Many commercials continue to play on ad-supported streaming services after viewers turn off their television, new research shows, a problem that is causing an estimated waste of more than $1 billion a year for brands. From a report: The findings come as an ever-growing share of ad dollars is shifting from traditional TV to streaming platforms, a trend that is likely to accelerate now that industry giants Netflix and Walt Disney's Disney+ have embraced the idea of offering an ad-supported version of their services. Some 17% of ads shown on televisions connected through a streaming device -- including streaming boxes, dongles, sticks and gaming consoles -- are playing while the TV is off, according to a study by WPP's ad-buying giant GroupM and ad-measurement firm iSpot.tv.

That is because when a TV set is turned off, it doesn't always send a signal to the streaming device connected to the TV through its HDMI port, GroupM said. As a result, the streaming device will continue playing the show and its ads unless users had exited or paused the streaming app they were watching before turning off their TV. Due to the nature of the problem, using a smart TV -- on which streaming apps are loaded -- makes it far less likely that ads would be shown while the TV is off, since in this instance the television and streaming device are just a single piece of hardware. GroupM said it found "virtually no incidence" of the issue on smart TV apps. The study, which included smart TVs and some hooked up with a streaming device, found that on average, between 8% and 10% of all streaming ads were shown while the TV was off.

PlayStation's revamped version of its video game subscription service went live on Monday, giving members access to a catalog of several hundred games both new and old. From a report: PlayStation Plus, once code-named Spartacus, is Sony Group's attempt to compete with rival Microsoft's popular Xbox Game Pass as both publishers jockey to be the Netflix of video games. The new service combines Sony's previous subscription offerings into a three-tiered system. The most basic level, Essential, costs $10 a month and replaces the old PlayStation Plus, offering two downloadable games per month, a smattering of discounts and access to online multiplayer games. It's the top two tiers that are new for PlayStation users. The Extra tier, at $15 a month, offers a library of about four hundred PlayStation 4 and 5 games, while the $18 a month Premium level adds a few hundred classic games to the pool, mostly from the PlayStation 3. The service only has around thirty PS1, PS2 and PSP games, which has been a disappointment for retro gamers.

An anonymous reader shares a report: At Roku, a video-streaming platform operator that's suffered a punishing stock plunge, employees are buzzing about the possibility of an acquisition -- and their talk and hopes are pinned on Netflix. Employees at Roku have been discussing the possibility of a Netflix acquisition in recent weeks, according to people familiar with the matter. The chatter comes as Roku's stock has dropped about 80% since late July on weaker demand for video streaming and lower set-top-box sales.

Roku competes with Apple, Amazon, Google, and Samsung in the market for streaming devices, and some of those industry titans are battling with the smaller company for lucrative video-ad dollars. The collapse in Roku's stock made it hard to compete with its larger tech rivals on pay in a tight labor market. The result has been a staggering increase in equity grants to employees, leaving Roku well underwater on stock-based compensation. Roku has been seen as an acquisition target before -- including last year, when, according to The Wall Street Journal, Comcast CEO Brian Roberts considered purchasing the company. In January, the departure of a top Roku executive stoked questions about the company's future.

It's been a bumpy ride for Netflix recently, and the announcement that it will be charging for password sharing hasn't gone as smoothly as it might have hoped, a new report claims. TechCrunch: Subscribers in Peru who were opted in to new password-sharing restrictions have reported confusion over Netflix's loose definition of "household" and noted the lack of clarity around the differing charges imposed on consumers. Global tech news site Rest of World informally surveyed more than a dozen Netflix users in Peru, after Netflix's March announcement that it would be asking customers in the country -- as well as in Chile and Costa Rica -- to pay extra when sharing their account passwords outside their homes. Central and South America represent Netflix's lowest revenue per user, which helps to explain the markets' selection.

The majority of those surveyed by Rest of World in Peru said that they have still not received uniform messaging around the new charges, even though it's been over two months after the policy was first announced. Some subscribers experienced the price increase and then canceled their Netflix accounts as a result. But others who ignored the message about the new policy were able to share their accounts across households without an extra charge, they claimed.

California could soon hold social media companies responsible for harming children who have become addicted to their products, permitting parents to sue platforms like Instagram and TikTok for up to $25,000 per violation under a bill that passed the state Assembly on Monday. The Associated Press reports: The bill defines "addiction" as kids under 18 who are both harmed -- either physically, mentally, emotionally, developmentally or materially -- and who want to stop or reduce how much time they spend on social media but they can't because they are preoccupied or obsessed with it. Business groups have warned that if the bill passes, social media companies would most likely cease operations for children in California rather than face the legal risk.

