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Snap to launch a new Creator Marketplace this month, initially focused on Lens Creators

Snap on Wednesday announced its plan to soon launch a Creator Marketplace, which will make it easier for businesses to find and partner with Snapchat creators, including Lens creators, AR creators and later, prominent Snapchat creators known as Snap Stars. At launch, the marketplace will focus on connecting brands and AR creators for AR ads. It will then expand to support all Snap Creators by 2022.

The company had previously helped connect its creator community with advertisers through its Snapchat Storytellers program, which first launched into pilot testing in 2018 — already a late arrival to the space. However, that program’s focus was similar to Facebook’s Brand Collabs Manager, as it focused on helping businesses find Snap creators who could produce video content.

Snap’s new marketplace, meanwhile, has a broader focus in terms of connecting all sorts of creators with the Snap advertising ecosystem. This includes Lens Creators, Developers and Partners, and then later, Snap’s popular creators with public profiles.

Snap says the Creator Marketplace will open to businesses later this month to help them partner with a select group of AR Creators in Snap’s Lens Network. These creators can help businesses build AR experiences without the need for extensive creative resources, which makes access to Snap’s AR ads more accessible to businesses, including smaller businesses without in-house developer talent.

Lens creators have already found opportunity working for businesses that want to grow their Snapchat presence — even allowing some creators to quit their day jobs and just build Lenses for a living. Snap has been further investing in this area of its business, having announced in December a $3.5 million fund directed toward AR Lens creation. The company said at the time there were tens of thousands of Lens creators who had collectively made over 1.5 million Lenses to date.

Using Lenses has grown more popular, too, the company had noted, saying that more than 180 million people interact with a Snapchat Lens every day — up from 70 million daily active users of Lenses when the Lens Explorer section first launched in the app in 2018.

Now, Snap says that over 200 million Snapchat users interact with augmented reality on a daily basis, on average, out of its 280 million daily users. The majority (over 90%) of its U.S. users are 13 to 25-year-olds. In total, users are posting over 5 billion Snaps per day.

Snap says the Creator Marketplace will remain focused on connecting businesses with AR Lens Creators throughout 2021.

The following year, it will expand to include the community of professional creators and storytellers who understand the current trends and interests of the Snap user base and can help businesses with their ad campaigns. The company will not take a cut of the deals facilitated through the Marketplace, it says.

This would include the creators making content for Snap’s new TikTok rival, Spotlight, which launched in November 2020. Snap encouraged adoption of the feature by shelling out $1 million per day to creators of top videos. In March 2021, over 125 million Snapchat users watched Spotlight, it says.

Image Credits: Snapchat

Spotlight isn’t the only way Snap is challenging TikTok.

The company also on Wednesday announced it’s snagging two of TikTok’s biggest stars for its upcoming Snap Originals lineup: Charli and Dixie D’Amelio. The siblings, who have gained over 20 million follows on Snapchat this past year, will star in the series “Charli vs. Dixie.” Other new Originals will feature names like artist Megan Thee Stallion, actor Ryan Reynolds, twins and influencers Niki and Gabi DeMartino, and YouTube beauty vlogger Manny Mua, among others.

Snap’s shows were watched by over 400 million people in 2020, including 93% of the Gen Z population in the U.S., it noted.

“We’re happy to announce Snap’s Creator Marketplace, which will drive win-win-win opportunities for marketers, Creators, and Snap,” said Peter Naylor, Snap’s VP of Sales in the Americas, of the marketplace news. “For brands, it’s an opportunity to leverage the expertise of our network of AR Creators; for Creators, it gives them a way to further build a sustainable audience and business on the platform; and for Snap, it means more advertising partners can produce and execute compelling creative on Snapchat without the need for extensive resources,” he added.

 

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Facebook introduces a new miniplayer that streams Spotify from the Facebook app

Facebook announced last week an expanded partnership with streaming music service Spotify that would bring a new way to listen to music or podcasts directly within Facebook’s app, which it called Project Boombox. Today, the companies are rolling out this integration via a new “miniplayer” experience that will allow Facebook users to stream from Spotify through the Facebook app on iOS or Android. The feature will be available to both free Spotify users and Premium subscribers.

The miniplayer itself is an extension of the social sharing option already supported within Spotify’s app. Now, when Spotify users are listening to content they want to share to Facebook, they’ll be able to tap the existing “Share” menu (the three-dot menu at the upper right of the screen) and then tap either “Facebook” or “Facebook News Feed.”

When a user posts an individual track or podcast episode to Facebook through this sharing feature, the post will now display in a new miniplayer that allows other people who come across their post to also play the content as they continue to scroll, or reshare it. (Cue MySpace vibes!)

Spotify’s paid subscribers will be able to access full playback, the company says. Free users, meanwhile, will be able to hear the full shared track, not a clip. But afterwards, they’ll continue to listen to ad-supported content on Shuffle mode, just as they would in Spotify’s own app.

One important thing to note here about how all this works is that the integration allows the music or podcast content to actually play from within the Spotify app. When a user presses play on the miniplayer, an app switch takes place so the user can log into Spotify. The miniplayer activates and controls the launch and playback in the Spotify app — which is how the playback is able continue even as the user scrolls on Facebook or if they minimize the Facebook app altogether.

This setup means users will need to have the Spotify mobile app installed on their phone and a Spotify account for the miniplayer to work. For first-time Spotify users, they’ll have to sign up for a free account in order to listen to the music shared via the miniplayer.

Spotify notes that it’s not possible to sign up for a paid account through the mini-player experience itself, so there’s no revenue share with Facebook on new subscriptions. (Users have to download the Spotify app and sign up for Paid accounts from there if they want to upgrade.)

The partnership allows Spotify to leverage Facebook’s reach to gain distribution and to drive both sign-ups and repeat usage of its app just as the COVID bump to subscriber growth may be wearing off. However, it’s still responsible for the royalties paid on streams, just as it was before, the company told TechCrunch, because its app is the one actually doing the streaming. It’s also fully in charge of the music catalog and audio ads that play alongside the content.

For Facebook, this deal means it now has a valuable tool to keep users spending time on its site — a metric that has been declining over the years, reports have indicated.

Spotify and Facebook have a long history of working together on music efforts. Facebook back in 2011 had been planning an update that would allow music subscription users to engage with music directly on Facebook, much like this. But those plans were later dialed back, possibly over music rights’ or technical issues. Spotify had also been one of the first media partners on Facebook’s ticker, which would show you in real time what friends were up to on Facebook and other services. And Spotify had once offered Facebook Login as the default for its mobile app. Today, as it has for years, Spotify users on the desktop can see what their Facebook friends are streaming on its app, thanks to social networking integrations.

