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The AI chatbot coming for your job, ‘Swifties’ take on Ticketmaster, and Apple sued for AirTag stalking
13:31
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CNN
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The AI chatbot coming for your job, ‘Swifties’ take on Ticketmaster, and Apple sued for AirTag stalking
13:31
– Source:
CNN
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New York
CNN Business
—
Fans of the popular first-person shooter game “Call of Duty” may soon have more options for where they can play it.
Microsoft said late Tuesday it has reached a 10-year deal to bring the 19-year-old game franchise to Nintendo after its acquisition of Activision Blizzard, which makes the game, is completed. The deal is pending regulatory approval.
The news came one day after Microsoft president Brad Smith wrote in a Wall Street Journal opinion piece that the Redmond, Washington-based company offered a 10-year contract for “Call of Duty” to work with Sony’s PlayStation console. (Microsoft reportedly made another offer earlier this year). Sony did not immediately respond to a request for comment.
The Nintendo deal is the latest attempt by Microsoft to ease concerns that its blockbuster acquisition of the gaming giant could harm competition in the industry.
Microsoft announced plans to acquire Activision Blizzard in January in a deal valued at nearly $70 billion, which would be one of the biggest ever in the tech industry. The move could boost Microsoft’s standing in the gaming industry, as its Xbox console trails behind Sony’s PlayStation and the Nintendo Switch.
Microsoft head of gaming Phil Spencer announced the commitment with Nintendo in a tweet and said it will continue to offer “Call of Duty” on gaming platform Steam if the deal is completed. “Microsoft is committed to helping bring more games to more people – however they choose to play,” he said.
The company’s decision to bring “Call of Duty” to Nintendo comes as Microsoft’s Activision deal faces regulatory scrutiny on both sides of the Atlantic. The US Federal Trade Commission reportedly plans to sue Microsoft to block the Activision acquisition.
But Smith this week defended the strategy, saying a block of the deal would be “a huge mistake.”
“It would hurt competition, consumers and thousands of game developers,” he wrote in the Wall Street Journal.
He argued that Microsoft faces “huge challenges” in the gaming industry, and the potential acquisition of Activision Blizzard could allow Microsoft to compete against these companies “through innovation that would benefit consumers.”
Microsoft also wants to offer the option for customers to subscribe to a cloud gaming service that lets them stream a variety of games on multiple devices for a “reasonable” fee, Smith said. The company is open to providing the same commitment to other platforms, which would be legally enforceable by regulators in the United States, the United Kingdom and the European Union.
According to Eric Abbruzzese, an analyst at ABI Research, the effort to open up access to its games shows Microsoft is “scrambling” to overcome regulatory hurdles.
“If the offer helps the deal finalize, then that is a huge win that flies under the radar with ‘Call of Duty’ in the headlines,” he said. “But offering a single entity for a limited time would not be enough to circumvent regulation, as it is temporary and narrow in scope.”
“Call of Duty” is arguably the most popular game title today, so the impact to consumers is notable. As of 2020, the game had topped 250 million downloads worldwide, according to data from SensorTower, an analytics firm that tracks app downloads.
“Nintendo is not a high priority for ‘Call of Duty,’ all things considered – it has done perfectly fine without being on Nintendo recently,” Abbruzzese added. “Keeping it on Steam for the PC market is significant though, and obviously if this offer convinces Sony to accept as well, that’s gigantic.”
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CNN
—
If you were worried about how much money you could blow on apps before, buckle up.
Apple
(AAPL) on Tuesday said it is adding 700 new price points for apps in its App Store, starting as low as $0.29 and running all the way up to $10,000, though the very high-end is available “upon request” by developers only.
The changes follow a $100 million settlement with developers in August 2021 in which the company pledged to expand the price points developers can offer to consumers, among other changes. At the time, Apple said it “will help make the App Store an even better business opportunity for developers.”
It also comes as Apple has faced scrutiny for the restrictions and fees it places on developers, including the 30% commission the company takes from some of the apps listed in its app store.
