Tag Archive | "military"

Airware Raises $10.7M From Andreessen Horowitz To Build Brains For Unmanned Drones

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Ready for a sky full of robo-planes?

Airware, a company that’s building the brains and guts for commercial unmanned drones, is announcing this morning that they’ve raised a big ol’ $10.7M Series A.

The round is led by Andreessen Horowitz, and backed by Google Ventures (Cue the conspiracy theories about why Google’s venture arm is puttin’ money into drones in 3…2…) As part of the round, Andreessen Horowitz partner Chris Dixon will be joining Airware’s board.

To be clear, Airware doesn’t make drones — they make the brains for drones. If you were to order something from Airware, you’d get a logic board (which handles things like auto-pilot, wireless communication, etc.) and all of the actuators and sensors you’d probably want to put in a drone.

The word “drone” can be a bit spooky. The first thing most folks think of when they hear “drone” (or “unmanned aircraft”) is their crazy controversial (and, yes, pretty terrifying) use by the world’s militaries.

That’s a shame, though. Like all technology, drones are not inherently evil — nor are they all killing machines. There are a bunch of completely innocent uses for drones — none of which involve shootin’ you from the sky or getting all Big Brother-y, and all of which are only made feasible by having a robot soaring a few thousand feet above the ground.

Over in Kenya, Airware-powered drones are being built to monitor the dwindling population of Northern White Rhinos to combat poaching. Head for the slopes, and companies are working on building drones to search for lost skiers. Other teams, meanwhile, are working on drones that use high-res infrared cameras to monitor their infrastructure for damaged power or gas lines. Vaccine delivery! Air quality research!

It’s important to make that distinction, as Airware doesn’t seem all that interested in working with the military. While they don’t rule out the possibility moving forward, Airware CEO Jonathan Downey tells me that not a one of their dozens of customers are military-focused.

(Plus, the U.S. military is already spending a few billion a year on their own drone research. They’re probably pretty good to go on their own.)

Instead, Airware wants to fill the gap between the massively-funded military drone work and the nascent DIY drone (or “personal UAV” — yeah, it exists) community.

While Airware came into existence back in 2011, Downey actually found his love for drones while studying at MIT a few years prior. He and a few friends entered a drone-building competition, and were surprised at just how limited and black-boxy all of the available drone tech was. A few years and a stint at Boeing later, Jonathan dove into building drones full time, raising a small seed round to get the ball rolling.

By the end of last year, that money had run dry. Through a twist of fate and a bit of good timing, the company made it into Y Combinator’s Winter 2013 class just as the FAA was opening up U.S. airspace to commercial drones. 4 months and one big YC demo day later, the company’s $10.4M Series A is the biggest post-Demo Day round in YC history.

Article courtesy of TechCrunch

After Years Of Government Scrutiny Over Security Concerns, Huawei Says It’s Quitting The U.S.

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Huawei, the world’s second-largest supplier of network gear by revenue, is pulling out of the U.S. after it sales efforts have been repeatedly stymied due to concerns over national security. According to a report in the Financial Times, executive vice president Eric Xu said at the company’s annual analyst summit yesterday that Huawei “is not interested in the U.S. market any more.” He added that the company has been gradually shifting its focus away from the U.S. over the last year as it seeks to expand in other global markets.

Huawei’s decision to pull out of the U.S. market is not a complete surprise. Earlier this month, Bob Cai, Huawei’s vice president in charge of wireless-network marketing, admitted the company’s U.S. growth will be hindered this year by security concerns, and that it’s looking toward Europe and Asia to grow its key wireless-network business.

But the decision still represents a represents a major setback for Huawei, which had been trying build up its U.S. business despite repeated efforts by politicians and security officials to label the Chinese company a threat to national security interests.

Huawei has now revised its long-term outlook for its enterprise business and now says that its goal of generating $15 billion in revenue from the business by 2017 is “too optimistic.” That target has been shaved down to $10 billion. The unit’s chief executive William Zu still expects revenues to grow 45 percent this year, up from 25 percent growth in 2012.

Xu’s vow to back away from the U.S. comes after the company suffered two major setbacks. Last October, a U.S. congressional report fingered Huawei and Chinese rival ZTE as a threat to national security, calling on U.S. government and private sector companies to avoid buying equipment from both. At the end of March, Sprint Nextel and Japanese telecom SoftBank promised the House intelligence committee not to use equipment from Huawei if they merge.

Despite a major lobbying campaign by Huawei, as well as an appeal by senior executive Ken Hu for the U.S. government to launch a formal investigation, which Hu said would clear his company, the U.S. congressional report hurt Huawei’s presence in the U.S. According to the Financial Times, Huawei has halted its U.S expansion, and its R&D staff has dropped from 800 to 500.

