AT&T will use Snapchat to launch scripted superhero series

AT&T is moving from "@SummerBreak" to Snapchat.

If that sentence makes little sense to you, you must not be from the generation AT&T will seek when it launches "SnapperHero," a scripted series made just for consumers who are increasingly turning to mobile-based media to gain access to information and entertainment.

"SnapperHero" will center on a superhero premise and will feature influential social-media personae in its cast. To create the program, AT&T has selected people with big followings on social-media outlets like YouTube, Snapchat and Vine, and will have them ask their audiences to make choices that will shape the way "SnapperHero" plays out - like character powers and origins, according to Billy Parks, producer of the series.

"A lot of it will be built on suggestions that are generated from the fans, and this is how we will build the audience for the show," said Parks, who supervised the production of @SummerBreak, a mobile series backed by AT&T and Chernin Group that played out on Twitter, Tumblr and other social-media outlets. "We start by saying, 'Hey, we are going to make this, so what are your suggestions?' And we will show them how it's being made along the way." Parks developed the series along with Kendall Ostrow, a UTA agent specializing in digital media.

Launch of the series is a vote of confidence by a major advertiser in Snapchat, a photo-messaging application that allows users to send text, photos and videos to a defined set of contacts. The content typically disappears after a set number of seconds, unless it is public, in which case it can be viewed for 24 hours. On Tuesday, Snapchat unveiled a new feature that could draw more advertisers. Called "Discover," the feature makes videos and stories available from media outlets including ESPN, Food Network, CNN, Comedy Central and Fusion.

And there's a twist that is unique to the outlet. Like most videos made available for public consumption on Snapchat, episodes of "SnapperHero" will only be available for 24 hours, and then they will be gone. "There is a little bit more of a sense of urgency to watch these episodes," said Sam Gorski, one of the directors of the series. Viewers will have no DVR or video-on-demand to turn to once a piece expires.

"It's like a slice of cake. You eat it, and it's really delicious, and then it's gone," said Shaun McBride, a popular Snapchat artist also known as "Shonduras" who will serve as a member of the cast and as creative director on the show.

The effort is an experiment, executives said. They do not know how large an audience will tune in the series. Even so, said Parks, producers working on @SummerBreak," which expanded to Snapchat in its second season, were intrigued by the response they saw taking place across the venue.

"What we are most excited about is that connection between creator and fan, and that phenomenon of call and response," said Liz Nixon, engagement director for AT&T. The telecom company will sponsor various ways of watching "SnapperHero" content, she said, and is likely to weave its products into the programming.

AT&T has spent millions over the years to try to lure consumers to trying new forms of communications. Until last year, AT&T played a large role in sponsoring voting on Fox's "American Idol," a sponsorship that is believed to be instrumental in the rise of text-messaging as a mode of communication.

AT&T said "@SummerBreak" over two seasons earned more than 60 million views - 15.3 million views in its first season and 49.08 million views in its second season, and 30 million social engagements and 1.6 billion impressions. Parks and Nixon said the company was still contemplating a third season of the series.

The stars of the new series will include: Anna Akana, a Japanese-American filmmaker known for the short films she creates on her YouTube channel; Freddie Wong, known for his work with the YouTube channel RocketJump; Harley Morenstein, host of the YouTube cooking show "Epic Meal Time"; and Jasmeet Singh, a comedian known as "JusReign" with a large social-media following.

Corridor Digital, a visual effects video team that has more than 3.2 million YouTube subscribers, will help direct the series. Gorski will co-direct with Niko Pueringer. Both are partners in the firm. The series is being produced by Fullscreen Inc. and Astronauts Wanted.

The cast will seek fan input about superhero identities, costumes, even plotlines. Producers expect to roll out 12 episodes over a four-week period starting in early 2015, with most of the content to be found largely on Snapchat. Parks estimated the effort would begin in earnest in January and February and would be concluded by the end of March.

Viewers should not expect to see a weighty series like NBC's "Heroes" or ABC's "Marvel's Agents of S.H.I.E.L.D.," said Parks. "The tone of the show is fundamentally comedic and light: What happens to these real-life influencers if powers are bestowed upon them," he said. "We are not trying to be a big-budget action show." Indeed, one of the cast members will find themselves the beneficiary of a very odd talent, said Pueringer: being made left-handed.

© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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H&M posts rise in quarterly profit, plans 400 new stores

STOCKHOLM — Swedish fashion retailer Hennes & Mauritz says its earnings rose by 12 percent in the fourth quarter, boosted by expansion in the United States and China.

Net profit for the quarter was 6.22 billion Swedish kronor ($754 million), up from 5.55 billion kronor a year earlier. Sales increased 17 percent to 42.6 billion kronor, Stockholm-headquartered H&M said Wednesday.

The results were slightly lower than some analysts had expected and H&M's share price dropped 1.7 percent in early trading in Stockholm to 333 kronor.

The fast-expanding company opened 379 stores last year, and plans to open about 400 more this year, mostly in the U.S. and China but also in new markets including India, South Africa, Peru, Taiwan and Macau.

H&M, known for its fashionable, low-price collections for mainstream consumers, now has more than 3,500 stores worldwide, and 132,000 employees.

It's also expanding its Internet sales. Last year H&M opened its online store to customers in France, Italy, Spain and China.

"These openings, combined with further improvements in our online store, have naturally contributed to the year's good sales development," CEO Karl-Johan Persson said in a statement.

Persson said the online store will be rolled out in nine more countries in 2015: Belgium, Bulgaria, the Czech Republic, Hungary, Poland, Portugal, Romania, Slovakia and Switzerland.

Full-year profit rose 17 percent to 19.98 billion kronor.

H&M's brands also include the higher-priced COS and urban fashion labels such as Monki, Weekday and Cheap Monday.

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Ford recalls cars, vans for door latch and seat belt trouble

DEARBORN, Mich. — Ford is recalling more than 221,000 cars and vans to fix problems with door latches and seat belts.

The biggest recall covers nearly 205,000 Ford Taurus, Lincoln MKS and Police Interceptor models in North America from the 2010 to 2013 model years. Ford says a door latch spring can become unseated, allowing the door to unlatch in a side-impact crash. The company says it knows of no injuries from the problem. Dealers will inspect the latches and replace door handles if needed.

The second recall covers just over 16,000 Transit Connect small vans in the U.S. from the 2014 model year. Seat belt fasteners can loosen, causing the belts to malfunction. Ford says the problem hasn't caused any crashes or injuries.

Dealers will replace and tighten the seat belt fasteners.

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Some Boston spots brave blizzard

The blizzard of 2015 didn't dampen Bostonians' appetites to venture out yesterday in search of restaurants that were open to serve their snowbound neighbors.

Barracuda Tavern in Downtown Crossing had put up six workers at the Nine Zero Hotel and Omni Parker House on Monday night so it could open at its normal 11 a.m. yesterday.

"We have two hotels right across the street from us, so it's a no-brainer," said chef/owner Luka Stipanov, who counted city workers as well as hotel guests as customers yesterday. "We're staying open until 2 a.m. and serving food until 1:30 a.m. — the full menu."

For Jacqueline Church, founder of private cooking class company Kitchen Confidence, the storm was a chance for a lunch date with her husband, an "essential" state employee who was working in Boston yesterday instead of his usual Danvers. The Leather District couple met at Gourmet Dumpling House in Chinatown.

"There was only a handful of people walking around out there," Church said. "Usually there's a line because it's so popular, but today, we walked right in and got a table."

Church saw only one other restaurant open.

"I was surprised," she said. "Chinatown usually is always the last to close."

Manager PJ Crowley shoveled a path through a 3-foot snowdrift to the door of Battery Park to open the Financial District bar and lounge for drinks -- with discounts equal to the amount of snow, which was 20 inches by mid-afternoon.

"It's a little tough, especially being in the area where we are," Crowley said. "But we had a lot of fun on Twitter yesterday and were committed to it, so we just wanted to follow through. Even after the (marathon) bombings we were open ... so we felt a snowstorm — being from New England -- wasn't really a big deal."

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After setting iPhone record, what does Apple do next?

SAN FRANCISCO — Apple CEO Tim Cook says consumer demand for new iPhones has been "staggering" and "hard to comprehend." That helped the company report record-smashing earnings for its latest quarter and primed its stock for a rally Wednesday.

But after selling a record 74.5 million iPhones in three months that ended in December, what can Apple do next?