Apple last year made it easier for some media companies to avoid the fees, but the company continues to face criticism from Elon Musk, Fortnite-maker Epic and others for the cut it takes.
In addition to the new price points, Apple said Tuesday it is rolling out new tools intended to make it easier for developers to set prices based on country or region and manage foreign exchange rate changes and more.
It said the new pricing enhancements will be available for apps offering auto-renewing subscriptions starting on Tuesday, and for other apps and in-app purchases next spring.
In total, there are now 900 different price points for apps in Apple’s App Store. The new price points available include every $0.10 mark from the minimum up to $10, and every $0.50 between $10 and $50.
While seeing a $10,000 price tag next to an app could come as shock, the App Store is no stranger to costly apps. Some apps, such as piano tuning app Cyber Tuner, are currently priced at $999.99.
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New York
CNN Business
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Taiwan Semiconductor Manufacturing Company is upping its investment in the United States, announcing Tuesday that it’s building a second semiconductor factory in Arizona and raising its investment there from $12 billion to $40 billion.
TSMC’s plans come as tensions between Washington and Beijing are rising over chips, with President Joe Biden imposing a sweeping set of controls on the sale of advanced chips and chip-making equipment to Chinese firms.
Biden visited the manufacturer’s site in Phoenix and spoke about bringing jobs and investment to Arizona, calling TSMC’s $40 billion commitment “the largest foreign investment in the history of this state.” Other lawmakers and business leaders also attended the event, including Apple CEO Tim Cook.
“American manufacturing is back, folks,” Biden said at the event. “These are the most advanced semiconductor chips on the planet, chips that will power iPhones and MacBooks, as Tim Cook can attest … It could be a game changer.”
In his remarks, Cook said: “As many of you know, we work with TSMC to manufacture the chips that help power our products all over the world, and we look forward to expanding this work in the years to come as TSMC forms new and deeper roots in America.” He added that with the opening of the new facility, Apple’s own Silicon chips “can be proudly stamped ‘Made in America.’”
TSMC previously announced that it was building a $12 billion facility in Arizona that will eventually manufacture 3-nanometer chips, TSMC’s most advanced technology. Between the two factories, thousands of “high-paying high-tech jobs” will be added to the state and 600,000 wafers per year will be produced, the company said.
TSMC accounts for an estimated 90% of the world’s super-advanced computer chips, supplying tech giants including Apple
(AAPL) and Qualcomm
(QCOM).
Chips are an indispensable part of everything from smartphones to washing machines — but are also difficult to make because of the high cost of development and the level of knowledge required, meaning much of the production is concentrated among a handful of suppliers.
The White House is touting the new investments as a direct result of Biden’s economic plan, including the $200 billion CHIPS and Science Act. Biden has been visiting communities where companies like TSMC and Intel have announced new investments since the passage of the law this summer.
“It means more workers in these major factories, but it also means more opportunities for suppliers and contractors, good paying construction jobs, opportunities for small and medium sized manufacturers and suppliers,” National Economic Council Director Brian Deese told reporters in a call on Monday. “It means economic opportunity for communities that have often been left behind in economic cycles, including traditional energy communities that have powered our nation for generations and tribal nations.”
The global chip shortage first surfaced at the beginning of the pandemic, which upended supply chains and changed consumer shopping patterns. Automakers cut back on their orders for chips while tech companies, whose products were boosted by lockdown living, snapped up as many as they could.
The facility Biden will visit Tuesday in Phoenix is slated to begin producing chips in 2024. The new facility should start production in 2026.
– CNN’s Nikki Carvajal, Wayne Chang, Clare Duffy and Diksha Madhok contributed to this report.
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CNN Business
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Apple supplier Foxconn says it is “gradually” restoring production capacity at its sprawling campus in central China, which has been hit by Covid-19 restrictions and worker protests since October.
The “epidemic situation” at the facility, known as iPhone City and normally home to hundreds of thousands of workers, has been brought under control, the Taiwanese contract manufacturer said in a statement on Monday.
