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Tinder founder funds sex tips app Lover

Want to spice up the bedroom without paying for pills or awkward visits to a sex therapist? A new app called Lover lets you take a sexual personality quiz, explore carnal knowledge tutorials and discretely figure out which turn-ons you share with your partner. Built by board-certified sexual medicine clinical psychologist Dr. Britney Blair, Lover launches today on iOS with $5 million in seed funding from Tinder founder Sean Rad and other investors.

“It is strange that there are such taboos around sex when it is something we all do…whether we enjoy ourselves or not. We think it is time to start the conversation around this important aspect of our health,” says Dr. Blair. “We believe Lover can help build confidence, facilitate communication, improve partner connection and just raise consciousness about sex and sexuality.”

A solid portion of Lover’s content is free for the first seven days, including audio guides to oral sex, video explainers on how to be generous in bed and multi-step “playlists” of content like “Getting Hard, Made Easy.” Lover charges $9.99 per month or $59.99 per year for continued access to themed educational materials like “Coreplay Not Foreplay” and “Fantasy To Reality” that are recommended based on the results of your sexual questionnaire.

Almost 50% of women and 40% of men have a sexual complaint . . . [but] most people don’t realize how common and treatable their issues are,” Dr. Blair tells me. “In our [pre-launch tests] focused purely on erectile dysfunction, 62% of users reported improvements to their erections within three weeks of using the app. That’s pretty wild when you think Viagra’s efficacy rate is approximately 65% and it lasts only five hours.”

Startups like digital pharmacy Ro have scored $500 million valuations just 18 months after launch by prescribing and selling men’s health drugs like Viagra. Lover sees a market for education-based alternative approaches to sexual wellness.

Lover co-founders (from left): Jas Bagniewski, Dr. Britney Blair and Nick Pendle

Dr. Blair got interested in the space a decade ago after a Stanford grad school lecture illuminated how prevalent sexual problems are but how quickly they can be resolved with learning and communication. She teamed up with her CEO Jas Bagniewski, who’d been the manager of Europe’s largest e-commerce business, Zalando in the U.K., and a founder of City Deal that sold to Groupon. Bagniewski and fellow Lover co-founder Nick Pendle started European Casper mattress competitor Eve Sleep and brought it to IPO.

The plan is to combine Dr. Blair’s educational materials with Bagniewski and Pendle’s e-commerce chops to monetize Lover through subscriptions and eventually recommending products like sex toys for purchase. Now they have $5 million in seed funding led by Lerer Hippeau, and joined by Manta Ray Ventures, Oliver Samwer’s Global Founders Capital, Fabrice Grinda and Jose Marin. The cash will go toward building out an Android app and adding games that partners can play together in bed.

There are plenty of random sex tip websites out there. Lover tries to differentiate itself by personalizing content based on the results of a Myers-Briggs-esque quiz. This asks you how adventurous, communicative and assertive you are. You then receive a classification like “The Muse” with a few pages of explanation, for example, revealing how you like to inspire others while being the center of attention.

From there, Lover can suggest guides for mastering your own sexual personality or branching out into new behavior patterns. There’s also a feature copied from another app called XConfessions for figuring out what you and your partner like. You connect your apps and then separately swipe yes or no on questions about whether you’d like “having your partner drip candle wax on you” or “your partner dressing as a strict cop.” If you and they match, the app tells you both so you can try it out.

Overall, Lover’s content is a lot higher quality and more compassionate than where most people learn about sex: pornography. Having a real sexual medicine doctor overseeing the app lends credibility to Lover. And the design and tone throughout make you feel empowered rather than sleazy.

Still, Dr. Blair admits that “it’s hard to motivate people into behavioral change, people already have subscription apps on their phones and we may run into ‘subscription fatigue.’ ” People might feel natural paying for Viagra because the impact is obvious. The value of a subscription to sex tips might seem too vague or redundant to what’s free online.

To get a lot of users opening their wallets, not just their pants, Lover will need to do a better job of previewing what’s behind the paywall, and offering more interactivity that online content lacks. But if it can give users one unforgettable night thanks to its advice, it may be able to seduce them for the long-run.

