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Flipboard brings its ad-supported ‘Flipboard TV’ video service to all users

News app Flipboard is further expanding into video with Flipboard TV. The company’s curated video service first launched earlier this year as a Samsung exclusive, and is now making its way to all Flipboard users in the U.S. With today’s launch, the service will offer users access to video from hundreds of publishers, including global publishers, local news publishers and, now, select independent video producers, too.

Samsung Galaxy device owners will continue to have exclusive access to upgrade to the premium, ad-free version of Flipboard TV. For everyone else, the service will be ad-supported.

As of today’s expansion, Flipboard has also lined up a number of media partners that will provide their video feeds to Flipboard’s app. This list includes Complex Networks, Minute Media, A360 Media, Group Nine Media, The Recount, Bonnier Corp, Refinery29, Dow Jones, Hearst Magazines, Gannett, Vice Media Group and Penske Media Corporation, with brands such as Rolling Stone and Variety. Video from Euronews, Tribune Publishing and dozens of others will also be available through a new partnership with VideoElephant, the company says.

Image Credits: Flipboard

In addition, Flipboard is bringing independent publishers on board for the first time, like filmmaker Gene Nagata (aka Potato Jet) and video journalist Johnny Harris. These have been onboarded through Flipboard’s partnership with the influencer agency Spacestation Integrations. Other independents include Gary Vaynerchuk, AudPop’s filmmakers and Underknown, producer of video series such as “What If” and “How To Survive.”

Despite its expansion beyond traditional news publications, Flipboard says it’s making careful choices when it comes to its video lineup, in terms of quality.

“It’s not a free-for-all,” says Flipboard VP of Global Growth and Biz Dev, Claus Enevoldsen. “We have been very conscious about the whole ecosystem and making sure that what shows up for you in ‘For You’ is stuff that we know is not fake news. It’s trusted sources. That’s always been our MO, and we extend that to the video space, as well,” he explains.

Image Credits: Flipboard

The new video feeds will be available within a dedicated Video Tab in Flipboard’s Content Guide. The company says users will be able to more easily find videos to watch within the app due to improved discovery features and deeper integrations. In addition to its Content Guide, 20 top-level topics will now offer video-only feeds alongside articles, including travel, politics, local, lifestyle, sports, news and more. The videos will also be more prominent in users’ “For You” feeds, which is a mix of editorial and algorithmic curation.

Users will be able to add video-only feeds to their own magazines, too, if they prefer.

These videos, for the first time, will play natively within Flipboard. This helps to power Flipboard’s recommendation engine that directs you to related videos, the company says. This change also means users will be able to use additional video controls, like those that let them skip to the next video, for example.

Image Credits: Flipboard

The new video effort additionally ties into Flipboard’s recent expansions into local news that began at the start of 2020. As of this June, Flipboard’s local news coverage reached 50 cities across the U.S. and Canada. Today that number is 61. Now, Flipboard users will be able to follow their favorite local news outlets’ video content, as well, directly in Flipboard.

This presents what’s often a much cleaner experience than visiting the news publishers’ own app or website. Flipboard, meanwhile, offers an undisclosed revenue-share with its news partners, derived from the advertising that runs in their videos.

These ads play both as pre-rolls and mid-rolls, Flipboard says. This is the first time it’s run pre-roll ads on its platform — something that the company believes will help to address demand from publishers for high-quality, brand-safe digital video experiences on mobile.

At launch, Flipboard is selling the ad inventory for the videos. But the company says its intent is to allow publishers to sell the inventory themselves, further down the road. (If the publisher already has an ad sales team that can sell into this, however, they can continue.)

To promote their video content, publishers can also opt to use Flipboard’s recently launched Storyboards feature which, instead of being algorithmic feeds are static collections of content they want to highlight.

“Today’s launch builds on the publisher ecosystem we’ve been fostering for almost a decade, our foundational vision for content discovery, as well as our recent work around Flipboard TV,” said Mike McCue, Flipboard’s co-founder and CEO, about the launch. “The new native video player opens up new opportunities for new user experiences, partnerships and monetization. I expect us to partner with more creators and independent producers in the near future.”

The new features are rolling out today within the Flipboard app in the U.S.

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Our 11 favorite companies from Y Combinator’s S20 Demo Day: Part I

Startup incubator and investment group Y Combinator today held the first of two demo days for founders in its Summer 2020 batch.

