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Graduation season is well underway, with kindergartners, high schoolers, college seniors and graduate students alike donning caps and gowns to celebrate their achievement. With their diplomas, graduates also get words of wisdom from a commencement speakers and a good excuse to celebrate. -- Lloyd Young ( 31 photos total)
US Naval Academy graduates throw their hats at the conclusion of their commencement and commission ceremony, attended by President Barack Obama at the Navy-Marine Corps Memorial Stadium on May 24 in Annapolis, Md. (Michael Reynolds/European Pressphoto Agency)     

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Original author: 
Casey Johnston

Casey Johnston

Aereo, a service that streams over-the-air channels to its subscribers, has now spent more than a year serving residents of New York City. The service officially expands to Boston tomorrow and is coming to many more cities over the next few months, including Atlanta and Washington, DC. Aereo seems like a net-add for consumers, and the opposition has, so far, failed to mount a defense that sticks.

But the simple idea behind Aereo is so brilliant and precariously positioned that it seems like we need to simultaneously enjoy it as hard as we can and not at all. We have to appreciate it for exactly what it is, when it is, and expect nothing more. It seems so good that it cannot last. And tragically, there are more than a few reasons why it may not.

A little about how Aereo works: as a resident of the United States, you have access to a handful of TV channels broadcast over the air that you can watch for free with an antenna (or, two antennas, but we’ll get to that). A subscription to Aereo gets you, literally, your very own tiny antenna offsite in Aereo’s warehouse. The company streams this to you and attaches it to a DVR service, allowing you both live- and time-shifted viewing experiences.

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Original author: 
Nate Anderson


The ghost of Steve Jobs will not be pleased to see this.

Zack Henkel

Robert Silvie returned to his parents' home for a Mardi Gras visit this year and immediately noticed something strange: common websites like those belonging to Apple, Walmart, Target, Bing, and eBay were displaying unusual ads. Silvie knew that Bing, for instance, didn't run commodity banner ads along the bottom of its pristine home page—and yet, there they were. Somewhere between Silvie's computer and the Bing servers, something was injecting ads into the data passing through the tubes. Were his parents suffering from some kind of ad-serving malware infection? And if so, what else might the malware be watching—or stealing?

Around the same time, computer science PhD student Zack Henkel also returned to his parents' home for a spring break visit. After several hours of traveling, Henkel settled in with his computer to look up the specs for a Mac mini before bedtime. And then he saw the ads. On his personal blog, Henkel described the moment:

But as Apple.com rendered in my browser, I realized I was in for a long night. What I saw was something that would make both designers and computer programmers wince with great displeasure. At the bottom of the carefully designed white and grey webpage, appeared a bright neon green banner advertisement proclaiming: “File For Free Online, H&R Block.” I quickly deduced that either Apple had entered in to the worst cross-promotional deal ever, or my computer was infected with some type of malware. Unfortunately, I would soon discover there was a third possibility, something much worse.

The ads unnerved both Silvie and Henkel, though neither set of parents had really noticed the issue. Silvie's parents "mostly use Facebook and their employers' e-mail," Silvie told me, and both those services use encrypted HTTPS connections—which are much harder to interfere with in transit. His parents probably saw no ads, therefore, and Silvie didn't bring it up because "I didn't want [them] to worry about it or ask me a lot of questions."

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How can we make sense of it all?
A few weeks ago, I had dinner with Saumil and Sailesh, co-founders of LocBox.* Instagram had just been acquired by Facebook and there was speculation (later confirmed) about a big up round financing of Path. The recent large financing of Pinterest was still in the air, and the ongoing parlor game of when Facebook would go public and at what price was still being played. A couple of months prior, Zynga had acquired OMGPOP.

Sailesh wondered aloud, “How much time do we have for any of these?” “How many of them can coexist?” and “Do we really need them?” My answers were, respectively: “A lot.” “Many of them.” and “No, but we want them.” That dinner discussion prompted some observations that I am outlining here, and I invite you to share your own observations in the comments below.

