Important Note
Tech Narratives was a subscription website, which offered expert commentary on the day's top tech news from Jan Dawson, along with various other features, for $10/month. As of Monday October 16, 2017, it will no longer be updated. An archive of past content will remain available for the time being. I've written more about this change in the post immediately below, and also here.
Google Will Separate its Shopping Unit from Search to Satisfy EU Regulators (Sep 26, 2017)
After its initial proposal to address the European Commission’s concerns over its Shopping search feature apparently failed to pass muster, it appears Google is now offering to separate its Shopping search business from its core search business in the EU, and force it to bid for ten slots above the regular search results alongside other comparison shopping services. The reporting here from Bloomberg makes it sound like Google might still get more formal approval of its proposal, despite the EU Competition Commissioner’s remarks to Bloomberg last week which suggested that it would have to play things by ear. This solution will certainly seem less fishy than the first proposal, which I said had significant issues, but it’s still not clear whether it will meet the approval of either the EU or Google’s competitors. Certainly, Google is now going to have to bid for slots it previously received for free, which will dramatically change the economics of the Shopping search in the EU. But as long as Google has exclusive rights to its past data about the results from those links in the past, it will continue to have something of an unfair advantage over competitors in knowing what to bid for them in future.
via Bloomberg
FDA Selects Nine Companies to Test Fast-Track Approval for Health Technology (Sep 26, 2017)
The US Food and Drug Administration has pushed forward with plans to test a fast-track process for approving technological approaches to healthcare problems, and has selected nine companies to be part of its pilot program, including Apple, Fitbit, Samsung, and Alphabet’s Verily life sciences unit. Apple has long said that the need to get FDA approval for health-related products would likely dissuade it from entering that market directly, though it’s managed to serve that market indirectly through partners taking advantage of its ResearchKit and other programs. Both Apple and Fitbit have been pursuing health-related applications for their devices, and Samsung launched a virtual doctor service as part of its Galaxy S8 launch earlier this year, so this is clearly a hot area for these consumer tech companies. The FDA deals mostly with products with diagnostic or treatment applications, which is why so much health and wellness tech tends to stop short of those categories and merely provide data and alerts. But the potential for doing more is already clear, and with faster FDA approval we could well see these companies go deeper into this field. It’s still early in this process, and there might still be other downsides including the potential for leaks while approval is being sought, which is likely to give Apple in particular pause, but this is a positive step for both the industry and for end users.
via Bloomberg
Amazon Begins Selling Apple TV Hardware Again (Sep 26, 2017)
Amazon has quietly begun selling Apple TV hardware again, as part of the thawing in relations between the two companies. Apple has already announced that an Amazon video app is coming to the Apple TV shortly, so this is the first half of that two-part move, suggesting that the other shoe should drop soon. As I said a few months back, though some have suggested there was some tit-for-tat in Apple and Amazon’s frosty relations, the reality is that the barriers to playing nicely were all on Amazon’s side – the company could have built an app for the Apple TV as soon as the platform launched an App Store, but chose not to. I assume that was because of the App Store cut, but that’s been a feature on iOS too, and hasn’t stopped Amazon from launching video apps for that platform. Regardless, it’s likely that Apple has made some concessions on the App Store cut, and that that’s finally got Amazon on board as one of the last holdouts from the Apple TV, which should further increase the appeal of that hardware platform for those willing to pay the Apple premium to get their Transparent or Man in the High Castle fix.
