Apple Music streaming revenue detailed in letter to artists

Streaming revenue has been a longtime concern for musicians, especially those scraping by in the wake of an industry-wide implosion of record labels. Of course, a year that has made touring an impossibility has only brought those issues into starker relief as the primary revenue source for many has completely dried up.

Apple is hoping to clarify some of the major questions around streaming revenue in a letter it sent to artists. The note, reported by The Wall Street Journal, outlines a revenue that amounts to around double what Spotify pays out.

“As the discussion about streaming royalties continues, we believe it is important to share our values,” the company notes. “We believe in paying every creator the same rate, that a play has a value, and that creators should never have to pay for featuring music in prime display space on its service.”

The company’s comment is a clear shot at Spotify’s much more varied payment model. What that actually works out to at the end of the day, however, is a slightly more complicated question. Things start at around a penny-per-stream (though it can go down from there). That amount is paid out to rights holders — be they record labels or publishers. It’s another in a long line of issues that have led many musicians to question the efficacy of intermediaries in 2021.

Spotify CEO Daniel Ek fanned the flames in an interview last year, stating, “Some artists that used to do well in the past may not do well in this future landscape, where you can’t record music once every three to four years and think that’s going to be enough.”

At the end of the day, it’s a battle of pennies — or fractions thereof, for many artists. And it has become immensely difficult for mid-tier and truly independent artists to maintain a living as the world has shifted to a streaming model. Services like Bandcamp and Soundcloud have worked to make things more manageable for smaller artists, but the life of a modern musician remains a struggle — especially in the age of COVID-19.

 


Source: Tech Crunch

Rivian to initially launch in-house insurance program in 40 states

Electric truck startup Rivian released Thursday details of its in-house Rivian Insurance program, which it says will be integrated into its digital ordering process.

The insurance will initially be available in 40 states. Keeping in line with the company’s marketing as an “adventure vehicle” company, customers will also have the option to cover their home and recreational equipment, such as boats, dirt bikes, and campers. Rivian’s plans to start an insurance program first leaked more than a year ago after a job posting was spotted.

What makes the insurance offering stand out, however, is its integration with the Rivian vehicle platform and Driver+ safety suite, which the company said in a blog post will help deliver “tailored, data-driven coverage.” Customers who choose Rivian Insurance will get Driver+ rate reductions, with more details to come. Drivers can additionally opt in to a separate program that offers savings for using Rivian’s Active Driver Assistance software.

It’s a clever move for the company, which plans to bring its first electric pickup to market later this year. Like Tesla, Rivian intends to have Rivian Collision Centers and Service Centers performing the work – and by keeping everything in-house, the company is likely thinking customers will be attracted to a seamless insurance program. Rivian Insurance is another instance of the newer entrant following in the veteran’s lead, but with one big advantage: Tesla Insurance is only available to owners in California.


Source: Tech Crunch

Join ECL on Wednesday to pitch your startup to Fifth Wall’s Brendan Wallace and Hippo’s Assaf Wand

Have you ever dreamed about the opportunity to find yourself in, say, an elevator with an investor who is open to hearing your pitch? Well, then the next episode of Extra Crunch Live is for you.

If you’ve hung out with us on an ECL before, you know we start with a bit of top news, chat with our speakers about how to successfully fundraise, and then finish with the Pitch Deck Teardown, where we take a look at decks submitted by you, the audience members, and give live feedback.

On Wednesday, with the help of Fifth Wall’s Brendan Wallace and Hippo’s Assaf Wand, we’re going to shake things up a bit.

Folks who attend the live event will be able to virtually ‘raise their hand’, come on screen, and give a 60-second pitch of their startup. No demoes. No videos. No visual aids of any kind. It’s the ultimate elevator pitch, and it’ll be done before a live audience.

Wallace and Wand (that’s catchy, eh?) will give their feedback and ask questions at the end of every pitch.

The only way you can participate in the ECL Pitch-off is to show up. Luckily, the events are free to anyone. However, accessing any of this content on demand is reserved strictly for Extra Crunch members.

We’re super excited to introduce the pitch-off as a feature of ECL and hope you are too! See you on Wednesday!

Register here.

