Businesses

EU Eyes Big Tech as it Seeks Feedback on Who Should Pay Network Costs (reuters.com) 56

The European Commission on Thursday launched a consultation on the future of Europe's telecoms sector, starting a process that could lead to requiring Alphabet's Google, Apple, Meta and Netflix to pay some network costs. From a report: For more than two decades Deutsche Telekom, Orange, Telefonica, Telecom Italia and other operators have lobbied for leading technology companies to contribute to 5G and broadband roll-out. They argue companies including Amazon and Microsoft account for more than half of data internet traffic. The tech firms in response call it an internet tax that will undermine EU network neutrality rules to treat all users equally. The 12-week consultation will end on May 19. EU industry chief Thierry Breton cited the heavy investments required to roll out 5G and broadband, saying he was not targeting any company.
Television

Netflix Cuts Subscription Prices in Over 30 Countries (wsj.com) 68

Netflix has reduced the cost of its service in more than three dozen countries in recent weeks, as it tries to appeal to customers around the world who have an ever-growing list of streaming options. From a report: The streaming company's recent price cuts span Middle Eastern countries including Yemen, Jordan, Libya and Iran; sub-Saharan African markets including Kenya; and European countries such as Croatia, Slovenia and Bulgaria. In Latin America, nations including Nicaragua, Ecuador, and Venezuela have seen reductions in subscription costs, as have parts of Asia including Malaysia, Indonesia, Thailand and the Philippines. The cuts apply to certain tiers of Netflix in those markets -- in some cases halving the cost of a subscription.

As recently as last month, Netflix executives talked about raising -- not lowering -- prices. In a January earnings call, co-Chief Executive Greg Peters said the company is looking for places where they can afford to raise prices, which feeds continued content investments. "We think of ourselves as a non-substitutable good," Mr. Peters said. Netflix also has an opportunity to add new subscribers in markets where it doesn't currently have a large share, he said.

Media

Netflix Drops 'Surprise Me' Shuffle-Play Button (marketwatch.com) 48

Netflix has removed its "Surprise Me" button, a feature introduced in 2021 to alleviate the modern burden of choosing something to watch from thousands of titles. MarketWatch reports: The company discontinued the feature last month because of relatively low use, according to a spokeswoman. Netflix found that users tend to come to the service with a specific show, movie or genre in mind, undermining the appeal of a function such as "Surprise Me," the spokeswoman said. "We will continue to explore other ways to give members more options and ways to explore and discover content they want to watch," she said in a statement.
IT

Netflix's Password-Sharing Crackdown Hits Canada, But Not the US - Yet (theverge.com) 88

Netflix is expanding its paid password sharing to subscribers in Canada, New Zealand, Portugal, and Spain starting Wednesday, the company announced in a blog post. From a report: The company had already started testing the change -- in a few different forms -- in some countries in Latin America. Now, Netflix is expanding its efforts ahead of a broader rollout in "the coming months." Last week, Netflix faced pushback after notes about when and how it might block devices used beyond your household popped up on support pages for the US and other countries where the new "paid sharing" setup hasn't rolled out yet.

Netflix said that was inadvertent, and now none of the support pages have any details about restrictions on streaming to devices that aren't on your home network. No matter what country you select, it only says, "A Netflix account is meant to be shared in one household (people who live in the same location as the account owner). People who are not in your household will need to sign up for their own account to watch Netflix."

Android

Bloatware Pushes the Galaxy S23 Android OS To an Incredible 60GB (arstechnica.com) 92

An anonymous reader quotes a report from Ars Technica: As a smartphone operating system, Android strives to be a lightweight OS so it can run on a variety of hardware. The first version of the OS had to squeeze into the T-Mobile G1, with only a measly 256MB of internal storage for Android and all your apps, and ever since then, the idea has been to use as few resources as possible. Unless you have the latest Samsung phone, where Android somehow takes up an incredible 60GB of storage. Yes, the Galaxy S23 is slowly trickling out to the masses, and, as Esper's senior technical editor Mishaal Rahman highlights in a storage space survey, Samsung's new phone is way out of line with most of the ecosystem. Several users report the phone uses around 60GB for the system partition right out of the box. If you have a 128GB phone, that's nearly half your storage for the Android OS and packed-in apps. That's four times the size of the normal Pixel 7 Pro system partition, which is 15GB. It's the size of two Windows 11 installs, side by side. What could Samsung possibly be putting in there?!

