Category: UNCATEGORIZED

22 Jul 2019

What Vidcon means for the future of social media platforms

This month marked the 10th annual VidCon, a digital content conference in Anaheim. VidCon is catered toward online creators, their fans and the brand marketers & entertainment companies that want to leverage their influence. The conference drew 75,000+ attendees last year (we’d guess it was even bigger this year!) with teens and tweens flying in from around the globe to meet their favorite online stars.

VidCon 2019 featured a rainbow slide, a terrifying snow cone/ice cream/cotton candy concoction called “The Unicorn,” and a giant Invisalign-branded gum and candy dispenser.

This was our second year at VidCon (read our recap of VidCon 2018 here). We’ve found there’s nothing quite like it if you want to understand teen culture, influencer marketing, and the future of social platforms, and are excited to share five of our key takeaways from the event. We’d love to hear from you about anything we missed — and subscribe to our weekly newsletter for more millennial and Gen Z insights.

TL;DR — here were our five main takeaways!

  1. TikTok is blowing up among Gen Z, and features much more diverse and “real” creators than other platforms. Brand marketers are still figuring out their place in the TikTok ecosystem, but some early adopters (like Chipotle) have had extremely strong results.
  2. Top creators are now talking openly about mental health, and how exhausting it is to constantly churn out unique and high-quality content. They’re encouraging new creators to seek more “stable” platforms (less algorithm-dependent) and try not to measure their self-worth in metrics.
  3. Creators are increasingly careful about brand partnerships, and many are choosing to launch their own products. Many creators have business managers to handle production, or can do it online reasonably easily. If done right, this yields higher revenue and a warmer reception from fans.
  4. Five years ago, digital creators aspired to be celebrities. Now celebrities aspire to be digital creators. Actors and athletes may soon be more famous among Gen Z for their digital work than for their “real jobs.”
  5. With new tech that democratizes content creation, everyone wants to be an influencer. VidCon has shifted from a pure fan event towards more of a strategic business conference, with aspiring influencers seeking tactical tips and new connections to grow their careers.

TikTok and a New Wave of “Authentic” Creators

Short-form video app TikTok, which hosts 15-second clips, was undoubtedly the star of VidCon — almost every TikTok panel was standing room only. Since launching in 2016, the app has grown to 500M monthly active users globally, far surpassing its predecessor, Musical.ly (which maxed out at 100M).

In contrast to perfectly curated Instagram feeds, the content on TikTok can be best described as “weird.” Videos are intended to induce a quick laugh or smile, often via comedy skits, dances, or odd skills that come in handy in TikTok’s “challenges.” At events like VidCon, where YouTubers travel with security and interact with fans through paid meet-and-greets, high-profile TikTokers are more accessible. They are also more diverse in apperance — many TikTokers look more like Billie Eilish than an Instagram model.

On the “Stars of TikTok panel,” only one of the six creators had hair that wasn’t bright blue or pink.

TikTok differentiates itself through a focus on authenticity — one of the company’s promo videos boldly claimed they want activists, not influencers. While YouTubers spend dozens of hours filming and editing, TikTokers say their work is more spontaneous. According to Chris Kerr of dance duo OurFire, “TikTok is all about living in the moment. Since it’s only 15 seconds, you just do it and put it up right away.” TikToker Andrea Okeke (“dreaknowsbest”) likes TikTok because she “doesn’t feel the need to fit in a box like I do on other platforms. I can just be Drea and they love me like that.” She purposefully keeps flaws in her TikTok videos for fans to find and share.

“People don’t realize the incredible diversity of the platform — all races, ages, careers. Firefighters, grandmas, nurses, 12 year olds. We see a lot of people who don’t have voices on other platforms.” — Vanessa Pappas, TikTok GM

The authenticity of TikTok also appeals to many brands trying to reach Gen Z. Chipotle senior digital manager Candice Beck said that when the company decided to incorporate more “relatable” content into their marketing strategy, they partnered with influencer David Dobrik on a TikTok #LidFlipChallenge that amassed 200M+ views. Chipotle had its top digital sales day ever after creating a “Dobrik” burrito. Other brands to check out on TikTok? Jimmy Fallon, the NBA, and the Washington Post.

