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Exclusive: Microsoft's MSN Is in Early Talks With MySpace About Music Tie-Up

Kara Swisher — Tue, 27 Oct 2009 10:34:47 +0000

Microsoft’s MSN is in preliminary talks with MySpace about using the social networking site’s music service, MySpace Music, to help power music offerings on the giant portal.

While sources at both companies cautioned that the talks are still early, Microsoft (MSFT)–which has its own music site that it programs with original and partnered content–execs are interested in goosing it.

That’s because MSN Music consistently ranks substantially lower than other big online music properties in terms of traffic, while MySpace Music is always near the top.

Sources said Microsoft execs don’t think they can do as good a job as MySpace is doing and don’t see the point in striking needed but complex deals with music labels, which the News Corp. (NWS) property already has.

In an April report by comScore (SCOR), for example, MySpace Music was No. 2, just behind AOL Music, with 27.4 million unique monthly visitors. MSN Music was No. 6 with just 7.4 million.

Nonetheless, music is an area MSN cannot lag so badly in, given that entertainment is one of the key categories it is focusing on as it preps for a major renovation of the portal.

As BoomTown wrote in mid-July about a wide variety of changes coming to MSN:

MSN, Microsoft’s online portal, is also preparing a major redo of what U.S. and, possibly, international consumers will see, as it doubles down on five key content verticals, while cutting back on others.

In a new focus that will start to be apparent in the next month, MSN will heavily add to its News, Sports, Finance, Lifestyle and Entertainment offerings, weaving more data from [its search service] Bing into the mix.

“It’s a decision to make it so MSN does less better,” said one source close to the situation. “So there will be a focus of attention on a smaller number of categories in which we can be either #1 or #2 in, rather than #4 or #5.”

It is not clear exactly what the financial terms would be in any tie-up between MSN and MySpace, which could include licensing of content and other services related to music.

But such a deal is not unusual–MSN’s sports site is powered by Fox Sports, which is another News Corp. property.

And such a partnership would also key into concepts that MySpace CEO Owen Van Natta outlined in a recent interview onstage at the Web 2.0 conference.

Key among them was boosting music and entertainment overall and making them the prime focus in the site’s efforts at reinvigorating itself, as well as expanding distribution of MySpace.

In fact, MySpace recently bought social music service iLike to expand its distribution all over the Web, for example–including on Facebook, the longtime social networking rival from which MySpace is now trying mightily to differentiate itself.

In his appearance, Van Natta also unveiled a music video hub, the ability by users to buy music using Apple (AAPL) iTunes, and a set of better analytical tools–called MySpace Music Artist Dashboard–to help artists figure out how to best work with fans.

But MySpace needs more than these, and a link with Microsoft would provide it with a traffic gusher, since MSN’s main page remains one of the most trafficked sites on the Web.

If such a distribution partnership were struck, it would also raise the question of what will happen regarding MySpace’s negotiations with Google (GOOG) over renewal of their search deal, which expires next summer.

Dissatisfaction over the pricey three-year deal has been expressed by both sides; their mutual grumbling is one of the biggest open secrets in Silicon Valley.

Doing a search deal with Bing is the obvious and only alternative, although few expect any agreement to be as rich as the one MySpace did with Google in 2006 for $900 million.

Interestingly, it was recently reported that both Google and Facebook were bolstering music search and sales offerings, and Google’s apparently includes the use of the iLike player.

In other words: This could get really complicated.

Execs at both MySpace and Microsoft I reached out to declined to comment.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

As Traffic Booms, Is HuffPo Ready to Make Some Real Dough?

Kara Swisher — Tue, 20 Oct 2009 16:21:53 +0000

For the past few months, the Huffington Post has been on a bit of a tear–both in terms of traffic gains and in its hiring of some big talent for key positions.

Now, those execs are focusing on using that consumer momentum to achieve what has eluded the Huffington Post thus far: Making some serious bank from the privately held news and media site.

How to help marketers to better understand the site and, therefore, spur this significant monetization will be his main focus at the Huffington Post, said Greg Coleman to BoomTown in an interview over the weekend.

Coleman–a former Yahoo (YHOO) advertising exec, as well as one for Time Warner (TWX) online unit AOL–was named president and chief revenue officer a month ago by Huffington Post’s new CEO, Eric Hippeau.

Hippeau, who was himself just appointed in June, is another well-known online media exec and has been a big investor and board member of the Huffington Post. (You can read a thorough interview by Staci Kramer with Hippeau on paidContent.)

“It’s important for advertisers to know how big we have gotten, while also highlighting this amazing audience of influencers we have gathered,” said Coleman, in his first media chitchat since taking on the job. “I think it is the beginning of a tipping point.”

Well, of course, Coleman would say that, as the guy looking to drum up interest among marketers in spending their money on the Huffington Post.

But stats seem to indicate that consumers are increasingly liking what the Huffington Post is creating, because it is starting to surpass some well-known media icons on the Web in traffic.

While more of this increase is going to be due to a socialization of the news–the Huffington Post has an aggressive deployment of Facebook Connect called HuffPost Social News–the growth is more about building a brand people trust and seek out.

According to recent reports from both comScore (SCOR) and Nielsen Online, for example, the site just became larger than several online brands of big media companies, such as the Washington Post (WPO), in terms of unique monthly visitors.

In its September report, Nielsen clocked the Huffington Post at 9.47 million uniques, up 26 percent, while the Post site was at 9.2 million–a drop of 30 percent.

According to the Nielsen, the Huffington Post is within spitting distance of USA Today’s Web site (9.9 million), a Gannett (GCI) property.

And, it is bigger than Hearst Newspapers Digital (7.9 million) and the BBC (7.2 million).

For September, comScore has the Huffington Post (at 6.83 million) besting the Post (6.77 million)–as well as WSJ.com (6.7 million), a unit of Dow Jones, which is owned by News Corp. (NWS).

(The Wall Street Journal site, to be fair, makes a chunk of its revenue from subscription fees, rather than relying solely on advertising from traffic like the Huffington Post. And full disclosure: Dow Jones owns this site.)

