(photo: Evil Erin)

Matt Yglesias analyzes the failure of the progressive block strategy, and chalks it up to progressives not picking issues that centrists care about.

He doesn't note his own role in that failure, vilifying the leader of the progressive block Raul Grijalva as the world's greatest monster unless he backs down. (Our own whip effort started to back Grijalva's efforts, which were already underway in the House when we started in June of 2009.)

I've said many times that it's impossible to expect progressive members of Congress to hold together if they don't have the backing of their natural fiscal constituencies the liberal interest groups and the unions. Without that support, they're left to raise money from PACS and other corporate sources to sufficiently fund their campaigns. That's why they take turns championing progressive bills that ultimately fail so they can pretend they do something, and then vote for bad bills that ultimately pass so someone else can be the failed hero. When Tammy Baldwin votes for one PhRMA-friendly bill after another, progressives can say hey, but she's so good on LGBT issues! Which never actually pass either, but the kabuki keeps activists sufficiently docile and donating to large organizations who fundraise off amping up outrage.

But it's also worthy to note that it's hard for them to withstand the assault of liberal pundits who sneeringly derided their efforts as naive, futile and purist. They should be proudly taking credit for their role in delegitimizing progressive opposition to the bill in liberal intellectual circles, much the same role that the same people played during the Iraq war. After all, it's TNR's stock in trade.

I'll leave it to others to analyze how corporate cash was laundered through foundations to underwrite the efforts of various opinion leaders in the health care debate, but it definitely deserves more scrutiny. . .

Monday, June 1, 2009

Kaiser Family Foundation Launches New Non-Profit Health Policy News Service

Menlo Park, CA In the midst of a major federal health reform debate and the ongoing financial turmoil in the media industry, the Kaiser Family Foundation officially launched Kaiser Health News (KHN) today to provide a new source of in-depth reporting on major health issues. KHN is staffed by experienced health policy journalists and editors, and will feature contributions from a wide array of leading health policy commentators and independent journalists.

[]

At the heart of KHN will be in-depth, explanatory stories about complex health policy issues and major developments in Washington, D.C., and around the country in the health care marketplace and health care delivery system. The news service will cover policy stories like health care reform, developments in major public health coverage programs like Medicare and Medicaid, and complicated ongoing policy challenges like the financing of long-term care, and it will examine the nation's health care system from a consumer perspective. KHN will also provide a synthesis of health policy news coverage through a daily health policy report, original programming from Kaiser's broadcast studio, and regular columns from contributing writers and experts. Jonathan Cohn, senior editor of The New Republic, and Howard Gleckman, senior research associate at the Urban Institute and former senior correspondent at Business Week, will be writing bi-weekly columns. Among others who will contribute occasional columns are: Michael Cannon of the Cato Institute, Jim Capretta of the Ethics and Public Policy Center, Judy Feder of the Center for American Progress, and Mark Pauly of the Wharton School at the University of Pennsylvania.

The development of Jonathan Gruber's much-vaunted model, which formed the justification for econo-wonks and politicians alike to support the Senate bill's voodoo claims about the excise tax, was originally paid for by the Kaiser Family Foundation in 1999 according to Gruber. It was given a facelift this year courtesy of the Small Business Majority, whose money comes from foundations including the Blue Cross Blue Shield Foundation. (h/t spanishinquisition)

And recall that Kaiser Permanente was the original sponsor of the Washington Post pay-to-play salons.

You have to wonder if any of that Kaiser cash underwrote other efforts at the Post after the parties fell through.

HCAN's efforts were funded by Atlantic Philanthropies, the Robert Wood Johnson Foundation and George Soros foundations, among others.

So, come on, pundits. Don't let the lameness of progressives in Congress get all the credit for shooting down the public option, rolling back choice, and teeing up constitutional amendments to overturn the health care bill around the country.

Stand proud.

Tags: Blogosphere, Jonathan Gruber, Kaiser Family Foundation, Matt Yglesias, Media, new media, Raul Grijalva, Robert Wood Johnson, The New Republic, TNR, veal pen

Universal Music Group will drop the prices on the majority of its new CD releases to between six and 10 dollars. This plan dubbed the Velocity program will go into effect in the second quarter of this year.

UMG hopes this plan will at least slow the serious decline in CD sales that has been going on since MP3s and other digital music downloads came on the scene.

While UMG has its hands in music downloads and streaming, too, the profit margins are usually better with CDs. UMG claims that its cheaper CD plan will maintain a 25% profit margin.

Up until now, most new CDs have actually been more expensive than their download counterparts. If the price comes down, consumers will be more likely to purchase the goods. It's a simple economic principle. But to try to incentivize music fans even further, UMG plans to load the jewel cases with deluxe content that you won't usually get with online purchases.

We're not going to complain about lower prices. We welcome anything that reduces consumers' expenses. But do you think this will actually make a difference? A couple of us in the Mashable office haven't bought a CD in years if you're the same, will UMG's plan turn you around?

[img credit: lrargarich]

Tags: CD, CDs, digital downloads, music, umg, universal music group

Scientists have created a flat surface patterned after the body hair of spiders that refuses to get wet.

The surface also has the added benefit of being self-cleaning, since water does a pretty good job of picking up and carrying off dirt as it is being repelled.

This makes the material ideal for some food packaging, windows, or solar cellsthat must stay clean to gather sunlight, scientists say. Boat designers might someday coat hulls with it, making boats faster and more efficient.

But what makes the new surface really unique is that unlike other similar products out there, such as shoe wax and car windshield treatments, the new material doesn't rely on chemicals with water-repellent properties to stay dry. Instead, its surface blocks out water by mimicking the shape and patterns of a spider's body hair. In other words, physics, not chemistry, is what keeps it dry.

Spiders "have short hairs and longer hairs, and they vary a lot. And that is what we mimic, said Wolfgang Sigmund, a professor of materials science and engineering at the University of Florida.

It's been long known that spiders use their water-repelling hairs to stay dry or avoid drowning. Water spiders use their hairs to capture air bubbles and tote them underwater to breathe. But it was only five years ago that Sigmund began experimenting with microscopic fibers, turning to spiders for inspiration.

At first, Sigmund's natural tendency was to make all his fibers the same size and distance apart. But he later learned that the pattern of hairs on a spider's body consists of both long and short hairs that are both curved and straight. So he decided to mimic Nature and replicate this random pattern using plastic hairs varying in size but averaging about 600 microns, or millionths of a meter.

Most people that publish in this field always go for these perfect structures, and we are the first to show that the bad ones are the better ones, Sigmund said.

The technique, detailed in the science journal Langmuir, can be applied to keep even absorbent materials like sponges from getting wet. It may also be safer than other forms of water-proofing since the method doesn't involve the use of chemicals.

Sigmund says that he has even developed a variation of the surface that repels oil. However, he noted that the process is not reliable enough to continually create good working surfaces, and different techniques need to be developed to produce such surfaces in commercially available quantities and size.

We are at the very beginning, Sigmund said. But there is a lot of interest from industry, because our surface is the first one that relies only on surface features and can repel hot water, cold water, and if we change the chemistry both oil and water.

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Scherillo v. Dun & Bradstreet, Inc., 2010 WL 537805 (E.D.N.Y. Feb. 17, 2010)

I teach my Cyberspace Law students that the most effective online contract formation process is a "mandatory non-leaky clickthrough agreement":

* mandatory = the user cannot proceed to the destination without going through a screen soliciting their consent to the user agreement.
* non-leaky = there are no alternative ways the user can reach the destination. I realize this is redundant with "mandatory," but I remind students that a seemingly mandatory process can have leaks. For example, if customer support representatives will manually set up user accounts occasionally, the mandatory online process has become leaky because now a few users reached the destination without consenting to the agreement.
* clickthrough = the user manifests assent to the contract by clicking, and the user is told that the click signifies assent.

There are other ways to form online contracts (e.g., email exchanges), but if executed properly, the mandatory non-leaky clickthrough process should do very well against contract formation challenges. But even this description leaves open a number of user interaction judgments. Does likelihood of contract formation vary if:

* the agreement terms are presented on the clickthrough page itself or are only available for review by hyperlink?
* the agreement terms are presented in a scrollbox? If a scrollbox is used, must the user be forced to scroll through the scrollbox?
* the user is asked to check an additional box, such as a certification that the user has read the agreement?

In all of these cases, I believe the contract should be properly formed whether the answer to these questions is yes or no. However, I'm now a fan of adding a bonus mandatory checkbox as part of the formation process after reading today's opinion. A user mounts a sophisticated challenge to a mandatory non-leaky clickthrough process, and the bonus mandatory checkbox helps squelch the challenge. I think the court would have enforced it without the checkbox, but it sure put the user in an awkward/untenable position.

Scherillo bought a financial report about a company from Dun & Bradstreet's Small Business Solutions website. Scherillo alleges that the report painted an overly rosy picture of the company, leading him to make bad investment decisions that cost him money when the company tanked. Scherillo wants D&B to cover his investment losses.

Scherillo is almost certain to lose on the merits. Indeed, this case brought to mind one of the earliest cyberlaw cases, Daniel v. Dow Jones, 520 N.Y.S. 2d 334 (N.Y.C. Civ. Ct. Spec. Term 1987). (This case is a fun read--see how the court discusses electronic networked communications almost a quarter-century ago). That case involved Dow Jones' publication of an ambiguous report via a dial-up online service that led the plaintiff to make a bad investment decision. The court said that any tort claim for publishing inaccurate information required the plaintiff to show that it had a "special relationship" (analogous to a fiduciary relationship) with the information vendor, and an ordinary customer-vendor relationship did not qualify as a special relationship.

