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Another Googler Goes to AOL: YouTube Boss Dave Eun Replaces Bill Wilson as Content Boss

Peter Kafka — Thu, 04 Feb 2010 19:46:44 +0000

Former Google sales boss Tim Armstrong has brought a slew of former colleagues with him to AOL, but this may be his highest-profile hire so far: Dave Eun, who has been in charge of content deals at Google and YouTube, will replace Bill Wilson, one of the last high-profile AOL guys from the pre-Armstrong era.

The deal to bring Eun on board was finalized last night, Armstrong told employees in an all-hands email (see below). It’s not a huge shock to see him leave–he’s done a lot of heavy lifting there already, and sources say that like many Google (GOOG) executives who have left recently, Eun felt he couldn’t move much higher in the company.

Eun used to have a role that paralleled Armstrong’s at Google: Make peace with traditional content companies. But instead of trying to sell them ads or negotiate search deals, Eun was supposed to hammer out deals to help get their content onto Google. Most recently, he was focused on getting TV networks and movie studios to put stuff on YouTube, which involved new ad-supported deals (see: Turner, ESPN, etc.) as well as the possibility of renting clips by the stream.

Wilson is a longtime AOL (AOL) guy who rose up the ranks and was pushing for the original content strategy that Armstrong embraced even before the last regime change. He seems to be leaving on better terms than other pre-Armstrong executives, as he’ll be staying with the company until May to manage the transition.

By leaving just as AOL has spun off on its own, Wilson is giving up a chance at some significant upside via low-priced stock options. But sources say Wilson doesn’t have another job lined up.

In an interview this afternoon, Armstrong says that Wilson approached him about leaving the company “several weeks ago”. When I asked him if Eun’s last role–developing partnerships with big media outlets–signaled a shift in AOL’s “roll your own–cheaply” strategy, he made a point of saying that’s not the case. Eun’s hire will simply “supercharge” AOL content plans, he said.

Nonetheless, Armstrong did allow that AOL has some significant content partnerships to announce in the coming months.

Here’s an interview I conducted with Eun late last year, focused on YouTube’s efforts to turn a profit and add new content:

[ See post to watch video ]

And here’s Armstrong’s note to the troops:

As you know, content is at the core of our strategy and we have broad aspirations in this space. We’re focused on scaling our content platforms, production and partnerships to offer quality, original content that will engage consumers and bring them–and their friends–back to our properties time and again.

The fact that we have such a strong foundation in the content space is due to the determination and dedication of Bill Wilson. He saw the opportunity presented by audience fragmentation on the Web and positioned AOL’s content offerings in a number of key verticals. Early in the new year, Bill told me that although he remains committed to the vision and strategy of AOL, he’s ready for a break.

After nine years with the company and after the significant changes we made this year moving from licensing content to becoming a principle in content, he wants to take a step back. Bill built a strong management team and laid the groundwork for the content strategy that we’re now pursuing. While I’m disappointed by his decision, I respect his intent and have asked him to work with me, not only to find his replacement but also to transition with that person to ensure that, as a company, we don’t miss a beat on the execution of our content strategy.

Bill is a talented executive and great person, and I’ll be working with him closely and supporting his transition. Bill cares about AOL, he cares about the content and the products, and he has worked incredibly hard to keep AOL on the media map.

I’m pleased to announce that David Eun will be coming on board in March to head up our content business. Some of you may remember David from his tenure at Time Warner where he helped to oversee AOL as Vice President, Operations, for the Media & Communications Group reporting to Don Logan.

David, who joins us now from YouTube and Google, has had a long career in offline and online content and is the person responsible for managing Google and YouTube’s content partnerships. David brings an impressive breadth of media experience to AOL at an exciting juncture as AOL forges a new future as a high-scale producer and partner in the content space. He will be based in New York.

Bill will be staying on until May 1 to help ensure a smooth transition with David, who begins work March 1.

You may wonder why this topic wasn’t raised during yesterday’s Q4 employee call. My preference is always to share this type of news with you in person, but the facts are that there were elements of this announcement that were not finalized until last night. This drove us to announce this news this morning–to our employees first.

