samleecole writes: A leaked document obtained by 404 Media shows company-wide effort at generative AI company Runway, where employees collected thousands of YouTube videos and pirated content for training data for its Gen-3 Alpha model. The model -- initially codenamed Jupiter and released officially as Gen-3 -- drew widespread praise from the AI development community and technology outlets covering its launch when Runway released it in June. Last year, Runway raised $141 million from investors including Google and Nvidia, at a $1.5 billion valuation.

The spreadsheet of training data viewed by 404 Media and our testing of the model indicates that part of its training data is popular content from the YouTube channels of thousands of media and entertainment companies, including The New Yorker, VICE News, Pixar, Disney, Netflix, Sony, and many others. It also includes links to channels and individual videos belonging to popular influencers and content creators, including Casey Neistat, Sam Kolder, Benjamin Hardman, Marques Brownlee, and numerous others.

Re-visiting the Napster era, Stephen Witt's book How Music Got Free has been adapted into a two-part documentary on Paramount+. But the documentary's director believes "The real innovative minds here were a bunch of rogue teenagers and a guy working a blue-collar factory job in the tiny town of Shelby, North Carolina," according to this article in the Guardian: By day, [Glover] worked at Universal Music's CD manufacturing plant in North Carolina, from which he smuggled out hot albums by stars like Mary J Blige and 50 Cent before they were even released. For the documentary, Glover spoke openly, and largely without regret, as did others who worked at that plant who did their own share of stealing. Part of their incentive was class revenge: while they were paid piddling wages by the hour, the industry used the products they manufactured to mint millions. To maximize profits on his end, Glover set up a subscription service to let those in his circle know what CDs and movies were coming. "He was doing what Netflix would later do," Stapleton said...

In the meantime, the record companies and their lobbying arm, the RIAA, focused their wrath on the most public face of file-sharing: Napster. In truth, all Fanning's company did was make more accessible the work the pirates innovated and first distributed... For its part, the music industry reacted in the worst way possible, PR-wise. They sued the kids who made up their strongest fanbase. "One of the key lessons we learned from this era is that you can't sue your way out of a situation like this," Witt said. "You have to build a new technology that supersedes what the pirates did."

Eventually, that's what happened, though the first attempts in that direction made things worse than ever for the labels and stars. When Apple first created the iPod in 2001, there wasn't yet an Apple store where listeners could purchase music legally. "It was just a place to put your stolen MP3s," said Witt. Labels couldn't sue Apple because of a ruling dictating that the manufacturer of a device couldn't be held responsible for piracy enacted by its users. While Steve Jobs later modified his approach, creating a way for fans to buy individual songs for the iPod, "that did more damage to the industry than anything", Witt said. "Whereas, before they could sell a $15 CD to fans who really just wanted one song, now those fans could get that song for just a dollar...."

Eventually, the collective efforts of the streaming companies returned the music industry to massive profitability, though often at the expense of its artists, who often receive a meager slice of the proceeds.... Things ended less favorably for the pirates, some of whom now have criminal records. Likewise, Glover served a short prison sentence though, today, he is chief maintenance technician at the Ryder Truck manufacturing plant in his home town.
A Forbes senior contributor (and director Alexandria Stapleton) believe that for the younger generation it may be "their first introduction to why the music industry is the way that they're used to."

And Stapleton says their sympathies are with those factory workers. Stapleton: They were completely underpaid. They were making literally nothing. It's important for people to understand that while the industry was charging $20 for a CD, it cost like 20 cents to make. That's a big profit margin. And to have a factory that was paying barely enough for people to put food on the table, I think there's something wrong with that...

Witt: It's amazing to think about what they were really doing, which was essentially filling the technological vacuum that the record industry was refusing to fill, right? The record industry was not building out the successor technology to the compact disc because the compact disc was just too profitable for them. Instead, a bunch of random teenagers built the next generation of technology for them, and yeah, it caused a lot of damage. But I don't think that teenagers were necessarily trying to hurt anyone... They weren't malicious. They just were fascinated by how this stuff worked. And of course, they were also completely entranced by the celebrity of the musicians themselves.
In the interview Witt adds that a lot of those teenagers "were really kind of traumatized by their experience with the FBI I would say, and they wanted to get that story out there."

The documentary was produced by LeBron James and Eminem, "who rode the tail end of the CD boom to stratospheric heights," remembers a Fast Company opinion columnist. (And 25 years later, that columnist has gone back to listening to vinyl records, which "reignited for me a long-missing air of full engagement... Technology marches forward, except when it occasionally lurches backward...")

