Netflix is testing a new way to help users find TV shows and movies they’ll want to watch with the launch of a “Collections” feature, currently in testing on iOS devices. While Netflix today already offers thematic suggestions of things to watch, based on your Netflix viewing history, Collections aren’t only based on themes. According to Netflix, the titles are curated by experts on the company’s creative teams, and are organized into these collections based on similar factors — like genre, tone, storyline, and character traits.
This human-led curation is different from how Netflix typically makes its recommendations. The streaming service is famous for its advanced categorization system, where there are hundreds of niche categories that go beyond broad groupings like “Action,” “Drama,” “Sci-Fi,” “Romance,” and the like. These narrower subcategories allow the streamer to make more specific and targeted recommendations.
Netflix also tracks titles that are popular and trending across its service, so you can check in on what everyone else is watching, as well.
The new Collections feature was first spotted by Jeff Higgins, who tweeted some screenshots of the addition.
If you’ve been opted in to the test, the Collections option is available at the top right of the app’s homepage — where My List would have been otherwise.
Netflix Collections is your new way of finding what you want to watch, fast. pic.twitter.com/kKfciBWCg4
— Jeff Higgins Likes Umbrella Beach Drinks (@ItsJeffHiggins) August 23, 2019
The suggestions are organized into editorial groups, with titles like “Let’s Keep It Light,” “Dark & Devious TV Shows,” “Prizewinning Movie Picks,” “Watch, Gasp, Repeat,” “Women Who Rule the Screen,” and many more.
You can follow the Collection from the main screen, or you can tap into it to further explore its titles.
If you tap a collection that interests you, it smoothly expands to the show the thumbnails of the suggested titles below a header that explains what the collection is about. You can choose to follow the suggestion from here too, which presumably ties into Netflix’s notification system.
Here's a look at the smooth transitions in the new Netflix Collections pic.twitter.com/5xPYRheCqn
— Jeff Higgins Likes Umbrella Beach Drinks (@ItsJeffHiggins) August 23, 2019
Collections are also found on the app’s Home page, for those who have access to the new feature.
“We’re always looking for new ways to connect our fans with titles we think they’ll love, so we’re testing out a new way to curate Netflix titles into collections on the Netflix iOS app,” a Netflix spokesperson confirmed to TechCrunch. “Our tests generally vary in how long they run for and in which countries they run in, and they may or may not become permanent features on our service.”
This isn’t the first time Netflix has toyed with organizing content suggestions into Collections. The company’s DVD service (yes, it still exists), had rolled out a similar Collections feature in its own mobile app.
This test comes at a time when Netflix is working on features to better retain existing subscribers amid increased competition, including that from upcoming rivals like Disney+ and Apple TV+, among others. On this front, it also recently launched a feature allowing users to track new and soon-to-launch releases, as a means of keeping subscribers anticipating what comes next.
Netflix said Collections is only available on iOS. As a test, it won’t show to all users.
Porsche has taken the wraps off of the interior of the all-new, all-electric Porsche Taycan ahead of its world debut September 4. Gone are the buttons and the clutter. This is a minimalist and sleek interior for the modern digital age.
Porsche released Thursday several images of the interior. Earlier this week, TechCrunch was among numerous media outlets that got an up close view of the interior (along with some other things we can’t talk about) and a chance to play around with the infotainment system.
Porsche didn’t just slap a bunch of screens in and call it a day. Here are the inside details and what stood out.
At first glance, the dashboard might give viewers a twinge of deja vu. And they wouldn’t be wrong.
Designers used the dashboard from the 1963 Porsche 911 as inspiration. And that’s evident in the pictures below, which shows a clean and sleek dashboard.
The 911 DNA is evident. But this isn’t some throwback. This is a modern vehicle with its own design story, which includes horizontal digital screens that are sandwiched between the upper and lower dash lines and stretch all the way over to the passenger seat.
The elevated center console stretches down from the horizontal central screen to two air vents that are not the mechanically-operated louvres found most vehicles today. Instead, the direction of the airflow is controlled digitally via an 8.4-inch touch panel that is located just below the central screen. This touch panel houses the climate control system and includes a track pad with haptic feedback. The trackpad can also be used for quick address inputs.
Tucked under the touch panel is a small flat space to place a wallet or phone. Two cups holders and then a storage unit, which is equipped with wireless charging and two USB ports, completes the center console.
Porsche’s design team repeatedly talked to TechCrunch about the emphasis on the driver. And that shows. (The design team worked on the interface alone for 3.5 years.) Although there are plenty of passenger features here as well. From the driver’s seat, everything is in reach and without constantly looking over to the center display. Natural voice integration courtesy of Nuance is activated by a “Hey Porsche” trigger or simply pressing the voice button on the central display or dedicated button on the steering wheel.
The minimalist design continues to the all-digital instrument cluster. This free-standing panel, which houses the instrument cluster, has a slight curve to it. Interestingly, it doesn’t have the standard cowl or lip that is often used to prevent reflection. Instead, Porsche used glass coated with a vapor-deposited, polarizing filter.
Inside the 16.8-inch cluster display, the driver will see three round instruments that display information. Drivers can customize what each of these instruments displays. Drivers can also remove the information for a more streamlined look in “pure mode.”
This pure mode displays only essential information such as speed, navigation or traffic sign recognition (so you know what the speed limit is). Pure mode, which manages to give the interior an even more minimalist look, could be a handy and fun feature for a Taycan owner on track day.
