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The Disposable Economy Has to Change

May 11th, 2008 | 6 Comments | Posted in Main Page

Picture 2-39
I few weeks ago, I saw two films at the Hot Docs festival that, for whatever, reason hit home.

One was the excellent Manufactured Landscapes, which looks at the industrial revolution happening in China, as well as “recycling” efforts in China and Bangladesh. The other was Garbage: The Revolution Starts at Home, in which a middle-class Toronto family saves their garbage for three months to really see how much waste they generate.

What really resonated with me was how much stuff we consume and subsequently turf. We live in a consumer-driven society where lower prices make products easily and quickly disposable; products that used to be things you bought every five years. Case in point, what ever happened to the Maytag repair man?

The consumer electronics industry is perhaps the worst offender. When you’re buying $29 DVD players or even $400 computers, throwing them out after a year or two has become fairly common. If something goes wrong with them, there’s no sense repairing them when the replacement cost is not that much higher.

It’s a terrific environment for people who want and/or like new things but terrible for the environment. Sooner rather than later, consumers need to start realizing that there is a cost associated with buying cheap products with a short shelf life. Think about what all the consumer electronics you’ve purchased over the past five years would look like if you threw them into a pile on your front lawn.

Of course, most people never think about it after the garbage truck has taken away the broken DVD player, or your chemical-laced computer is being manually disassembled in rural China.

What we need is a return to quality based on the idea that products should last longer. We need products that can be upgraded rather than tossed aside when something new with more features captures our fancy. Computers, for example, should be a snap to upgrade. If you need more RAM, open your computer case and quickly insert more RAM. If you want to add more features to your one-year-old iPod as opposed to buying a new one, just buy a download from Apple.

Of course, consumers are obsessed with buying new products, and manufacturers are driven by selling more stuff. This paradigm isn’t going to change any time soon but people have to start thinking about the total cost of living in a disposable, here-today-gone-tomorrow world.

Note: Another inspiration for this post is a 12-year-old Procter Silex coffee maker that has no frills other than the ability to brew coffee. In an ideal world, I would trade it for a new $40 coffee maker with an auto-timer but it works and make pretty good coffee so why get rid of it.

Update: Great Green Gadgets has an interesting post looking at the search for the “perfect green computer”. It cites an Irish company called iameco, which is making environmentally-friendly computers and components. iameco’s logo is above left. As well, check this cool video: The Story of Stuff.

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The Weekly Wrap: May 4 to 10

May 10th, 2008 | 1 Comment | Posted in Web 2.0

The week that was on MET:

Highlights:

- Being asked to join Grand Effect, a blog network featuring tech bloggers such as ParisLemon, Sarah Perez and Steve Hodson. As someone who has mostly been a lone wolf, I’m excited about being part of a focused and high-quality group of bloggers.

- With less than two weeks before mesh and meshU, ticket sales are brisk. I always find it interesting to see two camps of buyers: those who purchase their tickets as soon as they go on sales, and those who wait until the last minute. We’ve also announced the socializing schedule for mesh and meshU.

Strange but true….

- This video about was Facebook would be like in real life is funny and somewhat troubling when you think about it. (Hat tip to Feature Or Bug). Speaking of Facebook, it is interesting to see it borrow $100-million to buy 50,000 servers given all the cash it’s raised recently. It does make you wonder about Facebook the business as opposed to Facebook the social network phenomena.

- Within the iPod community, there’s a new craze called silent disco or silent rave where people get together and dance to their own music. I guess talking while you dance is going out of favor!

- The Globe & Mail, Canada’s national newspaper, has two front page stories (here and here) in the weekend papers that cite bloggers as sources.

Most Popular Posts

- Is Flickr Worth $4-billion: My math or assumptions may not be accurate but Flickr is a whole lot more than the $40-million to $50-million that Yahoo paid to buy it in 2005. With the growth in traffic, Yahoo paid about $1/monthly unique visitor.

- So Much to Do, Not Enough Time: It’s hard not to find people complaining how busy their lives have become, especially the digerati who are torn in a growing number of directions (e-mail, Twitter, Facebook, Friendfeed, etc.). Two words of advice: prioritize and focus.

- Yahoo’s Smorgasbord is the Problem: With a huge portfolio of services, one of Yahoo’s challenges is making sure it is paying enough attention to the best ones.

- Wanted/Needed: A Twitter Directory: With so many new Twitter-related services such as Summize (check out Paul Stamatiou’s review) being launched, it would be great to have one place to find them. Read the comments for some suggestions.

