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  • Town Meeting OKs budget, local option taxes in first night

    Town Meeting OKs budget, local option taxes in first night

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    MARBLEHEAD — Town Meeting approved local meals and rooms taxes in its opening night, but technological hiccups ultimately forced the meeting to pause after Article 26, leaving the back-half of the warrant for night two on Tuesday.

    A smattering of technical issues plagued the opening of Town Meeting, causing it to take more than an hour to move through procedural articles. Issues ranged from audio cutting out in the overflow chamber outside of the middle school’s auditorium and video projector issues that prevented the timely display of the articles being voted on. The issues were finally ironed out by about 8:40 p.m., nearly two hours in.

    The meeting also saw the successful launch and use of an electronic clicker system for vote tracking, which showed that Town Meeting opened with more than 800 people when a vote of 704 to 97 was tallied to close out Article 6. More than an hour later, a narrow, three-vote margin was tabulated in 20 seconds with no need for further verification or manual tallying.

    Dozens of Marblehead union employees lined the entrance to the auditorium at Veterans Middle School prior to the start of the meeting, calling for a restoration of prior cuts that took place to balance prior budgets.

    “There’s no more room to cut that budget,” said Jonathan Heller, co-chairperson of the Marblehead Education Association. “They’ve been able to bridge between a reduced budget and level-service budget. That’s what we’re hoping this town will approve tonight, to get us back to level budget at first.”

    The unions were quiet during the meeting, however, with a brief comment from Terri Tauro, president of the Marblehead Municipal Employees Union, on an indefinitely postponed article on the police contract. 

    “I’d like to start with a shout-out to our town employees,” Tauro said. “Marblehead’s town employees educate your children and keep them safe. We keep your power on, plow the snow, and care for your aging parents. 

    “For many of us, the wages we make working for the town are far less than what it would take to live in the town,” Tauro said. “It may soon be that our wages won’t cover living in this state. Massachusetts is, after all, the fourth most expensive state in this country to live.”

    The first articles to receive substantial debate were 24 and 25, two measures to add meals and lodging taxes, with each factoring in generating about $200,000 in revenue for the budget passed in Article 26. 

    Debate also focused on the reported 261 short-term rental units that exist and are presently untaxed in Marblehead, a group of property owners that one resident Monday night suggested would put the town’s only two hotels at a competitive disadvantage.

    Carolyn Pyburn, of Gilbert Heights Road, sought instead to lower the 6% proposed for the rooms tax down to 4%. That vote failed by a razor-thin margin of 391 to 394 — a result that arrived within 20 seconds with the new voting method.

    “This is another no-brainer,” said Albert Jordan, a Roosevelt Avenue resident, of the rooms tax. “There’s 351 communities in Massachusetts, and most of them are doing this.”

    Peter Conway, an Orchard Street resident, raised another issue with the tax: That many rooms are paid for in advance.

    “You can’t go back to the guests who’ve made a contract with you,” Conway said of hotels. “To be fair, that would have to be put off until at least the fall to give the businesses the chance to reach out to people.”

    Article 24, the meals tax, passed 515 to 294. The main vote for the rooms tax, after the failed amendment, was 469 to 345. The budget then passed 611 to 63 after a series of votes on individual departments and appropriations that reflected similar approval margins.

    The meeting was adjourned following the budget, leaving articles 27 through 53 for night two, Tuesday, beginning at 7 p.m.

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    By Dustin Luca | Staff Writer

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  • History Happenings: April 25, 2024

    History Happenings: April 25, 2024

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    A thousand kites to be given away. On this day in 1888, Boston Clothing Company’s front-page ad promised a splendid, large kite with every purchase of a boys suit, hat or pants in sizes 6 to 14. The usual price…

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  • Amazon’s New Video Ad Chief Is the Latest Former NBCUniversal Exec to Join Big Tech

    Amazon’s New Video Ad Chief Is the Latest Former NBCUniversal Exec to Join Big Tech

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    Krishan Bhatia is Amazon’s new global ad sales chief. Penske Media via Getty Images

    Amazon (AMZN) continues to build out its advertising team after making the move to introduce ads to Prime Video for basic subscriptions. The tech giant’s latest addition is Krishan Bhatia, a former ad sales executive at NBCUniversal, who left last September after 18 years with the media company. In the newly created role of VP of global video advertising sales, Bhatia will be leading Amazon Prime Video’s advertising sales and Amazon’s other streaming offerings, including Twitch and Freevee. 

    Bhatia is the latest in a string of former NBCUniversal executives who have joined tech companies that are making foray into the media business. Last month, Apple (AAPL) hired Joseph Cady, who previously served as head of advanced advertising and partnerships at NBCUniversal, to join its advertising team. Apple’s streaming service Apple TV+ still does not have an ad-supported subscription yet, but the hire suggested an ad tier could be in the works. Cady was the last person to hold his role at NBCUniversal. 

    Last year, Linda Yaccarino, the former NBCUniversal chair of global advertising, was hired by Elon Musk as CEO of X, formerly Twitter, as the tech billionaire looked for a media expert to turn around X’s slumping advertising business. Yaccarino’s impact has been difficult to assess because of Musk’s volatile relationship with X’s advertisers and his strong influence on key company decisions.    

    Outside of advertising, Netflix also recently brought on a former NBCUniversal executive. The streaming giant in February hired Jeff Gaspin, who served as chairman of NBC Universal Television Entertainment from 2009 to 2011, to lead its unscripted series division.

    Amazon has been making major ad hires from other media giants as well. In January the company brought on a former ad-tech chief from The Walt Disney Company, Jeremy Helfand, to lead global advertising at Prime Video.  

    In a letter to shareholders this week, Amazon CEO Andy Jassy boasted about Prime Video’s potential after implementing ads for the platform’s 200 million monthly viewers, saying it can become a large and profitable business in its own right. Jassy noted that “streaming TV advertising is growing quickly and off to a strong start.”

    Amazon’s advertising revenue grew 24 percent last year to $47 billion, which was driven mainly by sponsored ads. The e-commerce giant also spent almost $19 billion on content in 2023, an increase from $16.6 billion the year prior. 

    Amazon’s New Video Ad Chief Is the Latest Former NBCUniversal Exec to Join Big Tech

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    Nhari Djan

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  • New Hampshire donut censorship and the ‘speech police’: Local bakery sues over ruling that student-painted mural was advertising, not art

    New Hampshire donut censorship and the ‘speech police’: Local bakery sues over ruling that student-painted mural was advertising, not art

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    A New Hampshire town’s new ordinance that was pitched as “a path forward” for public artwork hasn’t resolved a bakery owner’s First Amendment dispute over a large pastry painting, and his lawyer predicts it will only lead to more litigation as town officials become “speech police.”

    Conway residents passed the ordinance by a vote of 1,277 to 423 during town elections Tuesday, part of a lengthy ballot for budget and spending items and picking government positions, such as selectboard, treasurer, and police commissioner.

    The vote came more than a year after the owner of Leavitt’s Country Bakery sued the town over a painting by high school students that’s displayed across his storefront, showing the sun shining over a mountain range made of sprinkle-covered chocolate and strawberry doughnuts, a blueberry muffin, a cinnamon roll and other pastries.

    The zoning board decided that the painting was not so much art as advertising, and so could not remain as is because of its size. At about 90 square feet (8.6 square meters), it’s four times bigger than the town’s sign code allows.

