CompuServe Messages

Michael: NewTek had a press conference Sunday before NAB that I missed attending another press conference. I did attend their "public/customer conference" later the same day. Since it was for the public, I guess I shouldn't feel too bad writing about it… There were a couple discouraging aspects. First, they introduced a new President who introduces himself as a lawyer and says he's in charge (visions of Al Haig, but make your own opinion about that). He proceeds to tell this room full of Toaster enthusiasts that he knows there have been some real problems with the Flyer, he knows it's not ready and he's 'not going to let it happen anymore.' He's in control and he'll make things right. IMHO the mood was quite negative to a crowd of people expecting to hear the latest greatest stuff from popular NewTek. Next Tim Jenison tries to demo the new PC Toaster with very regretable results. OK, trade show… prototype… things do go wrong at times for all companies. That's a technical problem not a strategic one. This NewTek event was to start at 5:00 at Caesar's. At 7:00 at Caesar's, the company, Play Inc. made up of ex-NewTek people Kiki Stockhammer, Mark Randall, Paul Montgomery, etc., was scheduled to debut their new product, Trinity. Well, no surprize that NewTek doesn't start until almost 6:30. But at 7:00, while Tim is up on stage trying his demo, Penn Gillette (of Penn & Teller) jumps up in the very center of this room of a couple thousand people and yells "Tim, STOP, Tim it's 7:00, it's time to go to Play… Laser tag. Yes, that's right. NewTek is going to pay for everyone here to play laser tag. There are buses out front waiting. There's food there for everyone. Let's go." IMHO: 1) All of that crowd knew NewTek and few knew about Play. NewTek made the mistake of introducing the competition. And by trying to keep people away, the curiousity was heighten. 2) As a perceived industry leader it's a mistake to acknowledge or compare oneself to a lesser known. That can almost never work. 3) There is clearly some bad blood left from the split. BUT, NewTek let their emotions dictate their business decisions. Their focus seems to be hurting the Play "defectors" and not taking care of business. 4) This industry is still small enough, and growing quickly enough, that companies will do well if the industry does well. There is no valid reason at this time for a company to be aggressively negative about another industry company. 5) From Tim's demo it looks as though they may have better things to spend money on than on 1) – 4). Again, IMHO. Jeff Sauer