Some analysts worry that Apple depends too much on the iPhone, which contributes two-thirds of its sizable revenue — leaving the company vulnerable if some other gadget comes along to replace the iPhone in popularity. Cook and Chief Financial Officer Luca Maestri, however, say they're optimistic about other products in Apple's portfolio. Here's some of what they talked about on Tuesday.

Apple Watch

Apple plans to start selling its highly anticipated smartwatch in April, Cook told analysts on a conference call after the company's earnings report Tuesday. He added that developers are working on new apps called "Glances" — apparently in reference to the way people will view those apps on their wrists.

Cook boasted he's already wearing and enjoying an early model. "I'm using it every day and love it and can't live without it," he said.

Still, some analysts say it's difficult to predict demand for the Apple Watch. "We continue to believe interest from consumers is tepid," said Piper Jaffray's Gene Munster in a recent note to investors.

Apple Pay

Apple introduced its digital payments service last fall, but Cook vowed Tuesday that "2015 will be the year of Apple Pay." He said 750 banks have signed up for the program, which now accounts for two out of every three dollars spent through so-called "contactless" payment systems, as opposed to credit cards that are swiped at the point of sale.

While Apple is believed to collect fees from banks when shoppers use Apple Pay, it doesn't specifically disclose revenue from the service. BGC Partners analyst Colin Gillis says he doesn't expect the program will make a "material" contribution to Apple's revenue in the near future.

Other devices

Apple said sales of Macintosh computers were up 9 percent in the last quarter. The company increased its share of the personal computer market at a time when overall PC sales were declining. Apple no longer reports separate numbers for its iPod music players.

But iPad sales fell 22 percent. Even so, Maestri said surveys show consumers love iPads for web-browsing and shopping, and he said new apps produced in partnership with IBM will increase business uses for the devices. The iPad has "a very bright future," Cook added, although he cautioned he doesn't expect sales trends to change in the next couple of quarters.

New markets

Apple says iPhone sales doubled in China, Brazil and Singapore in the last quarter, despite aggressive competition from South Korea's Samsung and the Chinese companies Huawei and Xiaomi. Cook also boasted the company saw record rates of first-time iPhone buyers and former owners of Android phones who are switching to Apple devices, although he didn't provide specifics.

Overall, Apple reported $74.6 billion in sales and $18 billion in profit for the December quarter, which represents a year-over-year increase of 30 percent and 38 percent respectively. Based on those numbers, analyst Bill Kreher of the Edward Jones investment firm said he'll be raising his forecasts for the company's performance this year.

Even so, he added, as Apple keeps setting records, "it's certainly going to be more difficult for them to continue to beat expectations."

Signaling a rally Wednesday, Apple's stock rose almost 6 percent in after-market trading following the earnings report late Tuesday.

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Fed is expected to remain 'patient' about a first rate hike

WASHINGTON — As the Federal Reserve ends its latest policy meeting Wednesday, it is widely expected to repeat the pledge it made in December: That it will be "patient" in raising interest rates from record lows.

That pledge could endure well into 2015.

The U.S. economy has steadily improved. Yet inflation has dipped further below the Fed's target rate, thanks to plunging oil prices and a surging dollar. The stronger dollar makes foreign goods cheaper in the United States.

The statement that Chair Janet Yellen and her colleagues will issue after the meeting will be scrutinized for any possible clues to a shift in Fed policy. The statement will be all that investors will have to digest because there will be no Yellen news conference after this meeting and no updates to the Fed's economic forecasts.

At the Fed's last meeting in December, its statement said officials thought they could be "patient" in moving to raise their key short-term rate, which has been kept at a record low near zero for six years.

Most economists foresee no rate hike until June at the earliest. And given recent developments, some economists are starting to push back their predicted timetable for the first rate hike to September or December.

Economists at Morgan Stanley say they now think the first rate hike won't occur until March 2016. Other economists say they still expect the first increase to come this year.

"The Fed does have more latitude, given the rise in the dollar and the collapse in oil prices," said Mark Zandi, chief economist at Moody's Analytics. "But I still think the first rate increase will come in June."

Complicating the Fed's timetable is the European Central Bank's just-announced plan to pump 1 trillion euros into its ailing economy. That flood of cash should keep the eurozone's rates ultra-low. Many investors may respond by shifting into higher-yielding U.S. Treasurys. That would strengthen the dollar even more and could push U.S. inflation further below the Fed's 2 percent target.

