Archive for November, 2006
Will social-networking sites come back to haunt?
November 21st, 2006
This may seem like an obvious point, and I’m sure others have made it before me, but should social-networking sites come attached with a health warning against posting content that you may look back on and regret in a few years time?
The issue was brought to my attention by a high-profile internet safety expert (I’m not sure if he’d like to be named), who is concerned that teenagers posting revealing personal information about themselves on social networks such as MySpace and Bebo now, will live to regret it further down the line when they come to apply for their first full-time jobs etc.
In many ways it’s a similar dilemma to getting a tattoo. It may be a fun thing to do at the time when you’re young and care-free, but will it still be cool to your blue-chip employer in five years time?
After years of working in the Internet industry, I’m still not entirely sure of the technicalities surrounding log files etc, but as I understand it, the majority of internet content is always retrievable. This means that the personal spaces of teenagers today will remain searchable for years to come - something that they might not be considering now.
I am sure employers are already using social-networking sites to carry out background checks on potential employees - this is nothing new. But it will be interesting to see if this becomes a bigger differentiator in the future.
Online sales to grow 40% in 2007
November 20th, 2006
Following the Christmas Online spend post, earlier this month, The Interactive Media in Retail Group (IMRG) has just issued its forecast for online shopping sales in 2007, and it looks good.
The IMRG believes sales online will total £42bn in 2007 compared with £30bn this year. That’s an increase of 40%, directly linked to the growth in broadband and continued faith in online retail.
James Roper, the chief executive of IMRG, commented: “More consumers are getting broadband. It is huge. When people have broadband they shop online, it is as simple as that. And the supply side from retailers is really just starting.”
October was the biggest ever month for online sales, according to the IMRG, with shoppers spending £2.7bn - up £250,000 on the previous record month, December 2005.
December 2006 is expected to break October’s record with a total sales figure around the £3.5bn mark.
November 17th, 2006
The answer has to be yes, but when? When will we see a usable version of the mobile Internet available to everyone?
Well, 3 thinks it has the answer with the launch of the X-Series, which incorporates partnerships with Internet pioneers such as Skype, Google and eBay.
3 say users will be able to make free Internet phone calls, watch their home television on their phone and tap into their home computers on the move via mobile broadband service.
The price for all these services will be a flat-rate monthly fee.
Hang on, that makes sense! Could this be the beginning of a new era in mobile Internet services?
We all remember the Anthill mob-like scramble for 3G licenses and the resulting void in successful services and profits alike. So what did turn consumers off originally? Well, take your choice:
- Mobiles didn’t delivered the characteristics of a web device
- Consumers weren’t willing to pay extra for a web device
- WAP - say no more
- Accessibility - many web sites aren’t set up for simple mobile browsing
- Frustration trying to get online
- Broken promises/over hype
- Mistrust of the operators due to the above
The list goes on, but the frustrating part is it can be done. A decent 3G device with built-in web browser to match can deliver a good Internet service, but that doesn’t mean the mobile Internet works. It just means those with the knowledge, funds and patience can get a reasonable service.
‘What about .mobi!’ I hear you cry, which promises mobile device users a better, more reliable Internet experience via sites ending with a .mobi domain. These sites are designed specifically for the smaller screens and other restraints of handsets.
Great, an excellent idea, but there is a suggestion that this development, although useful, is too late to capture the technical innovation on the web.
If the mobile Internet is to be seen as a success it needs to move beyond the few and provide a service for the masses. This maybe where it went wrong in the first instance, as the masses weren’t ready for it, but it is a different proposition today.
So back to 3’s new service, they say:“Why should you pay per minute, per message, per click, per megabit? In the real world, you buy your PC, pay for broadband and that’s it. Our principle is simple – X-Series customers will only pay a flat access fee on top of their basic subscription and then what’s free to use on the Internet should be free to use on mobile broadband”.
Hear, hear - let’s hope it works!
It will be interesting to get the first batch of consumer feedback on 3’s service and see how competitors react.
Disgruntled First Direct customer
November 16th, 2006
I had hoped to make this post yesterday before the news broke nationally that online bank First Direct was to begin charging customers £10 a month for the priviledge of holding a current account with them.
I received my written notification yesterday in a letter which, I’d hastily like to add, looked much like circular spam. I almost binned it, but luckily cast my eyes to the second half of the letter where it warned that from 1 February 2007, I’ll need to pay a balance of £1,500 per month into this account, or be charged a banking fee of £10 a month.
Not only was I shocked at being told how I should use my current account i.e for salary payment, but I was also extremely disappointed that an internet bank should be the first to test the water with paid-for banking.
I appreciate there is a cost to the bank for running an account, but with such marginal interest rates offered to the customer and its reduced overheads through being an online bank, I do not think this cost can be justified in the UK at the moment.
As an ex-new media journalist, I’ve written countless stories about the future of free online banking, versus the likelihood of high street banks having to charge for their services in the long-run. But never did I expect an internet bank to be the first to take the plunge.
I’m not a finance expert, and since the news broke, many have heralded this as the beginning of the end to free banking in Britain. But the message this sends to online banking newbies is unfortunate, and it comes at a time when stories of online banking security breaches have once again hit the headlines.
Some serious crisis management is called for by First Direct, as I am yet to see a satisfactory public response from them. If this letter is the only form of explanation I’m to receive, I’m on the lookout for a new current account!
UK Gov wins EU web video regulation battle
November 15th, 2006
Imagine a time when the Internet is regulated by the Government. This is exactly what the EU recommended under a clause in the updated European media regulation directive - TV Without Frontiers (TVWF), now renamed as the Audio-Visual Services Directive.
According to ZDNet UK we have Ofcom to thank for saving us from what could have seen the web wrapped in stifling red tape.
Culture secretary, Tessa Jowell, supported Ofcom, arguing that the plan was unworkable and would reduce creativity and investment in new media across Europe.
In the piece, an Ofcom spokesperson said:”The original proposals were flawed — they suggested regulations for all visual media services. Effectively we were being asked to regulate everything from Channel 4 right down to video blogs. There was a distinct lack of clarity in the proposals.”
Ofcom said it “pointed out this was not a good idea, and not achievable in practice. If we were expected to regulate websites, we would go from regulating a few hundred organisations to a regime where we would regulate hundreds of thousands of ordinary people”.
It’s far from over though. The new Audio-Visual Services Directive is yet to have its first reading or be ratified, so the final outcome is not settled.
The pressure is on, the EU must find an agreement to allow continued evolution of the web, whilst protecting against less desirable content.
The European Parliament will take a final vote in December, which will see the agreed directive adopted by the European Union in 2007.