Tag Archives: Social

More Details On Why Zynga Laid Off 18% Of Its Workforce And How It’s Shifting To Mobile

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Earlier today, Zynga announced that it was laying off 18 percent of its global workforce. After the news broke, I spoke to a source with knowledge of the company’s decision-making process to get more details about why Zynga made the cuts and what they mean for its future.

What they said won’t be revelatory if you have been following Zynga’s earnings reports or if you read today’s note from CEO Mark Pincus, but they did paint a picture of a company that wants to become leaner and more nimble while it’s also struggling to create more mobile hits.

In some cases, it seems that executives believed that they were “banking” team members. Only a small portion of a given studio was really needed to create a mobile game, but Zynga didn’t want to lose the other team members, so they were kept around on the assumption that the mobile business would grow. Eventually, however, executives decided this was happening in too many locations and was ultimately unsustainable.

My source compared the situation to older gaming companies making the shift to the web. Just as the growth of free-to-play social games has forced giants like EA to downsize, the shift to mobile is forcing the previous wave of social gaming companies to become smaller still.

Not that it’s just a few supposedly oversized studios that are being affected. I’m told that Zynga teams are being shrunk across the board. The company will also be spending less money on partnerships. And, as previously reported, the New York, San Francisco, and Dallas studios are being closed entirely.

Zynga is also trying to follow the lead of mobile gaming companies like Supercell and King.com. Apparently executives were impressed to see massive hits created by small teams and small workforces. The hope is that by restructuring the company, Zynga can replicate the success of some of its startup competitors.

The company has talked in the past about launching fewer games and franchises overall, and I’m told that’s still the plan — to focus on a smaller number of franchises and try to turn each of them into a big brand name.

Vine Gets RickRoll’D With A Three Minute Video

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Vine has over 13 million users now. And with this morning’s launch on Android, chances are that number is climbing rapidly.

But of all the Vines, from all the millions of users, across all of the world, this is the best one. Period.

16-year-old Will Smidlein might have used a technique that seems to have been discovered about a month ago, wherein users can upload videos longer than six seconds to Vine as long as they follow a detailed set of steps and use a jailbroken device.

Apparently Twitter’s API doesn’t check for how long the video is while it’s being uploaded on the server side. Since Smidlein uploaded the file from the camera roll on his jailbroken iPhone, the API let it live as a looping RickRoll hell.



Zynga Confirms That It’s Cutting 520 Employees (18% Of Workforce), Says It Will Save $70M-$80M

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Update: Zynga has confirmed the layoffs via press release, as well as the numbers (520 million layoffs, adding up to 18 percent of the workforce) reported by AllThingsD.

It looks like Zynga is in the midst of laying off one-fifth of its workforce.

At the end of last week, we heard that the company would be laying off 20 percent of its worldwide staff today, and that the include a number of Zynga’s global offices would be affected. A Zynga spokesperson declined to comment, but we’ve seen the first public sign that the layoffs are underway: A Zynga UI designer just tweeted that Zynga LA will be closing, with about 55 employees let go.

This isn’t the first time Zynga has had significant cuts. Last fall, CEO Mark Pincus said the company would be reducing costs and it subsequently laid off 5 percent of its staff. The company has also eliminated some of its less successful titles (and even some unreleased ones), though executives have also said that the number of new game launches should pick up again later this year.

As of its last quarter,Zynga had 2,902 full-time employees. That’s probably slightly off by now, but if the 20 percent number that we’ve been hearing is accurate, then around 580 employees will be affected.

Zynga’s revenue and usage statistics continued to decline in its most recent earnings report, with Pincus describing this as a “transition year” as the company shifts its focus to mobile.

Video To Dominate Mobile Data Traffic In Four Years, Says Ericsson

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If you thought smartphones were ubiquitous now — and in certain places they pretty much are — prepare for a whole lot more people to be coming online on their phones in the next five years. Network kit maker Ericsson has published its latest mobility report, based on traffic measurements of live mobile networks, which projects that global smartphone subscriptions will rise from 1.2 billion in 2012 to 4.5 billion by the end of 2018 — a CAGR of 25 percent.

Ericsson is also expecting the monthly mobile data usage per smartphone to rise from 450MB in 2012 to 1,900MB by 2018. Even larger growth is on the cards for tablets, with monthly data usage forecast to rise from 600MB in 2012 to 3,100MB in 2018 — a CAGR of 30 percent. By 2018, Ericsson also reckons LTE (4G) will cover 60 percent of the world’s population. As for the mobile data driver, it’s video — with video growth underpinned by increasing availability of faster networks as LTE spreads. Larger devices with bigger screens with higher resolutions are also causing users to gobble up more MB, according to Ericsson:

The fastest growing segment in mobile data traffic is video. Increasing usage is driven by continual growth in the amount of available content as well as the better network speeds that come with HSPA and LTE development. Larger device screens and better resolutions will also drive video traffic as they will enable high definition and eventually even ultra high definition video.