Perhaps one of the most functional features is the map mode. The map replaces the central power meter in this mode. But it really becomes useful when “full map mode” is turned on, which extends the map across the full display. TechCrunch wasn’t allowed to take photos of the interior during its visit to Porsche North America headquarters, so readers will have to imagine it a digital map taking up most of the instrument cluster.
Finally, just to the left and right of the main instrument cluster, drivers will see small, touch-control fields at the edges of the screen for operating the light and chassis functions. One of these buttons is a trigger key, which lets drivers customize what it operates.
The Porsche Taycan has several screens. Oh, so many screens. Beyond the digital instrument cluster is a horizontal 10.9-central display. Directly below this is a tilted screen that houses climate control as well as a digital track pad that gives haptic feedback.
From the central screen and moving to the right, is a display for the passenger. The passenger display cannot be turned on if the driver is the only one in the vehicle, according to Oliver Fritz, director of driver experience at Porsche.
Porsche is experimenting with streaming video on the passenger display. This likely won’t be available when Porsche begins delivery before the end of the year. But could be rolled out in future over-the-air software updates. For now, the company is testing technology that would prevent the driver from being able to view the screen. Fritz emphasized that this idea was still in testing and Porsche won’t roll out streaming video unless it’s sure the driver cannot see the screen.
Porsche designers have made “dark mode” the default in the instrument cluster and rest of the infotainment system. That can be changed to a white background, Porsche said. TechCrunch doesn’t recommend that though. The dark mode, and the ability to turn off the central 10.9-inch infotainment display and optional passenger one, should let drivers enjoy the road and escape the annoying “blue light” that is emanates from so many vehicles these days.
Porsche will offer a number of color combinations in the interior, including an all-black matte look, which TechCrunch viewed. The company’s design team didn’t reveal the total number of interior color combinations, but they did list a few. There will be four exclusive interior colors for the Taycan, a black-lime beige, blackberry, Atacama beige and Meranti brown. An optional interior accent package will include black matte, dark silver or neodyme, which is like a champagne gold color.
The doors and center consoles can have wood trim, matte carbon, embossed aluminum or fabric.
The company is also offering a leather-free trim interior, which includes the steering wheel. Porsche designer Thorsten Klein was careful not to call it vegan. He told TechCrunch that even synthetic materials can be treated using animal products. Porsche is pushing to source materials that don’t use these processes, but until then Porsche won’t use the vegan term.
Earlier this week, Porsche announced it will integrate Apple Music into the Taycan, the first time the music streaming service has been offered as a standalone app within a vehicle.
But Apple Music is just one of the many features in the infotainment system. The user interface is laid out to always show a home, vehicle and messages button, which will lists notifications coming into the vehicle. The voice feature can also be used so the driver doesn’t need to glance at the screen.
Other buttons on the central screen include navigation, phone, settings, climate, news, calendar, charging information, weather and Homelink, which can be used to open the owner’s garage door.
Netflix is still the No. 1 subscription streaming service in the U.S., according to a new report from eMarketer, but rivals including Amazon Prime Video and Hulu are starting to cut into its market share. The analyst firm forecasts 182.5 million U.S. consumers will subscribe to over-the-top streaming services this year, or 53.3% of the population. Netflix is still the too choice here, with 158.8 million viewers in 2019 and it is continuing to grow. However, its share of the U.S. over-the-top subscription market will decline even as its total subscriber numbers climb, the report said.
Though Netflix announced in Q2 the first drop in U.S. users in nearly a decade, eMarketer says Netflix will see strong growth throughout the rest of the year — up 7.6% over 2018. This will be driven by the new seasons of popular series like Orange is the New Black and Stranger Things, as well as Academy Award-winning director Martin Scorsese’s new movie, The Irishman.
But Netflix is no longer the only option for streaming video these days. Back in 2014, it had 90% of the market. In 2019, its share will have shrunk to 87%.
This decline in market share is attributed to the rise of rival services, like Hulu and Prime Video.
Hulu, for example, is estimated to reach 75.8 million U.S. viewers this year, or 41.5% of subscription service users. The number of viewers will also increase by 17.5% in 2019, but this is a drop from 2018’s big growth spurt of 49.6%
Prime Video, meanwhile will remain the second-largest subscription over-the-top video provider in the U.S. in 2019, the report says, with 96.5 million viewers. That’s up 8.8% over last year.
The firm estimates Prime Video will reach a third of the U.S. population by 2021.
Netflix market share dominance is about to face new threats as well, most notably from the Disney-Hulu-ESPN bundle, which is priced the same as a standard U.S. Netflix subscription.
“Netflix has faced years of strong competition for viewers, coming from streaming video platforms, pay-TV services, and even video games,” said eMarketer forecasting analyst Eric Haggstrom. “While there is no true ‘Netflix killer’ on the market, Disney’s upcoming bundle with Disney+, Hulu and ESPN+ probably comes closest. Netflix’s answer has been to stick to what has made it the market leader—outspending the competition on both licensed and original content, offering customers a competitive price,” he added.
Disney isn’t the only one with a new streaming service in the works, though.
Apple TV+ is poised to launch later this year, and is said to be spending $6 billion on content — far more than the $1 billion that had been reported. It’s also said to be considering a competitive $9.99 per month price point.
NBCUniversal and AT&T WarnerMedia are also poised to enter the market, the latter with HBO Max. And following the CBS-Viacom merger, the combined company is looking to beef up its own platforms, CBS All Access and the ad-supported Pluto TV, with the newly acquired content.
“The market for streaming video has been driven by an explosion in high-end original content and low subscription costs relative to traditional pay TV,” Haggstrom noted. “A strong consumer appetite for new shows and movies has driven viewer growth for services like Netflix, Hulu and Amazon Prime Video, as well as the broader market.”
