Friday, July 17, 2009
Lake Dillon with Keystone resort in the background
Good moorning. Another bluebird day in #breckenridge
Thursday, July 16, 2009
Dinner at Rasta Pasta
2,000 ft of climbing all above 10,000ft
We got into Breckenridge yesterday afternoon after the new gas tank was put in. We got in 3hrs before the local mountain bike race started so I went and rented a mtn bike and jumped in the race. After getting into oxygen dept 10mins into the race I just decided to ride in and enjoy the views. The rental worked out OK, but I couldn't dial in the seat height until I adjusted it 5 times - the full suspension is great, but makes getting the seat height correct a little tricky. The 30 min little ring climb was pretty brutal, but the smooth single track downhill all buffed out and full of wild flowers was amazing. It was the most amazing mountain bike ride I've been on in a long time. I'm glad I did the race.
My favorite ride. The Lake Dillon loop
breckenridge mountain on a bluebird day
Daylight Donuts, a Breckenridge tradition
Wednesday, July 15, 2009
Summit County Mountain bike race
Nothing like going from 1000ft altitude to 10000ft and jumping into my
weakest discipline, mountain bike racing
weakest discipline, mountain bike racing
Flat irons of Boulder
Back on the road
Happiness is a frisbee
Swinging with Abby
Sliding in Boulder
Tuesday, July 14, 2009
Minor set-back
Going to get a new gas tank put in. The van sat for 10 years, so the
tank has rust in it, which is causing the fuel pump and filter to clog. Luckily I found a great shop in Boulder. There are tons of VW vans around town, so Boulder is a good place to get one fixed.
I printed out all the "recommended" VW repair shops along the route thanks to http://www.roadhaus.com/shops.php
tank has rust in it, which is causing the fuel pump and filter to clog. Luckily I found a great shop in Boulder. There are tons of VW vans around town, so Boulder is a good place to get one fixed.
I printed out all the "recommended" VW repair shops along the route thanks to http://www.roadhaus.com/shops.php
Monday, July 13, 2009
Road weary, we made it to Aunt Karen' s
Sierra trading post outlet, Cheyenne
Cheyenne, WY
Sunday, July 12, 2009
Crazy horse
Needles highway
Mom and baby donkie
Sky loved the donkies. They came right up to the car
Rock tunnels
Mt Rushmoore
Deadwood
Mt Rushmoore
Deadwood, SD
Future Sturgis Rider
Sturgis Harley Davidson #VWRT
We found something slower than the VW van
Sky riding the merry-go-round
Skylar riding the Jackalope
My navigator
Saturday, July 11, 2009
#vwroadtrip day 1
We rolled out of town after the Lifetime Triathlon around 12:00pm. My goal was to get to Rapid City tonight, but after 8 hours in the van we were all ready to call it for the night. Skylar was a great passenger as Peggy kept her entertained. Bode loves to travel, so he is really easy.
We decided to leave Laska home and have Peggy's brother take care of her. She is much happier in her old age hanging out at home.
The van drove really well and I was surprised that it averaged 20mpg. I kept the speed at around 65.
Tomorrow we will do some sightseeing around the black hills.
We decided to leave Laska home and have Peggy's brother take care of her. She is much happier in her old age hanging out at home.
The van drove really well and I was surprised that it averaged 20mpg. I kept the speed at around 65.
Tomorrow we will do some sightseeing around the black hills.
Lifetime Triathlon by the numbers - Podium for 3rd place
I decided to go as hard as I could today in each stage of the race. I've been working on my swim and my run...the bike is the easy part. I was over 2mins faster in the swim this year then last (13:12.7 vs 15:33.2) over a minute slower this year on the bike then last, but it was pretty windy today (39:56.4 vs 38:39.6), and over a minute faster on the run then last year (20:46.8 vs 21:50.1)
This year I finished 3rd in my age group, 2 years ago 8th in my age class and last year 5th.
I went as fast as I could on the run hovering the HR around 170-174, once it got into the 175 range I could feel myself exploding. I hopped on some super fast runners and just held on.
The crazy part of my results this year is that I was the fastest in my age group on the run.
