Year: 2020

During a White House briefing on Monday detailing new recommendations regarding public health from the administration’s coronavirus task force and the CDC, President Trump was asked by a member of the press corps about reports that the White House is in “daily” contact with Amazon CEO Jeff Bezos regarding the COVID-19 epidemic.

Trump’s answer wasn’t exactly a clear confirmation, but did seem to indicate that the Amazon founder and chief executive has been working with the White House in some capacity as the situation develops. Upon request for clarification, an Amazon spokesperson confirmed to TechCrunch that “Jeff Bezos has been in contact with the White House” regarding the coronavirus epidemic.

“Well I’ve heard that’s true,” Trump said during the briefing. “I don’t know that for a fact. But I know that some of my people have, as I understand it, been dealing with them or with him. And that’s nice. We’ve had tremendous support from a lot of people that can help, and I believe he was one of them.”

Last week, Fox Business first reported that the White House would be meeting with large tech companies in an effort to help coordinate efforts to contain the virus, and that those meetings would include Facebook, Google, Amazon, Twitter, Apple and Microsoft.

It’s still not clear in what capacity Bezos is working with the White House on the coronavirus pandemic, but Amazon is clearly feeling the impact of the global visual outbreak, including a surge in demand that’s led to it seeking to hire 100,000 additional employees for warehouse and delivery in the U.S.

During a White House briefing on Monday detailing new recommendations regarding public health from the administration’s coronavirus task force and the CDC, President Trump was asked by a member of the press corps about reports that the White House is in “daily” contact with Amazon CEO Jeff Bezos regarding the COVID-19 epidemic.

Trump’s answer wasn’t exactly a clear confirmation, but did seem to indicate that the Amazon founder and chief executive has been working with the White House in some capacity as the situation develops. Upon request for clarification, an Amazon spokesperson confirmed to TechCrunch that “Jeff Bezos has been in contact with the White House” regarding the coronavirus epidemic.

“Well I’ve heard that’s true,” Trump said during the briefing. “I don’t know that for a fact. But I know that some of my people have, as I understand it, been dealing with them or with him. And that’s nice. We’ve had tremendous support from a lot of people that can help, and I believe he was one of them.”

Last week, Fox Business first reported that the White House would be meeting with large tech companies in an effort to help coordinate efforts to contain the virus, and that those meetings would include Facebook, Google, Amazon, Twitter, Apple and Microsoft.

It’s still not clear in what capacity Bezos is working with the White House on the coronavirus pandemic, but Amazon is clearly feeling the impact of the global visual outbreak, including a surge in demand that’s led to it seeking to hire 100,000 additional employees for warehouse and delivery in the U.S.

NBCUniversal announced today that its movie studio Universal Pictures and specialty label Focus Features will be releasing their films in theaters and on-demand, simultaneously.

In other words, it’s eliminating the theatrical window — the period between the time you can watch a movie in theaters and when you can watch in the comfort of your home. (Netflix has been unwilling to abide by this window, which is why the major theater chains weren’t showing “The Irishman” or “Marriage Story.”)

This is in response to the COVID-19 pandemic, which has led many theaters to close or operate at reduced capacity, and forced some communities to adopt more extreme modes of social distancing. As a result, this past weekend, the domestic box office hit its lowest point in at least 20 years.

The release dates of a number of big films — including “Mulan,” “No Time To Die” and Universal’s “Fast & Furious 9” — have already been pushed back, but that doesn’t help films that are already in theaters. And it sounds like Universal has decided that it doesn’t make sense to push back its entire slate.

The first films to fall under the policy are “The Hunt,” “The Invisible Man” (which is very good) and “Emma,” which are currently in theaters, and which will launch on-demand this Friday. Next up is “Trolls World Tour,” which will be available in theaters and on-demand on April 10.

To be clear, this doesn’t mean you’ll be able to watch these movies on a subscription service like Netflix or Disney+ (where “Frozen+” was released ahead of schedule this weekend) — the announcement doesn’t mention NBCUniversal’s planned Peacock streaming service at all.

Instead, it means that the studio will be releasing its films to a variety of on-demand marketplaces like Apple and Amazon, at a suggested price of $19.99. That might seem like a lot to pay for a 48-hour rental (rather than a purchase), but it’s downright affordable compared to the $50 rentals that a startup called the Screening Room tried pitch a few years ago.

