Responses to Common Objections to Social Media Adoption

Marshall Kirkpatrick wrote a really good article in ReadWriteWeb today in which he talks about the ten most common objections to the adoption of social media and how you can respond to them. Though not an exhaustive list or a complete set of responses, it's a good start to an important discussion on important and highly relevant subject. As Kirkpatrick says:

[This] is just a conversation. Please feel free to add your thoughts in comments and check out the comments to read what others suggest as talking points when faced with these objections.

If you're interested, join in on the conversation. Joe Manna did and, in fact, took the discussion a step further by writing his own top 10 list.

Life! at Yahoo!

As sneak-peaked by Jerry Yang and David Filo at CES yesterday, fun things seem to be happening at Yahoo!. Dan Farber writes about their keynote address on his 'Beyond the Lines' blog at ZDNet:

Yahoo co-founder and CEO Jerry Yang made his inaugural CES appearance, outlining how he plans to evolve his company ahead of the curve and to become an indispensable starting point for consumers’ Web experience, which has become richer and more complex over the last decade. “We call this Life with an exclamation point,” Yang said. “At Yahoo we want to be most essential starting point for your life,” and “take the complexity of the Web and simplify your life through very powerful technologies.”

Basically, Yahoo! is integrating craploads of stuff -- including third party applications -- into Yahoo! Mail and making that the hub for what you do on the Internet.

To me, that's a brilliant idea. Yahoo! Mail is, by far, my favourite webmail service (I've been using it since 1999), and though I now POP my mail from there (some years ago I upgraded to the paid Yahoo! Mail Plus), when I'm not sitting at my laptop, Yahoo! Mail is generally the centre and the starting point of my web browsing experience [1]. In fact, when I'm not on my laptop (e.g. I'm at work) I POP all my other e-mail accounts into Yahoo! because I like it so much. (Can you tell I'm excited by these new developments?)

I'm also a fan of Yahoo! itself. Yahoo! was the first website I visited on the web (back in '96) and I've been using it regularly ever since. I also do most of my online shopping through Yahoo!. Okay, I should stop now. I'm sounding like a Yahoo! fanboy. Still, this is good news and I await further developments.

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[1] For completeness' sake, my non-laptop web experience revolves primarily around Yahoo! Mail, Google, my own Page o' Links, and these days, Facebook.

Facebook Issues: Who Owns Your Data?

Over the last few days there's been a lot of discussion on the 'net on the topic of data portability among social networking sites. It all started when blogger Robert Scoble got his Facebook account suspended for violating Facebook's Terms of Service (ToS). He was running a script (which was the violation) from Plaxo that goes to all your friends' profile pages and collects (scrapes) their contact information from them (i.e. the pages). [He's since been let back in.]

There are a couple of issues here: (1) who owns your contact data, which is the bigger issue and (2) how you are allowed to access it, which is the more immediate issue.

The data ownership issue isn't very clear since you can argue it in different ways and can come up with different, but still reasonable and logical, conclusions. eWeek's Clint Boulton talks about that in more detail in his recent article, 'Who Owns Your Social Data? You Do, Sort of':

Forrester Research analyst Jeremiah Owyang said the issue is a sticky one because according to the terms of use, Facebook owns the data, but many people detest that control.

"Robert is breaking the terms of service, but it's also unclear if he owns those e-mail addresses," Owyang told eWEEK Jan. 3. "People said, 'Yes, you can be my friend,' but they never said, 'Robert, you can take my e-mail address and use it elsewhere.' Some people might feel like that social contract was broken by Robert and Plaxo."

I don't quite agree with Owyang since people probably wouldn't be upset if, for example, I was to copy their e-mail address from Facebook and store it in my mobile phone's address book (which is about as portable as Plaxo's address book is). But, like I said, there are lots of sides to the story.

And then there's the second issue which, for the moment, is more contentious. That's because, while Facebook itself runs an automated script to scrape your contact data from other social media and e-mail sites -- that is, it has a script that will automatically import your data -- it doesn't let you do that the other way round -- that is, it doesn't let you run a script to export your data (to other social media and e-mail sites). And that, people argue, is unfair.

