Spotify Reaches 108M Subs, But Revenue Per User Drops

Top streaming music service Spotify announced that it added 8 million subscribers during the most recent quarter ending in June, bringing its total to 108 million paying subscribers and 232 million monthly active users (paying and non-paying). The subscriber tally includes those who signed up for Spotify’s 30-day free trial. The company also recently launched its biannual campaign that offers the premium service for only $1. As a result, its average revenue per user dropped to $5.42, which is a 1 percent reduction compared to the previous quarter. Continue reading Spotify Reaches 108M Subs, But Revenue Per User Drops

Amazon Revenue Strong, Record Profitability Streak Ends

After posting its best profits over the previous four quarters, Amazon broke its streak; its Q2 profit rose 3.6 percent from a year ago, to $2.63 billion, missing analysts’ predictions. Profitability got a hit from the increased costs of shipping, as Amazon struggled to make one-day shipping the standard for all its Prime members. Chief financial officer Brian Olsavsky said that “when the dust settles, we will regain our cost efficiency over time.” Revenue was a bright spot, however, with performance above analysts’ expectations. Continue reading Amazon Revenue Strong, Record Profitability Streak Ends

Facebook Unveils First Design Changes to Enhance Privacy

Under the dark cloud of various privacy-related scandals, Facebook chief executive Mark Zuckerberg announced the first of a series in design changes meant to shift the social media platform away from town square-style communication and toward more direct, private communication between users and groups. On Tuesday at Facebook’s annual developer conference, the company showcased a redesign of its mobile app and desktop site, both of which add new features to promote group-based communication rather than a focus on the News Feed.

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Spotify at 100 Million Paid Subscribers, Expands Podcasting

Music streaming giant Spotify exceeded analysts’ quarterly expectations when it announced it hit the coveted 100 million paid subscriber mark, a first for any music streaming company. That news, combined with a growing podcast business, enabled the company to narrow its loss in the most recent quarter, during which Spotify acquired podcast companies Gimlet Media and Anchor, as well as announced plans to acquire podcast producer Parcast. Spotify plans to spend as much as $500 million on non-music deals this year.

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Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

Microsoft enjoyed a strong fiscal Q3, ending March 31, with revenue rising 14 percent from a year earlier to $30.57 billion, due largely to a 41 percent growth in cloud computing (now almost one-third of its sales) and a 9 percent uptick in sales of its Windows operating system to PC makers. A 5 percent decline of Windows sales in the previous quarter was due to a dearth of Intel computer chips, depressing PC sales. Chief financial officer Amy Hood said Microsoft also saw “unexpected good performance” in Japan. Continue reading Microsoft’s Fiscal Q3 Boosted by Growth in Cloud Computing

France Slated to Impose Tax on Digital Companies’ Revenue

The French government introduced a three percent tax on the revenue of technology companies such as Google and Amazon that offer e-commerce or targeted advertising in France. Experts estimate that the tax could reap “billions of dollars” from Silicon Valley companies. The tax is also likely to come up as a topic of conversation in U.S. and European talks, convened by the Organization for Economic Cooperation and Development (OECD), about corporate taxes in the digital age. Europe is pushing to tax Silicon Valley companies on profits made there. Continue reading France Slated to Impose Tax on Digital Companies’ Revenue

Snap Maintains User Numbers, Aims for Profitability in 2019

The number of Snapchat app users will remain the same this quarter, news that was a relief to investors and helped propel Snap shares up 22 percent, to $8.62 in after hours trading. Since it went public in March 2017, Snapchat has competed with Facebook’s Instagram, which adopted many Snapchat features. Snap also redesigned the app, to the dismay of some advertisers and users. In Q4, Snap, with 186 million daily active users, was on a par with the previous quarter, although down one million from the same period a year ago. Continue reading Snap Maintains User Numbers, Aims for Profitability in 2019

Snapchat Considers Shift in Its Model With Permanent Snaps

Snap Inc. is reportedly mulling the introduction of longer lasting or permanent content to its popular Snapchat app, which has found a significant audience with a model based on disappearing photos and videos. Changing its most iconic feature would mark a major departure for Snap, but could lead to a much needed revenue source for the company if it doesn’t alienate its current users. Snapchat, which launched in 2011, is particularly popular with teens and millennials. Snap is also said to be considering an option that would allow for identifying users who create public posts. Continue reading Snapchat Considers Shift in Its Model With Permanent Snaps

