FILE – This Feb. 25, 2020, file photo, shows the icon for TikTok in New York. President Donald Trump will order China‚Äôs ByteDance to sell its hit video app TikTok because of national-security concerns, according to reports published Friday, July 31, 2020. ‚ÄúWe are looking at TikTok,” Trump told reporters Friday at the White House. “We may be banning TikTok.‚Äù (AP Photo/File)
Facebook’s Instagram is officially launching its answer to the hit short video app TikTok — Instagram Reels.
The new Instagram feature will let users record and edit 15-second videos with audio, and will let users add visual effects. Users will be able to share Reels with followers in Instagram in a dedicated section called Reels in Explore, or in the Story feature where posts disappear after 24 hours.
The Reels option will be available in the Instagram app. The company has been testing Reels in Brazil since November and in France, Germany and India since earlier this summer.
Facebook has a long tradition of cloning competitive services. The Instagram “Story” feature, which lets people share photos and videos that expire in 24 hours, is similar to Snapchat. Facebook CEO Mark Zuckerberg faced tough questioning about the company’s habit of copying rivals before a congressional hearing on July 29.
Facebook earlier launched a TikTok knockoff called Lasso in 2018, but closed that down in July. It also tried services similar to Snapchat called Slingshot and Poke before Instagram Stories caught on. But those were separate apps — it might have more success with a feature built into Instagram.
In fact, copying Snapchat’s features was successful for Instagram in part because Snapchat was difficult to figure out for new users. They were already comfortable with Instagram. But TikTok is very easy to use — easier than Instagram — and part of its appeal is that you’re able to sit back and scroll endlessly with just swipes, without the need to follow anyone or post anything.
Even with the success of Stories, Snapchat remains popular with younger people, though the Instagram feature has likely limited its growth. Snapchat has more daily users than Twitter.
For Reels to succeed, Facebook will have to lure video creators away from TikTok. This might be easier to do with Reels since many creators are already on Instagram. In response to published reports that Instagram is paying TikTok influencers to join Reels, Instagram said in a statement that the company “have a long history of reaching out to emerging creators and working to break new stars on Instagram.”
“As with previous products, we remain committed to investing in both our creators and their overall experience, and in certain cases, we may help cover production costs for their creative ideas,” the company said.
TikTok, in turn, launched a $200 million “creator fund” in July that it says will grow to over $1 billion in the U.S. in the next three years and more than double that globally, to pay video creators for their material.
TikTok, however, is under fire, possibly opening an opportunity for Facebook.
Microsoft is in talks to buy part of TikTok in what would be a forced sale, following threats from President Donald Trump to ban the Chinese-owned video app, which claims 100 million U.S. users and hundreds of millions globally.
Experts think Facebook has an opportunity to lure in young users with Reels, but its success is not guaranteed.
“Social media users, especially younger users, tend to use social platforms for different things,” said eMarketer analyst Debra Aho Williamson. This means Snapchat to message friends privately, Facebook to keep up with school groups or check up on parents and grandparents, Instagram to follow their passions and TikTok for entertainment.
“Instagram has put a lot of effort into developing Reels and making it attractive to TikTok users and the creators who work on the app, but I’m not sure it can replace TikTok,” Williamson added. “Even if TikTok were to be banned in the U.S. (which I think is unlikely to happen), users would find a way to keep using it. They are incredibly loyal and protective of TikTok.”
Since early July, some TikTok users have been posting videos urging viewers to follow them to other platforms like Instagram, reflecting the threat of a TikTok ban. Mary Keane-Dawson, Group CEO at the influencer marketing agency Takumi, said the creators she works with have been sad, angry and upset about the threat of a ban. Still, they’re “pragmatic,” she said, and the smart ones were already active on TikTok, Instagram and YouTube.
Reels is debuting in over 50 countries, including the U.S., the U.K., Japan, Australia and others, as well as officially launching in the test countries — Brazil, France, Germany and India.
Instagram has more than a billion users worldwide.
TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.
Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.
Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).
SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.
The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.
WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.
SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.
SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.
SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.
The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.
Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.
“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.
“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”
Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.
On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.
If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.
These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.
If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.
However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.
He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.
“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.
Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.
The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.
Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.
Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.
Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.
Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.
Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”
In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.
“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.
This report by The Canadian Press was first published Nov. 12, 2024.
TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.
The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.
The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.
RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.
The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.
RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.
This report by The Canadian Press was first published Nov. 12, 2024.
