Google wants newsmakers to write the news

Although Mike Arrington seems less than impressed with it, I think Google’s plan to allow comments on Google News stories — but only from people involved in a news event — is actually a pretty interesting idea. There’s no question that it’s going to be a lot of effort, and that it may in fact fail as a result, but I think the impulse behind it (as described on the Google blog) is a valuable one.

In effect, this is a step towards “crowdsourcing” of the news, but in a very focused way. Instead of allowing anyone to comment on a news event or story, Google’s plan is to only allow comments from those who are a part of the story (although how the company plans to verify that remains to be seen). I think — as Tony Hung at Deep Jive Interests does — that this has the potential to expand the journalistic process.

For many newspapers and other news organizations, a story has a limited lifespan, unless it is one of a small number of big headliners that get followed up day after day, or month after month. Whoever responds in time to get their comments included in the story makes it into print, and those that don’t are rarely heard from.

I found it interesting that in the Wall Street Journal story on the new feature, a professor of pediatrics who was asked by Google to comment on a story in which he was quoted said this:

“I’ll do a 15- to 20-minute interview, and two sentences will appear about what I’ve said… So the Google feature is really a chance to flesh out those two sentences and to include some more of what I ordinarily talk about in a 15- to 20-minute interview.”

Google’s proposal has the potential to allow unheard-from participants to make themselves heard, and thus make news stories more complete — as pointed out at Poynter Online and by my mesh friend Mike Masnick at Techdirt — and I think that would be a great idea, at least in principle. In any case, it will be interesting to see how it turns out.

Update:

As Mike notes at TechCrunch (courtesy of Gabe “Techmeme” Rivera), the terms of service at Google News prevent anyone from crawling the site and aggregating any of its content — but this doesn’t seem very kosher if Google is now effectively creating (or expanding on) the news. And Danny Sullivan has some responses from Google to questions about the new feature.

Dabble with project management in Facebook

It may sound like a new way to torment your friends using Facebook, but a widget that Vancouver-based DabbleDB just launched also strikes me as an interesting way of managing different tasks or parts of a project among a group of Facebook users. Not only can you create tasks and to-do lists for yourself, but you can create them for others as well — and then bug them until they’ve finished them. Here’s a link to the widget, and my friend Paul Kedrosky (whose venture firm has an investment in Dabble) has more here.

Has the NYT seen the light on the pay wall?

According to a report in the New York Post, the New York Times has decided to drop the Times Select pay wall that keeps most of its opinion and editorial content, including its popular op-ed columnists, locked up for paying customers only. The Post says that publisher Arthur Sulzberger Jr. has made the decision but the paper is trying to resolve various software issues before announcing it.

The story also notes that the Times has seen its subscription base for Times Select flatten (the Post report says the number dipped in June to 221,000 from 224,000 in April, but the Times has said those figures are wrong). As Henry Blodget points out at Silicon Alley Insider, it has been obvious for some time that Times Select was not growing and would never become a substantial part of the newspaper company’s business.

One could argue that getting people to pay $11-million is better than nothing, but $11 million in revenue for an operation the size of the NYT is a rounding error. It hardly seems worth it — especially when columnists like Maureen Dowd and Thomas Friedman (love them or hate them) are among the best draws the paper has. To keep them locked up for paying customers only instead of maximizing their traffic-drawing abilities seems increasingly absurd.

I hope the Post report is for real. Scott Karp has a more in-depth look at why Times Select makes no sense in an online media world. In other newspaper-related news, a new report says that online advertising revenue is expected to eclipse newspaper advertising revenue by 2011.

Fake Steve and the power of blogs

By now, anyone who isn’t living in a cave probably knows that the blogger behind Fake Steve Jobs has been exposed as Forbes writer Daniel Lyons. If you need to find out more, you can read one of the eight thousand posts about it on Techmeme. I’m not all that interested in finding out FSJ’s secret identity — in fact, I was kind of hoping he wouldn’t be found out.