The U.S. congressional report was not the first setback dealt to Huawei by the U.S. government. Back in 2008, Huawei had to retract a bid for 3Com after finding out that the deal would not gain regulatory approval from D.C. In 2010, it lost a bid for a multibillion-dollar contract to supply network infrastructure to Sprint Nextel after the U.S. government intervened.

The U.S. government’s suspicious attitude toward Huawei stems in part from the military background of its founder Ren Zhengfei, who served as an engineer in the People’s Liberation Army. Huawei’s detractors worry that Ren still maintains close ties with the Chinese government.

Huawei has had more luck building out its global presence in Britain, where BT, Vodafone, and EE are its major customers, but its still faced a fair amount of scrutiny in Europe. Earlier this month, it was reported that the European Commission is seeking to investigate Huawei and ZTE for undercutting domestic firms by receiving state subsidies, a charge Huawei denied. An internal EU report last year also recommended that the EU take steps to limit the growth of Chinese telecoms equipment makers, citing domestic competition as well as threats to security.

Article courtesy of TechCrunch

Goldman Sachs’ Anthony Noto Will Talk Technology Investments At Disrupt NY

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There is a marquis name that has appeared on the S-1s of the most high-profile IPOs in the past two years — Goldman Sachs. And joining us at TechCrunch Disrupt New York is the man responsible for many of the investment bank’s bets on technology, Anthony Noto, the global co-head of Goldman Sachs’ global telecommunications, media and technology group.

After a number of well-performing IPOs for technology companies (Workday), some controversial ones (Facebook), and offerings that have performed dismally in the financial markets (Groupon and Zynga), the jury is still out on whether Wall Street gets Sand Hill Road. Noto and Goldman Sachs have been the underwriters for all of these companies, and with the next wave of technology companies, such as Box, Dropbox and others, expected to go public; we can expect Goldman Sachs to be a driving force.

Is there an IPO market for consumer technology companies in the future, or is enterprise king among bankers these days? What can be learned by Facebook’s messy public offering? Noto will be answering these questions and many more in a couple of weeks.

He joins our list of Disrupt NY speakers that currently includes Bill Gurley, Chamath Palihapitiya, John Donahoe, Roelof Botha, Ron Conway and David Lee, with more to be announced.

Tickets are available here.

Our sponsors help make Disrupt happen. If you are interested in learning more about sponsorship opportunities, please contact our sponsorship team here sponsors@techcrunch.com.


Anthony Noto
Goldman Sachs

Anthony Noto is global co-head of the Technology, Media and Telecom (TMT) Group. Before that, he was co-head of the Global Media Group for TMT Investment Banking. Anthony rejoined Goldman Sachs in 2010 after serving as the National Football League’s executive vice president and chief financial officer for nearly three years. While at the NFL, he oversaw league-wide finance and strategy functions, including corporate development, labor finance, operational finance and accounting, tax and treasury.

Prior to joining the NFL, Anthony was the Internet, Entertainment and Cable Equity Research analyst and business unit leader for the Communications, Media and Entertainment Equity Research team at Goldman Sachs.

Anthony joined the firm in 1999 in Equity Research to cover the Internet sector and added coverage of the Entertainment sector in 2003. He was a top-ranked analyst in both the Internet and Entertainment sectors in the annual Institutional Investor poll and Greenwich Survey from his first year covering each sector. Anthony also achieved the distinction of being the No. 1 ranked Internet analyst from 2003 to 2007. He was named managing director in 2003 and partner in 2004.

Prior to first joining Goldman Sachs, Anthony worked at Lehman Brothers, where he was part of the Institutional Investor All-American Team covering the Broadline Retailing sector. Before transitioning to equity research, Anthony was a brand manager at Kraft Foods and a captain in the U.S. Army as a telecommunications officer. Anthony serves on the boards of Women’s World Banking and Greenwich Academy.

Anthony was a U.S. Army Ranger, an All-East and Academic All-American football player, and the No. 1 graduate in mechanical engineering from the United States Military Academy in 1991. He also earned an MBA from the Wharton School of the University of Pennsylvania.

Article courtesy of TechCrunch

Excerpts From Laurene Powell Jobs’ First Interview Since The Death Of Steve Jobs

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In the first interview since her husband’s death, Laurene Powell Jobs dedicated her sizable platform to advancing immigration reform, while remaining notably tight-lipped about the private life of the late Steve Jobs. We’ve included highlights (with context) from her interview with Rock Center host, Brian Williams.

On Steve Jobs: “Pretty Cool” Legacy

BRIAN WILLIAMS: It’s another way of saying we’re left with a world of really cool stuff. I always wanted to know what it was like to be a Kennedy and drive to Kennedy Airport; and what it’s like to be you at a light and watch ten people cross, and the only thing they have in common are white ear buds. What’s that like?

