The 3 new CEOs of Verizon, AT&T, and T-Mobile, Big Tech's quarterly earnings, and Zoom's misleading user numbers

Podcast Summary

• Changes in the tech industry and personal productivity tools: The tech industry is undergoing significant changes, and individuals are finding ways to make their professional lives easier through productivity tools like Canva for presentations.

  The tech industry and the world at large are experiencing significant changes, as evidenced by the recent earnings season, new CEO appointments at mobile carriers, and the ongoing impact of the pandemic. Additionally, people are finding ways to make their professional lives easier, such as using Canva for presentations. Maya found relief in using Canva for her recordable presentations, allowing her to reach a wider audience. The Vergecast team, including Paul Miller, who is leaving the podcast after 12 years, discussed these topics and shared their thoughts. Paul will be starting a new podcast soon, and the team expressed their appreciation for his contributions to the Vergecast over the years.

• Focusing on 'how' and 'what' instead of 'when' in the pandemic: Shifting focus from when things will change to how and what we will do during the pandemic can help us better prepare and adapt

  The COVID-19 pandemic continues to present many unknowns, and focusing solely on when things will return to normal may lead to disappointment. The White House's promise of a testing website has not been kept, leaving many in need of testing and adding to the uncertainty of the situation. As of now, over a million people in the United States have tested positive for COVID-19, but the true number is likely higher due to limited testing capabilities. Marybeth's article on our site and Ed Yong's piece in The Atlantic highlight the importance of shifting our focus from when things will change to how and what we will do as we navigate the pandemic's future. By recognizing the importance of these questions, we can better prepare ourselves for the ongoing challenges and adapt to the changes that lie ahead.

• Elon Musk's Controversial Views on Stay-at-Home Orders: Musk's opposition to stay-at-home orders drew criticism, emphasizing the need for informed decision-making and thoughtful discussions about pandemic management.

  During the recent earnings call of Tesla, Elon Musk expressed strong opinions against stay-at-home orders, comparing them to fascism. Musk's views were met with criticism, as experts warn against prematurely lifting restrictions and potentially causing a surge in COVID-19 cases. The discussion also highlighted the challenges of pandemic management, both from a scientific perspective and in terms of its impact on businesses. The importance of staying informed, following guidelines, and engaging in thoughtful conversations about the best ways to move forward was emphasized.

• Elon Musk's push for quicker reopening contradicts experts: Elon Musk's push for quicker reopening contradicts expert advice, potentially setting back progress in the fight against the pandemic

  During unprecedented times, people are coming together to make difficult decisions for the greater good, despite personal inconvenience. Elon Musk, known for his innovative accomplishments, has pushed for a quicker reopening of society, which some view as moving the Overton window. However, his approach contradicts the consensus of experts and the current state of the pandemic. The risks of getting it wrong are clear, as seen in the examples of New York City and Italy. The best solution currently is to follow the experts' advice and prioritize not infecting others. Apple and Google's contact tracing API is a step in the right direction, but it's important to remember that it's not a complete solution. The pandemic situation is complex, and there's no clear consensus yet. Musk's actions, while well-intentioned, could potentially set back progress if they contradict the expert advice.

• Apple, Google's contact tracing system sparks privacy debate: Apple and Google's contact tracing system faces support and criticism, with some advocating for more data collection and others emphasizing privacy and anonymity. Broadband providers have waived late fees, and Apple's latest iOS beta includes Face ID improvements and larger FaceTime call bubbles.

  There are ongoing discussions and developments in data privacy regulations, with Apple and Google's proposed contact tracing system being met with both support and criticism. While some politicians and European governments are pushing for more data collection, Apple and Google are testing their system with an emphasis on privacy and anonymity. Meanwhile, broadband providers have waived late fees during the pandemic, and Apple's latest iOS beta includes improvements for Face ID use with face masks and larger FaceTime video call bubbles. The FaceTime and Duo apps, which operate under the phone call metaphor, are compared to more flexible video conferencing platforms like Google Meet and Zoom, and House Party, which allows users to create open rooms for friends to join. Overall, these updates and discussions reflect the ongoing adaptation to new technologies and societal needs in the context of the pandemic.

