Raphael Stevens

IOT: Powering the digital economy

Produced using electrolysis and renewables like wind and solar, green hydrogen has some high-profile backers.
While some are hugely excited about green hydrogen’s potential, it still represents a tiny proportion of global hydrogen production.
Today, the vast majority is based on fossil fuels, a fact at odds with net-zero goals.

From the United States to the European Union, major economies around the world are laying out plans to move away from fossil fuels in favor of low and zero-carbon technologies.
It’s a colossal task that will require massive sums of money, huge political will and technological innovation. As the planned transition takes shape, there’s been a lot of talk about the relationship between hydrogen and natural gas.

During a panel discussion moderated by CNBC’s Joumanna Bercetche at the World Economic Forum in Davos, Switzerland, the CEO of energy firm AES offered up his take on how the two could potentially dovetail with one another going forward.   
“I feel very confident in saying that, for the next 20 years, we need natural gas,” Andrés Gluski, who was speaking Wednesday, said. “Now, what we can start to do today is … start to blend it with green hydrogen,” he added.
“So we’re running tests that you can blend it up to, say 20%, in existing turbines, and new turbines are coming out that can burn … much higher percentages,” Gluski said.
“But it’s just difficult to see that you’re going to have enough green hydrogen to substitute it like, in the next 10 years.”
Produced using electrolysis and renewables like wind and solar, green hydrogen has some high-profile backers.

These include German Chancellor Olaf Scholz, who has called it “one of the most important technologies for a climate-neutral world” and “the key to decarbonizing our economies.”
While some are hugely excited about green hydrogen’s potential it still represents a tiny proportion of global hydrogen production. Today, the vast majority is based on fossil fuels, a fact at odds with net-zero goals.
Change on the way, but scale is key
The planet’s green hydrogen sector may still be in a relatively early stage of development, but a number of major deals related to the technology have been struck in recent years.
In December 2022, for example, AES and Air Products said they planned to invest roughly $4 billion to develop a “mega-scale green hydrogen production facility” located in Texas.
According to the announcement, the project will incorporate around 1.4 gigawatts of wind and solar and be able to produce more than 200 metric tons of hydrogen every day.
Despite the significant amount of money and renewables involved in the project, AES chief Gluski was at pains to highlight how much work lay ahead when it came to scaling up the sector as a whole.
The facility being planned with Air Products, he explained, could only “supply point one percent of the U.S. long haul trucking fleet.” Work to be done, then.
High hopes, with collaboration crucial  
Appearing alongside Gluski at the World Economic Forum was Elizabeth Gaines, a non-executive director at mining giant Fortescue Metals Group.
“We see green hydrogen as playing probably the most important role in the energy transition,” she said.
Broadening the discussion, Gaines also spoke to the need for collaboration in the years ahead.
When it came to “the resources that are needed to support the green transition, and similar[ly] to the production of green hydrogen,” she argued there was a need “to work closely with government and regulators.”
“I mean, it’s one thing to say we need more lithium, we need more copper, but you can’t do that without getting the approvals, and you need the regulatory approvals, the environmental approvals,” she said.
“You know, these things do take time, and we wouldn’t want that to be the bottleneck in the energy transition, similar to the skills and resources that we need.”

Kivanc Zaimler, energy group president at Sabanci Holding, also stressed the importance of being open to new ideas and innovations.
“We have to — we need to — embrace, we have to welcome, we have to support all the technologies,” he said. These included both hydrogen and electric vehicles.
Expanding on his point, Zaimler spoke of the need for cooperation, especially when it came to hydrogen.
“We have to bring all the right people around the table — academicians, governments, private sectors, players around the entire value chain.”
This included, “the manufacturing of the electrolyzer, the membranes, the green energy producers, the users.”   More

President Joe Biden made a surprise video appearance on “Saturday Night Live” during host Aubrey Plaza’s monologue.
The “White Lotus” star, who, like Biden, is from Delaware, joked that she was voted the most famous person from the state, beating out the president.
Many viewers took to Twitter to question whether the president’s appearance was real, or if the video was generated by AI, but Biden shared the clip on his Twitter account Sunday afternoon.

