#E][o:80: more than just a trade war

I learned about an interesting option. If you call any emergency service, Samsung then turns off the blocking of all numbers for 2 hours. This is done so that you can definitely get through.

#E][o:80: more than just a trading war

About the doomed Netflix

We live in truly incredible times. At first, Tesla shares skyrocketed. And now Netflix has announced that for once it has made money. And not just earned, but the cash flow remained positive! That is, after the cost of producing content, Netflix has a whole billion and 60 million dollars left. And the company even said that it would not take on new debts for the time being, as it was quite coping with its own funds. For this historic event, it took nothing at all: to quarantine the whole world, forbidding people to go outside.

Netflix expects cash flow to be positive throughout the current year. However, it is too early to rejoice, and the company is still unprofitable. The current situation has developed due to the coronavirus, due to which the filming of new content has been frozen. Netflix itself admits this and at the call dedicated to the results of the quarter, hastened to reassure everyone, saying that next year it will rapidly start production and there will be losses again.

By the way, I wish Netflix would start filming again. It is already known that it is unlikely that the new season of The Witcher will be released on time, like a number of other promising series.

#E][o:80: more than just a trading war

This may be an unpopular thought, but unfortunately it's becoming clear that Netflix is ​​doomed. Netflix currently has 193 million subscribers worldwide. I guess it's not a mistake to say that all potential customers during the quarantine signed up for Netflix. And, apparently, if a person has not connected a subscription while sitting at home without getting out, then it is unlikely that he will ever pay for the product at all. That is, Netflix has reached a conditional maximum. Undoubtedly, the subscription base will continue to grow. But not as fast as before. Last quarter, Netflix signed 10 million people, in the 3rd quarter it expects to increase its subscription base by only 2.5 million. At the same time, as I wrote above, the company confidently states that next year due to content production will again be unprofitable. Simply put, Netflix has publicly admitted that its current business model is not working. And this despite the latest rise in subscription prices. Now we have to wait until investors admit it and the stock will go downhill.

Companies need to look for new ways to monetize. Give up principles by integrating advertising and product placement, otherwise you can stay without The Witcher.

#E][o:80: more than just a trading war

However, Henry Cavill (the performer of the role of the Witcher) was a little disappointing. Recently, on his Instagram, he posted a video of how he assembles a gaming computer. But any fool understands that the real Geralt of Rivia would have bought a PlayStation. Because it is at work that Geralt "bothers", and in moments of rest he is a hedonist. And what real hedonist will buy a gaming PC for himself, and even build it himself?!

About Apple and ARM

I noticed that I see quite a lot of criticism regarding Apple's decision to transfer computers to the ARM architecture. At the same time, they somehow do not pay attention to the fact that the transition to ARM is not a whim, but a vital condition.

The whole logic of Apple's existence fits into the slogan "Think Different" and detuning from competitors. This is manifested in any product and service of the company. Apple is constantly trying to move as far as possible from the crowd of competitors, thus showing that it is not with them. You can even take the ridiculous Apple TV service for now. With its launch, the company promised not serials, fun and “stickiness”, but some special stories from the best people. For example, last month the typical action movie Extraction with Chris Hemsworth was released on Netflix (I liked it and I recommend you watch it).Netflix reported that the film was seen by 99 million people and is one of the most successful films of the year. However, despite all the success, such a movie would never have been released on Apple TV. Because this is a stupid mediocre story that is not good for the mind or for the heart. Something like a film adaptation of Isaac Asimov may come out on Apple TV. Everything is there in that sense. Whether Apple will be able to make a box office release or not remains a mystery. But the essence of the idea and approach should be understood.

MacBook on ARM follows the same path. Apple is trying to make a computer that will be as different as possible from existing solutions on the market. The reason is very simple. You can put any price on a unique product, and they will buy it, because there are no analogues. And if Apple can deliver decent performance and comfort, then the upcoming ARM-based MacBook will be a unique hit thanks to its combination of size, weight, performance and battery life. And in the minds of people it will once again be postponed that there are laptops, but there is a MacBook.

#E][o:80: more than just a trading war

More than just a trade war

Two words about Huawei

In Echo #3, we discussed an interview with Satya Nadella, CEO of Microsoft, in which he suggested that “the conflict between the US and China showed that the era of globalization is over. The current confrontation is not something that will end in a month or two and everything will be the same as before. Each country begins to ask the question: “What is the plus for me if a certain company operates on my territory, which receives all the bonuses and almost does not bear any responsibility?”. According to Nadella, the world has entered the stage of economic nationalism.

Current events have shown that he is absolutely right. It all started with a confrontation with Huawei, but now we can say that the fighting is going on all fronts. By the way, speaking of Huawei, the war is far from over, but if at first the battle was on an equal footing, now the United States is clearly winning. Huawei has lost a fairly significant battle for 5G in the UK. We can say that politics has won over technology. From the end of this year, all new equipment from Huawei will be banned. Accordingly, operators will have to refuse to cooperate with Huawei in the deployment of 5G. So to speak, Britain is shooting itself in the foot. Analysts estimate that what is happening could delay the arrival of 5G in the country by 3 years. But the problem is much deeper, since the 2G, 3G and 4G equipment of the operators is also from Huawei. The law is merciful, and already installed equipment can not be changed, but it also needs to be serviced. But how to do this if nothing from Huawei can be imported? The Financial Times drew a traditional cartoon about this.

