Snapchat just changed how it compensates the companies that supply content for its Discover section. Rather than share ad revenue, Snapchat plans to pay content partners a flat licensing fee — similar to what traditional TV networks do. When Discover launched in 2015, Snapchat shared ad revenue, with the terms varying depending on the specifics of the partnership and sales team. The new plan is a win-win: Snapchat will fully control its ad inventory and publishers will have a guaranteed and reliable compensation for content. Continue reading Snapchat Swaps Shared Ad Dollars with New Licensing Deals

While Twitter has shown its potential as a communication and news-sharing platform, and continues to experiment (for example: streaming deals with the NFL and a SoundCloud partnership), the company has struggled to turn a profit and satisfy investors. With all the recent hype surrounding a possible acquisition, NPR asks if “it’s worth pondering the idea of Twitter getting out from under the pressures of Wall Street and turning itself into a nonprofit.” Rather than bending to the relentless pressure of competing for growth and profit, pursuing ad revenue and adjusting how its algorithms sort tweets, the platform could possibly prove most useful to journalists, politicians and grassroots movements if it was “free of investor pressure.” Continue reading Could Twitter Better Serve Communities as a Social Non-Profit?

Netflix is continuing its push into cinema by signing a deal with luxury theater-chain iPic Entertainment. The agreement would allow Netflix original films to screen theatrically the same day they are made available via the streaming service. Ten Netflix movies over the next year will screen in iPic theaters in New York City and Los Angeles, according to Netflix chief content officer Ted Sarandos, who indicates the deal could be extended. The agreement also includes the option for films to screen at the chain’s 13 other locations or independent theaters. Continue reading Netflix, iPic to Simultaneously Offer Movies Online, in Theaters

BlackBerry, whose phones were once so popular they were dubbed “Crackberry,” has licensed its brand to a group owned by Indonesian phone companies. The Canadian company — whose market share is now in the single digits in North America and Europe — made this decision despite the fact that it recently adopted the Google Android operating system. The strategy, led by executive chair/chief executive John Chen, is intended to evolve BlackBerry into a software and wireless device security business. Continue reading BlackBerry Outsources Handset Biz, Shifts Focus to Software

In an effort to lure content creators and better compete with social platforms such as Facebook and Snapchat, Twitter announced that it will share 70 percent of ad revenue with users that upload videos. “Those are much better margins than what a video creator can get on the world’s biggest video site, Google’s YouTube, which pays creators 55 percent of the video ad revenue,” reports Wired. Twitter has reportedly already applied the 70-30 revenue split with some big names, including the National Hockey League and Major League Baseball. However, Twitter is playing catch up; YouTube generates billions of daily video views, and Facebook algorithms have been emphasizing live video in the platform’s News Feed. Continue reading Twitter Now Shares Advertising Revenue with Video Creators

This year, for the first time, streaming music topped digital downloads as the largest source of music revenue in the U.S. The two biggest sources are Spotify and Apple Music, but SoundCloud, Deezer, Tidal and Google Play are also active. Now, both Amazon and Pandora are readying their entries into this crowded market. Both companies have almost locked-up licensing deals with the largest record labels. Amazon plans to launch its on-demand service as early as September, and Pandora will unveil its service later this year. Continue reading Amazon, Pandora Ready Launch of Music Streaming Services

Spotify is readying an initial public offer next year, pressured by its most recent financing. Private-equity firm TPG, hedge fund Dragoneer Investment Group and Goldman Sachs are part of a group that issued $1 billion in convertible debt, which carries an interest rate that increases until Spotify’s IPO. Investors also get a discount on shares if they convert debt into equity — 20 percent now, but increasing if Spotify delays the IPO. One problem prevents Spotify from doing so: long-term rights for the music it plays. Continue reading Spotify Prepares to Go Public, Seeks Long-Term Music Rights

Facebook is working with game engine Unity to build a dedicated, downloadable desktop gaming platform. The new platform will not require the intensive coding of Facebook’s previous SDK, making it easier for game publishers to offer iOS and Android games on the desktop. Developers now have until August 31 to get “instant access” to an alpha version of Unity 5.4 needed to build and export games to Facebook’s Web and desktop app. Facebook’s move is seen as an attempt to regain gaming revenues lost to the mobile platform. Continue reading Facebook and Unity Team to Build Desktop Gaming Platform

SNL Kagan forecasts that video revenue for U.S. cable operators will decrease 4.7 percent by 2026, despite higher monthly cable TV bills. Residential video revenue for “cable operators is projected to fall from $57.7 billion in 2016 to $55.0 billion annually in 2026, declining at a compound annual growth rate of 0.5 percent over the next 10 years,” reports Variety. While basic video subs are projected to fall from today’s 53 million to 45.4 million in 2026, there will be a 13 percent jump in broadband subs, representing $11 billion. Cable broadband subs are expected to reach 71 million by 2026, driving up revenue to $47.3 billion. Continue reading Cable TV Revenue to Decline, Broadband Subs on Upswing

International Data Corporation (IDC) projects that global revenue from public cloud services will surpass $195 billion by 2020, more than doubling this year’s forecast of $96.5 billion. The new figures, part of IDC’s Worldwide Semiannual Public Cloud Services Spending Guide, represent a compound annual growth rate of 20.4 percent over 2015-2020. Also, IDC expects that revenue from Infrastructure as a Service and Platform as a Service will increase at a faster rate than revenue from Software as a Service. Media, telecom and retail will experience the fastest revenue growth. Continue reading Cloud Services Spending to Reach $195 Billion in Four Years

The 433-million member LinkedIn, which Microsoft is in the process of acquiring for $26 billion, is moving into video. The company has chosen 500 LinkedIn “Influencers” — people with large followings who regularly post to the site — who will create 30-second (or less) videos with a LinkedIn-created app Record. The videos will be each Influencer’s response to general questions relating to LinkedIn’s mission of professional development, such as leadership challenges or technology trends. Continue reading LinkedIn Adds In-Stream Video, Initially From 500 Influencers

App analytics platform Sensor Tower reports that Niantic’s location-based, augmented reality game “Pokémon Go” is continuing its rise in popularity, with more than $200 million in net revenue generated during its first month of availability. The meteoric rise “compares favorably to in-game revenue generated by other huge in-app purchase-driven games,” notes TechCrunch. “Pokémon Go” has nearly doubled “the first month revenue of ‘Clash Royale,’ the other big in-app star this year” and “made almost four times as much as ‘Candy Crush Soda Saga’ managed during its first 30 days of availability.” “Pokémon Go” experienced a significant spike when it launched in Japan. The game was just introduced to 15 additional Asian countries. Continue reading ‘Pokémon Go’ Rakes in Over $200 Million After its First Month

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

Apple’s quarterly profit fell 27 percent to a net income of $7.8 billion in the fiscal third quarter ending June 25, compared with $10.68 billion in last year’s third quarter. This downturn, which marks a second straight quarter of reduced revenues, reflects a prolonged downturn in iPhone sales, the first since the smartphone was introduced in 2007. The smaller, less expensive iPhone SE, which debuted in March, alone enjoyed strong sales, with sales of all other models dipping. Continue reading Apple Experiences Downturn, iPhone SE Sales a Bright Spot