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Fotonauts: a smooth piece of the photography puzzle
February 23, 2009. Target Audience: Entrepreneur
As the creator of my own personal photography and blog website for over ten years that publishes new photographs on a weekly basis, I have experimented with many tools, none of which serve my purpose with ease.
Opportunity
Roughly 50 million semipro camera users (including dSLR and semipro hybrids, growing at a rapid pace) are just like me and cherish no less than 25 Billion photographs per year that they seek to publish and share. A nice big opportunity of which Fotonauts (now fotopedia) aims to capture a piece.
Complicated independent workflows
As one of those semipro users I keep my photographs in my file-system (where no vendor can lock my thousands of photographs in), use LightZone to edit, Rapidweaver for web authoring with embedded HTML photo libraries created by JetPhoto Studio. That whole process takes quite a few steps and is not for the faint at heart. Rapidweaver is not great at managing lots of photographs and JetPhoto lacks the web authoring capabilities to become more than a companion to a photographic workflow. That seems to be indicative of many of the technology solutions in the digital photography arena, that is littered with hundreds of fragmented software and services tools in which none provide full support for the complete photography workflow.
Smooth operator
Fotonauts is an improvement in terms of its ability to create an instant (while you work) and good looking web site with some powerful social media capabilities that promise to increase traffic to your photographs. It blends offline and online capabilities (in which it cleverly avoids recreating the strategically flawed asset management repositories of both Apple, Adobe and others) and live-to-the-web authoring with superb smoothness, even in this beta version.
Web pages created by fotonauts can incorporate photographs from offline repositories such as the file-system and proprietary iPhoto, Aperture and Lightroom photo databases, and fotonauts can also tap directly into online photo libraries at Yahoo! FlickR, Facebook and Google's Picasa. The technology promise is sound, as can be expected from former Apple developers.
More fragmentation
But Fotonauts does not erase the complicated digital photography puzzle that aims to reduce complexity for the semipros or professionals, nor does it seem to target amateurs that care less about optimizing traffic through viral capabilities. For semipros it does not contain any white-labeing options nor a way to make images available for sale. The uniform layout applied to all albums is slick but off-putting to photographers who want to create their own brand and separate themselves from the pack.
The fragmented state of the current photography technology reminds me of the state of MP3 music before Apple introduced a better player (mobile and desktop), a store and the availability of premium content all wrapped in a single compelling user experience. In photography that is an opportunity too large and too complicated for VCs to understand and can only be captured by an established company with the vision and the financial wherewithal to wrap its arms around the complete photography experience. It is time for the photography puzzle to become whole.
Until then, Fotonauts is a smooth and beautiful new piece.
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Photoshop CS4 finally innovates
October 03, 2008. Target Audience: Review
I still edit all my photographs (thousands) in LightZone, and have always vehemently made statements against Adobe Photoshop. Not because of the lack of photographic capabilities but primarily because of the proprietary language it forces you to understand before you can use Photoshop effectively.
Photoshop remains the “vi”- editor of photo editing, powerful yet very cumbersome to use. No secretary uses “vi” today, and the future of Photoshop is moving further and further away from the mass market Adobe should be trying to attract. Nothing new there.
But Photoshop CS4, after a long track record of rather meaningless innovation and UI revamps now includes some very nifty innovations worth looking at, as the videos demonstrate. Content aware scaling (from a company Adobe acquired last year), panoramas and the new 3D capabilities are very cool. So, if you’re interested in rudimentary 3D capabilities before you jump into Maya, check out Adobe’s website where the nifty new capabilities of Adobe’s Photoshop Extended are available for roughly $1,000. But, perhaps this time around, the premium price is worth it.
Credit where credit is due.
Beware of the platform that is not.
August 06, 2008. Target Audience: Macro | Venture
Capitalist
Let’s look at photography (my hobby), arguably the most important purchasing-driver of computers (after the ability to access the internet) by consumers. Media management (yes, on the desktop) remains more than a Billion dollar market opportunity.
