Netflix

App revenue tops $39 billion in first half of 2019, up 15% from first half of last year

Posted by | analyst, android apps, app revenues, app stores, app-store, Apple, Apps, China, Google Play, instagram, iOS App Store, iOS apps, Mobile, mobile applications, mobile apps, mobile games, Netflix, online marketplaces, sensor tower, smartphones, streaming services, Tencent, tiktok, Tinder | No Comments

App store spending is continuing to grow, although not as quickly as in years past. According to a new report from Sensor Tower, the iOS App Store and Google Play combined brought in $39.7 billion in worldwide app revenue in the first half of 2019 — that’s up 15.4% over the $34.4 billion seen during the first half of last year. However, at that time, the $34.4 billion was a 27.8% increase from 2017’s numbers, then a combined $26.9 billion across both stores.

Apple’s App Store continues to massively outpace Google Play on consumer spending, the report also found.

In the first half of 2019, global consumers spent $25.5 billion on the iOS App Store, up 13.2% year-over-year from the $22.6 billion spent in the first half of 2018. Last year, the growth in consumer spending was 26.8%, for comparison’s sake.

Still, Apple’s estimated $25.5 billion in the first half of 2019 is 80% higher than Google Play’s estimated gross revenue of $14.2 billion — the latter a 19.6% increase from the first half of 2018.

The major factor in the slowing growth is iOS in China, which contributed to the slowdown in total growth. However, Sensor Tower expects to see China returning to positive growth over the next 12 months, we’re told.

To a smaller extent, the downturn could be attributed to changes with one of the top-earning apps across both app stores: Netflix.

Last year, Netflix dropped in-app subscription sign-ups for Android users. Then, at the end of December 2018, it did so for iOS users, too. That doesn’t immediately drop its revenue to zero, of course — it will continue to generate revenue from existing subscribers. But the number will decline, especially as Netflix expands globally without an in-app purchase option, and as lapsed subscribers return to renew online with Netflix directly.

In the first half of 2019, Netflix was the second highest earning non-game app with consumer spending of $339 million, Sensor Tower estimates, down from $459 million in the first half of 2018. (We should point out the firm bases its estimates on a 70/30 split between Netflix and Apple’s App Store that drops to 85/15 after the first year. To account for the mix of old and new subscribers, Sensor Tower factors in a 25% cut. But Daring Fireball’s John Gruber claims Netflix had a special relationship with Apple where it had an 85/15 cut from year one.)

In any event, Netflix’s contribution to the app stores’ revenue is on the decline.

In the first half of last year, Netflix had been the No. 1 non-game app for revenue. This year, that spot went to Tinder, which pulled in an estimated $497 million across the iOS App Store and Google Play, combined. That’s up 32% over the first half of 2018.

1h 2019 app revenue worldwide

But Tinder’s dominance could be a trend that doesn’t last.

According to recent data from eMarketer, dating app audiences have been growing slower than expected, causing the analyst firm to revise its user estimates downward. It now expects that 25.1 million U.S. adults will use a dating app monthly this year, down from its previous forecast of 25.4 million. It also expects that only 21% of U.S. single adults will use a dating app at all in 2019, and that will only grow to 23% by 2023.

That means Tinder’s time at the top could be overrun by newcomers in later months, especially as new streaming services get off the ground (assuming they offer in-app subscriptions); if TikTok starts taking monetization seriously; or if any other large apps from China find global audiences outside of China’s third-party app stores.

For example, Tencent Video grossed $278 million globally in the first half of 2019, outside of the third-party Chinese Android app stores. That made it the third-largest non-game app by revenue. And Chinese video platform iQIYI and YouTube were the No. 4 and No. 5 top-grossing apps, respectively.

Meanwhile, iOS app installs actually declined in the first half of the year, following the first quarter that saw a decline in downloads, Q1 2019, attributed to the downturn in China.

The App Store in the first half of 2019 accounted for 14.8 billion of the total 56.7 billion app installs.

Google Play installs in the first half of the year grew 16.4% to 41.9 billion, or about 2.8 times greater than the iOS volume.

