Category: UNCATEGORIZED

21 Oct 2019

Sydney’s AirTree Ventures closes $275M fund as Aussie unicorns gather pace

The Australian scene industry has, in the last few years, started to generate a swathe of startups that have broken through internationally. Prior to this current era, Australia was scene has very much a local market in tech terms, with only occasional breakouts, like Atlassian . In fact, it’s now gaining a reputation as a serial producer of high-quality tech platforms, the hottest of which right now is Canva, which recently raised an additional $85 million to bring its valuation to $3.2 billion, up from $2.5 billion in May. Investors in the company include Bond, General Catalyst, Bessemer Venture Partners, Blackbird and Sequoia China. Notably, Sydney-based AirTree Ventures also invested early.

So that momentum is further confirmed by the news that Airtree has closed its 3rd fund of $275m. This new fund comes after AirTree’s $250m fund in 2016 and a $60m fund in 2014. You can clearly see the buildup in these numbers.

John Henderson, Partner said: “The interest from investors in our fund is a stunning reflection on the performance of the entrepreneurs we’ve been lucky enough to back. We were humbled by overwhelming demand, but felt it was the right thing for our investors to maintain discipline and a consistent fund size across vintages.”

Australian venture capital was less than fashionable after the dotcom boom and bust, and local institutional capital in Australia and New Zealand all but disappeared, hence why we saw so few startups form the region.

AirTree’s $60m fund in 2014, broke that drought and Australia now boasts over 50 tech startups valued at $100 million, 14 over $500 million and produces one ‘unicorn’ per year on average.

Airtree has gone on to invest in Australian and Kiwi startups like Canva, Prospa, Secure Code Warrior, Athena, Flurosat, Brighte, Joyous, Thematic and A Cloud Guru. Prospa, Australia’s main online lender to small businesses, IPO’ed on the Australian Stock Exchange in June 2019.

Airtree can invest as little as $200k, but now has the firepower to own the pipeline all the way up the investment stack.

Craig Blair, Managing Partner commented: “As ex-founders, we have experienced the tough, lonely road ourselves. This empathy with the founder journey helps us focus on when to provide support and when to get out of the way. In our next fund, we’ll be expanding our suite of services and our network of connections, all designed to give our founders an unfair advantage.”

The VC also announced two promotions and a new executive hire:

• Elicia McDonald promoted to Principal, with a mandate to lead new investments
• Emily Close joining the investment team, promoted to Associate
• Melissa Ran leading AirTree’s Community and Advocacy efforts

AirTree’s latest fund is backed by six institutional investors from Australia including AustralianSuper, SunSuper and Statewide. The rest of the new fund comes from a range of successful entrepreneurs and family offices.

Henderson added: “An important portion of our portfolio is already in New Zealand and we remain very focused on supporting that market. We’ve been investing meaningful resources and funds in New Zealand since 2014 and we’ll have more Kiwi news to share soon.”

The fund raise follows news that AirTree portfolio company Property-tech start-up :Different has raised a second round of capital from AirTree, alongside Brisbane-based real estate fund PieLAB, as it expands into Queensland.

21 Oct 2019

Moon’s browser extension lets you pay with bitcoin on Amazon

Meet Moon, a three-person startup that lets you pay for stuff on Amazon using bitcoin via the Lightning Network, bitcoin, Litecoin or Ether. The company has released a desktop browser extension for Google Chrome, Brave and Opera.

While some e-commerce retailers let you pay with cryptocurrencies, the biggest e-commerce platforms have yet to accept cryptocurrencies. Moon doesn’t want to wait and wants to make it possible to pay with cryptocurrencies using current payment methods.

After installing the extension, Moon automatically recognizes when you’re on an Amazon checkout page and inserts the company’s own payment widget. You can see how much you’re going to pay in cryptocurrencies before accepting the transaction.

Right now, Moon lets you pay using two different ways. You can pay with any bitcoin wallet that works on top of the Lightning Network. Normal bitcoin transactions can take minutes to be confirmed on the bitcoin blockchain. The Lightning Network lets you open a payment channel between Lightning nodes to enable fast transactions.

Moon also lets you pay with your crypto balance on your Coinbase account. This way, if you hold bitcoin, Litecoin, Ether, etc. on your Coinbase account, you can also pay in seconds by leveraging Coinbase’s API.

Behind the scene, Moon uses prepaid value on Amazon. When you pay with Moon, the service automatically converts your cryptocurrencies, tops up your Amazon account and pays with your Amazon balance. Moon doesn’t charge additional fees.

