Friday, 29 April 2016

How Sex Toy Makers Sneak Around Digital Filters

Liz Klinger first started selling sex toys four years ago, as a host of Passion Parties, in-home sales events modeled on Tupperware parties — only instead of Tupperware, vibrators and lubricant were for sale.

The experience made Klinger, whose background is in design and marketing, interested in manufacturing sex toys herself. So she rounded up some friends from companies like Google and Amazon and started building a "smart vibrator" that uses sensors to intelligently analyze what's happening during sex. Today she is the CEO of a startup called Lioness.

But if the Passion Parties made it easy to talk to women directly, selling online made it harder. Klinger, like other sex toy manufacturers, couldn't get the word out on Facebook and Instagram. They also can't raise money on Kickstarter, and struggle to sell their product on Amazon, thanks to those sites' rules about sexually explicit material.

"Vibrators — even vibrators that are positioned as a sexual health discovery product, as opposed to something that's pornographic — have a really hard time" selling online, Klinger told BuzzFeed News. Which is why she, along with a handful of other savvy sex toy slingers, decided the best way to deal with these rules is to break them.

Like many people, I first heard about Lioness via an Instagram ad — which is weird, because Facebook, which owns Instagram, doesn't allow adult companies to advertise on any of its platforms. ("Our ad policies don't allow companies to advertise adult products or services, which includes sex toys," a Facebook spokesperson told BuzzFeed News in an email.) But Klinger found a workaround.

Lioness shot a video of a woman reading positive customer feedback the company had received. The video doesn't have any sexual images, which makes it less likely to get flagged. But the real trick was having Lioness's Facebook page, which sponsored the ad, link not to the Lioness website, but to a Lioness YouTube account. The only way potential customers would even find the company's website was by clicking on an annotation inside the YouTube video.

Another sex toy startup, Comingle, used a similar workaround (before shutting down in February due to lack of funds). Comingle itself didn't buy promoted posts — but Indiegogo, where the company raised the money to build its product, is a crowdfunding platform, not a sex toy sales platform, so it can promote whatever it wants. Comingle never gave Facebook a dime, but Indiegogo was able to circulate a post that promoted the Mod, Comingle's vibrator.

Hiding behind another company with a slightly different mission is another way to make it onto Facebook. Diamond Products, the parent company of Jimmyjane — one of the biggest and best known brands in the alternative sex toy market — recently bought Sir Richard's Condoms, an all-natural contraceptives company so popular that it's sold at grocers like Whole Foods.

"The reason I acquired the company is, it's my Trojan horse," Jimmyjane President Robert Rheaume said, laughing. "I can use condoms to advertise on Facebook and other social media feeds that don't allow sexual toys."

Both Facebook's and Twitter's advertising policies have loopholes that allow contraceptives to be advertised, regardless of sexual content. Customers who click through a Sir Richard's ad to the website can easily add Jimmyjane products to their cart before checkout, he said.

For most of these companies, finding the backdoor to Facebook was effective, even if it wasn't preferable. According to Klinger, during the time the ads were up, Lioness saw a tenfold increase in sales though Indiegogo, without any press or other significant events. But, she said, "if you talk to someone in e-commerce, this is a really, really inefficient way of selling product."

Facebook's and Instagram's weren't the the only algorithms Lioness and others like it had to beat. Getting the word out on social media is important, but if you want to sell goods to a mass audience, the obvious place to turn is Amazon.com. And that option is full of obstacles for sex toy makers.

Amazon does have a "sexual wellness" category, but sellers need to get "pre-approval," which means selling 50 units of something else before they can start selling adult products. A representative from Amazon told BuzzFeed News that this policy is meant to ensure quality and customer satisfaction.

But that can be a tricky hurdle if all your company makes is vibrators. Alex Fine, CEO of Dame Products, cleared it by having 200 bumper stickers made that said, "My other car is a vibrator." They sold well — but more important, they won Dame the Amazon page it wanted.

Via Flickr: tgidenver

Even so, getting onto Amazon was just the start. The company also controls how sex toys show up in search results, to ensure that sex toys don't show up when that's not what the searcher is seeking. So, if you search "dildo" or "vibrator," sex toys are what you'll find. But if you search "Dame Eva" — the name of one of Dame's vibrators — you'll find cell phone cases emblazoned with Eva Longoria's face and albums by Dame Eva Turner.

