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Facebook today is rolling out a new feature that will allow friends and family to watch videos together over Messenger. The feature, called “Watch Together,” works with all Facebook Watch video content, including its original programs, user uploads, creator content, live streams and, soon, music videos. At launch, the co-watching experience can be used by up to eight people in a Messenger video chat on mobile, or by up to 50 people in Messenger Rooms.
The COVID-19 pandemic has encouraged a number of streaming services — including Hulu, Plex and Amazon Video — to adopt similar co-viewing features, or at the very least, unofficially permit third-party apps that enable co-watching, like Netflix Party.
However, Facebook didn’t just jump on this bandwagon. It actually announced at its F8 developer conference two years ago its plans to develop a co-viewing experience for Messenger. And the product has been in development ever since.
Image Credits: FacebookTo roll out something like co-viewing across Messenger is a significant technical challenge. The service hooks into the Facebook Watch CDN (content distribution network) to pull the videos into Messenger. It also then developed a system that allows for tight synchronization between the various users’ streams of the same video. That, too, can be difficult, as someone in a rural area may have slower bandwidth speeds than someone in an urban metro, but the service has to make sure they’re seeing the same part of the video at the same time.
Image Credits: Facebook
To use the feature, users have to first be in a Messenger video call or a Messenger Room — it can’t be kicked off from the Facebook Watch tab or anywhere else. From Messenger, they’re able to start a co-watching session by selecting the new option from a drawer that pulls up from the bottom of the screen. Initially, this feature is only available on iOS and Android mobile devices, Facebook says.
From the interface that appears, users can then browse or search to find something to watch together. Facebook Watch content is organized into categories like “TV & Movies,” “Watched” (your recently watched content), “Uploaded” (your own videos) and “Suggested.”
While users can’t create playlists or queues, all participants can help choose videos. That is, there’s not one person directing the experience for others. Everyone can also stop, pause or jump forward or back in the videos, too.
Though many may use the feature for a sort of lean-back co-watching experience, it has other potential. For example, a group could get together to watch a fitness video and work out together.
Though official music videos recently became available on Facebook Watch, thanks to Facebook’s new deal with record labels, they’re not immediately available in this co-viewing experience. However, Facebook says that they’ll be added in the next few weeks, initially in the U.S., India and Thailand to start. Each market will also feature localized content under the “TV & Movies” section, too.
The feature will begin rolling out globally across iOS and Android, but Facebook intends to have web support ready in a matter of weeks, and other platforms, like desktop, will follow.
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Facebook returns to its college roots, Alexa gets a printing feature and we take a deep dive into Unity’s business. This is your Daily Crunch for September 10, 2020.
The big story: Facebook launches a college-only network
If you’re old and decrepit like me, you remember when Facebook was only for college students and required a college email address to join. Well, it seems everything old is new again, because the company is piloting a new feature called Facebook Campus … which is only for college students and requires a college email address to join.
Facebook’s Charmaine Hung argued that the product is particularly relevant now: “With COVID-19, we see that many students aren’t returning to campus in the fall. Now, classes are being held online and students are trying to react to this new normal of what it’s like to connect to clubs and organizations that you care about, when you’re not together.”
Of course, this could also be a way for Facebook to try to stay relevant to a younger demographic, before they move on to other apps.
The tech giants
Amazon launches Alexa Print, a way to print lists, recipes, games and educational content using your voice — The feature works with any second-generation Echo device or newer, as well as a range of printers.
Google says it’s eliminating Autocomplete suggestions that target candidates or voting — The company says that it will now remove any Autocomplete predictions that seem to endorse or oppose a candidate or a political party, or that make a claim about voting or the electoral process.
Microsoft Surface Duo review — Brian Heater calls it a beautiful, expensive work in progress.
Startups, funding and venture capital
Orchard real estate platform raises $69 million Series C led by Revolution Growth — Orchard (formerly Perch) launched in 2017 with a mission to digitize the entire experience of buying and selling a home.
How Unity built a gaming engine for the future — Eric Peckham offers an in-depth look at the company’s financials as it prepares to go public.
India’s Zomato raises $100M from Tiger Global, says it is planning to file for IPO next year — In an email to employees, CEO Deepinder Goyal said the food delivery startup has about $250 million cash in the bank, with several more “big name” investors preparing to join the current round.
Advice and analysis from Extra Crunch
Use ‘productive paranoia’ to build cybersecurity culture at your startup — We asked Casey Ellis, founder, chairman and chief technology officer at Bugcrowd, to share his ideas for how startups can improve their security posture.
What’s driving API-powered startups forward in 2020? — It’s not hard to find startups with API-based delivery models that are doing well this year.
(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)
Everything else
Announcing the Startup Battlefield companies at TechCrunch Disrupt 2020 — This is our most competitive batch to date.
