Saturday 24 August 2013

Digital First: Facebook Kills Physical Goods Delivery in Gifting Service

book’s great gifting experiment has come to an end — for physical goods, at least.
After less than a year on the market, the company plans to ramp down its physical gifting service due to an overall lack of user demand. Instead, Facebook will shift its Gifts product entirely to digital goods and gift cards, a retail category for which the company saw much higher customer preference.
More than 80 percent of gifts sent on Facebook were digital, according to the company.
“We’re really making the decision based on user feedback,” said Lee Linden, Facebook’s head of the Gifts program, in an interview. “The physical stuff is interesting for sure, but our goal is to build stuff that’s really great for the majority of people who are using it.”
The switch is also likely due in part to the extremely complicated system that a physical goods delivery operation requires, including working with many partners to keep up with inventory tracking, fulfillment and delivery, and the incredibly touchy task of providing ample customer service. It is unclear how many people inside of Facebook were devoted to maintaining the physical goods Gifts program.
Gifts Redesign_Final (1)“Physical gifts do require more work to maintain,” Linden said. “And if less than 20 percent of users are taking advantage of it — the purpose of this redesign is to double down on what people want.”
The pivot to offering digital only certainly makes sense in terms of cutting overhead and complication (not to mention eliminating a physical goods business which likely saw razor-thin profit margins). Users will instead be directed to a gifts center with gift card options from businesses like Starbucks, Apple’s iTunes, Target and others.
Linden also stressed the importance of the Facebook Card — a re-loadable gift card that people can choose to pay with at a number of retail partners, though I’d posit this is somewhat more complicated than it should be. Users are directed to load money into individual retailer accounts on the card — like, say, $20 for Olive Garden and $20 for Target — instead of loading money into one account on the card and spending it wherever they choose. (This is likely due to retailers wanting the customer to be “locked in” to spending money with their establishment.)
The move to strictly digital will also put Facebook in more direct competition with services like Wrapp, a purely digital gifting startup that uses the Facebook platform. Linden said Wrapp continues to be “very welcome on the platform.”
The shift will roll out to 10 percent of users Friday afternoon, and completely turn over to 100 percent of the network beginning next week.

Tuesday 20 August 2013

Google and Waze Start Mixing Their Maps for the First Time

oogle today is introducing the first integrations between its homegrown Google Maps for mobile and its newly owned Waze.
Google adds Waze
Google adds Waze
The traffic tab on Google Maps for iOS and Android will now include accidents, construction, road closures and other incidents reported by Waze users. Meanwhile, the Waze app now supports Google search, and Waze map editors will have access to Google Street View and satellite imagery.
Google grabbing Waze for more than $1 billion in June kept the hot startup away from other suitors, but also landed the “more wood behind fewer arrows” advocates in Mountain View, Calif. with two map apps.
Given the substantial overlap between Google Maps and Waze, it’s interesting to see what the company does to bring them together and keep them distinct.
Adding Waze incident reports is the obvious choice, but also a substantial one; Waze users report millions of blockages and accidents per month. “I think it will have a pretty big impact,” said Brian McClendon, VP of Google Maps. “A big fraction of GMM users will see these.”
As McClendon described it in an interview Monday, Waze will continue to be focused on two core things: its community, and helping people who commute.
As for Google Maps’ perceived strengths? Those are search, exploring, finding businesses around you, and offering more imagery, according to McClendon.
Waze adds Google
Waze adds Google
“We are cross-pollinating as much as possible,” McClendon said of his team and the Waze U.S. unit, which moved to Mountain View a couple weeks ago (the company’s engineering group remains in Tel Aviv). “We’re learning a lot both ways; it’s a very strong meeting of the minds.”
Though Google Maps won’t credit Waze users by name for their incident reports, it will offer them “a much larger audience listening in on that conversation,” McClendon said.
Given that Google has publicly disclosed that the Waze deal is being reviewed retroactively by the U.S. Federal Trade Commission, it’s interesting that McClendon is being quite so forward about these integrations, which he said were the first of many.
“Nothing has changed in our actions based on the FTC,” McClendon said.
Brian McClendon, VP of Google Maps
Flickr/HeatherMG Brian McClendon, VP of Google Maps
Waze users will provide to Google incident reports from Argentina, Brazil, Chile, Colombia, Ecuador, France, Germany, Mexico, Panama, Peru, Switzerland, UK and the U.S.
Google Maps for Mobile will also continue to show traffic incidents from other providers including TomTom, McClendon noted.
Another potentially interesting area of overlap between Waze and Google Maps is monetization. Google (duh) has taken a search ads approach — it just added ads on Google Maps for iPhone and iPad, after having them on the Android version for a while. Waze has struck deals to display a smattering of businesses on its map (mainly Taco Bell, it seems) when users are approaching them.
“Waze has a materially different model,” McClendon noted. “But, it’s early days for local advertising and I think we both have good ideas, and right now lots of experiments.”
So will Google really maintain two map apps long-term?
“We would never do anything to hurt the community,” McClendon said, “And right now, having the Waze app is the way to stay focused on it.”
He added, “Long-term speculation, I probably wouldn’t get into, but right now they are two powerful separate applications.”

