ReportsStats Q1 2018

“Competing without software is like competing without electricity.”
-Naval Ravikant (2016)

1. DRIVERS OF CREATIVE DESTRUCTION

“The great lesson in microeconomics is to discriminate between when technology is going to help you and when it’s going to kill you.” -Charlie Munger (1994)

MOBILE FIRST

“The smartphone is the sun and everything else orbits it.” -Ben Evans (2015) follow
7.6b total world population. Of them:
5.6b adults, people over age 15 (74%)
8.5b total mobile connections, SIM cards (111%)
5.1b unique mobile phone users (67%)
3.0b smartphone users, installed base (39%)
USA passed 50% of homes being mobile-only in 2017
6.4b w/ electric power (84%)
5.5b TV users (72%)
4.5b w/ access to working toilets (59%)
3.0b iOS+Android computers (39%)
1.5b PCs (20%)
1.2b laptop PCs (16%)
1.1b tablets (14%)
1/3 of preschoolers (Australia) own smartphones/tablets
2/3 of primary school-aged children (Australia) own smartphones/tablets
1.1b car owners (14%)
17% of adults (USA) own a voice-activated smart speaker
outpacing adoption rates of smartphones
13% of adults (USA) own a smartwatch

THE NEW U.N. (by pop or MAU)

“No nation imagines itself coterminous with mankind.” -Benedict Anderson (1983) must read
Security Council’s permanent members:
2.2b Christianity (29%)
2.1b Facebook (28%)
1.6b Islam (21%)
1.5b WhatsApp (20%)
1.4b China (19%)
Security Council’s non-permanent members:
1.4b India (18%)
1.1b Hinduism (14%)
1.0b WeChat (13%)
800m Instagram (11%)
780m QQ (10%)
550m Qzone (7.3%)
510m European Union (6.7%)
390m Sina Weibo (5.1%)
330m Twitter (4.3%)
330m USA (4.3%)
Not represented in the General Assembly:
1.2b non-religious (16%)
1.1b people with no legal identification (14%)

THE INTERNET

“On the Internet, nobody knows you’re a dog.” -Peter Steiner (1993)
4.0b active internet users (53% of world pop)
3.7b active *mobile* internet users (93% of internet users)
750m in China > pop of Europe
vs 460m in India, 290m in USA
3.8b email users (95%), 3.2b active social media users (79%)
23% of 8-11s and 74% of 12-15s (UK) have a social media profile
Wordpress powers 30% of the *entire* internet
vs 30% of all web traffic is porn (25m sites, 12% of total)
monthly unique visitors (USA, aggregate brand sites)
250m Google, 220m Oath (incl Yahoo), 210m Facebook
21 Mbps avg d/l speed mobile internet
77 operators in 49 countries completed pre-commercial 5G trials in 2017
USA to pioneer in 2018: high-res video + AR/VR will drive early adoption
proliferation of unlimited data plans, mobile data usage up 25% (YoY 2017)
10% of internet data on Surface web (indexed by search engines)
vs 90% on Deep web (not indexed by search engines)
fastest growing data on the internet
Dark Web: 100% anonymous
75% used for recreational drugs
$1 for a SSN, $20k to hire a hitman, $100k if target is VIP

CLOUD COMPUTING

“This (Dropbox) is the fastest-growing SaaS company we have ever worked with.” -Bryan Schreier (2017)
2.3b people use personal cloud storage (30% of world pop)
97% of internet users (USA) have used online storage
if byte of data = 1 grain of rice, then:
kB ≈ 1 cup, MB ≈ 8 bags, GB ≈ 3 shipping container
<$0.03/GB, current cost of digital storage vs $569/GB in 1990
world’s highest-capacity microSD card: SanDisk Ultra microSDXC UHS-I
400GB at $250, stores ~40hrs of full HD video
world’s largest-capacity SSD: Samsung PM1643
30.72TB with read/write speeds of 2.1 GB/s and 1.7 GB/s
Samsung surpassed Intel as world’s largest chipmaker (by 2017 revenue)
<$0.05 cost of 1m transistors in 2013 (vs $527 in 1990)
iPhone 6 CPU transistors = 625x 1995 Pentium transistors
people/businesses continue relentless “march to the cloud”
36% of global IT infrastructure spent = private+public clouds (2016)
vs 63% for traditional data centers (2016)
Google Drive: 800m registered users, 1m enterprise customers
Dropbox (pure-player): 500m users, 11m+ paying customers, $11.9b mkt cap read $DBX S-1
fastest SaaS company to $1b/yr recurring revenues (8.3 yrs)
Box (pure-player): 58m registered users, 10m paying customers, $2.8b mkt cap

