Tuesday, June 21, 2011
Bootstrapping the CNN of tech: The story of TWiT
Bootstrapping the CNN of tech: The story of TWiT
By Janko Roettgers
It all started with boredom. Leo Laporte had a few gigs with TV and radio networks back in 2005, but his work schedule left him with nothing to do half of the month. So he started an audio podcast called This Week in Tech, also known as TWiT. He asked listeners for donations, which allowed him to hire production help and add additional shows. And then, one day, he told his then-bookkeeper Lisa Kentzell about his real goal: to become the CNN of tech.
“I said: Okay, let’s do it,” recalled Kentzell when I met her and Laporte in the TwiT cottage in Petaluma, California last week. Kentzell is now the CEO of TWiT, and the company is ready to take the next big step towards its ambitious goal in July with the move into a spacious new studio built with a 24/7 live video operation in mind.
Check out this video of Leo Laporte and Lisa Kentzell showing off their new studio:
The new space is only a couple blocks away from the old studio, but in a way, the two studios are worlds apart. The old TWiT cottage, which has been Laporte’s home base since 2005, looks like your grandma’s small old summer house taken over by a bunch of geeks. Too many geeks, actually. The 18 staffers are literally bumping into each other all the time. The new studio, on the other hand, will have multiple sets, 40 cameras, state of the art tech and lots of room for future expansion.
The move is also as sign of TWiT doubling down on live video. It’s a ambitious proposition, in part because most of its audience still thinks of TWiT as a podcast network. Kentzell told me that TWiT sees about 5 million downloads every month. Live is harder to track, she said, but still much smaller.
“The live audience isn’t here yet,” admitted Laporte. “It’s a big bet on the future.” And live is expensive: TWiT recently had to shut down the live feed of its Roku channel because of exploding bandwidth costs. However, Laporte believes that these things will eventually sort themselves out with bandwidth prices going down.
Taking a step back when things get too expensive is also a part of the TWiT way of doing business. Laporte and Kentzell thought about moving to San Francisco with the new studio, but decided to stay in Petaluma to get more bang for their buck. The company only spends as much as it can afford at any given time, and has been entirely bootstrapped from day one, declining many opportunities for outside funding. “We are very committed to bootstrapping,” said Laporte. Kentzell agreed: “We wanted to have full creative and financial control.”
Speaking of Kentzell, she’s one of the lesser-known folks on the TWiT team, but Laporte couldn’t speak more highly of her. “It really wasn’t a business until Lisa came along,” he told me. Laporte initially hired her to do his books; he soon discovered that she was outsourcing the actual bookkeeping to a whole team she managed. Impressed, he convinced her to bring some of that leadership to TWiT. Laporte credits her for doubling revenue every year in the past few years, up to the tune of $3 million in 2010.
Much of that money comes from advertising these days, which is brought in by an external sales team. Initially, TWiT was entirely donation-based, with listeners shipping in as much as $20,000 per month. The company is relying on some of that loyalty to finish its new studio, which will cost about $850,000, by selling commemorative bricks to fans. “Donations give people a feeling to be part of it,” said Laporte.
So what’s next for TWiT? 24/7 live streaming is one goal, a satellite bureau in New York is also in the cards. Laporte also wants to hire more talent and add more shows after poaching broadcaster Tom Merritt and producer Jason Howell from CNET last year. But he doesn’t believe in branching out too far. “I’m not trying to get bigger, I’m trying to serve our niche better,” he said, adding that he’s confident to have a good sense of the content that will be popular. “I really understand our audience. I am one of them.”
And as for the ambitions to become the CNN of tech, Laporte says it’s not just a numbers game. He may never reach as many simultaneous viewers as the cable channels, but he believes TWiT can be just as relevant. His team will have succeeded once “a breaking news story happens and people turn to us,” he explained. Getting there may take years, and millions of dollars that Laporte and Kentzell intend to make the old-fashioned way – through bootstrapping. Said Kentzell, “It’s a little risky, but I think it’s worthwhile.”
By Janko Roettgers
It all started with boredom. Leo Laporte had a few gigs with TV and radio networks back in 2005, but his work schedule left him with nothing to do half of the month. So he started an audio podcast called This Week in Tech, also known as TWiT. He asked listeners for donations, which allowed him to hire production help and add additional shows. And then, one day, he told his then-bookkeeper Lisa Kentzell about his real goal: to become the CNN of tech.
“I said: Okay, let’s do it,” recalled Kentzell when I met her and Laporte in the TwiT cottage in Petaluma, California last week. Kentzell is now the CEO of TWiT, and the company is ready to take the next big step towards its ambitious goal in July with the move into a spacious new studio built with a 24/7 live video operation in mind.
Check out this video of Leo Laporte and Lisa Kentzell showing off their new studio:
The new space is only a couple blocks away from the old studio, but in a way, the two studios are worlds apart. The old TWiT cottage, which has been Laporte’s home base since 2005, looks like your grandma’s small old summer house taken over by a bunch of geeks. Too many geeks, actually. The 18 staffers are literally bumping into each other all the time. The new studio, on the other hand, will have multiple sets, 40 cameras, state of the art tech and lots of room for future expansion.
The move is also as sign of TWiT doubling down on live video. It’s a ambitious proposition, in part because most of its audience still thinks of TWiT as a podcast network. Kentzell told me that TWiT sees about 5 million downloads every month. Live is harder to track, she said, but still much smaller.
“The live audience isn’t here yet,” admitted Laporte. “It’s a big bet on the future.” And live is expensive: TWiT recently had to shut down the live feed of its Roku channel because of exploding bandwidth costs. However, Laporte believes that these things will eventually sort themselves out with bandwidth prices going down.