Wednesday 30 May 2012

Kixeye’s Games on Facebook Are Not Cute or Cuddly, Just Like Its Prickly CEO

Farms don’t have rocket launchers, but games built by Kixeye do.
You also won’t find purple cows or other decorations — just blood.
Kixeye CEO Will Hardin
That’s how Will Harbin, Kixeye’s CEO, described his company’s social games to me last week over the phone. Harbin is passionate about building games for Facebook, but we are not talking about the ones that necessarily appeal to 40-year-old housewives. The company’s titles include Backyard Monsters, War Commander and Battle Pirates, and 97 percent of the company’s audience is male.
Because of the small niche it is serving, the games don’t appear in Facebook’s top 40. But they do monetize extremely well.
Currently, Kixeye is registering roughly one million users every day, and while most social game companies make roughly 4 cents per user, Kixeye claims it makes closer to 60 cents.
The San Francisco company has been profitable for the past two years, and this year it is projecting revenues in excess of $100 million.
It’s similar to the story Kabam and other social game makers have started to tell as Facebook becomes a more mature gaming platform. Developers are starting to see that if they target a more hardcore gaming demographic, with more sophisticated kinds of games, the players will be more engrossed and, therefore, spend more time and money in the game.
Besides, it is these players who are typically used to spending $60 per videogame for a console system, so getting a few dollars out of them is much easier.
But even though this all sounds great, don’t expect Harbin to hype the company’s prospects. Instead of pumping up the company as a prospective IPO candidate or raising millions of dollars in private equity — just because he can — he is fairly pragmatic.
In fact, the lack of sensationalism in his voice would be considered almost boring if the conversation weren’t actually such a breath of fresh air in what’s becoming an overheated sector. And, despite having plenty of good things to say, talking to me seemed like a real chore and only something he was mildly tolerating.
What’s more, when I reacted positively to his disinterest in our conversation — because it is so different from most pitchmen who talk to me — he was almost disappointed, saying that most people think he’s a jerk.
“I’ve had successes under my belt, but more importantly, I’ve had failures,” he said. “I know what I’d be in for, and I’m not in a rush to IPO. It’s got to be the right time. Too many companies go public too early and have ruined their growth trajectory. No one here has incentive to cash out and get out quickly. We love what we are doing, and this has been a passion of mine since I was a child — videogames, that is — and it would have to make real sense for me to change my day-to-day job.”
Without IPO pressures and without being accountable to shareholders on a quarterly basis, Harbin can aim for the fences.
The company, which is on track to have 300 employees by the end of the year (up from 35 a year ago), has raised $12 million in funding and is announcing today that it has opened a development studio in Australia.
Harbin said he was able to pick up employees from 3Blokes Studios, which RockYou acquired and subsequently shut down. He was going to acquire the studio, but when the deal fell through, he was able to hire everyone anyway. So far, there are about 10 people, and he thinks the studio will max out at 20.
A similar occurrence happened closer to home when he was able to hire six employees from Crowdstar when the company shifted gears away from building Facebook games.
Harbin said he sees three areas of focus for the company: building its own game platform so players don’t have to play via Facebook, developing mobile games and expanding internationally.
The first mobile game, Backyard Monsters, is expected to come out for iOS and Android this summer, and will be distributed on Ngmoco’s Mobage network.
Still, he’s reluctant to grow too fast or stretch the company’s resources too thin.
“We are trying to be pragmatic and do what we can with the management bandwidth we have. We don’t want to get too big too fast,” he said.

