Spiral Frog

Many folks have weighed in on Spiral Frog’s announcement of its deal with UMG today.  Based on what I’ve read (I have yet to try the service), I’m skeptical that it will move the needle in digital music.  The DRM required and the constraints such as having to log onto their site once a month may be too much to attract a mass market. 

That’s not to say the idea is a bad one.  Offering consumers an ad supported option makes sense as many will opt for this instead of paying a premium.  For instance, I think ad supported content will prove popular in the mobile platform.  I might choose to sit through an ad or series of ads instead of being dinged for the ringtone I want to download.  Like the free PC companies back in the 90s, adverse selection is an issue — the people that choose to not pay will often be the people advertisers don’t want to reach. 

At any rate, Spiral Frog looks to have an extensive management team and has been flying under the radar for a while.  They and UMG should be lauded for trying a different approach to music distribution and, if anyone can sell ads, it ought to be Spiralfrog given the background of their CEO.  But this will come down to execution and I fear that there will be too many hoops for consumers to jump through.  I hope I’m wrong.

Next week, I’ll write about a new music business model that I’m more optimistic about.

Sony’s Catch of the Day

GrouperPrice — $65 Million.   Congrats to Josh Felser, Dave Samuel and the rest of the team for being one of the first exits in the consumer-facing video-sharing space.  The company started providing a software to enable private media sharing via p2p.  While that model probably had a slower growth curve due to the download required, they were savvy in sensing the shifting winds towards consumer video sharing and tacking accordingly (okay no more marine metaphors from now on).   I wonder if it will now be like finding a date to the prom — ‘old’ media companies looking for dates to take to the dance and video sharing sites courting suitors…I digress.  Sounds like a great outcome for the Grouper gang and not all a bad investment for their investors.  Congrats all.

Zillow

Zillow is a fascinating site.  It is essentially a UI to enable users to query real estate databases for information on real estate.  Interested in that house for sale on the corner?  Put its address into Zillow and, assuming they cover your area in their database, you can get back an estimate of its worth, its taxes, square footage, information on the prior transactions and more.  They’ve mashed it up with Google Maps so you can even see similar info for the other houses in the neighborhood. 

While real estate information has been available through MLS, it has typically been the province of real estate agents and other third parties who trade on this information asymmetry.  Sites like Zillow and the internet in general ought to be disruptive to the real estate industry by reducing information asymmetry and enabling a marketplace of buyer and seller.  Don’t get me wrong, I don’t think real estate agents will be disintermediated anytime soon nor should they be — the best ones add real value whether it is in helping a seller prepare, market and sell their property or helping a buyer during an auction and purchase process including the paperwork, etc.

However there will be disruption.  I predict more real estate agents will go to a fixed fee for services rendered so as to compete and differentiate themselves from their variable commissioned peers.  This should especially be true for agents on the buy-side where incentives can be misaligned.   More buyers and sellers will find each other through the internet and simply pay someone to do the paperwork.  And sites like Zillow, eBay and Craigslist will be well positioned to capture value from operating marketplaces that help match buyers to sellers.

The Best Digital Music App for Mobile: Podcasting

I just reviewed Sprint’s Power Vision service at length including its digital music offerings.  One key feature it lacks is the ability to subscribe to and access podcasts.  This is the best digital music application for mobile phones with today’s technology and infrastructure:  You don’t need a persistent connection to consume the audio, as you do with streaming radio (or TV).  Instead, the content can download in the background while you’re sleeping.  And with Flash memory cards and the state of the art, phones have enough storage to be able to potentially store hours of podasts.  You don’t need to navigate through multiple screens to find, purchase and then download individual tracks (which are then incompatible with your iPod).  Instead, it involves a one-time setup to specify the feeds you wish to subscribe to and other preferences — what I’d like to be able to do is be able to export the podcasts I have set up in iTunes (or any similar directory service like Odeo or Podomatic), along with the other pertinent metadata to my mobile phone (via Bluetooth or SMS?), so that my phone (and my service) automatically "know" which feeds to pull, how often, etc.  Now iTunes would probably only enable this for an Apple phone (and have the two automatically synch), which would continue to roil its critics while its fans would embrace the ease-of-use. 

Because podcasts are based on the ‘open’ mp3 protocol, this would require a degree of openness from the wireless operators, which they have so far not been willing to embrace for legitimate reasons — e.g. their all-you-can-eat data plan pricing may not support the scale of data from mp3 podcast downloads if they’re not getting any additional revenue from the content provider.  Ironically, in light of the ongoing net neutrality debate, this is a case in which the operator could choose to charge the content provider a usage-based fee to keep their content free to the end user and in return for additional data that the content provider could then use to monetize their content via advertising.  One of the biggest obstacles to the monetization of podcasting via advertising is reporting and measurement.  However, since carriers control the network and can influence the client (via the handset makers), they could build in mechanisms to improve the reporting and auitability for the medium.

At any rate, as a consumer, I don’t care how it happens as long as I can listen to my various podcasts one my phone provided that it’s easy to set up and it doesn’t cost me more than what I’m paying for my data plan.  Now is that too much to ask?