 

 

 


Source: Tech Crunch

Facebook brings software subscriptions to the Oculus Quest

Subscription pricing is landing on Facebook’s Oculus Store, giving VR developers another way to monetize content on Facebook’s Oculus Quest headset.

Developers will be allowed to add premium subscriptions to paid or free apps, with Facebook assumedly dragging in their standard percentage fee at the same time. Oculus and the developers on its platform have been riding the success of the company’s recent Quest 2 headset, which Facebook hasn’t detailed sales numbers on but has noted that the months-old $299 headset has already outsold every other Oculus headset sold to date.

Subscription pricing is an unsurprising development but signals that some developers believe they have a loyal enough group of subscribers to bring in sizable bits of recurring revenue. Facebook shipped the first Oculus Rift just over five years ago, and it’s been a zig-zagging path to finding early consumer success during that time. A big challenge for them has been building a dynamic developer ecosystem that offer something engaging to users while ensuring that VR devs can operate sustainably.

At launch, there are already a few developers debuting subscriptions for a number of different app types, spanning exercise, meditation, social, productivity and DJing. In addition to subscriptions, the new monetization path also allows developers to let users try out paid apps on a free trial basis.

The central question is how many Quest users there are that utilize their devices enough to justify a number of monthly subscriptions, but for developers looking to monetize their hardcore users, this is another utility that they likely felt was missing from the Oculus Store.


Source: Tech Crunch

Billion-dollar B2B: cloud-first enterprise tech behemoths have massive potential

More than half a decade ago, my Battery Ventures partner Neeraj Agrawal penned a widely read post offering advice for enterprise-software companies hoping to reach $100 million in annual recurring revenue.

His playbook, dubbed “T2D3” — for “triple, triple, double, double, double,” referring to the stages at which a software company’s revenue should multiply — helped many high-growth startups index their growth. It also highlighted the broader explosion in industry value creation stemming from the transition of on-premise software to the cloud.

Fast forward to today, and many of T2D3’s insights are still relevant. But now it’s time to update T2D3 to account for some of the tectonic changes shaping a broader universe of B2B tech — and pushing companies to grow at rates we’ve never seen before.

One of the biggest factors driving billion-dollar B2Bs is a simple but important shift in how organizations buy enterprise technology today.

I call this new paradigm “billion-dollar B2B.” It refers to the forces shaping a new class of cloud-first, enterprise-tech behemoths with the potential to reach $1 billion in ARR — and achieve market capitalizations in excess of $50 billion or even $100 billion.

In the past several years, we’ve seen a pioneering group of B2B standouts — Twilio, Shopify, Atlassian, Okta, Coupa*, MongoDB and Zscaler, for example — approach or exceed the $1 billion revenue mark and see their market capitalizations surge 10 times or more from their IPOs to the present day (as of March 31), according to CapIQ data.

More recently, iconic companies like data giant Snowflake and video-conferencing mainstay Zoom came out of the IPO gate at even higher valuations. Zoom, with 2020 revenue of just under $883 million, is now worth close to $100 billion, per CapIQ data.

Graphic showing market cap at IPO and market cap today of various companies.

Image Credits: Battery Ventures via FactSet. Note that market data is current as of April 3, 2021.

In the wings are other B2B super-unicorns like Databricks* and UiPath, which have each raised private financing rounds at valuations of more than $20 billion, per public reports, which is unprecedented in the software industry.


Source: Tech Crunch

Can the tech trade show return in 2021?

The past year has been a devastating one for the conference industry. It’s certainly an issue we’ve grappled with here at TechCrunch, as we’ve worked to move our programming to a virtual setting. Clearly each individual case calls for an individual solution, dependent on geography, attendance and a variety of other factors.

IFA has proven itself bullish on the in-person element. The Berlin tech show was one of a small handful of these sorts of events to go on with the show in Europe. The organization held an in-person event in September, albeit at a dramatically scaled-back rate.

“To be a little poetic, usually in the late summer, there’s a special air in Berlin and you go out in the morning, you feel this air,” director Jens Heithecker told me of last year’s event, which scaled back to around 170 exhibitors from 2,300.

Perhaps unsurprisingly, the organization is planning to come back big this year, in spite of prolonged concerns around COVID-19 and its variants. A press release announcing the show’s fall return is downright celebratory.

