Netflix Is the Conspirator Against AT&T And Verizon

Verizon and Sprint are victims of Netflix controversy.

As per an announcement made recently, Netflix Inc. accepted the fact that it was limiting the speeds for video streaming for certain wireless network carriers like Verizon Communications Inc. and AT&T Inc. this was being done so that the data plans could get accommodated. The announcement surfaced almost a week after both the network carriers were accused of manipulating the video streaming speeds.

Netflix came upfront to accept that they were decreasing the video quality for Verizon users and other popular telecom services like AT&T for a time span of five years. As per the streaming giant, the streaming bandwidth for these carriers is limited to 600KB per second, which is extremely slow in contrast to other modern wireless connections.

As per Netflix, if one spends almost two hours to stream High Definition (HD) content on VZ or AT&T then almost 6 gigabytes of data is consumed. This the maximum data allowances for a majority of the consumers. Other wireless network carriers such as Sprint, and T-Mobile have “friendlier customer policy” that slows on the network speed for all those who cross the data caps barrier. On the other hand, Verizon and AT&T consumers have to pay extra for exceeding the data limit, thus the consumer are not really discouraged to use the video service.

The issue got traction last week when the CEO of T-Mobile, Mr. John J. Legere stated that the consumers of Verizon and AT&T get low quality video streaming when using Netflix. However, both network carriers denied the allegations.

When they learnt that Netflix throttles the data, the senior executive vice president of legislative affairs and external at AT&T, Mr. Jim Cicconi stated, “We’re outraged to learn that Netflix is apparently throttling video for their AT&T customers without their knowledge or consent.” A spokesman from Verizon said: “Verizon delivers video content at the resolution provided by the host service, whether that’s Netflix or any other provider.”

The streaming giant also made an announcement that it will launch a data saver feature for smartphone users so that they can monitor the data usage when streaming. This will allow them to create barriers on their own while consuming data. The service will also allow users to alter the resolution in compliance to their data plans. The service is likely to debut in May, 2016.

The telecommunication fraternity is becoming highly competitive since all carriers are striving to increase market share. Verizon and AT&T consumers together are almost three quarter of the wireless subscriptions in the country. Both of the services encounter traffic congestion due to the high number of users.

The consumers on smartphones are used to of HD streaming on the go, thus AT&T and Verizon need to hunt down some alternative where the quality is not compromised and consumers also get what they expect in terms of quality.

Verizon itself is coming up with video streaming platform in recent times thus if the strain causes the masses to switch then it will affect its subscriptions in the long run.

Alibaba To Introduce Flea Markets In China

Alibaba is investing $15.4 million to introduce flea market in over 100 cities of China.

Alibaba Group Holding is the biggest and largest online retailer in the world. The company was already one of the largest but considering the performance it just put in the current fiscal year, it is set to surpass US Wal-Mart Stores as the biggest retailer in the world.

The Chinese tech giant, however, is now planning to enter a market where it has not already set its foot before. According to the company’s owned South China Morning Post, it will invest almost $15.4 million (100 million Yuan) in order to develop a digital flea market in China this year.

Alibaba Group previously expressed its wish to open a physical store soon that would further help the business. Now the idea of developing a flea market would not surprise many people but it is surely not its strength.

In June 2014, Alibaba came up with a mobile app, which offered used goods and items to the customers. The app was called Xianyu and within a short span of time, it became one of the most used mobile applications in the country. A news website yicai.com reported that Xianyu has almost 100 million registered users.

According to a report, nearly 170 million used-goods have been traded through the mobile app since then. The $15.4 million (100 million Yuan) investment will help Alibaba in introducing flea markets in 100 urban cities of China. This will allow the users of the smartphone app to trade purchase, sell, and trade second hand products physically in local areas.

CBNData – a reputable Shanghai-based data analysis firm – said that with this move, the flea market trading or used-good trade market could easily reach the 400 billion Yuan mark by the end of this year in China.

Alibaba suggests that it will provide convenience for the users. Users of Xianyu app can easily manage their stores in flea market through the mobile app. They can take and upload images of their products, put an impressive caption on the images, and can add promotional voice notes in order to increase the trades.