“We have also started to recruit new employees, and are gradually moving toward the direction of restoring production capacity to normal,” it said, adding that the outlook for the fourth quarter was expected to be in line with market consensus.
Foxconn did not provide further details. Its executives were quoted as telling Reuters that full production would resume between late December and early January.
The ongoing supply disruptions at Foxconn’s campus in the city of Zhengzhou were costing Apple roughly $1 billion a week in lost iPhone sales, Daniel Ives, an analyst at Wedbush Securities, had told CNN Business. He estimates that Apple is short of between 10 million and 15 million iPhones in the vital holiday shopping season.
The troubles started in October when workers left the campus because of concerns about working conditions and shortages of food. Short on staff, bonuses were offered to workers to return.
But protests broke out last month when newly-hired staff said management had reneged on their promises. Workers clashed with security officers, before the company eventually offered them cash to quit and leave.
Analysts said the production woes at iPhone City would speed up the pace of Apple’s supply chain diversification away from China.
In recent weeks, according to The Wall Street Journal, Apple
(AAPL) has accelerated plans to shift some of its production outside China. It was reportedly telling suppliers to plan more actively for assembling Apple
(AAPL) products elsewhere in Asia, particularly India and Vietnam.
Apple did not immediately respond to a request for comment.
“The shift out of China will not be easy and come with clear logistical, engineering, and infrastructure hurdles as the aggressive move to India and Vietnam now begins with the Apple ecosystem alerted,” Ives wrote in a research report on Sunday.
If Apple moves aggressively, more than 50% of iPhone production could come from India and Vietnam by the 2025/2026 fiscal year, versus the single-digit percentage currently, he added.
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The investigation into the murders of four University of Idaho students is entering a critical stage in its third week, as police are starting to receive forensic testing results from the crime scene, law enforcement experts tell CNN.
Dozens of local, state and federal investigators have yet to identify a suspect or find the murder weapon used in the attack last month in Moscow.
The public, as well as the victims’ family members, have criticized police for releasing little information, in what at times has been a confusing narrative.
But the complex nature of a high-level homicide investigation involves utmost discretion from police, experts say, because any premature hint to the public about a suspect or the various leads police are following can cause it to fall apart.
“What police have been reluctant to do in this case is to say they have a suspect, even though they have had suspects who have risen and fallen in various levels of importance, because that’s the nature of the beast,” said John Miller, CNN chief law enforcement analyst and former deputy commissioner of intelligence and counterterrorism for the New York Police Department.
“Police having no suspects is factually incorrect,” Miller said. “Police have had a number of suspects they’ve looked at, but they have no suspect they’re willing to name. You don’t name them unless you have a purpose for that. That’s not unusual.”
The victims – Ethan Chapin, 20; Kaylee Goncalves, 21; Xana Kernodle, 20; and Madison Mogen, 21 – were found stabbed on the second and third floors of their shared off-campus home on November 13, according to authorities.
The quadruple murder has upended the town of 26,000 residents, which had not recorded a single murder since 2015, and challenged a police department which has not benefited from the experience of investigating many homicides, let alone under the pressure of a national audience, Miller says.
The Moscow Police Department is leading the investigation with assistance from the Idaho State Police, the Latah County Sheriff’s Office and the FBI, which has assigned more than 40 agents to the case across the United States.
“They have really coordinated this into over 100 people that are operating as one team,” Miller said of the homicide investigation.
The FBI plays three important roles in the Idaho investigation, according to Miller.
The first involves its behavioral science unit, which is highly valuable for cases with an unknown offender because it narrows the scope of offender characteristics.
The second is its advanced technology, such as its Combined DNA Indexing System, which allows law enforcement officials and crime labs to share and search through thousands of DNA profiles.
Lastly, the FBI has 56 field offices in major cities throughout the country, which can expand the reach and capability of the investigation.
“The FBI brings a lot to this, as well as experience in a range of cases that would be beyond what a small town typically would have,” Miller said.
