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Sony Acquires Gracenote

Sony Corp. of America announced this week that it plans to acquire Gracenote, an InfoCommerce Group Models of Excellence winner, for a price of $260 million. Sony plans to operate Gracenote as a separate business unit; and Gracenote's senior management team will remain in place.

Gracenote is a provider of embedded technology, enriched content, and data services for digital entertainment solutions in the Internet, consumer electronics, mobile and automotive markets. According to a press release announcing the deal, Sony plans to use the acquisition to further develop its digital content, service and device initiatives.

Sony was already a customer of Gracenote. Other Gracenote customers include Apple iTunes, Yahoo! Music Jukebox, Panasonic, Philips and Samsung. So Gracenote already had a strong presence in its space.

Yet, with the backing of a prominent company like Sony, Gracenote is positioned to grow even more rapidly than it would have on its own. Essentially, this deal signifies how valuable Gracenote's offerings are and will continue to be in the electronics marketplace.

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Local Directory for Instructors Launches in Seattle

A new local directory has launched in the Seattle area. TeachStreet is a free service that helps connect people with more than 25,000 teachers, coaches and other instructors in the area. Users can search TeachStreet to find instructors for classes such as yoga and beer making. Searches can be targeted through a variety of criteria including neighborhood and age range.

To collect contact information for the TeachStreet database, TeachStreet has enlisted the help of a team of contractors to manually collect the data--which includes names, addresses, phone numbers, email addresses and pricing information. The contractors comb sources such as Google, Craigslist, school catalogs and other web sites to find the information.

TeachStreet recently announced a $2.25 million venture round of funding. But the company plans to use online advertising to grow revenues. It will offer instructors the opportunity to purchase sponsored links and will eventually launch premium services (such as payment processing to instructors).

This is an interesting idea, but it will only be successful if contractors can collect enough information--and the most accurate information--to make it a robust offering. Still, it would be helpful if the contractors didn't have to do it alone. And they might not have to.

The company's founder is hoping that individual instructors will want to take an active role in creating and updating their profiles. If that happens, it will certainly help TeachStreet. Then, accuracy can be more confidently ensured, and the profiles will provide more value for users and the profiled instructors as well.

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Major Publishers Launch Online Ad Network

Digital marketing company 24/7 Real Media Inc. this week announced its partnership with four prominent publishers to launch an online business-to-business advertising network. BBN is the joint creation of Cygnus Business Media, Nielsen Business Media, Reed Business and McGraw-Hill.

Included in the network are web sites of equally prominent publications, such as Construction Equipment, Adweek, Aviation Week & Defense Technology and CPA Technology Advisor. The network attracts almost 10 million monthly unique users (60 percent of the audience is small business owners and decision-makers). BBN includes more than 200 web properties.

Now including BBN, 24/7 Real Media's offerings are comprised of more than 1,500 sites. 24/7 Real Media's network attracts about 150 unique viewers each month and it offers targeting solutions such as lifecycle management, search retargeting, geo-demographic, content, behavioral, retargeting and custom.

BBN will use Open AdStream, 24/7 Real Media's proprietary ad serving and campaign management platform to the targeting and delivery of ads to web sites.

Online ad networks certainly aren't anything new or revolutionary these days. But this particular offering could still make a huge impact on online advertisers who target the b-to-b space and want to align with these major publishing brands.

However, one interesting note is that this isn't the first time Reed has participated in an ad network. In fact, it had its own. The publisher launched the Reed Partner Network last year, and the network included both Reed Business and non-Reed web sites. BBN could actually have been considered a competitor to Reed's own network. As a result, the Reed folks say that the Reed Partner Network will cease to operate as a separate unit by the end of the month.

Exposure is key in advertising. But too much isn't a good thing.

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Amateur Hour

I'm just back from the Buying & Selling E-Content conference in Scottsdale. I had been particularly looking forward to hearing author Andrew Keen discuss the ideas he lays out in his book, Cult of the Amateur. I admit to being disappointed by his dialectic.

