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ROGUE ONE:
STAR WARS BLASTS
BACK INTO THEATERS

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COLORADO INTERNET-TAX TRUMP TARGETS F-35,


CASE COULD CHANGE BUT AIRCRAFT MEANS
ONLINE SHOPPING JOBS IN 45 STATES

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6 WAYS TO KEEP PHONE
CHARGES LOW DURING
INTERNATIONAL TRAVEL

20 130
BANKING ON CHANGE: TECH STARTUPS TARGET FINANCIAL SERVICES 08

APPLE CHIEF TIM COOK PICKED TO GIVE MIT COMMENCEMENT SPEECH 28

TECH LEADERS COULDNT BEAT TRUMP; THEYLL MEET HIM INSTEAD 30

REDSTONE FIRM CALLS OFF CBS,VIACOM MERGER PROPOSAL 48

GOVT PROPOSAL ENVISIONS PHONE CALLS ON AIRLINE FLIGHTS 76

TITANS OF NEW INDUSTRY SPRING $1 BILLION CLEAN ENERGY FUND 82

GOOGLE, CUBA SIGN ALLOWING FASTER ACCESS TO COMPANYS DATA 86

BOX OFFICE TOP 20: MOANA 112

SNAPCHAT: HOW THE VANISHING-PHOTO APP MANAGED NOT TO FADE 122

MICHIGAN LETS AUTONOMOUS CARS ON ROADS WITHOUT HUMAN DRIVER 138

NASA TROUBLESHOOTING DRILL PROBLEM ON MARS CURIOSITY ROVER 156

FOSSIL FUEL MEETS RENEWABLES: VERMONT GAS STATION GOES SOLAR 160

CHRISTMAS DELIVERY AT SPACE STATION, COURTESY OF JAPAN 164

CIVIL RIGHTS GROUPS OPPOSE BOSTON PLAN TO COMB SOCIAL MEDIA 168

GOOGLES SELF-DRIVING CAR PROJECT GETS A NEW NAME: WAYMO 170

TOP 10 APPS 92
iTUNES REVIEW 96
TOP 10 SONGS 146
TOP 10 ALBUMS 148
TOP 10 MUSIC VIDEOS 150
TOP 10 TV SHOWS 152
TOP 10 BOOKS 154
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BANKING
ON CHANGE:
TECH STARTUPS
TARGET FINANCIAL
SERVICES

It may not be much longer before bank


branches join video-rental stores and record
shops as relics of a bygone era.

Silicon Valley is pressuring banks to change


their ways or risk becoming the latest industry
overtaken by technology. Hundreds of startups
are offering easier and cheaper ways to save,
borrow, spend and invest. They are doing it
by shifting the battleground to smartphone
apps and websites, which function as digital
offices that are accessible around the clock with
minimal staffing, and by lowering fees.

Given how much customers dislike it, the


financial services industry seems ripe for
Image: Ben Margot
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disruption, as Silicon Valley likes to call
industry upheaval. These financial technology,
or fintech, startups may also soon get further
validation from a key banking regulator.
Comptroller of the Currency Thomas Curry last
week announced plans for a special national
bank charter that would allow fintechs to offer
their products without having to get regulatory
approval state to state. Part of Currys motivation
lies in his belief that fintech can help consumers
who either dont want or cant afford to establish
accounts with traditional banks.

At this point, the fintech sector hasnt proven


it can be a viable or trustworthy alternative to
traditional banks and stock brokerages. Few of
the startups have ever posted a profit, and one
of the biggest, the Lending Club, is trying to
recover from a breakdown that triggered the
resignation of CEO Renaud Laplanche earlier this
year. The Justice Department is investigating the
events that led to Laplanches abrupt departure.

The disruption in banking is coming later than


other areas because of the complexity of the
regulations and the amount of trust required,
Laplanche said in an interview earlier this year,
while he was still CEO. Trusting you with my
savings is not like booking a trip online.

Banks, meanwhile, have demonstrated their


resiliency and resourcefulness. With the help
of taxpayer-backed bailouts, the industry has
survived a financial crisis of its own making, and
now appears to be tackling the fintech threat.
They are closing branches, laying off workers,
pouring money into their own technology
departments and even buying or teaming up
with fintech startups.

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TAKING THE THREAT SERIOUSLY
Whenever I talk to big banks, they ask, What
are the disruptors doing? Which of their ideas
can I copy? says Forrester Research analyst
Oliwia Berdak.

A recent survey of the financial services industry


by the research firm Gartner Inc. found that
70 percent of respondents considered fintech
startups to be a bigger threat than their
traditional rivals.

With their guard up, the much bigger banks are


more likely to drive many of the fintech startups
out of business if they dont acquire them first,
says Gartner analyst Rajesh Kandaswamy. But even
in that scenario, he predicts many of the ideas
coming out of fintech will survive in one way or
another, which will be beneficial for consumers.

About $850 billion in consumer banking revenue


in the U.S. alone is at stake. Fintech captured just
1 percent of that last year, according to a Citibank
study. By 2023, though, Citibank expects fintech
to control 17 percent of a $1.2 trillion market.

Emboldened by predictions like that,


fintechnologists tend to be brash, like many
of the entrepreneurs who have successfully
reshaped other industries.

A BIG, BOLD APPROACH


During the next 10 years, we are going to
create an international company that will be
like nothing the financial services industry
has ever seen, boasts Baiju Bhatt, co-founder of
Robinhood, a stock brokerage that does
not charge any commissions for its more than 1
million customers to buy and sell shares.

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To make money, Robinhood recently introduced
a $10 monthly service that allows trading when
the stock market is closed and offers higher
borrowing limits.

At Affirm, an online lender, CEO Max Levchin is


attempting to reshape finance for a second time
after making his first big splash in Silicon Valley
as a co-founder of PayPal, a digital payment
service born in the 1990s.

Helped by his pedigree, Levchin has raised $525


million to back Affirms focus on consumers who
do not like or cannot get credit cards. Instead
of providing a revolving line of credit with
high interest rates that compound, Affirm has
developed its own formula to identify borrowers
able to repay loans in equal installments in time
frames ranging from three months to one year.

Affirm also refuses to charge fees for late


payments, to further distinguish itself from
banks and other credit card issuers.

I just dont think you can run a business by


screwing your customers these days, Levchin
says. I would like to think we are returning to
what lenders are supposed to do.

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CUSTOMERS STILL
ARENT TOTALLY SOLD
Although many consumers rarely expect big
banks to act in their best interests, they typically
consider them to be a safer place to keep money
because of their long histories in business, says
Forresters Berdak. Like the big traditional banks,
most digital-only banks also offer government-
backed insurance on deposits, but Berdak
says that is not enough to overcome lingering
doubts about their long-term prospects.

Lending Club, for instance, has been operating


under a cloud since revealing that paperwork for
$3 million in loans had been falsified
under Laplanches leadership. Laplanche
declined to comment about circumstances
surrounding his resignation.

INVESTORS ARE SKEPTICAL, TOO


Although Lending Club was considered one of
the most promising fintech companies, its stock
has been hammered. The shares are hovering
about 60 percent below their initial public
offering price of $15 in 2014.

Most fintechs are still mining venture capitalists


and other financiers as they try to gain a
foothold. More than $50 billion has been
invested in the sector since 2010, with all but
$10 billion coming in the last two-and-a-half
years. Even some of those investors believe
fintechs may be underestimating the degree of
difficulty facing them.

I am a believer that the bank of the future will


be a collection of apps on your phone, but I also
believe there is a lot of hubris underlying the idea
that its easy to create a bank, says Savneet Singh,
Image: Brendan McDermid
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who has invested in about 10 fintech startups so
far. He is also founder and president of GBI, an
online exchange for trading gold and silver.

UNLOCKING A YOUNG MARKET


Fintechs target market so far has been the
millennial generation, the 18- to 34-year-olds
who typically have a deeper attachment to their
smartphones than any bank.

They are customers like Fred Miller, who opened


his first account as a teenager a decade ago and
quickly became disillusioned with the array of
fees charged for everything from late payments
to ATM withdrawals.

After years of frustration, Miller defected to


Simple, a digital bank that Australian immigrant
BANKING ON CHANGE: TECH STARTUPS TARGET
FINANCIAL SERVICES started in 2010 after
concluding that U.S. banks went out of their
way to screw customers out of their money.

Besides eschewing service fees, Simple also


offers money management tools that help
their customers set aside money. Miller, an
Indianapolis resident, credits those tools
for helping him and his wife, Emily, repay
$30,000 in student loans and squirrel away
enough money for a trip to New Zealand
earlier this year.

Miller doesnt think it would have happened


had they kept their money in a traditional bank.
I never really understood how a bank could let
me spend money that wasnt in my account and
then charge me a fee for it, Miller says. How
is anyone supposed to get ahead in life if their
bank is not friendly to them?

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COLORADO
INTERNET-TAX
CASE COULD
CHANGE ONLINE
SHOPPING

Buying things online could get pricier after the


U.S. Supreme Court rejected a case Monday that
could ultimately lead to states collecting billions
of dollars in sales taxes lost to increasingly
popular internet retailers.

The court would not hear a challenge to a


Colorado law requiring online sellers such as
Amazon.com to notify customers and the state
how much they owe in taxes. State officials have
estimated that Colorado alone has been missing
out on as much as $172.7 million a year.

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At least three other states - Louisiana, Oklahoma
and Vermont - have passed similar laws that
could take effect given the resolution of the
Colorado case.

Though the court didnt endorse Colorados


law and could even weigh in against it if
given a different case, other states are likely
to see Mondays move as a green light to
step up collection efforts. That comes despite
a 1992 Supreme Court decision saying
retailers must have a physical presence in a
state before officials can make them collect
sales tax.