THE BLOCKCHAIN

“What if this technology could do for the transfer of value, what the internet did for the transfer of information?” -Abigail Johnson (2017)
$265b network value of all 1.6k altcoins/tokens
21 crypto-assets >$1b in value
1 BTC > 5 gold oz, bitcoin overtook gold in Apr-2017
$2b+ bitcoin mining revenues YTD, vs $3.3b in 2017
BTC trading volume > GLD (biggest gold ETF)
CME certified by CFTC to trade bitcoin futures
Nasdaq confirms its exploring bitcoin futures
Coinbase has 20m users, available in 32 countries
was the #1 free app (App Store) for a week in Dec-2017
600 peer-reviewed papers on bitcoin, last 3yrs
cost for an attacker to take over 51% of mining network:
$6b+ in hardware, $11m+/day in energy consumption
USA adoption status quasi mainstream:
State of Nebraska: bill LB 695 would make smart contracts enforceable
State of Illinois: working on blockchain pilot for digitization of birth certificates
State of Delaware: ok to keep shareholder’s list (legally mandatory) on a blockchain
Australian Securities Exchange (ASX) starts using blockchain to clear/settle trades
London Stock Exchange + IBM to develop blockchain platform for issuing shares
Sierra Leone (7m+ pop) conducts world’s first govt election using blockchain
Venezuela’s state-backed cryptocurrency “petro” trading at $0.017

CAMERAS, ROBOTS, DRONES

“Drones will be as ubiquitous as sprinklers.” -Chris Anderson (2017) follow
iPhones+Android phones sold > Japanese cameras *ever*
1.3b iPhones sold (since launched)
29m GoPro cameras sold (since launched)
Google searches for ‘dashboard cam’ = 3x ‘autonomous driving’
Boston Dynamic’s bipedal robot Atlas does backflip watch
100k+ warehouse robots “employed” by Amazon
vs 125k warehouse employees
Walmart’s shelf-scanning robots rolled out in 50+ stores
10yrs ago drones were $m+ USA military secret tech
now Chinese drones rule the sky, DJI has ~70% mkt sh
$499 for its cheapest HD-video drone Spark
Australian lifeguards use drone to rescue two teenagers watch
Skydio R1 drone flies on its own and follows you
1.1m hobbyist drone fleet (USA), 870k registered owner-hobbyists
110k+ commercial drone fleet (USA), 74k certified pilots
<5% of Earth’s seafloor mapped
Saildrone startup redefining ocean data w/ unmanned sailing drones
1m/yr people killed in car accidents
California DMV: “safe to deploy autonomous vehicles on public roads”
42 carmakers issued testing permits (285 vehicles)

MACHINE LEARNING

“The highest forms of understanding we can achieve are laughter and human compassion.” -Richard Feynman (1988)
Microsoft achieves human-parity in speech recognition, >95% match
NLP translates Chinese news articles to Eng = human accuracy
Google words recognition surpasses human threshold, <5% error rate
Speech-to-Text API recognizes 120 lang: $0.02/min for audio
Read comp test: #1 Microsoft’s AI 82.65, #2 Alibaba’s AI 82.44, #3 human 82.30
cpu vision identifies skin cancer as accurately as a panel of doctors
“ChestX-ray8” has 100k+ chest X-Rays annotated images to train data
Paige.ai granted access to MSKCC’s database of 25m pathology slides
FBI’s facial recognition database includes 50% of adult pop (USA)
ICE has access to 2b license plate recognition database
assists in finding/deporting undocumented immigrants
fake celebrity-porn videos created using ML
mapping famous faces onto performers’ bodies
China has more PhD’s on AI than USA
Chinese AI companies funding (2017) > USA AI companies
AlphaZero becomes best Chess and Go player read “Techmate”
starts from blank slate, no historical data, except game rules
within 24hrs convincingly defeats world-champion programs in each case
The Washington Post’s AI-reporter “Heliograf” publishes 850 articles
its AI-moderator “ModBot”, approves/deletes comments real-time

