FTI Consulting News Bytes – 5 July 2024

FTI Consulting News Bytes

While the eyes of the UK media have been firmly fixed on the General Election this week, there is still a wealth of intriguing international tech news to share with you in today’s newsletter. First up, in the latest development in the streaming wars, Fox has announced it will launch a free, ad-supported service in the UK called Tubi to rival Netflix and Disney. Staying in the world of media, a new player has entered the chat as noplace, a social media app targeted at Gen Z, climbs to No.1 on the App Store. Elsewhere, the EU has hit Chinese EV makers with new tariffs, while Amazon’s international arm looks set to report an operating profit. Finally, the UK payments sector has urged the new Government to hold tech giants accountable for reimbursing fraud victims. 

This week’s news

Fox to launch free streaming service Tubi in UK 

Rupert Murdoch’s Fox Group will launch a free streaming service in the UK to compete with Netflix and Disney in its first foray into Britain’s increasingly crowded market for ad-supported digital TV. The Financial Times reports that Fox will this week reveal plans to bring Tubi to the UK, a subscription-free but ad-funded platform that will have more than 20,000 movies and TV episodes at launch including Billy Elliott and Pacific Rim. Set to launch in the coming weeks, the move comes months after Murdoch’s existing TV service in the UK, TalkTV, closed its linear TV operations for a digital-only platform.

It’s noplace for Gen Z 

Watch out Elon, a new player has entered the social media marketplace. As reported by TechCrunch, noplace has surged to the top of the App Store as it launched out of invite-only mode Wednesday to the mass market. Pitched to Gen Z as putting the ‘social’ back in social media, the platform has been described as a mashup of Twitter and MySpace, a global group chat with customisable profiles and focused around text-based updates. In keeping with the times, the app uses AI instead of algorithms to drive suggestions and curation for users. According to its founder Tiffany Zhong, “having a global, public feed is what makes it so fun. It’s like everyone’s brain on paper.” Many start-ups have tried and failed to capture Gen Z’s imagination with alternatives to TikTok, Instagram and Twitter. Time will tell if noplace is just another pretender or the real deal. 

EU hits Chinese EVs with new tariffs

The European Union has raised tariffs on Chinese electric vehicles, as Brussels takes action to protect the bloc’s motor industry, BBC News reports. The new tariffs on individual manufacturers range from 17.4% to 37.6%, which is on top of a 10% duty that was already in place for all electric cars imported from China. This could raise the price of EVs across the EU, making them less affordable for European consumers. Analysts argue this marks a significant setback for Beijing, already embroiled in a trade war with Washington. The EU, China’s largest overseas market for EVs, is crucial for boosting its struggling economy with high-end products.

Amazon’s international unit on track to swing into annual profit

Amazon’s international unit looks set to report an operating profit of $1.6bn this year, rising to more than $5bn next, according to analysts in a recent Refinitiv poll, the Financial Times reports. The operating profit has come after Amazon reorganised its warehouses and delivery operations in key overseas markets, including Germany and the UK. The profits reflect Amazon chief executive, Andy Jassy’s, statements made in May that the overseas segment would “be a big, profitable business for us,” with the performance of “established” markets such as the UK and emerging ones such as Brazil improving. 

UK payments industry’s message to the new Government 

The UK payments industry has urged the new Labour Government to hold tech giants accountable for reimbursing fraud victims, aiming to change upcoming rules that place this burden on the financial sector. As per CityAM, The Payments Association, representing over 200 members, proposed a “tech levy” on social media firms to fund scam victim compensation. This recommendation is based on the “polluter pays” principle, ensuring Big Tech contributes fairly to addressing the high levels of authorised push payment (APP) fraud originating online. The appeal comes as banks, fintechs, and payment firms prepare for new regulations from the Payment Systems Regulator (PSR), effective from October 7, which will require them to refund APP fraud victims up to £415,000.

Top Tweets of the Week

• Bloomberg Technology: Amazon will partner with the Australian government for a cloud data system to handle top secret information, in a move that Canberra says will improve the nation’s cyber capabilities and deepen security ties with the US.
• Reuters Tech News: Fintech company Revolut swings to $553 mln profit.
• Amy Lewin, Editor, Sifted: NEW: European VC returns are better than North American VC returns over 10 and 15 year horizons, finds a new report from @InvestEuropeEU & Cambridge Associates.

Number of the Week

$3tn – Nvidia shares rally to lift chip maker’s valuation back over $3trn, following the biggest slump in the company’s stock since 2022 (The Times.)