It’s been a tumultuous several weeks for Twitter, Reddit and the social web, during which we’ve seen both its great potential and confounding dark side. There was the recent AP account hacking – which instantly (but temporarily) drained some $200 billion from the stock market – the mass confusion of the Boston Bombings (and tragic repurcussions), and, well, insert-specious-news-rumor-of-the-day here. It calls to mind a famous arachnid-movie quote (by way of Voltaire): “With great power comes great responsibility.” It’s important to note that Twitter  is a platform, not a news service, and also that regardless, no one outlet can control the internet anyway: That’s the beauty and curse of the beast. So when news breaks it’s about two things: accuracy and distribution.  Right now we’re stuck with a drunk leaf blower in a flour factory. I’ll be the first to champion these tools as platforms for change, opportunity and knowledge sharing, but it has become clear we – and especially the reeling news media – are in need of a system that helps Twitter et al sort through the haze of breaking news and get the facts straight, faster. The current model and tools are not clearing things up – they are adding to the mess. A centralized, collaborative evidence table Sifting through the mountains of analysis on the bombings alone, I couldn’t help but think of the customized Twitter Nascar hashtag page that was put together in 2011, and how it tied in nicely with the New Yorker digital “evidence table” it describes for Reddit users. So one first step I propose is a one-stop place or system in times of important news or mass emergency. Literally just a single agreed upon place to gather the facts, or a system of checks and balances free from speculation. Like a central hub for help to be channeled and extra information provided – a bit like an active Storify stream. This feels like a simple fix to a complicated problem at the source. Clearly there are huge questions about who administers it, but one thing is clear: It must be solitary and held to a strict code that is pre-agreed upon, possibly among a cross-collaboration of the major newspapers. For instance, each might host the same page so traffic stays where the trust is with the user.  There is no speculation: Simple fact dissemination and information being released – only after  it is verified – so that the news-consuming public has a go-to source that is consistent. The ability to deal with errors Imagine if Twitter or Facebook could lower the relevancy of an incorrect tweet or post in real-time so that bad information was less likely to be seen. Reddit and pals is a more difficult kettle of fish because of their very nature.  We will need to help them help themselves by providing clear information in order for them to do what they do best – engage with it. The Atlantic wrote recently about the need to undo things on Twitter because it is currently a one-way system that, while capable of self-correcting over time, is pretty flawed when it comes to doing so in the moment. And so we need a system that enables users to revoke or modify what has been said so that it is instantly identifiable. Internet fundamentalists find this idea uncomfortable but many I suspect would cherish the ability to be alerted to incorrect information so the continued dissemination of knowingly false info can be minimized.  A technical nightmare sure, but something to work towards. A need for innovation and cooperation Right now big data is not being used or harnessed by news organization beyond visualization or longer-form pieces but I imagine a time (and not too far in the future either) when we see news outlets using Twitter and company in a much smarter fashion than simply looking at volume spikes and “first-grabs.”  So for instance, outlets might soon use data to predict, locate and activate “sleeper-unit” journalists (and trained citizen journalists) who are armed with Facetime technology – or simply volunteer individuals streaming through a phone that a news outlet is able to instantly locate via GPS. It’s interesting to note that Twitter has just appointed its first Data Editor who is charged with “explain[ing] how this phenomenon works.” We have two options when it comes to “fixing” truly crucial news and real-time mass events: 1) Assume that what we’re doing now works but will need a few tweaks, or;  2) Realize that our current system is no longer tenable and so needs a complete overhaul. Any honest appraisal will quickly come to the brutal truth that the current system is failing, and so needs to be rebuilt from the ground up. In the short term, we will need to move toward something like a system of “Flash tweets:” site-wide notifications, that simultaneously tweet, post, alert, offer a donation system, etc to news sites when major events transpire. I’d like to see a system like this fleshed out by the social juggernauts as they further flex their news muscles. Paul Armstrong is founder of  Digital Orange Consulting. Contact him via paularmstrong.net, or on Twitter @paul__armstrong or @TheMediaIsDying. Have an idea for a post you’d like to contribute to GigaOm? Click here for our guidelines and contact info. Photo courtesy Edward Meyer. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.The 2013 task management tools marketHow consumer media will change in 2013Examining the rise of crowd labor platforms in 2012    
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It started innocently enough. “Let’s get together and jam” lead to a rehearsal song list, and  the possibility of starting a band. I had about a week to organize and prepare for a mostly full band rehearsal. We don’t have a singer yet, so that duty, sadly, has fallen on me until we get someone. As noted on this site before, I’m a guitar player. By nature, I’m a very organized an prepared individual, and I wanted to get everyone prepared for the songs ahead of time. After I sent out links to YouTube clips of the songs to the other members, it was time to get to work. Here are the apps and devices I used that made my life a lot easier during this process. Practice, practice, practice One of the nice things about being the person everyone points to and says, “pick some songs” is, well, the songs I picked I already pretty much knew. However, there’s a huge difference between kinda knowing the song, and knowing it enough for a rehearsal. The first thing I did was create an iTunes playlist with the tunes. When I was driving around, I played nothing but those songs to get them stuck in my head. When it came to actually putting my fingers to the fretboard, I used AmpliTube on my iPad for 90 percent of my practice — the other 10 percent were with my live rig to get the sounds right. One nice thing with AmpliTube is it will load the songs from my Music.app playlists and let me play along to them, as well as speed up and slow down parts. If there was a part I found particularly tricky to learn, I used Riffstation on OS X to loop that segment while I used the AmpliTube Orange amps to play along. For the first set of rehearsals, I also didn’t worry too much about getting the solos note-for-note, and instead focused on catching the feeling of the solo. I used my Fender Squire USB guitar for most of my practicing since it easily plugs into my iPad and Mac. For what I was doing, I didn’t really care about my overall guitar sound; I just wanted to balance the volumes so I could hear both the song and my guitar equally. Then, I practiced. A lot. Charting I was asked by the bass player to chart the songs for a cheat sheet during rehearsal. While there are plenty of programs that will let you chart songs, I found them to be too advanced for my needs. What I really just needed to do was have the lyrics and then put the chord changes over it. So, I used Pages ($19.99). I went to a lyric website, cut and pasted the lyrics into Pages, and then added the chords and beat markers over the lyrics. This worked fantastically. In addition to giving the bass player a cheat cheat, I also had something I could reference during rehearsals. If I couldn’t remember how the chorus went, I had my own little cheat sheet. I printed out charts for her and the drummer, and had my iPad ready for my reference. Running the rehearsal Generally, I frown upon singers who use cheat sheets live, but in practice, obviously they are fine. Plus, I’m just filling in until we get a real singer (hopefully soon, I really can’t sing). I needed cheat sheets where I could see them while standing up, and I didn’t have a music stand that went that high. Plus, I wanted them right in my face. For my cheat sheets, I used the iKlip 2 ($39.99) from IK Multimedia. It’s a mic stand holder for your iPad 2, 3 or 4 in a fairly secure fashion. Note: it slides into the holder, so I’d be a cautious using it during gigs. Not because it’ll fall out, but it’d be easy for someone to just snag the iPad during breaks. So, if you use it, make sure you take the iPad off when you walk off stage. I was able to position my iPad with the iKlip so I could read the lyrics while warbling. A minor pet peeve is that I can’t get the iKlip to hold my iPad in the portrait position on the boom portion of the stand. Instead, I had to clip it on the main stand just under the boom. If a note about how we played something came up, I just edited the Pages document with the note. Usually, this is how long the solos were, or if we wanted to change how a bridge went. Final thoughts I’ve written before about how I continue to be amazed at the way technology continues to improve how I approach music. It’s been 20 years since I’ve run a rehearsal. Back then it involved a lot of cassette tapes, CDs and photocopies. While OS X continues to be a starting point for my music, I find now when it comes to rehearsals, everything I need is on my iPad. I also have all my music theory and chord books in the Kindle app, so if I need to learn a chord I’m not familiar with, it’s very, very easy. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Forecast: Tablet App Sales To Hit $8B by 2015The 2013 task management tools marketThe state of cross-platform media measurement    
