Tag Archives: request

Verizon: Congress Needs To Act In Apple Privacy, Security Battle

Congress may need to pass legislation  resolving the government’s dispute with Apple ( AAPL ) and other high-tech companies over smartphone encryption, national security and privacy, a Verizon Communications ( VZ ) executive VP said at a Jefferies financial conference on Wednesday. Apple has been battling the FBI over unlocking an encrypted iPhone used by by one of the shooters in a Dec. 2 attack in San Bernardino, Calif., that left 14 people dead. Apple has been fighting a federal court order to create software to hack into the iPhone. Facebook ( FB ) and other high-tech companies have sided with Apple. Asked about the controversy at a Jefferies media and communications conference, Verizon Wireless executive VP of wireless operations David Small said: “It’s a tough issue. Verizon has equal opinions and strength around customer privacy as well as safeguarding public safety.” “The Apple case is a little unique. This is an issue where you see a lot of friction at a very high level and in that regard generally you need some sort of Congressional action to resolve some of those frictions.” AT&T ( T ) chief executive Randall Stephenson in a recent interview also said Congress should determine U.S. policies regarding encryption rather than tech companies. Stephenson commented before the court ruling vs. Apple. Apple will reportedly argue in a court appeal that its software should be protected under the First Amendment as free speech. Small, meanwhile, said it’s unclear whether there will be a stronger upgrade cycle among Verizon wireless subscribers to new iPhones in late 2016. Upgrades to the iPhone 6S series last year disappointed Apple investors. Apple is expected to release the iPhone 7 in September. “I can’t comment on exactly what Apple is planning to launch,” Small said. “This is an even year (2016) so I would expect a more significant form factor.”

Netflix Growth Potential Underestimated, Analyst Says

Netflix ( NFLX ) stock has been beaten down by concerns of rising costs and competition, but 2016 will be the year the streaming video service proves its global business model, Pacific Crest Securities analyst Andy Hargreaves said in a report Tuesday. “Netflix’s seamless global distribution is a structural competitive advantage that is likely to provide efficiency advantages that compound over time,” Hargreaves said. “This should drive share gains and profit growth in excess of current expectations.” He rates Netflix stock as overweight with a price target of 140. Netflix’s all-time high is 133.27, reached on Dec. 7. Netflix was down more than 1% to near 88 in morning trading on the stock market today . Hargreaves expects Netflix to add 21.5 million global subscribers in 2016, up from 17.4 million a year ago and ahead of consensus expectations for 19.1 million. Netflix ended 2015 with 74.76 million streaming subscribers worldwide. Netflix could hit 195 million subscribers worldwide by 2024, he said. “2016 should show the advantages of Netflix’s global business model,” Hargreaves said. “Netflix’s business model is based on centralized costs with limited variable cost per geography. . . . Global distribution provides a data feedback loop that should allow Netflix to invest in content, marketing and product development more efficiently than key competitors.” Hargreaves estimates that Netflix will add 20.5 million new subscribers in 2017, vs. consensus expectations for 19 million. Netflix competes with Amazon.com ( AMZN ) and Hulu, among others. RELATED:  Netflix Stock Downgraded As Risks And Spending Increase

Facebook Hits Milestone With Advertisers On Instagram

Facebook ( FB ) revealed Wednesday that it has more than 200,000 advertisers on Instagram, its video- and photo-sharing site, which began testing ads three years ago. Analysts have kept a close watch on Instagram as a key revenue growth leg for the social media leader, with estimates that revenue from the site could hit $1 billion this year, or about 10% of Facebook’s total. Facebook has been cautious but methodical in rolling out ads on Instagram, as the company says its priority is user experience over revenue. But Facebook has also continued to work with large advertisers and ad agencies. In September, Facebook announced it was boosting efforts to cash in on Instagram with an aggressive expansion of advertising and better analytics and measurement guidelines. It only began introducing video ads on Instagram in Q3 2015. Instagram now has more than 400 million users, up from 300 million last December. Facebook paid about $1 billion to acquire Instagram in 2012. Facebook has about 2.5 million advertisers overall, of which 75% are outside the U.S. Early this month, Facebook announced that it had  doubled the length of video ads on Instagram to 60 seconds. Facebook derives more than 96% of total revenue from advertising, with video ads deriving a premium price. Facebook competes with Apple ( AAPL ), Alphabet ( GOOGL ), Microsoft ( MSFT ), Twitter ( TWTR ) and others to attract more advertisers. Facebook is also expected to introduce ads on its messaging platforms, WhatsApp and Messenger, down the road. Facebook CEO Mark Zuckerberg, in the company’s Q4 earnings call late last month, suggested that ads on WhatsApp and Facebook Messenger, which now has 800 million users, are in the works . Image provided by Shutterstock .