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Sonos tries to get its groove back after upsetting loyal customers

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Sonos tries to get its groove back after upsetting loyal customers

Heath Evans really needed his Sonos speakers to work.

He and his wife counted on one of the three wireless devices he owned to play lullabies to help put their baby daughter to sleep.

So, in May, when Sonos released a new controller app that was so riddled with problems he couldn’t get the speakers to work, Evans was angry.

“We just need reliable music that plays lullabies while we’ve got a screaming baby trying to go to sleep,” said Evans, a 40-year-old entrepreneur in Australia who had received the speakers from his wife last year for his birthday.

Fed up with the time Sonos has taken to fully fix the app, the family has given up on trying to use the devices, which cost about $1,300. They’ve turned instead to a cheap speaker to stream music for their daughter’s bedtime.

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Evans is among a legion of unhappy customers who are upset with Santa Barbara-based Sonos. Today, the company is still trying to mitigate the fallout from the app debacle and salvage its reputation as a powerhouse in the audio industry offering an array of portable, high-quality wireless speakers. The hit to Sonos’ brand has swung the door open for rivals such as Amazon, Bose, Apple and other tech giants that make smart speakers to capture more of the business’ customers.

“Sonos knows it is on precarious ground because while it has built up customer goodwill, it plays in a highly competitive space,” said Dipanjan Chatterjee, vice president and principal analyst at research firm Forrester in an email.

Over its more than 20 years, the publicly traded company has weathered tough times before, including the 2008 financial crisis. But its latest misstep is a multimillion-dollar blunder that has forced it to delay the launch of new products and lower sales projections for the pivotal final months of the year when they otherwise would be looking to capitalize on a holiday sales boost.

Sonos said it’s spending $20 million to $30 million to fix the app and provide more customer support — an emergency investment it hopes will win back the trust of customers and steady its financial footing. In the last six months, the company’s stock, which ended trading Thursday at $11.58, has fallen 39%. In the quarter ending June 29, it reported $397 million in revenue, a 6% increase over the same period last year, and $3.7 million in net income.

This week, the company outlined a plan to make sure it doesn’t have similar failures in the future, including improvements to how it tests products before they’re released, the appointment of a “quality ombudsperson,” creation of a customer advisory board, and extending its warranty for certain items, such as its home theater and plug-in speaker products. Executives agreed to forgo their annual bonuses for 2025 unless their turnaround plan succeeds.

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“There are many wonderful brands that have made missteps, have gone out and apologized to fix things and won back the trust of their customers,” said Eddie Lazarus, Sonos’ chief strategy officer. “We’re going to be the next one in that line.”

Sonos was founded in 2002 by a group of entrepreneurs who set out to build something that is commonplace today but pioneering at the time: a wireless audio system that would enable people to play music over the internet anywhere in their home. They were working years before the start of popular streaming services such as Spotify and Pandora, as well as the launch of the iPhone.

In January 2005, the company released the ZP100, a device with a remote control that allowed people to stream music through their computers. The product garnered positive reviews including from Walt Mossberg, a tech columnist at the Wall Street Journal, who called the Sonos music streaming system “easily the best music-streaming product I have seen and tested.”

As in many startups, Sonos executives were worried about competitors . The first song played publicly on the ZP100 was the Beastie Boys’ “No Sleep Till Brooklyn,” a tune engineers could relate to as they hustled to improve the quality of the device before its release.

Appearing on the podcast “How I Built This with Guy Raz” this year, one of the founders, John MacFarlane, recalled the pressure he and others felt to unveil their first product in time for the holiday season — a goal they ultimately missed. Releasing the ZP100 before it was ready would have “killed the company,” he said.

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“You had to have a great positive first experience if you’re going to build the brand on word of mouth,” MacFarlane said.

The challenge of striking a balance between moving fast and having a good product is still a challenge that Sonos and other tech companies have grappled with throughout their history. Apple faced backlash from its customers in 2012 when it released a Maps app that contained inaccurate driving directions, Chatterjee said. But Sonos is in a “trickier” spot because the app is part of what makes the company’s audio system function seamlessly for the 15 million households that use its products globally.

