|Day's range||66.00 - 66.50|
As yet another streaming service enters the heavily saturated space, one Wall Street analyst says consumers might be starting to feel streaming fatigue.
(Bloomberg) -- The Democratic National Committee announced the rules to qualify for the next presidential debate in New Hampshire on Feb. 7.The six candidates who participated in the January debate in Iowa on Tuesday -- Joe Biden, Elizabeth Warren, Bernie Sanders, Pete Buttigieg, Amy Klobuchar and Tom Steyer -- have already made the cut for the forum at St. Anselm College outside Manchester hosted by ABC News, WMUR-TV and Apple News.To qualify under the new criteria, candidates must either meet polling and donor thresholds or have emerged from the Feb. 3 Iowa caucuses with at least one pledged delegate to the Democratic National Convention.The new rules require candidates to have 5% in four national polls approved by the DNC, or 7% in two early-state polls from New Hampshire, Nevada and South Carolina. They must also have contributions from 225,000 donors.Candidates have until the night of Feb. 6 to qualify. The New Hampshire primary is on Feb. 10.Sanders Leads in Emerson Poll of New Hampshire (3:27 p.m.)Bernie Sanders maintains his top spot in New Hampshire, less than a month before voters will cast their ballots in the first primary state, according to an Emerson College poll.Sanders is at 23%, followed by Pete Buttigieg at 18% and Joe Biden and Elizabeth Warren, both at 14%. The numbers were only slightly changed from an Emerson poll in November, and the order of the top four candidates remained the same. Sanders dropped 3 percentage points from the last poll and Buttigieg fell 4. Warren and Biden didn’t change.The biggest movement was for Amy Klobuchar, who had 10% support against 2% in November. Andrew Yang had 6%, followed by Tulsi Gabbard at 5% and Tom Steyer at 4%.Spencer Kimball, polling director for Emerson College, said even though Sanders is the front-runner, many of his supporters doubt he’ll be the ultimate winner of the state. “It appears his supporters are doubting that he will be the actual nominee, with only 49% expecting him to win the nomination,” Kimball said in a statement. “On the flip side, Joe Biden supporters are confident, with 87% thinking he will be the nominee.”The poll published Thursday was conducted Jan. 13-16 and had a margin of error of 3.8 percentage points. -- Emma KineryBiden Is Endorsed by Henry Cisneros (2:59 p.m.)He’s the former mayor of San Antonio, Texas, a former secretary of Housing and Urban Development and a high-profile Latino politician endorsing a 2020 candidate.No, not Julián Castro.With Castro on the campaign trail with Elizabeth Warren, Joe Biden is counter punching by announcing the endorsement of Henry Cisneros, who has almost the same political biography.Their career paths track so closely, you might even call Cisneros Castro’s doppelgänger, if Castro didn’t already have a twin. Cisneros was mayor of San Antonio in the 1980s, a position Castro held from 2009 to 2014. Cisneros served as HUD secretary under former President Bill Clinton while Castro had the job under Barack Obama.Biden also informally got the nod from another former HUD secretary, New York Governor Andrew Cuomo, back in January of 2019. -- Ryan Teague BeckwithBloomberg Would Require All Electric Vehicles (11:11 a.m.)Michael Bloomberg would require all new vehicles sold by 2035 to be electric with 15% of new trucks and buses pollution-free by 2030 as part of a plan to replace gas-powered vehicles and reduce emissions.The 2020 Democratic presidential candidate released a plan Friday addressing emissions from transportation -- now the largest source of carbon pollution -- that includes setting a national zero-emissions standard and offering rebates to help low- and moderate-income families buy electric vehicles or get vouchers for using transit.Bloomberg’s campaign didn’t say how much the initiative would cost or how it would be funded. It also didn’t provide funding details for other elements of his plan such as building more electric-vehicle charging stations, increasing investment in public transit and jump-starting high-speed rail.Bloomberg is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News. -- Mark NiquetteCOMING UP:The Democratic presidential candidates will debate again in New Hampshire on Feb. 7.The first-in-the-nation Iowa caucuses will be held Feb. 3. The New Hampshire primary is Feb. 11. Nevada holds its caucuses on Feb. 22 and South Carolina has a primary on Feb. 29.(Michael Bloomberg is also seeking the Democratic presidential nomination. He is the founder and majority owner of Bloomberg LP, the parent company of Bloomberg News.)\--With assistance from Mark Niquette and Ryan Teague Beckwith.To contact the reporter on this story: Max Berley in Washington at email@example.comTo contact the editors responsible for this story: Wendy Benjaminson at firstname.lastname@example.org, Max Berley, Ros KrasnyFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Nvidia shares have soared roughly 60% in the last year as part of a broader semiconductor market climb that has come despite an overall sales and earnings downturn. So is now the time to buy NVDA stock?