What I find really fascinating, like Anil Dash of SixApart and my friend Joey deVilla from Global Nerdy, is that Daniel Lyons is also the guy who wrote the Forbes magazine screed about blogs not so long ago. Does that make him a hypocrite? Perhaps — although I would argue that, like many magazine writers (or newspaper writers for that matter) Lyons likely took a stance for the article that he knew would be controversial, as a rhetorical device, and may or may not have actually felt that way personally.

In any case, that clearly didn’t stop him from seeing the power of having a blog. As Anil puts it: “The benefits of blogging for one’s career or business are so profound that they were even able to persuade a dedicated detractor.” And Scott Karp at Publishing 2.0 notes that Lyons clearly felt compelled to do something more creative than Forbes allowed him to do, and as a result he is likely to benefit from it — at Forbes’ expense.

Money = a way of keeping score

When I read the New York Times piece about the poor multi-millionaires lamenting their poverty — while living in million-dollar homes and making hundreds of times more than the average person — I had many of the same thoughts as my friends Mark Evans, Jason at Webomatica and Jeremy Toeman at Live Digitally. In other words, a combination of disbelief, irritation and more than a whiff of outright disgust.

At the same time though, one of the things that the piece brought home to me was that beyond a certain point — in most cases, once people get past having to work to literally put food on the table or a roof over their family’s heads — money doesn’t really matter in the same sense any more.

I’ve seen it happen to stockbrokers and bond traders and men who have made millions in the oil patch: many of them would continue to work just as hard if they were being paid in poker chips or jelly beans, provided everyone else in their social circle was also being paid in poker chips or jelly beans.

At that point, what matters is who you see as your peers, why you are doing what you’re doing, and what you see as important in life. And in many cases, the drive that makes people work so hard can’t just be turned off with the flick of a switch once they make a certain amount of money. In many ways, the money is irrelevant. I wish I knew what that felt like 🙂

Freshbooks helps Amazon take on PayPal

I know there’s been a lot of Canadian flag-waving around here, what with my recent posts on Treehugger, Club Penguin and Webkinz, but heck, if I don’t wave it, then who will? In any case, there’s some news today about another Canadian Web 2.0 success story, namely Freshbooks — which (full disclosure) is run by my friend and fellow mesh organizer Michael McDerment.

As discussed in a post over at the Amazon Web Services blog, Freshbooks is one of a handful of partners that has been testing a new service called Amazon Flexible Payment Service. Mike’s partner Sunir explains more about the details of the testing they’ve been doing in a post at the Freshbooks blog, and Amazon has more details on FPS here, and Phil Burns says he is already working on integrating it with Facebook.

cash.jpgAmazon’s payment service (which Mike Arrington broke the news of here) looks to me like something that has the potential to become a real competitor to PayPal, a service that has many great features but has also irritated many users by being, well… inflexible. And at least at first glance, the pricing for FPS looks fairly competitive with PayPal and Google Checkout. Even Uncov seems to like it 🙂 FPS joins a stable of impressive services Amazon has launched over the past year or so, including its S3 storage business and the EC2 or “elastic computing in the cloud” business — which companies can effectively use as a virtual server farm.

As the AWS blog describes it:

In much the same way that S3 and EC2 allow developers to forget about leasing space in data centers, buying servers and negotiating for bandwidth, FPS shields developers from many of the messy and complex issues which arise when dealing with money.

There are no minimum fees and no startup charges, and any transaction fees are obvious and transparent to the user, Amazon says. As James Robertson notes on his blog, Google gets a lot of attention, but Amazon continues to roll out services that are inexpensive, useful and potentially even revolutionary with very little fanfare. Congrats to Mike and his team for getting in on the ground floor of what could be another winner.

Club Penguin got bought — is Webkinz next?

It’s rare enough to have an industry-leading Web service that is based in Canada, let alone two of the top 10. But if you define “online virtual worlds aimed at children” as an industry, then that’s what we’ve got with Club Penguin and Webkinz. The former just got acquired by Disney for an eye-popping $700-million, after less than two years in business.

