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First look: Zuck's F8 address

Moving the Market: Mark Zuckerberg will today lay out the specific steps he and his team are taking to create a more privacy-focused Facebook, providing concrete details for the vision he unveiled in early March, sources familiar with his plans tell me.

• The Facebook chief will use today's F8 Developer Conference in San Jose to unveil new features across Facebook, Instagram, Messenger, WhatsApp and Oculus intended to enhance private sharing and private messaging.

• Zuckerberg and his team will also unveil the features and innovations Facebook is launching to integrate messaging across Facebook's various services.

• The presentation will focus almost exclusively on privacy, with emphasis on the creation of a digital "living room" to counter the digital "town square."

The big picture: Today's address will reveal how Facebook plans to restructure around encrypted, ephemeral messaging — a strategic pivot that could create a kinder, gentler user experience and open up new revenue opportunities in direct-to-consumer marketing and user-to-user commerce.

• Zuck last month: "I believe the future of communication will increasingly shift to private, encrypted services where people can be confident what they say to each other stays secure and their messages and content won't stick around forever. This is the future I hope we will help bring about."

• Not said: Snapchat already brought that future about. Facebook is just bringing it to scale (which is no small matter).

Three big questions:

• How heavily will Facebook borrow from Snapchat, a pioneer in encrypted, ephemeral messaging?

• How will Facebook leverage Oculus virtual reality and augmented reality to enhance the digital "living room"?

• What commitments will Zuckerberg make to safety and security that signal a real change from Facebook's past?

What next: Zuckerberg's keynote address begins at 10 a.m. PT. While you're waiting, revisit Zuckerberg's original roadmap for the digital living room.

• Bonus: Facebook is also giving more than 60 academics access to “privacy-protected Facebook data” in an effort to better understand social media’s impact on democracy.

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Larry Page shows weakness

Big in the Bay, big on the Street: Larry Page's long dominant advertising business is starting to show signs of trouble after Google and its properties posted their slowest revenue growth in four years.

• The problem: YouTube, which is facing more competition. With fewer clicks on YouTube ads, Google's quarterly ad revenue growth has dropped from 24.4% to 15.3% year-over-year.

The big picture, via WSJ's Rob Copeland: "The poor results highlight the risks for one of Silicon Valley’s biggest names in effectively leaning on one massive, if lucrative, business."

• "For all its myriad arms and efforts to diversify, Google remains essentially an old-fashioned billboard operation with a high-tech gloss — and it now faces more rivals."

The bigger picture: It's not just Google. Alphabet's Waymo, Verily and Fiber are hurting too, as are Google smartphone sales.

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Choose Your Own Adventure

(Milken Edition)

• Christine Lagarde says its a "delicate moment" for the global economy, though she's "not expecting a recession."

• Ivanka Trump says the "absolutely booming" U.S. economy "is going to keep going. ... We are really at the beginning of it."

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Jack Dorsey's video play

Big in Midtown, big in Market Square: Twitter has announced a new slate of live and on demand premium content deals across sports, entertainment and news, part of an effort to bolster its video advertising business.

Notable deals:

• Live NFL and MLS broadcasts.

• Live concerts via Live Nation.

• New sports and gaming shows from ESPN, The Players Tribune, Bleacher Report and Blizzard Entertainment.

• New news programs from The Wall Street Journal, Bloomberg's TicToc, CNET and Time Magazine.

• New shows from Univision and Viacom.

The big picture, via Axios' Sara Fischer: Twitter "hopes that more high-quality video programming, created exclusively for Twitter with trusted media partners, will lure advertisers who are looking for more brand-safe destinations on social media platforms."

• Key stat: Video ads are Twitter's "fastest-growing ad format and now represent over 50% of revenue."

See the full list of shows.

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Streaming TV's ad risk

State of the Stream: Streaming television viewership is growing rapidly across the world and across devices, but the poor quality of advertising threatens viewer engagement and the return on advertiser investment, according to a new report from Conviva, a research and analytics firm.

The good news:

• Streaming TV viewership is up 72% year-over-year, while the rate of growth is accelerating -- 49% faster now than in Q1 2018.

• Virtual MVPDs like Hulu, DirecTV Now, Hulu, PlayStation Vue and Sling saw viewership increase 108% year-over-year.

• Streaming viewership peaks during live events, including the Super Bowl (up 157% from 2018) and March Madness (up 67%).

The bad news:

• "If an ad doesn’t play properly, it’s game over," Conviva's authors say in their report.

• Up to 47% of advertising attempts may not make it to the viewers’ screens as intended due to delays, buffering and playback errors.

• Delivering ads at "broadcast-level quality" should be "the first order of business" for every streaming TV provider.

The big picture: "Maintaining a high-quality viewer experience across content and advertising is increasingly important as streaming TV providers look to increase viewer retention and monetization."

Market Links

• Daniel Ek's Spotify hits 100 million paying subscribers (NYT)

• Doug McMillon bets on Walmart's original content (Bloomberg)

• Adam Neumann confidentially files for a WeWork IPO (CNBC)

• Jeffrey Katzenberg adds Cory Booker to fundraising slate (THR)

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Joe Russo on Disney, Netflix

The streaming wars: "Avengers: Endgame" directors Joe and Anthony Russo sat down with my CNBC colleague Julia Boorstin at the Milken Global Conference yesterday, where Joe offered his take on the Hollywood streaming wars:

• "The closest race to watch is Disney versus Netflix."

• "Netflix is at volume, and they have to get their volume to quality. Disney is at quality, and they’ve got to get volume."

• "It’ll be interesting to see who achieves their goal first, because that will determine market dominance."

• "... unless Apple throws their hat at the content game much more significantly than what they’ve already done."

• Not in the running, apparently: Amazon, where the Russos are working on a yet-to-be-named spy series.

The big picture: Russo is right. The Hollywood streaming wars come down to Disney vs. Netflix. More specifically, as I've noted before, it will likely come down to Disney's Hulu vs. Netflix.

• In part, that's because the other players — Apple, Amazon, AT&T, etc. — are using original content to market separate core products like the iPhone, Amazon Prime and AT&T wireless.

• At Disney and Netflix, content is the core product.

Bonus: THR's Pamela McClintock on the talk of Tinseltown: Can 'Avengers: Endgame' topple 'Avatar's' $2.8 billion all-time record?

What Next: The Champions League semifinals kick off at Noon PT today on TNT. Barcelona vs. Liverpool; Tottenham vs. Ajax.

• What Jeff Zucker is reading: SBJ's Ian Thomas says Turner's $180 million, three-year Champions League bet is already paying dividends.

See you tomorrow.