Reaching a Breaking Point on Mental Health

The floodgates have opened for creators to talk about burnout and their struggles with mental health. In a panel on this topic, five creators swapped stories about having mental breakdowns after making it big on YouTube. Gabbie Hanna spoke about having panic attacks between takes of her videos, and collapsing in tears when she thought she wouldn’t meet her regular Wednesday upload timeline. Elle Mills said a frenetic schedule of constant tours and videos caused a “very public mental breakdown” less than a year after her ascent to stardom.

“It was hard for me because I felt like no one was going to watch, that everything I worked for was going to be taken away from me. That’s why a lot of YouTubers have breakdowns, they have that mentality.” — Elle Mills

Being a YouTuber may look easy and fun, but top creators have grueling schedules. Natalie Alzate, who has nearly 8M subscribers on her channel Natalies Outlet, works 18 hours a day to produce two videos every week. She warned aspiring creators that it’s “very taxing on your body,” and said that she eventually wants YouTube to be a hobby instead of her full-time job. Mikey Murphy, who started on YouTube at age 11, said that at 21 he is “out of ideas.” He referred to the YouTube standard of weekly videos as “unhealthy,” and advised young creators to ignore analytics because “it will crush you.”

Beyond the typical mean comments, creators who speak openly about mental health also feel pressure in representing a community of fans who face the same struggles. YouTuber Natalie Wynn (ContraPoints), who makes videos about topics like gender, race, and politics, said that her most angry comments come from fellow trans people — which is “really hard” to deal with. Because YouTube’s algorithms distribute her videos far beyond her own fans, she also feels a responsibility to make content that appeals to viewers with negative views of trans people — which means she has to adopt a playful and “non-threatening” tone even when discussing serious issues.

Creators Rethink #SponCon, Build Their Own Brands

Sponsored content has long been a tricky subject for creators — when they get big enough to start signing brand deals, many are accused of “selling out” or being “inauthentic.” Fans complain that they can’t trust a creator’s product recommendations or reviews if they’re being paid by the brand, leading some creators to disguise the fact that a post is sponsored (which is illegal).

We noticed a shift this year in how creators are thinking about sponsorships — many said they no longer consider a brand’s proposal unless they are already a genuine fan of the brand and their viewers know it. Sierra Schultzzie, a fashion YouTuber with 580k subscribers, said that her fans often tagged American Eagle in her posts because she talked about their jeans so frequently. When she signed a deal with the company, her viewers celebrated the fact that the brand “finally” sponsored her.

Sierra Schultzzie’s fans are receptive to her American Eagle sponsorship (and trust her endorsement of the products) because they know she loved the brand before she was paid.

Marketers have also had to get comfortable with giving up creative control of their campaigns. Creators know what kind of content will resonate, and don’t want to read a list of corporate talking points. Matt Nelson, the human behind WeRateDogs, did a Twitter campaign with Disney to promote the new Dumbo movie. He credits the campaign’s success to the fact that “Disney respected me as a creator enough to let me do my own posts with what I knew my audience wanted” — he “obsesses” over his analytics and knows what will perform well. He ended up getting 22k comments and nearly 70k likes on a post seeking dogs with ears like Dumbo.

Many creators are taking it a step further by launching their own brands. With new services that help anyone spin up a product line, this option is no longer limited to YouTube’s mega stars. 15-year-old Fiona Frills, who has 800k YouTube subscribers, said it was an easy decision to launch her own skincare line when she couldn’t find clean products on Sephora or Ulta for her acne. Shaun McKnight, whose wife runs the Cute Girls HairstyleYouTube channel (5.6M subscribers), said the family turned down lucrative hair brand deals for almost ten years because they eventually planned to launch their own brand.

McKnight’s twin daughters Brooklyn and Bailey (6.2M subscribers) also launched their own mascara brand — which was developed in-house and partially funded on Indiegogo. They have since extended their brand to other beauty and accessory products, and have sold more than 250,000 sets of scrunchies. If an influencer can launch their own products, why would they take a partnership deal where they get a smaller cut of the revenue, have limited creative control, and get accused of “selling out”?