In a nutshell, the Internet has evolved from being a need-driven utility medium with only a handful of winners to a discovery-driven entertainment medium with room for multiple winners. The necessary and sufficient conditions for this evolution are now in place — broadband, real names and tablets are the three horsemen of this New New Web. As consumers, entrepreneurs and investors, we should get used to the fact that the online economy is increasingly blurring with the offline economy, and in the limit, that distinction will disappear. As a result, just as in the real world, the Web of entertainment will be much bigger than the Web of utility.

A Theory of Human Motivation
One framework for understanding the consumer Internet is Maslow’s Hierarchy of Needs, which Abraham Maslow put forward as a way of explaining human behavior at large. The core premise is that once our basic needs of food, shelter, safety and belonging are satisfied, we tend to focus on things that are related to creativity, entertainment, education and self-improvement. A key aspect of this framework is that it’s sequential: Unless the basic needs are met, one cannot focus on other things. As an example, a study in 2011 showed that humans who are hungry will spend more on food and less on non-food items compared to those who are not hungry. Using this framework, we can see how consumer adoption of the Web has evolved over the last 20 years, and why all of the ingredients are only now in place for consumers to use the Web for what Maslow called “self-actualization” — a pursuit of one’s full potential, driven by desire, not by necessity.

1992-2012: Web of Need
Between the AOL IPO in 1992 and the Facebook IPO last month, the Internet has largely been in the business of satisfying basic consumer needs. In 1995, the year Netscape went public and made the internet accessible to the masses, I was a young product manager for a consumer Internet company called Global Village Communication. We were a newly minted public company and our hottest product was a “high speed” fax/modem with a speed of 33.6 kbps. Back then, using the Internet as a consumer or making a living off it as a business was rather difficult, and sometimes simply frustrating. In the subsequent years the basic needs of access, browser, email, search and identity were solved by companies such as AOL, Comcast, Netscape, Yahoo, Google, LinkedIn and Facebook.

2012-?: Web of Want
Today, the billion users on Facebook have reached the apex of Maslow’s hierarchy on the web. All of our basic needs have been satisfied. Now we are in pursuit of self-actualization. It is no surprise that on the Web, we are now open to playing games (Zynga, Angry Birds), watching video (YouTube, Hulu), listening to music (Pandora, Spotify), expressing our creativity (Instagram, Twitter, Draw Something), window shopping (Pinterest, Gojee*) and pursuing education (Khan Academy, Empowered*).

The Web Is Becoming Like TV
How do we make sense out of a Web where multiple providers coexist, serving groups of people who share a similar desire? Turns out we already have a very good model for understanding how this can work: Television. Specifically, cable television. The Web is becoming like TV, with hundreds of networks or “channels” that are programmed to serve content to an audience with similar desires and demographics. Pinterest, ShoeDazzle, Joyous and Alt12* programmed for young, affluent women; Machinima, Kixeye and Kabam programmed for mostly male gamers; Gojee* for food enthusiasts; Triposo* for travellers; GAINFitness* for fitness fans and so on.

In this new new Web, an important ingredient to success is a clear understanding of the identity of your users to ensure that you are programming to that user’s interests. The good news is that unlike TV, the Web has a feedback loop. Everything can be measured and as a result the path from concept to success can be more capital efficient by measuring what type of programming is working every step of the way — it’s unlikely that the new new Web will ever produce a Waterworld.

Why Now? Broadband, Real Names & Tablets
As my partner Doug Pepper recently wrote, a key question when evaluating a new opportunity is to ask “Why Now?” Certainly, companies like AOL, Yahoo and Myspace have tried before to program the Web to cater to interests of specific audiences. What’s different now? Three things: Broadband, real names and tablets.

The impact of broadband is obvious; we don’t need or want anything on a slow Web. With broadband penetration at 26 percent in industrialized countries and 3G penetration at about 15 percent of the world’s population, we are just reaching critical mass of nearly 1B users on the fast Web.

