Wednesday, 24 July 2019

What lower Netflix pricing tells us about competing in India

At a conference in New Delhi early last year, Netflix CEO Reed Hastings was confronted with a question that his company has been asked many times over the years. Would he consider lowering the subscription cost in India?

It’s a tactic that most Silicon Valley companies have adapted to in the country over the years. Uber rides aren’t as costly in India as they are elsewhere. Spotify and Apple Music cost less than $2 per month to users in the country. YouTube Premium, LinkedIn Premium and many of Microsoft’s services, as well as subscriptions to U.S. news outlets such as WSJ and New York Times are also priced significantly lower compared to the prices they charge in their home turf.

Hastings had also come prepared: He acknowledged that the entertainment viewing industry in India is very different from other parts of the world. To be sure, much of the pay-TV in India is supported by ads and the access fee remains too low ($5). But that was not going to change how Netflix likes to roll, he said.

“We want to be sensitive to great stories and to fund those great stories by investing in local content,” he said. “So yes, our strategy is to build up the local content — and of course we have got the global content — and try to uplevel the industry,” he said, identifying movie-goers who spend about Rs 500 ($7.25) or more on tickets each month as Netflix’s potential customers.

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Indian commuters walking below a poster of “Sacred Games”, an original show produced by Netflix (Image: INDRANIL MUKHERJEE/AFP/Getty Images)

Less than a year and a half later, Netflix has had a change of heart. The company today rolled out a lower-priced subscription plan in India, a first for the company. The monthly plan, which restricts usage of the service to mobile devices only, is priced at Rs 199 ($2.8) — a third of the least expensive plan in the U.S.

At a press conference in New Delhi today, Netflix executives said that the lower-priced subscription tier is aimed at expanding the reach of its service in the country. “We want to really broaden the audience for Netflix, want to make it more accessible, and we knew just how mobile-centric India has been,” said Ajay Arora, Director of Product Innovation at Netflix.

The move comes at a time when Netflix has raised its subscription prices in the U.S. by up to 18% and in the UK by up to 20%.

Netflix’s strategy shift in India illustrates a bigger challenge that Silicon Valley companies have been facing in the country for years. If you want to succeed in the country, either make most of your revenue from ads, or heavily subsidize your costs.

But whether finding users in India is a success is also debatable.



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Tile finds another $45M to expand its item-tracking devices and platform

Tile — the company that makes popular small square-shaped tags and other technology to help people keep track of physical belongings like keys and bags — has made more recent moves to link up with chipmakers, helping it expand to wireless headsets and other electronic and other connected items as part of a wider smart home strategy. Now, Tile is announcing a round of funding of $45 million to double down on those strategies and fulfil a plan to have its technology in millions of devices by the end of this year.

The growth equity is being led by Francisco Partners, with participation from previous investors GGV Capital and Bessemer Venture Partners and new backers Bryant Stibel and SVB Financial Group.

CJ Prober — who joined as CEO last year in part to develop Tile’s newer areas of business — said in an interview that the funding will help the startup be more aggressive in doubling down on these new opportunities.

“We’re seeing great business momentum, with the first embedded partner products from our strategic initiatives coming out this year,” he said. It now has partnerships with five semiconductor companies, including Qualcomm and most recently Nordic, which they integrate Tile functionality on to their hardware, he added. “All this is now paying off with great momentum.”

Prober would not comment on the company’s valuation with this round except to say that it was definitely an upround. It’s notable that this appears to be only the first close for the Series C, which has “opened” with this $45 million commitment, in the words of a spokesperson for the company.

Tile has declined to specify any more detail on this front, but this is pretty standard procedure, and the startup has previously raised its rounds in stages — as you can see by this timeline in PitchBook. For some more context, Tile’s last noted valuation (also in PitchBook) was around $166 million, but that was now more than two years ago, before the various initiatives and other changes at the company.

Tile is not disclosing any metrics on its market share or how many of its devices are now in use, but it typically is rated as the largest of a crowded market for item-tracking devices (with others in the space including TrackR (Adero), Chipolo, and more).

But it notes that its European business (a relatively new area of focus for Tile) has grown by 160% in the last quarter. That’s coming from a small base, though: Prober confirmed that the US is still by far its biggest market in terms of sales and users.

And it also had a strong Prime Day on Amazon this year, doubling its unit sales (but didn’t provide hard numbers for comparison). It said it has exceeded projections for sign-ups for its Premium tier, which provides free battery replacements, 30-day location history, smart alerts (prompting you for example when you’ve left your keys somewhere), customer support and more for $30 for the year or $3 per month.

