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January 17, 2019
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Tor pulls in record donations as it lessens reliance on US government grants

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Tor, the open source initiative which provides a more secure way to access the internet, is continuing to diversify its funding away from its long-standing reliance on U.S. government grants.

The Tor Foundation — the organization behind the service which stands for ‘The Onion Router’ — announced this week that it brought in a record $460,000 from individual donors in 2018. In addition, recently released financial information shows it raised a record $4.13 million from all sources in 2017 thanks to a growth in non-U.S. government donors.

The individual donation push represents an increase on the $400,000 it raised in 2017. A large part of that is down to Tor ally Mozilla, which once again pledged to match donations in the closing months of the year, while an anonymous individual matched all new backers who pledged up to $20,000.

Overall, the foundation said that it attracted donations from 115 countries worldwide in 2018 which reflects its importance outside of the U.S.

The record donation haul comes weeks after the Tor Foundation quietly revealed its latest financials — for 2017 — which show it has lessened its dependence on U.S. government sources. That’s been a key goal for some time, particularly after allegations that the FBI paid Carnegie Mellon researchers to help crack Tor, which served as a major motivation for the introduction of fundraising drives in 2015.

Back in 2015, U.S. government sources accounted for 80-90 percent of its financial backing, but that fell to just over 50 percent in 2017. The addition of a Swedish government agency, which provided $600,000, helped on that front as well as corporate donations from Mozilla ($520,000) and DuckDuckGo ($25,000), more than $400,000 from a range of private foundations, and, of course, those donations from individuals.

Tor is best known for being used by NSA whistleblower Edward Snowden but, with governments across the world cracking down on the internet, it is a resource that’s increasingly necessary if we are to guard the world’s right to a free internet.

Tor has certainly been busy making its technology more accessible over the last year.

It launched its first official mobile browser for Android in September and the same month it released TorBrowser 8.0, its most usable browser yet which is based on Firefox’s 2017 Quantum structure. It is also worked closely with Mozilla to bring Tor into Firefox itself as it has already done with Brave, a browser firm led by former Mozilla CEO Brendan Eich.

Beyond the browser and the Tor network itself, which is designed to minimize the potential for network surveillance, the organization also develops a range of other projects. More than two million people are estimated to use Tor, according to data from the organization.

News Source = techcrunch.com

VLC prepares to add AirPlay support as it crosses 3 billion downloads

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VLC, the hugely popular media playing service, is filling one of its gaps with the addition of AirPlay support as it has just crossed an incredible three billion users.

The new feature was revealed by Jean-Baptiste Kempf, one of the service’s lead developers, in an interview with Variety at CES and it will give users a chance to beam content from their Android or iOS device to an Apple TV. The addition, which is due in the upcoming version 4 of VLC, is the biggest new feature since the service added Chromecast support last summer.

But that’s not all that the dozen or so people on the VLC development team are working on.

In addition, Variety reports that VLC is preparing to enable native support for VR content. Instead of SDKs, the team has reversed engineered popular hardware to offer features that will include the option to watch 2D content in a cinema-style environment. There also are plans to bring the service to more platforms, with VentureBeat reporting that the VLC team is eyeing PlayStation 4, Nintendo Switch and Roku devices.

VLC, which is managed by nonprofit parent VideonLAN, racked up its three millionth download at CES, where it celebrated with the live ticker pictured above. The service reached one billion downloads back in May 2012, which represents incredible growth for a venture that began life as a project from École Centrale Paris students in 1996.

News Source = techcrunch.com

Millions of Android users tricked into downloading 85 adware apps from Google Play

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Another day, another batch of bad apps in Google Play.

Researchers at security firm Trend Micro have discovered dozens of apps, including popular utilities and games, to serve a ton of deceptively displayed ads — including full-screen ads, hidden ads and running in the background to squeeze as much money out of unsuspecting Android users.

In all, the researchers found 85 apps pushing adware, totaling at least 9 million affected users.

One app — a universal TV remote app for Android — had more than five million users alone, despite a rash of negative reviews and complaints that ads were “hidden in the background.” Other users said that there were “so many ads, [they] can’t even use it.”

The researchers tested each app and found that most shared the same or similar code, and often the apps were similarly named. At every turn, tap or click, the app would display an ad, they found. In doing so, the app generates money for the app maker.

Some of the bad adware-ridden apps found by security researchers. (Image: Trend Micro)

Adware-fueled apps might not seem as other apps packed with malware or hidden functionality, such as apps that pull malicious payloads from another server after the app is installed. At scale, that can amount to thousands of fraudulent ad dollars each week. Some ads also have a tendency to be malicious, containing hidden code that tries to trick users into installing malware on their phones or computers.