“With the world on course to emerge from the pandemic, IFA Berlin is set to take place as a full-scale, real-life event from 3 – 7 September 2021,” the company writes. “Huge interest from brands, manufacturers and retailers across all industry sectors to exhibit, network and co-innovate on location in Berlin.”

The organization highlights some health and safety measures that are being carried over from last year’s event. But while it’s not quite ready to talk scale yet, the organization is highlighting a number of new tracks for the conference.

“As always, keeping our visitors and exhibitors safe is our top priority,” it said in a statement. “Of course, with all our precautions to ensure everybody’s good health, we don’t expect IFA Berlin 2021 to set new records. However, the trend is clear: IFA Berlin is set for a full-scale comeback, to lead our industry once more.”

Over in Spain, the GSMA is still working on its messaging as a number of large companies have already announced they intend to only attend the show “virtually.”

Organizers offered TechCrunch the following statement:

We appreciate that it will not be possible for everyone to attend MWC Barcelona 2021, but we are pleased that exhibitors including Verizon*, Orange and Kasperksy are excited to join us in Barcelona. To ensure everyone can enjoy the unique MWC experience, we have developed an industry-leading virtual event platform. The in-person and virtual options are provided so that all friends of MWC Barcelona can attend and participate in a way that works for them. We respect the decisions that have been made by some exhibitors and are working with them to move their participation to the virtual platform.

[*Disclosure: Verizon owns TechCrunch]

Google, IBM, Nokia, Sony, Oracle and Ericsson have already announced they won’t be attending the show in person. Other large names are seemingly undecided. The whole thing is reminiscent of the lead-up to last year’s event, which was ultimately canceled.

The necessity of these large events was called into question prior to the pandemic, but the shift to virtual events has truly brought the topic into sharp relief. It’s true that there’s still value in an in-person event for hardware, specifically, but many have learned to adapt to a virtual setting. Even though if the last CES taught us anything, it’s that there are still a whole lot of kinks to work out with the system, especially as it pertains to prioritizing content all effectively being channeled through the same funnel.

People’s willingness to attend these events is based on a broad range of factors. At the very base level, there’s a question of personal comfortability (I can’t be the only one who has a visceral reaction every time they see crowded photos from past events). For many, it will be a bit of a shock to the system to suddenly attend a large indoor conference. There are factors like vaccinations and a particular region’s handling of the pandemic (all of which can wildly swing in the course of several months).

Just today, Germany’s Health Minister sounded the red alert, asking states to tighten restrictions. “We know from last autumn what happens when we don’t act quickly,” Jens Spahn warned the media.

There are a slew of other factors, including a potential attendee’s location and their workplace’s willingness to approve travel. Many companies have restricted business travel to all but the most essential trips. Depending on what you do for a living, your definition of “essential” may vary. But given how much can potentially change in that time, the soundest strategy for many is planning to tackle things remotely.

Earlier this week, the GSMA sent out its own email to previous attendees titled, “Why do you believe MWC Barcelona 2021 will take place?” The note seems to be a direct response to stories about exhibitors opting for a virtual presence.

“Depending on when you are reading this, we will be about 12 weeks away from the doors opening for MWC21 in Barcelona,” CEO John Hoffman wrote. “To say that the last year has been disruptive is an understatement and my thoughts are with anyone who has been impacted by COVID-19. I am not only hopeful about the future, but I am also excited about convening our ecosystem at MWC21. We recognise that not everyone will be able to attend in person and that is fine as we will augment our physical event with our MWC virtual program bringing you content from the show.”

Canceling a flagship show one year could have been utterly devastating. For many of these organizers — and the local governments who rely on tourism money — two years might seem unthinkable. MWC’s virtual strategy in year one of the pandemic was, understandably, undercooked.

More than a year into this, however, the GSMA and organizations like it hopefully have more robust strategies in place. The fact of the matter is that going virtual isn’t a one- or two-off. For many companies and people profoundly impacted by the pandemic, this is what the future looks like.


Source: Tech Crunch

Ford takes aim at Tesla, GM with its new hands-free driving system

Ford will debut its new hands-free driving feature on the 2021 F-150 pickup truck and certain 2021 Mustang Mach-E models through a software update later this year, technology that the automaker developed to rival similar systems from Tesla and GM.

