Is super-sizing your funds a way to create venture runway to steer past or through the downturn and stay competitive in the global market? Many startups - like Mahalo, Ning and LinkedIn - pride themselves on raising enough funding to survive the nuclear winter of late 2008 and basically all of 2009. Facebook decided to add runway and incent its employees through a follow-on $100 million passive investment from DST, Russia’s Digital Sky Technologies group, who also put $180 million into Zynga in December.

Last Tuesday, Intel Capital and 24 VC firms set to put $3.5 billion over two years into US startups to bump up America’s competitive edge. Intel Capital is earmarking $200 million individually.

Via the NYT: in a program called the Invest in America Alliance, Cisco, Intel, Google and Microsoft, among other big tech employers, are hiring 10,500 US college tech grads to regain international ground lost. Per Intel’s Paul Otellini:

Unfortunately, long-term investments in education, research, digital technology and human capital have been steadily declining in the U.S. So, too, has the commitment to policies that made us such an entrepreneurial powerhouse for more than a century.

As many VCs raise more to create investment mines in nascent countries such as India and China, the market seems to be correcting in trending tides: first startups who squirreled away cash, Angel capital/investment groups who are finding High Wealth Individuals (HWIs) looking for early discounts, tech companies seeing their international talent and US competitive edges decreasing, and now VCs who see value in creating big funds.  

With the new Apple iPad receiving an iHype or iYawn from the tech and media communities, a former colleague and Applephile, Patrick Kearney, suggested that Apple was crazy not to just acquire Adobe and own/integrate Flash. I counterpointed via the socialnet, that Adobe would be more integral to Google’s apps and offer a serious checkmate on Steve Jobs’ ability to close out his Apple hardware and software ecosystem.

The Google Value in Owning Adobe:

1. Keeps Google intrinsic to Apple, especially if Bing replaces Google Search across Safari, iPhone, iPad browsers and devices.
2. Adobe owns Omniture, an online marketing, data mining and analytics company, which it picked up in September 2009. Like Google’s acquisition of Urchin which became an invite-only Google Analytics and is now free for anyone. Omniture could be the premium or pro solution for big brands that need the stepabove solution, and of course crave CRM. It’s more behavioral, offers paid SEO across all search platforms, so it fits accretively.
3. Launch Google lite version of Photoshop and Dreamweaver (and…?) for its Google Apps. Many people are moving over to Gimp, an open source Photoshop design app, from outdated versions of Adobe’s Photoshop. This would democratize the products, while still offering premium versions that require a monthly subscription to remove the contextual ads and continue to innovate the product features for power-users before they go mainstream and free. Think of it as R&D for the premium, paying crowd who want the full version, and then as features become common, they go to the open, Google app public. This model of lite versus full versions is working well for the Apple Apps Store, and could move to an online subscription model to avoid distribution fulfillment and other retail packaging costs.
4. Ownership of Flash enhances YouTube’s dominance in online video. Pretty clear, Google labs up Flash internally and figures out ways to make it pay out more for its slowly monetizing video flagship. YouTube’s choice advertisers get premium Flash benefits; innovations trickle down to other top UGC performers.
5. Google Phones benefit from mobile improvements to Flash. The Android and Nexus One become more marketable, and Google licenses Flash to the Blackberries and other mobile players.
6. And, of course, the obvious: every media-savvy site uses Flash and it rolls up 75% of online video, plus marketers like flashy display banners, so Google owns more of the food chain - from media co’s to video players to brands and their agencies looking to stand out in a very noisy internet environment.

If the social or virtual goods market is exploding, expect it to also affect content online. Find a way to commoditize virtual content. So forget the Zygna virtual goodsvilles for a second, and start seeing 2010 as the  year of ubiquitous “content farming” - where all of the serious digital publishers start long-term planning. Writers and journalists will be told by their editors to create articles that - unless tabloid topical in nature - hold future or lifetime value. I.e., articles that stand the test of time, they don’t rest after a week, but gain continued readings  culminating in a heady 50,000 and up read count. Writers will be paid on ultimates: initial viewings, repeat viewings, sharing via social outlets,

The value of these lifetime posts? Well, to a Demand Media/Studios, AOL, Mahalo or similar, it’s a matter of quality (and quantity), think of it as quality based on what people are organically searching on Google, and quantity in terms of creating enough of a base of content that the YouTube’s of the world treat you as regulars. As YouTube’s video search is becoming a natural extension of text search, the ability to create posts in text and video is rapidly changing the landscape of content consumption. Users will start with the 10-step best of written articles, then graduate to video tutorials leading eventually to the user referring the post to others, include religious comment reading and the potential original user comment.

