Google's money churning ad engine sputters in rough economy

SAN FRANCISCO, United States - Google parent Alphabet reported quarterly earnings that fell short of market expectations as belts tightened in the digital ad market that drives its revenue.

Alphabet said it made a profit of $14 billion in the third quarter on ad revenue that grew just 6 percent to $69 billion when compared with the same period of last year.

Aside from one period at the start of the Covid pandemic, that would mark the weakest revenue growth at Alphabet for any quarter since 2014.

"When Google stumbles, it's a bad omen for digital advertising at large," said Insider Intelligence analyst Evelyn Mitchell.

"This disappointing quarter for Google signifies hard times ahead if market conditions continue to deteriorate."

Alphabet shares slipped 6.8 percent to $97.35 in after-market trades that followed the release of the earnings report.

Google's foundation in advertising on its heavily used search engine does give it an advantage, however, over other ad-reliant tech firms such as Meta, Snap and Twitter, the analyst added.

"Over time, we've had periods of extraordinary growth and then there are periods I viewed as a moment where you take the time to optimize the company to make sure we are set up for the next decade of growth ahead," Alphabet and Google chief Sundar Pichai said on an earnings call.

"I view this as one of those moments."

Alphabet chief financial officer Ruth Porat said the financial results in the quarter showed "healthy fundamental growth in Search and momentum in Cloud" computing revenue, but suffered from foreign exchange rates given the strong US dollar.

"We're working to realign resources to fuel our highest growth priorities," Porat said.

Big tech firms are grappling with multiple challenges, from inflation to the war in Ukraine, putting pressure on earnings.

Alphabet recruited throughout the pandemic, but announced a slowdown in hiring as ad revenue growth cooled this year.

"Within this slower headcount growth next year we will continue hiring for critical roles, particularly focused on top engineering and technical talent," Porat said.

Many other tech companies have decided to lay off staff, including Netflix and Twitter, or slow the pace of hiring, such as Microsoft and Snap. 

YouTube squeeze? 

Worsening the financial situation for Alphabet is the fact that Google tends not to aggressively promote advertising on its platform with tactics such as trying to convince businesses that online marketing is a smart move during tough economic times, said independent tech analyst Rob Enderle of Enderle Group.

"They don't like the idea of making their money off advertising, so they don't treat the market very well," Enderle contended.

"Now, you are seeing the adverse impact of not taking your revenue source seriously."

The earnings report also showed that ad revenue at YouTube was slightly lower than it was in the same quarter a year earlier, despite a hot trend of people watching video on-demand on the internet.

"Overall, I feel YouTube remains in a really good position to continue to benefit from the streaming boom," chief business officer Philipp Schindler said during an earnings call.

However, Alphabet noticed a "pullback in spending" by advertisers at YouTube in the quarter, Schindler told analysts.

"They have a ton of competition in video, and TikTok is probably hitting YouTube pretty hard," Enderle said.

Netflix last week reported that it gained subscribers in the recent quarter, calming investor fears that the streaming giant was losing paying customers.

The company said it ended the third quarter with slightly more than 223 million subscribers worldwide, up some 2.4 million, after seeing subscriber ranks ebb during the first half of the year.

The turn-around in subscriber growth comes as Netflix is poised to debut a subscription option subsidized by ads in November across a dozen countries.

Rival streaming platform Disney+ is to launch ad-subsidized subscriptions in December.

Agence France-Presse

Music fans spend more time listening to tunes during pandemic, says study

LONDON—Music fans globally are spending more time listening to tunes, about 18.4 hours a week on average, and have turned to their favorite artists for comfort during the COVID-19 pandemic, according to a survey published on Thursday.

IFPI, the recorded music industry's representative body, said the figure, which equates to listening to 368 3-minute songs, is up from 18 hours in 2019, with listeners mostly turning to subscription audio streaming, video streaming, the radio and short form video apps such as TikTok.

The "Engaging with Music 2021" study, described by IFPI as the largest of its kind, is based on the views of 43,000 music fans in 21 countries.

  

"The research finds that not only are fans listening to more music, but that they are also seizing opportunities to engage with new, dynamic, and immersive music experiences," IFPI Chief Executive Frances Moore said in the report.

"Fuelled by record labels’ investment, the incredible abundance and growth of music licensed to streaming services is driving this engagement...In addition, music has provided fans with comfort and healing through these challenging times."

Fans have resorted to streaming for the autonomy and choice, with music listening time through subscription audio streaming rising 51%, the study found, while 68% of those surveyed said they searched for specific songs more than once a week.

Short-form videos, livestreaming and in-game experiences were also popular: the study found one in three people saying they had watched a music livestream in the last year.

When it came to genres, more than 300 different kinds of music were named as music people listened to, with examples including electronic dance gqom, from South Africa, and axé, which originated in Brazil in the 1980s.

Around 87% said music lifted their spirits during the pandemic while 68% of 16- to 19-year olds said new releases from their favourite singers soothed them during the pandemic.

Highlighting the problem of unlicensed music, almost one in three people surveyed - or 29% - said they had used illegal or unlicensed methods to listen to or download tunes. (Reporting by Marie-Louise Gumuchian Editing by Mark Heinrich)

-reuters-

Popular live video streaming site Twitch confirms hack

Amazon's popular live video streaming platform Twitch said Wednesday hackers had broken into its network after reports of exposed confidential company data surfaced online.

The service, where users often stream live video game play, confirmed the break-in on Twitter.

"We can confirm a breach has taken place," Twitch said in post from its verified Twitter account.

"Our teams are working with urgency to understand the extent of this."

The statement came after reports emerged that a massive dump of Twitch data had been posted on fringe anonymous message board 4Chan. 

A post at 4Chan served up 125 gigabytes of data reported to include Twitch source code, records of payouts to streamers, and a digital video game distribution service being built by Amazon Game Studios.

It did not appear that personal Twitch user data was in the dump, but the extent of the hack was still being investigated.

Google searches for "how to delete Twitch" rocketed eightfold as news of the hack spread, according to marketing analysts firm N. Rich.

"With such a concerning data breach from a platform as widespread and global as Twitch, users are naturally wanting to protect themselves and their data as soon as possible," an N.Rich spokesperson said.

The person who posted the trove of stolen data left a message claiming the break-in was performed to foster competition in video streaming, and because the Twitch community "is a disgusting toxic cesspool," according to media reports.

