LT Weekly: Aug 16, 2024

Advertising/Ad Agencies/Ad Tech

• Dentsu revised its full-yr operating income forecast to 107.1bn yen, down from the previous forecast of 135.4bn yen, missing the estimate of 128.15bn yen. The co now expects net income of 36.7bn yen, a significant decrease from the 61.7bn yen it originally forecasted and below the estimate of 64.41bn yen. The dividend is forecasted to be 139.50 yen, slightly below the estimated 140.55 yen. (Smartkarma)
• Kamala Harris’ presidential campaign is launching a $90mn advertising effort over the next three weeks in Georgia and six other battleground states to introduce the Democrat to voters and sharpen the contrast w/ Republican Donald Trump. The media buy marks her campaign’s largest-yet investment in messaging to voters w/ just 2.5 months until Election Day in Nov. It comes on the heels of a $50mn worth of ads booked last month shortly after Harris replaced President Joe Biden at the top of the party’s ticket. (WABE)
• Meta’s planning to update its approach to ad campaign measurement and attribution, in order to better link user’s Meta ads to conversions, while also giving Meta more data points to work w/ to optimize campaigns. Coming in the second half of the yr, Meta’s annc’d a range of ad optimization and integration options, which could have a significant impact on performance measurement as part of its ongoing work to build AI-enabled automation solutions that allow any biz to grow. (Social Media Today)
• SAG-AFTRA struck a deal with AI startup Narrativ for audio voice replicas in digital advertising that the union asserts sets “a new standard” for ethical use of the tech and also makes it easy for performers to give consent and get paid. Narrativ’s new agreement w/ SAG-AFTRA promises to give the union’s 160,000 members the oppty to add themselves to a database that connects voice talent to advertisers. (Variety)
• The Justice Department is reportedly considering a push for a breakup of Google’s business after a federal judge ruled the co has an illegal monopoly over online search. DOJ attorneys could ask Judge Amit Mehta to order Google to sell portions of its business, with potential candidates for divestment including its Android operating system, Chrome web browser, and advertising platform AdWords, Bloomberg reported. (New York Post)

Artificial Intelligence/Machine Learning

• 8mn AI-capable PCs were shipped in Q2:24, according to the latest Canalys data. These devices are defined as desktops and notebooks that include a chipset or block for dedicated AI workloads, such as an NPU. Shipments of AI-capable PCs represented 14% of all PCs shipped in the quarter. (CANALYS)
• A group of visual artists can continue to pursue claims that Stability AI, Midjourney, DeviantArt and Runway AI’s artificial intelligence-based image generation systems infringe their copyrights. US District Judge William Orrick said the artists plausibly argued that the companies violate their rights by illegally storing their works on their systems. (XM – Global Broker in Forex and CFD Trading)
• A study by researchers from Cornell and other institutions found that all generative AI models, including OpenAI’s GPT-4o and Google’s Gemini, still produce hallucinations, with only about 35% of outputs being hallucination-free. Models vary in their accuracy based on the information sources they’ve been trained on, with some avoiding errors by refusing to answer difficult questions. Despite claims of improvement, hallucinations remain a persistent issue, suggesting the need for better fact-checking tools and human oversight during AI development. (TechCrunch)
• Alphabet said it was expanding its AI-generated summaries for search queries to six new countries, just two months after it rolled back some capabilities following a problem-riddled launch. The Co made AI Overviews, which are displayed atop a search results page before traditional links to the Web, available to all US users in May after spending one yr trialing a limited earlier version. (AsiaOne)
• Chinese courts have been handing down a series of judgments related to generative AI, indicating how Beijing views the technology and aims to take the lead in setting standards. In Apr, a Beijing court made China’s first ruling on a person’s right to their voice. A voice actor had sued several cos for AI-replicated voice infringement. The court found that some of the cos had indeed infringed on the plaintiff’s rights and ordered them to pay 250,000 yuan ($35,000) in damages. (Nikkei Asia)
• On August 7, the FCC voted unanimously to pass a new set of rules aimed at putting the brakes on AI-driven robocalls. AI-powered robocalls are the latest trick in the scammers’ playbook, and they’re getting more sophisticated by the day. FCC Chairwoman Jessica Rosenworcel is leading the charge to give consumers the upper hand. “Bad actors are already using AI technology in robocalls to mislead consumers and misinform the public,” she said. (Cord Cutters News)
• OpenAI annc’d an update on X stating: “there’s a new GPT-4o model out in ChatGPT since last week”. While the account did not provide further information immediately following that post, sources at OpenAI told that the new model was updated based on user feedback. Prior to the announcement, users noted that the underlying model powering ChatGPT, OpenAI’s GPT-4o, seemed to be behaving differently and better than in the recent past. (VentureBeat)

