Архив за месяц: Февраль 2020

Daily Crunch: MWC faces coronavirus concerns

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1. As top exhibitors pull out of MWC, organizers implement stringent safeguards
A couple of weeks before the event, the organizers of Mobile World Congress have issued some fairly sweeping safeguards over growing concerns around the coronavirus. After a number of high-profile back-outs, the organizers announced a ban of visitors originating from the Hubei province, whose capital Wuhan is believed to be the origin of the epidemic.
Following this news on Sunday, Sony and Amazon also pulled out of MWC.
2. NASA and ESA’s Solar Orbiter begins its nearly two-year journey to the Sun
After years of development, an exciting new scientific research spacecraft has launched on its journey to study our solar system’s central player: the Sun.
3. Netflix’s movies only won two Oscars this year
Two Oscars — Best Actress in a Supporting Role for Laura Dern’s performance in “Marriage Story” and Best Documentary Feature for “American Factory” — are a respectable showing for a studio that only started making movies a few years ago. Yet it still feels like a disappointment, given Netflix’s 24 nominations and its aggressive Oscar campaigns.
4. Starling Bank raises another £60M from existing backers
Starling Bank, the U.K.-based challenger bank founded by banking veteran Anne Boden, has raised another £60 million from its existing investors, Merian Global Investors and Harry McPike’s JTC. Starling is also disclosing that customers have opened 1.25 million consumer and business accounts since its banking app launched in May 2017.
5. The team behind Apple’s ‘Mythic Quest’ says video games aren’t the punch line
When video game publisher Ubisoft first approached “It’s Always Sunny in Philadelphia” stars Rob McElhenney and Charlie Day about creating a new show set in the game industry, McElhenney said they weren’t interested — at least not initially. But a visit to Ubisoft’s Montreal office changed his mind.
6. Index Fund’s portfolio is driving long-overdue innovation in femcare
We chatted with Index principal Hannah Seal about the fund’s investment in tampon startup Daye and her broader thoughts on a new generation of female-focused startups. (Extra Crunch membership required.)
7. This week’s TechCrunch podcasts
The Equity team has some thoughts about Casper’s IPO, as well as the strong post-IPO performance of One Medical. And over on Original Content, we review Netflix’s Taylor Swift documentary “Miss Americana” — even if you’re not a Swiftie, I think we had a fun conversation about celebrity culture.

Daily Crunch: MWC faces coronavirus concerns

As top exhibitors pull out of MWC, organizers implement stringent safeguards

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A couple of weeks out, Mobile World Congress organizer, the GSMA, has issued some fairly sweeping safeguards over growing concerns around the coronavirus. After a number of high profile back outs, including ZTE, LG, NVIDIA and Ericsson, the company issued a new list, including a ban of visitors originating from the Hubei province, whose capital Wuhan is believed to be the origin of the epidemic.
Per GSMA CEO John Hoffman,

All travelers from the Hubei province will not be permitted access to the event

All travelers who have been in China will need to demonstrate proof they have been outside of China 14 days prior to the event (passport stamp, health certificate)

Temperature screening will be implemented

Attendees will need to self-certify they have not been in contact with anyone infected.

[Updated] LG withdraws from MWC due to coronavirus-related concerns

More than 800 people have died from the virus, surpassing the 774 people who were killed by SARS circa 2002-2003. Hoffman adds that the organizer will be increasing a disinfectant program around the site and promoting a “no handshake policy.” As the organization notes, some 5,000-6,000 people from China attend the show each year, accounting for around 5-6 percent of visitors.
The GSMA is clearly interested in addressing concerns over the virus, while limiting further attendee or exhibitor erosion. The release quotes Catalan health minister Alba Vergés, who notes, “The Catalan health system is prepared to detect and treat coronavirus, to give the most appropriate response, and this must be clear to those attending MWC Barcelona.”

