Архив рубрики: Apps

Instagram drops IGTV button, but only 1% downloaded the app

At most, 7 million of Instagram’s 1 billion-plus users have downloaded its standalone IGTV app in the 18 months since launch. And now, Instagram’s main app is removing the annoying orange IGTV button from its home page in what feels like an admission of lackluster results. For reference, TikTok received 1.15 billion downloads in the same period since IGTV launched in June 2018. In just the US, TikTok received 80.5 million downloads compared to IGTV’s 1.1 million since then, according to research commissioned by TechCrunch from Sensor Tower.
To be fair, TikTok has spent huge sums on install ads. But while long-form mobile video might gain steam as the years progress, Instagram hasn’t seemed to crack the code yet.
“As we’ve continued to work on making it easier for people to create and discover IGTV content, we’ve learned that most people are finding IGTV content through previews in Feed, the IGTV channel in Explore, creators’ profiles and the standalone app. Very few are clicking into the IGTV icon in the top right corner of the home screen in the Instagram app” a Facebook company spokesperson tells TechCrunch. “We always aim to keep Instagram as simple as possible, so we’re removing this icon based on these learnings and feedback from our community.”

Instagram users don’t need the separate IGTV app to watch longer videos, as the IGTV experience is embedded in the main app and can be accessed via in-feed teasers, a tab of the Explore page, promo stickers in Stories, and profile tabs. Still, the fact that it wasn’t an appealing enough destination to warrant a home page button shows IGTV hasn’t become a staple like past Instagram launches including video, Stories, augmented reality filters, or Close Friends.
One thing still missing is an open way for Instagram creators to earn money directly from their IGTV videos. Users can’t get an ad revenue share like with YouTube or Facebook Watch. They also can’t receive tips or sell exclusive content subscriptions like on Facebook, Twitch, or Patreon.
The only financial support Facebook and Instagram have offered IGTV creators is reimbursement for production costs for a few celebrities. Those contracts also require creators to avoid making content related to politics, social issues, or elections, according to Bloomberg‘s Lucas Shaw and Sarah Frier.
“In the last few years we’ve offset small production costs for video creators on our platforms and have put certain guidelines in place,” a Facebook spokesperson told Bloomberg. “We believe there’s a fundamental difference between allowing political and issue-based content on our platform and funding it ourselves.” That seems somewhat hypocritical given Facebook CEO Mark Zuckerberg’s criticism of Chinese app TikTok over censorship of political content.

Now users need to tap the IGTV tab inside Instagram Explore to view long-form videoAnother thing absent from IGTV? Large view counts. The first 20 IGTV videos I saw today in its Popular feed all had fewer than 200,000 views. BabyAriel, a creator with nearly 10 million Instagram followers that the company touted as a top IGTV creator has only post 20 of the longer videos to date with only one receiving over 500,000 views.
When the lack of monetization is combined with less than stellar view counts compared to YouTube and TikTok, it’s understandable why some creators might be hesistant to dedicate time to IGTV. Without their content keeping the feature reliably interesting, it’s no surprise users aren’t voluntarily diving in from the home page.
In another sign that Instagram is folding IGTV deeper into its app rather than providing it more breathing room of its own, and that it’s eager for more content, you can now opt to post IGTV videos right from the main Instagram feed post video uploader. AdWeek Social Pro reported this new “long video” upload option yesterday. A Facebook company spokesperson tells me “We want to keep our video upload process as simple as possible” and that “Our goal is to create a central place for video uploads”.

 
IGTV launched with a zealotish devotion to long-form vertical video despite the fact that little high quality content of this nature was being produced. Landscape orientation is helpful for longer clips that often require establishing shots and fitting multiple people on screen, while vertical was better for quick selfie monologues.
Yet Instagram co-founder Kevin Systrom described IGTV to me in August 2018, declaring that “What I’m most proud of is that Instagram took a stand and tried a brand new thing that is frankly hard to pull off. Full-screen vertical video that’s mobile only. That doesn’t exist anywhere else.”
Now it doesn’t exist on Instagram at all since May 2019 when IGTV retreated from its orthodoxy and began allowing landscape content. I’d recommended it do that from the beginning, or at least offer a cropping tool for helping users turn their landscape videos into coherent vertical ones, but nothing’s been launched there either.

