Alec Saunders SquawkBox

Rupert Murdoch is no dummy.  He says he loves cable TV, because people pay for it.  He also says hates Google because he doesn’t think he gets a fair share of the revenue that it generates in exchange for the content that his media businesses create.  And now he’s talking up the iPad, saying:

“Now that Apple is coming out with the Ipad that will be a very interesting way, more media is going to go into the Ipad…And they’ll get better and better and you’ll be able to do more tricks with it…And particularly with advertising and you see an advisement and you touch it and it becomes a 30 second commercial it’ll be these sort of things will happen not this year perhaps.”

It’s no secret that Google is paying less and less per click to advertising hosters.  The ad network model is simply not as profitable as it was when it first launched. Murdoch’s tussle with Google over revenues has a kind of quixotic feel about it, as everyone acknowledges that one can’t simply turn the internet back into the walled garden of old.

At the same time, it’s not clear to me why Murdoch couldn’t simply take the ideas he has for the iPad, and … test them on the internet.  Why fight Google, and why wait for the iPad. 

This morning we announced a promotion with Samsung Canada.  Buy a Samsung Laptop or Netbook between now and April 30, and you can have a year of Calliflower service free.  If your business requires you to have the occasional online meeting or conference call, then Calliflower is the tool for you!

So how does this work?

If you’re a Samsung customer and you’ve just bought a laptop or netbook, visit this web page to sign up.  You’ll get 12 months of Calliflower service at no charge.

If you’re a Samsung system integrator or VAR, then visit our affiliates portal, and sign up. Once you have signed up, then apply for the Samsung Canada campaign.  Within 24 hours, you’ll be approved.  Then sign up your customers using the link provided in the campaign.  After the initial 12 month free period, when your laptop customer signs up for Calliflower you’ll be eligible for commissions on those Calliflower sales – 20% to the reseller, and 5% to the rep who closed the deal.

That’s all there is to it.  Nothing to lose, eh?

A few people have written about this promotion today.  Jon Arnold gives us plaudits for “trying something different”, and the dynamic duo of Ken Camp and Sheryl Breuker described the offer as “a HUGE value”. As for us, we’re just to be pleased to be working with a great company like Samsung Canada. 

Now it’s time to charge ahead and make a few sales.

The digital video recorder was one of those game changing pieces of technology when it first debuted in 1998.  In our house, as in many, it has become a mainstay, especially through the last couple of weeks of the Olympics.  So let’s just say I was jazzed when Bell announced their remotepvr service. 

With Bell Remote PVR, you can now search listings, queue the PVR to record shows, manage the recordings you already have, and when you come home, you can watch them. And you can even do it on your iPhone using the Bell Remote PVR iPhone app.   Sounds good, no?

Well, the answer is no.  It’s just not a very good app, bearing all the hallmarks of being rushed to market with little user testing.  For example:

• The iPhone app has no “remember me” for the login.  Each time it starts you have to fumble around with logging in, and with the Bell user name and password security requirements that’s a lot of shifting and typing to get the required combination of letters and numbers in there.
• In a universe of 313 “now on” shows, the UI metaphor is a scrolling web page – complete with a next link at the bottom of each page allowing you see the entries 30 at a time.  You can search easily, but browsing to see what’s on is annoying.
• Bell TV allows you to add a secondary disk for archival purposes.  Want to hang onto a show?  Simply archive it.  And that’s good, because the only disk that you can record to is the primary disk.  What that means is that periodically you have to tell the box to archive material you want to keep.  RemotePVR let’s you see everything on the PVR, but doesn’t differentiate between archived and primary disk. You can delete a show from anywhere, but you can’t move a show from primary to archive.

These are basically nits, however. With a little polish, this jewel in the rough might become a gem.

By far the biggest let-down of this application follows.

If you were looking through a listing of previously recorded shows using your iPhone, and saw this screen, what would you think that the Watch button is intended to do?

Or how about this…  While browsing the guide, I note that Canada AM is currently on, and click on the show.  The following screen is displayed.  What would you think the Watch button would do in this circumstance?

