May 25 2023 - Layoffs, Gaming & AI

👋Happy Thursday friends. Layoffs continue on, Sony had their showcase and the economy is still as uncertain as ever. All this and more below –

Quick Take

• Meta layoffs hit, as Disney layoffs continue to roll out
• Fed minutes show uncertainty on the rate hike, summer/fall forecast isn't great

Meta has initiated its third round of layoffs as part of its cost-saving efforts. The latest cuts target employees in Meta's business groups, following a previous round of layoffs in April that affected technical roles. Between the April and May cuts, a total of around 10,000 workers will lose their jobs, adding to the 11,000 employees affected in the first round of layoffs in November. Despite the cost cuts, Meta's shares have seen a significant rise, gaining 180% since November.

Federal Reserve governor Christopher Waller stated that the decision on whether to raise interest rates or keep them steady at the June meeting is a close call. He believes that raising rates later this year will likely be necessary to address inflation. He emphasized that the choice will depend on upcoming data on economic and lending activity. Waller also expressed concern about the lack of progress in inflation and the potential impact of rising bank funding costs. He suggested that caution might be warranted in the face of uncertainty and proposed skipping a rate hike in June but considering one in July based on incoming inflation data.

Apple has launched a new campaign to raise awareness about the importance of health data privacy. The ad highlights the privacy features of Apple's Health app, which allows users to store and share their medical data while ensuring it remains end-to-end encrypted. Apple's vice president of Health, Sumbul Desai, explained that the campaign aims to educate people about the privacy they should expect regarding their health information. Apple has also published a white paper outlining the steps it takes to protect users' health data, including on-device processing and user control over data sharing with third-party apps.

• Grimes, the producer and pop singer has open-sourced her voice using AI tools. She invited anyone to make AI-generated songs using her voice, offering to split 50% royalties with the creators. Her team developed software called GrimesAI-1, which has been used to transform vocals in over 15,000 tracks and produce more than 300 complete songs. Grimes discussed her project and reviewed five tracks created with the GrimesAI software, expressing excitement and reflecting on the boundaries of art and the role of AI.

• Netflix has announced its crackdown on password sharing in the US, revealing the details of its new policy. Under the new rules, subscribers on the Standard plan can add one extra member outside their household for an additional $7.99 per month, while subscribers on the Premium plan can add up to two extra members for the same cost. The Basic and Standard plans without ads do not have the option to add extra members.
• Meow Wolf's new show, "The Real Unreal," is set to open at the Grapevine Hills Mall near Dallas. Advertising agency Preacher worked on the project and aimed to capture the unique and psychedelic experience that Meow Wolf is known for while embracing the unconventional setting of a mall. They incorporated elements like mall walking, photo studios, and strange creatures inside cars to play with the collective memory associated with malls.

• E.l.f. Beauty reported strong quarterly results that exceeded Wall Street expectations. The company's adjusted earnings per share were 42 cents, with revenue reaching $187.4 million for the fiscal fourth quarter. E.l.f.'s CEO, Tarang Amin, highlighted the company's success in becoming the number three brand nationally, surpassing CoverGirl, and the number one brand at Target. E.l.f. provided optimistic guidance for the full year, with sales expected to range from $705 million to $720 million. Amin attributes E.l.f.'s success to its low-priced cosmetic products, which have historically performed well during economic downturns. The company's engagement with Gen-Z buyers through social media platforms like TikTok and Instagram has also contributed to its growth.
• The New York Times has reached a new contract deal with the union representing its newsroom employees, bringing an end to over two years of contentious negotiations. If ratified, the agreement will provide immediate salary increases of up to 12.5% to cover the last two years and 2023, as well as raise the required minimum salary to $65,000. The deal also includes provisions for hybrid work, paid sabbatical leave, and fair minimum salaries for new newsroom jobs.
• Pentagram has collaborated with 4creative to launch a major rebranding of Channel 4. The new identity takes inspiration from the original Lambie-Nairn logo and introduces a vibrant green color and expanded font family by Neville Brody. The rebrand aims to enable Channel 4 to successfully exist across various platforms, including streaming and social media.

