It's complicated. God, is it ever. The same October Details story that follows around New York's "Internet playboys" and their bicoastal hangers-on runs with this chart of who dated, funded, or hated in this overdocumented side of the Web scene. So sweet to know we're not the only ones keeping a scorecard, but one of its subjects, Caroline McCarthy, claims there's inaccuracies! Let's do Details and the kids recently fanning their fameballs from the coverage a favor and fix it up then. Ready? Let loose in the comments with your errata.
MySpace Music, a joint venture between the News Corp. social network and music labels Universal, Sony and Warner,finally launches next week, says Fortune, though it still won't have a CEO. MySpace users will be able to listen to and organize playlists full of songs from all three music labels for free. (EMI is the lone holdout, which means no coldplay.) Playlists will include affiliate links to Amazon.com's MP3 store. MySpace CEO Chris DeWolfe says ad revenues and song kickbacks are going to save the music industry, replacing lost CD sales.Imeem CEO Dalton Caldwell, whose company already offers a similar product,
Muxtape founder Justin Ouellette says he's shut down the mixtape-hosting website because of a problem with the Recording Industry Association of America. A statement from the RIAA itself seems to confirm the story. Bu we hear another reason Muxtape is shutting down is that it got too expensive for Ouellette to keep up.A tipster tells us Muxtape investor Jakob Lodwick has been heard to complain that the site's hosting bill alone amounts to $30,000 per day. That figure seems absurdly high — but could our tipster have misheard Lodwick saying the bill is $30,000 a month? After Muxtape's first day, Ouellette posted the site's stats, reporting 8,685 users uploading and playing 19,731 songs over 35,000 visits cost Muxtape $118.17 with Amazon's S3 online-storage service. Extrapolate that first day over a month, at Amazon's standard rates, and you've got a $3,545 hosting bill. Compete.com confirms that Muxtape's user base has grown at least tenfold since then, making a $30,000/mo. hosting bill not just plausible, but likely. The bill is also far more than Lodwick or Ouellette seem to have expected. In an accidentally published investment term sheet, Ouellette estimated three months of hosting would cost $18,000. That's about $72,000 off the mark, enough to eat through Lodwick's $95,000 investment and shut down the site, angry letters from the RIAA or no.
Even when Manhattan's favorite Internet hipster Jakob Lodwick isn't high, he's not that hard-working. Connected Ventures cofounder Zach Klein reminisces about the early days of Connected Ventures, the IAC-backed testosteronefest behind CollegeHumor and Vimeo. Lodwick leads the startup's crew in singing "Semi-Charmed Kind of Life," and trashes cofounder Ricky Van Veen's cardboard cutout of Shaquille O'Neal. Any questions on why Vimeo's performance soared after IAC fired Lodwick? shaq attack from Amir Cohen on Vimeo.
Only weeks after the millionaire tech-boy stormed off the Internet in a huff, he reappears in this video on his website. SERIOUSLY Jakob, you should just bring your blog back because posting stuff like this anywhere simply invites more abuse. Also, this vid will be especially relatable if you've ever smoked a boatload of weed and ate a bag and a half of 'shrooms at the same time.
In the second quarter, IAC swung from a $94.6 million profit last year to a $421.6 million loss this year. Don't blame Jakob Lodwick! His former company, Vimeo, is nowhere near the top of IAC/InterActiveCorp's expense report for the past quarter. The real problem at Barry Diller's Internet empire is Cornerstone Brands, a rollup of catalog companies undermined by weak consumer spending in home and apparel retail. Cornerstone's losses led to a $300 million writedown in goodwill in IAC's second quarter. In addition, the soft real estate market cut revenue for home financing site LendingTree nearly in half.IAC is moving ahead with plans to spin off four of its divisions by the end of August: HSN (which includes Cornerstone), Ticketmaster, Tree.com (which includes LendingTree), and Interval Leisure Group, which operates vacation sites including ResortQuest Hawaii. That leaves IAC with Ask.com, Match.com and Citysearch. What's happening? Simple: Diller and company have learned that bundling a bunch of diverse online businesses together doesn't create the promised "synergy" of the Web 1.0 boom. Better to let each site fend for itself. Since IAC got rid of Expedia in 2005 (Barry Diller's still chairman of the board), the travel site's ups and downs have closely followed the travel market. That's the watercooler version. You can wonk out with the full details.