Users of Twitch, the world's biggest video game streaming site, staged a virtual walkout last month to voice outrage over barrages of racist, sexist and homophobic abuse on the platform.

The phenomenon of "hate raids" -- torrents of abuse -- has seen the platform become increasingly unpleasant many for Twitch streamers who are not white or straight.

A Twitter hashtag, #TwitchDoBetter, has become a magnet for complaints over the past month, largely from female, non-white and LGBTQ players saying that Twitch is failing to stop internet trolls running amok -- all while taking 50 percent of streamers' earnings.

Twitch has maintained that it is working to improve tools for protecting accounts from abuses.

The service is suing two users in US federal court, accusing them of orchestrating the so-called "hate raids."

Agence France-Presse

YouTube says rule-breaking videos get scant views

SAN FRANCISCO, United States - YouTube on Tuesday said rule-breaking videos get looked at very little before being removed by the Google-owned platform.

YouTube added "Violative View Rate" to its quarterly transparency report to indicate what percentage of views come from content that violates its policies, and said the figure was a small fraction of a percent in the final three months of last year.

"It's a very low number," YouTube director of trust and safety Jennifer O'Connor said while briefing journalists.

"Of course we want it to be lower, and that's what my team works day in and day out to try to do."

The rate derived by sampling YouTube content indicated that violating content accounted for 16 to 18 of every 10,000 views on the platform, where the biggest category for rule breaking is typically spam, O'Connor said.

YouTube did not provide a breakdown of which rules were being violated by videos involved in the calculation.

Automated systems at YouTube detect 94 percent of violating content flagged, removing 75 percent of it before a video gets 10 views, according to the streaming platform.

Internal teams at YouTube have used the VVR as a metric for their efforts since 2017, and it has fallen some 70 percent as the company has invested in technology and workers to catch unwanted videos, O'Connor said.

More than 20,000 people at Google are devoted to keeping the platform safe, she added.

Google and YouTube are among internet services that have been hammered with criticism that they have not done enough to stop the spread of misinformation and other abuses that can cause real-world harm.

Since it started releasing community guideline enforcement reports in 2018, YouTube has removed more than 83 million videos and 7 billion comments, according to the service.

The VVR is calculated by sending samplings of videos on YouTube to reviewers to determine whether they violate policies in a system O'Connor touted as statistically reliable.

"By sampling, we gain a more comprehensive view of the violative content we might not be catching with our systems," YouTube said in a blog post.

"We believe the VVR is the best way for us to understand how harmful content impacts viewers, and to identify where we need to make improvements."

Agence France-Presse

Want to binge watch? New streaming TV services will make you wait

LOS ANGELES - In 2013, Netflix Inc shook up television by delivering 13 episodes of "House of Cards" in one batch, a move that helped popularize streaming video and fueled a culture of binge watching.

But Apple Inc, Walt Disney Co and AT&T Inc are largely rejecting that path as they prepare their own efforts to hook the online audiences that embraced Netflix.

Executives at AT&T's forthcoming HBO Max, a streaming service that will be unveiled to investors on Tuesday, plan to debut one new episode of its original series per week, Robert Greenblatt, chairman of WarnerMedia Entertainment and the company's direct-to-consumer business, told Reuters. That mirrors the traditional TV pattern.

"We like the idea that people watch weekly and look forward to the next episode and talk about it," Greenblatt said. "Newspapers write about the storylines. There is a sense of a shared experience."

Creating buzz around a new series will be crucial in the coming weeks and months as several companies jockey to lure customers and keep them paying a monthly fee over the long term.

HBO Max may make some exceptions, according to a source familiar with the company's strategy, by putting out a few episodes simultaneously to stoke initial interest.

Apple, meanwhile, will debut its subscription video service, Apple TV+, on Friday. For dramas "The Morning Show" and "See," and most other Apple series, the company will drop three episodes at the same time, followed by one per week.

The family-friendly Disney+ will unveil episodes weekly for new series including "The Mandalorian," the first live-action TV show set in the "Star Wars" universe. Disney+ will launch on Nov. 12.

'WAIT AND EXPERIENCE'

"Mandalorian" star Pedro Pascal said he believes the once-a-week approach will make watching the show "more romantic and more classic."

"Basically you get to sort of wait and experience more collectively, and it just makes it more event television, which it deserves to be," Pascal said.

"A little courtship never hurt anyone," added co-star Gina Carano.

But to some viewers, going a week after a dramatic cliffhanger "seems like it's old school," said Brett Sappington, principal analyst at Parks Associates.

"For some consumers, that can be frustrating," he said. "Expectations are just different today."

While it started among younger viewers, binge viewing of several episodes is now common among all age groups, Sappington said.

It also has been adopted by audiences around the world.

In surveys by Ampere Analysis, 69 percent of people in the United States said they frequently watch several episodes of the same TV show back to back. The percentage was 66 percent in Britain, 65 percent in France and 46 percent in Germany.

SPIKING AT DEBUT

Various release strategies can generate hits, according to data from Parrot Analytics, which measures global demand for programming. It found interest in binge-able series generally spikes when they debut and then tapers off, while shows released weekly see interest build over time. Both level off around 10 to 12 weeks.

HBO's "Euphoria," for example, released its first installment in June at the same time that Netflix dropped the entire season of "The Dark Crystal: Age of Resistance."

Global demand for "Dark Crystal" peaked in the first week after it premiered, while "Euphoria" saw steady increases after each episode came out, according to Parrot Analytics. It reached its highest point around the episode eight finale.

Both shows peaked with roughly 18 million daily "demand expressions," a combination of viewership, social media mentions and online research about the shows.

Even Netflix is experimenting with intervals between episodes. For reality competition "Rhythm + Flow," the company released four installments at first, three more a week later, and the final three a week after that.

Around the world, Netflix distributes roughly 35 shows on a once-a-week basis, Chief Content Officer Ted Sarandos said in October during the company's earnings webcast. While it does not release audience figures for most of its programming, Sarandos said Netflix customers preferred getting all episodes together.

"We actually get more viewing and cumulatively more social media buzz, more tweets, more activity on social media, around these shows for the all-at-once model," Sarandos said. 

