LA Tech Updates: Disney Earnings Include Big Mulan News; Microsoft Backs Irvine Chipmaker

Leslie Ignacio

Leslie Ignacio is dot.LA's editorial intern. She is a recent California State University, Northridge graduate and previously worked for El Nuevo Sol, Telemundo and NBC and was named a Chips Quinn Scholar in 2019. As a bilingual journalist, she focuses on covering diversity in news. She's a Los Angeles native who enjoys trips to Disneyland in her free time.

LA Tech Updates: Disney Earnings Include Big Mulan News; Microsoft Backs Irvine Chipmaker

Here are the latest updates on news affecting Los Angeles' startup and tech communities. Sign up for our newsletter and follow dot.LA on Twitter for more.

Today:

  • Disney Plus Surpasses 60 Million Subscribers
  • Rocket Lab Boosts Payload Capacity
  • Microsoft Backs Maker of Voice-Activated Chip, Syntiant, in $35M Round

          Disney Plus Surpasses 60 Million Subscribers

          black smartphonePhoto by Kon Karampelas on Unsplash

          Disney's earnings report Tuesday quantified the damage wrought by COVID-19 in the company's third quarter — which was entirely enveloped by the pandemic.

          Each of Disney's four business segments suffered losses except for its direct-to-consumer and international operations, which includes the company's streaming app, Disney Plus.

          The company also released new details about its release plans for the blockbuster live-action film, Mulan.

          First, the revenue figures by segment, compared to 2019's corresponding quarter:

          • Media Networks fell 2% to $6.6 billion
          • Parks, Experiences and Products tumbled 85% to $2 billion
          • Studio Entertainment dropped 55% to $1.7 billion
          • Direct-to-Consumer and International climbed 2% to $4 billion

          Disney Plus now has over 60 million subscribers, the company reported, a milestone Disney had previously announced it hoped to surpass by 2024. Add in ESPN+ and Hulu, and the company's total subscriber count now tops 100 million. Disney chief executive Bob Chapek said these numbers give the company confidence to "pursue even more innovative and bold initiatives as we grow our business."

          The day's headline-grabber: Disney will release Mulan on Disney Plus in most markets where the service is available, including the U.S., rather than premiere it on the big screen. That's a big shock to the movie industry, where the theatrical release window usually gives movie theaters an exclusive several-months period to show films before they reach home viewers. Mulan, which was originally meant to hit theaters in March, is perhaps the highest-profile and biggest-budget film to be released direct-to-consumer. It will be available on September 4th for a price of $29.99.

          Chapek called the decision a "one-off event" rather than a new way of doing business. It was the first call of Chapek's without his predecessor Bob Iger on the line.

          Rocket Lab Improves Payload Capacity

          Rocket Lab increased the payload capacity for its Electron launch vehicle to 600 pounds, far above the 225 kg it could support when the Electron launch vehicle first appeared in 2017.

          "When we created Electron, we set out to develop a launch vehicle that small satellite operators would turn to when they needed a dedicated ride to a unique orbit on their schedule," founder and CEO Peter Beck said in a statement.

          "We're proud to be delivering that capability and continuing to evolve our launch and satellite services to meet the market's ever-changing needs."

          The company attributes the improvement to advanced battery technology.

          The Long Beach-based lab is known for its 3-D printed and electric pump engines, known as Rutherford Engines, which company says are 90% more efficient than traditional gas pump engines. Their printing time: 24 hours.

          Rocket Lab is set to launch again later this month.

          Microsoft Backs Maker of Voice-Activated Chip, Syntiant, in $35M Round

          Microsoft's venture fund M12 led a $35 million investment round in Irvine-based Syntiant, a semiconductor-making company that's produced tiny voice recognition chips — smaller than a flea — that are faster than many others on the market.

          The company, which is also backed by Amazon's Alexa Fund, makes an "always-on voice interface" that reacts to speech. It has already shipped out a million of the units which are put into cellphones, smart speakers, earbuds and laptops.

          The venture capital arm of chip maker Applied Materials, Inc. also joined in the lead for the Series C round, along with Atlantic Bridge Capital, Alpha Edison and Miramar Digital Ventures also joined the round. The company has raised a total of $65 million since it was founded by four veterans of the chip industry.

          "It is a tremendous honor to know that some of the world's leading tech investors are supporting our growth stage, as we deliver our deep learning voice solution to customers across the globe," said Kurt Busch, co-founder and CEO of Syntiant. "We are especially thrilled that production volumes of applications using our neural decision processors are increasing and expect orders to ramp even higher throughout the remainder of 2020.

          It's estimated that the speech and voice recognition market is expected to reach $26.8 billion by 2025, according to report by Meticulous Research.

