Tretakoff Musings
Sunday, January 18, 2009
  Receipts: The Latest Victory of the Digital Age
Great news from a new company, Transaction Tree, who claim they've developed a POS-based solution that allows any retailer's POS system to allow the customer to choose to receive their receipt via email instead of printed paper. While the Apple Store has been doing this for quite some time, they have the advantage of having a relatively modern POS (albeit one that runs on Windows CE, ironically). Most retailers have legacy POS systems, which are not known for their flexibility in this regard.

In this age of identity theft, these paper scraps of data are more like tempting morsels for identity thieves. Worse, standards are completely absent: some retailers print the last 4 digits of a credit card on your receipt; others print all but the last 4. A thief only has to take a gander at a mall trash can, and they have the equivalent of an all-expenses paid trip around the world. Emailing these receipts ends this risk, and focuses on what we really need: unlimited storage, indexable, at any time. Gmail offers almost just that with this approach.

The road is littered with false promises here, however, and this seems to have some suspicious earmarks of a less-than ready for primetime approach. For instance, head over to transactiontree.com, and note the lack of many specific details. Worse, there's a link for "consumers" to a promising "NoMoPaper.com," which links only to a link farm. Could be careless coding, could be poor design...or it could be worse. I'll say this: I've had occasion to work with hundreds of retailers and their POS systems. The one thing I can tell you is that almost none are standards-based, and each require massive customization. So, when I hear about a company that promises a solution that works with all POS systems, to interrupt the most basic function of receipt printing, I am hopeful...but skeptical.

I hope I am wrong...most sincerely.



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Saturday, January 17, 2009
  PETA: Now Even MORE Misguided
15 years ago, the Patagonia Toothfish was, to say the least, not much of a hot seller. Then, some ingenious marketers thought of renaming the fish with a name that would be more tempting to diners, and the Chilean Sea Bass was born, becoming so successful, the sales of it have to be now restricted to ensure we don't fish the species out of existence. A great example of marketing in the world of seafood, one that brought great prosperity and expanded palates.

Today, we have an absolutely opposite inanity, courtesy of the lunatics at the oh so benignly named People For The Ethical Treatment of Animals, or PETA. They have announced a PR campaign to rebrand fish as...sea kittens. Yes, these crazy folks, who would rather let humans die of starvation, malnutrition, and agony, believe that the latest "animals" to need their protection are fish. This is misguided in so many ways, it dazzles the mind.

These zealots are masters of the language war, having executed successful campaigns on fur, supermarkets...the list goes on. Their name is the real master stroke: their agenda is not to more humanely treat animals, but to prevent them from any human contact at all. But in this latest effort, they have erred: they have clearly seen the success of rebranding in the seafood world, and are trying to capitalize on it, but they have missed the point: it was only a success because commercial enterprises embraced it for their own self-interests. Who in their right mind is going to willingly label their product as "sea kittens?"

The insanity is clearly pervasive throughout these people who have clearly been so hurt by humanity to such a degree that they would rather transfer their compassion to a more accepting group. Frankly, I'm not a huge fan of animals, but I do see the love they inspire, but stacked against the heart-rending knowledge of children in a 3rd world country who will starve without needed food, or go malnourished...or even knowing that their asinine efforts in the US cause basics foods like eggs to skyrocket in price, impacting the poorest of our nation...well, I don't think it's even close.

These people are ill. Says Ashley Byrne, PETA's sea kitten campaign co-ordinator"Knowing that the fish sticks in the school cafeteria are really made out of tortured sea kittens makes most kids want to lose their lunch." Ashley, I have to ask: what actual institution that professes to educate children would ever use your bizarre talking points? And if neither they, nor the companies that produce these nutritional necessities for children, are considering anything to do with you, why in the world do you think this makes sense?

Look, PETA: if you want to take on folks who abuse puppies, or the disaster of not spaying cats so that they are forced to die from starvation, I'm actaully right there with you. But leave the human foodstuffs alone: we are an omnivorous species, and you have the right to be a vegetarian; I have the right to eat my fish. Now excuse me, I have a special Sea Kitten Roll waiting for me at the sushi bar.


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Monday, December 29, 2008
  The Big Tuna: The Drama Continues
The Bill Parcells soap opera continues this week, and not for the reasons you might expect. Sure, three coaches in the NFL have just been axed, and more are likely to follow, and normally when you hear about coaching opportunities, a huge shadow looms over each: Parcells (although the other Bill, Cowher, is starting to compete). The latest drama is on his success with the Miami Dolphins as the head of football operations. Turns out, his contract is unique in that if the owner sells the team, he can walk away, and be fully paid for his whole contract. So, the hand wringing begins: will he stay or won't he?

This is a guy who twice put his hall of fame election on hold by refusing to stay unretired and come out to restore respectability to a franchise, so who's to say he won't again? He's had the magic touch, both as a coach and an executive, for now five major NFL franchises. He brought the New York Giants two Superbowl rings. He brought the Patriots to a Superbowl. He brought the Jets to the AFC Championship. He restored a winning tradition in Dallas, and brought them back to the playoffs. And now, in Miami, he has completed a 1-season turnaround that is unheard of, going from worst team to the playoffs in a single season.

And yet, every one of those teams he brought success to lived with the drama of Parcells. He accepted the job with the Jets the day before he coached their arch-enemy,the Patriots, in the Superbowl...and let the media know. Think that was a distraction? He jilted the Buccaneers so many times in the 90's while with the Giants, they had to enlist in self-help programs. He flirted so blatantly with the Cowboys, it made reality TV look tame by comparison.

Y'know, I've actually accidentally become a Parcells observer. I attended Superbowl XXV, where Parcells won his Superbowl ring. I lived in New England in the early '90's, watching him take over the local Patriots and change them from a laughingstock to the building blocks of the dynasty they became. I watched him ressurect Vinny Testaverde with the Jets. And suffered horribly when he came to put his stamp on my beloved Cowboys. What he has accomplished in Miami, though, is truly amazing: taking over a historically bad team, hiring a first-time head coach (his line coach from the Cowboys), changing 2/3 of the team to "Parcells guys," and then just going and playing in one of the most competitive divisions in football (the Pats went 11-5, playing in the same division, and couldn't make the playoffs it was so tough), only to win it?

