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CFRA director, equity research Kenneth Leon and New Street Research managing partner Jonathan Chaplin debate whether Disney or rival Comcast is the better stock for investors to hold on ‘The Claman Countdown.’
Disney began its second round of layoffs last week and several leaders in streaming were reportedly cut loose as CEO Bob Iger bets big on revamping Disney+ service while saving billions in operating costs.
Disney's second round of layoffs began on Monday and the company was expected to cut several thousand jobs through Thursday, sources familiar with the matter told Reuters.
In this Aug. 8, 2017, file photo, The Walt Disney Co. logo appears on a screen above the floor of the New York Stock Exchange. Disney is working on sequels for its “Toy Story,” “Frozen” and “Zootopia” franchises as the company concentrates more on br (AP Photo/Richard Drew, File / AP Images)
Iger, who returned to the entertainment machine in November, said during an earnings call in February that the company planned to trim its payroll by 7,000 employees under a new restructuring plan that included three rounds of layoffs.
DISNEY LAYING OFF THOUSANDS IN SECOND ROUND OF JOB CUTS
Iger said the company was targeting $5.5 billion of cost savings across the company with the restructuring, and under the strategic reorganization, there will be three core business segments including Disney Entertainment, ESPN and Disney Parks, Experiences and Products.
Disney+ is part of the Disney Entertainment division and is also a lucrative aspect of the company.
Attendees are reflected in Disney+ logo during the Walt Disney D23 Expo in Anaheim, California on September 9, 2022. (PATRICK T. FALLON/AFP via Getty Images / Getty Images)
Bloomberg reported on April 27 that Jerrell Jimerson, Sean Curtis and Jaya Kolhatkar, who held leadership roles in product, technology and data divisions of Disney+ and Hulu were let go during the second round of layoffs.
BOB IGER SAYS HE WAS 'VERY, VERY SURPRISED' BY HIS RETURN TO DISNEY
Also let go were members of marketing a business development teams for the streaming division.
Iger has called streaming a "No. 1 priority," and he is focused on improving the product that he introduced in 2019.
FILE – The Disney+ streaming log-in screen is displayed on a television, Monday, Aug. 9, 2021, in East Derry, N.H. Walt Disney reports quarterly financial results reports quarterly financial results Tuesday, Nov. 8, 2022. (AP Photo/Charles Krupa / AP Newsroom)
When the service launched in November 2019, it gained 10 million subscribers in a single day.
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The CEO walked away from his role in the company in 2020, and since then the service has grown its subscriber numbers substantially.
When Iger stepped away, Bob Chapek stepped in and spent billions on the production of original series to attract even more subscribers to the streaming platform.
One of the decisions Chapek made, Bloomberg reported, was giving his deputy Kareem Daniel and technology executive Michael Paull authority on how projects are released.
Iger returned in November 2022, and reversed many of Chapek’s decisions, leading to the exit of Paull and Jeremy Doig, the streaming chief technology officer.
The publication added that the majority of the team that created Disney+ is now gone, just four years after it launched.
Disney did not immediately respond to inquiries from Fox News Digital about the report and layoffs.
Last week’s round of layoffs was the second out of three, with the first occurring in March.
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Iger said in a memo to employees in March that the next two rounds would take place in April and "before the beginning of the summer."
BVNK co-founders (L to R) Donald Jackson, Jesse Hemson-Struthers and Chris Harmes, at the company’s San Francisco Office.
BVNK
Citi has invested in stablecoin infrastructure company BVNK, the startup told CNBC on Thursday, as big U.S. banks ramp up their presence in the cryptocurrency and digital asset space.
Stablecoins are a type of digital asset pegged to a fiat currency and backed by real-world assets like bonds. The two biggest are USDC and Tether, which issues USDT.
BVNK’s core technology is effectively a payments rail to facilitate transactions in stablecoins globally, allowing customers to move money from fiat into the cryptocurrency and back.