So far, this cohort contains the usual mix of bold, impressive and, at times, slightly wacky ideas young companies so often show off.

This was Y Combinator’s second online demo day, its first all-virtual class and the first time that it held live, remote pitches. The event largely went well, with founders dialing in from around the globe to share a few paragraphs of notes and a single slide. There were few technical hiccups, given the sheer number of startups presenting.

But if you are not in the mood to parse through dozens (and dozens) of entries detailing each startup that showed off its problem, solution and growth, the TechCrunch crew has collected our own favorites based on how likely a company seems to succeed and how impressed we were with the creativity of their vision. For each entry, one staffer made the call that the startup in question was among their favorites.

We’re not investors, so we’re not pretending to sort the unicorns from the goats. But if what you need is a digest of some of the day’s best companies to get a good taste of what founders are building, we have your back.

ZipSchool and Hellosaurus

Natasha Mascarenhas

The next wave of edtech startups is entering a market that demands a better remote-learning solution for younger learners. But that’s the obvious product gap, one that is already being tackled by the biggest names in the booming category.

The non-obvious product-market deficit is how teachers, also impacted by the pandemic, are searching for new ways to interact with students. Teachers are collaborating and cross-pollinating on successful lesson plans that work across stale Zoom screens, so why not monetize that same content?

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Meet the anti-antitrust startup club

When Congress called in tech CEOs to testify a few weeks ago, it felt like a defining moment. Hundreds of startups have become unicorns, with the largest worth more than $1 trillion (or perhaps $2 trillion). Indeed, modern tech companies have become so entrenched, Facebook is the only one of the Big Five American tech shops worth less than 13 figures.

The titanic valuations of many companies are predicated on current performance, cash on hand and lofty expectations for future growth. The pandemic has done little to stem Big Tech’s forward march and many startups have seen growth rates accelerate as other sectors rushed to support a suddenly remote workforce.

But inside tech’s current moment in the sun is a concern that Congress worked to highlight: Are these firms behaving anti-competitively?

By now you’ve heard the arguments concerning why Big Tech may be too big, but there’s a neat second story that we, the Equity crew, have been chatting about: Some startups are racing into the big kill zone.

They have to be a bit foolhardy to take on Google Gmail and Search, Amazon’s e-commerce platform or Apple’s App Store. Yet, there are startups targeting all of these categories and more, some flush with VC funding from investors who are eager to take a swing at tech’s biggest players

If the little companies manage to carve material market share for themselves, arguments that Big Tech was just too big to kill — let alone fail — will dissolve. But today, their incumbency is a reality and these startups are merely bold.

Still, when we look at the work being done, there are enough companies staring down the most valuable companies in American history (on an unadjusted basis) that we had to shout them out. Say hello to the “anti-antitrust club.”

Hey and Superhuman are coming after Gmail

Gmail has been the undisputed leader in consumer email for years (if not enterprise email, where Microsoft has massive inroads due to Exchange and Outlook). Startups have contested that market, including Mailbox, which sold to Dropbox for about $100 million back in 2013, but whenever a new feature came along that might entice users, Gmail managed to suck it up into its app.

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Zoom UX teardown: 5 fails and how to fix them

Valued at over $60 billion and used by millions each day for work and staying in touch with friends and family, the COVID-19 pandemic has helped make Zoom one of the most popular and relevant enterprise applications.

On one level, its surge to the top can be summed up in three words: “It just works.” However, that doesn’t mean Zoom’s user experience is perfect — in fact, far from it.

With the help of Built for Mars founder and UX expert Peter Ramsey, we dive deeper into the user experience of Zoom on Mac, highlighting five UX fails and how to fix them. More broadly, we discuss how to design for “empty states,” why asking “copy to clipboard” requests are problematic and other issues.

Always point to the next action

This is an incredibly simple rule, yet you’d be surprised how often software and websites leave users scratching their heads trying to figure what they’re expected to do next. Clear signposting and contextual user prompts are key.

The fail: In Zoom, as soon as you create a meeting, you’re sat in an empty meeting room on your own. This sucks, because obviously you want to invite people in. Otherwise, why are you using Zoom? Another problem here is that the next action is hidden in a busy menu with other actions you probably never or rarely use.