As we have discussed, AOL is now in a phase of transition from playing defense to playing offense. As I said on the employee earnings call yesterday, AOL’s back in the game and we’re playing to win. We have a lot of work to do, but we’re going to do it. Please join me in welcoming David back to AOL and in thanking Bill for his dedication and leadership at AOL – TA

And here’s the release:

AOL NAMES DAVID EUN PRESIDENT OF AOL MEDIA AND STUDIOS

Eun Will Oversee All AOL Content, SEED.com and Studio Operations

New York, NY, February 4, 2010 – AOL Inc. (NYSE: AOL) today announced that David Eun will join the company as President of AOL Media and Studios, effective March 1. As AOL’s chief content executive, Eun will be responsible for the company’s more than 80 content sites, its new SEED.com publishing platform, as well as the newly acquired StudioNow video platform and AOL’s NYC and LA studios.

Eun will report to AOL Chairman and CEO Tim Armstrong and will be based in New York. He succeeds Bill Wilson, President, AOL Media, who will transition out of the role after nine years with AOL.

Until 2006, Eun helped to oversee AOL as Vice President, Operations for the Media & Communications Group at Time Warner Inc. In that role, he helped provide operational oversight and develop new businesses, particularly in digital distribution and broadband content and services, for the company’s AOL, Time Warner Cable and Time, Inc. divisions. Eun joins AOL from Google, where as Vice President, Strategic Partnerships, he was responsible for managing global content partnerships with Google and YouTube.

“David brings an impressive breadth of media experience to AOL at an exciting juncture for the company as we focus on scaling our content platforms, production and partnerships to offer quality, original content that will engage consumers and bring them–and their friends–back to our properties time and again. I’m delighted to welcome him back to AOL as we continue to pursue our strategy and mission in digital content and journalism,” Armstrong said.

“Bill Wilson has been a driving force for content at AOL and under his leadership the quantity and quality of our premium branded and niche offerings have expanded significantly. On behalf of AOL, I want to thank Bill for the energy and dedication he has brought to the role. Bill has been an outstanding leader at AOL,” Armstrong added.

“AOL has a unique opportunity to bring together its core strengths in the key areas of content and journalism, distribution, and advertising to engage its users, partners and advertisers in a way very few companies can. These three elements will be fundamental to success as the media and technology industries evolve and converge,” Eun said. ”And after nearly 15 years of seeing this convergence approach, I couldn’t be more excited to be returning to AOL to help Tim and his team capture that great promise.”

AOL is one of the largest producers of original content on the Web, with more than 80 official AOL and custom-built sites including more than 20 which rank in the top five in their U.S. comScore Media Metrix category. Approximately 80 percent of AOL’s content is originally produced by a growing team of staff and freelance journalists, including nine Pulitzer Prize Winners. AOL also produces more than 50 original video productions a month at state-of-the-art studios in New York and Los Angeles as well as through a network of freelance video producers.

SEED.com, AOL’s premium content management system, assigns, buys and distributes work for all of AOL’s properties. StudioNow, which AOL acquired in January, allows the company to integrate a fully functional video creation platform into SEED and leverage a national network of creative professionals to develop and produce quality video in a way that is rapid, efficient and scalable.

Before joining Time Warner, Eun was a partner at Arts Alliance, a venture capital firm focusing on digital media, information technology and business services. He started his career in media at NBC, where he led some of NBC’s first cross-media initiatives involving television programming, the Internet, and retail consumer products. He is a former management consultant with Bain & Co., and attended Harvard Law School and Harvard College, where he graduated magna cum laude in government.

Judge: RealDVD Antitrust Case Real Stupid

John Paczkowski — Mon, 11 Jan 2010 19:02:33 +0000

The federal judge presiding over the RealNetworks legal battle with Hollywood has confirmed what even the company’s attorneys have likely known all along: There was no chance whatsoever the company would prevail in its claims against the film industry, and the plight in which RealNetworks (RNWK) now finds itself is entirely its own doing.

On Friday, Judge Marilyn Patel, who in 2000 issued the injunction that shut Napster down, dismissed Real’s antitrust claims against Disney (DIS) and other movie studios over their alleged collusion to block RealDVD, the company’s “legal” DVD ripper.

The studios and the DVD Copy Control Association, she found, were well within their rights to band together to prevent what they believed to be illegal copying of their content. Real was foolish to think otherwise, and its claim that it has suffered significant losses because of its inability to sell a product of questionable legality is, in a word, ludicrous.

Which is not to say that consumers should not have the right to copy and back up films they have legally purchased, just that the courts have never looked favorably on those who claim that right through a technology that bypasses DVD copy protection and consequently violates the Digital Millennium Copyright Act.

“Real’s purported injury stems from its own decision to manufacture and traffic in a device that is almost certainly illegal under the DMCA,” Patel wrote. “In the circumstances of this case, there is no allegation Real could make that would give it antitrust standing.”