Audio/Music/Podcast

• Meta and Universal Music Group annc’d an “expanded global, multi-yr agreement. The deal will further evolve the creative and commercial oppties” for UMG artists and Universal Music Publishing Group songwriters across Meta’s network of platforms, including Facebook, Instagram, Messenger, Horizon, Threads, and, for the first time, WhatsApp. Terms of the deal were not disclosed. (Variety)
• Spotify will begin showing in-app pricing information for iPhone users in the European Union starting Aug 14, following a yearslong legal battle against Apple. In an update to an old blog post, Spotify says that EU iPhone users will now see things like promotional offers and pricing information for each subscription tier — including how much a plan costs once a promotion ends. (The Verge)
• Warner Music Group annc’d that its Board of Directors declared a regular quarterly cash dividend of $0.18 per share on WMG’s Class A Common Stock and Class B Common Stock. The dividend is payable on Sept. 4, 2024, to stockholders of record as of the close of biz on Aug. 27, 2024. (Yahoo Finance)

Broadcast/Cable Networks

• A+E Networks underwent a round of staff cuts. Every division of the Co, ncluding programming, mkting and public relations at outlets including Lifetime, A&E, and History, were impacted by the layoffs. Among those let go, Lifetime senior VP of unscripted development and programming Amy Savitsky has departed the Co. The layoffs come as part of an overall industry downsizing, particularly in the cable industry. (Yahoo News)
• TelevisaUnivision is adding to its sports portfolio. The Co inked a multi-yr deal with Major League Baseball, including multiple new windows of programming, as well as playoff games. TelevisaUnivision networks will begin broadcasting MLB games Aug 20, continuing through the postseason. The Co also has exclusive Spanish-language rights to the American League Division Series and American League Championship Series games. (The Hollywood Reporter)
• The CW Network and Gray Media said they renewed the affiliation agreements covering 38 of Gray’s local TV stations. The Gray stations reach ~12mn TV households, representing ~10% of the US. Financial terms were not disclosed. Last month, the CW’s owner Nexstar Media Group and Paramount Global reached an affiliation deal that gave the CW coverage in Detroit and Miami. (Broadcasting Cable)

Broader Connectivity

• Indian telecom conglomerate Bharti Global has acquired a 24.5% stake in BT Group from Altice UK. BT Group’s CEO, Allison Kirkby, welcomed the investment, calling it a significant vote of confidence in BT’s long-term value and strategy. She highlighted BT’s long-standing relationship with Bharti and expressed optimism about future collaboration. (ADVANCED-TELEVISION)

Broader Consumer Internet

• A slew of US federal agencies is working to make it easier for Americans to click the unsubscribe button for unwanted memberships and recurring payment services. A broad new government initiative, dubbed “Time Is Money,” includes a rollout of new regulations and the promise of more for industries spanning from healthcare and fitness memberships to media subscriptions. (Boston.com)

Broader Media & Entertainment

• Longtime YouTube and Google executive Adam Smith has been named Chief Product & Technology Officer, Disney Entertainment and ESPN. He takes the senior post after the exit in June of Aaron LaBerge, who is now CTO at PENN Entertainment, Disney’s partner on ESPNBet. The Smith hire was annc’d by Disney Entertainment Co-Chairmen Alan Bergman and Dana Walden and ESPN Chairman Jimmy Pitaro, to whom he will jointly report. (Deadline)

Cable/Pay-TV/Wireless

• China Unicom reports a robust first half of 2024 with a 2.9% increase in operating revenue to RMB197.3bn and an 11.3% rise in profit attributable to equity shareholders, reaching RMB13.8bn. CapEx decreased by 13.4% to RMB23.9bn, indicating efficient cost management. The co also annc’d a 22.2% yr/y increase in interim dividend to RMB0.2481 per share. (TipRanks Financial)
• During EchoStar’s Q2 earnings call last week, CFO Paul Orban acknowledged the co currently “[does] not have the necessary cash on hand” to fund Q4 operations or pay off the $1. 98bn in debt set to mature on Nov 15. As of June 30, the company had $521mn in cash and cash equivalents at the ready. EchoStar closed out the quarter w/ 8.07mn pay-TV subscribers, a head count that includes 6.08mn Dish TV customers, w/ Sling TV accounting for the remainder. (Sportico.com)
• Nielsen announced that starting in January, its local TV ratings will use a combination of big data from set-top boxes and smart TVs with traditional viewer panels as the new currency in all markets, eliminating the parallel transaction period. This change aims to address challenges in local viewership measurement due to fragmented audiences and small panel sizes. Nielsen’s panel-only data will remain for research, while its big data integration is under review by the Media Rating Council. (Broadcasting Cable)
• Rakuten Group and Macquarie Asset Management annc’d that Rakuten Mobile will raise between JPY150-300bn (~$1-2bn) in funds for the sale and leaseback of a portion of its mobile network assets w/ a consortium of global leading infrastructure investors, led by Macquarie Asset Management. Through this arrangement, Rakuten Mobile said it will continue to manage and operate these mobile network assets in Japan. (RCR Wireless News)
• Spectrum News has launched a local linear TV news network serving the St.Louis metropolitan area. Spectrum News St. Louis features local headlines at the top and bottom of every hour and hyperlocal weather forecasts every 10 minutes on the 1s. The news network is also available to Spectrum customers via the Spectrum News App for mobile, Xumo Stream Box, Roku and Apple TV, Spectrum said. (TVTechnology)
• US and Sweden are the latest to partner up, with the pair recently signing a technology and science cooperation agreement. “We intend to engage regularly and focus on cooperation in next generation communications, including 6G and beyond, as outlined in this vision for the mutual benefit of the US, the Kingdom of Sweden and the wider global community,” the US Department of State said in a statement. The move comes as governments, operators and vendors try to get a handle on how to manage the emergence of 6G early on. (Fierce Network)

