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Netflix tests an Instagram Stories-like feed called ‘Extras’ in its app
Netflix is testing a new way to help users find something to watch and stay connected with favorite shows with the introduction of an “Extras” tab in its mobile app. The tab, spotted first by Variety, is only a test at this time and is not showing to all users.
If you are in the test group, you’ll see a new button dubbed “Extras” at the bottom of the screen, between Search and Downloads.
On Android, this is currently the “Coming Soon” section; iOS doesn’t offer this section.
However, instead of only teaser trailers as before in “Coming Soon,” you’ll now find both photos and videos from Netflix shows — including, in some cases, shows you already watch, the report notes.
The videos automatically play silently unless you tap the sound button, it appears. You also move through the feed horizontally. That’s a noticeable change from the “Coming Soon” section’s News Feed-like vertical scroll, and one that feels more like Instagram Stories.
And while you could previously tap “Remind Me” to add shows to your list in the “Coming Soon” section, the “Extras” section has tweaked this to display “Remind Me” on shows you currently watch and “My List” on those you want to add.
A sizable sharing button is also included, allowing you to pass along recommendations to friends through other apps.
Netflix has taken ideas from popular social platforms before, as it did when it launched its own Stories-like feature for previews. It has also leveraged social platforms for sharing recommendations — like when it added Instagram Story integrations. This feature combines both elements, in a way, so could prove popular.
The test is running on both iOS and Android, we understand.
The company confirmed the test with us in a statement:
We are testing a feed of video extras in our mobile app to help fans connect more deeply with the titles they love and discover new ones to watch. These tests typically vary in length of time and by region, and may not become permanent.
Image credit: Janko Roettgers / Variety
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Which type of funding is actually best for your business?
Jared Hecht is the co-founder and CEO of Fundera, an online marketplace for small business financial solutions including small business loans. Prior to Fundera, Hecht co-founded group messaging app, GroupMe.
When starting a tech company, there seems to be a playbook that most entrepreneurs follow. While some may start with a bit of bootstrapping, most will dive straight into raising seed money through investors. In many cases, this is a great path. It’s a path I’ve taken twice myself, first with GroupMe, and then again with Fundera.
Ironically, though, my second venture-backed company is a business focused on helping entrepreneurs find debt financing—a process I’ve gone through only once myself. But after five years of building and scaling this business, it’s made me take a step back and consider the question of when and where debt financing might be a better option for a business than equity financing, and vice versa.
I view these financing vehicles differently now than I did half a decade ago, and think it’s time we start to think a bit wider and diversely about how we finance our growing endeavors.
After all, when entrepreneurs take venture capital, they usually sign up to provide a 10x return on an investor’s capital. This expectation ultimately influences how they operate their business in the short-term. Maybe they’re not always ready for that expectation.
Or maybe they know they need to focus on building a good business before a great one. In this case, debt may be the better vehicle, where the only expectation is to pay it back.
Whether it’s money to get your business off the ground, capital to fuel additional growth, or cash to cover a gap, and whether you’re guiding the growth of a burgeoning startup, a smaller business, or even consulting firm helping other entrepreneurs, you should think critically about how you finance your business.
Here’s what to consider.
The power of debt
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With iOS 13, Apple delivers new features to court users in India
Apple has finally listened to its small, but slowly growing user base in India. The iPhone-maker today announced a range of features in iOS 13 that are designed to appease users in the world’s second largest smartphone market.
First up, the company says its Siri voice assistant now offers all new and “more natural” Indian English male and female voices. It has also introduced a bilingual keyboard, featuring support for Hindi and English languages. The keyboard offers typing predictions in Devanagari Hindi that can suggest the next word as a user types and it learns from their typing over time.
Additionally, the keyboard in iOS 13 supports all of 22 Indian languages, with the inclusion of 15 new Indian language keyboards: Assamese, Bodo, Dogri, Kashmiri (Devanagari, Arabic), Konkani (Devanagari), Manipuri (Bangla, Meetei Mayek), Maithili, Nepali, Sanskrit, Santali (Devanagari, Ol Chiki), and Sindhi (Devanagari, Arabic).
