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January 12, 2007

Internet and Digital Media Articles of the Day

Filed under: Digital New Media, US Internet, Asia Internet, News — Dave @ 9:49 pm

NYSE May Allows Real-Time Quotes; Google, CNBC To Provide Data Without Charge; WSJ.com To Sit out - The New York Stock Exchange plans test a program to allow real-time quotes to be published on financial info website with virtually no delay. If the proposal is approved by SEC, NYSE will sell to sites for $100,000 a month the ability to publish trade prices instantaneously. NYSE is keeping some data close to the vest, including the size of trades, and the quotes at which investors are willing to buy and sell shares. 

Study: Most Marketers Plan To Boost E-Mail Efforts - Eighty-five percent of marketers and marketing service providers expect that their budgets for online direct marketing will increase in 2007, according to a new study by Alterian, a marketing software provider. The majority of respondents said they specifically planned to increase e-mail spending. 

Yahoo and Akimbo Partner For Internet Video - Yahoo and Video On Demand firm Akimbo have partnered to bring Internet video to television, the companies announced this week at the Consumer Electronics Show in Las Vegas. Akimbo will offer selections from the Yahoo Video service to its subscribers, allowing them to watch videos submitted to the Internet on their living room TVs. 

Social Network Indicates Buying Choice - The use of data from user-generated content is a growing theme among marketers, and why not–the more data, the less advertising waste, right? Perhaps nothing tells a marketer more about a consumer than their social networking profiles, their friend’s social networking profiles, and the content they produce. The study “Network-Based Marketing: Identifying Likely Adopters via Consumer Networks,” from Wharton professor Shawndra Hill and NYU Stern professor Foster Provost shows that data mined from social networks–like chat or email conversations between friends–allows companies to find more likely targets for their products and services. Who you associate with is a great indicator of what kinds of products you’re likely to buy: No form of advertising is more powerful than word of mouth. 

Social Features Improve Yahoo Local - “We’re spending a lot of time thinking about social media at Yahoo,” said Frazier Miller, director of product management at Yahoo Local. You might be wondering what those social features are exactly, since Yahoo has often been criticized in the press for its failure to enter (in any significant capacity) the burgeoning social-networking market. In its own way, user contributions to Yahoo Local have actually become a significant way to mine data–their contributions add to the richness of the product and give Yahoo more user information to sell to advertisers. 

CBS Partners For Future - As expected, CBS Corp. Chief Les Moonves appeared on stage with Sling Media, maker of the Sling Box, and Linden Labs, creator of the online universe Second Life, during his keynote at the Consumer Electronics Show to announce two partnerships with Second Life and Google’s YouTube. Many feel that partnering with two companies that appear to pose a threat to CBS’ core business is either forward-thinking or aggressively stupid. 

Yahoo Expands Display Ad Deals With Morris Newspaper Group - Morris Communications, owner of 27 daily newspapers in 15 states, is the latest news media company to enter into a partnership with Yahoo. (A WSJ article the other days hinted at something imminent in that area.) The AP says the deal will allow Morris newspapers to deliver search, graphic and classified advertising to more consumers on the Internet. As is the case with the others, Morris’ sites will feature Yahoo HotJobs.

Hearst Buys Youth Social Networking Company eCrush - Hearst has finally made a move in the online M&A market, after its venture arm has been investing heavily in digital media startups (Sling Media, Brightcove and others): it has bought out teen and youth focused social networking company eCrush. Terms were not disclosed, but Hearst said the company had an EBITDA of $1.4 million in 2006.

eBay Buys Online Tickets Marketsplace StubHub For $310 Million - Updated: eBay has officially issues the release: it has bought StubHub for $310 million. The pending acquisition is expected to close before the end of March. Official release here. Original post: Not necessarily digital media, but shows how eBay is trying to get back on track on its acquisition strategy, after its huge Skype acquisition didn’t turn out as well as expected. 

Yahoo Buys Networking Site For Blog Junkies - Yahoo Tuesday confirmed rumors that it has acquired MyBlogLog, a fast-growing social networking site that lets blog readers connect with each other. The move is the latest in a series of purchases Yahoo has made over the last 18 months to expand its social media offerings. Terms of the deal were not disclosed, but it was reported to be worth about $10 million by Forbes.com. 

Oversee.net Buys Comparison Site LowFares.com - Online ad firm Oversee.net acquired travel-fare-comparison site LowFares.com, the companies announced Thursday. The deal was completed last Friday for an undisclosed amount. LowFares’ advertisers–including Priceline.com, Hotwire.com, Expedia.com, and Orbitz.com–provide travel leads. 

January 11, 2007

Internet and Software Deals of the Day

Filed under: Digital New Media, US Internet, Software, Fundings — Dave @ 10:44 pm

eBay Inc. (Nasdaq: EBAY has agreed to acquire StubHub Inc., a San Francisco-based online marketplace for the resale of event tickets. The deal is valued at $310 million in cash, and is expected to close later this quarter. StubHub had raised around $19 million in VC funding since its 2000 inception, including a $2.5 million infusion in 2002 at a post-money valuation of approximately $15 million. Backers include Allen & Co., Staenberg Venture Partners and Blue Water Capital. www.ebay.com www.stubhub.comGeneral Atlantic, Goldman Sachs, the NYSE Group and the Softbank Asian Infrastructure Fund each have agreed to acquire a 5% stake in the National Stock Exchange of India. Sellers are IFCI , IL &FS, ICICI, PNB and GIC. No financial terms were disclosed.

Blurb, a Palo Alto, Calif.-based provider of book publishing services, has raised $2.5 million in debt financing from Hercules Technology Growth Capital. The company is backed by firms like anthem Venture Partners and Canaan Partners. www.blurb.com

ABRY Partners and The Thurston Group have acquired healthcare technology company Companion Technologies Corp. from BlueCross BlueShield of South Carolina. No financial terms were disclosed. www.SouthCarolinaBlues.com

U.S. Auto Parts Network Inc., a Carson, Calif.-based provider of aftermarket auto parts, has set its proposed IPO terms to 10 million common shares being offered between $10 and $12 per share. It plans to trade on the Nasdaq under ticker symbol PRTS, with RBC Capital Markets and Thomas Weisel Partners serving as co-lead underwriters. Oak Investment Partners holds a 30.4% pre-IPO stake. www.usautoparts.net  

Knology Inc. (Nasdaq: KNOL) has agreed to acquire PrairieWave Communications Inc., a Sioux Falls, S.D.-based provider of communications services in South Dakota, Minnesota and Iowa. The deal is valued at approximately $255 million, and is expected to close by June 30. PrairieWave is backed by Alta Communications and Banc of America Capital Investors. www.knology.com www.prairiewave.com

Divergent Capital Partners of Australia has sold its “significant” stake in Visean Information Services, a Houston, Texas-based data management software vendor to the upstream oil & gas industry, to global oilfield services company Weatherford International (NYSE: WFT). No financial terms were disclosed. http://www.divergent.com.au 

Internet and Digital Media Articles of the Day

Filed under: Digital New Media, US Internet, Asia Internet, News — Dave @ 9:38 pm

Gannett, Tribune and McClatchy To Jointly Sell Online Ads Across Properties - The nation’s three largest newspaper publishers are gearing up to sell advertising jointly on their newspapers’ Web sites, believing their survival depends on seizing new online revenue. Gannett Co., McClatchy Co. and Tribune Co. are planning to offer advertisers one-stop shopping for display ads on Internet sites. The goal is to attract big advertisers such as car makers and phone companies that want to reach a nationwide online audience but don’t want the hassle of negotiating ad deals with each company or newspaper.