Results For:
Jared Roy
Short Course
Bib #: 3709
Age: 40
Gender: M
City, State: St Louis Park, MN
Nation: USA
Race Category: Short Course Age Group - Men 40 to 44
Triathlon Results - Short Course
Finish Time: 1:17:26.6
Category Place: 3 out of 72 Men 40 to 44 finishers
Overall Place: 13 out of 996 Short Course finishers
Gender Overall Plc: 13 out of 487 Male finishers
Triathlon Splits
Swim .4 mile
Time: 13:12.7
Pace: 2:03 /100m
Category Place: 12
Overall Place: 114
Gender Overall Plc: 76
Transition #1
Time: 2:19.6
Category Place: 3
Overall Place: 46
Gender Overall Plc: 35
Bike 15 miles
Time: 39:56.4
Pace: 22.5MPH
Category Place: 3
Overall Place: 8
Gender Overall Plc: 8
Transition #2
Time: 1:10.9
Category Place: 1
Overall Place: 8
Gender Overall Plc: 5
Run 3 mile
Time: 20:46.8
Pace: 6:55/M
Category Place: 1
Overall Place: 22
Gender Overall Plc: 22
This year I finished 3rd in my age group, 2 years ago 8th in my age class and last year 5th.
I went as fast as I could on the run hovering the HR around 170-174, once it got into the 175 range I could feel myself exploding. I hopped on some super fast runners and just held on.
The crazy part of my results this year is that I was the fastest in my age group on the run.
Results For:
Jared Roy
Short Course
Bib #: 3709
Age: 40
Gender: M
City, State: St Louis Park, MN
Nation: USA
Race Category: Short Course Age Group - Men 40 to 44
Triathlon Results - Short Course
Finish Time: 1:17:26.6
Category Place: 3 out of 72 Men 40 to 44 finishers
Overall Place: 13 out of 996 Short Course finishers
Gender Overall Plc: 13 out of 487 Male finishers
Triathlon Splits
Swim .4 mile
Time: 13:12.7
Pace: 2:03 /100m
Category Place: 12
Overall Place: 114
Gender Overall Plc: 76
Transition #1
Time: 2:19.6
Category Place: 3
Overall Place: 46
Gender Overall Plc: 35
Bike 15 miles
Time: 39:56.4
Pace: 22.5MPH
Category Place: 3
Overall Place: 8
Gender Overall Plc: 8
Transition #2
Time: 1:10.9
Category Place: 1
Overall Place: 8
Gender Overall Plc: 5
Run 3 mile
Time: 20:46.8
Pace: 6:55/M
Category Place: 1
Overall Place: 22
Gender Overall Plc: 22
Home sweet home for the night, Kennebec, SD KOA
Skylar and Bode taking their afternoon nap #vwroadtrip 450 miles till Rapid City
Friday, July 10, 2009
Good luck charm from @kareemy for #vwroadtrip
Thursday, July 09, 2009
My new best friend
Wednesday, July 08, 2009
Bike racing is unforgiving
Last night I did the local Tuesday night crit race at the stock yards. This was the first time we have raced at this new venue and the course was fairly tame with orange cones everywhere. My 1st race was the 1,2,3 35+ race. The pace was good and the field was safe. I even took a flyer at one point, but paid for it trying to recover most of the rest of the race. After this race was the 3,4,5 race. I started this race and 3 laps later I pulled out of the race. Having raced now for 17 years you learn how to race, how to corner, how to not yell "inside, inside" trying to pass in a corner when there is no room. As I loose fitness I can hang with the 35+ open race, but can make things happen in a 3/4 race, but at what cost? The 3/4/5 race was so sketchy. People were yelling "inside, inside" and pedals where scraping on every corner. This is why I pulled out of the race - I'm not interested in getting crashed out by someone who doesn't know how to race. I pulled out of the race and 4 laps later I was sitting at one of the corners and heard the pedals scrape as people were pedaling through them, then someone hit a cone and a pile-up occurred and the end result was a broken collarbone.
So, I need to either train harder to ride at the level where the bike handling skills are safer and not sketchy, or hang it up. I'm not going to race at a level of fitness that is unsafe and not fun.
So, I need to either train harder to ride at the level where the bike handling skills are safer and not sketchy, or hang it up. I'm not going to race at a level of fitness that is unsafe and not fun.
Tuesday, July 07, 2009
"How can YouTube survive?
It's wildly popular - and thought to be losing hundreds of millions of dollars a year. Now questions are being asked about the future of YouTube. Rhodri Marsden investigates a mystery of digital-age 'freeconomics'"
Does it even need 'saving'? CLICK HERE to read the article accompanying this headline.
How can YouTube survive?
