A Cross-Grid Content Store: An idea whose time has come?

This morning my thoughts drifted into thinking about the inevitable screw-over XStreetSL merchants are going to get real soon. Then I took a second look at a comment Imprudence viewer developer Armin Weatherwax left on that blog post(emphasis mine):

lol, I admit my thought is a bit far fetched... having those archives gives of course the possibility to exchange content in "new" ways, like from torrents or git repos. So maybe XStreet would have become less interesting for open content anyway - well, we'll never know.

Given not only the coming XStreetSL changes but also in light of the controversial third-party viewer policies and ToS "content trap", I now think Armin's idea isn't as far-fetched anymore. A far better solution than "torrents and git repos" would be an online store like XStreetSL, MetaLIFE, or Metaverse Exchange(the goals of MVX match the cross-grid store concept, but it currently just supports Legend City and SL) but would deal in content archived in the HPA format. This would kill a couple of birds with one stone:

• No need to deal with "magic boxes", which are prone to delivery failures whenever the region the box is hosted on fails for whatever reason, and potentially costs you sales.
• Easily make content in one virtual world, and be able to sell(not just give away) it to residents of any world that can use HPA-capable viewers such as Meerkat or Imprudence.

While these are excellent points for this idea, I can also see one point against it: The nature of content import at the moment circumvents the in-world permissions system(on import, you are the creator of the content as far as the system knows), as there is no content metadata to properly address it, which can lead to copyright infringement if not used responsibly. So as it is, it's a trade-off: sacrifice reach for control(walled garden), or sacrifice some control for reach(public park).

So, would this concept be feasibly possible? Ideas, thoughts, criticisms?

P.S.- Also, take a quick look at OpenSimWorlds and MyOpenSim as a couple of prototypes as how such a store might look like.

The axe falls, but when?

I just came across this blogorum thread where a resident decided to take one last look at the freebies on XStreetSL, knowing that they may disappear within the next few days.

The OP of course seen "junk that needed to be cleaned up, but quite some jewels", but that became irrelevant when the first replier asked a poignant question: "So when does the axe fall?"

What makes this question good is that, according to the original announcement, the freebie listing tax should be in effect by January 18th, and in the FAQ accompanying the announcement they stated residents will be given 2 weeks notice before the changes go in effect. There are four days left in the expected delivery time span and so far there have been no notices at all from the Lab. In fact, the Lindens have kept very quiet on the matter since Colossus Linden got burned in the blogorums(in two threads) after the announcement.

This has caused a bit of confusion and speculation about what will actually happen. Some say they have quietly backed down after feeling the backlash resulting in the increased prominence of third-party marketplaces. Others say that it's merely been delayed because of implementation problems. While I would hope for the former theory, I'm more inclined to believe the latter.

Why? It's quite simple, really. If the Lab finally decided to back down, no doubt they would loudly announce it in an attempt to recoup the losses incurred from the previous backlash, and to blunt the newfound popularity of XStreetSL's competitors. Since that has not happened, it's clear that the Lab is still in the process of putting the listing taxes in place, it's just taking longer than planned.

Regardless if the Lindens roll out the taxes this month, May, or whenever this year, I still believe I made the right choice and I will continue to boycott XStreetSL until this policy of pure greed is eliminated.

The XStreetSL Commerce Forums: A hotbed of creator/merchant elitism?

<rant>
Yesterday I checked up on the Commerce Forums to see if anything hopefully interesting or positive was being discussed. What I found was something absolutely disgusting: A merchant championing the total abolishment of Basic accounts and "No Payment Info On File" account status under the paper-thin guise of content protection.

This is another example of the elitist attitude that has been boiling over in the Commerce Forums since the XStreetSL listing taxes announcement. While the OP of that thread got tremendous and firm pushback, it has emboldened some to suggest other economically destructive ideas such as requiring a premium account to be able to sell things, and even creating a separate grid for free accounts.

