Facebook

Facebook's Legs Video Was A Lie (kotaku.com) 59

The company formerly known as Facebook earlier this week announced -- and demonstrated -- that avatars on its metaverse will soon have legs. Here's an update on that: While the updates bringing full-body avatars aren't expected until 2023, Zuckerberg was clearly seen jumping around in the video, giving everyone an early look at the tech. Or was he?

Anyone who has ever been around any piece of marketing ever made should know by now that not everything is as it seems when a company is trying to sell you something. And in this case, the video Meta showed off was made with some help. As UploadVR's Ian Hamilton has since reported, Meta has issued a follow-up statement, which says, "To enable this preview of what's to come, the segment featured animations created from motion capture."

Advertising

Meta's New Headset Will Track Your Eyes for Targeted Ads (gizmodo.com) 53

Earlier this week, Meta revealed the Meta Quest Pro, the company's most premium virtual reality headset to date with a new processor and screen, dramatically redesigned body and controllers, and inward-facing cameras for eye and face tracking. "To celebrate the $1,500 headset, Meta made some fun new additions to its privacy policy, including one titled 'Eye Tracking Privacy Notice,'" reports Gizmodo. "The company says it will use eye-tracking data to 'help Meta personalize your experiences and improve Meta Quest.' The policy doesn't literally say the company will use the data for marketing, but 'personalizing your experience' is typical privacy-policy speak for targeted ads." From the report: Eye tracking data could be used "in order to understand whether people engage with an advertisement or not," said Meta's head of global affair Nick Clegg in an interview with the Financial Times. Whether you're resigned to targeted ads or not, this technology takes data collection to a place we've never seen. The Quest Pro isn't just going to inform Meta about what you say you're interested in, tracking your eyes and face will give the company unprecedented insight about your emotions. "We know that this kind of information can be used to determine what people are feeling, especially emotions like happiness or anxiety," said Ray Walsh, a digital privacy researcher at ProPrivacy. "When you can literally see a person look at an ad for a watch, glance for ten seconds, smile, and ponder whether they can afford it, that's providing more information than ever before."

Meta has already developed a ton of technology for these purposes. The company filed a patent for a system that "adapts media content" based on facial expressions back in January, and it has experimented with harnessing and manipulating people's emotions for more than a decade. In January, it patented a mechanical eyeball. Despite the public's privacy concerns about Meta, it may be hard for people who use the company's products to resist activating the eye-tracking features because of what they will allow your avatar to do.

"If Meta is successful, there's going to be a stigma attached with denying that data," ProPrivacy's Walsh said. "You don't want to be the only one looking like an expressionless zombie in a virtual room full of people smiling and frowning." Of course, eye-tracking data could be used to determine what you're thinking about buying. Maybe you spend a few extra seconds glancing at an expensive digital fedora, and the company sends you a coupon code an hour later. But measuring your emotions opens up a whole new arena for targeted ads. Digital marketing is all about showing you the right ad at the right moment. Walsh says advertisers could build campaigns with content specifically designed for people who seem frustrated, or more cheerful ad for people who are in a good mood.

Businesses

Intel Plans Thousands of Job Cuts In Face of PC Slowdown 50

An anonymous reader quotes a report from Bloomberg: Intel is planning a major reduction in headcount, likely numbering in the thousands, to cut costs and cope with a sputtering personal-computer market, according to people with knowledge of the situation. The layoffs will be announced as early as this month, with the company planning to make the move around the same time as its third-quarter earnings report on Oct. 27, said the people, who asked not to be identified because the deliberations are private. The chipmaker had 113,700 employees as of July. Some divisions, including Intel's sales and marketing group, could see cuts affecting about 20% of staff, according to the people.

Intel is facing a steep decline in demand for PC processors, its main business, and has struggled to win back market share lost to rivals like Advanced Micro Devices Inc. In July, the company warned that 2022 sales would be about $11 billion lower than it previously expected. Analysts are predicting a third-quarter revenue drop of roughly 15%. And Intel's once-enviable margins have shriveled: They're about 15 percentage points narrower than historical numbers of around 60%. During its second-quarter earnings call, Intel acknowledged that it could make changes to improve profits. "We are also lowering core expenses in calendar year 2022 and will look to take additional actions in the second half of the year," Chief Executive Officer Pat Gelsinger said at the time.

