YouTube to invest $100M in kids’ content that showcases character strengths, like compassion and curiosity

YouTube in September announced a $100 million fund to invest in new children’s video content, following its $170 million settlement with the FTC over children’s privacy law violations. The fund was meant to help soften the blow for children’s content creators on YouTube, who are being financially impacted by the changes the FTC required of their channels. Now we have the first bit of insight into what sort of content YouTube plans to back with the fund’s resources.

According to a report by Bloomberg, YouTube is looking to fund videos that “drive outcomes associated with the following character strengths:” courage, compassion, communication, gratitude, curiosity, humility, teamwork, integrity, perseverance, self-control, empathy, and creativity.

The details were shared in a note to partners, the report said.

“All our programming will seek to support kids in uncovering their unique strengths and passions,” the note read. “Specifically, we want to develop content that inspires children to develop life skills and pursue their passions; establish healthy habits and care for themselves; increase their understanding of culture and diversity; and/or engage with and care for their community.”

YouTube confirmed the report’s accuracy to TechCrunch. It said the company is now in discussions with partners, but further details on the kids content fund wouldn’t be shared until later this year.

The planned $100 million investment, which will be distributed over the next three years, is meant to help set the tone for the sort of children’s video content YouTube wants to see more of on its video-sharing platform.  Today, a number of creators in the kids’ space are gaining views for things like toy unboxings, pranks and family vlogs. For example, Ryan Kaji of Ryan’s World and Ryan ToysReview, was YouTube’s highest-paid star of 2019, pulling in a massive $26 million.

Parents, on the other hand, don’t often care for their kids’ addiction to this sort of lightweight, consumer-driven content. And thanks to updated screen time controls across iPhone and Android, they can now choose to limit the time their kids spend on YouTube. And with a growing number of streaming services on the market, including the kid-friendly Disney+, kids and families have other options.

The move to fund an elevated set of kids’ content could also help YouTube attract more advertising dollars, as companies are looking to pair their marketing messages with “brand-safe” content, which can be hit-or-miss on YouTube at times.

YouTube has no immediate concerns on the ad revenue front, having pulled in $15 billion in 2019. But the company knows there’s still so much more room to grow, given the TV ad market still massively dwarfs YouTube, with $70 billion in ad spending last year.

Daily Crunch: Spotify is acquiring The Ringer

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. Spotify is buying The Ringer to boost its sports podcast content

Spotify is doubling down on its podcast strategy with a big acquisition to grow its sports coverage: It announced that it’s buying The Ringer, the popular network of podcasts created and run by broadcaster Bill Simmons, with around 30 podcasts in its mix and approximately 100 million downloads per month.

“The trend that we are investing in here is that radio is moving online,” CEO Daniel Ek said in the earnings call today. “We have bought the next ESPN.”

2. Three years after raising $450M, Andreessen is back with a new $750M life sciences fund

So far, the firm has only had one exit from its life science portfolio: the $65 million acquisition of Jungla by the genetics testing firm Invitae back in 2019.

3. Disney+ already has 28.6M subscribers

On yesterday’s earnings call, Disney CEO Bob Iger said the streaming service — which launched in November — has grown to 28.6 million paying subscribers as of February 3. The company also says it plans to launch Hulu internationally next year.

4. The Zebra raises $38.5M as the insurance marketplace race heats up

The Zebra joins competing startups, including Insurify ($23 million), Gabi ($27 million) and Policygenius ($100 million) in raising new capital this year. Alex Wilhelm looks at why venture capitalists are putting so much money into this market.

5. Russia’s push back against big tech has major consequences for Apple

Apple’s long-running policy of not preloading third-party software onto its devices is coming up against a new piece of Russian legislation requiring every smart device to be sold with certain applications already installed. Inside the country, the policy has even been called the zakon protiv Apple, or the “law against Apple.” (Extra Crunch membership required.)

