How Apple Killed an iTunes Competitor 143
An anonymous reader writes "Ed Bott recounts the story of Lala.com, an innovative online music service that reached the top of Google search rankings for consumers seeking music. Their prices were frequently better than the prices on iTunes, and they partnered with Google for the search giant's Music Beta. Lala's founder, Bill Nguyen, decided the time was ripe to sell, entertaining offers from both Google and Nokia. Unfortunately, Nokia's offer was poor, and Google tried to lowball Nguyen. Apple, however, was not so foolish. Correctly identifying a threat to its growing music empire, Steve Jobs offered $80 million for the company, and Nguyen accepted. 'The ultimate irony in this story is that quite a few notable members of the Lala-to-Apple team followed Bill through the door and onward to his next venture. They left millions in options at a the $196.48 exercise price they had from the 2009 sale/retention bonuses. Some of those same engineers returned to Apple in the highly covered [Color Labs acquisition] rumor that 20+ engineers went to Apple for $7M. Apple obtained the same employees for pennies on the dollar. This time with even more experience and startup life under their belt. Paying twice was genius.'"
And yet.... (Score:1, Insightful)
I still go out of my way to give my business to Amazon or any other legal alternative to avoid doing business with apple whenever possible.
Really not sure what it was they did to piss me off (probably a huge pile of small things over the years) but man I just do not like them.
Re:And yet.... (Score:5, Insightful)
Don't you forget that Apple played a huge role in making non-DRM protected music from majors available through online stores in the first place?
First majors started to make unprotected music available through competitors so Apple coudn't control the prices and then they made a bold move and made DRM go away from iTunes for the price of some songs being slightly more expensive than the others.
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wasn't amazon selling non-drm music for years before apple?
and then apple had the nerve to charge you $.30 per song to undrm it?
That's what he was saying (Score:5, Informative)
wasn't amazon selling non-drm music for years before apple?
About a year.
It was the music companies last ditch attempt to break free from Apple.
It failed so finally music companies allowed Apple to sell DRM free music (which was never under Apple's control, it was up to the labels which is why Amazon got to do so a year earlier).
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Yep, it was up to the labels. emusic was always drm free for example.
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That was already stated in the grandparent to your post.)
Comment removed (Score:4, Interesting)
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An epic rant you have there, but there's a lot to agree with. All three of these have been known to buy a good idea, just to put it into the trash can, in an attempt to chill out a market segment that they want to control. Sometimes a few good features might find themselves into the codestreams of a project, more often than not, it's: go away kid, ya bother me. Here's some candy, now get outta here.
Is it anticompetitive? In certainty, and it's business-as-usual and a seemingly accepted tactic that skirts Ta
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Honestly I don't know WTH is going on with Apple not being investigated for iTunes since they pretty much fucking own the PMP market (last numbers I saw had it at over 90%) and almost no business will ever reach 100%.
Because a few factors (1) Having a monopoly is not the only criteria to getting investigated. (2) Abusing a monopoly (ie MS) will get you investigated. Unlike MS, Apple did not go out of their way to harm competitors through their partners (like telling OEMs their prices would rise if they installed Netscape). Apple simply doesn't care if you buy your music from Amazon or Google. They set up their music service because easy access to music would sell their MP3 players. And guess what? Convenience sells
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Don't get me wrong I think ALL of these anti-competitive lock in horseshit needs to go DIAF
x Do It After Fudge?
x Dial a fone?
x Days Inside A Fly?
V Die in a fire?
x Desperately Inside A French?
x Dancing in American Farms?
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amazon DRM free first? impossible. they didn't even have a music store yet.
http://arstechnica.com/uncategorized/2007/06/emi-says-drm-free-music-is-selling-well/ [arstechnica.com]
Although the iTunes Store was the first online store through which EMI sold its DRM-free tracks, Amazon recently said that it will also be selling DRM-free EMI songs through its newly-announced music store later this year
"apple had the nerve to charge"
no. "price increases by the record labels, which were made possible by Apple's capitulation."
http:// [cnet.com]
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Amazon was DRM free first of the major online retailers. There may have been some DRM free offerings at itunes previously, but checking each song is not practical. I only started buying music online when the entire catalogue was DRM free. That's why I only started buying music online when Amazon went DRM free... since I started there, I've stayed there.
Prior to buying music online I just pirated it, because buying it was not a real option.