The fix: Once you’ve created a meeting (not joined, but created), Zoom should prompt and signpost you how to add people. Sure, have a skip option. But it needs some way of saying “Okay, do this next.”

Steve O’Hear: Not pointing to the next action seems to be quite a common fail, why do you think this is? If I had to guess, product developers become too close to a product and develop a mindset that assumes too much prior knowledge and where the obvious blurs with the nonobvious?

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Just what would an enterprise company like Microsoft or Oracle do with TikTok?

By now you’ve probably heard that under pressure from the current administration, TikTok owner ByteDance is putting the viral video service up for sale, and surprisingly a couple of big name enterprise companies are interested. These organizations are better known for the kind of tech that would bore the average TikTok user to tears. Yet, stories have persisted that Microsoft and even Oracle are sniffing around the video social network.

As TechCrunch’s Danny Crichton pointed out last week, bankers involved in the sale have a lot of motivation to leak rumors to the press to drive up the price of TikTok. That means none of this might be true, yet the rumors aren’t going away. It begs the question: Why would a company like Oracle or Microsoft be interested in a property like TikTok?

For starters, Oracle is a lot more than the database company it was known for in the past. These days, it has its fingers in many, many pies, including marketing automation and cloud infrastructure services. In April, as the pandemic was just beginning to heat up, Zoom surprised just about everyone when it announced a partnership with Oracle’s cloud arm.

Oracle isn’t really even on the board when it comes to cloud infrastructure market share, where it is well behind rivals AWS, Microsoft, Google, Alibaba and IBM, wallowing somewhere in single-digit market share. Oracle wants to be a bigger player.

Meanwhile, Microsoft has successfully transitioned to the cloud as well as any company, but still remains far behind AWS in the cloud infrastructure market. It wants to close the gap with AWS, and owning TikTok could get it closer to that goal faster.

Simply put, says Holger Mueller, an analyst at Constellation Research, if Oracle combined Zoom and TikTok, it could have itself a couple of nice anchor clients. Yes, like the proverbial mall trying to attract Target and Nordstrom, apparently Oracle wants to do the same with its cloud service, and if it has to buy the tenant, so be it.

“TikTok will add plenty of load to their infrastructure service. That’s what matters to them with viral loads preferred. If Microsoft gets TikTok it could boost their usage by between 2% and 5%, while for Oracle it could be as much 10%,” he said. He says the difference is that Oracle has a much smaller user base now, so it would relatively boost its usage all the more.

As Mueller points out, with the government helping push TikTok’s owner to make the sale, it’s a huge opportunity for a company like Oracle or Microsoft, and why the rumors have weight. “It’s very plausible from a cloud business perspective, and plausible from a business opportunity perspective created by the U.S. government,” he said.

While it could make sense to attract a large user base to your systems to drive up usage and market share in that way, Brent Leary, founder and principal analyst at CRM Essentials, says that just by having a large U.S. tech company buy the video app could make it less attractive to the very users Microsoft or Oracle is hoping to capture.

“An old-guard enterprise tech company buying Tiktok would likely lessen the appeal of current users. Younger people are already leaving Facebook because the old folks have taken it over,” Leary said. And that could mean young users, who are boosting the platform’s stats today, could jump ship to whatever is the next big social phenomenon.

It’s worth pointing out that just today, the president indicated support for Oracle, according to a Wall Street Journal report. The publication also reported that Oracle’s billionaire owner Larry Ellison is a big supporter of the president, having thrown him a fundraiser for his reelection bid at his house earlier this year. Oracle CEO Safra Catz also has ties to the administration, having served on the transition team in 2016.

It’s unclear whether these companies have a genuine interest, but the general feeling is someone is going to buy the service, and whoever does could get a big boost in users simply by using some percentage of their cash hordes to get there. By the way, another company with reported interest is Twitter. Certainly putting the two social platforms together could create a mega platform to compete more directly with Facebook.

You might see other big names trying to boost cloud infrastructure usage, like IBM or Google, enter the fray.  Perhaps even Amazon could make an offer to cement its lead, although if the deal has to go through the federal government, that makes it less likely, given the tense relationship between Amazon CEO Jeff Bezos and the president that surfaced during the Pentagon JEDI cloud contract drama.

