This $1 billion Swedish payment company thinks it can save newspapers | ||
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The newspaper industry is in a tough spot, with circulation and advertising falling and no clear sign of how to crack digital. In the US, New York Daily News is struggling to sell itself for $1 at the moment and while that's one of the worst horror stories from the industry, it's a sign that things are not looking good. But one Swedish online payment company thinks it has built a tool that can help ease papers' transition to digital — and could ultimately save the industry. Klarna, valued at over $1 billion (£640 million) thinks its one-click payments could revolutionise the way we consumer media online. The technologyFounded in 2005, Klarna built its business around the idea of shifting payment until after you've bought something online, rather than before. It basically let's any retailer put the equivalent of Amazon's "buy with one click" button on its site. Click the Klarna button, then input your email and post code. That's it. You've bought your item. The buyer then gets an email from Klarna asking them to fill in payment and delivery details. This method radically improves so-called 'conversion rates' — the percentage of people who actually follow through with a purchase after looking or putting it in their basket. The smart thing about the company's technology is that it then remembers your computer, smartphone or tablet, meaning you only have to fill in payment details once. Next time you go to any Klarna enabled site you can literally buy with one click. This has turned into a billion dollar idea for Klarna, with the company attracting money from Silicon Valley's renowned venture capital fund Sequoia Capital, which backed PayPal back in the late 90s. Klarna processes an incredible 30% of all online purchases in Sweden and even works with eBay in the country, despite the auction site's links to rival PayPal. Last year it processed $9 billion (£5.74 billion) worth of transactions globally. The pitch
But Klarna's founders believe it could also provide a huge boost to the online media industry. The company has started working with Bonnier AB, a $4 billion (£2.55 billion) Nordic media giant, to offer customers an easier and simpler way of accessing articles. Co-founder Niklas Adalberth told Business Insider: "People are trying to force everyone into these complex subscriptions but people don't want to do that." Browers visiting Bonnier AB sites can pay €1 for a day pass with one click and will soon be able to buy individual articles for small sums. Klarna isn't the first to try this. The New York Times, Wall Street Journal and The Washington Post have all partnered with a Dutch start-up called Blendle to offer micropayments for articles. But Adelberth, predictably, thinks Klarna's solution is better. He says: "Lots of people have tried to do micropayments but they all require you to download an app or sign up first. People don't want to do that." Klarna is currently only soft launched with Bonnier but plans a full roll-out in June. But Adalberth says the impact on conversion rates is already "massive." "If people see this complex subscription sign up people will just go somewhere else, but if you can provide them with an instant 'buy this article for 10p' they'd do it." Klarna is focusing on the roll-out with Bonnier but the plan is to pitch its tech to other media organisations around the world. Adalberth said: "We think it's an excellent solution and everyone we present it is is like,'Wow you guys are going to help save the media industry.'" We could soon see the tech being used by US and UK publishers. Klarna is set to launch in the US imminently and launched in the UK just before Christmas. It has signed up around 100 retailers here so far. Join the conversation about this story » NOW WATCH: 'The Little Prince' trailer looks better than anything Pixar has made in years  | ||
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Making it simpler for people to buy online is great for online retailers. Samsung's answer to Spotify is reportedly laying off dozens of employees | ||
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The department behind Samsung's music streaming service Milk Music has been hit with dozens of layoffs, according to Variety. Up to 15% of Media Solutions Center America's 250 staff have been laid off, according to the Hollywood news outlet's sources. Milk Music was launched in May 2014, and lets users stream music through curated genre-specific radio stations, similar to Pandora or Spotify. It replaced Music Hub, Samsung's previous subscription music streaming platform. Media Solutions Center is also responsible for Milk Video and Milk VR. Milk Video offers video streaming while Milk VR curates immerse virtual reality video. Samsung VP of content and services Kevin Swint also recently left the unit, according to Variety's sources. Meanwhile, the streaming business