An anonymous reader shared this report from CNN: Netflix will start phasing out its Basic plan, its cheapest advertising-free plan, which costs $11.99 per month in the United States, the company said on Thursday. The company had previously stopped accepting new sign-ups for the Basic plan, instead pushing customers to Netflix's ad-supported plan, which costs $6.99 per month. However, existing users were allowed to keep the basic plan. In January, the company said it would retire its cheapest ad-free tier in Canada and the UK. On Thursday, the company said the US and France are next.

Basic users in the US who want an ad-free viewing experience on Netflix will now have two choices: Netflix's Standard plan, which costs $15.49 per month, and its Premium plan, which costs $22.99 per month...

The company reported a record-high 277.65 million subscribers on its streaming platform Thursday, far outpacing streaming competitors like Disney+, Peacock and Max... Overall, Netflix added 8.05 million new subscribers in its second quarter. Netflix's surge in new subscribers has been fueled in part by the company's effort to push users who share passwords to create their own accounts.
The article adds that Netflix's stock has climbed more than 35% in 2024.

Mojang Studios, the creator of the globally popular video game Minecraft, is diversifying its revenue streams amid slowing growth in the gaming industry. Chief Executive Asa Bredin revealed in an interview that the company is exploring new partnerships in merchandising, education, and content streaming. The company is also venturing into film and television, with a Warner Bros. movie adaptation set to premiere in April and a Netflix series in development. From a report: Mojang's push follows repeated forays by Nintendo and Sony Group to broaden the appeal of their gaming properties at a time that spending in the industry has hit a lull. Nintendo is developing a live-action film based on the Legend of Zelda franchise, following the blockbuster success of The Super Mario Bros. Movie, while Sony has turned The Last of Us into an HBO series and created games based on the Spider-Man movies.

Netflix has started booting subscribers off its cheapest ad-free subscription tier, "starting with the UK and Canada, with more countries inevitably to follow," reports MacRumors. From the report: The streaming giant has reportedly begun notifying users via on-screen messages about the last day they can access the service unless they upgrade. One Reddit user shared a notification they had received from the Netflix app, saying: "Your last day to watch Netflix is July 13th. Choose a new plan to keep watching." Customers are being prompted to instead choose the cheaper Standard with ads, or the more expensive Standard or Premium 4K plans.

The Basic plan, which costs $11.99 per month in the United States, has not been available to new subscribers since last year. In its early 2024 earnings call, Netflix announced its intention to retire its Basic plan in some countries where the ads plan has been introduced, starting with Canada and the UK in the second quarter, and then "taking it from there." Netflix said in May that its ad-supported streaming tier has 40 million global monthly active users, up 35 million from a year ago.

Netflix is following through on its plan to phase out its cheapest ad-free tier for existing subscribers. From a report: As spotted in numerous posts on Reddit, Netflix is now asking some basic plan subscribers to choose a new plan to stay subscribed to Netflix. One Reddit user received a notification on their Netflix app, saying "Your last day to watch Netflix is July 13th. Choose a new plan to keep watching." Subscribers paying $11.99 / month for the basic plan will have to choose either the $6.99 ad-supported tier, the $15.49 ad-free tier, or the $22.99 ad-free 4K premium plan.

storagedude shares a report from the Cyber Express: Some of the most widely used web and social media applications could be vulnerable to three newly discovered CocoaPods vulnerabilities -- including potentially millions of Apple devices, according to a report by The Cyber Express, the news service of threat intelligence vendor Cyble Inc. E.V.A Information Security researchers reported three vulnerabilities in the open source CocoaPods dependency manager that could allow malicious actors to take over thousands of unclaimed pods and insert malicious code into many of the most popular iOS and MacOS applications, potentially affecting "almost every Apple device." The researchers found vulnerable code in applications provided by Meta (Facebook, Whatsapp), Apple (Safari, AppleTV, Xcode), and Microsoft (Teams); as well as in TikTok, Snapchat, Amazon, LinkedIn, Netflix, Okta, Yahoo, Zynga, and many more.