The timing for this renewed and extended partnership is interesting. Now, both Facebook and Spotify have a mutual enemy with Apple, whose privacy-focused changes are impacting Facebook’s ad business and whose investments in Apple Music and Podcasts are a threat to Spotify. As Facebook’s own music efforts in more recent years have shifted toward partnership efforts — like music video integrations enabled by music label agreements — it makes sense that it would turn to a partner like Spotify to power a new streaming feature that supports Facebook’s broader efforts around monetizable tools and services aimed at the creator economy.

The miniplayer feature had been tested in non-U.S. markets, Mexico and Thailand, ahead of its broader global launch today.

In addition to the U.S., the integration is fully rolling out to users in Argentina, Australia, Bolivia, Brazil, Canada, Chile, Colombia, Costa Rica, Dominican Republic, Ecuador, El Salvador, Guatemala, Honduras, Indonesia, Israel, Japan, Malaysia, Mexico, New Zealand, Nicaragua, Panama, Paraguay, Peru, South Africa, Thailand and Uruguay.

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Popl tops $2.7M in sales for its technology that replaces business cards

If you’ve spent any time on TikTok lately, then you’ve probably seen a number of Popl’s ads. The startup has been successfully leveraging social media to get its modern-day business card alternative in front of a wider audience. Packaged as either a phone sticker, keychain or wristband, Popl uses NFC technology to make sharing contact information as easy as using Apple Pay. To date, Popl has sold somewhere over 700,000 units and has generated $2.7 million in sales for its digital business card technology.

Popl co-founder and CEO Jason Alvarez-Cohen, a UCLA grad with a background in computer science, first realized the potential for NFC business cards through a different use case — a device he encountered in someone’s home while attending a party. But it sparked the idea to use NFC technology for sharing information person-to-person, which would be faster than alternatives, like AirDrop or manual entry. And so, Popl was born.

Image Credits: Popl

Though startup history is littered with would-be “business card killers” that eventually died, what makes Popl different from early contenders is that it combines both an app with a physical product — the Popl accessory. This accessory can be purchased in a variety of form factors, including the popular Popl phone sticker that you can apply right to the back of your phone case (or even the top of your PopSocket), and customized with a photo of your choosing.

“I knew that, in the past, people would tap phones and share information like that. But I learned quickly that you can’t do this just phone-to-phone with pure software,” says Alvarez-Cohen. “So I [wondered to myself], what’s the closest way we can get the phone tapping? And that’s how I came up with this back-of-the-phone product.”

Each Popl accessory is actually an NFC tag which enables the handoff of the user’s contact information. When the phones are close, the recipient will get a notification that alerts them to your shared Popl data.

There are, of course, other ways to quickly exchange contact information. You can easily enter in someone’s digits into your phone’s contacts app directly, for example, which may work better for more casual encounters — like meeting someone at a bar. But Popl lets you share a full business cards’ worth of contact data with just a tap, which makes it better for professional encounters, or any other time you want to share more than just your phone number.

While the Popl tags make for a nice gimmick, the Popl mobile app is what makes the overall service useful. And to be clear, the app is only necessary for the Popl’s owner — the recipient doesn’t need the app installed for Popl to work. They will, however, need to have a phone that can read NFC tags, which can leave out some older devices. Or, as a backup, they’ll need the ability to scan the QR code the app provides as a workaround.

Image Credits: Popl

In the Popl app, you can customize which data you want to share with others — including your contact info, social profiles, website links, etc. — all via an easy-to-use interface. Like some business card apps in the past, you can flip between a personal profile and a business profile in Popl in order to share the appropriate information when out networking. To actually make the exchange of contact information with another person, you simply hold up your phone to theirs and they’ll get a notification directing them to your Popl profile webpage. (The phones don’t have to physically touch or bump together, however. It’s more like Apple Pay, where they have to be near each other.)

From the Popl website, that’s shared via the notification that pops up, the recipient can tap on the various options to connect with the sender — for example, adding them on a social network like LinkedIn or Instagram, grabbing their phone number to send a quick text, or even downloading a full contact card to their phone’s address book, among other things.

Image Credits: Popl

The app’s more clever feature, however, is something Popl calls “Direct.”

This patented feature won’t send over the Popl website where the recipient then has to choose how they want to connect. Instead, it opens the destination app directly. For example, if you have LinkedIn Direct on, the recipient will be taken directly to your profile on LinkedIn when they tap the notification. Or if you put your Contact Card on Direct, it will just pop your address book entry onto the screen so the user can choose to save it to their phone.

For paid users, the app also lets you track your history of Popl connections on a map, so you can recall who you met, where and when, along with other analytics.

Image Credits: Popl

Work on Popl, which is co-founded by Alvarez-Cohen’s UCLA roommate, Nick Eischens, now Popl COO, began in late 2019. The startup then launched in February 2020 — just before the coronavirus lockdowns in the U.S. That could have been a disastrous time for a business designed to help people exchange information during in-person meetings when the world was now shifting to Zoom and remote work. But Alvarez-Cohen says they marketed Popl as a “contactless solution.”

“If I have this, and I have to meet someone for my business, I don’t even have to tap it — you can just hover, and it will still send that information,” Alvarez-Cohen says. “So I’m able to share my business card with you without handing you a business card, which is safe.”

But what really helped to sell Popl were its video demos. One TikTok ad, which I’m sure you’ve seen if you use TikTok at all, features the co-founders’ friend Arev sharing her TikTok profile with a new friend just as she’s leaving the gym.

In the video, the recipient — clearly dumbfounded by the technology after she taps his phone — responds “what? what? Whoa! What? How’d you do that?!”

It’s now been viewed over 80 million times.

@popl

HOW DID SHE DO THAT!! @endiccii with her new Popl. #poplchallengue #newtech #technology #foryou #fyp #instant

♬ original sound – popl

Today, Popl’s TikTok videos get high tens of thousands, hundreds of thousands and sometimes still millions of views per video. The company also has an active presence on other social media. For instance, Popl posts regularly to Instagram, where it has over 100,000 followers. Today, the startup’s growth is about 60% driven by Facebook and Instagram marketing and 40% organic, Alvarez-Cohen says.

Now, the company is preparing new products for the post-pandemic era when in-person events return. Though it had before sold Popl’s in bulk for this purpose, it’s now readying an “event bracelet” that just slips on your wrist (and is reusable). The bracelet could be used at any big event — like music festivals or business conferences, where you’re meeting a lot of new people. And because Popl uses NFC, phones have to be close to make the contact info exchange — it won’t just randomly share your info with everyone as you pass by them.

Popl is also fleshing out the business networking side of its app with integrations for Salesforce, Oracle, HubSpot and CSV export, that come with its Popl Pro subscription ($4.99 per month). The in-app subscription is already at $450,000-plus in annual recurring revenue and growing 10% every week, as of early April.

A Y Combinator Winter 2021 participant, Popl is backed by Twitch co-founder Justin Kan (via Goat Capital), YC, Urban Innovation Fund, Cathexis Ventures and others angels, including Wish.com CEO Peter Szulczewski and PlanGrid co-founder Ralph Gootee.