LAURENE POWELL JOBS: It’s pretty cool.

BRIAN WILLIAMS: (LAUGHS) It’s pretty cool. I mean, that changed our world.

LAURENE POWELL JOBS: Yeah. To do what you wanna do, to leave a mark– in a way that you think is important and lasting, that’s a life well lived.

On Immigration Reform

Powell Jobs has been a vocal advocate of immigration reform, partnering with director Davis Guggenheim (Waiting For Superman, An Inconvenient Truth) on a documentary highlighting the struggles of talented, patriotic American youth who have been denied entrance into the military and college, because they are undocumented immigrants. To add public pressure for Congress to pass a bill that provides a pathway to citizenship for children of immigrants who came to America illegally, the film (trailer below) is accompanied by a grassroots campaign and website.

BRIAN WILLIAMS: Climb into the minds of our viewers watching you guys on Friday night. So help us process this. How are we supposed to feel about their parents, who did do something bad? This is ill-gotten gains, because the first entry into this country was wrong. How are we supposed to feel about the bureaucracy we would now have to have just to hand Social Security numbers to our Marine, our civil engineer?

LAURENE JOBS POWELL: Yes. It’s understandable that people are conflicted about this. And, yes, the parents broke the law. And so I think that’s why Congress is trying to find a way to make amends. So have them pay a penalty, have them pay back taxes. Have them wait for two decades in order to have the chance to have citizenship. I mean, there are penalties that can be brought out. But then you have someone like Senator Marco Rubio who said, you know, “I understand why these parents came.” You know, if you are in desperate poverty, if you are struggling, if you would do anything in the world to get a better life for your kids, who are we to say — to judge you so harshly?

BRIAN WILLIAMS:…what about the argument that not everyone will succeed and prosper? Some people are trying to game the system; some will be a constant draw, a drain on the American economy. This won’t be all net net positive.

LAURENE POWELL JOBS: One of my favorite quotes is a lawmaker said, “I do not support any immigration policy that would have kept my grandparents out of the country.” And I think that’s a good rule. How about we agree upon what our common American values are, which is let’s make this a true land of opportunity. We’re also a land of rules and laws that should be enforced. Let’s fix this problem, and then let’s let people flourish.

Congress is slated to begin debate on a draft of comprehensive immigration reform, which will likely include provisions to allow undocumented youth a path to citizen, around mid-April.

Transcript excerpted from: “Rock Center With Brian Williams” on NBC News – Friday, April 12, 2013

[Image Credit: Wikimedia user Gobierno de Chile]

Article courtesy of TechCrunch

Ultra-Hot Secret Sharing App Whisper Raises $3 Million From Lightspeed, Trinity, And Others

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If you haven’t heard of Whisper yet, get ready to. It’s the latest social app to capture the attention of a huge — and growing — audience of users, as well as the attention of a group of investors. So far, the startup has raised $3 million in Series A funding from Lightspeed Venture Partners and others.

At the heart of Whisper’s app is the ability to anonymously share secrets with others. Those secrets take the form of photos that users can overlay text on top of. It looks a lot like the long-running PostSecret website, which has been running for years, but Whisper brings in a whole bunch of features that make it into a more full-fledged social network.

Whisper co-founder Michael Heyward told me by phone that the app was developed as a side project at secure messaging startup TigerText. Developing it with co-founder Brad Brooks, he saw Whisper as a way to enable users to share parts of their lives that they didn’t feel comfortable putting on social networks that were tied to their real identity.

“When you look at any of these identity-based social networks, people are so concerned about their image that they only post really positive things,” Heyward told me. The result is that people drastically overestimate the happiness of the other people around them, while underestimating the problems that they share. “We saw a huge white space of things that people were not publishing, and wanted to give people a place to share these things that they wouldn’t feel comfortable putting out on social networks.”

So Whisper was born. While it has some of the spirit of PostSecret, the real-time, mobile aspect of the app enables its users a way to communicate with one another that PostSecret never provided. In addition to providing immediate tools for replying publicly to other users, it also gives users the option of messaging each other privately — if they’re willing to pay for it.

Putting private messaging behind a pay wall not only has helped to drive revenue for the startup, but more importantly, it ensured the quality of the content that users shared. Heyward says the team made the decision to make messaging a paid feature more as a way to deter people from using the platform for solicitations or as a personal marketplace.

There’s also a location aspect to the app. Along with being able to see Whispers that are most popular and those which are newest, users can also see those which have been posted “Nearby.” Heyward tells me that Nearby is a relative term. The app is architected so that the radius of Whispers dubbed nearby is determined by the volume that have been posted, so that users should never feel like they’re in an empty room.

While trying to remain somewhat under the radar, the founding team has been building its user base, trying to spread the word mostly on college campuses and through university newspapers. But it’s also seeing pickup with other types of users, most notably with members of the military, including many in active duties in the war zones of the Middle East.

