Tech Hot Spot: Streaming Video Content

CMM February 19th, 2010

A really exciting technology area that’s starting to gain some major market validation is streaming video content. According to research from the TDG Group,  half of Netlfix customers with high speed internet are streaming the content on a television. Personally, my wife and I utilize Netflix streaming on our Roku and Playstation 3 all the time. The movie selection is a little weak, but the streaming content really carries its weight with television shows. We’ve watched entire series on Roku (as I type, we’re on episode 7 of season 4 Lost). We’ve talked about canceling cable, if it wasn’t for sporting events and HBO’s series (specifically Bored to Death, Empire Boardwalk , The Pacific, since Entourage has almost become unwatchable and HBO ended The Sopranos, Rome, Deadwood, John from Cincinnati every other show I loved). Now that HBO is introducing a streaming platform with HBOGO.com, we’re rethinking our cable subscription. Of course, HBOGO.com has to move to a subscription fee that doesn’t require a television contract, but surely they aren’t so dense as to goof that up.

I’m not sure where technology goes next with streaming content, but I think we have a convergence of traditional content and internet streaming in the not too distant future. Some how, entrepreneurs have to manage the dynamic environments of electronic devices (run for the hills, it’s the iPad) and streaming content. To top it off, we’ve got to build out the infrastructure to have the bandwidth to accomodate all of it. I’d expect a media mogul to attempt something like that, but the current generation is still trigger shy after Time Warner got slapped around with the AOL deal. Mind you, that parent owns HBO… so maybe we’re seeing some down road benefit of that catastrophe. Oh, and Google is also on the job (remember Google TiSP from 2007… yeah, it was a joke, but apparently they were thinking about connectivity to residential households).

If Netflix really wanted to put some pressure on the big media business, they should do a couple of things (in my not-so-humble opinion):

  • Provide a rotating streaming big ticket picture on a weekly basis
  • Provide the opportunity to stream weather and local media
  • Provide streaming of live sporting events
  • Build a library of musical performances

If we can keep technology and entrepreneurship on the tracks, we’ve got some real value-add developments coming. It takes a few years (late 90’s and early ’00’s) of stupid wasteful foolish risky ventures to help focus in on the viable opportunities. The show ponies are dieing off and the stallions are left behind. They may not get the attention of show ponies, but that’s because they’re stallions… they do –gasp– work. Our entrepreneurial communities aren’t dead, they’re focused on survival and committed to their concept. But enough of that, or I’ll start talking about the blasphemous and offensive fact that increasing government expenditure decreases small business growth and innovation.

Prep Thoughts for Southeast Venture Conference

CMM February 17th, 2010

Next week I’m taking a very brief (30 hours, to be exact) trip to Washington, DC for the Southeast Venture Conference. I’ve attended this meeting the last two years and was impressed both times by the speakers and the presenting companies. I really appreciate that my fund allows me to represent us at this opportunity (although, I’d also love to attend the annual NVCA meeting San Fransisco… but that’s not gonna happen).

I thought I’d write a few words about how I’ve prepared. I’ve looked over all the presenting companies and developed a short list of companies in our profile and/or that look attractive. I’ve reached out to most of those companies through emails or phone calls to make initial introductions. The way the conference is organized, their isn’t a real bullpen area where you can easily locate the companies. Plus, with so many potential investors in one place, it can be challenging to get the attention of folks. Even VCs get lost in the crowd when the crowd is other VCs. Same thing, if not more so, for entrepreneurs. I also plan to drop emails and calls to certain colleagues that tend to attend this event. It gives me an opportunity to catch-up with those folks, gaining valuable insight on how active they are and what areas they’re looking at.

After looking over the list of presenters, I noticed a few trends: lots of web-based platforms (i.e. accounts receivable, entertainment management, etc), lots of companies touting “cloud computing,” and a noticeably less “clean tech” companies. Make out of it what you will, but those are my observations. Also, here’s a good article on cloud computing that I stumbled across at Venture Beat.

