Page 24 - ARUBA TODAY

A24 TECHNOLOGY
Thursday 19 april 2018
Netflix is proving to be a tough act for copycats to follow

By MICHAEL LIEDTKE er fell to $5.32 per month “You have to earn it first by
AP Technology Writer last year, down from an av- having spectacular con-
SAN FRANCISCO (AP) — erage of $6.84 per month tent that everybody wants
Netflix’s video-streaming in 2015, according to an to see,” Netflix CEO Reed
service has been thriving analysis by consumer re- Hastings said Monday dur-
for so long that other com- search firm ValuePenguin . ing a discussion of the com-
panies are striving to du- The decline primar- pany’s first-quarter results.
plicate its success in other ily stemmed from discounts “But if you do that you can
kinds of digital entertain- that Spotify gave for its fam- get people to pay a little
ment and content. ily packages and students, bit more.”
Spotify’s music-streaming helping to increase its paid The pricing upturn is one
service has emerged as subscribers from 28 million reason Netflix’s first-quar-
the most celebrated of the in 2015 to 71 million at the ter earnings climbed 63
aspiring clones, despite end of last year — nearly percent from last year to
significant challenges that twice as many as Apple $290 million, or 64 cents per
will make it difficult to keep This March 19, 2018, file photo shows the Netflix app on an iPad Music, its biggest rival. share.
growing at the same pace in Baltimore. Netflix, Inc. reports earnings Monday, April 16, 2018. The decrease in Spotify’s Many investors still believe
as Netflix has been in video digital music that is largely company to do that be- average price per subscrib- Spotify has a chance to
streaming. the same as the libraries cause major recording la- er will make it more difficult become the Netflix of vid-
The biggest difference be- available at the same $10 bels so far are licensing all to turn a profit, something eo streaming. Those hopes
tween Netflix and Spotify monthly price on rival music their music to any service that the company has nev- are a big reason why Spo-
boils down to their ability to streaming services from Ap- willing to pay them. Even er done since its inception tify has a market value of
separate themselves from ple, Google and Amazon, if a recording label offered in 2007. $26 billion two weeks af-
the rest of the pack. three larger companies exclusive rights to some of Meanwhile, Netflix has ter its debut as a publicly
Netflix has firmly estab- with far more resources. its popular songs, Spotify raised its U.S. streaming traded company. But Spo-
lished its service as a staple Netflix demonstrated how would have trouble outbid- prices twice since 2014. tify’s stock has declined
in tens of millions of house- well its formula works again ding its far wealthier levels. In the first quarter of this 15 percent from its trading
holds around the world by Monday with the release The similarities among the year, Netflix’s average rev- high of $169 per share, re-
pouring billions of dollars of its first-quarter earnings. major music-streaming li- enue per paying subscriber flecting doubts that it will
into a slate of original pro- The Los Gatos, California, braries already appear to worldwide stood at $10.10 ever come close to copy-
gramming that can’t be company added another be undermining Spotify. per month, up 14 percent ing Netflix, which boasts a
watched anywhere else. 7.4 million video-streaming The company’s average from $8.89 per month at market value of more than
Popular shows such as subscribers during the first revenue per paid subscrib- the same time last year. $130 billion.q
“Stranger Things,” ‘’House three months of the year,
ror” have enabled Netflix lion throughout the world, Waze causing L.A. traffic headaches,
ending March with 125 mil-
of Cards,” and “Black Mir-
to keep attracting millions including nearly 57 million city council member says
more subscribers each year in the U.S.
while cultivating enough The performance exceed-
customer loyalty to be able ed management and claims one narrow street
to gradually raise its prices. analyst projections to the in his Sherman Oaks district
That leverage allows Netflix delight of investors. Netflix’s sometimes sees more than
to spend more to acquire stock climbed more than 675 vehicles an hour be-
the rights to TV series and 5 percent to $324.10 in ex- cause of drivers using the
films while also remaining tended trading. Google-owned app.
profitable. Spotify eventually could The traffic is increasing ac-
In contrast, Spotify is sell- build a unique collection of cidents and damaging
ing consumers access to content too, but there is no roads not meant for heavy
an extensive catalog of clear path for the Swedish traffic, he said.
Waze spokeswoman Chel-
sea Russo declined com-
ment on possible litigation
but referred to a blog post
last week by CEO Noam
Bardin, in which he touted
the company’s commit-
ment to “civic responsi-
In this file photo taken March 27, 2017, the Waze application is bility.” Bardin wrote that
displayed on a smartphone in San Francisco. Waze shares its data with
Associated Press Los Angeles county and
By CHRISTOPHER WEBER Councilman David Ryu city transportation officials
Associated Press sent a letter to the city at- to “enable them to make
LOS ANGELES (AP) — Los torney’s office, outlining strategic planning deci-
Angeles should consider what he says are danger- sions and improve existing
legal action against Waze ous conditions created infrastructure.” Similar ef-
over complaints that the by Waze users. “Waze has forts in Boston have seen
traffic navigation app is upended our city’s traffic a reduction in congestion,
recklessly guiding motorists plans, residential neighbor- Bardin said.
off thoroughfares and into hoods, and public safety “We do not ‘control’ traf-
residential neighborhoods for far too long,” Ryu said. fic in any way but rather try
in search of shorter or “Their responses have been and do the best with what
quicker routes, a city coun- inadequate and their solu- infrastructure exists,” he
cil member said Tuesday. tions, non-existent.” Ryu wrote. q