The company said, “Both buyers and sellers can get a sense of belonging, and recognize and assess each other, which makes the app more akin to a social network than a shopping website.”

The transactions of buyers and sellers will be supported by Alibaba’s online payment service Alipay, which also works like a money remittance service.

Amazon And Flipkart To Compete In The Indian Market

Amazon is expanding its reach in the Indian market to directly compete against the local players.

 Two of the biggest online retailers in the retail industry are planning to expand their global footprints in India. India is one of the rising nations which is adopting the notion of online shopping. Alibaba Group Holding and Amazon Inc. are currently exploring options to expand their reach in the Indian e-commerce market and both online retailers have different approaches to do it. Amazon launched its online marketplace platform for the Indian online shoppers in 2013 and since then it has had a positive impact in the market.

Alibaba is making deals and acquisitions to improve its market position in the region. It already holds stake in Snapdeal and PayTM. On the other hand, Amazon is improving the presence of its e-commerce platform in the industry. The company directly competes with the local established businesses such as Flipkart and Snapdeal and internet rival Alibaba. India has a fairly nascent e-commerce market the online retailers will go head to head for the big market share. After United States and China, there is no doubt in the fact that the Indians are looking to make the nation the next big e-commerce field for all local and international companies.

Sources suggest that the valuations of the Indian e-commerce industry might have been ahead of its present reality. Analysts at Morgan Stanley wrote down on a fund regarding its stake in Flipkart which is of more than a quarter. it is believed that it is a massive $25 billion market which is growing at a fast pace and grows at an impressive rate of 40 percent annually irrespective of the fact that it is still considered ‘virgin’ territory.

According to the owner of an Indian start up Quickr, which is backed by EBay, said “We are trying to make it as easy as buying something new. Instead of the Western ‘we’ll connect you and you go figure the rest’ approach to classifieds, we Indian-ized it.”

The e-commerce market is a mutual attraction for the local players as well as the likes of Amazon. This is because that the China and United States are currently staked out by numerous operators. The online retailer is determined to expand its business and services in the region. It realizes the significance of a market which is also the highest population of the world. And the progress at which the company is developing, it is a matter of time that it offers shopping services to most countries in the world.

McDonald And Other International Brands Struggle In India

The fast food chain should come up with reinventions to have firm hold of the region.

Growth requires innovative steps and this is what McDonald Corp. had to do this year in India. The Golden Arches had to change its decades old recipe of the signature two-patty chicken burger. The change was inevitable in light of the company’s battle against the slumping sales.

Back in January, the Oakbrook, Illinois based fast food titan revamped the Indian Big Mac which is now dubbed as MaharajaMac, the burger had been the best sellers for as long as 20 years. The recipe change resulted in thicker chicken patties along with the addition of jalapenos and a habanero sauce. Moreover, the first ever meatless Big Mac also made a debut for the vegetarian consumers of India whose patties are made using cheese and corns.

The Vice Chairman of Westlife Development Ltd. which has the charge to run the Golden Arches outlets in southern and western India, Amit Jatia expressed, “Everyone needs to reinvent to stay relevant.” He also added that even though to perform outclass in the market is tough however initiatives can still be taken to go ahead.

What once was the hot spot for the fast food chains has now hit a wall at a lot of international established brands including KFC, McDonald’s, and Pizza Hut. This has brought down the hopes the brands have that the region will offset the declining growth in China and the West.

Although, generally, the market for eating out is expected to spread out however the rate of growth is at a snail’s pace. Moreover, once the pioneer in India, the international chains are not hoping for significance expansion. The London based market research firm, Euromonitor International had projected the India’s food-service industry sales to be around $116 billion –US equivalent of Indian 8 trillion rupees. In comparison to last year, this estimate has gone up by 11%. It is noteworthy, that in 2008, the industry grew by 16%.

The fast food giant moved in India around 15 years ago and now they are struggling to bring appropriate changes which can avert the possibility of the demand implosion due to which companies like Yum Brands Inc. which controls the popular brands like KFC, Taco Bell, and Pizza Hut to reconsider the China’s investment.