If Instagram still cares about IGTV, it needs to attract more must-see videos by helping creators get paid for their art. Or it needs to pour investment into buying high quality programming like Snapchat Discover’s Shows. If Instagram doesn’t care, it should divert development resources to it’s TikTok clone Reels that actually looks very well made and has a shot at stealing market share in the remixable social entertainment space.
For a company that’s won by betting big and moving fast, IGTV feels half-baked and sluggish. That might have been alright when Snapchat was shrinking and TikTok was still Musically, but Instagram is heading into an era of much stiffer competition. Quibi and more want to consume multi-minute spans of video viewing on mobile, and the space could grow as adults familiarize with the format. But offering the platform isn’t enough for Instagram. It needs to actively assist creators with finding what content works, and how to earn sustainable wages marking it.

Instagram drops IGTV button, but only 1% downloaded the app

Marijuana delivery giant Eaze may go up in smoke

The first cannabis startup to raise big money in Silicon Valley is in danger of burning out. TechCrunch has learned that pot delivery middleman Eaze has seen unannounced layoffs, and its depleted cash reserves threaten its ability to make payroll or settle its AWS bill. Eaze was forced to raise a bridge round to keep the lights on as it prepares to attempt a major pivot to “touching the plant” by selling its own marijuana brands through its own depots.
TechCrunch spoke with nine sources with knowledge of Eaze’s struggles to piece together this report. If Eaze fails, it could highlight serious growing pains amid the “green rush” of startups into the marijuana business.
Eaze, the startup backed by some $166 million in funding that once positioned itself as the “Uber of pot” — a marketplace selling pot and other cannabis products from dispensaries and delivering it to customers — has recently closed a $15 million bridge round, according to multiple sources. The funding was meant to keep the lights on as Eaze struggles to raise its next round of funding amid problems with making decent margins on its current business model, lawsuits, payment processing issues and internal disorganization.
 

An Eaze spokesperson confirmed that the company is low on cash. Sources tell us that the company, which laid off some 30 people last summer, is preparing another round of cuts in the meantime. The spokesperson refused to discuss personnel issues, but noted that there have been layoffs at many late-stage startups as investors want to see companies cut costs and become more efficient.
From what we understand, Eaze is currently trying to raise a $35 million Series D round, according to its pitch deck. The $15 million bridge round came from unnamed current investors. (Previous backers of the company include 500 Startups, DCM Ventures, Slow Ventures, Great Oaks, FJ Labs, the Winklevoss brothers and a number of others.) Originally, Eaze had tried to raise a $50 million Series D, but the investor that was looking at the deal, Athos Capital, is said to have walked away at the eleventh hour.
Eaze is going into the fundraising with an enterprise value of $388 million, according to company documents reviewed by TechCrunch. It’s not clear what valuation it’s aiming for in the next round.
An Eaze spokesperson declined to discuss fundraising efforts, but told TechCrunch, “The company is going through a very important transition right now, moving to becoming a plant-touching company through acquisitions of former retail partners that will hopefully allow us to more efficiently run the business and continue to provide good service to customers.”
Desperate to grow margins
The news comes as Eaze is hoping to pull off a “verticalization” pivot, moving beyond online storefront and delivery of third-party products (rolled joints, flower, vaping products and edibles) and into sourcing, branding and dispensing the product directly. Instead of just moving other company’s marijuana brands between third-party dispensaries and customers, it wants to sell its own in-house brands through its own delivery depots to earn a higher margin. With a number of other cannabis companies struggling, the hope is that it will be able to acquire at low prices brands in areas like marijuana flower, pre-rolled joints, vaporizer cartridges or edibles.
An Eaze spokesperson confirmed that the company plans to announce the pivot in the coming days, telling TechCrunch that it’s “a pretty significant change from provider of services to operating in that fashion but also operating a depot directly ourselves.”