1h 2019 app downloads worldwide

The most downloaded apps in the first half of 2019 were the same as before: WhatsApp, Messenger and Facebook led the top charts. But TikTok inched ahead of Instagram for the No. 4 spot, and it saw its installs grow around 28% to nearly 344 million worldwide.

In terms of mobile gaming specifically, spending was up 11.3% year-over-year in the first half of 2019, reaching $29.6 billion across the iOS App Store and Google Play. Thanks to the fallout of the game licensing freeze in China, App Store revenue growth for games was at $17.6 billion, or 7.8% year-over-year growth. Google Play game spending grew by 16.8% to $12 billion.

The top-grossing games, in order, were Tencent’s Honor of Kings, Fate/Grand Order, Monster Strike, Candy Crush Saga and PUBG Mobile.

1h 2019 game revenue worldwide

Meanwhile, the most downloaded games were Color Bump 3D, Garena Free Fire and PUBG Mobile.

Image credits: Sensor Tower

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Stranger Things portals have appeared in Fortnite

Posted by | Entertainment, epic games, fortnite, Gaming, Netflix, Stranger Things, TC | No Comments

This summer has blessed us with a wealth of awesome television options, from Big Little Lies to Chernobyl to The Handmaid’s Tale. And the good times keep rollin’. Tomorrow, Stranger Things Season 3 drops on Netflix.

To celebrate, it would appear that Epic Games is adding portals in Fortnite’s Mega Mall.

Netflix’s Chris Lee, director of interactive games, confirmed on a panel at E3 that there would be more crossover goodness after fans noticed the Scoops Ahoy ice cream store, which is the same name of the ice cream parlor in the show, in the Fortnite Mega Mall. Today, portals (that look like the ones leading to the Upside Down in the show) were also added to the Mega Mall.

Here’s what it looks like when you enter the Portals… pic.twitter.com/PZskPcXq9u

— FortniteMaster | Stats, Guides, Esports, News (@FNMasterCom) July 3, 2019

These portals don’t actually transport you to the Upside Down, but rather to a separate shop in the Mega Mall.

Based on Fortnite’s past collaborations — the game did an in-game promo with Avengers: Endgame, Avengers: Infinity War and John Wick 3, to name a few — we can expect to see plenty more Stranger Things content on The Island starting tomorrow.

Fortnite has a growing revenue opportunity from these types of native advertising/marketing promotions. The Verge cites analyst firm SuperAnalytics in saying that Epic earned $2.4 billion in 2018, estimating the revenue earned from in-game purchases and BattlePass subscriptions. There was no mention of advertising revenue, however, which seems to be a growing segment for the company.

And let’s not forget, Netflix considers Fortnite to be bigger competition than HBO or Hulu. So it’s no surprise then, maybe, that Netflix is heading on over to The Island to promote one of its most popular original series this July 4 holiday.

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Netflix’s ‘Stranger Things’ comes to Roblox ahead of its July 4 premiere

Posted by | Gaming, Media, Netflix, Roblox | No Comments

Netflix is bringing its hit TV show Stranger Things to Roblox. On Monday, Roblox announced the launch of limited-time, Stranger Things-themed items that will be made available to its more than 90 million players, who can earn them by solving daily riddles and puzzles. Other free, limited-time items like a “Scoops Ahoy” hat and Demogorgon mask will also be offered as virtual items for players’ Roblox avatars.

The first of the two themed items are live now and will be free to download through July 12. Four more items can be unlocked by solving daily riddles and puzzles, with a new clue arriving each day ahead of the July 4 premiere of Stranger Things Season 3.

Roblox will also share clues across its social media accounts on FacebookTwitter and Instagram, it says.

What’s interesting about the Roblox integration is that it may reach children younger than those ages 14 and up — the ages that the series itself is rated for (TV-14). (Likely, some braver tweens are already familiar with the show and are watching alongside mom or dad… or at least with their approval.)

However, the Roblox partnership is only one of several gaming-focused initiatives Netflix has planned to market some of its most anticipated programming, including both Stranger Things and other titles.

