Youtube

YouTube Ad Revenue Tops $8.6 Billion, Beating Netflix In the Quarter (hollywoodreporter.com) 34

YouTube topped Netflix in terms of quarterly revenue, with the Google-owned video platform delivering $8.6 billion in advertising revenue in Q4, the company said Tuesday. The Hollywood Reporter reports: For fiscal 2021, YouTube delivered $28.8 billion in advertising revenue. In the same quarter a year earlier, YouTube delivered $6.9 billion in advertising revenue, underscoring the continued explosive growth of the platform. For comparison, Netflix delivered $7.7 billion in revenue in Q4 in 2021, compared to $6.6 billion a year earlier. Overall, Alphabet, Google's parent company, reported $75.3 billion in revenue for the quarter, and $257.6 billion for the year, with Google search advertising still making up the lions share of revenue.

With regard to YouTube, the executives cited commerce as a potential growth area for YouTube, with CEO Sundar Pichai calling it "a whole other layer of opportunity." "Podcasts, gaming, learning, sports, across all of these areas we will take a vertical specific look and find out how we can support creators better," he said. "While pretty early, there is a lot of pilots under way," he added, noting that they were "super early" into testing how shopping could be baked into YouTube Shorts, its TikTok-esque shorts platform, which Pichai said now has more than 5 trillion views. The executives also called out YouTube's connected TV opportunity.

The Internet

Minecraft DDoS Attack Leaves Small European Country Without Internet (tomshardware.com) 10

Andorra Telecom, the only ISP in the principality of Andorra, suffered repeated distributed denial-of-service (DDoS) attacks during a multi-day Twitch gaming tournament. From a report: The DDoS attacks occurred during the scheduled SquidCraft Games tournament in Minecraft, one of the most successful Twitch Rivals tournaments ever broadcast. Eight or more Andorran streamers were eliminated from the Twitch tournament after the second day of attacks due to their repeated disconnects. There is some suspicion that perpetrators planned the DDoS attacks on Andorra Telecom to cheat the Andorran's of their chance to win the $100,000 pot. The SquidCraft Games was a highly anticipated Twitch streaming event designed to emulate the hit Netflix series called The Squid Game in Minecraft. As noted, it has been a viral game streaming event with a peak viewership of over a million on day two of the event. As per the TV series, this is an elimination game, and in this Twitch event, there is a healthy prize pot of $100,000 to ensure participants would be highly competitive. The event will end on Tuesday. A significant portion of the 150 SquidCraft games participants lives in Andorra. Spanish language reports of the event confirm that day one went without a hitch for all players, in terms of fairness. The games "green light, red light," and "hide and seek" ran smoothly to their conclusions.
Businesses

Why Netflix's Stock Dropped 41% in Two Months (cnn.com) 156

"Netflix's stock has tumbled 41% from the all-time high it hit just two months ago," reports CNN Business.

"It's gaining subscribers at a painfully slow pace. Competition is heating up. The company's answer to all that: It just raised prices on North American customers." Netflix ended 2021 with 221.8 million subscribers. That's significantly more than others in the streaming marketplace, including Disney, one of its closest competitors. Disney had 118.1 million subscribers as of October, and it grew subscriptions 60% between October 2020 and October 2021. During that same period, Netflix grew just 9%. Disney hasn't yet reported its financial results for the last three months of 2021. But Netflix's growth slowed even further in the fourth quarter to just 8%. (And Disney's growth last quarter spooked Wall Street too....)

The problem with relying exclusively on subscriptions for revenue is: after a while, you run out of people who haven't subscribed. That's bad news for Wall Street investors who are mostly concerned with companies' abilities to grow. Zak Shaikh, vice president of programming at research-based media firm Magid, believes that Netflix's fall is more of "a Wall Street thing" rather than "something that reflects the business is in trouble.... They still added subs, and they still have the same high usage and viewing metrics," he added. However, even Shaikh pointed out that in the long term, "Netflix will have to deal with the fact that you can't keep adding subscribers."

One way the company has tried to offset its slowing growth is by investing in other verticals, such as gaming. Another way is to raise prices, but that could prove difficult as fierce competition ramps up. Although price increases will probably help to offset its sluggish sign ups, they could also lead to more stagnation for Netflix. For some consumers, price increases — even small ones — are a lot to ask considering that so many competitors are at Netflix's gates.