Ericsson’s data shows video makes up the largest segment of mobile data traffic today — and is expected to grow by around 60 percent annually until the end of 2018 when it’s forecast to account for about half of total global traffic, dominating mobile content consumption. Good news if you’re Vine, then.

The data also shows music streaming gaining in popularity — with a projected annual growth rate of around 50 percent, although Ericsson notes there is a “high degree of uncertainty” in the audio forecast because it’s “very dependent on how music streaming services develop over the coming years.” So that likely refers to stuff like Apple being rumoured to get into the streaming space, and the knock on effect a Cupertino iRadio could have on other services, should it indeed come to pass as rumoured.

On the social and web front, Ericsson reckons web browsing and social networking will each constitute around 10 percent of the total data traffic volume in 2018 — so achieving some sort of parity, even if social networking still ends up taking up more of mobile users’ time and therefore more mindshare. According to Ericsson’s data, smartphone users are spending the largest portion of their time on social networks: an average of 85 minutes a day in some networks.

Ericsson has also broken out mobile traffic by device type, to give a breakdown of what different devices are being used for right now, which shows how quickly video has established itself on tablets — passing smartphones video volumes already. The latter device type remains the most popular device for social networking, which dovetails with how personal smartphones are vs tablets and laptops which can be shared within groups and families:

Crowdstar Picks Up An Extra $12M To Fuel Its Move Onto Tablets, Mobile

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Crowdstar, the social and mobile gaming company that has built several fashion-focused titles, just picked up another $12 million from existing investors to bring two products to market later this year.

As you might expect, both are mobile and Crowdstar CEO Jeffrey Tseng says the company now has a renewed focus on tablets. Competing companies like Finland’s Supercell have made tablet gaming their bread and butter, with higher engagement and player spending fueling revenue growth. We picked up the new funding through an SEC filing, but Tseng later confirmed it.

“So it’s the same internal investors, but I can’t talk much about the products,” Tseng said. He said that one will be fashion-focused like Top Girl and Social Girl while the other one will be different.

An early player on the Facebook platform, Crowdstar had to migrate onto iOS and Android like the rest of the industry. Zynga is making a similar transition, but as the legacy leader on Facebook, it’s had a tougher time involving job cuts and studio closures.

While it was never anywhere near the size of Zynga, Crowdstar has stayed small through the transition with 70 people overall. Back in 2011, when it was crossing over to iOS, the company’s previous CEO Peter Relan said Crowdstar would have a three-prong strategy involving mobile platforms, Facebook and international reach. But since then, they’ve shifted their entire focus to mobile.

“We’ve completely switched to mobile and the focus will be on tablets,” Tseng said. The new round brings Crowdstar’s overall funding to date to more than $46.5 million. It comes as marketing spending has risen on mobile platforms, bringing the cost of launching a new game into the millions of dollars.

“Platform are getting to the point where the fidelity and expectations have to be higher,” Tseng said.

Facebook Advertises That You Can Turn Off Home “If You Need Some Alone Time”

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Desperate to make its homescreen replacement Home seem less invasive, Facebook is advertising that you can temporarily deactivate it and use your HTC First or other Android phone as normal. The fact that Home replaces your widgets and app folders has been a core complaint. Facebook vows to fix that, but until then it’s reminding people they can leave Home for stock Android or their old launcher.

The post by the Facebook Mobile Page which was also being shown as an ad in some peoples mobile feeds, says “Cover feed on the HTC First keeps your friends close by. But if you need some alone time, simply turn off Home and use your phone as usual. http://bit.ly/htcfirsthome“.  When turned off, the HTC First reverts to stock Android 4.1, and the downloadable version of Home gives way to whatever launcher users had installed before.

Facebook COO Sheryl Sandberg addressed the issue of users’ disappointment with how Home takes over their phone this week at D11 when asked if the product was a success:

“Facebook Home is v1 of what we think is a very large transformation that we think will absolutely happen, which is rebuilding your phone around people.

The way [phones are] organized is still around activities and apps. We think that phones will be reorganized around people, and we think Facebook Home is the first version of that. We consider it v1, very early. We’d love if we could put out a v1 version and get everything right. The feedback we’re getting is very bi-modal. If you look at our stars, we get fives and we get ones. We get almost no threes.

The people who love it, they’re heavy Facebook users. They want that experience. Not only do they love it but the metrics are working very well for us. They’re using Facebook 25% more and they’re doing 10% more more messaging. So this is a win, both in terms of how this will drive our business and for them.

For the people who don’t love it, they don’t like how it takes over their phone. They don’t like how the launcher re-organizes the apps they’ve already launched, but for the most part they actually like the two core features we launched which are Cover Feed and Chat Heads. So what we are doing is getting that feedback. I don’t know how long it will take. I think it will be a long road. but we really believe we’re on a path to making phones more social.”