6. Tier Mobility, the European e-scooter rentals startup, adds new COO and CCO to executive team

Following Tier Mobility’s $60 million Series B late last year, the e-scooter rentals startup has been busy bolstering its C-suite.

7. Deliverr lands $40M Series C to bring two-day shipping to any merchant

Deliverr doesn’t own a warehouse or a delivery truck, but the startup is helping e-commerce companies not named Amazon achieve Amazon-like two-day shipping. Based on its understanding of markets, the company moves goods to different parts of the country, stores them in available warehouse space and uses the warehouse’s own picking systems to grab the goods.

Disney aims to launch Hulu internationally in 2021

Hulu will finally expand outside of the U.S., likely as soon as next year. This tidbit of news was confirmed by Disney Chairman and CEO Bob Iger on this week’s earnings call with investors. Disney now has full operational control of Hulu, following its acquisition of 21st Century Fox and subsequent deal with NBCU. That’s given it the means to streamline Hulu’s operations and international plans — as it began to do this week with the Hulu reorg that included the departure of Hulu CEO Randy Freer.

Disney said it wanted to better integrate Hulu with its direct-to-consumer operations, which is the first step towards being able to make good on its international ambitions.

The company is also now beginning to leverage the assets it acquired by way of the Fox deal to grow Hulu’s original content lineup. Starting next month, for example, Hulu will become the exclusive streaming service for all new FX Original programming. In addition, Hulu will offer in-season streaming of current FX shows and back seasons for most of its current and library series to subscribers.

An expanded original content library helps Hulu to attract subscribers in markets where its catalog may not be as robust as here in the U.S. That includes not only FX but also content from Disney’s other studio efforts that don’t meet the “family-friendly” threshold for launching on Disney+ — like Marvel’s R-rated movies, for instance.

Disney didn’t confirm a precise time frame for Hulu’s international launch, as Iger said the first priority is the global rollout of Disney+, which has had a booming start. The company announced that Disney+, which only launched in mid-November, has already grown to 26.5 million paying subscribers. Hulu, by comparison, has 30.4 million in total, but has been around for roughly 12 years.

But now Hulu is benefitting from the Disney+ demand, by way of the bundle deal that wraps Hulu, Disney+ and ESPN+ together for $12.99 per month. That has helped to lower churn rates, Disney said.

According to Iger, Disney+ will roll out to Western Europe in March, then India on March 29, followed by the rest of the world going into 2021, including Latin America.

“We feel that we need to concentrate on those launches, in the marketing and the creation of product for those and then come in with Hulu right after or soon after that,” said Iger. “So we don’t have specifics, except we do plan to begin rolling Hulu out, I’d say probably in 2021 — internationally that is — after the Disney Plus launch,” he added.

Disney+ to launch in India through Hotstar on March 29

Disney plans to bring its on-demand streaming service Plus in India through Hotstar on March 29, a little earlier than expected, the company said Tuesday.

In an earnings call with analysts, Disney chief executive Bob Iger said the company will launch the service in the world’s second largest internet market at the beginning of the next edition of IPL cricket tournament, the most noteworthy event on Hotstar all year. He also revealed that Disney+ had amassed 26.5 million paying subscribers worldwide.

TechCrunch reported in November that the company was planning to launch its streaming service in India by second half of the year, followed by  entry in Southeast Asian markets. We also reported that the company was likely to hike the price of Hotstar service, which at its peak had about 300 million users in India.

Iger declined to share specifics about how much the company would charge for Disney+ featuring Hotstar, but said it will bring “two primary products” into India.

“One will be more premium in nature that will include the entire library of original programming and the other one will be more basic that will have the library and not the original programming priced for the market and launched at a very peak period of time for the IPL, the Cricket League,” he said.

“So we think it’s an opportune moment, we take advantage of the presence of Star in the market and the millions of subscribers that they also have, we take advantage of the sports tie-in and we use the interface and the technology that includes the billing that already exists to launch a service we believe under very, very optimal circumstances,” he added.