(Bloomberg) -- Sonos Inc. Chief Executive Officer Patrick Spence accused Alphabet Inc.’s Google and Amazon.com Inc. of using their market power to thwart competition a week after filing a lawsuit against the world’s largest search engine.“Today’s dominant companies have so much power across such a broad array of markets and continue to leverage that power to expand into new markets that we need to rethink existing laws and policies,” said Spence Friday at a congressional antitrust hearing in Boulder, Colorado, led by Representative David Cicilline, the Rhode Island Democrat who is investigating competition in the technology sector.Sonos, a 1,500-person company, sued Google Jan. 7 for allegedly infringing five patents covering multi-room audio technology. Spence said Google’s dominance enabled it to violate the speaker company’s intellectual property. He said that Google tries to prevent customers from using its voice assistants alongside another company’s on Sonos speakers. While Amazon doesn’t go that far, he said, it has used its power to “to subsidize the conquest” of the booming smart-speaker market, particularly by under-pricing its offerings.Sonos has worked with the committee since before it decided to file the lawsuit, according to a person familiar with the discussions. It has also responded to questions that the committee sent to customers of the large technology platforms.Google has disputed Sonos’ claims and said it will defend itself. The search giant, which faces antitrust probes by 48 state attorneys general as well as the U.S. Justice Department, says it faces robust competition. Cicilline is using the hearing to air grievances by smaller companies, following a series of Washington meetings that focused on the tech giants.“It is apparent that the dominant platforms are increasingly using their gatekeeper power in abusive and coercive ways,” Cicilline said in his opening statement.The panel also heard from David Barnett, the founder of Boulder-based PopSockets, which makes phone holders and stands. He alleged that Amazon frequently engaged in “bullying,” including deliberately selling counterfeits, threatening to go to unauthorized resellers and dropping prices without consulting. “We have $10 million less to innovate this year” because of PopSockets’s decision to end its relationship with Amazon even though it’s more difficult to sell elsewhere, Barnett said.“It seems like Amazon is so dominant that there is no alternative,” said Representative Ken Buck, a Colorado Republican on the committee.Amazon said in a statement that PopSockets is a “valued retail vendor” and added: “We’ve continued to work with PopSockets to address our shared concerns about counterfeit, and continue to have a relationship with PopSockets through Merch by Amazon, which enables other sellers to create customized PopSockets for sale.”The company said it refuses to work with some resellers to ensure low prices, and rejects the notion that it’s dominant, saying it represents just 4% of U.S. retail.The panel also heard from Kirsten Daru, general counsel of Tile Inc., which makes devices that pair with phones to help people locate lost items such as keys or purses.Apple Inc. is reportedly preparing to unveil a competing service, and Daru’s 100-employee company alleges the phone maker has started putting up roadblocks to Tile’s business, such as burying permissions that allow the phone and Tile devices to communicate and prompting users to disable permissions that have been set.“You’re playing up against a team that owns the field, the ball and can change the rules at any given time,” Daru said in an interview before the hearing, adding that a majority of the company’s customers are on Apple’s operating system.Apple said that its treatment of permissions, which focused on location, were designed to protect user privacy and that it’s working with developers whose customers may want particular apps to be able to track them at all times.Daru said Apple also removed Tile devices from its retail stores, and that it bid on search terms related to the would-be rival to drive up the cost of advertising 50% each week during the fall.Cicilline has said his goal is to develop a final report with recommendations for Congress this year. He told reporters on Tuesday that he wants to wrap up his probe by the end of March and said he’s hopeful the tech giants will cooperate with requests for chief executives to give information without subpoenas, preferably in public hearings.“It’s hard to imagine that we’d conclude the investigation without hearing from some of the large technology CEOs, particularly in companies whether there’s such really centralized decision making,” he said.(Updates with comments from PopSockets CEO from eighth paragraph)\--With assistance from Mark Gurman, Rebecca Kern and David McLaughlin.To contact the reporter on this story: Ben Brody in Washington, D.C. at email@example.comTo contact the editors responsible for this story: Sara Forden at firstname.lastname@example.org, Paula DwyerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Shares of Google parent Alphabet Inc. (GOOGL) have jumped 9% in 2020 to help it ascend into the $1 trillion market cap club. Is it time to buy?
