Auto Added by WPeMatico
Building a great startup requires more than genius and a great invention
Shahin Farshchi
Contributor
Contributor
Shahin Farshchi is a partner at Lux Capital.
More posts by this contributor
Many entrepreneurs assume that an invention carries intrinsic value, but that assumption is a fallacy.
Here, the examples of the 19th and 20th century inventors Thomas Edison and Nikola Tesla are instructive. Even as aspiring entrepreneurs and inventors lionize Edison for his myriad inventions and business acumen, they conveniently fail to recognize Tesla, despite having far greater contributions to how we generate, move and harness power. Edison is the exception, with the legendary penniless Tesla as the norm.
Universities are the epicenter of pure innovation research. But the reality is that academic research is supported by tax dollars. The zero-sum game of attracting government funding is mastered by selling two concepts: Technical merit, and broader impact toward benefiting society as a whole. These concepts are usually at odds with building a company, which succeeds only by generating and maintaining competitive advantage through barriers to entry.
In rare cases, the transition from intellectual merit to barrier to entry is successful. In most cases, the technology, though cool, doesn’t give a fledgling company the competitive advantage it needs to exist among incumbents and inevitable copycats. Academics, having emphasized technical merit and broader impact to attract support for their research, often fail to solve for competitive advantage, thereby creating great technology in search of a business application.
Of course there are exceptions: Time and time again, whether it’s driven by hype or perceived existential threat, big incumbents will be quick to buy companies purely for technology. Cruise/GM (autonomous cars), DeepMind/Google (AI) and Nervana/Intel (AI chips). But as we move from 0-1 to 1-N in a given field, success is determined by winning talent over winning technology. Technology becomes less interesting; the onus is on the startup to build a real business.
If a startup chooses to take venture capital, it not only needs to build a real business, but one that will be valued in the billions. The question becomes how a startup can create a durable, attractive business, with a transient, short-lived technological advantage.
Most investors understand this stark reality. Unfortunately, while dabbling in technologies which appeared like magic to them during the cleantech boom, many investors were lured back into the innovation fallacy, believing that pure technological advancement would equal value creation. Many of them re-learned this lesson the hard way. As frontier technologies are attracting broader attention, I believe many are falling back into the innovation trap.
So what should aspiring frontier inventors solve for as they seek to invest capital to translate pure discovery to building billion-dollar companies? How can the technology be cast into an unfair advantage that will yield big margins and growth that underpin billion-dollar businesses?
Talent productivity: In this age of automation, human talent is scarce, and there is incredible value attributed to retaining and maximizing human creativity. Leading companies seek to gain an advantage by attracting the very best talent. If your technology can help you make more scarce talent more productive, or help your customers become more productive, then you are creating an unfair advantage internally, while establishing yourself as the de facto product for your customers.
Great companies such as Tesla and Google have built tools for their own scarce talent, and build products their customers, in their own ways, can’t do without. Microsoft mastered this with its Office products in the 1990s through innovation and acquisition, Autodesk with its creativity tools, and Amazon with its AWS Suite. Supercharging talent yields one of the most valuable sources of competitive advantage: switchover cost. When teams are empowered with tools they love, they will loathe the notion of migrating to shiny new objects, and stick to what helps them achieve their maximum potential.
Marketing and distribution efficiency: Companies are worth the markets they serve. They are valued for their audience and reach. Even if their products in of themselves don’t unlock the entire value of the market they serve, they will be valued for their potential to, at some point in the future, be able to sell to the customers that have been tee’d up with their brands. AOL leveraged cheap CD-ROMs and the postal system to get families online, and on email.
Dollar Shave Club leveraged social media and an otherwise abandoned demographic to lock down a sales channel that was ultimately valued at a billion dollars. The inventions in these examples were in how efficiently these companies built and accessed markets, which ultimately made them incredibly valuable.
Network effects: Its power has ultimately led to its abuse in startup fundraising pitches. LinkedIn, Facebook, Twitter and Instagram generate their network effects through internet and Mobile. Most marketplace companies need to undergo the arduous, expensive process of attracting vendors and customers. Uber identified macro trends (e.g. urban living) and leveraged technology (GPS in cheap smartphones) to yield massive growth in building up supply (drivers) and demand (riders).
Our portfolio company Zoox will benefit from every car benefiting from edge cases every vehicle encounters: akin to the driving population immediately learning from special situations any individual driver encounters. Startups should think about how their inventions can enable network effects where none existed, so that they are able to achieve massive scale and barriers by the time competitors inevitably get access to the same technology.
Offering an end-to-end solution: There isn’t intrinsic value in a piece of technology; it’s offering a complete solution that delivers on an unmet need deep-pocketed customers are begging for. Does your invention, when coupled to a few other products, yield a solution that’s worth far more than the sum of its parts? For example, are you selling a chip, along with design environments, sample neural network frameworks and data sets, that will empower your customers to deliver magical products? Or, in contrast, does it make more sense to offer standard chips, licensing software or tag data?
If the answer is to offer components of the solution, then prepare to enter a commodity, margin-eroding, race-to-the-bottom business. The former, “vertical” approach is characteristic of more nascent technologies, such as operating robots-taxis, quantum computing and launching small payloads into space. As the technology matures and becomes more modular, vendors can sell standard components into standard supply chains, but face the pressure of commoditization.
A simple example is personal computers, where Intel and Microsoft attracted outsized margins while other vendors of disk drives, motherboards, printers and memory faced crushing downward pricing pressure. As technology matures, the earlier vertical players must differentiate with their brands, reach to customers and differentiated product, while leveraging what’s likely going to be an endless number of vendors providing technology into their supply chains.
A magical new technology does not go far beyond the resumes of the founding team.