The company declined to disclose the sum that Citi invested or its current valuation. But Chris Harmse, co-founder of BVNK, told CNBC in an interview that its valuation is higher than the $750 million that was publicly disclosed at its last funding round.
The investment was made by Citi Ventures, the venture capital arm of Citigroup.
Stablecoins, once just a tool for people to trade quickly in and out of other cryptocurrencies like bitcoin, are now being seen as a potential key tool for cross-border transactions due to the speed to send and receive them, the low cost and 24/7 settlement.
There were nearly $9 trillion worth of stablecoin transactions over the last 12 months, according to Visa, while the current valuation of all stablecoins in existence stands at over $300 billion, Coinmarketcap data shows.
U.S. growth
BVNK’s Harmse said the company is seeing momentum, especially in the U.S., which has been its fastest-growing market over the last 12-18 months thanks to what is seen by the crypto industry as a more favorable regulatory environment.
Earlier this year, the U.S. passed the GENIUS Act, a bill designed to regulate and bring more clarity to the stablecoin market.
“You are seeing with the GENIUS Act coming through, and regulatory clarity, an explosion of demand for building on top of stablecoin infrastructure,” Harmse told CNBC.
BVNK’s technology can be used by customers to pay suppliers, contractors or merchants in other countries. The company is looking to expand its customer base, including to digital-only banks or neobanks that may use stabelcoins for their core checking account, Harmse said.
Read more CNBC tech news
The co-founder declined to get into the specifics of the company’s work with Citi as it’s “too early to announce” but noted the Wall Street bank has been bolstering its cross-border payment services.
“U.S. banks at the scale of Citi, because of the GENIUS Act, are putting their weight behind … investing in leading businesses in the space to make sure they are at forefront of this technological shift in payments,” Harmse said.
Citi signaled its step up into crypto this year. CEO Jane Fraser said in June that the company is considering issuing its own stablecoin and is interested in offering custodian services for crypto assets.
BVNK has “dipped in and out of profitability” as the company has invested in growth, Harmse said, adding that the company is on track to be profitable next year. BVNK is also backed by Coinbase and Tiger Global.
The startup is playing in a highly-competitive space with other newcomers like Alchemy Pay and TripleA and established players like Ripple trying to get a slice of the cross-border digital money pie.
Wall Street welcomes crypto
Citi isn’t alone in embracing digital assets when it comes to major U.S. banks and financial institutions.
JPMorgan Chase launched its own stablecoin-like token called JPMD this year. The bank also made the decision this year to allow clients to buy bitcoin.
Banks have been looking at how to use blockchain, a technology originally developed to underpin bitcoin, to lower the cost and speed up transactions of many kinds. Part of this involves “tokenization” which broadly means the idea of issuing a digital token that represents something such as a deposit.
Bank of New York Mellon, for example, is exploring tokenized deposits. HSBC has already launched a tokenized deposit service.
Ferrari has released details about its approach to powertrain sounds with its first electric vehicle, the Elettrica, and I am intrigued. If well-executed, I even think it might convince some petrolheads to give EVs a try.
In short, Ferrari is rejecting fake engine noise for its first EV and opts for an ‘authentic’ yet improved electric powertrain sound directly generated by the electric motors.
Today, Ferrari released the specs and tech details of its first all-electric vehicle, the Elettrica.
I’ve already posted a detailed article going through the specs, as well as the powertrain and chassis technologies developed by Ferrari for this impressive next-gen EV.
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But I wanted to write a separate article specifically about Ferrari’s approach to sound in its first all-electric car because I think its strategy is exciting. I even believe that it could convince some hardcore petrol heads who reject EVs to give them a real shot.
For years, legacy automakers have struggled with how to engineer an auditory experience for EVs that replaces the roar of combustion.
Whether you like them or not, engine sounds are essential, especially in performance vehicles. They are part of the identity of certain cars – a sort of signature. They can be emotional. They can give a sense of power.
But beyond that, they are information. The pitch, volume, and texture of the engine sound provide critical, real-time feedback to the driver about RPM, load, and the car’s health.
