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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)

Kiara Grace is a staff writer at VORNews, a reputable online publication. Her writing focuses on technology trends, particularly in the realm of consumer electronics and software. With a keen eye for detail and a knack for breaking down complex topics, Kiara delivers insightful analyses that resonate with tech enthusiasts and casual readers alike. Her articles strike a balance between in-depth coverage and accessibility, making them a go-to resource for anyone seeking to stay informed about the latest innovations shaping our digital world.

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

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Boeing whistleblower John Barnett committed suicide, according to a police report released on Friday, bringing an investigation into the shocking death of a longtime employee who raised concerns about the airplane manufacturer’s safety and production standards – and who sued the company, alleging illegal retaliation against him.

Barnett, 62, was discovered dead in a vehicle on March 9 from a self-inflicted gunshot wound in Charleston, South Carolina. Officers were summoned to perform a welfare check on Barnett at a Holiday Inn after he failed to appear for a deposition in his complaint against Boeing, according to his lawyers and a police incident report.

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

When responding officers arrived, they discovered Barnett deceased in the driver’s seat of a truck in the parking lot. He was clutching a firearm. The initial police report also stated a message in the truck.

However, in a statement released after his death, Barnett’s lawyers stated that his deposition was nearing completion and that he appeared to be in high spirits.

“We saw no sign that he would commit suicide. “No one can believe it,” his attorneys, Robert Turkewitz and Brian Knowles, stated in a statement on March 12. “The Charleston police need to investigate this fully and accurately and tell the public what they find out.”

The Charleston Police Department announced Friday that the Charleston County Coroner’s Office had decided that Barnett had committed suicide.

The inquiry revealed that Barnett was shot in the head at close range, with the firearm located in his right hand. A notebook was also discovered in the front seat of the car, indicating that “he was going through a period of serious personal distress,” according to a police press statement.

Police provided CNN with a photograph of a note left in the car, which had several nasty statements addressed at Boeing.

“As this investigation comes to a close, we should not forget it represents the loss of Mr. Barnett’s life,” police stated. “We extend our deepest sympathies to his family during this difficult time and hope they continue to find the strength to persevere in absence.”

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Boeing did not immediately respond to requests for comment. In March, the firm expressed its sadness at Barnett’s death.

“Our thoughts are with his family and friends,” the business stated.

Barnett, a former quality manager who had worked at Boeing for decades, told the New York Times in 2019 that he had uncovered dangerous wiring clusters in Boeing’s manufacturing procedures that could have resulted in an aircraft’s catastrophic failure if severed by surrounding metal slivers.

“As a quality manager at Boeing, you’re the last line of defense before a defect makes it out to the flying public,” Barnett told the New York Times. “And I haven’t seen a plane out of Charleston yet that I’d put my name on saying it’s safe and airworthy.”

In a message issued to the facility’s employees and sent to CNN at the time, Brad Zaback, a site leader at the plant and general manager of the 787 program, stated that the Times’ coverage “paints a skewed and inaccurate picture of the program and of our team (at the plant).”

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Boeing Whistleblower Died By Suicide, Police Investigation Reveals

Zaback, who said the Times denied an invitation to tour the company, stated that “quality is the bedrock of who we are” and that the plant produces “the highest-quality airplanes.”

Since Barnett’s original public warnings about Boeing, the corporation has had multiple high-profile safety and quality issues, including the explosion of a door stopper on a 737 Max shortly after takeoff last January. This prompted the US Justice Department to announce that Boeing could face criminal charges for its history of safety issues.

SOURCE – (AP)

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Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

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For the nation’s bicycle stores, the last several years have certainly felt like the business version of the Tour de France, with innumerable twists and turns testing their stamina.

Early in the pandemic, a surge in interest in cycling drove sales up 64% to $5.4 billion in 2020, according to Circana, the retail tracking firm. It wasn’t uncommon for some stores to sell 100 or more bikes in a few days.

The boom did not last. Due to pandemic-related supply chain challenges, the retailers sold out of bikes and struggled to replenish. Inventory has caught up, but fewer people require new bicycles. Bicycle manufacturers have started lowering prices to clear off excess inventory. It all adds up to a challenging climate for retailers, with a few bright areas such as dirt and e-bikes.

“The industry had a hard time keeping up with demand for a couple of years, but then demand slowed as the lockdowns ended, and a lot of inventory started showing up,” said Stephen Frothingham, editor-in-chief of Bicycle Retailer & Industry News. “So now for the last, a year and a half, the industry has struggled with having too much inventory, at the supplier level, at the factory level, at the distributor level, at the retail level.”

Circana reports that bike sales will reach $4.1 billion in 2023, up 23% from 2019 but down 24% from 2020. The recovery from the epidemic has been uneven, with large businesses such as REI and Scheels recovering faster than independent bike shops, according to Matt Tucker, director of client development for Circana’s sports equipment business.

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Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

John McDonell, owner of Market Street Cycles on San Francisco’s famed Market Street, says the pandemic’s shift to hybrid labor has been especially difficult for business. During the summer, 3,000 bikes would pass by his shop each day. With fewer individuals commuting to work, that number has dropped to less than 1,000.