Media M&A In 2007: Pace to Increase - So says an 8-page PDF report by media investment bank DeSilva & Phillips…the report says that 2006 has turned out to be “not merely strong, but also a year of extraordinary deal-making in both quality and quantity. A dollar volume of $20.5 billion in media transactions makes 2006 the strongest year since 2000, and close in volume even to that year’s total.” And why would 20007 continue this? “The outlook for M&A in 2007 is as good as we’ve ever seen.

Glam.com, Meez Partner For Social Net Avatars - Fashion portal Glam.com has partnered with consumer avatar service Meez.com to power customizable user avatars that can be posted on online profiles, blogs, e-mails, IM accounts, and mobile phones. The avatars can be obtained through Glam’s social networking platform, GlamSpace.

CBS To Air User-Created Video On Superbowl Sunday - CBS Interactive and Youtube are teaming for a campaign that draws on consumer-created content. For the campaign, CBS is asking viewers to post 15-second inspirational messages on YouTube. CBS plans to select at least one video each quarter for broadcast, with the first airing during the day on Feb. 4, Super Bowl Sunday.

Dell Taps BazaarVoice For Consumer Reviews - Computer giant Dell has tapped consumer review technology firm Bazaarvoice to power consumer reviews on its site. The reviews will be hosted on Dell.com, and will cover both Dell products as well as non-Dell peripherals sold on-site. 

2007 Is Year Of Localization - 2007 will be the year of localization for the media business. What exactly does that mean? The closer integration of local products and services into our everyday media consumption. For instance, how useful would it be if your default home page brought daily news and weather and interfaced with your social-networking profile, individual electronic payment services, daily schedule, budgeting, shopping suggestions, email list?

Video Is Future King Of Media - With hundreds of millions of people watching Google’s YouTube and other online video sites, will today’s big-budget Hollywood production become a thing of the past? Big-budget productions will become “a crapshoot” at best, that could either become a hit or a big waste of money. The result is that big media companies will gamble less on blockbusters and distribute more amateur and low-budget content, while taking on a long-tail-oriented revenue stream. 

The Demise of Digital Rights Management - Despite Apple’s announcement today that it’s sold 2 billion songs on iTunes, Digital Rights Management is on the decline. Consumers, in fact, are so frustrated with the restrictive software they’ve sued companies like Apple and Universal Music Group from using DRM on their music, citing antitrust law.

Presidential Candidates Launch Blog Campaigns - The next U.S. presidential election is 22 months in the future, but at least two hopefuls have already started online campaigns. Former Senator John Edwards and former Massachusetts Governor Mitt Romney have both recently started running ads on political blogs. 

Execs Bullish On Meredith Buyout Of Digital Shops - Meredith Corp.’s acquisition of two digital shops likely heralds a wave of similar deals, some industry insiders predicted Wednesday. “There’s no question we’ll be seeing a lot more M&A activity focused on interactive agencies,” said David Clark, a managing director with investment banking firm Jordan, Edmiston Group, Inc

Online Media M&A Volume Up 55% - The number of mergers and acquisitions involving online media companies last year shot to 181 from 117 in 2005, but fewer blockbusters meant a total dollar value 26.3% less than the prior year at $8.9 billion, according to data compiled by The Jordan Edmiston Group

Web Retailers Plan To Upgrade Visuals - Most e-commerce sites intend to boost rich media efforts this year, with a particular focus on high-quality visuals. That’s among the main findings of a report released Wednesday by Internet technology firm Scene7. 

BBC Can Spend $680 Million On M&A, Including Social Networking, But Will It? - That money would have bought them MySpace two years ago…BBC can spend up to $680 million on social networking projects including local and international M&A in the sector, Guardian reports. Though that is very sensationalist: the amount is the money BBC Worldwide, its commercial arm, has at its disposal for expansion, into just about anything it desires, including social networking. The idea is to develop social networks around its main branded shows, like Top Gear and BBC Good Food. Also, BBC’s magazines show there is an appetite for internet communities based around the corporation’s top shows, BBC says.

After eCrush, Hearst Revs Up Digital Moves - Hearst Magazines may have been too cautious in the past when it came to building up its website properties (for instance, the not-so successful strategy with iVillage), but the company is hastily playing catch-up, said the division’s president, Cathleen Black at a breakfast conference in NYC. Hearst is pursuing five goals for the digital arena, AdAge reports. As we reported, Hearst just made one of its bigger digital plays with the acquisition of eCrush.com, an entertainment and community network for teens and young adults. 

comScore Networks Reports Total Non-Travel E-Commerce Spending Reaches $102 Billion in 2006; up 24 Percent Versus 2005 - comScore Networks, a leader in measuring the digital age, today released a report on consumer online non-travel (retail) spending at U.S. sites during 2006, including the holiday season (November 1, 2006 – December 31, 2006). For the full year 2006, online retail spending reached $102.1 billion, marking a 24-percent increase versus 2005. Online holiday e-commerce accounted for $24.6 billion, up 26 percent versus last year.

Harper Collins Invests in NewsStand; To Launch Digital Books Services - Harper Collins (part of News Corp), which has recently made the right noises about digitizing and selling its books catalog online, has invested in the Austin-based electronic editions company NewsStand. As part of the deal, Harper will work with LibreDigital, a division of NewsStand, to “create, market and operate digital services for the publishing industry.”

January 9, 2007

Internet and Digital Media Articles of the Day

Filed under: Digital New Media, US Internet, Asia Internet, News — Dave @ 6:25 pm

Disney.com Revamps With Personalized Content - As expected, Walt Disney Company has unveiled the next phase of its digital offerings–the long-awaited revamped Disney.com Web site. Speaking at the Consumer Electronics Show in Las Vegas yesterday, Bob Iger, president/CEO of Walt Disney Co., said the new Disney.com will allow users to personalize content–including sharing of videos, TV shows, and other Disney video content as well as listening to music, and playing video games.

Comedy Central Kicks Off New Broadband, Web Lineup - Comedy Central is expanding its web presence, adding 11 new original broadband shows and 25 original Web shows in 2007. Among the new broadband shows launching is “The Watch List,” the first series to feature a lineup of exclusively Muslim-American comedians and “Judge Fudge,” another first. It’s a Web series developed from a character in a successful network show, “Drawn Together.”

What Happened to Skype? - eBay Chief Meg Whitman has been widely tipped by industry prognosticators not to make it through the year. One reason, among many, is eBay’s inability to integrate voice over IP provider Skype, which the auctioneer purchased in 2005 for $2.6 billion in cash and stock. At the time, Whitman said, “By combining the two leading e-commerce franchises, eBay and PayPal, with [Skype], we will create an extraordinarily powerful environment for business on the Net.” Whatever its performance targets, Skype certainly isn’t getting much help from eBay, as the two companies still remain more or less mutually exclusive. As Laura Martin, an analyst with Soleil-Media Metrics says, “Strategic questions remain about Skype. It’s still unclear how it benefits the core eBay platform. And monetization [on eBay’s investment] has been slower to occur than we had hoped.”

Citizen Journalism Adds To Media Mix - The Internet public has also shown it has an appetite for user-produced content, in the form of video, blogs or social networking pages. On Web sites like YouTube, MySpace or even CNN, citizen journalism is on such a rapid rise that it may one day change the news business forever. The New York Times and CNN may choose material from a vast pool of user submitted-videos and stories instead of hiring full-time staff. With the rise of the Web, the barrier to entry gets lower and lower everyday.

‘Time’ Marches On to New Web Strategy - It remains to be seen whether Time’s highly touted revolution within the past week – primarily issuing the magazine on Fridays instead of Monday and website relaunch today – will give Google News, Drudge or Digg a run for their money, which are the stated goals of the magazine’s executives. In an age where consumers value the ability to customize their content, especially when it comes to deciding “what the most important news,” a part from the cosmetic changes, Time seems to be standing still by relying on long opinion pieces by the likes of William Kristol, Walter Isaacson, Andrew Sullivan and Michael Kinsley. 

