All Things Digital

I just got to Park City, Utah, for my annual visit (well, this will be my third year here) to the famous film festival that takes place in this lovely mountain resort.

While I like a good movie as much as the next person, I am no film aficionado, nor do I have a screenplay stuffed in a drawer, nor do I hope someday to direct. I do like celebrity sightings, of course.

I am here because the Sundance Film Festival has understood early and often that technology is becoming increasingly important to the future of the film industry.

Because of that, they’ve been expanding additional offerings in the digital arena with panels throughout the festival.

The panel I will moderate is a great one about online video, called “Webolution!–Hollywood Adapts to the Web.” It will take place tomorrow at 12:30 p.m. at the New Frontier on Main here.

Here’s the description:

“The writing is on the wall–the industry must adapt to new media or face extinction. Today’s studios and independents are finally embracing the challenge of porting content and revenue to new distribution strategies. Join Hollywood power brokers and new media superstars to discuss their strategies for the Web.”

The panelists include Ted Sarandos (Netflix), Dmitry Shapiro (founder and CEO of Veoh.com), Dan Glickman (MPAA), Jason Kilar (CEO of Hulu.com), Mike Volpi (CEO of Joost.com), Erik Flanagan (EVP Digital Media MTV Networks/Comedy Central/South Park Studios) and tech strategy adviser Phil Lelyveld.

Videos, of course, to come, along with visits with various tech players here, who are increasing in number annually. And, maybe, a Hollywood celeb or two.

So when, if ever, will there be a truly bona fide Internet hit?

And please, pretty please, it just can’t be “lonelygirl15″ (pictured below) and some clever music videos.

The lack of lasting and profitable professional content online is once again in sharp relief with the writers’ strike now taking place in Hollywood.

In a Wall Street Journal piece yesterday on the struggle between the Writers Guild of America and entertainment studios, Ken Hertz, a Los Angeles lawyer who has worked on digital music issues, made an interesting observation:

If anything, the strike could create an opportunity for the online world to step up and prove its value to the guild. A strike could in a strange way damage the studios by creating online competitors who come forward to offer the union writers a new model that no one would have otherwise had the time or effort to conceive of.”

If only.

Because, while the main point of contention between the two sides is how to split future revenues from digital distribution, I am not sure exactly when it will become more than the middling revenue (and not much income) online content generates today, which is more like splitting up a tip jar at Starbucks than raking in big bags of dough from some Hollywood blockbuster.

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Here’s some more video from the halls of Web 2.0 Summit, which is taking place this week in San Francisco.

Look to John Paczkowski of Digital Daily for liveblogging from the conference yesterday, which included appearances by Microsoft’s Steve Ballmer and eBay’s Meg Whitman.

Today is the final day, with digital bigshots onstage like: AT&T’s Randall Stephenson, Mike Volpi of Joost and Uber-VC John Doerr.

Of course, most of the action–as always–takes place in the halls of the Palace Hotel, where the schmoozing never stops. We hung out for a bit yesterday and asked everyone their thoughts on the latest hot trend and ridiculous hype. Incredibly, the answer to both was Facebook!

Here’s a video of the scene from Day 2:

Joost, the online video service, is finally out of beta–kind of–with the release of its 1.0 software to anyone who cares to download it and a redesign of both its Web page and search on the service.

The broadband peer-to-peer Internet service, which is trying to popularize a television experience on the Web by providing professionally produced content–complete with network television shows–will remain in beta, although you no longer have to be invited to join.

Presumably, kazillions will now sign up. Or not!

Those who were invited and already using it now get a better interface and a way to find shows that seems more intuitive (the old carousel approach was plainly confusing, so let’s just forget it ever happened).

It will also open its API for third-party apps–in other words, widgetmania continues unabated!

We are no Walt Mossberg, but found the pre-beta version a bit buggy and often annoying, so this is an improvement. Now, bring us more programming we like (and, um, not more of investor CBS’s gross-me-out “CSI”)!

Joost, founded by the founders of the Skype online phone service, is backed by some big players–such as Sequoia Capital and Index Ventures–to the tune of $45 million in funding.

And it also nabbed a popular Silicon Valley player, Mike Volpi, as its CEO.

Here’s a video interview with Volpi, in two parts (Part 1 and Part 2), which I did on a recent trip to Los Angeles, where he was visiting in the vain hope that Hollywood types might suddenly realize the kids love this crazy Internet thing.