The addition of these features comes as Apple cautiously grows more serious about India, where it holds about just 1% of the smartphone market share, according to research firm Counterpoint. Even as smartphone shipment is declining in much of the world, India has emerged as the fastest growing market for handsets in recent years. According to Counterpoint, more than 145 million smartphones shipped in India last year, up 10% year-over-year.
But users in India have long complained about Apple services not being fully optimized for local conditions. Siri, for instance, has so far offered limited functionalities in India, and many Apple services such as Apple Pay and Apple News are yet to launch in the nation.
The upcoming version of iOS, which will ship to a range of iPhone handsets later this year, also includes four new system fonts in Indian languages: Gurmukhi, Kannada, Odia, and Gujarati. These will “help deliver greater clarity and ease when reading in apps like Safari, typing in Messages and Mail, or swiping through Contacts,” the company said in a statement.
Additionally, there are 30 new document fonts for Indian languages Hindi, Marathi, Nepali, Sanskrit, Bengali, Assamese, Tamil, Telugu, Gujarati, Kannada, Gurmukhi, Malayalam, Odia, and Urdu.
Apple says iOS 13 will also enable improved video downloading option for patchy networks. It says users in India can now set an optimized time of the day in video streaming apps such as Hotstar and Netflix for downloading videos. Consumption of video apps is increasingly skyrocketing in India. Just last week, Alibaba said it was investing $100 million in its short video app called Vmate in the nation.
In recent months, Apple has also improved Apple Maps in India. Earlier this year, Apple Maps added support for turn-by-turn navigation, and enabled users to book a cab — from Ola or Uber — directly from within the maps app. The company has also been aggressively hiring people to expand its maps and other software teams in the country, according to job postings on the its site.
Improvements to software aside, Apple has also been working to reduce the cost of iPhones in India, the single major factor for their poor sales in the country. Two years ago, Apple started to assemble the iPhone 7 handset in India. It plans to ramp up its local production in the coming weeks, a person familiar with the matter told TechCrunch.
As part of local government’s ‘Make in India’ program, phone vendors that assemble phones in the country are offered tax and other benefits. Ravi Shankar Prasad, an Indian minister who oversees law and justice, telecom, and electronics and IT departments, said at a press conference earlier today (local time) that Bharatiya Janata Party, the ruling party which was reelected last month, will work on expanding Make in India program as one of its top priorities.
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‘Weirdo’ Fintech VC Anthemis marches to its own drummer
Entering into the world of Anthemis is a bit like stepping into the frame of a Wes Anderson film. Eclectic, offbeat people situated in colorful interiors? Check. A muse in the form of a renowned British-Venezuelan economist? Check. A design-forward media platform to provoke deep thought? Check. An annual summer retreat ensconced in the French Alps? Bien sûr.
Sitting atop this most unusual fintech(ish) VC is its ponytailed founder and chairman Sean Park, whose difficult-to-place accent and Philosophy professor aura belie his extensive fixed income capital markets experience. He’s joined by founder and CEO Amy Nauiokas, who in addition to being one of Fintech’s most prominent female investors also owns a high-minded film and television production company.
When Arman Tabatabai and I recently sat down with Park and Nauiokas in their New York office, the firm’s leaders were in an upbeat mood, having blown past the temporary perception-setback associated with the abrupt resignation last year of Anthemis’ former CEO Nadeem Shaikh (for more on this, read TechCrunch writer Steve O’Hear’s coverage of the situation).
And as the conversation below demonstrates, Park and Nauiokas are well poised to bring the quirk into everything they touch, which these days runs the gamut from backing companies involved in sustainable finance, advancing their home-grown media platform and preparing a soon-to-be-announced initiative elevating female entrepreneurs.
Gregg Schoenberg: With the two of you now at the helm, how does Anthemis present itself today?
Sean Park: I’ll step back and say that when Amy and I were working at big financial institutions in the noughties, we saw that the industry was going to change and that existing business models were running into their natural diminishing returns.
We tried to bring some new ideas to the organizations we were working in, but we each had epiphany moments when we realized that big organizations weren’t built to do disruptive transformation — for bad reasons, but also good reasons, too.
GS: Let’s fast forward to today, where you have several strong Fintech VCs out there. But unlike others, Anthemis puts weirdness at the heart of its model.
Yes, you’ve backed some big names like Betterment and eToro, but you’ve done other things that are farther afield. What’s the underlying thesis that supports that?
