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Sequoia’s Roelof Botha: “Entrepreneurs Don’t Appreciate When They’re Onto A Good Thing”

jos — Tue, 22 May 2012 20:56:19 +0000

TechCrunch founder Mike Arrington sat down with Sequoia Capital partner Roelof Botha in another fireside chat at TechCrunch Disrupt NY 2012 this morning. Prior to joining Sequoia Capital in 2003, Botha served as the Chief Financial Officer of PayPal during its sale to eBay , and today considers himself a champion of consumer web plays. He also sits on the board of hot startups like Eventbrite , Square , TokBox , Tumblr , and Jawbone , to name a few. And he’s an investor in other startups like Unity Technologies , a company helping developers build 3D games, as well as the interesting (and sci-fi-ish) Gene Security Network , which Botha describes as helping parents have healthy babies via in vitro fertilization. Of course, Arrington then asked how close we were to being able to design our own babies, and Botha, taking the question seriously, answered that it was “feasible to some extent today,” but that there’s “just an ethics question.” (Oh you think?) But the more interesting parts of the interview involved Botha’s vision for entrepreneurs building companies today, and his concerns that not enough are focused on the long road ahead. Arrington asked Botha to expand on several earlier statements he’s made, where he encouraged tech founders not to sell too early. Botha had said that “people need to be more greedy, and more patient,” for example, and noted that Sequoia “loved being in business with entrepreneurs that want to build something enduring.” He openly pondered what the tech ecosystem would be like if companies like Facebook, Apple and Microsoft had sold out early, too. Arrington also asked him to list other companies that had sold too early. Botha did say he would always wonder about what would have happened with YouTube had Google not acquired them. “Google has done a fantastic job,” said Botha, who also interestingly noted that YouTube was now profitable. “Entrepreneurs don’t appreciate when they’re onto a good thing,” said Botha, “the long run can be speculator,” he said. Companies can even see 10x returns after going public, he added, saying that it took LinkedIn eight years to build its business to the scale it is today. Taking a note from Steve Jobs, Botha then encouraged entrepreneurs to build something that “makes a dent in the universe.” One of the more controversial portions of the chat involved Botha’s discussion of Sequoia’s scout program which PandoDaily recently uncovered. Botha said that the spirit behind the program, which he described as “stealth” but not “secret,” was to give entrepreneurs the chance to make angel investments of their own before they’ve achieved liquidity. Sequoia even had internal discussions about whether or not to make a public announcement about the program, he said. The firm has “a small amount” of money invested in this program and dozens of scouts, but Botha took issue with claims that entrepreneurs didn’t know where the money was coming from. “We always wire the money,” he says, indicating that it would be hard for a startup founder to not know that Sequoia was behind the investments.

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Sequoia’s Roelof Botha: “Entrepreneurs Don’t Appreciate When They’re Onto A Good Thing”

