Archive for the ‘Uncategorized’ category

Is Spotify Going To End Up As Netflix?

November 18th, 2011

A couple of weeks ago I wrote the following blog post which I forgot to actually publish. Today I woke up to an article in Wired stating that more than 200 small music labels have taken their music out of Spotify and Rdio. It reminded me of this post, so here it is, late but never more relevant:

I’m a big fan of music subscription services. While they became all the rage in the US just recently, Iv’e been using a few of them for years now.
But this week I got a few big disappointments.  A few of my favorite artists came out with new albums and to my surprise I couldn’t find them in any of the services including Spotify and Rdio. The artists I’m talking about are Coldplay, Kaskade and Florence + The Machine.
Now, it’s true that it might be just a coincidence and I hope it is. Because the other option might suggest a change that will make services like Spotify end up like Netflix – The “Rewind” service for music.

But if Spotify is growing like crazy, why we even talk about such an option?
Because under this growth, there are still some big problems and questions that the streaming services and the music industry as a all need to solve. Some examples are:
If you are not a very big name artist, you are simply not going to make money from people playing your music with these services. And if you are a big name like Coldplay, you can actually decide to put your new album on iTunes only for a few months, get the big money there, and than push it to streaming and hope to get some more.
And what if you are a small band? Well, the big point that the streaming services are fighting for is that they allow for people to discover your music. That people won’t buy your albums, but if they can listen to them for free they might discover you and you will make money on touring. The problem with this is the statistics behind the service. For example, on Spotify, more than 90% of the songs played are the same 10% of songs mostly coming from big artists (Worth to note that this is the exact opposite from the stats behind Pandora).
Now, this might change a bit now that Spotify is integrated with the new Facebook Open Graph which allows for better music discovery, but we will need to wait and see.

So will we see more artists and labels take their music off the platform or will subscription will become the main way we consume music int he future? Tell me what you think.

The Man Who Changed My Life

October 6th, 2011
As very young kid I wanted to be a film director. But as the years went through and sometime around age 13 my fascination from technology and computers took over and I knew that this is what I’m going to do. It took another couple of years before i also knew what I want to do with technology. There were three people that pushed me there: Andrew Grove, Bill Gates and Steve Jobs.
I remember reading articles and interviews with them and more than thinking, knowing, that this is what I will do. It wasn’t just about success and fame. It was about the change. About changing the world. The ability to imagine and build products that millions of people touch and use every day fascinated me all together. It still is.
This was the first time that Jobs, without knowing, touched and changed my life. At first I was a total Microsoft geek. Back than it was already not cool to like Microsoft but I was fascinated by  the user interface behind many of their products. But as the years kept passing, I started to gravitated toward the Apple camp. When Steve Jobs returned to Apple he didn’t bring with him just a new spirit. He took Apple, than a broken company, and made it the most innovative company in the world. He brought his vision and dedication for user experience that captivated me and inspired me every day.
Today I’m writing this post on a Macbook Pro. In front of me on the table sitting an iPhone, an iPod touch and an iPad 2. I probably own another half a dozen other Apple products. It’s fair to say that I spend more time with Apple products than with any of my friends and family. The  way I’m consuming media, do my work, talk with friends and basically live goes through this or another Apple product.
This is the second way Steve Jobs touched and changed my life.When I’ll finish this post I’ll go back to my work on my new startup. It is a full mobile startup and I spend most of my time today writing and developing an application for the iPhone. It’s fair to say that without what the iPhone brought to the world and the way it changed the mobile industry, I wouldn’t do what I do now. My startup won’t exist.
But this goes much deeper than that. I won’t exaggerate if I’ll say that at least every three days I find myself debugging some feature in the middle of the night. I’m tired. I’m hungry. I just want to go to sleep. At these times it’s easy to just say “It’s ok if the icon doesn’t look that good”. Or, “It’s ok if this feature won’t be perfect”. But almost every time it happens I stop and think of Apple and say to myself: “What would Steve Jobs say?”. And the answer is obvious. He will ask for that perfection. He will give that extra hour and make sure the user experience is just right. And so that’s what I do. Because we all want to build a product that will be looked at and treated by the same way we all look at the iPhone or the iPad the first time we hold them.
This is the third way that Steve Jobs touched and changed my life.

I never met Steve Jobs and I never will. But even without ever meeting him, with his work, his vision and his spirit he touched and changed my life again and again. The world just seems a bit less magical today. 

It’s Not About Measurability. It’s About Predictability

September 30th, 2011

I spent the last few days in a really cool event named SHIFT which was produced by Social People. Many of the conversations there reminded me of one of the big lessons we learned running NuConomy.