This elitist hate of Basic accounts has to stop. Now. It is ill-conceived, misguided and ultimately destructive.

What the elitists fail to see is that Basic(and NPIOF) membership is what gets people into SL, as it's the easiest point of entry to a virtual world compared to some competitors, and as a result Basic accounts are extremely vital contributors to the economy(Hint to elitists: In other words they are your customers). The Premium account status is a carrot-and-stick proposition for Basic residents who want some relatively small perks(not counting Linden Homes) in exchange for a recurring fee to the Lab. Lording premium status over the entire grid will result in an economic disaster that will see Second Life crumble faster than the current XStreetSL exodus, leaving only the few elitists left to wonder what went wrong.

Nobody who loves SL(including the elitists) would want that to happen, but that is the direction this movement is pushing the Lab. The only way to stop it is to vigilantly keep pushing back until the elitists give up. So keep on pushing back, folks. Stand up for your right to be Basic and proud!(Disclaimer: I've been a Premium account for over 3 years, but I stand with many of my friends and customers who are Basic accounts as I know they are the heart and soul of SL, as Prokofy eloquently put it.)
</rant>

LL goes begging for banner ads, again

In an earlier post I talked about yet another piece of fallout from the XStreetSL listing taxes scandal: Banner ads on XStreetSL plummeted like a rock and the Lindens went begging to Solution Providers to fill in the gaps.

It seems that trick didn't work, since the Lindens are now extending a half-price ad offer to all merchants(well, those who still haven't jumped ship yet) for the holidays. Unfortunately, this will suffer the same problem that the SP offer had: What good is a half-off ad offer when the consumers are leaving the ad providers' site in droves? It doesn't matter if it's the holidays, the bottom line is what counts.

The Lindens are obviously trying to at slow the bleeding from XStreetSL, but they're applying relief to the wrong area, and they know it. Until Colossus and Pink publicly acknowledge that they royally screwed over customers and merchants, the result of this second round of begging will remain the same: FAIL.

More XStreetSL Fallout: LL goes begging to Solution Providers for banner ads

In yet another telltale sign of XStreetSL's business losses due to their own greed, Prok dishes the dirt on a "limited time complimentary banner ads" program to Solution Providers. While I don't really care about banner ads on XStreet anyhow(I rarely, if ever, clicked on one anyway), in the comments it's revealed that non-LL banner ads have dropped faster than a rock.

I took a quick look at XStreetSL for old time's sake, and sure enough a LL ad shows up quite often each time I reload or navigate around the marketplace. Before the listing taxes announcement, I would rarely, if ever, see a LL banner ad on XStreetSL.

I'll let the commenter who blew the whistle on the XStreeSL ads sum it up for me:

I would suggest this is a combination of desperation at trying to get some fresh ads up there and the beginning of their push to make xsl work friendly - which is never will be.

Until the Lab comes clean and kills the listing taxes in favor of a more balanced solution, expect things to only get worse for the Commerce team.

My predictions for 2010

In less than a month from now, 2009 will officially be history and the New Year will be upon us. So let's look at Second Life in 2009 and see if we can divine where we will be going in the New Year:

Snowglobe and Third Party Viewers:

2009 seen a prominence in third-party viewers, even Linden Lab's Snowglobe viewer joining the mix. However, the newfound popularity of these viewers has also brought controversy. Where will this lead us in 2010?

I predict that the Viewer Registry will see the light of day, with the Hippo, Imprudence and Meerkat viewers easily making the cut. Emerald will be included in the registry, much to the anger of a "certain comrade", but only after certain controversial features are removed or changed. Put quite simply, I see a bright future ahead for third-party viewers.

OpenSim:

This year we've seen the introduction of OpenSim archives, inventory archives, megaregions, the Diva distribution, Hypergrid and a highly experimental in-world currency module using PayPal. This has been the year that OpenSim has finally become a halfway decent alternative to buying a sim in SL.