More to follow…

Disney+ already has 26.5M subscribers

The Walt Disney Company just announced that its streaming service Disney+ has 26.5 million paying subscribers — ahead of the already-impressive 25 million predicted by Wall Street analysts.

Disney+ launched on November 12 and is not yet available globally. The day after the launch, the company said the service already had more than 10 million subscribers.

Disney also released subscriber numbers for ESPN+ (6.6 million) and Hulu, where it owns a controlling stake (27.2 million for subscription video on-demand only, 3.2 million for SVOD and live TV, 30.4 million total).

In comparison, said Netflix said last month that it has 167 million paid subscribers worldwide.

This was all part of the company’s earnings for the first quarter of its 2020 fiscal year — its first earnings report since Disney+ launched. So these numbers reflect subscriber counts as of December 28, 2019.

Also worth noting: Someone can be a “paid subscriber” from Disney’s perspective without actually paying Disney, thanks TechCrunch’s parent company Verizon providing certain customers with 12 months of Disney+ service for free.

“We had a strong first quarter, highlighted by the launch of Disney+, which has exceeded even our greatest expectations,” said Disney Chairman and CEO Robert Iger in a statement. “Thanks to our incredible collection of brands, outstanding content from our creative engines and state-of-the-art technology, we believe our direct-to-consumer services, including Disney+, ESPN+ and Hulu, position us well for continued growth in today’s dynamic media environment.”

During the quarter, Disney says its direct to consumer and international business (which includes streaming) saw revenue increase from $0.9 billion to $4.0 billion year-over-year, while the unit’s operating loss increased from $136 million to $693 million. Disney attributed these growing losses to “costs associated with the launch of Disney+, the consolidation of Hulu and a higher loss at ESPN+.”

Twitter’s manipulated media policy will remove harmful tweets & voter suppression, label others

Twitter today is announcing the official version of its “deepfake” and manipulated media policy, which largely involves labeling tweets and warning users of manipulated, deceptively altered or fabricated media — not, in most cases, removing them. Tweets containing manipulated or synthetic media will only be removed if they’re likely to cause harm, the company says.

However, Twitter’s definition of “harm” goes beyond physical harm, like threats to a person or group’s physical safety or the risk of mass violence or civil unrest. Also included in the definition of “harm” are any threats to the privacy or the ability of a person or group to freely express themselves or participate in civic events.

That means the policy covers things like stalking; unwanted or obsessive attention; targeted content containing tropes, epithets, or material intended to silence someone. And notably, given the impending U.S. presidential election, it also includes voter suppression or intimidation.

An initial draft of Twitter’s policy was first announced in November. At the time, Twitter said it would place a notice next to tweets sharing synthetic and manipulated media, warn users before they shared those tweets, and include informational links explaining why the media was believed to be manipulated. This, essentially, is now confirmed as the official policy but is spelled out in more detail.

Twitter says it collected user feedback ahead of crafting the new policy using the hashtag #TwitterPolicyFeedback and gathered over 6,500 responses, as result. The company prides itself on engaging its community when making policy decisions, but given Twitter’s slow to flat user growth over the years, it may want to try consulting with people who have so far refused to join Twitter. This would give Twitter a wider understanding as to why so many have opted out and how that intersects with its policy decisions.

The company also says it consulted with a global group of civil society and academic experts, such as Witness, the U.K.-based Reuters Institute, and researchers at New York University.

Based on feedback, Twitter found that a majority of users (70%) wanted Twitter to take action on misleading and altered media, but only 55% wanted all media of this sort removed. Dissenters, as expected, cited concerns over free expression. Most users (90%) only wanted manipulated media considered harmful to be removed. A majority (75+%) also wanted Twitter to take further action on the accounts sharing this sort of media.

Unlike Facebook’s deepfake policy, which ignores disingenuous doctoring like cuts and splices to videos and out-of-context clips, Twitter’s policy isn’t limited to a specific technology, such as A.I.-enabled deepfakes. It’s much broader.