“Without that seamlessness, there is no ease of use, and without the ease of use, the company cannot command its premium price with consumers or its premium position in the market,” he said.

Sonos Chief Executive Patrick Spence has acknowledged that the company has let down its customers. He told investors in August after Sonos released its quarterly earnings that the company had to rebuild the app to address “performance and reliability issues” and position the company for growth as the company expands “into new categories and move ambitiously outside of the home.” Sonos released its first pair of headphones in June.

For some Sonos customers like Evans, Sonos’ response has been “tone deaf,” underscoring the trust the company still needs to win back.

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“Why on earth would I care about a quality ombudsman? I’m a guy sitting in Melbourne nursing a baby in Australia with a speaker that doesn’t work,” he said.

Despite looking at the possibility of bringing back the previous version of the Sonos app, Lazarus said the company ruled it out because there were a lot of “technical concerns.” While the company has said it’s reintroduced many of the features from the old version of the app that were missing in the new one, he acknowledged the company still has work to do. He couldn’t say when the app will be completely fixed.

Other customers have found workarounds to still stream their music from their Sonos speakers even if the app doesn’t work.

Fearing issues with the rollout of the new app, 32-year-old product designer Matthew Mocniak said, he disabled his Sonos system from automatically updating the app but the solution worked only temporarily.

Mocniak, who lives in North Carolina and has spent more than $2,000 on Sonos speakers, said he’s able to stream music through Apple’s Airplay feature.

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As someone who works in the tech industry, Mocniak knows rebuilding software can be harder than it looks. “It’s very easy to promise certain features or certain deadlines,” he said. “It’s also easy to forget that there are people responsible for that stuff on the other side.”

Ben Brown, a 49-year-old creative director in the United Kingdom, said his Sonos app still says his speakers are not connected. Instead, he’s been using Amazon’s Alexa assistant to play music on the speakers.

Brown, who also purchased multiple Sonos speakers for his home, said he was so frustrated that he felt the urge to throw the Sonos Roam portable speaker in the sea while on vacation.

“I would never have done it, really, but that’s how angry it makes you,” he said. “It’s those moments where you just want to take a speaker outside, eat some dinner and listen to some music.”

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Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

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Commentary: A leading roboticist punctures the hype about self-driving cars, AI chatbots and humanoid robots

It may come to your attention that we are inundated with technological hype. Self-driving cars, human-like robots and AI chatbots all have been the subject of sometimes outlandishly exaggerated predictions and promises.

So we should be thankful for Rodney Brooks, an Australian-born technologist who has made it one of his missions in life to deflate the hyperbole about these and other supposedly world-changing technologies offered by promoters, marketers and true believers.

As I’ve written before, Brooks is nothing like a Luddite. Quite the contrary: He was a co-founder of IRobot, the maker of the Roomba robotic vacuum cleaner, though he stepped down as the company’s chief technology officer in 2008 and left its board in 2011. He’s a co-founder and chief technology officer of RobustAI, which makes robots for factories and warehouses, and former director of computer science and artificial intelligence labs at Massachusetts Institute of Technology.

Having ideas is easy. Turning them into reality is hard. Turning them into being deployed at scale is even harder.

— Rodney Brooks

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In 2018, Brooks published a post of dated predictions about the course of major technologies and promised to revisit them annually for 32 years, when he would be 95. He focused on technologies that were then — and still are — the cynosures of public discussion, including self-driving cars, human space travel, AI bots and humanoid robots.

“Having ideas is easy,” he wrote in that introductory post. “Turning them into reality is hard. Turning them into being deployed at scale is even harder.”

Brooks slotted his predictions into three pigeonholes: NIML, for “not in my lifetime,” NET, for “no earlier than” some specified date, and “by some [specified] date.”

On Jan. 1 he published his eighth annual predictions scorecard. He found that over the years “my predictions held up pretty well, though overall I was a little too optimistic.”

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For example in 2018 he predicted “a robot that can provide physical assistance to the elderly over multiple tasks [e.g., getting into and out of bed, washing, using the toilet, etc.]” wouldn’t appear earlier than 2028; as of New Year’s Day, he writes, “no general purpose solution is in sight.”