To unlock Eleven’s Mall Outfit from @Stranger_Things, you’ll need to learn the score. Check our Facebook and Instagram pages for more clues and solve today’s puzzle before July 18th! https://t.co/y78FWxfQUn pic.twitter.com/DYSqhTPoH3

— Roblox (@Roblox) July 2, 2019

At this year’s E3, Netflix detailed a series of gaming initiatives, including integrations with partners like Ubisoft, Behavior Interactive and even Fortnite, in addition to Roblox. Already, some Fortnite players had found the “Scoops Ahoy” Easter egg back when Season 9 launched, Netflix said.

Plus, the company is preparing not one but two new Stranger Things-themed games. The first, called Stranger Things 3: The Game, will launch across platforms including Nintendo Switch, Xbox One, PlayStation 4, PC, Mac, Android and iOS on the same day the third season premieres. Like its predecessor, also by developer BonusXP, the game is meant to be a companion to the current season and features 16-bit action for a nostalgic feel.

Next year, Netflix is planning another new Stranger Things title, with a mobile game for iOS and Android. This one is a location-based RPG/puzzler where players explore The Upside Down hidden all around them, while working with other players to “overcome its emerging evils.”

Netflix is also preparing to launch on Nintendo Switch, Xbox One, PlayStation 4, PC and Mac a turn-based tactics game adapted from the Netflix Original series The Dark Crystal: Age of Resistance.

A wave of digital marketing isn’t entirely new for the streaming service.

In the past, it toyed with mobile experiences to advertise its shows — like the standalone Orange is the New Black app it launched back in 2014, or the “FakeBlock” app introduced to advertise the new season of Arrested Development.

The company also toyed around with a cross between games and TV with the 2018 launch of Minecraft: Story Mode, which some could consider a form of gaming. Netflix, however, did not. It even claimed at the time that the company did not have any plans “to get into gaming.”

Well, that’s no longer true.

While many of the integrations and games themselves are built by partnered developers, Netflix is clearly involved. And unlike the throwaway apps from years prior, these are more series efforts on Netflix’s part — not just promotional vehicles for its shows.

The marketing doesn’t stop at digital games either.

Netflix’s Stranger Things is more than just a show, it’s a whole business unto itself. It’s Baskin-Robbins ice cream flavors, and Target exclusives like a Stranger Things bike, toys and apparel. It’s posters, games and all kinds of other merch, too. And that’s just one show. An analyst previously said Netflix’s merch biz could be a billion-dollar addition to the company’s revenue.

Beyond gaming and other stuff to buy, the Stranger Things empire extends to brand deals with Coke, Levi’s, H&M, Nike, Eggo, Schwinn, Trivial Pursuit, Burger King and more. 

The Roblox and Fortnite integrations are live now. The Season 3-themed game arrives July 4.

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Northzone’s Paul Murphy goes deep on the next era of gaming

Posted by | Amazon, Angry Birds, Candy Crush, Electronic Arts, esports, Gaming, Google, King, league of legends, Media, mobile gaming, Netflix, Nintendo Switch, Paul Murphy, Rovio, Sports, stadia, Startups, Steam, supercell, Talent, TC, Tencent, unity-technologies, Venture Capital, Virtual reality | No Comments

As the gaming market continues to boom, billions of dollars are being invested in new games and new streaming platforms vying to own a piece of the action. Most of the value is accruing to the large incumbents in a space, however, and the entrance of Google and other big tech companies makes it difficult to identify where there are compelling opportunities for entrepreneurs to build new empires.

TechCrunch media analyst Eric Peckham recently sat down with Paul Murphy, Partner at European venture firm Northzone, to discuss Paul’s view of the market and where he is focusing his dollars. Below is the transcript of the conversation (edited for length and clarity):


Eric Peckham: You co-founded the hit mobile game Dots before moving to London and joining Northzone last year. Are you still bullish on investment opportunities in mobile gaming or do you think the market has changed?

Paul Murphy: I’m bullish on mobile gaming–the market is bigger than it has ever been. There’s a whole generation of people that have been trained to play games on mobile phones. So those are things that are very positive.