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A Rare Google Casualty

May 9th, 2008 | 1 Comment | Posted in Google

In what may be a first, Google is closing down part of its empire - albeit a little-known photo-sharing service called Hello that was acquired as part of Picasa in 2005.

There’s probably been Google services that have quietly disappeared into the bowels of the Googleplex never to be seen again (Dodgeball?) but closing a service has not been part of Google’s operating manual.

Then again, when you have an army of developers spending churning out new services, at some point you have a buffet of products (or “100 children” as Monster founder Jeff Taylor describes it). Not all of them can be successful even if you slap the Google brand on them.

In the book “It’s All Too Much” about battling clutter, they suggest that for every thing new you bring into your house, you throw something out. Maybe Hello is just Google doing some de-cluttering.

For more, check out Mathew Ingram, who says Hello was a solid service. As well, check out Ryan Spoon’s list of the 15 online services he would pay to use.

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Is Flickr Worth $4-Billion?

May 8th, 2008 | 38 Comments | Posted in M&A

In the wake of Microsoft’s aborted courtship of Yahoo and Jerry “Oh, did you increase your offer?” Yang, there’s bound to be a lot of scrutiny about what’s next for Yahoo.

One asset that’s well known but perhaps not scrutinized from an investment perspective is Flickr, the world’s most popular photo-sharing site that Yahoo picked up for a song (estimated $40-million) in 2005. Today, Flickr attracts more than 44 million unique visitors a month, according to Comscore, while Compete.com reports Flickr had 30 million unique visitors and 70.2 million page views in the U.S. last month.

Despite Flickr’s popularity, it is arguably under-monetized. In terms of advertising, it’s minimal at best. Instead, Flickr makes most of its money by selling Flickr Pro memberships for $24.95/year and offers e-commerce services through partners such as photocards, posters, frames and calendars.

So, what’s Flickr worth, and, more important, what could it be worth if it was managed more aggressively?

Let’s do some back of the envelope calculations based on its current financial model. If you assume 10% of its 44 million unique visitors have Flickr Pro accounts, that’s about $110-million in revenue; if it’s only 5%, it’s $55-million. Then, add another $10-million in e-commerce commissions.

What you get is revenue of $65-million to $120-million. If we now take Henry Blodget’s 25X revenue formula (which he applied to Facebook), Flickr is worth $1.5-billion to $3-billion.

Scenario II: Flickr Monetized Better

With online advertising gaining so much traction, Flickr would be a very attractive target given its traffic and user demographics. For the sake of argument, let’s assume Flickr changed business tactics and introduced two high-profile advertising slots throughout the service. I choose two because it would be significant without pissing off most of Flickr users, who regard Flickr as their personal property and are resistant to change of any kind.

If Flickr could get $5/CPM, that would generate $10-million in advertising/year based on the assumption it’s getting about 100 million global pageviews/month. It’s not a lot of revenue given the conservative approach to how much advertising Flickr would present and how much it would charge but, nevertheless, it would give Flickr an additional $250-million based on Blodget’s formula.

Then, you’re looking at a company worth $1.75-billion to $3.25-billion. Add on a takeover or IPO premium of perhaps 25%, and you’re looking at a valuation of $2.2-billion to $4-billion.

More: For a story on Flickr’s growth and success, check out this story in USA Today. Here’s Blodget’s list of the 25 most-valuable privately-owned startups. As well, Mashable’s Adam Ostrow calling MySpace “the biggest steal in Internet history”

The graph below looks at the number of unique visitors last month for Facebook, Flickr and Photobucket, which was acquired by News Corp. last year for $300-million.

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Wanted/Needed: Twitter Services Directory

May 7th, 2008 | 10 Comments | Posted in Web 2.0

Twittering-5
One of the best aspects of Twitter is the flurry of cool related services that seem to be released on a daily basis.

The launch of TwitterFone yesterday got me thinking how useful it would be to have a directory where you could find any Twitter-related service. It would be something similar to the Wordpress Plugin Directory, and be a user-friendly destination where Twitter aficionados could easily and quickly find services to make Twitter more useful, powerful, fun, etc.

If I had the time and, more important, the programming skills, this would be something I would, in theory, create. But I’m sure there’s an entrepreneurial soul out there who could take on this project in no time at all!

Note: A Twitter directory may already exist. If you know of one, leave a comment. If you’re looking for interesting Twitter applications, a search for “best Twitter services” will give you lots of places to waste/invest some time.