U.S. President Joe Biden speaks during the National Association of Counties Legislative Conference in Washington, D.C., U.S., February 15, 2022.
Joshua Roberts | Reuters

President Joe Biden made a surprise video appearance on “Saturday Night Live” during first-time host Aubrey Plaza’s monologue.
The “White Lotus” star, who, like Biden, is from Delaware, joked that she was voted the most famous person from the state, beating out the president.

“That’s a fact and he was pissed, he was livid,” Plaza said.
Biden then appeared via video and said, “Aubrey, you’re the most famous person out of Delaware and there’s no question about that. We’re just grateful you made it out of ‘White Lotus’ alive.”
Many viewers took to Twitter to question whether the president’s appearance was real, or if the video was generated by AI, but Biden shared the clip on his Twitter account Sunday afternoon.
Despite Biden’s willingness to get in on the Delaware joke, cast members didn’t spare any punches and poked fun at his treatment of classified materials later in the show.
The FBI said Saturday that more classified documents were found at Biden’s Wilmington residence, marking the fourth time since November that classified records or materials has been found at a private address of Biden’s.

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Disney’s “Avatar: The Way of Water” has topped $2 billion at the global box office.
This is the third James Cameron movie to hit this benchmark: “Titanic,” “Avatar” and “The Way of Water.”
Only three other movies have eclipsed $2 billion: “Star Wars: The Force Awakens,” “Avengers: Infinity War” and “Avengers: Endgame.”

Avatar: The Way of Water
Courtesy: Disney Co.

Disney’s “Avatar: The Way of Water” has topped $2 billion at the global box office, making it the third James Cameron film to reach this benchmark.
Only five other films have hit this metric — the original “Avatar,” “Avengers: Endgame,” Cameron’s “Titanic,” “Star Wars: The Force Awakens” and “Avengers: Infinity War.”

As of Sunday, “The Way of Water” had tallied $598 million from domestic ticket sales and $1.426 billion from foreign markets. The film is the sixth highest-grossing film of all time and will likely move up in the rankings as its run in theaters continues.
“The film has now joined that very exclusive box office club and has made it look almost effortless,” said Paul Dergarabedian, senior media analyst at Comscore.
The box office has struggled to recover in the wake of the pandemic, as audiences shifted to more at-home viewing and fewer films reached the big screen. As the industry rebounds, films like “The Way of Water” have proven that moviegoers are eager to return for big blockbuster spectacles. And many are willing to pay for premium showings like IMAX or large format screens that often come with a higher price tag.
While “The Way of Water” has had a more muted showing than expected in China, the result of a spike in Covid numbers and hospitalizations due to the virus, it has generated strong ticket sales from France, Germany and Korea.
Reaching the $2 billion mark is a good sign for the Avatar franchise, which has three more installments slated for release over the next five years. It also meets the goal set by Cameron, who had previously said the film would need to be the third or fourth highest-grossing film in history just to break even.

“Keeping in line with Cameron’s ‘king of the box office world’ career trajectory it should come as no surprise that the justification for completion of the director’s vision for the world of Pandora is now undeniably assured and given the stamp of approval by enthusiastic fans around the globe,” Dergarabedian said.
It is unclear what the film’s production budget was, although estimates range from $250 million to $350 million, not including marketing costs.
“The Way of Water” should steadily continue to generate box office receipts as it has no direct competition in theaters until mid-February, when Marvel Studios’ “Ant-Man and the Wasp: Quantumania,” another Disney production, is released.
Correction: This story was updated to reflect that “The Way of Water” is the third James Cameron movie to gross $2 billion at the global box office.

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Cyber Report

Medical devices for conditions including diabetes and sleep management, from insulin pumps and continuous glucose monitors to C-PAP machines, are increasingly connected to the internet.
Insulin pumps and glucose meters can now be connected to smartphones via Bluetooth while C-PAP machines can store and send data to health-care providers without needing an office visit. 
The internet of things for personal health comes with many benefits and the world of remote patient monitoring is growing, but also comes with greater scrutiny from the FDA about cybersecurity risks.