Michael Nathanson, a media analyst at MoffettNathanson, specifically predicted to CNN Business that 2022 will be a year "of concern about growth and competition for Netflix."
Businesses

Nasdaq 100's Unrelenting Declines Ring a Dot-Com Bust Alarm Bell (bloomberg.com) 78

An anonymous reader quotes a report from Bloomberg: To wit, the Nasdaq 100 just did something it hasn't done since the aftermath of the internet bubble: fall more than 1% in every session of a week. It doesn't count as a superlative because Monday was a holiday. But for investors caught up in the selloff, it felt like something shifted. A full week of big down days hasn't happened since the dot-com bubble burst, first in April 2000 and then in September 2001. Back then, the Nasdaq went on to fall another 28% before the market bottomed roughly a year later.

The Nasdaq 100 tumbled 7.5% this week as what started as an aggressive selloff in speculative corners spread to the rest of the market. Disappointing results from pandemic darlings like Netflix accentuated investor angst that as the economy recovers, tech's growth edge is disappearing. Add that to stretched valuations and there was room for a pullback. Down almost 12% in January, the Nasdaq 100 is on course for its worst month since the 2008 global financial crisis. On any four-day basis, the current streak of 1% drops was the first since 2018.

Investors appear to be paying up for near-term hedges as share prices spiraled down. The CBOE NDX Volatility Index, a gauge of cost options tied to the Nasdaq, jumped 8 points over the four days to 34.06, the highest level since last March. Whether this is the start of a bottoming process or something worse is hard to tell. In Bank of America Corp.'s latest survey of global fund managers, net allocation to the technology sector fell to the lowest level since 2008. "If there's this kind of liquidation underway here, you have to wonder how much further things could fall," said Pearkes at Bespoke. "On the other hand, this sort of pervasive negativity and selling is what contrarians look for as a sign sentiment has gotten carried away to the downside."

Piracy

VPN Provider Agrees To Block Torrent Traffic and The Pirate Bay On US Servers (torrentfreak.com) 55

An anonymous reader quotes a report from TorrentFreak: Over the past few years we have seen copyright holders take several ISPs to court, accusing them of failing to disconnect repeat copyright infringers. These lawsuits have expanded recently, with VPN providers and hosting companies as the main targets. The VPN lawsuits are filed by a group of independent movies companies that previously went after piracy sites and apps. They include the makers of films such as The Hitman's Bodyguard, Dallas Buyers Club, and London Has Fallen. In one of these cases, the filmmakers accused VPN Unlimited's company KeepSolid Inc. of being involved in widespread copyright infringement. The company allegedly 'encouraged' subscribers to use pirate sites and did nothing to stop infringing traffic.

Most VPNs can't track the online activities of subscribers and the filmmakers believe that VPN Unlimited and other providers actively promoted their services to online pirates. For example, by referencing known pirate sites. "Defendant KeepSolid encourages its users to access torrent sites including the Pirate Bay," the complaint read, showing a screenshot from the VPN's help section, which remains online today. Instead of fighting the case on its merits, both parties have agreed to settle the case behind closed doors. Last week, they informed the Virginia federal court that an agreement had been reached. As part of this settlement, all claims against VPN Unlimited were dismissed. The full details of the settlement agreement are confidential. Both parties agreed to cover their own costs but it's unknown whether any monetary damages are involved. What is clear is that, going forward, VPN Unlimited will restrict torrent traffic on its U.S. servers.

"Pursuant to the confidential settlement agreement, Plaintiffs have requested and Defendant KeepSolid has agreed to use commercially reasonable efforts to block BitTorrent traffic," the joint dismissal stipulation reads. As it reads, this measure applies to BitTorrent traffic as a broad category. That includes both pirated content and lawful torrent transfers. In addition, VPN Unlimited will also take more targeted measures to stop traffic to torrent sites. VPN Unlimited has agreed to block access to several pirate sites. These include YTS, The Pirate Bay, RARBG, 1337x, and several proxies. These measures are again limited to U.S.-based VPN servers. Popcorn-time.tw is also on the blocklist, but this Popcorn Time fork has already shut down.

