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June 16, 2019
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Subscription fatigue hasn’t hit yet

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U.S. consumers are still embracing subscriptions. More than a third (34%) of Americans say they believe they’ll increase the number of subscription services they use over the next two years, according to a new report from eMarketer. This is following an increase to 3 subscription services on average, up from 2.4 services five years ago.

The report cited data from subscription platform Zuora and The Harris Poll in making these determinations.

The study also debunks the idea that we’ve reached a point of subscription fatigue.

While only a third is planning to increase the number of subscriptions — a figure that’s in line with the worldwide average — the larger majority of U.S. internet users said they planned to use the same number of subscriptions services within two years as they do now.

In other words, they’re not paring down their subscriptions just yet — in fact, only 7 percent said they planned to subscribe to fewer services in the two years ahead.

However, that’s both good news and bad news for the overall subscription industry. On the one hand, it means there’s a healthy base of potential subscribers for new services. But it also means that many people may only adopt a new subscription by dropping another — perhaps to maintain their current budget.

Subscriptions, after all, may still feel like luxuries. No one needs Netflix, Spotify, groceries delivered to their home or curated clothing selections sent by mail, for example. There are non-subscription alternatives that are much more affordable. The question is which luxuries are worth the recurring bill?

The survey, however, did not define subscription services, which could include news and magazine subscriptions, digital streaming services, subscription box services, and more. But it did ask about consumers’ interest in the various categories.

Over half of U.S. consumers (57%) said they were interested in TV and video-on-demand services (like Netflix) and 38 percent were interested in music services.

Related to this, eMarketer forecasts U.S. over-the-top video viewers will top 193 million by 2021, or 57.3 percent of the population. Digital audio listeners will top 211 million by the same time, or 63.1 percent of the population.

The next most popular subscriptions in the survey were grocery delivery like AmazonFresh (32%) and meal delivery like Blue Apron (21%). Software and storage services like iCloud and subscription beauty services like Ipsy followed, each with 17 percent.

Consumers were less interested in subscription news and information and subscription boxes — the latter only saw 10 percent interest, in fact.

The figures should be taken with a grain of salt, of course. The meal kit market is actually struggling. The consulting firm NPD Group estimated that only 4 percent of U.S. consumers have even tried them. So there’s a big disconnect between what consumers say they’re interested in, and what they actually do.

Meanwhile, the supposedly less popular news and information services market is, in some cases, booming. The New York Times, for instance, just this month posted a higher profit and added 223,000 digital subscribers to reach 4.5 million paying customers. And Apple now has “hundreds of people” working on Apple News+, it said this week. 

Of course, consumers will at some point reach a limit on the number of services they’re willing to pay for, but for the time being, the subscription economy appears solid.

 

Daily Crunch: New MacBook Pros have a keyboard fix

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The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. Apple announces new MacBook Pros with a keyboard fix, oh, and more powerful processors

Apple says it’s taking three steps to remedy the keyboard situation: It will be making a materials change to the MacBook Pro keyboard mechanism, it’s covering all butterfly keyboards across its notebook line in its Keyboard Service program and it’s improving the repair process in Apple Stores to make things faster.

The new laptops have more to offer than improved keyboards: Apple says the 15-inch MacBook Pro will run at double the speed of the previous quad-core models.

2. TransferWise now valued at $3.5B following a new $292M secondary round

While this is a secondary round (so no new cash is entering the TransferWise balance sheet), previous investors aren’t exiting — in fact, Andreessen Horowitz and Baillie Gifford are actually doubling down.

3. ARM halts Huawei relationship following US ban

The dominoes continue to fall for Huawei in the wake of a Trump-led U.S. trade ban.

4. Google says some G Suite user passwords were stored in plaintext since 2005

The search giant disclosed the exposure Tuesday but declined to say exactly how many enterprise customers were affected.

