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Tacloban airport closed for runway repairs

THE CIVIL Aviation Authority of the Philippines (CAAP) announced yesterday afternoon the temporary closure of the Daniel Z. Romualdez Airport in Tacloban City for emergency repairs due to the “degradation of runway surface caused by continuous rain in the past weeks.” CAAP issued a Notice to Airmen on the airport’s closure starting 5:30 p.m on Jan. 17, to 9 p.m. today. Cebu Pacific, in a separate statement, said six flights, including those of Cebgo, to and from the Tacloban airport were cancelled and those scheduled today are also expected to be affected.

Ex-US Navy officers face negligent homicide charges over ship collisions

WASHINGTON — The commanding officers of two US Navy destroyers involved in deadly collisions last year in the Pacific Ocean face courts-martial and military criminal charges including negligent homicide, the US Navy said in a statement on Tuesday.

Filing charges against the officers marks the Navy’s latest effort to address the problems that led to collisions involving its warships in Asia, in which 17 sailors were killed. The Navy has already dismissed several senior officers, including the commander of the Seventh Fleet, as a result of the collisions.

Evidence supporting the charges against the commanders and several lower-ranking officers who served on the ships will be reviewed soon in investigative hearings, according to the Navy’s statement. “The announcement of an Article 32 hearing and referral to a court-martial is not intended to and does not reflect a determination of guilt or innocence related to any offenses,” the statement added.

The commanding officer of the USS John S. McCain guided missile destroyer, which collided with a merchant ship near Singapore in August, faces charges of dereliction of duty, hazarding a vessel and negligent homicide, the statement said.

The commanding officer and three other officers on the USS Fitzgerald guided missile destroyer, which collided with a Philippine container ship in June, face charges including dereliction of duty, hazarding a vessel and negligent homicide, the Navy said.

Results from Navy investigations released in November found that both accidents were the result of human error by sailors aboard the ships, but determined that no single person could be blamed for the accidents. Beyond the courts-martial, the Navy is conducting additional administrative actions for members of both crews, including non-judicial punishment for four crew members of each vessel, according to the Navy statement. — Reuters

Why Facebook’s new move is not going to last

By Shira Ovide

It’s easy to imagine that powerful technology companies are all-knowing geniuses. Often, though, technology superpowers are merely a collection of mortals making best guesses in response to external threats or backlash. And when that doesn’t work, they try something else.

That’s a useful framing to understand the shake-up Facebook, Inc. disclosed last week. The company is trying to change behavior so people engage in less aimless scrolling through their streams of posts and more meaningful interaction. Only time will tell whether Facebook’s changes will achieve the company’s goals and whether its goals are worth pursuing.

But it’s already clear that Facebook is rebooting itself because those who run the company are deeply worried. Yes, they’re worried about damaging people who are wallowing in a Facebook cesspool. But they’re also worried about potentially lasting damaging to the franchise after more than a year of headlines about Facebook’s use as a tool for uncivil conduct or worse, attempted voter manipulation and entrenching despots.

This all hews to Facebook’s pattern of changing its priorities — and taking its users and partners along for the ride — when it’s under pressure. And then it dumps those priorities when the heat fades, when the changes do more harm than good or when other external threats become more dominant.

If you don’t believe me, take a trip into Facebook history. The company started out as a digital meeting place for friends, family and acquaintances, but that began to change a few years ago in response to the threat from Twitter, Inc. I know, that seems hard to imagine.

But Twitter was scary because everything there could be seen by the world in real time. That helped it become the place where politicians posted videos announcing their candidacy, where fans trash-talked a football team live during the Super Bowl and where people got an up close look at world events such as the Arab Spring protests.

So a few years ago, Facebook rewrote its own rule book to amp up the volume of these in-the-moment activities and other “public content” — posts and video from politicians, celebrities, news organizations and other groups. It encouraged public figures to use Facebook, especially for Web videos, and the company’s computer systems prioritized their messages above those of friends and family. Facebook allowed social network posts to be inserted into other Web sites to encourage messages to spread more widely.

Facebook changed into a mix of baby photos, news, gossip and viral videos. Facebook celebrated when the Ice Bucket Challenge, a stunt for charity, spread like wildfire in the summer of 2014. It was a sign that Facebook was no longer completely ceding real-time and public conversation to Twitter.

And then came the backlash. It turned out the Ice Bucket Challenge was inescapable on Facebook, and big news happening at the same time — notably the civil rights protests in Ferguson, Missouri — was far less visible. What did Facebook do? It corrected its priorities.