Television

Netflix Raises Monthly Subscription Prices in US, Canada (reuters.com) 36

Netflix has raised its monthly subscription price by $1 to $2 per month in the United States depending on the plan, the company said on Friday, to help pay for new programming to compete in the crowded streaming TV market. From a report: The standard plan, which allows for two simultaneous streams, now costs $15.49 per month, up from $13.99, in the United States. Prices also went up in Canada, where the standard plan climbed to C$16.49 from C$14.99. The price increases, the first in those markets since October 2020, took effect immediately for new customers. Existing members will see the new prices in the coming weeks when they receive their monthly bills.
Bug

T-Mobile Says It Has 'Not Broadly Blocked' iCloud Private Relay, Blames iOS 15.2 Bug For Errors (9to5mac.com) 11

T-Mobile has officially acknowledged a bug that has blocked some subscribers from using iCloud Private Relay when connected to cellular networking. In a statement to 9to5Mac, T-Mobile blamed this situation on a bug in iOS 15.2 and said that it has "not broadly blocked" iCloud Private Relay. From the report: It's also important to note that this bug is not only affecting T-Mobile subscribers, as the company says in its statement. Instead, it's a bug that seems to affect iOS 15.2 broadly rather than T-Mobile specifically. The issue is also still present in the latest release of iOS 15.3 beta. The full statement reads: "Overnight our team identified that in the 15.2 iOS release, some device settings default to the feature being toggled off. We have shared this with Apple. This is not specific to T-Mobile. Again though, we have not broadly blocked iCloud Phone Relay."

A solution to the problem that has worked for 9to5Mac in testing is to go to Settings, then choose Cellular, then choose your plan, and ensure that "Limit IP Address Tracking" is enabled. Make sure to complete these steps while WiFi is disabled and you are connected to your cellular network. T-Mobile has, however, acknowledged that are situations in which it is required to block iCloud Private Relay due to technical reasons. Namely, if your account or line has content moderation features or parental controls enabled, you will be unable to use iCloud Private Relay when connected to cellular. [...] A source has also confirmed to 9to5Mac that this also applies to certain legacy plans that include the Netflix on Us perk and have Family Allowances enabled.

Movies

Netflix Gets Its First Golden Globe For Best Motion Picture (Drama) (techcrunch.com) 36

Last night, Netflix's "The Power of the Dog" became the streamer's first-ever movie to take home a Golden Globe for best motion picture (drama). The movie also won for best director (Jane Campion) and best supporting actor (Kodi Smit-McPhee). As TechCrunch points out, "NBC announced in May 2021 it wouldn't broadcast the awards show this year after an investigation by The L.A. Times revealed the lack of diversity within the Hollywood Foreign Press Association (HFPA), the organization that hosts the annual event, as well as evidence of some members receiving gifts that amounted to bribes. [...] Instead, the event's winners were live-tweeted in an often bizarre fashion." From the report: In addition to being an overall quieter year as the HFPA tries to reform its organization following the controversies, the winning networks also aren't touting their victories as they would normally, despite some seeing some notable firsts and upsets. In prior years, HBO would be happily promoting its sweep over rivals. The network led the night with six wins, including four for HBO and two for HBO Max. Several of these were for its TV series "Succession," which won for best TV drama, TV drama actor (Jeremy Strong) and supporting actress (Sarah Snook.) HBO Max's comedy "Hacks" also notably beat out Emmy winner "Ted Lasso" (Apple TV+) as best comedy, and saw its lead, Jean Smart, win for best actress in a comedy. And Kate Winslet won best TV actress in a limited series for HBO's "Mare of Easttown."

Meanwhile, though Netflix led the year by nominations -- including for best dramatic film "The Power of the Dog" and drama series "Squid Game" -- it had said it wouldn't participate in the event until the HFPA institutes changes. That decision means it's also now not bragging about a couple of notable firsts that resulted from last night's awards. [...] In addition, Netflix's runaway hit TV series "Squid Game" received three nominations this year, leading to the first-ever win for South Korea, as South Korean actor O Yeong-su won for his role in the series, beating out "Succession's" Kieran Culkin (HBO) and "The Morning Show's" Billy Crudup (Apple TV+). Netflix also won for "tick, tick... BOOM!" when Andrew Garfield took the trophy for best actor in a motion picture (musical or comedy), though the tweet had forgotten to credit the project by name.