Viacom’s Paramount To Add Movies To iTunes; Catalog Titles Only; Second Studio After Disney - So the WSJ is reporting: Viacom will be brave enough to join Disney on the iTunes store, selling movies from its studio Paramount. But in an effort to not ruffle Wal-Mart and Target’s feathers, the deal will only cover Paramount’s back catalog, including titles such as “Forrest Gump,” “Mission: Impossible” and “The Truman Show.” 

P&G Extends Social Networking To Women’s Health and Entertainment - Major marketers take note, as advertising bellwether Procter & Gamble unveils two social networking sites: one devoted to women and another devoted to making the People’s Choice Awards an everyday event. The packaged goods giant insists that actual advertising on the women’s issues site— Capessa (Latin for “striving to reach a place”)—will be fairly light. The main focus of Capessa, which is the product of a partnership with Yahoo and digital brand builder ZiZo Group, is to mine female consumers’ habits and interests in connection with health and career concerns.

Chernin: News Corp Digital Media Revenues Already Off Charts - News Corp. president and chief operating officer Peter Chernin said Tuesday that he expects his company to exceed its goal of $500 million in digital revenue for the current fiscal year and that online video advertising has the potential to be “the single best (business) story” for media companies in 2007. He also said the digital operations will be profitable for the fiscal year even when including the cost for management retention and amortization, which the company had said would have to be excluded to write black ink.

IAC/InterActiveCorp Planning New Content - IAC/InterActiveCorp Chief Executive Barry Diller, who is best known for organizing a fourth network at Fox that challenged dominant players ABC, CBS, and NBC, said Tuesday that IAC will announce several new content initiatives within the next two to three months. Now is an ideal time to pursue such plans given the rise in use of video online, Diller said. 

Internet and Software Deals of the Day

Filed under: Digital New Media, US Internet, Asia Internet, Software, Fundings — Dave @ 1:44 am

Corrigo Inc., a Wilsonville, Ore.-based provider of on-demand service management solutions, has acquired Aligo Inc., a San Francisco based provider of mobile field service and service management solutions. No financial terms were disclosed. Corrigo has raised over $41 million in VC funding since its 1999 inception, from firms like Asset Management Co., Sierra Ventures, Sycamore Ventures and Staenberg Venture Partners. has raised over $30 million in VC funding since its 1999 inception, from firms like Dolphin Equity Partners, Motorola Ventures, RBC Capital Partners and Thomas Weisel Venture Partners. http://www.corrigo.com/ http://www.aligo.com/Nimsoft, a Redwood City, Calif.-based provider of service-level management solutions, has raised $10.3 million from JMI Equity and Northzone Ventures. It is the company’s first round of institutional funding, despite having been founded in1998. http://www.nimsoft.com/

Enclarity Inc., an Aliso Viejo, Calif.-based information management and analytic software company focused on the healthcare market, has raised $10 million in Series B funding. Bain Capital Ventures led the deal, and was joined by return backer Ignition Partners. www.enclarity.com

Camiant Inc., a Marlborough, Mass.-based provider of policy servers for IP-based multimedia services, has raised $8.1 million in Series C funding from return backers like Matrix Partners and North Bridge Venture Partners. http://www.camaint.com/

Adventure Central, a Denver-based provider of online booking and travel inventory management services for adventure tour operators, has raised $3.5 million in Series B funding. Allegis Capital led the deal, and was joined by return backers Wolf Ventures and Advantage Capital Partners. http://www.adventurecentral.com/

Frantic Films, a Winnipeg, Canada-based visual effects, film and television production company, has raised Cnd$5 million in VC funding from Priveq Capital Funds. The proceeds will be used to fund the growth of all Frantic’s divisions through acquisitions and investment in current operations.

Mobango, a London-based operator of an online and mobile community for cell phone enthusiasts, has raised Euro 2 million in first-round funding from Doughty Hanson Technology Ventures. http://www.mobango.com/

Truphone, a London-based mobile VoIP startup, has raised Gbp12.5 million ($24.5m) in Series A funding. Wellington Partners led the deal, and was joined by Independent News & Media, Burda Digital Ventures and return backer Eden Ventures. http://www.truphone.com/

Discretix Technologies Ltd., an Israel-based provider of embedded security solutions for mobile devices and flash memory, has raised $20 million in third-round funding. Sequoia Capital led the deal, and was joined by return backers Accel Partners, Eurocom Group, Genesis Partners, Jerusalem Global Ventures, Shrem-Fudim-Kelner, Pitango Venture Capital and Poalim Capital Markets. www.discretix.com

Heavy Inc., a New York-based broadband entertainment company, has raised $20 million in Series E funding from Polaris Venture Partners. This space previously reported on a $12.8 million first close, based on a regulatory filing. http://www.heavy.com/

Ketera Technologies Inc., a Santa Clara, Calif.-based provider of on-demand spend management solutions, has raised $14 million in fifth-round funding. DAG Ventures led the deal, and was joined by Teachers’ Private Capital and return backers Concentric Equity Partners, Emergence Capital, Integral Capital, Foundation Capital Partners and Kleiner, Perkins Caulfield and Byers. Ketera has raised around $93 million in total VC funding. http://www.ketera.com/

OpenCloud Ltd., a Cambridge, UK-based provider of application servers to the telecom market, has raised $10.25 million in first-round funding from Advent Venture Partners, No 8 Ventures and Motorola Ventures. http://www.opencloud.com/

Brocade Communications Systems Inc. (Nasdaq: BRCD) has acquired Silverback Systems Inc., a Campbell, Calif.-based provider of network acceleration technologies. No financial terms were disclosed, except that Brocade said that the “cash purchase price is not material to Brocade.” Silverback has raised around $50 million in total VC funding since its 2000 inception, from firms like JPMorgan Partners, Pitango Venture Capital, China Development Industrial Bank, Gemini Capital, Intel Capital, Newbury Ventures, Network Appliance Corp. and US Trust Private Equity. http://www.brocade.com/  http://www.silverbacksystems.com/

Automated Trading Desk, a Mt. Pleasant , S.C.-based provider of electronic trade-execution services, has raised $60 million from Technology Crossover Ventures, in exchange for a minority ownership position. http://www.atdesk.com

Amobee Media Systems Inc., an Israel-based developer of ad-serving solutions for mobile operators, has raised between $15 million and $20 million in second-round funding, according to Globes Online. Globespan Capital Partners was joined by return backers Accel Partners and Sequoia Capital. www.amobee.com

BioPassword Inc., a Issaquah, Wash.–based provider of authentication and anti-fraud software, has raised $11 million in Series C funding. RRE Ventures was joined by return backers Citrix Systems, Ignition Partners and OVP Venture Partners. http://www.biopassword.com/

ChaCha, an Indianapolis-based search startup, has raised $6 million in first-round funding led by Bezos Expeditions, with additional participation from Rod Canion (founding CEO of Compaq) and Jack Gill (partner at Maven Ventures). http://www.chacha.com/

C-nario, a Tel Aviv, Israel-based provider of systems for digital signage networks, has raised $5 million in first-round funding led by Carmel Ventures. http://www.c-nario.com/

Digital Media Group Company Ltd., a Shanghai , China-based operator of digital media networks inside subway systems, has raised an undisclosed amount of Series B funding. Oak Investment Partners led the deal, and was joined by Sierra Ventures and return backers NIF SMBC Ventures and Gobi Partners. www.dmgtv.com

Wallstrip, a New York-based video-blog about the stock market, has raised over $500,000 in seed funding from angels like Fred Wilson, according to NewTeeVee

January 8, 2007

Internet and Digital Media Articles of the Day

Filed under: Digital New Media, US Internet, Asia Internet, News — Dave @ 6:21 pm

Bubble, Bubble, Bubble - The startup ranks are starting to thin. We’ve added three companies to the TechCrunch DeadPool in the last week (Raw Sugar, FilmLoop and Browster). Even Google got into the spirit of things when they shut down Google Answers at the end of the year. And over on the Forum users are asking “Who’s Next?” But this doesn’t mean we’re in a bubble. In fact, I think the exact opposite. I think a few failures are direct evidence that we are not in a bubble and that the private venture markets are actually in the process of letting off a little steam to keep things rational. Story: http://www.techcrunch.com/2007/01/07/bubble-bubble-bubble/ Immigrants Driving Force Behind Tech Start-Ups - Immigrants have become such a driving force behind Internet startups that at least one in four technology and engineering companies launched in the last 10 years had at least one foreign-born founder, according to a study released last week. The report, from researchers at the University of California-Berkeley and Duke University, found that these founders came mostly from India and China, and have helped start hundreds of companies with a combined estimated sales of $50 billion. 

