Loading...

Ayman's blog

Following is a transcript of the video.

Michelle Yan: 5G is coming. Well, technically it`s here. Kinda? Maybe? Slowly? This fifth-generation cellular network is 10 times faster than 4G LTE. That means instead of waiting five minutes to download a movie on Netflix in 4G, it will take just 30 seconds on 5G. So it could even replace your home`s current high-speed internet service.

The new standard means devices can communicate with each other with no lag. You know how when you write with a pen, you see it as it happens? That`s zero latency. That`s pretty much what 5G can do: no waiting. That opens up the possibility for things like wireless VR experiences and more reliable driverless cars thanks to the ability to analyze and process data at faster speeds. It`s an exciting time for faster, more connected devices. But there are some obstacles 5G needs to overcome before we can really reap all of its amazing benefits.

First, we need a whole new infrastructure. Your cell phone provider, for example, will need to install a lot of new equipment for this new technology because 5G uses a totally different wavelength than the 4G standard your phone currently uses. The 5G standard uses millimeter waves, which are a lot shorter than the wavelengths 4G uses. The shorter wavelength means 5G can carry a lot of data much faster than 4G, but it also means a much shorter range. 4G wavelengths have a range of about 10 miles. 5G wavelengths have a range of about 1,000 feet, not even 2% of 4G`s range. So to ensure a reliable 5G signal, there needs to be a lot of 5G cell towers and antennas everywhere. We`re talking on every lamppost, traffic light, etc. because even trees can block 5G signals.

Antonio Villas-Boas: 5G isn`t gonna be cheap. You know, each node, or mini cell tower, needs some kind of connection to it, and that means laying down fiber optic cables, and, you know, it`s still an undertaking, and it`s definitely not in the millions. It`s definitely in the billions, possibly hundreds of billions.

Michelle: Not only will this cost billions of dollars, but there`s also pushback from many local communities.

Antonio: One of the biggest problems they face is actually local governments, local communities, who don`t want these carriers to build towers or antennas all over the place. Or maybe they`re afraid of the health risks, which is another big concern.

Michelle: Some are concerned that 5G radiation may cause cancer. The FCC so far has said that there aren`t any problems or concerns with 5G radiation, but they have said they still need to do more research. Despite all that, Verizon already rolled out the beginnings of its 5G network to parts of Chicago and Minneapolis. AT&T currently has about 19 cities with 5G capabilities, and Sprint and T-Mobile say they`ll be releasing their 5G network sometime in 2019.

So while 5G is being rolled out, it is very slow and in limited areas, and non-city and rural areas will be more difficult to cover since 5G has such a short range. But let`s say your internet provider successfully installed all the equipment around you. You still need devices that can run 5G. So far we`re only seeing a few that can do that.

Antonio: In the US, the only smartphones that we know about that have 5G is the Moto Z3 if you buy the extra Moto mod. There`s also the Samsung Galaxy S10 5G and also the LG V50 ThinQ.

Michelle: And you can expect 5G phones to cost you about 200 to 300 more than one without 5G. Verizon and Starry are also getting a head start in bringing 5G to your home internet. So if you`re one of the few people who have access to 5G right now, enjoy it.

Antonio: One of the things I`m really excited about with 5G, 5G is said to be a super open highway with many, many more lanes than the 4G LTE highway. Which means a lot less congestion, even during peak hours. I do estimate that eventually even 5G will be congested with the number of people connecting to it and also the extra stuff that`s gonna be used for 5G. At which point, we`re gonna have to step over to 6G.

Michelle: So while all the carriers are already starting to tout their 5G capabilities, don`t get too excited because it`s still going to be a few years before you can really take advantage of it.

Join the conversation about this story »

Bird Box Netflix

  • Viewers are flocking to ad-free video services like Netflix and Hulu, and it presents a big, long-term threat to the advertisers trying to reach them.
  • Advertisers blame the backlash on years of marketers flagrantly pushing out ads without regard to the user experience.
  • It`s especially a concern for advertisers trying to reach high-income consumers who can afford to pay to avoid ads.
  • Visit BusinessInsider.com for more stories.

As advertisers converge on the Digital Content NewFronts, the annual digital ad marketplace, one elephant in the room is the rise of ad-free entertainment at the expense of traditional, ad-supported TV.

Netflix is the most notable example, as is Hulu, with its ad-free tier; HBO, not to mention a slew of subscription-heavy services coming from Apple, WarnerMedia, and Disney.

On top of that, there`s an increasing number of ways people are avoiding ads when listening to music or reading the news, whether by paying for services like Spotify Premium, The Athletic, or The Information, or using ad blocking software.

Read more: Netflix is changing its strategy and letting creators peek into its walled garden as Apple and Disney competition looms

EMarketer predicted that by the end of 2018, 30% of internet users in the US would be using an ad blocker, up from 25% two years earlier.

Advertising to the wealthy will only get harder

Advertising industry execs say the trend is the result of marketers flagrantly shoving ads in front of people for years without regard to the user experience.

"The fact is, the advertiser has polluted the experience," Barry Lowenthal, CEO of The Media Kitchen, told Business Insider. "We have terrible ad loads, web pages are horrible."

It`s especially a concern for advertisers trying to reach high-income consumers who can afford to pay to avoid ads. Over time, that group will become scarcer and more expensive for advertisers to reach.

Marketers are increasingly finding the upscale consumer to be stronger in advertising avoidance, more fickle in engaging with content, and too time-poor to retain messaging, said Greg Paull, principal at R3, a consulting company to brands.

In entertainment, it`s really just been TV that has been ad-supported, and it`s a significant portion of media consumption, said Jay Friedman, president at Goodway Group.

"Whether it`s just the affluent or this becomes the norm for the majority of consumers, marketers need to face the fact that, while media consumption may be increasing, the opportunities we have to advertise to consumers may indeed decline in the next few decades," Friedman said.

Some like NYU`s Scott Galloway have pointed out that the consumption shift comes with societal implications.

"If people pay for ad-free, [advertising] becomes something you have to put up with because you`re unable to afford an ad-free environment," Joshua Lowcock, global brand safety officer at Universal McCann, told Business Insider. "Then the question mark is: Who are you advertising to, then?"

Agencies also stand to lose if they can`t adapt

Advertisers aren`t overly concerned about it now, agencies say. They have more immediate worries, like making sure their ads don`t pop up next to controversial or embarrassing content. Others aren`t even paying attention.

"We`re constantly surprised by how many super picky advertisers will throw caution to wind when buying YouTube," lamented a luxury media salesperson.

Lowenthal said he believes advertisers will find a way to survive, but those workarounds might not involve traditional media channels and agencies.

"As of today, we can reach plenty of rich people in advertising," Lowenthal said. "But one day it`ll be, `Oh my God, I can`t.` But at the same time as people want to avoid ads, clients don`t need agencies. There`s going to be enough clients doing it themselves, and it`ll be too late to do anything about it."

Tanya Dua contributed to this story.

SEE ALSO: People are fed up with TV ads. Here`s how NBCUniversal is trying to fix that.

Join the conversation about this story »

NOW WATCH: The rise and fall of Donald Trump`s 365 million airline

The United Arab Emirates` Supreme Federal Court upheld a life sentence against a Turkish citizen in a terrorism case, Emirates News agency (WAM) said on Monday.

Kenny Mitchell

  • Keeping an eye on major hires and promotions is one of the best ways to understand a company`s strategy. 
  • The Org tracks executive changes at companies big and small. 
  • Here`s a snapshot of the most important executive moves of the week across tech, consumer goods and retail.

Every week we bring you an overview of the most important executive changes from the past week. Last week, Snap named Kenny Mitchell as Chief Marketing Officer to lead all consumer and product marketing programs for the company. Read more about this and other notable executive changes.

Snap hires CMO to acquire new users through advertising

Snap has announced that Kenny Mitchell will join the company as Chief Marketing Officer  beginning in June. The social media company has struggled to grow its user base in recent years and the hiring of Mitchell is an indication that advertising will play a major role in the growth strategy going forward. Snap currently has 190 million daily active users versus 2.7 billion people using Facebook every day. Mitchell was most recently Vice President of Brand Content & Engagement for McDonald`s USA, where he guided the company`s strategic brand and consumer marketing agenda in the US. 

Facebook names new General Counsel and VP of Global Communications

Facebook has announced that Jennifer Newstead will join the company as General Counsel, overseeing the company`s global legal functions, and John Pinette will join the company as Vice President of Global Communications. Newstead currently serves as the Legal Adviser to the United States Department of State, overseeing work on all domestic and international legal issues affecting the conduct of US foreign policy. Pinette brings over two decades of experience working in communications across global health, finance, innovation and technology – most recently as the VP of Marketing and Communications at Vulcan.

Miguel Patricio appointed CEO of Kraft Heinz 

Kraft Heinz has announced that Miguel Patricio has been appointed as Chief Executive Officer as of July.  He joins the company after a successful career spanning two decades at Anheuser-Busch InBev where he served as part of the Executive Leadership team in various positions. Patricio most recently served as the Global Chief Marketing Officer at AB InBev where he developed and implemented a strategic playbook for global brands Corona, Budweiser and Stella Artois.

Nicole Miller becomes CEO of Nicole Miller

New York-based fashion brand Nicole Miller announced that founder Nicole Miller will take over as CEO of the company after Bud Konheim, the previous CEO, passed away last week. Miller, who previously served as President and Head Designer, will continue to personally oversee the development and expansion of the NICOLE MILLER brand as well as the design and showing of the Nicole Miller Collection at New York Fashion Week and other venues.

Panera Bread poaches COO from Krispy Kreme

Niren Chaudhary has been appointed President and Chief Executive Officer of Panera Bread, succeeding Blaine Hurst who is retiring from his current role as CEO in May. Chaudhary joins Panera from Krispy Kreme, where he has been the Chief Operating Officer and President of Krispy Kreme International since 2017. Hurst will remain on the Board of Panera and become Vice Chairman, and will work alongside Chaudhary to ensure a smooth transition. 

Christian Wylonis is the co-founder and CEO of The Org, where you can meet the people behind the world`s most innovative companies, explore organizational charts, stay updated on team changes, and join your own company. 

Join the conversation about this story »

NOW WATCH: This video shows the moment Sarah Sanders lied to a room full of reporters about FBI agents telling her they were happy Trump fired Comey

Lara Warner Credit Suisse

  • Populism was a hot topic of conversation at the Milken Institute Global Conference, where billionaire investors, Wall Street titans, and government officials gathered Monday to discuss how to increase global prosperity.
  • From the Democratic socialist politics of Congresswoman Alexandria Ocasio-Cortez to the nationalist politics of President Donald Trump, investors and corporations are trying to get a grip on what the current political movements mean for the world of finance.
  • Not everyone agreed on whether populism is good or bad for capitalism, but there was a strong sense that even conflicting populist movements have already changed how corporations think about their relationship to every day people. 
  • Read more stories like this on the Business Insider homepage.

BEVERLY HILLS — Populism was a hot topic at the Milken Institute Global Conference on Monday, where a group of the world`s business leaders gathered to discuss how to increase global prosperity.

From Brexit and the Gilets Jaunes in Europe, to the Democratic socialist politics of Congresswoman Alexandria Ocasio-Cortez and the nationalist movement around President Donald Trump in the US, many speakers said investors and corporations had to pay attention to what`s happening politically around the world.

In the first session of the day, Bloomberg News editor Stephanie Flanders asked a panel of investors whether they think anyone is taking steps to address the growing wealth gap and issues of inequity, widely seen as a root cause for populist political movements. 

Lara Warner, group chief risk officer at Credit Suisse, said she doesn`t see any real policy out there, but added that there is a new kind of relationship being struck between the public and private sectors. 

"In a way, I actually think the theme of populism is at the end of the day not a bad thing," Warner said, adding that Europe "to the degree that they have become majority populist "may be the first region to implement policies "that we can all get behind."

The topic came up again just a few minutes later a panel on global equity markets moderated by Goldman Sach`s Alison Mass. 

"Look at it simplistically. If you have no capital, why be a capitalist?" said Michael Hintze,  a billionaire and group executive chairman and senior investment officer at asset management firm CQS. "It is providing a very interesting trading, investment opportunity. You need to understand what`s happening here. It goes across the world. This is a global phenomenon."

Hintze, a major donor to the UK`s Conservative Party, attributes the movement to the "view that the liberal elite has let the world down," and suggested that populist politics could impact which countries countries come out on top.

"It leads to policy dilemma. A policy vacuum. And frankly, it`s one of the reasons that allows China to basically take over the world," Hintze said. 

William Lee, the chief economist at Milken, told Business Insider that populist movements are a popular conversation topic because business people are concerned with how geopolitical risks affect the economy.

Uncertain political climates often lead companies to stall investments, he said, adding that many corporations are concerned that they will invest in the wrong place or in the wrong thing, and become the target of populist protests. 

The companies who choose to invest anyway have looked away from spending money on structures and machinery, Lee said, and are focused instead on investing in things like software, which impact the experience and productivity of the everyday worker in a very visible way.

"The positive part of populism is that it`s pushing CEOs and chief investment officers to rethink the quality of their investments," Lee said, comparing it to the ecological Environmental, Social, and Governance movement. "The populist movement changes what they think is an acceptable form of investment."