via TechCrunch
★ Twitter Tests Expanding Limit to 280 Characters in Most Languages (Sep 26, 2017)
Twitter has just made the surprise announcement that it’s testing expanding the 140-character limit that’s characterized the service from its inception to 280 characters in all languages except Japanese, Chinese, and Korean, which make far more efficient use of characters. Various people have suggested expanding the Twitter limit over time as a way to make the service more useful and less frustrating, but the 140-character limit has been a defining feature, forcing brevity and making streams of tweets very easy to consume. Even just looking at the first few 280-character tweets I’ve seen from Twitter executives has broken up my feed and forced a mental shift in my consumption. There’s something magical about the 140 character limit which makes the vast majority of tweets inherently glanceable in a way a 280 character tweet never will be. I continue to maintain that expanding the character limit and other superficial changes are peripheral to the real changes Twitter needs to make to go more mainstream – those changes instead need to revolve around getting beyond the account-by-account following model. This is a bold step for Twitter (albeit one still in testing) but it feels like it misses the mark in terms of making Twitter more useful. I’d argue that if removing constraints was the focus, Twitter should have found a way to attach longer blocks of text to tweets natively instead – that would have replaced the many screenshots of text people post, which aren’t searchable or readable by accessibility software, without breaking the fundamental model. Personally, I’m not a fan, but more importantly, I’m skeptical this will actually improve the Twitter experience in ways which lead to more usage and most importantly more users, which continues to be one of Twitter’s biggest challenges.
via Twitter
Microsoft Announces Non-Cloud Office 2019 to Release in 2018 (Sep 26, 2017)
Today’s Ignite announcements appear to be far less notable than yesterday’s, but there’s still one biggish one: Microsoft has announced that its non-cloud version of Office will have its next major release next year, and will be called Office 2019 (apparently borrowing from car manufacturers’ tendency to decouple model years from calendar years). Microsoft refers to this version of Office as “perpetual” because it still uses the old perpetual licensing model associated with boxed and downloaded software rather than the subscription model associated with Office 365. The latter is now the main way Microsoft wants to sell Office, but in recognition of the complexity and sluggishness of many corporate IT departments, it has to continue to sell using the old model as well, and this release is really just a way to package up many of the incremental improvements made in Office 365 into a single version for those customers. That highlights some of the challenges of straddling the legacy and cloud worlds in software, and of course of the fact that Microsoft is the only major company now charging for productivity software, while Apple and Google offer their suites for free to individual users.
via Microsoft
Amazon Adds Voice Control to Music Apps, Says Alexa Use Now Bigger Than Mobile (Sep 26, 2017)
Amazon is adding voice control features to its mobile music apps for iOS and Android to give users more ways to control their music even when they’re not using an Echo or other Alexa-enabled device. That’s a logical place to extend Alexa functions given that music playback is a major use for voice speakers, and the symbiosis between the two has already made Amazon Music a much more widely used service over the last couple of years that it would have been otherwise. A recent survey I ran suggested that under 20% of US Prime subscribers use the music feature, but even at 20% that would be millions of users in the US alone, and I would guess many of those are likely Echo users. Adding a voice feature to a third party app still isn’t nearly as convenient as invoking it from an external button or a voice command from the lock screen, but for those committed to Amazon’s ecosystem, this is still a useful value-add. We’re going to see the connection between voice and music become considerably stronger over the next few years, with Apple’s entry into voice speakers through the HomePod as well as Sonos’s announcement next week. A big question is whether voice becomes an important way to drive playback on mobile as well as in the home – voice assistant use on mobile remains fairly low overall and high mostly in specific circumstances like while driving, but that could change as assistants get more sophisticated in understanding commands relating to music, something Apple’s clearly been working on lately.