The vulnerabilities have been patched, yet the researchers still found 685 Pods "that had an explicit dependency using an orphaned Pod; doubtless there are hundreds or thousands more in proprietary codebases." The newly discovered vulnerabilities -- one of which (CVE-2024-38366) received a 10 out of 10 criticality score -- actually date from a May 2014 CocoaPods migration to a new 'Trunk' server, which left 1,866 orphaned pods that owners never reclaimed. While the vulnerabilities have been patched, the work for developers and DevOps teams that used CocoaPods before October 2023 is just getting started. "Developers and DevOps teams that have used CocoaPods in recent years should verify the integrity of open source dependencies used in their application code," the E.V.A researchers said. "The vulnerabilities we discovered could be used to control the dependency manager itself, and any published package." [...] "Dependency managers are an often-overlooked aspect of software supply chain security," the researchers wrote. "Security leaders should explore ways to increase governance and oversight over the use these tools." "While there is no direct evidence of any of these vulnerabilities being exploited in the wild, evidence of absence is not absence of evidence." the EVA researchers wrote. "Potential code changes could affect millions of Apple devices around the world across iPhone, Mac, AppleTV, and AppleWatch devices."

While no action is required by app developers or users, the EVA researchers recommend several ways to protect against these vulnerabilities. To ensure secure and consistent use of CocoaPods, synchronize the podfile.lock file with all developers, perform CRC validation for internally developed Pods, and conduct thorough security reviews of third-party code and dependencies. Furthermore, regularly review and verify the maintenance status and ownership of CocoaPods dependencies, perform periodic security scans, and be cautious of widely used dependencies as potential attack targets.

An anonymous reader shares a report: If you've been mindlessly scrolling through streaming services and have been feeling even less enthused than usual, you may not be entirely to blame: almost all major US streamers have been cutting their original TV output this year, according to new analysis (paywalled) from Variety.

From content monolith Netflix, which released 203 original shows in the first half of 2023 compared with 174 in H1 '24, to Disney+, which has halved its already-slim original TV library as it continues an apparent shift to quality over quantity, shrinkage has hit the streaming world hard. Indeed, of the 8 major streamers Variety studied from Luminate data, only Max and Peacock maintained their output level year over year. All told, the number of original seasons fell 19% at the 8 streamers tracked.

An anonymous reader shares a report: We're at a transitional moment in streaming -- user growth is slowing and major players are looking to consolidate, but the long-promised dream of profitability finally seems within reach (especially if you're Netflix). The perfect time, then, for The New York Times to interview many of the industry's big names -- including Netflix co-CEO Ted Sarandos, Amazon's Prime Video head Mike Hopkins, and IAC chairman Barry Diller -- about what they think comes next.

There seemed to be broad agreement on most of the big themes: More ads, higher prices, and fewer big swings on prestige TV. These changes are all united by the shift towards profitability, rather than growth-at-all-costs. If the initial prices of many streaming services seemed unsustainably low at launch, it turns out they were -- prices have been steadily rising, while the streamers have also introduced more affordable subscription tiers for viewers who are willing to watch ads. In fact, some execs told The Times that streamers will keep raising prices for the ad-free tiers with the aim of pushing more customers to sign up for ad-supported subscriptions instead. The growth of ad-supported streaming could also affect the kinds of movies and shows that get produced, since advertisers generally want to reach a mass audience -- think of the heyday of ad-supported network TV, with its endless shows about doctors and cops, compared to the more ambitious fare on subscription-supported HBO.

An anonymous reader quotes a report from CBC News: Online streaming services operating in Canada will be required to contribute five percent of their Canadian revenues to support the domestic broadcasting system, the country's telecoms regulator said on Tuesday. The money will be used to boost funding for local and Indigenous broadcasting, officials from the Canadian Radio-television and Telecommunications Commission (CRTC) said in a briefing. "Today's decision will help ensure that online streaming services make meaningful contributions to Canadian and Indigenous content," wrote CRTC chief executive and chair Vicky Eatrides in a statement.

The measure was introduced under the auspices of a law passed last year designed to make sure that companies like Netflix make a more significant contribution to Canadian culture. The government says the legislation will ensure that online streaming services promote Canadian music and stories, and support Canadian jobs. Funding will also be directed to French-language content and content created by official language minority communities, as well as content created by equity-deserving groups and Canadians of diverse backgrounds. The release also said that online streaming services will "have some flexibility" to send their revenues to support Canadian television directly. [...]