“Things like selected editing or cropping or slowing down or overdubbing, or manipulation of subtitles would all be forms of manipulated media that we would consider under this policy,” confirmed Yoel Roth, head of site integrity at Twitter.

“Our goal in making these assessments is to understand whether someone on Twitter who’s just scrolling through their timeline has enough information to understand whether the media being shared in a tweet is or isn’t what it claims to be,” he explained.

The policy utilizes three tests to decide how Twitter will take action on manipulated media. It first confirms the media itself is synthetic or manipulated. It then assesses if the media is being shared in a deceptive manner. And finally, it evaluates the potential for harm.

Media is considered deceptive if it could result in confusing others or leading to misunderstandings, or if it tries to deceive people about its origin — like media that claims it’s depicting reality, but is not.

This is where the policy gets a little messy, as Twitter will have to examine the further context of this media, including not only the tweet’s text, but also the media’s metadata, the Twitter’s user’s profile information, including websites linked in the profile that are sharing the media, or websites linked in the tweet itself. This sort of analysis can take time and isn’t easily automated.

If the media is determined also to cause serious harm, as described above, it will be removed.

Twitter, though, has left itself a lot of wiggle room in crafting the policy, using words like “may” and “likely” to indicate its course of action in each scenario. (See rubric below).

For example, manipulated media “may be” labeled, manipulated and deceptive content is “likely to be” labeled. Manipulated, deceptive and harmful content is “very likely” to be removed. This sort of wording gives Twitter leeway to make policy exceptions, without actually breaking policy as it would if it used stronger language like “will be removed” or “will be labeled.”

That said, Twitter’s manipulated media policy doesn’t exist in a vacuum. Some of the worst types of manipulated media, like non-consensual nudity, were already banned by the Twitter Rules. The new policy, then, isn’t the only thing that will be considered when Twitter makes a decision.

Today, Twiter is also detailing how manipulated media will be labeled. In the case where the media isn’t removed because it doesn’t “cause harm,” Twitter will add a warning label to the tweet along with a link to additional explanations and clarifications, via a landing page that offers more context.

A fact-checking component will also be a part of this system, led by Twitter’s curation team. In the case of misleading tweets, Twitter aims to present facts from news organizations, experts and others who are talking about what’s happening directly in line with the misleading tweets.

Twitter will also show a warning label to people before they retweet or like the tweet, may reduce the visibility of a tweet, and may prevent it from being recommended.

One drawback to Twitter’s publish-in-public platform is that tweets can go viral and spread very quickly, while Twitter’s ability to enforce its policy can lag behind. Twitter isn’t proactively scouring its network for misinformation in most cases — it’s relying on its users reporting tweets for review.

And that can take time. Twitter has been criticized over the years for its failures to respond to harassment and abuse, despite policies to the contrary, and its struggle to remove bad actors. In other words, Twitter’s intentions with regard to manipulated media may be spelled out in this new policy, but Twitter’s real-world actions may still be found lacking. Time will tell.

“Twitter’s mission is to serve the public conversation. As part of that, we want to encourage healthy participation in that conversation. Things that distort or distract from what’s happening threaten the integrity of information on Twitter,” said Twitter VP of Trust & Safety, Del Harvey. “Our goal is really to provide people with more context around certain types of media they come across on Twitter and to ensure they’re able to make informed decisions around what they’re seeing,” she added.

 

Apple’s TV App and Apple TV+ arrive on 2019 LG TVs

The Apple TV app, including access to the new streaming service Apple TV+, has now arrived on LG smart TVs. This week, LG announced the launch of the Apple TV app on compatible 2019 LG smart TVs in the U.S. and in over 80 other countries worldwide. The app will also arrive on 2018 smart TVs later this year, and it’s available on 2020 TVs at launch.

Users are able to access the new app from the LG Home Launcher, and can then stream Apple TV+ shows, subscribe to Apple TV channels, access their iTunes video library, and buy or rent over 100,000 movies and TV shows from iTunes.

