Biometric authentication gathers momentum in the UK

The introduction of biometric authentication might have been met with some scepticism, and the technology still has its critics, but it does seem to be gaining traction in the UK.

According to credit reporting agency Equifax, not only are more Brits using the technology, but they are open to adopting such authentication and identification techniques in a wider range of scenarios. Opening a smartphone might be the most widely-adopted use of the technology, but how about age authentication in the pub?

71% of respondents for the survey are happy with finger-print or facial recognition to complete replace traditional PIN verification for accessing smartphones, while another 64% would be happy to see the technologies replace passwords for laptops. 60% of respondents are happy for biometric authentication for age verification and 58% would even be open to see voting ballots given the same upgrade.

Interestingly enough, the challenge which the industry will face is most likely to be around privacy and data protection concerns. With data breaches and leaks being reported in the press with continued regularity, consumer confidence will certainly be impacted. And the irony this survey has been sponsored by Equifax, the source of one of the biggest data breaches to date, has not been lost on us.

That said, while there are still data protection and privacy concerns to be ironed-out, new technologies will be needed to address the dangers and risks of the digital economy.

“As the rise in financial fraud continues, particularly when it comes to identity theft, it’s essential we develop and embrace new and innovative means to protect consumers,” said Keith McGill, Head of ID & Fraud at Equifax.

“The techniques being used to scam Brits are increasingly sophisticated and breaking into the old world of signatures and pin codes is bread and butter for today’s fraudsters.

“Further implementation of biometric options within the financial services sector will go a long way to tackle this. Tapping into our unique biological passcodes can help businesses and consumers stay ahead of the curve, and as the technology develops, it will become even more widespread, trusted and popular in the years to come.”

One telco which is trialling a similar proposition is Telia. Teaming up with Finnish bank OP, the duo is testing facial recognition payment solutions for an ice-cream truck. Using the biometric template uploaded through a camera prior to the purchase with the customers bank, a connected device is used by the merchant to authenticate the individual. The customer then authorises the purchase with a simple click once their face has been recognised.

This is of course a very rudimentary application of the technology, but with the introduction of 5G, edge-computing gathering pace and greater adoption of blockchain technology, biometric authentication could be a very reliable, efficient and secure means of managing identification and transactions in the digital economy.

The next big challenge will be the public perception of not only the technology, but a company’s ability to safely collect, store and manage data. The frequency of data breaches and leaks could undermine progress here, though a more responsible attitude towards security does seem to be emerging. Security does seem to be more than a pitch for PR points today, a welcome trend if the digital economy is to be an enabler not a risk to society and the economy.

Facebook revenues surge as EU antitrust team revs its engine

Facebook has been on somewhat of a rollercoaster ride over the last 24 hours, revealing another quarter of impressive year-on-year growth, while rumours circulate it could be facing a competition probe.

In Menlo Park, California, CEO Mark Zuckerberg and CFO David Wehner boasted of another quarter which demonstrated the Facebook advertising machine is not slowing down, while on the other side of the Atlantic, Reuters has suggested the European Commission has taken the first steps in an antitrust investigation concerning the Marketplace feature.

What is worth noting is these are only the preliminary steps, and it will be some time before the European Commission decides whether to formally launch a full-investigation. After complaints alleged Facebook was using its market power to create an unfair competitive advantage, the European Commission has sent surveys to various players in the industry to better understand how the competitive landscape has developed.

For Facebook, this should be seen as a worrying sign. Details are thin on the ground for the moment, but it does appear rivals in the ‘classified ads’ segment are suggesting Facebook should not be allowed to diversify. The questionnaire sent to various players in the industry asks how many referrals came from the social media platform.

The question which seems to be asked here is whether it should be allowed to leverage such a massive user-base to steal business of rivals. The issue which Facebook might face is that it doesn’t collect revenue in the same way as those who are challenging the Marketplace.

Traditionally, the ‘seller’ is charged by the media outlet to engage the ‘buyers’ though Facebook has undermined this transaction. There is no charge to sellers to list products, with revenues being driven through sponsored listings and promotions embedded through the search results. Facebook is using its traditional ‘walled garden’ approach, creating an experience for users but charging companies for the pleasure of engagement.

Should the European Commission come to the consumer this is an abuse of market behaviour, rather than the evolution of commerce as we progress towards the digital economy, Facebook’s pursuit of new revenues by expanding the ‘walled garden’ model to new segments could be threatened.