SEE ALSO: Goldman Sachs CEO warns `evolutionary’ change in tech transformation will take longer than many think

Join the conversation about this story »

NOW WATCH: Take a look inside a 3 million doomsday condo that can sustain 75 people for 5 years

Japanese Emperor Akihito will abdicate on Tuesday in favor of his elder son, ending a three-decade reign during which he sought to ease the painful memories of World War Two and reach out to ordinary people, including the marginalized in society.
An armed group attacked Libya`s largest oilfield on Monday, but was repelled after clashes with its protection force, while fighting escalated in eastern commander Khalifa Haftar`s effort to capture the capital Tripoli.
Abu Bakr al-Baghdadi appears on video for the first time in five years, reasserting his authority in the wake of lost territory and a major attack in Sri Lanka.
Thousands protested around the Czech Republic on Monday against a justice minister nominee they fear might meddle with a criminal case involving the prime minister.
South Sudan has hired U.S. lobbyists to help it reverse U.S. sanctions and stop the establishment of a court meant to prosecute war crimes, a document showed - a move rights groups said could undermine victims seeking justice.

Kristin Lemkau

  • JPMorgan Chase is trying to find new ways of reaching consumers as they tune out ads, its CMO Kristin Lemkau said.
  • The company is emphasizing creating experiences that come with a value exchange over traditional advertising.
  • Lemkau is using what it knows about customers to create premium and personalized offers for them.
  • Visit Business Insider`s homepage for more stories.

With the rise of ad-blocking and cord-cutting, advertisers have to find new ways of reaching consumers.

For JPMorgan Chase, that`s meant trading traditional ads for experiences of real value like discounts or premium offers, its CMO Kristin Lemkau told Business Insider Alyson Shontell on a MediaLink panel kicking off the Digital Content NewFronts on Monday.

"The consumer wants choice, and they want something that creates value for them," said Lemkau. "They don`t mind the ad, particularly if it doesn`t feel like an ad."

For example, the bank offers a 500 reward if new customers open an account with the bank, and it uses customers` data and spending habits to create personalized prompts. A customer that saves 327 on average in a month may be prompted to use the bank`s autosave feature, for example.

"Suddenly, that doesn`t feel like an ad, it feels like something that`s super helpful — and I`ve then [not only] sold them a savings account, but I`ve done something that actually creates value," Lemkau said. "It`s why search ad units were so valuable to both consumers and to advertisers, because they`ve already declared they`re in the market for that thing."

With digital media being rife with problems like non-human traffic and ads showing up next to controversial videos, many advertisers have reined in their digital budgets or taken their advertising in-house.

JPMorgan Chase for its part has cut the number of sites it advertises on and developed its own algorithm to ensure that its ads don`t end up next to dicey videos on YouTube.

Read More: JPMorgan was so worried about its ads appearing next to sketchy YouTube videos it developed technology to keep that from happening

The company has also brought in its auction-based buying in house, including search and programmatic — an approach that Lemkau said would accelerate across the industry as advertisers try to improve the ad experiences for consumers.

"We will not cross the line of where we feel our consumer`s data is compromised, on any platform for any campaign," she said. "So the natural thing for us to do to have more control and be able to spin the dials over which platform is more effective is to just take more planning and buying in-house."

Digital ads have grown interruptive and annoying because advertisers assumed people would tolerate the same amount of interruption in a digital environment as a TV one, said Lemkau.

"People aren`t going to have the patience for the tax on their time for the interruption," she said.

Join the conversation about this story »

NOW WATCH: The Karlmann King is a 2 million enormous ultra-luxury SUV built upon a Ford F-550

Night King Game of Thrones season six

  • The third episode of the final season of "Game of Thrones" aired on Sunday night, and it was the longest episode of the series at nearly 1.5 hours.
  • The episode was very dark, in the literal sense — it features a massive battle at night in and around Winterfell, which is notoriously dark to begin with.
  • There are a few simple things you can do to prepare your television for the best possible viewing experience.
  • Visit Business Insider`s homepage for more stories.

After eight seasons of buildup, one of the most-anticipated moments in "Game of Thrones" finally happened.

The third episode of the show`s final season featured the Battle for Winterfell: an 82-minute episode centered around a massive nighttime battle.

The show has a proclivity for nighttime scenes lit only by fire, and the episode was one of the darkest in its history. But rather than struggling through the darkness, we`ve got a handful of TV tips to make your viewing experience a bit more easy to see:

SEE ALSO: 15 details you might have missed on the latest episode of `Game of Thrones`

1. The obvious stuff first: Turn down your ambient lighting (or turn it all the way off if possible).

There`s a good reason that all the lights are off when you go to the movie theater: Because it makes the movie easier to see!

The same logic applies here.

Rather than keeping the kitchen light on so you`re able to easily grab snacks, maybe just bring the snacks to the table and shut off your lights for the duration of the episode. 

Read more: How to mute keywords and phrases on Twitter (and avoid spoilers)



2. Turn up the brightness on your screen (to an acceptable level).

It`s not just you: "Game of Thrones" has gotten intentionally darker as the seasons have progressed.

"In season seven, of course, winter is here," Robert McLachlan, a cinematographer, told INSIDER in 2017. "In the past, we had the shutters open out of necessity for the day interior [scenes] in Winterfell or Castle Black or Eastwatch, so that some daylight could make its way in. That was your primary lighting source. There was this rule there that nobody in this world would burn candles in the daytime because they`re a luxury item, they`re far too expensive."

By season eight, the show is at peak darkness — a reflection of the show`s world, where winter has arrived. This was especially true during the massive battle.

One simple solution: Turn up the brightness setting on your television. If nothing else, this will help with details in especially dark scenes.

Beware, of course, of going too crazy with the brightness — you risk completely washing out the image, and that`s no good for anyone. 



3. Turn down the contrast setting on your TV.

Turning up your brightness will only get you so far — it`s contrast, which controls the disparity between white levels and black levels, that will help get you closer to something balanced. After turning up the brightness, head over to the contrast setting and turn it down

Ideally, a balance of the two will help to make the entire scene brighter without getting too washed-out.



See the rest of the story at Business Insider
An armed group attacked Libya`s largest oilfield but was repelled after clashes with its protection force on Monday, while fighting escalated in eastern strongman Khalifa Haftar`s effort to capture the capital, Tripoli.
Peru plans to deport about 50 Venezuelan migrants for concealing that they had criminal records, the interior ministry said on Monday, in the first large expulsion since hundreds of thousands of Venezuelans fled to the Andean nation last year to escape their country`s crippling economic crisis.

satya nadella

Editor`s note: The following is a transcript from Microsoft`s second-quarter earnings call. The translation was provided by Microsoft.

Michael Spencer: Good afternoon and thank you for joining us today. On the call with me are Satya Nadella, chief
executive officer, Amy Hood, chief financial officer, Frank Brod, chief accounting officer, and Carolyn Frantz, deputy general counsel and corporate secretary.

On the Microsoft Investor Relations website, you can find our earnings press release and financial summary slide deck, which is intended to supplement our prepared remarks during today`s call and provides the reconciliation of differences between GAAP and non-GAAP financial measures.

Unless otherwise specified, we will refer to non-GAAP metrics on the call. The non-GAAP financial measures provided should not be considered as a substitute for, or superior to, the measures of financial performance prepared in accordance with GAAP. They are included as additional clarifying items to aid investors in further understanding the company`s second-quarter performance in addition to the impact that these items and events had on the financial results.

All growth comparisons we make on the call today relate to the corresponding period of last year unless otherwise noted. We will also provide growth rates in constant currency, when available, as a framework for assessing how our underlying businesses performed, excluding the effect of foreign currency rate fluctuations. Where growth rates are the same in constant currency, we will refer to the growth rate only.

We will post our prepared remarks to our website immediately following the call until the complete transcript is available. Today`s call is being webcast live and recorded. If you ask a question, it will be included in our live transmission, in the transcript, and in any future use of the recording. You can replay the call and view the transcript on the Microsoft Investor Relations website.

During this call, we will be making forward-looking statements which are predictions, projections, or other statements about future events. These statements are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could materially differ because of factors discussed in today`s earnings press release, in the comments made during this conference call, and in the risk factor section of our Form 10-K, Forms 10-Q, and other reports and filings with the Securities and Exchange Commission. We do not undertake any duty to update any forward-looking statement.

And with that, I`ll turn the call over to Satya.

Satya Nadella: Thank you, Mike, and thanks to everyone for joining on the phone.

We delivered 32.5 billion in revenue this quarter with double digit topline and bottom line growth, driven by strength across all our commercial clouds.

Our commercial cloud revenue grew 48%, anchored by Azure revenue growth of 76%.

These results speak to us picking the right secular trends in large and growing markets – many of which are still in their infancy – as well as focused innovation and execution.

Leading companies in every industry are partnering with us to build their own digital capability to compete and grow.

This is creating a broad opportunity for everyone, including our ecosystem. As one example, the co-sell program we introduced 18 months ago has already generated 8 billion in contracted partner revenue.

Now I`ll briefly highlight our momentum and innovation across our businesses.

Microsoft 365 empowers everyone – enterprises, small businesses, and the more than 2 billion firstline  workers – with an integrated, secure experience that transcends any one device. We are helping every business build out their system of communication and collaboration to drive their productivity as well as their business transformation.

Microsoft Teams is the hub for teamwork and a powerful on-ramp for Microsoft 365, and we are seeing increased usage of OneDrive, SharePoint, Yammer and the entire Office suite of applications. Teams is the only enterprise-grade solution that brings together messaging, meetings, video conferencing, as well as document collaboration,and as of this quarter, enhanced voice capabilities like group call forwarding, delegation and location-based routing – are all being brought into Teams.

We are seeing rapid adoption of Teams with more than 420,000 organizations of all sizes and 89 of the Fortune 100 using Teams – including customers like Pfizer which chose Teams as the collaboration platform for their 115,000 employees. And we are expanding into new and underpenetrated markets.

This quarter we introduced new capabilities to empower firstline workers in the service and taskoriented roles to communicate and collaborate more effectively on-the-go, with mobile schedule management, location sharing, as well as the ability to easily record and share secure audio messages.

We are expanding our opportunity in Education with Microsoft 365, innovating in hardware and software to improve learning outcomes, from more collaborative classrooms with Teams, to personalized learning tools in OneNote, to social learning with Flipgrid, to affordable, easy-to-manage, Windows 10 devices.

Cybersecurity is a central challenge and Microsoft is leading the way, helping all organizations operate in what is known in the industry as a "zero trust" environment. It all starts with Azure Active Directory and the deep work we are doing with Microsoft Threat Protection to provide an integrated solution for our customers that extends across identities, device endpoints, email, information, cloud applications and infrastructure. And, this quarter we introduced new advanced capabilities for identity and threat protection, and for information protection and compliance. Our comprehensive approach to security and compliance is another reason why customers are adopting Microsoft 365. 

Customers from Neiman Marcus, to Brooks Running, to global biopharmaceutical leader Sanofi all chose our solutions.

Surface had its biggest quarter ever this holiday – delivering strong double digit growth in both consumer and commercial. We continue to innovate and expand our family of devices, setting the bar for the industry with the newest Surface Pro, Surface Laptop and Surface Go.

More broadly, Windows 10 continues to gain traction in the enterprise as the most secure and productive operating system. And at CES, our OEM partners showcased always-connected Windows 10 PCs that deliver breakthrough levels of performance to enable powerful new scenarios, like immersive gaming.

Moving to business applications and LinkedIn.

Dynamics 365 grew 51% this quarter as we win customers with our differentiated approach to systems of record and systems of engagement by making them more modular, extensible and AI-driven.

Increasingly, business process automation includes digitizing physical spaces, activities and interactions.

Dynamics 365, along with advances in Azure IoT, AI and Mixed Reality, are leading the way for organizations to create these new Systems of Observation & Systems of Intelligence that drive end-toend business processes, and bridge the online and offline worlds. For example, we now have the capability for customers to manage inventory in real time from the shelf, to the warehouse, to the farm.

But we`re not stopping there.

Our Power Platform – spanning Power BI, PowerApps and Flow – enables anyone in an organization to start building an intelligent app or workflow where none exists. It is the only solution of its kind in the industry – bringing together no-code/low code app development, robotic process automation, and selfservice analytics into a single, comprehensive platform. And it enables extensibility across Microsoft 365 and Dynamics 365 as well as the leading third-party SaaS business applications.

With Power Platform, Microsoft is fundamentally democratizing business processes – empowering everyone to make smarter, faster decisions. I`m energized about the tremendous opportunity in this space.

Already, Centrica is relying on Power BI, Power Apps, and Flow, along with Dynamics 365, to transform scheduling and dispatch for its firstline workforce in the United Kingdom.

Virgin Group is using Power Apps and Dynamics 365 to generate a single view of its passengers, surfacing insights to improve customer service and increase operational efficiency.

And, in Italy, the postal service is using Dynamics 365 to jump-start the digital transformation of
thousands of post offices across the country.

Moving to LinkedIn.

We continue to generate strong revenue growth across all businesses, with sessions growth of 30% year-over-year, fueled by record levels of engagement in the feed and content shared across the platform. We also saw record job postings again this quarter.

We introduced new brand and community-building tools for Marketers with LinkedIn Pages, making it easier for organizations of all sizes to foster stronger connections with LinkedIn`s 610 million members. Finally, Glint broadens our market opportunity with its industry-leading employee engagement platform. At a time when competing for talent and skills development is a priority for every leader, the combination of LinkedIn Talent Solutions, Talent Insights, LinkedIn Learning, and now Glint helps every business attract, retain and develop the best talent in an increasingly competitive jobs marketplace.

Now turning to Azure.

Azure is the only hyperscale cloud with a consistent computing stack that extends from the datacenter to the edge – and customers across every industry recognize this architectural advantage.

In retail, Azure was front and center at NRF.

Kroger is partnering with us to redefine customer experience in stores and provide employees with AIdriven insights, while The Gap chose our cloud to accelerate its digital transformation. And, just last week, Albertsons chose Azure as its preferred cloud.

In financial services, Mastercard is partnering with us on a new, more secure way to verify digital identities.

BlackRock is applying the power of the Microsoft cloud to reimagine retirement planning. And UBS is using Azure to increase agility across the organization while meeting the highest bar of compliance and security.