The startup is already making moves in this direction, and is in the process of acquiring some of the assets of a bankrupt cannabis business out of Canada called Dionymed — which had initially been a partner of Eaze’s, then became a competitor, and then sued it over payment disputes, before finally selling part of its business. These assets are said to include Oakland dispensary Hometown Heart, which it acquired in an all-share transaction (“Eaze effectively bought the lawsuit,” is how one source described the sale). This will become Eaze’s first owned delivery depot.
In a recent presentation deck that Eaze has been using when pitching to investors — which has been obtained by TechCrunch — the company describes itself as the largest direct-to-consumer cannabis retailer in California. It has completed more than 5 million deliveries, served 600,000 customers and tallied up an average transaction value of $85. 

To date, Eaze has only expanded to one other state beyond California (Oregon). Its aim is to add five more states this year, and another three in 2021. But the company appears to have expected more states to legalize recreational marijuana sooner, which would have provided geographic expansion. Eaze seems to have overextended itself too early in hopes of capturing market share as soon as it became available.
An employee at the company tells us that on a good day Eaze can bring in between $800,000 and $1 million in net revenue, which sounds great, except that this is total merchandise value, before any cuts to suppliers and others are made. Eaze makes only a fraction of that amount, one reason why it’s now looking to verticatlize into more of a primary role in the ecosystem. And that’s before considering all of the costs associated with running the business. 
Eaze is suffering from a problem rampant in the marijuana industry: a lack of working capital. Because banks often won’t issue working capital loans to weed-related business, deliverers like Eaze can experience delays in paying back vendors. Another source says late payments have pushed some brands to stop selling through Eaze.

Another drain on its finances has been its marketing efforts. A source said out-of-home ads (billboards and the like) allegedly were a significant expense at one point. It has to compete with other pot-purchasing options like visiting retail stores in person, using dispensaries’ in-house delivery services or buying via startups like Meadow that act as aggregated online points of sale for multiple dispensaries.
Indeed, Eaze claims that its pivot into verticalization will bring it $204 million in revenues on gross transactions of $300 million. It notes in the presentation that it makes $9.04 on an average sale of $85, which will go up to $18.31 if it successfully brings in “private label” products and has more depot control.
Selling weed isn’t eazy
The poor margins are only one of the problems with Eaze’s current business model, which the company admits in its presentation have led to an inconsistent customer experience and poor customer affinity with its brand — especially in the face of competition from a number of other delivery businesses.  
Playing on the on-demand, delivery-of-everything theme, it connected with two customer bases. First, existing cannabis consumers already using some form of delivery service for their supply; and a newer, more mainstream audience with disposable income that had become more interested in cannabis-related products but might feel less comfortable walking into a dispensary, or buying from a black market dealer.

It is not the only startup that has been chasing that audience. Other competitors in the wider market for cannabis discovery, distribution and sales include Weedmaps, Puffy, Blackbird, Chill (a brand from Dionymed that it founded after ending its earlier relationship with Eaze), and Meadow, with the wider industry estimated to be worth some $11.9 billion in 2018 and projected to grow to $63 billion by 2025.
Eaze was founded on the premise that the gradual decriminalization of pot — first making it legal to buy for medicinal use, and gradually for recreational use — would spread across the U.S. and make the consumption of cannabis-related products much more ubiquitous, presenting a big opportunity for Eaze and other startups like it. 
It found a willing audience among consumers, but also tech workers in the Bay Area, a tight market for recruitment. 
“I was excited for the opportunity to join the cannabis industry,” one source said. “It has for the most part gotten a bad rap, and I saw Eaze’s mission as a noble thing, and the team seemed like good people.”
Eaze CEO Ro Choy
That impression was not to last. The company, this employee was told when joining, had plenty of funding with more on the way. The newer funding never materialized, and as Eaze sought to figure out the best way forward, the company cycled through different ideas and leadership: former Yammer executive Keith McCarty, who co-founded the company with Roie Edery (both are now founders at another cannabis startup, Wayv), left, and the CEO role was given to another ex-Yammer executive, Jim Patterson, who was then replaced by Ro Choy, who is the current CEO. 
“I personally lost trust in the ability to execute on some of the vision once I got there,” the ex-employee said. “I thought that on one hand a picture was painted that wasn’t the truth. As we got closer and as I’d been there longer and we had issues with funding, the story around why we were having issues kept changing.” Several sources familiar with its business performance and culture referred to Eaze as a “shitshow.”
No ‘Push for Kush’
The quick shifts in strategy were a recurring pattern that started well before the company got into tight financial straits. 
One employee recalled an acquisition Eaze made several years ago of a startup called Push for Pizza. Founded by five young friends in Brooklyn, Push for Pizza had gone viral over a simple concept: you set up your favorite pizza order in the app, and when you want it, you pushed a single button to order it. (Does that sound silly? Don’t forget, this was also the era of Yo, which was either a low point for innovation, or a high point for cynicism when it came to average consumer intelligence… maybe both.)

