the vc in me....

Personalized Storytelling: Monetizing User-Generated Content

As I expressed in a previous post, users are generating content more than ever - even teens are blogging (I believe the latest stat shows over 30% maintain blogs) - and of course all ages are posting photos and increasingly video and audio (e.g. podcasts).

There's no shortage of creation, hosting, management, and discovery tools/services for user-generated content but what's missing is the ability to monetize all this content and provide a meaningful end product for consumers that doesn't just sit in the digital ether.  It will be tough for advertising to work on a large scale for user-generated content as the advertiser doesn't know what content they are associated with - it will take time for advertisers or publishers to solve/get more comfortable with this content type.  This leaves a transaction model wide open - which I know well from my Snapfish days...

I noticed at Snapfish that our digital photo album books were a very hot seller as consumers  created an end product they know well - photo albums - but done in a  professional book-like manner and in minutes vs hours or days.

I'm thinking there is a twist on this model combining user-generated assets along with professional ("stock") content into tangible physical products (such as books and DVDs) that are personal yet very professional - and would command high margins given their high emotional value.  The disruptive changes in digital offset printing (you can now create a personalized professionally bound book for dollars vs a set up cost of $10k for each run) and cheap DVD burning make this very doable. 

The idea is to create personalized storybooks from user generated content (blog entries, photos, video, podcasts) that combine licensed content (I dare use the word "mash up") and sell the physical products to friends and family who care deeply about it.   The digital version of these "stories" would be offered free and help market the service virally.  The subjects of such books and DVDs should be important life events (reunions, tributes, births, weddings, eulogies, childrens books, etc) that some group of people would be willing to pay to memorialize in DVD or book form.  The digital story should be very easy to create with templates that blend professional content - the design rule should be "create a story in 5 minutes or less" - appealing to the masses.   I know there are several companies that have tried variations of this idea in the past and several in the space now - so far I haven't seen anything I've fallen for - but i'm still looking.

If you've got a similar idea or want to jump on this one with a great team, drop me a line...

Cool Vlogging Tool

Digital Video capture devices are certainly proliferating worldwide - mostly via digicams and mobile devices (such as my handy Treo 650).  Although the quality of most videos (and the skills of the videographer) are not up to par yet, I can see this wave begin to form on the horizon.

Some early startups made a go at video tools and hosting - but many didn't survive as the hosting model is hard to monetize by the "average joe" and there was a lack of devices, awareness, and broadband connectivity to consume the content. 

The world has changed and there are a bunch of websites to allow easy transfer up to the web - whether its for citizen journalism or sheer vanity (like in my case).   How about incorporating this into blogging?

Here's a cool little tool by a startup called Videoegg that integrates with typepad to allow "vlogging" (video blogging). 

I don't think we will see the same proliferation of user-generated videos as much as photos or text because it's a bit harder to create video (not just technically but also hard to create compelling content - I felt awkward taking a video of myself vs a photo as I had to figure out what to do in the video to kill time!) and also get it up on the web.  Nevertheless, VideoEgg is the best tool i've seen to make it really easy for the consumer - regardless of device or video format. 

We have a long way to go before everyone is a pro videographer (as you can see by the example below) - but keep your eye on this exciting user-generated content trend...

MMOWs: Massively Multiplayer Online Worlds

MMORPGs (Massively Multiplayer Online Role Playing Games) have been around for a while.  They are compelling because they mix gameplay,  and the social environment of hanging out in groups.   They have gained a lot of traction in Asia (especially China, Korea, and Japan) - where consumers have a strong need to express themselves freely given the societal constraints (and where other forms of entertainment are much more expensive) - and even a few have done well in the US (like EverQuest).   

I have seen several startups focused on the next trend - massively multiplayer worlds started for the sake of community and "hanging out" vs gameplay.  I believe this will become more of a permanent entertainment/communication habit on the internet - especially for young people.  The trends of increased bandwidth, social networking, addictive use of IM by teens (I have heard that teen buddy lists have over 100 people on them!), and more powerful computers to support 3D  worlds all play in its favor.    Examples of current worlds include Second Life, Habbo Hotel, and Gaiaonline. 