In the New Year expect to see the stabilisation and maturation of Hypergrid, megaregions and the possible inclusion of an in-world currency system to finally push OpenSim as a marketable alternative to SL.

XStreetSL:

Never have I seen something go from one of SL's greatest innovations to the biggest example of corporate greed and favoritism. It all started when the Lab bought out XStreetSL and OnRez. They shut down OnRez, horribly redesigned the XStreetSL site, and replaced the forums with a P.O.S. "blogorum". But the coup de grace came last month when the Lab announced higher commission fees and introduced unconscionable listing taxes on freebies. This prompted myself and many others to de-list our items from XStreetSL, trash our magic boxes, and sell our items on competing sites. This has caused a significant loss of business for XStreetSL, leaving merchants and customers alike to question the future of SL's once favourite online marketplace.

Where will XStreetSL go in 2010? Judging from this year's failures, unless the Lab realizes just how much damage they've caused themselves, XStreetSL may get shut down due to sheer lack of business. This, however, will be a boon for third-party e-commerce sites who stand to gain the most from it.

Second Life*:

We've seen overall greater grid stability and growth, Zindra, a bottoming out of land prices in line with the RL economy, Second Life Enterprise, Philip Rosedale leaving, and the forced disbandment of the Mentors group on the same day as the XStreetSL listing taxes announcement. It's been a mixed year for the grid.

Where will Second Life go next year? I predict there will be new features to the official viewer borrowed from third-party viewers, but that's where the good stuff ends. I am sadly predicting a return of the "prim tax"(or an in-world sales tax), caused by the failure of XStreetSL to extort more profit for the Lab. There will be revolts and protests like the last time, but the Lab will not buckle and this will force people to completely jump ship and set up on OpenSim or an OpenSim-based world. It will be a harsh year in SL, for both residents and the Lab. 2010 may be the year SL completely loses its' mojo.

*Update: Looks like the Lindens have given new Premium residents a nice Christmas present: Linden Homes. It's essentially a new incarnation of the previous "First Land" program. It won't change my predictions, though. It's all just to get more Premium memberships to offset the cancellations that resulted from the XStreet fiasco.

**Update 2: As quite a few people expected, Prok responds to the Linden Homes announcement with the kind of tl;dr outrage that screams BS. She thinks these un-terraformable, un-joinable, un-sellable plots with an un-removable small home, only available to Premium residents are a threat to her mainland rental business. I'll write up a post later on why she's really just shoveling manure on the subject.

The "unintended" consequences of XStreetSL's listing taxes

As the first of the big changes to XStreetSL(L$99 freebie monthly tax) will be coming soon(sometime between Dec. 18 - Jan. 18), "unintended" consequences are already being clearly seen.

XStreetSL now has a big rash of active item listings that no longer have any items associated with it. This was due to merchants neglecting to de-list their items before trashing their XStreetSL magic boxes. This will force the Commerce team to eventually do a sweep and remove the "dead" listings, but until then these listings serve as a proof of lost income for the Lab: customers can't buy them, the Lab can't get a commission, and heaven help them if they try to extract listing taxes from those dead listings.

So many of the merchants who left now leave the Lab with a significant liability in terms of both monetary and reputational value. XStreetSL's primary strength was it's ability to buy items in a browser and not have to go through the trouble of finding them in-world. With these dead listings, the departed merchants have effectively undermined that strength and simultaneously made alternatives more appealing. And it may get worse when the listing taxes go in effect, causing more merchants to leave abruptly when they are truly faced with the Lab's greed.

Congratulations, Commerce team. You've fostered the creation of content black holes on your site.

Some proof of how XStreetSL's listing fees are anti-competitive

I just stumbled onto Massively's latest article covering the XStreetSL listing tax announcement, and I found a revelation in the comments, courtesy of Imprudence developer Jacek Antonelli: By XStreetSL's own rules, they are engaging in anti-competitive practices. To wit:

Anti-Competitive or Abusive Behavior. Examples include, but are not limited to:

• inflating prices on Xstreet SL compared to in-world or other e-commerce sites,
• hostile reviews or comments on a competing merchant's items, and
• item listings which are abusive against another merchant or their products.

