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Daily Crunch: Facebook launches rap app

Facebook unveils another experimental app, Atlassian acquires a data visualization startup and Newsela becomes a unicorn. This is your Daily Crunch for February 26, 2021.

The big story: Facebook launches rap app

The new BARS app was created by NPE Team (Facebook’s internal R&D group), allowing rappers to select from professionally created beats, and then create and share their own raps and videos. It includes autotune and will even suggest rhymes as you’re writing the lyrics.

This marks NPE Team’s second musical effort — the first was the music video app Collab. (It could also be seen as another attempt by Facebook to launch a TikTok competitor.) BARS is available in the iOS App Store in the U.S., with Facebook gradually admitting users off a waitlist.

The tech giants

Atlassian is acquiring Chartio to bring data visualization to the platform — Atlassian sees Chartio as a way to really take advantage of the data locked inside its products.

Yelp puts trust and safety in the spotlight — Yelp released its very first trust and safety report this week, with the goal of explaining the work that it does to crack down on fraudulent and otherwise inaccurate or unhelpful content.

Startups, funding and venture capital

Newsela, the replacement for textbooks, raises $100M and becomes a unicorn —  If Newsela is doing its job right, its third-party content can replace textbooks within a classroom altogether, while helping teachers provide fresh, personalized material.

Tim Hortons marks two years in China with Tencent investment — The Canadian coffee and doughnut giant has raised a new round of funding for its Chinese venture.

Sources: Lightspeed is close to hiring a new London-based partner to put down further roots in Europe — According to multiple sources, Paul Murphy is being hired away from Northzone.

Advice and analysis from Extra Crunch

In freemium marketing, product analytics are the difference between conversion and confusion — Considering that most freemium providers see fewer than 5% of free users move to paid plans, even a slight improvement in conversion can translate to significant revenue gains.

As BNPL startups raise, a look at Klarna, Affirm and Afterpay earnings — With buy-now-pay-later options, consumers turn a one-time purchase into a limited string of regular payments.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

Jamaica’s JamCOVID pulled offline after third security lapse exposed travelers’ data — JamCOVID was set up last year to help the government process travelers arriving on the island.

AT&T is turning DirecTV into a standalone company — AT&T says it will own 70% of the new company, while private equity firm TPG will own 30%.

How to ace the 1-hour, and ever-elusive, pitch presentation at TC Early Stage — Norwest’s Lisa Wu has a message for founders: Think like a VC during your pitch presentation.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.



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Facebook launches BARS, a TikTok-like app for creating and sharing raps

Facebook’s internal R&D group, NPE Team, is today launching its next experimental app, called BARS. The app makes it possible for rappers to create and share their raps using professionally created beats, and is the NPE Team’s second launch in the music space following its recent public debut of music video app Collab.

While Collab focuses on making music with others online, BARS is instead aimed at would-be rappers looking to create and share their own videos. In the app, users will select from any of the hundreds of professionally created beats, then write their own lyrics and record a video. BARS can also automatically suggest rhymes as you’re writing out lyrics, and offers different audio and visual filters to accompany videos as well as an autotune feature.

There’s also a “Challenge mode” available, where you can freestyle with auto-suggested word cues, which has more of a game-like element to it. The experience is designed to be accommodating to people who just want to have fun with rap, similar to something like Smule’s AutoRap, perhaps, which also offers beats for users’ own recordings.

Image Credits: Facebook

The videos themselves can be up to 60 seconds in length and can then be saved to your Camera Roll or shared out on other social media platforms.

Like NPE’s Collab, the pandemic played a role in BARS’ creation. The pandemic shut down access to live music and places where rappers could experiment, explains NPE Team member DJ Iyler, who also ghostwrites hip-hop songs under the alias “D-Lucks.”

“I know access to high-priced recording studios and production equipment can be limited for aspiring rappers. On top of that, the global pandemic shut down live performances where we often create and share our work,” he says.

BARS was built with a team of aspiring rappers, and today launched into a closed beta.

Image Credits: Facebook

Despite the focus on music, and rap in particular, the new app in a way can be seen as yet another attempt by Facebook to develop a TikTok competitor — at least in this content category.

TikTok has already become a launchpad for up-and-coming musicians, including rappers; it has helped rappers test their verses, is favored by many beatmakers and is even influencing what sort of music is being made. Diss tracks have also become a hugely popular format on TikTok, mainly as a way for influencers to stir up drama and chase views. In other words, there’s already a large social community around rap on TikTok, and Facebook wants to shift some of that attention back its way.

The app also resembles TikTok in terms of its user interface. It’s a two-tabbed vertical video interface — in its case, it has  “Featured” and “New” feeds instead of TikTok’s “Following” and “For You.” And BARS places the engagement buttons on the lower-right corner of the screen with the creator name on the lower-left, just like TikTok.

However, in place of hearts for favoriting videos, your taps on a video give it “Fire” — a fire emoji keeps track. You can tap “Fire” as many times as you want, too. But because there’s (annoyingly) no tap-to-pause feature, you may accidentally “fire” a video when you were looking for a way to stop its playback. To advance in BARS, you swipe vertically, but the interface is lacking an obvious “Follow” button to track your favorite creators. It’s hidden under the top-right three-dot menu.

The app is seeded with content from NPE Team members, which includes other aspiring rappers, former music producers and publishers.

Currently, the BARS beta is live on the iOS App Store in the U.S., and is opening its waitlist. Facebook says it will open access to BARS invites in batches, starting in the U.S. Updates and news about invites, meanwhile, will be announced on Instagram.

Facebook’s recent launches from its experimental apps division include Collab and collage maker E.gg, among others. Not all apps stick around. If they fail to gain traction, Facebook shuts them down — as it did last year with the Pinterest-like video app Hobbi.



