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jerryking : user_bases   7

Five things we learnt from Apple’s latest launch
March 27, 2019 | | Financial Times | Richard Waters 3 HOURS AGO.

(1) With its move to services, Apple's balance sheet and installed base of users have taken over as the main source of competitive advantage....Apple has barely scratched the surface in selling content and services for the 1.4bn iPhone, Macs and other devices in active use.
(2) there is a chance to carve out a trusted position at a time when other internet giants are under fire. Think of it as a Disney for digital services: a trusted brand built around a set of values that stand above the crowd.
(3) there is still room for innovation at the margin, which should have a halo effect for the brand. The new credit card with Goldman Sachs is a case in point.
(4) Apple’s main way to make money — selling hardware — leaves it with a dilemma as it makes the move into services. .... it will be hard to get a return on the huge spending on entertainment unless it spreads that investment across the largest possible audience — which means reaching beyond its own hardware. This tension between vertical and horizontal business models — capturing more of the value from its own devices on the one hand, selling a service for everyone on the other — is not new for Apple.

(5) after more than a decade of the App Store, Apple’s relationship with many of the companies that have relied on the digital storefront to reach their own customers is about to change utterly...How will Apple promote its own services to its users, and what will this mean for iOS as a platform for third party apps? Spotify’s antitrust complaint to the EU this month is likely to be the harbinger of more challenges to come.
antitrust  Apple  Apple_IDs  App_Store  balance_sheets  Big_Tech  competitive_advantage  consumer_finance  credit_cards  cross-platform  EU  halo_effects  hardware  iOS  Richard_Waters  services  Spotify  streaming  subscriptions  turning_points  user_bases  web_video 
march 2019 by jerryking
Opinion | Netflix Is Shrinking the World - The New York Times
Netflix, which has become the internet’s most invaluable and intoxicating portal to the parts of planet Earth that aren’t America......A win by “Roma” would be a fitting testament to Netflix’s ambitions. Virtually alone among tech and media companies, Netflix intends to ride a new kind of open-border digital cosmopolitanism to the bank.......Netflix, which has 139 million paying members around the world, has lately become something more than a licenser of other countries’ escapist television.

In 2016, the company expanded to 190 countries, and last year, for the first time, a majority of its subscribers and most of its revenue came from outside the United States. To serve this audience, Netflix now commissions and licenses hundreds of shows meant to echo life in every one of its markets and, in some cases, to blend languages and sensibilities across its markets......Netflix has discovered something startling: Despite a supposed surge in nationalism across the globe, many people like to watch movies and TV shows from other countries. ....Hollywood and Silicon Valley have long pursued expansion internationally. But Netflix's strategy is fundamentally different. Instead of trying to sell American ideas to a foreign audience, it’s aiming to sell international ideas to a global audience.....a crucial difference between Netflix and other tech giants: Netflix makes money from subscriptions, not advertising.....This simple difference flips all of its incentives. It means that Netflix has a reason to satisfy every new customer, not just the ones in the most prosperous markets. Each new title carries subtitles in 26 languages, and the company is creating high-quality, properly lip-synced audio dubbing in 10 languages. For years, Netflix has roiled the film and TV business in Hollywood with its billions. Now it’s taking its money — the company spent $12 billion on content in 2018 and is projected to spend $15 billion this year — to film and TV producers in France, Spain, Brazil, India, South Korea and the Middle East, among other places.

Because it is spending so much on shows from everywhere, Netflix has an incentive to get the biggest bang for its buck by pushing them widely across its user base. Its algorithms are tuned toward expanding your interests rather than narrowing them. As a result, many of Netflix’s shows are watched widely beyond their local markets......Netflix does seem to be pushing cultural boundaries and sparking new conversations all over the world....It’s legitimate to ask how long Netflix will be able to keep up this cross-border conversation — whether, as it keeps growing, it will have to make legal or moral compromises with local censors or other would-be cultural arbiters.

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Matt
Michigan2h ago
Farhad, I totally enjoyed your extrospection of Netflix as a global epoch-maker and change agent. This is globalization at its best. Netflix is outsourcing (crowdsourcing), outspending, and outwitting the Hollywood (s) of this world. Its recipe is simple yet profound: telling the stories of people, everywhere in this world, to themselves in their down-to-earth languages and customs. And technology has everything to do with it. Netflix would not have been where it is today if it was not for streaming technology. The assertion is true: technology is bring the world closer together.

By Farhad Manjoo
Opinion Columnist

Feb. 22, 2019
content_creators  cosmopolitan  cross-cultural  entertainment  Farhad_Manjoo  globalization  Hollywood  international_expansion  internationalization  international_diversity  Netflix  original_programming  streaming  user_bases 
february 2019 by jerryking
Twitter’s Troubles and Snap’s Appeal: It’s All About the Mojo
OCT. 11, 2016 | - The New York Times| By STEVEN DAVIDOFF SOLOMON.

User growth is the secret sauce of internet valuations. Revenue and earnings are forgiven if you can show growth in users. Whether that makes sense, of course, is another matter.....Sharp leadership — whether that is from its chief executive, Jack Dorsey, or new blood — could certainly help Twitter exploit its huge user base.

