Ok what's it all about?

I have found many of the interviews and articles written at this years "All Things D" conference interesting. I love how Reed Hastings is now loved by everyone by his own admission due to him carrying and delivering media companies large checks. Investors are all looking at the new big thing to invest in and to talk up the ones they have already taken the gamble with. It got me thinking...what is the internet really going to shake out to be? Is there a tech bubble?

Well first of all I love innovation. I have always been one of those early adopters, first in line for the new shiny Apple thing, in Vegas they would call me a sucker, hell, in Vegas they DO call me a sucker. If we look at the progression of the entertainment industry, it has been fraught with nervousness. Bob Iger correctly reminisced that when VHS came to market, people were calling the end of cinema as everyone would watch movies at home. In fact, movie attendance didn't drop, but a new audience that was not going to the movies was captured at home. Innovation is always good, but at the end of the day, what it really comes down to is can you successfully run a business and make money?

There are so many companies out there with huge audiences online, who are not making a penny. There are phenoms like Twitter, that claim to bring down governments but really are just a vehicle to sell more tickets for Ashton Kutcher's new movie, (and even then it doesn't work egh Ashton?). If you really need to know what I am up to, and what I have to say continuously in under 140 characters then you're a sad b*stard, let's face it. FourSquare...OK I'm just checking into the Gym, the restaurant, the coffee shop...it's a bit of fun, but WHY??? I get all that and more on Facebook...hold on ...Facebook!!!

Now Facebook is a real thing. By that what I mean is, I get it, I get the business, I get how they're going to make money, it's a Google. At ATD Eric Schmidt said that there are really a "gang of four" companies on the internet, Google, Facebook, Amazon and Apple:

Google - Doh, when you become a part of the lexicon, you're not going anywhere.

Facebook - It's like MySpace but with all your friends, no hookers hitting you up, and social tools, just get more advertising there and it's done.

Amazon - Check my credit card bill, home run, they got me, one click purchase never looked so good.

Apple - I bow to the gods of Apple; Jobs, Cook, Ive ...these people are gods to me and can adopt me any day!

But what's missing from the list? The content king? Where's content?

Hulu. First of all the wow was in the execution. It was/is flawless. I see the problem being that the partners don't really want to play ball, in fact, I think they would rather be attracting all the traffic to their own destinations or iPad apps. Just like cable, everyone is fighting for premium licensing fees and Hulu struggles to make ends meet on their sales.

Netflix. Let's be honest, no matter what Reed says, Netflix is the Comcast of the internet. It's a brilliant company, but again has to write huge checks to studios to distribute their content. They will only love you whilst the checks roll in.

But what about original content? I think it's time for a shift in perspective when it comes to original content. For a start, there's You Tube home made content. As brilliant as you Tube is, (and I am imagining that Eric Schmidt was rolling YT into Google in his gang of four), there is only a certain market for dog on skateboard or a fruit insulting other fruit. So YT goes out and buys Next New Networks, a company formed by friends and ex-bosses of mine, Jed Simmons and Fred Siebert. This is a smart move and signals that YT is getting into original content. The problem is the perception, that the content should be short form, low budget content. I think the time, it's a changing.

Sony's "Crackle", is actively looking to make new content, but have you actually watched or even heard of anything they've made? It's time to start looking at original online content just like normal cable content. You make programming that attract an audience and you market it. There seems to be this lingering "Web 2.0" idea that nothing on the web actually needs marketing..."people will just find it". Not true, if you make something, market it to the audience you're making it for. There's also this crazy thought that all marketing should be online. It's like saying cable companies would only advertise on cable.

At AOL I took a kids cartoon, and built it up through promotion and marketing both offline and online, sold it from online to TV, build a licensing business around it with 22 separate licenses worth million of dollars, all in under two years. One small, never heard of before kids property, front cover of Variety! Am I a genius, (those of you who know me will attest the answer is no), it's just the way you do it.

Anyhow, rant over for now. The future for the internet is simple:

Commerce

Community

Content

Search

Commerce...it's ubiquitous, Community...Facebook, Search... Google. The fact is no one has become the original content king yet, and that's a territory worth grabbing.

That's all for now.

Mal