Pomplamoose Pas Encore

Internet IS disintermediation. It removes boundaries between services/product producers and consumers.

Which means that if your business model consists in standing between them, as a gatekeeper, then you have a positioning problem. Record companies have been learning this the hard way during the last decade.

We all know about Myspace and how musicians made their work popular before signing a contract with a record company (think Lily Allen and Arctic Monkeys).

It looks like even this time is over : the music industry business model is now getting a step further towards disintermediation with the smart, cheap and beautiful Pomplamoose. Read more »

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I’m no lawyer, my only exposure extends to our company law activities at my workplace and past legal battles regarding farming ground and such—did you know that as a farmer you can let you cows graze on someone else’s lawn and if he doesn’t object, you can argue that you are the owner? At least in the Netherlands, this happened to my family once.

I think there is a certain danger here, if Apple doesn’t fight it, which it does, while Palm Pre continues to try and gain access anyway. It seems very shady on Palm’s side, but doe sit have a case here? I will discuss the strategic implications, as far as I can identify them.

Apple, as we all know, is a very interesting company. It is very vertically integrated, building hardware, software, and has a large influence on the connection between them (e.g. mobile internet), as well as the content provided on them (e.g. music, movies, the app store). Some would call this a monopolistic situation and it seems strange that it gets away with this, while Microsoft, with something that is, for now, as trivial as a browser, does not (in the EU at least).

iTunes is a powerhouse for media and mobile software, but this can be segmented into different areas and different phases. The iPod was released at the beginning of this decade (phase 0), shortly after iTunes, which then built up a power-position for music (phase 1). As the iPods became mobile computing devices, more content was being shipped via iTunes, such as video and those little games (phase 2). Finally, 2 years ago, the iPhone was released, with about a year later, the App Store (phase 3).

Music, phase 1 of ITunes’ power play, is the area which the Palm Pre (to my understanding) is impeding upon. You could easily see Video being the next thing to sync, though I’m not sure if this is possible now. Unless the iPhone takes a step back towards a more web-app-based approach, I don’t see the Palm Pre being a threat to Apple on the App Store front.

Apart from a phase-based perspective, there is also the matter of the lowest common denominator (LCD). Why do people buy mobile Apple products? I would argue that nearly everyone buys an iPod, because of playing music (and not so much video), while a growing niche segment buys the iPod Touch and iPhone for applications and games, as well as media. The LCD is music and it continues to be of strategic relevance to Apple, even with the hyping of their App Store, where Apple will continue to stay entrenched indefinitely.

So, from a strategic perspective, Palm Pre does not stand a chance. Apple will continue to make iTunes incompatible with each future version. Legally, on the other hand, I am not nearly qualified enough to make that assessment, though I think the “cow argument” may apply. If Palm Pre keeps trying hard enough, and continues to get a user-base that desires this link, there may be a legal argument towards loosening Apple’s grip on mobile media.

Since iTunes isn’t very profitable for Apple, I’m not sure what the implications will be for it, but I expect them to fight ’till the last breath.

Vincent
(Picture has no relation to this topic, but is of a cool movie nevertheless)

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Just one post this week, it is again the busy period in Vince’s house. This last week, I’ve read two predictions, both, by coincidence, based on the role-model of Apple. The first was David Carr’s, who asked for an iTunes for news in the New York Times. The second was Ian Betteridge’s, who predicted an iPhone-style app-store, controlled by Apple, for all of the Mac. Let me address them both here.

News… what has that looked like over the years? We had print, which lead to books and perhaps pamphlets. Let’s just jump to the 20th century. We’ve had the onslaught of the marketing age, which also made newspapers big. People have never paid for news really, they pay a minimal fee for the price of the paper, the rest of which is covered by advertisers. Then came the internet and it all went down the toilet. You, me, everyone imagined they could be a journalist, even if it meant just copying the text word-by-word of what someone else had written.

Compare that with music. It started with the production of sound, live performances, then the reproduction of sound across various media. The business-model was 90% of the time a straight sale. Music speaks to our brain, differently from the way news does (it’s all drama anyway, right?), and we are hooked on it, like a drug. So we pay and we pay and we pay. Then comes the internet and the magic of painless reproduction and distribution. The power-houses that are media-companies were slow to catch on and it’s pirate-city all round. CD sales go down! In comes smart Apple with their silly little white box with one button and saves the whole damn industry! We think, oh my god, Apple saved retail! What Apple in fact did was close the loop again. Instead of artist -> CD -> shop -> CD -> consumer, we now have artist -> mp3/4/5 -> iTunes -> iPod -> consumer. Everyone wins, though most of all, Apple.

What is the key here?

• For one, music isn’t news. As I pointed out, music is a drug, while news is a duty. Music is fun, while news is … interesting? We can live without the news, believe me, we can’t live without music.
• Two, news was never a powerful business model to begin with. Since the days of Soap-operas, all media has been owned by advertisers, who somehow have made this industry survive, even though no one was really willing to pay for it. Yes, we can also live without television, but we can’t live without music.
• Music is also a tightly controlled product, it’s expensive to make music and to get it into your ears. News, on the other hand, the media has long learned how easy it is to copy-paste.

The internet has shaken both industries and much more so news. Because its sugar-daddies, the advertisers, suddenly realised that they could get away with no longer paying for the expensive process of print and distribution, as well as having many more options to advertise online. The power-position, which was already unbalanced in the first place, has shifted even more in the direction of the advertisers.