We can take a few guesses as to why things are so big. First, Samsung is notorious for having a shoddy software division that pumps out low-quality code. The company tends to change everything in Android just for change's sake, and it's hard to imagine those changes are very good. Second, Samsung may want to give the appearance of having its own non-Google ecosystem, and to do that, it clones every Google app that comes with its devices. Samsung is contractually obligated to include the Google apps, so you get both the Google and Samsung versions. That means two app stores, two browsers, two voice assistants, two text messaging apps, two keyboard apps, and on and on. These all get added to the system partition and often aren't removable.

Unlike the clean OSes you'd get from Google or Apple, Samsung sells space in its devices to the highest bidder via pre-installed crapware. A company like Facebook will buy a spot on Samsung's system partition, where it can get more intrusive system permissions that aren't granted to app store apps, letting it more effectively spy on users. You'll also usually find Netflix, Microsoft Office, Spotify, Linkedin, and who knows what else. Another round of crapware will also be included if you buy a phone from a carrier, i.e., all the Verizon apps and whatever space they want to sell to third parties. The average amount users are reporting is 60GB, but crapware deals change across carriers and countries, so it will be different for everyone.

Media

Disney Explores the Sale of More Films and TV Series To Rivals (bloomberg.com) 66

An anonymous reader quotes a report from Bloomberg: Walt Disney Co. is exploring more licensing of its films and television series to rival media outlets as pressure grows to curb the losses in its streaming TV business. The Burbank, California-based entertainment giant is seeking to earn more cash from its content library, according to people familiar with the discussions who asked not to be identified as the talks are private. The move would represent a shift in strategy, as Disney has in recent years tried to keep much of its original programming exclusively on its Disney+ and Hulu streaming services. [CEO Bob Iger], 71, will share more of his plans when the company reports financial results on Feb. 8, but he has already taken steps to reverse decisions made by his predecessor. He offered free photos and more lower-price tickets to theme-park guests irked by rising fees.

Although Disney already licenses some titles to other platforms including Amazon's Prime streaming service, it began to hoard content with the launch of Disney+ in 2019. Disney curtailed licensing of its own programs to third parties to boost that service. A deal that had Disney films running on Netflix was phased out, and the company touted how much of its new programming came from its own in-house studios. Wall Street cheered at the time because it meant the company was entirely focused on building out the streaming business. The shift was costly, however, as Disney surrendered billions of dollars from home video sales and licensing deals with other networks.

IT

Netflix Says Strict New Password Sharing Rules Were Posted in Error (appleinsider.com) 58

New Netflix rules that would have enforced a limitation on users' sharing passwords are reportedly a mistake and don't apply in the US -- for now. From a report: Netflix has long been planning to cut down on password sharing, or letting friends share one paid account. The company appeared to go further, however, with the inclusion in its help pages of a new set of rules.

Broadly, anyone at a subscriber's physical address could continue using the service. But the paying subscriber would have to confirm every 31 days that a user away from their residence -- such as at college -- was part of the household. According to The Streamable, Netflix says it was all a mistake -- for the United States. "For a brief time yesterday, a help center article containing information that is only applicable to Chile, Costa Rica, and Peru, went live in other countries," a Netflix spokesperson told the publication. "We have since updated it."