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Brandwatch is acquired by Cision for $450M, creating a PR, marketing and social listening giant

Online consumer intelligence and social media listening platform Brandwatch has been acquired by Cision, best known for its media monitoring and media contact database services, for $450 million, in a combined cash and shares deal. TechCrunch understands Brandwatch’s key executive team will be staying on. The move combines two large players to offer a broad range of services, from PR to marketing and online customer engagement. The deal is expected to close in the second quarter of 2021.

Cision has a media contact database of approximately 1 million journalists and media outlets and claims to have over 75,000 customers. Brandwatch applies AI and machine learning to the practice known as “social listening”.

Along the way, Brandwatch raised a total of around $65 million. It was Series A-funded by Nauta Capital, followed by Highland Europe and then Partech.

In a statement, Giles Palmer, founder, and CEO of Brandwatch said: “We have always built Brandwatch with ambition… Now is the time to take the next step – joining a company of significant scale to create a business and a suite of products that can have an important global impact.”

Abel Clark, CEO of Cision said: “The continued digital shift and widespread adoption of social media is rapidly and fundamentally changing how brands and organizations engage with their customers. This is driving the imperative that PR, marketing, social, and customer care teams fully incorporate the unique insights now available into consumer-led strategies. Together, Cision and Brandwatch will help our clients to more deeply understand, connect and engage with their customers at scale across every channel.”

Brandwatch has been on an almost case-study of a journey from fundraising to acquisition to a merger, but less characteristically for a well-funded tech company, it did much of it from its hometown of Brighton, on the southern coast of England.

The financing journey began for Giles Palmer, with angel funding in 2006. In 2010 Brandwatch raised $1.5 million from Durrants, a marketing and PR firm, and a Series A round from Nauta Capital. In 2014 it raised $22 million in funding in a Series B round led by Highland Europe. That was followed by a $33 million Series C financing led by Partech Ventures in 2015.

With the war chest, it went on to acquire BuzzSumo in 2017, a content marketing and influencer identification platform, for an undisclosed sum. And in 2019 Brandwatch merged with a similar business, Crimson Hexagon, creating a business with around $100 million in ARR. It also acquired the London-based SaaS research platform Qriously.

Brandwatch was recently named a leader in Forrester’s guide for buyers of social listening solutions.



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Daily Crunch: Twitter announces ‘Super Follow’ subscriptions

Twitter reveals its move into paid subscriptions, Australia passes its media bargaining law and Coinbase files its S-1. This is your Daily Crunch for February 25, 2021.

The big story: Twitter announces ‘Super Follow’ subscriptions

Twitter announced its first paid product at an investor event today, showing off screenshots of a feature that will allow users to subscribe to their favorite creators in exchange for things like exclusive content, subscriber-only newsletters and a supporter badge.

The company also announced a feature called Communities, which could compete with Facebook Groups and enable Super Follow networks to interact, plus a Safety Mode for auto-blocking and muting abusive accounts. On top of all that, Twitter said it plans to double revenue by 2023.

Not announced: launch dates for any of these features.

The tech giants

After Facebook’s news flex, Australia passes bargaining code for platforms and publishers — This requires platform giants like Facebook and Google to negotiate to remunerate local news publishers for their content.

New Facebook ad campaign extols the benefits of personalized ads — The sentiments are similar to a campaign that Facebook launched last year in opposition to Apple’s upcoming App Tracking Transparency feature.

Startups, funding and venture capital

Sergey Brin’s airship aims to use world’s biggest mobile hydrogen fuel cell — The Google co-founder’s secretive airship company LTA Research and Exploration is planning to power a huge disaster relief airship with an equally record-breaking hydrogen fuel cell.

Coinbase files to go public in a key listing for the cryptocurrency category — Coinbase’s financials show a company that grew rapidly from 2019 to 2020 while also crossing the threshold into unadjusted profitability.

Boosted by the pandemic, meeting transcription service Otter.ai raises $50M — With convenient timing, Otter.ai added Zoom integration back in April 2020.

Advice and analysis from Extra Crunch

DigitalOcean’s IPO filing shows a two-class cloud market — The company intends to list on the New York Stock Exchange under the ticker symbol “DOCN.”

Pilot CEO Waseem Daher tears down his company’s $60M Series C pitch deck — For founders aiming to entice investors, the pitch deck remains the best way to communicate their startup’s progress and potential.

Five takeaways from Coinbase’s S-1 — We dig into Coinbase’s user numbers, its asset mix, its growing subscription incomes, its competitive landscape and who owns what in the company.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

Paramount+ will cost $4.99 per month with ads — The new streaming service launches on March 4.

Register for TC Sessions: Justice for a conversation on diversity, equity and inclusion in the startup world — This is just one week away!

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.



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Twitter plans to double revenue by 2023, reach 315M daily users

Just ahead of its 2021 virtual investor day on Thursday, Twitter this morning announced its three long-term goals focused on user base and revenue growth, and a faster pace of shipping new features across its platform. The company said it aims to “at least” double its total annual revenue from $3.7 billion in 2020 to $7.5 billion or more in 2023. It also expects to reach at least 315 million mDAUs — that’s Twitter’s self-invented metric for “monetizable” daily active users — by the fourth quarter of 2023.

That would represent a roughly 20% compound annual growth rate from Twitter’s base of 152 million mDAUs reported in the fourth quarter of 2019, the company noted in a new SEC filing.

Active user growth has been difficult for Twitter — the growth tends to be slow or even flat, at times. Per Twitter’s most recent earnings, mDAUs in the fourth quarter 2020 had reached 192 million instead of the 193.5 million expected, for instance. Investors are used to Twitter under-delivering on this metric — or even inventing its own user base metric to hide that its monthly user growth sometimes declines.

In any event, Twitter’s longer-term plans indicate it believes it will finally be able to deliver on user growth — perhaps aided by its investment in new features.

In its filing, Twitter said it would “double development velocity by the end of 2023,” which means doubling the number of features shipped per employee that “directly drive either mDAU or revenue,” it said.

