Over-the-top video and e-gaming software downloads sparked another quarter of "very strong" internet traffic growth, said Akamai CEO Tom Leighton on a Q1 call Tuesday. Traffic reached an all-time high of 200 Tbps March 16, 19% higher than the peak in Q1 2020, and two and a half times the traffic peak in Q1 2019, he said. Daily peaks were high in Q1, averaging 143 Tbps, exceeding 110 Tbps “pretty much around the clock,” he said. Akamai is starting to see “some early signs” of recovery in internet traffic from the hotel and travel sector, said Chief Financial Officer Ed McGowan. “It's probably still a few quarters before we start to see that business return to a growth engine for us.” Retail internet traffic remains “a mixed bag,” he said. There are some Akamai retail accounts “that are doing well, some that aren't doing well,” he said. “We’re optimistic, but still a ways to go before we declare a victory there.”
QVC and HSN are listed among the 10 free ad-supported “lifestyle streaming” channels Vizio added to its SmartCast smart TV operating system, said the vendor Tuesday. They can be accessed through the SmartCast home screen and complement Vizio’s existing WatchFree service. Vizio's Q1 call May 11 will be its first since going public March 25 (see 2104230001).
Forty-one percent of consumers are comfortable going back to movie theaters, including 50% of 18-34-year-olds, said a Tuesday Parks Associates survey of U.S. broadband households. Theaters returned to being the top preference for watching new films, Parks reported, saying most consumers are “neutral or unlikely to subscribe" to an additional over-the-top video service "just to watch a new release.” The pandemic "roiled traditional content windowing" and some consumers are ready to return to theaters, but “the studios will have to continue to experiment with hybrid release strategies,” said analyst Steve Nason. Parks holds a virtual Future of Video conference Wednesday.
FuboTV launched a branded content studio for advertisers at Interactive Advertising Bureau NewFronts Monday, along with a partnership with LiveRamp to boost its addressable ad capabilities and shows from Terrell Owens, Matthew Hatchette and Gilbert Arenas on Fubo Sports Network. Advertisers can work with fuboTV’s creative team on custom-branded content to air on Fubo Sports Network, it said.
Apple rules imposed on music streaming app developers violate EU competition law, the European Commission said. Its tentative findings in a statement of objections announced Friday tentatively said Apple has a dominant position in the market for distribution of music streaming apps through its App Store. For app developers, it's the only gateway to consumers who use the smart mobile devices running on Apple's iOS operating system, the EC said. Apple devices and software form a "closed ecosystem" in which the company "controls every aspect of the user experience for iPhones and iPads." The App Store is part of that ecosystem, and it's the only app store iPhone and iPad users can turn to for downloading apps for their mobile devices. Consumers are loyal to the brand and don't switch easily, so to service iOS users, app developers must distribute their apps via Apple's store, subject to mandatory and non-negotiable rules. Two rules are under investigation: (1) Mandatory use of Apple's proprietary in-app purchase system (IAP) for distribution of paid digital content, on which Apple charges a 30% commission on all subscriptions bought, and (2) "Anti-steering provisions" that hamper app developers from telling users about alternative -- and generally cheaper -- purchasing possibility outside of apps. These rules distort competition in the market for music streaming services by hiking the costs of competing music streaming app developers, raising consumer prices, the EC said. They make Apple the intermediary for all IAP transactions. Spotify had complained. "At the core of this case is Spotify's demand they should be able to advertise alternative deals on their iOS app, a practice that no store in the world allows," an Apple spokesperson said. Spotify doesn't pay Apple any commission on over 99% of its subscribers, and just 15% on those remaining subscribers acquired through the App Store. The EC argument on Spotify's behalf "is the opposite of fair competition," said the spokesperson. A recent Senate Judiciary Antitrust Subcommittee hearing on app store competition "heard troubling allegations about Apple and Google's behavior," said Chairwoman Amy Klobuchar, D-Minn.: The EC would "only reaffirm" that app store policies and conduct need careful scrutiny in the U.S. as well. The European Consumer Organisation welcomed the charges.
