 Coming up on DTNS Universal and AMC theaters fight in public. Will this mean more streaming movies for you? Plus why perfectly reasonable people resist contact tracing and the real story about the Quibi email breach. This is the Daily Tech News for Thursday, April 30th, 2020 in Los Angeles, I'm Tom Merritt. And from Studio Redwood, I'm Sarah Lane. From Oakland, California, I'm Justin Robert Young. And I'm Roger Chang, the Shoes producer. We were just talking about virtual fans putting cardboard cutouts or streaming video of fans in the stands for sporting events that won't have people watching them happen and get that. And all kinds of good discussion at Good Day Internet. Become a member at patreon.com slash DTNS. Let's start with a few tech things you should know. The Raspberry Pi Foundation released a high quality camera, a module for the Raspberry Pi system on a chip with a 12.3 megapixel backside illuminated Sony IMX477 sensor. The board supports interchangeable C and CS mount lenses and offers adjustable back focus and initial resellers will bundle the high quality camera with either a $25, $6 millimeter CS mount lens or a $50, $16 millimeter C mount lens. The high quality camera module itself is available for $50. The app analytics firm Sensor Tower reports that ByteDance's TikTok and the Chinese version Duyan surpassed two billion downloads combined since Sensor Tower started collecting analytics in 2014. Only Facebook, WhatsApp, Instagram and Messenger have surpassed that milestone excluding pre-installed apps. In Q1, Sensor Tower estimates that the app was downloaded 315 million times the highest number of downloads for any app in a quarter. Some of you told me directly by email, this would never happen. Facebook began rolling out its image transfer tool in the US and Canada letting users transfer their images to Google Photos out of Facebook. The tool originally launched in Ireland in December last year as part of Facebook's work with the data transfer project. Facebook says that once the tool rolls out globally, Facebook will work to enable transferring images to Microsoft, Apple, Twitter and other companies that join the data transfer program. Analyst at Trend Force found that global smartphone production in Q1 fell 10% on the year to roughly 280 million units. The firm predicts a 16.5% drop on the year for Q2 which would be the largest decline in a quarter. The top six global smartphone manufacturers only vivo increased production volume in the quarter up 5.5% on the year to 23 million units. An attorney's call Qualcomm says it expects a 30% reduction in handset shipments for the quarter ending in June but doesn't forecast to change in demand for 5G handset equipment. Facebook has started allowing some contract content reviewers. Easy for me to say to return to work in its content review centers in San Francisco and Austin, Texas. Returning to work is voluntary and offices have reduced capacity. Returning contractors will also be given personal protective equipment and have their temperatures checked at the beginning of their shift. Offices will be deep cleaned at the end of their shifts which considering the stuff they have to look at probably appropriate. The Video Electronic Standard Association or Visa issued the spec for DisplayPort Alt Mode 2.0. This lets USB4 connections or USB-C connections under the USB4 spec offer DisplayPort 2.0 functions. That includes 4K displays at 140Hz with HDR, 8K displays at 60Hz with HDR and 16K displays at 60Hz with compression. Devices that support display DisplayPort Alt Mode 2.0 should start arriving next year. I was wondering where we start talking about 16K I guess the days today. There we go. Intel announced its new 10th gen desktop processors code named Comet Lake, the fifth iteration of the company's Skylake micro-architecture and built on a 14 nanometer process. AMD's chips are made on a seven nanometer process so Intel is obviously gonna emphasize its clock speed advantage over AMD's cords and efficiency. Intel announced 32 processors with the top line i9-10900K, including 10 cores, 20 threads, a base block of 3.7 gigahertz with a thermal velocity boost clock up to 5.3 gigahertz. In its earning call Wednesday, Microsoft noted that it has seen, quote, two years worth of digital transformation into months end quote. Microsoft also said its Microsoft Teams users have grown from 44 million last month to 75 million daily active users this month. Teams has also had 200 million meeting participants in a single day compared to Zoom's 300 million meeting participants. Zoom has not announced an active user count. Meanwhile, in other Microsoft news, gaming revenue rose 2% but Xbox Live users rose 90 million and Xbox Game Pass reached 10 million subscribers. Microsoft also announced that it will stream an announcement and demo the Xbox Series X gameplay on May 7th at 11 a.m. Eastern time. Couple of earnings announcements coming up right as we're doing the show. So we'll have more context for them tomorrow but Apple announced financial results for Q2 covering the period between January 1 and March 31st. Revenue of $58.3 billion up slightly over last year. So the March quarter, like we have been seeing with other tech companies did not adversely impact Apple as much as many had feared. Amazon also released