News

• Spotify Posts Record Quarterly Profit Amid User Growth and Cost-Cutting Measures

  
  
  
  Spotify reported a record quarterly profit slightly ahead of analyst expectations, driving shares up over 14% in premarket trading. The Swedish audio-streaming giant achieved this by reducing costs through layoffs and marketing budget cuts, while also growing its user base through promotions and new investments in podcasts. In Q2 2024, Spotify's paying subscribers rose to 246 million, slightly surpassing expectations, while profit increased 45% to 1.11 billion euros, exceeding the forecast of 1.07 billion euros. Revenue grew 20% to 3.81 billion euros, just below the estimated 3.82 billion euros. Although Spotify missed its target for monthly active users (MAUs), reaching 626 million instead of the projected 631 million, CEO Daniel Ek remains optimistic about future growth. Despite falling short on MAUs, the company is on track for its first profitable year since its launch, buoyed by increased premium subscriptions and strategic cost reductions, including significant layoffs. The end goal is to reach one billion subscribers by 2030, although challenges such as market limitations and economic recovery pose hurdles. The accompanying chart illustrates Spotify's annual net income since 2009.
  
  

  
  

  25/07/2024

• Adidas Apologizes for Bella Hadid Campaign Amid Historical Sensitivity Concerns

  
  
  
  Adidas has issued an apology for featuring model Bella Hadid in its promotional campaign for the SL72 shoes, originally released for the 1972 Munich Olympics, an event overshadowed by the massacre of 11 Israeli athletes by the Palestinian militant group Black September. The controversy erupted after the state of Israel criticized the campaign on X, highlighting Hadid's past statements deemed antisemitic and her vocal support for Palestinians during the Israel-Hamas conflict. In response to the backlash, Adidas withdrew Hadid's ads and pledged to revise the campaign, acknowledging the unintended connections to tragic historical events. The 1972 Munich incident involved Palestinian militants taking Israeli athletes hostage, leading to their deaths and a German policeman's during a botched rescue attempt. Social media reactions were mixed, with some defending Hadid and others calling for a boycott of Adidas. Hadid, who has openly criticized Israeli policies and supported Palestinian causes, was not available for comment. The ongoing Israel-Hamas war continues to polarize public opinion in Hollywood and among influencers regarding the conflict. The tag cloud below shows a list of Adidas trademarks filed in the EU in 2024, along with their related trademark classes and descriptions, providing insight into the company’s extensive intellectual property activities across various product categories.
  
  

  
  

  23/07/2024

• Google's Failed Bid to Derail Microsoft Antitrust Settlement

  
  
  
  Google attempted to thwart a Microsoft antitrust settlement in the EU by offering a $500 million alternative deal to the Cloud Infrastructure Services Providers in Europe (CISPE), Bloomberg reported. Google proposed a package that included over five years of software licenses and $15 million in cash, contingent on CISPE maintaining its complaint against Microsoft. However, CISPE ultimately accepted a settlement with Microsoft, frustrating Google's efforts. The initial complaint, filed in 2022, accused Microsoft of harming the European cloud ecosystem by increasing costs for rival cloud services. Despite Google's counteroffer, CISPE members voted to accept Microsoft's proposal, which addressed their concerns over Microsoft's allegedly anticompetitive practices, although details of the settlement remain undisclosed. The settlement allows European cloud providers to offer Microsoft services on local infrastructures. Google's cloud division has recently gained traction, achieving $900 million in profits in Q1 2024, underscoring its strategic focus on the cloud market amid slowing growth in search advertising.
  
  

  
  

  19/07/2024