Cloud/DataCenters/IT Infrastructure

• Wayra, Telefonica’s corporate venture capital arm, has invested in Nearby Computing, a computing orchestration and automation startup. The investment is part of a $7mn Series A financing round designed to drive Nearby Computing’s expansion plans and consolidate its market position. (THEFASTMODE)

Cybersecurity/Security

• Almost 2.7bn records of personal information for people in the US were leaked on a hacking forum, exposing names, social security numbers, all known physical addresses, and possible aliases. The data allegedly comes from National Public Data, a Co that collects and sells access to personal data for use in background checks, obtaining criminal records, and for private investigators. (BleepingComputer)
• California residents will soon be able to store their driver’s license or state ID in their Apple Wallet or Google Wallet apps, as the state’s govt annc’d that support for digital IDs is launching in the coming weeks. Californians w/ an ID in the Apple Wallet or Google Wallet app will be able to use their mobile devices to present their ID in person at select TSA security checkpoints and bizs. They can also use the app to verify their age or identity in select apps. (TechCrunch)
• The FBI said it seized the servers of a ransomware and extortion gang called Radar (aka Dispossessor). Radar’s website features a message from law enforcement, reading: “This website has been seized.” In a statement, the feds said they seized the gang’s domains and servers located in the United Kingdom and Germany. Radar/Dispossessor had at least 43 victim Cos since the gang started out in August 2023, the agency said. (TechCrunch)

eCommerce/Social Commerce/Retail

• Amazon has opened a £500mn state-of-the-art fulfilment centre in Leeds, part of the Co’s more than £1.5bn investment in West Yorkshire since 2010. The robotic facility at the city’s Gateway 45 logistics park uses advanced technology across three floors of Amazon Robotics to stow, pick and ship customer orders. The site is close to an Amazon delivery station and an Amazon Robotics sortation centre, and less than ten miles from the Wakefield fulfilment centre which began operations in Oct. 2022. (Retail Gazette)
• Home Depot topped quarterly expectations, but cautioned that sales will be weaker than expected in the back half of the yr as high interest rates and consumer uncertainty dampen demand. The co said that it now expects full-yr comparable sales to decline by 3% to 4% compared with the prior fiscal yr. It had previously expected comparable sales, a metric that takes out the impact of store openings and closures and other one-time factors, to decline about 1%. (CNBC)
• On Holding reported record net sales of 567.7mn Swiss francs in Q2, up 27.8% from the same period a yr ago. Q2 gross profit margin was 59.9%, which was up from 59.5% in the yr-ago period. Net income came in at 30.8mn Swiss francs, and adj diluted EPS increased to 0.14 Swiss francs from 0.04 Swiss francs a year ago. Adj EBITDA was 90.8mn Swiss francs. Over the last 12 months, On has achieved net sales of over 2bn Swiss francs. (Footwear News)
• Samsonite International’s board approved a dual listing in the US to enhance liquidity and global investor access. Samsonite, which is listed in Hong Kong, said that the US is the appropriate venue based on the Co’s “global footprint, growth drivers, and strategic priorities. Samsonite’s shares have dropped 18% in Hong Kong this yr, valuing the Co at HK$30.9bn ($4bn). (Bloomberg)
• The Federal Trade Commission’s crackdown on fabricated reviews and fake consumer and celebrity testimonials has produced new official federal regulations to prevent the use of these practices on websites and e-commerce hubs. The FTC approved the new rules against the buying and selling of fake reviews and product testimonials w/ a 5-0 vote on Aug 14. The rules will become effective in 60 days. (Engadget)
• The Summer Olympics proved to be a significant win for Nike, as the global event incr’d demand for the Co’s new product launches and helped it surpass competitors, per Similarweb. In the opening week of the Olympics, Nike and Puma managed to increase visits to their D2C sites, while Adidas, Hoka and On all saw their visits decline compared to the week before. (Apparel Resources)
• US CPI figures show overall food prices rose by 2.2% from Jun 2023 to Jun 2024. But food prices at restaurants rose by a lot more than food prices at grocery stores and supermarkets. Two key ingredients feed the demand for restaurant orders: convenience and habit. It’s hard to put a price on free time and relaxation, but it apparently beats the cost of cooking and washing the dishes. (Forbes)
• US retail sales accelerated in July by the most since early 2023 in a broad advance that points to a resilient consumer, even in the face of high prices and borrowing costs. The value of retail purchases, unadjusted for inflation, increased 1% in July and helped by a sharp snapback in car sales, Commerce Department data showed. Excluding autos and gasoline stations, sales were up 0.4%. (Bloomberg)
• Walmart CEO Doug McMillon reported that while many grocery prices have fallen, inflation remains stubborn in dry groceries and processed foods. Walmart is pressuring suppliers to reduce costs, but some are still pushing for increases. Walmart’s Q2 results showed revenue growth from higher unit sales, not price hikes. Despite steady or reduced prices on many items, costs for dairy, eggs, and meat continue to rise. Walmart’s strong performance sparked rallies in other retail stocks. The company emphasizes it’s lowering prices, with profits growing from higher-margin businesses, not retail price increases. (CNBC)
• Walmart raised its forecast for the yr, as qtrly rev grew nearly 5%, the Co’s stores and website drew more visits, and sales outside the grocery dept improved. Walmart said it now expects sales to rise by 3.75-4.75% for the full yr, and adjusted earnings to come in between $2.35-2.43 per share. Analysts also expected adjusted earnings of $2.43 per share for the yr — the top-end of Walmart’s guidance. (CNBC)