The first “permanent” human colony on Mars would come no earlier than 2036, he wrote then, which he now calls “way too optimistic.” He now envisions a human landing on Mars no earlier than 2040, and the settlement no earlier than 2050.

A robot that seems “as intelligent, as attentive, and as faithful, as a dog” — no earlier than 2048, he conjectured in 2018. “This is so much harder than most people imagine it to be,” he writes now. “Many think we are already there; I say we are not at all there.” His verdict on a robot that has “any real idea about its own existence, or the existence of humans in the way that a 6-year-old understands humans” — “Not in my lifetime.”

Brooks points out that one way high-tech promoters finesse their exaggerated promises is through subtle redefinition. That has been the case with “self-driving cars,” he writes. Originally the term referred to “any sort of car that could operate without a driver on board, and without a remote driver offering control inputs … where no person needed to drive, but simply communicated to the car where it should take them.”

Waymo, the largest purveyor of self-driven transport, says on its website that its robotaxis are “the embodiment of fully autonomous technology that is always in control from pickup to destination.” Passengers “can sit in the back seat, relax, and enjoy the ride with the Waymo Driver getting them to their destination safely.”

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Brooks challenges this claim. One hole in the fabric of full autonomy, he observes, became clear Dec. 20, when a power blackout blanketing San Francisco stranded much of Waymo’s robotaxi fleet on the streets. Waymos, which can read traffic lights, clogged intersections because traffic lights went dark.

The company later acknowledged its vehicles occasionally “require a confirmation check” from humans when they encounter blacked-out traffic signals or other confounding situations. The Dec. 20 blackout, Waymo said, “created a concentrated spike in these requests,” resulting in “a backlog that, in some cases, led to response delays contributing to congestion on already-overwhelmed streets.”

It’s also known that Waymo pays humans to physically deal with vehicles immobilized by — for example — a passenger’s failure to fully close a car door when exiting. They can be summoned via the third-party app Honk, which chiefly is used by tow truck operators to find stranded customers.

“Current generation Waymos need a lot of human help to operate as they do, from people in the remote operations center to intervene and provide human advice for when something goes wrong, to Honk gig workers scampering around the city,” Brooks observes.

Waymo told me its claim of “fully autonomous” operation is based on the fact that the onboard technology is always in control of its vehicles. In confusing situations the car will call on Waymo’s “fleet response” team of humans, asking them to choose which of several optional paths is the best one. “Control of the vehicle is always with the Waymo Driver” — that is, the onboard technology, spokesman Mark Lewis told me. “A human cannot tele-operate a Waymo vehicle.”

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As a pioneering robot designer, Brooks is particularly skeptical about the tech industry’s fascination with humanoid robots. He writes from experience: In 1998 he was building humanoid robots with his graduate students at MIT. Back then he asserted that people would be naturally comfortable with “robots with humanoid form that act like humans; the interface is hardwired in our brains,” and that “humans and robots can cooperate on tasks in close quarters in ways heretofore imaginable only in science fiction.”

Since then it has become clear that general-purpose robots that look and act like humans are chimerical. In fact in many contexts they’re dangerous. Among the unsolved problems in robot design is that no one has created a robot with “human-like dexterity,” he writes. Robotics companies promoting their designs haven’t shown that their proposed products have “multi-fingered dexterity where humans can and do grasp things that are unseen, and grasp and simultaneously manipulate multiple small objects with one hand.”

Two-legged robots have a tendency to fall over and “need human intervention to get back up,” like tortoises fallen on their backs. Because they’re heavy and unstable, they are “currently unsafe for humans to be close to when they are walking.”

(Brooks doesn’t mention this, but even in the 1960s the creators of “The Jetsons” understood that domestic robots wouldn’t rely on legs — their robot maid, Rosie, tooled around their household on wheels, a perception that came as second nature to animators 60 years ago but seems to have been forgotten by today’s engineers.)

As Brooks observes, “even children aged 3 or 4 can navigate around cluttered houses without damaging them. … By age 4 they can open doors with door handles and mechanisms they have never seen before, and safely close those doors behind them. They can do this when they enter a particular house for the first time. They can wander around and up and down and find their way.