Stevie Turns Your Social Feeds Into TV Shows

vertical8 — Tue, 22 May 2012 02:47:36 +0000

We spend more and more time on social networks, but sometimes it can feel like work. I mean, scrolling through your news feed isn’t work work, but it’s not quite as easy as vegging out on your couch and watching TV. That’s where a new startup called Stevie comes in, with a website launching today at Disrupt, along with mobile apps that function as remote controls. Stevie looks at content shared in your social network feeds and elsewhere on the Web, and it assembles that content into TV shows that you can watch, shows with names like The Comedy Strip, Music Non-Stop, and Celeb TV. Naturally, the shows incorporate video content that your friends have shared, but they also include things like Facebook status updates, tweets, shared headlines, and birthdays, running mostly as tickers under the video. Essentially, it’s a way to watch Facebook and Twitter on your TV. Co-founder and Chief Creative Technologist Gil Rimon argues that this is the right way to do “social TV.” Apps like GetGlue, which offer check ins and other social interactions around existing TV content, aren’t a good fit for how people watch TV now, because they ignore its essentially passive nature. Stevie takes the opposite tack — instead of trying to encourage new types of behavior, it’s introducing new content into the traditional couch potato experience. Rimon compares the app to Pandora. In the same way that Pandora learns your musical tastes and preferences, automatically delivering music that’s tailored to your tastes, Stevie uses something that the team calls “The Stevie Factor” to look at your social data (such as Facebook Likes) and automatically stitch together the videos and other content that you’ll probably enjoy. When Rimon demonstrated Stevie for me, I was particularly impressed by the look and feel. Granted, I don’t watch much TV aside from Game of Thrones and Doctor Who , but the video content struck me as quite bubbly and polished, especially for something that was being algorithmically assembled on-the-fly. Rimon’s experience in TV writing, editing, and presenting probably helps with that. I expect Stevie will become even more appealing when it’s available on connected TV devices. The company has raised $300,000 in angel funding from investors including Jeff Pulver and Gigi Levy, and it’s participating in the Microsoft Accelerator for Azure program in Tel Aviv. Oh, and if you’re interested in couples who run startups, here’s another one — Rimon is married to his co-founder and CEO Yael Givon. You can visit the Stevie website here , download the iPhone app here , and download the Android app here . (Again, the apps aren’t standalone experiences, but remote controls for watching on the browser.) Disrupt Q&A Q: How do you connect the Internet to the TC? A: We’re not delivering hardware — it’s a web-based experience, with more devices (starting with iPad) coming soon. Q: Who is your competition? A: No direct competition, though of course there are other video discovery companies. But they’re not replicating the TV experience. The real competitor might be old-fashioned TV channels. Q: Why hasn’t connected TV taken off? A: That’s changing — see, for example, the growth of Apple TV.

Led By Former Microsofties, GitHub Brings The Party To Enterprise With New Windows Client

ACMAir — Tue, 22 May 2012 02:33:55 +0000

GitHub , the source code hosting and collaboration service, has been growing like gangbusters. The site now has over 1.6 million registered developers, hosting over 2.8 million repositories on everything from jQuery and Ruby on Rails to node.js and Redis. At the outset, Github was just a side project, a tool to make developers’ lives easier (its first slogan: “Git hosting: No longer a pain in the ass.”) Github is still a boot-strapped operation, but as both its user base and its own hacker collective (now at 73 strong) have grown, there has been an increasing demand for tools that fall outside Apple’s domain. Today, about 50 percent of GitHub’s traffic comes from Windows users, and, as a result, the startup has finally heeded demand and is now officially bringing the party to Windows, launching a desktop app to address the challenges of developing on Windows and to make it easy for Windows developers to collaborate in open-source and private repositories. GitHub released a similarly-targeted Mac client last year, which has since seen wide adoption. However, as popular as Apple has become, the majority of enterprise development still takes place in a Windows environment. As a result, GitHub has been looking to make its platform more appealing to corporate developers and enterprise, and its new Windows app intends to do just that. Developing in private or open-source for Windows has lagged behind in terms of adoption among developers because they’ve lacked a full toolset for project collaboration, GitHub CTO Tom Preston-Werner says, so, with its new Windows client, the startup just made it easier to get up and running using Git and GitHub on Windows machines. GitHub for Windows is a native app that runs on Windows XP, Vista, 7 and even the pre-release Windows 8, and includes a complete installation of msysGit. The app syncs users’ code to the cloud and allows developers to clone their repositories right from the app or directly from GitHub.com with its new “Clone in Windows” button. Of course, anyone who’s been following GitHub’s progress will notice that it took the team more than a few days to finally release its Windows client. As one might expect, the reason for this was, besides a need to tear down development hurdles for Windows developers, that the team wanted to create an app (and a toolset) they would actually use themselves. In order words, to build a Windows app by Windows developers — for Windows developers. To do that, GitHub has been amassing a pretty serious team of developers who collectively — aside from having cache in the community — own quite a bit of experience developing on and for Windows. For starters, GitHub brought on Phil Haack and Paul Betts, both of whom left Microsoft to join GitHub to help ship the app. Before GitHub, Haack led the development of both ASP.NET MVC and NuGet, among other things, during his four-plus year stint as a senior program manager at Microsoft. Paul Betts joined Github following a four-year run at Microsoft, where he worked on Vista, and created development tools, among other things. GitHub for Windows also relied on help from Tim Clem , Cameron McEfee (the guy behind GitHub’s Octocats ), and Adam Roben to get the startup’s new app ready for shipping. Developing tools that are useful to Windows developers right out of the box is essential to the success of GitHub. Of course, most big companies are still hesitant to put their code in the cloud, and although the startup puts most of its focus on open source project hosting, it’s free. The company makes its money off of its private repositories, and so better tools for companies and corporate developers could mean a significant boost in revenue for GitHub. Of course, it’s also for the love of a challenge. For more, find GitHub’s announcement here .