Most people eat crow in this situation. I may be heading for a Tuna sandwich.

So, saddle up and ride: we're in a for a long offseason of "what will he do?" Will Parcells grab the reigns of the legendary Silver and Black to finally return them to their commitment to excellence? Or will he stay in South Florida, to continue his ressurection? Or will he be the prodigal son, returning to the Big Apple to take over Gang Green?

Stay tuned...


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Wednesday, December 24, 2008
  L.L. Bean kicking to the curb?
Very sad news today that the venerable L.L. Bean cataloger and direct marketer is facing the troubled times with something of a scary approach: layoffs. This is a company that, to my knowledge, has never endured the contractions that so many retail chains have, and they've preserved that classic Yankee/Maine feeling of "toughing it out together."

I hope they find a third way, as I'd love to see them be a model for so many other companies in this, like they have in so many other ways.


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Monday, November 03, 2008
  Twin Titans of CE Have Fallen
Alas, the world of Consumer Electronics suffered yet more bad news this week. First, Circuit City surrendered to the inevitable in the first of what is sure to be a long series of death throes by closing 155 stores. This was long overdue, and is a direct response to the increasing dominance of Best Buy and Amazon. I'm amazed it took so long; I actually think they would be best served by closing these monster stores and go for the old Circuit City Express formats in suburban malls. As it is, the real estate costs will kill them in no time.

The second is more sinister, and sad: Tweeter Etc. was purchased by a liquidator. Why this is sinister: they told all the company employees last week that they were shutting the distribution center, and arranging to have all shipments sent directly to the stores, saving them $12 million. This was received with, to say it nicely, some skepticism. Sure enough, they made a backroom deal to liquidate the stores, and got out of town before the pitchforks could come out, or the torches lit. Sleazy.

Why this is sad: Tweeter was based in Canton, MA. I bought my first real stereo from them, a sexy, sleek 1980's black Mitsubishi all in one. It also started my lifelong love of the deal: the stereo sold for months as $1,099, but I was able to get a floor model for under $300. I had that stereo for over 20 years, and it never failed to impress me. It was so far ahead of its time, it made Bang & Olufsen look like dinosaurs. At the time, growing up in MA, you had only places like Service Merchandise or Lechmere to satisfy your CE jonesing; when Tweeter emerged, it was like the rules of CE retail completely changed: instead of harsh lights and horrible salespeople, you had a studio-like atmosphere, with relaxed enthusiasts to guide you through the hi-fi decision. Such a sad way for it all to end.

Looks like a sad CE Xmas ahead, but a good one for deal-finders and Best Buy stockholders.


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Wednesday, July 23, 2008
  Back To You meets Bad Influence
This can't be real life. In Philadelphia, we have a tale of two news anchors. You know, those folks that laugh and smile on newscasts, yet probably hate each other off camera? Never truer words were said, as the antics of these two simply defy imagination.

Some examples?You can't make this stuff up, folks. My favorite line of the whole story, though, was this: "Authorities found a picture of Lane in a bikini on Mendte's computer, though there are no charges connected to the image." No charges connected to the image. Oh, whew, guess they are both off the hook, right? ;-)

And you thought local TV news was boring!


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Thursday, June 05, 2008
  Back Inside
Good news today for NFL Films fans like me. Courtesy of the always-entertaining MJD, word comes that the venerable Inside The NFL that has aired on HBO almost since its inception, has risen from the dead. For those that were not aware, this past season was the last of the highlight show's long run, leaving Dan Marino, Bob Costas, Cris Carter, and Chris Collinsworth out of a job. Of course, they had those cushy Sunday morning gigs to fall back on, and Costas is practically his own brand by now, so not too many tears. But Showtime wisely recognized the built-in audience, and swept in to revive it.

No word yet if the staff is back, too, but one can hope that the NFL Films staff members that were laid off as a result of HBO's earlier decision will be back. How about it, Dan? Kick in a little of that salary?



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Wednesday, May 14, 2008
  Lost's Ideal Airport
For years now, I have wandered through San Francisco Airport's former International terminal with amazement. The building is deserted. Empty. Completely vacant. Yet it's location is directly between the massively busy United/American Terminal 3 and the hodgepodge of Terminal 1's Delta/US Air/Everyone else. That means that travel between the two inevitably requires walking through this cavernous maw of 1970's architecture, with only the sound of your footsteps and the squeaking of the wheels of your rollaboard to keep you company.

It's downright eerie, and strange, since every other terminal seems so overwhelmed with traffic and business. With it's central location, and easy gate locations, it's always strange that it lies there, dormant, in an otherwise modern busy airport. Heck, you even have to pass the Airport Police as you enter, as their station lives at the entrance. Nothing like armed police eyeing you suspiciously, wondering why you are willingly entering a deserted building, to make you feel welcomed and safe.

Looks like that's finally about to change. The San Francisco Chronicle reports that Terminal 2 is finally looking at a revamp and reopening, complete with a shiny new anchor tenant, Virgin America, in 2 years. It looks like seismic retrofitting was the reason for much of the abandonment; nice to hear it now. My favorite, though, was this gem of a quote:
"...there will be an effort to make the terminal "as environmentally friendly as possible," to include not having aircraft use engines or auxiliary power units at the gate, so they can save fuel. Vendors will be required to obtain green business certificates from San Mateo County, and there will be preferential parking for hybrid cars."

Check out the obligatory attempt to try to get in with the green folks by talking about hybrids. Um, in case you haven't noticed, since about September 12th, 2001, parking at a terminal in any major airport is a big Homeland Security no-no. So, the "preferential parking" will be...where? The garage? You know, the same garage that services Terminals 1 & 3? Um...why is that a selling feature here?

Let's see if Virgin America can stop these statements from being too ridiculous and focus on building a terminal that will rival JetBlue's new Terminal 5 at JFK instead. Now that's the way to welcome old T2 back!



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Friday, April 04, 2008
  Yer All Wet
We may, as a society, disagree with many things, but there has been one truth we all seem to instinctively agree on: drinking lots of water is good for your health. However, as with all good maxims, it's occasionally important to test them for reality. And, according to the Journal of the American Society of Nephrology, this wives' tale is all wet.