Friday 23 March 2012

Best Buy is Selling Nearly as Many iPhones as Apple Itself







Apple’s move to make Best Buy an outlet for the iPhone back in 2008 is proving a wise one — lucrative, too.
Over the past few years, the retail chain has become an increasingly important outlet for Apple extending its reach and distribution via its 1100 stores. About 600 of them host Apple Store-within-a-stores, most in geographic locations that Cupertino feels are too small to support a dedicated Apple store.
And they’re selling a lot of iPhones.
Almost as many as Apple itself, according to new data from Consumer Intelligence Research Partners (CIRP).
The firm surveyed iPhone buyers in December 2011, and January and February 2012, asking them where they purchased the device. And it found that retail stores accounted for 76 percent of iPhone sales and online stores 24 percent. When the iPhone 4S first launched, retail stores and online outlets accounted for 67 percent and 33 percent of sales, respectively, largely due to online pre-orders.
More interesting, however, was the actual breakdown of the stores themselves. According to CIRP’s data, Apple sold 15 percent of all iPhones purchased in the U.S. during the period of the survey (retail: 11 percent / online: 4 percent). Meanwhile, AT&T sold 32 percent via it’s online and retail stores, Verizon 30 percent — again, online and off, and Sprint 7 percent.
And Best Buy? The big box retailer sold 13 percent, just 2 percent shy of Apple itself. The remaining 3 percent: “other,” which I’m told is a combination of retailers like Radio Shack and Walmart and respondents who received their iPhone as a gift and didn’t know where it was originally purchased.
So when it comes to iPhone distribution, it’s obviously the carriers that drive sales. But retail partners like Best Buy are clearly hugely important as well. Nearly as important as the Apple Store.
“Apple Stores and the Apple Web site are tremendously productive, but they are limited by their relatively small retail footprint,” CIRP’s Josh Lowitz told AllThingsD. “There are 4 times as many Best Buy stores and probably 20 times as many AT&T, Verizon, and Sprint stores, so aggressive distribution through all these channels is critical to Apple’s US strategy.”

Apple’s TV Remote of the Future? It’s Already Here, In Your Hands.


It’s possible that, one day, Tim Cook will stand
 up onstage and show off a “real” Apple TV set 
— an integrated box/screen/entertainment device
  – that will replace whatever’s sitting in your living
 room now.
Another possibility: Over time, Apple simply builds
 an Apple TV set right in front of us, in bits and pieces — so slowly that we don’t really notice it.
Take the remote, for instance. PatentlyApple has its hands on an Apple application for an “advanced TV remote” that would offer some cool features. Like the ability to automatically scan your other devices and figure out the right code to control them, instead of requiring users to use a combination of manuals and trial and error.
At least as important is that, while Apple’s patent, filed back in 2010, could be a standalone device, the application makes it seem much more likely that users will use their iPhones, iPods or iPads to control their TVs.
Which makes sense, because Apple is already offering a “Remote” iOS app that handles some basic functions for its existing Apple TV. That is: There’s a good chance you’re just a download away from owning a bona-fide Apple TV remote already.
This kind of incremental building may be even more important on the content side, which is the real key to an Apple TV: If it’s simply a very nice screen that offers the same content choices that TV viewers already have, then it’s just a very nice screen. Andfor years, Apple has been making attempts to wrangle different TV choices, at different price points, without much success.
But instead of one grand, sweeping video package, Apple may end up just cobbling together an array of offerings, piece by piece.
To wit: The latest refresh of Apple TVdidn’t offer any new content, but it did make it easier for Apple users to buy the content that’s already there. Anyone with an iTunes account can subscribe to Netflix, and soon, Major League Baseball’s MLB.TV service, directly from Apple, without having to pull out a credit card again.
Netflix + iTunes + baseball games won’t make up a full suite of programming choices for most people. But now that Reed Hastings and Bob Bowman have agreed to let Tim Cook handle their billing for them, more media moguls will likely follow in their footsteps. Get enough of them in there, and you could end up with something really compelling.

