WebProBusiness https://www.webpronews.com/business/webprobusiness/ Breaking News in Tech, Search, Social, & Business Wed, 11 Sep 2024 09:44:43 +0000 en-US hourly 1 https://wordpress.org/?v=6.6.2 https://i0.wp.com/www.webpronews.com/wp-content/uploads/2020/03/cropped-wpn_siteidentity-7.png?fit=32%2C32&ssl=1 WebProBusiness https://www.webpronews.com/business/webprobusiness/ 32 32 138578674 Boeing’s 737 Max Production Hits Another Delay: Suppliers Brace for Extended Disruptions https://www.webpronews.com/boeings-737-max-production-hits-another-delay-suppliers-brace-for-extended-disruptions/ Wed, 11 Sep 2024 09:44:43 +0000 https://www.webpronews.com/?p=607820 Boeing has hit another snag in its effort to ramp up production of its popular 737 Max jet, a development that’s reverberating across the aerospace supply chain. According to industry sources reported by Reuters, the aerospace giant has informed suppliers that it is pushing back its key production milestone for the 737 Max by six months. Initially set to reach a production rate of 42 jets per month by September 2024, that target has now been delayed until March 2025. This marks another chapter in the ongoing struggle for Boeing, which has faced a series of challenges related to safety, regulatory hurdles, and now supply chain disruptions.

Delayed Milestone: A Six-Month Setback

The delay of Boeing’s production milestone has created ripples throughout its supply chain, frustrating suppliers and heightening uncertainty in an already complex global supply chain environment. Sources familiar with the matter indicated that the revised schedule will have Boeing producing 42 737 Max jets per month by March 2025, rather than the original goal of September 2024. For many suppliers, this change presents operational challenges. One industry source close to Boeing commented, “This shift isn’t just about Boeing; it’s about the entire supply ecosystem that relies on Boeing’s projections to plan their production timelines.”

Spirit AeroSystems, Boeing’s largest fuselage supplier, has already adjusted its output to accommodate the change. In August, the company lowered its fuselage production from 31 to 21 per month, reflecting the adjusted master schedule communicated by Boeing. Joe Buccino, a spokesperson for Spirit AeroSystems, explained, “We make adjustments in accordance with our agreements with Boeing, but such changes do create complexities when it comes to managing our own supply chain.”

The need for such delays stems from ongoing safety and regulatory issues, including the well-publicized incident in January when a door panel blew off mid-flight during a 737 Max test flight. This has led to additional regulatory scrutiny, further complicating Boeing’s efforts to accelerate production. As one industry analyst noted, “Boeing is in a constant dance with regulators, and every time there’s a safety incident, the choreography becomes more intricate and challenging.”

Supply Chain Strain: Impact on Smaller Suppliers

While large suppliers like Spirit AeroSystems have the flexibility to adjust, smaller suppliers are facing more severe challenges. Many smaller firms now find themselves grappling with the financial burden of slowing production while maintaining operations. These firms often carry the costs of materials and labor as work-in-progress inventories build up. One source within a smaller supplier expressed frustration, saying, “We’re carrying costs for parts that won’t be needed for another six months. That’s tough on a small business.”

Boeing’s revised schedule is leaving suppliers with difficult decisions about how to navigate the next several months. Some are exploring options to diversify their client base, looking to competitors such as Airbus or Embraer to offset the reduced demand from Boeing. Industry insiders suggest that the extended delays may cause some suppliers to rethink their long-term relationships with Boeing, opting instead for more stable production timelines from other manufacturers. “If Boeing can’t provide predictability, some suppliers may be forced to shift their focus to other OEMs like Airbus, which has its own challenges but at least maintains consistent communication,” said Addison Schonland, an aviation analyst.

Internal Moves: Boeing’s Organizational Restructuring

In response to the ongoing production challenges, Boeing is also reorganizing its internal teams to better coordinate between operations and contracts. One source familiar with Boeing’s operations mentioned that Boeing Commercial Airplanes is consolidating its operations and contracts teams to streamline communication between the company and its suppliers. The goal is to reduce the miscommunication that has plagued production schedules in the past and improve overall supply chain management.

Boeing’s leadership acknowledges the complexity of balancing production with supplier readiness. In a statement during Boeing’s second-quarter earnings call, CFO Brian West remarked, “Our objective remains to keep the supply chain paced ahead of final assembly to support stability. But we continue to make adjustments as needed and manage supplier by supplier based on inventory levels.”

Industry Implications: A Broader Aerospace Struggle

Boeing’s production struggles aren’t happening in isolation. Its chief competitor, Airbus, is also facing supply chain issues, though it has been more optimistic about meeting revised targets. Airbus has set a goal of delivering 770 planes by the end of 2024, but CEO Guillaume Faury acknowledged that the target remains a “big challenge” due to global parts shortages. The aerospace industry as a whole is navigating a post-pandemic environment marked by surging demand but constrained by supply chain disruptions and labor shortages.

For Boeing, the stakes are high. The 737 Max remains its best-selling jet, and delays in increasing production rates threaten to erode its competitive edge. Furthermore, labor tensions are brewing, with the president of Boeing’s largest union indicating that members may reject a contract deal, potentially leading to a strike at Boeing’s facilities near Seattle. If a strike occurs, it could further delay Boeing’s production targets and exacerbate supply chain issues.

The Road Ahead: Will Boeing Recover?

As Boeing grapples with its production delays and regulatory challenges, the road to recovery looks long and uncertain. Industry insiders believe that Boeing will need to navigate not just its internal production challenges but also external pressures from suppliers, regulators, and labor unions. A strike or further safety incidents could delay the 737 Max program even further, leaving Boeing in a precarious position in the competitive aerospace market.

Boeing’s ability to maintain strong relationships with its suppliers will be critical in the coming months. As one supplier put it, “We’re all in this together, but Boeing needs to ensure that we can weather this storm alongside them. If not, they risk losing more than just time—they could lose the trust of key partners.”

In a high-stakes industry where timing and reliability are everything, Boeing must find a way to get its production back on track, or it may find itself losing ground to its European competitor. For now, all eyes remain on March 2025, the next critical milestone for the 737 Max program.

]]> 607820 Boeing’s Labor Deal Faces Rejection as Workers Threaten Strike: ‘Employees Feel Shafted,’ Say Union Leaders https://www.webpronews.com/boeings-labor-deal-faces-rejection-as-workers-threaten-strike-employees-feel-shafted-say-union-leaders/ Tue, 10 Sep 2024 06:39:28 +0000 https://www.webpronews.com/?p=607771 As the Boeing Machinists’ union prepares to vote on a new labor contract this week, tensions have hit a boiling point, with widespread dissatisfaction among Boeing’s 33,000 machinists. The tentative agreement, announced on Sunday, promises a 25% wage increase over the next four years, reduced health care premiums, and a signing bonus. However, many workers say the deal doesn’t go far enough to address their financial needs and recover losses from a decade of concessions, setting the stage for a potential strike that could bring Boeing’s production lines to a standstill.

Union President Jon Holden, who leads the International Association of Machinists (IAM) District 751, expressed a grim outlook ahead of Thursday’s vote. “The response from people is it’s not good enough,” Holden told The Seattle Times. “Right now, I think it will be voted down, and our members will vote to strike.”

The Contract That Sparked the Unrest

At the heart of the discontent is the gap between worker expectations and the actual terms of the contract. The proposed wage increases — 25% over four years — are seen by many as inadequate in light of inflation and a decade of stagnant wages. Boeing employees, particularly those in Seattle and Everett, have seen the cost of living soar while their wages remained stagnant. “We deserve more than what’s being offered. After 10 years of losing ground, we’re just trying to catch up,” one 34-year Renton mechanic said.

Francis King, a machinist with 37 years of experience, echoed these sentiments, stating, “Bottom line, it’s absolutely unacceptable. The inflation rate’s at 4%, and they’re offering the same for the second and third years.” Workers are particularly angered by the fact that the performance-based bonus program, known as the Aerospace Machinists Performance Program (AMPP), would be eliminated under the new contract. This bonus was often a critical part of employee compensation, providing up to 4.6% in additional annual income. “They’ve taken away our incentive bonuses, and that’s going to hurt,” Rob Davis, a mechanic in Everett, explained.

A Decade of Concessions

Much of the frustration stems from the painful concessions Boeing workers agreed to in the last decade. In 2014, the IAM negotiated a contract extension that increased healthcare costs and froze pensions, which left many workers feeling betrayed. “It’s hard to come off 10 years when you lost so many things that were critical,” Holden said in reference to the 2014 contract, acknowledging the lasting bitterness from that period.

Workers were particularly disappointed by the lack of a pension restoration in the new agreement. “You need to get that pension back,” King added. “Some other companies doing the same work have restored pensions, so it’s possible.” Many Boeing employees feel the pension plan was an essential part of their financial future, and its absence in this new deal leaves them uncertain about their long-term security. “If they can pay a CEO $35 million a year, that’s what, the best they can do?” lamented Alexander, another union machinist.

Boeing’s Struggles Amid Labor Tensions

Boeing itself is facing an array of internal and external challenges. The company is still recovering from the fallout of its 737 MAX crisis and is now grappling with significant production issues and regulatory scrutiny. Its credit rating teeters just above junk bond status, and a strike could spell disaster for the company’s already fragile financial state. New CEO Kelly Ortberg, who took over in August, has been tasked with steering Boeing through these challenges, but the looming threat of a strike could derail those efforts.

Ortberg personally intervened during the labor negotiations to secure a commitment on job security, promising that Boeing’s next plane would be built in the Puget Sound region if it were launched during the contract’s four-year term. “He did give a commitment on job security,” Holden said, acknowledging Ortberg’s role in the talks. “But now we have work to do to make it worth something.”

Still, many workers remain skeptical. As Francis King pointed out, “We’re just not seeing enough in this contract to make us feel secure about our future.” Others worry that Boeing’s recent quality issues — including a door plug incident on an Alaska Air 737 MAX — are indicative of deeper problems within the company that won’t be solved by a new contract alone.

Strike Preparations Are Underway

If union members vote down the contract, a strike could begin as early as Friday, and workers are already preparing for that possibility. In Everett, Renton, and other Boeing locations, machinists have been holding break-time marches to demonstrate their dissatisfaction. “There’s a lot of frustration in the building,” said Brandon Felton, a machinist who participated in the marches. “We’re all together on this, and we’re ready to walk.”

Leaflets circulating through Boeing’s factories encourage workers to reject the deal and authorize a strike. One leaflet, viewed by Bloomberg, urged machinists to “Stand strong” and push for a 40% wage increase, along with the restoration of pensions and a seat on Boeing’s board. “We deserve a fair deal,” the leaflet declared, reflecting the sentiments of many Boeing employees.

The $3,000 signing bonus offered in the current contract has also been a point of contention, with workers recalling the $15,000 bonus they received in 2014. “A $3,000 bonus in 2024 is laughable,” said one Boeing employee, comparing it to inflation and rising costs. “Every employee I’ve spoken to said they are voting NO,” added another, emphasizing the collective anger over the proposed contract terms.

The Impact of a Potential Strike

A strike at Boeing could have far-reaching consequences, not just for the company but for the broader U.S. economy. Boeing employs more than 140,000 people globally and plays a critical role in both the commercial and defense sectors. If the strike proceeds, Boeing’s production of the 737 MAX and 777X aircraft would come to a halt, causing disruptions across the entire aerospace industry. The company would also face mounting debt, exacerbating its already precarious financial situation.

A strike would also be a significant setback for CEO Kelly Ortberg, who was brought in to stabilize Boeing after years of turmoil. His ability to negotiate labor peace and keep production running smoothly is crucial to Boeing’s recovery, particularly as it faces increased scrutiny from regulators and customers. A protracted strike could delay Boeing’s plans to ramp up production of its best-selling jets and further weaken its competitive position in the global market.

Will Workers Accept the Deal?

For now, all eyes are on Thursday’s vote. While union leaders, including Holden, are recommending that members accept the contract, many workers feel that the deal doesn’t go far enough to address their financial concerns and restore the benefits lost over the past decade. As machinist Francis King succinctly put it, “We need to hold strong. This deal isn’t enough, and we deserve better.”

Should the workers vote to strike, Boeing will not only face the challenge of resolving the labor dispute but also the financial and operational consequences of a walkout that could cripple its production lines and stall its long-term recovery efforts.

In the words of Jon Holden, “It’s in the members’ hands now. We will use the power they give us to fight for more.”

]]> 607771 Boeing Avoids Strike With Historic Union Deal https://www.webpronews.com/boeing-avoids-strike-with-historic-union-deal/ Mon, 09 Sep 2024 10:15:05 +0000 https://www.webpronews.com/?p=607690 Boeing, already grappling with production challenges and financial woes, has successfully avoided a potentially crippling strike by reaching a tentative agreement with the International Association of Machinists and Aerospace Workers (IAM). This deal, described by union leaders as “historic,” marks a critical turning point for the company as it navigates ongoing operational issues and a volatile aerospace market.

The agreement includes a 25% wage increase over the next four years, job security guarantees, and significant improvements in healthcare benefits. Notably, Boeing has committed to building its next commercial airplane in the Puget Sound region of Washington, ensuring job security for thousands of workers. IAM District 751, representing over 33,000 Boeing employees, will vote on the proposed contract on September 12.

