iWorld
OTT, Multiscreen and Cloud TV Spark Innovation for MENA’s Connected TV Market
NEW DELHI: Connected TV is rapidly evolving in MENA region (Middle East and North Africa), with providers, broadcasters and manufacturers such as STC, OSN (Orbit Showtime Network) and Samsung already offering consumers increased access to content through smart devices.
This growing saturation of the market provides the backdrop for this year’s TV Connect MENA, which has developed in recent years to focus on IPTV, OTTtv, multiscreen and cloud TV services for regional service providers.
The number of connected devices, particularly tablets, is fuelling demand for OTT, cloud and multiscreen services in MENA, and is expected to dramatically increase over the next five years. Informa Telecoms and Media reports that 6.5 million tablets were sold across the Middle East and Africa in 2012. That figure is forecast to increase to a staggering 32.1 million in 2016.
Informa Telecoms & Media research analyst Michael Dean comments on the growth opportunity: “The OTT-content and services landscape across MENA has traditionally been rather barren, but the situation is changing quickly with OTT start-ups starting to emerge, and the number of rival operator initiatives increasing.
“Mobile broadband may currently be in the nascent stages across much of the region but it is increasingly becoming a greater growth area for rural internet users in many MENA markets. In addition, the Gulf Cooperation Council is scheduling to have LTE networks in place by end-2013, meaning there will be a further rise in mobile data usage. This will undoubtedly place more demand on increased content delivery. Saudi Arabia and the UAE alone already have traditionally high levels of TV content consumption. For example, according to OSN, the average household watches six to seven hours of TV content per day,” adds Dean.
Focussing on OTTtv, multiscreen and cloud TV services, and the opportunities within the IPTV industry, the annual TV Connect MENA, holds more relevance than ever for service providers, telecom/cable/satellite operators, broadcasters, content providers, gaming aggregators and CE manufacturers.
TV Connect MENA conference director Kamelija Stefanova comments: “The event will explore OTT and IPTV convergence; offer presentations about developing content monetisation strategies; look at the business of CDNs and data centers for telecom operators; assess the role of advertising agencies in the connected media space; show best practise OTT and IPTV projects; and see how multiscreen services are becoming part of the digital home. We as organisers are in a unique position to provide one meeting place for broadband, LTE and TV markets and offer learning opportunities for maximising the power of 4G/LTE network to offer TV on the Go, utilising user interface for improved content discovery and using apps for on-demand video services.”
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.