Some electric automakers are using curated soundscapes (like BMW with Hans Zimmer) or trying to mimic V8s (like Dodge with its “Fratzonic Chambered Exhaust“). I don’t have a problem with those as long as they are optional, meaning you can turn them off, as I’m not a fan of cars making fake noises.
Other automakers are simply letting the natural sounds of the electric motors exist. There’s nothing wrong with that. However, considering that electric motors produce minimal sounds, which are then trapped inside a metal casing, you rarely hear anything significant, especially in modern vehicles with quiet cabins and even active noise cancellation.
For most EVs, this is not a problem, but for a performance electric vehicle, it does feel like something is missing.
Ferrari’s approach to sound in its first electric car
Ferrari’s solution is a novel one, focusing on what it calls an “authentic voice unique to the electric engine.”
I attended Ferrari’s tech day for the Elettrica, and Antonio Palermo, the brand’s head of NVH (noise, vibration, harshness) and sound quality, gave an excellent presentation about how the company approaches the problem.
He said that there was a lot of internal debate at Ferrari about how to manage the powertrain:
It took us a long time to reach a consensus about what sound to get, but it was clear that we wanted something authentic.
Again, the problem with being authentic with an electric vehicle is that if the powertrain and packaging team did their job right, there’s little sound to play with.
An electric guitar inspired Palermo’s solution. Unlike an accoutic guitar, an electric drive unit doesn’t a hollow body or sound hole to convert the string vibrations into audible sound.
Much like an electric guitar, Ferrari’s solution involves capturing and amplifying the actual vibrations of the drivetrain components. The automaker explained:
A high-precision sensor installed on the rear axle picks up the frequencies of the powertrain, which are amplified and projected into the surroundings as with an electric guitar… the sensor used is an accelerometer installed at a very rigid point on the inverter casting.
This approach, which utilizes an accelerometer to capture solid-borne vibrations from the drive unit, enables Ferrari to amplify a sound that matches exactly what the motors produce – making it authentic.
Ferrari insists the sound will only be used when “functionally useful” to provide feedback to the driver and will be directly tied to torque requests.
In normal driving situations, silence is preferred to maximise acoustic comfort, but when the driver requests torque from the powertrain by accelerating or uses the shift paddles in manual mode, the sound activates to offer dialogue and connection between driver and car.
Palermo added that the latency is non-perceivable to the human ear. In spirited driving, you will be able to hear the motor accelerate, regen, or even decouple since front motors of the Elettrica are equipped with a disconnect to turn the vehicle into a rear-wheel-drive.
The entire system was reportedly developed in-house, giving Ferrari complete control over the vehicle’s final acoustic signature.
Electrek’s Take
This is a fascinating and, frankly, refreshing move from Ferrari. We’ve seen numerous gimmicks from legacy automakers attempting to make their EVs feel and sound like the gas cars they are replacing. Most of them fall flat because they are fundamentally inauthentic.
Ferrari’s “electric guitar” approach is different. By choosing to amplify the real sounds of the electric motor and inverter based on the real vibrations, they are embracing the new technology rather than hiding it. They are making a confident statement that an electric powertrain can be emotionally engaging on its own terms, without having to pretend to be something it’s not.
It’s a brilliant piece of engineering that stays true to the brand’s performance-focused ethos, where sensory feedback is a critical part of the driving experience. And it’s optional. If you prefer a completely silent drive, you can disable it.
The purists who were worried that Ferrari would lose its soul in the EV transition should be encouraged by this.
Ultimately, it could even convert some of those petrol head purists who can’t stand a car experience without the smell of gasoline and the roaring sounds of combustion.
However, we need to hear it first. Everyone who heard it at Ferrari seemed impressed, but they are obviously biased. The test drivers are reportedly enjoying the audio feedback, but the brand is staying secretive.
As I reported in my full article about the Ferrari Elettrica, the automaker is doing the unveiling in three parts. This is just the first part, covering specs and technical details. We will have to wait for the second (Q1 2026) or third (Q2 2026) part to hear about the vehicle.
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