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amazon DRM free first? impossible. they didn't even have a music store yet.
Amazon MP3 Store launched in August 2007, DRM free.
Sorry to disrupt your little Apple World with facts.
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last I checked April comes before August.. and where did you get August?
http://techcrunch.com/2007/04/02/emi-apple-are-announcing-sale-of-non-drm-music/ [techcrunch.com]
April 2, 2007: The day DRM died.
Amazon was the first to bag the 4 majors.. in 2008
http://en.wikipedia.org/wiki/Amazon_MP3 [wikipedia.org]
Launched in public beta on September 25, 2007,[1] in January 2008 it became the first music store to sell music without digital rights management (DRM) from the four major music labels (EMI, Universal, Warner Music, and Sony BMG), as well
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Facts are: amazon was doing it before Apple.
Why it was like that, is pure speculation.
And the way I stuff works, the need to "sync" no way to read stuff you wrote to your own device, no file system access and what not, is oh so in line with DRM approach and yet hard to blame on major labels this time.
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Facts are: amazon was doing it before Apple.
Your facts are wrong. From Wikipedia [wikipedia.org]:
On April 2, 2007, Steve Jobs and EMI announced DRM-free music for EMI's complete music library for a 30 premium above the standard price. This began in May 2007.
Amazon MP3 is an online music store owned and operated by Amazon.com. Launched in public beta on September 25, 2007,[1] in January 2008 it became the first music store to sell music without digital rights management (DRM) from the four major music labels (EMI, Universal, Warner Music, and Sony BMG) . . .
Apple had DRM free music from EMI about six months before Amazon but Amazon was able to get agreement from all four major companies before Apple.
And the way I stuff works, the need to "sync" no way to read stuff you wrote to your own device, no file system access and what not, is oh so in line with DRM approach and yet hard to blame on major labels this time.
Maybe there are other reasons why Apple chose this methodology as opposed to making the file transfer method manual. Reducing the complexity would be one bonus for consumers. They don't have to worry about which files need to be synced or where the files should be. The software takes care of it as soon as the consumer connec
Re:And yet.... (Score:4, Informative)
wasn't amazon selling non-drm music for years before apple?
No, Apple were first with EMI. The rest of the big 4 held back from apple, so amazon were the first to have all their catalog unlocked.
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and then apple had the nerve to charge you $.30 per song to undrm it?
Erm, first of all, they charged you $.30 per song to upgrade to a higher quality version that happened to be DRM free.
But let's pretend for a moment that they did - who ever offered an upgrade to DRM free music - or video, or programs; free or paid? Who but Apple ever gave their customers that? Or for a higher quality version of the media? Who?
Actually, others who dropped DRM, dropped the right to play the media you already paid for.
Re: And yet.... (Score:2)
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Yep, and actually they did even more than that, Apple had the first unprotected music legally available too –they got EMI to make the switch. The rest of the then big 4 then decided to use it as a bargaining chip.
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I still go out of my way to give my business to Amazon or any other legal alternative to avoid doing business with apple whenever possible.
Really not sure what it was they did to piss me off (probably a huge pile of small things over the years) but man I just do not like them.
It was only apple that gave use MP3 players and downloadable music and touchscreen phones and tablets, so you should hate them. What about the 32 megabyte Diamond Rio? Yes other MP3 players existed, but Apple made them popular and simple and stopped the music industry from claiming MP3 players were designed to steal music. Then after years of napster and limewire, apple finally gave us a legit way to download music cheaply. Then after years of awful windows mobile phones and Palm insisting touchscreens
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And you are surely a legend in your own mind.
and they paved the way for spotify (Score:5, Insightful)
if we have learned one thing with IBM and Microsoft is that you can't stop technological and cultural change
subscription music is here to stay and apple can't do anything about it
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ultimately subscription music costs more to the end user and pays the content producer less. Then there's all the music not available through sub
Re:and they paved the way for spotify (Score:5, Insightful)
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Re:and they paved the way for spotify (Score:4, Interesting)
So the point still stands. For a lot of bands or artists, if you actually want them to see any money you're far better off going to a show or buying some merchandise. Otherwise it's not exactly easy to tell if someone is signed to a label that isn't completely shafting them.