The measure, which will start in the 2024-2025 broadcasting year, would raise roughly $200 million annually, CRTC officials said. It will only apply to services that are not already affiliated with Canadian broadcasters. The CMPA was among 20 screen organizations from around the world that signed a statement in January asking governments to impose stronger regulations on streaming companies operating in local markets. One of the demands was a measure that would force companies profiting from their presence in those markets to contribute financially to the creation of new local content."We are disappointed by today's decision and concerned by the negative impact it will have on Canadian consumers. We are assessing the decision in full, but this onerous and inflexible financial levy will be harmful to consumer choice," a spokesperson for Prime Video wrote to CBC News in a statement.

Apple is seeking a senior engineer to help build a television and sports app for Android, a sign the company is finally bringing its TV+ service to the rival smartphone platform. From a report: In a job listing published in recent days, Apple said it's looking for someone to lead the development of "fun new features" and "help build an application used by millions to watch and discover TV and sports." The move suggests that the company is looking to gain market share in video streaming -- and is setting aside its rivalry with Android in order to chase additional users. It's rare for Apple to develop software for Google's Android, which competes with its iOS platform. The TV+ service, launched in 2019, is Apple's answer to Netflix or Disney+, and the company has spent heavily on feeding it with original content.

Space.com calls it a movie "adding more combustible material to the inferno of AI unease sweeping the globe." Its director tells them James Cameron was a huge inspiration, saying Atlas "has an Aliens-like vibe because of the grounded, grittiness to it." (You can watch the movie's trailer here...)

But Tom's Guide says "the reviews are just as shocking as the movie's AI." Its "audience score" on Rotten Tomatoes is 55% — but its aggregate score from professional film critics is 16%. The Hollywood Reporter called it "another Netflix movie to half-watch while doing laundry." ("The star plays a data analyst forced to team up with an AI robot in order to prevent an apocalypse orchestrated by a different AI robot...") The site Giant Freakin Robot says "there seems to be a direct correlation between how much money the streaming platform spends on green screen effects and how bad the movie is" (noting the film's rumored budget of $100 million)...

But Tom's Guide defends it as a big-budget sci-fi thriller that "has an interesting premise that makes you think about the potential dangers of AI progression." Our world has always been interested in computers and machines, and the very idea of technology turning against us is unsettling. That's why "Atlas" works as a movie, but professional critics have other things to say. Ross McIndoe from Slant Magazine said: "Atlas seems like a story that should have been experienced with a gamepad in hand...." Todd Gilchrist from Variety didn't enjoy the conventional structure that "Atlas" followed...

However, even though the score is low and the reviews are pretty negative, I don't want to completely bash this movie... If I'm being completely honest, most movies and TV shows nowadays are taken too seriously. The more general blockbusters are supposed to be entertaining and fun, with visually pleasing effects that keep you hooked on the action. This is much like "Atlas", which is a fun watch with an unsettling undertone focused on the dangers of evolving AI...

Being part of the audience, we're supposed to just take it in and enjoy the movie as a casual viewer. This is why I think you should give "Atlas" a chance, especially if you're big into dramatic action sequences and have enjoyed movies like "Terminator" and "Pacific Rim".

Lauren Forristal writes via TechCrunch: Netflix announced during its Upfronts presentation on Wednesday that it's launching its own advertising technology platform only a year and a half after entering the ads business. This move pits it against other industry heavyweights with ad servers, like Google, Amazon and Comcast. The announcement signifies a significant shake-up in the streaming giant's advertising approach. The company originally partnered with Microsoft to develop its ad tech, letting Netflix enter the ad space quickly and catch up with rivals like Hulu, which has had its own ad server for over a decade.

With the launch of its in-house ad tech, Netflix is poised to take full control of its advertising future. This strategic move will empower the company to create targeted and personalized ad experiences that resonate with its massive user base of 270 million subscribers. [...] Netflix didn't say exactly how its in-house solution will change the way ads are delivered, but it's likely it'll move away from generic advertisements. According to the Financial Times, Netflix wants to experiment with "episodic" campaigns, which involve a series of ads that tell a story rather than delivering repetitive ads. During the presentation, Netflix also noted that it'll expand its buying capabilities this summer, which will now include The Trade Desk, Google's Display & Video 360 and Magnite as partners. Notably, competitor Disney+ also has an advertising agreement with The Trade Desk. Netflix also touted the success of its ad-supported tier, reporting that 40 million global monthly active users opt for the plan. The ad tier had around 5 million users within six months of launching.