Also included is a video I made at Joost’s party in Burbank in June for those same ungrateful entertainment folks.

I like Mike. Volpi, that is, Joost’s new CEO.

Pictured here, the 40-year-old longtime tech exec is a nice choice to run the moderately hyped online video television site.

But I will admit it–I have not been gung-ho on the prospect of Joost–which I have called a potentially “messy control freak of a service.”

I was teasing, of course, but do have doubts about the company–founded by the well-known geek duo Janus Friis and Niklas Zennström–as being too closed and destination oriented, as well as playing in a very crowded field.

In addition, Joost needs massive amounts of cooperation from the very restrictive mandarins of Hollywood. And we all know the amount of leadership they have brought as all content has gone digital–some sum much less than zero.

By the way, Friis and Zennström are the pair who disrupted the phone industry with Skype and also created the controversial peer-to-peer file-sharing service Kazaa, used by many to illegally download–yes–copyrighted entertainment content.

But now in the age of fear and loathing in Hollywood for Google-owned YouTube comes Joost, which aims to deliver a TV experience on the Web with high-quality professional content by using a special player you download. It is free, supported by advertising.

To do this, Joost nabbed $45 million in funding in May from Silicon Valley’s famed Sequoia Capital (backers of Yahoo, YouTube and Google, among others) and early Skype funder Index Ventures, as well as CBS, Viacom and the wealthy Hong Kong investor Li Ka-shing.

It has struck deals to offer content, using a peer-to-peer technology distribution system, from CBS, as well as Turner and Warner Bros. and Sony. It has also picked up a slate of big-time advertisers like Coca-Cola. Also, unlike television, it also gives users a bunch of interactive options like instant messaging while viewing and news feeds.

So far, Hollywood likes Joost because, hmm, it’s not copyright-defying YouTube.

But the start-up is not alone. For example, NBC Universal and News Corp. will soon launch a new Web video service called Hulu, in a reported $100 million effort. Also, there’s Veoh, backed by former Hollywood bigwigs Michael Eisner and, recently, Tom Freston.

(At least Joost has this going for it–not such a dopey name as those two! In fact, I like the name a lot.)

And it seems as if a new video site pops up constantly, as every traditional content provider tries to figure out a strategy, even as less cooperative techies like YouTube and Apple’s iTunes grow ever more popular.

So what better place to interview Volpi, a longtime Cisco exec (who was considered the heir apparent to CEO and Chairman John Chambers), than on the trendy Asia de Cuba patio at the Mondrian Hotel on Sunset Strip.

While Volpi has the tech cred, he is also pretty smooth for Silicon Valley, possessing a bit of Hollywood style and looking hipper than your average nerd (it’s obviously due to his Italian-born roots).

Well-liked and respected in the tech industry, the mechanical engineering grad from Stanford was raised in Japan, where his journalist mother covered a wide range of issues.

Yesterday in Los Angeles to make the rounds at the studios, trying to explain what Joost will do for them, Volpi talked with me about everything from Joost’s prospects to widgetmania to how you create great online content.

He also insulted me, calling me hyped (that’s the digital pot calling the Web kettle black!).

Here’s the first video with the second posted here:

Please see this disclosure related to me and Google.

Here’s part 2 of my interview with Joost’s Mike Volpi.

See the first post and video about the online television video service here.

Also below, check out a video (and post here) I did earlier this summer from a party Joost hosted for Hollywood content creators at the Academy of Television Arts & Sciences’ Leonard H. Goldenson Theatre.

Please see this disclosure related to me and Google.

I will be traveling south to Los Angeles Sunday afternoon to do a few days reporting there.

That will include visits to the offices of JibJab, Userplane, Disney’s Internet Group, as well as some catching up with newly minted investor Ross Levinsohn and Joost CEO Mike Volpi.

We’ll be headed that way again a week later to go to Rafat Ali’s “iPhone & Beyond” one-day conference, and to see the new studios of TMZ, the execs at Move.com, Veoh and perhaps visit MySpace, Yahoo in Santa Monica, Helio and also meet the new head of Hulu.

Also on the agenda, DEMOfall and a lunch with blogger Paul Kedrosky in San Diego.

As you can see, a wide range of companies and people, which is why if you’re going to be a tech reporter going forward, you must school yourself quickly on what is happening in the digital arena in Southern California.

I have an even longer list of people and companies I want to meet there, so I expect to get there more often over the next year, rather than just sticking to the 101/280 corridor here in Northern California.