In healthcare, Walgreens Boots Alliance chose Azure to put people at the center of their health and wellness, with digital solutions to improve healthcare outcomes and lower costs. In addition, they will roll out Microsoft 365 to more than 380,000 employees and stores globally.

We are accelerating our innovation in emerging workloads like IoT and Edge AI. At CES, our partners showcased how Azure IoT and Azure AI are enabling them to build new connected devices and experiences that span the cloud and edge – from connected homes to cars to smart cities. Just this month, Starbucks chose Azure Sphere to secure its business-critical edge devices in stores.

Developers will increasingly drive and influence business processes and functions across every organization – and we are committed to giving developers the tools they need to be productive on any platform.

More than 12 million developers around the world use Visual Studio to build applications, and new features enable them to collaborate in real-time and spend more time driving innovation.

We closed our acquisition of GitHub this quarter, enabling us to bring our tools and services to new audiences while enabling GitHub to grow and retain its developer-first ethos.

GitHub has more than 31 million developer accounts and recently surpassed 100 million code repositories – a major milestone. Development teams at more than half of the Fortune 50 do their work in GitHub Enterprise. This month, we announced significant updates to make GitHub accessible to even more developers, introducing unlimited private repoes, as well as a new, simpler, unified enterprise offering, already available through our Microsoft global salesforce. And we`re not stopping there.

Just last week, we announced our acquisition of Citus Data – the leading provider of Postgres SQL – enhancing our overall data platform differentiation and building on our investment on Azure, making it the most comprehensive cloud for open source and proprietary data workloads at any scale.

Now I`ll turn to gaming.

We continue to pursue our expansive opportunity to transform how games are distributed, played and viewed. Our investments in content, community and cloud services across every endpoint drove both record user engagement and record average revenue per user, and contributed to our largest gaming revenue quarter ever, driven by software and services.

We acquired two new studios this quarter, bringing the total to 13, and more than doubling our firstparty content capacity in the past six months.

Xbox Live monthly active users reached a record 64 million, with the highest number of mobile and PC users to-date. Xbox Game Pass subscribers and Mixer engagement also hit new all-time highs. And Minecraft, which continues to be one of the most popular and durable gaming franchises in the industry, delivered record revenue as we expanded into new platforms, geographies and segments like Education.

PlayFab surpassed one billion player accounts this quarter, and xCloud will be in public trials later this year as we make progress on our ambition to build a world-class gaming platform spanning mobile, PC and console.

In closing, our accelerating customer momentum is driven by our deep and growing partnerships with
leading companies, and differentiated innovation across our portfolio.

Every company is becoming a digital company and they are looking for a trusted partner to help them
build tech intensity. Microsoft is that partner.

With that, now I`ll hand it over to Amy who will cover our financial results in detail and share our
outlook.

I look forward to rejoining you after for questions.

Amy Hood: Thank you, Satya, and good afternoon everyone.

First, as a reminder, my comments across our results and outlook include the impact from GitHub, inclusive of purchase accounting, integration, and transaction related expenses.

This quarter, revenue was 32.5 billion, up 12% and 13% in constant currency. Gross margin dollars increased 12%. Operating income increased 18%. And earnings per share was 1.10, increasing 15% and 14% in constant currency, when adjusting for the net charges related to TCJA.

Strong execution and continued customer demand for our hybrid cloud offerings drove another quarter of double-digit top and bottom line growth. We continued to benefit from favorable secular trends and  IT spending conditions. From a geographic perspective, our performance was in line with macroeconomic trends, with strength across the US, Western Europe and the UK, partially offset by weaker performance in Central and Eastern Europe and the Middle East and Africa.

In our commercial business, annuity mix grew 3 points year over year to 89%. Commercial unearned revenue was 25.3 billion, growing 20%, slightly above expectations. And commercial bookings were strong, growing 18% and 22% in constant currency, driven by solid renewal execution and an increase in the number of larger, longer-term Azure contracts. As a reminder, strong performance in larger, longterm Azure contracts, Azure consumption overages, and pay as you go contracts will drive bookings growth and in-period revenue but will have a limited impact on unearned revenue.

Commercial cloud revenue was 9.0 billion, growing 48% and 47% in constant currency. Commercial cloud gross margin percentage increased 5 points year over year to 62%, driven by significant improvement in Azure gross margin.

Our company gross margin percentage was 62%, flat year over year, as improving cloud margins were offset by sales mix shift to Commercial Cloud and Surface hardware.

The US dollar was a bit stronger than anticipated, which resulted in a slightly greater impact to our results. FX reduced revenue, COGS, and operating expense growth by less than a point.

Operating expenses grew 7%, slightly lower than expectations as some marketing spend shifted to Q3.

We again expanded operating margins as a result of focused investments, solid execution, and improving gross margins in key product areas.

Now to segment results.

Revenue from Productivity and Business Processes was 10.1 billion, increasing 13%, driven by Office 365 commercial, LinkedIn, and Dynamics 365.

Office commercial revenue grew 11%. Office 365 commercial revenue increased 34% and 33% in constant currency, driven by seat growth of 27% and ARPU expansion from continued customer migration to higher value E3 and E5 offerings. We saw installed base growth across all workloads and customer segments.

Office consumer revenue grew 1% and 2% in constant currency, below our expectation. As discussed on our last earnings call, Q2 revenue growth was impacted by channel inventories normalizing after the pre-launch builds in Q1, but was further negatively impacted by a smaller than expected consumer PC market and execution challenges during the quarter. Office 365 consumer subscribers grew to 33.3 million, a sequential slowdown primarily due to changes made in how Office 365 is sold in Japan.

Our Dynamics business grew 17%, driven by Dynamics 365 revenue growth of 51% and 50% in constant currency.

This quarter, more than 9 out of every 10 new Dynamics CRM customers chose our cloud offering.

LinkedIn revenue increased 29% and 30% in constant currency, with continued strong execution across all businesses. LinkedIn sessions grew 30% as engagement once again reached record levels.

Segment gross margin dollars increased 11% and gross margin percentage declined slightly year over year as increased cloud mix offset the benefit from improvements in LinkedIn and Office 365 margins.

Operating expenses increased 3% and 4% in constant currency as we continued to invest in LinkedIn and cloud engineering. Operating income increased 20% and 19% in constant currency.

Next, the Intelligent Cloud segment, which now includes GitHub. Revenue was 9.4 billion, increasing 20% and 21% in constant currency, ahead of expectations, driven by continued strength in our hybrid solutions. Server products and cloud services revenue increased 24%. Azure revenue increased 76%, with strong growth from both the consumption and per-user based businesses. In our on-premises server business, continued customer demand for flexible hybrid solutions and our premium offerings drove growth of 3% and 4% in constant currency.

Enterprise Services revenue increased 6% and 7% in constant currency, driven by growth in Premier Support Services and Microsoft Consulting Services.

Segment gross margin dollars increased 20%. Gross margin percentage was relatively unchanged as revenue mix to Azure IaaS and PaaS was offset by material improvement in the Azure gross margin percentage.

Operating expenses increased 26% with continued investment in cloud and AI engineering and as well as commercial sales capacity, and the addition of GitHub. Operating income grew 16% and 15% in constant currency.

Now to the results from the More Personal Computing segment. Revenue was 13.0 billion, increasing 7%. Results in our Windows OEM business were lower than expected, partially offset by strong Surface results.

In Windows, the overall PC market was smaller than we expected primarily due to the timing of chip supply to our OEM partners which constrained an otherwise healthy PC ecosystem and negatively impacted both OEM Pro and Non-Pro revenue growth. Windows OEM Pro revenue declined 2%, roughly in-line with the commercial PC market. OEM non-Pro revenue declined 11%, below the market with continued pressure in the entry level category.

Inventory levels ended the quarter below the normal range.

Windows commercial products and cloud services grew 13% and 14% in constant currency, with continued customer adoption of our premium offerings. Windows 10 deployments across new and existing devices remained strong.

Gaming revenue grew 8% and 9% in constant currency. Xbox software and services revenue increased 31% and 32% in constant currency, primarily driven by continued strength from a third-party title.

Additionally, strong subscriber growth across Xbox Live and Game Pass helped to offset lower than expected performance from other third-party titles on the platform. Xbox hardware performed better than expected, but declined year over year given the holiday launch of the Xbox One X a year ago.

In Surface, revenue increased 39% and 41% in constant currency, to nearly 1.9 billion, ahead of our expectations, driven by strong growth across both our consumer and commercial segments.

Search revenue ex-TAC increased 14% driven by Bing rate growth and increased volume in US and international markets.

Segment gross margin dollars increased 6% and 7% in constant currency and gross margin percentage decreased due to sales mix to our lower margin Surface and Gaming businesses.

Operating expenses declined 4%. As a result, operating income increased 18% and 19% in constant
currency.

Now back to total company results.

Capital expenditures including finance leases were down sequentially to 3.9 billion, lower than originally planned, mainly due to quarter to quarter variability in the timing of cloud infrastructure buildout. Cash paid for property, plant, and equipment was 3.7 billion.

Cash flow from operations increased 13% year over year driven by strong cloud billings and collections.

Free cash flow was 5.2 billion and decreased 2% year over year, reflecting the timing of higher cash payments for property, plant, and equipment.

Other income was 127 million, higher than anticipated, driven by interest income and investment gains, partially offset by interest expense and net losses on foreign currency remeasurement.

Our non-GAAP effective tax rate was slightly above 17%, in line with expectations.

And finally, we returned 9.6 billion to shareholders through share repurchases and dividends, an increase of 91%. Our Q2 share repurchase was 6.1 billion, higher than our normal quarterly pace, and aligned to our commitment of incremental buyback to fully offset stock consideration issued in the GitHub transaction by the end of the fiscal year.
Now let`s move to our outlook.

For Q3, first FX. With the stronger US dollar, and assuming the current rates remain stable, we now expect FX to decrease revenue and operating expenses growth by approximately 2 points and decrease COGS growth by approximately 1 point. With the segments, we anticipate about 2 points of negative FX impact on revenue growth in Productivity and Business Processes and Intelligent Cloud, and 1 point in More Personal Computing.

Second, continued strong customer demand, healthy bookings growth, and increasing revenue annuity mix should drive another solid quarter in our commercial business. Commercial unearned revenue is expected to decline approximately 2% to 3%, in line sequentially with historic trends.

We expect commercial cloud gross margin percentage to continue to improve year over year as material improvement in Azure gross margin will again be partially offset by the mix of revenue towards Azure consumption-based services.

Third, capex. We expect a sequential dollar increase in capital expenditures as we continue to invest to support increasing demand.

Now to segment guidance.

In Productivity and Business Processes, we expect revenue between 9.9 and 10.1 billion driven by double digit growth in Office commercial and Dynamics as well as healthy LinkedIn growth on a strong prior year comparable. We expect Office consumer revenue growth to continue to be in the low single digits as growth in Office 365 will be partially offset by the continuation of the consumer PC market headwinds.

For Intelligent Cloud, we expect revenue between 9.15 and 9.35 billion, with our hybrid demand continuing to drive strong growth in server products and cloud services. Azure growth will continue to reflect the balance between strong growth in our consumption-based business and moderating growth in our per-user business.

In More Personal Computing, we expect revenue between 10.35 and 10.65 billion with a shift in revenue mix to our Surface and Gaming businesses.

In Windows, overall OEM revenue growth should be in the low single digits as we anticipate continued market impact from constrained chip supply in Q3.

In Surface, continued momentum from Surface Pro 6, Surface Laptop 2, and Surface Go will drive another strong quarter of over 20% growth for Surface.

In Search ex-TAC, we expect revenue growth similar to Q2.

In Gaming, we expect revenue growth to be slightly higher than last quarter. Sales mix will shift to software and services, where we expect healthy growth.

Now, back to overall company guidance.

We expect COGS of 10.35 to 10.55 billion and operating expenses of 10.1 to 10.2 billion, inclusive of marketing spend that moved from Q2 to Q3.

Other income and expense should be approximately 50 million as interest income is partially offset by
interest expense.

And finally, we expect our Q3 effective tax rate to be in line with the full year rate of 17%.

Now a few comments on our outlook for Q4 and the full fiscal year, which are unchanged from October.

First on FX. In Q4, assuming rates remain stable, we expect FX to decrease revenue growth by approximately 2 points and COGS and operating expenses growth by approximately 1 point.

Second, in Q4, we expect continued strong performance in our commercial cloud business, but as a reminder, we also have several challenging comparisons from the prior year, specifically in on-premises server, LinkedIn, Windows OEM, and the strength of a third-party title in Gaming.

In terms of operating expenses, we continue to expect full year growth of roughly 8%. We will continue to invest in strategic growth areas like Azure, AI, GitHub, Dynamics, Power Platform, LinkedIn, Teams, and gaming content given our significant growth opportunities, competitive advantage, and growing momentum.

We still expect full year operating margin to be up slightly year over year, inclusive of the full GAAP impact of GitHub.

For capex, we continue to expect the growth rate for the year to moderate even as we meet the high demand for our cloud services.

We remain committed to an incremental share buyback, beyond the normal quarterly pace, that will fully offset stock consideration issued in the GitHub transaction by the end of this fiscal year.

And finally, we still expect the full year effective tax rate to be roughly 17% with quarterly variability.

With that, Mike, let`s go to Q&A.

Michael Spencer: Thanks, Amy.

We`ll now move over to Q&A. Operator, can you please repeat your instructions.
(Operator Direction.)

Keith Weiss, Morgan Stanley: I just wanted to thank you guys for taking the question, and nice quarter. A question on Azure, and it`s a two-parter, one part for Satya and one for Amy.

Satya, there`s been a lot of press releases of you up on stage with CEOs from guys like Albertsons, Walgreens, talking about these large strategic deals that you`re doing with these companies. Can you help us understand sort of how do these large strategic deals translate into sort of the services being used on Azure changing? Is there a mix shift in the types of services that are supporting these large digital transformations that we should be sort of aware of on a going forward basis?