Nevertheless, with a limited amount of actual marketing, the app has grown extraordinarily fast. According to Heyward, the app has seen its number of users and posts doubling every month since publicly launching last November. And at the same time, it’s seeing its absolute number of page views and messages ramping up, as well.

Whisper saw more than a billion page views on the app last month, and has about 800,000 private messages sent each day. Users are incredibly engaged, opening the app on average about six times a day and spending more than a half hour checking out content through the app out of each 24. So with all that usage, it’s no big surprise that investors jumped on the opportunity to back Whisper.

Lightspeed Venture Partners led the company’s $3 million Series A round, which also included investors like Trinity Ventures, Shoedazzle founder Brian Lee, and Flixster’s Joe Greenstein. Lightspeed partner Jeremy Liew said the firm moved really fast after seeing the app’s traction and meeting the team.

Lightspeed first noticed Whisper in the App Store on a Monday and Liew met with the team the next day. By Friday they had a term sheet ready to sign, with Liew flying to L.A. on Saturday to finalize the deal. At the time it invested, Whisper was doing about 500 million page views per month, with each session being about 20 page views. “When you see that sort of engagement, it shows that the content really is compelling,” Liew wrote in an email.

Liew compared his interest in the application to a tiny little company called Snapchat that his firm invested in last year. For Liew, being able to provide a differentiator that is orthogonal to what Facebook stands for — i.e. creating a “journal of record for your life” through your real identity — is an important part of doing social in a way that Facebook can’t replicate.

“With Snapchat, we saw much more real and authentic engagement than Facebook or Twitter or Instagram because you weren’t being ‘held to’ your photos and messages since they disappeared,” Liew wrote by email. “With Whisper you get much more real and authentic posts than FB or Twitter or Instagram because you weren’t being ‘held to’ it because of the anonymity. In both cases it makes for really compelling content.”

So will Whisper be the next Snapchat? While it’s grown quickly over the first several months of downloads, it doesn’t necessarily play in the same arena. And the Whisper team of 10, with some VC backing behind it and revenues from messaging, is looking to continue to expand.

The app is currently only on iOS, and according to App Annie, downloads have stalled a bit. But Whisper is looking to add Android soon. Once that happens, it’ll open up to a whole new group of users who don’t currently have access to it. At that point, the sky’s the limit.

Article courtesy of TechCrunch

I’m More Afraid Of The Chinese Government Than The U.S. Government

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There are two governments vying to be the best at spying on U.S. citizens: the American government and the Chinese government. While I’m not thrilled about either military sifting through my private data, if information sharing allows the U.S. government to block Chinese hackers, I’ll happily choose a democratic government over a viciously authoritarian one.

Civil libertarians have thoughtful reasons to worry about expensive surveillance, but when the potential harms from the U.S and Chinese governments are compared, I think it’s clear we have less to worry about from the U.S. Congress’s spying practices in the proposed cybersecurity bill, The Cyber Intelligence Sharing and Protection Act (CISPA).

Sponsors of CISPA argue that greater information sharing is necessary to combat the ever-sophisticated threat of foreign hackers, and citizens must choose between fewer civil liberties and greater personal security. Hackers, especially the Chinese, often infiltrate computer systems by duping gullible users into downloading malicious software from their social networks and email providers. For the sake of argument, let’s assume CISPA will aid the U.S government in combating foreign hackers and weigh the harms.

Harms By U.S. Surveillance

The contentious CISPA bill grants telecommunication and Internet companies immunity from sharing users’ private information with federal agencies for the purposes of counter cyber-attacks. However, digital consumer watch-dog group Electronic Frontier Foundation warns it is “written so broadly that it allows companies to hand over large swaths of personal information to the government with no judicial oversight—effectively creating a ‘cybersecurity’ loophole in all existing privacy laws.”

So, let’s assume the worst-case scenario of an American government that constantly spies on citizens with little oversight. What happens? Washington University Law Professor, Neil Richards, suggests two concrete harms.

First, self-censorship increases. Citizens fearful of eavesdropping agents refuse to criticize their own government. While there is some experimental evidence from the University of Tennessee that monitored participants are less likely to discuss incriminating topics, the United States has vastly expanded its spying apparatus and there’s no shortage of government critics.

Second, corrupt agencies can blackmail potential whistleblowers. “Information collected surreptitiously can be used for other purposes, whether blackmail or the discrediting of opponents by revealing embarrassing secrets,” writes Richards. For instance, the Federal Food and Drug Administration spied on scientists who were critical of dangerous medical devices approved by the agency. No shocker, these scientists are no longer employed by the FDA.