Anime

Netflix Made an Anime Using AI Due To a 'Labor Shortage,' and Fans Are Pissed (vice.com) 142

An anonymous reader quotes a report from Motherboard: Netflix created an anime that uses AI-generated artwork to paint its backgrounds -- and people on social media are pissed. In a tweet, Netflix Japan claimed that the project, a short called he Dog & The Boy uses AI generated art in response to labor shortages in the anime industry. "As an experimental effort to help the anime industry, which has a labor shortage, we used image generation technology for the background images of all three-minute video cuts!" the streaming platform wrote in a tweet.

The tweet drew instant criticism and outrage from commenters who felt that Netflix was using AI to avoid paying human artists. This has been a central tension since image-generation AI took off last year, as many artists see the tools as unethical -- due to being trained on masses of human-made art scraped from the internet -- and cudgels to further cut costs and devalue workers. Netflix Japan's claim that the AI was used to fill a supposed labor gap hit the bullseye on these widespread concerns. According to a press release, the short film was created by Netflix Anime Creators Base -- a Tokyo-based hub the company created to bolster its anime output with new tools and methods -- in collaboration with Rinna Inc., an AI-generated artwork company, and production company WIT Studio, which produced the first three seasons of Attack on Titan.
"Demand for new anime productions has skyrocketed in recent years, but the industry has long been fraught with labor abuses and poor wages," notes Motherboard's Samantha Cole. "In 2017, an illustrator died while working, allegedly of a stress-induced heart attack and stroke; in 2021, the reported salary of low-rung anime illustrators was as little as $200 a month, forcing some to reconsider the career as a sustainable way to earn a living while having a life outside work, buying a home, or supporting children.

"Even top animators reportedly earn just $1,400 to $3,800 a month -- as the anime industry itself boomed during the pandemic amid a renewed interest in at-home streaming. In 2021, the industry hit an all-time revenue high of $18.4 billion."
The Internet

Netflix Unveils Plans To Prevent Password Sharing (ign.com) 150

Netflix has unveiled its plans to prevent password sharing between people in households outside of an account owner's primary location. From a report: As reported by gHacks, the streaming service has detailed how it aims to crackdown on account sharing in an updated FAQ. The information varies between countries, but it looks like the company will be paying careful attention to the devices used to log in to accounts from now on. The FAQ pages for US and UK subscribers currently highlight that devices may require verification if they are not associated with the Netflix household or if they attempt to access an account outside the subscriber's primary location for an extended period of time.

The FAQ pages for countries where Netflix is testing extra membership fees for account sharing have tweaked the rules. The Costa Rican Help Center states that devices must connect to the Wi-Fi at the primary location and watch something on Netflix "at least once every 31 days." The company will use information "such as IP addresses, device IDs, and account activity" to determine whether a device signed into an account is connected to the primary location. A device may be blocked from watching Netflix if it's deemed to fall outside of the household. As further set out in the guidelines, if you are the primary account owner and you find yourself travelling between locations, you can request a temporary code to access Netflix for seven consecutive days. Alternatively, you can update your primary location if it has changed.

Television

'Nothing, Forever' Is an Endless 'Seinfeld' Episode Generated By AI (vice.com) 63

An anonymous reader quotes a report from Motherboard: Four pixelated cartoon characters talk to each other about coffee, Amazon deliveries, and veganism as they stand apart in a decorated NYC apartment. There is one woman and three men who seem to be the animated versions of Seinfeld's main characters, Elaine, Jerry, George, and Kramer. But unlike Seinfeld, these characters are set in a modern-era NYC, and their voices and bodies look and sound robotic. That's because "Nothing, Forever" is a live-streaming show that's almost entirely generated by algorithms. It's been streaming non-stop on Twitch since December 14. [...] Skyler Hartle, the co-creator of "Nothing, Forever," told Motherboard that the show was created as a parody to Seinfeld. "The actual impetus for this was it originally started its life as this weird, very, off-center kind of nonsensical, surreal art project," Hartle said. "But then we kind of worked over the years to bring it to this new place. And then, of course, generative media and generative AI just kind of took off in a crazy way over the past couple of years."