their second quarter operating income but it was below estimates. The company forecast operating income in the range of a loss of $1.5 billion and profit of $1.5 billion. And analysts were expecting operating income of $3.8 billion. So I think people were just more bullish on Amazon because of all of the sales and delivery and they didn't quite meet those expectations. Again, we'll talk about that in a little more detail tomorrow. Let's talk a little more right now about Twitter. You know, speaking of quarterly earnings reports, Twitter beat expectations on Q1 as revenue rose 3% on the year and it lost a penny a share. Twitter's monetizable daily users grew 24% to an all-time high of $166 million beating estimates by about $2 million. Twitter said ad revenue declined 27% year over year between March 11th and March 31st and CFO Ned Siegel said that it's a sign of what the company has seen in April. Twitter says ad sales rebounded in Asia and Twitter plans to release tools earlier than planned for direct response ads which are attractive to game and app makers who are continuing to advertise. Twitter will limit hiring to product development, research and user support. Yeah, this is pretty good for Twitter, honestly. It says, look, we're seeing the same ad drop off in March that everybody else did. Facebook said they thought it was stabilizing in April. Twitter a little less confident, also a little less detailed, saying, yeah, we're seeing April look pretty much like March but maybe that's another definition of stabilized. But mostly what it is is Twitter said, yeah, people turn to us for news and right now everybody wants more news so more people turn to us now on Twitter. I know people use Twitter a lot of different ways. My Twitter use, gosh, a few years ago was way higher than it has been until very recently. It is especially because the news is very swift these days and things are coming at us quick. I can see why maybe those who had dipped in Twitter usage are not necessarily refreshing their pages every five seconds but usage is up because it does work well in breaking news situations. We're all gonna see what happens to this ad game and it really depends on where the economy is. A new survey conducted by the University of Maryland in the Washington Post finds that nearly three and five Americans are either unable or unwilling to use Google and Apple's new COVID-19 infection alert system which is currently in development, which may impact the app's effectiveness because you need people to either want or be able to use it. Of the 82% of surveyed Americans who have smartphones, around 50% of them said they definitely or at least probably would use such an app. Willingness among those reporting that they are already worried about getting sick, obviously higher. 59% of survey respondents said that they would be comfortable using the app to broadcast to others if they indeed did test positive for COVID-19. A recent study by epidemiologists at Oxford University estimated that 60% of any areas, general population would need to use a contact tracing app such as this that notifies users of exposure along with other tactics, broader testing, quarantining of the most vulnerable people for example in order for the app to effectively contain a virus and support numbers going down. Yeah, we've hammered this point on DTNS over and over. You need comprehensive testing and you need manual contact tracing. The app is a way to help bolster the contact tracing and I think this is a psychological reaction. There is definitely a deployment issue of the 18% who don't have smartphones. What do you do about those people? Do you issue them possible wristbands or does the state provide some limited devices? That's what's been happening in some of their countries. That's a problem that needs to be solved but the largest number of them is just getting people who have the devices to turn it on and I am well convinced that this is a reasonably privacy protecting initiative of Apple and Google and we've gone over why that is and how it's on device, it's encrypted, it's anonymous, it's really difficult even if they didn't turn this off for it to be misused and yet when I think, will I pick up my phone and will I say yes, track me, I get a gut reaction that I don't wanna do it. Even though up here in my head, I reasonably know that this is a very good thing that it's necessary to protect people. There's just an emotional reaction to this of like, yeah, but do I, you know, I'd rather not maybe if I don't have to. Yeah, and ultimately that's going to be the question and whether or not there is a push by the government to either incentivize people putting this, turning this on, mandating in some cases, some governments have taken different positions. I agree that the solution is about as elegant as you're going to get this kind of tracking but I'm with you, there's just something about even this particularly gilded a pathway that I just has a chill run up my back, be it a totally irrational one. Yeah, it's hard overhead, right? Like it's not that I don't understand that this is like tighter than any other behavior I already do. Like I'm already tracked way more by just serving the web than I will be by this contact tracing app. And yet there's that part of me that's like, you know, I should