Amazon: Rising Revenue and Technical Operation Challenges

With the coronavirus pandemic spurring online buying, Amazon saw its revenue for the quarter ending March rise 26 percent from a year earlier to $75.5 billion — the highest ever reached for what is ordinarily Amazon’s slowest quarter. According to FactSet, profit fell 29 percent from a year earlier to $2.5 billion, disappointing analysts’ average estimate of $3.26 billion. Amazon hired 175,000 new warehouse and delivery employees, and chief executive Jeff Bezos told investors this is “the hardest time” the company has faced. Continue reading Amazon: Rising Revenue and Technical Operation Challenges

In Grim Ad Market, Even Facebook and Google See Declines

Facebook and Google’s ad businesses appeared to be unstoppable, tripling over the last five years and accounting for more than half of online advertising expenditure. That long run appears to be over with the coronavirus pandemic and its impact on the global economy. Wall Street is now projecting that annual revenues for the two companies will decline for the first time in their histories, due in part to record low prices for advertising. Even so, prospects are even more dire for the overall digital advertising industry. Continue reading In Grim Ad Market, Even Facebook and Google See Declines

Advertising Sales Plummet Even as Social Media Usage Soars

Despite growing usage of social media platforms during the coronavirus pandemic, the platforms’ ad businesses are plummeting. Twitter, for example, saw its daily usage skyrocket 23 percent this year, but its revenue may have dropped as much as 20 percent in March. As businesses have slowed down or shuttered, marketers are decreasing or even stopping advertising, which is the core support of media companies. In difficult economic times, advertising spending on the media sector is often the first to be cut. Continue reading Advertising Sales Plummet Even as Social Media Usage Soars

Yahoo CEO Spinning Off Core Assets to Save Ailing Company

Yahoo’s chief executive Marissa Mayer is on a path to revive Yahoo by spinning off core assets, possibly ending the company’s existence as an independent entity. One thing is certain: the company is going to get smaller. On Tuesday, Yahoo said it would lay off 15 percent of its 11,000-person staff, ultimately making the workforce 42 percent smaller than it was in 2012, when Mayer took over the reins as chief executive. Although she counsels shareholders to be patient, activist investors may try to elect a new board. Continue reading Yahoo CEO Spinning Off Core Assets to Save Ailing Company

Facebook Plans to Push More Videos and Share Ad Revenue

Videos on Facebook garner 4 billion views a day — 75 percent on smartphones — and the company is increasing its efforts to turn views into profits. Its newly unveiled strategy is to share ad revenue with video creators, both to attract better content and more ads. Facebook will keep 45 percent of the revenue, similar to YouTube’s revenue model, but the two differ in a significant way: Facebook will divide the creators’ 55 percent share of ad revenue among all the videos that appear adjacent to the ad, based on how long users watch each video. Continue reading Facebook Plans to Push More Videos and Share Ad Revenue

Apple is Planning to Launch its Internet TV Service This Fall

Details regarding Apple’s online TV service are becoming available as the company continues discussions with programmers. Insiders point to a slimmed-down bundle of about 25 channels from networks such as ABC, CBS and Fox to be offered this fall. As previously reported, the content would be available across Apple devices powered by iOS, including iPhones, iPads, and Apple TV. Some execs suggests the skinny bundle would run in the $30-$40 per month range. It streaming service is expected to be announced in June and launch in September. Continue reading Apple is Planning to Launch its Internet TV Service This Fall

Amazon Considering a New Ad-Supported Streaming Service?

According to recent news reports, Amazon is planning to launch a new ad-supported streaming service early next year that will be separate from Prime. The ad-supported option could become a significant challenger to streaming services such as Netflix and Hulu, especially if it undercuts the monthly fees of its rivals. Sources indicate that the new service would ultimately serve as a vehicle to attract more subscribers for Amazon Prime. Meanwhile, Amazon has denied plans to offer a new service. Continue reading Amazon Considering a New Ad-Supported Streaming Service?