As top exhibitors pull out of MWC, organizers implement stringent safeguards

Netflix begins streaming in AV1 on Android

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Netflix announced this week that it has started to stream titles in AV1 on Android in what could significantly help the two-year-old media codec gain wider adoption.
The world’s biggest streaming giant said on Wednesday that by switching from Google’s VP9 — which it previously used on Android — to AV1, its compression efficiency has gone up by 20%.
At the moment, only “select titles” are available to stream in AV1 for subscribers “who wish to reduce their cellular data usage by enabling the ‘Save Data’ feature,” the American firm said.
Netflix hasn’t shared much about the benefit AV1 will provide to customers, but the new media codec’s acceptance nonetheless sends a message by itself.
Tech giants, including Google, have spent years developing and improving media codecs as consumption of data skyrocketed and low-cost devices began to sell like hotcakes. But they just can’t seem to settle on one media codec and universally support it.
Think of Safari and YouTube, for instance. You can’t stream YouTube videos in 4K resolution on Safari, because Apple’s browser does not support Google’s VP9. And Google does not support HEVC for 4K videos on YouTube.
AV1 is supposed to be the savior media codec that gets universal support. It’s royalty-free and it works atop of open-source dav1d decoder that has been built by VideoLAN, best known for its widely popular media player VLC and FFmpeg communities. It is sponsored by the Alliance for Open Media.
Who are the members of Alliance for Open Media? Nearly all the big guys: Apple, Google, Amazon, Netflix, Nvidia, ARM, Facebook, Microsoft, Mozilla, Samsung and Tencent, among others.
But that’s not to say there aren’t roadblocks in the adoption of AV1. Compared to HEVC — the format that AV1 is supposed to replace in popularity — encoding in AV1 was noticeably slower a year ago, as per some benchmark tests.
Adoption of AV1 by various browsers, according to analytics firm StatCounter. Safari is yet to support it.
Netflix’s announcement suggests that things have improved. The streaming giant said its goal is to support AV1 on all of its platforms. “In the spirit of making AV1 widely available, we are sponsoring an open-source effort to optimize 10-bit performance further and make these gains available to all,” it said in a blog post.

Netflix begins streaming in AV1 on Android

Huawei files patent infringement lawsuits against Verizon Communications

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Huawei has filed two patent infringement lawsuits against Verizon Communications in U.S. District Court.
The Chinese telecommunications equipment giant wants Verizon to compensate it for the use of technology it says are covered by 12 Huawei patents, including ones related to networking, security and video communications. Before the lawsuits were filed, Huawei claims it negotiated with Verizon in a series of meetings from February 2019 to January 21, but was unable to reach a license agreement.
(Disclosure: TechCrunch is owned by Verizon Media, a division of Verizon Communications).
Huawei technology is used by telecommunication companies around the world. In a press release about the lawsuits, it says it puts about 10% to 15% of its revenue into research and development each year, and has spent about $70 billion on R&D over the last decade, including about $15 billion in 2018 alone.
This resulted in Huawei receiving more than 80,000 patents around the world, including 10,000 in the U.S.
In its filings, Huawei claims Verizon has “profited greatly” from infringing on its patents, noting that Verizon Communication’s total revenue for its wireline division in 2018 was $29.8 billion.
Huawei maintains a close relationship with many other tech companies, including some competitors, through licenses. It says that it has received more than $1.4 billion in patent license fees since 2015 and in addition to providing access to its own technology, has also paid over $6 billion for licensing patents from other companies, with more than 100 license agreements signed with vendors in the U.S., Europe, Japan and South Korea.
In its press release, Huawei’s chief legal officer Song Liuping said “Verizon’s products and services have benefitted from patented technology that Huawei developed over many years of research and development.”
“For years now we have successfully negotiated patent license agreements with many companies. Unfortunately, when no agreement can be reached, we have no choice but to see a legal remedy,” Song added. “This is a common practice in the industry. Huawei is simply asking that Verizon respect Huawei’s investment in research and development by either paying for the use of our patents, or refraining from using them in its products and services.”
TechCrunch has contacted Verizon Communications for comment.
The patent infringement lawsuit is taking place against the backdrop of Huawei’s legal entanglements with the U.S. government, which claims it is a national security threat, a charge Huawei denies.

The Pentagon pushes back on Huawei ban in bid for ‘balance’

Huawei has been on a U.S. trade blacklist since the last May and is suing the government over what it says is an unconstitutional ban on the use of its products by federal agencies and contractors. Huawei’s technology is used by many telecom companies around the world, however, and its close ties with U.S. supply chains were underscored last month when the Defense and Treasury Departments reportedly put pressure on the Commerce Department over the ban.