Monday 19 March 2012

Viral Video: Hollywood Loves Obama Again


This has gotten to be the mother of all political 
ads — directed by Oscar-winning director Davis
 Guggenheim, narrated by Tom Hanks and lasting
 17 minutes — all part of the campaign of President Barack Obama.
Plus, “The Road We’ve Traveled” video was posted right onto YouTube on its release.
It will be interesting to see how it will be received and if it will work. The Washington Post is calling it a “docu-ganda,” noting it cost $345,000.
What do you think?

The Failures and Fallacies of Mike Daisey’s Apple Attack and the Media


Who in their right mind would lie to Ira Glass?
That was my first reaction to the revelation that the theatrical monologuist Mike Daisey had lied or fabricated — or in his words, “taken dramatic license” with — certain parts of his stage play, “The Agony and the Ecstasy of Steve Jobs.”
When I met people at parties in recent weeks and told them that I write about technology and that I had devoted more than a decade to covering Apple, the first question I used to get was: “Did you know Steve Jobs?” Since about January of this year, that first question has become, “What do you think of Mike Daisey?”
I haven’t had a real answer. I hadn’t seen his show, which was favorably reviewed by the New York Times, nor had I heard the episode of the highly respected public radio documentary program “This American Life” titled “Mr. Daisey and the Apple Factory,” that had been adapted from his play.
The show — or shows — hit a cultural nerve at a critical moment. Apple is the biggest company in the world, sporting a market capitalization of $546 billion as of Friday, with $100 billion worth of cash and investments on its balance sheet and the most popular stable of consumer electronics products in the world, especially the iPhone and the iPad. All of them are manufactured by workers in China, who labor for wages that are low by Western standards, put in hours that by Western reckoning are long, under conditions that to Western eyes aren’t ideal, doing jobs that by any standard are incredibly tedious.
Daisey’s stage show, which became a sensation among New York’s chattering classes, sought to draw attention to the plight of allegedly oppressed workers at Foxconn, Apple’s manufacturing partner in China. As New York Times reviewer Charles Isherwood put it, the play “is a mind-clouding, eye-opening exploration of the moral choices we unknowingly or unthinkingly make when we purchase nifty little gadgets like the iPhone.”
The stage show had been adapted for radio on public radio’s “This American Life,” which is probably the most-respected radio documentary program in the history of broadcasting. And the Daisey episode was presented as documentary, meaning the radio show’s staff of journalists and producers were vouching for it being true.
The problem: Much of it wasn’t.
In the show, Daisey described a trip to China, as well as a visit to Foxconn’s outer gates and other manufacturing companies in Shenzen, where many are located. He delivers a detailed and emotionally riveting account of meeting girls as young as 12, 13 and 14 years old who claimed to work for Foxconn. This would be in violation both of local laws and of Apple policies.
He also told of meeting workers poisoned by a chemical called n-Hexane, used to polish screens.
And, perhaps most movingly, he related a tear-jerking scene in which he showed a working iPad to a man who said he had crippled a hand while making its parts in a Foxconn metal press, yet had never so much as seen one of the devices powered on. Seeing the iPad’s screen in action, he tells Daisey, “is like a kind of magic.”
The word “magic” fits oddly here, because these meetings didn’t happen as Daisey said. “This American Life” yesterday aired a lengthy episode entitled “Retraction,” documenting Daisey’s many liberties with the facts.
To help do so, a reporter for another public radio show — Rob Schmitz of “Marketplace” — did what no one else in the media seemed to be willing to do, which was subject Daisey’s claims to scrutiny. Most damning of all in Schmitz’s report was the testimony of Daisey’s translator, called Cathy. She was found — after Daisey had told TAL he had lost contact with her — and disputed many of the anecdotes taken from the play and used in the radio segment about Foxconn.
Among the fabrications: Daisey didn’t speak to quite as many people nor visit nearly as many plants as he said he did. She disputed finding underage workers. The n-Hexane poisoning incident occurred not at Foxconn in Shenzen where Daisey visited, but at a Wintek facility in Suzchou, more than 900 miles to the north of Shenzen.