is heating up in a big way. Spotify, one of the biggest names in the business, announced video streaming and a slew of other new features earlier this week. Earlier this year, Tidal also arrived on a scene — a music streaming platform owned by Jay Z that differentiates itself through high-quality audio. And Apple is also widely expected to launch a streaming platform later this year, based on the technology it acquired when it bought Beats Music last year. Reports suggest that (unlike Spotify) it will be paid-subscription-only, but may offer free trials of up to three months to entice new users. It is expected to have curated streams and playlists put together by high-profile artists, as well as content exclusive to the platform. It will also reportedly include some social elements, similar to Apple's now-discontinued music social network Ping. Meanwhile, Samsung is running into difficulties due to a fall in sales in its historically very profitable mobile division. Over the last year, sales in China plummeted by more than 50%, and early shipments of its new flagship phone, the Galaxy S6, look even weaker. A spokesperson for Samsung told Variety only that the South Korean company "remains committed to delivering engaging, connected entertainment experiences through its Milk platform, and we continue to expand our library of music, video and virtual reality." We have also reached out to Samsung, and will update this story when they respond. Join the conversation about this story » NOW WATCH: How A Samsung Executive Changed His Life After Surviving A Plane Crash  | ||
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Britain's 180-year-old laws about horses, pigs, and cows could block driverless cars | ||
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Government lawyers in the UK are scrambling to rewrite outdated laws about driving horse, cattle and pigs on the pavement that could delay driverless car trials, the Times reports. The Government announced in February that two-seater 'pods' would be trialled in the south-east of the country. But the trial, which would see the pods travel along the pavement, requires the rewriting of certain laws. The Highway Act 1835 bans people from riding horse-drawn carriages and driving a “horse, ass, sheep, mule, swine or cattle” down the road. The same legislation is used to stop cyclist riding on the pavement and drivers mounting the kerb while parking. Tim Armitage, project director of the £19 million ($30 million) UK Autodrive project, told the Times he's confident the legal obstacle can be overcome. Join the conversation about this story » NOW WATCH: Here's what 'Game of Thrones' stars look like in real life  | ||
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Dogs domesticated over 27,000 years ago: study | ||
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Washington (AFP) - Man's best friend may have been his companion for far longer than believed, scientists reported, publishing an analysis that dates domesticated dogs to over 27,000 years ago. Humans possibly domesticated dogs 27,000 to 40,000 years ago, according to Swedish researchers whose work was published Thursday in the journal Current Biology. The scientists based their analysis on an ancient Siberian jaw fragment. Previous estimates said modern dogs diverged from their wolf ancestors 16,000 years ago after the last ice age. The "Taimyr" wolf bone in the study, dated to 35,000 years ago, shows that the animal was the most recent ancestor of wolves and modern dogs. "Dogs may have been domesticated much earlier than is generally believed," said Love Dalen from the Swedish Museum of Natural History. Dalen said the only other explanation for the unusual bone was the less likely possibility that a major divergence between wolf populations took place at that time that gave birth to modern wolves while the wolf population became extinct. The Taimyr wolf lived a few thousand years after Neanderthals disappeared and modern humans spread throughout Asia and Europe, the study said. DNA analysis also showed modern Siberian Huskies and Greenland sled dogs have an "unusually large" number of gene in common with the Taimyr wolf. Join the conversation about this story »  | ||
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Nadal and Djokovic face French Open last-eight duel | ||
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Paris (AFP) - Nine-time French Open champion Rafael Nadal and world number one Novak Djokovic were placed on a quarter-final collision course in Friday's draw. Nadal is seeded a lowly sixth this year after slipping to seven in the rankings and as a result was always likely to face one of his major rivals in the last eight. The other potential quarter-finals could see second seed Roger Federer, the 2009 champion, face Swiss compatriot Stan Wawrinka. Third seeded Andy Murray was drawn for a potential clash against David Ferrer while Tomas Berdych could tackle Japan's Kei Nishikori.