Amy Nauiokas: Whatever we do at Anthemis has to be a non-zero-sum game. It has to be for good, not for evil. So that means that we aren’t looking in any place where you see predatory opportunities to make money.
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Hotstar, Disney’s Indian streaming service, sets new global record for live viewership
Indian video streaming giant Hotstar, owned by Disney, today set a new global benchmark for the number of people an OTT service can draw to a live event.
Some 18.6 million users simultaneously tuned into Hotstar’s website and app to watch the deciding game of the 12th edition of the Indian Premier League (IPL) cricket tournament. The streaming giant, which competes with Netflix and Amazon in India, broke its own “global best” 10.3 million concurrent views milestone that it had set last year.
Hotstar topped the 10 million concurrent viewership mark a number of times during this year’s 51-day IPL season. More than 12.7 million viewers huddled to watch an earlier game in the tournament (between Royal Challengers Bangalore and Mumbai Indians), a spokesperson for the four-year-old service said. In mid-April, Hotstar said that the cricket series had already garnered a 267 million overall viewership, creating a new record for the streamer. (Last year’s IPL had clocked a 202 million overall viewership.)
Fans of Mumbai Indians celebrate their team’s victory against Chennai Super Kings in IPL cricket tournament in India.
These figures coming out of India, the fastest-growing internet market, are astounding to say the least. In comparison, a 2012 live stream of skydiver Felix Baumgartner jumping from near-space to the Earth’s surface, remains the most concurrently viewed video on YouTube. It amassed about 8 million concurrent viewers. The live viewership of the royal wedding between Prince Harry and Meghan Markle was also a blip in comparison.
As Netflix and Amazon scramble to find the right content strategy to lure Indians, Hotstar and its local parent firm Star India have aggressively focused on securing broadcast and streaming rights to various cricket series. Cricket is almost followed like a religion in India.
In 2017, Star India, then owned by 21st Century Fox, secured the rights to broadcast and stream the IPL cricket tournament for five years for a sum of roughly $2.5 billion. Facebook had also participated in the bidding, offering north of $600 million for streaming. (Star India was part of 21st Century Fox’s business that Disney acquired for $71.3 billion earlier this year.)
That bet has largely paid off. Hotstar said last month that its service has amassed 300 million monthly active users, up from 150 million it had reported last year. In comparison, both Netflix and Amazon Prime Video have less than 30 million subscribers in India, according to industry estimates.
In the last two years, Hotstar has expanded to three international markets — the U.S., Canada, and most recently, the UK — to chase new audiences. The streaming service is hoping to attract Indians living overseas and anyone else who is interested in Bollywood movies and cricket, Ipsita Dasgupta, president of Hotstar’s international operations, told TechCrunch in an interview.
The streaming service plans to enter Sri Lanka, Pakistan, Nepal, Middle East, Australia, and New Zealand in the next few quarters, Dasgupta said.
That’s not to say that Hotstar has a clear path ahead. According to several estimates, the streaming service typically sees a sharp decline in its user base after the conclusion of an IPL season. Despite the massive engagement it generates, it remains operationally unprofitable, people familiar with Hotstar’s finances said.
The ad-supported streaming service offers about 80 percent of its content catalog — which includes titles produced by Star India, and shows and movies syndicated from international partners HBO, ABC, and Showtime among others — for no cost to users. One of the most watched international shows on the platform, “Game of Thrones,” will be ending soon, too.
The upcoming World Cup cricket tournament, which Hotstar will stream in India, should help it avoid the major headache for sometime. In the meantime, the service is aggressively expanding its slate of original shows in the nation. One of the shows is a remake of BBC/NBC’s popular “The Office.”
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Where top VCs are investing in media, entertainment & gaming
Most of the strategy discussions and news coverage in the media and entertainment industry is concerned with the unfolding corporate mega-mergers and the political implications of social media platforms.
These are important conversations, but they’re largely a story of twentieth-century media (and broader society) finally responding to the dominance Web 2.0 companies have achieved.
To entrepreneurs and VCs, the more pressing focus is on what the next generation of companies to transform entertainment will look like. Like other sectors, the underlying force is advances in artificial intelligence and computing power.
