Randy Weber

Back in December 2006 I wrote about TiVo not keeping up in the quest to be the provider of the “sofa web.”

Om Malik at GigaOM discusses the new game consoles and the contribution they might make to Internet browsing. He refers to it as the “sofa web.”

It was announced that TiVo and Amazon Team Up - NYTimes.com. This is a positive step towards TiVo becoming part of the sofa web. I can’t wait to see more deals.

Yes, Yahoo lost out on search and PPC advertising to Google, but they’re beating everyone else. I’ve always been told that there’s room in the market for 2 dominant players. Yahoo is number 2.

But more to the point, there’s more going on at Yahoo than just search and PPC advertising. Danny Sullivan at Search Engine Land has written a great piece on where Yahoo stands as a whole.

Kick-Ass Properties: Yahoo has fantastic properties. Time magazine this week awarded Yahoo two of the 10 picks for its “10 Essential Sites” special feature. Yahoo Finance and Flickr both got nods. No other company got recognized more than once (for the record, the others were Wikipedia, Craigslist, ESPN, Yelp, Facebook, Digg, Google, and TMZ. And yeah, I know, some of those hardly seem essential. And hey Time, next time give me one frakking page listing everyone. Geez!).

Let me add to Time’s picks a few more properties that do well for Yahoo. Delicious. Yahoo Answers. Yahoo Mail. Yahoo News. Oh, Yahoo Search. All of these are either the leaders or strong players in their categories.

There’s more, so click over to the article to see what else Yahoo has going for it.

The Kelsey Group wrote about something that was best left dead: the CueCat. In Quick Response Bar Codes Invade Yellow Pages the concept is that small bar codes can be inserted into print ads and scanned by mobile phones to link users to information over the Internet. The problem is that this has been tried and failed. I still have an old CueCat lying around the house. My former employer, Verizon Directories, actually participated in the CueCat debacle.

MarketingVOX points us to a ComScore study that claims most traffic to US sites comes from outside of the US. This certainly came as a surprise to me. The lessen to be learned here is that US marketshare numbers are not always as they appear. I hope that the major ad networks are crediting the accounts of advertisers that are purchasing geo-targeted ads.

Fred Wilson at Union Square Ventures wrote a piece about Business Development 2.0 which he pretty much defines as biz dev via APIs. It sounds good, but isn’t a viable long-term solution.

Using the strategy put forth by the author, a start-up would be building a business around content and traffic from third parties and monetizing everything via Google AdWords or some other advertising network. Examples cited by the author include:

* YouTube makes it flash video player available via embed code on MySpace and their traffic takes off.
* TripAdvisor search engine optimizes its service and becomes one of the most popular travel services.
* Technorati hits delicious’ api for its tags and builds the web’s most succesful tag search service.
* Indeed crawls the Internet for jobs and builds a popular job service overnight.
* Kayak crawls the Internet for flights, hotes, and cars, and builds a popular travel service overnight.
* Qoop takes Flickr’s API and builds a Flickr printing service without ever engaging with Flickr’s team.
* Netvibes takes a few RSS feeds and builds a start page that looks as complete as MyYahoo overnight.

Nice for a business that has a handful of employees and no expenses, but it isn’t sustainable. Here’s the problem:

1.     No barriers to entry. Anyone can copy your business. Think about the example of the start page. Netvibes is competing with every major portal, as well as start-ups like Pageflakes, webwag, and protopage, with more popping up every day.
2.     No barriers to exit. Users can easily leave your business for the next big thing. Remember Friendster?
3.     Nothing of value is owned. You don’t own the content, nor do you own the advertisers. The eyeballs are yours, but without the content the eyeballs will go away. Without the advertisers, the money will go away.
4.     No control over your own destiny. Being completely dependent on “partners” (I use this term loosely) that have no contractual obligations to each other is dangerous. Content, traffic, or advertising “partners” could cut you off at anytime for any reason, like being acquired by a competitor, entering into an exclusive partnership with a competitor, suddenly viewing you as a competitor, or simply getting mad about something you’re doing with their content. Recent examples include YouTube entering into competition with Facebook, MySpace threatening YouTube, and Craigslist getting pissed at Oodle. If you’ve ever read Google or Yahoo’s terms of service for their advertising distribution programs, you know that they can pretty much change how their program works or cut you off at any time.

Biz Dev Classic may be slower, but it affords much more protection and stability for your business.