In addition, LG touts that Apple’s wide range of titles available in Dolby Vision — like most Apple TV+ content — will be supported on LG’s latest TVs. Apple’s AirPlay 2, which allows users to mirror content from their iPhone, iPad or Mac on their TV, is also available. So is Apple’s HomeKit, allowing the TV to be controlled with Apple’s Home app or by using Siri.

The Apple TV app, AirPlay 2, and HomeKit will now work on all of LG’s 2019 OLED TVs, NanoCell TVs (series SM9X and SM8X). Later this month, the app will arrive on select UHD TVs (series UM7X and UM6X). And later this year, support will be extended to LG’s 2018 TVs via an over-the-air firmware upgrade. However, anyone buying a 2020 LG TV will have the Apple TV app available at launch, the company says.

With the launch of Apple TV+ in November, Apple had no choice but to support a wider ecosystem in order to accommodate the variety of ways people today watch TV. Today, the TV app works on all Apple devices and the web, plus streaming media players like Fire TV and Roku. However, only Samsung was the first to have the TV app available across a wide number of smart TVs. According to Apple’s website, other TV manufacturers including Sony and VIZIO, only offer AirPlay 2 support for now.

Cards Against Humanity acquires ClickHole, will make employees the majority owners

Cards Against Humanity, the company behind the card game of the same name, has acquired the satirical site ClickHole from G/O Media.

BuzzFeed News broke the story last night, reporting that ClickHole’s employees will become the majority owners of the site. Cards Against Humanity founder Max Temkin told BuzzFeed that the goal is to give the ClickHole team “a chance to do their own thing,” with the resources to expand beyond the current five-person team.

“We’re giving them funding, and if they ask us, we’ll be an advisor,” Temkin said.

ClickHole launched in 2014 as part of The Onion, with a focus on parodying the kind of viral content that you’d find on sites like BuzzFeed and Upworthy (it published the greatest diet guide of all time).

The Onion was acquired by Univision, which then acquired a number of Gawker Media properties (but not Gawker itself) and rebranded them as the Gizmodo Media Group. Univision sold both organizations off to private equity firm Great Hill Partners last year, giving them yet another name: G/O Media.

Things haven’t gotten noticeably smoother since then, with G/O Media executives shutting down the political site Splinter, followed by Deadspin editors and writers resigning en masse after a clash over the direction of the site, particularly a directive to stick to sports-related content.

We’ve reached out to both G/O Media and Cards Against Humanity for additional comment. Before the news broke yesterday, ClickHole published a story declaring, “Our Computer Has Become Infested With Crickets And ClickHole Is Temporarily Going On Standby.”

Daily Crunch: Hulu CEO steps down

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. Hulu restructures under Disney, CEO Randy Freer departs

Hulu CEO Randy Freer is stepping down from his role as part of a major restructuring of Disney’s streaming business. The move signals Disney’s plans to streamline its direct-to-consumer operations, which also include Disney+ and ESPN+.

Disney took control of Hulu last year following its acquisition of 21st Century Fox and a subsequent deal with the service’s other owner, NBCUniversal. However, the company had largely left Hulu alone to operate as usual — until now.

2. BlackBerry and TCL will end their handset partnership in August 2020

BlackBerry and TCL announced that they would end their four-year brand licensing and tech support partnership in August 2020, with TCL ceasing to make new models of BlackBerry handsets after that point.

3. Launch startup Skyrora successfully tests 3D-printed rocket engines powered by plastic waste

Skyrora’s rocket engines are novel not only in their use of 3D printing, but also because the fuel that powers them is developed from plastic waste — a new type of fuel called “Ecosene” the startup says makes its launch vehicles greener and more ecologically sound than the competition.

4. Apple News adds coverage of 2020 US presidential election, including guides to candidates, issues & news literacy

The coverage includes curated news, information and election data from ABC News, CBS News, CNN, FiveThirtyEight, Fox News, NBC News, ProPublica, Reuters, The Los Angeles Times, The New York Times, The Wall Street Journal, The Washington Post, TIME, USA Today and others. The Apple News editorial team has also put together a series of curated guides, special features and other resources for readers from both sides of the political spectrum.

