This, the first of our regional blogs, is authored by the technology and financial journalist Dominic Basulto. Dominic is a New York native, has been a senior editor at Corante since day one and has written for a number of online and offline media companies. Send tips or story ideas to: basulto@gmail.com.
About this weblog
Here we'll report daily on the latest tech and business developments in New York City. Impossible we concede: comprehensive coverage of the city's every story. What we hope you'll find: tips, tidbits and perspectives you won't find elsewhere. As well as unique insights, original interviews and more that should be of interest to New York's vibrant community of technologists and those who track, invest in and report on them.
Anyone remember the 1997 thriller with Michael Douglas and Sean Penn called The Game? In the movie, a wealthy investment banker leads a boring, routine life until his kid brother involves him in a real-life game that takes a sudden turn for the unexpected... Just to refresh your memory, here's the plot synopsis from Internet Movie Database:
"Nicholas Van Orton is a very wealthy San Francisco banker, but he is an absolute loner, even spending his birthday alone. In the year of his 48th birthday (the age his father committed suicide) his brother Conrad, who has gone long ago and surrendered to addictions of all kinds, suddenly returns and gives Nicholas a card giving him entry to unusual entertainment provided by something called Consumer Recreation Services (CRS). Giving up to curiosity, Nicholas visits CRS and all kinds of weird and bad things start to happen to him."
Anyway, apparently there's a company that recently launched in Manhattan that sounds at least remotely similar to CRS: area/code. Decide for yourself if this sounds like CRS or not... Here's a blurb from the company's Web site:
"Big Games are large-scale, real-world games. A Big Game might involve transforming an entire city into the world's largest board game, or hundreds of players scouring the streets looking for invisible treasure, or a TV show reaching out to interact with real-time audiences nationwide. These games have been commissioned and sponsored by advertising agencies, media firms, universities, and large consumer brands." Taking an example from Sean Penn, maybe it's time to commission one of these games for your favorite Wall Street investment banker...
Found via a del.icio.us tag: a list of all Google jobs available in New York City. 35 jobs in engineering, 22 in advertising sales and 12 in product development. Interestingly, there's only 1 opening in "legal." If you're a Google fan, that's probably a good thing, eh?
If you're a small business owner looking for help in starting up a new business, according to MSNBC (via Entrepreneur.com), one good place to look is a local university:
"Almost every reputable business school has an entrepreneurship program these days, and one of the most practical ways for a student to get some useful training is to make contact with the real world. That would be you. The reason this partnership works so well is that entrepreneurs, running around like madmen trying to keep everything together, often have something of a brain drain in their company. Universities, of course, are filled to the brim with ideas and innovative thinkers."
"The school has a program called GET: Gateway to Entrepreneurial Tomorrows. It's funded by a grant and is aimed at small, minority businesses in inner cities of New York's Mid-Hudson Valley. GET has helped delis, furniture retailers, small cell phone stores, and mortgage origination businesses get started and get growing. The service--which is bilingual--is free and offers entrepreneurs the resources they need to start or maintain a business."
Verizon Wireless announced plans to slash the price of its high-speed wireless Internet service by 25%, opening up a price war with other companies offering the same EV-DO technology (e.g. Sprint Nextel). According to an analyst interviewed by Reuters, the pricing move is a classic attempt to build the customer base while, at the same time, holding off the advance of competitors. The price cut should put the service, mainly aimed at business people until now, in a more affordable price range for consumers.
For his mash-up of Google Maps and SliceNY.com that resulted in the Slice Pizza Map, New York City's own Adam Kuban was interviewed by NY1 reporter Adam Balkin:
"The all–New York-all-the-time channel will air a segment on Google Maps mash-ups in which I appear blabbing about how neat the tool is. Slice, of course, uses the function in our recently released Slice Pizza Map, which plots all the pizzerias that we or our correspondents have reviewed since this site's inception."
Rumors are leaking out that billionaire corporate raider Carl Icahn is weighing a possible tender offer for a 10% equity stake in media giant Time Warner. Representatives for Carl Icahn and Time Warner both refused to comment, so at the moment, it's only speculation. However, where there's smoke, there's fire.
Currently, Icahn's investor bloc controls about 2.6% of Time Warner, so edging that equity stake up to 10% will require about $8 billion. No small feat, even for Icahn. In fact, Wall Street insiders are skeptical in general about Icahn's plans:
"This is a very, very difficult situation for Icahn to win beyond what he's done already. This is a very large float -- 4.6 billion shares outstanding. Even with 10% of the shares, it's hard to see that he would be able to meaningfully change the direction of the company... This is not the typical Icahn deal, where there's a sleepy management and no one realizes the value of the assets. Time Warner is the most overanalyzed collection of assets on Wall Street..."