    The new ordinance requires applicants to meet criteria for art on public and commercial property. It says that while the zoning and planning boards must approve the appropriateness of theme, location, and design before the selectboard considers each proposal, the process should make “no intrusion into the artistic expression or the content of work.”

    “There’s no part of writing that where we try to limit any kind of speech,” Planning Board Chairperson Benjamin Colbath said at a March 28 meeting. “We did try to carefully write that and certainly took inspiration from what a lot of other communities are doing as well, as well as confirm with counsel on that one.”

    A lawyer for the bakery had urged voters to reject the ordinance.

    “Typically, people get to decide whether to speak or not; they don’t have to ask the government ‘pretty please’ first,” Robert Frommer wrote last week in the Conway Daily Sun.

    “All commercial property owners would have to get permission before putting up any sort of public art in town,” Frommer wrote, and town officials can “deny murals because of what they depict, or who put them up.”

    Sean Young, the bakery owner, said he was voting NO: “Local officials don’t get to play art critic.”

    Young sued after town officials told him the painting could stay if it showed actual mountains — instead of pastries suggesting mountains — or if the building wasn’t a bakery.

    Young’s lawsuit was paused last year as residents considered revising how the town defines signs, in a way that would have allowed the sign to stay up. But that measure was seen as too broad and complex, and it failed to pass.

    The mural remains in place for now, as his case heads to trial this November.

    Frommer told The Associated Press in an email that the town hasn’t said whether the new ordinance will impact Leavitt’s mural, “and if Sean wanted to paint a different mural with the high school students at any of his businesses, he would have to jump through the ordinance’s unconstitutional hoops.”

    The town’s attorney didn’t immediately respond to an emailed request for comment on Wednesday.

    When Colbath discussed the ordinance at last month’s meeting, he painted it as a way to facilitate more public art in town.

    “There was a hole in our ordinance and I wanted to try to make it clear and an easier path forward for community art,” he said.

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    Kathy McCormack, The Associated Press

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  • It’s OK to ask for help: A look at local Community Behavioral Health Centers

    It’s OK to ask for help: A look at local Community Behavioral Health Centers

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    Whether you’re a student juggling too many deadlines and competing commitments on campus or a police officer struggling with a seemingly no-win situation on the job — or some other level of crisis — there are dedicated places and people you can lean on in your own backyard.

    Throughout the region, behavioral health services operate around the clock as a vital area of support for those in need of help. Many are partnered with community crisis stabilization programs that accept insurance and provide a bed, individual and group therapy, and a life-changing serving of hope to anyone placing an order.

    These services have expanded greatly with the state’s launch of a “Community Behavioral Health Center” system in early 2023. The system, which can be found at tinyurl.com/3s59jpsp, is rapidly expanding with increased awareness and demand.

    “The main reason the state did this redesign from the former service programs to CBHC’s was because, well… the two main reasons were that there was an increase in boarding times, and hospital systems and hospital ERs were flooded with folks walking in for services who may not necessarily need to access the intensity of the emergency room,” said Josh Eigen, CBHC director at Eliot Community Behavioral Health, at 75 Sylvan St. in Danvers and 95 Pleasant St. in Lynn. “And folks were just waiting for placement, so CBHCs were created as an option for folks to get all of their care in the community.”

    People from all walks of life are now walking into such facilities and getting rapid access to care, and coming out well on their way toward a new lease on life.

    “One of the things the pandemic did which was good was that it did bring up conversations,” said Kristen Godin, market president for Northeast Health Services, at 199 Rosewood Drive in Danvers. “We weren’t able to use telehealth before. There was a very select number of players that would allow for telehealth, and that opened the door.

    “That, in and of itself, is a huge access point. Folks who are extremely busy — they work, bring their kids to soccer, are on the PTA, all the things they had to do in their offices — are things they weren’t able to do.”

    Reaching everyone, especially the young

    Walk into a CBHC and you enter a community of hope. Some have message boards for clients to leave notes for those entering. Others have comfy recliners for clients to relax in their lobbies as a hum of human activity comes and goes.

    “As a mental health agency, we’re providers of hope,” Godin said. “We have a hope board, so anybody can write on that board about what they’re experience has been to another person walking by who might have just started their first appointment, or is trying to decide… do I want medication? Do I want TMS services?

    “There was a young woman recently who wrote on our board, ‘I’ve been struggling with mental health for years, tried medication, been in therapy, nothing worked. I tried Spravato, and I have my life back,’” Godin continued. “For me, beyond anything else, that’s what we do this for. That’s why we’re opening 10 clinics, 10 more after that, and expanding further.”

    With CBHCs launching last January, data is now starting to show trends of their impact, Eigen explained.

    “Some of the data is showing that folks are able to access care more immediately,” he said. “It’s opening up other options for folks other than needing to go on waitlists or in the emergency room. … The data we’ve seen so far is showing people are progressing in the treatment we’re offering. We’ve been able to continue for over a year now with not having waitlists, so it’s definitely heading in the right direction.”

    But there’s still work to do to reach some subsets of the population. That includes youth and young adults heading to college, where many factors could collide and cause a drastic drop in mental health that shocks those back home — especially if it isn’t addressed before it’s too late.

    “There has to be an opportunity that mental health is brought up on every college campus, every high school, every elementary school,” Godin said. “At college campuses, the other thing we talk about is substance abuse. If we’re talking about college, there has to be an opportunity if there’s a moment on a Saturday at 4 a.m., where they’re like, ‘who do I call?’”

    Godin recalled going to college and seeing conversations around substance abuse, but not much more.

    “There was never a discussion on counseling, therapy, asking for help,” she said. “There needs to be more of that, posted in all of the guidance counselor’s offices.”

    Vicarious trauma, on the job or at home

    Then there are the others impacted by mental health as part of day-to-day life, more specifically work.

    Say you’re a police officer who witnessed a person dying by suicide, a firefighter helping a badly burned victim out of an engulfed building, or a doctor losing a patient. Vicarious trauma represents the harmful moments experienced by people as part of their daily lives — especially careers.

    It’s also something that affects those answering the phone at crisis centers. But vicarious trauma also goes deeper and can be further experienced by anyone at home, no matter their line of work or level of mental health awareness, according to Godin.

    “No one ever remembers that we’re humans,” she said. “Vicarious trauma is a real thing, and it can happen to the person answering a phone, can happen to me listening to a story, anyone watching a show or listening to the news. One of the things we try to do here at Northeast Health Services is our culture of self-care.

    “All our clinicians are licensed. I’m licensed as a clinician, and my supervisor as a chief operating officer is licensed as a clinician,” Godin continued. “If there’s a debrief that needs to happen that’s critical to make sure folks are okay, self-care regimens, boundaries… we have an EAP program for folks. If they need that, they can call it and get eight appointments right away.”

    Over at Eliot, “our staff have access to regular supervision and support,” Eigen said. “They have regular supervision with supervisors and managers, myself. Some of our teams also have group support where they’re meeting with other clinical directors to talk about tough calls or tough assessments, tough clients that they’re working with.

    “There’s so much trauma that the people we serve have been through,” he continued. “So it’s important and definitely a priority where we provide that kind of support.”

    For more information on CBHCs or to find one nearest you, visit tinyurl.com/3s59jpsp.

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    By Dustin Luca | Staff Writer

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  • The Incognito Mode Myth Has Fully Unraveled

    The Incognito Mode Myth Has Fully Unraveled

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    If you still hold any notion that Google Chrome’s “Incognito mode” is a good way to protect your privacy online, now’s a good time to stop.