• Understanding the unique social experiences of video conferencing platforms: Zoom prioritizes formal meetings, House Party offers a social hangout experience, and clarifying metrics is crucial in business communications

  The distinction between different video conferencing platforms lies not only in their technological capabilities, but also in the social experiences they offer. While some platforms, like Zoom, prioritize formal, intentional meetings, others, like House Party, aim for a more ambient, social hangout experience. This discussion also touched upon the importance of clarifying metrics in business communications, as Zoom's misleading daily active user numbers led to confusion and criticism. Overall, the conversation highlighted the evolving nature of digital communication and the importance of understanding the unique value propositions of various platforms.

• The Importance of Clear Communication and Robust Features in Video Conferencing: Companies must prioritize clear communication, precise language, robust security, and user experience to maintain trust and stand out in the video conferencing market.

  Transparency and clarity are crucial for companies, especially publicly traded ones, to maintain trust with their audience. The recent incident involving Zoom's blog post correction, where they inadvertently referred to their "daily participants" as "people," showcases the importance of being precise with language and avoiding obfuscation. This mistake, though unintentional, led to confusion and raised questions about the company's trustworthiness. Furthermore, Google Meet's free version launch, which includes features like more secure login and better control over who can join meetings, highlights the importance of offering robust security and user experience. However, WebRTC, the technology behind Google Meet and other web-based video conferencing solutions, can struggle to handle large meetings effectively, making native apps a more reliable choice for handling high volumes of users. Ultimately, companies must prioritize clear communication, robust features, and user experience to stand out in a crowded market and maintain trust with their audience.

• Focusing on core business as a utility-first platform gives Zoom an edge: Zoom's success lies in its single-minded focus on video conferencing as a core business, allowing it to outcompete larger tech companies with diversified portfolios.

  Zoom's success can be attributed to its focus on providing a high-quality video conferencing solution as its core business, while larger tech companies like Microsoft and Google may have overlooked this opportunity due to their size and diversified portfolios. The lack of integration with social graphs in Zoom also gives it an advantage as a utility-focused platform. However, large tech companies are now playing catch-up and intensely competing with Zoom, leading to a sense of urgency and potential superior offerings in the future. It's a classic example of big companies missing opportunities to grow great standalone products that become essential businesses. If only Microsoft had opened up its FaceTime protocol or carriers had collaborated on a rich communication standard earlier, the landscape of communication technology might look different today.

• Tech companies report user growth but declining ad revenues during earnings week: Despite increased user engagement on digital platforms, ad revenues are declining due to economic impact of the pandemic, leading to heightened competition for ad dollars

  While digital platforms like Zoom and Discord offer various communication modes within their ecosystems, traditional methods like emails and text messages for sharing meeting links still persist. During earnings week, tech companies like Twitter and Facebook reported significant user growth but declining advertising revenues. Twitter saw its largest year-over-year growth in daily active users, reaching 166 million, but experienced a 27% drop in year-over-year ad revenue due to the economic impact of the pandemic. These trends suggest a shift in consumer behavior towards digital communication and increased competition for advertising dollars.

• Businesses behind social media platforms face challenges with decreased ad revenues: Big brands pull back on ad spending due to economic uncertainties, while Google Cloud sees a revenue jump as backbone for other businesses

  Despite a surge in usage across popular social media platforms like Twitter, Facebook, and YouTube, the businesses behind these platforms are facing challenges due to decreased advertising revenues. Big brands, such as Ford and GM, are pulling back on advertising spending as they grapple with economic uncertainties caused by the COVID-19 pandemic. Although services like Facebook Messenger, WhatsApp, and Instagram have seen record engagement, it's unclear if these spikes will last and they're not easy to monetize. Google and Facebook, in particular, are trying to keep their services running while dealing with increased usage and rising costs. Google Cloud, which is not an ad-supported business, has seen a 55% jump in revenue, serving as the backbone for other businesses experiencing surging usage. Companies like Snap, which have long been seen as struggling to compete against giants like YouTube and Instagram, are now seeing success with ad-based businesses as advertisers shift their spending to platforms where they can reach engaged audiences.