Online shoppers always have owed state sales


taxes on their purchases, but the rule has
been widely ignored. States have spent years
examining ways to capture those lost tax dollars,
but their options are limited when the retailers
are not based in the state.

So-called Amazon taxes that started in New York


have not been adequate to fill the widening
gap, said Mark Behlke, director of budget
and tax policy for the National Conference of
State Legislatures.

Sales taxes account for about a third of revenue


in many states, more in those with no income
taxes, such as Texas and Florida. And with online
sales going up about 15 percent a year, states
are increasingly feeling the effects of those taxes
going unpaid.

The Colorado Legislature found a possible


solution in 2010 when it passed a law requiring
online retailers to notify customers to pay sales
tax and report purchases to the state. Thats not
the same as demanding tax payments from out-
of-state retailers.

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The Data and Marketing Association sued, and
a federal judge put the law on hold in 2012. A
year later, a federal appeals court sided with
Colorado. The association appealed to the
nations highest court, arguing that the law
would meddle in interstate commerce.

The marketing group said the Supreme Courts


refusal to hear the case could have far-reaching
implications for online shoppers.

It will only encourage other states to adopt


similar laws and regulations that are designed
to put arbitrary burdens on out-of-state sellers,
association vice president Emmett OKeefe said
in a statement.

Supporters of Colorados law agreed it sends


a strong signal that reporting requirements
dont infringe on constitutional protections for
interstate commerce.

This settles the issue, once and for all, that


the 2010 law is constitutional, it was not an
undue burden on business, said Tim Hoover,
spokesman for the Colorado Fiscal Institute,
which supported the law.

George S. Isaacson, who represented the


marketing group and teaches constitutional
law at Bowdoin College, said the high court
may simply be waiting to see more states
copy Colorado.

Colorado was the first state to pass such a law,


and the Supreme Court may be waiting to see
how other state legislatures and lower courts
deal with this type of highly controversial state
legislation before addressing the constitutional
issues, Isaacson said in a statement.

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Image: Gregor Schuster
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ads@applemagazine.com

MindeldDigital
Image: Ariel Zambelich
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APPLE CHIEF TIM COOK
PICKED TO GIVE MIT
COMMENCEMENT SPEECH

The Massachusetts Institute of Technology has


chosen Apple CEO Tim Cook to deliver its 2017
commencement address.

MIT made the announcement on its website


last week. It says Cook will headline the June 9
ceremony. It calls Cook an advocate for equality
and a champion of the environment.

MIT President L. Rafael Reif says Cooks brilliance


as a business leader and his passion for
important issues will resonate with its graduates.

Cook has led Apple Inc. since 2011. He has


degrees from Auburn University and Duke
University. He says his Cupertino, California-
based company is proud to have many MIT
graduates on its team and he looks forward to
giving the speech.

MITs 2016 speaker was Jason Bourne


actor Matt Damon, who followed U.S. Chief
Technology Officer Megan Smith.

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TECH LEADERS
COULDNT BEAT
TRUMP; THEYLL
MEET HIM INSTEAD

Technology leaders are about to come face-to-


face with President-elect Donald Trump after
fiercely opposing his candidacy, fearful that
he would stifle innovation, curb the hiring of
computer-savvy immigrants and infringe on
consumers digital privacy.

On Wednesday, Silicon Valley luminaries and


other technology leaders are headed to Trump
Tower in New York to make their peace - or
press their case - with Trump and his advisers.
The CEOs planning to attend include Apples
Tim Cook, Alphabets Larry Page, Microsofts
Satya Nadella, Amazons Jeff Bezos, Intels Brian
Krzanich, IBMs Ginni Rometty, Oracles Safra Catz
and Cisco Systems Chuck Robbins.

Facebooks chief operating officer, Sheryl


Sandberg, will be on hand instead of its CEO,
Mark Zuckerberg, who was one of many tech
executives to express misgivings about Trumps
pledge to deport millions of immigrants.

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Image: Carlos Osorio
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TECH VS. TRUMP
It could be a prickly meeting.

No other industry was more open in its


contempt for Trump during the campaign. In
an open letter published in July, more than
140 technology executives, entrepreneurs and
venture capitalists skewered Trump as a disaster
for innovation.

And Trumps denigration of Mexicans, his


pledge to deport millions of immigrants now
living in the U.S. illegally, and his crude remarks
about women were widely viewed as racist,
authoritarian and sexist by an industry that
prides itself on its tolerance.

Trump, in turn, sometimes lashed out at the


industry and its leaders.

He lambasted Bezos for the campaign coverage


of his newspaper, The Washington Post, and
suggested that Amazon could face antitrust
scrutiny if he was elected.

Trump also rebuked Cook for fighting a


government orderrequiring Apple to unlock an
encrypted iPhone used by a shooter in last years
terrorist attack in San Bernardino, California.

Image: Andrew Harnik


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And Trumps repeated screeds against
immigrants raised fears that he might dismantle
programs that have enabled tech companies to
hire tens of thousands of foreign workers with
the skills to write computer programs, design
web pages and build mobile apps.

The industry is also worried that Trump might


try to undermine net neutrality, a regulation
requiring internet service providers to offer
equal access to all online services. Trumps harsh
characterization of the media as dishonest and
unfair has raised other fears that he might even
try to restrict free speech online.

OUT OF STRIFE, PEACE?


Some in Silicon Valley think the industrys best
move would be to keep its distance until Trump
changes his tone. Former Google executive
Chris Sacca, now a tech investor, argues that
industry leaders should steer clear of the
meeting altogether.

Sitting down with the president-elect would


only make sense after Trump has given public
assurances he wont encourage censorship,
will stop exploiting fake news, will promote net
neutrality, denounce hate crimes, and embrace
science, Sacca said. If and until then, tech
figures who visit are being used to whitewash
an authoritarian bully who threatens not just our
industry, but our entire democracy.

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Most of the companies with executives
attending Wednesdays meeting declined to
comment ahead of the gathering. But Oracles
Catz said in a statement that she plans to tell
Trump that we are with him and are here to
help in any way we can. If he can reform the tax
code, reduce regulation, and negotiate better
trade deals, the U.S. technology community will
be stronger and more competitive than ever.

Other tech institutions are also signaling an end


to the animosity.

The Internet Association, a trade group whose


members include Google, Facebook and
Amazon, praised Trump in an open letter last
month for his use of Twitter and other digital
tools to help him get elected. The letter also
appealed to Trumps emphasis on the economy,
citing statistics estimating that the internet
sector accounted for nearly $1 trillion of the
countrys gross domestic product.

Some conservatives say theyre actually worried


that Trump might get too friendly with tech.
Peter Flaherty, the president of the National
Legal and Policy Center, charges that big
technology companies exploited their close
relationship with President Obama to feather
their nests and push for policies that benefit
them at the expense of the American worker.

Trump spokeswoman Hope Hicks said by email


that the president-elect looks forward to
meeting with this important group of industry
leaders and true innovators.

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COMMON GROUND: TAX CUTS
The technology industry already supports one
of Trumps ideas. He has promised to temporarily
reduce the corporate tax on foreign profits from
the current 35 percent to 10 percent to give U.S.
companies an incentive to bring their overseas
cash back home.

Its a cut that Cook has been pushing Congress


to make because Apple has $216 billion, or 91
percent of its total cash, in overseas accounts.
Other tech companies in line to benefit the
most from a tax reduction include Microsoft,
Cisco, Microsoft and Googles corporate
parent, Alphabet.

But Trump might not be doing many other


favors for technology companies given
his history of holding grudges against
his opponents, said Larry Irving, a former
government affairs executive for Hewlett-
Packard who now runs a consulting firm.

Everything Trump has done so far suggests


that he rewards loyalty and punishes disloyalty,
Irving said. The tech industry better have some
pontoons ready.

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TRUMP TARGETS
F-35, BUT AIRCRAFT
MEANS JOBS IN
45 STATES

President-elect Donald Trump is vowing to


corral the out of control cost of the F-35 Joint
Strike Fighter. But congressional Republicans
and Democrats, aware of the tens of thousands
of jobs the aircraft generates in 45 states, will be
wary of any plans by Trump to cut the program.

A Monday morning tweet from Trump


targeting the F-35 doesnt explain exactly
how hell save billions of dollars in military
purchases while also honoring a campaign vow
to rebuild the armed forces. Once Trump is in
office, he can propose deep cuts to the F-35 or
even elect to cancel the program altogether.
But Congress, not the president, controls the
governments purse strings and makes the final
decisions about the budget.

Built by defense giant Lockheed Martin,


the nearly $400 billion price tag for the
F-35 makes the program the Pentagons
most expensive weapons acquisition ever.

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Despite the huge cost, the program has
strong bipartisan support in Congress, where
lawmakers view the aircraft as essential to
national security.

After Trumps tweet, Lockheed Martins shares


tumbled, wiping out nearly $4 billion of the
companys market value. The F-35 program
made up 20 percent of Lockheeds total 2015
revenue of $46.1 billion. U.S. government orders
made up 78 percent of its revenue last year.

Whoever has this airplane will have the most


advanced air force in the world. Thats why were
building the F35. Thats why its important to not
only the U.S., our partners and our partners like
the Israeli Air force to have this airplane, said Jeff
Babione, general manager of the F-35 program,
at a base in Israel.

Israel and several other U.S. allies are also buying


the F-35, expanding the programs international
footprint. Defense Secretary Ash Carter visited
Israel on Monday as Tel Aviv received the first
two next-generation F-35 fighter jets that will
help preserve the countrys military edge in the
volatile Mideast.