What gets me excited is how the team will leverage the innovation, and attract more amazing people to establish a dominant position in a market that doesn’t yet exist. Is this team and technology the kernel of a virtuous cycle that will punch above its weight to attract more money, more talent and be recognized for more than it’s product?
Powered by WPeMatico
Why IGTV should go premium
It’s been four months since Facebook launched IGTV, with the goal of creating a destination for longer-form Instagram videos. Is it shaping up to be a high-profile flop, or could this be the company’s next multi-billion-dollar business?
IGTV, which features videos up to 60 minutes versus Instagram’s normal 60-second limit, hasn’t made much of a splash yet. Since there are no ads yet, it hasn’t made a dollar, either. But, it offers Facebook the opportunity to dominate a new category of premium video, and to develop a subscription business that better aligns with high-quality content.
Facebook worked with numerous media brands and celebrities to shoot high-quality, vertical videos for IGTV’s launch on June 20, as both a dedicated app and a section within the main Instagram app. But IGTV has been quiet since. I’ve heard repeatedly in conversations with media executives that almost no one is creating content specifically for IGTV and that the audience on IGTV remains small relative to the distribution of videos on Snapchat or Facebook. Most videos on it are repurposed from a brand’s or influencer’s Snapchat account (at best) or YouTube channel (more common). Digiday heard the same feedback.
Instagram announced IGTV on June 20 as a way for users to post videos up to 1 hour long in a dedicated section of the app (and separate app)
Facebook’s goal should be to make IGTV a major property in its own right, distinct from the Instagram feed. To do that, the company should follow the concept embodied in the “IGTV” name and re-envision what television shows native to the format of an Instagram user would look like.
Its team should leverage the playbook of top TV streaming services like Netflix and Hulu in developing original series with top talent in Hollywood to anchor their own subscription service, but in it a new format of shows produced specifically for the vertically oriented, distraction-filled screen of a smartphone.
Mobile video is going premium
Of the 6+ hours per day that Americans spend on digital media, the majority on that is now on their phone (most of it on social and entertainment activities) and video viewing has grown with it. In addition to the decline in linear television viewing and rise of “over-the-top” streaming services like Netflix and Hulu, we’ve seen the creation of a whole new category of video: mobile native video.
Starting at its most basic iteration with everyday users’ recordings for Snapchat Stories, Instagram Stories and YouTube vlogs, mobile video is a very different viewing environment with a lot more competition for attention. Mobile video is watched as people are going about their day. They might commit a few minutes at a time, but not hour-long blocks, and there are distracting text messages and push notifications overlaid on the screen as they watch.
“Stories” on the major social apps have advanced vertically oriented, mobile native videos as their own content format
When I spoke recently with Jesús Chavez, CEO of the mobile-focused production company Vertical Networks in Los Angeles, he emphasized that successful episodic videos on mobile aren’t just normal TV clips with changes to the “packaging” (cropped for vertical, thumbnails selected to get clicks, etc.). The way episodes are written and shot has to be completely different to succeed. Chavez put it in terms of the higher “density” of mobile-native videos: packing more activity into a short time window, with faster dialogue, fewer setup shots, split screens and other tactics.
With the growing amount of time people spend watching videos on their social apps each day — and the flood of subpar videos chasing view counts — it makes sense that they would desire a premium content option. We have seen this scenario before as ad-dependent radio gave rise to subscription satellite radio like Sirius XM and ad-dependent network TV gave rise to pay-TV channels like HBO. What that looks like in this context is a trusted service with the same high bar for riveting storytelling of popular films and TV series — and often featuring famous talent from those — but native to the vertical, smartphone environment.
If IGTV pursues this path, it would compete most directly with Quibi, the new venture that Jeffrey Katzenberg and Meg Whitman are raising $2 billion to launch (and was temporarily called NewTV until their announcement at Vanity Fair’s New Establishment Summit last Wednesday). They are developing a big library of exclusive shows by iconic directors like Guillermo del Toro and Jason Blum crafted specifically for smartphones through their upcoming subscription-based app.
Quibi’s funding is coming from the world’s largest studios (Disney, Fox, Sony, Lionsgate, MGM, NBCU, Viacom, Alibaba, etc.) whose executives see substantial enough opportunity in such a platform — which they could then produce content for — to write nine-figure checks.
TechCrunch’s Josh Constine argued last year Snapchat should go in a similar “HBO of mobile” direction as well, albeit ad-supported rather than a subscription model. The company indeed seems to be stepping further in this direction with last week’s announcement of Snapchat Originals, although it has announced and then canceled original content plans before.
Snapchat announced its Snap Originals last week
Facebook is the best positioned to win
Facebook is the best positioned to seize this opportunity, and IGTV is the vehicle for doing so. Without even considering integrations with the Facebook, Messenger or WhatsApp apps, Facebook is starting with a base of more than 1 billion monthly active users on Instagram alone. That’s an enormous audience to expose these original shows to, and an audience who don’t need to create or sign into a separate account to explore what’s playing on IGTV. Broader distribution is also a selling point for creative talent: They want their shows to be seen by large audiences.
The user data that makes Facebook rivaled only by Google in targeted advertising would give IGTV’s recommendation algorithms a distinct advantage in pushing users to the IGTV shows most relevant to their interests and most popular among their friends.
The social nature of Instagram is an advantage in driving awareness and engagement around IGTV shows: Instagram users could see when someone they follow watches or “likes” a show (pending their privacy settings). An obvious feature would be to allow users to discuss or review a show by sharing it to their main Instagram feed with a comment; their followers would see a clip or trailer, then be able to click-through to the full show in IGTV with one tap.
Developing and acquiring a library of must-see, high-quality original productions is massively capital-intensive — just ask Netflix about the $13 billion it’s spending this year. Targeting premium-quality mobile video will be no different. That’s why Katzenberg and Whitman are raising a $2 billion war chest for Quibi and budgeting production costs of $100,000-150,000 per minute on par with top TV shows. Facebook has $42 billion in cash and equivalents on its balance sheet. It can easily outspend Quibi and Snap in financing and marketing original shows by a mix of newcomers and Hollywood icons.
