Posts Tagged News Corp

Why Twitter’s “verified account” failure matters

Posted by on Tuesday, 3 January, 2012

The new year brought a treat for those who like to follow aging media moguls, with the launch of official Twitter accounts belonging to both News Corp. chairman Rupert Murdoch and his wife Wendi Deng, including some awkward banter around a tweet that Murdoch later deleted. The only problem with the voyeuristic appeal of this exchange, however, is that Deng wasn’t the real thing — although the account was marked as “verified,” with Twitter’s blue check mark, it was revealed to be a fake on Tuesday. A simple slip-up? Perhaps, but one that reinforces how little we know about Twitter’s verification process, something that is becoming more and more important as the service grows.

When Murdoch showed up on Twitter on December 31, there was widespread skepticism about whether it was the real News Corp. billionaire or not, despite the fact that the account was marked as verified. But a tweet from Twitter co-founder and chief product officer Jack Dorsey confirmed that it was the real Murdoch — and the “verified” check-mark, combined with the apparent back-and-forth between the Wendi Deng account and Murdoch’s, convinced many that it was also real (although some, including publishing industry veteran Michael Wolff, continued to doubt this).

How was the account verified? We don’t know

On Tuesday, however, it emerged that the Wendi Deng account had been set up as a prank by a British man, who said he “set up the account for a laugh” during the holidays, when he saw how much attention the Murdoch account was getting. The account’s creator said that he was as surprised as anyone when his account showed up with a blue check-mark, and that he hadn’t been contacted by anyone at Twitter about who he was or whether the account was for real, telling the Guardian:

I just couldn’t believe they would have verified such a high profile account without checking it out, but I absolutely received no communication from Twitter to the email address I used to register.

Twitter has refused to speak publicly about what happened with the Deng account, or to explain why it was verified and then suddenly un-verified — and the company has also repeatedly refused to talk on the record about how the verification process as a whole works, and why some accounts are chosen for verification and others aren’t. Even if the Deng verification was a simple screw-up due to reduced staffing levels over the holidays, Twitter’s radio silence on the issue makes it even harder to trust the entire process, and that could have ramifications that go beyond just the Murdoch case.

The “verified” program started with the blue check mark as a beta in 2009, primarily because a number of celebrities had complained about fake accounts pretending to be them, and the company said it wanted to help users figure out which were real. For a time, anyone could apply to have their account verified by using a form on the Twitter website, but this was later phased out and verification is now done on what the company calls a “case by case” basis, including advertisers and partners.

Twitter needs to be more transparent about the process

Given the rapid growth in Twitter’s user base, it’s not surprising that Twitter would have problems scaling a widespread verification program — and in some ways, doing this runs against the grain for the network, which has made a point of not requiring real names from users the way that Facebook and Google+ have. But even worse than having an arbitrary verification process is having one that doesn’t work properly, and one that the company is so opaque about. It’s not clear why Twitter doesn’t talk about it, but this vacuum of information is hardly conducive to gaining the trust of users.

And trust is something that Twitter needs in spades, especially as it grows and becomes a crucial part of the way that news and other information spreads in a social-media age. The network is already in a delicate situation when it comes to issues like free speech, with the State Department pressuring it to shut down accounts that belong (or appear to belong) to terrorist organizations, and other lobby groups launching legal claims against the company because it allegedly supports entities like Hezbollah by giving them a platform.

The company’s refusal to provide more details about how the verification process functions may stem in part from its desire to protect the users it is verifying, or to prevent the system from being gamed somehow. But if it is going to continue to ask for the trust of its users, it is going to have to be more transparent about how it manages the network, or risk losing the faith that it has spent so much time building up.

Post and thumbnail photos courtesy of Flickr users Hans Gerwitz and See-ming Lee

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If the News Corp Phone Hacking Scandal Were Made Into a Movie… [Video]

Posted by on Monday, 18 July, 2011
The phone-hacking scandal that saw Rupert Murdoch close the UK’s News of the World newspaper and several high-profile resignations has reached a crescendo. Thankfully there’s a faux movie trailer to make light of the situation. [Thanks, Petah!] More »








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Can Photobucket Make a Comeback through M&A?

Posted by on Thursday, 5 May, 2011

Photobucket wants to reclaim a spot at the top of the crowded photo and video sharing space, and it’s prepared to open its wallet to do so.