force myself to do this because I just, I don't know, there's an emotional reaction of like, because it's disease and because it's called tracking, even if that's not the official name, I don't know, there's something about it that they're going to have to overcome. And I think part of it may be that you start to show the benefits even though you need 60% for ideal operation, 20% is better than none. And if they start to show like, hey, we're able to isolate people more and we're able to have these benefits, maybe they'll start showing people that participating is helpful and that will start to get people more on board. Indeed. Reddit announced a new, whoa, whoa, whoa, I got something first. A tech entrepreneur, Zach Edwards wrote a medium post showing several sites send email addresses to third-party advertising and analytics companies during user signup. Google, Facebook and Twitter's advertising units are among those who have received email addresses through this mechanism. This is an honest mistake, although once you realize it's a mistake, whether you fix it or not, could reveal whether you're honest or not. JavaScript loaded on many pages, collects information like your browser type, your device, et cetera. Some of it's for benign analytics, like how many people are on Firefox, we wanna know. Some of it is for ad targeting purposes and that's where fingerprinting comes in. Like, well, we don't know the person we didn't set a cookie, but maybe we can figure out who they are by the profile of what devices they use, et cetera. A referrer field has been used since the 90s on the web. That gives anybody the URL prior to the page the script is loaded on. This is essential for understanding behavior. Again, for benign purposes, for performance purposes, but in situations where a user is clicking an email confirmation link. In other words, like you've signed up, they send you a link, they're like, click this link to prove it's you, which is perfectly normal. The user's email address may be included in the URL you're clicking and therefore in the referral URL that is reported and therefore accidentally sharing your email with any third party that gets the referring URL. That's why I say like, this could be one hand not knowing what the other is doing. Like, oh, that email shouldn't have been in the referring URL and the person who wrote that was like, oh, I didn't think about it showing up in the referrer, but once you know that, do you report it as a third party and say, hey, I'm getting this information, I shouldn't? Do you go the other way and like, hey, I've got this great information. I'm gonna start gleaning it and gathering it and storing it. And if you're the company that's doing this, do you fix it? Zach Edwards says that wish.com Mailchimp and The Washington Post took action to remedy the problem quickly when he alerted them about it. In fact, he gave wish.com extra points for quickness. Quibi says it has fixed the problem. That's what you're gonna see all the headlines about, but Edwards says he can't verify that they have, he's like, I don't see the fix that they're talking about. And JetBlue hasn't even acknowledged that the problem exists. Also, Growing Child magazine, Democratic data broker ngpvan.com and everyaction.com have been identified as having the problem. Edwards didn't really detail what their responses have been yet in his article, but I thought it was worth explaining to folks that you're gonna see a lot of things about Quibi having an email breach. It's not exactly a breach and it could be easily fixed. And the reason why Quibi's gonna get lumped in here is because there are other problems with Quibi and this will just be yet another like rains and pours narrative that they're gonna be stapled to. That's why they're used in the headline. And also because they're new, so theoretically under GDPR, et cetera, et cetera, they should have known better. They should have been a little more careful. But ultimately, this is not a, this is a good problem that has now been identified and should be rectified, of course, right? And yeah, let's give credit along with Zach Edwards to wish.com for their speedy action and for Mailchip and Washington Post for getting on it and getting it fixed as well. Because I do believe that this is in the beginning an honest mistake. Maybe somebody looks at that on a mistake and decides to replicate it somewhere else dishonestly, that's possible. I definitely saw this story originally as, oh, Quibi, we knew there was something up here kind of thing, new short form video service actually really nefarious. Well, when you kind of dig into what the story is, it is one of these things where, yeah, unfortunate companies said, oh, sorry, let's fix this. And in theory, this is a good thing. Yeah, hopefully they really fix it and don't just say it. Well, yes, that too. Reddit introduced a new chat tool called Start Chatting, which will randomly match you up with up to seven users in a given subreddit into a chat. The feature will roll out to 16,000 safer work subreddits and expand in the coming weeks. Users can exchange messages, share posts or send gifts in the chat. Users can report chats to Reddit within conversation or block other users so they will not be paired up with them in chats going forward. It's almost like