In fiscal Q2, Microsoft posted gains for its Intelligent Cloud segment, which includes Azure, showing an uptick of 8 percent — or 10 percent accounting for currency fluctuations — to $6.9 billion. Azure revenue has increased 93 percent, more than doubling from the same period a year ago. Microsoft is now firmly in second place, behind Amazon, in cloud computing. Microsoft also enjoyed a 5 percent increase in revenue from licensing Windows software to PC manufacturers and another 5 percent uptick from corporate agreements. Continue reading With Gains in Cloud Computing, Microsoft Achieves No. 2 Spot

The trade group Digital Content Next just released a report that details how some publishers of newspapers and other media outlets are pulling back on their use of Facebook’s Instant Articles program. The change comes as publishers re-examine their business models, especially vis-à-vis social media platforms. Publishers have hosted stories on Facebook, rather than their own websites, so they load more quickly on mobile phones. But these publishers also chafe against Facebook restrictions on the number and types of ads in Instant Articles. Continue reading Publishers Rethink Sharing Content on Social Media Platforms

Amazon launched its global Prime Video service, pricing it under Netflix to compete in the subscription-video arena. This year, according to Cowen & Co., Amazon is on track to spend more than $3 billion on Prime Video content, compared with $6 billion by Netflix. In addition to its Amazon Studios originals, the program line-up for its international Prime Video offering will include hundreds of movies and TV shows, varying by country. Licensed movies include “Jurassic Park,” “Pulp Fiction,” “Gone Girl” and others. Continue reading Amazon’s Global Push Creates Direct Competition with Netflix

Facebook plans to fund original productions and license original video content from media companies and digital celebrities for its platform. To be led by Facebook head of global strategy Ricky Van Veen, the new initiative is still in its nascent stages; a spokesperson only says the company is reaching out to many potential partners. Chief executive Mark Zuckerberg has steadfastly insisted Facebook is not a media company, but given this decisive move towards content, that will be a difficult position to maintain. Continue reading Facebook Pursues Funding, Licensing Original Video Content

In the carefully watched design patent battle between Apple and Samsung, the Supreme Court unanimously ruled yesterday that Samsung may not be liable for its entire $399 million in profits after copying the iPhone’s distinctive look, including its rectangular front face, rounded corners and grid of icons. In 2012, a jury decided that Samsung had infringed on Apple’s patents. “Design patents, which address what products look like, are far less common than utility patents, which cover how products work,” explains The New York Times. “The Supreme Court’s opinion, while not decisively resolving the case, found that liability in design patent cases is not necessarily an all-or-nothing proposition.” The two companies will return to court to determine an appropriate amount for damages. Continue reading Supreme Court Rules in Apple-Samsung Design Patent Case

Prime video members can access premium cable content from HBO and Cinemax now that Amazon has introduced the channels to its add-on packs in Amazon Channels, which now features more than 70 add-ons available to subscribers willing to pay more each month. “HBO is an additional $14.99 per month, and Cinemax is $9.99 monthly, with both offering 30-day free trials,” notes TechCrunch (HBO’s standalone HBO Now also runs $15/month). “The HBO add-on provides access to HBO’s current hits and past hit shows and limited series, as well as their current licensed movies, and news shows. Likewise Cinemax provides access to their original shows, as well as movies.” Continue reading Amazon Expands its A La Carte Offerings with HBO, Cinemax

According to Variety, “Barry Diller’s IAC has outlined a new strategy for Vimeo to become a major new Netflix-style subscription video-on-demand player — but without spending the kind of dough that Netflix does on original content.” Joey Levin, IAC CEO and interim chief exec of Vimeo, introduced the new strategy during IAC’s Q3 earnings announcement, noting that the company plans to experiment with proprietary subscription services. He did not discuss launch dates or pricing. “Ultimately, our goal is for Vimeo to drive millions of subscriptions and transactions for our creators while also growing a proprietary subscriber base with millions of consumers directly,” wrote Levin. Continue reading Vimeo Plans to Become Next Major Subscription VOD Player

