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Happy Friday! Here’s a roundup of industry news for the week.
eBay And PayPal To Split Into Two Separate Companies - Tech Crunch
After an in-depth report, eBay and PayPal will split, reportedly to help both companies grow. eBay originally acquired PayPal to help with online, instant-buy payments that supported same-day delivery. But, PayPal's recent forays into mobile suggest that the company is moving towards in-person mobile solutions. For PayPal, this split could create opportunities for the company to work with some of eBay's biggest competitors, like Alibaba.
Brands are looking to social more than ever this year for their holiday marketing campaigns. With a projected $650 billion that will be spent on holiday shopping, 67 percent of marketers are increasing their holiday social media budgets. 92 percent of marketers say they will spend the majority of their social media budget on Facebook, proving the social network still reigns as king. But, marketers are excited about Instagram, and voted it the break-out social network for 2014. Unfortunately for smaller, untested social networks like WANELO, marketers aren't willing to spend on the unknown and are allocating most of their budget to traditional platforms like Twitter and Facebook.
Since Ello's quick rise in popularity, consumers, critics and reporters alike have compared the social network to Facebook. In an interview with Inc., creator, Paul Budnitz claims that he doesn't dislike Facebook and won't even compare the two platforms. In his words, Ello is a social network while Facebook is an advertising platform. According to Budnitz, Ello will remain free and simple for users, leading to the question everyone asks: how will the social network make money? Essentially, Ello will run like an App store where some features cost money and others are free.
Facebook Promises Deeper Review of User Studies, but Is Short on the Particulars - The New York Times
After serious backlash this summer surrounding Facebook's manipulated news feed study, the social networking site is promising strict scrutiny when researching, especially when the research involves "deeply personal topics," or specific audiences. Additionally, Facebook is requiring their engineers to be trained in research ethics. These announcements create conflicting audiences. While many only see this as a first-step, supporters like OKCupid claim that Facebook's past research is similar to most other social networks.
Apple is negotiating a deal with record labels in an attempt to break the "$10 a month price-point." If the company wins the deal, they will essentially do what Amazon did with books and start a price war. Apple's deal asks that users who stream music will only pay $7 a month for their services, compared to Spotify's $10 a month deal. It will be interesting to see if Apple succeeds and profits, especially considering that Spotify is in the red and not profiting at $10 subscriptions.
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