The app is available on iOS and Android, and the Popl accessories are sold on its website and on Target.com.

Update, 4/19/21, 6:45 PM ET: Post updated with a more current revenue figure after publication.

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Twitter said to have held acquisition talks with Clubhouse on potential $4B deal

Twitter held talks with Clubhouse around a potential acquisition of the live drop-in audio networking platform, with a deal value somewhere around $4 billion, according to a report from Bloomberg. TechCrunch has also confirmed the discussions took place from a source familiar with the conversations.

While the talks occurred over the past several months, they’re no longer taking place, though the reason they ended isn’t known according to the report. It’s also worth noting that just a few days ago, Bloomberg reported that Clubhouse was seeking to raise a new round of funding at a valuation of around $4 billion, but the report detailing the potential acquisition talks indicate that the discussions with Twitter collapsed first, leading to a change in strategy to pursue securing additional capital in exchange for equity investment.

Twitter has its own product very similar to Clubhouse — Spaces, a drop-in audio chatroom feature that it has been rolling out gradually to its user base over the past few months. Clubhouse, meanwhile, just launched the first of its monetization efforts, Clubhouse Payments, which lets users send direct payments to other creators on the platform, provided that person has enabled receipt of said payments.

Interestingly, the monetization effort from Clubhouse actually doesn’t provide them with any money; instead, it’s monetization for recipient users who get 100% of the funds directed their way, minus a small cut for processing that goes directly to Stripe, the payment provider Clubhouse is using to enable the virtual tips.

While we aren’t privy to the specifics of these talks between Twitter and Clubhouse, it does seem like an awfully high price tag for the social network to pay for the audio app, especially given its own progress with Spaces. Clubhouse’s early traction has been undeniable, but there are a lot of questions still remaining about its longevity, and it’s also being cloned left and right by other platforms, begging the age-old startup question of whether it’s a feature or a product on its own.

Whatever went down, the timing of this revelation seems likely to prime the pump for Clubhouse’s conversation with potential investors at its target valuation for the round it’s looking to raise. Regardless, it’s exciting to have this kind of activity, buzz and attention paid to a consumer software play after many years of what one could argue has been a relatively lackluster period for the category.

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Google’s Family Link updates reflect the pandemic’s impact on how parents view screen time

Google is making changes to its parental control system, Family Link, that aims to better reflect parents’ changing views on children’s screen time. In the pre-pandemic world, parents were more likely to see screen time as something in need of restriction — they’d rather their kids get offline or go outside to play with friends, perhaps. But the challenges of a locked-down world and the push toward virtual learning have impacted parents’ views. Google says today’s parents are more concerned about how kids are spending time on their devices, not how much time is being spent.

It’s a concession to a world where devices have become a savior of sorts to families who’ve stayed at home to avoid COVID — where they’ve been restricted from seeing extended family and friends, and where schools are closed and playdates and parties were cancelled. Parents came to realize that screen time in and of itself isn’t necessarily something to be avoided; they just wanted more control over how it’s used.

With the Family Link update, parents can now choose to make remote learning apps “always allowed,” so they don’t count toward overall screen time daily limits. This could include not only those apps that are used to attend school or communicate with teachers, but others that have popped up to help kids learn and be entertained, like the supplemental resources the school suggests — or the apps parents allow during break times from virtual class.

Parents will also now have access to more detailed daily, weekly and monthly activity reports that provide both an overview of how the child is spending their time in apps, as well as how screen time usage has changed over a week or month, and what portion of time was spent in the “always allowed” apps. This gives parents a better idea of what screen time was used for education versus play.

On Android, Family Link users will also be able to browse through a selection of teacher-recommended apps from the Google Play catalog for kids under 13 in the U.S. And parents can also now set screen time limits directly from the child’s device on Android.

Image Credits: Google

Though these updates will remain useful in a post-pandemic world where parents hold a more nuanced view of screen time, it’s unfortunate that Google waited until so late in the pandemic to roll out these changes. As more people in the U.S. are being vaccinated, restrictions are lifting — including the re-opening of schools in many places. That means parents’ stress over kids’ increased screen time usage will soon become a moot point. The devices will be replaced with in-person learning, and screen time may become villainized yet again.

Related to today’s news, Google has launched a new website for families whose kids are beginning to use technology (families.google). The company also launched a new content series with meditation app Headspace that will help families with kids practice mindfulness together. Again, that’s a resource that was desperately needed in 2020 during the pandemic’s heights, more so than it is today as the world begins reopening.

Still, the pandemic has forced families to think more about screen time and what sort of on-device experiences they want their children to have. As a result of this increased scrutiny, social apps like TikTok and Instagramthe latter just today, in fact — have rolled out more family-friendly safety features, aimed at encouraging parents to see their apps in a better light, rather than being the first to go when screen time gets locked down. It has also encouraged new hybrid learning and education startups to launch, hoping to build out a new category of edutainment apps that can avoid screen-time lockdowns.

It’s worth noting, too, that the update to Family Link follows the addition of an App Store privacy label on iOS, which confirms the data Google collects on users. The app, until recently, had been one of the many Google iOS apps that had seen updates stalled due to the lack of labeling.


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Opal raises $4.3 million for its ‘digital well-being’ assistant for iPhone

Many people want to develop better screen-time habits, but don’t have a good set of tools to do so. A new startup, Opal, aims to help. The company, now backed by $4.3 million in seed funding, has developed a digital well-being assistant for iOS that allows you to block distracting websites and apps, set schedules around app usage, lock down apps for stricter and more focused quiet periods, and more.

The service works by way of a VPN system that limits your access to apps and sites. But unlike some VPNs on the market, Opal is committed to not collecting any personal data on its users or their private browsing data. Instead, its business model is based on paid subscriptions, not selling user data, it says.

Timed with its public debut, Opal also today announced its initial financing in a round led by Nicolas Wittenborn at Adjacent, a mobile-focused VC fund. Other investors included Harry Stebbings, Steve Schlafman, Alex Zubillaga, Kevin Carter, Thibaud Elziere, Jean-Charles Samuelian-Werve, Alban Denoyel, Isai, Secocha Ventures, Speedinvest, and others.

Image Credits: Opal, founder Kenneth Schlenker

The idea for Opal comes from Paris-based Kenneth Schlenker, a longtime technologist who previously founded and sold an art marketplace startup ArtList and later led mobility company Bird’s expansion in France.

Schlenker, who grew up in a small, quiet village in the Alps, says he got into technology at a young age.

“I sort of got obsessed, like many of us, by the potential of technology and its amazing power of attraction — making connections, learning new things, all sorts of incredible opportunities,” he explains. “But I’ve then spent the last 10 years and more trying to seek a balance between this need for connection and this need for disconnection.”

In more recent years, Schlenker came to realize that others were having the same problem, including those outside the tech industry. That drove him to build Opal, with the goal of helping people better achieve balance in their lives so they could reconnect with loved ones, spend time in nature or just generally go offline to focus on other areas of their lives.

