How the DOJ Antitrust Publishing Lawsuit Relates to Amazon

The nation’s largest publisher, Penguin Random House, was in federal court this week to defend itself against the Justice Department, which filed an antitrust lawsuit to block its acquisition of Simon & Schuster. The DOJ has been increasingly focused on antitrust and is hiring more trial lawyers in preparation for an action against Alphabet’s Google for its dominance in search and digital advertising. Although ostensibly on trial for threatening to shrink the number of American mass-market publishers from five to four, the Penguin suit also involves examination of the retail power of Amazon. Continue reading How the DOJ Antitrust Publishing Lawsuit Relates to Amazon

Streaming Viewership to Surpass Cable TV Before Year’s End

Streaming is expected to overtake linear TV viewing by the end of the year, according to a study by research firm Omdia. The Gauge, Nielsen’s latest media analysis report, found that streaming claimed 34 percent of total TV time in June for a fourth consecutive monthly record. That’s what cable claimed in June 2021, only to decline to 35 percent in June 2022. Nielsen SVP of product strategy and thought leadership Brian Fuhrer says what is unusual is “the extraordinary breakout that a number of the streamers had,” with Netflix jumping the most, a full share point. Continue reading Streaming Viewership to Surpass Cable TV Before Year’s End

Amazon Reports Online Sales Are Down While Revenue Is Up

Amazon increased revenue by 7 percent to $121.2 billion in the second quarter, beating analyst expectations and sending the stock soaring 12 percent despite a $2 billion loss. That contrasts with a $7.8 billion profit for the same period last year. The loss was due in part to Amazon’s investment in the electric car company Rivian, whose value has plunged this year. “Despite continued inflationary pressures in fuel, energy, and transportation costs, we’re making progress on the more controllable costs we referenced last quarter, particularly improving the productivity of our fulfillment network,” said Amazon CEO Andy Jassy. Continue reading Amazon Reports Online Sales Are Down While Revenue Is Up

Google’s Ad Growth Slows While Search Exceeds Projections

Alphabet had a rocky second quarter with revenue of $69.69 billion, up 13 percent from the same period in 2021, though net income was down 14.6 percent to $16 billion. It was Alphabet’s slowest growth rate since Q2 2020, when COVID-19 wreaked havoc on the economy. In a contracting 2022 advertising market, Alphabet posted 12 percent ad growth, totaling $56.3 billion for the quarter ended June 30 versus the same period the previous year. Ad growth was down substantially over the 69 percent increase of Q2 2022, but increased nonetheless where others are declining. Continue reading Google’s Ad Growth Slows While Search Exceeds Projections

Big Tech Drives Up Sports Prices as Amazon, Apple Go All In

Big Tech has become a disruptor in the marketplace for sports rights, with Amazon and Apple bidding against traditional media for rights to NFL and MLB games in addition to college conference competition and Formula 1 racing, according to recent reports. Among the prizes, DirecTV’s expiring rights to the NFL Sunday Ticket, a package that is being shopped with a $2.5 billion annual price tag, $1 billion more than the satellite operator’s current deal, which ends in January. In addition, Google is said to be bidding on behalf of YouTube. Beginning September 15, Amazon Prime Video begins its exclusive carriage deal for “Thursday Night Football.”  Continue reading Big Tech Drives Up Sports Prices as Amazon, Apple Go All In

NFL Subscription Streaming Service Targets Fans On-the-Go

The NFL has launched its long-awaited streaming service, NFL+, offering two tiers of live local and prime time regular season and postseason games on mobile devices, and live out-of-market preseason games on any device. Priced at $4.99 per month or $39.99 per year for the basic service, NFL+ also provides live local and national audio for every game and programs from the NFL Films archive. NFL+ Premium offers more live games and commercial-free replays on any device for 9.99 per month or $79.99 per year. Premium will absorb the $99.99 per year NFL Game Pass, launched in 2015, which will no longer be available as a separate subscription in the U.S.  Continue reading NFL Subscription Streaming Service Targets Fans On-the-Go

Amazon’s New Alexa Developer Tools Target Interoperability

Amazon just debuted new Alexa features including one that simplifies coordinating multiple voice assistants on a single device using Agent Transfers (AT) and Amazon’s Universal Device Commands (UDC). Using UDCs, Alexa will be able to act on instructions; for instance, saying “Hey Sonos, turn up the volume” to get results for devices with Sonos Voice Control. ATs enable Alexa to transfer requests it can’t unilaterally fulfill — like “Place an order on Uber Eats” — to other assistants that can. Amazon outlined its AT and UDC plans in a white paper on design recommendations for the Voice Interoperability Initiative (VII). Continue reading Amazon’s New Alexa Developer Tools Target Interoperability

