Nintendo enjoyed a significant jump in profit with strong sales of its Switch console, unveiled on March 3, and affiliated software. The company, based in Kyoto, reports it sold 7.24 million Switch units in Q4 2017, bringing total sales since its debut to 14.86 million. One reason for the leap was that Nintendo ensured that stores had plenty of Switch consoles to sell over the holiday shopping season, following shortages during the summer. But, says the company, demand still outstrips supply. Continue reading Nintendo’s Profits Jump With Strong Sales of Switch Consoles

Vivendi’s Universal Music Group, the world’s largest record company, has licensed its music catalog to Facebook. The deal, which focuses on the music in user-generated videos, covers songs that will be used in the background on videos and so-called social experiences on Facebook, Instagram, Messenger and Oculus. For Facebook, the deal is aimed at encouraging users to post more videos, key to the company’s current video-centric strategy. A day before this deal was struck, Universal also reached an agreement with YouTube. Continue reading Facebook, Universal Music Ink Licensing Deal for User Videos

According to Morgan Stanley, as of March 2017 the net value of Netflix content was valued at $11 billion, significantly higher than the content assets of many top media companies. “At the same time, however, the revenue Netflix generates on that base of content trails traditional TV and film conglomerates,” reports Variety. “Netflix pulls in about $1 of revenue per dollar of net content value, versus $2-$4 among old-school entertainment companies.” There is no guarantee that Netflix, which just earned 92 Emmy nominations, can monetize its content similarly to traditional television networks, especially since it does not sell advertising. Regardless, Morgan Stanley analysts wrote “Netflix is building a much larger profit pool than the market understands.” Continue reading Morgan Stanley Values Netflix Content Assets at $11 Billion

The focus for Google at its annual I/O developer conference was artificial intelligence. Google Assistant will now be available for the Apple iPhone, a way to introduce millions more people to Google’s AI capabilities. Google also revealed more about its software development kit for Google Assistant, saying it will be better integrated into TVs, let the user type requests and questions, and add skills such as payments and receipts. Third party developers plan to integrate Assistant into numerous products. Continue reading Google Makes Bid to Expand Revenue Sources Beyond Search

Apple became the first U.S. company to cross the $800 billion barrier in market capitalization when it reached $802.72 billion yesterday (on Monday it reached $801.37 billion but dropped below $800 billion by the close). The company reached $600 billion in 2012 and $700 billion in 2015. “Google parent Alphabet Inc. is currently in second place at $658.60 billion, according to FactSet,” reports MarketWatch. “Microsoft Corp. is third, nearly $270 billion behind Apple at $533.02 billion.” Amazon.com is presently holding at $455.42 billion. Investors are optimistic about Apple’s plans to launch three new iPhones later this year to celebrate the product’s 10-year anniversary. Continue reading Milestone: Apple Is First Company to Top $800 Billion Value

According to inside sources, AMC Networks plans to target millennials with its own ad-free, online streaming service. However, distinguishing itself from today’s collection of standalone options, AMC’s offering will reportedly be made available exclusively for cable subscribers, a move meant to support the pay TV industry as it faces a growing number of cord cutters. “AMC is discussing featuring digital-only spinoff shows of its existing programs like ‘The Walking Dead’ and is considering pricing between $4.99 to $6.99 a month,” reports Reuters. “Packaging the service as an add-on to existing cable bills allows AMC to curry favor with cable and satellite companies.” Continue reading AMC Planning a New Streaming Service for Cable Subscribers

Pinterest, now in its third full year earning selling ads, is targeting more than $500 million in revenue this year. The company earned $100 million in revenue in 2015 and $300 million last year. Some close to Pinterest say the company is gearing up for an eventual IPO. “The company hired its first CFO, Todd Morgenfeld, from Twitter back in October, and has Facebook’s former monetization director, Tim Kendall, overseeing all of Pinterest’s revenue efforts, among other things,” reports Recode. Those close to the company suggest that if Snap “can fetch a valuation north of $20 billion on the public markets, Pinterest is in good shape to do something similar.” Continue reading Pinterest, Targeting $500 in Revenue, Could Be Prepping IPO