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According to a blizzard of anonymous news reports, Marissa Mayer is working feverishly to land the biggest fish of her career as CEO of Yahoo: namely, the $1-billion-plus acquisition of New York-based Tumblr, the ultra-hip blog network — the two are reportedly involved in discussions that could come to fruition as early as Sunday. Although Tumblr fans seem horrified by the idea, this one makes a substantial amount of sense for both sides. Of course, as Om and others have already mentioned, there’s no guarantee this deal will actually be consummated: it could fall apart on valuation, as so many deals do — or Facebook could swoop in with a much higher offer and snatch Tumblr out of Yahoo’s clutches, the same way it did when it stole Instagram away from Twitter last year for close to $1 billion. It makes Yahoo look desperate — because it is Even if the deal does get done, one of the risks for Mayer and Yahoo is that the company could look desperate by paying more than $1 billion for a site that had revenues of less than $15 million last year (although CEO David Karp has said that figure should hit $100 million this year). That’s an almost bubble-like multiple for a company, and there will likely be plenty of criticism from investors who believe that $1 billion could be better spent elsewhere — in other words, on businesses that would make Yahoo a better return. But the painful fact is that Yahoo doesn’t just look desperate — in many ways it is desperate. Mayer has made some changes since she took over the ailing former web portal, including the acquisition of Summly and a number of other mobile-focused startups and services, but the company still needs to make some aggressive moves if it is going to jump-start any growth at all. And since Yahoo has about $4 billion in cash on hand, it can arguably afford to make a big bet. Yahoo buying Tumblr makes sense. Tumblr is only big, cool, newish social platform that Yahoo can afford.— Henry Blodget (@hblodget) May 17, 2013 For Yahoo, the addition of Tumblr would do a number of things: because of the size and profile of the deal, it would make a major statement about Mayer’s intention to do whatever it takes to revitalize the company, and it would also send a signal to Facebook and Google — and even Apple — that Yahoo is a potential force to be reckoned with when it comes to potential acquisitions. Is doing that worth $1 billion? That’s for Yahoo’s investors and board of directors to decide. Just as important, it would inject some much-needed life and energy into the somewhat stale lineup of content that the company currently relies on, which caters more to the over-50 set than it does to anyone in the much-desired 18 to 25 demographic. More than any other network, Tumblr is the platform of choice for media-obsessed teens and 20-somethings, who spend massive amounts of time sharing photos and videos and animated GIFs on the site — an engine of potential value that Yahoo desperately needs. Tumblr gets a massive exit This doesn’t come without its own risks, of course: As a number of observers have noted, Tumblr’s content contains a large quantity of not only mature or arguably offensive content but outright pornography, which many argue is the source of its massive traffic numbers. How Yahoo (or Facebook for that matter) would deal with this kind of content remains to be seen. 3 q's for Yahoo: 1) Can you convert Tumblr users to Yahoo products? 2) Can you monetize Tumblr PVs? 3) What to do w/ all that Tumblr porn?— Mark Zohar (@markzohar) May 18, 2013 For Tumblr, meanwhile, being acquired would solve a number of problems — the main one being that the company has gone well beyond the “we’re a startup so we don’t really have to make money” stage, and is facing increasing pressure from the investors who have given CEO David Karp more than $125 million in venture financing, an investment that values the company at about $800 million. Accepting a giant check from Yahoo would take care of that problem in one fell swoop, especially if it was all in cash. With a major company like Yahoo as a partner, Tumblr could connect its massive audience of users to the firehose of ads and other monetization methods the giant web portal has, and potentially generate much more revenue than it could have by itself. The only lingering question at that point is whether Tumblr fans decide that Yahoo is poisoning the well of social content and community on the site, and decide to flee for greener pastures. In other words, does Yahoo make Tumblr into YouTube — a successful standalone network that can grow and prosper on its own — or does it become MySpace? The only scenario where a Yahoo-Tumblr combo works is if Yahoo keeps Tumblr separate in the same way Google managed YouTube.— Mark Birch (@marksbirch) May 18, 2013 Post and thumbnail photos courtesy of Shutterstock / ollyy and Albert Chau Related research and analysis from GigaOM Pro:Subscriber content. 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When I opened up my first package from online women’s clothing startup Everlane, an immediate smile spread across my face. The company had wrapped the cashmere sweater I bought in a soft, silky Everlane-branded cream-colored bag. It was a very basic choice — not something meant to blow your mind — but a little detail that resonated with me in an immediate tactile and emotional way, and later in a branding way. The same smile appeared when I was filling out the brief quiz for True & Co., a new startup that’s trying to rethink how women buy bras. The company asks you a variety of questions that are meant to find out the best shape and size of your bras, and it has put a lot of thought into doing this in an innovative, creative, and tactful way (boobs can be a tricky subject). For example one quiz question asks “Do your cups runneth over?”, basically asking in a playful way if the bra you’re wearing is too small. You can’t help but laugh at that, easing the tension that is natural when you’re trying to think about the shape of your chest. Email marketing company MailChimp has led the way for using this type of language in an innovative way to develop a brand and an emotion connection and deliver better results. Everlane and True & Co are creating new online e-commerce experiences, and they’re using emotion and design to do it. Warby Parker has famously grown its online glasses business in this way, too. These are the new wave of e-commerce companies, ones that could rival not only big box retailers but also the first-generation of e-commerce companies like Amazon, or clothing companies that have moved into selling items online. I think Fab founder and CEO Jason Goldberg put it best in an article he wrote last month on his personal blog: The third wave of e-commerce is all about bringing emotional purchases online. Non-commodity products. More thoughtful purchase decisions.  I like to call this Emotional Commerce. This is categories like furniture, home accessories, home textiles, fashion, art, and jewelry. These are categories where people care about having something special in their lives. It will be the Warby Parkers, the Everlanes, the Net-a-Porters, and the Birchboxes that will innovate around using design and UI to get you to part with your money online in exchange for a product that adds a little something extra to you life, your home and your wardrobe. At our RoadMap event in 2012, we highlighted a discussion between Birchbox CEO Katia Beauchamp and Warby Parker co-CEO Dave Gilboa, who discussed some of these ideas. For our next RoadMap event in San Francisco in November, we’ll continue that theme (tickets won’t go on sale until this summer, but you can sign up to get first access here). The lesson for e-commerce startups, product developers, website designers, and anyone else building something that other people will be using — in the physical world and the digital world — is that the small details matter. A lot. Om recently gushed about well made shoes: I don’t just love the shoes because of how they look — though that matters — but I also look at where the leather comes from, how it is stitched together and what kind of craftsmanship has gone into it. From shoe trees to little patterns on the toe to the packaging to the font on the label, all of those little things add up to the design aesthetic. And that way of thinking about the design aesthetic extends to other things, including website design. Yes, fonts matter, and the layouts matter, but so does the relative relationship to the kind of content, the speed of the web service and even the screen size and how it all correlates to me. Design might be a buzz word in the tech world in 2013, and some high end designers might not necessarily like the bastardization of the term and its embrace by the tech industry. But in many ways, designers and design thinking is starting to be valued like never before at tech companies (and let’s face it, all companies are becoming tech companies these days). This has led to better and higher paid positions by designers and new products that are connecting with us on an emotional level. And that’s a good thing. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.NewNet Q4: Platform mania and social commerce shakeoutNewNet Q4: Platform mania and social commerce shakeoutGigaOM Research highs and lows from CES 2013    