Apple TV+ took home one win last night, as "Ted Lasso's" Jason Sudeikis won best actor in a TV series (comedy). Hulu also got one Globe, as "Dopesick's" Michael Keaton won best actor in a TV limited series or motion picture made for television, while Amazon Prime Video's "The Underground Railroad" won the category. Amazon Prime Video's "Being the Ricardos" was highlighted with Nicole Kidman's win as best actress in a motion picture. In another milestone, the first trans actress to win a Golden Globe, FX's "Pose" star Michaela Jae Rodriguez, took home the trophy for best actress in a drama. 20th Century Studio/Disney's "West Side Story" won best picture (musical or comedy) and its stars, Rachel Zegler and Ariana DeBose, won best actress and supporting actress, respectively. Disney's "Encanto," which streamed on Disney+ just a month after hitting theaters, won best animated picture. Warner Bros.' "Dune" got the trophy for best score (Hans Zimmer), and Will Smith was named best actor in a motion picture (drama) for "King Richard." The best non-English language picture award went to the Japanese film "Drive My Car."
You can view the full list of winners here.
Piracy

Popcorn Time, the Piracy App That Spooked Netflix, Shuts Down (bloomberg.com) 31

Popcorn Time, the once-popular app that made watching pirated movies and television shows almost as easy as using Netflix, has shut down. Bloomberg News: The app debuted in 2014 and within a year became one of the most popular services for accessing illegal video content. Popcorn Time's creators deserted the service shortly after its introduction, and emails released after a hack of Sony Group indicated law enforcement may have played a role. But the app's code was open-source, and other developers jumped in to release new versions. In 2015, a developer associated with Popcorn Time told Bloomberg that the service wasn't responsible for piracy because it didn't host any stolen material itself. The software instead offered a link to computers around the world hosting the content through the file-sharing system BitTorrent. "The torrent world was here with millions of users way before us and will be here with BILLIONS of users way after us," he said at the time.
Entertainment

Russia To Require Netflix To Stream State Television Broadcasts (themoscowtimes.com) 62

Russia's state media watchdog will require Netflix to offer state television channels to its Russian customers after it added the U.S.-based streaming service to its register of "audio-visual services" this week. From a report: Roskomnadzor's register, which was created in late 2020, applies to online streaming services with over 100,000 daily users and requires them to comply with Russian law and register a Russian company. Registered services are also required to provide streams of 20 major Russian federal television channels. From March 2022, Netflix will be obliged to offer broadcasts from flagship state-owned Channel One, entertainment-focused NTV and the Russian Orthodox Church's in-house channel Spas, which means "Saved," to its users within Russia. The laws that Netflix must now obey include controversial provisions banning the promotion of "extremism" -- a restriction which has been used against supporters of the anti-Kremlin opposition.
Piracy

'Widevine Dump': Leaked Code Downloads HD Video From Disney+, Amazon, and Netflix (torrentfreak.com) 24

An anonymous reader quotes a report from TorrentFreak: A GitHub user who goes by the name "Widevinedump" has published several repositories that allow people to download HD video from popular streaming platforms, including Disney+, Amazon, and Netflix. The code appears to be the real deal but the 'free' use is fairly limited and may not be very secure either. [...] TorrentFreak spoke to a source who confirmed that these scrips are indeed the real deal. That said, they appear to be relatively old pieces of code that may not be the most secure. Using these tools could get someone banned by a streaming platform, or perhaps worse.

There is another major issue that raises suspicion. Most of the download tools don't come with the Content Decryption Module (CDM) that's included to download 4K content. To gain access to that, people are required to buy it from the leaker, who writes that people can contact them via email. That said, there is also a free L1 Content Decryption Module posted in the 'LenovoTB-X505X-L1-KEY' repository. A trusted source confirmed to TorrentFreak that this CDM is indeed working. However, as Widevinedump also notes, it may not be active for much longer.

While these leaks are a major blow to the streaming platforms, which do all they can to keep their content secure, the developer has another agenda. In addition to selling CDMs, the code was apparently leaked to "punish" some people on Discord, who we assume shared it privately. "Hi! My name is WVDUMP. I am Leaking the CDM to burn it & punish few idiots that think themselves as dicord lords [sic]," the developer writes. Needless to say, using these tools can lead to all sorts of trouble and is clearly in violation of the DMCA's anti-circumvention provisions. As such, we doubt they will stay on GitHub for much longer.