#E][o:80: more than just a trading war

The fact that what is happening was not planned is at least the fact that Vodafone (the third largest operator in the country) asked to postpone the auction on frequencies for 5G. Nick Jeffery, CEO of Vodafone UK, says the telecoms industry has one of the lowest ROIs in the world. And the company is experiencing certain difficulties, since it is necessary to replace Huawei equipment, while the latter is not eager to give money away. Here, of course, we do not know the terms of the contract. It is likely that Huawei, providing the lowest possible price, fixed something in the contract in its favor in exchange.

And, of course, not only telecom operators will suffer. For example, Internet providers also used Huawei equipment. However, they have 2 more years before a complete ban on cooperation with Huawei.

In response, China is considering the option of punishing Nokia and Ericsson as EU representatives in the Chinese market. Nokia's position in China is rather weak, but Ericsson will be deeply upset. The company closely cooperates with all leading operators in the country.

TikTok

But I brought up the topic of the trade war because of TikTok. This Chinese application I consider the most dangerous in the world. There's some exciting stuff going on there. Open it up and hop! - the video goes one by one, you scroll through automatically. It seems that he didn’t really look at anything, and the hour of time disappeared. The most unpleasant thing is that I directly feel how the brain really likes what is happening on the screen: fun, bright, provocatively, quickly, no need to strain. I may be exaggerating, but after TikTok it took me about half an hour to focus and thoughtfully read the analytical report with figures-graphs. Bypass the app.

In the United States, for several months now, they have understood the “danger” of TikTok. Although I believe that in the eyes of the US government, the danger of the application is not only in softening the brain of citizens. This is just not so bad. Rather, TikTok is a multifaceted threat.

Let's start with the fact that TiKTok is a direct threat to all social networks. In the United States, as of June 2020, TikTok has about 140 million users, that is, approximately 42% of the total population of the country.

#E][o:80: more than just a trading war

It should be understood that TikTok is not a social network in the typical sense. It steals traffic and ad money from Facebook, but it's not really a competitor.

Secondly, TikTok actively collects all the information it can. It's about geolocation, IP addresses, address books, access to the camera. On the one hand, smartphone operating systems allow you to limit the needs of applications, but how many people bother with this? And as a diligent Chinese company, the developer of the ByteDance application, in accordance with the law on national intelligence, sends everything to the right place at the first request.

Speaking of the data leak, of course, one cannot help but think of Amazon, which ordered that TikTok employees remove TikTok from phones that have access to work email on Amazon. According to The New York Times, Amazon employees were told to uninstall the app on the same day or their email access would be restricted.

However, Amazon was late, as the US Department of Defense issued a similar order back in December last year.

A third reason to fight TikTok is that the app can become a weapon of propaganda and disinformation. It sounds like paranoia, but when 42% (and the figure is growing) of countries are watching videos that some Chinese algorithm offers them, there is a high probability that someday they will try to put some idea into them.

Is the US correct in its claims? Absolutely. Is China right that in response to the ban of its companies it will inflict a symmetrical response (although China has been blocking all Western social networks for so long)? Undoubtedly. This means only one thing - that the escalation of the conflict will continue. Moreover, the further, the more third-party countries will be aware of what is happening and will try to protect their information sovereignty on all fronts.

The requirements of the Russian authorities on the transfer of servers and the pre-installation of domestic applications fit perfectly into the general outline. For me, the most striking example of a new wave of protectionism is France, which in mid-January began finalizing a bill requiring Netflix, Disney, Amazon, Apple, which are engaged in video streaming, to invest at least 25% of the revenue received in the country into the development of local film production. However, France's actions fit into the pan-European legislative system, which requires that the catalog of streaming platforms for 30% consists of European content. Only recently I was surprised by the abundance of series produced in Poland in the Netflix catalog. Apparently, it is cheaper to produce TV shows in Poland than in France.

France justifies its claim with the goal of "preserving cultural sovereignty in the digital age". And Netflix went forward without waiting for the bill to pass. The company has opened a nice new office in Paris and also said it will make 20 local series in 2020. At the same time, Netflix CEO Reed Hastings said: “It is a great honor to work in France with its rich culture and history of storytelling (history of storytelling). This office is a sign of our long-term commitment to the country. It will allow us to work even more closely with the French creative community to create great shows and films that will be filmed in France and seen around the world.”

Conclusion

I never tire of admiring what a wonderful time we live in. Suddenly I had to break into St. Petersburg. Thanks to carsharing and Sapsan, 5 hours (!) After the call, I am already at the right place. And all this with maximum comfort. The air conditioner was already working in the carsharing cars and exactly the music that I was listening to was playing, the Sapsan had excellent mobile communications and the Internet, thanks to which I was able to work fully, and the noise canceling headphones turned off all distracting noises for once. I understand it sounds trite. But I can't help but be excited. All smiles and good mood!

#E][o:80: more than just a trade war

I learned about an interesting option. If you call any emergency service, Samsung then turns off the blocking of all numbers for 2 hours. This is done so that you can definitely get through.