It's wildly popular - and thought to be losing hundreds of millions of dollars a year. Now questions are being asked about the future of YouTube. Rhodri Marsden investigates a mystery of digital-age 'freeconomics'
It must surely rank as the most mundane business launch in history. Jawed Karim, one of the founders of YouTube, shuffles timidly in front of a video camera while standing in front of a group of elephants at San Diego zoo, with precious little idea of what he was starting. "The cool thing about these guys," he says, nervously gesturing behind him, "is that they have really long trunks. And that's pretty much all there is to say."
This 19-second video clip, uploaded to the brand-new website later later that day, 23 April 2005, may have been insubstantial, but it certainly wasn't inconsequential. Within 18 months, Karim and his partners Steve Chen and Chad Hurley had sold YouTube to Google for $1.76bn, and in doing so became one of a select band of online entrepreneurs who managed to grab our attention – and keep it.
Innumerable jaded web entrepreneurs will tell you how easy it is to get thousands of people to glance at a site, but how tortuous it is to get people to stick around or even come back again the following day. Not only do you have to fulfil a desire that people didn't even realise that they had, but it has to be done with such style and panache that your service becomes indispensable. While the internet may have dismantled many of the traditional barriers to reaching us, the general public, if your idea is anything less than sensational, we will flatly ignore it.
But YouTube was sensational. Prior to its launch, creating a videoclip for someone else to watch online was an arcane and deeply frustrating procedure of digitisation, encoding and embedding that was way more trouble than it was worth – not least because incompatible technologies meant that many people wouldn't be able to watch it. But from humble beginnings in a room above a pizzeria in San Mateo, California, Hurley, Chen and Karim made the process simple, they made it relatively quick, and above all else, they made it free.
By mid-2006, the site was fizzing with activity as we started using our YouTube channel as a jukebox, a blogging service, a promotional tool for our bands, a home video vault, a repository of famous film and television moments – sometimes with the blessing of the copyright owners, more often without it – and just occasionally, it provided an unexpected route to stardom. YouTube entered the lexicon and became synonymous with online video; the former Secretary of State for Local Government, Hazel Blears, dropped the phrase "YouTube if you want to" into an attack on Gordon Brown's style of Government.
Blears making a feeble joke about YouTube is just one small measure of its phenomenal success. But while its staggering popularity is without question – some 345 million visitors worldwide descend upon the website every month – it is haemorrhaging cash. The question of exactly how unprofitable it is continues to be the source of fierce debate online; back in April, analysts at Credit Suisse estimated that its operating losses for this year would reach $470m, while San Francisco-based IT consultants RampRate were more optimistic, but still put the figure at just over $174m. Google aren't rushing to put an end to speculation over the scale of the debt. One thing is abundantly clear from both studies: Google isn't making money by letting everyone and their aunt share videos with each other for free. And the news last week that founder Steve Chen was leaving YouTube to work on other projects at Google kicked off another flurry of rumours as to its possible fate.
***
Music, television, sport, gaming: the flow of free entertainment to our computer screens seems almost the result of a magical process, and there's been little need for us to consider the costs that might have been incurred by those making it all happen. It's broadly accepted that YouTube will receive around $240m of revenue from advertising this year, but that sum doesn't even cover their general overheads and the cost of acquiring premium video content (such as TV shows) from copyright holders. In addition, there are the huge fixed costs from the supply side – data centres, hardware, software and bandwidth – that have to cope with the 20 hours of video clips that we upload to YouTube every minute of every day. Again, no-one knows the true total of these costs – the Credit Suisse and RampRate reports put it between $83m and $380m this year – but Google's Chief Financial Officer, Patrick Pichette, would only reveal one thing: "We know our cost position, but nobody else does." Or, in other words, we're not telling you.
This typifies the slightly secretive but ultimately sanguine position of Google even as phrases like "financial folly" are bandied about to describe the YouTube business model. With Google's overall profits reaching some $1.42bn for the first quarter of this year alone, the king of online search is certainly a position to support a loss-making venture that also happens to be the third-most-popular website on the internet. (Google, naturally, is the first.) But Keith McMahon, senior analyst for the Telco 2.0 Initiative, a research group that studies business models in the digital economy, believes that YouTube is not the albatross around Google's neck that it's widely imagined to be. He sees the search company as deriving massive indirect benefits from operating YouTube and believes that estimates of its losses obscure the true picture.