At a basic level, Opal’s VPN allows users to block themselves from using dozens of distracting apps and sites for certain periods of time, including social media, news, productivity apps and more.

Social media, in particular, has been a huge problem in recent years, Schlenker says.

“In particular, Instagram, Facebook and Twitter — social media is where you feel like you’re learning something, and you feel like you’re connecting with people. So it’s good. But on the other hand, it’s very hard to stay intentional,” he explains. “It’s okay to pick up your phone and go to Instagram, but when you ‘wake up’ 30 minutes later, you usually feel really bad. You feel like, ‘where’s the time gone?’, ‘what did I just do?,’ ” he says.

Opal addresses this problem through a handful of features.

Image Credits: Opal

The free service allows you to block distracting websites and apps and take breaks throughout the day. By upgrading to the paid membership, Opal users can schedule time off from apps to establish recurring downtimes — whether that’s for family dinners or working hours, or anything else. They also can use a more extreme version of this feature called Focus Mode, which locks you out of apps in a way that’s not cancelable.

While the company is using a VPN to make this system work, it’s being transparent and straightforward about its data collection practices.

“There is zero private browsing data that leaves your phone,” Schlenker insists. “Anything you do on your phone outside of Opal’s app stays local on your phone and is never stored on any of our servers or any other servers. That’s very important to us,” he says.

From inside Opal’s app, the company claims it only collects usability and crash information — not browsing data. And the usability data is completely anonymized for another layer of privacy. Opal also doesn’t require an email to begin using the app. It only asks for one if you choose to pay.

Image Credits: Opal

 

These core principles are also documented on Opal’s privacy page, and are why Schlenker believes his app won’t face the challenges that other screen-time apps on the App Store have experienced in the past.

As you may recall, Apple cracked down on the screen time app industry a couple of years ago — a move Apple said was focused on protecting user privacy, but has also been raised as a possible example of anticompetitive behavior. Many of the apps at the time had been using techniques Apple claimed put consumers’ privacy and security at risk, as they gave third-parties elevated access to users’ devices. This was particularly concerning because many of the impacted apps were marketed as parental control services — meaning the end users were often children.

Opal, meanwhile, is targeting adults, and perhaps teenagers, who want to develop better screen-time habits. It is not selling this as a parental control system, however.

Image Credits: Opal

At launch, Opal can block over 100 apps and sites across several categories, including Facebook, Instagram, Snapchat, TikTok, Reddit, Pinterest, YouTube, Netflix, Twitch, Gmail, Outlook, Slack, Robinhood, WhatsApp, WeChat and others, including those in the news, adult and gambling categories.

Users can choose to block the apps for short breaks — 5, 10 or 60 minutes — throughout the day. You can also set an intention and set a timer before using an app, to help you avoid the issue of losing track of time. And you can set focus timers or scheduled times to automatically shut off app usage.

You can track your progress by viewing the “time saved” and you can share your successes across social media. In time, Schlenker plans to add more of a scoring mechanism to Opal that will help you stay accountable to your original goals.

Image Credits: Opal

Though work on the app only began in 2020, Opal began attracting attention as it publicized its plans on Twitter and ran its private beta, which grew from hundreds to thousands of users this year, saving its users an average of two hours per day.

Though Schlenker had connections with many of the angel investors who have since backed Opal, he says the interest from institutional and larger investors was all inbound.

“It was not our intention to raise so much, so early,” Schlenker notes.

The funds will be used to help Opal grow its team, particularly engineering, design as well as product. The company will also soon launch a version of Opal for Chrome and later, Android, and will experiment with more social features around sharing and hosting group sessions.

The app is currently a free download on the App Store with an optional $59.99/year subscription plan.

 

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This Week in Apps: TikTok viral hit breaks Spotify records, inauguration boosts news app installs, judge rules against Parler

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry is as hot as ever, with a record 218 billion downloads and $143 billion in global consumer spend in 2020.

Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This week, we’re looking into how President Biden’s inauguration impacted news apps, the latest in the Parler lawsuit, and how TikTok’s app continues to shape culture, among other things.

Top Stories

Judge says Amazon doesn’t have to host Parler on AWS

logos for AWS (Amazon Web Services) and Parler

Logos for AWS (Amazon Web Services) and Parler. Image Credits: TechCrunch

U.S. District Judge Barbara Rothstein in Seattle this week ruled that Amazon won’t be required to restore access to web services to Parler. As you may recall, Parler sued Amazon for booting it from AWS’ infrastructure, effectively forcing it offline. Like Apple and Google before it, Amazon had decided that the calls for violence that were being spread on Parler violated its terms of service. It also said that Parler showed an “unwillingness and inability” to remove dangerous posts that called for the rape, torture and assassination of politicians, tech executives and many others, the AP reported.

Amazon’s decision shouldn’t have been a surprise for Parler. Amazon had reported 98 examples of Parler posts that incited violence over the past several weeks before its decision. It told Parler these were clear violations of the terms of service.

Parler’s lawsuit against Amazon, however, went on to claim breach of contract and even made antitrust allegations.

The judge shot down Parler’s claims that Amazon and Twitter were colluding over the decision to kick the app off AWS. Parler’s claims over breach of contract were denied, too, as the contract had never said Amazon had to give Parler 30 days to fix things. (Not to mention the fact that Parler breached the contract on its side, too.) It also said Parler had fallen short in demonstrating the need for an injunction to restore access to Amazon’s web services.

The ruling only blocks Parler from forcing Amazon to again host it as the lawsuit proceeds, but is not the final ruling in the overall case, which is continuing.

TikTok drives another pop song to No. 1 on Billboard charts, breaks Spotify’s record

@livbedumb♬ drivers license – Olivia Rodrigo

We already knew TikTok was playing a large role in influencing music charts and listening behavior. For example, Billboard last year noted how TikTok drove hits from Sony artists like Doja Cat (“Say So”) and 24kGoldn (“Mood”), and helped Sony discover new talent. Columbia also signed viral TikTok artists like Lil Nas X, Powfu, StaySolidRocky, Jawsh 685, Arizona Zervas and 24kGoldn. Meanwhile, Nielsen has said that no other app had helped break more songs in 2020 than TikTok.

This month, we’ve witnessed yet another example of this phenomenon. Olivia Rodrigo, the 17-year-old star of Disney+’s “High School Musical: The Musical: the Series” released her latest song, “Drivers License” on January 8. The pop ballad and breakup anthem is believed to be referencing the actress’ relationship with co-star Joshua Bassett, which gave the song even more appeal to fans.

Upon its release the song was heavily streamed by TikTok users, which helped make it an overnight sensation of sorts. According to a report by The WSJ, Billboard counted 76.1 million streams and 38,000 downloads in the U.S. during the week of its release. It also made a historic debut at No. 1 on the Hot 100, becoming the first smash hit of 2021.

