Technology
Are You Willing to Pay to Watch Video Clips Online?

In this photo taken Monday, March 23, 2015, Vessel CEO and co-founder Jason Kilar, left, and co-founder Richard Tom pose for a photo at their headquarters in San Francisco. (AP Photo/Eric Risberg)
MICHAEL LIEDTKE, AP Technology Writer
SAN FRANCISCO (AP) — Would you pay to see some of the Internet’s best video clips first? Vessel, a new service trying to change the way that short video pieces make money on the Internet and mobile devices, is betting on it.
Instead of free-for-all distribution supported solely by advertising, Vessel will charge $3 per month for exclusive early access to clips of musicians, sporting events, comedians and many other forms of entertainment not available on YouTube or any other digital video service for at least three days. CEO Jason Kilar, formerly head of Hulu Plus, believes Vessel’s model will be able to pay video producers about $50 per 1,000 views of their clips on the site. That compares with just $2.20 per 1,000 views of ad-supported video at sites such as YouTube, Kilar says.
The extra money, in theory, will provide digital video producers with the means and incentive to create even better content that will prod more people to subscribe to Vessel. The same “virtuous cycle” has enabled Internet video service Netflix to finance more of its own original programming and pay more money to license compelling entertainment while its audience has nearly tripled to 57 million customers from 20 million in the past four years.
“We think this is going to be a really big deal, like the advent of cable-and-satellite television in the 1970s,” Kilar, 43, says of Vessel.
YouTube, which is owned by Google Inc., says Kilar’s estimates are wrong, but declined to reveal its average payout per 1,000 views. Payments to YouTube partners have increased by at least 50 percent in each of the past three years, the company says. Research firm eMarketer Inc. estimated that YouTube’s total ad revenue last totaled $7.6 billion and about $4.6 billion was paid out to YouTube’s partners.
The concept, which has been in beta testing for two months, debuts Tuesday. Anyone who signs up with Vessel by 3 a.m. EDT Friday will receive a one-year subscription for free.
Vessel’s ambitions sound like wishful thinking to Forrester Research analyst Jim Nail, who doubts many people will pay to watch a video that will be available for free within a few days.
“That kind of restriction only works when you have content that people are really knocking down the doors to see,” Nail says. “It is going to totally come down to what kind of content that they can get. Unless they have the content that justifies paying $3 a month, nothing will save them.”
Vessel so far has about 70,000 video clips separated into about 160 categories, including sports, comedy, music, video games and food. Many clips are free and supported by ads, just like most video on YouTube. Vessel’s subscription side features videos from about 130 contributors. They include Emmy Award-winning actor Alec Baldwin, who is showcasing “Love Ride,” a series featuring him dispensing relationship advice in the back seat of taxis, and the online comedy duo of Rhett McLaughlin and Link Neal, who have more than 3 million subscribers on their YouTube channel.
Machinima CEO Chad Gutstein anticipates a large audience will pay for early access to the video gaming specialist’s clips because video game enthusiasts “are more engaged and more obsessed with what they are doing than anything I have ever experienced. They just want to be there first.”
Before Vessel, Kilar spent five years running online television streaming service Hulu, which was launched in 2007 by a group of TV networks trying to counter YouTube’s popularity. By the time Kilar stepped down in 2013, Hulu’s premium Plus service had attracted about 6 million subscribers, though it never mounted much of a challenge to YouTube, where about 300 hours of video is posted per minute.
Since Kilar and another former Hulu executive Rich Tom started Vessel last year, the San Francisco startup has raised $77 million from two venture capital firms, Greylock Partners and Benchmark Capital, and Amazon.com Inc. CEO Jeff Bezos.
Copyright 2015 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Antonio Ray Harvey
Calif. Black Chamber of Commerce Is Helping to Expand Broadband Access
The California Black Chamber of Commerce (CBCC) is joining hands with state government to help narrow the Golden State’s Digital Divide for nearly two million houses without access to broadband. In partnership with the California Department of Transportation (Caltrans) and the California Department of Technology (CDT), the CBCC will help push the state’s Middle-Mile Broadband Initiative – a $3.25 billion effort to enhance internet connectivity –under the “Broadband Technology Small Business Initiative.”

