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Can Apple Take the Metaverse Mainstream?

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Can Apple Take the Metaverse Mainstream?

It’s here (or it will be “early next year”): Apple unveiled its long-awaited entry into virtual reality, or what the tech giant calls “spatial computing,” in the form of the Apple Vision Pro, a $3,500 device that looks like exquisitely designed futuristic ski goggles.

The initial reviews were mixed and skeptics questioned whether even Apple could make virtual reality anything more than a niche technology. But boosters say that if any company can make it mainstream, it’s Apple with its ecosystem of two billion iPhone, iPad and Mac users.

“We believe Apple Vision Pro is a revolutionary product,” Tim Cook told developers and journalists on Monday. It certainly looks like an Apple product: Unlike other virtual reality headsets, an external display shows your eyes to others, and the device is controlled using hand gestures, eye movements and your voice. A dial allows you to adjust how immersed you want to be in the virtual world, which is beamed to your eyeballs via two tiny 4K screens.

Yet what Apple demonstrated on Monday were mostly immersive versions of apps like FaceTime and Safari, as well as 3-D photos and video, rather than a wholly VR experience. Here’s what early testers had to say:

  • “At the end of the demo, I took off the headset and felt two things: 1) Wow. Very cool. 2) Did I just do drugs?” wrote Joanna Stern of The Wall Street Journal.

  • The device’s eye-tracking “is the closest thing I’ve seen to magic,” said the tech reviewer Marques Brownlee.

  • “The most perfect headset demo reel of all time is still just a headset demo reel,” wrote Nilay Patel of The Verge.

These are tough times for virtual reality. Enthusiasm for virtual worlds, often called the metaverse, rose during the pandemic, but waned as lockdowns eased. Investors also appear to have moved onto shinier new technologies like artificial intelligence: Metaverse-related start-ups raised about $664 million in the first five months of 2023, down 77 percent year on year, according to PitchBook.

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But Apple has supercharged new product categories before. Remember that the market for portable digital music players was just 3.3 million units in 2000 before Apple released the iPod; four years later, it surged to 26.4 million.

And Apple is often content to play the long game: “They know this is an evolution that’s going to take some time,” Jeff Fieldhack of Counterpoint Research told The New York Times. (Then again, not all Apple products turn out to be hits.)

Others may profit from riding Apple’s coattails. Shares in the game developer Unity jumped 17 percent on Monday on the news, while those in Disney shot up after the media giant said its Disney+ service would be available on the Vision Pro.

Even Meta, which has invested — and lost — billions in trying to make the metaverse go mainstream, may benefit: Could its lower-cost Quest Pro, whose newest version will start at $500, end up becoming the Android to the Vision Pro’s iPhone?

Sequoia will break itself into three. The venture capital firm said on Tuesday that its China and India investment arms would become separate businesses, citing the complexities of running a “decentralized global investment business.” The move comes amid deep geopolitical tensions between the United States and China, though Sequoia executives denied that was a motivation.

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A crucial dam in southern Ukraine is destroyed. The attack on the Kakhovka dam and power plant put scores of nearby residents, grain elevators and ports at risk and raised safety concerns about a nearby nuclear power plant. Ukraine and Russia traded blame for the attack; Russian forces control the area.

Elon Musk lets Robert Kennedy Jr. push misinformation on a Twitter broadcast. The social network’s owner on Monday hosted Kennedy, a vaccine skeptic seeking the Democratic presidential nomination, who pushed baseless claims such as the coronavirus being a bioweapon. His comments came as Twitter executives worried that controversial content would continue to hurt the company’s advertising business.

The Hollywood actors union votes to authorize a strike. Roughly 98 percent of SAG-AFTRA members who voted have authorized a work stoppage, days ahead of negotiations with film and television studios. The move comes amid the writers’ strike, now in its sixth week, and follows the Directors Guild of America agreeing to a tentative deal.

The S.E.C. accused Binance, the world’s largest cryptocurrency exchange, of mishandling customer funds and misleading investors and regulators about its operations. The case announced on Monday could shake up the sector on the eve of a congressional hearing into new regulations for the industry.

Binance is accused of mixing billions of dollars of customer funds with a separate company owned by its C.E.O., Changpeng Zhao. The S.E.C. also asserts that Binance sold unregistered securities, and its complaint quotes an executive admitting to a colleague that the company was operating an “unlicensed security exchange in the USA bro.”

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The company denied the accusations, saying it had been trying to negotiate a settlement and that the case was “misguided.” But the S.E.C.’s latest actions add to a growing list of accusations against Binance after the Commodity Futures Trading Commission sued it in March, saying the company illegally served U.S. customers.