Although revenues are looking healthy for the moment, a glass ceiling will be hit unless Facebook can offer new experiences. Advertising revenues have grown in-line with the userbase of the platforms, though there are only a finite number of users across the world. Facebook has to think of new ways to keep people on the platforms for longer, and for new reasons. Marketplace has been a success, though this is a threat to all diversification not just eCommerce.

From a revenue perspective, these new initiatives do seem to be aiding growth. Total revenues for the three-month period ending September 30 stood at $17.383 billion, a year-on-year increase of 28%, while net income was $6.091 billion, up 19%.

Daily actives users and monthly active users are also on the up, 9% and 8%, with the team now claiming 2.2 billion people now use Facebook, Instagram, WhatsApp, or Messenger on a daily basis.

Facebook is a business which is certainly facing risks, though the potential to diversify is quite remarkable. New elements such as the Marketplace or the dating features being tested, are re-engaging users at a time when the social media giant seemed to have lost its way. However, this progress could be undermined should European antitrust authorities believe the Facebook disruption is only possible because of an unfair advantage.

Government policy has held UK back in pursuit of digital economy

While the investment climate for connectivity infrastructure has certainly been improving in recent years, a proactive and prioritised government is critical to ensure rapid evolution to the digital economy.

Across the world, the climate for investment in connectivity infrastructure is improving. There is plenty of demand from both the consumer and governments to build the business case for deployment of fibre infrastructure, though more could still be done in certain markets.

“The digital economy does not work without the government, especially in the rural areas,” said Dick Van Schooneveld of Mahler Corporate Finance at Total Telecom Congress this week.

This is the challenge which some telcos and governments are facing when it comes to attracting investment; the political and regulatory environment is not always very helpful. There are some bright spots across the world, Portugal for example as well as Sweden or South Africa, but some are lagging considerably.

According to Mikael Sandberg, Chairman of VX Fiber, the political and regulatory climate in some nations, such as the UK, has been a point of suffocation when it comes to investments in connectivity infrastructure. This has allowed other nations to leap-frog the UK in pursuit of the riches promised by the digital economy.

The difference between these nations which have made strong progress and those who are lagging, is the ambition of the governments involved and the ability to see the bigger picture. In Portugal or Sweden for example, public/private partnerships to invest in full-fibre infrastructure might expensive but it is very attractive in the long-run.

Sandberg suggested more than 50% of Swedish enterprise organizations have adopted full-fibre connectivity products and the benefits are significant from a productivity perspective. The more successful these businesses are, the more jobs which are brought into the economy and the more tax which is contributed back to the government.

The gains are quite clear both in terms of revenue for the public coffers and political capital gained in the eyes of voting citizens.

And while there are clear and measurable benefits through prioritising such investments, the likes of the UK and Germany have suffered. There have been policies in play which have steered the government away from such lavish spending, austerity measures in the UK for example, though the repercussions of these decisions are perhaps being felt now.

There are still many questions which need to be addressed to fully understand and appreciate the impact of the digital economy, and of course many areas which need to be tackled to mitigate the risks. However, will the right political climate, connectivity infrastructure is looking like an attractive investment to the money men. Unfortunately, there are still countries which haven’t balanced the equation.

Australia sues Google for misleading users over location data

The Australian Competition and Consumer Commission has taken Google to court over allegations that it misled consumers over the collection of their location data.

The ACCC reckons that from 2017 at the latest Google broke the law when it made on-screen representations to Android users that it alleges misled consumers about the location data Google collected or used when certain Google Account settings were enabled or disabled. In short the ACCC is claiming Google gave users insufficient information to ensure their location data wasn’t collected if they didn’t want it to be.

“We are taking court action against Google because we allege that as a result of these on-screen representations, Google has collected, kept and used highly sensitive and valuable personal information about consumers’ location without them making an informed choice,” said ACCC Chair Rod Sims.

The problem is that Android has multiple settings that need to be adjusted if you don’t want your location data collected and the ACCC is alleging that Google didn’t flag up all of them. That will have resulted in some consumers thinking their location data wasn’t being collected when it still was. At the very least it seems Google has been insufficiently clear in communicating with Android users about this stuff.