In any case, big traffic is key for most news sites, and internal numbers from Google (GOOG) Analytics that Huffington Post execs cite are higher, as is typical for most sites, pegging traffic at about 27 million monthly uniques with more than two million reader comments per month.

Huffington Post co-founder and blogging icon Arianna Huffington attributes the recent boost in traffic to the site’s proclivity to “start conversations” that interest readers, such as her recent suggestion that Vice President Joe Biden should resign.

“We are aiming to go beyond just facts, to create a narrative,” said Huffington, who thinks the speed of news helps attract visitors to the site. “We think bringing journalism to a new level is exactly what people are looking for.”

Perhaps. But, even if traffic increases continue to bear her theories out, she and others have said that the Huffington Post still has not been regularly profitable despite doubling annual revenue–mostly in advertising–to what some estimate to be about $8 million in 2009.

While the site is aiming to invest rather than focus too hard on showing profits, Coleman said he would like to make revenue seven times larger in the next years, building on the performance of the site to vaunt past old media giants online.

“This kind of thing is a milestone for the marketing community,” he said. “Our goal is to be the top Internet newspaper, and this points out that we are on our way.”

To do that, he will have to spend some of the $37 million in funding that the Huffington Post has raised from venture investors.

While the edit side is using the money to expand the number of news categories, Coleman said his focus will be on building a higher caliber team of sales and marketing execs with deeper relationships to big clients.

“Unlike selling an auto page on Yahoo (YHOO), our site has a more complex sales process that takes some time for people to understand,” said Coleman. “But once they get it, it should be an easier sale.”

Until then, check out the video of the entire interview I did at the seventh D: All Things Digital conference with Huffington and Washington Post publisher Katharine Weymouth in which they talk about the future of journalism and more:

[ See post to watch video ]

Lonely Planet Names New U.S. Head as Its Digital Strategy Escalates

Kara Swisher — Tue, 13 Oct 2009 05:33:28 +0000

Lonely Planet, best known as a traditional travel guidebook publisher, is announcing a new U.S. head tomorrow, as it increasingly moves to reposition the company as much more of a “cross-media” platform.

John Boris–set to take over today as new managing director of Lonely Planet Americas, based at its Oakland, Calif., office–comes to the company from Zagat Survey, where he was the SVP of marketing and interactive.

Previous to that, Boris worked at 1-800 Flowers and Fresh Direct.

“I’m thrilled to be joining one of the world’s best-loved travel brands at such an exciting time, with Lonely Planet rapidly evolving as a cross-media travel player,” he said in a press release.

As the paid versus free content online debate gets louder over the next year, how well known brands like Lonely Planet–which has a strong reputation among consumers–handle the fallout will be more and more interesting to watch.

Indeed, in recent months, Lonely Planet has been escalating its digital content efforts, which was the initial promise when BBC Worldwide bought 75 percent of the Melbourne, Australia-based company for about $200 million in late 2007.

But the digitization of Lonely Planet’s business, as with many traditional media publishers like it, has been slow going, with 75 percent of its revenue still in print.

While that business remains profitable, the breakdown between print and digital will be changing sooner than later, since digital is where much of the growth is coming from, said CEO Matt Goldberg to me over a recent dinner in San Francisco.

Goldberg–who came to Lonely Planet early this year from Dow Jones, where he was SVP of digital strategy and operations, including for WSJ.com–noted that Lonely Planet’s digital businesses have doubled their revenues to $20 million this year via premium pricing and advertising.

Besides the obvious use of Twitter and Facebook, Goldberg flagged a number of the more promising and innovative digital initiatives now at work at Lonely Planet, especially in its key U.S. market.

They include:

* Leveraging the 700,000 registered members of Lonely Planet’s Thorn Tree community,

* The announcement this week of putting all or part of 600 of its travel guides on the international release of the Amazon (AMZN) Kindle e-reader.

* Work on collaborative trip planning for its “Trippy” gadget, as part of the Google Wave beta launched last week.

* A compass application for Google (GOOG) Android handsets that make use of augmented reality technology to highlight points of interest in cities. As Goldberg described it in an email, travelers will be able to “pan a city destination using the video on their handset and see Lonely Planet recommendations (points of interest from our City Guides) as virtual sticky notes above real live points of interest.”

* Over 500,000 downloads from around 70 premium-priced apps on the iPhone from Apple (AAPL), as well as various location-based guide apps for Nokia (NOK) and BlackBerry from Research in Motion (RIMM).

* Travel music collections featured on Spotify and other online music services.

Goldberg highlighted other interesting ideas, such as an online travel video contest and even a “hack” day in Australia recently, which will be followed by one in the U.S. in the late winter.

While not all of it is going to work, this kind of endless experimentation at Lonely Planet is probably the right way to keep figuring out how to deal with the seismic media shifts that show no sign of abating.

MySpace Poised to Hire New Ad Sales Head as It Preps Music- and Entertainment-Centric Strategy and Redesign

Kara Swisher — Wed, 07 Oct 2009 08:57:04 +0000

In a week, the entire advertising sales staff of MySpace will gather at a swanky new seaside resort about 20 miles south of Los Angeles to get a first glimpse of the fresh direction the company is preparing to take under its new management.

The beleaguered social networking site has been in the midst of an effort to reinvigorate its image, spur innovation in its product and–most of all–pull itself out of a too-long slump, even as longtime rival Facebook has seen explosive growth.

Now, with a new team of execs, the News Corp. (NWS) property is putting the finishing touches on a master plan, which will include a new redesign of its hopelessly messy interface and doubling down on a product strategy that will center on, said one source, “what we own”–namely, music and entertainment.

On the agenda, aptly enough, for the 150 ad sales employees, who will gather at Terranea in Palos Verdes, is Ben Sherwood, author of “The Survivors Club: The Secrets and Science That Could Save Your Life,” and founder of a Web site of the same name that describes itself as “the place for surviving and thriving.”

Also coming to the meeting will be several bands that have successfully leveraged MySpace as a platform, to talk about their experiences and to play for the crowd.

And, perhaps most importantly, the group might also get to meet its new boss by then, as several sources close to the situation said that MySpace has settled on an exec to fill the key job of running its ad business.