As Sheryl explained, a big issue with Home was the sacrifice you have to make to use it. Android users gain some features, but have to give up much of the personalization they’ve worked to build into their phone in the form of widgets, folders, and app organization. I believe their omission from Home is related to some of the team that built Home being iPhone users who don’t have these options normally, so they didn’t miss them.

Supporting these customization features could make Home more of a bonus than a trade. When Home launched, Facebook Product Director Adam Moserri told me there were a lot of features he wished had made it into the initial build, including app folders.

Now Facebook is trying to get some of that functionality added through its monthly updates to Home. On May 9th at a small press conference at Facebook headquarters, Moserri unveiled Dock, a tray of a user’s favorite apps that’s persistently visible at the bottom of homescreen app launcher. Facebook plans to let users import their Dock of most frequently used apps from their previous Android launcher into Home.

Many are calling Home a flop already, and maybe it will be, but it’s early to make that judgement now. Facebook has a very long-term view for the software. Mark Zuckerberg’s belief is that we’re destined to share more and more with our friends, so some will want to prioritize them ahead of utility applications in their phones.

Zuckerberg told Wired’s Stephan Levy, “Three years from now, people are going to be sharing eight to ten times as much stuff. We’d better be there, because if we’re not, some other service will be.” That’s the goal of Home. But for Facebook to get to that future, it needs Home to gain traction. It’s hasn’t yet, having only hit one million downloads on May 10th. The active user count is suspected to be much smaller. As Sandberg said, it will be a long road to success…if Facebook’s even going in the right direction.

Big Impact On A Small Budget: Ben’s Friends Wants To Build A Web & Mobile Support Network For Every Rare Disease

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There’s a lot of exciting and head-turning technology out there today, and it’s changing our world in a multitude of ways, some more obvious than others — and at a fairly astounding rate. But many of these services, while making our lives more convenient or connected, aren’t necessarily helping people or having an impact at a more fundamental level. There are, of course, many exceptions, and Ben’s Friends is one of them — another example that for-profit, social enterprises can have a big impact even without venture capital, or big budgets.

For those unfamiliar, today Ben’s Friends is one of the largest platforms and support networks for people with rare diseases. Software developer and startup veteran Ben Munoz conceived the idea in 2006, after suffering from a life-threatening and rare form of stroke (as a result of a condition called “arteriovenous malformation”), which led to several years of intensive treatment, radiotherapy and neurosurgery. Unable to find the information or support he was looking for on the Web, he launched a site to find others who suffered from the same (and similar) conditions.

A community of people quickly formed around AVMSurvivors.org, and, joined by his friends Scott Orn, a partner at VC firm Lighthouse Capital, and Eric D. Kroll, the founders started Ben’s Friends to apply the concept to other diseases. In 2012 alone, the platform added seven new patient support communities to bring its total to 33 (which is now 35), allowing people to connect with others who share the same conditions or symptoms, whether it be in networks like “Living With Narcolepsy,” Traumatic Brain Injury or Guillain-Barre Syndrome.

The concept is similar in practice to that of a network called CureTogether, which was acquired by 23andMe last year. The difference between Ben’s Friends and other startups with similar ambitions, Orn told us recently, is that each disease has its own dedicated network and site. Everything on those pages, he says, revolves around that particular condition and the community of people who suffer from that condition. In turn, Ben’s Friends is volunteer-driven, with support communities adding content, resources and moderating each site themselves. The network of volunteer operators has grown to several hundred, Orn says.

The technology behind these sites isn’t necessarily new or sexy, originally built using a combination of Ning and Basecamp to keep the costs of hosting, scaling and project management low. And the community isn’t enormous, either. Ben’s Friends today only has about 30,000 members, but the engagement is high and the information collected by its community on these rare diseases is extremely valuable.

But it works, Orn says, because “the entire network is powered by volunteer moderators. We have 150+ people who keep the networks humming. They are also patients and understand what members are going through. They tell us that becoming a moderator changed their relationship with their disease. It took something negative and turned it into a positive.”

Comparatively, CureTogether took arguably an even greater quantitative approach to its community (which is what 23andMe found appealing), while Ben’s Friends has focused more on providing this kind of support — on making it easy for people to find and make those critical emotional connections with others who’ve experienced the same conditions. Of course, the importance of that shared community is something that holds true far beyond the scope of rare diseases and is as old as the earliest Web forums and, well, offline communities well before that.