"There are many urban myths surrounding the way that companies extract value from the internet," he says. "Google's spin-off benefits from owning YouTube include the accumulation of our data and strengthening of their network design – and the more time people spend watching online video, the more advertisers will pour into marketing on the internet as a whole. There's no doubt that Google can afford YouTube."
McMahon also believes that by keeping quiet about YouTube's hidden benefits and by allowing the misconception of it as a deeply unprofitable business to circulate, things work very nicely in Google's favour when it comes to negotiating with copyright holders in the world of TV, movies and music. Copyright holders can't demand money that isn't there, and it would certainly take no more than a hint of profitability at YouTube for lawyers to descend, threatening court cases and demanding higher royalties. In the new, topsy-turvy world of online economics, it seems astonishing that losses on paper have actually made YouTube a more powerful online force.
But while Google's pockets may be deep enough to operate a phenomenally popular online service at no cost to its users, what about the countless other internet startups whose operations scarcely extend across a dingy office, let alone several continents? With the free model slowly establishing itself, how can businesses sustain their activities? Sadly, the most common answer is: they can't. The traditional way to generate revenue and offset losses has been to sell some form of advertising space on the website. But an increasing number of industry commentators believe that the internet advertising model is broken – and what better proof than YouTube itself, whose advertising revenues don't even cover their overheads, and who might be dead in the water if it wasn't for their multinational sugar daddy?
In a piece this year for the insider's technology blog, TechCrunch, entitled "Why Advertising Is Failing On The Internet", Eric Clemons, Professor of Operations and Information Management at the University of Pennsylvania, argued that the way that we're using the internet has shattered the whole concept of advertising. We need no encouragement to share our opinions online regarding products and services and offer them star ratings; as a result, we're much more likely to look for personal recommendations from other customers than wait for a gaudy advert to beckon us wildly in the direction of a company website or online store. He claims we don't trust online advertising, we don't need online advertising, but above all we don't want online advertising.
There's certainly a huge weight of evidence to support the latter theory; extensions for web browsers that block advertisements from displaying on the screen have proved to be incredibly popular, and we seem increasingly resentful of attempts by companies to compromise our free online experience by pushing marketing messages in our direction. Spotify, the online jukebox launched this year, has won countless plaudits for its innovative, free and legal approach to online music, but you don't need to look far online before finding users who bitterly complain about the brief audio adverts that play every 20 minutes, interrupting the flow of the new Kasabian album. One comment on a story about the possible expansion of YouTube's advertising is typical: "If advertising is made one iota more intrusive, I shall use other video sites instead."
Small wonder that YouTube only dare feature advertising in less than 5 per cent of the videos on the website, along with a few subtle ads in the sidebar of their search results. But while Google continues to finesse its YouTube model, with click-to-buy links and sponsored competitions, it's contended by Professor Clemons that no matter how innovative the advertising industry might become, "commercial messages, pushed through whatever medium, in order to reach a potential customer who is in the middle of doing something else, will fail".
If this is true, it obviously has implications for Google, even though they're sitting very pretty at the moment as the overwhelmingly dominant force in online advertising. But other companies dependent on ad revenue aren't so fortunate. Joost, another ad-funded online video service, announced last week that it would be reinventing itself as a provider of white-label – generic – video for other businesses, and would be cutting jobs in the process.
"In these tough economic times," said its chairman Mike Volpi, "it's been increasingly challenging to operate as an independent, ad-supported online video platform."
But even taking the effects of the recession into account, Keith McMahon is unsurprised. "All those startups have burned through their initial venture capital money, and they've seen that the business model that they were originally planning for – this landgrab for advertising – just isn't there any more." As a leader in The Economist entitled "The end of the free lunch" put it earlier this year, "Reality is asserting itself once more … Silicon Valley seems to be entering another 'nuclear winter'."
***
We are uninterested, verging on contemptuous, of the marketing strategies that were supposed to pay for us to enjoy online services for free. We've become totally unwilling to pay for them directly, either; we simply figure that someone, somehow, will pick up the tab. Rupert Murdoch recently announced plans to "fix" the current newspaper business model by charging for access to News Corporation's newspaper web sites, stating that "the current days of the internet will soon be over", but Chris Anderson, the editor of Wired magazine, spends 288 pages in his new book "Free: The Future Of A Radical Price" explaining why this is ultimately impossible. He contends that information wants to be free, and that there's an unstoppable downward pressure on the price of anything "made of ideas", adding that the most worrying long-term problem for internet businesses is that the Google Generation are now growing up simply assuming that everything digital is free. They've internalised the economics of the free model "in the same way that we internalise Newtonian mechanics when we learn to catch a ball".