• Shaky ad market leading to user-pay models: Companies may shift towards user-pay models due to ad market uncertainty, but monetizing non-advertising features like messaging and video calling could be challenging. Consumers demand transparency and value to maintain loyalty.

  While tech giants like Facebook and Google are seeing increased usage and revenue from their ad-supported services, the long-term sustainability of this business model is uncertain. The shift towards user-pay models, such as Marco Polo's premium tier, may become more prevalent as the ad market remains shaky. However, monetizing non-advertising features like messaging and video calling could also be a challenge for companies. Consumers are increasingly canceling subscriptions and seeking clarity on pricing, making it essential for businesses to provide transparency and value to maintain customer loyalty. The most valuable parts of these platforms, like messaging and communication, are currently the least monetized, but finding alternative revenue streams will be crucial for their continued success.

• Outdated telecom systems and housing affordability challenges: Consumers face difficulties cancelling subscriptions due to outdated apps and confusing messages, while the housing crisis hinders young adults' independence. New technology, like DisplayPort Alt Mode 2.0, aims to address limitations in current systems.

  The experience of interacting with Verizon's subscription management system was described as outdated and broken. The speaker encountered numerous issues trying to cancel his Apple Watch cellular subscription, including a non-functioning app and a confusing monthly text message about opting in and out of paperless billing. This experience highlights the challenges some consumers face when dealing with large telecommunications companies and their complex systems. Furthermore, the conversation touched upon the housing affordability crisis in the United States and the impact it has on young adults' ability to move out and live independently. The segment also discussed the upcoming DisplayPort Alt Mode 2.0 standard, which aims to address the limitations of current ports in handling high-speed data and high refresh rate displays. In summary, the conversation covered the frustrations of dealing with outdated systems in telecommunications and housing, as well as the advancements in technology aimed at improving these experiences.

• New CEOs in Mobile Industry: T-Mobile's Mike Siever, AT&T's Randall Stevenson, and Verizon's Hans Vesberg are the new faces leading their respective companies through significant changes, including integrations, 5G network expansions, and maintaining their unique brand images.

  While HDMI cables have remained relatively unchanged and continue to function effectively, USB cables face ongoing issues and could benefit from a more controlled specification. Meanwhile, the mobile industry is experiencing significant leadership changes, with new CEOs at T-Mobile, AT&T, and Verizon. T-Mobile's Mike Siever, a former marketing director for Windows Vista, is tasked with managing the integration of Sprint and building a 5G network while maintaining the company's "uncarrier" image. AT&T's Randall Stevenson, known for his strong company values, is stepping down and handing over the reins to John Stankey. Verizon's Hans Vesberg, a newcomer to the CEO role, is focusing on Verizon's 5G network expansion. These changes make for an intriguing landscape in the mobile industry, with these three executives holding significant influence over their respective companies.

• AT&T's New CEO Appointment: Elliott Capital Management's Role: Activist investor Elliott Capital Management played a key role in AT&T's leadership change, pushing for new leadership and strategic changes, and eventually striking a deal for John Stankey's appointment as CEO. Stankey's expertise in managing telco complexities and media business proved crucial during his tenure.