The company has been planting a lot of seeds, and some of them have yet to sprout. Last year, Tile announced that it would take an investment from Comcast to help it develop new products for its wider connected consumer strategy.

Prober however described this as still in the “roadmapping phase” and would not get into specifics except to say that there are a number of different initiatives in the works. There is also a partnership with Google unveiled at the most recent I/O that will see its home devices also being able to be tracked by the Tile platform.

I asked Prober if he worries ultimately about whether large tech companies like Apple, Amazon, Google and the rest — which all want to “own” connected home customers and the ecosystem of hardware and services that they may use — are seen as opportunities or threats for Tile, given that it’s piggy backing on their platforms and devices. His and the company’s fundamental feeling — one that should be supported in the spirit of competition and consumer choice — is that having a cross-platform option is the way to go.

“Our customers have different devices, products from different companies and it’s our job to ensure that Tile works well across all of those,” he said. “We see ourselves a little bit like Switzerland, which is also something that our customers and partners appreciate.”

While we’re seeing a surge of new communications technologies and protocols — 5G being perhaps the one we are hearing about most at the moment — Tile is sticking for now to Bluetooth.

“We love what Bluetooth enables for our customers in terms of the form factor, the cost and profile of the device and the power consumption,” said Prober. “We’re constantly evaluating different alternatives, and if there is an alternative we would consider that, but in our view that doesn’t exist right now.”

It’s a choice that its investors are also supporting.

“Tile pioneered the smart location category,” said Andrew Kowal, partner with Francisco Partners, in a statement. “With Bluetooth technology projected to be included in nearly 30 billion devices shipping in the next five years, Tile is poised to deliver an embedded finding solution for a rapidly expanding market. We are extremely excited to be partnering with Tile as the company enters the next chapter of its growth story.”



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Tuesday, 23 July 2019

TD Ameritrade is bringing customers’ financial portfolios into the car

TD Ameritrade has integrated with in-vehicle software platforms Apple CarPlay, Android Auto and Amazon’s Echo Auto to give customers the ability to check their stock portfolio or get the latest financial news while sitting behind the wheel.

TD Ameritrade launched the suite of in-vehicle experiences this week, the latest move by the company to place investors just a voice command or click away from a stock price or other financial information.

TD Ameritrade Chief Information Officer Vijay Sankaran called this a “natural next step” and another way the company is “using complex technology to weave investing seamlessly into our daily lives.”

For now, customers won’t be able to make trades within the vehicle. Although that might be another “natural next step,” considering the trajectory of TD Ameritrade. Customers already can trade over the phone, via a desktop computer or mobile app and, more recently, through Amazon Alexa-enabled devices.

Instead, the features will depend on which in-vehicle software platform a customer is using. For those with Apple CarPlay, customers can keep track of real-time market news with a new TDAN Radio app from the TD Ameritrade Network. The network will broadcast news live via audio streaming optimized for CarPlay.

Drivers using the Android Auto and Echo Auto platforms have the option to use voice commands to unlock market performance summaries and sector updates, hear real-time quotes and check account balances and portfolio performance.

“In a connected world like ours, we have to meet investors where they are, whether at home, in the office, or on the go,” Sunayna Tuteja, head of strategic partnerships and emerging technologies at TD Ameritrade said in a statement. “In-vehicle technology offers a new type of connectivity that further breaks down barriers to accessing financial education and markets.”



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TD Ameritrade is bringing customers’ financial portfolios into the car

TD Ameritrade has integrated with in-vehicle software platforms Apple CarPlay, Android Auto and Amazon’s Echo Auto to give customers the ability to check their stock portfolio or get the latest financial news while sitting behind the wheel.

TD Ameritrade launched the suite of in-vehicle experiences this week, the latest move by the company to place investors just a voice command or click away from a stock price or other financial information.

TD Ameritrade Chief Information Officer Vijay Sankaran called this a “natural next step” and another way the company is “using complex technology to weave investing seamlessly into our daily lives.”

For now, customers won’t be able to make trades within the vehicle. Although that might be another “natural next step,” considering the trajectory of TD Ameritrade. Customers already can trade over the phone, via a desktop computer or mobile app and, more recently, through Amazon Alexa-enabled devices.

Instead, the features will depend on which in-vehicle software platform a customer is using. For those with Apple CarPlay, customers can keep track of real-time market news with a new TDAN Radio app from the TD Ameritrade Network. The network will broadcast news live via audio streaming optimized for CarPlay.