2019 has been a breakout year for podcasting. According to Edison Research’s Infinite Dial report, more than half of Americans have now listened to a podcast, and an estimated 32% listen monthly (up from 26% last year). This is the largest yearly increase since this data started being tracked in 2008. Podcast creation also continues to grow, with more than 700,000 podcasts and 29 million podcast episodes, up 27% from last year.
Thanks to this growing listener base, big companies are finally starting to pay attention to the space — Spotify plans to spend $500 million on acquisitions this year, and already acquired content studio Gimlet, tech platform Anchor, and true crime network Parcast for a combined $400 million. In the past week, Google added playable podcasts to search results, Spotify released an analytics dashboard for podcasters and Pandora launched a tool for podcasters to submit their shows.
We’ve been going to Podcast Movement, the largest annual industry conference, for three years, and have watched the conference grow along with the industry — reaching 3,000 attendees in 2019. Given the increased buzz around the space, we were expecting this year’s conference to have a new level of energy and professionalism, and we weren’t disappointed. We’ve summarized five top takeaways from the conference, from why podcast ads are hard to scale to why so many celebrities are launching their own shows.
We’ve officially entered the age of celebrity podcasters. After early successes like “WTF with Marc Maron” (2009), Alec Baldwin’s “Here’s The Thing” (2011) and Anna Faris’ “Unqualified” (2015), top talent is flooding into the space. In 2017, 15% of Apple’s top 20 most-downloaded podcasts of the year were hosted by celebrities or influencers — this jumped to 32% of the top 25 in 2018. And of all the new shows that launched in 2018, 48% of the top 25 were celebrity-hosted.
Though podcasts are undermonetized compared to other forms of media, talent agents now consider them to be an important part of a well-rounded content strategy. Dan Ferris from CAA tells his clients to think of podcasting as a way of connecting with fans that is “much more intimate than social media.” Podcasts also help celebrities find a new audience. Ben Davis from WME said that while his client David Dobrik has a smaller audience on his podcast than on YouTube (1.5 million downloads per episode versus 6 million views per video), the podcast helps him reach a new group of listeners who stumble upon his show on the Apple Podcast charts.
While some podcast veterans grumble about the rise of celebrity talk shows, famous podcasters are good for the industry as a whole. Advertisers are drawn to the space by the opportunity to get to access A-list talent at lower prices. One recent example is Endeavor Audio’s fiction show “Blackout,” which starred Rami Malek, who was fresh off an Oscar win. Endeavor’s head of sales, Charlie Emerson, said brands might have to sign a “seven or eight-figure deal” to advertise alongside Malek’s content in other forms of media. Other podcasters also benefit from new listeners brought into the medium by their favorite stars — a Westwood One survey in fall 2018 found that 60% of podcast listeners report discovering shows via social media, where celebrities and influencers have huge existing audiences to push content to.
Paid listening apps represent a fairly small percentage of podcast listenership, with production platform Anchor estimating that Apple Podcasts and Spotify control more than 70% of listenership. A venture-backed company called Luminary is trying to change this — it raised $100 million to launch a “Netflix for podcasts” this spring. Consumers pay $7.99/month to access Luminary-exclusive shows alongside podcasts that are free on other apps. Because podcasts have RSS feeds, distributors like Luminary can easily grab free content and put it behind a paywall. The platform, not the creator, benefits from this monetization.
Within days of Luminary’s launch, prominent podcasters and media companies (The New York Times, Gimlet and more) requested their shows be removed from the app. It’s interesting to note that YouTube has a similar premium plan — for $11.99/month, users can access and download ad-free videos. Unlike Luminary, however, YouTube, pays creators a cut of the revenue from these subscriptions based on how frequently their content is viewed.
Unsurprisingly, creator sentiment is more positive toward platforms like Spotify and Pandora . Though these companies do make money from premium subscribers who listen to podcasts, creators can choose whether or not to submit their shows. And podcasters benefit from making their shows discoverable to the existing user base of these platforms, which already dominate “earshare.” Spotify alone has 232 million MAUs, which dwarfs the 90 million people in the U.S. who listen to a podcast monthly.
Podcast ad revenue has been scaling quickly, with $480 million in spend last year and a projected $680 million this year. Over the past four years, ad revenue has scaled at a 65% CAGR, and this growth is expected to continue. In its early days, the podcast ad market has largely been driven by D2C brands — you’ve probably heard hundreds of Casper, Blue Apron and Madison Reed ads. However, bigger brands are also starting to enter podcasting (Geico, Capital One and Progressive made the top 10 list for June 2019) due to the growing audience scale and increased precision around targeting and attribution.
While many attendees were excited by the massive growth in ad revenue, others worried that it may kill what makes podcasting special. They’re particularly concerned that podcasts may go the way of online video, with annoying, generic, low CPM ads. Podcast hosts typically read their own ads, and are often true fans of the product — they share personal stories instead of reciting brand talking points. This results in premium CPMs compared to most digital media — AdvertiseCast’s 2019 survey found an average CPM of $18 for a 30-second podcast ad and $25 for a 60-second ad, more than 2x the average CPM on other digital platforms.
While these ads are effective, they’re time-consuming and expensive to produce. Big brands interested in podcast ads often expect to reuse radio spots — they aren’t used to the process of crafting and approving a host-read ad that may only reach 10,000 listeners. Podcasters, meanwhile, value their trust with listeners and don’t want to spam them with loud, unoriginal radio ads. The tension between maintaining the quality of ads while scaling quantity was an underlying theme of most monetization discussions, and industry veterans disagree on how it will play out.