Well, it's about time that our suburban neighbors to the north take up the blogging baton... The New York Times reports on the growth of the Westchester blogosphere, complete with a full-color pic of bloggers in Croton-on-Hudson. There are a lot of smart folks joining the blogging bandwagon - like a 28-year-old IBM financial analyst - but most of the chatter thus far has been nothing more than "blog-orrhea," says the Times. In other words, lots of annoying talk about Taco Bell, the local Old Navy and less-than-scintillating family reunions:
"This local universe of unaffiliated blogs, or online journals, touches on everything from local politics, to the economics of Star Wars' Galactic Empire to the Boston Red Sox's habit of losing on Ben Affleck's birthday. The bloggers' postings range from the meaningful to the mundane... But consequential or not, these online ruminations provide a glimpse into the lives of everyday Westchesterites. And taken together, bloggers say, they provide a new digital voice for a county that is often overshadowed by the behemoth to the south."
Another gem from Overheard in New York, this time from the Verizon Wireless store on 34th and Broadway:
Cell phone chick: So if you upgrade to this new plan for $10 more a month, we'll give you a totally free phone. $0, free of charge. All you have to do is mail in a $50 rebate form.
Woman: Wait, I thought it was free.
Cell phone chick: It is, you just pay me $50, and then send in the rebate form and they'll mail you a $50 check.
Woman: Wait, but it's not free? My husband will kill me if I spend money on a new phone. What's 50 minus 50?...I went to Syracuse University, I'm a college educated person, and I'm still confused. Is it free?
Habana Outpost: Brooklyn is billing itself as "New York City's first solar-powered restaurant and market." The notion was so intriguing that we checked out the Habana Outpost Web site, where we learned the full story:
"Open from May 21, 2005 until Halloween there will be an outdoor market with local up-and-coming and underground designers, artists and merchants selling their wares, DJ's, carwashes, great food, movies and more."
Dorkbot-NYC is holding another second meeting in Chelsea after the Labor Day weekend to celebrate people doing strange things with electricity. What exactly does that mean? Well, there's Mark Esper, who will be offering a demo of a self-generating tornado. We hope, of course, that there are no plans in the works for a self-generating hurricane...
A case study in how to annoy New York bloggers: a bunch of Williamsburg hipsters (all of them white) are throwing "kill whitey" mock hip-hop parties on a monthly basis. The kids dance around "raunchily" while yelling "kill the whiteness inside" and acting like hip-hop thugs. The party impresario is The Pumpsta, who recently revealed to the Washington Post why he held these parties:
"I'm throwing this party, and it's obvious that I'm white and I'm kind of appropriating this culture but in an ironic way... I'm trying to kill the whiteness inside."
Needless to say, the blogosphere has been buzzing about the hipster DJs. Go to Technorati and type in "kill whitey pumpsta" and there are already about 25 posts this week. I Wish I Was an Urban Hipster weighs in with a post called "Kill anybody at these parties for the good of humanity":
"So a couple of people sent me a link to this story. Deejay's Appeal: "Kill The Whiteness Inside". I had read this article that day and honestly couldn't even get through it. It was just that awful. I mean the concept of this party just pissed me off. Dancing up like black people did in the 80's and dancing to remixes done by a guy called The Pumpsta. Who by the way I want to beat the crap out of just based upon his picture."
Crain's New York has the details on New York's emergency response to the hurricane-ravaged Gulf Coast. In addition to sending an urban search and rescue team (New York Task Force 1) to Mississippi, New York government officials are also urging New Yorkers who want to help to make donations to charities such as the American Red Cross, the Salvation Army or the Mayor’s Fund to Advance New York City (which gives the donations to disaster relief agencies).
"We have all seen the devastating images of the damage that Hurricane Katrina has caused in the southeast United States. Our thoughts and prayers are with all the people in the area who have been impacted by this disaster, and we are eager to do everything possible to help. New Yorkers will never forget the extraordinary support we received following the dark days after 9/11 and how much it meant to our City."
The race for Public Advocate is heating up, with challenger Andrew Rasiej inviting his rivals - including Norman Siegel, Jay Golub and Betsy Gotbaum - to participate in a series of "People's Debates" in all five boroughs. (Thus far, only Gotbaum has not committed to participating in the debate, claiming that she has already fulfilled the two-debate quota mandated by the city's campaign finance law.) As one might expect, given the Rasiej campaign's focus on technology, the debates will be streamed via the Internet for any interested voters, says the New York Daily News.
The New York Times takes a closer look at the makeover of New York Magazine, which will kick off with the magazine's first advertising campaign in almost eight years. The new million-dollar campaign is noteworthy, if for no other reason than it will "change contents almost every day":
"The centerpiece of the campaign, which carries the theme "This is New York," will be posters at five subway stations in Manhattan that are to be replaced each weekday. (The poster pasters will get a break on weekends.) ... Many of the posters, scheduled to appear from Friday through Sept. 30, will be related to events of the day or week they are to run. For instance, as the Red Sox arrive in the Bronx on Sept. 9 to play the Yankees, the posters that day are to present the results of the teams' previous meetings this season - with space to write in the score of the game that night."