"The reason I acquired the company is, it's my Trojan horse."

James Wang / Lioness

And there's a good reason for that — if you're shopping for a lemon squeezer, or a biography of Eva Perón, you probably don't want to be bombarded with a bunch of lemon-shaped vibrators.

But if you're a seller of sex toys, you don't want your potential customers to have to know where to look in order to find your products. Many of the search results when you just type "sex toy" into main search are from accounts selling brand-name sex toys, usually purchased wholesale, on the cheap. If they move enough product and get high enough ratings, they'll ultimately get top placement in Amazon search results, outranking the companies that actually make the toys.

To get around the rule that keeps them out of main search, some of the sex toy companies try framing their product postings in a way that makes them appear unlike sex toys — Revel Body's Robert Elenga said he would label the vibrators as sports massagers, muscle massagers, or yoga massagers, and sell them along with a water bottle. But many end up getting flagged as adult products in the end anyway.

"It's almost a full-time job just to manage your listing," Elenga told BuzzFeed News. And in fact, recently, Elenga got out of the sex toy game — sort of. Instead of selling vibrators to consumers, his new plan is to license RevelBody's vibrating motor technology to smartphone and smartwatch manufacturers, as well as other sex toy companies.

Between Facebook's terms of service, SafeSearch in browsers, and various other algorithm-driven impediments, it was just too much work to get the word out about Revel, Elenga said. "There's layers and layers of filters that block getting your content out," he said.

Soumyadip Rakshit / MysteryVibe

Minna Life is best known for the Limon, a couples vibrator, but about a year ago, it came out with kGoal, a device that's supposed to help women strengthen pelvic floor muscles. (There's a version for men that will hit markets soon.) Minna CEO Brian Krieger said the kGoal is decidedly not a sex toy, which is helping Minna grow brand recognition on platforms where it wouldn't normally be seen.

"We were definitely aware that if we broadened our purview a little bit it would strengthen our ability to argue with somebody like a Facebook," Krieger said. Indeed, kGoal launched on Kickstarter, which doesn't normally allow sex toys or other "pornographic materials." Minna Life was also able to run an advertising campaign for kGoal on Facebook for a few months before getting flagged by the site and, ultimately, deactivated — but not before scoring a distribution deal with Target.com.

Krieger isn't the only sex toy entrepreneur strengthening his brand with kegels. OhMiBod CEO Brian Dunham said his company has actually been selling kegel-exercising devices for years. But only the newest model, the "Krush," vibrates and pairs with an app. This year, it won best in show in health and wellness at the Consumer Electronics Show.

Dunham said he was denied when he first applied for entrance to CES six years ago. Now, he plans to use his company's victory there to continue pushing vibrators in spaces where they're technically not allowed. When the Krush launches in May, it will launch under a new LoveLifeToys brand, which Durham plans to promote on Facebook and other channels. "It will be a great litmus test if Facebook shuts us down," he said.

There are plenty of other ways to advertise sex toys online. Lelo uses blog posts that get shared on social media. Mysteryvibe syndicates content through a British media company called Unruly. But at the end of the day, the best way to get around content filters and terms of service might be satisfied customers, said Michael Topolovac, CEO of a sex toy company called Crave.

"If a customer says a product is great, they don't filter that out," he said, "because that's free speech."



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Do You Know What Happened In Tech News The Week Of April 25?

iPhone sales slowed, Beyoncé picked her streaming service of choice, and Facebook started broadcasting sports. Take the tech news quiz for the week of April



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The New MacBook Is A Sexy, Slim, Cable-Guzzling Monster

Probably the best-looking laptop you've laid your eyes on.

Jenny Chang / BuzzFeed / Via Apple

Apple recently introduced its second-generation MacBook.

Apple recently introduced its second-generation MacBook.

No, it's not an update to the powerful-yet-portable MacBook Pro, or the highly-competent, compact MacBook Air. The latest Apple lappy, fitting to its ~minimalist aesthetic~, is just called "MacBook."

