Proximity

What Would It Take to Get Businesses to Focus Less on Shareholder Value?

To make world-class corporate citizenship and profitability work in tandem, we need to change the rules so that racing to the bottom is no longer the most effective way to compete, and to ensure that treating people well is the profitable thing to do. This means continuing the push to raise the minimum wage and to make the provision of decent health and educational benefits mandatory — or at the very least, heavily tax-advantaged. It means grappling with the explosion of contract work, ensuring that employers can’t evade their responsibilities by simply relabeling employees as contractors.

Source: What Would It Take to Get Businesses to Focus Less on Shareholder Value?

Spotify missed big on its bottom line

Spotify missed big on its bottom line. Investors sold the stock on the news. In recent after-hours trading, shares in the streaming music company were down $14.30 a share, or 8.41%, to $155.70

The streaming music company’s number of paying subscribers grew to 75 million during the first three months of the year, in line with expectations and maintaining Spotify’s lead in a heated battle with Apple Music, which has 40 million paying subscribers. But diminishing revenue-per-user, as Spotify races to boost its membership through discounted family and student plans, took a toll.

Source: Spotify Q1 earnings – Business Insider

Disney Digital to launch an over-the-top video app for millennials, as it woos advertisers burned by YouTube 

Ahead of the 2019 launch of Disney’s Netflix competitor, the company’s digital arm will launch a free, over-the-top video app aimed at millennials sometime this summer. The hook for advertisers is that they’ll have a way to reach Disney’s millennial audience, without the concerns that have afflicted YouTube in recent months.

Source: Disney Digital to launch an over-the-top video app for millennials, as it woos advertisers burned by YouTube | TechCrunch

Big Data Is A Sham

Decades of research has shown that you can get a pretty accurate picture of the US population from a sample of under 3000 people, if you choose them carefully. If you really, really want to drop your margin of error as low as possible, you look at about 9000. After that, there’s just not a lot of gains to be had. U.S. pollsters looked at the intentions of hundreds of thousands of Americans and still called the 2016 election wrong. Politicians’ careers depend on accuracy. Creative people’s careers depend on insights, and that’s where small data rules.

Source: Big Data Is A Sham

True enough.  But big data companies are not trying to predict population trends.  They want to microtarget individuals.

Netflix impresses on subscriber growth in Q1 

Netflix’s content investment strategy is seen as the key instigator for its growth, especially as Netflix invests more in local-language fare. In 2018, Netflix plans to spend $10 billion on content and marketing: $8 billion in content (both originals and licensed acquisitions), yielding 700 originals in total; and $2 billion on marketing, with Q1 marketing spend reaching $479 million, up 77% YoY. Going forward, more spend will go to producing original content or licensed originals as a percentage of overall investment, compared with spending on licensed content.

Source: Netflix impresses on subscriber growth in Q1 – Business Insider

We Already Know How to Protect Ourselves From Facebook 

Facebook may complain that these changes to data collection and use would destroy the company. But while these changes would certainly challenge the business model of many players in the digital economy, giant companies like Facebook would be in the best position to adapt and forge ahead.

If anything, we should all be thinking of ways to reintroduce competition into the digital economy. Imagine, for example, requiring that any personal data you consent to share be offered back to you in an “interoperable” format, so that you could choose to work with companies you thought would provide you better service, rather than being locked in to working with one of only a few.

Source: Opinion | We Already Know How to Protect Ourselves From Facebook – The New York Times