In addition to ramping up the subscriber lists, the ad campaign hopes to woo back magazine advertisers, many of whom have embraced the Internet. The changing daily nature of the New York Magazine ads, one supposes, is a way to mimic the ease of changing ads on the Internet. The ads will also highlight a rebranding of the magazine's Web site to newyorkmagazine.com, from newyorkmetro.com. That old URL for New York Magazine was kinda annoying, come to think of it.
New York Times op-ed columnist Paul Krugman, though, begs to differ. According to Krugman, "Greenspan's words of wisdom come too late. He's like a man who suggests leaving the barn door ajar, and then - after the horse is gone - delivers a lecture on the importance of keeping your animals properly locked up."
There's understandably a lot of bad blood about the New York Stock Exchange's decision to merge with electronic rival Archipelago, but this is out of control... Crain's New York reports that a member of the Big Board has been arrested for allegedly threatening another member who was suing to oppose the pending deal. The incident happened in July, when there was a call made threatening to blow up the victim's car in retaliation for opposing the NYSE-Archipelago merger. The caller - who has a history of being a hothead - has been charged with one count of aggravated harassment.
The New York Daily News asks: With Howard Stern moving to Sirius Satellite Radio next year and more radio listeners making the jump to satellite, what will become of the broadcast radio airwaves in New York City? In fact, says the Daily News, New York radio "faces its last great wakeup call" as it responds to changing technologies, changing consumer tastes, and changing radio formats.
On a related topic, MSNBC (via Hollywood Reporter) has more details on the new channel lineup at Sirius Satellite Radio, which will include two (count 'em, two!) Howard Stern channels. If you don't like the notorious shock jock, don't worry... Sirius also plans to offer five "family and kids" channels - as well as three Christian music channels - for listeners with decidedly different tastes.
Ubiquitous laptop computing is coming to the Upper West Side -- at least for a select group of approximately 420 Manhattan school kids who will be receiving free Apple and Dell laptop computers as part of an innovative new program being rolled out by NYC Council Member Gale Brewer. The program is called "One-to-One in Ten," referring to one laptop for every schoolchild in the New York City Department of Education's Region 10. It's the first 1:1 program of its kind ever attempted in New York City, and is scheduled to be rolled out in seven middle schools on the Upper West Side just in time for the start of the new school year. (Apparently, there have been other attempts at 1:1 laptop programs in New York City, but none that have had both grassroots and administrative support and that cut across grade levels.) The price of the program isn't cheap - $787,000 (including close to $400,000 that will be raised from corporate donors) - but is indicative of what can happen when educators and government officials get together on the same page of the educational playbook.
The 1:1 laptop program is all part of what educators refer to as "total technological immersion," as students reap the benefits of toting around a laptop, both in school and out of school. With the aim of offering ubiquitous laptop computing, the program will also attempt to offer students free or low-cost broadband Internet connectivity at school and at home, so there won't be any excuses for not focusing on schoolwork 24/7. In other words, no more "the dog ate my broadband Internet connection" excuses. Kids from lower-income homes will now be on an even footing with their classmates from wealthier neighborhoods. As Councilwoman Brewer explains, "It is a model project to address the digital divide in the city."
In addition to improving school performance, the program also hopes to lower rates of absenteeism and decrease the incidence of disciplinary problems. In addition, who knows? Maybe parents will take more of an interest in their child's education if there's a laptop laying around the kitchen...
WNBC carried the second Public Advocate debate Sunday morning, in which three challengers for the Public Advocate position (Andrew Rasiej, Jay Golub and Norman Siegel) took on incumbent Betsy Gotbaum for an hour of informal debate. What was surprising, perhaps, was that Andrew Rasiej was the only candidate who even mentioned what role technology could play in making the office of the Public Advocate more efficient, more productive and more powerful. After a laudatory op-ed piece in the New York Times praised Rasiej for his visionary Wi-Fi plans for the city, you would think that at least one of the other challengers would attempt to co-opt this theme.
As many readers of this site know, the Andrew Rasiej campaign has been front-and-center in promoting technology as a way of empowering everyday New Yorkers to solve their problems and deal with New York's massive bureaucracy. The public advocate, by promoting ideas like a citywide wireless Internet network, could act as a more powerful watchdog over the Mayor and the city agencies, enabling everyday citizens to have an active stake in what happens at City Hall.
Overall, the debate raised a number of significant issues about the scope and scale of the Public Advocate's office. One thing became clear within the first 25 minutes -- Andrew Rasiej is the only candidate who has done any serious thinking about the role of technology (namely, wireless Internet access for the entire population of the city) in overcoming the shortfalls of the Public Advocate position. Most New Yorkers don't even know what the position is, or that the Public Advocate would become acting mayor if (god forbid) something ever happened to the Mayor.
The New York Times has another story about "cool things to do with an iPod" -- this time, it's downloading sermons to an iPod for future listening in the car, at the gym or anywhere else. It's all part of what some men of the cloth are calling "Godcasting." According to the Times, the trend is catching on nationwide:
"Just as Christian organizations embraced radio and television, podcasting has quickly caught on with religious groups. Since the beginning of July, the number of people or groups offering spiritual and religious podcasts listed on Podcast Alley has grown to 474 from 177."