Celebrities Now Aspire to be Creators

Over the past five years, we’ve seen influencers replace “traditional” celebrities for Gen Z. This generation is watching significantly less linear TV than older generations and spending more time on their phones — the average Gen Zer watches 3.4 hours of online video every day. It’s not surprising that Gen Z’s biggest stars are more likely to emerge on YouTube, Instagram, or TikTok than on Disney or Nick. And we’re now seeing mainstream celebrities become digital creators to make themselves more Gen Z-friendly.

Will Smith is a perfect example of this — he created an Instagram account in late 2017 and a YouTube channel last year. He’s now a prolific poster, participating in viral teen challenges and earning the title “King of Instagram.” Professional athletes are also making use of social media to grow their younger fan base. Asani Swann, who leads Carmelo Anthony’s business strategy team, said that Anthony spends time on YouTube watching “a lot of things that kids watch.” He’s constantly asking himself, “How are the kids consuming content? He wants to figure out what the next move is.”

In Will’s Instagram post celebrating 10M followers, he noted that he avoided social media for most of his career because “in the past, to be a movie star you needed mystery and separation.”

YouTuber Kristopher London, who has nearly 3M followers across two accounts, has become famous on the platform for his basketball content. Though he’s never played professionally, he’s often more popular than NBA players at events like the NBA Summer League. He noted that it’s always strange to him when “kids are coming to take photos with me and not acknowledging the NBA players,” and he gets inbounds from the biggest names in the NBA about appearing in his videos.

Olympic gymnast Shawn Johnson now posts twice a week on YouTube — she regularly does challenges, “storytime” videos, and collabs with teen influencers. She’s also not afraid of a clickbait-y title. It’s not hard to imagine a world where kids know Shawn Johnson as a YouTuber, not an athlete!

From Idolizing Creators to Empowering a New Generation

In years past, VidCon was mostly a fan fest, an opportunity for viewers to interact with their favorite creators. There’s still a lot of that behavior, but now many of these fans are aspiring creators themselves. VidCon’s young attendees seem to be increasingly focused on learning how to build a career online — one recent study found that “influencer” is now the #2 dream job for 11–16 year olds in the UK.

This shift was reflected in the setup of VidCon itself — the “creator” sessions, largely focused on practical advice for making content and building an audience, were moved to larger venues. At a creator session on live-streaming featuring model/IRL streamer Bri Teresi, attendees skipped past the typical “fan” questions and instead quizzed Bri on what tech she uses for overlays in her streams, what platform is the most friendly to new streamers, and how to avoid doxxing.

Brands have caught on to the fact that lifting up aspiring creators will increase engagement on their own content. Michelle D’Antonio, a senior manager at e-sports media platform Super League Gaming, said that encouraging young gamers has been key to growing the brand. Super League now hosts a daily show called Spawn Point that curates the best user-submitted plays: “[Kids now] are like, ‘Ninja’s great, but I want this to be about me.’ ”

This shift was also apparent in VidCon’s giant Expo Hall, where brands set up booths to draw in young consumers. Most of the influencer merch booths were surprisingly empty, except for the hour or so when the influencer themselves stopped by. The more popular booths allowed visitors to record their own content and potentially draw an audience — brands from Barbie to Best Buy created pseudo-studios to put attendees in the creator seat. These booths often had lines with dozens or even hundreds of people waiting in line for their chance in the spotlight. We expect this trend to accelerate, and are therefore particularly excited about new tech that helps consumers create content and grow businesses around it (we call this “creator infrastructure”).

Dozens of kids lined up for the chance to play video games on an esports truck in front of a live audience, with their gameplay broadcast on huge screens that mimicked a professional event.

And finally, we wanted to wrap up with a few of the more surface-level trends we noticed at the VidCon expo hall and in the “community” sessions:

22 Jul 2019

In spite of slowing growth, Microsoft has been flexing its cloud muscles

When Microsoft reported its FY19, Q4 earnings last week, the numbers were mostly positive, but as we pointed out, Azure earnings growth has stalled. Productivity and business, which includes Office 365, has also mostly flattened out. But slowing growth is not always as bad as it may seem. In fact, it’s an inevitability that once you start to reach Microsoft’s market maturity, it gets harder to maintain large growth numbers.