The proposal would only apply to social media companies that had at least $100 million in gross revenue in the past year, appearing to take aim at social media giants like Facebook and others that dominate the marketplace. It would not apply to streaming services like Netflix and Hulu or to companies that only offer email and text messaging services. [...] The bill gives social media companies two paths to escape liability in the courts. If the bill becomes law, it would take effect on Jan. 1. Companies that remove features deemed addictive to children by April 1 would not be responsible for damages. Also, companies that conduct regular audits of their practices to identify and remove features that could be addictive to children would be immune from lawsuits. "Monday's vote is a key -- but not final -- step for the legislation," adds the report. "The bill now heads to the state Senate, where it will undergo weeks of hearings and negotiations among lawmakers and advocates. But Monday's vote keeps the bill alive this year."

Y Combinator, a Silicon Valley kingmaker, is advising its portfolio founders to "plan for the worst" as startups across the globe scramble to navigate a sharp reversal after a 13-year bull run. From a report: The investment firm -- whose early backings include investments in Dropbox, Coinbase, Airbnb and Reddit -- this week suggested startups to cut their expenses and focus on extending their runways within the next 30 days. Those who don't have the runway to "reach default alive," the firm said in the letter, titled "Economic Downturn," YC is strongly suggesting that they consider raising money.

"If your plan is to raise money in the next 6-12 months, you might be raising at the peak of the downturn. Remember that your chances of success are extremely low even if your company is doing well. We recommend you change your plan," it said. The note from YC, which backs hundreds of young startups a year, is a signal that the market teardown that has significantly slashed the value of a large number of tech companies including giants such as Shopify and Netflix in recent weeks is trickling down to the early-stage startups universe.

Netflix lost 200,000 subscribers last quarter and potentially two million this current period, according to a note to shareholders from last month. Now, new research highlights that the number of long-standing subscribers canceling Netflix rose precipitously in the past few years. 9to5Mac reports: The data provided by the research firm Antenna to The Information shows that people who had been subscribers for more than three years accounted for just 5% of total cancelations at the start of 2022, while it hit 13% in the first quarter of 2022: "Newbie subscribers, meantime, accounted for only 60% of cancellations in the quarter, down from 64% in the fourth quarter. Also in the first quarter, overall cancellations rose to 3.6 million people, compared with around 2.5 million in each of the preceding five quarters. Antenna says it draws its data from a panel of 5 million Americans who anonymously contribute their streaming subscriptions."

While Netflix is losing ground, the streaming market as a whole is gaining more subscribers, and Antenna's data suggest a connection between the price increase and Netflix's subscriber losses: "'Consumers vote with their wallets on a monthly basis, and now there are just more viable candidates on the ballot,' said Brendan Brady, media and entertainment lead at Antenna. Also, since many entertainment companies, like NBCUniversal and Disney, have pulled their shows off Netflix and put them on their own services, Netflix has had to rely more on its originals, which have been hit or miss, he said."

According to Variety, a new series of "Black Mirror" is in the works at Netflix. From the report: It's been almost three years since Season 5 of the dystopian drama premiered on the streaming service in June 2019, but sources indicate that a new anthology series of "Black Mirror" is shaping up, and casting is now underway. While details about specific stories are being kept under lock and key, Variety understands that Season 6 will have more episodes than Season 5, which comprised of just three instalments and starred Andrew Scott, Anthony Mackie, Yahya Abdul-Mateen II, Topher Grace and Miley Cyrus. A source close to the production tells Variety that the latest season is even more cinematic in scope, with each installment being treated as an individual film. This is, of course, in line with recent seasons of "Black Mirror," for which episodes usually exceeded 60 minutes and had incredibly high production values.

Netflix is going live for the first time. From a report: Deadline understands that the streamer is exploring the launch of live streaming. It plans to roll out the capability, which Netflix confirmed was in the early stages of development, for its swathe of unscripted shows and stand-up specials. It would mean that Netflix would be able to use it for live voting for competition series and talent contests such as its upcoming dance competition series Dance 100 from The Circle producer Studio Lambert. Similarly, it could use it if it decides to bring back its Netflix Is A Joke festival. The live comedy event featured around 300 stand-up performances across LA including Dave Chappelle, Larry David and Pete Davidson. Many of the shows were being filmed with plans to air around 12 of them on the service. In future, it could potentially air shows live, albeit with a few seconds delay in case things get saucy.