(Reporting by Lisa Richwine; Additional reporting by Jane Ross in West Hollywood, California; Editing by Bill Tarrant and Cynthia Osterman)

source: news.abs-cbn.com

Streaming TV gears up for ad targeting

WASHINGTON - In the new world of streaming television, advertising is not going away, but is evolving to become more like marketing on the internet -- targeted to specific groups or individuals.

While some subscription streaming services including Netflix, Apple+ and Disney+ have pledged to be ad-free, others including those from WarnerMedia and NBCUniversal are expected to have some ad-supported options, as does Hulu.

Because these new platforms operate online, they will also be able to deliver targeted or "addressable" ads based on viewing habits, location and other data it may collect, in the same manner as Google and Facebook.

According to the research firm eMarketer, addressable TV ad revenue -- which includes some ads on traditional TV -- in the US is likely to grow from $1.5 billion in 2018 to $3.5 billion in 2021.

SMALLER PLAYERS

Streaming services are making it easier for smaller companies and marketers to get on television through self-serve ad platforms without the big budgets required for broadcast TV, according to eMarketer analyst Ross Benes.

"There are a lot of new companies coming into television advertising" as a result of streaming, Benes said.

"TV is still a place where you can get a massive amount of people's attention."

Roku, a television platform for many smart TVs, announced plans this month to buy dataxu, which provides automated self-serve ads for what is known in the industry as "over the top" or OTT services.

"TV advertising is shifting toward OTT and a data-driven model focused on business outcomes for brands," said Anthony Wood, chief executive officer at Roku. 

FRESH PRIVACY ISSUES

The rise of streaming could raise a fresh set of privacy concerns over how data on TV viewers is collected and shared across various platforms and devices.

A recent academic study found smart TVs, streaming dongles and other connected devices sending data to companies such as Netflix and Facebook.

"There is a small number of these cloud providers that are getting a lot of insight into what you're doing with these devices," said David Choffnes of Northeastern University, who led the research.

The researchers wrote that these devices "have the potential to learn and expose extensive information about their users and their surrounding environment. Much of this information has major privacy implications."

Alan Wolk, co-founder and lead analyst at the consultancy TVrev, said he expects streaming ads to be less intrusive than those which follow users around the internet.

"The TV industry has learned from digital that people find that kind of advertising creepy," he said.

Wolk said streaming services are aiming for fewer ads compared with broadcast television that will be "less painful" for viewers because they are more relevant.

An apartment dweller, for example, might not be interested in a lawn care ad and a 24-year-old may be turned off by messages for retirement. And advertisers will pay more if they know their messages are being delivered to people interested in their products.

"The ultimate goal is to be able to get fewer, better targeted ads that brands will pay more money for and consumers are happy to watch," Wolk said.

LIMITS OF TARGETING

Targeting for television has limits, however. It is never really clear which member of a family is watching a specific show, or whether it is seen live or recorded.

Charles Taylor, a marketing professor at Villanova University, said addressable TV advertising is on the rise, but that platforms are likely to be sensitive to consumer privacy concerns, and aware of new laws including a strict statute in California.

The California law, he said, "won't allow marketers to build data management platforms where they are merging data form various sources."

As a result, Taylor said the targeting is likely to be "behavioral," or based largely on viewing habits, without the detailed profiles that Facebook and Google use.

"Almost nobody would want health information shared; on the other hand most people don't mind more targeted ads based on their real preferences," Taylor said.

2020 POLITICAL ADS

Addressable TV advertising also opens up a new channel for political ads, potentially impacting spending in the 2020 US election campaign.

"I don't think there's any doubt this will play a role" in the election campaign, Taylor said.

"The databases out there are pretty effective at knowing someone's political affiliation and a well-built data management platform should be able to give you a good idea of which voters might potentially be swayed."

Mark Jablonowski, managing partner at the digital ad consultancy DSPolitical, said these new platforms may not be able to get the kinds of details of internet services, but that they may still be useful for candidates.

"For now the platforms are well suited to geographical targeting -- which can be quite powerful in politics," Jablonowski said.

"Candidates running in 2020 would be smart to include these platforms in their media mix because, at the end of the day, political advertising is all about getting in front of voters wherever and whenever possible."

source: news.abs-cbn.com

Netflix shares jump as subscribers grow ahead of Disney, Apple attack

Netflix Inc added slightly more paying subscribers than Wall Street expected in the third quarter, a relief to investors who had worried the company might fall short just as Disney and Apple prepare to ramp up the streaming video wars.

The results for July through September represented a rebound from the previous quarter when Netflix lost U.S. streaming customers for the first time in eight years and missed targets for overseas subscribers. Shares of Netflix rose 9.2% in after-hours trading on Wednesday to $312.69.

That performance, combined with concerns about new competitors, had weighed on Netflix shares, which had fallen 21% from the last earnings report through regular trading on Wednesday.

For the third quarter, Netflix was boosted by new seasons of shows such as "Stranger Things" and "13 Reasons Why." The company added 6.77 million paid customers around the globe, topping the nearly 6.7 million average expectation of analysts, according to IBES data from Refinitiv.

Netflix said it was on track to achieve full-year operating margins of 13% and was targeting another 300 basis point expansion in 2020.

Its total subscriber count topped 158 million.

Still, the company faces challenges.

"Netflix results were good enough that they assuaged concerns about price sensitivity and penetration levels in the domestic markets," said Fitch director Patrice Cucinello. "A caveat is that competition hasn’t hit yet."

The company projected it would pick up 7.6 million customers in the last three months of 2019. Analysts had expected a forecast of 9.4 million. The company will release a new installment of "The Crown" and Martin Scorsese film "The Irishman" during that time.

But it will face new competition starting in November from Disney+, a streaming service from Walt Disney Co that will be stocked with movies and TV shows from Disney's popular Marvel, "Star Wars," animation and other properties.

Apple Inc also will debut a much smaller streaming video service with original programming in November. AT&T Inc's HBO Max, and a new offering from Comcast Corp, are expected to enter the market next year.

Netflix argued that the new services would increase interest in the streaming video market broadly.

"In our view, the likely outcome from the launch of these new services will be to accelerate the shift from linear TV to on demand consumption of entertainment," the company wrote in a letter to investors.

Netflix acknowledged, however, that it was still taking a hit from price increases earlier this year in the United States. "Retention has not yet fully returned on a sustained basis to pre-price-change levels, which has led to slower U.S. membership growth," it said.

