Apr
09

Facebook: ‘We Bought A Social Network’

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The technology news out today is bigtime: Instagram is being bought by Facebook for $1 billion in cash and stock, the Big Man announced today. It’s a development that has people (including us) wincing at what could become of the fun and simple photo-sharing service for iPhone and, as of last week, Android.

We wince only because Facebook and big companies before it have consistently proven their wonderful ability to run the companies they buy into the ground or shut them down and integrate the technologies into their own platforms.

But should we expect the same this go-’round?

This acquisition is the most notable one in the world of social media since Google bought YouTube for $1.65 billion, and YouTube is still around much like it was before the acquisition: independent and potentially even better than before, just part of the Google family of products.

We’d hope (and it would seem) that the Facebook-Instagram deal mirrors that of Google-YouTube. According to the post on Zuckerberg’s page, the company understands that it can destroy Instagram if it’s not careful:

“…we need to be mindful about keeping and building on Instagram’s strengths and features rather than just trying to integrate everything into Facebook. That’s why we’re committed to building and growing Instagram independently. Millions of people around the world love the Instagram app and the brand associated with it, and our goal is to help spread this app and brand to even more people.”

So, to that end, some thoughts on what could become of both sides:

- Instagram isn’t going anywhere anytime soon. Facebook is well aware that it has the ability and power to stupidly ruin a good thing, and it doesn’t want to do that. Instagram founder Kevin Systrom reiterates this message, too.

- Facebook users will probably get Instagram filters and better editing features at some point, so prepare to see more pictures of your friend’s kids, only with various filters and blurry parts.

- This could mean the first real domino in Facebook rolling out tags for photos, giving the standardization of tagging huge legs for the future.

- You have to wonder if the Instagram “Heart” will become a Facebook “Thumbs up.”

- Facebook is already the No. 1 photo upload site on the Internet, and this purchase will only strengthen its position there over rivals such as Google+. This could potentially hurt Twitter, too, though Instagram allows for sharing on that site and will continue to do so. Too early to tell.

- It could also mean a death blow to Flickr, which, while popular with photographers, you hear less and less of over time. It’s just not as social and doesn’t have the traffic or mobile friendliness. (And there are other services besides Flickr, as well.)

- It’s likely any real significant development from this won’t be visible for a year or more, but you may see some early tweaks to image sharing on both sides in the first six months.

More than likely, the most notable change to Instagram will be for the founders themselves, who are joining Facebook under terms of the deal: After two years out on their own, they now have bosses.

Oct
19

Tabs on the Holidays

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MediaPost, one of my favorite sites for trade-specific communications news, reports this from the National Retail Federation:

Smartphones and tablets will play a major part in shoppers’ holiday foraging, with 52.6 percent of smartphone owners using them to sniff out purchases. And those who own tablets are even more keen on shopper technology, with 70.5 percent of tablet owners planning to shop with them.

Note that this doesn’t say “buy.” Just forage. Which I believe means “to seek out.”

When it comes to tablet vs. smartphone use, one element I’ve found interesting is that while retailers and other companies are scrambling to build smartphone apps – Droid and iPhone versions only, let’s be serious – there’s not as high demand by firms to build tablet applications.

This isn’t to say tablets aren’t popular. They are.

But you don’t necessarily need, say, a banking or e-store app on a tablet, because the screen is large enough to accomodate to regular website. Yet banks and retailers are developing phone-specific applications (or at the very least, mobile-optimizing their websites), because they are easier to view on a tiny screen.

It’s easier to browse on a smartphone and buy on a tablet, which brings us to purchasing figures: only 14.1 percent of people plan to buy stuff on a smartphone this holiday season versus 33.8 percent – more than double – who will actually buy goods on a tablet.

Meanwhile, holiday spending – which rises every year, even in bad years, just by a different amount – will see a small increase of 2.8 percent this year. The average for the past decade has been around 2.6 percent.

- Jeff (@jephkelley)

Sep
09

Anna’s Social Media Picks of the Week (September 9, 2011)

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The social space online changes rapidly. Feedback stays on top of emerging media news so you don’t have to. Here are the must-read social media articles of the week of September 4, 2011.