A Critical Moment for Boeing

The negotiations took place against the backdrop of Boeing’s wider struggles. Following the near-catastrophic January incident involving a 737 MAX and persistent production delays, Boeing’s recovery has been slow. The threat of a strike couldn’t have come at a worse time for the aerospace giant. “A strike would have been disastrous for Boeing,” said Claire Bushey of Financial Times. “It could have delayed the production of its strongest-selling aircraft, the 737 MAX, and further strained its already precarious financial situation.”

Boeing is currently ramping up production to meet a target of 38 aircraft per month by year’s end, a goal made even more critical by increasing competition from Airbus and ongoing scrutiny from regulators. A previous IAM strike in 2008 cost Boeing an estimated $2 billion, and another strike would have been equally, if not more, damaging.

What’s in the Agreement?

Union leaders fought hard for their members. The initial demand was a 40% wage increase, as well as the reinstatement of traditional pension plans. While the final wage increase fell short of those expectations, union representatives see the deal as a win. “The pay raises may not be exactly what we asked for, but securing the next airplane program for Puget Sound was a top priority,” said IAM President Jon Holden.

The proposed contract also includes a $3,000 ratification bonus and introduces a new retirement savings plan with company contributions. According to Boeing CEO Kelly Ortberg, the deal reflects Boeing’s long-term commitment to its workforce. “We have listened to what’s important to our employees, and we are ensuring that Boeing remains a strong presence in the Pacific Northwest for generations to come,” Ortberg said in a statement.

Employee Sentiment: Cautious Optimism

Although union leaders are urging their members to accept the deal, sentiment among Boeing’s workforce is mixed. Anti-management feelings have been simmering for years, especially among workers who feel betrayed by Boeing’s decision to scrap pensions a decade ago. “This contract is a step in the right direction, but we’re not forgetting the sacrifices we made in the past,” said an anonymous Boeing employee in Seattle.

IAM District 751 has long been a powerful voice in shaping Boeing’s labor policies. The union’s insistence on including the future aircraft production in the Pacific Northwest is seen as a major victory. “There is no Boeing without the IAM,” Holden emphasized, underscoring the union’s vital role in Boeing’s success.

Challenges Still Loom

Even with this tentative deal, Boeing is not out of the woods. The company is facing production delays and technical issues across its product lines, including the 737 MAX, 767 Tanker, and 777X. In addition, Boeing’s space division is struggling, particularly with its Starliner spacecraft, which failed to bring its crew back from the International Space Station as planned earlier this year.

Yet, this new agreement may provide a much-needed sense of stability for Boeing’s workforce and its future. “This deal could be the foundation for Boeing’s long-term recovery,” said Sara Samora, a reporter with Manufacturing Dive. “By securing labor peace, Boeing can now focus on solving its operational challenges and regaining the trust of its customers and regulators.”

The outcome of the IAM vote on September 12 will determine whether this fragile peace will hold, but for now, Boeing appears to have successfully averted a major labor crisis.

This landmark agreement, while not fulfilling all of the union’s initial demands, showcases the complex balance Boeing must strike between maintaining financial stability and addressing the concerns of its critical workforce. As Boeing continues its production ramp-up and navigates an evolving aerospace landscape, its relationship with the IAM will remain a key factor in its recovery.

]]> 607690 Dell, Palantir Set to Surge Further as They Join the S&P 500 https://www.webpronews.com/607679-2/ Mon, 09 Sep 2024 09:07:17 +0000 https://www.webpronews.com/?p=607679 As Dell Technologies and Palantir Technologies prepare to join the prestigious S&P 500 index, investors and market analysts are keeping a close eye on the two companies. Both are expected to benefit significantly from the increased visibility, liquidity, and demand for their shares as index-tracking funds adjust their portfolios to include these tech giants. With shares of both companies seeing substantial after-hours gains following the announcement, it’s clear that the market is anticipating further upside as the companies begin their S&P 500 journey on September 23, 2024.

Why the S&P 500 Inclusion Matters

The S&P 500 is one of the most influential stock indices globally, serving as a benchmark for large-cap U.S. equities. Inclusion in this index often leads to a surge in demand for a company’s shares, primarily because index funds and ETFs that track the S&P 500 must purchase shares of the newly added companies. For Dell and Palantir, this marks a significant milestone, positioning them among the elite companies in the U.S. economy.

Valérie Noël, Head of Trading at Syz Group, noted the immediate market reaction to the announcement: “Palantir shares surged 7.52% in after-hours trading, while Dell shares jumped 5%. This is a clear signal of the market’s confidence in the growth prospects of these two companies as they prepare to join the S&P 500.” Both companies have been growing their influence in the tech space, and this inclusion is expected to further solidify their market positions.

Palantir: Riding the AI Wave

Palantir, co-founded by tech billionaire Peter Thiel, has been riding the wave of artificial intelligence (AI) growth. The company, known for its big data analytics platforms like Palantir Gotham and Palantir Foundry, has been gaining momentum as governments, law enforcement, and financial institutions increasingly rely on AI and machine learning for data-driven decision-making.

Palantir’s shift towards AI and its commercial applications has bolstered its financial performance, with the company achieving consistent revenue growth and profitability since 2022. According to Bodhi Blake, a development specialist at Google, “Palantir has long been considered a key player in the AI space, and its inclusion in the S&P 500 further underscores its importance in the tech sector.”

Palantir’s expanding commercial business, particularly its AI tools, has driven its stock to new highs in 2024. As Dr. Koay, an AI advisor, noted, “Palantir’s consistent revenue growth and profitability are encouraging, but shareholders should keep an eye on the long-term risks, especially its focus on government contracts, which could face competitive challenges.”

Dell’s AI Strategy Pays Off

Dell Technologies, long known for its dominance in the hardware space, has shifted its focus toward AI infrastructure. The company has been capitalizing on the increasing demand for servers and storage solutions capable of handling AI workloads. This strategic pivot has led to stronger-than-expected revenue growth, with Dell benefiting from its AI server sales.

Dell’s AI-centric strategy has proven to be a lucrative move, with the company reporting better-than-expected earnings in recent quarters. The company’s inclusion in the S&P 500 reflects its growing importance in the tech sector, particularly in providing the hardware necessary to power AI advancements. “Dell’s re-entry into the S&P 500 after a strong performance in AI server sales highlights its growing relevance in the tech space,” said Dr. Koay.

However, as with Palantir, Dell’s success in the AI space also comes with risks. As demand for AI infrastructure fluctuates, Dell may face volatility in its revenue streams, making long-term growth a key focus for investors.

The Ripple Effect on American Airlines, Etsy, and Bio-Rad

While Dell and Palantir celebrate their inclusion in the S&P 500, the companies they are replacing—American Airlines, Etsy, and Bio-Rad Laboratories—are facing the opposite effect. Removal from the index typically leads to a decline in stock prices as index funds sell off shares to align with the new composition.

American Airlines, in particular, has been struggling with rising labor costs and delayed deliveries of new planes, which have hurt its profitability. Following the announcement, American Airlines shares dropped 0.8%, adding to a 21% year-to-date decline. Etsy, which will move to the S&P SmallCap 600, also saw a slight decline in its stock price.

]]> 607679 Court Rules Against Internet Archive: A Landmark Decision with Broad Implications for AI Fair Use https://www.webpronews.com/court-rules-against-internet-archive-a-landmark-decision-with-broad-implications-for-fair-use/ Thu, 05 Sep 2024 11:11:27 +0000 https://www.webpronews.com/?p=607542 The recent ruling against the Internet Archive by the U.S. Court of Appeals for the Second Circuit is not just another legal skirmish—it could fundamentally reshape the boundaries of fair use in the digital era. In a blow to the nonprofit organization that champions universal access to knowledge, the court affirmed a previous decision that the Internet Archive’s “controlled digital lending” (CDL) system constitutes copyright infringement. The ruling raises critical questions about the future of digital libraries, copyright laws, and the balance between intellectual property and public access.

At the heart of the case is the Internet Archive’s controversial practice of scanning physical books and making them available digitally, which it defended as a modern extension of traditional library lending. However, the court saw otherwise. “IA’s Free Digital Library primarily supplants the original works without adding meaningfully new or different features that avoid unduly impinging on publishers’ rights,” wrote the court in its ruling. The decision not only halts the Archive’s book-lending program but also sets a legal precedent that could reverberate across the digital landscape.

The Battle Over Controlled Digital Lending

The Internet Archive has long operated its Open Library project, a digital platform where users can “borrow” digitized copies of physical books, adhering to a one-to-one owned-to-loaned ratio. Essentially, if a library owned a physical copy of a book, the Archive made a digital copy available to a user under strict lending conditions, mirroring the practice of traditional library loans. The concept of CDL hinges on the belief that lending a digital copy of a book is the functional equivalent of lending the physical version. However, four major publishers—Hachette, Penguin Random House, Wiley, and HarperCollins—vehemently disagreed.

In 2020, these publishers filed a lawsuit, accusing the Archive of willful copyright infringement. The Archive, they argued, was unlawfully distributing exact digital replicas of their works, undercutting the market for legitimate eBook sales and licensing. The court agreed, finding that the Archive’s practices were not protected by the Copyright Act’s fair use doctrine. “This ruling reaffirms the rights of authors and publishers to license and be compensated for their works,” said Maria Pallante, president and CEO of the Association of American Publishers. “It reminds us that infringement, even under the guise of public interest, is both costly and antithetical to the protection of creative works.”

The Fair Use Debate: What Constitutes “Transformative”?

A critical component of the court’s analysis was whether the Archive’s actions qualified as “transformative” under fair use. In copyright law, a transformative use adds new meaning, expression, or value to the original work. The Archive’s argument was that digitizing books to allow broader access through lending was transformative in nature. Joe Gratz, the Internet Archive’s lawyer, contended during the hearing that the nonprofit was simply using technology to perform the same functions libraries had always done. “Libraries have been lending books for centuries. What we’re doing is no different, except that it’s more efficient and accessible.”

However, the court pushed back on this narrative. “If print and eBook formats are considered distinct, and there are separate markets for them, why shouldn’t the law recognize that converting a paper book into a digital book isn’t just the same thing as passing around a paper book?” the judges asked. They ultimately ruled that the Archive’s digital copies were not transformative because they served the same purpose as the original works—reading—and did not add new content or functionality. “IA is asking us to bless large-scale copying and distribution of copyrighted books without permission or payment to the authors. This is not an approach the Copyright Act permits,” the court concluded.

The Implications for Libraries and Digital Access

The ruling has left many in the library and academic communities dismayed. Chris Freeland, the Internet Archive’s director of library services, expressed his disappointment in the outcome. “We are reviewing the court’s opinion and will continue to defend the rights of libraries to own, lend, and preserve books,” he said, reflecting concerns over the chilling effect this decision could have on digital preservation efforts.

Advocates for the Archive argue that the decision will disproportionately harm libraries and their patrons. “Libraries are already burdened by eBook licensing fees that make it difficult to provide access to creative works,” noted Dave Hansen, executive director of the Author’s Alliance. “This ruling may benefit the largest publishers and most prominent authors, but for many others, it will do more harm than good. It could even stifle academic research and learning.”

A lingering concern is that this ruling could lead to more restrictive access to digital books, particularly as more works become available only in eBook format. “The real-world effect of this decision is that libraries will struggle to provide access to books in any meaningful way,” said Hansen. “The price of eBook licenses is already sky-high, and now libraries are being squeezed even further. It’s the public who will ultimately suffer.”

AI Training Faces New Copyright Hurdles

The implications of the ruling extend beyond libraries and digital lending, touching on the rapidly evolving field of artificial intelligence (AI). As AI systems increasingly rely on copyrighted materials for training, the precedent set by the Internet Archive case could have a chilling effect on how companies and developers access and use creative works. “The way the courts interpret fair use in the coming years will be crucial,” said James Grimmelmann, a professor of digital and internet law at Cornell University. “The Internet Archive decision shows that courts are taking a more restrictive view of fair use, which could make it harder for AI companies to use copyrighted materials without permission or compensation.”

This trend is already visible in a number of high-profile lawsuits involving AI companies. Many of these cases argue that using copyrighted works to train AI models—whether for generating text, music, or images—should be protected under fair use. However, as the Internet Archive ruling demonstrates, courts are increasingly skeptical of such claims. “If we continue down this path, we could see a legal framework where innovation is stifled by restrictive copyright interpretations,” warned Dave Hansen of the Author’s Alliance. He emphasized that while protecting creators is important, overly rigid copyright laws could impede technological advancement, particularly in AI, which thrives on vast amounts of data for training purposes.

Furthermore, some legal experts have pointed out that the parallels between digital lending and AI training are striking. The court’s dismissal of the Archive’s argument that its practices were transformative could be a bellwether for how similar defenses are treated in AI cases. As Grimmelmann noted, “There’s nothing transformative about IA’s use of the books, according to the court, and this could be a big problem for AI companies that are also trying to argue that their use of copyrighted works is transformative. It’s a significant decision to watch.”