Intel's last big wave of layoffs occurred in 2016, when it trimmed about 12,000 jobs, or 11% of its total. The company has made smaller cuts since then and shuttered several divisions, including its cellular modem and drone units. Like many companies in the technology industry, Intel also froze hiring earlier this year, when market conditions soured and fears of a recession grew. Gelsinger took the helm at Intel last year and has been working to restore the company's reputation as a Silicon Valley legend. But even before the PC slump, it was an uphill fight. Intel lost its long-held technological edge, and its own executives acknowledge that the company's culture of innovation withered in recent years. Now a broader slowdown is adding to those challenges. Intel's PC, data center and artificial intelligence groups are contending with a tech spending downturn, weighing on revenue and profit.
Google

Google's 'Incognito' Mode Inspires Staff Jokes - and a Big Lawsuit (bloomberg.com) 60

An email mocking Chrome browsing mode's faux privacy has surfaced in the courtroom. From a report: On International Data Privacy Day last year, an email popped into Alphabet Chief Executive Sundar Pichai's inbox from Google's marketing chief Lorraine Twohill full of ideas on gaining user trust. "Make Incognito Mode truly private," she wrote in a bullet point. "We are limited in how strongly we can market Incognito because it's not truly private, thus requiring really fuzzy, hedging language that is almost more damaging." Now, billions of dollars in damages could be at stake in a consumer lawsuit targeting the private-browsing feature if a judge agrees Tuesday to let the case proceed as a class action on behalf of millions of users.

Twohill's assessment of Incognito's shortcomings was remarkably candid considering Google had already been sued at the time she messaged her boss, who himself had shepherded the feature through development back when the company launched its Chrome browser in 2008. Google denies wrongdoing. "Privacy controls have long been built into our services and we encourage our teams to constantly discuss or consider ideas to improve them," spokesman Jose Castaneda said in an email. Court filings show that well before the search engine giant was taken to court, rank and file Googlers frankly voiced their own frustrations that Incognito didn't live up to its name.

Businesses

Helium, the a16Z-backed Crypto Unicorn, Spars With Binance Over Delisting (forbes.com) 21

A token created by Helium, a much-hyped crypto project hailed as one of the best use cases of Web3 technology, will be partially delisted from major cryptocurrency exchange Binance amid reports of poor revenue and misleading marketing at its parent company, as well as the network's abandonment of its native blockchain last month. From a report: In a blog post Thursday, Binance said that it would cease trading Helium Network Tokens, or HNT, with multiple trading pairs over the next week, effectively preventing token holders from exchanging HNT for Bitcoin or other tokens. Binance "strongly advised" people to close out their positions, or else it would "conduct an automatic settlement and cancel all pending orders" relating to HNT and its trading pairs on October 12. Users may continue to spot trade with the HNT/Binance USD (Binance's stablecoin, BUSD) pair.

In a statement to Forbes, Binance spokesperson Jessica Jung said the exchange periodically reviews "each digital asset we list to ensure that it continues to meet a high level of standard. When a coin or token no longer meets this standard or there are changes in the industry, we conduct a more in-depth review and potentially delist it in order to protect our users." In response, Scott Sigel, COO at the Helium Foundation, which manages the community, said in a statement to Forbes that "there is no basis for Binance to delist several HNT pairs. There has been no change to the integrity of HNT and it continues to meet all of the standards the exchange sets."

Television

Showtime May Be Merged Into Paramount+ (cnbc.com) 40

"Paramount Global executive David Nevins, who has run the premium network Showtime since 2016, is leaving the company at the end of year," reports CNBC. According to the report, it may help give the media conglomerate "more flexibility to potentially merge Showtime into Paramount+." From the report: Along with his departure, Paramount Global is restructuring Showtime in ways that could give the company flexibility to effectively end Showtime as it's existed for decades -- as an independent premium cable network churning out prestige hits such as "Dexter," "Weeds," "Billions," "Homeland" and "Yellowjackets." Paramount Global announced Thursday that it's moving Showtime's network business under the leadership of Chris McCarthy, who runs other linear cable networks such as MTV and Comedy Central, and the streaming service under Tom Ryan, who runs Paramount Streaming.