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Alibaba Cloud revenue reaches $1.5B for the quarter on 62% growth rate

Alibaba issued its latest earnings report yesterday, and the Chinese eCommerce giant reported that cloud revenue grew 62 percent to $1.5 billion U.S., crossing the RMB10 billion revenue threshold for the first time.

Alibaba also announced that it had completed its migration to its own public cloud in the most recent quarter, a significant milestone because the company can point to its own operations as a reference to potential customers, a point that Daniel Zhang, Alibaba executive chairman and CEO, made in the company’s post-earnings call with analysts.

“We believe the migration of Alibaba’s core e-commerce system to the public cloud is a watershed event. Not only will we ourselves enjoy greater operating efficiency, but we believe, it will also encourage others to adopt our public cloud infrastructure,” Zhang said in the call.

It’s worth noting that the company also warned that the Coronavirus gripping China could have impact on the company’s retail business this year, but it didn’t mention the cloud portion specifically.

Yesterday’s revenue report puts Alibaba on a $6 billion U.S. run rate, good for fourth place in the cloud infrastructure market share race, but well behind the market leaders. In the most recent earnings reports, Google reported $2.5 billion in revenue, Microsoft reported $12.5 billion in combined software and infrastructure revenue and market leader AWS reported a tad under $10 billion for the quarter.

As with Google, Alibaba sits well in the back of the pack, as Synergy Research’s latest market share data shows. The chart was generated before yesterday’s report, but it remains an accurate illustration of the relative positions of the various companies.

Alibaba has a lot in common with Amazon. Both are eCommerce giants. Both have cloud computing arms. Alibaba, however, came much later to the cloud computing side of the house, launching in 2009, but really only beginning to take it seriously in 2015.

At the time, cloud division president Simon Hu boasted to Reuters that his company would overtake Amazon in the cloud market within 4 years. “Our goal is to overtake Amazon in four years, whether that’s in customers, technology, or worldwide scale,” he said at the time.

They aren’t close to achieving that goal, of course, but they are growing steadily in a hot cloud infrastructure market. Alibaba is the leading cloud vendor in China, although AWS leads in Asia overall, according to the most recent Synergy Research data on the region.

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Instagram prototypes ‘Latest Posts’ feature

Instagram users who miss the reverse chronological feed might get a new way to see the most recent pics and videos from who they follow. Instagram has been spotted internally prototyping a “Latest Posts” feature. It appears as a pop-up over the main feed and brings users to a special area showing the newest content from their network.

Instagram Latest Posts

For now, this doesn’t look like a full-fledged “Most Recent” reverse-chronological feed option like what Facebook has for the News Feed. But if launched, Latest Posts could help satisfy users who want to make sure they haven’t missed anything or want to know what’s going on right now.

The prototype was discovered by Jane Manchun Wong, the master of reverse engineering who’s provided tips to TechCrunch on scores of new features in development by tech giants. She generated the screenshots above from the code of Instagram’s Android app. “Welcome Back! Get caught up on the posts from [names of people you follow] and 9 more” reads the pop-up that appears over the home screen. If users tap “See Posts” instead of “Not Now” they’re sent to a separate screen showing recent feed posts.

We’ve reached out to Instagram for a confirmation of the prototype, more details and clarification on how Latest Posts would work. The company did not respond before press time. However, it has often confirmed the authenticity of Wong’s findings and some of the features have gone on to officially launch months later.

[Update 2/14 7am pacific: Instagram has now confirmed the authenticity of the prototype with a spokesperson telling TechCrunch [and later tweeting] that “This early prototype is from a recent hackathon – it is not available to anyone publicly, and we have no plans to test or launch it at this time.” Typically a feature like this is first prototyped internally, then sometimes tested externally if it meshes with Instagram’s objectives, and only then launched officially if the test results are positive.]

Back in mid-2016, Instagram switched away from a reverse-chronological feed showing all the posts of people you follow in order of decency. Instead, it forced all users to scroll through an algorithmic feed of what it thinks you’ll like best, ranked based on who and what kind of content you interact with most. That triggered significant backlash. Some users thought they were missing posts or found the jumbled timestamps confusing. But since algorithmic feeds tend to increase engagement by ensuring the first posts you see are usually relevant, Instagram gave users no way to switch back.