“Universal Pictures has a broad and diverse range of movies with 2020 being no exception,” said NBCUniversal Jeff Shell in a statement. “Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home that is both accessible and affordable.”

While Universal’s strategy could be set aside once the current crisis ends, there are also broader questions about how the pandemic will affect the theatrical movie business.

In fact, Rich Greenfield of research firm LightShed Partners recently told The New York Times that this will “hit the accelerator” on the shift to streaming and that “most of the global exhibition business will be in bankruptcy by the end of the year.”

NBCUniversal announced today that its movie studio Universal Pictures and specialty label Focus Features will be releasing their films in theaters and on-demand, simultaneously.

In other words, it’s eliminating the theatrical window — the period between the time you can watch a movie in theaters and when you can watch in the comfort of your home. (Netflix has been unwilling to abide by this window, which is why the major theater chains weren’t showing “The Irishman” or “Marriage Story.”)

This is in response to the COVID-19 pandemic, which has led many theaters to close or operate at reduced capacity, and forced some communities to adopt more extreme modes of social distancing. As a result, this past weekend, the domestic box office hit its lowest point in at least 20 years.

The release dates of a number of big films — including “Mulan,” “No Time To Die” and Universal’s “Fast & Furious 9” — have already been pushed back, but that doesn’t help films that are already in theaters. And it sounds like Universal has decided that it doesn’t make sense to push back its entire slate.

The first films to fall under the policy are “The Hunt,” “The Invisible Man” (which is very good) and “Emma,” which are currently in theaters, and which will launch on-demand this Friday. Next up is “Trolls World Tour,” which will be available in theaters and on-demand on April 10.

To be clear, this doesn’t mean you’ll be able to watch these movies on a subscription service like Netflix or Disney+ (where “Frozen+” was released ahead of schedule this weekend) — the announcement doesn’t mention NBCUniversal’s planned Peacock streaming service at all.

Instead, it means that the studio will be releasing its films to a variety of on-demand marketplaces like Apple and Amazon, at a suggested price of $19.99. That might seem like a lot to pay for a 48-hour rental (rather than a purchase), but it’s downright affordable compared to the $50 rentals that a startup called the Screening Room tried pitch a few years ago.

“Universal Pictures has a broad and diverse range of movies with 2020 being no exception,” said NBCUniversal Jeff Shell in a statement. “Rather than delaying these films or releasing them into a challenged distribution landscape, we wanted to provide an option for people to view these titles in the home that is both accessible and affordable.”

While Universal’s strategy could be set aside once the current crisis ends, there are also broader questions about how the pandemic will affect the theatrical movie business.

In fact, Rich Greenfield of research firm LightShed Partners recently told The New York Times that this will “hit the accelerator” on the shift to streaming and that “most of the global exhibition business will be in bankruptcy by the end of the year.”

Schools around the country are closing, and while some universities are able to switch to online classes, that’s not really an option for K-12 students, many of whom lack the necessary equipment or connection at home to do so. Legislators and the FCC are hoping to fix at least part of the problem with an emergency distribution of Wi-Fi hotspots to needy students.

In a letter to FCC Chairman Ajit Pai, a group of Democratic and Independent lawmakers led by Senator Ed Markey (D-MA) urged the agency to use funds earmarked for education to immediately help kids who lack the connectivity they need.

“The coronavirus pandemic has shone a bright light on the ‘homework gap’ experienced by 12 million students in this country who do not have internet access at home and are unable to complete their homework,” they write. “We believe that the FCC can use its emergency powers… to provide home wireless service to existing school devices and hotspots for students who lack internet access at home.”

Many schools and libraries have devices like Wi-Fi hotspots and other internet-enabled devices available for loan or rental, but the demand and attendant costs could be very high if they hand them out for use as students’ main source of connectivity. The suggestion by Markey and the others is to cover these costs to get these resources distributed as quickly and simply as possible.

The issue is that the funds to do so are locked up in what’s called the E-Rate program, which is an internet connection subsidy meted out to schools and libraries, and isn’t really intended for this kind of short-term use. But as the letter says, the legislators believe it is within the FCC’s powers to override the day-to-day E-Rate rules and dedicate some of the $2 billion left in its budget to this purpose.