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“But wait, you say, ‘I’ve seen them dance and somersault, and even bounce off walls.’ Yes, you have seen humanoid robot theater. “

Brooks’ experience with artificial intelligence gives him important insights into the shortcomings of today’s crop of large language models — that’s the technology underlying contemporary chatbots — what they can and can’t do, and why.

“The underlying mechanism for Large Language Models does not answer questions directly,” he writes. “Instead, it gives something that sounds like an answer to the question. That is very different from saying something that is accurate. What they have learned is not facts about the world but instead a probability distribution of what word is most likely to come next given the question and the words so far produced in response. Thus the results of using them, uncaged, is lots and lots of confabulations that sound like real things, whether they are or not.”

The solution is not to “train” LLM bots with more and more data, in the hope that eventually they will have databases large enough to make their fabrications unnecessary. Brooks thinks this is the wrong approach. The better option is to purpose-build LLMs to fulfill specific needs in specific fields. Bots specialized for software coding, for instance, or hardware design.

“We need guardrails around LLMs to make them useful, and that is where there will be lot of action over the next 10 years,” he writes. “They cannot be simply released into the wild as they come straight from training. … More training doesn’t make things better necessarily. Boxing things in does.”

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Brooks’ all-encompassing theme is that we tend to overestimate what new technologies can do and underestimate how long it takes for any new technology to scale up to usefulness. The hardest problems are almost always the last ones to be solved; people tend to think that new technologies will continue to develop at the speed that they did in their earliest stages.

That’s why the march to full self-driving cars has stalled. It’s one thing to equip cars with lane-change warnings or cruise control that can adjust to the presence of a slower car in front; the road to Level 5 autonomy as defined by the Society of Automotive Engineers — in which the vehicle can drive itself in all conditions without a human ever required to take the wheel — may be decades away at least. No Level 5 vehicles are in general use today.

Believing the claims of technology promoters that one or another nirvana is just around the corner is a mug’s game. “It always takes longer than you think,” Brooks wrote in his original prediction post. “It just does.”

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Versant launches, Comcast spins off E!, CNBC and MS NOW

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Versant launches, Comcast spins off E!, CNBC and MS NOW

Comcast has officially spun off its cable channels, including CNBC and MS NOW, into a separate company, Versant Media Group.

The transaction was completed late Friday. On Monday, Versant took a major tumble in its stock market debut — providing a key test of investors’ willingness to hold on to legacy cable channels.

The initial outlook wasn’t pretty, providing awkward moments for CNBC anchors reporting the story.

Versant fell 13% to $40.57 a share on its inaugural trading day. The stock opened Monday on Nasdaq at $45.17 per share.

Comcast opted to cast off the still-profitable cable channels, except for the perennially popular Bravo, as Wall Street has soured on the business, which has been contracting amid a consumer shift to streaming.

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Versant’s market performance will be closely watched as Warner Bros. Discovery attempts to separate its cable channels, including CNN, TBS and Food Network, from Warner Bros. studios and HBO later this year. Warner Chief Executive David Zaslav’s plan, which is scheduled to take place in the summer, is being contested by the Ellison family’s Paramount, which has launched a hostile bid for all of Warner Bros. Discovery.

Warner Bros. Discovery has agreed to sell itself to Netflix in an $82.7-billion deal.

The market’s distaste for cable channels has been playing out in recent years. Paramount found itself on the auction block two years ago, in part because of the weight of its struggling cable channels, including Nickelodeon, Comedy Central and MTV.

Management of the New York-based Versant, including longtime NBCUniversal sports and television executive Mark Lazarus, has been bullish on the company’s balance sheet and its prospects for growth. Versant also includes USA Network, Golf Channel, Oxygen, E!, Syfy, Fandango, Rotten Tomatoes, GolfNow, GolfPass and SportsEngine.

“As a standalone company, we enter the market with the scale, strategy and leadership to grow and evolve our business model,” Lazarus, who is Versant’s chief executive, said Monday in a statement.