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Led By Former Microsofties, GitHub Brings The Party To Enterprise With New Windows Client

Punch! Launches A Platform For Building Interactive iPad Apps, Sans Developers

admin — Tue, 22 May 2012 02:24:02 +0000

It’s a familiar story in the tech world: A company wants to build a consumer product, finds that the necessary tools aren’t available, creates its own tools, then realizes it has created a broader platform. David Bennahum offers some examples: Zip2 . Vignette . TypePad . And yes, his startup Punch! , where Bennahum is co-founder and CEO, and which is launching its publishing platform at Disrupt. Earlier this year, I wrote about the launch of the Punch! app , which offers current event themed games, usually with a satirical bent. (Or, as Bennahum describes it, “culturally relevant content that could only exist on a tablet.”) Some of the early games included one where players choose the wardrobe of then-presidential candidate Rick Santorum, and a general pop culture quiz with challenges like ranking Farrelly Bros. movies based on box office success. Behind the scenes, Bennahum says the challenge was to add content in a timely manner, so that it was “topical and relevant” — relatively easy for a newspapers or magazines that are only uploading new articles and other content, but harder for Punch!, which doesn’t create articles but rather “mini apps.” To introduce new content at the right pace, Punch needed to cut down on the development time, and it needed to avoid triggering the App Store review process whenever it added a new game. So that’s what the Punch! publishing platform does. It offers a content management system where companies can create apps without writing any code in Objective C. Like Punch! itself, these apps shouldn’t just offer a tablet-optimized version of a printed product, but instead include interactivity and gaming. It includes templates for content types like maps, “drag to fill,” and games and quizzes. And Bennahum says that by “creating an environment that sends scripts to effectively render these app-like experiences,” publishers can introduce mini apps without adding code, which means that once they get the initial approval from Apple, they don’t need to wait on further approval for every new piece of content. The Punch! platform will allow publishers and other media companies to pay Punch to license the technology and, optionally, to provide additional services to help get them get started. As for the Punch! app itself, Bennahum says it has now seen 35,000 user sessions. The next challenge is getting on a more regular publishing schedule, which should hopefully happen in the next few weeks. You can read more about the publishing system here . Disrupt Q&A Q: What existing tools is this replacing? A: To create app-like experiences, most publishers are hiring app development studios. Or they’re using tools that are replicating the print experience. Q: Tell us more about the pricing. A: $15,000 license for the year, versus $150,000 on average for app development. Q: Who are the ideal clients? A: Media/entertainment companies that have already experimented with tablets and been frustrated with what’s available. Also, brands that want to engage their audiences. Punch! could also partner with companies to create new publications. Q: What about distribution and discovery tools are you offering? A: None yet. This is probably for customers who are already engaging an audience on another medium.