Interestingly, D&B would rather hear the case in NJ rather than keep it in NY and hope to benefit from substantive NY law that surely would doom Scherillo's case. (Perhaps NJ has a similar law). To move the case to NJ, D&B invoked the venue selection clause in its user agreement. Let's look at the online contract formation process. The court says:

"since 2007, the SBS website has included a page that requires users to register before purchasing a Dun and Bradstreet product ("the registration page"). On the registration page, users input information, including their e-mail address and name. The bottom quarter to third of the page contains a scrollable text box with the title "Terms and Conditions" [which contained a mandatory venue selection clause designating NJ]. Directly below this text box there is more text that reads: "I have read and AGREE to the terms and conditions shown above." Immediately adjacent to this text is a much smaller, empty box ("the terms and conditions check box"). Also at the bottom of the page is another box containing the phrase "Complete Registration" ("the Complete Registration box"). Clicking on this box completes the user's registration. McDonald testified that if a user clicks on the Complete Registration box without checking the terms and conditions check box, the user is unable to complete registration and is returned to the registration page."

Check out the page yourself as I saw it in Google Chrome on Feb. 18 (with cropping). The formation process looks pretty standard to me.

Scherillo attacked the formation process by saying he never consented to the agreement because "it was possible for him to unknowingly and involuntarily 'check' the terms and conditions check box." Not only that, he lined up Sean Chumura, "a cyberwarfare and computer forensics expert" who is also [LINK NSFW] helping Perfect 10 in its lawsuit against Google, to testify that "it was possible for plaintiff, while 'tabbing' through the registration page, to inadvertently hit the space bar and thereby 'check' the terms and conditions box."

[Snarky paragraph alert] First, this may prove the adage that you can find an expert to testify about ANYTHING. Second, Scherillo alleged $75k of investment losses. For a low-value lawsuit like that, he needs a cyberwarfare expert??? Third, I believe Chumura has a MySpace page. Really...? I wonder if he uses an AOL.com email address too. The MySpace page also reveals that its author appeared to attend the Dan Quayle school of spelling.

OK, back to the case. The judge was no more tolerant of this nonsense than I am. He resolves the factual dispute by saying:

even under plaintiff's theory--that, while "tabbing" through the fields on the registration page, he accidentally hit the space bar key and thereby "checked" the terms and conditions box--plaintiff would have seen the check mark appear in the box and then still would have had to hit the "return" key (or clicked the "complete registration" box with the mouse) to complete the registration and advance to the next screen. Plaintiff would have had an opportunity to see that he checked the box inadvertently before he then hit the return key on the "complete registration" box. Thus, to accept plaintiff's theory, the Court would have to find that plaintiff hit two keys accidentally-the space bar and the return key-and that he was then involuntarily and unexpectedly sent to the next screen where he nonetheless proceeded to enter his credit card information and complete the purchase of the report. This alleged chain of events is simply not credible.

Therefore, Scherillo's click on the "Complete Registration" box manifested Scherillo's assent to the terms, even if Scherillo chose not to review them. The court says that the fact that the terms were in a scrollbox is immaterial, and the fact that some sites require the user to scroll through the scrollbox before proceeding doesn't affect the effectiveness of D&B's implementation.

I believe this court would have upheld the formation process even without the bonus checkbox, but you can see how the checkbox defused the withering assault of a cyberwarfare expert. Thus, you might consider implementing the bonus checkbox to discourage similar silly attacks against your contract formation process in the future.

With each new milestone in technological evolution we've seen a company emerge as the clear leader. In the current landscape, we observe this happening in several key parts of the marketplace including networking, search and operating systems.

Cloud computing is a new disruptive force that makes us ask the question whether we'll see the future of the cloud dominated by a single company. In this multi-part series, we'll take a look at a handful companies and envision what the world might look like, if, in fact, they win it all. We'll also analyze what it will take for a new company to rise up and claim the leadership role in this chapter of computing.

Sponsor

Dominance Happens: A Bit of Recent History

There has been a love/hate relationship with companies that dominate markets. On one hand, it's us consumers that make it happen. But when they become giants we cheer as governement regulators and competitors knock them down.

Microsoft has faced this issue perhaps more than any company in the past few decades. When the browser battles were in full swing in the late 1990s, Microsoft was taken to court by the Department of Justice for antitrust violations.

In this note released in 2000 - Technology, Market Changes, and Antitrust Enforcement -Microsoft evaluated the idea of whether it was consistent with public welfare for a company to "win" a technology market, and what it means to have a network effect in technology.

Microsoft makes the point that no technology company will hold a dominant position for long if it doesn't innovate and expand the market definition. Additionally, if a company doesn't find the right balance of trust and pricing between its customers new technologies will find a way into the market and cause customers to defect.

Point: A Dominant Vendor Will Emerge in the Cloud

Taking these factors into consideration, we believe there are several points that can support the argument that a dominant player in cloud computing in the future. Due to the nature of market forces a single vendor will emerge as the clear leader in offering cloud solutions.

• First mover advantage: We're already seeing amazing things happen at first-movers like Amazon that are defining product and pricing. This gives them an advantage in fueling further growth and by learning and iterating the solutions in the market. Being first in an infrastructure-driven business will help them reach scale that others just can not reach easily - and potentially price it where others can't match.
• Vendor lock: Once you get started with an infrastructure provider it becomes interwoven into business operations. By the current nature of the cloud (e.g. little standards, a lot of innovation) being first with leading solutions adds more momentum to the first-mover that wins strategic customers.
• Strategic synergies: When we look at the combination of cloud computing and collaboration, we see a natural fit in services that meet more needs and take more market share. It may just work out that bundling works also in the cloud and creates the network effect that Microsoft is famous for. Cisco is also partnering across the landscape, with a focus on preparing the network for the cloud. By making it easier to manage your cloud with Cisco gear, it will provide IT leaders a reason to expand their relationships today, and stay tomorrow.
• Acquisitions and Partnerships: Companies that buy their way into the market will be a big factor in putting momentum behind their offerings. Companies to watch: VMware, Cisco, Oracle. These companies are already showing that the race is on to win the cloud through aggregation of capabilities. Cisco has a blog dedicated to Cloud Computing, Oracle is going on tour sharing its ambitions for the cloud

Counterpoint: A Dominant Company Will Not Emerge in the Cloud

Perhaps no single organization will have the ability to create a dominant foundation in cloud computing. Instead, we'll see many types of solutions as equal peers in the market.

In a way, this runs against the grain of existing technology landscape and our history with successful innovations. Maybe that is why we love the idea of the cloud itself?

• It's too big to own: One big reason to doubt a single dominant force in the cloud is that it feels like owning the Internet. Even Cisco with its strengths can't make such a claim. Perhaps the cloud is the perfect market, where the barriers of entry are low enough that continual evolution will occur.
• It's a movement, not a layer: Another argument against the cloud having a dominant player is its fuzzy definition. There are many parts and pieces to it, and it's not clear today what it would mean to "win" the cloud computing market.
• Portability will keep vendors in check: If customers demand solutions where they can move from vendor to vendor freely, it will impact the landscape. Companies with cloud solutions in the marketplace could be required by these customers to remove barriers to moving data and services between different entities. Additionally, standards and best practices may emerge that allow companies and individuals to move freely between providers. In this world, it will become a fluid market that prevents vendor lock and promotes pricing and trust as brand differentiators.

A Glimpse at Potential Futures

We've compiled a list of companies worth reviewing as candidates as possible dominant players in cloud computing. We'll be looking at their brand and the available assets that could be leveraged to achieve this position. Finally, we'll take a fresh look at what it might feel like if they succeed and shape the brave new world of cloud computing.

The list of candidates we're analyzing includes: Google, Microsoft, Apple, VMware, IBM, HP, Cisco, Amazon, Salesforce, Facebook, and our favorite, Insert new startup to our list by adding a comment below.

Please let us know what you hopes and fears are with the cloud computing marketplace. Any companies we should we add to our list (or remove)? What's your take: Is there one company today that is best positioned to win the cloud?

Photo credit: reddodo & savingfutures

Facebook users in the American West appear to move around a lot, and often have friends throughout the country, while users from Minnesota to Manhattan have connections much closer to home.

And in areas in and around Texas, on the edge of what's generally thought of as the Bible Belt, the Dallas Cowboys rank higher overall on users' fan pages than God.

These are just some of the interesting findings about Facebook users recently discovered by Pete Warden, a Colorado-based, British-born ex-Apple engineer who has spent the last six months gathering and analyzing data from more than 215 million public Facebook profile pages.

What he's discovered just might shed more light on the culture of connected America than the 2010 census.

"If you actually look at [Facebook user data] in the aggregate, it's like a painting," Warden told TechNewsDaily. "Each individual data point isn't interesting, but when you step back and look at the trends in millions of profiles, you start to see some pretty interesting pictures emerging."

Warden says he's been overwhelmed by the response he's gotten from this project, after working on similar projects in obscurity for years.

Among Warden's less surprising findings: Fox News host Glen Beck gets the number one spot on Facebook fan pages from users in Eastern Idaho. And the "Twilight" books, penned by Mormon author Stephenie Meyer, rank high in the heavily Mormon communities in and around Utah.

Facebook mining

These and other observations that Warden mined from the massive amount of Facebook data were posted on his blog last week, along with maps that break down the U.S. into seven regions based on Facebook user trends.

