This blog post is a response to this article on re/code.

The media dubbed “Anti-Facebook,” Ello, just raised $5.5 million by venturer capitalists like Foundry Group. Ello attracted the media’s and the internet’s attention last month in September when it was first released as an ad-free social network. The purpose of this website isn’t to simply remove the ads that some may find annoying but rather to value the privacy of each individual user.

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To keep this contract with the user, the makers of Ello filed a legally binding charter that forbade them putting up advertisements and selling user data. It makes me wonder whether this site will succeed or just become the next Google+. CEO, Paul Budnitz. claims they already have over a million users and three million on the waiting list but Google+ also bragged an incredible 25 million users after 24 days since launch.

With the signed agreement that prevents Ello from running advertisements, I, and I’m sure so are investors, are concerned how this company will possibly earn any money. A brave move indeed, but I can’t wait for the company to release their business model.

After studying so many firms, I am relieved to find out a company that actually cares for the users privacy and safety as an individual. By sealing this anti-advertising deal, Ello demonstrated signs of business ethics and corporate social responsibility. The social issue of privacy has been a public concern for a while now since the leak about the NSA and this may be one the limited companies that consumers may actually trust.

This blog post is a response to Shoalts’ article in The Globe And Mail

Yes, you heard it right, it is now Roger’s Hockey Night in Canada. After a monster payout to the NHL for broadcast rights for the next 12 years by Rogers’ for $5.2 billion, CBC gave up the hockey culture it once formed 62 years ago with Saturday Hockey Night in Canada. Although the transition will likely be seamless (especially when Rogers’ will still be using the CBC studio), all the money will go directly to Rogers now. CBC will retain a fraction of its revenue by renting out the office space/studio and staff. A familiar face will now host the show: George Stroumboulopoulos. Ron Maclean will remain in Coach’s Corner with Don Cherry but will host Rogers’ Sunday Hometown Hockey. Though this story is predominantly about hockey, it takes into perspective that hockey is more of a business than a sport. The meltdown on this particular CBC department cost a loss of 657 total jobs and a $130 million budget cut because of the companies’ lost of $250 million earlier.  With companies with a larger capital and more power in this market, CBC is facing a large threat in its professional sports broadcasting department due to their decreasing government funding (lack of opportunity) . The budget at CBC has been shrinking and thus lost one of their greatest strengths: broadcasting rights to CFL, NHL, and even World Cup Soccer matches.

The faces of the new Hockey Night in Canada from Rogers. (from left: Ron Maclean, George Stroumboulopoulos, Don Cherry)

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This blog post is a response to Rosenblum’s blog post

The business model that is keeping Amazon.com in business is keeping them from being profitable. According to the Wall Street Journal, Amazon.com is reportedly opening a retail store in New York City in hopes to increase their profits. It’s hard to believe, but if you think about it, Amazon is barely profitable. With it’s low cost items and delivery, their revenue comes from Amazon Prime membership and a fraction of every item sold. This is a very important issue because although Amazon accounts large portion of America’s online transactions, they must rely on retail stores in order to become profitable. I find it puzzling to comprehend what Amazon will use this physical location for besides pickup because it is impossible to provide nearly as much variety as they do online in person. The amount of inventory Amazon.com would need to have in their physical location would go against the business plan of Dell. Rosenblum suggested that Amazon can now play the role of the logistic providers in Manhattan, keeping the money they would have otherwise placed in Fedex or UPS’s pocket. Thus they can supply cheaper and quicker same day deliveries.  The amount of Sears retail locations closing gives Amazon a selection of cream of the crop locations that can be extremely advantageous to their operations. It is comforting to see that even the King of the Online Marketplace must resort to the most conventional way of “long-term and sustainable profitability” through physical locations and a digital presence because it shows that human-to-human interactions still got a couple more years to go.

Amazon’s options to be profitable are limited. Perhaps this will be the future of Amazon.com: a dual presence in physical and online retail.

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The current situation with the controversial Northern Gateway Pipeline is a prime example of a threat to a firm’s business. The proposed business plan consists of a 1,177 kilometre long pipeline that carries oil from the Alberta tar sands, across British Columbia so it could be exported to foreign countries to refine. The problem with this $6.5 billion project, despite creating numerous employment opportunities and a boost to the receding economy, is it goes across many Aboriginal reserves. Since the Natives considers the land to have a historical, spiritual, and resourceful value, a conflict has risen between the parties involved in this deal. I agree with the Natives on holding off the pipeline because the province cannot afford to risk the chances of a rupture. What defines this beautiful province is its nature and approving this project will tarnish that exact distinction. Since Enbridge has already offered royalties to the Aboriginal groups that are disapproving, Enbridge should consider making the pipeline more safe or take a route that wouldn’t have as big as impact spill were to occur or that didn’t traverse Native reserves. This standoff by Natives I feel is very important because it proves that large corporations can’t do anything they want even with money.

The results of an oil spill on wildlife

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This is a response to an article on Forbes.

With the record-breaking IPO of Alibaba last month, it left many pondering on why they hadn’t invested in it sooner. Terry Yang, co-founder of Yahoo, won’t be asking that question because he “made the most lucrative bet in Silicon Valley History.” The $1 billion dollars that he invested in Ma’s Alibaba on behalf of Yahoo back in 2005, made them one of the largest share-holders at 30%. Yahoo later sold off a chunk last year at $13/share but the 16% stake they still own is valued at over $36 billion. Yang investment is a redemption from being ousted from his own company when he refused to sell Yahoo to Microsoft while his company slowly lost to Google. His own company AME also primarily invests in tech startups including Evernote and Tango. What we can appreciate from Yang’s successful business ventures is his ability to see the potential of a company. When he first met Ma (as a tour guide for the Great Wall), Alibaba was still run from its HangZhou apartment. Despite Yahoo evidently losing to Google in the race of being a No. 1 search engine, Yang was able to move on from the past and form his new company that he claims he is “able to do things at [his] own pace, make mistakes” and happier.

In response to “The TV Model is Broken”

Cable television has not longer been a staple in every household for entertainment. There has been a trend of declining customers in cable -TV services and service providers. In fact, according to the National Cable Television Cooperative reported that small companies representing 53,000 customers have gone out of business. This is mainly due to the fact that networks are demanding more money to license their channels. Viacom recently demanded a 50 percent increase in payments forcing mid-size companies and lower to drop Viacom channels. As a consumer that has been watching all TV programme now on my computer, I believe network companies need to consider that their price and convenience is driving business away. Cable companies often require you to purchase a batch of channels when you only watch the one or two thats included. However, if you pay a la carte, that will run you almost as much as the package. This article doesn’t affect me as much since I would only watch TV for live sports which is already possible to view on the computer for free. The pricing models have been responsible for the recent success of online streaming services including Netflix, HBOGo, and WatchESPN. With less and less customers that watch TV, or pay for their TV programme in general, it is time for the major programmers to make viewing more affordable for both the cable companies and the consumers.