The moves come as the company is considering the idea of merging Showtime into Paramount+ and using the network's hit programming to fuel Paramount+ subscriptions, according to people familiar with the matter. The company's goal is to have Paramount+ be one of the five largest global streaming services, along with Warner Bros. Discovery's HBO Max, Amazon's Prime Video, Netflix and Disney+, said the people, who asked not to be named because the discussions are private. No decisions about Showtime's future have been made, and no changes are imminent, the people said.

One obstacle to pushing Showtime together with Paramount+ is existing pay TV distributor agreements. The Wall Street Journal reported last month that Paramount has discussed simply shuttering the standalone Showtime network with at least one pay-TV partner. Another idea under consideration by Paramount Global executives is to move Paramount+ originals and movies to Showtime, effectively making Showtime a mirror to Paramount+'s content that doesn't appear on other TV networks, two of the people said. That could assuage pay-TV providers, who could adjust pricing against the merged streaming product. [...] Eliminating Showtime as an independent entity would also come with cost savings from head count reductions, such as Nevins' departure, and technology and marketing duplications.

Businesses

Fandom Buys TV Guide, Metacritic, GameSpot and Other Brands For About $50 Million In Cash (variety.com) 22

Fandom is rolling up a suite of entertainment and gaming content properties -- including TV Guide and Metacritic -- in a deal with digital-marketing company Red Ventures worth about $50 million. Variety reports: San Francisco-based Fandom acquired GameSpot, Metacritic, TV Guide, GameFAQs, Giant Bomb, Cord Cutters News and Comic Vine under the deal. The sites collectively attract 46 million monthly active users, according to Fandom. Financial terms of the pact were not disclosed; a source familiar with the deal pegged it "in the mid-eight figures," with Fandom paying the roughly $50 million for the properties in cash. Red Ventures had acquired TV Guide, Metacritic and GameSpot in 2020 as part of its $500 million deal to buy the CNET Media Group from Paramount Global.

Founded in 2004, Fandom today hosts more than 250,000 user-curated wiki pages spanning pop culture, gaming, TV and film -- reaching some 300 million monthly active users. Fandom was founded by Jimmy Wales, Wikipedia co-founder, and entrepreneur Angela Beesley Starling. In 2018, Fandom was sold to a company backed by venture-capital firm TPG headed by Jon Miller.

The latest deal continues Fandom's expansion beyond its wiki-based roots. In 2018, Fandom acquired ScreenJunkies, producers of the popular "Honest Trailer" series, from now-defunct digital media company Defy Media. The company acquired Curse Media in 2019 which brought together gaming wikis with integrated digital gaming tools. In 2021, Fandom acquired Fanatical, a an online video-game retailer. Fandom Productions, the content arm of Fandom, will house GameSpot, TV Guide and Metacritic, along with the Honest Trailers team and the weekly video news program "The Loop."

PlayStation (Games)

PlayStation Boss Jim Ryan 'Flew To Brussels' To Voice Concerns To EU Over Xbox's Activision Deal (videogameschronicle.com) 22

PlayStation boss Jim Ryan reportedly flew to Brussels last month to meet with European Union regulators currently scrutinizing Microsoft's proposed acquisition of Activision Blizzard. The visit was first reported by Dealreporter sources (paywalled). Video Game Chronicle reports: As has been widely publicized in recent weeks, PlayStation's concerns over the deal are around the future release arrangements for the Call of Duty series -- which is regularly PlayStation's annual best-seller -- and whether it will be pulled from their platforms. Google is also said to have voiced its concerns to EU regulators, according to the same sources.

Last month, Xbox boss Phil Spencer said Microsoft had committed to making Call of Duty available on PlayStation for "several more years" after Sony's current marketing deal with Activision expires. However, SIE CEO Ryan, who is reportedly seeking access to future Call of Duty games on equal terms and in perpetuity, responded publicly by calling Microsoft's proposal for keeping the series on PlayStation consoles "inadequate on many levels."
"By giving Microsoft control of Activision games like Call of Duty, this deal would have major negative implications for gamers and the future of the gaming industry," Sony claimed. "We want to guarantee PlayStation gamers continue to have the highest quality gaming experience, and we appreciate the CMA's focus on protecting gamers."
Australia