EV/ Autonomous Vehicles

• Chinese autonomous vehicle co WeRide has received the green light to test its driverless vehicles w/ passengers in California. The step comes as WeRide begins the process to go public on the US stock market at a nearly $5bn valuation. As of Aug. 2, WeRide holds two permits from the California Public Utilities Commission: A drivered pilot permit and a driverless pilot permit. The permits do not yet allow WeRide to charge passengers for rides, and the service isn’t available to the general public. (TechCrunch)
• Ford and TXU Energy have partnered up to provide customers free EV charging at home. Owners of newer Ford EVs and plug-in hybrids who sign up for TXU’s Free EV Miles program can get full credit back on their utility bill if they charge up during TXU’s free 18-hour window. The “first-of-its-kind” deal will incentivize customers to charge during off-peak hours. Free hours will be between 7:00PM and 1:00PM the next day. (The Verge)
• Ride-hailing and taxi drivers in China are facing threat of job loss from AI as thousands of robotaxis hit Chinese streets, economists and industry experts said. Self-driving technology remains experimental, but China has moved aggressively to green-light trials compared to the US. At least 19 Chinese cities are running robotaxi and robobus tests, disclosures showed. (Business Reporter)
• Rivian halted production of its electric delivery vans for Amazon due to a parts shortage, adding to its supply chain challenges. Over 1,000 vans are parked at its Illinois plant. Despite the halt, Rivian plans to make up for the lost production but hasn’t provided a timeline. Rivian has delivered over 15,000 vans to Amazon, with more in progress, and is exploring deals with other companies like DHL. (EV – EVerything about EVs.)
• Waymo plans to start testing its fully autonomous vehicles w/ no human safety driver on freeways in the San Francisco Bay Area. Its employees will be the first guinea pigs, and initial testing will start outside rush hour w/ “less than a handful” of vehicles. The move comes as Waymo, flush w/ an addt’l $5 bn investment from Alphabet, pushes to expand in San Francisco. (TechCrunch)

Film/Studio/Content/IP/Talent

• Paramount TV Studios, a production facility originally aimed at getting Paramount Pictures back into the biz of making TV series, will shut down, the latest bout of cost cutting by parent corporation Paramount Global, All current series and development projects made under the Paramount Television Studios umbrella will move to CBS Studios. (Variety)

FinTech/InsurTech/Payments

• Amazon teamed up w/ Barclays to launch a co-branded credit card that rewards users for their everyday spending. Amazon Barclaycard customers can earn 1% rewards on purchases made on the site and 0.5% rewards on all other spending for the first six months. Prime members can also benefit from an additional 2% back from Amazon spending during the Co’s designated shopping events. (Retail Gazette)