Despite the growth in ad revenue and relatively high CPMs, the industry is significantly undermonetized. Using data from Nielsen, IAB and Edison, we calculated that podcasts monetize through advertisements at only $0.01 per listener hour — less than 10 times the rate of radio. Podcast monetization per listener hour has increased over the past year, up 25% by our calculations, but still substantially lags all other forms of media.
Why are podcasts so undermonetized? Unlike many other forms of media, the dominant distribution platform (Apple Podcasts) has no ad marketplace. Creators have historically had to approach brands themselves or sign with podcast networks to construct custom ad deals, and the “long tail” of podcasters were unable to monetize. This is finally changing. Anchor, which reported in January that it powers 40% of new podcasts, has an ad marketplace that has doubled the number of podcasts that are running ads. Other popular platforms like Radio Public have launched programs for small podcasters to opt-in to ad placements.
The second major hurdle in monetization is attribution. Podcasts have historically monetized through direct response campaigns — a podcaster provides a special URL or promo code for listeners to use when making a purchase. However, many people listen to podcasts when exercising or driving, and can’t write down the promo code or visit the URL immediately. These listeners might remember the product and make a purchase later, but the podcaster won’t get the attribution. Thomas Mancusi of Audioboom estimated that this happens in 50-60% of purchases driven by podcast ads.
Startups are trying to bring better adtech into podcasting to fix this issue. Chartable is one example — the company installs trackers to match a listener’s IP address with a purchaser’s IP address, allowing podcasters to claim attribution for listeners who don’t use their URL or promo code. Chartable currently runs on 10,000 shows, and the early results are so promising that ad agencies expect to see higher CPMs and significantly more spend in the space.
As podcasting grows, the listener base is diversifying. Edison Research looked into data on “rookie” listeners (listening for six months or less) and “veteran” listeners (listening for 3+ years), and found significant demographic differences. Only 37% of veterans are female, compared to 53% of rookies. While the plurality of veterans (43%) are age 35-54, 54% of rookies are age 12-34. Rookies are also 1.6x more likely to say they most often listen to podcasts on Spotify, Pandora or SoundCloud (43% versus 27% of veterans). And social media is an important way that rookies discover podcasts — 52% have found a podcast from video and 46% from audio on social media, compared to 41% and 37% for veterans.
These new listeners will have a profound impact on the future of podcasting, in both the type of content produced and the way it’s distributed. Industry experts are already noting significant new demand for female-hosted podcasts, as well as audio dramas that appeal to young people looking for a fast-paced, suspenseful story. They’re advising podcasters to share clips of their content on social media, and to leverage broader listening platforms like YouTube and SoundCloud for distribution.
International markets also represent an enormous opportunity for growth. Most podcast listeners today live in the U.S. or China, but content producers are starting to see significant demand elsewhere. Castbox’s Valentina Kaledina said that many fans abroad have resorted to listening in their non-native language, with the top 100 shows in each country comprising a mix of English and local language. Adonde Media’s Martina Castro, who recently conducted the first listener survey on Spanish-language podcast fans, said that 53% of the survey’s 2,100 respondents reported listening to podcasts in English — and only 20% of them use Apple Podcasts.
Larger podcast producers are beginning to translate shows for non-English-speaking markets. Wondery CEO Hernan Lopez announced at the conference that the company’s hit show Dr. Death is now available in seven languages. Lopez noted that it was an expensive process, and he doesn’t expect the shows to generate profit in the near future. However, he believes that Wondery will eventually see a significant return from investing in the development of new podcast markets — and if they do, other podcast companies will likely follow in their footsteps.
TikTok, the short-form video platform favored by young adults and teens, has launched a new feature that allows users to shop for products associated with a sponsored Hashtag Challenge, without leaving its app. These sponsored challenges are Gen Z-friendly marketing campaigns where users are prompted to post videos of them using a product — like showing off favorite outfits from Uniqlo or Guess, for example. Or they might participate in some sort of manufactured viral trend, like singing favorite Disney songs ahead of a Disney-themed episode of American Idol.
The new e-commerce feature, called Hashtag Challenge Plus, adds a shoppable component to the hashtag.
In addition to creating and viewing videos featuring the brand’s sponsored hashtag, a separate tab features an in-app experience where products from the campaign can be purchased within TikTok itself.
While not exactly a company that exudes youth appeal, Kroger found a way to reach TikTok’s young adult audience through their hashtag campaign.
In partnership with four TikTok influencers — Joey Klaasen, Cosette Rinab, Mia Finney and Victoria Bachlet — Kroger prompted TikTok viewers to post videos of their dorm makeovers using the hashtag #TransformUrDorm. Digital agency i360 was involved in the videos’ creation.
What made Kroger’s challenge unique was that it also introduced a dedicated brand page where viewers could actually shop for products, too.
Kroger paid for its sponsored hashtag to be given placement on TikTok’s Discover page for a week’s time. The tag can still be found via search, even though the campaign has wrapped.
Of course, many of its intended viewers found it by way of their favorite TikTok influencer’s profile, much like how Instagram ad campaigns work.
Since launch, the hashtag has since grown to around 477 million views across hundreds of videos — some labeled “Official,” if from the influencers. The rest is user-generated content from other TikTok users hoping to capitalize on the trend to gain a little TikTok fame for themselves.
On the hashtag’s landing page, there’s a separate tab also labeled “Discover,” but not to be confused with TikTok’s main Discover section. This directs viewers to the new shopping experience.