While it is unclear if the deal is completely done, sources said MySpace management will announce the pick this week.

Sources added that MySpace has been particularly interested in one exec from Viacom (VIA) and another from Microsoft (MSFT).

While the sources would not name the Viacom exec, several pointed to Keith Lorizio, Microsoft VP of U.S. sales, as someone MySpace has been targeting.

In late August, MySpace sales and marketing head Jeff Berman left the company as MySpace hired MediaLink, a New York- and Los Angeles-based media consultancy, to help get its ad sales business back on track.

That effort has been led by MediaLink President Wenda Millard, who is well known in the ad industry and was longtime leader of the ad sales force at Yahoo (YHOO).

Getting an experienced top ad exec in place will round out a recent spate of new hiring by MySpace, including a new CTO, Alex Maghen, who moved over from its MySpace Music joint venture, and a new CFO, Mark Rosenbaum.

This has been part of a wholesale flushing out of most of the top execs who worked under co-founder and former CEO Chris DeWolfe by new CEO Owen Van Natta.

Van Natta, along with COO Michael Jones and Chief Product Officer Jason Hirschhorn, have been squirreled away since late April, working at cleaning up the company by replacing management, restructuring its various units and cutting costs, including massive layoffs.

They have also been trying to come up with a plan to differentiate MySpace from Facebook, a good strategy since it is now well-nigh impossible for the Beverly Hills-based MySpace to catch up with the Palo Alto, Calif.-based Facebook’s galloping growth.

While the whole new offering will not be rolled out prominently until at least the first quarter of next year, said several sources, some changes will begin sooner, including a gradual redesign of the site.

Under the new plan, said several sources, the main idea will be to shift the focus to engagement over sheer audience numbers. While MySpace is still huge, with about 70 million monthly U.S. visitors, increasing how much time they spend on the site is the goal.

“It’s not like numbers are not important, but the better metric for MySpace will be how involved users are,” said one person close to the situation. “MySpace needs to win on minutes.”

And, rather than the wider and more scattershot approach of past years, the new direction being stressed is more scalable and focused.

“It is not about getting everyone and their mothers on MySpace,” said a source, “but about being a better site to those here.”

That will include stressing “ownership” of online categories, which for MySpace are music and entertainment, with the hope that advertisers will be attracted to more engaged users.

Unlike Facebook, which is often described as a utility platform for communications between friends, sources said MySpace will be aimed more at being a platform for communities of interest.

That includes using tools from other companies, such as MySpace’s recent two-way synch with Twitter, the hot microblogging service, to link those communities.

Presumably, the company’s August purchase of iLike, the social music start-up, is also part of that plan.

“Instead of the ability to just connect friend to friend in a single social graph, this will be about connecting a person to their communities of passion and interest and to others like them anywhere,” said one source.

Music is the obvious key leverage point, the still-bright spot of MySpace, followed by adding big entertainment categories like movies, television, gaming, video and other pop culture arenas.

(BoomTown request: Become the HQ for “Gossip Girl” addicts, um, fans, and I am so there.)

“MySpace should represent pop culture online to customers and advertisers,” said one source. “The core strength has always been music and that is where the site will really excel, because it binds customers to the service.”

The even heavier music focus on the main juggernaut site, noted several sources, does create an odd situation with MySpace Music, the separate joint venture the site has with music labels to create a massive music community.

While sources do not think News Corp. will attempt to suck MySpace Music back into the main site, due to the complex partnership issues, the idea is to make them even more deeply integrated and to sell them to advertisers as one powerful marketing message.

In any case, several sources noted that one of the most successful parts of the new plan has been to convince News Corp. leaders that MySpace does not have to beat Facebook to be successful.

Sooner than later, of course, MySpace has to do just that.

Will it work? Who knows, but said one source close to the situation quite correctly:

“There is no silver bullet for MySpace–it just has to climb back step by step.”

(Full disclosure: News Corp. also owns Dow Jones, which owns this site.)

Video: Mossberg and Patches Opine About AppleFest 2009 at the ATD Annual BBQ

Kara Swisher — Thu, 10 Sep 2009 08:33:30 +0000

Here’s a lovely video BoomTown did last night at our All Things Digital annual BBQ, at which the crackerjack team at our little rogue operation inside Dow Jones goes analog.

As a completely virtual company, it’s nice to get together to gnaw on some ribs and trade tech tales.

Last night, of course, much of the chatter was about what went down at the Apple event in San Francisco yesterday, at which CEO and Supreme Leader Steve Jobs made a grand reappearance onstage after a liver transplant.

“I’m vertical, back at Apple and loving every day of it,” declared Jobs, before introducing a variety of new features and software innovations to the company’s already strong repertoire, most specifically for iTunes and iPods.

(I guess some still stubbornly self-righteous bloggers were a little premature with their hysterical death’s-door assertions about the Silicon Valley icon and business-challenged certainty that Apple would wither too.)

Overall, from reading the coverage about the Apple (AAPL) gathering, the Jobs performance sounded kind of dramatic, even if there was no launch of a new device, such as the coming-up-next mystery iTablet.

Both Walt Mossberg and Digital Daily’s John “Patches” Paczkowski were at the event, along with Mossberg Solution’s Katherine Boehret and our Webmaster, master photog and Newton fanboy, Adam Tow (see his amazing images of the confab here).

(Walt actually punked me at the BBQ by pretending he actually had a demo of the alleged Apple tablet in his bag–at which I almost lunged like a lunatic–when he had no such thing. Ha. Ha.)

In any case, here’s their frank ruminations on what went down–not too much new, really, but still interesting, as always, from Apple.

And, separately, after the Apple event was over, Patches went to a meeting with Palm (PALM) to take a gander at the new Pixi smart phone and gives his first thoughts on that too.

Here’s the video interview:

[ See post to watch video ]

Digital Management Musical Chairs: The Tooth-Free Edition

Kara Swisher — Tue, 08 Sep 2009 13:30:00 +0000

Brad Garlinghouse’s appointment to a new job at AOL today as its new communications czar is yet another sign of an interesting trend for those keeping score of the comings and goings of top Internet execs.