Keen's core argument (or at least what I think is his core argument - he's a man of many ideas who isn't particularly good at bringing them all together in an organized way) is that "curated content," content that has been selected and vetted by knowing professionals in publishing and media organizations, is valuable. Nobody can argue with that. But Keen goes on to suggest that giving voice to anyone who wants one via social media tools has been a giant step backward for both culture and society.

As a publisher, I expected to find myself cheering his view of things, yet I walked away from his presentation feeling quite unsettled. His argument didn't sit well with me, but I was unsure why.

On reflection, I think what bothers me is that curation is not just about selecting the best; it's also (at least in the media world) inherently about keeping out everything else. The historical success of the media has come from its ability to achieve monopolies - if not business monopolies, at least audience monopolies. With relatively few media outlets and few other cost-effective ways to reach large audiences, great power resulted, power that was not always wielded fairly or wisely. Even more significantly, media concentration meant the vast majority of people would never - by design - get needed exposure or be able make their voices heard.

I've written several books on obscure topics related to data publishing. Because of their limited appeal, no book publisher was ever interested in them. So I took the tough road of self-publishing and managed over the years to sell several thousand copies of these books. These books have helped society, albeit in a very limited way, by teaching associations and corporations how to publish more useful and effective directories, guides and databases. Yet Andrew Keen would seem to ascribe no societal value to my thoughts and insights because I couldn't get past the established gatekeepers. I could make the same point about this blog. It reaches several thousand people, and more than a few readers have told me they find it useful and insightful. Yet prior to social media, I wouldn't have this audience because no trade publisher would ever publish the specialized and eclectic thoughts I choose to discuss. Disintermediation has been very, very good to me!

What Andrew Keen is railing against is not really the rise of amateurs, but rather the decline in power of the professionals. Curated content now has to compete harder in the marketplace of ideas. It now also has to compete for attention. It used to be that those who could get past the media gatekeepers (e.g. Andrew Keen) were assured of doing well financially, sometimes achieving status and celebrity to boot. Now it's a much tougher game with fewer guarantees.

I've previously described what I call the five stages of Internet migration in the publishing world: denial, incredulity, anger, adoption and embrace. Most information publishers I know are well into stage four or beyond. Andrew Keen seems mired in stage three.

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Dow Jones Acquires Generate; Creates New Business Unit

Dow Jones and Company today announced its acquisition of Generate Inc., which enables business intelligence through a platform that combines real-time company intelligence with integrated relationship-mapping technology. Terms of the deal were not disclosed.

Generate's solution is geared toward executives to help them find opportunities with future business partners. Dow Jones plans to offer this solution to its financial services and business professional customers. According to a press release announcing the deal, the Generate acquisition further solidifies Dow Jones' "Power the Intelligent Enterprise" strategy, which calls for delivering information to a company's most information-intensive job function in the time and manner in which it is needed. Generate will be housed under a new Dow Jones business unit, Business & Relationship Intelligence, which is part of the company's Enterprise Media Group.

Generate's patented extraction and aggregation technology takes company and executive data from the Internet and maps relationships among those people and organizations. It crawls more than 75 million domains and extracts information on more than 4 million companies and 6.4 million executives. The technology also mines in real-time for more than 100 trigger events, such as mergers and acquisitions, which would be of interest to a business audience. The company intelligence is integrated with relationship-mapping technology that enables users to detect competitive moves, identify prospects and make the most of their corporate and personal networks.

This marks Dow Jones' second enterprise business-related acquisition of 2008. The first was its March purchase of Dutch language news service Betten Financial News BV.

This acquisition should serve to make Dow Jones an even more powerful information provider. Customers today demand solutions that efficiently provide the information they need as well as intelligence that will help make that data work even better for them. Plain data is never enough--technology that makes it actionable is a must.

Generate's technology is especially interesting, however. As executives become much more aware of the power of networking relationships (through the increased popularity of such social networking sites as LinkedIn), they will undoubtedly welcome the opportunity to utilize such technology that will help them increase the value of those relationships. More good news for customers is that Dow Jones seems very committed to the development of its Business & Relationship Intelligence unit. Expect the company to continue to acquire businesses that will fit under this umbrella and add additional value for Dow Jones' customers.

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