Case in point: new announcements of Adobe Lightroom and Apple Aperture tout enhanced interoperability with third party plugins to manage and edit your photographs. Don’t you feel good about that warm open-source-like karma of interoperability?
I don’t. Both vendors have deployed their next trick to customer imprisonment. And plenty of uninformed customers will fall for it. Here is why you shouldn’t:
1/ There is no need for an additional platform for photo management.
Photo editing capabilites of both applications are mediocre (no layer based editing, no advanced local editing etc.) and their asset management capabilities are little more than a replica of file system capabilities (even photographic attributes such as exposure, aperture and other attributes are maintained by the file-system metadata today). So, except for making nice photo albums and calendars, why else would you slug thousands of photographs in a proprietary asset management format that is less reliable than the underlying file-system and requires seperate backup and archiving strategies to maintain.
2/ Plugins have worked for years on file-system based photographs.
The announcement of the interoperability with plugins is really old news as those third party applications have been working with file-system based photographs for years. This is a platform on top of a platform, designed to milk more money out of customers and locks them into a proprietary technology stack. A prison with the windows open is still a prison.
3/ The operating system needs-to and will evolve faster.
The pace of meaningful innovation of the Personal Computer OS is deplorable. Microsoft has not made the PC operating system significantly smarter over the last ten years and that has opened the window of opportunity for Apple to surpass Microsoft in usability (rather than functionality). The ability to easily create and manage user-generated content such as, Photography and Video, has now become important adoption drivers to the platform, OS-vendors have yet to respond to. Photographic capabilities should be built-in (not priced-on). These days the unique media experience of the platform is the differentiation that sells the computer (since they all do internet quite well).
As a consumer, buying into seperate photography management siloes will cost you significant time and money (as the former CEO of a photo software company, researching the alternatives, I tried). My advice is to wait until an agile vendor steps up and turns media management into a core competency of the computing experience.
In the words of Ray Lane (partner at KPCB and former COO of Oracle) who once said customers are better off skipping some steps of innovation (in his case to skip client-server for three-tier internet architecture), I have just presented you with my reasoning to skip-over Adobe Lightroom and Apple Aperture. Not because I don’t like some of its functionality, but because it is strategically a dead-end street.
The next evolution of media management will soon eradicate the old one and deliver lasting differentiation to the vendor that owns it and provides a much, much better media experience to the consumer.
I am planning on having something to do with that.
The (technology) language is the problem
April 02, 2008. Target Audience: Entrepreneur
We communicate with each other using a common language and we obviously become more effective when we all understand that language. However, technology complicates our lives as each piece of technology we interact with requires us to learn a new (proprietary) language; a set of rules, technology grammar and a unique user-interface experience.
Think about it, when Larry King on national TV stumbles over his own URL (yes, language) and messes up http, semicolon and slash (or was it backslash), I can't help but think about the hell we put users through to use the internet. Only if you understand that language do you get to benefit from its capabilities. That's like forcing anyone that wants to vacation in Mexico to speak Spanish first. The Mexican tourist industry would grind to a halt.
It gets worse, for example, to make photographs look better, Photoshop (and now with Photoshop Express) and many other photo-editing applications deploy a language that requires users to understand the intricacies of color and light and apply that language in the right order.
Here is a synopsis of the skill level my mother-in-law would need to master in order to make her photographs look better: first increase the dynamic range using a histogram, then use curves to change the tonal values to your liking, apply the right white balance and improve saturation and vibrance. Indeed, what I just described is the introduction of yet another language to solve a pretty mundane problem.
To create a web page, we introduce yet another language, a compilation of HTML, Perl, Ajax and Flash usually contained within a desktop product with its own proprietary language. To write a book we wrestle with 90% of Microsoft Word's functionality and language we seldom use, trying to figure out how to create a table of contents. In Excel we use another language consisting of non-intuitive formulas (like sum() ) to derive values from other cells. Should I go on?