The company reordered the stream of posts to emphasize “timeliness” — news over more evergreen ice buckets, for example. It started a feature to show “trending news” handpicked by humans rather than computers to ensure that people found important information on Facebook. You can predict what happened next. Backlash again. Facebook took heat in 2016 for reportedly excluding right-leaning news sources from its approved news categories. Facebook was chagrined, and trending news was gutted.

ARE YOU DETECTING A PATTERN?
This short history shows Facebook’s fixes to problems sometimes need fixes of their own. And note that the changes Facebook is making now to double down on “meaningful interactions” are the opposite of the changes it made to counter Twitter’s rising influence. Back then Facebook fixed itself by doubling down on public content. Now the fix is less public content.

I’m not saying Facebook shifts gears repeatedly to be malicious, or even that its continual tinkering is bad. Companies should change priorities quickly when business and social needs dictate. I believe CEO Mark Zuckerberg when he says, as he did last week, that he wants Facebook to be a force for good. Whether he is capable of doing that, or taking the right steps to do so, are a different matter.

Facebook always has high-minded principles behind the changes it makes, but it’s important to see the full context. Like any organism, Facebook responds to external stimulus and then responds again — perhaps back in the original direction — to the next external stimulus. And it doesn’t necessarily know what it’s doing.

This is what all humans and human-run organizations do, of course. But it’s useful to remember that nothing at Facebook is permanent, not even its principles. That means Zuckerberg’s current clear-eyed worldview and his shake-up of Facebook’s strategy may not stick. — Bloomberg

 

This column does not necessarily reflect the opinion of Bloomberg LP and its owners.

Davao City council approves tax incentives for parking space investors

LAND OWNERS and property developers who will invest in parking facilities in Davao City will now be able to avail of tax incentives after the city council approved the ordinance that seeks to address the traffic congestion in the city. “We want to encourage property owners in the city to develop parking facilities that will help decongest traffic and address the increasing number of vehicles in the city,” said Vice-Mayor Bernard E. Al-ag, who chairs the council. Mr. Al-ag said the ordinance is aligned with the proposed resolution that will prohibit car parking along certain streets. He also noted that there are still numerous properties at the city’s commercial district that have remained unused, which could be developed into car parks. Under the ordinance, the city will provide a two-year exemption from the payment of real property tax for all the lands qualified as a preferred area for the car park investment. The construction of a parking building or facility on the qualified land will also have a five-year tax exemption for the structure and business taxes. The ordinance, however, excludes from the incentives parking spaces required under the National Building Code of the Philippines. — Carmencita A. Carillo

PLDT to appeal DoLE order to regularize workers

PLDT, Inc. on Wednesday said it will appeal anew the Department of Labor and Employment’s (DoLE) order for the telecommunications giant to provide regular employment to around 7,000 contractual workers.

In a statement, PLDT said it has received its copy of the Jan. 10 Resolution issued by Labor Secretary Silvestre H. Bello III, which rejected the company’s appeal of a July 3, 2017 order to regularize employees and settle their unpaid benefits.

PLDT said it will file a motion for reconsideration within the 10-day prescribed period.

“The Resolution reduces (a) the number of workers ordered to be regularized by PLDT to 7,416 (from 8,720 previously); and (b) the monetary liability of PLDT and its contractors to P66.3 million (from P78.2 million),” the company said.

However, PLDT noted the resolution failed to address the  “fundamental jurisdictional and due process issues raised by PLDT and 41 of its contractors in their Appeals to the Office of the Secretary.”

In its July 2017 order, the DoLE ordered PLDT regularize employees of 17 companies found to be engaged in labor-only contracting. These companies included SPi CRM, Inc., Activeone Health, Inc., Archon Consulting and System Services, Inc., and Hibizcom Corp.

The DoLE order also asserted that PLDT and 48 of its contractors did not fully pay monetary benefits to some workers totaling around P78.6 million, and noted PLDT violated DoLE Order no. 18-A on contracting-out, which means the telco giant should issue regular employment positions to around 8,720 contractual workers.

In its appeal, PLDT questioned what it says was an absence of evidence and the use of “template findings” by the DoLE for these conclusions; DoLE’s disregard of PLDT’s and its contractors’ evidence; and “erroneous computation” of the P78.6-million monetary award; and DoLE’s “violation of PLDT’s and its contractors’ due process rights.”