Snap can’t afford (financially) to compete head-on and doesn’t have the same scale of distribution. It is at 188 million daily active users and no longer growing rapidly (up 8 percent over the last year, but DAUs actually shrunk by 3 million last quarter). Snapchat is also a much more private interface: it doesn’t enable users to see each others’ activity like Facebook, Instagram, LinkedIn, YouTube, Spotify and others do to encourage content discovery. Snap is more likely to create a hub for ad-supported mobile-first shows for teens and early-twentysomethings rather than rival Quibi or IGTV in creating a more broadly popular Netflix or Hulu of mobile-native shows.
It’s time to go freemium
Investing substantial capital upfront is especially necessary for a company launching a subscription tier: consumers must see enough compelling content behind the paywall from the start, and enough new content regularly added, to find an ongoing subscription worthwhile.
There is currently no monetization of IGTV. It is sitting in experimentation mode as Facebook watches how people use it. If any company can drive enough ad revenue solely from short commercials to still profit on high-cost, high-quality episodic shows on mobile, it’s Facebook. But a freemium subscription model makes more sense for IGTV. From a financial standpoint, building IGTV into its own profitable P&L while making substantial content investments likely demands more revenue than ads alone will generate.
Of equal importance is incentive alignment. Subscriptions are defined by “time well spent” rather time spent and clicks made: quality over quantity. This is the environment in which premium content of other formats has thrived too; Sirius XM as the breakout on radio, HBO on linear TV, Netflix in OTT originals. The type of content IGTV will incentivize, and the creative talent they’ll attract, will be much higher quality when the incentives are to create must-see shows that drive new subscribers than when the incentives are to create videos that optimize for views.
Could there be a “Netflix for mobile native video” with shows shot in vertical format specifically for viewing on smartphone?
The optimization for views (to drive ad revenue) have been the model that media companies creating content for Facebook have operated on for the last decade. The toxicity of this has been a top news story over the last year with Facebook acknowledging many of the issues with clickbait and sensationalism and vowing changes.
Over the years, Facebook has dragged media companies up and down with changes to its newsfeed algorithm that forced them to make dramatic changes to their content strategies (often with layoffs and restructuring). It has burned bridges with media companies in the process; especially after last January, how to reduce dependence on Facebook platforms has become a common discussion point among digital content executives. If Facebook wants to get top producers, directors and production companies investing their time and resources in developing a new format of high-quality video series for IGTV, it needs an incentives-aligned business model they can trust to stay consistent.
Imagine a free, ad-supported tier for videos by influencers and media partners (plus select “IGTV Originals”) to draw in Instagram users, then a $3-8/month subscription tier for access to all IGTV Originals and an ad-free viewing experience. (By comparison, Quibi plans to charge a $5/month subscription with ads with the option of $8/month for its ad-free tier.)
Looking at the growth of Netflix in traditional TV streaming, a subscription-based business should be a welcome addition to Facebook’s portfolio of leading content-sharing platforms. This wouldn’t be its first expansion beyond ad revenue: the newest major division of Facebook, Oculus, generates revenue from hardware sales and a 30 percent cut of the revenue to VR apps in the Oculus app store (similar to Apple’s cut of iOS app revenue). Facebook is also testing a dating app which — based on the freemium business model Tinder, Bumble, Hinge, and other leading dating apps have proven to work — would be natural to add a subscription tier to.
Facebook is facing more public scrutiny (and government regulation) on data privacy and its ad targeting than ever before. Incorporating subscriptions and transaction fees as revenue streams benefits the company financially, creates a healthier alignment of incentives with users and eases the public criticism of how Facebook is using people’s data. Facebook is already testing subscriptions to Facebook Groups and has even explored offering a subscription alternative to advertising across its core social platforms. It is quite unlikely to do the latter, but developing revenue streams beyond ads is clearly something the company’s leadership is contemplating.
The path forward
IGTV needs to make product changes if it heads in this direction. Right now videos can’t link together to form a series (i.e. one show with multiple episodes) and discoverability is very weak. Beyond seeing recent videos by those you follow, videos that are trending and a selection of recommendations, you can only search for channels to follow (based on name). There’s no way to search for specific videos or shows, no way to browse channels or videos by topic and no way to see what people you follow are watching.
It would be a missed opportunity not to vie for this. The upside is enormous — owning the Netflix of a new content category — while the downside is fairly minimal for a company with such a large balance sheet.
Powered by WPeMatico
Instagram tests tapping instead of scrolling through posts, first in Explore
The effortless way you fast forward through Stories could be coming to more of Instagram . A screenshot from user Suprateek Bose shows Instagram “Introducing a new way to move through posts — Tap through posts, just like you tap through stories.”
Now Instagram confirms to TechCrunch that it’s testing tap to advance within Explore, and a spokesperson provided this statement: “We’re always testing ways to improve the experience on Instagram and bring you closer to the people and things you love.” As for whether this could come to the main feed, an Instagram spokesperson tells me that not something it’s actively thinking about right now.
Instagram already uses an auto-advance feature in its Videos You Might Like section of Explore, jumping down to the next video when the last one finishes. It previously offered themed video collections around Halloween and top creators too. But for photos where it’s not clear when you’re done viewing, a quick tap is the closest thing to Instagram propelling you through posts automatically.
Next: turn your mind off completely. Succumb to the feed.
Open instagram, and it does the browsing of the feed for you.
Like by smiling.