For the uninitiated, the MacBook is probably the most attractive laptop ever. But it's for a very specific kind of computer-er (and a very particular kind of budget).

Aside from a new rose gold model (which is really just PINK), the updated 2016 MacBook is superficially the same as last year's, but there are a few key improvements to its speed and battery life. Apple loaned me a review unit to take its new suped-up MacBook to the limit.

So, should you buy this laptop? Should you buy a laptop at all?? Read on.

Will M. / Nicole Nguyen / BuzzFeed


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Thursday, 28 April 2016

Amazon Is Reporting Profits For A Change, And Investors Love It

Jens Meyer / AP

Amazon sold a lot of stuff in the first three months of this year, more than analysts expected. But Amazon always sells a lot of stuff. What's changing is how much profit it chooses to make while doing so.

The company reported a $513 million profit for the quarter, up from a $57 million loss in the same period last year. It was almost double what analysts had expected, and was close to the $596 million the company earned in all of 2015. In 2014 it made a $241 million loss.

The unexpectedly large profit came from revenues of $29.1 billion, up 28% from the first quarter last year and higher than the $28 billion predicted by analysts polled by Bloomberg.

And not only is the company making big profits — this time around, investors are happy with it for doing so, with Amazon stock rising over 12% in after-hours trading. When the online retailer reported a record profit in its previous quarter, its stock crashed.

The stock may be rallying thanks to aggressive projections for sales growth that Amazon released alongside results on Thursday. It expects revenues between $28 billion and $30.5 billion, while analysts expected second quarter revenues at just over $28 billion.

Amazon/BuzzFeed

Amazon Web Services, its cloud computing business, is still growing like crazy. It had revenues of $2.6 billion, up 64% from a year ago, and above the $2.5 billion that analysts forecasted. The division's operating income of $604 million was over triple the $195 million it earned a year ago. Amazon's total operating income, which is a slightly different measure from net income or profits, was $1.1 billion.



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In His First "Founder's Letter," Sundar Pichai Charts Google's Future

Vivek Singh for BuzzFeed News

In his inaugural "founder's letter" — Google's version of a State of the Union — newly minted CEO Sundar Pichai laid out his vision of the company's future, stressing that change is on the way, and Google wants to be all-in on the artificial intelligence revolution when it arrives.

"The next big step will be for the very concept of the "device" to fade away," Pichai writes. "Over time, the computer itself — whatever its form factor — will be an intelligent assistant helping you through your day. We will move from mobile first to an AI first world. [Artificial intelligence] can help us in everything from accomplishing our daily tasks and travels, to eventually tackling even bigger challenges like climate change and cancer diagnosis."

Pichai's letter also serves as a brief highlight reel of Google's past year; Pichai references Google's AlphaGo artificial intelligence beating a world champion at the strategy game, Google Photos (which relies heavily on Google's AI strengths) reaching 100 million users in less than a year, and having over 1.4 billion active Android devices in the market.

This is Pichai's first time penning Google's annual "founder's letter." For every year since its formation, that's been handled by the company's co-founders, Larry Page and Sergey Brin. However, when Google restructured last year into Alphabet and Google, they handed over the Google reins and role of CEO to Sundar Pichai.

"Since the majority of our big bets are in Google, I wanted to give him most of the bully-pulpit here to reflect on Google's accomplishments and share his vision," writes Page in a brief foreword to Pichai's letter. He goes on to write that he, Brin, and Pichai will likely all make these announcements moving forward.

In addition to mapping where Google is going, and what it's accomplished lately, Pichai also included the high-minded, inspirational rhetoric expected from tech CEOs in 2016. "For us, technology is not about the devices or the products we build. Those aren't the end-goals. Technology is a democratizing force, empowering people through information," writes Pichai. "Google is an information company. It was when it was founded, and it is today. And it's what people do with that information that amazes and inspires me every day."

You can read the full founder's letter here.