The debate over fair use and AI will undoubtedly intensify in the coming years, especially as the technologies become more pervasive in industries ranging from entertainment to education. “It’s not just about libraries and books,” added Hansen. “The ramifications of this ruling could be felt across the entire tech ecosystem, particularly for companies developing generative AI models. Fair use is no longer a given; it’s going to be litigated and fought over case by case.”

What’s Next for the Internet Archive?

The Internet Archive is not ready to throw in the towel just yet. Freeland has hinted that the organization is considering its legal options, including further appeals. However, the nonprofit faces an uphill battle. It is also currently embroiled in a separate $400 million copyright infringement lawsuit from a group of record labels over its Great 78 Project, which aims to digitize and preserve 78rpm shellac records. The combined legal challenges are raising existential questions for the Archive’s future.

As Gratz noted after the ruling, “It’s hard to say how this case will be resolved. But what is clear is that the issues it raises—about the role of libraries, digital access, and the public’s right to information—are not going away.”

The case has drawn a sharp line in the sand between the rights of authors and publishers and the rights of the public to access information. As the debate continues, many are left wondering what the future holds for digital lending, fair use, and the very concept of libraries. Then, there is the massive AI-generated elephant in the room. Are limits coming to the scraping of content by companies like OpenAI, Google, Facebook, etc. that are fueling their AI products?

]]> 607542 Airbnb Begs NYC to End Failed Rental Regulations https://www.webpronews.com/airbnb-begs-nyc-to-end-failed-rental-regulations/ Wed, 04 Sep 2024 06:48:15 +0000 https://www.webpronews.com/?p=607479 A year into New York City’s unprecedented crackdown on short-term rentals, Airbnb is pushing back against the restrictive regulations that have decimated its business in the city. The short-term rental giant argues that the rules—designed to increase the availability of affordable long-term housing—have failed to deliver on their promises. Instead, consumers are grappling with higher hotel prices, rents are still climbing, and small businesses, particularly in the outer boroughs, are struggling to survive.

In a recent blog post, Airbnb called for an overhaul of Local Law 18 (LL18), urging New York City officials to reassess the stringent regulations. “It’s time for New York City to re-evaluate LL18 and consider amendments that would, at a minimum, allow homeowners to once again host guests,” said Theo Yedinsky, Airbnb’s vice president of public policy. He added that by loosening some restrictions, the city could “increase the supply of accommodations for consumers, support resident hosts, and revitalize local businesses that depend on tourism dollars.”

The Rise and Fall of Short-Term Rentals in NYC

Before LL18 took effect in September 2023, New York City was one of Airbnb’s largest and most lucrative markets. In 2022 alone, the company generated $85 million in net revenue from its New York listings. The city was home to tens of thousands of short-term rentals spread across all five boroughs. However, Local Law 18 sought to change this landscape by imposing severe restrictions on short-term rentals. The law requires hosts to live on the premises during rentals, limits stays to fewer than 30 days, and caps guest occupancy at two people, among other stringent conditions.

The impact was immediate, according to data from AirDNA, the number of Airbnb listings for stays of fewer than 30 days plummeted by 83% in the first year of the law’s enforcement. In July 2024, there were just 3,700 short-term listings on Airbnb in New York City, down from 21,900 in July 2023. “Many hosts were forced to switch to mid- or long-term rentals, but those who relied on short-term rentals as a primary source of income were hit hard,” said Jamie Lane, chief economist at AirDNA.

For hosts like Malaika, who rented out the downstairs apartment of her two-family home in Brooklyn, the new law has been financially devastating. “I’ve lost about $2,400 in monthly income, nearly a 30% drop,” she said. Malaika, who bought her home in Ocean Hill, Brooklyn, with her sisters, relied on short-term rentals to help pay her mortgage. “I prided myself on offering affordable stays in a place filled with African art and culture,” she said. “But the new rules make it impossible to continue hosting as I did.”

A Blow to Small-Time Hosts

Many small-time hosts like Malaika have been disproportionately affected by the city’s regulations. Hosts who once used platforms like Airbnb to supplement their income now find themselves struggling to make ends meet. Gia Sharp, a homeowner and co-founder of RHOAR (Residents for Homeowner Air Rights), has been leading a campaign to pause the enforcement of LL18 and exempt one- and two-family homeowners from the registration requirement. “Some of our members are doing even worse,” she said. “One homeowner lived in his car over the summer because he had to rent out his place so he wouldn’t lose it.”

Sharp also shared her personal challenges, recounting how the new regulations have disrupted her income and prevented her from making essential repairs to her home. “There’s definitely a few mortgage payments for income that I’m doing without, which is insane. I definitely can’t afford to replace my windows, which is thousands of dollars,” she said. Sharp and other members of RHOAR argue that the regulations have been too broad, catching small-time hosts in a net designed to target larger, illegal hotel operations.

In an interview, a retired FEMA employee, Stanley McIntosh, explained how the complexities of registering under the new law forced him out of the short-term rental market. McIntosh, who had been renting a garden-level apartment in his Harlem brownstone on Vrbo since 2017, said, “The application process was too complicated. The changes and the stuff you had to do just wouldn’t have worked at all.” Stanley and his wife, Rosalinda, initially shifted to longer-term rentals but are now uncertain about their next steps. “We can pay the mortgage, but we can’t save like we used to,” he said.

Outer Boroughs Hit the Hardest

The economic impact of LL18 has been particularly harsh on neighborhoods outside of Manhattan. Brooklyn and Queens, which had significant numbers of Airbnb listings before the law went into effect, have seen tourism and associated spending evaporate. Airbnb listings in the outer boroughs provided tourists with an affordable alternative to expensive Manhattan hotels, while also dispersing visitor dollars across different communities.

According to data from AirDNA, 37% of Airbnb listings in New York City were located in Brooklyn, and 13% were in Queens before the law. But LL18 has dramatically reduced the number of listings in these areas. As a result, tourism dollars that once flowed into local businesses in Brooklyn and Queens have dried up. “The unintended consequences of this legislation, especially the steep decline in places for tourists to stay, are hindering Brooklyn’s potential to attract visitors and is hurting its residents, small businesses, and local economy,” said Randy Peers, CEO of the Brooklyn Chamber of Commerce, in a scathing op-ed.

Peers isn’t the only one sounding the alarm. The Dominican American Chamber of Commerce has also criticized LL18 for favoring large corporations at the expense of middle-class residents and local small businesses. “With rent prices surging and many families relying on short-term rentals for supplemental income, the law has created financial strain for individual hosts and a decline in revenue for local businesses that thrive on tourism,” said Manuel Lebron, CEO of the Dominican American Chamber of Commerce.

Hotels Reap the Benefits

While small hosts and outer-borough communities have struggled, New York City’s hotel industry has experienced a remarkable boom. Since the introduction of LL18, hotel prices have surged, making New York City one of the most expensive destinations for travelers. Data from CoStar shows that New York City hotels posted the highest revenue per available room (RevPAR) increase among the top 25 U.S. hotel markets during the first half of 2024, jumping 10.1%.

Jan Freitag, national director of hospitality analytics at CoStar, confirmed the trend: “New York has certainly outperformed. While other top markets are recovering, none are seeing the jump that New York is experiencing.” However, Freitag also noted that the city’s hotel supply has actually decreased by 0.8% because many hotel rooms are now being used to house migrants and the homeless, adding further pressure on available accommodations. “The surge in demand, combined with the constraints on hotel capacity, has led to record-breaking prices,” he said.

But while Manhattan’s hotels are thriving, the story is different in the outer boroughs, where the hotel infrastructure is far less developed. “The impact on the city hasn’t been even,” said Jamie Lane of AirDNA. “Submarkets in the Bronx, Brooklyn, and Queens have seen short-term rental listings for stays of less than 30 nights drop by more than 90% year-over-year.”

The Black Market for Rentals

As legitimate short-term rentals have disappeared, an underground market has emerged to fill the void. Hosts unable or unwilling to register with the city have turned to alternative platforms, including Craigslist, Facebook groups, and even encrypted messaging apps like Telegram and Discord. These black-market listings operate outside the legal framework, offering few protections for guests.

“We go on there and individuals take risks in times of need if it’s a personal referral to the group,” said Malaika, referring to a group chat for hosts in her neighborhood. “It definitely happens. People are desperate.” She admitted that she once broke the law by renting out her apartment illegally for a week to avoid missing a mortgage payment. “I was crapping the entire time because the Office of Special Enforcement sends people around, and they could have been knocking on my door any day,” she said.

Marcus Räder, CEO of short-term rental software provider Hostaway, has also witnessed the rise of the black market. Speaking on the Alex & Annie Vacation Rental Podcast, he recounted his experience staying at an illegal Airbnb in New York. “Originally, I booked it on Airbnb, but then the listing got shut down. The host reached out to me and said, ‘Yo, just send the money. I’m still doing it.’” Räder suggested that while the law has made Airbnb and other platforms more accountable, it has also driven many rentals underground. “We need more Craigslist and no photos. That’s OK,” he quipped.

Airbnb’s Push for Reform

Airbnb’s leadership continues to argue that the broad scope of LL18 is hurting more than it’s helping. Theo Yedinsky pointed out that removing Airbnb listings from the market hasn’t translated into a meaningful increase in long-term rental housing. “It’s a misconception to think that if you remove a short-term rental from Airbnb, it automatically turns into long-term housing,” Yedinsky said. He emphasized that many Airbnb listings are lived-in homes where the owners rent out a room or the entire house while they are away. “It assumes every Airbnb that is listed is not lived in, is not a primary residence, and that’s fundamentally not true,” he added.

Former City Council Member Ben Kallos, the architect of LL18, stands by the law but acknowledges that some of its provisions may need reevaluation. “It’s good to see evidence that the number of short-term rentals in NYC has decreased,” Kallos said. “But I’m puzzled by how few hosts have been able to register. We need to close loopholes that allow condo owners in Class B buildings to keep renting out their units without the same limitations.”

Yedinsky, however, remains firm in his belief that the law’s current form is unsustainable. “We’re seeing the data now. The regulations haven’t reduced rents, and they haven’t increased vacancy rates. Instead, they’ve moved the activity underground,” he said.

A Call for Balance

As the debate over short-term rentals continues, Airbnb and its supporters are calling for a more balanced approach to regulation. They argue that while the city’s housing crisis needs to be addressed, LL18 has gone too far in penalizing small-time hosts who rely on short-term rentals for financial stability. “We’re not against regulation,” Yedinsky said. “We want to work with the city to create a system that works for everyone—one that addresses concerns about affordable housing while still allowing responsible hosts to operate legally.”

For homeowners like Gia Sharp and Malaika, the stakes couldn’t be higher. “This law has taken away our ability to make a living,” Sharp said. “We need relief, and we need it soon.” Malaika echoed the sentiment: “I don’t know how much longer I can hold on. My savings are gone, and I’m struggling every month. This isn’t what I signed up for when I bought my home.”

Airbnb’s blog post suggests that the solution lies in amending LL18 to allow more flexibility for homeowners, especially those in the outer boroughs. By rolling back parts of the law, the city could increase the supply of accommodations for visitors, support local businesses, and provide financial stability to resident hosts. “A more sustainable, sensible, and equitable model benefits residents, visitors, and the broader community,” Yedinsky said.

No Clear Resolution in Sight

New York City’s housing and tourism sectors are at a crossroads, with the future of short-term rentals hanging in the balance. As Local Law 18 enters its second year of enforcement, the city’s leadership faces increasing pressure to reevaluate the law’s effectiveness. With rents still rising, tourism booming, and small hosts struggling, it’s clear that the law has created unintended consequences that may require a different approach.

“The housing crisis isn’t going away,” said Randy Peers. “But we can’t ignore the economic realities facing small-time hosts and local businesses. We need a balanced solution that addresses both sides of the issue.” As Airbnb and its supporters continue their push for reform, the city will have to decide whether to stick with its hardline stance or find a compromise that works for everyone.

In the meantime, the debate over short-term rentals rages on with no clear resolution in sight. As Airbnb CEO Brian Chesky prepares to speak at the upcoming Skift Global Forum, the company’s future in New York City remains uncertain. But one thing is clear: Airbnb is not giving up its fight to stay in the Big Apple.

]]> 607479 27 of the Fastest-Growing Startups to Watch in 2024 https://www.webpronews.com/27-of-the-fastest-growing-startups-to-watch-in-2024/ Mon, 02 Sep 2024 18:56:14 +0000 https://www.webpronews.com/?p=607274 In the ever-evolving landscape of technology and innovation, staying ahead of the curve is essential—whether you’re an investor seeking the next unicorn, an entrepreneur hunting for inspiration, or a professional looking for your next big career move. The startup ecosystem is a fertile ground for all these pursuits, with some companies making waves early in their journeys.

Recently, angel investor Ben Lang curated a list of 27 startups that have each raised between $10M and $50M from top-tier venture capital funds. These companies are not only growing at a rapid pace but are also actively hiring, making them the ones to watch in 2024.

Here’s a deep dive into these promising startups that are shaping the future across various industries.