    Google has agreed to delete “billions of data records” the company collected while users browsed the web using Incognito mode, according to documents filed in federal court in San Francisco on Monday. The agreement, part of a settlement in a class action lawsuit filed in 2020, caps off years of disclosures about Google’s practices that shed light on how much data the tech giant siphons from its users—even when they’re in private-browsing mode.

    Under the terms of the settlement, Google must further update the Incognito mode “splash page” that appears anytime you open an Incognito mode Chrome window after previously updating it in January. The Incognito splash page will explicitly state that Google collects data from third-party websites “regardless of which browsing or browser mode you use,” and stipulate that “third-party sites and apps that integrate our services may still share information with Google,” among other changes. Details about Google’s private-browsing data collection must also appear in the company’s privacy policy.

    Additionally, some of the data that Google previously collected on Incognito users will be deleted. This includes “private-browsing data” that is “older than nine months” from the date that Google signed the term sheet of the settlement last December, as well as private-browsing data collected throughout December 2023. Certain documents in the case referring to Google’s data collection methods remain sealed, however, making it difficult to assess how thorough the deletion process will be.

    Google spokesperson Jose Castaneda says in a statement that the company “is happy to delete old technical data that was never associated with an individual and was never used for any form of personalization.” Castaneda also noted that the company will now pay “zero” dollars as part of the settlement after earlier facing a $5 billion penalty.

    Other steps Google must take will include continuing to “block third-party cookies within Incognito mode for five years,” partially redacting IP addresses to prevent re-identification of anonymized user data, and removing certain header information that can currently be used to identify users with Incognito mode active.

    The data-deletion portion of the settlement agreement follows preemptive changes to Google’s Incognito mode data collection and the ways it describes what Incognito mode does. For nearly four years, Google has been phasing out third-party cookies, which the company says it plans to completely block by the end of 2024. Google also updated Chrome’s Incognito mode “splash page” in January with weaker language to signify that using Incognito is not “private,” but merely “more private” than not using it.

    The settlement’s relief is strictly “injunctive,” meaning its central purpose is to put an end to Google activities that the plaintiffs claim are unlawful. The settlement does not rule out any future claims—The Wall Street Journal reports that the plaintiffs’ attorneys had filed at least 50 such lawsuits in California on Monday—though the plaintiffs note that monetary relief in privacy cases is far more difficult to obtain. The important thing, the plaintiffs’ lawyers argue, is effecting changes at Google now that will provide the greatest, immediate benefit to the largest number of users.

    Critics of Incognito, a staple of the Chrome browser since 2008, say that, at best, the protections it offers fall flat in the face of the sophisticated commercial surveillance bearing down on most users today; at worst, they say, the feature fills people with a false sense of security, helping companies like Google passively monitor millions of users who’ve been duped into thinking they’re browsing alone.

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    Dell Cameron, Andrew Couts

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  • Some of the Most Popular Websites Share Your Data With Over 1,500 Companies

    Some of the Most Popular Websites Share Your Data With Over 1,500 Companies

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    Everywhere you go online, you’re being tracked. Almost every time you visit a website, trackers gather data about your browsing and funnel it back into targeted advertising systems, which build up detailed profiles about your interests and make big profits in the process. In some places, you’re tracked more than others.

    In a little-noticed change at the end of last year, thousands of websites started being more transparent about how many companies your data is being shared with. In November, those infuriating cookie pop-ups—which ask your permission to collect and share data—began sharing how many advertising “partners” each website is working with, giving a further glimpse of the sprawling advertising ecosystem. For many sites, it’s not pretty.

    A WIRED analysis of the top 10,000 most popular websites shows dozens of sites say they are sharing data with more than 1,000 companies, while thousands of other websites are sharing data with hundreds of firms. Quiz and puzzle website JetPunk tops the pile, listing 1,809 “partners” that may collect personal information, including “browsing behavior or unique IDs.”

    More than 20 websites from publisher Dotdash Meredith—including investopedia.com, people.com, and allrecipes.com—all say they can share data with 1,609 partners. The newspaper The Daily Mail lists 1,207 partners, while internet speed monitoring firm Speedtest.net, online medical publisher WebMD, and media outlets Reuters, ESPN, and BuzzFeed all state they can share data with 809 companies. (WIRED, for context, lists 164 partners). These hundreds of advertising partners include dozens of firms most people have likely never heard of.

    “You can always assume all of them are first going to try and disambiguate who you are,” says Midas Nouwens, an associate professor at Aarhus University in Denmark, who has previously built tools to automatically opt-out of tracking by cookie pop-ups and helped with the website analysis. The data collected can vary by website, and the cookie pop-ups allow some control over what can be gathered; however, the information can include IP addresses, fingerprinting of devices, and various identifiers. “Once they know that, they might add you to different data sets, or use it for enrichment later when you go to a different site,” Nouwens says.

    The online advertising world is a messy, murky space, which can involve networks of companies building profiles of people with the aim of showing you tailored ads the second you open a webpage. For years, strong privacy laws in Europe, such as GDPR, have resulted in websites showing cookie consent pop-ups that ask for permission to store cookies that collect data on your device. In recent years, studies have shown cookie pop-ups have included dark patterns, disregarded people’s choices, and are ignored by people. “Every single person we’ve ever observed in user testing doesn’t read any of this. They find the fastest way they can to close it out,” says Peter Dolanjski, a product director at privacy focused search engine and browser DuckDuckGo. “So they end up in a worse privacy state.”

    For the website analysis, Nouwens scraped the 10,000 most popular websites and analyzed whether the collected pop-ups mentioned partners and, if so, the number they disclosed. WIRED manually verified all the websites mentioned in this story, visiting each to confirm the number of partners they displayed. We looked at the highest total number of partners within the whole dataset, and the highest number of partners for the top 1,000 most popular websites. The process, which is only a snapshot of how websites share data, provides one view of the complex ecosystem. The results can vary depending on where in the world someone visits a website from.

    It also only includes websites using just one system to display cookie pop-ups. Many of the world’s biggest websites—think Google, Facebook, and TikTok—use their own cookie pop-ups. However, thousands of websites, including publishers and retailers, use third-party technology, made by consent management platforms (CMPs), to show the pop-ups. These pop-ups largely follow standards from the marketing and advertising group IAB Europe, which details the information that should be included in the cookie pop-ups.

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    Matt Burgess

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  • Trooh Media’s Digital Network Exceeds 1,000 Colleges With Acquisition of CheddarU’s Digital Screens

    Trooh Media’s Digital Network Exceeds 1,000 Colleges With Acquisition of CheddarU’s Digital Screens

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    Press Release


    Feb 27, 2024 16:00 EST

    Trooh Media, a leading digital out-of-home media company, is thrilled to announce its acquisition of CheddarU’s large format digital screens on college campuses across the U.S. 

    With the acquisition of CheddarU’s digital screens, Trooh Media gains exclusive access to over 900 screens across 325 college campuses across the U.S. “This acquisition is a nice complement to our existing network of schools and gives Trooh access to new campuses across the country,” said Kennedy Turner, VP Client Partnerships of Trooh. Continues Turner, “Our digital out-of-home screens provide campuses with a valuable communication tool in which to speak to their students and offers marketers a unique opportunity to connect with 18-24 college students digitally through a full-service ad tech platform.”