The Internet

In 2021, the Internet Went for TikTok, Space and Beyond (cloudflare.com) 32

Cloudflare blog: Let's start with our Top Domains Ranking and 2021 brought us a very interesting duel for the Number 1 spot in our global ranking. Google.com (which includes Maps, Translate, Photos, Flights, Books, and News, among others) ended 2020 as the undefeated leader in our ranking -- from September to December of last year it was always on top. Back then TikTok.com was only ranked #7 or #8.

Top 10 -- Most popular domains (late) 2021

1 TikTok.com
2 Google.com
3 Facebook.com
4 Microsoft.com
5 Apple.com
6 Amazon.com
7 Netflix.com
8 YouTube.com
9 Twitter.com
10 WhatsApp.com

Top 10 -- Most popular domains (late) 2020

1 Google.com
2 Facebook.com
3 Microsoft.com
4 Apple.com
5 Netflix.com*
6 Amazon.com
7 TikTok.com
8 YouTube.com
9 Instagram.com *
10 Twitter.com

2021 told a different story. It was on February 17, 2021, that TikTok got the top spot for a day. Back in March, TikTok got a few more days and also in May, but it was after August 10, 2021, that TikTok took the lead on most days. There were some days when Google was #1, but October and November were mostly TikTok's days, including on Thanksgiving (November 25) and Black Friday (November 26).

Books

2021's Hugo Award Winners Include a Videogame, Plus Netflix and NBC Shows (thehugoawards.org) 71

The World Science Fiction Society has selected this year's winners for their prestigious Hugo award.

The best novel award went to Network Effect, the fifth book in the Murderbot Diaries series by Martha Wells, which also won this year's Hugo award for best series. (And Network Effect also won 2021's Nebula award for best novel, given by the Science Fiction and Fantasy Writers of America.) Here's how publisher Tor.com begins their description: You know that feeling when you're at work, and you've had enough of people, and then the boss walks in with yet another job that needs to be done right this second or the world will end, but all you want to do is go home and binge your favorite shows? And you're a sentient murder machine programmed for destruction? Congratulations, you're Murderbot.

Come for the pew-pew space battles, stay for the most relatable A.I. you'll read this century.

The best novelette award went to Two Truths and a Lie by Sarah Pinsker — available now for free reading online (which also won a Nebula award). The best novella award went to The Empress of Salt and Fortune by Nghi Vo. (Both were also published by Tor.com.) Also available for free reading online is the Hugo winner for best short story, "Metal Like Blood in the Dark" by T. Kingfisher. (And Kingfisher won a second Hugo this year — the Lodestar award for best young adult book for A Wizard's Guide to Defensive Baking — which also won a Nebula award.)

A special award for "Best Related Work" went to Beowulf: A New Translation. ("Maria Dahvana Headley's decision to make Beoulf a bro puts his macho bluster in a whole new light," wrote the New York Times.) And the Best Graphic Story award went to Parable of the Sower: A Graphic Novel Adaptation, written by Octavia Butler and adapted by Damian Duffy...

Netflix won a Hugo award for The Old Guard ("Best Dramatic Presentation, Long Form"), while the final 53-minute episode of NBC's TV show The Good Place won the Hugo for Best Dramatic Presentation, Shortform. (The episode also won this year's "Ray Bradbury Nebula Award for Outstanding Dramatic Presentation".)

And there were also awards for best fan podcast, best fan writer, and best fanzine, as well as special one-off Hugo award for best video game, which went to the game Hades.
Entertainment

Struggling To Win Subscribers, Netflix Cuts Prices in India (techcrunch.com) 27

Nearly six years after Netflix launched its service in India, the global streaming giant is still struggling to find customers willing to pay for what is already its cheapest subscription globally. From a report: The American firm on Tuesday further lowered the subscription price in India, cutting each monthly subscription tier's cost by at least 18% and up to 60.1%. The Netflix Basic plan, which permits streaming on any device but caps the resolution at 480p, now costs 199 Indian rupees ($2.6) in India, down from 499 Indian rupees ($6.6). Netflix Standard, which improves the video resolution to HD (720p) and permits two simultaneous views, now costs 499 Indian rupees, down from 649 Indian rupees ($8.5). Netflix Premium, which offers four simultaneous views and streams in UltraHD (4K) video quality, now costs 649 Indian rupees, down from â799 ($10.5).
Microsoft

