In its biggest bid yet to compete more directly with Amazon, Arkansas-based Walmart is acquiring e-commerce startup Jet.com for $3.3 billion ($3 billion in cash and $300 million in shares to be paid over time). Walmart has been busy expanding its online operation, and the Jet.com deal provides it with a shopping site that is adding 400,000 consumers monthly and has already reached a $1 billion gross merchandise run rate. Store-based businesses such as Costco, Target and Walmart have been looking for effective ways to contend with Amazon’s successful online model. Continue reading Walmart to Purchase Jet.com in Bid to Compete with Amazon

The new version of Xbox One S launched with the ability to output high dynamic range to compatible TV sets. The move highlights the current competition between two different HDR standards: HDR10 and Dolby Vision. Xbox One S adopted the open standard HDR10 promoted by Samsung, Sony, Sharp, 20th Century Fox, Lionsgate and Paramount. Many content creators (Netflix and Amazon are two) and TV set manufacturers (Vizio, LG and Philips) are hedging their bets by offering content or hardware in both HDR standards. Continue reading With Xbox One S, Microsoft Is the Latest Supporter of HDR10

Following its $4.8 billion acquisition of Yahoo, Verizon announced it is purchasing Dublin-based telematics company Fleetmatics for $2.4 billion in cash. Fleetmatics will become part of the subsidiary Verizon Telematics, which primarily handles fleet management, mobile enterprise solutions and Internet of Things initiatives. Verizon’s AOL and Yahoo purchases will help build its media and advertising businesses, while the Fleetmatics acquisition points to the company’s enterprise mobility ambitions. The deal is expected to close by Q4 2016. Continue reading Verizon to Ramp Up Telematics with Purchase of Fleetmatics

Amazon announced its fifth consecutive quarterly profit yesterday, and its third consecutive record-setting profit. Revenue increased 31 percent; sales rose to $30.4 billion from $23.19 billion. The company’s cloud computing division, Amazon Web Services, accounted for an impressive 56 percent of Amazon’s operating income, and it grew 58 percent in the last quarter. “The results show Amazon moving toward investors’ long-held hope of consistent profitability after a lengthy period of heavy investments and quarterly losses,” notes The Wall Street Journal. “Overall, Amazon posted a second-quarter $857 million profit, or $1.78 a share, compared with $92 million, or 19 cents a share, a year earlier.” Continue reading Amazon Posts Record Profit and Significant Growth for AWS

Google’s quarterly profit rose 24 percent, while revenue increased 21 percent to $21.5 billion, thanks in large part to its advertising and push into mobile, according to The Wall Street Journal. Google is also experiencing success with its cloud services division. Parent company Alphabet reported 33 percent growth of its non-advertising business over the previous year, surpassing Wall Street expectations. “The strength of the quarter is about mobile,” said Google chief exec Sundar Pichai. “Our investment in mobile now underlines everything that we do today, from search and YouTube to Android and advertising.” Continue reading Google Reports Strong Quarter Based on Strength of Mobile

Chinese tech company LeEco (formerly LeTV), has paid $2 billion for California television seller Vizio, which presently controls about 20 percent of the U.S. market. The Beijing-based company is often referred to as the Netflix of China, although it sells hardware devices such as TVs, set-top boxes, smartphones and electric cars in addition to its streaming services. With the acquisition, LeEco can now bring its services to the U.S. “Our strategy is to integrate our platform — including software and services — with devices,” said LeEco exec Winston Cheng. Continue reading LeEco Acquires Vizio to Bring its Streaming Services to U.S.

The transition to Ultra HD is the classic chicken-and-egg scenario: Programmers don’t launch services because pay TV operators can’t distribute them, and consumers don’t buy UHD TV sets because there’s nothing to watch. Fifteen years ago that was the identical conundrum for High Definition, however, and now HDTV is ubiquitous in the U.S. Ultra HD just got one step closer to that with satellite operator SES’s launch of its first trials of Ultra HD 4K linear channels, to be followed by subscriber tests later in 2016. Continue reading SES Begins Ultra HD Linear TV Trials with Small Cable Ops