The most popular Netflix plan in the United States costs $13, nearly double the $7-per-month cost for Disney+. Apple TV+ will debut at $5 per month.

Netflix said its additional revenue would allow it to continue to invest "to further strengthen our value proposition."

For the third quarter, Netflix's net income rose to $665 million, or $1.47 per share, from $403 million, or 89 cents per share, a year earlier. That topped Wall Street's concensus target of $1.04.

Total revenue rose to $5.25 billion from about $4 billion. Analysts on average had expected $5.52 billion.

The debt that Netflix has amassed has sparked concern among some investors. The company said in the earnings report that it expected free cash flow to improve in 2020 and annually beyond that. In the meantime, Netflix will continue to tap the high-yield market as needed, it said.

In the next earnings report, Netflix will begin disclosing revenue and membership by regions - Asia Pacific, Europe, Middle East/Africa, Latin America and the United States, the company said.

source: news.abs-cbn.com

Disney report to shine spotlight on streaming war

SAN FRANCISCO - Quarterly reports next week from Walt Disney Co., CBS and Viacom will likely highlight increasing competition in video streaming and could spark volatility in the so-called communication services sector, which has outperformed since it was overhauled last year.

The S&P 500 communication services index has increased 20 percent so far in 2019, beating the S&P 500's 17-percent gain and all but 2 of 11 sectors - technology and real estate. That strong performance is in large part thanks to a recovery by Facebook Inc., as investors bet that the world's largest social network will keep growing, even as it faces regulatory hurdles.

June-quarter results from Disney, CBS Corp. and Viacom Inc. will keep investors fixated on a rising wave of competition in video streaming against market leader Netflix Inc. All those companies fall within the communication services sector.

Netflix's stock has sunk 14 percent since it reported on July 17 that it unexpectedly lost US subscribers in the second quarter, rattling investors already worried about the upcoming launch of Disney's streaming service.

Disney's family-friendly Disney+, set to launch on Nov. 12 with a slate of new and classic TV shows and movies, is viewed as the most dangerous threat to Netflix. Disney's shares hit a record high on Monday and have surged 28 percent this year.

"There is an analysis that has been going on among investors, looking at the number of subscribers Netflix has and the growth that Disney's service could put up in the next 3 or 4 years, and the huge disparity in the 2 companies' valuations," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

The recent increase in Disney's shares and decline in Netflix's show that investors expect Disney to significantly dent Netflix's leadership in streaming, Carlson said.

Disney's stock is trading at 22 times expected earnings, its highest forward earnings valuation since 2004, according to Refinitiv data. Netflix's forward earnings valuation has dipped to 66 from 82 in early July, before its disappointing quarterly report.

Smaller players CBS and sister company Viacom have also built advertising-supported and subscription video services to compete with Netflix, and they are providing original content to other distributors.

Beyond streaming, investors watching Disney's report on Tuesday will focus on its recent run of box office hits, including "The Lion King," which has increased Disney's lead position at the US box office. Disney owns the 5-highest grossing movies of 2019, led by “Avengers: Endgame” and “Captain Marvel.”

"The Netflix disappointment and the big Disney box office numbers underscore the importance of intellectual property, of ownership of content," said Jack Ablin, chief investment officer at Cresset Wealth Advisors in Chicago. Even though Netflix makes many of its own shows, it still relies on other producers, he said.

Netflix is losing its 2 most-watched shows in the United States - “Friends” and “The Office” - to upcoming rival services from AT&T Inc. and NBC Universal in 2020 and 2021, respectively.

Viacom and CBS, both controlled by the Redstone family’s National Amusements Inc., have worked out a management structure that would see Viacom Chief Executive Officer Robert Bakish leading the combined company if a merger deal is reached, sources familiar with the matter said on Friday, removing a major roadblock in talks to recombine the corporations.

In addition to looking for potential confirmation of that deal when CBS and Viacom report their results on Thursday, investors will focus on growth in CBS's All Access and Showtime streaming services.

Viacom could also give details about its strategy to sell programming to video streaming services, including its Paramount Television unit's "Jack Ryan" TV series, based on the character created by author Tom Clancy, which premiered last year on Amazon Prime.

Long viewed as stodgy stocks for dividend-oriented investors, the telecom services sector was renamed communication services last September and supercharged with internet heavyweights Alphabet Inc., Facebook, Netflix and Twitter Inc., along with videogame makers.

It was the biggest shakeup of the Global Industry Classification Standard, or GICS, since it was created in 1999. It has gained 5 percent since then, while the S&P 500 is unchanged over the same period.

CBS and Viacom have both gained about 15 percent in 2019.

Helped by its $71-billion acquisition of 21st Century Fox's assets, Disney is expected by analysts to report a 41-percent jump in fiscal third-quarter revenue to $21.5 billion, according to Refinitiv data. Analysts on average expect earnings per share of $1.75. Disney's EPS has met or exceeded consensus estimates in six of the past eight quarters.

"My guess is the company will want to focus on content and investors will want to hear more about the streaming strategy," Ablin said.

source: news.abs-cbn.com

YouTube touts first new original program under free strategy

NEW YORK/SAN FRANCISCO - Alphabet Inc's YouTube unveiled on Thursday nine new original programs that will be available for free this year as the streaming service shrinks an effort to attract subscribers with content exclusively behind a paywall.

The unveiling at a YouTube event for advertisers and media in New York offered the first glimpse at how the shift announced in November away from subscriber-only content will play out across the world.

Programming has turned out to be less of a draw for YouTube Premium subscribers than ad-free viewing and other perks, while YouTube has faced pressure from advertisers to increase its supply of television-like content that is suitable for sponsorship.

New programs include a documentary about Dude Perfect, a group that performs sports tricks on YouTube, and an interactive series featuring YouTube star Mark Fischbach that lets viewers control the storyline.

Also on tap are an investigation show from media startup Vox and a set of standalone films from The School of Life channel on YouTube that "explore some of the greatest philosophical questions of our age," YouTube said.

More programs are expected to be announced later this year, including an international slate. As YouTube seeks to broaden its audience for original programming, it plans to direct half of its development budget to programs aimed at viewers outside the United States, according to a person familiar with the matter.

YouTube said its overall spending on programming remains consistent with past years.