In this context, that results in a merging of gaming and linear storytelling into new interactive media. To highlight the opportunities here, I asked nine top VCs to share where they are putting their money.
Here are the media investment theses of: Cyan Banister (Founders Fund), Alex Taussig (Lightspeed), Matt Hartman (betaworks), Stephanie Zhan (Sequoia), Jordan Fudge (Sinai), Christian Dorffer (Sweet Capital), Charles Hudson (Precursor), MG Siegler (GV), and Eric Hippeau (Lerer Hippeau).
Cyan Banister, Partner at Founders Fund
“In 2018 I was obsessed with the idea of how you can bring AI and entertainment together. Having made early investments in Brud, A.I. Foundation, Artie and Fable, it became clear that the missing piece behind most AR experiences was a lack of memory.
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China’s new gaming rules to ban poker, blood and imperial schemes
Lots of news has surfaced from China’s gaming industry in recent weeks as the government hastens to approve a massive backlog of titles in the world’s largest market for video games.
Last Friday, On April 10th, the country’s State Administration of Press and Publication, the freshly minted gaming authority born from a months-long reshuffle last year that led to an approval blackout, held a gaming conference and enshrined a new set of guidelines for publication that are set to move some to joy and others to sorrow. TechCrunch confirmed with an attendee present at the conference and a source close to the SAPP that the event took place.
On April 22, China finally resumed the approval process to license new games for monetization. Licensing got back on track in December, but Reuters reported in February that the government stopped accepting new submissions due to a mounting pile of applications.
The bad news: The number of games allowed onto the market annually will be capped, and some genres of games will no longer be eligible. Mahjong and poker games are taken off the approval list following a wave of earlier government crackdowns over concerns that such titles may channel illegal gambling. These digital forms of traditional leisure activities are immensely popular for studios because they are relatively cheap to make and bear lucrative fruit. According to video game researcher Niko Partners, 37 percent of the 8,561 games approved in 2017 were poker and mahjong titles.
While the new rule is set to wipe out hundreds of small developers focused on the genre, it may only have a limited impact on the entrenched players as the restriction applies only to new applicants.
“It won’t affect us much because we are early to the market and have accumulated a big collection of licenses,” a marketing manager at one of China’s biggest online poker and mahjong games publishers told TechCrunch.
China will also stop approving certain games inspired by its imperial past, including “gongdou,” which directly translates to harem scheming, as well as “guandou,” the word for palace official competition. The life inside palaces has inspired blockbuster TV series such as the Story of Yanxi Palace, an in-house production from China’s Netflix equivalent iQiyi . But these plots also touch a nerve with Chinese officials who worry about “obscene contents and the risk of political metaphors,” Daniel Ahmad, senior analyst at Nikos Partners, suggested to TechCrunch.
Screenshots of Xi Fei Zhuan, a mobile game that lets users play the role of harems to win love from the emperor. Image source: Superjoy Interactive Games
Games that contain images of corpses and blood will also be rejected. Developers previously modified blood color to green to circumvent restrictions, but the renewed guidelines have effectively ruled out any color variations of blood.
“Chinese games developers are used to arbitrary regulations. They are quick at devising methods to circumvent requirements,” a Guangzhou-based indie games developer told TechCrunch.
That may only work out for companies armed with sufficient developing capabilities and resources to counter new policies. For instance, Tencent was quick to implement an anti-addiction system for underage users before the practice became an industry-wide norm as of late.
“Many smaller publishers will have a harder time under this new set of regulations, which will require them to spend extra time and money to ensure games are up to code,” suggested Ahmad. “We’ve already seen that many smaller publishers were unable to survive the temporary game license approval freeze last year and we expect to see further consolidation of the market this year.”
China has over the past year taken aim at the gaming industry over concerns related to gaming addiction among minors and illegal content, such as those that promote violence or deviate from the government’s ideologies. To enforce the growing list of requirements, an Online Game Ethics Committee launched in December under the guidance of the Publicity Department of the Chinese Communist Party to help the new gaming regulator in vetting title submissions.
More than 1,000 games have been approved since China ended the gaming freeze in December, though Tencent, the dominant player in the market, has yet to receive the coveted license required for monetizing its hugely popular mobile title PlayerUnknown’s Battlegrounds.
