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Read, Share and Destroy

The social web’s economics are paradoxical: The more it blossoms, the more it destroys value. In recent months, we’ve seen a flurry of innovative tools for reading and sharing contents. Or, even better, for basing one’s readings on other people’s shared contents. In Web 2.5 parlance, this is called Social Reading. For this, the obvious vector of choice is the iPad: it possesses a (so far) unparalleled ability to transform online reading into a cozy lean-back experience.

A year after the iPad’s launch, the app store is filled with a swarm of forcefully competitive offerings. Like everyone else in the business, I stuffed my device with about ten (and counting) such apps, gathered in a “Daily Me” folder.

Last week, I dissected Flipboard, one my favorites because of its simplicity, neat look and speed. But I’m also enjoying News360, a Russian crawler that scans more 100,000 sources (“200,000 in the next few months…”). News 360 adds a semantic layer whose purported goal, in short, is to increase relevancy.  Zite carries spectacular personalization features as well as Cease and Desists Letters from publishers (see Zite Response here).
Taptu is a more recent one. It takes a further step in customization by using the most advanced graphical features found in iOS. Many of these mobile aggregators are available on Android as well.

All of theses apps start with the same raw material. They collect and rearrange RSS feeds, they crawl Twitter or Facebook streams.  Unfortunately, from a news publisher vantage point, all these aggregating apps kill value by removing ads from the articles they assemble for our reading pleasure. In order to fit their elegant and efficient layout, these apps remove “visual noise”, that is all these “annoying” ads.

The paradoxical beauty of today’s web contents is this: On the one hand, 95% of all revenues are still ad-related. On the other, that same content becomes easier to read it without commercial distractions. Publishers didn’t merely accept it, they encouraged it. I already mentioned the negative effect of generous RSS feeds on the business: see RSS Lenin’s Rope. At first, the hijacking of RSS feeds by a new breed of apps was seen as an unfortunate consequence of publishers’ naïveté. After all, when the RSS mechanism was invented more than ten years ago, the idea of repurposing it into a bespoke e-journal wasn’t on anyone’s mind. Now, the media industry faces a completely different picture. Publishers of expensive contents can’t even console themselves by fantasizing their promiscuous supply of RSS links will bring back traffic. RSS super-readers are mostly self-contained and do not send any traffic to anyone else. More

Flipboard: Threat and Opportunity

Every media company should be afraid of Flipboard. The Palo Alto startup epitomizes the best and the worst of the internet. The best is for the user. The worst is for the content providers that feed its stunning expansion without getting a dime in return. According to Kara Swisher ‘s AllThingsD, nine months after launching its first version, Flipboard’s new $50m financing round gives the company a €200m valuation.

Many newspapers or magazines carrying hundreds of journalists can’t get a €200m valuation today. Last year, for the Groupe Le Monde, an investment bank memo set a valuation of approximately $100m (net of its $86m debt at the time, to be precise). That was for a 644 journalists multimedia company – OK, one that had been badly managed for years. Still, Flipboard is a 32-people startup with a single product and no revenue yet.

So, what’s the fuss about?

The answer is a simple one: Flipboard is THE product any big media company or, better, any group of media companies should have invented. It’s an iPad application (soon to be supplemented by an iPhone version), it allows readers to aggregate any sources they want: social medias such as Twitter, Facebook, Flickr or any combination of RSS feeds. No need to remember the feed’s often-complicated URL, Flipboard searches it for you and puts the result in a neat eBook-like layout. A striking example: the Google Reader it connects you to suddenly morphs from its Icelandic look into a cozy and elegant set of pages that you actually flip. Flipboard most visible feature is an interface that transform this:

Into this:

All implemented with near perfection. No flickering, no hiccups when a page resizes or layouts adjust. More