And to Amy, one of the sort of big investor debates is a lot of suppliers into the big cloud vendors like yourself are talking about weaker shipments into this large. But you guys have seen very stable growth. I mean Azure growth was dead solid from Q1 to Q2. Can you help us understand how the sort of capital intensity of some of these cloud businesses has been changing over time?

Satya Nadella: Sure. First of all, thank you, Keith, for the question.

It is very true that at this point we are seeing these very large digital transformational efforts and projects that we are partnered with, and they span, quite frankly, all the industries. I think in the last quarter you saw in healthcare and retail with financial services. In fact, I sort of internally think of them as what our relationships with our traditional OEM partners in the PC ecosystem were.

At this point, some of the partnerships we have with customers are of the same magnitude. And that just speaks to, I think, what`s happening in the economy, which is every company is becoming a digital company and essentially what used to be COGS and operating expense is all going digital.

From a mix of services, it starts always with I would say infrastructure. So this is the edge and the cloud infrastructure being used as compute. In fact, you could say the measure of a company going digital is the amount of compute they use. So that`s the base.

Then on top of that, of course, all this compute means it`s being used with data. So the data estate, one of the largest things that happens is people consolidate the data that they have and so that they can reason over it and that`s where things like AI Services all get used.

So we definitely see that path where they`re adopting the layers of Azure, but it doesn`t stop in Azure.

In fact, if you take Walgreens Boots Alliance with Microsoft 365 as well as Azure. In many cases, it`s  Dynamics 365, any IoT project on Azure leads to a Dynamics field service project in most instances. So we`re seeing the breadth and depth of our cloud offering, which is what we have really architected, to have real synergies in the context of what our customers want to achieve. And that`s what we`re seeing.

And one comment before I throw it over to Amy, even on our own demand for it we don`t see any change. In fact, it`s very healthy and we think that it will continue to be healthy. And if anything, at our scale, as you can imagine, we are becoming much more efficient in how we use software to utilize the capacity we have. So we have significant gains in utilization across our estate.

So with that I`ll leave it to Amy.

Amy Hood: And, Keith, the thing I would add in addition to Satya`s comment about investing and investing materially to make these improvements in performance and utilization, we have always had and seen, as you all have gotten a bit used to, it can be a bit lumpy quarter to quarter. And so we expect a sequential growth into Q3, which is really just some movement that happens from time to time. Our guidance really in terms of overall capital spend is unchanged from 90 days ago even if the timing of that can move month to month.

Keith Weiss: Excellent. That`s very helpful. Thank you, guys.

Michael Spencer: Thanks, Keith.

Operator, we`ll take next question, please.

(Operator Direction.)

Karl Keirstead, Deutsche Bank: Thanks.

Amy, I just wanted to ask you a question about your March quarter guidance. The total looks terrific.

The only area that might decelerate a little bit appears to be the Intelligent Cloud segment where 17 percent I think at the midpoint it implies still amazing but down from 20-plus percent in the last three quarters. So I`m wondering if you could just focus on that for a second and help us understand what some of the variables inside that Intelligent Cloud business are that might be impacting next quarter growth?

Thank you.

Amy Hood: Thanks, Karl.

The first place to start is obviously FX. We`ve got a 2-point headwind on that range of 16 to 18. So if you think about that and move your midpoint up to 19, and then I think within that guidance there`s a reasonable amount of confidence that the server products and services KPI will remain quite healthy.

Karl Keirstead: Okay. Thank you, Amy.

Michael Spencer: Thanks, Karl.

We`ll take the next question, please.

(Operator Direction.)

Mark Moerdler, Bernstein Research: Thank you. I have a question for Satya and then for Amy, if you don`t mind. Satya, in the different documents related to the earnings this quarter you have on product launches, et cetera, there`s a discussion in there on the Microsoft launch of the Quantum Development Kit. Can you give us a bit of color on how you`re thinking about quantum computing today, how soon the opportunity, where it is in the maturation?

And then I have a follow-up for Amy.

Satya Nadella: Sure. Thanks, Mark.

The way we think about our overall investment, I think of it as a systems investment, because at the scale at which we operate the intelligent cloud and the intelligent edge infrastructure, which you all track as Azure, you`ve got to remember is the core platform that`s powering everything from our gaming ambitions to what we`re doing with Microsoft 365 to what we`re doing with Dynamics 365 and, of course, our third-party business in Azure.

So that`s the core platform. And now when you think about the scale at which we operate, it is very important for us to make sure that every new breakthrough that happens in the system architecture that can improve efficiencies in what is distributed computing is something that we stay on the forefront of it.

So that`s why we have a very long-term view on quantum and the things that we did even in this last quarter is take things like the quantum simulator stuff and bring it to Azure. In fact, we`re seeing very good adoption in scientific labs in universities and some pharma companies and others who are looking at really building their quantum algorithmic prowess long before the quantum computer is real so that they`re ready to be able to take advantage of that computing resource.

So that`s how we look at it, but you`ve got to remember that before quantum there are many byproducts of a quantum effort that have significant implications on how we get more competitive, efficient in terms of providing computing to the world. So that`s one of the reasons why you hear us talk about quantum as a long-term goal, but you can full expect us to take a lot of learnings, advances in that roadmap and bring them to market earlier.

Mark Moerdler: Thank you, I really appreciate that.

Amy, you gave a lot of color this quarter, but in the quarter, there was overall transactional weakness.

Can you give us a little more a color, is there something structural driving it, U.S. Government, China weakness, was there just simply less contracts up for renewal or is it the cloud? Any additional data would be helpful.

Thank you.

Amy Hood: Thanks, Mark, for the question.

The only transactional weakness I felt in the quarter at all was what we covered, which was the OEM impact from the chip supply, which was about a point and a half of growth on MPC. And the Office Consumer impact, which was secondary impact of the PC environment plus some execution challenges we had that I feel really good that we`ve gotten to the root of and will get handled in H2.

Outside of that, our transactional execution was really precisely as we expected. Office Commercial actually had a pretty reasonable quarter given some of the impact we had in Q1, a couple of points of impact of extra growth that we talked about. And the product and services KPI on-prem in server was also quite good when we think about the balance and what that represents for hybrid demand. We continue to see good demand on data center modernization as well as some of the premium SKUs.

Mark Moerdler: Perfect. Thank you. I much appreciate it and congrats.

Michael Spencer: Thanks, Mark.

Operator, we`ll take next question, please.

(Operator Direction.)

Phillip Winslow, Wells Fargo: Hi, guys. Thanks for taking my question and grats on a great quarter.

I just wanted to focus in on Windows. Amy, I think you got into low single-digit growth in Windows OEM revenue for Q3, and just wondering if you could sort of help us bridge that, because you also talk about inventory levels of Windows being low in the OEMs as well as a mix. So maybe kind of help us bridge a gap between your comments about maybe continued storage is a component of the revenue growth.

And then the other side of Windows, the commercial, obviously has been super strong, but we`re starting to lapse. There`s some pretty big growth numbers in Q3 and Q4 last year. I know obviously there`s some account change with 606. Maybe you could give us some color there.

So I guess one on the OEM side, and then two on the commercial side.

Thanks.

Amy Hood: Great. Thank you.

On the OEM side, the way to think about those comments is we do expect inventory levels to likely remain low as we exit the next quarter as well. So think about their having, and we do expect, chip supply to remain constrained. I don`t expect to see any impact from change in inventory levels through the next quarter. So I would sort of remove that as one of the mechanisms you`re thinking about on overall OEM demand. I do think what we`ll see in Q3 is, we`re expecting a little better performance in the Pro side of the market in terms of seeing growth there and that`s probably helping a little bit.

To your second question on Windows Commercial overall, our real investment, and you`re right we are starting to reach some tougher comparables, but a lot of that comparability which you referenced is due a little of how it`s licensed, which is a lot of this is new and gets recognized more up-front in quarter.

That`s going to continue to have some lumpiness still as we go over the years. As that business continues to grow it will get less of that impact.

The primary driver in terms of billings is how I tend to think about that has been pretty consistent. It`s been double-digit consistent growth. It tends to look a lot like our Office 365 motion. It`s sold with Microsoft 365. It`s about the selling motion of E3 and E5 that we talk about. If you can almost take out that 606 impact, the billings seem to almost mirror the Microsoft 365 SKUs we sell.

Phillip Winslow: Awesome. Thanks a lot, appreciate it.

Michael Spencer: Thanks, Phil.

We`ll take the next question, please.

(Operator Direction.)

Jennifer Lowe, UBS: Great. Thank you.

I appreciate getting the sort of visibility you have into the, as someone earlier alluded to, transactional businesses. It sounds like you feel pretty good or at least stable about the PC outlook for the remainder of this year. But given that Windows is a pretty material driver of profitability at Microsoft, if we do start to see a more protracted decline in PC unit sales, how do you think about your investments going out through the remainder of this calendar year? Are there opportunities to sort of flex down the cost structure at this point to preserve profitability and margins or should we assume that much of the investments happening right now are really tied to the Commercial Cloud and some of the lower margin but higher opportunity businesses and maybe there isn`t so much of an offset. How should we think about contingency planning if we do see a weak or an extended weakening in the global economic climate?

Satya Nadella: Let me start, and Amy you can add to it.

First of all, I would say the opportunity for our shareholders when they think about Microsoft has never been better. When I look at every business becoming a digital business and then take that opportunity and map that to our capability, we have the broadest platform of anyone in the tech sector to really help every customer in every country become that digital business. And we have the business model that aligns with them and their interest and the trust.
And so, therefore, from a secular perspective, we`re all in on making sure that we invest in our Commercial Cloud as well as our investments in things like gaming and going after the opportunity that is there in front of us. And you even think about Microsoft 365, the value proposition of Microsoft 365 transcends Windows and Office on Windows. We think about the relevance of our applications across all device sockets. We think about the security, identity management, information protection, and all that value across all device sockets.

So, therefore, I feel very, very good about the product investments and the go to market investments we are making to really help our shareholders realize the growth potential that`s available in what is going to be an increasingly digital world.

And I`ll let Amy answer.

Amy Hood: Let me just add a little bit, Jennifer, when it comes to really your question about OEM. You know, we know that the signals we get from especially our commercial customers is that there is a healthy demand for the value that exists in Windows 10. We`re seeing it in terms of deployments on new and existing devices. And the security and manageability value prop that comes with a modern device, and the experiences that employers want their employees to have and be able to take advantage of along with some of the end of support deadlines that we have talked about, there is still an opportunity for us to remain focused on and execute on through this calendar year. And I still feel quite good about that, including the signals we`re getting in the market.

Jennifer Lowe: Great. Thank you.

Michael Spencer: Thanks, Jen.

Operator, we`ll take the next question, please.

(Operator Direction.)

Raimo Lenschow, Barclays: Thanks for taking my question.

I wanted to focus on the data and database side of your business. We saw the acquisition this quarter of a Postgres company. If you think about the ecosystem around the world, a lot of the cloud guys are talking a lot about database. Can you kind of maybe talk a little bit of what you see around Cosmos, the whole database offering that you have from what you see in terms of client adoption there?

Thank you.

Satya Nadella: Yeah. We feel very, very good about the data platform and the portfolio we have, whether it`s on the relational side with obviously SQL and now Postgres support. And then our Cosmos DB has become the leading multi-model, multi-region database. And so therefore I feel very, very good.

As I said even earlier, whenever these customer digital transformation projects start, they start by really getting their data into shape. And what that means is you bring all the data in its native format. You need the full comprehensive platform, and then the ability to be able to do things like AI and analytics on top of all of this data. So our data platform growth as well as competitiveness is very good and increasing. And we`re the only provider still who can do this in a hybrid way. That is, the consistency between what happens at the edge to the cloud when it comes to data tier becomes even more important as edge scenarios become very, very real. So therefore I feel very good about our data story.

Citus, which is the company we just bought for the Postgres capability is something that we`re very excited about.

Raimo Lenschow: Thank you.

Michael Spencer: Thanks, Raimo.

We`ll take the next question, please, Operator.

(Operator Direction.)

Walter Pritchard, Citi: Hi, thanks.

A question on Azure and growth numbers this quarter were very strong. I`m wondering if you could talk about, what`s your visibility into the growth in that business? You know, a lot of that comes from enterprise agreements and commitments customers are making, some of that`s on sort of credits that they have to consume. I`m not sure if you`re willing to give us sort of a gross kind of trajectory as you look out forward, but I think there`s a lot of investor interest in terms of how much visibility on your perspective.

Amy Hood: Maybe I`ll start, Satya.

In terms of the Azure growth, most of the Azure growth is really driven by consumption. So this is about getting projects started, making those projects successful, making sure customers feel the value and get the value of their investment. And increasingly that`s why we`ve been talking a bit about the form of these contracts changing. Larger commitments being made that land in bookings but not in unearned.

So it`s a bit different mechanism that you`d think about having in our standard EA where it goes to the balance sheet and gets earned off. These are contracts that unless it is used and deployed and a customer gets value from it does not land into the P&L. And so the part that looks a little bit more EA like is the part we`ve talked about on a per user basis, that`s the things they`re going to deploy, whether that`s EMS is the best example.

And so those have the characteristic you talk about, which is that it really comes from the EA and the recognition of more predictable. But on the IaaS and PaaS layer, that`s about our execution each quarter and especially making an impact.

The only other way that Azure number is to think about it is, when we`ve talked about the Azure hybrid benefits that exist, those show up actually in the on-prem number, right, even if they ultimately get used on the Azure side. So there actually is some Azure benefit in revenue ultimately that shows "as onprem".

Michael Spencer: Great, thanks, Walter.

We`ll go to the next question, please.