Turns out, drinking more water not only does not improve skin tone or reduce appetite, but actually can even be harmful, possibly causing kidney damage. The irony of this to me is not that yet another accepted truism has fallen by the wayside, but more that this was forecast by the most unlikely of prognosticators, Lewis Black. He of the waggling finger, and apoplectic screaming fits, the man predicted this very thing years ago in his HBO Broadway special, Black on Broadway, as well as a hilarious and wry look at the history of this admonition, as well as it's possible origin.

Take 10 minutes, sit back and prepare to laugh.






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Thursday, January 31, 2008
  Audible: Louder Than Ever
One of my old favorite companies, Audible, has entered into an agreement with Amazon to be acquired for $300 million. While this represents a slight decline in their perceived value from their all time stock high, it assures the future for this pioneer.

I own dozens of Audible books. Not familiar with Audible? Think "books on tape," but digital. Years ago, before MP3's really took off and long before the advent of podcasts, Audible led the way by digitizing thousands of books, and offering them for download. For folks who had long commutes, this was a dream come true. Better, Audible also offered discounted players; my first MP3 player was a Nomad, thanks to Audible. Their file formats were not quite MP3's, but were much smaller; before the iPod, we actually considered file size! They went on to introduce dozens of innovations, including a subscription service (2 books a month for $20!), and multiple file formats, so you could choose audio quality over file size, and more.

They really hit the motherlode with three major advents:

- First, they recognized the demographic of their customer probably overlapped with NPR listeners, and capitalized by offering subscriptions to popular NPR programs, such as Car Talk and Fresh Air. This enabled Audible listeners to, in essence, time shift their NPR listening. Until mid last year, this was the only option for listening to Car Talk, other than real-time. VERY smart.

- Second, they baked themselves into the iPod from day 1. How they got Steve to sign off on that, I have no idea, but it ensured their content was compatible with the most popular MP3 player ever. Even today, it's baked into every single iPod model. That meant they attracted new subscribers with every iPod purchase.

- Finally, they did an amazing deal with Amazon to be the exclusive audiobook provider. Looking at those bestsellers? Wait, an audio version, and I can get it right now? Sign me up! The fruits of this last deal were clear to both parties, and easily led to today's deal.

This is practically a case study for effective business development, and looks to be a win for both parties, as Amazon wants to strengthen their transition to digital media, and Audible is under increasing pressure for earlobes with the podcast revolution, XM/Sirius, and HD Radio.

So what's next? Well, the Audible acquisition nets Amazon a nice native port to the iPod. Potentially, Amazon could expand their media through that pipe, but Sir Steve is sure to crack down if they do. More likely, Amazon will leverage their recent Kindle success with publishers to encourage more content than ever to be available; listen on your Kindle or iPod. I also expect Amazon to tout the lesser known gems of Audible's content library: a daily recap of the NY Times and Wall Street Journal; live performances and lectures, and more.

My applause is Audible.

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Friday, December 07, 2007
  RT: the re-emergence continues
The media spin on the re-emergence of Richard Thalheimer continues. First, a cover story in San Francisco Weekly. Now, the LA Times spins the tale of the fascinating mercurial man and his rise, fall, and (he hopes) rise again.

As I have said before here: don't count RT out. These articles aren't random, after all: it's clear he's positioning for a classic comeback story. And with the way The Sharper Image is heading these days...who knows how the story might end?

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Tuesday, September 11, 2007
  The End of Dependence on Fossil Fuel?
I don't know how much longer John Kanzius has left to live; he's clearly been the object of more than a few contracts on his life from Big Oil, as he has unveiled the tunning discovery that he's found a way to make seawater burn as a fuel. I know, seems impossible, but he actually has stumbled onto a way that releases and ignites the hydrogen from the most plentiful substance on earth. Not just a weak flame, this sucker burns at a test tube melting 3000 degrees.

John, happy to start the PayPal fund for your Kevlar vest...or maybe you can just invent a force field, while you're at it? :-)

Watch this amazing discovery in action:

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Wednesday, September 05, 2007
  A Tale Of Two Companies And Loyalty
Publishing this in both of my blogs.

Two very interesting things this week happened that illustrated how two consumer electronics companies view being loyal to their customers...with surprising differences.

The first is Palm. Now, I'll preface this by saying I have been a very loyal Palm user for many years. I was entranced by the Palm III, years ago, and I have stuck with it: A Palm V, a Palm Vx, Handspring Visor, Handspring Visor Prism, VisorPhone, Tungsten T, Palm TX, and now my Treo 680. Through them all, I have always marveled at Palm's singleminded focus on usability and features: I have looked at alternatives every time, and settled on Palm's offering. Yet there's no denying that Palm has clearly lost any shred of a leadership position: the Danger devices, the ever improving (but still painful) Windows Mobile, and now the iPhone have all eclipsed Palm's innovation. Heck, even the new Blackberrys are getting in on the act.

Palm's answer? The Foleo, which was a device in search of a need. Basically a stripped down laptop with some interesting sync capabilities, was recently announced with near universal derision. This was Palm's big attempt to become relevant again? Releasing an overpriced, underpowered laptop that gave you all of the overhead you hoped to leave behind with your Treo, and none of the benefits (no movies on the Foleo; GREAT for those cross-country flights)? This was a major disappointment.

Now, take for a second the contrast with Apple, the second company in my discussion here. Everyone knows the story: after being beaten down to inches of their life, and having to take a bailout from Microsoft just to survive, visionary Steve Jobs proceeded to start to take bold risks with devices that filled needs for the customer base. It started with the iMac: an all-in-one computer that showed style, class, and affordability. But the really big hit came with the iPod; sure, there had been MP3 players on the market for years, but nothing like this. Easy to use, powerful, and paired with a real application to manage your media, the iPod became ubiquitous. In a short amount of time, every other company combined could not compete with Apple's iPod sales.

They continued to listen to their customers, and innovate with devices they wanted. Watch movies on the iPod? Got it, and, oh, by the way, a whole digital movie and TV store to go with it. Want smaller? Welcome to the Nano and Shuffle. And yes, unless you have been living under a rock for the last 3 months, the iPhone arrived to great fanfare and awe inspiration, outselling all other smartphones in the US in just its first month of existence, at almost twice the price of others. In short, the iPhone represented the crowning moment of Apple's recovery: they completed one of the greatest corporate comebacks of all times, with fanatically passionate customers and incredible innovation.