The challenge is you don’t really have a rising tide moment anymore. The winners have won. And so it’s very, very difficult for someone to enter with new content and build a business that’s as big as Supercell or King, regardless of how good their content is. So while the prize for winning in mobile gaming content big, the likelihood is smaller.

Where I’m spending most of my time is not on content, it’s on components within mobile gaming. We’re looking at infrastructure: different platforms that enable mobile gaming, like Bunch which we invested in.

Their product allows you to do live video and audio on top of mobile games. So we don’t have to take any content risk. We’re betting that this great product will fit into a large inventory ecosystem.

Peckham: New mobile game studios that are launching all seem to fall under the sphere of influence of these bigger companies. They get a strategic investment from Supercell or another company. To your point, it’s tough for a small startup to compete entirely on its own.

Murphy: It’s possible in mobile gaming still but it’s really, really hard now. At the same time, what you’ve seen is the odds of winning are lower. It is hard to reach the same scale when it costs you $5.00 to acquire a user today, whereas when Candy Crush launched, it was $0.05 per user. So it’s almost impossible to achieve King-like scale today.

Therefore, you’re looking at similar content risk with reduced upside, which makes that equation less attractive for venture capital. But it might be perfectly fine for an established company because they don’t need to do the marketing, they have the audience already.

The big gaming companies all struggle with the challenge of how to create the next hit IP. They have this machine that can bring any great game to market efficiently, with a large audience they can cross promote from and capital they can invest to build a big brand quickly. For them, the biggest challenge is getting the best content.

So it’s natural to me that the pendulum has swung towards strategic investors in mobile gaming content. Epic has a fund that they set up with Improbable, Supercell is making direct investments, Tencent has been making investments for years. Even from a content perspective, you’re probably going to see Apple, Google, and Amazon making more content investments in mobile gaming.

Image via Getty Images / aurielaki

Peckham: Does this same market dynamic apply to PC games and console games? Do you see a certain area within gaming where there’s still opportunity for independent startups to create the game itself and find success at a venture scale?

Murphy: The reason we made our investment in Klang Games, which is building an MMO called Seed that people will primarily play through PC, is that while there is content risk–you’re never going to get rid of the possibility that the IP doesn’t fly–if it works, it will be massive…an Earth-shattering level of success. If their vision comes to life, it will be very, very big.

So that one has all the risks that you’d have in any other game studio but the upside is exponentially larger, so the bet makes sense to us. And it so happens that it’s going to be on PC first, where there’s certainly a lot of competition but it’s not as saturated and the monetization methods are healthier than in mobile gaming. In PC, you don’t have to do free-to-play tactics that interfere with the gameplay.

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Carmen Sandiego returns to Google Earth with a new caper

Posted by | fiction, Gaming, Google, Google-Earth, Houghton Mifflin Harcourt, Netflix, russia, TC | No Comments

Google Earth first made use of its rich global 3D visualization as a backdrop for a Carmen Sandiego tie-in back in March, but today there’s a new adventure to explore. After solving The Crown Jewels Caper, amateur home gumshoes are now tasked with finding out the secrets of The Keys to the Kremlin Caper, which kicks off in Russia, as you might’ve guessed from the name.

Google makes use of the Netflix re-imagining of the classic globetrotting Carmen Sandiego character, which debuted in a 1985 computer game released by Broderbund Software. The Google Earth version includes pixelated graphics and gameplay inspired by the original series, with the modern look that’s used in the Netflix show by educational publisher Houghton Mifflin Harcourt.

The game can be played on Android, iOS or desktop (via Chrome) and has a lot of the same charm and appeal of the original series, with similar educational value in terms of highlighting some key cultural and geographic details along the way as you investigate the case.

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What do subscription services and streaming mean for the future of gaming?

Posted by | Apple, e3 2019, events, Gadgets, Gaming, Google, Hulu, Media, Microsoft, Netflix, Nintendo, Sony, Spotify, stadia, Streaming Media, ubisoft, Uplay, xbox | No Comments

The future of gaming is streaming. If that wasn’t painfully obvious to you a week ago, it certainly ought to be now. Google got ahead of E3 late last week by finally shedding light on Stadia, a streaming service that promises a hardware agnostic gaming future.