That hands-free capability — which uses camera, radar sensors and software to provide a combination of adaptive cruise control, lane centering and speed sign recognition — has undergone some 500,000 miles of development testing, Ford emphasized in its announcement and tweet from its CEO Jim Farley in a not-so-subtle dig at Tesla’s approach of rolling out beta software to customers. The system also has an in-cabin camera that monitors eye gaze and head position to help ensure the driver’s eyes remain on the road.

The hands-free system will be available on vehicles equipped with Ford’s Co-Pilot360 Technology and will only work on certain sections of divided highways that Ford. The system, which will be rolled out via software updates later this year, will initially be available on more than 100,000 miles of highways in North America.

The system does comes with a price. BlueCruise software, which includes a three-year service period, will cost $600. The price of upgrading the hardware will depend on the vehicle. For instance, on F-150 owners will have to plunk down another $995 for the hardware, while owners of the “select” Mustang Mach-E model variant will have to pay an additional $2,600. BlueCruise comes standard on CA Route 1, Premium and First Edition variants of the Mustang Mach-E.

While nearly every automaker offers some driver assistance features, Ford is clearly aiming to compete with or capture market share away from GM and Tesla — the two companies with the best-known and capable ADAS. Convincing customers that its system is worth the expense will be critical to meeting its internal target of selling more than 100,000 vehicles equipped with BlueCruise in the first year, based on company sales and take-rate projections.

GM Super Cruise uses a combination of lidar map data, high-precision GPS, cameras and radar sensors, as well as a driver attention system, which monitors the person behind the wheel to ensure they’re paying attention. Unlike Tesla’s Autopilot driver assistance system, users of Super Cruise do not need to have their hands on the wheel. However, their eyes must remain directed straight ahead.

Tesla’s Autopilot feature also combines sensors like cameras and radar, computing power and software. Autopilot, which comes standard in all new Tesla vehicles, will steer, accelerate and brake automatically within its lane. Tesla uses a torque sensor in the steering wheel to determine if drivers are paying attention, although many owners have found and publicly documented hacks so they can keep their hands off the wheels and eyes off the road ahead. Tesla charges $10,000 for its upgrade to FSD (its own internal branding meant to stand for full self-driving). FSD is not an autonomous system. It does provide a number of more capable driver assist functions including automatic lane changes, the ability to recognize and act upon traffic lights and stop signs and a navigation feature that will suggest lane changes on route and automatically steer the vehicle toward highway interchanges and exits.

Ford said that its system communicates with drivers in different ways, including displaying text and blue lighting cues in the instrument cluster, which it says is effective even for those with color blindness.

The so-called BlueCruise hands-free technology will be offered in other Ford vehicle models in the future, the company said. Drivers who opt for the technology will continue to receive software updates as it is improved. Ford said future improvements will include a feature that will let the vehicle change lanes by tapping the turn signal indicator as well as one that will predict and then adjust vehicle speed for roundabouts and curves. The company also said it plans to offer regular mapping updates.


Source: Tech Crunch

TikTok funds first episodic public health series ‘VIRAL’ from NowThis

TikTok is taking another step towards directly funding publishers’ content with today’s announcement that it’s financially backing the production of media publisher NowThis’ new series, “VIRAL,” which will feature interviews with public health experts and a live Q&A session focused on answering questions about the pandemic. The partnership represents TikTok’s first-ever funding of an episodic series from a publisher, though TikTok has previously funded creator content.

Through TikTok’s Instructive Accelerator Program, which was formerly known as the Creative Learning Fund, other TikTok publishers have received grants and hands-on support from TikTok so they could produce quality instructive content for TikTok’s #LearnOnTikTok initiative. The program today is structured as four, eight-week cycles during which time publishers post videos four times per week.

NowThis had also participated in the Creative Learning Fund last year and was selected for the latest cycle of the Instructive Accelerator Program. But its “VIRAL” series is separate from these efforts.

NowThis says it brought the concept for the show to TikTok earlier this year outside of the accelerator program, and TikTok greenlit it. TikTok then co-produced the series and provided some funding. Neither NowThis nor TikTok would comment on the extent of the financial backing involved, however.