The stage show, and therefore the radio show that was derived from it, turned out to be a mixture of facts and fiction. Which might be fine for a production on the New York theatrical stage, where fiction and fact blend readily. And, while it might be okay in entertainment products, you don’t expect it from a prestigious radio documentary program.
And that is where the problems began.
When Daisey’s monologue was adapted for “This American Life,” outrage began to grow among people who wanted to do something about it. It was, Glass says, the most downloaded episode of “TAL” ever, and public radio listeners did what public radio listeners tend to do. For one thing, they started a petition. More than a quarter of a million people have signed a petition at Change.org, inspired by the TAL production based on Daisey’s work, demanding that Apple make changes.
That includes crafting a “worker protection strategy” for new products released, as well as publishing data from Fair Labor Association audits.
Feeding the frenzy, Daisey stepped up as the leading voice for worker rights in China’s electronics industry. He was seemingly everywhere in the media. Since the TAL segment aired in January, Daisey has been seen on “CBS News Sunday Morning,” in a report that, like the “TAL” episode, is now going to have to be retracted or at the very least walked back.
Another CBS-owned property, CNET, hosted Daisey as part of “Reporters Roundtable,” alongside Charles Duhigg of the New York Times, co-author of a series of front page stories in that newspaper. Duhigg ended his “Roundtable” appearance by urging people who care about the issue to go and see Daisey’s play.
Daisey also appeared on MSNBC repeating the same anecdotes and tarnishing the usually shiny Apple. And on HBO. And PBS. And C-SPAN.
Needless to say, there will have to be many more retractions in the days ahead.
At this point, it’s hard to determine what’s more outrageous, Daisey’s lies to Ira Glass and his team, or the national media’s willingness to give Daisey a platform to repeat the same lies and fabrications without making the slightest effort to vet them.
The circumstances around Apple’s manufacturing arrangements in China aren’t new. As a columnist for Businessweek I wrote about Apple’s first round of “sweatshop” allegations in 2006, well before the age of the iPhone and the iPad, which had at the time first come to light in part because of the reporting by London’s Daily Mail.
I’ve never been to China. Many people know more about the on-the-ground facts concerning Apple’s factories than I do. But there are many reporters who have been there. In 2010, Bloomberg Businessweek’s Fredrik Balfour wrote a powerful cover story for that magazine, which aimed to get to the bottom of the string of suicides that occurred among Foxconn employees that year.
ABC’s “Nightline” visited Foxconn earlier this year. Its report was criticized in some circles, because at the time of his death, Apple’s late CEO Steve Jobs happened to be the largest shareholder of that network’s parent company, Disney. Also, ABC had been invited by Apple and Foxconn. Even so, “Nightline” anchor Bill Weir, seeing conditions very different from what Daisey described in the course of his reporting, wondered if Mike Daisey’s work was questionable.
At the very least, Daisey is a dramatist who now admits he chose to lie, but for reasons known only to himself. The chance to raise his profile and sell more tickets to his monologue are obvious potential motivations. Whatever it was, his dramatic product is meant to be consumed as thought-provoking entertainment, not as fact-based journalism, which many people assumed it was.
This is the crux of Daisey’s defense for lying to Ira Glass and his fact-checker: That he’s not a journalist and took dramatic license with the events, and now regrets doing the “This American Life” segment.
And that’s the real shame here.
Clearly, people care about how workers who make our electronics are treated, or there wouldn’t have been a market for Daisey’s show, or for an hour-long radio documentary adapting it. And the subject is one we need to discuss at length as a society. The net result of Mike Daisey’s efforts to put self-promotion ahead of the facts has badly muddied the waters, and has probably done more harm to the people he sought to help.
So, instead of illumination on a serious topic, we are left with little. Mike Daisey is an opportunistic fabulist and should be ashamed of himself for lying. Ira Glass and his team are ashamed for giving him wider attention, and have said so. But there are many more people who should be even more ashamed for taking Daisey’s lies at face value. There should be many more retractions and apologies in the days ahead.
But now we have to start the conversation about Apple and Foxconn and workers’ rights all over again, this time with real, verifiable facts at our command. Is that so much to ask?