More: Speaking of Twitter, ParisLemon has a post looking at how the mainstream media is starting to catch on. He points to a Reuters story on how breaking news breaks on Twitter.

As well: In other Twitter news, Twitter has created an official spammer blacklist. One question: why did it take so long given spam is becoming such a big problem. Everyone knew it was coming so you figured Twitter would have been ahead of the game.

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Climbing Aboard Grand Effect

May 7th, 2008 | 2 Comments | Posted in Blogs

Grand Effect
Not that I had to think about it much but I’ve decided to take the plunge and join a new blog network called Grand Effect.…and it’s all Corvida’s fault.

A month or so ago, I was reading Corvida’s SheGeeks (which I had happily just discovered), and noticed she was a member of something called Grand Effect. Curious, I learned this was a new network started by Sarah Perez that was going to have a small handful of members. That sounded good but what got me interested were the top-notch names on board. In addition to Corvida and Sarah, there was M.G. Siegler (ParisLemon), Federic (The Last Podcast) and David Peralty.

Impressed, I dropped a note to Sarah, and was pleasantly surprised (and flattered) when earlier this week, I received an invitation to join Grand Effect. I know Grand Effect is interested in attracting advertising. And while that would be a nice development, I’m more excited about joining a group of high-quality group of tech bloggers who are part of something new and exciting at a time when there’s so much happening within the blogging, social media and online advertising worlds.

To learn more about Grand Effect, click here, while you can get information on its bloggers, which also include fellow Canadian Steve Hodson, here.

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Would You Buy a MacBook Clone?

May 6th, 2008 | 3 Comments | Posted in Apple/iPod

There’s a lot of chatter about “rebel” computer makers such Psystar Corp. sticking their collective tongues at Steve Jobs by selling desktops featuring Mac OS X at much lower prices than an Apple-made machine.

To date, these computers have been interesting and somewhat newsworthy but far from compelling because desktop computers are far from sexy.

But what would happen if someone started selling a knock-off MacBook or MacBook Pro that had the look, feel and OS as the Real McCoy? Now, that would be interesting for anyone interested in buying a MacBook/MacBook Pro but unable or unwilling to drop $1,300 to $3,000.

Let’s say, for example, you could buy a knock-off MacBook for $600. Would you do it even though it didn’t have Steve Jobs’ personal seal of approval?

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So Much to Do, Not Enough Time!

May 6th, 2008 | 10 Comments | Posted in Web 2.0

Notime

Not sure why it’s happening but over the past little while, I’ve run into a common theme during conversations and meetings, on Twitter and e-mail: many people feel they don’t have enough time to do all the things they want/need to do.

Keep in mind these are “knowledge workers” who spend their working days in front of computers with access to all the goodies on the Web. These are well-educated, smart people who have most likely worked hard, and enjoy various degrees of professional success. Yet despite their intelligence and success, they’re running into a time scarcity.

Why is that? Is it a question of priorities and simply the need to do everything - blog, Twitter, listen to music, exercise read, work, attend conferences, socialize, spend time with family and sneak in a few hours of sleep. Perhaps we’ve become consumed the idea of multi-tasking, and the notion that we should be multi-tasking at all times.

Think about it; how often do you really focus on just one thing? How often are you driving, checking your e-mail and talking to your children? Or writing a document, checking Twitter and bouncing over to see if you’re still winning the auction on eBay. More often that you think.

On far too many occasions, I joke that it would be good to have multiple versions of Mark Evans - sort of like Michael Keaton in Multiplicity. One would be completely focused on work; one would be the ultimate family guy; one would learn Spanish and HTML; one would play hockey several times a week; and one would just read, watch movies and have long, casual lunches with friends and family.

In the absence of cloning, the one Mark Evans does what he can, which means getting up early in the morning to do blog posts, read the paper, enjoy the first cup of coffee, play hockey, check e-mail and surf the Web. Of course, there’s a limit to how early you can wake up.

At the same time, I’ve also started to realize you can’t do it all so it’s okay to have a day or two go by without checking Twitter or Facebook; it’s okay to rarely watch television or try to read the weekend papers from cover to cover; and it’s okay to focus on only one thing be it a key work assignment, the crossword, a blog post or playing with your children.

For people who feel strapped for time, check out a talk that Merlin Mann did recently entitled “Attention Sinks and Time Burglars” in which he correctly asserts that “Time and attention are finite resources - two of the most precious resources we have as human beings”, and how people “have a lot of trouble keeping time and attention trained on things that are really valuable”.