Handheld Devices & Accessories/Connected Home

• AT&T confirmed that it will not be offering Google’s newest Pixel Fold to its customers. AT&T sold last yr’s original Pixel Fold and still plans to sell much of the rest of Google’s new lineup, including the Pixel 9, 9 Pro, 9 Pro XL, and Pixel Watch 3. That said, other carriers including Verizon and T-Mobile, will be selling Google’s new foldable, which will go on sale on Sept 4 and start at $1,799. (CNET)

Last Mile Transportation/Delivery

• Grab shares slumped after the co reported quarterly rev growth that trailed estimates. The stock slid 5.5% at 9:58 a.m. in New York on Thursday (Aug. 15) after the co said rev rose 17% to $664mn in the three months through Jun. 2024, missing the $676.9mn analysts predicted on avg. Adjusted earnings before interest, taxes, depreciation and amortization were $64mn, roughly in line w/ expectations. (Yahoo Finance)

Macro Updates

• Inflation rose as expected in July, driven by higher housing-related costs, according to a Labor Department report Wednesday (Aug.14) that is likely to keep an interest rate cut on the table in September 2023. CPI increased 0.2% for the month, putting the 12-month inflation rate at 2.9%. Excluding food and energy, the core CPI came in at a 0.2% monthly increase and a 3.2% annual rate, meeting expectations. (CNBC)
• New Zealand’s central bank slashed its benchmark cash rate for the first time since March 2020, sending the kiwi dollar tumbling as policymakers flagged more cuts over the coming months, saying inflation was converging on its target of 1% to 3%. The decision to reduce rates by 25 basis points (0.25%) to 5.25% came almost a yr ahead of the Reserve Bank of New Zealand’s own projections. Rates are seen near 3.0% by the end of 2025, well below the RBNZ’s projection. (Reuters)
• The latest CPI data from the Office for National Statistics showed that food inflation remained unchanged at 1.5%, after falling for the previous 15 months after it hit a 45-yr high of 19.2% in Mar. 2023. Clothing and footwear inflation rose 2.1% in Jul. 2024, up from 1.6% the month before, while furniture and household goods further deflated 1.7% last month. The headline inflation figure, taking into account costs such as housing, transport, and energy, rose above the Bank of England’s 2% target to 2.2%. (Retail Gazette)
• The producer price index increased 0.1% in July 2024, less than 0.2% forecast, opening the door further for the Federal Reserve to start lowering interest rates. Economists surveyed by Dow Jones had been looking for an increase of 0.2% on both the all-items and the core readings. A further core measure that also excludes trade services showed a rise of 0.3%. On a yr-over-yrbasis, the headline PPI increased 2.2%, a sharp drop from the 2.7% reading in Jun. (CNBC)

Satellite/Space

• AT&T and Verizon are urging telecom regulators to reject a key part of SpaceX’s plan to offer cellular svs w/ T-Mobile, claiming the satellite system will interfere w/ and degrade svs for terrestrial mobile broadband networks. Filings urging the Federal Communications Commission to deny SpaceX’s request for a waiver were submitted by AT&T and Verizon this week. As part of that plan, SpaceX is seeking a waiver of FCC rules regarding out-of-band emission limits. (Ars Technica)
• During a panel at the Mountain Connect show, the CEO of the Fiber Broadband Association criticized SpaceX’s Starlink for seeking BEAD funds, arguing it’s “absurd” to use federal funds for LEO satellite broadband. The Wireless Internet Service Providers Association countered that BEAD funding won’t cover fiber everywhere, advocating for alternative technologies like fixed wireless. The NTIA will ultimately decide on the eligible technologies. (Fierce Network)
• EQT annc’d that the EQT Infrastructure VI fund entered into exclusive negotiations to acquire a majority stake in Eutelsat Group’s Ground Station Infrastructure Business. EQT would own 80% of the capital, while Eutelsat Group would remain committed as long-term shareholder, anchor tenant, and partner of the new Co w/ a 20% holding. The contemplated transaction values the new entity at an enterprise value of EUR790mn. (THEFASTMODE)
• SpaceX violated environmental regulations by repeatedly releasing pollutants into or near bodies of water in Texas, a state agency said in a notice of violation focused on the Co’s water deluge system at its Starbase launch facility. The notice from the Texas Commission on Environmental Quality came five months after the EPA Region 6 office informed SpaceX that it violated the Clean Water Act w/ the same type of activity. (CNBC)
• SpaceX will fly the first-ever human spaceflight over the Earth’s poles, possibly before the end of this yr. The private Crew Dragon mission will be led by a Chinese-born cryptocurrency entrepreneur named Chun Wang, who will be joined by a polar explorer, a roboticist, and a filmmaker. The mission will launch into a polar corridor from SpaceX’s launch facilities in Florida and fly directly over the north and south poles. (Ars Technica)
• The Telecommunications Regulatory Commission of Sri Lanka has issued a license to Starlink to provide the country with satellite broadband services. Starlink had approached Sri Lanka in Mar. with a proposal to set up operations. This development was made possible by a new telecommunications bill passed by the country’s parliament last month. The bill, which amended the law for the first time in 28 yrs, will “create a more competitive and fair market in the telecommunications sector,” according to the Parliament’s website. (RCR Wireless News)