Uncertain waters in the gaming industry have wiped billions of dollars off the giant’s market cap and prompted it to initiate a bigger push in such non-game segments as cloud computing and financial technologies. NetEase, the runner-up in China’s gaming market, reacted by trimming its staff to cut costs.
The article was updated to correct the date for the gaming conference and clarify that the new guidelines were announced at the conference.
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The right way to do AI in security
Artificial intelligence applied to information security can engender images of a benevolent Skynet, sagely analyzing more data than imaginable and making decisions at lightspeed, saving organizations from devastating attacks. In such a world, humans are barely needed to run security programs, their jobs largely automated out of existence, relegating them to a role as the button-pusher on particularly critical changes proposed by the otherwise omnipotent AI.
Such a vision is still in the realm of science fiction. AI in information security is more like an eager, callow puppy attempting to learn new tricks – minus the disappointment written on their faces when they consistently fail. No one’s job is in danger of being replaced by security AI; if anything, a larger staff is required to ensure security AI stays firmly leashed.
Arguably, AI’s highest use case currently is to add futuristic sheen to traditional security tools, rebranding timeworn approaches as trailblazing sorcery that will revolutionize enterprise cybersecurity as we know it. The current hype cycle for AI appears to be the roaring, ferocious crest at the end of a decade that began with bubbly excitement around the promise of “big data” in information security.
But what lies beneath the marketing gloss and quixotic lust for an AI revolution in security? How did AL ascend to supplant the lustrous zest around machine learning (“ML”) that dominated headlines in recent years? Where is there true potential to enrich information security strategy for the better – and where is it simply an entrancing distraction from more useful goals? And, naturally, how will attackers plot to circumvent security AI to continue their nefarious schemes?
How did AI grow out of this stony rubbish?
The year AI debuted as the “It Girl” in information security was 2017. The year prior, MIT completed their study showing “human-in-the-loop” AI out-performed AI and humans individually in attack detection. Likewise, DARPA conducted the Cyber Grand Challenge, a battle testing AI systems’ offensive and defensive capabilities. Until this point, security AI was imprisoned in the contrived halls of academia and government. Yet, the history of two vendors exhibits how enthusiasm surrounding security AI was driven more by growth marketing than user needs.
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Snapchat will power Stories & ads in other apps
Snapchat has found an answer to the revenue problem stemming from its halted growth: it will show its ads in other apps with the launch of Snapchat Ad Kit and the Snapchat Audience Network. And rather than watching as other apps spin up their own knock-off versions of its camera and Stories, it will let apps like Tinder and Houseparty host Stories inside their own products that users can share to from the Snapchat camera with Stories Kit. They’ll both be launching later this year, and developers interested in monetization and engagement help can apply for access.
Snapchat debuted the big new additions to its Snap Kit at its first-ever press event in Los Angeles, the Snap Partner Summit, where it also announced a new augmented reality utility platform called Scan, and its new multiplayer games platform. More than 200 apps have already integrated the privacy-safe Snap Kit that lets users log in to other apps with Snapchat, bring their Bitmoji, view Our Stories content and share stickers back to Snapchat.
But later this year, developers will be able to earn money off of Snap Kit with Ad Kit. Developers will integrate Snapchat’s SDK, and then Snap’s advertisers will be able to extend their ad buys to reach both Snapchat users and non-users in other apps. Snapchat will split the ad revenue with developers, but refused to hint at what the divide will be, as it’s still gauging developer interest. The move is straight out of Facebook’s playbook, essentially copying the functionality and name of Facebook’s Audience Network.
There are still big questions about exactly how Snapchat will reach and track ad views of non-users, and how it will be able to provide brands with the analytics they need while maintaining user privacy. But simply by making Snapchat’s somewhat proprietary vertical video ad units reusable elsewhere, it could prove it has a scale to be worth advertisers’ time. The lack of scale has often scared buyers away from Snapchat. But Snap CEO Evan Spiegel says that “In the United States, Snapchat now reaches nearly 75 percent of all 13 to 34-year-olds, and we reach 90 percent of 13 to 24-year-olds. In fact, we reach more 13 to 24-year-olds than Facebook or Instagram in the United States, the U.K., France, Canada and Australia.”