Under that scenario, the Fed might find it hard to justify a rate hike, which risks weakening the economy and slowing inflation further.

"Standing pat is the best thing to do right now," said David Wyss, an economics professor at Brown University.

Even before the ECB acted last week, anticipation of its move had helped cut the euro's value to a decade-long low against the U.S. dollar. The dollar is also being driven up by strengthening U.S. economic growth.

The plunge in world oil prices, which have fallen 60 percent since June, has contributed to lower inflation even as the U.S. job market has been reviving.

After years of subpar growth, the economy added nearly 3 million jobs added last year, enough to cut the unemployment rate to 5.6 percent. That is just above the Fed's goal of 5.2 percent to 5.5 percent unemployment.

But Yellen and other Fed officials have pointed to other factors — such as weak pay growth and a still-high number of part-time workers who can't find full-time jobs — as evidence that more must be done to achieve a healthy job market.

Prices rose just 1.2 percent in the 12 months that ended in November, according to the Fed's preferred gauge of inflation. When inflation is too low, consumer spending can slow as people delay purchases on the assumption that the same or lower prices will be available later. The biggest fear is deflation — a broad decline in prices and income that can further restrain spending and even tip an economy into recession.

Yellen, who is completing her first year as Fed chair, has had to deal with scattered dissents — from both "doves" who feel more should be done to spur job growth and "hawks" who worry that prolonged low rates could fuel future high inflation.

Two vocal hawks, Charles Plosser, head of the Fed's regional bank in Philadelphia, and Richard Fisher, his counterpart in Dallas, no longer have votes this year under the rotation system for Fed bank presidents. Both are retiring from the Fed in March. The new set of voters lean to the "dovish" camp.

At her December news conference, Yellen said the use of "patient" in describing the timing of a rate hike meant there would be no increase for at least the next couple of meetings. The next two meetings are in March and April followed by a session on June 16-17.

Sung Won Sohn, an economics professor at the Martin Smith School of Business at California State University, is looking for a delay to September or possibly not until year's end.

"My question is, what's the rush?" Sohn said. "We are not running a lot of additional risks by keeping rates low, while if they raise rates prematurely they could derail economic growth."

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Business losses accumulate

Bay State businesses are counting their blessings that the monster blizzard of 2015 has brought only minimal losses.

Jon Hurst, president of the Retailers Association of Massachusetts, estimated the total loss to his members at less than 
$20 million.

"Compared to some other storms, I think it's relatively minor," Hurst said. "It fell during a notoriously slow sales period — after Thanksgiving and Christmas and before Valentine's Day. And it fell during midweek. If it had been this weekend, or right around Valentine's Day, as in 2013, the impact would have been far more severe."

But he acknowledged some businesses were hit harder, such as convenience stores near office buildings that were closed and retailers who have to pay their employees regardless of whether they make it in to work.

Pat Moscaritolo, president and CEO of the Greater Boston Convention & Visitors Bureau, said many Boston hotels fared better than expected. Rooms that had been reserved by travelers who couldn't get to Boston because of canceled flights were taken by people who were stranded here or by employees of Boston businesses, Moscaritolo said.

"So overall, it pretty much balanced out," he said. "What didn't balance out though were retailers and restaurants who lost sales and their staff who would have lost tips."

Stoughton-based Rentals Unlimited, which rents out party equipment, estimates it lost about $10,000 worth of orders. But it expects the majority of those clients to reschedule within the next two weeks, said Jennifer Gullins, vice president of sales.

"We don't expect this to be a significant financial interruption," Gullins said. "Making sure you have a good risk-management plan is the best strategy."

The company began planning for the storm on Sunday. A team of four employees stayed at its Stoughton headquarters, where it has five buildings and three large parking lots, to keep plowing and ensure that none of the buildings suffered damage and it could reopen today, Gullins said.

Auto czar Herb Chambers spent between $10,000 and $15,000 for each of his 54 dealerships just to move cars indoors during the storm — and that's not counting lost sales and service work and paying employees, spokesman George Regan said.

"He still thinks that, despite all the expense, it's worth it," Regan said. "Boston is a great city to do business in."