In what is sure to become a legendary Canadian example of bootstrapping a company, the popular social networking/game site was created by three friends in Kelowna, B.C. as a wholesome place for their young children to play and was completely self-funded by credit cards, angel investors and friends (much to the chagrin of several VCs).

snipshot_e4cpbnum66l.jpgWebkinz is a little different from Club Penguin. While the latter is strictly an online phenomenon, Webkinz — which also got its start about two years ago, but in Toronto — is a clever blend of online virtual world and offline toy. The company behind the site, a third-generation toy company called Ganz, came up with the idea of creating a toy that had a virtual doppelganger on a social-networking style website. Webkinz plush animals (which cost $15 each) come with a code that gives their owner access to the Webkinz world. They can then design a “house” for their avatar, and buy toys or furniture with their virtual money, or Kinz Cash. They also have to take care of their virtual pet, and players can chat — but only using stock phrases generated by the site — as well as play games and win Kinz Cash.

Club Penguin and Webkinz are alike in one thing, apart from their appeal for young children and “tweens”: although Ganz (a private company) doesn’t release membership figures, it and Club Penguin appear to have roughly the same number of subscribers — about 4 million or so, according to several estimates. Does that mean Webkinz might be worth $700-million too? After all, Club Penguin reportedly talked to several other companies about an acquisition, including Sony, which was ready to offer $500-million, as well as News Corp. (although Ganz itself has not confirmed any previous talks).

The Webkinz business model is slightly different, however. While both sites have a free section in which kids can play to a limited extent, in order to do anything more elaborate they have to become members — which in Club Penguin’s case costs $5.95 a month or $60 for a year. Webkinz owners can get access to everything by buying a single toy, which only costs $15, although many owners (such as the woman we wrote about in this story) have half a dozen Webkinz or more. But while Club Penguin’s revenues may be higher, Ganz has likely made about $60-million already on its virtual venture.

Whether that is appealing enough for a takeover bid is difficult to say, and it’s also unclear whether Ganz would be willing to sell Webkinz, which is likely a blockbuster cash generator for the company. One (possibly hopeful) venture capitalist blogged recently that he could see a spin-off, acquisition or even an IPO in the company’s future, but Ganz spokesman Susan McVeigh said late Thursday that the toymaker likely wouldn’t be interested. “Ganz is a privately-held family business and is very proud of that,” she said.

Google wants you to help create maps

snipshot_e4rwknta5mt.jpgAccording to a recent speech by Google Earth’s chief technology officer Michael Jones — which Brady Forrest describes at the O’Reilly blog — the site is using “crowdsourcing” techniques to generate detailed maps of India — using a package that the company has put together with a GPS transmitter and some software that it hasn’t publicly released yet. There’s a transcription of the talk and some more details at Dan Karran’s blog, and the Google Earth blog notes that this approach is very similar to the Open Street Map project — except of course that OSM is, well… open. More thoughts at FortiusOne. We all work for Google in one way or another, don’t we? Whether we know it or not 🙂

Creating a top blog: So easy a kid can do it

Came across a great story at CNET, in a post that SEO (search engine optimization) blogger Stephen Spencer wrote about his 16-year-old daughter Chloe and her website. As she told a recent conference, Chloe loved Neopets so much that she wanted to set up a website about them, so with her dad’s help she looked up some popular keywords and built a blog on WordPress. He says she is now making close to $1,000 a month.

[youtube https://www.youtube.com/watch?v=djjl_4jeznw&w=425&h=350]

 

Next: A Simpson’s medical textbook

xin_3120704301027437122523.jpgI just love this story: an article on multiple sclerosis at Xinhua, the Chinese news site, used a “file photo” of an X-ray that happens to be a still image from The Simpson’s — namely, an X-ray of Homer’s brain. An editorial comment about MS patients? Unlikely. Tony Hung wonders whether it’s a cultural thing, and Joey deVilla at Global Nerdy thinks it might have something to do with the kind of animation used in Asian instruction manuals. I think the explanation is pretty simple: the image is number three when you do a Google image search for the term “X-ray.”