A blood glucose control system with the help of a smartphone and a meter that is fixed to the skin.
Ute Grabowsky | Photothek | Getty Images

The internet of things to remote monitor and manage common health issues has been growing steadily, led by diabetes patients.
About one out of every 10 Americans, or 37 million people, are living with diabetes. Devices such as insulin pumps, which go back decades, and continuous glucose monitors, which monitor blood sugar levels 24/7, are increasingly connected to smartphones via Bluetooth. The increased connectivity comes with many benefits. People with type 1 diabetes can have much tighter control over their blood sugar levels because they’re able to review weeks of blood sugar and insulin dosing data, making it easier to spot trends and fine-tune dosing. In recent years, diabetes patient became so adept at remote monitoring that a DIY community of patient-hackers manipulated devices to better manage their medical needs, and the medical device industry has learned from them.

But the ability to monitor medical conditions over the internet comes with risks, including nefarious hacking. Though medical devices, which must go through FDA approval, meet a higher standard than fitness devices, there are still risks to protecting patient data and access to the device itself. The FDA has issued periodic warnings about the vulnerability of medical devices such as insulin pumps to hackers, and product makers have issued recalls related to vulnerabilities. In September, that occurred with Medtronic’s MiniMed 600 Series insulin pump, which the company and FDA warned had a potential issue that could allow unauthorized access, creating a risk that the pump could deliver too much or not enough insulin.
Sleep apnea, Type 2 diabetes and remote health care
It’s not just diabetes where the medical device market is offering patients new benefits from remote monitoring. For sleep apnea, which is estimated to affect as many as 30 million Americans (and one billion people globally) C-PAP machines can now store and send data to health-care providers without needing an office visit. 
The number of internet-connected medical devices grew during the pandemic, as lockdowns created a big push to treat people at home. As virtual care visits rose, “it opened everybody’s eyes to home-based medical devices for remote patient monitoring,” said Gregg Pessin, a senior director of research at Gartner.
Steady sales of continuous glucose monitors and insulin pumps have buoyed companies such as Dexcom, Insulet, Medtronic and Abbott Laboratories, and diabetes tech device sales are expected to grow. According to the Centers for Disease Control and Prevention, beyond the 37 million people in the U.S. that have diabetes, there are 96 million adults are estimated to be pre-diabetic. Manufacturers of continuous glucose monitors and insulin pumps, which have been the standard of care for type 1 diabetes for years, are increasingly targeting type 2 diabetes patients as well.
Multiple forms of medical cybersecurity risk
Industry security experts categorize cybersecurity risks of medical devices into three buckets.

First, there’s the risk to patient data. Many medical devices such as insulin pumps require patients to create online accounts to download data to a computer or smartphone. These accounts could include sensitive information, not just sensitive health data but personal details such as Social Security numbers.
Another risk is to the medical device itself, as evidenced by the headlines around the risk of hackers getting into a medical device like Medtronic’s pump and changing dosage settings, with potentially fatal effects. A report by Unit 42, a cybersecurity firm that is part of Palo Alto Networks, found that 75% of infusion pumps — which include insulin pumps — had “known security gaps” that put them at risk of being compromised by attackers. May Wang, chief technology officer of internet of things security at Palo Alto Networks, said that in a lab experiment hackers gained access to infusion pumps, changing medication dosages. “So now cybersecurity is not just about privacy, not just about data leakage. It’s more about life or death,” she said.
But Gartner’s Pessin said that such risk is slight in the real world. In the controlled conditions in a laboratory, “it’s just a matter of time before you’ll be able to do it,” but in the real world, “it’d be much more difficult,” he said.