Instagram previously tried to help users get assurance that they’d seen all the posts of their network with a “You’re All Caught Up” insert in the feed if you’d scrolled past everything from the past 48 hours. Latest Posts could be another way to let frequent Instagram users know that they’re totally up to date.

That might let people close the app in confidence and resume their lives.

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7-month-old Simsim secures $16M for its social commerce in India

Simsim, a social commerce startup in India, said on Friday it has raised $16 million in seven months of its existence as it attempts to replicate the offline retail experience in the digital world with help from influencers.

The Gurgaon-based startup said it raised $16 million across seed, Series A and Series B financing rounds from Accel Partners, Shunwei Capital and Good Capital. (The most recent round, Series B, was of $8 million in size.)

“Despite e-commerce players bandying out major discounts, most of the sales in India are still happening in brick-and-mortar stores. There is a simple reason for that: Trust,” explained Amit Bagaria, co-founder of Simsim, in an interview with TechCrunch.

The vast majority of Indians are still not comfortable with reading descriptions — and that too in English, he said.

Simsim is taking a different approach to tackle this opportunity. On its app, users watch short-videos produced in local languages by influencers who apply beauty products or try out dresses and explain the ins-and-outs of the products. Below the video, the items appear as they are being discussed and users can tap on them to proceed with the purchase.

“Videos help in educating users about the category. So many of them may not have used face masks, for instance. But it becomes easier when the community influencer is able to show them how to apply it,” said Rohan Malhotra, managing partner at Good Capital, in an interview with TechCrunch.

Influencers typically sell a range of items and users can follow them to browse through the past catalog and stay on top of future sales, said Bagaria, who previously worked at the e-commerce venture of financial services firm Paytm .

“This interactiveness is enabling Simsim to mimic the offline stores experience,” said Malhotra, who is one of the earliest investors in Meesho, also a social commerce startup that last year received backing from Facebook and Prosus Ventures.

“The beauty to me of social commerce is that you’re not changing consumer behavior. People are used to consuming on WhatsApp — and it’s working for Meesho. Over here, you are getting the touch and feel experience and are able to mentally picture the items much clearer,” he said.

Simsim handles the inventories, which it sources from manufacturers and brands, and it works with a number of logistics players to deliver the products.

“Several Indian cities and towns are some of the biggest production hubs of various high-quality items. But these people have not been able to efficiently sell online or grow their network in the offline world. On Simsim, they are able to work with influencers and market their products,” said Bagaria.

The platform today works with more than 1,200 influencers, who get a commission for each item they sell, said Bagaria, who plans to grow this figure to 100,000 in the coming years.

Even as Simsim, which has been open to users for six months, is still in its nascent stage, it is beginning to show some growth. It has amassed over a million users, most of whom live in small cities and towns, and it is selling thousands of items each day, said Bagaria.

He said the platform, which currently supports Hindi, Tamil, Bengali and English, will add more than a dozen additional languages by the end of the year. In about a month, Simsim also plans to start showing live videos, where influencers will be able to answer queries from users.

A handful of startups have emerged in India in recent years that are attempting to rethink the e-commerce market in the nation. Amazon and Walmart, both of which have poured billions of dollars in India, have taken a notice too. Both of them have added support for Hindi in the last two years and have made several more tweaks to their platforms to expand their reach.

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Soylent shakes up its executive team, naming Demir Vangelov as its new CEO

Soylent, the once high-flying Los Angeles-based meal replacement startup that has raised $72.4 million in financing from investors including Google Ventures, Lerer Hippeau and Andreessen Horowitz, has shaken up its executive team.

This week, the company announced in a blog post that the company’s chief financial officer, Demir Vangelov, would be taking over the top spot at the company and current chief executive Bryan Crowley would be stepping down.

“We would like to thank Bryan Crowley for his immense contributions to the company,” wrote Soylent chairman and founder Rob Rhinehart, in a statement.

Vangelov, who’s taking over from Crowley, previously served as an executive at the milk alternative company Califia Foods and at Oberto Foods, so he knows consumer packaged brands.

Crowley came to the company with grand ambitions to revitalize the Soylent brand and product line. The company had introduced a line of snack bars to complement its line of powders and drinks, while updating its drink line with a nootropic beverage containing caffeine and supplements supposedly designed to boost cognitive performance in addition to providing a meal replacement.

