Things haven't been looking so great for HTC. While some phones have been fantastic, like the HTC One, others haven't seen such great results, like the
Facebook-heavy HTC First. Sales haven't been the best and the company has faced some tough times. With less than three years under his belt, Chief Operating Officer Matthew Costello has resigned from his position with HTC after another dismal sales quarter and shares being down over 75 percent from two years ago.
According to HTC, Fred Liu, the president of engineering and operations, will be handling the COO position until further notice. For Costello, oddly enough he will not be departing the company entirely. Instead, the former COO will move to Europe and will become an executive adviser to the company. Odds are that this will be the case until Liu is comfortable in his new position, and then Costello will be let go. All of this is happening after HTC posted a net income loss of almost
100 percent in the last quarter. Plus, Costello isn't the only person who has left the company. Before him, the finance, design and marketing chiefs have all left the company in the past two years as well.
New Chief Marketing Officer Ben Ho said that things have to turn around for HTC. He mentioned in a statement that the company is going to be more bold and prominent in its advertising campaigns. Of course, the HTC One is probably going to be at the helm of the marketing campaign moving forward. However, Ho didn't speak on any budget for any campaigns moving forward.
We're going to be bolder with marketing in the second half. We're not going to hide our brand anymore.
HTC's CEO, Peter Chou, spoke on driving sales back to the brand as a whole, and said that their highlight phone, the HTC One, will have what it takes to do that.
Response for our flagship device has been strong and demand has exceeded our expectations. We are confident that the business steps we have taken and continue to take are the right ones to lead to a strong resurgence of the HTC brand.
Could the new wave of execs running the company be what HTC needs to make a profit next quarter? Seeing as though this quarter marked the lowest recorded profit in company history, it is obvious things need to change, and fast. I would love to see HTC get into more Windows Phone devices, as people are starting to become frustrated and confused by seeing so many different HTC-branded devices out there all running different iterations of Android. The user experience from one phone to the next, even with the same version of Android, can be completely different depending on the carrier and I think customers are getting tired of re-adjusting to the same stifled product. What do you think? Comment below.
Media streaming is a big business: Netflix, Hulu, Amazon and even Aereo have built an entire, massive industry around the idea. As these companies see success, other, large companies will try to get into the game. Verizon recently backed RedBox's entry into the market, but they are not alone. Intel is in the process of joining the market with a set-top box, but not in the same way that Boxee or Roku have; instead Intel will provide the hardware and service together.
As part of this move, Intel is working to secure streaming rights to content from companies like Disney, News Corp and Viacom. Because the service has not launched and content providers are concerned about the possible success of yet another streaming service on a dedicated piece of hardware, several companies are reportedly charging Intel up to a 75% premium per subscriber.
Traditionally content providers charge streaming services a set fee per subscriber per month. Disney is, of course, the highest fee at $5.15 per subscriber last year. With premiums up to 75% over market value, that would be over $9 per subscriber per month just for Disney's content. How would it be possible for Intel to make money and stay in this business?
Obviously they will need to prove their value to get better prices, but until then they will probably have to eat the cost. Lucky for Intel they have a lot of cash. Hopefully for Intel this service will not go the way Google TV has, with no one seeming to care.