#E][o:80: more than just a trading war

About the doomed Netflix

We live in truly incredible times. At first, Tesla shares skyrocketed. And now Netflix has announced that for once it has made money. And not just earned, but the cash flow remained positive! That is, after the cost of producing content, Netflix has a whole billion and 60 million dollars left. And the company even said that it would not take on new debts for the time being, as it was quite coping with its own funds. For this historic event, it took nothing at all: to quarantine the whole world, forbidding people to go outside.

Netflix expects cash flow to be positive throughout the current year. However, it is too early to rejoice, and the company is still unprofitable. The current situation has developed due to the coronavirus, due to which the filming of new content has been frozen. Netflix itself admits this and at the call dedicated to the results of the quarter, hastened to reassure everyone, saying that next year it will rapidly start production and there will be losses again.

By the way, I wish Netflix would start filming again. It is already known that it is unlikely that the new season of The Witcher will be released on time, like a number of other promising series.

#E][o:80: more than just a trading war

This may be an unpopular thought, but unfortunately it's becoming clear that Netflix is ​​doomed. Netflix currently has 193 million subscribers worldwide. I guess it's not a mistake to say that all potential customers during the quarantine signed up for Netflix. And, apparently, if a person has not connected a subscription while sitting at home without getting out, then it is unlikely that he will ever pay for the product at all. That is, Netflix has reached a conditional maximum. Undoubtedly, the subscription base will continue to grow. But not as fast as before. Last quarter, Netflix signed 10 million people, in Q3 it expects to increase its subscription base by only 2.5 million. At the same time, as I wrote above, the company confidently states that next year due to content production will again be unprofitable. Simply put, Netflix has publicly admitted that its current business model is not working. And this despite the latest rise in subscription prices. Now we have to wait until investors admit it and the stock will go downhill.

Companies need to look for new ways to monetize. Give up principles by integrating advertising and product placement, otherwise you can stay without The Witcher.

#E][o:80: more than just a trading war

However, Henry Cavill (the performer of the role of the Witcher) was a little disappointing. Recently, on his Instagram, he posted a video of how he assembles a gaming computer. But any fool understands that the real Geralt of Rivia would have bought a PlayStation. Because it is at work that Geralt "bothers", and in moments of rest he is a hedonist. And what real hedonist will buy a gaming PC for himself, and even build it himself?!

About Apple and ARM

I noticed that I see quite a lot of criticism regarding Apple's decision to transfer computers to the ARM architecture. At the same time, they somehow do not pay attention to the fact that the transition to ARM is not a whim, but a vital condition.

The whole logic of Apple's existence fits into the slogan "Think Different" and detuning from competitors. This is manifested in any product and service of the company. Apple is constantly trying to move as far as possible from the crowd of competitors, thus showing that it is not with them. You can even take the ridiculous Apple TV service for now. With its launch, the company promised not serials, fun and “stickiness”, but some special stories from the best people. For example, last month the typical action movie Extraction with Chris Hemsworth was released on Netflix (I liked it and I recommend you watch it).Netflix reported that the film was seen by 99 million people and is one of the most successful films of the year. However, despite all the success, such a movie would never have been released on Apple TV. Because this is a stupid mediocre story that is not good for the mind or for the heart. Something like a film adaptation of Isaac Asimov may come out on Apple TV. Everything is there in that sense. Whether Apple will be able to make a box office release or not remains a mystery. But the essence of the idea and approach should be understood.

MacBook on ARM follows the same path. Apple is trying to make a computer that will be as different as possible from existing solutions on the market. The reason is very simple. You can put any price on a unique product, and they will buy it, because there are no analogues. And if Apple can deliver decent performance and comfort, then the upcoming ARM-based MacBook will be a unique hit thanks to its combination of size, weight, performance and battery life. And in the minds of people once again it will be postponed that there are laptops, but there is a MacBook.

#E][o:80: more than just a trading war

More than just a trade war

Two words about Huawei

In Echo #3, we discussed an interview with Satya Nadella, CEO of Microsoft, in which he suggested that “the conflict between the US and China showed that the era of globalization is over. The current confrontation is not something that will end in a month or two and everything will be the same as before. Each country begins to ask the question: “What is the plus for me if a certain company operates on my territory, which receives all the bonuses and almost does not bear any responsibility?”. According to Nadella, the world has entered the stage of economic nationalism.

Current events have shown that he is absolutely right. It all started with a confrontation with Huawei, but now we can say that the fighting is going on all fronts. By the way, speaking of Huawei, the war is far from over, but if at first the battle was on an equal footing, now the United States is clearly winning. Huawei has lost a fairly significant battle for 5G in the UK. We can say that politics has won over technology. From the end of this year, all new equipment from Huawei will be banned. Accordingly, operators will have to refuse to cooperate with Huawei in the deployment of 5G. So to speak, Britain is shooting itself in the foot. Analysts estimate that what is happening could delay the arrival of 5G in the country by 3 years. But the problem is much deeper, since the 2G, 3G and 4G equipment of the operators is also from Huawei. The law is merciful, and already installed equipment can not be changed, but it also needs to be serviced. But how to do this if nothing from Huawei can be imported? The Financial Times drew a traditional cartoon about this.