Real names are more interesting. In 1993, the New Yorker ran the now famous cartoon; “On the Internet, nobody knows you’re a dog.” This succinctly captured the state of the anonymous Web at the time. Reid Hoffman and Mark Zuckerberg changed that forever. Do we find Q&A on Quora to be more credible than Yahoo! Answers, celebrity profiles on Twitter more engaging than Myspace and pins on Pinterest more relevant than recommendations on early AOL chatrooms? I certainly do, and that is largely because Quora, Twitter and Pinterest take advantage of real names. Real names are blurring the distinction between online and offline behavior.

Finally, the tablet, the last necessary and sufficient piece that fuels the “Web of want.” The PC is perfect for the “Web of need” — when we need something, we can search for it, since we know what we are looking for. Searching is a “lean-forward” experience, typing into our PC, either at work or at the home office. The Web over the last decade has been optimized for this lean-forward search experience — everything from SEO to Web site design to keyword shortcuts in popular browsers makes that efficient. However, smartphones and tablets allow us to move to a “lean-back” experience, flipping through screens using our fingers, often in our living rooms and bedrooms, on the train or at the coffee shop. Tablets make discovery easy and fun, just like flipping channels on TV at leisure. These discoveries prompt us to want things we didn’t think we needed.

Early Signs
This thesis is easy to postulate, but is there any evidence that users are looking to the Web as anything more than a productivity platform? As has been reported, mobile devices now make up 20 percent of all U.S. Web traffic, and this usage peaks in the evening hours, presumably when people are away from their office. Analysis from Flurry* shows that cumulative time spent on mobile apps is closing in on TV. We certainly don’t seem to be using the Web only when we need something.

Economy of Need Versus Want
The economy of Want is different from the economy of Need. We humans tend to spend a lot more time and money on things we want compared to things we need. For example, Americans spend more than five hours a day on leisure and sports (including TV), compared to about three hours spent on eating, drinking and managing household activities. Another difference is that when it comes to satisfying our needs, we tend to settle on one provider and give that one all of our business. Think about how many companies provide us with electricity, water, milk, broadband access, search, email and identity. The Need economy is a winner-take-all market, with one or two companies dominating each need. However, when it comes to providing for our wants, we are open to being served by multiple providers. Think about how many different providers are behind the TV channels we watch, restaurants we visit, destinations we travel to and movies we watch. The Want economy can support multiple winners, each with a sizeable business. Instagram, Path, Pinterest, ShoeDazzle, BeachMint, Angry Birds, CityVille, Kixeye, Kabam, Machinima and Maker Studios can all coexist.

Investing in the Web of Want
The chart below shows that over a long term (including a global recession) an index of luxury stocks (companies such as LVMH, Burberry, BMW, Porsche, Nordstrom) outperforms an index of utility stocks (companies such as Con Edison and Pacific Gas & Electric that offer services we all need). The same applies to an index of media stocks (companies such as CBS, Comcast, News Corp., Time Warner, Viacom) which outperforms both the utilities and the broader stock market. Of course, higher returns come with higher volatility — Nordstrom’s beta is 1.6 and CBS’ beta is 2.2, compared to 0.29 for PG&E. It is this volatility that has cast investing in the Want business as a career-ending move in Silicon Valley for the past 20-plus years. As the Web evolves from serving our needs to satisfying our wants and, in turn, becomes a much larger economy, sitting on the sidelines of the Web of Want may not be an option.

Let’s Not Kill Hollywood
With a billion users looking for self-actualization and with the widespread adoption of broadband, real names and tablets, the Web is poised to become the medium for creativity, education, entertainment, fashion and the pursuit of happiness. As the offline world shows, large, profitable companies can be built that cater to these desires. Entrepreneurs and investors looking to succeed in the new new Web can learn quite a few lessons from our friends in the luxury and entertainment businesses, which have been managing profitable “want” businesses for decades. The fusion of computer science, design, data, low friction and the massive scale of the Internet can result in something that is better than what either Silicon Valley or Hollywood can do alone. It is no wonder that the team that came to this conclusion before anyone else is now managing the most valuable company in the world.