Microsoft Quietly Told Apple It Was Willing To Turn Big Xbox-exclusive Games Into iPhone Apps (theverge.com) 7

Private emails show Microsoft wheeling and dealing to get into the App Store. From a report: Remember when Apple pretended like it would let cloud gaming services like Microsoft xCloud and Google Stadia into the App Store, while effectively tearing their business models to shreds? Know how Microsoft replied that forcing gamers to download hundreds of individual apps to play a catalog of cloud games would be a bad experience? In reality, Microsoft was willing to play along with many of Apple's demands -- and it even offered to bring triple-A, Xbox-exclusive games to iPhone to help sweeten the deal. That's according to a new set of private emails that The Verge unearthed in the aftermath of the Epic v. Apple trial.

These games would have run on Microsoft's Xbox Cloud Gaming (xCloud) platform, streaming from remote server farms filled with Xbox One and Xbox Series X processors instead of relying on the local processing power of your phone. If the deal had been made, you could have theoretically bought a copy of a game like Halo Infinite in Apple's App Store itself and launched it like any other app -- instead of having to pay $14.99 a month for an Xbox Game Pass Ultimate subscription with a set catalog of games and then needing to use Microsoft's web-based App Store workaround. But primarily, Microsoft was negotiating to bring its Netflix-esque catalog of xCloud games to the App Store, at a time when Apple had gotten very touchy about cloud gaming in general.

The emails, between Microsoft Xbox head of business development Lori Wright and several key members of Apple's App Store teams, show that Microsoft did start with a wide array of concerns about stuffing an entire service worth of Xbox games into individual App Store apps as of February 2020. Wright mentioned the "Complexity & management of creating hundreds to thousands of apps," how they'd have to update every one of those apps to fix any bugs, and how all those app icons could lead to cluttered iOS homescreens, among other worries.

DRM

FSF's Anti-DRM Campaign Plans Bad-Review Protest Against Disney+ (fsf.org) 76

For their fifteenth International Day Against DRM this Friday, the Free Software Foundation's "Defective by Design" campaign is "calling on you to help us send a message to purveyors of Digital Restrictions Management (DRM)".

And this year they're targeting Disney+ The ongoing pandemic has only tightened the stranglehold streaming services have as some of the most dominant forms of entertainment media, and Disney+ is among the worst of them. After years of aggressive lobbying to extend the length of copyright, based on their perceived need to keep a certain rat from entering the public domain, they've now set their sights on "protecting" their various franchises in a different way: by shackling them with digital restrictions. If Disney's stated mission is to keep "inspiring hope and sparking the curiosity of all ages", using DRM to limit that curiosity remains the wrong move.

This year, we'll be using one of Disney's own means of spreading their "service" and the DRM bundled with it: their mobile app. If you're an existing user of the Google Play (Android) or Apple App Stores, you can support the International Day Against DRM by voicing your objection to Disney's subjugation of their users. Streaming services like Netflix and Peacock have the same issues, but by targeting a newer one with such massive investment and capital behind it, we can make sure that we're heard. Disney+ is new: that gives it time to change.

Disney+ is placed near the top of the most frequently downloaded apps on both the Google Play and Apple App Stores. We invite you to write a well-thought objection to Disney's use of DRM, with a fitting review. It is the perfect way to let the corporation, and other users intending to use its services know Disney's grievous mistake in using DRM to restrict customers who already want to view their many films and television shows. It will give you a chance to give them the exact rating that any service that treats its users so poorly: a single star.

DRM isn't the only problem with the Disney+ app. It's also nonfree software. If you're not already an Android or iOS user, we don't recommend starting an account just to participate in this action. You can also choose to send an email to Disney executives following our template.

They're urging supporters to also share the actions they've taken on social media using the tag #DayAgainstDRM. (And there's also an IRC channel "to discuss and share strategies for anti-DRM activism," with more anti-DRM actions still to come.

