June 23 2023 - Cannes, AI & Gaming

👋Happy Friday friends. We made it. Everyone is either at Cannes or Config and my FOMO is out of control. Let's get into it–

Tor Myhren, Apple's VP of Marketing Communications, spoke at Cannes Lions emphasizing the importance of advertising agencies, stating that they will always exist and should challenge their clients instead of simply agreeing with them. Myhren encouraged agencies to push further and be brutally objective in decision-making. He also criticized the use of multiple layers in the creative process, advocating for simplicity and removing unnecessary elements. Myhren predicted that more companies would bring elements of production in-house to have greater control. He highlighted Apple's shift to virtual events during the pandemic as an example. Myhren stressed the need for creativity to be embedded in company culture and advised trusting instincts rather than extensive testing. He discussed Apple's approach to advertising, considering media as art and aiming to enhance the environment rather than pollute it.

Microsoft has stated that it may abandon its $70 billion acquisition of Activision Blizzard if a federal judge grants an injunction that would delay the deal's closing. The Federal Trade Commission is seeking a preliminary injunction, arguing that the acquisition would have devastating effects on the video game industry. The hearing is seen as a test of efforts to curb the power of tech giants. The FTC claims that Microsoft could harm competition by making Activision's games exclusive to Xbox or degrading their quality on other platforms. Microsoft argues that the deal would benefit consumers by expanding access to Activision's games through low-cost options.

TikTok has announced changes in its leadership team amid concerns about its future in the United States. The company's chief operating officer, V. Pappas, is stepping down and will become a strategic adviser, while Adam Presser will take over as the head of operations. Additionally, TikTok has hired Zenia Mucha, a former Disney executive, to oversee its communications team. The leadership shake-up comes as TikTok faces scrutiny over its ownership, data practices, and privacy issues.

Vice Media has canceled a competitive auction for its assets and is now set to be acquired by its top lenders, Fortress Investment Group and Soros Fund Management. The lenders made a binding bid of $225 million to take over the company after Vice filed for bankruptcy. Despite soliciting outside bids, no offers deemed superior to the lenders' bid emerged. The acquisition still needs to be approved by a bankruptcy court, and a hearing is scheduled for Friday.

• YouTube is introducing an AI-powered dubbing feature to make it easier for creators to dub their videos in different languages. The company is incorporating the team from Aloud, an AI-powered dubbing service developed within Google's Area 120 incubator. The tool transcribes the video, allowing creators to review and edit the transcription, and then it translates and produces the dub. YouTube is currently testing the tool with a select group of creators, and Aloud currently supports English, Spanish, and Portuguese. YouTube plans to further enhance the tool in the future to make translated audio tracks sound more like the creator's voice, with improved expression and lip sync, with these features expected to be available in 2024.
• Warner Bros. Discovery, following recent announcements about organizational changes and layoffs, is reportedly planning to sell approximately half of its music catalog. This catalog includes iconic soundtracks such as Purple Rain, Casablanca, and Batman, as well as the studio's fanfare tune "As Time Goes By" from Casablanca. Currently, the catalog is under a multi-year deal with Universal Music Publishing. The company recently faced criticism and concerns over the layoffs at Turner Classic Movies, leading to an emergency meeting with influential directors Steven Spielberg, Martin Scorsese, and Paul Thomas Anderson. Additionally, Warner Bros. Discovery has signed a deal to utilize an "artificial intelligence" system to assist in the decision-making process for greenlighting films. This system can evaluate the value of stars in different territories and predict a film's expected theatrical and ancillary revenue streams.
• Activists from Clean Creatives targeted Richard Edelman and other executives from PR giant Edelman at the Cannes Lions festival over the company's work with fossil-fuel clients. One activist interrupted a panel featuring Edelman executives, emphasizing the need for everyone to be part of the change towards sustainability. Edelman has faced pressure over its work with companies like Exxon Mobil and Shell but has claimed to work with clients committed to change. Clean Creatives cited data showing minimal investment by the oil and gas industry in clean energy. Edelman stated that they have educated employees on sustainability communications and have a thorough process for evaluating new clients.