Garlinghouse came to the Time Warner (TWX) online unit after a year-long break, preceded by six years at Yahoo (YHOO).

As anyone who watches the digital space knows by now, this kind of management musical chairs is common and never-ending.

In fact, borrowing a quote by IAC/InterActiveCorp (IACI) CEO and chairman Barry Diller from an onstage interview I did with him at the sixth D: All Things Digital conference and switching out Hollywood for Silicon Valley: “[It] is a community that’s so inbred, it’s a wonder the children have any teeth.”

But, given all the movement of late, this insider seat-switching seems more frantic than ever, as allegiances shift, competitors become friends and colleagues become rivals faster than you can tweet.

When he left Yahoo last summer, in fact, the digital chatter was that Garlinghouse would take a job either as a venture capitalist (he had been one once) or helming a start-up (that too, at Dialpad.com).

In fact, sources said, Garlinghouse had been considering two mobile gigs, but opted for helping to try to overhaul a troubled Web giant.

Fixing messes was the impetus of Owen Van Natta, who left a top job at social networking giant Facebook in early 2008 and by the end of the year, headed over to run Project Playlist, a controversial online music-sharing service.

But then he had hightailed it by spring to try his hand at reviving MySpace, as its CEO.

His boss, News Corp. (NWS) digital head Jon Miller, did the same, getting the hook (unfairly to my mind) at AOL several years ago and then creating an investment firm with former MySpace head Ross Levinsohn.

The pair considered being part of a bid to oust Yahoo management in 2008.

Miller’s freedom lasted only until he got an offer that he presumably could not refuse from News Corp. head Rupert Murdoch recently. (Full disclosure: News Corp. owns Dow Jones, which owns this site.)

The list goes on, chock full of ex-Yahoos, in fact.

Its one-time COO, Dan Rosensweig, left the company in 2006, for example, and joined the well-known private-equity firm, Quadrangle Group.

But, soon enough, he was scooped up by Activision Blizzard (ATVI) to run its Guitar Hero division.

Yahoo Network head Jeff Weiner also departed from the Internet giant, in mid-2008, for a stint at two VC firms.

He landed at LinkedIn, the business-networking service where he was named CEO in late June.

Greg Coleman ran Yahoo ad sales until mid-2007 before taking a job at AOL earlier this year, which he lost after it got new management soon after.

At Yahoo, Coleman sparked with former advertising sales head Wenda Harris Millard, whom he ousted. She went onto Martha Stewart Living Omnimedia (MSO) and left there this spring for the Media Link consultancy.

Presto! She is now helping MySpace’s Van Natta fix the social networking site’s ad business.

Current Yahoo U.S. advertising head Joanne Bradford actually came from Microsoft last summer, via her own short visit to the troubled ad start-up SpotRunner.

Former Yahoo search techie Qi Lu now runs digital for Microsoft (MSFT), along with a big gang of ex-Yahoo techies he has recruited.

And Scott Moore is even better at the switcheroo. He was at Microsoft running MSN U.S. content, switched to Yahoo as its media poobah, left last year to consider a start-up and then headed back to Microsoft as head of U.S. content this year.

But former Google (GOOG) execs have also been busy shuttling hither and yon, mostly to innovative start-ups.

Of course, many find refuge at Facebook (COO Sheryl Sandberg, PR major domo Elliot Schrage and many more) and Twitter (GC Alexander Macgillivray and COO Dick Costolo).

Recent departures–such as Sukhinder Singh Cassidy, who landed at Accel Partners for now–are also likely to find new homes soon enough.

And, of course, there’s always Garlinghouse’s new boss, former Google ad head Tim Armstrong, who took over at AOL earlier this year.

We’ll skip former Joost CEO and former Cisco (CSCO) exec Mike Volpi (who is now a VC); former Netscape Communications/short-term VC/ex-banker/current-for-now CBS (CBS) digital head Quincy Smith; and Joanna Shields, who has worked at Real Networks (RNWK), Google and Bebo (which was bought by AOL)–for now.

Because, around and around and around it always goes, as you can see in this funny video below, which I posted previously:

[Musical Chair designed by Jacob Mathew.]

23andMe Co-Founder Linda Avey Leaves Personal Genetics Start-Up to Focus on Alzheimer's Research

Kara Swisher — Fri, 04 Sep 2009 20:49:13 +0000

BoomTown just got the following email from Anne Wojcicki, co-founder of 23andMe, the personal genetics start-up, about the departure of her co-founder, Linda Avey (pictured here). She will be starting a foundation related to Alzheimer’s disease.

The pair founded the high-profile company–whose Series A investors include Genentech (DNA), Google (GOOG) and New Enterprise Associates, as well as Wojcicki’s husband, Google co-founder Sergey Brin–in 2006.

It has collected almost $23 million in funding.

Avey noted in an email to staff, which is posted in its entirety below: “I also recognize that the company has reached a critical point in its growth where new leadership can take it to the successful heights we all think it can achieve.”

Wojcicki’s email reads, in part:

I wanted to let you know that Linda Avey will be leaving 23andMe to focus her energy on transforming Alzheimer’s research and treatment, leveraging the 23andMe platform. Linda and I have talked about doing research in Alzheimer’s since the inception of the company. Linda, whose father-in-law recently died from the disorder, will be leveraging 23andMe’s platform as she works to revolutionize the research, treatments and prevention for Alzheimer’s.

Linda will be greatly missed by me and my colleagues but we’re glad she will continue to be in a related field, and we are committed to continuing the work that she and I started three years ago.

And here is the email from Avey to the staff, as well as Wojcicki’s below it and then the official press release:

Dear all-

As I trust you all know, 23andMe is very special to me. I also recognize that the company has reached a critical point in its growth where new leadership can take it to the successful heights we all think it can achieve.

I’ve decided that I’d like to focus my efforts on an area that is personally significant and will continue to have a huge impact on our healthcare system–Alzheimer’s disease. Effective today, I’m leaving 23andMe and have begun making plans for the creation of a foundation dedicated to the study of this disorder. The foundation will leverage the research platform we’ve built at 23andMe–the goal is to drive the formation of the world’s largest community of individuals with a family history of Alzheimer’s, empower them with their genetic information and track their brain health using state-of-the-art tools. We’ve always planned to include Alzheimer’s in our 23andWe research mission…I’m just approaching it from a new angle.

