Category Archives: Innovation

Google buys Feedburner

By PureVC
If you haven’t heard already, Google has purchased Feedburner. Fred Wilson gives some color to the deal on his blog. While terms were not disclosed, Fred admits that his firm made about 3 times its money on the deal. That doesn’t sound like a “homerun” but he clearly outlines how rewarding the investment was for him and his firm in terms of personal satisfaction and in learning about the new media feed world.

This transaction confirms what few prescient VCs have known is the next wave of startups that take advantage of new media. Several years ago no one knew what a widget was or what a feed was. We were all using email and looking at portals and webpages. A very small iteration occurred, and that included the “blog”, the “feed”, and the “community”. In the past few years these have taken off and it remains an undercapitalized investment category simply because a lot of VCs don’t understand the power of this space. Continue reading

Online Video Ads have big growth ahead

A study by Insight Express carried out for Advertising.com (the number one online advertiser) found that news and video streams were the most popular types of content for viewers.

  • News clips were favored by 48% respondents
  • Music videos were preferred by 47%
  • Movie trailers were next with 32%

While ads pay for some of the content that drove streaming growth last year, eMarketer senior analyst David Hallerman believes that the market for streaming ads may have built in limits.

“The current video ad inventory shortages both create higher CPMs and hold back a fuller flourishing of this market”

Last year in June 2006 McKinsey & Co. reported that Internet video ads were 80% sold out in 2005! “Assuming that marketers don’t increase the number of ads they place in each video stream, the maximum supply of video ads is currently about $600 million a year – far less than future demand,” noted McKinsey & Co.

My conclusion is that those new media players, who can make the production of video ads easy, have an opportunity to exploit. Microsoft Movie Maker is the easiest so far. But there is a need for better-effect templates that can make video editing on microsoft platforms easy for the marketing teams of most non-tech savvy companies. And once that is done, the growing presence of established Internet video channels like www.Youtube.com and niche channels like www.MyOrbit.tv (for business) make it easier to reach large or focused audience.

About the  author: Shankar AVSB is the CEO of MyOrbit and actively tracks the online new media markets and advises businesses on how to benefits from the new market developments.

Michael Dell CEO ver 2.0

Michael Dell reclaims Dell CEO throne, Dell 2.0 begins by ZDNet’s Larry Dignan — Michael Dell is CEO again of his namesake company. Kevin Rollins is out. Why? The company is going to have another earnings miss. Dell said it “expects its fourth quarter fiscal year 2007 results to be below the average of First Call estimates for both revenue and earnings per share.” According to Thomson Financial, Dell is projected to report fourth quarter revenue of $15.3 billion and earnings of 32 cents a share. For the year, Dell is expected to report revenue of $58 billion and earnings of $1.17 a share.

Dell’s biggest issue is that its manufacturing prowess isn’t the edge it used to be. And Dell doesn’t spend enough on research and development to truly innovate. As a result, Dell is mired in a commodity hardware game. That game plan was fine when rivals were inefficient, but HP can now squeeze Dell on price. What should Dell do? That’s the topic for a subsequent post on this blog.