Apple has already indicated that in spite of having the largest cash on hand of any company, with over $193 billion, give or take, it apparently isn’t interested. Apple may not be, but somebody surely is, even some companies you couldn’t imagine owning a property like this.

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Mux raises $37M Series C as its API-based video streaming service scales

This morning, Mux, a startup that provides API-based video streaming tooling and analytics, announced that it has closed a $37 million Series C round of capital.

Andreessen Horowitz led the round, which included participation from Accel and Cobalt. Prior to this funding round, Mux most recently raised a roughly $20 million round in mid-2019. In total, the company had raised a hair under $32 million before its Series C, according to PitchBook data.

The Mux round lands amidst a number of trends that we’re tracking here at TechCrunch, namely API-based startups, which are hot as a group at the moment, and startups that are serving an accelerating digital transformation.

Let’s explore a bit of Mux’s history, and then dig into how the startup’s current pace of revenue growth explains its fresh infusion of capital.

From exits to analytics to APIs

TechCrunch spoke with Mux’s founder Jon Dahl about the round, curious about how the company came to be. Dahl was a co-founder of Zencoder back in the early 2010s, which sold to Brightcove. When Zencoder launched, TechCrunch said that it wanted “to be the Amazon Web Services of video encoding.” It wound up selling for $30 million, a figure that stood a bit taller in 2012, when the transaction was announced.

Dahl stuck around Brightcove for a few years while angel investing. Then in late 2015 he founded Mux. The new startup first built an analytics tool called Mux Data. Dahl said the analytics product was needed because more conventional tooling like Google Analytics don’t work well with online video.

Mux Data is a SaaS product. But what made Mux even more interesting is its on-demand infra play, namely Mux Video.

Mux Video is delivered via an API, supporting both live and on-demand video for other companies. The startup likes to argue that it’s doing for video what Stripe has done for payments, namely take a bundle of complexity and headache, wrestle it into shape, then offer it via a developer-friendly hook.

Delivering video, we’ve seen via the bootstrapped growth of Cloudinary and recent Daily.co round, is growing work in 2020.

That fact shows up in Mux’s numbers, which are somewhat bonkers. The company’s aggregate revenue numbers are growing at a pace that Dahl described as 4x, while Mux Video’s revenues are growing at a pace of 8x, he said. Dahl shared a few other metrics — startups: if you want folks to care about your funding round, follow this example — including that Mux Video’s LTV/CAC ratio is somewhere around 5x-6x, and that its net retention is around 160%.

The collected performance data that Mux shared explain why a16z wanted to put its capital into the company.

But to better understand that all the same, I caught up with Kristina Shen, a general partner at the venture firm. Shen stressed that Mux was heading in the right direction before the pandemic, but that COVID has accelerated the importance of video in how humans interact with one another — an accelerating secular shift for Mux to surf, in other words.

COVID has bolstered Mux, with a release regarding its new investment, noting that its “social media customers [have seen] an increase of 118% in video streaming since mid-February while fitness and health streaming surged by 162%, e-learning grew by 230% and religious streams jumped nearly 3 orders of magnitude.”

Shen said during our call that Mux is one of the fastest-growing enterprise SaaS companies that her firm has seen.

Finally, when asked about Mux’s gross margins, Shen said the company would eventually look similarly to other companies in the infra space, like Twilio and Stripe. This matches what Dahl told this publication, though the founder included a fun wrinkle. Remember Mux Data, the analytics product? Its margins more closely resembles SaaS economics, while Mux Video is more similar to other API, infra plays. So Mux has a bit of SaaS and a bit of infra in it, which should give it a super interesting blended gross margin profile.

Fun. The next time we talk to the firm we’ll be curious to see how far into the double-digit millions it can stretch its run rate.

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Kudo raises $6M for its real-time translation and video conference platform

SaaS is hot in 2020. Tooling that helps facilitate remote work is hot in 2020. And we all know that anything related to video chatting in particular is on fire this year. In the midst of all three trends is Kudo, which just raised $6 million in a round led by Felicis.

But Kudo’s video chatting and conferencing tool with built-in support for translators and multiple audio streams wasn’t initially constructed for the COVID-19 era. It got started back in 2016, so let’s talk about how it got to where it is today before we talk about how much the pandemic and ensuing remote-work boom accelerated its growth by what the company described in a release as 3,500%.