Now, what if I told you that this last week:
A. One company listened to its customers, focused on its amazing tradition of innovation, ruthlessly pursuing its focus, and was willing to take a financially risky move to try to ensure its continued success.
B. The other company continued to alienate its core customers, pushing away from true innovation, and selling itself out to a technology that had already been panned by many critics and leaves core users with a sense of unease about the future and if the company can be trusted.

Your answer to A. would be, instinctively, Apple, and B., Palm, right?

Wrong. Exactly the opposite.

Let's look at A. Palm heard the early reviews of its core customers to the Foleo, and decided to kill it before it ever reached the market. Period. The CEO announced the decision in his blog, as well as the estimated $10 million it cost to develop. He knew that he could not afford a flop, and could not afford to alienate the loyalty of his core customers. Instead, he not only killed the Foleo, but announced a refocusing of efforts around the Palm platform, reducing their involvement with the ever diluted Windows Mobile space. Palm knows that, without loyal customers who feel the company is responsive to their needs, and focused on the great devices, it will die. In truth, it may die even so, but releasing the Foleo would be the albatross that would pull down any hopes of a recovery. It took guts, determination, and was a direct reflection of the responses of loyal customers, and it was cautiously applauded by all.

As to B., well, you might have heard by now. Apple introduced the iPhone 2 months ago at $600 and, by all accounts, it continues to sell faster than any other smartphone. With no truly groundbreaking follow up, Steve Jobs decided to cannibalize his loyal customer base by announcing an unprecedented price cut: a full third of the price lopped off the phone, 60 days after it was released to, arguably, the greatest hype ever. Yes, there were some other variations on the iPod theme too, but the real story has been the absolute smack in the face Apple delivered to the thousands of customers who camped out to get their hands on a $600 phone that is, well, beautiful, but not meeting the expectations of the target audience it was priced for.

After days of uproar, his Steveness issued the most backhanded apology, mollifying as best he can those that saw $200 wasted with a promise for a $100 credit on iTunes media. Now, is this the way you apologize to your most loyal customers?:
"There is always change and improvement, and there is always someone who bought a product before a particular cutoff date and misses the new price or the new operating system or the new whatever. This is life in the technology lane. If you always wait for the next price cut or to buy the new improved model, you'll never buy any technology product because there is always something better and less expensive on the horizon. The good news is that if you buy products from companies that support them well, like Apple tries to do, you will receive years of useful and satisfying service from them even as newer models are introduced."

Worse, language like the above was paired with a a promise that the details of the $100 credit would be worked out soon ("Stay tuned."). How did a company that built itself back from death's door not realizing by throwing their best customers under the bus that they better have a medical team standing by to assist? They are "working it out?" This should have been anticipated and announced at the same time as the $200 price cut.

We've seen two companies who rely on loyalty from customers take very different approaches this week, and we have seen the results. Taking your loyal customers for granted is extremely dangerous, and both these companies should know: both had over 80% of their respective markets at one time, and both fell to disastrously smaller levels. One rebounded, but has not seemed to learn from the mistakes; the other is just beginning. There is only one sure thing here: both made very grave errors with their loyal customers, and the responses usually dictate the future.

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Monday, September 03, 2007
  The United States of Circuit City
"Papers, please." Sounds like a line out of a Nazi guard in an old war movie, right? Wrong. These were words (paraphrased) uttered in Brooklyn, Ohio, this very weekend by not just one ill informed individual, but two. Unfortunately, one was a Circuit City store manager and one, unbelievably, was a police officer.

If you've ever bought something from a large electronics store, you've always accepted the annoyance of having to show your receipt and have your package inspected as you leave. What you might not have expected are the consequences for not doing so. Worse, you probably don't know your rights in this regard. This man did, and exercised them both this weekend. His reward? Arrested on trumped up charges. You can't believe this until you read it.

By the way, Circuit City is not the only one who has gotten out of control with this. Similar stories of multiple Best Buy's are far too common. As a former electronics retail store manager, I can honestly say that there is a line where common sense is a requirement of your job. If you don't feel so, you've crossed that line. In this story, the hapless Circuit City store manager is about to find out what happens when that line gets crossed.

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Friday, August 31, 2007
  My Two Wheeled Partner

Courtesy of the San Francisco Chronicle, a good look at my typical morning commute, as well as Charles, my co-founder of Loyalty Lab and the inspiration for my two wheeled commuting. (Psst...he's the one in the spandex in the photo.)

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Thursday, August 16, 2007
  A Sharper Guillotine Blade
As Richard Solo waxes, it appears my old mates at The Sharper Image are headed for an ignominious end. With rumors of bankruptcy in the Ionic Breeze-laden air, investors are dumping stock, and the lawsuits are looming large. Personally, having invested a decade of my life in the company's success, I'd hate to see it end this way, but it sure seems headed that way.

What's needed now is an investment group to buy the company, liquidate/reduce the footprint of the stores, and focus on relaunching the brand as an online destination. For instance, a line of products from Engadget and Gizmodo: focus on taking preorders for the Optimus Keyboard, and the like. A clearing house for new, cool and hip products: Japanese phones, concept products, mixed with old reliables like USB-powered devices at low prices. And finally, they would need to mix the business model: RSS feeds of the cool blogs with pay per click ad revenue, mixed with revenue from product sales and affiliate commissions for indirect complimentary services, like music downloads etc.

In fact, I wonder if there's a point man the investors could look to. A proven innovator and enterpreneur. Could this be...the return of....RT?

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Sunday, August 12, 2007
  Your Second Life Comes SECOND
Um. I don't know what to say. There are so many ways to look at this article from WSJ about a man's Second Life "marriage" interfering with his real life, I hardly know where to begin. For instance, when did the Wall Street Journal become the Jerry Springer Show (Rupert??? Hello????)? Why did these people agree to all participate in the article, knowing they'd be exposed for the absolute insane people they are? And, most of all, given the clearly irreconcilable differences here, why is this not just a case for a quickie divorce? Read for yourself to see a cross section of online society becoming a supermarket tabloid:

Is This Man Cheating on His Wife?
Alexandra Alter on the toll one man's virtual marriage is taking on his real one and what researchers are discovering about the surprising power of synthetic identity.
By ALEXANDRA ALTER
August 10, 2007; Page W1

On a scorching July afternoon, as the temperature creeps toward 118 degrees in a quiet suburb east of Phoenix, Ric Hoogestraat sits at his computer with the blinds drawn, smoking a cigarette. While his wife, Sue, watches television in the living room, Mr. Hoogestraat chats online with what appears on the screen to be a tall, slim redhead.

