The business and consumption of television as we know it is going to change forever. From digital living rooms to newsrooms, stay tuned for a personalized, multi-screen experience.
We live in a world of constant disruption. Technological advancements have turned everything on its head. Companies like Uber, Airbnb, YouTube and Facebook have shaken the incumbents in their respective industry, paving the way for new business models that value efficiency and instant gratification. Fintechs are the next group of relatively new startups to disrupt one of the world’s largest sectors – banking and finance. And while every industry in the world is impacted by these technological enhancements and changes in consumption, media has probably changed the most.
Before we get into the changes impacting the evolution of television news, it’s important to take stock of the market. In sub-Saharan Africa, the pay-TV landscape is dominated by DStv. Hybrid services that bundle over-the-top (OTT; content delivered over the internet) services with digital terrestrial and IP TV like Kwese and Wananchi Groups’ Zuku are smaller in terms of subscribers, but are making inroads across the continent.
The deadline for the switch-over to Digital Terrestrial Television (DTT) has passed in most markets in Africa, but remains an opportunity for growth and channel development. Netflix and Amazon Prime have been globally available since 2016 and are growing subscriber numbers in emerging markets, competing directly with pay-TV providers, while Facebook, Instagram and Snapchat are investing in scripted short-form programming. With the abundance of choice, for both free and paid content, the share of screen-time is getting increasingly more fragmented.
PwC, a professional services firm, publishes a report, Entertainment and Media Outlook: An African Perspective, each year. The report does a good job of measuring the pulse of media across the continent. PwC predicts that the total TV market in South Africa, which is the largest TV market on the continent, is going to exhibit reasonably strong growth. They predict that the pay-TV sector will add 1.5 million households by 2022, contrary to the decline in pay-TV viewing predicted by media pundits as a result of the availability of OTT alternatives like Netflix in South Africa. TV advertising remains an important part of the overall TV market, but accounts for just under a quarter of the sector’s total revenue.
In West Africa, Nigeria’s TV market grew year over year by 17.1%, despite a challenging economic climate. Again, pay-TV dominates revenues in the sector, commanding 75% of total revenues while advertising accounts for just 19%. Poor broadband penetration and availability has delayed the onset of the internet video segment, extending the life of linear TV in Nigeria.
How is content creation changing?
Industry leaders like Netflix have brought in data analytics for better content creation and acquisition. The Economist published a cover story on Netflixonomics in June where it reported Netflix has identified some 2,000 “taste clusters” by watching its watchers. An analysis of how well a program will reach, draw and retain customers in specific clusters lets Netflix calculate what sort of acquisition costs can be justified for it. Historically, the calculus of whether a show or film is worth making was based on relatively subjective criteria, and, on the intuition of people experienced in content creation. Data will become increasingly important in determining what to produce.
Advancements in Artificial Intelligence (AI) and machine learning are going to play an important role in augmenting the abilities of content producers, particularly journalists. AI-driven computer vision tools, speech recognition and natural language processing, when combined with a real-time content feed can help a content producer with creating enhanced visualization and representations of data, fact-checking, and guest identification cataloguing.
AI is enhancing the newsroom in many other ways. From streamlining media workflows to automating mundane tasks, enabling journalists to focus on what they do best – reporting. AI is also being used to improve turnaround times by allowing content creators to crunching more data. Research can be performed much faster, information can be correlated quickly and efficiently. Facebook is using AI to detect word patterns that may indicate a fake news story.
One of the largest cost components within a television news station was the cost of connectivity. Historically, connectivity for a TV channel was largely based on expensive satellites. Reliability was also an issue; bad weather could impact the quality of the signal. Portable cellular backpack solutions like LiveU, which uses the internet through mobile cellular networks, bound with other networks, like wireless internet have rendered legacy satellite uplink systems redundant and obsolete. Robotic cameras used within news studios take up less space and don’t require dedicated personnel to operate them. Integrated hardware solutions that incorporate all the elements of live TV in a single box have reduced the cost to operate a TV channel.