The latest case has echoes of FTX’s demise. Binance helped expedite the collapse of its rival last fall after inspecting the company’s books ahead of a potential acquisition and warning that there were issues. Soon after, federal agencies began investigating FTX’s founder, Sam Bankman-Fried, and issued civil and criminal fraud charges against the one-time crypto industry wunderkind.

Now, Mr. Zhao, Bankman-Fried’s former mentor, is facing his own potential penalties — and industry insiders say the S.E.C. case may not be the last to hit Binance.

Crypto will be debated in Congress on Tuesday. Two House committees jointly released draft crypto legislation last week and are holding a hearing on Tuesday on the future of the sector. The Binance case is poorly timed for the industry’s champions, as they try to shift the narrative after the FTX scandal. Shares in Coinbase, a rival exchange, fell 10 percent after the case was announced.

The industry has been calling for clearer regulation and the new proposal addresses wonky issues, like when a digital asset transforms from a security to a commodity. “We think this is workable and long overdue,” Paul Grewal, Coinbase’s chief legal officer who will testify, told DealBook about the bill. But the latest accusations may dominate the discussion.

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Business leaders are closely tracking the battle between the Federal Trade Commission and Illumina, a gene sequencing company that acquired the cancer test maker Grail for $7 billion in 2021.

The case is viewed as a litmus test for vertical mergers, in which a company buys a business in a similar industry, and the fight became spicier on Monday when Illumina accused the F.T.C. of operating unconstitutionally.

The F.T.C. has ordered Illumina to divest Grail. But Illumina says the agency is applying a new standard to vertical mergers and exercising power that goes far beyond what Congress intended for unelected administrators. The Fifth Circuit Court of Appeals will hear the case and might be inclined to agree, based on its record in two cases last year.

  • The appeals court sided with payday lenders in a case challenging the constitutionality of the C.F.P.B.; the Supreme Court will review it next term.

  • The appeals court agreed with a hedge fund manager charged by the S.E.C. for violating securities laws who said the agency’s enforcement power was unconstitutional; the government is petitioning for review.

A decision could come quickly. The Fifth Circuit recently granted Illumina’s request for expedited review, and a hearing is set for August. The loser will probably appeal. But the Supreme Court has made some decisions that suggest it is not so friendly to regulators, either.

  • In April, the justices ruled unanimously to streamline federal court challenges to the constitutionality of agencies, making it easier to sue administrators.

  • The high court last year found that the E.P.A. exceeded its congressional authority with a rule on emissions.

Some lawyers think Illumina will eventually end up before the Supreme Court, which could rule in the company’s favor. But everything depends on timing: Illumina is also facing opposition in Europe and the company has said that it would sell Grail if it loses on either continent. A decision on Illumina’s appeal of a European Commission move to block the deal could come late this year, which may be why the F.T.C. has been asking the Fifth Circuit to slow down.

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Park Hotels & Resorts, operator of two of the most prominent hotels in San Francisco, is handing in the keys on the properties — and, in essence, giving up on a city that has fallen on hard times.

Park Hotel stopped making payments on a $725 million loan tied to the Hilton Union Square and Parc 55 San Francisco, the real estate investment trust said on Monday. The hotels, a few blocks from the once-bustling Moscone Center conference hall, have a combined total of nearly 3,000 rooms.

A slowing economy and a remote-work thunderclap have emptied offices across the country, with some warning of a ticking time bomb in the commercial real estate market. Slammed by a wave of tech layoffs and a steep slowdown in Moscone’s conference calendar, downtown San Francisco has been hit hard.

“Now more than ever, we believe San Francisco’s path to recovery remains clouded and elongated by major challenges,” said the Park C.E.O., Thomas Baltimore, Jr.

Could others follow suit? San Francisco is highly dependent on business travel, which has yet to return to pre-pandemic levels. While JPMorgan brought back its annual health care conference this year, other events have moved out, including VMWare’s tech conference.

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Not everyone is giving up. “We’re not writing San Francisco off,” James Risoleo, the C.E.O. of the rival Host Hotels & Resorts, parent company of the San Francisco Marquis hotel, told analysts in May. “It is the center of tech and it’s going to be the center of artificial intelligence as the world returns.”

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TV series based on Shohei Ohtani interpreter gambling scandal in the works at Lionsgate

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TV series based on Shohei Ohtani interpreter gambling scandal in the works at Lionsgate

Lionsgate Television is developing a scripted series based on the real-life gambling scandal involving Dodgers superstar Shohei Ohtani’s interpreter.