(Bloomberg) -- Apple Inc. reached a multiyear agreement with former “Seinfeld” star Julia Louis-Dreyfus to produce and star in new projects for its TV+ streaming service, adding more big-name talent to its fledgling video effort.The actress and producer is known for her roles as Jerry Seinfeld’s best friend on the show, which ran from 1989-1998, and most recently as the lead in HBO’s “Veep.” The longtime comedian, who has won eight Emmy Awards as an actor and three as a producer, also performed on “Saturday Night Live” in the early 1980s. No financial terms of the deal were released.“I am thrilled about this new partnership with my friends at Apple,” Louis-Dreyfus said in a statement the company released Friday announcing the agreement. “Also, many thanks and kudos to my representatives for structuring the deal in such a way that I am paid in AirPods.”Apple has cut several similar agreements for its TV+ service, including with Oprah Winfrey and Alfonso Cuaron. The company is also working with other top Hollywood names like Steven Spielberg and Jennifer Aniston.Despite the deals, it’s unclear how well Apple TV+ is performing. Apple said last year the service wouldn’t immediately have an impact on its financial results, and the company hasn’t shared any data to indicate viewership or sign-ups for the $4.99-a-month subscription streaming service. An accurate assessment may not come until after Apple’s first free-year promotions for the service begin expiring.Apple is banking on services like TV+ to boost revenue as sales growth slows for its central device, the iPhone. The company generated almost 18% of its $260 billion 2019 fiscal year revenue from services.To contact the reporter on this story: Mark Gurman in Los Angeles at email@example.comTo contact the editors responsible for this story: Alistair Barr at firstname.lastname@example.org, Andrew Pollack, Nick TurnerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Major technology and internet companies have long fueled the U.S. stock market’s climb to record levels, but that trend has come with one notable exception: Amazon.com Inc., which has languished in a fairly narrow trading range for months.Amazon shares haven’t notched an all-time high since September 2018, in contrast to mega-cap peers like Apple, Microsoft, Alphabet and Facebook, which have been hitting records on a near-daily basis. Many of these names experienced pronounced draw-downs over the past year and a half, mostly due to disappointing earnings reports or outlooks. But they regained their momentum last year, as their growth assuaged investor caution. Amazon, however, remains about 8.5% below its own peak.Because of its long-term prospects, Amazon is about as close as a stock can be to a consensus choice among Wall Street firms. Over the near term, though, it is “the most hotly debated among investors” as “debates persist on both AWS and next day shipping efforts,” according to UBS analyst Eric Sheridan, referring to its Amazon Web Services cloud-computing business.Since the start of 2019, Amazon shares are up about 24%, below the 32% rise of the S&P 500, as well as the much larger gains seen in other bellwethers. Microsoft and Facebook are both up more than 60% since the start of last year, while Apple has doubled. The rally resulted in trillion-dollar valuations for Apple, Microsoft and Google-parent Alphabet, a milestone that Amazon briefly eclipsed in 2018.The underperformance reflects concerns over Amazon’s earnings trends, even as it has continued to grow revenue at a double-digit clip. Major investments into initiatives like one-day shipping are seen as headwinds, and shares “may be range bound ‘tactically’” given the impact of this spending, Morgan Stanley wrote on Thursday. The firm added that “near-term profitability is likely to still disappoint” because of these investments, even as it sees the effect as temporary and one-day shipping deepening Amazon’s competitive moat within e-commerce.Another key issue is the waning dominance of Amazon Web Services, which has long been a major driver for earnings and margins, but has faced growing competition from rivals like Alphabet and especially Microsoft. According to Bloomberg Intelligence, which cited IDC