With the IM networks beginning to open up, entrepreneurs can create these online hangouts and get quick crowd formation by tapping into pre-existing buddy lists (one example is users customizing their "away" messages to "i'm hanging out in XYZ world - come join me").    The barriers to entry are somewhat higher than a typical website in terms of quality of the "world" (especially 3D), managing the many simultaneous users, and constantly evolving it (and allowing users to evolve it).  I like that it's a sticky application as users customize their identity and avatars and create a bunch of digital goods (e.g. house, pets, cars) that one values dearly.  It's also pretty viral as the instinct of the participants is to invite their friends in - what's a "hangout" without your friends?

I believe there will be more than one MMOW that wins out - kinda like a thriving universe - expanding and contracting with people's diverse interests and pop culture trends.  You don't need the same network effect as in ebay - you're there to hang out with interesting people - four maybe  just as good as 400.  For now, it will be tough to move across worlds as you need to re-create your digital identity as you travel from world to world - but perhaps there will be "open world standards" or "virtual teleportation" agreements in the future : )

From a business standpoint (and ability to invest in keeping the world fresh, cool, and cutting edge), critical mass will be important as I see this being driven primarily by advertising - mainly brand advertising as there is no "search intent" that will lead to action - the user is too busy chatting away and hanging out.  This will be a compelling means for brand advertisers to reach the elusive teen and youth generation who is not watching much TV or reading magazines.    There is also an interesting business model in buying selling goods via a "virtual economy" but that's difficult to monetize for the youth demo who doesn't have the bucks or payment means.

I expect a proliferation of worlds in the next 6-12 months and I look forward to helping the "world builders" make it happen!  Contact me if you have a great idea here...

Mobile Infrastructure to Make It Easy

The functionality, applications, and options available on mobile phones are rivaling that of the PC - especially in next generation Smart Phones.  The problem is that the screen size, input mechanisms, complexity of networks, and relatively slow network speeds make this a difficult "computer" to navigate and generally get things done efficiently. 

A practical example of this problem is  the digital photography experience on cameraphones - which remains far too difficult for the consumer to do more than simply snap a photo (how many photos are trapped on cameraphones? quite a few)  While at Snapfish, I could see an opportunity to make consumer photography on the mobile phone a lot easier - just snap a photo and hit one button to automatically put it on your PC and in the "cloud" for future access.  We're not there yet but I know several companies are attacking this - but it takes cooperation from the handset ecosystem as well as the carriers - which is a challenge...

Similarly, I've seen some interesting plays around making the entire mobile data experience easier - and also freeing the world of applications beyond the carrier "deck".  These companies are trying to make it seamless for the end user to get the right application at the right moment with the right context.  If you've got some neat ideas or a plan here, drop me a line ; )

Consumer Healthcare Search

There are a lot of forces driving consumer demand for better search of healthcare information.  Here's some examples:

- Consumers increasingly choosing and paying for their health plans

- Increased acceptance of alternate treatments - from acute to chronic conditions - but consumers don't understand the options

- Increasing awareness of "user-generated" reviews - finding out what other people like you think about treatment options

- demonstrated willingness to use multiple search sites to get answers

There are plenty of healthcare consumer content verticals but most are shallow.  Google or other search providers can give comprehensive results but lack relevance, organization, and trust.   This coupled with a booming healthcare/pharma ad market make it a great opportunity. 

Let me know if you have ideas and/or plans here!

User-Generated Content

Unless you've been asleep at the internet wheel over the past two years, you will notice an explosion of user-generated content - whether its reviews on products or services or amateur audio (e.g. podcasts) or video - or even singing.    I'm interested in all this and services that will help cull the best of the best and the best for the audience of one.  Creating, finding, consuming, and playing with all sorts of media.  Let me know what your great ideas and plans are in this area.