Daily Marauder

ONLINE SERVICES/INTERACTIVE MEDIA

Barry Diller’s soon-to-split-up Internet outfit IAC/InterActiveCorp has created minimal value, analysts say. A new property, FiLife.com, a financial site joint venture with Dow Jones, is floundering and may never see an official launch. Diller seems “less a visionary and more a spastic dealmaker.” (Iwantmedia 5/19, http://www.portfolio.com/executives/features/2008/05/12/Barry-Diller-Profile 6/08)

Traditional media companies appear to be accelerating their acquisitions of Web startups. Recent deals include CBS-CNET and Comcast-Plaxo. The ascent of Google is said to have “forced old media companies to realize they must act immediately or lose relevance in the Internet space.” (Iwantmedia 5/19, http://www.news.com/8301-10787_3-9946149-60.html 5/16)

Microsoft is issuing another proposal to Yahoo that calls for a transaction, but does not involve the acquisition of all of Yahoo’s assets. The software giant is believed to be seeking to sell advertisements to be displayed next to Yahoo search results, in an effort to take on Google. (Iwantmedia 5/19, http://www.news.com/8301-10784_3-9946767-7.html 5/18)

Facebook CEO Mark Zuckerberg says he wants to meet with Google and work out the privacy issues that caused his site to block the search giant’s new Friend Connect, which allows Web sites to add social-networking functions. “They launched that without asking us,” he says. (Iwantmedia 5/19, http://www.infoworld.com/article/08/05/19/Facebook-CEO-wants-to-talk-with-Google-on-Friend-Connect_1.html 5/19)

When it comes to Web video, CBS has been one of the most promiscuous media companies out there. CBS has taken a strategy of superdistribution when it comes to spreading its videos across the Web. It wants its videos everywhere. Thus CBS has struck distribution deals with more than 300 sites—including YouTube, AOL, MSN, Joost, Veoh, Bebo,and TVGuide.com. (http://www.techcrunch.com/2008/05/17/cbs-centralizes-its-superdistribution-of-videos-on-the-web 5/17)

Scripps Networks — which owns cable networks such as HGTV, Food Network, DIY Network and Fine Living — will supply YouTube video clips from the channels and sell advertising to support them. The deal, which begins today, includes shows such as “Design on a Dime” and “What You Get for the Money” from HGTV as well as recipe demonstrations from chefs on the Food Network. (TVWeek.com 5/18)

Adobe announced the public beta of a new flash player, featuring improved 3D graphics and a P2P file sharing architecture that helps transmit large HD files by utilizing the bandwidth of hundreds of users. The solution could be a breakthrough for digital media distributors looking to stream more HD content without paying exorbitant Content Delivery Network fees. (Cynopsis 5/19)

Fox International Channels’ Fox Networks launched Worthnet.Fox, a vertical ad network targeting international consumers of financial news and investment advice online. (Cynopsis 5/19, http://www.reuters.com/article/internetNews/idUSN1640790620080519 5/19)

Conde Nast is acquiring Malden, MA.-based tech blog Ars Technica for around $25 million, reports TechCruch, to go along with earlier acquisitions in the space Wired.com and Reddit. (Cynopsis 5/19, http://www.nytimes.com/2008/05/19/business/media/19carr.html?_r=1&oref=slogin 5/19)

Time Warner’s AOL is completing its acquisition of Bebo, the global social media network, which will form the centerpiece of AOL’s newly created People Networks business unit. People Networks will integrate AOL’s other applications and tools, including chat and e-mail into Bebo. (Iwantmedia 5/19, http://biz.yahoo.com/ap/080519/aol_bebo.html 5/19)

Time Warner’s AOL brand is taking a back seat as the company long associated with dial-up Internet access launches dozens of Web sites targeted at specialized audiences, such as the new Asylum.com for young men. The AOL brand is seen as “out of date; probably a kiss of death.” (Iwantmedia 5/19, http://biz.yahoo.com/ap/080517/aol_unbranding.html 5/17)

Just a few months after the bomb that was NBC’s “Quarterlife” appeared to kill the idea that the Web could foster TV development, ABC is announcing plans to pick up for midseason “In the Motherhood,” a mom-targeted series produced by MindShare Entertainment for MSN. (Iwantmedia 5/19, http://www.mediaweek.com/mw/content_display/news/digital-downloads/broadband/e3i9b83c368b14067226eef9f9bc536bb64 5/19)

Online ad spending surpassed $21 billion last year according to a new report from the IAB and PricewaterhouseCoopers, an increase of 26% from 2006. Search remained the dominant category accounting for 41% of spending, almost double what display claimed (21%). Digital video ad dollars accounted for about 2% of the overall pie. (Cynopsis 5/19)

A new study from the Pew Internet & American Life Project finds the internet has very little effect on purchasing decisions compared to traditional influences. For those who bought music during past year, 83% said they learned about it from the radio, television or movies, compared to 56% who said they discovered it using online tools and resources. Just 22% of all music buyers said their most recent purchase was online (either a digital download or ordering a compact disc), while 74% said their most recent purchase was at a store. Among a smaller set of music buyers using the internet to find out about music, one-third said their most recent purchase was online. (Cynopsis 5/19)

Nielsen Online’s Parent Company rankings for April confirm Google’s rise, although the unique audience numbers differ from ComScore’s figures by almost 13 million uniques. Time Warner Sites led in the stickiness category, with users spending an average of 3 hours and 40 minutes on the sites during April. (Cynopsis 5/19)

Top 10 Web Sites by Parent Company Combined Home & Work (U.S.) – April 2008
Rank   Parent          Unique Audience (000) Time Spent Per Person (hh:mm:ss)
1      Google                128,188                        1:46:39
2      Microsoft             122,059                        2:17:01
3      Yahoo!                117,065                        3:08:40
4      Time Warner       105,566                        3:40:04
5      News Corp.           76,453                        1:49:21
6      eBay                    67,047                        1:52:41
7      InterActiveCorp     64,098                        0:21:27
8      Wikimedia Found.  56,259                        0:17:51
9      Amazon                55,677                        0:26:30
10      Disney                  49,721                        0:43:05
Source: Nielsen Online