On this front, Twitter has been fairly active in recent months. Late last year, it launched its “stories” feature called Fleets to its global audience. It’s also now testing new features including a Clubhouse rival, Twitter Spaces, and a community-led misinformation debunking effort known as Birdwatch. And it acquired newsletter platform Revue, which is already now integrated on the Twitter website. The company has made smaller acquisitions, as well, to build out product teams, including with social app Squad, stories template maker Chroma Labs, and podcasting app Breaker.

New features may help to attract increased Twitter usage, but revenue growth will also come from diversification beyond advertising. Twitter has spoken several times about its plans to build out a subscription product, which the company said would begin in 2021 but wouldn’t impact Twitter revenue in the near-term. The company has also said it may investigate other areas of monetization, like tipping and various paid consumer-facing features.

Today, Twitter said publicly it plans to reach the $7.5 billion or more target by “growing our audience and gaining advertising market share in both brand and direct response.” But the company did not speak to its plans for subscriptions.

Investors are already responding favorably to Twitter’s announcements this morning. Twitter stock is up by nearly 7% as of the time of writing.



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New Facebook ad campaign extols the benefits of personalized ads

Online advertising can be a “pretty dry topic,” as Facebook’s head of brand marketing Andrew Stirk acknowledged, but with a new campaign of its own, the social networking giant is looking to “bring to life how personalized ads level the playing field” for small businesses.

The Good Ideas Deserve To Be Found campaign will include TV, radio and digital advertising. Individual businesses will also be able to promote it using a new Instagram sticker and the #DeserveToBeFound hashtag on Facebook.

The campaign will highlight specific small businesses on Facebook, including bag and luggage company House of Takura, whose founder Annette Njau spoke about the benefits of digital advertising at a press event yesterday.

“What those platforms allow us to do is, they allow us to tell stories,” Njau said. “I can’t tell this story on TV, I can’t tell this story in a huge magazine because it costs money and I don’t know who will see it.”

These sentiments are similar to a campaign that Facebook launched last year in opposition to Apple’s upcoming App Tracking Transparency feature, where apps will have to ask for permission before sharing user data for third-party ad targeting. In response, Facebook claimed that it was “standing up to Apple for small businesses everywhere,” though the social network also pointed to these changes as one of the “more significant advertising headwinds” that it expects to face this year. (Apple’s Tim Cook, in contrast, has said that these changes provide consumers with the control that they’ve been asking for.)

When asked how this fits into the broader dispute with Apple, Stirk said that while Facebook has been publicly opposed to Apple’s changes, this campaign is part the company’s longer-term support for small business.

“There is a degree of urgency in the fact that … small businesses are hurting right now,” he said.

Head of Facebook Business Products Helen Ma added that this is “very much an extension of the work that we did on the product side at the very start of the COVID period,” which included the launch of the Businesses Nearby section and a #SupportSmallBusiness hashtag.

In addition to launching the campaign today, Facebook is announcing several product changes, including a simplified Ads Manager dashboard, new options for restaurants to provide more information about their dining experiences and more information about personalized ads in Facebook’s Business Resource hub and Instagram’s Professional Dashboard.

The company also said it will continue to waive fees on transactions through Checkouts on Shops through June 2021, and will do the same for fees collected on paid online events until August 2021 at the earliest.



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After Facebook’s news flex, Australia passes bargaining code for platforms and publishers

A week after Facebook grabbed eyeballs globally by blocking news publishers and turning off news-sharing on its platform in Australia, the country’s parliament has approved legislation that makes it mandatory for platform giants like Facebook and Google to negotiate to remunerate local news publishers for their content, to take account of how journalism is shared on their platforms.

The News Media and Digital Platforms Mandatory Bargaining Code was developed in conjunction with Australia’s Competition and Consumer Commission (ACCC) with the aim of addressing the power imbalance that exists between digital platforms and news businesses.

Facebook and Google had both lobbied aggressively against the legislation, with Google initially threatening to close down its search engine in Australia — before changing tack and hurrying to strike deals with local publishers in a bid to undercut the law by showing an alternative model.

But none of the tech giants’ moves derailed the legislative effort entirely.

“The Code will ensure that news media businesses are fairly remunerated for the content they generate, helping to sustain public interest journalism in Australia,” said treasury minister Josh Frydenberg and communications minister Paul Fletcher in a joint statement today.

“The Code provides a framework for good faith negotiations between the parties and a fair and balanced arbitration process to resolve outstanding disputes,” they added.

The operation of the code will be reviewed by the government within a year “to ensure it is delivering outcomes that are consistent with the Government’s policy intent”, they added.

On Tuesday Facebook reversed course on its intentionally over-broad news ban after the government agreed to make amendments to the draft legislation — including adding a two-month mediation period to allow digital platforms and publishers to agree deals before being forced to enter into arbitration.

The government also agreed to take platforms’ existing deals with publishers into account before deciding whether the code applies to them and provide them with one month’s notice before taking a final decision.

Facebook said it was satisfied with the tweaks, having been concerned commercial deals it struck off its own bat would not be taken into account.

In a blog post which the tech giant entitled “the real story” (yes, really), Facebook’s chief spin doctor, Nick Clegg — aka the former deputy prime minister of the UK — wrote that the law as originally drafted would have forced it to pay “potentially unlimited amounts of money to multi-national media conglomerates under an arbitration system that deliberately misdescribes the relationship between publishers and Facebook”.

“Thankfully, after further discussion, the Australian government has agreed to changes that mean fair negotiations are encouraged without the looming threat of heavy-handed and unpredictable arbitration,” Clegg added.

Who exactly has come out on top in this stand off between a sovereign government and two of the biggest tech giants in the world remains to be seen. But if Facebook and Google were hoping to block the law they certainly failed.

Claims by the Australian government that public interest journalism has won are, however, being tempered by critical suggestions that the law will merely end up favoring big media over small publishers — after all, it’s the larger publishers Google has rushed to strike deals with, for example.