Sprint Power Vision

This past March, I received an email from Sprint inviting me to participate in their Ambassador program.  They’d give me 6 months free service and a Power Vision phone (which I get to keep) in exchange for my giving them feedback.  Although I’m sure it was part of their motivation, there was no obligation to blog about my experience.  So I signed up.

Power Vision Service: Sprint’s Power Vision enables users to watch TV, listen to radio, download music, play games, send pictures and, of course, surf the web.  There are ancillary services as well — for instance, Sprint rolled out a service in which you could send them pictures of your meals and they’d send you personalized feedback from a nutritionist.  I didn’t try this out (too many steps in the process), but I did try many of the services…

TV – I’d been skeptical of this but there is a wow factor to being able to watch ABC News on your phone.  The video was at times choppy/unwatchable but it wasn’t bad for the most part.  My gripes here are that there were two navigation menus for video — one for live TV, powered by MobiTV, and one for VOD in the form of clips.  There has to better menus to present this information in one unified way.  The content selection was a bit sparse but enough of to let me kill some time at the airport waiting for a plane — it is this sort of downtime when one is out and about that mobile TV is best for. 

Radio/Music – I was able to access streaming radio stations, powered by MSpot, and download music from a store, powered by Groove Mobile.  The radio had a decent selection for what it is — they are not trying to replicate the choice one has with internet radio or podcasting, but rather offer listening options that will appeal to many.  I downloaded a number of tracks from the music store.  The instant gratification of typing in a track and downloading it to my phone to listen to it right away certainly upped the wow factor.  The store was hard to navigate however.  Part of this is based on the information architecture, which I understand — the constraints imposed by the form factor and network access of a phone pose a huge challenge.  But I wonder if there are techniques to minimize steps in the navigation and purchase process or at least speed them up.  Like maybe there’s a way to "Ajaxify" the experience so that you’re not calling out to the server at each step but that the server is pre-fetching content that you may navigate to as a way to speed things up.  Finally, each downloaded track (at $1.99 or $2.50) costs much more than what iTunes charges.  I get that this is for the convenience factor but still, I think consumers will bristle at this.

Games – I’m not a huge gamer but did play around some.  While I didn’t have to pay for these games, my gripe here is that a user if often asked to pay before they know they want to buy it.  Some of them do have a free preview but others didn’t.  Better to have a subscription service with unlimited access to a number of games.

Broadband Wireless
– One of the greatest uses I got out of the service was the EVDO broadband wireless network access in which I could use my phone as a modem for my laptop.  This obviated the need to pay for TMoble hotspot access at Starbucks, and I even used it for a couple of business presentations when I had trouble accessing the internet in the conference room.  I got around 200 – 300 kbps, which is nice for surfing around and doing email, but not enough for applications like watching broadband video.  Verizon has a similar service and was a good 100 kbps faster than Sprint’s when my colleague and I checked bandwidth speeds from LGA airport.

Samsung SPH-A920 - This was the Power Vision phone they sent me.  On the plus side, it packs in a lot of features like the media player for music & TV, a 1.3 megapixel camera with Flash, the ability to use it as a modem (you’ll need to download extra software to your desktop), and long battery life.  On the down side, it’s pretty ordinary looking from a design standpoint, the media player could be more intuitive, you have to wait about 4 seconds for the camera to take the picture and, most annoying of all: the hands-free headphones that come with the phone are nearly unusable.  The left ear bud’s cord is longer than the right’s for when you’re talking on the phone hands-free, but the right ear cord is so short that it often fell out of my ear.  The phone has come down in price and I think it’s a good value for what you get provided that you can live with its quirks.

All in all, Sprint’s Power Vision tries to pack in many services for many types of people.  Unfortunately it doesn’t do any of the services particularly well.  As a business user, I would pay extra for the EVDO wireless access.  For consumers, it is still an early adopter proposition, i.e. pay a premium for a service that isn’t quite ready for prime time.  I expect this calculus to change in 1-2 generations as they learn and improve the product.   Finally, there has got to be a better name for this than Power Vision. 

Believe the Hype (Machine)

The Hype Machine aggregates postings from various mp3/music blogs in an easily digestible form.  It’s basically a Google News for music.  And it’s a great service.  Great to keep tabs on new music.  It has a heavy indie music bent (not a bad thing), but mainstream artists like Gnarls Barkley can also be found.  Each listing on the site contains options to let you listen to the song, view the original blog post or purchase from iTunes or Amazon.  I searched for Belle and Sebastian, one of my favorite bands, and found several tracks I’d never heard, mostly bootlegs from shows.  I’m listening to their cover of Sympathy for the Devil as I write this (terrible recording but beggars can’t be choosers).  The site offers several listening options and I used the Flash player, which kept buffering but it could have been my internet connection. 

I’m sure many of the tracks posted by the blogs that Hype Machine links to weren’t authorized for such distribution by the copyright holder, but the site seems to take copyright seriously.  In fact it even does a service to such copyright holders by showing which sites are posting their tracks so they can decide whether to go after the offending site or leave well enough alone.  Business-model-wise, I’d guess it’s revenue from ecommerce referrals, advertising + a strong dose of being a labor of love.  Whatever it is, it fills a need and I hope it sticks around. 

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