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Netflix will show generative AI ads midway through streams in 2026

Netflix is joining its streaming rivals in testing the amount and types of advertisements its subscribers are willing to endure for lower prices.

Today, at its second annual upfront to advertisers, the streaming leader announced that it has created interactive mid-roll ads and pause ads that incorporate generative AI. Subscribers can expect to start seeing the new types of ads in 2026, Media Play News reported.

“[Netflix] members pay as much attention to midroll ads as they do to the shows and movies themselves,” Amy Reinhard, president of advertising at Netflix, said, according to the publication.

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VPN owner shows buyer’s remorse; claims was unaware of lifetime subscriptions

The CEO of the company that purchased VPNSecure in 2023 and claimed to not know that the VPN service provider had previously sold lifetime subscriptions has some regrets.

Earlier this week, Ars Technica reported on VPNSecure canceling thousands of lifetime subscriptions, starting in March. In an email to customers, VPNSecure said that it couldn't afford to maintain the subscriptions and that the current owners, InfiniteQuant Ltd, weren't told about the subscriptions when they bought VPNSecure. The sudden deactivation of accounts resulted in customer backlash online, including, as of this writing, 24 pages of one-star reviews on Trustpilot.

“… maybe, honestly, we should have just walked away from this 'opportunity,’” Romain Brabant, the CEO of InfiniteQuant Ltd, told Ars Technica when asked if he would have handled things differently in hindsight.

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Max pivots back to HBO Max as WBD rethinks ability to compete with Netflix

Warner Bros. Discovery's (WBD) streaming service Max will be called HBO Max starting this summer, bringing back a name that WBD curiously ditched a couple of years ago.

In May 2020, the company then known as WarnerMedia Group launched its flagship streaming service, HBO Max. The successor to the HBO Now subscription-based streaming service that launched in 2014, and not to be confused with the now-defunct HBO Go (which was a video-on-demand streaming service accessible to those with subscriptions to the HBO cable channel), HBO Max offered “the entire HBO service,” per WarnerMedia’s announcement. HBO Max also combined content from other titles WarnerMedia owned, including titles from DC Comics and Cartoon Network. But the main draw continued to be the ability to stream HBO’s prestigious library via a Netflix-like streaming subscription.

When WarnerMedia acquired Discovery in 2022 and became WBD, it sought to combine the libraries of HBO Max and the Discovery+ streaming service. WBD landed on Max as the name for the combined app. The name seemed to suggest access to a maximum amount of streaming content with maximum appeal. However, it questionably distanced itself from the legacy of high-budget, award-winning TV shows and recent popular movies that the HBO brand had been building since 1972.

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VPN firm says it didn’t know customers had lifetime subscriptions, cancels them

The new owners of VPN provider VPNSecure have drawn ire after canceling lifetime subscriptions. The owners told customers that they didn’t know about the lifetime subscriptions when they bought VPNSecure, and they cannot honor the purchases.

In March, complaints started appearing online about lifetime subscriptions to VPNSecure no longer working.

The first public response Ars Technica found came on April 28, when lifetime subscription holders reported receiving an email from the VPN provider saying:

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Wearables firm’s endless free hardware upgrades were too good to be true

Fitness tracker company Whoop has upset some long-time customers by ending an upgrade system that promised free hardware upgrades to anyone who had a subscription with the company for at least six months.

Whoop makes fitness tracker bracelets that let users access things like sleep tracking, menstrual tracking, and electrocardiograms (ECGs) via a subscription companion app. Since the first Whoop wearable came out in 2015, the Boston-based company’s business has been built on subscriptions. Whoop has traditionally lured customers in by giving its hardware away for “free” to Whoop app subscribers. Further, customers who subscribed to the Whoop app for at least six months got access to free hardware upgrades.

“Instead of purchasing new hardware every time an updated model is produced, WHOOP members receive the next-generation device for free after having been a member for six months or more,” said a webpage on Whoop’s website that is no longer active but was accessible as recently as March 28, as reported by The Verge and confirmed via the Internet Archive’s Wayback Machine.

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Kids are short-circuiting their school-issued Chromebooks for TikTok clout

Schools across the US are warning parents about an Internet trend that has students purposefully trying to damage their school-issued Chromebooks so that they start smoking or catch fire.

Various school districts, including some in Colorado, New Jersey, North Carolina, and Washington, have sent letters to parents warning about the trend that’s largely taken off on TikTok.

Per reports from school districts and videos that Ars Technica has reviewed online, the so-called Chromebook Challenge includes students sticking things into Chromebook ports to short-circuit the system. Students are using various easily accessible items to do this, including writing utensils, paper clips, gum wrappers, and pushpins.

