Netflix is marshalling resources around its ad-supported Standard plan, pulling the plug on ad-free Basic in an effort to drive more eyeballs to the service’s sponsored tier. The $9.99 per month Basic plan is no longer available “for new or rejoining members” in the U.S. and UK and was dropped in Canada last month. Existing Basic subs can continue the plan until they decide to change tiers or cancel. Standard with Ads has since its November launch accrued more than 5 million subs, according to Netflix, which says 25 percent of new sign-ups have chosen that package. Continue reading Netflix Shutters Cheapest Streaming Plan Without Advertising

After significantly curbing its creator payout program, Snap Inc. has largely rejuvenated its Snapchat platform with the implementation of a revenue-sharing option that has lured back some top talent, according to reports. After a testing period that began last year, Snap in April opened to all eligible users a program that allows creators to earn a portion of revenue from ads appearing between their posts. Several thousand participants are said to have qualified for the program, in which those who achieve certain goals become eligible for “Snap Star” status. Continue reading Snap’s Ad Revenue-Sharing Draws Creators Back to Platform

After three straight quarters of declining revenue, Meta Platforms posted a 3 percent year-over-year gain in Q1, for a total of $28.6 billion. Earnings fell by 24 percent, to $5.7 billion, due in part to restructuring charges. But the bad news was offset by strong user growth, including 37 million daily active users for Facebook, up 4 percent from Q1 2022. The results beat Wall Street expectations and exceeded Meta’s own guidance. Meta CEO Mark Zuckerberg called it “a good quarter,” adding that “our AI work is driving good results across our apps and business.” Continue reading Meta Back on Growth Curve Following Three Tough Quarters

Netflix followed its triumphant Q4 with mixed results for Q1, the first quarter under new co-CEOs Ted Sarandos and Greg Peters. The period ending March 31 produced profit of $1.31 billion, down 18 percent year over year. Revenue was up 3.6 percent to $8.16 billion from $7.87 billion in Q1 2022. Paid sharing was launched in four countries in Q1, but the company delayed the broader rollout that was to come with a global crackdown on password piggy-backers, which was originally scheduled for Q1. The wider initiative, which includes the U.S., is now set for Q2. In addition, Netflix announced it would shutter its DVD rent-by-mail program. Continue reading Netflix Delays Password-Sharing Fees, Cancels DVD Rentals

SoftBank-owned Alibaba Group — with headquarters in Hangzhou, China — plans to split into six independent companies that may seek separate IPOs, the company announced as Chinese authorities appear to be winding down a regulatory clampdown on the country’s powerful technology sector. The business empire assembled around e-commerce by industrialist Jack Ma these past 20 years was at its peak valued at more than $800 billion but is now assessed at about one-fourth that amount. The company’s stock soared on the news adding about $32 billion in global value, a rising tide that also lifted competitors’ boats. Continue reading Alibaba to Split into Six New Companies with Potential IPOs

Meta Platforms CEO Mark Zuckerberg is getting a lot of love from Wall Street, which saw the company’s stock add $100 billion in value in Q1, largely on the basis of announcing layoffs. Now the 38-year-old is getting attention for a 2,200-word staff memo that has garnered high marks for candor even as he eliminates another 1o,000 jobs. “Last year was a humbling wake-up call,” Zuckerberg wrote. “The world economy changed, competitive pressures grew, and our growth slowed considerably.” Streamlining while working more strategically is the foundation of what Zuckerberg has coined a “year of efficiency.” Continue reading Zuckerberg Memo Outlines Management Based on Efficiency

Google unveiled new search features during its “Live from Paris” event via a YouTube stream. The emphasis was on multisearch, which will go live globally to mobile platforms in more than 70 languages where Google Lens is used, according to the company. Introduced last year, the multisearch feature looks through images and text, driven by an AI technology the company has developed called MUM, for Multitask Unified Model. There were no new announcements regarding Bard, Google’s new conversational AI search tool, although media outlets reported that Bard responded incorrectly in a Twitter promo the same day. Continue reading Google Touts Search Plans During Its ‘Live from Paris’ Event

Pinterest grew Q4 year-over-year revenue by 4 percent, to $877 million, while full year sales jumped 9 percent in 2022 totaling $2.8 billion. The company said that global monthly active users also grew by 4 percent in the three month period ending December 31, to a total of 450 million. CEO Bill Ready emphasized on the earnings call the intent to eventually “make every pin shoppable.” Similar to how it is monetizing still images Pinterest is focusing on making videos “more actionable” by applying what it calls “our computer vision technology.” Continue reading Pinterest Grows Its Active Users, Focuses on Video Shopping

