Netflix will increase subscription to $ 9.99 in May

It is reported that all of Netflix subscribers need to pay $9.99 per month if they wish to watch its on-demand contents, unless it increases subscription fee again. In May, a great amount of existing subscribers will see their subscription fee increasing from $7.99 to $ 9.99.

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In fact, Netflix new subscribers started paying $ 9.99 per month to enjoy its service since last October. In May, 2015, Netflix announced to increase subscription fee from $7.99 to $ 8.99 for new subscribers. It promised that it would extend another 2 years for the old subscribers for charging $7.99 per month.

Its promise will be due next month. Netflix old subscribers have to pay $ 9.99 per month in accordance with its new charging standard. Netflix claimed that it will send emails to the related subscribers to notify them for the price raise. It seems many of its existing subscribers forget the news concerning the price raise that made two years ago.

Many of Netflix existing subscribers will continue to use this service after the price raise. It sounds reasonable for them for pay $ 9.99 per month. But if Netflix increases the subscription feel to $ 14.99 or $ 19.99, the situation will be different.

The amount of movies that provided on Netflix is declining, however, its original contents attract its existing subscribers.

Morgan Stanley made a questionnaire survey recently ” Who makes the best original shows or movies?” It turned out Netflix won more fans than HBO did.

Evidence shows that the investments on Netflix original content work

Netflix officers wagered its future on its original shows and films. Until now, its subscribers love those original content.

The statistics provided by AllFlicks showed that Netflix’s original content get higher scores than those it import from traditional televisions. Its original content get an average marks of 3.87 ( full marks are 5). While other content were rated at 3.47 marks.

Its original documentary got the highest grade at 4.03, while its non-original documentary only got 3.58 marks.

Netflix has been increasing investments on original programmes since 2012. Its average annual increase rate reached 185.41%. By far, Netflix produced 111 original tv shows and films. In January, Ted Sarandos announced Netflix will release about 600 hours of original content this year, including 31 orginal tv shows.

CFO David Wells claimed last autumn that original content has strong impact on consumers preference in comparison with authorized content.

The latest survey showed that some of Netflix’s opinion were true. Netflix subscribers seem to be interested in original content. The well-being rating of subscribers becomes the index for Netflix’s success.

How much profit Netflix made by investing original content? Well, it is hard to say. It costs much to produce the original tv shows and films. It is possibly the reason why Netflix reduces 31.7% of its original content.

Amazon launches Pay with Amazon service to rival PayPal and Apple Pay

With the development of online payments, Amazon announced to extend its range of payments system. It marches into online payments market by launching Pay with Amazon service.

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It announced on Monday it has developed Amazon Payments service to rival other payment terms including PayPal and Apple Pay.

With the modification and expansion it made, more online merchants are able to use Amazon Payments service then. The project it made is called Pay with Amazon. Such service allows users to settle accounts by inputting their Amazon account information. They have no need to provide their full name, home address and payment details.

The modified Pay with Amazon project could be an option for sellers. Sellers might create more sales by offering various payment terms for purchasers or third party partners.

Its Pay with Amazon service will be integrated with Shopify software in orde to attract more retailers and merchants to use. In accordance with its announcement on Monday, it mainly mentioned three major platforms that it worked with, such as Shopify, PrestaShop and Future Shop. It also listed some other companies on its official website.

The new service will help Amazon Payments to be an option for hundreds of thousands of online merchants. Only Shopify claimed that it has about 240,000 shops to use its platform.

Early in February, Southwest Airlines announced to apply Pay with Amazon feature in order to offer convenience for passengers to purchase entertainment products during the journey.

To Amazon, the more deals done with Amazon Payments, the more revenue it obtains. It charges merchant 2.9% of transaction sum as commission each deal, while Square charges 2.75%.

There are many payment platforms applied now. Amazon meets challenge to obtain more market share. Its existing consumers might choose Pay with Amazon service.

Why Microsoft didn’t release the applications quantity of Windows 10?

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Windows 10 has been downloading over 270 million times so far. This feature could be considered as the most attractive one at Build 2016. Its downloading from January to late of March were 70 million times. However, Microsoft still keeps silent for the applications quantity of Windows 10 app store.

In November, 2014, Microsoft had 500,000 applications of Windows and Windows Phone at its app store. It increased to 669,000 by September of 2015. It sounded reasonable that Microsoft released its growth at Build 2016 as it is a open issue for developers. However, it did not.