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This Startup Wants To Beat Whole Foods At Online Delivery

Thrive Market

It's been a rough few months for tech-enabled delivery startups. Just ask Instacart, which recently cut pay for contract drivers in several cities and raised its prices. Or DoorDash, which last month raised money at a reportedly lowered valuation. Or SpoonRocket, which shut down its meal delivery service in March. Or any of the many venture-backed startups — Blue Apron, Gobble, Hello Fresh, Munchery, Plated, Good Eggs — that are facing an increasingly crowded market for grocery, pre-cooked-meal, and meal-kit delivery.

Thrive Market, an organic food and beauty product startup in Los Angeles, thinks it's found a way in by doing key things differently compared to some of its competitors.

First off, it doesn't touch fresh food. It also doesn't rely on independent contractors to bring goods to your door within hours, the way Postmates, Instacart, DoorDash, and GrubHub fully or partly do.

Thrive describes itself as a mix of Whole Foods and Costco, a business that taps into the customer demand for organic food and lifestyle products that has also propelled startups like Jessica Alba's the Honest Company — products that are normally associated with higher prices.

A $60 annual membership (that's the Costco element) gives you access to Thrive's online marketplace of 4,000 non-perishable food items, baking ingredients, bath and beauty products, nutritional supplements, and home supplies, which are marketed as gluten-free, paleo-friendly, organic, and so on, just like at Whole Foods. But executives say Thrive's products cost around 25% to 50% less because the company buys them in bulk at discounted prices, and doesn't need to foot the bills for brick-and-mortar retail stores.

"Only the top 3–5% of consumers can afford that premium," Thrive Co-CEO Nicholas Green said of Whole Foods. "We're focused on the 90% to 95% of American families. They're not thinking about getting fresh food delivered — they're thinking about shopping on a budget for the healthiest products they can."

CEOs Gunnar Lovelace and Nicholas Green

Thrive Market

If Thrive's leaders are to be believed, the company has been doing well since it was founded in 2013 and launched its service in November 2014 — and its self-reported figures stand out against the layoffs and other gloomy developments recently making rounds in the delivery world. Thrive's revenue last year reached $50 million; monthly sales now exceed $10 million and are reportedly growing at a "double-digit" rate. There are more than 200,000 paying members, 30,000 of whom joined in March and 28,000 in February, the company told BuzzFeed News. There were also 432,000 new registered users in March. (People who register for free can browse the site and get a discount off their first purchase.)

The company says it has raised $58 million from investors that include Demi Moore and John Legend. Thrive isn't profitable, however, and is at the moment more focused on bringing on as many new customers as possible. It makes shipping free for orders over $50 — the CEOs say the cost is absorbed into the cost of membership — and rolled out iOS and Android apps this spring.

Still, the CEOs say, Thrive works because it has annual subscriptions, which help the company predict how much revenue will be coming in, and with a greater degree of reliability than occasional or one-time purchases. And because Thrive's inventory — grains, pasta, nuts, cookies, almond butter, soap, vitamins — can be stored for weeks without going bad, the company can waste less and make better predictions about what it will need. Perishability is a complex logistical problem that has challenged organic food supplier Good Eggs, which last year closed its hubs outside San Francisco and laid off nearly 140 employees.

So Thrive doesn't need to rush to get products out before they spoil — and its products aren't things that people typically need immediately, either, but rather every few weeks or months. Last fall, it introduced its own, private-label organic tomato sauce and coconut oil.

"A lot of people want to buy their avocados and bananas in person and see if the items are ripe or fresh," Green said. "The nice thing about non-perishable (items) is they're stable, you don't need to touch them to make a decision. The only reason they're sold in a grocery store is it's a vestige of a time before grocery stores."

Thrive Market

All this stuff is stored in a 40,000-square-foot warehouse in Los Angeles, and a newer 375,000-square-foot, ex-General Electric plant in Batesville, Indiana. A total of about 400 workers — W-2 employees with benefits — receive inventory, fill orders, and ship them off via UPS, which delivers within a few days. Co-CEO Gunnar Lovelace and Green say that for the kind of work their employees do, using independent contractors didn't make sense.