Alphabet does not break out financial results for YouTube, which is part of Google, but financial analysts expressed concern this week that advertiser scrutiny of user-generated inappropriate or offensive content on YouTube could be among reasons for a slowdown in revenue growth at Google.

Ads are YouTube's core business, and executives said Thursday they wanted to align the original content arm with the overall business.

“While every other media company is building a paywall, we are headed in the opposite direction," YouTube's chief business officer, Robert Kyncl, said in a statement.

YouTube said it is still testing content-related benefits for subscribers. For instance, all episodes from the next season of its popular show "Cobra Kai," which is based on the Karate Kid movie franchise, will be available to subscribers when it launches. Non-subscribers will gain access to one new episode per week, similar to the rollout of shows on traditional television.

New episodes of a handful of existing programs are likely to remain subscriber-only because of prior commitments, YouTube said.

GLOBAL FOCUS

YouTube showcased only one international program on Thursday, a documentary due in June on Latin American pop star Maluma.

YouTube streamed about a dozen original shows and movies over the last year that were aimed internationally where it saw a big opportunity to get subscribers, including in France, Germany, India, South Korea and Japan.

YouTube has shifted gears several times on original programming since making it a focus in 2011. Among debates have been whether ad sales alone could be enough to generate a return on investment, especially for expensive scripted shows.

Overall, YouTube has debuted about 75 shows and 28 films under its previous strategy, which was launched in 2016, according to a Reuters tally. Thirteen of those shows so far went onto multiple seasons.

Though some shows drew significant viewership to free samples, they were not renewed because they struggled to convert users into subscribers, according to content makers.

YouTube declined to comment on the figures or evaluation process.

The streaming service also announced 2 projects scheduled for next year featuring global stars: A documentary on model Paris Hilton and a secret project with singer Justin Bieber. 

source: news.abs-cbn.com

In streaming wars, Apple says it can coexist with Netflix

Far from being a Netflix Inc killer, Apple Inc envisions its forthcoming Apple TV+ streaming service as one that could sit alongside other services that viewers buy, Apple chief executive Tim Cook said on Tuesday.

Apple in March said it will launch a streaming service with original content from big names including Oprah Winfrey and Steven Spielberg. It plans to spend $2 billion on programming but has not said how much the service will cost.

Investors are keeping a close eye on Apple's television efforts because subscription services are an increasingly important part of its financial results as iPhone sales decline.

Apple is entering a crowded field, including Walt Disney Co's $6.99 per month service launching this fall. At the other end of the price spectrum, Alphabet Inc's YouTube this month said that it was raising the price of its YouTube TV online service, a cable-like bundle of more than 70 channels, to $49.99 per month.

On a conference call with investors on Tuesday, Cook indicated that Apple will not try to give viewers everything they want.

"There's a huge move from the cable bundle to over-the-top," Cook told investors during a call on Tuesday, referring to streaming television services delivered over the internet rather than a traditional cable service.

"We think that most users are going to get multiple over-the-top products, and we're going to do our best to convince them that the Apple TV+ product should be one of them."

source: news.abs-cbn.com

Netflix looms large as theater owners assess industry future

LAS VEGAS -- As movie theater owners converge on Las Vegas for their annual convention, one topic that keeps coming up is how they contend with a company that has resisted their traditional business model: Netflix Inc.

The world's most successful streaming service sends some movies to theaters but has insisted on making them available on Netflix at the same time, or just a few weeks later. That has upset big movie chains, which refuse to show Netflix films and want a longer "window" of time to play films exclusively.

The issue of how Netflix fits into, or threatens, the theater business dominated a press conference on Tuesday at CinemaCon, the theater industry trade show.

"All of your questions from the first 17 minutes or whatever are about Netflix," grumbled John Fithian, president and chief executive of the National Association of Theatre Owners.

He said Netflix and theaters could happily co-exist, citing data that showed the biggest consumers of streaming video visit theaters more often. He also said Netflix had helped revive interest in documentaries, which had helped draw people to theaters to see them.

Earlier, Fithian told a crowd in a Caesars Palace theater that films reached their full potential only with a "robust theatrical release." He spoke just after "Crazy Rich Asians" director Jon M. Chu said his film would not have had as big an impact if it had debuted on a streaming service.

Some members of the Academy of Motion Picture Arts & Sciences, the group that hands out the Oscars, have been debating whether films must play in theaters for a specific length of time to compete for the awards, which could exclude Netflix or force the company to agree to longer exclusive theatrical runs.

Hollywood publication Variety reported on Tuesday that the Department of Justice had weighed in on the issue.

Antitrust chief Makan Delrahim sent a letter to the academy warning that any changes that limited eligibility for the industry's highest honors "may raise antitrust concerns," according to Variety.

An academy spokesperson confirmed it had received the letter and said any rule changes would be considered at an April 23 meeting. A source close to Netflix said the company was not involved with or aware of the Justice Department's letter.

Netflix is a member of the Motion Picture Association of America, the trade association for Walt Disney Co, AT&T Inc's Warner Bros. and other movie studios.

"We are all stronger advocates for creativity and the entertainment business when we are working together ... all of us," MPAA CEO Charles Rivkin said on the CinemaCon stage.

Both Rivkin and Fithian noted that box office receipts hit a record $11.9 billion in the United States and Canada in 2018 even as Netflix released dozens of original movies.

Mitch Neuhauser, managing director of CinemaCon, also was asked to address the issue when he wandered into a work room for reporters.

"Streaming is not a problem!" he exclaimed, noting that there are limits to how much people can stand to stay at home with all of the modern conveniences including grocery delivery.

"We've got to get out of the house. We are talking about becoming a society of hermits!" 

source: news.abs-cbn.com

Apple eyes starpower for launch of new news, video streaming service

SAN FRANCISCO - Is it Hollywood time for Apple?

The iPhone maker appeared set to launch its streaming television service next month, calling on celebrities such as Jennifer Aniston, Reese Witherspoon and "Star Wars" director J.J. Abrams to join an event at its Silicon Valley headquarters.

Apple remained customarily tight-lipped about its plans amid reports of a March 25 event at its Cupertino headquarters focusing on services, including video and a likely subscription news service aimed at shaking up the world of journalism.

The news comes with Apple under pressure to emphasize subscription-based services to diversify its revenues amid sluggish growth in smartphones, which have delivered the bulk of Apple's profits for the past decade.

With news and streaming video, Apple could potentially disrupt 2 sectors and move toward reinventing itself once again.