Some of the affected apps include: A/C Air Conditioner Remote, Police Chase Extreme City 3D Game, Easy Universal TV Remote, Garage Door Remote Control, Prado Parking City 3D Game, and more. (You can find a full list of apps here.)

Google told TechCrunch that it had removed the apps, but a spokesperson did not comment further.

We tried reaching out to the universal TV remote app creator but the registered email on the since-removed Google Play store points to a domain that no longer exists.

Despite Google’s best efforts in scanning apps before they’re accepted into Google Play, malicious apps are one of the biggest and most common threats to Android users. Google pulled more than 700,000 malicious apps from Google Play in the past year alone, and has tried to improve its back-end to prevent malicious apps from getting into the store in the first place.

Yet the search and mobile giant continues to battle rogue and malicious apps, pulling at least 13 malicious apps in sweep in November alone.

News Source = techcrunch.com

Chinese app developers have invaded India

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If you’ve conquered China, then India — the world’s second-largest country based on population — is the obvious next port of call, and that’s exactly what has happened in the world of consumer apps.

Following the lead of Chinese smartphone makers like Xiaomi and Oppo, which have dominated mobile sales in India for some time, the content behind the touchscreen glass in India is increasingly now from China, too. That’s according to a report from FactorDaily, which found that 44 of the top 100 Android apps in India were developed by Chinese companies, up from just 18 one year prior. (The focus is on Android because it is the overwhelming choice of operating system among India’s estimated 500 million internet users.)

The list of top Chinese apps includes major names like ByteDance, the world’s highest-valued startup, which offers TikTok and local language news app Helo in India, and Alibaba’s UCbrowser, as well as lesser-known quantities like Tencent-backed NewsDog and quiet-yet-prolific streaming app maker Bigo.

Citing data from Sensor Tower, the report found that five of the top 10 Android apps in India are from China, up from just two at the end of 2017.

For anyone who has been watching the Indian technology scene in recent years, this “Chinese app store invasion” will be of little surprise, although the speed of change has been unexpected.

China’s two biggest companies, Alibaba and Tencent, have poured significant amounts into promising Indian startups in recent years, setting the stage for others to follow suit and move into India in search of growth.

Alibaba bought into Snapdeal and Paytm via multi-hundred-million-dollar investments in 2015, and the pace has only quickened since then. In 2017, Tencent invested in Gaana (music streaming) and Swiggy (food delivery) in major deals, having backed Byju’s (education) and Ola (ride-hailing) the year prior. The pair also launched local cloud computing services inside India last year.

Beyond those two, Xiaomi has gone beyond selling phones to back local companies and develop local services for its customers.

That local approach appears to have been the key for those app makers which have found success in India. Rather than taking a very rigid approach like Chinese messaging app WeChat — owned by Tencent, which failed in India — the likes of ByteDance have developed local teams and, in some cases, entirely local apps dedicated to India. With the next hundreds of millions of internet users in India tipped to come from more rural parts of the country, vernacular languages, local content and voice-enabled tech are some of the key strategies that, like their phone-making cousins, Chinese app developers will need to focus on to ensure that they aren’t just a flash in the pan in India.

You can read more at FactorDaily.

News Source = techcrunch.com

Epic Games, the creator of Fortnite, banked a $3 billion profit in 2018

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Epic Games had as good a year in 2018 as any company in tech. Fortnite became the world’s most popular game, growing the company’s valuation to $15 billion but it has helped the company pile up cash, too. Epic grossed a $3 billion profit for this year fuelled by the continued success of Fortnite, a source with knowledge of the business told TechCrunch.

Epic did not respond to a request for comment.

Fortnite, which is free to play but makes money selling digital items, has popularized the battle royale category — think Lord of the Flies meets Hunger Games — almost single-handedly and it has been the standout title for the U.S-based game publisher.

Epic, which was founded way back in 1991, hasn’t given revenue figures for its smash hit — which has 125 million players — but this new profit milestone, combined with other pieces of data, gives an idea of the success that the company is seeing as a result of a prescient change in strategy made six years ago.

This past September, Epic commanded a valuation of nearly $15 billion, according to the Wall Street Journal, as marquee investors like KKR, Kleiner Perkins and Lightspeed piled in on a $1.25 billion round to grab a slice of the red-hot development firm. However, the investment cards haven’t always been stacked in Epic’s favor.

China’s Tencent, the maker of blockbuster chat app WeChat and a prolific games firm in its own right, became the first outside investor in Epic’s business back in 2012 when it injected $330 million in exchange for a 40 percent stake in the business.

Back then, Epic was best known for Unreal Engine, the third-party development platform that it still operates today, and top-selling titles like Gears of War.

Why would a proven company give up such a huge slice of its business? Executives believed that Epic, as it was, was living on borrow time. They sensed a change in the way games were headed based on diminishing returns and growing budgets for console games, the increase of ‘live’ games like League of Legends and the emerging role of smartphones.

