Wednesday, January 31, 2018

Jeff Bezos finally woos Warren Buffett to partner with Amazon

it is a difficult admission on the part of Warren Buffet to admit that he missed Amazon as an investment for a very long time.

The recent partnership between Berkshire Hathaway,  J.P. Morgan Chase and Amazon may be the absolute chance for Buffet to make the right choice.

Instant Pickup, the newest fulfillment service from online retail behemoth Amazon has just launched.  Taking efficiency a notch higher, Prime members ordering online will be able to grab items in a record two minutes or less. This service debuts at five staffed pickup locations near U.S. college campuses.

To deliver on the two-minute timeline, Amazon has limited the selection of items that can be fulfilled that fast. From the news release introducing the new service eligible items include personal care products, electronics accessories, devices such as the Echo Dot and Fire TV, drinks and snacks.

Amazon currently runs 22 college pickup locations nationwide but will from today roll-out the Instant Pickup service in five; College Park, Md. (University of Maryland), Los Angeles (UCLA), Columbus, Ohio (Ohio State), Berkeley, Calif. (UC Berkeley) and Atlanta (Georgia Tech). The company says that the momentum will be sustained as more locations will be unveiling the service in the months ahead.

Amazon has varied programs in fast fulfillment and in-store retail, for example it offers a 15-minute pickup for Prime members at an extra $15/month to enjoy the Amazon Prime Fresh Add-on service. This is available at its two Seattle AmazonFresh Pickup locations.

Other variations include Amazon Lockers pickup sites and Prime Now delivery program. All these options give customers leverage on how fast and in what way they want to get their purchased items. Instant Pickup is the newest trial by the company to increase appeal in fast fulfillment and solidify loyalty.

Guide: According to Amazon the procedure for Instant Pickup is pretty swift since all locations offering the service will always have what they call ‘curated inventory’ on-site. This will prevent out-of-stock situations and provide super-fast fulfillment for customers using the service. While shopping, Prime members will be able to see the select items that are eligible for Instant Pickup. When they click “Buy Now” a notification is triggered to an associate who puts the purchased item(s) in a locker. The customer will then receive a unique barcode. Scanning this barcode will open the locker giving the customer access to the order inside the locker in two minutes or less.

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Tuesday, January 30, 2018

Walmart uses data to counter rival Amazon

Walmart’s e-commerce segment has shown massive growth and its grocery unit remains unassailable even as a fierce battle looms in the wake of the Amazon-Whole Foods alliance.

Walmart’s food segment recorded the highest quarterly sales growth in five years while the online unit led by Jet.com founder Marc Lore, registered a 60 percent growth according to CEO Doug McMillon’s quarterly earnings call held on Thursday. With the acquisition of Bonobos and Jet.com in the past few years e-commerce is becoming a key strategy for Walmart with a stream of items coming online coupled with incentives like free, two-day shipping.

Amazon opened its first two pick up grocery stores upping the ante in the race to provide convenience to customers. To remain competitive Walmart is investing in grocery pick up and delivery systems as an important component of online shopping. McMillon said that more than 100 “automated pickup towers” will be deployed in stores nationwide to enable customers pick up orders placed online. Employees can also sign up to deliver orders directly to customers in a program being tested in some locations.

Walmart’s stock was down Thursday after release of the earnings report, but shares were up and rising in trading on Friday morning.

McMillon emphasized that Walmart, in its competition with Amazon, is adopting various technologies, some on experimental basis to build a digital enterprise that is responsive in a fast-paced environment. He added that they are already using machine learning to assist merchants with pricing and have initiated tests with image analytics that can scan aisles for out of stock.

Walmart’s resolve to pursue technology is apparent in its new “Scan & Go” app which looks like a manual version of Amazon Go. Users simply need a smartphone to breeze through the shopping experience. The app scans barcodes on items to be purchased and one only needs to click on a button to pay. However, shoppers who do not own smartphones are not left out. They can use hand-held scanners within the stores. On the way out of the shoppers will only need to show their digitally generated receipt to a greeter, saving precious time.

In its quest to enhance customer experience, Walmart is consolidating similarly colored items together in an effort to visually endear customers and positioning produce strategically at store entrances in a wider layout overhaul as reported by Forbes. Employees are also tipped on how to discerningly select produce for customers’ online orders to their satisfaction.

In a report by Digiday Walmart is also joining other giants in the world of advertising owing to its massive customer database envied by many.

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Sunday, January 28, 2018

Amazon applies for patent in a bid to have a self driving ground vehicle for package delivery

Amazon is seeking a patent for an autonomous ground vehicle or AGV, which can take packages from a delivery truck and bring them to a customer’s doorstep.

In a filing published last week, which looks similar to one that was done last year, where Amazon, the Seattle-based retailing giant was granted a patent to operate an airship that will be used to track drones as they deliver items to customers. This patent is in addition to the other one published late last year to have a floating warehouse or an “airborne fulfillment center,” which would store merchandise for multiple drones to deliver. The concept, also known as an airborne monitoring station, or AMS, is detailed in a patent application that was filed two years ago and published Tuesday.

In the concept, the airships will fly at high altitude and will be equipped with high-tech wireless communications gadgets including weather-monitoring equipment and high-definition cameras capable of scanning expansive terrain through wireless telemetry and imagery to monitor dozens of delivery drones and link all these to ground stations.

In some variations documented by the inventors, the airborne monitoring station can fly at low altitude to show visual advertisements, issue audible broadcasts, deliver e-books or gather visual coverage information over metropolitan areas.

Wal-Mart, another retail giant battling Amazon has unveiled its own plans for airship warehouses in what is seen as the ‘war of the skies.’ The U.S. Patent and Trademark Office last week published Wal-Mart’s application for a “gas-filled aerial transport and launch system of unmanned aircraft systems.”

The invention will help Wal-Mart to transport packages together with the drones between cities. The flying warehouse will have pilots or could be operated remotely. Flying at altitudes of 500 to 1000 feet and unleashing drones to deliver items to customers the system would address the “need to improve the customer service and/or convenience to the customer,” according to the application. It adds that “flying the goods on an airship could deliver products more conveniently and at lower cost than using trucks.”

Wal-Mart has been filing patents for hundreds of applications for technologies such as personalized in-store advertising, augmented reality and the drone delivery system. This is according to CB Insights.

Wal-Mart’s system is very similar to Amazon’s patented version. However, Longhorn IP patent expert Khaled Fekih-Romdhane told Bloomberg News that Wal-Mart’s concept has an improved probability of approval because the application gives more detail on the implementation of the system.

All these concepts by Amazon and Wal-Mart may never become reality but they are an indication of the extent to which the two giants will go to cement loyalty and increase market share by improving customers’ experience through convenience.

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Saturday, January 27, 2018

Walmart ventures into E-books as it tackles Amazon

Walmart has announced a partnership that will help it start selling e-books in a space that is largely dominated by its archrival Amazon. The deal with e-reader maker Rakuten Kobo will see the retail giant start selling Kobo e-readers, e-books and audiobooks in U.S.