He's never met the woman outside of the computer world of Second Life, a well-chronicled digital fantasyland with more than eight million registered "residents" who get jobs, attend concerts and date other users. He's never so much as spoken to her on the telephone. But their relationship has taken on curiously real dimensions. They own two dogs, pay a mortgage together and spend hours shopping at the mall and taking long motorcycle rides. This May, when Mr. Hoogestraat, 53, needed real-life surgery, the redhead cheered him up with a private island that cost her $120,000 in the virtual world's currency, or about $480 in real-world dollars. Their bond is so strong that three months ago, Mr. Hoogestraat asked Janet Spielman, the 38-year-old Canadian woman who controls the redhead, to become his virtual wife.

The woman he's legally wed to is not amused. "It's really devastating," says Sue Hoogestraat, 58, an export agent for a shipping company, who has been married to Mr. Hoogestraat for seven months. "You try to talk to someone or bring them a drink, and they'll be having sex with a cartoon."

Mr. Hoogestraat plays down his online relationship, assuring his wife that it's only a game. While many busy people can't fathom the idea of taking on another set of commitments, especially imaginary ones, Second Life and other multiplayer games are moving into the mainstream. With some 30 million people now involved world-wide, there is mounting concern that some are squandering, even damaging their real lives by obsessing over their "second" ones. That's always been a concern with videogames, but a field of study suggests that the boundary between virtual worlds and reality may be more porous than experts previously imagined.

Nearly 40% of men and 53% of women who play online games said their virtual friends were equal to or better than their real-life friends, according to a survey of 30,000 gamers conducted by Nick Yee, a recent Ph.D. graduate from Stanford University. More than a quarter of gamers said the emotional highlight of the past week occurred in a computer world, according to the survey, which was published in 2006 by Massachusetts Institute of Technology Press's journal Presence.

"There's a fuzziness that's emerging between the virtual world and the real world," says Edward Castronova, associate professor in the Department of Telecommunications at Indiana University, Bloomington.

Weekends As 'Dutch'

A burly man with a long gray ponytail, thick sideburns and a salt-and-pepper handlebar mustache, Mr. Hoogestraat looks like the cross between a techie and the Grateful Dead fan that he is. He drives a motorcycle and wears faded black Harley-Davidson T-shirts around the house. A former college computer graphics teacher, Mr. Hoogestraat was never much of a game enthusiast before he discovered Second Life. But since February, he's been spending six hours a night and often 14 hours at a stretch on weekends as Dutch Hoorenbeek, his six-foot-nine, muscular, motorcycle-riding cyber-self. The character looks like a younger, physically enhanced version of him: a biker with a long black ponytail, strong jaw and thick handlebar mustache.

In the virtual world, he's a successful entrepreneur with a net worth of about $1.5 million in the site's currency, the linden, which can be earned or purchased through Second Life's Web site at a rate of about 250 lindens per U.S. dollar. He owns a mall, a private beach club, a dance club and a strip club. He has 25 employees, online persons known as avatars who are operated by other players, including a security guard, a mall concierge, a manager and assistant manager, and the "exotic dancers" at his club. He designs bikinis and lingerie, and sells them through his chain store, Red Headed Lovers.

"Here, you're in total control," he says, moving his avatar through the mall using the arrow keys on his keyboard.

Virtual worlds like Second Life have fast become a testing ground for the limits of relationships, both online and off. In the game, cyber sex, marriage and divorce are common. Avatars have sued one another, as well as the site's parent company, Linden Lab, in real-life courts for in-game grievances such as copyright infringement and property disputes. The site now has more than eight million registered "residents," up from 100,000 in January 2006, though the number of active users is closer to 450,000, according to Linden Lab's most recent data. A typical "gamer" spends 20 to 40 hours a week in a virtual world.

Academics have only recently begun to intensively study the social dynamics of virtual worlds, but some say they are astonished by how closely virtual relationships mirror real life. "People respond to interactive technology on social and emotional levels much more than we ever thought," says Byron Reeves, a professor of communication at Stanford University. "People feel bad when something bad happens to their avatar, and they feel quite good when something good happens."

On a neurological level, players may not distinguish between virtual and real-life relationships, recent studies suggest. In an experiment conducted at the University of Washington's Institute for Learning and Brain Sciences, test subjects were hooked up to neuroimaging machines while they played a simple computer game in which they moved colored discs to form a pattern. When told that they were playing with a person rather than a computer, participants showed increased activity in areas of the brain that govern social interaction.

Other experiments show that people socializing in virtual worlds remain sensitive to subtle cues like eye contact. In one study, participants moved their avatars back if another character stood too close, even though the space violation was merely virtual, says Jeremy Bailenson, director of Stanford's Virtual Human Interaction Lab, which was created five years ago to study social behavior in virtual worlds. "Our brains are not specialized for 21st-century media," says Prof. Reeves. "There's no switch that says, 'Process this differently because it's on a screen.' "

A Full-Blown Dance Party

On a Saturday afternoon in July, Mr. Hoogestraat decides to go to the beach. He lights a cigarette and enters Second Life, one of 42,752 people logged on at the time. Immediately, he gets an instant message from Tenaj Jackalope, his Second Life wife, saying she'll be right there.

They meet at their home, a three-story, modern-looking building on a grassy bluff overlooking the ocean, then head to his beach club by teleporting, or instantly moving to a new screen by typing in a location. A full-blown dance party is under way. A dozen avatars, digital representations of other live players, gyrate on the sand, twisting their hips and waving their arms. Several dance topless and some are fully nude. Dutch gets pelted with instant messages.

"What took you so long, Dutch?" a dancer asks.

"Howdy, Boss Man," an avatar named Whiskey Girl says.

