Insyte Weekly: Apple TV+ rumoured budget cuts, Amazon and NVIDIA's chip war, AI adoption in Grocery Retail and More,

This was an interesting week in the business world. From the continued visa-free tourism trend to Apple TV+ navigating the competitive world of streaming, read our highlights of some of this week’s top stories.

Media & Entertainment

As reported by Ali Rees, Netflix plans to expand its gaming portfolio with over 80 games in development and aims to release a new game each month in its interactive fiction hub, Netflix Stories. CEO Gregory K. Peters and Co-CEO Theodore A. Sarandos expressed enthusiasm for gaming during their Q2 earnings call, highlighting its current small role within Netflix's overall business but noting the growth potential, especially in interactive narrative games tied to popular shows. Sarandos emphasized the opportunity to enhance fan engagement by integrating gaming with existing and new content, allowing for continuous interaction between seasons and the introduction of new elements. In addition to self-developed games, Netflix is collaborating with other companies to bring third-party games like "Tales of the Shire" and indie games such as "Arranger" and "The Case of the Golden Idol" to its platform.

Alex Castro cited how Apple's senior vice president of services, Eddy Cue, is urging closer oversight of project budgets by studio chiefs Zack Van Amburg and Jamie Erlicht to make Apple TV Plus more sustainable amid production losses in the streaming industry. Apple, known for its hefty investments in high-profile projects, is facing challenges as its viewership significantly lags behind Netflix, with Apple TV Plus capturing only 0.2% of US TV views compared to Netflix's 8%. Consequently, Apple is now more likely to cancel original series, license content from competitors, and delay productions to stay within budget. Despite these challenges, Apple has not laid off staff as aggressively as its rivals, thanks to its substantial revenue from iPhone and tech hardware sales.

Edtech

A recent article in Forbes discussed how the landscape of STEM (Science, Technology, Engineering, and Mathematics) careers is rapidly evolving and how EdTech plays a critical role by bridging the gap between theoretical knowledge and practical application through tools like interactive simulations and virtual labs. These technologies promote essential skills such as critical thinking, problem-solving, and adaptability while providing personalized learning experiences that cater to diverse student needs. EdTech also enhances accessibility and inclusivity, reaching students in remote or underserved areas. Despite integration challenges, the continued investment in EdTech is crucial for equipping students with the necessary skills to thrive in dynamic STEM fields.

In an effort to provide better feedback to teachers, Amazon announced its partnership with an edtech startup called Sibme. Dave Wakefield, a former teacher in Houston, founded the EdTech company Sibme in 2013 to improve the feedback process for educators. Traditionally, gaining feedback on teaching required cumbersome methods like classroom visits or video uploads, leading to non-actionable insights. By leveraging Amazon Web Services (AWS) and artificial intelligence (AI), Sibme provides teachers with quicker and more reliable feedback on classroom behaviours like teacher talking time, student engagement, and sentiment. AWS's collaboration was pivotal in developing accurate transcription tools. Sibme's platform allows educators to track and demonstrate progress with quantitative data, enhancing both self-reflection and formal coaching. The company plans to expand its AI-assisted features for broader educational contexts, reinforcing its impact on improving teaching effectiveness and school performance.

Technology

Artificial intelligence (AI) is gradually becoming part of the grocery shopping experience, though adoption remains limited. As cited by Timothy Inklebarger, a report from Kroger-owned 84.51°, reveals that only 17% of consumers are knowingly using AI for grocery shopping, with an additional 10% unsure if they are using it. The majority, 74%, are not using AI at all. Among those who do use AI, 93% use it before shopping, 82% during shopping, and 57% after shopping. These respondents primarily use AI to find deals (71%), compare prices (58%), build shopping lists (44%), and plan meals (42%). Many appreciate AI for its efficiency and ability to provide details and prices, as well as for offering coupons, alerts, and personalized product recommendations via store apps.

According to Reuters, Amazon is advancing its efforts in artificial intelligence (AI) and cloud computing by developing its own AI chips to reduce reliance on Nvidia's processors. At a new chip lab in Austin, Texas, Amazon is testing its latest server design equipped with these homegrown chips, aiming to offer more cost-effective solutions for complex computations and data processing. This move is part of Amazon's broader strategy to lower expenses associated with Nvidia’s chips, which are essential for its Amazon Web Services (AWS) cloud business.

Tourism

According to TTW, Benin and Ivory Coast are the latest African countries to extend their visa-free tourism policies to more countries. Benin allows visa-free travel for citizens of several African (such as Burkina Faso, Tunisia, South Africa, Rwanda, and Senegal), Asian (such as Malaysia and Singapore), and Oceanian (such as Samoa and Niue) countries. Cote D’Ivoire allows 23 African countries such as Mali, Nigeria and Morroco to visit without visas.

Retail

A recent Bizcommunity article highlighted how South Africans have shown resilience in facing challenges, with grocery stokvels emerging as a solution to rising food prices and strained household budgets. These community-based financial groups make bulk purchases at wholesale outlets, easing financial pressure on members. The success of grocery stokvels lies in careful planning, clear financial goals, a cooperative decision-making structure, accurate record-keeping, and strategic bulk purchasing. This approach fosters a sense of community and mutual support, embodying the spirit of Ubuntu. Effective communication and consistent contributions from members are crucial for maintaining financial stability and ensuring everyone benefits from the savings and resources provided by the stokvel.

Businesstech shared some interesting insights from Discovery Bank’s SpendTrend Report. Johannesburg, South Africa's economic centre, boasts the nation's highest spenders, with residents spending 47% more than the national average while Capetonians spent 38% more and Durbanites 13% more than the average South African. Johannesburg led in dining out expenditures, while Cape Town topped grocery spending. The report also highlighted the growing preference for digital wallets, with significant increases in mobile payment adoption in Durban, Cape Town, and Johannesburg. The shift towards digital payments aligns with global trends and offers enhanced convenience and security. Despite the economic challenges of post-pandemic recovery, rising inflation, and high interest rates, these spending insights underscore South Africans' economic resilience and adaptability.

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