The show will follow Ohtani’s story — his meteoric rise in the MLB, his 10-year, $700-million contract with the Dodgers and then the devastating news that his interpreter, Ippei Mizuhara, had allegedly stolen $17 million from him to pay off gambling debts.

The Dodgers fired Mizuhara after learning of the allegations. Mizuhara, 39, has agreed to plead guilty to one count each of bank fraud and signing a false tax return. He faces up to 33 years in prison for the two crimes.

The series will be produced by Tony Award winner Scott Delman, known for “The Book of Mormon” and “Raisin in the Sun,” and sports journalist Albert Chen, Santa Monica-based Lionsgate said Thursday.

“This is Major League Baseball’s biggest sports gambling scandal since Pete Rose — and at its center is its biggest star, one that MLB has hitched its wagon on,” Chen said in a statement. “We’ll get to the heart of the story — a story of trust, betrayal and the trappings of wealth and fame.”

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The Ohtani series is just the latest in a long list of TV shows and movies that have been ripped from the headlines. The 2018 rescue of a soccer team from a cave in Thailand was the subject of two movies, a Netflix series and documentary and a National Geographic documentary. Last year’s “Dumb Money” was based on the real-life Gamestop stock saga, one of several Hollywood projects that were launched to capitalize on the meme stock sensation.

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L.A. County to offer discounted home internet to lower-income residents in some neighborhoods

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L.A. County to offer discounted home internet to lower-income residents in some neighborhoods

With the federal government poised to slash subsidies for internet service, L.A. County has started work on a wireless broadband network that will deliver high-speed connections for as little as $25 a month.

The county announced this week that it had signed a contract with WeLink of Lehi, Utah, to build the network and offer the service in East Los Angeles, Boyle Heights and South Los Angeles. Qualified households will be offered a $40-per-month discount on WeLink’s rates, meaning they could obtain the basic 500-megabits-per-second service for $25 a month.

The contract brings a new internet provider to neighborhoods now served mainly by Spectrum and AT&T, which also offer discounted service for lower-income residents — though at much lower speeds. But it will take months for WeLink to build its network, which will rely on a series of rooftop antennas connected to the internet through existing fiber-optic lines.

The looming loss of federal subsidies is a much more immediate problem. Unless Congress renews its funding, the Affordable Connectivity Program will be lapsing this month, terminating a $30-per-month benefit that has allowed 23 million lower-income households to obtain broadband service at little or no cost.

L.A. County has more of these subsidy recipients than any other county in the country — 983,000 households, said Eric Sasaki, manager of major programs for the county’s Internal Services Department. The county’s enrollment, he said, is higher than that in 45 states.

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The county’s deal with WeLink has similar roots to the Affordable Connectivity Program, which grew out of the emergency broadband subsidy program the federal government launched at the height of the COVID-19 pandemic.

In 2021, Sasaki said, the L.A. County Board of Supervisors decided to explore ways to bring high-speed internet quickly to lower-income neighborhoods where more than 20% of the homes weren’t connected. Concerned about kids struggling to attend online classes, the county looked at putting wireless internet hubs at libraries, parks and even restaurant chains before deciding to conduct demonstration projects in four regions: East L.A./Boyle Heights, South L.A., the northern part of the San Fernando Valley, and five cities in the southeastern part of the county.

The county has received $50 million in federal funds for the projects, but about $45 million will go to the East L.A. and South L.A. rollouts, Sasaki said.

“We are also looking for additional funding sources to help execute additional projects,” he said.

The demonstration projects “are kind of a proof of what is possible,” Sasaki said. “The idea was that these would be sustainable and long term.”

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WeLink’s service area in East L.A. and South L.A. covers more than 275,000 households and small businesses within 68 square miles.

All or part of the following communities are to be served:

East Los Angeles, Boyle Heights, Lincoln Heights, Montecito Heights, El Sereno, Adams-Normandie, University Park, Historic South-Central, Exposition Park, Vermont Square, South Park, Central-Alameda, Chesterfield Square, Harvard Park, Vermont-Slauson, Florence, Florence-Firestone, Manchester Square, Vermont Knolls, Gramercy Park, Westmont, Vermont Vista, Broadway-Manchester, Green Meadows, Watts, Athens, Willowbrook, West Rancho Dominguez and Walnut Park.

The company plans four tiers of service, with equal speeds for uploads and downloads: $65 a month for 500 Mbps, $75 for 1 gigabyte per second, $85 for 2 Gbps, and $99 for small-business connections. Installation and a router will be included, WeLink Chief Executive Luke Langford said.