5. London’s Tube network to switch on Wi-Fi tracking by default in July

Transport for London writes that “secure, privacy-protected data collection will begin on July 8” — while touting additional services, such as improved alerts about delays and congestion, which it frames as “customer benefits,” as expected to launch “later in the year.”

6. Apple has a plan to make online ads more private

By taking the identifiable person out of the equation, Apple says its new technology can help preserve user privacy without reducing the effectiveness on ad campaigns.

7. The Exit: Getaround’s $300M roadtrip

Last month, Getaround acquired Parisian peer-to-peer car rental service Drivy. For more details about what lies ahead for Drivy and the Paris startup scene, we spoke to Alven Capital partner Jeremy Uzan, who first invested in Drivy’s seed round in 2013. (Extra Crunch membership required.)

Google’s new look for mobile search results puts site owners and publishers first

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Google today unveiled a new look for its mobile search results which gives sites a way to showcase their own branding, instead of looking like every other blue link. Before, the search results were blue and the source — a publisher’s site, for example — would appear below in a smaller, green font. Now, it’s the publisher who gets top billing. With the refresh, the source for the search result appears on top and includes the site’s own icon.

The revamp is subtle, but one that will likely please publishers as it gives them a way to stand out. After all, web searchers who are already familiar with the publisher’s site may choose to click through (or rather, tap through) to their link out of a personal preference — even if it’s further down on the results page.

In addition, the website branding can help web searchers better understand where the information is coming from — like an official site or well-known news publication, for example.

The update also impacts how Google Search ads appear.

Before, the word “Ad” would display in a small green box ahead of the source link. Now, the word “Ad” appears in a bolded, black font where the website icon would otherwise be. It’s a bit less noticeable that the top search results link is an ad because your eyes are drawn to the blue link — and because the word “Ad” no longer has a box around it.

Google says the new design will help it prepare for the search changes ahead as it enables the company to add more action buttons and previews to the search result cards, while still retaining attribution back to the source.

The company recently announced some of its plans for new search features at Google I/O earlier this month, including AR in search results, as well as better news coverage and support for podcast search. The latter will offer links to listen right in the search results as well as tools to save the podcast to play later.

In the meantime, site owners and publishers who want to customize their icon for their organic search listings can do so here.

Google says this new design is rolling out first to mobile users over the next few days.

Thousands of vulnerable TP-Link routers at risk of remote hijack

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Thousands of TP-Link routers are vulnerable to a bug that can be used to remotely take control the device, but it took over a year for the company to publish the patches on its website.

The vulnerability allows any low-skilled attacker to remotely gain full access to an affected router. The exploit relies on the router’s default password to work, which many don’t change.

In the worst case scnario, an attacker could target vulnerable devices on a massive scale, using similar mechanism to how botnets like Mirai worked — by scouring the web and hijacking routers using default passwords like “admin” and “pass”.

Andrew Mabbitt, founder of U.K. cybersecurity firm Fidus Information Security, first discovered and disclosed the remote code execution bug to TP-Link in October 2017. TP-Link released a patch a few weeks later for the vulnerable WR940N router, but Mabbitt warned TP-Link again in January 2018 that another router, TP-Link’s WR740N, was also vulnerable to the same bug because the company reused vulnerable code between devices.

TP-Link said the vulnerability was quickly patched in both routers. But when we checked, the firmware for WR740N wasn’t available on the website.

When asked, a TP-Link spokesperson said the update was “currently available when requested from tech support,” but wouldn’t explain why. Only after TechCrunch reached out, TP-Link updated the firmware page to include the latest security update.

Top countries with vulnerable WR740N routers. (Image: Shodan)

Routers have long been notorious for security problems. At the heart of any network, any flaw affecting a router can have disastrous effects on every connected device. By gaining complete control over the router, Mabbitt said an attacker could wreak havoc on a network. Modifying the settings on the router affects everyone who’s connected to the same network, like altering the DNS settings to trick users into visiting a fake page to steal their login credentials.