The F-35, which uses stealth technology to


avoid being detected by radar, is being built
in different configurations to be used by the
Air Force, Navy and Marine Corps. The Navys
version, for example, is designed to take off and
land on an aircraft carrier.

Current plans call for the United States to buy


nearly 2,500 F-35s. Close to $13 billion will be
needed annually between 2016 and 2038 to
hit that procurement number, according to the
Government Accountability Office.

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Image: David Drais
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While the F-35 had massive budget overruns
early on, the cost has stabilized and even
dropped a bit following tough negotiations
between the Pentagon and Lockheed
Martin, according to Todd Harrison, a defense
budget expert at the Center for Strategic and
International Studies.

Trump is unlikely to squeeze more blood out of


this rock, Harrison said.

Lockheed said that it has worked to lower the


price of the F-35 by 60 percent and expected
the aircraft to cost $85 million each in 2019
and 2020. But the companys estimate appears
to omit the price of the engine and the cost of
development. When those elements are added
in, the cost per F-35 in current-year dollars is
closer to $138 million, according to Harrison.

Companies from 45 states are involved in the


F-35s production, with Texas, Georgia, California,
Arizona and Florida playing the leading roles
in testing and manufacturing the jet fighter.
The company is teamed with more than 1,250
domestic suppliers to produce thousands of
components ranging from highly sophisticated
radar sensors to parts of the aircrafts fuselage,
according to Lockheed Martin.

Overall, the F-35 program is responsible for


more than 146,000 U.S. jobs, the company said.

The Lockheed Martin plant where the F-35 is


being built is located in Texas Republican Rep.
Kay Grangers district. Shes vice chair of the
defense appropriations subcommittee. Rep.
Mac Thornberry, the Republican chairman
of the House Armed Services Committee,
represents the district next door to Grangers.

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In a statement Monday, Granger hailed the F-35
delivery to Israel, calling the aircraft what we
need to keep our two countries safe in these
dangerous times.

Thornberrys committee has supported buying


more F-35s than the Obama administration
had asked for in its budget request. The F-35
will replace an aging inventory of U.S. aircraft
that many lawmakers believe are becoming
increasingly unsafe to fly.

Claude Chafin, a committee spokesman,


said Thornberry shares the president-elects
determination to have the Pentagon get
weapons in the hands of our troops faster, while
being better stewards of the taxpayer dollar.

The tweet on the F-35 marks the second


time in a week Trump has blasted U.S. aircraft
spending. Last week, he tweeted that costs to
build new presidential planes by Boeing Corp.
were out of control and ended the tweet with
Cancel order!

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Image: Alex Wong
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REDSTONE FIRM
CALLS OFF CBS,
VIACOM MERGER
PROPOSAL

Media mogul Sumner Redstones National


Amusements is abandoning a proposal that CBS
and Viacom reunite after a 10 year split.

The news comes as Viacom named acting CEO


Bob Bakish as its permanent head.

National Amusements, which owns most of the


voting shares of the two companies, had urged
the companies to combine in September, saying
that a tie-up would help them compete better
as technology and the entertainment industry
rapidly evolve.

Now, the company, run by Redstone and his


daughter Shari, says that following management
changes at Viacom and strength at CBS, which
operates CBS, Showtime and other entities,
it makes more sense for the companies to
continue as separate entities.
Image: Jim Smeal
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Viacom, which owns the Paramount Pictures
movie studio and pay TV channels such as
Comedy Central, MTV, BET and others, has been
struggling to improve its profit as Paramount
has struggled to produce hits and cable
viewership declines.

The company named Robert Bakish as acting


president in late October and appointed him
permanent president and CEO on Monday.

The appointment caps off a management saga


that culminated earlier this year, when longtime
Viacom CEO Phillipe Dauman was pushed
out following a legal battle with media mogul
Sumner Redstones daughter, Shari Redstone,
over control of the company. The fight ended
with Shari Redstone as a Viacom director and
president of National Amusements, which has
a controlling stake in CBS and Viacom. At the
time Tom Dooley was named interim CEO, but
he announced unexpectedly he was leaving in
October and Bakish was then named acting CEO.

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Meanwhile, as more people cut the cable cord,
choosing instead to stream TV shows or movies
online at places like Netflix, Hulu, iTunes and
Amazon.com, CBS has found success under Les
Moonves streaming its popular shows like NCIS
and The Big Bang Theory, as well as its stand-
alone, streaming Showtime channel.

There would have been cost savings if the


companies combined, but strategically, the
positives werent as clear, said Instinet analyst
Anthony DiClemente.

This allows CBS to continue to operate in a very


nimble and autonomous fashion, DiClemente
said. For Viacom, I think in terms of long term
strategy, the verdict is still out.

Viacom said in a statement that it received


the letter sent by National Amusements and
will provide more updates later. CBS referred
comment to National Amusements.

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Image: Johannes Eisele
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A new Star Wars film has arrived in theaters - and
in case you need reminding, it isnt Episode VIII.
That wont be with us until this time next year
but in the meantime, were getting something
else that, considering how played-down its
significance has been, could take many of us by
surprise. Its called Rogue One: A Star Wars Story
and is the first in a new Star Wars Anthology
series of movies. Lets return to a long time ago
in a galaxy far, far away...

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THE ABSENCE OF THE JEDI HANGS OVER
THE MOVIE
While we can look forward to meeting up again
with Daisy Ridleys Force-sensitive scavenger Rey
and John Boyegas defected ex-Stormtrooper
Finn in Episode VIII, Rogue One is very much
intended to be a one-off (yes, weve resisted a
Rogue One-off pun), in line with the ethos of
the new Anthology series. Not that we should
be concerned; this format gives the filmmakers
a flexibility rarely handed to directors of major
franchise films, let alone Star Wars adventures.

That kind of observation has been made by


Rogue One actress Felicity Jones who, like
Ridley before her, will have the rare distinction
of being a female lead of a global blockbuster.
Shes playing Jyn Erso, a rebel soldier who is
part of a larger band of rogue fighters intent on
stealing the design plans of the Galactic Empires
new weapon, the Death Star. The film takes
place between Episode III: Revenge of the Sith
and Episode IV: A New Hope.

Its actually in A New Hope that Luke Skywalker


uses those plans to destroy the Death Star
so for many long-time followers of the sci-fi
franchise, this is going to be a super-exciting
addition to the canonical narrative. However,
if you havent yet seen Rogue One, you should
expect a more down-to-earth and gritty war film
than you have come to expect from the series.
Director Gareth Edwards has explained: Its the
reality of war. Good guys are bad. Bad guys are
good. Its complicated, layered; a very rich
scenario in which to set a movie.

In terms of the story, as Edwards has clarified,


Rogue One comes down to a group of

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individuals who dont have magical powers that
have to somehow bring hope to the galaxy.
Thats because, in this film, the Jedi basically
dont exist. Its about the fact that Gods
not coming to save us, Edwards remarked,
adding: The absence of the Jedi hangs over the
movie. The cast certainly looks up to the task of
a more adult Star Wars film; for example, Mads
Mikkelsen appears as Jyns father Galen Erso,
while Forest Whitaker plays Clone Wars veteran
Saw Gerrera.

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Image: Jonathan Olley
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AN EXCITING AND ECCENTRIC
WORLD PREMIERE
Rogue Ones world premiere took place
at Los Angeles Pantages Theatre at
Hollywood & Vine block on the evening of
Saturday, December 10 and while it was
an unsurprisingly smaller global unveiling
than that of The Force Awakens last year, there
remained lots to report. Full-size X-Wing and
TIE Fighter craft made appearances, as did
stars that arent in the film, including Christian
Bale, Joss Whedon and Michael Douglas. Thats
before mentioning the Avalon Hollywood after-
party, where Death Star-shaped cakes and
drinks were served.

Plus, some members of the team behind the film


were on hand to chat to the press. Jones told
The Hollywood Reporter that her character
is a leader, but she is not bossy, which is a
wonderful distinction, while Donnie Yen told
of his apprehension at being the franchises
first Chinese actor. Nonetheless, he added
that there are so many Chinese people in the
world that I felt, as an actor, this was a part of
my responsibility. Meanwhile, having seen
Rogue One screening at the premiere, Kevin
Smith tweeted that the film was unbelievably
wonderful and #EmpireStrikesBack great!

62
63
64
Image: Jonathan Olley
65
THE FANBASE IS STILL STRONG
IN THIS ONE
So, exactly how big is the Star Wars franchise
today? Last year, shortly after the record-
breaking theatrical release of The Force
Awakens, Fortune attempted to tally some
numbers. The news site estimated that the
inflation-adjusted box office takings of the
Star Wars films had reached $7.3 billion, and
suggested that the home entertainment sales
would, following the first year of availability
for The Force Awakens, total $5.749 billion.
Taking into account sales of toys, merchandise,
video games and more, Fortune estimated the
franchises total value to be $41.979 billion.

66
Nearly four decades after the first films release,
Star Wars fandom clearly remains incredibly
strong. WhatCulture has remarked: Theres
pretty much no movie franchise with as
passionate a fanbase as Star Wars, not
even the Marvel Cinematic Universe. A
good example of how the fans express their
enthusiasm is through cosplay: just look at
photos from the Star Wars Celebration 2016
event in London in July. Jedi and Sith were
represented among the various costumes, but
we have to admit to being especially keen on
the fans dressing as Lego mini-figure versions of
Star Wars characters...

67
68
Image: Jonathan Olley
69
70
UPCOMING ADDITIONS TO
THE STAR WARS SAGA
We already have a good idea of what the next
Star Wars Anthology film will be like. While the
official title hasnt been revealed, it will star Han
Solo in his younger years and follow him as he
first gets his hands on the Millennium Falcon.
Alden Ehrenreich and Donald Glover will play,
respectively, Han Solo and Lando Calrissian,
roles taken by Harrison Ford and Billy Dee
Williams in the classic trilogy. Game of Thrones
actress Emilia Clarke has also joined the cast,
but its currently unclear what character she will
play. The film is set for 2018, with a third Star
Wars Anthology film following for 2020.

