Having transitioned to a cloud-based, recurring-revenue model from a traditional software license offering, Autodesk is able to monitor cloud usage “across the globe and see the positive correlation between increasing usage levels and new business growth in those regions,” said CEO Andrew Anagnost on a Q3 investor call Tuesday. China, South Korea, Japan and most of Europe had cloud usage in the quarter rise above their pre-pandemic levels, he said. “Usage trends in the U.S. and U.K. have not yet returned to pre-COVID levels, while they have stabilized in the U.S.,” and grew sequentially from Q2 in the U.K., he said.
Vehicle connectivity has become “democratized,” said Strategy Analytics Tuesday, with all buyers expecting it in some form. Differentiators are ease-of-use, seamless integration and intuitive functionality, said analyst Richard Robinson, and the challenge is to make the vehicle cabin’s technologies work in harmony and meet expectations.
Video streaming specials kicked into gear this week for Black Friday sales events. Hulu brought back its annual promotion, offering new and eligible returning subscribers its ad-supported plan for $1.99 monthly for one year, savings of $48. AMC+ is trialing on streaming video platforms. Amazon is offering AMC+ with a 30-day free trial, then $8.99 a month. New subscribers on the Roku platform can get AMC+ for $4.99 for three months, redeemable on The Roku Channel Wednesday through Dec. 4, before going up to $8.99 monthly.
The Service Contract Industry Council is trying to make the case that extended warranties on consumer tech devices are an essential buy during this “pandemic-wracked year.” The trade association canvassed 1,200 consumers Nov. 18-19, finding half said they needed to repair or replace a laptop for remote learning during COVID-19, it said Tuesday. Parents with kids 11 and younger “were 40% more likely to admit having a phone dropped in the toilet compared with the average individual,” it said.
Smartphone sales fell at Best Buy in the quarter ended Oct. 31, largely due to the late launch of the 12 series of iPhones, Chief Operating Officer Mike Mohan told investors Tuesday. Demand for higher-capacity 5G phones with larger screens is high, he noted. The replacement cycle for phones “has been forever changed,” he said. Best Buy Q3 comparable sales surged 23% year on year to $11.8 billion, said CEO Corie Barry. Online sales jumped 200% in October, said Barry, while ship-to-home speeds reached their highest level since the pandemic began. Domestic online revenue spiked 174% and to 35% of total domestic revenue, vs. 15.6% of the revenue mix last year, said the company. Barry highlighted strength in computers and home theater. Chief Financial Officer Matt Bilunas tempered expectations for the holiday quarter. He cited the surge in COVID-19 cases during a time of “significant holiday volume.” Shares closed 7% lower at $113.54.
Sixty-one percent of U.S. broadband households subscribed to two or more over-the-top video services in Q3, up from 48% in the year-ago quarter, reported Parks Associates Monday. ViacomCBS is expanding CBS All Access to become Paramount+ early next year (see 2009150003), joining several other OTT video services that hit the market in the past year, trying to take share from the big three: Netflix, Amazon and Hulu. The pandemic stirred up competition at the top of the OTT ecosystem, as viewers spend more time at home, said analyst Steve Nason. The five main challengers are “filling in important content gaps not currently being delivered by the Big 3 and other services,” said Nason.
The biggest TV platform providers, such as Roku, Apple and Amazon, are growing in influence, but their power is checked somewhat by the fragmented TV platform market, nScreenMedia analyst Colin Dixon blogged Sunday. The top 10 platforms have about half the market; the rest is divided among many others. Big content providers are a check, he said, with TV platforms' popularity dependent on having the biggest subscription VOD services.
Though Warner Music Group’s digital revenue increased 15% in fiscal Q4, ended Sept. 30 from the year-earlier quarter, total revenue declined 1%, said CEO Steve Cooper on a Monday investors call. WMG had a 45% revenue decline “in areas of our business that are most aligned with touring and live appearances, and therefore most disrupted by COVID,” he said. The pandemic “reinforced the importance of technology across every aspect of our business, from how we sign talent to how we market music to how we pay royalties,” said Cooper. WMG sees subscription streaming as “just the beginning” of a new “golden age” in music, one “of many avenues for long-term growth,” he said. Music revenue from social media is growing faster than that of subscription streaming, and gaming “is among the fastest-growing sectors of digital media,” he said.
Pivotal Research Group swapped a “sell” rating for a "hold" and raised its target price for Roku stock from $75 to $240 in a Thursday investor note. Analyst Jeffrey Wlodarczak cited comments by Liberty Media Chairman John Malone on the streaming platform’s competitive positioning, the ongoing “dramatic benefit” from COVID-19 and a “much slower than anticipated roll-out in competitive threats,” including the Comcast/Cox Flex product and early discussions of building Comcast’s Xfinity into Walmart TVs (see 2011030059). The pandemic “appears to have accelerated AMZN and ROKU’s lead (and pushed back competitive responses) with the potential for that lead to be sustainable especially as the platforms build global scale,” said the analyst. Wlodarczak raised Roku subscriber forecasts to 113 million active accounts by 2027, from 99 million previously, based on “high likelihood of return of Covid-lockdowns over the winter but also the clear inevitable decline of traditional PayTV.” The “currently mediocre Roku channel has the potential to be significantly strengthened with signing of new distribution deals,” he said, noting that he expects HBO to make such a deal.
Nearly a month after departing SiriusXM CEO Jim Meyer said a long-term contract renewal with Howard Stern was near (see 2010220019), Meyer’s successor said it lacks a pact. “We’re excited to continue working with Howard,” incoming CEO Jennifer Witz told CNBC Friday. “We don’t have anything specific to announce today, but I’m really encouraged and confident that we’ll have something to say soon.” Witz becomes CEO Jan. 1, when Meyer shifts to vice chairman. Stern's contract expires Dec. 31. The day after Meyer spoke about an imminent deal, Stern shot down speculation that an agreement was near.