$3 million Breakthrough Prize goes to scientist designing molecules to fight COVID-19 — David Baker’s work over the last 20 years has helped validate the idea that computers can help us understand and create complex molecules like proteins.
Recorded music revenue is up on streaming growth, as physical sales plummet — With vastly more people stuck inside seeking novel methods of entertainment, paid subscriptions are up 24% year-over-year.
The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.
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A few days ago I wrote down a few notes making a bullish case for Palantir, searching to find good news amidst the company’s huge historical deficits.
Heading into the next phase of Palantir’s march to the public markets, I was very curious to see how the company would hone its S-1 filing to give itself the best possible shot during its impending debut.
The Exchange explores startups, markets and money. You can read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.
And we finally did get a new S-1/A filing, a document that our own Danny Crichton quickly parsed and covered. What he found was a set of amendments that seem to increase the chance that three Palantir insiders will control more than 50% of the company’s voting power forever, possibly making it a controlled company, which would loose the firm from select regulatory requirements.
Danny dryly noted that “given the diminished voting power of employee and investor shares, it is possible that these voting provisions will negatively impact the final price of those shares.” That’s being polite.
Mulling this over this morning, I kept thinking about Snap, which sold stock in its IPO that gave new shareholders no votes at all, and Facebook, which is controlled by Mark Zuckerberg as his personal fiefdom. The two are not alone in this matter. There are a number of other public tech companies that provide certain groups of pre-IPO shareholders more votes than others on a per-share basis, though perhaps to a smaller degree than what Facebook has managed.
It feels like many startups (and former startups) have decided over time that having material shareholder input is a bad idea. That, in effect, they must run companies as not merely monarchies, but unquestioned ones, to boot.
I am not entirely convinced that this is the best way to create long-term shareholder wealth.
If you are on the other side of this particular fence, I understand. After all, Facebook is a global juggernaut and Snap has finally managed to eke out stock-market gains to bring its value back around to where it was when it went public. (A three-year journey.)
But those arguments are only so good. You could easily argue that the two companies could have done much more with less self-sabotage (Facebook) and a bit more spend discipline (Snap).
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Facebook is sharing some new growth numbers around its video destination — namely, that Facebook Watch is now receiving more than 1.25 billion visitors every month.
The company isn’t saying specifically how those numbers have changed during the pandemic (when video services like Netflix have seen dramatic growth), but product lead Paresh Rajwat said there was “a really big surge” at the beginning of lockdown and social distancing, and that the surge has not subsided as society begins to reopen.
Facebook Watch launched in 2018. Back in June of last year, the company said that 720 million people were watching at least one minute of Watch content every month.
Rajwat noted that while Watch is built on “the social layer of Facebook,” with videos shareable across Facebook’s many products, the views are happening on Watch itself.
“It is super critical for us to have a destination,” he said, keeping videos from popular creators and publishers separate from the core Facebook experience of interacting with friends and family. “The moment we mix them together, it becomes a completely different product for people.”
Rajwat added that the company isn’t just looking at overall audience size. He argued that when you look at “the reactions and comments and shares” you can see that “the content we have is working.” (Advertisers have wondered about the true extent of audience engagement on Facebook Watch.)
Last year, as tech and media companies were all investing heavily to launch their own streaming services, we argued that Facebook’s efforts with unscripted shows and older content seemed pretty lackluster in comparison. But it sounds like the content that’s working on Watch isn’t the kind of thing you’d find on Netflix or Disney+ — as Rajwat put it, “The angle we’ve taken is to focus more on content that is around social topics to drive conversations.”
Image Credits: Facebook
For example, there’s “Red Table Talk” from Jada Pinkett Smith and family, a talk show that made headlines over the summer for bringing Will Smith and Jada together to discuss their marital issues. Facebook plans to launch another version of Red Table Talk in October, “Red Table Talk: The Estefans,” with Gloria Estefan, her niece Lily and her daughter Emily.
As another example of a successful original Facebook Watch show, Rajwat pointed to “Returning the Favor,” an Emmy-winning program where host Mike Rowe showcases everyday heroes.
Rajwat said that live programming has increased significantly during the pandemic. That includes live sports, with 13.7 million people watching the UEFA Champions League final, making it the most popular football broadcast ever on Facebook Watch. And Facebook recently announced that publishers and other businesses will be able to charge for access to live online events, with Facebook taking no fees for the next year.
The site also added licensed music videos over the summer, with Katy Perry premiering her music video for “Smile” exclusively on Facebook Watch, where it was watched by “millions” of fans.
Image Credits: Facebook
The company-highlighted successful publishers on Facebook Watch include organizations like UFC, large publishers like BuzzFeed and individual creators like Benito Skinner and Brandi Guice, a.k.a. Braannxo, who’s making 98% of her revenue from Facebook Stars and fan subscriptions.