Before either of those films, theres Episode VIII,


but little is publicly known about that adventure.
Mark Hamill, who will be reprising his iconic role
as Luke Skywalker, even told Polygon that his
involvement was like working for the CIA,
due to the stringent secrecy measures employed
by the production crew. However, director Rian
Johnson has said that the movie will pick up
right where The Force Awakens left off, with
Rey having met up with Skywalker.

We can also expect Episode VIII to be less


nostalgic; Johnson has said that it will zoom
into the characters, getting to the heart of
them and challenging them. That said, Leia,
Chewbacca, C-3PO and R2-D2 are all returning,
while Lukes role will be extended Hamill has
reported recording dialogue for the movie.
Adam Driver, who plays Kylo Ren, has likened
Episode VIII, in tone, to 1980s The Empire Strikes
Back and judging from an aerial shot of filming
in Ireland, the Knights of Ren might appear.

Image: Jonathan Olley


71
72
Image: Jonathan Olley
73
74
HAS YET ANOTHER ENDURING STAR
WARS CLASSIC ARRIVED?
Throughout its long history, the Star Wars
franchise has been regularly generating
excitement, defying expectations and breaking
records The Force Awakens alone has broke
several. Many moments from the franchise,
including Darth Vaders I am your father in The
Empire Strikes Back and his climactic lightsaber
fight with Luke Skywalker in Return of the
Jedi, are among the best-known in cinematic
history. Will Rogue One add a few more golden
moments to fans memories of the series? Theres
only way to judge that by watching the movie
for yourself.

Indeed, with the news that an exclusive behind-


the-scenes clip for Rogue One has been added
to the iTunes Extras of Stars Wars: A New Hope,
enabling you to go on location with Jones and
Edwards, there may have never been a better
time for you to re-familiarize yourself with
possibly the greatest film franchise on Earth.

by Benjamin Kerry & Gavin

75
GOVT PROPOSAL
ENVISIONS
PHONE CALLS ON
AIRLINE FLIGHTS

Airlines could let passengers make in-flight


phone calls using Wi-Fi under a proposal from
federal regulators.

Flight attendants and others have complained


that the calls could be disruptive. But the
Department of Transportation said last week
that it envisioned allowing the calls if airlines tell
all customers about the policy when they buy
their tickets.

That way, customers could make other travel


arrangements if they feared sitting next to
passengers chatting on their phones.

There is a 60-day comment period, and the


proposal leaves the door open to the possibility
that federal officials could still impose an
outright ban.

The Federal Communications Commission


prohibits passengers from making cellphone
calls during flights, but not Wi-Fi calls.

76
77
Image: Ben Pipe
78
Todays proposal will ensure that air travelers
are not unwillingly exposed to voice calls, as
many of them are troubled over the idea of
passengers talking on cell phones in flight,
Transportation Secretary Anthony Foxx said in
a statement. In 2014, the department issued a
request for public comments on the possibility
of permitting the calls and the response was
overwhelmingly negative.

Sara Nelson, president of the Association of


Flight Attendants-CWA, said anything short of a
ban on calls is reckless. Flight attendants have
said previously that they fear the calls could lead
to fights between passengers who want to make
calls and passengers who dont want to listen to
the conversations.

It threatens aviation security and increases the


likelihood of conflict in the skies. It threatens
safety for crews and passengers, Nelson said.

However, the U.S. airlines trade group opposes a


government ban on in-flight calls.

We have long held that this was not a matter for


DOT to regulate, and we believe airlines should
be able to determine what services can be
safely offered in flight and make those decisions
based on what is in the best interests of their
passengers and crewmembers, a spokeswoman
for Airlines for America, Kathy Grannis Allen, said
by email.

Southwest Airlines and Alaska Airlines said they


have no plans to allow voice calls.

Our customers have expressed concerns


regarding the potentially disruptive nature of
in-flight voice calls, said Southwest spokesman
Brian Parrish. Alaska Airlines spokeswoman

79
Image: Gregory Bajor
80
Bobbie Egan said the carrier surveyed
passengers a few years ago and got a strong
reaction that they didnt want calls.

A Delta Air Lines spokeswoman noted that the


carrier has opposed voice calls for several years.

United Airlines said it was reviewing the


proposal and would listen to the views of
customers and employees. American referred
questions to the trade group. JetBlue did not
have an immediate comment.

81
82
TITANS OF NEW
INDUSTRY SPRING
$1 BILLION CLEAN
ENERGY FUND

Some big names with big money have jumped


into the alternative energy race.

The Breakthrough Energy Coalition, which


counts among its members Bill Gates, Mark
Zuckerberg, George Soros, Saudi Arabias Prince
Alwaleed bin Talal, Alibabas Jack Ma and Richard
Branson, announced a $1 billion investment
fund to support new energy ventures.

The new group is holding a news conference


Monday to outline its goals.

The coalition wants to magnify the speed and


scale at which promising energy breakthroughs
are introduced to the $6 trillion energy market.

83
84
In a printed statement, Gates said, Our goal is to
build companies that will help deliver the next
generation of reliable, affordable, and emissions-
free energy to the world.

The announcement comes less than a week


after President-elect Donald Trump confirmed
that he would nominate Oklahoma Attorney
General Scott Pruitt, a global warming skeptic, to
lead the Environmental Protection Agency.

Pruitt has argued that EPA rules to curb


carbon emissions drive up electricity rates,
undermine the nations power grid and create
economic havoc.

The first in a list of investment criteria released


by the coalition Monday was technologies
with the potential to reduce greenhouse gas
emissions by at least a half gigaton.

85
86
GOOGLE, CUBA
SIGN ALLOWING
FASTER ACCESS TO
COMPANYS DATA

Google and the Cuban government signed


a deal Monday allowing the internet giant to
provide faster access to its data by installing
servers on the island that will store much of the
companys most popular content.

Storing Google data in Cuba eliminates the long


distances that signals must travel from the island
through Venezuela to the nearest Google server.
More than a half century after cutting virtually
all economic ties with Cuba, the U.S. has no
direct data link to the island.

87
88
The deal announced Monday removes one
of the many obstacles to a normal internet in
Cuba, which suffers from some of the worlds
most limited and expensive access. Home
connections remain illegal for most Cubans
and the government charges the equivalent
of a months average salary for 10 hours
of access to public WiFi spots with speeds
frequently too slow to download files or watch
streaming video.

The deal does not affect Cubas antiquated


communications infrastructure or broaden
public access to the internet, but it could make
Google websites like YouTube or Gmail up to
10 times faster for users inside Cuba. Content
hosted by other companies will not be affected.

Image: Johan Jeppsson


89
90
Neither Google chairman Eric Schmidt nor
Cuban officials spoke to the press after the
signing ceremony in Havana.

Cuban officials appear to be accelerating their


approvals of deals with U.S. companies in an
attempt to build momentum behind U.S.-Cuba
normalization before President-elect Donald
Trump takes office next month. The Google pact
was announced less than a week after Cuba gave
three U.S. cruise companies permission to begin
sailing to the island next year. Officials familiar
with the negotiations say other deals, including
one with General Electric, are in the works.

The U.S. and Cuba have struck a series


of bilateral deals on issues ranging from
environmental protection to direct mail since
the declaration of detente on Dec. 17, 2014,
but business ties have failed to keep pace. The
Cuban government has blamed the U.S. trade
embargo on Cuba. Many U.S. businesses say
Cuba has been moving on most proposals so
slowly that some suspect the government has
been deliberately limiting the development of
economic ties.

The Google program could provide ammunition


for U.S. advocates of closer ties with Cuba. Both
pro-detente forces and those arguing for a
hard line on President Raul Castros single-party
government have been pushing for Cubans to
have better access to information.

If the Google deal proves to truly improve


internet access for a significant number of
Cubans, it ties information access to U.S.-Cuban
detente in a way that could prove politically
difficult to undo for anti-Castro officials in the
incoming Trump administration.

91
#01 Hill Climb Racing 2
By Fingersoft
Category: Games
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

#02 Bitmoji - Your Personal Emoji


By Bitstrips
Category: Utilities
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

#03 Messenger
By Facebook, Inc.
Category: Social Networking
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch.

#04 Instagram
By Instagram, Inc.
Category: Photo & Video
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

#05 YouTube
By Google, Inc.
Category: Photo & Video
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

#06 Snapchat
By Snapchat, Inc.
Category: Photo & Video
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

#07 8 Ball Pool


By Miniclip.com
Category: Games
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch.

#08 Facebook
By Facebook, Inc.
Category: Social Networking
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch.

#09 Houseparty - Group Video Chat


By Alexander Herzick
Category: Social Networking
Requires iOS 9.0 or later. Compatible with iPhone, iPad, and iPod touch.

#10 Google Maps - Navigation & Transit

iOS
By Google, Inc.
Category: Navigation
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

92
#01 Bear - beautiful writing app for notes and prose
By Shiny Frog di Matteo Rattotti e C. S.N.C.
Category: Productivity
Compatibility: OS X 10.10 or later, 64-bit processor

#02 Microsoft Remote Desktop


By Microsoft Corporation
Category: Business
Compatibility: OS X 10.9 or later, 64-bit processor

#03 Xcode
By Apple
Category: Developer Tools
Compatibility: OS X 10.11 or later

#04 The Unarchiver


By Microsoft Corporation
Category: Utilities
Compatibility: OS X 10.6.0 or later, 64-bit processor

#05 App for Instagram - Instant at your desktop!