They’re not just speculating wildly, either — many of these Senators are part of the FCC’s oversight committee, and Sen. Markey is actually the person who created the E-Rate program to begin with back in the ’90s. With this kind of assurance, the FCC may find itself with a free hand to address the crisis in the way they describe.

“This swift, immediate action would help ensure that all students can remotely continue their education during the current public health emergency,” the group writes. “We call on you to use the FCC’s emergency powers to narrow the homework gap during this crisis, and we look forward to finding a long-term solution when the coronavirus subsides.”

Commissioner Jessica Rosenworcel supports the approach, tweeting earlier today that “The FCC can fix this #homeworkgap with a program for schools to loan out wifi hotspots. It needs to do it now.”

The letter was co-signed by Senators Dick Durbin (D-IL.), Chris Van Hollen (D-MD), Tammy Baldwin (D-WI), Kamala Harris (D-CA), Kirsten Gillibrand (D-NY), Jack Reed (D-R.I.), Catherine Cortez Masto (D-NV.), Patty Murray (D-WA), Mazie Hirono (D-HI), Ron Wyden (D-OR), Elizabeth Warren (D-MA), Angus S. King, Jr. (I-ME), and Margaret Wood Hassan (D-NH).

Apple and Goldman Sachs will allow Apple Card holders to skip their March payment without incurring interest by signing up for a Customer Assistance Program, Apple is informing its customers. Existing cardholders were alerted to the option via an email sent out over the weekend which explains that, in light of the challenges posed by the COVID-19 situation, some customers may have trouble making their usual payment.

“Apple Card is committed to helping you lead a healthier financial life,” the email said.

To join the Customer Assistance Program, Apple Card customers can either click the link in the email (here) or message or call an Apple support rep directly through the Apple Wallet app.

The process of joining the program via iMessage is fairly simple. After clicking the link, an automated message responds: “We understand how difficult this could be for you, and we want to help.”

You’re then directed to connect with Goldman Sachs to continue enrollment.

After clicking on the link that’s sent, you receive a second automated iMessage text that explains what the Customer Assistance Program offers — specifically, a way to skip a payment without incurring interest. It then asks if you’d like to join.

Once you request to join, Apple says you can expect to receive a confirmation email in the next few days when your enrollment is complete. No further action is needed.

Though the sign-up process is straightforward — and even easier through iMessage than having to place a call — it’s harder to get questions about the program answered via iMessage chat. In a test, we asked the Apple chatbot a question, and it said: “Let me get you to an Apple Specialist at Goldman Sachs.” That was over an hour ago, as of the time of writing, and no support rep has yet to answer.

Getting personal support via the provided phone number (1-877-255-5923) was much easier, despite what one rep described as a “surge” in call volumes. After you’re informed of the option to join the program via the automated phone system, you can opt to press 2 to connect to a support rep directly. Surprisingly, there was little hold time as of this afternoon — a rep answered almost right away.

We understand the program doesn’t have any sort of limit in terms of the balance on your card at the time you’re requesting a waiver. But reps couldn’t provide any information as to how asking for a waiver would impact your credit report or score. During natural disasters, however, there’s a process for lenders to flag customers who have been affected so non-payments won’t negatively damage their credit.

Reps also couldn’t say if the program would continue into April, as that’s not something that’s been decided yet.

Apple Card isn’t the only card waiving payments.

Citi said earlier this month it had assistance programs in place for customers, including credit-line increases and collection forbearance. PNC Bank, Capital One, Bank of America, Chase, Discover, U.S. Bank, Wells Fargo, Fifth Third, and others, also recently alerted customers about their respective offers to help during the coronavirus outbreak.

Amex told us it’s helping customers, too, when asked.

“American Express is ready to assist our customers having financial difficulties due to the effects of COVID-19. They can reach our Customer Care Professionals anytime by calling the number on the back of their card or through our digital servicing channels – online chat or the Amex app,” a spokesperson said. The company said it would work with customers individually on things like waiving late fees, return check fees, and interest charges.

“We have several financial hardship programs offering a range of short-term to long-term assistance,” they added.

According to NerdWallet’s guide to protecting your finances during the coronavirus outbreak, several other lenders and credit card issuers may be working with customers on an individual basis, too.

All major indices fell sharply Monday as the COVID-19 pandemic continued its spread, prompting airlines to slash capacity and  state and local officials to close schools, businesses like restaurants and bars.

