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Big tech companies are looking at Hollywood as the next stage in their play for the cloud

This week, both Microsoft and Google made moves to woo Hollywood to their cloud computing platforms in the latest act of the unfolding drama over who will win the multi-billion dollar business of the entertainment industry as it moves to the cloud.

Google raised the curtain with a splashy announcement that they’d be setting up their fifth cloud region in the U.S. in Los Angeles. Keeping the focus squarely on tools for artists and designers the company talked up its tools like Zync Render, which Google acquired back in 2014, and Anvato, a video streaming and monetization platform it acquired in 2016.

While Google just launched its LA hub, Microsoft has operated a cloud region in Southern California for a while, and started wooing Hollywood last year at the National Association of Broadcasters conference, according to Tad Brockway, a general manager for Azure’s storage and media business.

Now Microsoft has responded with a play of its own, partnering with the provider of a suite of hosted graphic design and animation software tools called Nimble Collective.

Founded by a former Pixar and DreamWorks animator, Rex Grignon, Nimble launched in 2014 and has raised just under $10 million from investors including the UCLA VC Fund and New Enterprise Associates, according to Crunchbase.

“Microsoft is committed to helping content creators achieve more using the cloud with a partner-focused approach to this industries transformation,” said Tad Brockway, General Manager, Azure Storage, Media and Edge at Microsoft, in a statement. “We’re excited to work with innovators like Nimble Collective to help them transform how animated content is produced, managed and delivered.”

There’s a lot at stake for Microsoft, Google and Amazon as entertainment companies look to migrate to managed computing services. Tech firms like IBM have been pitching the advantages of cloud computing for Hollywood since 2010, but it’s only recently that companies have begun courting the entertainment industry in earnest.

While leaders like Netflix migrated to cloud services in 2012 and 21st Century Fox worked with HP to get its infrastructure on cloud computing, other companies have lagged. Now companies like Microsoft, Google, and Amazon are competing for their business as more companies wake up to the pressures and demands for more flexible technology architectures.

As broadcasters face more demanding consumers, fragmented audiences, and greater time pressures to produce and distribute more content more quickly, cloud architectures for technology infrastructure can provide a solution, tech vendors argue.

Stepping into the breach, cloud computing and technology service providers like Google, Amazon, and Microsoft are trying to buy up startups servicing the entertainment market specifically, or lock in vendors like Nimble through exclusive partnerships that they can leverage to win new customers. For instance, Microsoft bought Avere Systems in January, and Google picked up Anvato in 2016 to woo entertainment companies.

The result should be lower cost tools for a broader swath of the market, and promote more cross-pollination across different geographies, according to Grignon, Nimble’s chief executive.

“That worldwide reach is very important,” Grignon said. “In media and entertainment there are lots of isolated studios around the world. We afford this pathway between the studio in LA and the studio in Bangalore. We open these doorways.”

There are other, more obvious advantages as well. Streaming — exemplified by the relationship between Amazon and Netflix is well understood — but the possibility to bring costs down by moving to cloud architectures holds several other distribution advantages as well as simplifying processes across pre- and post-production, insiders said.

 

Shared housing startups are taking off

When young adults leave the parental nest, they often follow a predictable pattern. First, move in with roommates. Then graduate to a single or couple’s pad. After that comes the big purchase of a single-family home. A lawnmower might be next.

Looking at the new home construction industry, one would have good reason to presume those norms were holding steady. About two-thirds of new homes being built in the U.S. this year are single-family dwellings, complete with tidy yards and plentiful parking.

In startup-land, however, the presumptions about where housing demand is going looks a bit different. Home sharing is on the rise, along with more temporary lease options, high-touch service and smaller spaces in sought-after urban locations.

Seeking roommates and venture capital

Crunchbase News analysis of residential-focused real estate startups uncovered a raft of companies with a shared and temporary housing focus that have raised funding in the past year or so.