5. Nigeria is becoming Africa’s unofficial tech capital

Nigeria has become a magnet for venture capital, a hotbed for startup formation and a strategic entry point for Silicon Valley. Still, Jake Bright acknowledges that as a frontier market, there is volatility to the country’s political and economic trajectory. (Extra Crunch membership required.)

6. Watch this year’s tech-themed Super Bowl ads from Amazon, Google and more

Some of these ads come from tech giants like Amazon and Facebook, which have hired big stars to promote their products. Meanwhile, Dashlane found a fun way to remind viewers of the nightmare of life without a password manager, while Squarespace enlisted Winona Ryder to build a website on the platform.

7. This week’s TechCrunch podcasts

The latest full episode of Equity features a discussion of why Kleiner Perkins is investing its latest fund of $600 million at a rapid pace, while the Monday news roundup looks at the global market’s response to coronavirus fears. And over at Original Content, we review the Netflix cheerleading documentary “Cheer.”

Hulu restructures under Disney, CEO Randy Freer departs

Hulu CEO Randy Freer is stepping down from his role as part of a major restructuring of Disney’s direct-to-consumer business, the company announced on Friday. Disney had acquired control of Hulu last year following its acquisition of 21st Century Fox and subsequent deal with NBCU which gave it full operational control. However, the company had largely left Hulu alone to operate as usual until now.

The move signals Disney’s plans to streamline its direct to consumer operations, which also today include Disney+ and ESPN+.

Freer joined Hulu in October 2017 after previously serving as president and COO of Fox Networks Group. While there, Hulu grew its subscribers to 29 million, as of a September 2019 SEC filing.

The reorganization will see Hulu’s executives now reporting directly to their counterparts at Disney’s Direct to Consumer and International business (DTCI), headed by DTCI chairman Kevin Mayer.

The changes will allow Disney to better distribute resources across its various streaming services, as well as take Hulu to international markets more quickly and efficiently.

Hulu’s international expansion is something that was already being discussed, even before Disney took full control. In late 2018, Disney chairman and CEO Bob Iger said that the company planned to meet with Hulu’s management team after the Fox deal closed in order to go over plans for Hulu’s global growth and investing in more original content. The latter would help Hulu to better approach international markets where the streamer wouldn’t have as large a catalog from local content owners to offer potential customers.

With Fox, Disney gained access to the Fox studio and FX, which it could use to help fill out Hulu with more original content. And as a part of Disney’s DTCI business, it could be easier to experiment with differently priced Disney+/Hulu/ESPN+ bundle deals in various countries, instead of having to work with Hulu’s leadership on each one.

“I want to thank Randy for his leadership the last two years as CEO and for his collaboration the past several months to ensure an exceptionally bright future for Hulu,” Mayer said, in a statement released this weekend. “With the successful launch of Disney+, we are now focused on the benefits of scale within and across our portfolio of DTC businesses. Further integrating the immensely talented Hulu team into our organization will allow us to more effectively and efficiently deploy resources, rapidly grow our presence outside the U.S. and continue to relentlessly innovate. There is a tremendous amount of opportunity ahead, and I am confident in our ability to accelerate our positive momentum and better serve consumers,” he added.

Freer offered Disney praise on his way out.

“I am grateful for my time at Hulu, and the opportunity to work and learn with an incredibly talented and dedicated group of people,” Freer said, according to a statement shared by Variety. “I also want to thank Kevin and The Walt Disney Company, as well as NBCUniversal and Fox, for providing me the opportunity to lead Hulu during a time of tremendous growth and significant industry transformation. Hulu has established itself as a leading choice for consumers looking for the best TV service available today, and I am confident Hulu will thrive inside Disney under DTCI’s leadership and resources,” he said.