In fact, I have been wading deeply especially into the entertainment industry for a long time now, because the intersection of that industry and tech is one of the more important stories going forward. It’s a canard that Silicon Valley and Hollywood are at odds. While they will be fighting, of course, their fates are now inextricably combined and even aligned.

Case in point: A post I did this past week on the appalling instance of an ingenue singer being “discovered” on YouTube, when it turns out she was being secretly groomed by Hollywood Records to seem like an amateur phenom.

An amazing story, which is all about how marketing, entertainment, content and distribution of information are shifting quickly and with great chaos.

So, I will just say, as Randy Newman sings below (a video someone ripped onto YouTube, of course), I love L.A. Considering the stakes, it would be foolish not to.

Summer is officially over, kids, so back to school (including my own son Louie–pictured below as a sword-fighting Mexican wrestler and astronaut–who starts kindergarten this morning!).

And no more Burning Man, either (we completely ignored the annual techie Valhalla in this blog, because it evoked a very dusty and peyote feeling that we just have never felt the need to learn about close up and personal)!

In other words, time to get serious about the business at hand!

Namely, cranking the volume up to 11 on our ongoing efforts to figure out a few choice things about several different Internet companies.

Much as the television networks tout their crappy fall slate, here’s my September lineup:

1. Yahoo–natch! Could we possibly give up on this ongoing dramedy, when we are almost at the midway point of CEO and co-founder Jerry Yang’s 100-day Vision Quest to turn around the troubled Web icon? I think not! Like that new let’s-just-dispense-with-subtlety series on ABC called “Dirty Sexy Money,” it has everything: Money! Power! Sex! (Ok, not so much sex.) But: Money! Power! Search!

Tomorrow is officially Day 50 for Yang, and we’re going to spend the week asking smart people what they’d do to fix Yahoo.

Also, of course, we have requested interviews with everyone from Hilary Schneider to Sue Decker to Yang, and, curiously, the phone is not ringing with calls.

Nonetheless, we will not rest in our efforts to bring Yahoo to you–Garlinghouse! Ismail! Horowitz! Fake! Bhat! Boerries! Those not-Lloyd guys down in Santa Monica!

2. Facebook. Facebook. Facebook. Also Mark Zuckerberg, unavoidable, of course. And those other guys there, whose names escape you because only Zuckerberg says cheese for the magazine covers. Will they IPO or will they sell or will they stand pat? Kind of like “Deal or No Deal,” but without the suspense.

They will. One of those choices. Or not.

3. Hey, what about MySpace? Aren’t they No. 1? By far? I am itching to try to figure out what’s going on down there in Beverly Hills, what with all the attention and momentum Facebook seems to have of late.

So how is MySpace really faring? And what are its prospects for growth? What are its weaknesses (the chatter in the Valley, the Silicon one, is increasing technology challenges as it grows ever larger)? Is owner Rupert Murdoch angling to unload it? Or perhaps double-down with a play for Facebook, too? (I know, stupid, as it’s too costly now even for the master dealmaker.)

Television comparison: The return of “Grey’s Anatomy”–has it jumped the shark with that left-at-the-altar trick? Much in the same way, with its concerts and new offerings, can the hits keep on coming from MySpace?

4. AOL reminds me a little bit of “Desperate Housewives”–I stopped watching long ago, but I still really hope Felicity Huffman is doing OK (not so much Teri Hatcher).

I guess it was the two books I wrote on the online pioneer that hooked me, but I am truly interested in seeing what will happen to the service as it continues to stumble on.

Will CEO Randy Falco’s online entertainment plans work? (No, but they should!) Will AOL’s ad business take off? (No, but it should!). Will its cool side companies like Truveo and Userplane get the attention they deserve? (No, but they should, too!) Will it ever be spun off from the suffocating arms of its parent Time Warner? (You know the answer by now!)

5. Google. Microsoft. It’s going to be like a war between the 2007 one (Michelle Ryan) and the 1997 “Bionic Woman” (Lindsay Wagner). We don’t need to elaborate further, except to say pull up a chair and enjoy the show, as some cyborgs are going to really be kicking some you-know-what. And it’s going to be pretty!

6. Let’s not leave out the oldies like eBay, Amazon (Jeff, don’t think I have forgotten you!) and IAC, as well as newcomers like Joost, Hulu and the plethora of other interesting new companies now on the scene (with more to come).