Hartle and his co-creator, Brian Habersberger, used a combination of machine learning, generative algorithms, and cloud services to build the show. Hartle told Motherboard that the dialogue is powered by OpenAI's GPT-3 language model and that there is very little human moderation of the stream, outside of GPT-3's built-in moderation filters. "Aside from the artwork and the laugh track you'll hear, everything else is generative, including: dialogue, speech, direction (camera cuts, character focus, shot length, scene length, etc), character movement, and music," one of the creators wrote in a Reddit comment. [...] Hartle also said that unlike most television shows, "Nothing, Forever" is able to change based on people's feedback that is received through the Twitch stream chat. "The show can effectively change and the narrative actually evolves based on the audience. One of the major factors that we're thinking about is how do we get people involved in crafting the narrative so it becomes their own," he said.
"As generative media gets better, we have this notion that at any point, you're gonna be able to turn on the future equivalent of Netflix and watch a show perpetually, nonstop as much as you want. You don't just have seven seasons of a show, you have seven hundred, or infinite seasons of a show that has fresh content whenever you want it. And so that became one of our grounding pillars," Hartle said. "Our grounding principle was, can we create a show that can generate entertaining content forever? Because that's truly where we see the future emerging towards. Our goal with the next iterations or next shows that we release is to actually trade a show that is like Netflix-level quality."
Anime

Netflix's Live-Action One Piece Series Is Coming In 2023 (theverge.com) 31

Netflix has confirmed that its live-action take on One Piece will be streaming in 2023. The Verge reports: That's about all we know so far; Netflix didn't give a specific date, though the company did show off a new poster for its adaptation of Eiichiro Oda's long-running pirate manga / anime. The adaptation was first announced back in 2020 and will be led by showrunners Matt Owens and Steven Maeda. The main cast includes the likes of Inaki Godoy as Luffy (who you can see the back of in the new poster), Mackenyu as Zoro, Emily Rudd as Nami, Jacob Romero Gibson as Usopp, and Taz Skylar as Sanji. The Verge notes that One Piece "follows some less-than-impressive live-action anime adaptations from Netflix, including a Death Note film and a Cowboy Bebop series that was canceled after one season."
EU

EU Weighs Proposal To Charge Data-Heavy Streamers for Telecom Upgrades (bloomberg.com) 62

The European Union is weighing a proposal to make technology companies that use the most bandwidth, like Netflix and Alphabet, to help pay for the next generation of internet infrastructure, according to a draft document seen by Bloomberg. From the report: The suggestions are part of a "fair-share" vision from the EU's executive arm that could require large tech businesses, which provide streaming videos and other data-heavy services, to help pay for the traffic they generate.

The draft document, which is part of a consultation with the industry, suggested firms might contribute to a fund to offset the cost of building 5G mobile networks and fiber infrastructure, as well as the creation of a mandatory system of direct payments from tech giants to telecom operators. The commission also asked companies whether there should be a threshold that would qualify a company to be a "large traffic generator," the document showed. That could be similar to the European governing body's rules designating some tech companies "gatekeepers" and "very large online platforms" in its recent competition and online content rules.

Robotics

Even Reality TV Hosts Are Being Replaced By Robots (vice.com) 56

An anonymous reader quotes a report from Motherboard, written by Katie Way: MILF Manor is a reality TV show made to be dissected on the internet. Everything, from its ripped-from-30-Rock title to the Oedipal set-up of mothers and their sons thrown into the same "dating pool," is so patently outrageous that it boomerangs back into normalcy -- of course these mothers need to participate in a blindfolded contest to identify their sons by their abs alone. But MILF Manor's most understated quirk is the one that sticks out to me: There's no tanned, vaguely handsome man with veneers and a dress shirt directing the festivities. Instead, contestants receive alerts and directions via text, on iPhones in magenta cases that seem to be provided by the producers. Like more and more reality TV competition shows, there's no actual host.