Major initiative has to be taken by the market leaders to bring the companies on the expansion trail. Mr. Jatia, therefore, has decided to double the store count of the McDonald’s in the upcoming three to five years reaching at the figure of around 400. Similarly, Domino’s looks forward to make around 150 new stores every year. Whereas Pizza Hut parent Yum envisions taking the store count to two thousand by the year 2020.

The major obstacles on the way of the companies’ growth are the poverty level of India as hundreds of millions of Indians are compelled to live below the international poverty line of $1.90 per day due to which the consumption of fast food is luxurious for an ample amount of majority.

One of the representatives of Pizza Hut said: “These are difficult times. People with staying power will withstand the short-term pressures. The ones who don’t will have to shut shop.”

Yahoo Inc. Downgraded By Citi Research

Due to consecutive poor results in recent quarters, Citi Research has downgraded Yahoo to neutral.

Yahoo Inc. is going through a bad patch recently. The company failed to meet the analysts’ expectations as well as could not turn around its fate. The business was significantly declining and the investors demanded to sell the core internet business as soon as possible. One of the activist investor, Starboard Value, urged to take action immediately or else it will launch a proxy war. For that matter, the firm launched an auction process for the sale of its business but no one exactly knows what is happening behind the scenes.

Due to poor performances in the past quarters and failed to over turn its business, Citi Research has downgraded US search engine giant Yahoo to neutral as the options to either sale or spin off its core internet and advertising business is reflected in its share price. The stock is going down day by day and the investors want the board of directors to take appropriate action before it is all over. Mark May, who is a reputable analyst, recently raised Yahoo’s price target from $32 to $37 and gave 60 percent weightage in favor of a sale of its core business.

On one hand, the investors are urging to sale out the business whereas the board of directors along with the Yahoo CEO Marissa Mayer are exploring additional strategic alternatives to make things work out. According to the CEO, she believes that with the new restructuring plan and the news targets, Yahoo can revive its business and can achieve its goal.

Yahoo is also unsure about its Asian assets i.e. stakes in Yahoo Japan and Alibaba Group Holding. According to the analyst, there are higher chances for a spin off of Yahoo’s core internet business and its stakes in Yahoo Japan which is 30 percent. This is said to be the most latest plan which the management came up with to proceed with. Furthermore, Mark May said that the outlook of the stock may prove too conservative if Alibaba shares trade higher as Yahoo has nearly $30 billion stake in the Chinese e-commerce giant.

Mark May stated, “At current levels for both Yahoo! shares and Alibaba shares (which comprise the majority of Yahoo!’s underlying value) we believe investors are paying a fair price for the potential value creation from a sale or spin of the core business. Absent a large change in the price of Alibaba stock, we see little opportunity for significant upside or downside to shares at the current price.”

Ford Motors Delivers Record Breaking Profits

Ford Motors CEO has delivered top notch performance.

Ford Motor has decided to pay homage to its Chief Executive Officer, Mr. Mark Fields with a hefty paycheck for all his efforts. The company thinks that they need to compensate him since they delivered skyrocketing profits this annum, thus the compensation for the executive has bolstered in contrast to the past year by 17%.

Mr. Fields got an amount of $17.3 million, after the company made amendments to the pension value. It has reported great profits since the sales of sport utility vehicles have increased during the annum.

As per the SEC filing, the executive was paid almost $1.75 million as salary, $13.36 million as a stock option in long term along with other incentives based on performance equity. Along with that, he banged $3.46 million as bonus will sums the total amount to $18.6 million that encompasses the pensions. So when the pension values get adjusted, they are likely to get volatile by adding the other expenditures like the traveling using the corporate aircraft with a 16.89% on a year over year basis from $14.8 million to $17.1 million. The company on a whole has spent $240,729 on his personal use for the corporate aircraft.

The values of pension vary on a year to year basis in terms of difference in the mortality tables as well as discount rates that are issued by government. The automotive giant at this point of time has no control on it at all. It is not the compensation paid directly to the executives. However, it is an accounting amount that is cur from the overall remuneration package.