The Seattle-based company is actively looking at a number of potential acquisition targets, CEO Tom Munro told me in an interview this week. Photobucket is currently turning a profit and is “absolutely serious” about looking at bolt-on buys, he said, noting that the company would likely pay for deals with a mix of cash and stock. “We’re actually looking at a number of acquisition opportunities,” he said. “We’re not looking to acquire companies for user growth; we’re looking to acquire technologies.”

While Photobucket does not have much of a track record as an acquirer, Munro himself has both sell- and buy-side M&A experience. Most recently as CFO of photo software firm Ontela, he oversaw Ontela’s December 2009 acquisition of the Photobucket assets from News Corp.  Munro’s resume also includes time as CFO of software firm Vallent, where he handled several acquisitions before the company’s sale to IBM. He assumed the CEO role for Photobucket in October 2010.

The new focus on M&A is part of a larger strategy to aggressively add more user-friendly applications in the months ahead. Photobucket’s first step in this new direction came Wednesday, with the debut of an Instagram-like app called Snapbucket, which allows users to add filters and effects to photos and share them through social networks.

A lot has changed in the online photo space since Photobucket’s inception in 2003. Facebook is now far and away the Internet’s top photo sharing destination, with more than 2.5 billion photos being added to the site every month. The iPhone with its increasingly awesome camera capabilities has created a gold rush for mobile app developers and led to runaway successes like Instagram.

Meanwhile, Photobucket has had a rocky few years. The company was acquired by media conglomerate News Corp. for 0 million in 2007 , only to be sold off in late 2009 after suffering from highly publicized DNS attacks and reported failures in corporate integration.

Photobucket has spent the better part of 2010 “transforming” itself, Munro told me. “We brought in a new attitude and a new management team, and got the business back to profitability.”

In our interview, Munro made it clear that Photobucket is highly motivated to get back in the game. The ambition will probably come in handy for the company, which has quite a bit of catching up to do. Whether the innovation comes from building new technology or buying it, Photobucket’s big challenge for 2011 is getting up to speed in what is now a very competitive space.

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Royal wedding livestream breaks hearts, records

Posted by on Saturday, 30 April, 2011

No frogs transformed into princes and no wicked stepmothers were vanquished — not on camera, at least — but today’s royal wedding managed to capture the world’s imagination. Thanks to partnerships with CBS, the Associated Press, UK Press Association, and Entertainment Tonight, the marriage between Prince William and Kate Middleton broke viewing records on Livestream.com, maxing out at 300,000 simultaneous viewers and a total of “at least 2 million” unique users, according to Max Haot, the site’s CEO. We reached out to YouTube and Facebook to see how they did on the streaming front, but neither site has a finally tally — though a Facebook spokesperson did tell us that 6,819,072 people have commented on the wedding in the past 24 hours. We don’t want to rain on anyone’s parade, but we hear News Corp. has secured the rights to the Royal Divorce — just in case.

Royal wedding livestream breaks hearts, records originally appeared on Engadget on Sat, 30 Apr 2011 06:29:00 EDT. Please see our terms for use of feeds.

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Was It Google That Killed MySpace?

Posted by on Friday, 8 April, 2011

Knife by Mavadam on FlickrIt’s been obvious for a long time that MySpace is on the ropes, suffering under a series of pummeling blows including an ever-changing executive lineup and slashing staff, to being put up for sale by owner Rupert Murdoch.

And the general consensus is that it has been knocked out by a combination of two interlinked factors: its progress was slowed by dealings with its corporate parent News Corporation, which led to it being outmaneuvered by a younger, hungrier, smarter rival in Facebook.

That’s the main thrust of this substantial and interesting profile of the company by Reuters reporter Yinka Adegoke. It’s a long read, coming in at a little more than 4,000 words, but is probably the best summary I’ve read of the ups and downs of a website once deemed hot property but now looked at with derision.

But the article also points out that it’s not as simple as News Corp clumsily handing Facebook the keys to the social networking kingdom. In fact, the piece suggests, perhaps it was actually Google rather than Facebook that unintentionally dealt the killer blow to MySpace.

Think back to 2006: that’s when they signed 0 million, three year advertising deal to turn Google into MySpace’s exclusive providers of text ads and search. It was a great cash prize for Murdoch’s purchase, but actually ended up being a weight around its neck. The deal’s targets required MySpace to crank up page views and increase already-heavy advertising space at precisely the same moment that Facebook was pushing forward with a clean and easily-understood design.

As Adegoke reports:

Around this time, the Google agreement, which had been hailed as a major coup by Chernin and Levinsohn as well as Wall Street, started to be viewed by Myspace executives as a double-edged sword. The Google deal required a certain number of Myspace user visits on a regular basis for Google to pay Myspace its guaranteed 0 million a year for three years. That reduced flexibility as Myspace couldn’t experiment with its own site without forfeiting revenue.