So why is it that we seem to get away with it - or are we? For one, lots of people make money understanding a computing language that fewer others do. Web designers don't always create better design, but they understand the language of design, and can implement it. So, web designers don't want you to know there are better ways to do this. Adobe is probably not in a hurry to remove the language and erode its premium market, it could have created much more democratization in the website creation process. Many times have designers, with corporate marketeers in tow, abjected the use of Rapidweaver, a tool that attempts to democratize web design (this site is built with it).
But we are fooling ourselves. The democratization of the internet requires that we make technology more accessible and easier to understand and implement. Only then will it reach real mass adoption.
We could easily build technology that figures out how to make the majority of images look better, or design a web page by drawing it - rather than programming, or have Word make recommendations for a table of contents when it discovers one.
The iPhone is a great example of how packaging existing technologies in a different way, can make people feel that they don't need to learn a new language to communicate with it. My 3 year old daughter uses it. Each of the individual technologies in the iPhone had been around for a while, Apple "just" packaged it so the language became intuitive.
But Apple is not the only vendor that can remove the computing language from the equation, others just need to pay attention to it.
So when you design products, pay attention to the removal of the language, fewer yet intuitive options - rather than more. After all, for thousands of years, we ourselves, have communicated in many other ways than verbal, the majority of our communication remains behavioral.
Innovation has become the art of packaging a flawless user experience, rather than a race to add features. The latter quickly becomes commoditized anyway.
Aperture 2.0: nice but unnecessary
February 12, 2008. Target Audience: Review
By Georges van Hoegaerden
Apple has just released Aperture 2.0 today. A nice product to manage your photographs has gotten even nicer. But -- there should not be a need for Aperture.
Digital asset management, which is the predominant function of applications like Aperture and Adobe Lightroom, should not need to exist, especially not if you are Apple. If Steve Jobs were to take his own media hub strategy serious, advanced asset management capabilities should be available right in the file-system, as a function of the OS. Asset management for photographs is why people buy computers today, so why still does a separate application need to deal with our most precious assets. Incremental revenues perhaps?
Today's proprietary photo management systems eat disk space like nothing else. Non-destructive editing is supported by making superfluous copies of originals (especially when using an external editor). The derivatives are usually many times larger in size than their originals (especially when stored in TIFF or PSD), which forces you to stock up on hard disk space. I will keep using LightZone as my main photo editor and save precious disk space by leaving my photographs right where they are. Can't wait till the operating system innovates and supports photographs natively.
Apple has just released Aperture 2.0 today. A nice product to manage your photographs has gotten even nicer. But -- there should not be a need for Aperture.
Digital asset management, which is the predominant function of applications like Aperture and Adobe Lightroom, should not need to exist, especially not if you are Apple. If Steve Jobs were to take his own media hub strategy serious, advanced asset management capabilities should be available right in the file-system, as a function of the OS. Asset management for photographs is why people buy computers today, so why still does a separate application need to deal with our most precious assets. Incremental revenues perhaps?
Today's proprietary photo management systems eat disk space like nothing else. Non-destructive editing is supported by making superfluous copies of originals (especially when using an external editor). The derivatives are usually many times larger in size than their originals (especially when stored in TIFF or PSD), which forces you to stock up on hard disk space. I will keep using LightZone as my main photo editor and save precious disk space by leaving my photographs right where they are. Can't wait till the operating system innovates and supports photographs natively.
Fleeting assets of the imaging Puffer Fish
February 07, 2008. Target Audience: Corporate
By Georges van Hoegaerden
The Puffer Fish of the imaging market, as described in my previous blog have large volumes of fleeting image assets. Yes, dear Wall-street analyst, they may have been experiencing double-digit growth temporarily but we believe that originates from non-organic growth and growth attributable to the incorporation of that non-organic supply into the global brand, in Getty-Images' case for example. If you keep buying stock photography companies you delight existing buyers with an ever increasing supply, but the novelty of that supply wears off real fast. In the end that apparent growth comes at a high cost. So witnessed by the most recent disappointing earnings reports.