In the future, Moon plans to expand beyond the U.S. and Canada and let customers in Europe use the browser extension. Similarly, Moon wants to expand to other e-commerce websites. Moon participated in the Entrepreneurs Roundtable Accelerator.

21 Oct 2019

Nielsen says it can now measure Amazon Prime Video

Nielsen announced this morning it will now be able to measure the viewing taking place on Amazon Prime Video, through its Subscription Video on Demand Content Ratings solution. This product, first launched two years ago, was originally focused on measuring Netflix’s viewing numbers with promises to add support for measuring Prime Video in 2018.

Though delayed by a year, that Prime Video measurement is now available.

Through Nielsen’s service, clients will have access to the measurement data for their own content, as well as the total content lifecycle for competitive media — whether it’s live, content-shifted viewing, steamed or available through video-on-demand, Nielsen says.

As with Netflix, however, Nielsen is able to measure only the Amazon Prime Video streams taking place in the U.S. via TVs. This includes through connected and smart devices — like streaming media players, for example.

That limitation has been a point of criticism from Netflix, which routinely dismisses Nielsen’s accuracy because it misses streams coming from mobile devices and PCs. But insiders now say Nielsen’s numbers are fairly close, according to a Variety report from earlier this year, which detailed how Nielsen’s numbers backed up Netflix’s claims about its hit movie “Bird Box.”

Plus, those missing mobile and PCs streams may not be as important in terms of U.S. viewership as you may think. Although many U.S. consumers are cutting the cord with traditional linear TV, they still often watch their streamed shows on the TV’s big screen. Hulu, for example, said last year that as much as 78% of its viewing takes place on a TV, to give you an idea.

For networks and studios, Nielsen’s SVOD measurement numbers help provide insight into what otherwise can be a bit of a black box. Although Netflix argued during its Q3 earnings last week that it does now share some viewing data with producers, it can be hard for studios and networks to put those numbers in context.

“Nielsen’s measurement in the SVOD space is invaluable for our studio to understand how our programs perform on these platforms and the audiences they attract,” said James Petretti, SVP, U.S. Research and Analytics at Sony Pictures Television, in a statement. “It becomes even more exciting for us, because Nielsen has the ability to help us understand what these audiences are doing outside of those platforms as well— how and what they are watching on other on-demand and linear services,” he continued.

“We are also able to understand the impact of traditional linear advertising driving viewers to these SVOD programs so what Nielsen is providing is extraordinarily compelling,” said Petretti.

To kick off its news of new capabilities, Nielsen also offered a few examples of what sort of data its Prime Video measurements can deliver.

The company says the Amazon Prime Video show “The Boys” averaged 4.1 million viewers per episode, with its premier averaging a little over 6 million. The largest share (39%) of viewers aged 35 to 49, it also said. And within the first 10 days, the show had reached nearly 8 million viewers across its 8-episode season.

“This is a significant milestone for Nielsen, especially considering the upcoming high-profile streaming service launches,” said  Brian Fuhrer, SVP Product Leadership, Nielsen, in a statement. “We think the addition of Amazon Prime Video will allow rights owners an added ability to understand both the size, as well as the composition, of their streaming audiences relative to other platforms or programs. Beyond that, making this enhancement re-affirms our commitment to continuous improvement and to being the one media truth of an increasingly-fragmented video landscape,” he added.

We’ve reached out to Amazon for comment and will update if one is provided.

 

21 Oct 2019

Apple’s control over the App Store is no longer sustainable

Last week, Apple caved to the Chinese government and pulled an app called HKmap.live that was being used by Hong Kong protestors to crowdsource the location of police forces.

While Apple CEO Tim Cook defended Apple’s stance, the move is a reminder that Apple is the only judge and jury regarding what’s acceptable in the App Store — but as mobile devices are integrated into more aspects of our lives, it’s getting harder to justify such tight control over their software.

The current state of the App Store is a great example of the risks of running a marketplace that becomes too big. It also shows that we can expect wide-ranging marketplace regulation in the near future.

The App Store as video game console

Before Apple introduced the App Store in 2008, companies could distribute third-party apps and web services without oversight; consumers could buy floppy disks, download software from the internet or connect to any website.

But with the App Store, Apple decided to control the user experience from approval to distribution. And it has been a massive economic success. There are more than 2.2 million apps in the App Store that have generated over 130 billion downloads.