The “VIRAL” series itself is hosted by infectious disease clinical researcher Laurel Bristow, who spent the last year working on COVID treatments and research. Every Thursday, Bristow will break down COVID facts in easy-to-understand language, NowThis says, including things like vaccine efficacy, transmission timelines, and treatment. The show will also bust COVID myths, provide information about ongoing public health risks, and feature interviews with a cross-section of experts.

Each episode of the will be 45 minutes in length and will also include an interactive segment where the TikTok viewing audience will be able to engage in a real-time Q&A session about the show’s content. In total, five episodes are being produced, and will air starting on Thursday April 15 at 6 PM ET and will run through Thursday May 13 on the @NowThis main TikTok page.

@nowthisTune in to our new TikTok live show VIRAL on Thursdays at 6pm ET with host @kinggutterbaby

♬ original sound – nowthis

NowThis has become one of the most-followed news media accounts on TikTok, with 4.6 million followers across its news and politics channels, since launching a little over a year ago. Because of its focus on video, it’s been a good fit for the TikTok’s platform.

The approach TikTok is taking with “VIRAL’s” production, it’s worth noting, stands in contrast to how other social media platforms are handling the pandemic and COVID-19 information. While most, including TikTok, have pledged to fact check COVID-19 information, remove misinformation and conspiracies, point users to official sources for health information, and provide other resources, TikTok is directly funding public health content featuring scientists and researchers, and then promoting it on its network.

The company explained to TechCrunch its thinking on the matter.

“As the pandemic continues to evolve, we think it’s important to provide our community an outlet to dispel misinformation and communicate with public health experts in real-time,” said Robbie Levin, Manager of Media Partnerships at TikTok. “NowThis has consistently been a great partner that produces engaging and informative content, so we felt this series would be an impactful and important avenue for our users to receive credible information on our platform,” Levin noted.

While the pandemic has driven the topic of choice here, paying creators for content is not new. And TikTok isn’t the only one to do so. Instagram and Snapchat are both funding creator content for their TikTok clones, Reels and Spotlight, respectively. And new social platforms like Clubhouse are funding creators’ shows, as well.

TikTok says it’s not currently talking to other publishers to produce more series like “VIRAL,” but it isn’t ruling out the idea of expanding its creator funding and producing efforts. In addition to its accelerator program, which is continuing, TikTok says if “VIRAL” proves successful and the community responds positively, it will pursue similar opportunities in the future.


Source: Tech Crunch

Beat the deadline: Apply to compete in Startup Battlefield at TC Disrupt 2021

Startup Battlefield — the matriarch of all pitch competitions — is the stuff of tech legend. Heck, it even played a role in the HBO show, “Silicon Valley,” and its influence touches early-stage startups around the globe. Under no circumstance will you find a bigger, better platform for launching your startup to the world.

Battlefield has a long history of producing notable names. Need an example? A little startup by the name of Dropbox competed in the Battlefield at TC50 (the precursor to Disrupt) way back in 2008.

TechCrunch is on the hunt for innovative, game-changing startups to take the Startup Battlefield challenge and wrangle with the best-of-the-best at TC Disrupt 2021 in September. Are you game?

Apply to compete in Startup Battlefield before the deadline closes on May 13 11:59 pm (PT).

The stakes: A shot at $100,000 in equity-free prize money. Major exposure for all competing startups — think investors eager to find and fund the next big thing, journalists in search of exciting, game-changing startups to cover and potential customers and partners who can help take your business to new levels of success.

The investment: Your time. Yup, that’s it. Appyling to and participating in Startup Battlefield is 100 percent free. No fees, no equity cut. You simply invest your time — all participating founders receive several weeks of training with the Startup Battlefield team. Your demo and presentation will be, well, pitch perfect when you deliver it to panels of top VC judges. And you’ll be thoroughly prepped to handle the Q&A that follows.

The perks: In addition to the massive interest from just about all Disrupt attendees, competing startups get exhibition space in the Startup Alley expo area, free passes to future TechCrunch events, a free membership to Extra Crunch and invitations to private events like the Startup Battlefield reception.

You’ll meet members of the Startup Battlefield alumni community — we’re talking about 922 companies (like Vurb, Mint, Yammer and, yes, Dropbox) that have collectively raised $9.5 billion and produced 117 exits. Once Disrupt ends, you’re part of this phenomenal community — just imagine the networking possibilities.