A Medtronic spokeswoman said the company designs and manufacturers medical technologies to be as safe and secure as possible, and that its global product security office continuously monitors the security products throughout their lifecycle. The company also monitors the cybersecurity landscape to address vulnerabilities and to “take action to protect patients through a coordinated disclosure process and security bulletins.”
In September, Medtronic’s notice to users walked them through how to eliminate the risk of unintended insulin delivery by turning off the ability to dose remotely through a separate device.
The third cybersecurity risk is the connection between the medical device and network, whether it’s WiFi or 5G. As medical devices become more connected, they come with increased risk of malware, a risk well-known in other industries that could soon be in health care. Wong pointed to a case in 2014 in which Target leaked sensitive customer information after installing an HVAC system that was infected with malware.
While there aren’t any known incidents yet of this happening through medical devices used at home, it could be a matter of time, and older devices that are not updated regularly more at risk. In hospitals, old operating systems have left some medical equipment vulnerable to attack. Some medical imaging systems, which can have a lifecycle of over 20 years, are still running on Windows 98 without any security patches and there have been incidents where the MRI scanners or X-ray machines have been hacked to run crypto mining operations, unbeknownst to health-care providers.
Regulation of devices
Lawmakers and health-care leaders have been pushing for more guidance and regulations around medical device security. 
In April of last year, senators introduced the PATCH Act to require medical device makers that are applying for FDA approval to meet certain cybersecurity requirements and maintain updates and security patches. More recently, the $1.65 trillion omnibus appropriations bill passed at the end of 2022 included new medical device cybersecurity requirements. Experts said the law’s provisions did not go as far as the PATCH Act requirements, but are still significant.
An FDA spokesperson told CNBC that the new cybersecurity provisions in the omnibus bill represent a significant step forward in FDA’s oversight of cybersecurity as part of a medical device’s safety and effectiveness. Among the provisions, manufacturers will have to put plans and processes in place to disclose vulnerabilities. Device manufacturers will also have to provide updates and security patches to devices and related systems for “critical vulnerabilities that present uncontrolled risk,” in a timely manner.
How to maintain control as a consumer
As doctors are increasingly prescribing glucose monitors and insulin pumps for not just type 1 diabetes but the much more common type 2 diabetes as well, consumers weighing whether or not to use such a device can start by looking on the manufacturer’s website for statements about cybersecurity and HIPAA compliance for protection of their private health-care information. They can also ask their doctors about security, although cybersecurity experts say there is still work to be done to improve education about these risks among health-care providers.
Consumers with a medical device connected to the internet should register with the manufacturer to ensure they are notified about security updates. Following basic cyber hygiene at home is also key, since many devices now connect to WiFi. Make sure the WiFi network is protected with a strong password and also use a robust username and password for the company’s website if sharing or downloading data. More consumers are now also opting to use a password manager to hold all of their internet login information. Because devices can interact with other devices over WiFi, make sure home laptops and phones are secure as well. More

The $100 million-plus in expected box-office receipts for Universal Studios’ and Blumhouse’s “M3gan” is good news for the film business.
“M3gan” is the latest in a string of successful theatrical runs for the horror genre.
2023 is packed with horror film releases, including “Knock at the Cabin.”

A lifelike doll programmed to be a child’s greatest companion and a parent’s greatest ally turns murderous in Universal Studios and Blumhouse’s “M3GAN.”

A fashion-forward, murderous doll is ringing up big bucks at the box office.
“M3gan,” the newest release from the Universal Studios and Blumhouse collaboration, will end up with more than $100 million globally. It’s the latest success in a string of lucrative theatrical runs for the horror genre.

While Hollywood’s big-budget blockbusters typically get the most attention, the consistently strong performance of scary movies at movie theaters is good news for the cinema industry.
The pandemic fundamentally altered how and where consumers view entertainment. To be sure, people have returned to theaters, but not in the same volume as pre-pandemic times. Additionally, fewer theatrical releases have resulted in a smaller overall box office in the last year. The domestic box office reached $7.5 billion in 2022, better than $4.58 billion collected in 2021, but down around 34% compared to 2019.
Films like “M3gan” collectively add incremental value to the box office. In 2022, the horror genre accounted for around $700 million in domestic ticket sales, according to data from Comscore. While that figure is down compared to pre-pandemic levels, it indicates persistent demand for spooky entertainment as the theater business rebounds.