some kind of roulette wheel for chatting. Without video though, thank goodness. Without video, yes. By the way, Engadget has since updated recently their article saying that Reddit has changed from saying 16,000 subreddits to saying 50% of safe for work subreddits. So not all of them have access and they're not putting a number on it anymore, but safe to say, if you're really in a subreddit and you don't see it, that's not because it's not there. It's that it hasn't been rolled out to that subreddit. I like the idea of limiting this to different people each time because then it's not, it feels a little bit like, oh, okay, I can chat without worry because it's a limited number of people and it's not like somebody has set up camp in here. They can't. On the other hand, you're not really building a community if you can't go back and see the same people over and over again. Yeah, I mean, it's like if you, I don't know, wanted to stay away from the click nature, not clicks, but clicky, like high school kind of stuff, you say, yeah, you're gonna cycle people through. There's gonna be an element of surprise. You're gonna get to know your fellow subredditors. But I mean, how often do tools like that work anywhere else on social platforms? Yeah, I'm not so sure that that kind of randomness works and then you got Reddit in the mix in general. Of course, it totally depends on the subreddit and the community there. And if you know enough people and you hang out there enough, then you might get something out of it. You know, I think the only thing here is that Reddit has been throwing a lot of pasta at the wall, maybe copy pasta, to try to evolve itself. I mean, although Reddit's simplicity is kind of its strength, but between their live streaming thing, which is fundamentally useless for me, I don't know if this is going to be quite of where to go. I can't imagine myself voluntarily getting into a chat room with seven random redditors, even in a subreddit that I really care about. But maybe there's another version of this by Reddit thread or something like that that could be valuable going forward. Hey folks, if you wanna get all the tech headlines each day in about five minutes, be sure to subscribe to DailyTechHeadlines.com. Theaters require a 90 day exclusive on movies before they can be released in other formats, particularly digital formats. This is a big fight with Netflix. You hear about it all the time. That's why you don't see Netflix movies shown in big theater chains like AMC. You see them in the small indie theaters that are more flexible in these things. Studios, however, because theaters aren't open, have been releasing movies straight to digital. Now, the theaters so far hadn't complained too loudly because they're closed, you know, what are they gonna do? But the sparks began to fly earlier this week, starting Tuesday when a Wall Street Journal article titled Trolls World Tour breaks digital records and charts a new path for Hollywood. I think that second part of the headline may have been part of the problem here. Reported that Trolls World Tour made nearly $100 million in three weeks of digital sales surpassing the first Trolls movies theatrical revenue. Now, those are apples and oranges. The first Troll movies theatrical revenue plus its digital revenue is probably going to be up, end up being more than Trolls World Tour. But that didn't matter. What mattered was the headline and the idea that Trolls World Tour did better than the original Trolls by skipping the theater. The other thing that fan the flames is NBC Universal CEO Jeff Shell told the Wall Street Journal and I quote, the results for Trolls World Tour have exceeded our expectations and demonstrated the viability of premium video on demand. As soon as theaters reopen, we expect to release movies on both formats. Those three little words sparked a very serious reaction in AMC. Now, keep in mind, Universal didn't say they were gonna violate that 90-day window but they also didn't go out of their way to say they wouldn't. That led to AMC Theater's Chairman and CEO Adam Aaron writing a letter to Universal. It is disappointing to us but Jeff's comments as to Universal's unilateral actions and intentions have left us with no choice. Therefore, effective immediately, AMC will no longer play any Universal movies in any of our theaters in the United States, Europe or the Middle East even though they're all closed. But even when they open, we aren't gonna play them. Also, the letter said this is not some hollow or ill-considered threat. Incidentally, this policy is not aimed solely at Universal out of peak or to be punitive in any way. It also extends to any movie maker who unilaterally abandons current windowing practices, absent good faith negotiations between us so that they as distributor and we as exhibitor both benefit and neither are hurt from such changes. Universal is the only studio contemplating a wholesale change to the status quo, hence this immediate communication response. Remember, Universal didn't quite say they were contemplating a wholesale change but AMC put on notice, if any other studios get any wild ideas, you're gonna get the same problem, Banhammer. That evening, Universal responded in a statement, we absolutely believe in the theatrical experience and have made no statement