In other words, the fact that most people over the age of 30 doubt that online businesses can survive by offering free services is irrelevant, because most people under the age of 30 are demanding them. On messageboards and forums across the internet you can see them calling for record companies, film studios, newspapers and television channels to come up with a solution that will extend their entertainment utopia, and quick; if they don't, well, they'll find a way around it. And while many see this as a selfish, unrealistic attitude, the onus is on businesses to get themselves out of this mess because the digital medium exercises unstoppable power. However much Rupert Murdoch and others may wish to control it, it's Anderson's contention that the beast is way, way too slippery.
Anderson, along with other digital visionaries, tends to display a sunny optimism that new business models will inevitably step into the breach, while leaving speculation about what those models might actually be to others. But while Anderson says it's "head spinning – and exhilarating – to watch an industry reinvent itself in the face of a new medium", those working in the online economy aren't quite so thrilled. The news regarding YouTube's losses have caused such consternation because people simply can't believe that the third-most-popular website on the web is unable to stand alone and turn a profit. And suddenly, the magical web, whose supposed capacity to revolutionise business has attracted and continues to attract waves of ambitious entrepreneurs, may slowly be revealing itself as an arena in which only a few large companies can survive.
This was illustrated by a tale recounted by the publisher of the Dallas Morning News, James Moroney, who recently told the US Congress about Amazon's proposal for licensing his newspaper's content to be read on Amazon's e-reading device, the Kindle: he was informed that 70 per cent of revenue would go to Amazon, with only 30 per cent to the Morning News for providing the content. It seems both unhealthy and deeply disappointing that Amazon, Microsoft, Google and the like are beginning to wield so much power; it's even something over which even Google CEO Eric Schmidt has expressed concern.
But Keith McMahon says that we shouldn't be surprised. "Remember in the 1980s when the home computer boom started? The country was full of young kids coding games and selling them on cassette," he says. "But from that rose a gaming industry that's controlled by a small number of very wealthy organisations. Cottage industries that can't survive on their own will either fail, or get swallowed up."
McMahon's message to online businesses is essentially one that's remained the same ever since humans first started making transactions: business is business. For all the cries of foul by entrepreneurs or copyright holders in the face of "unfair" behaviour by multinational corporations or websites such as The Pirate Bay, if you can't find the money to make your business work, that's the end of your business. Because ultimately, the market can't be fought.
YouTube's lack of profitability other than as part of a colossal global multinational may signal the end of a dream that has somehow managed to extend past the bursting of the dotcom bubble back in 2001, and the options for new online ventures seem to be as follows: either produce something that people are willing to pay for, or come up with an idea for a free service that's so ingenious that a benevolent multinational is willing to take it off your hands. But remember: that trick of making a home video of yourself in front of a few elephants has already been done.
Does it even need 'saving'? CLICK HERE to read the article accompanying this headline.
How can YouTube survive?
It's wildly popular - and thought to be losing hundreds of millions of dollars a year. Now questions are being asked about the future of YouTube. Rhodri Marsden investigates a mystery of digital-age 'freeconomics'
It must surely rank as the most mundane business launch in history. Jawed Karim, one of the founders of YouTube, shuffles timidly in front of a video camera while standing in front of a group of elephants at San Diego zoo, with precious little idea of what he was starting. "The cool thing about these guys," he says, nervously gesturing behind him, "is that they have really long trunks. And that's pretty much all there is to say."
This 19-second video clip, uploaded to the brand-new website later later that day, 23 April 2005, may have been insubstantial, but it certainly wasn't inconsequential. Within 18 months, Karim and his partners Steve Chen and Chad Hurley had sold YouTube to Google for $1.76bn, and in doing so became one of a select band of online entrepreneurs who managed to grab our attention – and keep it.
Innumerable jaded web entrepreneurs will tell you how easy it is to get thousands of people to glance at a site, but how tortuous it is to get people to stick around or even come back again the following day. Not only do you have to fulfil a desire that people didn't even realise that they had, but it has to be done with such style and panache that your service becomes indispensable. While the internet may have dismantled many of the traditional barriers to reaching us, the general public, if your idea is anything less than sensational, we will flatly ignore it.