This isn’t a U.S.-specific phenomenon. Funded shared and short-term housing startups are cropping up across the globe, from China to Europe to Southeast Asia. For this article, however, we’ll focus on U.S. startups. In the chart below, we feature several that have raised recent rounds.

Notice any commonalities? Yes, the startups listed are all based in either New York or the San Francisco Bay Area, two metropolises associated with scarce, pricey housing. But while these two metro areas offer the bulk of startups’ living spaces, they’re also operating in other cities, including Los Angeles, Seattle and Pittsburgh.

From white picket fences to high-rise partitions

The early developers of the U.S. suburban planned communities of the 1950s and 60s weren’t just selling houses. They were selling a vision of the American Dream, complete with quarter-acre lawns, dishwashers and spacious garages.

By the same token, today’s shared housing startups are selling another vision. It’s not just about renting a room; it’s also about being part of a community, making friends and exploring a new city.

One of the slogans for HubHaus is “rent one of our rooms and find your tribe.” Founded less than three years ago, the company now manages about 80 houses in Los Angeles and the San Francisco Bay Area, matching up roommates and planning group events.

Starcity pitches itself as an antidote to loneliness. “Social isolation is a growing epidemic—we solve this problem by bringing people together to create meaningful connections,” the company homepage states.

The San Francisco company also positions its model as a partial solution to housing shortages as it promotes high-density living. It claims to increase living capacity by three times the normal apartment building.

Costs and benefits

Shared housing startups are generally operating in the most expensive U.S. housing markets, so it’s difficult to categorize their offerings as cheap. That said, the cost is typically lower than a private apartment.

Mostly, the aim seems to be providing something affordable for working professionals willing to accept a smaller private living space in exchange for a choice location, easy move-in and a ready-made social network.

At Starcity, residents pay $2,000 to $2,300 a month, all expenses included, depending on length of stay. At HomeShare, which converts two-bedroom luxury flats to three-bedrooms with partitions, monthly rents start at about $1,000 and go up for larger spaces.

Shared and temporary housing startups also purport to offer some savings through flexible-term leases, typically with minimum stays of one to three months. Plus, they’re typically furnished, with no need to set up Wi-Fi or pay power bills.

Looking ahead

While it’s too soon to pick winners in the latest crop of shared and temporary housing startups, it’s not far-fetched to envision the broad market as one that could eventually attract much larger investment and valuations. After all, Airbnb has ascended to a $30 billion private market value for its marketplace of vacation and short-term rentals. And housing shortages in major cities indicate there’s plenty of demand for non-Airbnb options.

While we’re focusing here on residential-focused startups, it’s also worth noting that the trend toward temporary, flexible, high-service models has already gained a lot of traction for commercial spaces. Highly funded startups in this niche include Industrious, a provider of flexible-term, high-end office spaces, Knotel, a provider of customized workplaces, and Breather, which provides meeting and work rooms on demand. Collectively, those three companies have raised about $300 million to date.

At first glance, it may seem shared housing startups are scaling up at an off time. The millennial generation (born roughly 1980 to 1994) can no longer be stereotyped as a massive band of young folks new to “adulting.” The average member of the generation is 28, and older millennials are mid-to-late thirties. Many even own lawnmowers.

No worries. Gen Z, the group born after 1995, is another huge generation. So even if millennials age out of shared housing, demographic forecasts indicate there will plenty of twenty-somethings to rent those partitioned-off rooms.

The makers of the virtual influencer, Lil Miquela, snag real money from Silicon Valley

Brud, the actual company behind one of Instagram’s most popular virtual influencers (it’s a thing), has raised millions of dollars from Silicon Valley investors because this is 2018 and everything is awful.