Now, after gathering the data from Facebook's site using software he designed and honed in the process, and making a first round of enticing observations, he wants to turn the raw data he's culled over to academia for further analysis. But he also hopes to steer investors and customers to his own software and services for further data gathering and aggregation.

"I'm much better at building the pipeline for processing the data than I am at doing really rigorous stuff with the results that come out at the end," Warden said in a telephone interview. "The patterns that I've blogged about in the U.S. data are very qualitative."

Indeed, much of the conclusions that Warden has drawn are open to interpretation, and his given names for America's regional social connection groups "Stayathomia" (the Northeast), "Socalistan" (Souther California), and "Mormonia" (the predominantly Mormon towns in Utah and Eastern Idaho) among them are playfully clever, but not very scientific.

Serious about privacy

But Warden is serious when it comes to people's privacy concerns, even though all the data being gathered is publicly available on Facebook's site, and can be found via Google. He says he wants to make the data useful for large-scale data analysis, but not for tracking down individuals.

"We want to make sure we don't help scammers, we don't help spammers, and we respect people's privacy," Warden said, "but also allow some sort of new insight to come out of this."

To that end, Warden has delayed releasing the data for the time being (he initially intended to release it yesterday, Feb. 9), after someone from Facebook contacted him, asking for some time to check the privacy implications.

Once Facebook clears the data for release to the academic world, Warden says he's ready to pass the task of interpreting all this data on to others and feature their conclusions on his blog more often than his own.

Meanwhile, Warden has some problems to patch in his data pipe, problems that have been helpfully pointed out by readers of his blog.

"One of the great things about getting this out there is having thousands of pairs of eyes to look over this stuff, like the fact that [the data shows] the top name in Alexandria, Louisiana is Mohamed," Warden said.

"When somebody pointed out that some of the profiles seemed to be coming from Alexandria, Egypt, that was a head-slapping moment."

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We Americans like to think of ourselves as trendsetters for the rest of the globe, but when it comes to cell phones, we're still playing catch-up with countries such as Japan and Korea.

In general, Asians use their cell phones in more robust ways than the typical U.S. resident as TVs, wallets, GPS devices, and music players. Japanese cell phones can double as a house key, a credit card, and an ID. Users can even use their cell phones to send their vital signs straight to their doctors.

In recent years, U.S. companies have made baby steps toward incorporating more advanced cell phone features, particularly in the areas of mobile banking and video broadcast. Meantime, the Asian cell phone market continues to be a good predictor of features that could soon be included in American cell phones. For example, Japan had cameraenabled cell phones two years before Americans ever went gaga for them.

Curtis Schenck, a manager of corporate relations at NTT DoCoMo USA, gave TechNewsDaily the scoop on the hottest features in the Japanese market right now. Try not to be too jealous.

1. Personal Butler

Customers don't have to Google for information, since i-Concierge acts as their butlers or personal assistants and caters to their every need. Users can input their food preferences, neighborhoods they like, and entertainments that they enjoy. When new information is downloaded into the system, they get push notifications that are based on their preferences. For example, if they like Thai food and a new Thai restaurant that is opening nearby, their cell phones will notify them.

2. Investigative Visits

This takes the Verizon commercials to a whole new level. If a users' five-bar reception signal drops to three bars or if they have a dropped call, they can call customer service and a team will be sent out to investigate the problem.

3. Barcode Reader

Japanese phones can read QR marks, which are sophisticated barcodes for businesses. If an Asian cell phone user is walking down a Tokyo street and walks past a restaurant that isn't open, they can point their camera to the QR mark and their phone's browser will automatically be routed to the restaurant's Web site.

4. Free TV on the Phone

Subscribers can surf 13 free TV channels on their phones. DoCoMo has also launched their own channel called BTV to air programs that are filmed specifically for the mobile phone.

5. Phones as Payment Systems

Osaifu Keitai, also known as the mobile phone wallet, lets users load up credit card information onto their phones. If stores have a reader, users can swipe their phones over it to pay for their purchases. Cell phones can also be used to pay for subway and train tickets.

6. Send Money to Other Subscribers

Some Asian countries allow users to send money using their cell phones. Users simply input another person's phone number and the amount they owe them and like magic, the money is transferred.

7. Internal Wi-Fi Spot

Japanese cell phone users can download a movie onto their mobile phones and show it on their TVs. This is another way to get entertainment on demand. A femtocell base transceiver station (BTS) in the home hooks up mobile phones to the DoCoMo network through a broadband line such as an optical fiber. The femtocell BTS lets a person with a cell phone download videos and music files. Through femtocell BTS, a person can set up a private wireless network for their home appliances, entertainment systems, and other devices.

8. Home Security Service

Japanese cell phone users can lock their doors and manage their home security systems remotely using their mobile devices. They can also adjust appliances and set environmental controls, so their lights and heat can be switched on before they get home.

9. Environmental Awareness

DoCoMo has deployed environmental sensors throughout Japan and people are now able to monitor air quality, temperature, and UV rays around them using their cell phones.

10. Reads Vital Signs

In the same way that we might plug headphones into our iPhones, Japanese cell phone users can plug in equipment such as a blood pressure monitor to their phones and send vital signs directly to their doctors. This helps save some people a trip to the doctor.

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Credit card usage is slowing. Revolving credit largely made up of credit card debt fell by nearly 20% in November, the largest drop on record, according to the Federal Reserve, reflecting less borrowing by consumers and banks' tighter lending standards. Through October, the number of new credit card accounts was down 46% from the same period in 2008, according to Equifax.

But abandoning credit cards is a much more radical step than using them less. Consumers who don't own a credit card often have a hard time renting a car. Some hotels won't book rooms to travelers who want to pay with a debit card or cash. Those that accept debit cards may place a hold on several hundred dollars in the customer's bank account, which could cause checks to bounce. And many consumer experts say that responsible use of credit cards is one of the most effective ways to build a good credit record.

It will be interesting to see what the long term implications of this will be, because I sense a lot of people now run with the baseline perception that banks and credit card companies exist only to screw their customers.

Bloomberg News

Apple intends to stay nimble on pricing of the iPad, possibly lowering prices if the newly unveiled tablet device fails to gain traction among consumers.

That was just one of the items in a note out Sunday night from Credit Suisse recounting meetings with Apple executives. Perhaps unsurprisingly, the Apple officials who met with CS analyst Bill Shope seemed to downplay the potential for some cannibalization of other Apple lines, which analysts have noted.

Apple wants the iPad to be the best device for a few key use cases. For instance, the company believes it could eventually be seen as superior to both handheld and notebook devices for browsing the Internet, using the App Store, and consuming mobile media (video, photos, and e-books). Nevertheless, in other areas, notebooks, the iPhone, or an iPod may be more appropriate. This clear segmentation of capabilities suggests that cannibalization may be less of a concern than most currently believe.

Shope also wrote that despite the seemingly aggressive pricing of the iPad the lower-than-expected price points range from $499 to $829 Apple seemed to indicate it would respond with price cuts if demand for the device wasn't revving up the way it liked. While it remains to be seen how much traction the iPad gets initially, management noted that it will remain nimble (pricing could change if the company is not attracting as many customers as anticipated), Shope wrote.

Apple shares are up about 0.5%. On the year, they're down a bit less than 7%. And since the iPad was introduced on Jan. 27, shares are down about 5.5%.

Today, the other key part of the equation has just gone live in the App Store, the PAYware Mobile app. This free application, when paired with the hardware, allows you to use your iPhone to easily accept credit card payments, just as Square does. Still, as Dorsey noted in the original video we took with him (second video below), Square is being aimed at a broader market of people who may not have merchant accounts but still wish to be able to accept payments. Also, while VeriFone's hardware is clearly better designed for use with the actual iPhone, Square's method of using the headphone jack is so that it will be able to be used with other mobile devices eventually (Square is currently working on an Android app, for example). VeriFone promises support for other platforms as well, but this particular hardware unit will only work with an iPhone 3G or iPhone 3GS.

VeriFone also clearly believes its solution is the safer bet for merchants thanks to its secure payment gateway. Truth be told, running transactions on this device does feel a bit safer than Square's, but there are also a range of confusing options. And setting the thing up is kind of a pain. You're also paying for this extra security. VeriFone's solution has a $49 activation fee, along with a monthly fee of $15 on top of the 17 cents you're paying on each transaction. Square gives its hardware and accounts away for free, but plans to take a small percentage of each transaction. This will be an interesting battle to watch.

Watch a quick demo of VeriFone PAYware Mobile in the video below. You can order the hardware here. And you can find the app in the App Store here.

The iPad is not the transformational device so many Apple enthusiasts were hoping for. It won't turn all the content industries upside down, it won't be your primary computing device, and it's not even a bigger, better iPhone.

Apple CEO Steve Jobs introduced the iPad as a device to fill the gap between smartphones like the iPhone and high-end laptops like the MacBook and MacBook Pro. He said there needs to be a middle device, but it needs to be better than the alternatives at what it does. Netbooks currently fill the void, but according to Jobs, netbooks aren't better at anything. He and his colleagues at Apple believe that the iPad is.

Apple's website and promotional video call the iPad magical. We're told the iPad is the best way to experience the web, email, photos, and videos. Hands down. But it's not it's not even close. It's mighty cool, it's super convenient, and it's very sexy, but it's not even better than a netbook at some of those things.

This isn't the middle device folks have been waiting for because and I'm using Steve Jobs's own criteria here it's not better at anything than any other device on the market. It's a step in that direction, but the day hasn't come yet. Here are just a few of the ways the iPad isn't as magical as Apple claims.