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Punch! Launches A Platform For Building Interactive iPad Apps, Sans Developers

StatCounter: Google Chrome Pushes Past Microsoft’s Internet Explorer (Again)

Achilles — Mon, 21 May 2012 19:09:20 +0000

Well, it’s official. Or at least it’s official if you believe in StatCounter’s data . Google’s Chrome web browser has overtaken Microsoft’s Internet Explorer. For real this time. Maybe. The stat-counting firm compiled data for the week of May 14th through May 20th, showing that Chrome had a market share of 32.76%, compared with IE’s 31.94%. This isn’t the first time that Chrome has gotten ahead, however. And the race itself is close – perhaps too close to call. At the start of this week, Chrome dipped back down to 31.88% market share, which was only a bit ahead of IE’s 31.47%. There’s also the big concern regarding StatCounter’s data. As Microsoft (of course) has pointed out before , these aren’t necessarily numbers you can take to the bank. Last month, when Chrome briefly won the weekend battle, Microsoft downright ranted about the quality of StatCounter’s data on its official blog. (It appeared, at the time, that Chrome usage surged on weekends, proving that users liked Chrome better when they had a choice – outside of I.T. control at work, that is). Microsoft noted that StatCounter doesn’t adjust for pre-rendering (loading pages in the background which the user never sees and may never even click on), nor does it “geoweight” the data to paint a more accurate picture of worldwide usage. Instead, with StatCounter, it’s just raw data. Microsoft also said that if browser share had been weighted appropriately, it wouldn’t have been such a close race. But StatCounter says that, as of May 1st, it has been adjusting its browser stats to remove the effect of pre-rendering in Google Chrome. From that point on, pre-rendered pages (which are not actually viewed) have not included in its stats. Say what now, Microsoft? While those discrepancies are notable, it’s still worth mentioning that IE’s share has been steadily dropping for some time. StatCounter may just be the canary in the coal mine indicting the bigger shift ahead. via GlobalNerdy

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StatCounter: Google Chrome Pushes Past Microsoft’s Internet Explorer (Again)