Soylent also set up fancy digs in Los Angeles’ arts district and established a Food Innovation Lab, which only a year ago awarded $25,000 to a few food startups working there.

Now, only a year later, the Food Innovation Lab is shuttered and Soylent has moved to a smaller office space. The company declined to comment on the news or its new strategy.

In some ways, Soylent may suffer from being a progenitor of an investment thesis which has passed it by. When the company launched in 2013, it was a fairly novel idea to start a new food brand, as Rhinehart notes in the blog post announcing the executive change:

Soylent started as a movement. In 2013, there was scarcely any innovation or attention to one of the world’s most important product sectors: our food. Today, innovative food companies are performing record-breaking IPOs, new retailers are raising massive growth rounds, and food, agriculture, and ingredient technologies are some of the most disruptive startups in the ecosystem. But we still have a lot of work to do to fulfill Soylent’s mission of nutrition for all.

Today we are making some changes at the company. We are renewing our commitment to being transparent, authentic and science-driven, all while putting the customer first. To do this we are going to re-focus on our core products. We will be improving our current product line as well as bringing some truly innovative ideas off the shelf and into the market, and we will be improving our prices by focusing on quality over quantity when it comes to distribution and marketing.

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As 5 more startups join the $100M club, are we just making a pre-IPO list?

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Today we’re adding five names to the $100 million annual recurring revenue (ARR) club and listing all preceding members in a single post. This series, which was a bit of an accident, if I’m being honest, has included more than a dozen companies that have reached $100 million ARR, along with a handful more that are close.

Today we’re adding Seismic, ThoughtSpot, Noom, Riskified and Moveable Ink to the list. As always, we have funding histories, growth metrics and interviews below on the new group. But at this juncture, as we head toward the two-dozen company mark, it’s a good time to ask, what is this list that we’re compiling?

At first, the goal of the jokingly-named “$100 million ARR club” was to highlight companies that were of real scale, an idea designed to gently push back against the “unicorn” moniker. As more and more unicorns were born and the private-capital world became adept at getting startups of all maturity levels over the requisite $1 billion valuation threshold, the term began to feel too diluted to have much signaling value.

While, in contrast, $100 million in ARR felt much more “hard” to the valuation metric’s comparable squishiness. But, since that first post, more and more companies have written in, sharing hard metrics and the series has continued. Perhaps we’re really just compiling an IPO watchlist, a grouping of firms that will probably go (or should go) public in the next 18 months.

Let’s dig into our new additions. Then, we’ll list all our prior entrants with links to our preceding coverage in case you are playing catch up. With that, here’s the entire $100 million ARR club a list of companies that we think could go public inside the next six quarters.

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Judge temporarily halts work on JEDI contract until court can hear AWS protest

A sealed order from a judge today has halted the $10 billion, decade-long JEDI project in its tracks until AWS’s protest of the contract award to Microsoft can be heard by the court.

The order signed by Judge Patricia E. Campbell-Smith of the U.S. Court Federal Claims stated:

The United States, by and through the Department of Defense, its officers, agents, and employees, is hereby PRELIMINARILY ENJOINED from proceeding with contract activities under Contract No. HQ0034-20-D-0001, which was awarded under Solicitation No. HQ0034-18-R-0077, until further order of the court.

The judge was not taking this lightly, adding that Amazon would have to put up $42 million bond to cover costs should it prove that the motion was filed wrongfully. Given Amazon’s value as of today is $1.08 trillion, they can probably afford to put up the money, but they must provide it by February 20th, and the court gets to hold the funds until a final determination has been made.

At the end of last month, Amazon filed a motion to stop work on the project until the court could rule on its protest. It is worth noting that in protests of this sort, it is not unusual to stop work until a final decision on the award can be made.

This is all part of an ongoing drama that has gone on for a couple of years since the DoD put this out to bid. After much wrangling, the DoD awarded the contract to Microsoft at the end of October. Amazon filed suit in November, claiming that the president had unduly influenced the process.

As we reported in December, at a press conference at AWS re:Invent, the cloud arm’s annual customer conference, AWS CEO Andy Jassy made clear the company thought the president had unfairly influenced the procurement process:

“I would say is that it’s fairly obvious that we feel pretty strongly that it was not adjudicated fairly,” he said. He added, “I think that we ended up with a situation where there was political interference. When you have a sitting president, who has shared openly his disdain for a company, and the leader of that company, it makes it really difficult for government agencies, including the DoD, to make objective decisions without fear of reprisal.”