Qualified homes will receive a $40-a-month discount on the residential tiers. The initial plan is to use the same eligibility requirement the federal government uses for the Affordable Connectivity Program: households earning up to 200% of the federal poverty level, which would be $30,120 for a single individual or $62,400 for a family of four. If the federal program is extended, qualified households would be able to receive the WeLink service at no cost.

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If the program is not extended, WeLink and the county will come up with an alternative metric, Langford said, adding that his company is comfortable offering the discounts under the current terms.

The contract calls for WeLink to provide discounted service to 50,000 households. Sasaki said the county would be thrilled if that many homes signed up for the $25 monthly service; if there is even more demand, he said, the county will look for ways to support it.

Surveys show that lower-income households are less likely to have a home internet connection not because the service isn’t available, but mainly because it’s not affordable. Other problems include not having a computer or knowing how to use one, as well as a lack of awareness about programs that can help users overcome these hurdles.

Sasaki said the county plans to address those issues with programs to supply free laptops and technical assistance from “digital navigators” in the communities being served.

It wasn’t an explicit goal of the community broadband program to spark more competition among internet providers, but that’s happening with the WeLink deployment. And if Spectrum and AT&T lower their prices in response, Sasaki and Langford said, that’s another way the project will benefit targeted communities.

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WeLink uses unlicensed spectrum in the 60-gigahertz band of frequencies, which means it doesn’t need to obtain permits for the airwaves or tear up streets for new fiber-optic lines. It will also design the network in a way that reduces the number of antennas required to carry data.

Those steps should speed construction of the network, Langford said. But WeLink still has to strike deals to mount its antennas on rooftops, lights and street poles, he said, as well as to use the fiber-optic lines that will connect its network to the internet.

Langford said he expects a “relatively modest” number of customers to be offered service by the end of the year, with the bulk of the deployment going live in 2025 and beyond. People interested in the service can sign up for updates at the WeLink website.

The very high frequencies used by WeLink can transmit an enormous amount of data, but unlike the lower frequencies used by radio stations and cellphones, they don’t travel well through walls. Langford said WeLink installers will either use new cables or a building’s existing wiring to connect the rooftop antennas to routers inside customers’ homes and businesses.

Founded in 2018, WeLink has built networks serving parts of Las Vegas, Phoenix, Dallas, Washington, D.C., and Los Angeles, Langford said.

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LAist staffers offered buyouts ahead of possible layoffs at public radio station

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LAist staffers offered buyouts ahead of possible layoffs at public radio station

Journalists at LAist have been offered buyouts ahead of a potential round of layoffs at the local public radio station that broadcasts under the call sign KPCC-FM (89.3).

Kristen Muller, chief content officer at LAist, informed donors by email on Thursday that the company is pursuing a “voluntary buyout program for current employees” in an effort to prevent cuts. All full- and part-time staffers who work at least 24 hours per week are eligible for buyouts.

LAist reporter Caitlin Hernández posted an excerpt from the memo online, along with a link for listeners who wish to donate to the nonprofit parent network Southern California Public Radio.

“Our hope is that these buyouts will be enough to shrink the gap and avoid layoffs, but that remains unclear,” Muller wrote. “In a commitment to transparency, we will continue to share updates with you as the situation evolves.”

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In a statement provided Thursday to The Times, Muller said LAist is “facing a significant budget shortfall” ranging from $4 million to $5 million over the next two years. She cited a decline in advertising, dried-up investment reserves, digital monetization issues “and overall cost increases that have not kept pace with revenue.”

“We have reduced all non-salary expenses as much as possible,” the statement read.

“This does not mean we are retreating from our cross-platform ambitions, or our desire to be a daily digital habit for Southern Californians seeking trustworthy news and information,” it continued. “In fact, our work has never been more vital, and we are committed to its growth.”

LAist is not the only SoCal media organization that has been struggling.

In March, the Long Beach Post laid off nine staffers after newsroom employees moved to unionize and went on strike to protest the impending cuts. Former and striking Long Beach Post journalists have since formed their own media outlet, the Long Beach Watchdog.

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According to the Watchdog, the National Labor Relations Board is investigating allegations that the Long Beach Post and the Long Beach Business Journal retaliated against workers for moving to unionize under the Media Guild of the West. The Times has asked a Post representative for comment.

The Los Angeles Times also has undergone layoffs in recent months. The Times cut more than 100 staffers — roughly 20% of the newsroom — in March, citing heavy financial losses.

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