Walmart’s e-commerce segment has shown massive growth and its grocery unit remains unassailable even as a fierce battle looms in the wake of the Amazon-Whole Foods alliance.

Walmart’s resolve to pursue technology is apparent in its new “Scan & Go” app which looks like a manual version of Amazon Go. Users simply need a smartphone to breeze through the shopping experience. The app scans barcodes on items to be purchased and one only needs to click on a button to pay. However, shoppers who do not own smartphones are not left out. They can use hand-held scanners within the stores. On the way out of the shoppers will only need to show their digitally generated receipt to a greeter, saving precious time.

In its quest to enhance customer experience, Walmart is consolidating similarly colored items together in an effort to visually endear customers and positioning produce strategically at store entrances in a wider layout overhaul as reported by Forbes. Employees are also tipped on how to discerningly select produce for customers’ online orders to their satisfaction.

In a patent filing last year Walmart outlines an autonomous machine that’s essentially a floating warehouse complete with launching bays for multiple drones that would in turn make deliveries to shoppers’ doorsteps. Flying at between 500 feet and 1000 feet high, the warehouse can also be operated remotely.

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Friday, January 26, 2018

Amazon Restaurants lays off staff as competition stiffens in food delivery

Amazon is keeping both feet in the food delivery sector even as competition from the likes of Uber and Postmates takes away market share. In a sign of tough times, Amazon Restaurants has sent home an unknown number of workers in a bid to stabilize the business in a sector that is reportedly making losses. Multiple unconfirmed sources indicated that more than 50 employees have been let go in a restructuring effort.

Amazon Restaurants is struggling in a crowded marketplace that has formidable opponents like Uber, Postmates, GrubHub, DoorDash, Eats and numerous others. The U.S. food delivery market is estimated to be worth more than $40 billion.

Meanwhile the parent company, Amazon, released a statement saying that the company continues to hire across its many divisions and currently has on its payroll more than half a million employees.  It added that they are regularly appraising positions across the board resulting in ever-changing employee numbers. The statement further emphasized that the online giant always tries to fit employees who are laid off in other positions within the organization.

The company has entered into partnerships in its effort to increase market share. Last September, it announced an alliance with Olo, a software maker for restaurant ordering. The deal provides Amazon with a database that has thousands of customers and integrates orders directly into restaurants’ point of sale systems.

Amazon Restaurants launched operations back in 2015 when it made its first deliveries in Seattle, Amazon’s hometown. Since then the company has expanded its network and now provides the service in London and 20 U.S. cities. The service is available to Amazon’s Prime members.

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Google launches audiobook store to rival Amazon’s Audible

Google, through its Play Store has announced a renewed thrust into the world of audiobooks by launching a dedicated store that will rival Amazon’s Audible. This will enable the search giant to cement its grip on customers buying its smart speakers by providing auxiliary services unique to its devices.

The rivalry between Google and Amazon has created a wall between their devices and services. Amazon’s Audible cannot play on Google Home while Google’s audiobooks cannot play on Amazon’s Echo. The lack of integration between the two giants is conspicuous considering that Google Home and Amazon Echo work seamlessly with other services from various vendors.

The incompatibility of the two companies’ devices and content can be attributed to their desire to fence in users as they continue to grow their market share for smart speakers. Users will therefore decide which smart speaker to buy based on whether they will be able to play their favorite audiobooks.

Google is launching the audiobook store on Play. However, the Google Play Books app will be able to run on both Android and iOS devices. The service will let users buy books on a one-off basis instead of a monthly subscription. With big discounts at launch, the company is hoping to tap into a reader base that may have been discouraged by subscription services because they aren’t heavy readers. Some of the big discounts include $5.99 for a one-off purchase of “Why Not Me?” by Mindy Kaling which is selling for $21 on Amazon’s Audible. “Lincoln in the Bardo” by George Saunders is being sold for $8.99 compared to $24.50 on Audible. These discounts may be aimed at attracting an audience and will definitely not last long.

Amazon’s Audible has a subscription service that offers one book per month for $14.95 which is also a huge discount compared to buying a standalone audiobook.

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Thursday, January 25, 2018

Amazon intends to conduct the next phase of HQ2 hunt quietly

Amazon is likely going to move into the next stage of choosing its second headquarters without the kind of publicity exhibited during the request for proposals. According to people familiar with the process, the company would like to stop the public nature of the first phase and conduct the next steps quietly.

The competition that attracted 238 cities aims to identify a location that will host a $5 billion second headquarters for Amazon in North America. This is expected to create 50,000 high paying jobs with average salaries of $100,000 per year. With other additional benefits to the local economy, most cities rushed to submit proposals with the hope of landing the lucrative deal.

Last week Amazon announced a shortlist of 20 cities for HQ2. The list includes Montgomery County, Dallas, Indianapolis, Pittsburgh, Miami, Raleigh, Atlanta, Chicago, Newark, Toronto, Northern Virginia, New York City, Philadelphia, Nashville, Columbus, Denver, Los Angeles, Austin, Boston and Washington, D.C.

Moving forward, the online retail giant will request supplementary information from the shortlisted cities and visit each city before announcing a winner

After the jostling and publicity stunts that characterized the first round of the competition, the next process will be more about the value and material basis of the proposals. Amazon will be choosing the proposal that best meets its criteria and benefits it the most.

According to the Request for proposals, Amazon is looking for a location with a steady supply of talent in software development and related fields as well as an environment that is business-friendly. On the business-friendly part, Amazon is seeking incentives that could range from workforce grants, utility incentives to tax credits and exemptions. The preferred candidate will be a metropolitan area with more than one million residents with viable real estate and transit options.

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Tuesday, January 23, 2018

Amazon’s Check-Out-Free Store has opened in Seattle

Amazon on Monday ventured into new ground with the opening to the public of the first store where shoppers don’t have to wait in line. The convenience store, known as Amazon Go has for the past two years been used by Amazon employees which has helped the company to fine tune various aspects. The store brings convenience to shoppers by allowing them to pop in using their smartphones, pick items from the shelf and walk out without interacting with a cashier at check-out.

The process of shopping without waiting in line is accomplished using advanced technology that incorporates sensors and cameras around the store that keep track of what shoppers pick from the shelf. Artificial intelligence plays a big role in linking up all these with the smartphone app enabling the system to charge the customer automatically.

The store is structured as a convenience store with meal kits, takeaway foods like sandwiches, salads and assorted beverages.

The store, situated in downtown Seattle under Amazon’s offices, will have staffers operating out of sight to monitor activities and step in if need be.

Such a system that uses the latest AI technology will help retailers achieve more at minimal costs eliminating the expensive and inconvenient checkout process and improve the shopping experience. It may also have far reaching implications on jobs in the retail sector.