It's Not the Best Way to Browse the Web

Steve Jobs said it needs to be a better web device than the alternatives. The Apple website says it's the best way to experience the web. Some variation of that phrase is repeated several times in the promotional video Apple has released. But it's just not true.

It might be one of the best ways to browse the web on a mobile device, but laptop and desktop computers even netbooks are still better. Most current websites were designed to be experienced on those devices with a mouse and a keyboard. Maybe the mouse isn't necessary, but you don't have to pop up a software keyboard to type in URLs on a netbook or laptop. Even if you lug around the keyboard dock, it will be a tad awkward moving between the keys and the screen to interact. You're sacrificing some usability for simplicity on the iPad.

Most importantly, the iPad's browser does not support Adobe Flash, the foundation of rich media on the web today. Adobe is planning to make it possible for Flash developers to develop apps, but it won't work on the web.

I'll admit that the decision not to support Flash is a logical one if you start at the right premises; Flash is responsible for countless reported crashes on Macs, and Apple can't control it to ensure quality of experience. Apple is banking on a transition to HTML5 and CSS 3 for rich web content. While that transition has already begun, it hasn't fully happened yet. Until it does, it's ridiculous to call this device the best way to experience the web when one of the most ubiquitous and essential web technologies is not supported.

It's an Unprecedented Win for Closed Computing

Many of the software restrictions that drive people mad when they're using the iPhone are going to be just as frustrating on the iPad. All the device's content apps, songs, TV shows, movies, books, you name it can only be processed through Apple's iTunes Store.

You won't be able to drag and drop or share files with other computers like you can with your laptop on your home network. You won't be able to download a program or music file from the web and play it on the spot. You won't be able to use any application that doesn't meet Apple's strict approval guidelines. It's closed computing at its most extreme.

Unfortunately we've come to expect that from our smartphones. For a larger device that's supposed to replace your netbook as a complete portable computing solution, though, this is almost unprecedented at least from a device that's likely to have a great deal of influence on the market and on the design of future devices. That's bad news no matter how you spin it.

It's Not Really a Competitive eReader

The Kindle owns the eReader landscape right now, and the greatest expectation for the iPad was that it would bury the Kindle. While the iPad's reader interface is indisputably sweet-looking and the list of participating publishers is promising, there are several ways it just won't beat the Kindle.

The most important issue is the price. The Kindle costs $260; so do Barnes & Noble's Nook and the comparable Sony Reader. The Kindle even comes bundled with free 3G network access, though it admittedly can't do anywhere near as much with it as the iPad can.

But if you are considering the iPad primarily as a reader, that price difference is a big problem. Also a big problem: The lack of an e-ink display. E-ink doesn't wash your face in eye-strain-inducing light like the displays on the iPhone, the iPad, and laptop computers do. It's meant to be a soft experience, just like reading a book. Without e-ink, you might not be able to tolerate spending four straight hours reading Stephen King's latest on a regular display, cool IPS tech aside.

Finally, as impressive as 10 hours of battery life is for a multi-purpose device like the iPad, the Kindle can run in reading mode for a week without recharging longer if Wi-Fi is disabled. Because it's trying to do everything, the iPad isn't the best at anything.

It's Not Worth It If You Have a Smartphone and Laptop

If the iPad isn't a good option as a middle device, it ought to at least be attractive to power users and enthusiasts who already have other devices. Unfortunately, it's not.

It's not significantly better at anything than either your iPhone or your MacBook. It can't be used as your daily workhorse computer on the go, because just like the iPhone's OS 3.1.2 the iPad's OS 3.2 doesn't multitask. And if you already have an iPhone, you can do basic information gathering, mapping, and so on while you're on the go without spending an additional $29.99 per month for 3G service.

Further, your laptop or netbook very likely has a web cam for video conferencing, and your cell phone probably has a camera (or even video camera) for capturing images. The iPad has neither.

Since the interface is graceful and satisfying, you might want to buy it as an extra device just for the experience, but at between $499 $829, that's not practical for most consumers.

The Anti-Hype

The iPad isn't going to be a phenomenon with either netbook users or power users. It's not better than existing devices at anything, and it's too expensive for most people to use it as a secondary device. I might have said something different if the rumors that the iPad would be all about a new push in the content marketplace were true, but that didn't happen. Instead, we got a cool toy.

Tags: apple, Apple Tablet, ereader, ipad, Kindle, Opinion

Only a very small portion of the Moon's southern limb will be in the Earth's umbral shadow, but there will be a noticeable darkening visible over the Moon's face at the point of greatest eclipse. Need more? Then know this eclipse is the one of four lunar eclipses in a short-lived series. The lunar year series repeats after 12 lunations or 354 days. Afterwards it will begin shifting back about 10 days in sequential years. Because of the date change, the Earth's shadow will be about 11 degrees west in sequential events.

For the eclipse, the duration of the partial phase will last within two seconds of a hour long, while the penumbral duration from beginning to end will run about four hours and eleven minutes. Penumbral contact will begin at 17:17:08 UT and umbral contact at 18:52:43 UT. The moment of greatest depth of shadow will occur at 19:22:39 UT, 31 December 2009.

Link -via Geeks Are Sexy

(image credit: Kostian Iftica)

Quite possibly in popular vernacular or in the agency world, yes. I'm not sure that people have meant to do it but it is happening.

comScore released a small set of data from a survey that they performed about holiday this year online. Not surprisingly, it is up compared to previous years. The surprise comes in the form of how this data is displayed in a Social Media Influence table.

I think somebody pulled up in a semi truck loaded with hype.

Or, maybe, it is that the respondents now identify social media simply as talking with friends. Have a look at the table:

At face value, 28% of online Holiday shopping being influenced by social media is believable and insanely large number. Good for all those social media experts out there! But looking a the rest of the data in the chart, which covers every major form of social media Twitter, Facebook, Facebook Fan Pages, Blogs and generic status updates, something is missing.

Did the respondents want to feel cool by responding yes to this? Were all the respondents extremely dialed in to social media? Does standing around the water cooler talking about Lego sets equate as social media?

I raise these questions because the subsequent percentages that have taken this type of action based on social media doesn't add up to me. I fancy myself a stats guy but these numbers sound like they are missing something from this public release. It sounds like a lot of hype.

It may not be, and I am not doubting that comScore performed a valuable and accurate survey. I'm just not sure that this data is being represented to its fullest due to missing information. Or a cultural shift to think of word-of-mouth as social media.

Does this sound accurate to you?

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Is Social Media Taking Over Word of Mouth? is a post from: TechStartups.com

I have been loathe to write this post due to the nature of the subject matter but feel I must for a few reasons.

Over the last week and especially the past few days many of you have probably become aware of Roger Avary the twitterer.

You know, the guy that is tweeting from the big house as he serves 1 year in prison to pay his debt to society for vehicular manslaughter.

There is debate as to whether it is really Avary tweeting to share his prison experience or if it is one of his friends. I'm sure that will shake out in the future and we can either roil in disgust and awe that he shared this experience or be flattened when we find out that it was a sham. Either way, at this point it doesn't matter.

What does matter is that the story of a convicted man is being played out on Twitter. Even if it is simply his likeness being played by a friend and the tweets are fabricated it is no less engrossing. It is also provoking us to ask if we would do the same in his position?

The emotions that are moved by this situation are plenty. More people than will every admit have driven while intoxicated. Everyone can imagine themselves in the shoes of the grieving family that lost a loved one in the tragedy that landed Avary in prison. And finally, Americans love prison shows on television and crime novels. Think Shawshank Redemption but now on Twitter in real-time.

It is like a prison house diary released one sentence at a time. The inherent drama of a man in peril moves the story along as he seeks to fit into a new culture that he himself has only written about in movie scripts.

My personal abhorrence to Mr. Avary's crime forced me to immediately unfollow his Twitter account after deciding to follow. However his story this story, that is going on right now is significant for the changes that it represents in our culture. It is a base desire to be curious about that which we don't yet know. And as those outside the prison walls can now see in through real-time updates we should strive to teach from it, not just be entertained by it.

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Avary In The Aviary A Burden of Real-Time is a post from: TechStartups.com

I am a huge fan of unconventional problem solving and taking approaches to situations that aren't populist. Doing so often requires inspiration from another source unrelated to the matter at hand.

Finding that inspiration is as easy as looking around for a place to stand that you have never stood before. A simple change in perspective is all that it can take to trigger something within you.

.

Example: A Place To Stand

About twice a year I to get some inspiration I stand in a different place online. Since I spend most of my time in front of a computer and the ambient transiency in my space is pretty static I'll stand on the corner of internet and Jeff Bridges dot com and visit his latest posts.

Bridges' website is an exercise in the basics of human communication with static images and image map links to other content but the simplicity is amazingly effective. Why? Because the web has come become a complicated mess of information and displays that vie for attention while Bridges keeps it simple. The site is art.

The effectiveness is deduction of distilling a message down to a graphic is reminiscent of something that Madison Avenue creatives would crank out for a print campaign. With simple copy in the images that he creates they're easier to grasp than a Tweet. The visual tapestry that Bridges creates is linear like a blog, textured like a painting and conversive like asking your grandmother about her past.

What Bridges has done with his personal site is so far from the norm that it has taken me nearly 250 words to describe. I should have done it with an image instead!

Whether you are planning your next startup, in the middle of one or looking to do a site redesign it is helpful to find the right sources of inspiration. Often they are at the very edges of your comfort zone and occasionally just beyond it. Let them gestate and the assimilate them when the time is right.

