Sources say Amazon is making a move that threatens PayPal and banks that issue credit cards: passing discounts it gets on credit-card fees to retailers that use its online payment service. In doing so, Amazon is sacrificing short-term profitability to boost the fortunes of its payments system. JPMorgan Chase, Citigroup, Visa, Mastercard and payment processors First Data and Stripe Inc. partake in the $90 billion per year swipe fee industry, about 2 percent of a typical credit card purchase or 24 cents for debit. Continue reading Amazon’s Plan to Lure Retailers to Amazon Pay via Discounts

Amazon announced that it plans to raise the price of its annual Prime membership from $99 to $119 in the U.S. The move marks the first increase since 2014 when the shipping and entertainment membership program cost $79 per year. New subscribers will pay $119 a year starting May 11, while the new fee will apply to current members beginning with renewals on June 16. Amazon CEO Jeff Bezos recently revealed that Prime has more than 100 million global members. The company surprised investors this week with news that it had more than doubled its quarterly profits to $1.6 billion. Continue reading Amazon Will Raise the Price of Prime Membership Next Month

According to a new report from the Video Advertising Bureau, the number of households in the United States that are now using only OTT streaming services to watch movies and TV shows has reached 14.1 million, a figure that has almost tripled over five years. However, that number makes up just 11 percent of all U.S. TV households. The report also found that over-the-top services are often used in tandem with pay TV subscriptions; 70 percent of those with OTT services also pay for cable, satellite or telcos.

Continue reading Number of OTT-Only Households in the U.S. Continues to Rise

After its first profitable quarter on record, Twitter is focusing on new business and advertising opportunities. For example, sources say the social media company is currently working on a camera-first feature that could compete with Snap and potentially threaten its advertising opportunities. The new feature would combine videos and photos with the Twitter Moments feature, creating more real-time content around events and enabling companies to sponsor events or place ads between tweeted content.

Continue reading New Camera-First Twitter Feature Could Threaten Snap’s Ads

Apple announced that it is acquiring Next Issue Media LLC and the company’s digital subscription service, Texture. For $10 per month, Texture provides subscribers with access to all or part of more than 200 magazines on Apple and Android devices. The deal will give the tech giant an additional business line that provides recurring revenue, similar to Apple Music. It could also help Apple’s relationship with publishers. Texture was originally created to give publishers more control over digital distribution, but was later rebranded as a service that offers curated articles based on subscribers’ interests. Continue reading Apple Plans to Purchase Digital Magazine Distributor Texture

You may soon be able to command “Alexa, Translate” and get sophisticated results. According to sources familiar with the matter, Amazon’s latest aim for Alexa, its popular voice-enabled assistant, is to become a real-time universal language translator. They say the tech giant is “seriously exploring” ways to make Alexa more useful cross-culturally. In order to do so, Amazon must significantly expand Alexa’s current ability to translate basic words and phrases in languages including Spanish, German, French and Italian.

Continue reading Amazon Envisions Alexa as a Universal Language Translator

In five years, Walmart invested millions of dollars in six giant server farms that now account for 80 percent of its cloud capacity. The move has enabled the company to keep up with its burgeoning growth for the last three quarters. Most retail businesses rent cloud computing, but Walmart’s determination to best Amazon led to its decision to build its own cloud network. With this internal network, the company can leverage all its customer data, be competitive with its prices and control inventory and other key functions. Continue reading Walmart Builds Its Own Cloud Computing Farm to Rival Amazon

For the last five years, Amazon’s average profit margins remained at 1 percent, and founder Jeff Bezos counseled patience. Amazon Web Services, its profitable cloud services business, drove shares up to $1,300, and now BMO Capital Markets raised its Amazon price target to $1,600 per share. That’s because Bezos’ end game is becoming clearer: a marketing platform that takes advantage of Amazon’s immense audience. Some analysts believe its shares could reach $2,000, making it the first company with a $1 trillion market value. Meanwhile, Amazon continues plans for its second headquarters. Continue reading Amazon Plans to Compete in Advertising, Narrows HQ2 Sites