But YouTube was sensational. Prior to its launch, creating a videoclip for someone else to watch online was an arcane and deeply frustrating procedure of digitisation, encoding and embedding that was way more trouble than it was worth – not least because incompatible technologies meant that many people wouldn't be able to watch it. But from humble beginnings in a room above a pizzeria in San Mateo, California, Hurley, Chen and Karim made the process simple, they made it relatively quick, and above all else, they made it free.
By mid-2006, the site was fizzing with activity as we started using our YouTube channel as a jukebox, a blogging service, a promotional tool for our bands, a home video vault, a repository of famous film and television moments – sometimes with the blessing of the copyright owners, more often without it – and just occasionally, it provided an unexpected route to stardom. YouTube entered the lexicon and became synonymous with online video; the former Secretary of State for Local Government, Hazel Blears, dropped the phrase "YouTube if you want to" into an attack on Gordon Brown's style of Government.
Blears making a feeble joke about YouTube is just one small measure of its phenomenal success. But while its staggering popularity is without question – some 345 million visitors worldwide descend upon the website every month – it is haemorrhaging cash. The question of exactly how unprofitable it is continues to be the source of fierce debate online; back in April, analysts at Credit Suisse estimated that its operating losses for this year would reach $470m, while San Francisco-based IT consultants RampRate were more optimistic, but still put the figure at just over $174m. Google aren't rushing to put an end to speculation over the scale of the debt. One thing is abundantly clear from both studies: Google isn't making money by letting everyone and their aunt share videos with each other for free. And the news last week that founder Steve Chen was leaving YouTube to work on other projects at Google kicked off another flurry of rumours as to its possible fate.
***
Music, television, sport, gaming: the flow of free entertainment to our computer screens seems almost the result of a magical process, and there's been little need for us to consider the costs that might have been incurred by those making it all happen. It's broadly accepted that YouTube will receive around $240m of revenue from advertising this year, but that sum doesn't even cover their general overheads and the cost of acquiring premium video content (such as TV shows) from copyright holders. In addition, there are the huge fixed costs from the supply side – data centres, hardware, software and bandwidth – that have to cope with the 20 hours of video clips that we upload to YouTube every minute of every day. Again, no-one knows the true total of these costs – the Credit Suisse and RampRate reports put it between $83m and $380m this year – but Google's Chief Financial Officer, Patrick Pichette, would only reveal one thing: "We know our cost position, but nobody else does." Or, in other words, we're not telling you.
This typifies the slightly secretive but ultimately sanguine position of Google even as phrases like "financial folly" are bandied about to describe the YouTube business model. With Google's overall profits reaching some $1.42bn for the first quarter of this year alone, the king of online search is certainly a position to support a loss-making venture that also happens to be the third-most-popular website on the internet. (Google, naturally, is the first.) But Keith McMahon, senior analyst for the Telco 2.0 Initiative, a research group that studies business models in the digital economy, believes that YouTube is not the albatross around Google's neck that it's widely imagined to be. He sees the search company as deriving massive indirect benefits from operating YouTube and believes that estimates of its losses obscure the true picture.
"There are many urban myths surrounding the way that companies extract value from the internet," he says. "Google's spin-off benefits from owning YouTube include the accumulation of our data and strengthening of their network design – and the more time people spend watching online video, the more advertisers will pour into marketing on the internet as a whole. There's no doubt that Google can afford YouTube."
McMahon also believes that by keeping quiet about YouTube's hidden benefits and by allowing the misconception of it as a deeply unprofitable business to circulate, things work very nicely in Google's favour when it comes to negotiating with copyright holders in the world of TV, movies and music. Copyright holders can't demand money that isn't there, and it would certainly take no more than a hint of profitability at YouTube for lawyers to descend, threatening court cases and demanding higher royalties. In the new, topsy-turvy world of online economics, it seems astonishing that losses on paper have actually made YouTube a more powerful online force.
But while Google's pockets may be deep enough to operate a phenomenally popular online service at no cost to its users, what about the countless other internet startups whose operations scarcely extend across a dingy office, let alone several continents? With the free model slowly establishing itself, how can businesses sustain their activities? Sadly, the most common answer is: they can't. The traditional way to generate revenue and offset losses has been to sell some form of advertising space on the website. But an increasing number of industry commentators believe that the internet advertising model is broken – and what better proof than YouTube itself, whose advertising revenues don't even cover their overheads, and who might be dead in the water if it wasn't for their multinational sugar daddy?