Social/Digital Media

• Buzzfeed reported total revenue of $47mn for the Q2, down from $62mn a yr ago. Advertising rev declined 19% y/y to reach $23.8mn, w/ programmatic advertising rev at $16mn compared to $15.5mn a yr ago. Content rev plunged 48% to $11.4mn. The co’s net loss is improving, w/ the media conglomerate reporting a loss of $6mn compared to a loss of $22mn a yr ago. (The Hollywood Reporter)
• Elon Musk’s interview of Donald Trump on X was nearly derailed by technical glitches in the first minutes of the scheduled start time. Users trying to log on to the event reported that they could not join X’s livestream platform. Musk blamed a cyberattack, saying “There appears to be a massive DDOS attack on.” After nearly an hour of troubleshooting, the conversation started in earnest and went another two hours. (CNBC)
• TikTok annc’d that it’s adding group chats to its platform. Users can now create group chats w/ up to 32 people to chat and share content together. As w/ individual messages, group chats are only available to users above the age of 15. TikTok says it has added safety measures to protect teens between the ages of 16 and 17. Everyone, including teens, can only be added to a group chat by a mutual follower. (TechCrunch)

Software

• Apple threatened to remove creator platform Patreon from the App Store if creators use unsupported third-party billing options or disable transactions on iOS instead of using Apple’s own in-app purchasing system for Patreon’s subscriptions. In a blog post and email to Patreon creators, the Co says it’s begun a 16-month-long migration process to move all creators to Apple’s iOS in-app purchase system by Nov 2025. (TechCrunch)
• India’s antitrust body recalled two reports that detailed alleged breaches of competition law by Apple, which complained that the regulator had disclosed commercial secrets to competitors. The move will prolong an already delayed investigation, which began in 2021, centering on Apple’s alleged abuse of its dominant position in the apps mkt to force devs to use its proprietary in-app purchase system, at a fee of up to 30%. (Yahoo Finance)

Sports/Sports Betting

• BBC Sport’s coverage of the Paris 2024 Olympic Games was streamed a record-breaking 218mn times online. This more than doubled the Tokyo Olympic Games total of 104mn, w/ 12.2mn people signed in to BBC iPlayer accounts to watch coverage. BBC One enjoyed consistently high viewing figures throughout the duration of the competition w/ a Total TV reach (15+ mins) of 36.1mn watching Paris 2024 on BBC TV. (ADVANCED-TELEVISION)
• DraftKings will not move forward w/ the proposed gaming tax surcharge, a decision that comes just two weeks after initially planning to implement the charge in high-tax states. The Co shared its reversal through a statement, citing customer feedback as the primary reason for the change in direction, though competitor FanDuel also stated that it wouldn’t implement a similar surcharge. (GAMBLINGINSIDER)
• Flutter Entertainment shares soared as much as 11% in extended trading after the co, the operator of the FanDuel online sportsbook, reported Q2 sales and profit that beat analysts’ expectations. Flutter, which recently moved its stock listing to the New York Stock Exchange from London, generated revenue of $3.61bn in the quarter, exceeding estimates of $3.37bn. Flutter said it didn’t plan to match rival DraftKings in introducing a player surcharge in high-tax states. (Yahoo Finance)
• Football continues to dominate the payments sector in 2024, w/ 140 deals totaling $371.6mn (€340.2mm) annually. Mastercard’s $195mn sponsorship of the UEFA Champions League highlights the game’s commercial value. UEFA’s substantial annual expenditure, followed by FIFA and other major leagues, reinforces the sport’s global appeal. Visa also makes a strong impact w/ high-profile partnerships. (ADVANCED-TELEVISION)
• Fresh off their decision to exit Bally Sports for a local broadcast TV deal w/ Scripps Sports back in June, the NHL’s defending Stanley Cup champion, the Florida Panthers, have to take their games direct-to-consumer. Scripps Sports will broadcast Panthers games on local stations WSFL (channel 39), WHDT (9) and a to-be-annc’d Fort Myers station. And ViewLift will create an app-based subscription DTC platform for fans to stream Panthers games, just as it has for the NHL’s Vegas Golden Knights and Washington Capitals. (NextTV)
• LeBron James, Steph Curry, and Kevin Durant leading the US men’s basketball team over France in the final game at the Paris Summer Olympics brought NBC and Peacock the biggest ratings for a gold medal game since 1996. The gold medal game averaged 19.5mn viewers on Saturday (Aug 10) afternoon, and its tight finish peaked at 22.7mn, per total audience stats from Nielsen and Adobe Analytics. (Broadcasting Cable)
• NBCUniversal said primetime Olympics coverage on both Paris time (2 pm to 5 pm ET) and US time (8 pm to 11 pm) averaged a Total Audience Delivery of 30.6mn viewers across all platforms, up 82% from the pandemic-delayed Tokyo Summer Olympics in 2021. Led by Peacock, NBCU streamed 23.5bn minutes of Olympic programming, up 40% from all previous summer and winter games combined. In primetime, Peacock averaged 4.1mn viewers daily. (Broadcasting Cable)
• The Dallas Cowboys, despite not winning a Super Bowl since 1996, are valued at $10.32bn, making them the first sports franchise to surpass $10bn. This places them atop Sportico’s list of NFL team valuations, followed by the Los Angeles Rams ($7.79bn) and New York Giants ($7.65bn). Collectively, the 32 NFL franchises are worth $190bn. (ESPN.com)
• The Tampa Bay Buccaneers recently reportedly turned down a proposal to buy the franchise for a tick above the $6.05bn that a group led by Josh Harris paid for the Washington Commanders last yr. If accepted, it would have set a record for the transaction of an NFL team and a global record for a control sale of a sports team.” It was noted that the interest came from someone deemed a “qualified buyer”. (The Pewter Plank)

