The U.S. should follow Australia’s example and require tech platforms to share revenue with local, independent news organizations, Microsoft President Brad Smith wrote Thursday. The company endorsed the Australian proposal last week after Google said it would end search services in the country if the Australian Parliament approved the proposal. The U.S. “should not object to a creative Australian proposal that strengthens democracy by requiring tech companies to support a free press,” Smith said now. “It should copy it instead.”
Direct-to-consumer selling is a “highly influential” U.S. trend, up 24% last year to $17.8 billion, the National Retail Federation reported Wednesday. Google is one of the most important channels for reaching consumers online, as consumers move from "I found it on Google" to "I bought it on Google," NRF said. Mid-2020, 45% spent more time on Amazon, up from 39% when the pandemic was in early stages. Now, half of online shoppers rely on Amazon more than pre-pandemic, the association said. Facebook’s role in consumer shopping rose, with 34% of surveyed consumers saying they use it to research products. More than half of consumers say they bought more online due to seeing Facebook advertisements; 18% use the platform to make purchases.
Akamai experienced “continued high levels” of internet traffic in Q4 for over-the-top video services and downloads of e-gaming software, CEO Tom Leighton told a quarterly call Tuesday. The platform's traffic reached a record of 181 Tbps Nov. 10, 50% higher than any 2019 peak, he said. “As life returns to a more normalized pre-pandemic state, we do not expect to see our traffic on our platform decrease,” said Chief Financial Officer Ed McGowan. “The pandemic has accelerated consumer usage of the internet in areas like OTT video, gaming and e-commerce, and we believe this usage pattern will likely persist.” Akamai expects traffic to continue to grow in 2021 “at a rate more in line with pre-2020 historical levels,” he said. The stock closed 10.9% lower Wednesday at $105.10.
Qualcomm's 5G X65 modem includes Globalstar's band n53, Globalstar said Tuesday. It's "a significant milestone in our efforts to commercialize our spectrum in the U.S. and all other countries where we have or expect to obtain terrestrial authority," said Globalstar Vice President-Strategy Kyle Pickens.
T-Mobile wants “simple, streamlined rules” for the emergency broadband benefit program, it said in a call with an aide to acting FCC Chairwoman Jessica Rosenworcel. “T-Mobile is uniquely positioned to help those in need because it is one of the largest Lifeline providers in the country and offers a variety of cost-effective pre- and post-paid broadband plans, including in-home broadband, that rival wireline offerings,” said a filing posted Monday in docket 20-445.
The Virginia Senate voted 36-0 for a comprehensive privacy bill (SB-1392) at a livestreamed floor session Friday. One senator didn’t vote due to a conflict of interest. Companion HB-2307 cleared the House 89-9 on Jan. 29 (see 2102010035). Virginia’s attorney general would enforce the rules. “This bill is an effort to set clear expectations for companies who handle or collect consumer data, and to proactively protect the rights of consumers,” said SB-1392 sponsor Sen. David Marsden (D) in a statement. “We’ve been overwhelmed with feedback from people who have been tracking the Consumer Data Protection Act this legislative session.” The House and Senate versions must be reconciled before session ends Feb. 11, but “that appears to be a mere formality given that the bills are identical and the House bill is already working its way through the Senate,” Husch Blackwell attorney David Stauss blogged Thursday. Other privacy bills are gaining momentum in New York and Washington state, Kelley Drye lawyers blogged Wednesday.
About one in 10 U.S. online shoppers bought something on eBay during the holiday season, said CEO Jamie Iannone on a Q4 call Wednesday evening. In Germany, it was one in seven, and in the U.K., one in four, he said. The platform experienced “unprecedented traffic levels” for most of 2020, he said: “More than 100 days in 2020 exceeded peak 2019 traffic levels.” The holiday contributed to record volume “with high velocity in hard-to-find and sold-out items,” he said. “Refurbished gifts also emerged as a top trend, and we saw many products from top brands in our certified refurbished experience sell out.” The stock closed 5.3% higher Thursday at $61.12.
The production capacity shortage in global semiconductors “appears to be a long-term phenomenon” spanning many industries but seems worst in the automotive sector, Himax CEO Jordan Wu told a quarterly call Thursday. “The shortage has become more severe.” The integrated circuit maker “engaged early,” leveraging its “long-term business relationships” with foundries and “back-end suppliers,” and “successfully secured more capacity for 2021, compared to the level of Q4," he said (see Q4 materials here). The company’s “aim” is to “fully utilize the capacity accessible to us” through its network of foundries. There’s little likelihood of a “significant” industry capacity increase “anytime soon,” he said. “Strong demand is likely to persist longer than expected.” Another “impressive quarter of high growth” is expected for notebooks, said the executive, citing "persistent remote working and e-learning.”
Google grew its “merchant community” by more than 80% in the past year, “with significant growth in small- and medium-sized businesses,” said Google Chief Business Officer Philipp Schindler on a Q4 call Tuesday. The pandemic has obviously been “a very, very challenging environment for SMBs,” said Schindler. “Many weren't online” at all, and others “lost line of sight to demand overnight” due to COVID-19, he said. About a year ago, “as soon as we saw the scale of the impact, we really accelerated product” that gave SMB customers “signals to help them actually navigate and pivot” to the new reality, he said. As more consumers moved online during COVID-19 lockdowns, “and advertisers obviously responded by reactivating spend, we also saw our advertiser base grow,” said Schindler. “As traditional TV ratings continue to decline, TV advertisers are turning to streaming platforms like YouTube to reach people who are no longer watching TV.” Smart TVs “are our fastest-growing screen” for YouTube viewing, said Schindler. The stock closed 7.3% higher Wednesday at $2,058.88.
Social media usage and online shopping traffic "exploded" during COVID-19 lockdowns, forcing many brands to embrace augmented reality and virtual stores “to remain competitive and engaged with their customers,” reported ABI Research Wednesday. It estimates the global AR market in retail and commerce will exceed $12 billion in 2025. “Within the next two years, more and more brands will transfer their marketing campaigns and online shopping platforms from static webpages and 2D images to interactive experiences and platforms,” said analyst Eleftheria Kouri. “Online shopping will continue to grow after the pandemic, especially in product categories supported by AR experiences."