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Major business

Vestberg quits as Ericsson chief

After a period during which he came under sustained criticism for his remuneration as well as his ability to lead the communications technology giant, Hans Vestberg has stepped down as Ericsson chief executive.

Rupert Murdoch takes over Fox News as Roger Ailes resigns

Under fire Fox News chief Roger Ailes has bowed to the pressure applied by the US news channel’s senior management and has resigned from his post.

YouTube’s Content ID pays $2BN to content creators

The Content ID content rights management system from YouTube has now paid out more than $2 billion since its launch.

Media Analysis

Spanish millennials and generation Z prefer Mediaset

Spanish millennials and generation Z prefer MediasetSpain’s Mediaset is the selected TV group for both millennials and Z generation, with Telecinco and FDF being preferred entertainment options for the younger audience group.

TV, Internet take further ad-share from traditional media in Spain

The Spanish advertising market keeps changing, as more traditional media lose share while TV and the Internet drive growth.

TV makers to amass display panels through 2016

The global TV display supply shortage is spurring Asia’s leading TV manufacturers to increase their panel purchasing in the second half of 2016, IHS Markit claims in its latest research.

Media Investment

Key FCC commissioner backs away from FCC STB reform plan

Federal Communications Commissioner Jessica Rosenworcel has publicly backed away from FCC Chairman Tom Wheeler’s plan to open up set-top boxes (STBs) to online media competition.

Content companies offer support for pay-TV’s Ditch the Box STB proposal

Programmers and content companies have filed comments to the Federal Communications Commission (FCC), noting that they could side with the backers of the Ditch the Box movement in a compromise proposal on reforming the set-top box (STB) industry.

HTC puts together $10BN VR investment alliance

HTC Vive has announced a $10 billion initiative to fund virtual reality efforts, dubbed the VR Venture Capital Alliance (VRVCA).

Vestberg quits as Ericsson chief

After a period during which he came under sustained criticism for his remuneration as well as his ability to lead the communications technology giant, Hans Vestberg has stepped down as Ericsson chief executive.

ericsson 25 july 2016Vestberg had been CEO since 2010 and will be replaced with immediate effect as president and CEO by current CFO Jan Frykhammar as an interim measure. Commenting on his departure, Vestberg said: “I have had 28 fantastic years at Ericsson, the last seven as CEO. As the industry enters a next phase, driven by 5G, IoT and Cloud, it is time for a new CEO to step in and continue the work to ensure Ericsson's industry leadership.”

Chairman of the Ericsson board, Leif Johansson added: “Hans Vestberg has led the company for seven years through significant industry and company transformation ... However, in the current environment and as the company accelerates its strategy execution, the board of directors has decided that the time is right for a new leader to drive the next phase in Ericsson's development.”

The search is on for a new exec who will have to tackle a number of issues, most notably reinvigorating revenues after a period in which like-for-like sales have fallen for seven consecutive quarters. In its last quarter ended 30 June 2016, Ericsson reported that sales decreased by 11% year-on-year, 7% when adjusting for comparable units and currency. It said that mobile broadband sales continued to decline particularly in markets impacted by a weak macro-economic environment. Gross margin declined to 32.3% (33.2%) year-on-year, mainly due to a larger share of mobile broadband coverage business with lower hardware margins, and a higher share of services business.

The company admitted that further actions were needed to reduce cost, targeting a new annual run rate of operating expenses, excluding restructuring charges, of SEK53 billion in the second half of 2017.