April 29, 2024

For Developing World, a Streamlined Facebook

Facebook soon plans to announce the first results of the initiative, which it calls Facebook for Every Phone: More than 100 million people, or roughly one out of eight of its mobile users worldwide, now regularly access the social network from more than 3,000 different models of feature phones, some costing as little as $20.

Many of those users, who rank among the world’s poorest people, pay little or nothing to download their Facebook news feeds and photos, with the data usage subsidized by phone carriers and manufacturers. 

Facebook has only just begun to sell ads to these customers, so it makes no money from them yet. But the countries in which the simple phone software is doing the best — India, Indonesia, Mexico, Brazil and Vietnam — are among the fastest-growing markets for use of the Internet and social networks, according to the research firm eMarketer.

Like many other giants of the technology industry, Facebook is struggling with the seismic shift of its customers away from computers to mobile devices and the erosion of profit that can bring.

Last year, the company overhauled its apps for Apple iPhones and Android-based smartphones to improve mobile access while introducing new types of ads that nudge users to install a new game or other apps on their phones. But customer growth in developed markets like the United States has still slowed markedly because just about everyone who wants to be on Facebook has already joined the network.

Analysts say Facebook has a powerful opportunity to win the long-term loyalty of millions of new global users by giving them their first taste of the Internet through Facebook on a simple cellphone.

“In a lot of foreign markets, people think that the Internet is Facebook,” said Clark Fredricksen, a vice president at eMarketer.

Those users, Facebook hopes, will become more attractive to advertisers as their incomes grow and they gain broader access to the Web.

The feature phone project was driven by a small group of people who joined Facebook in 2011, when it purchased a start-up called Snaptu. The team had to re-engineer Facebook’s software to drastically shrink the amount of data sent over slow cellular networks. They also had to find a way to quickly display familiar Facebook features like chat and photos on phones with very basic computing power and low-resolution screens.

“We actually run the apps on our servers,” said Ran Makavy, who was chief executive of Snaptu and now runs Facebook’s feature phone project. “The result was something that looks almost like a smartphone app.”

The software has features that are common in more advanced versions of Facebook, including sticker-size emoticons in chat and Instagram-style filters to dress up photos. (Facebook for Every Phone can be used by feature phone customers anywhere, including those in the United States. It can be downloaded from Facebook using the phone’s mobile browser or obtained from app stores operated by the phone maker or independent companies like Getjar.)

Brian Blau, who studies consumer technologies at the research firm Gartner, said that given Facebook’s mission of linking the entire globe through its service, it needed to reach out to the least tech-savvy customers.

“They talk about socially connecting the world together,” he said. “They can’t do that until they connect people who don’t have smartphones or computers.”

To understand how far Facebook has come in its approach to mobile devices, consider this: until two years ago, the only way to sign up for the service was through a Web browser, which is much slower to use than an app. Facebook originally viewed phones as mostly useful for posting status updates, not as a primary way to access the service, said Javier Olivan, who heads Facebook’s growth team.

Eventually, the company realized that tens of millions of people in developing countries were eager to try Facebook but had no access to a computer, nor could they afford the $600 iPhones or $40-a-month data plans common in the developed world.

“It became very obvious that the next wave of users would come on mobile only,” Mr. Olivan said in an interview last week.

Article source: http://www.nytimes.com/2013/07/22/technology/for-developing-world-a-lightweight-facebook.html?partner=rss&emc=rss

‘Saturday Night Live’ Archives Moving to Yahoo

But it’s reality now, as the owner of the “S.N.L.” archive, Broadway Video, tries to wring a profit out of the old episodes. On Wednesday, Yahoo announced that it had acquired the exclusive rights to classic clips from 1975 through 2012, effective in September. The clips will be removed from Hulu and NBC.com, where they currently reside, and be shown instead on Yahoo, which wants to share in the buzz the show creates.