Jupiter-images is literally pursueing an image super-store strategy, a copy of Getty-Images' strategy. They too have been buying stock companies. Stock companies strike deals with photographers to create a good looking selection. Yet most images have a value that is completely photographer agnostic. The value is in the photograph, not the photographer. So, a super-store of images by definition contains a small amount of sellable images.
But the real interesting fact about the imaging industry (and many related to it) is that all images have fleeting value, especially after they have been sold for the first time. Photography is the ultimate Long Tail market, with a very, very long tail and a tiny body. A great reason why any player with a "premium" imaging strategy is relegated to selling to very small and concentrated set of buyers.
Not unlike the music industry where we are used to buying music collections on CDs, a large part of the stock photography market still sells collections of photographs to artificially increase the number of images sold and the average sales price (ASP) per image. As a result, investors may think the ASP is somewhat stable and predictable and the value of the super-store may not be as grim as it seems. But Super-stores will never contain enough image variations to meet Long Tail demand. As a result, commissioned photography is still going strong.
Most photographers that produce sellable images still sell their images offline and commissioned. The ones that do sell online, literally use a total of hundreds of photo-sites today to tap into a Long Tail demand. All these factors are hardly evidence that Getty Images is indeed meeting the needs of the photography market.
On a side note: MacNN reported this week that Adobe has halted its stock photo library, perhaps it is getting ready to buy Getty-Images? I think they are smarter than that.
The Puffer Fish of the imaging market, as described in my previous blog have large volumes of fleeting image assets. Yes, dear Wall-street analyst, they may have been experiencing double-digit growth temporarily but we believe that originates from non-organic growth and growth attributable to the incorporation of that non-organic supply into the global brand, in Getty-Images' case for example. If you keep buying stock photography companies you delight existing buyers with an ever increasing supply, but the novelty of that supply wears off real fast. In the end that apparent growth comes at a high cost. So witnessed by the most recent disappointing earnings reports.
Jupiter-images is literally pursueing an image super-store strategy, a copy of Getty-Images' strategy. They too have been buying stock companies. Stock companies strike deals with photographers to create a good looking selection. Yet most images have a value that is completely photographer agnostic. The value is in the photograph, not the photographer. So, a super-store of images by definition contains a small amount of sellable images.
But the real interesting fact about the imaging industry (and many related to it) is that all images have fleeting value, especially after they have been sold for the first time. Photography is the ultimate Long Tail market, with a very, very long tail and a tiny body. A great reason why any player with a "premium" imaging strategy is relegated to selling to very small and concentrated set of buyers.
Not unlike the music industry where we are used to buying music collections on CDs, a large part of the stock photography market still sells collections of photographs to artificially increase the number of images sold and the average sales price (ASP) per image. As a result, investors may think the ASP is somewhat stable and predictable and the value of the super-store may not be as grim as it seems. But Super-stores will never contain enough image variations to meet Long Tail demand. As a result, commissioned photography is still going strong.
Most photographers that produce sellable images still sell their images offline and commissioned. The ones that do sell online, literally use a total of hundreds of photo-sites today to tap into a Long Tail demand. All these factors are hardly evidence that Getty Images is indeed meeting the needs of the photography market.
On a side note: MacNN reported this week that Adobe has halted its stock photo library, perhaps it is getting ready to buy Getty-Images? I think they are smarter than that.