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Actually, through iTunes, at least some artists may get a LOT more than through regular CD sales...
http://www.techdirt.com/articles/20110404/12211913771/record-labels-may-owe-artists-close-to-2-billion-lawsuits-ramp-up-with-rick-james-lead.shtml [techdirt.com]
Basically, some stupid lawyer for labels [as it's not like they used the contract written up by the artist's lawyer] included a MUCH higher royalty for licensing music vs the sale of the same music. And the labels have been broadcasting that you only get a license t
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Re:and they paved the way for spotify (Score:5, Informative)
For every track played on spotify, the "label" gets $.0017. Buying through iTunes is vastly more beneficial to content producers.
OK... but what happens when the track is in your playlist, and you listen to it every day on a subscription service, for 2 years (assume about once a day); in other words 365 x 2 = 730 times spread out over 2 years?
OK, discounted ~5%/Year = 0.0137%/Day , the present value of that stream of revenue for the label would be:
( $0.0017 / 0.000137)*(1-1/(1+0.000137)^730) = $1.18
And despite them having gotten $1.24 from you worth $1.18 today..... you still don't own the sound track. You have to continue the subscription, if you want to keep hearing it :)
So... the question becomes... what happens, if you keep listening to the track once a day one third of the days of the rest of your life? Assuming you are age 30, and live until age 70, that's 4870 listens, or $0.017 * 4870 = $82.79
Which is worth approximately ( $0.0017 / 3 / 0.0000102669)*(1-1/(1+0.0000102669)^4870) = $2.69
In today's dollars, and $2.69 is a heck of a lot more money for the label than $0.70, hell, it's over 3 times as much.
For you to subscribe to the service, and listen to your music through that, as long as they get their little .17 cents every time :)
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Which is worth approximately ( $0.0017 / 3 / 0.0000102669)*(1-1/(1+0.0000102669)^4870) = $2.69
Or rather, 5% at 365 days a year = of the 14610 days, that's actually 0.0001 per interval, and there are 14610 intervals, (so the above is actually an underestimate, of the worth to the label, of you subscribing) -- but the story is still the same, it's still more profitable to the label if you subscribe for 2 years, and then it's potentially several times as profitable, if you keep subsc
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Actually it doesn't matter if you listen to one song of the label 100 times, or 100 songs of the label 1 time each. The label will get the same money. However if you have to buy the songs, you'll only buy those which you intend to listen to repeatedly.
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However if you have to buy the songs, you'll only buy those which you intend to listen to repeatedly.
Whether you buy a song you won't necessarily listen to repeatedly -- does depend on how well your curiosity about the song is satisfied by the 30 second preview, or what other means you might have available to "try out" a song you don't know about, to decide if you might like to listen to it repeatedly. :)
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I don't know about you, but I definitely won't buy a song just to find out if I like it.
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Only true for artists who aren't their own label (Score:2)
Increasingly musicians (and movie makers, and writers) are realizing that they can cut the middle man out entirely, become their own label, and deal with Apple/Amazon/etc. directly. It's a lot of freaking work, but it gives artists total control, and have longer and more profitable careers than record labels that want to churn flash-in-pan artists for maximum profit before going on to the Next Big Thing.
And Apple and Amazon, for all the bitching people do about them, are the ones whose domination of Interne
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It's a ton of freaking work. The reason there *are* middlemen in the first place is becasue most artists are simply not skilled (or don't have the time) to write, produce and record albums AND handle all the business and sales crap. Middleman services like TuneCore or Reverbnation have replaced an active Agent or A&R guy in a lot of cases, but it's still a middleman, in a way. Even if you're a fulltime musician, sometimes there just aren't enough hours in a day to do everything without cutting corner
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But they did a hell of a job in slowing it down.
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as much as I hate to say it there was no such model before apple
its one of the few things they actually did do themselves (unlike drop down menus, icons or rounded rectangles)
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..what can kill and what can heal them
Jobs can't be healed
Way to prove Apple isn't Jobs.
Love the headline (Score:1)
I like that this same story was on macrumors as "how Steve jobs acquires a company" and on /. It's how apple KILLED a competitor. Dramatic much?
Re: Love the headline (Score:2)
Technically /. was more accurate in that Jobs bought it almost exclusively to keep iTunes as the predominate selling theme of iDevices. I mean it is possibly the biggest selling feature after the social hierachy implications.
Lala was not the threat (Score:5, Insightful)
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Given that, as you say, Google tried to low-ball them... why is Apple getting the blame here? We're not exactly talking about YouTube - Google could easily have coughed up more than 80 million if they really thought the business was worth spending the money on.