Last week, the Los Angeles-based startup led by Trevor McFedries, outed itself as the collective consciousness behind the virtual celebrity Lil Miquela and her less well known contemporaries Blawko22 and BermudaisBae in a choreographed melodrama worthy of Los Angeles’ best reality television.

i am deeply invested in the drama surrounding lil miquela and now you all have to be too. sorry!!! https://t.co/ta1T4rDFGz

— maya kosoff (@mekosoff) April 19, 2018

The subject of numerous glowing profiles in online and print fashion and lifestyle magazines (including, most recently, in High Snobiety), Lil Miquela’s stardom (and her fellow avatars) fascinated because the characters’ creators coyly toed the line around “her” self-awareness and their own. In the process, they created a sensation that’s become well-known worldwide.

It’s less well-known that the company is backed by some of the biggest names in venture capital investment — firms like Sequoia Capital. Our sources put the company’s funding somewhere around $6 million in its recent funding round.

There are other notable investors from Silicon Valley and New York rumored to be in the round — like New York’s BoxGroup and the Bay Area’s SV Angel. Sequoia declined to comment for this article and Box Group’s David Tisch did not respond to a request for comment.

All of the virtual drama with Miquela started late last week when news outlets (including TechCrunch) reported that Miquela’s Instagram account (or that of her handlers) was hacked by operators of a social media account belonging to another virtual personality known as “Bermudaisbae” (a more right wing social media persona with fewer followers).

McFedries, brud‘s founder and chief executive, confirmed that the Miquela account had been hacked in a text exchange with me, writing, “some redditor idiots hacked the page we think.”

That was a lie.

The account “hack” was architected by brud as part of an ongoing virtual reality drama playing out on Instagram and other social media platforms between avatars it had developed, all designed to attract media attention, according to people with knowledge of brud and its plans. It worked. 

McFedries has not responded to further requests for comment after confirming that the Miquela account was “good”.

One Los Angeles investor familiar with the company said brud was “using conflict to introduce new characters… same as the Kardashians always have.”

The investor added that two years into the development of the Miquela persona, brud‘s founders knew that the fad could lose some of its luster as the is-she-or-Isn’t-she-real tension dissipates under the weight of continuously thwarted expectations — like a post-modern twist on the will-or-won’t-they dramatic tension defining most sitcoms since Cheers.

“People aren’t going to buy that she’s human so they make it seem as if she’s had an existential crisis and now she is the first in a breed of conscious AR characters that they will build a world around,” this investor wrote. “[Manufacturing] social influence.”

Blawko22 and Lil Miquela imposed over a gas station exterior simulating a pit stop on the road to Coachella

For his part, the 33-yar-old McFedries had been manufacturing social influence in Los Angeles through his talents as a dj, producer and director before entering the startup world.

First under the name of DJ Skeet Skeet and then as DJ Skeeter, and, finally, Yung Skeeter, McFedries has worked or performed with a number of the world’s best selling recording artists including Chris Brown, Ke$ha, and Katy Perry (and — interestingly — more obscure acts like Bonde do Role).  

Working as an an “artist advocate” for Spotify, a DJ for a radio show on iHeartRadio, and as a spokesman for VitaminWater sustained McFedries along with managing the career of BANKS and executive producing her first album and a single on Azealia Banks’ 2014 record “Broke with Expensive Taste” — at least according to a Wikipedia page on Yung Skeeter. 

Around this time McFedries also began investing in companies, according to AngelList.

Roughly two years after the Banks record release, Lil Miquela made her first appearance on Instagram. And the rest is history as written in Internet archives and memes. Ephemeral, but infinite.

The project that brud seems to be pursuing — turning celebrity into a virtual commodity; commenting on the unreality of the “real” entertainment industry by literally creating an unreal celebrity — is fascinating.

There’s certainly a valid criticism to be made about the ways in which celebrity operates, the ways in which our “social” media has corroded society, and the unbridled power of these platforms to transform messengers and their messages into movements.

Perhaps brud wants to make these critiques through its very existence — or at least use its low-brow as high-brow (or is it vice versa?) intellectual appeal as a veneer over the more crass (but potentially honest) mission of selling more shit more effectively through the use of spokespeople whose views only change when their creators want them to (it worked for Hollywood’s star system). That at least gets sponsors and advertisers out of the potentially messy situations that can come from working with spokespeople whose actions can’t be controlled by software — or an ingenious marketing team.

