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Netflix’s Password-Sharing Crackdown Reels In Subscribers As It Raises Prices For Its Premium Plan

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SAN FRANCISCO—— Netflix revealed on Wednesday that it has gained more midsummer subscribers than anticipated by industry analysts. This suggests that the video streaming service’s efforts to restrict password sharing successfully convert previous freeloaders into paying customers.

Netflix also announced that to generate even more revenue, the cost of its most expensive streaming service in the United States would increase by $2 to $23 per month or 10% and that its cheapest, ad-free streaming plan would cost $12 or another $2 increase. The $15.50 monthly price for the most popular streaming option on Netflix in the United States and the $7 monthly plan with intermittent commercials will both remain unchanged.

Additionally, pricing increased for subscribers in the United Kingdom and France.

From July to September of last year, the organization acquired an additional 8.8 million subscribers globally, more than three times the number acquired at the same time in the previous year. During that period, Netflix struggled to regain customers after experiencing a decline in the first half of last year. As a result, Netflix now has approximately 247 million subscribers globally, which is significantly more than the 243.8 million predicted by analysts surveyed by FactSet Research.

Additionally, Netflix’s financial performance exceeded analysts’ estimates, determining investor anticipation. In addition to revenue increasing 8% to $8.54 billion, the Los Gatos, California-based firm earned $1.68 billion, or $3.73 per share, a 20% increase from last year.

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Netflix’s Password-Sharing Crackdown Reels In Subscribers As It Raises Prices For Its Premium Plan.

In extended trading, the company’s stock price increased by over 12 percent following the release of its most recent quarterly results. As accumulating evidence that its video streaming service is outperforming the majority in a crowded field of competitors that are challenging the financial limits of many households, Netflix shares have increased by about 30% so far this year.

Already surpassing the 8.9 million subscribers it gained for the previous year, Netflix has amassed over 16 million subscribers through the initial nine months of this year. However, this figure remains a small portion of the over 36 million additional subscribers that Netflix acquired in 2020 when the service capitalized on the pandemic as a lucrative opportunity to entertain individuals confined to their homes.

Despite progress in gaining subscribers this year, there has been labor unrest in the entertainment industry, partially fueled by writers’ and actors’ grievances regarding inequitable compensation offered by video streaming platforms like Netflix. By utilizing a backlog of completed U.S. television series and films, as well as productions produced in international markets unaffected by the labor disputes, the organization has managed to endure the writers’ strike that was recently resolved and the subsequent strike by actors.

Netflix estimates spending around $17 billion on television series and films in the coming year, ostensibly to restore its library of original content once everyone returns to work.

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Netflix’s Password-Sharing Crackdown Reels In Subscribers As It Raises Prices For Its Premium Plan.

As a result of Netflix’s decision to discontinue the practice of granting subscribers the ability to disclose their account passwords to individuals outside their residences, a greater number of viewers who had previously accessed the video service without charge have registered for their accounts. Additionally, the enforcement has benefited Netflix by permitting current subscribers to charge higher monthly fees for using their accounts by individuals residing outside their households.

Netflix co-CEO Greg Peters responded, “We are extremely pleased with how things have been going,” in response to a question regarding the password-sharing enforcement during a video conference call on Wednesday. He forecasted that the crackdown would result in additional subscriber gains for at least several more quarters as Netflix confronts an increasing number of “borrower households” regarding unauthorized viewing of the service’s content.

The evident triumph of the assault on password sharing may enable the administration to allocate resources towards alternative revenue-generating strategies, such as introducing an advertising-supported low-priced option a year ago.

The decision by them to allow commercials on its service has yet to be a significant success. However, Uday Cheruvu, an analyst at Harding Loevner, believes that this will change as advertisers realize that the personal information the company has gleaned from viewers’ entertainment preferences can be used to target commercials at consumers most likely to purchase their products, just as Google and Facebook have been doing for years. During the video conference call, Peters stated that Netflix is already collaborating with its advertising partner, Microsoft, to more precisely target its commercials.

“I believe Netflix’s advertising potential is undervalued,” stated Cheruvu. “The level of audience engagement with the video advertisements on that platform may be several times greater than that of a social media platform.”

In a letter to shareholders, Netflix stated that approximately 30% of its new subscribers are selecting the $7 plan with advertisements, a trend that is likely to increase advertiser spending. The increased cost of Netflix’s premium plans may discourage some users from switching to the ad-supported alternative.

“The era of’streamflation’ has arrived, and consumers can anticipate price increases, limits on password sharing, and ad-supported options,” said Scott Purdy, U.S. media leader for KPMG.

SOURCE – (AP)

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2024: Starbucks And Workers United, Long At Odds, Say They’ll Restart Labor Talks

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Starbucks and the union representing its employees in the United States said Tuesday that they have agreed to begin negotiations to achieve a labour agreement.

The announcement was a watershed moment for the two parties, who had been at odds since Workers United initially organised baristas at a Starbucks location in Buffalo, New York, in late 2021.

“Starbucks and Workers United have a shared commitment to establishing a positive relationship in the interests of Starbucks partners,” the company stated. Workers United reiterated these remarks in a similar statement.

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Starbucks And Workers United, Long At Odds, Say They’ll Restart Labor Talks

Workers in more than 370 company-owned Starbucks stores in the United States have voted to unionise but have yet to reach a labour agreement with Starbucks.

The process has been cruel. Federal courts have sometimes ordered Starbucks to restore employees fired after leading unionisation efforts at their locations. The National Labour Relations Board’s regional offices have also filed at least 120 complaints against Starbucks for unfair labour practices, including refusing to bargain and reserving wage hikes and other benefits for non-union employees.