Here, Kroger shows off a scrollable row of featured products, including things like a popcorn maker, a box of snack bars, a toaster and other items.
Tapping the “Shop Now” link then opens up Kroger’s website, where users can add items to their cart and check out online.
This shoppable experience is really just a mobile-optimized Kroger website pointing to a special search term (btscollege19). It isn’t a TikTok creation, nor built with TikTok’s help. On the mobile site, you can scroll down through a random list of items — from shampoos to coffee filters to toothpaste to hangers and more — or you can filter by category or enter a search term.
It’s unclear if such an offering will actually significantly impact e-commerce sales.
If anything, a hashtag campaign like this is better utilized to remind viewers that Kroger’s grocery store is also a place to shop for back-to-school needs, as an alternative to big-box stores like Target or Walmart or online retailers like Amazon.
TikTok confirmed to TechCrunch that Kroger was the first to put it into action last week. A spokesperson declined to say if other campaigns using the new product were in the works, adding that the company couldn’t talk about any plans ahead of their launch.
Sponsored Hashtag Challenges are only one way TikTok is experimenting with generating revenue from its roughly 500 million monthly users, the majority who are younger than 30. The company has also tried out full-screen ads at launch, in-feed ads, 3D/AR lenses, stickers and more.
Depending on your connection and the size of your household, video streaming can get downright post-apocalyptic — bandwidth is the key resource, and everyone is fighting to get the most and avoid a nasty, pixelated picture. But a new way to control how bandwidth is distributed across multiple, simultaneous streams could mean peace across the land — even when a ton of devices are sharing the same connection and all are streaming video at the same time.
Researchers at MIT’s Computer Science and Artificial Intelligence Lab created a system they call “Minerva” that minimizes stutters due to buffering, and pixelation due to downgraded stream, which it believes could have huge potential benefits for streaming services like Netflix and Hulu that increasingly serve multiple members of a household at once. The underlying technology could be applied to larger areas, too, extending beyond the house and into neighborhoods or even whole regions to mitigate the effects of less than ideal streaming conditions.
Minerva works by taking into account the varying needs of different delivery devices streaming on a network — so it doesn’t treat a 4K Apple TV the same as an older smartphone with a display that can’t even show full HD output, for instance. It also considers the nature of the content, which is important because live-action sports require a heck of a lot more bandwidth to display in high quality when compared to say a children’s animated TV show.
Video is then served to viewers based on its actual needs, instead of just being allocated more or less evenly across devices, and the Minerva system continually optimizes delivery speeds in accordance with their changing needs as the stream continues.
In real-world testing, Minerva was able to provide a quality jump equivalent to going from 720p to 1080p as much as a third of the time, and eliminated the need for rebuffing by almost 50%, which is a massive improvement when it comes to actually being able to seamlessly stream video content continuously. Plus, it can do all this without requiring any fundamental changes to network infrastructure, meaning a streaming provider could roll it out without having to require any changes on the part of users.
In an email distributed to YouTube Premium subscribers, the company confirmed that access to YouTube’s original programming will no longer be exclusive to Premium customers after September 24th, 2019. Instead, YouTube’s Original series, movies, and live events will be offered to all YouTube viewers for free, supported by ads. Premium members, however, can watch the content ad-free.
In addition, Premium subscribers will have access to all the available episodes in a series right when they premiere, says YouTube, and they’ll be able to download them for offline viewing.
There will also continue to be some exclusive subscriber-only content, in the form of things like director’s cuts and extra scenes from YouTube Originals.
YouTube had previously announced its plans to make its original programming available for free back in May, following a larger shift in strategy for the video platform. According to a Deadline report from last November, YouTube had been reassessing its scripted development plans with a goal of refocusing on unscripted shows and specials. It had also stopped taking new scripted pitches.
The company had found some success with scripted content, the report noted — like Cobra Kai which at the time had 100 million views and a 100% Rotten Tomatoes score. But the company was also finding success with celebrity content, like Katy Perry: Will You Be My Witness and Will Smith’s Grand Canyon bungee stunt, for example.
This is the direction YouTube may be aiming to pursue next, Deadline had said.
Perhaps not coincidentally, Variety recently reported on a new crowdfunding service for YouTube creators, Fundo, which allows start to invite fans to virtual meet & greet sessions and other paid online events. However, this project is not from YouTube or Google itself, but rather its in-house incubator Area 120, which operates more independently. That said, it reflects YouTube’s larger interest in the creation of new revenue streams for creators beyond ads and subscriptions.
Along with the news of the changes to YouTube Originals, the email to Premium subscribers also alerted them to the addition of a “Recommended Downloads” feature on the Library tab, which lets them browse and download videos from YouTube’s algorithmic suggestions. And it noted YouTube Music changes, like the ability to switch between video and audio and the launch of “smart downloads” which automatically download up to 500 songs from Liked Songs and other favorite playlists and albums.
Minecraft is getting a free update that brings much-improved lighting and color to the game’s blocky graphics using real-time ray tracing running on Nvidia GeForce RTX graphics hardware. The new look is a dramatic change in the atmospherics of the game, and manages to be eerily realistic while retaining Minecraft’s pixelated charm.
The ray tracing tech will be available via a free update to the game on Windows 10 PCs, but it’ll only be accessible to players using an Nvidia GeForce RTX GPU, since that’s the only graphics hardware on the market that currently supports playing games with real-time ray tracing active.
It sounds like it’ll be an excellent addition to the experience for players who are equipped with the right hardware, however – including lighting effects not only from the sun, but also from in-game materials like glowstone and lava; both hard and soft shadows depending on transparency of material and angle of light refraction; and accurate reflections in surfaces that are supposed to be reflective (ie. gold blocks, for instance).