data, Amazon Web Services was 12 times larger than Microsoft’s cloud business in 2014. By 2018, the most recent year for which data is available, it was just four times larger.James Bach, an analyst at Bloomberg Intelligence, wrote that Amazon was particularly facing “stiffer competition” with government contracts. “Microsoft’s extensive sales experience, installed base within U.S. agencies and broad range of edge-computing products all make a compelling offering,” he wrote. Microsoft is “uniquely positioned to claim market share as federal agencies upgrade and secure IT systems.”In October, Microsoft beat out Amazon for a $10 billion Pentagon cloud contract, a deal Amazon had been seen as the favorite to win. The company subsequently claimed it lost the contract because of political interference by President Donald Trump, and filed a lawsuit challenging its validity.Amazon earlier this week named a new sales chief for AWS. Deutsche Bank wrote that the “magnitude of personnel changes” at AWS, along with rising competition, underscored the “increased risk of further deceleration” at the business.Separately, Morgan Stanley this week wrote that a quarterly survey of chief investment officers suggested some cause for caution about AWS growth. “Quarterly survey results can be volatile, but AWS saw a notable [quarter-over-quarter] drop in net expected budget share gains” over the next three years, analyst Brian Nowak wrote. “It will be important to continue to monitor these metrics going forward as we think about AWS forward growth.”Amazon is expected to report fourth-quarter results later this month. According to data compiled by Bloomberg, Wall Street is looking for revenue growth of nearly 19% and expecting net income to fall by nearly a third. AWS revenue is seen growing more than 30% on a year-over-year basis, according to a Bloomberg MODL estimate.Wall Street remains almost unanimously positive on the stock. According to data compiled by Bloomberg, 53 firms recommend buying the stock, compared with the four with a hold rating. None advocate selling the shares.To contact the reporter on this story: Ryan Vlastelica in New York at email@example.comTo contact the editors responsible for this story: Catherine Larkin at firstname.lastname@example.org, Steven Fromm, Janet FreundFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- European Union privacy watchdogs are gearing up to police digital assistants after revelations that Amazon.com Inc. workers listened in on people’s conversations with their Alexa digital assistants.Bloomberg first reported in April that Amazon had a team of thousands of workers around the world listening to Alexa audio requests with the goal of improving the software.Similar issues have been raised over Google and Apple Inc.’s digital assistants, triggering privacy fears across the world, as intimate conversations in some users’ homes were laid bare to technicians fine-tuning the technology.EU regulators are now working on a common approach on how to police the technology, said Tine Larsen, head of the data protection authority in Luxembourg, where the U.S. retail giant has its European base and employs a staff of more than 2,000.“Because it’s a question of principle, the members of the EDPB should work out a common position in line with the consistency mechanism to apply data protection rules in a harmonized way for this type of treatment,” she said, referring to a panel of regulators from across the 28-nation EU.The revelations of the snooping into people’s homes came after regulators across Europe were handed beefed-up powers with its General Data Protection Regulation in May 2018, including the right to levy fines of as much as 4% of a company’s global annual sales for the most serious violations. But the move toward common guidelines for digital assistants means companies should avoid fines -- for now.Larsen’s comments echo those of Helen Dixon, head of the Irish watchdog, responsible for overseeing the likes of Apple and Google.She told Bloomberg in November that the regulator first has to “bottom out fully on whether it’s true” when companies say they need to do transcripts of people’s interactions with the assistants. That’s why a focus will be first on coming up with guidelines, instead of investigations or inquiries, she said.Amazon said in a statement that “to help improve Alexa, we manually review and annotate a small fraction of 1% of Alexa requests” and that “access to data annotation tools is only granted to a limited number of employees who require them to improve the service.”EU regulators are working on a common position on the privacy issues surrounding voice assistant systems, said Johannes Caspar, head of the watchdog in Hamburg, Germany. “We urgently need common and reliable industry standards on this to better regulate” privacy protections, he said in an email.Caspar’s office initiated a number of