Cloud computing is booming, and Google is losing ground to Amazon and Microsoft. As the business of renting computer servers to outside businesses grows more lucrative, Google has decided to promote its artificial intelligence software to enterprise customers. Now, potential customers of Google’s cloud offering can also take advantage two software programs — converting text to speech and extracting meaning from text — that, up until now, have only been used internally. Rivals Amazon and Microsoft offer competing AI products. Continue reading Google Redoubles its Cloud Ambitions, Offering AI Programs

For the first time, Internet video pioneer YouTube has had to take into account that its dominance is being challenged, most notably by Facebook, Snapchat and Amazon. Now, YouTube has more than a billion users, an app audience of 18-to-49-year-olds that dwarfs that of any U.S. cable network, and an average mobile viewing session more than 40 minutes long. To keep ahead of the competition, YouTube has diversified, with apps devoted to specific niche audiences: YouTube Music, YouTube Kids and YouTube Gaming. Continue reading YouTube Faces Rivals, Diversifies to Capture Niche Audiences

On August 2, Microsoft’s Xbox One S will be available for $399. The new console is 40 percent smaller than the Xbox One, offers a tidy built-in power supply, and is capable of standing vertically, a throwback to older Xboxes. The Xbox One S is also more powerful, with a faster processor that, for the first time, provides 4K video for streaming Netflix and Amazon Video, and high dynamic range (HDR), as well as the ability to play Ultra HD Blu-ray discs. But only users with 4K TV sets will be able to see the difference. Continue reading Microsoft Debuts Xbox One S, Project Scorpio to Soon Follow

Netflix has scored big with 54 Emmy nominations, compared to last year’s 34 nominations. The number of nominations puts Netflix in third place, behind HBO (94 nominations) and FX Networks (56 nominations). Its long-standing series “House of Cards” continued to garner nominations, as did new series “Bloodlines” and “Narcos.” Netflix is also besting its competitors in terms of how it creates value for the money it spends on productions, with efficiencies an estimated three-times better than Amazon and Hulu. Continue reading Netflix Scores Emmy Noms, Reaping Value Per Dollar Spent

According to Amazon, product orders made during its second annual Prime Day surpassed last year’s sales by more than 60 percent worldwide (50 percent in the U.S.), while third-party vendors experiencing a 30 percent surge. Amazon says it tripled sales of its own devices in the U.S.; the Fire TV stick was the most popular Amazon device sold during Tuesday’s event. Prime Day debuted last year to commemorate the company’s 20th anniversary and encourage consumers to sign up for its Prime membership service, which offers perks such as two-day shipping and access to Prime Video and Prime Music. Continue reading Prime Day Experiences Sales Surge, Big Day for Fire TV Stick

According to e-commerce giant Amazon, yesterday’s Prime Day sales from third-party merchants were up 30 percent over last year’s event, driven by international demand. The statement was made at 3:00 pm Eastern Time during the company’s day-long promotion designed to attract more subscribers for its $99-per-year Amazon Prime membership. Once the total numbers are in, Amazon anticipates “a record day for small businesses and sellers.” Last year’s event was criticized after deals ran out too early. “The company this year offered more deals and deeper inventory,” reports Bloomberg. “It relied on thousands of third-party merchants who sell goods on Amazon and give the company a cut of each sale to boost the number of deals.” Continue reading Amazon’s Prime Day Sales Surge 30 Percent Over Last Year

With the goal of being a player in live-streaming sports, Twitter is now in conversations with the NBA, Major League Soccer and cable network Turner, say sources. The company already has the rights to stream some of the NFL’s Thursday Night Football games in the fall. And although Twitter couldn’t stream live Wimbledon matches (ESPN holds those rights), it has streamed pre- and post-game material as well as live interviews and analysis. New deals could resemble either of these arrangements. Continue reading Twitter in Talks with NBA, MLS and Turner for Live Streaming

Google announced yesterday that eight-year-old video platform Anvato is joining Google’s cloud division. Anvato’s software “fully automates the encoding, editing, publishing and secure distribution of video content across multiple platforms,” according to the Google Cloud Platform Blog. Anvato’s Media Content Platform, which counts media companies such as NBCUniversal, Fox Sports and Univision among its many customers, is expected to help Google “enable scalable media processing and workflows in the cloud.” Google is looking to compete with Amazon and Microsoft in cloud storage. Its current media clients include Sky News and Spotify. Continue reading Google Ramps Up its Cloud Business with Purchase of Anvato