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The annual Google I/O event has come and gone, with plenty of news specific to Android. While the event focuses on developers, consumers will see benefits in Android thanks to improvements in Google’s core services and many new APIs for developers to use in Android apps. There was no new Nexus phone, no update to the Nexus 7 tablet, nor a new Nexus 11 tablet. But for those willing to shell out $649, there is a modified Galaxy S 4 coming soon. Google announced that in June, customers can order the handset through the Google Play store. Instead of the phone running Samsung’s customized TouchWiz software, it will instead run on pure Android, just like the Nexus 4. That means it will get future software updates directly through Google and not Samsung or a network provider. Of course, some of the newest Samsung features won’t be present on the phone: I wouldn’t expect Samsung’s new camera modes to be there, nor would I expect gestures to work for hands-free scrolling or swiping. Still, in light of no new Nexus hardware, the unlocked handset could appeal to hardcore Android enthusiasts. So without the release of Android 4.3 at Google I/O, does that mean Android hasn’t improved? Not at all; in fact, Google essentially boosted Android’s software without needing to wait for carriers and handset makers to upgrade the software. How did this happen? A large part of the 3.5 hour Google I/O keynote was dedicated to new Android services and APIs, plus a new application called Hangouts. The new Hangouts app replaces Google Talk and is Google’s effort to unify its messaging platform. The app supports video calls with up to 10 participants, SMS notifications of incoming chat requests when offline, text chat and works across platforms: You can communication with other users on the web or on iOS devices. Hangouts also highlights a great new feature in Android: Support for synchronized notifications. If you get a notification on one device and take action, the notification won’t appear on other devices or in the Chrome browser. Google also introduced its music subscription and discovery service called Google Play Music All Access. For a $9.99 monthly fee — $7.99 if you start a 30-day trial by June 30 — you get unlimited access to stream tracks thought the Play Music app and on the web. Human curators surface top songs and albums while music recommendations come from Google’s Knowledge Graph and your Google+ circles. Gaming got a supercharge in Android as well. Developers can use the new Google Play Games services that allow cross-platform gaming complete with achievements and leaderboards. Game progress can also be saved to the cloud, allowing gamers to pick up where the left off, even from another device. Android also saw one other big announcement this week, but it didn’t happen at Google I/O. The Bluetooth SIG announced that Android will gain support for Bluetooth Smart and Smart Ready devices in the coming months. That’s likely to be included in an actual Android release as some developers told me that Google will be completely changing the Bluetooth software stack in Android. Regardless, this means widespread support for Bluetooth 4.0 Smart and Smart Ready accessories such as watches, heart rate monitors and other low-powered companion devices. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.What the Google-Motorola deal means for Android, Microsoft and the mobile industryAnalyzing the wearable computing marketTakeaways from mobile’s second quarter    
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Tumblr’s fate could be decided Sunday by Yahoo’s board of directors. AllThingsD reported late Friday that Yahoo is closing in on a $1.1 billion deal for the site, moving quickly to cement what would be the biggest deal of CEO Marissa Mayer’s tenure at the venerable but lackluster internet pioneer. After reporting Thursday that Yahoo was considering a number of options for Tumblr, including partnerships or strategic investments, ATD reported Friday that Mayer had decided to go all in. Om reported Thursday that Yahoo was worried about counteroffers from Facebook, much how Facebook stole Instagram from Twitter after Twitter co-founder Jack Dorsey’s courtship of the photo-sharing site. Now the board plans to meet Sunday to consider giving final approval to the offer. Tumblr’s backers will likely be pleased with a $1.1 billion price tag, especially if, as reported, it involves cash However, it’s far from certain that such an outlay would do anything to revive Yahoo’s fortunes. Mayer certainly has been trying to bring new blood into the company of late, snapping up a number of smaller mobile startups before focusing on Tumblr over the last month. Yahoo has scheduled a press event for Monday evening in New York to discuss “something special,” but it wouldn’t hint at anything else. We’ll be there to cover the event, but in the meantime, here’s Tumblr founder and CEO David Karp’s appearance at our paidContent Live conference in April, discussing his company’s fortunes: Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Facebook’s IPO filing: ideas and implicationsThe state of cross-platform media measurementSocial third-quarter 2012: analysis and outlook    
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Toward the tail end of Google I/O on Friday, Sunil James, a Google product manager (on left in picture), and John Cormie, a software engineer focusing on networking for Google Compute Engine (GCE), showed off new network capabilities for GCE that can enable hybrid clouds running between GCE deployments and on-premise data centers. GCE customers are now able to do things like establish virtual private Layer 3 networks and assign static public IP addresses to instances, James said. Connecting networks will also become possible. And a load-balancing service is on the way “as part of the native fabric for Google Compute Engine,” James said. Developers interested in trying out GCE load balancing can fill out a form to do so. Developers can also sign up for early access to all emerging Google Cloud Platform features. The load balancing and routing services are the sorts of things that could help more businesses make the decision to try real projects on the newly publicly available Infrastructure as a Service (IaaS) piece of the Google Cloud Platform. And the new capabilities move Google a few steps closer campaign to becoming a top, widely used IaaS provider — if not one day bigger than Amazon Web Services then at least No. 2. That position is already feasible for Google as it is. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Takeaways from the second quarter in cloud and dataThe promise of SDNs in the enterpriseA near-term outlook for big data    
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Redbox Instant by Verizon is going to bring its streaming service to Google TV devices soon: The company demonstrated a prototype of its app at Google I/O Friday, and a representative told me that the app will launch in earnest within the next few weeks. After that, the company is going to launch a channel on Roku media streamers. Check out a photo of the app UI below: Redbox Instant by Verizon’s prototype app was on display on an LG Google TV that ran the next version of Google TV that is based on Android 4.2.2 aka Jelly Bean. That version will come to Google TV devices in the third quarter of this year, but I was told that the Redbox Instant app will be available before that, and that is going to work just fine with the current version of Google TV. However, the service won’t be available on Google TV devices using an Intel processor, which means that owners of the Logitech Revue and other first-generation devices won’t be able to use it. Redbox Instant first launched on select Samsung TVs and Blu-ray players as well as PCs and mobile devices in March. The joint-venture between Redbox and Verizon has since added support for Microsoft’s Xbox 360 as well as select LG Smart TVs. I was told by a representative Friday that the company is looking to add support for Roku players soon after rolling out the Google TV app. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.OTT technologies and strategies for broadcastersWhat the shift to the cloud means for the future EPGWho and what to watch in the new era of the living room    
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Data analytics star Tableau had a successful initial public offering on Friday, closing the day up nearly 64 percent at $50.75 per share. That means the company brought in about $254 million (it sold 5 million shares, while stockholders sold 3.4 million) and has a market cap of $2.9 billion. Shares have remained relatively steady in after-hours trading, trending down only slightly. “We’re thrilled,” Tableau co-founder and CEO Christian Chabot told me during a call after the market closed. One should hope so. Chabot and his fellow co-founders stand to make a lot of money if today’s closing price holds up, as does its sole investor NEA. The firm put $15 million into Tableau since it launched in 2003, and has rode that sum to profitability and more than $127 million in annual revenue. Here’s a quick chart (made using Tableau Public) showing who owns how many share and what they’re potentially worth. The company didn’t really need more capital to operate, Chabot said, but one of the primary drivers was to raise awareness of the company. It has about 12,000 customers, he said, but there are millions more possible users. As part of attracting them, the company is going to expand globally and is working to improve its reach across mobile devices, the cloud and the Mac operating system. “I don’t believe in the this whole ‘or’ philosophy with computers,” Chabot said. “It’s ‘and’” — meaning people will use desktops and tablets and smartphones. More prominence and more users singing its praises might also dispel the notion that Tableau is just about visualization. It has some fairly advanced features under the covers (as a commenter to my earlier post about the company’s influence pointed out), even if they’re hidden by the relatively simple user experience. “Tableau is not a visualization company, per se, it’s really an analytics company,” Chabot said. However, if the company really wants to expand its reach to everyone one who wants to gain knowledge from data — something Chabot calls a “timeless human need” — it might actually need to get simpler. More marketing can let potential business users know about new features like forecasting and data-extraction, but it won’t make a dentist is Des Moines better at formatting his data. After raising $254 million in its IPO, though, Tableau is in a good place to do whatever it has to. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.NewNet Q4: Platform mania and social commerce shakeoutNewNet Q4: Platform mania and social commerce shakeoutThe importance of putting the U and I in visualization    