Pandemic Sends Australia's Gambling Problem Online (nbcnews.com) 10

Already the world's biggest gambling nation in terms of loss per person, Australia has seen a shift in betting behavior since the pandemic-forced closure of public venues. From a report: Gamblers' losses on poker machines shrank for the first time during the pandemic, but at a rate far slower than an unprecedented increase in money lost on apps, data showed. That means more players are being exposed to an industry that is harder to regulate than traditional gambling. Australia's gambling industry has been in the spotlight in recent years, with public inquiries lashing its biggest casino operators due to lapses in money laundering protections. Online gambling has also been the focus of inquiries, but with its increasing prevalence, the government has answered consumer advocates with a pledge to take a deeper look.

App providers are mostly foreign such as London-listed Flutter Entertainment -- owner of the most popular betting app in Australia, Sportsbet -- and Entain, owner of third-ranked app Ladbrokes. Unlike venues, they benefit from marketing methods such as text message-based promotions falling outside the scope of gambling advertising restrictions. Gamblers' loss on poker machines was A$11.4 billion ($7.3 billion USD) in 2021, shrinking A$1.1 billion or 17% from 2019, the year before lockdowns began, showed data from Monash University's School of Public Health & Preventive Medicine. But gamblers' loss in online sports betting swelled A$3.2 billion or 80% to A$7.1 billion in the same period, showed figures supplied by industry consultancy H2 Gambling Capital, which excluded credit often rewarded in promotions.

AI

Software Robots Are Gaining Ground In White-Collar Office World (bloomberg.com) 23

"First they came for factory jobs. Then they showed up in service industries. Now, machines are making inroads into the kind of white-collar office work once thought to be the exclusive preserve of humans," write Alexandre Tanzi and Reade Pickert via Bloomberg. An anonymous reader shares an excerpt from the report: It's not just corporate giants, capable of spending millions of dollars to develop their own technologies, that are getting in on the act. One feature of the new automation wave is that companies like Kizen have popped up to make it affordable even for smaller firms. Based in Austin, Texas, Kizen markets an automated assistant called Zoe, which can perform tasks for sales teams like carrying out initial research and qualifying leads. Launched a year ago, it's already sold more than 400,000 licenses. "Our smallest customer pays us $10 a month and our largest customer pays us $9.5 million a year,'' says John Winner, Kizen's chief executive officer. There are plenty of other ambitious companies cashing in on the trend, and posting steep increases in revenue -- like UiPath Inc., a favorite of star investment manager Cathie Wood, as well as Appian Corp. and EngageSmart Inc. Alongside the growth of AI and what economists call "robotic process automation" -- essentially, when software performs certain tasks previously done by humans -- old-school automation is still going strong too.

The number of robots sold in North America hit a new record in the first quarter of 2022, according to the Association for Advancing Automation. The World Economic Forum predicts that by 2025, machines will be working as many hours as humans. What all of this innovation means for the world's workers is one of the key open questions in economics. The upbeat view says it's tasks that get automated, not entire jobs -- and if the mundane ones can be handled by computers or robots, that should free up employees for more challenging and satisfying work. The downside risk: occupations from sales reps to administrative support, could begin to disappear -- without leaving obvious alternatives for the people who earned a living from them. That adds another employment threat for white-collar workers who may already be vulnerable right now to an economic downturn, largely because so many got hired in the boom of the past couple of years.

KC Harvey Environmental, a consultancy based in Bozeman, Montana that works with businesses and governments on environmental issues, is one of Kizen's clients. It uses the software to automate document control -- for example, archiving and delivering new contracts to the right places and people. "A new project probably took our accounting group and project management team a day," says Rio Franzman, KC Harvey's chief operating officer. "This now probably streamlines it down to about an hour." The firm employs about 100 people and "we didn't lose any'' as a result of automation, he says. "What it did allow is for the reallocation of time and resources to more meaningful tasks." KC Harvey is now working with Kizen to bring AI into its marketing, too, with a partly automated newsletter among other projects. Some of the biggest firms at the forefront of automation also say they've been able to do it without cutting jobs.