Some of you might be aware that my father-in-law suffered from Alzheimer’s and passed away last year. For this reason, Randy and I are motivated to do what we can to improve the understanding of what leads to the debilitating symptoms and what might prevent them from starting in the first place. The ApoE4 association is barely understood but gives us a great starting point.

I’ll miss working with you but will be excited to hear about the progress I know you’ll be making!

All the best,
Linda

Team:

As Linda has told you, she will be leaving 23andMe to focus her energy on transforming Alzheimer’s research and treatment, leveraging the 23andMe platform. While I am quite sad to see her leave I am excited and hopeful as she takes on this mission. As Linda’s co-founder and partner over the last three years, it has been clear that revolutionizing research has been a primary passion. Our drive to change health care has always had roots in our personal lives and we have tried to structure 23andMe so that any individual or organization could actively participate in research. Linda and I have talked about doing research in Alzheimer’s since the inception of the company and the need for the Alzheimer’s community to have a strong leader. With Linda’s involvement, I believe that the APOE4 community could be the first asymptomatic community to successfully develop preventative treatments. I hope that going forward we’ll both be able to shake up and transform the health care space, making health care and treatments better for all.

Linda’s departure is also a sign of 23andMe’s maturation. When we started the company, the personal genetics industry did not exist; now it is a thriving and competitive landscape. Our company has grown and we continue to be an innovative industry leader. While our success has been exceptional, it is also clear we have a lot of work ahead. We have created a significant and empowering tool, but we must find new and better ways to promote the value of knowing your DNA. In the weeks ahead, we will outline a strategy for the company that we believe will make genetics a routine part of health care and will lead us to making significant research discoveries.

Linda has been instrumental in making 23andMe what it is today and we thank her for her passion and dedication to the company. We have many exciting opportunities before us, and I look forward to working with all of you to make 23andMe a spectacular success.

Anne

Linda Avey to Create Alzheimer’s Foundation

Mountain View, CA–September 4, 2009–Linda Avey, co-founder of 23andMe, an industry leader in personal genetics, announced today that she is leaving the company to start a new foundation focused on Alzheimer’s disease. Ms. Avey’s foundation will leverage the 23andMe research platform to search for causes and treatments for the disease, which afflicts more than 5.2 million people in the United States.

Ms. Avey and Anne Wojcicki founded 23andMe together in 2006. The company provides personalized genetic information through DNA analysis and allows individuals to interact with their private information through a variety of web-based tools.

“I could not be more proud of what we have accomplished in the three years since Anne and I created 23andMe, and I am excited to take the next step in applying my experiences to one of the great health challenges of our time,” said Ms. Avey, who has more than 20 years of experience in the biopharmaceutical industry. “There is a clear need for revolutionary research and concentrated effort to confront Alzheimer’s, and we need to start now in order to make meaningful progress. The resources are out there–my goal is to marshal them to find answers for families, like mine, who have lost family members to such a debilitating disease.”

Concurrent with Ms. Avey’s announcement, Ms. Wojcicki said that 23andMe expects to make its genetic data platform available to Ms. Avey’s foundation in order to advance its research.

“Linda has been a true partner with me over these last three years, an innovative leader for our company and our industry, and instrumental in making 23andMe what it is today,” said Wojcicki. “It is only fitting that she will be making full use of our work together and leveraging the 23andMe platform for a tremendous cause. We look forward to joining her as a partner in her efforts.”

Ms. Avey’s departure announced today takes effect immediately.

Here is a video, in two parts, of Avey and Wojcicki demoing some new features of 23andMe at the sixth D: All Things Digital conference in 2008.

In the first one, they introduce 23andMe, explain the main service and ask News Corp. (NWS) head Rupert Murdoch, Walt and me about our tolerance for milk and about our racing abilities. (Full disclosure: News Corp. is the owner of Dow Jones and this Web site.)

In the second one, Avey and Wojcicki survey Murdoch on his genetic traits and show me what genes my kids have in common (and discover that I am not hyperactive).

Here are the D6 demos:

[ See post to watch video ]

Louie Swisher Hearts Redbox–But Hollywood Not So Much

Kara Swisher — Mon, 31 Aug 2009 22:10:02 +0000

If you want to get Hollywood movie studio types irked, mention Google (GOOG). And if you want them steamed, bringing up Netflix (NFLX) will usually work.

But if you want to see the tops of their heads blow off, Redbox is just the ticket.

Except not to their movies, it seems, if the major movie studio execs have their way in an ever-growing legal battle with the DVD-rental kiosk company.

Three of them have become embroiled in lawsuits with Redbox, even as the DVD market contracts.

Well, not for Redbox–which is located in Oakbrook Terrace, Ill., and is wholly owned by Bellevue, Wash.-based Coinstar (CSTR).

It is seeing strong rental growth due to its $1-a-night price for first-run movies, which the company distributes via its 15,000 freestanding machines in supermarkets and convenience stores, as well as in big chains like McDonald’s (MCD), Wal-Mart (WMT) and Walgreens (WAG).

Redbox is arguing that once it buys DVDs from the studios through wholesalers, it can charge any price it wants.

Studios beg to differ, claiming that bargain-basement pricing is hurting the market and that Redbox should not get the goods until after the first month of release of movies into the DVD market.

“These guys are simply grossly undervaluing our content,” said one studio source, in what is a typical sentiment. “We get the windowing model is changing, but we can’t just give these guys our stuff at a low, low price to essentially enable them to give it away…and that’s exactly what they wanted us to do.”

Thus, it’s a perfect set-up for legal high jinks about the issues of steep discounting, windowing and the price for premium content.

Redbox recently sued Warner Home Video, owned by Time Warner (TWX), for denying it the opportunity to buy DVDs without being required to wait a month or more to rent them out.

It has previously gone after NBC Universal’s Universal Studios Home Entertainment, owned by GE (GE) and 20th Century Fox, a unit of News Corp. (NWS), for similar release restrictions.

