June 8 2023 - Media, Streamers & Creators

👋Happy Thursday all. Well, things are back to normal and I like it. We've got a smattering of news across the board, so let's get into it –

Quick Take

• Media disruptions continue on with BuzzFeed, LA Times and WBD
• Twitch continues to piss off streamers/creators
• Netflix dropping more games, while I'm bullish on their social gaming strategy, I hope to see them up the marketing/content

BuzzFeed is considering selling Complex Networks, due to a decline in Complex's revenues over the past few years. BuzzFeed has been facing challenges and has had to lay off employees and close down BuzzFeed News. The possible sale of Complex Networks follows these developments and would allow BuzzFeed to pursue other investment opportunities. The CEO of BuzzFeed, Jonah Peretti, previously championed consolidation within digital media but has now shown willingness to consider selling Complex. Complex's revenue in 2022 was $86.4 million, down from $125 million in 2020. BuzzFeed's overall revenues fell 27% in the first quarter of this year, and its stock price has fallen significantly, putting it at risk of a Nasdaq delisting. Despite the challenges, Peretti has indicated that he is not looking to sell BuzzFeed, and interest in digital media mergers and acquisitions is currently low.

Chris Licht is stepping down as the chairman and CEO of CNN Worldwide after a tumultuous tenure. His departure follows a controversial profile in The Atlantic and staff discontent over the handling of a recent town hall with former President Donald Trump. Warner Bros. Discovery CEO David Zaslav announced Licht's departure and stated that a search for a new CEO is underway. Licht's time at CNN was marked by the shutdown of CNN+, layoffs, falling ratings, and concerns over the network's direction. Warner Bros. Discovery faces challenges such as cutbacks, a soft ad market, and declining revenue.

The UK Prime Minister, Rishi Sunak, will announce that Britain will host the first global summit on the regulation of artificial intelligence this autumn. The summit aims to discuss internationally coordinated regulation to mitigate risks associated with AI. The meeting will bring together political and industry leaders from like-minded countries, but China is expected to be excluded. The AI summit is a British initiative that will coincide with the G7's "Hiroshima AI framework" and other talks on AI regulation held by the EU and the US. Sunak emphasized the UK's expertise in AI and its ability to lead the conversation.

Twitch's new rules on advertising practices have infuriated streamers, charities, and brands, who are warning that the changes will disrupt traditional means of earning money through consistent sponsorship deals. The new rules affect "burned in" ads and prohibit pre-recorded advertisements, audio ads, and third-party video display ads after July 1st. While Twitch's announcement primarily focused on third-party advertising, static display ads on their platform are also being targeted. Twitch, which generated approximately $2.8 billion in revenue last year, has faced previous controversies regarding revenue sharing and disciplinary actions against streamers.

Amazon Prime Video is reportedly planning to launch an ad-supported tier, according to sources cited by The Wall Street Journal. Discussions are still in the early stages, but Amazon is said to be weighing several options, such as showing more ads to existing Prime subscribers and then offering an “option to pay more for an ad-free alternative and other features.” Amazon is also said to be in talks with other streaming providers to offer ad-supported versions of their channels through Prime Video Channels.

• FCB New York has won the global creative agency of record account for Intuit Quickbooks, tasked with creating a global campaign that launches in August, as well as developing a new strategy and platform. FCB beat off TBWA and incumbent Wieden+Kennedy London to win the account, and will be working with colleagues in Canada and Australia on the campaigns. QuickBooks spent $175m on global advertising last year, with $52m of that allocated to digital.
• Twitter's U.S. ad sales fell by 59% from April 1 to early May from the same period the previous year, just before Linda Yaccarino took over as the platform's new CEO on June 5. The research firm Insider Intelligence estimates that Twitter’s 2023 global ad revenue will be almost 28% lower than last year, falling from just over $4bn to under $3bn overall, and critics say Yaccarino may inherit a "glass cliff" rather than the leadership of a resurgent platform.
• Amazon Pay has added Affirm as its first buy now, pay later option for its merchants in the US. With the integration of Affirm’s technology, Amazon Pay merchants can provide their customers with payment flexibility, such as bi-weekly and monthly payment options, starting from 0% APR for purchases over $50. Retailers offering Amazon Pay with Affirm may also tap into a new shopper network, as 16 million shoppers "actively use Affirm."