Taking a step back when things get too expensive is also a part of the TWiT way of doing business. Laporte and Kentzell thought about moving to San Francisco with the new studio, but decided to stay in Petaluma to get more bang for their buck. The company only spends as much as it can afford at any given time, and has been entirely bootstrapped from day one, declining many opportunities for outside funding. “We are very committed to bootstrapping,” said Laporte. Kentzell agreed: “We wanted to have full creative and financial control.”
Speaking of Kentzell, she’s one of the lesser-known folks on the TWiT team, but Laporte couldn’t speak more highly of her. “It really wasn’t a business until Lisa came along,” he told me. Laporte initially hired her to do his books; he soon discovered that she was outsourcing the actual bookkeeping to a whole team she managed. Impressed, he convinced her to bring some of that leadership to TWiT. Laporte credits her for doubling revenue every year in the past few years, up to the tune of $3 million in 2010.
Much of that money comes from advertising these days, which is brought in by an external sales team. Initially, TWiT was entirely donation-based, with listeners shipping in as much as $20,000 per month. The company is relying on some of that loyalty to finish its new studio, which will cost about $850,000, by selling commemorative bricks to fans. “Donations give people a feeling to be part of it,” said Laporte.
So what’s next for TWiT? 24/7 live streaming is one goal, a satellite bureau in New York is also in the cards. Laporte also wants to hire more talent and add more shows after poaching broadcaster Tom Merritt and producer Jason Howell from CNET last year. But he doesn’t believe in branching out too far. “I’m not trying to get bigger, I’m trying to serve our niche better,” he said, adding that he’s confident to have a good sense of the content that will be popular. “I really understand our audience. I am one of them.”
And as for the ambitions to become the CNN of tech, Laporte says it’s not just a numbers game. He may never reach as many simultaneous viewers as the cable channels, but he believes TWiT can be just as relevant. His team will have succeeded once “a breaking news story happens and people turn to us,” he explained. Getting there may take years, and millions of dollars that Laporte and Kentzell intend to make the old-fashioned way – through bootstrapping. Said Kentzell, “It’s a little risky, but I think it’s worthwhile.”
Paul Nicklen: Tales of ice-bound wonderlands
About this talk
Diving under the Antarctic ice to get close to the much-feared leopard seal, photographer Paul Nicklen found an extraordinary new friend. Share his hilarious, passionate stories of the polar wonderlands, illustrated by glorious images of the animals who live on and under the ice.
Video: A Look At High-Res 3D Laser Scanning With Makerbot’s Bre Pettis
In the olden days, when you wanted a bust made, you hired some fancy sculptor to come to your house and sit with you for hours a day until, months later, you had a handsome marble or ceramic bust. Now, however, you can get a bust made in a few minutes using laser scanners and Makerbot rapid prototyping machines. Ain’t progress wonderful?
Makerbot’s Bre Pettis invited me over to his new storefront in Brooklyn to build a bust for his upcoming New York Notables event in July. I got to join folks like Cory Doctorow and Moot (in miniature form) as we were scanned into a PC using a Polhemus laser scanner. To grab my physical details they dusted me talcum powder and then sat me down for a good two minute scan. The process was quick and painless and the results, as you see in the video below, were impressive.
We could have printed out my head in a few minutes but Bre and the gang were pretty backed up so they’re going to let me know when my tiny little head appears in their machine, ready for eventual deification by future generations.
Mitnick starts talking about LulzSec at about the 4 minute mark in the following video via CBS News’ What’s Trending.
On the other hand, LulzSec may inspire other hackers. Future groups may leave the cockiness at home and quietly do a lot more damage. It’s not like LulzSec’s potential demise will do much to shore up security efforts in various companies.
Microsoft Looks to Mango to Make Windows Phone a Better Communicator
With Windows Phone 7, Microsoft was basically looking to get back into the smartphone conversation. With the next version, codenamed Mango, the company hopes to prove itself a social butterfly.
Improved communications, along with better Web browsing and more powerful apps, were the key focal points as the company looked to make the first major update to its revamped phone software.
On Tuesday, the company is announcing a host of new communications options that are among 500 new features that Microsoft is adding to its phone operating system in the “Mango” update due out later this year. The company is outlining the changes and sharing other details at a press event in New York that is just getting underway. (It’s being Webcast and AllThingsD has live coverage here).
As part of its effort to be a better communicator, Microsoft is adding support for Twitter as well as tighter integration with Facebook and an integrated conversation feature that allows chats to move between Facebook Chat, Windows Live Messenger and text message all within a single “thread.” The company is also adding an option to let users combine contacts into various groups that can be reached en masse via email or text message. On the email side, customers will now have the option to combine views from various email accounts into a single inbox as well as view messages in either standard or conversation view.
While apps are important, Microsoft is hoping to convince friends that when it comes to keeping in touch, it is better to integrate multiple modes into a single hub than to have to open a different program for each means of communication.
“Our friends aren’t apps—they are people,” Sullivan said.
That said, even with Mango, users will have to do some switching. The feature that lets discussions move from chat to text message doesn’t extend to email, while Twitter users will still need a separate program to handle more advanced tasks.
Still, Microsoft hopes integrating more options into its People hub will help the company’s products stand out from rivals. Sullivan noted that Microsoft’s research shows people spend 2.5 hours a day socializing on their phone–more time than is spent eating. “It’s pretty dramatic,” he said.
The Mango release of Windows Phone is due to show up on phones later this year. In addition to current hardware partners that are planning new phones, Mango will work on existing Windows Phone devices and will form the basis for Nokia’s first crop of Microsoft-powered phones.
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