In response to strong initial demand, Nintendo plans to at least double production of its new Switch game console through March 2018. The hybrid console, designed for home and mobile use, launched globally March 3, and “its North American unit described the initial momentum as the strongest in the company’s history,” reports The Wall Street Journal. This could put Switch on a similar trajectory as the company’s popular Wii system (and Nintendo needs a hit after its Wii U performed less than expected). “In the fiscal year starting April 2017, assemblers under contract with Nintendo are now planning to manufacture 16 million or more Switches, up from an initial plan for eight million.” Continue reading Nintendo to Double Planned Production of New Hybrid Console

IHS Markit reports that Sony led the gaming hardware, software and service market last year, nearly doubling the share of Microsoft and its Xbox One. Sony is expected to continue its dominance through 2017. According to IHS, Sony captured 57 percent ($19.7 billion) of spending by gamers in 2016, “thanks to growth of digital console games,” notes VentureBeat, adding, however, “that the overall console game market shrank in 2016, and Nintendo is newly competitive this year with the launch of the Switch game console.” Additionally, Microsoft may experience a rebound this year with the launch of its PS4 competitor, Project Scorpio. Continue reading Sony Holds Lead in Console Market, Platform Subs on the Rise

According to a new eMarketer report, Google’s share of the online search advertising market could exceed 80 percent by 2019, as it outpaces other search companies including Microsoft, Yahoo, Yelp and AOL. Last year, Google’s share of the ad market reached 75.8 percent ($24.6 billion in revenue). The company’s share is expected to reach 80 percent by 2018 and 80.2 percent the following year. The eMarketer projections include advertising on desktop and laptop PCs, mobile phones, tablets and other Internet-connected devices. Continue reading Google Share of Search Ad Market to Hit 80 Percent by 2018

Motion Picture Solutions CTO Laurence Claydon addressed issues of security during the HPA Tech Retreat, not always the most interesting issue to a crowd of film and TV technologists. Claydon’s experience comes from more than 20 years of content localization, and working in digital cinema for Technicolor, Deluxe and others. “This is based on those workflows,” he said, “but some of it is those principles can be applied to any workflow.” Advances in technology have increased the risks of piracy, even before the advent of videotape, he noted. Continue reading HPA Tech Retreat: Security Threats, Strategies for Film and TV

For the first time, Amazon is revealing earnings from its Prime membership program as well as other subscription services, in a 77-page document. Up until now, the company has been tight-lipped on such numbers, leaving investors to wonder how these important services are faring. The last time Amazon revealed numbers, in April 2015, it detailed the profitability of its Amazon Web Services, resulting in analysts and investors bumping the company’s value upwards. Since then, shares in Amazon have more than doubled. Continue reading Amazon: Prime, Other Subscription Services Earn $6.4 Billion

Amazon has typically chosen revenue growth and investments over profits, but in Q4, profit rose 55 percent to $749 million, while revenue increased 22 percent to $43.7 billion. The company has enjoyed seven consecutive profitable quarters. While brick-and-mortar sales reported disappointing sales during the holiday season, Amazon won an estimated 42 percent of total holiday online spending growth during that quarter. The company is about to invest heavily, having pledged to create 100,000 full-time jobs by mid-2018. Continue reading Enjoying Healthy Profits, Amazon Turns to Investment, Growth

This year Snap Inc. will go on a roadshow to market its expected IPO, and founder Evan Spiegel is expected to play an out-sized role, with the company’s IPO bankers and executives depicting him as a Steve Jobs-like visionary for millennial products. The goal is to portray Snap as a company that will become a media/content behemoth that can meet and exceed its hoped-for $20 billion to $25 billion IPO valuation, in a class with Apple and Facebook, rather than Twitter, which has deflated since its 2013 IPO. Continue reading Snap Preps for IPO Roadshow, Touting Spiegel as a Visionary

Dish’s Sling TV is launching a cloud DVR feature, to better compete with Sony PlayStation Vue and other companies that already offer that capability. The new feature will allow consumers to record TV shows and movies for later viewing, and is slated to go into beta in December, according to Sling. The beta test is at first only available to those accessing Sling TV through Roku devices. To sweeten the deal, Sling says its recordings will not expire after 28 days, the length of time that PlayStation Vue saves them. Continue reading Dish’s Sling TV Introduces Beta Test of a Cloud DVR Feature