Engineering giant Siemens AG says it's automated all kinds of production and back-office tasks at its innovative plant in Amberg, Germany, where it makes industrial computers, while keeping staffing steady at around 1,350 employees over several decades. The firm has developed a technology known as "digital twinning," which builds virtual versions of everything from specific products to administrative processes. Managers can then run simulations and stress-tests to see how things can be made better. "We're not going to automate people out of the process," says Barbara Humpton, CEO of Siemens USA. "By optimizing automation systems, and by using digital tools and AI, workers have increased productivity at Amberg by more than 1,000%." [...] Whatever the outcome, it's unlikely to allay the deep unease that the idea of automation triggers among workers who feel their jobs are vulnerable. With the rise of AI, that group increasingly includes white-collar employees.

Advertising

Podcasters Are Buying Millions of Listeners Through Mobile-Game Ads (bloomberg.com) 17

An anonymous reader quotes a report from Bloomberg: Podcasters are always hunting for new, flashy places to promote their shows, ranging from billboards to floats in parades to airplane banners. Some networks, though, have uncovered a less-glamorous, yet highly effective way to gain millions of bankable listeners: loading up mobile games with a particular kind of ad. Each time a player taps on one of these fleeting in-game ads -- and wins some virtual loot for doing so -- a podcast episode begins downloading on their device. The podcast company, in turn, can claim the gamer as a new listener to its program and add another coveted download to its overall tally. The practice allows networks to amass downloads quickly by tapping into a wellspring of hyperactive video-game users. But it also calls into question who a legitimate podcast listener is and what length of time should be required to count as a download.

Podcasts typically rely on downloads as the primary metric for ad sales. When an individual taps on an in-app play button on their mobile device, an entire episode begins downloading so they can listen to it even in the absence of a good internet connection -- say, on an airplane or in the subway. An episode's ads are inserted at that moment of download, meaning that even if a consumer only listens to 10 minutes of a 30-minute show, the mid-roll ad at the 15-minute mark is often ready to be heard -- not to mention, counted by the sales team. To date, the podcast industry has said next to nothing about its embrace of this video-game strategy.
"Not all impressions are created equal," said Larry Chiagouris, a marketing professor at Pace University. "I'm not saying [this tactic is] not ethical or illegal, but it raises issues. If someone is trying to play a game and that's the purpose of this interaction, they may just be eager to play the game and are not that interested in the information being shared."
Technology

Walmart Is Making Its First Move Into the Metaverse With Virtual Worlds on Roblox (bloomberg.com) 27

Walmart is making its first move into the metaverse. Starting Monday, the retailer will unveil two immersive experiences on Roblox's virtual platform. Walmart Land will feature fashion, beauty and entertainment items, while Walmart's Universe of Play will showcase toys, the company announced. From a report: Walmart follows companies from Nike to VF in a bid to get consumers' attention via virtual universes, where elements of video conferencing, gaming, social media and e-commerce blend together. Roblox has a community of more than 52 million daily users, and many of them are younger people, who are particularly valuable targets for corporate powerhouses.

"This is the first major initiative that we have in the metaverse," William White, Walmart's chief marketing officer, said in an interview. "This is another step for us in reaching our customers in unexpected ways." Walmart Land will offer a virtual store where Roblox users can use badges and coins earned on the platform to buy merchandise for their avatars. There will also be a "physics-defying Ferris wheel" that provides a bird's-eye view of the virtual world, plus unlockable tokens and badges that can be earned in games and competitions.

Businesses

4-Day Workweek Brings No Loss of Productivity, Companies in Experiment Say (nytimes.com) 87

More than 70 companies in Britain are undergoing a six-month experiment in which their employees get a paid day off each week. So far, most companies say it's going well. SpzToid shares a report: Most of the companies participating in a four-day workweek pilot program in Britain said they had seen no loss of productivity during the experiment, and in some cases had seen a significant improvement, according to a survey of participants published on Wednesday. Nearly halfway into the six-month trial, in which employees at 73 companies get a paid day off weekly, 35 of the 41 companies that responded to a survey said they were "likely" or "extremely likely" to consider continuing the four-day workweek beyond the end of the trial in late November. All but two of the 41 companies said productivity was either the same or had improved. Remarkably, six companies said productivity had significantly improved. Talk of a four-day workweek has been around for decades.

