Top News
* AT&T Inc. plans to launch a new over-the-top DIRECTV-branded product by the end of the year, bringing the number of its subscription video services to five, John Donovan CEO of AT&T Communications, said at a conference. Speaking at the MoffettNathanson Media & Communications Summit, Donovan said the new service will differ from its current OTT product DIRECTV Now in that it will be a more robust content offering.
* Apple Music service now has more than 50 million users via paid subscriptions and free trials, Apple Inc. CEO Tim Cook said in an interview on Bloomberg Television (US). The music service crossed 40 million subscribers in April.
* Facebook Inc. released a Community Standards Enforcement report containing data on its content policing efforts from October 2017 to March 2018. The report, which covers graphic violence, adult nudity and sexual activity, terrorist propaganda, hate speech, spam, and fake accounts, shows how much content Facebook users saw that are in violation of the company's standards, how much was removed and how much content was detected proactively through its own technology, ahead of user reports.
* The U.S. Department of Homeland Security will be employing a new strategy to tackle cybersecurity risks in the U.S., according to the 35-page report reviewed by Reuters prior to its public release. "The cyber threat landscape is shifting in real-time, and we have reached a historic turning point," DHS chief Kirstjen Nielsen said in a statement. "It is clear that our cyber adversaries can now threaten the very fabric of our republic itself." In the report, the department cited threats from a "growing set of sophisticated malicious actors who seek to exploit cyberspace."
Security
* The Trump administration has eliminated its top cyber policy adviser role, ousting a key position aimed at facilitating the government's overall approach to cybersecurity policy and digital warfare, Politico reports. The decision is part of an effort to "streamline authority" for top officials working on the National Security Council, according to an email sent to NSC staffers that Politico later obtained.
* The U.S. Department of Justice and the Federal Bureau of Investigation have launched a probe into Cambridge Analytica LLC, the data analytics company at the center of multiple inquiries into the mishandling of Facebook user data, The New York Times reports, citing a U.S. official and unnamed sources. As part of the investigation, the agencies are questioning former staffers and banks that handled the data firm's business.
Technology
* Microsoft Corp. unveiled a second version of the Surface Hub that features a 4K, 50.5-inch multi-touch display. According to an official blog post, the Surface Hub 2, which will go on sale in 2019, will be offered to select commercial customers for testing purposes this year.
TV Networks
* 21st Century Fox Inc. and its Fox News division settled racial and gender discrimination lawsuits with 18 former employees of the news channel, The Wall Street Journal reports. While terms of the settlement were not disclosed, a source with knowledge of the details said the cases were settled for nearly $10 million.
Internet & OTT
* ESPN (US) teamed up with Netflix Inc. to produce a documentary series about NBA star Michael Jordan and the 1990s Chicago Bulls championship teams, Multichannel News reports, citing the network's upfront presentation. Titled "The Last Dance," the 10-part series will feature the last of the team's six championships during the Jordan era.
* Twitter Inc. unveiled a new strategy to deal with "trolls" who violate the company's policies or distort the public conversation. In an official blog post, Twitter executives Del Harvey and David Gasca said the company's strategy now comprises new policies, human review processes and machine learning to identify and take action against accounts or limit their visibility.
* Facebook's WhatsApp introduced new features for groups on the messaging service. According to an official blog post, the new features include group description, admin controls, group catch up and participant search. WhatsApp also updated its terms of service and privacy policy for users in the European Union amid the implementation of the as the General Data Protection Regulation.
* Roku fixed an outage that barred users from streaming Netflix, Google Inc.'s YouTube and other channels, Variety reports, citing a company representative. The company spokesperson said the outage that lasted for several hours affected a small number of users.
Featured news
The Daily Dose Europe: Zuckerberg snubs UK testimony request; MTG completes Trace sale: Facebook CEO Mark Zuckerberg declined British lawmakers' request to be questioned over the Cambridge Analytica data scandal despite a summons threat, while Modern Times Group completed the sale of its 75% stake in Trace Partners SAS to TPG Growth.
The day ahead
Early morning futures indicators pointed to a mixed opening for the U.S. market.
In Asia, the Hang Seng fell 0.13% to 31,110.20, and the Nikkei 225 was down 0.44% to 22,717.23.
In Europe, as of midday, the FTSE 100 was up 0.13% to 7,732.64, and the Euronext 100 had fallen 0.09% to 1,070.51.
On the macro front
The MBA mortgage applications report, the Housing Starts report, the Industrial Production report, the Atlanta Fed's business inflation expectations survey and the EIA petroleum status report are due out today.
Featured research
Economics of Internet: State of Portuguese online video: Subscription: Portugal is one of the three markets with the lowest adoption rates of subscription online video services in Europe. The ratio of subscription video-on-demand subscribers to broadband homes is approximately 5%.
Economics of Internet: Profile: Facebook 2018: After vanquishing Myspace and swatting aside recent challenges from Snap Inc. and Twitter, Facebook has inexorably swelled its user base and ad revenues.
Broadcast Investor: Alpha Media default could lead to reorganization with lenders: Top 10 radio station group owner Alpha Media's default on its $285 million senior secured first-lien credit facility may lead to a debt reorganization plan.
Wireless Investor: Hong Kong mobile carriers rally for more spectrum: Hong Kong plans to go big with its mobile future, earmarking 4300.0 MHz worth of millimeter spectrum for 5G on top of its existing 582.0 MHz spectrum, but local operators still complain that this is not enough for 5G development.
Wireless Investor: Chilean incumbents move to 5G while 'Word Of Mouth' reaches more consumers: While Chilean mobile network operators look to expand their networks and explore 5G, bureaucracy will continue to hamper industry performance if not addressed through policies that promote healthy competition among large and smaller players.
Recent earnings
Vodafone's outgoing CEO: 'techlash' should be seen as an opportunity for telcos: Vodafone Group PLC's outgoing CEO, Vittorio Colao, said the recent backlash against technology companies, or "techlash," would serve as an "opportunity" for mobile operators as calls grow for more regulatory scrutiny of the big tech and social media giants.
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