Only one way to find out, right?  Go ahead and press it.  And this is what you get. 

No video plays, though, which is a bit strange. No matter how many times I press that play and pause button the video just doesn’t seem to show. 

So what does it do?  I’ll give you one clue… Janice just wandered into our home office and asked who was watching the TV downstairs.  It turns out that the TV is blasting out CTV’s Canada AM as I write this, and it started up when I pressed that watch button.    You can’t actually stream a show to your iPhone, but your iPhone can serve as a substitute remote while you’re watching TV.

In other words, to watch TV using Bell REMOTE PVR you have to be sitting in front of your TV. 

Oops.

Venture Capital in Canada is in a dismal state of disarray.  With activity at a 14 year low, investment companies have evaporated and funds are simply not being raised. Moreover, despite a resurgence of interest among angel investors, the institutional capital markets don’t show any sign of improving soon.  One angel I spoke with last week opined that series A investments for his companies were most likely to come from Boston or the San Jose / Palo Alto / San Francisco than Toronto.

Yesterday, US Senators John Kerry and Richard Lugar introduced The Startup Visa Act which, if passed, will almost certainly accelerate that trend.  Similar legislation has also been introduced in the US house of representatives by Colorado’s Jared Polis. Supported by more than 100 US vc’s and angel investors, the legislation would grant special visas to entrepreneurs with at least $100,000 from a sponsoring US investor in an equity financing of not less than $250,000. If after two years, the business has created 5 jobs and raised an additional $1,000,000, then the entrepreneur is entitled to permanent residency.

Many countries have immigrant investor legislation, including Canada. The legislation usually requires that an immigrant entrepreneur have a minimum net worth, and agrees to set up a business in the host country.  The Kerry-Lugar legislation is the the first that I’m aware of that allows an investor in the host country to essentially sponsor the immigrant.  That’s an important and useful innovation.  Moreover, the funding requirements are tiny by US investment standards, allowing US investors to cherry-pick the best new businesses from around the world and bring them to the United States.

Will this new process result in a flight of Canadian entrepreneurs to Silicon Valley? It certainly seems likely, but only time will tell.

“I think you’re over-intellectualizing this, John*.  Being an entrepreneur isn’t a risk/reward conversation, otherwise nobody would ever do it.”  Thus spake the “sage” of Ottawa, midway through a conversation with a close friend who’s thinking about striking out on his own after a lengthy career within one of the Fortune 500.  Somehow we had started talking about return on investment as it relates to startups, compared to continuing to be a working stiff in the corporate world.

Starting a business is a gutsy, and some might say foolish, exercise.  Your business is going to take longer to get off the ground than you ever imagined (Calliflower has taken nearly seven years!). You’re going to spend way more money than you ever expected. You’re going to earn far less than you “need” to live on.  You will likely bring on investors who will have strong views on your business that you may, or may not, agree with.  You will work more hours than you have ever done before.  And worst of all, you’ll spend more time working in the business – doing the accounting, cleaning, running servers and so on – than you ever anticipated and it will frustrate the heck out of you because you can see the forest for the trees.  It’s just that all those bloody trees are in the way…

And yet there is also:

• the incredible team that you’re going to build as you build your company. 
• the joy of bringing a new product to market – the inspiration, perspiration, and perseverance that culiminates in a launch. 
• the undeniable thrill of customers – the people who part with their hard earned dollars to buy the product or service that you’ve built;  the ones who are passionate enough once they’ve tried your product to tell you and your team what’s good, bad, great, or indifferent about your baby;  and those rare individuals who go out of their way to tell the world that what you all have done is great.
• the faith that family and friends have in you, and the responsibility that you have when they entrust even a portion of their savings to you and your new business. 
• the immense opportunity to learn new things.  I guarantee you, and everyone working on the business with you, will learn faster in this “job” than you’ve ever learned before.
• the network of mentors, advisors and friendships that you will build who are all rooting for this business and every other business you may build in the future.

And maybe, just maybe, at the end of it all you’ll make money out of this incredible life experience. You tell me – what’s the ROI on that kind of experience? 

I’m not even going to try to guess.

*not his real name.