With topics like copyright, privacy, innovation, growth and the continued Hollywood-Silicon Valley tussling, it’ll be a great time, as usual, to be watching the digital arena.

And even NBC Universal and Apple’s fighting over price, which now means I will not get to watch “Heroes” on my iPhone, will not deter me.

Although I beg and plead with the thickheaded pair: Save the cheerleader! Save the world! Save my $1.99 an episode!

BoomTown has left our sojourn in Ireland with Walt Mossberg in our ongoing quest to create EuroD and has arrived in London.

For some reason, though, we have still not gotten our invite to Buckingham Palace to discuss the wireless access and show off the iPhone to the royals.

Nonetheless, we press ahead and will be out and about through Monday to see a little of what’s cooking in the digital space here.

London and all of England are quite the users of online technologies–for example, London itself just became the top geographic network on Facebook, with 810,000 sign-ups.

While here, I will be meeting with Reuters head Tom Glocer; Yahoo’s new Europe honcho, Toby Coppel; the people behind the Bebo social network (the service is very popular in the United Kingdom); Index Ventures’ Danny Rimer; and a few cool start-ups. A planned meeting with the Joost folks got canceled sadly, but somehow I will recover.

Look for my tech travel posts and videos in the days ahead and, until then, try to identify this quote and from where from a famous Englishman, and which seems particularly apt for the entrepreneurs of tech:

“Our doubts are traitors, and make us lose the good we oft might win, by fearing to attempt.”

I first ran into Sequoia Capital venture capitalist Roelof Botha in the green room of our recent D5 conference, where he was there to see the demo being done by Jason Calacanis for Mahalo, a “human-powered” search service that Botha had recently invested in.

Though I jokingly congratulated Calacanis on the investment from a “toddler VC,” because of the 33-year-old Botha’s freshly-scrubbed and youthful looks, I’d be pretty pleased if my two sons–2 and 5 years old–could be involved in a multibillion deal after only a few years on the job.

“You have to put yourself in a position to be lucky,” said the South African-born Botha over lunch at the Sundeck on Sand Hill Road in Silicon Valley recently.

Here’s a video I did of my visit with Botha, where I both incorrectly note the address of Sequoia and willfully refuse any effort at pronouncing his name with any grace:

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So yesterday in a very short post, I said the $1 billion valuation that NBC Universal and News Corp. were reportedly putting on its online video joint venture was, shall we say, premature.

Here’s why: No users, no track record and no revelations about what it is actually going to look like. Also no firm launch date either, it now seems.

And did I mention no name?

Well, at least as of yesterday, the No-no-no-no-no company had a new CEO–former Amazon executive Jason Kilar (right).

The 36-year-old left the online retailer last year, after almost a decade at the Seattle-based company. While there, he had a lot of different jobs, including heading up Amazon’s foray into the video and DVD businesses. Before Amazon, he worked for a short time at Walt Disney.

He’ll need all the digital and Hollywood mojo he has to get this project flying, I suspect, given that it is an attempt to get two traditional media companies–neither of which is exactly a shrinking violet–to cooperate to try to catch up in the race to distribute video on the Web.

While No-Name is often called a YouTube-killer (and good luck with that, given that the powerhouse MySpace can hardly keep up), that’s not really its aim nor should it be.

The company is probably more like Joost, except without the closed-system approach that effort is using, to find the best ways to put their professional television and film content across the Internet. As I understand it, there will be no new original or user-generated content at first.

As one smart online exec with knowledge of the venture told me, it is much more about compiling a distribution network rather than creating a destination site, which is a good idea, because there are very few of those that succeed.

Since few big Hollywood companies want to rely on YouTube and its owner Google to get their fare out there and reap the ad dollars hoped, it is imperative that they find as many ways as possible to make their content available digitally.

According to News Corp.’s COO Peter Chernin and NBCU CEO Jeff Zucker, the project has 30 employees in new offices in Santa Monica, Calif., and a dozen charter advertisers.

Some possibly worrisome news: It might or might not launch in September, as some had suggested.

“We’ll launch when we’re prepared to launch with a world-class product,” said Chernin on a conference call yesterday.

At least, he didn’t say no.

Please see this disclosure related to me and YouTube (which is owned by Google).

Joost threw a party in North Hollywood (which is really closer to Burbank than Hollywood) Tuesday at the Academy of Television Arts & Sciences’s Leonard H. Goldenson Theatre for a small throng of Hollywood folks, most of whom looked to be about 21 years old collectively.