That said, AWS launched the first cloud infrastructure service, Amazon Elastic Compute Cloud in August, 2006. Microsoft came much later to the cloud, launching Azure in February, 2010, but so were other established companies in Microsoft’s market share rearview. What did it do differently to achieve this success that the companies chasing it — Google, IBM and Oracle — failed to do? It’s a key question.

Let’s look at some numbers

For starters, let’s look at the most numbers for Productivity & Business Processes this year. This category includes all of its commercial and consumer SaaS products including Office 365 commercial and consumer, Dynamics 365, LinkedIn and others. The percentage growth started FY19 at 19% but ended at 14%

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When you look at just Office365 commercial earnings growth, it started at 36% and dropped down to 31% by Q4.

22 Jul 2019

Daily Crunch: Microsoft invests $1B in OpenAI

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. Microsoft invests $1 billion in OpenAI in new multiyear partnership

OpenAI was founded three years ago by Elon Musk, Sam Altman and others with the aim of performing research and development that steers artificial intelligence in a “friendlier” direction.

Its deal with Microsoft is an “exclusive computing partnership,” with new AI technologies built for Microsoft’s Azure platform and existing OpenAI services ported over.

2. UVeye snaps up $31M for its hyper-detailed, AI-based drive-thru vehicle-scanning platform

UVeye’s technology can be used to assess the state of rental and used cars, help with insurance adjustments, inspect vehicles to diagnose mechanical or other problems and as part of wider security efforts.

3. Amazon is opening a pair of new robotic fulfillment centers in Ohio

The two warehouses will be located in the north of the state, in Akron and Rossford, respectively. They’ll function much like Amazon’s other shipping centers, providing a collaborative workspace between human employees and the company’s growing army of shipping robots.

logo for Slack is displayed on the a monitor at the New York Stock Exchange

NEW YORK, NY – JUNE 20: The logo for Slack is displayed on the a monitor at the New York Stock Exchange (NYSE), June 20, 2019 in New York City. (Photo by Drew Angerer/Getty Images)

4. Slack speeds up its web and desktop client

Slack’s latest update doesn’t introduce any new features or a new user interface. Instead, it’s almost a complete rebuild of the underlying technology that makes its web and desktop experiences work.

5. Cyber threats from the US and Russia are now focusing on civilian infrastructure

Although both sides have been targeting each other’s infrastructure since at least 2012, according to The New York Times, the aggression and scope of these operations now seems unprecedented.

6. How to go to market in middle America

There comes a time for many startup companies where they either realize they need to do a nationwide rollout, or they need to actively target buyers in the middle of the country. (Extra Crunch membership required.)

7. This week’s TechCrunch podcasts

The latest episode of Equity looks at whether it’s possible to predict the next generation of unicorns, while Original Content reviews the brilliantly titled Netflix special “Frankenstein’s Monster’s Monster, Frankenstein.”

22 Jul 2019

Google Cloud makes it easier to set up continuous delivery with Spinnaker

Google Cloud today announced Spinnaker for Google Cloud Platform, a new solution that makes it easier to install and run the Spinnaker continuous delivery (CD) service on Google’s cloud.

Spinnaker was created inside Netflix and is now jointly developed by Netflix and Google. Netflix open-sourced it back in 2015 and over the course of the last few years, it became the open-source CD platform of choice for many enterprises. Today, companies like Adobe, Box, Cisco, Daimler, Samsung and others use it to speed up their development process.

With Spinnaker for Google Cloud Platform, which runs on the Google Kubernetes Engine, Google is making the install process for the service as easy as a few clicks. Once up and running, the Spinnaker install includes all of the core tools, as well as Deck, the user interface for the service. Users pay for the resources used by the Google Kubernetes Engine, as well as Cloud Memorystore for Redis, Google Cloud Load Balancing and potentially other resources they use in the Google Cloud.

could spinnker.max 1100x1100

The company has pre-configured Spinnaker for testing and deploying code on Google Kubernetes Engine, Compute Engine and App Engine, though it will also work with any other public or on-prem cloud. It’s also integrated with Cloud Build, Google’s recently launched continuous integration service and features support for automatic backups and integrated auditing and monitoring with Google’s Stackdriver.