Every homicide investigation begins with the scene of the crime, which allows investigators only one chance to record and collect forensic evidence for processing, which includes toxicology reports on the victims, hair, fibers, blood and DNA, law enforcement experts say.
“That one chance with the crime scene is where a lot of opportunities can be made or lost,” Miller said.
Extensive evidence has been collected over the course of the investigation, including 113 pieces of physical evidence, about 4,000 photos of the crime scene and several 3D scans of the home, Moscow police said Thursday.
“To protect the investigation’s integrity, specific results will not be released,” police said.
Latah County Coroner Cathy Mabbutt told CNN she saw “lots of blood on the wall” when she arrived at the scene and police said “some” of the victims had defensive wounds.
Chances are “pretty high” a suspect could have cut themselves during the attack, so police are looking carefully at blood evidence, says Joe Giacalone, adjunct professor at John Jay College of Criminal Justice and retired NYPD sergeant who directed the agency’s Homicide School and Cold Case Squad.
Lab results from the scene can be returned to investigators fairly quickly, but in this case investigators are dealing with mixtures of DNA, which can take longer, he says.
“When you have several donors with the DNA, then it becomes a problem trying to separate those two or three or four. That could be part of the issue … toxicology reports can sometimes take a couple of weeks to come back,” Giacalone added.
The next stage in a homicide investigation is looking at the behavioral aspects of the crime. Two agents with the FBI’s Behavior Analysis Unit were assigned to the case to assess the scene and go over evidence to learn about the suspect or suspects’ behavior, based on the way they carried out the crime, Miller says.
“Understanding the victimology in a mystery can be very important, because it can lead you to motivation, it can lead you to enemies and it can lead you to friends,” he said.
Investigators will learn every detail about the four victims, their relationships with each other and the various people in their lives, Miller says. This includes cell phone records and internet records, he says, as well as video surveillance from every camera surrounding the crime scene.
“When you do an extensive video canvass, you may get a picture of a person, a shadowy figure, and then if you have a sense of direction, you can string your way down all the other cameras in that direction to see if that image reappears,” Miller said.
At this stage, investigators rely on the FBI’s Violent Criminal Apprehension Program, which collects and analyzes information about violent crimes in the United States.
The program can match a suspect’s DNA found at the scene with that of a person who is already in the system. It also scans all crimes across the country to determine if the way the attack was carried out mirrors a previous one, pointing to the same perpetrator, Miller says.
“You always start with people who are close to the victims, whether it’s love, money or drugs,” Giacalone told CNN. “That’s generally the first step that you take because most of us are victimized by someone we know. We have to ask things like, who would benefit from having this person or in this case, a group, killed?”
In an effort to locate the weapon – believed to be a fixed-blade knife – detectives contacted local businesses to see if a similar knife had been purchased recently.
“It’s highly unlikely, although not impossible, that a first-time offender is going to come prepared with a tactical knife and murder multiple people, even in the face of resistance, and that this is going to be their first encounter with violent crime or the use of a knife,” Miller said.
One aspect of a homicide investigation is to “keep the media happy,” according to Giacalone.
“Today in the social media, true crime, community-driven world in these cases, the demand for information is so great that sometimes police departments kind of fill in that blank air and say something just for the sake of saying something, and then realizing that it’s either not 100% true, or it’s misleading,” he said.
It’s critical for police to protect their information at “all costs” and they always know more than what they release to the public. Otherwise, it could cause the suspect to go on the run, he says.

Miller said it’s “not fair” to investigators for the public or media to criticize them for not releasing enough information about the case.
But, ultimately, the department has a moral obligation to share some information with families who are suffering in uncertainty, Miller says, but they must be judicious about what they share.
“If you tell them we have a suspect and we’re close to an arrest but that doesn’t come together, then everybody is disappointed or thinks you messed it up or worse, goes out and figures out who the suspect is and tries to take action on their own,” he said.
Investigators rely on the trove of physical and scientific evidence, information from the public and national data on violent crimes to cultivate possible leads, Miller says.