By my estimation, Netflix's The Circle kicked the trend off in 2020. Its contestants, who compete to create the most lovable social media presence in physical isolation, receive prompts and challenges from a big-screen TV in their living quarters. Pressure Cooker, a more recent offering from the streaming giant, is a cooking competition show where the host is replaced by a kitchen ticket printer: Competitions receive challenge instructions and the results of game-ending votes in the same way chefs take orders from their diners. The Button, a YouTube speed dating series by the production company Cut, goes a step further with the introduction of a large talking button that cracks jokes and prompts daters to ask each other cringe-worthy questions until one of them presses it, ending the date and sending in another option.

Why axe the role of host when it's been a staple of the formula for so long? It could be a sign of the recession. Reality TV competition shows are famously among the cheapest television to produce, but if I've learned anything about business, it's that executives have never met a corner they're not dying to cut. It could also be that the role of reality TV host is not attracting the same iconic cultural figures it once was, when the subgenre exploded in popularity in the early 2000s. [...] At the core, though, I believe there's something more insidious at play: Robots are once again stealing jobs from red-blooded human workers. Only this time, instead of factory linemen or fast food cashiers, these laborers are C-List comedians and guys who are incredibly symmetrical but not quite hot. (Again, Jeff Probst, I am not talking about you!) Sure, I know machine intelligence doesn't experience emotion -- yet! -- and I know that all of these robo-hosts are likely operated by producers -- for now! But isn't toying with people in a high-stress, high-stakes situation, the exact job description of a reality competition host, the absolute dream gig for a robot? Seems a little too perfect.
"Experts already predict that AI and machine learning could replace people working as couriers, investment analysts, and customer service representatives," concludes Way. "Adding reality competition show hosts to that list means the creep into our cultural landscape has already started, which is a distinctly scary thought, in my book. Our flesh is weak, our MILFs are fragile, and we are so, so vulnerable to the clinical calculations of our machine overlords -- uh, I mean, hosts."
Classic Games (Games)

Chess.com Visits Spike with New Cat-Themed AI Bot Named 'Mittens' (deseret.com) 29

On New Year's Day, Chess.com launched five chess-playing bots — each with a cat persona. But the Deseret News reports that something unexpected happened with "Mittens"... Interest generated by Mittens is outpacing the surge that came on the heels of the wildly popular, chess-centric Netflix miniseries from 2020, "The Queen's Gambit". Chess.com has averaged 27.5 million games played per day in January and is on track for more than 850 million games this month — 40% more than any month in the company's history, per the Wall Street Journal.
A Chess.com team developed a special passive-aggressive personality for Mittens, according to the article. The team "thought it would be 'way more demoralizing and funny' if, instead of simply smashing opponents, Mittens ground down opposing players through painstaking positional battles, similar to the tactics Russian grandmaster Anatoly Karpov used to become world champion, per the Journal."

The Journal adds: "This bot is a psycho," the streamer and International Master Levy Rozman tweeted after a vicious checkmate this month. A day later, he added, "The chess world has to unite against Mittens." He was joking, mostly.

Mittens is a meme, a piece of artificial intelligence and a super grandmaster who also happens to reflect the broader evolution in modern chess. The game is no longer old, stuffy and dominated by theoretical conversations about different lines of a d5 opening. It's young, buzzy and proof that cats still rule the internet....

"I am inevitable. I am forever. Meow. Hehehehe," Mittens tells her opponents in the chat function of games....

Getting absolutely creamed by Mittens might get old. But her surprising popularity speaks to an underlying current in the chess world as freshly minted fans flow in: people are endlessly curious about new ways to engage with the ancient game. Facing novelty bots is just one of them. There has also been a new wave of interest in previously obscure chess variants. Chess960, for instance, is a version of the game where all the non-pawn pieces are lined up in random order on the back rank.... Other variants include: "Fog of War," where players have a limited view of their opponents' pieces; "Bughouse Chess," which is played across two boards with captured pieces potentially moving from one to the other; and "Three Check," where the objective is simply to put the opposing king in check three times.