This is welcome news after Minecraft developer Mojang announced last week that it cancelled plans to release its Super Duper Graphics Pack, which was going to add a bunch of improved visuals to the game, because it wouldn’t work well across platforms. At the time, Mojang said it would be sharing news about graphics optimization for some platforms “very soon,” and it looks like this is what they had in mind.
Nvidia meanwhile is showing off a range of 2019 games with real-time ray tracing enabled at Gamescom 2019 in Cologne, Germany, including Dying Light 2, Cyperpunk 2077, Call of Duty: Modern Warfare and Watch Dogs: Legion.
If you have ever worked at any sizable company, the word “IT” probably doesn’t conjure up many warm feelings. If you’re working for an old, traditional enterprise company, you probably don’t expect anything else, though. If you’re working for a modern tech company, though, chances are your expectations are a bit higher. And once you’re at the scale of a company like Facebook, a lot of the third-party services that work for smaller companies simply don’t work anymore.
To discuss how Facebook thinks about its IT strategy and why it now builds most of its IT tools in-house, I sat down with the company’s CIO, Atish Banerjea, at its Menlo Park headquarter.
Before joining Facebook in 2016 to head up what it now calls its “Enterprise Engineering” organization, Banerjea was the CIO or CTO at companies like NBCUniversal, Dex One and Pearson.
“If you think about Facebook 10 years ago, we were very much a traditional IT shop at that point,” he told me. “We were responsible for just core IT services, responsible for compliance and responsible for change management. But basically, if you think about the trajectory of the company, were probably about 2,000 employees around the end of 2010. But at the end of last year, we were close to 37,000 employees.”
Traditionally, IT organizations rely on third-party tools and software, but as Facebook grew to this current size, many third-party solutions simply weren’t able to scale with it. At that point, the team decided to take matters into its own hands and go from being a traditional IT organization to one that could build tools in-house. Today, the company is pretty much self-sufficient when it comes to running its IT operations, but getting to this point took a while.
“We had to pretty much reinvent ourselves into a true engineering product organization and went to a full ‘build’ mindset,” said Banerjea. That’s not something every organization is obviously able to do, but, as Banerjea joked, one of the reasons why this works at Facebook “is because we can — we have that benefit of the talent pool that is here at Facebook.”
The company then took this talent and basically replicated the kind of team it would help on the customer side to build out its IT tools, with engineers, designers, product managers, content strategies, people and research. “We also made the decision at that point that we will hold the same bar and we will hold the same standards so that the products we create internally will be as world-class as the products we’re rolling out externally.”
One of the tools that wasn’t up to Facebook’s scaling challenges was video conferencing. The company was using a third-party tool for that, but that just wasn’t working anymore. In 2018, Facebook was consuming about 20 million conference minutes per month. In 2019, the company is now at 40 million per month.
Besides the obvious scaling challenge, Facebook is also doing this to be able to offer its employees custom software that fits their workflows. It’s one thing to adapt existing third-party tools, after all, and another to build custom tools to support a company’s business processes.
Banerjea told me that creating this new structure was a relatively easy sell inside the company. Every transformation comes with its own challenges, though. For Facebook’s Enterprise Engineering team, that included having to recruit new skill sets into the organization. The first few months of this process were painful, Banerjea admitted, as the company had to up-level the skills of many existing employees and shed a significant number of contractors. “There are certain areas where we really felt that we had to have Facebook DNA in order to make sure that we were actually building things the right way,” he explained.
Facebook’s structure creates an additional challenge for the team. When you’re joining Facebook as a new employee, you have plenty of teams to choose from, after all, and if you have the choice of working on Instagram or WhatsApp or the core Facebook app — all of which touch millions of people — working on internal tools with fewer than 40,000 users doesn’t sound all that exciting.
“When young kids who come straight from college and they come into Facebook, they don’t know any better. So they think this is how the world is,” Banerjea said. “But when we have experienced people come in who have worked at other companies, the first thing I hear is ‘oh my goodness, we’ve never seen internal tools of this caliber before.’ The way we recruit, the way we do performance management, the way we do learning and development — every facet of how that employee works has been touched in terms of their life cycle here.”
Facebook first started building these internal tools around 2012, though it wasn’t until Banerjea joined in 2016 that it rebranded the organization and set up today’s structure. He also noted that some of those original tools were good, but not up to the caliber employees would expect from the company.
“The really big change that we went through was up-leveling our building skills to really become at the same caliber as if we were to build those products for an external customer. We want to have the same experience for people internally.”
The company went as far as replacing and rebuilding the commercial Enterprise Resource Planning (ERP) system it had been using for years. If there’s one thing that big companies rely on, it’s their ERP systems, given they often handle everything from finance and HR to supply chain management and manufacturing. That’s basically what all of their backend tools rely on (and what companies like SAP, Oracle and others charge a lot of money for). “In that 2016/2017 time frame, we realized that that was not a very good strategy,” Banerjea said. In Facebook’s case, the old ERP handled the inventory management for its data centers, among many other things. When that old system went down, the company couldn’t ship parts to its data centers.
“So what we started doing was we started peeling off all the business logic from our backend ERP and we started rewriting it ourselves on our own platform,” he explained. “Today, for our ERP, the backend is just the database, but all the business logic, all of the functionality is actually all custom written by us on our own platform. So we’ve completely rewritten our ERP, so to speak.”
