Real Estate, The Economy, and News

Friday, December 15, 2017

Disney's Acquisition of Fox Expected to Drastically Change the Entertainment Industry

Most companies in this day and age are subsidiaries of other companies and there is a relatively small number of parent corporations that own the majority of the other corporations. Disney Inc. is one of those parent companies, and their business decisions over the past couple of decades have made them one of the largest and most powerful corporations in the world. According to an article by the staff of the L.A. Times, Disney's most recent move is to acquire 21st Century Fox, a deal that could completely reshape the entertainment industry.

Most of Disney's sprawling growth has happened since Robert Iger was named CEO in 2005. However, even before Iger, Disney Inc. had begun to acquire competitors and build an entertainment empire. In 1996, Disney made a move that first brought Iger to the company: they purchased Capital Cities/ABC and thereby gained ESPN as well (which was a subsidiary of Capital Cities) for $19 billion. Iger was president of Capital Cities at the time, and the acquisition introduced him to the executive arena of the Disney entertainment powerhouse.

Then, in 2006, after Iger was made CEO, Disney made its second main power move, this time to address a decline in its animation department. After several animated films that flopped in the box office, Disney spent $7.4 billion to acquire Pixar Animation Studios in a stock deal, which allowed them to retain John Lasseter and Ed Catmull, the geniuses behind Pixar hits like "Finding Nemo" and "Toy Story." The acquisition has since paid off many times, as the Disney-Pixar animation team has arguably become the best in the world.

The action film franchises were next on Disney's road to supremacy. In 2009, Disney purchased Marvel Films for $4 billion, and in 2012, they acquired Lucasfilm (and the Star Wars franchise) for another $4 billion. Since then, Disney has made dozens of movies set in the Marvel cinematic universe and has just released another movie set in the Star Wars universe, and will soon be opening a Star Wars Land at Disneyland. Additionally, by owning those two companies, Disney has put itself in a position to rival streaming sites like Hulu or Netflix by limiting the spread of their movies on competing streaming platforms. Then, by acquiring a controlling stake in BamTech (a streaming video company) in 2017, Disney has assured itself a competitive advantage in the online streaming market, both for sports (ESPN) and TV shows/movies.

Disney's latest move to purchase 21st Century Fox could be its most important decision in making sure it remains the most powerful entertainment company in the world. It's possible that government regulators will stop the $52.4 billion deal on anti-trust arguments, but if the purchase goes through, Disney will be able to add several existing shows (The Simpsons, Family Guy, etc) to its video streaming service, will gain a majority stake in streaming competitor Hulu, and will gain control of another studio, as well as Fox's television channels, including FX and National Geographic. Disney will be more powerful than any other company could hope to be, and that is likely to affect Hollywood in unpredictable ways,

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Friday, December 8, 2017

Over 51 Million People Flying Domestically this Holiday Season

Each year, especially leading up to the month of December, people across the country frantically scour the internet for the best airplane tickets to make it home in time for the holidays. Many people want to visit with family and the 21-day Christmas travel season is when millions of Americans choose to do so. Some people choose to drive or take a bus or train, but each year, the number of fliers continues to rise. According to Hugo Martin's L.A. Times article, this season's number of fliers increased by 3.5% from the same measurement last year.

Analysts expect that there will be over 51 million people traveling via plane throughout the upcoming holiday season. Over the last four years, airplane travel has been growing, especially in the month of December, and especially during the few days leading up to and following Christmas. Research shows that the increasing prevalence of the mode of transportation is likely due to improvements in the economy and competition between airlines, which make flights more affordable for the common consumer.

The law of supply and demand states that supply and demand tend to be inversely proportional, which means that as the supply of a good or service increases, the demand for it decreases. The same concept applies to the proportionality of demand/price or the inverse proportionality of supply/price. In other words, the more consumers demand a product, the more a company can charge for it. Because there are so many companies that offer the service of airplane transportation, the competition drives the price down. As more and more consumers choose to fly because of the lower prices, however, those same prices will likely be driven back up until the price reaches an equilibrium.

Economic analysts predict that this trend will lead to a total of more than $16 billion in profit split among the various domestic carriers, 5% more than last year. Additionally, over the past three years, airlines throughout North America have earned over half of the profit in the industry as a whole. Analysts expect that things might change quickly if the airlines aren't careful. Between rising costs, taxes, and governmental security laws, the various airlines may have to quickly adapt to successfully meet growing demands and keep their competitive edge.