Epilogue
When we go see a movie or splurge on a resort vacation, we don’t stop using electricity, brushing our teeth or checking our email. The Web of Want is not a replacement for the Web of Need, it is an addition. Many of the Internet companies that satisfied our needs in the last 20 or more years of the Web are here to stay. In fact, they will become more entrenched and stable, with low beta, just like the utilities in the offline world. Microsoft has a beta of exactly 1.0 — it is no more volatile than the overall stock market. And for those longing for the days of “real computer science” on the Web, do not despair. Just keep an eye on Rocket Science and Google X Labs — there is plenty of hard-core engineering ahead.

Disclosures: * indicates an InterWest portfolio company. Google Finance was used for all of the stock charts and beta references.

Keval Desai is a Partner at InterWest, where he focuses on investments in early-stage companies that cater to the needs and wants of consumers. He started his career in Silicon Valley in 1991 as a software engineer. He has been a mentor and investor in AngelPad since inception. You can follow him @kevaldesai.

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About a year and a half ago, I researched the state of routers: about as unsexy as it gets but essential to the stability, reliability, and security of your Internet connection. My conclusion?

This is boring old plain vanilla commodity router hardware, but when combined with an open source firmware, it is a massive improvement over my three year old, proprietary high(ish) end router. The magic router formula these days is a combination of commodity hardware and open-source firmware. I'm so enamored of this one-two punch combo, in fact, I might even say it represents the future. Not just of the everyday workhorse routers we all need to access the Internet – but the future of all commodity hardware.

I felt a little bad about that post, because I quickly migrated from the DD-WRT open source firmware to OpenWRT and then finally settled on Tomato. I guess that's open source, too many choices with nobody to really tell you what's going to work reliably on your particular hardware. But the good news is that I've been running Tomato quite happily with total stability for about a year now – primarily because it is gloriously simple, but also because it has the most functional quality of service (QoS) implementation.

Tomato-qos

Why does functional Quality of Service matter so very much in a router? Unless you have an Internet connection that's only used by your grandmother to visit her church's website on Sundays, QoS is the difference between a responsive Internet and one that's brutally dog slow.

Ever sat in an internet shop, a hotel room or lobby, a local hotspot, and wondered why you can't access your email? Unknown to you, the guy in the next room or at the next table is hogging the internet bandwidth to download the Lord Of The Rings Special Extended Edition in 1080p HDTV format. You're screwed - because the hotspot router does not have an effective QoS system. In fact, I haven't come across a shop or an apartment block locally that has any QoS system in use at all. Most residents are not particularly happy with the service they [usually] pay for.

When I switched from DD-WRT and OpenWRT to Tomato, I had to buy a different router, because Tomato only supports certain router hardware, primarily Broadcom. The almost universal recommendation was the Asus RT-N16, so that's what I went with.


Asus RT-N16

And it is still an excellent choice. If you just want a modern, workhorse single band wireless N router that won't break the bank, but has plenty of power and memory to run Tomato, definitely try the Asus RT-N16. It's currently available for under $80 (after $10 rebate). Once you get Tomato on there, you've got a fine combination of hardware and software. Take it from this SmallNetBuilder user review:

I'm a semigeek. Some of the stuff on this site confuses me. But I figured out enough to get this router and install Tomato USB. Great combination. Have not had any problems with the router. Love all the features that Tomato gives me. Like blocking my son's iPod after 7 PM. Blocking certain websites. Yeah, I know you can do that with other routers but Tomato made it easy. Also love the QoS features. Netflix devices get highest bandwidth while my wife's bittorrent gets low.

Review was too heavily slanted against the Asus software, which I agree is crap. I bought the router for its hardware specs. Large memory. Fast processor. Gigabyte lan. 2 USB ports.