Here’s some quick-and-dirty advice for presenting at one of these opportunities:

  • You only get 5 minutes, so focus on the material the audience cares about. Sorry engineers and technologists, that probably doesn’t include CAD sketches and technical analysis.
  • If you’re raising money, investors want to know– how will you make me money and how much money will you make me? Period. End of discussions. Please, no CAD sketches or technical analysis.
  • Do not read off the slides. In fact, use the slides for context and support, not as the foundation of the presentation. Your personality, passion, and speaking should be the foundation.
  • Investing is relationship driven, whether institutional or individual, so don’t forget to introduce and give context for your leadership team. But remember, you aren’t the product, so don’t act like it.
  • Want other advice than mine, then checkout this post from Guy Kawasaki… The guy is an authority on presentations. Don’t believe me, just watch the video below:

The Toyota Problem

CMM February 17th, 2010

As the owner of a Toyota Camry produced during the  recall time line, this issues hits a little close to home. When I purchased the vehicle, I stretched my budget to get this car because of the manufacturer’s reputation for quality, service, safety, and longevity of product. I’m a high mileage driver, frequently driving in bad weather conditions and along isolated and mountainside roadways. After driving an older car for 11 years, I wanted something that would be reliable and give me peace of mind. To date, I’ve always taken my care to a Toyota dealership to have it serviced. Frankly, part of what you purchase when paying for a Toyota is that reliability and peace of mind. I wanted to purchase a car that I could drive 250k miles and 15 years. That is the very reason that this current string of quality issues is a serious problem for the company.

Here’s a little laundry list of issues I’ve got with Toyota, most of them personal experience:

  • I was given weather proof mats with the purchase of my car, to be shipped to my address. Two years later, still no mats.
  • A few months after making the purchase and at 11,000 miles (1,000 miles over the 10,000 mile new purchase full warrant), the front bumper came unhitched from the wheel well. Mind you, this is cosmetic, but I expected the company to fix it. They did not, and quoted me a $800 price tag. Needless to say, I’ve learned to deal with it.
  • Servicing the vehicle with the dealership has historically been expensive. The first 30k miles brought on a a couple of $250+ routine services. Even the routine oil changes were expensive at $50+. Over the last six months, the price of an oil change has fallen to around $30, much closer to my expectations.
  • My little tray in the console between the front seats is stuck and won’t open. Apparently, a card of some type fell behind the latch, so I can’t get it open. Mostly cosmetic, but still very annoying.
  • The company has 12 vehicles listed with a recall. 12… Really? I think we can call that a systemic issue at this point.

It’s a little early to criticize the company for its handling of the issue. After all, lets be honest, this isn’t an exploding gas tank problem. According to statistics from the company, over 80% of Toyota’s vehicles are still on the road after 20 years. I couldn’t even find Toyota listed when I googled for top ten automobile recalls (here’s one example). At this point, my issues isn’t with the company having recalls. My issue is with how poorly the company is handling the recalls. Here’s how the company has responded:

I know the company is strong in its corporate culture, and maybe in Japan the brand carries enough strength to inspire confidence with consumers. But here in the US, we want to see executives stepping up to plate and taking responsibility for the problems. Failure to do just that it was drove many of us away from our own domestic car companies

Ultimately, I think Toyota is (hopefully) taking the right operational steps… but they are failing miserably in the PR department. I’ve almost reached my breaking point, between hearing about a new recall every morning on CNBC to listening to the talking heads opine about the issue in the evening. The company has to step up and reassure me as an existing customer. For me, that means some level of personal communication. It also means making a vehicle at an affordable price point that dominates in the quality and performance categories. Oh, and sending me my floor mats.

Movie List for 2010

CMM January 28th, 2010

So, much has been going on for the past few days, but in my late night writings I’ll stick to the really important stuff… what movies I’m looking forward to this year.

Clash of the Titans–Yes, I know it’s a remake, but the original was a favorite growing up as a boy. I remember watching it on TNT when spending the night at my Granny’s house. I recently asked/forced my wife to watch it and she made it through the whole movie, which is an accomplishment for her. I’m really hopeful that the remake is going to do it justice, and I think the special effects technology has reached the point of really giving us some cool scenes.