Targeted whistleblower spying is a serious concern, but there’s no indication that CISPA would prevent corrupt agencies from breaking the law anyways. The military already has broad powers to eavesdrop on citizens (or automatically collect volumes of data) largely without a warrant.

Harms By Foreign Government Hacking

Foreign governments, especially the Chinese, have aggressively expanded their hacking capabilities against large U.S. multinationals, Internet service providers, and media outlets, as revealed in a new 60-page report by security firm, Mandiant. “Mandiant has watched the group as it has stolen technology blueprints, manufacturing processes, clinical trial results, pricing documents, negotiation strategies and other proprietary information from more than 100 of its clients, mostly in the United States,” reported the The New York Times.

Foreign attacks represent a very real and grave threat to the American economy and its citizens.

First, foreign hackers have stolen valuable military and nuclear secrets. In 2000, the Chinese government reportedly hacked into the Los Alamos labs and made off with sensitive nuclear weapons research.

Second, they can compromise national infrastructure. Two years ago, hackers traced back to Russian Internet addresses caused a pump to fail at an Illinois treatment plant.

Third, they steal trade secrets and disrupt commerce. One high-level Chinese infiltration coincided with Coca-Cola’s failed acquisition of the China Huiyuan Juice Group. Hackers were “busy rummaging through their computers in an apparent effort to learn more about Coca-Cola’s negotiation strategy,” according to Mandiant.

I’m Not So Afraid Of CISPA

Supporting CISPA isn’t about giving up rights; it’s about deciding which rights are more threatened. I wish we lived in a world where I didn’t have to choose. But the likely concrete harms from government surveillance, self-censorship and whistleblower blackmail, seem far less scary to me than stolen nuclear secrets, destabilized vital infrastructure, and disrupted commerce.

If I have to choose who is spying on me, I’ll choose a democracy any day of the week.

Article courtesy of TechCrunch

Bradley Manning Pleads Guilty For Supplying WikiLeaks, Says Newspapers Ignored Calls

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Private First Class Bradley Manning has pleaded guilty to leaking classified government documents to WikiLeaks. Reading from a 35-page statement, Manning said he leaked diplomatic cables to “spark a domestic debate as to the role of the military and foreign policy in general,” but denies aiding the enemy. Perhaps most revealing, Manning said that he first attempted to go to media outlets, such as The New York Times and The Washington Post, but his calls were rerouted to voicemail.

The soldier, who has been held in detention for over 1,000 days, has become an icon of open information and civil liberties. Manning was nominated for a Nobel Peace Prize after being widely credited for helping to spark the Arab Spring of 2010. Leaked documents corroborated long-held suspicions of Tunisia’s corrupt government, inciting the citizens to overthrow their leader and inspire similar revolutions throughout the Middle East.

While Manning’s lengthy detainment and bouts of solitary confinement for up to 23 hours a day have been harshly criticized, a court found that he “has not been denied a speedy trial despite his lengthy pretrial confinement.” President Obama himself once explained that “he broke the law” in an implicit agreement with Manning’s treatment.

Manning, who pleaded guilty to 10 lesser charges of misusing classified information, faces a maximum of 20 years in prison.

Article courtesy of TechCrunch

Amazon Inks A+E Networks Content Licensing Deal To Beef Up Prime Instant Video Service: Now Showing 33,000+ Movies, TV Episodes

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Amazon has inked another content licensing deal to beef up its Prime Instant Video streaming and download service for members of its pay monthly Prime service. The deal is with A+E Networks and means Amazon Prime members will be able to access prior seasons of “popular series” from the A&E, bio, HISTORY and Lifetime channels — including Pawn Stars, Storage Wars and Dance Moms.

The ecommerce behemoth said it plans to continue to beef up the Prime Instant Video service by adding more content, noting that it has more than doubled the content offering in a year. Back in August Amazon added ESPN’s 30 for 30 series – and at that time said the total number of movies and TV episodes available via Prime Instant Video was 22,000. That figure has now risen to more than 33,000.

Prime Instant Video content can be streamed on Amazon’s Kindle Fire HD tablet — or any of the “hundreds of compatible devices” also supported, including Apple’s iPad, iPhone, iPod touch, Roku, Xbox 360, PlayStation 3, and the Wii U.

Amazon’s release follows below:

Previous Seasons of Popular Shows from A&E, bio, HISTORY and Lifetime now available on Prime Instant Video — all Prime Instant Videos can be viewed by Prime members on Kindle Fire and hundreds of other connected devices

SEATTLE–(BUSINESS WIRE)–(NASDAQ: AMZN)—Amazon.com, Inc. today announced a content licensing agreement with A+E Networks to add prior seasons of popular series from A&E, bio, HISTORY and Lifetime to the Prime Instant Video service. Prime Instant Video now features more than 33,000 movies and TV episodes for Amazon Prime members to stream instantly, at no additional cost, on Kindle Fire HD or any of the hundreds of compatible Amazon Instant Video devices, including iPad, iPhone, iPod touch, Roku, Xbox 360, PlayStation 3, and the Wii U. To start watching Prime Instant Video, visit www.amazon.com/PIV.