Google Exec Defends “Frienemy” Slur - Are media companies whose content is freely distributed across the Web being held hostage? Google may not be out to create content, but it looks like it wants to force those who do to use its delivery services. Eun has been in charge of getting that ball rolling. His team struck the MTV deal last year that would let AdSense publishers display MTV and other Viacom content on their sites in exchange for a cut of ad revenue. He also got CBS and Universal Music Group to allow their content to be distributed on YouTube for another slice of ad revenue. “Our whole business model is structured around partnering,” Eun says, and he’s right: Google shelled out $780 million Google to its partners last quarter. 

Time.com Adds Blogs, News Feed - Time magazine today is again reinventing itself online, this time by revamping its site to emphasize breaking news and blogs. The latest online iteration of Time–a work-in-progress since the company launched its Pathfinder site in 1994–also strives for a cleaner look to better showcase photography and afford more space for advertisers. 

CNN.com Taps Inform For News Search - CNN.com has tapped Inform Technologies to provide an on-site search engine, which allows users to search other news sources without leaving the CNN site. The service aims to discourage Web users from clicking away from news publishers’ sites to visit search engines like Google and Yahoo.  

Pew: Most Teens Create Social Networking Profiles - Several years ago, social networking sites were all but unknown to the general public, but today the majority of online U.S. teens–55%–have profiles on such sites. MySpace is far and away the leading such site, with 85% of youngsters ages 12-17 reporting they use the service. 

Acclaim Taps IGA for In-Game Ads - Video game publisher Acclaim has partnered with in-game ad firm IGA Worldwide to monetize six massively multiplayer online games with targeted spots. The deal encompasses “BOTS!!,” “9Dragons,” “2Moons,” and “DANCE!” in addition to two as-yet unannounced titles. Prior to signing with IGA, Acclaim had a deal with its competitor, Massive Incorporated, to serve in-game ads into BOTS!!, which has now expired. 

Second Life to Go Open Source - Aiming to take advantage of its already-impressive momentum, San Francisco’s Linden Lab, developer of the Second Life virtual online world, will announce Monday that it is taking the first major step toward opening up its software for the contributions of any interested programmer.

January 5, 2007

Korea

Filed under: Travel, Korea — Dave @ 1:42 pm

Korea is an amazing country (South Korea)!  I have been to South Korea many times but mostly for short business visits from China or the USA.  It has never ceased to amaze me how this small country of appoximately 50 million has become a powerhouse in technology and industrial sectors.  As of this writing, Hyundai is one of the top 6 car companies in the world and Samsung is almost twice the market capitalization of Sony!  LG and Samsung lead the world in mobile innovation and some argue NHN (Naver) is a more advanced search engine than Google, particularly for double byte Asian character sets.  If you want to check out the latest in digital media, mobility or anything in electronics, this is a country to visit. 

A good Korean friend once told me he attributes Korean success to a desire to better their country despite scarce natural resources.  Much like Hong Kong and Singapore, South Korea does not have any natural resources to rely upon for their livelihood (any natural resources in North Korea are unavailable due to their government).  As a small country relative to their Chinese and Japanese neighbors, Koreans must always stay on the bleeding edge to remain competitive.  As such, they can only depend on their human capital: imagination and hard work. 

For those who do not know much about modern world history, South Korea was hardly the Land of the Morning Calm, as it calls itself, for much of the 20th century.  From the Japanese occupation to the Korean War to 1997’s economic crisis, life in South Korea has been mostly difficult and desperate.  However, Korea seems determined to leave its troubles in the old century.  It has entered the 21st century with renewed optimism.  Since being bailed out by the International Monetary Fund in 1997, South Korea’s economy, the 10th largest in the world, is on its way to recovery.  Growth rates are climbing, and new office towers are sprouting throughout Seoul, the country’s modern capital.  Former President Kim Dae Jung, a longtime democratic activist before becoming president in 1998, steered South Korea toward a path of democracy and free trade. In 2000, he was awarded the Nobel Peace Prize for his efforts at thawing relations with North Korea. His successor, Roh Moo-hyun, has pledged to continue Kim’s “sunshine policy” with regard to the North. 

These days, in any good-sized town there are fashionable areas where you can find discos, karaoke bars, coffee shops and stores selling everything from designer clothing to fresh French bread. But in these same towns you can also find the intriguing maze of traditional outdoor markets, where vendors sell dried fish, ginseng and fresh vegetables as they have done for hundreds of years. The country’s age-old search for tranquility lingers in the pockets of traditional culture and unspoiled scenery that remain.

A very mountainous country (about 70% of its land is mountains), Korea may look small on the map, but it is full of wonderful pockets of culture to explore. The capital, Seoul, is easily navigated without a guide — the subway system is very easy to use (and cheap!) and street signs are translated into English.  Outside of the large cities, however, the countryside is best explored with a translator, since most people don’t speak English (although it is widely taught in schools) and signs are only in Korean. 

Seoul

At first glance, Seoul appears to be a sprawling concrete mass of high-rise apartment buildings and modern buildings interspersed with historical treasures. But on closer investigation, the city can be divided into numerous smaller districts with their own distinct character.  The primary landmark is the Han River, which runs east to west and bisects the metropolis. 

seoul18.JPG seoul19.JPG seoul20.JPG

Chongno forms the center to the north, surrounded by five main tourist districts, and there are two other districts of interest to visitors to the south, all of which are easy to access by the convenient and economical subway system.  Very few streets have names, however, and buildings are not always numbered, so the easiest way to find a place is by locating the nearest subway station or landmark.

seoul15.JPG seoul16.JPG seoul17.JPG 

At the heart of Seoul, the Chongno and Kwanghwamun areas have long been considered the political, economic and cultural center of the city. They cover approximately two square kilometers from City Hall Station and Kwanghwamun in the west to Chongno 5-ga and Ulchiro 4-ga Stations in the east. Below are some pictures of City Hall and the surrounding environs:

seoul2.JPG seoul5.JPG seoul4.JPG

Here you will find an astonishing contrast of old and new. Ancient royal palaces and cultural inheritances, such as Doksu, Kyongbuk and Changgyong palaces, the National Museum and Chogyesa Temple, surround the downtown area of Chongno, which bustles with people enjoying movie theaters, stores and restaurants. Chongno and Kyobo bookstores, Lotte Department Store and the Millennium Plaza are all within easy reach. Government offices, embassies, and corporate headquarters are located here. Because the weather can be quite severe in the winter times, Seoul literally has an underbelly of shopping malls beneath the streets.  These range from small malls containing 100+ shops (see picture below) to mega underground malls in areas such as the COEX:

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For those of you not familiar with the South Korean economy, much like Japan, it is dominated by large conglomerates that have businesses in every major facet of the economy.  Companies such as Samsung own the entire semiconductor chain to end consumer devices such as flat panel TVs and cell phones.  They even have an investment bank!  Another company is Lotte.  Originally best known for their department stores, they have all manner of additional services including restaurants, groceries, cinemas, etc.:

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Tapkol and Sajik parks provide respite from the hustle and bustle of the busy streets, and Insadong - a street famous for traditional tea houses, art galleries and antiques–runs north of the district’s main street.  Just south of Chongno is the Namdaemun/Myungdong area, at the Hoehyon and Myungdong Subway stops.  Namdaemun—literally “great south gate”—is the name both of the impressive stone and wood structure which still stands at the center of the intersection, and also of the large market nearby.  Below is a picture I took in the evening of the gate and Korean ginseng sold at a local store: 

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Since 1414, Namdaemun Market has been a lively place where merchants and buyers gather to bargain over a wide variety of goods. Just east of here is the fashion mecca of Myungdong, always full of young people trying on the latest styles. To the south, you can enjoy some green space and take a cable car up to Seoul Tower, or take in the dinner theater at Korea House.

