Lab Weekly - 02/09/2024
Apple Vision Pro at launch; Plus, the latest news about Disney's Epic Games partnership, new joint sports streaming service, and more
Want this newsletter in your inbox every week? Sign up for our mailing list here
What Marketers Should Know About Apple Vision Pro At Launch
Nearly a week post-Vision Pro launch, much ink has been spilled over speculating on how Vision Pro might shift the paradigm of personal computing, entertainment, and digital interaction. Based on this initial wave of reactions and hot takes, some key aspects about this much-anticipated headset — including its primary use case, its user experience, and its impact on the mixed reality ecosystem — are becoming a bit more defined. By extension, its long-term impact on the media landscape is also starting to take shape.
In case you missed it…
What Apple’s Recent App Store Policy Changes Mean for the Gaming Industry
Last week, Apple announced that it is changing its app review policy for in-app experiences, especially pertaining to streaming games. In theory, this change marks a huge shift for those in the cloud gaming business, which could then have knock-on effects for advertisers as well. In reality, however, things are much more complicated.
Outlook 2024: Downstream Effects
Welcome to the IPG Media Lab’s 2024 Outlook. Each year, we round up the ideas that excite us for the next few years: new technologies, market forces, and shifts in consumer behavior that are changing the media landscape. This year, we are particularly interested in how the second-order effects of the pandemic will play out over the rest of the decade.
Disney To Take $1.5 Billion Stake In Epic Games [TechCrunch]
Disney announced on Wednesday that it will take a $1.5 billion equity stake in Epic Games, the maker of Fortnite, making it the company’s biggest bet yet on the gaming space. Per Disney’s press release, this partnership aims to create a "games and entertainment universe" that will feature characters, shows, and games from Disney’s entire content portfolio. Disney will also create a "new persistent universe" within Fortnite to integrate the company's franchise IP. The collaboration will be built using Epic’s Unreal Engine and will be “interoperable” with Fortnite, tying into Epic’s existing online social gaming infrastructure.
Disney has previously collaborated with Epic to bring characters from Marvel, Star Wars, and more to Fortnite as custom skins or in-game items for players to purchase. Obviously, this partnership is far more ambitious in scope than the previous collaborations. Although it is too early to tell how and when exactly this partnership will materialize, the collaboration has already yielded an announcement: Rocket League, which is under the Epic umbrella, is getting a Mandalorian-themed update complete with a Grogu car topper.
Also, it is interesting to note that Disney is very careful in avoiding using the word “metaverse” in describing what this partnership is trying to achieve — and understandably so, considering the negative connotations associated with that concept after the initial hype cycle waned — even though a “persistent universe” for games and entertainment sounds very much in line with some of the common vision that media companies have for the metaverse.
Related: Trevor Noah is producing a new comedy special in Fortnite [THR]; Taylor Swift Eras Tour film to stream exclusively on Disney+ [CNBC]; ‘Moana 2’ set at Disney with surprise 2024 release date [Variety]
Warner, Fox, & Disney To Launch Streaming Sports Joint Venture [Variety]
The sports bundle is back. In a surprising move, Disney, Fox, and Warner Bros. Discovery (WBD) announced that they are teaming up to launch a new joint streaming TV service that combines sports rights. The service is set to launch in the fall, and will bring together live sports content from linear networks owned by the three media conglomerates, such as NFL, World Cup, NBA, and so on, as well as certain direct-to-consumer offerings such as ESPN+ access. Most of the content will be bundled into the respective streaming services from the three companies as well to ensure maximum audience reach.
For the networks, the collaboration allows them to share the skyrocketing costs of sports media rights, which have been rising as sports leagues recognize their content's value for cable companies in an increasingly streaming-led market, and stay competitive against competitor streamers backed by deep-pocketed tech companies, who have also been expanding into live sports content. Essentially, this is Hollywood taking ownership of the most valuable part left of the cable bundle for themselves.
For advertisers, the continued acceleration of sports content moving to streaming platform spell renewed opportunities to reach younger sports fans and cord-cutters. By transitioning sports content to streaming platforms, advertisers are provided with a more targeted approach to reach specific demographics. The data-driven nature of streaming services allows for more nuanced and efficient ad placements, ensuring that marketing efforts are not just widespread but also strategically delivered to the most receptive audiences.
Related: Amazon will invest in Diamond Sports as part of a bankruptcy restructuring agreement [AP News]; Eurovision takes on sports with free live streaming service [Variety]
Meta Plans To Increase Labeling Of AI-Generated Images [Engadget]
Meta plans to increase labeling of AI-generated images across Facebook, Instagram, and Threads, in light of dangerous misinformation and deepfakes ahead of upcoming elections around the world. The social media giant says it is working on tech that can detect content generated by third-party AI tools, aligning with C2PA and IPTC technical standards. Until now, Meta labeled only AI-generated images that were developed using its own AI tools when they appeared on Facebook, Instagram or Threads. While users are expected to label such content themselves, Meta is also working on making it harder for people to alter or remove invisible markers from GAI content.
For marketers, having AI images clearly labeled as artificial is an important step towards making sure Meta’s platforms remain brand-safe. AI-generated images with potentially damaging manipulation of brand assets would be easy to spot and distinguish, thus minimalizing any potential damage to brand images. As the AI-detection technology develops, Meta's initiative could become a benchmark for other social media platforms, promoting an environment where human-made and synthetic media can be clearly differentiated, in order to foster a safer and more trustworthy digital ecosystem for users and advertisers alike.
Related: OpenAI is adding new watermarks to DALL-E 3 [The Verge]; OpenAI and CommonSense Media team up to curate family-friendly GPTs [Engadget]
YouTube says YouTube Premium and Music have a combined 100 million subscribers, Forbes reports. Meanwhile, Variety reports that YouTube TV has now amassed more than 8 million subscribers.
Microsoft says Palworld is the biggest ever third-party Game Pass launch. The ‘Pokémon with guns’ satire game has sold 19 million copies since its January 19 Early Access launch.
Instagram Threads is gaining traction after growth stalled last year, which had some prematurely wondering if the app was already dead. New data from app intelligence firm Appfigures suggests that is not the case: Threads saw 12 million new downloads in December 2023, earning it a No. 4 spot in the Top Charts by downloads on Apple’s App Store. It also saw 16 million downloads on Google Play, which gave it the No. 8 spot.
A new study from Credit Karma polled more than 1,000 U.S. adults and found that 29 % of Americans experience “money dysmorphia,” WWD reports. About 45 % of Gen Z and Millennials are obsessed with the idea of being rich, with 43 % of Gen Z and 41 % of Millennials experiencing the phenomenon. Furthermore, 48 % of Gen Z and 59 % of Millennials said they feel left behind financially.
If you find our insights valuable and would like to have a deeper conversation on technology and media innovations, or need to sound smarter in a client meeting or a pitch, please feel free to reach out to Chelsea Freitas, our VP of Strategy, at chelsea@ipglab.com.
If you liked this edition of Lab Weekly by IPG Media Lab, why not share it?