The New York Post reports that Microsoft is sniffing around Times Square for a new retail store location:
"Microsoft is on the prowl for a store in Times Square. The move would be the software giant's first big stab at retail and may be an attempt to play catch-up with archrival Apple, which has hit a home run with its own branded stores, including its New York City flagship in SoHo. Microsoft is looking for a large space to create a "branding experience" a la Apple's showroom and information center."
The most likely venue for a new Microsoft store, say analysts, is One Times Square -- the building where the New Year's Eve ball drops each year.
Fortune looks into the myth and reality of the skyscraper curse. If you believe in the curse, then it's time to start packing your bags. After all, four media giants (the New York Times, Hearst, Bertelsmann and Bloomberg) are busy erecting huge new midtown skyscrapers in an orgy of vertical capitalism. If the past is any indication, it will all end badly:
"It's an architectural extravaganza - a spectacular display of money, power, and hubris. But if history is any guide, companies that build such monuments tend to do so at the peak of their power, when they are convinced they'll always cast as long a shadow over the business landscape as they do at that moment. All too often, though, they build these shrines to themselves on fundamentally shaky ground."
Don't believe it? Well, check out the "Skyscraper Index" created by Deutsche Bank research guru Andrew Lawrence. According to this index, the world's tallest buildings have been constructed before the onslaught of major economic downturns.
Keep in mind, too, that ground was broken on the $1.8 billion HQ of Time Warner in November 2000 -- two months later, the company announced its infamous merger with AOL, and the rest, as they say, is history. Another company building an imperial headquarters that crumbled faster than you can say "AOL Time Warner."
This made the front cover of the New York Daily News on Saturday: a cellphone snapshot of the subway pervert. It all started when a "smirking sicko" exposed himself to a 22-year-old girl on an uptown R train. The girl responded by "reaching for her secret weapon - her camera phone." After that, she took her story to cyberspace:
"She posted the degenerate's photo on the Web sites Flickr and Craigslist, and bloggers began linking to her site. Her photo and story drew a few juvenile snickers, but most of the comments have been positive... The NYPD, which confirmed [the girl] had filed a complaint, also was impressed."
Terence Bradford is a Citigroup banker by day, hip-hop performer by night. He goes by the stage name of Billy Shakes and is out to inform lower-income youth about the importance of understanding personal finance and planning for the financial future. Divine Cipher picks up on the story from Fortune magazine: "This is a cat who came out of Castle Hill Houses projects up in the Bronx to become first a stock broker and now a sales manager for Citi Mortgage... The idea of using Rap to spread the gospel of financial and economic self-determination or to flip the idea of what wealth really is, is a dope idea."
"You can listen to news from The Wall Street Journal on SIRIUS Satellite Radio. Get hourly updates during the business day with The Wall Street Journal Report and Dow Jones Money Report. You can also tune in to The Wall Street Journal This Morning every business morning..."
Yo, Osama, take a look at this: the NYPD has just added two high-powered sniper rifles to its arsenal. It's all part of an effort to beef up protection of the area's ports and waterways. Make no mistake about it, these weapons are ready to rumble -- each rifle is five feet long, weighs 37 pounds and can probably pierce an armor-plated tank at long distance. CBS News calls the rifle "without a doubt, the most powerful weapon you can buy." The New York Post has the details:
"The .50-caliber rifles — each selling for $10,000 and using 6-inch bullets that cost $4 a pop — were bought several weeks ago after months of tactical wrangling by Commissioner Ray Kelly and his top brass over whether the controversial weapon was needed in the Big Apple. The rifles can be fired from a police helicopter and pierce the hull of a boat to stop it from a distance of 1,000 yards..."
Today's New York Post has the story of a recent MBA grad who's trolling for new jobs by wearing a full-length sandwich board and walking up and down 42nd Street. Hey, if this tactic works for midtown strip club promoters and "Going Out of Business" stores, maybe it'll work for an MBA. In an act of mercy, the Post provides readers a URL for contacting the well-intentioned (and apparently, well-qualified) MBA grad.
As reported last week, the Republican party is trotting out William Weld as a potential challenger to Eliot Spitzer in New York's 2006 gubernatorial election. Weld is the former governor of Massachusetts, but has little or no name (or face) recognition in the Empire State. Sure, he's buddies with Rudy Giuliani and other members of the Republican administration, but in New York, at least, he's terra incognito for many voters. What marketing campaign will Republican strategists dream up to promote William Weld for 2006? Word on the street is that Weld plans to raise between $40 million and $75 million for the gubernatorial bid, and that will buy a lot of airtime.
Maybe Mr. Weld should consider a a Snoop Dogg promotion, similar to the one that the famed rapper has with Chrysler's Lee ("Mocha Cocca") Iacocca:
"The 80-year-old Iacocca and Snoop Dogg, who made his name rapping about sex and marijuana, appear as golf buddies in the ad, scheduled to begin airing Saturday. Snoop Dogg wears an argyle sweater vest, while Iacocca dons a pastel plaid hat. At the end of the TV spot, Snoop Dogg says: "If the ride is more fly, then you must buy." Iacocca responds: "That's what I hear."
