ClearSpring - widgets with a business model for content owners

Clearspring, a widget distribution company, just signed a big deal to be the exclusive widget platform for NBC. Widgets are tiny applications that can be pasted into a web site, blog, or personal page.

What are widgets? I have several examples of widgets on my blog; things like Lijit (search), MyBlogLog (readers photos), Feedburner (subscriptions) , Sitemeter (traffic stats), and Criteo (blogroll). Other examples are things like stock tickers, news feeds, and of course, Google's AdSense widget which delivers ads to web sites and blogs.

So what is new about widgets? There are lots of different widgets and they have been around for a while. Most widgets are free services layered on top of other free services resulting in what I call the Remora Business Model. What is new here is that Clearspring widgets let the content owner control the content, how it is used, how it is monetized, and monitors the traffic and usage. Users are still free to copy & paste the widget anywhere so it spreads in a viral manner.

Most widgets are cute little tools without much business functionality. I really like MyBlogLog but I fail to see how it creates value or makes any money. As I have said before "free services layered on top of other free services are not a sustainable model". I think we will be seeing more widget platforms like Clearspring that allow syndication of content and services that also enable a monetization model.

Serendipity - Yesterday I was at Novak Biddle Venture Partners talking with Jack Biddle, Phil Bronner, and other partners about their portfolio companies and how Microsoft could work with them. Jack and Phil were really enthusiastic about Clearspring. They recently invested in the company. I hadn't heard of Clearspring before but told them I was interested and would learn more about it when I got back home. Today they make a big announcement and my homework last night paid off. That is the way this business works...serendipitous and at light speed.

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