Newspaper Attacks UK Government For Its ‘Closeness’ To Google

blogger — Sat, 19 May 2012 18:39:33 +0000

UK tabloid newspaper The Daily Mail, has decided to raise the issue of Google’s influence on the UK government, after uncovering the fact that Conservative Party ministers have held meetings with Google an average of once a month since the General Election two years ago. There have been 23 meetings between Tory ministers and Google since June 2010, with Prime Minister David Cameron meeting Google three times and George Osborne – who as Chancellor of the Exchequer is supposed to meet with business leaders – four times in two years. The story needs to be a seen in a wider context. The Conservatives have recently come under fire for having too close a relationship to another powerful entity, News Corporation (as did the Labour party during its tenure). A huge inquiry into Press standards has in large part focused on the ties between Rupert Murdoch’s media giant and the Conservatives. But what the report buries way down in the article, is the number of times the newspaper itself has met with the Government. A Google spokesperson told us: “It’s absolutely right that governments speak with companies about issues that affect their citizens. The British Government makes the list of those meetings publicly available – including the Daily Mail’s 34 meetings over the same period.” In other words, the Daily Mail has met with the Government almost one and a half times a month (on average) since they entered office – that’s quite a bit more than Google has. It’s likely those were high-level meetings, not editorial ones. That said, the issue does raise the question of Google’s closeness to the UK government and its ability to grab the ear of the Government on a number of topics. It’s the kind of access a lot of companies would be envious of. Culture minister Ed Vaizey has met the firm seven times. Culture Secretary boss Jeremy Hunt has held four meetings. In David Cameron’s first months as party leader in 2006 and 2007 (though not yet Prime Minister), he spoke to the annual Google Zeitgeist conference. Three senior figures have moved between the Tories and Google in the last few years. Rachel Whetstone is Global head of communications and public policy at Google and is married to David Cameron’s former chief of staff, Steve Hilton. Naomi Gummer was formerly adviser to Culture Secretary Jeremy Hunt, but is now a public policy adviser to Google. Amy Fisher Was a press officer for Google, and is now a special adviser to the Environment Secretary Caroline Spelman. On Hilton, the right wing Daily Mail newspaper has rarely missed an opportunity to attack his more radical attempts to shake up government thinking about technology and its effect on society. But it’s more likely that the Conservatives – in part driven by Hilton’s thinking – have realised that the world has moved away from the green-screen, big-IT projects which used to fill the coffers of the likes of EDS and others, towards embracing a more open standards approach. On the ground this has fed into attempts to open up government data, and led also the innovative project known as Gov.uk , which is taking a startup approach to government online, employing many of the UK’s best engineers and tech stars. It’s also quite something to see a sentence describing Hilton as the “shaven-headed son of Hungarian immigrants” – a phrase which betrays the Mail’s antipathy to alternative thinking. In March it was announced that Mr. Hilton was going to take an academic post at Stanford University in California to be near his wife who works at Google. He plans to return next year, though it’s not yet clear whether he will re-join the government. Of course, back in the real world, these West Wing-like moves of advisers between big business and governments go on literally all the time. We don’t currently have the equivalent figures for meetings with Microsoft or Cisco, or Facebook, IBM or other companies, but I’d be amazed if there were not similar factoids waiting to scurry forth if someone someone decided to lift a few rocks. Indeed, Microsoft, Cisco and many other large tech companies have appeared several times at the government’s ‘Tech City’ meetings. So quite why the Daily Mail has decided to home in on this issue is a little bit of a mystery. It may be that the story was placed as an attack by the Labour Party. Their health IT scheme to store patients’ records failed spectacularly just before they left office, so they would have smarted at the suggestion by Cameron that a company like Google could probably do a better job. The newspaper quotes Helen Goodman, Labour’s media spokesman, who says “Of course it is important for ministers to listen to business, but a meeting with Google every month does look like the sort of privileged access that small businesses can only dream of.” Unfortunately, she neglects to mention the numerous tiny tech startups that have been invited to Number 10 Downing Street over the last couple of years as part of the government’s Tech City initiative, and its purchase of an entire building – Campus London – in East London which is housing small tech startups that have have nothing to do with Google. (As disclosure, I’m co-founder of a co-working space that’s a tenant in that building, but frankly, I’d point this out even if it wasn’t). Then again, Google doesn’t help its own cause. In Europe it does not have a great record on tax. As Goodman points out: “Ministers must disclose what they discussed. Did they challenge Google over their repellent tax avoidance, which was uncovered by the Daily Mail?” It’s here that criticism could land a big punch. Google has been oft criticised for paying tax on less than a quarter of its UK income. In 2010 it generated £2.1 billion in the UK but with its international operations based Ireland, where corporation tax is much lower than the UK, it escapes a great deal of tax. And Google hasn’t always helped its own cause. Last month Google executive Naomi Gummer, until recently a Conservative minister’s political adviser, caused a furore in the press when she implied (not unreasonably?) that it was the job of parents to stop children seeing adult content online, not Internet companies. Currently a debate rages in the UK about creating an ‘off switch’ at ISP level to block porn, allowing parents baffled by content settings or Net Nanny software to simply order a ‘clean’ version of the Internet direct from their ISP. A Conservative Party spokesman told the Mail: “All these meetings have been properly declared and it is normal for relevant ministers to meet with a company of this size.” Ultimately the Mail’s story does raise questions of perceptions over-all but as a major UK tech player, it would be extremely odd for it not to meet with whoever was in power fairly regularly. Neither Facebook not Twitter, for instance, have anything like the huge engineering bases and offices Google has in the UK. Do we want our politicians to remain in a worldview of tech dominated by the desktop and ‘licenses’ or one where developers, startups and apps can thrive? I’d hazard not.