Photo credit: Screen shot from www.jeffbridges.com

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How To Get Inspired is a post from: TechStartups.com

Friend, smart dude and all-around good guy Micah Baldwin wrote up a post yesterday that hurt me a little bit quite a bit, if I must be honest. It bothers me because he's right.

On every account of where the failure to find funding comes from us, me, you he's right. Whether it's not searching in the right spot, pitching the wrong story, a flawed product or the inability to get over ones self-importance, the blame can go to one person, you.

Let's break this down . . .

I want to focus on one section from the post and give it a bit more fleshing out for those that might need it. This is especially important for those that are preparing to go out for funding the first time.

If you are struggling to raise money, look back at the decision points:

1. Does your idea excite the people you are talking to;
2. Do you excite the people you are talking to;
3. Are you talking to the right' people (not the easy' or big name' people)?

Three

I'd like to speak to them in a new order with number 3 being first. This is the hardest one to get right and the most important. Being enamored by the big name' will only lead to heart break and misery when the big name' investors tell you no. That no could be for one of a million reasons but most likely number 1 or 2.

The right people are those that don't already have portfolio of companies that can do what you are looking to do, they could be someone that you strike up a conversation with at a conference or the seat next to you on a plane.

Believe me on this from when I went through it, the people I should have focused on pitching were right in front of my face and asked for more of my time. I was too enamored with big names and brands to see these opportunities.

The right people also don't have to be early investors in other up and coming startups. There are plenty of investors in the fringe that might be able to help even more. It is a matter of finding them.

One

On the account of number 1, Does your idea excite the people your are talking to? It must if you've gotten your foot through the door. If you haven't haven't, don't be disheartened with a quick no from a potential investor. They are respecting your time by not wasting it.

To maintain this excitement, prepare like you have never prepared before. Take the time to analyze your business, role play your presentation and be certain to understand the investor you are pitching. If a friend helped to put you in this position, ask them for some advice. Cover your bases.

Two

On the account of number 2, Do you excite the people you are talking to? The answer is really up to you. If you get number one right and convey the passion that you have for the startup then the answer is yes. If you get elements of number one right but not all of them, you'll definitely lose points. Those points could cost you the funding and more importantly a future relationship with the potential investor.

Conclusion

Micah's post is brilliant. Any entrepreneur that is looking to raise capital should study, answer all of the questions he asks and fill in any other missing components that they see fit. It is a blue print for how to be a digital hustler and mean it.

Now that I think about it, there is another set of guidelines that combined with Micah's thoughts could be the ultimate startup cocktail Mike Dunn's Tech Due Diligence. That is a cocktail worth whipping up.

Photo credit: (cc) Kenneth Yeung www.thelettertwo.com

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The Right Investor and You is a post from: TechStartups.com

As startups enter the marketplace they are often looking for early adopters and evangelists for their product. A great way to get users on board is to create a developer community around the core product. A developer community is more involved than typical community creation.

A typical community is created through early access in a alpha or beta stage. Requests are made of the early adopters to give feedback on the product through message boards, email or most recently services like GetSatisfaction. It is the norm for these types of communities to focus on putting out fires due to outtages or product redesign. A developer community is different.

Developer community is a vessel of evangelism, product roadmap and pool of potential employees.

Here's how to create and groom a developer community:

1. It needs to be a win

The first thing to do is to understand what motivates a developer. There are plenty of things but the esoteric problem solving is at the top of that list.

2. Treat the developers like rock stars

Go above and beyond to make sure that developers feel appreciated and reward them with contests, prizes, full code examples in a few languages and complete documentation. Also, let them see inside your company and work with your staff.

3. Allow them to create the next big thing

This pays two dividends to developers credibility and monetary. Developers can advance in their career by developing apps around your product or create job stability for themselves think legacy products. Enough said on this one.

4. Grooming

During this stage there are two things that are important: a staff member(s) dedicated to supporting the community and continuing to quench their desire to be best problem solver in room. On the latter, they often they are, so keep feeding them challenges.

A successful developer program depends on the amount of effort that your business puts into it. The yield of the program depends on it. Sun Microsystems and Intel are two great examples of engaged and active developer communities.

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Grooming a Developer Community is a post from: TechStartups.com

This conversation about the next web and putting content up for sale through exclusivity has been a hot button issue for the last few days and worth some more thought. Notice I said, exclusivity' and I'm not calling it scarcity because it's not. Nor am I calling it a paywall'.

Paywall' being the prevailing label for this shift as media companies and independent publishers attempt to stay afloat and producing content by opening their doors to those that have paid admission. I will occasionally refer to it as such. I will also refer to it as patronage.

Like the arts or the movement to support local business, publishers of all stripes need revenue to produce content from information they have. If that revenue comes from their public supporters, so be it.

As an example, we pay admission to movies, concerts and meetups because we have an understanding that if we don't there won't be any more of them. Theaters would go away. Bands would lose their main source of income. Meetups would disappear or be held in some nerd's basement with room for five people and a big OSHA FAIL.

The value that we find in the art of entertainment or having a few drinks with friends that share our common interests is measured first by the price of admission. It is measured second by the amount of pleasure we receive from the information, conversations and moving images.

Information is art. Information is a common interest. Businesses that are in information verticals require patronage.

Does this mean that all information needs to be paid for? Yes. Paid for by you? No.

There needs to be balance in the argument that content and information want to be free. They can be free to consumers, but someone has to pay for them. Whether is through advertising dollars, paid partnership or subscription fees, the production of the content from information is a cost. Content wants to be syndicated, not free.

Those that argue that content wants to be free can have their cake and eat it too if the places that they choose to get it from are covering the costs of production or aggregation. And in this case it is free to consumers if the business at the end point is covering its operating costs with advertising dollars, lead generation or other model.

But if the content is direct to consumers, patronage is the only way to guarantee that even a small portion of it will exist in a few years. Else, you should get used to content solely full of information about the stars you pay to see on stage and screen.

Photo Credit: http://www.flickr.com/photos/lolololori/ / CC BY-SA 2.0

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Content Wants To Be Syndicated, Not Free. is a post from: TechStartups.com

Anyone making the leap into the tech startup world should be asking themselves this question. The answer is it depends.

What should I make a tech startup? It depends on the type of tech startup that you are about to enter. If they are funded (if so, what round are they chasing next). What are your salary needs? What does the cap table look like?

Most likely you will be offered a salary and equity in the company at some level of stock and the cap table will set the value.

So let's start with what a cap table is. It is short for capitalization table. It's a document that lists the securities that startup has made available to all investors in the form of stock (preferred and common), notes and options. This table will tell you what your options would be worth at your time of signing on.

Based on this table you will be given a strike price by the startup as to what the options are worth when you sign on and when you would be able to purchase them. This varies by the stage of the startup and what round of funding they may be chasing.

Your biggest concerns when negotiating compensation with a startup are:

1. When I asked to see the cap table did the founder let me see it?
2. Is there going to be a corporate restructuring that will dilute my options?

Number one is easy to figure out. If you asked to see the cap table and the startup founders deliver, it will be easier for you to prepare your discussion about the amount of options you require to meet your compensation needs. If they won't give you access or will only let you see a partial table . . . run.

If the founders are not being straight up with you at this early stage it is time to move on. No matter what the opportunity, you should consider this a red flag about honesty and transparency within the organization.

The only reason for it to be hidden is that you haven't been told the truth at some stage of the courtship to join the startup. Meaning there may be more investors than you are led to believe, big' investors might not be so big in the pool or simply that the founders are jerks and you shouldn't work for them.

Number two is a question that is going to be hard to get an answer for from most startups. Unless you are dealing with season entrepreneurs or joining a late stage startup you are most likely in for some sort of corporate restructuring that can and will often cause a dilution of your options. Early stage startups won't be able to answer this question with the right answer . . . no.

One example restructuring would be: A startup incorporates and operates in the home state of the founders. They do this for a year or two and decide with the help of investors to dissolve the corporation in the home state and re-incorporate in a more business friendly state like Delaware.

At this point the founders will need to create new stock options and given the opportunity to create a greater capitalization based on a higher valuation (because they've been operating for a few years) they create more stock, lots of it. Typically this lowers your percentage of ownership or might even make your shares a lower class.

Keep in mind that a cap table is only one component of figuring out what you should be compensated for your work. There are other factors like the hours you'll keep, office vs. telecommute, experience, etc. that can make up for any difference in salary. However, there isn't much that can make up for a lack of transparency.

P.S. Back to number two If your startup restructures the corporate entity and doesn't attach a cap table as an exhibit to a contract they would like your signature on as agreement that you understand your 2% ownership is now .005% ownership, don't sign it and run . . . fast.

What Should I Make At A Tech Startup? is a post from: TechStartups.com

Yo SEM, I'm really happy for you and Imma let you finish, but organic SEO had the best results for startups this year.

So your new startup app is killer and you are going to need to get traffic to it. You don't feel like adding SEM to your burn and you want earn traffic from the people searching for your product. Go organic and do it smart.

You might know the list below by heart, but let's make it rote. You deserve traffic. Earn it by remembering to do the basics.

Here are 5 of the best organic SEO quick tips for startups.

1. URL Structure Before you ever build a page know what you are going to use for URL paths. Whether they are rewrites (see #2) or direct to files. From alpha, beta and full release get these pages indexed and maintain this structure.

2. Use URL Rewrites Will save you a ton of headaches if you decide to modify #1. Don't modify #1 and you'll be fine. But just in case you can then use the original URL structure to 301 or 302 redirect to to the new structure.

