Automakers Marry Ride Apps, Snapchat Stardom, Brexit?

By Peter Ward     May 27, 2016

Snapchat TV Stars

Which is worth more – a hit show on Snapchat or one on a major TV network? An article in this week’s Bloomberg Businessweek delves into the world of likes, followers, influencers, and a new type of celebrity making fortunes from their social media accounts.

The article focuses on 26-year-old actress Caitlin O’Connor, who appears on a Snapchat TV show called Woman Crush Wednesday on Arsenic TV, a media company broadcasting solely on the messaging app. O’Connor doesn’t get paid to appear on the show, instead she’s rewarded in followers to her social media accounts like Instagram, which she can then use to sell sponsored posts to advertisers.

Arsenic TV, despite not being a featured channel on Snapchat like Buzzfeed, Vice Media or National Geographic, attracts around half a million views for each of its videos over 24 hours. The company has yet to introduce marketing onto the channel, and is still figuring out how to generate revenue effectively.

Social media personalities like O’Connor have been labeled ‘influencers’, because they have so many followers and can attract such a huge number of likes and interactions with their social media posts that brands will pay them to promote their products. Some of the most popular influencers, such as comedian Josh Ostrovsky, known as the Fat Jew, can make as much as $5,000 per sponsored post.

This new branch of the media industry has also spawned divisions inside talent agencies which are dedicated to social media celebrities. The article makes the point that the industry is still in its early stages, and major brands have yet to get involved with influencers at this point, but change is certainly coming.

Automakers and Ride-Hailing Apps Partner Up

Ride-hailing apps are among the most highly valued by investors in the technology sector. And car manufacturers, seeking to capitalize on their popularity, are desperately trying to forge partnerships with the major players.

On Tuesday, Volkswagen announced it was investing $300 million into the Tel Aviv-based ride-sharing app Gett, and on the same day Toyota unveiled a partnership with the market leader Uber. Back in January, General Motors pumped $500 million in Lyft, Uber’s closest competitor.

Automakers are attempting to guard themselves against shifting attitudes to car culture. Startups like Uber and Lyft are giving consumers more reason not to own a car, and manufacturers are becoming increasingly concerned that future generations won’t even need to drive. That is not to say startups are affecting car sales today – auto sales in the U.S. hit record highs in 2015. But automakers are seeking to stay ahead of a rapidly shifting curve.

Toyota’s deal with Uber includes the investment of an undisclosed amount, and new leasing options specifically for Uber drivers. “Ride-sharing has huge potential in terms of shaping the future of mobility,” Shigeki Tomoyama, senior managing officer of Toyota, said in a statement about partnering with Uber. “We would like to explore new ways of delivering secure, convenient and attractive mobility services to customers.”

Brexit Interactive

Will the U.K. leave the European Union? In one month the country votes in a referendum with a simple choice – stay or go? Bloomberg has tracked the likelihood of the ‘Brexit’ in an interactive tracker updated on Wednesday.

Those advocating for the U.K. to stay in the E.U. say that leaving the union would create a ‘DIY recession’, while the pro-Brexit camp has argued that increased immigration is one major reason to leave.

Bloomberg’s Brexit likelihood score shows there is currently a 17% chance of the U.K. voting to leave the E.U. Polls tracked in the interactive also show a consistent lead for the stay votes. A timeline underneath the poll tracker shows key dates, such as the Brussels terrorist attack, and British Prime Minister David Cameron’s announcement of the referendum date.

Another chart shows that as the risk of the Brexit has risen, investor confidence in the British Pound has fallen, and similarly, investors have demanded to be paid more to lend to British companies as the likelihood of a Brexit has increased. The referendum takes place on June 23.

The Week’s Top Headlines

Monsanto rejects Bayer bid, but open to more talks – Greg Roumeliotis, Reuters

Clean-Energy Jobs Surpass Oil Drilling for First Time in U.S. – Anna Hirtenstein, Bloomberg News

Alibaba accounting practices investigated by the SEC – BBC

Microsoft lays off hundreds as it guts its phone business – Tom Warren, The Verge

Greece to avoid default this summer, eyes debt relief – Nicholas Paphitis, AP

Oil prices break $50 barrier – Charles Riley, Matt Egan, CNN Money

France labour dispute: Wave of strike action nationwide – BBC

Ex-McDonald’s CEO says raising the minimum wage will help robots take jobs – Matt McFarland, Washington Post

Billionaire’s revenge: Facebook investor Peter Thiel’s nine-year Gawker grudge – Nellie Bowles, Danny Yadron, The Guardian

Craving Growth, Walgreens Dismissed Its Doubts About Theranos – Christopher Weaver, John Carreyrou, The Wall Street Journal

This entry was posted on Friday, May 27th, 2016 at 4:59 pm. It is filed under Week in Review. You can follow any responses to this entry through the RSS 2.0 feed.