In a piece this year for the insider's technology blog, TechCrunch, entitled "Why Advertising Is Failing On The Internet", Eric Clemons, Professor of Operations and Information Management at the University of Pennsylvania, argued that the way that we're using the internet has shattered the whole concept of advertising. We need no encouragement to share our opinions online regarding products and services and offer them star ratings; as a result, we're much more likely to look for personal recommendations from other customers than wait for a gaudy advert to beckon us wildly in the direction of a company website or online store. He claims we don't trust online advertising, we don't need online advertising, but above all we don't want online advertising.
There's certainly a huge weight of evidence to support the latter theory; extensions for web browsers that block advertisements from displaying on the screen have proved to be incredibly popular, and we seem increasingly resentful of attempts by companies to compromise our free online experience by pushing marketing messages in our direction. Spotify, the online jukebox launched this year, has won countless plaudits for its innovative, free and legal approach to online music, but you don't need to look far online before finding users who bitterly complain about the brief audio adverts that play every 20 minutes, interrupting the flow of the new Kasabian album. One comment on a story about the possible expansion of YouTube's advertising is typical: "If advertising is made one iota more intrusive, I shall use other video sites instead."
Small wonder that YouTube only dare feature advertising in less than 5 per cent of the videos on the website, along with a few subtle ads in the sidebar of their search results. But while Google continues to finesse its YouTube model, with click-to-buy links and sponsored competitions, it's contended by Professor Clemons that no matter how innovative the advertising industry might become, "commercial messages, pushed through whatever medium, in order to reach a potential customer who is in the middle of doing something else, will fail".
If this is true, it obviously has implications for Google, even though they're sitting very pretty at the moment as the overwhelmingly dominant force in online advertising. But other companies dependent on ad revenue aren't so fortunate. Joost, another ad-funded online video service, announced last week that it would be reinventing itself as a provider of white-label – generic – video for other businesses, and would be cutting jobs in the process.
"In these tough economic times," said its chairman Mike Volpi, "it's been increasingly challenging to operate as an independent, ad-supported online video platform."
But even taking the effects of the recession into account, Keith McMahon is unsurprised. "All those startups have burned through their initial venture capital money, and they've seen that the business model that they were originally planning for – this landgrab for advertising – just isn't there any more." As a leader in The Economist entitled "The end of the free lunch" put it earlier this year, "Reality is asserting itself once more … Silicon Valley seems to be entering another 'nuclear winter'."
***
We are uninterested, verging on contemptuous, of the marketing strategies that were supposed to pay for us to enjoy online services for free. We've become totally unwilling to pay for them directly, either; we simply figure that someone, somehow, will pick up the tab. Rupert Murdoch recently announced plans to "fix" the current newspaper business model by charging for access to News Corporation's newspaper web sites, stating that "the current days of the internet will soon be over", but Chris Anderson, the editor of Wired magazine, spends 288 pages in his new book "Free: The Future Of A Radical Price" explaining why this is ultimately impossible. He contends that information wants to be free, and that there's an unstoppable downward pressure on the price of anything "made of ideas", adding that the most worrying long-term problem for internet businesses is that the Google Generation are now growing up simply assuming that everything digital is free. They've internalised the economics of the free model "in the same way that we internalise Newtonian mechanics when we learn to catch a ball".
In other words, the fact that most people over the age of 30 doubt that online businesses can survive by offering free services is irrelevant, because most people under the age of 30 are demanding them. On messageboards and forums across the internet you can see them calling for record companies, film studios, newspapers and television channels to come up with a solution that will extend their entertainment utopia, and quick; if they don't, well, they'll find a way around it. And while many see this as a selfish, unrealistic attitude, the onus is on businesses to get themselves out of this mess because the digital medium exercises unstoppable power. However much Rupert Murdoch and others may wish to control it, it's Anderson's contention that the beast is way, way too slippery.
Anderson, along with other digital visionaries, tends to display a sunny optimism that new business models will inevitably step into the breach, while leaving speculation about what those models might actually be to others. But while Anderson says it's "head spinning – and exhilarating – to watch an industry reinvent itself in the face of a new medium", those working in the online economy aren't quite so thrilled. The news regarding YouTube's losses have caused such consternation because people simply can't believe that the third-most-popular website on the web is unable to stand alone and turn a profit. And suddenly, the magical web, whose supposed capacity to revolutionise business has attracted and continues to attract waves of ambitious entrepreneurs, may slowly be revealing itself as an arena in which only a few large companies can survive.