Belt-tightening has paid off in a big way at Meta Platforms, whose stock rocketed by as much as 19 percent due to a combination of “improving conditions” and news of a $40 billion buyback plan. The company forecast Q1 revenue of as much as $28.5 billion — which is more than first quarter earnings in 2021, right before a change in Apple’s privacy rules detrimentally impacted ad-reliant social platforms. In Q4, Meta reported its third consecutive quarter of declining sales but still amassed a net profit of $4.7 billion on revenue of $32.2 billion, down 4.5 percent year-over-year. Continue reading Zuckerberg Reveals 2023 ‘Year of Efficiency’ Mantra for Meta

BuzzFeed stock jumped last week as news of collaborative efforts with Meta Platforms and OpenAI began circulating. The New York-based digital media firm famous for viral content said it is using OpenAI’s artificial intelligence to enhance lists, quizzes and other content. Meanwhile, a 2022 deal valued at close to $10 million with Meta Platforms is seeing results as BuzzFeed trains creators to expand their online presence and generate content for Meta’s social platforms, including Facebook and Instagram. BuzzFeed shares, which were trading at under $1 through January, rose to $3.87 in after-hours trading on Friday. Continue reading BuzzFeed Eyes a Future Collaborating with Meta and OpenAI

Microsoft is expanding its relationship with OpenAI, entering what it calls “the third phase of our long-term partnership” with a multiyear, multibillion dollar investment to accelerate AI breakthroughs to ensure these benefits are broadly shared with the world.” Although the companies did not disclose financial terms, Microsoft’s investment was previously reported as $10 billion. The New York Times reports OpenAI is also in talks to complete a tender offer for as much as $300 million (contingent on the number of employees selling stock), “which would value the company at around $29 billion.” Continue reading Microsoft Invests $10 Billion in OpenAI, Valued at About $29B

Meta Platforms on Wednesday began layoffs that will affect 11,000 workers — approximately 13 percent of the company’s workforce of 87,000. Founder and CEO Mark Zuckerberg told the staff via video that “I take full responsibility for this decision,” describing it as “one of the hardest calls I’ve had to make in the 18 years I’ve run the company.” This is the first time mass layoffs have been implemented there. Zuckerberg was described as “downcast” as he discussed the news, saying overly optimistic growth projections led to overstaffing. Continue reading Meta Cuts 13 Percent of Workforce, Eliminating 11,000 Jobs

Adobe announced it plans to purchase rival digital design suite Figma for $20 billion in cash and stock. The news was disclosed as part of its Q3 earnings report, which saw revenue of $4.43 billion, exceeding analysts’ expectations. Despite the healthy cashflow, Adobe says it may have to finance part of the deal, which will have to clear regulatory hurdles in a very pro-competition environment. Founded in 2011, Figma released its first product in 2015, leveraging the WebGL API to create real-time collaborative tools for web-based design teams “working together beyond company walls.” Figma lists Airbnb, Conde Nast and Github among its users. Continue reading Adobe Will Purchase Digital Design Rival Figma for $20 Billion

Twitter’s second quarter revenue of $1.18 billion underperformed 2021 by only one percent but fell short of estimates by more than 10 percent, disappointing Wall Street, which projected revenue of $1.32 billion for the period. Advertising crept up two percent, to $1.08 billion, but overall Twitter had a quarterly net loss of $270 million, largely attributed to recessionary headwinds and uncertainty about Elon Musk’s proposed takeover. In its earnings report, Twitter said its lawsuit against Musk has been granted an expedited trial for October 2022. Continue reading Ad Market and Musk Credited for Twitter’s Missed Earnings

Entertainment and eSports brand FaZe Clan completed a $725 million merger with B. Riley Principal 150 Merger Corp., a special purpose acquisition company (SPAC) and began publicly trading on the Nasdaq stock exchange Wednesday. FaZe Clan currently has around 93 creators with a combined 500 million followers across popular social platforms such as YouTube, TikTok and Twitch. In May, Forbes ranked FaZe Clan the fourth most valuable eSports company, estimating its worth at $400 million. Trading as FAZE, the stock fell nearly 25 percent in its first day of trading. Continue reading Gen Z Brand FaZe Clan Goes Public in $725M SPAC Merger