Sites like Huffington Post, the Gawker Network and other blog networks (blog nets) have been built on aggregated editorials - e.g., taking original posts from other relatively well funded or traditional media outlets and adding a little personal spin. That approach, while it’s worked out to a recent $300M valuation for Gawker’s templated Movable Type-hacked sites, may be changing as advertisers and publishers start jumping on the long tailed horse.  

A new take on the Nike Plus (Nike +) physical tracking device has finally gone into fulfillment on its pre-orders. I am playing with confirming my pre-order within the week - right in time for CES, but had to wait a very long while for the pre-order to commit.

As a media + lifestyle company, New Medici tracks innovation that crosses between media consumption and lifestyle products, so when we put in our pre-order a year ago, we - like many others - were not impressed that they ran nearly a year late on deployment without reaching out to the interested buying audience.

Now the pre-order confirmation has arrived, but that confirmation hiatus makes the transaction seem a little risky, even for a startup competing with Nike/Apple and Philips.

However, the Fitbit dashboard, the sleep-tracking and exercise analytics - we like that one of the reviews below called it “Google Analytics for the body” - make it something new and entrepreneurial, plus the product design and wireless connections are pretty unique.

A screenshot, but if this truly tracks our every step, bite and snore it will be worth the c-note ($100) price tag amortized over your health across several years.

A must-view from the Monaco Media Forum: Arianna Huffington from Huffington Post debating with Axel Spring AG CEO Mathias Dopfner, who runs one of the largest newspaper publishing companies in Europe. A very sophisticated debate on traditional publishing versus internet/aggregated or citizen journalism; plus, Arianna’s key quote on “traditional media versus digital media: ADD versus OCD.”

Meet Dave’s head may be big, but his paydays are getting smaller… The NYT recently took on an ongoing trend story that New Medici has brought up in relation to the talent agencies: the downward spiral of A-list (with grade inflation forcing some B-listing) talent compensation. It’s definitely a “starpower brownout” in terms of how talent is being relegated to the coach seats of the Hollywood pay-or-play bus. Star vehicles, aka films, from the likes of A-listers Jim Carrey, Tom Cruise, Adam Sandler, John Travolta and even Denzel Washington have fallen in audience regard. Studios while not necessarily going “indie” in terms of concept, are definitely benching high-end talent in favor of niche and sometimes, ensemble casting. Witness the JJ Abrams, Judd Apatow (minus his latest), Quentin Tarantino, Michael Bay’s successes of late. Yes, Inglourious Basterds (Acterds?) leveraged Pitt’s name, but people went for Tarantino’s take on WWII. Bay’s career has been resuscitated via Hasbro and one assumes some behind-the-scenes’ producing from Spielberg. Abrams’ Cloverdale and Apatow’s use of young, gross-out talent is assuredly making studios and talent agencies rethink their strategies.  

Woke up this am, and found the excellent SXSW PanelPicker via @ischafer (Ian Schafer from Deep Focus) recommending the PanelPicker conference scheduling site. Now here’’s a topic that would engage me!

Multi-Picture Your Media: Marketing & Distribution in a Multi-Platform World

Description:
With the film and tv markets feeling the struggle of lowered DVD expectations, less foreign money and tighter windows in marketing and distribution, how can a filmmaker make a creative dent, much less drive a theatrical release? We’ll discuss the traditional “multi-picture” play with an eye to creating a definitive niche, an aggregated audience and a release schedule that exhibitors, film buyers and studios have to pay attention to. From Robert Rodriguez’s “El Mariachi” to Peter Jackson produced “District 9″ - an interactive-focused walkthru on how to attract publicity, marketing and distribution using multi-platform next-generation practices.  

Via the NYT’s The Weinsteins Scramble to Regain a Golden Touch in Hollywood story, there’s more personality restructuring going on within the Weinstein Company: talk of the relatively new “newco” being stretched too thin in creating a “Barry Diller-style conglomerate” with the 2005 $1 billion in private equity from Goldman Sachs, which Joe Ravitch set up. Ravitch is now working with William Morris Endeavor. A few directors “made” by the Weinsteins, via Miramax/Disney days, impart that the guerilla-style of old, indie studio days needs to return. Kevin Smith, following “Zack and Miri Make a Porno,” suggests that the brothers succeeded when they were hungry, but now are “starving and desperate.” Harsh but perhaps realistic.  

