

Even though iLike is the top music app on Facebook, with 12 million active monthly users, the two companies have been on the outs ever since iLike was picked up for a song by arch-rival MySpace. The recent deal with Google Music to show iLike/MySpace Music results added insult to injury.

by Erick Schonfeld on November 15, 2009

Time Inc just launched a new technology blog called Techland, headed up by one of our former CrunchGear editors Peter Ha. Time magazine’s senior tech writer Lev Grossman is also a contributor. Techland covers the intersection of gadgets and geek culture, and is aimed at a mainstream audience.

Some of the debut posts cover the movie 2012, Samsung’s new Android phone, and a recap of Apple’s legal victory over clone-maker Psystar. It’s a crowded field, but the appetite for gadget culture is seemingly endless.

by Erick Schonfeld on November 15, 2009

It’s been about a year since Brightcove released the last upgrade to its professional online video platform with Brightcove 3. On Monday, it’s going to release Brightcove 4, and it’s a massive upgrade.

Brightcove 4 now supports a native video player on the iPhone, in Facebook, and live video streaming on the Web. It’s got Twitter integration for sharing videos, faster-loading video players, the ability to switch between Flash streaming and HTTP, adaptive streaming based on a user’s device and bandwidth, behind-the-firewall video delivery, support for most major ad servers, better analytics, and a new, cheaper, entry-level subscription service called Brightcove Express.

The biggest new feature is the iPhone player. Instead of clicking off into the Quicktime player, Brightcove uses the Quicktime APIs to render the player within an app. Developers are going to love this because they can skin the player any way they want, tie it into the same ads served through a publisher’s Brightcove player on the Web, add email and Twitter sharing, and Coverflow-style browsing.

by Erick Schonfeld on November 14, 2009

At the beginning of 2009, during a now-famous strategy meeting, Twitter’s executives asked themselves, “Are we building a new Internet?” At the crux of that question was the realization that Twitter “introduced a new form of communication to the world.” Public micro-messages are now everywhere—on Twitter, Facebook, MySpace, Google, Bing, Yahoo, AIM. They are infiltrating every part of the Web, particularly as the backbone of realtime search.

Yes, status updates (which are a form of micro-message) existed before Twitter, but it is the growing public nature of these messages which makes them exciting. For one thing, they need to be public in order to be visible to search engines. But when Twitter and other companies talk about building a new Internet, they don’t mean that 140-character messages are going to replace web pages. Rather it is that these realtime streams are becoming the center of people’s attention on the Web, and sending them off in all different sorts of directions.

These streams are the new Internet not so much because of the micro-content which they contain, but because they are a more efficient means of communication. Remember, the Internet at its core is a communications system. The battle going on now between Twitter, Facebook, Google, and others is to control this new realtime layer of communications on the Internet. Each one wants to be driving the micro-message bus.

by Erick Schonfeld on November 13, 2009

Once again, News Corp. is threatening to hide itself from the rest of the Web. Earlier this week, Rupert Murdoch told an Australian interviewer that he might start blocking Google from the WSJ.com and his other news sites, even though Google accounts for about 25 percent of the traffic to the WSJ.com. Now his digital lieutenant Jon Miller is echoing his boss and warning that a move to block Google may come within the next few months. But he qualifies that by saying that News Corp must “lead” other media companies against Google for this to work. In other words, News Corp can’t go it alone.

I’m not sure what other media companies, other than the AP, might be willing to follow. While the WSJ actually does quite a good job getting people to pay subscriptions online, and supplements that with advertising revenue to those paid subscribers, it is not clear how many other media brands can command that kind of loyalty. If Murdoch can get any of his newspaper rivals to once again retreat behind pay walls, it most surely will hurt them more than it will hurt Google.

by Erick Schonfeld on November 12, 2009

Location, location, location. With the growing ubiquity of GPS-equipped phones, there is a virtual land rush going on right now to put geolocation capabilities in every mobile app. Today, Mixer Labs, the folks behind TownMe, introduced the GeoAPI, aimed at developers who want to add geolocation features to their apps in a plug-and-play fashion.

The GeoAPI is built on top of what was previously called the TownMe GeoAPI, which offered a reverse geo-coder for lat/long coordinates and geo-database of 16 million businesses and points of interest. But now it is its own separate product, and with today’s release the GeoAPI now includes geo-coded Tweets and Flickr photos, improved search, a dedicated short URL (http//:geo.am) for location-specific links, an iPhone SDK, and better intersection data. You can find out more details here.

by Erick Schonfeld on November 12, 2009

Twitter may be having trouble finding new users in the U.S., but its existing users in the U.S. seem to be putting out a majority of the Tweets, which are now averaging 27.3 million a day. According to data provided to us by Pingdom, the pattern of Tweets follows waking hours in the U.S. (see chart), even though comScore data suggests more than half of Twitter’s users are from outside the U.S.