Eaze’s idea, the employee said, was to take the basics of Push for Pizza and turn it into a weed app, Push for Kush. In it, customers could craft their favorite mix and, at the touch of a button, order it, lowering the procurement barrier even more.
The company was very excited about the deal and the prospect of the new app. They planned a big campaign to spread the word, and held an internal event to excite staff about the new app and business line. 
“They had even made a movie of some kind that they showed us, featuring a caricature of Jim” — the CEO at a the time — “hanging out of the sunroof of a limo.” (We found the opening segment of this video online, and the Twitter and Instagram accounts that had been created for Push for Kush, but no more than that.)
Then just one week later, the whole plan was scrapped, and the founders of Push for Pizza fired. “It was just brushed under the carpet,” the former employee said. “No one could get anything out of management about what had happened.”

Something had happened, though: The company had been taking payments by card when it made the acquisition, but the process was never stable and by then it had recently gone back to the cash-only model. Push for Kush by cash was less appealing. “They didn’t think it would work,” the person said, adding that this was the normal course of business at the startup. “Big initiatives would just die in favor of pushing out whatever new thing was on the product team’s radar.” 
Eaze’s spokesperson confirmed that “we did acquire Push for Pizza . . but ultimately didn’t choose to pursue [launching Push for Kush].”
Payments were a recurring issue for the startup. Eaze started out taking payments only in cash — but as the business grew, that became increasingly problematic. The company found itself kicked off the credit card networks and was stuck with a less traceable, more open to error (and theft) cash-only model at a time when one employee estimated it was bringing in between $800,000 and $1 million per day in sales. 
Eventually, it moved to cards, but not smoothly: Visa specifically did not want Eaze on its platform. Eaze found a workaround, employees say, but it was never above board, which became the subject of the lawsuit between Eaze and Dionymed. Currently the company appears to only take payments via debit cards, ACH transfer and cash, not credit card.
Another incident sheds light on how the company viewed and handled security issues. 
Can Eaze rise from the ashes?
At one point, employees allegedly discovered that Eaze was essentially storing all of its customer data — including users’ signatures and other personal information — in an Azure bucket that was not secured, meaning that if anyone was nosing around, it could be easily discovered and exploited.
The vulnerability was brought to the company’s attention. It was something that was up to product to fix, but the job was pushed down the list. It ultimately took seven months to patch this up. “I just kept seeing things with all these huge holes in them, just not ready for prime time,” one ex-employee said of the state of products. “No one was listening to engineers, and no one seemed to be looking for viable products.” Eaze’s spokesperson confirms a vulnerability was discovered but claims it was promptly resolved.