(You can just imagine a big Hollywood muckety-muck telling his lowly recent college grad of an assistant to go to the party, because “we gotta be up on this digital stuff you young people like.”)

It was an interesting party for me for a lot of reasons, some of which had nothing to do with Joost, but mostly because it represents yet another foray into Hollywood for the Internet Story, The Sequel. (Also see the video after the jump.)

In the last go-round, there were all sorts of empty alliances struck between techies and the entertainment industry that went precisely nowhere–or as they say here, into perpetual turnaround.

But with broadband penetration improving significantly and the explosion of video on the Web, the best example being the spectacular growth of YouTube, a new dance has begun.

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I’m headed down to Los Angeles tomorrow for a few days on a reporting trip–I know, freakish, a blogging reporter or a reporting blogger–to see folks at Fox Digital, Move.com and others, as well as go to a big Hollywood-style bash for online video site Joost tomorrow night.

There will be coverage of all that here, of course. And, it’s a good thing, as I like going south of Silicon Valley, because it is almost impossible to write about the digital sector now without having much more than a passing knowledge of the entertainment industry.

The sector has been undergoing wrenching changes for a while now, but it is only going to get worse–or better, depending on your perspective–for the industry as it moves forward. So many of the most exciting recent start-ups, such as Joost, are aimed directly at the heart of what Hollywood has been doing for so long now–distributing great content to consumers.

For a long time, the entertainment industry has been terrified of this. I will never forget when the first Internet bubble burst in about 2001, when a major Hollywood executive and I were having lunch and he said to me: “I am so glad that is over.” By that, he meant the Napsterization of content and all the Web activity that had so hurt the music industry as it was.

That was, of course, way before YouTube was a gleam in the eyes of Chad Hurley and Steve Chen and well before broadband penetration had finally gotten to a point where things could get interesting. Now Hollywood knows it is no longer a black-and-white fight, but mostly shades of gray.

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It will be nice to see Danny Rimer back in Silicon Valley this week.

Now London-based, the former SV investment bank analyst and venture capitalist is here for a lunch hosted today by Index Ventures, the juice behind Joost and also a previous little start-up you might recall called Skype.

“From Index Ventures perspective, the world is much smaller and flatter now,” said the invite to the event, which will feature the entire technology investment team of the venture firm, which operates out of both London, Jersey and Geneva.

“Five years ago,” the invite continued, “it felt Herculean to have a small, globally focused business and, today, it is commonplace.”

That, in fact, is the one thing that has struck the 36-year-old Rimer as the difference from when he left California in 2002. He worked here first at Hambrecht & Quist covering then-nascent Web companies (and where I first met him) and then as a fledgling VC at the short-lived Barksdale Group, whose fortunes were buffeted by the first dot-com bust.

“If anything has changed, it is that the Web is really now completely a global phenomenon, which is hard to sometimes see while you are in the middle of Silicon Valley,” said Rimer. “I think I have the best job taking the Silicon Valley model and applying it in totally underpenetrated geographies.”

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To: Mike Volpi, spanking new Joost CEO

From: Kara Swisher, seen-it-all-before journalist

Re: Five quick questions for you on taking the new job at the trendy and well-funded online video service

1. Is it just me or does Joost feel like a service only a Hollywood executive could love, with its big-ticket content and stricter programming than the Web is used to, as I kind of implied here?

2. You’re a tech guy, so can you fix the glitchiness and regular instances of crashing in the beta before it gets out there? Maybe that’s OK for shaggier services like Skype and Kazaa, also founded by Joost’s founders, Janus Friis and Niklas Zennström, but watching premium video requires a more reliable service.

3. You bought a lot of companies at Cisco (really, 70?) as its mergers-and-acquisitions guy, so what’s your strategy for handling all your partners now (like Time Warner, Viacom and CBS) and those who are sure to come? Because it feels to me that it might be like wrangling cats.

4. I like you a lot already for saying to the New York Times in this article that “traditional television as we know it is gradually going to go away.” Um, when exactly (and I am sure your investor CBS liked that comment a lot)?

5. OK, so you’re not YouTube with all its messy user-generated content, and you’re not a television network with all its control-freak mannerisms, but I am hoping that does not mean you are a messy control freak of a service. OK, that’s a statement and not a question–so, let me rephrase: Are you a messy control freak of a service?

Just asking.