Amazon will be hoping for the maiden store to perform well and lead to more of the same across the country. With the acquisition of Whole Foods the company seems focused on ramping up its brick-and-mortar presence. With rumors of the possibility of the company acquiring Target, the move into physical stores may have just started for the online behemoth.

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Monday, January 22, 2018

Amazon hires leading Seattle doctor to join its health division, sources say

Amazon is ramping up its interest in health care by its latest hiring of a leading Seattle doctor, according to sources who are not authorized to speak on internal matters.

Martin Levine of Iora Health, which focuses on Medicare patients in six U.S. markets, is one of Amazon’s most high-profile hires to date in health. It’s not yet certain what Levine’s role at the company will be, said the sources, who asked not to be named because no announcement has been made.

Levine, a geriatrician who has focused on treating elderly patients with complex medical conditions, could be joining Amazon’s internal health-care group known as 1492, which is testing a variety of secretive projects.

Amazon didn’t immediately respond to a request for comment. We tried to contact Levine through LinkedIn and haven’t heard back.

Last year, Amazon recruited health-technology expert Missy Krasner from Box. Krasner works on “special projects” at Amazon, according to her LinkedIn profile.

Amazon has also long been interested in learning about innovative health-care models. The company convened a secret meeting in Seattle a year ago with a group of executives that had rolled out creative approaches to patient care.

A half-dozen people outside of Amazon were in attendance, including representatives from Iora, Kaiser Permanente, and Qliance, a primary care group with funding from Amazon CEO Jeff Bezos that shut down in May of 2017, one source said.

Iora has long been a standard-bearer for better primary care, which it achieves by investing in customer service. Its practices accept patients through an employer or a private Medicare plan. Most of these groups are looking to cut down on their health care costs.

Iora has raised more than $124 million in venture capital from a mix of technology and health investors.

Levine spent four years at Iora, according to LinkedIn. In the position of market medical director, he treated patients and also supervised a chain of clinics, designed the health plan and helped managed a team of about 45 staff.

One potential role for Levine at Amazon might be to investigate whether the company should invest in new forms of primary care for its own employees. Whole Foods, which Amazon acquired last year, once explored getting into the health clinic space. CEO John Mackey told Bloomberg that he saw healthy food as key to solving American’s health care problems.

“Many smart employers over the last several years have developed an onsite or near-site clinic,” said Dave Chase, a Seattle-based health investor and an expert in employer health benefits. Chase said a clinic that served Whole Foods and Amazon employees would make “economic sense.”

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Sunday, January 21, 2018

Amazon may inch closer to profitability through advertising

Amazon has for decades been making loses thanks to re-investments in logistics that keep this internet juggernaut running.

For more than two decades, Jeff Bezos has famously sacrificed profit for growth, persuading Wall Street that Amazon.com Inc. was best served pouring money into the logistical nuts and bolts that have turned his company into the Wal-Mart of the web. More recently, investors have found solace in the company’s profitable cloud services business, which has helped offset losses in e-commerce. Still, for the past five years Amazon’s average profit margins have languished at about 1 percent.

Now along comes a business that could generate consistent and healthy returns: It’s called advertising. Over the past several years, Bezos & Co. have quietly put together the pieces for a marketing platform that lets Amazon make money from the sheer size of its audience.

Having bet on Amazon cloud services and pushed the shares past $1,300, investors are now salivating about the ad business, which doesn’t require big investments in new data centers or shipping hubs and generates fat margins. On Monday, BMO Capital Markets upped its Amazon price target to $1,600 a share, based largely on the growth of the ad business. Some analysts are predicting Amazon will reach $2,000, making it the first company with a $1 trillion market value.

“Advertising is the most profitable business in the world,” says Jay Kahn, a partner at Light Street Capital, who notes that Chinese e-commerce giant Alibaba Group Holding Ltd. gets more than half its revenue from ads. “For Amazon, advertising is going to be more profitable than its cloud business.”

On Thursday Amazon once again reminded the world of its growing dominance, revealing a shortlist of North American cities vying to host the company’s second headquarters.

For years, Amazon kept advertising on the site subtle for fear of alienating shoppers who had become used to choosing what to buy based largely on customer reviews and price. Amazon has been slowly giving more prominent placement to sponsored products in search results, forcing brands to buy ads to win top billing. It’s easy to see why. By 2021, advertising on websites and mobile devices will account for half of all ad spending in the U.S., capturing greater share than television, radio, newspapers and billboards combined, according to EMarketer Inc.

So far, that shift that has mostly benefited Google and Facebook. By contrast, Amazon has a tiny advertising business that last year generated $1.7 billion in revenue, according to EMarketer, compared with Google’s $35 billion and Facebook’s $17.4 billion. But it’s growing quickly because companies like Procter & Gamble and Mondelez see Amazon as the place to win the “digital shelf” in the same way they fought to win the physical shelf in supermarkets.

Amazon has an advertising platform no other company can match: a web store selling hundreds of millions of products combined with a streaming entertainment service and a trove of data about customer preferences. Amazon attracts 180 million U.S. visitors each month—all or most with shopping on their mind. And as more people shop on smartphones, they’re skipping search engines like Google for Amazon’s mobile app.

Advertisers are paying attention. Just as big brands pressed their ad agencies a few years ago to devise plans to get the best bang for the ad buck with Google and Facebook, they’re now demanding an “Amazon strategy.” In November, ad giant Omnicom Group set up a specialized operation just to direct ad dollars to e-commerce, particularly Amazon, which has forced consumer brands to re-evaluate marketing decisions. “It’s wreaking havoc on traditional retail models,” says George Manas, president of Omnicom’s Resolution Performance Marketing.

In negotiations with advertisers, Amazon bills itself as a better advertising investment than Google’s search engine and Facebook’s social media platform since people on Amazon are looking to buy, according to three people familiar with the negotiations. Amazon declined to comment.

“Similar to the candy and magazine racks, which are the most valuable space in the store, Amazon is the most valuable space on the web because you are at the very bottom of the funnel,” says Scott Galloway, a marketing professor at New York University’s Stern School of Business and author of The Four: The Hidden DNA of Amazon, Apple, Facebook and Google. “Not only are people about to make a purchase, but you know what’s in their basket. It’s hard to imagine a more target-rich medium than Amazon or robust offering.”

Amazon advertisements also offer real-time insights into how a marketing campaign is performing, a process that typically takes weeks when using traditional methods like TV commercials or coupons. “You can put a sale on Amazon and see relatively quickly if there’s an uptick,” says Neil Ackerman, a former Amazon and Mondelez executive who leads innovation for Johnson & Johnson’s global supply chain. “Amazon realizes it can use this to grow ad revenue and it can charge more because it provides instant results.”

Meanwhile, Amazon is pushing beyond the sponsored search results and display ads that are the bulk of its ad business. The company is more aggressively selling itself as a lifestyle media brand that influences purchasing decisions elsewhere, similar to magazine advertisements or billboards, the people said. It is increasing its investment in a data team tasked with measuring how advertisements on Amazon generate sales beyond Amazon, one of the people said, since that is more difficult to measure than advertisements on Amazon that directly result in sales.