By Joacim Sthl
Category: Social Networking
Compatibility: OS X 10.7 or later, 64-bit processor

#06 DesktopChat for Whatsapp


By Pixel Paws
Category: Utilities
Compatibility: OS X 10.10 or later, 64-bit processor

#07 Microsoft OneNote


By Microsoft Corporation
Category: Productivity
Compatibility: OS X 10.10 or later, 64-bit processor

#08 Dr. Cleaner: Disk,Memory,System Optimizer


By Trend Micro
Category: Utilities
Compatibility: OS X 10.10 or later, 64-bit processor

#09 Shazam
By Shazam Entertainment Ltd.
Category: Music
Compatibility: OS X 10.9 or later, 64-bit processor

#10 Fotor Photo Editor

Mac OS X
By Chengdu Everimaging Science and Technology Co., Ltd
Category: Photography
Compatibility: OS X 10.7 or later, 64-bit processor

93
#01 Minecraft: Pocket Edition
By Mojang
Category: Games / Price: $6.99
Requires iOS 8.0 or later. Compatible with iPhone, iPad, and iPod touch.

#02 Heads Up!


By Warner Bros.
Category: Games / Price: $0.99
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch.

#03 Bully: Anniversary Edition


By Rockstar Games
Category: Games / Price: $6.99
Requires iOS 9.0 or later. Compatible with iPhone, iPad, and iPod touch.

#04 Bloons TD 5
By Ninja Kiwi
Category: Games / Price: $2.99
Requires iOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch.

#05 Reigns
By Devolver Digital
Category: Games / Price: $2.99
Requires iOS 9.1 or later. Compatible with iPhone, iPad, and iPod touch.

#06 Toca Hair Salon 3


By Toca Boca AB
Category: Education / Price: $2.99
Requires iOS 7.0 or later. Compatible with iPhone, iPad, and iPod touch.

#07 MONOPOLY Game


By Electronic Arts
Category: Games / Price: $1.99
Requires iOS 5.1.1 or later. Compatible with iPhone, iPad, and iPod touch.

#08 Plague Inc.


By Toca Boca AB
Category: Games / Price: $0.99
Requires iOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch.

#09 7 Minute Workout Challenge


By Fitness Guide Inc
Category: Health & Fitness / Price: $2.99
Requires iOS 6.0 or later. Compatible with iPhone, iPad, and iPod touch.

#10 HotSchedules

iOS
By HotSchedules
Category: Business / Price: $2.99
Requires iOS 9.0 or later. Compatible with iPhone, iPad, and iPod touch.

94
#01 GarageBand
By Apple
Category: Music / Price: $4.99
Compatibility: OS X 10.10 or later

#02 Affinity Photo


By Serif Labs
Category: Photography / Price: $54.99
Compatibility: OS X 10.7 or later, 64-bit processor

#03 Logic Pro X


By Apple
Category: Music / Price: $279.99
Compatibility: OS X 10.10 or later, 64-bit processor

#04 Duplicate Photos Fixer Pro


By Systweak Software
Category: Photography / Price: $3.99
Compatibility: OS X 10.7 or later

#05 Mini Metro


By MP Digital, LLC
Category: Games / Price: $13.99
Compatibility: OS X 10.7 or later

#06 Antivirus Thor


By Amelia Dybala
Category: Utilities / Price: $13.99
Compatibility: OS X 10.7 or later, 64-bit processor

#07 Infinite Tanks


By Atypical Games
Category: Games / Price: $3.99
Compatibility: OS X 10.8 or later, 64-bit processor

#08 DaisyDisk
By Software Ambience Corp.
Category: Utilities / Price: $13.99
Compatibility: OS X 10.10 or later, 64-bit processor

#09 Final Cut Pro


By Apple
Category: Video / Price: $399.99
Compatibility: OS X 10.11.4 or later, 64-bit processor

#10 Adware Doctor

Mac OS X
By YONGMING ZHANG
Category: Utilities / Price: $13.99
Compatibility: OS X 10.10 or later, 64-bit processor

95
Trailer

by Tim Burton
Genre: Sci-Fi & Fantasy
Released: 2016
Price: $14.99

115 Ratings

Movies
&TV Shows
Rotten Tomatoes

63 %
96
Miss Peregrines
Home for
Peculiar Children

When Jake stumbles upon a mystery that


takes him through different alternate
realities, he finds an academy full of
magical children.

FIVE FACTS:
1. In the 2011 Ransom Riggs novel on which
the film is based, Dr Golan is a man, but the
movie changes him to a woman, played by
Allison Janney.
2. Samuel L. Jackson plays the character Mr
Barron, who didnt appear in the book. Riggs
was initially skeptical about the changes, but
ultimately loved the finished product.
3. The soundtrack features the song Wish
That You Were Here by Florence + The
Machine, which was especially created for
the movie.
4. Director Tim Burton wanted to use as few
digital effects as possible.
5. Eagle-eyed viewers might even be able
to spot Burton in the movie, on one of the
amusement park rides.

97
A Peculiar Loop

98
99
Little Men

This touching movie charts the story of two


boys who vow an oath of silence against
their parents after a feud is sparked over the
price of rent.

FIVE FACTS:
1. The vow of silence was inspired by movies
like Good Morning (1959) and I was Born,
But (1932W).
2. When Michael Barbieri was cast as Tony,
the character was changed to an aspiring
actor having previously been intended to
be practicing capoeira.
3. The acting teacher in Little Men is played by Ira Sachs
by Mauricio Bustamante, who was actually Genre: Drama
Barbieris acting teacher at the Lee Strasberg Released: 2016
Price: $14.99
Theatre and Film Institute.
4. This was Barbieris feature debut. Before
Little Men, he was heading to LaGuardia
High School, into which he was accepted
after the movies debut.
5. Barbieri is already taking off as an actor,
having secured a part in the upcoming
Spider-Man: Homecoming.

Trailer

100
Rotten Tomatoes

98 %
101
102
You Did it Again

103
Genre: Hip-Hop, Rap
Released: Dec 16, 2016
19 Songs
Price: $13.99

246 Ratings

Surfin

104
Music
Passion, Pain and
Demon Slayin
Kid Cudi

The Cleveland, Ohio native returns with his


sixth studio album, bringing more of his
distinct alternative hip-hop and bringing along
amazing features like Pharrell Williams, Willow
Smith and Andre 3000.

FIVE FACTS:
1. Kid Cudis real name is Scott Ramon
Seguro Mescudi.
2. Cudis rap career was inspired by the work
of A Tribe Called Quest and The Pharcyde.
3. Drake wanted to remix Cudis 2007 hit
Day n Nite, before either of them were
big names.
4. Cudi was originally signed to Kanye Wests
GOOD Music label, the pair having met at
a BAPE (A Bathing Ape) store in New York,
where Cudi worked and Kanye bought a
jacket, from which Cudi forgot to remove the
security tag.
5. Cudis Man on the Moon album was partly
inspired by the late absurdist comedian
Andy Kaufman.

105
106
Frequency

107
Filthy America
Its Beautiful
The Lox

The Yonkers hip-hop groups third album is


also the first they have made for 16 years, and
is being released on their new record label,
Roc Nation.

FIVE FACTS:
1. The word LOX is an acronym for the
phrase Living Off eXperience.
2. The LOX have been involved in many
noteworthy collaborations over the years
with other rap groups, most notably
the album Wu Block, released by The
LOXs Sheek Louch and Wu-Tang Clans
Ghostface Killah.
3. One of the LOX crew, Jadakiss, has been
embroiled in controversy in the past involving
political commentator Bill OReilly. Jadakisss
lyrics in the song Why? suggest former
President George W. Bush coordinated the
9/11 attacks, and OReilly believed that Bush
should sue him for slander.
4. The LOX broke a 13-year period of hiatus
when an EP unexpectedly dropped in 2013,
signalling the groups reformation.
5. This is only the groups third album over
an 18-year period. Its last studio album, We
Are The Streets, was released in 2000.

108
Genre: Hip-Hop, Rap
Released: Dec 16, 2016
12 Songs
Price: $9.99

37 Ratings

Dont You Cry

109
110
What Else I Need To Know

111
112
BOX OFFICE TOP 20:
MOANA

Moana held on to its first place spot for the


third weekend in a row with $18.5 million,
bringing its domestic total to $144.7 million. It
beat out newcomer Office Christmas Party, a
comedy starring Jason Bateman and Jennifer
Aniston, which earned $16.9 million.

Holdovers populated the rest of the top five,


with Warner Bros. Harry Potter spinoff Fantastic
Beasts and Where To Find Them, which placed
third with $10.4 million, the Amy Adams sci-fi
movie Arrival, in fourth, with $5.6 million, and
Doctor Strange in fifth with $4.5 million.

In limited release, the Los Angeles musical La


La Land, which earned the most Golden Globe
nominations Monday morning, opened in five
theaters with a powerful $881,004.

113
114
The relatively sleepy weekend, however, is a
calm before the Star Wars spinoff Rogue One: A
Star Wars Story opens on Dec. 16.

The top 20 movies at U.S. and Canadian theaters


Friday through Sunday, followed by distribution
studio, gross, number of theater locations,
average receipts per location, total gross and
number of weeks in release, as compiled
Monday by comScore:

1. Moana, Disney, $18,533,804,


3,875 locations, $4,783 average,
$144,700,397, 3 weeks.

2. Office Christmas Party, Paramount,


$16,890,204, 3,210 locations,
$5,262 average, $16,890,204, 1 week.

3. Fantastic Beasts And Where To Find


Them, Warner Bros., $10,421,251,
3,626 locations, $2,874 average,
$198,947,154, 4 weeks.