Huawei files patent infringement lawsuits against Verizon Communications

Snapchat hits 218M users but big Q4 losses sink share price

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Snapchat still isn’t profitable nearly two years after its IPO. In Q4 2019, Snap lost $241 million on 560.8 million in revenue that’s up 44% year-over-year and an EPS of $0.03. That comes from adding 8 million daily users to reach a total of 218, up 3.8% this quarter from 210 million and 17% year-over-year.
The big problem was a one-time $100 million legal settlement that pushed it to lose $49 million more in Q4 2019 than Q4 2018. That comes from a shareholders lawsuit claiming Snap didn’t adequately disclose the impact of competition from Facebook on its business. The IPO was soured by weak user growth as people shifted from Snapchat Stories to Instagram Stories.

A rough Q4
Snapchat had a mixed quarter compared to estimates, exceeding the EPS predicitions but falling short on revenue. FactSet’s consensus predicted $563 million in revenue and a loss of $0.12 EPS. Estimize’s consensus came in at $568 million in revenue and an EPS gain of $0.02.
Snapchat shares plunged over 10% in after-hours trading following the announcement. Shares had closed up 4.17% at $18.99 today. That’s up from a low of $4.99 in December 2018 when its user count was shrinking under competition from Instagram Stories. It’s now hovering around its $17 IPO price but it’s still under its post-IPO pop to $27.09.
Snap gave stronger than expected revenue guidance for Q1 2020 of $450 million to $470 million, and 224 million to 225 million users. The company’s CFO Derek Anderson says that “Q4 marked our first quarter of Adjusted EBITDA profitability at $42 million for the quarter, an improvement of $93 million over the prior year.” Still, he predicts an Adjusted EBITDA in Q1 of negative $90 million to negative $70 million. That’s manageable for Snap without raising more money, since it now has $2.1 billion in cash and marketable securities, down $148 million quarter-after-quarter.

Snapchat 2020
“Throughout the course of 2019, we added 31 million daily active users, largely driven by investments in our core product and improvements to our Android application “said Snapchat CEO Evan Spiegel . “We’ve recently completed our 2020 strategic planning process and have aligned our teams and resources around our goals of supporting real friendships on Snapchat, expanding our service to a broader global community, investing in our AR and content platforms, and scaling revenue while achieving profitability in order to self-fund our investments in the future.”
Some other highlights:
1.3 trillion Snaps were created in 2019
The average Snapchat user engages for 30 minutes per day,
Snapchat reaches 90% of US 13 to 24 year-olds and over 75% of 13 to 34 year-olds
Total daily time spent by Snapchatters watching Discover increased by 35% year-over-year, and its up 60% for users over the age of 25
Over 50 Snapchat shows reached a monthly audience of 10 million viewers or more
75% of users engage with augmented reality per day
20% of Snaps sent with an AR lens were made with commununity-developed lenses
5X more users open the Lens Explorer now versus a year ago, and 10% of users open it every day
Snapchat’s user growth has been on tear thanks to international penetration, especially in India, after it re-engineered its Android app for developing markets. It gained users in all markets. Crucially, it raised its average revenue per user 23% from $2.09 in Q4 2018 to $2.58, though only from $1.24 to $1.35 in the Rest Of World region where it’s growing user count the fastest. Snap will need to figure out how to squeeze more cash out of the international market to offset the costs of streaming tons of video to these users.

Q4 saw Snapchat readying several new products that could help boost engagement and therefore ad views. Cameos, first reported by TechCrunch, lets users graft their face onto an actor in an animated GIF like a lightweight Deepfake. Bitmoji TV, which won’t run ads initially but could drive attention to Snapchat Discover, offers zany four-minute cartoons that star your Bitmoji avatar. We could see a bump to engagement from these starting in Q1 2020.
To retain its augmented reality filter creators, Snapchat has pledged $750,000 in payouts in 2020. It’s also expanded the use of product catalog ads, and now lets advertisers buy longer skippable ads.
Outside of the legal settlement, Snapchat is inching closer to profitability but still has a ways to go. It’s managed to develop a strong synergy between its popular chat feature that’s tougher to monetize, and the Stories and Discover content where it can inject ads. The big question is whether Facebook Messenger, Instagram, and WhatsApp will get more serious about ephemeral messaging that’s at the core of Snapchat. If it can hold onto the market and maintain its place as where teens talk, it could ride out its costs and build revenue until it’s sustainable for the long-term.

Snapchat launches Bitmoji TV: zany 4-min cartoons of your avatar

Snapchat hits 218M users but big Q4 losses sink share price