1. Attio – Next-Generation CRM (US Remote / EU Remote)

Attio is revolutionizing the CRM landscape by offering a tool that is as dynamic as the teams that use it. Attio’s CRM is designed to adapt to the unique workflows of modern businesses, providing unparalleled flexibility and power. “Our mission is to redefine how businesses interact with their data, making CRMs more intuitive and actionable,” says the Attio team. With remote opportunities available, Attio is a top choice for professionals seeking to work in a cutting-edge environment.

2. Consensus – AI Search Engine for Scientific Research (US Remote)

Consensus is bringing AI to the forefront of scientific research with a search engine that leverages AI to provide researchers with precise and relevant results. “We are here to enhance the scientific discovery process by making research more accessible and efficient,” says the company’s leadership. This startup is ideal for those passionate about AI and its applications in academia and industry.

3. Slingshot AI – Mental Health AI Research (NYC / London)

Mental health is one of the most pressing issues today, and Slingshot AI is addressing it head-on with AI-powered research tools designed to understand and improve mental health outcomes. “We believe in the power of AI to revolutionize mental health research and treatment,” the founders explain. Their mission-driven approach is attracting top talent in both New York City and London.

4. OpusClip – AI Video Repurposing (Canada / Bay Area)

OpusClip offers a groundbreaking solution for content creators, allowing them to repurpose videos effortlessly using AI. “Our technology enables creators to maximize their content’s value by making it easy to create new clips from existing material,” says OpusClip’s team. This startup is a haven for those interested in video technology and AI.

5. Comun – Bank for Immigrants in the U.S. (NYC)

Comun is redefining banking for immigrants in the U.S. by providing tailored financial services that meet their unique needs. “We’re building a financial platform that empowers immigrants to achieve their American dream,” says Comun’s leadership. This NYC-based startup is perfect for those passionate about fintech and social impact.

6. Bland AI – Automated Phone Calls with AI (Bay Area)

Bland AI is automating one of the most time-consuming tasks in customer service: phone calls. By leveraging AI, Bland AI ensures that customers receive timely and accurate information without the wait times. “Our goal is to make customer interactions smoother and more efficient,” the team says. Professionals in AI and customer experience will find exciting opportunities here.

7. Viggle – AI Video Generation (London)

Viggle is at the cutting edge of AI-driven video generation, offering tools that allow businesses and creators to produce high-quality videos quickly and easily. “We’re pushing the boundaries of what’s possible with AI in video production,” says Viggle’s founders. Based in London, this startup is perfect for those interested in AI, video technology, and creative industries.

8. Tilt – Real-Time Fashion Shopping (Toronto)

Tilt is changing the way we shop for fashion by offering a real-time shopping experience that connects users with the latest trends as they happen. “We believe shopping should be as dynamic and exciting as the fashion world itself,” the team shares. Tilt is a great fit for those with a passion for fashion and e-commerce.

9. Solace – Platform to Empower Patients (US / Remote)

Solace is empowering patients by providing them with tools and resources to take control of their health. “We’re creating a platform that puts patients at the center of their healthcare journey,” says Solace’s leadership. This remote-friendly startup is ideal for professionals in health tech and patient advocacy.

10. Lettuce Financial – Accounting and Tax Solution for Solopreneurs (US Remote)

Lettuce Financial is simplifying accounting and tax management for solopreneurs, offering a platform that automates these processes. “Our goal is to take the headache out of finances for solopreneurs so they can focus on growing their businesses,” the team explains. This startup offers remote opportunities in the booming fintech sector.

11. AstroForge – Asteroid Mining (Seal Beach, CA)

AstroForge is turning science fiction into reality with its asteroid mining ventures. “We’re unlocking the potential of space resources to fuel the next wave of technological advancement,” says AstroForge’s leadership. This ambitious startup is for those who dream big and are excited about space exploration.

12. Onebrief – Military Planning and Collaboration Software (Remote / San Diego)

Onebrief provides cutting-edge software for military planning and collaboration, ensuring that teams can work together effectively even in the most challenging environments. “Our software is designed to support the critical work of military planners, providing the tools they need to succeed,” the team shares. This startup offers remote and San Diego-based roles for those interested in defense technology.

13. DEFCON AI – Modeling, Simulation, Analysis Software for the Military (Washington DC / Remote)

DEFCON AI is enhancing military preparedness through advanced modeling, simulation, and analysis software. “We’re helping the military make better decisions faster,” says DEFCON AI’s leadership. With opportunities in Washington DC and remotely, this startup is a prime destination for those interested in AI and defense.

14. Eppo – Experimentation and Feature Management Platform (Remote US / EMEA)

Eppo provides a platform that allows companies to run experiments and manage features more effectively, driving better business outcomes. “We’re enabling companies to innovate faster and with greater confidence,” says the Eppo team. With roles available remotely, Eppo is perfect for those interested in product management and data-driven decision-making.

15. Trunk Tools – AI for the Construction Industry (Remote US)

Trunk Tools is bringing AI to the construction industry, offering solutions that improve efficiency and safety on job sites. “We’re transforming construction with the power of AI,” the team states. This remote-friendly startup is ideal for professionals interested in AI and construction technology.

16. CodeRabbit – AI Code Reviews (Bay Area / Remote / Bangalore)

CodeRabbit is revolutionizing the code review process with AI, making it faster and more accurate. “Our platform is the most installed AI app on GitHub and GitLab, and we’re just getting started,” says CodeRabbit’s leadership. With opportunities in the Bay Area, remotely, and in Bangalore, this startup is a great fit for developers and AI enthusiasts.

17. Pylon – Support Platform for B2B Companies (Bay Area)

Pylon offers a comprehensive support platform for B2B companies, helping them manage customer interactions and service delivery more effectively. “We’re building the infrastructure that B2B companies need to succeed,” says Pylon’s team. Based in the Bay Area, Pylon is a top choice for those interested in B2B technology and customer support.

18. Capitalize – Platform to Find and Transfer Retirement Assets (NYC)

Capitalize is simplifying the process of finding and transferring retirement assets, helping users take control of their financial future. “We’re making it easier for people to manage their retirement savings,” says the Capitalize team. This NYC-based startup is perfect for professionals in fintech and financial planning.

19. Encord – Data Engine for AI Model Development (London / Bay Area)

Encord provides the data engine that powers AI model development, offering tools that streamline the data preparation process. “We’re accelerating AI innovation by making data more accessible and actionable,” the team explains. With offices in London and the Bay Area, Encord is a great destination for those passionate about AI and data science.

20. Setpoint – Operating System for Capital Markets (US Remote)

Setpoint is building the operating system for capital markets, providing the infrastructure needed for efficient trading and investment management. “We’re redefining how capital markets operate, making them more transparent and accessible,” says Setpoint’s leadership. This remote-friendly startup is ideal for those interested in fintech and financial markets.

21. MD Ally | 911 Network Navigation – 911 Diversion, Care, and Navigation Solutions (US Remote)

MD Ally offers innovative solutions for 911 diversion, care, and navigation, helping to improve emergency response outcomes. “We’re transforming how emergency services are delivered, making them more effective and efficient,” the team shares. With remote opportunities available, MD Ally is perfect for those passionate about healthcare and public safety.

22. Bridge – Stablecoin Payment Network (Bay Area)

Bridge is building a stablecoin payment network that promises to revolutionize how we transact in the digital age. “We’re creating a more stable and secure way to handle digital payments,” says Bridge’s founders. Based in the Bay Area, this startup is ideal for professionals interested in blockchain and fintech.

23. Supio – AI Platform for Law Firms (Seattle)

Supio is bringing AI to the legal industry, offering a platform that helps law firms manage cases and client interactions more effectively. “We’re empowering law firms with the tools they need to succeed in a digital world,” says the Supio team. This Seattle-based startup is a great fit for those interested in legal tech and AI.

24. Ema Unlimited – Gen AI Platform for Enterprises (US / Canada / India Remote)

Ema Unlimited is harnessing the power of generative AI to create solutions tailored for enterprise needs. “We’re pushing the boundaries of what generative AI can do for businesses,” says Ema Unlimited’s leadership. With remote roles available across the US, Canada, and India, this startup is perfect for AI enthusiasts looking to make a big impact.

25. The Rounds – Sustainable Household Essentials (NYC / Philly)

The Rounds is making sustainability simple by offering household essentials that are both eco-friendly and convenient. “We’re helping people live more sustainably without sacrificing convenience,” says the team at The Rounds. Based in NYC and Philly, this startup is ideal for those passionate about sustainability and consumer goods.

26. PayZen – OS for Healthcare Affordability (Remote US / Bay Area / Tel Aviv)

PayZen is tackling the challenge of healthcare affordability with an operating system that helps patients manage their medical expenses. “We’re making healthcare more affordable and accessible for everyone,” says the PayZen team. With roles available remotely, in the Bay Area, and Tel Aviv, this startup is perfect for those interested in healthcare and fintech.

27. Starpath – Propellant for the Space Economy (Hawthorne, CA)

Starpath is fueling the space economy with its advanced propellant technologies, pushing the boundaries of space exploration. “We’re providing the propellants that will power the next generation of space missions,” says Starpath’s leadership. Based in Hawthorne, CA, this startup is ideal for those passionate about space technology and innovation.

Ben Lang provided the list with all the links here:

Final Thoughts

These 27 startups represent some of the most exciting opportunities in the tech world today. Whether you’re looking to invest, join a groundbreaking company, or simply stay informed about the latest trends, these companies are worth keeping an eye on.

As Ben Lang, the angel investor who compiled this list, aptly puts it, “These startups are not just building the future; they’re also looking for the people who will help them create it.” With many of these companies actively hiring, now is the perfect time to explore new opportunities and become part of the next wave of innovation.

]]> 607274 DirecTV Customers Suddenly Cut Off From Disney, ESPN, and ABC https://www.webpronews.com/directv-customers-suddenly-cut-off-from-disney-espn-and-abc/ Mon, 02 Sep 2024 09:06:58 +0000 https://www.webpronews.com/?p=607242 In a move that has left millions of sports fans and entertainment lovers fuming, DirecTV has pulled the plug on Disney-owned channels, including ESPN and ABC, following a breakdown in negotiations between the satellite broadcaster and the entertainment giant. The blackout, which began on September 1, 2024, impacts more than 11 million DirecTV subscribers across the United States, sparking outrage and frustration, particularly among viewers eager to tune into the start of the college football season and ongoing U.S. Open tennis matches.

The timing of the blackout couldn’t have been worse for DirecTV customers. The channels went dark just before the highly anticipated USC-LSU football game on ABC and during ESPN2’s coverage of the U.S. Open. With the NFL season kickoff only days away, the disruption has left subscribers scrambling for alternatives, and many are questioning the rationale behind the impasse.

The Root of the Dispute

At the heart of the dispute is money—specifically, the fees Disney is demanding from DirecTV to carry its popular channels. According to Rob Thun, DirecTV’s Chief Content Officer, “Disney is seeking too much money for what they are granting us.” Thun’s frustration is evident as he criticizes Disney for what he sees as unreasonable demands, particularly as the satellite broadcaster grapples with the ongoing challenges of a shrinking pay-TV market.

Disney, on the other hand, counters that it is merely seeking rates consistent with what other major distributors are already paying. “DirecTV is seeking rates that aren’t in line with what other major distributors pay to carry our networks,” stated Justin Connolly, President of Disney Platform Distribution. The crux of Disney’s argument is that as the cost of producing high-quality content—especially live sports—continues to rise, they must secure appropriate compensation to maintain their robust programming lineup.

But the financial disagreement is just one piece of the puzzle. DirecTV has been pushing for more flexibility in how it packages and sells Disney’s channels to its customers. The traditional pay-TV model, which bundles a large number of channels into a single package, has been losing favor with consumers who increasingly prefer more customizable options. DirecTV’s proposal to offer genre-specific bundles, such as a sports-centric package including ESPN and ABC, has met resistance from Disney, particularly over the issue of “minimum penetration levels,” which dictate how many households must subscribe to each channel package.

A History of Contentious Negotiations

This isn’t the first time Disney has found itself in a carriage dispute with a major distributor. Just last year, Disney’s channels went dark on Charter Communications’ Spectrum service for over a week before a last-minute agreement was reached. That blackout, much like the current one, occurred at a critical time—just before the first “Monday Night Football” game of the season—highlighting the recurring nature of these disputes as content providers and distributors clash over the future of television.

DirecTV, the third-largest video provider in the U.S., has been vocal about the need for a new distribution model. In a recent company blog post, Thun criticized programmers like Disney for “eroding the price-value proposition for pay-TV customers by shifting the best programming to direct-to-consumer services while raising programming fees on pay TV.” The frustration among distributors like DirecTV is palpable as they struggle to adapt to a rapidly changing media landscape where streaming services like Netflix, Disney+, and ESPN+ are increasingly taking center stage.

Public Outcry and Corporate Blame Game

The public reaction to the blackout has been swift and fierce, with many DirecTV subscribers taking to social media to express their anger. Comments like “WTF DirecTV and ESPN” and “There’s no way DirecTV just shut off all ESPN/Disney/ABC services…” flooded platforms like X (formerly Twitter), with some users threatening to cancel their subscriptions altogether. “ESPN or DirecTV needs to die .. who does this in the middle of a program .. do this at 2am,” tweeted one frustrated viewer, capturing the sentiment of many who feel caught in the crossfire of a corporate battle.

