Thursday, 28 June 2018

India’s Times Internet buys popular video app MX Player for $140M to get into streaming – TechCrunch


Times Internet, the digital arm of Indian media firm Times Group, is getting into the digital content space, but not in the way you might think.

The company’s previous venture — an OTT called BoxTV.com — shut down in 2016 after an underwhelming four-year period. Now it is taking a radically different strategy by buying video playback app MX Player for Rs 1,000 crore, or around $140 million. The company didn’t disclose its stake but said it is a majority percentage.

The service originates from Korea but it has become hugely popular in India as a way to play media files, for example from an SD card, on a mobile device. It is a huge hit India, where the app claims 175 million monthly users — while the country accounts for 350 million of its 500 million downloads.

From here, Times Internet plans to introduce a streaming content service to MX Player users which Karan Bedi, MX Player CEO, expects to go live before August. The plan is to introduce at least 20 original shows and more 50,000 content across multiple local languages in India during the first year. The duo said the lion’s share of that investment money would go into developing content.

Bedi, a long-time media executive who took the job at MX Player eight months ago, said the service will be freemium and very much targeted at the idea of providing an alternative to television in India. He added that the deal had been in negotiation for the past year, which validates a January report from The Ken which first broke news of acquisition.

There are plenty of video streaming services in India. Beyond Netflix and Amazon Prime, Hotstar (from Rupert Murdoch-owned Star India) is making waves alongside Jio TV from Reliance Jio, but data from App Annie suggests MX Player is way out ahead. The analytics firm pegs MX Player at nearly 50 million daily users, as of June, well ahead of Hotstar (14.1 million), JioTV (7.4 million) and others.

Both Bedi and Times Internet MD Satyan Gajwani explained to TechCrunch in an interview that a big focus is differentiation and building a digital channel for India’s young since the average viewer demographics for MX player are hugely different to Indian TV audiences. Some 80 percent of the app’s users are aged under 35 (70 percent is aged under 25), while the gender balance is skewed more towards men.

“A lot of people aren’t happy with Indian TV,” Bedi said. “There are a lot is soaps and it is not focused on young people. [The MX PLayer audience] is exactly the opposite of the Indian tv demographic.”

That not only plays into growing a place for ‘millennial’ content, but it also means the streaming service may find success with advertisers if it can offer a gateway to young Indians. Beyond audience, there’s also flexibility. Gajwani explained further that unlike traditional TV and even YouTube, the Times Internet-MX Player service will offer different options for advertisers who “work with content creators to create stuff, sponsor a show, or find various different ways to reach scale.”

“India has a $6 billion TV ad market and we think this could unlock some of the money going to TV,” he said.

Times Internet MD Satyan Gajwani

“This audience on here is genuinely different, [rather than cord-cuttters] they’re almost cord-nevers,” Bedi added. “This is a big new audience that’s never been tapped by broadcasters.”

The idea is to gently introduce programming that is accessible to a large audience in India, who might not be open to paying, and then test other revenue models later.

“Further down the line, we might include subscriptions to scale,” Gajwani added. “Subscription is growing but it’s much much smaller today, what excites us is the idea we’ll have 100 million people streaming a show.”

MX Player might not be well known, but scale is one thing it certainly has in spades. The company just crossed 500 million downloads on Android, but Bedi pointed out that many are not counted because they are side-loaded, which doesn’t register with the Google Play Store.

All told, he said, the app picks up 1.2 million downloads per day with around 350,000 coming from the official Android app store, he said. Bedi said that, among other things, the app is typically distributed by smartphone vendors in tier-two and three Indian cities to help phone buyers get the essential apps for their device right away.

The question now is whether Times Internet can leverage that organic growth to build another business on top of the basic demand for video playback. This is certainly a unique approach.



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Microsoft launches two new Azure regions in China – TechCrunch


Microsoft today launched two new Azure regions in China. These new regions, China North 2 in Beijing and China East 2 in Shanghai, are now generally available and will complement the existing two regions Microsoft operates in the country (with the help of its local partner, 21Vianet).

As the first international cloud provider in China when it launched its first region there in 2014, Microsoft has seen rapid growth in the region and there is clearly demand for its services there. Unsurprisingly, many of Microsoft’s customers in China are other multinationals that are already betting on Azure for their cloud strategy. These include the likes of Adobe, Coke, Costco, Daimler, Ford, Nuance, P&G, Toyota and BMW.