Comment by grunting one of 5 known emotions at your phone. https://t.co/EzrJWccjbh
— PaSKULL D’Silva
(@pasql) October 11, 2018
Tap to advance, pioneered by Snapchat, eliminates the need for big thumbstrokes on your touch screen that can get tiring after awhile. It also means users always see media full-screen rather than having to fiddle with scrolling the perfect amount to see an entire post. Together, these create a more relaxing browsing experience that can devour hours of a user’s time. Instagram doesn’t show ads in Explore, but tap-to-advance could save your thumb stamina for more feed and Stories viewing where it does earn money. While Snapchat remains the teen favorite, Instagram could cater to seniors with arthritis with this new method of navigation (no, seriously, swiping can be tough on the joints for some people).
The fact that tap-to-advance is now testing but Instagram still hasn’t actually rolled out the Your Activity screentime digital well-being dashboard it says was launching two months ago begs the question of whether it really wants us to be more purposeful with our social media usage.
Powered by WPeMatico
Jeffrey Katzenberg and Meg Whitman announce the name of their stealthy mobile video startup
Onstage at Vanity Fair’s New Establishment Summit in Los Angeles, Jeffrey Katzenberg and Meg Whitman unveiled the name of their highly anticipated mobile video company known until now as NewTV.
The name is Quibi, short for “quick bites,” per a note on its new website: “Something cool is coming from Hollywood and Silicon Valley — quick bites of captivating entertainment, created for mobile by the best talent, designed to fit perfectly into any moment of your day.”
The short-form video service, launching next year, will operate on a two-tiered subscription model similar to Hulu, per Deadline. Quibi is cooking up original content with Oscar-winning filmmaker Guillermo del Toro, Southpaw director Antoine Fuqua and Spider-Man director Sam Raimi, as well as Get Out producer Jason Blum and Van Toffler, the CEO of digital media production company Gunpowder & Sky, a spokesperson for the company confirmed to TechCrunch.
The Hollywood Reporter says the del Toro project “is a modern zombie story,” the Fuqua project is “a modern version of Dog Day Afternoon” and the Blum project, titled Wolves and Villagers, could be compared to Fatal Attraction.
Katzenberg, the former chairman of Walt Disney Studios and founder of WndrCo, a consumer tech investment and holding company, has raised $1 billion for Quibi from Disney, 21st Century Fox, Entertainment One, NBCUniversal, Sony Pictures Entertainment, Alibaba Goldman Sachs, JPMorgan Chase, Madrone Capital and several others. He hired Meg Whitman as Quibi’s CEO in January.
Quibi, given Katzenberg and Whitman’s entertainment and business acumen, is expected to compete with the biggest players in the space, including Instagram, Netflix and Snap, which today announced Snap Originals. The new effort will have the ephemeral messaging service rolling out 12 new scripted shows on its app, from Keeping Up with the Kardashians creator Bunim/Murray, Friday Night Lights writer Carter Harris and more.
Quibi is hiring aggressively, recently bringing on former Instagram product manager Blake Barnes and former Hulu chief technology officer Rob Post.
Powered by WPeMatico
Instagram prototypes handing your location history to Facebook
This is sure to exacerbate fears that Facebook will further exploit Instagram now that its founders have resigned. Instagram has been spotted prototyping a new privacy setting that would allow it to share your location history with Facebook. That means your exact GPS coordinates collected by Instagram, even when you’re not using the app, would help Facebook to target you with ads and recommend you relevant content. Worryingly, the Location History sharing setting was defaulted to On in the prototype. The geo-tagged data would appear to users in their Facebook Profile’s Activity Log, which include creepy daily maps of the places you been.
This commingling of data could upset users who want to limit Facebook’s surveillance of their lives. With Facebook installing its former VP of News Feed and close friend of Mark Zuckerberg, Adam Mosseri, as the head of Instagram, some critics have worried that Facebook would attempt to squeeze more value out of Instagram. Tat includes driving referral traffic to the main app via spammy notifications, inserting additional ads, or pulling in more data. Facebook was sued for breaking its promise to European regulators that it would not commingle WhatsApp and Facebook data, leading to an $122 million fine.
A Facebook spokesperson tells TechCrunch that “To confirm, we haven’t introduced updates to our location settings. As you know, we often work on ideas that may evolve over time or ultimately not be tested or released. Instagram does not currently store Location History; we’ll keep people updated with any changes to our location settings in the future.” That effectively confirms Location History sharing is something Instagram has prototyped, and that it’s considering launching but hasn’t yet.
The screenshots come courtesy of mobile researcher and frequent TechCrunch tipster Jane Manchun Wong. Her prior finds like prototypes of Instagram Video Calling and Music Stickers have drawn “no comments” from Instagram but then were officially launched in the following months. That lends credence to the idea that Instagram is serious about Location History.
Located in the Privacy and Security settings, the Location History option “Allows Facebook Products, including Instagram and Messenger, to build and use a history of precise locations received through Location Services on your device.”
A ‘Learn More’ button provides additional info (emphasis mine):
“Location History is a setting that allows Facebook to build a history of precise locations received through Location Services on your device. When Location History is on, Facebook will periodically add your current precise location to your Location History even if you leave the app. You can turn off Location History at any time in your Location Settings on the app. When Location History is turned off, Facebook will stop adding new information to your Location History which you can view in your Location Settings. Facebook may still receive your most recent precise location so that you can, for example, post content that’s tagged with your location. Location History helps you explore what’s around you, get more relevant ads, and helps improve Facebook. Location History must be turned on for some location feature to work on Facebook, including Find Wi-Fi and Nearby Friends.”
As part of a 2011 settlement with the FTC over privacy violations, Facebook agreed that “Material retroactive changes to the audience that can view the information users have previously shared on Facebook” must now be opt-in. But since Location History is never visible to other users and only deals with data Facebook sees, it’s exempt from that agreement and could be quietly added. Most users might never dig deep enough into their privacy settings to turn the opt-out feature off.