Apple transformed the digital music scene with deals to sell songs through its iTunes store launched in 2003.

An Apple streaming music service launched in mid-2015 now boasts more than 50 million subscribers.

Apple is believed to be investing at least $1 billion in content and has acquired the rights to a new series starring and co-produced by American actresses Jennifer Aniston and Reese Witherspoon. 

The 2 actresses were expected to join chief executive Tim Cook in Cupertino, with Jennifer Garner also present, according to the Hollywood Reporter.

The potential for an Apple service streaming movies or television shows has been a question since the company added the Apple TV set-top device to its lineup 12 years ago.

Bloomberg News reported the video service would compete with rivals like Netflix and Amazon Prime, although details of the service had not been finalized.

Apple for news?

The Wall Street Journal reported this week that some news organizations were balking at Apple's plan to take a 50 percent cut of revenues as it beefs up its mobile app to offer newspaper as well as magazine subscriptions.

The disclosure appears to be "attempts to negotiate through the media," according to tech analyst Ben Thompson on his Stratechery blog, who added that if Apple succeeds, "having one place to get all of the best journalism would be amazing."

Some analysts remained skeptical about Apple's plans to disrupt journalism.

"It's hard to justify a 50 percent cut," Creative Strategies analyst Carolina Milanesi said in a tweet on the subject.

Apple, known for having music stars perform at its media events, is looking to build momentum for its Apple TV service, with deals to have it installed on television models coming out this year.

During a recent earnings call, Cook confirmed that Apple plans to produce its own shows in a move that could challenge streaming television giants Netflix and Amazon Prime, which have invested heavily in original content.

"We will participate in the original content world," Cook said while discussing Apple's plans for video content including a partnership with Oprah Winfrey.

source: news.abs-cbn.com

YouTube shifts to make new exclusive shows, movies free to users

SAN FRANCISCO - YouTube plans to make all future original programming available to users for free with advertising, as the video streaming unit of Alphabet Inc's Google seeks a bigger audience for shows and movies that had mostly been restricted to paid subscribers.

The shift in strategy means that starting in 2020, a YouTube Premium subscription will no longer be the only way to watch most original programs, with all users having some access.

YouTube's paid option will still remove ads from originals as well as all other videos, and it comes with music streaming privileges.

YouTube said earlier on Tuesday that the new strategy would kick in next year, but later noted that though it would apply to content planned in 2019, the actual programming will debut the year after.

YouTube has not disclosed the total number of subscribers for the paid offering, launched three years ago, which is available in 29 countries.

It said its move to make programming free was aimed at satisfying growing international user interest in original programming and advertiser demand to associate with special content. The move also gives the company more flexibility in marketing its programs.

Some future programming or behind-the-scenes content may remain exclusive to subscribers, if only for a brief time, a person familiar with the thinking said.

YouTube Premium costs about $12 a month in the United States.

The dozens of previously released shows and movies in YouTube Premium, such as the first season of popular action comedy "Cobra Kai," will remain behind the paywall, the company said. 

source: news.abs-cbn.com

Netflix crosses $100 billion market cap as subscribers surge

Netflix Inc snagged 2 million more subscribers than Wall Street expected in the final three months of 2017, tripling profits at the online video service that is burning money on new programming to dominate internet television around the world.

The results drove Netflix to a market capitalization of more than $100 billion for the first time. Shares jumped 9 percent to over $248 in after-hours trading on Monday after rallying throughout the month and rising 53 percent last year.

The company has signed up more than half of all US broadband households and is building its customer base in 190 countries by spending billions on programming.

Netflix picked up 6.36 million subscribers in international markets from October through December, when it released new seasons of critically acclaimed shows "Stranger Things" and "The Crown" as well as Will Smith action movie "Bright." That topped Wall Street expectations of 5.1 million, according to FactSet.

Along with 1.98 million customer additions in the United States, the company ended the year with 117.58 million streaming subscribers around the globe, despite a price hike in October.

"Netflix is pouring more and more money into making content, and it is directly translating into more subscribers," BTIG analyst Richard Greenfield said. "They see a huge opportunity and they are moving as fast as they can to attack it."

The company also said it took a $39 million non-cash charge for "unreleased content we’ve decided not to move forward with." A source familiar with the matter said the charge was related to content starring Kevin Spacey, with whom Netflix cut ties after he was accused of sexual misconduct.

Netflix temporarily halted production of "House of Cards" to write out Spacey's character and decided not to release the film "Gore," which starred Spacey as Gore Vidal.

Spacey has apologized to one of his accusers, and according to his representatives is seeking unspecified treatment. Reuters was unable to independently confirm the accusations.

The charge is one of the first signs of costs faced by companies in the wake of a widespread campaign against sexual harassment.

Netflix turned a DVD-by-mail business into an online competitor of movie channel HBO. As it grew it began licensing its own original shows to ensure a stream of new offerings if studio suppliers ended deals.

In fact, Walt Disney Co is making a major push into online streaming and will pull its first-run shows and movies from Netflix in 2019 as Hollywood fights for audiences.

Netflix plans to spend up to $8 billion this year on TV shows and movies to fend off Disney, Amazon.com Inc, studios-owned Hulu and local competitors that are jumping into online video, and it is turning more and more to high-budget projects, such as the roughly $90 million "Bright."

In 2017, Netflix recorded its first full-year profit in international markets. The company has said it is aiming for steady improvements in profitability overseas this year.

"We believe our big investments in content are paying off," Netflix said in a quarterly letter to shareholders.

Netflix is raising its marketing budget faster than revenue is growing and will spend about $2 billion this year. The company expects negative cash flow in 2018 of $3 billion to $4 billion, up from $2 billion in 2017.

Last October, Netflix raised prices for two of its three main subscription plans to help fund the substantial content investment. The earnings report showed customers took it in stride.

"Consumers are tolerant as long as something's improving," Netflix CEO Reed Hastings, on a post-earnings webcast, said of the price increase.

For the December quarter, Netflix reported diluted earnings-per-share of 41 cents, even with the expectations of analysts polled by Thomson Reuters I/B/E/S.

Revenue for the three months totaled $3.286 billion, in line with forecasts.

Looking ahead, Netflix forecast streaming customer additions of 6.35 million for the first quarter, above analysts' expectation of 5.01 million, according to FactSet.