Dongdaemun (“great east gate”) is the district immediately east of Chongno, famous for the Dongdaemun Market where you can buy discounted brand-name items and outdoor wear/equipment. Dongdaemun Stadium is also located in this area. Northeast of Chongno at Hyehwa Station is the Taehangno district, also known as the Broadway of Korea.  Relax in Marronnier Park, where you may see improvised performances for free. Good restaurants and outdoor cafes abound here, and you will even find traditional fortune-teller tents along the street. As the previous site of Seoul National University, this is still a place for youth, as well as those interested in performing arts.

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West of Chongno, the lively university district spreads along the Ehwa University, Shinchon and Hong-ik University subway stations. Shinchon is known for its 24-hour bars, cafes and restaurants, where students (and others) go to chat, dance and eat. The nearby Ehwa Women’s University area is full of jean shops, hairdressers, and clothing stores. By contrast, Hongik University, with painted murals along its walls, has a slightly different feeling. Clothing shops are few, replaced instead by restaurants, nightclubs, rock bars and live cafes. You can experience the Korean underground music culture at small clubs in this area.

Southwest of Chongno, near Samgakji Station, Itaewon is the most Americanized district in Korea, located near the U.S. military base. You can be sure English is spoken here, and you also will find the highest concentration of non-Koreans and Koreans mingling in the street.  American capitalism is rampant throughout South Korea and its still up to debate as to whether its a good or bad thing.  Whenever possible, the stores have been modified to suit local tastes but one can not help but notice a Starbucks, McDonalds, Krispy Kreme and Dunkin Donuts on every street corner!

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After shopping for Western-brand clothing and shoes or for local souvenirs, you can relax in one of the many restaurants and cafes here, which serve both Korean and non-Korean food. And to learn more about the country’s military history, be sure to stop by the War Memorial Museum while you are in Itaewon.

South of the Han River is the Apkujung district, centered around Apkujung Station (Line 3) and exuding youth, fashion and wealth. Known as the most expensive place to buy property in Seoul, it is nicknamed the “Beverly Hills” of Korea, home to exotic cafes, unusual bars and unique fashion. The Hard Rock Cafe and other theme bars are located here and is heavily frequented by business men.  Karaoke bars and the like are a very key part of the after hours life of Korean businessmen.  Lots of drink, fruit and female companionship are available while you do deals! 

On my most recent trip, a very well dressed man came up to me and asked in perfect English if I would be interested in a department store girl.  He said its very common in Korea and then proceeded to explain how he does it all the time he goes to the US.  I told him I had no idea where he shopped in the US but clearly he and I did not share the same shopping habits!

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Nearby the Apkujung district is Chongdong, an area popular for food. A fairly new entertainment and culture center, the Kangnam district—literally “south of the river”—attracts people of all ages. Cafes, restaurants, clubs, music stores and movie theaters flank the wide tree-lined street near Kangnam Station. Don’t come expecting historical sites, but instead come for the stores, fashion and modern atmosphere. Within a few subway stops, you can also visit the COEX Mall, Seoul Sports Complex and the Seoul Arts Center.  Most business people spend the vast majority of their time here as many of the large Korean and multinational corporations have offices in this area.

The Korean Demilitarized Zone (DMZ)

The DMZ is a strip of land running across the Korean Peninsula that serves as a buffer zone between North and South Korea.  The DMZ cuts the Korean Peninsula roughly in half, crossing the 38th parallel on an acute angle, with the west end of the DMZ lying south of the parallel and the east end lying north of it.  It is 248 km (155 miles) long and approximately 4 km (2.5 miles) wide, and is the most heavily armed border in the world. 

The 38th parallel north — which cuts the Korean Peninsula roughly in half — was the original boundary between the U.S.-controlled and Soviet-controlled areas of Korea at the end of World War II. Upon the creation of the Democratic People’s Republic of Korea and the Republic of Korea in 1948, it became a de facto international border and one of the tensest fronts in the Cold War. 

Both the North and the South remained heavily dependent on their sponsor states — the Soviet Union and the United States, respectively — from 1948 through to the outbreak of the Korean War. The conflict, which claimed over 3 million lives and saw the Korean Peninsula effectively divided along ideological lines, commenced in 1950 with a Soviet-sponsored DPRK invasion across the DMZ, and ended in 1953 after Chinese intervention pushed the front of the war back to near the 38th parallel.  In the ceasefire of July 27, 1953, the DMZ was created as each side agreed in the armistice to move their troops back 2,000 meters from the front line, creating a buffer zone four kilometres wide. The Military Demarcation Line (MDL) goes right down the center of the DMZ and indicates exactly where the front was when the agreement was signed. The armistice agreement was never followed by a peace treaty and technically the two Koreas are still at war. 

Large numbers of troops are still stationed along both sides of the line, each side guarding against potential aggression from the other side. The armistice agreement explains exactly how many military personnel and what kind of weapons are allowed in the DMZ itself. Soldiers from both sides do patrols inside the DMZ, but they may not cross the MDL. 

Imjingak  

Imjingak, and sometimes in English called the Imjingak “resort”, is a strange park located on the banks of the Imjin River in the city of Paju, South Korea.  This is the first stop on any tour of the DMZ and typically tourists are aggregated into a much larger bus for transport into the DMZ. 

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The park was built to console those from North Korea who are unable to return to their hometowns, friends and families because of the division of Korea.  The park has many statues and monuments regarding the Korean War.

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Imjingak is where the Freedom Bridge lies. The Freedom bridge does not actually cross the Imjin river, but it is a bridge which was used by refugees from North Korea.  It crosses a stream adjacent to the Imjin river and at the far end contains prayers posted to the wall:

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The Tunnels

Starting on November 15, 1974, South Korea discovered four tunnels leading under the DMZ, by use of water-filled pipes dug vertically into the ground near areas of suspected tunnelling activity. The first of the tunnels is believed to be about 45 meters below surface, with a total length of about 3.5 km, and penetrating over 1 km into the DMZ! When the first tunnel was discovered, it featured electric lines and lamps, and railways and paths for vehicles. The second was discovered on March 19, 1975, and is of similar length and between 50 and 160 meters below ground.  The third tunnel was discovered on October 17, 1978.  Like the previous two, the third tunnel was discovered following a tip-off from a North Korean defector who wanted to prove his authenticity.  This tunnel is about 1,600 meters long and about 150 meters below ground.  The fourth tunnel was discovered on March 3, 1990. It is almost identical in structure to the second and the third tunnel.

The north-south directions of the four tunnels, the fact that they do not branch, the progressively more advanced planning of each one (for example, the third tunnel slopes upward slightly as it progresses southward, so that water does not stagnate), and the orientation of the blasting lines within each one indicate that North Korea dug the tunnels, and that their purpose was for invasion, and not coal mining, as the North claimed upon their discovery (no coal can be found in the tunnels, which are dug through granite, but some of the tunnel walls were at some point painted black to give the appearance of coal). The tunnels are each large enough to permit the passage of an entire division in one hour.