TP-Link declined to disclose how many potentially vulnerable routers it had sold, but said that the WR740N had been discontinued a year earlier in 2017. When we checked two search engines for exposed devices and databases, Shodan and Binary Edge, each suggested there are anywhere between 129,000 and 149,000 devices on the internet — though the number of vulnerable devices is likely far lower.

Mabbitt said he believed TP-Link still had a duty of care to alert customers of the update if thousands of devices are still vulnerable, rather than hoping they will contact the company’s tech support.

Both the U.K. and the U.S. state of California are set to soon require companies to sell devices with unique default passwords to prevent botnets from hijacking internet-connected devices at scale and using their collective internet bandwidth to knock websites offline.

The Mirai botnet downed Dyn, a domain name service giant, which knocked dozens of major sites offline for hours — including Twitter, Spotify and SoundCloud.

Read more:

Now at Google, Facebook’s former teen-in-residence launches new social game Emojishot

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Facebook’s former teen-in-residence Michael Sayman, now at Google, is back today with the launch of a new game: Emojishot, an emoji-based guessing game for iOS, built over the past ten weeks within Google’s in-house incubator, Area 120.

The game, which is basically a version of charades using emoji characters, is notable because of its creator.

By age 17, Sayman had launched five apps and had become Facebook’s youngest-ever employee. Best known for his hit game 4 Snaps, the developer caught Mark Zuckerberg’s eye, earning him a demo spot on stage at Facebook’s F8 conference. While at Facebook, Sayman built Facebook’s teen app Lifestage — a Snapchat-like standalone project which allowed the company to explore new concepts around social networking aimed at a younger demographic.

Lifestage was shut down two years ago, and Sayman defected to Google shortly afterward. At Google, he was rumored to be heading up an internal social gaming effort called Arcade where gamers played using accounts tied to their phone numbers — not a social network account.

At the time, HQ Trivia was still a hot title, not a novelty from a struggling startup — and the new gaming effort looked liked Google’s response. However, Arcade has always been only an Area 120 project, we understand.

To be clear, that means it’s not an official Google effort — as an Area 120 project, it’s not associated with any of Google’s broader efforts in gaming, social or anything else. Area 120 apps and services are instead built by small teams who are personally interested in pursuing an idea. In the case of Emojishot, it was Sayman’s own passion project.

Emojishot itself is meant to be played with friends, who take turns using emoji to create a picture so friends can guess the word. For example, the game’s screenshots show the word “kraken” may be drawn using an octopus, boat and arrow emojis. The emojis are selected from a keyboard below and can be resized to create the picture. This resulting picture is called the “emojishot,” and can also be saved to your Camera Roll.

Players can pick from a variety of words that unlock and get increasingly difficult as you successfully progress through the game. The puzzles can also be shared with friends to get help with solving, and there’s a “nudge” feature to encourage a friend to return to the game and play.

According to the game’s website, the idea was to make a fun game that explored emojis as art and a form of communication.

Unfortunately, we were unable to test it just yet, as the service wasn’t up-and-running at the time of publication. (The game is just now rolling out so it may not be fully functional until later today).

While there are other “Emoji Charades” games on the App Store, the current leading title is aimed at playing with friends at a party on the living room TV, not on phones with friends.

Sayman officially announced Emojishot today, noting his efforts at Area 120 and how the game came about.

“For the last year, I’ve been working in Area 120, Google’s workshop for experimental products. I’ve been exploring and rapidly prototyping a bunch of ideas, testing both internally and externally,” he says. “Ten weeks ago, we came up with the idea for an emoji-based guessing game. After a lot of testing and riffing on the idea, we’re excited that the first iteration — Emojishot — is now live on the iOS App Store…We’ve had a lot of fun with it and are excited to open it up to a wider audience,” Sayman added.

He notes that more improvements to the game will come over time, and offered to play with newcomers via his username “michael.”

The app is available to download from the U.S. iOS App Store here. An Android waitlist is here.

 

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