to the country. Read all of the words, folks. They didn't say that part. As we stated earlier, going forward, we expect to release future films directly to theaters as well as on premium video on demand when that distribution outlet makes sense. We look forward to having additional private conversations with their exhibition partners but are disappointed by this seemingly coordinated attempt from AMC and the North American theater owners to confuse our position and our actions. Again, not saying they'd break the window but not making it clear they wouldn't. KG, Wednesday, Regal Cinema's owner of Cineworld chimed in saying it will not show films that fail to respect the theatrical window but didn't call out Universal in particular because they don't wanna lose that F9 money that's coming next year but they do wanna support their big brother AMC so they're letting AMC take all the heat. That brings us to today, Thursday. Comcast had its earnings call and Jeff Shell said, the question is when we come out of this, what is going to be the model? I would expect that consumers will return to theaters and we will be part of that. I also would expect premium video on demand is going to be part of that offering in some way. It's not going to be a replacement but it will be a complimentary element and we're just going to have to see how long that takes and where it takes us. Shell also said, the majority of movies, whether we like it or not, are being consumed at home and it's not realistic to assume we're not going to change that this part of this business isn't going to change like all parts of the businesses are going to change. So, KG, it didn't clarify anything. He again didn't use the terms 90 day window, didn't reassert anything, kind of implied that it's complimentary. Does that mean at the same time? I don't know. Meanwhile, AMC Entertainment has delayed filing its Q1 financial reports until June 24th. They do have a 500 million loan to keep them going into the middle of the summer. So the bankruptcy rumors have sort of settled down for now but they're not in good shape. Sarah, Justin, what would you give to be a secret Zoom bomber in the universal AMC Zoom discussions about all this? Oh gosh, so much caging in this. I don't even want to be in that Zoom call. There's, my overall reaction to this is, listen, people are going to watch movies at home. They've been doing it for some time. They have a lot more options. And this whole, everyone has to stay at home. The kids are crawling the walls. We need to watch movies. This is our only choice. Has heightened both fear and the realization on many people's minds that, you know, I thought I would have had to see this in the theater but I really enjoyed this movie and I was on my couch and I made my own popcorn and life continues. That's just the reality. We're not going back to the old reality. The old reality is gone. Yes, people, when they can return to the theaters will do so. The numbers probably aren't going to be as strong. You know, maybe for certain movies, certain big blockbuster movies that have always kind of historically, you know, had the long lines on opening weekend and stuff like that. You know, maybe they're impacted less but I think overall theaters are going to take a big hit from this. And I understand why AMC would be like, this is insane. Tell us what you're going to do. And if you do what we think you're insinuating we're just not going to run your movies. Well, okay, you're kind of like blocking yourselves out of the way that this whole thing is going in the future anyway. I mean, it's all a lot of hysteria based on the fact that, yes, life is changing. You know, why don't we just try to think of new ways for everybody to make money and stop fighting about a world that doesn't exist anymore? This is a very, very, very long and tortured relationship between exhibitors and distributors. In fact, you can go all the way back to the 80s when all of a sudden this marriage that had had its own troubles in, you know, all of a sudden introduces another party. You know, there's the young fresh home video starts coming around and the movie theaters are like, look, I just don't want to see it, whatever. I don't think it's good for our marriage, but fine, keep it far away. And eventually it kept getting closer and closer and closer and then it was 90 days, whatever. At this point, what Universal is doing is basically telling the theaters, we are going to look at this, maybe not for everything, maybe not for Avengers or maybe not for F9 for the new Fast and Furious movie, but for family stuff, maybe. For other movies that we think are gonna benefit from day-in-day stuff, maybe. This is where we're starting our new negotiation because guess what? We now have all the cards. You're going to be coming back into a market where people are scared about dying walking into your facilities. And so whether or not you survive, and by the way, footnote, I think part of the reason why AMC has gone ballistic on this, considering the fact that they are now effectively on life support is this might be a sale protection situation where they might be looking to sell to somebody and they want to get a quote out of Universal saying that whoever buys them will not be immediately to have these things taken away. But just like