For music, the power of supply continued to be in the hands of the media-companies. In case you haven’t noticed, those are some powerful companies and the world of music and other entertainment media is locked down with some big nails—Pandora, Hulu, Joost, iTunes, take your pick, chances are that most of these are not in your country. The internet has had an effect, to be sure, but they control the supply and they have lot’s of money to change things. They finally got iTunes to succumb as well, with their now variable pricing.

There is no analogy here and no matter the superficial similarities and the coming of the “iReader,” there never will be. News will never be something that we want to pay for. Who wants to pay to hear that Hurricane XX has killed millions, or Region YY is filled with starving children, or that Region ZZ has weapons of mass destruction? Because, that, unlike the stories we may read on the internet, is what news really is: making us aware that our planet isn’t all that. Give me a good song any day over having to hear that!

Just briefly, the iPhone store translated to Macs. Why it’s different: it’s i…Phone, the most locked-down technology on this planet. Vs. the PC, which is the most unlocked technology on the planet. Need I spell it out?

The greater point I’m making is that frequently “visionaries” and “entrepreneurs” write their business plan or manifesto stating that because X is so, my business will work that way too. Analogies, taken too loosely, will kill your business and rather than taking the words of visionaries at their face value, we should work it out: Was X like that really, and is your business like that really too? Chances are… it’s not.

Vincent

(man, I love it when I can pump out all this text in 15 min. or less)

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Continuing our short(!) screenshot-series on geeky innovations… Thank you, Skitch, for making it so easy!

I was really missing a collection of my Loved Tracks in Last.fm and it looks like the new version delivered. What we need next is a way for ratings in iTunes (and more specifically my iPod) to automatically register as “loved” in Last.fm, and for that to create a TheFilter-like service of creating custom playlists that I like.

*Sigh* why does interoperability of web-to-real-world-to-web have to be so complicated?

Vincent

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This may qualify as the most ridiculous post, I’ve ever written. But it’s a Sunday. And I felt it simply had to be said. Headphones are, to me, a vital part of our society and, at the same time, they are so prone to failure, that it may very well be the biggest pain (read: need for improvement) I’ve ever felt during my life.

I’ve used headphones since I was 14 maybe, back when my first Discman was made out of metal, contained four batteries, and weighed about the same as a satelite-phone (if those still exist). I’m sure if I turned it on today, it would still work. Headphones, however, are a completely different matter.

Headphones have evolved and devolved in my life. I started with the sucker-buys: super-multi-tripple-bass-boosting Sonys. But no matter how many I bought (all earphones), they all broke after a few months, at the latest. That was, on average, a good €20 thrown away every time.

Finally, I got fed up and plunged down to €3 headphones, the kind that lie next to the chewing-gum in your super(tech)market. I figured, why waste money, and instead buy in bulk and replace every few weeks. It worked pretty well for a while… of course the sound is nothing to write home about.

Finally, when I got my first & only iPod, three years ago or so, I discovered the Sennheiser PX200’s.

The upside:

• Not too expensive; paid €60 on the first purchase, and €25 on the second. I generally don’t think people should spend more than that for what is essentially a perishable good.
• Came in white—matching the iPod.
• STURDY – that’s right. Except for a few design-flaws, these are the most sturdy headphones I’ve ever had, the first pair lasting nearly two years; the second about a year.
• Sound-insulating: that way I enjoy the music for myself, and don’t bother anyone else.
• Stay on when I jog—important, as I jog 4 times a week.
• Great sound.
• Very portable—fold into the size of a pair of sunglasses.

The downside:

• A few design-flaws related to the wiring. If you close it a certain way, it actually cuts into the wiring. Also I just broke my second pair, because the wiring at the base, close to the plug, somehow broke… very annoyed with that, and wires in general.
• Insulates you from the rest of the world. Don’t try biking on a busy street with this sucker.
• Insulates you by making you look like a freak. This picture from 2 years ago in Barcelona says enough (well, actually the gigantic sunglasses don’t help either). Wearing these kinds of headphones really shouts out that you don’t want to talk to someone.

After breaking the second pair, I’m saying good bye to perhaps all headphones. They brought me much wisdom—80% of my iPod consumption is from podcasts with interesting people and on interesting subjects. They made me high—running with them is not only super-comfortable, but the sound is excellent, and helps getting your endorphins pumping. But they also made me anti-social, where I should be saying hello to my neighbours, I put on my headphones when I leave the house, forgetting everything around me.

Maybe, I’ll get another pair, I don’t know. Maybe when the next episode of ‘Stanford’s entrepreneurial thought leaders’ or ‘iInnovate’ comes out and I just have to learn something new. Maybe… and maybe I have to go cold turkey, smell the roses, listen to the wind, smile at the nice people around me, and reserve my sound-consumption for a club or a stereo. I’m sad now; an era is perhaps over.

But maybe, you have discovered the ultimate, never-breaking, super-multi-bassboosting headphones yourself? In which case, SHOUT IT OUT in the comments, as I want in.

Vincent

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Hey guys, Vincent here. Over the last few days, I’ve been enjoying the SXSW 2008 line-up of music—an annual tradition, where they release a torrent of free and legal (with some restrictions, I’m sure) independent music every year. It’s a sure way to discover bands that will make it big in a few months to a few years.

You can get the 3.5 GB torrent here and listen to them on the website here. !

Some of my favourite songs so far include:

• “Shooting Star” by Air Traffic
• “Old Song” by AM
• “Indigenous” by The Playing Favorites
• “Track 1″ by Voxhaul Broadcast

What are yours?

Btw. did you know that one of Tech IT Easy’s own, Cecil Dijoux, is an indie-artist? You can find his band’s, Supernormal, myspace-page here.

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