SOLAR ENERGY

“You don’t need a weatherman to know which way the wind blows.” -Bob Dylan (1965)
0.08$/kWh solar energy cost, -100x since 1976
‘learning rate’ = cost falls 22% for every doubling in capacity
1.2b people around the world w/o power, untapped market!
new capacity globally: renewable > net fossil fuel (since 2011)
165GW renewable (2017) vs 28GW net fossil fuel
570m LED bulbs in 2017 = closing 160+ coal power plants
cumulative installed solar photovoltaic capacity
#1 China (80GW), #2 Germany (40GW), #3 USA (40GW)
USA: #1 source of new capacity additions, first time ever!
China: growth far outstripping other sources
Saudi Arabia (2nd largest oil producer) + SoftBank to build world’s largest solar farm
$200b investment will add 200GW in capacity
on Fri 26-May-2017 solar panels generated 24% of UK’s electricity
vs 23% by all 8 nuclear power stations
cumulative installed wind energy capacity
#1 China (150GW), #2 USA (80GW), #3 Germany (50GW)
fastest-growing occupations (USA): solar installers, wind turbine techs
all Tesla Superchargers being converted to solar/battery power
almost all will disconnect from electrical grid
100% of Apple Park and Google’s data centers powered by renewables

ELECTRIC VEHICLES special report

“Mr. Musk—who is 45 years old, the same age as Mr. Ford was in 1908 when he released the Model T.” -WSJ (2017)
52% of new car sales in Norway (2017): electric
first time fossil-fuel mkt sh below 50%
3m+ EVs currently on the road
China has largest EV fleet, surpasses USA
650k vs 560k, #3 Japan (150k+), #4 Norway (130k+)
300k+ Nissan Leaf sold: best-selling highway-capable EV
“ban all diesel cars” club: 7 of the top 10 economies
by 2030: Germany, India, Italy, Brazil
California targets 5m clean cars by 2030, up from 350k
$2.5b budget: 250k charging stations, $200m/yr in subsidies ($7k/car)
LA transport auth: convert all 2.2k buses into zero-emission fleet by 2030
by 2040: China, UK, France
EV-only lineup: Volvo (2019), Mercedes-Benz (2022), Peugeot (2025), VW (2030)
Porsche to invest $8b by 2020 to electrify entire lineup
appliances company Dyson bets $1.4b+ to build EV from scratch
UK obligates motorway service/gas stations to add charging points
$25b in battery purchase plan by VW > Tesla’s $18b plan
car dealers, brace for a lot of pain
50% of car maintenance attributable to internal combustion engine
$200 Chevy Bolt (annual maintenance cost) vs $600 VW Golf

CREATIVE CAPITAL

“An S&P 500 company is being replaced every two weeks.” -Richard Foster (2012)
23m total businesses in USA, 5k publicly listed companies
top 5 by mkt cap: hq=USA, exchange=NASDAQ, comp adv=tech
21 Chinese co went public on USA exchanges in 2017
#5 largest company in world: Tencent
hq=China, exchange=SEHK, comp adv=tech
52% of Fortune 500 companies in 2000, are now extinct
5k/yr startups/companies funded in USA (2017)
1k/yr new VC-backed companies started
$72b invested by USA VCs (2017)
10 states with VC ecosystem >$1b: #1 CA>$36b, #2 NY>$11b
code/product now priced in real time
$2.2b+ via Initial Coin Offering “ICO” (Jan-Feb 2018, ex Telegram)
$1.7b raised by Telegram, largest ICO to date read white paper (unconfirmed)
vs $0.7b invested by VCs (seed stage, USA, Q1 2018)
1/3 of new VC funds docs: explicitly allow purchase of crypto assets
$30b+ issued in P2P loans via LendingClub, 2.8m borrowers
$5b raised by social fundraising platform GoFundMe, 50m donors
$4b pledged to Kickstarter projects globally, 140k+ funded projects
$190m raised by 460 startups via AngelList (2016)
$150m paid to 50k artists using Patreon

2. WINNER TAKES ALL

“You call it monopoly, I call it enterprise.” -John D. Rockefeller (1911) watch episodes

APPLE (mkt cap $860b)