In many ways, the iOS app ecosystem works more like a video game console than a computer — developers submit games and apps to the maker of the platform, which starts a review process to see if third-party content complies with guidelines. If so, developers may list their game or app on the platform.

The PlayStation 4 has been around for six years and Sony has approved 2,294 games in total, around 380 games per year. Due to the sheer size of the App Store, Apple has faced challenges that console manufacturers have never faced.

Review guidelines are poorly enforced

Apple has written the App Store Review Guidelines, a lengthy document intended to answer all questions about what’s acceptable — but those rules are not enforced consistently, and the App Store isn’t a level playing field, discrepancies I’ve pointed out in the past.

As an example: rule 4.3, titled “Spam:”

Don’t create multiple Bundle IDs of the same app. If your app has different versions for specific locations, sports teams, universities, etc., consider submitting a single app and provide the variations using in-app purchase. Also avoid piling on to a category that is already saturated; the App Store has enough fart, burp, flashlight, and Kama Sutra apps already. Spamming the store may lead to your removal from the Developer Program.

And yet, customers can find plenty of categories with app duplicates and companies trying to game the App Store. For example, I found 13 different VoIP apps released by four companies. Each company had multiple versions of the same app in order to pick different names, keywords and categories to optimize search results.

When I pointed this out to Apple, they removed most of the duplicates in less than 24 hours, but it can’t remain the single source of truth if it doesn’t enforce its own rules properly.

Similarly, as Under the Radar recently pointed out, some developers will always find ways to abuse the App Store. For instance, shady developers acquire apps with a lot of positive ratings, transfer those apps to their own developer account, push updates with expensive weekly recurring subscriptions and take advantage of Apple’s obscure process to cancel subscriptions.

Economic interests first

In its most recent earnings release, Apple reported that Greater China represented 17% of the company’s revenue. The company also manufactures the vast majority of its products in Chinese factories. Apple has a lot to lose in China.

That’s why Apple’s actions in China don’t reflect the company’s principles. Cupertino claims to care deeply about privacy, but it uploads iCloud user data to a state-owned mobile operator in China.

The company says that it cares deeply about privacy but uploads iCloud user data to a state-owned mobile operator in China

Apple first removed HKmap.live from the App Store, then authorized the app again before removing it one more time. The only thing that changed between the first second removal is that the Chinese government started openly criticizing Apple about that specific case.

21 Oct 2019

Digital ad spend reached $57.9B in the first half of 2019, but growth has slowed (IAB report)

During the first six months of 2019, advertisers spent $57.9 billion on U.S. digital advertising, according to the latest report prepared by PwC for the Interactive Advertising Bureau (an online advertising trade group).

That’s a 17% increase compared to the same period in 2018, and the most spending IAB has ever seen in the first half of the year.

However, PwC’s David Silverman noted that it’s actually “a touch lower” compared to the second six months of last year, marking the first time we haven’t seen continual growth since 2009.

Silverman suggested that one factor contributing to this is slowing growth in mobile and social advertising. To be clear, both sectors are up year-over-year: Mobile ads grew 29% to $30.9 billion, while social media spending increased 26% to $16.5 billion.

But he said, “Those sectors of the industry are likely maturing” — so we’re not seeing the growth levels that we have in recent years.

IAB report

Meanwhile, the IAB’s senior vice president of research and analytics Sue Hogan noted that the dropoff between the end of 2018 and beginning of 2019 amounts to “a rounding error” (in fact, the report puts spending during both periods at $57.9 billion).

Overall, she argued that every category remains “healthy,” and that the big story is the growth in video advertising, which was up 36% to $9.5 billion.

The report also includes numbers around revenue concentration, specifically the amount of ad spend going to the top 10 digital ad companies. It doesn’t name specific companies (Google and Facebook are widely seen as the two giants dominating this space), but it says that revenue concentration in the top 10 has fluctuated between 69% and 77% over the past decade.

During the second quarter of 2019, revenue concentration remained at the top end of that range, specifically 76%. Meanwhile, companies 11 through 25 only accounted for 7%.

21 Oct 2019

EU contracts with Microsoft raising “serious” data concerns, says watchdog

Europe’s chief data protection watchdog has raised concerns over contractual arrangements between Microsoft and the European Union institutions which are making use of its software products and services.

The European Data Protection Supervisor (EDPS) opened an enquiry into the contractual arrangements between EU institutions and the tech giant this April, following changes to rules governing EU outsourcing.