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Some investors, particularly angel investors, may see equity crowdfunding as a threat to traditional venture capital. But not InCube Ventures. Over the past few years, the San Jose, Calif.-based life sciences venture capital firm has co-invested with accredited individual investors on a handful of deals.  On Friday, the firm went one big step further with the launch of VentureHealth, an equity crowdfunding site for biomedical technology companies. As report after report has shown, venture capital funding for life sciences companies has been on the decline. This week, for example, PricewaterhouseCoopers LLP (PwC) and the National Venture Capital Association (NVCA) revealed that venture funding in the life sciences sector dropped 14 percent in the first quarter of this year. VentureHealth wants to give health startups — both early, but particularly later stage — a new option for raising funding, while embracing a model that enables doctors, health care professionals and others with sufficient means to support companies addressing issues they care about. “The life sciences venture industry has been shrinking – there’s less capital available for really exciting companies,” said InCube managing director and VentureHealth co-founder Andrew Farquharson. “To the extent that we can mobilize capital into companies that need it, we’re meeting our mission.” VentureHealth isn’t the first attempt at bringing crowdfunding to health care. MedStartr and Health Tech Hatch offer entrepreneurs a platform for raising relatively small amounts of seed capital without giving up equity. And last week HeathFundr launched an equity crowdfunding site targeting medical device and other health entrepreneurs looking for Series A-range funding. But unlike HealthFundr, CircleUp and other equity crowdfunding sites that have recently emerged, VentureHealth doesn’t offer securities through a registered broker dealer. Instead of taking a commission on each transaction, it’s compensated through a combination of fees and carried interest, which is a percentage of the profits earned by investors when a company is sold or experiences another kind of liquidity event. While the amount can vary, the company said it will tend to be about 20 percent. That’s a decent-sized payout, but Farquharson said its model means that VentureHealth only wins when its investors win so it’s extra incentivized to find the best deals. Over the past decade or so, Farquharson and his co-founder Mir Imran, a medical inventor who holds more than 200 patents, have invested in a range of companies, from BodyMedia, a wearable technology company recently sold to Jawbone to epilepsy treatment company Neurolink. Given their track record and experience, he believes VentureHealth could give interested investors a well-curated selection of deals and entrepreneurs the extra support they may need. For now, Farquharson said, they interact with every accredited investor on the site but, when it’s implemented, the JOBS Act will enable VentureHealth to reach a broader pool of investors and expand its options. The site currently has no active deals listed, but Farquharson estimates that it could offer five or six deals over the next 10 months. Once VentureHealth scales sufficiently, InCube plans so spin it off as a standalone company. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Crowdfunding’s rapid growth and future opportunityConnected world: the consumer technology revolutionSocial 2013: The enterprise strikes back    
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Hydroelectricity generation exploits the tremendous height differential that occurs naturally at waterfalls or artificially at dams as water flows through the system. Now, efforts are underway to harness a differential of another sort for both energy storage and generation: the pressure under the sea. A Norwegian company called Subhydro is making forays into underwater hydroelectrical power plants, and Canadian company Hydrostor is creating an underwater grid storage system. Think of water rushing in through the open hatch of a submarine, and you get an idea of the forces at work underwater. Atmospheric pressure and the weight of the water combine to create pressures that compound with increasing depth. At a depth of 400 meters (almost a quarter mile), for example, the pressure is that of 40 atmospheres, one atmosphere being the pressure we experience at sea level. Subhydro envisions installing large concrete tanks at depths of 400-800 meters, and the deeper the better for maximizing energy generation. When the “hatch” is opened, water is allowed to flow into the tanks through a turbine that drives an electric generator. The more and larger the tanks, the longer the generation can go on. When the tanks are filled, the turbine can be reversed to pump out the water, a process that draws on the power grid and consumes energy. In this way, the pumped storage plant functions like an underwater battery that can be re-charged, much like a hydroelectric plant on dry land pumps water into an upper reservoir after it has passed through a turbine. According to Subhydro, the efficiency of the underwater plant is about 80 percent, comparable to efficiencies achieved at conventional plants. Integrating the pumped storage plant with wind or solar farms could create a grid storage system that harnesses excess renewable energy generation to pump out the tanks and flood them during peak hours of production. Another approach to underwater grid storage is in the works at a depth of 80 meters in Lake Ontario, just off shore of Toronto. There, Hydrostor will begin building underwater tanks that will hold compressed air. Surplus energy from renewables (wind, solar) will provide the energy to compress air from the atmosphere and pump it in to the tanks. To put energy back into the grid, the air is allowed to surface, driving generators as it expands back into the atmosphere. Hydrostor is partnering with Toronto Hydro to build the 1MW/4MWh compressed air energy storage demonstration facility. The system will run at 70 percent efficiency, according to Hydrostor. Earlier this month MaRS Cleantech Fund announced an investment in Hydrostor’s tech. Clearly, there are still some hurdles to overcome before energy companies everywhere take the plunge. The environmental impact of offshore submerged facilities will need to be considered, as will the building materials themselves. To withstand the underwater pressure, Subhydro is working with research partners to develop thin concrete reinforced with steel fibers, while Hydrostor’s system will use inflatable polyester bags to hold compressed air. Building underwater facilities is itself energy-intensive, so whether the process can be made cost and energy-effective will determine whether cleantech is ready to get its feet wet. Image via Knut Gangåssæter/Doghouse Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.The next generation of battery technologyHow the Energy Storage Market Could Pay Itself OffAEP: Deploying the Future of Backyard Batteries    
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YouTube announced this week that it is going to roll out its new channel design to all of its publishers at the beginning of June. All channels that still use the previous design will automatically be converted on June 5 — but the new channels are just the first step towards a bigger goal of unifying YouTube’s design across all platforms. YouTube Senior UX Designer Josh Sassoon and his colleague Tom Broxton, who leads the Monetization UX team at YouTube, gave a sneak peek at the multi-screen design principles that will guide YouTube’s future looks during a session at Google’s I/O developer conference in San Francisco Thursday. The big theme was eerily familiar to anyone following our I/O coverage this week: YouTube wants to unify its experience across all screens, the duo explained, while paying attention to the specific use cases for each and every screen. The duo showed off some design concepts during their presentation, with some featuring the same kind of tile-based design that has been dominating Google’s mobile design language lately brought to the desktop, and at least one playing with the same kind of multi-column design that Google just launched with Google+ for a possible redesign of YouTube’s homepage. Many of these things were just presented as examples of the design process, which is very data-driven and based on both A/B testing and traditional user research. Fun fact: YouTube has been passing out paper assignment booklets to select users, asking them to track when in the day they’re accessing the site and with which devices. However, Sassoon and Broxton also shared a few slides of what they called sneak peeks — not necessarily final versions of what YouTube will look like, but definitely explorations that hint at where things are going: Worth noting in this shot is that YouTube is trying to unify the subscribe button across platforms — which makes a lot of sense, given how much of a focus the site has put on channels. Also, take a look at how gorgeous this TV UI looks. And once again, there’s a theme of unification across its desktop, tablet, Android, iPhone and ultimately TV platforms. As for the current redesign: YouTube first introduced the newly designed channel page, dubbed One Channel, in February, and the site said that it has seen a 20 percent growth in page views on participating channels. All in all, more than 100 million channels have already opted in to the new design, according to a post on the YouTube Creators blog. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.How consumer media will change in 2013Controversy, courtrooms and the cloud in Q1Players and Strategies for Real-Time In-Stream Advertising    