I took a tour of the third tunnel which is only 44 km (or less than 1 hours car drive) from Seoul and was discovered near the armistice village of Panmunjeom.  When you first get there, its apparent that they have made this into a major tourist attraction.  Buses are lined up outside and you are treated to a 5-10 minute video that details the nature of the DMZ and its purpose. 

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There are numerous exhibits including those shown below that detail the history of interactions and tension between North and South Korea.  They include presidential assassination attempts by North Korean agents and as well as their success in blowing up a South Korean airliner on the eve of the Seoul Olympics.  You can also get an opportunity to see a scale model of the entire area and some of the other key parts of the DMZ. 

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No pictures are allowed in the tunnel but I have attached a map below which shows a schematic of the tunnel.  There are a few things that are notable.  First, the tunnels are really small.  Apparently North Koreans are a full 7 inches shorter than their South Korean counterparts - probably due to their lack of food and nutrition.  As such, you have to wear a yellow hard hat and crouch down to get through the tunnel.  The walls are painted black as part of the North Korean deception that they were digging for coal and there are holes in the wall where dynamite is placed to carve out the path.  Finally, at the end of the tunnel the South Koreans have laid barbed wire and installed 3 concrete doors.  These were placed to protect tourists from the potential of North Korean gas attacks!

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Upon your exit from the tunnel, you can peruse the adjoining curios store that will give you an opportunity to buy all sorts of knick-knacks to remind you of your visit.  Some of the most intriguing sovenirs include pieces of barbed wire, DMZ t-shirts and even DMZ rice!

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Villages in the DMZ

Within the DMZ there are two villages: one run by the North and the other by the South. Daeseong-dong, found on the southern side of the DMZ, is a traditional village and strictly controlled by the South Korean government. For instance, one must have ancestral connections to the village in order to live there. These restrictions serve to keep the population of the village very small. In the North, Gijeong-dong, or as it is called in North Korea, Peace Village has only a small caretaker population. Through the armistice agreement the North felt that it should be allowed a town within the borders of the DMZ since the South already had one. UN troops call this Propaganda Village because only a small group of people cleaning and turning on lights reside within the village!!  Although from afar it appears to be a modern village, one can tell with binoculars that there is no glass within the windows of the buildings. In the past, North Korean propaganda was sent out by loudspeaker across to Daeseong-dong for as much as 20 hours a day, and reciprocal pop music and South Korean exhortations blasted back.  These broadcasts ceased by mutual agreement in 2004.

During the 1980s, the South Korean government built a 98.4 meter (328 ft) tall flagpole in Daeseong-dong.  The North Korean government responded by building a taller one — the tallest in the world at 157.5 meters (525 ft) - in Gijeong-dong. The North Korean flag at the top weighs around 270 kg (595 lb) when dry and must be taken down the instant it starts raining, as the tower cannot support its weight when it is wet.  Our tour guide said its takes over 30 minutes to bring the flag down! 

Except in the area around the truce village of Panmunjeom and more recently on the Donghae Bukbu Line on the east coast, people for the most part have not entered the DMZ in the last 50 years.  This has created one of the most well-preserved pieces of land in the world.  Environmentalists hope that if reunification occurs the former DMZ will become a wildlife refuge.  However, there will be significant obstacles to maintaining the site because of the high concentration of land mines across the area.  In fact, we were told land mines litter most of the DMZ and we were told not to wander from the tour bus. 

Dora Observatory

The Dora Observatory was built by the ministry of National Defense on September 8th, 1986.  We could see the Propaganda Village made by North Korea in the DMZ and as far north as the city of Gaesong.  This is the nearest point to North Korea from South Korea.  To get there we crossed the Freedom Bridge which is located about 2 km to the north of Mun-san.  It is the only road that links the south and north at Imjingak.  It was originally the Gyonguei-sun railway bridge and rebuilt into a road bridge.  From the deck, you can see the Propaganda Village and the North and South Korean flag poles.

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When you get to the observation tower you notice that there are rows of binoculars that say for military use only.  Of course nowadays the platform is full of tourists from all over the world shoving 500 won coins into them to see North Korea!  The rules are quite strict as it related to taking photos.  It is strictly forbidden unless it is behind a yellow line as the North Korean soldiers may mistake it for a sniper rifle and shoot an unsuspecting tourist.  Of course, some Chinese tourists took photos at the edge anyway and proceeded to have their cameras confiscated by the soldiers patroling the area.  

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You could also see a massive complex Hyundai is building in North Korea to manufacture kitchenware and other household goods.  Apparently the founder of Hyundai was born in North Korea and is a big proponent of communication and investment in North Korea to bridge the gap between the two sides.  He apparently gave 1,001 cows to North Korea as a gift to the country and had them herded across the DMZ!  His more recent move is to fund a gigantic complex in North Korea that will leverage local labor and bring jobs to the region.  Hyundai executives travel frequently across the DMZ to supervise construction. When Hyundai executives cross over, they receive military escort and cover up their license plates - presumably so locals think they are North Korean military.

Panmunjeom / Joint Security Area (JSA)

Inside the DMZ, near the western coast of the peninsula, is a place called Panmunjeom, home of the Joint Security Area. Here is the only place where North and South connect.  This is a scale model of the JSA located in the 3rd tunnel exhibits:

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There are a number of buildings on both the north and the south side of the MDL, and a few which are built right on top of the MDL. The JSA is the location where all negotiations since 1953 have been held, including a number of statements of Korean solidarity, which have generally amounted to little except a slight decline of tensions. The MDL goes right through the conference rooms, right down the middle of the conference tables where the North Koreans and the United Nations Command (primarily South Koreans and Americans) meet face-to-face.Though generally calm, the DMZ has been the scene of much sabre-rattling between the two Koreas over the years. A number of small skirmishes have occurred within the Joint Security Area since 1953. The Axe Murder Incident in August 1976 involved the attempted chopping down of a poplar tree which resulted in two deaths and Operation Paul Bunyan. Before this time, the soldiers of both sides were permitted to go back and forth across the MDL inside of the JSA. That stopped as a result of this incident.

Another incident occurred later when a Soviet dignitary, who was part of an official trip to the JSA (hosted by the North), ran across the MDL yelling that he wanted to defect. North Korean troops opened fire and chased him across the line. South Korean troops, protecting the defector, fired back and eventually surrounded the North Koreans. One South Korean soldier was killed in the incident. The defector expressed joy in his successful attempt, but was saddened by the loss of life. Since this incident, the North Korean soldiers face one another so defectors cannot come upon them from behind. They are ordered to shoot anyone who attempts to defect before they get to the line.

Tongil (Unification Village)

The Tongil (Unification) Village in the northern area of Civilian Control Line and has 133 families and a total of approximately 500 residents.  The agricultural marketing center here sells local farm produce.  You can taste uncurdled Jangdan bean curd (sundubu), seasoned mountain herbs, maeuntang (hot soup) and so on, which show their notable local color.   

Dorasan Station

Dorason Station is the northernmost international station located over 700 meters from the South boundary line of DMZ.  It is not only a symbolic place of division but also, with the completion of the Gyeong-ui (Seoul-Sinuiju) railroad line connection, a gateway of interchange between the North and South.  This station was built as a symbol of eventual reunification between North and South Korea.  Its symbolism was so striking that the US President, George Bush, joined the South Korean President in giving an inaugural speech.  When completed the rail line will allow South Koreans to travel across Asia and all the way to Paris!

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As a nice souvenir, when you enter the station, you can have a Dorasan immigration stamp put into your passport.  Presumably when the North and South are finally reunified, this stamp allows you to go to North Korea!  I plan on holding off on my visit for any time soon…

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Apparently the North Koreans loved the look of the station, they asked that Hyundai build its North Korean factory to the same specs and designs!  Frankly, I think a factory designed to look like a train station would be strange!            

