- Front Research
- Posts
- Google's AI-Powered Search Threatens News Publishers' Revenue Streams
Google's AI-Powered Search Threatens News Publishers' Revenue Streams
Tech brief: 6 | AI: 6 | VC & Startups: 4 | Consumer Tech: 7 | Cloud & SaaS: 2
Kristoffer Lindström
May 16, 2024
In partnership with
TECH BRIEF
Tesla is set to lay off an additional 601 employees at its California facilities, a move resulting from intensifying price competition and falling sales. This is part of a global job reduction strategy that will see over 10% of Tesla's workforce cut. CEO Elon Musk is aiming to reduce Tesla's headcount by 20%. In contrast, Ford Motor Co is grappling with losses from electric vehicles and is seeking to mitigate these through price cuts, fast-tracking smaller EVs, and addressing quality issues.
Netflix announced plans to build its own ad tech platform, revealing a shift from its collaboration with Microsoft. Netflix will compete against industry giants like Google and Amazon. The move aims to develop personalized and targeted advertisements for its 270 million subscribers, as the firm experiments with episodic advertisement campaigns. Netflix anticipates expanding its buying capabilities in partnership with Magnite, The Trade Desk and Google's Display & Video 360.
Cisco's Q3 revenue dipped 13% YoY to $12.7B, beating an estimate of $12.53B but reporting a net income drop of 41% YoY to $1.89B. Despite sales decline, the networking giant's stock grew 8%. The company's weakened performance is attributed to clients installing equipment received in recent quarters. Cisco's $28B acquisition of security software maker Splunk boosted revenue by $413M. The firm's FY 2024 revenue forecast indicated a rise above estimates while strengthening its full-year adjusted earnings forecast.
YouTube is expanding its program "Creator Takeovers," allowing advertisers to purchase inventory on channels comprising the top 1% of platform content. The platform continues to redefine the concept of television, as viewers watch over one billion hours of content daily. The platform also announced a deal with Google and Scripps Sports to stream locally televised WNBA Friday night games on YouTube TV, starting from May 31.
Google's adoption of its powerful AI model, Gemini, in its search engine could spell disaster for traffic-dependent news publishers, as the tech giant aims to answer user queries directly without needing link clicks. Despite Google claiming this will benefit publishers by increasing traffic, industry representatives argue it will diminish their already dwindling numbers and put livelihoods at risk.
FOCUS TOPICS
Our Focus topics are for members who want to gain an extra advantage. Here, we create news briefing reports for AI, VC & Startups, Consumer Tech, Cloud & SaaS, eCommerce, Social platforms, and Fintech.
Unlock all Focus topics by becoming a PRO member for only $5/mo. We will also remove all in-content sponsor ads.
Try it for free for 14 days.
AI
Colorado and Connecticut made headlines by launching regulatory initiatives for artificial intelligence…
Today's report features 6 AI news stories. Unlock by going PRO.
VC & Startups
Roundtable has launched a micro fund-as-a-service product to simplify the establishment of VC funds, enabling…
Today's report features 4 VC & Startup news stories. Unlock by going PRO.
Consumer Tech
Netflix is planning to launch its own advertising technology platform, taking on industry giants like Google and Amazon. The move follows a…
Today's report features 7 Consumer Tech news stories. Unlock by going PRO.
Cloud & SaaS
Palo Alto Networks is set to acquire IBM's QRadar software-as-a-service assets, forging a new partnership focused on…
Today's report features 2 Cloud & SaaS news stories. Unlock by going PRO.
Reply