via WSJ
Facebook Signs Deal with NFL for Highlight Videos (Sep 26, 2017)
Given that the live TV rights for major US sports are pretty much all sewn up for years to come, the major online platforms have been relegated to pursuing other rights, including second-tier sports (and e-sports), sports rights outside the US, and meta content including highlights and sports-centric talk shows. The latest example of that comes from Facebook, which has paid the NFL for the right to show highlights to its users immediately after games end, as well as doing a deal for NFL-created shows for its new Watch tab for video. The highlights deal kicks in immediately and the overall contract is for two years. This feels like one of the more promising deals Facebook has signed – I’m really not convinced anyone wants to watch long-form sports (like pretty much all US sports with their massive ad loads) through a social network, but highlights seem much better suited to both mobile and social contexts, because they’re very shareable and digestible in small chunks. I already regularly see highlights from various sports in my Facebook feed, but they’re almost all videos from within articles hosted off Facebook – this deal would bring the content into the platform and therefore enable monetization through advertising. As I said yesterday in the context of YouTube’s enhancements, Facebook’s video ad tools are still very rudimentary in comparison, but at least it now has ways to show ads in videos. The challenge with highlights is going to be that they’re so short and so widely available, I wonder whether anyone will want to stick around beyond the mid-roll ad break.
via Recode
NBCU To Start Automating TV Ad Buys to Allow Brands to Better Target Ads (Sep 26, 2017)
NBC Universal is going to start allowing big advertisers to automate the placement of some of their ads through the use of an API. What this means in practice is that brands will be able to use data they have on which shows their target customers are likely to watch to select exactly when their ads will play on the various NBCU channel. Despite the obvious similarity to automated ad buying online, this is going to be far from a free-for-all: it’s starting with one partner (Target) and this will presumably be limited to big, established brands, and will certainly involve pre-approval of all the actual creative to be shown to viewers. But it’s yet another front in the ongoing war between online ad platforms and the TV companies, with the latter constantly aping the former’s techniques while claiming to be superior in other ways. The reality is that every big brand is going to advertise in both places, and Facebook is now actively pursuing a strategy of trying to tie those two channels together at a measurement level, which feels more realistic than the TV companies’ denial that the online platforms offer anything of value to advertisers.
via Business Insider
Daily Podcast Episode 63 – September 25, 2017 (Sep 25, 2017)
The daily podcast episode for September 25 is up now on SoundCloud and should be syncing shortly to iTunes, Overcast, and other podcast apps. As usual, the podcast spends about one minute on each of the items covered on the site today, and also points to a few other items in the news today which I didn’t cover but which are nonetheless interesting. You can find today’s episode on SoundCloud and all episodes on iTunes, Overcast, and so on. The additional items covered are below:
China Effectively Blocks WhatsApp (Sep 25, 2017)
It appears that the Chinese government has effectively blocked WhatsApp entirely in the country through some fairly sophisticated and subtle means, making it more or less unusable for the population, an escalation over earlier partial censorship of certain content types. This is obviously a big blow to Facebook – we don’t know how many monthly active users WhatsApp has in China, and it’s clearly not as dominant there as in certain other markets given the popularity of the local messaging services, but it’s still an important market for WhatsApp given its popularity in Asia in general, and WhatsApp has also been about the only property Facebook has that’s operated in China even as the rest of the company has been shut out. The context here is the broader crackdown by the government against western tech companies and especially those that foster open communication at a time when the government is clamping down on dissent.
via New York Times
★ Apple Switches Search Back-End for Safari and Siri to Google from Bing (Sep 25, 2017)
Apple has quietly switched the search back end for its Siri voice assistant and what used to be called Spotlight search to Google, after relying on Bing for several years. Bing will continue to provide the image search results in Siri, but is otherwise being replaced by Google. That’s a fascinating turn of events after several years of Apple removing Google from various elements of its built-in systems, from switching to its own maps to elimination the YouTube app to offering a variety of alternative default search providers in Safari, to this use of Bing behind the scenes. Although there’s obviously been some speculation that money was a factor here, and it may well have been, I suspect this ultimately comes down to wanting to provide the best possible experience in these various settings, and that means using Google. That’s ultimately the same reason that Apple hasn’t switched away from Google as the default search engine within Safari in Western markets – Google is the gold standard, and everything else still comes up short. I do wonder if this is part of a quiet renewal of the longstanding relationship between the two companies, which always prompts speculation about Apple replacing Google as the default. That certainly seems less likely now, as Apple in its brief public statement on this news has emphasized the need for consistency across experiences within iOS and macOS, suggesting that Google is here to stay as the default search option in Safari. That’s a big win for Google and a big loss for Microsoft, for which Apple’s partnership was a rare bright spot on mobile, while it continues to take decent share on the desktop by virtue of Windows’ dominance there.