Internet and Digital Media Articles of Day

Filed under: Digital New Media, US Internet, Asia Internet, News — Dave @ 1:36 pm

Linden Labs Releases Real Numbers for Virtual World - Roughly 1.5 million “unique people” have logged into Second Life at least once (differentiated from the 2.3 million “residents” claimed in the game) and roughly 252,000 people have logged in more than 30 days after their account creation date. Monthly growth in that figure appears to be greater than 20 percent. 

Online Retail Spending Surges To $102B - E-commerce spending in November and December reached $24.6 billion–a 26% increase from last year, according to a new report by comScore. For the entire year, online retail spending soared to $102 billion–up 24% from last year’s $83 billion. iVillage Bows New Health Portal - In a significant expansion, womens’ online network iVillage Thursday unveiled a souped-up new health portal. The site, iVillage Total Health, adds 13 new “condition centers” covering topics ranging from cancer to skin and hair. It also offers new tools for identifying causes of illness symptoms and for a Healthy Living diet program. 

CMOs Look for Blended Agencies for Contemporary Marketing - According to a recent study of senior marketing executives by Evalueserve for Sapient, just over half of Chief Marketing Officers (CMOs) believe that traditional, large advertising agencies are ill-suited to meet online marketing needs. Instead, the majority of senior marketing executives show a strong preference for blended firms - firms with roots in technology that can also offer creative and traditional print expertise. Some Google Advertisers Exit - Google keyword prices are soaring, returns are diminishing and click fraud is still an uncontained problem. So many small-to-midsize advertisers say they plan to do less business with Google than in years past. Some plan to reduce spending significantly. For example, retailer eBags.com, which depends on search engines and shopping-comparison sites to drive traffic to its site, spent between $5 million and $8 million with Google last year, with more than 75% of that figure going to the search giant. Said CEO Peter Cobb, “The Google percentage has got to go down.”

Tracking Anomalies Pervade Web - The Internet is supposed to be the most quantifiable medium, but publishers don’t keep track of users in a uniform manner, creating discrepancies everywhere. Even video can be hard to track. Different video sites have different definitions for what constitutes a viewing. For instance, each click counts as a view at vSocial, a seller of premium video services to businesses, while at Revver–the video site that shares ad revenue with producers–a view is only counted if a user watches an entire clip and an ad that has to be downloaded at the end.  

Major Online Recruiters Look To Buy As Niche Sites; Social Nets Emerge As Competition - In the past six months, visits to the big three online recruiters, Monster, Yahoo’s HotJobs, and CareerBuilder dropped by 23.7 percent, 18.4 percent, and 7.1 percent, respectively, Hitwise reports. The reason, BusinessWeek reports, is the rise of social networks and job sites dedicated to matching employers and job seekers in very specific pockets of the job market – sites where musicians looking for work on cruise ships, for example. To cope, The Big Three have been embarking on series of partnerships with newspaper chains.

Photo Sharing Site BubbleShare Bought By Kaboose For up To $3 Million - Toronto-based online photo sharing site BubbleShare has been bought out by Kaboose, the family focused online media company, also based in Toronto. The price is about $2.25 million upfront and another $0.75 million based on future performance. BubbleShare allows user to upload photos and add voice and video captions to photos. Story: 

Performancing Deal is Off - After much discussion and heartache PayPerPost decided to walk away from the Performancing deal. They listened to their Posties and other Metrics users, dug into the Metrics platform and regretfully found that it wasn’t what they were looking for right now.

Internet and Software Deals of the Day

Filed under: Digital New Media, US Internet, Asia Internet, Software, Fundings — Dave @ 2:02 am

The New York Times Co. has agreed to sell its Broadcast Media Group to Oak Hill Capital Partners for $575 million. The group consists of nine network-affiliated television stations.

Retrevo Inc., a Sunnyvale, Calif.-based consumer electronics search engine, has raised $3.2 million in Series A funding. Norwest Venture Partners led the deal, and was joined by return backer Alloy Ventures. www.retrevo.com

MomJunction.com, a New York-based online community for mothers, has raised $1.5 million in first-round funding from company management and angels like Pat Croce. www.momjunction.com

Icarcos Inc., a developer of hardware and software that creates a geographical database, has sold a minority ownership stake of Athlone Global Security, a private equity firm focused on Israeli homeland security companies. Icaros is based in Maryland, but has R&D facilities in Israel. No financial terms were disclosed. www.athloneglobalsecurity.com

VMIX Media Inc., a San Diego-based online media platform, has raised an undisclosed amount of Series B funding from return backers Mission Ventures and Enterprise Partners. It had raised $5 million in Series A funding in early 2005. www.vmix.com

Goldman Sachs and CanWest Global Communication plan to offer up to Cdn$2.5 billion for Canadian media company Alliance Atlantic Communications Inc., according to The Globe and Mail.

Cisco (Nasdaq: CSCO) has agreed to acquire IronPort Systems Inc., a San Bruno, Calif.-based provider of messaging security appliances, for $830 million in cash and stock. IronPort has raised around $94.4 million in total VC funding since its 2000 inception, from firms like Allegis Capital, Menlo Ventures, Amicus LLC, ChevronTexaco, General Motors, New Enterprise Associates, Rembrandt Venture Partners, Starter Fluid and Western Technology Investment. www.cisco.com www.ironport.com

vJive, a Mumbai, India-based broadband out-of-home media & digital signage network, has closed the initial tranche of a $22.6 million venture funding round led by Matrix Partners India. www.vjive.net

InvenSense Inc., a Santa Clara, Calif.-based provider of motion sensing solutions for mobile and consumer applications, has raised $11 million in Series B funding. Qualcomm Ventures was joined by return backers Artiman Ventures and Partech International. www.invensense.com

Mochila, an online content marketplace, has raised $8 million in new venture capital funding. Charles River Ventures led the deal, and was joined by return backers Mission Ventures, The Greenspun Corp. and Jerry Colonna. www.mochila.com

Next New Networks, a New York-based operator of micro television networks over the Internet, has raised $8 million in Series A funding from Spark Capital. The company is run by co-founder Herb Scannell, former vice chairman of MTV Networks and president of Nickelodeon. www.NextNewNetworks.com

Macrovision Corp. (Nasdaq: MVSN) has acquired Mediabolic Inc., a San Mateo, Calif.–based provider of software solutions for connected consumer electronics devices. The deal is valued at approximately $43.5 million in cash. Mediabolic shareholders include Aurora Ventures, Intel Capital, Spinnaker Ventures and AsiaTech Management. www.macrovision.com www.mediabolic.com

NextWave Wireless Inc. (Nasdaq: WAVEV) has agreed to acquire GO Networks Inc., a Mountain View, Calif.-based developer of mobile Wi-Fi network solutions for service providers looking to deploy on campuses and in municipalities. The deal includes an initial cash payment of $13.3 million, plus up to $25.7 million in possible earnouts that would be paid in NextWave common stock. NextWave also will assume around $7.46 million in existing GO Networks obligations. GO Networks raised a $20 million Series A round in late 2004 at a post-money valuation of approximately $40 million. Backers include Accel Partners, Apax Partners, Israel Seed Partners and Pitango Venture Capital. www.nextwave.com www.go80211.com

Apriori Technologies Inc., a Concord, Mass.-based provider of cost management software for the discrete manufacturing industry, has raised $11.18 million in Series B funding, according to a regulatory filing. Return backers include Bain Capital Ventures and Sigma Partners. www.apriori.com

TutorVista, a San Francisaco-based provider of online tutoring and test preparation, has raised $10.75 million in Series B funding. Lightspeed Venture Partners led the deal with a $7 million contribution, while return backers included Sequoia Capital India and Silicon Valley Bank. www.tutorvista.com