Later this month, Comcast will launch a three-way bundle with Peacock, Netflix and Apple TV+. It will "come at a vastly reduced price to anything in the market today," said. Comcast chief Brian Roberts. Variety reports: The goal is to "add value to consumers" and at the same time "take some of the dollars out of" other companies' streaming businesses, he added, while reinforcing Comcast's broadband service offerings. Comcast's impending launch of the StreamSaver bundle come as other media companies have been assembling similar offerings. [...] Like the other streaming bundling strategies, Comcast's forthcoming Peacock, Netflix and Apple TV+ package is an effort to reduce cancelation rates (aka "churn") and provide a more efficient means of subscriber acquisition -- coming as the traditional cable TV business continues to deteriorate. Last week, Disney and Warner Bros. Discovery announced a three-way bundle comprising of Max, Disney+ and Hulu.

An anonymous reader shares a report: Disney Plus, Hulu, and Max are teaming up for a new bundle this summer, Netflix is focused on the WWE and celebrity boxing, Disney Plus is getting ESPN, and Bloomberg reported earlier this week that Max could get a price hike. A familiar refrain emerged around all this news: streaming is becoming cable TV all over again and getting crummier in the process.

And it's true! When streaming first emerged, it was a beautiful alternative to piracy, which was very convenient and very illegal, and cable, which was festooned with ads and weighed down by channels you were paying for and didn't want. Streaming gave you a world of content on demand for a fraction of the cost of cable. But that experience was never sustainable. Content costs money to make, and companies are apparently obligated to "increase revenue" and "make profit." This means Netflix spending billions of dollars a year on content isn't necessarily sustainable unless it's adding new users and monetizing them through some combination of ads and increasing subscription fees for stuff that used to be free, like sharing an account or streaming in 4K.

Millions of Americans pay for Netflix, doling out anywhere from $6.99 to $22.99 a month. It's a common belief that you can get out of recurring charges like this by canceling your credit card. Netflix won't be able to find you, and your account will just go away, right? You wouldn't be crazy for believing it, but it's a myth that canceling a credit card will definitely stop your recurring charges. From a report: Nearly 46% of Americans opened a new credit card last year, according to Forbes, which means millions of Americans also canceled old ones. When you switch cards, Netflix doesn't just stop your service -- they just start charging your new card. Granted, it might be easier to just cancel your Netflix subscription directly. There's a largely hidden service that enables Netflix and most other subscription services to keep throwing charges at you indefinitely.

"Banks may automatically update credit or debit card numbers when a new card is issued. This update allows your card to continue to be charged, even if it's expired," Netflix says in its help center. Most major card providers offer a feature that enables this, including Visa. In 2003, Visa U.S.A. started offering a new software product to merchants called Visa Account Updater (VAU), according to a 2003 American Banker article. The service works with a network of banks to create a virtual tracking service of Americans' financial profiles. Whenever someone renews, or switches a credit card within their bank, the institution automatically update the VAU. This system lets Netflix and countless other corporations charge whatever card you have on file.

In its third-quarter earnings call on Thursday, Microsoft reported a 30% drop in Xbox console sales, after reporting a 30% drop last April. "It blamed the nosedive on a 'lower volume of consoles sold' during the start of 2024," reports Kotaku. From the report: In February, Grand Theft Auto VI parent company Take-Two claimed in a presentation to investors that there were roughly 77 million "gen 9" consoles in people's homes. It didn't take fans long to do the math and speculate that Microsoft had only sold around 25 million Xbox Series X/S consoles to-date. That puts it ahead of the GameCube but behind the Nintendo 64, at least for now. Given the results this quarter as well, it doesn't seem like Game Pass and Starfield have moved the needle much. Maybe that will change once Call of Duty, which Microsoft acquired last fall along with the rest of Activision Blizzard, finally makes its way to Game Pass. Diablo IV only just arrived on the Netflix-like subscription platform this month. But given the fact that the fate of Xbox Series X/S appears to be locked in at this point, it's easy to see why Microsoft is looking at other places it can put its games.

Sea of Thieves, the last of four games in this initial volley to come to PS5, dominated the PlayStation Store's top sellers list last week on pre-orders alone. CEO Satya Nadella specifically called this out during a call with investors, noting that Microsoft had more games in the top 25 best sellers on PS5 than any other publisher. "We are committed to meeting players where they are by bringing great games to more people on more devices," he said. If players there continue to flock to the live-service pirate sim, it's not hard to imagine Microsoft bringing another batch of its first-party exclusives to the rival platform. Whether that means more recent blockbusters like Starfield or the upcoming Indiana Jones game will someday make the journey remains to be seen.

