Top Stories

  • Walt Disney Co. reported flat revenue of $15.3 billion in its fiscal first quarter, with sales at its broadcasting, cable and parks businesses increasing and film revenues decreasing. Disney’s direct-to-consumer revenue fell 1 percent to $918 million and segment operating losses rose from $42 million to $136 million, due in part to the higher launch costs of ESPN+, which more than doubled its subscriber base in six months to 2 million. (Variety)
  • New advertising technology helped Snap Inc. beat analyst expectations in its fourth-quarter earnings as it reported fourth-quarter revenue of $390 million and a flat daily active user total of 186 million. Snap said its Collection Ads, which allow brands to display four products in one Snap, drove over twice the return on ad spending compared to other formats. (The Street)
  • Angela Ahrendts, Apple Inc.’s head of retail and online stores, said she is leaving in April after five years with the tech giant for “new personal and professional pursuits.” Deirdre O’Brien, Apple’s current vice president of human resources, will replace Ahrendts in an expanded role as the senior vice president of “retail and people.” (CNN)

Chart Review

Events Calendar (All Times Local)

02/06/2019
Challenger Brands
Brandweek
LocalU Advanced Santa Monica 8:00 am
02/07/2019
Challenger Brands
Brandweek
Programmatic World Forum 8:50 am
House Energy and Commerce subcommittee hearing on “Preserving an Open Internet for Consumers, Small Businesses and Free Speech” 11:00 am
02/10/2019
IAB’s Annual Leadership Meeting 2019
02/11/2019
Digital Summit: Phoenix
IAB’s Annual Leadership Meeting 2019
02/12/2019
Digital Summit: Phoenix
IAB’s Annual Leadership Meeting 2019
View full calendar

A new interactive report reveals who Americans are pulling for

Morning Consult surveyed over 2,000 consumers, asking them to listen to each nominated song, nominated album or artist’s most popular song before voting. See what listeners say 

Advertising

Ad-Industry Analyst Brian Wieser to Join WPP’s GroupM
Alexandra Bruell, The Wall Street Journal

Brian Wieser, a high-profile analyst of the marketing and media industries, is joining WPP PLC’s media-agency conglomerate GroupM as global president of business intelligence.

Gun Safety Devices Get Caught in Online Advertising Bans
Zusha Elinson, The Wall Street Journal

As more Americans keep loaded guns in their homes, efforts to sell them new kinds of safety locks are getting stuck by policies intended to block ads for firearms online.

Harley-Davidson Hires Droga5 to Help Redefine Its Iconic Brand
Patrick Coffee, Adweek

America’s most historic motorcycle manufacturer has named a new agency to help expand its appeal to more riders around the world.

Media and Entertainment

BBC and Discovery to pool wildlife programmes in streaming deal
Matthew Garrahan, Financial Times

The BBC and Discovery, the US media group, have struck a deal to pool their vast natural history and wildlife programming libraries in a new global subscription streaming service aimed at viewers from the Netflix generation that have embraced on-demand viewing.

AT&T Becomes NBA Sponsor Starting During All-Stars
Jon Lafayette, Broadcasting & Cable

After acquiring long-time National Basketball Association television rights holder Turner, AT&T has signed a broad, multi-year marketing deal with the league that will tip-off at the NBA All Star Game.

Spotify has bought two podcast startups and it wants to buy more
Peter Kafka, Recode

Spotify is a streaming music company that wants to become a podcast company, too.

Viacom’s Netflix deal highlights content strategy; earnings mixed
Kenneth Li and Akanksha Rana, Reuters

Viacom Inc announced another film production deal with Netflix Inc through its Nickelodeon kids division, fleshing out a strategy to produce more shows and movies for others as streaming video giants battle for viewers.

Facebook to Publishers: We Are Not Here to Save You
Garett Sloane, Ad Age

When Facebook’s Campbell Brown addressed an auditorium full of magazine executives in New York Tuesday, she did not mince words: The social network is not here to save their businesses.

Social Media and Technology

Facebook removes 22 more pages connected to conspiracy theorist Alex Jones and InfoWars
Oliver Darcy, CNN

Facebook on Tuesday removed 22 pages connected to conspiracy theorist Alex Jones and his fringe right-wing website InfoWars.

This Video-Chat App Wants to Be More Like Fortnite, Less Like Facebook
Betsy Morris, The Wall Street Journal

The video-chat app Houseparty has built a core audience among fickle teenagers through a strategy that is pretty much the opposite of its larger social-media rivals, including Facebook Inc.

Reddit is raising a huge round near a $3 billion valuation
Josh Constine, TechCrunch

Reddit  is raising $150 million to $300 million to keep the front page of the Internet running, multiple sources tell TechCrunch.

Electronic Arts Ran Into a Wall in Holiday Quarter
Sarah E. Needleman, The Wall Street Journal

Shares of Electronic Arts Inc. tumbled more than 17% after the videogame maker swung to a profit but reported revenue for the holiday quarter shy of its already reduced forecast.

Even YouTube CEO’s kids said Rewind was ‘cringey’ last year
Joan E. Solsman, CNET

“One record we definitely didn’t set out to break was the most disliked video on the Internet,” YouTube CEO Susan Wojcicki said.

New Outerwear Brands Ride the Instagram Wave
Kati Chitrakorn, The Business of Fashion

From Kassl Editions to Common Leisure, a flurry of emerging labels are challenging mainstay names like Moncler and luxury brands like Gucci in the fast-growing outerwear category.

Meditation App Backed by Ashton Kutcher Valued at $1 Billion
Krista Gmelich, Bloomberg

Calm.com Inc. — which makes an app that guides people through relaxation exercises and encourages users to breathe — has been valued at $1 billion in a funding round led by TPG Growth, the startup said on Wednesday.

PR and Marketing

Delivery Startups Are Using Tips To Fulfill Pay Promises, And Customers Are Mad
Caroline O’Donovan, BuzzFeed News

Instacart customers are quitting the service because the company is using customers’ predelivery tips to fulfill the base pay minimum it guarantees delivery workers.

Facebook to link employee bonuses to progress on social issues
Hannah Murphy, Financial Times

Company sets new criteria after facing criticism for ‘growth-at-all costs’ mentality.

Saks Turns Prime Space Into a Handbag Emporium
Suzanne Kapner, The Wall Street Journal

Flagship store devotes coveted ground floor to luxury satchels, even though category’s growth has slowed.

As DTC brands open storefronts, Shopify expands along with them
Shareen Pathak, Digiday

Walk a block in New York’s Soho neighborhood, and you’ll find a storefront for what was formally known as digital brands.

Opinions, Editorials, Perspectives and Research

Gillette’s ‘We Believe’ ad took a stand. And I’m proud of the conversation it started
Marc Pritchard, CNN

Our team at Gillette sparked an important worldwide conversation with the new “We Believe” ad. The film shows men being role models by stepping in to stop bullying and harassment and demonstrating how to treat people with respect.

Fortnite Is the Future, but Probably Not for the Reasons You Think
Matthew Ball, REDEF

Much has been said about Fortnite’s revenue, users, business model, origin and availability. But these narratives are overhyped. What matters is what these, plus Epic Games, are collectively in the process of building.

Brands No Longer Want Your Loyalty. Now They Want Your Love
Janine Wolf, Bloomberg

For direct-to-consumer companies, a new paradigm was required to win over the “digital native.” Brick-and-mortar retailers should take notice.

Morning Consult