Today it writes [with emphasis]: “Though the investigation is still ongoing, preliminary results reveal serious concerns over the compliance of the relevant contractual terms with data protection rules and the role of Microsoft as a processor for EU institutions using its products and services.”

We’ve reached out to Microsoft for comment.

A spokesperson for the company told Reuters: “We are committed to helping our customers comply with GDPR [General Data Protection Regulation], Regulation 2018/1725 and other applicable laws. We are in discussions with our customers in the EU institutions and will soon announce contractual changes that will address concerns such as those raised by the EDPS.”

The preliminary finding follows risk assessments carried out by the Dutch Ministry of Justice and Security, published this summer, which also found similar issues, per the EDPS.

At issue is whether contractual terms are compatible with EU data protection laws intended to protect individual rights across the region.

“Amended contractual terms, technical safeguards and settings agreed between the Dutch Ministry of Justice and Security and Microsoft to better protect the rights of individuals shows that there is significant scope for improvement in the development of contracts between public administration and the most powerful software developers and online service outsourcers,” the watchdog writes today.

“The EDPS is of the opinion that such solutions should be extended not only to all public and private bodies in the EU, which is our short-term expectation, but also to individuals.”

A conference, jointly organized by the EDPS and the Dutch Ministry, which was held in August, brought together EU customers of cloud giants to work on a joint response to tackle regulatory risks related to cloud software provision. The event agenda included a debate on what was billed as “Strategic Vendor Management with respect to hyperscalers such as Microsoft, Amazon Web Services and Google”.

The EDPS says the idea for The Hague Forum — as it’s been named — is to develop a common strategy to “take back control” over IT services and products sold to the public sector by cloud giants.

Such as by creating standard contracts with fair terms for public administration, instead of the EU’s various public bodies feeling forced into accepting T&Cs as written by the same few powerful providers.

Commenting in a statement today, assistant EDPS, Wojciech Wiewiórowski, said: “We expect that the creation of The Hague Forum and the results of our investigation will help improve the data protection compliance of all EU institutions, but we are also committed to driving positive change outside the EU institutions, in order to ensure maximum benefit for as many people as possible. The agreement reached between the Dutch Ministry of Justice and Security and Microsoft on appropriate contractual and technical safeguards and measures to mitigate risks to individuals is a positive step forward. Through The Hague Forum and by reinforcing regulatory cooperation, we aim to ensure that these safeguards and measures apply to all consumers and public authorities living and operating in the EEA.”

EU data protection law means data controllers who make use of third parties to process personal data on their behalf remain accountable for what’s done with the data — meaning EU public institutions have a responsibility to assess risks around cloud provision, and have appropriate contractual and technical safeguards in place to mitigate risks. So there’s a legal imperative to dial up scrutiny of cloud contracts.

In parallel, the EDPS has been pushing for greater transparency in consumer agreements too.

On the latter front Microsoft’s arrangements with consumers using its desktop OS remain under scrutiny in the EU. Earlier this year the Dutch data protection agency referred privacy concerns about how Windows 10 gathers user data to the company’s lead regulator in Europe.

While this summer the company made changes to its privacy policy for its VoIP product Skype and AI assistant Cortana after media reports revealed it employed contractors who could listen in to audio snippets to improve automated translation and inferences.

The French government, meanwhile, has been loudly pursuing a strategy of digital sovereignty to reduce the state’s reliance on foreign tech providers. Though kicking the cloud giant habit may prove harder than ditching Google search.

21 Oct 2019

Netflix to raise $2 billion in debt to fund more content spending

For the second time this year, Netflix is offering $2 billion in debt to fund its investment in content, including original programming, content acquisitions, investments, and more. The news was announced on Monday morning, and was followed by a slight dip in Netflix’s stock price.

The decision to increase its investment in content production follows Netflix’s well-received earnings beat last week, when it reported revenues of $5.24 billion versus the $5.25 billion expected, and EPS of $1.47 versus the $1.07 expected. Despite missing on subscriber numbers in Q3, Netflix’s stock quickly surged on the news.

However, the streaming service is not out of the woods just yet. It will soon face significant competition — especially among families with children — when Disney+ launches next month. Apple is also poised to launch Apple TV+, NBCU is bringing us Peacock, AT&T’s TimeWarner is debuting HBO Max, and Jeffrey Katzenberg is launching a mobile-only service called Quibi with big-name talent attached.

On their own, each of the new services wouldn’t be likely to unseat Netflix as a top streamer. But combined, they can chip away at Netflix’s user base if consumers decide to ditch and switch, instead of adding on yet another subscription.