In 1956, then-Vice President Richard M. Nixon said he foresaw it in the "not too distant future," though it has not materialized on any large scale. But changes in the workplace over the coronavirus pandemic around remote and hybrid work have given momentum to questions about other aspects of work. Are we working five days a week just because we have done it that way for more than a century, or is it really the best way? Some leaders of companies in the trial said the four-day week had given employees more time to exercise, cook, spend time with their families and take up hobbies, boosting their well-being and making them more energized and productive when they were on the clock. Critics, however, worried about added costs and reduced competitiveness, especially when many European companies are already lagging rivals in other regions. More than 3,300 workers in banks, marketing, health care, financial services, retail, hospitality and other industries in Britain are taking part in the pilot, which is one of the largest studies to date, according to Jack Kellam, a researcher at Autonomy, a think tank that is one of the organizers of the trial.

The Internet

Comcast Promises Huge Boost To Cable Upload Speeds By End of 2023 (arstechnica.com) 80

Comcast announced today that it has tested "the final technical component necessary to deliver multi-gigabit symmetrical speeds" and said it's on track to deliver multi-gigabit download and upload speeds to at least some cable customers "before the end of 2023." The test using Broadcom equipment delivered download speeds of 6Gbps and uploads of 4Gbps, Comcast said. Ars Technica reports: Cable broadband lags far behind fiber-to-the-home in upload speeds, a frustration for many Internet users who lack access to fiber. Comcast and other cable companies have been promising a major upgrade to uploads for years without ever saying exactly when the improvement would reach customers. Comcast is starting to get a bit more specific -- although that "end of 2023" promise doesn't specify what percentage of customers will get the upgrade when it first rolls out. Upgrading Comcast's entire cable territory is expected to be a multi-year process.

"With this test completed, Comcast will launch live trials later this year, and will begin delivering 10G-powered multi-gig symmetrical services to customers before the end of 2023," Comcast said. (10G is a marketing term the cable industry uses to describe 10-gigabit-per-second speeds.) Comcast did not say what it will charge customers for multi-gigabit symmetrical service or whether the upgrade will be paired with any changes to the data cap imposed in most of Comcast's territory. Although the upgrade won't require replacing the cables going into customers' homes, getting all the right equipment in place throughout Comcast's network will take a few years.

Desktops (Apple)

Document Foundation Starts Charging For 'Free' LibreOffice on Apple App Store (theregister.com) 59

The Document Foundation, the organization that tends the open source productivity suite LibreOffice, has decided to start charging for one version of the software. The Register reports: LibreOffice is a fork of OpenOffice and is offered under the free/open source Mozilla Public License Version 2.0. A Monday missive from the Document Foundation reveals the org will begin charging 8.99 euros for the software -- but only when sold via Apple's Mac App Store. That sum has been styled a "convenience fee ... which will be invested to support development of the LibreOffice project."

The foundation suggests paying up in the Mac App Store is ideal for "end users who want to get all of their desktop software from Apple's proprietary sales channel." Free downloads of LibreOffice for macOS from the foundation's site will remain available and arguably be superior to the App Store offering, because that version will include Java. The foundation argued that Apple does not permit dependencies in its store, so it cannot include Java in the 8.99 euro offering. The version now sold in the App Store supersedes a previous offering provided by open source support outfit Collabora, which charged $10 for a "Vanilla" version of the suite and threw in three years of support.
The foundation's marketing officer Italo Vignoli said the change was part of a "new marketing strategy."

"The Document Foundation is focused on the release of the Community version, while ecosystem companies are focused on a value-added long-term supported versions targeted at enterprises," Vignoli explained. "The distinction has the objective of educating organizations to support the FOSS project by choosing the LibreOffice version which has been optimized for deployments in production and is backed by professional services, and not the Community version generously supported by volunteers."

"The objective is to fulfil the needs of individual and enterprise users in a better way," Vignoli added, before admitting "we know that the positive effects of the change will not be visible for some time. Educating enterprises about FOSS is not a trivial task and we have just started our journey in this direction."
Facebook

Mark Zuckerberg's $71 Billion Wealth Wipeout Puts Focus On Meta's Woes (bloomberg.com) 83

An anonymous reader quotes a report from Bloomberg: Mark Zuckerberg's pivot into the metaverse has cost him dearly in the real world. Even in a rough year for just about every US tech titan, the wealth erased from the chief executive officer of Meta stands out. His fortune has been cut in half and then some, dropping by $71 billion so far this year, the most among the ultra-rich tracked by the Bloomberg Billionaires Index. At $55.9 billion, his net worth ranks 20th among global billionaires, his lowest spot since 2014 and behind three Waltons and two members of the Koch family.