Before discovering Second Life, Mr. Hoogestraat had bounced between places and jobs, working as an elementary schoolteacher and a ski instructor, teaching computer graphics and spending two years on the road selling herbs and essential oils at Renaissance fairs. Along the way, he picked up a bachelor's degree in education from Arizona State University and took graduate courses in education and instructional technology at the University of Wyoming and the University of Arizona. He currently works as a call-center operator for Vangent Inc., a large corporation that outsources calls for the government and private companies. He makes $14 an hour.

Mr. Hoogestraat learned about Second Life in February, while watching a morning news segment. His mother had just been hospitalized with pancreatic cancer -- she died two weeks later -- and he wanted a distraction. He was fascinated by the virtual world's free-wheeling, Vegas-like atmosphere. With his computer graphics background, he quickly learned how to build furniture and design clothing. He upgraded his avatar, buying defined stomach muscles, a furry chest and special hair that sways when he walks. Other, missing anatomy was also available for purchase. Before long, Mr. Hoogestraat was spending most nights and weekends acting out his avatar's life.

When Mr. Hoogestraat was diagnosed with diabetes and a failing gall bladder a few months ago, he was home-bound for five weeks. Some days, he played from a quarter to six in the morning until two in the morning, eating in front of the computer and pausing only for bathroom breaks.

During one marathon session, Mr. Hoogestraat met Tenaj (Janet spelled backward) while shopping. They became fast friends, then partners.

A week later, he asked her to move into the small apartment he rented in Phantom Island, an area of Second Life. In May, they married in a small ceremony in a garden overlooking a pond. She wore a strapless white dress that she bought at a Second Life yard sale and he wore a tuxedo. Thirty of their avatar friends attended.

"There's a huge trust between us," says Ms. Spielman, a divorced mother of two who works in office sales in Calgary, Alberta, and began logging on to Second Life in January. "We'll tell each other everything."

That intimacy hasn't spilled into real life. They never speak and have no plans to meet. Aside from the details they share over Second Life instant messages, each knows little about the other beyond what's posted on their brief online user profiles.

Mr. Hoogestraat's real-life wife is losing patience with her husband's second life. "It's sad; it's a waste of human life," says Mrs. Hoogestraat, who is dark-haired and heavy-set with smooth, pale skin. "Everybody has their hobbies, but when it's from six in the morning until two in the morning, that's not a hobby, that's your life."

The real Mrs. Hoogestraat is no stranger to online communities -- she met her husband in a computer chat room three years ago. Both were divorced and had adult children from previous marriages, and Mrs. Hoogestraat says she was relieved to find someone educated and adventurous after years of failed relationships. Now, as she pays household bills, cooks, does laundry, takes care of their three dogs and empties ashtrays around the house while her husband spends hours designing outfits for virtual strippers and creating labels for virtual coffee cups, she wonders what happened to the person she married.

Just a Game

One Saturday night in early June, she discovered his cyber wife. He called her over to the computer to show her an outfit he had designed. There, above the image of the redheaded model, it said "Mrs. Hoorenbeek." When she confronted him, he huffily replied that it was just a game.

Two weeks later, Mrs. Hoogestraat joined an online support group for spouses of obsessive online gamers called EverQuest Widows, named after another popular online fantasy game that players call Evercrack.

"It's avalanched beyond repair," says Sharra Goddard, 30, Mrs. Hoogestraat's daughter and a sign-language interpreter in Chandler, Ariz. She says she and her two brothers have offered to help their mother move out of the house.

Mrs. Hoogestraat says she's not ready to separate. "I'm not a monster; I can see how it fulfills parts of his life that he can no longer do because of physical limitations, because of his age. His avatar, it's him at 25," she says. "He's a good person. He's just fallen down this rabbit hole."

Mr. Hoogestraat, for his part, doesn't feel he's being unfaithful. "She watches TV, and I do this," he says. "I tried to get her involved so we could play together, but she wasn't interested."

Family-law experts and marital counselors say they're seeing a growing number of marriages dissolve over virtual infidelity. Cyber affairs don't legally count as adultery unless they cross over into the real world, but they may be cited as grounds for divorce and could be a factor in determining alimony and child custody in some states, according to several legal experts, including Jeff Atkinson, professor at the DePaul University College of Law and author of the American Bar Association's "Guide to Marriage, Divorce and Families."

This past June, the American Medical Association called for more psychiatric research on excessive gaming, but backed away from classifying videogame addiction as a formal disorder.

Some gamers say the addictive dangers have been overstated, citing surveys that show most players spend fewer hours online than the average American spends watching television. And unlike television, online games are social. In June, when Mr. Hoogestraat first logged on to Second Life after he had his gall bladder removed, he was greeted with 50 messages from virtual friends asking him how the surgery went.

Still, some antigaming organizations and psychiatrists say the social aspects of such games may be driving up pressure to play for longer stretches. Kimberly Young, a clinical psychologist and founder of the Center for Internet Addiction Recovery, said the majority of the 200 cases a year she sees for counseling involve interactive fantasy role-playing games. "They start forming attachments to other players," she says. "They start shutting out their primary relationships."

Back in the world of Second Life, Mr. Hoogestraat's avatar and Tenaj have gotten bored at the beach, so they teleport to his office, a second-floor room with a large, tinted window overlooking the stage of the strip club he owns. Tenaj plays with her pug, Jolly Roger, commanding the dog to sit and fetch its toy. Dutch drinks a Corona, Mr. Hoogestraat's beer of choice in real life, and sits at his desk. For a while, Mr. Hoogestraat, sitting at his computer, stares at an image of his avatar sitting at his computer.

The next morning, he's at his computer at 10 a.m., wearing the same black Harley-Davidson T-shirt. It is Sunday. He's been logged on to Second Life for four hours.

Staring purposefully at the screen, he manipulates his avatar, who is shirtless in cut-off denim shorts and flip-flops and renovating the lower level of his mall. "Sunday is my heavy-duty work day," Mr. Hoogestraat explains. Earlier that morning, he evicted 10 shop owners who hadn't paid rent, and signed up four new vendors, including an avatar named Arianna who sells virtual necklaces and women's shoes.

From the kitchen, Mrs. Hoogestraat asks if he wants breakfast. He doesn't answer. She sets a plate of breakfast pockets on the computer console and goes into the living room to watch a dog competition on television. For two hours, he focuses intently on building a coffee shop for the mall. Two other avatars gather to watch as he builds stairs and a counter, using his cursor to resize wooden planks.