Windows 10 made some improvement and its applications at app store has been increased. We should have heard some good news from Microsoft.

Microsoft’s Universal Windows Platform(UWP) allows developers to edit applications which are compatible with many devices and different size of screen sizes. The applications which are made on the UWP-based will be able to run on Windows 10 PC/iPad, Windows 10 Mobile smartphones, Xbox One and HoloLens.

Despite it adds 100 applications at Windows 10 app store, its total applications could be 850,000 or even close to 1 million. Maybe Microsoft will release its data when the applications reach 1 million.

Considering Apple App Store and Google Play store reached over 1.5 million applications last year, Microsoft might not release its feature to avoid the comparison.

Comparing with its rivals, Windows app store needs to be improved a lot. Microsoft reaffirmed its application strategy is to let Windows applications run on various of devices.

NTT Data announced to acquire Dell’s IT service at $3.055 billion

According to the documents submitted to TSE by NTT Data on Monday, it claimed to acquire Dell IT service at $ 3.055 billion, reported at evening news on March 28, Beijing time.

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NTT Data pointed out in the documents that the acquisition is to strengthen its business in northern America market and further enhance cloud service and BOP service. There is no specific data of acquisition stated on the documents.

The documents showed that NTT Data will employ its current northern American and Indian 28,000 employees as a part of the acquisition.

This acquisition could be the biggest merger and transaction for NTT Data. The acquired IT service would help NTT to enhance its revenues that are out of Japanese market. Due to the population decrease and aging problems, Japanese economy got effected.

The predecessor of Dell IT service department was called Perot Systems. It was acquired by Dell with $3.9 billion in 2009. Perot Systems mainly offered technical consulting service for hospitals and government departments. It was considered as Dell’s non-core business.

Dell is in debt after it acquired EMC. Selling its IT department could release some financial stress from the EMC acquisition.

Dell announced to acquire EMC with $67 billion in October, 2015 which was the biggest transaction in the worldwide technical market. Dell will be in $49.5 billion debt when the acquisition is completed.

It was reported in last November that Dell would sell about $ 10 billion non-core assets, including software and service. It turned out to be true.

Nintendo plans to stop producing Wii U in late of 2016

Nikkei reported today that Nintendo plans to stop producing Wii U by the end of this year. It is likely that it launches the unrevealed NX device then.

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Nikkei once precisely reported the plan that Nintendo did not confirm yet. It claimed that the sales growth of Wii U slowed down a bit, and it seemed hard to change the situation, Nintendo decided to stop producing such gaming console.

Nikkei did not mention when NX device will be released or when Nintendo plans to stop selling Wii U to consumers.

It is said that the NX device applies the advanced technology which mixed by game console and mobile device. The rumor indicated that NX devlice will be released late this year. Some report suggested that the new game Legend of Zelda made for Wii U will be transferred to NX device as well.

Wii U was released in November of 2012. Nintendo sold 12.6 million Wii U around the world till 31st December, 2015. Wii console received the sales volume of 101 million units. Wii is popular console around the world. Wii U faces much pressure to catch up with the sales volume of Wii.

The sales of Wii U does not seem positive. It has been releasing for one year, but its sales volume is far behind PlayStation 4. According to the latest statistics from Sony, it sold about 36 million PlayStation 4 consoles.

Microsoft has not revealed the sales volume of Xbox One yet. It is said that such device has been sold over 18 million units.

Nintendo once claimed that it will announce the details of NX device later this year. The public assumed that it will announce its real name for this device then. It is possibly that Nintendo introduces this device at E3 conference in this June.

Jack Dorsey claimed Twitter won’t drop 140 character limit

Twitter took the drop of 140 character limit into consideration for a long time in order to obtain more new users. Its proposal has been criticized by its existing users and investors.

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CEO Jack Dorsey claimed that Twitter won’t drop 140 character limit when he was interviewed by NBC. Twitter recently welcome its 10th anniversary.

He said:” It’s a good constraint for us. It allows for of-the-moment brevity.” Twitter won’t drop its iconic feature and increase its characters to 10,000.

It has been rumored that Twitter planned to drop 140 character limit in the beginning of this year. Its future character might be increased to 10,000 characters. The rumor suggested the new feature would be effective on March.

Twitter wished to attract more users and enrich its platform by this measure. However, such suppose was against by Twitter users and investors. They complained if Twitter drops such iconic feature, this platform will be more alike Facebook.