Public tips, photos and videos of the night the students died, including more than 260 digital media submissions people have submitted through an FBI form, are being analyzed, police say. Authorities have processed more than 1,000 tips and conducted at least 150 interviews to advance the case.
“Any one of those tips can be the missing link,” Miller said. “It can either be the connective tissue to a lead you already had but were missing a piece, or it can become the brand new lead that solves the case.”
Every tip must be recorded in a searchable database so investigators can go back to them as they learn new details over the course of the investigation, Miller says. While 95% to 99% of public tips may provide no value, one or several might crack the entire case, he adds.
“Police in this case could be nowhere tonight, having washed out another suspect, and tomorrow morning they could be making an arrest,” Miller said of the Idaho investigation. “Or, for the suspect they’re working on today, it might take them another month from now to put together enough evidence to have probable cause. That’s just something they won’t be able to reveal until it happens.”
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CNN
—
In 2015, the same year Apple introduced its smartwatch, a Kickstarter campaign launched for a very different kind of wearable device: a wellness-tracking ring called the Oura.
Seven years later, the Apple Watch is the most popular wearable device while other similar products from Google and Samsung also dominate the wearables market. But something notable is underway: products like Oura, which look and sometimes function markedly different from more mainstream wearables, are gaining renewed traction.
The Oura ring ($399) experienced a spike in sales during the pandemic, and has seen continued momentum this holiday season, CEO Tom Hale told CNN Business. It provides sleep tracking data without needing to wear a smartwatch to bed and can detect subtle changes in body temperature. It also has no screen. Earlier this year, the company announced it had received a $2.55 billion valuation and has since rolled out partnerships with Gucci, Strava and other brands.
The ring is among a small but increasingly buzzy group of alternative wearable devices that people are gravitating toward right now, including a fitness band tracker with no screen and headphones that don’t need to be put in the ear. Some of the demand stems from shifts during the pandemic, as consumer interest in health monitoring surged. People turned to activity trackers, smartwatches and other devices to keep tabs on their steps, vital statistics and more. Many were also willing to experiment with different form factors, as long as they provided accurate data and were still comfortable – a trend that continues today.
“The funny thing is that most of these devices have been around for a while but have slowly built a name for themselves in recent quarters,” said Ramon Llamas, a research director at IDC Research. “But it takes time for word of mouth to spread.”
The devices may also tap into a desire to get the benefits of wearable trackers without necessarily having a screen or device on their body at all times.
Take the WHOOP band, a health tracker without a screen that first came out in 2015. It has a very specific focus on workout recovery, resting time, training and coaching. Founder and CEO Will Ahmed told CNN Business this year’s Cyber Monday was its largest sales day ever.
“It wasn’t that long ago that people only wore a health monitor if something was wrong. Now, we’re seeing people take a much more proactive approach to their health,” he said. “This trend has continued even as the pandemic subsides.”
Like Oura, the WHOOP is a subscription-based device and targeting a more niche audience. It’s pricy, too: $480, including a two-year subscription plan.
“The challenge is that most of these devices are vying for single-digit market share behind the market leaders, [such as Apple and Samsung],” Llamas said. “That’s why it is key to have a well-differentiated segment that you can serve almost exclusively. Companies like WHOOP have been successful because they focus on athlete rest and recovery so well, and those are key factors for many athletes today.”
Ahmed said the product is evolving to support this growing interest in health by adding new features related to pregnancy, stress and deeper biometric monitoring. In August, WHOOP announced it raised $200 million in a funding round led by SoftBank Vision Fund 2, giving the company a valuation of $3.6 billion.
Health tracking devices continue to take on new shapes and sizes, too, including some that don’t require being worn at all. In September, Amazon showed off a non-wearable sleep tracking monitor, Halo Rise, which sits on a nightstand and tracks breathing patterns while the user is asleep. Meanwhile, some companies like Withings let users slip sensors under the mattress to collect sleep data.
There’s also a shift in demand for what is arguably one of the original wearables: headphones.