How much of the adtech duopoly’s money ends up trickling down to support smaller publishers and grow media pluralism in Australia isn’t yet clear. But the suspicion among some is that the whole episode amounts to a shake down of big tech by big media via their friends in government — and that ugly oligarchy won.

There is also the risk that by directly linking the funding of public interest journalism — and therefore, by implication, the vitality of a country’s democracy — to tech giants like Facebook and Google it will further entrench the monopoly positions of those selfsame giants.

Suddenly calls to break up Google et al can be conflated with ‘harming democracy’ by taking money away from ‘public interest journalism’. Even just the claim of support suggests rich PR pickings for Facebook and co.

Yet these are platform giants that already have massive and unprecedented power over the public information sphere — as Facebook just demonstrated, via its flex against legislators (showing it can flip a switch to crater traffic to all sorts of publicly valuable information if it so chooses, leaving all its users in an entire country vulnerable to disinformation).

Their dominance has also long been implicated in harming democracy around the world — as their ad-funded business models profile people and amplify content for profit, without any kind of public service mission (quite unlike traditional media).

So if the tech giants were looking for a cheap way to reduce their antitrust risk then paying over a couple of billion every few years to regional publishers (who they may hope will also dial down their techlash rhetoric as a result) probably doesn’t sound so bad.

Facebook said this week that it plans to spend at least $1BN on ‘supporting’ the news media over the next three years. Google also recently outted a $1BN fund for news licensing fees.

Neither company can claim it just discovered the existence of journalism; it’s crystal clear these suddenly pledged billions are only on the table because lawmakers have made platforms paying for news mandatory. (Australia is not alone here; EU lawmakers also legislated in recent years to extend copyright to cover snippets of news — which is starting to result in Google striking licensing deals with publishers in Europe.)

So news publishers are certainly winning by gaining revenue that wasn’t being made available to them before. Though at what wider cost — if the mechanism being used to support them helps entrench anti-democratic monopolists?

The lack of transparency around the commercial deals being struck between platforms and publishers is certainly unhelpful. Without clarity on such arrangements the risk, again, is that the law will favor the big publishers while the smaller ones (who may have more of a public interest mission) will be at a disadvantage — needing to work even harder to compete with tabloid giants further fattened up with fresh adtech profits.

Australia has for certain won something, though. It’s bagged the world’s attention for taking on tech giants through a legislative code.

Its direct thrust at Facebook and Google — coming up with a framework tailor made to take on their market power — has caught the eye of other policymakers and competition regulators.

The chief of the UK’s Competition and Markets Authority, Andrea Coscelli, said this week that he’s watching the media code with interest as the UK government moves at a clip to set up a pro-competition regulator with the aim of reining in big tech, calling Australia’s approach of having a backstop of mandatory arbitration if commercial negotiations fail “a sensible one”.

“We are definitely following what’s happening in Australia,” he told the BBC. “We think they are dealing with problems we have in the UK as well and they are coming up with possible solutions to that. There are many variants to it but certainly I think it’s a very important data point for what we could in the UK.”

Asked if the UK should follow Australia’s example, Coscelli gave a cautious thumbs up to something along those lines, saying: “We have said we should also think about fair trading between publishers and the platforms for news content. So I know both government and parliament is certainly interested in what’s happening in Australia — and potentially thinking about something similar.”



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India sets more stringent rules for social media, streaming services

India announced sweeping changes to its guidelines for social media, on-demand video streaming services, and digital news outlets on Thursday, joining several other nations in posing new challenges for giants such as Facebook and Google that count the nation as its biggest market by users.

Ravi Shankar Prasad, India’s IT, Law, and Justice minister, said in a press conference that social media companies will be required to acknowledge takedown requests of unlawful content within 24 hours and deliver a complete redressal in within 15 days. In sensitive cases that surround rape or other similar criminal cases, firms will be required to take down the objectionable content within 24 hours.

These firms will also be required to appoint a chief compliance officer, a nodal contact officer, who shall be reachable round the clock, and a resident grievance officer. They will also have to set up a local office in India.

Prasad said social media firms will have to disclose the originator of objectionable content. “We don’t want to know the content, but firms need to be able to tell who was the first person who began spreading misinformation and other objectionable content,” he said. WhatsApp has previously said that it can’t comply with such traceability requests without compromising end-to-end encryption security for every user.

Firms will also be required to publish a monthly compliance report to disclose the number of requests they received and what actions they took. They will also be required to offer a voluntary option to users who wish to verify their accounts.

The guidelines, which replace the law from 2011, go into effect for small firms effective immediately, but bigger services will be provided three months to comply, said Prasad.

New Delhi has put together these guidelines because citizens in India have long requested a “mechanism to address grievances,” said Prasad. India has been working on a law aimed at intermediaries since 2018. You can read the final version of the draft here, courtesy of New Delhi-based advocacy group Internet Freedom Foundation.

“India is the world’s largest open Internet society and the Government welcomes social media companies to operate in India, do business and also earn profits. However, they will have to be accountable to the Constitution and laws of India,” he said, adding that WhatsApp had amassed 530 million users, YouTube, 448 million users, Facebook’s marquee service 410 million users, Instagram 210 million users, and Twitter, 175 million users in the country.

Full guidelines for social media firms and other intermediaries. (Source: Indian government.)

For streaming platforms, the rules have outlined a three-tier structure for “observance and adherence to the code.” Until now, on-demand services such as Netflix, Disney+ Hotstar, and MX Player have operated in India with little to no censorship.

New Delhi last year said India’s broadcasting ministry, which regulates content on TV, will also be overseeing digital streaming platforms. 17 popular streaming firms including international giants had banded together to devise a self-regulation code. Prakash Javedkar, Minister of Information and Broadcasting, said in the conference that the proposed solution from the industry wasn’t adequate and there will be an oversight mechanism from the government to ensure full compliance with the code.