#E][o:80: more than just a trading war

The fact that what is happening was not planned is at least the fact that Vodafone (the third largest operator in the country) asked to postpone the auction on frequencies for 5G. Nick Jeffery, CEO of Vodafone UK, says the telecoms industry has one of the lowest ROIs in the world. And the company is experiencing certain difficulties, since it is necessary to replace Huawei equipment, while the latter is not eager to give money away. Here, of course, we do not know the terms of the contract. It is likely that Huawei, providing the lowest possible price, fixed something in the contract in its favor in exchange.

And, of course, not only telecom operators will suffer. For example, Internet providers also used Huawei equipment. However, they have 2 more years before a complete ban on cooperation with Huawei.

In response, China is considering the option of punishing Nokia and Ericsson as EU representatives in the Chinese market. Nokia's position in China is rather weak, but Ericsson will be deeply upset. The company closely cooperates with all leading operators in the country.

TikTok

But I brought up the topic of the trade war because of TikTok. This Chinese application I consider the most dangerous in the world. There's some exciting stuff going on there. Open it up and hop! - the video goes one by one, you scroll through automatically. It seems that he didn’t really look at anything, and the hour of time disappeared. The most unpleasant thing is that I directly feel how the brain really likes what is happening on the screen: fun, bright, provocatively, quickly, no need to strain. I may be exaggerating, but after TikTok it took me about half an hour to focus and thoughtfully read the analytical report with graph numbers. Bypass the app.

In the United States, for several months now, they have understood the “danger” of TikTok. Although I believe that in the eyes of the US government, the danger of the application is not only in softening the brain of citizens. This is just not so bad. Rather, TikTok is a multifaceted threat.

Let's start with the fact that TiKTok is a direct threat to all social networks. In the United States, as of June 2020, TikTok has about 140 million users, that is, approximately 42% of the total population of the country.

#E][o:80: more than just a trading war

It should be understood that TikTok is not a social network in the typical sense. It steals traffic and ad money from Facebook, but it's not really a competitor.

Secondly, TikTok actively collects all the information it can. It's about geolocation, IP addresses, address books, access to the camera. On the one hand, smartphone operating systems allow you to limit the needs of applications, but how many people bother with this? And as a diligent Chinese company, the developer of the ByteDance application, in accordance with the law on national intelligence, sends everything to the right place at the first request.

Speaking of the data leak, of course, one cannot help but think of Amazon, which ordered that TikTok employees remove TikTok from phones that have access to work email on Amazon. According to The New York Times, Amazon employees were told to uninstall the app on the same day or their email access would be restricted.

However, Amazon was late, as the US Department of Defense issued a similar order back in December last year.

A third reason to fight TikTok is that the app can become a weapon of propaganda and disinformation. It sounds like paranoia, but when 42% (and the figure is growing) of countries are watching videos that some Chinese algorithm offers them, there is a high probability that someday they will try to put some idea into them.

Is the US correct in its claims? Absolutely. Is China right that in response to the ban of its companies it will inflict a symmetrical response (although China has been blocking all Western social networks for so long)? Undoubtedly. This means only one thing - that the escalation of the conflict will continue. Moreover, the further, the more third-party countries will be aware of what is happening and will try to protect their information sovereignty on all fronts.

The requirements of the Russian authorities on the transfer of servers and the pre-installation of domestic applications fit perfectly into the general outline. For me, the most striking example of a new wave of protectionism is France, which in mid-January began finalizing a bill requiring Netflix, Disney, Amazon, Apple, which are engaged in video streaming, to invest at least 25% of the revenue received in the country into the development of local film production. However, France's actions fit into the pan-European legislative system, which requires that the catalog of streaming platforms for 30% consists of European content. Only recently I was surprised by the abundance of series produced in Poland in the Netflix catalog. Apparently, it is cheaper to produce TV shows in Poland than in France.

France justifies its claim with the goal of "preserving cultural sovereignty in the digital age". And Netflix went forward without waiting for the bill to pass. The company has opened a nice new office in Paris and also said it will make 20 local series in 2020. At the same time, Netflix CEO Reed Hastings said: “It is a great honor to work in France with its rich culture and history of storytelling (history of storytelling). This office is a sign of our long-term commitment to the country. It will allow us to work even more closely with the French creative community to create great shows and films that will be filmed in France and seen around the world.”

Conclusion

I never tire of admiring what a wonderful time we live in. Suddenly I had to break into St. Petersburg. Thanks to carsharing and Sapsan, 5 hours (!) After the call, I am already at the right place. And all this with maximum comfort. The air conditioner was already working in the carsharing cars and exactly the music that I was listening to was playing, the Sapsan had excellent mobile communications and the Internet, thanks to which I was able to work fully, and the noise canceling headphones turned off all distracting noises for once. I understand it sounds trite. But I can't help but be excited. All smiles and good mood!

#E][o:80: more than just a trade war

I learned about an interesting option. If you call any emergency service, Samsung then turns off the blocking of all numbers for 2 hours. This is done so that you can definitely get through.