Tech Hardware

• A recent SEC filing shows that Intel sold its stake in Arm Holdings in Q2. The news comes amid the massive job cuts taking place at the co, signaling a larger shakeup w/in the co as it struggles to keep pace w/ competitors like AMD and Qualcomm in the current semiconductor climate. Intel may be also awarded up to $11bn in loans and will be able to claim federal tax credits that could cover as much as 25% of the expense of its US expansion projects. (RCR Wireless News)
• Apple, seeking new sources of rev, is moving forward w/ the development of a pricey tabletop home device that combines an iPad-like display w/ a robotic limb. The Co now has a team of several hundred people working on the device, which uses a thin robotic arm to move around a large screen. The product, which relies on actuators to tilt the display up and down and make it spin 360 degrees, will offer a twist on home products like Amazon.com’s Echo Show 10 and Meta Platforms’ discontinued Portal. (The Straits Times)
• Cisco is cutting thousands of jobs in a second round of layoffs as it shifts focus to growing biz segments like cybersecurity and AI. Early reports indicate the number of affected employees will be similar to the 4,000 cut in Feb, if not slightly higher. Disappointing mkt demand and supply-chain constraints in Cisco’s main biz, routers and switches, is being blamed for the cuts and the heightened focus on AI. (RCR Wireless News)
• Google unveiled four Pixel 9 phones, including three Pro models and a foldable, integrating its AI vision with new Gemini features. The phones showcase Google’s AI capabilities, like the Gemini Live voice chatbot and Gemini Assistant, which enhance user experience through natural conversations and contextual responses. Privacy is emphasized, with some AI processing done on-device. Gemini features will also integrate with various Google apps for seamless functionality. (BGR)

Towers/Fiber

• Canada’s telecommunications regulator is expanding a decision that allows smaller internet providers to use rivals’ fiber networks to offer their services to customers. It annc’d that starting next Feb., large telephone cos that own fiber internet networks, such as Bell Canada, Telus Corp. and SaskTel, must give competitors access to their networks for a fee. The decision applies to networks nationwide. (Yahoo Finance)
• China Tower renewed multi-yr framework deals w/ China Telecom and China Unicom. This could help pave the way for an expected surge in demand for IoT monitoring data and data analysis svs related to the Co’s “Smart Tower” biz. In a filing, the Co said these agreements cover the leasing of transmission and cloud resources, including telecoms electricity cables, telecoms equipment, cloud private line, and cloud equipment. (RCR Wireless News)
• IHS Towers and MTN Group strengthened their strategic partnership by renewing and extending communications infrastructure deals across six African markets. The agreement covers ~26,000 MTN tenancies on IHS Towers infrastructure in Nigeria, Rwanda, Côte d’Ivoire, Cameroon, Zambia, and South Africa, extending until Dec 2032. (STOCKTITAN)
• Nextlink Internet, one of the fastest growing rural internet service providers in the U.S., announces additional capital infusions to speed deployment of fiber-optic service in Texas. Nextlink plans to use this capital to serve an additional 50,000+ rural and small-town homes and businesses with fiber optic services at speeds up to 5 Gbps symmetrical. Cable One has infused an additional $20mn of equity capital into Nextlink Internet, paired with an $80mn debt investment led by CanAm Enterprises, Inc. CEO and majority owner Bill Baker also invested additional equity capital into the company as part of the capital raise. (THEFASTMODE)
• SK Telecom signed a Memorandum of Understanding w/ Nokia to verify and commercialize Fiber Sensing, an AI-powered fixed network technology that detects various environments that can affect fixed network optical cables. SK Telecom and Nokia plan to detect earthquakes, climate change, and unexpected issues due to constructions around the fixed network using this technology, helping to stabilize networks in advance. (THEFASTMODE)