In the High Snobiety profile-as-honors-senior-English-thesis on Lil Miquela published yesterday, the avatar’s own spokesperson was quoted as saying:

“The internet is endlessly powerful, and that power has been wielded in many ways. It feels like we’re not going to put the genie back in the bottle, so we’ve got to learn how to leverage these tools in positive ways. I’ve used my platform to raise real money for important organizations throughout LA and I’ve seen lives changed as a result. I think the only chance we’ve got is to collectively teach our loved ones how to think critically and how to spot misinformation. I know that we can manifest the change we want to see, and the internet can be a part of that.”

It’s a lofty goal backed by a number of inarguably good works. However, lying to reporters may not be the best way to continue trying to achieve it.

Southern California needs to find its hub for it to develop its own tech ecosystem

Recognizing the tens of billions of dollars that the Southern Californian region leaves on the table, because it hasn’t taken its rightful place in the American technology industry, a new group called  the Alliance for Southern California Innovation has just released a report to analyze how SoCal can work to assume its pole position.

Through interviews with 100 leaders of the technology ecosystem and an analysis of venture capital funding for the region, the organization has concluded (with the help of the Boston Consulting Group) that the promise of a regional rival to Northern California’s silicon valley won’t be fulfilled without the establishment of a geographic hub and a willingness to overcome regional differences.

Founded by Steve Poizner last year to accelerate the growth of a startup entrepreneurial ecosystem in Southern California, The Alliance is building a network of investors, entrepreneurs and universities to provide ballast in the south to the dominance of the Northern California tech industry.

The Alliance estimates that Southern California’s tech community could be one-third the size of Silicon Valley’s by supporting or further developing the six pillars it already has for innovation to occur.

The potential impact making these changes could have is an added 200,000 new jobs and growth of $100 billion for the whole economic region.

“Over the past several years we have observed a significant decrease in startups leaving SoCal,” said Greg Becker, CEO of Silicon Valley Bank . “We’ve also seen a substantial inflow of venture capital from all over the world.”

In fact, as is well-reported, the luster of Silicon Valley is fading. As BCG writes in its report:

The good news for SoCal and any region with tech ambitions is that the Bay Area has in some ways been too successful. Our research revealed a saturation level causing unprecedented challenges, starting with exorbitant housing prices and runaway operating costs that accelerate a startup’s “burn rate”—its monthly spending.

Los Angeles investor Mark Suster, a general partner with Upfront Ventures, has been beating the drum for Los Angeles as a new tech hub for a while — and billion dollar exits for Ring and Dollar Shave Club, in addition to the public offering for Snap, lend credence to his position.

Suster has also noted for years that the region produces more technology doctorates than any other geography in the United States. Caltech generates more patents than any other university while UCLA boasts more startups founded by its graduate than any other school in the nation. Meanwhile, UCSD in San Diego has a deep bench of biotechnology expertise stemming from its proximity to the Sanford Consortium for Regenerative Medicine, the Salk Institute, and the Scripps Research Institute.

However, to thrive, BCG recommends taking six steps to bolster the the ecosystem and its chances to begin to catch up to Silicon Valley.

The consulting firm says that Southern California needs more local venture capital; the individual geographies need to work to promote their regional strengths; regions need to collaborate more closely with each other; founders need to start gunning for that IPO slot instead of taking acquisition offers; the region’s commitment to diversity needs to be emphasized; and finally the embarrassment of entrepreneurial riches needs to be promoted abroad.

“Southern California is a region of extreme innovation; however, it is so spread-out, making it hard to navigate,” said Steve Poizner founder and board chair of the Alliance, in a statement. “We believe by finding, filtering and aggregating exciting startups from top universities, research institutes, and incubators/accelerators, we can demonstrate the combined strength of SoCal in a compelling way to top investors and thought leaders.”