Coming from the creative and digital sides, many startups that try to work with the agencies, can’t understand why they can’t convince them to use their products. For us it’s hard to understand why these agencies spend millions of their customers money on TV and other platforms instead of do highly targeted and measurable advertising on the web. What startups need to understand that it’s not about measurability – It’s about predictability.

These agencies have worked and ran campaigns on radio, newspapers and TV for tens of years. They have seen everything and than again. They know exactly what will happen when they put a million dollars on a prime time TV campaign. They don’t need it to be fully measurable as the web. They have done the same thing so many times before, that statistically they can predict the exact results. At the same time, we the startups, offer them superior solutions. But these are also solutions that no one have tried before. Solutions that were tested just a few times. For us a couple of years seems like a long time, but these companies were doing business for tens of years.
What startups needs to understand is that in the end of the day it’s about people lives and careers.  Predictability is also security. It’s knowing that your job will probably won’t be in risk.
What we need to offer agencies is not more data points to measure, but a way to have the comfort and security of predictable results.

Distributed Entreprenurship

August 31st, 2011

I spent the last couple of nights filtering some of the new entries to the Startup Chile program.
Many of these entries are of teams coming from countries such as Brazil, Germany, Slovakia and others around the world. What I found fascinating is how different these startups are from the ones I mostly meet in the US.

The first obvious difference is in the target market. While most American startups are trying to first go after the US market and than rule the world, many of these companies are targeting their own local markets. It might be obvious, as these are the markets that they are more familiar with, but personally I’m not used to see that. Originally coming from Israel, I’m used to see entrepreneurs who always thinks first on the US market. The main reason – It’s the biggest one. It’s the one with all the glory.

This decision, going after the local markets seems to also have big effect on the products themselves. While a lot of the US companies are trying to innovate on features and technology, developing brand new experiences, many of the international companies are trying to create local versions of products that are already successful in the US. I see much less technology innovation than companies which try to answer specific business needs that the local market still struggle with.
Most of them will probably won’t become the next 500 million dollar company simply because their target markets are not big enough, but many of them might be able to pull a 10 – 20 million dollars company which might be acquired but the big guys when they decide to attack these markets. These companies represent some great opportunities for the new kind of seed investors who want to invest small amounts of money in many small, agile teams who can solve a pain point and execute quickly.

That said, I would like to see more entrepreneurs around the world trying to go after the American market. We all want and need to see the next Skype coming up. The talent is there. Now all they need is to dream bigger.

The Power Of real Life Data

July 3rd, 2011

I’m a long time Foursquare user. I love the service and I tend to check in multiple times a day. So far I’ve been using it in order to update my location and see where my friends are. For discover of new place I always use Yelp, another one of my favorite services. But in recent days this has changed. After neglecting to do so for some time, I decided to give the “explore” option of Foursquare another try. When doing so I suddenly noticed one killer feature that foursquare beats Yelp in – The power of real life data.

When you look at a place in foursquare, you also shown a message similar to: “People who went to xxx tend to also go to yyy, zzz…”. This data is better than any review or rating you can ever read. It tells me that people who tend to go to some of my favorite places also go to this place. This is the highest possible recommendation you can get. Even better, it also shows me which of my friends tend to go there.

True, a year ago Yelp went into the checkins game as well, but my guess is that foursquare boost a much bigger set of real life data that they can now harvest to create compelling features like that.

The Big Music Business Opportunity

April 28th, 2011

As many of you already know, I’m working now on my next venture. And as some of you know, this one is going to take a deep dive into the music industry.
What? Music? Am I serious?
Yes. Like you, I also read the hundreds of blog post and articles that details why trying to do anything with this industry is a suicide. I also saw the presentation of Dalton Caldwell (Imeem founder) warning everyone to stay away from music like from fire.
So why do I decided to do just the opposite? Put aside the fact that music is simply one of my biggest passions, I also believe that  these exact difficulties that everyone are talking about are also the core of a huge opportunity. Let me try to explain:

First, let’s start with the obvious. The Music industry is a multi billion dollars industry that is shrinking every year. But what’s important to note is that it is shrinking not because the product (the music) is less loved, but because the business around it is rapidly changing. This in itself is a sign of a great opportunity. Any changing industry is an industry ripe for innovation. People are passionate about music now more than ever. People are actually extremely passionate about music. And anything that people are passionate about is something that they are willing to pay for. You just need to find the right way to let them do so.
Just look at how Netflix changed the movie streaming industry. For years everyone talked about the end of the film industry as everyone are just pirating movies and suddenly the all picture looks different. Netflix managed to build a product that is simply good enough to convince everyone to pay for it. Their growth was so big that now everyone from Amazon to Google is going after them, trying to replicate their model.