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Google probably didn't think they were worth it. While Google's Play Music isn't the greatest by any means, yet, it is growing constantly and getting better and better. Google probably looked at how Lala would have helped them but really didn't find it would help them enough to pay $80 million or something for it.
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Google probably didn't think they were worth it.
The thing that would have killed iTunes wasn't even worth $80M to Google? Okay, is it just me, or doest the argument not make a lot of sense?
Re:Lala was not the threat (Score:5, Informative)
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[quote]There is not a service that Google does want to give away to sell advertising.[/quote]
Google Apps would like a word with you. Same with Google Play, Google Wallet, and Google Drive. Oh, and Google Calendar and Blogger. And Android. And Chrome.
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Usage statistics are a form of data collection to use in ad targeting.
Wallet is the most glaring example. What advertising data could you want more than what people are buying, and when? Blogger is indexable, and works with account targeted ads based on interest. Chrome pushes html standards that allow more dynamic delivery of Google's products in general -- they even explicitly state that in the Chrome mission statement.
fermion is 100% correct. Google is a business first.
Disappointing to read (Score:2)
It's disappointing how the Microsoft-pioneered "buy up your competitors before they can afford to buy you" technique has become standard practice for Apple. Up until the day before they were purchased, so many people I knew were using Lala on a daily basis. And why wouldn't you use it? Lala had a great catalog, came up high on Google results, offered full songs for preview, and worked in any web browser. And this was all 2-3 years before Spotify was available in the US.
When Apple bought them, I naturally as
Re:Disappointing to read (Score:5, Informative)
Re:Disappointing to read (Score:5, Insightful)
Oh, child, read some history. That had been going on for at least 100 years before Microsoft existed.
Actually a competitor sold out ... (Score:5, Informative)
It seems biased to blame it all on Apple.
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Why would they add that restrictions? Adding conditions could have reduced the profits for Lala's shareholders, by reducing the selling price.
Re:Actually a competitor sold out ... (Score:4, Interesting)
Indeed. It sounds to me like the lesson to be learned here is that you don't throw out lowball offers when you have an opportunity to disrupt the market. Google made a miscalculation. Spend generously when you need to, in order to reap greater value down the line.
Now, whether that is ultimately important in light of Android's undisputed success and Apple's seeming disinterest in continuing to innovate with iOS, is another story. iOS has basically stagnated, and that's coming from someone who has stayed with Apple since the original iPhone. I've never purchased an Android device and even I can tell that it is a more flexible and capable platform.
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Google made a miscalculation.
That's only true if they actually had a chance to disrupt the market. HP and Autonomy might teach you the opposite lesson.
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Can you give specific examples of how exactly Android is such from a user's (not developer's) perspective, i.e., things a typical Android user can do that an iOS user can not?
Can share docs from iOS devices ... (Score:2)
How about being able to copy files from PC to phone, from phone to phone, either through cable or standard bluetooth communication? I'm at a presentation showing a PDF to customers and I can't *give* it to them. Yes, I can put it on the internet and give them an URL, but even giving them the URL is painful on mobile!
In the past I loaded an arbitrary PDF into Apple's iBooks app. Its a technical document I wanted to have available even when offline. I just launched the iBooks app, I tap on the collections button to switch from books to PDFs, I tap on the share button and one of my options is email.
I just opened a spreadsheet using Apple's Numbers app. The spreadsheet is stored on iCloud and I access it both from computers and iOS devices. While on an iPad I tapped on the tools icon. One of my options under "share" is
Can silence incoming calls at night with iOS ... (Score:2)
Schedule volume changes. My notifications turn off at night, but not my ringer, so important phone calls get through. I don't do a thing; it's automatic! This is important because I would forget to turn it back on in the morning.
Apple iOS also offers this. Its called "Do Not Disturb". You can define exceptions to let through, you can optionally let through an immediate second call from the same number, etc.
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They apparently made no provisions in the contract with Apple to continue the service and protect existing Lala customers. They could have required that these existing customers continue to be provided the Lala service for a reasonable timeframe but apparently they did not. Apple was free to shut it down in what looks like 5 months.
Is that really so simple? Does selling a company (with paying customers) free me of all my contractual obligations to these customers? If Apple sold iTunes to Google, Google would be free to shut everything down in 5 months, killing everyone's music collections??