An executive belonging to Ford, Mr. Fields took charge as the Chief Executive Officer and the company’s president in FY14. He is appreciated for offering operational excellence along with improvements to the car line ups. He is appreciated for looking and taking care of the roll out of the enhanced aluminum body of the F-150 pick- the cash making commodity for Fords last year. In the North American region, the company has embraced significant success due to its mind blowing performance.

Back in time, Mr. Fields came up with an enhanced contract that spanned for four years that asked the trade unions to join forces with the United Auto Workers. This was his way to deal with the staggering fuel prices. He also came with more SUVs to serve the purpose that comprised of more top and bottom line figures.

It needs to be noted here that certain investors and analysts are skeptical of the fact that the good days of the company might end soon. The auto industry in the regions is embracing a lot of pressure. Mr. Fields is also aware of the concern, when an analyst conference took place in January he mentioned that the operating profit margins of Ford in North America might go down this year since the increasing costs cause a dent on the profits.

North America is said to be the largest market for Fords thus any drop in that can cause subsequent damage to the company.

Apple Aims To Launch Smaller Screen Phones For Users

Apple is planning to launch a smaller iPhone in order to boost its sales.

Apple is scheduled to launch its novel addition of the small sized iPhone at an event arranged in the headquarters of the company in Cupertino, California. The new version of the iPhone is rumored to be dubbed as “iPhone SE” and according to the sources privy to matter, it has upgraded processor, capability of utilizing Apple Pay, and improved camera.

It is highly expected that Apple will make the most of the event and will siege the opportunity to discuss about the highly accelerated legal battle with the U.S. Department of Justice on the issue of unlocking one of the shooters involved in San Bernardino attacks. The showdown between the lawyers for U.S. DoJ and Apple will happen on Tuesday. The hearing organized before a federal magistrate will hear the statements of both parties about striking a coherent balance between the privacy and security necessary in the current era of smartphones.

The idea of the smaller iPhone was cooked when the company’s blockbuster product, iPhone, recorded a slow growth in its sales. Its fiscal first quarter, which ended in December, showed a mere 0.4% increase in the sale of the company’s core product. This marked the slowest rate of growth for the company since the debut of the prestigious iPhones in 2007. Analysts have first ever projected the decline in the sales of the phone in the current quarter.

In the recent years, the iPhone maker had cultivated colossal profits out of its record sales of larger display smartphones. The company provided the best range of the screens for the consumers who want to watch videos, surf the web, or play games on their smartphones. In short, the phone was the best option to be used as “an entertainment device” too. Now, the tech company is looking forward to get the hold of the consumers who prefer smaller screens for various reasons.

According to the survey carried out in December by Piper Jaffray analyst, Gene Munster, 20% of 1,077 respondents of the survey expressed that they would prefer 4-inch phones. Amit Daryanani, analyst at RBC Capital Markets, speculated that the Silicon Valley business could annually sell 10 to 15 million units of the newly introduced 4-inch iPhone.

Although the bigger iPhones with large display never fails to attract new customers, according to Tim Cook’s statement given to the analysts in January, 60% of the smartphone users who had iPhone 18 months before the launch of bigger phones haven’t substituted their smaller phones with the new larger display. This clearly implies that the opportunity for a smaller phone is wide and bright.

The company will have the revenue flowing when the faithful customers will use the tech giant’s apps and services such as Apple Pay – Apple’s mobile-payment service.

Twitter App Surfaces On Microsoft Windows 10

Twitter debuts its app on Microsoft Window 10 platform.

Twitter Inc. has come up with a mobile application that is devoted to the Microsoft Corporation’s Windows 10 ecosystem. Initially, the company started to render support for tablets and desktops to its global Windows app.

The tech giant decided to surface the application on Window Store right after Angela Lam, the product designer for Twitter along with her team critically analyzed parts of the social media platform to bring the app on mobile.

Microsoft users have the advantage of making use of edit, shoot, Moments and Tweet videos via their cameras, add intriguing captions, check the latest things trending, share their tweets and go through profiles without the need of a desktop by merely signing using their smartphones. As per Ms. Lam, the application has been designed in a manner that enables it to adapt to different devices by fitting to the screens.