    Trooh’s network of large format, dynamic digital screens, which will now be available in over 1,000 U.S. colleges, offers brand-safe, relevant engaging content that is important to both students and marketers. Trooh screens are located within non-academic areas of campuses. “This acquisition marks an exciting chapter in our growth story and solidifies our strong foundation in providing brands with an exceptional reach of A18-24s at scale in the real world,” said Alison Jacobs, CRO of Trooh.

    About Trooh 

    Trooh is a leading, large-format digital out-of-home company reaching millions of consumers in the USA on their daily journey out-of-home. Trooh’s extensive digital video, audio-enabled, premium screens are positioned in high dwell time and defined audience locations across the U.S.  

    Source: Trooh Media

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  • Martin Scorsese’s Squarespace Super Bowl Ad Wants You to Put Down Your Phone

    Martin Scorsese’s Squarespace Super Bowl Ad Wants You to Put Down Your Phone

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    Even on Zoom, Martin Scorsese knows how to frame the shot. Ostensibly he’s dialed in to talk about his new Super Bowl ad for Squarespace, but as he’s settling in, he adjusts the iPad he’s calling from to make sure his face is framed perfectly by the bookshelves behind him.

    It’s not so much vanity as a desire to take digital communication seriously. Scorsese’s Super Bowl spot is a punchy, humorous riff about what would happen if extraterrestrials came to Earth and couldn’t get humanity’s attention because everyone is lost in their phones. It’s funny, but also something Scorsese thinks about. At 81, he says, he remembers the transition from radio to television to film and puts a lot of thought into how people from every generation consume visual media.

    Including, now, on TikTok. Late last year, the legendary filmmaker—who recently received his 10th Best Director Oscar nomination, for Killers of the Flower Moon—went viral when his daughter Francesca Scorsese started posted a video of her dad on the video-sharing app learning slang. He says he may never be good at storytelling on TikTok, but a 30-second spot? That he can do.

    WIRED talked to Scorsese about his Squarespace ad, the rise of artificial intelligence in filmmaking, and whether or not he’ll be getting a Vision Pro.

    This interview has been edited for length and clarity.

    Angela Watercutter: Shall we dive right in?

    Martin Scorsese: I guess so. I’ll do my best. [Laughs]

    I saw the behind-the-scenes you did with Francesca the other day. How is it working with your daughter as a collaborator?

    Well, it’s just an extension of the two of us and how we normally behave. So for me it’s very grounding. There’s no judgment, or there’s no direction in any sense. It’s really playing off each other. It seems to flow very naturally with her.

    You’re both very funny.

    I think she has a wonderful sense of humor, and she’s a very good actor. Some, it’s not acting, you know, it’s just simply being. Simply is not easy. But that’s the key.

    Does this mean we’re gonna get some more TikToks soon? I know the internet has been anticipating them.

    We would like to post a few more. Right now it’s a little busy. If she comes up with an interesting idea during the nature of the work itself, where we’re doing interviews and we’re going places to do an event or whatever, that adds an energy to it. It makes it even more natural. In a way, it’s disarming, because we have no choice. We have to get this done and it’s like, “Let’s go do it,” rather than “Don’t bother me. Get away from me with that iPhone.” I like the iPhone, I’m just saying keep it away from me.

    Ha! Right. I know what you mean.

    I don’t know what winds up on the internet. I was not aware that it would be posted. However, it’s all right.



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    Angela Watercutter

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  • Divided panel calls for shift away from natural gas

    Divided panel calls for shift away from natural gas

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    BOSTON — A divided state commission is calling for more aggressive steps to shift Massachusetts away from its reliance on natural gas for energy, but it’s not clear if state lawmakers will take up any of the proposed changes.

    In a report to the state Legislature, the Gas System Enhancement Working Group takes more steps to shift the state’s utilities away from installing gas infrastructure in the state. In some cases, the changes include only those to one or two words in the state laws on fixing gas leaks.

    But the panel, which included state regulators, environmental groups, labor leaders and representatives of utility companies, was unable to reach a consensus on many of the proposed regulatory changes.

    One proposal called for a shift from “replacement” to “repair” of leak-prone natural gas lines, which proponents argued would save ratepayers money and accelerate the state’s transition from fossil fuels to wind, solar and other renewable energy. But the utility panelists voted against in opposition, arguing that it would compromise safety and exceed the working group’s mandate.

    “A shift in policy that prioritizes repair over replacement does not reduce the risk that leak-prone pipes pose to people, property, and the environment,” they wrote in a summary of the report. “Both cast iron and cathodically unprotected steel will continue to pose concerns as they age.”

    The panel was created under a 2014 state law that requires utilities to track and grade all gas leaks on a scale of 1 to 3, with 1 being most serious, and immediately repair the most hazardous.

    The panel’s report noted that Massachusetts gas companies are spending more than $800 million a year installing new gas mains to replace aging leak-prone pipes. The new pipes have a lifespan of 50 years and will be paid for by energy consumers in the form of higher rates, they noted.

    But the report’s authors said estimates suggest utilities will spend $34 billion on new gas infrastructure, which would not be fully paid for until 2097. They noted that as more properties are retrofitted with heat pumps to replace gas, fewer customers will be on the gas distribution system.

    “However, that gas system will still have the same number of miles of pipe, with the same fixed maintenance costs,” Audrey Schulman, a panelist and director of the Home Energy Efficiency Team, a Cambridge nonprofit, wrote in a summary of the report. “These maintenance costs will be shouldered by fewer and fewer gas customers, making the customers overall gas bills increase.”

    Schulman said the state is “wasting money and time now by installing long-lived combustion infrastructure, while knowing that combustion is going away.”

    “Instead we are investing significantly and actively in the gas and electric system at the same time, without thinking through how to synergize the work to reduce the cost and increase the speed,” she wrote.

    “It is as though we are taking out a mortgage to replace the foundation on our horse’s stable, even after we’ve ordered an electric car,” Schulman added.

    Massachusetts utilities are under increasing pressure to employ alternatives to natural gas to comply with requirements of a climate change bill approved last year that requires the state to reduce its emissions to “net-zero” of 1990 levels by 2050.

    Meanwhile, environmental groups have been prodding the state to force utilities to move away from new natural gas infrastructure as the state seeks to diversify its energy portfolio to include solar, wind and other renewable sources of power.

    But industry officials argue the state will continue to need natural gas for a large portion of its energy, even as it turns to more renewable sources.

    Roughly half of New England’s energy comes from natural gas, according to ISO New England, which oversees the regional power grid.

    Critics have also noted the pocketbook costs to consumers from replacing natural gas infrastructure in homes and businesses.

    Christian M. Wade covers the Massachusetts Statehouse for North of Boston Media Group’s newspapers and websites. Email him at cwade@cnhinews.com.

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    By Christian M. Wade | Statehouse Reporter

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  • Stock investors fear ‘no-landing’ economy could spell trouble. What’s next?.

    Stock investors fear ‘no-landing’ economy could spell trouble. What’s next?.

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    While the U.S. stock market has been pricing in a “soft-landing” scenario for the economy, a blowout January jobs report, relatively strong corporate earnings, and Federal Reserve Jerome Powell’s comments during the past week could point to the possibility of “no landing,” where the economy is resilient while inflation stays on target.  

    Such a scenario could still be positive for U.S. stocks, as long as inflation remains steady, according to Richard Flax, chief investment officer at Moneyfarm. However, if inflation reaccelerates, the Fed may be hesitant to cut its policy interest rate much, which could spell trouble, Flax said in a call. 