It was less than two years ago when Zuckerberg, 38, was worth $106 billion and among an elite group of global billionaires, with only Jeff Bezos and Bill Gates commanding bigger fortunes. His wealth swelled to a peak of $142 billion in September 2021, when the company's shares reached as high as $382. The following month, Zuckerberg introduced Meta and changed the company's name from Facebook And it's been largely downhill from there as it struggles to find its footing in the tech universe.

Its recent earnings reports have been dismal. It started in February, when the company revealed no growth in monthly Facebook users, triggering a historic collapse in its stock price and slashing Zuckerberg's fortune by $31 billion, among the biggest one-day declines in wealth ever. Other issues include Instagram's bet on Reels -- its answer to TikTok's short-form video platform -- even though it's worth less in advertising revenue, while the industry overall has been affected by lower marketing spending due to concerns over an economic slowdown. The stock is also being dragged down by the company's investments in the metaverse, said Laura Martin, senior internet analyst at Needham & Co. Zuckerberg has said he expects the project will lose "significant" amounts of money in the next three to five years. In the meantime, Meta "has to get these users back from TikTok," said Martin. It's also hampered by "excessive regulatory scrutiny and intervention," she said.
Meta is "down about 57% this year, far more than the declines of 14% for Apple, 26% for Amazon and 29% for Google parent Alphabet," adds Bloomberg. "Meta is even narrowing the gap in 2022 losses with Netflix, which is down about 60%."
Businesses

Twilio To Cut 11% of Staff After Growing 'Too Fast' (bloomberg.com) 11

Twilio, a maker of customer communication and marketing software, said it will cut about 11% of jobs and restructure the company in a push for profitability after a period of rapid expansion. From a report: Sales strategy, research, and administrative staff will be most affected by the workforce reductions, Chief Executive Officer Jeff Lawson wrote in a letter to employees Wednesday. The shares rose 0.5% in New York. "Twilio has grown at an astonishing rate over the past couple years. It was too fast," Lawson wrote. "At our scale, being profitable will make us stronger." San Francisco-based Twilio, best known for its direct-to-consumer text messaging services, is betting on an expansion into the wider market for customer service tools in a bid to compete more forcefully with Salesforce and Adobe. Recent acquisitions have included identity verifier Boku Identity, toll-free messaging service Zipwhip and customer data provider Segment. Its workforce has jumped over the past year, growing to 8,510 employees at the end of June from 6,334 employees a year earlier.
Twitter

Twitter Whistleblower Peiter 'Mudge' Zatko Testifies To Congress (npr.org) 55

Just before shareholders voted to approve a $44 billion deal with Elon Musk to buy the company, Twitter whistleblower Pieter Zatko was in Washington testifying before the Senate Judiciary Committee about alleged security flaws. NPR highlights the main takeaways from the hearing: Twitter executives put profits ahead of security, leaving the door open to infiltration by foreign agents and hackers, the company's former head of security told Congress on Tuesday. "Twitter leadership is misleading the public, lawmakers, regulators and even its own board of directors," Peiter Zatko testified during a Senate Judiciary Committee hearing. "The company's cybersecurity failures make it vulnerable to exploitation, causing real harm to real people." [...] In Tuesday's hearing, which ran for more than two hours, Zatko painted a portrait of a company plagued by widespread security issues and unable to control the data it collects. Calm and measured, he stuck closely to his expertise, unpacking technical details of Twitter's systems with real-world examples of how information held by the company could be misused. "It's not far-fetched to say that an employee inside the company could take over the accounts of all of the senators in this room," he warned.

Zatko alleged the company is highly vulnerable to abuse by foreign intelligence agents -- but is unable or unwilling to root them out. A week before his firing in January, he testified, the FBI told Twitter's security team that at least one agent from China's Ministry of State Security was on the company's payroll. [...] Zatko also alleged that the Indian government had placed an agent inside Twitter. He testified that Twitter struggled to identify potential infiltration by foreign agents and typically was only able to do so when notified by outside agencies.