“Just the way he advertised: Jesus, Gandhi, Me!” -Bill Burr (2012) watch
$285b cash on balance sheet > Chile’s GDP
1.3b+ active devices across: iPhone, iPad, Watch, Mac, iPod, AppleTV
60%+ of Americans own an Apple product
iPhone: most successful product of all time
1.3b+ cumulative iPhones sold since launch (Q2 2007)
vs 400m Sony Walkman, 130m Nokia 3310 back in stock
$640 avg selling price, vs $200+ for rest of industry
#1 by installed base in China, 50% mkt sh in Beijing
two tablet markets: iPads and generic cheap black plastic
iPad = 89% of tablets >$200 in USA
biggest watchmaker in the world
overtook Rolex, 15m/yr Apple Watch vs 1m/yr Rolex
Apple Watch sales > all Swiss watchmakers (Q4 2017)
Apple Watch alone would be a Fortune 500 company
Google is paying $3b/year to remain the default search engine on iOS devices
$27b earned by iOS developers in 2017 > Starbucks Corporation’s total revenue
500m people walk into Apple’s 400+ retail stores, clothing/apparel to launch soon
$12b+ spent in R&D during 2017
500m Siri users, 100+ job posting for AI engineers
2nd largest EV fleet in CA with 45 SDV, behind GM

ALPHABET (mkt cap $720b)

“Google searches are the most important dataset ever collected on the human psyche.” -Seth Stephens-Davidowitz (2017) must read
7 products with 1b+ MAU each
Search, Android, Maps, Chrome, YouTube, Google Play, Gmail
87% mkt sh in online search
Android overtakes Windows as the *internet* most used OS
40% mkt sh, 2b active Android devices
Google Maps adds 11 Disney Parks to explore via Street View
satellite mapping outpacing Street View vehicles
buildings sometimes appear before roads do
800m/mo Google Drive users
4m paying customers on G Suite
2b Chrome installs in active use
#1 browser across all devices (51% mkt sh), vs Safari (#2, ~15%)
1.5b MAU on YouTube
$17b+ spent in R&D in 2017
Google Assistant: available on 400m devices
7m Google Home smart speakers sold
Pixel Buds handle real-time translation via Google Translate
Waymo: 1.5x (orders of magnitude) ahead of the rest
Waymo’s fleet > 4m self-driving miles on public roads
vs Uber’s 1m miles

MICROSOFT (mkt cap $705b)

“Here comes the sun (doo doo doo doo).” -George Harrison (1969)
90% mkt sh in desktop operating system
1b/day Windows devices (installed base)
500m/mo Windows v10 active devices
1.2b/day Office users, largest productivity service available
120m/mo paid active users (commercial licenses)
30m Office 365 consumer subscribers (cloud version)
Office 365 = 2x G Suite’s penetration in businesses
200k orgs using Teams (launched 2017) in 40 languages
400m Outlook users, 300m Skype users
500m LinkedIn profiles, 10m companies posting jobs
Word’s ‘Resume Assistant’ feature powered by LinkedIn writes your resume
100m Minecraft copies sold, 60m/mo Xbox Live users
$13b spent in R&D in FY2017
140m/mo Cortana users
Cortana can read emails aloud and take dictation for responses
Power Point Presentation Translator: real-time captions, 60 languages
Skype Translator: 10 real-time languages
11% mkt sh in cloud computing infra w/ Azure
14 consecutive qtrs: revenue growing triple digits
Xiaomi to use Azure for data storage, bandwidth and computing

AMAZON (mkt cap $700b)

“If Amazon is in your line of business: Sell now. If Amazon is not in your line of business: Sell now; your business sucks.” -@GSElevator (2017)
#1 online retailer: 45% mkt sh, 5% of *all* USA retail
#1 online grocery: 18% mkt sh (2x Walmart)
1/4 of USA homes buy groceries online
#1 ebook seller: 65% mkt sh
#1 company by R&D spending: $17b (2016)
700 quarterly earnings calls mentioned the word ‘Amazon’
2x ‘Google’ and 3x ‘Apple’
#1 cloud infrastructure provider: 40% mkt sh
AWS: fastest-growing enterprise tech company
#1 voice-powered speaker: 70%+ mkt sh
~20m Echo units w/ 30k skills control 4k smart devices from 1k+ unique brands
Echo Dot = best-selling amazon.com product (any manufacturer, any category)
#1 fulfillment company? #2 largest private employer in USA
32 Amazon Air planes, 6k trailers, 44% of USA pop within 20mi of fulfillment node
Amazon Go Stores: no cashiers, no registers, no lines
#4 in ads: surpassed Twitter+Snapchat. Going after Google+Facebook
50%+ online searches for products start/end on amazon.com
most essential app for 18-34s
80m+ Amazon prime members: $1.3k annual spending by member
vs $1k/yr by Amazon customer, vs $1.7k/yr by Echo owner