What's not to love? Well, the dual band thing, mainly. If you want a truly top of the line router with incredible range, and simultaneous dual band 2.4 GHz and 5 GHz performance bragging rights, fortunately there's the Asus RT-N66U.

Asus RT-N66U

This is, currently at least, the state of the art in routers. It has a faster CPU and twice the memory (256 MB) of the RT-N16. But at $190 it is also over twice the price. Judge for yourself in the SmallNetBuilder review:

As good as the RT-66U is, our wireless performance results once again show that no router is good in every mode that we test. But that said, the Dark Knight clearly outperformed both the NETGEAR WNDR4500 and Cisco Linksys E4200V2 in most of our two and three-stream tests. And it's the only router in recent memory able to reach to our worst-case/lowest-signal test location on the 5 GHz band, albeit with barely-usable throughput. Still, this is an accomplishment in itself.

If you're going to spend close to $200 for a wireless router, you should get a lot for your money. The Dark Knight seems to deliver wireless performance to justify its high price and has routing speed fast enough to handle any service a consumer is likely to have, even our friends in Europe and Asia.

Its only weakness? Take a guess. Oh wait, no need to guess, it's the same "weakness" the RT-N16 shared, the sketchy Asus firmware it ships with out of the box. That's why we get our Tomato on, people! There is complete and mature support for the RT-N66U in Tomato; for a walkthrough on how to get it installed (don't be shy, it's not hard) Check out Shadow Andy's TomatoUSB firmware flashing guide.

Does having nice router hardware with a current open source firmware matter? Well, if your livelihood depends on the Internet like mine does, then I certainly think so.

Internet-serious-business

At the very least, if you or someone you love is also an Internet fan and hasn't given any particular thought to what router they use, maybe it's time to start checking into that. Now if you'll excuse me, I'm going to go donate to the Tomato project.

[advertisement] What's your next career move? Stack Overflow Careers has the best job listings from great companies, whether you're looking for opportunities at a startup or Fortune 500. You can search our job listings or create a profile and let employers find you.

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google I'm feeling lucky stock 1020

There was once a time when the business of consumer technology was conducted with tangible goods. You bought a thing, whether it was a Sony VCR or a Sega console, you carried it home amidst a hormonal high of hunter-gatherer instinct, and you prayed to the electro-deities that it wouldn't lose whatever format war it was engaged in. Adding functionality to your purchase was done in the same way. You returned to the store, picked up cartridges, cassettes, or discs, and inserted them into the appropriate receptacle.

That overriding paradigm hasn't actually changed in modern times, even as the devices themselves have grown exponentially more versatile. Your choice of hardware still matters in determining what you can and can't access,...

Continue reading…

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Brand recognition is important in any consumer based industry, and the video game industry is no exception. However, there is always the danger of misusing brands which this post examines two of those ways.

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As the year draws to a close, we asked some A List Apart readers to tell us what they learned about the web in 2011. Together their responses summarize the joys and challenges of this magical place we call the internet. We need to continue to iterate, to embrace change, and challenge complexity to keep shipping. Above all, we must continue to reach out to one another, to teach, to support, to help, and to build the community that sustains us.

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Seven weeks into Occupy Wall Street, the movement continues in locations both large and small. There have been recent clashes between protesters and police in several cities, most notably Oakland, California. Some of the first protesters arrested in New York are due to appear in court today, facing charges related to mass arrests made earlier in Manhattan and on the Brooklyn Bridge. Meanwhile, financial support has been pouring in. OWS organizers have raised more than half a million dollars and are now struggling to manage such a large pool of donations. Gathered here are recent scenes from the Occupy movement across the U.S. and overseas. [43 photos]

Occupy Oakland protesters cheer as they climb on tractor trailers loaded with shipping containers at the Port of Oakland, California, on November 2, 2011, effectively shutting down the United States' fifth busiest port during a day of non-stop protesting in Oakland. (AP Photo, Kent Porter, Santa Rosa Press Democrat)

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