Drivers using the Android Auto and Echo Auto platforms have the option to use voice commands to unlock market performance summaries and sector updates, hear real-time quotes and check account balances and portfolio performance.

“In a connected world like ours, we have to meet investors where they are, whether at home, in the office, or on the go,” Sunayna Tuteja, head of strategic partnerships and emerging technologies at TD Ameritrade said in a statement. “In-vehicle technology offers a new type of connectivity that further breaks down barriers to accessing financial education and markets.”



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Daily Crunch: Apple in talks to buy Intel modem biz

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 9am Pacific, you can subscribe here.

1. Apple reportedly in talks to acquire Intel’s modem business for $1B+

Apple is in “advanced talks” to buy Intel’s smartphone modem business for “$1 billion or more,” according to a new report in The Wall Street Journal.

This deal could potentially bring Apple hundreds of engineers and key patents, and that could allow the company to build out some of the technologies it’s currently licensing from Qualcomm.

2. Bird is raising a Series D round led by Sequoia at $2.5 billion valuation

Sequoia Capital previously led Bird’s $300 million Series C round back in June, with Roelof Botha joining Bird’s board at the time. Sequoia declined to comment on the round, but Botha did say the Bird team “exemplifies grit.” (So, not exactly a denial.)

3. Pinterest launches wellness activities to help users cope with stress, anxiety

The option to engage with the new activities — like deep breathing and self-compassion exercises — pops up when a Pinterest user searches for “stress quotes,” “work anxiety” or other terms that indicate they might be feeling down.

4. Facebook fails to keep Messenger Kids’ safety promise

The Verge obtained messages sent by Facebook informing parents that the company has found “a technical error.” This error allows a child’s friend to create a group chat with them that also included contacts who hadn’t been approved by their parent — which is exactly what Messenger Kids was supposed to prevent.

5. It looks like TikTok has acquired Jukedeck, a pioneering music AI UK startup

The startup — which won our Startup Battlefield in London — was building technology to do things like interpret a video and automatically set music to it.

6. Mixhalo raises $10.7M to bring better sound quality to live events

The company’s initial goal was to bring better sound quality to concerts. Instead of hearing music blasted out of speakers, users can connect their smartphone to a Mixhalo network — then, through their earbuds, they’ll hear the same sound mix that the musicians receive through their in-ear monitors.

7. Announcing the agenda for TC Sessions: Enterprise

The agenda for TC Sessions: Enterprise has just been announced, featuring enterprise powerhouses like Bill McDermott (SAP), Scott Farquhar (Atlassian), Andrew Ng (Landing AI), Julie Larson-Green (Qualtrics), Wendy Nather (Duo Security), Aaron Levie (Box) and Jason Green (Emergence). The event will take place on September 5 in San Francisco.



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As tech giants face Congressional investigation, states must step up regulatory oversight too

Congress has begun investigations into the power wielded by tech giants Amazon, Apple, Facebook, and Google – from their effect on the news media, to their impact on retail markets, to their handling of data. Unusual for these divided times, the concerns are bipartisan, with members of both parties suggesting that new legislation and regulation may be needed.

A number of big challenges are hurting consumers, including “serious breaches of privacy” and “loss of control of data,” Rep. David Cicilline, D-R.I., chairman of the House Antitrust Subcommittee, told CNBC.

This discussion of what Cicilline has called a “monopoly moment” is healthy and overdue. However, while Congress examines whether we should trust the tech titans with so much of our data and other assets, it would be great to see more urgency on another question: Can we trust the government itself with our data?

Federal and state government databases hold a treasure trove of sensitive, personal information that is used to collect taxes, administer benefits, register vehicles, or run elections. Not to mention the 434.2 million phone records on Americans that the National Security Agency collected last year, according to a government report.

Hackers, naturally, know that government sites are a rich target, and some of the largest cybersecurity breaches of recent years have taken place in the public sector.

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WASHINGTON, DC – MARCH 24: A Department of Justice employee put up a poster of the seven indicted hackers prior to a news conference for announcing a law enforcement action March 24, 2016 in Washington, DC. A grand jury in the Southern District of New York has indicted seven Iranian who were employed by two Iran-based computer companies that performed work on behalf of the Iranian Government, on computer hacking charges related to their involvement in an extensive campaign of over 176 days of distributed denial of service (DDoS) attacks. (Photo by Alex Wong/Getty Images)

In two separate incidents in June 2015, the U.S. Office of Personnel Management discovered that attackers had stolen the Social Security numbers and other confidential information of 25.7 million current and former federal employees and contractors. The hackers’ haul even included 5.6 million fingerprints of job applicants who has undergone background investigations.