Investors appear confident in Netflix's ability to grow. Netflix recently traded at 91 times expected earnings for the next 12 months, versus Amazon at 152 times earnings and Disney at 17 times earnings, according to Thomson Reuters data.

Netflix also said Monday that Rodolphe Belmer, CEO of global satellite company Eutelsat, had joined the company's board.

source: news.abs-cbn.com

Netflix subscriptions boom around world, shares jump 20 pct

LOS ANGELES - Netflix Inc. added over 50 percent more subscribers than expected in the third quarter as original shows such as "Stranger Things" drew new international viewers and kept U.S. customers despite a price hike, sending its shares soaring 20 percent in late trade.

The company broke a two-quarter trend of disappointing subscription growth. Netflix, which has spent heavily to expand outside its home market, also said that it was on track to start harvesting "material global profits" next year, even as it raised spending on original programming.

Shares of Netflix rose to $119.82 in extended trade from a close of $99.80.

Netflix added about 3.20 million subscribers internationally in the third quarter, higher than the 2.01 million average analyst estimate.

In the United States, Netflix added 370,000 subscriptions, compared with analysts' estimate of 309,000, according to research firm FactSet StreetAccount.

"Investors appear laser focused on subscriber growth, and so long as Netflix delivers on that metric, investors will bid its shares up," said Wedbush Securities analyst Michael Pachter. However, Pachter said he thought the continuing cost of developing new shows would undermine plans to deliver material profits in 2017.

Netflix has expanded into more than 130 markets worldwide, including most major countries, except China. It said on Monday it was dropping plans to launch a service in China in the near term, opting instead to license its shows for "modest" revenue,

The company said it still hopes to launch service in China "eventually."

In the meantime, Netflix plans to keep pouring money into building its stable of original and licensed TV shows and movies. Content spending will rise to $6 billion next year, a $1 billion increase from 2016, the company said."We will keep investing in growing the content spend, even domestically, for quite a long time," Chief Executive Reed Hastings said on webcast.

Netflix has been facing a slowdown in subscription growth in the United States as the market matures and a planned U.S. price hike raised concerns it would not hit its targets. It also faces competition from the likes of Hulu and Amazon.com Inc.

But the company, whose other popular original shows include "Orange is the New Black" and "House of Cards", said it expects to add 1.45 million subscribers in the United States in the current quarter.

Analysts on average were expecting 1.27 million additions, according to research firm FactSet StreetAccount.

"Netflix has successfully navigated the challenges of a price increase," retail research group Conlumino said in a note, adding that it had been "somewhat less successful" in maintaining subscriber growth.

In its international markets, it expects subscriber additions of 3.75 million, compared with the average analyst estimate of 3.32 million.

Third-quarter revenue rose 31.7 percent to $2.29 billion.

Netflix's shares have surged in the past few years, driven by rapid growth as the company redefined television and fueled "binge watching."

The stock, however, was down 12.7 percent this year as investors fretted about slowing growth in its domestic market and increasing competition.

source: www.abs-cbnnews.com

Netflix global push grabs more customers than expected

Netflix Inc.'s aggressive push into international markets won more customers than the video streaming service and its investors expected last quarter, sending its shares surging 7 percent.

The dominant online video company said on Tuesday it had 74.8 million subscribers at the end of December and forecast 6.1 million more through March, fueled by its expansion this month into virtually every country except China, where it is exploring ways to launch its service.

The projection is more bullish than the 4.94 million average estimate of analysts surveyed by FactSet StreetAccount.

Shares of Netflix rose 7 percent to $115.42 in after-hours trading.

Netflix, which started sending DVDs to customers by mail two decades ago, now offers its subscribers unlimited online access to TV shows and movies from Hollywood studios plus its own original shows such as "House of Cards" and "Orange is the New Black."

New customers overseas are countering slowing growth for Netflix in the United States, the company's biggest market. It added 1.56 million U.S. subscribers in the fourth quarter, below the 1.65 million it forecast, and less than 1.9 million a year earlier.

"Our high penetration in the U.S. seems to be making net additions harder than in the past," the company said in a quarterly letter to shareholders.

Netflix said it expects U.S. subscribers to jump 1.75 million this quarter. The company will likely benefit from the return of hit show "House of Cards" and a traditional bump in interest at the start of the year from people with new TV sets.

Internationally, Netflix added 4.04 million subscribers, compared with its estimate of 3.50 million. Netflix does not break down where its international subscribers are based.

From January through March, the company expects to add about 4.35 million international subscribers.

"The rollout in 130 countries in early January ensures that they will have no problem hitting their international target," Wedbush Securities analyst Michael Pachter said.

Netflix said it may be able to start a service in China this year, but it may take longer. "We have work and uncertainty ahead," the company said in its investor letter. "Our expectations are modest and long-term."

Netflix said revenue rose 22.8 percent to $1.82 billion in the December quarter. Analysts on average had expected revenue of $1.83 billion, according to Thomson Reuters I/B/E/S.

Excluding items, Netflix earned 7 cents per share, ahead of analysts' average estimate of 2 cents per share.

source: www.abs-cbnnews.com

Netflix arrives in the Philippines

MANILA - Video streaming giant Netflix grew bigger as it becomes available worldwide.

CEO Reed Hashtings announced during a Consumer Elecronics Show tech show Las Vegas on Wednesday (Thursday in Manila) that Netflix is now available in 130 countries across the globe, including the Philippines.

In the Philippines, monthly rates are at P370 (basic), P460 (standard) to P550 (premium), depending on the plan a consumer wants.



Netflix offers over 100 million hours of of TV shows, movies and documentaries, original series such as "Marvel’s Daredevil" and "Marvel’s Jessica Jones".

In 2016, Netflix said it plans to release 31 new and returning original series,

FULL LIST: Netflix premiere dates

Netflix enables a consumer to watch in standard definition (SD), high definition (HD) or ultra HD (UHD) from any Internet-connected device such as computers and laptops, smart phones, tablets devices, and smart TVs.

The Philippines' Internet speed average 3.64 megabits per second (Mbps), which is still within the minimum requirement of Netflix at 0.5 Mbps.

However, HD availability is subject to the Internet service and device capabilities.

Netflix's recommended internet speed for those who want to watch in HD is at least 5.0 Mbps.