Streaming services will also have to attach a content ratings to their titles. “The OTT platforms, called as the publishers of online curated content in the rules, would self-classify the content into five age based categories- U (Universal), U/A 7+, U/A 13+, U/A 16+, and A (Adult). Platforms would be required to implement parental locks for content classified as U/A 13+ or higher, and reliable age verification mechanisms for content classified as “A”,” the Indian government said.

“The publisher of online curated content shall prominently display the classification rating specific to each content or programme together with a content descriptor informing the user about the nature of the content, and advising on viewer description (if applicable) at the beginning of every programme enabling the user to make an informed decision, prior to watching the programme.”

The new rules will also force digital news outlets to disclose the size of their reach and structure of their ownership.

Industry executives have expressed concerns over the new proposed regulation, saying New Delhi hasn’t consulted them for these changes. IAMAI, a powerful industry body that represents nearly all on-demand streaming services, said it was “dismayed” by the guidelines, and hoped to have a dialogue with the government.

Javedkar and Prasad were asked if there will be any consultation with the industry before these guidelines become law. The ministers said that they had already received enough inputs from the industry.

This is a developing story. Check back for more information…



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YouTube to launch parental control features for families with tweens and teens

YouTube announced this morning it will soon introduce a new experience designed for teens and tweens who are now too old for the schoolager-focused YouTube Kids app, but who may not be ready to explore all of YouTube. The company says it’s preparing to launch a beta test of new features that will give parents the ability to grant kids more limited access to YouTube through a “supervised” Google Account. This setup will restrict what tweens and teens can watch on the platform, as well as what they can do — like create videos or leave comments, for example.

Many parents may have already set up a supervised Google Account for their child through Google’s Family Link parental control app. This app allows parents to restrict access across a range of products and services, control screen time, filter websites and more. Other parents may have created a supervised Google Account for their child when they first set up the child’s account on a new Android device or Chromebook.

If not, parents can take a few minutes to create the child’s supervised account when they’re ready to begin testing the new features. (Unfortunately, Google Edu accounts — like those kids now use for online school — aren’t supported at launch.)

The new features will allow parents to select between three different levels of YouTube access for their tween or teen. Initially, YouTube will test the features with parents with children under the age of consent for online services — age 13 in the U.S., but different in other countries — before expanding to older groups.

Image Credits: YouTube

For tweens who have more recently graduated out of the YouTube Kids app, an “Explore” mode will allow them to view a broad range of videos generally suited for viewers age 9 and up — including vlogs, tutorials, gaming videos, music clips, news, and educational content. This would allow the kids to watch things like their favorite gaming streamer with kid-friendly content, but would prevent them (in theory) from finding their way over to more sensitive content.

The next step up is an “Explore More” mode, where videos are generally suitable for kids 13 and up — like a PG-13 version of YouTube. This expands the set of videos kids can access and allows them access to live streams in the same categories as “Explore.”

For older teens, there is the “Most of YouTube” mode, which includes almost all YouTube videos except those that include age-restricted content that isn’t appropriate for viewers under 18.

Image Credits: YouTube

YouTube says it will use a combination of user input, machine learning, and human review to curate which videos are included in each of the three different content settings.

Of course, much like YouTube Kids, that means this will not be a perfect system — it’s a heavily machine-automated attempt at curation where users will still have to flag videos that were improperly filtered. In other words, helicopter parents who closely supervise their child’s access to internet content will probably still want to use some other system — like a third-party parental control solution, perhaps — to lock down YouTube further.

The supervised access to YouTube comes with other restrictions, as well, the company says.

Parents will be able to manage the child’s watch and search history from within the child’s account settings. And certain features on YouTube will be disabled, depending on the level of access the child has.

For example, YouTube will disable in-app purchases, video creation, and commenting features at launch. The company says that, over time, it wants to work with parents to add some of these features back through some sort of parent-controlled approach.

Also key is that personalized ads won’t be served on supervised experiences, even if that content isn’t designated as “made for kids” — which would normally allow for personalized ads to run. Instead, all ads will be contextual, as they are on YouTube Kids. In addition, all ads will have to comply with kids advertising policies, YouTube’s general ad policies, and will be subject to the same category and ad content restrictions as on Made for Kids content.

That said, when parents establish the supervised account for their child, they’ll be providing consent for COPPA compliance — the U.S. children’s privacy law that requires parents to be notified and agree to the collection and use personal data from the kids’ account. So there’s a trade-off here.

However, the new experience may still make sense for families where kids have outgrown apps designed for younger children — or even in some cases, for younger kids who covet their big brother or sister’s version of “real YouTube.” Plus, at some point, forcing an older child to use the “Kids” app makes them feel like they’re behind their peers, too. And since not all parents use the YouTube Kids app or parental controls, there’s always the complaint that “everyone else has it, so why can’t I?” (It never ends.)

Image Credits: YouTube Kids app

This slightly more locked down experience lets parents give the child access to “real YouTube” with restrictions on what that actually means, in terms of content and features.

YouTube, in an announcement, shared several endorsements for the new product from a few individual youth experts, including Leslie Boggs, president of National PTA; Dr. Yalda Uhls, Center for Scholars & Storytellers, UCLA – Author of Media Moms & Digital Dads; Thiago Tavares, Founder and President of SaferNet Brazil; and Professor Sun Sun Lim, Singapore University of Technology & Design – Author of Transcendent Parenting.

YouTube’s news, notably, follows several product updates from fast-growing social video app and YouTube rival TikTok, which has rolled out a number of features aimed at better protecting its younger users.

The company in April 2020 launched a “family pairing” mode that lets a parent link their child’s account to their own in order to also lock down what the child can do and what content they can see. (TikTok offers a curated experience for the under-13 crowd called Restricted Mode, which can be switched on here, too.) And in January of this year, TikTok changed the privacy setting defaults for users under 18 to more proactively restrict what they do on the app.

YouTube says its new product will launch in beta in the “coming months” in over 80 countries worldwide. It also notes that it will continue to invest in YouTube Kids for parents with younger children.



