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It’s amazing that in Web 2.0 (I would put the relevant years, as Robert Scoble would have it), going into Web 2010, that some companies haven’t even gotten their basic websites down pat.  Here is a quick review of one site that doesn’t get it and one that does.

CareFirst, the health insurance company, as an example, has a website where you can log in only during certain times a day.  So if you want to check policy info, you can’t do it when you get home really late or wake up really early in the morning and want to tackle some errands.

Also, some of the basic things I can’t do, like review detailed coverages, see whether I was given the correct price on medicine by the pharmacy (formulary), policy pricing if adding certain riders, request new healthcare cards, etc.  You can, however, review broad coverages, like co-pay amounts, who’s covered and  history, but that’s about it.

It’s completely ass backward.  I mean, who ever heard of a website being “open” only during office hours???

A site that’s got it together???

Progressive.  You can do almost everything on that site.  You can see how changes in your coverages change your premium, file claims, get policy docs, and so on.  It’s a robust user interface that is obviously well synced with Progressive’s other internal and external systems.

I love it.  I don’t have to call and be put on hold to get any of the basic information.  It’s really a model of efficiency and effectiveness.  Progressive personnel can spend their time handling more complicated issues.

Shame on CareFirst and hooray for Progressive!!!

We’ve written about 360 deals before.  The much rumored deal between Jay-Z (aka Shawn Carter) and Live Nation is expected to finalize this week along those lines. 

The NY Times reported that the deal is valued at $150 million.  The short of it is that Jay-Z gets what amounts to an investor in Live Nation for future ventures that he creates.  These would include record distribution, merchandising, concert ticket sales and merchandising.  Live Nation will annually fund Jay-Z’s umbrella company (that will partake in the venture) and share in the profits thereof.

The deal reflects the kinds of 360 deals that we’ve talked about, where more and more mergers and acquisitions will happen along the vertical: record labels, distribution, artist management, merchandising, advertisers, promoters, etc. 

The inevitable ‘why’ comes to mind.  Because CD sales are down, more music is becoming free or low cost, but demand appears to remain strong. 

So the best business models will seek to diversify and capture different streams of revenue, presuming that core demand is still there. 

 What’s more interesting is that LiveNation is positioning itself as the ‘GE’ of music. 

Live Nation could have its hand in just about every aspect of music (rather entertainment).  Investing in Live Nation could be like investing in a mutual fund for entertainment.  Distribution, concert tix sales, merchandising, promotions, the whole nine. 

 Logical Next Step

What would be interesting is to see Live Nation partnering/acquiring a company in the web 2.0 space, like a distributive media company (e.g., widgets), a virtual world like Doppelganger’s vSide or the next FaceBook kind of social media company. 

It would make sense when looking at the mega trends of more people spending time online, TONS of dollars going in online advertising, online services, etc.

Live Nation appears to be building such a model.  It acquired Music Today, a one stop shop for merchadising, fan club building and more for artists.  Live Nation has been partnering with several companies to develop its online presence, like Last.FM.  Full acquisition might be the next step.

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Further, it is marking its territory to become the better record label model.  It already wooed Madonna from Warner.  Now, Jay-Z is leaving Def Jam.  This is particularly interesting since Live Nation has historically focused on rock and country.  

I asked a couple of record labels about possible acquisitions as a revenue strategy, but maybe it could be basic business strategy to ward off companies like Live Nation.  Most said they really hadn’t thought it through.  But a few are realizing the game is changing and it’s not really about entertainment, but a basic business policy that creates allies everywhere to further the mission of the company.  I’ll write more on this later. 

Fascinating!!!