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Maybe “Paid” Is the Future of Online Business

Blake Snow | Friday, July 3, 2009 | 11 comments

Despite a knee-deep recession, the idea of giving away something for free and charging for something else later is bigger than ever. But is “free” selling? Or does “paid” have an online future? Continue »

Why the Mobile Web Won’t Save Sirius XM

Kevin Kelleher | Friday, July 3, 2009 | 6 comments

siriusxmThings may finally be turning around for troubled satellite radio venture Sirius XM. Following a long and costly merger, the company became desperate for new financing just as credit dried up, and managed to avert bankruptcy only by selling 40 percent of itself to John Malone in exchange for a loan paying 15 percent interest. Last week, Sirius secured another half-billion dollars in high-interest debt, and CEO Mel Karmazin got a 20 percent raise and the option to buy 120 million new shares to celebrate his success.

Success, that is, if you define the word as simply avoiding failure. Things may be turning around, but Sirius XM has a long way to go before it finds true success. It needs to create a lot of new revenue to pay off all that debt. It needs to reverse the deterioration in the number of net subscribers that took place last quarter, when they fell 2.1 percent to 18.6 million. It needs to expand its allure beyond the car market, which will remain in a slump for the foreseeable future.

With the launch of Sirius XM’s iPhone app, the hope has emerged that the mobile market will provide the answer. The Sirius XM App is the fifth most popular download in Apple’s App Store, although the drop from the No. 3 spot since last week suggests demand is waning fast as current Sirius subscribers download it. That may help deter more subscribers from canceling their Sirius accounts, but will it lure in new ones? Continue »

Partner Event

VentureBeat Presents MobileBeat 2009

Join the most influential investors, mobile industry executives, entrepreneurs, press and analysts at MobileBeat 2009 for one day of in-depth discussion, debate and power networking, held on July 16 at the Parc 55 Hotel in San Francisco. MobileBeat will focus on apps: the people who use them, the people who make them, and the people who fund them. MobileBeat will also have a Top Startup competition and is actively soliciting submissions from startups younger than 3 years old and in two categories. These companies will get to pitch in front of a high-level audience: some 400 top mobile executives from startups and larger companies, venture capital firms, publishers, media, device makers and OS platforms. Startups can submit to be chosen for the competition here. Deadline for submission is July 1. Companies will be notified if they qualify on July 6.

What to Read on The GigaOM Network

Thursday, July 2, 2009

AT&T: Simply Addicted to the iPhone

Om Malik | Thursday, July 2, 2009 | 11 comments

The launch of Apple’s new iPhone 3GS was the best sales day ever for AT&T’s retail stores, while the number of orders taken at its online store also hit an all-time high, according to an internal memo obtained by MacDailyNews, a blog devoted to all things Apple. While the memo doesn’t outline the precise number of devices sold, it does reveal other details.

On this year’s launch day, iPhone sales exceeded sales recorded on 2008’s iPhone launch day, Black Friday 2008 and Dec. 26, 2008 — all heavy-volume sales days. In fact, this year we surpassed 2008’s launch day sales at about noon Central time, and sustained our previous peak hour record, also set in 2008, for 11 straight hours.

Apple sold a million iPhones the weekend of the 3GS launch. A survey by Piper Jaffrey shows that nearly 56 percent of iPhone 3GS buyers were upgrading from the old device and only 28 percent were switching to AT&T — but that’s still about 280,000 new subscribers that will be handing over a lot of money to the carrier. As I pointed out in a previous post, “[T]he average iPhone user gave AT&T about $94.74 a month vs. an average postpaid AT&T customer, who spends about $59.21 a month.”

MJ Fans Flock to eBay for Memorabilia

Jennifer Martinez | Thursday, July 2, 2009 | 2 comments

Millions of people logged onto the web when the news of Michael Jackson’s sudden death broke last week, and they’re continuing to flock to eBay to get their hands on the pop king’s memorabilia. The online auction site said it’s since seen the percentages of daily searches, listings and sales of Michael Jackson memorabilia rise dramatically.

As of yesterday, eBay said the number of searches for Michael Jackson items had surged 235 percent over the week prior to his death. People are apparently looking to profit off their old Michael Jackson loot, too — new listings of such gear is up 57 percent.

Michael Jackson dolls have risen in value as much as 450 percent to sell for about $120, according to Vendio Research, which provides market research for eBay sellers. With the advent of iPods, however, a vinyl version of the iconic “Thriller” album is only going for about $70. But sales of single white gloves have gone through the roof, Vendio said, with 352 sold last week alone on eBay vs. the prior average of five a week.

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Akamai to Make iPhone Video Streaming Smooth

Stacey Higginbotham | Thursday, July 2, 2009 | 2 comments

iphones1Akamai today said it would provide adaptive bit-rate streaming to deliver video content from web sites to the Apple iPhone 3G and devices running the iPhone OS 3.0 operating system. Basically, using adaptive bit-rate streaming means folks can watch streaming video on their iPhones or iPod Touches with fewer stops and starts. Adaptive streaming adjusts the video content to a lower or higher bit rate, depending on how robust the web connection is. Akamai offers a similar service for Microsoft’s Silverlight for video on PCs. Adobe Flash and Move Networks also offer adaptive bit-rate streaming, although Adobe uses a proprietary method that requires special servers.

Apple and Akamai are bringing the service to the mobile world, which will be great for dealing with the many variances in mobile data connections, and will provide for smoother video delivery over dodgy networks. Videos can run in the Safari browser, so they don’t even require a special app that AT&T, the carrier that provides service for the iPhone in the U.S., might try to block. For more details on this, check out the awesome story Liz did about HTTP video on the iPhone or her in-depth look at adaptive bit-rate streaming over at our subscription site, GigaOM Pro. For pretty video streaming, check out Apple and Akamai’s  show-and-tell site.

Will MySpace Kill MySpace Latino?

Jennifer Martinez | Thursday, July 2, 2009 | 3 comments

MySpace logoAs MySpace struggles to regain ground it’s lost to Facebook and sort out its revenue woes, executive departures from MySpace Latino, a combination Spanish-English site targeted at U.S.-based Latinos that launched a little over a year ago, indicate it may be on the chopping block. MySpace Latino’s VP of Hispanic sales and strategy, Manny Miravete, has left the company, and the site’s managing director, Victor Kong, has reportedly left as well. The site itself hasn’t been refreshed in over a week amid a wave of layoffs at MySpace’s U.S. and international offices.

When asked if it planned to shut down MySpace Latino, the company sent us this statement (bolded emphasis ours) via email: Continue »

Smart Meters That Can Tweet, From a Utility That “Gets” Broadband

Katie Fehrenbacher | Thursday, July 2, 2009 | 4 comments

yellostrom3Germany’s Yello Strom might be the coolest utility in the world — it’s embraced the intertwining of energy and home broadband connections and is one of the few that manages its smart meter service directly via its customers’ broadband link. That means it can easily offer consumers web-style smart meter applications, including Google’s PowerMeter energy management tool, and potentially a twitter feed of energy consumption.
Continue »

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