HocusFocus Newsletter 10 23 17 - Verdemartin

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A U T O M O T I V EGM/Self Driving Cars/NYGeneral Motors announced that it will become the first company to test selfdriving cars in New York City. The automotive manufacturer will deploy a fleetof self-driving Chevrolet Bolt electric cars early next year in a 5-square-milesection of lower Manhattan that engineers are currently mapping.Lyft/GoogleGoogle parent Alphabet invested 1 billion in ride-hailing service Lyft, whichexpands the company’s valuation to 11 billion.Note: In 2013, Google invested 258 million in Lyft rival Uber. The chart belowdelineates the most highly valued U.S. startups, according to Dow JonesVentureSource, as reported by The Wall Street Journal:StartupValuation (Billions)Uber 68.0Airbnb 31.0SpaceX 21.0WeWork 20.0Palantir 20.0Pinterest 12.3Lyft 11.0Dropbox 10.0Stripe 9.2Outcome Health 5.5C O N F E C T I O NFerrero/FerraraItalian confectioner Ferrero International, the fourth largest confectioner in theworld (Nutella and Tic Tacs) agreed to purchase Lemonheads and RedHotsmaker Ferrara Candy for a non-disclosed price – though speculated at 1.3billion. Rumors are circulating that it will take a run at Nestle’s U.S. candybusiness. Ranking of U.S. confectioners, according to Euromonitor Internationalas reported by The Wall Street Journal:CompanyMarket ShareCompanyMarket elez6.1%Ferrara2.3%Nestle5.2%1 of 7

D I G I T A LAd BlockingMediaPost reported that a new study by OnAudience.com indicated that U.S.publishers alone are losing nearly 16 billion of digital ad revenue a year dueto ad blocking – up from 11 billion the prior year.Note: Industry mandarins project that roughly 26% of U.S. consumers usesome sort of ad blocking software.Microsoft/JusticeDept./Supreme CourtThe Supreme Court agreed to decide whether federal prosecutors can forcetechnology companies to turn over data stored outside the U.S. The NewYork Times reported that the case, United States v. Microsoft, No. 17-2,arose from a federal drug investigation when prosecutors sought the emailsof a suspect that were stored in a Microsoft data center in Dublin. Thegovernment said they were entitled to the emails because Microsoft is basedin the U.S. A federal magistrate judge in New York in 2013 granted thegovernment’s request to issue a warrant for the data under a 1986 federallaw, the Stored Communications Act. Microsoft challenged the warrant in2014, arguing that prosecutors could not force it to hand over its customers’emails stored abroad.F I N A N C EAmex/Supreme CourtThe Supreme Court agreed to look into an appeal by 11 states that argueAmerican Express violated antitrust laws by barring merchants from askingcustomers to use other credit cards that charge lower fees. The justices saidthey would review a ruling by the federal appeals court in New York thatsided with American Express.Dow Jones/MilestoneThe Dow Jones Industrial Average powered its way past 23000 last week –surpassing its previous milestone. The Standard & Poor’s 500 index alsosurpassed its previous ceiling.MasterCard/SignaturesMasterCard customers will no longer need to sign for purchases they makewith the credit card at retail.G A M I N GVideo Software RevenueThe chart below delineates the top countries for videogame-softwarerevenue (2017 projections) according to Newzoo BV, as reported by The WallStreet Journal:CountryRevenue (Billions)China 27.5U.S. 25.1Japan 12.5Germany 4.4U.K. 4.2Week of October 23, 20172 of 7

