The European Union issued a record-breaking $2.7 billion fine against Google yesterday for violating EU antitrust rules. Margrethe Vestager, European commissioner for competition, announced that the seven-year investigation determined the U.S. tech giant had manipulated search results in order to place its own shopping service ahead of services offered by rivals, thereby creating an “illegal advantage.” Google now has up to 90 days to adjust its practices or potentially face additional penalties. The company is said to be considering an appeal. Continue reading Antitrust Case: EU Slaps Google With Record $2.7 Billion Fine

Facebook is meeting with Creative Artists Agency, United Talent Agency, William Morris Endeavor and ICM Partners as part of its effort to debut original programs by the end of summer, say sources. The social media titan also said it will commit to hefty production budgets — up to $3 million per episode — similar to those of high-end cable shows, as well as more moderately priced shows costing mid-to-high six figures per episode. Facebook’s plan is to own as much of the content as possible. Continue reading Facebook Plans to Introduce Original Programs This Summer

Amazon revealed to Reuters that it will charge advertisers $2.8 million for 30-second commercials during the NFL Thursday Night Football games it will stream live to Prime customers this upcoming season. Amazon is paying the NFL $50 million to stream the season’s 10 games, the company’s first major push into live sports. In addition to Amazon Prime streaming, the games will also be available on either CBS or NBC, each of which are airing five games. Last season, Twitter paid $10 million to stream Thursday night NFL games. Continue reading Amazon Prices NFL Thursday 30-Second Spot at $2.8 Million

Pandora co-founder and CEO Tim Westergren plans to step down from his position running the 17-year-old streaming music pioneer. The company has yet to select a replacement. Earlier this month, satellite company Sirius XM announced it would invest $480 million in the web radio service for a 19 percent stake in the company and three board seats. Despite a user base of 80 million, “Pandora has struggled to generate enough advertising revenue to cover the cost of the free service,” reports Recode. “Meanwhile, music listeners have begun gravitating to the on-demand subscription services of Spotify, Apple and others, which offer ad-free access.” Continue reading Westergren to Step Down as CEO of Music Service Pandora

By the end of 2017, Discovery Communications will have shifted the processing of all its U.S. TV programs and 80 percent of its business systems from its own data centers to the public cloud. Last week, the company distributed Discovery Life and Destination America, among the smallest of its 13 U.S. channels, via Amazon Web Services. By doing so, Discovery is moving away from its reliance on pricey satellite networks and enabling more flexible programming, says the company chief technology officer John Honeycutt. Continue reading Discovery Moves TV and Business Systems Into AWS Cloud

Fox Networks Group plans to introduce a six-second, unskippable ad format for digital and on-demand platforms by October. The new format, similar to an approach adopted by YouTube, could eventually be offered to traditional TV advertisers, following its testing phase. “TV ads are typically longer than 15 seconds, but as viewing shifts online, where people are skipping or blocking ads, advertisers and media companies have experimented with new ad formats and strategies,” reports The Wall Street Journal. Fox’s new format could be ideal as pre-roll ads before long-form episodes and premium sports content. Continue reading Fox Plans Six-Second Ad Format for Digital Platforms and TV

Facebook is in production on new video series, with an eye on the $70 billion TV advertising market. First up from the social media company are reality competition series “Last State Standing” and a second season of comedy “Loosely Exactly Nicole,” which first appeared on MTV. Facebook hopes that if it adds original programming to the site, it will encourage cable networks and ad-supported, youth-oriented online services to upload their own premium video content. Facebook executives have compared its efforts to priming the pump. Continue reading Facebook Introduces Video Series, Targeting TV Ad Market

Snap Inc. has inked a $100 million deal with Time Warner’s Turner cable channels and Warner Bros. studios for up to 10 original shows a year for the platform. The big studios and traditional TV companies see Snapchat as a way to reach its younger demographic, which is much less likely to subscribe to their premium channels. For example, HBO now has a path to creating content for Snapchat, and scripted drama and comedy are among the genres considered for distribution via the deal. Snap’s shows typically run three to five minutes. Continue reading Snap, Time Warner Ink $100 Million Deal For Original Shows