A scary good year

Paramount and Universal were the top contributors of horror content last year. Paramount’s “Smile” sold $105 million in tickets domestically and $217 million globally. Its newest installment in the Scream franchise took in $81 million in the U.S. and Canada and $137 million worldwide.
Universal’s “Nope” generated $123 million domestically and $171 million globally, while “The Black Phone” scored $90 million stateside and $160 million worldwide. The studio also released “Halloween Ends,” leading to $64 million in domestic ticket sales and $104 million globally, even though it hit streaming service Peacock the same day.

Ethan Hawke stars in Blumhouse and Universal’s “The Black Phone.”

Additionally, Disney’s Searchlight Pictures released “The Menu,” which snared $38 million domestically and $70 million worldwide.
Notably, Disney and Marvel Studios’ “Doctor Strange in the Multiverse of Madness,” which features horror elements, was not included in the tally. The film generated $411 million during its run in the U.S. and Canada and nearly $1 billion worldwide.
“We’re in the middle of horror’s new golden age,” said Shawn Robbins, chief analyst at BoxOffice.com. “It’s a genre that has ebbed and flowed in past decades but one that’s always evolved, maintained commercial appeal, and helped introduce new filmmakers to the world.” 
Here are several titles to expect from the horror genre in 2023:

Universal’s “Knock at the Cabin” — Feb. 3
Paramount’s “Scream VI” — March 10
Sony’s “Insidious: Chapter 5” — July 7
Warner Bros.’ “The Nun 2” — Sept. 8
Neon’s “Cuckoo” — Sept. 29
Universal’s “The Exorcist” — Oct. 13
Lionsgate’s “Saw X” — Oct. 27

Scaring up dollars

Blumhouse, a producer of “M3gan,” has revolutionized the horror genre in the last decade, turning small budget flicks into huge box-office returns. The studio has been responsible for the profitable and popular “Paranormal Activity” films as well as the Academy Award-winning “Get Out.”
“Paranormal Activity,” which was released in 2009, had a budget of just $15,000 and went on to make more than $107 million in the U.S. and nearly $200 million worldwide
Following that model, “M3gan” was made for just $12 million and is on its way past $100 million. Already, Universal and Blumhouse have greenlighted a sequel due out in 2025.

Still from Universal and Blumhouse’s “M3GAN.”

Last year, most wide-released horror films had a budget of between $16 million and $35 million. The only outlier was “Get Out” director Jordan Peele’s “Nope,” which carried a $68 million production budget. Films with smaller budgets mean don’t have to generate blockbuster-size ticket sales in order to turn a profit. Those economics also help to make horror films one of the most consistently well-performing genre of all time.
For example, consider “Skinamarink,” an experimental horror film out of Canada, which cost $15,000 to make and has gone on to generate more than $1 million at the box office.
“At the heart of its sustainability has been a generational turnover of young audiences that drive many of these movies at the box office, a pre-pandemic constant that’s picked up right where it left off as post-pandemic moviegoing has rebounded,” Robbins said.
Unlike fans of comic book films, who can be easily turned off by an unfaithful adaptation of their favorite character, horror fans don’t seem to mind if the film isn’t totally up to par. So long as the movie had some good scares and was seen as a fun experience, they’ll be back for the next installment.
Additionally, in the last two decades, the quality of the horror genre has greatly improved, due in large part to support from indie companies such as A24 and Neon, as well as distribution from streaming services such as Netflix, Hulu and Peacock.
“A systematic, incremental increase in the quality of horror films, a genre that was once considered the smash and grab, take the money and run, open on Friday, close on Sunday genre, has now, with the creative vision of amazing production companies and brilliant filmmakers, earned respect of critics and audiences alike,” said Paul Dergarabedian, senior media analyst, at Comscore.
“M3gan,” for example, currently holds a 95% “Fresh” rating on Rotten Tomatoes.
“The genre and its audience are invaluable to the industry ecosphere, and 2023’s promising release slate looks to help maintain that status quo,” Robbins said.
Disclosure: Comcast is the parent company of NBCUniversal and CNBC. NBCUniversal has a partnership with Blumhouse and owns Rotten Tomatoes.

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