2023 Digital News - Week 3

1. YouTube is testing free adv-supported streaming channels.

   YouTube is testing a new ad-supported free streaming service. Users will have access to a wide variety of content, like TV shows, movies, and TV channels, supported by ads, similar to how traditional TV works. This new test is confirming YouTube's willingness to compete with other streaming players (Roku, Pluto TV, and so on) and offer its viewers all the content they like on one platform. In addition, the decision is consistent also with Google's push for advertising to become a primary income source.

2. The Netflix Week.

   The last week has been an important one for Netflix, where should we start? First, Netflix reported its Q4 earnings, beating expectations. The company added 7.7 MM subscribers in Q4, well above the 4.5 MM it had anticipated. Netflix reached $7.85 BN, continuing its trend of slow revenue growth. In addition to the strong financial results, Netflix announced that its founder and co-CEO, Reed Hastings, will step down after more than two decades at the company. COO Greg Peters will be promoted to co-CEO and will lead the company alongside Ted Sarandos. Finally, Netflix also announced that will start soon identifying which accounts have passwords that are shared by people in different houses. This will be done by monitoring access to the platform through IP addresses, device IDs, and account activity. Subscribers that wish to share Netflix with other people not living with them will have the option by paying an extra.

3. Google and Microsoft joined the biggest tech layoff ever.

   Several tech companies, including Google, Microsoft, Salesforce, and Amazon, have announced layoffs in the first month of 2023. Last week, Google announced a cut of 12,000 people and Microsoft followed with additional 10,0000 jobs. According to Layoffs.fyi, a layoff tracking site, over 55,300 employees from more than 154 technology firms have been impacted by job cuts in January 2023. What are the main reasons behind this massive layoff? Google CEO Sundar Pichai's statement was in line with what Benioff (Salesforce CEO) already said about an economic slowdown that cause a review of the overhiring that happened during the Covid-19 pandemic.

4. AliExpress will activate in Europe the Buy Now Pay Later feature.

   Alibaba, the Chinese e-commerce giant, is planning to expand its "buy now, pay later" service to AliExpress in Europe. The service, which is already available in China, allows customers to purchase items and pay for them in installments, without having to pay interest. The service will be momentarily available in Spain, France, and Germany and will be in collaboration with fintech company Splitit Payments. In any case, at a time when global demand is declining due to inflation, companies' use of this model serves to counteract declining sales. For Alibaba, the situation is similar, as orders placed through AliExpress in the last three fiscal quarters have dropped significantly.

5. Instagram is giving more control to users.

   Instagram is testing a new feature called "Quiet mode" that will allow users to schedule times when they want to disconnect from the app. During this time users will not receive notifications and their contacts will be advised about the “quiet time” if they try to get in touch with them. This is Instagram’s response to growing concerns about the impact of social media use on mental health, and the need for users to disconnect. In addition, with the "Not interested" label users can hide posts they are not interested in. In this way, users will be able to curate their feeds and see content that they prefer. This feature, on the other side, will also help Instagram to identify and learn more about users’ interests and preferences.

   **BONUS**

6. Twitter sold office supplies with an online auction.

   Yes, you read it right. Last Wednesday, Twitter closed a one-month-long auction where more than 600 lots of office supplies have been sold to some lucky participants. In particular, you could have found coffee machines, desks, and chairs but also a blue neon Twitter sign (that apparently has been sold for around 100,000 $), a pizza oven, and soundproof phone booths. If you want to have a look at the whole offer you can just go here. Of course, Musk is not expecting to pay Twitter’s bills with that money but certainly, this move is another strong message of Musk’s renovation plan (and also a sign of Twitter’s bad financial moment?).