Delivering the exact history of where Instagram users went could assist Facebook with targeting them with local ads across its family of apps. If users are found to visit certain businesses, countries, neighborhoods, or schools, Facebook could use that data to infer which products they might want to buy and promote them. It could even show ads for restaurants or shops close to where users spend their days. Just yesterday, we reported that Facebook was testing a redesign of its Nearby Friends feature that replaces the list view of friends’ locations with a map. Pulling in Location History from Instagram could help keep that map up to date.
Sources tell TechCrunch that Instagram founders Kevin Systrom and Mike Krieger left the company following increasing tensions with Zuckerberg about dwindling autonomy of their app within the Facebook corporation. Systrom apparently clashed with Zuckerberg over how Instagram was supposed to contribute to Facebook success, especially as younger users began abandoning the older social network for the newer visual media app. Facebook is under pressure to keep up revenue growth despite it running out of News Feed ad inventory and users switching to Stories that advertisers are still acclimating to. Facebook is in heated competition with Google for last-mile local advertising and will take any advantage it can get.
Instagram has served as a life raft for Facebook’s brand this year amidst an onslaught of scandals including fake news, election interference, social media addiction, and most recently, a security breach that gave hackers the access tokens for 50 million users that could have let them take over their accounts. A survey of 1,153 US adults conducted in March 2018 found that 57 percent of them didn’t know Instagram was owned by Facebook. But if Facebook treats Instagram as a source of data and traffic it can strip mine, the negative perceptions associated with the parent could spill over onto the child.
Powered by WPeMatico
Instagram launches scannable Nametags, tests school networks for teen growth
When your feed and Stories trays go stale, or your follower count stops rising, you drift away from Instagram . That’s why the app is rolling out two big new features designed to connect you to new people and diversify your graph so there’s always something surprising to look at and like.
Today Instagram launches its QR Snapcode-style Nametags globally on iOS and Android, after TechCrunch broke the news on the feature back in March and April. Though not technically QR codes, they’re scanned like them to let you follow people you meet offline. Here’s a look at how they work:
Now you can quickly add friends on Instagram by scanning their nametags. You can also customize your own nametag with emojis, colors and selfies. pic.twitter.com/fq4HFNiDMy
— Instagram (@instagram) October 4, 2018
The customizable codes are accessible from the three-line hamburger menu on your profile. They can be scanned when other users tap and hold on your code through the Instagram Stories camera or Scan Nametag button on your own Nametag to instantly follow you. You can add colors, emojis or AR-embellished selfies to your Instagram Nametag, show it off on your phone to help people follow you in person, put it on your website or social media or message it to friends through SMS, WhatsApp, Messenger and more.
It’s actually surprising it took this long for Instagram to copy Snapchat’s Snapcodes that debuted for profiles in 2015 and were later expanded to open websites and unlock AR filters. Facebook Messenger launched its own QR codes in April 2017, though it never quite caught on. But they make a ton of sense on Instagram because it’s tougher to share links on the app, people often treat it as their primary presence on the web that they want to promote and because businesses are increasingly relying on the app for commerce. It’s easy to imagine brands putting their Instagram Nametags on billboards and posters, or buying ads to promote them around the web.
Facebook Messenger and Snapchat’s QR codes
Secondly, Instagram is starting to test school communities in a variety of universities across the U.S. They allow you to join your university’s network to add a line to your profile listing your school, class year and your major, sports team or fraternity/sorority. You’ll show up in a directory listing everyone from your school that you can use to follow or message people, though those DMs may go to their pending inbox.
The school communities feature harkens back to Facebook’s origins, when users could actually set their privacy to show all their content to everyone in their school. Here you won’t be able to instantly expose your private Instagram to everyone from your school. You could imagine a freshman in college going through their network to discover new potential friends to follow, or an alumni seeking others from their alma mater in search of business or romance.
Instagram relies on info users have publicly shared about their school and the people they followed to verify if they were in fact a student or recent alumni of a university. Rather than actively signing up, users will get a notification prompting them to join the network. That’s a lot less reliable than using university email addresses for verification like Facebook used to, but also a lot simpler for users.
The company does provide a tool for alerting it to misuse of the school communities feature in case any sketchy older users are employing it as a stalking tool. Next to each user’s name is an overflow menu of three dots where people can report accounts they don’t think belong in a certain community.
The invite method is reminiscent of the growth hacks that teen Q&A app TBH that Facebook acquired was using. In what an internal memo called a “psychological trick,” TBH scraped Instagram user profiles for school names, looking at school location pages to find student accounts to invite them to join TBH. The teen sensation was eventually shut down due to low usage; the memo called the tactic too “scrappy” for a big public company, but now it’s found a home inside of Instagram.
Today’s launch is the first under Instagram’s new leader Adam Mosseri following the resignation of the company’s founders. Critics are watching to see if Mosseri, the former Facebook VP of News Feed and member of Mark Zuckerberg’s inner circle, will push harder to drive growth and monetization for Instagram. Given Instagram’s priority here is expanding its social graphs and keeping users engaged, it seems willing to trade occasionally allowing or disallowing the wrong people to reduce friction and juice growth.
Powered by WPeMatico
Meet Adam Mosseri, the new head of Instagram
Former Facebook VP of News Feed and recently appointed Instagram VP of Product Adam Mosseri has been named the new head of Instagram following the resignation of Instagram’s founders Kevin Systrom and Mike Krieger last week. “We are thrilled to hand over the reins to a product leader with a strong design background and a focus on craft and simplicity — as well as a deep understanding of the importance of community,” the founders wrote. “These are the values and principles that have been essential to us at Instagram since the day we started, and we’re excited for Adam to carry them forward.”
