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Here is the current network. In addition, I have created a temporal picture of the network -- October 2005 to January 2007 (the picture advances automatically after 2 seconds). As I have described before, platform providers like Google, Amazon, eBay and Yahoo occupy key positions in this ecosystem. The data for this network comes from programmableweb.com.
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Yahoo reported a 61% decline in earnings today. With Google continue to grow its user base and advertiser traffic, is Yahoo beginning to feel the negative impact of network effects? Wired magazine ran an interesting article (thanks to Robb Kopp for sharing this) that describes an opportunity that Yahoo had to acquire Google. In addition, the author details the many chances Yahoo blew due to its inability to strike the right deals and launch critical projects.
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Google announced a test project for embedding ads within video content. This should help it extract some value from its YouTube investment.
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 I just saw the video of Apple's CEO making a compelling presentation about the iPhone (Cisco is contesting the name). Prior to this event, the whole project was kept top secret for months. Steve Jobs mentioned during his presentation that they have filed for over 200 patents to protect it. Even the suppliers for the product are unknown. We know that Yahoo! is providing email services and Google is providing search services. Apple uses its own operating system software and for the rest of the product uses the ecosystem of content providers, device manufacturers, chip manufacturers and network operators. A key aspect of their ecosystem is that their control of what ultimately goes on the product and impacts the user experience. In fact, Cingular has made some changes to its infrastructure to accommodate some features that Apple wanted to include as part of its voice mail service. Unlike this, in the PC ecosystem, complementors use standards to interface their standalone components with core products and no one player "approves" what gets on the product.
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A recent article discusses a deal by content providers (Showtime, Nickelodeon and Starz) with Microsoft that will allow them to take their content from the Web to TV. As such there are ways to display Internet content on TV. However, this development will make that much easier. With Xbox and other chip technologies being developed by Microsoft, we must be able to see more content on TV. This development, along with YouTube's emergence, creates new opportunities for content providers, access providers, advertisers and technology companies. Content players want maximum exposure to viewers. Access providers wouldn't want to be left out of the equation. Interestingly, technology companies like MSFT are playing the role of a matchmaker.
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