#E][o:80: more than just a trading war

About the doomed Netflix

We live in truly incredible times. At first, Tesla shares skyrocketed. And now Netflix has announced that for once it has made money. And not just earned, but the cash flow remained positive! That is, after the cost of producing content, Netflix has a whole billion and 60 million dollars left. And the company even said that it would not take on new debts for the time being, as it was quite coping with its own funds. For this historic event, it took nothing at all: to quarantine the whole world, forbidding people to go outside.

Netflix expects cash flow to be positive throughout the current year. However, it is too early to rejoice, and the company is still unprofitable. The current situation has developed due to the coronavirus, due to which the filming of new content has been frozen. Netflix itself admits this and at the call dedicated to the results of the quarter, hastened to reassure everyone, saying that next year it will rapidly start production and there will be losses again.

By the way, I wish Netflix would start filming again. It is already known that it is unlikely that the new season of The Witcher will be released on time, like a number of other promising series.

#E][o:80: more than just a trading war

This may be an unpopular thought, but unfortunately it's becoming clear that Netflix is ​​doomed. Netflix currently has 193 million subscribers worldwide. I guess it's not a mistake to say that all potential customers during the quarantine signed up for Netflix. And, apparently, if a person has not connected a subscription while sitting at home without getting out, then it is unlikely that he will ever pay for the product at all. That is, Netflix has reached a conditional maximum. Undoubtedly, the subscription base will continue to grow. But not as fast as before. Last quarter, Netflix signed 10 million people, in Q3 it expects to increase its subscription base by only 2.5 million. At the same time, as I wrote above, the company confidently states that next year due to content production will again be unprofitable. Simply put, Netflix has publicly admitted that its current business model is not working. And this despite the latest rise in subscription prices. Now we have to wait until investors admit it and the stock will go downhill.

Companies need to look for new ways to monetize. Give up principles by integrating advertising and product placement, otherwise you can stay without The Witcher.

#E][o:80: more than just a trading war

However, Henry Cavill (who played the role of the Witcher) was a little disappointing. Recently, on his Instagram, he posted a video of how he assembles a gaming computer. But any fool understands that the real Geralt of Rivia would buy a PlayStation. Because it is at work that Geralt "bothers", and in moments of rest he is a hedonist. And what real hedonist will buy a gaming PC for himself, and even build it himself?!

About Apple and ARM

I noticed that I see quite a lot of criticism regarding Apple's decision to transfer computers to the ARM architecture. At the same time, they somehow do not pay attention to the fact that the transition to ARM is not a whim, but a vital condition.

The whole logic of Apple's existence fits into the slogan "Think Different" and detuning from competitors. This is manifested in any product and service of the company. Apple is constantly trying to move as far as possible from the crowd of competitors, thus showing that it is not with them. You can even take the so far ridiculous Apple TV service. With its launch, the company promised not serials, fun and “stickiness”, but some special stories from the best people. For example, last month the typical action movie Extraction with Chris Hemsworth was released on Netflix (I liked it and I recommend you watch it).Netflix reported that the film was seen by 99 million people and is one of the most successful films of the year. However, despite all the success, such a movie would never have been released on Apple TV. Because this is a stupid mediocre story that is not good for the mind or for the heart. Something like a film adaptation of Isaac Asimov may come out on Apple TV. Everything is there in that sense. Whether Apple will succeed in making a box office release or not remains a mystery. But the essence of the idea and approach should be understood.

MacBook on ARM follows the same path. Apple is trying to make a computer that will be as different as possible from existing solutions on the market. The reason is very simple. You can put any price on a unique product, and they will buy it, because there are no analogues. And if Apple can deliver decent performance and comfort, then the upcoming ARM-based MacBook will be a unique hit thanks to its combination of size, weight, performance and battery life. And in the minds of people it will once again be postponed that there are laptops, but there is a MacBook.

#E][o:80: more than just a trading war

More than just a trade war

Two words about Huawei

In Echo #3, we discussed an interview with Satya Nadella, CEO of Microsoft, in which he suggested that “the conflict between the US and China showed that the era of globalization is over. The current confrontation is not something that will end in a month or two and everything will be the same as before. Each country begins to ask the question: “What is the plus for me if a certain company operates on my territory, which receives all the bonuses and almost does not bear any responsibility?”. According to Nadella, the world has entered the stage of economic nationalism.

Current events have shown that he is absolutely right. It all started with a confrontation with Huawei, but now we can say that the fighting is going on all fronts. By the way, speaking of Huawei, the war is far from over, but if at first the battle was on an equal footing, now the United States is clearly winning. Huawei has lost a fairly significant battle for 5G in the UK. We can say that politics has won over technology. From the end of this year, all new equipment from Huawei will be banned. Accordingly, operators will have to refuse to cooperate with Huawei in the deployment of 5G. So to speak, Britain is shooting itself in the foot. Analysts estimate that what is happening could delay the arrival of 5G in the country by 3 years. But the problem is much deeper, since the 2G, 3G and 4G equipment of the operators is also from Huawei. The law is merciful, and already installed equipment can not be changed, but it also needs to be serviced. But how to do this if nothing from Huawei can be imported? The Financial Times drew a traditional cartoon about this.