To keep those users engaged even outside of Snapchat, it’s adding App Stories through Story Kit. Snapchat users will see an option to share to integrated apps after they create a photo or video. Those Stories will then appear in custom places in other apps. You’ll see Snaps injected alongside people’s photos when you’re browsing potential matches in Tinder. You can see what friends on group chat social network Houseparty are doing when they are not on the app. And you can see video recommendations from explorers on AdventureAide.
For now, Snapchat won’t run ads between Stories in other apps, but that’s always a possibility. We’ll have to see how long it takes Instagram and Facebook to try to copy Stories Kit and distribute their own versions to other apps.
Snap also has some other fun new integrations and big-name partnerships. Bitmoji Kit will bring your personalized avatar off your phone and onto Fitbit’s smart watches and Venmo transactions. Netflix will let you share preview images (but not trailers) from its shows to your Snapchat Story. A new publisher-sharing button for the web will let you share articles from The Washington Post and others to your Story.
By colonizing other apps with its experience, Snapchat decreases the need for them to copy it. Instead they get the original, and a lot less development work. And the platform makes your Snapchat account more valuable around the web. These integrations might not grow Snapchat too much, but it could help it keep its existing users happy and squeeze more cash out of them.
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Microsoft gives 500 patents to startups
Microsoft today announced a major expansion of its Azure IP Advantage program, which provides its Azure users with protection against patent trolls. This program now also provides customers who are building IoT solutions that connect to Azure with access to 10,000 patents to defend themselves against intellectual property lawsuits.
What’s maybe most interesting here, though, is that Microsoft is also donating 500 patents to startups in the LOT Network. This organization, which counts companies like Amazon, Facebook, Google, Microsoft, Netflix, SAP, Epic Games, Ford, GM, Lyft and Uber among its close to 400 members, is designed to protect companies against patent trolls by giving them access to a wide library of patents from its member companies and other sources.
“The LOT Network is really committed to helping address the proliferation of intellectual property lawsuits, especially ones that are brought by non-practicing entities, or so-called trolls,” Microsoft CVP and Deputy General Counsel Erich Andersen told me.
This new program goes well beyond basic protection from patent trolls, though. Qualified startups who join the LOT Network can acquire Microsoft patents as part of their free membership and as Andersen stressed, the startups will own them outright. The LOT network will be able to provide its startup members with up to three patents from this collection.
There’s one additional requirement here, though: To qualify for getting the patents, these startups also have to meet a $1,000 per month Azure spend. As Andersen told me, though, they don’t have to make any kind of forward pledge. The company will simply look at a startup’s last three monthly Azure bills.
“We want to help the LOT Network grow its network of startups,” Andersen said. “To provide an incentive, we are going to provide these patents to them.” He noted that startups are obviously interested in getting access to patents as a foundation of their companies, but also to raise capital and to defend themselves against trolls.
The patents we’re talking about here cover a wide range of technologies as well as geographies. Andersen noted that we’re talking about U.S. patents as well as European and Chinese patents, for example.
“The idea is that these startups come from a diverse set of industry sectors,” he said. “The hope we have is that when they approach LOT, they’ll find patents among those 500 that are going to be interesting to basically almost any company that might want a foundational set of patents for their business.”
As for the extended Azure IP Advantage program, it’s worth noting that every Azure customer who spends more than $1,000 per month over the past three months and hasn’t filed a patent infringement lawsuit against another Azure customer in the last two years can automatically pick one of the patents in the program’s portfolio to protect itself against frivolous patent lawsuits from trolls (and that’s a different library of patents from the one Microsoft is donating to the LOT Network as part of the startup program).
As Andersen noted, the team looked at how it could enhance the IP program by focusing on a number of specific areas. Microsoft is obviously investing a lot into IoT, so extending the program to this area makes sense. “What we’re basically saying is that if the customer is using IoT technology — regardless of whether it’s Microsoft technology or not — and it’s connected to Azure, then we’re going to provide this patent pick right to help customers defend themselves against patent suits,” Andersen said.
In addition, for those who do choose to use Microsoft IoT technology across the board, Microsoft will provide indemnification, too.
Patent trolls have lately started acquiring IoT patents, so chances are they are getting ready to make use of them and that we’ll see quite a bit of patent litigation in this space in the future. “The early signs we’re seeing indicate that this is something that customers are going to care about in the future,” said Andersen.
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