4. Arrival, Paramount, $5,587,109,


3,115 locations, $1,794 average,
$81,438,817, 5 weeks.

5. Doctor Strange, Disney, $4,535,827,


2,763 locations, $1,642 average,
$222,267,273, 6 weeks.

115
6. Allied, Paramount, $3,955,705,
3,018 locations, $1,311 average,
$35,589,157, 3 weeks.

7. Nocturnal Animals, Focus Features,


$3,161,381, 1,262 locations,
$2,505 average, $6,187,509, 4 weeks.

8. Manchester By The Sea, Roadside


Attractions, $3,131,588, 366 locations,
$8,556 average, $8,301,789, 4 weeks.

9. Trolls, 20th Century Fox, $3,020,165,


2,786 locations, $1,084 average,
$145,400,169, 6 weeks.

10. Hacksaw Ridge, Lionsgate,


$2,288,401, 2,277 locations,
$1,005 average, $60,850,849, 6 weeks.

116
117
118
11. Miss Sloane, EuropaCorp,
$1,844,972, 1,648 locations,
$1,120 average, $1,983,337, 3 weeks.

12. Almost Christmas, Universal,


$1,377,095, 1,258 locations,
$1,095 average, $40,213,580, 5 weeks.

13. Bad Santa 2, Broad Green Pictures,


$1,236,113, 2,034 locations,
$608 average, $16,800,881, 3 weeks.

14. Incarnate, High Top Releasing,


$1,078,173, 1,737 locations,
$621 average, $4,220,311, 2 weeks.

15. MET Opera: LAmour de


Loin (2016), Fathom Events,
$1,030,000, 900 locations, $1,144 average,
$1,030,000, 1 week.

119
120
16. La La Land, Lionsgate, $881,104,
5 locations, $176,221 average,
$881,104, 1 week.

17. Loving, Focus Features, $633,993,


572 locations, $1,108 average,
$6,576,255, 6 weeks.

18. The Edge Of Seventeen,


STX Entertainment, $616,919,
932 locations, $662 average,
$13,876,616, 4 weeks.

19. Moonlight, A24, $543,585,


449 locations, $1,211 average,
$10,758,335, 8 weeks.

20. Jackie, Fox Searchlight, $492,255,


26 locations, $18,933 average,
$857,080, 2 weeks.

Universal and Focus are owned by NBC Universal, a unit of Comcast


Corp.; Sony, Columbia, Sony Screen Gems and Sony Pictures Classics
are units of Sony Corp.; Paramount is owned by Viacom Inc.; Disney,
Pixar and Marvel are owned by The Walt Disney Co.; Miramax is owned
by Filmyard Holdings LLC; 20th Century Fox and Fox Searchlight are
owned by 21st Century Fox; Warner Bros. and New Line are units
of Time Warner Inc.; MGM is owned by a group of former creditors
including Highland Capital, Anchorage Advisors and Carl Icahn;
Lionsgate is owned by Lions Gate Entertainment Corp.; IFC is owned by
AMC Networks Inc.; Rogue is owned by Relativity Media LLC.

121
122
SNAPCHAT:
HOW THE
VANISHING-PHOTO
APP MANAGED
NOT TO FADE

Snapchat has managed to build something lasting


out of photos that vanished almost instantly.

The fast-growing social network for millennials


has come a long way since its founder Evan
Spiegel dropped out of Stanford University in
2012, three classes shy of graduation. His goal at
the time was to create a snappy way for people to
send photos, videos and messages - all of which
would disappear just 10 seconds after viewing.

Snapchat cut a sharp contrast to Facebook


and other social networks, which encouraged
people to share and share often - even those
spontaneous moments they might come to
regret the next morning or at the next job
interview. Snapchat, by contrast, let people
show and share things that they do not want to
last on the internet as a permanent record, said
Ira Kalb, a marketing and branding professor at
the University of Southern California.

That feature, however, quickly associated the


company with sexting, the sharing of sexually

123
explicit photos through cellphone messaging.
Had Snapchat done nothing else, it might well
have faded quickly itself, as such fads often do.

Instead, Snapchat showed a knack for


evolving as its users did. Its now a full-featured
messaging service popular with millennials and
big brands alike. It even rebranded as Snap Inc.
and now calls itself a camera company.

Now its hoping to make itself into a big winner


on Wall Street as well. According to news
reports, Snap is readying for a public stock
offering that could value the company at $20
billion to $25 billion. Snap declined to comment.

REFUSING TO DISAPPEAR
The company has worked hard to roll out new
features so users dont get bored.

Stories allows individuals and brands to


create a narrative from messages, videos and
photos from the past 24 hours. Its so popular
that Facebooks Instagram now has a version of
it, and Instagram just rolled out disappearing
photos, too. A Discover section serves as a
wide-ranging news section, featuring material
tailored for millennials by a select group of
publishers. Lenses lets people add different
animated overlays to photos and videos; the
feature has proven to be popular both with
young adults and advertisers.

Snapchat has steadily introduced new features


... and in terms of user engagement it seems like
users are spending quite a bit of time in each,
said eMarketer analyst Catherine Boyle.

Amanda Peters, 22, a dance instructor in Fairfax,


Virginia, wasnt sure how much she would use

124
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Snapchat when she got it as a college freshman in
2012. But shes grown to like it more with Lenses.

I like the goofy filters, she said. Theyre always


changing them up, which is nice. Every day you
can go to see whats new.

Snaps ad revenue has jumped from $59 million


in 2015 to nearly $367 million in 2016, according
to eMarketer. Its on pace to have more monthly
active users than Twitter - which counts 317
million - by the end of the year. Of course, that
is still dwarfed by Facebook, with 1.79 billion
monthly active users as of Sept. 30.

LEARNING TO GROW
But while Snap is popular with the coveted 18-
to 34-year old audience, it will eventually have to
broaden its appeal to grow.

Its a great base to start with, (but) ultimately


they need to become a little bit broader in terms
of appeal to users in order to become broader in
terms of appeal to advertisers, Gartner analyst
Brian Blau said.

Twitter went public in 2013 to high acclaim, but


it hasnt succeeded in growing its membership
at the rate investors want. It recently laid off
9 percent of its workforce. As part of belt
tightening, Twitter also killed its Vine video app,
which was wildly popular with teens but didnt
have a reliable way to make revenue.

Its clearly a fate Snap - with a similar youthful


audience - wants to avoid.

NOW YOU SEE THEM, NOW YOU DONT


For now, though, Snap is managing to remain
hip and even has an unconventional distribution

126
127
strategy for Spectacles , $130 sunglasses that
take video for sharing on Snapchat. You cant
just order one online - yet. Rather, they have
to find a vending machine or temporary store
popping up with just 24 hours notice. So far,
vending machines have showed up near the
companys headquarters in the Venice Beach
section of Los Angeles, as well as in Big Sur,
California, and New York.

Lines in New York stretched for hours when the


machines first appeared.

Geoff Golberg, who works in marketing in


New York, waited three hours in line. An active
livestreamer, he livestreamed himself on
Periscope as he bought the Spectacles.

It was a spectacle, Golberg said in a phone


interview. Inside everyone is taking video,
posting content to Instagram and taking Snaps.
They created so much buzz around this product
by limiting supplies.

Even so, Blau said Spectacles are a niche product


that likely wont be a major growth driver. And
Snap needs growth - as well as even more ways
to evolve to keep its existing users engaged.

Savannah Russell, 16, a student in Minneapolis,


is a devoted Snapchat user, building up streaks
of daily Snaps with her friends. She said that
without Snapchat, she would show up to school
on Monday and be very out of the loop.

But she said she doesnt know how long shell


stick with it.

The happiness comes from being able to


interact with my friends (not the app), she said.
If something that comes up thats better I could
see myself switching to that.

128
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130
6 WAYS TO KEEP
PHONE CHARGES
LOW DURING
INTERNATIONAL
TRAVEL

Its a sure-fire way to dampen the holiday cheers:


Spend a week on a dream vacation abroad, then
come back to find an additional several hundred
dollars on your cellphone bill.

Although some U.S. phone plans cover


international travel, especially to Canada and
Mexico, many dont. Leaving your phone off isnt
practical these days . But you dont have to pay
a fortune if you follow these tips. You might find
some of these steps annoying, but theyre surely
less painful than an unexpected data bill. Start
planning well before you leave.

GET A PLAN ABROAD


This is the most economical choice, but also
the least practical for many people. With the
exception of Verizon, carriers typically block your
phone from other carriers plans until youve
paid off the hardware, typically after two years.
They might make a temporary exception if

131
youre traveling, but its on you to get that set up.
You might have an old phone to use instead, or
you can rent or buy a cheap one for your trip.

This route gives you a lot of data at competitive


prices. Upon arrival in Bangkok, for instance, I got
2.5 gigabytes of data for just less than $13. Two
more gigabytes would have cost just $3 more.

Just visit a kiosk at the airport when you arrive,


or stop by a cellphone or convenience store in
town. Youll be assigned a phone number for
that country, though, so friends and family will
need that to call or text. But Facebook, email
accounts and messaging services such as Apples
Facetime should work just as they do in the U.S.

If youre visiting multiple countries, youll need a


separate local plan for each.

STEP UP YOUR U.S. PLAN


Check with your carrier on an international
package. For instance, Verizon offers 100
megabytes of data for $25. Ten minutes of
streaming video can wipe that out. But itll get
you email and basic messaging, and its much
cheaper than the $205 Verizon would charge for
100 megabytes without an international plan.
You keep your U.S. number.