#E][o:80: more than just a trading war

The fact that what is happening was not planned is at least the fact that Vodafone (the third largest operator in the country) asked to postpone the auction on frequencies for 5G. Nick Jeffery, CEO of Vodafone UK, says the telecoms industry has one of the lowest ROIs in the world. And the company is experiencing certain difficulties, since it is necessary to replace Huawei equipment, while the latter is not eager to give money away. Here, of course, we do not know the terms of the contract. It is likely that Huawei, providing the lowest possible price, fixed something in the contract in its favor in exchange.

And, of course, not only telecom operators will suffer. For example, Internet providers also used Huawei equipment. However, they have 2 more years before a complete ban on cooperation with Huawei.

In response, China is considering the option of punishing Nokia and Ericsson as EU representatives in the Chinese market. Nokia's position in China is rather weak, but Ericsson will be deeply upset. The company closely cooperates with all leading operators in the country.

TikTok

But I brought up the topic of the trade war because of TikTok. This Chinese application I consider the most dangerous in the world. There's some exciting stuff going on there. Open it up and hop! - the video goes one by one, you scroll through automatically. It seems that he didn’t really look at anything, and the hour of time disappeared. The most unpleasant thing is that I directly feel how the brain really likes what is happening on the screen: fun, bright, provocatively, quickly, no need to strain. I may be exaggerating, but after TikTok it took me about half an hour to focus and thoughtfully read the analytical report with graph numbers. Bypass the app.

In the United States, for several months now, they have understood the “danger” of TikTok. Although I believe that in the eyes of the US government, the danger of the application is not only in softening the brain of citizens. This is just not so bad. Rather, TikTok is a multifaceted threat.

Let's start with the fact that TiKTok is a direct threat to all social networks. In the United States, as of June 2020, TikTok has about 140 million users, that is, approximately 42% of the total population of the country.

#E][o:80: more than just a trading war

It should be understood that TikTok is not a social network in the typical sense. It steals traffic and ad money from Facebook, but it's not really a competitor.

Secondly, TikTok actively collects all the information it can. It's about geolocation, IP addresses, address books, access to the camera. On the one hand, smartphone operating systems allow you to limit the needs of applications, but how many people bother with this? And as a diligent Chinese company, the developer of the ByteDance application, in accordance with the law on national intelligence, sends everything to the right place at the first request.

Speaking of the data leak, of course, one cannot help but think of Amazon, which ordered that TikTok employees remove TikTok from phones that have access to work email on Amazon. According to The New York Times, Amazon employees were told to uninstall the app on the same day or their email access would be restricted.

However, Amazon was late, as the US Department of Defense issued a similar order back in December last year.

A third reason to fight TikTok is that the app can become a weapon of propaganda and disinformation. It sounds like paranoia, but when 42% (and the figure is growing) of countries are watching videos that some Chinese algorithm offers them, there is a high probability that someday they will try to put some idea into them.

Is the US correct in its claims? Absolutely. Is China right that in response to the ban of its companies it will inflict a symmetrical response (although China has been blocking all Western social networks for so long)? Undoubtedly. This means only one thing - that the escalation of the conflict will continue. Moreover, the further, the more third-party countries will be aware of what is happening and will try to protect their information sovereignty on all fronts.

The requirements of the Russian authorities on the transfer of servers and the pre-installation of domestic applications fit perfectly into the general outline. For me, the most striking example of a new wave of protectionism is France, which in mid-January began finalizing a bill requiring Netflix, Disney, Amazon, Apple, which are engaged in video streaming, to invest at least 25% of the revenue received in the country into the development of local film production. However, France's actions fit into the pan-European legislative system, which requires that the catalog of streaming platforms for 30% consists of European content. Only recently I was surprised by the abundance of series produced in Poland in the Netflix catalog. Apparently, it is cheaper to produce TV shows in Poland than in France.

France justifies its claim with the goal of "preserving cultural sovereignty in the digital age". And Netflix went forward without waiting for the bill to pass. The company has opened a nice new office in Paris and also said it will make 20 local series in 2020. At the same time, Netflix CEO Reed Hastings said: “It is a great honor to work in France with its rich culture and history of storytelling (history of storytelling). This office is a sign of our long-term commitment to the country. It will allow us to work even more closely with the French creative community to create great shows and films that will be filmed in France and seen around the world.”

Conclusion

I never tire of admiring what a wonderful time we live in. Suddenly I had to break into St. Petersburg. Thanks to carsharing and Sapsan, 5 hours (!) After the call, I am already at the right place. And all this with maximum comfort. The air conditioner was already working in the carsharing cars and exactly the music that I was listening to was playing, the Sapsan had excellent mobile communications and the Internet, thanks to which I was able to work fully, and the noise canceling headphones turned off all distracting noises for once. I understand it sounds trite. But I can't help but be excited. All smiles and good mood!

#E][o:80: more than just a trade war

I learned about an interesting option. If you call any emergency service, Samsung then turns off the blocking of all numbers for 2 hours. This is done so that you can definitely get through.

About the doomed Netflix

We live in truly incredible times. At first, Tesla shares skyrocketed. And now Netflix has announced that for once it has made money. And not just earned, but the cash flow remained positive! That is, after the cost of producing content, Netflix has a whole billion and 60 million dollars left. And the company even said that it would not take on new debts for the time being, as it was quite coping with its own funds. For this historic event, it took nothing at all: to quarantine the whole world, forbidding people to go outside.

