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Virtual World Software Platform

Trend: Virtual world software could soon be crossing the tipping point on the Internet.

Patrick Cox at TCS Daily describes a potentially killer app for the Internet — a virtual world platform that would make developing applications much less expensive and allow players to use the same tools in different worlds. People who don't have kids under 30 may be unaware how big this marketplace is. For researchers, simulations of real world events will be easier and more useful.

Link: TCS Daily - The Next Big Thing

Forces are coalescing that will produce a shift comparable at least to the spread of broadband. This change will have enormous financial, cultural and political repercussions, and the most interesting aspect of the coming transformation is that it will not be some new and unexpected thing.

Rather, the Web for many will become the cliched 3D virtual reality that has been so overused as a literary and cinematic device that most of us have forgotten how compelling that vision was when it first appeared. Before describing this evolutionary leap, however, we should spend a little time thinking about the key event that led to the last one: the Internet you are using now to read these words.

There seems, ironically, far less discussion of VR today than there was then and the very term has a distinctly cheesy ring to it now. VW for virtual worlds, in fact, seems to have replaced VR among serious researchers

...WoW is a particularly important development in VWs and MMOs as it gained five million subscribers in only a year's time. The initial $50 fee for the software needed on a player's own computer would have represented significant revenues by themselves but there is a $15 monthly subscription fee as well. With over 6 million players, WoW's developer, Blizzard, earns around $1 billion in subscription fees annually.

WoW has already become much more than a fantasy VR role-playing game. Hundreds of thousands if not millions of people are using the realm for a multiplicity of non-game purposes, including political rallies and virtual church services. There are dozens of other successful MMOs, and hundreds are trying to attain that status. America, however, is not the world center for MMOs, that being Korea where online gaming has its own television channels with ESPN type coverage for top games and gamers, as well as its own courts dedicated to online crime. Millions of "gold farmers," mostly third world techies with a low cost of living and a high degree of game savvy, are making their livings by manual labor, "grinding" to earn assets that are sold online to wealthier and less patient Westerners.

...Like AOL and CompuServe a decade ago, virtual worlds exist as a relatively small number of isolated, walled-off realms, each requiring the user to download separate software. Just as the Internet did not become the social force it is today until Netscape tore down the walls separating Internet fiefdoms, virtual world technology is currently limited.

There is, however, something going on that has the potential to change that, and quickly. Not coincidentally, a team of core developers from Netscape's early days is now developing the equivalent of a virtual world browser for MMOs....

Their plan is to provide virtual world creators the client, server, and development tools to create an MMO world. The entire technology platform is free for non-commercial use, so academics are paying nothing to create economic, architectural, sociological and other simulations. For-profit enterprises would pay royalties, but only when their games or other applications collect money from consumers, not before.

This is significant because, until now, creating a complex virtual world required tens of millions of dollars in initial development costs alone. The Multiverse technology, currently in beta-testing, claims to lower the cost of virtual world production to a fraction of its current stratospheric level. For many purposes, such as personal online spaces, there would be no cost at all.

Most importantly, however, all these Multiverse-based worlds, and many are already in development, would be compatible. With the Multiverse client software, users will be able to access any virtual world built using the company's technology. Virtual worlds will become, in effect, ubiquitous. The Metaverse.

via Emergic.org

YouTube's Future

Trend: The younger generation doesn't want to sit in front of a TV to watch video.

Jeff Matthews says that whoever purchases YouTube understands how the younger generation watches video. Excerpts below.

Link: Jeff Matthews Is Not Making This Up: What Google Wants is What Rupert Has: Next TV.

YouTube is the Next TV.

Before you spit out your coffee, or Jamba Juice, or chai tea, or soy latte at that grand statement, consider for a moment what is happening here.

People watch more than one hundred million videos on YouTube every day. Since YouTube accounted for just under half of all visits to U.S. online video sites in September, more than two hundred million videos are viewed every day on U.S. video sites, including YouTube, MySpace, Google and others.

Keep that number—two hundred million a day—in mind.

Now, consider that of the nearly 300 million Americans alive at this moment, roughly 15% are below the age of 10 and roughly 50% are 35 or older, which leaves some 35% of those 300 million within the prime online-video-watching age range of 10-to-35. That is something close to 100 million pairs of “eyeballs,” as they used to say during the Dot-Com Bubble.

But let’s assume that at least two-thirds of those 100 million 10-to-35 year olds have better things to do than watch a video of some poor loner lip-synching “Stop! In the Name of Love” to his pet iguana. If my math is close to reality, then about one-third of those 100 million likely viewers, or 35 million, are watching those two hundred million videos a day.

Which amounts to approximately seven videos per person per day.