The deal between Broadway Video and Yahoo highlights the jockeying among companies that want to have a library of online videos to call their own. A dizzying number of online video producers are pitching their programs to advertisers this month, ahead of the traditional television upfront sessions in May. While these Web programs’ quantity and quality are increasing quickly, there are doubts about whether the advertising dollars are.

“On one hand, digital video advertising is growing fast and its prominence is increasing,” said Clark Fredricksen of the research firm eMarketer. “On the other, compared to television, online video is an incredibly competitive market, where you have more companies fighting over far less.” Mr. Fredricksen’s company estimates that $4.1 billion will be spent on online video ads this year, in contrast to $66.4 billion on television ads.

“There are a handful of major conglomerates who split revenues from the huge TV-ad pie,” Mr. Fredricksen said, “while the digital video world features hundreds of companies fighting, comparatively, for scraps from the TV table.”

Attaching, barnaclelike, to television might be a way to stand out from the crowd. Yahoo, which is trying for a turnaround under its chief executive, Marissa Mayer, has content-sharing relationships with many major media companies, but its video hub, Yahoo Screen, has lagged rivals like Google, which owns YouTube.

Erin McPherson, a Yahoo vice president who oversees the company’s video business, said the company jumped at the “S.N.L.” opportunity. She said the “S.N.L.” clips would be “widely distributed” across Yahoo, suggesting a strategy that will go beyond the current Yahoo Screen site.

“Rather than competing with Hulu, Netflix or any other platform, we see this as a step toward adding scale and breadth to the great content we are already offering users,” Ms. McPherson said.

Yahoo and Broadway Video declined to comment on terms, but people with knowledge of the arrangement said access to the “S.N.L.” library had cost upward of $10 million a year in the past.

Hulu, the online video Web site owned by Comcast, The News Corporation and the Walt Disney Company, enjoyed an immediate bump in traffic when it added “SNL” to its collection. These days, however, Hulu — which its owners are considering selling — is concentrating on other content. It will promote several of its forthcoming original series at an event for advertisers next week.

Under the deal announced on Wednesday, Hulu will still stream clips and full episodes from the current television season. Yahoo will be able to do that, too. But Yahoo will have the old “S.N.L.” clips all to itself, giving it something special to show off — although only for one year. The deal will be up for renegotiation at that point.

Jack Sullivan, chief executive of Broadway Video, said the deal would let “S.N.L.” increase its distribution internationally, since the clips of classic episodes have generally only been accessible in North America in the past.

For a company like Yahoo, “having TV-like offerings is really important,” said Mike Vorhaus, president of the digital media consulting firm Magid Advisors. That’s because online video ads have partly taken the place of Web display ads, sometimes called banner ads, in advertisers’ budgets; as Mr. Vorhaus put it, “You can only take so much banner money away before there’s no banner money left at all.”

“Now they kind of have to pursue TV money,” he added.

Along the way they’re becoming more like TV. Earlier this year, a sendup of dating reality shows created by Yahoo, “Burning Love,” was deemed worthy of running on the cable channel E! as well. Sony, another company that will be presenting to advertisers next week, was recognized for treating Jerry Seinfeld’s experimental Web series “Comedians in Cars Getting Coffee” like a TV series when it ordered a 24-episode second season.

And Netflix, the ad-free streaming service that so many other companies want to resemble, was praised for commissioning “House of Cards,” the Washington thriller that could have fit right in on HBO or AMC. On Wednesday night, Netflix released a long-term vision statement for investors that summed up why it and so many of its competitors are optimistic about their chances: “While Internet TV is only a very small percent of video viewing today, we think it will grow every year,” it said, citing faster Internet speeds, sales of Internet-connected TV sets, improvements to TV apps and the possibilities for personalized online video ads.

The competition for Internet TV viewing, it concluded, “is just beginning.”

Article source: http://www.nytimes.com/2013/04/25/business/media/saturday-night-live-archives-moving-to-yahoo.html?partner=rss&emc=rss