(Operator Direction.)

Mark Murphy, JPMorgan: Yes. Thank you very much.

Satya, in the last couple of quarters you have announced a number of these large multi-year Azure wins with companies including Walmart and Albertsons and Walgreens, as Keith mentioned earlier. I`m just curious whether you`re sensing an amplified tailwind there due to Amazon`s ambitions to actually compete with grocers and retailers and healthcare providers and other industries?

And then, Amy, I am assuming that those wins are captured by this robustness that we`re seeing in the Commercial bookings growth which was up 22 percent. But I guess I don`t understand if they`re fully captured, if this is a consumption-based structure, or are we only seeing a portion of those bookings if we look in the unearned revenue and in the KPI?

Satya Nadella: Okay, I`ll start.

The first thing is to -- we need to have product truth and product competitiveness and capability to, first of all, play, and that`s where I`ll start. We have a very, very good compelling platform across our Commercial Cloud. That`s what`s really leading us to be able to do these types of partnerships that you referenced.

It`s clear that we also have a fantastic alignment of our business model with the interests of our customers. In other words, we want to make sure that we are, in fact, making our customers fully capability digital companies in their own right, whether they`re in retail, whether they`re in oil and gas, whether they`re in healthcare, because that`s really what`s in our long-term interest, which is to ensure that they have full digital capability, and then they use the subscriptions and the consumption capabilities of our cloud.

And, of course, that means that we have a trusted relationship, which is a competitive advantage in a world where some of our competitors have more complex business models, where in some cases they give them platforms, in other cases where they compete with them or tax them, that`s definitely  something that I`m sure our customers pay attention to. But we are very focused on making sure that we have the right product that`s competitive in the marketplace, and then our business model that`s long-term aligned with the interests of our customers, and we`ll stay focused on it.

Amy Hood: And to your second question, most of these larger contracts are showing up in that Commercial bookings number, and we reference that. And we say the larger, longer-term contracts that is where they show up. Very little shows up in unearned. And that`s a distinction that we`re starting to see in many of these Azure contracts. It will as it gets used go straight to that Azure revenue growth number on the P&L.

Mark Murphy: Thank you.

Michael Spencer: Thanks, Mark.

Operator, we`ll take the next question, please.

(Operator Direction.)

Brad Reback, Stifel: Great. Thanks very much.

Satya, you talked about Microsoft 365 being the new operating system, and I know you talked a bunch about that today. But as you think about going after the front-line worker, the people you could not get to previously, how should we think about the TAM expansion from that from a seat standpoint?

Thanks.

Satya Nadella: A good example of the first-line opportunity was something that you could have seen at NRF this January. We launched, for example, Teams for First-Line Workers, which had things like shift worker capabilities, the secure messaging. One of the challenges in retail and in many other industries is what`s that messaging tool that has actually got the security framework that they expect of any other enterprise tool as opposed to using one of these consumer messaging tools which then all the liability is with the enterprise. So that`s the opportunity we see, for all fronts, whether it`s in manufacturing, whether it`s in retail, whether it`s in healthcare. So that`s the TAM expansion. So in other words, it can be start with Teams. It can start with some of our devices in the first-line worker.

For example, one of the things that we see the most traction for HoloLens is with first-line workers, people in manufacturing, in field services, where they were never issued a standard laptop, or even a phone, are being issued a HoloLens as their first computing device and that`s just because of the productivity it drives. So those are the kinds of TAM expansion we see across Microsoft 365.

Brad Reback: Great, thanks very much.

MICHAEL SPENCER: Thanks, Brad.

Operator, we`ll take our last question now please.

(Operator direction.)

Alex Zukin, Piper Jaffray: Hey, guys, thanks for taking my question and congrats on the quarter. Satya, you guys reorganized the sales and customer service organization about 18 months ago quite substantially and you`re now seeing the benefits, both around much larger deals and broader deals that we discussed on this call for your products across the portfolio.

I wanted to ask as the deal complexity increases, are you seeing any impact to your sales cycles as a result and is there any impact to your sales cycle, maybe not from that, but from kind of the macro volatility that we`ve seen in the headlines.

Satya Nadella: I mean overall a lot of our transformation, whether it`s on the engineering side or on the marketing side or on the sales side have all been driven by the opportunity we see with the broad platform capabilities we have, across all of our commercial cloud, whether it`s Azure or Dynamics 365, or Microsoft 365. So it is true that the deals are much broader, deeper, the relationships with the customers that we are now signed up with span a lot more of our capability and also drives a lot more of their own ambition.

So for sure the sales cycles are different, but at the same time you`ve got to remember, at Microsoft we do have a lot of different business that we do with the customers, which may include some things like refreshes of their on-premise infrastructure, all the way to some very high ambition digital transformation projects.

So I would say we are well equipped to deal with that complexity and the variability of what our customers want us to be helping them with and that`s where a lot of the transformation we have done internally is helping us accelerate our cloud business.

Amy Hood: And I think the way we`ve seen this in the field is, and our sales organization, has been not unlike some of these Dynamics transactions, or the Power Platform transactions that require a fundamental understanding of business process and the changes you`re trying to implement. Those do naturally have longer sales cycles. Azure has many of those same attributes at the higher end of the complexity and digital transformation Satya was talking about. And in these very large transactions, many of which we`ve been signing recently, where you`ll see some of that volatility would be in bookings. But I think in general the goal is to have and continue to build on that business, but certainly that would be where the quote/unquote volatility would show up.

Michael Spencer: Great, well, thanks, Alex.

That wraps up the Q&A portion of today`s earnings call. Thank you for joining us. And we look forward
to speaking with all of you soon.

Satya Nadella: Thank you all.

Amy Hood: Thank you.

Join the conversation about this story »

NOW WATCH: What happens to your body when you drink too much coffee

Chromecast ultra

Depending on which model you buy, you can get a Google Chromecast device for as little as 15, or you can spend upwards of 69 for the latest models which boast Ultra 4K streaming quality capabilities.

But no matter which Chromecast you buy, that initial purchase price is the only cash you`ll pay out: using a Chromecast requires no subscription and has no fees.

But what is a Chromecast? It is essentially a connection (wireless, of course) between you and a display, be that a monitor or a television. If said display device has an HDMI port, you can turn it into a smart device that can connect to all sorts of apps you have on your phone or tablet.

google chromecast

A Chromecast can breathe new life into an older generation TV, and it can give you access to content on a device that may otherwise be locked, such as a television at a hotel that might charge fees to watch movies or shows.

Here`s how to use it.

How to use a Google Chromecast device

1. Connect the Chromecast to a power source, then plug it into an HDMI port on the TV to be used.

2. Switch on the television and make sure it is tuned to the proper HDMI port.

3. Download the Chromecast app through the Google Home app.

4. Follow the on-screen prompts to set up your Chromecast.

5. Launch the content service of your choice (from Netflix to Hulu to Crackle) and then, when the show or movie begins, tap the casting icon in the corner of the screen and start to stream the content to your TV.

IMG_4004 (1).PNG

And that`s it: this affordable, compact little dongle will now allow you to enjoy all your favorite media on TVs or monitors anywhere you can get a Wi-Fi connection.

Related coverage from How To Do Everything: Tech:

SEE ALSO: The best streaming sticks and boxes you can buy

Join the conversation about this story »

NOW WATCH: 14 problems that can make touch screen laptops infuriating

PewDiePie

The battle over a top YouTuber`s name is taking to the sky — literally: A plane flew over lower Manhattan on Monday morning carrying a banner that read "Subscribe to PewDiePie." 

The phrase is part of an ongoing meme campaign started by Felix "PewDiePie" Kjellberg, the Swedish video creator behind the world`s most popular YouTube channel. An Indian music label, T-Series, has been challenging Kjellberg`s subscriber count in a continuous battle for top YouTube channel. 

Images of the plane flying over Manhattan first surfaced on Twitter on Monday:

THE @pewdiepie PLANE IS FLYING! #ThankYouPewdiepie pic.twitter.com/zdatXt6OOA

— #THANKYOUPEWDIEPIE (@subgap) April 29, 2019

Notably, the phrase "Subscribe to PewDiePie" has been associated directly with two tragic events: The defacing of a World War II memorial, and it was used directly by the Christchurch, New Zealand shooter.

Due to that association, Kjellberg himself denounced the phrase and called for an end to its use over the weekend.

That apparently was not enough to stop someone from hiring a plane to promote his channel:

THERE IT IS!

Source:https://t.co/trM3XPw3Zr pic.twitter.com/oofZDkCK5W

— #THANKYOUPEWDIEPIE (@subgap) April 29, 2019

The creator of the giant banner appears to be an earnest superfan (who either hasn`t gotten or is disregarding Pewdipie`s message to stop using the phrase) as opposed to a troll looking to stir up trouble. But as with so many things on the internet, it`s not entirely clear. 

29TH OF APRIL WILL BE INTERNATIONAL PEWDIEPIE DAY. THE BANNER IS READY TO BE FLOWN. FOLLOW @PewDiePieDay
❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️❤️https://t.co/seZcc7eVKr pic.twitter.com/zJMoAzsCZc

— #THANKYOUPEWDIEPIE (@subgap) April 23, 2019

 

SEE ALSO: PewDiePie wants to end the `subscribe to PewDiePie` meme after the New Zealand mosque massacre

Join the conversation about this story »

NOW WATCH: We unboxed the 1,980 Samsung Galaxy Fold — here`s what comes inside

Mark Zuckerberg question mark

  • Facebook`s annual F8 developer conference will kick off this week in San Jose, California, and is likely to focus on the social network`s plan to move towards privacy and encryption.
  • Marketers said it`s unclear how the model will work with Facebook`s ad business.
  • Facebook is expected to play up WhatsApp and Messenger, but advertisers have concerns about running ads in private messaging apps.
  • They`re also looking for more details about Instagram and its success with Stories.
  • Visit BusinessInsider.com for more stories.

As Facebook explores ephemeral communication over public posts, the question for marketers heading to its F8 conference in San Jose, California, this week is what the move will mean for the billions of dollars that they pour into Facebook.

A month ago, Facebook CEO Mark Zuckerberg wrote a 3,200-word post announcing that he envisions Facebook moving to a model that protects users` privacy.

"There`s almost a hedging against advertising as a core business model on what he said about messaging and encryption," said George Manas, president and chief media officer at OMD. "I wouldn`t say there`s anxiety, but there`s curiosity to understand that strategy in context of Facebook`s broader advertising and revenue strategy as it stands today."

Facebook may be exploring a privacy-friendly measurement system

With the move into encryption, Facebook has hinted that it may be creating a new advertising measurement system, said two sources.

For years, Facebook has pitched advertisers on a version of attribution called closed loop measurement, which matches ad impressions with real-world data to see if someone took an action someone after seeing an ad.

The renewed emphasis on privacy could change that. If Facebook adopted a privacy-focused model that was regulated by the government, its approach would change to mirror that of telecom companies, with advertisers only having access to certain data, ad executives said.

Read more: Facebook is giving advertisers more data on how it grades ads — but buyers say it`s a step behind Google

Advertisers have long asked for companies like Facebook, Google and Amazon to make their data more widely available so advertisers can compare campaign performance across platforms. Facebook has suggested some solutions to advertisers, such as pooling data through Nielsen`s Digital Ad Ratings product, but advertisers acknowledged that sharing data would require significant resources and require new security demands.

Advertisers are cautious about ads in messaging apps

As part of the focus on privacy, Facebook is expected to play up Messenger and WhatsApp. It`s already said it planned to start allow advertising in WhatsApp this year. Agencies cautioned that the move could put off users. 

Brands have created customer service chatbots in the past, but with mixed results. Some marketers have struggled to reach an audience with their chatbots and get them promoted. Manas wondered if the messaging push is part of a revived attempt to get into commerce. 

Brand safety and data mishaps also continue to be concerns for Facebook advertisers. Oscar Garza, EVP of global media activation at Essence, said he wanted Facebook to address issues like how misinformation spreads between news feed and groups.

"How is there a better relationship between publishers and Facebook so that we can get the right information in the news feed?" he said. "There`s deeper questions about tribalism that need to be solved."

Marketers are bullish on Instagram

Instagram is increasingly turning Instagram Stories into ad formats geared at direct-response marketers. Several sources said they expected Facebook to talk about how it`s expanding Stories to Facebook and Messenger.

One area that marketers don`t expect to hear about: Facebook`s move into long-form video with its IGTV and Watch features. While F8 takes place, Facebook ad execs are meeting with advertisers during New York`s Digital Content NewFronts event to talk about its upfront-like offering called Showcase.

IGTV is Instagram`s year-old, big bet on long-form video. Instagram doesn`t sell ad placements within IGTV but publishers and creators can sell branded content that is distributed through IGTV. Tastemade, for example, have run a sponsored IGTV series for Uber Eats as part of a broader campaign that documents immigrant chefs.

"We`ve seen significantly more of our publishing clients sell branded content on Instagram, IGTV and Stories," said one digital media executive attending F8.

Join the conversation about this story »

NOW WATCH: What happens if you stop washing your hair for a year

Sudan`s military rulers and an opposition alliance met on Monday to discuss the powers of a joint military-civilian council to steer the country`s transition after three decades of rule by Omar al-Bashir, two sources familiar with the proceedings said.

American Airlines DFW

  • A software outage is wreaking havoc on major airlines including American, Alaska, and JetBlue on Monday.
  • Based on customer complaints, the outage has prevented passengers from checking in, boarding flights, and making reservations.
  • The issues stem from a failure of reservation software from Sabre, a third-party vendor that works with over 225 airlines around the world.
  • American and Alaska said the software outage has been resolved.
  • Visit Business Insider`s homepage for more stories.

A software outage is wreaking havoc on major airlines including American, Alaska, and JetBlue. Based on customer complaints, the outage has prevented passengers from checking in, boarding flights, and making reservations. 