Keep in mind these videos aren't all made by lip-synching losers: there are old Jerry Seinfeld nightclub shows and home-made videos of early Beatles concerts; there are television shows both pirated and, thanks to Fox, which announced last week that it would put shows on MySpace, legit, not to mention stupid "Jack-Ass" type stunts and almost anything else you can think to look for.

And that is why I call YouTube and its ilk the Next TV.


Yes, I know the mantra from the not-dead-yet TV and Movie Establishment—“Who wants to watch a movie or a TV show on their computer?”

Unfortunately, that’s almost exactly what their friends at EMI and Warner Music asked when the iPod came along: “Who wants to listen to music on a computer?”

This notion that people need to sit in a living room to watch moving images is, I think, the opiate of the network TV bosses. If they asked me, I’d tell them precisely who wants to watch television and movies and sports on their computers: my daughters and all their friends and all their friends' friends.

About 35 million of 'em, for now.

Which is why it makes all the sense in the world to me that the Google guys—whose video service hasn’t gained much traction whatsoever—are looking to buy YouTube (founded February 2005) even though my friend Mark Cuban famously predicted YouTube will get “crushed” owing to the same type of commercial copyright issues that brought down Napster.

In fact, it makes all the sense in the world to me that Rupert Murdoch, the canny Old Media Mogul who saw what was happening and bought MySpace a year before poor old Sumner Redstone realized what was going on, is reported to be in the hunt for YouTube as well.

Because what Rupert knows is this: Cable TV is dead: long live Next TV.

Coming soon to a URL near you.

Sprint Commits to Mobile WiMAX

Trend: Fast, inexpensive wireless broadband will available next year, and it will jumpstart mobile networks into the next wave of computing and communications.

Katie Fehrenbacher at GigaOM describes Sprint's commitment to mobile WiMax and the implications for partners and competitors. Excerpts below.

Link: GigaOM : » Sprint Details Mobile WiMAX Plans

Sprint confirmed it has chosen mobile WiMAX as the technology for its 4G network and says it will spend between $2.5 billion and $3 billion on capital expenses by 2008. The company says it is working with Intel, Samsung and Motorola, though didn’t specify how much additional money each of those companies is investing in the plan.

Sprint executives said the network will offer between 2 to 4 Mbps, and will be launched in the Q4 2007, with a nationwide rollout in 2008. With that much bandwidth available, Sprint executives referred to a network that will be built to run user-generated content, and enabling subscribers to access “YouTube and MySpace on the fly.”

Sprint detailed some of the reasons for its mobile WiMAX choice, and said the company can create a “mobile WiMAX ecosystem” with 4 times the performance and a tenth of the cost of a technology like EVDO. In a call after the conference Sprint phrased the benefits as providing ten times the combined performance and cost saving over other available networks, but wouldn’t clarify more on this somewhat confusing metric.

All of the cheering on the call was of course at the expense of Qualcomm, which Sprint did not choose for the 4G network, and which builds a business off of owning proprietary IP standards and a closed model. Sprint said Qualcomm’s tech was not chosen for technical differences, among a variety of reasons, and emphasized its interest in mobile WiMAX as a global standard with a business model for building an ecosystem.

...The first winner is Motorola, who looks to have taken a huge early lead over rivals such as Ericsson and Nokia and is in a good position to stave off the coming threat of AlcateL(ucent). The second winner is Samsung, who is right now the biggest WiMax player from a global perspective and can make the most compelling argument that the are The Leader, when dealing with emerging markets (which is a far bigger play than the US in the long term). The third winner is all the small-time players who have already deployed WiMax (well preWiMax and upgradeable to WiMax really) in the 2.6 GHz band. These guys now have the potential to craft nationwide roaming offerings for their customers. They also get a good outlook for an exit plan, as sooner or later Clearwire or Sprint will look to gobble them up, which means it should be easier for them to raise money to continue to build out their regional networks.

Flipping the pricing model on the Internet

Trend: Free Internet search with related ads created a new pricing model that may change all online, networked services.

Google found a way to make (a lot of) money with search. Other companies are trying to create similar economies with a mix of free and higher-level paid services. We're witnessing survival of the fittest in virtual worlds....

Source: Werblog: Flipping the pricing model

The traditional telecom pricing model is to charge for the basic service (voice connectivity), and you get other things on top for free. That model has largely been replicated on the Internet -- users pay access providers, and applications like Yahoo!, Google, and Amazon.com have to find ways to monetize something other than access. A good part of the dotcom bubble was due to the fact that Web-based companies couldn't "monetize" their traffic, and charging users directly was off the table. The companies that weathered the storm and prospered figured out alternative revenue streams. (Value-added services for Yahoo!, contextual advertising for Google, and transactions for Amazon.)

