Disney, which is in the process of completing its purchase of NBCUniversal’s 33 percent stake in Hulu, will begin beta testing a combined Disney+ and Hulu bundle next month for subscribers of both services, according to CEO Bob Iger. Last week, Disney announced it would pay Comcast at least $8.61 billion for the Hulu stake, indicating the final cost could be higher, based on market value estimates by each party’s investment bankers. “We remain on track to roll out a more unified one-app experience domestically via Disney+,” Iger said in discussing the September quarter on an earnings call. Continue reading Merged Disney+ and Hulu App to Launch as Beta Next Month

Apple posted fiscal Q4 earnings of $89.5 billion, down one percent year-over-year. CEO Tim Cook put the quarter’s best facts forward: “a September quarter revenue record for iPhone and an all-time revenue record in Services,” and quarterly earnings per diluted share of $1.46, up 13 percent. While net income of just below $23 billion exceeded Wall Street expectations, Q4 capped a fiscal year in which Apple revenue fell 2.8 percent, impacted by a decline in iPhone sales in China. Following the report, shares fell 3 percent in extended trading based on the prospect that the company may not rebound to growth in the important holiday sales season. Continue reading Despite China Market, iPhone Sales Still Reach $43.8 Billion

Disney announced it plans to purchase the remaining one-third stake in Hulu from Comcast’s NBCUniversal in a move that has been widely expected. The announcement follows Disney’s acquisition of Fox’s entertainment assets in 2019, which gave the entertainment giant two-thirds of streaming service Hulu. Disney, which is expected to pay at least $8.61 billion for the remaining stake, currently offers the Hulu service as part of a streaming bundle with its Disney+ and ESPN+ platforms. “The acquisition of Comcast’s stake in Hulu at fair market value will further Disney’s streaming objectives,” explained the company in a press release. Continue reading Disney to Purchase Remaining Stake in Hulu from Comcast

Elon Musk’s X social media service will soon launch two new monthly subscription tiers, a $16 X Premium+ plan with no ads, and a budget-priced $3 option with “most” of the same features “but no reduction in ads.” Musk had for some months been discussing new paid subscription options as part of an effort to fight spam and bots on the platform. In November, the company began offering an $8 monthly X Premium subscription (formerly Twitter Blue) that includes blue check verification and the promise of some boosted post exposure. Musk is also envisioning a digital wallet with financial services, business applications to compete with LinkedIn, and a news wire service. Continue reading X to Launch Paid Tiers in Next Move Toward ‘Everything App’

Netflix can chalk up another solid quarter, with Q3 revenue of $8.5 billion, up 8 percent year-over-year, with 9 million new subscribers for a total of 247 million worldwide. Netflix attributes the strong subscriber growth in part to its ongoing password-sharing crackdown. The company has now officially rolled out what it calls “paid sharing” in all regions in which it operates, reporting that there were fewer resulting cancellations than expected. Rather, it says it has largely effectuated its desired result of converting piggybacking customers into paid subscribers. Meanwhile, Netflix is raising its rates as it continues to add originals and “license titles from around the world.” Continue reading Netflix Raising Rates After Profitable Q3, Subscriber Growth

Recorded music revenues in the United States reached $8.4 billion for the first half of 2023, an all-time high for the period that translates to a 9.3 percent increase, according to the Recording Industry Association of America (RIAA). Streaming continued to thrive, accounting for a whopping 84 percent of the six-month revenue total, or $7 billion. Total revenue from paid subscription services grew 11 percent to $5.5 billion, nearly double the growth in the number of individual paid accounts, which rose by just over 6 percent year-over-year, to an average of 95.8 million accounts. Continue reading Streaming Drives Music Revenue in the U.S. to a New Record

Roblox is adding an expressive, avatar-based video chat called Roblox Connect to its virtual world in an effort to keep its young user base engaged as it grows up while also potentially expanding its audience. “We’re essentially packaging a Hollywood-style motion capture studio into something that runs on a mobile phone or laptop — without the need for equipment or motion-tracking dots,” Roblox explains, pointing out that the device’s on-board camera is all that’s needed to capture facial motion and convey it in real time. Also, Roblox is is coming to PS4 and PS5 next month, while the company will allow game creators to sell 3D virtual goods. Continue reading Roblox Adds Facial-Tracking Vid Chat, Expands to PlayStation