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Daily Crunch: Facebook brings news sharing back to Australia

The Facebook-Australia news battle seems to have reached an end, Android gets an update and Lucid Motors is going public via SPAC. This is your Daily Crunch for February 23, 2021.

The big story: Facebook brings news sharing back to Australia

Last week, Facebook responded to the Australian government’s proposed law requiring internet platforms to strike revenue-sharing agreements with news publishers by blocking news sharing and viewing for users in the country. But with the government amending the law, Facebook said it will restore news sharing in the “coming days.”

Among other things, the amendments call for a two-month mediation period before Facebook is forced into arbitration with publishers, and it also says the government will consider commercial agreements that the platforms have made with local publishers before deciding whether the law applies to them.

William Easton, Facebook’s managing director for Australia and New Zealand, said in a statement that the amendments address “core concerns about allowing commercial deals that recognize the value our platform provides to publishers relative to the value we receive from them.”

The tech giants

Android’s latest update will let you schedule texts, secure your passwords and more — This update will integrate a feature called Password Checkup to alert you to passwords you’re using that have been previously exposed.

Twitter relaunches test that asks users to revise harmful replies — Twitter is running a new test that will ask users to pause and think before they tweet.

Area 120 is beginning to use Google’s massive reach to scale HTML5 GameSnacks platform — GameSnacks is an HTML5 gaming platform where titles are bite-sized and load much faster.

Startups, funding and venture capital

Lucid Motors strikes SPAC deal to go public with $24B valuation — This will be the largest deal yet between a blank-check company and an electric vehicle startup.

Shippo raises $45M more at $495M valuation as e-commerce booms — The startup provides shipping-related services to e-commerce companies.

Reddit ups Series E round by another $116M — Reddit had already announced a $250 million Series E earlier this month.

Advice and analysis from Extra Crunch

How to overcome the challenges of switching to usage-based pricing — The usage-based pricing model almost feels like a cheat code, according to OpenView’s Kyle Poyar.

Oscar Health’s initial IPO price is so high, it makes me want to swear — Alex Wilhelm doesn’t mince words: “Public investors have lost their damn minds.”

RIBS: The messaging framework for every company and product — The test is designed to tell you if your story is memorable, so you can turn it into a compelling message.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Everything else

Announcing the complete agenda for TC Sessions: Justice — Our second-ever dedicated event to diversity, equity, inclusion and labor in tech is coming up on March 3.

Six Miami-based investors share their views on the region’s startup scene — Investors see a huge opportunity for the region to become a major startup hub by utilizing its diverse workforce and wonderful quality of life.

SolarWinds hackers targeted NASA, Federal Aviation Administration networks — Hackers are said to have broken into the networks of U.S. space agency NASA and the Federal Aviation Administration as part of a wider espionage campaign.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.



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Quill, the messaging app backed by Index, quietly comes out of stealth to take on Slack

Slack took the workplace communications landscape by storm after it launched its integration-friendly, GIF-tastic chat platform in 2013. Within the space of a decade it entered into the pantheon of big tech: first with massive growth and usage, then a series of giant VC rounds and valuations, spawning controversial competition from incumbents, followed by a public listing and ultimately a $27.7 billion acquisition by Salesforce. Now that the cycle is complete, the decks are clear for a Slack disruptor!

Today, a new app quietly launched out of stealth called Quill, available by way of apps for the web, MacOS, Windows, Linux, Android and iOS.

Like Slack, Quill is a messaging app for co-workers to update each other on what they are doing, have conversations about projects and more.

Unlike Slack — the implication seems to be — the difference is that Quill is about delivering messaging in a non-distracting way that doesn’t take up too much of your time, your concentration, and your energy. Quill bills itself as “messaging for people that focus.”

So while you get a lot of the same features you have in Slack for chatting with workers, creating channels, integrating other apps, and having video and voice conversations — one of my colleagues quipped, “It looks like Slack, but more colorful!” — it also includes a bunch of features that put the focus on, well, focus.

“We grew exhausted having to skim thousands of messages every day to keep up, so we built a way to chat that’s even better than how we already communicate in person,” Quill notes on its website. “A more deliberate way to chat. That’s what Quill is all about.”

For example, “structured channels” let you enforce threads in a channel for different conversations rather than view chatter in a waterfall. Automatic sorting in the app moves up active conversations you’re in above others. Limitations on notifications mean you can have more nuance in what ultimately might end up distracting you, and senders for example can alter a setting (with a !!) to notify you if something is critical and needs to ping you. Video chats come automatically with a sidebar to continue texting, too.

Then, you get separate channels for social and non-work chat; and a series of features that let you manipulate conversations after they’ve already started: you can recast conversations into threads after they’ve already started and you have a fast way to reply to messages. There is an easier and more obvious way to pin important things to the tops of channels; and in addition to creating new threads after a conversation starts, you can also move messages from one channel or thread to another.

You can also interact with Quill chats using SMS and email, and like Slack, it offers the ability to integrate other app notifications into the process.

It’s also working on adding a Clubhouse-like feature for voice channels, end-to-end encryption, context-based search (it already has keyword search), and user profiles.

Managing “high load”

The app has been in stealth mode for nearly three years, and while some projects might never go noticed in that time, this one is a little different because of the pedigree and the context.

For starters, Quill was founded by the former creative director of Stripe, Ludwig Pettersson, who was given a lot of the credit for the simplicity and focus of the payment company’s flagship product and platform (simplicity that became the hallmark of the service and helped it balloon into a commerce behemoth).

His involvement signaled that the effort might get at least a little attention. In a landscape that seemed to be all but dominated by Slack and a few huge, well-funded rivals in the form of Microsoft and Facebook, it’s notable that when Quill was just an idea, it had already picked up $2 million in seed funding, from Sam Altman (at the time the head of Y Combinator) and General Catalyst.

