The New Republic of Porn

One man’s quest to reshape the online porn industry through the “.xxx” top-level domain:

“The resistance to Lawley, whatever its merits, has the ring of desperation. ICM arrived at a moment of crisis for commercial porn. After enabling several boom years, the Internet has brought many smut marketers to their knees. Rampant freebies on “tube” sites have reduced global porn revenue by 50 percent since 2007, to less than $10 billion, including about $5 billion generated in the U.S. Those are rough guesses by Diane Duke, executive director of the industry’s trade group, the coyly named Free Speech Coalition. Speaking privately, some porn executives say the coalition’s revenue estimates are optimistic. In a field dominated by privately held companies, no provable statistics exist.

“Setting aside moral judgments and potential social harms—we’ll get to those—it’s remarkable that Lawley is making any money at all. Especially since he had to fight for seven years, spending millions of his own dollars, to get permission for .xxx from the Internet Corporation for Assigned Names and Numbers (ICANN), a nonprofit regulatory body. His persistence in the face of hostile lobbying by competitors, religious conservatives, and the U.S. government suggests that if the stubborn British entrepreneur claims to have a money-spinning solution for the Great Porn Depression, he should not be underestimated.”

Source: Businessweek
Published: Jun 21, 2012
Length: 18 minutes (4,702 words)

Obama’s CEO: Jim Messina Has a President to Sell

How Obama’s campaign manager Jim Messina is using technology and advice from high-profile mentors to prepare for November:

“The day after Jim Messina quit his job as White House deputy chief of staff last January, he caught a plane to Los Angeles, paid a brief visit to his girlfriend, and then commenced what may be the highest-wattage crash course in executive management ever undertaken. He was about to begin a new job as Barack Obama’s campaign manager, and being a diligent student with access to some very smart people, he arranged a rolling series of personal seminars with the CEOs and senior executives of companies that included Apple, Facebook, Zynga, Google, Microsoft, Salesforce, and DreamWorks. ‘I went around the country for literally a month of my life interviewing these companies and just talking about organizational growth, emerging technologies, marketing,’ he says at Obama’s campaign headquarters in Chicago.”

Source: Businessweek
Published: Jun 14, 2012
Length: 14 minutes (3,746 words)

How Mark Zuckerberg Hacked the Valley

What the Facebook founder did to outmaneuver his competitors, and the challenges he faces to keep employees motivated and investors happy after the IPO:

“One area Facebook will have to prove itself in is mobile. Earlier this month, it amended its public filings with the SEC to disclose that it doesn’t collect any meaningful revenue from smartphones and tablets, and its failure to do so is dampening per-user revenue. Mobile has flummoxed the company for years. In 2008, Jobs asked Facebook to present its iPhone app at Apple’s Worldwide Developers Conference. Instead of taking advantage of the opportunity himself, Zuckerberg sent a Facebook engineer and a marketing manager to handle it. They did such a poor job in auditions attended by Jobs and other Apple executives that Apple pulled them from the presentation, according to the person, who declined to be named for fear of alienating both companies.”

Source: Businessweek
Published: May 17, 2012
Length: 14 minutes (3,737 words)

Apple’s War on Android

Steve Jobs pledged to go “thermonuclear” in Apple’s battle against Google’s Android and device manufacturers like Samsung who he claimed ripped off the iPhone and iPad designs. But bringing a patent fight to court comes with significant risks:

“Several Asian manufacturers were noodling around with similar-looking rectangular smartphones before the iPhone came to market. Tipping its hat to a fellow Korean manufacturer, Samsung notes that in 2006, nearly a year before the iPhone appeared, LG Electronics (066570) announced the round-cornered LG Chocolate, with ‘virtually all of the [design] features Apple claims’ to have patented. In December 2006, before Apple released images of the iPhone, Samsung itself filed a design patent in Korea for a similar rectangular phone called the F700. Smartphone and tablet-computer design was ‘naturally evolving’ in the direction Apple claims it has exclusive rights to use, according to Samsung. If true, that matters because basic patent law states that if an idea is ‘obvious’ to an ‘ordinary observer’ at the time of its invention, it doesn’t deserve patent protection. By attacking Samsung, Apple has inadvertently put its own patents into play.”

Source: Businessweek
Published: Mar 29, 2012
Length: 18 minutes (4,578 words)

BuzzFeed, the Ad Model for the Facebook Era?

Inside the social media factory created by former Huffington Post cofounder Jonah Peretti—how they’ve cracked viral content, invested in original content, and made money:

“At around 5 p.m., Stopera published ’48 Pictures That Perfectly Capture the ’90s’ on BuzzFeed. ‘These pictures are all that and a bag of chips!’ he wrote at the top of the list. A BuzzFeed visitor with an appetite for ’90s nostalgia could scroll down, gawk at the 48 retro images, read the deadpan captions, recall Bob Saget, Tipper Gore, and Scottie Pippen, laugh at the crazy fashion, and resurface to the present day in a matter of minutes. It racked up 1.2 million page views.”