American, Alaska, and JetBlue have all confirmed that they suffered the same outage. However, American and Alaska have said the issue is now resolved. 

According to the affected airlines, the issues stem from a failure of reservation software from Sabre, a third-party vendor that works with over 225 carriers around the world.

Read more: United Airlines just unveiled its first new look since merging with Continental Airlines nearly a decade ago.

"Sabre is currently experiencing a technical issue that is impacting multiple carriers, including American," American Airlines said in a statement to Business Insider. "We`re working with Sabre to resolve the issue as quickly as possible, and apologize to our customers for the inconvenience."

In a separate statement, JetBlue said, "Due to a Sabre issue impacting multiple airlines, JetBlue customers may experience issues with booking or check-in on jetblue.com, airport kiosks, or our mobile app. We are working to resolve the issue and apologize to our customers for the inconvenience."

Sabre confirmed that they are experiencing technical difficulties in a statement posted on the company`s Twitter account.

"We are aware that there is an issue impacting some of (our) customers." the statement said. "Our global operations and technical teams are actively working to resolve this. We apologize for any inconvenience."

As a result of the outage which Sabre confirmed at 12:52 pm ET, airlines found their check-in systems compromised while aircraft were forced to remain at the gate because passengers couldn`t board their flights. 

#AlaskaAirlines were stuck SFO....300+ in line #outage what happened to going manual? Chaos....missing flights, nonrefundable..... pic.twitter.com/zpWl5Uk4Ba

— Amy (@Calibrownie) April 29, 2019

@AmericanAir fix your booking system. Have been trying to book a flight for over an hour but insists I try again later. Yeah I’ll come again later to higher prices.

— Joseph Philip Gentry (@jpgentry2018) April 29, 2019

Omg @JetBlue whyyyy - i don’t want to miss my flight ✈️ your systems have been down for over an hour and I haven’t been able to check in all day and I can’t get into security 😩#rantover

— Tracy Montes (@_TracyMontes) April 29, 2019

 

SEE ALSO: Boeing`s CEO will be on the first 737 Max flights when the controversial plane returns to service

FOLLOW US: On Facebook for more car and transportation content!

Join the conversation about this story »

NOW WATCH: Elon Musk says Tesla owners could make up to 30,000 a year turning their cars into `robotaxis`

David Solomon

  • Goldman Sachs` investments into technology projects may take longer to pan out than investors appreciate, the bank`s CEO David Solomon said on Monday at the Milken Conference. 
  • Solomon spoke on a panel with other CEOs who discussed the disruptive effects of technology that are battering industries from banking to consumer packaged goods to global infrastructure.

Goldman Sachs is plowing money into technology projects to propel the firm`s next phase of growth. 

Whether it`s Marcus, the firm`s online lender for consumers, or Marquee, its institutional securities trading platform, the bank is spending lots of time and money. The hope among analysts and investors and many employees, frankly, is that those investments will help the firm overcome a years-long slump in trading that`s continued to persist.  

Not so fast. That was the message to come from CEO David Solomon, who spoke in Beverly Hills on Monday at the Milken Institute conference. 

"We are adding some platforms that are more technology driven, especially as we broaden out to serve consumers more broadly," Solomon said. "But it`s an evolutionary change and these changes generally take longer than people think."

Read more: Goldman Sachs is moving away from a tool championed by its former CFO as it pushes its traders to see clients where they once saw quick wins

Solomon spoke on a panel with other CEOs, who discussed the disruptive effects of technology that are battering industries from banking to consumer packaged goods to global infrastructure. His note of caution may offer some push back against analysts and investors pushing for more information about default rates, net interest income and other metrics to judge how the business is growing. 

Goldman made the first Marcus loan in October 2016 and also purchased General Electric`s online banking unit. The bank has since made 5 billion of such loans, and it now has more than 45 billion in customer deposits. It`s now working on building out wealth management capabilities

The firm has spent a lot of money on the effort. Stephen Scherr, Goldman`s CFO, said on a recent earnings conference call said the bank had spent 1.1 billion on developing consumer-facing products firmwide. That refers to Marcus, but also other initiatives. Solomon addressed those costs, obliquely, in his Monday remarks. 

"You have to invest," the CEO said. "One of the big challenges, and one of the reasons why in our business scale matters so much, is the amount of capital you have to spend to have the best technology and be in the best position to serve clients is increasing at a reasonable pace."

Read more: Goldman Sachs plans to offer a new digital wealth product for Main Street — and it`s part of a goal to take on wealth management giants

He added:"You have to pick the opportunities that you can focus on. We`re all limited in what we can invest in."

Join the conversation about this story »

NOW WATCH: If you`re going to see the 3-hour-long `Avengers: Endgame,` plan your bathroom break wisely. Here`s what can happen if you hold your pee too long.

Brazil`s indigenous women have been overturning tradition to step into the spotlight and lead an international push to defend their tribal land rights, which are up against the greatest threat they have faced in years under right-wing President Jair Bolsonaro.
Islamic State`s media network on Monday published a video message purporting to come from its leader Abu Bakr al-Baghdadi in what would be his first appearance since declaring the jihadists` now-defunct "caliphate" five years ago.

Goldman Sachs CEO David Solomon

  • Goldman Sachs CEO David Solomon said he joined Instagram because his precedes sor, Lloyd Blankfein, was already a big user of Twitter.
  • Solomon spoke to a crowd at the Milken Institute Conference in Beverly Hills on Monday.

David Solomon has an interesting explanation for why he joined Instagram.

"My predecessor Lloyd was a big user of Twitter and he`s a lot funnier than I am," Solomon, the CEO of Goldman Sachs, said in response to a question about why he joined the social media platform focused on photos. Solomon spoke at the Milken Institute conference in Beverly Hills on Monday.

Lloyd Blankfein, the former CEO of Goldman, sent his first tweet in June 2017 and has since added 107,000 followers with many tweets that looked like they were trolling President Donald Trump. His first tweet commented on Trump`s decision to withdraw the US from the Paris climate-change accord. 

Solomon hasn`t taken the same tone with Instagram. He`s used the service to promote his side hobby as a dance-music DJ, which has been popular with employees and other younger Wall Street bankers. Solomon owns two Instagram accounts, one under his name with 13,800 followers and the profile language "Dad. DJ. Day job @goldmansachs." He also runs one under his DJ moniker, with 20,500 followers. 

See also: Goldman Sachs is exploring plans to create a Netflix for data, and it marks a new frontier for Wall Street

It`s all part of a larger communication strategy to talk to the firm`s various stakeholders, Solomon said. 

"These are communication strategies," the CEO said. "I thought Instagram for us was an interesting platform to communicate with first and foremost our people," he said, adding "I needed a more modern way to communicate to a workforce that is 75% millennial."

Solomon said he felt like it was a new way to "evolve the communication" that`s gotten "pretty good" feedback. Solomon added that Goldman is thinking about other ways of communicating with its various stakeholders. 

"One of the things of the world we live in is the visibility of a leader in a role to be connected to clients, to people, in a more authentic way," he said. "CEOs don`t sit up in an ivory tower anymore, isolated, and if you do by the way it`s going to be an unsuccessful way to lead your organization. You have to be a little more available, a little more vulnerable, more human and you have to be in touch. I think these tools can be helpful in doing that."

Read more:

Join the conversation about this story »

NOW WATCH: This video shows the moment Sarah Sanders lied to a room full of reporters about FBI agents telling her they were happy Trump fired Comey

the office

  • Comcast`s NBCUniversal has had internal discussions over whether to stop licensing "The Office" — one of its most popular library titles — to Netflix, according to The Wall Street Journal.
  • As legacy media giants like NBCUniversal, Disney, and WarnerMedia bring more content to in-house streaming services, they will have to consider whether to forsake the lucrative licensing revenue they`ve come to rely on from platforms like Netflix.
  • UBS estimated that Comcast`s NBCUniversal and Sky subsidiaries brought in 7.5 billion in revenue from content licensing in 2018. Disney and Fox generated about 10.5 billion, and WarnerMedia brought in 8.5 billion.
  • Visit Business Insider`s homepage for more stories.

The US version of "The Office" ended nearly six years ago. But as the show`s rights owner, NBCUniversal is still making millions off of it.

Netflix reportedly paid about 100 million to stream the workplace comedy exclusively in a deal that expires in 2021. Now that NBCUniversal is preparing to launch its own streaming-video service in 2020, the company has discussed internally whether to remove the popular sitcom from Netflix, The Wall Street Journal reported. If that happens, when the Netflix deal ends, NBCUniversal could forsake the licensing revenue and add "The Office" to a library of content from NBCUniversal that is expected to find a home on the coming streaming platform.

Legacy media giants like Comcast`s NBCUniversal will have to weigh the long-term benefits of using their popular library content to propel their own streaming services — which could become lucrative sources of subscription or advertising revenue when they`re established — against the big checks they receive from Netflix and other companies that license their series and movies.

Comcast`s NBCUniversal and Sky subsidiaries brought in a combined 7.5 billion in content-licensing revenue last year, the investment research firm UBS estimated in January. Comcast, and other legacy media giants launching streaming services, such as Disney and WarnerMedia, could have to forgo part of that revenue if they shift more of their content to in-house streaming services.

estimated overall content licensing chart

Not all of the companies` content-licensing revenue would be in jeopardy.

The UBS estimates include film and TV licensing and production, such as shows like Marvel`s "Daredevil" or NBC`s "The Office" that are licensed to Netflix as originals or library content, as well as TV repeats and movies that are licensed to TV networks through syndication. But if the broader goal for these media brands is to make their streaming platforms the primary place to watch their movies and TV shows, it stands to reason that these media companies would license less to both third-party streaming services and the TV syndication market over time.

Disney appears committed to bringing most of its content to its in-house streaming services — the coming Disney Plus and Hulu, which Disney owns an estimated ~66% of. Disney ended a deal to stream new movies on Netflix to make Disney Plus the hub for all Disney movies starting with "Captain Marvel."

Analysts, including those at UBS, still expect NBCUniversal and WarnerMedia to continue licensing content to third-party streaming services. WarnerMedia, for example, recently renewed its streaming deal with Netflix for "Friends," though it is reportedly reviewing every title in its library to determine which to put on its own service.

Analysts at Bernstein estimate Disney will move 3.5 billion in content licensing in-house to Disney Plus and Hulu, based on guidance from the company and the firm`s estimates (it estimates Disney`s total content-licensing revenue to be a little lower than UBS does, at about 7 billion to 8 billion a year, according to a note last week). What happens to the rest is still a question mark.

When Disney talks about how much it plans to invest in content for its streaming services, it doesn`t say how much it will forgo in other licensing revenue. The company expects to post about 500 million in content expenses tied to original programming for Disney Plus in 2020, the first fiscal year containing the service, Christine McCarthy, Disney`s chief financial officer, said at the company`s annual investor-day presentation on April 11. It will also license about 1.5 billion worth of movies and TV shows from Disney`s library and TV networks that year. By 2024, when Disney expects Disney Plus to become profitable, content expenses will grow to about 2 billion, with another 2.5 billion in licensing.

There are other concerns for these entertainment giants beyond lost licensing revenue. The streaming services from these legacy companies could cannibalize the subscribers to their TV channels, driving down affiliate and advertising revenue that legacy media companies still depend on. The streaming services could also pinch sales of digital downloads and DVDs, which are already in decline.

But if Comcast and its fellow media giants firmly believe that streaming is the future of TV, these are risks they`ll have to take.

SEE ALSO: NBC has reportedly discussed pulling `The Office` from Netflix to fuel its own streaming service

SEE ALSO: Comcast is reportedly holding talks with Disney to sell its 30% stake in Hulu

Join the conversation about this story »

NOW WATCH: We spent a day behind the scenes of `Jeopardy!` with Alex Trebek in 2017 — here`s what he`s really like

Talks between Britain`s government and the opposition Labour Party to break an impasse over Brexit are going better than before, a politics editor at HuffPost UK said on Monday, adding that negotiations were set to continue.
A Ugandan court ordered on Monday the detention of a pop star and lawmaker who wants to unseat veteran leader Yoweri Musaveni at the next election on charges of having organized a demonstration last year against a new tax on social media users.
Colored Giza Casing Stones, Menkaure`s Pyramid.

Most casual students of ancient history know that the outer casing stones of the Giza pyramids were constructed of highly polished Tura limestone blocks that caused them to gleam like a trio of colossal jewels in the Egyptian sun.

captain marvel

  • "Avengers: Endgame" made 1.2 billion worldwide in just five days.
  • It joins seven other MCU movies to reach that milestone.

"Avengers: Endgame" is the latest Marvel Cinematic Universe movie to hit a huge box-office milestone, and it did it in just five days.

"Endgame" grossed 1.2 billion worldwide in its opening, shattering records and expectations. In China, it broke the record for biggest opening day ever on Wednesday. "Endgame" also made a record 356 million in its domestic opening weekend, more than Disney`s initial estimate.

The movie joins seven other MCU movies that made over 1 billion ("Endgame" has already made more than three of them). "Captain Marvel" fought off online trolls, which launched a campaign to tank its Rotten Tomatoes audience score, to become a global phenomenon this year. That`s two Marvel movies to hit 1 billion this month.

Below are the seven MCU movies to hit 1 billion, ranked by how much they made globally, according to Box Office Mojo (unadjusted for inflation):

SEE ALSO: Every Marvel Cinematic Universe movie, ranked by how much money they made at the box office opening weekend

8. "Captain Marvel" (2019)

Worldwide box office (so far): 1.1 billion

Domestic box office (so far): 413 million

Opening weekend: 153 million



7. "Captain America: Civil War" (2016)

Worldwide box office: 1.15 billion

Domestic box office: 408 million

Opening weekend: 179 million



6. "Iron Man 3" (2013)

Worldwide box office: 1.214 billion

Domestic box office: 409 million

Opening weekend: 174 million



See the rest of the story at Business Insider

markus persson minecon

The creator of "Minecraft" isn`t allowed to participate in the game`s 10-year anniversary celebrations, Microsoft says.