Pain to proof to product

TechCrunch spoke to Fardad Zabetian, Kudo’s founder and CEO, earlier this week to learn about how his company got started. According to the executive, he started working on Kudo back in 2016 after feeling the need to add language support to what he calls decentralized meetings.

After getting a proof of concept (could interactive audio and video be compiled for remote participants with less than 500 milliseconds of latency?) in place, the company itself launched in 2017, and after more work its product was put into the market in September, 2018.

During that time, Kudo put together angel and friends-and-family money that Zabetian described as less than $1 million, meaning that the startup got a lot done without spending a lot. (In my experience, talking to founders over the last decade or so, that’s a good sign.)

All that work paid off this year when COVID-19 shook up the world, forcing companies to cancel business travel and instead lean on video conferencing solutions. Given the international nature of modern business — globalization is a fact, regardless of what nationalists want — the change in the world’s meeting landscape scooted demand toward Kudo.

Here’s how it works: Kudo provides a self-serve SaaS video conferencing solution, allowing any company to spin up meetings as they need. It also has a translator pool, and can supply humans to fill out a meeting’s needs if a customer wants. Or, customers can bring their own translators.

So, Kudo is SaaS with an optional services component, though given the lower margins inherent to services over software, I’d hazard that we should think of its services revenue as a helper to its SaaS incomes. There’s no need to fret about their impact on Kudo’s blended gross margins, in other words.

According to Zabetian, about three-quarters of its customers bring their own translators, while about a fourth hire them through Kudo’s cadre.

Growth

As noted, Kudo got into the market back in 2018, which means it was already selling its software in the pre-pandemic days. Lead investor Niki Pezeshki told TechCrunch that Kudo has “stepped up in a big way for its customers during the pandemic,” but that while COVID “has certainly accelerated Kudo’s growth, we think they are enabling a longer-term shift in the market by showing customers that it is possible to effectively run multilingual conferences and meetings without the hassle of international travel and all the planning that goes into it.”

Kudo was already right about where the world was going, then, even if the pandemic provided a boost.

That tailwind is evident in its round size, notably. Kudo’s CEO said that he set out to raise $2 million, not $6 million; the $4 million delta is indicative of a company that has become a competitive asset for the venture class to fight over.

And Kudo’s growth has brought with it notable financial benefits, including several months of cash flow positivity — something nearly unheard of amongst startups of its age and size. But the company will spend from its $6 million and push that line-item negative, it said. Kudo has 30 open positions today that it expects to fill in the next few quarters, including building out its sales and marketing functions, which to date it has not invested in (another good sign among startups is how long they can grow attractively without needing to spend heavily on sales and marketing). That won’t come cheap, in the short-term.

So that’s Kudo and its round. What we want to know next is its H1 2020 year-over-year revenue growth. Do write in if you know that number.

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Spotify launches video podcasts worldwide, starting with select creators

Spotify today announced the global launch of video podcasts. The new feature at launch will allow users, including both free users and paid subscribers, to watch the video content from a select group of creator podcasts. But unlike on YouTube, where only paid subscribers can listen to YouTube video content in the background while they do other things on their device, Spotify says its users will be able to seamlessly move between the video version and the audio. When multitasking, audio content will continue to play in the background, as you use other apps or even if you lock your phone.

The video podcasts are supported on both the desktop and mobile app — and video will serve as an additional component, not a replacement for the audio. That means you’ll still be able to stream the audio or download the podcast for offline listening, if need be.

For creators, the launch of video podcasts represents an opportunity to grow their audience, says Spotify. Often, podcasts already have a video option — but until now, Spotify offered no way for creators to share it on its platform. That meant podcast creators would distribute their audio podcast on Spotify and other podcast distribution services, but would publish their videos to YouTube. They may continue to do, of course — especially if they’ve built a YouTube fan base for their work and no deal prevents it.

But being able to publish directly on Spotify means creators will be able to connect more directly with podcast listeners, rather than having to compete on a broader platform that pits their shows against a wide variety of other content. Video also gives Spotify a new place to sell advertising, but the company declined to comment on its ad strategy, saying it was still in the “early stages” of its video efforts.

Only a handful of podcasts are offered starting today, including Book of Basketball 2.0, Fantasy Footballers, The Misfits Podcast, H3 PodcastThe Morning ToastHigher Learning with Van Lathan & Rachel Lindsay and The Rooster Teeth Podcast. These are only available in the markets where podcasts are already supported, Spotify says.