    What the past week tells us

    Investors have just gone through the busiest week so far this year for economic data and corporate earnings reports, with stocks ending at or near their record highs.

    The Dow Jones Industrial Average
    DJIA
    finished the week with its nineth record close of 2024, according to Dow Jones Market Data. The S&P 500 index
    SPX
    scored its seventh record close this year on Friday, while the Nasdaq Composite
    COMP
    is about 2.7% lower from its peak.

    The Fed kept its policy interest rate unchanged in the range of 5.25% to 5.5% at its Wednesday meeting, as expected. However, in the subsequent press conference, Fed Chair Jerome Powell threw cold water on market expectations that the central bank may start cutting its key interest rate in March, and underscored that they want “greater confidence” in disinflation. 

    Roger Ferguson, former Fed vice chairman, said Powell introduced “a new kind of risk, the risk of no landing.” 

    In that scenario, inflation will stop falling, while the economy is strong, Ferguson said in an interview with CNBC on Thursday. However, Ferguson said he doesn’t think it is the likely outcome.   

    Traders were pricing in a 20.5% likelihood on Friday that the Fed will cut its interest rates in its March meeting, according to the CME FedWatch tool and that’s down from over 46% chance a week ago. The likelihood that the Fed will kick off its rate cutting program in May stood at 58.6% on Friday.  

    The stronger-than-expected January jobs data released on Friday further eliminates the chance of a rate cut in March, said Flax. 

    The U.S. economy added a whopping 353,000 new jobs in January while economists polled by The Wall Street Journal had forecast a 185,000 increase in new jobs. Hourly wages rose a sharp 0.6% in January, the biggest increase in almost two years.

    The past week has also been heavy with earnings reports, as several tech giants including Microsoft
    MSFT,
    +1.84%
    ,
    Apple
    AAPL,
    -0.54%
    ,
    Meta
    META,
    +20.32%
    ,
    and Amazon
    AMZN,
    +7.87%

    reported their financial results for the fourth quarter of 2023. 

    Among the 220 S&P 500 companies that have reported their earnings so far, 68% have beaten estimates, with their earnings exceeding the expectation by a median of 7%, analysts at Fundstrat wrote in a Friday note.  

    While the reported earnings by big tech companies have been “okay,” the guidance was not, said José Torres, senior economist at Interactive Brokers.

    What has been driving the tech stocks’ rally since last year was mostly the prospect of sales from artificial intelligence products, but tech companies are not able to monetize the trend yet, Torres said in a phone interview. 

    Adding to the headwinds is a comeback of concerns around regional banks. 

    On Thursday, New York Community Bancorp Inc.’s stock triggered the steepest drop in regional-bank stocks since the collapse of Silicon Valley Bank in March 2023. New York Community Bancorp on Wednesday posted a surprise loss and signaled challenges in the commercial real estate sector with troubled loans.

    Meanwhile, the Fed’s bank term funding program, which was launched in March last year to bolster the capacity of the banking system, will expire on March 11. 

    If the Fed could start cutting its key interest rate in March, it would be “sort of like the ambulance that was going to pick regional banks up and save them,” said Torres. “Now the ambulance is coming in May at the earliest, I think that we’re in a particularly risky period from now to May,” Torres said. 

    What should investors do 

    Investors should go risk-off before May, according to Torres. “Last year, goods and commodities helped a lot on the disinflationary front. This year for disinflation to continue, we’re going to need services to start contributing to that. Then we’re going to need to see an increase in the unemployment rate,” Torres said. 

    He said he prefers U.S. Treasurys with a tenor of four years or shorter, as the long-dated ones may be susceptible to risks around the fiscal deficit and government borrowing. For stocks, he prefers the healthcare, utilities, consumer staples and energy sectors, he said. 

    Keith Buchanan, senior portfolio manager at Globalt Investments, is more optimistic. The slowdown in inflation and the relatively strong economic data and earnings “don’t really paint a picture for a risk-off scenario,” he said. “The setup for risk assets still leans towards the bullish expectation,” Buchanan added. 

    In the week ahead, investors will be watching the ISM services sector data on Monday, the U.S. trade deficit on Wednesday and weekly initial jobless benefit claims numbers on Thursday. Several Fed officials will speak as well, potentially providing more clues on the possible trajectory of rate cuts.

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  • Mark Zuckerberg could pay millions to the IRS on Meta dividends. He still might be getting ‘a major break’.

    Mark Zuckerberg could pay millions to the IRS on Meta dividends. He still might be getting ‘a major break’.

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    Mark Zuckerberg delighted Meta shareholders and Wall Street this week with news of the social media giant’s first-ever dividend.

    The IRS may also be happy, now that it’s staring at millions in taxes on the Meta stock dividends bound for Zuckerberg’s portfolio.

    Zuckerberg, the CEO of Meta Platforms Inc.
    META,
    +20.32%
    ,
    is poised to make $700 million in dividends yearly. He owns nearly 350 million shares, according to FactSet, and the company will start paying a quarterly dividend of 50 cents a share.

    That would yield nearly $167 million in federal taxes yearly, after a qualified-dividend tax of 20% and another 3.8% tax on the investment returns of rich households, two accounting experts said.

    California income taxes of 13.3% on the dividends could cost Zuckerberg another $93.1 million, said Andrew Belnap, an accounting professor at the University of Texas at Austin’s McCombs School of Business.

    All in, that’s a combined $259.7 million in federal and state taxes annually on the Meta dividends, Belnap estimated.

    For context, U.S. taxpayers reported over $285 billion in qualified-dividend income to the IRS though mid-November 2023, according to agency statistics. Nearly 30 million tax returns reported qualified dividends through that time.

    Meta said it plans a quarterly cash dividend going forward, with the first such payment in March.

    Meta shares soared 20.5% on Friday, ending with a record-high close of $474.99. The Dow Jones Industrial Average
    DJIA,
    S&P 500
    SPX
    and Nasdaq Composite
    COMP
    all closed higher Friday.

    ‘Zuck is getting a major break’

    Meta announced the dividend payment in its earnings results Thursday, on the same week that Americans began filing their income taxes.

    A look at Zuckerberg’s dividends and their tax implications offer a peek at the debate about the varying ways wages and wealth are taxed.

    “Zuck is getting a major break,” said Andrew Schmidt, an accounting professor at North Carolina State University’s Poole School of Management who also crunched the numbers for MarketWatch.

    Approximately $167 million “seems like a high tax bill,” he said. But if Zuckerberg received the $700 million as a straight salary, Schmidt estimated he’d be looking at a roughly $259 million tax bill on the wages after they were taxed at the top marginal rate of 37%.

    Federal income tax brackets run from 10% to 37%.

    Meanwhile, the IRS taxes qualified dividends and capital gains at 0%, 15% and 20%, depending on income and household status. The net investment income tax adds another 3.8% for individuals making at least $200,000 or married couples worth $250,000.

    For federal and state taxes on the Meta dividends, Zuckerberg would face a combined rate of 37.1%, Belnap noted. “His tax rate on this is actually fairly high,” he said.

    The gap in tax rates on income derived from wages and investments “has been a big criticism with U.S. tax policy,” Schmidt said, especially as lawmakers look for ways to come up with more tax revenue.

    Regular retail investors enjoy the same preferential rates on capital gains and dividends as the top 1% of taxpayers, Schmidt added. The issue is that those dividends and stock profits are a smaller part of their income while salaries, taxed at higher rates, are a bigger proportion.