probes into the issue, including one into Facebook over audio transcriptions from its Messenger users, he said. The questions his office has asked of Facebook have been discussed within the EDPB, the EU body of national regulators. The plan is to use the results to have a more coordinated approach by all European regulators affected by the issue, he said.Europe Mulls New Tougher Rules for Artificial IntelligenceThe U.K., which is set to leave the EU at the end of the month, will soon publish the results of a consultation into security features for smart speakers and other connected devices, with proposals for mandatory industry requirements that could lead to potential new regulation, U.K. Digital Secretary Nicky Morgan told Bloomberg Wednesday.Siri ChangesApple, whose Siri virtual assistant is embedded in its operating phone and desktop computer operating systems, pointed to an August blog post about the issue.“We know that customers have been concerned by recent reports of people listening to audio Siri recordings as part of our Siri quality evaluation process — which we call grading,” it said. “We heard their concerns, immediately suspended human grading of Siri requests and began a thorough review of our practices and policies. We’ve decided to make some changes to Siri as a result.”Google, which offers similar technology, referred to its September announcement that it would add new security protections to the way its workers listen to audio snippets, meant to help improve the product’s quality.In a blog post in September, Google said it would tell users that their audio may be listened to if they opt in to a feature that also improves audio quality. “We believe in putting you in control of your data, and we always work to keep it safe. We’re committed to being transparent about how our settings work so you can decide what works best for you,” the company said.While Amazon is escaping penalties over Alexa, Luxembourg, which is the company’s main privacy watchdog in Europe, is probing the company for other potential breaches.This follows complaints from activists that the online retailer is illegally tracking and profiling internet users without their permission, as well as not providing full access to users’ data.Amazon ‘Cooperating’The company says it’s “cooperating” with the authority, “which is at an advanced stage of its fact finding,” according to an emailed statement. The data commission declined to comment on any probes, citing local rules.French privacy activists La Quadrature du Net, filed one of the complaints on behalf of more than 10,000 customers. They urge regulators to crack down on “behavioral analysis and targeted advertising” by Amazon and levy a fine that is “as high as possible” due to the “massive, lasting and manifestly deliberate nature” of the alleged violations without the consent of its users.None of Your Business (Noyb), a group created by Austrian activist Max Schrems, followed up with a separate complaint last January over data access concerns, accusing Amazon of violating EU law by not handing over all personal data requested by a user of its Amazon Prime service.Arthur Messaud, a lawyer with La Quadrature du Net, and Schrems said they’d had no updates from the Luxembourg regulator, which is bound by strict secrecy provisions under national law, meaning it can’t reveal details until after any fines have been levies and all avenues of appeal have been exhausted.(Updates with Google response from 15th paragraph)\--With assistance from Natalia Drozdiak.To contact the reporter on this story: Stephanie Bodoni in Luxembourg at email@example.comTo contact the editors responsible for this story: Anthony Aarons at firstname.lastname@example.org, Peter Chapman, Giles TurnerFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- The impeachment trial of President Donald Trump next week will transform the Senate into a packed but somber chamber where the most contentious matters will be hashed out behind closed doors.Chief Justice John Roberts will preside over the entire trial where 100 senators will sit silently in their seats, separated from their iPhones -- a stark contrast to the usual lengthy speeches delivered by senators to a nearly empty chamber.Here are some ways that the “world’s greatest deliberative body” will be transformed into a hushed courtroom:Silence or suffer ‘pain of imprisonment’Senators will be admonished at the start to “keep silent, on pain of imprisonment.” No talking or debate is allowed in the chamber during the trial. Theoretically, a senator could get thrown into the slammer for chatting up a neighbor or making an outburst during the proceedings. But it’s never been done before. Senators also are directed to stay in their seats throughout the proceedings -- no standing -- and have been told to restrict reading material at their desks to matters relevant to the trial.Checking cell phones