Margrethe Vestager, the European Union’s commissioner for competition, is reportedly close to ruling on an antitrust case regarding Google’s search services that is likely to result in a record fine, according to insiders. The penalty is expected to exceed the $1.4 billion antitrust fine that Intel paid in Europe in 2009. “Officials could also force Google to alter how it operates in the region, and potentially elsewhere, to give rivals a greater ability to compete,” reports The New York Times. The case “claims that Google diverted traffic from competitors’ services to favor its own comparison shopping site.” The European Commission is also investigating two other cases that involve Android and Google’s advertising products. “Google has denied any wrongdoing,” notes NYT. Continue reading Google May Be Facing a Record Fine by the European Union

Spotify will pay music labels more than $2 billion in minimum payments over the next two years. The company’s revenue has grown more than 50 percent, to $3.3 billion last year, so the big deals are a means to keep growing. Sources say the company has inked two deals recently, with Universal Music Group, the world’s biggest music label, accounting for one-third of the market, and Merlin, which represents a group of independent labels. The Wall Street Journal previously reported that Spotify plans to go public this year. Continue reading Spotify Signs New Universal and Merlin Deals, Preps for IPO

Instagram has taken a step to increase transparency, giving Internet celebrities on the site an easier way to let viewers know if their posts are sponsored. Users and sponsors can work together to decide whether or not to tag a post as a “paid partnership” at the top. This new feature is currently being tested with a few celebrities and businesses. If it proves successful, Instagram will launch it more widely. Parent company Facebook already uses a similar method of disclosing such paid partnerships. Continue reading Instagram Feature Brings Transparency to Sponsored Posts

Verizon completed its $4.48 billion purchase of Yahoo’s Internet business, which it will combine with Internet pioneer AOL. The two merged companies form Oath, a new division led by AOL chief executive Tim Armstrong that will serve about 1.3 billion monthly users. Verizon executive Marni Walden says the strategy is to place the same content in multiple locales to reach the biggest audience possible. “There is a tremendous opportunity to increase viewership of some of these brands,” she said.  Continue reading Verizon Merges Yahoo, AOL Into Oath, With 1.3 Billion Users

Snap is expanding its advertising options on Snapchat, introducing the Snap Publisher tool for building vertical video creative, a self-serve Ad Manager, and a Snapchat Certified Partners program, which connects advertisers to third-party ad tech tool providers. The goal is to make it easier than ever for advertisers to build successful campaigns on Snapchat, part of a strategy to compete with Google and Facebook. With the self-serve option, advertisers can now simply pay for a video ad on the Snap website. Continue reading Snap Unveils New Tools to Capture New Digital Advertisers

During Game 2 of the NBA Finals between the Golden State Warriors and the Cleveland Cavaliers, NBA video producer/editor Anthony Kuzviwanza (known as AK) shot a clip of comedian Dave Chapelle commenting on the game. That clip was part of a short NBA Finals video for Snapchat Shows. AK will be filming similar celebrity shout-outs, clips of players in the locker room and other video for the rest of the NBA Finals. The short videos, aimed at Snapchat’s young demographic, allow the NBA to reach viewers who may not watch its games on TV. Continue reading How the NBA Shoots its Finals for Exclusive Snapchat Shows

In a blog post this week, Facebook VP of core ads Mark Rabkin discusses “Video Advertising in the Mobile Age” and includes some interesting trends in television and social media consumption. While TV remains a powerful medium, people commonly turn to mobile feeds, apps, websites and texting when television no longer holds their attention. Facebook conducted a small study of TV viewers who watched the season premiere of a popular show last fall and found, not surprisingly, that use of Facebook increased during commercial breaks. The post shares tips for creating more effective ads for this audience. Continue reading Facebook Offers Tips for Effective Video Ads in a Mobile Era