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          Cadence

          Airbnb Is Expanding Short-Term Rentals in LA, but Hosts Likely Still Won’t Profit

          Amrita Khalid
          Amrita Khalid is a tech journalist based in Los Angeles, and has written for Quartz, The Daily Dot, Engadget, Inc. Magazine and number of other publications. She got her start in Washington, D.C., covering Congress for CQ-Roll Call. You can send tips or pitches to amrita@dot.la or reach out to her on Twitter at @askhalid.
          LA house

          L.A.’s lax enforcement of Airbnbs has led to an surge of illegal short-term rentals — even four years after the city passed a regulation to crack down on such practices. But what if hosts lived in a building that welcomed Airbnb guests and short-term rentals?

          That’s the idea behind Airbnb’s new push to expand short-term rental offerings. The company is partnering with a number of corporate landlords that agreed to offer “Airbnb-friendly” apartment buildings, reported The Wall Street Journal last week. According to the report, the new service will feature more than 175 buildings managed by Equity Residential, Greystar Real Estate Partners LLC and 10 other companies that have agreed to clear more than 175 properties nationwide for short-term rentals.

          But prospective hosts in Los Angeles who decide to rent apartments from Airbnb’s list of more than a dozen “friendly” buildings in the city likely won’t earn enough to break even due to a combination of high rents, taxes and city restrictions on short-term rentals. Rents on one-bedroom apartments in most of the partnered buildings listed soared well over $3,000 a month. Only a few studios were available under the $2,000 price range. If a host were to rent a one bedroom apartment with a monthly rent of $2,635 (which amounts to $31,656 annually), they would have to charge well over the $194 average price per night for Los Angeles (which amounts to $23,280 per year) according to analytics platform AllTheRooms.

          Either way, residents who rent one of these Airbnb friendly apartments still have to apply for a permit through the City of Los Angeles in order to host on Airbnb.

          “[..Airbnb-friendly buildings] seems like a good initiative. However, from a quick look, it seems that given the rent, Airbnb revenue wouldn’t be enough to cover all expenses if the host follows the city’s policy,” says Davide Proserpio, assistant professor of marketing at the USC Marshall School of Business.

          In addition, since L.A.’s 120-day cap on short-term rentals still applies to the buildings on Airbnb’s listing platform, that greatly limits the number of longer-term guests a resident can host. Not to mention, some of the buildings that Airbnb lists have even shorter limits – The Milano Lofts in DTLA for example only allows residents to host 90 nights a year.

          Airbnb’s calculations of host earnings may be greatly misleading as well, given that the estimate doesn’t include host expenses, taxes, cleaning fees or individual building restrictions. For example, Airbnb estimates that a resident of a $3,699 one bedroom apartment at the Vinz in Hollywood that hosts 7 nights a month can expect $1,108 a month in revenue if they host year-round. But the Vinz only allows hosts to rent 90 days a year, which greatly limits the potential for subletters and a consistent income stream.

          Keep in mind too that since the apartment will have to serve as the host’s “primary residence”, hosts will have to live there six months out of the year. All of which is to say, it’s unclear how renting an apartment in an “Airbnb-friendly” building makes hosting easier — especially in a city where illegal short-term rentals already seem to be the norm.

          https://twitter.com/askhalid

          The Streamy Awards Prove that Online Creators and Traditional Media Are Still Disconnected

          Kristin Snyder

          Kristin Snyder is dot.LA's 2022/23 Editorial Fellow. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.

          tiktok influencers around a trophy ​
          Andria Moore /Charli D'Amelio/Addison Rae/JiDion

          Every year, the Streamy Awards, which is considered the top award show within the creator economy, reveals which creators are capturing the largest audiences. This past Sunday, the event, held at The Beverly Hilton, highlighted some of the biggest names in the influencer game, chief among them Mr. Beast and Charli D’Amelio. It had all the trappings of a traditional award show—extravagant gowns, quippy acceptance speeches and musical interludes. But, as TikTok creator Adam Rose told The Washington Post, the Streamys still lacks the legitimacy of traditional award shows.

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          Slingshot Aerospace Is Expanding Its Network of Telescopes To Make Tracking Data Even More Accurate

          Samson Amore

          Samson Amore is a reporter for dot.LA. He holds a degree in journalism from Emerson College and previously covered technology and entertainment for TheWrap and reported on the SoCal startup scene for the Los Angeles Business Journal. Send tips or pitches to samsonamore@dot.la and find him on Twitter @Samsonamore.

          Slingshot Aerospace Is Expanding Its Network of Telescopes To Make Tracking Data Even More Accurate
          Photo: Slingshot Aerospace

          Slingshot Aerospace, the El Segundo-based startup developing software for managing objects in space’s orbit, raised $40.9 million to build out its global network of sensors and recruit new customers both private and public.

          The round was a follow-on to Slingshot’s $25 million Series A-1 raise in March.

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