Financial services – a huge network effect?

According to Wikipedia, when "a network effect is present, the value of a product or service is dependent on the number of others using it". More precisely (for a positive effect): each new user increases, if only slightly, the value of the service for all existing users. Since I have been having a minor spot of trouble with a Bitcoin wallet provider, I have unfortunately realized that this network effects exists rather dramatically for financial services in the following obvious sense. If the remote and electronic financial service provider denies me access to my funds (which, admittedly, it does less frequently than my brick-and-mortar bank) then the immediate feeling is one of distinct discomfort that there will not be a substantial mob in my immediate vicinity to storm the (virtual) bank. Perhaps it matters little that the mob is distributed all over the planet but in this case one remains faced with the issue of (a) finding the other customers; and (b) finding something to storm.

Microsoft Azure "Hotel California" newsletter

It has been days now and I remain unable to unsubscribe from the Microsoft Azure newsletter and basically their response is to tell me that I should reboot...

Google's new penchant for webscraping

My understanding of webscraping is that it is a dodgy practice whereby one populates one's website with content simply retrieved from other sites (normally automatically, by software sometimes called "robots") instead of creating one's own. One interesting case in this regard was eBay v. Bidder's Edge, 100 F.Supp.2d 1058 (N.D. Cal. 2000) in which eBay obtained an injunction against a company that had basically copied the eBay auction content. The legal doctrine of trespass to chattels (possibly not well known in South Africa) applies. The recent Johannesburg High Court battle between News24 and Moneyweb touched on related issues.

This is actually very similar to what we do when we "share" items on Facebook but in that case, at least, it is clear why it happens and there is acknowledgement. What Google has started to do, I think, falls somewhere between these forms of sharing and scraping. 

Google searches have been returning more content and more targeted content from the top-rated search result in a special "Here's your answer!" box.

In short, Google Search tries to provide sufficient information to obviate the need for the user to actually visit the website indexed by the search engine. In the long run, this is obviously not really a model for sustaining a rich online environment but I would agree that the legal framework around intellectual property and copyright needs to adapt to the digital and online world. Google is certainly not afraid of murky water, given the rampant unlicensed redistribution happening on its YouTube platform.

It would be interesting to see how long it is before someone sues. French publishers, perhaps?

• Google ends standoff with French publishers, commits to €60 million 'innovation' fund
• Moneyweb loses plagiarism case against Media24

Viber robo-calling has started

I got my first robo-call on Viber today – ouch! A disembodied yet recognisably Anglo-Boer male voice wanting to sell... insurance. Please stop! ;-) The best solution is of course to move to a system where users can charge for incoming calls with differential rates.

Tripadvisor se hoërskoolopstelressensie-probleem

Baie van ons gebruik van tyd tot tyd Tripadvisor. In die afgelope tyd het berigte begin verskyn oor die probleem van onegte resensies op Tripadvisor en indien 'n mens in gedagte hou dat sowat 260 miljoen mense dit elke maand gebruik, dan kan 'n mens verstaan waarom daar 'n besigheid is in onegte resensies. Dink eenvoudig daaroor: wie gaan 'n resensie plaas? Sekerlik in die eerste plek mense wat 'n slegte ervaring gehad het. Amper niemand met 'n doodgewoon goeie ervaring gaan op Tripadvisor skryf, tensy hulle ly aan gevorderde restourantressensent-waan nie. Gewoonlik doen mense sulke goed op Facebook!

Ek het vinnig gaan kyk na die Tripadvisor-opmerkings vir 'n restourant in Pretoria (daar in die top-10) wat ek ken. Die lofsange van mense wat oënskynlik net één ressensie op Tripadvisor het, is opvallend. Dit lees ook soos hoërskoolopstelle: "[t]hey cater for young and old and they have a play park for kids with supervision." Die een hier regs lyk ietwat meer eg en minder generies maar daar is sekerlik baie maniere om hierdie te reël... Die hoofprobleem is dat daar amper geen insentief is om 'n normaal-positiewe resensie te skryf nie, tensy 'n mens geweldig verveeld is. Ek sou amper so ver gaan om myself to probeer oorreed om geen aandag aan goeie resensies te gee nie en slegs te kyk na die slegtes. Miskien is daar wel 'n gepaste markmeganisme om hierdie uit te sorteer maar solank mense vrywillig ressensies skryf of plaas (en skaars hoef aan te toon dat hulle eers wel by 'n plek was), gaan daar probleme wees.