Bone conduction headphones, which like the Oura have been around for years, are also “having a moment,” according to Steve Konig, head of the research department at the Consumer Electronics Association. Rather than sitting inside or on top of the ear canal, bone conduction headphones rest in front of the ear, leaving it uncovered. They transmit audio along the user’s bones and jaw to the ears instead of directly into the ear canal. The headphones also feature a soft band that runs behind the upper portion of the neck to secure it in place and minimize sound distortions.
At the same time, the exposed ear allows users to pick up on sounds and the environment around them, crucial for safety when doing activities such as riding a bike or jogging. Unlike earbuds, there’s also less concern about it popping out of your ears.
Shokz ($125) pioneered bone conduction headphones, but the market has since expanded with other brands offering similar designs. Open earbuds – such as ones designed by Sony and Bose – feature a similar design that leaves the ear canals completely open so that the user can hear the outer noise. But some audiophiles say the sound quality on bone conduction headphones and open earbuds is less than stellar.
“In the past 10 years, audio innovation in general has soared because of the introduction of new features, such as noise cancellation technology, built-in wireless capabilities and more,” Konig said. “Now, people own multiple pairs of personal listening products for different locations and use cases; some leave them at the office, others prefer bigger, beefier ones on airplanes. They also make a great holiday gift because, in the grand scheme of gift giving, they’re fairly reasonable to buy.”
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Hong Kong
CNN Business
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The central Chinese city of Zhengzhou, home to the world’s largest iPhone factory, has lifted a five-day Covid lockdown, in a move that analysts have called a much-needed relief for Apple and its main supplier Foxconn.
Zhengzhou is the site of “iPhone City,” a sprawling manufacturing campus owned by Taiwanese contract manufacturer Foxconn that normally houses about 200,000 workers churning out products for Apple
(AAPL), including the iPhone 14 Pro and 14 Pro Max. Last Friday, the city locked down its urban districts for five days as Covid-19 cases surged there.
Foxconn’s massive facility is not part of the city’s urban districts. However, analysts say the lockdown would have been detrimental to efforts to restore lost production at the campus, the site of a violent workers’ revolt last week.
“This is some good news in a dark storm for Cupertino,” Daniel Ives, managing director of equity research at Wedbush Securities, told CNN Business, referring to the California city where Apple is based. “There is a lot of heavy lifting ahead for Apple to ramp back up the factories.”
Ives estimates the ongoing supply disruptions at Foxconn’s Zhengzhou campus were costing Apple roughly $1 billion a week in lost iPhone sales. The troubles started in October when workers left the campus in Zhengzhou, the capital of the central province of Henan, due to Covid-related fears. Short on staff, bonuses were offered to workers to return.
But protests broke out last week when the newly hired staff said management had reneged on their promises. The workers, who clashed with security officers, were eventually offered cash to quit and leave.
Analysts said Foxconn’s production woes will speed up the pace of supply chain diversification away from China to countries like India.
Ming-Chi Kuo, an analyst at TF International Securities, wrote on social media that he estimated iPhone shipments could be 20% lower than expected in the current October-to-December quarter. The average capacity utilization rate of the Zhengzhou plant was only about 20% in November, he said, and was expected to improve to 30% to 40% in December.
Total iPhone 14 Pro and 14 Pro Max shipments in the current quarter would be 15 million to 20 million units less than previously anticipated, according to Kuo. Due to the high price of the iPhone 14 Pro series, Apple’s overall iPhone revenue in the current holiday quarter could be 20% to 30% lower than investors’ expectations, he added.
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CNN
—
Same old basement, same old Formans but a brand new decade.
Netflix unveiled the first-look teaser for “That ’90s Show” on Tuesday, the sequel series to hit late ‘90s/early aughts sitcom “That ‘70s Show.”
The new series brings back alums Kurtwood Smith and Debra Jo Rupp as Red and Kitty, respectively, this time as grandparents with a new crop of youngsters inhabiting the basement of their Point Place, Wisconsin home.