Zatko placed the blame for Twitter's vulnerabilities squarely on a leadership team that he described as reactive, incompetent, and motivated by profit over safety. Executives, he alleged, ignored warnings from him and other employees over Twitter's security flaws because they "lacked the competency to understand the scope of the problem." Zatko described a company culture that avoided negativity and alleged executives presented selectively favorable information to the board. He accused leadership of prioritizing business over security, quoting writer Upton Sinclair: "It is difficult to get someone to understand something when his salary depends on him not understanding something."

When Zatko joined Twitter, he said, he was struck that the company kept having recurring security lapses -- "the same amount, year after year." The root cause, he told senators, is that Twitter doesn't understand how much data it collects, why it collects it, and how it's supposed to be used. That includes users' phone numbers, IP addresses, emails, the devices they use, their locations and other identifying information. What's more, he said, around half the employees at Twitter have access to that data. "It doesn't matter who has keys if you don't have any locks on the doors," he said. "The concern there is anybody with access inside Twitter...could go rooting through and find this information and use it for their own purposes." Zatko said that also raised red flags that Twitter may not be complying with its 2011 agreement with the FTC over misuse of email addresses that it told users it was collecting for security reasons, but then used for marketing. (In May, the FTC fined Twitter $150 million for violating that agreement.) "How come we keep making these same mistakes?" Zatko said. "What is it that we are telling the FTC as Twitter that is incorrect?"

AI

Actors Worry That AI is Taking Centre Stage 110

A survey this year by Equity, the UK union for actors and other performing arts workers, found that 65 per cent of members thought AI posed a threat to employment opportunities in the sector, rising to 93 per cent of audio artists. This wasn't just an amorphous fear about the future: more than a third of members had seen job listings for work involving AI and almost a fifth had undertaken some of this work. From a report: A range of AI start-ups are developing tools for use in film and audio, from making actors look and sound younger to creating AI voices that can be used for marketing campaigns, consumer assistants or even audiobook narration. Audio is such a popular medium now that companies need lots of it, but human actors are expensive and nowhere near as flexible as an AI voice, which can be made to say anything at the push of a button. These companies typically hire actors to provide hours' worth of audio which can then be turned into a voice-for-hire.

VocaliD, for example, offers a range of voices such as "Malik" ("warm, soothing, urban") "Terri" ("educated, optimistic, sophisticated") and "AI Very British Voice" ("trustworthy, warm, calm.") Sonantic, another AI company which was just acquired by Spotify, creates voices that can laugh, shout or cry. Its voices are often used by video game companies in the production process so they can play around with different scripts. They're not as good as humans, but they don't need to be. Industry experts say no one is going to use AI to narrate the audiobook of a bestselling novel, but there is still a market to be tapped in the vast number of lower-profile books that are published or self-published every year. Audiobook.ai, for example, says it can create an audiobook in 10 minutes with 146 voices to choose from in 43 languages.
Businesses

Apple Plans To Double Its Digital Advertising Business Workforce (ft.com) 23

Apple plans to nearly double the workforce in its fast-growing digital advertising business less than 18 months after it introduced sweeping privacy changes that hobbled its bigger rivals in the lucrative industry. Financial Times: The iPhone maker has about 250 people on its ad platforms team, according to LinkedIn. According to Apple's careers website, it is looking to fill another 216 such roles, almost quadruple the 56 it was hiring in late 2020. Apple disputed the figures but declined to elaborate. The digital ads industry has been on edge about Apple's advertising ambitions since it launched privacy rules last year that disrupted the $400bn digital ads market, making it difficult to tailor ads to Apple's 1bn-plus iPhone users.

Since the policy was introduced, Facebook parent Meta, Snap and Twitter have lost billions of dollars in revenue -- and far more in market valuation, although there have been additional contributing factors. "It was really almost like a global panic," said Jade Arenstein, global service lead at Incubeta, a South Africa-based marketing performance company, of the impact of Apple's changes. Meanwhile, Apple's once-fledgling ads business is now "incredibly fast-growing," according to a job ad. The business has gone from just a few hundred million dollars of revenue in the late 2010s to about $5bn this year, according to research group Evercore ISI, which expects Apple to have a $30bn ads business within four years.

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