Industry Experts Say Music Streaming, Vinyl Not Competitors

Although streaming may be hastening the end of the CD, it’s actually helping sales of vinyl. The Recording Industry Association of America (RIAA) reported this year that 75 percent of the music revenue in the country comes from streaming services such as Apple Music and Spotify. At the same time that CD sales have plummeted, vinyl sales have risen $2 million per year over the last three years. At a Making Vinyl conference in Detroit, experts said that streaming and vinyl are not competitive, but rather complementary. Continue reading Industry Experts Say Music Streaming, Vinyl Not Competitors

Apple Shares Dip Despite Report of Record Revenue, Profit

Apple reported record revenue and profit for the fourth consecutive quarter, due to higher iPhone prices and App Store sales, but shares fell 6.5 percent to $207.76 in after-hours trading. Investors were unhappy about the company’s announcement that it plans to stop reporting unit sales for products. Apple’s numbers reflect a trend of tech share price drops, due to investor concern about the combination of high valuations, slowing revenue growth and rising costs. Apple forecasts that December quarter revenue will be between $89 billion and $93 billion. Continue reading Apple Shares Dip Despite Report of Record Revenue, Profit

Facebook Growth Slows in Early Stage of its Shift to Video

Facebook recorded lower Q3 revenue than expected, the result said chief executive Mark Zuckerberg of “an unsteady transition” from News to more popular but less profitable Stories, which allows users to build photo/video montages that disappear after 24 hours. The company relayed that the transition’s early stage will be marked by higher costs, including more investment in 2019, and continued slow growth. Investors took the news in stride, unlike the July earnings report that resulted in a stock price plummet. Continue reading Facebook Growth Slows in Early Stage of its Shift to Video

Alphabet Posts Higher Profits But Slowing Overall Revenue

Alphabet, dealing with pushback from regulators and struggles in its corporate culture, reported net profit that increased 37 percent to $9.19 billion in the quarter through September. Last year, during the same period, the company posted $6.7 billion. Although this growth exceeded analysts’ expectations, overall revenue is actually down, growing 21 percent to $33.74 billion versus last year’s 24 percent growth in the same period. Revenue from advertising, representing the majority of sales, grew 20 percent to $28.95 billion. Continue reading Alphabet Posts Higher Profits But Slowing Overall Revenue

Intel Benefits From Hot PC Market, Partners With Streamlabs

Despite delays in launching its next-gen processors, Intel posted a robust 19 percent growth in revenue, with profits soaring 42 percent. The red-hot market for PCs pressured Intel’s factories, but its focus on servers and high-end PCs boosted its positive numbers. The company’s revenue in Q3 was $19.16 billion — more than the $18.1 billion predicted by analysts, and up from $16.2 billion a year earlier. Intel partnered with Streamlabs to offer stream-capable hardware and software to third-party device manufacturers. Continue reading Intel Benefits From Hot PC Market, Partners With Streamlabs

Amazon Seeks Efficiency While Investing in New Businesses

After decades of unreliable profits, Amazon has had four consecutive quarters with profits over $1 billion, and a net income of $2.9 billion in Q3. Although the numbers exceeded analysts’ expectations, the e-commerce giant also revealed that revenue in its core retail business was below expectations, with sales up 29 percent to $56.6 billion, and sales in its online store rose only 11 percent over the last year, half the pace of a year ago. As a result, discontent investors recently dropped shares 7 percent in aftermarket trading. Continue reading Amazon Seeks Efficiency While Investing in New Businesses

AT&T Announces Profits, Plans to Roll Out 5G Mobile Network

AT&T’s Q3 profit was boosted by its holdings in entertainment, including growth in HBO subscribers and revenue from its Turner TV channels. AT&T also saw 13,000 new U-verse video subscribers and 49,000 new DirecTV Now customers. That, along with a bump in smartphone customers led to $4.72 billion in profits, and also helped to offset its loss of 359,000 DirecTV satellite customers in the same quarter. AT&T stated its plans to launch mobile 5G in “parts of 12 cities” in the next few weeks. Continue reading AT&T Announces Profits, Plans to Roll Out 5G Mobile Network

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