Underlying a lot of the current wave of litigation towards internet giants is the desire by regulators and governments to retrospectively address the personal data land grab that characterised the first decade or so of the modern mobile device. Free services such as Android and Facebook have always sought payment in kind through the collection of personal data but have usually been very opaque in the ways they have gone about it. Regulators are now trying to shut the stable door after the horse has bolted.

US Senators suspect TikTok could be a national security threat

Republican Senator Tom Cotton and Senate Minority Leader Chuck Schumer have written to the Intelligence Community to request a national security investigation into social media video app TikTok.

Although TikTok has been paid particular attention in the request, the duo is asking other China-based applications with a significant US presence are also given some consideration. The move could represent an expansion of the aggression towards China and strain trade-talks between the two parties further.

“We write to express our concerns about TikTok, a short-form video application, and the national security risks posed by its growing use in the United States,” the pair said in the letter to Acting Director of National Intelligence Joseph Maguire.

“TikTok’s terms of service and privacy policies describe how it collects data from its users and their devices, including user content and communications, IP address, location-related data, device identifiers, cookies, metadata, and other sensitive personal information. While the company has stated that TikTok does not operate in China and stores US user data in the US, ByteDance is still required to adhere to the laws of China.”

The comments above pay homage to a Chinese law which requires Chinese companies to comply with requests from the Government and its intelligence agencies. While the law also states Chinese companies can refuse the request if it contradicts with the domestic laws in which the company operates, it is clear the US and others do not believe this clause holds much credibility or weight.

After being launched in 2017 by ByteDance, TikTok has proven to be a very successful additional to the social media scene. The app boasts more than 110 million downloads in the US alone and became the world’s most downloaded app on Apple’s App Store in the first half of 2018.

While this is the first-time politicians have waded into the waters, there has been criticism of TikTok from other avenues. US think tank Peterson Institute for International Economics described TikTok as a ‘Huawei-sized problem’, posing a national security threat to ‘the West’. The thinking here seems to be that the app collects location and biometric data and is unable to deny requests from the Chinese Government.

TikTok has proven to be an immense success in its short life, though the attention from security agencies in the US is an ominous sign. Alongside the shadow of doubt which will be cast on the app in the eyes of US citizens, it is not unfeasible for some sort of restrictions to be placed on the business.

Investors learn Silicon Valley can be volatile as Twitter tanks

Twitter’s share price was slashed by 18% as the market opened this morning, with the social media giant failing to find enough consistency to impress investors.

There was a brief glimmer of hope that Twitter might have been a company people could rely on, but rainclouds have once again emerged to spoil the parade. It certainly isn’t corporate doomsday for Twitter, but the management team will have to start ensuring some consistency if they want to remain in their current employment for the long-term.

Looking at the results, total revenues for the three-month period stood at $824 million, a 9% year-on-year increase, but short of the $876 million analysts estimated. Unfortunately for any optimists, the next quarter isn’t looking much better.

Twitter is forecasting revenue to be between $940 million and $1.01 billion for the next three months, down on the $1.06 billion which was estimated by analysts. Operating income is expected to be in the $130 million and $170 million range.

Although the steep decline in share price has largely levelled off, it does not make for comfortable reading.

The question which remains is what went wrong at Twitter? Looking at the materials presented during the earnings call, the management team is pointing to two areas. Firstly, seasonality. Twitter is suggesting fewer users were using the platform during the summer months than it was expecting, partly due to a lack of major events which were taking place over July and August.

Secondly, bugs in the legacy Mobile Application Promotion (MAP) product impacted the ability to target ads and share data with measurement and ad partners. The team also discovered certain personalization and data settings were not operating as expected. Twitter estimates the product issues reduced year-over-year revenue growth by 3 or more points in Q3.

Although these figures, this quarter and the next three months, are not the best it does not demonstrate the business is fundamentally flawed. This should not be seen as a company which will fall off a cliff, next year could be much more promising.

Firstly, the team is retiring legacy products and introducing new systems constantly, as well as creating more opportunities for those advertisers who are craving video engagement. This is an area which Twitter lags behind other social media platforms, though it could certainly catch-up.

Secondly, when you look at what is going to happen over the next 12 months, it would suggest there will be increased engagement from users and therefore increased opportunity for advertisers. In Europe, you have the UEFA European Championships, in the US, the Presidential Election and in Japan, the Tokyo 2020 Olympics. All of these events present major opportunities for Twitter to engage users.