On January 11, “Drivers License” broke Spotify’s record for most streams per day (for a non-holiday song) with 15.17 million global streams. On TikTok, meanwhile, the number of videos featuring the song and the views they received doubled every day, The WSJ said.

Charli D’Amelio’s dance to it on the app has now generated 5 million “Likes” across nearly 33 million views, as of the time of writing.

@charlidamelio♬ drivers license – Olivia Rodrigo

Of course, other TikTok hits have broken out in the past, too — even reaching No. 1 like “Blinding Lights” (The Weeknd) and “Mood” (24kGoldn). But the success of “Drivers License” may be in part due to the way it focuses on a subject that’s more relevant to TikTok’s young, teenage user base. It talks about first loves and being dumped for the other girl. And its title and opening refer to a time many adults have forgotten: the momentous day when you get your driver’s license. It’s highly relatable to the TikTok crowd who fully embraced it and made it a hit.

Weekly News

Platforms: Apple

  • Apple stops signing iOS 12.5, making iOS 12.5.1 the only versions of iOS available to older devices.
  • A report claims Apple’s iOS 15 update will cut support for devices with an A9 chip, like the iPhone 6, iPhone 6s Plus and the original iPhone SE.
  • New analysis estimates Apple’s upcoming iOS privacy changes will cause a roughly 7% revenue hit for Facebook in Q2. The revenue hit will continue in following quarters and will be “material.”

Platforms: Google

  • Google adds “trending” icons to the Play Store. New arrow icons appeared in the Top Charts tab, which indicate whether an app’s downloads are trending up or down, in terms of popularity. This could provide an early signal about those that may still be rising in the charts or beginning to fall out of favor, despite their current high position.
  • Google appears to be working on a Restricted Networking mode for Android 12. The mode, discovered by XDA Developers digging in the Android Open Source Project, would disable network access for all third-party apps.

Gaming

  • Goama (or Go Games) introduced a way for developers to integrate social games into their apps, which was showcased at CES. The company focuses on Asia and Latin America and has more than 15 partners, including GCash and Rappi, for digital payments and communications.
  • Fortnite maker Epic Games is getting into movies. The animated feature film Gilgamesh will use Epic’s Unreal Engine technology to tell the story of the king-turned-deity. The movie is not an in-house project, but rather is financed through Epic’s $100M MegaGrants fund.

Augmented Reality

  • Patents around Apple’s AR and VR efforts describe how a system could be identified in a way that’s similar to FaceID, then either permitted or denied the ability to change their appearance in the game.
  • Pinterest launches AR try-on for eyeshadow in its mobile app using Lens technology and ModiFace data. The app already offered AR try-on for lipsticks.

Entertainment

  • The CW app became the No. 1 app on the App Store this week, topping TikTok, Instagram and YouTube, thanks to CW’s season premieres of Batwoman, All American, Riverdale and Nancy Drew.
  • Users of podcasting app Anchor, owned by Spotify, say the app isn’t bringing them any sponsorship opportunities, as promised, beyond those from Spotify and Anchor itself.
  • YouTube launches hashtag landing pages on the web and in its mobile app. The pages are accessible when you click hashtags on YouTube, not via search, and weirdly rank the “best” videos through some inscrutable algorithm.
  • Apple’s Podcasts app adds a new editorial feature, Apple Podcasts Spotlight, meant to increase podcast listening by showcasing the best podcasts as selected by Apple editors.

E-commerce

  • WeChat facilitated 1.6 trillion yuan (close to $250 billion) in annual transactions through its “mini programs” in 2020. The figure is more than double that of 2019.

Fintech

  • Douyin, the Chinese version of TikTok, launched an e-wallet, Douyin Pay. The wallet will supplement the existing payment options, Alipay and WeChat Pay, and will help to support the Douyin app’s growing e-commerce business.
  • Neobank Monzo founder Tom Blomfield left the startup, saying he struggled during the pandemic. “I think [for] a lot of people in the world…going through a pandemic, going through lockdown and the isolation involved in that has an impact on people’s mental health,” he told TechCrunch.
  • New estimates indicate about 50% of the iPhone user base (or 507 million users) now use Apple Pay. 
  • Samsung’s newest phones drop support for MST, which emulates a mag stripe at terminals that don’t support NFC.

Social

  • Indian messaging app, StickerChat, owned by Hike, is shutting down. Founder Kavin Bharti Mittal said India will never have a homegrown messenger unless it bars Western companies from its market. Hike pivoted this month to virtual social apps, Vibe and Rush, which it believes have more potential.
  • Instagram head Adam Mosseri, in a Verge podcast, said he’s not happy with Reels so far, and how he feels most people probably don’t understand the difference between Instagram video and IGTV. He says the social network needs to simplify and consolidate ideas.
  • Facebook and Instagram improve their accessibility features. The apps’ AI-generated image captions now offer far more details about who or what is in the photos, thanks to improvements in image recognition systems.
  • TikTok launches a Q&A feature that lets creators respond to fan questions using text or videos. The feature, rolled out to select creators with more than 10,000 followers, makes it easier to see all the questions in one place.

Health & Fitness

  • Health and fitness app spending jumped 70% last year in Europe to record $544 million, a Sensor Tower report says. The year-over-year increase is far larger than 2019, when growth was just 37.2%. COVID-19 played a large role in this shift as people turned to fitness apps instead of gyms to stay in shape.

Government & Policy

  • Biden’s inauguration boosted installs of U.S. news apps up to 170%, Sensor Tower reported. CNN was the biggest mover, climbing 530 positions to reach No. 41 on the App Store, and up 170% in terms of downloads. News Break was the second highest, climbing 13 positions to No. 65. Right-wing outlet Newsmax climbed 43 spots to reach No. 108. In 2020, the top news apps were: News Break (23.7 million installs); SmartNews (9 million); CNN (5 million); and Fox News (4 million). This month, however, News Break saw 1.2 million installs, followed by Newsmax with about 863,000 installs, the report said.
  • Ireland’s Data Protection Commission (DPC) sent a draft decision to fellow EU Data Protection Authorities over the WhatsApp-Facebook data sharing policy. This means a decision on the matter is coming closer to a resolution in terms of what standards of transparency is required by WhatsApp.
  • German app developer Florian Mueller of FOSS Patents filed a complaint with the EU, U.S. DOJ and other antitrust watchdogs around the world over Apple and Google’s rejection of his COVID-related mobile game. Both stores had policies to only approve official COVID-19 apps from health authorities. Mueller renamed the game Viral Days and removed references to the novel coronavirus to get the app approved. However, he still feels the stores’ rules are holding back innovation.

Productivity

  • Basecamp’s Hey, which famously fought back against Apple’s App Store rules over IAP last year, has launched a business-focused platform, Hey for Work, expected to be public in Q1. The app has more App Store ratings than rival Superhuman, a report found. Currently, Hey has a 4.7-star rating across 3.3K reviews; Superhuman has 3.9 rating across only 274 reviews.