Future advertising products could include buying products within Amazon Video programs, using the “X-ray” feature that currently lets viewers learn more about a particular actor during a show, according to two people familiar with the matter. And while Amazon maintains it won’t sell advertising on its voice-activated Alexa platform, advertisers are inquiring given the buzz around its Echo digital assistants, two people said.

Big packaged goods companies are signing on. Executives see Amazon as the future way to reach shoppers and are shifting spending from traditional advertising channels to cement their place with Amazon. Even though Amazon has small grocery market share, brands think the next few years are critical because once shoppers establish regular shopping lists online, it will be hard to woo them back. Big grocery brands and manufacturers spend $225 million on advertising and in-store promotions each year, with more money shifting to digital advertisements, according to Cadent Consulting Group. Big Food has been mired in a sales slump for years amid changes in how consumers shop and eat; having an Amazon strategy helps them signal to Wall Street they’re keeping pace with the changes.

“Grocery manufacturers and brands are shifting money because they don’t want to lose on Amazon,” says Guru Hariharan, a former Amazon executive and CEO of Boomerang Commerce, which makes software that help brands sell online. “You cannot lose the Amazon battle and hope to survive over the next 10 years.”

Ultimately Amazon could upend the entire advertising industry, although some analysts believe Google will withstand the threat, as it did when Facebook pushed into the market. The ad money going to Amazon isn’t necessarily being redirected from Google. Instead it is dollars once allotted for television or offline retail promotions, according to Resolution Performance Marketing’s Manas, who says: “I’m seeing it come from all sorts of nooks and crannies.”

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Amazon is making Alexa more robust by adding features that work in third party skills

Saturday, January 20, 2018

Amazon ramps up Prime membership fee to $12.99 and leaves annual fee intact

Amazon is increasing the monthly price option for Prime from $10.99 to $12.99 as it continues to expand the reach and benefits of the popular fast-shipping program.

Amazon said the price increase does not affect the annual membership option, which will remain at $99. With the price increase, the monthly option will now equal slightly less than $156 for a year. Amazon has been investing heavily in Prime, bringing it to new markets and creating additional benefits and original content. Those moves, plus regular increases in fees from shipping partners, are among the factors contributing to the price increase.

Amazon says it has no preference on the annual versus monthly option. However, offering a monthly service with no contract or guarantee carries with it a cost to manage and volatility that isn’t present with the more dependable annual option.

The increase begins today for new members, and existing monthly Prime subscribers will see the cost jump after Feb. 18.

Prime membership for students, discounted at half the monthly cost after a six-month trial, rises to $6.49 under the new pricing structure. The standalone Prime Video subscription of $8.99 per month and a discounted program for people on government assistance will stay at current prices.

The introduction of a monthly Prime subscription and the standalone Prime Video option in April 2016 gave Amazon a comparable offering to streaming rival Netflix. Today’s move shows Amazon is still tinkering with the monthly option to find the right formula.

Amazon said Prime has grown from 20 million eligible items a few years ago to more than 100 million today. One-day and same-day delivery is now available in more than 8,000 markets.

Earlier this month, Amazon said it shipped 5 billion Prime items in 2017. To ship all those items and fill all those orders, Amazon upped its global footprint of distribution centers by 30 percent last year. In the U.S. alone, more than 6,000 trucks and 32 Amazon Air planes traversed the roads and skies, packed with Amazon packages.

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Thursday, January 18, 2018

Amazon is a ‘monster’ set to continue its winning streak, analysts say

The wins just keep coming for Amazon.

The e-commerce giant has risen every trading day so far this year and is on track for its 10th straight day in the green, its longest winning streak since mid-2013. Those gains have pushed Amazon to the highest level of its two decades as a public company.

This streak isn’t over yet, according to two market watchers.

“They’re just executing on every possible front which is incredibly unusual for such a large company,” Boris Schlossberg, managing director of foreign exchange strategy at BK Asset Management, said Friday on CNBC’s “Trading Nation.”

“Amazon is a monster and has multiple streams of possible income,” he said.

Those revenue streams include Amazon Basics, advertisements through its search platform, its artificial intelligence program Alexa, and its new reputation as a creative powerhouse, said Schlossberg. Earlier this month, Amazon’s streaming service won a Golden Globe for its latest series, “The Marvelous Mrs. Maisel.”

Max Wolff, chief economist of The Phoenix Group, agrees that Amazon has potential for more gains.

“In a melt-up market where people are buying a lot of quality names like it’s going out of style , this one looks like it’s got legs to go,” said Wolff, joining Schlossberg on “Trading Nation.”

Even in a market hitting new highs, Amazon has managed to outpace its peers. Since the beginning of the year, the stock has close to 13 percent, nearly triple the S&P 500‘s year-to-date gain. Amazon has also exceeded the Technology Select Sector SPDR ETF’s 5 percent rise and is the second best-performing FANG stock of the year, coming in behind Netflix.

There is some risk to Amazon’s ascendancy this year that could be delivered directly from the White House, said Schlossberg. President Donald Trump has frequently targeted Jeff Bezos, Amazon’s founder and the owner of The Washington Post. Among Trump’s tweeted attacks, he has suggested levying an internet sales tax against Amazon and said that its cheap delivery prices are devastating the United States Postal Service.

“But policy by Twitter is not a risk you can handicap,” Schlossberg added.

Wolff has a price target of $1,400 to $1,500 on Amazon shares, representing 7 percent to 15 percent upside to current levels. Schlossberg does not have a price target on Amazon shares.

Other analysts generally have a positive view of Amazon and its chance for growth. BMO Capital recently upped its price target to $1,600 from $1,200, the highest forecast among analyst firms. Of those surveyed by FactSet, more than 80 percent have a buy rating on the stock. The average target price of $1,343 a share represents 2.5 percent upside to current levels.

 

Disclaimer

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Amazon’s health ambitions confirmed? Company seeks medical data compliance leader for mysterious new initiative

Tuesday, January 16, 2018

Amazon zeroes in on video and the smart home in its newest patent filings

Amazon has developed an arsenal of patents over the years and this is unlikely to change with 500 more pending at the moment.

The company’s recent focus is on augmented reality, video and the smart home. All these patents may not necessarily transform into products or services but historically Amazon has filed some notable patents that have given it an edge over competitors. The company’s patent for one-click shopping for example, gave it an advantage over other retailers and brought in loads of money through licensing fees before it expired last year. That patent, issued in 1999, lets customers buy things in one click of the button without re-entering their shipping or billing information.

This past December, Amazon was given a patent for a “smart” sensor-packed package delivery air vehicle in line with its envisaged drone delivery system. In the same month it was issued with a patent for technology that would enhance user privacy on the Echo’s video mode through pixelization. Other patents obtained include one for detecting hacked autonomous cars and another for an augmented reality mirror.

The augmented reality mirror allows users to use a variety of backgrounds with cameras and lights to try on clothes virtually. This will come in handy as the retail giant gets into fashion.

