Thursday, March 29, 2007

See me, pay me: eBay blends Skype and PayPal

from Blogging Stocks by Beth Gaston Moon Filed under: Products and services, Consumer experience, Competitive strategy, eBay (EBAY), Next big thingOne of my closest friends, Liz, is a speech pathologist for young children and doesn't have much need for computers. I've taught her all about iTunes, wireless networks, and CD burning, but several months ago she introduced me to Skype. Her husband's sister and brother-in-law currently live and work in Tokyo, so the Internet telephony feature has been a lifesaver. They can remain in close contract, even with the 12-hour time difference, and it's free of charge. Plus, there's a visual element unavailable over traditional telecom wires. Earlier today, Melly Alazraki reported that online auctioneer eBay Inc. (NASDAQ: EBAY), the parent of Skype, has released a new version that incorporates the PayPal online payment feature. Skype users will now be able to transfer money back and forth using PayPal accounts, but this is only the tip of the iceberg. EBAY officials are planning on blending the two services more down the line; a spokesperson noted that "We hope that adding this capability will result in a better, more enriching experience for both Skype and PayPal users, which is crucial to extending our leadership positions in the communications and payments markets." This new feature will make it easier for my friend's sister-in-law to contribute money to her nieces' college funds (did I mention Liz is the mother of triplet girls? No wonder they don't have time to fiddle around with iTunes). EBAY shares are fractionally higher in early trading and continue to fight toward the $35 level. This is the location of the stock's 20-month moving average and is also home to hefty out-of-the-money call open interest in the April and July options series. Beth Gaston Moon is an analyst at Schaeffer's Investment Research.

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Wednesday, March 28, 2007

Jott + Gmail = to-do list by phone

from Lifehacker A blogger at Studentlinc explains how he combined Jott and Gmail to create a to-do list he can add to just by making a phone call. Jott, as you may recall, is a free service that transcribes phone messages and sends the text to you via e-mail. The trick here is to create a Jott-specific label in Gmail, then set up your Jott account to send messages to that address. One click of the Jott label will reveal all your to-dos. And you can "cross one off" by deleting the e-mail. I'm a huge fan of using Jott to send myself reminders. This takes the idea one step further by leveraging Gmail's labels. Know any other Jott hacks? Put 'em in the comments. — Rick Broida Creating My ToDo list Through Jott and Gmail [Studentlinc via lifehack.org]

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Advertisers Fleeing TV, Radio for Internet, etc.

from Internet Outsider by Henry Blodget Emily Steel of the WSJ reported startling numbers from TNS Media Intelligence showing just how fast major advertisers are pulling money out of traditional media and throwing it into paid search, digital media, and other "unmeasured" advertising. This trend has been underway for years, and the figures are backward-looking, but it's no wonder that traditional media conglomerates like Viacom are starting to panic: In a sign of how major advertisers are shifting money out of traditional media, ad tracking firm TNS Media Intelligence reported that the nation's 50 biggest advertisers cut their spending on "measured" media such as TV, print and Internet display ads by 1.5% in 2006 -- though U.S. ad spending grew 4.1% overall. While some of the decline may reflect overall cutbacks in ad spending by big marketers, it likely signals that big companies such as Procter & Gamble are reallocating some of their ad budgets to new Internet ad venues which aren't measured by TNS -- such as paid-search advertising, social networking and online video. Not surprisingly, the report showed that growth in ad spending on traditional media, particularly newspapers and radio, continued to slow dramatically while spending on Internet display ads is accelerating. But it also highlighted a significant slowdown in ad growth among cable channels, after several years of robust increases.

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SkypeFind + SkypePrime = Skype is Desperate

from Internet Outsider by Henry Blodget In a move that says more about the revenue potential of its core business than any numbers reported to date, Skype announced the launch of two new products that have little to do with the core service and are already widely available elsewhere: local product reviews and a monetize-yourself expert network directory. This strategy, of course, mimics the one that resulted in eBay buying Skype in the first place ("Core business decelerating? Quick, acquire a fast-growing company in a completely unrelated business and then think of a way to explain it!"). Just because there is precedent for this strategy doesn't mean it's a good one. The local restaurant/product/etc review business is a tough nut to crack, and companies with far more resources than Skype's have found it slow going. Keen and other companies, meanwhile, have been at the telephone-expert opportunity for years, and they haven't hit the jackpot. If Skype didn't have another business to run, none of this would matter. But it does. And this Skype user, at least, can think of a hundred things that Skype could do to improve its basic service before it rushes off to compete with Google, Yahoo, Ingenio, and others in un-related businesses. (Such as? Such as this wicked-cool one-number-forever service offered by GrandCentral) So then why would Skype do this? Perhaps because, as its skeptics have long suggested, it is finding VOIP revenue hard to generate. The last batch of numbers made it look as though things were fine, but today's announcements suggest that they aren't.

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