Ad Rants explains why the pairing of Iacocca and Snoop Dogg is so successful:
"With the usual old guy/young rapper dude culture clash, the post hopes to appeal to those under 40, many of whom have no idea who Iacocca is."
We're big Netflix fans around here, and so it was interesting to find out that Netflix subscribers from around the country have been attaching yellow Post-It notes to the Netflix DVD return envelope. According to these images from Hacking Netflix, the messages range from the whimsical ("Free Winona") to the inane ("They sure do drive fast in Sin City"). Many may view these "notes to Netflix" as a waste of time and energy, but it's always interesting to see how people attempt to personalize a service or product offering that they love. Somehow, I don't think people are attaching yellow Post-It notes to Blockbuster DVDs...
Podcasting is really going mainstream, if this story from Joe Mandese of Media Post is any indication:
"In a development that may say as much about the future of radio broadcasting as it does about the future of media audience measurement, Arbitron announced that its new portable people meter (PPM) system could successfully track podcasts. While the ultimate potential of podcasts--listener-generated radio programs distributed over the Internet--may be debatable, the technology is one of a progression of digital media applications that are transforming how, when, and why people listen to the medium, and are requiring both radio broadcasters, and the company that measures their audiences, to become more resourceful."
Apparently, it's now possible to track how often podcasts are played using an MP3 player such as the iPod simply by hooking up a "portable people meter" to the headset. Big broadcast radio companies like Clear Channel and Infinity Broadcasting have already started podcasting, and quite obviously, want a way to track these podcasts once they've been downloaded to an iPod.
As almost everyone knows by now, The New Yorker turned into a giant Target ad in its August 22nd issue. Shocked by Target's audacity, The Chicago Sun-Times could only sputter out a scathing review of the unique advertising/editorial collaboration:
"It can only be described as the most jaw-dropping collapse of the so-called sacred wall between editorial and advertising in modern magazine history. And it happened this week -- of all places -- at arguably the country's most prestigious magazine, the New Yorker. In the wake of a puff piece by New York Times advertising columnist Stuart Elliott last week announcing Target had cut a deal with the New Yorker to become its sole advertiser for the magazine's Aug. 22 edition, copies of that issue began arriving in mailboxes and hitting newsstands this week. Now we can see exactly what the results of that deal are: A 90-page publication where it is almost impossible to discern any line of demarcation between Target's advertising and the New Yorker editorial product."
Since the Target ads are not on The New Yorker Web site, we turn to Fimoculous for the visuals: the site has a whole collection of full-color pictures from the issue. In addition, Fimoculous tallied up the damage from Target's "advertising chutzpah":
"The NY Times says Target paid around $1.1 million, for which I count 14 full-page spots and 8 one-third pagers. True to the discount retailers motto "Pay Less, Expect More," one observer found 200 Target logos in the first 19 pages of the mag."
The New York Times has more on the city's decision to build a wireless voice and data network for the underground subway system. If all goes according to plan, that means your cellphone will work underground sometime within the next decade, just like it already works in Hong Kong and Seoul. The MTA is already starting to solicit bids for a 10-year contract that will be worth anywhere from $50 million to $100 million. All the usual suspects -- Cingular Wireless, Verizon Wireless, Sprint Nextel and T-Mobile - are lining up at the public trough, hoping to win the mandate from the MTA. Final bids are due October 12, so that gives these companies about 6 weeks to come up with the winning bid.
Gothamist weighs in on the announcement with a bit of amusement:
"The possibility of using cell phones underground leads to many questions: Will cell phone kiosks start popping up underground? Will illegal vendors peddling their wares now include ones selling cell phone tchotchkes? Will the kids "selling" M&Ms for their school basketball teams be unwitting victims of straphangers yapping on the cell phones? Will there be even more cell phone thefts? And yes, our ears, our ears! We'll be subjected to those travelogues we hear on surface trains and as soon planes land, "Yeah, I just landed...wanted to see what was up... yeah, the flight was okay..."
It's almost time for the start of the U.S. Open in Queens, so it's time to start thinking about tennis... In today's print edition (link from the Pittsburgh Post-Gazette) , The Wall Street Journal looks at the latest advances in materials and design in the U.S. tennis racket market:
"Head, Prince, Babolat, Wilson and Fischer are among those featuring nanotechnology, magnetic forces, aerodynamics and advanced physics principles in their new rackets, which claim to help players add power and precision to their strokes."
Apparently, most of the high-tech advances are driven as much by marketing needs as by the real need to produce more power or control in the racket. The number of tennis players has not changed much in the past five years, and sales of tennis gear are down from levels ten years ago. So what do you do when the size of the market is not increasing? Gotta promote things like "piezoelectric crystals" and "carbon nanotubes" to make people buy more rackets.
