Amazon to acquire video doorbell maker Ring
geekwire.com
geekwire.com
* How many people search specifically for the brand Ring
* If a knockoff appears first do people buy that instead
* What is the growth in searches and purchases overall
* Why do people return the product
These are things even Ring wouldn't know. Its not too far fetched to think you could build a valuation engine off the information Amazon has and compare the cost of cloning the product line to acquiring the company automatically.
Eg. We may want to buy this company. Let's make their product appear after competitors and see how strong sales remain.
How could they even be? For example Amazon might only stock four of six brands of video doorbell, so they're not going to be able to return neutral results.
Same can be said of any vertical integration
I guess Mr. Wonderful found out and called them up to invest later. Plated just got sold to Albertsons for 300m, and O’Leary claims to have made 1300%+ return on his investment.
Poor Mark.
I love the show, I don’t think any of the sharks are “dumb money,” but I don’t think it’s an accurate representation of what a good investment for most businesses should look like.
- It's one pitch per episode, which allows a bit more depth
- It's narrated, which let's the host cut in to explain nuances
- They circle back to find out what happened after the pitch if the investments actually close
- No gimmick companies
- No Kevin O'Leary
[1] https://www.telegraph.co.uk/finance/4467013/Mattel-sale-ends...
So, honestly, what do "good investments" look like then?
If anything I think the only problem with shark tank's portrayal of investments is it that it doesn't explain to the audience that it's wide viewership is the largest return for most of the founders on the show. Every founder who goes on the show knows this, but it's the "dirty little secret" that the audience isn't aware of.
It's just dressed up advertising, it's not about investing or business by any flip of the coin.
> Siminoff says a Ring customer happened to be vacationing at Branson's island a couple of months ago. He used Ring to talk to a UPS delivery guy who was at his home in San Francisco. Branson, who happened to be next to that person, saw the interaction and was immediately hooked by the product.
> In fact, Branson liked it so much that he asked for Siminoff's email address and soon started talking business with Siminoff. He wanted to invest in the product.
> In less than 48 hours, Branson agreed to join the round. And on Wednesday, Ring made it official: a $28 million funding that gives it a $60 million valuation.
Source: http://www.businessinsider.com/ring-from-shark-tank-to-richa...
Having cameras and microphones in your house and your neighborhood is a small part of that.
When I walk into a friends home who has an Alexa, or a Ring system, it is now tracking me too.
The purchaser consented, but I never consented to being monitored in a residence/dwelling where I would otherwise have the reasonable expectation of privacy!
There was a good Gizmodo article about this called The House That Spied on Me [1].
[1] https://gizmodo.com/the-house-that-spied-on-me-1822429852
https://www.theverge.com/2017/4/5/15188636/microsoft-windows... https://www.theverge.com/2018/1/24/16927056/microsoft-window...
I'm worried about the access that nation-states security teams have distributed across the entire set of poorly secured, 0-day infested monitoring devices everywhere.
20 years ago I laughed at how infeasible Enemy of the State was, but now it seems feasible (with added drones).
Even the "enhance/sharpen" part seems feasible if everything is packing HD/4k feeds.
Amazon is in that stage of power where they are still beneficial and innovating, kinda like Microsoft with the desktop/internet in the 90s and AT&T with their labs that made C++ and the modern application/software in the 80s, even Apple in the 00s with the smart phone and their power. I think when Amazon stops innovating or get to the state where they aren't fully research and development focused, that is where you have to worry when revenues get tight and they have to start selling your private data. Right now ONLY Amazon wants that from this acquisition, they don't want anyone else to have it, Ring probably would have had to let others have it earlier.
I have a variety of WiFi cameras, all of which are on a dedicated WiFi network that cannot access the internet. I use Zoneminder to handle the recording, motion detection, etc. Zoneminder is pretty versatile, but it’s ultimately up to the camera to provide a compatible method of access - RTSP works well for cameras that support it, but if you have a URL on the camera that will return a JPEG that will work too.
Most of my cameras are low-end D-Link models, they work fine with Zoneminder. I recently got an Amcrest camera which, after some cajoling, works very well with Zoneminder. Using a JPEG URL that Zoneminder polls never worked for some reason, but RTSP worked perfectly.
If you want to go this route, look for evidence that other people have gotten the model you’re interested in to work with software like Zoneminder, Blue Iris, or iSpy. Generally this means that the camera supports open standards that you can use in your system.
If you don’t want to go the Zoneminder route, some cameras can do a lot of the work internally. All of my cameras, for example, have some degree of motion detection and the ability to upload files to an FTP server or send an email. The biggest challenge here is that none of these cameras can be configured to do this without either a Java Applet or a vendor-provided browser plugin to view the live video and define the detection zones and parameters.
> All of my cameras, for example, have some degree of motion detection and the ability to upload files to an FTP server or send an email.
Am I missing something?
Upon rereading my comment, it could have been structured differently to make that clearer.
For my wife, who's less tech saavy, I keep a couple nest cams handy :)
"I'll make them pay for it. Enjoy it even." replied O'Brien
That's how the book should've ended.
https://www.axios.com/amazon-buying-video-doorbell-company-r...
I imagine there are a decent chunk of Ring customers who would have not purchased the device had it been sold by Amazon in the first place.