Looking forward, Rajwat said that a big priority is making “more and more investment in showing people what they really are interested in.” To that end, users have already spotted that Facebook Watch is now allowing users to customize their feed by exploring and subscribing to different topics.
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Stan Chudnovsky last spoke at Disrupt in 2016, so we’ve got a lot to catch up on.
Chudnovsky remains in charge of Facebook Messenger — his current title is VP of Messenger — so he can tell us more about how the product has evolved at this year’s Disrupt 2020 on September 14-18.
One of the biggest changes has been the launch of Messenger Rooms, a service that allows you to start and join video calls from within Facebook or Messenger (and eventually other Facebook products). The product’s appeal is pretty easy to see in a time of social distancing, but Facebook still has a long way to go if it wants to challenge Zoom.
Meanwhile, we’ve also seen increasing scrutiny about the role that messaging apps can play in spreading hate speech and misinformation. Among Facebook’s apps, WhatsApp has struggled the most visibly with these issues, but Messenger has also been adding tools to help people share accurate information about the COVID-19 pandemic.
On top of all that, we can get general updates on how FB Messenger has been doing during the pandemic, and what the big priorities are moving forward. Chudnovsky might also have some thoughts to share on the messaging landscape, and on the startup world — after all, before joining Facebook, he co-founded startups including Jiff, NFX, Ooga Labs and Wonderhill.
Learn more about the future of messaging at our all-virtual Disrupt 2020, which runs from September 14-18. Get your front row seat to see this panel live with a Disrupt Digital Pro Pass or a Digital Startup Alley Exhibitor Package. We’re excited to see you there.
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Another busy week in cybersecurity.
In case you missed it: A widely used messaging app used by over a million protesters has several major security flaws; a little-known loophole has let the DMV sell driver’s licenses and Social Security records to private investigators; and the U.S. government is suing to reclaim over $2.5 million in cryptocurrency stolen by North Korean hackers from two major exchanges.
But this week we are focusing on how a Tesla employee foiled a ransomware attack, and, ahead of Palantir’s debut on the stock market, how much of a risk factor is the company’s public image?
$1 million. That’s how much a Tesla employee would have netted if they accepted a bribe from a Russian operative to install malware on Tesla’s Gigafactory network in Nevada. Instead, the employee told the FBI and the Russian was arrested.
The Justice Department charged the 27-year-old Russian, Egor Igorevich, weeks later as he tried to flee the United States. According to the indictment, his plan was to ask the employee to deliberately deploy ransomware on the Gigafactory’s network, grinding the network to a halt for a ransom of several million dollars. The would-be insider threat is likely the first of its kind, one ransomware expert told Wired, as financially driven hackers continue to up their game.
Tesla founder Elon Musk tweeted earlier this week confirming that Tesla was the target of the failed attack.
The attack, if carried out, could have been devastating. The indictment said that the malware was designed to extract data from the network before locking its files. This data-stealing ransomware is an increasing trend. These hacker groups not only encrypt a victim’s files but also exfiltrate the data to their servers. The hackers typically threaten to publish the victim’s files if the ransom isn’t paid.
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For years, India has served as the largest open battleground for Silicon Valley and Chinese firms searching for their next billion users.
With more than 400 million WhatsApp users, India is already the largest market for the Facebook-owned service. The social juggernaut’s big blue app also reaches more than 300 million users in the country.
Google is estimated to reach just as many users in India, with YouTube closely rivaling WhatsApp for the most popular smartphone app in the country.
Several major giants from China, like Alibaba and Tencent (which a decade ago shut doors for most foreign firms), also count India as their largest overseas market. At its peak, Alibaba’s UC Web gave Google’s Chrome a run for its money. And then there is TikTok, which also identified India as its biggest market outside of China.
Though the aggressive arrival of foreign firms in India helped accelerate the growth of the local ecosystem, their capital and expertise also created a level of competition that made it too challenging for most Indian firms to claim a slice of their home market.
New Delhi’s ban on 59 Chinese apps on June 30 on the basis of cybersecurity concerns has changed a lot of this.
Indian apps that rarely made an appearance in the top 20 have now flooded the charts. But are these skyrocketing download figures translating to sustaining users?
An industry executive leaked the download, monthly active users, weekly active users and daily active users figures from one of the top mobile insight firms. In this Extra Crunch report, we take a look at the changes New Delhi’s ban has enacted on the world’s second largest smartphone market.
Scores of startups in India, including news aggregator DailyHunt, on-demand video streamer MX Player and advertising giant InMobi Group, have launched their short-video format apps in recent months.
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Facebook is announcing a number of new e-commerce features both within the main Facebook app and on Instagram.