In response to the outcry, both Disney and DirecTV have issued statements defending their positions. “DirecTV chose to deny millions of subscribers access to our content just as we head into the final week of the U.S. Open and gear up for college football and the opening of the NFL season,” said Disney in a joint statement from Dana Walden and Alan Bergman, Co-Chairmen of Disney Entertainment, and Jimmy Pitaro, Chairman of ESPN. The statement emphasized Disney’s commitment to delivering top-tier content and urged DirecTV to “finalize a deal that would immediately restore our programming.”

DirecTV’s Thun fired back, accusing Disney of refusing to be accountable to consumers and prioritizing profit over customer satisfaction. “Disney is in the business of creating alternate realities, but this is the real world where we believe you earn your way and must answer for your own actions. They want to continue to chase maximum profits and dominant control at the expense of consumers,” Thun asserted.

Impact on Sports Fans and the Broader Industry

The blackout has been particularly devastating for sports fans, who rely on ESPN for comprehensive coverage of major events like college football, the U.S. Open, and the NFL. The U.S. Tennis Association expressed disappointment, stating, “It is disappointing that fans and viewers around the country will not have the opportunity to watch the greatest athletes in our sport take part in the 2024 U.S. Open due to an unresolved negotiation between DirecTV and Disney.”

The broader implications of the dispute extend beyond just the inconvenience to viewers. The ongoing battle between content providers and distributors reflects the larger struggles facing the traditional pay-TV industry. As consumers increasingly cut the cord in favor of streaming services, the pressure on both sides to innovate and adapt has intensified. For Disney, this means finding a balance between maximizing revenue from its traditional channels while continuing to invest in its streaming platforms. For DirecTV, it means fighting for the flexibility to offer customers what they want without being held hostage to rising content costs.

What’s Next?

As negotiations between DirecTV and Disney continue, millions of subscribers are left in limbo, hoping for a resolution before the NFL season kicks off and more marquee sports events are missed. Industry analysts predict that a deal will eventually be struck, likely just before the start of the NFL season, when the pressure on both sides will be at its peak. However, the outcome of this dispute could set a precedent for future negotiations, particularly as the media landscape continues to evolve.

For now, DirecTV customers will have to make do without some of their favorite channels, and both companies will need to weigh the long-term costs of their standoff. As one frustrated subscriber put it, “This happens every year, right about the start of football season. When will they learn?”

The ongoing saga between DirecTV and Disney is a stark reminder of the complexities and challenges facing the television industry in the streaming era. Whether this dispute will lead to meaningful change in how content is packaged and distributed remains to be seen, but one thing is clear: the days of the traditional TV bundle are numbered, and both providers and programmers must adapt—or risk being left behind.

]]> 607242 Kelly Ortberg Takes Helm as Boeing’s New CEO Amidst Turbulent Times https://www.webpronews.com/kelly-ortberg-takes-helm-as-boeings-new-ceo-amidst-turbulent-times/ Thu, 08 Aug 2024 13:32:43 +0000 https://www.webpronews.com/?p=606289 Seattle, WA – August 8, 2024 – Boeing has officially announced Kelly Ortberg as its new Chief Executive Officer, effective immediately. This significant leadership change aims to steer the aerospace giant through critical challenges and strategic opportunities. Ortberg, a seasoned executive with extensive experience in the aerospace and defense sectors, was named CEO by the Boeing Board on July 31, 2024. He begins his role today with a commitment to restoring trust and driving excellence across the company.

Ortberg’s Message to Boeing Employees

Kelly Ortberg began his tenure with a heartfelt and motivational message to Boeing employees, highlighting his commitment to restoring trust and emphasizing the importance of teamwork. “Restoring trust starts with meeting our commitments—whether that’s building high-quality, safe commercial aircraft, delivering on defense and space products, or servicing our products to keep our customers running 24/7,” Ortberg wrote. “It also means meeting our commitments to each other and working collaboratively across Boeing to meet our goals.”

Ortberg’s emphasis on quality and safety is a direct response to the issues Boeing has faced in recent years. The company has been under intense scrutiny due to production delays and safety concerns, particularly surrounding the 737 MAX. “People’s lives depend on what we do every day, and we must keep that top of mind with every decision we make,” Ortberg stressed, underscoring the critical nature of their work.

In his message, Ortberg also shared his plans to be hands-on and visible within the company. “Because what we do is complex, I firmly believe that we need to get closer to the production lines and development programs across the company. I plan to be based in Seattle so that I can be close to the commercial airplane programs,” he stated. This approach is reminiscent of Ortberg’s tenure at Rockwell Collins, where he was known for removing VIP parking spots to promote equality and often parking far from the building himself to set an example. Brad Neilly, a former employee, recalled how Ortberg’s actions made a big impact on him and other employees​.

Ortberg’s message also highlighted his intention to engage directly with employees and stakeholders. “In fact, I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans. Soon I’ll be visiting many of our sites and I look forward to meeting with teammates around the world,” he said. This commitment to being present and involved is expected to foster a stronger connection between leadership and the workforce, a critical step in addressing the cultural and operational issues that have plagued Boeing.

The new CEO’s approach has already garnered positive reactions from within the company. “Ortberg’s willingness to be on the ground and listen to employees is exactly what Boeing needs right now,” said an anonymous Boeing employee on X (formerly Twitter). “It’s a sign that he’s serious about making real changes and addressing the issues we’ve been facing head-on.”

Ortberg concluded his message with a pledge for transparency and regular communication. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better. You’ll begin to see routine reports from me through email and our BNN channel, giving you timely updates of what I’m seeing and hearing on the ground from our teammates and our stakeholders.” This promise of open communication is seen as a crucial element in rebuilding trust and fostering a collaborative environment within Boeing​ .

A Hands-On Leader for Troubled Times

Kelly Ortberg’s appointment as Boeing’s CEO is seen as a strategic move to steer the company through a period of significant turbulence. Known for his hands-on approach, Ortberg is expected to bring much-needed stability and a renewed focus on quality and safety. His tenure at Rockwell Collins demonstrated his ability to address both strategic and operational challenges effectively, a trait that Boeing desperately needs as it navigates its current crises.

Ortberg’s reputation for being on the factory floor and engaging directly with employees has already started to instill confidence within Boeing. “Kelly is a person who will do that,” said Don Beall, former CEO of Rockwell International. “He’s a very hands-on guy. He’ll get out on the shop floor.” This approach is crucial for Boeing, as it has faced significant issues with production delays and quality control that have tarnished its reputation and strained its finances.

His immediate predecessor, David Calhoun, also emphasized Ortberg’s suitability for the role. “Kelly’s leadership style and industry expertise make him uniquely qualified to lead Boeing during this critical time,” Calhoun stated. Ortberg’s focus on building strong teams and running complex engineering and manufacturing companies aligns with the needs of Boeing as it seeks to restore its standing in the aerospace industry.

Ortberg’s background in engineering and deep understanding of aerospace manufacturing processes position him well to address the intricate challenges Boeing faces. Alan Mulally, former head of Boeing’s commercial business, highlighted Ortberg’s experience: “Kelly was key in developing the cockpit for the 777 and 787 jetliners—from flight control to vision systems to maps. This required him to navigate the needs of Boeing, suppliers, pilots, regulators, and air traffic officials.”

Moreover, Ortberg’s commitment to a hands-on leadership style extends beyond his interactions with employees. His strategic vision includes leveraging his deep industry relationships to rebuild trust with customers and regulators. “In speaking with our customers and industry partners leading up to today, I can tell you that without exception, everyone wants us to succeed. In many cases, they need us to succeed,” Ortberg emphasized in his message to employees. This network of support is critical as Boeing works to overcome its current challenges and position itself for future success.

Industry analysts have also noted Ortberg’s potential to bring about meaningful change at Boeing. “You couldn’t ask for a better selection,” aviation analyst Richard Aboulafia told Flightglobal. “His experience and leadership style are exactly what Boeing needs to navigate through these troubled times and emerge stronger.”

Ortberg’s early decisions, such as choosing to base himself in Seattle to be closer to the production lines, signal his commitment to understanding and addressing the company’s core issues firsthand. This decision is seen as a move to bridge the gap between Boeing’s leadership and its manufacturing workforce, fostering a culture of collaboration and accountability.

Kelly Ortberg’s hands-on leadership and deep industry expertise are critical assets in Boeing’s effort to navigate its current challenges and rebuild its reputation as an industry leader. His approach is expected to drive the company towards a more stable and prosperous future, focusing on quality, safety, and operational excellence.

Strategic Vision and Commitment to Quality

Kelly Ortberg’s strategic vision for Boeing is rooted in his commitment to restoring the company’s reputation for quality and safety. His message to employees underscored the importance of these values, emphasizing that Boeing’s success hinges on its ability to deliver high-quality, safe products. “Restoring trust starts with meeting our commitments—whether that’s building high-quality, safe commercial aircraft, delivering on defense and space products, or servicing our products to keep our customers running 24/7,” Ortberg wrote.

Ortberg’s strategic vision also includes a renewed focus on collaboration and transparency. He has pledged to keep employees informed through regular updates, sharing progress and improvement areas. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better,” he stated. This approach is expected to foster a culture of accountability and continuous improvement, which is crucial for Boeing as it addresses its current challenges.

In addition to improving internal processes, Ortberg is focused on strengthening relationships with customers and industry partners. “In speaking with our customers and industry partners leading up to today, I can tell you that everyone wants us to succeed without exception. In many cases, they need us to succeed,” he emphasized. This support network is critical as Boeing works to overcome its current issues and rebuild trust within the industry.

Ortberg’s commitment to quality is further demonstrated by his decision to be based in Seattle, close to the commercial airplane programs. “I plan to be based in Seattle near the commercial airplane programs. I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome,” he mentioned in his message. This hands-on approach is expected to help identify and resolve production issues more effectively, ensuring that Boeing’s products meet the highest quality and safety standards.

Former colleagues and industry analysts have praised Ortberg’s focus on quality and strategic vision. “Kelly is not the kind of person to shoot from the hip. He’s deliberate and thorough, which is exactly what Boeing needs right now,” said Andrew Policano, a former business-school dean who worked closely with Ortberg at Rockwell Collins. Aviation analyst Richard Aboulafia echoed this sentiment, stating, “His experience and leadership style are exactly what Boeing needs to navigate through these troubled times and emerge stronger.”

By prioritizing quality, transparency, and collaboration, Ortberg aims to steer Boeing towards a more stable and prosperous future. His strategic vision and hands-on leadership are expected to drive meaningful change within the company, restoring its reputation as a leader in the aerospace industry.

Addressing Cultural and Operational Challenges

Kelly Ortberg’s appointment as Boeing’s CEO comes at a time when the company faces significant cultural and operational challenges. One of the most pressing issues is Boeing’s internal culture, which has been described as overly focused on production at the expense of quality and safety. This “push, push, push, go, go, go” mentality has been identified as a contributing factor to the company’s recent problems, including the two fatal 737 MAX crashes. Ortberg acknowledges these challenges and is determined to address them head-on.

“Our culture must evolve to prioritize safety and quality above all else,” Ortberg wrote in his message to employees. “We must create an environment where employees feel empowered to speak up about potential issues without fear of retribution.” This commitment to fostering an open and transparent culture is seen as a crucial step in rebuilding trust both within the company and with external stakeholders.

To facilitate this cultural shift, Ortberg plans to spend significant time on the factory floors, engaging directly with employees. “I’ll be on the factory floor in Renton today, talking with employees and learning about challenges we need to overcome, while also reviewing our safety and quality plans,” he stated. This approach is reminiscent of his time at Rockwell Collins, where he was known for his hands-on leadership style and for being deeply involved in the day-to-day operations.

Former colleagues have expressed confidence in Ortberg’s ability to transform Boeing’s culture. “Kelly is a very hands-on guy. He’ll get out on the shop floor and work directly with employees to understand their challenges and find solutions,” said Don Beall, former CEO of Rockwell International. This leadership style is expected to help bridge the gap between management and the workforce, fostering a more collaborative and supportive environment.

In addition to cultural changes, Ortberg is also focused on operational improvements. Boeing has been grappling with production delays, quality lapses, and increased scrutiny from regulators. “We need to get back to basics,” Ortberg emphasized. “This means ensuring that our production processes are efficient and that our products meet the highest standards of quality and safety.” He has already begun reviewing the company’s safety and quality plans, with a particular focus on addressing the issues that have led to recent production mishaps.

Industry experts believe that Ortberg’s experience and approach will be instrumental in driving these operational improvements. “Kelly’s deep understanding of the aerospace industry and his commitment to quality make him well-suited to tackle Boeing’s current challenges,” said Alan Mulally, former head of Boeing’s commercial business. By focusing on both cultural and operational changes, Ortberg aims to steer Boeing through its current crisis and set the company on a path to long-term success.

Overall, Kelly Ortberg’s comprehensive strategy to address Boeing’s cultural and operational challenges reflects his commitment to restoring the company’s reputation and ensuring its future stability. With his hands-on leadership and focus on transparency, safety, and quality, Ortberg is poised to lead Boeing through this critical period in its history.