Today, the issue is a more pressing financial one: The company is running out of money. Employees have been told the company may not make its next payroll, and AWS will shut down its servers in two days if it doesn’t pay up. 
Eaze’s spokesperson tried to remain optimistic while admitting the dire situation the company faces. “Eaze is going to continue doing everything we can to support customers and the overall legal cannabis industry. We’re excited about the future and acknowledge the challenges that the entire community is facing.”
As medicinal and recreational marijuana access became legal in some states in the latter 2010s, entrepreneurs and investors flocked to the market. They saw an opportunity to capitalize on the end of a major prohibition — a once in a lifetime event. But high government taxes, enduring black markets, intense competition and a lack of financial infrastructure willing to deal with any legal haziness have caused major setbacks.
While the pot business might sound chill, operations like Eaze depend on coordinating high-stress logistics with thin margins and little room for error. Plenty of food delivery startups, from Sprig to Munchery, went under after running into similar struggles, and at least banks and payment processors would work with them. With the odds stacked against it, Eaze has a tough road ahead.

Marijuana delivery giant Eaze may go up in smoke

Instagram adds Boomerang effects as TikTok looms

TikTok has spawned countless memes formats from its creative effects, challenging Instagram for the filtered video crown. Now nearly five years after launching Boomerang, Instagram’s back-and-forth video loop maker is finally getting a big update to its own editing options. Users around the globe can now add SlowMo, “Echo” blurring, and “Duo” rapid rewind special effects to their Boomerangs, as well as trim their length. This is the biggest upgrade yet for one of mobile’s most popular video creation tools.

The effects could help keep Instagram interesting. After so many years of Boomerangs, many viewers simply skip past them in Stories after the first loop since they’re so consistent. The extra visual flare of the new effects could keep people’s attention for a few more seconds and unlock new forms of comedy. That’s critical as Instagram tries to compete with TikTok, which has tons of special effects that have spawned their own meme formats.
“Starting today, people on Instagram will be able to share new SloMo, Echo and Duo Boomerang modes on Instagram” a Facebook company spokesperson tells TechCrunch. “Your Instagram camera gives you ways to express yourself and easily share what you’re doing, thinking or feeling with your friends. Boomerang is one of the most beloved camera formats and we’re excited to expand the creative ways that you can use Boomerang to turn everyday moments into something fun and unexpected.”

The new Boomerang tools can be found by swiping right on Instagram to open the Stories composer, and then swiping left at the bottom of the screen’s shutter selector. After shooting a Boomerang, an infinity symbol button atop the screen reveals the alternate effects and video trimmer. Mobile researcher Jane Manchun Wong spotted Instagram prototyping new Boomerang filters and the trimmer last year.
Typically, Boomerang captures one second of silent video which is then played forward and then in reverse three times to create a six second loop that can be shared or downloaded as a video. Here are the new effects you can add plus how Instagram described them to me in a statement:
SlowMo – Reduces Boomerangs to half-speed so they play for two seconds in each direction instead of one second. “Slows down your Boomerang to capture each detail”
Echo – Adds a motion blur effect so a translucent trail appears behind anything moving, almost like you’re drunk or tripping. “Creates a double vision effect.”
Duo – Rapidly rewinds the clip to the beginning with a glitchy, digitized look. “Both speeds up and slows down your Boomerang, adding a texturized effect.”
Trimming – Shorten your Boomerang with similar controls to iPhone’s camera roll or the Instagram feed video composer. “Edit the length of your Boomerang, and when it starts or ends.”

The effects aren’t entirely original. Snapchat has offered slow-motion and fast-foward video effects since just days after the original launch of Boomerang back in 2015. TikTok meanwhile provides several motion blur filters and pixelated transitions. But since these are all available with traditional video, unlike on Instagram where they’re confined to Boomerangs, there’s more creative flexibility to use the effects to hide cuts between takes or play with people’s voices.
That’s won TikTok a plethora of ingenius memes that rely on these tools. Users high-five themselves using an Echo-esque feature, highlight action-packed moments or loud sounds with Duo-style glitch cuts, and conjure an army of doppelgangers behind them with infinity clones effect. Instagram Stories has instead focused on augmented reality face filters and classier tools like layout.
TikTok Screenshots
Hopefully we’ll see Instagram’s new editing features brought over to its main Stories and video composers. Video trimming would be especially helpful since a boring start to a Story can quickly lead viewers to skip it.
Instagram has had years of domination in the social video space. But with Snapchat finally growing again and TikTok becoming a global phenomenon, Instagram must once again fight to maintain its superiority. Now approaching 10 years old, it’s at risk of becoming stale if it can’t keep giving people ways to make hastily shot phone content compelling.