    Belnap noted that California’s state tax rules don’t provide special treatment to dividends.

    Read also: Where Trump, Biden and Haley stand on capital gains, the child tax credit and other key tax questions

    Zuckerberg received a $1 base salary in 2022, a figure that hasn’t changed in several years. He is now worth $142 billion, according to the Bloomberg Billionaires Index, making him the fifth-richest person in the world.

    Meta did not immediately respond to a request for comment.

    Taxes on the Meta dividends will not be something Zuckerberg, or any Meta shareholders big or small, need to deal with until next year’s tax season, Belnap and Schmidt observed.

    But as taxpayers amass their 1099-DIV forms on dividend income, IRS figures show that it’s mostly upper-echelon taxpayers reaping the rewards on the preferential rates for qualified dividends.

    Households worth at least $1 million accounted for 40% of the approximate $285.3 billion in qualified dividends reported through mid-November, according to agency figures.

    For less affluent investors, “it’s usually a nice supplement, but I’d say very few people are living off dividends,” Belnap said.

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  • Meta’s stock is the most overbought in 11 years, but that could be a good thing

    Meta’s stock is the most overbought in 11 years, but that could be a good thing

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    There’s a common belief that “overbought” is a technical condition for a stock, but in practice it seems to be more of an ability.

    Meta Platforms Inc.’s stock
    META,
    +20.32%

    soared so much Friday after a blowout earnings report, that some technical readings have reached levels not seen in 11 years.

    The stock rocketed 20.9% to close at a record $474.99, to book the third-biggest gain since going public in May 2012. The only bigger rallies were 23.3% on Feb. 2, 2023 and 29.6% on July 25, 2013, which were also after earnings reports.

    The stock’s Relative Strength Index, which is a momentum indicator that measures the magnitudes of recent gains and losses, climbed to 86.48. That’s the highest level seen since it closed at a record 89.39 on July 30, 2013.

    But that shouldn’t scare off Meta bulls.

    Many chart watchers believe RSI readings above 70 are signs of “overbought” conditions, which suggests bulls need a breather after running faster and farther than they are used to.

    There are also many who believe the ability to become overbought is a sign of underlying strength, since a stock tends to be trending higher when RSI hurdles 70. (Read Constance Brown’s “Technical Analysis for the Trading Professional.”)

    For example, the record RSI reading came three days after the record stock-price rally of 29.6% on July 25, 2013. Even though RSI closed at what was then a record of 88.27 after a record price gain on the 25th, the stock continued to rally and become even more overbought.

    It was that spike that snapped the stock out of the year-long doldrum that followed the initial public offering, and flipped the long-term narrative on the stock to bullish. (Read “Facebook’s ‘breakaway gap’ is a bullish game changer,” from The Wall Street Journal.)


    FactSet, MarketWatch

    And while the record RSI readings in July 2013 did lead to a minor short-term pullback, it didn’t stop the stock from embarking on a long-term uptrend, in which RSI made multiple forays above 70.


    FactSet, MarketWatch

    And the last time RSI closed above 85 was Feb. 2, 2023, when it closed at 86.07, also after a blowout earnings report.

    And similar to 10 years earlier, that historically high overbought reading helped launch another long-term rally.


    FactSet, MarketWatch

    So yes, Meta’s stock is now facing historically high overbought conditions. But as many chart watchers like to say, overbought doesn’t mean over.

    One thing to consider, however, is that the two prior times RSI spiked above 85 were while the long-term fates of the stock were still in question — the stocks were working on short-term bounces following long-term downtrends.


    FactSet, MarketWatch

    But Friday’s blast off happened just days after the stock closed at a record high. There was no resistance to hurdle, so rather than a bullish “breakaway gap,” Friday’s jump could be considered more a bullish leap of faith.

    Also read:

    Meta’s killer stock rally could add $200 billion in market cap — a historic haul.

    Nvidia’s stock could rise above $600 — despite signs it’s already overbought.

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  • Alphabet’s stock dips because advertising was good, but not good enough

    Alphabet’s stock dips because advertising was good, but not good enough

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    Google parent Alphabet Inc.’s stock was tumbling late Tuesday, as a rebound in digital advertising fell short of analysts’ lofty expectations.

    The search-engine powerhouse reported a jump in fourth-quarter sales, chiefly through advertising, but Alphabet’s shares
    GOOGL,
    -1.34%

    GOOG,
    -1.16%

    fell 4% in after-hours trading.

    Total revenue was $86.3 billion, up 13% from $76 billion a year ago. Sales minus total acquisition costs (TAC) came in at $72.3 billion, compared with $63.1 billion a year ago.

    Alphabet reported fourth-quarter net income of $20.7 billion, or $1.64 a share, compared with net income of $13.6 billion, or $1.05 a share, in the year-ago quarter.

    “We are pleased with the ongoing strength in Search and the growing contribution from YouTube and Cloud. Each of these is already benefiting from our AI investments and innovation. As we enter the Gemini era, the best is yet to come,” Alphabet Chief Executive Sundar Pichai said in a statement announcing the results.

    Analysts surveyed by FactSet had expected on average net earnings of $1.59 a share on revenue of $85.3 billion and ex-TAC revenue of $71.2 billion.

    Google’s total advertising sales climbed to $65.5 billion from $59 billion a year ago, edging analysts’ average expectations of $65.8 billion. YouTube ad sales rose to $9.2 billion from $7.96 billion a year. Google Cloud rang up $9.2 billion in sales, up from $7.3 billion.

    Alphabet is also ramping up AI initiatives to improve operational efficiency and productivity for 2023 and beyond. The company is using AI in its finance organization and analytics, but Alphabet did not break out AI revenue in Tuesday’s earnings report.

    Alphabet Chief Financial Officer Ruth Porat told CNBC that gen-AI will be a focus of the call with analysts now taking place.

    Shares of Google have climbed 53% over the past 12 months. The S&P 500 index
    SPX
    has risen 21% the past year.

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  • Denim pioneer Levi’s is rolling out ‘tech pants’ and other new offerings this year. But will retailers stock them?

    Denim pioneer Levi’s is rolling out ‘tech pants’ and other new offerings this year. But will retailers stock them?

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    With a rough 2023 in the rearview mirror, Levi Strauss & Co. this year is trying to tackle its problems with new pants.

    That includes pants with lighter-weight denim; pants for women that can be worn as high-rise or low-rise; and even nondenim pants that management, during Levi’s
    LEVI,
    +1.27%

    earnings call on Thursday, referred to as a “tech pant” for men with “moisture control and 360 mobility.” The company also plans to expand its offerings of Performance Cool pants intended to keep the wearer cool and dry on hotter days.

    But as those products roll out, the retailers that account for most of Levi’s sales are still cautious about packing their shelves with new apparel — even though Levi’s executives pointed to slightly better demand from clothing stores during the fourth quarter and holiday period. And as the denim pioneer cuts costs, brings in new leadership and tries to be a bigger e-commerce player, Wall Street will now be digging around for signs of a payoff.

    “Ultimately, the market will be looking for evidence new strategies can drive accelerated growth,” Stifel analyst Jim Duffy said in a research note on Thursday.

    “We continue to believe in brand vitality and opportunities for extension. With product reflective of new direction arriving in the marketplace across 2024, the proof will be in consumer response,” he continued.

    In an interview with MarketWatch on Friday, Duffy said he was optimistic about Levi’s standing as an established brand and stronger demand for its dresses, skirts and other women’s clothing items. But the more products a company rolls out, he suggested, the more it has to invest to make them work — and the more it needs to manage if sales falter.