Image catalogs in peril
Two weeks ago Digital Railroad (a private digital photo aggregator, funded by Venrock and Morgenthaler) announced it was restructuring, cutting half of its employees and repositioning the company into a photo marketplace. Today Getty Images (GYI) is said to be looking for a buyer at around $1.5B, after its stock price is unable to recover for more than two years. And Corbis, well -- Corbis is being kept afloat by Bill Gates. Swallowing stock photography companies as fast as it can is Jupiter Images' attempt to boost its potential acquisition price, a strategy that didn't work so well for Getty Images. So, why are these companies not growing organically while the dSLR market that produces those images is growing 60% YTY and GMV of the image market is north of $22B.
Here is my take: the imaging markets consists of demi-cartels that produce "premium" supply that does not meet the requirements of an ever growing and changing market of buyers. No longer is the size of the buyer's market dictated by agencies nor is the new seller's market defined by the old definition of pro-photographers. As a result sell side content does not find enough buyers and the only way to make money is to make sellers believe that if their work is good enough, it will sell.....nice promise. Out of desperation most photographers post their images on multiple websites to get maximum visibility, a true testament of an inefficient market.
Getty Images is really a hybrid business, it has about 3,000 photographers on staff and does editorial projects for its main customers and in armored trucks if it needs to, providing news worthy photography on location. The side-business of Getty is the stock photography business which yields ever declining average sales prices for royalty free and rights managed photography. So, in essence, Getty Images was trying to become a "record" company with its own supply while on the side playing the independent party with a transparent image store; i.e. the "free-market" supply is competing with Getty's core business model. Over the years, many photographers have complained of unfair practices that gives better treatment to Getty's images than to the supply from individual photographers.
The Digital Photography market is in the same state as the music industry (albeit condensed in time) , premium supply doesn't turn out to be premium, demand has changed and the "record" companies in this space have no other option but to erode their premier status business model. I was right three years ago, let that be noted.
As for Digital Railroad, I doubt that they'll develop the macro-economic strategies that determine the success of any real "free-market" marketplace at this point. It would take a sizable investment in technology to turn a super-store into a "free-market". Adobe is rumored to be working on an image marketplace, but here too, the devil is in the details.
We don't need another Amazon.com of the photography business but a real free-market in which YOU the photographer and buyer make decisions on what transactions you want to engage in.
The new photo-editing era, a me-too service
September 18, 2007. Target Audience: Entrepreneur
By Georges van Hoegaerden
Photo-editing today is still an art form, a specialized and necessary art - and "endured" by prosumers. The great photography you see hanging on walls, on websites or in magazines, all have been edited digitally. Not necessarily to create some outrageous creative effect but because not a single camera accurately captures what your eyes see. Not since the invention of photography in 1870.
Camera vendors promise better results when their customers purchase a more expensive dSLR (digital Single Lens Reflex) camera, a better lens, a solid tripod, a new filter, and, while we’re selling: a new photo bag. Yet, none of those products do anything to change the fundamental difference between what your eyes see and what the camera produces. With a healthy growth of more than 60% worldwide in dSLR sales (according to new 2007 numbers from CIPA), most camera vendors are not in a hurry to out-innovate themselves as their current stance is feeding their business so well. So, the problem remains, camera output is far from ideal.
So today, the great results photographers strive for can really only be achieved through editing, reproducing what you tried to capture. That editing today happens primarily on the desktop (less than 10% of the whole photography market edits online) and by digital SLR users with a great sense of quality and aesthetics. Products are plentiful, such as Adobe Photoshop, Adobe Lightroom, Apple Aperture and my favorite: LightZone. Yet none of those products completely hide photographic complexity to its new users; the massive numbers of dSLR buyers that just want to create great photographs.
Photo-editing should work like a car, simply put the key in the ignition and drive (without having to worry about how the engine and the transmission works). The editing tool of the future should embed the photographic knowledge and make decisions or recommendations for you, rather than requiring its users to become proficient in the minutiae of color and light. Just like a car, photo editing should be able to go where others have gone before, enriching the experience of new users on a continuous basis. New editing techniques should be sharable through a language we all understand, a photograph. In short: edit "like-Mike" and me-too editing is born.