Stocks accelerated their fall in the waning minutes before the markets closed Monday as Wall Street reacted to a White House press conference with President Donald Trump National Institutes of Allergy and Infectious Diseases head Anthony Fauci, and Deborah Birx coronavirus response coordinator for White House coronavirus task force.

The task force recommended people limit the size of gatherings to less than 10 people and that non-essential businesses close for at least the next 15 days, but hinted that this could last into July.

The Dow Jones and the S&P 500 suffered their worst percentage drop since 1987. The Nasdaq fell more than 12% and the Russell 2000 index of small caps fell 14.3%

All industries were hit on Monday with double-digit percentage losses, including real estate, energy financial, technology and travel.

At the close, markets were down:

• The Dow Jones was down 2,998.97 or 12.93%, to 20,188.52
• The Nasdaq was down 970.28 points, or 12.3%, to 6,904.59
• The S&P 500 was down 324.95 points, or 11.98%, to 2,386.13

The markets had a rough start in the morning. After the Federal Reserve cut its interest rates to near zero at the urging of the president, all of the indexes posted major losses and for the third time in the past two weeks, the Dow hit its emergency circuit breaker as the market opened; the S&P also halted trades.

Airlines

Even as equities fell, Trump tried to ease concerns noting that the government was committed to backing industries like the airlines and that the stock market would eventually rebound.

“Once this virus is gone I think that you’re going to have a stock market like nobody has ever seen before,” Trump said in a press conference prior to the market close Monday.

Wall Street did provide a boost to airlines in response to the government’s decision to support airlines. American Airlines saw shares close up 11% to $15.92.

“It’s not their fault, in fact they were having a record season,” Trump said when asked if the government should back the airlines industry. “We’re going to be backing the airlines.”

Disney surprised the media industry on February 25 when it announced that longtime CEO Bob Iger had replaced himself with executive Bob Chapek. The abruptness of the news and the choice of successor, combined with the company’s explanation that it was a long-planned transition, didn’t seem to add up.

It now makes more sense. It appears evident in hindsight that Iger saw the dire financial impact of the coronavirus sooner than other American chief executives and took decisive action. The most important task of Disney’s CEO for the next two years will be rescuing Disney, not growing it. Iger made a point to end his 15-year reign on a high note. Chapek was put in charge as the Magic Kingdom’s wartime leader.

Disney’s stock multiplied from $30-40 per share during 2011 to $148 this past December, capped with a phenomenal launch of its Disney+ subscription video streaming service. Then from January 2 to February 25 as the virus impacted China and Disney shut down its Shanghai and Hong Kong theme parks, the stock slid from $148 to $128. Between February 25, the day of Iger’s announcement, and this morning, the stock dropped a further 29% to $92. That’s a 38% plummet in the company’s valuation in ten weeks.

As head of the company’s Parks, Experiences, & Products division, Chapek represents the old school businesses of Disney. These business lines sustained healthy growth through last year but Iger had spent the last couple years emphasizing that Disney’s future sits with its subscription video streaming services (Disney+, Hulu, ESPN+, Hotstar) overseen by Kevin Mayer, who previously spearheaded the company’s incredibly successful M&A strategy (including acquisitions of Pixar, Marvel, and LucasFilm).

With Disney managing the impact of the crisis in China on its parks beginning in January, Iger likely foresaw the global spread of coronavirus and the economic damage sooner than most other American chief executives. Disney will be hit hard.

While it is a powerhouse in the media industry, roughly 34% of Disney’s revenue (and 28% of its operating income) comes from its parks, cruises, and resorts. The cruises and parks could be shuttered for months, and health-weary consumers dealing with an economic downturn will be slow to return to them or to the company’s hotels.

With cinemas closed or sparsely filled, potentially even into the summer months (peak season for cinemas), the global box office will be much smaller this year. That means a substantial revenue decrease for Disney’s Studio Entertainment division (16% of revenue and 19% of operating income) which accounts for one-third, or $11 billion, of the entire box office market.

The largest division of Disney by revenue (41%) and operating income (42%) is its TV networks. While hundreds of millions of people staying home will increase viewership in the short term — notwithstanding ESPN, given major sports leagues paused or canceled their seasons — TV advertising revenue shrinks during market downturns as brands reduce their marketing budgets.

After launching in November, the Disney+ streaming service hit 28 million subscribers in January. People staying home with their families during the coronavirus crisis should be a boost to its subscriptions, particularly with children home from school, but the venture isn’t close to profitability (2024 has been its goal for that).