“In a year we have more than doubled the Prime Instant Video selection for our Prime members,” said Brad Beale, Director of Digital Video Content Acquisition for Amazon. “We remain focused on adding TV episodes and movies to Prime Instant Video that we think our customers will enjoy. A+E Networks has some of the most popular shows on television and we know our customers will love streaming the A+E content with Prime Instant Video.”

The deal with A+E Networks will bring Prime customers more TV episodes from some of their highest rated television programming including Pawn Stars, Storage Wars and Dance Moms, which are also available for purchase through Amazon Instant Video.

About Amazon Instant Video

Amazon Instant Video is a digital video streaming and download service that offers Amazon customers the ability to rent, purchase or subscribe to a huge catalog of videos. Customers can choose from more than 145,000 titles to purchase or rent and content ranges from new release movies to classic favorites, major television shows, entire seasons, or even day after air TV. Prime Instant Video is Amazon’s video subscription offer—it includes more than 33,000 movies and TV episodes selected from the full assortment available at Amazon Instant Video. This subscription offer allows US Prime customers to stream as many titles from Prime Instant Video as they like, at no additional cost.

About Prime

Amazon Prime is an annual membership program for $79 a year that offers customers unlimited Free Two-Day Shipping on millions of items including books, home and garden products, electronics, video games, clothing, and much more. Amazon Prime members also get access to unlimited instant streaming of thousands of movies and TV episodes and access to hundreds of thousands of books to borrow for free, as frequently as a book a month, with no due dates from a Kindle device. Customers who receive free Prime shipping benefits through our Amazon Student or Amazon Mom programs can upgrade to an annual paid membership to receive Amazon Prime’s digital benefits.

About A+E Networks™

A+E Networks is an award-winning global media content company offering consumers a diverse communications environment ranging from television networks to websites to DVDs to gaming and educational software. A+E Networks is comprised of A&E®, HISTORY®, HISTORY en Espaňol™, Military HISTORY®, H2™, Lifetime®, LMN™, LRW™, bio®, Crime & Investigation Network®, A&E IndieFilms®, A+E Networks International™, A+E Networks Digital™ and A+E Networks Consumer Products™. A+E Networks channels and branded programming reach more than 300 million households in over 150 countries. A+E Networks is a joint venture of Disney-ABC Television and Hearst Corporation.

Article courtesy of TechCrunch

Conversations With Whales: The eRepublik 2012 Summit

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Editor’s note: Tadhg Kelly is a game designer with 20 years experience. He is the creator of leading game design blog What Games Are, and consults for many companies on game design and development. You can follow him on Twitter here.

Last weekend I partied in Romania. I had been invited there by a game developer, eRepublik, to attend an event celebrating the fifth anniversary of their game (also called eRepublik). eRepublik is one of my favourite consulting clients, so I was happy to be invited to participate in the festivities in downtown Bucharest and see what they had been up to.

But when I say “party” I don’t mean just visit with the team and go out for a few drinks while breathing in a whole lot of second-hand smoke (in Romania everybody chain smokes, restaurants still have smoking sections, and bars are free reign). Game conventions are not a new thing. Whether at a Blizzcon or a Eurogamer Expo, gamers from across the world like to meet up and share their passions. The eRepublik event was not a convention, though. It was a summit.

The Game

First, some background. Though slightly older than the normal use of the term (especially with reference to Facebook games), eRepublik is essentially a social roleplaying game. It runs in a browser with static graphics, tables and retention-driven mechanics. Evolutionarily speaking, it sits somewhere between games like Planetarion and Urban Dead, and more modern Facebook roleplaying games like Crime City.

It is also more focused on participatory play than, say, Mafia Wars. Both developers and players readily admit that eRepublik can be pretty boring if played alone, and say that its real secret lies in IRC. There are dozens of public and private channels there where players gather to plot and discuss strategy, and this is where the value lies. If new players can find those channels, or if an existing player brings newbies into the fold, the game comes alive.

This tallies with the gameplay. Players are members of virtual countries engaging in industry, politics and war with one another across the world stage. The fantasy of the game is sometimes tied up in nationalistic passions (especially in Eastern Europe, where the game is most popular), and players from various countries have engaged in devious behaviour in the past in this vein. They can only do this by virtue of being socially connected and able to play together.

A Gathering Of Whales

The event was grandly called the “eRepublik International Summit 2012″ because it was mainly about bringing that player community together, in meat space, to discuss the game and socialise. It also had a sense of theatre. The invitations were dressed up as a meeting of military and political leaders from all around the world. And the main session happened in a grand hotel ballroom replete with a UN Security Council style table (see photo), and name cards showing player usernames like Han Solo, Sunsetter and Peach. Many players and developers even arrived in suit-and-tie.