Twitter and Facebook Are Tomorrow’s News Service. For Now, Though …


If you’re like me, you increasingly rely on Twitter
and Facebook as your news editors. But that means we’re in a small minority.
Just 9 percent of American adults frequently get their news from their pals at the two services. And those who do end up getting it much more frequently from Facebook than Twitter. That’s according to a new survey from the Pew Research Center and its Project for Excellence in Journalism.
That’s a lot more than a few years ago, when that number would have been a goose egg for both services, because they didn’t exist.
But it’s still a whole lot less than Google and other search engines*, which do the trick 32 percent of the time, or good old fashioned news sites, which account for 36 percent of the audience’s tips. Aggregators — Pew calls them “news organizers” — pick up the rest.
Take off your digital blinders for a minute and this shouldn’t be a huge surprise. It’s easy to extrapolate your behavior, and the behavior you see from your peers, and assume it applies universally. But that doesn’t mean it’s right. (If it was, we’d actually see statistical evidence of cord-cutting.)
At All Things Digital, for instance, we’ve been making a concerted push to bring in visitors via Twitter and Facebook, mostly through the efforts of our social media whizDrake Martinet. But even though our audience hangs out on the right end of the early adopter bell curve, Drake says social services account for about 15 percent of our referrals, predominantly from Twitter. (Which is a whole lot better than it was before Drake started working his magic.)
Wait a minute: Aren’t the Pew people the same ones who told us, a year ago, that Facebook was an increasingly important source of traffic for news site?
Yup. (Good memory!)
But these two reports aren’t mutually exclusive. Last year’s survey pointed out that social media is a lot more important to news sites than it used to be. This one just reminds us that for most sites, other stuff still matters more.
*Okay. Basically, just Google.

Apple Unveils Cash Plan Monday Morning


Apple has around $100 billion in cash sitting
 on its books. What on earth will it do with it all?
Wall Street has been asking the company some
 version of this question for years, and now 
investors may get some kind of answer. Apple
 has announced a conference call to discuss its
 cash position — and only its cash position — tomorrow morning, at 9 am ET:
Here’s the entirety of the release:
“Tim Cook, Apple’s CEO, and Peter Oppenheimer, Apple’s CFO, will host a conference call to announce the outcome of the Company’s discussions concerning its cash balance. Apple® will not be providing an update on the current quarter nor will any topics be discussed other than cash.”
Apple has been hinting for a while that some kind of announcement has been coming. Cook made two public appearances this year — during the company’s earnings call and at a Goldman Sachs-hosted investor conference — and both times he said Apple was debating what to do with its stockpile.
Here’s John Paczkowski’s summary of Cook’s comments at the Goldman event, where Cook spent a lot of time talking about cash:
“We’re in very active discussions at the board level on what we should do,” he said, adding that careful consideration is the guiding principle here. “We are not going to run out and have a toga party.”
“We are judicious in our spending,” Cook said. “We are deliberate. We spend our money like it is our last penny. … I think shareholders want us to do that. They don’t want us to act like we are rich.”
“I’d be the first to admit we have more cash than we need to run the daily business. So we’re actively discussing it. I only ask for a bit of patience, so we can do it in a way that’s best for the shareholders.”

Sunday 18 March 2012

iPhone







The iPhone Finds Its Voice

The iPhone 4S is one of Apple’s less dramatic updates, but, when combined with the Siri, iOS 5 and iCloud features, it presents an attractive new offering to smartphone users, writes Walt.