“It was a good deal in the short-term but in the long term it ended up not being so good,” said a third former Myspace executive close to advertising sales. “We were incentivized to keep page views very high and ended up having too many ads plus too many pages, making the site less easy to use than a site like Facebook.”

This moment is often overlooked, but it turned out to be absolutely crucial. And, of course, it’s kind of darkly amusing that Google — in trying to find a partner who could help it in the confusing world of social web — managed to give a huge boost to one of its nascent rivals.

It suffocated MySpace with love — perhaps something for Larry Page to think about as he reorganizes Google to try and retain its commanding position online.

Photograph used under CC license courtesy of Flickr user Mavadam

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The Daily Is Interesting, But Is It the Future of Newspapers?

Posted by on Wednesday, 2 February, 2011

There’s been a lot of pre-launch interest in Rupert Murdoch’s new iPad “newspaper” The Daily. This is partly because the News Corp. founder is known for making ambitious bets on new technology — even if they don’t always work out, as he found with MySpace — and also because Apple was a key partner, and used the News app to launch its new subscription model for content (it costs 99 cents a week or for a year).

So does The Daily live up to its billing? Is it the future of newspapers? Not really. It does some interesting things, but it also does some very confusing things, particularly around sharing content. And much of it, apart from some bells and whistles, consists of fairly humdrum day-old stories that you might read in, well…a regular old printed newspaper.

The first clue to what you get with The Daily, as more than one person has noted, is in the name itself. It is published more or less just like a regular newspaper, in the sense that the bulk of the content is produced and then published to the app once a day. Although News Corp. made a point of noting at its launch event that the app will be updated throughout the day as news breaks, there was no sign of that happening while I used it for most of the day on Wednesday, and that was while riots were still breaking out in Cairo.

Even though Twitter content appeared in a box in one of the stories (a profile of Rihanna) and had live links, the actual tweets themselves were almost 12 hours old — even after the app updated itself and said it was downloading a new version of the paper.

It’s like a newspaper…but on the iPad!

The result is that you get something that feels very much like a newspaper, with stories about things that happened yesterday. And while you can share stories via Facebook and Twitter, none of the pieces contain any links to anything on the web, making the app feel very much like similar apps from print publications like the New York Times, Esquire and Wired — disconnected from the Internet in a lot of ways. There are live links in Twitter streams in stories (particularly the customizable sports section, which lets you follow teams), and there is a small section of links called “What We’re Reading,” but other than that there isn’t a whole lot of linking going on at all.

There’s also no way to contact the writers or interact with them in any way, as Salon founder Scott Rosenberg noted, apart from posting a comment (which you can also do via audio, an unusual choice).

The general web user can’t get to any articles on The Daily’s website. But when you share a link to a story in the Daily via Facebook or Twitter, people can click through and read it on the site — a “social media passthrough” that the New York Times is also reportedly building into its upcoming web paywall. But with The Daily, when you click through to read the piece, you get what amounts to a screenshot of the app page — an image, rather than text. With some stories, you also get a large warning, complete with a big exclamation mark, that says the story is “missing content available only in The Daily iPad app.”

All of that aside, the biggest issue with The Daily is that even when you share a story, there is little that might encourage anyone to cough up the money to subscribe (a Columbia Journalism Review editor called it “a general-interest publication that is not generally interesting” and added that “great design will not trump lackluster content”). In the inaugural version, there were a couple of features that were worth reading, but they didn’t add much to similar stories that have appeared elsewhere for free. And a surprising amount of what appeared in the app — once you got past all the videos, most of which were devoted to advertising, and the interactive Sudoku and crossword puzzles — was run-of-the-mill news briefs that you might see in any newspaper such as USA Today.

If the content is ho-hum, what are users paying for?

Much of the pre-launch promotion of The Daily suggested that it was going to focus on the content in a way that many newspapers don’t, and that the million or so Rupert Murdoch was spending on the project indicated there would be a higher level of quality. But while the app is well designed and the articles and photos are nice to look at, there isn’t a whole lot on the content side that makes it any better than newspapers that can already be read for free — and whose links can be shared and read without the bizarre restrictions that The Daily has invented to try and convince people to pay for it.

David Weidner of WSJ’s MarketWatch said that “the pricing is right,” and that a year made more sense than 0 a year for the New York Times, and it’s true that the low price may get some to sign up — but the bigger question is, how many?

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