Before Thrive, Lovelace started and sold two software companies. He grew up with a single mother who "struggled to make healthy choices," he said, and remarried a man who ran a food co-op out of an organic farm in Ojai, California. Learning about that system would later drive him to get into the organic-goods business and try to make it affordable: For every paying member who signs up, Thrive gives away a membership to a low-income family, and in January, it started allowing shoppers to donate store credit to other Thrive shoppers in need. (Customers have chipped in $156,000 so far.) Green, who'd sold an education startup he'd started in college, had initially wanted to invest in Thrive, but decided to join Lovelace as a co-founder.

Thrive's success so far is due to the fact that it's tapped into a market beyond wealthy coastal cities — "people that Whole Foods just isn't even close to and won't be, at least not for the foreseeable future," as Greycroft Partners co-founder and partner Dana Settle, an investor in Thrive, put it to BuzzFeed News. A spokesperson for Whole Foods did not return a request for comment.

Greycroft also invests in on-demand meal startup Munchery and meal-kit subscription service Plated. But Settle doesn't necessarily see them as competing with each other.

"The market for food is just enormous," she said. "There's opportunity and room for multiple players that do different things and appeal to different consumers, and sometimes the same consumers for different reasons."

Thrive Market




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Apple’s Newest App Tool Helps You Keep Tabs On Your Health

Dolgachov / Getty Images

Over the last two years, Apple has sought to turn the iPhone and the Apple Watch into health-tracking devices through which people track and record some of their most important — and intimate — data. Early Thursday, Apple officially launched CareKit, a new app-building tool meant to help people more easily connect with health care providers even more frequently.

Announced at Apple's iPhone event last month, CareKit is an open-source framework, a sort of scaffolding for app functions that let patients track and measure their symptoms, check off to-do lists assigned by their doctors, and send their health data to clinicians. Developers can use the tool to create apps from scratch or add new features to existing apps.

A few companies were given a CareKit head-start with Apple's blessing and are incorporating elements of the tool into app updates released today. The programs intend to help people manage diabetes (One Drop), track the effects of antidepressant medications (Start), and monitor pregnancies and newborn health and development (Glow Nurture and Baby). The University of Rochester also has one dedicated to Parkinson's disease, and still others are in the works by institutions like Texas Medical Center, Cleveland Clinic, and Beth Israel Deaconess Medical Center.

Glow, a startup that makes women's health apps, used CareKit to enable Nurture and Baby users to easily email PDF updates about their prenatal health and babies' growth to gynecologists and pediatricians. "CareKit can help accelerate the ability to harness information and put it in the hands of consumers and ultimately relay that back to their health care providers," Jennifer Tye, Glow's vice president of marketing and partnerships, told BuzzFeed News.

One Drop

Apple

And Start lets people record their physical and mental reactions to antidepressants, determine whether they working over time, and email progress reports to doctors. With the new CareKit functions, they can also do things like check off that they've taken their daily dose and receive report submission reminders. Start was launched last year by Iodine, a startup that's been called the "Yelp of medicine" for its searchable library of crowd-reported drug side effects.

Although CareKit's PDF reports don't seamlessly sync with hospitals' electronic health records, they do handle the important task of presenting crucial information in an easy-to-read-way, said Iodine CEO Thomas Goetz. "It solves this problem we've been wrestling with … as we've been working with clinical partners: 'How do we get our data into your system?'" he told BuzzFeed News. "CareKit makes that process very intuitive for the user."

Apple isn't the only tech company with an expanding presence in the increasingly digital world of health and wellness. This month, developers funded by the Robert Wood Johnson Foundation released ResearchStack, an Android app framework that allows people to remotely participate in clinical studies. It is the Android equivalent of ResearchKit, the iOS app framework released in March 2015.

Google said last fall that there are 1.4 billion active Android devices worldwide. But Apple also has more than 1 billion active devices to brag about, and unlike Google, it controls the manufacturing of all its products.

So any extra reason for people to open their iPhones is a win in Apple's war for customer loyalty — and CareKit is yet another reason for patients to keep coming back to iOS. During an earnings call Tuesday, CEO Tim Cook mentioned that the company is "very excited about the ways iPhone and Apple Watch are helping people lead healthier lives." "We believe there's great promise here for the future," he added, "and we are very interested in where this can take us."

Apple Chief Operating Officer Jeff Williams announcing CareKit.