Antonio Ray Harvey,
California Black Media
The California Black Chamber of Commerce (CBCC) is joining hands with state government to help narrow the Golden State’s Digital Divide for nearly two million houses without access to broadband.
In partnership with the California Department of Transportation (Caltrans) and the California Department of Technology (CDT), the CBCC will help push the state’s Middle-Mile Broadband Initiative – a $3.25 billion effort to enhance internet connectivity –under the “Broadband Technology Small Business Initiative.”
The initiative was created to provide a durable, open-access network that would bring high-speed broadband service to unserved and underserved communities, regardless of technology used, on equal economic and service terms.
“We are the lead agency working with Caltrans,” said Jay King, the President and CEO of CBCC. “We’re front of the line making sure small businesses are included, matchmaking is taking place, and that we meet the goal and the deadline of making sure that every Californian has access to digital connections.”
The initiative connects CBCC’s statewide membership of 5, 500-plus small African American business firms and non-Black entities to the benefits of broadband technology, according to King.
The state also allows small businesses to bid as contractors for projects related to strengthening broadband connections to improve access to education, health services and employment opportunities throughout the state.
According to the Public Policy Institute of California (PPIC), in 2020, 10% of California residents reported not having a desktop, laptop, or other computing device at home.
In addition to a lack of functional units for computation, access was especially limited among low-income (23%), less-educated (16%), Black (15%), and Latino (15%) households, PPIC presented in its June 2022 fact sheet.
So far, California has invested $6 billion through the legislation that created the Middle Mile Broadband Initiative, Senate Bill (SB) 156. The legislation, which Gov. Gavin Newsom signed in 2021, expands broadband infrastructure, addresses affordability, and promotes digital literacy. California will receive approximately $100 million more to enhance its broadband infrastructure through the federal Infrastructure Investment and Jobs Act.
Middle-mile refers to the fiber optic infrastructure that makes internet connections possible by transmitting large amounts of data over long distances at high speeds through high-capacity cables. The complete design features a proposed system of 10,000 miles of infrastructure, covering the entire state.
Although federal dollars are involved in the project, King stated that state projects are “race neutral” to stay in compliance with California’s Prop 209 law that prohibits “preferential treatment” based on race, sex, color, ethnicity, or national origin.
“We know the importance (of closing the gap) not just in the Black community but in all marginalized communities,” King said. “The digital divide will only continue to hurt our country and state if we don’t ensure that everybody has full access to the digital world.”
CBCC’s Director of Small Business Willard “Will” McClure said that the design and construction of the middle-mile network is monitored by the Middle-Mile Advisory Committee (MMAC). The MMAC monitors the development and construction.
According to McClure, the California Emerging Technology Fund (CETF), an organization providing leadership in expanding broadband access statewide, offers “five strategies” to close the digital divide. These include Civic Leader Engagement, Venture Philanthropy Grantmaking, Public Policy Initiatives, Public Awareness and Education, and Strategic Partnerships.
CETF’s network of more than 100 grantees have delivered digital literacy training to more than 800,000 residents and has assisted in providing internet connections to more than 250,000 low-income households in rural and remote areas, urban disadvantaged neighborhoods, and people with disabilities.
McClure said that the Middle-Mile project will be completely implemented by December 2026 but the work to close the gap really starts after the last fiber optic is installed. All participants must be “logged on with confidence,” he said.
“Once the access is available the problem is not over,” McClure said. “There’s confidence that comes with getting people to understand how to use it. Grandma doesn’t know how to download ZOOM.”
Last month, Federal Communications Commission (FCC) Chairwoman Jessica Rosenworcel joined Los Angeles Mayor Karen Bass to announce the campaign to increase enrollment in the Affordable Connectivity Program in Los Angeles at the Pio Pico-Koreatown Branch Library.