The Rum Diary–Hunter S. Thompson is someone that I’m fascinated with. His writing, his political views, his musical taste… all of it. Jonny Depp playing Hunter is even better (he played him in the film version of “Fear and Loathing in Las Vegas,” also). This is one of Thompson earlier books, before he got REALLY into the psychedelic drugs. It’s actually enjoyable without making excuses for the incredible talent hidden in sloppy jargon and syntax.

Jonah Hex--Two beautiful ideas meshed into a glorious product–comic book and western–in this post-confederate graphic novel. To boot, Megan Fox plays the gunslinging harlett and John Malovich plays the bad guy. Take your wife to this movie and you’ll probably lose move picking rights for a month… but it would be worth it.

The Wolfman–Also made my list in 2009, but release of the movie was delayed. This may be the movie I’m most excited about for 2010.  It’s another remake, but it looks fantastic. And the casting is incredible–Anthony Hopkins and Benetio Del Toro.

Tron Legacy-Combined with Clash of the Titans, 2010 is the year of movies from my childhood. If only Cloak and Dagger would make a return, but alas… The trailer looks awesome and the casting is true to the original. Also, the story sounds like a good way to explain the 30 years between the first and second movie. My only question, why make us wait so long?

Shutter Island–It’s hard for me to admit this, because I think DiCaprio is over rated, but this movie looks phenomenal. And after The Departed, I’m willing to accept that I may be wrong about DiCaprio. Murder, mystery, and Scorsese sounds too good to be true.

Robin Hood–I loved the original one, even with it’s cheesy Bryan Adams theme song, but this remake looks equally amazing. The casting is fantastic with Russell Crowe as the lead and Siene Miller as Maid Marrian (with a lot less emphasis on the maid portion than we’re used to). I get the feeling this will be a blockbuster budget action movie that will blur over some of the finer political points of the Robin Hood story… but I expect it will be so good that I’ll maybe forgive it. Did I mention Ridley Scott directs?

Honorable Mention: Alice in Wonderland looks like it will be beautiful in that Tim Burton kind of way; Iron Man 2 because RDJ was awesome in the first one and its hard to screw up a super hero movie with that solid of a lead; Toy Story 3 because they are that good, even for a kids movie; Harry Potter Part I of the Last Book and, yes, I’m glad they broke it into two movies.

Kiffin’s Exit and Where UT Football Goes Now

CMM January 13th, 2010

So, I’m ashamed to admit that I actually couldn’t sleep last night thinking about Lane Kiffin’s exit as coach at Tennessee. I’m not so self-centered as to not consider this in the grand scheme of things (my prayer’s go out for those affected by the Haitian earthquake), but I’ve grown up a Volunteer. Some of my earliest memories are watching UT football with my parents. To dissect this a little more, part of it’s my competitive nature and the hope I had for winning the SEC East next year, part of it was thinking about the train wreck of misguided team spirit on the campus (really… you set a mattress on fire?), and part of it was thinking about the alternatives. Something about my personality comes to life in a time of crisis; I love the intensity and velocity of navigating and managing a crisis.

Unfortunately, I don’t earn my living thinking about UT football… so I need to get this off my brain so I can be productive. Here’s a download of some things going through my head:

Thoughts on Kiffin’s Exit:

  • Let’s be honest… Kiffin’s career flourished at USC and his persona/identity is riddled with USC references (i.e. we adopted a “USC/West Coast” offense). I’d wager that inside his psyche, this was his dream job all along. The school has plenty of money, California loves big personalities, and he has a history with the school. I know its hard not to take it personal, but the guy made a career move. Ill timed and very inconsiderate, but he has wagered his entire career on making USC successful. He failed in the pros, he’s jumped ship on an SEC school after talking trash about most others, and now he’s inheriting a very bruised USC program. If he can’t make it work and quick, he will be reconciled to a tier 2 coach for the rest of his career. Particularly once his dad retires from football.
  • I’ve supported Kiffin from the start, but let’s just be honest, the guy has a mouth on him. I grew up seeing Tennessee football and their coaches as classy and confident, not mouthy and arrogant. I’m not sure Kiffin ever fit the Tennessee culture, as much as we tried/pretended he did. Good riddance.
  • While the fans are devastated by this, the real victims are the current players, including those enrolled for this season. They were sold loyalty, performance, and discipline from a team of coaches that turned on them in a moment of real need. We need leadership right now from the players. If they don’t step up, this team will have a very difficult time. We still have much of the same team that lost to the national champions by a blocked field goal… Much of that team is returning next year. I repeat, most of that team is returning next year.
  • Recruiting is going to take a serious hit… Frankly, I don’t see anyway we hold together a recruiting class that makes it into the top 10. Fortunately, a couple of our large recruiting holes (i.e. quarterback) are “locked in” barring transfer restrictions from NCAA.
  • The coaching cabinet is going to be cleared out… although I hope we hold on to some of them, specifically Lance Thompson and Kippy Brown (who has been named interim-head coach).
  • I’m not one for taking pot shots at people in leadership positions, but from a business and competitive economics environment, what was Mike Hamilton thinking providing a $800k buyout for a young up-and-comer like Lane Kiffin. I don’t remember the link or the specifics, but I think we had a $4M buyout to fire him in his first year, but he could leave us for $800k. You know we were paying about 80% of competitive salaries in the SEC, so you know there was some flight risk involved. You’ve got to create more protection than that.

Now that I’ve got that off my chest, let’s talk about where we go from here:

  • New head coach and recruiting coordinator… STAT! We need to analyze and make decisions on the current recruiting class. Now to be clear, I’m a big Kippy Brown fan and don’t mean to pass him up for head coach, but I’ve heard he isn’t interested. Some of the other coaches may be able to transition with a new coaching staff (can we keep lance Thompson, please?) and some of them need to find other homes. Either way, it needs to happen fast. As an aside, please stick with a pro-style or smash mount offensive strategy. Let’s not get gimmicky. Here are my three picks for head coach:
    • Will Muschamp–This guy is the heir apparent for Texas, so he won’t be cheap or easy to secure–he currently makes $900k + bonuses at Texas. The current coach, Mac Brown, has a contract through 2015, so maybe Muschacamp can be enticed away with an early opportunity to head coach. He’s a UGA graduate and worked at Auburn and LSU, so he knows the SEC. He’s currently the defensive guy at Texas, a school with a phenomenal recruiting and winning track record. He’s young and he’s fiery.
    • John Gruden–This guy is a little untested in SEC football, although he did work as a grad assistant at UT back in the mid-80’s. His recent stint as head coach of Tampa Bay brought a Super Bowl win and a couple of division titles, and he’s had mostly positive years. One thing that I think is a big selling point is that he has left a wake of successful assistant coaches during his time at Tampa, leading me to believe that he knows how to identity and develop talent– a critical skill for a college coach. His wife is a UT graduate and I’ve heard, although I can’t confirm, she was a cheerleader.
    • Kirby Smart– I know this is a LONG SHOT, but the current defensive coordinator at ‘Bama is a stud. He’s young, an awesome recruiter with experience all over the SEC, and worked Bama’s defense (with Saban, of course) into the monster that became the national champions. That defense destroyed Florida. I repeat, that defense destroyed Florida. He would be hard to get, seeing as he just turned down a lucrative offer from his alma-mater to be defensive coordinator at UGA, but the guys is a rising star. Also, making the career move from ‘Bama to the Vols would be a mini-version of Kiffin leaving for USC. All’s fair in love and war… and SEC football is war (thank you to my ‘Bama friends taking pot shots on my twitter and facebook accounts last night).

So, all is not lost Orange Nation. Maintain your composure, stay positive, and don’t riot on the campus (again). If you need a laugh, just remember that at least Lane Kiffin used a Trojan to screw Tennessee.

Back to work and… Go Vols!

Next »