In practice, all of this means that ideally, Facebook’s employees face far less friction when they join the company, for example, or when they need to replace a broken laptop, get a new phone to test features or simply order a new screen for their desk.
One classic use case is onboarding, where new employees get their company laptop, mobile phones and access to all of their systems, for example. At Facebook, that’s also the start of a six-week bootcamp that gets new engineers up to speed with how things work at Facebook. Back in 2016, when new classes tended to still have less than 200 new employees, that was still mostly a manual task. Today, with far more incoming employees, the Enterprise Engineering team has automated most of that — and that includes managing the supply chain that ensures the laptops and phones for these new employees are actually available.
But the team also built the backend that powers the company’s more traditional IT help desks, where employees can walk up and get their issues fixed (and passwords reset).
To talk more about how Facebook handles the logistics of that, I sat down with Koshambi Shah, who heads up the company’s Enterprise Supply Chain organization, which pretty much handles every piece of hardware and software the company delivers and deploys to its employees around the world (and that global nature of the company brings its own challenges and additional complexity). The team, which has fewer than 30 people, is made up of employees with experience in manufacturing, retail and consumer supply chains.
Typically, enterprises offer their employees a minimal set of choices when it comes to the laptops and phones they issue to their employees, and the operating systems that can run on them tend to be limited. Facebook’s engineers have to be able to test new features on a wide range of devices and operating systems. There are, after all, still users on the iPhone 4s or BlackBerry that the company wants to support. To do this, Shah’s organization actually makes thousands of SKUs available to employees and is able to deliver 98% of them within three days or less. It’s not just sending a laptop via FedEx, though. “We do the budgeting, the financial planning, the forecasting, the supply/demand balancing,” Shah said. “We do the asset management. We make sure the asset — what is needed, when it’s needed, where it’s needed — is there consistently.”
In many large companies, every asset request is double guessed. Facebook, on the other hand, places a lot of trust in its employees, it seems. There’s a self-service portal, the Enterprise Store, that allows employees to easily request phones, laptops, chargers (which get lost a lot) and other accessories as needed, without having to wait for approval (though if you request a laptop every week, somebody will surely want to have a word with you). Everything is obviously tracked in detail, but the overall experience is closer to shopping at an online retailer than using an enterprise asset management system. The Enterprise Store will tell you where a device is available, for example, so you can pick it up yourself (but you can always have it delivered to your desk, too, because this is, after all, a Silicon Valley company).
For accessories, Facebook also offers self-service vending machines, and employees can walk up to the help desk.
The company also recently introduced an Amazon Locker-style setup that allows employees to check out devices as needed. At these smart lockers, employees simply have to scan their badge, choose a device and, once the appropriate door has opened, pick up the phone, tablet, laptop or VR devices they were looking for and move on. Once they are done with it, they can come back and check the device back in. No questions asked. “We trust that people make the right decision for the good of the company,” Shah said. For laptops and other accessories, the company does show the employee the price of those items, though, so it’s clear how much a certain request costs the company. “We empower you with the data for you to make the best decision for your company.”
Talking about cost, Shah told me the Supply Chain organization tracks a number of metrics. One of those is obviously cost. “We do give back about 4% year-over-year, that’s our commitment back to the businesses in terms of the efficiencies we build for every user we support. So we measure ourselves in terms of cost per supported user. And we give back 4% on an annualized basis in the efficiencies.”
Unsurprisingly, the company has by now gathered enough data about employee requests (Shah said the team fulfills about half a million transactions per year) that it can use machine learning to understand trends and be proactive about replacing devices, for example.
Facebooks’ Enterprise Engineering group doesn’t just support internal customers, though. Another interesting aspect to Facebook’s Enterprise Engineering group is that it also runs the company’s internal and external events, including the likes of F8, the company’s annual developer conference. To do this, the company built out conference rooms that can seat thousands of people, with all of the logistics that go with that.
The company also showed me one of its newest meeting rooms where there are dozens of microphones and speakers hanging from the ceiling that make it easier for everybody in the room to participate in a meeting and be heard by everybody else. That’s part of what the organization’s “New Builds” team is responsible for, and something that’s possible because the company also takes a very hands-on approach to building and managing its offices.
Facebook also runs a number of small studios in its Menlo Park and New York offices, where both employees and the occasional external VIP can host Facebook Live videos.
Indeed, live video, it seems, is one of the cornerstones of how Facebook employees collaborate and help employees who work from home. Typically, you’d just use the camera on your laptop or maybe a webcam connected to your desktop to do so. But because Facebook actually produces its own camera system with the consumer-oriented Portal, Banerjea’s team decided to use that.
“What we have done is we have actually re-engineered the Portal,” he told me. “We have connected with all of our video conferencing systems in the rooms. So if I have a Portal at home, I can dial into my video conferencing platform and have a conference call just like I’m sitting in any other conference room here in Facebook. And all that software, all the engineering on the portal, that has been done by our teams — some in partnership with our production teams, but a lot of it has been done with Enterprise Engineering.”
Unsurprisingly, there are also groups that manage some of the core infrastructure and security for the company’s internal tools and networks. All of those tools run in the same data centers as Facebook’s consumer-facing applications, though they are obviously sandboxed and isolated from them.
It’s one thing to build all of these tools for internal use, but now, the company is also starting to think about how it can bring some of these tools it built for internal use to some of its external customers. You may not think of Facebook as an enterprise company, but with its Workplace collaboration tool, it has an enterprise service that it sells externally, too. Last year, for the first time, Workplace added a new feature that was incubated inside of Enterprise Engineering. That feature was a version of Facebook’s public Safety Check that the Enterprise Engineering team had originally adapted to the company’s own internal use.
