UKNM: More webwashing

[Tim Hayward]

>

>    updated 4:55 p.m.  12.May.99.PDT

>

> A Real Dilemma for Webcasters

>

by <chrisjwired [dot] com (mailto:chrisjwired [dot] com)>Christopher Jones

>

> 3:00 a.m.  12.May.99.PDT

> Software that blocks ads on the Web has been around for almost as long as the

> banners themselves. But for various reasons, these tools never caught on.

>

> Still, when <http://www.realnetworks.com>RealNetworks recently began promoting

> a new version of ad-blocking software, some of its clients were aghast. After

> all, Webcasters depend on banner advertising to survive. They complain that

> Real's promotion of <http://www.atguard.com/>AtGuard, a product developed by

> WRQ, a Seattle-based software company, is a threat to their livelihood.

>

>

> See also:

>

<http://redirect.wired.com/redir/10025/http://www.wired.com/news/news/poli

> tics/story/19519.html>RealNetworks Gets Video in 3-D

>

> "There is a fundamental principle involved in surviving the Internet

> streaming business," said Scott Mathias, editorial director of

> <http://www.itvworld.com>ITVworld.com, a Real client that was rankled by the

> development. "I consider Real's release of 'revenue-blocking software' as

> ill-conceived and ill-timed, and it is definitely an illustration of Real's

> totally unsupportive partnership program."

>

> Mathias wasn't the only one to complain. Messages went out on Webcasting

> newsgroups, and debate ensued about the company's motivations -- might they

> be undermining banner ads to promote their new audio and video advertising

> tools?

>

> They threatened to boycott Real's software and find other ways to undermine

> the company's business. Others, however, noted that ad-blockers are a user's

> right.

>

> Although RealNetworks didn't develop the ad-blocking software, the company

> did promote it -- at a 50 percent discount, to boot -- in an email message

> that went out to many of its customers earlier this month:

>

> Dear RealPlayer Plus Customer,

>

> Time stands still -- especially if you're waiting for slow Web sites to load.

> And it's even worse when the wait is caused by graphics or pop-ups hat you'd

> rather not see. Finally, there's a solution.

>

> It's called AtGuard, an award-winning application that boosts your omputer's

> performance, privacy, and protection online. Try it now from ealNetworks,

> risk-free, for only $14.95.

>

> AtGuard is designed to speed up Web page downloads -- by up to six imes, the

> company claims -- and lets users set up a personal firewall that can

> selectively block graphics, cookies, and other widgets.

>

> Steve Banfield, general manager for the RealPlayer group, said that he

> company had no intention of undermining its clients' business, and hat its

> availability "was just a case of the e-commerce guys saying, 'this is  cool

> product that our customers might like.'"

>

> "We still make money on banner ads, and we're not so stupid to make hat part

> of our revenue model go away," he explained. "At the end of the day, I hink

> most people realize they have two options: ad-free content, � la HBO, r they

> can watch ads and have that support what they are doing."

> It's not cheap to be in the Webcasting business these days. RealNetwork's

> servers <http://www.real.com/solutions/internet/order.html#order>cost about

> US$28,000 to support 400 users and about $70,000 to support 1,000 users.

>

> Charles Arruda, a senior vice president at

> <http://www.channelseek.com>ChannelSeek, has already built a software tool

> that thwarts ad-blocking software by redirecting browsers to another site

> that includes the ad. Arruda voiced his concerns about the ad-blocking

> software last week, and said that Webcasters already have enough trouble

> supporting their business without software that would cut into ad

> impressions.

>

> "As you can see, it can get real expensive -- just 400 users, not much in

> Internet audience terms, [costs] $30,000," he said in an email. He wasn't coy

> in pointing out that Microsoft and Apple Computer offer similar products to

> RealNetworks for far cheaper or for free.

>

> "You can imagine the licenses required by House of Blues or Rolling Stone,

> who sometimes have 40,000 concurrent viewers," Arruda said. "That's why some

> of these guys like House of Blues are gradually moving to MS Media Server."

>

> So why hasn't this software -- which kills ads dead in their tracks and

> speeds up page downloads -- been adopted by more people? After all, it's been

> around as shareware for almost as long as banner ads, which sprung up on the

> Web in 1994.

>

> One reason is the general reluctance to download anything resembling a

> plug-in.

>

> "I think part of it is getting the word out," said Anne Marshall, head of

> marketing for the AtGuard product. "We can't buy advertising. Nobody will

> take our money, but we've had really good press coverage.

>

<http://interactive.wsj.com/articles/PersonalTechnologyCenter.htm>Walter


> Mossberg reviewed it and we saw a huge spike," she said.

>

> But ad-blocking software may have its day yet, as behemoths like

> <http://www.siemens.com>Siemens promote it as a bandwidth-saving tool for

> large corporations. The company's browser plug-in,

> <http://www.siemens.de/servers/wwash/wwash_us.htm>WebWasher removes ads on Web

> pages, filters pop-up windows and animated images, and "saves up to 45

> percent network bandwidth," according to the company. The price? Free.

>

> Tom Britt, president of ChannelSeek, said that eventually there will be

> different types of business and advertising models on the Web to support

> content and information sites. But that time hasn't arrived.

>

> "For people that use Real servers, the Webcasting model is about banner

> impressions. Not many are selling ads in streams yet. For Real to come out

> with this is encouraging people to put ads in streams," he said. "There's no

> doubt it will happen, but I don't think it's Real's place to push the buttons

> for the wrong reasons. They're not helping their customers at all."

>

> But Real's Banfield isn't worried about the impact of ad-blocking software,

> pointing out that only tech-savvy users will install it.

>

> "I don't think we set a precedent. After the uproar, we learned a lesson and

> realized that we shouldn't promote it like this [with email notifications].

> It's a sensitive topic, so we have to be careful," he said.

>

> Related Wired Links:

>

>

>

<http://r.wired.com/r/10025/http://www.wired.com/news/news/technology/stor

> y/19492.html>Less Ad Money Spent Online

> 4.May.99

>

>

>

<http://r.wired.com/r/10025/http://www.wired.com/news/news/technology/stor

> y/19437.html>RealNetworks Has a New Tune

> 3.May.99

>

>

>

<http://r.wired.com/r/10025/http://www.wired.com/news/news/technology/stor

> y/18115.html>3-D Images, Without the Glasses

>

>

<http://r.wired.com/r/10025/http://www.wired.com/news/news/culture/story/1

> 6449.html>It's More Real than Ever

> 23.Nov.98

>

>

>

<http://r.wired.com/r/10025/http://www.wired.com/news/news/technology/stor

> y/15289.html>RealNetworks Video Steps Up

>

>

<http://r.wired.com/r/10025/http://www.wired.com/news/news/technology/stor

> y/11973.html>RealNetworks Unveils Its Next Generation

>

>

> Have a comment on this article?

>

<newsfeedbackwired [dot] com (mailto:newsfeedbackwired [dot] com)>Send it.

>

>

>

> <http://www.wired.com/home/copyright.html>Copyright � 1994-99 Wired

Digital

> Inc. All rights reserved.


--

++++++++++++++++++++++++++++++++++++++++++++++++

    Tim Hayward. Senior Consultant. e:HHCL.

Kent House,14-17 Market Place, Gt Titchfield St,

     London, W1N 7AJ. Tel +44-171-915-7579.


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