It’s still very early days, of course. We got a demo of the platform right around the time of its original announcement. But it was a controlled one — about all we can hope for at the moment. There are still plenty of moving parts to contend with here, including, perhaps most consequentially, broadband caps.

But this much is certainly clear: Google’s not the only company committed to the idea of remote game streaming. Microsoft didn’t devote a lot of time to Project xCloud on stage the other day — on fact, the pass with which the company blew threw that announcement was almost news in and of itself.

It did, however, promise an October arrival for the service — beating out Stadia by a full month. The other big piece of the announcement was the ability for Xbox One owners to use their console as a streaming source for their own remote game play. Though how that works and what, precisely, the advantage remains to be seen. What is clear, however, is that Microsoft is hanging its hat on the Xbox as a point of distinction from Google’s offering.

It’s clear too, of course, that Microsoft is still invested in console hardware as a key driver of its gaming future. Just after rushing through all of that Project xCloud noise, it took the wraps off of Project Scarlett, its next-gen console. We know it will feature 8K content, some crazy fast frame rates and a new Halo title. Oh, and there’s an optical drive, too, because Microsoft’s not quite ready to give up on physical media just yet.

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Netflix tests an Instagram Stories-like feed called ‘Extras’ in its app

Posted by | Apps, Media, Mobile, Netflix, Social | No Comments

Netflix is testing a new way to help users find something to watch and stay connected with favorite shows with the introduction of an “Extras” tab in its mobile app. The tab, spotted first by Variety, is only a test at this time and is not showing to all users.

If you are in the test group, you’ll see a new button dubbed “Extras” at the bottom of the screen, between Search and Downloads.

On Android, this is currently the “Coming Soon” section; iOS doesn’t offer this section.

However, instead of only teaser trailers as before in “Coming Soon,” you’ll now find both photos and videos from Netflix shows — including, in some cases, shows you already watch, the report notes.

The videos automatically play silently unless you tap the sound button, it appears. You also move through the feed horizontally. That’s a noticeable change from the “Coming Soon” section’s News Feed-like vertical scroll, and one that feels more like Instagram Stories.

And while you could previously tap “Remind Me” to add shows to your list in the “Coming Soon” section, the “Extras” section has tweaked this to display “Remind Me” on shows you currently watch and “My List” on those you want to add.

A sizable sharing button is also included, allowing you to pass along recommendations to friends through other apps.

Netflix has taken ideas from popular social platforms before, as it did when it launched its own Stories-like feature for previews. It has also leveraged social platforms for sharing recommendations — like when it added Instagram Story integrations. This feature combines both elements, in a way, so could prove popular.

The test is running on both iOS and Android, we understand.

The company confirmed the test with us in a statement:

We are testing a feed of video extras in our mobile app to help fans connect more deeply with the titles they love and discover new ones to watch. These tests typically vary in length of time and by region, and may not become permanent.

Image credit: Janko Roettgers / Variety

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With iOS 13, Apple delivers new features to court users in India

Posted by | alibaba, Apple, apple news, Apple Pay, Apps, Asia, india, iPhone, language, Languages of India, Mobile, Netflix, smartphone, writing | No Comments

Apple has finally listened to its small, but slowly growing user base in India. The iPhone-maker today announced a range of features in iOS 13 that are designed to appease users in the world’s second largest smartphone market.

First up, the company says its Siri voice assistant now offers all new and “more natural” Indian English male and female voices. It has also introduced a bilingual keyboard, featuring support for Hindi and English languages. The keyboard offers typing predictions in Devanagari Hindi that can suggest the next word as a user types and it learns from their typing over time.

Additionally, the keyboard in iOS 13 supports all of 22 Indian languages, with the inclusion of 15 new Indian language keyboards: Assamese, Bodo, Dogri, Kashmiri (Devanagari, Arabic), Konkani (Devanagari), Manipuri (Bangla, Meetei Mayek), Maithili, Nepali, Sanskrit, Santali (Devanagari, Ol Chiki), and Sindhi (Devanagari, Arabic).