“We want to make sure that the solution is great both for developers and DevOps or SRE teams,” says Matt Duftler, Tech Lead for Google’s Spinnaker effort, in today’s announcement. “Developers want to get moving fast with the minimum of overhead. Platform teams can allow them to do that safely by encoding their recommended practice into Spinnaker, using Spinnaker for GCP to get up and running quickly and start onboard development teams.”

 

22 Jul 2019

Uber tests monthly subscription that combines Eats, rides, bikes and scooters

Uber is actively testing a monthly subscription pass that combines rides, Eats, bikes and scooters. In this pilot phase, Uber is testing a few different iterations in San Francisco and Chicago but each version includes a fixed discount on every ride, free Uber Eats delivery and free JUMP (bikes and scooters) rides. The pass costs $24.99 per month.

Uber Pass landing page for press 1In other cities, Uber is testing lower-priced passes that offer discounted rides and free delivery on Eats orders above a certain amount.

“From meals to wheels and everything in between, we’re always looking for ways to make Uber the go-to option for your everyday needs,” an Uber spokesperson said in a statement to TechCrunch.

This comes after TechCrunch first reported leaked screenshots from Uber’s Android app showing an Uber Eats pass in March, and imagined a scenario where Uber combined Eats with its Ride Pass product.

Uber first launched Ride Pass last October as a way for people to consistently pay lower prices on individual rides for a monthly fee. Lyft offers a similar monthly subscription product called All-Access.

But this is the first time Uber is combining all of its consumer offerings into one monthly subscription. A challenge in the micromobility space is product differentiation and brand loyalty, so this is a smart way for Uber to get customers to fully commit to its multi-modal platform. Imagine you’ve bought Uber’s monthly combo pass and are looking for a bike or scooter. You walk by a Lyft bike, but then open up your Uber app to see a JUMP bike isn’t all that far away. My bet is that you’d walk a bit more for that bike since you’ve already paid for it.

Meanwhile, JUMP is experiencing competition in the dockless e-bike space for the first time in San Francisco. On Friday, Lyft deployed its e-bikes that can be both docked and dockless, so it’s notable that Uber is piloting this product in SF. Uber’s combo plan also creeps into Postmates’ territory, which offers a monthly subscription product for unlimited free deliveries. As my colleague Josh Constine has previously noted, this could be a very lucrative move for Uber, as it locks customers into spending more money on Uber.

22 Jul 2019

Apple releases iOS 12.4 with software support for Apple Card

While iOS 13 is right around the corner with a ton of new features, it isn’t quite ready just yet. Apple has just released iOS 12.4, a new stable update. There aren’t many radical changes, but this is the first version that theoretically supports the Apple Card.

Apple has been testing its credit card for a few weeks now. According to Bloomberg, Apple’s retail employees have been able to sign up to the Apple Card.

As a reminder, Apple has partnered with Goldman Sachs on a credit card for U.S. customers. When you sign up, you receive a Mastercard credit card that you control from the Wallet app.

In addition to a list of your most recent transactions, you can see a breakdown of your purchases by category. You get 1% back when you pay with your card, 2% if you pay using Apple Pay and 3% if it’s an Apple purchase.

Cash back is credited directly on your Apple Cash card. You can pay for things using Apple Pay, make a payment on your Apple Card or transfer it to your bank account.

The Apple Card was originally announced back in March. The company said that it would be available this summer. Now that iOS 12.4 is available, the release date shouldn’t be too far off.

iOS 12.4 also features a new migration tool so that you can wirelessly transfer data from one iPhone to another. It should make it easier to switch to a new iPhone, especially if you don’t use iCloud.

With this update, you can also control your Apple News+ content more granularly. For instance, you can clear downloaded magazines, check your downloaded issues and more.

Today’s update also re-enables Walkie Talkie on the Apple Watch. The company had to temporarily disable the feature due to a vulnerability.

Don’t forget to backup your iPhone to iCloud or iTunes before updating. Then head over to the Settings app, tap General and Software Update.