Disney added 7.9 million new subscribers to its Disney Plus streaming service during the first three months of 2022, the company announced (PDF) in its Q2 earnings report on Wednesday. The Verge reports: That brings the total to around 87.6 million worldwide, excluding the 50.1 million people subscribed to Disney Plus Hotstar internationally. In the US and Canada alone, Disney Plus now has 7.1 million more subscribers than it did a year ago, with 44.4 million. The company also said that the number of subscribers for all of its streaming offerings -- including Hulu and ESPN Plus -- had grown to over 205 million, an increase from the 196.4 million it reported in January.

Disney also reports that it's earning more per Disney Plus subscriber than it had been previously, at least in the US. Where its average monthly revenue per paid subscriber used to be $6.01, it's now sitting at $6.32. Disney says this is thanks to "an increase in retail pricing and a lower mix of wholesale subscribers." Despite this, Disney Plus is actually losing the company money at a greater clip than it was before. Disney says this is thanks to higher costs for production, advertising, and technology. Those costs seem unlikely to go down, and raising prices, like Netflix did, could cut off its subscriber growth. All that put together makes it obvious why Disney is looking at creating an ad-supported tier sooner rather than later.

Netflix could introduce its lower-priced ad-supported tier by the end of the year, a more accelerated timeline than originally indicated, the company told employees in a recent note. From a report: In the note, Netflix executives said that they were aiming to introduce the ad tier in the final three months of the year, according to two people who shared details of the communication, speaking on condition of anonymity to describe internal company discussions. The note also said that they were planning to begin cracking down on password sharing among its subscriber base around the same time, the people said.

Last month, Netflix stunned the media industry and Madison Avenue when it revealed that it would begin offering a lower-priced subscription featuring ads, after years of publicly stating that commercials would never be seen on the streaming platform. But Netflix is facing significant business challenges. In announcing first quarter earnings last month, Netflix said that it lost 200,000 subscribers in the first three months of the year -- the first time that has happened in a decade -- and expected to lose two million more in the months to come. Since the subscriber announcement, Netflix's share price has dropped sharply, wiping away roughly $70 billion in the company's market capitalization.

Investors are divided about whether technology companies are set for a deep retrenchment or if growth is simply slowing from pandemic highs. From a report: The technology industry, which powered the U.S. economy during the pandemic and grew at tremendous scale during a decade of ultralow interest rates, is confronting one of the most punishing stretches in years. Global powerhouses and fledgling startups are feeling pain from a variety of economic, industry and market factors, spawning postpandemic turbulence in e-commerce, digital advertising, electric vehicles, ride-hailing and other segments. Companies that emerged as job-creating juggernauts in the past two years -- collectively adding hundreds of thousands of workers to their payrolls in engineering, warehouse and delivery jobs -- have begun to freeze hiring or even lay off employees.

Concerned that some of the forces that have propelled tech ever upward have begun to fade, investors have sent share prices for a number of companies, including Lyft and Peloton plunging on disappointing financial results or other news. The stocks of Netflix, Facebook parent Meta Platforms and Amazon.com all are down more than 30% this year, exceeding the more-than-13% drop in the S&P 500. Investors are divided on the question of whether the slowdown is temporary -- as well-positioned companies work through a period of stagnation after expanding ultrafast in recent years -- or if these are the early signs of a deeper retrenchment for the industry and its investors.

Doctor Who's newest incarnation has been announced. Replacing Jodie Whittaker — and becoming the 14th Doctor Who — is 29-year-old Netflix star Ncuti Gatwa. (In 2020 the Scottish branch of the British Academy of Film and Television Arts awarded him the prestigious "Best Actor in Television" award for work on the Netflix series Sex Education.) Fun fact: he also voiced the lead driver in Electronic Arts' racing videogame Grid Legends, according to Wikipedia.

In a BBC press release, he described himself as "a mix of deeply honoured, beyond excited and of course a little bit scared" to take over the long-running part of the TARDIS-traveling Time Lord, according to CNN.

"This role and show means so much to so many around the world, including myself, and each one of my incredibly talented predecessors has handled that unique responsibility and privilege with the utmost care. I will endeavour my utmost to do the same." "Doctor Who" showrunner Russell T Davies said in the press release: "Sometimes talent walks through the door and it's so bright and bold and brilliant, I just stand back in awe and thank my lucky stars.

"Ncuti dazzled us, seized hold of the Doctor and owned those TARDIS keys in seconds."