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Database startup Drawn to Scale, creator of the SQL-on-Hadoop technology called Spire, is closing down. Co-founder and CEO Bradford Stephens officially announced the closure in a blog post on Friday. The company’s product, Spire, which provided full SQL support on top of the HBase NoSQL database, was one of the first products to try to blend Hadoop’s scalability with the robustness and familiarity of SQL. That’s now an increasingly crowded space (and has grown since that linked graphic was created). In March, Drawn to Scale expanded its support to MongoDB, as well. I wasn’t shocked when Stephens told me the news — questions about the four-year-old company’s financial health had been swirling for a while — but to hear of its financial woes was a bit surprising. His account in the post pretty much echoes what I had heard from others: “It seemed we had everything going for us — paid customers such as American Express, Orange Telecom, Flurry, and 4 others. Our technology worked brilliantly, we had a big hiring pipeline, and we had great media presence against our competitors who raised 10-100x more cash.” He added: “Yet five days before we signed term sheets for a big A round or sold the company, we started getting hit by a series of black swans — and we just didn’t have what we needed to recover. I’ll leave the public detail at that level, but I will say that paying employees’ health insurance out of your meager savings is a powerful incentive to change course.” Up to this point, the company had raised $925,000 from RTP Ventures, IA Ventures and SK Ventures. There’s no word yet on what will come of the company’s intellectual property. As Stephens — who’s now doing an entrepreneur-in-residence gig at Ping Identity and helping out other startups (including popular wardrobe app Cloth) — succinctly put it during a phone discussion, “We just don’t have the horsepower to keep running the company.” Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Scaling Hadoop clusters: the role of cluster managementThe importance of putting the U and I in visualization2012: The Hadoop infrastructure market booms    
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Who says Canada is boring? The mayor of the country’s biggest city is at the center of a crack cocaine scandal, and now U.S. blog Gawker is asking readers to chip in and buy the video evidence for $200,000. In case you missed it, the controversy turns on Toronto’s buffoonish mayor, Rob Ford, who has embarrassed the city numerous times in the past but has now outdone himself: Reporters from Gawker and the Toronto Star claim to have witnessed a clear video tape that shows Hizzoner sucking on a glass crack pipe and calling the leader of Canada’s Liberal party, Justin Trudeau, “a faggot.” The video in question is now in possession of shadowy figures who want cash for it. The Star, a respected newspaper, turned down an offer to sell it for $40,000 and Gawker, which says the price is now $200,000, has taken to Indiegogo – a site normally used to raise money for artsy people — to ask the public to buy the video. The “Rob Ford Crackstarter” (see pic at right) has 10 days to reach its goal and has already pulled in $26,000 as of Friday afternoon. Gawker’s gambit raises some very juicy ethical questions. First, while bringing down crack-smoking mayors is clearly in the public interest (see Barry, Marion), it’s less clear whether it’s acceptable to pay people who are likely serious criminals in order to advance the story. And while check-book journalism has been around for centuries, turning it over to the public could have unforeseen consequences. Until now, publicly funded journalism has been largely been contained to organizations like Pro Publica that launch investigations into things like patient safety and vote buying. Is the world ready for a publicly funded version of TMZ where everyone can pool money to see celebrity’s private lives? For now, the political dimensions of the scandal are moving too fast to assess the media fallout. We’ll report back next week on what happens to the tape — and the money collected by Gawker. (Image by Chris Howey via Shutterstock) Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.    
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Google I/O 2013 has created a lot of buzz and of course, a lot of words. Here is my pick of some of the best pieces about Google’s annual developer conference and the news coming out from there, and here’s a link to some of our best pieces from the week. Google please be a benevolent internet overlord. Dan Gillmor writes for The Guardian and shows why he continues to be one of the clearest thinkers when it comes to the internet, companies and us, the people. Mark Sigal’s 6 key takeaways from the Google I/O keynote. A really good roundup. Everything Google is trying to kill. Classic Gizmodo piece where in they tell us that Adobe, Spotify, Skype, Pandora, PayPal, Textbooks, Flickr and Siri are some of things Google is trying to put out of business. Tyler Hayes thinks Google’s Play music service is going to have a tougher time in the market than most people think. At Google conference, cameras in the bathroom. Okay, bullet dodged. Great piece on how Google got its unified messaging act together and built the new Hangouts. Welcome to the Google Island. Only Mat Honan can do this. Even Google’s own developers won’t be seen wearing Google glasses. Or so says FastCompany. The Design that conquered Google. New Yorker picks up on the design plus data symbiosis I have been writing about and focuses on Google’s liberal use of the cards metaphor. All the mashed potatoes. John Gruber in full effect.     
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WebRTC, the new technology that enables plugin-free voice and video chat within the browser, should be available on more than one billion unique endpoints (think: desktop browsers and mobile devices) “within a week,” according to Google’s WebRTC engineering lead Justin Uberti, who gave an update on WebRTC’s progress at Google I/O Friday. WebRTC is going to reach that milestone thanks in part to Firefox 22, which was just released this week. The new version of Firefox comes with WebRTC enabled in its beta version, which should add a large number of users to the addressable market for WebRTC developers. Uberti also said that WebRTC is going to come to iOS devices soon: Apple hasn’t joined the efforts to implement and standardize WebRTC yet, but Google wants to nonetheless give developers a way to address users on iPads and iPhones through the release of a native toolkit. Image courtesy of Flickr user  Tsahi Levent-Levi. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.The 2013 task management tools marketHow consumer media will change in 2013Social 2013: The enterprise strikes back    
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Bitcoin is a cyber-currency of growing interest to speculators, the media and — most recently — the U.S. government. Many stories about Bitcoin, which is mined by computers and circulates without a central bank, contain sinister or science-fiction elements that make it hard to tell if the currency is for real or just an overblown gimmick. On Thursday evening, GigaOM hosted a meetup in San Jose where six Bitcoin authorities, including investors and engineers, shared their views on how the currency is evolving and who is using it. Here are three of the larger ideas to emerge from the discussion (if you want to catch up on the basics of Bitcoin, see “Yes, you should care about Bitcoin and here’s why“): Bitcoin can help ordinary people Wences Casares, a venture capitalist and CEO of Lemon Wallet, grew up in Argentina, where he experienced first hand what happens when a government mismanages its currency: inflation, capital controls and the destruction of family savings. Today, the same thing is happening all over again as desperate Argentines try to convert their pesos into a store of value that the government can’t seize or destroy. One option is Bitcoin. Casares explained how some people in his country are using “old Android phones” to acquire and exchange Bitcoins at a time when the government is clamping down on the trade in U.S. dollars. More remarkably, Casares noted, is that many of the people using Bitcoin don’t know much about technology — but they do know, through hard experience, about currencies and can recognize alternate sources of money. Other speakers and audience members also described the potential of cyber-currencies like Bitcoin to ameliorate the broken or compromised banking infrastructure in places like Latin America and Asia. In the larger picture, Bitcoin could be just one part of an impending revolution in the world’s money transfer networks. Specifically, new currencies and transfer platforms may provide a way for people, including those who rely on remittances, to escape the high transfer fees imposed by credit card and wire companies — and simply exchange money directly with one another around the world at almost no cost. Bitcoin is complicated — and is going to stay that way for a while Mike Hearn is a young engineer from Google who uses his 20 percent time to work on developing Bitcoin software. At the meetup, he chatted about infrastructure and security with Bennett Hoffman, a former Microsoft employee who is building a new Bitcoin exchange called Buttercoin. The two engineers agreed that the system that creates Bitcoins is secure and stable, even if parts of the surrounding ecosystem (exchanges, wallets and so on) are not. Hearn said Bitcoin is not ready for “your grandma” just yet — and that is, in part, a choice by those who are building and fine-tuning the Bitcoin open source code