And while some studios are holding fast to fighting price declines represented by consumer-friendly, idiot-proof tech solutions like Redbox, others are not.

Redbox has inked deals with Sony (SNE), Lions Gate (LGF), Paramount, a unit of Viacom (VIA), and also gets movies from Disney (DIS).

It’s a fascinating case to watch–yet another wrinkle in the what-is-content-really-worth question that has been plaguing all traditional media.

Unfortunately for those companies, the kids seem to love it, as you will see from this video I did while renting movies at our local Safeway (SWY) with my seven-year-old son, Louie, at a small competitor to Redbox with about 1,400 outlets called DVDPlay.

We use both, but Louie–like a lot of consumers–is most definitely a fan of the Redbox method.

Here’s the video:

[ See post to watch video ]

[Full disclosure: News Corp. owns Dow Jones, which owns this site.]

Media Link's Michael Kassan (in NYC) and Wenda Millard (From a Boat Somewhere Near Slovenia) Speak About Their New MySpace Gig!

Kara Swisher — Thu, 20 Aug 2009 23:48:36 +0000

Wenda Harris Millard–calling in to BoomTown HQ from a cruise either on the way to or the way from Slovenia, since she said she was not exactly sure, given that it was the middle of the night there–wanted to make one thing clear:

She is still working for her dozens of other clients at Media Link as its president, but also has a big new gig helping MySpace get its advertising sales house in order, especially related to strategy and execution.

“I guess it’s a matter of semantics, but I will be leading the engagement,” said Millard. “But, we have a whole team here too, and I am also still working for all our great clients.”

Okay, people?!? Which is, in Slovenian, in case anyone asks there, Wenda: Vidirati narod?

Which is precisely what All Things Digital had written in a previous post: That Media Link was the hired gun on a strategic basis, with Millard as the point person on fixing the ad sales structure, strategy and more at MySpace.

In an internal memo today, MySpace CEO Owen Van Natta said the same: “As part of this process on an interim basis the firm will help manage our day-to-day sales organization under the leadership of Wenda Harris Millard.”

Still, the New York and Los Angeles media consultancy definitely wanted to make clear, both internally and externally, that their hiring had nothing to do with the departure today of MySpace Sales and Marketing President Jeff Berman.

And, indeed, according to both Media Link founder and Chairman Michael Kassan, whom I also spoke with today, Media Link had been talking to MySpace–including Berman, who decided to finally leave only today–since January.

Got it! Media Link also did not hip-check Berman to the curb!

Still, it is a huge and deeply involved job for Media Link, and especially Millard, who will be working with ad sales until a replacement is found for Berman, and then after.

Millard stressed that her new role does not mean spending all her time cussing out ad sales folks who did not make their numbers.

“Media Link will be working on big-picture strategy related to ad sales, product development and structure,” she said. “But, of course, I will be very involved and this is a huge assignment.”

She certainly has the experience to take on the ad troubles of MySpace.

Millard–who was the top ad exec at Yahoo (YHOO) in its glory days and who recently left her job as co-CEO of Martha Stewart Living Omnimedia (MSO)–has been a longtime online exec, working at Ziff Davis Media and DoubleClick in the very early days of the Web. She was also chairman of the Interactive Advertising Bureau last year until this past April.

But she also noted that she did not want people to be confused, pointing out that many others at Media Link will also be working on the fix-MySpace assignment too, even as she will also be tending to Media Link’s stable of clients.

“This is an engagement to help its management drive forward a lot of initiatives,” said Millard. “It is the management of MySpace who are the ones in charge.”

It’s a point that Media Link’s Kassan also made in a conversation I had with him today.

“I am very excited, since it is an important strategic assignment and part of the promise of Wenda’s unique set of skills,” he said, acknowledging that this was an unusually large job, very complex and unique for Media Link. “That said, this kind of work is our sweet spot.”

(Full disclosure: News Corp. owns MySpace and Dow Jones, which owns this site.)

MySpace to Hire Media Link (and Millard) to Fix Ad Sales; Berman Out

Kara Swisher — Thu, 20 Aug 2009 18:26:35 +0000

UPDATE: In an internal memo, MySpace is now telling employees that current ad sales head Jeff Berman is leaving the company.

In a move that will surely have Madison Avenue talking, well-known online advertising sales executive Wenda Harris Millard (pictured here)–who is now president of New York- and Los Angeles-based media consultancy Media Link–is poised to take over all advertising sales at MySpace, sources said.

But, in an unusual twist, she will remain in her job at Media Link, which has also been hired by MySpace to advise on restructuring the social networking company’s salesforce.

Sources said the arrangement is expected to be announced sometime today.

While details are still being hashed out, Millard–who was the top ad exec at Yahoo (YHOO) in its glory days and who recently left her job as co-CEO of Martha Stewart Living Omnimedia (MSO)–will apparently report to MySpace CEO Owen Van Natta directly.

In turn, all regional advertising vice presidents at MySpace will report to her. Millard is likely to work out of New York, where she lives and where the Beverly Hills, Calif.-based MySpace also has offices.

(You can see a video interview that BoomTown did with Millard a year ago below, when she was still at MSLO.)

This is a big coup for Media Link, which was founded by Michael Kassan, given that it will essentially be running a major part of the business of MySpace as MySpace seeks to reinvigorate itself, spur innovation and reset its product strategy.

Media Link hired Millard in April, which turned out to be a good move as she appeared to be the obvious draw for MySpace, as well as News Corp. (NWS) execs.

She is well known to them, as well as to many in both the Internet and advertising industries. Millard has been a longtime online exec, working at Ziff Davis Media and DoubleClick in the very early days of the Web. She was also chairman of the Interactive Advertising Bureau last year until this past April.

MySpace also reportedly talked to several big online advertising sales execs like Millard about the job, according to several sources outside the company.

This development now leaves the fate of President of Sales and Marketing Jeff Berman (pictured here) unclear.

But several sources told me Berman–whom I wrote earlier this summer was “rumored to be on the bubble,” but remaining for the time being–has been actively looking for a new job in the past few weeks and even told at least one person he spoke to that he was going to be “gone from MySpace by Labor Day.”