With Red as curmudgeonly as ever – and Kitty just as sweet – the basic structure of “That ’70s Show” remains largely intact, even if stars Ashton Kutcher, Mila Kunis, Laura Prepon, Topher Grace and Wilmer Valderrama from the first series are only seen in one of the new show’s ten episodes.
Instead, “That ’90s Show” features Callie Haverda as granddaughter Leia Forman, along with other up-and-coming stars Ashley Aufderheide, Maxwell Donovan, Mace Coronel, Reyn Doi, Sam Morelos and Andrea Anders.
The teaser features the gallivanting kids being told not to dance by Red, before they zone out in a smoky haze (some things never change) and are later kicked out of the house – but not without getting delicious brownies from Kitty.
The new show was created by “‘70s Show” creators Bonnie and Terry Turner, this time with their daughter Lindsey Turner, along with showrunner/executive producer Gregg Mettler.
“That ’90s Show” will premiere on Netflix on January 19, 2023.
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When Colin McEvoy, a father of two from Bethlehem, Pennsylvania and a self-described film fanatic, wants to watch a Bollywood film or an obscure independent movie, he often turns to Netflix – but not its popular streaming service.
McEvoy, 39, said he’s been using Netflix’s DVD-by-mail service since 2001, just three years after it launched.
“I remember I was in high school when I first signed up for it, and the concept was so novel, I had to really convince my dad that it was a legit service and not some sort of Internet scam,” said McEvoy, who uses an old Xbox 360 to play his Netflix DVDs. “Now I have friends who’ve seen my red Netflix envelopes arrive in the mail, and either didn’t remember what they were or couldn’t believe that I still got the DVDs in the mail.”
Now, McEvoy is one of the DVD-by-mail holdouts mourning the service’s imminent demise. On Tuesday, Netflix announced it will send out its final red envelope on September 29, 2023. marking an end to 25 years of mailing DVDs to members. The company will continue to accept returns of customers’ remaining DVDs until October 27.
“I’ll be sad to see the service go,” McEvoy said.
Introduced in 1998 when Netflix first launched, the service promised an easier rental experience than having to drive to the nearest Blockbuster or Hollywood Video. The red envelopes, which have long been synonymous with Netflix itself, littered homes and dorm rooms across the country. But in 2007, Netflix began streaming content online, and gradually shifted the focus away from its original DVD business.
Today, the idea of receiving a DVD in the mail may sound almost as outdated as receiving a dial up CD, but some longtime customers told CNN they continued to find value in the DVD option, including for its selection, pricing and added perks.
Brandon Cordy, a 41-year-old graphic designer from Atlanta, said he stuck with DVDs because many digital rentals don’t come with special features or audio commentaries.
There are other factors, too. Michael Inouye, an analyst at ABI Research, said some consumers may still not have access to reliable or fast enough broadband connections, or simply prefer physical media to digital, much in the way that some audio enthusiasts still purchase and collect CDs and records. Other households may also own cars that still have DVD players inside.
For Netflix, however, the offering has made less sense in recent years. “Our goal has always been to provide the best service for our members, but as the DVD business continues to shrink, that’s going to become increasingly difficult,” co-CEO Ted Sarandos wrote in a blog post this week.
Shutting down its DVD business could help Netflix better focus resources as it expands into new markets such as gaming as well as live and interactive content. Its DVD business has also declined significantly in recent years. In 2021, Netflix’s non-streaming revenue – mostly attributable to DVDs – amounted to 0.6% of its revenue, or just over $182 million.
The cost to operate its DVD business may also be a factor, especially as Netflix rethinks expenses broadly amid heightened streaming competition and broader economic uncertainty. “Moving plastic discs around costs far more money than streaming digital bits,” said Eric Schmitt, senior director analyst at Gartner Research. “Removing and replacing damaged and lost inventory are also cost considerations.”
Even before Netflix announced the news this week, some longtime subscribers said they could see the writing on the wall.