FACEBOOK (mkt cap $465b)

“If you’re offered a seat on a rocket ship, don’t ask what seat! Just get on.” -Sheryl Sandberg (2012)
70%+ mobile social traffic, 30%+ digital ad revenue
1b+ use Facebook, Groups, Messenger, WhatsApp ea mo
70m biz profiles, 5m/mo active advertisers
$8b R&D in 2017
Facebook: 2.1b MAU, 1.4b DAU
210m (10%) duplicate accounts, 60m (2%) fake accounts
Messenger: 1.3b MAU w/ 500 FTE
goal: never dial a 1-800 number again
56% of people rather message than call customer service
2.5m/day new groups created
400m/day call/video chat, 20m businesses, 200k bots
100m interacting with ‘M’, messenger’s virtual assistant
WhatsApp: 1.5b MAU with 250 FTE
80% of SMB in India+Brazil use WhatsApp to communicate with customers
begins verifying biz accounts (green checkmark on profiles)
WhatsApp for business launched in USA, Mexico, Indonesia
Instagram: 800m MAU with 500 FTE
25m biz-specific profiles, 2m/mo active advertisers
blue checkmark = seal of legitimacy, black market verifications sell from $1k-7k
$1m worth of “influence” for a single Beyoncé Instagram (1 photo+caption)

TESLA (mkt cap $45b)

“Musk has made every Tesla customer a venture capitalist.” -Steve LeVine (2016)
#2 most valuable USA car maker: ahead of Ford, trailing GM
creating the best car ownership experience on the planet
buy online + mobile service (~30% of all service jobs)
$1.4b R&D in 2017: Tesla’s FTEs = 1/5 Ford, = 1/3 GM
100k+ vehicles delivered in 2017, ~2% of cars sold in USA
*European* sales: Model S > Mercedes S Class > BMW Series 7
Fremont plant running at 1/3 of a BMW or Toyota plant
Model S, starts at $80k, longest-range (WR) electric sedan
Model S P100D with “Ludicrous+” goes 0-60mph in 2.389s
faster than any Ferrari or Lamborghini
Model X, starts at $80k, longest-range electric SUV
NHTSA awarded a 5-star safety rating, 1st for any SUV
Model 3 starts at ~$35k
0-60mph in 5.6s, 130mph top speed, 220mi range
500k+ reservations at $1k deposit
Roadster 2G, to be quickest production car ever: 0-60 mph in 1.9s
reservations starts at $50k, production starts in 2020
first 1k ‘Founder Series’ reservations require full price of $250k *upfront* place reservation
Semi truck to rollout in 2019, reservations at $20k deposits: UPS x120, PepsiCo x100
Energy now 12% of revenue, Home Depot to begin selling solar panels

CHINA*

“The work ethic in Chinese tech companies far outpaces their US rivals.” -Michael Moritz (2018)
* More to come next quarter.
must read “Silicon Valley would be wise to follow China’s lead”

3. DISRUPTING THE INCUMBENTS

“The battle between every startup and incumbent comes down to whether the startup gets distribution before the incumbent gets innovation.” -Alex Rampell (2015) follow

DATING

“So, I asked him: What did you search? And he goes: Jewish and my zip code!” -Aziz Ansari (2015) watch
#1 place (USA) where singles met their last first date: app
53% of singles have created a dating profile
40% of singles have dated someone they met online
Tinder: 45m active users, 3m paid members
#2 app by consumer spend global 2017 (AppStore+GooglePlay)
vs #1 = Netflix… “Netflix and Chill?”
#1 in the UK, Australia, Germany, Poland, #4 in USA
Match Group owns 4 of top 5 brands
Tinder, Match.com, OkCupid, Plenty of Fish
7m paid members in total
Bumble: 30m active users
$b acquisition offer by Match Group, rejected
both companies copying and suing each other
13m members on Seeking Arrangement (Sugar Daddy dating site)
1/7 of kids ages 12-17 have sent a sext (sex+text)
increases 4%/yr each additional year of age
UK’s compulsory age verification check for online porn, deadline delayed
porn is the biggest development in sexuality research ever
Pornhub: 20m registered users, 80m/day visits to pornhub.com, 100b/yr video views