Trends

  • Baby boomers are increasingly using apps. Baby boomers/Gen Xers in the U.S. spent 30% more time year-over-year in their most used apps, App Annie reports. That’s a larger increase than either Millennials or Gen Z, at 18% and 16%, respectively.

Funding and M&A

  • Curtsy, a clothing resale app for Gen Z women, raised an $11 million Series A led by Index Ventures. The app tackles some of the problems with online resale by sending shipping supplies and labels to sellers, and by making the marketplace accessible to new and casual sellers.
  • Storytelling platform Wattpad acquired by South Korea’s Naver for $600 million. The reading apps whose stories have turned into book and Netflix hits will be incorporated into Naver’s publishing platform Webtoon.
  • On-demand delivery app Glovo partnered with Swiss-based real estate firm, Stoneweg, which is investing €100 million in building and refurbishing real estate in key markets to build out Glovo’s network of “dark stores.”
  • Pocket Casts app is up for sale. The podcast app was acquired nearly three years ago by a public radio consortium of top podcast producers (NPR, WNYC Studios, WBEZ Chicago and This American Life). The owners have now agreed to sell the app, which posted a net loss in 2020. (NPR’s share of the loss was over $800,000.)
  • Travel app Maps.me raised $50 million in a round led by Alameda Research. The funding will go toward the launch of a multi-currency wallet. Cryptocurrency lender Genesis Capital and institutional cryptocurrency firm CMS Holdings also participated in the round, Coindesk reported.
  • Bangalore-based hyperlocal delivery app Dunzo raised $40 million in a round that included investment from Google, Lightbox, Evolvence, Hana Financial Investment, LGT Lightstone Aspada and Alteria.
  • London-based food delivery app Deliveroo raised $180 million in new funding from existing investors, led by Durable Capital Partners and Fidelity Management, valuing the business at more than $7 billion.
  • Dating Group acquired Swiss startup Once, a dating app that sends one match per day, for $18 million.

Downloads

Bodyguard

Image Credits: Bodyguard

A French content moderation app called Bodyguard, detailed here by TechCrunch, has brought its service to the English-speaking market. The app allows you to choose the level of content moderation you want to see on top social networks, like Twitter, YouTube, Instagram and Twitch. You can choose to hide toxic content across a range of categories, like insults, body shaming, moral harassment, sexual harassment, racism and homophobia and indicate whether the content is a low or high priority to block.

Beeper

Image Credits: Beeper

Pebble’s founder and current YC Partner Eric Migicovsky has launched a new app, Beeper, that aims to centralize in one interface 15 different chat apps, including iMessage. The app relies on an open-source federated, encrypted messaging protocol called Matrix that uses “bridges” to connect to the various networks to move the messages. However, iMessage support is more wonky, as the company actually ships you an old iPhone to make the connection to the network. But this system allows you to access Beeper on non-Apple devices, the company says. The app is slowly onboarding new users due to initial demand. The app works across MacOS, Windows, Linux‍, iOS and Android and charges $10/mo for the service.

 

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VSCO acquires mobile app Trash to expand into AI-powered video editing

VSCO, the popular photo and video editing app, today announced it has acquired AI-powered video editing app Trash, as the company pushes further into the video market. The deal will see Trash’s technology integrated into the VSCO app in the months ahead, with the goal of making it easier for users to creatively edit their videos.

Trash, which was co-founded by Hannah Donovan and Genevieve Patterson, cleverly uses artificial intelligence technology to analyze multiple video clips and identify the most interesting shots. It then stitches your clips together automatically to create a final product. In May, Trash added a feature called Styles that let users pick the type of video they wanted to make — like a recap, a narrative, a music video or something more artsy.

After Trash creates its AI-powered edit, users can opt to further tweak the footage using buttons on the screen that let them change the order of the clips, change filters, adjust the speed or swap the background music.

Image Credits: Trash

With the integration of Trash’s technology, VSCO envisions a way to make video editing even more approachable for newcomers, while still giving advanced users tools to dig in and do more edits, if they choose. As VSCO co-founder and CEO Joel Flory explains, it helps users get from that “point zero of staring at their Camera Roll…to actually putting something together as fast as possible.”

“Trash gets you to the starting point, but then you can dive into it and tweak [your video] to really make it your own,” he says.

The first feature to launch from the acquisition will be support for multi-clip video editing, expected in a few months. Over time, VSCO expects to roll out more of Trash’s technologies to its user base. As users make their video edits, they may also be able to save their collection of tweaks as “recipes,” like VSCO currently supports for photos.

“Trash brings to VSCO a deep level of personalization, machine learning and computer vision capabilities for mobile that we believe can power all aspects of creation on VSCO, both now and for future investments in creativity,” says Flory.

The acquisition is the latest in a series of moves VSCO has made to expand its video capabilities.

At the end of 2019, VSCO picked up video technology startup Rylo. A few months later, it had leveraged the investment to debut Montage, a set of tools that allowed users to tell longer video stories using scenes, where they could also stack and layer videos, photos, colors and shapes to create a collage-like final product. The company also made a change to its app earlier this year to allow users to publish their videos to the main VSCO feed, which had previously only supported photos.

More recently, VSCO has added new video effects, like slowing down, speeding up or reversing clips and new video capture modes.

As with its other video features, the new technology integrations from Trash will be subscriber-only features.

Today, VSCO’s subscription plan costs $19.99 per year, and provides users with access to the app’s video editing capabilities. Currently, more than 2 million of VSCO’s 100 million+ registered users are paid subscribers. And, as a result of the cost-cutting measures and layoffs VSCO announced earlier this year, the company has now turned things around to become EBITDA positive in the second half of 2020. The company says it’s on the path to profitability, and additional video features like those from Trash will help.

Image Credits: Trash

VSCO’s newer focus on video isn’t just about supporting VSCO’s business model, however, it’s also about positioning the company for the future. While the app grew popular during the Instagram era, today’s younger users are more often posting videos to TikTok instead. According to Apple, TikTok was the No. 2 most downloaded free app of the year — ahead of Instagram, Facebook and Snapchat.

Though VSCO doesn’t necessarily envision itself as only a TikTok video prep tool, it does have to consider that growing market. Similar to TikTok, VSCO’s user base consists of a younger, Gen Z demographic; 75% of VSCO’s user base is under 25, for example, and 55% of its subscribers are also under 25. Combined, its user base creates more than 8 million photos and videos per day, VSCO says.

As a result of the acquisition, Trash’s standalone app will shut down on December 18.

Donovan will join VSCO as Director of Product and Patterson as Head of Applied Research. Other Trash team members, including Karina Bernacki, Chihyu Chang and Drew Olbrich, will join as Chief of Staff, Engineering Manager and Sr. Software Engineer for iOS, respectively.

“We both believe in the power of creativity to have a healthy and positive impact on people’s lives,” said Donovan, in Trash’s announcement. “Additionally, we have similar audiences of Gen Z casual creators; and are focused on giving people ways to express themselves and share their version of the world while feeling seen, safe, and supported,” she said.