Nice guys do finish first sometimes

snipshot_e41bgtfca5ut.jpgThree hard-working, family-oriented guys from the picturesque mountain town of Kelowna, B.C. A website that is filled with nothing but wholesome, kid-friendly entertainment featuring that most kid-friendly of animals, the penguin — and not a single advertisement, pop-up window or spyware-installing toolbar. The only way the Club Penguin story could be any more Canadian is if the site featured Mounties in it. The company even donates 10 per cent of its profits to charities involving underprivileged youth. If Mother Theresa had kids, this is the website they would play on. The site is so clean it almost squeaks. Congratulations to the Club Penguin team — nice guys (and Canadians) do finish first sometimes.

Jay Rosen’s thoughts on NowPublic

Update (Aug. 3):

Leonard Brody of NowPublic posted a response to Jay’s note on Facebook saying: “Jay, thanks so much for this…great analysis. We really would love to have you as an advisor to the company. Interested?”

Original post:

Given that New York University professor Jay Rosen’s NewAssignment.net is at the forefront of “citizen journalism” (or “crowdsourced” journalism or “networked” journalism, or whatever you choose to call it) it’s probably not surprising that he has some thoughts on the recent announcement by Vancouver-based NowPublic that it has landed $10.6-million in venture funding and is also expanding its relationship with the Associated Press — all of which I wrote about in a Globe and Mail news story and a blog post.

Jay recently wrote a Facebook note about the deal, in which he said that he sees great potential for NowPublic to evolve from what it is now into a true “networked journalism” site with full-fledged news reports as well as photos and videos — but he says that doing so will likely take more co-ordination and editorial oversight than the site is currently doing (at the moment NowPublic has no staff editors, although it does have former CTV reporter Mark Schneider overseeing things).

Jay has been through his own experiment with networked journalism in the Assignment Zero project, which was a co-venture with Wired magazine writer Jeff “Crowdsourcing” Howe and a host of others (more on that in this post by Jeff and a follow-up here) and is currently engaged in another with HuffingtonPost.com — a political reporting effort called OffTheBus. Jay did an interview about Assignment Zero here.

After I read his note, I asked Jay whether I could excerpt some of his thoughts here (for you non-Facebook types), and he graciously agreed.

Continue reading “Jay Rosen’s thoughts on NowPublic”

Troll alert: The two Johns — Elton and Dvorak

We’ve got a double-troll whammy today — twin trolls, if you will — from the always dependable John Dvorak at PCMag and from Sir Elton John in The Sun, that most credible of British tabloids. The former launched into one of his patented Dvorak rants, thick with portents of imminent doom but thin on actual facts and/or details, in this case about the coming bubble (a troll that caught Fred Wilson and Marshall Kirkpatrick, among others).

In typical fashion, the rant begins with a totally unsupported and ridiculously over-the-top statement:

“Every single person working in the media today who experienced the dot-com bubble in 1999 to 2000 believes that we are going through the exact same process and can expect the exact same results — a bust.”

Brilliant. Notice how it’s not just a few people, or even a few smart people, but “every single person working in the media today.” And they’re not just expecting something similar — no, they’re expecting the “exact same” results.

But the best part of this particular rant is the way he bolsters his argument that this is just another bubble like so many others, by pointing to the previous bubbles in CD-ROM software, pad-based computing, IBM-compatible PCs and software for word processing and spreadsheets. WTF? Apparently, any evolutionary process in which some companies cease to exist — even if they are bought by other companies — qualifies as a bubble for John.

Sir Elton isn’t in quite the same league as Dvorak (but then who is, really). Still, he manages to get off a few howlers in this Sun piece about how he wants to “close down the Internet” because it’s ruining the music business:

“I do think it would be an incredible experiment to shut down the whole internet for five years and see what sort of art is produced over that span… there’s too much technology available… I’m sure, as far as music goes, it would be much more interesting.”