3. Page Titles Sort this out while you are working on #1. Know what you want your page titles to be from day one of actual development.

4. Auto Discovery I won't add to this list creating an RSS feed because you won't forget that. What you need is to make sure that you have placed the auto discovery tags in the header of ALL pages with feeds. That includes adding dynamic auto discovery if you have search or tag generated pages. Example, <link rel="alternate" type="application/rss+xml" title="TechStartups.com RSS Feed" href="http://www.techstartups.com/feed/" />

5. Keywords Know your vertical(s) beyond what is in front of your face on a daily basis. Use Google's AdWords tool to help you find keywords and search terms outside your sphere that can bring you traffic. In the beginning, spread the widest net that you can. Worry about creating a better funnel once you have more traffic.

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Best Organic SEO Quick Tips for Startups is a post from: TechStartups.com

Disclaimer: I have founded several startups but none that have taken on VC funding, seed or angel investments. Not that I didn't try for the one that needed it to grow. For six months earlier this year, without success, a business partner and myself gave it our best shot, traveling around the country chasing dollars.

Save yourself some from agony and travel that befell us and read Mark Suster's great post over at The SiliconAngle today about VC funding your startup. The post is titled, Beware of VC Seagulls, and goes well beyond smart money vs. dumb money. After a couple of the phone calls we took with VC's we should have known that meeting face to face would only confirm our suspicions about their character.

Here's a sample from the first paragraph:

This is part of my ongoing series Startup Advice. I write this post as a warning to pick your VC's carefully. I like to say to first-time entrepreneurs, picking a VC is more permanent than marriage. If you pick the wrong spouse at least you can get divorced.

Suster shares great information in this post about his previous experience in startups (his) and with VC's (of which he is now one).

I highly recommend this post and the others so far in his series of Startup Advice and his blog Both Sides of the Table [Feed].

Photo credit: (cc) Kenneth Yeung www.thelettertwo.com

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Shhh . . . Mark Suster Is Speaking About VC's is a post from: TechStartups.com

Are you a VIP? Did you pay for access?

These are the questions that will drive the next web, the version beyond 2.0. A trend towards exclusivity is one that appears to be gaining momentum as business models are coming apart at the seams.

The most prominent of these business models, revenue by CPM from advertising dollars, was the first to begin unraveling over last few years. As the economy tanked many sites relying on this revenue stream couldn't afford to keep the lights on.

Those that have survived are looking to premium content to supplement their income or even stay afloat. Premium meaning exclusive pay for content. And as the great Janis Joplin sang, Exclusive's just another word for nothing left to lose.

That's close right?

Don't take my tone the wrong way. I am bullish about the next web and view exclusivity as a viable method to generate revenue that can sustain a business. Many publishers, for years, played the hunch that simply building audience would lead to revenue. Much in the form of advertising dollars and we can see where that has put them. They're ready to earn.

I recently spoke with Tim Bourquin, the founder of New Media Expo. Tim was a leader in creating a community from the diaspora of global podcasters. But as Tim found out, along with others, there was no sustainable revenue stream to produce your own content. If someone wanted to make money in the medium they would need to produce shows for other people.

This is the category that I fall into. For the last 5 years I have been podcasting a free show at the rate on average of 2 episodes a week. We've done over 500 episodes and are the proud owners of an artist page in iTunes. Over that time, all but one month, I paid $200 for the server to host the show. Simple math will put my costs of production over $10,000. And that doesn't include the time to produce the shows, gear or facility (though it was my home).

We were never able to monetize our show with an audience of over 2,500 regular listeners. We looked at advertising, sponsorships and pitching our show for television. None of them were viable as our audience was too small. It was filled with the right people, just not enough of them. The only money that I have made from podcasting came from performing contract work for advertising agencies.

Bourquin is now charging for his content and building a community from and exclusive set listeners that are paying him with their attentions as well. It does change the dynamic as a publisher to have a financial obligation to an audience. In this model, every player has a vested interest in the content having value.

Exclusive purple ropes are a coming necessity for online businesses to grow from the passions of artists, publishers and regular folks. The next web will be filled with independent publishers mixing their content with that of today's mainstream media.

The difference will be that it will be paid for. Think exclusivity through micropayments and the bundling of content like a cable television provider under the umbrella of larger publishers. Both of these models rely on the new web's ability to syndicate and track content effectively.

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The web is a wonderful place. It's got something for everyone. And it has become increasingly social due to new tools that connect our online and offline lives. Think Facebook and Twitter's abilities to move messages between the web and mobile phones.

With this connectivity there is a massive amount of information being created that allows us to find others interested in the same topics. Simply by using these services your own ideas, passions and causes spill out in the public eye.

The intersection of your media, by sharing, allows you connect to more people. That's a given, right? But it also allows you to be a teacher.

Yes, it's 99% Noise

We all know that most of what is shared online, especially via social networks is crap. It is a bunch of noise about going, doing and just did. Inside of this insidious sharing that we do, however, are some amazing insights, lessons and knowledge that wouldn't be captured without the services and electronic connectivity.

In a given day, our experiences lead us to create messages, content, that formerly would have been lost in the ether. Or, it would have been crammed away in some recess our minds and assimilated into our behavior, speech or thought processes.

Yes, 1% is Good

But that 1% that you didn't tuck away or forget to deliver ad nauseam can become the one message that helps those connected with you more than you expected or could have known the impact of.

This percentage claim I would also stake to academia. Name more than one time that you sat in a classroom and didn't have to filter out instructor bias, wheezing, indecipherable accent, bad hair, uncomfortable seat or delightfully appealing classmate. Distractions exist everywhere and online they are amplified, but no different than what one faces in a classroom.

By participating online, you are leading (up to you what direction that is) and by association you are teaching throughout the day. Professors and instructional designers call this associative learning.

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Amazon clarifies Kindle book-deletion policy, can still delete books originally appeared on Engadget on Thu, 01 Oct 2009 14:27:00 EST. Please see our terms for use of feeds.

Getting started with the site is quite easy, because Outright has recently partnered with a number of financial services: you can import invoices from Freshbooks, receipts from Shoeboxed, your PayPal transaction history, as well as your credit card transactions through a deal with Expensify, which supports 94% of US credit cards. You only have to do this once once you've linked your account, they'll keep automatically updating until you unlink them.

Once you're done with the initial setup, everything on Outright is fairly self-explanatory (which is sort of the idea). The home screen presents you with a chart pitting your costs against your income to give you an at-a-glance look at your business's health. At the top of the screen you'll see tabs for Income, Expenses, Taxes, and Reports, where you can hone in on the transactions you're looking for. Transactions are automatically sorted into different categories (for example, the site knows that your airline's tickets belong under the Travel' category), and you can also generate reports on a per-customer basis, which would be helpful for eBay sellers. Beyond that the application helps with taxes by offering reminders when a deadline is coming up and an estimated amount that you'll have to pay.

Outright isn't as robust as some other financial services out there, but if you're looking to keep things simple it's certainly worth a look. The company was formerly called GoBoostrap.com, but changed its name in conjunction with news of its $2 million funding in February.

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This isn't the first time I've noticed things online disappearing over time. My first two years of blogging are gone. Some of that was backed up by the wayback machine.

I've seen other people's blogs, or other online items go away too. Hey, quick, find some of your Tweets from just four months ago. They are all still online, but you probably can't find them. Me neither.

Or, wait until you are hacked and don't have a backup, like happened with me. I love the folks who say you should have backed up. How do you back up everything you do online? You can't. Quick, back up all your Google Docs, your Tweets, your Flickr photos and all the metadata surrounding them (comments, tags, etc), your Facebook items, etc etc. You will die trying.

I know, I've been backing up like a crazy man lately since I got hacked. What's funny is one of my brand new hard drives died. Luckily I had a backup of that. But what if I didn't?

What if my house burned down tonight? I wouldn't be able to save everything. Heck, I'd be worried about getting my family out and screw the hard drives.

So our online lives leak away.

It gets worse after you die.

You think your family will be able to save your Flickr photos? Not if you don't give them your passwords. Here's why: they won't be able to find them.

I let my Flickr Pro account lapse cause I was too lazy to put in a new credit card. I couldn't even find my old photos. Why? Because Flickr's search only shows the last few photos and they turn off the calendar and all sorts of things if you stop paying for the pro account. Yowza.

Reminds me of an interview I had with Jeremy Toeman who built a new company called Legacy Locker. But now we need to put enough cash in there to keep Flickr accounts paid up so my sons will be able to see their photos after I die.

Some best practices I've learned:

1. If you care that it stays around, use services from big companies. Google will probably stick around for a while. Twittergram? Gone.

2. Put your stuff in multiple places. Why? Because maybe Yahoo will decide to turn off the Flickr service in 10 years. So, make sure your photos go to other services.

3. Back up what you can, but that won't help long term. Quick, if your dad handed you a hard drive with 10,000 photos would you be able to find anything on there? What if you got that hard drive in 30 years? Would you be able to even look at what's on it? Remember, when I was in college my entire life was on floppy disks. I can't even read those now.

4. Print out stuff that you really want to save. I still have my trunk of photos from my childhood, but lots of my photos taken digitally over the years are gone or hard to find.

5. Use services like Legacy Locker to ensure that your kids at least will have your passwords and rights to your stuff and accounts.

Any other best practices?

eBay may have sold the majority of Skype earlier this month, but that may not matter if the two original founders of Skype get their way. They have just sued eBay and Skype's new investors for damages that they estimate total a rate of more than $75 million daily.