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has a stake in BusinessWorld through the Philippine Star Group, which it controls. — Patrizia Paola C. Marcelo

Disgruntled Cavs

The news that the Cavaliers are disgruntled comes as no surprise. The news that not a single one of them wants to go on record to say they’re disgruntled also comes as no surprise. In each of the last seasons, the wine and gold have faced adversity. And in each of the last seasons, they’ve gone on to secure Finals berths, even coming up a championship via the biggest come-from-behind campaign in National Basketball Association history. So to publicly argue that they’re not as confident in their capacity to hurdle obstacles this season is tantamount to admitting their Hyde side is winning, and perhaps for good.

Confidence can be fleeting. Through a long, arduous regular season, any team not named the Warriors will have ups and downs, and the key to success is to understand that the forest is more important than the trees — and to therefore not be too high after wins and not too low after losses. Since James came back to the fold in 2014, the Cavaliers have learned to digest this fact. It’s why they managed to run roughshod over the rest of the East, and why, their underdog status notwithstanding, they’ve put up respectable stands with the Larry O’Brien Trophy on the line.

This year, though, the Cavaliers are hard-pressed to stay the course. A roster overhaul has negatively affected their competitiveness on the court and camaraderie off it. Established glue guys are gone, and in their place come new faces who admittedly bring unique sets of pluses, but who nonetheless need time to adjust. A pronounced predilection for experience over youth and injuries to key players haven’t helped. In the face of such upheaval, the current swoon has resulted in burdened bodies, overactive minds, and frayed emotions.

Still, the Cavaliers know they’ve got a trump card. Through all the tumult, LeBron James has been their one most important constant. It’s why their fingers are crossed they can once again right the ship. And it’s why they will not let their doubts permeate beyond off-the-record whispers in back rooms. Because to do so would be to cast aspersions on his capacity to lead. Because to do so would be to give up.

Make no mistake. The Cavaliers know their problems are real. The win streak that raised their profile was built through pronounced dogfights against supposed easy pickings. Meanwhile, they’re now being blown off stadiums by the very opponents they’re slated to see in the playoffs. Which has led them to be afraid, to be very afraid, of their immediate future. They still have time to change, but, given the way they’re thinking, they can easily get worse as get better.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

The Titanic and underwater wine aging

WHEN CHAMPAGNE from the infamous sunken Titanic was recovered in 1985 — 73 years after the luxury ship went down on April 15, 1912 in the North Atlantic Ocean — wine enthusiasts and professionals were all excited to see how the wines survived.

The Royal Mail Ship (RMS) Titanic was the British luxury passenger liner that sank during its maiden voyage en route to New York City from Southampton, England, killing about 1,500 passengers and crew members. The Titanic is perhaps better known among our generation because of James Cameron’s disaster movie, the Oscar-winning box-office hit that catapulted the then relatively unknown actors Leonardo DiCaprio and Kate Winslet into Hollywood stardom.

THE 1907 AND THE 170+-YEAR-OLD VEUVE CLIQUOT CHAMPAGNES
The champagnes that were said to have been recovered in good shape from the shipwreck were the 1907 Heidsieck Gout Americain (or “American Taste,” a phrase used at that time to mean that it was a much sweeter version) champagnes. No published report had stated how many good bottles were recovered, but in 2004, six bottles of this batch were rumored to have been sold to a rich Asian collector for an undisclosed and presumably sinful amount. The secret of these champagnes’ drinkability would have been lost forever, but by coincidence, the same 1907 Hiedsieck champagnes were discovered and recovered from another sunken ship in 1998. The Swedish vessel Jonkoping, shipwrecked in 1916, carried a few thousand bottles of the same champagne, of which some hundred were retrieved by divers. These are from the very same champagne lot I saw being sold at the Atlas Bar in Singapore for a whopping S$190,700 (P7.6 million) per bottle, and which are also said to be available in other glitzy places like the Ritz-Carlton Hotel in Moscow for $275,000 (P13.75 million).

The ridiculous price tag is obviously because of its rarity and historic value, but these champagnes, when opened and tasted by wine experts, were astoundingly not only drinkable, but very much alive, and — incredibly — still have the fizz inside, but with more complex flavors, developed presumably from its underwater aging.

In 2010, as reported by National Geographic magazine, divers found some 168 bottles (another source said 79 bottles) of 19th century Champagne in a ship which had sunk to a depth of over 50 meters deep in the Baltic Sea. Markings visible on the corks showed that these Champagnes were produced by Champagne houses Veuve Clicquot Ponsardin, Heidsieck, and Juglar (already shut down in 1830s).