M O V I E SFandango/MovieTickets.comNBCUnverisal owned movie ticket site Fandango is acquiring rivalMovieTickets.com. Fandango’s site provides ticketing to 33,000 screensworldwide and MovieTickets.com has deals with theaters representing over29,000 screens. The combined entity will provide movie trailers, original videocontent and home entertainment.Note: Last year, Fandango acquired Rotten Tomatoes and Flixster from WarnerBros. Fandango already has a VOD movie service called FandangoNow.P E R S O N A L I T I E SArthur CinaderArthur Cinader, the creator of the J. Crew clothing brand, passed away. He was90 years old.CondomsThe Food and Drug Administration and industry standards groups have openedup the one-size fits all condom restrain. A Boston based company, myONEPerfect Fit, has begun selling custom fit condoms in 60 sizes, in combinations of10 lengths and 9 circumferences. A federal study found that only one third ofAmerican men use them. Also, until recently, standard condoms had to be atleast 6.69 inches long but studies find the average erect penis is roughly an inchshorter.Lego/Women ofNASAOn November 1st, toy manufacturer Lego is launching four new mini-figuresreferred to as four trailblazing Women of NASA: Sally Ride (astronaut), MaeJemison (astronaut), Nancy Grace Roman (astronomer) and Margaret Hamilton(computer scientist). The new Lego ideas set is a celebration of the NASAwomen for their contributions to space exploration and astronomy. The fourfigures are accompanied by Lego blocks to recreate the spacecraft and settingswhere the women made their mark on space history.Playboy/TransgenderPlaymateFor the first time in its 64-year history, Playboy magazine will feature atransgender playmate. The French model Ines Rau (26) will appear as theNovember centerfold in the first issue since the death of founder Hugh Hefner.P U B L I S H I N GHearst/RodaleMedia entity Hearst acquired all of health, fitness and lifestyle publisher Rodale,whose 93 publications have distribution in 64 countries. Key publications: Men’sHealth and Women’s Health, Prevention, Rodale’s Organic Life, Runner’s Worldand Bicycling. The transaction amount was not disclosed.R E G U L A T I O N SBroadcast Licenses/RevocationFCC Chairman Ajit Pai says that “under the law, the FCC doesn’t have theauthority to revoke a license of a broadcast station based on the content of aparticular newscast” – a response to President Trump’s tweet that the FCCshould look into revoking an NBC license because of fake news reportagealleging that the president wanted to augment the U.S. nuclear arsenal by 10x.Week of October 23, 20173 of 7

R E T A I LCVS/AnthemThe New York Times reported: Anthem, one of the nation’s major healthinsurance companies, is planning to start its own business to manage prescriptiondrug plans by partnering with CVS Health, the large pharmacy benefit managerand drugstore chain.Note: Anthem’s contract ends with its current health partner Express Scripts in2020. The new arrangement is expected to save Anthem about 4 billion annually.NordstromThe high-end, 116-year-old retail chain Nordstrom (360 stores in the U.S.) hasshelved its efforts to go private until after the holiday season.Wal-Mart/Lord &TaylorRumors are circulating that Wal-Mart Stores is near completion of a deal to addLord & Taylor clothing and accessories to its website.S P O R T SNew York Yankees/Vision EsportsMajor League Baseball franchise New York Yankees made a major equityinvestment in the burgeoning eSports business with the formation of apartnership with Vision Esports, the largest shareholder of three eSports relatedcompanies including Echo Fox, which fields 10 competitive gaming teams; TwinGalaxies, which compiles gaming statistics and rankings; and eSports contentproduction company Vision Entertainment.T R A N S P O R T A T I O NCashless TollsThe Metropolitan Transportation Authority reported that roughly 90% of driversroll through MTA plaza tolls using the electronic E-ZPass payment system. Forthose who pay cash, tollbooths have been replaced with cameras that capturevehicle license plates, allowing the MTA to bill drivers by mail. When MTA bridgesand tunnels went cashless, as reported by The Wall Street Journal:Pay PlazaCashless TransitionBronx-Whitestone BridgeSeptember 30, 2017Throgs Neck BridgeSeptember 30, 2017Verrazano-Narrows BridgeJuly 8, 2017Robert F. Kennedy BridgeJune 15, 2017Cross Bay Veterans Memorial BridgeApril 30, 2017Marine Parkway-Gil Hodges Memorial Bridge April 30, 2017Queens Midtown TunnelJanuary 10, 2017Hugh L. Carey TunnelJanuary 4, 2017Henry Hudson BridgeNovember 10, 2012V I D E OCBS/SportsStreaming ServiceCBS teased out the launch – “soon” – of its streaming sports video service whoseemphasis will be news and talk instead of live games.Clypd/NielsenNielsen is collaborating with programmatic TV platform Clypd to enableadvertising agencies to execute media plans based on custom audiencesegmentation. Nielsen Marketing Cloud data sets included: Nielsen CatalinaSolutions, MarketBreaks, Nielsen Buying Insights and Nielsen TV MRI Fusion.Week of October 23, 20174 of 7