"His comments and opinions do not reflect those of Microsoft or Mojang and are not representative of `Minecraft,`" a Microsoft representative told Variety on Monday.

The 10-year anniversary celebrates the launch of "Minecraft" as a playable game. It entered what is known as "alpha" — a software development jargon term that refers to the first usable form of software — on May 17, 2009. Microsoft is hosting an event to celebrate the upcoming anniversary, and says Persson isn`t welcome.

Neither Persson nor Microsoft immediately responded to Business Insider`s request for comment on Persson`s exclusion from the event. 

Read more: `I`ve never felt more isolated`: The man who sold Minecraft to Microsoft for 2.5 billion reveals the empty side of success

Minecraft

The "comments and opinions" Microsoft referenced in its statement largely come from Persson`s Twitter account, @notch

His statements range from being critical of "Minecraft" to supportive of conspiracy theorists. In some instances, he`s made offensive statements about trans people. In other instances, he`s said things like, "If you`re still on the left, PLEASE wake up. You are evil."

Persson has also spent a lot of time defending whiteness. "It`s okay to be white," Persson said in November 2017. "There clearly is an agenda against white men," he wrote in December 2018.

For these comments, among others, Microsoft seems to be distancing Persson`s creation from its creator: the company notably removed mentions of Persson from its main screen earlier this year. 

Join the conversation about this story »

NOW WATCH: Facial recognition is almost perfectly accurate — here`s why that could be a problem

The video is said to show the reclusive leader of the Islamic State, Abu Bakr al-Baghdadi. If confirmed, it would be the first time he has been seen in a video in years.
Islamic State`s media network published on Monday a video message purporting to come from its leader Abu Bakr al-Baghdadi in what would be his first appearance since declaring the jihadists` now-defunct "caliphate" five years ago.
United Nations Secretary-General Antonio Guterres raised the plight of Muslims in China`s Xinjiang region during a visit to Beijing last week, a U.N. spokesman said on Monday.

Featured in Ripley`s Believe It or Not!

Many legendary male writers have women to thank for their success. If it weren’t for these ladies’ tireless attention to detail, encouragement, and backbreaking work, these men wouldn’t have penned such iconic works such as War and Peace and Lolita.  There are also some famous male writers who “borrowed” from the women in their lives to produce their works.

Women in the 19th and early 20th centuries had fewer freedoms, but those behind the scenes were passionate about the writing process and were partially responsible for some incredible novels, poems, and children’s books that are beloved by people even today.

Zelda Fitzgerald

zelda fitzgerald

The characters on The Beautiful and Damned were illustrated to look like Zelda and Francis.

F. Scott Fitzgerald, author of novels such as The Great Gatsby and Tender Is the Night, had a penchant for incorporating actual life events into his work. Some of his characters were inspired by his wife, Zelda, with whom he had a tumultuous relationship. Scott also stole some of Zelda’s writing and published it directly into his work. While reviewing one of her husband’s books, Zelda wrote:

“I recognize a portion of an old diary of mine which mysteriously disappeared shortly after my marriage, and also scraps of letters which, though considerably edited, sound to me vaguely familiar. In fact, Mr. Fitzgerald—I believe that is how he spells his name—seems to believe that plagiarism begins at home.”

Scott, in turn, accused Zelda of stealing his ideas when she wrote her only published work, 1932’s Save Me The Walz, claiming she used autobiographical details from their lives together that he intended on including in his novel Tender Is The Night.

Olivia Langdon Clemens

olivia langdon family

When Olivia Langdon married American author Samuel Langhorne Clemens, a.k.a, Mark Twain, in 1870, the pair treated each other as equals. At one point, Twain’s copyrights were transferred to Olivia to prevent creditors from gaining access to the family’s income. Olivia was very involved in her husband’s writing, according to the Mark Twain House & Museum. He would give her his manuscripts to review and would often—but not always—take her suggestions. Their children would sit by their mother as she read Twain’s pieces and mark the pages she thought needed more work. In his autobiography, Twain noted how he would purposely write items he knew Olivia would disapprove of just to see how she would react. Olivia also edited her husband’s books, articles, and lectures and was dubbed a “faithful, judicious, and painstaking editor,” by her husband.

Helen Palmer

dr. seuss

Helen Palmer’s name may not sound familiar, but you probably heard of her husband—Theodore Seuss Geisel, a.k.a. Dr. Seuss. Ted spent a large chunk of time following World War II writing children’s books, something he may not have followed through with had it not been for Helen’s intense editorial and emotional support. He went to Oxford University, but Helen, a fellow student, encouraged him to give up education and focus on art instead. Throughout his career, Helen was instrumental in guiding her husband as he produced playful animal illustrations alongside entertaining stories. She took her own life in 1967 after she discovered Ted was having an extramarital affair with a family friend.

Valerie Eliot

cats

CC Effie

Typist Esme Valerie Fletcher became Nobel-prize winning poet T.S. Eliot’s assistant in the 1950s. Despite a near 40-year age difference, the pair hit it off and wed in 1957. After his death in 1965, Valerie became the late author’s editor and annotator. She was responsible for publishing several of her late husband’s works, including The Waste Land: Facsimile and Manuscripts of the Original Drafts and The Letters of T. S. Eliot: Volume 1, 1898–1922. One of Valerie’s most significant contributions was allowing her husband’s work, Old Possum’s Book of Practical Cats, to be adapted into a musical. You may have heard of Andrew Lloyd Webber’s musical Cats? Valerie died in 2012 at the age of 86 in London.

Colette

colette

Colette married writer Henri Gauthier-Villars (“Willy”) in 1893. Before long, Willy realized that his wife had a talent for writing. He forced her to write by locking her in a room. Colette used her own life experiences to flush out the character of a young ingénue named Claudine. Willy wound up publishing four novels Colette wrote under his own name: Claudine at School, Claudine in Paris, The Indulgent Husband and The Innocent Wife. Colette left her husband in 1906 (divorcing him in 1910) and went on to publish Retreat From Love the following year. She continued to write and produced several more novels over the years, such as Chéri, The Last of Chéri, The Pure and the Impure, and Gigi.

Sophia Tolstaya

tolstoy family

Sophia Tolstaya married Russian novelist Leo Tolstoy in 1862. The couple had 13 children, five of whom died in childhood. Sophia copied and edited his massive tome, War and Peace, seven times by hand. She did so by candlelight with a magnifying glass so she could read her husband’s notes after their children went to bed at night. Sophia also kept a diary and wrote the memoir, My Life. At the age of 82, Leo suddenly left the family and sold most of their property so he could wander the countryside. He died 10 days later. Sophia passed away at the age of 75 in 1919.

Anna Grigoryevna

anna dostoyevskaya

Fyodor Dostoyevsky was in a bit of a pickle when he first met stenographer Anna Grigoryevna in 1865. A gambling addiction put him greatly in debt, and he signed a contract that would mean losing all the rights to his work if he didn’t produce a novel by November the following year. He spent most of the year working on Crime and Punishment instead of the promised novel The Gambler. Before long, it was October and Dostoyevsky realized he needed some serious help. He hired Anna and for the next 25 days he dictated the novel to her as she wrote it in shorthand and then copied it down. During the process, the pair fell in love, and they wed a few months later. Anna was responsible for making Dostoyevsky Russia’s first self-published author. She also curbed his gambling problem and helped him avoid risky contracts.

Vera Nabokov

vera nabakov

Russian author Vladimir Nabokov and his wife wed in 1925. Vera gave up her own writing career to act as her husband’s critic, reviewer, typist, and literary agent. At the same time, she supported the family by working as a secretary and translator. When they moved to America in 1940, she even learned to drive so she could take her husband on trips around the country. Vera reportedly saved the Lolita manuscript from being destroyed after a frustrated Vladimir threatened to throw it in a fire. In the biography Vladimir Nabokov: The Russian Years, Vera is described as Vladimir’s: “wife, muse, and ideal reader; his secretary, typist, editor, proof-reader, translator, and bibliographer; his agent, business manager, legal counsel, and chauffer; his research assistant, teaching assistant, and professorial understudy.” The author dedicated all of his works to Vera.

Dorothy, Dora, & Mary Wordsworth

wordsworth

William Wordsworth’s sister, daughter, and wife assisted him throughout his life. Dorothy transcribed her brother’s work, edited his unpublished works, and was his literary executor following his death. William reportedly used some of Dorothy’s descriptions, without attribution, in his successful guide book Lake District. He also borrowed from his sister’s journals and wrote his famous poem Daffodils using a description Dorothy originally penned. William’s daughter Dora also aided in copying drafts of her father’s works and acted as his literary assistant as did his wife Mary.


By Noelle Talmon, contributor for Ripleys.com

Source: The Often-Overlooked Women Behind Famous Male Writers

There is a scene in "Eyes Wide Shut" in which Tom Cruise`s character, Bill, and a prostitute named Domino enter a New York building apartment through a red doorway.

Daniel Ek, CEO and Founder of Spotify

  • Spotify fell 1.5% in trading despite the company beating analyst expectations for first-quarter revenues and paid user growth.
  • Losses, however, continued for the company, which forecast they will continue through at least 2019.
  • Watch Spotify trade live.

Spotify fell 1.5% in Monday trading after the company reported first-quarter revenues and paid user growth that beat Wall Street expectations. The shares had traded up as high as 3.5% before falling later in the day.

Revenues grew by 33% year-over-year to 1.51 billion euros, 3% ahead of the 1.47 billion euros that was expected by the Bloomberg consensus. Paid users subscriptions accounted for 92% of revenues while advertising revenues comprised the balance. 

The Swedish-based music-streaming service also reached a key threshold of 100 million paid subscribers in the first quarter topping the 99 million that was anticipated. Spotify had double the number of users as runner-up Apple as of June 2018.

Monthly active users reached 217 million, slightly below analyst consensus expectations of 219 million. Average revenue per user totaled 4.71 euros, which was flat year-on-year. A slight decline is expected as the company expands into emerging markets.

The growth in users was partly attributed to an expanding partnership with Google, utilizing the Google Home Mini voice speaker. Spotify has identified the use of voice speakers as a critical area of growth. Competitors such as Apple Music and Amazon Prime Music have made strong inroads into music streaming with their Siri and Alexa voice speakers. Spotify also has partnerships in place with Samsung and Hulu.

Despite the growth in revenue and users, the company has struggled in reaching profitability. Spotify missed expectations of adjusted earnings per share by reporting a loss of 0.79 euros, nearly double the Bloomberg consensus. Total losses for the quarter reached 47 million euros.

Looking ahead, Spotify sees monthly-active-user growth of between 23% and 27% for next quarter and paid subscribers of 107 million to 110 million. The company predicts losses will continue through 2019, amounting to between 180 million euros and 340 million euros.

Spotify is up 21% year to date.

SPOT stock chart

Join the conversation about this story »

NOW WATCH: What happens to your body when you drink too much coffee

facebook app

  • Checking in on Facebook is a great way to let friends and family know where you are as you vacation, attend an event, try a new restaurant, or visit a famous site.
  • When you check in at a specific location, you can also let loved ones know you are safe after traveling or in the wake of a natural disaster, civil unrest, or some other serious situation.
  • Whether you are using a computer or checking on via the Facebook app on a phone or tablet, the process takes all of a minute or less.
  • Visit Business Insider`s homepage for more stories.

So, what is checking in on Facebook? Really nothing more than the modern equivalent of scrawling "Your Name was here," except rather than leaving behind graffiti, you post the information on the world`s largest social media platform.

A Facebook check in is a post linked to a location, be it as specific as a restaurant, museum, or ballpark, or as general as a town or city. While more often than not people use the Facebook check in simply to let people know what neat places they have been, you can also use the function as a more practical tool, checking in once you arrive somewhere to inform a large group trying to coordinate a meet-up, for example.

And in more extreme cases, a Facebook check in is a good way to quickly inform dozens, hundreds, or even thousands of people of your whereabouts, perhaps reassuring your own network that you are OK after a storm, wildfire, or terrorist attack.

Just remember that it`s likely many people beyond your immediate group of Facebook friends can see your check in, so don`t share your physical location too lightly.

How to check in on Facebook from a computer

While a bit less practical than the check in via mobile, using a laptop or desktop computer to check in on Facebook is nonetheless quite easy.

1. Log in to your FB page and navigate to your feed.

2.  At the bottom right corner of the "Create Post" window at the top of the feed, click the three horizontal dots floating in a light gray oval.

Screen Shot 2019 04 29 at 10.59.51 AM

3. Click the tab labeled "Check in" with the red map marker icon.

Screen Shot 2019 04 29 at 11.00.03 AM

4. Select the desired location from the list that appears, or type in your chosen location.

5. Add any other features you wish, such as a photo, tagged friends, etc. then type in any content you wish and hit the "Share" button at the bottom of the post.

How to check in on Facebook via the Facebook app

The Facebook app makes checking in amazingly easy. Just open it up and you`ll see how.

1. Launch the Facebook app, then tap the words "Check in" at the top right of the screen.

facebook

2. Choose your location from the list that appears or type in your desired spot.

3. Add commentary, tags, photos, and so on, then hit "Share" in the top right corner.

IMG_3998.PNG

Related coverage from How To Do Everything: Tech:

Join the conversation about this story »

NOW WATCH: Facial recognition is almost perfectly accurate — here`s why that could be a problem

A Hong Kong bookseller who was detained by China is seeking refuge in Taiwan, saying his home city will no longer be safe when new laws are enacted allowing extradition to China, which could drive even more emigrations from the financial hub.
JPMorgan Chase has joined a boycott of hotels owned by the Sultan of Brunei after the Asian country introduced laws that punish gay sex with death.

google drive

  • You can quickly share multimedia content with collaborators by creating and sharing a Google Drive folder with these steps. 
  • Nearly every major business or school uses at least one Google application. Google Drive is one of the most popular and versatile. 
  • Google Drive lets you share photos, music, spreadsheets, and more to anyone that has an email address, as well as organize those files into folders.
  • Visit Business Insider`s homepage for more stories.