  During a corporate shakeup at AT&T, an activist investor group, Elliot Capital Management, pushed for new leadership and strategic changes. AT&T's previous CEO, Randall Stevenson, brought Elliott in for their expertise and eventually struck a deal, resulting in the appointment of John Stankey as the new CEO. Stankey, a long-time telco executive, was given the task of managing the complexities of AT&T's various businesses, including its 5G network expansion and the troubled DirectTV division. Additionally, Stankey oversaw the transition of WarnerMedia into AT&T and the launch of HBO Max. Despite initial opposition from Elliott, Stankey's experience and understanding of the media business proved crucial in navigating these challenges. The deal also included Elliott gaining board seats and a commitment to succession planning.

• HBO Max expands reach and Verizon deals with media assets: HBO Max allows existing HBO Now customers access, Verizon faces challenges with media assets and 5G network, both companies navigate complex business decisions and competition

  The media landscape is undergoing significant changes with companies like HBO Max and Verizon dealing with complex integrations and business decisions. HBO Max is expanding its reach by allowing existing HBO Now customers to access HBO Max, but the details are unclear. Verizon, on the other hand, is trying to figure out what to do with its media assets, including Yahoo and the Huffington Post, while building a 5G network and competing with other telecom companies. The departure of key executives from media companies like CNN and the Huffington Post adds to the challenges. Overall, these companies face a range of problems from managing large-scale launches to navigating complex business decisions and competition.

• Telecom Industry at Inflection Point with 5G and New Players: Verizon faces pressure to grow beyond network infrastructure, while the industry undergoes major shifts with 5G, digital media, and potential mergers.

  The telecommunications industry is at an inflection point with the transition to 5G and the emergence of new players challenging the traditional market dominance of companies like Verizon. While Verizon has a strong network and doesn't face the same integration challenges as T-Mobile, investors are looking for growth and may be uninterested in a "boring" focus on network infrastructure. The industry is also experiencing changes in other areas, such as the movie industry's shift to digital releases during the pandemic. For example, NBC Universal made $100 million from the early release of Trolls World Tour on digital platforms, while theater chains are struggling to adapt. Overall, the telecom landscape is undergoing significant changes, and the three major players - T-Mobile, Verizon, and the potential "death star" option of a merger between AT&T and Dish Network - will need to navigate these shifts while managing their legacy businesses and dealing with regulatory changes.

• Movie industry shift to streaming platforms: Studios may abandon windowing deals as streaming services gain influence, allowing mid-range movies to thrive online.

  The movie industry is undergoing a significant shift as streaming platforms gain more power and influence. Traditional theater chains are warning studios about breaking windowing deals, but with the Oscars now allowing streaming movies to qualify, and the future of businesses lying in streaming services, studios may no longer see the need to adhere to these deals. Mid-range movies that struggle in theaters may find more success on streaming platforms. Additionally, tech reviews this week included the Apple iPhone 11 Pro with impressive camera quality but missing wireless charging, the Intel NUC 9 Extreme mini PC with a unique cartridge system, and the Google Pixel Buds with good sound but short battery life. Lastly, DJI released a new Mavic Air 2 with improved camera and longer flying time, but without Wi-Fi and with a larger, more solid remote control.

• Desktop PCs: Increasing in Power or Shrinking in Size?: Despite price and processing power increases, there's an expectation for smaller, yet powerful desktop PCs in the future.

  There's a conflicting trend in the tech industry regarding the size and performance of desktop computers. On one hand, the price and processing power of desktop PCs are increasing, offering high-end capabilities similar to laptops. On the other hand, there's a growing expectation that future desktop PCs will become smaller and more compact. The current Neck Nine desktop PC, with its empty PCI expansion slots and high price, raises questions about its place in this evolving landscape. Looking forward, we can anticipate the development of smaller, yet powerful desktop PCs within the next five years. Subscribe to The Verge's newsletters, Processor and The Interface, for updates on the latest tech trends and innovations. In the meantime, stay tuned for upcoming episodes on The Vergecast, featuring exciting interviews and new formats. Canva, a sponsor of this episode, offers an efficient solution for creating presentations, helping you save time and generate professional-looking slides.