Universal Music Group and Deezer have set Q4 as the launch date for a new, artist-centric streaming royalty model the companies jointly developed. Indie streaming platform Deezer will launch the concept model in its native France in Q4 2023. The companies conceived the new compensation methodology as part of a previously announced collaboration, using “deep data analysis” for an outcome they say “better reflects the true value of artist-fan relationships.” Calling streaming “the most significant technology advancement in music in many years,” the partners conclude “a flood of uploads with no meaningful engagement” has necessitated reassessment. Continue reading Universal, Deezer to Reinvent Music Streaming Royalty Model

Nvidia announced Q2 revenue of $13.51 billion, a 101 percent year-over-year increase that sets a new company record. The data center division — which accounts for the majority of AI chip sales — also established a new benchmark: $10.32 billion in Q2, a 171 percent leap over the prior fiscal Q2. Nvidia projects that revenue for the current quarter will hit $16 billion — about $3.5 billion above analysts’ expectations. Nvidia chips power OpenAI’s popular ChatGPT and other generative AI and cloud computing apps from companies including Amazon, Google, Meta Platforms, Microsoft and VMWare. Continue reading Demand for AI Chips Drives Nvidia to Revenue Record in Q2

Paramount Global has agreed to sell publishing giant Simon & Schuster to private equity firm KKR for $1.62 billion in an all-cash transaction. Paramount Global President and CEO Bob Bakish said the transaction “delivers excellent value to Paramount shareholders while also positioning Simon & Schuster for its next phase of growth with KKR.” On closing, expected in the first half of 2024, Simon & Schuster will become a standalone private company under the continued leadership of President and CEO Jonathan Karp and COO and CFO Dennis Eulau. Continue reading KKR Will Pay $1.62 Billion for Paramount’s Simon & Schuster

Apple experienced its third consecutive quarter of declining sales in Q2, with a 1.4 percent slip to revenue of $81.8 billion. But the Cupertino-based company managed to generate record performance in its Services division, up 8.2 percent to $21.21 billion. Sales of the company’s largest device segment, iPhones, underperformed estimates with $39.7 billion in sales, a 2.4 percent dip year-over-year. Overall, however, Apple slightly overperformed Wall Street expectations, which were forecast at $81.64 billion for the quarter ending in June. For Q2, Apple reported 1 billion paid subscriptions — including Apple Music, Apple TV+ and third-party apps. Continue reading Apple’s Sales Decline Tempered by Record for Services Arm

Amazon’s AWS cloud-computing unit generated $22.1 billion in Q2, a 12 percent year-over-year gain that was a highlight in a strong quarter for the e-commerce giant. The company generated a total of $134.4 billion in revenue for the period ending in June, an 11 percent increase over the prior year. Advertising was also strong, jumping 22 percent to $10.68 billion. Cost-cutting and rebounding e-commerce helped propel the Seattle-based company to a quarterly profit of $6.75 billion (its strongest performance since Q4 2021), which contrasted sharply with a loss in the same period last year. Continue reading AWS, Advertising Drive Amazon to 11 Percent Revenue Gain

Social image pinboarding and shopping inspiration platform Pinterest touted its recently announced Amazon partnership and AI efforts as part of its Q2 2023 earnings, which showed a 6 percent gain in year-over-year revenue of $708 million, beating analyst expectations. Pinterest announced the multiyear partnership with Amazon that marked a Pinterest first for third-party ads. On the investor call, Pinterest CEO Bill Ready told analysts the company has been testing Amazon ads traffic and is “very pleased” with the early results. When users click on Amazon ads on Pinterest they land on Amazon’s site to complete their purchase. Continue reading Pinterest Touts AI and Amazon Partnership with Q2 Earnings

Meta Platforms had a successful Q2, reporting double-digit growth for the first time since Q4 2021. The performance was attributed to a rebound in the digital advertising sector. The good news comes with a warning, as the company says it plans to increase spending on virtual reality and artificial intelligence next year. The parent of Facebook and Instagram reported revenue of just under $32 billion for the period ending June 30, an 11 percent gain over 2022. Advertising contributed a whopping $31.5 billion, growing nearly 12 percent year-over-year. Continue reading Meta Sees Double-Digit Growth for the First Time Since 2021

Alphabet posted a strong second quarter, with Google Cloud revenue climbing 28 percent year-over-year, to $8.03 billion, and overall revenue gaining 7 percent, to $74.6 billion, exceeding analyst expectations, as did the $18 billion in net income. Google Search ad sales grew by nearly 5 percent, to $42.6 billion, while ad sales from Google’s YouTube streaming platform rose almost 4 percent, to $7.7 billion. YouTube had in recent quarters sustained revenue declines, attributed to increased competition from TikTok and others, but was finally able to reverse the downward trend. Continue reading Search Stays Strong and YouTube Rebounds in Alphabet Q2