The case pits eBay against Joltid, which is owned by Skype's founders Janus Friis and Niklas Zennstrom. The issue is around a core piece of peer-to-peer technology utilized in Skype. Joltid seems to have the rights to it and has been seeking to yank the code since at least March. Now, they have filed an injunction and are seeking damages in U.S. District Court.

The lawsuit cites eBay, Silver Lake Partners, and its investment partners, who combined own the popular peer-to-peer calling service. The potential damages cited by the lawsuit are stunning, though. They claim that eBay's altering and misuse of their code could total to more than $75 million per day in damages, as each download of Skype is considered by them to be copyright infringement. If you do the math, that's over $27 billion per year. How they came up with that extraordinary number we cannot even begin to comprehend.

Apparently this is not all that unusual for the Skype founders, according to The New York Times, who reports that they've developed a reputation for litigation, stemming from three lawsuits they filed against an investment banker who represented them in the original Skype sale to eBay.

Tags: ebay, Skype

Last month, we brought you the story of how 15 year-old Dustin Simantob used the iPhone's Find my iPhone feature to catch the thieves that had stolen it. The feature, powered by MobileMe, lets you track down your stolen iPhone via GPS, change the home screen message, and even wipe your phone's content.

If Simantob's story hasn't convinced you to activate Find My iPhone, maybe this one will. An unidentified victim was robbed at gunpoint by two men at 1 A.M. in Shadyside, PA. They demanded and took his wallet, PIN numbers, and his iPhone. It's a sad but all-too-common story, until you get to the part where the man's iPhone helped police arrest the suspects.

According to the Pittsburgh Post-Gazette, the two men, Bryant Rather and Brent Ray Potter, were caught with a third associate, Myron Knox, after the unidentified man used his computer to locate his iPhone at a Wal-Mart in another suburb.

The men, after using his stolen credit card to purchase items, then moved on to a restaurant and then to a gas station, where police detained them and charged them with access device fraud, conspiracy, receiving stolen property, possessing instruments of crime, as well as robbery for the two men who committed the original crime.

With GPS technology becoming more and more prevalent, we're hoping to hear more of these stories, and that they will make crooks think twice before committing robbery or a more serious crime. Find My iPhone is just the beginning of a new technology wave that helps us fight back.

Tags: apple, find my iphone, gps, iphone, Mobile 2.0, mobileme

Neale S. Godfrey, author of the book Money Doesn't Grow On Trees, writes: "Kids don't get it if you don't talk about." Mr. Godfrey is talking to people like me, and if I don't start listening, I'm going to have a big problem on my hands. My four year old daughter is a born shopper. And, as the Co-Founder of a company fighting everyday to bring sensible saving back into the public consciousness after decades of absence, I often worry that I enable her in the very habits I'm encouraging SmartyPig customers to break.

Like most couples these days, my wife, Sara, and I have been engaging in serious discussions regarding money. How we spend money. How we save money. How we use credit. We are pretty normal in that these conversations, while productive, aren't all that much fun. That said, we force ourselves to sit down and talk about money and we are pretty diligent about maintaining healthy attitudes about spending and saving. But when it comes to how we use money with regard to our daughter, all common sense flies out the window.

Our daughter has a piggy bank. And while it's our pocket change that goes into it, she understands the value of what we put in it and that she is rewarded when it fills up. We also require that she perform simple tasks around the house for which, when a series of days are filled in as "complete," she gets a reward. If she plays her cards right, does as she's told, and is patient, she usually ends up with a "treat" every few weeks or so. Problem is she never stops wanting or asking for the most trivial things, and we end up like this episode of Dr. Phil - indulging her whims, rather than being responsible parents who model fiscal fitness.

I tell my wife, "It has to stop." Then I tell her again the next time and the next. But I'm just as guilty as she is. From my perspective, these little treats are almost immediately disregarded and considered "junk." If I sound frustrated, it's because I am. Our unplanned spending on small gifts for our daughter has gotten totally out of control. But it's easier to just go with it than to say no. Who doesn't want a smile and the baby blues? But what are we doing to her as a result? What kind of habits are we teaching her? Every other aspect of her life is meticulously dissected. We are completely focused on turning this healthy, intelligent, productive kid into a healthy, intelligent, productive adult. Why can't we be the same when it comes to teaching her about money?

A recent issue of Better Homes & Gardens offered us three easy tips to begin the process of taking control:

1. Don't Forget Who's In Charge - Marketing machine or not - and good God if there isn't a Disney princess on everything! - You can say "no."
2. Talk About Spending Decisions - Don't lie and say, "I can't afford it." Explain priorities - even to four-year-olds.
3. Hand Some Over - Give your kids the power. Let them make the transaction. Let them see the difference between need and want.

So, can Sara and I do this? Do we need a chart that we make an "X" on every day we don't wimp out and take the easy road? From time to time, I'm going to let you know how it's going. And, of course, time will tell. We at SmartyPig are spending a lot of time these days discussing money and children and families. And while I pride myself on being a good listener, this is one conversation I'd really like to begin truly contributing to.

And I'd like you all to contribute as well. I'd love any tips you might have or anecdotes about your successes or failures in teaching your kids smart savings habits, just send them here jgaskell(at)smartypig(dot)com. We may even feature your ideas or stories on our blog. Thanks!

This is one post/chapter in a serialized book called Startup 101. For the introduction and table of contents, please click here.

There comes a time for every venture when the owners have to decide whether hockey-stick-like growth is feasible or not. In your initial plan, you indicated a sudden surge in revenue at a certain point in time, i.e. where the hockey stick shows up. You have now reached that point. You may have a great business, but will it hit the big time?

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You need to make an honest, clear-eyed assessment at this stage. You might spend money in the hope of achieving that growth and end up losing everything, which would be a big shame if your business was profitable and growing at normal rates (and therefore valuable). On the other hand, forgoing a chance at the big time just because you are too nervous would be equally unfortunate. How do you navigate this complex decision?

Understand Your Investor's Agenda

If you go for growth and miss your numbers and have to raise more money, your investor will get hurt a bit and you will get hurt a lot. The investor can put in more money, and they will do it on harsh terms if they have to because you have missed your numbers. You may end up with nothing at the end of the day while the investor will get their money back plus some.

If you don't know how that works, look up and understand Liquidation Preference. Your contract with the VC will have a Liquidation Preference clause. It is a perfectly reasonable term (although there are egregious variants), but it can really hurt you under certain circumstances. Basically, your view of risk and your VC's view of risk are different.

Let's look at a simple case. Let's say your VC invested $3 million for a 30% equity share and has a 5% Liquidation Preference (quite reasonable -- not one of those egregious variants) and that your business sells five years later for $3.8 million. What will you and your team get? Because you and your partners and team own 70% of the shares, you would get 70% of $3.8 million, right?

Wrong. You get zip. Nada. Nothing. Just do the compound interest calculation to see why. The fact that you own 70% of the common shares means nothing in this case. The VC gets their money back with interest, which is not a good result but not a disaster either.

If your venture does reasonably well and sells for $50 million, you and your VC will do just fine. The VC will get $3.8 million, and you will divide up $46.2 million (i.e. $50 - $3.8 million) according to the ratio of shares owned. (That works out to over $30 million for you and your 70%-owning team.)

If you hit the ball out of the park and sell for $500 million, the Liquidation Preference becomes essentially a rounding error of interest only to accountants. If your venture misses its numbers and sells for $3.8 million, you will get nothing, which is quite reasonable: the VC bought into a dream and a team, and if you do not deliver, you shouldn't get anything.

Even if the whole business goes kaput without any realizable value, your venture is still just one among many companies in the VC's portfolio. VCs don't like losing ventures, but as they say, "This will hurt you a lot more than it hurts me." This is akin to the chicken and pig contributing to the eggs-and-bacon breakfast: the chicken may be involved, but the pig is "committed."

Just understand that your interests may not be aligned and that your and their views of risk may be different.

Raise More and Go for It?

Let's say you raised $3 million, and you are now gaining traction and everyone is telling you to raise more and really go for it. The VCs are ready to write a big check. It's a no-brainer, right? Wrong. This is when you need to think hard.

Suppose you raise a second round. It's a nice big one for $10 million, and the headline valuation is triple that of your first round. You and your team are giving each other high fives. Perhaps you don't look too hard at the Liquidation Preference. This time, the terms may actually be egregious, but the thought of that $10 million and the headline valuation number cause you to overlook that.

For example, Mark Zuckerberg should be a billionaire because he owns a ton of founding stock in Facebook? Well, Facebook has raised $640 million and some of it a long time ago. There would almost certainly be Liquidation Preference. If Facebook sold for around $1 billion today, Mark Zuckerberg would probably walk away with nothing but a lot of experience and memories. But Facebook would never sell for as little as that, so not to worry, right?

Entrepreneurs are optimistic by nature. They have to be if they are going to get out of bed every morning and work against the odds as passionately as they do. VCs don't have to be optimistic: their downside is pretty well covered.

Run the numbers -- all of them, not just the rosy projections -- and see where you end up. Then make sure your interests and the VC's really are aligned.

And how do you align interests? Five ways.

1. Align Around Facts

Facts are hard to come by in a startup. There is a ton of unknowns. So separate fact from forecast: you can take facts to the bank, but you run sensitivity analysis on forecasts. If that sounds intangible, here is the simple version. Take your forecast and...

1. Double the cost,
2. Halve the revenue,
3. Double the time it takes to do everything in the forecast.

First, do you have enough capital for this scenario?

Secondly, look at what the business would be valued at in such a scenario... not what you hope it will be valued at, but rather what other companies in a similar position are being valued at.