I believe photo-editing will move away from what it is today, a basket full of technology tools to a service through which the sharing of editing techniques will enable the new "language" of photo-editing. That dramatically simplified language will subsequently enable editing for the long-tail of the photography market, the massive market of point-and-shooters. New technologies such as Pixenate, Picnik, Adobe Photoshop Express already rush to deliver a new basket of tools for the consumer market. And many others will follow.
Today, plenty of opportunities remain in the prosumer editing space in which no vendor has amassed even close to 30% penetration. New editing capabilities are bound to drive the marketplace in which monetization of photographs and, eventually a free-market for photography can flourish.
What's left for the innovative camera vendor is to build a proprietary imaging pipeline that dramatically reduces the need to edit. With 90% of dSLR vendors using the same imaging pipeline (behind the sensor) the time is right to change the way a camera captures data before it reaches the sensor. In the same way your eyes do very smart tricks before light hits the retina.
Photo-editing today is still an art form, a specialized and necessary art - and "endured" by prosumers. The great photography you see hanging on walls, on websites or in magazines, all have been edited digitally. Not necessarily to create some outrageous creative effect but because not a single camera accurately captures what your eyes see. Not since the invention of photography in 1870.
Camera vendors promise better results when their customers purchase a more expensive dSLR (digital Single Lens Reflex) camera, a better lens, a solid tripod, a new filter, and, while we’re selling: a new photo bag. Yet, none of those products do anything to change the fundamental difference between what your eyes see and what the camera produces. With a healthy growth of more than 60% worldwide in dSLR sales (according to new 2007 numbers from CIPA), most camera vendors are not in a hurry to out-innovate themselves as their current stance is feeding their business so well. So, the problem remains, camera output is far from ideal.
So today, the great results photographers strive for can really only be achieved through editing, reproducing what you tried to capture. That editing today happens primarily on the desktop (less than 10% of the whole photography market edits online) and by digital SLR users with a great sense of quality and aesthetics. Products are plentiful, such as Adobe Photoshop, Adobe Lightroom, Apple Aperture and my favorite: LightZone. Yet none of those products completely hide photographic complexity to its new users; the massive numbers of dSLR buyers that just want to create great photographs.
Photo-editing should work like a car, simply put the key in the ignition and drive (without having to worry about how the engine and the transmission works). The editing tool of the future should embed the photographic knowledge and make decisions or recommendations for you, rather than requiring its users to become proficient in the minutiae of color and light. Just like a car, photo editing should be able to go where others have gone before, enriching the experience of new users on a continuous basis. New editing techniques should be sharable through a language we all understand, a photograph. In short: edit "like-Mike" and me-too editing is born.
I believe photo-editing will move away from what it is today, a basket full of technology tools to a service through which the sharing of editing techniques will enable the new "language" of photo-editing. That dramatically simplified language will subsequently enable editing for the long-tail of the photography market, the massive market of point-and-shooters. New technologies such as Pixenate, Picnik, Adobe Photoshop Express already rush to deliver a new basket of tools for the consumer market. And many others will follow.
Today, plenty of opportunities remain in the prosumer editing space in which no vendor has amassed even close to 30% penetration. New editing capabilities are bound to drive the marketplace in which monetization of photographs and, eventually a free-market for photography can flourish.
What's left for the innovative camera vendor is to build a proprietary imaging pipeline that dramatically reduces the need to edit. With 90% of dSLR vendors using the same imaging pipeline (behind the sensor) the time is right to change the way a camera captures data before it reaches the sensor. In the same way your eyes do very smart tricks before light hits the retina.