Its patent on technology to detect hacked autonomous cars could be licensed to third parties such as Uber Tesla or Alphabet who are already leaders in the field of self-driving cars. The technology on pixelization will help users to mute the video on their Echo devices when video conferencing through image blurring.

Amazon obtained patents related to cloud computing early on which has made it difficult for late entrants like Google and Microsoft to compete giving the company a huge lead. Now that cloud computing has become a mainstream adoption, Amazon’s cloud computing unit, AWS, is now a leader in its field and the company’s most profitable division.

Amazon has been amassing this huge compilation of patents since the dotcom bubble and hasn’t stopped. Today the company has over 6,000 patents and counting under its wings giving it an dvantage that no other company among the Fortune 500 can match.

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Taking a different approach can lead to riches, Cramer says

CNBC’s Jim Cramer says that investors who go against the old adage of assuming that a bubble has to burst may actually make money.  He alludes to the old days when it was always obvious that a wave such as the dotcom one, which led to artificially overrated internet stocks, would eventually burst – and yes, it did.

Eventually people began to associate any hype around tech stocks with that dotcom bubble leading to a lot of caution even where investors would have made a kill.

Speaking on his “Mad Money” program, Cramer said that having been in the business that long he has realized that the if  investors took that kind of caution they would have missed the billion-dollar stocks we see today. He singled out the top tech stocks like Amazon, Facebook, Alphabet and Netflix as a phenomenon that was treated differently by investors coming out of the dotcom bubble. They put their money in companies that had every likelihood of going the dotcom way and had faith that this time around it was going to be different – and yes indeed it was different.

These unknown entities of that time have grown to dominate the world today. Facebook has grown from a Harvard craze to become a $521 billion company straddling every continent. Amazon has matured from a mere online retailer where one hoped they would deliver a product after giving them credit card information to a $629 billion conglomerate that keeps growing bigger.

Google has ballooned into a $782 billion behemoth after starting off as a simple website where one got information by typing in anything and an unknown company that rented out DVDs has transformed itself into Netflix, a $95 billion video streaming giant.

According to Cramer, anyone who held the old thinking that everything would be the same, lost out on a gamble that has produced four companies that have made billions for those that dared to believe.

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Monday, January 15, 2018

Dreamers receive boost from Amazon CEO Jeff Bezos in their quest for education

Amazon CEO Jeff Bezos and his wife, MacKenzie Bezos, donated $33 million to fund scholarships for 1,000 undocumented immigrant high school graduates to go to college.

The money will go to TheDream.US, a nonprofit that has been helping send such kids, known as the dreamers, go to college. The group is already funding scholarships for almost 3,000 kids currently in college, with backing from the foundations of other techies, including Bill and Melinda Gates, Mark Zuckerberg and Priscilla Chan, and Pierre and Pam Omidyar.

Bezos said his father immigrated to the United States at age 16 from Cuba. “He landed in this country alone and unable to speak English,” Bezos said in a statement. “With a lot of grit and determination—and the help of some remarkable organizations in Delaware—my dad became an outstanding citizen, and he continues to give back to the country that he feels blessed him in so many ways. MacKenzie and I are honored to be able to help today’s Dreamers by funding these scholarships.”

Dreamers, who were typically brought into the country as young children, are not eligible for federal grants and loans or state aid in 44 states. The group has become a political cause, after President Trump last year rescinded a 2012 order by President Obama allowing immigrants who entered as minors to avoid deportation and obtain work permits. Trump and lawmakers in Congress are discussing a deal to revive the arrangement as part of a broader immigration reform.

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Unlike former Microsoft (msft) head Bill Gates, Bezos has not yet decided how to give away the bulk of his vast fortune. Bezos passed Gates to become the richest person in the world last year. Last June, Bezos tweeted that he was looking for suggestions for his charitable giving.

“I’m thinking I want much of my philanthropic activity to be helping people in the here and now—short term—at the intersection of urgent need and lasting impact,” the Amazon (amzn) CEO wrote.

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Sunday, January 14, 2018

Smartphones addiction problem gives Amazon Echo and Google Home advantage over Apple

While investors pressure Apple to address youth phone addiction, experts are more optimistic about the voice-enabled smart speakers that Google and Amazon want to plunk into your living room.

At their most ambitious, Amazon’s Echo and Google’s Home devices are meant to transform the way you manage your life and control your home, using artificial intelligence to put an ever-increasing range of capabilities at your command. But at their most basic, they simply allow you to spend less time tapping away on a screen. And as Apple’s current scrutiny underscores, that can be particularly important when it comes to kids.

Solace Shen, a researcher at Cornell who has studied children’s interactions with intelligent technology, says she sees a big opportunity for educational and entertainment content on these devices that doesn’t suck kids in in the same way that a smartphone would.

“Playing a game with an adult or another child using a voice-enabled device, you’re not focused on a screen, so the interaction encourages you to look at each other and pay attention to each other,” Shen explains. “That’s a unique advantage of these voice enabled systems. If they’re designed right, they can be unobtrusive, but speak up when needed.”

Both Google and Amazon already have a wide range of children’s content available, including trivia games, stories, and interactive question sessions with characters from the likes of Sesame Street or Disney. They also both have ways to set up profiles for young children with parental controls to easily monitor usage and what a kid has access to. And both companies have plans to keep expanding their offerings in the coming year.

“You’re going to see us invest heavily in expanding both the experiences and the content we produce for kids and families in 2018,” Raunaq Shah, a Google Home product manager, told late last year. “The reception to the features that we’ve launched so far has been tremendous and there’s really a huge opportunity for us to make the experience for kids and families even better.”

He highlights how the communal and public nature of these devices can allow parents to feel better about letting kids get comfortable with them — it’s hard to have secrets when everything you ask gets logged in a mutually accessible search history or can be heard out loud when you ask it. Plus, kids can be entertained or informed without the dopamine hit of notifications that come when you fire up a phone.

“If you watch a kid with the smartphone, all the bells and whistles are just so seductive and addictive,” says Marika Lindholm, sociologist and founder of ESME, a site for single moms. “With the Echo or the Home, there is the opportunity for much more listening and interaction.”

The barrage of notifications and social applications on a phone can cause anxiety and encourage a kind of digital relationship that just isn’t possible with smart speakers as we know them now. And there are early signs that when people use smart speakers, their usage becomes a substitute for time on smartphones: Two-thirds of people who use digital voice assistants use their phones less often, according to a new survey published by tech consultancy Accenture.

Lindholm has heard fears that kids could end up thinking of the assistants as real people and looking to them for things that they’d otherwise talk about with a parent. An amusing example of this can be seen in a short video by Brett Gaylor that documents his five-year-old’s son’s obsession with Google’s voice commands.