LAPD warns that navigation apps are steering people to neighborhoods on fire

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There are currently multiple fires raging across Southern California, one of which forced the notoriously clogged 405 Freeway in Los Angeles to shut down

Big fires force people to find new routes — including people using apps like Waze and Google Maps. 

The problem? Those apps look for roads without many cars on them, and try to route you there. Which is great when you’re trying to avoid run-of-the-mill traffic. But not when the roads are clear because of nearby fires.  

“The Los Angeles Police Department asked drivers to avoid navigation apps, which are steering users onto more open routes — in this case, streets in the neighborhoods that are on fire,” the Los Angeles Times reportedRead more…

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Bright pink houses attract crowds looking for the perfect selfie, and the neighbors are pissed

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These houses in Los Angeles are so pink the entire internet seems to have noticed. Everything from the walkway to the hedges to the trash bins are bright pink.

It’s not a permanent look. The vacant LA homes are part of a large-scale art piece, and they’re being demolished to make way for a new housing complex

Neighbors are not pleased with the stunt and the “noise” they are attracting. Everyone wants to pose with the absurdly pink structures, as you can tell by browsing photos on Instagram tagged with #pinkhouses.

More about Art, Los Angeles, Development, Housing, and Art Installation

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American paparazzi confuse Deepika Padukone with Priyanka Chopra and she isn't amused

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They’re both bonafide Bollywood stars. They’re both pursuing Hollywood. They’ve both appeared on the same talk shows. They’ve both attended the Oscars. 

But dear paparazzi, they are NOT the same! 

For the second time, the American media has mistaken Deepika Padukone of xXx: Return of Xander Cage fame with Priyanka Chopra of Quantico fame. 

First, when promoting xXx, which also starred Vin Diesel, and now, at Los Angeles International Airport where shutterbugs lined up to welcome Padukone with chants of “Hi, Priyanka” and “Priyanka, welcome back!” Read more…

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Update: The Future of HOME

Here’s a brief audio update on the immediate future of HOME: Stories From L.A. The TL;DR version is, I’m slowing down the production schedule to make the project more sustainable over the long term. Give a listen for a little more background on the hows and whys of it all. The show returns this spring for Season 5, and in the meantime, the archive is a great way to load up your podcatcher. (Oh, also: I’m looking for a social media/publicity ninja; if that’s you, drop me a line.)

HOME is a proud member of the Boing Boing Podcast Network

Subscribe: iTunes | Android | Email | Google Play | Stitcher | TuneIn | RSS

If you’re already a subscriber, many thanks. And if you have a minute to leave the show a short review at the iTunes Store it’d be much appreciated. 

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Yes, the new Rams coach is old enough to drink

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On a day when LA’s newest football team — the Chargers — stole most NFL headlines, the Los Angeles Rams made a big announcement of their own. 

The team hired 30-year-old Sean McVay as their new head coach, the youngest in NFL history. 

McVay, who turns 31 in a couple weeks, barely surpasses Alabama head coach Lane Kiffin as the youngest NFL head coach to date. Kiffin was 31 when the Raiders hired him in 2007. 

McVay spent seven seasons on Washington’s coaching staff, most recently as offensive coordinator. Given his age and boyish charm, Twitter had some pretty great jokes to accompany the Rams’ new hire.  Read more…

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This city is fighting sexual harassment on the subway with a 24/7 hotline

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If you are female and have ever ridden a train or bus, sexually inappropriate gestures, words and even contact are things you might be all too familiar with.

Now the Los Angeles public transit system will be the first in the world to address this problem by offering its riders a 24/7 hotline for sexual harassment, according to a statement from the LA County Metropolitan Transportation Authority

When riders call 1-844-Off-Limits (633-5464), they can talk through the incident with a counselor from the organization Peace Over Violence and receive the resources and information necessary to report it to the police. The group has counseled victims of sexual abuse in LA County and has hosted its own 24/7 hotline for survivors of rape and battery for over 45 years. Read more…

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