01/24/17: Yahoo falls under SEC investigation



CYNOPSISDIGITAL
01.24.17

Good morning. It’s Tuesday January 24, 2017 and this is your first early morning digital briefing.

TODAY’S CODEBREAKER
 

Extensibility: In software engineering and systems design, extensibility is a principle in which implementation takes future growth into account. For instance, an extensible software program might support plug-ins or add-ons that add new functionality.
 
 

TOP NEWS
 

Snapchat is taking steps to stamp out clickbait and fake news, according to a new report from The New York Times. The service has reportedly updated its guidelines for partners on Discover, its platform for publisher-controlled channels. For one, Snapchat has reportedly told publishers they can no longer post images that don’t have editorial or news value, or that bear little or no relation to the content they link to. (The Times’ report singles out a recent MTV post that appeared with a picture of a bikini-clad woman – despite the fact that the story was about a fully-clothed man.) Snapchat is also cracking down on links to questionable outside websites, telling publishers they have to fact-check all content. Finally, Snapchat said that it will roll out new tools next month that will make it easier for publishers to stop minors from seeing content. Snapchat parent Snap Inc. is expected to make its IPO this spring, possibly as early as March.
 
Yahoo may have a new problem on its hands. According to a new report from The Wall Street Journal, the SEC is looking into the massive data breaches that Yahoo revealed last year. According to the Journal, the SEC’s investigation is likely to focus on the 2014 breach that exposed the data of about 500 million users. (That breach was revealed in September. A second, earlier breach that compromised the data of over a billion users was revealed in December.) The SEC investigation is reportedly in its early stages, and it’s too soon to say whether it will end with any public action.
 
Despite the new headache and the uncertainty about whether Verizon may try to alter or scuttle its acquisition, Yahoo is expressing confidence. In releasing its Q4 earnings results, Yahoo said that it expects the Verizon deal to close in the second quarter of this year. “The company is working expeditiously to close the transaction as soon as practicable in Q2.” Notably, the company acknowledges that it originally expected the deal to close in Q1. On an up note, the company’s Q4 earnings weren’t half bad. The company brought in $960.1 million in revenue – down 5% year-over-year, but above Wall Street’s projection of $908 million.
 
Be grateful for the Bill of Rights. Chinese regulators just rolled out new controls limiting access to overseas websites. The country’s Ministry of Industry and Information Technology (George Orwell, eat your heart out) says that, over the next 14 months, it will start moving against Chinese companies that provide unauthorized internet connections. “Unless approved, all basic telecommunication companies and Internet access service providers are barred from setting up or renting special lines (including VPNs) to carry out cross-border operations,” said the Ministry in a statement.
 


A CYNOPSIS MESSAGE


HOW TO MONETIZE AROUND LIVE VIDEO

Live video has taken a quantum leap forward in the past year, with a foothold in gaming, sports and awards events, events delivered via live-streaming are attracting increasing ad dollars. If you’re a marketer or content producer planning for 2017 and beyond, you won’t want to miss our 1/31 webinar. Our speakers will share intel about which activations work best and how advertising can augment the business model.
 
No matter what stage of implementation you’re in, you won’t want to miss the webinar. Register today.



 

ADVERTISING
 

Time Inc.’s Viant announced that it has acquired Adelphic, a cross-device demand-side platform. “We know that in addition to premium content, advertisers are looking for more efficient buying processes for digital audiences,” said Time Inc. President and CEO Rich Battista in a statement. “With Adelphic’s proven self-service capabilities, Time Inc. and Viant will be able to deliver greater programmatic competencies and benefits to our partners.”
 
 

PROGRAMMING + CONTENT ACQUISITIONS
 

CYNOPSIS DIGITAL EXCLUSIVE: Multimedia production company The Workshop announced a new talent agreement with Dr. George James, a Philadelphia-based marriage counselor and family therapist. Under the agreement, The Workshop will produce and launch a new digital-exclusive series hosted by James. Called Tell Me About It!, The Workshop is describing the series as “a five-minute approach to self-help.”

 

Twitter spent much of last year inking live-streaming agreements with sports leagues and news providers; now it’s heading to the red carpet. Twitter has reached a deal with Dick Clark Productions to exclusively stream red-carpet arrivals at upcoming awards shows, April’s Academy of Country Music Awards, May’s Billboard Music Awards, and November’s American Music Awards. On top of that, Twitter will live-stream the 7th Annual Streamy Awards in partnership with both DCP and Tubefilter. The live-streams will include TV-style commercial ad packages, with Twitter and Dick Clark productions splitting the revenue. Advertisers will also be able to promote DCP-produced video clips for the red-carpet shows.
 