Probably sooner, now that MySpace is about to hire Millard and her firm to take over a big part of his job.

Yesterday, MySpace made another splashy move by buying the social music site, iLike, the first acquisition by its new exec team, as part of a move to push the “socialization of content.”

In a statement in the press release about the iLike acquisition, Van Natta might be seen as tipping his hand a little bit: “We are deeply committed to bringing world class talent into all areas of the company….”

Seasoned and experienced management was a point he also emphasized in a conference call with media yesterday about the iLike deal.

Millard is certainly that.

And, in fact, there has been a clearing out of almost all of MySpace’s former top execs and replacement with new blood–such as former Apple (AAPL), Amazon (AMZN) and Facebook alum Katie Geminder as SVP of user experience and design and Mike Macadaan, who is VP of product.

It is a process that is doubtlessly going to continue as Millard comes in and cleans house–and it will be interesting to see just what talent comes in next.

Here’s Millard in action in my video interview with her last July, in which she talks about advertising on social networking sites and lots of other stuff:

[ See post to watch video ]

(Full disclosure: News Corp., owner of MySpace, also owns Dow Jones, which owns this site.)

Mark Cuban Makes the Best Point of All About Charging for Content: Use Your Imagination!

Kara Swisher — Mon, 10 Aug 2009 13:17:53 +0000

Yesterday–in a somewhat rambling but also riveting blog post about charging for content–serial entrepreneur and perennial gadfly Mark Cuban made a very important point that execs at every large media company should take to heart as they try to cope with the digital challenge.

Use your noggins, why dontcha?

Cuban aimed the piece at News Corp. head Rupert Murdoch, who has been the most vocal media mogul of late about the issue of getting paid online for the copious amount of original content the various parts of the media giant he runs make.

(Such as this site, which is owned by Dow Jones, which is owned by News Corp.)

“Rupert, you didn’t ask my opinion on this, but since when has that ever stopped me,” wrote Cuban in his post titled “My Advice to Fox & MySpace on Selling Content–Yes You Can.” “First the good news. You can sell content on the internet. People pay for content on and off the internet every second of every day. It’s easy to do. If you do it right.”

Then, Cuban followed up with a long series of suggestions–in general, Cuban had more interesting ideas in one post than I have collectively heard in a while.

Like all good brainstorms, some are defensive moves, some offensive, some very interesting and some probably unworkable.

But, in this time of massive change, all are well worth considering because Cuban’s piece had the feel of throwing a whole bunch of ideas on the table and just knocking anything around–with the goal of creating a more important sense of discovery and entrepreneurialism.

It’s kind of like that great scene in the movie, “Apollo 13,” when the engineers had to come up with a solution for a dire problem, so they threw a pile of doodads on the table and started tinkering fast.

I dearly hope that is precisely what’s going on inside all the various media companies as they seek to maneuver the storm-tossed seas of change they find themselves in instead of the more typical inclination to throw blame in a time of crisis.

The problem, as it always turns out, is that industries in trouble always tend to shoot down ideas as they arise rather than embrace even the truly insane ones–one of which might turn out to be the innovation needed.

As Cuban correctly pointed out, that is often due to infighting at big corporations.

To the negative, I saw that up close and personal a half-dozen years ago as AOL was systematically dismembered at Time Warner (TWX), due to very real wounds from the disastrous merger, at the exact moment when everyone should have been pulling for it.

To the positive, it is clear that the many failings of Microsoft (MSFT) in the search game were what finally got it to take a greenfields approach with its recently announced Bing, which is finally a competitive product.

I like that kind of gumption, and it was nice to see that in just one blog post Cuban could come up with at least 10 ideas, many of which would doubtlessly not fly.

In fact, after one, Cuban wrote: “I don’t know if it will work, but it is sure worth exploring!”

It sure is.

Here is that clip from “Apollo 13,” as well as the full video of the interview Walt Mossberg and I did with the voluble Cuban on the issues facing media giants at the seventh D: All Things Digital conference in May:

Apollo 13

Cuban at D7

[ See post to watch video ]

New ATD Features: Topic Pages and Finding Jobs (No, Not Steve!)

Kara Swisher — Tue, 30 Jun 2009 16:57:42 +0000

Here at All Things Digital, we are always fussing away on our site, making a variety of improvements regularly to deliver a better experience to our readers.

In that vein, we have recently added two new features over the last few weeks, both of which deserve a look-see: Topic pages and job listings.

The first is our attempt to offer a new and easier way for the ATD audience to navigate specific information, by gathering in one place a selection of blogs, columns, videos and photos on the site, all related to a single popular topic, all without requiring a user to search via keywords.

The variety of our topic pages will grow over time. But right now we have special pages for the Apple (AAPL) iPhone 3GS, the Palm (PALM) Pre, the new Bing search service from Microsoft (MSFT) and news from Apple’s recent Worldwide Developers Conference.

Secondly, we’ve partnered with Simply Hired to offer paid job listings on AllThingsD.com, right from the front page. Starting this week, you’ll find Simply Hired widgets with current job opportunities on pages across our site, including here.

Recruiters can post jobs directly to the ATD jobs page, and these listings are also distributed to more than 5,000 partner sites in Simply Hired’s network, including GigaOM, Mashable and WashingtonPost.com.

(Full disclosure: Simply Hired, which is based in Mountain View, Calif., has raised some of its funding from the News Corp. (NWS) digital unit, Fox Interactive Media. News Corp. also owns Dow Jones, which owns this site.)

News Corp. Chief Digital Officer Jon Miller and MySpace CEO Owen Van Natta: The Full D7 Session

Kara Swisher — Mon, 29 Jun 2009 10:53:14 +0000

Over the last weeks, News Corp. Chief Digital Officer Jon Miller and MySpace CEO Owen Van Natta have had their hands full directing massive layoffs at the flagship social-networking site, as well as throughout the Fox Interactive Media division.

The pair discussed the many challenges faced by the giant media company in its digital enterprises in an onstage interview with Walt Mossberg and me at the seventh D: All Things Digital conference last month.

