Daily Tech Snippet: Wednesday, July 1

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• Facebook is testing a more conservative definition of video views, but is still far more aggressive than YouTube in charging advertisers: While Facebook charges advertisers for videos the second they appear in a news feed, views are defined differently since users can easily scroll past the ads. Facebook considers a view to last three seconds compared with YouTube's 30-second rule. This has resulted in marketers' clips uploaded to Facebook to amass a wealth of views compared with those published on YouTube in recent months. But those views don't necessarily mean people are watching ads. Now, advertisers can start paying for videos with a cost-per-view rate that kicks in after a user watches for 10 seconds, making the ad seemingly more valuable to advertisers who want to pay for qualified views. Until now, advertisers have paid for videos immediately after they show up in a news feed—something akin to a cost-per-impression model. When Twitter launched autoplay video earlier this month, it tried to address concerns by promising brands 100 percent viewability: promising only to charge on video ads that have been seen 100 percent in full view of the user..


• Xiaomi Continues International Push, Starts Selling $160 Redmi 2 Phone in Brazil: Xiaomi made its expected move into the Brazil market on Tuesday, announcing plans to sell its affordable Redmi 2 smartphone for 499 Brazilian reals ($161). To avoid hefty taxes placed on foreign imports, Xiaomi is working with Foxconn to have the devices built in Brazil, with additional products coming soon.


• Online recharge and mobile wallet app MobiKwik targets $700M GTV in 2015-16, profits by 2016-17: MobiKwik.com, is gunning for a nearly four-fold jump in gross transaction value to $700 million (Rs 4,270 crore) this year. “We don’t have the audited numbers right now, but I can tell you that we have crossed the 2014-15 target of Rs 1200 crore ($190 million) sales and are looking forward to $700 million sales this year,” Upasana Taku, co-founder of the company told Techcircle. The Gurgaon-based company aims to turn profitable by financial year 2016-17. “We expect to meet our goal of 100 million users for the mobile wallet by 2016-17 and so next year we anticipate to start generating profits,” she added. Profitability is the holy grail for India’s fast growing consumer internet firms. MobiKwik’s competitor, the Alibaba-backed Paytm saw the gross value of the transactions conducted on its network rise to around Rs 4,000 crore by 2014-end from around Rs 1,000 crore the year before. Paytm is said to be targeting gross merchandise value (GMV) run rate of $3-4 billion by March 2015. MobiKwik plans to spend about Rs 100 crore on marketing this financial year. Most of the money will be deployed on television and online campaigns. MobiKwik is also betting big on joining hands with offline service provider. It started a service for offline players in March 2015 and has the likes of quick service restaurants, grocery stores and coffee stores on its platform. It has tie ups with Big Bazaar, Cafe Coffee Day and other players for the same.


• Apple Music First Look: Rich, Robust — But Confusing: Paid streaming music has arrived on Planet Apple, where it was regarded as unworthy for years. Today, the tech giant has entered the streaming music business with its much-anticipated Apple Music subscription service. Like other streaming services, it offers access to tens of millions of tracks for a monthly fee. Would I pay $10 a month — $120 a year — to use it? My answer is a tentative yes, with some caveats. Apple has built a handsome, robust app and service that goes well beyond just offering a huge catalog of music by providing many ways to discover and group music for a very wide range of tastes and moods. But it’s also uncharacteristically complicated by Apple standards, with everything from a global terrestrial radio station to numerous suggested playlists for different purposes in different places. One of the most confusing aspects of Apple Music is that it moves all your iTunes Music to the cloud, along with the streaming catalog. On the other hand, the service has three big strengths, in my view. First, it smoothly integrates the existing library of iTunes songs you own with the much larger catalog of music you are merely, in effect, renting. Second, while the service does use some algorithms, it suggests numerous playlists, albums and songs curated by 300 human editors, based on your tastes. Third, while Apple’s $10 monthly fee per user is both standard — and for some, pricey — the company is offering a family plan that cuts the price dramatically.