At 12:05, he's ready for a break. He changes his avatar into jeans, leather motorcycle chaps and motorcycle gloves, and teleports to a place with a curvy, mountain road. It's one of his favorite places for riding his Harley look-alike. The road is empty. He weaves his motorcycle across the lanes. Sunlight glints off the ocean in the distance.

Mrs. Hoogestraat pauses on her way to the kitchen and glances at the screen.

"You didn't eat your breakfast," she says.

"I'm sorry, I didn't see it there," he responds.

"They probably won't taste any good now," she says, taking the plate.

Over the next five hours, Mr. Hoogestraat stares at the computer screen, barely aware of his physical surroundings. He adds a coffee maker and potted palms to the cafe, goes swimming through a sunken castle off his waterfront property, chats with friends at a biker clubhouse, meets a new store owner at the mall, counsels an avatar friend who had recently split up with her avatar boyfriend, and shows his wife Tenaj the coffee shop he's built.

By 4 p.m., he's been in Second Life for 10 hours, pausing only to go to the bathroom. His wrists and fingers ache from manipulating the mouse to draw logos for his virtual coffee cups. His back hurts. He feels it's worth the effort. "If I work a little harder and make it a little nicer, it's more rewarding," he says.

Sitting alone in the living room in front of the television, Mrs. Hoogestraat says she worries it will be years before her husband realizes that he's traded his real life for a pixilated fantasy existence, one that doesn't include her.

"Basically, the other person is widowed," she says. "This other life is so wonderful; it's better than real life. Nobody gets fat, nobody gets gray. The person that's left can't compete with that."

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Saturday, June 30, 2007
  We now live in an iPhone world
Yep, it's official: Mr. Jobs owns our souls. After yesterday's frenzied national campout, the iPhone is no longer a fantasy. Rather than regale you with a recap of the festivities, check out Google News' coverage.

And no, I did not wait in line for one. I might peep one today, but we'll see.

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Monday, June 11, 2007
  Richard is BACK!
The man who invented the gadget craze of the 80's and 90's is back. After being ousted at The Sharper Image, get ready for RichardSolo.com, a bare-bones gadget e-commerce site that looks like TSI-lite for product and 1996 for design.

The Marin IJ has some even handed coverage of it, but this little snippet from the web said it best:

"Sometimes successful company founders should know when to fold them. Case in point is Richard Thalheimer who founded Sharper Image and has now founded an eCommerce site called Richard Solo that painfully displays that Thalheimer doesn't understand modern eCommerce....Richard Solo is an ugly site that has now competitive advantages. You can find better prices on Amazon, eBay or Froogle and you can discover cooler gadgets via Gizmodo or Engadget. We almost feel sorry for the guy, trying to stick it to his old company but making an inept attempt at it."

Ouch. Well, don't count him out, yet. This is a man who's business was supposed to have been killed several times over: Circuity City Express in the early '90's, the Internet later, and so on, but he kept on coming. And there's nowhere to go but up for RichardSolo.com!

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Saturday, May 26, 2007
  The Chronicle: The End Is Nigh
I have commented several times about my opinion of San Francisco's "premier" paper, the San Francisco Chronicle. When I first moved to the Bay Area, I was disgusted with this laughable excuse of a paper. As a man who consumed the Boston Globe from cover to cover, every day, for over a decade, I was shocked that a city with such a proud literary history called this pathetic excuse of newsprint as it's paper.

In the last 5 years, however, I have been pleasantly surprised to see the quality of it's coverage improving, with an emphasis on actually finding stories, instead of just picking up what the wires spit out. Coincidentally, it happened that this was the time the Hearst group picked up the paper, and made a real dedicated effort on it, and it was paying off. From the Barry Bonds scandals, to the coverage of Nancy Pelosi's ascension to the head of the Congress, the paper has been getting to be a real paper, and one that is actually a pleasure to occasionally read. And the Chronicle's website, SFGate is easily the best newspaper website out there, even beyond NYTimes.com or any other.

Ironically, after the year in which a successful film was released about the rich history of the Chronicle and the Zodiac killer, the paper itself is falling under the killer's stare. It is a bit sad to see that the increased quality has not been enough to stem the tide of red ink, as the Chronicle announced they are laying off 25% of the newsroom this summer.

To me, in the heart of Silicon Valley, this is the time to make a major strike. Hearst should make a deal with the folks who are providing the LCD's for the OLPC, and strike a delivery deal with the cell carriers. The Chronicle should go all digital: you get the screen/device for free, as long as you a) subscribe to the service for rates equivalent to a newspaper subscription, and b) agree to read the "paper" (and see the embedded ads) at least twice a week. In return, the device will automatically download the morning paper over the cell provider's network, and be ready for your commute. No waiting to download pages; you read them instantly, along with the photos and layout. How to protect it from being a fad? If you don't read the paper, you'll get one month to return the device, or you'll be charged $100.

The ad revenue still drives the business. The platform gets into the hands of commuters. The content still drives the adoption. Then, the Chronicle can license other Hearst publications to be available on the device, or make the ads clickable. The possibilities are endless: the key is making a lightweight, fully loaded device with the right content behind it. No more messy newsprint, and a truly trailblazing approach.

C'mon, Chron: if anyone can, you can.

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Saturday, May 19, 2007
  Big Brother Takes Flight
Unmanned Aerial Vehicles, or UAV's, were once the subject of science fiction (Real Genius, anyone?), but the one thing this illegal invasion of a sovereign nation (aka, the horribly misnamed "Iraq War") has proven is that UAV's are here to stay. With "an astonishing 80%" of all military flights in Iraq being flown by UAV's today, these remote controlled/robot planes have proven their worth as bloodless soldiers in the military skies, from surveillance to full on hunter/killers.

Despite the rampant warning we have received from countless scifi films about the wisdom of allowing semi-autonomous vehicles of speed and strength roaming the skies, these UAV's are slowly seeping their way into the civilian skies. This Popular Mechanics article focuses on their ever increasing presence in our day to day lives, as Big Brother straps on his goggles and takes to the air. As with all such adoptions of military technology to civilian matters, the first incursions are benign: forest fire monitoring, border patrol, even search and rescue. However, it doesn't take an oracle to see the black and white paint being slapped on in less than 5 years to assist police with urban pacification.