These days, Google has an application for pretty much everything you`d need to do online, including creating and sharing documents, files, and folders. You can upload everything from photos to PDFs to MP3s onto Google Drive, Google`s file hosting service, and in just a few minutes, you can share them with anyone whose email address you have.

Sharing folders that contain documents, files, and other uploads via Google Drive is quick and easy, especially since pretty much everyone uses at least one Google product these days (and likely several of them).

Here`s how to do it.

How to share folders on Google Drive

1. To create your own folder on Google Drive, navigate to https://drive.google.com in your internet browser. Note that you will need to be logged into your Google account; Drive will prompt you to do so if you haven`t already.

2. Once signed in and at the above URL, you will see all of the files and folders currently stored on your Google Drive account.

3. To create a new folder, navigate to the "New" button in the upper left-hand corner of your screen, beneath the Google Drive logo, and click on it.

google drive 1

4. You will see a drop-down menu of options, including one for "Folder." Clicking on this will allow you to create a new folder from scratch. (Note that if you already have a folder of documents on your computer that you would like to upload in its entirety, you should choose the "Folder upload" option in this menu.)

google drive 2

5. After clicking on "New" and then "Folder," you will be given a pop-up window in which to enter the title of your folder. Call it whatever you like.

5. Once you enter a title for your folder and hit the Enter or Return key on your keyboard, you will see the folder appear in your Google Drive file list. Click the title of your folder to open it.

Google Drive 4

6. From here, you can upload files to your folder by either dragging and dropping them into the window from your computer, or you can upload manually by right clicking on the screen and selecting the "Upload files" option.

google drive 5

7. Once you have the files uploaded that you want to share, it`s time to share the folder. Doing so is simple! First, make sure to open the folder. Then, click on the folder title in the menu at the top of the screen. A drop down menu will appear, and from there you should select the option to share by clicking "Share."

google drive 6

8. A pop-up window will appear that allows you to enter the name or email address of the person you would like to share the folder with. Note that entering a person`s name will only work if they are part of your contacts list and therefore their email address will be auto-generated. You can add as many people as you`d like to the sharing permissions; simply press the enter key after inputting each person`s address.

google drive 7

9. Once you`ve put in the email addresses of anyone you want to share the folder with, hit "Send" and an invitation to open the folder will be sent.

10. If you would rather share the folder directly, via instant message or text, you can get a URL by clicking "Get shareable link" in the upper right-hand corner of the pop-up window that appears after you hit "Share." Simply click on "copy link" and you can then paste it to the recipient directly.

google drive 8

It`s also worth noting that you can and should ensure that you`re setting proper file sharing permissions to ensure the safety of your files. This option can be seen in the "shareable link" pop-up, where you have the option to allow those with the folder`s link to edit its contents or simply view them.

There you have it! Uploading and sharing folders on Google Drive is easy, and the more you do it, the quicker the process becomes.

Related coverage from How To Do Everything: Tech:

Join the conversation about this story »

NOW WATCH: We unboxed the 1,980 Samsung Galaxy Fold — here`s what comes inside

Avengers Endgame Disney

  • Disney updated its box-office figures on Monday for "Avengers: Endgame."
  • It made 6 million more domestically on Sunday than originally projected.
  • That brings its domestic total to 356 million.
  • The movie`s international box office also increased. Now its global total is 1.222 billion.
  • Visit Business Insider`s homepage for more stories.

 

Throw more money into the Disney vault. "Avengers: Endgame" had a better Sunday than what was originally projected by the studio

On Monday, Disney updated the weekend box-office take for its record-breaking Marvel movie. Originally projected to bring in 84.3 million on Sunday, the movie actually took in 90.3 million. That brings its total domestic gross to 356 million domestically. The movie also upped its international gross to 866 million.

The up-to-date global gross for "Endgame" is 1.222 billion over five days (the movie opened in China on Wednesday).

Read more: The 3 Marvel Cinematic Universe movies audiences loved the most, and the one they liked least

Sunday`s estimates — 350 million domestically, 859 million internationally — were amazing numbers already. They were record-breaking numbers, in fact. No opening weekend movie had ever crossed the 300 million mark domestically, 800 million mark internationally, and 1 billion mark globally.

But what the adjusted figures on Monday prove is that "Endgame" will have legs. 

Sorry, other Hollywood studios opening movies soon, "Endgame" won`t have a dramatic drop in ticket sales. According to ComScore, 82% of audience members who saw the movie said they would recommend "Endgame" to a friend and 29% said they would see the movie again in theaters.

So expect more record-shattering box-office figures for "Endgame" going into this weekend and likely beyond.  

Join the conversation about this story »

NOW WATCH: These dinosaur puppets come to life in the live `Jurassic World` show

Global military expenditure reached its highest level last year since the end of the Cold War, fueled by increased spending in the United States and China, the world`s two biggest economies, a leading defense think-tank said on Monday.
Islamic State`s Al Furqan media network published on Monday what it said was a video message from its leader Abu Bakr al-Baghdadi in which he said the group would seek revenge for the killing and imprisonment of its militants.
Turkish aerospace manufacturer Kale Group said on Monday if disagreements between Ankara and Washington curb parts orders and exclude it from an F-35 project, then any lost sales would be offset by turning to civil aviation.
Spain`s electoral commission barred former Catalan leader Carles Puigdemont from running in the European Parliament elections in May, he said on Monday, a day after a general election where the region`s separatism has been a pivotal issue.

korea selfie phone

  • Samsung tried to get ahead of its competitors in the smartphone market by releasing the first mass-market folding phone, the Galaxy Fold.
  • But reality punctured the hype when journalists reviewing the device found the folding screen broke after just a few days of use.
  • It`s more than just a PR disaster because Korea`s 1.7 trillion economy depends on Samsung doing well.
  • Economics professor Park Sangin told Business Insider: "Any issues at Samsung Electronics will spread out into the economy of Korea."
  • Visit Business Insider`s homepage for more stories.

Samsung`s folding phone was front and centre of Unpacked, the annual February event where the world`s biggest phone maker shows off their latest devices.

In a presentation that has now been watched more than 4 million times on YouTube, Samsung crowed "the Galaxy Fold is a device unlike any other that has come before it" and that the foldable phone "defies category."

The PR buzz didn`t last long. After issuing review units of the folding phone to tech journalists in April, Samsung was forced to retrieve the phones only a few days later after some reviewers reported problems with the display.

samsung galaxy fold

It was yet another disaster for Samsung. The folding phone debacle follows the exploding Note 7 in 2016, which dented the Korean brand, and the highly political arrest of Samsung heir Lee Jae-yong.

Lee was convicted of bribing Korea`s ex-president and sentenced to five years in jail. He was freed in early 2018 after that sentence was suspended.

Read more: There were major red flags that Samsung`s 1,980 Galaxy Fold foldable smartphone wouldn`t be ready in time

Korea-watchers say the country`s 1.7 trillion economy is still dependent on the success of a few domestic megacompanies like Samsung — and disasters like the Galaxy Fold saga are bad news.

"Any issues at Samsung Electronics will spread out into the economy of Korea," Park Sangin, professor of economics at Seoul National University told Business Insider.

Korea has a delicate, highly concentrated 1.7 trillion economy

Moon Jae in

Korea is often hailed as a miracle story in economics, compared favourably to its communist and isolationist neighbour, North Korea. The two split in 1945, and then went to war, but the aftermath would look dramatically different for the two nations. The South would industrialise rapidly. The North would turn inwards and become an economic basket case.

Korea is now the world`s sixth-biggest export economy, according to the CIA, behind Japan and ahead of the UK. That is mostly thanks to its "chaebol" — a combination of the Korean words for wealth ("jae") and clan or family ("beol").

These are Korea`s family-owned conglomerates which now dominate the country`s manufacturing output. Several will be familiar names to Westerners: Samsung, Hyundai, and LG. Their global success has been good news for Korea over several decades, but the result is an economy that is dependent on a handful of companies.

Park explained: "The Korean economy is a very concentrated economy, in terms of the concentration of the manufacturing sector by a small number of big companies."

Manufacturing, he said, accounts for around 30% of Korea`s overall economy, and the chaebol are especially dominant. "It`s really huge," he said. Samsung is Korea`s most profitable chaebol.

Still, Samsung is hugely diverse with fingers not just in smartphones and TVs but semiconductors, advertising, insurance, and even shipbuilding services. According to Park, the main group has about 50 affiliated companies. In theory, then, failure in one Samsung business shouldn`t be enough to dent the entire economy.

Not so, says Park. There are two reasons why.

The first is that Samsung makes the bulk of its revenue from its consumer electronics arm. On its website, Samsung said it made 239.6 trillion Korean won (206 billion) in revenue in 2017. This equates to around 13% of Korea`s GDP.

This makes sense, given Samsung`s devices are still hugely popular and it is by many measures the biggest phone maker in the world.

Samsung

The second is that some of Samsung`s other businesses depend on the success of the consumer electronics arm, because those businesses are shareholders. That creates a potential domino effect.

"Samsung has around 50 or 55 affiliates, but Samsung Electronics is kind of the dominant one," Park said.

He added that Samsung`s founding Lee family has retained a complex, circular shareholding setup that has allowed them to retain control. The upshot is that various Samsung affiliates hold shares in Samsung Electronics.

Samsung Life Insurance is one example.

"Samsung has the number one insurance company in Korea, Samsung Life Insurance," Park said. "A failure of Samsung Electronics will cause a huge problem for Samsung Life Insurance because it owns a major asset in the form of shares in Samsung Electronics. So that would cause wider problems in the life insurance industry as well."

Bloomberg reported in July that Korea was considering forcing Samsung Life to sell off around 13 billion of its shareholding, as the country`s new president seeks to restrict the control the Lee family has over the Samsung empire.

Korea`s economy is at risk because no one is really willing to take on the chaebol

samsung lee jae-young

Clearly, a poorly designed folding phone won`t bring down the entirety of the Korean economy.

But, as Park notes, Samsung is facing the continued threat from its main rival Apple, and emerging competition from Chinese phone manufacturers such as Huawei who can make high-end Android phones and offer them at lower prices. That squeeze is forcing Samsung to rush out innovative new products.

Bloomberg reported that Samsung pushed engineers and designers to design a workable folding phone and file as many patents as possible to beat the competition.

The report compared the Galaxy Fold debacle directly to the exploding Note 7: "[The] Fold episode shows similar tendencies to rush ahead with new technologies to satisfy corporate goals in spite of engineering risks. Even inside Samsung, employees have to wonder how they so quickly got so close to another debacle."

Park agrees.

"Samsung rushed into these more innovative products," he said. "That`s why we had the burning Note 7, and now I guess it rushed into the foldable phone, to be the first maker in the world. But they are really afraid of repeating the mistakes of the Galaxy Note 7 this time again."

Park said that Korea had "sensed the limitation" of a chaebol-based economy for years, and that it`s making noises about reform.

Samsung isn`t the only troubled chaebol. Korea Air is another family-owned conglomerate which is under scrutiny. Its chair, Cho Yang-ho, died earlier in April, and had been on trial for embezzlement and breach of trust. His daughter famously flew into a rage over the way the airline served macadamia nuts in its original packaging, and was subsequently sentenced to a year in prison.

Korean Air Heather Cho

The arrest and imprisonment of Samsung heir Lee Jae-yong was a watershed moment, as was the sentencing of Korea`s former president Park Geun-hye.

But reform under new president Moon Jae-in has been slow, partly because the chaebol families hold so much political sway. "Korean chaebol are the most powerful incumbent, they are the vested interests of Korea," said Park. "They are against reforms that are against their own interests.

"Even after Moon Jae-in took power... it`s been two years since he came to power but we haven`t seen any specific reforms at all. My sense is that it is unlikely the Moon government will do any fundamental reforms in Korean chaebol."

Join the conversation about this story »

NOW WATCH: Anime could give Netflix a major advantage against Disney in the streaming war

Pages: 1 2 3 4 5 ... » »»

Like Us On FB

Follow Ayman

Blogger Tricks

Blogs

Ayman Admin
U.N. human rights chief Michelle Bachelet, who ear... more
Ayman 14 minutes ago
Ayman Admin
Canadian Prime Minister Justin Trudeau returned to... more
Ayman 14 minutes ago
Ayman Admin
Ayman Odeh, leader of the Arab Joint List, said hi... more
Ayman 15 minutes ago
Journalist Vip
"We want world leaders to hold polluters accountab... more
Journalist 15 minutes ago
Ayman Admin
CAIRO – 22 September 2019: Egypt’s Sta... more
Ayman 15 minutes ago
Ayman Admin
CAIRO – 22 September 2019: A considerable nu... more
Ayman 15 minutes ago
Ayman Admin
Britain`s Duke and Duchess of Sussex and their bab... more
Ayman 45 minutes ago
Ayman Admin
Canadian Prime Minister Justin Trudeau returned to... more
Ayman 45 minutes ago
Ayman Admin
Hundreds of climate activists paid their respects ... more
Ayman 45 minutes ago
Ayman Admin
McDonald`s recently moved its US creative busines... more
Ayman 46 minutes ago

Groups

Unity3d
6 members
FaceBook
11 members
Cats
11 members
Twinity
19 members
There.com
28 members

Top Rated Blogs

Donate

Google this