TAXI-BIKE RIDE

“The height of civilization isn’t the poor owning cars but the rich sharing bikes.” -Horace Dediu (2017)
price of NYC taxi medallion: from $1.3m in 2013 (record price)
to <$240k avg in March 2018
NYC Council considering cash bailout for medallion owners
ride-hailing services overtook rental cars
first studies out: ride-hailing increased traffic congestion
Uber moves more people than the entire airline industry
more people using Uber in NYC than yellow cabs
5yrs+ to reach first 1b rides, 6mo to reach 2nd, 4b in 2017
630+ cities, 80 countries, 15m rides per day
Lyft Q1 2018 = 20th consecutive qtr w/ 100%+ YoY rev growth
660 cities, 95% of the US population, all 50 states, 10m rides per week
375m rides in 2017, 30% USA mkt sh (vs Uber 70%)
Dockless bike-sharing: 16m bikes in China, replacing 10% car travels
Shanghai has 1.5m sharing bikes on its streets (1 bike : 16 resident)
Ofo and Mobike claim 100m users in China’s tier-1 cities
Hellobike claims 100m users across 160 tier-2 and 3 cities
Dockless bike, e-bike and e-scooters company Limebike (USA)
operates in 32 USA cities, 3 European cities
$1 to unlock and $0.10/min of riding
Uber partners with bike-share JUMP in SF, Lyft with Baltimore Bike Share program

VOICE ASSISTANTS special report

“Alexa, what’s the impact of the shift to voice search over the internet?” – Fortune.com (2017)
people speak ~150 words/min, vs type ~40 words/min
voice speech recognition tech = open source
84% of 14-17 year olds using voice assistant in their smartphones
best-selling consumer gadget 2017: smart speaker
35m units shipped in 2017, up from ~5m in 2016
fastest-growing consumer tech, to surpass 50m by 2018
16% Americans own a smart speaker, up 128% (2016)
70% mkt sh: Amazon’s Echo
25% mkt sh: Google Home
#2 location of smart speaker: kitchen
most common shop-by-voice category: groceries (20%)
Apple: HomePod powered by Siri, starting at $349
Microsoft: the Harman Kardon Invoke to be powered by Cortana
Facebook: working to release “Aloha” to market
Alibaba: announces Tmall Genie X1, powered by AliGenie
Samsung: developing a speaker, powered by Bixby
Garmin: launches car navigation Speak, powered by Alexa
Ikea: lightbulbs that integrate with Alexa
Sonos: announces smart speaker S13, supports multi-voice platforms
Bose: announces QC35 II headphones, powered by Google Assistant

TELECOMMUNICATIONS

“😂 word of the year 2015” -Oxford Dictionaries (2015)
text messaging is the most used data service in the world
first SMS message went out in 3-Dec-1992
vs 60b/day messages on WhatsApp
vs 38b/day messages on WeChat
400m active users on Apple’s iMessage, launching for biz
50% of USA household no longer have landlines
2m+ developers on Twilio’s cloud communication API
English is the most common language for web content
50%+ vs #2 Russian=7%, #3 German=6%
“Face with Tears of Joy” emoji = most popular emoji
most-used emoji on Twitter, 2x more than ❤ (#2)
Unicode approves 69 new unique emojis
newcomers include a bagel, a skateboard, a parrot
open source Signal Protocol powers the encryption of messages across:
Facebook’s WhatsApp, Microsoft’s Skype, Google’s Allo
Slack: 6m daily active users
50k paying companies, 43 from the Fortune 100
used by Police Dept of Hartford, CT
~3t photos taken on film ever, 1t by iPhone users (2016)
most pictured: #1 scenery, #2 information I need to remember

