Readings for February 11th, 2008


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How Edison Lost A Fan

10. Electrocuting an Elephant

In the late 1880s, Edison was embroiled in the "War of Currents" with George Westinghouse and Nikola Tesla. Edison had promoted the use of direct current (DC) for electric power distribution, whereas Westinghouse and Tesla wanted to use alternating current (AC).

At the time, Edison had over one hundred power stations in the United States that delivered DC electricity to consumers. But because of a power loss due to resistance of the wire during transmission, the power station had to be located within a mile of the consumers. Edison's then-employee, a brilliant Serbian engineer named Nikola Tesla proposed that AC could solve this problem but Edison didn't listen.

Indeed, Edison had previously asked Tesla to improve his electrical power stations with $50,000 ($1 million in 2006 US dollar, Tesla's wages were just $18 a week back then) as a reward. After Tesla delivered, Edison reneged on his offer and thus created bad blood between the two.

Back to the War of Currents: to demonstrate that his DC system was better and "safer," Edison noted that AC had a lethal potential and could be used to electrocute. Though he was against capital punishment, Edison (and a hired employee named Harold P. Brown) developed the electric chair.

In 1903, a circus elephant named Topsy at Coney Island's Luna Park went berserk and killed three people including an abusive trainer, who tried to feed her a lighted cigarette.

The elephant was considered a threat and the owners wanted it executed. When animal advocates protested the proposed method of hanging, Edison saw a publicity opportunity and suggested electrocution with AC.

Topsy was fed carrots laced with cyanide and then electrocuted with 6,000-volts AC. She died "without a trumpet or a groan" within seconds. (Source)




I used to think very positively of Edison. Even legends are mortal.

Source: neatorama.com

HotOrNot Apparently Very Hot: Acquired For $20 Million

San Francisco based HotOrNot, founded by James Hong and Jim Young in October 2000, has been acquired, we've heard from multiple sources.

The buyers are investors connected with Avid Life Media, and paid somewhere around $20 million for the site. Hong and and Young have been taking money out of the very profitable business all along the way - which we reported was another $20 million or in May 2007. HotOrNot never raised outside funding.

The investors are creating a new company, called HotOrNot Media (new site coming soon), and they may be acquiring more properties as well.

I spoke with Hong a few moments ago, who confirmed the acquisition, which closed on Friday, but not the price. He says he and Jim will not be affiliated with the business on a day to day basis going forward. "We've been working on HotOrNot for seven years now,"? said Hong, adding "It's time to break up with this girlfriend."?

HotOrNot makes money from advertising, virtual flowers and a premium fee when users want to connect. They experimented briefly with a free model, but abandoned it last September in the face of overwhelming spam. Their annual revenue is estimated to be around $5 million, with $2 million in profit. According to Comscore, the site has around 5 million monthly unique visitors and 200 million page views.


Source: TechCrunch

A world renowned brand for 20 mills, 4x rev, 10x net, and massive traffic? They should have shpped it around with dating sites, especially IAC's match.com. This one sounds like a steal to me.

BizReport: What price the letter "s"??

One of the U.K.'s leading travel community websites, www.cruise.co.uk, has forked out just over $1 million to purchase www.cruises.co.uk. The purchase, from German travel company Nees Reisen, is a record-breaking domain name deal in Britain.

The main purpose of the new site will be to focus on social networking, indicated Seamus Conlon, MD of www.cruise.co.uk. The number of first-time cruisers is rising, with the number of Britons taking a cruise in 2007 increasing 11 percent to 1.35 million. Those new travellers will search the Internet for real and unedited cruise reviews and that is exactly what www.cruises.co.uk will provide.

"Unlike normal package holidays, where people have been going to the same places and doing the same things for years, cruising is still a great unknown for a large percentage of our potential market,"? said Conlon.

"These people may not have friends or colleagues who have cruised, so they don't have a reference point - someone who can give their personal recommendation."?  


Source: Biz Report

Domain Name News: TrafficZ customers targeted by phishing scam

According to an email by TrafficZ, customers of the parking company have been target of a phishing scam. The email entitled "TrafficZ | Domain Termination Notice"? states that one of [the customer's] domains has been deleted from [their] TrafficZ account and asks them to visit Traffiz.com within 72 hours in order for their account not to be blocked. The link in the email leads the user to TrofficZ.com instead of going to TrafficZ.com. The originators of this phishing scam are attempting to capture the usernames and passwords of the mislead users.

Source: Domain Name News

DNJournal: Changing of the Guard: How Dan Pulcrano Became The Point Man in the Historic March From Old Media to the New World Online

If you are a domain owner you are involved in something much bigger than the domain business- you are in the media business. The success that domain owners are enjoying today is a direct result of a historic upheaval in the media business that is shifting advertising expenditures away from traditional outlets and onto the Internet. As one of the few publishers that have successfully navigated the treacherous straights between print media and the new world online, Boulevards New Media founder and CEO Dan Pulcrano gave us a unique opportunity to take you beyond domains for an inside look at the larger forces currently shaping our industry. Forces that are precipitating the fall of old media empires offline and the rise of new ones on the web - a seismic shift hat has put owners of high quality domains in the catbird seat. Of the six billion people on our planet, only a few dozen had the foresight in the mid 1990's to start acquiring domain names with the idea that they could become valuable in the future. Those very rare individuals were almost universally regarded as fools who were flushing perfectly good money down the drain. Fast forward barely a decade ahead and yesterday's fools have become today's visionaries. "Visionary" is a word that gets thrown around pretty casually in this business today and it is often applied to folks who, by their own admission, just happened to be lucky - in the right place at the right time. But there are true visionaries in the space and none is more deserving of that apellation than Dan Pulcrano. He saw (and bet the ranch) on the future of domains. Today he owns a near priceless portfolio that includes 20 of the 30 largest American city names in the .com extension (many already developed), including LosAngeles.com, San Francisco.com and Philadelphia.com to name just a few.

Source: DNJournal

Report: CNN citizen journalism site close to launch

CNN is close to expanding its "iReport" user-generated reporting initiative into a separate Web site, MediaWeek wrote Monday.

The new site, to be hosted at iReport.com, will be a repository for user-submitted news content--video, audio, and photos. Visitors can navigate through categories of news (like sports, weather, and politics), rate content, and embed it elsewhere on the Web. Contributors will be able to create profiles, and regulars can build up individual followings. As for filtering, the new site will be moderated once content has already been posted to the site; this is a change from CNN's current strategy with iReport, in which only select contributions are posted to CNN's Web site. This obviously means that the news runs the risk of inaccuracies and pranksters, but one could assume that moderation as well as community interaction could keep the fake-news factor to a minimum.


Source: CNET

The domain CNN is using is a recent domain sale by Rick Schwartz. To all of us it will be a reminder of a major domain sale, something we can always point others to in order to understand the power of a good domain.