Looking at user engagement, Twitter has decided to alter the way it reports figures, creating its own metric which will be known as ‘monetizable daily active users’ (mDAU). This could be a useful way to measure engagement, and the explanation below is taken from the letter to shareholders:

“Average mDAU for a period represents the number of mDAU on each day of such period divided by the number of days for such period. Changes in mDAU are a measure of changes in the size of our daily logged in or otherwise authenticated active user base. To calculate the year-over-year change in mDAU, we subtract the average mDAU for the three months ended in the previous year from the average mDAU for the same three months ended in the current year and divide the result by the average mDAU for the three months ended in the previous year.”

In short, it is the number of users which can be served ads each day. Using this metric, Twitter estimates it was able to serve ads to 145 million people each day, on average, which is a 17% increase on the same period of 2018.

The only issue with this metric is that it isn’t the most transparent when it comes to app downloads or concrete figures on daily usage. That said, according to data from Sensor Tower, it is still one of the most popular social media applications worldwide.

These results are not representative of a company which is in trouble, but more demonstrates the volatility of the internet segment. It was a bad three months, but that does not necessatily make Twitter a bad company. There are few companies which emerge from the garages of Silicon Valley which are genuinely reliable, but Twitter is one which will probably get better.

The fundamentals of the business are pretty sound. Assuming the team continue to improve the user experience and fix the bugs in the advertising machine, it will make money. Events across 2019 will attract more people only the platform, especially with social media likely to feature very prominently through the 2020 Presidential Election campaign. Perhaps the market needs to take a reality check on how much money it expects Silicon Valley to hoover up.

Google claims quantum computing breakthrough, IBM disagrees

Google says it has achieved ‘quantum supremacy’, as its Sycamore chip performed a calculation, which would have taken the world’s fastest supercomputer 10,000 years, in 200 seconds.

It seems quite a remarkable upgrade, but this is the potential of quantum computing. This is not a step-change in technology, but a revolution on the horizon.

Here, Google is claiming its 53-qubit computer performed a task in 200 seconds, which would have taken Summit, a supercomputer IBM built for the Department of Energy, 10,000 years. That said, IBM is disputing the claim suggesting Google is massively exaggerating how long it would take Summit to complete the same task. After some tweaks, IBM has said it would take Summit 2.5 days.

Despite the potential for exaggeration, this is still a breakthrough for Google.

For the moment, it seems to be nothing more than a humble brag. Like concept cars at the Tokyo Motor Show, the purpose is to inflate the ego of Google and create a perception of market leadership in the quantum computing world. Although this is an area which could be critically important for the digital economy in years to come, the technology is years away from being commercially viable.

Nonetheless, this is an impressive feat performed by the team. It demonstrates the value of persisting with quantum computing and will have forward-thinking, innovative data scientists around the world dreaming up possible applications of such power.

At the most basic level, quantum computing is a new model of how to build a computer. The original concept is generally attributed to David Deutsch of Oxford University, who at a conference in 1984, pondered the possibility of designing a computer that was based exclusively on quantum rules. After publishing a paper a few months later, which you can see here if you are brave enough, the race to create a quantum computer began.

Today’s ‘classical’ computers store information in binary, where each bit is either on or off. Quantum computation use qubits, which can either be on or off, as well as being both on and off. This might sound incredibly complicated, but the best way to explain is to imagine a sphere.

In classical computing, a bit can be represented by the poles of the sphere, with zero representing the south pole and one representing the north, but in Quantum computing, any point of the sphere can be used to represent any point. This is achieved through a concept called superposition, which means ‘Qbits’ can be represented by a one or a zero, or both at the same time. For example, two qubits in a single superposition could represent four different scenarios.

Irrelevant as to whether you understand the theoretical science behind quantum computing, the important takeaway is that it will allow computers to store, analyse and transfer information much more efficiently. As you can see from the claim Google has made, completing a calculation in 200 seconds as opposed to 10,000 years is a considerable upgrade.

This achieved can be described as ‘quantum supremacy’, in that the chip has enabled a calculation which is realistically impossible on classical computing platforms. From IBM’s perspective, this is a step forward, but not ‘quantum supremacy’ if its computer can complete the same task in 2.5 days.