Not long after this discovery, Dominique Demarville, cellar master for Veuve Clicquot, was able to get his hands on some of their very old 19th century-made Champagnes. And trusting his impeccable knowledge of Champagnes and their Cliquot house style, and having read his comments that these 170-year-old Champagnes were still “sweet and fresh” made a convincing case that perhaps there is indeed aging potential underwater, not only for champagnes, but for still wines too.

True enough, Veuve Cliquot started experimenting with what it calls “Cellar in the Sea,” submerging 300 regular 750-ml. bottles and 50 magnums into the same Baltic Sea in 2016. This move was both symbolic of the 2010 discovery of its old vintage from the same site, but also for experimentation on the potential of underwater aging. Wine experts believe in the theory that consistent low temperature of below 5°C, constant pressure, and dark surroundings constitute near perfect conditions for wines to evolve slowly. Veuve Clicquot Ponsardin plans to monitor the underwater aging of these newly submerged wines for the next 40 years.

FAD OR NEW METHOD?
Champagnes were not the only bottles recovered from the many shipwrecks that happened throughout history — several still wines have been discovered too, but many were of less significance in terms of how old the recovered wines were, and from divers simply not reporting their underwater loot.

Veuve Clicquot Ponsardin was not the first winery to try this underwater aging (Raul Perez from the Rias Baixas DO in Spain may be the first winery to have done so in 2003, using wines made from the Albarino grapes), but they certainly were the most visible adopter such that it may push this small trend into a wider scale. Already a handful of wineries, small and medium sized ones, have been experimenting with this aging method and all were perhaps inspired by the Titanic discovery.

One of the most aggressive wineries to try underwater aging is Napa Valley’s Mira Winery. It is credited with being the first to use the term “aquaoir” — a portmanteau created from aqua (water) and the French viticultural term terroir. Aquaoir means the aging condition of the submerged wine and the ensuing effects of underwater temperature, depth, pressure, light or lack of it, stability, motion, etc. that come in this form of aging wine. The same Napa Valley Cabernet Sauvignon that is land-aged in a regular cellar is sold at $55 a bottle, while the underwater aged version (submerged for three months in Charleston Harbor in South Carolina), if available, is being sold for 10 times more or over $500. The press releases from a 2013 blind tasting of two Mira Cabernet Sauvignon 2009 vintage wines — comparing the underwater aged wine against the all-ground aged version — showed that the underwater aged wine seemed to have accelerated its evolution by around two extra years, making the wine more approachable than the all-ground cellared counterpart. Whether this was gimmickry or a real discovery of a new aging method, the higher price seemed justified.

Other than the perceived improvement in wine taste, the underwater aged wine’s price is quite hefty for a few other reasons — consider the labor intensive nature of dunking the wines (one has to hire professional divers), the correct use of metal cages and partitions and other equipment, and, of course, the huge risk and potential for losses due to salt water contamination and other foreseen and unforeseen damages. After all, we are still in the very early stage of studying the so-called aquaoir.

So many questions still need to be answered about underwater cellaring, like: If Mira wines accelerated with underwater cellaring, how could the Champagnes recovered from the shipwrecks survive for over a century? Do these two findings not contradict each other? Therefore, is underwater aging more for wine evolution or for wine preservation? So many unknowns still need answers.

Aside from the underwater cellaring done in France, Spain, and the US, it has also been done in Italy, Greece, and Croatia. Regulations — which really do not exist for this aging method — may also come in as political, social, and environmental groups may also soon be dipping their fingers into this subject. Will underwater aging become a norm? Only time can tell.

First I need to get my hands on some of these underwater-aged wines and taste them for myself. But on the theory alone, I am extremely tempted to do my own underwater cellaring with some of my younger wine collections. Perhaps in nearby Taal Lake where depths can reach 150 meters and be ideal for the positive effect of aquaoir. Retrieving these wines though may be another challenge…..

 

The author has been a member of the Federation Internationale des Journalists et Ecrivains du Vin et des Spiritueux or FIJEV since 2010. For comments, inquiries, wine event coverage, and other wine-related concerns, e-mail the author at protegeinc@yahoo.com. He is also on Twitter at twitter.com/sherwinlao.

Big push for halal products in Gulf states

THE Export Marketing Bureau (EMB) of the Department of Trade and Industry (DTI) will be developing more halal food products for export to markets like the Middle East.