According to Pacer.ai, which tracks people’s activities based on smartphone usage, San Francisco falls behind all other major cities regarding workers returning to work, with office visits down 49% from April 2019.

“Our downtown is still a wasteland,” McDonell explained.

Independent bike stores now compete not only with national chains but also with bike manufacturers such as Specialized and Trek. These companies have been buying bike shops and selling their bikes directly to customers, thus eliminating the middleman. According to Frothingham, there are now over 1,000 bike shops in the country that are either owned by Trek or Specialized.

“They’ve got the money to absorb the fact that bike stores, you know, are not a super profitable thing, and in the process, they’ve also been able to cut us out of it,” McDonell stated.

McDonell has been obliged to use a skeleton team of himself and another employee, down from five earlier. His desire to sell his shop to a younger bike enthusiast when he retires is diminishing. He might close his store when his lease expires in a few years.

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Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“Now I am just trying to land it with both engines on fire and trying not to lose money on my way out,” he stated

Douglas Emerson’s bike business, University Bicycles, in Boulder, Colorado, is doing better, thanks to its placement in one of the country’s most popular biking destinations. He’s owned the shop for 39 years and employs 30 people.

University Bicycles, like other bike retailers, experienced a surge in bike sales due to the pandemic. Emerson recalls selling 107 bicycles in 48 hours. However, immediately following the boom, sales fell considerably due to a lack of inventory, and rentals declined because no one was traveling.

“It became a struggle right after the boom,” Emerson explained. “Since then, manufacturers have overproduced.” In addition, they have significantly reduced prices, which benefits consumers. However, tiny retailers generally cannot take advantage of those discounts.”

Emerson claims the shop hit a “saturation point” when everyone who wanted a bike purchased one. He now sells these consumer items such as jackets, helmets, and locks. His store has returned to its 2019 sales figures.

University Bicycles has also benefited from some of the changes in purchasing trends. The continued strong demand for e-bikes and the increased need for children’s bikes have contributed. Gravel bikes, which can be ridden on both paved and dirt routes, are displacing road cycles as a top seller.

John Ruger, a 50-year biker and faithful University Bicycles client, hasn’t purchased a bike in ten years but intends to buy a gravel bike at present costs. He says a top gravel bike he’s interested in, which would normally cost $12,000 to $14,000, is presently on sale for $8,000.

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Pixa Bay – VOR News Image

Bike Shops Boomed Early In The Pandemic. It’s Been A Bumpy Ride For Most Ever Since

“The timing is good,” he remarked. “I can get a bike now because they’re less expensive and my bikes are getting old.”

Shawna Williams, the owner of Free Range Cycles in Seattle, Washington, did not see the same sales boom as others because her 700-square-foot business was so small that she only accepted customers by appointment from March 2020 to May 2021.

However, Williams did have to deal with the coming shortages. She spent a great deal of time “checking in with other shops to see if we could buy something, even at retail, from them, just in order to get a repair done or a build done.”

She expanded her service offerings, such as repairs and maintenance, to compensate for decreasing bike sales. Despite the epidemic, the maneuvering allowed her to maintain consistent overall sales.

“Bike sales, the way that I have kind of framed the shop, are an awesome bonus, but we really need to be sustaining the shop through repair and, like, thoughtful accessory sales,” Williams stated. “A bike sale to me, if we do things well, that means creating a customer for life.”

SOURCE – (AP)

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

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OpenAI and Reddit have partnered to deliver the social media platform’s content to ChatGPT.

Reddit’s share price increased by more than 10% before the market opened on Friday.

Reddit stated in a blog post that the partnership will grant OpenAI access to its data application programming interface, which provides real-time, structured, and unique content from the platform.

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

Reddit users and moderators will also have access to new artificial intelligence-powered services, and OpenAI will be a Reddit advertising partner.

“Reddit has become one of the internet’s largest open archives of authentic, relevant, and always up-to-date human conversations about anything and everything,” co-founder and CEO Steve Huffman stated. “Including it in ChatGPT upholds our belief in a connected internet, helps people find more of what they’re looking for, and helps new audiences find community on Reddit.”

Reddit stated that the agreement is consistent with prior content arrangements and does not modify its data API or developer rules. These rules state that content obtained via Reddit’s data API cannot be utilized for commercial reasons without the platform’s approval.

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

Reddit says API access remains free for non-commercial use under the published level.

“We are thrilled to partner with Reddit to enhance ChatGPT with uniquely timely and relevant information, as well as to explore the possibilities of enriching the Reddit experience with AI-powered features,” Brad Lightcap, OpenAI’s chief operating officer, said in a statement.

Reddit made its Wall Street debut in March, with investors driving the company’s worth to nearly $9 billion seconds after it started trading on the New York Stock Exchange.

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OpenAI, Reddit Teaming In Deal That Will Bring Reddit’s Content To ChatGPT

Reddit has a sizable audience that visits the site regularly to debate a wide range of topics, from stupid memes to existential concerns, and receive suggestions from like-minded individuals.

OpenAI CEO Sam Altman invested in Reddit early on, becoming one of the company’s largest owners.

SOURCE – (AP)

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