22 Jul 2019

Apple fixes Walkie Talkie app vulnerability in watchOS update

If you are, for some reason, an avid Walkie Talkie user on the Apple Watch, you will be pleased to learn that the functionality is back in the latest watchOS update today. The watchOS 5.3 release notes specify that the update “[p]rovides important security updates including a fix for the Walkie-Talkie app.”

The feature was notably disabled nearly two weeks ago after Apple discovered a vulnerability, one which was unspecified but was clearly serious enough for them to quickly pull one of the hallmark updates of watchOS 5.

If you’re not familiar, the Walkie Talkie app allows two users to send short push-to-talk chat messages to one another. It’s a nice way to reduce the complexity of using the Apple Watch as a full-features communications tool, speeding up the process of sending messages, rather than using voice transcription.

The update is available now.

22 Jul 2019

You can now get your own artistic portrait in the style of a master thanks to AI

A new project called AI Portraits from MIT’s IBM Watson AI Lab can capture your essence in the artistic style of some of the world’s great masters, using AI powered by a generative adversarial network (GAN) to actually rebuild your mug from scratch, which goes above and beyond the old trick may other apps used previously of essentially paintifying your existing photo.

The tool, as described by The Verge, uses a database of over 45,000 iconic portraits from history, including works in various media. The AI will then determine which style to employ based on the specific portrait you upload, and reconstruct your image in an approximation that proves very faithful to the originals upon which they’re based. Different photos will provide different results in terms of style used, so be sure to upload a few.

Screen Shot 2019 07 22 at 9.24.52 AM

Researchers also note that your sources images are deleted immediately once they’re used to generate the results after you upload, so there should be no privacy issues here. The website does have a steady stream of generated photos uploaded by other users, but the digital paintings aren’t really photo-accurate anyway – that’s the point. Plus there’s not identify information attached to the AI-generated images.

ai portrait gan progress

This is, overall, a super interesting way to kill some time and get some interesting, if a bit pretentious profile photos for your various online presences. It may throw an error because it’s experiencing a high volume of interest right now, but just reload and try again and you should get a result without issue the next time around.

Also, a bit of a bummer note – it doesn’t work on dogs or cats, at least in my testing.

22 Jul 2019

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

Pinterest has introduced emotional wellness activities tailored for the millions of users searching the visual pinboard for emotional health and related topics.

Created in partnership with Brainstorm, the Stanford Lab for Mental Health Innovation, Vibrant Emotional Health and the National Suicide Prevention Lifeline, the activities, meant for users to complete when they are feeling anxious, sad or stressed, include deep-breathing and self-compassion exercises.

Emotional well being activites 1

The option to engage with the new activities pops up when a Pinterest user searches for “stress quotes,” “work anxiety” or other terms that indicate they might be feeling down, the company explained.

The look and feel of the activities is different from the rest of Pinterest. The company wants users to understand their use of these activities are private and not connected to their account; no recommendations or ads will be based on their use of the new resources and Pinterest doesn’t track who is using the tools — rather the activity is stored anonymously using a third-party service. Pinterest declined to disclose the name of the service, but said it was a “reputable leader in third-party analytics.”

“People come to Pinterest to discover ideas, get inspired and focus on themselves, their interests, their futures,” writes Pinterest product manager Annie Ta. “One of the main ways people find inspiration is through Search, from summer activities to try to creative ways to express yourself. But we know that life isn’t always so inspiring, and things on the internet aren’t either.”

The company will fully roll out the new product in the coming weeks.

22 Jul 2019

Free stock trading app Robinhood raises $323M at $7.6B valuation

Robinhood, the popular free stock trading app, this morning announced a massive $323 million round led by DST Global.

The Series E financing values the Menlo Park-headquartered business at $7.6 billion, up from its Series D valuation of more than $5 billion.

Ribbit Capital, NEA, Sequoia and Thrive Capital have also participated in the round, which the company says it will use to “keep pursuing our mission of democratizing finance for all.”

Robinhood, founded in 2013, has added several new features to its platform in the last year to justify the valuation increase, including its own clearing system, Clearing by Robinhood. The business also acquired a media startup to launch Robinhood Snacks, which provides short tidbits of financial news.

Robinhood has raised more than $860 million in venture capital funding to date.