iWorld
Star India’s Hotstar records 7.2 million views on IPL day 1
MUMBAI: After setting the record for the largest sporting event on digital with the ICC Cricket World Cup 2015, Star India’s Hotstar is off to a stunning start with Pepsi Indian Premier League (IPL) 2015.
The platform recorded 7.2 million video views for the first match between Mumbai Indians and Kolkata Knight Riders on 8 February. This is six times the viewership on starsports.com last year for the first match of Pepsi IPL 2014.
Coming soon on the back of the World Cup, which recorded the biggest digital traffic for a single sporting event for a broadcaster globally, the surge in traffic for the start of start of Pepsi IPL 2015 suggests that the tournament is likely to set new global records for Hotstar.
Hotstar is streaming all the 60 games of the IPL. With a dramatic surge in viewership on digital platforms in the last 12 months, the platform is likely to reach more than 100 million fans over the course of Pepsi IPL 2015. It is also likely to see a striking growth in video consumption over last year’s version, which was broadcast on starsports.com.
Hotstar will also be programming a digital-only pre-show that builds on the dramatic success of the two original shows it created for the ICC Cricket World Cup 2015, One Tip One Hand and Juicy Half Volley.
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.