Starbucks stated Tuesday that, as a gesture of goodwill, it will provide workers in unionised locations the benefits promised in May 2022, including the option for customers to tip their credit card purchases.

Starbucks was the first to say it desired a better relationship with the union. In December, the corporation stated it intended to reopen labour negotiations to ratify contract agreements by 2024. Before that, the two parties had not spoken in seven months.

During last week’s conversations, the two sides agreed there was “a constructive path forward on the broader issue of the future of organising and collective bargaining at Starbucks.”

starbucks

Starbucks And Workers United, Long At Odds, Say They’ll Restart Labor Talks

On Tuesday, Starbucks and Workers United announced that they will also consider ending their case. Starbucks sued Workers United in October, alleging that a pro-Palestinian social media post from a union account early in the Israel-Hamas conflict enraged hundreds of customers and harmed the company’s brand.

The corporation insisted that the union not use its name or likeness. Workers United countersued, claiming Starbucks defamed the union and indicated it backed terrorism.

starbucks

Starbucks And Workers United, Long At Odds, Say They’ll Restart Labor Talks

“While there is plenty of work ahead, coming together to develop this framework is a significant step forward and a clear demonstration of a shared commitment to working collaboratively and with mutual respect,” the organisation said. Starbucks repeated the comments.

SOURCE – (AP)

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FAA Gives Boeing 90 Days To Come Up With A Plan To Address Quality Issues

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The Federal Aviation Administration imposed a 90-day deadline for Boeing to address quality and safety issues.

According to the agency, FAA Administrator Mike Whitaker and Boeing CEO Dave Calhoun met for a full day on Tuesday, during which Whitaker made the demand.

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FAA Gives Boeing 90 Days To Come Up With A Plan To Address Quality Issues

That discussion occurred the day after a year-long FAA-commissioned investigation discovered a “disconnect” between Boeing executives and employees about safety, with employees fearing transfer or stopped career progression for reporting safety issues.

The discussion came ahead of the expected release of a six-week FAA investigation of Boeing’s production line, which was prompted by investigators discovering that key bolts were not put on a Boeing 737 Max 9 door plug that burst open during flight.

The FAA stated that the Boeing plan must address shortcomings in the company’s Safety Management System, or SMS, and integrate the SMS programme with another quality programme. SMS is a guidebook designed to guide staff through the procedures necessary to ensure the safety of flights.

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FAA Gives Boeing 90 Days To Come Up With A Plan To Address Quality Issues

However, despite a comprehensive rewrite of the handbook in recent years, the panel discovered that “many Boeing employees did not demonstrate knowledge of Boeing’s SMS efforts, nor its purpose and procedures.”

The group that reported on Boeing’s safety inadequacies on Monday suggested that the firm resolve those flaws within six months; the FAA’s new directive sets a shorter deadline.

faa

FAA Gives Boeing 90 Days To Come Up With A Plan To Address Quality Issues

Boeing’s proposal must result in a “measurable, systemic shift in manufacturing quality control,” according to the FAA.

Boeing has a history of safety breaches. The January 5 blowout incident resulted in a 19-day emergency grounding of all Max 9s and renewed scrutiny of Boeing following the tragic Max 8 disasters in 2018 and 2019.

SOURCE – (CNN)

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Jacob Rothschild, Financier From A Family Banking Dynasty, Dies At 87

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LONDON ROTHSCHILD — his family announced that Jacob Rothschild, 87, a financier and philanthropist from the legendary Rothschild banking line, died on Monday.

Jacob began his career in 1963 at the family bank, NM Rothschild & Sons, before branching out to develop enterprises and charity organisations. His family paid tribute to him in a statement.

“Our father Jacob was a towering presence in many people’s lives, a superbly accomplished financier, a champion of the arts and culture, a devoted public servant, a passionate supporter of charitable causes in Israel and Jewish culture, a keen environmentalist and much-loved friend, father and grandfather,” a statement from his family stated.

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Jacob Rothschild, Financier From A Family Banking Dynasty, Dies At 87

“He will be buried in accordance with Jewish custom in a small family ceremony, and there will be a memorial at a later date to celebrate his life,” they continued, without revealing any other information.

According to last year’s Sunday Times Rich List, the Rothschild family is worth approximately 825 million pounds ($1 billion). It donates millions of pounds to Jewish interests, education, and art.

Former British Prime Minister Tony Blair was one of the political and cultural heavyweights who paid tribute to Rothschild. Blair lauded him as a “towering figure in Britain’s Jewish community” and praised his efforts to promote Middle East peace.

Jacob was born in Berkshire, west of London. He attended Eton College and studied history at Christ Church College, Oxford University.

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Jacob Rothschild, Financier From A Family Banking Dynasty, Dies At 87

After leaving the Rothschild Bank, he took over Rothschild Investment Trust, now RIT Capital Partners. He served as chairman of the business, one of the largest investment trusts on the London Stock Exchange, until 2019.

He also co-founded the then-J Rothschild Assurance Group, now St James’s Place, with Mark Weinberg in 1980 and served as deputy chairman of what was then BSkyB Television, among other duties.

In the cultural sector, he served as chairman of the National Gallery of London’s board of trustees and the National Lottery Heritage Fund.

rothschild

Jacob Rothschild, Financier From A Family Banking Dynasty, Dies At 87

The Rothschild Foundation, which manages the family’s former home, the country house Waddesdon Manor, announced that Jacob Rothschild’s daughter Hannah will follow him as chair.

Jacob was married to Serena for over 50 years until she died in 2019. They have four children (Hannah, Beth, Emily, and Nat) and several grandchildren.

SOURCE – (AP)

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