Technology stocks had a relatively quiet week although there were increased signs that companies like Facebook and Apple (AAPL Quick QuoteAAPL - Free Report) were getting more serious about not just content acquisition but also content creation. While this may not be in direct competition with Netflix (NFLX Quick QuoteNFLX - Free Report) it does look like competition for Alphabet’s (GOOGL Quick QuoteGOOGL - Free Report) YouTube, Spotify and Pandora . It’s also definitely competition for eyeballs in what is limited free time for all-  

Facebook TV App

Facebook has launched a new TV app for Amazon Fire TV, Apple TV and Samsung Smart TV, with possible plans to further expand to other platforms like Microsoft Xbox, Sony PlayStation and other streaming devices. While this will likely enable/support longer video formats, Facebook has said its intention is not to compete with Netflix but rather to enable Facebook users to watch their preferred video on just about any screen of their choice (and that includes TV screens).

Of course that’s not the only video announcement Facebook made. The company says that henceforth, videos will play automatically with the sound turned on by default (if the device sound is turned on) and the window will retreat to the bottom corner of the screen so you can keep watching the video while scrolling through your newsfeed. Facebook says that testing is showing a positive reaction from users, although it’s obvious that not everyone will be overjoyed.

Facebook is also reportedly in talks with music labels to bring their content to the app, which seems like an open challenge to YouTube, Google’s competing site. For labels, the new distribution channel will increase their leverage against YouTube for more favorable terms. On the flip side, the chances of piracy will increase given the nature of Facebook’s free platform.

The increased scope for advertising is also an indication that the company is gearing up to grab its share of TV ad dollars.

Apple Getting Ready to Debut Reality Show

Eddie Cue, Apple’s SVP of Internet software and services used the Recode Media Conference to express a lot of enthusiasm for Apple’s soon-to-be released “Planet of the Apps” reality show on its music subscription service. Contestants will get 60 seconds to explain their idea on an escalator and could win up to millions in venture capital funding if judges will.i.am, Jessica Alba, Gary Vaynerchuk and Gwyneth Paltrow approve. This is the first attempt by Apple to create original content and will likely be joined by Carpool Karaoke in April (Apple bought out the unscripted version of this show in the summer of last year).

Google Fiber Restructuring

Alphabet has been trimming staff at its Access unit, which is responsible for its high-speed Internet service called Fiber. But last week, the trimming was more in the nature of hacking as it transferred hundreds of employees to other units, retaining just enough to work in the field. The unit also has a new CEO in Greg McCray, who was formerly CEO of Aero Communications and currently also serves on the board of telecom company CenturyLink.

The changes while significant are not really surprising, because Google has had a lot of trouble with Fiber not only because of the expense but also because of tussles with telecom companies over their control on telecom poles. In fact, ever since its acquisition of WebPass last year, speculation has been rife that the company will replace or reduce fiber deployment with a cheaper wireless service. That plan seems to have crystallized now as Google cuts staff but remains committed to expanding its Fiber service.

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Corporate

Aussie Banks Respond to Apple Statement: In response to Apple’s contention that the Commonwealth Bank of Australia, National Australia Bank Ltd., Westpac Banking Corp. and Bendigo & Adelaide Bank Ltd were looking for a free ride, they have told the Australian Competition & Consumer Commission (ACCC) that on the contrary, Apple’s policies attempted to prevent competition in wallets. Because if Apple allowed them access to its NFC antenna, they would pledge their participation in the Apple Pay rollout.

Australian law allows such collective bargaining, provided it is approved by the government. In its draft ruling, the ACCC denied the banks’ request. The final ruling is expected in March and in the meantime, the Australian Retailers Association have backed the banks, making their own submission that the collective negotiations would be beneficial for “all banks, merchants, app developers and ultimately customers in Australia and overseas.”