“The inventory of available titles, while still vast, had been contracting some over the years with some movies that were once available no longer being so,” Cordy said. “Turnaround times to get a new movie or movies also started to take longer, so I knew it was only a matter of time. But I didn’t want it to end if I could help it.”
Other DVD subscribers are hoping there may still be a happy ending.
On Wednesday, Bill Rouhana, the CEO of Chicken Soup for the Soul Entertainment – which owns DVD rental service Redbox – told The Hollywood Reporter he hopes to purchase Netflix’s DVD business. “I’d like to buy it… I wish Netflix would sell me that business instead of shutting it down,” he said. Redbox remains popular despite the shift in streaming, but took a hit during the pandemic because of the lack of new movies and TV shows to fill the boxes.
A Netflix spokesperson told CNN it has no plans to sell the DVD business and declined to share how it plans to dispose of the discs. But Nick Maggio, a 43-year-old elementary school teacher from Valley Stream, New York, said he hopes the company will sell their individual titles library. “I know there are several titles I’d like to get my hands on,” he said.
For now, at least, some DVD subscribers plan to focus on watching as many DVDs as they can before the service goes away.
McEvoy, who also subscribes to Disney+, Hulu, the Criterion channel and Mubi, said he’s determined to finish seeing every film listed in the book “1001 Movies You Must See Before You Die” with the help of Netflix.
“I absolutely would not have been able to find all of those movies if not for the Netflix DVD service,” he said. “I only have four movies left to go.”
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CNN
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Geoffrey Hinton, also known as the “Godfather of AI,” decided he had to “blow the whistle” on the technology he helped develop after worrying about how smart it was becoming, he told CNN on Tuesday.
“I’m just a scientist who suddenly realized that these things are getting smarter than us,” Hinton told CNN’s Jake Tapper in an interview on Tuesday. “I want to sort of blow the whistle and say we should worry seriously about how we stop these things getting control over us.”
Hinton’s pioneering work on neural networks shaped artificial intelligence systems powering many of today’s products. On Monday, he made headlines for leaving his role at Google, where he had worked for a decade, in order to speak openly about his growing concerns around the technology.
In an interview Monday with the New York Times, which was first to report his move, Hinton said he was concerned about AI’s potential to eliminate jobs and create a world where many will “not be able to know what is true anymore.” He also pointed to the stunning pace of advancement, far beyond what he and others had anticipated.
“If it gets to be much smarter than us, it will be very good at manipulation because it will have learned that from us, and there are very few examples of a more intelligent thing being controlled by a less intelligent thing,” Hinton told Tapper on Tuesday.
“It knows how to program so it’ll figure out ways of getting around restrictions we put on it. It’ll figure out ways of manipulating people to do what it wants.”
Hinton is not the only tech leader to speak out with concerns over AI. A number of members of the community signed a letter in March calling for artificial intelligence labs to stop the training of the most powerful AI systems for at least six months, citing “profound risks to society and humanity.”
The letter, published by the Future of Life Institute, a nonprofit backed by Elon Musk, came just two weeks after OpenAI announced GPT-4, an even more powerful version of the technology that powers the viral chatbot ChatGPT. In early tests and a company demo, GPT-4 was used to draft lawsuits, pass standardized exams and build a working website from a hand-drawn sketch.
Apple co-founder Steve Wozniak, who was one of the signatories on the letter, appeared on “CNN This Morning” on Tuesday, echoing concerns about its potential to spread misinformation.
“Tricking is going to be a lot easier for those who want to trick you,” Wozniak told CNN. “We’re not really making any changes in that regard – we’re just assuming that the laws we have will take care of it.”
Wozniak also said “some type” of regulation is probably needed.
Hinton, for his part, told CNN he did not sign the petition. “I don’t think we can stop the progress,” he said. “I didn’t sign the petition saying we should stop working on AI because if people in America stop, people in China wouldn’t.”
But he confessed to not having a clear answer for what to do instead.
“It’s not clear to me that we can solve this problem,” Hinton told Tapper. “I believe we should put a big effort into thinking about ways to solve the problem. I don’t have a solution at present.”
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