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

Microsoft has come up with a new camera rig that allows HoloLens mixed reality app makers to capture video from a HoloLens and make it easier to show a person interacting with that app, something Microsoft dubs “spectator view.” The details of the hardware-software combo were published as open source on the HoloLens’ GitHub page. The HoloLens headset is wireless, which lets the user move around the room freely, and is based on four cameras, lightly tinted lenses and a holographic processing unit. Continue reading Microsoft Camera Rig Gives HoloLens Developers Video Hack

Facebook is answering criticism from advertisers to provide more precise data about the reach of digital ads. The social network agreed to an audit of the audience measurements and other information that it provides to advertisers. Marketers pay based on the number of times an ad is viewed, but media companies count views differently based on whether the sound was on or if the viewer watched the entire ad. Advertisers are calling for ad platforms to increase transparency. Facebook will allow the Media Rating Council to conduct an audit of the data that the company reports to its advertisers. Continue reading Facebook Will Submit to Audit to Offer Ad Data Transparency

Facebook is doubling down on inking agreements with music industry publishers, labels and trade associations, with the goal of accessing user-generated videos that include songs and, ultimately, the labels’ own professionally produced videos. Facebook’s main rival is Google’s YouTube. From the music industry point of view, a deal with Facebook could bring substantial revenues from its 2 billion users and growing advertising division, as well as create a bargaining chip in negotiations with YouTube. Continue reading Facebook Negotiates with Music Industry Over Video Content

President Donald Trump’s frequent use of Twitter has increased that platform’s visibility. That is potentially drawing in new “passive, non-tweeting” users, which may, in turn, result in more much-needed advertising revenue. But even as usage increases, the company still struggles to burnish its financial profile. To improve its fortunes, Twitter says it plans to tweak its advertising strategies, focus more on video and expand its data licensing business, by which companies pay to mine billions of daily tweets. Continue reading Twitter Reveals Plans to Attract More Users, Draw Ad Revenue

According to Cisco’s latest Mobile Visual Networking Index forecast, live video streaming via mobile devices is expected to grow by 39 times over the next five years (good news for Facebook, Twitter and others currently investing in live video). The study indicates that global live video streaming on mobile represented 52 petabytes of data last year, a figure projected to reach 2.02 exabytes by 2021. Interestingly, that will still only represent about 5 percent of all mobile traffic. “Cisco also predicted that mobile data traffic will grow to represent 20 percent of all Internet traffic in 2021, up from just 8 percent in 2016,” reports Variety. “By 2021, there will be 12 billion mobile devices in use, compared to 8 billion last year.” Continue reading Cisco Study: Live Video via Mobile to Experience Major Growth

Yesterday we reported that Venice-based Snap Inc. — owner of the Snapchat app — had signed a 5-year deal for Google Cloud services valued at $2 billion. A revised version of its S-1 IPO filing, made public this morning, indicates that Snap is also planning to spend up to $1 billion on cloud support from Amazon Web Services. The deal was originally signed in 2016 and amended this week. According to Snap, it provides “redundant infrastructure support of our business operations,” and may lead the company toward investing in its “own infrastructure to better serve our customers.” Continue reading Snap to Spend $1B on Amazon Cloud Services Over 5 Years

Google’s YouTube has debuted live video recording from its mobile app for creators with at least 10,000 subscribers. Super Chat, which lets viewers pay to move their comments up in the stream, is also now out of beta. These moves will impact creators in 20 countries, and viewers in 40 countries. Six months ago, Google first offered live recording to a handful of users, including Unbox Therapy founder Lewis Hilsenteger and athlete Ben Brown. Product managers Barbara Macdonald and Kurt Wilms say the feature will have a wider rollout later. Continue reading YouTube Aims to Be Mobile Platform for Live Video Streaming

Since Jimmy Iovine came to Apple in 2014 to revivify Apple Music, the company spent $3 billion to buy Iovine and Dr. Dre’s streaming and headphones company, and doubled its subscriber base from 10 million to 20 million users by 2016. Each user pays a base fee of $10/month. The leap upward is impressive, but the total number of subscribers is still much less than the subscriber bases at Spotify, YouTube and Pandora, all of which offer free, ad-supported versions of their streaming services. Continue reading How Apple Music Differentiates Itself in a Competitive Market

During a conference call yesterday with analysts detailing HBO’s strong 2016 earnings, Time Warner CEO Jeff Bewkes announced that the cable network’s standalone streaming service HBO Now, which launched in April 2015, has officially surpassed the 2 million domestic subscriber mark. “Wall Street has been keenly attuned to the pace of subscriber growth for HBO Now as a bellwether of how major media giants will evolve their businesses in the digital era,” reports Variety. The service is vital to Time Warner since “HBO is in the midst of carriage renewal deals with major MVPDs, including the two largest cable operators, Comcast and Charter Communications.” Time Warner is also looking to merge with AT&T, parent of DirecTV. Continue reading HBO Now Service Has More Than 2 Million Subscribers in U.S.

Snap has inked a deal for Google Cloud services worth $400 million annually over the next five years, for a total of $2 billion. The deal is a continuation of a partnership that dates back to 2013. Analysts say the $400 million will give Google a “hefty annual bump.” Google doesn’t report numbers specific to its cloud business, but rolls it into all non-advertising revenue. In Q4 2016, Google’s non-advertising sector earned $3.4 billion in sales. The partnership could presage future alliances or mutually beneficial projects. Continue reading Snap Inc. Signs $2B Deal for Google Cloud Services Until 2022

In its IPO filing, Snap Inc. revealed that an average of 158 million people use the Snapchat app — sending more than 2.5 billion messages and images — every day. The company’s annual revenue grew from $58.7 million in 2015 to $404.5 million last year. Nearly all its revenue comes from advertising, especially on mobile. Expected to seek a market valuation of $20 billion, Snap may receive $4 billion, which, according to Standard & Poor’s Global Market Intelligence would make the company one of the biggest tech offerings ever in the U.S. Continue reading Snap Inc. Files for IPO, Describes Itself as a Camera Company

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

Facebook’s Lumos computer vision platform, which was originally created to help visually impaired members of the social network’s community, is now being used for a more sophisticated image search. It allows users to find images on Facebook via key words that describe content, rather than a search that is limited to tags and captions. “Facebook trained an ever-fashionable deep neural network on tens of millions of photos,” explains TechCrunch. “The model essentially matches search descriptors to features pulled from photos” and “ranks its output using information from both the images and the original search.” Facebook may apply the tech to videos in the future and potentially raise the bar on its targeted ad offerings. Continue reading Artificial Intelligence Now Powers Photo Searches on Facebook

In its Q4 earnings report, Facebook revealed that sales rose 51 percent to $8.81 billion, above the $8.51 billion average analyst prediction. The bump in revenue is largely attributed to advertising on mobile phones. Also, within the space of a year, monthly active Facebook users increased 17 percent to 1.86 billion people, with 1.23 billion checking daily and 1.74 billion accessing the social network via their smartphones. Facebook has now cemented its No. 2 position in the mobile advertising market behind Google. The company is also making a major move into video content. Continue reading Facebook Eyes Success with Mobile Ads and Focus on Video