What are the transmission protocols of the future going to look like?
How people receive content is becoming just as important. IP-delivered content opens new doors in how advertisers can target consumers. As TV becomes more digitalized and smarter, the line between TV and OTT is blurring. Advertisers and ad agencies will eventually merge their TV ad digital planning and measurement.
It’s no secret that video on demand and other internet video services lag pay-TV across Africa. This is largely due to the availability and affordability of broadband internet. While this remains a challenge in the short-to-medium term, providers of telecommunication services are entering the content distribution space.
How will consumption patterns change in the future?
We’ve covered how data informs decisions around content production. Data is also used in the consumption side of the equation, particularly when it comes to delivering personalized content recommendations. Netflix does this particularly well with its content recommendation algorithms. This becomes important when dealing with massive amounts of content, like for example, user-generated content from social media sites. On any given day, over a billion hours of video are watched on YouTube. 70% of this content is recommended by YouTube’s algorithms. Going down the rabbit hole of YouTube is something most of us are familiar with; your well-intentioned first click to a video someone sent you leads to a three-hour binge from videos about political conspiracy theories to a clip on the antics of various house cats.
The recommendations are personalized, and they’re the first thing you see when you sign onto the site or YouTube app. They help you find the needle in the haystack of the millions of videos on YouTube that you actually want to watch.
The shift to second screen viewing has already taken place, with viewers often multi-tasking, watching Netflix and engaging with their friends on social media. There has been a lot of buzz around augmented reality and virtual reality. If you look past the gimmickry and hype, there hasn’t been a tectonic shift with either technology.
Wherever the future of television takes us, you cannot understate the importance of quality content, whether user-generated or scripted, free, paid or ad-supported. Almost all content will move towards a multi-screen environment with a highly personalized stream of content, rendering channels obsolete. The television will be just one of the many screens available to audiences. News production will become more efficient to produce, insightful when consumed and ubiquitous in its availability.
– The writer is the Managing Director of CMA Investment Holdings.
Data Is The New Gold
The city of Johannesburg was established in 1886 after the discovery of gold. Gold is a mineral that has been deemed valuable for thousands of years. It does not rust and it is malleable.
Gold has been used in jewelry as well as in the semiconductor industry to build electronic circuits. You can bury gold for hundreds of years and the worst it can get is accumulate dust.
Because of its durability, gold has been used to store value in the form of money. In many countries, printed and minted money used to be linked to stored gold, which was reserved in the central bank. This way, central banks used to print as much money as they had gold reserves. There had been many attempts to move away from the gold standard beginning in the United Kingdom in the 1920s.
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However, the first successful move from the gold standard was in the 1970s during the Nixon Administration in America.
At this time, the United States (US) ran out of gold and moved from the gold standard and floated the US dollar. Floated currency is regulated by the laws of demand and supply and is closely linked to the economic productivity of a country.
The idea of gold as the most important economic asset has passed. Instead of entrepreneurs going to California to look for gold, as they did in the past, they now go to Silicon Valley to create companies that exploit the acquisition and sharing of data.
Facebook is one such company that has connected the world and expanded our friendships – although, in my opinion, it lowered the quality of those friendships.
Facebook’s most valuable asset is not the software that connects people, which can easily be replicated, but the data of the over two billion active users it connects.
The most valuable asset of Uber, the ride-hailing service that does not own a single taxi, is the data of the people who use it. The prime asset of Google, the largest library, which owns no physical library, is the index that takes customers to their desired websites.
Therefore, the new valuable asset is not gold but it is data. Data has become the new gold! With a population of 1.3 billion people and a total purchasing power parity gross domestic product (GDP) of $6.74 trillion, the population of Africa is growing at the rate of 2.6%.
Much of Africa’s demographic is youthful. Much of this population is increasingly connected to the internet.