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Newspaper Attacks UK Government For Its ‘Closeness’ To Google

Charts: Facebook’s IPO In Historical Context And Its Share Price Over Time

jos — Fri, 18 May 2012 18:22:45 +0000

Facebook will be the largest tech IPO in history today as the company and its early shareholders raise about $16 billion at the final price of $38 a share. There is also an allotment for them to sell up to $2.4 billion more in the next 30 days. Here’s how it compares to other historical IPOs, according to NASDAQ data. Then here’s how it compares to how much Google and Microsoft each raised in their respective IPOs. We also have historical price data from SecondMarket , which is a private secondary market that became popular among former Facebook employees who wanted to offload part of their stake in the company. Here’s more data from them : Facebook has outperformed many of the largest tech companies in the world over last few years. (That’s not totally surprising though since they started from a much lower base.) Here’s how the number of transactions has scaled up on SecondMarket over the last few years.

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Charts: Facebook’s IPO In Historical Context And Its Share Price Over Time

Analysts: Nokia On Track To Burn Through Its Whole $6B Cash Pile In Next 2 Years

admin2 — Fri, 18 May 2012 18:17:23 +0000

The Facebook IPO is expected to usher in a day of massive trading volumes on the markets, and some believe that might translate to a lift for some tech stocks . But one that could really use some help has just been served another course of bad press: Nokia is apparently burning through its cash reserves — fast. The company, for years the biggest mobile phone maker in the world, has fallen on very tough times, as competition from companies like Samsung, Apple and a barrage of inexpensive device makers, have translated into declines in sales, market share and profitability. That’s now translating into what has been identified as another issue: the burning of the cash pile. In the last five quarters, Nokia has burned through €2.1 billion ($2.7 billion) from its cash reserves. Analysts polled by Reuters on average believe that at the rate Nokia is going, it will go through another €2 billion ($2.5 billion) in the next three quarters, with the total current cash pile of €4.9 billion ($6 billion) gone within two years. To put that in some context, in 2007 Nokia had cash reserves of €10 billion in 2007 ($12.7 billion). That points to its cash pile burn accelerating — a result of the fact that the company has been trying to transform its business, which requires investment, while at the same time seeing massive sales drops: In the company’s last quarterly earnings , reported April 18, Nokia reported that overall revenues were down by $4 billion (€3.4 billion) to $9.7 billion (€7.4 billion). Smartphones, the core of Nokia’s fightback strategy, declined by more than 50 percent both in revenues and unit sales, and the company saw a 40 percent drop in revenues from devices, its biggest business, with sales in those now at €4.2 billion. Nokia also swung to an operating loss of $1.7 billion, blaming the double-whammy of competition from Apple/Google as well as restructuring costs, as the company has pushed to put a stronger emphasis on its new line of smartphones in a race to gain back its rapidly disappearing market share in the higher-margin end of the smartphone market. That market share has been slipping for some time now, but it was in the last quarter that it finally slipped enough to put Nokia into number-two behind Samsung. According to Q1 figures out earlier this week from Gartner , Nokia now has 19.8 percent of the mobile market to Samsung’s 20.7 percent. While Samsung’s sales have been rising, up to 86.6 million units from 68.8 million in the quarter a year ago, Nokia’s have been going in the reverse direction: now at 83.1 million units compared to 107.6 million a year ago. Nokia currently has two tranches of credit bonds outstanding: bonds of €1.25 billion euros at 5.5 percent maturing in 2014 and €500 million of notes at 6.75 percent due in 2019. These have now reached the lowest investment grade status at S&P , Fitch and Moody’s with negative outlook. “I would not rule out the possibility of Nokia being downgraded further,” Nancy Utterback, a credit strategist at Aviva Investors, told Reuters. “The company is in a negative spiral that will be hard to reverse.” Reuters does also point out some bright spots. The company is expected to sell 20 million of its new Windows Phone-based smartphones this year, and 46 million next year. And if the company continues on its cost-reducing course, it could end 2012 with €2.8 billion ($3.6 billion) in net cash this year. And there is another possibility that we will likely see raised more and more: a “white knight” in the form of a Microsoft acquisition. The software company is already heavily entwined with Nokia over the use of the Windows Phone OS — paying Nokia $1 billion annually for this — a relationship that could well deepen if Nokia’s problems continue to grow. [Image: Images of Money, Flickr ]