Trash had raised a total of $3.3 million — a combination of venture capital and $500,000 in grants — from BBG, Betaworks, Precursor and Dream Machine, as well as the National Science Foundation. (Multiple TechCrunch connections here: BBG is backed by our owner Verizon Media, while Dream Machine is the fund created by former TechCrunch editor Alexia Bonatsos.)

“Han and Gen and the Trash team have always paid attention to the needs of creators first and foremost. My hope is that the VSCO and Trash partnership will turn all of us into creators, and turn the gigabytes of latent videos on our phones from trash to treasures,” said Bonatsos, in a statement about the deal.

Flory declined to speak to the deal price, but characterized the acquisition as a “win-win for both the Trash team and for VSCO.”

Updated 12/3/20, 11:27 AM ET: VSCO alerted us that Patterson’s title is being updated to “Head of Applied Research.” We’ve updated the article accordingly.

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The crowd goes wild for Yiming

There’s no shortage of TikTok coverage in the news today as the app’s fate in the U.S. hangs in the air.

What the press doesn’t always address is how TikTok gets here — how did a Chinese startup seize the lucrative short-video market in the West before Google and Facebook? What did it do differently from its Chinese predecessors who tried global expansion to little avail? Matthew Brennan’s new book “Attention Factory” set out to answer these questions by tracing ByteDance’s trajectory from an underdog despised by Chinese tech workers and investors to the envy of Silicon Valley and the target of the White House.

Matthew has spent years working closely with China’s tech firms, not only analyzing them but also using their products as a curious local, experiences that informed his meticulously researched and entertaining book. Interwoven with captivating anecdotes of TikTok, rare photos of ByteDance’s original team, incisive analysis and telling infographics, “Attention Factory” is an essential read for those looking to understand how ideas in the American and Chinese internet worlds collided, coincided and converged throughout the 2010s.

TikTok is a rare example of a Chinese internet service that has gained worldwide success. Before expanding overseas, ByteDance had already proven the short-video model in China through Douyin, the homegrown version of TikTok.

The excerpt below follows a high-growth period of Douyin, detailing how it gained around 200 million daily active users within a year: a loyal creator community, viral memes, algorithmic recommendation and aggressive ad spending.

Before long, the Chinese startup would replicate that growth playbook in the rest of the world, tweaking it here and there to make it work.


Hundreds of fashionably dressed young people were arriving at 751 D.PARK, an expanse of industrial plants redeveloped into a hip culture venue in northeast Beijing. They were clad in baseball caps, brightly colored dresses, loose-fitting hip-hop style streetwear and limited-edition sneakers. The site had been transformed into something akin to the stage of the talent competition “American Idol,” spanning two floors filled with strobe lighting, high-volume music and trendy backdrops. This was an exclusive party — three hundred top Douyin creators coming together to celebrate the app’s one-year anniversary.

The online stars, billed as the “new generation of internet celebrities,” weren’t there to just socialize and enjoy themselves. Every influencer was aware of the unspoken competition to derive the best content from that night. They were all fighting to achieve a higher level of superstardom and the medium of battle was short video.

The influencers who knew each other gathered in small groups as their assistants tirelessly captured fifteen-second videos of their carefully crafted skits. Loners roamed around the dance floor, absorbed in finding the ideal lighting for their lip-syncing selfie videos. Lesser-known influencers nervously approached more famous ones, proposing to record a dance together to potentially tap into their peers’ following. Loud hip-hop music kept playing in the background as creators hurried to touch up the videos they had just shot. Once the editing was done, they uploaded their works and anxiously waited for the app’s algorithms to judge who would grab more eyeballs.

Dance teams took to the stage to display their skills. The crowd bopped their heads back and forth as rappers attempted to impress with clever lyrics. Later as the hosts were midway through giving out awards, a wave of noise erupted from the back of the crowd interrupting the proceedings.

It was Yiming. Dressed in a black baseball cap and gray T-shirt and accompanied by Lidong. The audience went wild — the CEO had decided to drop in unannounced! Immediately he was bombarded with requests to take pictures and videos. As those around him whooped and cried out wildly, the entrepreneur simply smiled and kept his hands calmly by his side, an awkward 34-year-old engineer type among the hyper fashionable, mostly teenage hip-hop crowd.

Yiming and Lidong appear at a Douyin promotional event marking the app’s first anniversary in Sept 2017

Yiming and Lidong appear at a Douyin promotional event marking the app’s first anniversary in Sept 2017.

He already knew from looking at the data, but this was confirmation in the flesh — Douyin had built a robust community, with powerful momentum and was on the verge of doing something special.

The breakout

October 1st marks the beginning of “Golden Week,” a seven-day-long official Chinese national holiday. Periods like these are big opportunities for China’s internet industry. People’s behaviors change for a week; many find more time for entertainment and to try new things.

Over October, Douyin’s daily users doubled from seven to 14 million; two months later, they reached 30 million. Over those three months, the 30-day retention rates jumped from eight to over 20%, the average time spent in the app soared from 20 to 40 minutes. It was as if some magic rocket fuel had suddenly been added, boosting every key metric. What had changed?

The answer was Zhu Wenjia. Zhu Wenjia, hired from Baidu in 2015, was widely considered to be one of the top-three best people in the entire company when it came to algorithm technology. He ran one of ByteDance’s most capable engineering teams and had recently been assigned to work on Douyin. The team’s work harnessing the full power of ByteDance’s content recommendation back end led directly to the astounding October results.

The better the metrics, the more resources ByteDance placed behind the app as it now had good retention and was fast-tracked into becoming a strategically important product. Suddenly support was coming in from all over the company — people, money, user traffic, celebrity endorsements, brand collaborations, and most importantly, full integration and optimization of ByteDance’s powerful recommendation engine. Chinese stars with massive fan bases such as Yang Mi, Lu Han, Kris Wu, and Angelababy opened accounts, joining in publicity campaigns, and a nationwide “Douyin Party” event roadshow was planned. Douyin had become the hottest upcoming app in China.

ByteDance ramped up the investment in all three short-video products, including Douyin. People, resources and advertising budget were all raised, leading an industry insider to comment later: “The sudden rise of Douyin wasn’t without good cause. Yiming threw more money at this than anyone and dared to hunt down and grab the best people.”

Commercialization began with the first three brand ad campaigns paid for by Airbnb, Harbin Beer and Chevrolet. Douyin’s advertising business would soon make rapid progress. ByteDance already had hundreds of sales and marketing staff who would shortly be able to add Douyin’s advertisement inventory to their sales targets.

Yiming revealed in a later interview that the company had made it compulsory for everyone on the management team to make their own Douyin videos with goals to gain a certain number of likes or suffer forfeits such as doing push-ups. It wasn’t good enough to just look at charts and data; management needed to understand short videos from a creator’s perspective also. Yiming had watched Douyin videos for a long time but creating his own was “a big step for me,” he admitted.