Justin Sullivan / Getty Images



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Wednesday, 27 April 2016

Mark Zuckerberg Addresses Sharing Decline Reports As Facebook Crushes Earnings

Facebook

In recent weeks, reports have emerged declaring that 'original sharing' on Facebook is down significantly. This sharing — the type where you post your own photos, videos or text instead of simply hitting the 'share' button — is critical to the vibrancy of Facebook. Less original sharing equals more mass-appeal content for Facebook's feeds, meaning we see more news reports and made-for-social memes taking the place of the heartfelt life updates and goofy photos that make Facebook fun.

It is no wonder then that Facebook CEO Mark Zuckerberg received a question about sharing during Wednesday's earnings call. His answer, while filled with positive news, did not dispute the reports that original sharing is down, a sign we're likely to keep hearing about this issue for some time to come.

"Overall sharing is up across Facebook and people are spending more time on Facebook and the whole family of apps," Zuckerberg said. "That is not just the case for the aggregate of the growing community, but it's actually also the case on a per-person basis as well, in terms of people sharing more and spending more time individually."

Zuckerberg didn't specify the type of sharing that went up, leaving the door open for the increase in overall sharing to be fueled by more simple clicks of the 'share' button.

That said, Facebook isn't giving up on original sharing, or even acknowledging its decline. Zuckerberg simply spoke of other Facebook products where the sharing may have migrated to.

"Facebook gives you the ability to share with all of your friends and publicly if you want, and groups, but we are also investing in things like Messenger and WhatsApp," Zuckerberg said. "A lot of people want to share increasingly messages privately one-on-one or with very small groups."

The original sharing problem seems to be a small one for Facebook at the moment. The company delivered an impressive earnings report for the first quarter of 2016, bringing in revenue of $5.38 billion on the quarter, beating estimates of $5.25. And its 77 cents profit per share beat estimates of 62 cents.

Zuckerberg, for one, was pleased with the results, telling analysts: "We started 2016 off well."



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Facebook Quietly Live-Streamed Its First Professional Sports Broadcast Over The Weekend


As Alex Morgan prepared to take the field Saturday for her team's National Women's Soccer League season opener, the Orlando Pride forward posted an update to her Facebook page: "Orlando Pride season opener! First half action live."

Accompanying the text was a broadcast of the game, beamed through Facebook with an assist from the platform's Live API — complete with professionally shot video, cuts and graphics. It was everything you'd expect to see on TV, except this time it was on Facebook.

The broadcast was Facebook's first live stream of a professional sports event. It reached an audience of 273,249 unique viewers in the first half, according to Facebook. A second separate live video of the game's second half reached 348,944 unique viewers, also according to Facebook. The game reached an estimated 554,000 unique viewers in all, according to Cycle the media company that orchestrated the stream.

In comparison, a National Hockey League playoff game between the Nashville Predators and The Anaheim Ducks pulled in 413,000 average viewers Saturday, according to Nielsen. Nielsen's average viewer number is calculated differently from Facebook's unique viewers though, so the comparison isn't completely analogous.

Cycle CEO Jason Stein told BuzzFeed News he expects more live sports broadcasts on Facebook to follow the Orlando Pride's lead. "If you can broadcast sports live on Facebook and reach a significant audience that's bigger than most sporting events on TV, you can expect more people to migrate to this distribution tool," Stein said. "Most sporting events are buried within a thousand different channels on cable. With Facebook Live, you're able to open up an app and see live sports on your phone, delivered right to you."

Cycle, which works with Morgan to develop social content, arranged to stream the game live on her Facebook page via an agreement with the National Women's Soccer League and the Orlando Pride. The league, which doesn't have a TV partner, also broadcasted the game to YouTube. But the game reached far less viewers there: a bit over 76,000, according to YouTube.

Facebook is running an experiment where it's paying athletes, celebrities and media companies to stream live. Morgan is part of that experiment, according to Cycle, which would not disclose the financials behind the Orlando Pride season opener deal.



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FBI Will Not Reveal The San Bernardino iPhone Hack

Carlos Barria / Reuters

The FBI will not share the secret technique it purchased for at least $1.4 million to crack the San Bernardino iPhone, a top law enforcement official said in a statement Wednesday.