It's awe-inspiring, creepy, and generally good when humans can be spared dangerous jobs, but the applications of this technology to the individual are definitely worth keeping an eye on. After all, that next speeding ticket you get might not be from the cruiser with the radar gun, but from the cruise missile with the laser target designator.

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Wednesday, May 16, 2007
  Coffee is the new Data
Ok, so what the heck is with this trend to deliver data via alternative indicators? For example, Ambient Devices makes the Orb, which changes shade of color to determine weather, stock trends, etc. We've all heard the little chirp of the IM client as a message comes in (like you couldn't see the window spawn). But this one takes the cake...er, cup.

News Brews brings the world of RSS feeds, dynamic data monitoring and on demand computing together with...a cup of coffee. Yep, the system monitors RSS feeds for the mention of certain countries and dynamically, once a minute, changes the brew of coffee it makes, in response. As TechDigest says,

"The concept behind News Brews is, why read the news when you can just drink it? The steampunk-style machine contains a wide geographical assortment of coffee beans, and generates a custom blend every minute depending on what coffee-origin-country is in the RSS fees. If Ethiopia scans at 33%, Kenya at 50% and Costa Rica at 17%, you'll get coffee that's half Kenya, with an Ethiopian buttress and a Costa Rican topper. Your tongue will, theoretically, know the difference."


Has to be seen (tasted?) to be believed. Check the website for a nice video pitch.

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Saturday, May 05, 2007
  Stranger than Fiction: The CIA, Iran hostages, and a sci-fi film
It's 1979. Several Americans have escaped the militant takeover of the embassy, and are hiding, Anne Frank-style, in various other diplomatic residences. The US knows they are there, but how to get them out? In a story that Robert Ludlum's editors would have rejected, the CIA invented a fake science fiction film, hired Hollywood professionals, and, improbably, used it as a cover to smuggle these people out.

This is too good to be believed. Read for yourself, courtesy of Wired Magazine.

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Saturday, March 17, 2007
  Hot Tub. Big Screen TV. Car. ZERO Emissions.
Ladies and gentlemen, have a look at the man on the left. Looks fairly unassuming, right? Hardly what you would think of as a revolutionary? Well, prepare to bow down before him: he has created a zero emission home and car ecosystem that he lives by. As the Christian Science Monitor says,
"On sunny days, solar panels on the roof of Strizki's detached garage generate more than enough electricity to power his home. The excess electricity powers a device inside the garage called an electrolyzer, which transforms a tank of water into its base elements – oxygen and hydrogen.

"The oxygen is released into the atmosphere, while the hydrogen is stored in 10 1,000-gallon propane tanks on Strizki's property. In the winter, when the solar panels collect less energy than the home needs, that hydrogen is piped to an air-conditioner-size fuel cell, located just outside the garage, which generates electricity."

That's zero emissions, and as much power as you want. Better, he also has a hydrogen fuel cell powered car that he fills with hydrogen from his own electrolyzer. Yep, total power and transportation from sunlight and water.

The downside? He spent $500K, but got $250K back from the state. The hydrogen generator system is hardly efficient (he loses 50% in evaporation). But, his quote is the most telling:
"Nothing is as wildly expensive as destroying the whole planet."

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Thursday, January 11, 2007
  San Franciscans Gone Wild
I spent a few years as a professional singer. A Cappella harmony, Barbershop, even a little Gilbert & Sullivan. Who knew this could get you physically assaulted, especially in the most liberal area of the country? Well, apparently, some of my fellow Bay Areans decided a group from Yale who sang the National Anthem on New Year's Eve deserved something in return for their patriotism, violence-style.

I'm a firm Libertarian, and generally side on the Blue State aspects of the country, but this makes me see Red. This is despicable. Not only is violence like this absolutely abhorrent and intolerable, but to take violence against people making music, on a night of national revelry, in this area...it's enough to make someone agree with Bill O'Reilly.

San Francisco, specifically the people who did this: you should not only be ashamed, prosecuted, and punished: you should be publicly humiliated and pilloried. I'm ashamed to share the same country, state, and city with you.

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Wednesday, December 06, 2006
  James Kim: killed by Google Maps?
James Kim's body was found today, ending the search for the tech community member. As I wrote last week, James was always a great part of my tech and media consumption, and I am extremely sad for his family and coworkers.

Now the question turns to "How could this happen?" Interestingly, MSNBC suggests part of the blame may lie with our ever-increasing reliance on Google Maps. I have been a victim of this myself: in our driving trip to Dallas and the Southwest in 2001, I used Microsoft's Streets & Trips to plan a scenic drive to Taos...and almost got Amy and I killed, careening off a cliff at 60 MPH, Roadrunner cartoon style. The road went from a flat blacktop in the desert to a dirt trail barely large enough for a single car in 50 feet...and the trail ended above a cliff. This, because I asked Microsoft for a "scenic" route.

Looks like there's a market for a new map site: one that uses real-world info. Seems like an ideal Web 2.0 idea: combine social networking with Flickr and Google Maps, with an associated wiki: Voila! Mapr is born. :-)

Note: I will collect royalties on that and donate them to James Kim's family, if it's used.

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Saturday, December 02, 2006
  We may not be alone...how did we not know?
One of the things I love about the web, and interesting news sites like digg, the new Netscape, and Original Signal is stumbling across some sort of piece of information I never knew...and should have. For instance, take this example of a comparatively massive radio signal we received...from space. Yes, all you Contact fans, it actually happened: a full on, ET Phoning Us signal, so powerful it made the person monitoring the signal note "WOW!" on the record, and it has been known as the WOW signal ever since.

Now, get this: it happened almost 20 years ago. 2 decades, I never even heard of this. No, it has not been repeated (nor were there any encoded signals captured for special plans for teleporters, alas), which, of course, led to speculation it was an anomaly. Here's the part of the article I found most convincing, however:

The signal's original discoverer Jerry Ehman doesn't care to speculate on its source, and he remains scientifically skeptical. "Even if it were intelligent beings sending a signal," he said in an interview, "they'd do it far more than once. We should have seen it again when we looked for it 50 times."

Perhaps. But consider that when humankind used the Arecibo radio telescope to send a message out into space in 1974, it was only sent once.


Makes you think...and hope.

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