Court Opinion Dismissing Realnetworks Antitrust Case

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The New York Times Explains the Ad Market: Banks Bail, and So Does Hollywood. But Big Pharma Steps Up, and "Modest" Improvement Coming

Peter Kafka — Fri, 23 Oct 2009 13:59:39 +0000

The New York Times (NYT) delivered some modestly good news yesterday: The publisher said ad sales were still way, way down, but it had managed to cut costs enough to deliver a pleasant earnings surprise.

Can the paper cut costs even more? It’s going to try, starting with a 100-person cut in its newsroom, which will bring headcount down by eight percent. But the Times is also counting on the ad market to pick up at some point, and it says it can now see the faint outline of a recovery taking shape.

During the paper’s earnings call yesterday, it offered a bit of insight into who was buying ads and who wasn’t. In the latter category: Banks, mutual funds and insurance companies, which were burning cash a year ago in an effort to convince customers that things were okay; movie studios and telcos also pulled back. But health-care spending was up, via big pharma and hospitals. Were they pitching consumers or legislators?

Bear in mind that ad revenue dropped 26.9 percent for the quarter, so all of this is relative. So when the Times talks about seeing “encouraging signs of improvement,” as CEO Janet Robinson mentioned in a press release yesterday, what exactly does she mean?

Here’s Robinson’s answer to that question, delivered during yesterday’s call. Transcript via Seeking Alpha:

We’re seeing improvement, a modest improvement. We’re seeing certainly more requests for proposals across the board. We’re seeing a modest growth in regard to commitment. We still are seeing just in time commitments, so the visibility continues to be cloudy, but I think we are encouraged that indeed we see advertisers telling us that their business is improving and consequently requesting more information from us in regard to rates and placement and certainly customized programs.

I’ll give you an example. The retailers in September as noted in my remarks, we started to see a little bit of a pickup. We have had in depth conversations with them in regard to their improvement. So we do see traffic improvement in regard to the stores and consequently when that’s the case, they tend to want to do more in regard to building even more traffic.

Same holds true in regard to some of the national advertisers with technology and national automotive, with certainly the bankruptcies behind General Motors and Chrysler and some activity certainly in technology and healthcare, we are seeing more commitments coming our way in regard to national schedules as well.

The Pirate Bay Still Hasn't Gone Legit, Still Enjoys Poking Big Media in the Eye: The "$675,000 Mixtape"

Peter Kafka — Fri, 14 Aug 2009 13:00:25 +0000

Remember how the rascals at file-sharing site The Pirate Bay, chastened by the Swedish courts, were going to straighten up and go legit? Going to have to keep waiting on that one.

A reminder of the site’s outlaw status is splashed up on the site’s front page right now, in the form of a feature promoting “DJ Joel’s $675,000 Mixtape,” which is supposedly “Approved by the RIAA,” the U.S. lobbying/litigating arm of the big music labels.

It’s not approved by the RIAA, of course. Instead, the feature steers visitors to a page that where they can illegally download 30 songs that just cost grad student Joel Tenenbaum $675,000. That’s the amount a federal jury decided he owed the RIAA after being found guilty of copyright violations for sharing the tunes via a filesharing network.

It’s the kind of cheeky move The Pirate Bay revels in and one of the reasons the Web site has such a large and devoted base of users. The main reason, of course, is that The Pirate Bay is a huge repository for free, illegal copies of movies, music, games.

That’s supposedly going to stop after August 27, when Global Gaming Factory X, a Swedish software/Internet cafe outfit, says it will go through with plans to buy the site, and then try to make it legal.

As I’ve explained before, there’s no chance that will happen.

Even if the deal really goes through, the only way The Pirate Bay’s users will stick around is if they can continue to grab whatever they want, whenever they want. And there’s no way the big music labels and movie studios and videogame companies, et al, are going to go for that.

But it will be interesting to watch!