Amazon Launches Updates to Its Prime Video User Interface

Amazon is rolling out a redesigned Prime Video app for Android and connected living room devices, including Fire TV for customers worldwide, with iOS and web to follow. The company says the new interface will make discovery and navigation much easier. Among the visual enhancements are a Top 10 Chart showcasing trending Prime Video content and “Super Carousel” displays with “poster-style artwork” for Amazon Originals. Also emphasized is graphical distinction between content included with Prime memberships versus that which is available for general purchase. Continue reading Amazon Launches Updates to Its Prime Video User Interface

Amazon Offers Concessions to Call Off EU’s Antitrust Probes

In the wake of the European Union’s strict new digital-competition laws, Amazon has proposed settlements in two EU antitrust cases. The U.S.-based e-commerce giant says it will stop using non-public data it obtains from the activities of independent sellers on its marketplace to inform its own business decisions in competition with those sellers. A separate investigation found Amazon to be self-dealing with regard to its Buy Box and Prime plans, resulting in a commitment to give third-party sellers equal treatment. The commitments would remain in force for five years, monitored by a trustee reporting to the European Commission. Continue reading Amazon Offers Concessions to Call Off EU’s Antitrust Probes

European Union Digital Markets Act Creates Cloud Concerns

Antitrust scrutiny under the European Union’s new Digital Markets Act is causing concern among U.S.-based cloud services providers. Cost-savings for clients who bundle services are not unusual in the cloud sector, and while some clients prefer using multiple cloud vendors, others want to take advantage of discounts. As enterprise continues to shift operations to the cloud, packages from Google Cloud Platform, Amazon Web Services and Microsoft Cloud find themselves subject to criticism in what some say is nothing less than a regulatory assault on vertical integration. Continue reading European Union Digital Markets Act Creates Cloud Concerns

Under Antitrust Scrutiny, Google Could Spinoff Its Adtech Biz

Battling new antitrust action by the U.S. Department of Justice, Google is offering to separate part of its adtech business into a discrete unit. The new Alphabet company would focus on app dissemination and programmatic auctions for advertising space and could potentially be worth billions of dollars. It is not known whether the move would satisfy the DOJ, which is reportedly prepping a fresh antitrust suit in the wake of a 2020 action. Google is also the target of antitrust investigations by state attorneys general and under EU and UK inquiries for anticompetitive measures. Continue reading Under Antitrust Scrutiny, Google Could Spinoff Its Adtech Biz

UK Competition Authority Analyzes Microsoft-Activision Deal

The UK’s Competition and Markets Authority opened an antitrust investigation last week into Microsoft’s proposed Activision Blizzard takeover, analyzing whether the deal could harm competition “for example, through higher prices, lower quality, or reduced choice.” The inquiry was announced the same day the CMA said it is looking into Amazon’s use of data from third-party sellers. In January, Microsoft shared plans to purchase Activision Blizzard for $68.7 billion — a record-setting price for a tech acquisition — with a planned fiscal 2023 close. The CMA has set September 1 as the deadline for its initial decision. Continue reading UK Competition Authority Analyzes Microsoft-Activision Deal

TiVo Owner Xperi Acquires OTT Software Firm for $109 Million

Technology company Xperi has purchased Norway-based OTT software maker Vewd for $109 million. Xperi purchased TiVo for $3 billion in December 2019, with the goal of integrating TiVo’s video UX with its smart TV expertise. Xperi intends to compete with companies like Amazon, Comcast, Google and Roku for the “gatekeeper” position in the world’s connected-TV living rooms. The Vewd deal gives Xperi access to an installed European footprint of roughly 15 million devices that it plans to target for activation of TiVo+, a free ad-supported TV (FAST) service. Continue reading TiVo Owner Xperi Acquires OTT Software Firm for $109 Million

EU Checks Power of Big Tech with Digital Services Regulation

The European Parliament has adopted two digital acts, one focused on leveling the competitive playing field, the other on protecting consumer rights online. The Digital Markets Act and the Digital Services Act are both expected to take effect this fall, after the European Commission signs off. “We are finally building a single digital market, the most important one in the ‘free world,’” EU commissioner for the internal market Thierry Breton said Tuesday. “The same predictable rules will apply, everywhere in the EU, for our 450 million citizens, bringing everyone a safer and fairer digital space.” Continue reading EU Checks Power of Big Tech with Digital Services Regulation

AWS, Microsoft, Google Likely to Continue Cloud Domination

The global cloud storage market is white hot, and the big keep getting bigger while indies lose ground, according to a study by Synergy Research Group that says the top three companies — Amazon Web Services (AWS), Microsoft and Google — account for 65 percent of what was in the first quarter of 2022 assessed as a $53 billion worldwide market. That’s up from a combined 52 percent of worldwide sales four years ago, Synergy notes, explaining the trio’s slice of this rapidly growing market is expected to expand as their efficiencies of size make them better equipped to continue investing and wooing new clients.  Continue reading AWS, Microsoft, Google Likely to Continue Cloud Domination