Some players had travelled a great distance on their own dime to be there. One example was a user named Oblige, who had travelled from upstate New York (with his girlfriend) on short notice to take part. Oblige is a very active player in the eRepublik universe, one of comparatively few from the United States. He’s been playing the game a long time, and considers it an essential part of his life. He is also what the social games industry would call a “whale.”

Social games operate on an economic model in which 95 percent of people who play will not pay, so all revenue comes from the remaining 5 percent. That 5 percent tends to follow a power-law curve. Most of them will spend maybe $10, some will spend $20, some $50 and so on. A whale is generally thought to be a player who spends more than $100, but $100 is actually on the low side. In eRepublik (and many other social games like CSR Racing, Clash of Clans, FarmVille etc.), some whales have spent over $10,000. They are the true fans, vital to the game’s success.

Player Passions

So the summit wasn’t the usual games convention because many of the players who had attended (350, I was later told) were whales. It was more like clan-gathering meets investor-conference. In eRepublik’s case this sense of a clan is compounded by the fact that around 40 percent of the game’s developers were once players of the game. Even the studio head, Mihaly Adamut, started his involvement with the game as a player.

Past the introductions, socialising the night before and tours of the studio, the main focus of the summit was to talk about the game. eRepublik has gone through several major pivots over the course of its lifetime. It started as a political game, but has slowly become more about military combat. As often as not, the game’s whales have liked or disliked those changes, most notoriously when they rejected a whole new expansion of the game (called Rising) en masse. The studio has tried hard to listen to their concerns ever since.

At the summit, those concerns were many. Some wanted to know the exact details of how a new combat engine was going to work. Others wanted the economy fixed to balance production so that it might become useful. Some of the more political players wanted to see the game move away from war and back to diplomacy, and at least one (Sunsetter) called for the game to get back to its roots as a multiplayer experience. She felt that it had become too individualistic.

This was a theme that I picked up on when talking with George Lemnaru on the day after the summit. George is the creator of eRepublik (now departed to work on a new project), and a legend in the community as a result. He thinks that the game’s politics have gone by the wayside in favour of the military aspects and wishes he’d managed to solve that problem. However he is still very happy with what he managed to create overall. When I asked him what it felt like to be a hero to this community, he smiled and said it was a strange feeling.

Conversation

The word that is perhaps most important to conveying this experience is “conversation.” Although eRepublik is older than most social games, in some ways it’s a proto-example of what I describe as “generation-two social.” The game doesn’t nag players to come back every day, isn’t preying on their social connections purely for user acquisition or lead them by the nose to click, play and spend. Instead it is focused on providing community value, and the studio largely trusts that the money will work itself out (with a few tweaks).

There are reasons for players to gather and help each other, to collaborate on common goals and breed social ties. This has led to a complex culture forming around the game, an emergent universe whose direction is rarely predictable. It has also led to a player community that is sensitive to change, but not reactionary: They want to see the game improve, get better, find ways to attract new users and expand just as much as the developers do.

That conversation is the value that whales seek. While some social studios have treated their whales much as Vegas-style high-rollers, whales are rarely spending just for their own personal aggrandisement. At the summit, Oblige expressed it best by saying that often they do so “to avoid letting their team down” in battles or activities against other nations. To be a whale is to be a leader, a participant and a clan member. It’s the social investment that matters, not the perks.

Players in any game often want to connect, to feel that social value and be able to self-express within a community of peers. In that conversation model the line often blurs between developer and player (as it has for eRepublik) and the resulting dynamic is hard to express. The game becomes something larger than any of its individual contributors, a synergistic experience which is not often apparent at face value. That conversation is the future of games.

Lessons

You can’t really afford to keep your whales at bay in a free-to-play world, to have an adversarial relationship with your players or act as though your mission in life is to squeeze them for money like a casino. That short-term attitude is what has gotten a whole lot of social game studios into trouble. Instead, think of your whales as supporters, like long-time sports fans who travel with you along this strange journey whose end neither of you fully understands. This has certainly been the experience for eRepublik’s makers and players.

Although some might argue that the game is doomed to a small niche, and will likely never scale, the loyalty of its active users cannot be ignored. When you have something as technologically basic as a browser game that manages to draw players from half way around the world to an event to talk about it, you are doing something very right. For half a decade, this apparently little game has managed to sustain two offices (the one in Bucharest and another in Madrid) and I see no reason why it couldn’t last another five years, or even beyond.

There are lessons there that all of us could learn.