While Google’s Shah said that that video made him feel “warm and fuzzy” inside, some may see it as portending a slightly disturbing future. The idea that children could be taught so much by these new devices — especially when these assistants have so far proven that they often get information wrong — is a little scary. Meanwhile, studies have shown that young children see these assistants as “semi-animate” and some parents have complained that because you don’t need “please” or “thank you” to control the devices, it encourages bad manners.

Plus, YouTube’s struggles last year to keep disturbing content out of its children’s feeds could make some parents wary of placing trust in kid settings.

Ultimately, though, as with any other technology, the onus is on the parent to instruct their child on etiquette, set limits and moderate usage.

“You should model them to kids not as a toy or a reward or a god-given right to have,” says Michael Rich, director of the Center on Media and Child Health at Harvard University. “You say, ‘This is a tool, this is what it does, here’s how you use it, and here’s how and when you don’t use it.'”

Like the other experts CNBC talked to, Rich feels hopeful about the future of smart assistant technologies and how children will interact with them. His 11-year-old son recently bought one of Google’s Home devices with his own money and Rich likes how the device can assist with random questions without always being in his son’s clutches, like a smartphone. Still, he acknowledges that, unlike with smartphones, there haven’t been any real studies yet to see what impacts these smart speakers could have on children.

“They haven’t been out long enough yet — I think the jury’s still out on them,” concludes Dr. David Greenfield, assistant clinical professor of psychiatry and founder of the Center for Internet and Technology Addiction, “But I do think the screened versions of them have potential to be addictive. So far, any internet based technology does appear to have addictive potential.”

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Saturday, January 13, 2018

Trump revisits internet tax in apparent reference to Amazon dominance

In an apparent jab at internet retail giant Amazon, and its CEO Jeff Bezos, President Donald Trump has once again called for an internet tax.

“The internet — they’re going to have to start paying sales tax because it’s very unfair what’s happening to our retailers all over the country that are put out of business,” Trump said Wednesday.

Trump also reiterated concerns about Amazon’s effect on the U.S. Postal Service as it struggles to keep up with online orders.

The comments mirror tweets from the president in December that named the e-commerce giant.

“There’s always been a fear for players like an Amazon or a Google that something like this could actually get through,” Daniel Ives, head of technology research at GBH Insights, told CNBC. “We believe it’s more noise than a real threat.”

There’s been speculation that the president’s shots at Amazon are aimed at Bezos, whose newspaper has published stories critical of the president.

Amazon already collects sales tax on products it sells directly to consumers, but has faced challenges from states over its policy of allowing third-party vendors to charge varying levels of sales tax.

In June South Carolina filed a complaint against the online retailer, and Amazon agreed in November to take on additional third-party tax burden in its home state of Washington.

The issue has garnered more attention as Amazon continues to take a bigger share of overall retail sales. Amazon celebrated its “biggest holiday” shopping season at the end of last year.

There is an underlying movement among traditional brick-and-mortar retailers to more heavily tax Amazon, Ives said, so the discussion is “something you have to keep an eye on.”

But the likelihood that an internet tax would pass is small, he said.

“Listen they’ve [Amazon] significantly changed the retail landscape across the world,” Ives said. “I think it’s more of the same where they’re getting in the crosshairs.”

Trump spoke before media and members of the administration Wednesday evening during the signing of the Interdict Act, which seeks to reduce drug smuggling through the purchase of opioid sensors.

Amazon did not immediately return a CNBC request for comment.

—CNBC’s Kevin Breuninger and Eugene Kim contributed to this report.

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Thursday, January 11, 2018

Amazon’s Echo Show to get rival as Google partners with Lenovo, LG and Sony in smart-screens

Google is working with Sony, JBL, LG and Lenovo to integrate their smart screen display products with Google Assistant.

Google announced today that it will bring its digital assistant to a variety of smart screen display products made by JBL, Lenovo, LG and Sony. These new devices, which Google teased in a YouTube video but did not fully reveal, will be available later this year. We reached out to Google about prices but haven’t heard back.

The search giant’s strategy to work with hardware partners sets it apart from competitor Amazon, which initially decided to make its own touchscreen devices, the Echo Show and Echo Spot.

Google showed off a variety of capabilities for the new touchscreen devices, including calling up calendars, recipes and photos via voice command. The device also lets users watch YouTube videos, a capability now absent from the Echo Show thanks to an ongoing conflict between Google and Amazon.

Google has been playing catch to Amazon and its digital brain Alexa recently. Amazon released the first generation of its Echo smart speaker in the summer of 2015, more than a year before the Google Home smart speaker made its debut. Several other Alexa-powered devices followed in the next few years, including the touchscreen-based Echo Show that was released last June.

Google doubled-down on smart speakers late last year, when it released the Google Home Max and Mini devices, and its emphasis on the Google Assistant hit a whole new level here at CES.

Also at CES today, Google announced a variety of new products powered by the Google Assistant, from smart speakers to TVs to headphones. Google is also adding the Google Assistant to Android Auto and working on deep integration with a variety of LG products.

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Wednesday, January 10, 2018

In new push to PCs, Alexa integrates with Acer, Asus and HP

HP, Acer and Asus are providing new homes for Alexa, Amazon’s digital voice assistant, in several of their new laptops and desktop computers.

The three personal computer giants debuted personal computers on Monday that are designed to work with Alexa, part of a push by Amazon to spread its voice assistant to more third-party devices. The companies announced the new computers against the backdrop of this week’s annual International Consumer Electronics Show, in Las Vegas.

Although most people interact with the Alexa voice assistant through Amazon’s web-connected speakers, the Echo and the Echo Dot, the online retail giant has been increasingly courting third-party companies to embed Alexa in their own devices.

Amazon (amzn), Google (goog), and Microsoft (msft) believe that voice-activated assistants are a new frontier for interacting with computers. As a result, these companies are investing heavily in voice technology and are increasingly debuting products like Google and its Google Home speakers that use voice assistants to do things like play certain songs when asked.

People can already access Alexa on their PCs through an Amazon-sanctioned website for developers to test their Alexa apps, or skills, built for the Echo. The new HP Inc. (hpq), Asus, and Acer computers, however, come with features specifically designed for Alexa and make it easier to access the service rather than having to visit a website.

For example, the HP Pavilion Wave comes with a special LED that lights up to show that Alexa is listening. That computer, like Acer’s Amazon-supported PCs, also contains custom Intel audio processors that are intended to help Alexa better hear and respond to people’s voices.

People can use Alexa on their computers, for example, to check their online calendars, play music or podcasts, and control Internet-connected devices like lights and thermostats in their homes, Acer said.

“Hands-free access to Alexa on PCs can be helpful to customers in many ways, like making it simple to interact with your smart home, get news or weather, set timers, and more,” Amazon Alexa vice president Steve Rabuchin said in a statement. “This is a big step toward making Alexa available wherever customers might need her.”

Alexa’s integration into PCs poses a challenge to Microsoft, which is trying to push its Cortana voice-activated assistant as the preferred way for people to talk to their Windows-powered computers for performing simple tasks. The more people use Alexa instead of Cortana when scheduling appointments to their online calendars, for instance, the less data Microsoft collects for improving Cortana.

