iWorld
CEA: Digital sources for content on the rise among US adults
MUMBAI: The latest study from the Consumer Electronics Association (CEA) finds that while the vast majorities (79 per cent) of online US adults obtain the video content they watch from traditional TV programming providers such as cable, satellite or fiber-to-the-home, a significant number of viewers are turning to digital sources as well.
In addition to traditional television programming, DVD/Blu-ray discs (66 per cent), free video streaming services (47 per cent) and paid video streaming services (37 per cent) are also common sources of video content.
More than half (53 per cent) of consumers say they skip commercials, yet they site traditional TV programming as being critical to the discovery of new video content, for both movies and TV shows. The sources consumers use most frequently to discover new movies are channel surfing (44 per cent), on-screen program guides (44 per cent), previews at the movie theater (39 percent), commercials on TV (39 per cent) and word of mouth (37 per cent). The leading ways consumers discover TV shows are channel surfing (50 per cent), on-screen program guides (47 per cent), TV commercials (47 per cent), word of mouth (34 per cent) and network websites such as NBC or CBS (27 per cent).
iWorld
Snapchat parent Snap cuts 16 per cent of workforce in AI-driven restructuring
The Snapchat parent is axing around 1,000 jobs and closing 300 open roles to save $500m, as artificial intelligence makes smaller teams the new normal
CALIFORNIA: Snap is snapping. The Snapchat parent has confirmed plans to cut around 1,000 employees, roughly 16 per cent of its full-time workforce, as it bets that artificial intelligence can do what headcount once required. Shares jumped more than 10 per cent in premarket trading on the news, a brisk vote of confidence from a market that has watched the stock shed about 31 per cent this year.
The restructuring, which also closes more than 300 open roles, follows pressure from activist investor Irenic Capital Management, which holds an economic interest of about 2.5 per cent in the company and has been loudly pushing Snap to tighten its portfolio and lift performance. The firm got what it asked for, and then some.
Chief executive Evan Spiegel told employees the cuts would reduce annualised expenses by more than $500m by the second half of the year. The company expects to incur charges of between $95m and $130m related to the layoffs, mostly severance, with the bulk landing in the second quarter. Staff in Snap’s North America team were asked to work from home on the day of the announcement.
The financial backdrop is not without bright spots. Snap expects first-quarter revenue to rise around 12 per cent to approximately $1.53 billion, broadly in line with analyst estimates. Adjusted core profit for the January to March quarter is forecast at about $233m, comfortably ahead of Wall Street’s expectation of $186.8m.
The harder question surrounds Specs, Snap’s augmented reality smart glasses subsidiary, which Irenic has urged the company to spin off or shut down entirely. The unit has absorbed more than $3.5 billion in investment and burns through approximately $500m in cash annually. Snap is pressing ahead regardless, with a consumer product expected later this year, even as Meta leads the market in the segment.
Spiegel is betting that leaner teams, smarter machines and a consumer AR play can restore Snap’s credibility with investors who have run out of patience. The redundancy notices have gone out. The harder restructuring, the one that requires a hit product rather than a headcount reduction, is still very much pending.