via TechCrunch
Microsoft Makes Set of Announcements at Ignite Partner Event (Sep 25, 2017)
Microsoft kicked off its Ignite partner event in Florida today, and made a set of announcements during the opening keynote. The Microsoft blog post linked below gives a quick run-down of the big ones, which included new versions of the Microsoft 365 as-a-service Windows-Office bundle for education and “first-line workers” (roughly, workers who don’t sit behind desks but still use computers), new Azure partnerships with hardware vendors to enable hybrid cloud deployments, enhancements to Azure’s machine learning capabilities, and a push around quantum computing. Microsoft CEO Satya Nadella also launched a new book about his turnaround of Microsoft, and this was a theme throughout the day’s presentations. Lastly, it appears Microsoft is killing off Skype for Business in favor of its new Slack-like Teams product, which represents yet another in a string of changes to Microsoft’s enterprise communication software over the last few years – I’m hoping this strategy finally sticks. There’s nothing that significant here for the consumer technology market I spend most of my time covering, but the announcements are indicative of the big focus areas Microsoft has at the moment: cloud, AI and machine learning (as much as enablers of third party developers as within Microsoft’s own products), and openness and partnering.
via Microsoft
FX Networks Broadens FX+ Add-On Service, Talks Pulling Content from Netflix (Sep 25, 2017)
FX, a division of 21st Century Fox, today announced a broadening of its FX+ add-on service for pay TV operators to Cox Communications’ pay TV subscribers, in addition to its existing partnership with Comcast. But in some ways more interesting were comments its head made about the network’s future approach to licensing content. In essence, FX has had to pay a lot of money to undo past deals which gave various other entities rights to its content so that it could put that content back on its own streaming service, and he says he doesn’t plan to make that mistake again. Netflix was singled out in particular as a streaming service FX had licensed content to in the past but wouldn’t again, and Netflix’s shares were down around 5% today seemingly as a result. All of this of course validates Netflix’s decision a number of years ago to invest much more heavily in its own original content, which has three major drivers of which hedging against such decisions was one of the big ones. Netflix needed to control its own destiny when it came to content, and there was always the risk that it would lose its licensing deals as it increased in popularity and power. I think the 5% drop based on comments from one content owner is likely overblown – there certainly wasn’t such a strong reaction to Disney’s recent pullback, at least not right away – and in general Netflix is in pretty good shape content-wise and retains some of FX’s most popular shows for now. FX, meanwhile is pursuing a very limited strategy with its add-on network, limiting it to pay TV subscribers rather than going after cord cutters, either independently or through Amazon’s powerful Channels product, which has driven lots of subscribers for similar packages. That feels like a mistake, and something FX should rectify sooner rather than later if it wants to reach a considerably larger potential base of customers.
via Bloomberg
YouTube Announces More Sophisticated Targeting, Customization for Ads (Sep 25, 2017)
Google has announced several new tools for advertisers using its platform to reach users with video ads, and they highlight just how sophisticated the YouTube ad platform is becoming, at a time when Facebook is still struggling with basic formats and helping creators tweak their video formats to work with its ad limitations. There are four parts to the YouTube announcement: custom affinity audiences, which allow advertisers to reach users based on profile-based interests including recent Google searches; customizing video ads by context on the fly using automation; stringing together multiple ads to tell a story or react to user responses; better online-to-offline attribution. To my mind, the custom video ads are the most interesting thing here – they allow advertisers to upload a set of assets and have the system automatically mix and match them to create ads that feel like they’re customized based on the video the user is watching. As this TechCrunch article points out, that’s likely to make the videos more memorable, but it may also cross the “creepy” line for some viewers, and that’s the risk all highly-targeted advertising takes. Various elements of what Google is announcing take advantage of its increasingly strong AI and machine learning techniques as well as the breadth of its tracking of users (for better or worse) across the various properties it owns, and the latter may in future be hampered by increasing limits on this kind of targeting which will come into effect in Europe soon.