While the luxury industry has not been as hard hit as most enterprises, the crisis has had it’s impact. Some luxury goods manufactures have spotted the opportunity to slug it out by not reducing their skilled labor force but freezing hiring in most other areas. Luxury buyers in Russia and Eastern Europe have been the hardest to drive to the stores, yet declines in most segments have only been in the order of 10-15% in the region. According to CPP Management Consultants, the period February-May showed the decreases in key areas being as low as 5%. Asia has held steady. In fact, analysts believe most of the growth ahead will come from the BRIC countries (Brazil, Russia, India and China). According to Bain and Co. Brazil and China will be the two fastest growing markets through 2010.  

Mogul stalking is the way of the “Bizzerazzi” - journos covering the prestigious Allen & Co.  Sun Valley Media Summit. Below, a roll call on current attendees and missed attendees. The general lesson: difficult year to run a media co, potential need for further consolidation (a la Weinstein Co and potential Liberty Media investment) and spin-outs (a la Time Warner/AOL), Twitter-”It”-is yet need for paid online subscriptions for content, and much less access for journalists.

Who’s Who 2009 @ Sun Valley - Name (Company):

Lebron James (Cavaliers’ small forward), Warren Buffett (Berkshire Hathaway), Bill Gates (Microsoft), Sergey Brin, Larry Page + Eric Schmidt (Google), Rupert + James and Lachlan Murdoch (News Corp.), Bob Iger (Disney), Sir Howard Stringer (Sony), Jeffrey Immelt (GE), Leslie Moonves + Quincy Smith (CBS), Owen Van Natta (MySpace), Mark Zuckerberg (Facebook), Chase Carey (Fox), John Malone + Greg Maffei (Liberty), Rob Wiesenthal (Sony), Evan Williams (Twitter, “Sun Valley It-Boy”), Tom Freston (Firefly3; advising OWN/Oprah net), Reid Hoffman (LinkedIn), Rich Rosenblatt (Demand Media), Peter Chernin (former News Corp.), Steve Burke (Comcast), Brad Grey (Paramount), Jean-Bernard Levy (Vivendi), Bobby Kotick (Activision), Hank Vigil (Microsoft), Barry Diller (IAC), Marc Andreessen + Gina Bianchini (Ning, Andreessen Horowitz $300M fund).  More after the jump…

UPDATED: Ryan Seacrest just received $15 million in 3 year contract with CKX, parent of 19 Entertainment/”Idol” Producer. (7/13/09) It’s not a bad time to be the “bad boy” of American Idol, or better the “British invasion of blunt taste,” i.e., Simon Cowell. With a recession-proof request to re-up at Idol - from Cowell’s current $36 million per year (we’re assuming little if any individual merchandising tied to the show) to $144 million a year, and a newco deal with Sir Philip Green, a UK retail magnate, in Greenwell Entertainment, Cowell seems poised to take advantage of a struggling tv, talent and reality marketplace. Similar to what the falling fallen music business is doing, media studios are presumably locking in 360-degree deals with their talent, whereby the economics become all-inclusive and hedged beyond a single property.

Per Silicon Alley Insider, by way of the New York Post:

While $36 million may seem like a lot of money for five months worth of snarky comments and eye-rolls, it’s only a fraction of the estimated $900 million that “Idol” rakes in a year. As the lynchpin of the show — without him there would be no one to hate and no dramatic tension with Paula Abdul — Cowell believes he’s due for a raise.

Credit goes to Simon and Sir Philip for seeing an opportunity. Cowell brings contrast to Idol - among other spectacles - and really shines a light on the US celeb fascination. While everyone else fawns, he weaves in hyper criticism to the aspiring young singers (and Abdul and Seacrest).

Leave it up to the NYT’s to create somewhat of a sensationalistic forum on the agency aftermath of the William Morris + Endeavor merger takeover. Under the headline “Mogul Ascends With Old Hollywood Clout,” the Times serves up little more than innuendo around golf games with outside investors, anonymous Hollywood insiders fearing both Ari and Rahm Emanuels, and finally, musical chairs or board seats with Ari on the Live Nation board. From Silicon Alley Insider - our preferred business read although they ditched their Entertainment blog “The Biz” somewhat quietly - made mention of the Ari Gold Ascendency of Emanuel, but both articles seem to only paint Ari as a hard ball player on the rise with a brother in the Obama Chief of Staff hot seat. One wonders how that fraternal conflict of interest can be of any use to either brother outside of easy sleepovers at the White House.  

