Google is Working on Subscription Tools for News Publishers (Aug 18, 2017)
CNBC reports that Apple has recently held discussions with insurance company Aetna about providing Apple Watches on a subsidized basis to at least some of its 23 million customers. Aetna already has a program to provide Apple Watches to its employees, and both Apple and Fitbit have been talking to a variety of healthcare companies about partnerships to get wider distribution of their devices. This is the first real sign that Apple might do a deal which would be much larger in scale than anything that’s been contemplated so far. For context, Apple has likely sold just over 30 million Watches in total so far, so getting Watches to even half of Aetna’s members would be a massive boost to the business. Such a deal would likely see Apple supplying Watches at less than the usual retail price, both as a bulk discount and because the cost of acquisition would be much lower than a typical retail purchase, while Aetna would subsidize the remaining cost for its members on the basis that fitness trackers tend to improve health and fitness and therefore lower the odds of a medial issue that requires insurance coverage. The rationale there would be much the same as for insurers providing discounted gym memberships. Partnerships like this with medical providers probably have more potential than anything else to boost the addressable market for fitness-centric wearables, including the Apple Watch, because they substantially lower the cost of entry for consumers while providing strong incentives to make use of the devices. There’s obviously no guarantee any of this gets done, but it’s the kind of thing I’m sure we’ll see at least on a small scale in the near future, whether with Aetna and Apple or other pairings.
Toyota, Ericsson, Intel, NTT, and other companies have formed a consortium to figure out ways to manage the massive explosion of data that will be generated by cars over the coming years. As cars become more autonomous, they will need to gather enormously more data from cameras, radar, LIDAR, and other sensors and transmit at least a subset of that data over networks to central repositories for processing and analysis. That, in turn, is going to require some big decisions about which data to process locally, what needs to be sent over the air, and how much and which data to store on an ongoing basis in both locations. Since carmakers like Toyota don’t really have much experience with that kind of thing, network infrastructure vendor Ericsson and chip vendor Intel among others are going to work together with them to figure some of this stuff out, and have left the door open for others to join their effort in future. Notably absent from this initiative are other big automotive chip vendors like Nvidia, any cloud service companies beyond Japan’s NTT, or mapping companies like HERE, and given the strong roles they’re playing or likely to play in this area, the consortium does need to add additional members (including ones who compete with the founding members) if it’s to make real headway here.
Amazon Forces Refund Changes on Angry Sellers (Aug 2, 2017)
Facebook Confirms News Subscriptions Coming in October (Jul 19, 2017)
Campbell Brown, the former news anchor Facebook appointed as head of News Partnerships in January, has finally confirmed what’s been rumored for some time now, namely that Facebook is readying a subscription product for newspapers. It sounds like it will adopt the familiar though not universal approach of allowing readers to access ten articles before having to pay for a subscription to a given publication, though it’s not clear that the ten articles will include those readers read separately in their browsers, so that will be a key point for papers to nail down before signing up. Another will be payments and how those will work, since Facebook still doesn’t have credit card details from the vast majority of its users. Since some publications don’t allow any free articles before the paywall kicks in, this won’t be a perfect or universal solution, but on paper should neutralize one of the big criticisms of Facebook’s gobbling up of news consumption. However, given that this has been in the works for some time, and the largest publications will be aware of that, the recent PR push by the News Media Alliance against both Facebook and Google suggests that it certainly won’t assuage all their concerns. Update: also today, Facebook announced analytics for Instant Articles with support from Nielsen, to allow publishers to compare results from their IA and web-based versions. The lack of comparable analytics has been another bugbear for the news organizations using IA, so this should check another box in resolving those concerns, at least on paper.