Foursquare TV? "We don't need no stinkin' badges..."

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badgesSpinning through the TechCrunch RSS feed the other day we discovered that:

Starting on August 1, when you use GetGlue to check-in watching one of HBO’s hit shows, you’ll earn exclusive stickers designed by HBO.

And later that day, while trying to compare Hulu Plus with NBC's own website, we stumbled across:

Now you can be as proud as a Peacock with historic NBC logos! Collect all seven. NBC's 'N' logo got its start in 1975 and was used through 1979. With two brightly colored trapezoids making the 'N', the design was very much of its time. TVasApp

We're all in favor of rewards which promote and retain viewer engagement, still we’re skeptical that a badge, mayorship, or other electronic social doodad is going to accomplish much here. Two ideas on how to do better:

  • rewards have to be integrated into a cycle. TV has for all practical purposes turned into an application with six parts, of which rewarding is a final (and an important) step
  • instead of badges, give viewers more of what they want – programs. Build points towards a la carte premium viewing (Hulu Plus credits, whatever). This is an opportunity to build and reinforce the six-part cycle above. And it’s also a much more meaningful way to keep viewers connected. To quote one of our favorite parts of the Hoffman|Lewis credo:

"We don’t get them to try our product by convincing them to love our brand. We get them to love our brand by convincing them to try our product."  (via The Ad Contrarian)

The Other Long Tail: When Technology Gets MagicJacked

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magicjack We noticed the other day that one of our earliest clients, VocalTec Communications, merged with YMAX Communications – purveyor of "MagicJack" via late night infomercials and shopping channels.

With a founding team including Israeli entrepreneurs Alon Cohen, Lior Haramaty, Opher Kahane, and Elon Ganor, by the mid-'90s, VocalTec played a central role as both Voice-over-IP (VoIP) innovator as well as developer of  the surrounding "ecosystem" (to use a consulting babble term). VocalTec had a lot to do with creating ITXC, a  wholesale VoIP carrier and traffic exchange and was one of its largest shareholders.

Back in 2005, a struggling VocalTec did a reverse merger with Tdsoft, an Israeli softswitch company, and now with the YMAX merger combines softswitches (and their underlying intellectual property), carrier operations, and direct-to-consumer telecom services under an aggregated, but modest-sized (~$100M revenues) umbrella.

It's hard to remember the era before the dotcom/telecom implosion of 2001, but back then, at its peak, chatter about VoIP and its ominously disruptive force took up nearly as much oxygen in the pre-blogosphere of conferences and trade press as, say, iPhone/Android talk does today.

That era was also the beginning of "personal brand"-making, internet sloganeering ("information wants to be free", "Telecosm", etc.), internet personalities, and light futurism-as-entertainment now familiar to any TED-goer. As if to legitimize VoIP's role in the carnival, The Economist's trendspotter Frances Cairncross added gravitas to the topic through various pronouncements about "The Death of Distance."

The expectation was that VoIP would unleash a telecom revolution. Well, it certainly changed telecom, but rather gradually and in a comparatively humdrum way. Hardly the equivalent of the advent of electricity or television, VoIP did greatly accelerate the relentless downward pressure on long-distance pricing, and it enabled "trunking", or bundling together of long-haul traffic, much more economically, often bypassing traditional telecom carriers altogether.

These were the sorts of pressures that, once AT&T was separated from its (original) wireless business, shrank the company to the point the leftovers were remaindered to SBC Communications, ostensibly for the brand value.  So perhaps it wasn’t quite as much the Death of Distance as it was simply the withering away of IXCs (inter-exchange carriers), which were a regulatory artifact anyway.

The fact that VoIP is everywhere – a cheap, banal, infomercial-sold commodity – is a good thing: a triumph of packet switching for the masses. It’s simply worth remembering if you’re a purveyor of anything from, say, cloud storage to video streaming, that this other “long tail” – the increasingly rapid, continuous descent into mass commoditization (being “MagicJacked”) – is what awaits many, many innovations.

Hollywood (Cautiously) Tries Internet "Syndication"

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warnersnetflix Hollywood is continuing its cautious experiment with establishing cable-independent or at least "complementary" (to quote Hulu CEO Jason Kilar's diplomatic language) distribution deals.

Earlier this week Warners and Netflix announced  a quasi-syndication deal for "Nip/Tuck" via Netflix. Though a modest deal in the grand scheme of things, it's potentially an interesting benchmark:

  1. Warner Home Video came to the conclusion that Netflix distribution is a reasonable consolation alternative given their prior struggles trying to syndicate Nip/Tuck’s racy near R-rated, FX-level fare.
  2. The show will still be syndicated on MTV Network's niche, gay-oriented Logo channel, helping avoid too much of an industry precedent in "internet-only" syndication just yet.
  • If the Variety report is correct, the Netflix dollars/episode are well within a respectable range for second-tier cable syndication
  • The industry's overall window structure has been preserved, saving precedent-setting confrontations with legacy distributors for another day.Windows