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Snapchat Introduces More Flexible Stories Feature (May 23, 2017)
Apple and Nokia Settle Patent Litigation (May 23, 2017)
Twitter Hires Former Bloomberg Exec to Lead Live Video (May 22, 2017)
Apple Launches Website for Android Switchers (May 22, 2017)
A little under two years ago, Apple launched its first Android app, “Move to iOS”, which was designed to help Android users make the switch to an iPhone. Now, Apple has a new section of its website up which is designed explicitly to help (and help convince) Android users switch to the iPhone. Given that almost every buyer of an iPhone in mature markets is going to be an existing smartphone owner, the two key drivers of iPhone sales in those markets are switching from Android and upgrading from earlier iPhones, and both have been a consistent theme on recent Apple earnings calls. So targeting that audience of Android switchers specifically makes perfect sense. The site focuses on a few aspects of buying and owning an iPhone: ease of use, ease of switching, camera quality, speed, privacy and security, iMessage extensions, support from Apple people, and environmental responsibility. Out of all the possible things Apple could emphasize, that’s an interesting list – design, for example, isn’t one of them, though the word appears in other contexts three times on the site, and all the things highlighted here are functional rather than aesthetic. In fact, other than one oblique shot of an iPhone at the top, there isn’t a single full shot of an iPhone or any shot with the screen on until you get to the “buy” section at the bottom. Given how central the design message and product shots have traditionally been to Apple promotional material, that’s an interesting departure and likely reflects research on why people switch from Android. It’s also worth checking out a set of five short videos Apple has made to go along with the site.
Dish Allows Alexa Voice Control of Set Top Boxes (May 22, 2017)
Facebook Moderation Guidelines Leak (May 22, 2017)
Facebook is Pushing Back Launch of Original Video Content (May 22, 2017)
It might seem odd at first glance that I’m covering an auto industry leadership change, but it’s news that’s very much in keeping with the “Tech Disrupts Transportation” narrative here on the site, and the nature of both the troubles that prompted the move and the move itself are reflective of that trend too. Mark Fields, who has been CEO for the last three years, is being replaced by Jim Hackett, who has been running Ford Smart Mobility. Although this New York Times piece and others this morning are focusing on the fact that FSM and therefore Hackett has owned Ford’s autonomous driving initiatives, that’s only part of its remit, and that’s worth noting. It also owns in-car connectivity, mobility itself (which is the industry term for ride sharing and other new ownership and other business models for cars), and data and analytics, among other things. In other words, with the exception of electrification, it has owned essentially all of what’s next in the automotive industry. That Fields would have put all that in a separate division is perhaps the biggest sign that he underestimated how central these changes would be to the future of the company, and it also makes sense to put the guy who’s been running all that in charge of the company at this point. Hackett will need to bring these initiatives to the forefront of what Ford does, along with electrification, where it’s moved more slowly than other car companies, if he’s to help turn Ford around. But he’s taking over at a really tough time in both the company’s history and the US automotive industry.
Uber’s Relationship with Pittsburgh Worsens (May 22, 2017)
Weekly Narrative Video – Streaming is Saving Music (May 19, 2017)
This week’s Narrative Video is on the Streaming is Saving Music narrative. This narrative was in the news several times this week, with Spotify’s 2016 financials leaking, news that SiriusXM is debating a bid for Pandora, and Rhapsody’s announcement that it’s making layoffs and replacing its CEO. The reality is that streaming music is doing wonders for the music labels, but the streaming services themselves continue to struggle. And it’s worth noting that it’s paid subscription streaming specifically that’s really giving the industry a boost. The video talks through these topics and other trends in the industry, reality-checking the prevailing narrative. Subscribers can see the video on the Streaming is Saving Music page. If you’re not yet a subscriber, you can sign up for a 30-day free trial here, and you’ll get access to this video, past videos, all the latest commentary on the site, and lots more besides.
Images Leak of New Microsoft Surface Pro (May 19, 2017)
92% of US iPhone Users Plan to Buy Another (May 19, 2017)
We’ve seen some of these stats before, and they bounce around a little from survey to survey, but it’s always good as a reminder of just what makes the iPhone installed base so valuable: the combination of very high loyalty to the platform and the ability to sell a variety of other devices and services to iPhone users. This Morgan Stanley survey released this week says that 92% of current iPhone owners plan to stick with the iPhone when they buy their next smartphone, among the highest levels MS has seen, while Samsung comes second at 77% and other Android vendors score considerably lower. That means that even if smartphone upgrade cycles are lengthening, nearly all of the 100 million or so US iPhone users will eventually buy another, many of them likely this fall with what’s expected to be a big upgrade. With iPhones roughly two thirds of Apple revenue, that’s already tremendously important to its future prospects, but the other key part of this is that those iPhone buyers are likely to buy apps and content from the App and iTunes stores, subscribe to Apple Music, iCloud storage, and so on, and also buy other Apple devices like Watches, iPads and Macs. One of the challenges Apple faces, conversely, is that this loyalty rate isn’t as high in every country, with China one notable exception. Though I’ve only seen one survey referenced on this topic, and I’n not convinced the absolute numbers are right, it certainly seems to be the case that iPhone loyalty has been lower in China recently, with at least some iPhone owners shifting down to a cheaper Android phone from rising stars Oppo and Vivo. If Apple can turn that trend around with this fall’s phones, of course, that could lead to a massive rebound in growth in China.
I’ve been watching the news from the recent TV upfronts and waiting for the definitive article that summarizes what’s been said and done, and while I’m not convinced this is it, it does a good job of characterizing the basic trends at issue. The two big underlying trends are the continuing decline of live linear viewing of traditional TV and the massive growth of online advertising, which could be presumed to have put an enormous dent in TV ad spending but actually haven’t. However, the TV companies still see online advertising platforms as a big threat, and spent an unusual amount of time during the upfronts trashing Facebook and Google (though mostly not by name) while talking up their own massive reach. At the same time, though, these companies are increasingly mimicking the very same things that make Facebook and Google’s ad platforms attractive: detailed targeting of ads and tracking of what happens after viewers see them. At the same time, the TV networks seem somewhat lost on the content side, rebooting old shows and formats, latching onto new gimmicks like live musicals, and generally showing a lack of imagination in protecting and rejuvenating their brands. Meanwhile, the strongest audiences on traditional TV are live sports fans and older generations watching procedural franchises like CSI and NCIS. And of course the big online platforms are investing in lots of both traditional sports content and some new formats of their own. Therefore, though each side would like to paint itself as providing unique value, the two are increasing converging on a similar set of content and ad capabilities, while the audience continues to shift from traditional linear TV to a host of online and streaming alternatives, which will inevitably pull ad dollars that way too.
via LA Times
Twitter already has a deal with Major League Baseball to stream some games, and now it appears Facebook has a similar arrangement. The latter will broadcast 20 Friday-night games throughout the season. Given other recent deals for major sports, including Twitter’s last year for Thursday night NFL games, that might sound like a lot, but of course there are 30 teams in the MLB, each of which plays 162 regular season games, which means that including the postseason there are nearly 2500 games in total each year, so Facebook will air less than 1% of the total. And I’m guessing Friday night games have among the lowest viewership of any games, so this feels like a low-risk proposition for MLB and an experiment at best for Facebook. For viewers, too, the chances that Facebook will be showing the one game your team is playing in any given Friday night will be slim. But this feels like a good step for Facebook as it both scales up its live broadcast offerings and feels out what the audiences will be like for sports on Facebook.