• Cory Shields, the VP of Global Media and Entertainment at Amazon, has stepped down from his position. Shields joined Amazon in 2020 and was responsible for publicity related to the company's original films and series. Amazon has not yet announced a replacement for Shields.
• Google's DeepMind AI language model, Flamingo, is now being used to generate descriptions for YouTube Shorts. Shorts, which are short videos created quickly, often lack descriptions and titles, making them harder to discover through search. Flamingo analyzes the initial frames of a video to generate text descriptions that explain what's happening. These descriptions will be stored as metadata to categorize videos and improve search results. The generated descriptions are not user-facing but help Google's systems better understand the videos for accurate matching when users search for them.
• Kroger is partnering with Cooler Screens to bring digital smart screens to 500 of its stores in the US. The screens will replace traditional refrigerator and freezer doors and provide shoppers with information about products, including details related to diets, health needs, and budgets. The screens will also display contextual ads. This collaboration follows a successful three-year pilot program with Cooler Screens to enhance the in-store shopping experience with interactive media and digital merchandising. Cooler Screens' advertising platform reaches over 90 million monthly viewers across multiple retailers and is projected to reach over 200 million viewers in early 2024.

• Sony has announced its first pair of wireless earbuds for PlayStation gaming. These Bluetooth-enabled earbuds can be used with PlayStation 5, PC, and Sony's upcoming Project Q handheld device. The earbuds will feature new wireless technology developed by Sony Interactive Entertainment (SIE) to deliver lossless audio and low latency.
• According to a report, Apple is developing a new feature for iOS 17 that will turn the iPhone's lock screen into a smart display. This feature will show widgets with information such as weather, calendar appointments, and notifications when the phone is locked and tilted horizontally. It expands on the lock screen widgets introduced in iOS 16. Similar to Google's "At a Glance" widget for locked Pixel phones, Apple's smart display-like lock screen will provide convenient access to notifications and appointments when the iPhone is placed on a desk or nightstand. The report also mentions that Apple is working to bring this feature to the iPad and is developing a magnetic mount for the device. Apple is expected to unveil iOS 17 and this new feature at its Worldwide Developers Conference next month.

• YouTube Music is testing a new feature called "samples" that brings short-form videos to the music streaming app. Similar to YouTube Shorts, this feature will allow users to scroll through short videos while using the music streaming app. The samples feature might display music videos in under 60 seconds and will have a separate icon within the app. It is currently in the testing phase and is expected to roll out to users through an app update in the coming weeks.
• Sony's recent PlayStation Showcase revealed updates and announcements for PS5 and PSVR 2 games. They unveiled surprise hardware accessories, including the Project Q Remote Play handheld, which can stream games from the PS5, and new PlayStation earbuds. The gaming highlights included previews of Spider-Man 2 with Peter Parker in his symbiote suit, a Metal Gear Solid 3 remake, a new trailer for Final Fantasy XVI, and Bungie's revival of the pre-Halo title, Marathon.

• Screenvision, a cinema ad seller, has partnered with TikTok to reach Gen Z and millennial audiences. They will introduce a new segment called "TikTok on the Big Screen" during their pre-movie show, featuring branded content from TikTok. Screenvision aims to connect brands that already advertise on TikTok with young consumers. Additionally, Screenvision has partnered with Kevin Hart's production studio, Hartbeat, to bring brands closer to diverse audiences. Hartbeat will represent Screenvision in sales targeted at diverse audiences and offer creative capabilities. They will launch Black and Hispanic ad networks, selling inventory across a national network of screens. Advertisers can invest in Hartbeat to produce creative for the target audience, and bespoke partnerships can run on Hartbeat's owned connected TV channels.
• Professional League of Legends players in the League Championship Series (LCS) are considering a walkout in protest of changes made by the game's publisher, Riot, to the esport's minor leagues. Riot recently announced that LCS teams will no longer be required to field a team in an official feeder league, which has led to concerns about the future of the minor leagues and the loss of jobs for players, coaches, and managers. The LCS Players Association (LCSPA) is calling for a walkout vote, and if it proceeds, it would be one of the first major instances of collective action in high-level esports. The players' demands include a promotion and relegation format between the LCS and minor leagues and a revenue pool commitment for player salaries in the feeder league. The outcome of the vote could have significant implications for the professional esports ecosystem.

• Why are all the streaming services blue now?
• Spotify is reportedly exploring the use of AI to read ads in podcasts
• Club Med Reveals Refreshed Brand Identity
• Netflix Appoints Arnold Schwarzenegger As Its ‘Chief Action Officer’
• New telescope images of the sun are spectacular
• Dyson's Redesigned Robovac Will Finally Clean Every Inch of Your Room
• Amazon launches its biggest tablet, the $230 Fire Max 11
• Copywriters on Writing Dialogue that Connects
• How McDonald's and other restaurant brands are driving loyalty apps in face of inflation
• Why Tipping Prompts Are Suddenly Everywhere
• The 30-year mortgage rate is back above 7% for the first time since March
• IBM Think Kicks Off a New Chapter
• A fake climate change theory is going viral on TikTok after Joe Rogan talked about it
• Generative AI Podcasts Are Here. Prepare to Be Bored
• Verizon warns customer service employees of impending layoffs

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