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Users tweet up storm over Facebook outage

If there's a blizzard and no one can post about it on Facebook, did it really happen?

Social media users might have been pondering that question yesterday when Facebook went down just after midnight, prompting users to take their complaints and snarky comments to Twitter for an hour.

"Things to do when Facebook is down: 1. Tweet that Facebook is down. #facebookdown," Jonathan Gebauer tweeted, using a hashtag spawned by the outage.

"We will sweetly call babies born in 9 mos 'blizzard babies' but in our hearts we will know that they are actually the spawn of #facebookdown," tweeted Nicole Sanchez.

Bay Staters dying to share their artsy photos of the blizzard on Instagram also were out of luck.

"Facebook is one of the most elaborate and robust corporate networks in the world, it's not every day that you see a piece of their network go down, even briefly," said Doug Madory, director of Internet analysis for Dyn, a New Hampshire Internet performance company. "Over a billion plus people around the world have no problem using this site every day."

Facebook said an internal glitch caused the outage, although the hacking group Lizard Squad initially took credit for the disruption on Twitter.

"This was not the result of a third party attack, but instead occurred after we introduced a change that affected our configuration systems," Facebook said in a statement.

Roger Kay, founder and president of Endpoint Technologies Associates, said users have started thinking of Facebook as an essential service that can never go offline.

"I think the public expectation is that it will always be on, but the reality is networks go down sometimes," he said. "This is not critical infrastructure the way the NORAD radar system is, the way the nuclear power plant monitoring system is — this is a digital playground."

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Facebook launching Trending Super Bowl for the big game

PHOENIX — As Facebook's latest step into sports, the social media giant is launching Trending Super Bowl — a real-time hub for content from Sunday's game between the Patriots and Seahawks.

The hub will allow followers to see how the game is going on a scoreboard module, while also viewing Super Bowl-related posts, photos and video posted by professional media, celebrities and friends. The module will also include a running play-by-play from the game, and videos of some of the commercials from the broadcast.

Facebook is trying to improve the experience around big sporting events for users. During last year's Super Bowl, more than 50 million Facebook users had more than 185 million interactions (posts, comments and likes) about the big game.

"We have been the second-screen, real-time audience," says Dan Reed, head of global sports partnerships at Facebook. "This Trending Super Bowl is part of a broader effort to better surface the great conversations happening in real time around live sporting events."

And not only during the game — Trending Super Bowl will be live beginning Saturday morning.

"We know the Super Bowl is an all-day extravaganza and this will certainly be available pregame and during the game and postgame and halftime, of course," Reed adds. "We also recognize it is about the pageantry around the game and the halftime show and the TV commercials."

Facebook wants the hub to be one-stop shopping for all sorts of content for the game. Facebook only will present material posted by official owners, such as what the NFL is posting on its Facebook page, or interesting and enlightening items posted on individual Facebook pages by anyone.

Facebook isn't new to the biggest sports happenings. Last year, it saw 350 million people worldwide engaged in conversation around the World Cup.

Surveys have shown that two-thirds of TV viewers use social media during a broadcast. Of those people who are on social media while watching, 85 percent are using Facebook, the company says.

Also of benefit to Facebook, Reed says, are the quarterbacks in the game. Tom Brady has become the "most-liked" NFL player with more than 3 million, recently passing Troy Polamalu. Russell Wilson is a frequent user, including a locker room shot of him with the NFC championship trophy after Seattle's overtime victory against Green Bay.

"Tom is a real model for how the paradigm is changing for how athletes can interact with the fans," Reed says. "There's always interest in seeing what Tom Brady posts after a game, they are so authentic and entertaining.

"Having both of those players active on Facebook is certainly great for us; they can't post during the game, unfortunately," Reed adds with a laugh.

So where can this lead?

"We really want to incorporate the amazing experience you get when you attend the game into the lean-back experience of watching at home," Reed says. "We feel we are best positioned to do that; we represent the largest collection of sports fans anywhere on the planet."

___

AP NFL website: www.pro32.ap.org and www.twitter.com/AP_NFL

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Super Bowl ads: Godaddy may be up to its old tricks

GoDaddy has done a lot of growing up since it first advertised in the Super Bowl in 2005. Now, a stunt it pulled Tuesday suggests the company is reverting back to its infancy.