ZDNet has details on the $600 million Vonage IPO -- the surest sign yet that the area of voice-over-Internet communication is hot. Make that sizzling hot, considering that Google is jumping into the market. The Edison, NJ-based company did not provide any juicy details on the offering, but that hasn't kept bloggers from speculating about the ramifications the deal. Suffice it to say that the company has already raised $400 million in VC funding and now provides close to 800,000 U.S. households with Internet-based phone connections. With another $600 million, the company will be able to blanket the airwaves with its "People Do Stupid Things" commercials.
Over at Gigaom, Om Malik has assembled blogosphere reaction to the deal, with Mark Evans noting that the company probably made a "strategic mistake" by waiting too long to do the IPO, while TechDirt questions why the company needs to raise so much capital. Om Malik also weighs in:
"I find the timing of this news pretty interesting! There is clearly lots of competition, including cable companies which are just cranking their sales machine and pushing VoIP like crazy. Skype, Yahoo, Microsoft and Google’s Voice-over-IM offerings are going to put some if not a lot of deflationary pressure on the prices. Price pressure is going to be rampant. Good time, to re-read my Telecom Death Spiral essay. And that’s not even taking into account some of the problems incumbents can create for all indy-VoIP people (without risking the ire of FCC, of course!)"
While we stopped reading the New York Press after the paper's "Death of the Pope" fiasco, we still happened to stumble across the paper's list of its "50 Most Loathsome New Yorkers" via a del.icio.us tag. The New York Press list, composed about five months ago, includes a handful of writers and bloggers who were singled out for their, well, loathsomeness.
There's Nick Denton, publisher of Gawker, who came in at #38:
"Though far from a pioneer, Franken-headed Gawker Media emperor Nick Denton takes partial blame for the dubious distinction of introducing the word "blog" to grandmothers in Dubuque. Denton single-handedly sandbagged and snarked his way to a post-crash brand of media-mogul-dom through his ubiquitous cultural blogs—Gawker.com, Fleshbot.com, Wonkette.com—while letting his lowly writer drones peck away all day for Birkenau pay rates... Denton has been secretive about the income he made off of his blogger slaves; writers and editors looking for stories about his alleged riches are, he says, "obsessed, and disoriented: nostalgic, cynical and now, with the revival of independent web media, daring to dream again."
And, there's Weblogs Inc. impresario Jason Calacanis, who came in at #23:
"During the dotcom boom, Jason Calacanis was one of those floppy-haired internet hucksters who beat the drum so loudly for tech companies that he became one of the era's major figures. The New Yorker even commissioned a fawning profile when he was editor of the now-defunct Silicon Alley Reporter. Now Calacanis is back and shamelessly beating the drum for (guess what?) blogs. Calacanis is chairman of Weblogs Inc., which now hosts more than 70 blogs about, well, who the fuck knows? His is a blog company that will make money from advertising while allegedly paying his army of typers a pittance in a "partnership" that promises a payday from future earnings."
We just hope that The New York Press, under the tutelage of new editor Harry Siegel, is more readable and less mean-spirited than it has been for the past two years.
If you saw Scorsese's "The Aviator" last year, then you know that billionaire inventor Howard Hughes developed an obsessive-compulsive order when it came to germs. Surely, he never would have taken a ride on the New York City subway, which isn't exactly known for its cleanliness. Well, there's a company in Boston that has created the perfect subway "transit strap" for anyone who's ever had a bout of Howard Hughes-style obsessive-compulsiveness:
"Our premium quality products dramatically enhance a public transit experience. The patent-pending TranStrap™ provides a comfortable, hygienic, personal
handhold that securely grips the overhead bar yet goes on and off easily and
stows in a purse or pocket."
There's a manhunt on Wall Street tonight. No, it's not a promotion for some reality TV snuff film -- it's a game of urban hide-and-seek taking place at 9pm tonight on Wall Street after all the bankers and traders have gone home. Newmindspace has more on the Wall Street manhunt:
"Manhunt! The totally regressive game of hide and seek with a run-like-mad urban flair. We invite you to join us on Wall Street, to run among cobblestones, winding paths and echoes of the original Dutch colony of New Amsterdam. Hide behind pillars and sprint down brick alleyways, evading capitalists among skyscrapers for a night of summer joy."
Voice communication over the Internet -- in all of its various forms -- is hotter than ever, says The Wall Street Journal:
"Just when the rise of email and text-messaging began eroding traditional phoning, voice communication is staging an online comeback -- in a variety of unlikely ways. Facilitated by broadband Internet connections, computer users are talking to each other as they play games, arrange dates and conduct business. All of these activities are available now because advancements in digital technology have made it possible to transfer voice in information packets, just like an email."
Of course, if Google is doing it, it must be hot, right? On Tuesday, Google announced a plan to enable Internet users to make phone calls over personal computers, using only a headset. And, of course, there's Skype and Vonage.
Anyway, one of the companies mentioned in the article is Vonex LLC, a Brooklyn-based company working on a platform to make it easier for online gamers to use voice ("voice over internet gaming"). Yo, a big shout out to Brooklyn.