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Broadcom Sends Cease-and-Desist Letters to VMware Perpetual License Holders

VMware’s new owner is pushing legacy license-holders to buy costly software support subscriptions. Broadcom says it may audit VMware users to make sure they’re not skirting the rules.

VMware perpetual license holders receive cease-and-desist letters from Broadcom

Broadcom has been sending cease-and-desist letters to owners of VMware perpetual licenses with expired support contracts, Ars Technica has confirmed.

Following its November 2023 acquisition of VMware, Broadcom ended VMware perpetual license sales. Users with perpetual licenses can still use the software they bought, but they are unable to renew support services unless they had a pre-existing contract enabling them to do so. The controversial move aims to push VMware users to buy subscriptions to VMware product bundles, with associated costs that have increased by 300 percent or, in some cases, more.

Some customers have opted to continue using VMware unsupported, often as they research alternatives, such as VMware rivals or devirtualization.

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Software update makes HDR content “unwatchable” on Roku TVs

An update to Roku OS has resulted in colors looking washed out in HDR content viewed on Roku apps, like Disney+.

Complaints started surfacing on Roku's community forum a week ago. On May 1, a company representative posted that Roku was “investigating the Disney Plus HDR content that was washed out after the recent update.” However, based on user feedback, it seems that HDR on additional Roku apps, including Apple TV+ and Netflix, are also affected. Roku’s representative has been asking users to share their experiences so that Roku can dig deeper into the problem.

One user, going by "Squinky" on the forum, reported having a TCL TV with the problem and shared the following photo comparison:

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Backblaze responds to claims of “sham accounting,” customer backups at risk

Backblaze is dismissing allegations from a short seller that it engaged in “sham accounting” that could put the cloud storage and backup solution provider and its customers' backups in jeopardy.

On April 24, Morpheus Research posted a lengthy report accusing the San Mateo, California-based firm of practicing “sham accounting and brazen insider dumping.” The claims largely stem from a pair of lawsuits filed against Backblaze by former employees Huey Hall [PDF] and James Kisner [PDF] in October. Per LinkedIn profiles, Hall was Backblaze’s head of finance from March 2020 to February 2024, and Kisner was Backblaze’s VP of investor relations and financial planning from May 2021 to November 2023.

As Morpheus wrote, the lawsuits accuse Backblaze’s founders of participating in “an aggressive trading plan to sell 10,000 shares a day, along with other potential sales from early employee holders, against ‘all external capital markets advice.’” The plan allegedly started in April 2022, after the IPO lockup period expired and despite advisor warnings, including one from a capital markets consultant that such a trading plan likely breached Backblaze’s fiduciary duties.

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Looming tariffs are making it extra hard to be a tech geek

If I knew how much I’d end up loving my Logitech mice, I would’ve taken better care of them from the start. The MX Master 3S and Lift are my favorite mice for productivity, but their rubber coating can get grimy quickly. My white MX Master 3S looks especially shameful atop my desk, so I’ve been considering purchasing a replacement for a while.

Overturning my plans, though, Logitech recently raised prices across 51 percent of its portfolio, as detailed by YouTube channel Cameron Doughterty Tech. The firm has raised prices by as much as 25 percent.

The MX Master 3S I just mentioned is now $120, which is $20 more than before. That 20 percent increase makes it even harder to justify a new mouse, which I already considered a luxury purchase.

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Roku tech, patents prove its potential for delivering “interruptive” ads

Roku, owner of one of the most popular connected TV operating systems in the country, walks a fine line when it comes to advertising. Roku's OS lives on low-priced smart TVs, streaming sticks, and projectors. To make up the losses from cheaply priced hardware, Roku is dependent on selling advertisements throughout its OS, including screensavers and its home screen.

That business model has pushed Roku to experiment with new ways of showing ads that test users’ tolerance. The company claims that it doesn't want ads on its platform to be considered intrusive, but there are reasons to be skeptical about Roku's pledge.

Non-“interruptive” ads

In an interview with The Verge this week, Jordan Rost, Roku’s head of ad marketing, emphasized that Roku tries to only deliver ads that don't interrupt viewers.

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Man buys racetrack, ends up launching the Netflix of grassroots motorsports

In 2019, Garrett Mitchell was already an Internet success. His YouTube channel, Cleetus McFarland, had over a million followers. If you perused the channel at that time, you would’ve found a range of grassroots motorsports videos with the type of vehicular shenanigans that earn truckloads of views. Some of those older videos include "BLEW BY A COP AT 120+mph! OOPS!," "THERE'S A T-REX ON THE TRACK!," and "Manual Transmission With Paddle Shifters!?!."