Union and Workforce Impact

Kelly Ortberg’s leadership at Boeing is set to have a significant impact on the company’s unionized workforce. Boeing’s labor relations have been strained in recent years, particularly with the International Association of Machinists and Aerospace Workers (IAM), which represents a large portion of the company’s employees. The union has raised concerns about job security, working conditions, and the company’s approach to production and safety standards.

Ortberg’s message to employees highlighted his commitment to improving these relations. “I plan to engage directly with our union representatives to ensure that we are addressing their concerns and working collaboratively towards our common goals,” Ortberg wrote. This direct engagement is seen as a positive step towards rebuilding trust and fostering a more cooperative relationship between Boeing’s management and its workforce.

Union leaders have expressed cautious optimism about Ortberg’s appointment. “We are hopeful that Kelly Ortberg’s hands-on approach and his focus on safety and quality will lead to meaningful improvements in our working conditions,” said John Holden, President of IAM District 751. “We look forward to working with him to address the issues that have been affecting our members.”

One of the immediate challenges Ortberg faces is addressing the potential for a strike by IAM members. The union has been vocal about its demands for better job security and a commitment from Boeing to maintain production in the Seattle area. “Our members are prepared to take action if necessary, but we are optimistic that we can reach an agreement with the new leadership,” Holden added.

Ortberg’s decision to be based in Seattle and his plans to spend significant time on the factory floors have been well received by the union. “Having the CEO close to the production lines and understanding our day-to-day challenges is crucial,” said Mike Mulligan, a machinist at Boeing’s Renton facility. “It shows that he is serious about addressing our concerns and making improvements.”

The impact of Ortberg’s leadership on Boeing’s workforce extends beyond the unionized employees. His focus on transparency and open communication is expected to foster a more inclusive and supportive workplace culture. “I will be transparent with you every step of the way, sharing news on progress as well as where we must do things better,” Ortberg promised in his message to employees. This commitment to transparency is aimed at building trust and ensuring that all employees feel valued and heard.

Kelly Ortberg’s approach to labor relations and workforce engagement is set to play a crucial role in Boeing’s turnaround. By prioritizing direct engagement with union representatives, addressing key concerns, and fostering a culture of transparency and collaboration, Ortberg aims to rebuild trust and create a more positive working environment for all Boeing employees.

Financial Outlook and Market Response

The appointment of Kelly Ortberg as Boeing’s new CEO has had a notable impact on the company’s financial outlook and the market’s response. Ortberg’s reputation as a strategic thinker with a hands-on approach has instilled confidence among investors and industry analysts alike. As Boeing navigates through its turbulent times, Ortberg’s leadership is seen as a potential catalyst for the company’s recovery.

In the immediate aftermath of the announcement on July 31, 2024, Boeing’s stock saw a modest uptick. Market analysts attribute this rise to Ortberg’s track record at Rockwell Collins, where he successfully led the company through significant growth and transformation. “Ortberg’s experience in turning around Rockwell Collins makes him an ideal candidate to steer Boeing through its current challenges,” said Richard Aboulafia, an aviation analyst at Teal Group. “Investors are cautiously optimistic about his ability to replicate that success at Boeing.”

Financial experts are closely monitoring Ortberg’s strategy to address Boeing’s ongoing issues, including production delays and quality control problems. “Boeing’s financial performance has been underwhelming, with substantial operating losses in recent quarters,” noted Sheila Kahyaoglu, an aerospace and defense analyst at Jefferies. “However, Ortberg’s commitment to quality and operational efficiency could help reverse this trend.”

In his initial message to Boeing employees, Ortberg emphasized the importance of meeting commitments and restoring trust. “Restoring trust starts with meeting our commitments,” Ortberg wrote. “Whether that’s building high-quality, safe commercial aircraft or delivering on defense and space products, our success depends on our ability to deliver what we promise.” This focus on reliability and customer satisfaction is expected to resonate well with Boeing’s clients and stakeholders, potentially leading to improved financial performance in the coming quarters.

The market response has been tempered by the acknowledgment of the significant challenges ahead. Boeing’s recent financial results have highlighted the depth of the company’s issues, with an operating loss of $1.4 billion in the second quarter of 2024. “The financial recovery of Boeing will be a marathon, not a sprint,” said Peter Arment, an analyst at Baird. “Ortberg’s leadership is a positive step, but it will take time for the company to regain its footing and achieve sustainable profitability.”

Ortberg’s decision to relocate to Seattle and focus on the commercial airplane programs is also seen as a strategic move to be closer to Boeing’s core operations. “Being based in Seattle allows Ortberg to have a direct line of sight into the production challenges and to engage with the workforce more effectively,” said Ron Epstein, an aerospace analyst at Bank of America Merrill Lynch. “This hands-on approach is crucial for addressing the issues that have plagued Boeing’s production lines.”

While the road to recovery for Boeing is fraught with challenges, the appointment of Kelly Ortberg as CEO has injected a sense of cautious optimism among investors and industry stakeholders. His focus on transparency, quality, and operational efficiency, coupled with his hands-on leadership style, is expected to drive positive changes within the company. “We have what it takes to win, and I’m committed to working with you to focus the company in a way that makes us all proud to be a part of Boeing,” Ortberg stated in his message to employees. As Boeing embarks on this new chapter under Ortberg’s leadership, the market will be watching closely to see how his strategies unfold and impact the company’s financial trajectory.

]]> 606289 Jamie Dimon Predicts Economic Turbulence: An Analysis of JPMorgan CEO’s Recession Warning https://www.webpronews.com/jamie-dimon-predicts-economic-turbulence-an-analysis-of-jpmorgan-ceos-recession-warning/ Wed, 07 Aug 2024 20:27:20 +0000 https://www.webpronews.com/?p=606265 In a series of candid remarks, JPMorgan Chase CEO Jamie Dimon has once again issued a stark warning about the U.S. economy’s potential descent into recession. Speaking at various forums, including a notable interview on CNBC, Dimon detailed his concerns, highlighting several economic indicators that suggest turbulent times ahead.

Dimon’s Recession Prediction: Key Takeaways

Jamie Dimon, renowned for his economic foresight, expressed his belief that the U.S. economy is not out of the woods yet and could be heading toward a recession. “There’s still a chance of a recession,” Dimon stated, emphasizing the need for vigilance despite some positive economic signs. This sentiment aligns with his previous warnings, underscoring the persistent risks in the current economic landscape.

Economic Indicators and Warning Signs

Dimon pointed to several key factors contributing to his recession prediction:

  1. Interest Rates and Inflation: The Federal Reserve’s aggressive interest rate hikes to combat inflation have been a double-edged sword. While inflation has shown signs of cooling, the high borrowing costs are beginning to strain consumer spending and business investments. “The interest rate hikes are necessary, but they come with significant economic side effects,” Dimon noted.
  2. Geopolitical Uncertainty: Global tensions, particularly the ongoing conflict in Ukraine and its ramifications on energy markets, continue to pose significant risks. Dimon highlighted that geopolitical instability could exacerbate economic volatility, leading to further market disruptions.
  3. Corporate Earnings Pressure: Many companies, including those within JPMorgan’s portfolio, are experiencing squeezed profit margins due to rising input costs and supply chain challenges. Dimon mentioned, “Corporate earnings are under pressure, and this could lead to broader economic consequences if the trend continues.”
Consumer Sentiment and Spending

Dimon also touched upon consumer sentiment, which has shown signs of weakening. Despite a robust labor market, consumers are becoming increasingly cautious. “The consumer is still spending, but there’s a noticeable pullback in discretionary spending,” Dimon said, reflecting concerns over future economic stability.

Market Reaction and Economic Strategies

Following Dimon’s comments, financial markets responded with heightened caution. Investors are now grappling with mixed signals—solid corporate earnings in some sectors juxtaposed with Dimon’s recession warnings. This has led to increased market volatility as stakeholders try to navigate the uncertain terrain.

Policy Recommendations and Forward Guidance

Dimon offered several policy recommendations to mitigate the recession risks. He emphasized the importance of targeted fiscal policies to support vulnerable sectors and sustain consumer confidence. Additionally, he advocated for continued investment in infrastructure and technology to bolster long-term economic resilience.

Financial Sector Resilience

Dimon highlighted the resilience of the financial sector, emphasizing that banks, including JPMorgan, are well-capitalized and prepared to withstand economic shocks. “Our balance sheet is strong, and we are prepared for various economic scenarios,” Dimon assured. He also pointed out that regulatory reforms implemented after the 2008 financial crisis have strengthened the banking system.

Technological Investments and Innovations

In discussing the future, Dimon underscored the importance of technological investments. “Innovation in financial technology is crucial for maintaining competitiveness and enhancing customer experiences,” he said. JPMorgan has been at the forefront of adopting new technologies, from blockchain to artificial intelligence, to streamline operations and offer innovative services.

Global Economic Outlook

Dimon also addressed the broader global economic outlook, noting that while the U.S. faces significant challenges, it is not isolated. “Global economies are interconnected, and what happens in one part of the world can have ripple effects elsewhere,” he said. He emphasized the need for international cooperation to address global economic issues, particularly in trade and investment.

Navigating Uncertainty

As the economy stands at a potential crossroads, Jamie Dimon’s insights are a critical reminder of the complex interplay between monetary policy, geopolitical factors, and consumer behavior. While the path remains uncertain, Dimon’s prudent warnings and strategic recommendations provide a roadmap for navigating the potential economic turbulence.

Jamie Dimon’s outlook underscores the need for vigilance and strategic planning as the U.S. economy faces potential challenges. By understanding and addressing the underlying factors, policymakers, businesses, and consumers can better prepare for the future.

]]> 606265 Disney Posts Strong Q3 2024 Earnings Amid Streaming Profit and Theme Park Challenges https://www.webpronews.com/disney-posts-strong-q3-2024-earnings-amid-streaming-profit-and-theme-park-challenges/ Wed, 07 Aug 2024 20:00:11 +0000 https://www.webpronews.com/?p=606262 The Walt Disney Company reported its third-quarter earnings for fiscal 2024, showcasing resilience amidst mixed sector performance. Revenue was $23.16 billion, a 3.7% increase from the previous year, and net income swung to $2.62 billion from a $460 million loss. Key highlights included the first-ever streaming profit and robust box office results, though theme parks faced headwinds.

Streaming Profit Milestone

Disney’s streaming unit achieved a significant milestone this quarter, marking its first-ever profitability with an operating income of $47 million on $6.38 billion in revenue. This achievement came a quarter earlier than expected and demonstrates the success of Disney’s strategic focus on content and pricing. “We were losing $1 billion a quarter not that long ago,” said Chief Financial Officer Hugh Johnston. “This is a testament to our efforts in enhancing content quality and managing costs effectively.”

The company attributes much of this success to its premium content strategy. CEO Bob Iger emphasized, “The rise in the quality of Disney’s content justifies our price increases.” Notable releases such as “Inside Out 2” and “Deadpool & Wolverine” have driven substantial subscriber growth and engagement. Since its release, “Inside Out 2” has sold nearly $1.6 billion in tickets globally, while “Deadpool & Wolverine” has generated $824 million in global ticket sales.

Disney has also been proactive in adjusting its pricing strategy to reflect the enhanced value of its offerings. Recent price hikes for nearly all its streaming plans, effective in October, have been well-received by the market. “Every time we’ve taken a price increase, we’ve had only modest churn,” Iger noted, indicating strong consumer loyalty and satisfaction with the service.

Looking ahead, Disney expects continued growth in its streaming segment. The addition of high-quality content and innovative features, such as playlists and an improved recommendation engine, are aimed at increasing user engagement and reducing churn. The company forecasts further increases in both subscription numbers and revenue, positioning its streaming services for sustained profitability.

Theme Parks Face Pressures

Despite Disney’s overall strong financial performance, its Experiences segment, which includes theme parks, has shown signs of strain. Operating income for this unit fell by 3.3% to $2.22 billion, despite a slight revenue increase to $8.39 billion. CFO Hugh Johnston acknowledged the challenges, noting, “While attendance was flat, per-visitor spending rose slightly. However, increased costs and soft consumer demand have impacted our profitability.”

The decline in operating income has raised concerns among analysts. “We are seeing some normalization of post-COVID demand,” Johnston explained, emphasizing that the slight moderation in demand isn’t significant but noteworthy. This trend is particularly evident at U.S. theme parks, where competition for tourist dollars has intensified, especially with the Summer Olympics drawing visitors away from Disneyland Paris.

Looking ahead, Disney forecasts continued pressures in the theme parks business for the fourth quarter, expecting operating income to fall by mid-single-digit percentage points. CEO Bob Iger expressed cautious optimism, “With our diversified portfolio of businesses, we are confident in our ability to navigate these challenges.” He highlighted ongoing investments in new attractions and experiences, such as the DisneylandForward initiative and the upcoming Disney Treasure cruise ship, as key strategies to bolster long-term growth.

Johnston also noted the importance of technology and data analytics in managing guest demand and optimizing operations. “Our recent investments enable us to better manage fluctuations in demand while prioritizing the guest experience,” he said. Despite the near-term challenges, Disney remains committed to enhancing its theme park offerings and maintaining its position as a leader in the global entertainment industry.