In search of the Economist VC
June 15, 2005. Target Audience: Entrepreneur
| Venture
Capitalist
By Georges van Hoegaerden
Free market principles are over 400 years old when the Dutch started selling flowers using a manual auctioning system. eBay has done a masterful job of bringing this age old success to the internet in selling person-to-person goods. The benefit of eBay is macro-economic not technology (or user 'friendliness'). That may be the reason why it barely escaped the (2-3) veto at Benchmark Capital. The success of free-market principles can be extended to many verticals and it remains a big surprise to me that eBay has not delved into other verticals using these hard earned principles.
Recently, a new job site TheLadders where I posted my resume (for research purposes on marketplaces), raised capital with a new approach to job search. Instead of charging recruiters it charges the job seeker (specifically the ones above $100K/year salary) a price for access to the premium jobs on the site. A nice concept but how do we know that instead of trusting the applicant, we can now trust the recruiters. Are these posts for real. How are recruiters held accountable. How do I know if my personal data is not abused? As NY attorney general Eliot Spitzer declares: "For a market to be truly free and efficient and have the full confidence of its participants two things are required: integrity and transparency". Why would I trust a job site that does not tell me what transactions are committed. Would I be drawn to eBay if I did not know what products really go for?
Free market principles will change the record industry, new players like Apple have implemented the first phase of a free-market for music. Without truly recognizing it, the record labels are participating in a movement in which the stars are no longer produced by labels, but stars are produced by people. But Apple needed the labels to draw the participants into its marketplace first.
Open-source represents another form of free market principles. Virtually unlimited software development supply is matched with the diverse appetite for the Linux operating system. Why are we still entrusting the publishing of books to the demi-cartel of the book publisher. You can publish books in Audible on iTunes and the software is ready today to publish Adobe's PDF format (yes, in iTunes). What stops Apple from becoming the media hub where free market principles apply to any data type and buyers can tap into the Pareto and Long Tail supply simultaneously.
There are some real hurdles. Hurdles that require capital and domain expertise and VC's to fund them. But we need a different VC, not the technology nut that wants to send a new rocket into space, but one that understands the power of history and evolution.
Free market principles are over 400 years old when the Dutch started selling flowers using a manual auctioning system. eBay has done a masterful job of bringing this age old success to the internet in selling person-to-person goods. The benefit of eBay is macro-economic not technology (or user 'friendliness'). That may be the reason why it barely escaped the (2-3) veto at Benchmark Capital. The success of free-market principles can be extended to many verticals and it remains a big surprise to me that eBay has not delved into other verticals using these hard earned principles.
Recently, a new job site TheLadders where I posted my resume (for research purposes on marketplaces), raised capital with a new approach to job search. Instead of charging recruiters it charges the job seeker (specifically the ones above $100K/year salary) a price for access to the premium jobs on the site. A nice concept but how do we know that instead of trusting the applicant, we can now trust the recruiters. Are these posts for real. How are recruiters held accountable. How do I know if my personal data is not abused? As NY attorney general Eliot Spitzer declares: "For a market to be truly free and efficient and have the full confidence of its participants two things are required: integrity and transparency". Why would I trust a job site that does not tell me what transactions are committed. Would I be drawn to eBay if I did not know what products really go for?
Free market principles will change the record industry, new players like Apple have implemented the first phase of a free-market for music. Without truly recognizing it, the record labels are participating in a movement in which the stars are no longer produced by labels, but stars are produced by people. But Apple needed the labels to draw the participants into its marketplace first.
Open-source represents another form of free market principles. Virtually unlimited software development supply is matched with the diverse appetite for the Linux operating system. Why are we still entrusting the publishing of books to the demi-cartel of the book publisher. You can publish books in Audible on iTunes and the software is ready today to publish Adobe's PDF format (yes, in iTunes). What stops Apple from becoming the media hub where free market principles apply to any data type and buyers can tap into the Pareto and Long Tail supply simultaneously.
There are some real hurdles. Hurdles that require capital and domain expertise and VC's to fund them. But we need a different VC, not the technology nut that wants to send a new rocket into space, but one that understands the power of history and evolution.
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