That included everything from how News Corp. (NWS) online content is paid for to the need for MySpace to innovate, as Facebook has surpassed it.

Here’s the video of the full D7 session:

[ See post to watch video ]

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

Photobucket Layoffs Today: One-Third of Staff Let Go; Other FIM Units Also Impacted

Kara Swisher — Thu, 25 Jun 2009 21:19:20 +0000

The layoffs at Fox Interactive Media moved on to Photobucket today, as one-third of its staff of about 120 were let go, sources close to the situation said.

The photo- and video-hosting service was bought for $250 million in mid-2007 by News Corp. (NWS).

A FIM spokesperson confirmed the layoffs after being contacted by BoomTown, but declined to give specific numbers. But sources told me a total of up to 75 people were fired.

“As part of our continuing review of each of the FIM business units, employees were informed of job cuts today at several of our sites. We made these cuts to ensure that our resources are aligned properly with our business goals, and at a scale that will enable us to operate as efficiently as possible,” said the FIM spokesperson.

It is all part of a series of job cuts that are now hitting FIM properties other than MySpace.

The social-networking site has seen massive layoffs over the last two weeks, both in the U.S. and internationally.

Photobucket was hardest kicked, with 35 people fired, while other properties, such as the IGN videogame and entertainment unit, had the other layoffs spread among them.

Cuts at IGN, for example, were minimal, and it was also hiring in other parts of its business.

FIM’s whole structure itself is undergoing a shift, along with a likely name change, as BoomTown previously reported.

(Full disclosure: News Corp. owns Dow Jones, which owns this site.)

Weiner Nabs CEO Job at LinkedIn; Hoffman to Executive Chairman (Plus the Official Press Release)

Kara Swisher — Wed, 24 Jun 2009 18:00:22 +0000

In a move that many in the Silicon Valley chattering classes were certainly wondering about, former Yahoo exec Jeff Weiner has been named CEO of LinkedIn, the largest social network focused on professionals.

Weiner (pictured here), 39, who has been the president of the Mountain View, Calif.-based company since late last year, will also join the board of directors.

Current CEO, Chairman and founder Reid Hoffman–whose second title will be slightly changed to executive chairman and who will continue to work on a daily basis at LinkedIn–said the move was not part of the preparations for an initial public offering but because Weiner had already been handling the duties of CEO for some time.

“Jeff has really had our team reporting to him and has been doing a lot of what a CEO does for months now,” said Hoffman. “So, we wanted to project that to the world what was already projected internally.”

Before coming to LinkedIn, Weiner ran the Network division of Yahoo (YHOO), putting him in charge of most of its consumer offerings.

He left the Internet giant a year ago and did a brief stint as an executive-in-residence at two Silicon Valley venture firms–Accel Partners and Greylock Partners–before joining Linked in December.

Weiner listed a number of priorities moving forward, including scaling the network, increasing the user base and engagement, improving user experience and product ease, juicing up search, further expanding internationally and strengthening the platform and third-party developer relationships.

Phew, but he left out improving the food in the cafeteria!

“We have done a lot over the last six months to really grow this professional network,” said Weiner, who noted that the company had beaten its internal projections. “And we are positioned well to reach our full potential.”

For now, to both Weiner and Hoffman, that means growth and further girding the bottom line.

LinkedIn, which said it has 42 million members world-wide, has a more diversified business model than other social-networking sites, with “three lines of revenue, including premium subscriptions, corporate solutions and advertising.”

Hoffman said the company was profitable in 2008 and is expected to be profitable in 2009, although he declined to provide either revenue or profit figures.

One striking figure, of course, is the more than $100 million in funding LinkedIn has gotten since it was founded, which had given it a massive valuation of over $1 billion.

That’s why many have been watching for either an IPO or a sale of LinkedIn. Many possible acquirers have been bandied about in the past, including News Corp. (NWS), which owns Dow Jones, owner of this site.

But Hoffman discounted either path for now.

“We are entirely focused on building the company and not on the run-up you make for a public offering,” he said.

Added Weiner: “We are working on how you build a strong company for the long term.”

Here’s the official press release on the news:

LinkedIn Names Jeff Weiner Chief Executive Officer

Co-founder Reid Hoffman continues as Executive Chairman

Mountain View, CA–June 24, 2009–LinkedIn, the world’s largest professional network, today announced that Jeff Weiner has been named LinkedIn’s chief executive officer and appointed to the board of directors. Reid Hoffman will remain focused on LinkedIn in his day-to-day role as founder and executive chairman.

Since joining LinkedIn as interim president in January 2009, Weiner has overseen all operations and played a defining role in developing and executing the company’s strategy to address the accelerating demand for LinkedIn’s products and services on a global basis. “Working closely with Reid and the team over the past six months exceeded all of my expectations coming into the company,” said Weiner. “I couldn’t be more excited about our progress to date, and the opportunity ahead of us.”

“LinkedIn was founded to harness the power of the internet to create a tool that would help individuals become more effective and successful professionals,” said Reid Hoffman, co-founder and executive chairman, LinkedIn. “Over the past six months, Jeff has done an exceptional job leading the company and I look forward to continuing the work that we have begun together.”

In the past year, LinkedIn has achieved records across virtually all key operating and financial metrics, most recently exceeding 42 million global members. LinkedIn has an established business model with three lines of revenue, including premium subscriptions, corporate solutions and advertising. The company operated profitably in 2008 and is expected to be profitable in 2009. LinkedIn has secured more than $100 million in funding from some of the world’s premiere investors.

Weiner brings more than 14 years of consumer web experience to the position. Prior to joining LinkedIn as interim president, Weiner was executive in residence at Accel Partners and Greylock Partners. He had previously held key leadership roles at Yahoo!, most recently serving as executive vice president of Yahoo!’s Network Division with responsibility for Yahoo!’s consumer web product portfolio, including Yahoo!’s Front Page, Mail, Search and Media products. In addition to LinkedIn, Weiner serves on the boards of DonorsChoose.org and Malaria No More. For more information, please see Jeff Weiner’s LinkedIn profile at: http://www.linkedin.com/in/jeffweiner08.