Amazon.com has invested $10 million into Wikia Inc., the for-profit wiki site founded by Wikipedia founder Jimmy Wales. News of the deal was first reported last month, but the actual dollar amount had been kept confidential. Wikia previously had raised $4 million in Series A funding earlier from Bessemer Venture Partners, Omidyar Network and individual investors like Marc Andreessen, Josh Kopelman, Joichi Ito, Mitch Kapor and Ron Conway. www.amazon.com www.wikia.com

Newmerix Corp., a Superior, Colo.-based provider of automated testing and change management software for packaged applications, has raised $7 million in third-round funding. Return backers include Mobius Venture Capital, Siemens Venture Capital and IDG Ventures. www.newmerix.com

DefenSoft Planning Systems, an Israel-based developer of software solutions for planning defense and security systems, has sold a 15% ownership stake to private equity firm Athlone Global Security Inc. The deal also includes an option whereby Athlone could acquire an additional 5 percent. www.defensoft.com www.athloneglobalsecurity.com

DTN Information Services, an Omaha, Neb.-based provider of information services for the agricultural and energy markets, has acquired The Progressive Farmer magazine from Time Inc. No financial terms were disclosed. DTN is a portfolio company of Veronis Suhler Stevenson. www.dtn.com

Hanley Wood Inc., a Washington, D.C.–based B2B media company serving the residential and commercial construction markets, has acquired PRO AV magazine from Ascend Media. No financial terms were disclosed. Hanley Wood is owned by CCMP Capital (f.k.a. JPMorgan Partners), while Ascend Media is backed by CCMP and Veronis Suhler Stevenson. www.hanley-wood.com www.proavmagazine.com

Amdocs (NYSE: DOX) has agreed to acquire SigValue Technologies Inc., an Israel–based provider of real-time billing and network solutions that support converged prepaid and postpaid voice, messaging and data/content services. Amdocs already owns a 14% stake, and will pay approximately $54 million in cash for the remaining 86 percent. Other SigValue shareholders include Holland Ventures and AIG Orion Venture Capital. www.amdocs.com www.sigvalue.com

Browster Inc., a San Francisco-based provider of a browser preview plug-in, is shutting down, according to GigaOm. Company shareholders included Advanced Technology Ventures, First Round Capital, Vanguard Ventures, John Zeisler (Gabriel Venture Partners), Robert Simon (Alta Partners), Rick Magnuson (former Menlo Ventures partner) and Ken Sawyer (Saints VC).

Digg, a San Francisco-based news website that lets users rank stories, has raised $8.5 million in new VC funding from return backers Greylock Partners and Omidyar Network. The news was first reported last week by VentureWire. www.digg.com

CorasWorks Inc., a Reston, Va.-based provider of workplace application software on the Microsoft SharePoint platform, has raised $4 million in second-round funding from Edison.

Minekey Inc., a Sunnyvale, Calif.-based developer of Internet-based personalization and recommendation services, has secured $600,000 of a $3 million Series A round led by New Enterprise Associates, according to a regulatory filing. http://blog.minekey.com

Omneon Video Networks Inc., a Sunnyvale, Calif.-based provider of digital content storage and processing systems for media companies, has filed for a $115 million IPO. It plans to trade on the Nasdaq under ticker symbol OMNE, with JPMorgan serving as sole bookrunner. Shareholders include Norwest Venture Partners, Accel Partners, Advanced Technology Ventures, Invesco Private Capital, Meritech Capital Partners and Lucent Ventures. www.omneon.com

January 4, 2007

Internet and Digital Media Articles of the Day

Filed under: Digital New Media, US Internet, Asia Internet, News — Dave @ 1:31 pm

Music Downloads Hit Unexpected High Last Week - A stronger-than-expected Christmas for music downloads as U.S. digital track sales reached an all-time high last week, with 30.1 units sold, Nielsen SoundScan reports. The increased downloading just before New Year’s represents a 51 percent rise from the 19.9 million digital songs sold during the same weekly period in 2005. Internet Portals Fighting For Relevance - Internet portals are fighting to avoid going the way of ISP portals, with some people arguing that more and more people are customizing their homepage and using search to get where they want (and probably bookmarks as well) so the idea of one site offering everything for everybody is becoming obsolete. Aside from the portals themselves (which are backed by some huge companies, both internet and media) the biggest effect would be on advertisers—if the big portals stop being a one-stop-shop for tens of millions of consumers, they stop being a one-stop-shop for advertisers as well. 

Turner Finds Success With Online Ventures Large And Small - Successful web sites are nothing new to Turner, with internet offerings that include CNN.com; CNNMoney.com (Turner-Time Inc. effort); CartoonNetwork.com; sports sites NASCAR.com, PGA.com and PGATour.com; and others. But the list of Turner efforts from the last 18 months or so is impressive: CNNPipeline, GameTap.com, VeryFunnyAds.com, broadband players LaughLab (TBS) and DramaVision (TNT), ACCSelect, the upcoming SuperDeluxe.com for comedy shorts. Merrill Issues Pessimistic Ad Outlook Overall; Online Still Looking Up - Expect anemic ad spending in 2007, Merrill Lynch says in a report issued today. The forecast by analyst Lauren Rich Finle charts an ad spend rise of 2.9 percent (or, 2.7 percent excluding direct mail) and to lag the U.S. economy’s projected 4.5 percent growth rate. Despite those differences, Merrill views “total consensus” on the outlook for Internet ad spend: the company expects online spending to increase 22.9 percent – an estimate Merrill suggests may be conservative. 

Virgin Digital Closes Music Service; Pushing Napster; Naps Numbers Exceed - Virgin Digital, the digital music service in U.S. from Virgin Group, has closed down after no traction and a rash of management defections over the last year. The site/service now directs to Napster, who will take over the Virgin subscribers. Meanwhile, Napster has increased its guidance: it expects to report more than $28 million in Q4 quarterly revenue and 566,000 paid worldwide subscribers, while it previously expected its Q4 revenues to exceed $27 million. Also, Napster reported that its subscribers downloaded 500 million songs and over 700 million music streams in 2006.

CBS Study Finds More Digital Connections Lead To More Primetime Viewing - It might sound contradictory, but CBS Research has found that individuals who are heavily involved in using digital media are also more likely to watch primetime television. Among the findings: 56 percent of those surveyed were aware that you could watch network television programs by streaming them over the Internet. Also, the segment of the population with both a broadband and a digital television connection at home has grown from 22 percent in the fall of 2005 to over 30 percent this fall. 

In Praise of Ad Networks - This year will be another record-breaker for Web advertising. We’re getting used to hearing that, and we’re also getting used to hearing Google outperform Wall Street’s estimates with more phenomenal search growth. However, there can’t be many more years of outrageous search growth, since there are only so many total Web users and searches they can conduct per day. Enter the ad network. The amount of inventory out there is growing and will continue to grow in a long-tail sort of way. Ad networks have access to an enormous amount of inventory, and can connect advertisers to Web sites they wouldn’t otherwise find. Plus, they’re cheaper.

On Wall Street, Old Media Humbled New in ‘06 - Around this time last year, we were hearing sweeping pronouncements about the imminent demise of big media, but 2006 belonged to the old media firms. As they adjusted, they dipped their toes into new media with smart acquisitions and savvy new strategies. Wall Street responded very favorably, as old media generally posted impressive turnarounds across the board. Disney, News Corp., and Time Warner led the way in 2006, with 44.3%, 34.7% and 26.3% rises respectively. CBS Corp., considered the “old media” arm of the newly split Viacom Corp., rose 22.3%, while the supposedly younger and lighter new Viacom grew a scant 2.5%. Other heavy-hitters in 2006 included cable giant Comcast Corp., whose shares jumped 64.7%, and Dreamworks SKG, which advanced 20.1%.

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