According to the New York Times, Conde Nast Publications plans to start a new business magazine and Web site -- despite the fact that the advertising market has been in the doldrums for rivals like BusinessWeek and Forbes. Leading the charge at Conde Nast will be Joanne Lipman, formerly the deputy managing editor of The Wall Street Journal, and David Carey, publisher of The New Yorker magazine (a Conde Nast publication).
While Conde Nast has plenty of firepower to make the new magazine a success (Carey was one of the creative forces behind SmartMoney magazine and Lipman has 22 years of experience at the WSJ), many analysts are skeptical:
"A lot of the traditional business books are still struggling. It is a crowded cluster of magazines of which there are some underperformers. So it is a curiosity."
Conde Nast's move into the world of business was so stunning that even Fishbowl NY - usually never at a loss for words - was left speechless. Conde Nast, after all, is better known for chick mags like Glamour and Lucky, and not at all for hard-hitting business coverage.
IBM has created a new seven-person venture capital advisory council to "help accelerate innovation in deploying open standards-based solutions, especially for emerging markets around the world." According to IBM, it's important to back open standards in key emerging markets such as Brazil, Russia, India and China. In addition to supporting open standards-based solutions, the new VC advisory council at IBM will also "continue to identify and develop new partnership opportunities to best help the hundreds of new and innovative start-ups that arise in these countries every day." For example, IBM would be ready to back a start-up company in Moscow or St. Petersburg developing a Linux-based software solution.
When we heard that the MTA was spending $212 million to install surveillance cams in the New York subway, we immediately wondered if there was some kind of geeky joke in there somewhere. 212, after all, is the area code for Manhattan.
Keep in mind that when Google decided to raise money in its IPO last year, the company's founders settled on the magic number of $2.718 billion for a reason:
Then, when Google announced that it planned to offer more shares to the public, it settled on the magic number of 14,159,265 shares for obvious reasons:
"And why, oh why, the strange numerology -- selling exactly 14,159,265 shares, which every educated 13-year-old recognizes as the digits to the right of the decimal point in the mathematical term pi."
Adam Balkin of NY1 reports on a new computer center on Manhattan's LES that will bring computers and Internet access to lower-income and homeless New Yorkers. According to the head of the new computer center, there will be 13 Internet-ready computers and a number of printers that will be available free of charge to any member of the local community. A big hat tip to Computer Associates for coming up with a $30,000 grant for Nazareth Housing to get the center up-and-running.
NOTE: The article says that the computer center is on the Lower East Side, but a little fact-checking only turned up an address in the East Village. Anyone know for sure which is correct?
Apparently, a Russian neuropsychiatrist at Columbia University has pioneered a groundbreaking insomnia remedy known as brain music therapy. And, no, it doesn't involve a bottle of Stolichnaya or a trip to a Russian banya. Barbara Hoffman in the New York Post describes how the sleep technique developed by Dr. Galina Mindlin at Columbia University works:
"Developed a decade ago in Russia, it involves recording the brain's electrical activity, or brain waves, via an EEG, during a time when you're most relaxed — and transforming those same waves into synthesized musical sounds, which are recorded on a CD and played back at bedtime... The theory is that listening to your brain at rest helps your mind to relax into sleep."
On page 10 of today's Metro newspaper, I've written an op-ed piece on New York's biotech sector: "Can we really become a biotech powerhouse?" About two weeks ago, the city announced plans to create a sprawling, $700 million biotech center, accompanied by much fanfare about New York's innovative vision for the future. However, can New York really become a leading biotech hub without a major commitment to stem cell research?
"The announcement on August 10th that New York City would create a biotech cluster known as the East River Science Park was surely good news for those hoping that New York can further diversify its economy by tapping into the nearly limitless growth potential of the biotech sector. After all, New York already boasts a number of top-ranked hospitals, medical schools and research institutions that provide the fundamental basis for developing a world-class biotech sector. In addition, the city boasts a deep pipeline of medical and biotech talent that includes a number of Nobel Prize winners. However, there’s still one missing ingredient if New York ever hopes to realize its potential of becoming a major world-class biotech hub: a major stem cell research initiative, similar to the one passed by California last November."
According to the New York Times, Verizon is making a pre-emptive strike in the city's broadband Internet market, offering a watered-down version of its DSL service at half-price ($14.95). The new DSL service will be 10 times faster than dial-up, but only about one-fourth that of Verizon's main DSL service, which costs $29.99. The half-price offering is intended as a way to entice dial-up Internet users to make the move to broadband -- and to win over these customers before cable providers snare them:
"Every dial-up customer we convert to D.S.L. takes one customer off the table for cable modem. We have a price for every budget."
In a related announcement, the company unveiled plans to form a marketing alliance with Yahoo, which has created a Web portal for Verizon customers.
The New York Times is reporting that the MTA is close to signing a $200 million deal with Lockheed Martin to create a comprehensive security system for the city's bridges, tunnels and subway stations:
"According to people with knowledge of the talks... Lockheed Martin will lead a team of contractors in creating an "integrated electronic security system" that will include closed-circuit television cameras, motion detectors and "intelligent video" software that can automatically determine if a package has been left on a train or if a person is in a restricted area."