An anonymous reader quotes a report from the New York Times: The Federal Communications Commission voted on Thursday to restore regulations that expand government oversight of broadband providersand aim to protect consumer access to the internet, a move that will reignite a long-running battle over the open internet. Known as net neutrality, the regulations were first put in place nearly a decade ago under the Obama administration and are aimed at preventing internet service providers like Verizon or Comcast from blocking or degrading the delivery of services from competitors like Netflix and YouTube. The rules were repealed under President Donald J. Trump, and have proved to be a contentious partisan issue over the years while pitting tech giants against broadband providers.

In a 3-to-2 vote along party lines, the five-member commission appointed by President Biden revived the rules that declare broadband a utility-like service regulated like phones and water. The rules also give the F.C.C. the ability to demand broadband providers report and respond to outages, as well as expand the agency's oversight of the providers' security issues. Broadband providers are expected to sue to try to overturn the reinstated rules.

The core purpose of the regulations is to prevent internet service providers from controlling the quality of consumers' experience when they visit websites and use services online. When the rules were established, Google, Netflix and other online services warned that broadband providers had the incentive to slow down or block access to their services. Consumer and free speech groups supported this view. There have been few examples of blocking or slowing of sites, which proponents of net neutrality say is largely because of fear that the companies would invite scrutiny if they did so. And opponents say the rules could lead to more and unnecessary government oversight of the industry.

Earlier this week, Netflix found itself embroiled in an AI scandal when Futurism spotted AI-generated images used in the Netflix documentary What Jennifer Did.. The movie's credits do not mention any uses of AI, causing critics to call out the filmmakers for "potentially embellishing a movie that's supposed to be based on real-life events," reports Ars Technica. An executive producer of the Netflix hit acknowledged that some of the photos were edited to protect the identity of the source but remained vague about whether AI was used in the process. From the report: What Jennifer Did shot to the top spot in Netflix's global top 10 when it debuted in early April, attracting swarms of true crime fans who wanted to know more about why Pan paid hitmen $10,000 to murder her parents. But quickly the documentary became a source of controversy, as fans started noticing glaring flaws in images used in the movie, from weirdly mismatched earrings to her nose appearing to lack nostrils, the Daily Mail reported, in a post showing a plethora of examples of images from the film. [...]

Jeremy Grimaldi -- who is also the crime reporter who wrote a book on the case and provided the documentary with research and police footage -- told the Toronto Star that the images were not AI-generated. Grimaldi confirmed that all images of Pan used in the movie were real photos. He said that some of the images were edited, though, not to blur the lines between truth and fiction, but to protect the identity of the source of the images. "Any filmmaker will use different tools, like Photoshop, in films," Grimaldi told The Star. "The photos of Jennifer are real photos of her. The foreground is exactly her. The background has been anonymized to protect the source." While Grimaldi's comments provide some assurance that the photos are edited versions of real photos of Pan, they are also vague enough to obscure whether AI was among the "different tools" used to edit the photos.

Netflix on Thursday reported a 16% rise in memberships in the first quarter, reaching 269.6 million, beating Wall Street expectations. Starting next year, the company will no longer provide quarterly membership numbers or average revenue per user starting next year. CNBC reports: "As we've noted in previous letters, we're focused on revenue and operating margin as our primary financial metrics -- and engagement (i.e. time spent) as our best proxy for customer satisfaction," the company said in its quarterly letter to shareholders. "In our early days, when we had little revenue or profit, membership growth was a strong indicator of our future potential." Netflix said now that it is generating substantial profit and free cash flow -- as well as developing new revenue streams like advertising and a password-sharing crackdown -- its membership numbers are not the only factor in the company's growth. It said the metric lost significance after it started to offer multiple price points for memberships. The company said it would still announce "major subscriber milestones as we cross them."

Netflix also noted that it expects paid net additions to be lower in the second quarter compared to the first quarter "due to typical seasonality." Its second-quarter revenue forecast of $9.49 billion was just shy of Wall Street's estimate of $9.54 billion Shares of the company fell around 4% in extended trading. Netflix reported first-quarter net income of $2.33 billion, or $5.28 per share, versus $1.30 billion, or $2.88 per share, in the prior-year period. The company posted revenue of $9.37 billion for the quarter, up from $8.16 billion in the year-ago quarter.