“Many of these things that we are building for Facebook, because we are now very close partners with our Workplace team — they are in the enterprise software business and we are the enterprise software group for Facebook — and many [features] we are building for Facebook are of interest to Workplace customers.”
As Workplace hit the market, Banerjea ended up talking to the CIOs of potential users, including the likes of Delta Air Lines, about how Facebook itself used Workplace internally. But as companies started to adopt Workplace, they realized that they needed integrations with existing third-party services like ERP platforms and Salesforce. Those companies then asked Facebook if it could build those integrations or work with partners to make them available. But at the same time, those customers got exposed to some of the tools that Facebook itself was building internally.
“Safety Check was the first one,” Banerjea said. “We are actually working on three more products this year.” He wouldn’t say what these are, of course, but there is clearly a pipeline of tools that Facebook has built for internal use that it is now looking to commercialize. That’s pretty unusual for any IT organization, which, after all, tends to only focus on internal customers. I don’t expect Facebook to pivot to an enterprise software company anytime soon, but initiatives like this are clearly important to the company and, in some ways, to the morale of the team.
This creates a bit of friction, too, though, given that the Enterprise Engineering group’s mission is to build internal tools for Facebook. “We are now figuring out the deployment model,” Banerjea said. Who, for example, is going to support the external tools the team built? Is it the Enterprise Engineering group or the Workplace team?
Chances are then, that Facebook will bring some of the tools it built for internal use to more enterprises in the long run. That definitely puts a different spin on the idea of the consumerization of enterprise tech. Clearly, not every company operates at the scale of Facebook and needs to build its own tools — and even some companies that could benefit from it don’t have the resources to do so. For Facebook, though, that move seems to have paid off and the tools I saw while talking to the team definitely looked more user-friendly than any off-the-shelf enterprise tools I’ve seen at other large companies.
Earlier this summer, YouTube announced its plans for a new AR feature for virtual makeup try-on that works directly in the YouTube app. Today, the first official campaign to use the “Beauty Try-On” feature has now launched, allowing viewers to try on and shop lipsticks from MAC Cosmetics from YouTube creator Roxette Arisa’s makeup tutorial video.
Makeup tutorials are hugely popular on YouTube, so an integration where you can try on the suggested looks yourself makes a ton of sense. While a lipstick try-on feature isn’t exactly groundbreaking — plenty of social media apps offer a similar filter these days — it could lead to more complex AR makeup integrations further down the road.
The new AR feature only works when you’re watching the video from a mobile device, and the YouTube app is updated to the latest version.
Then, when watching the video, you’ll see a button that says “try it on” which will launch the camera in a split-screen view. The video will continue to play as you scroll through the various lipstick shades below, applying the different colors to see which one works best. Unlike some of the filters in social apps like Instagram and Snapchat, the colors are evenly aligned with your lips and not bleeding out the edges. The result is a very natural look.
MAC Cosmetics will work with creators through YouTube’s branded content division, Famebit. The program connects brands with YouTube influencers who then market their products as paid sponsorships.
MAC is the first partner for this AR feature, but more will likely follow.
Prior to launch, YouTube tested the AR Beauty Try-On with several beauty brands, and found that 30% of viewers chose to active the experience in the YouTube iOS.
Those who did were fairly engaged, spending more than 80 seconds trying on virtual lipstick shades.
Google is not the first company to offer virtual makeup try-on experiences. Beyond social media apps, there are also AR beauty apps like YouCam Makeup, Sephora’s Virtual Artist, Ulta’s GLAMLab and others. L’Oréal also offers Live Try-On on its website, and had partnered with Facebook last year to bring virtual makeup to the site. In addition, Target’s online Beauty Studio offers virtual makeup across a number of brands and products.
YouTube’s implementation, however, is different because it’s not just a fun consumer product — it’s an AR-powered ad campaign.
Though some may scoff at the idea of virtual makeup, this market is massive. Millions watch makeup tutorials on YouTube every day, and the site has become the dominant source for referral traffic for beauty brands. In 2018, beauty-related content generated more than 169 billion views on the video platform.
You can watch the YouTube video here, or engage with the AR feature from the mobile YouTube app.
If you don’t see your face immediately after pressing the “try on” button, you probably need to update the YouTube app.
Following her talk at the recent Banff World Media Festival in Canada, I interviewed Laura Martin, the senior analyst covering entertainment and internet stocks at leading investment bank Needham & Company, to sort out how the pieces are moving in this chess game between content creators, streaming services, consumers, and government regulators.
We discuss why Netflix is still at risk of a downfall, the effect of EU content quotas, why Martin thinks regulators should break up Google, and why video streaming and game streaming are likely to merge into the same subscription products.
Here is the transcript of our discussion, edited for length and clarity:
Eric Peckham: There’s an optimistic case that the rise of online video streaming is a win for both consumers and content creators because it creates a vast landscape of content platforms. Onstage in Banff, you argued that the number of content platforms (and thus the number of content buyers) will in fact shrink. Why do you see it going that direction?
Laura Martin: There are 4,000 video apps on the Roku platform today (and similarly on Samsung and on Amazon Fire). What you’ll see is a consolidation in the industry as we get big players like the Walt Disney Company, AT&T, and Apple coming into the DTC business with big, deep pockets. Although we have more buyers of content today, it’s driving prices up.
It is likely that the big players are just battling out between themselves, putting smaller players out of business. Over a 10-year time frame, I expect just three or four winners, and that will bring more discipline back into the financial aspects of the business.
Peckham: What will separate the winners from the losers here?