Recommended Internet speed, meanwhile, for those who have 4K TV, which play UHD-quality videos, is at least 25 Mbps.



Existing international video streaming services in the Philippines include iflix, which offers over 10,000 hours of shows at a monthly rate of P129; and HOOQ, which offers over 30,000 hours of shows at P149.

iflix is a partnership between Catcha Group and Evolution Media Capital. It is offered in the Philippines by the Philippine Long Distance Telephone Company (PLDT) and its mobile services subsidiary, Smart Communications. Meanwhile, HOOQ is a Singapore-based company that is exclusively offered in the Philippines by Globe Telecom.

source: www.abs-cbnnews.com

Adam Sandler signs four-film deal with Netflix

Netflix Inc said on Thursday that comedian and actor Adam Sandler has signed a deal to star in and produce four films that will be shown exclusively on the video-streaming service.

The deal moves Netflix, which produces the Emmy-winning political thriller "House of Cards" and the comedy-drama "Orange Is the New Black," further into original programming.

"His appeal spans across viewers of all ages - everybody had a favorite movie, everyone has a favorite line - not just in the US but all over the world," Ted Sarandos, Netflix's chief content officer, said in a statement.

The four feature films from Sandler's company, Happy Madison Productions, will be shown in the nearly 50 countries where Netflix is available.

Brooklyn-born Sandler, 48, started his career as a stand-up comedian before joining the NBC comedy sketch show "Saturday Night Live."His films include "Big Daddy," "The Wedding Singer," "Grown Ups" and this year's "Men, Women & Children," which premiered at the Toronto Film Festival.

(Reporting by Patricia Reaney)

source: www.abs-cbnnews.com

Yahoo buys video streaming startup RayV

SAN FRANCISCO - Yahoo announced Friday it has bought an Israel-based startup specializing in streaming high-quality video to computers and mobile devices.

Yahoo did not disclose financial terms of the deal to acquire RayV, which will become part of the California company's research and development team in Tel Aviv.

"The (RayV) team lives and breathes video, and have become industry pioneers," Yahoo said in a Tumblr post.

"This deal demonstrates our dedication to accelerating our video strategy and boosting our underlying technology infrastructure in the space."

Yahoo is focusing on ramping up its offerings for streaming video live or on demand.

News of Yahoo's latest acquisition came on the same day that it unveiled a lineup of free streaming concerts by music stars such as Usher, Michael Franti and The Dave Matthews Band.

A Live Nation Channel on Yahoo Screen promised to serve up a new live concert daily beginning on July 15, when The Dave Matthews Band performs two sets.

"In today's on-demand entertainment environment, live experiences are the only ones that we all share together, at the same time," Yahoo chief marketing officer Kathy Savitt said in a statement.

"Together with Live Nation, we are excited to bring millions of fans together to share these moments through the new Yahoo Live experience."

A glimpse of the schedule for the first month at yahoo.com/live promised performances by John Legend, Justin Timberlake, OneRepublic, Everclear, Airborne Toxic Event and other music stars.

"This channel will create a powerful new way for artists to continue to grow their global fan base," Live Nation chief executive Michael Rapino said.

Concerts can be streamed through Yahoo Screen on a wide array of Internet-linked devices including Roku, Xbox 360 consoles, AppleTV, desktop computers and mobile devices powered by Apple or Android software, according to the Sunnyvale, California-based technology firm.

Yahoo has been shedding its online search engine past in favor of a future as a venue for premier digital content and services, particularly aimed at smartphones and tablet computers.

It has also been investing in original programming.

The company has enlisted news, music and television stars for online magazines focused on technology, film and food.

source: www.abs-cbnnews.com

How full-time YouTube users are making profit

MANILA – There are a lot of things YouTube users can do to maximize their own channels.

This is what the speakers from the popular video-hosting website YouTube said during a workshop held at the Mind Museum in Bonifacio Global City on Thursday.

The first ever Philippine YouTube Pop-Up Workshop aims to explain to YouTube users how they can effectively attract more subscribers and make a living just by uploading videos on their channels.

YouTube Philippines Content Partnerships Manger Trixie Canivel said that YouTube is a great platform for Filipinos because it is accessible to everyone.

“Anyone can be on YouTube. A lot of people get on Youtube because they want to create videos about doing stuff that they love,” she said.

Canivel cited the story of now-popular YouTuber Lloyd Cadena, whose series of video blogs online has attracted more than 175,000 subscribers. Cadena’s videos prominently tackle topics related to romance, schooling and the local lesbian, gay bisexual and transgender community, among others.

She also said that what YouTube users do not know is that they can actually make profit just by posting videos on their channels.

“What a lot of people don’t know is that actually, you can turn that [your videos] into a business by turning ads on and monetizing your videos and working with sponsors to be able to really turn it to a viable opportunity for you,” Canivel said.

An example of YouTube users who have enjoyed the monetizing feature of the website is real-life couple Jamvhille Sebastian and Paolinne Michelle Liggayu or more popularly known as “Jamich”. During the workshop, the couple admitted that during a one-month period, they are able to make a six-digit revenue out of the videos they upload.

Canivel, meanwhile, stressed that in order for YouTubers to attract more subscribers, they must work on developing their channels. For starters, YouTubers must establish authentic and unique channels which should be maintained on a regular basis. This, according to Canivel, is a sure way to build a strong fan base.

Following the workshop, a panel which consists of popular YouTube users and channel heads spoke before the members of the press. They include ABS-CBN YouTube Channel Strategies Head Dennis Lim, Jamich, PaperbugTV Channel representatives Jako de Leon and Marco Ho (more popularly known as comedian Bogart the Explorer), and Filipino-Canadian YouTube sensation Mikey Bustos.

YouTube – still a growing platform

Google Philippines Country Marketing Manager Ryan Morales claimed that with over one billion subscribers every month, YouTube is now one of the most influential online platforms in the world.

“If you fit the Internet and the denominator, [that is] almost one out of every two people. So 50% of the entire internet population watches YouTube on a monthly basis. And if you are to make YouTube a country, it will be the third largest country next to China and India,” he said.

Morales revealed that in the Philippines, YouTube is gradually gaining followers among mobile users who opt to watch videos on their mobile devices.

“But the one thing you might not know is in the Philippines is actually hype. That almost a third of YouTube’s traffic in the Philippines is through mobile devices,” he said.

source: www.abs-cbnnews.com