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Big Tech Wants to Tell You Who Counts as Your Family [Cory Doctorow, The Atlantic]

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• Netflix recently unveiled a new password-sharing policy, which allows members of the same “household” to share an account.
• This policy is more of an anti-password-sharing policy, and assumes that there is a universal meaning of “household” and that software can determine who is and is not a member of a household.
• The Electronic Frontier Foundation was involved in a forum created by the industry consortium Digital Video Broadcasting (DVB) to limit video sharing to a single household.
• The forum rejected the suggestion of a family based in Manila, whose dad travels to remote provinces to do agricultural labor, whose daughter works as a nanny in California, and whose son does construction work in the United Arab Emirates as an “edge case.”
• After 9/11, people had to perform the bureaucratic rite of standardizing their name for recognition by machines with their database schema.
• Netflix is part of the “enshittification” cycle, in which the platform company first allocates surpluses to its users, lures them in, and then reallocates surpluses to businesses.

Published February 7, 2023
Visit The Atlantic to read Cory Doctorow’s original post Big Tech Wants to Tell You Who Counts as Your Family

Netflix’s New Chapter [Ben Thompson, Stratechery]

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• Netflix was founded by Marc Randolph and funded by Reed Hastings, who eventually took over as CEO.
• In 2004, Blockbuster launched Blockbuster Online, which caused Netflix’s stock to plunge.
• Netflix waited out Blockbuster, knowing that the company was carrying $1 billion in debt and would eventually have to raise prices.
• Blockbuster responded by cutting prices and launching Total Access, which was a great bargain for customers.
• Netflix eventually offered to buy Blockbuster Online, but the offer was declined.
• In recent years, Netflix has faced competition from other streaming services, which has caused revenue growth to slow.
• Netflix believes that some of its competitors will seek to build sustainable, profitable businesses in streaming, and that its focus as a pure-play streaming business is an advantage.
• Netflix is now profitable and generating positive free cash flow, while its competitors are struggling to make money in streaming.
• Netflix has an advantage as a pure-play streaming business, and its aim is to be the first choice in entertainment.
• Netflix gets less leverage off of its international content than it once hoped for, and its old content holds less value than bulls once assumed.
• Reed Hastings stepped up to the CEO role and shifted the company’s culture away from Randolph’s family of creators to a top-down organization.
• Hastings excelled at execution, but the chief task for Netflix going forward is creativity and producing compelling content at scale.

Published January 23, 2023
Visit Stratechery to read Ben Thompson’s original post Netflix’s New Chapter

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