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Analysts: Nokia On Track To Burn Through Its Whole $6B Cash Pile In Next 2 Years

Positionly Raises $300,000 For Search Engine Ranking From Point Nine, Others

Administrator — Thu, 17 May 2012 05:08:56 +0000

Search engine ranking startup Positionly has secured $300,000 seed funding from Berlin-based led by seed VC Point Nine Capital and joined by Angels Mariusz Gralewski and Michal Skrzynski . The idea behind Positionly’s service is that small business owners don’t need to know about SEO. Its clients already include TD Bank Opower, ESPN and TUI. Users can either enter search keywords manually or upload them from .csv files or a Google analytics account. The Poland-based service then tracks search engine rankings over time, generating simple search engine reports. Pricing ranges from $19 to $99 per month. However, its service proposition is not unique. For example, Link Assistant targets individual users as well as corporations with its desktop software Rank Tracker . The company boasts Microsoft Germany, MasterCard and General Electric amongst its 380,000 clients and is completely bootstrapped. Positionly enters a crowded market. SEOmoz received $18 million in backing earlier this month and offers Rank Tracker within a broader SEO monitoring service priced at $99 per month. Conductor got $10 million funding back in 2009, and Searchmetrics raised $11 million with a recent found this past January 2012 . Editor’s note: This post is written by contributor Natasha Starkell , CEO of GoalEurope , an outsourcing advisory firm and a publication about outsourcing, innovation and startups in Central and Eastern Europe.

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Positionly Raises $300,000 For Search Engine Ranking From Point Nine, Others

Forrester: 32.1 Million U.S. Households Now Access Online Video On Their TVs

admin2 — Wed, 16 May 2012 23:04:06 +0000

Almost 115 million households in the U.S. currently own at least one TV set and 36 million own four or more. That’s a huge market and as Apple, Google and Microsoft try to wrestle more of this business away from the traditional content and hardware players, the old-school cable and satellite providers now suddenly have to content with this new group of challengers that, until now, barely registered on their radars. According to Forrester analyst James McQuivey , it’s Microsoft that’s winning this platform war so far. Why? Microsoft, MCquivey argues, currently has a massive lead over its competitors thanks to its Xbox360. According to a new report by Forrester , the number of U.S. households that watch online video on a TV set is now up to 32.1 million, up from just 24.8 million a year ago. The majority of these households use their game consoles to do so. The adoption of connected TVs is also moving ahead quickly. Forrester estimates that 18.5 million households now use them to stream online video in the living room. Over-the-top set-top boxes like the Apple TV, Boxee and Roku, however, are still niche products, with just 4% of U.S. online households owning one at the end of 2011. Looking ahead, Forrester estimates that by 2016, 66.8 million U.S. households will have connected their TV sets to the Internet and 89% of HDTVs sold will be connectable. In this quickly growing market, McQuivey argues, it’s all about who owns the platform. Microsoft is in the lead right now, but still, only 49% of Xbox 360 owners currently connect their consoles to the net. McQuivey argues that in order keep its lead, Microsoft has to push this number to 75% and highlight the numerous video options beyond Netflix it already offers. Google, says McQuivey in his blog post today, “has to push Android onto every TV device, including the Motorola set-top-boxes it is about to own.” Apple, of course, is widely rumored to be working on a TV set as well. McQuivey and his colleagues, however, think that Apple shouldn’t just sell a replacement TV. Instead, the company should focus on something more akin to a smaller, 32-inch screen iHub that could be used in the dining room or kitchen to create a central hub for the family to gather around and use a shared calendar, Facetime, and view photos and videos. [image credit: stevestein1982 ]

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Forrester: 32.1 Million U.S. Households Now Access Online Video On Their TVs