V I D E O (cont’d)CNN/DronesCNN received permission from the Federal Aviation Administration (FAA) to flydrones while covering news events involving large crowds.Fox/AddressableVOD TV AdsFox Networks (Fox Broadcasting, FX, National Geographic and Fox Sports) hasbegun selling addressable TV ads on its ad supported VOD platform throughoutthe Comcast footprint (19 million households) and streaming via Hulu, in whichNews Corp. is an equity holder. FreeWheel, a division of Comcast, handles thedynamic ad insertions.Fox/TrueX/InnovidTrueX, the 21st Century Fox owned advertising platform and video marketingplatform Innovid are teaming up to deliver interactive “Engagement Ads” to TVdevices. The ad format is currently available on the FX app on Roku devices andwill roll out to the Roku apps for the remainder of the 21st Century Fox portfolioin the near future. How it works: before users begin watching a show, they canchoose to have a lean back experience with a typical advertising commercial loadshown to them or they can engage with a longer ad before the show starts andgo ad-free for the duration of the program.Google/CBSGoogle is partnering with CBS, Disney, Turner and NBCUniversal to deliver ads tostreaming content. The company said that it has updated DoubleClick forPublishers to improve viewing forecasts and content management and isdeveloping more flexible ad units for video streaming. Other companies it hasinked deals with to deliver ads in streams: Bloomberg, AMC, CW, BBC Americaand Lifetime.Hallmark/PublishingHallmark Publishing’s releases for the 2017 holidays include three publicationsbased on Hallmark Movies: Journey Back to Christmas, Christmas in Homesteadand A Heavenly Christmas.NBCU/SnapchatSocial media platform Snapchat and NBCU have pacted to create a digitalcontent studio whose mission will be to create made-for-mobile video (scriptedand unscripted). Initially, the entity will create content exclusively for Snapchatbut there is a hint that it might create video content for other platforms as well.Note: NBCU has a 500 million investment in Snapchat.Nielsen/SVODMeasurementNielsen launched a new syndicated subscription video on semand service thatwill provide data comparable to what Nielsen provides for linear TV, includingratings, reach, frequency and demographics. First companies to sign up: A&ENetworks, Disney/ABC, Lionsgate, NBCUniversal and Warner Bros. The servicewill only provide viewership data to the individual networks.NetflixNetflix claims nearly 53 million U.S. subscribers at the close of third quarter2017. Internationally, the number grew to 56.5 million.Week of October 23, 20175 of 7

V I D E O (cont’d)Twitter/VideoWebsite CardTwitter video is rolling out a new ad format that places a clip on top of a landingpage once someone clicks on an ad. The unit, dubbed Video Website Card, showsup as a promoted tweet with autoplay video within Twitter newsfeeds. How itworks: if someone clicks on a link below the video, they are directed to a landingpage within Twitter that pulls the video at the top of the page while a websiteloads within the bottom portion of the screen.Twitter/#FuelTwitter created a new arm of its brand strategy services, #Fuel, to produce short6-second video advertisements as well as to help advertisers make contentgeared specifically for the platform.Verizon/OTT ServiceVerizon has pushed back the launch of its online TV service to spring 2018. RivalsvMVPDs: AT&T’s DirecTV Now, Google’s YouTube TV, Dish’s Sling TV and Sony’sPlayStation Vue.Vizio/LitigationA federal judge has refused to authorize an immediate appeal of a decision thatallowed consumers to proceed with a video privacy lawsuit against TVmanufacturer Vizio. The litigation, which began in late 2015 between consumersand the smart TV manufacturer, centers on allegations that the company tracksTV viewers by default and then shares data about their viewing histories withcompanies that send targeted ads to people’s phones, tablets and other devices.Week of October 23, 20176 of 7

TOP 20 BINGE-RACED SHOWS ON NETFLIX (2013-SPETEMBER 2017)RANKPROGRAM1Gilmore Girls: A Year in the Life2Fuller House3The Ranch4Marvel’s Defenders5The Seven Deadly Sins6Trailer Park Boys7Santa Clarita Diet8F is for Family9Orange is the New Black10Stranger Things11Friends From College12Grace and Frankie13Wet Hot American Summer14Atypical15Unbreakable Kimmy Schmidt16House of Cards17Master of None18Luther19GLOW20Arrested DevelopmentSource: USA TodayWeek of October 23, 20177 of 7

Bros. Fandango already has a VOD movie service called FandangoNow. PERSONALITIES Arthur Cinader Arthur Cinader, the creator of the J. Crew clothing brand, passed away. He was 90 years old. Condoms The Food and Drug Administration and industry standards groups have opened up the one-size fits all condom restrain. A Boston based company, myONE Perfect Fit, has begun selling custom fit