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Friday, November 17, 2017

New FCC Rules Can Help Phone Companies Block Scammer Calls

No one likes getting dozens of calls a day from people they don't know. Whether from robocallers, telemarketers, or scammers, it can be annoying or even costly to deal with unwanted callers. Millions of Americans have placed themselves on the national Do Not Call registry, which makes it illegal for telemarketers to call you, but scammers don't care if they're breaking the law. Fortunately, according to an article by the Associated Press of the L.A. Times, the Federal Communications Commission passed a set of rules this week that will give phone companies greater ability to block unwanted phone calls from reaching their customers.

Before this week, phone companies could already block some unwanted calls. They were able to prevent scammers from using some types of technology that trick callers with fake Caller ID numbers. With the help of the FCC's latest update, they can also block calls that are likely to be from scammers. Some examples are calls from 911 area codes and calls from phone numbers that haven't yet been assigned to any customers. So, by leveraging the rules and some relatively simple computer programming, the phone companies can develop an automated way to block the worst of the scams from reaching you.

Tens of millions of robocalls are received throughout America each day. Some of those calls are legitimate, from pharmacies alerting you about a prepared prescription or from your local congressional representative trying to garner support in an upcoming campaign. The calls that people have more of a problem with are those that claim to be the IRS or tech support. Those calls can be annoying at best, and in many cases, can lead to identity theft and other costs, especially among elderly targets.

Some phone companies have developed databases where users can input information about calls received, which over time, can help future recipients to avoid and quickly block scam calls. They are also working on other technology that can determine if a call is actually coming from the person they're claiming to be. Either way, there is no definitive way at the moment to make 100% sure that you can't be contacted by a scammer. That being said, you can reduce your risk by avoiding answering the phone to numbers you don't recognize. You can also hang up immediately if a call sounds like a scam, and avoid giving any personal information. Be careful. Scammers can do a lot with any information you give them, so don't give them that opportunity.

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Friday, November 3, 2017

Millions of Kidde Fire Extinguishers Being Recalled

Emergency preparedness is important for everyone, both at home and at work. From earthquake kits to fire extinguishers, having the right equipment available can help you keep a bad situation from becoming disastrous. However, having a fire extinguisher won't do you much good in an emergency if it doesn't work properly. According to an article by the Associated Press of the L.A. Times, your fire extinguisher may currently be subject to recall.

Over 40 million extinguishers made by a company called Kidde are being recalled and replaced. This Thursday, the U.S. Consumer Product Safety Commission issued a notice regarding safety issues with 134 models of Kidde's plastic handle fire extinguishers. Over the years, various customers have reported issues with the extinguishers. The extinguishers didn't function properly for emergency personnel dealing with a car wreck in 2014, and since then, others have reported clogging of the nozzles.

The various extinguishers being recalled have been on the market for the past 4 decades, since 1973. Over 300 reports have been made of the extinguishers clogging or the nozzle coming off in emergency situations. Because of those issues, over a dozen injuries, nearly 100 reports of property damage, and a death have occurred. Kidde is offering replacement extinguishers to anyone affected by the recall. Their contact information is: (855) 271-0773 or at www.kidde.com.

Be safe. Emergency preparedness can go a long way toward protecting yourself and your loved ones (as well as your property) from irreversible damage. If you have a Kidde fire extinguisher, make sure to get it replaced ASAP. Even though the issues listed above were uncommon versus the number of extinguishers that worked properly, your safety is not worth the risk. Safety first!

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Thursday, October 26, 2017

"Honey" Browser Extension Automatically Inputs Coupon Codes for Online Shoppers

Many consumers prefer to do their shopping online as opposed to in brick-and-mortar stores. Shopping online, especially when you know exactly what you're looking for, can be cheaper, easier, and more expedient than taking the time to go to Wal-Mart or Target and pick up the latest device. Still, consumers want to get the best deal possible, especially when shopping online. Research shows that consumers are often hesitant to place an order online due to a feeling that they may be paying too much. In his L.A. Times article, David Pierson describes an innovative browser add-on called Honey that automatically finds discount codes for many shopping websites.

The extension is free for download on all Firefox, Safari, and Google Chrome browsers, and requires absolutely no effort on the part of the user. Simply by installing the add-on, the discounts will immediately begin popping up when a user goes to check out on thousands of shopping sites. The extension uses user-inputted data (like Waze) to determine which discount codes work best and which don't work at all, so each consumer using the app helps to make it better for the next user. Honey has over 5 million users, who have saved an average of $32 per month on items that they were going to purchase anyway.

This browser extension seems to be a win-win-win for everyone involved. Consumers get to find discounts that they wouldn't have otherwise been able to use on items that they were planning on purchasing anyway. The shopping sites tend to make more money because shoppers are 55% more likely to finish checking out when Honey has checked for potential discounts. Honey itself makes money because certain merchants pay to have their discounts made more visible, to increase customer traffic. Everyone is making money, without much of a risk to any one party.