The company is making use of the Windows Phone dark theme. The reason behind this selection is that it is extremely popular amongst the Twitter clientele. To make use of this theme on their profile, the users will have to make their selection on the personalization menu so that the theme can fit precisely on the device. It is assumed that the modified user interface is an effort by the company to provide users with an aesthetically appealing experience while using their smartphones.

According to several analysts, by offering the Twitter users with an application devoted to the Windows 10 platforms, the company can pump up its game while competing with other social media application due to better accessibility.

The only obstacle with this move is that Windows 10 is only available on the Lumia 950 and Lumia 950 XL gadgets which can become the core reason behind its widespread popularity. When both the companies modify their webpages pertaining to the update, Twitter will also generate hashtag #twitterforwindows will enable the users to talk to representatives at Twitter and register their queries.

This initiative might just be a small step by Twitter to lure the limited audience of Windows 10. However, it is a massive stride for Microsoft in general. The software giant has been struggling with encouraging the masses to switch to Windows 10 since their app ecosystem is not even close to what Apple Inc. and Alphabet Inc. offer.

Thus, this might not be a major stride but it poses some optimism for the company which highlights that big names in the fraternity might just want to take Windows 10 seriously as well. If the company can continue to get more big names onboard with quality smartphones then the situation might just change for them.

For now, MSFT needs to push its effort and improve the offerings of Windows 10 to embrace the change it has desired of since a long time. On the other hand, the company also needs to think about how to engage the masses and provide them incentives that force them to switch to Windows.

Flipkart Declines Speculation Of Negotiation With Alibaba

Flipkart has declined the rumors that it is in talks with Alibaba or any other investor over stake sale.

The officials at Flipkart have come forward to declare that the biggest Indian e-commerce startup is not in negotiations with the Chinese e-commerce giant, Alibaba Group Holding, or any other investor for a possible stake sale. There were speculations that started at the beginning of this year when Alibaba began to expand its global footprints in the international regions, such as India. The online retailer currently holds stake in two e-commerce startups in the region, which include Snapdeal and PayTM.

Alibaba Group already made it clear before it had plans to invest in Flipkart that it will only do if the startup lowers its valuation to decrease share price. Various sources suggested that both parties initiated the talks for a stake sale earlier this year. According to the statement of Flipkart, it might be possible that the negotiations have ended due to the disagreements on the valuation and price. The Chinese e-commerce leader wanted to have a mutual agreement with Flipkart over this but it seems like the Indian startup is not willing to lower the valuation.

The spokesperson of Alibaba was approached for a comment but he refused to provide any comment on such market speculation. On the other hand, Flipkart spokesperson said in a statement, “We are not in talks with anyone to raise funds. We are well capitalized for the long term. We believe in raising funds when they are available and always at the right valuation.”

According to sources, Alibaba Group might have lost interest in investing in Flipkart due to disagreements over valuation terms. It wanted to buy stakes in the firm at a price of last year’s valuation. Morgan Stanley, a US based funding house, is a well-known investor in the Indian company. Morgan Stanley recently decreased Flipkart valuation from $15 billion to $11 billion as the e-commerce startup failed to meet the earnings and revenues expectations for last year.

Flipkart last received a massive funding of $700 million from Qatar Investment Authority, Tiger Global Management, and other investors last ear. It was in talks with Alibaba and other reputed investors since late last year to raise up to $1 billion in funding.

The Chinese e-commerce leader is known in India for investing in Indian company’s rivals, Snapdeal and PayTM. It is making deals and acquisitions in the area in order to increase its India exposure and improve its international market presence. Alibaba said that it will not expand its operations or business in the foreign regions until it makes name internationally.

Twitter Application Finally Available For Windows 10 Mobiles

The wait ends for users who own mobile phones with windows 10 installed as Twitter has finally launched its application for these users.

Twitter Incorporation has finally launched its application for windows 10 mobile phones and has been updated, which means that it will not only be capable of running on desktops but even tablets and phones. The micro blogging company application can be downloaded from the windows store and users can experience and analyze it.

