Lab Weekly — 08/31/2018
Algorithms rule the world; New podcast on AR/VR; Innovation news and stats of the week
Lab Originals
How Brands Can Survive An Increasingly Algorithmic World
From social media to online shopping, algorithms have long been a crucial but mysterious part of the digital ecosystem. In recent years, the spread of algorithmic decision-making is quickly accelerating and starting to cause profound real-world consequences on our culture and consumer behavior. In this week’s original piece, we unpack the benefits and dangers of trusting algorithms, along with some survival tips for brands looking to keep control in a world increasingly runs on algorithms.
In case you missed it…
Alexa, Where Are We Going With This?
Evaluating the voice assistants & conversational interfaces space in 2018
The Renaissance of Physical Retail
How technology and new strategies are saving stores from the “retail apocalypse”
How the future of television will test consumer loyalty and rebuild every industry
Floor 9 Podcast
Episode 23: The State of VR vs. AR feat. Tony Parisi
This week, we had the pleasure of chatting with Tony Parisi from Unity on what is going on right now in Virtual Reality (VR) and Augmented Reality (AR). Starting with the VR space, we discussed the challenges that VR faces in consumer adoption and the enterprise applications of VR before moving on to AR. Tony shared some interesting insider takes on the Magic Leap headset and we talked about how and why mobile is driving AR adoption and more. This is a fast-paced episode jam-packed with great insights into the immersive content space, which you can download and listen here.
News Analysis
Amazon Plans New Ad-Supported Video Service Developed By IMDb [link]
In an interesting move to further entrench itself in the original content space, Amazon is reportedly planning to launch a new video app called Free Dive for the estimated 48 million people who use its Fire TV streaming video devices. Judging by the existing ad-supported content on IMDb today, it would seem like this video service will be focused on short-form interstitial content. However, the report claims that Amazon is in talks with major studios to license older TV shows, which suggests this will be similar to what Roku offers with its Roku Channel.
More importantly, this ad-supported content service will further expand Amazon’s ambition in conquering the video advertising market. The company ran ads on NFL games on Prime Video and recently expanded video ads on its esports streaming site Twitch. Amazon’s ad business is growing at a rapid rate of 132% to $2.2 billion in Q2 2018, and this move will no doubt help Amazon further expand its video ad inventory and provide a new channel for brands to reach online audiences.
Related: Vizio Integrates Pluto TV with new ad-supported WatchFree service [link]; Amazon talks with at least two Hollywood studios about co-financing movies [link]; Facebook’s Watch service rolls out worldwide [link]
Toyota Investing $500 Million In Uber For Developing Driverless Cars [link]
As part of a strategic partnership, Toyota and Uber will collaborate on driverless vehicles with plans to launch a pilot program in 2021. This partnership is an expansion of Toyota’s existing relationship with Uber. The carmaker announced at CES in January that it is working with Uber, among other partners including Didi and Amazon, to develop an electric autonomous shuttle that can be used to deliver people or packages. Following the fatal accident its vehicle caused in May, Uber has switched to a slow and steady strategy when it comes to autonomous driving technologies, which is reflected in the 2021 timeline for its pilot program. This week, a new report claims Waymo’s self-driving cars, presumed to be the industry leader, are causing frustration among locals and aren’t as capable as they appear, therefore raising doubts about if self-driving cars are really ready for on-road testing.
Related: Waymo established a Shanghai-based subsidiary to explore autonomous driving and parts design [link]; Volkswagen is developing a new operating system that will support autonomous driving features and debut in VW-branded EVs in 2020 [link]; Uber is considering five more markets for the launch of its Uber Air flying taxi service [link]
Google Is Adding A Google Assistant Feed To Its Wear OS Smartwatch Interface [link]
Google finally update Wear OS with a new UI that better integrates its voice assistant into Android wearable products. This integration also promises faster access to Google Fit and more information-rich notifications through simple swipes, making it easier for users to access their notifications, daily schedules, and fitness data. Overall, this is a much-needed cleanup and refinement for Wear OS, but it is not enough for Google to challenge Apple Watch’s dominance on the smartwatch market. Siri is already deeply integrated into watchOS, and now with the introduction of Siri Shortcuts, Apple is once again ahead of its Android competitors in terms of integrating digital assistants into the wearable experience.
Related: Bose challenges Sonos with new Alexa-powered smart speaker and soundbars [link]; Bang & Olufsen to ship high-end smart speaker with Google Assistant this fall [link]; Frito-Lay ties Alexa skill to customizable back-to-school packaging [link]
Spotify Adds Showtime To Its $5-a-month Hulu Bundle For College Students [link]
This serves as the latest example of content companies creating subscription bundles to appeal to consumers looking for a good deal. As we explained in our in-depth analysis of the rising “super bundle” phenomenon, facing tech giants like Apple and Amazon, it makes sense for established independents like Spotify, Roku, and Sonos to band together to form a super bundle of their own. Integration may be a challenge in this case, especially when competing with Apple, so the sooner they start working together, the better. This new addition to the existing Spotify-Hulu bundle is an encouraging step in the right direction.
Related: NickSplat streaming channel launches, includes CatDog, Doug, All That and more [link]; Disney Play’ is the company’s Netflix competitor [link]; Spotify launches its first branded podcast in partnership with New Amsterdam vodka [link]
Tech Companies Are Lobbying For A Federal Privacy Law [link]
This new law, if passed, would overrule the newly signed California law, said to be one of the toughest data privacy laws in the country right now, and give the tech giants wide leeway over how personal information is handled. Regardless of whether this lobbying campaign will be successful, it does not really challenge the dominant thinking of privacy as something valuable to be protected and regulated.
This is why all current regulations about online privacy are flawed, because they view privacy as a thing that needs protection, rather than what they really are, which is part of a trade-off for benefits. In the digital age, data is a crucial part of the value exchange equation and the oil powering the online economy. Instead of locking up data and cut off consumer access in the name of privacy. Law-makers and regulators should focus on ensuring the transparency and fairness of such data-value exchange and holding the companies collecting data responsible.
Related: What you need to know about California’s new data privacy law [link]; Google and Facebook are easy scapegoats, but companies have been collecting, selling, and reusing your personal data for decades [link]
Stats To Know:
- McDonald’s is seeing a same-store sales lift from its mobile app, said an analyst at Jefferies in a report cited by CNBC. He estimated the burger chain’s same-store sales will rise 3% during the current quarter from a year earlier. The report cited SimilarWeb data that showed average daily usage of McDonald’s Android app rose by 20% to 40% in recent months.
- US gamers spent $19.5 billion on content in the first half of the year, according to new data from The NPD Group, up 40% over the same period last year; all sectors saw growth. Gamers spent $1.7 billion on hardware, up 21% over the same period last year.
- After a shaky start, wearables such as smartwatches, fitness trackers, and other connected devices have gained traction in healthcare. US consumer use of wearables for health purposes jumped from 9% in 2014 to 33% in 2018, according to Accenture (paywall).