Vuzix, a technology and consumer gadget company, also said over the weekend that its Vuzix Blade augmented reality glasses would come embedded with Alexa. The $1,000 glasses can superimpose digital images on the real world, and with Alexa, people can presumably ask the eyewear to also show them weather information, sports statistics, or restaurant menus, according to USA Today.

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Amazon, Pizza Hut and Uber to team up with Toyota in developing autonomous shuttle

Six companies are collaborating to bring to life an electric self-driving shuttle that can deliver packages or people and can be tailored to particular needs.

Toyota Motor President Akio Toyoda revealed the so-called e-Palette concept vehicle and announced the business alliance Monday at CES, the annual tech trade show in Las Vegas. The alliance will focus on the development of the new e-Palette Concept Vehicle in the near term. But the idea is to seek input from these various partners as Toyota develops its mobility business model.

This isn’t just about building an autonomous shuttle. Instead, Toyoda laid out a vision for a larger mobility ecosystem that aims to transition from a company that just produces and sells cars to one that handles all aspects of moving people and things from point A to point B. These shuttles could be used as mobile shops, roving around a business campus, for instance. It could also be used to deliver products to customers or as a way to move people around urban centers.

Toyota plans to test the e-Palette in several regions, including the United States in the early 2020s. It also plans to be at the Olympic and Paralympic Games in Tokyo in 2020. The company didn’t provide further details about its plans for the Olympics and whether the shuttle would be a commercial operation or merely a demonstration.
The all-electric autonomous vehicle—if ever produced—would used Toyota’s “guardian” and “chauffeur” technologies. The company is taking a dual approach to autonomy that it calls “guardian” and “chauffeur,” both of which use the same technology stack.

Toyota has been working to develop fully autonomous cars to serve an aging population and the disabled, and technology for regular production cars that could switch between assisted and full autonomy. Unlike other automakers that might have drivers hit a button to switch in and out of full autonomous mode, Toyota would have it operate silently in the background.

Under “guardian” mode, the human driver maintains vehicle control and the automated system would step in and take control of the car to avoid an accident. “Chauffeur” mode would take over the driving and the vehicle’s occupants would be passengers.

In theory, partners would be able to buy the autonomous e-Palette vehicle with the complete chauffeur technology, or they could opt to use their own automated driving system. Either way, the vehicle would come equipped with the guardian tech to act as a safety net.

The e-Palette is still just a concept. But the company envisions offering three sizes of the automated vehicle with an underlying open software platform that would let companies tweak and customize it to meet their business needs.

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Users of Smart speakers such as Amazon Echo use smartphones less, survey shows

A survey in October and November 2017 by Accenture has revealed that two thirds of digital voice assistant users tend to scale down contact with their smartphones. This may seem a natural progression for the consumer, but for smartphone manufacturers like Samsung and Apple it may portend hard times ahead if they don’t catch up in voice technology.

However, this may be good news for Amazon and Google as they consolidate their lead in voice technology by integrating their voice assistants into third party devices.

The online survey, conducted by Accenture and Harris Interactive, included 21,000 people from 19 countries and was conducted in October and November 2017.

Within the survey, nearly 2,300 people responded to a question asking whether they agreed with the following statement: “Since I got my digital voice assistant device, I use my smartphone for fewer activities.”

66 percent of the respondents said they agreed or strongly agreed.

Within the sub-group who said they use their smartphones less, 64 percent said they use phones less frequently for entertainment services, while 58 percent said they do less online purchasing with their phones; and 56 percent do fewer searches from their phones.

The survey also projected that ownership of digital assistants will skyrocket in 2018, if people follow through on their expressed intent to buy one.

In the U.S., Accenture estimated 21 percent of the online population owns such a device today, and 37 percent will own one by the end of 2018. In India, the figure will go from 14 percent of the online population today to 39 percent by the end of 2018.

Online surveys can present a skewed representation of reality: Respondents sometimes self-select, and tend to be more interested in technology than average consumers. Nonetheless, the large size of the survey makes it noteworthy.

Smartphones dominate consumer attention today, but smartphone companies are several years behind when it comes to home digital assistants. Amazon first released the Echo widely in the summer of 2015 (it was available in a limited trial to Amazon Prime subscribers even earlier), while the first Google Home came out in November 2016.

Apple had planned to release the HomePod, a home audio speaker with its Siri digital assistant built in, for the 2017 holiday season. However, in November the tech giant announced it would delay the release until early 2018.

Samsung is reportedly aiming to release a smart speaker of its own in the first half of 2018.

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Monday, January 8, 2018

Amazon Alexa and Google Assistant to dominate CES 2018 battleground

Las Vegas will showcase the massive CES 2018 under a different scenario when it comes to voice technology compared to last year. Amazon had a field day last year, when Alexa seemed the voice assistant of choice for tech equipment across the board. This year however, the game is wide open with an array of players battling for a piece of the pie.

The search giant’s presence illustrates the emergence of the voice assistant and smart home market as a key battleground in the tech industry. Google traditionally hasn’t had a booth at CES, and the company hasn’t made this kind of mark on the annual event since its co-founder Larry Page delivered a closely watched keynote at CES more than a decade ago.

Amazon will have its own booth for Alexa at CES this year, and it’s promising “exciting new announcements from brands building magical voice experiences with Alexa technology.”

Microsoft Cortana is also expected to have a presence at the show, primarily through industry partnerships, although the Redmond company no longer has its own giant booth on the CES show floor. Apple, which competes in the smart home through its Siri voice assistant and HomeKit platform, is a perennial no-show at CES, preferring to announce its new products at its own events.

Google has an edge over Amazon on smartphones thanks to Android, and benefits from Android Auto in cars and Google-owned Nest in the home. But Google Home and Assistant have been playing catch-up to Amazon Echo and Alexa in the market for smart home speakers.

That market is growing quickly, with analysts at the Canalys research firm projecting more than 56 million smart speaker shipments in 2018, the majority in the United States.

But much more than their own first-party smart speakers, industry partnerships with device makers will be key for Amazon Alexa and Google Assistant to reach critical mass, which is why CES is such an important battleground for them both. Google said last week that Google Assistant works with more than 1,500 smart home devices from more than 225 brands.

After dominating CES last year, Amazon showed additional momentum for Alexa in advance of this year’s show with announcements that the voice assistant is coming to Hisense televisions, Garmin’s automotive infotainment platform, and even an Alexa-enabled bathroom mirror from Kohler.

The Alexa-enabled mirror, the Kohler Konnect-Verdera Voice Lighted Mirror, will be available for purchase in March. However, Kohler says it will also offer connected bathroom products featuring Google Assistant and Apple HomeKit technologies in the future — an implicit nod to the fact that the competition in the voice technology and smart home market is still wide open.

By the end of this week’s show we should have a better sense for whether Amazon will extend its lead or if Google Assistant will make serious inroads against Alexa in the coming year.