These podcasts include a combination of originals, exclusives and third-party podcasts. Their creators are the only ones that today have the ability to upload their own video content. In the future, Spotify will continue to expand the feature.

The company’s move into video was almost inevitable. In February, Spotify acquired The Ringer to boost its podcast sports content. The deal came with a YouTube-based video operation, which signaled an interest in an expanded media footprint.

Spotify has since inked high-profile podcast deals that could also easily translate to video, too, including one with Warner Bros. focused on DC superheros, which Spotify said in June could later include “new programming from original intellectual property.” It also landed an exclusive deal with Kim Kardashian West, The WSJ reported last month. It brought The Joe Rogan Experience in-house, in yet another exclusive. And just yesterday, Spotify booked a podcast deal with TikTok star Addison Rae.

Spotify didn’t announce video plans in these areas today, but it definitely has access to talent — and offering video could allow it to better negotiate future deals, as well.

Spotify was spotted testing video podcasts earlier this year, but it was with YouTube stars Zane Hijazi and Heath Hussar, of Zane and Heath: Unfiltered, who weren’t mentioned in today’s news announcement.

Video podcasts will begin rolling out today in supported markets. So you may not see the addition immediately, but should soon.

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Google’s latest R&D project is Shoploop, a mobile video shopping platform

Google’s latest experiment is a video shopping platform designed to introduce consumers to new products in under 90 seconds. The company today is launching Shoploop, a project from Google’s internal R&D division, Area 120, where it tests out new ideas with a public user base.

Shoploop’s founder, Lax Poojary, had previously worked on online trip planner, Touring Bird, also at Area 120. Last year, that effort became one of a small number of R&D projects to graduate and become a part of Google itself. 

Poojary says his new idea for interactive shopping was inspired by how consumers today use a combination of social media and e-commerce sites together when considering purchases. For example, users will pop between a social media app, like Instagram, then head to YouTube to see a tutorial or demo, then — if they like what they saw — actually make a purchase.

Of course, video shopping is not a novel idea. A number of startups, and even large companies, have already embraced a combination of video and commerce.

Image Credits: Google

Amazon, for example, runs a livestreaming platform, Amazon Live, on its retail site. YouTube this year introduced a new shoppable ad format and is placing products to buy underneath videos. Facebook has enabled live shopping, as well, and made an acquisition in this area in 2019. Instagram now has its own Shop destination, too.

There are also a number of mobile shopping startups that have embraced video, like Dote, which raised $12 million last year. Popshop Live raised $3 million in January. NTWRK combines shopping and live events. Depop sells with both photos and videos, similar to Instagram.There’s also Yeay, Spin, and other apps. And there are startups focused on providing technology for brands and influencers engaging in this space, like Bambuser, MikMak, and Buywith, to name a few.

That is to say, Shoploop hasn’t discovered a new, untapped trend. It’s simply joining in.

The shopping experience on Shoploop is interactive. Users don’t just scroll through images and text, but instead watch videos where creators show off things like  nail stickers, hair products or makeup. The team says it’s starting with products in categories such as makeup, skincare, hair and nails and its working with creators, publishers and store owners in this market for the app’s content.

Currently, the creators work out their own brand deals for the content they showcase. The Shoploop product itself is not monetized.

The experience is similar to watching YouTube tutorials, but distilled down to the best bits. (Or perhaps it’s more like TikTok, in that case) The demos are meant to be relatable, giving consumers a feel for the brands and products in real life. When consumers find a product they like, they can save it for later or click to be directed to the merchants website to complete the purchase. The app also allows you to follow your favorite Shoploop creators and share videos with friends and family.

Such a product could prove important to Google’s larger mission around Shopping, if it gains traction. Google recently redesigned its Shopping vertical and shifted it to include mostly free listings, in response to Amazon’s growing ad business. Finding more ways to engage online consumers could be beneficial to the internet giant, and this video-slash-influencer fueled shopping experience appeals to a younger demographic, in particular.

Shoploop is launching today on mobile and is working on a desktop version. You can reach it via https://shoploop.app from your smartphone.