Systrom will recruit a new executive team, including heads of product, operations and engineering, to replace himself, Instagram COO Marne Levine, who went back to lead Facebook partnerships last month, and engineering leader James Everingham, who moved to Facebook’s blockchain team in May before finishing at Instagram in July. Instagram’s product director Robby Stein is a strong candidate for the product head position, as he’s been overseeing Stories, feed, Live, direct messaging, camera and profile.
Instagram’s founders announced last week they were leaving the Facebook corporation after sources told TechCrunch the pair had dealt with dwindling autonomy from Facebook and rising tensions with its CEO Mark Zuckerberg. The smiling photo above seems meant to show peace has been restored to Instaland, and counter the increasing perception that Facebook breaks its promises to acquired founders. TechCrunch previously reported Mosseri was first in line for the role according to sources, and The Information later wrote that some inside the company saw him as a lock.
Mosseri’s experience dealing with the unintended consequences of the News Feed, such as fake news in the wake of the 2016 election, could help him predict how Instagram’s growth will affect culture, politics and user well-being. Over the years of interviewing him, Mosseri has always come across as sharp, serious and empathetic. He comes across as a true believer that Facebook and its family of apps can make a positive impact in the world, but cognizant of the hard work and complex choices required to keep them from being misused.
Born and raised in New York, Mosseri started his own design consultancy while attending NYU’s Gallatin School of Interdisciplinary Study to learn about media and information design. Mosseri joined Facebook in 2008 after briefly working at a startup called TokBox. Tasked with helping Facebook embrace mobile as design director, he’s since become part of Zuckerberg’s inner circle of friends and lieutenants. Mosseri later moved into product management and oversaw Facebook’s News Feed, turn it into the world’s most popular social technology and the driver of billions in profit from advertising. However, amidst his successes, Mosseri also oversaw Facebook Home, the flopped mobile operating system, and was the officer on duty when fake news and Russian election attackers proliferated.
After going on parental leave this year, Mosseri returned to take over the role of Instagram VP of Product from Kevin Weil as he moved to Facebook’s blockchain team. A source tells TechCrunch he was well-received and productive since joining Instagram, and has gotten along well with Systrom. Mosseri now lives in San Francisco, close enough to work from both Instagram’s city office and South Bay headquarters. He’ll report to Facebook’s chief product officer Chris Cox as he did at Facebook. Cox wrote, “Kevin and Mike, we will never fill your shoes. But we will work hard to uphold the craft, simplicity, elegance, and the incredible community of Instagram: both the team and the product you’ve built.”
“The impact of their work over the past eight years has been incredible. They built a product people love that brings joy and connection to so many lives,” Mosseri wrote about Instagram’s founders in an Instagram post. “I’m humbled and excited about the opportunity to now lead the Instagram team. I want to thank them for trusting me to carry forward the values that they have established. I will do my best to make them, the team, and the Instagram community proud.”
Mosseri will be tasked with balancing the needs of Instagram, such as headcount, engineering resources and growth, with the priorities of its parent company Facebook, such as cross-promotion to Instagram’s younger audience and revenue to contribute to the corporation’s earnings reports. Some see Mosseri as more sympathetic to Facebook’s desire than Instagram’s founders, given his long-stint at the parent company and his close relationship with Zuckerberg. Interestingly, Zuckerberg wasn’t mentioned or pictured in the transition announcement and hasn’t posted anything congratulating Mosseri as is common in Facebook’s employee culture. Zuckerberg may be seeking to reduce the appearance that he’s playing puppet master and instead does actually let Instagram run independently.
The question now is whether users will end up seeing more notifications and shortcuts linking back to Facebook, or more ads in the Stories and feed. Instagram hasn’t highlighted the ability to syndicate your Stories to Facebook, which could be a boon for that parallel product. Instagram Stories now has 400 million daily users compared to Facebook Stories and Messenger Stories’ combined 150 million users. Tying them more closely could see more content flow into Facebook, but it might also make users second guess whether what they’re sharing is appropriate for all of their Facebook friends, which might include family or professional colleagues.
Mosseri’s most pressing responsibility will be reassuring users that the culture of Instagram and its app won’t be assimilated into Facebook now that he’s running things instead of the founders. He’ll also need to snap into action to protect Instagram from being used as a pawn for election interference in the run-up to the 2018 U.S. mid-terms. While he’ll never have the same mandate and faith from employees that the founders did, Mosseri is the experienced leader Instagram needs to grapple with its scaled-up influence.
View this post on InstagramA post shared by Adam Mosseri (@mosseri) on
Powered by WPeMatico
Snapchat lets you take a photo of an object to buy it on Amazon
See, snap, sale. In a rare partnership for Amazon, the commerce giant will help Snapchat challenge Instagram and Pinterest for social shopping supremacy. Today Snapchat announced it’s slowly rolling out a new visual product search feature, confirming TechCrunch’s July scoop about this project, codenamed “Eagle.”
Users can use Snapchat’s camera to scan a physical object or barcode, which brings up a card showing that item and similar ones along with their title, price, thumbnail image, average review score and Prime availability. When they tap on one, they’ll be sent to Amazon’s app or site to buy it. Snapchat determines if you’re scanning a song, QR Snapcode or object, and then Amazon’s machine vision tech recognizes logos, artwork, package covers or other unique identifying marks to find the product. It’s rolling out to a small percentage of U.S. users first before Snap considers other countries.
Snap refused to disclose any financial terms of the partnership. It could be earning a referral fee for each thing you buy from Amazon, or it could just be doing the legwork for free in exchange for added utility. A Snapchat spokesperson tells me the latter is the motivation (without ruling out the former), as Snapchat wants its camera to become the new cursor — your point of interface between the real and digital worlds.