But the problem is that in the eyes of the Valley, Twitter has lost its mojo.

Even as Twitter was deflating, another social media darling, Snapchat, now renamed Snap, was riding high as reports emerged that the start-up, known for its disappearing messages, was preparing for a public offering that could value it for as much as $25 billion.
Twitter  Snapchat  momentum  valuations  Silicon_Valley  social_media  youth  mojo  special_sauce  customer_growth  user_growth  user_bases 
october 2016 by jerryking
Expertise in scaling up is the visible secret of Silicon Valley - FT.com
September 15, 2015 |FT| Reid Hoffman.

Most observers instinctively conclude that Silicon Valley is great because it has a unique ability to create start-ups. Most observers are wrong....Why does Silicon Valley continue to produce a disproportionate share of industry-transforming companies like Google, Facebook and LinkedIn? Or the next generation of companies like Airbnb, Dropbox, and Uber? The answer, which has been hiding in plain sight, is Silicon Valley’s ability to support scale-ups....Most of the impact and value creation in Silicon Valley actually occurs after the start-up phase ends and the scale-up phase begins.
Building great, world-changing companies requires more than just building a cool app and raising money. Entrepreneurs need to build massive organisations, user bases and businesses, at a dizzyingly rapid pace.....So what makes Silicon Valley so good at scale-ups? The obvious answers are talent and capital. Both offer a scale-up positive feedback loops. The competitor that gets to scale first nearly always wins. First-scaler advantage beats first-mover advantage. Once a scale-up occupies the high ground in its ecosystem, the networks around it recognise its leadership, and talent and capital flood in....talent and capital are necessary but not sufficient. The key success factor is actually a comprehensive and adaptable approach to scale. A scale-up grows so fast that conventional management approaches are doomed to fail. ...Change, not stability, is the default state at every stage and in every facet of the company. Continually reinventing yourself, your product and your organisation won’t be easy, but it will allow you to use rapid scaling as a strategic weapon to attain and retain market leadership.
blitzscaling  capital  change  constant_change  disproportionality  entrepreneur  expertise  first_movers  ksfs  networks  Reid_Hoffman  reinvention  scaling  Silicon_Valley  special_sauce  start_ups  talent  user_bases 
september 2015 by jerryking
Video start-up's financing moving along at good clip
July 15, 2013 | G&M | BOYD ERMAN.

Social video start-up Keek Inc. is seeking a new round of financing at a lofty valuation, but pulling it off will require the Toronto company to convince investors it can withstand the challenges to its business from Facebook Inc. and Twitter....The potential valuation range that is being put forward is $600-million to $900-million, these people said. If Keek can find the interest, the size of the financing is likely be significantly larger than the $18-million it raised in January.

A valuation in that ballpark would be a huge win for the two-year-old company, which was founded in 2011 by entrepreneur Isaac Raichyk. The company, which allows users to create and share 36-second video updates on their phones or tablets, has yet to attract significant interest from large, established technology venture capital companies outside Toronto.

The company is seeking money just as competition in its business intensifies.

Keek was an early entrant in what is now a sought-after corner of social media, the sharing of short videos. (A keek is a Scottish term for a quick peek.) Keek's user base is soaring, with more than 45 million users worldwide as of last month.

Maintaining that growth as new competition jumps into the space is the trick.
start_ups  web_video  Toronto  Keek  Boyd_Erman  user_bases 
august 2013 by jerryking
In Facebook Deal for Instagram, Board Was All But Out of Picture - WSJ.com
April 18, 2012 | WSJ | By SHAYNDI RAICE, SPENCER E. ANTE and EMILY GLAZER.

"You want the board to provide caution to the CEO,'' said Ralph A. Walkling, executive director of the Center for Corporate Governance at Drexel University's business school. "They are the last line of defense for minority shareholders.''....Wall Street's traditional rules for valuing companies offer little help in putting a number on a company like Instagram. While the start-up, just 18 months old, had no revenue, its fast growth gave Mr. Systrom leverage. His company is strong where Facebook has been weak—on devices like the iPhone—and took aim squarely at Facebook users' favorite activity, sharing photos.

Instagram makes a smartphone "app" that lets people take photos, dress them up with special effects, and easily share them with friends. In the first three months of this year, its user base nearly doubled, to about 30 million, the company says....Mr. Zuckerberg, who planned to pay for Instagram mostly with stock, asked Mr. Systrom what he thought Facebook would be worth, the people said.
Facebook  mergers_&_acquisitions  M&A  CEOs  minority_shareholders  Instagram  Marc_Andreessen  Andreessen_Horowitz  boards_&_directors_&_governance  user_bases 
may 2012 by jerryking
The Real Cost of Information Technology
March 2, 1998 | JBA International |

The price per user (price per seat) of an application package can easily
be read from a vendor's price list. The real costs of in-house
developed software are not as easily available. For example, the Gartner
Group suggest, "a fully loaded cost of user development can be as high
as $3,140 (across the entire user base) per user, per annum." The pros
and cons of the package or in-house development route need to be
examined very closely with this in mind.
in-house  software  hospitals  user_bases 
april 2010 by jerryking

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