Article courtesy of TechCrunch

Iraq Veterans Launch RallyPoint: A LinkedIn For The Military (And Life After)

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In spite of the commitment the men and women of the U.S. Armed Forces have made to their country, and the lip service paid to veterans and current service men and women during elections season, the state of veteran affairs in the U.S. still leaves much to be desired. As Semil pointed out in a post this weekend, when it comes to re-entering the workforce and post-military training, veterans don’t always find equal opportunity.

According to The Bureau of Labor Statistics, while the unemployment rate among U.S. veterans has dropped to 8.3 percent, it still sits above the national average, and for younger vets, the rate is even higher. Taking up the cause of their fellow service men and women looking for a better way to find employment after life in the armed forces, two Iraq War veterans, Yinon Weiss and Aaron Kletzing, have launched RallyPoint — an online professional network that aims to empower American veterans to take greater control over their careers — both inside and outside the service.

Weiss and Kletzing first met in Iraq some years ago and were more recently reunited at Harvard Business School, where they came up with the idea of creating a “LinkedIn for veterans.” While LinkedIn has transformed online professional networking and recruiting in the private sector, Weiss says, the penetration among veterans is far lower.

The reason is simple: Just as networking is increasingly moving from general, online networking channels like LinkedIn to those dedicated to serving particular verticals and the needs of particular industries, Weiss says that veterans tend to prefer a military-only community for networking. [See our recent coverage of Konekt.me for yet another example of how vertical, dedicated networks are on the rise.]

Veterans would rather spend their time in a community that caters to their specific needs and connects them with information and resources specific to their experience in the armed forces. Not only that, but while the military outpaces most as a training ground (for building discipline, etc.), that training generally focuses on life in service — not that which comes after.

So, the co-founders have developed RallyPoint into a private online network accessible only by those currently on active duty, which extends to those in the National Guard, Active Reserves, ROTC or Service Academies. In the near future, Weiss says, the team will be opening the network up to former service members, retirees, Department of Defense employees, and so on. But for not, it’s focused purely on those currently serving in the armed forces.

RallyPoint is free for members and has no formal relationship with the military and doesn’t share its data with the military or chain of command, the co-founders said. Instead, the network gives its members the opportunity to establish their professional military identity and offers visibility into the dates at which its members might be shifting into new units and offers some transparency as to the types of positions that would be available to them.

It does all of this in a big military tree-style layout that makes it easy for its members to comb through to see where others fall in the hierarchy, discover friends, connections and leaders from all the major branches of the Armed Forces. The idea, Weiss says, is to make the interface both familiar to active service men and women and easy to use. The less friction, the better.

To that point, once approved, members can then search for potential positions by similar rank and specialization and connect with members and decision makers in their future units — with the idea being to improve their chances of getting an assignment that actually matches their skills and preferences.

Leaders can then recruit members to join their unites based on their profiles and, once members are ready to transition out of the military, they can privately share that date with employers and recruiters, who can then connect with those members in private — long before the date arrives. The idea is to give members a chance to get a head start on planning their post-military careers, without sharing those dates with other members or the military.

RallyPoint’s model led it to raise $550K in seed funding earlier this year from a number of angel investors, including Jill Preotle (who is also an investor in TaskRabbit and Zipcar, among others) and more recently saw it take first place in the MassChallenge Startup Competition, which came with a prize of $100K in non-dilutive funding.

The startup has also recruited an impressive group of advisors, which includes retired general and former Chief of Staff George W. Casey, former Lieutenant General Ben Freakley, Brigadier General (Ret) Craig Nixon, as well as several other former VCs and entrepreneurs.

While RallyPoint has been able to find support at each turn, the challenge going forward — as it is for any startup playing in the networking space — will be gaining the required traction to allow it to achieve scale. Given that an estimated million-plus veterans will be returning to the workforce over the next five years and considering the ongoing struggle among young service men and women to find employment upon leaving the military, the opportunity for RallyPoint is growing.

The likelihood is that there isn’t just one key to solving unemployment among veterans, and it’s not surprising to see these solutions not emanating from within the military but from the private sector, often founded by those with years of service under their belts. Rather than a quick fix, allowing veterans to begin slowly putting the pieces together by networking and ferreting out quality employment opportunities long before they leave the service or change units — feels like it could have some appeal and be a part of the long-term solution.

As Semil noted this weekend, RallyPoint isn’t the only startup trying to become a part of the employment solution for veterans. There’s VictorySpark, a tech accelerator for military veterans, TechStars’ Patriot Boot Camp, San Francisco non-profit VetsInTech, which connects vets with tech companies in the Bay Area, Incline, a startup dedicated to training vets in web development and Fidelis — a startup developing a rigorous, “end-to-end education solution for the military to civilian career transition.” [More on Fidelis here.]

You can also check out TC’s coverage of this weekend’s VetsInTech Hackathon here.



Article courtesy of TechCrunch

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