In the spirit of covering topics that my readers are interested in, today’s blog topic comes from a good friend and former colleague of mine (Ed) who wrote to me recently asking if I could write a “how-to” article of sorts about how to navigate the angel investor waters. In these challenging economic times, coupled with the complex landscape found in the venture and private equity worlds, angel investors occupy a very worthwhile niche within the start-up ecosystem. They offer a combination of funding (at lower amounts) and hands-on assistance that the majority of bigger money shops can’t or don’t offer - although as we’ve read recently a handful of them are starting to set up “seed bet” funds.  

Reflecting on how mobile media has come to encompass “social media” - especially with Twitter leading the charge - below, please find a few helpful tools and tricks to support your Twitter addiction:

Twitter Tools:

• Seesmic Desktop (Adobe Air client for fast multi-account tweet management and search)
• TweetDeck (alternative to the above)
• Tweetie (the best iPhone client)
• MrTweet (search submission tool to help get followers)
• @geofollow (keyword submission tool)
• Twitpic (for better photo tweeting)
• Twitterholic (follower rankings and stats)
• Last, click here for an exhaustive list of 3rd party twitter apps…  
  

Associated Press recently listed its highest-paid CEOs for 2008 list with only one media appointment: Bob Iger of The Walt Disney Company in 3rd place with $51.1 million.  With the majority of the top 10 being finance and industrial-based, it’s interesting to see that media/content still has a hold on the environment. With ESPN’s continued growth, Pixar integration, Disney’s recent partnership with NBC/Fox’s Hulu, teen-star “Hannah Montana” and “High School Musical” talent factories, the start of DisneyNature and relatively strong film and tv revenues, not to mention the ongoing international expansion, Disney is running a very diversified content business in a market favoring global tech-based scalability. Alongside a News Corp/20th Century Fox model that slants toward print, news and politics, Disney has maintained a clean global brand while expanding in tech. And, although it’s a big compensation foothold in Iger’s case, it speaks to the power of entertainment and its role in innovating the US. If one of our bigger exports is entertainment, shouldn’t those who drive branded expansion be rewarded? After the jump, a breakdown of the other CEO list-makers and the New Medici “3Ways” to continue innovation…  

The business of Gold Farming - where paid gamers amass gold to sell to less-experienced users to game the MMOGs (Massively Multiplayer Online Games like WOW (”World of Warcraft”) is a well known practice. In a parallel world of connections, perhaps equivalent to “gold” in terms of business leads or viral marketing armies to launch brands, one could imagine a new kind of innovative farming for profit around social media relationships. Think “Twitter sweatshops,” “Facebook factories,” “Diggsourcing” and “LinkedIn (Assembly) Lines.” After the jump, a metaphorical goldmine…

The mega-agency merger is made: William Morris Endeavor (WME) Entertainment is the combined talent agency merging film, television, music and book publishing between WMA and Endeavor. Architected on one side by Ari Emanuel, who left ICM (under Wiatt) nearly 15 years ago, and his senior partners - Patrick Whitesell (former CAA), Adam Venit and Rick Rosen (the fourth, or fifth, principal was Tom Strickler, who resigned presumably because he was anti-merger); and, by Jim Wiatt and Dave Wirtschafter from the WMA, now Chairman and Co-CEO, respectively, with Emanuel and Whitesell. A breakdown of the deal math, what it means, and where they go next in relation to CAA.

The Agency/Deal Math:

With Endeavor’s 80-100 agents (about 280 total employees, per LAT) and WMA’s 150 agents (800 employees), Nikki Finke at Deadline Hollywood Daily’s (DHD) blog, which expertly followed the merger, predicts 100 or so layoffs over the next few weeks.

Add to that the requisite agencies’ assimilation issues - agents/agency poaching and conflicts, agents-turned-managers, change of client marketshare - comes the understanding that while this merger helps both companies survive the current economic storm and a changing entertainment environment (lower DVD revs and TV budgets, less upfront/more backend for theatrical).

With combined revenues of $300-325M - research points to a 2:1 split between WMA:Endeavor - the goal will be to challenge the dominant CAA, while maintaining course with current clients.

And with the new classification as WME “Entertainment” (as opposed to “Agency” or better “Media”), one wonders if they will stretch the model as has been seen with the Endeavor-MRC relationship.

The toss-up will be how the two sides intermingle and work together to produce coherent results for their shared clients. Early on, Emanuel said, “We need a bigger boat,” given the merger exploration process which took an emotional toll on both sides, not to mention their clients.

Per Nikki Finke’s DHD:

Both sides now realize that any newly merged company has to consist of only 150 core movie/tv agents at most. The mantra of these negotiations is “make it smaller”. That means, of WMA’s 150 agents, and Endeavor’s 100 agents, about 100 from the combined total will have to be let go. And since CAA’s Richard Lovett has pursued a policy of 100% marketshare when it comes to clients, the new WMA-Endeavor is making as its goal to rep only the elite Top 2%.