ADS=FRAUD

“So it learns information about me?” -Ron Swanson (2017) watch
$200b internet ad spending > TV ad spending
*mobile* ad spending (UK) > TV ad
web advertising is a duopoly
$75b Google > print ad industry
$40b Facebook > radio ad industry
700 ad networks w/ 100k+ clicks analyzed = 15% avg fraud
only 23 networks = fraud-free
8 networks = 100% fraudulent, 35 networks = 50% fraudulent
480 of the top 50k websites track visitors’ keystrokes
1.9b stolen passwords/usernames on the black market
Google removed 3.2b ads for policy violations, up from 1b in 2016
320k publishers blocked, up from 100k
fake WhatsApp downloaded by 1m+ users
FBI: 1 in 4 victims respond by wiring money to fraudsters (USA)
two types companies: been hacked, don’t know they’ve been hacked
Global ad blocking users: 380m mobile, 230m desktop
100m active devices use Adblock Plus
privacy search engine DuckDuckGo included in Apple’s Safari browser
4k+ websites infected with Coinhive (mines cryptocurrencies in the background)
YouTube viewers’ CPUs were being used to mine cryptocurrency via ads

PAYMENTS

“Apps are creating cashless societies.” -App Annie (2018)
credit/debit cards payments > cash payments
Visa + Mastercard ≈ 75% mkt sh, get paid ~3% fee per tx
2b people remain unbanked
$1b+/day now processed by mobile money industry
700m registered accounts worldwide
$188 moved monthly by the avg mobile money customer
PayPal: 227m active accounts incl 18m merchant accounts
$10b payments via Venmo in Q4 2017
worth more than American Express, $90b+ vs $80b
partners w/ Baidu Wallet and w/ Facebook Messenger
Square: 90m customer profiles, 2m SMB using Square
available in 30k stores, 7m active Cash App users
$2.5b in credit to 140k firms through Square Capital (since ’14)
50% of USA shops now accept Apple Pay
Apple Pay Cash (P2P service) live, ask Siri and pay
Walmart Pay: 3rd most used wallet in USA
behind Samsung and Apple, but larger than Android pay
Stripe: credit cards and ACH debits transactions across 25 countries
supports/partners with ApplePay, WeChat Pay, Alipay
600m WeChat Pay users, 450m Alipay, 100m Baidu Wallet

COMMERCE

“World’s largest company by sales (Walmart) is now the perceived underdog.” -The Economist (2017)
6.7k retail stores closed in USA 2017 > 6.2k in 2008
growth rate for mobile tx = 4x desktop, = 10x brick and mortar
$830+ ARPU global ecommerce (consumer goods)
#1 UK $2.1k, #2 USA $1.8k, #14 China $0.9k
$750b online sales (China), 74% mobile, 15% of retail sales
$25b Alibaba’s singles day
hits $1b in 2min, $10b in 1hr 6min
90% mobile, 810m+ orders made
$445b online retail sales (USA), 46% mobile, 11% of retail sales
USA largest shopping events (by sales, 2017)
$6.6b Cyber Monday, biggest day in USA history
$5.0b Black Friday
$108b holiday season (Nov+Dec)
holiday debit+credit card sales: Amazon > Walmart (first time)
Walmart to acquire 40% of Flipkart, India’s #1 online marketplace
Flipkart claims 100m users, ahead of Amazon
Walmart.com to expand online grocery delivery service
from 6 metro areas to 100+, to cover 40%+ of USA pop
Canadian platform Shopify has 600k+ merchants
6yrs to hit first $b in GMV, latest $b in 4 days

TV

“For those of us climbing to the top of the food chain, there can be no mercy. There is but one rule: hunt or be hunted.” -Francis Underwood (2014)
2018 budget for original programming
$8b Netflix, $5b Amazon, $3b Hulu, $2b HBO, $1b Apple, $1b Facebook
Netflix 🏆=Oscars=2: 100m+ paid subs globally
#1 non-game app by revenue (App Store + Google Play)
USA: 50m+ paid subs > all cable companies combined
libraries: #1 Japan 6.3k titles, #2 USA 5.6k (up 2x since 2013)
Amazon 🏆=3: movie library is 2x Hulu, 4x Netflix
26m USA subs,  bidding for Premier League streaming Rights
Disney: ends deal with Netflix, to launch streaming service in 2019
Sports (ESPN Plus) + Family (Disney/Pixar)
90m ESPN subscribers, crown jewel of cable TV
Hulu (controlled by Disney): 12m subscribers (May-2016)
1st streaming service to win an Emmy for best drama
Time Warner: 2m HBO Now subscribers, 2m downloads for PeopleTV app
Apple: partners with Steven Spielberg, closes J. Aniston and R. Witherspoon
acq rights for TV project from Damien Chazelle (writer/director of “La La Land”)
Baidu-controlled iQiyi has 50m+ paying subs read $IQ F-1
YouTube TV ($40/mo) includes CNN, ABC, CBS, FOX, ESPN, NatGeo, NBA TV, et al
available in ~100 markets, claims 300k+ subs
Snapchat + NBC: “Stay Tuned” reaches 29m views, live broadcast 2018 Winter Olympics