Facebook Seeks Independent Media Audit: Facebook has agreed to be audited by Media Rating Council, an industry body that advertisers trust for ad measurement metrics. Ad prices on the social network have been rising despite the fact that Facebook has repeatedly come out with statements seeking to rectify viewership numbers.

The company has therefore been under slight pressure to mend relationships with advertisers. The agreement should increase transparency and instill confidence in advertisers, which are directly responsible for its bread and butter.

Mark Zuckerberg Talks: The Facebook CEO wrote a long-winded essay sharing his long-term vision for the social network that mainly covered the importance of a global community in an increasingly individualistic world. The purpose of the “mission statement” wasn’t really clear since most government bodies in the U.S. and elsewhere don’t have a problem with people connecting on the social network and there aren’t any bans as such on people connecting even if they later turn out to be terrorists. Of course Facebook has access to a boatload of data on people that governments might ask for (as they have been doing).

New Technology/Products

Facebook Gets into Recruitment Services: Facebook has found another use for its sprawling network: it is now connecting employers with employees. While LinkedIn (now part of Microsoft) has been around for a while, the site is more popular with higher-income groups. Facebook on the other hand has people from every walk of life and employers of every kind on its network, so it’s in a very good position to corner a much larger section of the market than LinkedIn ever reached.

Google Loon Tech Improves: Google’s Project Loon may get to market sooner now that the company has found a way of moving them more efficiently. According to a blog post from Astro Teller, head of its moonshots division called Google X, the company now has the algorithms necessary to direct groups of balloons from their point of launch to their points of deployment (remote area where Internet access is required) within a few weeks. Earlier this took a few months.

The announcement was made after the company successfully launched its Internet beaming balloons from Puerto Rico and directed them towards Peru. The loon project is already testing in Sri Lanka and Peru although testing in Indonesia, the other country that has approved the project, is yet to commence.

Amazon Echo, Google Home Taking Calls: The home automation devices from Google and Amazon (AMZN Quick QuoteAMZN - Free Report) may soon be equipped with phone calling capabilities according to the WSJ, which cited its sources. The idea is to keep users away from their phones as much as possible when in the house, so they don’t get distracted into using other services like Facebook. Or maybe it’s just to help people get their calls even when they have both hands full.

AWS Launches Chime: Amazon’s AWS has launched a video conferencing software suite called Chime that competes with Microsoft’s Skype for Business, Cisco’s WebEx and others. Other than the basic version for which it doesn’t charge, a Plus version with IT admin tools and screen-sharing comes for $2.50 per user per month and a Pro version that supports upto 100 attendees at $15. Microsoft charges $5 and $12.50 for the Office 365 Business Essentials and Business Premium packages, respectively. Cisco charges $69 on the basis of the number of hosts, irrespective of the number of attendees.

HP-Sure Click: HP has collaborated with Bromium to introduce a hardware based security solution for unsafe Internet browsing. The solution, called HP Sure Click is activated every time a user accesses the browser, which then isolates the browsing session from other files/documents. So if malware or other malicious software opens up, other tabs or the system itself remains uninfected.  

M&A and Collaborations

Microsoft Collaborates with India’s Tata Motors: The two companies have inked a technology collaboration deal that will see Microsoft (MSFT Quick QuoteMSFT - Free Report) deliver its connected vehicle technologies (artificial intelligence, machine learning, IoT) through Azure. In exchange, Tata Motors customers will have a better experience, whether by way of location-based points of interest, shopping centers or route assistance, or things like information on road conditions, vehicle health, etc.

Some Numbers

Google Leads in Digital Travel Ads: Based in part on a meeting with industry research firm Skift, RBC Capital analyst Mark Mahaney believes that Google will never grow into an online travel agency, i.e. it will never compete in travel fulfillment (including distribution and customer service). Skift estimates that Google accounted for 90% of travel ads in 2016, generating $12 billion in revenue. The biggest spenders on Google are Priceline, Expedia and TripAdvisor.

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