Their customers should have sued them for everything they got in that deal...
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They apparently made no provisions in the contract with Apple to continue the service and protect existing Lala customers. They could have required that these existing customers continue to be provided the Lala service for a reasonable timeframe but apparently they did not. Apple was free to shut it down in what looks like 5 months.
Is that really so simple? Does selling a company (with paying customers) free me of all my contractual obligations to these customers?
I would expect that the contractual obligations would transfer with the ownership. Perhaps Lala's EULA/contract with customers always allowed for termination of the service at any time.
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Is that really so simple? Does selling a company (with paying customers) free me of all my contractual obligations to these customers? If Apple sold iTunes to Google, Google would be free to shut everything down in 5 months, killing everyone's music collections??
Their customers should have sued them for everything they got in that deal...
Apple could shut down everything, without prior notice. And it wouldn't be a violation of its contractual obligations, since the users agreed to it (the TOS).
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Depends on the nature of the contracts with customers. A company buying another must abide with any previous agreements. That's one thing SCO forgot; old Santa Cruz was only an Unix agent for Novell and did not own the copyrights. If Apple was able to shutdown the service, the Lala agreement may have had an exit option with their customers.
Given the history of Apple they have bought companies before for singular purposes and shutdown the company otherwise. For example Fingerworks made mice and keyboards
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To me, at least, it is quite unclear who bears what responsibility to whom (outside of those responsibilities which are clearly delineated
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It seems biased to blame it *all* on Apple.
Trying to wrap this in a "free market" huggy-blanket is not just naive, it's dishonest.
Good thing the GP did not do so. Did you miss the last line of the GP's post? I inserted it above and added emphasis to the word "all" for you.
Lala approached Apple, offering itself ... (Score:5, Insightful)
That is not Apple hunting down and killing a competitor. That is a company shopping itself around and playing potential buyers off of each other to maximize the sale price.
My point is that the loss of the Lala service is not entirely Apple's fault. Lala's management deserves to share in that responsibility. They chose a buyer unlikely to continue the service. They apparently did not require a commitment from Apple to continue the service for current customers for a reasonable timeframe.
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This.
And, Apple did incorporate the matching technology from Lala into iTunes as iTunes Match.
It seems to me like Lala was *sold* to Apple as people, IP, and customers for a service that Apple had(s) no interest in. Cutting the leads that didn't go into the iTunes store doesn't seem like that would be worth the time or effort, let alone the $80 million as Google was bound to just replace Lala with other search results.
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Oh, come on, please - that's intellectual dishonesty.
Yes, apple paid for it, but they certainly killed lala, and it was certainly part of the contract. They didn't want Google to get that power, and they didn't want an iTunes competitor. Trying to wrap this in a "free market" huggy-blanket is not just naive, it's dishonest.
You seemed to have missed this in the article:
Google was worried, they moved fast. They presented Nguyen with an offer for the company. Previously, Bill told M&A from Google what it would take to acquire the company. Instead of meeting his demands they decided (via a lowball offer) to see if Nguyen was desperate or bluffing.
Nguyen went to Google before Apple. Google had a chance but decided to play games by lowballing. They lost out. It's not like Apple shut Google out of a chance to buy Lala.
80 Million Isn't Exactly Death (Score:5, Insightful)
The company I own is worth approximately that much, and if ever anyone offered me 80 million for it, the only part of me that would remain would be the cloud of dust dissipating where I had my last presence within its walls.
I didn't start my business because I'm "passionate" about what I do or because I "love" my work. I started it to make money, and for no other reason.
One of the biggest mistakes so-called entrepreneurs make is getting emotionally attached to their work - and I see it happen all the time in my VC club. I've been an angel for a number of startups, but we almost always turn down the ones where the pitch is not much more than how "passionate" the people are about their companies.
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Coming from a guy who runs a small business that I'm passionate about, and who is having trouble making it go how I'd like, I can't blame you for that stance.
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I didn't start my business because I'm "passionate" about what I do or because I "love" my work. I started it to make money, and for no other reason.
One of the biggest mistakes so-called entrepreneurs make is getting emotionally attached to their work - and I see it happen all the time in my VC club. I've been an angel for a number of startups, but we almost always turn down the ones where the pitch is not much more than how "passionate" the people are about their companies.