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This $1 billion Swedish payment company thinks it can save newspapers | ||
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The newspaper industry is in a tough spot, with circulation and advertising falling and no clear sign of how to crack digital. In the US, New York Daily News is struggling to sell itself for $1 at the moment and while that's one of the worst horror stories from the industry, it's a sign that things are not looking good. But one Swedish online payment company thinks it has built a tool that can help ease papers' transition to digital — and could ultimately save the industry. Klarna, valued at over $1 billion (£640 million) thinks its one-click payments could revolutionise the way we consumer media online. The technologyFounded in 2005, Klarna built its business around the idea of shifting payment until after you've bought something online, rather than before. It basically let's any retailer put the equivalent of Amazon's "buy with one click" button on its site. Click the Klarna button, then input your email and post code. That's it. You've bought your item. The buyer then gets an email from Klarna asking them to fill in payment and delivery details. This method radically improves so-called 'conversion rates' — the percentage of people who actually follow through with a purchase after looking or putting it in their basket. The smart thing about the company's technology is that it then remembers your computer, smartphone or tablet, meaning you only have to fill in payment details once. Next time you go to any Klarna enabled site you can literally buy with one click. This has turned into a billion dollar idea for Klarna, with the company attracting money from Silicon Valley's renowned venture capital fund Sequoia Capital, which backed PayPal back in the late 90s. Klarna processes an incredible 30% of all online purchases in Sweden and even works with eBay in the country, despite the auction site's links to rival PayPal. Last year it processed $9 billion (£5.74 billion) worth of transactions globally. The pitch
But Klarna's founders believe it could also provide a huge boost to the online media industry. The company has started working with Bonnier AB, a $4 billion (£2.55 billion) Nordic media giant, to offer customers an easier and simpler way of accessing articles. Co-founder Niklas Adalberth told Business Insider: "People are trying to force everyone into these complex subscriptions but people don't want to do that." Browers visiting Bonnier AB sites can pay €1 for a day pass with one click and will soon be able to buy individual articles for small sums. Klarna isn't the first to try this. The New York Times, Wall Street Journal and The Washington Post have all partnered with a Dutch start-up called Blendle to offer micropayments for articles. But Adelberth, predictably, thinks Klarna's solution is better. He says: "Lots of people have tried to do micropayments but they all require you to download an app or sign up first. People don't want to do that." Klarna is currently only soft launched with Bonnier but plans a full roll-out in June. But Adalberth says the impact on conversion rates is already "massive." "If people see this complex subscription sign up people will just go somewhere else, but if you can provide them with an instant 'buy this article for 10p' they'd do it." Klarna is focusing on the roll-out with Bonnier but the plan is to pitch its tech to other media organisations around the world. Adalberth said: "We think it's an excellent solution and everyone we present it is is like,'Wow you guys are going to help save the media industry.'" We could soon see the tech being used by US and UK publishers. Klarna is set to launch in the US imminently and launched in the UK just before Christmas. It has signed up around 100 retailers here so far. Join the conversation about this story » NOW WATCH: 'The Little Prince' trailer looks better than anything Pixar has made in years  | ||
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Samsung's answer to Spotify is reportedly laying off dozens of employees | ||
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The department behind Samsung's music streaming service Milk Music has been hit with dozens of layoffs, according to Variety. Up to 15% of Media Solutions Center America's 250 staff have been laid off, according to the Hollywood news outlet's sources. Milk Music was launched in May 2014, and lets users stream music through curated genre-specific radio stations, similar to Pandora or Spotify. It replaced Music Hub, Samsung's previous subscription music streaming platform. Media Solutions Center is also responsible for Milk Video and Milk VR. Milk Video offers video streaming while Milk VR curates immerse virtual reality video. Samsung VP of content and services Kevin Swint also recently left the unit, according to Variety's sources. Meanwhile, the streaming business is heating up in a big way. Spotify, one of the biggest names in the business, announced video streaming and a slew of other new features earlier this week. Earlier this year, Tidal also arrived on a scene — a music streaming platform owned by Jay Z that differentiates itself through high-quality audio. And Apple is also widely expected to launch a streaming platform later this year, based on the technology