MUSIC

“We don’t ask you for free iPhones. Please don’t ask us to provide you with our music for no compensation.” -Taylor Swift (2015)
streaming is now industry’s biggest source of revenue
music is now a growing industry, after 15 yrs of decline
65% of USA music revenue in 2017: streaming
songs streamed in USA (2016) > all digital downloads to date
US Copyright Royalty Board:
“streaming services must give songwriters a 44% pay hike”
Spotify revenue > 20% of global music industry
70m+ paid subscribers, 160m+total active, direct NYSE listing read $SPOT F-1
exchanged <10% equity stake w/ Tencent Music Entertainment
38m paid subscribers on Apple Music
USA-based subscribers growing 5%/mo vs 2%/mo for Spotify
Taylor Swift (highest paid musician globally) released all her albums on Spotify
releases *video* of “Delicate” on Spotify before YouTube
“Reputation” album released 10-Nov-17, finished 2017 as best-selling album of 2017
YouTube Red + Google Play Music: to merge and simplify their consumer offerings
98 YouTube music videos with >1b views vs 9 Spotify songs have passed 1b streams
partnered w/ Ticketmaster to sell concert tickets
“Hello” by Adele, fastest video to hit 1b views on YouTube: 87 days
vs “Shape of You” by Ed Sheeran, fastest song to hit 1b streams on Spotify: 153 days
“Despacito” by Luis Fonsi, released on Jan-2017, most viewed YouTube video: 5.1b views watch

GAMES

“Everyone else is trash.” -Yiliang “Doublelift” Peng (2013)
$120b global gaming revenues (2017)
“Games” apps: #1 by revenue, #1 by downloads
$10b+ markets: #1 Japan, #2 USA, #3 China
75% / 90% of total rev on App Store / Google Play, respectively
15m Switch consoles sold by Nintendo to date
fastest-selling console in USA
vs 100m Wii sold, best-selling console (launched in 2006)
78m Sony PlayStation 4 consoles sold to date
2m+ Sony PlayStation VR headsets sold
Unity: #1 game engine, 2.4b devices running “Made with Unity”
Steam: #1 PC game distribution platform, 35m DAU players
Discord: #1 voice+text chat for gamers, 14m DAU
viewership metrics company Nielsen launches new division, Nielsen Esports
Twitch.tv (Amazon-owned): 2m+/mo unique content creators, 15m DAU
1m/mo avg viewership > MSNBC > CNN
100m/mo gather to broadcast, watch, and talk about video games
League of Legends: world championship global viewership
43m unique online, 15m peak concurrent, 20k inside stadium
vs NFL: 18m stadium attendance (2017 season), $13b revenues
vs Premier League: 14m stadium attendance (2017 season), $5b revenues

BONUS

“Facts don’t care about your feelings.” -Ben Shapiro (2016)
Brokerage: 3m accts on $0 fee app Robinhood (vs 11m for Charles Schwab)
Encyclopedia: blockchain-based Everipedia claims 3m/mo users
Grammar: 7m/day checking grammar on Grammarly
Gym: 4m Fitness Blender subscribers
Homework: 100m 12-18 year olds asking questions on Brainly
Locksmith: 1k KeyMe smart-kiosks across USA
Lost & found: 15m Tile trackers sold, Samsonite luggage “Tile-inside”
Meditation: 22m downloads of Calm (Apple app of the year)
Muslims: 10m/mo pray using Muslim Pro app
Neighborhoods: 137k neighborhoods on Nextdoor
Period: 10m women track their period with Flo app
Pets: 140k vetted dog sitters on Rover
Policy: 180m users petitioning governments on Change.org
Religion: 20k religious communities on Pray.com (hackathon hosted by the Vatican)
Rockets: launched by SpaceX (YTD 2018) > any company/country
Spas: 600m classes/appointment via wellness marketplace MindBody
Textbooks: 70k students at 50 campuses using online textbooks by Packback
Theaters: 2m subscribed to “one movie a day” service MoviePass
Trivia: 2m+ concurrent players during Super Bowl on live trivia app HQ
Virtual world: Second Life has 800k MAUs