For any who feels the day isn’t long enough or there’s too much to do, give it a listen - that is, if you have the 60 minutes to do it. For anyone looking for help, Merlin suggests two books: The Now Habit and Getting Things Done.

Update: Dosh Dosh has a good post on prioritization to improve your work and learning efficiency. Google Blogoscoped has a post on how to deal with information overload, which features tips from a variety of the digerati.

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Yahoo’s Smorgasbord is the Problem

May 5th, 2008 | 7 Comments | Posted in M&A, Microsoft

Nowwhat
It’s Monday, the sun is shining and it’s the first day of the New Yahoo now that the evil empire - Microsoft - has been repelled after a two-month siege.

Now what, Mr. Jerry Yang? Surely, you’ve got something up your strategic sleeve that somehow convinced the Yahoo board to walk away from a $40-billion offer. Maybe as Dan Farber suggests, Yahoo is betting its future of Y!Open that will make Yahoo an open and social platform.

Yahoo and Yang are getting all kinds of suggestions about what to do now: Henry Blodget encourages Yahoo to do the outsourcing deal with Google while Howard Lindzon suggests Yang stop blogging and focus on increasing shareholder value.

Perhaps another strategic issue Yahoo should seriously explore is whether is needs to be all things to all people. As Monster co-founder Jeff Taylor put it last week during a conversation the Communitech conference, Yahoo has an extensive service portfolio. He describes it as having “100 children”. As any parent with more than one child would appreciate, trying to manage multiple children is challenging let alone 100.

For a sense of what Yahoo is bringing to the table, check out a directory ironically called Yahoo! Everything. It features pretty much everything within the Yahoo empire that has been launched organically over the past 14 years or been acquired. The list is impressive but also daunting given Yahoo is everywhere and anywhere.

The question is whether trying to be all-things-to-all-people makes sense or works. Is it possible to effectively manage a business with so many tentacles? How do you nurture the ones with more growth potential while still keeping your other children happy?

If you want to illustrate Yahoo’s strategic challenges, let’s take a look at del.icio.us, the popular bookmarking that Yahoo acquired in 2005 for $20-million. Since then, del.icio.us hasn’t changed that much, although a major upgrade has apparently been in the works for months, and it hasn’t been extensively integrated that much within the Yahoo empire.

So, why did Yahoo buy del.icio.us other than wanting access to its millions of users? What was the strategic fit? This is just one example but I’m sure you could go through Yahoo Everything, and ask the same question for dozens of organically-created services and acquisitions.

As Yang scrambles to create YAM (Yahoo After Microsoft) maybe he needs to look at the company’s service smorgasbord to determine what Yahoo really needs to be successful. Maybe kicking a few children out of the house (e.g. closing, selling or spinning off business units) would be a good move to give everyone else more room to grow.

More: ReadWriteWeb’s Marshall Kirkpatrick has a good post looking at how your favorite Yahoo services are safe for now.

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Let’s Get the (Yahoo-Microsoft Blogging Party) Started

May 3rd, 2008 | 2 Comments | Posted in Blogs, M&A

Feedingfrenzy
So, Microsoft has withdrawn its hostile bid for Yahoo - putting the Saturday night plans of tech bloggers around the world into total disarray with dinner plans cancelled, NBA and NBA playoff games abandoned, cold libations sadly gone lukewarm, and partners, wives and girlfriends left cooling their collective heels.

In other words, the blogosphere is furiously jumping on the Yahoo-Microsoft story like drowning sailors scrambling to get on life rafts. It’s the story and no one wants to be left behind. Because anyone and everyone can jump into the conversation, they probably will.

The heavyweights - CNet, GigaOm, TechCrunch, Paul Kedrosky, BoomTown, CenterNetworks - have already weighed into the fray with instant analysis. Pretty soon, Techmeme will be completely overwhelmed as the blogosphere goes into overdrive.

Stepping back from the news itself, it’s pretty fascinating to see how a major development can spawn a feeding (blogging?) frenzy with everyone excited about talking as opposed to simply listening. Since they (Blogger, Wordpress, TypePad) built it, they (bloggers) will come.

I’m not suggesting people shouldn’t blog to their heart’s content about Microsoft walking away from Yahoo after spending so much time trying to woo Jerry Yang et al into the fold. If you’ve got something to say, do it but you’ll have a lot of company…include me, I guess.

Update: Not that it’s a surprise but the Microsoft-Yahoo news has consumed nearly all of Techmeme.

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