• LTE-U versus WiFi: The future of mobile data pits cellphone carriers against cable giants: To cellular providers, WiFi represents a huge missed opportunity. Internet consumption on cellular data networks — your 3G or 4G connection - could've grown by a whopping 84 percent last year, according to Cisco. But because consumers shunted so much traffic to WiFi, that figure was much lower, at 69 percent. Carriers could charge you for all that extra access to the mobile data network. Instead they're losing out when you hop onto WiFi at your home or office. And LTE-U is the industry's solution. The cable industry, on the other hand, wants to keep you on WiFi as much as possible. This is the math they fear: By 2019, Americans are expected to consume nearly 10 times more mobile data than they did in 2014. By then, 77 percent of all Internet traffic will be sent and received over mobile devices rather than stationary PCs. That's not good for cable, an industry that built its reputation on running fast (but fixed) Internet service into people's homes and businesses. You're probably familiar with 4G LTE, the current cutting edge of mobile data technology. Under ideal conditions, it provides download speeds that rival what you can get on a wired connection — fast enough to download a song in less than a minute. LTE-U is virtually identical to LTE, but with one key difference: It runs on the same frequencies that WiFi does. Unlike regular LTE, which piggybacks on airwaves owned exclusively by your carrier, LTE-U travels on public airwaves that are free to anyone. Garage door openers, cordless phones, WiFi routers — all also transmit over these open channels. Interference between the two technologies can slash WiFi transmission rates by 75 percent, according to a Google white paper filed last month to the federal government. The cable industry's top trade group, the National Cable and Telecommunications Association, argued the technology could be "disastrous" without further protections and "will severely degrade consumers' Wi-Fi experience, rendering unusable many services that are widespread today, to say nothing of the innovative new uses currently on the horizon."


• Google's Local Search, unlike Google's Organic Search, Favors Google+ Results, Yelp Claims: According to a highly critical new paper out from legal scholar Tim Wu, Harvard Business School professor Michael Luca and data scientists at Yelp, many of us are totally missing out on the information that’s most relevant, and critical, to our lives. In a statement to The Washington Post, Yelp vice president of public policy Luther Lowe uses this example: If a parent searches “pediatrician NYC,” he or she will, in a prominent first-page listing, see the names of seven pediatricians who happen to have Google+ or Google+ Local pages. “The Google organic ranking algorithm does a great job at identifying helpful content on the Web,” Lowe said. “But it’s sadly not being deployed in the most common user behavior on Google: local search.” According to Yelp, from one-third to one-half of all Google searches are local. They primarily involve something called the “Local OneBox” — the special, extra-prominent list of seven links that Google displays at the top of local search results. Local OneBox takes up a big chunk of first-page real estate, frequently at the very top of the page, which means people are disproportionately more likely to click into it than they are into regular links. Local OneBox also pulls exclusively from Google’s versions of specialized search sites, such as Google+ Local.


• Samsung, HTC suffer blowback from phone financing schemes of years past, as consumers turn slow to upgrade: It’s payback time for handset makers that long profited from Americans’ tendency to upgrade their mobile phones early and often. U.S. consumers got a taste for phone financing two years ago and never looked back. They bought fancy new devices for a few more dollars a month with no service contract attached. Now they’re holding on to their old smartphones longer than they did when they signed two-year contracts and got freebies, spelling further trouble for manufacturers like Samsung Electronics Co. and HTC Corp. that have struggled with declining sales. “When people spend $600 to $700, they are not in the mood to upgrade every year,” said independent wireless analyst Chetan Sharma. Thrifty consumers are starting to buy devices every 20 to 24 months instead of every 15 months when carriers subsidized all of their devices and made up the cost through higher service charges, he said. While iPhone maker Apple Inc. -- whose customers tend to be less price sensitive -- has remained largely unaffected, Samsung and HTC may see the most impact, analysts said. In a sign that the end of subsidies is on the horizon, Dallas-based AT and T asked in May that retail partners like Apple and Best Buy stop offering subsidized phones with two-year contracts and to sell them on its Next financing program instead. Verizon, which has been slower to move to phone financing, expects 50 percent of new sales to be on its Edge installment payment plan this year.


• Cisco to buy OpenDNS for $635 million to boost security business: Cisco said it would buy OpenDNS, a privately held cloud-based security firm, for $635 million, the latest move to boost its security business as cyber attacks increase in number and sophistication. Cisco has been buying a number of security companies, which has made its relatively tiny security business one of its fastest growing areas in the past two years. OpenDNS uses predictive intelligence to block malware, botnets and phishing threats that antivirus and firewalls miss. Cisco was a minority investor and was one of the backers that invested $35 million in OpenDNS in May last year. When Cisco buys stakes in startups, it often receives defensive rights that give it an edge to acquire companies it has invested in ahead of competitors. Cisco, whose security business is known for its firewalls, expanded into intrusion detection and prevention systems with the $2.7 billion acquisition of Sourcefire in 2013. Cisco, which has acquired dozens of companies over the years, is transitioning towards high-end switches and routers and investing in new products such as data analytics software and cloud-based tools for data centers. It bought malware analysis company ThreatGRID in 2014 and security advisory firm Neohapsis this year.