Okay, let's apply these rules when the listing fees kick in, particularly for freebies. You list a freebie, and get hit with a $L99 fee. How do you compensate for that? Assuming it will actually remain a good seller, you adjust the price to, say $L4, which subsequently lowers the fee to L$10. You then decide to note in the listing "this item is free if purchased at my store in-world". Guess what? You just violated XStreetSL's rules and if caught the listing will be de-activated until you either change the XStreetSL price to match the in-world price of $L0(thereby incurring the $L99 tax again) or change the in-world price to match the XStreetSL price(effectively making the freebie "free no more").

So where is XStreetSL itself violating it's own rules? Look more closely at the above scenario, and extend it out by adding that the merchant has also listed the item on other marketplaces that do not have listing taxes. According to XStreetSL's rules now, the merchant must also bump up the price on the other sites to maintain the XStreetSL listing. So XStreetSL is, in effect, using the listing taxes in combination with it's own rules to extend it's reach beyond it's own marketplace to their competitors. That sounds pretty anti-competitive, yes? Monopolistic, even.

So now the merchant only has two choices: either grudgingly comply with XStreetSL and make the freebie a non-freebie everywhere, or de-list and remove the freebie item from the XStreetSL marketplace forever in order to preserve the merchants' freedom to price as he/she fits.

Oh, and lest you think this is all just bitching about "paying the equivalent of a nickel more", take a look at this breakdown of how the listing taxes build up for one merchant and tell me if it's still peanuts.

The New XStreetSL "listing taxes": WTF are the Lindens smoking today?

Today the Lindens delivered a swift kick in the stones to both Second Life Mentors and XStreetSL merchants.

First, they are going to disband the Second Life Mentor Volunteer Program. Taking the long view on the move would seem it's not too bad as it won't affect the ability to create and run volunteer groups in-world, but from a PR standpoint it's a spit in the face to the volunteer community, no matter how much the announcement is sugar-coated.

But the really big Linden blunder announced today finally exposes the real reason behind the merchant survey Pink Linden recently sent out: They want to further tax residents for use of XStreet and pander to only high-volume merchants.

Don't let the "it's just to manage freebies" lie fool you. All listings will be charged a monthly tax(and it is a tax). This will effectively kill, not "manage" freebies on XStreet and lock out residents who previously used XStreet as a way to sell inexpensive products or give away creations as a gift to the Second Life community. It may also wind up screwing over shoppers too, as merchants who choose to live with the listing taxes may simply bump up prices to cover it.

For me, this means that I would wind up paying XStreet L$490/month for all my non-freebies and $L198/month for my two freebies. That comes out to $L688/month + the already existing 5% commissions. And let's factor in that my most expensive listing is only L$175 but rarely sells and I find out that a pretty big chunk of sales gets gobbled up by XStreetSL "listing taxes". So what will I do?

The Silver Lining

First, I will remove every single listing I have on XStreet, as doing business on it has now become untenable. Only the big business merchants can play on XStreet, I get that now.

After I remove my listings, I'll save my products in an inventory folder, trash my magic box and XStreet merchant vendor signs, and only list my products on meta-LIFE.They don't charge for listing freebies, and have a great vendor branding system to promote your business with(also free). I may look into others like SLapt.me and Apez(even though the site design of it is beyond ugly).

From the discussion thread, it seems that a majority of other merchants will follow suit, and hopefully shoppers as well.

Goodbye XStreetSL, it was a great run:

Update: I got word that there have been at least 3,000 de-listings from the Apparel section alone on XStreetSL in less than 24 hours. The income loss from these de-listings are most likely very significant. While other section de-listings haven't been quantified yet, it's safe to say that this is one of the biggest disasters the Lab has pulled on us.