In addition to the new China regions, Microsoft also today launched a new availability zone for its region in the Netherlands. While availability zones have long been standard among the big cloud providers, Azure only launched this feature — which divides a region into multiple independent zones — into general availability earlier this year. The regions in the Netherlands, Paris and Iowa now offer this additional safeguard against downtime, with others to follow soon.

In other Azure news, Microsoft also today announced that Azure IoT Edge is now generally available. In addition, Microsoft announced the second generation of its Azure Data Lake Storage service, which is now in preview, and some updates to the Azure Data Factory, which now includes a web-based user interface for building and managing data pipelines.



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UK ‘knew US mistreated rendition detainees’

Canadian Yahoo hacker gets a five-year prison sentence – TechCrunch


After pleading guilty in November, the Canadian hacker at least partially to blame for the massive Yahoo hack that exposed up to 3 billion accounts will face five years in prison. According to the Justice Department, the hacker, 23-year-old Karim Baratov, worked under the guidance of two agents from the FSB, Russia’s spy agency, to compromise the accounts.

Those officers, Dmitry Dokuchaev and Igor Sushchin, reside in Russia, as does Latvian hacker Alexsey Belan who also was implicated in the Yahoo hack. Given their location, those three are unlikely to face consequences for their involvement, but Baratov’s Canadian citizenship made him vulnerable to prosecution.

“Baratov’s role in the charged conspiracy was to hack webmail accounts of individuals of interest to his coconspirator who was working for the FSB and send those accounts’ passwords to Dokuchaev in exchange for money,” the Justice Department described in its summary of Baratov’s sentencing.

Acting U.S. Attorney for the Northern District of California Alex G. Tse issued a stern warning to other would-be hackers doing a foreign government’s dirty work:

The sentence imposed reflects the seriousness of hacking for hire. Hackers such as Baratov ply their trade without regard for the criminal objectives of the people who hire and pay them. These hackers are not minor players; they are a critical tool used by criminals to obtain and exploit personal information illegally. In sentencing Baratov to five years in prison, the Court sent a clear message to hackers that participating in cyber attacks sponsored by nation states will result in significant consequences.

In addition to his prison sentence, Baratov was ordered to pay out all of his remaining assets up to $2,250,000 in the form of a fine. As part of his plea, Baratov also admitted to hacking as many as 11,000 email accounts between 2010 and his arrest in 2017.

Baratov’s crimes include aggravated identity theft and conspiracy to violate the Computer Fraud and Abuse Act.



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Amazon is retiring CPM Ads, a display ad network for Amazon Associates, by the end of September – TechCrunch


Amazon, by more than one account, wants to become a big competitor in advertising against the likes of Facebook and Google, but its approach to how it will do this is something of a moving target, with pieces coming and going. In the latest development, the company has quietly announced that it is retiring by the end of September an ad product called CPM Ads. CPM Ads were first launched in 2014 and represented an early foray into display advertising for Amazon, allowing smaller web publishers that were a part of the company’s Amazon Associates affiliate program to run banner and other ads on a cost-per-impression (CPM) model on their sites.

Amazon notified Associates with an alert on their dashboards today (see above) and it has also provided a note on the retirement in its help topics for affiliates. It notes that CPM Ads will be stopped on September 30, 2018, with the last payments coming by November 30, and reports on ads getting discontinued on December 31.

Amazon does not explain why it has decided to phase out CPM Ads — we have contacted the company to ask — but one reason could be because the company is either moving more publishers to other ad units and/or these have not proven to be as popular as expected. The retirement note suggests publishers consider its Unified Ad Marketplace and Native Shopping Ads, if they qualify to use them.

Amazon describes the Unified Ad Marketplace as another display ad product that brings together Amazon and supply-side platforms (which aggregate ad space from many publishers; examples include AppNexus, DoubleClick and the Rubicon Project). But it appears that it seems to be geared to larger sites, rather than smaller publishers, as CPM Ads were.

Native Shopping Ads is another Associates product, and as such it is aimed at the same publishers that were using the CPM Ads. But (as with all native ads) these don’t come in the form of banners, but as product placements either within or just below text, and are meant to be for products that are triggered by content on the page.

Amazon’s retiring of CPM Ads comes at a time when many are predicting that the company wants to take a bigger, not smaller, step into the ad world.