On Netflix’s Q3 earnings call, Netflix CEO Reed Hastings even admitted that Disney is going to be “a great competitor.” However, he pointed out that all of the services — including Hulu, YouTube and Amazon Prime –have been competing more with linear TV than with each other.

That said, Netflix still needs to up its content game to keep customers subscribed. And that can be expensive.

“We don’t shy away from taking bold swings if we think the business impact will also be amazing. We don’t close every deal we chase and we don’t chase every deal on the table,” said Hastings, in Netflix’s Q3 letter to shareholders. He added that while not all Netflix’s projects work out, the large and growing subscriber base lets its experiment. And the size of its content budget — $10 billion on P&L spend and $15 billion in cash content spend — helps Netflix from getting too dependent on any single hit show.

The company also said its growing revenue base and expanding margins would allow it to fund more content spending internally, with cash flow freeing up further in 2020 and beyond.

In the meantime, however, Netflix is taking on debt.

In today’s announcement, Netflix says it intends to use the net proceeds from this offering “for general corporate purposes, which may include content acquisitions, production and development, capital expenditures, investments, working capital and potential acquisitions and strategic transactions.”

21 Oct 2019

NordVPN confirms it was hacked

NordVPN, a virtual private network provider that promises to “protect your privacy online,” has confirmed it was hacked.

The admission comes following rumors that the company had been breached. It first emerged that NordVPN had an expired internal private keys exposed, potentially allowing anyone to spin out their own servers imitating NordVPN.

VPN providers are increasingly popular as they ostensibly provide privacy from your internet provider and visiting sites about your internet browsing traffic. That’s why journalists and activists often use these services, particularly when they’re working in hostile states. These providers channel all of your internet traffic through one encrypted pipe, making it more difficult for anyone on the internet to see which sites you are visiting or which apps you are using. But often that means displacing your browsing history from your internet provider to your VPN provider. That’s left many providers open to scrutiny, as often it’s not clear if each provider is logging every site a user visits.

For its part, NordVPN has claimed a “zero logs” policy. “We don’t track, collect, or share your private data,” the company says.

But the breach is likely to cause alarm that hackers may have been in a position to access some user data.

NordVPN told TechCrunch that one of its datacenters was accessed in March 2018. “One of the datacenters in Finland we are renting our servers from was accessed with no authorization,” said NordVPN spokesperson Laura Tyrell.

The attacker gained access to the server — which had been active for about a month — by exploiting an insecure remote management system left by the datacenter provider, which NordVPN said they were unaware that such a system existed.

NordVPN did not name the datacenter provider.

“The server itself did not contain any user activity logs; none of our applications send user-created credentials for authentication, so usernames and passwords couldn’t have been intercepted either,” said the spokesperson. “On the same note, the only possible way to abuse the website traffic was by performing a personalized and complicated man-in-the-middle attack to intercept a single connection that tried to access NordVPN.”

According to the spokesperson, the expired private key could not have been used to decrypt the VPN traffic on any other server.

NordVPN said it found out about the breach a “few months ago,” but the spokesperson said the breach was not disclosed until today because the company wanted to be “100% sure that each component within our infrastructure is secure.”

A senior security researcher we spoke to who reviewed the statement and other published evidence, but asked not to be named as they work for a company that requires authorization to speak to the press, called these findings “troubling.”

“While this is unconfirmed and we await further forensic evidence, this is an indication of a full remote compromise of this provider’s systems,” the security researcher said. “That should be deeply concerning to anyone who uses or promotes these particular services.”

NordVPN said “no other server on our network has been affected.”

But the security researcher warned that NordVPN was ignoring the larger issue of the attacker’s possible access across the network. “Your car was just stolen and taken on a joy ride and you’re quibbling about which buttons were pushed on the radio?” the researcher said.

The company confirmed it had installed intrusion detection systems, a popular technology that companies use to detect early breaches, but “no-one could know about an undisclosed remote management system left by the [datacenter] provider,” said the spokesperson.

It’s also believed several other VPN providers may have been breached around the same time. Similar records posted online — and seen by TechCrunch — suggest that TorGuard and VikingVPN may have also been compromised, but spokespeople did not return a request for comment.


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21 Oct 2019

Veteran enterprise exec Bob Stutz is heading back to SAP

Bob Stutz has had a storied career with enterprise software companies including stints at Siebel Systems, SAP, Microsoft and Salesforce. He announced on Facebook last week that he’s leaving his job as head of the Salesforce Marketing Cloud and heading back to SAP as president of customer experience.