a, I'm gonna do one more metaphor, just like an aging star no longer has all the choice on director and script, the studios understand that their leverage has greatly increased over the theaters and they are going to do what they want. And Troll's World Tour will be one of those weird footnote history, you know, movie buff movies that will be remembered. Yeah, this is a game of chicken. Comcast is not doing great in its earnings. Its theme parks are shut down. It's making money off ISPs and cable TV and some television but you know, it's losing money from movies as well. So it's not in great shape, but it knows it's in better shape than AMC is. So even though they need each other, you don't get that F9 money universal if you don't have theaters. This was Jeff Shell. I still don't know if he means they want to violate the 90 day window or if it just means some movies that would have gone to the theaters in the past will go straight to digital. I can't tell. And I think that was on purpose because he wants to gain leverage over them. And I think AMC freaked out even more so than maybe they expected. This is going to be a negotiation. And what you saw was him very deliberately touching the third rail and the theaters reacting the way that you would expect when the third rail is touched. So here's what I want. WinFast and Furious 9 comes out next year. I want all of you to remember this and send me a picture of yourself going to see it in an AMC theater to feedback at dailytechnewshow.com. Thanks everybody for participating in our subreddit. You know, there's quite a bit of Hollywood stuff that makes it there. We want to know what you care about. You can submit those stories. Also vote on other stories. Let them rise to the top, dailytechnewshow.reddit.com. All right, let's check out the mailbag. Well, I think that's a fine idea, Tom. This one comes from David and Sunny in Cool Minnesota who says regarding our conversation yesterday about who should get a patent for designs that was technically created by AI, David says, you're buying AI and you have no interaction with it. In that case, why'd you buy it? Says David, but okay. It makes a bunch of patentable designs. Those designs should belong to the person who created the AI. Now, if you buy an AI and provide input and interact with it and use it for whatever and there are patentable designs that come from it that even though somebody else created it, you provided the input that was essential to creating the design so you would get the patent, not the AI. Think of it like this. If an artist paints a painting, who owns it? The artist or the brush? What if the artist uses a simple machine to make the painting such as a paint can with a hole or holes punched in the bottom? The drips and drizzles the paint onto a canvas as it swings back and forth from a rope, tied to a hook on the ceiling. Does the artist get credit or does the paint can? For me, if we continue to anthropomorphize AI or other machines, I think it'll lead to a lot of troubles and problems as we as a society expect AI to act in a human way, but we're constantly disappointed and scared by the alien way it will likely act. It's with the paintbrush thing, we talked about this a little, it's about intention. If you intend the brush to swing from a thing and it acts like you intended, then yeah, you're the one who made it. You get the intellectual property. But with AI, it's doing things that you may not have intended. And I think that's where the patent system breaks down. But I like his point, particularly about, hey, if you own the AI and you did something to make the AI happen, then you should get the credit for the patents that come out of the AI that you own. Even if someone else made it, I'm curious what intellectual property lawyers in the audience think of that. Will that cause problems if that's how this is handled? Let us know. Check out DailyTechNewsShow.com. Shout out to patrons at our master and grand master levels, including Jonathan Price, Jeffery Zilx and Ken Hayes. Also thanks to Justin Robert Young. Whether or not you go to the theater or you stay at home watching movies, Justin, we're always glad to have you on the show. I'm always glad to be on here. You know, I've been doing some politics stuff, as everybody knows, politics, politics, politics. But also, there's been a little fun project that I've been doing on the side as this pandemic has obviously affected everybody's lives and people are going a little crazy. I indeed have been going fully crazy. So much so that I've been watching a bunch of Billy Crystal movies from the 90s and I'm now doing a plague diary slash Billy Crystal review podcast called Crystal. You can find it if you already downloaded the jury podcast, it's already popping up on that feed. Otherwise you can go to my SoundCloud, slash Justin Robert Young. That's right, Justin's doing Crystal. Go check it out. Also, thank you everybody who supports us, dailytechnewshow.com slash Patreon. 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Tell a friend dailytechnewshow.com slash live. Robert Herron back tomorrow talking about home theater speaker Epic Grades, Len Peralta be your two talk to you then. This show is part of the Frog Pants Network. Get more at frogpants.com The club hopes you have enjoyed this program.