The social media network’s recently launched application for windows 10 has various features including GIFs, Moments and much more. All the latest features that were launched by the company are now fully functional and compatible on windows 10; it has managed to bring improvements to its desktop website.

For desktop users, the micro blogging site has brought a dark theme that they can choose if they wish to, while on the mobile application, the theme will be dependent on the setting the users has chosen on the mobile phone.  The application is now giving a feeling of completion by making itself into a windows 10 universal application. The updated version has the option of camera support, and users can even start group chats and send direct messages through the social media platform now.

Twitter Inc. updates application has compatibility with UWP, which indicates that the display is going to diverse and change sizes according to whatever is suitable for the specific screen.  Thanks to the camera support, users will now be able to take pictures and videos directly, edit and tweet them on their accounts.  The moment feature of the company can be viewed on full screen on mobile phones, while on tablet and computers, it will be shown in a grid-like pattern, from where users will be able to choose stories they want to view.

The social media advertising company’s updates application is already installed in some the latest shipped devices including Xiaomi Mi4, Lumia 950 XL, 550 and many others. For the ones that are already with the users, they can go to the windows store and download the application. For large screen, the grid layout of Twitter is better to user via a mouse but for smaller screen, the touch options are ideal.

In the future, Microsoft and the social media platform can be expected to make further additions and enhancements  to the windows 10 version of the application, it can be downloaded without any charges from the store of the devices. This launch might just get the company more users, thanks to availability it is offering now, which was not the case before, meaning more users might be gained who own windows 10 devices.  This is a good call for Twitter, and even the features it has brought including the theme changing option.

Facebook Is Growing In Asia Amid Free Basics Ban in India

Facebook continues to grow in Asia amid ban on Free Basics in India.

Facebook Inc. has been successful in increasing it user base in Asia at a relatively faster pace in contrast to other regions across the globe as per the company’s executive. This indicates that the recent controversy that took place in India regarding the company’s Free Basics program is not hampering the company’s image and they are successful in expanding their services in the region.

The Vice President of Facebook, Dan Neary for the Asia Pacific region told the Wall Street Journal in a recent interview that some of the 540 million of the social media giant’s 1.59 billion monthly active users are in the Asian region as per a consensus done in December. This has increased from 449 million per annum.

The company is adding users in Asia at a 20% rate annually in contrast to the global rate of 14% he stated.

“The potential is greater in Asia-Pacific than it is in any other region because we’ve got two thirds of the world population, and it’s all mobile,” Mr. Neary explained.

Back in February less than two weeks ago when the company reported more than $1 billion in terms of its quarterly revenues for the first time in its history, the company was thrown a ruling by the telecommunication’s regulators in India where its Free Basics service was banned in region. The idea behind this service was to bring the masses online.

This service is being consumed by several countries across the globe which enables the users to browse through certain websites without the need of paying for mobile data. The data is then subsidized by the wireless network carriers in India like Reliance Communications Ltd. However, the regulators are of the view that the initiative disrupts the paradigms of net neutrality which demands all traffic on the Internet to be treated equally.

Mark Zuckerberg, the Chief Executive Officer of the company mentioned in October that India has more than 130 million Facebook users. This is said to be the second largest population after the United States . on the other hand, Twitter boast of 142 million users in India.

“It was disappointing that Free Basics didn’t get the ruling that we had hoped,” Mr. Neary mentioned.  However, the company will continue its efforts to offer Internet access across the globe.

According to the social media behemoth, as of this month, they have 3 million active advertisers across the globe. This is a 50% annual increase where South east Asia is the region were advertisers are growing at the fastest pace.

However, the company might find it difficult to increase monetization in Asia whatsoever. During the fourth trimester, FB claimed that it made earning of $13.4 on an average per individual in Canada and United States however in Asia Pacific the average revenue per person was $1.59.

Mr. Neary stated that the revenue is increasing in Asia at a rate of 25% since enterprises and brands have started to understand the power of Facebook. The company is looking at long term goal where Asia is a lucrative market to tap on.