There have been reports that Amazon is gearing up to launch a retargeting ad product aimed to compete against the likes of Google and Criteo. Retargeted ads are based on your browsing and follow you around the web in the hopes of bringing you back eventually to buy products, in this case on Amazon. If you have spent five minutes on Amazon or another e-commerce site, and have then seen your browsing history from those sites presented back to you in the form of ads for days afterwards, then you know what retargeting is. Amazon was a big user of retargeting ads on other networks; now, it seems, it wants to run ads like this on its own network.

Others have predicted that the company is planning more search and video-related advertising formats on its own platforms; and that the company is looking to work with third parties to develop ad products for mobile and TV screens.

Amazon made some $4 billion in advertising revenues in 2017, and it is projected to make $9.5 billion this year. These are still modest numbers: as a point of comparison, Google pulled in $95 billion in 2017.

Nevertheless, Amazon remains a huge competitor to Google in other areas, and since a leadership position can sometimes seemingly evaporate overnight, Google is not sitting idly. It has been working on ways of improving its own direct shopping links in areas like search, bringing its platform (and its advertising) a little closer to how Amazon does business.



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Study calls out ‘dark patterns’ in Facebook and Google that push users towards less privacy – TechCrunch


More scrutiny than ever is in place on the tech industry, and while high-profile cases like Mark Zuckerberg’s appearance in front of lawmakers garner headlines, there are subtler forces at work. This study from a Norway watchdog group eloquently and painstakingly describes the ways that companies like Facebook and Google push their users towards making choices that negatively affect their own privacy.

It was spurred, like many other new inquiries, by Europe’s GDPR, which has caused no small amount of consternation among companies for whom collecting and leveraging user data is their main source of income.

The report (PDF) goes into detail on exactly how these companies create an illusion of control over your data while simultaneously nudging you towards making choices that limit that control.

Although the companies and their products will be quick to point out that they are in compliance with the requirements of the GDPR, there are still plenty of ways in which they can be consumer-unfriendly.

In going through a set of privacy popups put out in May by Facebook, Google, and Microsoft, the researchers found that the first two especially feature “dark patterns, techniques and features of interface design mean to manipulate users…used to nudge users towards privacy intrusive options.”

Flowchart illustrating the Facebook privacy options process – the green boxes are the “easy” route.

It’s not big obvious things — in fact, that’s the point of these “dark patterns”: that they are small and subtle yet effective ways of guiding people towards the outcome preferred by the designers.

For instance, in Facebook and Google’s privacy settings process, the more private options are simply disabled by default, and users not paying close attention will not know that there was a choice to begin with. You’re always opting out of things, not in. To enable these options is also a considerably longer process: 13 clicks or taps versus 4 in Facebook’s case.

That’s especially troubling when the companies are also forcing this action to take place at a time of their choosing, not yours. And Facebook added a cherry on top, almost literally, with the fake red dots that appeared behind the privacy popup, suggesting users had messages and notifications waiting for them even if that wasn’t the case.

When choosing the privacy-enhancing option, such as disabling face recognition, users are presented with a tailored set of consequences: “we won’t be able to use this technology if a stranger uses your photo to impersonate you,” for instance, to scare the user into enabling it. But nothing is said about what you will be opting into, such as how your likeness could be used in ad targeting or automatically matched to photos taken by others.

Disabling ad targeting on Google, meanwhile, warns you that you will not be able to mute some ads going forward. People who don’t understand the mechanism of muting being referred to here will be scared of the possibility — what if an ad pops up at work or during a show and I can’t mute it? So they agree to share their data.

Before you make a choice, you have to hear Facebook’s case.

In this way users are punished for choosing privacy over sharing, and are always presented only with a carefully curated set of pros and cons intended to cue the user to decide in favor of sharing. “You’re in control,” the user is constantly told, though those controls are deliberately designed to undermine what control you do have and exert.

Microsoft, while guilty of the biased phrasing, received much better marks in the report. Its privacy setup process put the less and more private options right next to each other, presenting them as equally valid choices rather than some tedious configuration tool that might break something if you’re not careful. Subtle cues do push users towards sharing more data or enabling voice recognition, but users aren’t punished or deceived the way they are elsewhere.

You may already have been aware of some of these tactics, as I was, but it makes for interesting reading nevertheless. We tend to discount these things when it’s just one screen here or there, but seeing them all together along with a calm explanation of why they are the way they are makes it rather obvious that there’s something insidious at play here.



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FCA may cap charges on drawdown pensions