via Google
Facebook Becomes Increasingly Embroiled in Political Quagmire (Sep 25, 2017)
There were at least three separate articles today highlighting the way in which Facebook is increasingly embroiled in a messy set of political stories. The Washington Post reported that President Obama was instrumental late last year in convincing CEO Mark Zuckerberg to take the social network’s role in the election more seriously, and later reported that the ads which have been in the news for the last few weeks were sophisticated attempts to sow division over issues like the Black Lives Matter movement. BuzzFeed, meanwhile, reported that Steve Bannon at one point tried to plant a mole at Facebook, in an attempt to gain insight into its hiring process. Try as it might to extricate itself from this political quagmire, it seems there is little Facebook can do at the moment to escape it, as it keeps getting sucked deeper in. Clearly no-one at Facebook was involved in the Bannon effort, but it highlights the tensions between the political faction currently running the US government and Silicon Valley, while the other stories suggest Facebook was used unwittingly as a tool by foreign operatives looking to influence the election. That could be either exonerating or damning, depending on how you look at it – on the one hand, it suggests Zuckerberg’s original blasé attitude towards political influence on Facebook was genuine, but on the other it suggests no-one at Facebook took it seriously enough while the campaign was still ongoing to discover things that have only come to light more recently. I hope that as part of the changes announced last week, Facebook is now attempting to ferret out this type of activity more methodically, but as with so many things Facebook-related, it’s impossible to know for sure because of the general opaqueness of the way Facebook operates.
via The Washington Post (2), BuzzFeed
Fitbit Ionic Smartwatch Goes on Sale October 1st (Sep 25, 2017)
We finally have a firm date for Fitbit’s Ionic smartwatch to go on sale, which is October 1st – this coming Sunday, an odd day for a product launch, but consistent with the previous guidance that it would be available in the month of October, while giving Fitbit a full first quarter of sales to report in the New Year. The formal reviews of the Ionic were released before the device had an app store, and so were incomplete, but there really haven’t been any more since. Indeed, the SDK for developers goes live tomorrow, just a few days before the launch of the device, meaning that the app store won’t be a feature at launch. It’s going to be available in all of Fitbit’s regional markets, and in the US will be sold through a mishmash of channels, including Amazon, Best Buy, department stores, sports and outdoor retailers, and Verizon (though apparently not other carriers). As I said when the first announcement of the device was made, I don’t expect this to be a big seller in the overall context of the smartwatch market, and it’ll sell mostly to existing Fitbit owners and owners of Android smartphones, contributing a little to Fitbit’s overall sales and boosting its ASP nicely.
via Fitbit
Twitter Sells Enough Ads to Launch All Planned Live TV Shows (Sep 25, 2017)
It certainly wasn’t clear at the time Twitter made its big blitz of announcements around its live TV plans that some of the shows weren’t guaranteed to air if they didn’t get sufficient ad backing, but now that they have that backing, Twitter is apparently trumpeting that fact. Since many of the shows Twitter is hosting are existing properties which will come with ads from the original sources, Twitter likely didn’t have to sell that many ad slots itself in many cases. There certainly are some unique-to-Twitter shows, so it’s impressive that it’s sold enough ads on those too, but in many cases I’m guessing that spend is experimental – no-one really knows what kind of audiences most of these shows will attract, and the level of spending involved is likely small enough to fit into niche budgets (as Snapchat long did). The big question is whether, following the first few months of this experiment, those advertisers want to re-up and commit to additional shows and seasons. That will depend largely on a combination of viewership and engagement with the ads viewers see. We don’t have many figures for individual Twitter shows to go by, but we do know that just 55 million or 17% of monthly active users spent any time watching any live video on Twitter in Q2 of this year, so Twitter and its advertisers are clearly hoping that that translates into more committed audiences for specific shows in order to justify continued investment.