at the doorSenators, staff and the press are forbidden from carrying phones and other electronic devices into the chamber, though Democratic Senator Mark Warner of Virginia was seen stealing a glance at his Apple Watch. Large cubbyholes have been installed just outside the chamber and in the cloakrooms to store phones and other electronics.Debating in secret sessionsArguments by House prosecutors and the president’s lawyers will be televised, but the senators’ discussions on the most sensitive aspects of the trial will be in closed session. Under Senate rules, senators serving as jurors are supposed to listen, not publicly debate the trial’s rules or even Trump’s guilt or innocence. The proceedings will go into secret session when the arguing takes place, unless most senators agree to an effort by Minority Leader Chuck Schumer or other Democrats to keep things open.Trial rules based on Clinton impeachmentSenate rules on impeachment trials date to 1986 and provide little structure. Majority Leader Mitch McConnell will offer a resolution Tuesday to lay out the trial’s terms. He said it will largely follow the structure of President Bill Clinton’s 1999 impeachment, putting off the question of witnesses until after both sides present their case and answer senators’ questions, which will be submitted through the chief justice. McConnell said he will be able to pass the resolution with just Republican votes.The first fight -- likely to take place out of public view -- will be over what amendments to trial procedures Schumer can offer, including his proposal to call White House acting Chief of Staff Mick Mulvaney and former National Security Advisor John Bolton as witnesses. Based on the Clinton trial, the public will only see the roll call votes on amendments and McConnell’s resolution on trial rules.Rare Saturday work days for senatorsWhile the Senate is usually in session just four days a week, the trial is expected to keep the chamber at work every afternoon for six days a week starting Tuesday. But mid-trial procedural issues may give the senators -- including four who are seeking the Democratic presidential nomination -- a chance to leave town.News media in velvet-roped pensThe level of security goes far beyond the Senate’s normal operations, with more Capitol Police, restrictions on staff and public spectators, and other rules senators say are intended to limit disruptions.The news media must get special passes limiting who can roam around the Capitol, and they’ll be almost entirely limited to talking with senators within velvet-roped pens, enforced by the Capitol Police. That will make it easier for senators to avoid being asked questions, although reporters can still catch senators boarding underground trains to their office buildings.Casting a tie-breaking voteWith the Senate converted to an impeachment court, there are open questions about how Roberts will enforce the rules. One of the most important questions could be how to break a tie vote, especially on whether to call witnesses or seek documents withheld by Trump. This issue may be addressed in McConnell’s proposed ground rules.All eyes will be on a handful of Republican senators to see if at least four will vote with Democrats on questions such as calling witnesses. Senator Susan Collins, who is seeking re-election in Maine this year, said she’s “likely” to support new witnesses after both sides’ presentations and senators’ questions. Senators Mitt Romney of Utah, Lamar Alexander of Tennessee and Lisa Murkowski of Alaska have also indicated they would be open to hearing additional testimony.“First we need to hear the case,” Alexander said. “That means hear the arguments, ask our questions and then be guaranteed a right to vote on whether we need more evidence. And that could be witnesses, it could be documents. I’ll reserve that decision until I hear the case and I ask questions.”To contact the reporters on this story: Laura Litvan in Washington at email@example.com;Steven T. Dennis in Washington at firstname.lastname@example.orgTo contact the editors responsible for this story: Joe Sobczyk at email@example.com, Anna Edgerton, Laurie AsséoFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Progress Software (PRGS) fourth-quarter 2019 results benefit from continued strength in OpenEdge, Ipswitch and Data Connectivity and Integration revenues, driven by multiple deal wins.