bequeathed by the currency’s pseudonymous creator, Satoshi Nakaomot. Hearn’s point is that he and others are focused now on improving the processing and ledger system that facilitates Bitcoin transactions; they are ensuring that it can scale in the same way that the Visa payment network is able to handle sales spikes. This focus on “the guts” of Bitcoin means that, for now, the software will remain complicated and will be a challenge to those who aspire to build consumer-facing interfaces on top of it. This won’t, however, prevent Bitcoin from gaining traction in the real world. David Barrett, CEO of Expensify, explained earlier in the evening that his firm now allows companies to reimburse their employees’ expense reports in Bitcoin. According to Barrett, the Bitcoin option is not a gimmick but rather a cheap and practical solution for companies to pay employees across borders. Bitcoin will be regulated — and that’s a good thing Bitcoin watchers gasped this weekend when the Department of Homeland Security executed a seizure warrant against the owner of Mt. Gox, the Japanese exchange where many people trade the currency. The law enforcement action, which comes after U.S. securities regulators said they are looking at Bitcoin, posed a new liquidity threat to the currency and also reinforced its outlaw reputation. Surprisingly, the Bitcoin backers at the event appeared to welcome the government’s growing involvement. According to Micky Malka of Ribbit Capital, which is investing in Bitcoin ventures, regulation is not just inevitable — but desirable. “I’m already regulated by eight central banks,” said Malka, explaining that regulation is simply part of any mature financial system and that, in the case of Bitcoin, it is likely to introduce a new level of stability. Malka and others, including the Bitcoin Foundation, said they are less interested in libertarian fantasies than they are in establishing a rational and informed regulatory structure around the currency. Malka added that his biggest fear for Bitcoin is not the U.S. government but shenanigans by speculators. The bottom line The San Jose event felt at times like a cross between an investor seminar and a church revival, with the packed room sometimes applauding wildly at the blue skies of Bitcoin. But that doesn’t mean there’s not something very real going on here — a lot of very smart and credible people are putting a lot of time and money on the line in an effort to redefine the world’s financial infrastructure. According to Wences Caseres, the moment feels like 1992, when the world was on the cusp of discovering the world wide web but hadn’t yet found the right user interface. He might be right. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Examining the rise of crowd labor platforms in 2012The evolution of the virtual goods marketThe 2013 task management tools market    
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Games for the Weekend is a weekly feature aimed at helping you avoid doing something constructive with your downtime. Each Friday we’ll be recommending a game for Mac, iPhone or iPad that we think is awesome. Here is one cool enough to keep you busy during this weekend. Skylanders Cloud Patrol ($1.99, Universal) is a carnival-style shooting game where you tap to shoot at your target to win coins. The targets you are shooting at are mischievous trolls that have broken out of prison. In this game you play one of a number of different Skylanders. As a Skylander you are responsible for hunting down and eliminating the escaped trolls. To shoot a troll, or anything else for that matter, you simply tap on the screen at the target you want to hit. You can also swipe your finger up, down, across and in a variety of pattern to lock on to a series of targets in quick succession. When shooting in such a manner, the game has the same interactive feel as Fruit Ninja. And like Fruit Ninja there are targets on the screen, in this case mines, that you must avoid shooting at all costs. If you shoot and hit a mine, it will explode and end the game. As you progress through the game you are presented with a never-ending series of targets at which to aim. Each collection of targets are laid out like individual levels. After you successfully hit all of the targets on a given level, you will be flown to the next level in the cloud and presented with a new collection of targets. These targets can be barrels, boxes, balloons, presents, sheep (yes, sheep) and of course trolls. Things do get progressively difficult as the targets you are aiming to hit do not stay in one place. The trolls will hide behind shields, duck under rocks and even fly around the screen using propeller caps. It really does resemble a carnival-style shooting game. Some of the trolls are armed with weapons that they will use to shoot at you. You must shoot down the projectiles aimed at you before they get too close and kill your Skylander. Swirling around the screen intermixed with the trolls are the mines.  The mines always seem to change their pattern and place themselves right in front of a troll as you are tapping on the screen to shoot. There are also magical power-ups, crates packed with explosives that will kill all visible trolls on the screen, and golden coins that you can tap on to collect. When you do finally get overwhelmed and either shoot a mine or get shot by a troll, the game will end. Your score will be tallied, coins will be counted and you will be awarded gems for each of the posted achievements you have accomplished. The coins and gems collected can be used to buy magic items as well as different Skylanders.  The magic items can be used while playing the game to give you an advantage over the trolls you are shooting.  However, switching out your Skylander for a more powerful Skylander with special abilities can really make a difference in how well you perform.  Between each level, there are in-app purchases where you can buy more gems.  The gems can be traded for gold coins.  This can certainly help you power-up at a faster rate by enabling you to achieve your goals faster. What really sets the game apart however is that you can also make out-of-app purchases.  This is actually the main reason that the entire Skylander series of games exists.  By purchasing real toy models of the Skylanders at your local toy or hobby store, you can use the web activation code that comes with the toy model to unlock its corresponding Skylander character within the game itself.  Through earning gems and coins in the game, buying gems and coins through iTunes in-app purchase, or buying toy models at a retail store, you can grow your Skylander army. Rather than exclusively use Apple’s GameCenter, Skylanders also utilizes Activision’s online gamers community, Activate. With Activate you can save game progress and challenge your Activate friends to various Showdowns.  These Showdowns are like goals, and if you win the Showdown you will be awarded with gems and coins.  The interaction between the game and Activate is smooth and reliable.  This weekend is as good a time as any to Activate an Activision online gaming account and start hunting trolls. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.How do developers ride the Siri wave?Connectivity means making the machine disappearAccess vs. ownership: Why UltraViolet has already lost    
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Over the past couple of months, massive open online course (MOOC) providers have been the focus of dissension on some college campuses. But now online learning company 2U is getting some pushback of its own. Last fall, the company, which has partnered with several leading universities for online masters degree programs that feature small classes and live instruction, announced a new for-credit online program for undergraduates. But three of the 10 schools that had originally committed to the program have since backed out. Last month, Duke revealed that it was withdrawing from the program after a faculty vote against the program. And, according to Inside Higher Ed, Vanderbilt and University of Rochester have also pulled out as of Friday, with Wake Forest sitting on the fence. “Each school has their own process for evaluating these opportunities,” 2U’s SVP of communications Chance Patterson said, adding that the company is moving ahead with its plans to launch the program this fall with the remaining schools, including Northwestern, Emory and Brandeis. 2U also said that Boston College has since joined the consortium and that it’s in talks with 20 other schools. At Duke, faculty concerns over the lack of administrator transparency related to the 2U deal, as well as unease with awarding school credit to students not admitted to the college, apparently led to the withdrawal. Other issues led Vanderbilt and University of Rochester to back away from the 2U consortium. While several schools work with different online learning companies, University of Rochester reportedly chose Coursera over 2U because of the MOOC provider’s ability to reach a larger audience. Vanderbilt raised the issue of cost; while efforts like the MOOCs try to provide educational experiences at a lower price, 2U’s program costs the same as an on-campus for-credit program. Vanderbilt, as well as Duke, still maintain partnerships with Coursera for non-credit-granting courses. The decisions to back away from 2U come after faculty resistance to online learning programs at other institutions. Earlier this month, San Jose State University professors refused to teach an edX course on justice developed by a Harvard University professor, arguing that MOOCs come at “great peril” to the country’s university system.  And in April, faculty at Amherst College voted to reject a partnership with edX, citing similar concerns about the effects of MOOCs on U.S. universities. 2U’s model, which focuses on small class sizes, live instruction and real teacher-student interaction, exists in stark contrast to the mega-sized virtual classrooms created by the MOOC providers. But it’s still bringing a new and different instructional approach to slow-moving academia. Even though one could argue that 2U’s flavor of online education isn’t as disruptive as MOOCs — like traditional college courses, it promotes teacher-student relationships, live classes and paid courses — it’s still causing some faculty to wonder about its long-term impact on their institutions and employment prospects. For example, the New York Times reported that some Duke professors were concerned that it might eventually cause the university to offer fewer courses and hire fewer professors. Ultimately, these on-campus debates emphasize that transitioning to online learning isn’t a one-size-fits-all endeavor. Faculty and administrators raising concerns aren’t rejecting online learning wholesale, they’re trying to determine the approaches that work best for their students, missions and economic needs. As MOOC providers and other online learning companies make bigger headway, we’ll inevitably see more of these tussles — and that’s not necessarily a bad thing. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.GigaOM Research highs and lows from CES 2013How HR can make the case for workforce analyticsThe 2013 task management tools market    