Could not disagree more. Everything that is wrong with VC and Capitalism in general in embodied in your reply IMO. The reason Apple did so well is because Steve Jobs was passionate about making the stuff he wanted to make. Sure, he was not _averse_ to making mountains of cash, but if he was purely pursuing profits (such as Steve Balmer, or any other shareholder beholden jobbing manager) he would not have been driven to make his perfect phone / tablet. It's all about what your intrinsic motivation is... if i
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Mr. Wonderful, is that you?
(This is a reference to http://en.wikipedia.org/wiki/Kevin_O'Leary_(entrepreneur).) [wikipedia.org]
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That is exactly the approach people should be taking in business, it is great if you enjoy what you do but ultimately a business is exists to make money otherwise you are a charity not a business.
It ain't black and white. There is all kinds of room for grey in the middle.
Personally I would rather the world were filled with millions of minor-league businesses of passion that were only sufficiently profitable to support their employees and founders in moderately prosperous lifestyles than the one we have now dominated by a relatively few amoral megacorps with no passion for anything besides money and a lottery mentality of management and investors.
Note, the OP is part of a VC club. Venture capital i
Re: all about the business of business (Score:3)
.
Yep. When the MBAs move in to the management structure ( whether it's part of the "growing" of a small company as capital comes into it from investors or if it's because the founder's sons or daughters finished college, got their MBA and came home to roost in their pre-ordained family job ), the presence of those only interested in the business of business instead of the actual business of the company leads to the deterioration of that company's performance. My loc
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Personally I would rather the world were filled with millions of minor-league businesses of passion that were only sufficiently profitable to support their employees and founders in moderately prosperous lifestyles than the one we have now dominated by a relatively few amoral megacorps with no passion for anything besides money and a lottery mentality of management and investors.
Look at the lives of people who follow their passion and pursue art, music, modelling, acting, sports, etc, it's a much bigger lottery than the business world. Not everybody's passions line up with what consumers demand. Most programmers I know didn't grow up dreaming of working on software to manage waste water treatment or databases to track shipments, they wanted to create video games.
Individuals benefit when they do something they are passionate about, society benefits when people do something that is
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Look at the lives of people who follow their passion and pursue art, music, modelling, acting, sports, etc, it's a much bigger lottery than the business world.
Huh? Success as a CEO is measured in money. Success as an artist is not. The only way you can say that a profession in the arts is a lottery is if you take the MBA perspective that success is measured in money.
Individuals benefit when they do something they are passionate about, society benefits when people do something that is wanted.
That's just begging the question. Society benefits from artistic and philosophical endeavors all of the time. Look at the original Star Trek - a labor of love (and ego) that was a financial failure but inspired all kinds of scientific and engineering progress, as well as social progress (first on
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Huh? Success as a CEO is measured in money. Success as an artist is not. The only way you can say that a profession in the arts is a lottery is if you take the MBA perspective that success is measured in money.
The most basic measure of success is survival. Most people survive by doing something other than what they are passionate about. That doesn't mean you can't snowboard, create a web comic, or work on public access, but counting on that as your primary means to live is a lotto at best.
That's just begging the question. Society benefits from artistic and philosophical endeavors all of the time. Look at the original Star Trek - a labor of love (and ego) that was a financial failure but inspired all kinds of scientific and engineering progress, as well as social progress (first on-screen interracial kiss, etc).
Star Trek was released to try and make a buck. For a couple people it was a labor of love, for most it was a paycheck.
My statement isn't reserved just for the arts. The disconnect between individual passion and public demand
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The most basic measure of success is survival.
Like I said, you've redefined lottery. Basic survival is no more a lottery than anything else in life. It is a ridiculously utilitarian definition.
Star Trek was released to try and make a buck. For a couple people it was a labor of love, for most it was a paycheck.
Like I said the first time, your argument is circular. Just because some people working on a project are not passionate about it does not redefine the entire project as utilitarian.
You also fundamentally misunderstand the purpose of google's 20% self-directed time. It isn't about a trade-off between "public demand" or what the company "needs" versus "passion
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Like I said, you've redefined lottery. Basic survival is no more a lottery than anything else in life. It is a ridiculously utilitarian definition.
Going back to your original idea of a million passion based business, the reason it doesn't happen is because it's not sustainable. If people can't survive it's not going to happen.