Qualifying households are eligible for a discount of up to $30 a month for internet service and discounts on devices through the Affordable Connectivity Program. The households can also get a one-time discount of up to $100 to buy a laptop, desktop computer or tablet from qualifying providers.
“For many households, the cost of groceries, gas and rent can eat up the monthly budget, putting internet access out of reach,” Rosenworcel said. “We want to do more to get out the word about this powerful program and reach families that may not know about this benefit.”
Education
UC Berkeley Computer Scientist Wins 2023 Guggenheim Fellowship
Venkatesan Guruswami, a Chancellor’s Professor in UC Berkeley’s Department of Electrical Engineering and Computer Sciences, is among 171 American and Canadian scholars selected as 2023 Guggenheim Fellows, the John Simon Guggenheim Memorial Foundation announced on April 6. The prestigious awards recognize scholars with impressive achievements who also show exceptional promise in fields ranging from the natural sciences to the creative arts.

By Public Affairs
Venkatesan Guruswami, a Chancellor’s Professor in UC Berkeley’s Department of Electrical Engineering and Computer Sciences, is among 171 American and Canadian scholars selected as 2023 Guggenheim Fellows, the John Simon Guggenheim Memorial Foundation announced on April 6.
The prestigious awards recognize scholars with impressive achievements who also show exceptional promise in fields ranging from the natural sciences to the creative arts.
“I’m really delighted and grateful to be chosen for this fellowship and honored to join its distinguished roster of past recipients,” said Guruswami, who is also a senior scientist at the Simons Institute for the Theory of Computing.
Guggenheim Fellows each receive a one-time grant of varying amounts to complete their research, books, or other projects. Guruswami, a theoretical computer scientist, will use the fellowship to continue his research into understanding and devising the most resource-efficient approaches to solving computational problems, and mapping the boundary between their tractable and intractable variants.
“Like Emerson, I believe that fullness in life comes from following our calling,” said Edward Hirsch, president of the Guggenheim Foundation and 1985 Fellow in Poetry, in a press release. “The new class of Fellows has followed their calling to enhance all of our lives, to provide greater human knowledge and deeper understanding. We’re lucky to look to them to bring us into the future.”
Bay Area
Mitch Kapor and Freada Kapor: Closing the Equity Gap for Communities of Color
Mitch Kapor and Freada Kapor are two pillars of the San Francisco Bay Area. More than this, they are visionaries who are helping construct the pathway for our nation’s economic future. The Kapors have spent the last decade developing a vision and practice to make the tech industry more diverse and inclusive.

By Conway Jones
Mitch Kapor and Freada Kapor are two pillars of the San Francisco Bay Area.
More than this, they are visionaries who are helping construct the pathway for our nation’s economic future.
The Kapors have spent the last decade developing a vision and practice to make the tech industry more diverse and inclusive.
Their new book, “Closing the Equity Gap: Creating Wealth and Fostering Justice in Startup Investing,” explains how their two institutions, Kapor Center and Kapor Capital, invest in seed-stage tech startups focused on closing gaps of access, opportunity and outcome for low-income communities and communities of color.
Their core belief is that all companies must make a positive impact.
“Loyalty to values is more important than loyalty to investors.” said Freada Kapor in her address to the Commonwealth Club of California last Monday.
The Kapors’ belief is that entrepreneurs who overcome obstacles in life are a far better predictor of long-term success than the schools they attend or the investment dollars they raise from friends and family.
“Mitch and Freada were both authentic and engaging in their presentation.” said Linda Parker Pennington, founder and CEO of Parker Pennington Enterprises, LLC. “They told us ‘how they’ve done well by doing good’ and how we can, too.” Parker Pennington continued.
“The investment work we do is what matters.” said Mitch Kapor.
“The Kapors’ investment formula is proven to help close these access, opportunity, and outcome gaps for low-income communities,” said Kenneth Johnson, videographer, community leader and Board Director of the San Francisco African American Chamber of Commerce. “We need to adopt their vision here in San Francisco.”
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