Netflix expects cash flow to be positive throughout the current year. However, it is too early to rejoice, and the company is still unprofitable. The current situation has developed due to the coronavirus, due to which the filming of new content has been frozen. Netflix itself admits this and at the call dedicated to the results of the quarter, hastened to reassure everyone, saying that next year it will rapidly start production and there will be losses again.

By the way, I wish Netflix would start filming again. It is already known that it is unlikely that the new season of The Witcher will be released on time, like a number of other promising series.

This may be an unpopular thought, but unfortunately it's becoming clear that Netflix is ​​doomed. Netflix currently has 193 million subscribers worldwide. I guess it's not a mistake to say that all potential customers during the quarantine signed up for Netflix. And, apparently, if a person has not connected a subscription while sitting at home without getting out, then it is unlikely that he will ever pay for the product at all. That is, Netflix has reached a conditional maximum. Undoubtedly, the subscription base will continue to grow. But not as fast as before. In the last quarter, Netflix signed 10 million people, in the 3rd quarter it expects to increase the subscription base by only 2.5 million. At the same time, as I wrote above, the company confidently states that next year due to content production it will again be unprofitable. Simply put, Netflix has publicly admitted that its current business model is not working. And this despite the latest rise in subscription prices. Now we have to wait until investors admit it and the stock will go downhill.

I may sound unpopular thought, but, unfortunately, it becomes obvious that Netflix is ​​doomed. Netflix currently has 193 million subscribers worldwide. I guess it's not a mistake to say that all potential customers during the quarantine signed up for Netflix. And, apparently, if a person has not connected a subscription while sitting at home without getting out, then it is unlikely that he will ever pay for the product at all. That is, Netflix has reached a conditional maximum. Undoubtedly, the subscription base will continue to grow. But not as fast as before. In the last quarter, Netflix signed 10 million people, in the 3rd quarter it expects to increase the subscription base by only 2.5 million. At the same time, as I wrote above, the company confidently declares that next year, due to the production of content, it will again be unprofitable. Simply put, Netflix has publicly admitted that its current business model is not working. And this despite the latest rise in subscription prices. Now we have to wait until investors recognize this and the stock will go downhill.

Companies need to look for new ways to monetize. Give up principles by integrating advertising and product placement, otherwise you can stay without The Witcher.

However, Henry Cavill (the performer of the role of the Witcher) was a little disappointing. Recently, on his Instagram, he posted a video of how he assembles a gaming computer. But any fool understands that the real Geralt of Rivia would have bought a PlayStation. Because it is at work that Geralt "bothers", and in moments of rest he is a hedonist. And what real hedonist will buy a gaming PC for himself, and even build it himself?!

About Apple and ARM

I noticed that I see quite a lot of criticism regarding Apple's decision to transfer computers to the ARM architecture. At the same time, they somehow do not pay attention to the fact that the transition to ARM is not a whim, but a vital condition.

The whole logic of Apple's existence fits into the slogan "Think Different" and detuning from competitors. This is manifested in any product and service of the company. Apple is constantly trying to move as far as possible from the crowd of competitors, thus showing that it is not with them. You can even take the ridiculous Apple TV service for now. With its launch, the company promised not serials, fun and “stickiness”, but some special stories from the best people. For example, last month the typical action movie Extraction with Chris Hemsworth was released on Netflix (I liked it and I recommend you watch it). Netflix reported that the film was seen by 99 million people and is one of the most successful films of the year. However, despite all the success, such a movie would never have been released on Apple TV. Because this is a stupid mediocre story that is not good for the mind or for the heart. Something like a film adaptation of Isaac Asimov may come out on Apple TV. Everything is there in that sense. Whether Apple will be able to make a box office release or not remains a mystery. But the essence of the idea and approach should be understood.

MacBook on ARM follows the same path. Apple is trying to make a computer that will be as different as possible from existing solutions on the market. The reason is very simple. You can put any price on a unique product, and they will buy it, because there are no analogues. And if Apple can deliver decent performance and comfort, then the upcoming ARM-based MacBook will be a unique hit thanks to its combination of size, weight, performance and battery life. And in the minds of people it will once again be postponed that there are laptops, but there is a MacBook.

More than just a trade war

Two words about Huawei

In Echo #3, we discussed an interview with Satya Nadella, CEO of Microsoft, in which he suggested that “the conflict between the US and China showed that the era of globalization is over. The current confrontation is not something that will end in a month or two and everything will be the same as before. Each country begins to ask the question: “What is the plus for me if a certain company operates on my territory, which receives all the bonuses and almost does not bear any responsibility?”. According to Nadella, the world has entered the stage of economic nationalism.

Current events have shown that he is absolutely right. It all started with a confrontation with Huawei, but now we can say that the fighting is going on all fronts. By the way, speaking of Huawei, the war is far from over, but if at first the battle was on an equal footing, now the United States is clearly winning. Huawei has lost a fairly significant battle for 5G in the UK. We can say that politics has won over technology. From the end of this year, all new equipment from Huawei will be banned. Accordingly, operators will have to refuse to cooperate with Huawei in the deployment of 5G. So to speak, Britain is shooting itself in the foot. Analysts estimate that what is happening could delay the arrival of 5G in the country by 3 years. But the problem is much deeper, since the 2G, 3G and 4G equipment of the operators is also from Huawei. The law is merciful, and already installed equipment can not be changed, but it also needs to be serviced. But how to do this if nothing from Huawei can be imported? The Financial Times drew a traditional cartoon about this.