The addition of these features comes as Apple cautiously grows more serious about India, where it holds about just 1% of the smartphone market share, according to research firm Counterpoint. Even as smartphone shipment is declining in much of the world, India has emerged as the fastest growing market for handsets in recent years. According to Counterpoint, more than 145 million smartphones shipped in India last year, up 10% year-over-year.

But users in India have long complained about Apple services not being fully optimized for local conditions. Siri, for instance, has so far offered limited functionalities in India, and many Apple services such as Apple Pay and Apple News are yet to launch in the nation.

The upcoming version of iOS, which will ship to a range of iPhone handsets later this year, also includes four new system fonts in Indian languages: Gurmukhi, Kannada, Odia, and Gujarati. These will “help deliver greater clarity and ease when reading in apps like Safari, typing in Messages and Mail, or swiping through Contacts,” the company said in a statement.

Additionally, there are 30 new document fonts for Indian languages Hindi, Marathi, Nepali, Sanskrit, Bengali, Assamese, Tamil, Telugu, Gujarati, Kannada, Gurmukhi, Malayalam, Odia, and Urdu.

Apple says iOS 13 will also enable improved video downloading option for patchy networks. It says users in India can now set an optimized time of the day in video streaming apps such as Hotstar and Netflix for downloading videos. Consumption of video apps is increasingly skyrocketing in India. Just last week, Alibaba said it was investing $100 million in its short video app called Vmate in the nation.

In recent months, Apple has also improved Apple Maps in India. Earlier this year, Apple Maps added support for turn-by-turn navigation, and enabled users to book a cab — from Ola or Uber — directly from within the maps app. The company has also been aggressively hiring people to expand its maps and other software teams in  the country, according to job postings on the its site.

Improvements to software aside, Apple has also been working to reduce the cost of iPhones in India, the single major factor for their poor sales in the country. Two years ago, Apple started to assemble the iPhone 7 handset in India. It plans to ramp up its local production in the coming weeks, a person familiar with the matter told TechCrunch.

As part of local government’s ‘Make in India’ program, phone vendors that assemble phones in the country are offered tax and other benefits. Ravi Shankar Prasad, an Indian minister who oversees law and justice, telecom, and electronics and IT departments, said at a press conference earlier today (local time) that Bharatiya Janata Party, the ruling party which was reelected last month, will work on expanding Make in India program as one of its top priorities.

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Hotstar, Disney’s Indian streaming service, sets new global record for live viewership

Posted by | 21st century fox, Amazon, Asia, cricket, Disney, Entertainment, Facebook, india, Media, Mobile, Netflix, Sports, streaming service | No Comments

Indian video streaming giant Hotstar, owned by Disney, today set a new global benchmark for the number of people an OTT service can draw to a live event.

Some 18.6 million users simultaneously tuned into Hotstar’s website and app to watch the deciding game of the 12th edition of the Indian Premier League (IPL) cricket tournament. The streaming giant, which competes with Netflix and Amazon in India, broke its own “global best” 10.3 million concurrent views milestone that it set last year.

Update at 11:30 p.m. Pacific on May 13: In a statement, Hotstar confirmed that 18.6 million users simultaneously watched the game on its platform over the weekend. “The achievements of this season once again bear witness to Hotstar being the most preferred sports destination for the country. With technology as our backbone and our all-round expertise in driving scale, we are confident we will continue to break global records and set new benchmarks with each passing year,” said Varun Narang, chief product officer of Hotstar.

Hotstar topped the 10 million concurrent viewership mark a number of times during this year’s 51-day IPL season. More than 12.7 million viewers huddled to watch an earlier game in the tournament (between Royal Challengers Bangalore and Mumbai Indians), a spokesperson for the four-year-old service said. Hotstar said the cricket series had over 300 million overall viewership, creating a new record for the streamer. (Last year’s IPL clocked a 202 million overall viewership.)

Fans of Mumbai Indians celebrate their team’s victory against Chennai Super Kings in IPL cricket tournament in India

These figures coming out of India, the fastest-growing internet market, are astounding, to say the least. In comparison, a 2012 live stream of skydiver Felix Baumgartner jumping from near-space to the Earth’s surface remains the most concurrently viewed video on YouTube. It amassed about 8 million concurrent viewers. The live viewership of the royal wedding between Prince Harry and Meghan Markle was also a blip in comparison.