Box Office and Content Success

Disney’s box office and content divisions have been a beacon of success this quarter, significantly contributing to the company’s overall positive performance. The entertainment giant’s theatrical releases, particularly “Inside Out 2” and “Deadpool & Wolverine,” have driven substantial revenue growth. “Inside Out 2” has become the highest-grossing animated film of all time, selling nearly $1.6 billion in tickets globally since its release. This success has not only bolstered Disney’s financials but also reinforced its dominance in the animation sector.

“The success of ‘Inside Out 2’ is a testament to our commitment to delivering high-quality content that resonates with audiences globally,” said CEO Bob Iger. This animated sequel’s strong performance helped the company’s theatrical film division report an income of $254 million, a significant turnaround from the $112 million loss recorded a year earlier. Moreover, “Deadpool & Wolverine” generated the highest-ever box office gross for an R-rated movie, earning $824 million in global ticket sales to date.

The synergy between Disney’s film releases and its streaming platforms has also been noteworthy. “With the release of major titles like ‘Inside Out 2,’ we’ve seen a surge in Disney+ subscriptions and viewership,” added Iger. This interplay between theatrical releases and streaming engagement highlights Disney’s effective multi-platform content strategy. Johnston further elaborated, “Our powerful franchises not only drive box office success but also enhance engagement across our streaming and consumer products divisions.”

Disney’s strategic focus on fewer but higher-quality films is paying off, as evidenced by the success of its recent releases and the anticipation for upcoming titles. “We are committed to maintaining the high standards of our content, which is evident in our future lineup including ‘Moana 2,’ ‘Mufasa: The Lion King,’ and ‘Avatar 3,’” Iger said. This focus on quality over quantity aims to ensure sustained profitability and audience engagement across all of Disney’s entertainment platforms.

Strategic Focus and Technological Advancements

Disney’s strategic focus on leveraging technological advancements continues to play a pivotal role in driving its success across various segments. The integration of advanced technologies into their operations is helping the company optimize its services and enhance the consumer experience. “Our investment in technology is a cornerstone of our strategy,” said CFO Hugh Johnston. “It allows us to manage guest demand, improve cost efficiency, and provide unparalleled experiences to our customers.”

The introduction of new features and updates on Disney’s streaming platforms is a key example of this technological integration. Disney’s CEO Bob Iger highlighted the ongoing efforts to enhance their streaming services, stating, “We’ve started our password-sharing initiative and are making significant improvements to our recommendation engines. These technological enhancements are essential for increasing engagement and reducing churn.” The company’s focus on technology extends to their advertising model as well, with innovative solutions such as the Disney Streaming Entertainment (DSE) ad offering, which optimizes advertising opportunities across their family of streaming apps.

Moreover, Disney’s use of data analytics to monitor and respond to market dynamics is a critical aspect of their strategy. “Our recent investments in technology and data analytics enable us to better manage fluctuations in guest demand while also continuing to prioritize the guest experience,” Johnston added. This capability is particularly beneficial for Disney’s theme parks and cruise lines, allowing the company to adapt to changing consumer behaviors and preferences effectively.

Disney’s technological advancements are also evident in their sports broadcasting strategy. The company’s commitment to enhancing ESPN’s digital presence is aimed at maintaining its leadership in sports entertainment. “Our strategy at ESPN has long prioritized giving sports fans increased options for how they consume content,” Iger explained. The upcoming launch of an ESPN tile on Disney+ is part of this strategy, offering subscribers seamless access to sports content alongside other Disney offerings.

These technological investments and strategic initiatives are designed to ensure Disney remains at the forefront of the entertainment industry. As Iger succinctly put it, “Our focus on quality, technological innovation, and strategic partnerships positions us well for long-term growth and success.”

Financial Outlook and Market Response

Disney’s Q3 2024 financial performance has generated a complex market response. Despite achieving a notable profit milestone in its streaming segment and strong box office successes, the company faces pressures in its theme parks division, influencing its overall market position. The company’s quarterly profit surged to $2.62 billion from a $460 million loss a year earlier, with revenue rising 3.7% to $23.16 billion. However, Disney’s shares were down 2.9% following the earnings announcement, reflecting investor concerns about future challenges.

CFO Hugh Johnston provided insights into Disney’s strategic financial management. “Our consolidated financial performance was strong this quarter. In fiscal Q3, revenue grew 4%, total segment operating income grew 19%, and diluted earnings per share excluding certain items grew 35%,” Johnston noted. This performance underscores Disney’s ability to leverage its diverse portfolio and strategic initiatives effectively.

Looking ahead, Disney has raised its forecast for full-year growth in adjusted earnings per share to 30% from 25%, signaling confidence in its strategic direction. Johnston emphasized the company’s commitment to cost management and operational efficiency: “We continue to focus on driving incremental cost savings above and beyond our previously stated target as we deliver on our strategic priorities.”

CEO Bob Iger also expressed optimism about Disney’s future growth, highlighting the company’s strong pipeline of content and technological advancements. “With our complementary and balanced portfolio of businesses, we are confident in our ability to continue driving earnings growth,” Iger said. He pointed to upcoming releases such as “Moana 2,” “Mufasa: The Lion King,” and “Avatar 3” as key drivers of future revenue and profitability.

Disney’s Q3 2024 results demonstrate the company’s resilience and strategic agility in navigating a challenging market environment. While pressures in the theme parks segment persist, the success of the streaming division and robust content slate provide a strong foundation for future growth. As Johnston summarized, “Our progress in the quarter is a result of the strength of our portfolio, which best positions us to achieve even greater success over the long term.”

]]> 606262 Tech Stocks Take a Dive Amid Recession Fears: A Market in Turmoil https://www.webpronews.com/tech-stocks-take-a-dive-amid-recession-fears-a-market-in-turmoil/ Fri, 02 Aug 2024 16:02:53 +0000 https://www.webpronews.com/?p=606136 The stock market experienced a dramatic downturn on Friday, with the S&P 500 heading for its worst session in nearly two years. This sharp decline was fueled by a much weaker-than-anticipated jobs report for July, raising concerns that the U.S. economy could be on the brink of a recession.

Major Indices and Tech Giants Hit Hard

The S&P 500 dropped 2.6%, marking its largest one-day sell-off since 2022. The Nasdaq Composite fell 3.1%, pushing it into correction territory, while the Dow Jones Industrial Average plunged 943 points, or 2.3%. This significant market movement highlights investors’ growing anxieties about the U.S. economy’s health.

“Investors are grappling with the possibility of a recession,” said Dan Ives of Wedbush Securities. “The tech sector, which has been a cornerstone of market strength, is now bearing the brunt of these economic concerns.”

Apple and Amazon Struggle to Maintain Ground

Tech giants like Apple and Amazon were at the forefront of the decline. Apple managed to hold on to some gains, but Amazon had its worst day of the year, falling 12.5% after missing revenue estimates and issuing a disappointing forecast. These losses weighed heavily on the consumer discretionary sector, leading to its worst day since May 2022.

“Amazon’s results were a wake-up call for investors who have been betting heavily on the tech sector,” Ives noted. “The company’s cautious outlook on consumer spending is a clear signal that we could be heading into rough waters.”

Nvidia and Intel Among the Biggest Losers

Nvidia and Intel also saw substantial losses. Nvidia dropped more than 5.5%, following a 6% decline the previous day. Intel faced a dramatic 29% drop after announcing weak guidance and layoffs. This steep decline marked Intel’s worst share plunge since 1982, erasing over $35 billion in market value.

“Elliott Management recently described Nvidia as being in a bubble, with AI technology overhyped and not living up to its promise. Today’s market action seems to be reflecting those concerns,” noted a report from the Financial Times.

Intel’s results were particularly alarming, with the company revealing plans to lay off 15% of its workforce, around 17,500 employees, and suspend its dividend. “This is a significant restructuring effort as Intel attempts to refocus on growth areas,” said Susquehanna analyst Christopher Rolland. “However, such a large-scale layoff raises questions about Intel’s ability to compete in the AI and data center markets.”

Flight to Safety as Treasury Yields Decline

Investors seeking safety poured into bonds, driving the 10-year Treasury yield to its lowest level since December, at 3.82%. “The flight to quality indicates that investors are increasingly wary of equities in this uncertain economic environment,” said Yung-Yu Ma, chief investment officer at BMO Wealth Management.

“Bonds are traditionally seen as a safe haven during times of market turmoil,” Ma explained. “Given the current volatility, it’s not surprising to see a significant shift towards Treasury securities.”

Job Market Data Fuels Recession Fears

Disappointing job growth figures exacerbated the sell-off. The Labor Department reported that nonfarm payrolls grew by just 114,000 in July, down from 179,000 in June and well below the 185,000 expected by economists. The unemployment rate also rose to 4.3%, the highest since October 2021.

“The weak jobs report is a clear signal that the labor market is cooling faster than anticipated,” said Neil Dutta, head of economics at Renaissance Macro Research. “This could be a prelude to a broader economic slowdown.”

Tech Sector’s Volatile Week

This downturn capped off a volatile week for the tech sector. The Nasdaq, heavily weighted with technology stocks, saw sharp declines, exacerbating concerns about the sector’s sustainability in the face of economic headwinds. Nvidia, a key player in the AI revolution, saw its share price plummet as investors questioned the long-term viability of its growth amid the broader market sell-off.

“The tech sector has been riding high on the AI hype train,” said Dutta. “But recent market behavior suggests that investors are now reassessing the valuations of these high-flying stocks.”

Market Analysts Urge Caution

Analysts are advising caution, noting that while the market was overbought in July, the current correction is part of a natural course in a bull market. “It’s not the end of the AI story,” reassured Adam Turnquist, chief technical strategist at LPL Financial. “However, it’s a reminder that valuations need to be grounded in reality.”

Despite the turmoil, some experts remain optimistic about the tech sector’s long-term potential. “The AI revolution story is intact,” said Ives. But we need to brace for volatility as the market digests these economic signals.”

Economic Indicators and Federal Reserve Policy

As investors grapple with the implications of the latest economic data, all eyes will be on the Federal Reserve’s next moves. In the coming months, the central bank’s decisions will be critical in shaping market sentiment and the broader economic outlook.

“Whether or not the Fed will cut rates in September is now a pressing question,” said BMO’s Ma. “The markets are clearly signaling that they expect action, and failure to deliver could lead to further market instability.”

Reactions from Market Participants

Traders and market analysts were quick to react to the volatile market conditions. “The sell-off is a reaction to the confluence of negative economic indicators and disappointing corporate earnings,” said John Stoltzfus, chief investment strategist at Oppenheimer Asset Management. “Investors are recalibrating their expectations in light of these developments.”

“There’s a lot of uncertainty right now,” added Liz Ann Sonders, chief investment strategist at Charles Schwab. “We’re seeing a flight to safety, which is typical when there are heightened fears about economic stability.”

Looking Ahead: A Market in Flux

In the meantime, the tech sector, which has been a significant driver of market gains in recent years, faces a period of uncertainty. As Ives pointed out, “It’s not a time to panic, but it’s definitely a time to be vigilant.”

The recent plunge in tech stocks underscores the volatile and unpredictable nature of the current market environment. As recession fears mount and economic indicators continue to fluctuate, investors are faced with the challenge of navigating a landscape fraught with uncertainty.

“The current market conditions are a stark reminder of the delicate balance between innovation-driven growth and economic stability,” said Dutta. “Investors must remain cautious and informed as we move through these turbulent times.”

The Search for Stability

The stock market’s dramatic sell-off reflects broader concerns about the U.S. economy’s health and the tech sector’s future. As market participants await further guidance from the Federal Reserve and continue to digest economic data, the need for vigilance and strategic investment has never been greater.

“The next few months will be critical in determining the direction of the market,” said Stoltzfus. “Investors should stay informed and be prepared for continued volatility.”

In this state of flux, staying informed and agile is essential for anyone involved in the tech sector and the broader market. The changes we see today are just the beginning of a new chapter in the economic landscape that promises to be both challenging and rewarding for those who are prepared to navigate it.

]]> 606136 Elon Musk Blasts California Law, Announces Headquarters Move https://www.webpronews.com/elon-musk-blasts-california-law-announces-headquarters-move/ Tue, 16 Jul 2024 20:34:36 +0000 https://www.webpronews.com/?p=605793 Tech Mogul Responds to New Legislation on Parental Notification with Major Corporate Shift

In a surprising and bold series of announcements, Elon Musk has lashed out against a new California law that bans schools from requiring parental notification if a child identifies as transgender. The tech billionaire took to X, the social media platform formerly known as Twitter, to voice his strong opposition to Governor Gavin Newsom’s signing of AB1955.

Musk’s Reaction to AB1955

Governor Newsom’s signing of AB1955 has stirred significant controversy, particularly among those who believe it infringes on parental rights. The law, which prohibits schools from implementing rules that mandate parental notification if a student identifies as transgender, has been praised by some as a necessary protection for vulnerable youth. However, it has also faced criticism from those who argue it undermines parental authority.

Musk did not mince words in his reaction. “The state will take away your kids in California,” he posted on X, sparking a flurry of responses and retweets. In another post, Musk echoed sentiments shared by Joe Lonsdale, co-founder of Palantir, who lamented the state of the American education system. Musk’s response: “This would be great,” indicates his support for Lonsdale’s call for an education system emphasizing logic and economic thought experiments.