Trade and Investments Promotion Group (TIPG) Assistant Secretary Abdulgani Macatoman told BusinessWorld that the country’s top halal export is processed tropical fruits to markets like Malaysia, Indonesia and Brunei — which along with the Philippines are members of the East ASEAN Growth Area (BIMP-EAGA).

Some exports also find their way to the Middle East.

The DTI is expecting halal exports of P1 billion this year, compared with P800 million in 2017.

“[Right now], we are developing pili nuts, desiccated coconut [for export] in the Gulf countries, the oil-rich countries in the Middle East. Those are who were targeting,” he added.

“[We’ll also do] halal textiles and fashion, like hijabs and leather goods.”

The DTI, which leads the Philippine Halal Board, has also set up the 100-hectare Asian Halal Center in Zamboanga City to further promote halal certification and trade.

Within BIMP-EAGA, the Philippine halal market has room to grow, Trade Secretary Ramon M. Lopez said.

“[Our halal market] is not that small and it’s not that big either but we’re developing it,” Mr. Macatoman said. — Anna Gabriela A. Mogato

InstaPay platform rollout seen within next quarter

THE PUSH for electronic payments is expected to accelerate this year after industry players formalized arrangements with the Bangko Sentral ng Pilipinas (BSP), while work is under way for a new clearing house for real-time fund transfers.

BSP Governor Nestor A. Espenilla, Jr. said that banks and financial technology (fintech) players are working to roll out the InstaPay platform within the second quarter, which would be dedicated to processing real-time and small-value transactions across banks and e-money wallets.

The central bank targeted a first-quarter rollout for InstaPay, but this had to be pushed back amid technical issues that needed to be smoothed out for interbank transactions.

“We’re putting out a lot of our moral suasion and our prestige to get people who don’t normally want to talk each other because they are mortal rivals in the market,” Mr. Espenilla told reporters in a recent ambush interview.

“You (players) can cooperate in the clearing and settlement, but in the products space you can do your own thing — that’s the dialogue we are having.”

The InstaPay will clear electronic fund transfers (EFT) across banks and e-wallets in real time, focusing on low-value transactions worth below P50,000.

This would be the second automated clearing house after the Philippine EFT System and Operations Network (PESONet) was rolled out in November, which will process fund transfers in batches.

Meanwhile, the central bank announced that the BSP has entered into an agreement with the Philippine Payments Management, Inc. (PPMI) to serve as the industry-led body to facilitate clearing operations for digital payments.

The central bank signed a deal last Friday to recognize PPMI as the payment system management body for automated clearing houses, while the BSP will serve as the “primary overseer” of the platforms.

“The BSP and PPMI agreed to have a shared responsibility in monitoring new or emerging trends in the retail payment industry and to notify each other of any relevant information that would warrant appropriate action from either party,” the central bank said in a statement sent yesterday.

The deal also requires all financial firms to undertake “direct clearing activities” via the automated clearing houses under the PPMI’s watch, which will facilitate interbank payments and fund transfers.

All these efforts fall under the National Retail Payment System (NRPS) led by the central bank, with the goal of shifting cash-heavy transactions on to digital avenues.

The BSP targets to lift the share of digital payments to 20% of total transactions by 2020, coming from a measly 1% recorded in 2013. — Melissa Luz T. Lopez

Harbour Center sets aside P700-M capex for 2018

HARBOUR Centre Port Terminal, Inc. (HCPTI) said it is initially allocating P700 million as capital expenditures this year, mostly for facilities and information technology upgrade.

In a statement, HCPTI said the 2018 capex will be internally funded.

The port operator was on track to see a 16% increase in gross revenues in 2017, after seeing a 7% jump in vessel throughput and a 3% rise in cargo volume.

HCPTI Chairman Reghis M. Romero II was quoted as saying this would bring its total domestic and foreign cargo volume to 6.5 million metric tons by end-2017.

Mr. Romero attributed the strong growth to HCPTI’s “sound operating efficiencies and fiscal management, making the employees perform well to increase volume completion while reducing vessel turnaround time.”

“Driving HCPTI’s much-improved operating systems are strict adherence to global standards in all management aspects, real-time cargo and documentation processing and monitoring, compliance with government-enforced international security protocols, and a continuing equipment refleeting program,” he said.

As part of HCPTI’s refleeting program, the company last year acquired seven 15-tonner forklift to boost cargo-handling capacity.

HCPTI holds a 65% stake in the Manila North Harbor Port, Inc. (MNHPI). MNHPI signed the 25-year contract to operate, manage and maintain the North Harbor in November 2009.