In 2016, the IRS said that 700,000 Social Security numbers were taken in a hack the year before.

In 2018, a “SamSam” ransomware attack shut down the city of Atlanta’s online systems, forcing the cancellation of court proceedings and preventing the collection of water bills and traffic fines. Last month, a ransomware assault has affected services in Baltimore and cost the city at least $18.2 million in lost or delayed revenue and direct restoration costs.

And then there are the foreign attempts to interfere with elections. U.S. officials have testified that Russian hackers targeted voting systems in 21 states in 2016, though no actual votes are believed to have been affected.

Since free and fair elections are a core tenet of our democracy, voter registration pages and election systems are the most sensitive areas of state and municipal web infrastructure. Election databases also contain personally identifiable information such as names, ages, and addresses. As my company’s experience with various state governments show, these systems are constantly under attack.

In fact, we’ve seen up to two-thirds of state election agencies’ website traffic consist of malicious bots searching for data to steal or scrape. Even more disturbingly, we have also seen spikes in automated traffic attacking the websites as registration deadlines approach. These spikes slow down the performance of back-end databases, compromising the agencies’ overall ability to effectively conduct elections.

This evidence shows that the existential threat to government data is every bit as important as the security and privacy concerns driving the congressional investigation of Amazon, Apple, Facebook, and Google. But is enough being done?

Voting booths in polling place. Image courtesy Getty Images

More than three years after the devastating attack on the U.S. Office of Personnel Management, a report by the General Accounting Office in November found that the agency had not implemented 29 of the 80 recommendations the government’s in-house auditor had made to shore up its cyber defenses.

In Atlanta, an audit determined that leading up to the ransomware attack, the city had ignored repeated warnings about flaws in its security posture, including a failure to address 1,500 to 2,000 severe vulnerabilities that the city’s Information Management and the Office of Information Security had identified.

Where control of data is concerned, it’s vital that the federal and state governments look themselves in the mirror just as hard as Congress is now assessing the tech giants. A few specific recommendations:

  • Government agencies at all levels should conduct an exhaustive review of their cyber security capabilities and hold leaders personally responsible for ensuring they are up to snuff for constantly evolving threats.
  • Beyond investigating the practices of a few companies, Congress also should focus energy on a long-overdue update of the Computer Fraud and Abuse Act, a 33-year-old law that makes it unlawful to break into a computer to access or alter information and, astoundingly, still serves as a legal guidepost in today’s new landscape of bots, malware, ransomware and other malicious attacks.
  • The Trump administration should make sure to follow through with its May 2 executive order on cyber defense that promised to “grow the cybersecurity capability of the United States Government, increase integration of the federal cybersecurity workforce, and strengthen the skills of federal information technology and cybersecurity practitioners.” It also called for a “cybersecurity rotational assignment program” within the federal government that “will serve as a mechanism for knowledge transfer and a development program for cybersecurity practitioners.”

An important discussion is happening on Capitol Hill about the influence of Amazon, Apple, Facebook, and Google in our lives and society. It would be hypocritical, however, to lose sight of how much of our data sits in government computer systems and that it also faces serious threat.



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Monday, 22 July 2019

Apple’s latest Tesla hire specializes in car interiors

Another high-level Tesla engineering executive has hopped over to Apple. Steve MacManus, who was vice president of engineering at Tesla, is now a senior director at Apple, according to an update on his LinkedIn profile.

Bloomberg was the first to report MacManus had taken the position at Apple. MacManus, whose was in charge of interior and exterior engineering, is the third Tesla executive to leave and take a position at Apple this year. He had been at Tesla since 2015.

His hiring follows two other high-profile moves from Tesla to Apple, including former chief engineer Doug Field and Michael Schwekutsch, who worked on drive systems at the electric automaker.

MacManus has a deep background in industrial design, specifically vehicle interiors and exteriors. Prior to Tesla, MacManus was chief engineer of body interior and exterior of trim and hardware at Aston Martin Lagonda. He was functional manager seating and restraints at Bentley Motors and also once worked at Jaguar Land Rover.

This latest hire, and the ones before, suggest that Apple’s Project Titan, the company’s not-so-secretive effort to build a self-driving car, might be in the midst of a revival. In January, news emerged that Apple had reassigned 200 employees previously involved in its development.

At the time, an Apple spokesperson said the company had an “incredibly talented team working on autonomous systems and associated technologies at Apple” and explained that some groups were being moved to projects in other parts of the company to support machine learning and other initiatives.

Apple could not be reached for comment. TechCrunch will update the article with any new information.



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