Following that it raised a Series A of $12.5 million led by Sarah Cannon of Index Ventures, totaling some $14.5 million in funding in all. The Series A valued the company at $62.5 million, as we reported at the time.

Added to this is the story behind Quill and what brought Pettersson and others on his team to the idea of building it. From what we understand, the idea in its earliest inception was to capture something of the magic of communication that you get from messaging apps, and specifically from workplace communication tools like Slack, but without the distraction and resulting frustration that often come along with them.

By 2018, Slack was already a big product, valued at over $7 billion and attracting millions of users. But there was also a growing number of people criticizing it for being the opposite of productive. “It’s hard to track everything that’s going on in Slack, it can be distracting. Given the network effect, Slack has become powerful, but it was not designed as a high-load system,” Sam Altman, the investor and former head of both Y-Combinator and OpenAI, said to me back in 2018 when I asked him what he knew about Quill after I first got wind of it.

He said he was “super impressed” by Ludwig’s work at Stripe, and then OpenAI (where he stayed for a year after leaving Stripe), so much so that when Ludwig suggested building “a better version of Slack,” it seemed like a “credible idea” and one worth backing even without a product yet to be built.

It’s quite fitting that for an app focused on focus, Quill launched today quietly and without much fanfare: why worry about PR distraction when you can just get something out there?

In any case, we’re hoping to hear more and see what kind of momentum it picks up. We’ve asked Index if we can talk to Sarah Cannon about the investment, and we are still waiting to hear back. We are also trying to see if we can talk to Pettersson. But I should mention we have been trying to talk to him since first getting wind of this app back in August of 2018, so we’re not holding our breath (nor this story).



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Reddit ups Series E round by another $116 million

Reddit, which announced a $250 million Series E earlier this month, has added over $116 million to the financing event, upping the round’s most recent total to $367 million, according to a new SEC filing. The document shows that Reddit is aiming to raise up to $500 million in this capital raise.

A Reddit spokesperson confirmed the news, saying that the new capital is from ”new and existing investors.” They offered no specifics on names. The spokesperson did confirm that the new capital did not come with a new valuation, keeping the platform at its previously-announced valuation of $6 billion pre-money.

Reddit is a 16-year-old company with over $800 million in known venture funding. It has been in the spotlight for the past few months, with co-founder Alexis Ohanian resigning over moderation concerns, to, more recently, its role in the Election and the meteoric rise of GameStop’s stock due to the subreddit r/WallStreetBets.



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Facebook to restore news sharing in Australia after government amends proposed law

Facebook said it will begin restoring news sharing to Australian users’ feeds in “the coming days” after reaching an agreement with the country’s government. The social media giant made the drastic move of restricting news content in Australia last Wednesday after a dispute over a proposed media bargaining code that is expected to be voted into law soon. The code requires Facebook, and other major tech companies like Google, to make revenue-sharing agreements with publishers for content posted to their social media platforms.

Australian treasurer Josh Frydenberg said changes have been made to the code to “provide further clarity to digital platforms and news media businesses about the way the Code is intended to operate and strengthen the framework for ensuring news media businesses are fairly remunerated,” reported Seven News.

The amendments mean the code now includes a two-month mediation period to allow digital platforms like Facebook and publishers to agree on deals before they are forced to enter into arbitration. The Australian government will also consider commercial agreements tech platforms have already made with local publishers before deciding if the code applies to them, and give them one month’s notice before reaching a final decision.

William Easton, managing director of Facebook Australia and New Zealand, said in a statement that the company was “satisfied” with the changes, adding that they addressed Facebook’s “core concerns about allowing commercial deals that recognize the value our platform provides to publishers relative to the value we receive from them.”

Facebook’s restrictions last week meant Australian publishers were restricted from sharing or posting content from Facebook Pages, and users in Australia were unable to view or share Australian or international news content.

The Australian government announced in April 2020 it would adopt a mandatory code ordering Google, Facebook and other tech giants to pay local media for reusing their content, after an earlier attempt to create a voluntary code with the companies stalled.

As it lobbied against the proposed law, Facebook first threatened to restrict the public sharing of news content in Australia last September. Google also claimed that user experience in Australia would suffer and suggested it may no longer be able to offer free services in the country.



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Twitter relaunches test that asks users to revise harmful replies

Twitter is running a new test that will ask users to pause and think before they tweet. According to the company’s announcement, when Twitter detects what appears to be a potentially harmful or offensive reply to someone else’s tweet, it will prompt you to consider revising your text instead of tweeting.

Users whose tweets are flagged in this way will see a pop-up message appear on their screen, which asks, “Want to review this before Tweeting?” There are three buttons to then choose from: one to tweet the reply anyway, an Edit button (this is as close as we’ll get, apparently), and a delete button to discard the tweet entirely. There is also a small link to report if the system got things wrong.

This is not the first time Twitter has run a test like this.

In May 2020 and again in August 2020, Twitter ran variations on this same experiment. In those cases, the text on the pop-up screen was largely the same, but the layout of the three buttons looked different and were less colorful.

The earlier tests ran on Android, iOS and web, but this current iteration is only on iOS, for the time being.

At the time of the initial test, Twitter explained its systems were able to detect harmful language based on the kind of language that had been used in other tweets that had been reported in the past.

It’s been shown that these sorts of built-in small nudges can have an impact.

For example, when Twitter began prompting users to read the article linked in a tweet before retweeting it, the company found that users would open the articles 40% more often than without the nudge. Twitter has also built similar experiments to try to slow down the pace of online conversation on its platform, by doing things like discouraging retweets without commentary or slow down “Likes” on tweets containing misinformation.

Other social networks use small nudges like this, too, to influence their users’ behavior. Instagram back in 2019 launched a feature that would flag potentially offensive comments before they were posted, and later expanded this to captions. TikTok more recently launched a banner that would ask users if they were sure they wanted to share a video that contains “unverified content.”

It’s unclear why Twitter hasn’t simply rolled out the pop-up to combat online abuse — still a serious issue on its platform — and then iterated on the design and style of the message box, as needed.