The pandemic has forced many businesses to shift online, and Facebook made a big announcement in May around the ability of merchants to create Facebook Shops that are viewable on both Facebook and Instagram. More recently, Instagram launched a redesigned Shop section, where users can browse products from their favorite brands and creators.
Now the company is bringing a similar experience to the main Facebook app. The company said that in the United States, it’s started testing a new section called Facebook Shop — like Instagram Shop, it’s basically a shopping destination where you can find products from a variety of different businesses. (This is distinct from Facebook Marketplace, which is designed for peer-to-peer sales.)
Director of Product Management George Lee told me the goal is to create something that’s “unique to the Facebook app and the Facebook community.”
Image Credits: Facebook
“That’s not to say that there aren’t learnings across the board,” he said. “[Instagram Shop and Facebook Shop] probably look like slightly different on day one, and the goal is not to have them be cookie cutters of the same experience.”
In addition, the company is announcing new tools for businesses running Facebook Shops, including new design layouts, the ability to see a real-time preview of collections, the ability to automatically create Shops if you’re a new seller and new data in Commerce Manager. Shops will also feature a new messaging option for customers to send sellers a message through Messenger, WhatsApp or Instagram Direct.
On the Instagram side, the company said all sellers in the United States will be able to use the Instagram checkout feature “in the coming weeks,” managed either through Facebook’s Commerce Manager or through partners platforms BigCommerce and Shopify (with more integrations planned). Instagram will waive its selling fee for checkout through the rest of the year.
The company has also been testing a live shopping experience, where businesses can show off products in a live video, while consumers can browse the highlighted products and make purchases. Instagram Live Shopping should now be available to all sellers using Instagram Live Shopping in the United States.
Image Credits: Facebook
“We’ve seen live shopping take off in other parts of the world,” said Instagram’s vice president of product Vishal Shah. “The pandemic has really changed behavior from a consumer perspective, so we’re moving as fast as we can to bring out these tools to help [businesses respond].”
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When Congress called in tech CEOs to testify a few weeks ago, it felt like a defining moment. Hundreds of startups have become unicorns, with the largest worth more than $1 trillion (or perhaps $2 trillion). Indeed, modern tech companies have become so entrenched, Facebook is the only one of the Big Five American tech shops worth less than 13 figures.
The titanic valuations of many companies are predicated on current performance, cash on hand and lofty expectations for future growth. The pandemic has done little to stem Big Tech’s forward march and many startups have seen growth rates accelerate as other sectors rushed to support a suddenly remote workforce.
But inside tech’s current moment in the sun is a concern that Congress worked to highlight: Are these firms behaving anti-competitively?
By now you’ve heard the arguments concerning why Big Tech may be too big, but there’s a neat second story that we, the Equity crew, have been chatting about: Some startups are racing into the big kill zone.
They have to be a bit foolhardy to take on Google Gmail and Search, Amazon’s e-commerce platform or Apple’s App Store. Yet, there are startups targeting all of these categories and more, some flush with VC funding from investors who are eager to take a swing at tech’s biggest players
If the little companies manage to carve material market share for themselves, arguments that Big Tech was just too big to kill — let alone fail — will dissolve. But today, their incumbency is a reality and these startups are merely bold.
Still, when we look at the work being done, there are enough companies staring down the most valuable companies in American history (on an unadjusted basis) that we had to shout them out. Say hello to the “anti-antitrust club.”
Gmail has been the undisputed leader in consumer email for years (if not enterprise email, where Microsoft has massive inroads due to Exchange and Outlook). Startups have contested that market, including Mailbox, which sold to Dropbox for about $100 million back in 2013, but whenever a new feature came along that might entice users, Gmail managed to suck it up into its app.
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At TechCrunch Early Stage, I spoke with Coatue Management GP Caryn Marooney about startup branding and how founders can get people to pay attention to what they’re building.
Marooney recently made the jump into venture capital; previously she was co-founder and CEO of The Outcast Agency, one of Silicon Valley’s best-regarded public relations firms, which she left to become VP of Global Communications at Facebook, where she led comms for eight years.
While founders often may think of PR as a way to get messaging across to reporters, Marooney says that making someone care about what you’re working on — whether that’s customers, investors or journalists — requires many of the same skills.
One of the biggest insights she shared: at a base level, no one really cares about what you have to say.
Describing something as newsworthy or a great value isn’t the same as demonstrating it, and while big companies like Amazon can get people to pay attention to anything they say, smaller startups have to be even more strategic with their messaging, Marooney says. “People just fundamentally aren’t walking around caring about this new startup — actually, nobody does.”
Getting someone to care first depends on proving your relevance. When founders are forming their messaging to address this, they should ask themselves three questions about their strategy, she recommends:
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