Speaking to Polygon about the Tencent deal, Epic CEO Tim Sweeney explained that the investment money from Tencent allowed the company to go down the route of freemium games rather than big box titles. That’s a strategy Sweeney called “Epic 4.0.”

“We realized that the business really needed to change its approach quite significantly. We were seeing some of the best games in the industry being built and operated as live games over time rather than big retail releases. We recognized that the ideal role for Epic in the industry is to drive that, and so we began the transition of being a fairly narrow console developer focused on Xbox to being a multi-platform game developer and self publisher, and indie on a larger scale,” he explained.

Tencent, Sweeney added, has provided “an enormous amount of useful advice” while the capital enabled Epic to “make this huge leap without the immediate of fear of money.”

LOS ANGELES, CA – JUNE 12: Gamers ‘Ninja’ (L) and ‘Marshmello’ compete in the Epic Games Fortnite E3 Tournament at the Banc of California Stadium on June 12, 2018 in Los Angeles, California. (Photo by Christian Petersen/Getty Images)

Epic never had a problem making money — Sweeney told Polygon the first Gear of Wars release grossed $100 million on a $12 million development budget — but with Fortnite the company has redefined modern gaming, both by making true cross-platform experiences possible and by pulling in vast amounts of money.

As a private company, Epic keeps its financials closely guarded. But digging beyond the $3 billion figure — which, to be clear, is annual profit not revenue — there are clues as to just how big a money-spinner Fortnite is. Certainly, there’s room to wonder whether analyst predictions this summer that Fortnite would gross $2 billion this year were too conservative.

The most recent data comes from November when Sensor Tower estimates that iOS users alone were spending $1.23 million per day. That helped the game bank $37 million in the month and take its total earnings within Apple’s iOS platform to more than $385 million.

But, as mentioned, Fortnite is a cross-platform title that supports PlayStation, Xbox, Switch, PC, Mac, Android and iOS. Aggregating revenue cross those platforms isn’t easy, and the only real estimate comes from earlier this year when Super Data Research concluded that the game made $318 million in May across all platforms.

That is, of course, when Fortnite was fresh on iOS, non-existent on Android and with fewer overall players.

We can deduct from Sensor Tower’s November estimate that iOS pulled in $385 million over eight months — between April and November — which is around $48 million per month on average. Android is harder to calculate since Epic skipped Google’s Play Store by distributing its own launcher. While it quickly picked up 15 million Android users within the first month, tracking that spending off-platform is a huge challenge. Some estimates predicted that Google would miss out on around $50 million in lost earnings this year because in-app purchases on Android would not cross its services.

There are a few factors to add further uncertainty.

Fornite spending tends to spike around the release of new seasons — updated versions of the game — since users are encouraged to buy specific packages at the start. The latest, Season 7, dropped early this month with a range of tweaks for the Christmas period. Give the increased velocity that Fortnite is picking up players and the appeal of the festive period, this could have been its biggest revenue generator to date but there’s not yet any indicator of how it performed.

More broadly, Fortnite has undoubtedly lost out on revenue in China, which frozen new game licenses nine months ago thereby preventing any publishers from monetizing new titles over that period.

Tencent, which publishes Fortnite in China, did release the game in the country but it hasn’t been able to draw revenue from it yet. The Chinese government announced last week that it is close to approving its first batch of new titles but it isn’t clear which games are included and when the process will be done.

Already, the effects have been felt.

Games are forecast to generate nearly $40 billion in revenue in China this year, according to market researcher Newzoo. However, the industry saw its slowest growth over the last 10 years as it grew 5.4 percent year-over-year during the first half of 2018, according to a report by Beijing-based research firm GPC and China’s official gaming association CNG.

Fortnite and PUBG — another battle royale title backed by Tencent — have perhaps suffered the most since they are universally popular worldwide but unable to monetize in China. It seems almost certain that those two titles will receive a major marketing push if, as and when they receive the license and, if Epic can keep the game competitive as Sweeney believed it could back in 2012, then it could go on and make even more money in 2019.

Epic Games is taking on Steam with its own digital game store, which includes higher take-home revenue rates for developers.

But Epic isn’t relying solely on Fortnite.

A more lowkey but significant launch this month was the opening of the Epic Game Store which is aimed squarely at Steam, the leader in digital game sales.

While Fortnite is its most prolific release, Epic also makes money from other games, Unreal Engine and a recently launched online game store that rivals Steam. Epic’s big differentiator for the store is that it gives developers 88 percent of their revenue, as opposed to Value — the firm behind Steam — which keeps 30 percent, although it has added varying rates for more successful titles. Customers are promised a free title every two weeks.

Either way, Epic is betting that it can do a lot more than Fortnite which could mean that its profit margin is even higher come this time next year.

News Source = techcrunch.com

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