Source: Businessweek
Published: Mar 22, 2012
Length: 12 minutes (3,208 words)

Twitter, the Startup That Wouldn’t Die

Inside CEO Dick Costolo’s efforts to perfect the company’s revenue model and compete with Google and Facebook for ad dollars:

“Twitter still makes money with licensing deals—Microsoft pays to get a real-time feed of tweets for its search engine, Bing. But Costolo firmly established the company’s primary identity as a communications tool that lets advertisers contribute content along with other users free of charge—and then pay extra to make their messages more prominent. The centerpiece of Twitter’s plans, what Costolo calls ‘the atomic unit of our ad strategy,’ is the ‘promoted tweet,’ a message from an advertiser that appears near the top of a user’s feed. Advertisers pay only when a user ‘engages’ with the tweet—retweets it, say, or clicks on a link. The more people click on an ad, the more the ad appears. Twitter executives trumpet an engagement rate of 3 percent to 5 percent, compared with less than 0.5 percent for normal banner ads.”

Author: Brad Stone
Source: Businessweek
Published: Mar 2, 2012
Length: 12 minutes (3,172 words)

The Story Behind the Olympus Scandal

Ex-president and CEO Michael Woodford says he tried to blow the whistle on fraudulent accounting related to $1.6 billion in transactions. He was then fired:

“Woodford, 51, recounted how he had just returned from Hong Kong, having fled Tokyo after a board meeting in which Olympus Chairman Tsuyoshi Kikukawa had fired him. The cause for dismissal, according to Woodford: his insistence that Olympus officials come clean about a series of questionable purchases dating to 2006, totaling $1.6 billion, none of which had been adequately reported in the company’s consolidated financial statements. The deals had been approved by Kikukawa and the Olympus board, yet in several cases the parties receiving the sums were not even clearly identified in Olympus’s books. (At least one Japanese magazine had strongly hinted that the Yakuza were beneficiaries of some of these shady deals.) Woodford, frustrated by the board’s stonewalling, had hired the accounting firm PricewaterhouseCoopers to conduct an independent audit of the suspicious transactions. For several weeks leading up to his dismissal, he had been calling the board to account for these transactions, and eventually demanded the board’s resignation. Instead, Woodford was purged. And now he was running for his life.”

Source: Businessweek
Published: Feb 18, 2012
Length: 17 minutes (4,489 words)

Dinner at Rupert’s

How one night at Rupert Murdoch’s London townhouse changed the course of the phone-hacking scandal:

“Red wine in hand, Rupert Murdoch chatted with guests at his London townhouse on what would be one of the most important nights to the future of his company. Gathered for cocktails were Rupert’s son James, heir apparent to the family media empire; Rebekah Brooks, the chief­executive of News Corp.’s U.K. unit; and Chase Carey, the New York-based president and chief operating officer. Joining the executives were a pair of legal heavyweights: Joel Klein, former New York City schools chancellor, and Brendan Sullivan Jr., the well-connected Washington lawyer brought into the Murdoch fold at Klein’s request.

“It was May 19, 2011. The senior Murdoch had flown in two days earlier for a whirlwind of meetings with his top London executives. He had called the dinner party to hash out once and for all how to handle the phone-hacking scandal that had been hanging over the company for months and was suddenly spinning out of control.”

Source: Businessweek
Published: Feb 10, 2012
Length: 8 minutes (2,201 words)

Making the World’s Largest Airline Fly

An inside look at the operational challenges facing United and Continental as they merge—from the union negotiations to the choice of in-flight coffee:

“On July 1 the new United introduced its new coffee. Fliers on the ‘legacy United’ fleet, accustomed to Starbucks, let out a collective yowl of protest. Pineau-Boddison had expected some resistance—Starbucks, after all, is a popular brand—but this was something else. Flight attendants reported a barrage of complaints. Pineau-Boddison received angry e-mails from customers, as did Smisek. The coffee, fliers complained, was watery.

“The beverage committee launched an inquiry. The coffee itself, they discovered, was only part of the problem. Airplane coffee is made from small, premeasured ‘pillow packs’ that sit in a brew basket drawer at the top of the galley coffee machine. When the drawer is closed, boiling water flows through the pillow into the pot below. The old United brew baskets, the committee discovered, sit a quarter of an inch lower than Continental’s, leaving a space for water to leak around the pillow pack.”

Source: Businessweek
Published: Feb 3, 2012
Length: 15 minutes (3,866 words)

Amazon’s Hit Man

Former Time Warner Book Group CEO Larry Kirshbaum jumps from the traditional publishing world to “the dark side,” heading up Amazon Publishing. Meanwhile, the Big Six watch closely:

“Amazon could be an unstoppable competitor to big publishing houses. If history is any guide, Jeff Bezos, who declined to comment for this story, doesn’t care whether he loses money on books for the larger cause of stocking the Kindle with exclusive content unavailable in Barnes & Noble’s Nook or Apple’s iBookstores. He’s also got almost infinitely deep pockets for spending on advances to top authors. Even more awkwardly for publishers, Amazon is their largest retailer, so they are now in the position of having to compete against an important business partner. On the West Coast people cheerfully call this kind of arrangement coopetition. On the East Coast it’s usually referred to as getting stabbed in the back.”

Author: Brad Stone
Source: Businessweek
Published: Jan 26, 2012
Length: 13 minutes (3,406 words)