Earlier this week, the company filed paperwork to depose the president and Secretary of Defense Mark Esper.

The entire statement from the court today halting the JEDI project:

**SEALED**OPINION AND ORDER granting [130] Motion for Preliminary Injunction, filed by plaintiff. The United States, by and through the Department of Defense, its officers, agents, and employees, is hereby PRELIMINARILY ENJOINED from proceeding with contract activities under Contract No. HQ0034-20-D-0001, which was awarded under Solicitation No. HQ0034-18-R-0077, until further order of the court.

Pursuant to RCFC 65(c), plaintiff is directed to PROVIDE security in the amount of $42 million for the payment of such costs and damages as may be incurred or suffered in the event that future proceedings prove that this injunction was issued wrongfully.

As such, on or before 2/20/2020, plaintiff is directed to FILE a notice of filing on the docket in this matter indicating the form of security obtained, and plaintiff shall PROVIDE the original certification of security to the clerk of court. The clerk shall HOLD the security until this case is closed.

On or before 2/27/2020, the parties are directed to CONFER and FILE a notice of filing attaching a proposed redacted version of this opinion, with any competition-sensitive or otherwise protectable information blacked out. Signed by Judge Patricia E. Campbell-Smith.

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Phone manufacturers eye their next move as 5G goes mainstream

For two years running, Samsung played the same trick and front-loaded its annual event by announcing a new foldable.

Last year’s announcement of the Fold was a huge one — the first viable (relatively speaking, of course) foldable handset from a major manufacturer. Of course, some stuff has happened in the intervening months, taking a bit of the shine off the device and the category at large.

This week at Unpacked 2020, Samsung came out of the gate swinging once again, announcing the Galaxy Z Flip at the top of the event. As with last year, the move had the effect of taking some of the wind out of its flagship announcement, a sign of a company convinced that standing out from the pack and reversing flagging smartphone sales trends will require some bold decision-making.

That’s not to say the company’s not pushing the envelope on its flagships. Between 100x zoom on the Ultra and 8K video on all of the devices, Samsung is still duking it out on imaging. But it appears not to have any illusions about what really gets users excited in an era of smartphone ubiquity.

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Daily Crunch: Mobile World Congress is canceled

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

1. GSMA cancels Mobile World Congress due to coronavirus concerns

“The GSMA has cancelled MWC Barcelona 2020 because the global concern regarding the coronavirus outbreak, travel concern and other circumstances, make it impossible for the GSMA to hold the event,” CEO John Hoffman said in a statement.

Over the past few days, dozens of big name exhibitors announced they would skip this year’s show. MWC usually attracts more than 100,000 attendees from 200 countries to Barcelona.

2. Andy Rubin’s Essential shuts down

Essential was supposed to disrupt the smartphone industry, but it struggled with bad timing, broader industry issues and a founder embroiled in troubling allegations of sexual misconduct, ultimately failing to make it far beyond the launch of its first handset.

3. Astranis raises $90 million for its next-gen satellite broadband internet service

The funding will be used to help the company launch its first commercial satellites, which will be the bedrock of its future internet service offering, aimed at connecting the massive market of underserved populations around the world. The company’s focus on geostationary satellites — rather than satellites that hand off their connection through a kind of relay system — makes it different from many of the other entrants in the satellite internet race.

4. A new senate bill would create a US data protection agency

Sen. Kirsten Gillibrand (D-NY) has published a bill which, if passed, would create a U.S. federal data protection agency designed to protect the privacy of Americans, with the authority to enforce data practices across the country.

5. Will Apple, Facebook or Microsoft be the future of augmented reality?

While there are more AR platforms than the big three mentioned in the headline, Digi-Capital’s Tim Merel argues that they represent the top of the pyramid for three different types of AR roadmap. (Extra Crunch membership required.)

6. Facebook Dating launch blocked in Europe after it fails to show privacy workings

Facebook has been left red-faced after being forced to call off the launch date of its dating service in Europe because it failed to give its lead EU data regulator enough advanced warning, and it failed to demonstrate it had performed a legally required assessment of privacy risks.