GoDaddy seems to have put one over on an easily-duped populace, telling consumers it has decided to pull a Super Bowl ad it has been touting for weeks because of complaints it has received about the way it portrays a puppy at the center of the effort. But it feels like this was something the company had planned all along.

The ruckus started after GoDaddy gave a sneak preview of the ad to NBC's "Today" program The spot, crafted by Barton F. Graf 9000, shows a clever pup being bounced out of a pick-up truck, then finding its way home over many miles of terrain, only to discover he is being sold because the web-hosting firm helped its owner discover a quick way to sell him as part of a small business she created. Reaction was decidedly tepid.

In a posting online, the company's chief executive, Blake Irving, said GoDaddy was taking the ad out of the game. "We are pulling the ad from the Super Bowl. You'll still see us in the Big Game this year, and we hope it makes you laugh," he said.

To be sure, the company's current narrative may represent exactly what has taken place. Yet pieces don't fit together as neatly as they might seem. How did GoDaddy pull one ad and have another one ready to go so quickly? After all, Super Bowl ads are screened weeks in advance by the network broadcasting the game as well as the National Football League, and GoDaddy had said in recent weeks it would only air one spot in the 2015 game. To have a back-up ready to roll, GoDaddy would have had to have secured approval sometime after the start of 2015.

And here's something even more radical. After using race-car driver Danica Patrick in its Super Bowl commercials since 2007, GoDaddy will not be featuring her in Sunday's commercial, according to Elizabeth Driscoll, a company spokeswoman. Patrick had been scheduled to be part of the 2015 campaign. That doesn't seem like a move that is made on the spur of the moment. Small wonder, then, that the racer is appearing this week in a teaser video for Coca-Cola for its Super Bowl campaign that will take aim at online bullying and other bad digital behavior.

So it certainly seems as if GoDaddy has something even more eyebrow-raising planned for Sunday, and its puppy pitch - a campaign the company has been touting for weeks, even going so far as to unveil the dog to be used in the now-yanked spot - looks to be a mere feint in a much larger effort.

The company has tried to burnish a reputation over the past few years for being a mature and responsible advertiser. After years of producing its Super Bowl spots with a lot of in-house elbow-grease, GoDaddy in 2012 hired Deutsch, an ad agency that is part of the ad-agency holding company Interpublic Group. Among other marketing feats, Deutsch helped bring Snapple to wider acclaim.

Yet the new moves can't erase history. Under former CEO Bob Parsons, GoDaddy would regularly air tawdry Super Bowl spots with low-fi production values. An early 2005 ad in Super Bowl XXXIX featuring former WWE wrestler Candice Michelle suffering from a snapped spaghetti strap on a tank top as she began to testify before a Congressional committee focused on censorship is a perfect example.

In the years that followed, Parsons would regularly keep the public updated on the company's Super Bowl efforts, suggesting that an ad submitted to ABC was deemed too racy and had to be cut or scrapped, then asking readers of his blog what they thought about the whole thing. In doing so, he embraced the idea of social media before the term was even coined - but also showed the company's willingness to indulge in a little hucksterism at the same time.

"It's not a publicity stunt," he told The Wall Street Journal in 2007. Even if he never intended it to be, it was.

And that seems like the case here. An ad conveniently yanked with just hours to go before kickoff. A vow from the current CEO that GoDaddy will stay in the game. Is history repeating itself?

The company has reason to make sure it stands out. No less than three different Web-servicees companies are flocking to Super Bowl XLIX. You've got newcomer Wix.com, which will tap Brett Favre and "Entourage" actor Rex Lee. And you've got Squarespace, a company making its sophomore turn as a Super Bowl advertiser and who has tapped the ad firm of Wieden + Kennedy- known in the industry for its outside-the-box creativity,which in recent years has been put to extraordinary use for both Chrysler and Coca-Cola.

So maybe GoDaddy felt an ad about an ill-treated puppy simply wouldn't cut the mustard. Or maybe - just maybe - it's maximizing a media that has fully embraced positing and airing Super Bowl ad teasers as newsworthy, rather than what the acts really are - pretenses for free publicity. If this is indeed a childish ploy, it shouldn't necessarily be rewarded with attention or applause.

© 2015 Variety Media, LLC, a subsidiary of Penske Business Media; Distributed by Tribune Content Agency, LLC

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