The wackiest of all is the chess variant known as Duck Chess. It looks mostly like regular chess — 64 squares and 32 pieces. But it also has one rubber ducky on the board. After every move in Duck Chess, the player moves the titular object to a new square of the board where it blocks pieces in its path. Good luck moving your bishop when there's a duck squatting on its diagonal.

Television

Streaming Free: 'Three-Body Problem' Sci-Fi Novel Adaptation by Tencent Video (esquireme.com) 64

"One of the most beloved sci-fi novels of the 21st century finally has been adapted for television to huge acclaim," writes Esquire, "and it's out now." Their article includes embedded videos of Tencent Video's live-action adaptation of Three-Body Problem, which is streaming free on YouTube with English subtitles. "They're already getting great reviews online, with an 8.7 IMDb score for the adaptation that is being acclaimed for its faithfulness to the original bestselling novel."

Long-time Slashdot reader gordm writes: The YouTube playlist offers the first 4 episodes (of a 30 episode series) for free, although the videos include Chinese ads.... Be sure your YouTube subtitles are turned on.

I've only watched episode one and noted the most unpleasant reaction I had during my first-read of the book is front-loaded into episode one of the show... that is, it is suggested GMO and advanced technologies are a blight upon humanity. I kept reading, and I'm glad I did. But for any viewers put off by that moment, and not knowing what Three-Body Problem is about... that moment pays off later.

Esquire calls the original book "not only the most successful Chinese science fiction novel of the century so far, but likely the most successful and acclaimed science fiction series in the world since 2000, winning the Hugo Award and the Nebula Award for Best Novel..."

Netflix says its own adaptation of Three-Body Problem will also be released before the end of 2023.
Businesses

Netflix Founder Reed Hastings Stepping Down As CEO (reuters.com) 14

Netflix co-founder Reed Hastings announced on Thursday he will step down as chief executive, handing the reins of the streaming service to his longtime partner and co-CEO, Ted Sarandos, and the company's chief operating officer, Greg Peters. Reuters reports: Sarandos and Peters will share the title of chief executives, with Hastings serving as executive chairman. The change is effective immediately, representing the culmination of a decade of succession planning by the board. Both Peters and Sarandos were promoted in July 2020, amid a challenging time for the company. "It was a baptism by fire, given Covid and recent challenges within our business," Hastings wrote in a blog post announcing his departure. "But they've both managed incredibly well ... so the board and I believe it's the right time to compete my succession."
Television

Netflix Set For Slowest Revenue Growth As Ad Plan Struggles To Gain Traction (reuters.com) 48

Netflix is expected to report its slowest quarterly revenue growth on Thursday as its ad-supported plan struggles to attract customers in the saturating U.S. market, which could pressure the company to pull back on content spending this year. Reuters reports: The streaming pioneer has been reeling under strained consumer spending, rising costs of financing production and increased competition from Disney+ and Amazon Prime. It had pinned its hopes on the launch of the ad-supported tier, but analysts say they have not seen a burst of subscriptions.

The company is expected to have added 4.5 million subscribers in the fourth quarter - the lowest addition for the holiday period since 2014. It added 8.3 million subscribers a year ago. The $6.99 per month ad-supported plan does not have access to all titles and is not cheap enough to win over significant numbers of customers in the United States and Canada, analysts say. That is likely to draw focus on Netflix's aggressive content spending, which finance chief Spencer Neumann said in July would total about $17 billion annually for the next couple of years.

The Internet

Internet Providers Warn Against EU Plans To Make Big Tech Cover Telcos Costs (reuters.com) 54

A group representing internet service providers across Europe said on Tuesday that a proposal to make Big Tech companies pay towards telecom operators' network costs could create systemic weakness in critical infrastructure. From a report: Telecom operators have been pushing the European Union to implement new laws that would see U.S. tech firms like Alphabet's Google, Meta's Facebook, and Netflix bear some of the costs of Europe's telecoms network, arguing that they drive much of the region's internet traffic.