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Aug
19

The Patent Wars

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There’s been a bit of buzz among the techies this week regarding Google’s acquisition of Motorola Mobility, formerly the telecom stalwart’s Mobile Devices division.

The move signals the search giant’s desire to supercharge its Android mobile operating system, but there’s more at play here. Since the announcement – coinciding with significant turbulence in the markets – Google’s value has dropped considerably, indicating that the finance community is not impressed with the acquisition or the price paid (there was a significant premium for the Motorola shares).

So if the move wasn’t made for the bottom line, what other factors were behind this decision?

If you don’t follow the business side of the mobile computing industry, well, I’ve probably lost you already. But for those who stuck around (related: thank you!) and don’t know, there’s a major legal battle brewing over patents filed for smartphone features that we all take for granted. This is stuff like capacitive touchscreens, software (as opposed to physical) buttons for navigation, and the different functions of ‘swiping’ your fingers across the screen. All these features are in dispute, and Apple (and its mountain o’ cash) is leading the litigious charge.

In defending the single best selling smartphone out there, the iPhone, Apple claims that its desire is not to be anti-competitive, but rather to push peers to come up with their own innovations. Well played, Apple. Well played.

To that end, they’ve sued everyone responsible for the Android food chain (Google, Motorola, HTC, Samsung, and more) for copying parts or features of the iPhone. They even teamed up with former nemesis Microsoft to buy up the intellectual property of former telecom and networking giant Nortel, to the tune of $2.6 billion for some 6,000 patents. Clearly, the game is afoot and it is played with a lot of zeros. Taiwanese smartphone and tablet maker HTC, for their part, snatched up 265 patents for $300 million by buying S3 Graphics, a company that has had recent success against Apple in copycat court.

Which brings us back to Google: what are they getting for their $12.5 billion investment in Motorola, besides bringing a major Android licensee in-house?

A: 17,000 patents with another 7,000 pending.

That’s some serious firepower.

What does this all mean for the consumer? Probably nothing. There’s a lot of money changing hands and a lot of lawyers involved here, but at the end of the day, neither side seems to have a distinct advantage. Patents seem to be either super-specific or overly broad and litigation tends to lead more to deal-making than product-breaking. Apple tends to be particularly tough to work with in this regard, but if they had a really strong case, chances are they would have never let Android smartphones achieve their current level of success, leading as a platform, if not a singular device. The only potential downside I see is that instead of improving their devices and pushing the envelope and technology forward, they’re spending their capital on expensive pieces of paper and international bickering.

But, as anyone who’s ever had to replace a smartphone knows, if the cost of these devices is any measure, there’s plenty of money to go around.

-Thomas (@thomasmcdonald)

Aug
18

Anna’s Social Media Picks of the Week (August 19, 2011)

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The social space online changes rapidly. Feedback stays on top of emerging media news so you don’t have to. Here are the must-read social media articles of the week of August 14, 2011. Read More »

May
26

Banking on Socialization

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During the past few months, we've been researching deeply into the financial markets, but not in the way stockbrokers and analysts do. We want to find out how banks are using the web, and paint a picture of what the industry will look like in five, 10, and 20 years. Read More »

Apr
27

Instagram-plification

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Few social services have risen as quickly to the level of Instagram, the photo sharing app for iPhone (and Android at some point) that has grown to more than 3 million users in the seven months of its existence.

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Apr
02

Color Me Unimpressed

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So, ever wonder what $41 million gets you these days?

Apparently – if the Color app’s recent announcement is any indication – it gets you quite a bit of hype. The concept behind Color is important. But its execution is nothing to write home about. Read More »

Mar
24

Big App-spirations

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The other day I downloaded some mobile app I was referred to called Ditto. If you haven’t heard of it, all you really need to know is that it’s for groups of people to schedule get-togethers or something like that. For the purposes of understanding where I’m going with this, its specific purpose doesn’t really matter. Read More »

Mar
18

Anna’s Social Media Picks of the Week (03/18/11)

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My top picks for social media news this week include the buzz around SXSW products, Facebook Deal subscriptions, March Madness, Twitter’s Birthday, and an article on how to get paid news free with a “social loophole.” Read More »