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Don’t look now but it looks like Yahoo’s mobile apps push is bearing fruit, at least according to new data from Onavo. Case in point: Yahoo Weather, which rolled out recently, already has what Onavo CEO Guy Rosen calls an “unprecedented” 3 percent market share among U.S. iPhone owners. That’s about 1.5 million users total which makes it the 91st most popular iPhone app three weeks after release, according to Onavo Insights data. That’s very good for a new app, Rosen said in an interview. Other Yahoo mobile apps including Yahoo Messenger and the Yahoo app are also doing well. “In general, what we found is that although Yahoo has been quiet on mobile, when we look at the top apps, we see quite a few up there. They have a decent footprint.” How does Onavo get to these numbers? It uses data gleaned from its free iPhone (and now Android) apps including Onavo Extend, which compresses data flowing into and out of your phone; Onavo Counts, which watches how much time you actually spend using a given app; and Onavo Protect, which scans traffic flowing into your phone for malware. Then it aggregates that data (minus the personally identifiable bits) and runs statistics to suss out usage patterns. That data forms the core of reports that the company then sells to app developers. This data is far more useful to app makers than app store download figures because it shows actual engagement. If your app is the mobile equivalent of shelfware, it’s helpful to know that. Rosen said “millions” of people use Onavo’s iPhone apps but would not specify further. “We use a panel methodology with our user base as the sample and apply statistical methodologies to make sure it’s valid,” he said in an interview. The current app stats do not yet factor in Onavo’s Android users, although they will be incorporated in time. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.A near-term outlook for big dataDissecting the data: 5 issues for our digital futureThe future of mobile: a segment analysis by GigaOM Pro    
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In the next few months, 420,000 U.S. Cellular customers in the Midwest will find themselves without a mobile network. Sprint on Friday closed a $480 million deal with U.S. Cellular that will hand all of the latter’s spectrum in Chicago, St. Louis and the surrounding regions into Sprint’s waiting arms. This is no mere transfer of network title, though. Sprint plans to shut down U.S. Cellular’s network completely some time in those two metropolitan regions in the next several months (Champagne, Ill., and South Bend, Ind., will also be affected). And despite the fact that U.S. Cellular’s systems uses the same CDMA technology in the same PCS frequencies, Sprint isn’t supporting its existing handsets. All of those customers must either start over with new devices and new service plans on the Sprint network or go find a new mobile operator entirely. Sprint Regional VP for the Midwest Kevin Gleason told GigaOM that Sprint planned to make the transition as easy as possible for U.S. Cellular’s customers by offering them plenty of incentive to move to Sprint. “I believe our recapture rate will be high,” Gleason said. “We’ve already started communicating with them and several of them have already made the switch.” Sprint has sent out an initial batch of letters notifying them about the transaction but Gleason said Sprint will soon follow up, detailing the timing of the network shutdown and the discount offers Sprint is making to draw those customers under the Sprint umbrella. While Gleason wouldn’t give any specific details on the exact amount of the discounts, he said they would take many forms: device discounts over Sprint’s usual subsidies, trade-in fees for older phones, porting credits for making the switch and activation fee waivers. Many customers will be able to get new phones and comparable service plans without having to pay a dime, he said. Many will also be able to upgrade to fancier devices such as the iPhone 5 or Samsung Galaxy S 4 for a much lower than price than other customers would pay, Gleason said. He added that switching customers would also have a great deal of flexibility in plan choices, since Sprint is extending the discount offers to its Boost Mobile and Virgin Mobile prepaid brands as well. In general, Sprint and U.S. Cellular’s contract plans are comparable, and in the case of its unlimited data plans, Sprint is actually cheaper. But depending on the circumstances, not every customer will be getting an equitable deal. For instance if you happen to have just bought a new high-end smartphone or tablet, Sprint incentive discounts won’t cover the full cost of replacing it. What’s worse is that brand new smartphone essentially become useless in a few months when the Chicago and St. Louis networks go dead (though it would work on U.S. Cellular’s other networks). Some customers may also balk at the idea of signing new two-year contracts if they want to take full advantage of the discount offers. Gleason acknowledged that some customers will feel like they’re getting a raw deal, but he expects those cases will be kept to minimum. He pointed out that 60 percent of U.S. Cellular customers in affected cities have let their contracts lapse and the large majority of them use feature phones. Those subscribers are ripe for an upgrade, he said. That’s one of the main reasons why U.S. Cellular opted for a wholesale replacement of U.S. Cellular’s networks and devices, rather than a gradual phase out like Sprint is doing with its Nextel iDEN network, Gleason said. So many of those U.S. Cellular devices are old or obsolete that it decided to start fresh with phones optimized for Sprint’s new Network Vision architecture, which boasts the most up-to-date CDMA and LTE technologies. We’ll know more details about the sunset timeline and the specific discounts in the next couple of weeks. And if you’re a Chicagoan, you’re probably wondering what will happen to the name of U.S. Cellular Field, the home of the White Sox, now that the carrier is leaving the city. Well, it won’t become Sprint Field. Gleason said U.S. Cellular is keeping the naming the rights. U.S. Cellular Field hoto courtesy of Shutterstock user Alan Mars Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.New solutions for the evolving mobile networkCES 2012: a recap and analysis12 tech leaders’ resolutions for 2012    
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Maybe being honest doesn’t pay, after all: Switzerland-based file hoster RapidShare has laid off 45 of its 60 employees to cut down on costs as it tries to reinvent itself and focus more on B2B cloud storage services. The cuts were first reported by Swiss daily 20min, who was told by the company’s new CEO Kurt Sidler that RapidShare definitely won’t shut down. “Unfortunately, we have to part with a number of employees,” Sidler told the paper, adding: “But RapidShare will continue to operate, and we have concrete plans for our future.” That future likely won’t look at all like RapidShare’s past: The company used to run the world’s most popular one-click file hoster, and was frequented by millions of file sharers looking for safer alternatives when music labels and others started to go after P2P users. However, Rapidshare quickly found itself in court, and fought long legal battles with rights holders in Germany and elsewhere. The company tried to appease rights holders by putting restrictions on some aspects of its service; RapidShare was one of the first companies to get rid of its rewards program, which would compensate uploaders with especially popular files. It also pressured users to get registered accounts, and finally introduced bandwidth limits in late 2012, restricting users to 30 GB of bandwidth per day – not enough for people who were using the service to offer movies and other copyrighted files for download. Rapidshare had hoped that all of these measures would get the company some love from rights holders, as it was looking to offer video games and eventually also movies through a paid download store. The idea was to redirect downloaders looking for free, unlicensed copies, and swerve up legitimate content instead. However, Holllywood apparently didn’t play ball, and RapidShare nixed its plan for paid downloads at the end of 2011. The company is now looking to get a stronger foothold in the B2B cloud storage market, and sell personal file storage and backup solutions to consumers. However, the mass layoffs weren’t the first sign that these plans may not be going as expected: Sidler, who joined the company just two weeks ago, is RapidShare’s fourth CEO since 2010. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Will cloud computing push the BRIC market to the front?Google and the Ghost of Silicon Valley PastA near-term outlook for big data    