In 2017, Facebook had 170 million subscribers, which constitutes approximately 15% of the total population of Africa and this subscription is growing. Companies such as Google reportedly give accounts in exchange of subscriber data. These companies have been reported to have sold this data to entities such as advertisers, political parties etc. The exchange of personal data for an account is unfair trade because the value of personal data is far greater than the value of an account.
What do we do to commercialize the vast African database?
Firstly, we need to develop technological capacity to gather, process and monetize the African database. To achieve these, we ought to improve and expand our educational institutions, paying attention to the development of programs in data science. We need to embed data science subjects such as data analytics and software engineering into primary, secondary and tertiary education.
Governments and the African Union ought to expand projects such as the Deep Learning Indaba as well as the African Institute of Mathematical Sciences that are developing mathematics, machine learning and artificial intelligence expertise in Africa.
To gather data, we need to politically organize ourselves to create economies of scale. Regionally, organizations such as the Southern African Development Community (SADC) and Economic Community of West African States (ECOWAS) should create regional data banks that collect, protect and store regional data.
Continentally, the African Union should coordinate data gathering and develop data protection policies. We need to create laws and policies that regulate data nationally, regionally and continentally.
– Tshilidzi Marwala is a professor and Vice-Chancellor and Principal of the University of Johannesburg. He deputizes President Cyril Ramaphosa on the South African Presidential Commission on the Fourth Industrial Revolution.
Everything You Need To Know About The Future Of Pesticides And Bees
Seeing a bee in the city often results in panicked humans running away out of fear of being stung. But the bees are likely less interested in humans than they are in the wildflowers they’re circling around, which are likely a safe and pesticide-free place for the bees to feed. Contrary to what we might assume, researchers have found that urban bees tend to live healthier lives than rural ones — they reproduce more, have more food stores, encounter fewer parasites and live longer.
Pesticides are a tricky topic — while they are great for the crops they are meant to protect, they harm the bees that agriculture relies on. Their use sparked debate at the Forbes 2019 AgTech Summit, where beekeepers discussed the impact of these chemicals for bees, and the potential research still needed to understand their effects, and how technology, urban settings and regulation will affect the future of pollinators. Here’s everything they said — and you need to know — about how pesticides affect bees.
What are pesticides, and how do they affect bees?
Farmers have traditionally used pesticides to control pests like weeds, insects, mold and mildew and animals like rats and mice, according to the National Institute of Environmental Health Sciences. But they weren’t supposed to affect bees, who are critical to our food system — their pollination impacts every third bite of our food, according to the Pesticide Action Network, a nonprofit that challenges pesticide use in farming.
The most harmful chemicals to bees are known as neonicotinoid pesticides. Scientists have found that bees can be poisoned by flying through a field sprayed with the chemicals, but usually bees find harm through drinking contaminated pollen, nectar and water over time, according to PAN. Exposure to these pesticides can detrimental harm to bees over time, weakening their immune systems, shortening their adult life cycle and increasing their disorientation, and could be a cause for Colony Collapse Disorder. While the U.S. Environmental Protection Agency banned 12 types of neonicotinoids in May — from companies Syngenta, Valent and Bayer — there are still 47 more types on the market.
Can technology help with pesticides use?
There’s lots of startups looking into technology to change pesticides use and how we define them, especially in Europe, said Dr. Fiona Edwards Murphy, co-founder and CEO of ApisProtect. Her company, based in Ireland, utilizes machine learning to gather data about bee hive health. But Carly Stein, founder of Beekeeper’s Naturals, said that to completely rely on these new solutions for pesticides wouldn’t necessarily be the right solution. “To think there is going to be a pesticide outlet that’s not going to be damaging in some way, shape or form is just a little bit naive,” Stein says.