To quote Office Space:
Peter Gibbons: Our high school guidance counselor used to ask us what you'd do if you had a million dollars and you didn't have to work. And invariably what you'd say was supposed to be your career. So, if you wanted to fix old cars then you're supposed to be an auto mechanic...
Michael Bolton: No, you're
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If people can't survive it's not going to happen.
At this point I am forced to believe that your vocabulary limits your abilty to understand the concepts involved. You keep hammering on utilitarian definitions that are ultimately circular - "it doesn't happen because it can't happen" is just another form of begging the question.
This:
The results aren't something easily quantifiable and the failure rate is high.
Contradicts this:
high risk ventures with no tangible expectation of return.
Easily quantifiable does not equal tangible. I see you tried to pick words that were almost synonyms but even if they were synonyms they are contradicted by your examples of Google News and Goolge Taskbar, bo
Re:80 Million Isn't Exactly Death (Score:4, Insightful)
But the world definitely would NOT be a better place if all businesses were run like you suggest. Many of the achievements of the modern world required hard nosed business decisions based on purely on profit and without those people the world would grind to a crawl.
That logic is weak sauce all around. The best you can say using that line of reasoning is that the world would not exist the way it does today if not for the decisions that made it that way. There is no way you can say the world would be better or worse using that logic. For all you know, those hard-nosed business decisions killed off a line of research that would have produced cold fusion in the 1900s that would have averted all the world wars and made today a utopia of essentially zero-cost unlimited energy.
Re: (Score:2)
as a customer I would not give a fart about someone that is in it to just sell out and crap on my interest
Lala was better than iTunes. (Score:5, Interesting)
I remember using Lala, mostly at work. At the time it was much nicer to use than iTunes and Pandora.
I remember the day when I found out that Apple was shutting down Lala, and I was very disappointed, because Apple is very insistent that people only use technology in the way that Apple wants them to. I do generally like Apple's interface design, but Apple is very insistent that its way is the best, and they have been insistent even in the cases that they've been wrong.
Lala had then what Amazon, Google, and Apple have only recently added, which is the ability to basically mirror your library from their website, and when Apple bought the service it was a big loss. I think Google or Amazon would have actually built on the service, but Apple just killed it, and that sucked.
But LaLa was going anyway... (Score:2)
I remember the day when I found out that Apple was shutting down Lala, and I was very disappointed
Reading the article though it seemed you were doomed to disappointment no matter what. LaLa was not making money as was going to close down. I'm not even sure any of the other companies buying LaLa would have meant it would stay open.
Lala had then what Amazon, Google, and Apple have only recently added, which is the ability to basically mirror your library from their website, and when Apple bought the service
I doubt they would have stayed around long anyway (Score:4, Informative)
I used Lala quite a bit, and in all honesty, I didn't expect it to stick around even before Apple bought the company. You could preview an entire track for free, then pay ten cents for unlimited listens with no ads and no subscription fees. With payment processing fees, servers, storage, and bandwidth, I doubt Lala was making anything, much less paying the record companies. Heck, you would have had to buy six hundred songs a year just to match Spotify's cheapest subscription. Twelve or eighteen hundred to match Zune or Rhapsody. Oh, and did I mention Lala would even scan your existing music library and then let you stream all your songs from their servers for free? Yeah, that's a sustainable business model.
I'm sure Lala was nothing but acquision-bait, like Youtube and Instagram. Offer a good service for way below cost, get a huge following, find somebody with deep pockets to buy your "community" and retire to a tropical island.
In other news.... (Score:2)
...video killed the radio star.
Re: (Score:2)
Another Casuality of the Lala Acquisition: WOXY (Score:4, Informative)
Re: (Score:2)
Souldn't that read "How Nguyen killed Lala"? (Score:2)
He put it up for sale. Apple made and offer and he accepted. End of story.
Totally misleading title ... (Score:2)
I've still never used iTunes for anything. (Score:2)
Re: (Score:2)
30 grand is a small mistake in serious engineering, not a news story, they are saving money to have a reasonable and somewhat proven concept handed to them
Title is misleading (Score:5, Insightful)
I am no Apple fanboys, but the title "Apple kills competitor" is misleading.
Lala.com was for sale. Apple bought it fair and square.
If only Google wasn't so foolish to play lowball, Google would have a powerful franchise right now to out-compete Apple on its own turf.
Bott is apparently still on his anti-Apple jihad (Score:1)
I guess it just goes to show his shallowness.