Joining Lockheed Martin in the deal will be a number of other contractors, including Rochester-based Lenel Systems International and Sweden's Slattery Skanska.
According to the article, the same Lockheed Martin unit has been hired by the governments of Albania and Uzbekistan to work on large-scale security projects. Hey, if it's good enough for Albania, it's good enough for New York City.
With gas prices expected to continue on their upward trajectory through the Labor Day weekend, now's the time to turn to Web Sites like GasBuddy.com and GasPriceWatch.com for tips on finding the cheapest gas in the city. While Mayor Bloomberg says that he has our backs when it comes to holding gas under $3 a gallon, New Yorkers still need to do what they can to search out and find the cheapest gas around.
So where on the Upper East Side can Mayor Bloomberg find a cheap gallon of gas? Outside of Gracie Mansion, a gallon of regular sells at about $2.75. If the Mayor is willing to walk up to East Harlem, though, he can get the price down to $2.55/gallon. (Go to GasPriceWatch and type in Gracie Mansion's zipcode: 10128).
"An enterprising software engineer has combined the popular "dating" Web site Hot-or-Not with Google's new map program, creating a new Internet "mash-up" of the two services which allows users to search for hotties by ZIP code."
Users can enter any U.S. zipcode to find people who are rated "hot" by the site HotorNot.com. A Google map then appears with a collection of balloons that link to the person's picture, zipcode and links to more information. Caution! This is definitely a time-waster at the office...
Crain's New York profiles a number of new online banking ventures in New York, including new offerings by New York Community Bank and HSBC Bank USA. The increase in competition for online accounts is good news for consumers, who are already benefiting from higher rates on their savings accounts:
"The Internet surge has created a dogfight over savings rates. Last week, MyBankingDirect.com raised its money market interest rate to 3.75%, eclipsing the 3.5% offered by Emigrant Direct and HSBC. All three also far outpace rates offered on traditional accounts."
Moreover, online accounts are a tremendous enabler for smaller banks that are competing with giant banking institutions. In response, larger banks like Citibank are testing new Internet-only accounts that offer high yields to consumers. In fact, says one research analyst, "Ten years down the road, most of the major banks out there will have something like this..."
Looking for some tips on how to present data for that upcoming PowerPoint presentation? Edward Tufte will be in Manhattan from September 27 - 29 to offer a one-day course on "Presenting Data and Information." The Boston Globe has called one book by Tufte a "visual Strunk and White," while PC Magazine has called the same book "a touchstone of style." Tufte has also written a famous essay on how PowerPoint affects thought. For examples of his work, check out Tufte's Web site.
Disclaimer: We're not getting paid by Tufte to do this -- we like him because he's both a Tiger and a Bulldog. That not enough? The New York Times has called him "the Leonardo da Vinci of data." The guy has a master's from Stanford, a Ph.D from Yale and seven honorary doctorates. Plus, he's a fellow of the American Academy of Arts and Sciences and has received fellowships from the Guggenheim Foundation and the Center for Advanced Study in the Behavioral Sciences. In other words, he's a heck of a lot smarter than you'll ever be.
Long Island-based OSI Pharmaceuticals will acquire Eyetech Pharmaceuticals, which has offices in Times Square, for approximately $935 million in stock and cash. OSI Pharmaceuticals specializes in cancer treatments while Eyetech makes the age-related macular degeneration treatment Macugen. According to the terms of the deal, OSI will pay $20 per share for Eyetech, a 43% premium to the stock's closing price of $13.99 on Friday.
Washington Technology reports on a high-tech war game at the U.S. Military Academy at West Point that featured an unusual enemy: Internet scammers. The Wall Street Journal called the exercise "good guys masquerading as bad guys pretending to be good guys." (If you think about the Citigroup ads for identity theft, this makes much more sense) It was all part of a larger effort to make West Point cadets more aware of phishing scams that appear to have originated from a well-known source.
There's clearly a lot of training yet to do -- "We got an 80% click rate on the first test e-mail, sent to 400 West Point cadets... Subsequent exercises with as many as 3,000 cadets produced lower response rates, but the rates did not drop sharply." (In all fairness, though, the phony e-mails included the name of a West Point colonel, and everybody knows that you don't disobey a direct order from a higher-ranking officer)
The top-ranking Internet security official of New York state also reported similar findings in tests of 10,000 state employees in five departments. The government employees were especially susceptible to "spear phishing" attacks, in which the scammers targeted a specific organization. Basically, if people working in the cubicle next to you get the same message as you do, and the e-mail appears to be coming from your boss, it's an easy trap to fall into...
In case you missed it, Blogebrity recently posted an interview with Jason Kottke, an A-list New York blogger who pioneered the move to "contributor-supported" blogging. According to Kottke, the contribution flow has "trickled down to almost nothing," but he still has no plans to advertise on the site.
In a recent issue of Metro, Darragh Worland, who writes the "PillowTalk" column for New York singles, featured TraderDater.com -- the place to meet the hedge fund manager of your dreams: "The world's first