But the thing is: it is Facebook's platform and they can do with it whatever they want. Unless Facebook signs on to Google's Open Social or to the Data Portability project, it has no obligation to make it easy for you to export your data. By the way, doing this is called locking users in since this policy makes it difficult for users to switch to a different service or vendor.

The End of Lock-In?

Dave Winer over at Scripting News argues that this lock-in policy won't last very long in the social media space:

... These companies don't want to empower the users, but if they studied history, they'd see that the evolution of computers always comes in fits and starts. A period when the technology is new and people are snowed by the companies and let them have full control. Gradually people understand what's going on, and figure out they're being screwed but they accept it. And then explosively the whole thing disintegrates in a new layer of technology.

It's a big effin loop we're in. One of these times around one of the companies that feels (incorrectly) that they have a lock on their users, will voluntarily give it up and be a leader in Generation N+1. I've never seen it happen, but in theory I think it could.

And he's right. Remember the days when you couldn't transfer your e-mails or your address book between e-mail clients? Or when you couldn't export your browser bookmarks to another browser? Or when you couldn't export the news feeds you subscribe to into an XML file and, therefore, couldn't easily switch news readers? Or when you couldn't export your blog data to a different blogging software package or service? In this day and age, data portability and interoperability are key.

As Winer says at the end of his post:

So Facebook has the opportunity to be a crossover company, part of the next generation -- or a last gasp of the generation that's about to run out of gas. It's their choice.

But will it be Facebook that Crosses Over?

Grant Robertson from Download Squad, meanwhile, argues that Facebook will never let you export your data:

... The simple fact is, as the market leader, there is no benefit for or strategic advantage in Facebook making your data available to you in any format you wish. Those are young company ideals; the things you do in the beginning when you're desperate for users.

Open access to data is like the starched shirt, expensive cologne and bouquet of roses you take on a first date; it's a courting display, not a permanent way of life.

Facebook won't offer you open access to your data for one simple reason; if they did, they couldn't compete. They aren't innovative, they aren't the first mover, and they don't have a stable of hot talent designing any "next generation" of the social web. Facebook is simply a company that was in the right place at the right time, with a lucky strategy which happened to work.

In his opinion, it won't be Facebook that "opens up" your data:

So, whatever side of the debate you find yourself falling on, remember this. If the data wars truly have begun, victory won't come in the form of an "open" Facebook; it will come from a new generation of services who fail to find an exit strategy from their own courting ritual.

I guess we'll just have to wait and see which side of the fence Facebook falls on.

As for myself, I try to rely of Facebook as little as possible because I tend to agree with Robertson: Facebook will not give me easy access to my data to with as I please. At least not in the short term. As a result, I try to minimize my serious conversations and discussions (i.e. the kind I'd want to archive and maybe refer to later) on Facebook. In fact, whenever possible, I try to e-mail people so, at the very least, I have a way of contacting them outside of the Facebook platform.

That said, I am hopeful that, over the next year, things will change and that social media user data will become a lot more portable and/or a lot more interoperable. Here's hoping.

Why the US News Media is, well, Crap

John Hockenberry, a former NBC Dateline correspondent, writes a fascinating article in the January/February 2008 issue of MIT's Technology Review in which he talks about how the US news media actively chooses to go with emotion-centred news stories (that appeal to as many people as possible) as opposed to more relevant, hard-hitting, and (dare I say) real news stories.

Networks are built on the assumption that audience size is what matters most. Content is secondary; it exists to attract passive viewers who will sit still for advertisements. For a while, that assumption served the industry well. But the TV news business has been blind to the revolution that made the viewer blink: the digital organization of communities that are anything but passive. Traditional market-driven media always attempt to treat devices, audiences, and content as bulk commodities, while users instead view all three as ways of creating and maintaining smaller-scale communities. As users acquire the means of producing and distributing content, the authority and profit potential of large traditional networks are directly challenged.