Bob Stutz Facebook announcement

Bob Stutz Facebook announcement

Constellation Research founder and principal analyst Ray Wang says that Stutz has a reputation for taking companies to the next level. He helped put Microsoft CRM on the map (although it still had just 2.7% marketshare in 2018, according to Gartner) and he helped move the needle at Salesforce Marketing Cloud.

Bob Stutz

Bob Stutz, SAP’s new president of customer experience. Photo: Salesforce

“Stutz was the reason Salesforce could grow in the Marketing Cloud and analytics areas. He fixed a lot of the fundamental architectural and development issues at Salesforce, and he did most of the big work in the first 12 months. He got the acquisitions going, as well,” Wang told TechCrunch. He added, “SAP has a big portfolio from CallidusCloud to Hybris to Qualtrics to put together. Bob is the guy you bring in to take a team to the next level.”

Brent Leary, who is a long-time CRM industry watcher, says the move makes a lot of sense for SAP. “Having Bob return to head up their Customer Experience business is a huge win for SAP. He’s been everywhere, and everywhere he’s been was better for it. And going back to SAP at this particular time may be his biggest challenge, but he’s the right person for this particular challenge,” Leary said.

Screenshot 2019 10 21 09.15.45

The move comes against the backdrop of lots of changes going on at the German software giant. Just last week, long-time CEO Bill McDermott announced he was stepping down, and that Jennifer Morgan and Christian Klein would be replacing him as co-CEOs. Earlier this year, the company saw a line of other long-time executives and board members head out the door including including SAP SuccessFactors COO Brigette McInnis-Day, Robert Enslin, president of its cloud business and a board member, CTO Björn Goerke and Bernd Leukert, a member of the executive board.

Having Stutz on board could help stabilize the situation somewhat, as he brings more than 25 years of solid software company experience to bear on the company.

21 Oct 2019

AT&T TV Now streaming service gets yet another price hike

AT&T’s streaming service is again raising prices. AT&T’s TV Now, the service previously known as DirecTV Now, is bumping up its prices yet again — by as much as 30%, Bloomberg reported and AT&T confirmed. Subscribers who were on the $50 Plus tier will now have to pay $65, while those on the $70 Max tier will pay $80 per month.

The prices will go into effect for both new and existing customers — meaning, no one is getting grandfathered into their current pricing, this time around.

The company had previously revamped its plans earlier this year, where it introduced the new Plus and Max tiers, and had raised rates. However, at that time, existing subscribers were able to stay on their current plans.

The company’s goal with the continual price hikes is to make its service more profitable even as its subscribers continue to defect. The streaming service ended 2018 with fewer customers (1.6 million) than it had in Q2 2018 (1.8m). It has now dropped even further to 1.3 million, as of Q2 2019 — a net loss of 168,000 subscribers. Meanwhile, AT&T’s pay TV subscribers are also bailing at rapid rates. In Q2 2019, AT&T reported a net loss of 778,000 premium TV subscribers, for example.

AT&T had originally lured in customers for its over-the-top streaming service with promotional discounts that weren’t sustainable. And, according to a new lawsuit, it allegedly faked some of its user growth, as well.

But for customers who originally signed up in 2016 for $35 per month, being slowed bumped up to now $65+ feels like a bait-and-switch. On Reddit, many are complaining about this second price hike of the year. Several are indicating they’ll switch to YouTube TV as a result. However, the one thing that’s helping to stem the tide of cancellations is the fact that AT&T TV Now’s new plans bundle in HBO. That makes AT&T’s service still more of a deal than competitive streamers who are cheaper, but don’t include HBO — elsewhere, the HBO add-on is typically in the range of $15/month.

AT&T isn’t the only live TV streaming to have raised pricing after launch. Hulu with Live TV, YouTube TV, Sling TV, and PlayStation Vue have all done so at various points, in order to cover rising programming costs. As a result, cord cutters who believed they could save money over cable or satellite TV by switching to over-the-top streams, are quickly finding out there’s not as much savings as they previously thought.

AT&T confirmed the price changes, adding that the changes go into effect on November 19th and impact customers with the legacy plans (who are also bumped up $10 per month), and the newer Plus and Max plans. Customers with Entertainment to Optimo Mas packages are not currently impacted.

“We’re adjusting our pricing to reflect the cost to deliver content to our customers. Customers can contact us at any time to review their plans or make account changes,” a spokesperson said.