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Missives from a media business geek

Three Wheels on Amazon’s Wagon

How did that old Burt Bacharach song go? - “Three wheels on my wagon, and I’m still rolling along”. That’s the Internet today - we are merrily “singing a happy song” on a network built in the 90’s, operated by for-profit organisations, and being used increasingly for large scale multimedia file transfers.

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In a recent post I wrote …

A study by Nemertes Research predicts that the U.S. Internet of 2015 will be at least 50 times larger than it was in 2006. Internet growth at these levels will require a dramatic expansion of bandwidth, storage, and traffic management capabilities in core, edge, metro, and access networks. It estimates that these changes will entail a total new investment of some $137 billion in the worldwide Internet infrastructure by 2010. In the U.S., currently lagging Asia, the total new network investments will exceed $100 billion by 2012.

As some telcos already feel the pinch and are beginning to block capacity, or ‘traffic manage’, it is clear that the bolts have already been loosened. Like the initiatives on global warming, its time for us to pull the various Governments, technical communities and Corporations, to pull together and develop a coherent and deliverable strategy that will ensure the wings don’t fall off this great network of networks.

Well suffered a major network failure today losing it’s S3 storage service, EC2 and SQS. The failure affected a number of high profile services including . Although it’s the first major failure have suffered it just goes to show that the cloud computing model assumes a reliable network is in place. Without it the model doesn’t fly (or should I say ‘roll’?).

Anyway seems like it could be a very big wagon we are riding not an aeroplane. Three wheels to go.

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Amazon to Acquire Audible.com

audible.png.com, Inc. (NASDAQ:AMZN), has announced that it has reached an agreement to acquire Audible Inc. (NASDAQ:ADBL). provides premium digital spoken word audio content, specializing in digital audio editions of books, newspapers and magazines, television and radio programs and original programming. Through its web sites in the US and UK and alliances in Germany and France, offers over 80,000 programs, including audiobooks from well-known authors such as Stephen King, Thomas Friedman, and Jane Austen, and spoken word audio content from sources including The New York Times, The New Yorker, Fresh Air and Charlie Rose.

offers the best customer experience, the widest content selection and the broadest device compatibility in the industry,” said Steve Kessel, .com’s senior vice president for worldwide digital media. “Working together, we can introduce more innovations and bring this format to an even wider audience.”

“This deal brings together two pioneering companies that share a long history of ceaseless focus on improving the customer experience,” said Donald Katz, founder and chief executive of . “We are very excited to be joining a company as innovative as .com.”

In recent months, has announced a number of innovations in the digital space, including Kindle, a wireless portable reader that provides instant wireless downloads of more than 90,000 books, blogs, magazines and newspapers to a crisp, high-resolution electronic paper display.

Under the terms of the agreement, .com will commence a cash tender offer to purchase all of the outstanding shares of for $11.50 per share and will assume ’s outstanding stock-based awards, for an aggregate transaction value of approximately $300 million which includes ’s cash and short-term investments at closing.

The acquisition is subject to customary closing conditions, including regulatory approvals, and is expected to close by the second quarter of 2008.

Shoring up Kindle perhaps?

Release

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Triggit making content easier to grab

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A two year old company first established to connect wine bloggers to merchants is branching out. is a toolbar that makes it easier for website owners/bloggers to grab content such as images, videos and links, and place it on their pages. It also makes it easier to link a particular product mentioned on a site to a particular merchant who can suppl it - great for affiliates. The Toolbar edit options are very basic, enabling users to add images (), videos (), and a bunch of affiliate links to your site (, , , , , and ). No doubt this functionality will extend with time.

It remains to be seen just how will make any money as a business though. Other than the standard Web2.0 model of relying on vastly inflated valuations and hence an exit, getting users to part with hard earned cash will be difficult. One to watch though.

www.triggit.com

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Amazon to Offer DRM Free Music

.com has announced that DRM-free MP3 music downloads from MUSIC ENTERTAINMENT will be available to customers on MP3, ’s DRM-free MP3 digital music store where every song is playable on virtually any digital music-capable device, including PCs, Macs, iPod, Zune, Zen, iPhone, RAZR and BlackBerry. When is added later this month, MP3 will be the only retailer to offer customers DRM-free MP3s from all four major music labels, as well as over 33,000 independent labels.

 

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“We are excited to offer MP3 customers DRM-free MP3s from , which represents many of the most popular musicians from the past and present,” said Bill Carr, .com Vice President for Digital Music. “Our MP3 customers will be able to choose from a full selection of DRM-free music downloads from all four major labels and over 33,000 independents that they can play on virtually any music-capable device.”

“We are excited to be working with as they continue to build new markets for digital music,” commented Thomas Hesse, President, Global Digital Business & U.S. Sales, MUSIC ENTERTAINMENT. “We are constantly exploring new ways of making our music available to consumers in the physical space, over the Internet and through mobile phones, and this initiative is the newest element of our ongoing campaign to bring our music to fans wherever they happen to be.”

Full Release

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FreeDrive chooses Nirvanix’s platform for Facebook application

today announced that has selected, implemented and now officially launched its service using ’ s Storage Delivery Network, a global online storage platform optimized for media applications. is a personal online storage and file sharing application that works across social networks. With today’ s announcement, is now available first as a application enabling its registered users to host and share photos, videos, music and documents among their existing friends and groups. has exited its beta period with over 100,000 users and is expected to register another one million users conservatively over the next six months.

offers customers 1 GB of free storage that serves as an Internet hard drive while providing online access to files that can then be linked and posted to . Prior to partnering with , hosted, stored and delivered these files in a Tier-1 co-location site on hardware they had to purchase, maintain and service. The costs associated with purchasing storage commensurate to their growth forecasts and managing the storage became prohibitive and stifled the company’ s aggressive expansion plans so looked into other options.

“When we began passing several terabytes of storage, we were faced with the decision whether to continue providing it ourselves or go through an outside vendor,”said Michael Witz, Chairman and Founder of . “Going with an outside provider was more economical and saves us time and energy. We heard about and S3. Going with was a real easy choice. provided a high level of customer service while was more of a ‘do-it-yourself’ proposition. ’ s technology is further along than ’ s with value-added media management tools already built in and an API that worked with our backend. And, providing online storage to outside companies isn’ t exactly ’ s core business focus. We didn’ t want to risk our business on them.”

www.freedrive.com, www.nirvanix.com

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