The second reason I think there is a huge opportunity in music is the industry structure itself. Like many other industries, much of the way the music business is handled  is still rooted in the way business was done years ago. I just finished reading Donald Passman book “All You Need To Know About The Music Business”. In it, Donald breaks down a guide for the new artists on how the business works and how an artist should build his contracts, career, etc. A couple of things really amazed me:
- How complex the all thing is. You need to be a MBA graduate to understand how much money you need to get paid. I really have no idea how a young artist suppose to control his career and destiny.
- How little does the artists actually getting paid. If you are not a real star you are not going to see any money and most likely you will actually lose some.

As an entrepreneur coming from the outside all of this is actually exciting. Old complex industry that still stuck in the dark ages with much bureaucracy and many players between the consumer and the product. And all of that around a multi billion, international market? Are you kidding me? It’s the dream for every tech entrepreneur.

Now don’t get me wrong. I’m not naive. Every major disruption for such a big industry is going to get tons of push back. It’s not just that people don’t like change. With such a big change, there will be many people who might lose their jobs or need to fight for their place in the new world. Trying to shift an all industry can probably be painful like a root canal. It’s also not a quick and easy exit. It’s a process. A long one. But in its end lies a really big opportunity and a chance to really change the world.

 

Code While On Tour With Rock Bands – We Are Hiring

April 21st, 2011

Ever wanted to code while on tour with rock bands?
Think that coding on a Caribbean beach or in the middle of a jungle is cool?
Or maybe you just want to work in a dynamic, highly talented environment?
want to work hard and play even harder?

If you are a killer Ruby, PHP, Python or mobile (iOS or Android) developer – we want you!
An upcoming startup with strong roots into the music, media and entertainment industries is now hiring the core team. Come and help us change the world!

Contact me here or at shahar at deathstarlabs dot com.

 

Also – iPad, drinks and a big kiss for anyone who refer us great candidates.

 

The Power of WOW

March 3rd, 2011

In his book “Delivering Happiness” Tony Hsieh is talking about how delivering a WOW experience to their customers and partners is part of the core values of Zappos. A good example is the fre upgrade to one day shipping they are giving to many of their customers.

A WOW experience doesn’t have to be something expensive and big. All it needs to be is something unexpected. Something that will surprise your customer and wow him.
Yesterday I had my own wow moment that triggered this post.

In the past few days I was staying in the Monteray Plaza Hotel in Monteray. After I got in I tweeted about it and talked about how nice the hotel is. Yesterday evening I went back to my room and was surprised to find a big cheese and fruits plate waiting for me. Near it was a small note saying:

“Thanks for the tweet. Please keep spreading the word about Monterey Plaza Hotel”

This was the exact definition of a wow moment.
Although it was something small, it was also a totally surprising and made me smile. When I think back on the hotel, this is what I will remember. This kind of gestures are the things that build strong customer relationships. This kind of gestures are what makes people talk, tweet and spread the word about your brand.
Having a great and constant user experience is very important. But from time to time, do something different, that simply wow your customers is extremely important as well.

 