...Skype points out a future in which voice telephony is free, and revenues come from ancillary services like voicemail. And now, Sony has announced that it plans to release massively multi-player online games in which users pay only for add-ons and objects, not for access to the game itself. (Second Life already has a model somewhat like this.) Meanwhile, mobile phone ringtone revenues are zooming past $4 billion annually, even as basic telephony revenues stagnate.

These are true killer apps. Online gaming in particular is rapidly on its way to being, at the very least, the television of the 21st century. Is it too hard to imagine broadband being free, and the virtual economies of in-game objects and customized communications features becoming the "real" economy of telecom?

55% of corporations have adopted blogs

Trend: The move from print to online communication continues (paralleling Google's stock price).

Source: Staggering Stats on Blog Adoption: DEMOletter.

The survey found that 55% of corporations have adopted blogs for both internal (91.4%) and external (96.6%) communications. More than half of these organizations launched their blogs within the last year, and most of these started within the past three months. That’s a hockey stick. And it suggests that corporate communicators will drive future growth of the social media market.

Some other findings:

Continue reading "55% of corporations have adopted blogs " »

Microsoft to dominate digital media?

Source: ? Unstoppable? The Microsoft media juggernaut | Between the Lines | ZDNet.com

Is there any doubt that  Microsoft is not only poised to repeat its successful Windows formula, but that that success will, over the long run,  actually dwarf the company’s success with Windows? 

No single company has circled its technology wagons around the digital media universe the way Microsoft has. It’s just a question of when the world finally realizes that Microsoft has already gone in for the kill. This week’s announcement from Philips wasn’t just a stake in the ground. It was just another part of a foundation on which Microsoft’s media skyscraper will rest.

Continue reading "Microsoft to dominate digital media?" »

Tagging Internet Content

Source: BusinessWeek: Picking Up Where Search Leaves Off.

With del.icio.us, people are able to tag any link they choose for easy retrieval later. What makes tags more powerful than a Web bookmark is that they can be shared easily with other people. If someone tags a story on Iraq, for example, that link is added to a list on del.icio.us of other Iraq content. Anyone on the service who wants to read about Iraq can then find a list of stories that have been tagged and see who tagged them. Today more than 85,000 people are using the free service. "Tagging is about the most important tool of last year," says Clay Shirky, an adjunct professor at New York University's Interactive Telecommunications Program.

Continue reading "Tagging Internet Content" »

IPTV

IPTV uses the Internet to deliver television.

Link: BusinessWeek.

The technology can be used to offer a dizzying array of options: Desperate Housewives anytime you want it, the Super Bowl from a dozen different camera angles, and a nearly limitless number of channels. Telecom companies are embracing IPTV since they're building their TV systems from scratch. Cable companies, which use older technology, are likely to begin migrating to IPTV over the next five years. Analyst Hervé Uteza with the Diffusion Group Inc. estimates that 15.3 million homes will subscribe to IPTV services worldwide by 2008, compared with 184 million using traditional cable technology.

Continue reading "IPTV" »

DVR Possibilities

Link: The Surging Tides of a Digital Torrent.

With cable-TV operators and technology vendors like Microsoft (MSFT ) making a big push into the digital video recorder market pioneered by TiVo, television is poised to flip from an archetypal one-way broadcast service to a Web-like interactive model. A growing percentage of those digital video recorders can pull content from the Internet as well. And last year, over 150 million camera-enabled mobile phones were sold, a number expected to grow to 500 million in four years.

By the end of the decade, therefore, a billion people will have the ability to contribute not just text but photos and video instantly to the global virtual conversation.

Kevin Werbach is an Assistant Professor at the Wharton School, University of Pennsylvania, founder of the Supernova Group, and the organizer of the Supernova Conference

Skype: Innovative and Proprietary

Can we have our cake and eat it?

Link: blogs | noirExtreme.

Skype is about reinventing telecommunications, not just porting a 100-year old application to a new medium. Skype is a smart peer-to-peer application built on top of a dumb network, delivering superior voice quality without the need for QoS, Session Border Controllers or any sophisticated system that traditional operators believe they need to deliver VoIP. And on top, Skype is nearly free.

So what's been holding me from jumping in? Skype is a proprietary solution. Users are escaping from the prison of the POTS only to jump into the walled garden of Skype. While this sounds like a religious statement today given the number of innovations Skype provides over the POTS, over time problems will undoubtedly appear. Although almost completely invisible today, Skype —like any other proprietary solution— will have the following significant drawbacks:

  • Slower innovation —a lack of competition does not encourage vendors to continuously improve their products to reduce cost and add new functionalities.
  • Unfair pricing for services —the absence of alternative for each element of the solution makes it possible for a vertical vendor to charge an unreasonable price for services.

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2/17/09 3:49 PM Delete