Classic. Of course, as the article points out, Sir Elton has been raking in the dough from digital downloads of his music (just the right amount of technology there, apparently). His Elton-ness also tries to get us to believe that “in the early Seventies there were at least ten albums released every week that were fantastic.” Ten fantastic albums a week in the Seventies? By who — the Bee Gees? Captain and Tennille? Foreigner? Please.

At least it won’t be called Club Mouse

As was widely rumoured a couple of months ago, Club Penguin is being acquired, but not by Sony, who was said to be deep in takeover talks with the company when I last wrote about it. Instead, the wildly successful virtual world for kids — which was started by three guys from Kelowna, B.C. as a side project about a year and a half ago — is being bought by The House That Mickey Built.

snipshot_e4ufvcdnb3u.jpgAt the time of the Sony rumours, Disney was said to be interested in buying Webkinz, another Canadian-built virtual world for kids. According to the Wall Street Journal and PaidContent, the price tag on the current deal is $350-million cash plus an “earnout” of $350-million based on future performance. That’s a pretty handsome return on a little over a year’s worth of work, and from what I have been told — by at least one VC who was kicking himself for not being able to get in on the deal — ClubPenguin.com had not taken any substantial venture capital money whatsoever. The Globe did a story on the guys who created the site last fall.

Further reading:

Staci at PaidContent has a good overview of the deal (so does the Journal) including some comments from Disney CEO Bob Iger, and points out that members of Club Penguin are pretty protective of the site (which carries no advertising of any kind). Mike Arrington says that previous talks with Sony and others got derailed in part because Club Penguin donates a chunk of its profits to charity.

Should Murdoch make the Journal free?

If you’re a traditional journalist with any interest in online media whatsoever, one of the central questions hovering over the acquisition of the Wall Street Journal is whether the Journal’s new proprietor, Australian billionaire Rupert Murdoch, will remove the pay wall and give the Journal away for free. He has said several times that he is considering such a move, but he has also mused about whether it would be worth it or not.

snipshot_e4udb69k0ux.jpgI know that many newspapers have looked to the Journal as a model for what a paper can do online, because it is one of the few that has charged for its content from the very beginning and built what appears to be a successful business doing so. But does it make sense now? This Wall Street Journal story notes that Murdoch commissioned a study that looked at what going free would mean for the paper, and from that he concluded that while readership would grow by a factor of 10, advertising would likely only grow by a factor of five, and the loss of subscription revenue would effectively make the whole thing a wash. In other words, maybe’s it’s not worth it. However, Murdoch has asked questions like this:

“What if, at the Journal, we spent $100 million a year hiring all the best business journalists in the world? Say 200 of them. And spent some money on establishing the brand but went global — a great, great newspaper with big, iconic names, outstanding writers, reporters, experts. And then you make it free, online only. No printing plants, no paper, no trucks.”

Fred Wilson has made it clear what his view is: Murdoch should make the WSJ free online, before he does anything else. Fred points out that the New York Times gets 10 times the traffic that the Wall Street Journal does, and is far more often the centre of an online discussion about business or financial matters. That kind of thing is going to drive Murdoch crazy.

Larry Kramer, formerly with Marketwatch, has a different idea about how Murdoch can keep charging for the Journal and use Marketwatch as a free alternative, an adjunct to his much-anticipated Fox Business Channel, but I’m not sure that would work. I’m going with Fred on this one. The Journal could be so much more relevant online if it were free, and Murdoch is just the guy to do it.

Further reading:

Darian Benkoil at Corante, a former AP correspondent and ABCNews editor, does the math and says that it doesn’t make sense for the Journal to go free (although I think one could question some of his assumptions), and Joe Wiesenthal has some thoughts over at Techdirt. Tony Hung at Deep Jive Interests isn’t so sure going free would be such a good thing for the Journal.