• David Droga, CEO of Accenture Song and founder of Droga5, discussed the importance of creating "lighthouse" creative work in the advertising industry rather than focusing solely on "fireworks." While fireworks can provide momentary entertainment, lighthouse work stands the test of time, adds value, and is meaningful. Droga emphasized the role of technology in enabling lighthouse-type approaches that have a lasting impact and offer value to businesses. He highlighted the potential of artificial intelligence to automate certain tasks in the industry but emphasized that creativity, critical thinking, and originality will remain essential.
• New York City has implemented rules that require companies using AI software in hiring to inform job seekers in advance and to undergo annual independent audits to identify bias in race, ethnicity, and gender. The law, set to be enforced from July 5, is expected to influence practices nationally. However, the focused approach of the regulations has drawn criticism from public interest advocates who argue that it has been watered down and from business groups that consider it impractical.
• The Emmys may be postponed to a later date, possibly January, if the ongoing Writers Guild of America strike continues deep into the summer. The Television Academy and Fox, who are broadcasting the ceremony, have declined to comment on the potential postponement.
• Adobe has previewed a new AI image generator tool called "Project Gingerbread" at the Config 2023 event. This tool allows users to adjust the angle and perspective of a text prompt-generated image with the help of 3D modeling. It offers a higher level of aesthetic control in AI image generation, enabling users to customize the appearance of objects by dragging and dropping a simple 3D shape. The release date of Gingerbread is not confirmed.

• Senate Majority Leader Chuck Schumer has outlined a framework to regulate artificial intelligence, hoping to build bipartisan support. Schumer did not endorse any specific bills but called for an approach prioritizing objectives such as security, accountability, and innovation. He plans to hold listening sessions in the fall, in which lawmakers would learn about the potential and risks of AI from industry executives, academics, civil rights activists, and other stakeholders.
• During the Xbox games showcase, Xbox chief Phil Spencer addressed concerns about the impact of artificial intelligence on video game production. He downplayed the idea that AI would lead to smaller teams and streamlined processes, stating that their focus is primarily on using AI for policy enforcement and network safety, particularly in managing conversations and traffic on Xbox Live. AI is increasingly being used for community moderation, with projects like Ubisoft and Riot's research on tackling toxicity in online game communities. Spencer emphasized his commitment to protecting the creative process and enabling game developers to leverage AI as a tool for enhancing creativity and delivering the best gaming experiences. He expressed caution regarding the use of large language model AI, like ChatGPT, for NPC dialogue generation, highlighting the importance of finding the right balance between AI and fun in video games before prioritizing efficiency.
• Twitter CEO Linda Yaccarino intervened to mend the relationship between Twitter and Google after a payment issue, according to sources. Twitter is now consistently paying Google for its cloud services, amounting to more than $20 million per month. Yaccarino participated in a video call with Google Cloud CEO Thomas Kurian to rebuild the relationship and discussions for a broader partnership are underway, including Google's ad spending on Twitter and Google's use of Twitter's API. Twitter has used Google's cloud services for various purposes and Google has advertised on Twitter's platform, although recent estimates show a significant decrease in Google's ad spending on Twitter.
• Meta will block access to news articles for users in Canada in response to a new law called the Online News Act. The law requires internet companies like Meta to negotiate payment deals with news publishers for their content. Meta has criticized the legislation and described it as flawed. Similar legislation was passed in Australia in 2021, initially prompting Meta to block news stories before later reaching agreements with publishers. The bill has been supported by members of parliament who see it as a means of providing revenue to the press and countering the dominance of Meta and Google in advertising dollars. A similar bill is being considered in California, and Meta has indicated that it would block news articles on Facebook in the state if the bill becomes law.

• Elon Musk Proposes ‘Cage Match’ With Mark Zuckerberg
• David Droga Is Always Making, Shaping, and Creating
• Figma is now free for all US school students
• YouTube TV’s multiview feature now offers non-sports content
• Tim Cook will meet with India's Prime Minister at the White House
• DGA’s Thomas Schlamme Urges Studios To “Get Off Their Asses & Get Back In The Room With The WGA”
• AWS invests $100M in generative AI initiatives.
• Game company Embracer, which owns 138 development studios, announces a restructuring that includes layoffs and studio closures.
• Google's Duet AI can generate custom templates in Sheets
• Warner Bros. Unveils New $280 Million Harry Potter Attraction
• Powell Says Interest Rates Likely to Rise Further
• Territory Studio Joins Forces with Pop-Arts Management
• Nike Builds Its Own Branded Universe Within Fortnite

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