(Bloomberg Opinion) -- Comcast Corp.’s soon-to-launch Peacock service shows that advertising is the future of streaming TV. Consumers may be OK with that. On Thursday, the cable giant’s NBCUniversal entertainment division showcased Peacock to investors ahead of the app’s soft launch slated for April 15. Like Netflix, Disney+ and HBO Max (and to some extent, the content-lite Apple TV+), Peacock offers a library of movies; older and current network TV shows, such as “The Office” and “This Is Us”; and original programming made exclusively for its streaming audience. But it differs from the other services in one significant way: Peacock’s primary source of revenue will be ads, not subscriptions, allowing viewers the option of streaming for free. Let’s face it, paying for individual streaming-video apps at $7, $13 and $15 a pop isn’t all that cord-cutting was cracked up to be. The streaming-TV subscription model is brand new and broken. One app isn’t enough, yet having multiple subscriptions can get so expensive customers are left to wonder why they even got rid of cable. The streaming wars haven’t been a delight for the entertainment giants and their shareholders, either: These new apps are extremely costly to build and to stock with content, and they’ll cannibalize the larger revenue streams generated by traditional TV networks. Put it this way: TV just seems to work better for everyone when the consumer is the product, able to be sized up by advertisers desperate for a few moments of our time in hopes of activating a shopping reflex.Anecdotally, it’s said that viewers can’t stand ads. But in fact, research has shown that the No. 1 gripe for video subscribers is how much they’re paying. In a survey of about 6,000 North Americans conducted for TiVo Corp. toward the end of last year, about 70% said their reason for cutting the cord was that pay TV was too expensive. A separate survey by Ampere Analysis Ltd. similarly found price to be by far the biggest motivator for consumers switching to ad-supported apps, and 39% said they don't mind seeing ads while they watch. “We continue to believe consumers do not hate ads,” Rich Greenfield, an analyst for LightShed Partners, wrote in a report this week. “They hate heavy ad loads of un-targeted, repetitive ads in contrast to Instagram where the ads feel more like content.” Peacock is promising just five minutes of ads per hour.Media companies developing streaming services shouldn't underestimate the power of “free,” my colleague Sarah Halzack and I wrote last year in a column highlighting the appeal of ad-supported streaming offerings, such as Tubi, The Roku Channel and Pluto TV, which is now owned by ViacomCBS Inc. But compared to the quality of those apps, Peacock doesn’t feel free — it has plenty of premium content, carefully thought-out navigation and features, and with the option to watch some programming live and other stuff on-demand. A fuller content library can be accessed with Peacock Premium for $5 a month, although Comcast subscribers — even those who only have internet service — can get that version at no extra cost. For $10 a month, Peacock can be ad-free. But Comcast is probably hoping everyone will opt for the ads. About 70% of Hulu’s subscribers are on its ad-supported version, Peter Naylor, who heads up advertising sales for Hulu, said at a conference last year. And according to LightShed’s Greenfield, Hulu makes more money from its ad-supported version than from its ad-free subscriptions.For Comcast, it’s about “light advertising and bundling,” Jeff Shell, the newly installed CEO of the NBCUniversal unit, said during Thursday’s presentation. It’s one of the first signs of ”the great re-bundling” that I wrote about in November, as media giants realize they need to do something about the big consumer pain point of streaming: too many subscriptions.Comcast predicts Peacock will have at least 30 million active accounts and $2.5 billion of revenue by 2024, and that Ebitda will break even by then. Walt Disney Co. estimates Disney+ will turn profitable that same year, but it will take at least twice as many subscribers paying about $7 a month to do so. Similarly, AT&T Inc. is forecasting HBO Max won’t start making money until 2025, even though its fee is $15 a month. Meanwhile, Netflix has insisted it won’t adopt ads, despite the company’s $19 billion of content obligations as it burns through billions of dollars of cash each year.Of course, if ads are the name of the game, the industry has work to do to make them less annoying. Hulu, which is controlled by Disney, has been on the forefront of trying new advertising methods that are less interruptive than traditional commercials. It rolled out “pause ads” last year, which promote a brand’s product on screen while a video is paused.Comcast may be the only media giant to fully embrace ads so far for its streaming debut, but others will probably transition to a model more like Peacock’s over time. After all, birds of a feather flock together.To contact the author of this story: Tara Lachapelle at firstname.lastname@example.orgTo contact the editor responsible for this story: Beth Williams at email@example.comThis column does not necessarily reflect the opinion of Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering the business of entertainment and telecommunications, as well as broader deals. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.