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

Facebook is again changing its News Feed algorithm, this time to favor postings by the users’ family and friends over those from publishers. The result will be that postings, including links, videos and photos, from publishers of all sizes will appear less prominently in users’ News Feeds. That means that The New York Times, The Washington Post, BuzzFeed, Vox Media, Vice and others will get less traffic than they have become accustomed to receiving. More than 1.65 billion users per month view Facebook’s News Feed feature. Continue reading Facebook Now Favors Friends Over Publishers in News Feed

Carnegie Mellon University’s Initiative for Digital Entertainment Analytics released a report that establishes a link between delays in international DVD releases and piracy. Delays hurt aftermarket sales, which often account for the lion’s share of a movie’s revenue, mainly because it opens the door for piracy. Although artificial delays may help movie theaters maximize their revenues, minimizing or eliminating “unneeded delays” is an important consideration, says the report. Continue reading Delays in International DVD Releases Lead to Increased Piracy

Internet giants such as Google and Facebook rely on advertising revenue to finance their various endeavors. However, that business model is now being threatened by ad-blocking software. According to a report from PageFair and Priori Data, about 20 percent of smartphone users (nearly 420 million people worldwide) now block ads when browsing online via their mobile devices. The latest figures represent a 90 percent annual increase. While the use of ad-blocking software conserves data and loads websites faster, it “is costing the global advertising industry billions of dollars a year in lost revenue,” reports The New York Times. Continue reading Ad-Blocking Now Costing Advertisers Billions in Lost Revenue

The FAA’s mandatory drone registration does not seem to be impacting UAV sales, which have grown 224 percent from April 2015 to April 2016 for a total of nearly $200 million, according to The NPD Group. Robotics Trends reports the FAA’s database indicates there are now “461,433 registered hobbyist drone owners in 39,471 zip codes.” NPD notes that DJI is the clear U.S. market leader at 49 percent, followed by Parrot (19 percent), Protocol (6.3 percent), Yuneec (5.6 percent) and 3D Robotics (4 percent). Drones with 4K cameras represented more than one-third of sales for the 12 month period, and GPS-outfitted drones accounted for 64 percent of sales. Continue reading Drone Sales Grow 224 Percent Year-Over-Year to $200 Million

Depending on who you believe, Apple is either ready to “completely terminate” iTunes music downloads in as little as two years — or has no plans at all to shut down this still-valuable source of revenue. Even as streaming gains dominance, music downloading still plays a lucrative role, say some. Sources deep inside Apple revealed discussions about the potential timetable for ending music download offerings, with a possibility of staggered shutdowns beginning in the U.S., U.K. and some European and Asian countries. Continue reading Apple May or May Not Put an End to iTunes Music Downloads

Action cam manufacturer GoPro is delaying the release of its Karma drone from June to the end of the year after the company announced a $107.5 million quarterly loss. “The drone’s success is critical to GoPro’s efforts to attract new users to its devices,” reports The Wall Street Journal. “The drone delay adds to GoPro’s string of problems launching recent products. Last year, GoPro slashed the price by half of its entry-level camera, the Hero 4 Session, to entice consumers.” While revenue dropped 49 percent from the previous year, the numbers weren’t as bad as analysts predicted. CEO Nick Woodman said the company is optimistic about “lessons learned from last year,” and is, “seeing the benefits of our simplified product lineup today.”

Continue reading In Wake of Q1 Loss, GoPro Pushes Drone Launch to Holidays