The fact that what is happening was not planned is at least the fact that Vodafone (the third largest operator in the country) asked to postpone the auction on frequencies for 5G. Nick Jeffery, CEO of Vodafone UK, says the telecoms industry has one of the lowest ROIs in the world. And the company is experiencing certain difficulties, since it is necessary to replace Huawei equipment, while the latter is not eager to give money away. Here, of course, we do not know the terms of the contract. It is likely that Huawei, providing the lowest possible price, fixed something in the contract in its favor in exchange.

And, of course, not only telecom operators will suffer. For example, Internet providers also used Huawei equipment. However, they have 2 more years before a complete ban on cooperation with Huawei.

In response, China is considering the option of punishing Nokia and Ericsson as EU representatives in the Chinese market. Nokia's position in China is rather weak, but Ericsson will be deeply upset. The company closely cooperates with all leading operators in the country.

TikTok

But I brought up the topic of the trade war because of TikTok. This Chinese application I consider the most dangerous in the world. There's some exciting stuff going on there. Open it up and hop! - the video goes one by one, you scroll through automatically. It seems that he didn’t really look at anything, and the hour of time disappeared. The most unpleasant thing is that I directly feel how the brain really likes what is happening on the screen: fun, bright, provocatively, quickly, no need to strain. I may be exaggerating, but after TikTok it took me about half an hour to focus and thoughtfully read the analytical report with figures-graphs. Bypass the app.

In the United States, for several months now, they have understood the “danger” of TikTok. Although I believe that in the eyes of the US government, the danger of the application is not only in softening the brain of citizens. This is just not so bad. Rather, TikTok is a multifaceted threat.

Let's start with the fact that TiKTok is a direct threat to all social networks. In the United States, as of June 2020, TikTok has about 140 million users, that is, approximately 42% of the total population of the country.

It should be understood that TikTok is not a social network in the typical sense. It steals traffic and ad money from Facebook, but it's not really a competitor.

Secondly, TikTok actively collects all the information it can. It's about geolocation, IP addresses, address books, access to the camera. On the one hand, smartphone operating systems allow you to limit the needs of applications, but how many people bother with this? And as a diligent Chinese company, the developer of the ByteDance application, in accordance with the law on national intelligence, sends everything to the right place at the first request.

Speaking of the data leak, of course, one cannot help but think of Amazon, which ordered that TikTok employees remove TikTok from phones that have access to work email on Amazon. According to The New York Times, Amazon employees were told to uninstall the app on the same day or their email access would be restricted.

However, Amazon was late, as the US Department of Defense issued a similar order back in December last year.

A third reason to fight TikTok is that the app can become a weapon of propaganda and disinformation. It sounds like paranoia, but when 42% (and the figure is growing) of countries are watching videos that some Chinese algorithm offers them, there is a high probability that someday they will try to put some idea into them.

Is the US correct in its claims? Absolutely. Is China right that in response to the ban of its companies it will inflict a symmetrical response (although China has been blocking all Western social networks for so long)? Undoubtedly. This means only one thing - that the escalation of the conflict will continue. Moreover, the further, the more third-party countries will be aware of what is happening and will try to protect their information sovereignty on all fronts.

The requirements of the Russian authorities on the transfer of servers and the pre-installation of domestic applications fit perfectly into the general outline. For me, the most striking example of a new wave of protectionism is France, which in mid-January began finalizing a bill requiring Netflix, Disney, Amazon, Apple, which are engaged in video streaming, to invest at least 25% of the revenue received in the country into the development of local film production. However, France's actions fit into the pan-European legislative system, which requires that the catalog of streaming platforms for 30% consists of European content. Only recently I was surprised by the abundance of series produced in Poland in the Netflix catalog. Apparently, it is cheaper to produce TV shows in Poland than in France.

France justifies its claim with the goal of "preserving cultural sovereignty in the digital age". And Netflix went forward without waiting for the bill to pass. The company has opened a nice new office in Paris and also said it will make 20 local series in 2020. At the same time, Netflix CEO Reed Hastings said: “It is a great honor to work in France with its rich culture and history of storytelling (history of storytelling). This office is a sign of our long-term commitment to the country. It will allow us to work even more closely with the French creative community to create great shows and films that will be filmed in France and seen around the world.”

Conclusion

I never tire of admiring what a wonderful time we live in. Suddenly I had to break into St. Petersburg. Thanks to carsharing and Sapsan, 5 hours (!) After the call, I am already at the right place. And all this with maximum comfort. The air conditioner was already working in the carsharing cars and exactly the music that I was listening to was playing, the Sapsan had excellent mobile communications and the Internet, thanks to which I was able to work fully, and the noise canceling headphones turned off all distracting noises for once. I understand it sounds trite. But I can't help but be excited. All smiles and good mood!