It's a long article, though, so if you want a quicker version, read what Jacqui Cheng has to say about it over at Ars Technica. Both are great to read, by the way.

Leo Laporte on Social Media

Leo Laporte, of TechTV and TWiT fame (the latter being home to two of my favourite audio netcasts), was one of the keynote speakers at the Blogworld Expo held in Las Vegas in November this year. You can find a video of his excellent keynote speech, with a rather inspirational introduction by Six Apart's Anil Dash, here on In Business TV's Brightcove channel.

Leo talks about the new face of media, where he sees new media going, and what it'll take to get it there. If you have the time, make sure you take a listen. It's a large file and takes a while to download, but it's worth it.

P.S. Apologies for the long hiatus from blogging. The last three weeks of term (including exam week) were really busy and since end of term I've been on vacation. I'm back now and should get back to posting regularly very soon.

Netflix Moves into Online Television

A few weeks ago I talked about how Netflix is planning to move into the online video space. Well, it launched its first big foray into that this week by signing up with NBC Universal (press release here). Netflix subscribers will now be able to watch NBC's shows (like "Heroes" and "The Office") on Netflix the day after they're aired. All this is only for the US, of course.

Meanwhile, this now becomes the third distribution channel that NBC has signed up with (post iTunes) in order to distribute its content. The fourth is still in private beta. Last 100's Daniel Langendorf is keeping score.

Things I Detest About Facebook

I haven't really weighed in on the social media sites are bad vs. social media sites are good debate. Nor do I intend to...especially the whole Facebook bashing and Facebook worshiping debate. Everyone else is already doing enough of that for my liking, thank you.

Still, when Hugh MacLeod from gapingvoid posted the following sentiment on his blog, I had to jump in and agree with him:

So what's stopping Facebook from putting in a small, tickable box that says, "Please do not let my 'Friends' send me any more of these REALLY ANNOYING Vampire/Zombie/Super wall/Super Poke/Whatever invites. I really, really don't want them etc..."?

...

[If] they want to fix the problem, they can easily do so. If they do not, they're sadly just consigning themselves to the slushpile of history.

I couldn't agree more. Those incredibly annoying applications are nice for a while -- like the noisy, roll-up blowouts that you get at parties -- but they get very old, very quickly. I should repeat that. They get very old, very quickly.

Still, "friends" keep inviting other "friends" to sign up for those "applications". A commenter on MacLeod's post said that some blogger had called these invitations "fram", which is "spam from friends". I like that.

I also really like Hugh's Third Law:

"If you piss in the soup for long enough, eventually it stops tasting like soup."

Dream Internship?

Now if only I could have found an internship like this:

Company Name: I Can Has Cheezburger?
City: Seattle
State: Washington

We are looking for upbeat, smart and happy interns to help put moar cheez on the burgers — so to speak. The intern will work on our social marketing, help fulfill t-shirt sales, answer emails from totally random people, bathe Happy Cat (j/k!) and fill in where needed.

Requirements:

* Deep and wide-ranging understanding of popular culture (TV, intertubes, geek, movies, music, games, anime, news…)

* Awsumness. 0.00012 or higher on the Chuck Norris scale.

Please send your resume to:
icanhascheezburger@gmail.com

Word of Mouth on the Web

It's funny how sometimes you just don't connect things. I read about Word of Mouth on the Web (WOMOW) some months ago on Rave About It's Local/Focal blog. It was only today, however, that I discovered that WOMOW was founded and is run by one of my classmates at MBS, Fiona Adler.

WOMOW is "a platform for word-of-mouth information so that recommendations can be stored and accessed to help people find the best local businesses." That is, it's a place where you can find & rate local businesses and give & receive advice from members about local businesses.

I've discovered this service at a particularly good point in my life because my study term is just about finish (one and a half weeks to go!) after which my wife and I will have about three weeks of vacation (she's also on her summer break). We were going to spend this time exploring Melbourne and its surrounds -- have monthly tram card, will travel! -- and WOMOW is the perfect resource for doing that effectively.

