Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Friday 22 June 2018
Instagram unveils new video service in challenge to YouTube

By MICHAEL LIEDTKE to one minute. Instagram
AP Technology Writer doesn't currently allow vid-
SAN FRANCISCO (AP) — eo ads, but Systrom said it
Facebook's Instagram ser- eventually will. When the
vice is loosening its restraints ads come, Instagram in-
on video in an attempt to tends to share revenue with
lure younger viewers away the videos' creators — just
from YouTube when they're as YouTube already does.
looking for something "We want to make sure they
to watch on their smart- make a living because that
phones. is the only way it works in
The expansion announced the long run," Systrom said.
Wednesday, dubbed IGTV, The ads also will help Face-
will increase Instagram's book sustain its revenue
video time limit from one growth. Total spending on
minute to 10 minutes for online video ads in the U.S.
most users. Accounts with is expected to rise from
large audiences will be nearly $18 billion this year to
able to go as long as an $27 billion in 2021, accord-
hour. ing to eMarketer.
Video will be available Lele Pons, a YouTube sensa-
through Instagram or a tion who also has amassed
new app called IGTV. The In this Tuesday, June 19, 2018, photo Kevin Systrom, CEO and co-founder of Instagram, prepares 25 million followers on Ins-
video will eventually give for Wednesday's announcement about IGTV in San Francisco. Associated Press tagram, plans to launch a
Facebook more opportuni- new cooking show on IGTV
ties to sell advertising. video. pening on YouTube, which percent of people in that in hopes of increasing her
It's the latest instance The initiative comes as par- has become the world's group now use Facebook, audience and eventually
in which Instagram has ent company Facebook most popular video outlet down from 71 percent from generating more revenue.
ripped a page from a rival's struggles to attract teens, since Google bought it for a similar Pew survey in 2014- "It's like Coca-Cola and
playbook in an effort to while also dealing with a $1.76 billion nearly 12 years 15. Pepsi," she said. "You will
preserve its status as a cool scandal that exposed its ago. YouTube now boasts That trend appears to be never know what you like
place for young people to leaky controls for protect- 1.8 billion users. one of the reasons that better unless you try both."
share and view content. In ing users' personal informa- Instagram, which Face- Facebook is "hedging its IGTV's programming for-
this case, Instagram is mim- tion. book bought for $1 billion bets" by opening Insta- mat will consist exclusively
icking Google's YouTube. Instagram CEO Kevin Sys- six years ago, now has 1 bil- gram to the longer-form of vertical video designed
Before, Facebook and Ins- trom told The Associated lion users, up from 800 mil- videos typically found on to fill the entire screen of
tagram have copied Snap- Press that he hopes IGTV lion nine months ago. YouTube, said analyst Paul smartphones — the devic-
chat — another magnet for will emerge as a hub of cre- More importantly, 72 per- Verna of the research firm es that are emerging as the
teens and young adults. ativity for relative unknowns cent of U.S. kids ranging eMarketer. main way younger people
Instagram, now nearly 8 who turn into internet sen- from 13 to 17 years old Besides giving Instagram watch video. By contrast,
years old, is moving further sations with fervent fol- use Instagram, second to another potential draw- most YouTube videos fill
from its roots as a photo- lowings among teens and YouTube at 85 percent, ing card, longer clips are only a portion of the screen
sharing service as it dives young adults. according to the Pew Re- more conducive for video unless the phone is tilted
headlong into longer-form That is what's already hap- search Center. Only 51 ads lasting from 30 seconds horizontally.q

Days after buying Time Warner, AT&T launches new TV service

By MAE ANDERSON it just bought. and broadband providers its 92 million subscribers that
AP Technology Writer The WatchTV service, a ca- as more people watch TV its internet rivals do not. The
NEW YORK (AP) — AT&T is ble-like package of more online. Competitors include Department of Justice sued
launching a new stream- than 30 TV channels deliv- Sling TV, PlayStation Vue to block the Time Warner
ing service incorporating ered over the internet, is an and AT&T's own DirecTV deal on anti-competition
television networks from example of the "skinny bun- Now. concerns, but a federal
the Time Warner company dles" coming from telecom WatchTV will be free for judge sided with AT&T.
subscribers of two unlim- WatchTV is the first example
ited wireless plans AT&T is of how AT&T plans to marry
launching. Others can get distribution and program-
WatchTV for $15 — $20 less ming from Time Warner. If it
than DirecTV Now, but with gets enough subscribers, it
just half the channels. will be able to collect valu-
Thursday's announcement able data and offer more
comes just days after AT&T personalized content —
closed its $81 billion Time and ads.
Warner deal. AT&T said it But with people paying for
needs to combine its dis- a growing number of ser-
tribution channels with vices like HBO, Hulu, Netflix
entertainment properties and DirectTV Now, stream-
to compete with internet- ing can end up being just
In this Wednesday, June 13, 2018, file photo, the logos for Time based rivals like Amazon, as expensive as cable, if
Warner and AT&T appear above alternate trading posts on the Netflix and Google, al- not more so.q
floor of the New York Stock Exchange. though the wireless carrier
Associated Press has a direct connection to