If anything, removing pesticides all together could mean growers would have to resort back to older methods of pest control that could potentially be more harmful to the bees, says Stein, who was listed on Forbes’ 2019 30 Under 30. Instead, there should be further research into how pesticides interact with other chemicals, and the subsequent effect on bees. Her company — whose mission is to reinvent the medicine cabinet with bee-based products —outsources its production to regions with no pesticides use like Canada, and conducts third-party pesticides testing on all its raw materials to produce its organic products.
How can urban beekeeping help?
But there are locations that are more sustainable for beekeeping, though, and they might not be where you predict. Timothy “Paule” Jackson’s nonprofit, Detroit Hives, builds urban bee farms in abandoned lots in Detroit, Michigan. By planting wildflowers, it provides bees a safe place to feed with little to no pesticides, Jackson said. “We have so many bees where wildflowers are sprouting, and we’re not spraying any chemicals on these wildflowers that they are actually boosting the native bee population,” Jackson says.
Stein mentioned that urban bees are often healthier than wild bees because of urban bee farms like Detroit Hives. While she loves meeting urban beekeepers, the issue is that there aren’t enough of them to sustain commercial production in the U.S., she says.
How can growers help beekeepers?
While there may be no immediate solution to pesticides, what’s needed is a stronger line of communication between beekeepers and growers, said Ellie Symes, CEO Of The Bee Corp and winner of the THRIVE Sustainability Award. She’s noted that her company has actually started working closer with growers, helping bridge the gap of education between the two groups of agricultural workers. It’s helpful for at least beekeepers to know what crops are being sprayed with pesticides and when, she says.
“We are starting to see the different players working together, the chemical companies getting involved and being interested and that’s what matters,” Symes says. “We’ll figure this issue out, but everyone’s gotta be involved.”
=Haley Kim; Forbes Staff
The Anatomy Of A Fake Cryptocurrency Trade: How Exchanges Create Phony Transactions
Take a close look at trading activity on BKEX—a cryptocurrency exchange founded in 2018 and registered in the British Virgin Islands—and you’ll see something odd. Compare its transactions side-by-side with those of Binance, one of the largest crypto exchanges in the world, and you’ll notice BKEX’s trading history is a replica, printing the same numbers delayed by a few seconds.
According to CoinMarketCap, BKEX has $1.1 billion in daily volume, making it the 20th-largest exchange on the planet. Yet it seems to be simply copying Binance’s trade history and passing it off as its own, in perhaps the laziest attempt in history to fool people into thinking it’s a lively place to trade digital assets.
A new report by Alameda Research, a 20-person crypto trading firm with offices in Hong Kong and Berkeley, California, reveals a clever set of tricks used by crypto exchanges to fabricate volume.
In the wake of other reports on phony trades, including one by digital asset manager Bitwise indicating that 95% of all transactions are bogus, Alameda felt it could create better research by leveraging its trading data and experience.
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The startup was cofounded in 2017 by Sam Bankman-Fried, 27, an MIT alum and former trader at high frequency trading outfit Jane Street. Gary Wang, 26, a fellow MIT grad and former Google software developer, is his cofounder. The firm has $100 million in assets, and over the past month it has traded $1 billion a day on average, making it one of the largest crypto trading firms in the world.
Exchanges make money by charging users to trade, and they have many reasons to artificially inflate volume. More activity means a higher rank on the still-popular website CoinMarketCap, which can attract new users.
Exchanges also charge fees to new cryptocurrency projects that want to get listed in their marketplace, and the perception of popularity helps them command higher rates. Since an exchange’s place of business is just a website or an app, and many located outside the U.S. are unregulated, it can publish any numbers it wants and call them trades.
Meanwhile, CoinMarketCap continues to insufficiently vet exchanges’ transaction volume, often taking companies at their word and publishing dubious numbers.
According to Alameda’s research, another method exchanges use to juice their statistics is sneaking in large, fake transactions amid a flurry of smaller ones. CoinEgg, a Hong Kong-registered exchange that trades $1.1 billion a day reported by CoinMarketCap, recently employed this tactic with litecoin (LTC) trades.