For example, we haven't explored Fitzroy as much as we would have liked to. WOMOW will help us plan our explorations better by giving us a list of places that we shouldn't miss and a list of places that we can do without. And if we visit a place that isn't already listed there, well then we'll just create a new listing for it and everyone will be better off.

Ah, I like this whole Web 2.0 stuff (much as I hate the term "Web 2.0" itself).

P.S. How do you pronounce WOMOW, I wonder. Is it Woe-Mao, Woe-Moe, Whommo, or something else entirely? :)  I guess I'll have to ask.

E-Books to Finally Take Off?

Much as I would love to get the Sony Reader (I can't, I don't have enough spare cash lying around) because I think it would be incredibly useful to me, it hasn't done all that well in the market. In fact, the whole e-book concept hasn't gone down well with consumers. At least not as well as, say, Sony would have hoped. (Or as I would have hoped, because that might have considerably reduced the retail price of the Reader, thereby making it affordable to me!)

All that might change, though, with the introduction of Amazon's long-awaited, much rumoured-about, Kindle e-book reader. At least I hope things change. Kindle hasn't yet been launched by the way -- it's supposed to be launched later today in the US -- but it's already being talked about. Notably, in Newsweek's interview with Amazon's CEO, Jeff Bezos, though both CNET and Engadget have talked about it as well.

We learn in strategy that, in many ways, the holy grail of strategic competition is to change the industry (presumably in your favour!). Amazon's already done that a number of times and, through to the Kindle, they're hoping to do that yet again. Being a fan of both e-books and tablet PCs, I hope they succeed.

Expect more coverage (on this blog) of this device and of this strategic move as more details emerge.

More on the WAG Strike

Marc Andreessen recently wrote a post on the strike called by the Writer's Guild of America (WGA) in which he takes media moguls to task over their "[crawling] into a hole of protecting the status quo".

And, if that's not enough, Suicide Girls posted an article that explains, from a writer's perspective, why exactly they've gone on strike. That article tells us a bit about the producer-writer negotiation history and why the current strike is so important to writers today:

This dispute is not just about writers. We are the first union that is fighting for our rights and equal pay when it comes to the Internet. What we do now will affect every union in Hollywood

If you want some solid insight on what's going on -- i.e. the backdrop of the once-in-a-lifetime industry shift that is currently happening and how the WGA strikes fits into that -- read both of those.

Writer's Guild of America Goes on Strike

It's fun when subject matter from two courses converges. In this case, it's my E-Commerce and Negotiations course materials that are converging because the Writer's Guide of America (WGA) has gone on strike, partly over how much they get paid when the shows they write on get downloaded. Nate Anderson over at Ars Technica explains it really well:

No one is Hollywood is quite sure how this whole "Internet thing" will affect the TV and movie businesses, but the writers and producers both know one thing: they don't want to give an inch of ground when it comes to pricing residuals for Internet distribution of shows. After months of fruitless negotiations on a new contract, the Writers Guild of America announced publicly today that it would be going on strike, in large part over "new media" concerns. If you thought late-night television wasn't funny now, wait until the writers quit.

Writers get paid "residuals" whenever a show they've worked on or a movie they've helped write gets sold on DVD or aired in syndication, and these residuals can make up a healthy part of a working scriptwriter's income. The Alliance of Motion Picture and Television Producers (AMPTP) insists that the residual rate for new media uses be fixed at the current DVD rate. The writers want the DVD formula—and the new media rate along with it—to be increased.

Our Negotiation's professor, John Onto, has taken great pains to warn us about the dangers of boiling the negotiation down to a single, contentious, value-claiming issue. When that happens, the negotiation becomes a bargain in which one side will always "win" and one side will always "lose" [1]. Unfortunately, that is exactly what seems to have happened here. Oh well. At least it's a good learning opportunity for us Negotiations students!

Footnotes

[1] Unless, of course, a creative, possibly value-creating solution to the deadlock can be found.