The agency's decision leaves Apple and the public with little knowledge of the vulnerability FBI exploited to penetrate the device, an iPhone 5c used by the man behind the San Bernardino terrorist attack last year. More recently, the iPhone has been at the center of a controversial legal battle between the Justice Department and Apple over government access to encrypted communications.

Days before a scheduled courtroom showdown last month, an unidentified outside party showed the FBI how to access the device. The method, purchased by the agency, proved successful, prompting the Justice Department to abandon its case against Apple. The identity of the outside party and the details of the method used to crack the device became subjects of intense curiosity, as the Justice Department refused repeatedly to offer specifics.

Privacy experts, however, pointed to the government's internal policy on disclosing cyber vulnerabilities. Known as an equities review, the policy was designed to balance the interests of law enforcement and intelligence agencies in keeping hacks secret, against the public interest case for disclosing them — the patching of security vulnerabilities and the shielding of consumers from malicious intruders and manipulation.

Even as legal and tech experts such as Christopher Soghoian of the ACLU, Andrew Crocker of the Electronic Frontier Foundation, and Alan Butler of the Electronic Privacy Information Center argue that the equities review process lacks accountability and transparency, the government's stated policy favors disclosure. But the FBI says it knows so little about the technical details of the San Bernardino method, it can't submit the vulnerability to the equities review.

"The F.B.I. purchased the method from an outside party so that we could unlock the San Bernardino device," said Amy Hess, the FBI's executive assistant director for science and technology.

"We did not, however, purchase the rights to technical details about how the method functions, or the nature and extent of any vulnerability upon which the method may rely in order to operate. As a result, currently we do not have enough technical information about any vulnerability that would permit any meaningful review" she said.

Apple declined to comment.



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Reports: Body Found At Apple Headquarters

Authorities are reportedly investigating after a body was found in a conference room at Apple's headquarters in Cupertino.

A body was found Wednesday at the Apple headquarters in California, several media outlets reported.

A body was found Wednesday at the Apple headquarters in California, several media outlets reported.

Apple headquarters in Cupertino.

Marcio Jose Sanchez / AP

It is unclear if the deceased person is an Apple employee.

Pictures from the scene showed county sheriff vehicles parked at the Cupertino campus.

Apple and the Santa Clara County Sheriff's Office did not immediately respond to BuzzFeed News' request for comment.

This is a developing story. Check back later for updates and follow BuzzFeed News on Twitter.


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Tuesday, 26 April 2016

As Social Shifts To Video, Content Creators Win Power And Dollars

In December, a pack of widely followed Vine stars made their way to Twitter's San Francisco headquarters for an unprecedented meeting. These stars, who helped propel Vine to popularity by creating a unique brand of entertainment to fit its short, looping format, wanted to finally get paid for their work. Other social networks had plans in the works to pay content creators, and these Viners wanted in too. It was a bit of a watershed moment: After years of the platform acting as supreme ruler, the leverage was beginning to shift.

In the meeting, the stars sent a message to Twitter: Facebook, Instagram, and Snapchat all want our videos too; cut us a check if you want to keep us. "We made Vine a cultural phenomena," one of the Vine stars in attendance told BuzzFeed News. "We would like finally make a living off of the platform."

The meeting displayed something new that major social companies are now starting to reckon with: Very few people, relatively speaking, are capable of regularly creating compelling videos that others want to watch. And as social platforms look to saturate their feeds with video — live or otherwise — rather than just pictures and text, they're essentially competing for the same limited set of good videos. So those who create the ​quality​ stuff can demand payment.

In recent weeks, those payments have begun flowing. Twitter and Facebook both started handing out multimillion-dollar wads of cash to bring quality video content to their platforms. Twitter announced earlier this month that it would spend millions to stream 10 NFL games during the 2016 NFL season. And Facebook is offering six-figure checks to celebrities who agree to use its live-streaming product. Periscope's CEO, in an interview, wouldn't rule out paying content creators down the road either. When those Vine stars marched into Twitter's Market Street headquarters in San Francisco demanding financial compensation for their work, it wasn't an outlier. It was the new normal.