If this still sounds baffling and overly complex, this is because quantum computing is a field of technology only the tiniest of fractions of the worlds’ population understand. This is cutting-edge science.

“In many ways, the exercise of building a quantum computer is one long lesson in everything we don’t yet understand about the world around us,” said Google CEO Sundar Pichai.

“While the universe operates fundamentally at a quantum level, human beings don’t experience it that way. In fact, many principles of quantum mechanics directly contradict our surface level observations about nature. Yet the properties of quantum mechanics hold enormous potential for computing.”

What is worth taking away here is that understanding the science is not at all important once it has been figured out by people far more intelligent. All normal people need to understand is that this is a technology that will enable significant breakthroughs in the future.

This might sound patronising, but it is not supposed to. Your correspondent does not understand the mechanics of the combustion engine but does understand the journey between London and South Wales is significantly faster by car than on horse.

But what could these breakthroughs actually be?

On the security side, although quantum computing could crack the end-to-end encryption software which is considered unbreakable today, it could theoretically enable the creation of hack-proof replacements.

In artificial intelligence, machine learning is perfect area for quantum computing to be applied. The idea of machine learning is to collect data, analyse said data and provide incremental improvements to the algorithms which are being integrated into software. Analysing the data and applying the lessons learned takes time, which could be dramatically decreased with the introduction of quantum computing.

Looking at the pharmaceutical industry, in order to create new drugs, chemists need to understand the interactions between various molecules, proteins and chemicals to see if medicines will improve cure diseases or introduce dangerous side-effects. Due to the eye-watering number of combinations, this takes an extraordinary amount of time. Quantum computing could significantly reduce the time it takes to understand the interaction but could also be combined with analysing an individual’s genetic make-up to create personalised medicines.

These are three examples of how quantum computing could be applied, but there are dozens more. Weather forecasting could be improved, climate change models could be more accurate, or traffic could be better managed in city centres. As soon as the tools are available, innovators will come up with the ideas of how to best use the technology, probably coming up with solutions to challenges that do not exist today.

Leading this revolutionary approach to computing is incredibly important for any company which wants to dominate the cloud industry in the futuristic digital economy, which is perhaps the reason IBM felt it was necessary to dampen Google’s celebrations.

“Building quantum systems is a feat of science and engineering and benchmarking them is a formidable challenge,” IBM said on its own blog.

“Google’s experiment is an excellent demonstration of the progress in superconducting-based quantum computing, showing state-of-the-art gate fidelities on a 53-qubit device, but it should not be viewed as proof that quantum computers are “supreme” over classical computers.”

Google measured the success of its own quantum computer against IBM’s Summit, a supercomputer which is believed to be the most powerful in the world. By altering the way Summit approaches the same calculation Google used, IBM suggests Summit could come to the same conclusion in 2.5 days rather than 10,000 years.

Google still has the fastest machine, but according to IBM the speed increase does not deserve the title of ‘quantum supremacy’. It might not be practical to ask a computer to process a calculation for 2.5 days, but it is not impossible, therefore the milestone has not been reached.

What is worth noting is that a pinch of salt should be taken with both the Google and IBM claims. These are companies who are attempting to gain the edge and undermine a direct rival. There is probably some truth and exaggeration to both statements made.

And despite this being a remarkable breakthrough for Google, it is of course way too early to get exciting about the applications.

Not only is quantum computing still completely unaffordable for almost every application data scientists are dreaming about today, the calculation was very simple. Drug synthesis or traffic management where every traffic signal is attempting to understand the route of every car in a major city are much more complicated problems.

Scaling these technologies so they are affordable and feasible for commercial applications is still likely to be years away, but as Bill Gates famously stated: “We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.”

Study suggests its quite easy to hack smart speakers

German security research consultancy Security Research Labs has dropped a security bomb on Amazon and Google, questioning the competence of security features and reviews.

As with all these revelations, the vulnerabilities were shared with the two companies prior to being made public. The hacks which have been discussed this week have now been addressed by Amazon and Google, though it does demonstrate the awareness consumers need to acquire should these devices maintain their presence in the living room.

“Alexa and Google Home are powerful, and often useful, listening devices in private environments,” the firm said in a blog entry.

“The privacy implications of an internet-connected microphone listening in to what you say are further reaching than previously understood. Users need to be more aware of the potential of malicious voice apps that abuse their smart speakers. Using a new voice app should be approached with a similar level of caution as installing a new app on your smartphone.”