Blockbuster Takes Another Hit

I've had an insane week, with three major assignments due, hence my absence from this blog. But, I'm back now...and I have quite a bit to write about. Starting off with some Blockbuster news.

As you might know (if you've read two posts down), my recent E-Commerce assignment was on Netflix. In one section of that assignment we analyzed Blockbuster's entry into the online DVD rentals market; i.e. why it entered, how Netflix reacted, what would happen next, etc. As everyone knows, Blockbuster has a serious problem. Here's how we explained it in our assignment:

Finally – crucially – [Blockbuster] had a retail store mindset. Its online store had a channel conflict with its retail stores and it didn’t want to cannibalize its offline revenue stream (which included lucrative late fees). Because of this, it chose run its online service in conjunction with its stores. This was good because it let them use their stores as mini distribution centers and, from the customer’s perspective, it overcame the problem of spontaneous rentals. But it was also bad because it, not only made their logistics much more complicated, it also reduced their online store’s adoption rate. As explained previously, profits in online rentals are a volume game. Accordingly, Blockbuster’s rental revenues fell by 2.3% from 2003 to 2004. During the same period, Netflix’s rental revenues increased by 85.1% while its number of customers increased by 75.5% to 2.6m. To counter this slower adoption rate, Blockbuster later dropped its late fees for online store users altogether. It also reduced its subscription fees, albeit to seemingly unsustainable levels.

That was our January 2007-based analysis. Since then, of course, Blockbuster has drop its subscription fees.

What has happened since then, though, is much worse. As Don Reisinger from CNET explains it:

According to the company's third-quarter results released Thursday, Blockbuster's revenue slid 5.7 percent and the company harbored a net loss of $35 million. Worse, it has closed 526 stores in the past year, and the number of employees will be reduced to offset high overhead costs to the tune of $45 million. Blockbuster's injured stock price continues to fall and was priced at $5.06 at Thursday's close.

But if that's not enough to signal defeat, Blockbuster Chairman Jim Keyes admitted that his company's focus on Netflix was damaging and has decided to pull the plug on his demand for higher Total Access membership. Instead, he wants Blockbuster to focus on increasing overall membership.

Sorry, Jim, but I think you're out of luck.

Much like the print media and retail stores refusing to change, Blockbuster has been a victim on an online company finding new and inventive ways of bringing a product to a customer. And due to its size and outdated corporate culture, there really is no salvation for Blockbuster at this point. Try as it might, the future of Blockbuster is bleak, at best.

Reisinger gives Blockbuster two years before the company goes under. I think Blockbuster will last longer. Mainly because I think it'll hire some smart MBA grads (probably management consultants) who will figure out a way to radically change its business model, if not the whole company. (And by "radically" I pretty much mean "completely"). At least that's what I would do (or I like to think that's what I would do, should I have found myself in that position). And, judging from his comments, that might just be what Jim Keyes does as well. Let's see.

Netflix's Future Plans

Following on from my E-Commerce syndicate assignment on Netflix -- part of which attempted to answered the question: what should the company do next? -- the CEO of Netflix, Reed Hastings, recently talked about his plans for Netflix's future.

While it was obvious that the company was moving towards expanding its online video offerings, what's fun (and not so obvious at first glance) is that Netflix's strategists are thinking of creative ways to do that. For example, they're thinking of expanding Netflix's online video service on to next generation game consoles (XBox 360, PS3, etc.), networked DVD players, and set-top boxes.

As explained in the Last 100 article that I got this news from, this strategy makes a lot of sense. Getting into content delivery for gaming consoles will immediately give Netflix access millions of new potential customers. The challenge, of course, will be to convince game console creators -- i.e. potential "partners" like Microsoft and Sony -- to sign up. Especially since both Microsoft and Sony have announced their intentions to create their own online video networks (dubbed "entertainment hubs"). At least Hastings is clear on the fact that all of this will take time.

Regardless, it should be fun to see how things pan out over the next few years.