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Sunday, January 7, 2018

Technology giants join Net Neutrality Court Challenge

The Federal Communications Commission will be inundated with a barrage of lawsuits after its decision to approve the Restoring Internet Freedom Order. The repeal decision, which was approved December 14, 2017, allows internet service providers to restrict, bar, or charge more for particular content as they deem appropriate.

The Internet Association has announced that it will be joining legal action aimed at restoring net neutrality regulations. The association further said that it will “act as an intervener in a judicial action against this order,” meaning that while not a direct litigant, it will be given certain rights by a court to observe or act in the case. The trade group has a wide range of members including internet giants Facebook, Google, Amazon and Airbnb.

Opponents of the move including content providers, social media companies and internet retailers, claim that this will give leeway to internet service providers to start charging for faster connections on top of amount of data consumed which means startups may find it difficult to compete with established entities. However, proponents of the move say that it was long overdue as it affirms a free market economy and is likely to promote increased investment in infrastructure needed to improve connectivity.

From the time the Federal Communications Commission made the announcement in December, opponents of the action have given every indication that they will take the fight to the courts. Previously, the courts have been lenient to the FCC, giving the agency a lot of leeway in managing stakeholders in the industry but this hasn’t dampened te string of lawsuits. Etsy, for example has indicated that it will take direct legal action in the near future and New York’s Attorney General Eric Schneiderman has also announced that he will sue to block the decision, based on allegedly fake public comments submitted to the FCC prior to the vote.

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Amazon likely to bid for streaming rights to Premier League soccer

Amazon is seriously considering streaming Premier League soccer – by consulting industry experts, and will place a bid in next month’s auction.

As streaming video becomes more popular, Amazon is likely to dominate the sports segment as the battle for the rights for top leagues intensifies.

Amazon paid $50 million to stream 11 NFL games that fall in the prime Thursday night spot. Facebook on the other hand failed in its bid to clinch a deal to stream the Indian Premier League cricket matches after offering $600 million. Twitter, another contender in the streaming race, streamed 10 NFL games at a cost of $10 million.

The trend this year will be for these companies to bid for a lucrative deal like the English Premier League, and then turn focus on major U.S. leagues. These exclusive rights come at a hefty premium and Facebook is reportedly seeking to fill a new position for a senior executive who will be in charge billions of dollars for negotiating favorable rights to major sports leagues.

The use of auctions to settle on who gets the rights to broadcast games has led prices to skyrocket. The contest between big companies with heavy purses has been intense in the past and the entry of these tech giants will only up the stakes for next year. Some estimates indicate that the costs for the rights to the English Premier League may as well swell by 40 percent since it will be an auction.

Currently the rights to the EPL are shared between BT and Sky. BT paid $1.3 billion to broadcast 42 games per season for three years. On the other side of the Atlantic, NBC paid $950 million to gain rights to 19 Sunday Night Football games through the year 2022 while Fox coughed $500 million for 42 Major League Baseball games. This means that if Amazon wants exclusive rights to of major U.S. leagues it will have to up its bid in such a competitive environment.

Amazon stands to benefit more if it wins rights to any of the major leagues. Winning the Premier League rights for 2019-to-2022 would be Amazon’s biggest prize yet that would result in a boost to its Prime program. The Prime membership program has grown to become a goldmine for the company. Prime members have been known to spend more on Amazon compared to non members. Live streaming of popular sports will therefore be an inducement to bring on board new members who in turn would ramp up revenues from subscriptions and also from retail sales.

The hefty price Amazon would pay in an auction would be easily be recouped in the double of new subscriptions and added retail sales.

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Amazon releases new development kits that will propel Alexa to more devices

Third party device makers are always getting access to new developer tools from Amazon that enable them easily integrate Alexa into their products and 2018 will be no different. Alexa, Amazon’s digital assistant is the leader in its class and the company seems focused on making it easier for any device manufacturer to integrate it into their products.

The digital assistant marketplace has become competitive with giants like Apple and Google angling for a piece of the pie. Other entrants like Samsung and Alibaba bring on board formidable arsenals of technology to reckon with. However, Amazon has a competitive advantage in this space with Alexa boasting over 25,000 skills accumulated so far.

In an announcement, the company will be releasing two new development kits – Alexa Mobile Accessory Kit and Alexa Premium Far-Field Voice Development Kit. The former will focus on smartwatches, fitness trackers, headphones and other mobile devices by enebling them to hook up to Alexa Voice Service, Amazon’s core that uses bluetooth technology to add Alexa to connected devices. The latter will be a single chip with the audio algorithms and wake word engine used by Alexa with the same microphone array configurations found in the Amazon Echo and Echo Show.

Amazon’s Alexa Voice Service has the flexibility of letting manufacturers integrate it into their devices and has been open to developers since 2015 giving Alexa greater penetration and enticing third-party developers to use the Alexa Skills Kit  in building skills relevant to the service. Use of cloud services has also made it easier for developers to write code that can integrate into Alexa’s abilities so that spoken commands are understood more seamlessly.

In order to solidify its market share, Amazon provided to developers the artificial intelligence technology Amazon Lex, which is the engine that powers Alexa. To achieve more in the devices domain, the 7-Mic Voice Processing Technology was also made available to third party hardware manufacturers for integration.

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Friday, January 5, 2018

Amazon ramps up presence at CES 2018

Amazon and other tech giants take action to stem Intel chip vulnerability

Several companies have moved quickly to release updates to their products and services in a bid to forestall any exploitation of vulnerabilities in Intel chips.

The vulnerabilities affect a wide range of products and services that not only use Intel chips, but chips from other vendors too. These include servers that are used for cloud computing, computers and other personal devices. This could allow hackers to gain access to information on the chip’s memory such as passwords.

The vulnerability that affects Intel chips is known as Meltdown, while the one affecting other manufacturers is called Spectre.

Microsoft announced that it is working with chip manufacturers to protect its customers by providing updates to its cloud services. The company also said that it has released security updates for Windows used on personal computers and servers that run on chips from different vendors including AMD Intel and Arm. Other updates released were for the company’s Edge and Internet Explorer.

Google has also updated its cloud services to mitigate any possible attacks. The search giant said that updates were performed using the VM Live Migration technology without impacting customer experience. Google customers were however advised to update operating systems they use on the Google cloud. The company added that it has updated its Chrome operating system and has not identified any vulnerability in Android devices.

Amazon on the other hand said that the vulnerability has been present for more than 20 years in processors from Intel, AMD, and ARM across mobile devices, servers and desktops. The company assured its customers that its AWS cloud services were already protected but advised customers to update their operating systems.

Intel, which manufactures chips that are affected by the vulnerability, said that patches to operating systems will not cause performance slowdowns as has been reported elsewhere but in cases where such slowdowns are experienced they are workload-dependent.

Another tech company Red Hat, said that it is working on updates to  its products which will be made available on an ongoing basis. The company, which distributes Linux said that some of their patches are already live and more will be released soon.

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