Tuesday, May 10, 2016

YouTube's New Challenger, Facebook and LendingClub is in Trouble

Amazon Video Direct vs YouTube
The battle of internet giants refreshes once again as Amazon releases its own YouTube like service Amazon Video Direct. Amazon will let people post videos on its website and earn money through advertising, and royalties, very similar to Google’s own Youtube. Whole Amazon already offers movies and television shows that compete with Netflix, it is obvious Amazon sees video as a way to attract new customers and retain existing ones. The new Amazon service gives video producers many ways to get paid. They can sell or rent their programs on Amazon, or make videos available to all Amazon customers (not just Prime subscribers) in an advertising-supported format. Another option: Provide videos to Amazon Prime members and get royalty payments based on how many times the content is streamed, or as part of an add-on subscription.

Facebook Is In Trouble
The Senate Commerce Committee has sent a letter to Mark Zuckerberg asking him to answer some question regarding Facebook’s Trending Topics feature. Trending Topics displays daily trending news and headlines, next to the main news feed. Facebook faces allegations that the social media giant was suppressing conservative media on its social platforms, while Facebook denies these allegations, it seems like the government wants some answers.

LendingClub CEO Fired

On Monday Renaud Laplanche who was the founder of fintech company LendingClub that upend the finance industry by connecting borrowers directly with investors, was ousted from his firm after the board said it found problems with its lending practices, as well as the executive’s lack of disclosure surrounding his personal investments. A board review found that the company sold an investor $22 million in loans whose characteristics violated the investor’s “express instructions.” The board found that some people at the company knew the loans didn’t meet the investor’s criteria and that the application date on $3 million of those loans had been altered to make them comply.

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