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Through the spin-off, Comcast shareholders received one share of Versant Class A common stock or Versant Class B common stock for every 25 shares of Comcast Class A common stock or Comcast Class B common stock, respectively. The Versant shares were distributed after the close of Comcast trading Friday.

Comcast gained about 3% on Monday, trading around $28.50.

Comcast Chairman Brian Roberts holds 33% of Versant’s controlling shares.

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Ties between California and Venezuela go back more than a century with Chevron

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Ties between California and Venezuela go back more than a century with Chevron

As a stunned world processes the U.S. government’s sudden intervention in Venezuela — debating its legality, guessing who the ultimate winners and losers will be — a company founded in California with deep ties to the Golden State could be among the prime beneficiaries.

Venezuela has the largest proven oil reserves on the planet. Chevron, the international petroleum conglomerate with a massive refinery in El Segundo and headquartered, until recently, in San Ramon, is the only foreign oil company that has continued operating there through decades of revolution.

Other major oil companies, including ConocoPhillips and Exxon Mobil, pulled out of Venezuela in 2007 when then-President Hugo Chávez required them to surrender majority ownership of their operations to the country’s state-controlled oil company, PDVSA.

But Chevron remained, playing the “long game,” according to industry analysts, hoping to someday resume reaping big profits from the investments the company started making there almost a century ago.

Looks like that bet might finally pay off.

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In his news conference Saturday, after U.S. Special Forces snatched Venezuelan President Nicolás Maduro and his wife in Caracas and extradited them to face drug-trafficking charges in New York, President Trump said the U.S. would “run” Venezuela and open more of its massive oil reserves to American corporations.

“We’re going to have our very large U.S. oil companies, the biggest anywhere in the world, go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country,” Trump said during a news conference Saturday.

While oil industry analysts temper expectations by warning it could take years to start extracting significant profits given Venezuela’s long-neglected, dilapidated infrastructure, and everyday Venezuelans worry about the proceeds flowing out of the country and into the pockets of U.S. investors, there’s one group who could be forgiven for jumping with unreserved joy: Chevron insiders who championed the decision to remain in Venezuela all these years.

But the company’s official response to the stunning turn of events has been poker-faced.

“Chevron remains focused on the safety and well-being of our employees, as well as the integrity of our assets,” spokesman Bill Turenne emailed The Times on Sunday, the same statement the company sent to news outlets all weekend. “We continue to operate in full compliance with all relevant laws and regulations.”

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Turenne did not respond to questions about the possible financial rewards for the company stemming from this weekend’s U.S. military action.

Chevron, which is a direct descendant of a small oil company founded in Southern California in the 1870s, has grown into a $300-billion global corporation. It was headquartered in San Ramon, just outside of San Francisco, until executives announced in August 2024 that they were fleeing high-cost California for Houston.

Texas’ relatively low taxes and light regulation have been a beacon for many California companies, and most of Chevron’s competitors are based there.

Chevron began exploring in Venezuela in the early 1920s, according to the company’s website, and ramped up operations after discovering the massive Boscan oil field in the 1940s. Over the decades, it grew into Venezuela’s largest foreign investor.

The company held on over the decades as Venezuela’s government moved steadily to the left; it began to nationalize the oil industry by creating a state-owned petroleum company in 1976, and then demanded majority ownership of foreign oil assets in 2007, under then-President Hugo Chávez.

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Venezuela has the world’s largest proven crude oil reserves — meaning they’re economical to tap — about 303 billion barrels, according to the U.S. Energy Information Administration.

But even with those massive reserves, Venezuela has been producing less than 1% of the world’s crude oil supply. Production has steadily declined from the 3.5 million barrels per day pumped in 1999 to just over 1 million barrels per day now.

Currently, Chevron’s operations in Venezuela employ about 3,000 people and produce between 250,000 and 300,000 barrels of oil per day, according to published reports.

That’s less than 10% of the roughly 3 million barrels the company produces from holdings scattered across the globe, from the Gulf of Mexico to Kazakhstan and Australia.

But some analysts are optimistic that Venezuela could double or triple its current output relatively quickly — which could lead to a windfall for Chevron.

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The Associated Press contributed to this report.

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