Gatwa joins the long-running sci-fi series — which follows an alien Time Lord who travels across space and time — ahead of its 60th anniversary in 2023.

Since Microsoft's Xbox Cloud Gaming launched two years ago, more than 10 million people worldwide have streamed games through the service. That number's likely to jump a bit higher as a result of a partnership Microsoft struck with Epic Games to offer Epic's hit title Fortnite for free through Xbox Cloud Gaming. From a report: The move will effectively let people play Fortnite in a way similar to how they stream videos from companies like Netflix, regardless of how beefy their gaming device is. Unlike previous efforts, Microsoft said this agreement applies to anyone who wants to play, with or without a subscription. Gamers will be able to play on an iPhone or iPad or a device powered by Google's Android software, even though both Apple and Google have banned Fortnite from their respective app stores amid an ongoing legal dispute. "This is just the beginning for us -- we're going to learn, implement feedback, and in time look to bring even more free-to-play titles to players through the cloud," Microsoft said in a statement. The service will be available for free in 26 countries, including Australia, Brazil, Japan, Mexico and the US.

A Bloomberg opinion columnist calls the RobinHood stock-trading app "a symbol of the 'memestock' boom that galvanized a generation of bored locked-down day traders.

"But judging by the company's latest figures, the mania is over." In the first quarter, Robinhood's monthly active users fell 10% year-on-year to 15.9 million, the lowest since the end of 2020. It's a loose metric, to be sure, covering debit-card swipes and webpage log-ins. Net funded accounts have held steady, but activity is flatlining: Transaction revenues fell by almost half, and average quarterly revenue per user slumped 61% to $53. In a post-lockdown era of rising inflation, consumers have less money and fewer hours to spare. Eyeballs and finger-swipes are not guaranteed.

This will put Robinhood's premium "tech" valuation — around seven times annual revenue, a higher multiple than Meta Platforms Inc.'s — under extra pressure. Shares of the financial-services company have already fallen 71% in six months, a drop that began well before Ukraine.

With fewer reasons to get excited about risky, hyped-up trades such as bitcoin (down 40% since October), the feedback loop of fear is spreading. Trading platform Coinbase Global Inc., which like Robinhood went public last year amid a retail-driven frenzy, is down 62%.

The average Robinhood user is 31 years old with an account balance of $240. It's a band of merry men (women are a minority on the platform) who dabble. While the company's business model differs from that of social-media and streaming apps, the reversal of fortunes looks a lot like the post-Covid "attention recession" that's also battering the likes of Netflix and Spotify Technology.
"The lost merry memestock men already appear disillusioned," the columnist argues. "What happens next, if speculative bets keep deflating, may swear them off trading for good."

But he also sees Robinhood is "talking up its appeal to paid 'Gold' customers and is launching a more diversified, bank-like suite of products. With its recent announcement of a new debit card, Robinhood no doubt aspires to become a super-app like unlisted fintech Revolut, valued at around $33 billion, according to CBInsights."

An anonymous reader quotes a report from The Verge: The EU has agreed on another ambitious piece of legislation to police the online world. Early Saturday morning, after hours of negotiations, the bloc agreed on the broad terms of the Digital Services Act, or DSA, which will force tech companies to take greater responsibility for content that appears on their platforms. New obligations include removing illegal content and goods more quickly, explaining to users and researchers how their algorithms work, and taking stricter action on the spread of misinformation. Companies face fines of up to 6 percent of their annual turnover for noncompliance.

"The DSA will upgrade the ground-rules for all online services in the EU," said European Commission President Ursula von der Leyen in a statement. "It gives practical effect to the principle that what is illegal offline, should be illegal online. The greater the size, the greater the responsibilities of online platforms." [...] Although the legislation only applies to EU citizens, the effect of these laws will certainly be felt in other parts of the world, too. Global tech companies may decide it is more cost-effective to implement a single strategy to police content and take the EU's comparatively stringent regulations as their benchmark. Lawmakers in the US keen to rein in Big Tech with their own regulations have already begun looking to the EU's rules for inspiration.

The final text of the DSA has yet to be released, but the European Parliament and European Commission have detailed a number of obligations it will contain [...]. Although the broad terms of the DSA have now been agreed upon by the member states of the EU, the legal language still needs to be finalized and the act officially voted into law. This last step is seen as a formality at this point, though. The rules will apply to all companies 15 months after the act is voted into law, or from January 1st, 2024, whichever is later. "Large online platforms like Facebook will have to make the working of their recommender algorithms (used for sorting content on the News Feed or suggesting TV shows on Netflix) transparent to users," notes The Verge. "Users should also be offered a recommender system 'not based on profiling.' In the case of Instagram, for example, this would mean a chronological feed (as it introduced recently)."