It was reported in February that Twitter would like to re-design its timer shaft. Dorsey confirmed that the company had not plan to adjust its timer shaft next week. Many of Twitter’s products have been modified since Dorsey took over CEO last October, such as it launched Moments.

Regardless of its financial issues inside, Dorsey feels optimistic towards its future. He expects Twitter still the most powerful platform in 10 years. Twitter is a fundamental service. He claimed that they know what it is and what it presents. Its global career is just in the beginning stage.

Dropbox plans to sell its shares with 34% off due to valuation pressure

According to BuzzFeed report, American cloud storage company Dropbox plans to authorize the sales of a batch of shares with 34% off. It seems that the company faces with valuation pressure.

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It sets the price at $12.6 per share, selling in the secondary market by shareholders. Dropbox priced its share at $19.10 when it sold to large-size investors in C round financing in Jan., 2014.

EquityZen is responsible for this deal which helps the startups employees and shareholders to sell the undocumented shares. EquityZen stated on its official website that all stock exchanges made on its platform are authorized by related enterprises.

Dropbox was established in 2007 that locates in San Francisco. The high valuations startups face adverse condition as its $10 billion valuation was doubted. It reported last autumn that two mutual fund companies reduced 20% off Dropbox’s valuation. Then a third mutual fund company reduced 51% off its valuation.

It is hard to valued the startups due to the lower turnover rate. Many of Dropbox investors could refer the case of Box. The share price of Box decreased by 47% in comparison with its closing price that it went public on the day in 2015.

The investors who involved with this deal won’t be able to purchase shares directly. They have to buy EquityZen funds and then use those funds to buy the shares.

The investors are under a weak position if they buy the shares by this mean in comparison to the directly investment of Dropbox with capital. EquityZen stated in the papers that this investment won’t include any specific details of Dropbox’s financial condition.

US LivingSocial cuts half of its workforce

US second largest group-buying website LivingSocial is working on a new round reorganization in order to contain the business decline.

In this April 29, 2011 photo, Ross Arbes, 24, left, plays ping pong while on break at LivingSocial's offices in Washington. (AP Photo/Jacquelyn Martin)

LivingSocial cut 280 jobs, accounting for 50%-60% of its current workforce. About 120 of customer service positions are replaced by outsourcing contactors. LivingSocial once was the most excellent company in E-commerce industry. It was the most competitive rival of Groupon.

However, LivingSocial is going to recruit 200 to 250 new employees after this staff reduction plan.

CEO Gautam Thakar addressed when he was interviewed by the medium that the company made balance for its voucher business. It plans to put all investments on card-linking discount in the near future.

The card-linking business is testing in three major cities now. It offers discounts for LivingSocial clients when they check in hotels. The registers only need to show hotel staff the LivingSocial registered credit card, then pay for the hotel room. The specific discount amount and discount date are made by the hotels.

Thakar suggested that the company is looking for more investors for equity trading. If it comes successful, LivingSocial will make full use of those capital to explore new business in new cities and invest on business in new industry.

He added that reducing jobs doesn’t mean the company is on sale. There will be related negotiations concerning financing.

LivingSocial has financed $900 million from Amazon, JPMorgan Chase, Lightspeed, Venture Partners and so on.

In fact, this is the third time LivingSocial cut workforce since Thakar works as CEO in a year and a half. He laid off about in a total of 900 employees.

Amazon:shoppers could be able to pay with selfies soon

Mobile payments are more popular now. Apple Pay, Android Pay, Samsung Pay, Alipay or Wechat are the acceptable payments nowadays. They are welcome by consumers and merchants as they offer much convenience.

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Amazon is now working on a new technology that shoppers could verify their purchases by snapping a selfie in the near future.

According to the report of Re/code, Amazon has submitted a patent application for an advanced facial recognition system for check.

It is said that this advanced facial recognition system is similar to the biometric security solutions that has already used on some smartphones and laptops. It requires users to smile or wink to pass the facial recognition. If not, the system could not recognize the selfies whether they are from the owners.

Amazon suggests that the new technology is more secure than a traditional password as password could be hacked while a person’s face is not. The facial characters could be a bit different for the twins.

If this technology is approved, it could be used in stores, restaurants and cafes. For online shoppers, they could also store it at home with a secure internet environment.

Mastercard and Alibaba are said to be exploring the passibility of selfie payments except for Amazon.Are you comfortable to pay by selfies in the future?