"While some aspects of the struggle have changed, the core principles remain the same: users should not be forced to surrender their digital autonomy in exchange for media."
Network

Big Tech Firms Should Pay ISPs To Upgrade Networks, Telcos In Europe Claim (arstechnica.com) 87

An anonymous reader quotes a report from Ars Technica: The CEOs of 13 large European telecom companies today called on tech giants -- presumably including Netflix and other big US companies -- to pay for a portion of the Internet service providers' network upgrade costs. In a "joint CEO statement," the European telcos described their proposal as a "renewed effort to rebalance the relationship between global technology giants and the European digital ecosystem." The letter makes an argument similar to one that AT&T and other US-based ISPs have made at times over the past 15 years, that tech companies delivering content over the Internet get a "free" ride and should subsidize the cost of building last-mile networks that connect homes to broadband access. These arguments generally don't mention the fact that tech giants already pay for their own Internet bandwidth costs and that Netflix and others have built their own content-delivery networks to help deliver the traffic that home-Internet customers choose to receive.

Today's letter from European ISPs was signed by the CEOs of A1 Telekom Austria Group, Vivacom, Proximus Group, Telenor Group, KPN, Altice Portugal, Deutsche Telekom, BT Group, Telia Company, Telefonica, Vodafone Group, Orange Group, and Swisscom. They wrote: "Large and increasing part of network traffic is generated and monetized by big tech platforms, but it requires continuous, intensive network investment and planning by the telecommunications sector. This model -- which enables EU citizens to enjoy the fruits of the digital transformation -- can only be sustainable if such big tech platforms also contribute fairly to network costs." The European telcos didn't mention any specific tech giants, but Reuters wrote today that "US-listed giants such as Netflix and Facebook are companies they have in mind." The letter also discusses other regulatory topics related to fiber and mobile broadband, saying that "regulation must fully reflect market realities... Namely, that telecom operators compete face-to-face with services by big tech."

Classic Games (Games)

World Chess Champion Urges Quicker Games, Is Also Rich (chessnews.com) 81

CNN profiles Magnus Carlsen, the world's best chess player — and the state of the chess community today: Interest in chess spiked at the beginning of the pandemic, and again in October 2020 after the release of the Netflix series, "The Queen's Gambit." In the first three weeks after its debut, sales of chess sets went up by 87% in the U.S. and sales of books about chess leaped 603%, according to marketing research company NPD Group. Not since the 1970s, when American legend Bobby Fischer burst onto the scene, has the game captured the attention of the world like this....

Carlsen tries hard to be indifferent toward anything at all during the press conference and interview. But he does have strong opinions on how the game should be changed to make sure it holds the attention of the current groundswell of interested players. "I've been somebody who's supported having quicker games in the world championship for a long time," he said. "I think for people who are not into chess at all, who don't know anything about the game, you're more naturally attracted to quicker games." World championship games can last hours and often end in ties because mistakes are so rare...

Carlsen's love of fast-paced chess isn't surprising, considering he is the current world champion in both "Rapid" and "Blitz" formats — games that generally last for 15 minutes or less. His tiebreak wins in previous championship games were both in the rapid format and there are numerous videos on YouTube where his quick thinking is showcased. Computers are now powerful enough to calculate billions of possible move combinations in seconds, ably deciding the best possible option. It makes preparation more exacting and less enjoyable, and Carlsen thinks quicker games would help solve that...

Carlsen could rightly be considered the greatest chess player ever. He has been the world champion for eight years and holds the longest unbeaten run in history. He only trails Russian grandmaster Garry Kasparov in weeks spent as the highest rated player.

But the New York Times points out that Carlsen has done something none of his chess-playing predecessors have ever done. "He has leveraged his fame to become one of the chess world's leading impresarios. In the process, he has amassed a small fortune." Carlsen has several private sponsorship agreements, including with Unibet, a sports betting site; Isklar, a Norwegian water company; and Simonsen Vogt Wiig, a Norwegian law firm. But the main vehicle for his business ventures is Play Magnus, a company that he co-founded in 2013, the year he became world champion. Initially designed as an app that allowed users to mimic Carlsen's playing style and strength at different ages, Play Magnus has expanded, mostly through acquisitions, to become a company with a dozen subsidiaries. It now includes an online playing site, multiple teaching and training platforms, and digital and book publishing arms.