Social commerce is heating up as Instagram launches Shopping tags in Stories and a dedicated Shopping channel in Explore, while Pinterest opens up Shop the Look pins and hits 250 million monthly users. The feature should mesh well with Snap’s young and culture-obsessed audience. In the U.S., its users are 20 percent more likely to have made a mobile purchase than non-users, and 60 percent more likely to make impulse purchases according to studies by Murphy Research and GfK.
The feature functions similarly to Pinterest’s Lens visual search tool. In the video demo above, you can see Snapchat identifying Under Armour’s HOVR shoe (amongst all its other models), and the barcode for CoverGirl’s clean matte liquid makeup. That matches our scoop based on code dug out of Snapchat’s Android app by TechCrunch tipster Ishan Agarwal. Snapchat’s shares popped three percent the day we published that scoop, and again this morning before falling back to half that gain.
The feature could prove useful for when you don’t know the name of the product you’re looking at, as with shoes. That could turn visual search into a new form of word-of-mouth marketing where every time an owner shows off a product, they’re effectively erecting a billboard for it. Eventually, visual search could help users shop across language barriers.
Amazon is clearly warming up to social partnerships, recognizing its inadequacy in that department. Along with being named Snapchat’s official search partner, it’s also going to be bringing Alexa voice control to Facebook’s Portal video chat screen, which is reportedly debuting this week according to Cheddar’s Alex Heath.
Snapchat could use the help. It’s now losing users and money, down from 191 million to 188 million daily active users last quarter while burning $353 million. Partnering instead of trying to build all its technology in-house could help reduce that financial loss, while added utility could aid with user growth. And if Snap can convince advertisers, they might pay to educate people on how to scan their products with Snapchat.
Snap keeps saying it wants to be a “Camera Company,” but it’s really an augmented reality software layer through which to see the world. The question will be whether it can change our behavior so that when we see something special, we interact with it through the camera, not just capture it.
Powered by WPeMatico
Instagram denies it’s building Regramming. Here’s why it’d be a disaster
Instagram tells me Regramming, or the ability to instantly repost someone else’s feed post to your followers like a retweet, is “not happening”, not being built, and not being tested. And that’s good news for all Instagrammers. The denial comes after it initially issued a “no comment” to The Verge’s Casey Newton, who published that he’d seen screenshots of a native Instagram resharing sent to him by a source.
Regramming would be a fundamental shift in how Instagram works, not necessarily in terms of functionality, but in terms of the accepted norms of what and how to post. You could always screenshot, cite the original creator, and post. But Instagram has always been about sharing your window to the world — what you’ve lived and seen. Regramming would legitimize suddenly assuming someone else’s eyes.
The result would be that users couldn’t trust that when they follow someone, that’s whose vision would appear in their feed. Instagram would feel a lot more random and unpredictable. And it’d become more like its big brother Facebook whose News Feed has waned in popularity – susceptible to viral clickbait bullshit, vulnerable to foreign misinformation campaigns, and worst of all, impersonal.
Photographer: Andrew Harrer/Bloomberg via Getty Images
Newton’s report suggested Instagram reposts would appear under the profile picture of the original sharer, and regrams could be regrammed once more in turn, showing a stack of both profile thumbnails of who previously shared it. That would at least prevent massive chains of reposts turning posts into all-consuming feed bombs.
Regramming could certainly widen what appears in your feed, which some might consider more interesting. It could spur growth by creating a much easier way for users to share in feed, especially if they don’t live a glamorous life themself. I can see a case for this being a feature for businesses only, which are already impersonal and act as curators. And Instagram’s algorithm could hide the least engaging regrams.
These benefits are why Instagram has internally considered building regramming for years. CEO Kevin Systrom told Wired last year “We debate the re-share thing a lot . . . But really that decision is about keeping your feed focused on the people you know rather than the people you know finding other stuff for you to see. And I think that is more of a testament of our focus on authenticity.”
See, right now, Instagram profiles are cohesive. You can easily get a feel for what someone posts and make an educated decision about whether to follow them from a quick glance at their grid. What they share reflects on them, so they’re cautious and deliberate. Everyone is putting on a show for Likes, so maybe it’s not quite ‘authentic’, but at least the content is personal. Regramming would make it impossible to tell what someone would post next, and put your feed at the mercy of their impulses without the requisite accountability. If they regram something lame, ugly, or annoying, it’s the original author who’d be blamed.
Instagram already offers a demand release valve in the form of re-sharing posts to your Story as stickers
Instagram already has a release valve for demand for regramming in the form of the ability to turn people’s public feed posts into Stickers you can paste into your Story. Launched in May, you can add your commentary, complimenting on dunking on the author. There, regrams are ephemeral, and your followers have to pull them out of their Stories tray rather than having them force fed via the feed. Effectively, you can reshare others’ content, but not make it a central facet of Instagram or emblem of your identity. And if you want to just make sure a few friends see something awesome you’ve discovered, you can send them people’s feed posts as Direct messages.
Making it much easier to repost to your feed instead of sharing something original could turn Instagram into an echo chamber. It’d turn Instagram even more into a popularity contest, with users jockeying for viral distribution and a chance to plug their SoundCloud mixtapes like on Twitter. Personal self-expression would be overshadowed even further by people playing to the peanut gallery. Businesses might get lazy rather than finding their own styles. If you want to discover something new and unexpected, there’s a whole Explore page full of it.
Newton is a great reporter, and I suspect the screenshots he saw were real, but I think Instagram should have given him the firm denial right away. My guess is that it wanted to give its standard no comment because if it always outright denies inaccurate rumors and speculation, that means journalists can assume they’re right when it does “no comment.”
But once Newton published his report, backlash quickly mounted about how regramming could ruin Instagram. Rather than leaving users worried, confused, and constantly asking when the feature would launch and how it would work, the company decided to issue firm denials after the fact. It became worth diverging from its PR playbook. Maybe it had already chosen to scrap its regramming prototype, maybe the screenshots were just of an early mock-up never meant to be seriously considered, or maybe it hadn’t actually finalized that decision to abort until the public weighed in against the feature yesterday.