Disney+ is a long-term investment that’s currently draining cash from a company where cash is about to get much tighter. Disney’s streaming division had losses of $740 million and $693 million during the last two quarters and estimated its investment in original content for Disney+ would run $1-2 billion annually. That ongoing investment could be undermined by reduced profits from its other divisions.

The fundamentals of Disney as a business have been strong, but it is in a rough position as a global health crisis and an almost certain global recession take the wind out of its sails. This starts a new era for the company’s leadership and it made sense for Iger, who planned to step down in 2021 anyway, to end his tenure on a high note in February — capped with the book tour for his memoir and release of his Masterclass course — while putting the man who oversees the most threatened part of the company in charge of leading the response.

Streaming services remain the heart of Disney’s long-term future so it remains critical they continue to thrive under highly capable leadership while the CEO focuses on rescuing the established businesses that provide the company’s income in the present. Mayer may well have his chance at the CEO role when the rest of the company stabilizes again in the future, but Chapek made the most sense as the commander holding Disney together in this crisis.

Amazon is looking to hire 100,000 new employees for its warehouse and delivery operations in the U.S. to keep up with demand during the current coronavirus outbreak, the company said today.

Workers in its U.S. fulfillment centers will also get an extra $2 per hour through the end of April. Currently, Amazon pays $15 per hour for entry-level jobs in its fulfillment centers. In addition, the company will also temporarily increase pay by £2 per hour in the UK and approximately €2 per hour in many EU countries. In total, Amazon expects to spend about $350 million in increased compensation across the U.S., Europe and Canada.

“As the COVID-19 pandemic continues, Amazon and our network of partners are helping communities around the world in a way that very few can—delivering critical supplies directly to the doorsteps of people who need them,” writes Dave Clark, Amazon’s Senior VP of Worldwide Operations. “Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues. We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year.”

During this current crisis, as people are urged to say at home as much as they can, demand for delivery is obviously at an all-time high. Amazon’s logistics operation is already straining under the current demand and often unable to offer same-day deliveries (or even any deliveries in the next couple of days) through Amazon Prime and Fresh in many places in the United States. At the same time, Amazon has also started running out of some household staples, including toilet paper and other daily necessities, as people prepare to stay at home for a prolonged period of time.

Just last week, Amazon also said it would provide up to two weeks of pay to all Amazon employees diagnosed with COVID-19 and established a relief fund of $25 million to help its independent delivery service partners and drivers.

In today’s press briefing, President Trump also noted that Jeff Bezos has offered his help, though it’s unclear in what capacity.

Amazon is looking to hire 100,000 new employees for its warehouse and delivery operations in the U.S. to keep up with demand during the current coronavirus outbreak, the company said today.

Workers in its U.S. fulfillment centers will also get an extra $2 per hour through the end of April. Currently, Amazon pays $15 per hour for entry-level jobs in its fulfillment centers. In addition, the company will also temporarily increase pay by £2 per hour in the UK and approximately €2 per hour in many EU countries. In total, Amazon expects to spend about $350 million in increased compensation across the U.S., Europe and Canada.

“As the COVID-19 pandemic continues, Amazon and our network of partners are helping communities around the world in a way that very few can—delivering critical supplies directly to the doorsteps of people who need them,” writes Dave Clark, Amazon’s Senior VP of Worldwide Operations. “Getting a priority item to your doorstep is vital as communities practice social-distancing, particularly for the elderly and others with underlying health issues. We are seeing a significant increase in demand, which means our labor needs are unprecedented for this time of year.”

During this current crisis, as people are urged to say at home as much as they can, demand for delivery is obviously at an all-time high. Amazon’s logistics operation is already straining under the current demand and often unable to offer same-day deliveries (or even any deliveries in the next couple of days) through Amazon Prime and Fresh in many places in the United States. At the same time, Amazon has also started running out of some household staples, including toilet paper and other daily necessities, as people prepare to stay at home for a prolonged period of time.

Just last week, Amazon also said it would provide up to two weeks of pay to all Amazon employees diagnosed with COVID-19 and established a relief fund of $25 million to help its independent delivery service partners and drivers.

In today’s press briefing, President Trump also noted that Jeff Bezos has offered his help, though it’s unclear in what capacity.