"In video we are seeing just how hard it is to make great content people watch on a recurring basis," Josh Elman, a partner at venture capital firm Greylock Partners who has invested in the live-streaming app Meerkat, told BuzzFeed News. "Given that, the platforms are starting to compete for those hundreds or thousands of creators who can do that, rather than hoping just anyone can become a star."

The Vine stars' demand in their meeting with Twitter was similar to the demands TV content companies make during negotiations. Viacom, for example, last week threatened to remove its content (including Comedy Central and MTV) from Dish Network if the satellite provider didn't fork up more cash for the rights to air it. If Dish didn't pay, Viacom's "blackout" would make Dish's competitors more attractive to the market. Dish agreed to fee increases, and Viacom remains on the network.

Multichannel video programming distributors — Comcast, Verizon, Dish Network, DirecTV, and more — transmit programming into people's living rooms. But they pay content producers and programmers to fill the airwaves so they don't have 1,000 channels of public access town hall meetings. Sound familiar? Just substitute Twitter for Dish and Vine stars for Viacom. The social platforms don't want to fill their feeds with hours of boring video either.

In the digital world, social platforms are the content conduits to the masses, and the power relationship between them and content creators is similar. Ultimately, people care about good content, not who distributes it.

(Of course, the two are not perfectly analogous: People pay to watch cable, but they don't pay to use social platforms. And cable has effectively no user-generated content, making it completely reliant on professional creators.)

Still, as the social companies shift to video, they're going to win and lose users based on the quality of the video they're showing. So they're willing to place bets on quality video content that can draw users in even if they're not guaranteed to directly make money off these deals. Take, for example, Twitter's recent agreement with the NFL to stream a package of games, which may cost Twitter more than it makes back in advertising.

"An engagement game, that's what Twitter is doing with the NFL," Peter Stabler, senior analyst at Wells Fargo Securities, told BuzzFeed News. "They're hoping to bring back hundreds of thousands of lapsed Twitter users."

Twitter, YouTube, Facebook, and Snapchat all want the same engaging, high-quality videos that do well on their platforms. "They're competing for attention, they're competing for engagement," Stabler said.

To get that engagement, it's looking more likely that these companies will be relying on video from a limited group of gifted social talent creators (see: DJ Khaled), or professional media companies. For Facebook, the reality may be arriving sooner than anticipated. Original sharing on the platform is down significantly, according to a report in The Information, meaning people are simply hitting the "share" button instead of posting original text, photos, and videos. Less content creation across the board makes professional content operations even more valuable to the social giant.

Facebook is already paying media companies and celebrities to post video via its Live product. The company is offering around $250,000 for 20 posts per month over a three-month period, according to one source with knowledge of the arrangement. (BuzzFeed is among the group of Facebook Live paid media partners.)

Kayvon Beykpour, CEO of the Twitter-owned live-streaming app Periscope, did not rule out the possibility of paying content creators in a recent interview with BuzzFeed News. "Maybe it's something that we experiment as Periscope specifically later on," he said, while adding: "It's really important for us to make sure we're building a product that people want to use without being monetarily incentivized."

"I think you're seeing a renaissance for content creators," Athan Stephanopoulos, president of digital media company NowThis, told BuzzFeed News. "Facebook's done a good job of connecting the lines to consumers and so has Snapchat, Twitter, Instagram, and Vine. Now you've got to fill those pipes with quality content."

At Facebook's F8 developer conference this year, CEO Mark Zuckerberg said that in a decade, "video will look like as big of a shift in the way we all share and communicate as mobile has been." And though Zuckerberg is setting up a product to spark more video creation from regular folks (Live), he's likewise ensuring it will be more attractive to professionals by paying them and expanding the cameras from phone cameras to professional-grade equipment.

This power shift may not mean media companies will find an answer to their digital revenue struggles, but it's still a moment where those posting quality content are beginning to get paid by social platforms, rather than ads, for their editorial work. And that's a big deal.

"These platforms know that without strong, independent, unique voices that they have nothing," Nicholas Megalis, one widely followed Vine creator, told BuzzFeed News. "The people are the most important part of any scheme. We can move mountains."



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