7. Intuition Robotics raises $36M for its empathetic digital companion

The company, best known for its ElliQ home robot for the elderly, also disclosed that it’s working with the Toyota Research Institute to bring its technology to the automaker’s LQ concept. Intuition’s goal is to build digital assistants that can create emotional bonds between humans and machines.

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Netflix fights new streaming rivals with Samsung partnership

As the streaming battles heat up, Netflix is hoping a new partnership with Samsung will help it fend off rivals. At Samsung’s Unpacked event this week, the mobile device maker announced a deal with Netflix that will bring to its Galaxy smartphones special bonus content associated with several Netflix original shows. The partnership also allows Netflix to more deeply integrate its streaming service with Samsung devices.

The latter part of the partnership involving device integration is fairly standard. In Netflix’s case, Samsung will allow users to launch Netflix content by way of its voice assistant Bixby. Netflix will also deliver recommendations to Samsung users, and will be better integrated into specific Samsung mobile features, like search and its discovery platform, Samsung Daily.

It’s not unusual for Samsung to work with tech companies to offer tighter integration and distribution for their app. For example, Samsung and Spotify announced a formal partnership in 2018, which has since resulted in consumer-facing features like Spotify’s deep integration with the new Galaxy Buds+, Galaxy S20 and Galaxy Z Flip.

The new Netflix content partnership, on the other hand, is unique.

Though Netflix didn’t go so far as to announce original series or movies only available to Samsung users, it will offer bonus content to Samsung device owners that won’t be found elsewhere. This includes behind-the-scenes footage, companion stories and other bonus content — much of it filmed by the Samsung Galaxy S20’s new camera, of course.

Initially, bonus content will be available for shows including “Narcos: Mexico,” “Sintonia,” “Elite” and “Netflix is a Joke.” Netflix says more bonus content will become available in the future.

The two companies have a decade-long relationship, which has seen them working together on joint marketing campaigns and other advertising. However, they’ve not before done a content deal like this.

“The mission of this partnership [is] to make the Netflix viewing experience on Samsung mobile the absolute best it can be,” said Netflix CMO Jackie Lee-Joe, announcing the company’s plans at Samsung’s event. “This means that even more users can enjoy our best-in-class stories across all genres through even better product integration with Galaxy mobile devices,” she noted.

The partnership comes at a critical time for Netflix. Its subscriber growth in the U.S. has gone flat, even as its international growth is booming. More importantly, perhaps, is how Netflix is coming up against a whole host of new streaming competitors with money to burn — including Disney+, Apple TV+, WarnerMedia’s HBO Max, NBCU’s Peacock and Quibi.

What’s worse is that these new streaming services already have ways to tightly integrate with mobile devices or have partnerships allowing them to distribute their service to millions.

For example, [TechCrunch parent] Verizon is offering its mobile subscribers a free year of Disney+. Jeffrey Katzenberg’s mobile streaming service Quibi is partnering with T-Mobile. NBCU owner Comcast has its own mobile network, Xfinity Mobile, and HBO Max hails from AT&T’s WarnerMedia. And Apple, for now, is just giving away Apple TV+ for free to anyone who buys a new iPhone, iPad, iPod touch, Apple TV or Mac.

That leaves Netflix without a competitive distribution strategy. And its only viable option to get similar global scale is Samsung, which had an 18.8% worldwide market share in Q4 2019 (in terms of shipments), compared with Apple’s 20%. Samsung also has solid distribution in key international markets where Netflix is seeing its strongest growth.

One argument against the Samsung partnership is that offering bonus content to Samsung users could alienate those watching Netflix on other platforms. Forbes even referred to the move as “controversial.” However, a Netflix spokesperson confirmed with TechCrunch that the special content will be published on Samsung Daily, plus Samsung.com, and Samsung’s social channels “for all to enjoy.”

They also told us that Samsung won’t have the exclusive rights to the content — in fact, Netflix has the right to publish the content to its own social media channels, if it chooses.

“We believe this significant partnership will provide millions of Samsung Mobile users across the globe the best mobile entertainment experience, and make discovering new stories around the world easier than ever,” said Lee-Joe.

Update, 2/13/20 4:30 PM ET to add that Netflix has the rights to publish the bonus content, too, making this a non-exclusive deal. 

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