Those videos made Mitchell, aka Cleetus McFarland, a known personality among automotive enthusiasts. But the YouTuber wanted more financial independence beyond the Google platform and firms willing to sponsor his channel.

“… after my YouTube was growing and some of my antics [were] getting videos de-monetized, I realized I needed a playground,” Mitchell told Ars Technica in an email.

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LG’s Integrated TV Ad Tech Analyzes Your Emotions

LG has licensed tech that claims to interpret TV users’ feelings and convictions. The company will use this data to more directly target the ads it’s showing to users of its smart TV platform.

HP agrees to $4M settlement over claims of “falsely advertising” PCs, keyboards

HP Inc. has agreed to pay a $4 million settlement to customers after being accused of “false advertising” of computers and peripherals on its website.

Earlier this month, Judge P. Casey Pitts for the US District Court of the San Jose Division of the Northern District of California granted preliminary approval [PDF] of a settlement agreement regarding a class-action complaint first filed against HP on October 13, 2021. The complaint accused HP's website of showing "misleading" original pricing for various computers, mice, and keyboards that was higher than how the products were recently and typically priced.

Per the settlement agreement [PDF], HP will contribute $4 million to a "non-reversionary common fund, which shall be used to pay the (i) Settlement Class members’ claims; (ii) court-approved Notice and Settlement Administration Costs; (iii) court-approved Settlement Class Representatives’ Service Award; and (iv) court-approved Settlement Class Counsel Attorneys’ Fees and Costs Award. All residual funds will be distributed pro rata to Settlement Class members who submitted valid claims and cashed checks.”

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LG TVs’ integrated ads get more personal with tech that analyzes viewer emotions

LG TVs will soon leverage an AI model built for showing advertisements that more closely align with viewers' personal beliefs and emotions. The company plans to incorporate a partner company’s AI tech into its TV software in order to interpret psychological factors impacting a viewer, such as personal interests, personality traits, and lifestyle choices. The aim is to show LG webOS users ads that will emotionally impact them.

The upcoming advertising approach comes via a multi-year licensing deal with Zenapse, a company describing itself as a software-as-a-service marketing platform that can drive advertiser sales “with AI-powered emotional intelligence.” LG will use Zenapse’s technology to divide webOS users into hyper-specific market segments that are supposed to be more informative to advertisers. LG Ad Solutions, LG’s advertising business, announced the partnership on Tuesday.

The technology will be used to inform ads shown on LG smart TVs’ homescreens, free ad-supported TV (FAST) channels, and elsewhere throughout webOS, per StreamTV Insider. LG will also use Zenapse's tech to “expand new software development and go-to-market products," it said. LG didn’t specify the duration of its licensing deal with Zenapse.

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Netflix plans to bring streaming into the $1 trillion club by 2030

Netflix plans to reach a market capitalization of $1 trillion by 2030, The Wall Street Journal (WSJ) reported this week, citing anonymous people who attended an “annual business review meeting” that Netflix held in March. Netflix's current market capitalization is nearly $400 billion.

Netflix is reportedly partnering its market cap goals with plans to double revenue within the same time frame. For 2024, Netflix reported $39 billion in revenue, meaning the company aims to raise its annual revenue to $78 billion in five years.

Compared to the prior five years, Netflix’s revenue grew 93.5 percent from 2019 ($20.16 billion) to 2024. However, that time period represented a different market, one where streaming subscriber counts were rising rapidly, and Netflix faced less competition than it does today. However, Netflix's 2030 revenue goals are also dependent on its advertising business, something Netflix lacked in 2019.

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Turbulent global economy could drive up prices for Netflix and rivals

Debate around how much taxes US-based streaming services should pay internationally, among other factors, could result in people paying more for subscriptions to services like Netflix and Disney+.

On April 10, the United Kingdom's Culture, Media and Sport (CMS) Committee reignited calls for a streaming tax on subscription revenue acquired through UK residents. The recommendation came alongside the committee's 120-page report [PDF] that makes numerous recommendations for how to support and grow Britain’s film and high-end television (HETV) industry.

For the US, the recommendation garnering the most attention is one calling for a 5 percent levy on UK subscriber revenue from streaming-video-on-demand services, such as Netflix. That’s because if streaming services face higher taxes in the UK, costs could be passed on to consumers, resulting in more streaming price hikes. The CMS committee wants money from the levy to support HETV production in the UK and wrote in its report:

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