Yiming’s personal Douyin account (3277469). Seventeen videos at the time of writing, including clips from his global travels

Yiming’s personal Douyin account (3277469). Seventeen videos at the time of writing, including clips from his global travels.

‘Oh well … karma’s a bitch’

The video opened to a young woman yawning, dressed in pajamas with messy morning hair. Wearing glasses and with no signs of makeup, she casually lip-syncs the line, “Oh well … karma’s a bitch” and throws a silk scarf into the air. Suddenly loud background music explosively begins. In an instant, she transforms into a glamorous fashion model, almost unrecognizable from a second before. A new meme had taken hold of Douyin.

“Karma’s a bitch” was a new version of the original “Don’t judge me” challenge that had propelled Musical.ly to top the U.S. app store three years earlier. The meme was another breakthrough for Douyin; People loved watching the shocking transformations. Compilations of the meme’s videos started popping up online. In particular, the makeup skills of some women left many men in disbelief. “Karma’s a bitch” left an impact on mainstream culture and gained widespread recognition and publicity, even making waves out into English language global media.

Douyin was also increasingly hypercharging the popularity of catchy pop songs with strong hooks. In late 2017, a track known as the “Ci-li-ci-li song” exploded on Douyin. The song’s catchy energy was undeniably infectious. Yet, it was the novel set of dance moves that had become associated with the track’s hook that turned the music into a meme and dramatically amplified its success.

The track had actually been released back in 2013 by Romanian reggae and dancehall artist Matteo, under the name “Panama.” Four years after its debut, the song’s unexpected and explosive spike in popularity led the singer to hastily organize an Asia tour to capitalize on his track’s sudden fame. A YouTube video shows him meeting Chinese fans at the Hangzhou airport who demonstrate their moves to him in the arrivals hall. With the dance having been created entirely in China, the bewildered artist finds himself in the awkward situation of not knowing how to follow the moves to the song for which he is famous.

Perhaps the most reliable indicator of the platform’s increasing influence on society was how the name, Douyin, had started to enter everyday colloquial vernacular, becoming synonymous with short video. The meaning of “Let’s shoot a Douyin!” needed no explanation.

Make it rain

ByteDance knew they now had a winning formula. Retention was good, word of mouth was excellent, a large, vibrant community of video creators had been fostered. The recommendation engine was doing its job of surfacing the best content. Douyin’s fire was already burning bright; now, it was time to pour gasoline on things and spend, spend, spend.

The holiday week of Chinese New Year is another unique annual opportunity for app promotions. Hundreds of millions travel home to be reunited with their families and find themselves with free time to relax. An entertainment app like Douyin was the perfect way to pass the time; word of mouth spread naturally between family members.

To step up its efforts further, Douyin directly gave out money to users by running a Chinese New Year “lucky money” campaign. Users could collect small cash amounts in special videos by tapping on the “red packet” icons — a digital manifestation of cash-filled envelopes people give to each other during the holiday. ByteDance also went all out, spending wildly, buying adverts and promotions across major online channels to acquire users, spending about 4 million yuan a day (over half a million dollars). The combination of all these effects sent Douyin to the top of the Chinese app store charts. Various reports stated Douyin’s daily users jumped from around 40 to 70 million over the February to March period covering Chinese New Year, with some of the top accounts seeing their follower numbers quadruple.

A chart mapping the progress of Douyin, from zero to 200 million daily active users, during the first two years of operation.

A chart mapping the progress of Douyin, from zero to 200 million daily active users, during the first two years of operation.

 


This article is an excerpt from “Attention Factory: The Story of TikTok and China’s ByteDance,” which was written by Matthew Brennan and edited by TechCrunch reporter Rita Liao, who wrote the introduction to this post.

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Netflix’s latest experiment is a TikTok-like feed of funny videos

Netflix already borrowed the concept of short-form video “Stories” from social apps like Snapchat and Instagram for its Previews feature back in 2018. Now, the company is looking to the full-screen vertical video feed, popularized by TikTok, for further inspiration. With its latest experiment, Fast Laughs, Netflix is offering a new feed of short-form comedy clips drawn from its full catalog.

The feed includes clips from both originals and licensed programming, Netflix says. It also includes video clips from the existing Netflix social channel, “Netflix Is A Joke,” which today runs clips, longer videos and other social content across YouTube, Twitter, Facebook and Instagram.

Fast Laughs resembles TikTok in the sense that it’s swiped through vertically, offers full-screen videos and places its engagement buttons on the right side. But it’s not trying to become a place to waste time while being entertained.

Like many of Netflix’s experiments, the goal with the Fast Laughs feed is to help users discover something new to watch.

Instead of liking and commenting on videos, as you would in a social video app, the feed is designed to encourage users to add shows to their Netflix watch list for later viewing. In this sense, it’s serving a similar purpose to Netflix’s “Previews” feature, which helps users discover shows by watching clips and trailers from popular and newly released programming.

As users scroll through the new Fast Laughs feed, they’ll encounter a wide range of comedy clips — like a clip from a Kevin Hart stand-up special or a funny bit from “The Office,” for example. The clips will also range in length anywhere from 15 to 45 seconds.

In addition to adding clips to Netflix’s “My List” feature, users can also react to clips with a laughing emoji button, share the clip with friends across social media, or tap a “More” button to see other titles related to the clip you’re viewing.

The feature was first spotted by social media consultant Matt Navarra, based in the U.K. In his app, Fast Laughs appeared in front of the row of Previews, where it was introduced with text that said “New!”

Netflix confirmed to TechCrunch the experiment had been tested with a small number of users earlier this year, but has recently started rolling out to a wider group this month — including users in the U.K., the U.S. and other select markets.

It’s currently available to a subset of Netflix users with adult profiles or other profiles without parental controls on iOS devices only. However, users don’t need to be opted in to experiments nor do they need to be on a beta version of the Netflix app to see the feature. It’s more of a standard A/B test, Netflix says.

And because it’s a test, users may see slightly different versions of the same feature. The product may also evolve over time, in response to user feedback.

Netflix is hardly the first to “borrow” the TikTok format for its own app. Social media platforms, like Instagram and Snapchat, have also launched their own TikTok rivals in recent months.

But Netflix isn’t a direct competitor with TikTok — except to the extent that any mobile app competes for users’ time and attention, as there are only so many hours in a day.

Instead, the new feed is more of an acknowledgment that the TikTok format of a full-screen vertical video feed with quick engagement buttons on the side is becoming a default style of sorts for presenting entertaining content.

“We’re always looking for new ways to improve the Netflix experience,” a Netflix spokesperson said, confirming the experiment. “A lot of our members love comedy so we thought this would be an exciting new way to help them discover new shows and enjoy classic scenes. We experiment with these types of tests in different countries and for different periods of time — and only make them broadly available if people find them useful,” they added.

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