2. Focus on Server Costs

In the Web 2.0 era, we achieved control over the costs that bedeviled the 1.0 era:

• R&D costs have shrunk through a mix of open source, new development tools and offshore resources.
• Marketing costs have shrunk, thanks social media and viral marketing.

Hearing the proud claim that "Our major costs are now only our servers" has become common. For some businesses, that is no longer a proud refrain but a business problem. If you hit that magic viral moment when user traffic takes off, you had better have some of these three things:

1. An incredibly low cost per user as a result of some really smart performance optimization,
2. A revenue model that kicks in right after traffic grows,
3. Enough capital to sustain you until #1 or 2 is figured out.

Ideally, you would have all bases covered, but two out of three is fine. Look at Google. It had #1 and 2. Twitter and Facebook have #3. I would prefer to own Google.

Even if revenue growth is lower than forecast, if the server costs are under control and user growth is booming, you will get more VC money on good terms.

So, don't skimp on that software performance design and coding early in the game. Leaving it as an afterthought was okay for a venture starting out in 2004, not for one starting out in 2009.

3. Control the Business Planning Process

This means you will need a process. If that goes against your grain (because, say, you are a creative type, a great hacker, or a sharp sales guy), then find someone on your team who can really run the numbers and unite everyone around a common planning process.

The type of process will depend on the type of business. At a high level, they all address these questions:

1. Where are we now?
2. Where do we want to get to?
3. How do we get there?

As the entrepreneur/CEO, though, you need to own this process and drive it. The worst thing you could do is let a junior member do this for you. They don't truly understand your business and certainly don't care about it as much as you do, and their interests won't be the same as yours.

The process must be dynamic and based on a financial model. This means you should be able to adjust each variable and re-plan efficiently as circumstances change. Your VC may use earlier plans to beat you up a bit, but those plans are irrelevant; all that matters is the current one (and your VC knows that).

4. Talk to Your Independent Adviser

This is when you will find it valuable to have an independent adviser on your board (see Building an Advisory Board). Being independent means that the adviser was not nominated by the VC. Having someone like that on the board (as opposed to their being merely a friendly mentor) is important because they will then know the numbers and character of the VC better. When you need critical advice in a hurry, it is vital that your adviser knows these things.

5. Do a Deal That Aligns Your Interests

This is possible. If you have a good VC, a good board, and some good advisers, having an honest dialogue to get everyone's interests aligned is quite easy. If you have a lousy VC and a toxic board, you will have a nasty fight on your hands. Don't shirk that fight.

The simplest way to align interests is for the VC to buy some stock from you and your founding team. But the right amount: not so much that they will be afraid (justifiably) that you will walk away to play golf or start another venture, but enough that your family feels secure and personal finances are not a worry. Too much stress is not productive. In other words, you and your VC should be in the same boat and view the world and your risk with the same perspective.

When your business finally gains traction and VCs want to invest more money because they see the big pot of gold at the end of the rainbow, your negotiating position will be strong. At this stage, they need you more than you need them. But don't abuse this position of strength: just use it to get what you and your team reasonably need, and then march on together to build the big dream.

Photo credit: jurvetson.

Today, I thought it might be beneficial to look beyond the methods and techniques, and really think about what keeps a debt reducer motivated.

What Works For Me - Debt Reduction Mindset

I like to keep things simple, so I like to focus on one debt at a time. After listing my debts, and paying minimums to all creditors, I then spend my time trying to reduce the balance of the first account on my list. As soon as I eliminate the first account, I'm pumped to move to the second account. Focusing really helps.

I think it's important to build community around a goal. I like for my wife and I to be on the same team, and of one mind. In fact, it would have been impossible for us to get out of debt, if my wife and I had not learned to communicate and work together. We also surrounded ourselves with positive people and friends who would not cause us to stumble.

I find that I need to set an example of restraint and frugality. It's relatively easy to create a budget. It's a far more difficult thing to stick to a budget. As a parent, I know that my kids are looking to me for advice, encouragement, and wisdom. The sacrifices that I make today will pay big dividends in the future.

I have learned to eliminate the noise and listen to just a few, trusted voices. Instead of trying fifteen different debt reduction techniques, or looking for a quick fix to my debt problem, I sat down, created a plan, and followed the plan. I never pay attention to gimmicks and get-out-of-debt quick schemes. Instead, I focus on paying the bills that I owe and following the plan that I have created.

I celebrate every success, big or small. My wife and I have learned to celebrate our financial successes - without spending a lot of money. We enjoy a date night or take the kids out for a day at the park. I make a big deal out of our goals - and an even bigger deal when we achieve them.

I admit that I am human. Here's the reality. Even though thousands of people visit my site each month (which blows my mind), I'm still prone to the occasional mistake. When dealing with a setback, it's important that I regroup, remember why I started the process in the first place, and move forward. Even when I missed my original debt reduction goal date, I kept going.

What About You? -

I'd love to hear from you, my awesome readers. What keeps you motivated? What steps have you taken to keep your mind in the game? Have you slacked off, but decided to get going as of today? Leave comments here and / or connect with me via Twitter.

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What Works For Me - Debt Reduction Mindset

If you haven't done so, feel free to follow my tweets, and say Hello.

Today's Twitter Finds And Friends -

Finds -

Do you like bean bag chairs? Do you like personal finance forums? Then, you'll love Moolanomy's current giveaway. Register for the new Moolanomy Answers and you could win a Sumo Bean Bag Chair. (Tweeted by @moolanomy)

We recently spent an entire week removing clutter from our home and organizing our stuff. I'm totally digging Being Frugal's post - Why The Minimalist Lifestyle Appeals To Me. (Tweeted by @Zen_Habits)

Friends -

I am a big fan of @flexo from Consumerism Commentary.

I really enjoy @SunFinancial from The Sun's Financial Diary.

I learn a lot from @mymoneyblog from My Money Blog.

Follow me via Twitter

Twitter Finds And Friends

But is the mobile web really to blame here for the usability issues? Or is this just a matter of people trying to surf a web that has evolved beyond what traditional cell phones and their awful built-in browsers can handle?

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The Results of the Study

According to the new study, available as of yesterday from the Nielsen Norman web site, the average success rate for performing various tasks on the mobile web was only 59%. Compare that to 80% for the same tasks when performed on a PC.

"Observing users suffer during our ... sessions reminded us of the very first usability studies we did with traditional websites in 1994," Nielsen told USA Today. "It was that bad."

Some of the tests involved in the study had participants heading to specific web sites, including Fandango.com for movie reviews and Anthropologie.com for a shopping task. Other tests were more general and open-ended, allowing users to do web searches to find the answers to various questions. As they surfed, participants came across sites that were both mobile-ready and those that were not.

Not surprisingly, the researchers found that success rates dramatically improved when surfing the mobile versions of the web sites - by 20%, to be exact. Also not surprising was the fact that smartphone owners had less trouble performing the same tasks as users of traditional cell phones. For example, iPhone owners had an average success rate of 75% while other smartphones averaged 55%. Traditional cell phones, however, only averaged 38%.

Is the Mobile Web Unusable or is it the Devices People Use to Surf It?

The study calls into question the usability of today's mobile web, pointing out contributing factors to the problem which include things like small screens, awkward input on mini-keyboards, poorly designed sites, and bandwidth issues.

But the overall takeaway from this research feels like a case of putting hard numbers to information we already knew: surfing the web with your hot pink Razr's built-in browser is an experience that leaves a lot to be desired.

It is, in fact, the rise of the smartphone that has made the mobile web such a popular destination on both consumer devices and those designed for business use, like the Blackberry. Prior to what we can only call the "smartphone explosion," not much thought was given to the mobile web by users, web site owners, or by the handset manufacturers whose built-in browsers seemed to make the problem even worse in some cases. Data plans were an expensive luxury, too, so many people didn't even bother to add on the extra package that made mobile web surfing possible.

But when the smartphones tooks off, a movement in which Apple's iPhone has had a major impact, the mobile web felt the ripple effects of all the new users coming online. Not only were companies designing mobile sites, they were taking the time to design iPhone-specific sites, too. Although the iPhone wasn't the first smartphone in existence by any means, it has been a driving force of change for the smartphone industry as a whole. With its highly usable Safari web browser and touchscreen, other manufacturers had to step up their game in order to compete.

These days, every cell phone carrier offers multiple types of smartphones in their lineup from touchscreen Blackberrys to Android-powered phones to the iPhone and more. On these phones, the usability of the mobile web is not really an issue.

So what is this study really saying, then? If you want to surf the mobile web with ease, get a smartphone? Or perhaps it's pointing out how terrible the browsers are on traditional cell phones, seeing as how those who struggled the most were using what many would call "old school" handsets (aka "feature phones"). It's also interesting that no comparisons were made between the basic built-in browsers and a user-installed upgrade like Opera. With Opera Mini's site compression and zooming abilities, for example, accessing sites - both mobile and non - on any phone becomes much easier.

Ultimately, though, the market for feature phones may be on the decline, making usability issues such as the ones found in this study of less importance going forward. In March of this year for instance, IDC reported a decline in mobile phone shipments due to the poor economic conditions worldwide. What was really interesting, though, was that the smartphone segment of this market, while not unaffected, still remained in positive growth while the rest of the market was poised to expect an 8.3% downturn. As noted by the IDC report, that "speaks volumes about the potential upside for these devices when the market turns." What it means is that the market for feature phones is fading out. In the future, when every phone becomes a smartphone, the usability of the mobile web probably won't seem so bad.