During a period when Alameda observed 15 different offers to buy and sell litecoin in a maximum quantity of 134 LTC, several trades printed as large as 2,000 LTC, as if a buyer appeared out of thin air.
Trading marketplaces typically publish their “order book,” showing a list of bid prices at which people are willing to buy an asset, plus a separate set of offer prices where people are willing to sell.
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For instance, Bill might be willing to buy bitcoin at $10,000, while Mary wants to sell at no less than $10,050. For a trade to happen, a new buyer must be willing to pay the $10,050 that Mary is offering, and the vast majority of trades that clear will align with orders that previously showed up in the order book, unless two users place offsetting orders at the same exact time.
Yet on some exchanges, trades get executed at prices and sizes that fall outside anything sitting on the order book. On Digifinex, a Singapore-based crypto trading venue, Alameda observed bids and asks for bitcoin between $8,296 and $8,298, but several trades printed at $8,290 and $8,293, prices lower than what anyone was willing to sell at.
On LAToken, a Moscow digital exchange, Alameda saw bids and offers with a maximum size of 1.6 bitcoin in the order book. Implausibly, several trades sailed through at sizes up to 20 bitcoin. LAToken founder Valentin Preobrazhenskiy says his platform only has a “tiny share” of 20-bitcoin orders and that exchanges use inflated volumes as a marketing tool.
“The situation would change when large exchange-ranking sites would add a section for trading volumes based on trades reported to regulators,” he says. On Singapore-based ABCC, the best bid and offers Alameda saw were for sizes less than one ether, yet several transactions materialized with sizes of up to 11 ether.
Among trading venues, there’s also the well-worn method of simply printing transactions that fall in the middle of the bid and ask prices, which Alameda’s research spotted in IDAX and Coineal. In total, Alameda’s report gives examples of fishy trading patterns on 60 different crypto exchanges. Aside from LAToken, none of the exchanges named above responded immediately to Forbes’ request for comment.
The methodology behind Alameda’s research was to test each exchange on six different criteria. First, they manually looked at an exchange’s order book and observed where trades printed. If more than 10% of transactions didn’t appear on the order book, it failed on this dimension. Another test involved observing the percent of an exchange’s trades that took place at the best available bids or offers.
A third criterion was to analyze how much Alameda itself traded on a given exchange, since the startup deals in “virtually every cryptocurrency,” considers its algorithms “exchange-agnostic” and estimates that it trades 5% of all global crypto volume.
“If we trade more than .5% of an exchange’s reported volume, we consider that exchange to pass according to this criterion,” the report reads. For more details on its methodology, see the full report.
Beyond exchanges’ bad behavior, the report has other provocative insights. It claims that crypto—including both “spot” trades of actual digital assets and derivatives, like bitcoin futures—trades $38 billion in real volume a day, and 87% of that happens on Asian exchanges, with just 9% happening on U.S. venues. The strict regulatory environment in the U.S. is likely a contributing factor in Asia’s dominance, Alameda says.
Compared with Bitwise, which released a follow-up fake volume reportin May 2019, Alameda thinks more crypto volume is real. For large exchanges like OKEx and Huobi, which were founded in China, Alameda estimates about 70% of their transactions are authentic.
Bitwise is much more skeptical, as is the Blockchain Transparency Institute, which has estimated that more than 60% of Huobi’s volume is fake and more than 90% of OKEx’s volume is fabricated.
A Huobi spokesperson says it doesn’t engage in wash trading, but that it has observed some market-makers doing so on its platform, and it takes steps to stamp them out.
An OKEx spokesperson says the company isn’t involved in and doesn’t tolerate wash trading, adding, “Recently we have joined the Data Accountability & Transparency Alliance (DATA) led by CoinMarketCap, as a commitment to reveal as much data as possible.”
-Jeff Kauflin; Forbes Staff
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