As Netflix and Amazon scramble to find the right content strategy to lure Indians, Hotstar and its local parent firm Star India have aggressively focused on securing broadcast and streaming rights to various cricket series. Cricket is almost followed like a religion in India.

In 2017, Star India, then owned by 21st Century Fox, secured the rights to broadcast and stream the IPL cricket tournament for five years for a sum of roughly $2.5 billion. Facebook also participated in the bidding, offering north of $600 million for streaming. (Star India was part of 21st Century Fox’s business that Disney acquired for $71.3 billion earlier this year.)

That bet has largely paid off. Hotstar said last month that its service has amassed 300 million monthly active users, up from 150 million it reported last year. In comparison, both Netflix and Amazon Prime Video have less than 30 million subscribers in India, according to industry estimates.

In the last two years, Hotstar has expanded to three international markets — the U.S., Canada and, most recently, the U.K. — to chase new audiences. The streaming service is hoping to attract Indians living overseas and anyone else who is interested in Bollywood movies and cricket, Ipsita Dasgupta, president of Hotstar’s international operations, told TechCrunch in an interview. The streaming service plans to enter more nations with high density of Indians in the next few quarters, Dasgupta said.

That’s not to say that Hotstar has a clear path ahead. According to several estimates, the streaming service typically sees a sharp decline in its user base after the conclusion of an IPL season. Despite the massive engagement it generates, it remains operationally unprofitable, people familiar with Hotstar’s finances said.

The ad-supported streaming service offers about 80 percent of its content catalog — which includes titles produced by Star India — for no cost to users. It also syndicates shows and movies from international partners such as HBO, ABC and Showtime — though these titles are available only to paying subscribers. One of the most watched international shows on the platform, “Game of Thrones,” will be ending soon, too.

The upcoming World Cup cricket tournament, which Hotstar will stream in India, should help it avoid the major headache for some time. In the meantime, the service is aggressively expanding its slate of original shows in the nation. One of the shows is a remake of BBC/NBC’s popular “The Office.”

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Where top VCs are investing in media, entertainment & gaming

Posted by | Apple, BetaWorks, charles hudson, Electronic Arts, Entertainment, epic games, Eric Hippeau, esports, Facebook, fortnite, founders fund, funding, Fundings & Exits, Gaming, Google, GV, HQ Trivia, instagram, interactive media, lerer hippeau ventures, lightspeed venture partners, Luminary Media, matt hartman, Media, mg siegler, Netflix, new media, precursor ventures, Roblox, scooter braun, sequoia capital, Sports, Spotify, starbucks, Startups, sweet capital, TC, Twitch, Venture Capital, Video, Virtual reality | No Comments

Most of the strategy discussions and news coverage in the media and entertainment industry is concerned with the unfolding corporate mega-mergers and the political implications of social media platforms.

These are important conversations, but they’re largely a story of twentieth-century media (and broader society) finally responding to the dominance Web 2.0 companies have achieved.

To entrepreneurs and VCs, the more pressing focus is on what the next generation of companies to transform entertainment will look like. Like other sectors, the underlying force is advances in artificial intelligence and computing power.

In this context, that results in a merging of gaming and linear storytelling into new interactive media. To highlight the opportunities here, I asked nine top VCs to share where they are putting their money.

Here are the media investment theses of: Cyan Banister (Founders Fund), Alex Taussig (Lightspeed), Matt Hartman (betaworks), Stephanie Zhan (Sequoia), Jordan Fudge (Sinai), Christian Dorffer (Sweet Capital), Charles Hudson (Precursor), MG Siegler (GV), and Eric Hippeau (Lerer Hippeau).

Cyan Banister, Partner at Founders Fund

In 2018 I was obsessed with the idea of how you can bring AI and entertainment together. Having made early investments in Brud, A.I. Foundation, Artie and Fable, it became clear that the missing piece behind most AR experiences was a lack of memory.

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