About 9,000 of Honey's 21,000 affiliated merchants pays the company a commission for driving customer sales. One of their biggest issues, however, is that they have so far been unable to convince Amazon to get on board. Because Amazon has such a large share of the online shopping market, that could pose problems for Honey in the future. They hope that consumers will choose to use other websites, to keep the Seattle-based company from monopolizing the market and raising prices, but time will tell whether their efforts will be successful. Until then, Honey has an integrated feature for Amazon shoppers to let them know when prices of items in their cart have fluctuated. That feature may be enough to help Honey stay relevant in the Amazon-saturated market.

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Friday, October 20, 2017

Key Reinstallation Attacks Can Allow Criminals to Hack Your WPA-2 Wireless Communication

Technological advancement, which can be greatly beneficial in many ways, can also make it more difficult for you to protect your personal information. Years ago, before the advent of the internet, rates of identity theft were far lower than they are today. Identification documents and private data were not nearly as available before the era of the internet. However, now that hacking is so prevalent, we must do what we can to improve our cybersecurity and prevent hackers wherever possible. According to Samantha Masunaga's recent L.A. Times article, the latest vulnerability to address lies in WPA-2 protocol, the current industry standard for Wi-Fi protection.

WPA-2 is the fundamental protection built into most wireless communication available around the world. Until recently, it was considered the best way to protect your online information, but researchers in Belgium found a vulnerability in the WPA-2 protocol that can allow a hacker to use "key reinstallation attacks" to intercept wirelessly transmitted information, even over encrypted networks. The hacking technique, also known as "Krack," is able to target systems powered by operating systems including Windows, Apple, Android, and Linux. From computers to modems to Wi-Fi enabled refrigerators; anything on your network could potentially be hackable.

The researchers found that Kracking is most effective against computers running Linux and devices running the latest version of Android OS. The hack could be used to capture information in sent emails, credit card numbers, browsing data, and even photos and videos sent to contacts. The hacking technique, while powerful, may not be as great a cause for worry as might be expected. According to the analysts, the hacker would have to be highly skilled and in close proximity to the targeted device. Therefore, any hacker looking to use Krack would likely target large corporations, where they might find a better payout.

To protect yourself, you should download any patches released by manufacturers as soon as they are released. For Windows devices, leaving "automatic updates" selected will let your computer take care of the threat for you. Many Apple devices have already received fixes for the vulnerability and others will receive software updates within the next couple of weeks. Google is working on releasing patches for Android devices as quickly as possible. Until that's all wrapped up, you can protect yourself by sending encrypted emails, being careful with online transactions from certain devices, and adding passwords to shared files that contain sensitive information.

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Friday, September 29, 2017

Ikea Acquires TaskRabbit App, Helping Customers Connect with Furniture Assemblers

Tens of thousands of Americans have tasks that they don't want to do themselves. Either the jobs are physically impossible, or require skills that they don't have, or are simply not worth their time. In an effort to address that common problem, in 2008 Leah Busque founded a company called RunMyErrand, which later evolved into the app known as TaskRabbit. People around the country can use the app to hire "Taskers" to run errands or do odd jobs, and TaskRabbit keeps a percentage for connecting users to workers. According to Tracey Lien and Samantha Masunaga's L.A. Times article, Ikea recently acquired TaskRabbit in order to pair up furniture-building Taskers with Ikea's customers.

TaskRabbit was one of the very first on-demand apps, where users could pay a fee or an hourly rate to get a job done. Since then, many other companies have come in to fill the market, from Uber to Postmates and everything in between. The acquisition of TaskRabbit was a logical one for Ikea because their customers generally already outsourced the job of putting together their furniture anyway. Many customers can't figure out how to assemble Ikea furniture, so it is often simpler for them to hire someone to do it instead. By acquiring TaskRabbit, Ikea is able to get the business on both ends.

From another perspective, Ikea acquired TaskRabbit as an investment, given that the app has been pretty successful over the years since its conception. The company provides a smartphone app that allows Taskers to connect with users looking to hire help. In exchange for providing the service and convenience of their app, TaskRabbit receives 30% of the hourly payment being given to the Tasker completing the job, which is a pretty large chunk of money when movers and furniture assemblers can be making anywhere between $30 and $80 per hour. Neither company has released a public statement about how much the company sold for, but it can probably be assumed that Ikea made a sound investment.

Other on-demand service companies like Uber and Lyft or Sprig and Homejoy have either had to rely on millions of dollars in venture capital and debt financing or have failed to raise enough money and have had to go bankrupt before ever obtaining success. TaskRabbit is different in that it's been profitable for quite a while. The company's acquisition by Ikea is probably a good thing for its future growth. Now that they are connected to the largest furniture company in the US, they have the resources to expand more rapidly and reach a larger, international base of customers.

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