While this data is only a snapshot of the Twitter activity in the three weeks between October 21 and November 11, it does show that the number of messages sent out over the service is approaching a massive scale. Pingdom estimates that the average number of Tweets per hour is 1.1 million, with fluctuations between 567,000 and 1.8 million Tweets per hour over the period Pingdom sampled Twitter’s public timeline. At the current rate, people are sending out 10 billion Tweets a year. It was only last month that the 5 billionth Tweet was sent out.

by Erick Schonfeld on November 12, 2009

Did LinkedIn more than double its U.S. visitors in October? A casual glance at the latest comScore data makes it look that way, with LinkedIn shooting up to 20 million unique visitors in October, 2009, from 9 million in September, 2009. The new estimate puts LinkedIn ahead of Twitter, which saw a decline of U.S visitors last month to 19.2 million.

Of course, LinkedIn didn’t really all of a sudden have a growth spurt in October. Rather, comScore was previously under-counting its reach. Now it does a better job of measuring Web usage at work, which apparently is where about half of LinkedIn’s users check in. It makes sense, since LinkedIn is a professional network and you are more likely to be looking for contacts at other companies during work hours.

by Erick Schonfeld on November 12, 2009

Ever since last summer, Twitter’s growth in the U.S. has been stalling. But in October, the number of people who visited Twitter.com from the U.S. actually declined for the first time by 8 percent month-over-month. Estimates released today by comScore put Twitter’s domestic unique visitors at 19.2 million, down from 20.9 million in September.

On an annual basis, Twitter is still going gangbusters with 1,271 percent growth from 1.4 million visitors in October, 2008. And on a global basis, it still seems to be chugging away with 58.4 million visitors in September. But a hypergrowth company like Twitter cannot afford to slow down in its home market.

by Erick Schonfeld on November 12, 2009

Today Intel agreed to pay rival chipmaker AMD $1.25 billion to settle a raft of ongoing litigation going back decades. AMD accused Intel of anti-competitive practices, which sparked an antitrust investigation. By settling now with AMD, Intel could avoids paying out billions more down the line and being branded a monopolist by the government for abusing its 80 percent PC-chip market share.

The size of the settlement is as close to an admission of guilt we’ll ever hear from Intel. It still maintains its innocence, as any prudent corporation would, but you don’t pay out $1.25 billion just to avoid the hassle of a trial. And while $1.25 billion is an enormous sum which will help shore up AMD’s balance sheet, it amounts to only 10 percent of Intel’s $12.9 billion in cash and short term investments.

by Erick Schonfeld on November 12, 2009

As AOL prepares to spin off from Time Warner in an IPO, it wants to gussy itself up so that it looks as appealing as possible tp ublic investors. Today, AOL disclosed that it plans yet another restructuring which could cost as much as $200 million. The biggest cost savings from any restructuring is usually through layoffs, and the latest round has already started at AOL, with 100 let go this week and as many as 1,000 of its 6,000 jobs at risk of being eliminated.

Despite new leadership under CEO Tim Armstrong, AOL has yet to turn around financially. Last quarter, revenues sank 23 percent to $777 million. The biggest drop came from subscription revenues to its legacy Internet access business, down 29 percent, but advertising revenues also took a hit, down 18 percent. AOL depends on display advertising, which has not yet rebounded like search advertising appears to be doing.

by Erick Schonfeld on November 11, 2009

After two straight quarters of annual declines (aka, the Great Ad Recession of 2009), it looks like online advertising revenues stabilized in the third quarter. The combined online advertising revenues of Google, Yahoo, Microsoft, and AOL rose 1.2 percent to $8 billion. While the online advertising industry is not out of the woods yet, it might be stabilizing.

At least it is for Google, which was the only one of the four horsemen of Internet advertising to see its ad revenues rise in the quarter (up roughly $400 million from both last quarter and last year). Yahoo, AOL, and Microsoft were all down on both a sequential and annual basis. (All the individual company figures are in the table below). Google benefits more from search advertising and is less exposed to display. The question now is whether display advertising will follow the recovery already being experienced by search advertising.

by Erick Schonfeld on November 11, 2009

Ever since Microsoft launched its Bing search engine last May, there’s been buzz that it’s been talking with Wolfram Alpha to license some of its search data. In August, I was able to confirm that a deal had indeed been struck between the two. Today, Bing is finally rolling out its first integration with Wolfram Alpha for searches around diet and nutrition.

Whenever you do a nutrition or diet-related search on Bing, it will serve up structured data from Wolfram. For instance, a search for any food item will bring up a nutrition tab and summarize nutrition facts about that kind of food, including the total fat in a single serving, along with the percentage of the recommended daily allowance that represents and other nutritional data. The results will be marked as “computed buy Wolfram Alpha.” Wolfram will also power a body mass index (BMI) calculator which lets you enter your height and weight, and calculates your BMI.

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