Scandal
is really building up a digital presence. First came the announcement that the ABC drama is launching a new in-universe web series. It seems it’s also getting a new recap aftershow hosted by CNN legal analyst Laura Coates. Called Scandal Superfan Recap: Gladiators Don’t Run, the series will run weekly on People/Entertainment Weekly Network, Time Inc.’s ad-supported streaming service. The show debuts at 11 PM ET this Thursday – one hour after Scandal’s season 6 premiere ends. Neither ABC nor Scandal creator Shonda Rhimes are technically affiliated with the new talk series, but they don’t seem to be complaining.
 
 

OTT + SVOD
 

It’s getting to be an old story: Netflix lets a licensing deal lapse, and Hulu scoops it up. Netflix’s content deal with indie film distributor Magnolia Pictures recently ended; now Hulu has reached a deal to become the exclusive post-theatrical streaming home of Magnolia’s future releases. The deal kicks in starting in the second half of 2017. The companies didn’t say exactly how long it the agreement will run.
 
 

RESEARCH

 
The ListenFirst Television Interest (TVI) Rating (TM) is a standardized measurement of the most buzzed-about TV programs on linear TV and streaming services. A complement to ListenFirst’s other syndicated data products (such as the ListenFirst Digital Audience Rating – TV), the metrics included in the rating capture organic actions that are largely unaffected by paid media. Programs that surface on the TVI leaderboards are the most hashtagged on Facebook, Twitter, Google+, and Tumblr, as well as most searched for onWikipedia (used as a proxy for organic search volume).
 
All Series (1/16/17 – 1/22/17)
 
[] 
Source: ListenFirst. The TVI Rating aggregates metrics that measure organically generated activity by fans of the TV show. The metric includes total volume of official hashtag mentions on Facebook,Twitter, Google+, and Tumblr, along with Wikipedia page views (as a proxy for organic search volume) for a show as a percentage of the total volume of the same activities for all shows.
 
OpenSlate Engagement Data for the
News & Politics vertical, based on the engagement metric for the week ending January 22.
Channel (Engagement) / Monthly Views / Total Subs / SlateScore
The Young Turks (9.7) / 106,037,834 / 3,193,785 / 766
The Alex Jones Channel (9.5) / 72,806,831 / 1,922,253 / 710
The Next News Network (9.3) / 59,177,835 / 414,261 / 619
DramaAlert (9.1) / 21,103,017 / 1,747,387 / 681
ABC News (9.0) / 119,257,455 / 2,314,152 / 686
RT (9.0) / 37,282,873 / 2,018,306 / 692
Mark Dice (9.0) / 30,732,799 / 854,495 / 675
CNN (8.9) / 87,682,911 / 1,758,408 / 644
Fox News (8.8) / 41,757,524 / 472,308 / 623
JustKiddingNews (8.7) / 45,624,756 / 1,628,835 / 683
Source: The Engagement metric is one of OpenSlate’s component scores, and is a measure of a producer’s ability to evoke meaningful interaction with their audience. It is calculated on a scale of 1-10 with higher being better. The OpenSlateEngagement score uses a subset of the data incorporated in the SlateScore to perform a set of unique calculations. It factors in views, comments, likes, and more.
 
 

TRIVIA
 

What does ‘HTML’ stand for? (Email trivia@cynopsis.com with your answer and be sure to include your name, company, city and state.)

 

Our Last Trivia Question: Amazon’s Sneaky Pete took a long-ish path to a full-series order. It made its full-series debut earlier this month. But what year did its pilot debut? Answer: 2015. Kudos to David Westberg-SAG-AFTRA Federal Credit Union/CA, Tom Moore-Kalt Productions/CA, Lorrie Shilling/CA, Dan Haberer-Creo Entertainment/CA, and Anjali Desai-Departure Films/NY
 


A CYNOPSIS MESSAGE


Celebrate the TV Award Winners on 2/7!

While enjoying dinner at the Edison Ballroom in NYC, celebrate the achievements of our industry over the past year during the presentation of the very first Cynopsis TV Awards, which salutes excellence in national television programming. Also, two special awards will be presented to honorees Linda Boff, CMO for GE and Bill Koenigsberg, President, CEO & Founder for Horizon Media, for their extraordinary contributions to the industry.

View finalists and register: www.cynopsistvawards.com.



 

DIGITAL SPOTLIGHT
 

Season 2 of Hulu drama series The Path makes its debut tomorrow. Check out the trailer here.

See you tomorrow,
David Teich
01.24.17

Roberta Caploe: Publisher @robertacaploe
Diane K Schwartz: Senior Vice President, Media Communications Group

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