Strategy Analytics predicts the smart speaker market will nearly quadruple in unit volume this year, bringing the total to 24 million. According to eMarketer, smart speakers will likely outsell wearables in the U.S. this holiday season. “We expect smart speakers to be the gift of choice for many tech enthusiasts, because of their lower price points,” said eMarketer analyst Cindy Liu. The research firm anticipates continued growth for devices such as smartwatches and fitness trackers in the U.S., but slowed growth in terms of usage. Continue reading Forecast: Smart Speakers Will Outsell Wearables This Season

With its NFL stream, Amazon hopes for more digital advertising. Advertisers considering the platform see at least two things they like: Amazon’s promised “attribution,” which shows how ads led to brand awareness or online store sales (including on Amazon), data that advertisers haven’t gotten reliably on TV; and Amazon’s viewers, all $99 per year Prime subscribers, which makes them more likely to make online purchases. Sling TV, Showtime, Gillette, Pepsi and Hyundai are the first to buy an Amazon NFL ad package. Continue reading Amazon Builds New Ad Goals on Thursday Night NFL Games

According to new data from eMarketer, the average U.S. adult is expected to spend two more minutes each day consuming media than the average time per day last year, up two hours from a decade ago. The researcher estimates that adult consumers will average 12 hours and 1 minute per day with major media this year. This increase, not surprisingly, reflects a continued shift in consumer behavior toward multitasking, thanks in large part to mobile tech. The average American still spends the most time watching television (nearly four hours per day), while mobile continues its ascent (currently at three hours and 17 minutes per day). Continue reading Americans Spend Half of Their Media Day Consuming Digital

Google is developing new tools for publishers and will end the “first click free” policy to help them boost subscriptions. The Wall Street Journal, The New York Times and The Financial Times keep their online articles behind a paywall, but savvy readers get around that by googling a headline or search terms, and then clicking for free access. Google’s new program, “flexible sampling,” allows publishers to determine how many free clicks they want to provide. The “first click free” policy required them to provide three free articles per day. Continue reading Google Will Let Publishers Decide the Number of Free Clicks

Video streaming device maker Roku begins trading today on Nasdaq, setting its IPO price at $14 per share, which would give it a $1.3 billion stock market value. The 15-year-old company is competing with the likes of Amazon, Apple and Google that all offer streaming video boxes featuring popular apps such as Netflix and Hulu. Roku’s devices provide access to Amazon, Netflix, YouTube and dozens of online channels, but competition is a major consideration with today’s tech investors. Snap Inc., for example, the year’s biggest tech IPO, has watched its shares plummet in value as Facebook’s Instagram rolled out Snapchat-like functionality. Continue reading Roku Goes Public Today, Sets its IPO Price at $14 per Share

We’ve seen a wide range of recent forecasts regarding cord cutting and the impact on traditional pay TV. According to a new survey from RBC Capital Markets, only 55 percent of respondents said they would continue their pay-TV subscriptions. While 2016 saw a loss of 2 million subscribers, a future increase exceeding 5 million per year “does not seem impossible,” wrote RBC analyst Steven Cahall. “The RBC survey found that 21 percent of current cable, satellite or telco TV customers were considering switching to a lower-cost virtual pay-TV service,” reports Variety, “like Hulu with Live TV, Sling TV or DirecTV Now.” Continue reading Pay TV Losses Could Jump to 5 Million Households per Year

Video consumption is continuing its transition from the living room to mobile devices. Android users in the U.S. watched nearly 1 billion hours worth of YouTube video content in July — the most time ever spent over a month in a single streaming video app. According to App Annie, the Android version of YouTube’s app accounted for about 80 percent of the 12 billion hours Americans spent between July 2016 and July 2017 using the top 10 Android apps for streaming video. Total time spent by consumers using video streaming apps jumped 45 percent from the previous year. Following YouTube is Netflix, Twitch, Hulu and Amazon Video. Continue reading YouTube Video Is Increasingly Popular as Viewers Go Mobile