According to Andreas Thome, Play Magnus's chief executive, the company has about 250 employees and about four million registered users of its products and proprietary learning programs. One year after it went public on the Euronext Growth Oslo stock exchange, Play Magnus now has a market capitalization of about $115 million. It is the only publicly traded chess company in the world.

Carlsen's personal stake in the company is worth nearly $9 million, the Times points out — even as Carlsen is now competing in the world chess championship for a $2.24 million prize, where "as much as 60% will go to the winner."

In the 14-game match, the first two games...all ended in a draw. "The result means there have now been 16 draws in a row in world championship games played at classical time controls," the Guardian pointed out, "dating back five years to game 11 of Carlsen's match against Sergey Karjakin in November 2016."

And then the third game, played Sunday....also ended in a draw.
Network

A Look Under the Hood of the Most Successful Streaming Service on the Planet (theverge.com) 21

A service's guts, the engineering behind the app itself, are the foundation of any streamer's success, and Netflix has spent the last 10 years building out an expansive server network called Open Connect in order to avoid many modern streaming headaches. From a report: It's the thing that's allowed Netflix to serve up a far more reliable experience than its competitors and not falter when some 111 million users tuned in to Squid Game during its earliest weeks on the service. "One of the reasons why Netflix is the leader in this market and has the number of subs they do [...] is something that pretty much everybody outside of the technical part of this industry underestimates, and that is Open Connect," Dan Rayburn, a media streaming expert and principal analyst with Frost & Sullivan, tells The Verge. "How many times has Netflix had a problem with their streaming service over the last 10 years?"

Certainly not as many as HBO Max, that's for sure. Open Connect was created because Netflix "knew that we needed to build some level of infrastructure technology that would sustain the anticipated traffic that we knew success would look like," Gina Haspilaire, Netflix's vice president of Open Connect, tells me. "We felt we were going to be successful, and we knew that the internet at the time was not built to sustain the level of traffic that would be required globally." Nobody wants to sit down to watch a movie only to have their app crash or buffer for an eternity. What Netflix had the foresight to understand was that if it was going to maintain a certain level of quality, it would have to build a distribution system itself.

Open Connect is Netflix's in-house content distribution network specifically built to deliver its TV shows and movies. Started in 2012, the program involves Netflix giving internet service providers physical appliances that allow them to localize traffic. These appliances store copies of Netflix content to create less strain on networks by eliminating the number of channels that content has to pass through to reach the user trying to play it. Most major streaming services rely on third-party content delivery networks (CDNs) to pass along their videos, which is why Netflix's server network is so unique. Without a system like Open Connect or a third-party CDN in place, a request for content by an ISP has to "go through a peering point and maybe transit four or five other networks until it gets to the origin, or the place that holds the content," Will Law, chief architect of media engineering at Akamai, a major content delivery network, tells The Verge. Not only does that slow down delivery, but it's expensive since ISPs may have to pay to access that content. To avoid the traffic and fees, Netflix ships copies of its content to its own servers ahead of time. That also helps to prevent Netflix traffic from choking network demand during peak hours of streaming.

Businesses

Nvidia Eyes $1 Trillion Club Following Blowout Earnings (yahoo.com) 24

GoJays shares a report from Yahoo Finance: Nvidia's (NVDA) stock closed out the trading day Thursday with gusto, following its impressive Q3 earnings report on Wednesday. Shares of the chip maker ended the day up 8.25%, after jumping more than 10% at the open. The stock's performance comes after the company reported quarterly revenue jumped 50% year-over-year on the back of strong performances by its data center and gaming businesses in Q3.

Nvidia's data center arm has been a boon for the firm, helping to power its stock price up 124% year-over-year at the close of trading on Wednesday. And the company's earnings report only buoyed investor confidence in the business, which saw record revenue of $2.94 billion in the prior quarter, a 55% year-over-year increase. Not to be out done, Nvidia's gaming business also brought in record revenue of $3.22 billion, a 42% year-over-year increase.
Needham analysts said Nvidia could become the "first trillion dollar semiconductor company." As Bloomberg notes, $60 billion was added to the company's market capitalization on Thursday, which is near the $800 billion threshold. "Since early October, Nvidia has added nearly $300 billion in market value, about the equivalent of the market cap of Disney, Netflix or Pfizer."

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