In any case, introducing regramming would risk an unforced error. The elemental switch from chronological to the algorithmic feed, while criticized, was critical to Instagram being able to show the best of the massive influx of content. Instagram would eventually break without it. There’s no corresponding urgency to fix what ain’t broke when it comes to not allowing regramming.
Instagram is already growing like crazy. It just hit a billion monthly users. Stories now has 400 million daily users, and that feature is growing six times faster than Snapchat as a whole. The app is utterly dominant in the photo and short video sharing world. Regramming would be an unnecessary gamble.
Powered by WPeMatico
Instagram may divide hashtags from captions to end overhashing
Geofenced sharing, Quiz stickers, Stories Highlight stickers and a separate interface for adding hashtags to posts are amongst a slew of new features Instagram has prototyped or is now testing. The last one could finally #cure #the #hashtag #madness that’s infected many of Instagram’s 1 billion users, causing them desperately to fill up their captions with tagged words that make the feed tough to read in hopes of scoring a few extra views or followers. [Update: Instagram has also confirmed the launch of GIFs in Direct messaging. Details below.]
The pace of iteration at Instagram is staggering, and helping it to leave Snapchat in the dust. With Facebook’s deep pockets funding its product, design and engineering teams, Instagram is able to keep its app full of fresh toys to play with. Here’s a look at three prototypes, one test and one confirmed roll out from Instagram.
Hashtag selector
The feature isn’t released or even necessarily testing yet, and Instagram refused to comment on it. But frequent TechCrunch tipster and mobile researcher Jane Manchun Wong was able to dig the designated hashtag selector prototype out of the Instagram Android app’s code. It shows a dedicated “Add Hashtags” option underneath the caption composer and people tagger. Similar past discoveries by Wong have led to TechCrunch scoops about the eventual release of Instagram video calling, name tags, music stickers and more, though there’s always a chance Instagram scraps this feature before it ever launches.
Disambiguating hashtags from captions could make adding them to posts less invasive and distracting, and thereby get more users doing it. That could in turn help Instagram tune its feed algorithm to show you more posts with hashtags you seem to care about, get more users following hashtags and allow it to better sort the Explore page with its new topic channels like Sports, Beauty and Shopping. But perhaps most importantly, it could just make Instagram less annoying. Everyone has that friend that slaps on so many hashtags that their captions become an incoherent mess.
Geofenced posts
Wong also dug out a powerful new feature that could help social media managers, businesses and pro creators reach the right audience. Instagram has prototyped a “Choose Locations” option for posts that lets you select from a list of countries where you want your post to be visible. Instagram declined to comment.
The geofencing feature might enable Instagrammers to design different content and captions for different countries and languages. Facebook has offered geofencing for posts for many years, and Instagram already offers ad targeting down to the ZIP code or mile radius. But if this location chooser launches for everyone’s posts, it could let people and professional accounts express their prismatic identity differently across the globe.
Stories Highlight stickers
Instagram gave me a confirmation that this final find by Wong is officially in testing. It allows users to turn someone else’s Stories Highlight from their profile into a sticker to overlay on their own Story. It’s an extension of the Quote-tweet style feature Instagram started testing in March that lets you turn people’s public feed posts into Stories stickers so you can add your commentary — or dunk on someone dumb. Stories Highlight stickers could create a new path to virality for star creators who could convince their followers to re-share their Highlights and turn their friends into fellow fans.
Quiz stickers
This prototype discovered by WABetaInfo‘s Twitter account allows users to ask a question in their Story and designate a correct answer. The Quiz sticker functions similarly to Instagram’s recently added Poll and Question stickers, but instead of tallying the results or letting you re-post someone’s answer, they’ll immediately see whether they guessed the right answer to your test. This ties into Instagram’s strategy to crush Snapchat by making its own Stories more interactive and turning the connection between fans and followers into a two-way street.
Video tagging
Instagram did confirm the launch of one new feature, tagging people in videos. TechCrunch spotted this last week and Instagram said it was testing, but upon our inquiry told us that it’s now fully rolled out. Video tagging could generate extra visits for Instagram as few people have the willpower to ignore a notification that they were named in a new piece of content. The feature could also help Instagram figure out who to show the videos to by allowing it to place them high in the feed of the best friends of people tagged.
GIFs in Direct
Today Instagram also confirmed that GIFs are rolling out to Direct messaging on iOS and Android, allowing you to search through a GIPHY-powered archive of animated images, or swipe through a trending GIFs section. You can also tap the “random” button after entering some keywords to get a surprise GIF added to your conversation. And after previously obscuring who actually made those GIFs, users can now tap and hold on to them to see the creator and other GIFs they’ve made. Instagram first offered GIFs as Stories stickers in January, and Wong had previously spotted them in Direct in Instagram’s code back in July. Clearly the racist GIF fiasco that led Instagram to temporarily shut down the GIF stickers hasn’t deterred it from expanding its partnership with GIPHY.
Combined, this flurry of new and potential features proves Instagram isn’t allowing its dominance to diminish its shipping schedule. It also demonstrates that Instagram VP of product Kevin Weil’s move to Facebook’s blockchain team and his replacement by former News Feed VP Adam Mosseri hasn’t disrupted the app’s brisk pace of innovation.
The jury is still out about whether Instagram’s biggest new initiatives will take off. IGTV is off to a slow start, but will need time to build a long-form video archive to rival YouTube. And we’ll have to wait and see if users grow addicted to Instagram Explore’s new Shopping channel. But constantly updating the app takes pressure off of any one feature to carry the weight of a billion people’s eyes. Who wants to build a direct competitor to something evolving this fast?
Powered by WPeMatico