Although there is no such thing as 100% secure anymore, the competency of Amazon and Google has been called into question here. Vulnerabilities are nothing new in the digital economy, though the simplicity of some of these hacks are a little bit embarrassing for the internet economy’s poster boys.

The first hack is quite remarkable in the sense it is so simple. Security Research Lab created an application using the normal means and even submitted the application for review by the Amazon and Google security teams. Once the application had been green lit, the team went back in and changed the functionality, which did not prompt a second review from either of the review teams.

In this example, Security Research Lab created a fake error message to replace the welcome message to make the user think the application had not started properly, for example ‘this application is not available in this country’. After forcing the speaker to remain silent for an extended period of time, another message is introduced requesting permission for a security update. During this second message, the user is prompted to change his/her password, which is then captured and sent back to the Security Research Lab.

It is often said the simplest ideas are usually the best, and this is the same in the hacking world. Phishing is one of the most simplistic means to hack an individuals account via email, and this approach from Security Research Lab is effectively a phishing campaign translated to the voice user interface.

Amazon or Google would of course never ask a user for their password in this manner, but we suspect there are many users who would simply go with the flow. According to a Symantec security report, 71.4% of targeted attacks involved the use of spear-phishing emails so the approach clearly works. And now it can be applied to the voice interface.

While losing your password is a worry, the second hack unveiled by Security Research Lab is a bit more nefarious.

Once again, the application designed for the smart speakers are altered after the review from the security teams at Amazon and Google, however it is to do with when the speakers actually stop listening to the user. By introducing a second ‘intent’ which is linked to a command for the smart speaker to halt all functionality, the session can be extended.

In short, the device continues to listen and record its surrounding, before sending the data back to the attacker. This is obviously a very simplistic explanation, for more detail we would suggest following this link to the Security Research Lab blog.

Both of these examples are remarkably simple to introduce as the security review function of both Amazon and Google looked to be nothing more than a box-ticking exercise. Changes are seemingly ignored once the application has been passed the first time, offering a lot of freedom to the hacker. Both Amazon and Google will now have introduced new processes to block such attacks and improve the security review system, though it does appear to be a massive oversight.

Aside from the inadequacies shown here by Amazon and Google, Security Research Lab is perhaps demonstrating some of the biggest dangers of the digital economy; a lack of awareness by the general public. Most people download apps without checking the security credentials or reputation of the developer, and the same assumption could be made for growing ecosystem for smart speakers.

Verizon banks on Disney for SVOD credibility

US operator Verizon has done a deal with Disney to offer its new Disney+ subscription video to its customers.

Rival AT&T has gone all in on video through its acquisition of Time Warner, which enables it to offer things like HBO Max to its loyal customers. Verizon has no offsetting video assets of its own and its digital content efforts in general seem to be struggling, so it’s compelled to look for partnerships if it wants to remain competitive.

So today we have the news that Verizon is the exclusive wireless carrier partner of Disney+ and will offer all 4G and 5G customers a year’s access to all those lovely cartoons and super hero movies, which includes Fios Home Internet and 5G Home Internet subscribers. Assuming Verizon customers attach some value to Disney+, this is effectively an $84 discount on their phone bill for a year.

“Giving Verizon customers an unprecedented offer and access to Disney+ on the platform of their choice is yet another example of our commitment to provide the best premium content available through key partnerships on behalf of our customers,” said Verizon Chairman and CEO Hans Vestberg. “Our work with Disney extends beyond Disney+ as we bring the power of 5G Ultra Wideband technology to the entertainment industry through exciting initiatives with Disney Innovation Studios and in the parks.”

Vestberg may have been making a nod towards a few minor 5G announcements it had drip-fed over the past few days. You can read an excellent summary of them on Light Reading here, which is testament to the conscientiousness of its writers. Verizon also seems to be focusing its efforts on densely populated environments such as sports arenas.

While it remains highly debatable that operators will ever make significant profit from content, it does at lease serve as a good sweetener to current and prospective customers. Verizon couldn’t afford to lose too much ground to AT&T in this area after its Time Warner acquisition, so partnering with Disney makes sense. But Verizon’s negotiating position will have been weak so it has probably paid a heavy price to retain SVOD credibility.