Video Games/Interactive Entertainment

• Activision will soon let players install different parts of Call of Duty games separately to combat colossal file sizes ahead of the release of Black Ops 6. Call of Duty, w/ its various evolving modes like Multiplayer and Zombies alongside yearly releases on top of separate games like Warzone, has gotten a bit messy and, dare we say, chunky in recent yrs. File sizes for the various games can reach well above 100GB. (IGN)
• After launching photo and text stories last yr, Twitch is now introducing video stories. Streamers can now film 60-second videos in the Twitch mobile app or upload a video from their camera roll. Twitch sees the new feature as a way for streamers to take viewers with them when they’re on the go and away from their streaming set-up. While streamers typically share their short-form, behind-the-scenes content on places like Instagram Stories and maybe even TikTok, Twitch now wants them to do so on its platform. (TechCrunch)
• Krafton, the publisher behind PUBG: Battlegrounds and The Callisto Protocol, has acquired Tango Gameworks, the studio responsible for The Evil Within games and Hi-Fi Rush. Tango was shuttered by Microsoft and ZeniMax Media in May, but the talent who formed the Tokyo-based studio will be integrated into Krafton, which now owns the rights to Hi-Fi Rush. (Polygon)
• The games industry is “showing signs of a recovery” from “record-breaking layoffs, closures, and biz turmoil”. That’s according to DDM’s Games Investment Review, which reports “a sizeable uptick” in investments, recovering ground lost in 2023. Whilst mergers and acquisitions (M&A) remain “low”, both Q1 and Q2 in 2024 “each reached over $2.2bn” in deals after not a single qtr in 2023 surpassed $1.3bn. (GamesIndustry.biz)
• Ubisoft is rumored to be preparing for the launch of Nintendo’s next-gen console, which is presumably called the Nintendo Switch 2, given the homerun success of the Nintendo Switch. The latest rumors come from Nintendo leaker Nash Weedle, who took to X, formerly Twitter, to announce that Ubisoft is currently working on a port of Assassin’s Creed Shadows that is planned for the Nintendo Switch 2. (TweakTown)

Video Streaming

• Disney+ is exclusively carrying four never-before-seen episodes of The Simpsons this year, including a Christmas-themed double episode. Additionally, the 18-episode Season 35 of the veteran animated comedy, which wrapped its run on Fox in May, is set to debut on the streamer on Oct 2, Disney annc’d at D23. This Oct, Disney+ will also debut a new Halloween-themed Simpsons short. (Deadline)
• Disney+ is experiencing diminishing returns from its high-profile Star Wars live-action series. Disney’s Star Wars and Marvel franchises are currently facing various challenges. Even the latest season of “The Mandalorian” (Season 3) failed to match the demand levels of its debut season, which had a demand peak almost twice the demand peak of the final episode of Season 3. (TheWrap)
• Hearst TV laid off dozens of employees last week from its streaming svs Very Local, according to the Penske showbiz trades. The Very Local platform, which offers a blend of live news, weather and original series, has faced increasingly tougher competition from fellow streaming svs in recent yrs. Very Local, which launched in 2021, aimed to cater to local audiences and connect viewers through live news and original content from Hearst and its stations. (NextTV)
• Reliance and Walt Disney have offered to sell some channels to win faster antitrust approval for their $8.5bn India media assets merger, but are resisting changes to cricket broadcast rights they own, two sources familiar w/ the matter said. Antitrust experts have warned that the Reliance-Disney merger, annc’d in Feb., could face intense scrutiny as it will create India’s biggest entertainment player which will compete w/ Sony, Zee Entertainment, Netflix and Amazon w/ a combined 120 TV channels and two streaming svs. (CNBC)
• Revenue for Dish Network and Sling TV was collectively down a record 10% y/y, according to EchoStar’s qtrly earnings report. EchoStar posted $2.67bn in pay TV revenues, down from $2.97 bn a yr ago. Sling TV reported a gain of 78,000 subscribers during Q2. That’s due in part to 182,000 Dish subscribers, who decided from Apr. through Jun. to discontinue their service. (NextTV)