Archive for the ‘predictions’ Category

How DRM will kill the recording industry.

Tuesday, October 11th, 2005

When IBM approached little Microsoft to supply them with an OS to service a market for computers that individuals owned, they did not see the lock in that would mean that Microsoft would soon be telling IBM what to do.

The combined hubris and stupidity of the record labels is repeating this game of switch with Apple. The music guys thought that they could test the waters with electronic delivery with an also ran like Apple and use tight DRM to make sure that they weren’t fueling the file sharing networks.

As this excellent piece in brainwash points out, AFF’s Brainwash :: The recording industry’s new clothes, they have created the Microsoft of music.

Apple now owns the customer, even if you have most of your music as MP3s on an iPod but a few songs you have bought from the iTunes music store, you have a real dollar value switching cost. I wonder how many of the increasingly ubiquitous iPod users even know that they can’t easily take their songs to a non-Apple product.

I expect that before long there will be court cases for Apple to display disclaimers on their products saying that they cannot move songs to a non-Apple environment, or cases to legitimize software that bypasses Apple’s DRM and converts songs to regular MP3.

By the time that these have dragged through the courts, Apple will have won. But the real irony is that it won’t be file sharing advocates pushing these cases, but the recording industry.

Apple holds the cards precisely because it and not the recording industry, controlls the DRM.

Are Levis back?

Thursday, July 14th, 2005

Ten years ago, I started a design company and our biggest client was Levis. Levis were trendy and they fed the trend by sposoring DJs and independent record labels and bands. We got the gig for Levis, in fact, because my business partner knew the manager of Massive Attack and Levis were involved in promoting Massive Attack’s climb to fame.

Five years Later, when I moved to the US, Levis was in the process of a big fall from grace - and the business guys blamed it on late outsourcing and bad design.

Last month, I noticed that a few trendy people were wearing Levis in NY, in an almost ironic anti-fashion way. A bit like the daft Trucker Hat fad.

When New York bounced back from its 70’s ‘Taxi Driver’ nadir, Giuliani was given credit for its revival, people proposed all sorts of theories, such as a trickle up effect from cleaning subway cars, others pointed out the obvious - perhaps its just a natural cycle.

This week Levis announced a 5 fold increase in profit for the quarter. No doubt people will laud their business acumen, but if the fortunes of an entire city can be cyclical then the fashion cycle of hipster to mainstream to hipster is almost certainly so.

I suspect the cult jean manufacturers True Religion and Seven for Mankind will shortly go the way of designer jeans after the 80s, and be adorning thrift shops everywhere. They are exactly out of phase will Levis.

APP.COM - Levi’s second-quarter profit jumps almost fivefold

Who is the leak?

Wednesday, July 6th, 2005

Cooper to talk.

My guess is that Miller Gossiped, i.e. the leak went Judith Miller (NYT) -> Administration -> Cooper (Time) and Novak (WaPo).

Whether there is any evidence that Plame’s name went twice around the merry-go-round (Administration -> Miller) is another matter.

Whatever the scenario, what amazes me is that few people seem to question that this was a vindictive act rather than a cockup.

Dark matter, Dyson spheres, alien life and New York

Tuesday, March 8th, 2005

Ahem

Who will buy the cool companies?

Tuesday, January 18th, 2005

The Internet Stock Blogoutlines the case that Yahoo is most likely to buy six apart, because “Yahoo! has no blogging platform”.

Dave Pell pointed out an interesting idea, that when a large company makes an acquisition in a particular area, then it is difficult for them to acquire a competitor to it, since there would be internal resistance or operational complications from the existing team within the company. Consolidation tends to happen on the outside.

On that basis, Google has Blogger and Microsoft has Spaces. So maybe Yahoo would buy Sixapart? Perhaps, since Google have Picasa, Yahoo could also buy Flickr.

With Sixapart and Flickr, Yahoo would have added two formidable services to their arsenal.

Why this year is the year of VOIP

Monday, January 17th, 2005

People say that Hungarian is the language of the future, and it always will be. Similarly, you get the feeling that speech recognition is the technology of the future and always will be. Until recently the same was true of Internet telephony.

There are many technologies that fail because they don’t pass the ‘good enough’ test.

Having noticed that more and more friends are using Skype these days, it seems that VOIP passes the good enough test, for once the marketing blurb is right - it just works.

In fact, beyond that, two recent examples illustrate that it is now better than other means of telephony.

Example one: a friend’s cellphone ran out of juice, he resorted to war driving to find an open wifi network to contact me, his web based email didn’t work, couldn’t get a good enough connection to Instant Message me, but VOIP worked just fine.

Example two: a friend called via VOIP from India yesterday. The VOIP worked just fine, better than an Indian landline at $3 a minute, and when calling a US cellphone, it was the cell carrier that dropped the call.

VOIP is not only much much cheaper, but it is better.

Predictions for 2005

Tuesday, January 4th, 2005

Predictions for 2005:

1. Wikiyahoo - Tagging/Folksonomies become the tech talk of the town. Flickr gets acquired

2. Googlets - People cash out and leave Google, creating a startup frenzy in SF

3. An Englishman

Is Firefox the sign of long term problems at Microsoft?

Tuesday, November 23rd, 2004

Microsoft is caught in a potential pincer movement where it will have to:

1. compete in a consumer market where MP3 players, media PC’s and laptops will be sold as luxury goods with value-added hardware and software design, something that is not Microsoft’s strong point.

2. compete in a business market, where the vulnerabilities of buying into a monoculture cost time and money.

As Firefox continues to grow its market share, the difference between now and the Netscape days is that Internet Explorer is often a disease ridden product. The advantage of having it preinstalled on most machines is outweighed by genuine benefits of switching, and large corporations have IT staff that will do that for people, to save time and money. It is not hard to imagine a headline - ‘Merrill Lynch to switch to Firefox’.

A friend was recently dissing a competitors use of Apple Mac’s for their Internet cafe business, why would they use a niche product, which is more expensive.

Well, these days a Mac is less costly because it is less prone to viruses, spyware and adware.

Microsoft’s business was built on the fact that if you had the same OS and software as other people, it was easier to share information with other people and things were easier and cheaper to maintain. Monopolies were a good thing in software and users benefited.

Then came the Internet, and monopoly software was open to attack from around the word.

These days most communication is over a network that doesn’t care what plaform you use and documents based on standards that can be used by any vendor’s application.

As the proprietary standards culture has migrated to the open standards culture driven by the Internet, proprietary software has become victim to the innevitable problems of a monoculture - it is vulnerable to disease and therefore costly to insure against attack.

There is nothing new in stating that Microsoft has problems with its virtual monopoly. However businesses will still buy Microsoft’s products - or maybe not, it seems that the real threat is that the people who can save most money by switching to rival platforms are not individuals but large corporations, Microsoft’s bread and butter.

Subservient Chicken changes rules of advertising

Friday, April 16th, 2004

Alexa today shows a traffic rank of 1,255 and a 1.5% reach for Burger King’s subservient chicken. Related Info for: subservientchicken.com/

Trying to create an Internet meme like this is hard, but Burger King have pulled it off.

What is likely in the future is that savvy advertisers will track sites like Technorati and endorse new memes as they take off.

Megatrends - then and now

Thursday, January 22nd, 2004

GSReport:Megatrends

Looking back at someone looking back at someone looking forward.

“The 1957 launch of Sputnik and the first space shuttle launch in 1981 were ‘far more important to the information society than to any future age of space exploration.’”