Friday Link List

Hello dear reader, hope your turkey day was a pleasant one.

Short link list this week, but these two are worth a peek.

1. Patience Is a Network Effect {nicholas carr}.

If you want to see how technology shapes the way we perceive the world, just look at the way our experience of time has changed as network speeds have increased. Back in 2006, a famous study of online retailing found that a third of online shoppers (those with broadband connections) would abandon a retailing site if its pages took four seconds or longer to load and that nearly two-thirds of shoppers would bolt if the delay reached six seconds. The finding became the basis for the Four Second Rule: People won’t wait more than about four seconds for a web page to load. In the succeeding six years, the Four Second Rule has been repealed and replaced by the Quarter of a Second Rule. Studies by companies like Google and Microsoft now find that it only takes a delay of 250 milliseconds in page loading for people to start abandoning a site. “Two hundred fifty milliseconds, either slower or faster, is close to the magic number now for competitive advantage on the Web,” Microsoft search guru Harry Shum observed earlier this year. To put that into perspective, it takes about 400 milliseconds for you to blink an eye.

2. Making Cents {pitchfork; via andrew sullivan}.

Fascinating article about all aspects of the streaming music biz, from Damon Krukowski of Galaxie 500 and Damon & Naomi.

Consider Pandora and Spotify, the streaming music services that are becoming ever more integrated into our daily listening habits. My BMI royalty check arrived recently, reporting songwriting earnings from the first quarter of 2012, and I was glad to see that our music is being listened to via these services. Galaxie 500’s “Tugboat”, for example, was played 7,800 times on Pandora that quarter, for which its three songwriters were paid a collective total of 21 cents, or seven cents each. Spotify pays better: For the 5,960 times “Tugboat” was played there, Galaxie 500’s songwriters went collectively into triple digits: $1.05 (35 cents each)….

But here’s the rub: Pandora and Spotify are not earning any income from their services, either. In the first quarter of 2012, Pandora– the same company that paid Galaxie 500 a total of $1.21 for their use of “Tugboat”– reported a net loss of more than $20 million dollars

…These aren’t record companies– they don’t make records, or anything else; apparently not even income. They exist to attract speculative capital. And for those who have a claim to ownership of that capital, they are earning millions– in 2012, Pandora’s executives sold $63 million of personal stock in the company. Or as Spotify’s CEO Daniel Ek has put it, “The question of when we’ll be profitable actually feels irrelevant. Our focus is all on growth. That is priority one, two, three, four and five.”