Building Your Dreams In Chile

February 19th, 2011
Many of you know that I spent the last three months in Chile as part of the pilot for the new Startup Chile program.
Startup Chile just decided to open their gates to another whopping 100 startups. As such, I thought this will be a good time to post my reflections on the program and try to explain why this program might be good (or not) for your own startup.
You can read all the details on their site, but the short form is that if you get accepted to the program, Chile is giving you $40K to invest in your startup. In return they don’t ask for any equity, board seats or other say in how you will run your business. All you need to do is spend six months in Chile.
My personal experience in Chile was great. Santiago is one of the more modern, clean and safe cities in the world. The quality of life your money buys there is much higher than in the US. For example; I pay third of what I paid in San Fran for rent and I get a fully furnished one bedroom (including plasma TV, speakers, Jacuzzi, etc) on the 19th floor with view to the Andes. We have a big roof top pool, small gym, pool table and other amenities in the building itself. There is no way I could have afforded something like that back in the US. bootstrapping in Chile is definitely not as bootstrapping back home…
But even better are the people and the social life around us. The pilot program had about 20 companies. We all got there from different places around the world and for almost all of us it was the first time in Chile. As such, similar to the college experience, you get to make many new friends. We hang out together out side of office hours, go out drinking, dancing, etc. It’s been a really great and fun 3 months.
But this was my personal experience. Let me try to take the more objective side and answer some of the questions, concerns and thoughts I had before deciding to come to Chile:
  • Living in Santiago - I travelled to most of the capitals of Central America. As such I was totally surprised from Chile. Santiago feels like any other European or American capital more than other cities in the region. It’s very modern, include a great metro system, offer great 3G and WIFI access everywhere and you will find here all the American brands you might want. It’s one of the easiest cities to get used to and start your new life in.
  • Freedom to work and travel - The program itself gives you all the freedom you want to work as you want on your startup. You are expected to spend as much time as possible in Chile, but if your business require you to be somewhere else, it’s fine. Their main concern is that your business will grow.
  • The Language barrier – I came to Chile not knowing to speak any Spanish at all. It would definitely be easier and more fun to know to speak fluent Spanish, but after a few days you manage to get by with everything you need. Not knowing Spanish should not stop you from going there (or anywhere else around the world).
  • Experience a new place - At one point your startup will have many customers, you will have employees, board of directors, etc. When you get there your flexibility to travel and live as you want is getting smaller and smaller. Startup Chile gives you a great opportunity to see new amazing places in the world while you can still do that. We have been taking weekend trips to Argentina, Patagonia and other breathtaking places in the region. I believe this is especially important for many Americans who tend to travel less. Living and travelling in places outside of the US give you a new perspective on life, the world and also on business.
  • Business Opportunities - Chile itself is a small country, but South America in all is a huge untapped market. Most of the startups in the US don’t really look at this fast growing market. Chile can be a great place to head out form and try to tap big markets like Brazil and Argentina.
  • Distance from the US - Not everything is just good. As someone who lived in San Francisco the last few years, I do feel the distance. Although it’s growing, Chile still doesn’t have a vibrant developers and entrepreneurs community. You won’t find here the same level of networking and connections you get in the bay area. That said, this is probably true to almost any place around the world. The bay area is still the Mecca for startups and nothing can replace it.
  • Developers - I haven’t tried to hire anyone in the bay area for a long time, but from what I hear the market is brutal right now. Chile and other places around like Buenos Aires offer a lot of developers talent. It will be much easier to find your developers here than in the US. That said, like anywhere around the world, the best also cost more. To find the right combination of talent and much cheaper labor, you will still need to ork hard.
So who this program is good for?
If you are an early stage startup who still have a few months of development in front of you, this program is perfect for you. You get the money, get to explore the world, access to untapped pool of talent and basically have a once in a life time experience.
If you already have an establish product and looking more on how to push your marketing efforts (and you are not looking at the South American market) you should probably stay close to your target audience.
I think Chile is a very interesting place to explore for a long term R&D center (especially now when it’s almost impossible to hire in the bay area), but when you already have your product out, you personally will probably need to head back to the US and live close to your main market.
If you have more questions or comments, please feel free to contact me directly.
Xmas Dinner with Startup Chile

Santiago, Chile

Rafting with Startup Chile

Rooftop asado with some of the Startup Chile participants

Kikaros – The Community Curated Search Engine Experiment

February 14th, 2011

I wanted to introduce to you a new experiment product I call Kikaros. Kikaros is a community curated search engine. What does it mean? Well… let’s start from the beginning:

I woke up yesterday morning reading Michael Arrington complaints about the quality of results produced by Google.
This is a topic that dear to my heart. It’s been a couple of years that I feel the same. I find myself more and more frustrated by the quality of the search results I get, clicking to much on the 2nd and 3rd page links.
I think we can all agree that the problem is not with the indexing technology. Google is doing a great job there and to be honest Bing and probably even Yahoo are doing a good enough job.

The problem lies with the filtering of the results and the fight against SEO spam.

In a world where your position on the search results can determine the outcome of your business, there are simply to many companies who spends millions of dollars on SEO tricks that will put them on the first results page. It’s even worse when you go outside of the US. In Chile for example, almost every search for a restaurant name brings the local Groupon as the number one result. And of course 99% of the time, there is no connection between Groupon and the restaurant.

So what we actually need is not a better search technology but a way to simply filter the spam and low quality sites out of the results set.
With this thought in mind I sat down to develop a new experiment. A few hours later Kikaros came to life.

You can think of Kikaros as kind of hacker news for search.
Hacker news is a curated feed of great hackers related content from across the web . The community maintains the feed and suggest new content.
Kikaros follows the same principle. It allow the community to submit the best sites that should be used to look for search results for different categories. For example, if you do a search under the code category, you will get results just from the best coding sites voted by the community.

Kikaros is not a full replacement for a search engine. The goal is to see if it can replace 80% of our search needs.
Kikaros is also not a new search indexing technology. It actually uses Google as the underlying search engine. 

Can such an experiment actually work?
I have no idea. This is why this is an experiment. And this is why I would love your help. Please take a moment to go to http://kikaros.com and submit some of your favorite sites.

Please note that this is a very early work and the outcome of just a few hours of hacking. There are many things that can be improved and if you want to help also there, please contact me directly.