You might find this adequate for emergencies,


such as when you need directions back to the
hotel. Use your hotels Wi-Fi as much as possible;

132
your Instagram pictures can wait, especially
if your friends are asleep anyway. For a two-
week trip to Italy, I had plenty of data left after
taking additional data-saving measures. Verizon
even refunded me nearly $16. But I got socked
with another $25 because I wasnt careful on a
separate trip to Barcelona, Spain.

This option is good for multi-country trips. You


can still get a local plan for the country where
youll spend the most time.

LEAVE CELLULAR DATA OFF MOST OF


THE TIME
Turn off Cellular Data under the Cellular
settings on iPhones, or Mobile data on Android
(the location in the settings varies by device).
In Italy, I turned cellular back on for the brief
times I needed it. You can go further by enabling
airplane mode, but that also blocks incoming
calls and texts, as well as Wi-Fi and Bluetooth.

LIMIT DATA USE


Even if you have cellular on just briefly, tons
of data-hungry messages could still flood in
while the gate is open. To prevent that, you can
prevent apps from using cellular data at all.

On iPhones, go to Cellular in the settings,


then turn off as many items as possible in the
list of apps. Also turn off Wi-Fi Assist. In Italy,

133
I turned off all apps. When I needed to check
or send Gmail, I just turned that app back on
temporarily. Otherwise, the phone waited until
I got back to the hotels Wi-Fi. Notifications still
came through, but they dont use much data.

On most version of Android, turn on Restrict


background data to blocks apps from using
cellular data while running in the background.
To let certain apps override that, you need Data
saver on the latest version of Android, Nougat,
which isnt yet available on most phones.

While youre at it, disable automatic video play


on Facebooks app. Tap the three horizontal
bars. On iPhones, choose Settings, then
Account Settings, then Videos and Photos.
For Autoplay, choose Wi-Fi only or never. On
Android, check under App settings.

And be sure to disable automatic app updates


over cellular. It might already be set to Wi-Fi only,
but double check in the iTunes & App Stores
settings on iPhones and the Play Store settings
on Android.

DOWNLOAD BEFORE YOU GO


Get and set up apps for museums and other
places youre visiting before you leave home or
the hotel. Using the apps will consume data, but
not as much as starting from scratch.

Likewise, download map data for Google Maps


ahead of time. You can get driving directions
and basic information on businesses without a
data connection. The offline mode isnt meant
for walking directions, though what I got for
driving was often close enough (The exception
was Venice, where cars are banned). Also, theres
no offline transit support, but I got transit

134
135
136
directions by enabling cellular briefly and used
offline mode to get to my stops. Otherwise,
Google Maps alone would have eaten up my
100 megabytes with Verizon.

You can also download any video youve


bought or rented through iTunes, Amazon or
Google Play. Amazons Prime members can
also download up to 25 of the videos available
for free streaming. Netflix recently updated
its app to offer similar downloads for offline
viewing. Youll want to do this before leaving
home, even if you plan to use Wi-Fi, as streaming
rights for many titles dont extend outside the
U.S. A service called PlayOn Cloud also lets you
download video from various services for 99
cents each (iPhones only).

TRACK YOUR USAGE


Check the settings regularly to see how much
data youre using and adjust accordingly. On
iPhones, check Current Period Roaming in the
Cellular settings. Hit Reset Statistics at the
start of your trip. On Android, check Data usage.
Android also keeps track of which apps use how
much data, so you can identify culprits more
easily. These are estimates, though, and your
phone company might measure differently.

137
138
MICHIGAN LETS
AUTONOMOUS
CARS ON
ROADS WITHOUT
HUMAN DRIVER

Companies can now test self-driving cars on


Michigan public roads without a driver or
steering wheel under new laws that could
push the state to the forefront of autonomous
vehicle development.

The package of bills signed into law comes with


few specific state regulations and leaves many
decisions up to automakers and companies like
Google and Uber.

It also allows automakers and tech companies to


run autonomous taxi services and permits test
parades of self-driving tractor-trailers as long as
humans are in each truck. And they allow the sale
of self-driving vehicles to the public once they are
tested and certified, according to the state.

The bills allow testing without burdensome


regulations so the industry can move forward
with potential life-saving technology, said Gov.
Rick Snyder, who was to sign the bills. It makes
Michigan a place where particularly for the auto
industry its a good place to do work, he said.

139
Image: Angelo Merendino
140
The bills give Michigan the potential to be a
leader by giving the companies more autonomy
than say, California, which now requires human
backup drivers in case something goes awry.

Here are answers to some questions about


the laws:

Q: Companies are making a lot of the decisions


in putting the cars on public roads. Why does
the state think theyll be safe?

A: Michigan Transportation Director Kirk Steudle


says the laws put Michigan ahead of most
other states with the possible exception of
Florida in specifically allowing tests without a
human driver. Companies, he said, will make the
decision as to when the cars are ready for that,
based on more than a century of experience
of testing cars on public roads. Automakers
have a long history of testing cars on public
roads in Michigan with few, if any, incidents,
Steudle says. The cars also have to comply with
federal safety standards and may have to be
certified as roadworthy by the National Highway
Traffic Safety Administration if proposed
federal guidelines are adopted. I dont want to
regulate the vehicles. There is nobody in state
government that has any knowledge to be able
to say that vehicle is ready to go on the road,
Steudle said. If the vehicles crash, Steudle says
they would be governed by Michigans no-
fault insurance laws that require each drivers
insurance to pay for damage. The companies
also could be sued under product liability laws,
he says. The self-driving laws also allow only
reputable companies such as automakers and
tech companies to do tests, Steudle says. These
are responsible parties, says Snyder.

141
Q: Does this put the state ahead in allowing self-
driving vehicles on public roads?

A: Michigan Transportation Director Kirk


Steudle says the laws put Michigan ahead of
most other states with the possible exception
of Florida in specifically allowing tests without
a human driver. Companies, he said, will make
the decision as to when the cars are ready
for that, based on more than a century of
experience of testing cars on public roads.
Steudle says yes because the laws specifically
authorize use without human drivers. He also
says Michigan has an advantage over Florida
and warm-weather states because companies
can test in snow. But Bryant Walker Smith, a law
professor at the University of South Carolina
who tracks the technology, says Florida has
almost no restrictions. Other states, he said,
dont expressly prohibit such testing and have
agreements with individual companies to do
it. Michigans laws also make defining who is
a driver ambiguous, he said. Drivers could be
companies running autonomous taxi services,
engineers who start autonomous vehicles,
passengers who ride in the cars and the
automated systems themselves, he said.

142
Image: Sara J. Martin

143
Q: Unlike California, Michigan isnt tracking
autonomous car crashes. How will the state
spot problems?

A: Police will investigate any crashes and


presumably would report any trends to the
state, which could suspend a companys
manufacturer license plates and end the tests,
Steudle says. He concedes that there will
be crashes and probably a fatality involving
autonomous cars. But the technology can
eliminate human errors that cause 94 percent of
crashes and cut the 100 highway deaths in the
U.S. every day, he said. Its a risk worth taking
because the future of the technologies we know
are going to help reduce those crashes and
reduce those fatalities, Steudle said.

144
145
146
I SURRENDER (THE VOICE PERFORMANCE)
Billy Gilman

LOVE CAN BUILD A BRIDGE


(THE VOICE PERFORMANCE)
Sundance Head

BAD THINGS
macHine Gun Kelly & camila caBello

24K MAGIC
Bruno marS

MILLION REASONS
lady GaGa

TO WORSHIP YOU I LIVE (AWAY)


[THE VOICE PERFORMANCE]
cHriStian cuevaS

DANNYS SONG (THE VOICE PERFORMANCE)


JoSH GallaGHer

DONT WANNA KNOW


(FEAT. KENDRICK LAMAR)
maroon 5

ANGEL (THE VOICE PERFORMANCE)


Brendan FletcHer

SCARS TO YOUR BEAUTIFUL


(THE VOICE PERFORMANCE)
W mcdonald

147
148
A PENTATONIX CHRISTMAS
Pentatonix

BLUE & LONESOME


tHe rollinG StoneS

PERFECTLY IMPERFECT - EP
Jordan SmitH

24K MAGIC
Bruno marS

TIS THE SEASON


Jordan SmitH

MOANA (ORIGINAL MOTION PICTURE


SOUNDTRACK) [DELUXE EDITION]
variouS artiStS

CHRISTMAS
micHael BuBl

KANE BROWN
Kane BroWn

THE ESSENTIAL NOW THATS


WHAT I CALL CHRISTMAS
variouS artiStS

THATS CHRISTMAS TO ME
Pentatonix

149
150
HALLELUJAH
Pentatonix

24K MAGIC
Bruno marS

DUST MY SHOULDERS OFF


Jane ZHanG

FOREVER COUNTRY
artiStS oF tHen, noW & Forever

MARY, DID YOU KNOW?


Pentatonix

BAD THINGS
macHine Gun Kelly & camila caBello

CANT STOP THE FEELING!