After the jump, more on the new agency makeup, the financial value of the enterprise, and the new-and-improved mega-talent agency skirmishes and wars to follow…

Fox Chief Digital Officer Jon Miller is a busy recruiter these days. After bringing in Owen Van Natta as new CEO, Michael Jones (formerly of Userplane which sold to Miller’s AOL, and recently Tsavo Agency) and Jason Hirschhorn (formerly President of Sling Media and CDO of MTV Networks) as COO and CPO (Chief Product Officer), respectively. Think “AOL + MTV [x Facebook] = New MySpace.” After the jump,  insight into where this troika takes MySpace to innovate the social network/portal.  

MySpace’s “loss of face” to Facebook, a rough and tumble economy and a pivotal change of company seats, i.e., Peter Chernin, at News Corp (and MySpace’s own COO and senior technical team’s exodus) has contributed to a major executive facelift of MySpace. While their track record of change with Jeff Berman as President of Sales and Marketing and pitch towards being framed as a “social portal” has helped, the inability to keep up with Facebook’s growth rate and product innovation has forced change at MySpace. With the forthcoming announcement (today) by new CDO Jon Miller of former Facebook COO, Owen Van Natta, to the CEO spot, Fox and Murdoch are betting on social competitiveness to regain position. After the jump, we’ll look at Van Natta, and outside choice, Jason Calacanis’ recommendations.  

Chalk this up to a little next generation (i.e., teens) or the international community who travel often, but it seems everyone under 20 and those abroad from Australia/UK/New Zealand/etc. are dropping their iPhones in favor of iPod Touches. Now with Skype and a good wi-fi connection, there’s no cost calling plans. How’s that for innovating your office, kids’ utility fees or travel abroad access…?  

With one late-night manifesto, fictional sports agent - Jerry Maguire, played spot-on by Tom Cruise - removed himself from corporate contention and revolutionized his life and career. How many of us today can say the same without nervously eyeing our 401K’s or reviewing our latest Chase credit statements? It’s not easy to “Show. Me. The. Money.” as Rod Tidwell (Maguire’s lone client, aka Cuba Gooding Jr.) demanded Jerry repeat, when the money is the check - as paychecks so often arrive “paycheck to paycheck.” This post is the preamble to the “Anti-Studio: Future of the Mega-Agency” article that we’re all writing at New Medici. You have to ask yourself, given the recession: are you doing what you love? And is your business - whether executive or entrepreneurial - a long-time affair? Is this recession a crisis point or a moment to celebrate that we can innovate our way back to greatness? An overly long excerpt from Jerry Maguire’s “The Things We Think And Do Not Say” manifesto after the jump…  

Sasha Baron Cohen’s Brüno - the Universal and Media Rights Capital (MRC) film - promises to push the boundaries of taste in a very cash-positive way when it opens on July 10th. Below, the “Red Band” restricted trailer - MySpace video is on-and-off, so via TrailerAddict:

After the jump, a comparison of Brüno v. Borat with 14 Brüno aggregated clips to boot…  

A year of steady losses. Of the 793 billionaires on Forbes’ 2009 Billionaire List, 656 lost money while 44 surprisingly added multi-millions in the downturn. Bill Gates returned to the top position ($40B net worth, down $18B) with Warren Buffett ($37B, down $25B) and Carlos Slim ($35B, down $25B) changing the first three seats. From a list of 1,125 billionaires recently, and $1.4T (that’s “trillion“) lost, we’ll look at a few of the past year’s success stories - and offer discussion and links to how those few overperformed.  

No mutiny here actually, but we like the pun - today, MySpace’s COO and SVPs of Engineering + Product Strategy jumped off the boat. Noted as a “rising star,” 27-year-old Amit Kapur (MySpace’s COO) is leaving for a start-up after 13 months at the social network portal. In charge of global ops, it’s a fresh turn for Kapur; and a dynamic story of an acquired start-up supporting player turning into a new, untethered, start-up featured role. Think Googler turned Xoogler metaphor.  

We wouldn’t have predicted such a move with the succession plans of most studio heads being ‘muddled’ at best, but Rupert Murdoch (Innovator/Benefactor) has made a industry-loud judgment call. Based on Murdoch’s legacy plan for his son, James Murdoch, to take over from Chernin, News Corp. President & COO, this leaves Chernin with a 6-year production deal, $40M in severance and a number of other high-flying amenities. So, who wins? Chernin or Murdoch? More after the jump…