In the meantime, here’s the track listing for the 30 songs that landed Tenenbaum in trouble. I’m pretty sure most of them are available at Apple’s (AAPL) iTunes store:

01 – Incubus – New Skin
02 – Green Day – Minority
03 – Outkast – Wheelz of Steel
04 – Incubus – Pardon Me
05 – Nirvana – Come As You Are
06 – Green Day – When I Come Around
07 – Green Day – Nice Guys Finish Last
08 – Nirvana – Heart Shaped Box
09 – Nine Inch Nails – The Perfect Drug
10 – Blink 182 – Adam’s Song
11 – Limp Bizkit – Rearranged
12 – Limp Bizkit – Leech
13 – Linkin Park – Crawling Hybrid
14 – Deftones – Be Quiet And Drive
15 – The Fugees – Killing Me Softly
16 – Red Hot Chili Peppers – Californication
17 – Red Hot Chili Peppers – By The Way
18 – Red Hot Chili Peppers – My Friends
19 – Beck – Loser
20 – Eminem – My Name Is
21 – Eminem – Drug Ballad
22 – Eminem – Cleaning Out My Closet
23 – Beastie Boys – (You Gotta) Fight for Your Right (To Party)
24 – The Ramones – The KKK Took My Baby Away
25 – Monster Magnet – Look To Your Orb For The Warning
26 – Aerosmith – Pink
27 – OutKast – Rosa Parks
28 – Rage Against The Machine – Guerrilla Radio
29 – Goo Goo Dolls – Iris
30 – Aerosmith – Water Song/Janie’s Got A Gun

Is The Pirate Bay Really Going Legit? Of Course Not.

Peter Kafka — Tue, 30 Jun 2009 13:32:43 +0000

You can hear the head-scratching going on at movie studios and music labels across the world: What just happened to The Pirate Bay? Reports out of Sweden are murky at best. But supposedly, a Scandinavian software outfit is buying the world’s most notorious file-sharing site for about $8 million and will create a service that pays copyright owners when people download their work. Maybe.

You can read a confusing release from the supposed acquirer, Global Gaming Factory X, here, and an equally confusing post from The Pirate Bay’s operators, here. And The Pirate Bay guys, who are supposedly looking at a big fine and a jail term, say they didn’t actually own The Pirate Bay but will get some of the profits from the sale anyway and will use them to finance an “Internet project.” Etc.

Oh! And the Pirate Bay’s new owners say they can’t promise that copyright holders are actually going to get paid. Here’s Global Gaming CEO Hans Pandeya in the Financial Times:

However, Mr Pandeya said the company would not be able to compel any filesharers to pay content owners. “We are trying to create a different model that addresses the needs of the different parties. However, it is up to them if they want to participate,” he said.

So it’s understandable that Hollywood and big music are mute, or close to it, on the deal. Because it’s difficult to say exactly what the deal is. I was able to extract one statement from the IFPI, the international music trade group. Here’s chairman and CEO John Kennedy:

“We don’t know the details and there are many questions to ask about how this will work in practice, but we would be delighted if this resulted in the Pirate Bay turning into a legitimate licensed service.”

But let’s be honest: There’s no way The Pirate Bay is going legit. And if it does, it won’t be The Pirate Bay, but something else.

Instead of being a massive site that attracts a huge audience that wants to devour free content, it will be a small distributor of licensed content, and the masses will flock somewhere else for their free stuff. Because they don’t want licensed content, even if it’s legal and/or better quality. They want free stuff.

The movie studios and the labels should be able to pat themselves on the back, gently and cautiously, for getting The Pirate Bay’s current owners to more or less abandon the site.

The problem, as they’re well aware, is that The Pirate Bay was only a directory that sent users to “torrents” that allowed them to gobble up as much pirated stuff as they want. And shutting down the Bay doesn’t mean the torrents are gone. And it doesn’t prevent other directory sites from popping up, whack-a-mole style, all over the world.

Rent. Rip. Restraining Order.

John Paczkowski — Mon, 06 Oct 2008 18:38:41 +0000

The legal broadside Hollywood lobbed at RealNetworks (RNWK) last week has upset the company’s carefully prepared plans to offer a mainstream means of legally copying DVDs. A judge has issued a temporary ban on sales of Real’s RealDVD software in the wake of a lawsuit brought against it by the Motion Picture Association of America. Point your browser at the RealDVD site today and you’ll be greeted with the following message:

Due to recent legal action taken by the Hollywood movie studios against us, RealDVD is temporarily unavailable. Rest assured, we will continue to work diligently to provide you with software that allows you to make a legal copy of your DVDs for your own use.”

Good luck with that, folks.

As I’ve noted here before, RealDVD is a nice idea–a $30 software program that easily copies entire DVDs, right down to the menus, bonus features and cover art. And it does so in an ostensibly legal way. What it doesn’t do, though, is prohibit users from ripping DVDs that they rent. Effectively, users are on the honor system, which isn’t exactly a Hollywood-approved DRM scheme.