The details: Read more about how Startup Battlefield works.

TC Disrupt 2021 takes place September 21-23. If you’ve got an innovative, game-changing startup, apply to compete in Startup Battlefield. Make sure you submit your completed application before the deadline expires on May 13 11:59 pm (PT).

Is your company interested in sponsoring or exhibiting at Disrupt 2021? Contact our sponsorship sales team by filling out this form.

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Source: Tech Crunch

Kroger launches its first Ocado-powered ‘shed’, a massive, robot-filled fulfillment center in Ohio

After inking a deal to work together almost three years ago, U.S. supermarket chain Kroger and U.K. online grocer Ocado today took the wraps off the first major product of that deal. Kroger has launched a new Ocado-powered customer fulfillment center in Monroe, Ohio, outside of Cincinnati, a gigantic warehouse covering 375,000 square feet and thousands of products for packing and delivering Kroger orders from online shoppers.

Built with a giant grid along the floor, “the shed”, as Ocado calls its warehouses, will feature some 1,000 robots alongside 400 human employees to pick, sort and move around items. It is expected to process as much as $700 million in sales annually, the sales of 20 brick-and-mortar stores.

Those orders, in turn, will be delivered in temperature-controlled Kroger Delivery vans, built on the model of Ocado’s vans in the US and able to store up to 20 orders. These will also be run using Ocado software, mapping algorithms to optimize deliveries along the fastest and most fuel-efficient routes.

The partnership was a long time in the making but the focus on what has come out of it is probably at its keenest right now, given the huge boost online shopping has had in the past year. The Covid-19 pandemic, and the resulting push for more social distancing, has driven a lot of people to the internet to shop, opting for deliveries over physical store visits for some or all of their food and other weekly essentials.

In call today with journalists, Rodney McMullen, Kroger’s chairman and CEO, said that delivery had grown 150% for Kroger last year. While some of that may well melt back into physical shopping as and when Covid-19 cases wane (fingers crossed), many in the industry believe that the genie has been let out of the bottle, so to speak: many consumers introduced to shopping online will stay, at least in part, and so this is about building infrastructure to meet that new demand.

(And there is some data that backs that up: Ocado CEO and co-founder Tim Steiner noted that at Ocado, pre-pandemic the average order value for the company was £105 ($144). That grew to £180 last year, and are at £120.)

Kroger, like many brick-and-mortar players, has been building out multiple fronts in its digital strategy. Alongside Ocado, the company has also been investing in technology to boost the efficiency of its in-store operations (for example by working with companies like Shelf Engine), and it has a grocery delivery partnership with Instacart.

That partnership with Instacart will remain in place, not least because it covers a much wider geography than the Ocado approach, which is live now in Cincinnati, and sounds like it will also expand to Florida. While Kroger today said that CFCs will vary in size and be built on the concept of “modules” (the Monroe facility is built on seven modules), this is still a capital intensive approach compared to the Instacart model, so might overall face a slower rollout and perhaps only make sense in Kroger’s denser markets.

“The two partnerships are critical to Kroger and our customers,” said Yael Cosset, Kroger’s CIO, in the call today. “We expect to work very closely in strategic partnership with Instacart and with Ocado.”

Ocado, an early player that started out in the UK back in 2000, is seen by many as the industry standard for how to build and run an online-only grocery business.

The company has been expanding its reach by way of taking the technology that it has built for itself and turning it into a product — a process that is still very much in development, with the company working now on robotic pickers and other autonomous systems, along with other technology to power and make its delivery service more efficient.

Ocado’s “AWS” strategy of turning tech that it has built for itself into a product to sell to others has born fruit: it now has partnerships to power online grocery services, and specifically fulfillment centers, in Japan (with Aeon), France (with Casino) and Canada (with Sobeys). That means the Kroger rollout is now a tested model, but it’s still a very notable move for the company to break into the U.S. while at the same time giving Kroger a much-needed bit of infrastructure to better compete with bigger players in the country like Walmart and Amazon.

In that regard, it will be interesting to see how and if Kroger leverages its much bigger Ocado-powered infrastructure for its other projects. The company is working with Mirakl to develop its own marketplace for third-party retailers, going head to head with similar offerings from — yes — Amazon and Walmart.


Source: Tech Crunch