Orn tells us that the look and feel of the site is owed to an approach the founders adopted early on: Capital efficiency. Monetizing rare diseases just isn’t an acceptable business model, Orn explained in the Harvard Business Review, which is why the founders felt they couldn’t justify raising venture capital. For it to work, everything had to be free and scalable, while avoiding as many fixed costs as possible. Since 2010, they’ve raised about $65K in donations from foundations, members and friends, as well as by running a campaign on Indiegogo — bootstrapping the rest of the way.

And, today, Ben’s Friends is launching its first native app (for the iPhone) to give patients around-the-clock, on-demand access to support groups while on-the-go. Reflecting macro trends, the founders say that mobile traffic to the site has increased significantly over the last year and now makes up over 25 percent of total traffic as patients turn to their mobile devices to access support groups and health info.

People with rare diseases also tend to find themselves spending a lot of time in waiting rooms at doctor’s offices, hospitals and clinics, making an iPhone app a fairly natural extension of the platform. Accessing support groups and relevant information at the time of diagnosis or surgery helps reduce anxiety, fear and figure out the right questions to ask. The same is true of Cancer.net’s iOS app (and these patient support apps), as well as more information-centric health resources like HealthTap, HealthKeep, HealthGuru and more.

To that end, Ben’s Friends has collected over 2,000 recommendations for doctors who specialize in rare diseases, which will be available in the app’s next update, coming soon. Recommendations like these are particularly critical for those with rate diseases, the founders explain, considering how frequently they are misdiagnosed. Naturally, being referred to a doctor who is aware of rare symptoms and conditions can potentially reduce the chance of being misdiagnosed.

“We never wanted to become one of those nonprofits that have massive overhead and have to spend half of their time raising money,” Munoz says. “We thought of it as a little software startup … in a garage eating Ramen noodles and peanut butter. How do we do it cheaper? How do we automate?”

And so far, it’s been working.

Tumblr Brings More Ads To Users’ Dashboards, Rearranges Buttons & Teens Freak Out

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A month after Tumblr introduced sponsored posts into its native mobile applications, the company is today bringing those same brand advertisements to its web dashboard. Launch partners for these new “Sponsored Web Posts,” as they’re called, include Viacom, Ford Motor Company, Universal Pictures, Capital One, AT&T, Denny’s and Purina.

Tumblr users will be able to reblog, like, follow and share these ads and the brands themselves directly from their web dashboard, which of course, is what we know all the Tumblr-lovin’ teens are just dying to do. Like Tumblr’s sidebar “Radar” ads, the new sponsored posts will be marked with an animated dollar sign icon to indicate that they are paid placements.

Also like Tumblr’s mobile advertising, users will only see up to four sponsored posts per day. The company notes in a brief announcement on the new ads that sponsored posts have already seen over 10 million likes and reblogs since their debut.

Sponsored Web Posts in the dashboard will continue to roll during a beta period that ends in June 2013. During the first week, premiere spots belong to Viacom, Ford Motor Company and Universal Pictures, and then they’ll become available to Capital One, AT&T, Denny’s and Purina.

“The engagement rates on the Tumblr Radar and Sponsored Mobile Posts have been spectacular and we have taken this same carefully architected approach to this new web in-dash opportunity,” said Lee Brown, Global Head of Sales at Tumblr, in a release. “The Tumblr post is a flexible, dynamic and expressive medium, and we are delighted to give marketers yet another opportunity to promote their content and connnect with this vibrant and engaged community.”

As Tumblr founder David Karp has previously explained time and again, Tumblr wants to offer advertisers canvas and space for “creative brand advertising” – something he feels hasn’t really had anywhere to live on the web. “We want to give them the space to do anything, a four-second loop, an hour and a half video, a high-res panorama, whatever they need to help them build amazing, interactive ads,” he said onstage during the TechCrunch Disrupt NY event in early May, ahead of the $1.1 billion Yahoo acquisition.

The expansion of brand advertising in Tumblr was expected, whether or not Yahoo bought the company. (Yahoo’s bigger plans involve search ads and ads that bloggers run themselves, for instance, and it doesn’t expect to see significant revenue from ads until next year.) But Tumblr’s younger user base is sensitive to change, and likely they’ll see these ads a disturbance, then blame Yahoo.

Already the user base was distressed over the impending acquisition, some leaving in droves for WordPress after the fact, and today a minor change to the Tumblr dashboard involving the relocation of the Reblog and Notes buttons has them hand-wringing again. Those changes rolled out yesterday, and today have reached 100 percent of Tumblr’s user base. The company says the buttons were moved for consistency between mobile and web.

These buttons used to be at the top of posts on the web dashboard, and now they’re on the bottom – I know, right? The horror! And if you think that’s bad, just wait until the kids see these new ads.

Tumblr’s teenaged audience has led to explosive growth for the company, but those users are also known to be fickle (and dramatic), which makes every change that Yahoo/Tumblr enacts going forward risky. It still remains to be seen whether or not the audience will stick around as the site becomes less of an online hideout, and more ad-driven in the future.