I have a hard time feeling too much sympathy for these people. The inevitable conclusion for most of these heavily-vc-funded home automation startups is an acquisition by one of the tech giants. If you are boycotting the tech giants for whatever reason, you should therefore be boycotting any startup that might be an acquisition target.
also, if you're putting video cameras in your home that push footage to a server you don't control (or even one that you do) i'm not sure you can call yourself privacy conscious.
You're right that this was an obvious outcome, in retrospect. I wonder what percent of their customers saw this coming. My sense is that they're not just selling to early adopters now—my retired aunt has been telling me about Ring for quite some time.
> If you are boycotting the tech giants for whatever reason, you should therefore be boycotting any startup that might be an acquisition target.
Huh, so if I avoid FB then I shouldn't use anything that they might acquire? Seems kind of tough, since they go out and buy things like Oculus, which was a bit out of left field.
if you can be understanding about a company you don't like acquiring one you do, then buy whatever. just don't be shocked when a startup follows the same route as literally every other startup.
There’s also some premium to be had for tight integration options - current Ring doorbell owners would likely opt for a Ring indoor camera (if one existed) versus competitor’s, just to avoid the hassle of dealing with two apps and paying for two subscription plans.
Bonus points for "the neighbor kid just stole your package" alert.
Facial recognition is rather trivial and common-place these days I suppose but the association of that face with your neighbor's kid seems to take it a step further into invasive territory.
Or was that Google? It's so hard to keep track of all the new toys that big tech companies keep buying. Either way, talk about a full-court press on getting devices into your home.
Hardware startups have been bought before. This isn't a unique event.
I worked for a hardware startup for a couple of years and VCs being cautious about the category is very well deserved.
It is easily an order of magnitude harder to develop a successful hardware product than a success software product. And even after you've sold a million of them a design defect could show itself that makes all million of them break and destroys your entire company overnight.
It's doable but very hard.
Hardware is pretty freaking hard. Just look at recent examples of public hardware companies: FitBit / GoPro. Both doing like crap, struggling to maintain their grab on the market and looking for acquirers.
Honestly, I think this is a very unattractive sector, at least in this side of the world. Most serious hardware contenders are and will keep coming from China (DJI, Xiaomi, Yi, etc).
Disclaimer: I work for Fitbit but speak only for myself.
https://www.crunchbase.com/organization/ring#section-locked-...
Looking at that it looks like at least $200 million in funding was raised. The kinds of exits for software companies that have raised over $200 million generally look very different.
To get a video and photo ID of every person, living at an address? Then they will run this through a face recognition deep learning AI, to get a digital facial ID of everyone.
Now, they just one-upped Facebook. Where they know who lives where, and what type of person they are. Male, female, young, old, skinny, fat, short, tall, ethnicity, clothing style preferences, music preferences, healthy or sick.
Now, you don't even need to fill out those advertising questionnaires on who you are. Amazon will just collect it automatically from this Ring doorbell camera.
Now, they have a definitive demographic information on you, for targeted advertising. They can either email you, or snail mail you. Since now, they know exactly who you are. As well as who else lives with you.
And when you sign onto Amazon, the ads will be targeted directly at you.
1. Hey, it looks like you have a daughter at home. Do you want to buy her a nice little necklace for Christmas? We have a nice selection on sale here.
2. Or if you are black. Hey, if you spend $20 on Amazon today, we can get you free movie tickets to see the new Black Panther movie.
3. Or if you are Asian. Hey, there is a new Chinese restaurant opening up in your area. Spend $50 on Amazon today, and we can get you a free lunch special.
https://seekingalpha.com/news/3332326-information-amazon-off...
The number one use I seem to see from it is people taking video and posting it on nextdoor (package thief alert, car prowler alert, etc.) followed by other people talking about how the neighborhood is going downhill and lamenting about how the police don't do anything with their Ring video.
I guess this is my attitude on most of the home security field. It always seems like the devices have a ton of false positives that just give the owners something else to worry about, and the companies that sell these things continue to do so because it gives owners the illusion that buying these devices give them some sort of control.
The current existing solution either have really poor quality, are complicated to install (require technician), and don't integrate with your smartphone.
I'm not talking about the Ring specifically, there are other competitors too such as Nest Hello, but the idea seems pretty straight-forward and valuable to anyone with a door.
2) Seeing who is at the door without potentially having let them know that you're there. In my house, there are glass windows to both sides of the door. I cannot go look through the peep hole without them know I am there. I purchased one after I had several days of a person (people?) ringing my doorbell in between 3 AM and 5 AM, then driving around the neighborhood slowly in their car. I certainly wasn't going to go answer it or announce my presence in case something sketchy was going on.
3) Communicating with someone at the door if you need to. I sleep late on weekends - sometimes I need to sign for a package. With the ring, I can let them know that I'm there and just need to throw on some clothes, rather than them leaving. Or if I'm in the restroom.
4) I want to keep an eye on the front porch while I'm gone, and get alerts on motion detection. I can catch some neighborhood kids being stupid, or something stealing a package, etc etc.
5) If they're leaving a package that isn't signature required, and I'm not home, I can ask them to put it behind the bushes, etc.
Does this acquisition allows them to take their Amazon Key service (Cloud Cam + service + tech) to the next level?
A while back a friend of mine bought one of these "cloud"-connected doorbells, and hadn't even considered the privacy implications. After I explained it to him, he thankfully returned it and went back to using a normal doorbell.
People who install these should be forced to install a sign just outside of the camera's view informing visitors that, by proceeding to the door, they agree to Amazon/Google/whoever's privacy policy and ToS.