In September, European Commission's industry chief Thierry Breton said he would launch a consultation on so-called "fair share" payments in early 2023, before proposing legislation. Now, the European Internet Exchange Association said the proposals risked reducing the quality of service for internet users across Europe, and could "accidentally create new systemic weaknesses" in critical infrastructure, in a letter addressed to the European Commission's industry chief Thierry Breton and the Executive Vice President Margrethe Vestager.

Television

The Hidden Cost of Cheap TVs (theatlantic.com) 222

Perhaps the biggest reason TVs have gotten so much cheaper than other products is that your TV is watching you and profiting off the data it collects. From a report: Modern TVs, with very few exceptions, are "smart," which means they come with software for streaming online content from Netflix, YouTube, and other services. Perhaps the most common media platform, Roku, now comes built into TVs made by companies including TCL, HiSense, Philips, and RCA. But there are many more operating systems: Google has Google TV, which is used by Sony, among other manufacturers, and LG and Samsung offer their own.

Smart TVs are just like search engines, social networks, and email providers that give us a free service in exchange for monitoring us and then selling that info to advertisers leveraging our data. These devices "are collecting information about what you're watching, how long you're watching it, and where you watch it," Willcox said, "then selling that data -- which is a revenue stream that didn't exist a couple of years ago." There's nothing particularly secretive about this -- data-tracking companies such as Inscape and Samba proudly brag right on their websites about the TV manufacturers they partner with and the data they amass.

The companies that manufacture televisions call this "post-purchase monetization," and it means they can sell TVs close to at cost and still make money over the long term by sharing viewing data. In addition to selling your viewing information to advertisers, smart TVs also show ads in the interface. Roku, for example, prominently features a given TV show or streaming service on the right-hand side of its home screen -- that's a paid advertisement. Roku also has its own ad-supported channel, the Roku Channel, and gets a cut of the video ads shown on other channels on Roku devices.

Businesses

'Lifetime Value' Is Silicon Valley's Next Buzzword (reuters.com) 32

So long, "total addressable market." Farewell, "flywheel effect." Silicon Valley has a new buzzword. As the cost of signing up new customers rises, "lifetime value" is set to become must-use jargon for technology executives, investors and analysts in 2023. Reuters reports: Companies like Uber, DoorDash and Spotify want shareholders to know they can squeeze more revenue out of users than it costs to recruit them. As with previously popular jargon, though, the idea can quickly get garbled. The concept of lifetime value is not new, but a common definition remains elusive. The venture capitalist Bill Gurley defines it as "the net present value of the profit stream of a customer." Hollywood uses it to estimate the cumulative income from streaming movie titles, after deducting the cost of making the film.

It's catching on in the tech world. Uber boss Dara Khosrowshahi and his team invoked (PDF) the term seven times during the ride-hailing firm's investor day. At a similar event in June executives from music streaming service Spotify mentioned (PDF) it 14 times, with another 47 references to the abbreviation LTV. Earnings transcripts for 4,800 U.S.-listed companies analyzed by Bedrock AI show executives and analysts mentioned "lifetime value" over 500 times between October and mid-December, up from just 47 times in three months to March 2019.

The problem is that everyone seems to have a different definition of lifetime value. Food delivery firm DoorDash looks at it as a metric to measure "customer retention, order frequency, and gross profit per order" over a fixed payback period. Uber and its Southeast Asian peer Grab treat it as the ability to bring in one customer and then cross-sell different services at a lower cost. The $49 billion e-commerce firm Shopify defines lifetime value as the total amount of money a customer is expected to spend with the business over the course of an "average business relationship." But lifetime value isn't a silver bullet, as Gurley noted a decade ago. As capital becomes more scarce, generating free cash flow remains the most important target. As with previous buzzwords, investors may find that references to lifetime value do more to confound than clarify.

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