Streamers New Challenge
Internet Explorer Goes Bye
Ford Can't Afford the Mach-E
A new study claims that 8-10% of ads on streaming platforms play even after people turn their televisions off, according to GroupM and iSpot. That results in about $1 billion a year of unseen ads.
The Point: Talk about bad timing. If true, this will likely drive down ad rates across streaming platforms just as the most significant players like Netflix turn to ad-based revenue models. Netflix is counting on ads to revive its business. If they can't charge what they expected, they'll either have to sell more ads to make up for lower rates or work with hardware companies to find a fix.
After 26 years, the company is retiring the browser.
The Point: At one point, 95% of all web traffic went through Internet Explorer. Of course, Microsoft attracted such a huge user base because they gave IE away for free to Windows users at a time when you still had to pay for browsers. And while Microsoft came to dominate the browser market, the decision to include IE in Windows resulted in a long antitrust investigation. Only a tiny fraction of Microsoft's business is tied to browser-related revenue. So this decision is unlikely to have any noticeable impact on the company's financials.
Higher battery costs mean that Ford's Mach-E Mustang is no longer profitable.
The Point: On the positive side, Ford CFO John Lawler says consumer demand remains strong. But how long can the company continue to make an unprofitable product? Lawler's statement comes a day after Ford stopped deliveries of the Mach-E due to potential safety defects. Ford's got a lot riding on electric vehicles. Last year, it invested $5.8 billion in its BlueOval SK Battery Park. It planned to spend $30 billion by 2025 on EVs. Now those plans look like they might need to be reevaluated.
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