Subway, road loan deals signed with Japan this month

THE PHILIPPINE and Japanese governments will sign this month a loan agreement for the first phase of the Metro Manila Subway and the Plaridel Bypass Road, the Department of Finance (DoF) said in a statement.

 “The contract for the first tranche of the 104.5 billion yen or about $929.1 million loan for the first phase of the subway project and the 9.399 billion yen or $89 million loan accord for the third phase of the Plaridel Bypass Road Project in Bulacan, are both targeted to be signed on the last week of January 2018, once the Philippine government secures the approval of the Monetary Board and the Special Presidential Authority for these agreements,” the DoF said.

“The 15.928 billion yen ($142 million) loan agreement for the flood risk management project in the Cavite industrial area, meanwhile, is targeted for the Monetary Board’s final approval, with the effectivity of the loan targeted on the first week of February 2018,” it added.

President Rodrigo R. Duterte and Japanese Prime Minister Shinzo Abe witnessed the exchange of notes for the Metro Manila Subway and the Plaridel Bypass Road Project between Foreign Affairs Secretary Alan Peter S. Cayetano and Japanese Ambassador Kojie Haneda on the sidelines of the 31st ASEAN (Association of Southeast Asian Nations) Summit on Nov. 13.

At the summit, the heads of state also witnessed the ceremonial exchange of the signed loan agreements of the Cavite project between Finance Secretary Carlos G. Dominguez III and Japan International Cooperation Agency (JICA) Chief Representative to the Philippines Susumu Ito.

The first phase of the Metro Manila Subway project will run from Mindanao Avenue in Quezon City through the FTI complex in Taguig City, ending at the Ninoy Aquino International Airport in Parañaque City. The subway will help decongest EDSA and connect major business centers in Metro Manila to the country’s premier international gateway.

The Plaridel Bypass Road Project involves the construction of a 24.61 kilometer arterial road that will link the North Luzon Expressway in Balagtas, Bulacan with the Philippine-Japan Friendship Highway (Maharlika Highway) in San Rafael, Bulacan to help alleviate the perennial congestion in the town centers along the highway. The exchange of notes signed on Nov. 13 involves the project’s third phase.

The flood control project in Cavite, a region that hosts economic zones and residential communities, will benefit about 8,000 households as well as manufacturing plants in the cities of General Trias and Imus and the municipalities of Kawit, Noveleta and Rosario.

It involves the construction of flood protection measures along the San Juan River and Maalimango Creek Drainage Area of Imus.

The fourth Philippine-Japan Joint Committee Meeting on Infrastructure Development and Economic Cooperation will convene on Feb. 12 according to the DoF.

In the previous meeting, both countries agreed to speed up project implementation procedures.

The loans were offered by Mr. Abe during his trip to the Philippines in January 2017, when he pledged some 1 trillion yen, or $9 billion in Official Development Assistance (ODA) throughout the current administration’s term.  Elijah Joseph C. Tubayan

YouTube toughens rules regarding which videos are eligible to get ads

SAN FRANCISCO — YouTube on Jan. 17 announced ramped-up rules regarding when it will run ads with videos as it scrambled to quell concerns by brands about being paired with troublesome content.

“There’s no denying 2017 was a difficult year, with several issues affecting our community and our advertising partners,” YouTube vice-president of display, video and analytics Paul Muret said in a blog post.

“The challenges we faced in 2017 have helped us make tough but necessary changes in 2018.”

Channels at YouTube will need to have at least 1,000 subscribers and 4,000 hours of watch time within the past year to be eligible for ads, according to Mr. Muret.

Previously, channels could be eligible for ads as part of a YouTube Partner Program by racking up 10,000 views or more.

“We want to take channel size, audience engagement, and creator behavior into consideration to determine eligibility for ads,” Mr. Muret said.

YouTube will closely watch for spam, abuse flags and other signals to make sure channels are remaining within the Google-owned video-sharing platforms policies regarding content, according to the post.

Mr. Muret said that manual reviews of video will be added to a Google Preferred system that brands use to place ads with popular YouTube content to better vet videos.

YouTube is also providing advertisers simpler controls regarding where ads appear and transparency including safety checks by outside parties, says Mr. Muret.

The changes were expected to affect “a significant number” of channels that can get ads.

The moves came as YouTube strived to assure companies their ads would not appear with offensive or inappropriate videos.

“While we took several steps last year to protect advertisers from inappropriate content, we know we need to do more to ensure that their ads run alongside content that reflects their values.” — AFP