    “The risk, as I see it, is that more categories means more SKUs and more product that is fashion rather than core basic styles, and more investment and inventory that, if it doesn’t translate to the marketplace, could result in higher markdowns,” he said, referring to the stock-keeping units by which retailers track inventory.

    Levi’s on Thursday said it would lay off between 10% and 15% of its global corporate staff in the first half of this year, a move intended to save $100 million in costs over that period. The layoffs are part of a two-year plan, called Project FUEL, intended to save money and strengthen the part of Levi’s business that sells directly to consumers via its own e-commerce network and its physical stores, as opposed to third-party retail operations.

    The layoff announcement arrived days ahead of Chief Executive Chip Berg’s departure from that role, with Michelle Gass taking over on Jan. 29. As the company tries to be bigger than men’s jeans, Gass, in Levi’s earnings release on Thursday, said she saw an opportunity to grow internationally, make Levi’s own online and bricks-and-mortar sales a greater priority, and turn the brand into a larger “denim apparel lifestyle business.”

    Levi’s shares fell after hours Thursday, after the company’s full-year profit forecast came in below expectations. The stock rebounded 1.3% on Friday but is still down 10.3% over the past 12 months.

    Still, Levi’s direct-to-consumer sales jumped 11% during the fourth quarter, and accounted for 42% of sales overall. Duffy said that the company has pushed deeper into its direct-sales business because it gives executives greater insight into what consumers want, as well as more control over how it markets and sells its clothing. Cutting out other retailers also widens margins on sales, he noted.

    Levi’s operating margins were higher in the fourth quarter. It also declared a dividend of 12 cents per share, payable in cash on Feb. 23.

    But sales in Levi’s wholesale segment — the sales it gets from retailers who buy Levi’s product, then sell it to consumers — fell 2%. Better results in the U.S. and Asia were offset by a drop in Europe, the company said.

    Retailers have spent the past two years trying to clear unwanted clothes from their stockrooms, and cutting prices in the process, after spiking inflation restricted many shoppers’ appetites to basics.

    As Gass prepares to take the reins, she sought to put a positive spin on retail-chain sentiment. “So net-net, overall, as a company, we’re exiting the year on a strong note,” Gass said on the earnings call. “And U.S. wholesale, we’re encouraged. But as it relates to that channel, we’re not declaring victory yet. There’s been a lot of volatility this past year, some in our control, some outside. And so we are taking a cautious approach as we look forward.”

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  • Advertisers Ride the Brakes: Sharp Drops in TV Spending Make Media Companies Vulnerable

    Advertisers Ride the Brakes: Sharp Drops in TV Spending Make Media Companies Vulnerable

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    Media giants spent most of 2023 looking for signs of a turnaround in advertising spending after several years of a soft market. Despite some rosy predictions, they’re still searching. 

    The situation could force vulnerable companies to consider merger-and-acquisition options as the content marketplace realigns around streaming economics, which generally are not as lucrative as linear TV ad margins. 

    At the beginning of 2023, executives were hoping to get past the pain. “2023 will also be an important year with respect to advertising, where we’re looking forward to an improvement in the market in the back half of the year,” Paramount Global CEO Bob Bakish told investors in February. The ad market “is going to stay weak for the first half of this year, then recover,” Jeff Shell declared in January, before he was ousted as NBCUniversal CEO for sexual misconduct three months later. 

    Warner Bros. Discovery saw TV advertising fall 13% in the third quarter of 2023, to $1.71 billion. Paramount Global registered a 14% dip in the same category, to the same figure, while NBCU logged a decline of 8.4% to $1.91 billion. Disney noted “a decrease in advertising revenue” at ABC and its local TV stations and “a modest increase in advertising revenue” at ESPN and around its other sports programming. Even Fox, which relies more directly on sports, saw its overall ad revenue fall by 1.6%. 

    These results challenge the conventional wisdom that TV advertising will grow even with declining ratings because major advertisers can’t resist the power of the medium’s mass-market reach. Many observers were surprised to see the double-digit drops at Paramount Global and WB Discovery, both of which are heavily dependent on big bucks from ads to bolster the bottom line.

    “It’s becoming increasingly clear now that much like 2023, 2024 will have its share of complexity, particularly as it relates to the possibility of continued sluggish advertising trends,” Gunnar Wiedenfels, WB Discovery’s chief financial officer, said in November. “We don’t see when this is going  to turn.” 

    It’s no secret that advertisers have been tighter with their dollars due to fears of a recession. They’re also grappling with the disruption created by viewers moving from live linear TV to on-demand streaming platforms. “A lot of advertisers are still showing budgetary caution,” says Katie Klein, chief investment officer at Omnicom Group’s PHD media buying agency. 

    Observers say the steepness of the Q3 decline has been a factor in Paramount Global chair Shari Redstone’s decision to consider whether the time has come for her to sell the family empire. 

    To be sure, 2023 had plenty of unusual headwinds that also dented sales, like the Hollywood labor strikes that crimped production of movies and TV shows, which prompted entertainment giants to cut their own marketing expenditures. The strike by United Auto Workers, too, meant that big spenders including General Motors and Ford had to pull back on marketing. Spikes in mortgage rates kept big insurance and financial-services companies from tapping into home-buying. Tech giants have also cut ad spending in recent months, according to media buyers. When the outlook is unclear, it’s easier for advertisers to commit to digital media, which can often be bought in real time according to algorithms that define consumer audiences. Much of TV needs to be purchased months in advance of actual business plans. 

    But don’t count TV out yet. “I do believe you will see a return to spending in some of the traditional linear channels,” says David Sederbaum, executive VP and head of video investment at ad giant Dentsu. “But make no mistake,” he warns. The average viewer’s preference for streaming is “real and persistent and permanent, and the availability of content like sports on streaming platforms will only continue to grow.”       


    Hollywood’s Dilemma

    Traditional TV is in steady decline, but entertainment giants still rely on revenue from linear channels



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    William Earl

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  • Sheryl Sandberg says she's leaving Meta's board

    Sheryl Sandberg says she's leaving Meta's board

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    Sheryl Sandberg, chief operating officer of Facebook Inc.

    David Paul Morris | Bloomberg | Getty Images

    Former Meta operating chief Sheryl Sandberg is leaving the company’s board of directors.

    “With a heart filled with gratitude and a mind filled with memories, I let the Meta board know that I will not stand for reelection this May,” Sandberg wrote in a Facebook post on Wednesday.

    Sandberg, 54, joined Facebook in 2008 as Mark Zuckerberg’s top deputy after spending about seven years at Google. In 2012, she became a board member at the company. During her tenure, Facebook rose from a highflying startup to become one of the most valuable companies in the world, topping a $1 trillion market cap at its peak in 2021.

    Sandberg announced her departure from Meta in mid-2022, following multiple controversies that dogged the company and sullied its reputation among users, lawmakers and investors. Most notably, Facebook was central to the spread of disinformation ahead of the 2016 election and during the early days of the Covid pandemic in 2020. The company has also been in the subject of antitrust investigations and was scrutinized in Sandberg’s waning days for its insufficient efforts to combat hate on its platform.

    When Sandberg stepped down as Meta COO in June 2022, she was replaced by Javier Olivan, who had been serving as Meta’s chief growth officer.

    Since leaving Meta, Sandberg has dedicated much of her time on her LeanIn.org nonprofit, which focuses on empowering women tin the workplace, and related projects.