via Recode
Kids’ Anonymous Feedback App TBH Hits #1 on App Store (Sep 25, 2017)
The hottest new app on the iOS App Store isn’t an augmented reality game enabled by iOS 11, but a new social app aimed at older school kids called TBH (styled tbh). What sets the app apart from pretty much every other social app aimed at kids is its limits, which prevent it from being used for bullying or other nastiness and instead focuses it on positive anonymous messages. In a world where pretty much every new platform eventually gets used for bullying and trolling, this one is admirable for its focus on positivity, something that shines through pretty clearly in the reviews on the App Store. At the same time, it clearly taps into every tween and teen’s desire to talk about friends with other friends in quasi-anonymous ways. The full article from TechCrunch which I’ve linked to below is worth a read fro the other details, but if nothing else the app’s success is admirable for its focus on trying to be a force for good in a world where so little else is. But it’s also notable for being yet another example of an app that’s launched on iOS first (with Android supposedly in the works), that’s thrived on limitations, and which has – like Facebook – taken a slow and steady approach to rolling out (I downloaded the app to try it out but it’s only available in certain states and mine isn’t one of them). The next big challenge, of course, is monetization – something that might be tough among the 12-18 crowd this seems firmly aimed at.
via TechCrunch
Twitter is Testing a Native Lite App in the Philippines (Sep 25, 2017)
Twitter launched Twitter Lite as a progressive web app in April with a view to providing a better option for emerging markets users relative to its native app. In writing about that news, I said that Twitter’s PWA was nice validation for Google’s push of these web apps, but that validation takes a bit of a knock from the fact that Twitter is reportedly testing a native app version of Twitter Lite in the Philippines. There’s no guarantee it gets launched broadly, but it would be further evidence that, for all Google’s eagerness to promote web apps alongside (or even instead of) native apps, the latter still dominate usage and the channels major companies still use to make their services available. I also said in that original piece that Twitter could benefit from the same kinds of benefits as Facebook by pursuing a Lite strategy, but although a Twitter product exec said a while back that Lite was driving big growth in India, the company’s Q2 results showed basically no evidence of that growth. One of Twitter’s biggest problems globally continues to be its inability to create a value proposition that appeals to new users, and whereas Facebook’s Lite app accelerated what was already very strong growth, Twitter’s app can’t solve that fundamental issue.
via TechCrunch
SoftBank Said to be Willing to Accept Current Market Price for Sprint in Merger (Sep 25, 2017)
I said in commenting on last week’s Reuters story about Sprint and T-Mobile merging that the one element that didn’t ring true was SoftBank ending up with 40-50% of the combined entity, and Bloomberg is now reporting that majority owner SoftBank is willing to accept something close to its current market price for Sprint, leaving it with closer to 30%, which feels much more in line with what I would have expected. It’s not a great exit for SoftBank, which bought 72% of Sprint for $7.65 a share in July 2013, while shares are trading at $7.83 at the time I’m writing this, having dropped 8% during the day so far, presumably on the back of this news about valuations. However, the stock had traded as low as $2.66 early last year, so SoftBank is at least poised to get about what it paid for Sprint in return for a decent minority share in what could be a much more promising company once the integration goes ahead. Sprint’s valuation, of course, has been bid up significantly over the past year partly off the back of its own improving business but in large part also because a deal with T-Mobile has seemed more likely since last fall’s US presidential election. Its price rose from around six dollars to over nine in the period immediately following that election, so the drop today is likely a reflection of the fact that expectations for a premium are dissipating.
via Bloomberg