JuStin timBerlaKe

CLOSER (FEAT. HALSEY)


tHe cHainSmoKerS

CHANTAJE (FEAT. MALUMA)


SHaKira

MISTLETOE
JuStin BieBer

151
152
HEARTS STILL BEATING
tHe WalKinG dead, SeaSon 7

PRIDE
vanderPumP ruleS, SeaSon 5

SNAP BACK
madam Secretary, SeaSon 3

SING ME A SONG
tHe WalKinG dead, SeaSon 7

PASSING THROUGH NATURE TO ETERNITY


tHe royalS, SeaSon 3

THE CAPTURE OF BENEDICT ARNOLD


timeleSS, SeaSon 1

THIS IS THE PITS


ScorPion, SeaSon 3

TASTES LIKE TROUBLE


tHe real HouSeWiveS oF atlanta, SeaSon 9

IT SERVES YOU RIGHT TO SUFFER


elementary, SeaSon 5

THE BLUEPRINT
deSiGnated Survivor, SeaSon 1

153
154
ISLAND OF GLASS
nora roBertS

THE UNDOING PROJECT:


A FRIENDSHIP THAT CHANGED OUR MINDS
micHael leWiS

TOM CLANCY TRUE FAITH AND ALLEGIANCE


marK Greaney

BLOOD VOW
J.r. Ward

TOOLS OF TITANS
timotHy FerriSS & arnold ScHWarZeneGGer

BABYLONS ASHES
JameS S. a. corey

NO MANS LAND
david Baldacci

WOMANIZER
Katy evanS

MRS. HEMINGWAY
naomi Wood

SOMEONE LIKE YOU


lauren layne

155
156
NASA
TROUBLESHOOTING
DRILL PROBLEM
ON MARS
CURIOSITY ROVER

Engineers are troubleshooting a snag on NASAs


Curiosity thats preventing the rover from
moving its robotic arm and driving to another
spot on Mars, the space agency said Tuesday.

The problem involves a motor in the rovers


drill that is used to bore into rocks. Curiosity has
been taking pictures and tracking the weather,
but doing little else for the past two weeks.

Were keeping busy with using the other


instruments on the rover while they do these
tests, said Ashwin Vasavada, project scientist
at the NASA Jet Propulsion Laboratory, which
manages the mission.

157
The team gave a health update on Curiosity
while discussing research findings at the
American Geophysical Union meeting in
San Francisco.

Since landing in Mars Gale Crater in 2012,


Curiosity has uncovered geologic evidence
of an ancient environment that could have
supported primitive life early in the red
planets history.

It clocked nine miles (15 kilometers) since


landing, arriving two years ago at its main target
- a Martian mountain dubbed Mount Sharp -
where it plans to climb to higher and younger
rock formations.

Before the snag, the six-wheel rover found


more evidence of a watery history on the
slopes of Mount Sharp including the presence
of certain chemicals that suggests a warmer
and wetter past unlike the current frigid,
harsh environment.

As NASA diagnosed Curiosity, the long-lived


Opportunity rover has been surveying the
rim of a huge crater near the Martian equator.
Opportunity landed on Mars in 2004 and has
outlasted its twin, Spirit, which lost contact after
seven years of exploration.

Mars was supposed to get another visitor this


year, but a European Space Agency spacecraft
crashed while trying to land in October.
The mission was not all lost: A companion
spacecraft successfully slipped into orbit
around Mars, joining five others currently
circling overhead.

158
159
160
FOSSIL FUEL MEETS
RENEWABLES:
VERMONT
GAS STATION
GOES SOLAR

The Pump & Pantry looked unremarkable -


a gas station, grocery and deli along the
main road through the rural Vermont
town of Williamstown.

But now the independent business is a meeting


place of fossil fuels and renewable energy. Its a
gas station thats gone solar.

Owner Sam Adams - not to be confused with


the beer he sells - says he expects the $100,000
investment hes made in a 200-panel, 70-kilowatt
installation will have a payback period of about
six years.

After that, he expects the panels installed by the


Vermont-based solar company SunCommon
will bring big savings on an electric bill to run
his refrigerators thats been running $3,000 to
$4,000 a month.

161
People probably think its odd for a gas station Im willing to go green, but Ive got to save
to claim to be environmentally friendly, Adams some green in the process, Adams said. Going
said. We went solar because we have a duty solar is an act of environmentalism thats good
to do what we can to be responsible stewards for my bottom line.
of the environment. Gasoline is a necessity of He said hes also hoping it will be a draw for
life here in rural Vermont; we accept that. But customers, particularly those interested in
it doesnt mean we cant do what we can to be environmental issues like fighting climate change.
more energy and fuel-efficient.
People have noticed the array and commented
Adams said he began considering solar panels that its a good thing to do, he said. Were proud
about three years ago. A combination of falling of that. Maybe our solar array will encourage
prices for the panels and state and federal tax folks to stop in and shop with us.
credits made now the right time, he said.

162
163
164
CHRISTMAS DELIVERY
AT SPACE STATION,
COURTESY OF JAPAN

165
166
Christmas gifts arrived at the International Space
Station on Tuesday, courtesy of Japan.

A Japanese cargo ship pulled up at the orbiting


lab four days after launching. The capsule -
called Kounotori, or white stork - contains
nearly 5 tons of food, water, batteries and other
supplies. NASA said there also are Christmas
presents for the two Americans, three Russians
and one Frenchman on board.

Commander Shane Kimbrough, an American,


and Frances Thomas Pesquet used the robot
arm to grab the capsule 250 miles above
Chile. Flight controllers in Japan and Houston
applauded - and some of the Japanese
even bowed.

Kimbrough said the crew was really excited to


accept delivery and radioed thanks to all.

The vehicle is beautiful, and it performed


flawlessly, he said.

Barely two weeks ago, a Russian supply ship


was destroyed shortly after liftoff. At the same
time, one of NASAs main suppliers, SpaceX,
is grounded. So the Japanese delivery is
especially welcome.

The astronauts need the six new lithium-ion


batteries for next months spacewalks. They
will replace the old nickel-hydrogen batteries
that store energy generated by the stations big
solar panels.

Online:
NASA

167
168
CIVIL RIGHTS GROUPS
OPPOSE BOSTON PLAN
TO COMB SOCIAL MEDIA

Several civil-rights groups are urging the city of


Boston to withdraw a proposal to spend $1.4
million on high-tech software that would comb
social media for criminal activity.

The American Civil Liberties Union of


Massachusetts and 20 other groups sent a letter
to Mayor Marty Walsh and Police Commissioner
William Evans on Tuesday saying theyre
concerned the software would be used to target
people of color. The groups say the money
would be better spent on other safety programs.

The mayors office deferred questions to the


police department. Boston police Lt. Mike
McCarthy said the department is still in the review
process and no decisions have been made.

Evans has previously said that people of


color would not be targeted and that the
software could help prevent neighborhood
violence and terrorism.

169
170
GOOGLES
SELF-DRIVING CAR
PROJECT GETS
A NEW NAME:
WAYMO

The self-driving car project that Google started


seven years ago has grown into a company
called Waymo, signaling its confidence that it
will be able to bring robot-controlled vehicles to
the masses within the next few years.

We are getting close and we are getting ready,


Waymo CEO John Krafcik said Tuesday after
unveiling the companys identity.

To underscore his point, Krafcik revealed the


project had hit a key milestone in the journey to
having fully autonomous cars cruising around
public roads. In a trip taken in October 2015 , a
pod-like car with no steering wheel and brake
pads drove a legally blind passenger around
neighborhoods in Austin, Texas without another
human in the vehicle. It marked the first time
one of the projects cars had given a passenger a
ride without a human on hand to take control of
a self-driving car if something went wrong.

171
Krafcik called that trip taken by Steve Mahan,
former director of the Santa Clara Valley Blind
Center, an inflection point in the development
of self-driving cars. It came a year before a
Budweiser beer truck equipped with self-driving
technology owned by ride-hailing service Uber
completed a 120-mile trip through Colorado
while being steered by a robot while a human
sat in the back of trailer.

In doing so, Krafcik and other supporters of


self-driving cars believe the technology will
drastically reduce the number of deaths on the
roads each year because they contend robots
dont get distracted or drunk, nor ignore the
rules of the road, like humans do.

While Googles self-driving cars were still in the


research-and-development stage, its leaders
indicated the vehicles would be commonplace
by 2020. Krafcik declined to update the
timetable Tuesday, saying only that we are close
to bringing this to a lot of people.

Waymos transition from what once was viewed


as a longshot experiment to a full-fledged
company marks another step in an effort to
revolutionize the way people get around.

Instead of driving themselves and having to find


a place to park, people will be chauffeured in
robot-controlled vehicles if Waymo, automakers
and Uber realize their vision within the next few
years. Waymos name is meant to be shorthand
for a new way forward in mobility.

The newly minted company will operate within


Googles parent company, Alphabet, which was
created last year to oversee far-flung projects
that have nothing to do with Googles main
business of online search and advertising.

172
173
174
Those projects, which Alphabet CEO Larry Page
likens to moonshots, have lost $8 billion since
2014, with the research into self-driving cars
accounting for a significant chunk of that amount.

Google began working on its self-driving


technology in 2009 in a secretive lab called
X run by company co-founder Sergey Brin.
Since then, its fleet of cars has covered more
than 2.3 million miles in the San Francisco Bay
Area, Austin, Arizona and Washington state. In
their travels, the self-driving vehicles have been
involved in 35 traffic accidents. Google has said
its self-driving vehicles were at fault in only one
collision with a bus earlier this year.

The self-driving project had been expected to


be spun out of the X lab since Krafcik, a former
Hyundai USA executive, was hired as its CEO 15
months ago.

As its own company, Waymo will now face more


pressure to generate a profit under Alphabets
management instead of simply focusing on
research. Rather than make its own cars, Waymo
intends to license its technology to traditional
automakers and trucking companies.

175
176
We are not in the business of making better
cars, Krafcik said. We are in the business of
making better drivers.

Earlier this year, Waymos precursor licensed


its self-driving technology to Fiat Chrysler
for 100 Pacifica minivans currently in
production. Financial terms of that deal havent
been disclosed.

The pressure to make money risks alienating


some of the engineers who worked on the
self-driving cars as a project that didnt have a
mandate to turn a profit. As it headed down the
road to becoming Waymo, several key players
quit the project. The defectors included its
former director, Chris Urmson, and a co-founder
Anthony Levandowski, who is now working on
self-driving technology for Uber.

177
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