    “I wanted my new chapter to be able to really make a difference,” Sandberg told CNBC Make It in August. “We’ve been in development on this since I was at Meta, but being able to have the time to put into [this launch] and to really be … a bigger part of this has meant a lot to me.”

    Shortly after Sandberg’s post, Zuckerberg responded with a short reply.

    “Thank you Sheryl for the extraordinary contributions you have made to our company and community over the years,” Zuckerberg wrote. “Your dedication and guidance have been instrumental in driving our success and I am grateful for your unwavering commitment to me and Meta over the years. I look forward to this next chapter together!”

    Meta technology chief Adam Bosworth wrote, “Amazing run Sheryl, thank you so much for everything you did for all of us and also for me personally.”

    Meta’s board consists of Zuckerberg, who serves as chairman, as well as former PayPal Executive Vice President Peggy Alford, venture capitalist Marc Andreessen, Dropbox CEO Drew Houston, former McKinsey & Company senior partner Nancy Killefer, former U.S. deputy secretary of the treasury Robert M. Kimmitt, DoorDash CEO Tony Xu and Tracey T. Travis, a former CFO at Estée Lauder.

    Here’s the full text of Sandberg’s post:

    With a heart filled with gratitude and a mind filled with memories, I let the Meta board know that I will not stand for reelection this May. After I left my role as COO, I remained on the board to help ensure a successful transition. Under Mark’s leadership, Javi Olivan, Justin Osofsky, Nicola Mendelsohn, and their teams have proven beyond a doubt that the Meta business is strong and well-positioned for the future, so this feels like the right time to step away. Going forward, I will serve as an advisor to the company, and I will always be there to help the Meta teams.

    Serving as Facebook’s – and then Meta’s – COO for 14 ½ years and a board member for 12 years has been the opportunity of a lifetime. I will always be grateful to Mark for believing in me and for his partnership and friendship; he is that truly once-in-a-generation visionary leader and he is equally amazing as a friend who stays by your side through the good times and the bad. I will always be grateful to my colleagues and teammates at Meta for all the years of working side by side and all they taught me. And I am particularly grateful to my fellow Meta board members for their lasting friendships, the guidance they provided me for so many years, and their stewardship of products that mean so much to people all over the world.

    WATCH: Three buys and a bail

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  • Beware ‘pricey’ stocks as inflation may ‘roller-coaster back up,’ says BlackRock

    Beware ‘pricey’ stocks as inflation may ‘roller-coaster back up,’ says BlackRock

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    U.S. stocks appear on course for “another year of flip-flopping market narratives” as falling inflation may “roller-coaster back up” and rattle investor expectations for a “soft landing,” according to BlackRock. 

    “Market jitters in early January suggest there is some anxiety about macro risks further out,”  said BlackRock Investment Institute strategists in a note Tuesday. “We stay selective as we expect resurgent inflation to come into view.” 

    The strategists also pointed to “pricey valuations” in the U.S. stock market.

    Markets have favored a small group of seven megacap stocks “for their ability to leverage artificial intelligence,” they said. Those stocks’ price-to-earnings ratios for the next 12 months are “about a third higher than for the S&P 500 and when excluding them,” a chart in their note shows.

    BLACKROCK INVESTMENT INSTITUTE NOTE DATED JAN. 16, 2024

    Price-to-earnings ratios, which “divide a company’s share price by its earnings per share,” fell in the second half of 2023 as stronger earnings expectations supported the megacap rally, the BlackRock strategists said. The so-called Magnificent Seven, as those market-leading megacap tech stocks are known, skyrocketed last year, fueling the S&P 500 index’s 24% surge.

    “Even after the market-wide rally in December, market concentration in a handful of megacaps — firms with ultra-large market capitalizations — remains high,” the strategists said.

    The seven companies with massive market values — Apple Inc.
    AAPL,
    -1.24%
    ,
    Microsoft Corp.
    MSFT,
    +0.49%
    ,
    Google parent Alphabet Inc.
    GOOGL,
    -0.11%

    GOOG,
    -0.11%
    ,
    Amazon.com Inc.
    AMZN,
    -0.94%
    ,
    Nvidia Corp.
    NVDA,
    +3.09%
    ,
    Facebook parent Meta Platforms Inc.
    META,
    -1.88%

    and Tesla Inc.
    TSLA,
    +0.49%

    — have an outsized weighting in the S&P 500.

    Chip maker Nvidia was among the best-performing stocks in the S&P 500 in afternoon trading on Tuesday, with a sharp gain of 2.7% at last check, according to FactSet data. By contrast, the broad S&P 500  index
    SPX
    was down 0.7% on Tuesday afternoon, while the Dow Jones Industrial Average
    DJIA
    and technology-heavy Nasdaq Composite
    COMP
    were also declining.

    Read: What’s next for stocks as ‘tired’ market stalls in 2024 ahead of closely watched retail sales

    Potential catalysts

    “We find valuations tend to matter more for long-term rather than near-term stock returns, and that’s why they usually aren’t enough to spoil market sentiment without a catalyst,” the BlackRock strategists wrote.

    “Earnings could be a catalyst,” as well as inflation, they said.

    Consensus expectations for earnings growth rose last year, with forecasts now calling for an increase of as much as 11% in the next 12 months, their note says, citing LSEG data.

    BlackRock expects that U.S. inflation will this year subside to near the Federal Reserve’s 2% target. For now, that may support the soft-landing scenario the stock market and Fed have “largely embraced,” in which the U.S. may avoid a recession as inflation falls to that desired target, according to the strategists.

    Many investors expect the Fed may start cutting interest rates this year as inflation eases, after the central bank hiked rates aggressively in a bid to tame it.

    “The problem: Inflation won’t remain at that target, in our view, and this risk becoming clearer could challenge upbeat sentiment,” the BlackRock strategists said. “So we monitor earnings season for any signs of cracks given pricey valuations.”

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  • Mark Zuckerberg sold $428 million of Meta stock in the last two months of 2023

    Mark Zuckerberg sold $428 million of Meta stock in the last two months of 2023

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    Mark Zuckerberg cashed in on his company’s 2023 stock rally in a big way — selling nearly $428 million worth of shares in Meta Platforms Inc. over the final two months of the year.

    The Meta
    META,
    -0.53%

    co-founder and chief executive offloaded just under 1.8 million shares over the course of every trading day between Nov. 1 and the end of last year, according to a regulatory filing with the U.S. Securities and Exchange Commission on Tuesday. 

    The sales were in accordance with a Rule 10b5-1 trading plan adopted by Zuckerberg in July and saw him capitalize on Meta’s rebounding stock price, which soared 194.1% in 2023 — and nearly threefold since it hit a seven-year low in November 2022. By comparison, the S&P 500
    SPX
    and the Nasdaq Composite
    COMP
    indexes gained 24.2% and 43.4%, respectively, in 2023.

    The moves also broke a two-year hiatus, dating back to November 2021, during which Zuckerberg did not sell any of his stock in the Facebook parent company, according to Bloomberg, which first reported the news. Zuckerberg, who owns roughly 13% of Meta, is ranked the seventh-richest person in the world with a net worth of $125 billion, according to the Bloomberg Billionaires Index.

    Nasdaq-listed Meta shares, which fell 0.5% on Wednesday to $344.47, are now roughly 11% off their all-time closing high of $382.18 from September 2021.

    Representatives for Meta could not immediately be reached for comment.

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