Instagram adds Boomerang effects as TikTok looms

Zuckerberg ditches annual challenges, but needs cynics to fix 2030

Mark Zuckerberg won’t be spending 2020 focused on wearing ties, learning Mandarin or just fixing Facebook. “Rather than having year-to-year challenges, I’ve tried to think about what I hope the world and my life will look in 2030,” he wrote today on Facebook. As you might have guessed, though, Zuckerberg’s vision for an improved planet involves a lot more of Facebook’s family of apps.
His biggest proclamations in today’s notes include that:
AR – Phones will remain the primary computing platform for most of the decade but augmented reality could get devices out from between us so we can be present together — Facebook is building AR glasses
VR – Better virtual reality technology could address the housing crisis by letting people work from anywhere — Facebook is building Oculus
Privacy – The internet has created a global community where people find it hard to establish themselves as unique, so smaller online groups could make people feel special again — Facebook is building more private groups and messaging options
Regulation – The big questions facing technology are too thorny for private companies to address by themselves, and governments must step in around elections, content moderation, data portability and privacy — Facebook is trying to self-regulate on these and everywhere else to deter overly onerous lawmaking

These are all reasonable predictions and suggestions. However, Zuckerberg’s post does little to address how the broadening of Facebook’s services in the 2010s also contributed to a lot of the problems he presents:
Isolation – Constant passive feed scrolling on Facebook and Instagram has created a way to seem like you’re being social without having true back-and-forth interaction with friends
Gentrification – Facebook’s shuttled employees have driven up rents in cities around the world, especially the Bay Area
Envy – Facebook’s algorithms can make anyone without a glamorous, Instagram-worthy life look less important, while hackers can steal accounts and its moderation systems can accidentally suspend profiles with little recourse for most users
Negligence – The growth-first mentality led Facebook’s policies and safety to lag behind its impact, creating the kind of democracy, content, anti-competition and privacy questions it’s now asking the government to answer for it
Noticeably absent from Zuckerberg’s post are explicit mentions of some of Facebook’s more controversial products and initiatives. He writes about “decentralizing opportunity” by giving small businesses commerce tools, but never mentions cryptocurrency, blockchain or Libra directly. Instead he seems to suggest that Instagram store fronts, Messenger customer support and WhatsApp remittance might be sufficient. He also largely leaves out Portal, Facebook’s smart screen that could help distant families stay closer, but that some see as a surveillance and data collection tool.
I’m glad Zuckerberg is taking his role as a public figure and the steward of one of humanity’s fundamental utilities more seriously. His willingness to even think about some of these long-term issues instead of just quarterly profits is important. Optimism is necessary to create what doesn’t exist.
Still, if Zuckerberg wants 2030 to look better for the world, and for the world to look more kindly on Facebook, he may need to hire more skeptics and cynics that see a dystopic future instead — people who understand human impulses toward greed and vanity. Their foresight on where societal problems could arise from Facebook’s products could help temper Zuckerberg’s team of idealists to create a company that balances the potential of the future with the risks to the present.

Every new year of the last decade I set a personal challenge. My goal was to grow in new ways outside my day-to-day work…
Posted by Mark Zuckerberg on Thursday, January 9, 2020

For more on why Facebook can’t succeed on idealism alone, read:

Zuckerberg asks forgiveness, but Facebook needs change

 

Zuckerberg ditches annual challenges, but needs cynics to fix 2030

Scheduled is a new app that lets you schedule your text messages

 Want to remember to tell a friend happy birthday, good luck or congratulations? Had a follow-up question for a client that just occurred to you at 1 AM? Want to write a heartfelt thank you to be texted at a later date? Unfortunately, neither SMS nor most messaging apps – including iMessage – allow you to draft a text in advance and schedule it to be sent out on a later date. But… Read More

Scheduled is a new app that lets you schedule your text messages