The tech giants will also be prohibited from using "dark patterns" -- confusing or deceptive UIs designed to steer users into making certain choices. A detailed list of obligations contained in the DSA can be found in the article.

As Netflix shares plunge to their lowest point in five years, the company risks losing its most valuable resource: its star employees. From a report: Working at Netflix has been one of the most desirable jobs in Hollywood, if not all of corporate America. The company ranks as one of the most beloved brands, pays well and offers a chance to work with the people that changed the way we watch TV. But a record decline in Netflix's share price, precipitated by its poor financial results, has shaken employees' confidence in the company's long-term trajectory. It has also erased the value of many employees' options. People who were sitting on tens or hundreds of thousands of dollars are left with nothing. More people are looking to leave Netflix right now than at any point in recent memory, current and former employees said this past week. Netflix employees also asked leadership to issue new stock grants to make them whole for the losses this past week, per The Information.

Thoughtworks is a technology consultancy/distributed agile software design company. The principle technologist in its CTO's office warns that managers of IT assets "need to keep up" with the changing economics of open source: Early 2022 has brought with it an unusually high level of commotion in the open-source community, largely focused on the economics of who — and how we — should pay for "free" software. But this isn't just some geeky flame war. What's at stake is critical for vast swaths of the business world....

We know of many open-source enthusiasts who maintain their software personally while leading busy professional lives — the last thing they want is the responsibility of a service-level agreement because someone paid them for their creation. So, is this the end of the road for the open-source dream? Certainly, many of the open-source naysayers will view the recent upheavals as proof of a failed approach. They couldn't be more wrong. What we're seeing today is a direct result of the success of open-source software. That success means there isn't a one-size-fits-all description to define open-source software, nor one economic model for how it can succeed.

For internet giants like Facebook or Netflix, the popularity, or otherwise, of their respective JavaScript library and software tool — React and Chaos Monkey — is beside the point. For such companies, open-source releases are almost a matter of employer branding — a way to show off their engineering chops to potential employees. The likelihood of them altering licensing models to create new revenue streams is small enough that most enterprises need not lose sleep over it. Nonetheless, if these open-source tools form a critical part of your software stack or development process, you might want some form of contingency plan — you're likely to have very little sway over future developments, so understanding your risks helps.

For companies that have built platforms containing open-source software, the risks are more uncertain. This is in line with Thoughtworks' view that all businesses can benefit from a greater awareness of what software is running in their various systems. In such cases, we advise companies to consider the extent to which they're reliant on that piece of software: are there viable alternatives? In extreme circumstances, could you fork the code and maintain it internally?

Once you start looking at crucial parts of your software stack where you're reliant on hobbyists, your choices begin to dwindle. But if Log4J's case has taught us anything, it's this: auditing what goes into the software that runs your business puts you in a better place than being completely caught by surprise.

Netflix shares lost over a third of their value on Wednesday after the company reported its first drop in subscribers in a decade, leaving Wall Street questioning its growth in the face of fierce competition and post-pandemic viewer fatigue. From a report: The streaming pioneer's shares fell 37% to $220.40 and were headed for their worst day in nearly 18 years if the losses hold. More than a dozen analysts rushed to temper their views on a stock that has been a red-hot market performer in the past few years. "Netflix is a poster child for what happens to growth companies when they lose their growth," said Kim Forrest, chief investment officer at Bokeh Capital Partners in Pittsburgh. Elon Musk weighed in on Netflix's subscriber loss by responding to a Slashdot tweet, saying "the woke mind virus" is making the streaming platform "unwatchable." He added, "Can they please just make sci-fi/fantasy at least *mostly* about sci-fi/fantasy?"

An anonymous reader quotes a report from Reuters: Netflix said inflation, the war in Ukraine and fierce competition contributed to a loss of subscribers for the first time in more than a decade and predicted more contraction ahead, marking an abrupt shift in fortune for a streaming company that thrived during the pandemic. Netflix's 26% tumble after the bell on Tuesday erased about $40 billion of its stock market value. Since it warned in January of weak subscriber growth, the company has lost nearly half of its value. The lagging subscriber growth prompted Netflix for the first time to say it might offer lower-priced version of the service with advertising. [...] In addition to advertising-supported plans, the company is also looking to generate additional revenue from customers who share their account with friends or family outside their home.