• Apple has introduced the Game Porting Toolkit at its Worldwide Developers Conference, which aims to make it easier and quicker for developers to bring their PC games to Mac. The toolkit allows developers to launch an unmodified version of a Windows game on a Mac and understand the performance potential of their game when running on a Mac before they fully port it.
• Salesforce has launched two new generative AI products, Marketing GPT and Commerce GPT, to power its Marketing Cloud and Commerce Cloud services, respectively. These new AI products will enable businesses to deliver personalized shopping experiences and campaigns at scale and simplify workflows by removing repetitive tasks.
• The Los Angeles Times announced that it is cutting over 10% of newsroom jobs, which amounts to 74 roles. The paper's executive editor, Kevin Merida, stated that the restructuring was due to the same economic hurdles that are affecting news media across the United States.
• Netflix has announced the release of five new games on its gaming platform this summer, including a chess-based adventure game inspired by the popular TV series The Queen's Gambit. The Queen's Gambit Chess will be released on July 25th, along with Oxenfree II: Lost Signals, while the other games, Cut the Rope Daily, Lego Legacy: Heroes Unboxed, and Paper Trail, will be released at later dates. Netflix plans to release up to 40 games this year.

• Global digital agency DEPT® has expanded its end-to-end commerce and marketing services by working with Salesforce to build a generative AI ecosystem. This offering includes new accelerators, large language and data models, and integrations to help brands implement Salesforce's latest generative AI product offerings. DEPT® has been a partner of Salesforce since 2016 and has recently become the first certified Salesforce Full Stack Commerce partner.
• Global fashion brands and retailers are increasingly expanding their presence in the US, attracted by the country's strong economic prospects and growing consumer receptiveness to new brands. Brands like Primark, Mango, Zara, Uniqlo, Lego, and IKEA are expanding their store footprint in the US, driven by increased demand and positive growth opportunities. These brands had previously focused on emerging economies like China and Russia but faced challenges in those markets due to political tensions and local competition. The rise of social media has also allowed brands to market themselves to US consumers without a large physical presence.
• US Senators, Marsha Blackburn and Richard Blumenthal, sent a letter to the CEO of TikTok accusing the company of providing misleading information to Congress regarding how it handles American user data. The letter focused on how data is stored in China and how employees in China could potentially access sensitive information, after recent reports from The New York Times and Forbes raised questions about statements made during congressional testimony in March.
• Universal Pictures' strategy of releasing movies for digital rental or purchase at a higher price after as little as 17 days has paid off, generating more than $1 billion in revenue in three years, with little decrease in box-office sales and even sometimes increasing ticket sales. This service, called premium video on demand, was initially met with worry from filmmakers and theater owners, but Universal's willingness to experiment has proved successful, and even resulted in being an additive revenue source to traditional V.O.D. Universal plans to release 26 movies in theaters this year.

• OpenAI CEO Sam Altman is making his mark in Washington, meeting with over 100 U.S. lawmakers to set the agenda for AI
• Tech entrepreneurs are returning to San Francisco due to the AI boom
• Lionel Messi says he will join Major League Soccer’s Inter Miami
• Uber introduces Journey Ads in India to assist brands in reaching audiences during their rides
• Wildfire smoke from Canada is causing air travel disruptions in and out of NYC
• Saint Laurent gives a modern twist to Girard-Perregaux's iconic Casquette watch with a titanium finish.
• Check out the latest commercials from AMEX, Pepsi, Heinz and others

AKQA just killing it with these Volvo campaigns

As always, send us feedback at: thebrandtrackers@gmail.com