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Tinder now testing video chat in select markets, including US

Tinder announced this morning it will begin to test video chat in its mobile dating app with some members in select worldwide markets, including in the U.S. The feature, which allows Tinder matches to go on “virtual” dates when both opt in, will first be available to users in Virginia, Illinois, Georgia and Colorado in the U.S., as well as in Brazil, Australia, Spain, Italy, France, Vietnam, Indonesia, Korea, Taiwan, Thailand, Peru and Chile, also with some members.

Parent company Match had first promised it would introduce video chat in Tinder as part of its Q1 2020 earnings report and touted the feature as a way Tinder was evolving its business in the face of the coronavirus pandemic. The company had also then detailed the pandemic’s impact on its app, which had slowed Tinder user growth in the quarter as social distancing requirements and government lockdowns went into effect.

Tinder ended Q1 with 6 million subscribers, up from 5.9 million in December 2019 — meaning it only added 100,000 paid subscribers during the quarter. For comparison, in the year-ago quarter it added 384,000 paid users. Tinder’s average revenue per user (ARPU) also grew just 2%, mainly due to purchases of à la carte features, not subscriptions.

Tinder parent Match says it had tested video at various times before the COVID-19 outbreak, but said it never saw significant adoption. The pandemic has changed things, however. Today, Tinder allows users to search for matches worldwide through its Passport feature, making its dating app more of a social network. Meanwhile, Tinder users who do want to date now feel almost forced to use video for their early interactions instead of going on briefer “getting to know you” coffee or drink dates, as before.

Without a video option in the app, these users often turned to third-party apps like Snapchat or other video chat apps for these early connections. Meanwhile, daters who prioritized a video option may have even made the switch to rival Bumble, which has offered video for a year. Facebook also recently said it would add video for its Facebook Dating users, as a result of the coronavirus pandemic, forcing Tinder’s hand.

Image Credits: Tinder

The new feature itself is simple to use. Once two people have matched and are chatting in the app, they can indicate they’re ready to move to a video session by tapping the new video icon. The clever part is that the feature itself isn’t enabled until both matches opt in. The company notes that Tinder users won’t be informed if a match toggles on the video chat feature. The idea is to wait until the discussion comes up naturally, as it often does in a text-based chat.

When both users have toggled on video chat, they have to agree to ground rules before the chat begins. Tinder says calls should remain “PG,” with no nudity or sexual content. The chats are also supposed to stay “clean,” meaning no harassment, hate speech, violence or other illegal activities. Users also agree calls will need to be age-appropriate, meaning without minors involved.

The feature, which Tinder calls “Face to Face,” is enabled on a match-by-match basis, not universally for all matches.

How exactly Tinder plans to properly moderate what appears to be a fantastic new solicitation platform remains less clear. In addition, Tinder’s move to embrace video means it could be putting sex offenders in front of the camera. As an investigative report last year from ProPublica found, most of the Match-owned dating apps, including Tinder, were not screening for sexual predators.

For now, Tinder says users are asked to review the call when it wraps.

In a pop-up, users who finish a video call will be asked whether they would go Face to Face again. Here, they’ll also have the option to report the user, if needed. These sorts of retroactive rating systems don’t do much for anyone who feels unsafe in the moment, of course, and it’s not clear to what extent Tinder will step in to police calls in progress.

Asked for specifics, Tinder declined to share. (In an earlier report, Tinder CEO Elie Seidman suggested Tinder would use machine learning models to monitor chats.)

Also unclear is to what extent Tinder would step into to stop what may otherwise be consensual sexual activity, including of the paid variety.

Tinder doesn’t seem worried about these off-brand use cases for video chat, however. It says it recently surveyed around 5,000 members in the U.S. and around half of them have already had video dates with a match off its platform over the past month, indicating a willingness to try video for online dating. In addition, 40% of Gen Z members said they wanted to keep using video as an initial step before agreeing to meet in real life, even when places like restaurants and bars were re-opened.

“Connecting face-to-face is more important than ever, and our video chat feature represents a new way for people to get to know one another in-app no matter their physical distance,” said Rory Kozoll, head of Trust and Safety Products at Tinder, in a statement about the launch. “Face to Face prioritizes control to help our members feel more comfortable taking this next step in chats if and when it feels right for them. We’ve built a solid foundation, and look forward to learning from this test over the coming weeks,” Kozoll added.

The feature is launching in testing only starting today, in select markets.

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