Digital music services have a problem introducing new songs: Fans prefer music they’ve heard before, and can easily skip a song they don’t know. A radio station can promote a new song by repeatedly playing it, but up until now digital services haven’t had many tools to boost new song popularity. Now, Pandora has debuted a toolset that lets an artist introduce a new song with an audio message to fans. It worked for R&B singer Jill Scott, who was able to boost the popularity of a new song by 30 percent that way. Continue reading Pandora’s Promotional Tools Help Artists Market New Songs

Qualcomm, known for its mobile processors and wireless modems, has agreed to purchase NXP Semiconductors for $39 billion. Including debt, the acquisition is valued at $47 billion, representing the largest semiconductor deal to date. The agreement exceeds the Avago Technologies $37 billion deal to buy Broadcom Corp. In terms of pure tech deals, the agreement lands behind only Dell’s $60 billion purchase of EMC. Dutch company NXP, formerly Philips Semiconductors, is a leader in the growing automotive-chip market, and Qualcomm wants to supply its chips for autonomous vehicles. Continue reading Qualcomm Agrees to Buy NXP Semiconductors for $39 Billion

Google has signed an agreement with CBS to feature the network’s content on Unplugged, YouTube’s soon-to-be-launched Web TV service, expected to roll out early next year. While CBS is the first major network to join Unplugged, Google is reportedly close to signing deals with 21st Century Fox, Disney and NBCUniversal. The company is targeting cord cutters and consumers growing wary of traditional pay-TV subscription costs with its YouTube alternative — a skinny bundle of channels priced at $25 to $40 per month. Google will join a crowded field of OTT offerings, including Sling TV, PlayStation Vue and a planned service from Hulu. Continue reading Google Signs Deal with CBS for Planned YouTube TV Service

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

Facing stiff regulatory hurdles, Netflix has decided to shift gears regarding its plans for expansion into China. Rather than launching its own streaming subscription service as originally planned, the company will instead focus on licensing content to Chinese online service providers for now. “We still have a long-term desire to serve the Chinese people directly, and hope to launch our service in China eventually,” the company said while announcing its impressive Q3 earnings and subscriber jump. Netflix added more than 130 countries to its global presence this year, but a move into China would involve a “challenging” regulatory environment. Continue reading Netflix Adjusts China Plans, Pursues Licensing Deals for Now

With its game engine, Electronic Arts can apply code created for one game to another new game. EA has evolved its engine, now integrating the features of a dozen into a single game engine, dubbed Frostbite, which was used most recently to create the title “FIFA 17.” Now, Facebook, Amazon and other tech companies are also interested in game engines, which can handle graphics and physics as well as save time and money on R&D, and open doors to development in new media markets such as virtual reality. Continue reading Game Engines Are Now Entrée to Better Titles, Faster Delivery

Amazon plans to compete with the likes of Spotify and Apple Music when the company launches its own on-demand music service early next year. Some reports suggest the service may be called Amazon Music Unlimited, and would not come with the annual $99 Amazon Prime subscription, but would likely run a separate $10 per month. “The company will also launch its Echo-based music service, which will cost $5 a month, within the next few weeks,” reports The Verge. “That service will allow Echo owners to access Amazon’s music library on-demand just like the more expensive offering, but playback will be restricted to the smart assistant.” Continue reading Amazon to Take On Spotify and Apple with New Music Service

Google Fiber, an Alphabet company, just asked the Federal Communications Commission for permission to expand its current service using the 70/80 Ghz band to connect apartments to high-speed Internet. The technology, which Google Fiber acquired by purchasing San Francisco broadband company Webpass, beams Internet signals to the roofs of apartment buildings, from there connecting individual apartments via cable. Now, Google Fiber wants to roll out this service on a much larger scale. Continue reading Google Aims to Deploy Both Wireless and Fiber with Webpass