Announcing Major Moves

Musk’s criticism of the new law didn’t stop at social commentary. He used the platform to announce significant changes for his companies. “This is the final straw,” Musk declared. “Because of this law and the many others that preceded it, attacking both families and companies, SpaceX will now move its HQ from Hawthorne, California, to Starbase, Texas.”

This announcement was followed by another bombshell: “And HQ will move to Austin.” The relocation of the headquarters for both SpaceX and X represents a significant shift away from California, a state long considered a hub for innovation and technology. The move to Texas, known for its business-friendly environment and lower regulatory hurdles, signals a strategic realignment for Musk’s enterprises.

Backlash and Support

Musk’s announcements have drawn mixed reactions. Caitlyn Jenner, a prominent figure in the transgender community, voiced her support for Musk’s stance, reposting his comments with the message: “Strong move. The state is not the parent! Parental Rights >.”

Critics, however, argue that Musk’s response to the legislation is an overreaction. They contend that the law is intended to protect transgender youth who may face unsafe or unsupportive home environments. Supporters of the law argue that requiring parental notification could put these young people at risk of harm.

The Broader Impact

The decision to move SpaceX and X’s headquarters marks a significant moment for the California tech landscape. Another one of Musk’s ventures, Tesla, has already moved its headquarters to Texas, citing similar frustrations with California’s regulatory environment. The relocation of SpaceX and X further underscores California’s challenges in retaining its tech giants amid growing discontent over state policies.

Musk’s moves also raise questions about California’s future as a leader in technology and innovation. With major companies relocating, the state may face economic repercussions and a potential talent drain as employees follow their employers to new locales.

While Musk’s announcements’ immediate impacts are already making waves, the long-term effects remain to be seen. As California grapples with balancing progressive policies with retaining its economic base, other states like Texas may continue to benefit from the exodus of companies seeking more favorable business climates.

Musk’s outspokenness and decisive actions highlight the influence tech leaders wield in shaping industry trends and broader societal debates. As the dust settles, the conversation around parental rights, corporate relocation, and state policies will continue to evolve.

]]> 605793 US Senators Take Step Toward Banning Member Stock Trading https://www.webpronews.com/us-senators-take-step-toward-banning-member-stock-trading/ Thu, 11 Jul 2024 18:48:04 +0000 https://www.webpronews.com/?p=605679 A bipartisan group of US senators has struck a deal that would see a ban on stock trading by active members of Congress.

Lawmakers from both chambers have repeatedly come under fire for making beneficial stock trades based on information they gained access to in briefings. Under any other circumstance, such behavior would be prosecuted as insider trading, but Congress was exempt.

A bipartisan group of senators—Gary Peters, Jeff Merkley, Josh Hawley, and Jon Ossoff—appears to be making headway toward banning the controversial practice. The legislation is build on Merkley’s ETHICS Act and would “ban Members of Congress, their spouses, and their dependents from holding, buying, or selling stocks.” The ETHICS Act ban would also apply to the President and Vice President. Elected officials, spouses, and dependents would have to divest themselves of covered assets beginning in 2027.

“The public should be confident that federal elected officials are making decisions that are in the best interests of the American people, not their own personal finances,” said Senator Peters. “I appreciate the leadership from Senators Merkley, Hawley and Ossoff on this important issue, and I’m grateful to them for working closely with me to draft this bipartisan, commonsense agreement that strengthens accountability for the public and prevents bad actors from taking advantage of their positions for their personal financial gain. I’m committed to advancing this bill through my committee and sending it one step closer to becoming law to rebuild trust in government and give Americans peace of mind that Congress is always working on their behalf.”

“Members of Congress are elected to serve the public—not their stock portfolios. And no member should be thinking about their personal gain when voting on bills or writing legislation,” said Senator Merkley, the ETHICS Act lead sponsor. “The ETHICS Act ends these flagrant conflicts of interest by banning stock trading by lawmakers and their families. In a huge step forward, this bill will be marked up and receive bipartisan support in committee. The whole Senate should pass this bill and do so soon.”

“Congress should not be here to make a buck, Congress should be here to serve the people. There is no reason why members of Congress ought to be profiting off of the information that only they get and the rest of the American people don’t get,” said Senator Hawley. “This bill takes a giant step forward and I’m proud of the fact that it’s going to be voted on in Senator Peters’ committee.”

“Three years ago, I introduced landmark legislation to ban stock trading by Members of Congress. Today, after helping lead years of intensive bipartisan negotiations, I can report progress toward this necessary reform,” Senator Ossoff said. “Georgians overwhelmingly agree: Members of Congress should not be playing the stock market while we make Federal policy and have extraordinary access to confidential information. We still have a long way to go to pass this bill, but today’s bipartisan announcement is a major step forward.”

If the measure passes, it would close a loophole that many have felt should never have existed.

]]> 605679 Andreessen Horowitz Wants to Manage the Finances of Startups It Invests In https://www.webpronews.com/andreessen-horowitz-wealth-management/ Sun, 07 Jul 2024 19:47:01 +0000 https://www.webpronews.com/?p=518095 VC firm Andreessen Horowitz (a16z) may be looking to expand its services by managing the finances of startups it invests in.

According to Bloomberg, the company recently hired Michel Del Buono as chief investment officer. His duties will include overseeing a range of wealth-management services.

Providing wealth-management services could be a highly profitable business for the firm. Companies usually charge 1% of a client’s assets, with profits reaching as high as 50%.

While a16z did confirm Del Buono’s hiring to Bloomberg, it declined to comment on any future business plans.

]]> 518095 US Agencies Request the Most User Data From Big Tech, Apple Complies the Most https://www.webpronews.com/us-agencies-request-the-most-user-data-from-big-tech-apple-complies-the-most-2/ Thu, 04 Jul 2024 17:07:05 +0000 https://www.webpronews.com/?p=522547 Americans concerned about their user data falling into the hands of foreign governments may want to look closer to home.

According to new research by VPN provider SurfShark, the US government makes the most requests for user data from Big Tech companies than any other jurisdiction in the world. The company analyzed data requests to Apple, Google, Meta, and Microsoft by “government agencies of 177 countries between 2013 and 2021.”

The US came in first with 2,451,077 account requests, more than four times the number of Germany, the number two country on the list. In fact, the US made more requests than all of Europe, including the UK, which collectively came in under 2 million.

While the US and EU were responsible for a combined total of 60% of all data requests, the US “made 8 times more requests than the global average (87.9/100k).”

The number of accounts being accessed is also growing, with a five-times increase in requests from 2013 to 2021. The US alone saw a 348% increase during the time frame, and the scope and purpose of the requests are expanding.

“Besides requesting data from technology companies, authorities are now exploring more ways to monitor and tackle crime through online services. For instance, the EU is considering a regulation that would require internet service providers to detect, report, and remove abuse-related content,” says Gabriele Kaveckyte, Privacy Counsel at Surfshark. “On one hand, introducing such new measures could help solve serious criminal cases, but civil society organizations expressed their concerns of encouraging surveillance techniques which may later be used, for example, to track down political rivals.”

The report also sheds light on which companies comply the most versus which ones push back against requests. For all of its privacy-oriented marketing — “what happens on your iPhone stays on your iPhone” — Apple complies with data requests more than any other company, handing it over 82% of the time.

In contrast, Meta complies 72% of the time, and Google does 71% of the time. Microsoft, on the other hand, pushes back the most among Big Tech companies, only handing data over 68% of the time.

The findings may also put a dent in US efforts to ban TikTok and other foreign apps under the guise of protecting user privacy and data.

]]> 588613 One-Third of Organizations Struggle With Data Loss Prevention Systems https://www.webpronews.com/one-third-of-organizations-struggle-with-data-loss-prevention-systems-2/ Tue, 02 Jul 2024 01:58:08 +0000 https://www.webpronews.com/?p=522427 The Cloud Security Alliance (CSA) has bad news for the industry, saying that nearly one-third of organizations struggle with data loss prevention (DLP) systems.

The CSA is an organization dedicated to helping secure cloud computing. A survey the organization conducted with Netskope found that DLP solutions are a critical component used in cloud security.

Unfortunately, that’s where the good news ends. While companies are relying on DLP systems, nearly a third struggle to use them effectively.

Among the top challenges cited by organizations are management difficulties (29%), too many false positives (19%), the need for manual version upgrades (18%), and deployment complexity (15%).

“DLP solutions are an integral part of organizations’ data security strategy, but leaders are still struggling with this strategy and the implementation of solutions, especially for how complicated legacy and on-prem based solutions are to manage and maintain,” said Naveen Palavalli, Vice President of Products, Netskope. “These findings highlight the need for a comprehensive and easy-to-use cloud delivered data protection solution that integrates into their existing security controls and is a key tenant of their Zero Trust security strategy.”

Cloud security is increasingly in the spotlight as more and more organizations experience data breaches at a time when the cloud is becoming integral to more companies and industries.

The Biden administration has signaled it is preparing to regulate cloud security in an effort to better protect organizations. If the CSA’s findings are any indication, it looks like the industry could use the help.

]]> 588612 Microsoft Combines the Power of Python and Excel https://www.webpronews.com/microsoft-combines-the-power-of-python-and-excel/ Tue, 25 Jun 2024 14:54:25 +0000 https://www.webpronews.com/?p=598343 Microsoft has given Excel a major upgrade, unveiling Python in Excel to give users access to the power of Python’s data tools.

Python is one of the most popular languages for data processing and analytics, thanks to its ease of use, versatility, and powerful features. Microsoft is now giving users the ability to leverage that power with a Public Preview of Python in Excel, according to a company blog post:

Now you can do advanced data analysis in the familiar Excel environment by accessing Python directly from the Excel ribbon. No set up or installation is required. Using Excel’s built-in connectors and Power Query, you can easily bring external data into Python in Excel workflows.

We’re partnering with Anaconda, a leading enterprise grade Python repository used by tens of millions of data practitioners worldwide. Python in Excel leverages Anaconda Distribution for Python running in Azure, which includes the most popular Python libraries such as pandas for data manipulation, statsmodels for advanced statistical modeling, and Matplotlib and seaborn for data visualization.

The feature is already gaining fans among customers.

“The ability to run Python in Excel simplifies McKinney’s reporting workflows. We used to manipulate data structures, filter, and aggregate data in a Jupyter Notebook, and build visuals in Excel,” said Greg Barnes, McKinney Executive Director of Data and Analytics.  “Now we can manage the entire workflow in Excel. This is going to make Excel that much more powerful and make Python more accessible across the organization. Python support is the most exciting update for Excel in my career!”

]]> 598343 Julian Assange to Go Free https://www.webpronews.com/julian-assange-to-go-free/ Tue, 25 Jun 2024 01:13:11 +0000 https://www.webpronews.com/?p=605377 After years of being in exile and fighting extradition to the US, Julian Assange has reached a plea deal with the US that will see him go free.

Assange was sought by US authorities for his role in leaking military secrets via his WikiLeaks website. According to CNN, Assange will plead guilty in exchange for prosecutors agreeing to a 62-month sentence that credits him for the 62 months he has already served in a London prison.

The deal is a major win for Assange who faced 18 counts that could have resulted in a sentence of 175 years. The deal will finally allow Assange to return to his home country of Australia.

As CNN points out, Australian officials have been pushing the US to accept a deal, with President Joe Biden hinting in recent months that such a deal might be possible.

The deal still requires a judge to sign off on it.

]]> 605377 AI Non-Profit Poaches Apple’s Head of Machine Learning For CEO https://www.webpronews.com/ai-non-profit-poaches-apples-head-of-machine-learning-for-ceo/ Fri, 21 Jun 2024 15:12:20 +0000 https://www.webpronews.com/?p=524363 Apple’s head of machine learning, Ali Farhadi, is leaving the company to become CEO of an AI non-profit.

Ali Farhadi joined Apple from Allen Institute for AI (AI2) in 2020, when the Cupertino company bought Xnor.ai, which Farhadi co-founded while at AI2. Farhadi went on to head up Apple’s machine learning efforts.

Farhadi is now rejoining the institute he previously spent six years with, only this time as CEO.

“As we face unprecedented changes in the development and usage of AI, I could not think of a better time to return to AI2 as CEO,” said Farhadi. “Today more than ever, the world needs truly open and transparent AI research that is grounded in science and a place where data, algorithms, and models are open and available to all. I believe this radical approach to openness is essential for building the next generation of AI. The world class researchers and engineers at AI2 are uniquely positioned to lead this new open and trusted approach to AI development.”

“Ali is the truly rare leader who combines expertise as an executive, entrepreneur, academic, and researcher. Throughout his career, he has demonstrated the transformative power of AI through his unique ability to channel deep scientific research into product solutions,” said Dr. Peter Lee, member of AI2’s board of directors and corporate vice president of Microsoft Research & Incubations. “As the premier AI research and engineering nonprofit, AI2’s work to advance the science and impact of artificial intelligence on a global scale has never been more critical. We are thrilled that Ali will lead the organization’s next chapter and carry on Paul Allen’s vision for AI as a positive force in the world.”

Farhadi will begin his new role effective July 31.

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