it acquired when it bought Beats Music last year. Reports suggest that (unlike Spotify) it will be paid-subscription-only, but may offer free trials of up to three months to entice new users. It is expected to have curated streams and playlists put together by high-profile artists, as well as content exclusive to the platform. It will also reportedly include some social elements, similar to Apple's now-discontinued music social network Ping. Meanwhile, Samsung is running into difficulties due to a fall in sales in its historically very profitable mobile division. Over the last year, sales in China plummeted by more than 50%, and early shipments of its new flagship phone, the Galaxy S6, look even weaker. A spokesperson for Samsung told Variety only that the South Korean company "remains committed to delivering engaging, connected entertainment experiences through its Milk platform, and we continue to expand our library of music, video and virtual reality." We have also reached out to Samsung, and will update this story when they respond. Join the conversation about this story » NOW WATCH: How A Samsung Executive Changed His Life After Surviving A Plane Crash  | ||
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MARIO DRAGHI: Europe must unlock its huge untapped potential | ||
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You could forgive European Central Bank (ECB) chief Mario Draghi for being a pessimist about the eurozone after years of crisis, but his speech on Friday argues that he's not satisfied with the current growth rebound. He wants Europe to set about "unleashing an untapped potential for substantially higher output, employment and welfare." This speech is vintage Draghi in some ways. When the eurozone economy isn't going too badly and there's little pressure on him to announce more monetary easing, he's most comfortable talking about one subject: Structural reform. He's got no powers or authority over this sort of thing, other than to hector national governments. Today's no exception, with Draghi using the word "reform" 85 times outside of the title and footnotes of his speech. He's a big fan of reform, and he wants to make sure everyone knows it — he'll remind you over and over again, if necessary. Here's the crux of his speech: The important point, however, is that in the euro area today structural reforms are not about creating minor efficiencies or marginal gains. They are about unleashing an untapped potential for substantially higher output, employment and welfare. And in the current environment, this would play a crucial role in ensuring that the ongoing cyclical recovery becomes a stronger, structural recovery. He's also arguing that now is the perfect time to make those reforms, with a cyclical upturn in the eurozone. Some economists actually thought Europe was slipping toward its third post-financial crisis recession at the end of last year, but instead it recorded its strongest quarter of growth since 2011 in Q1 this year. That's down to a number of different things — most notably, the fall in oil prices, and the European Central Bank's quantitative easing (QE) programme, which was bigger than most people expected. Goldman Sachs analysts have also noted an easier fiscal stance in Italy, Germany and Spain which would help to prop the recovery a little (or at least make sure it isn't snubbed out). Here's his conclusion: What the cyclical recovery does achieve is to provide near perfect conditions for governments to engage more systematically in the structural reforms that will anchor the return to growth. Monetary policy can steer the economy back to its potential. Structural reform can raise that potential. And it is the combination of these demand and supply policies that will deliver lasting stability and prosperity. One of Draghi's slides suggests even with the euro crisis and recessions, Europe could have set itself on a better growth path than the one it's managed:
All in all, Draghi isn't satisfied with Europe's recovery progress so far — and you can expect to hear a lot more from him about reforms in the future. Join the conversation about this story » NOW WATCH: Here's how Floyd Mayweather spends his millions  | ||
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Britain's 180-year-old laws about horses, pigs, and cows could block driverless cars | ||
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Government lawyers in the UK are scrambling to rewrite outdated laws about driving horse, cattle and pigs on the pavement that could delay driverless car trials, the Times reports. The Government announced in February that two-seater 'pods' would be trialled in the south-east of the country. But the trial, which would see the pods travel along the pavement, requires the rewriting of certain laws. The Highway Act 1835 bans people from riding horse-drawn carriages and driving a “horse, ass, sheep, mule, swine or cattle” down the road. The same legislation is used to stop cyclist riding on the pavement and drivers mounting the kerb while parking. Tim Armitage, project director of the £19 million ($30 million) UK Autodrive project, told the Times he's confident the legal obstacle can be overcome. Join the conversation about this story » NOW WATCH: Here's what 'Game of Thrones' stars look like in real life  | ||
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