This was illustrated by a tale recounted by the publisher of the Dallas Morning News, James Moroney, who recently told the US Congress about Amazon's proposal for licensing his newspaper's content to be read on Amazon's e-reading device, the Kindle: he was informed that 70 per cent of revenue would go to Amazon, with only 30 per cent to the Morning News for providing the content. It seems both unhealthy and deeply disappointing that Amazon, Microsoft, Google and the like are beginning to wield so much power; it's even something over which even Google CEO Eric Schmidt has expressed concern.
But Keith McMahon says that we shouldn't be surprised. "Remember in the 1980s when the home computer boom started? The country was full of young kids coding games and selling them on cassette," he says. "But from that rose a gaming industry that's controlled by a small number of very wealthy organisations. Cottage industries that can't survive on their own will either fail, or get swallowed up."
McMahon's message to online businesses is essentially one that's remained the same ever since humans first started making transactions: business is business. For all the cries of foul by entrepreneurs or copyright holders in the face of "unfair" behaviour by multinational corporations or websites such as The Pirate Bay, if you can't find the money to make your business work, that's the end of your business. Because ultimately, the market can't be fought.
YouTube's lack of profitability other than as part of a colossal global multinational may signal the end of a dream that has somehow managed to extend past the bursting of the dotcom bubble back in 2001, and the options for new online ventures seem to be as follows: either produce something that people are willing to pay for, or come up with an idea for a free service that's so ingenious that a benevolent multinational is willing to take it off your hands. But remember: that trick of making a home video of yourself in front of a few elephants has already been done.
4th of July Rodeo 1/2 time show on Park Rapids
Monday, July 06, 2009
25 stitches
On your left
Do you know what this means?
Peggy was riding the bike path today and yelled "on your left" to a family riding 4 abreast on the bike path. As she was attempting to pass on the left she politely said it again, the father immediately swerved left and took crashed into her, causing her to crash to the ground and him on top of her. She got a huge gash in her knee and scrape on her thigh. She called me in a panic and I said I'll be right there. The by-standers called an ambulance and they took her to the ER before I could get there. She went to the ER and got 25 stitches.
I didn't let her in on a secret that some of us cyclists know - don't ever say "on your left"..just sneak by and don't say anything. Yes, the polite thing to do is say "on your left", but 9 out of 10 times the person won't know what you mean and will swerve to the left. I quit saying it years ago from too many near misses. Yes, I scare people and get yelled at occasionally, but I don't get crashed into.
Peggy was riding the bike path today and yelled "on your left" to a family riding 4 abreast on the bike path. As she was attempting to pass on the left she politely said it again, the father immediately swerved left and took crashed into her, causing her to crash to the ground and him on top of her. She got a huge gash in her knee and scrape on her thigh. She called me in a panic and I said I'll be right there. The by-standers called an ambulance and they took her to the ER before I could get there. She went to the ER and got 25 stitches.
I didn't let her in on a secret that some of us cyclists know - don't ever say "on your left"..just sneak by and don't say anything. Yes, the polite thing to do is say "on your left", but 9 out of 10 times the person won't know what you mean and will swerve to the left. I quit saying it years ago from too many near misses. Yes, I scare people and get yelled at occasionally, but I don't get crashed into.
Happy 4th of July
We had a great weekend up at Mantrap. We took the VW Camper Van up there so my dad could help me dial it in for the upcoming road trip. So, I learned a lot more hanging with my dad and brother while working on the van. This is what we accomplished, all of which would have cost me $thousands of dollars, but only a couple $hundred in parts because we did it all ourselves:
- full tune-up kit (oil change, fuel and air filter, new spark plugs and wires, distributor rotar and cap)
- auxiliary battery kit, so I can run the interior lights, radio, and an inverter through the cig lighter, when the van is not running and save the starting battery
- got the propane on the fridge working
- filled up the water tank
- fixed the reverse lights and tail lights
- fixed the loose cig lighter
- I'm probably missing some other things..
Thanks guys
- full tune-up kit (oil change, fuel and air filter, new spark plugs and wires, distributor rotar and cap)
- auxiliary battery kit, so I can run the interior lights, radio, and an inverter through the cig lighter, when the van is not running and save the starting battery
- got the propane on the fridge working
- filled up the water tank
- fixed the reverse lights and tail lights
- fixed the loose cig lighter
- I'm probably missing some other things..
Thanks guys









