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Google went and pre-empted Apple’s long-rumored iRadio streaming music service with a subscription music service of its own at this week’s Google I/O developer conference. Apple’s own developer event, WWDC, starts June 10, but the word is that its music service may not be ready to go by then. The Verge says Apple is still “bogged down in licensing talks” with music publishers. Two of the big ones are still holding out, Sony/ATV and BMG, according to the Verge’s sources. That’s partly because what Apple is trying to do is not the same as Google Play Music All Access. Google’s service is a standard subscription service, like Spotify, and it will cost users $10 per month. It’s also not clear what the music catalog will look like for that service because Google has not yet announced which publishers have signed up. iRadio is reportedly more complicated because of what Apple is trying to build and how it likes to do business. iRadio won’t be a straight-up web radio service; there will also be some on-demand aspects to it. And Apple also isn’t willing to pay music publishers an advance for access to their catalogs. Instead, Apple has agreed to give them a share of ad revenue, per-play fees and a guaranteed minimum payment, according to the Verge. Apple already makes billions from its current content service, iTunes. It’s not essential that Apple have its own streaming music subscription service as answer to Google in a few weeks. But the company does need to acknowledge that times and habits have changed when it comes to music ownership. The developers conference seems a perfect place to debut it, but a fall event later this year when new hardware is set to be announced would be fine too; three more months doesn’t make that big of a difference at this point. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Analyzing the wearable computing marketMonetizing music in the post-scarcity ageForecast: the future of the digital music industry    
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The original idea behind soap operas was that daily episodes would keep viewers hooked and advertisers happy. But few people have time to devote to mid-day TV any more, and as TV viewing shifts online, the model is changing. It’s been just two and a half weeks weeks since popular soap operas One Life to Live and All My Children were reborn as online-only shows — but production company Prospect Park has already decided to cut back on the number of new episodes released online each week. The change in schedule, the company claims, is due to the fact that viewers are “binge-watching” instead of watching one episode a day, and this makes it too hard for them to keep up. Starting on April 29, Prospect Park — which licensed the soaps from ABC — ran new, 30-minute episodes of each show every Monday through Thursday, followed by a recap on Friday. The shows are available on Hulu and Hulu Plus, or can be downloaded from iTunes. They’ve received “millions” of views, Prospect Park cofounders Rich Frank and Jeff Kwatinetz wrote in a letter to fans (PDF) this week, and have “consistently been in the top ten shows viewed on Hulu.” But most viewers aren’t watching these shows the way they traditionally watched soap operas on TV. Instead, as with other TV shows online, “our shows are primarily consumed on different days than when they originally air,” Frank and Kwatinetz wrote: “Primarily, fans have been binge viewing or watching on demand, and as a result, we feel we have been expecting our audience to dedicate what has turned out to be an excessive amount of time to viewing these shows. (As an example, for the substantial audience only watching on the weekends, we are currently asking them to watch five hours of programming to keep pace with our release schedule).” In addition, viewers aren’t adhering to traditional soap-watching habits. When the shows were on ABC, “viewers watched only 2-3 episodes on average a week and picked up with whichever day’s episode it was.” By contrast, online viewers “seem to primarily start with the first episode and then continue forward episode by episode…yet starting from the beginning with the amount of episodes we are releasing is asking too much for viewers who need to catch up.” Prospect Park is also concerned by the fact that, when the shows aired on ABC, viewers often watched both — but online things are different: “The majority of our viewers are watching one show or the other, not both, and they aren’t viewing the shows when they did before. Part of the reason for choosing between the shows may be that the largest viewing takes place either between 12 PM and 1 PM (when people generally can only fit one episode during lunch time) or between 5 PM and 7 PM (when the vast majority of competing shows are a half hour long). We are finding that asking most people to regularly watch more than a half hour per day online seems to be too much.” Overall, Frank and Kwatinetz conclude that “When it comes to online viewing, most of us are just trying to find time to watch series comprised of 13 to 22 episodes a season — so asking viewers to assign time for over 100 episodes per show is a daunting task.” So starting Monday, May 20, the schedules will change. Each soap will now air just two new episodes a week: New episodes of All My Children will air online on Mondays and Wednesdays, and new episodes of One Life to Live will air on Tuesdays and Thursdays, with a recap episode on Friday. “Because Hulu agrees with our findings,” the founders wrote, “for the meantime they will keep all of our episodes on Hulu.com for free to give viewers the opportunity to find us and catch up.” Frank and Kwatinetz acknowledge that “our most dedicated viewers will be upset,” but “we need to devise a model that works for all viewers and follows how they want, and are actually watching, online” in order to ensure that the shows “not meet the fate they experienced previously.” The Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.Who and what to watch in the new era of the living roomOTT technologies and strategies for broadcastersWhat the shift to the cloud means for the future EPG    
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Millions of people access Twitter every month, and the sheer volume of tweets flowing through the company’s platform is remarkable. Different companies have tried to harness the value of those tweets and derive information from the 140 character blips. But it would seem that making suggestions to users about the best book to read or movie to watch based on tweets isn’t an easy challenge. Parakweet is a company that’s working to use natural language processing to cull through your tweets and make smart, targeted suggestions based on the data. On Friday, the company plans to announce the launch of two products. One is Bookvi.be, a consumer-oriented book recommendation engine, and TrendFinder For Movies, which is a social media dashboard primarily for entertainment companies to monitor conversations around movies. The latter is a paid product that provides the company with revenue, and the former is free for consumers. “It’s a very hard problem we’ve tackled, which is accurately identifying sentiments,” CEO Ramesh Haridas said. “With 400 million tweets a day, there are 700,000 a day discussing movies, and if you tried text-matching techniques you’d come back with 40 million results. Many movies and books have very common titles, so you’d just drown in data.” Both products use natural language processing to figure out how common a title is on Twitter, but also how a consumer is tweeting about a particular product, and they make recommendations based on those tweets. For instance, if I tweeted that a particular book is terrible and no one should ever read it, it would look ridiculous for a book recommendation engine to suggest that book to people. So Bookvi.be is structured to recognize the words I’m using in my tweet and know not to recommend that book. Users can choose to have a weekly email send to them with book suggestions, and they can type in their Twitter username to get book suggestions based on the people they follow. “The bar on accuracy is very high,” Haridas said. “Especially if it’s sent via email, the precision needs to be intact.” I’ve looked at a good number of social recommendation tools, and this one definitely stood out. For one, it was incredibly accurate — all the books it suggested were books I would actually read. But most importantly, it didn’t require me to create a new social network, or depend on friends for reviews, so you could get a lot of value from it right away. This is the obvious benefit of using someone else’s social graph, but Twitter seems perfectly suited to making content recommendations for things like books. Because unlike my Facebook friends, the people I follow on Twitter tend to accurately reflect my intellectual interests. Of course, there are the obvious potential pitfalls of building a product around someone else’s platform, although Haridas said they support Facebook and are adding other platforms. But there’s a good deal of money to be made in accurately processing and understanding the words people are tweeting, as evidenced by Twitter’s acquisition of Lucky Sort this week, a similar company that also tries to figure out what people are talking about on social media.  As I’ve written before, as Twitter ramps up its advertising products it’s more important than ever for the company to be able to provide brands with more accurate ad targeting which hinges on the words people are tweeting and searching. Related research and analysis from GigaOM Pro:Subscriber content. Sign up for a free trial.How consumer media will change in 2013Examining the rise of crowd labor platforms in 2012The state of cross-platform media measurement    
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