Compared with the much larger engineering and design efforts the company has had underway — including its newer Stories feature known as Fleets and a Clubhouse rival called Spaces — a box asking users to pause and think seems like something that could have graduated to a full product by now.



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Maple launches with $3.5 million in funding to become the SaaS backoffice for the family

Much of our daily lives have been transformed in one way or another by technology – and often through intentional efforts to innovate thanks to the advent of new technology. Now more than ever, we rely on shared collaboration platforms and digital workspaces in our professional lives, and yet most of the changes wrought by tech on our home and family lives seem like the accidental effects of broader trends, rather than intentional shifts. Maple, a new startup launching today, aims to change that.

Founded by former Shopify product director and Kit (which was acquired by Shopify in 2016) co-founder Michael Perry, Maple is billed as “the family tech platform,” and hopes to ease the burden of parenting, freeing up parents, aunts, uncles, grandparents and kids to spend more quality time together. The startup, which is launching its app on iPhone and Android for all and onboarding new users from its waitlist over the next few weeks, has raised $3.5 million in seed funding – an impressive round for a company just about seven months into its existence. The round was led by Inspired Capital, and includes participation by Box Group, but is also supported by a number of angels who were Perry’s former colleagues at Shopify, including Shopify President Harley Finkelstein.

Perry and his co-founder Mike Taylor, who also co-founded Kit, decided to leave Shopify in order to pursue Perry’s vision of a platform that can help parents better manage their family lives – a platform made up of a social layer, a task-focused list of shared responsibilities, and a bourgeoning service marketplace that looks and feels a lot like the ecosystem Shopify has built for empowering e-commerce entrepreneurs. That’s by design, Perry says.

“I think you’re gonna see a lot of Shopify inspiration in this product – we think we’re the back office of every family,” Perry told me in an interview. “And we think we’re building the app ecosystem of apps, services, all kinds of things that are going to live on this platform that’s going to revolutionize parenting.”

In its current early incarnation, Maple’s primary interface for parents is a list of various tasks they need to take care of during the day. During onboarding, Maple asks parents what they’re typically responsible for in the household, and then uses some basic machine learning behind the scenes to build a customized schedule for getting those things done. Maple has signed on three initial partners to assist with accomplishing some of these tasks, including Evelyn Rusli’s Yumi food and nutrition brand for infants; Lalo, a DTC baby and toddler furniture and gear brand; and Haus, which will be providing date night packages for parents to enjoy for some getaway time.

Maple co-founder Micheal Perry with his son.

The platform will offer users the ability to tap others for help with tasks – these could be other family members added to the household, or the partners mentioned above (the plan is to bring on more, but to gate admittance initially while developing API endpoints that any company can potentially tap into). When interacting with family members, Maple also encourages smalls social interactions, like thanking someone for their help on a particular task or just showing general appreciation. Perry says this is a key ingredient he prioritized in product design.

“We have this cool thing that every day at eight o’clock, we give you an end of the day recap with your family,” Perry said. “So you click on it, and it will show me that, for example, Alex [Perry’s wife] completed three responsibilities for our family today, and how many I did for my family today, and how much help I received from other people today. And directly in app, you can send these cool little ‘Thank you ‘messages and say, you know, I love you, I appreciate you – we’re a great team. And Alex will get those messages. We believe in a world where this can be incredibly dynamic, in many different ways kto kind of bring some love and appreciation and make parenting feel more rewarding and easier.”

Perry is quick to note that what Maple offers today is only the beginning, and it’s clear he has bold ambitions for the platform. He talked about building “the family graph,” or a trove of data that can be used to not only build intelligent recommendations and develop ever more advanced machine learning to optimize family management, but also to provide partners with the tools they need to build products to best serve families. I asked Perry what that means for privacy, given that people are likely to be far more reluctant to share info around their families than they are about their work lives. He said the they team plans to go slow in terms of what it exposes to partners, when, and how, and that they’ll have user privacy in mind at each step – since, after all, Perry himself is a father and a husband and is wary of any incursions on his own private life.

For now, partners like Yumi only receive what users share with them through their own account creation and login mechanism, and they only pass back a basic attribution token – essentially letting Maple know the task was completed so it can mark it off in a user’s list.

Image Credits: Maple

Maple’s partners today are representative of the kind of businesses that might make use of the platform in future, but Perry has a much broader vision. He hopes that Maple can ultimately help parents handle their responsibilities across a wide range of needs and income levels. Right now, Perry points out, a lot of what’s available to parents in terms of support is only available to higher income brackets – ie., nannies and dedicated caregivers. Perry says that his experience growing up relatively poor with a single mother supporting the entire family led him to want to provide something better.

“You have 125 million households in America, you have 3 million children being born every year, you have 30% of the households in America being single parent-run households,” Perry said. “It’s hard. Some people are working one two jobs, most couples are working couples. Every industry that’s changed has been about making things more accessible. In the case of Shopify, at one point building, an online store required hundreds of thousands of dollars and a bunch of skilled people. Now you can start a store for $20 in five minutes – 20 years ago, that was unfathomable.”

For Perry, Maple represents a path to that kind of shift in the economics of parenting and a network of family services, including goods, care, leisure and more. The startup has plans to eventually enlist other parents to provide services, which Perry says will unlock part-time income generation for full-time parents, allowing parents to help each other at the same time.

I asked him if he thought people would be reluctant to treat their family lives with the same kind of optimization approach favored by enterprise and commercial platform tools, but he suggested that in fact, not taking advantage of those same technologies in our personal lives is a missed opportunity.

“We believe that, uniquely, we’re living through a generation where we can start creating more time for people,” Perry said. “I think what makes Maple so unique is that no company has approached this by asking ‘How do we create more time for you so that you can spend more time with your kids?’ in the consolidated way that we have.”

Disclosure: I worked at Shopify from 2018 to 2019 while Perry was employed there, but we did not work together directly.



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