Discovery+ drove subscriber growth at Discovery in Q1, with the direct-to-consumer service crossing 13 million subscribers at the end of March, said CEO David Zaslav in a Wednesday report. Discovery has 15 million paying D2C subscribers globally. Q1 revenue grew 4% year on year to $2.8 billion. U.S. ad revenue fell 4% due to lower overall ratings, pay-TV declines and lower inventory, partially offset by higher pricing and the continued monetization of content offerings on discovery+ and TV Everywhere, said the company. Discovery+ recently launched on Comcast Xfinity and Amazon Prime Video.
Spotify officially rolled out its podcasting platform Tuesday, allowing creators to offer subscriptions through a separate platform, beginning in the U.S. A week earlier, Apple introduced a podcast subscription platform (see 2104200070). The Spotify version -- which promises revenue, reach and discoverability among the service's 345 million customers -- will be available through its Anchor service, letting podcasters mark episodes as subscriber-only. For the first two years, creators will receive all subscription revenue; in 2023, Spotify will begin charging 5% of revenue for the service. Anchor pitched it as a way for podcasters to save time with setup and management, saying they can be up and running with a subscription service “in minutes.” The platform allows them to choose one of three tiers: $2.99, $4.99 or $7.99 monthly. Content will be searchable and discoverable within Spotify, which is also testing the Spotify Open Access Platform for creators to deliver paid content to existing paid audiences elsewhere while retaining direct control over the relationship, it said. Another revenue opportunity for podcasters is through the Spotify Audience Network (SPAN), an audio advertising marketplace to connect with listeners. Beginning Saturday, Spotify will open SPAN to select independent creators using Anchor, billing it as a “better value” to advertisers than solutions using Really Simple Syndication. A Q&A feature will allow podcasters to invite “their most loyal supporters” to interact directly with the show, Anchor said. It expects to add functionality soon allowing them to contact subscribers directly to offer additional perks like merchandise and promo codes. It's also collaborating with NPR to make some of its shows available sponsor-free to paid subscribers. How I Built This With Guy Raz, Short Wave, It’s Been a Minute With Sam Sanders, Code Switch and Planet Money will be available May 4, marked by “Plus” in the title. Podcast listening got a boost from stay-at-home trends during the COVID-19 pandemic, said Futuresource: The share of survey respondents listening to podcasts grew from 36% in 2019 to 41% at year-end 2020.
Spotify announced Monday an integration with Facebook on a “miniplayer experience” based on social discovery. “Discovery is important to Spotify,” blogged the streaming audio service, saying users will be able to listen to music and podcasts from Spotify within the Facebook app on Android and iOS devices without switching between apps. Spotify Free users can have the experience via shuffle mode with accompanying ads from Spotify. To use the miniplayer, users tap the Play button on songs friends shared to their news feed. They have to consent the first time using the feature by hitting “Continue”; if they're logged in to Spotify, the apps will automatically switch and playback will start from within Spotify. Audio will keep playing as users scan their news feed. Users will also be able to play songs via the miniplayer through select verified artists’ posts or from user-uploaded videos on Facebook that contain licensed music, Spotify said. The integration is available in the U.S. and more than 20 other countries.
Roku is rebranding as "Roku Originals" the content it acquired with the Quibi buy in January (see 2101080028), said the company Wednesday. That will also be the brand name for future original programming on The Roku Channel, its ad-supported offering.
Lapping its first year, Sonos added exclusive content to its advertising-supported and premium music streaming services, it said Tuesday. Sonos bills free Sonos Radio and the $7.99 monthly Sonos Radio HD as part of a platform for “artists, DJs, and curators to connect with listeners” in a way that feels "personal," said Joe Dawson, director-content & brand platforms. Ghostface Killah’s Blue & Cream station became available Tuesday on the premium tier, and M.I.A.’s OHMNI FM station goes live May 5, Sonos said. New genre stations launched Tuesday for Sonos Radio HD are Scarlet Magnolia, Infinite Darkness, Glide Path, New Wave and Drum'n'Bass. More are due through June. Among stations coming to ad-supported Sonos Radio May 5 are Music for Moms and stations featuring Canadian music and songs of the season, starting with Cinco de Mayo. A live event from Van Gelder Studio will feature an audio stream of live performances by jazz musicians including Joey DeFrancesco. Sonos Radio is available through the Sonos app. Select Sonos Radio shows are available at www.mixcloud.com/sonos.