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Netflix reportedly plans to cut spending by $300 million this year

Netflix is planning to cut its spending by $300 million this year, according to a new report from The Wall Street Journal. The report indicates that part of the reason the streaming giant is looking to cut costs is because it delayed its plans to crack down on password sharing in the U.S. and elsewhere from the first quarter of the year to the second quarter, which means that revenue from the move is now expected to come in toward the second half of the year.
The company urged staff earlier this month to be sensible with their spending, including in relation to hiring, but noted that there would not be a hiring freeze or additional layoffs.
A Netflix spokesperson declined to comment.
It’s worth noting that although Netflix plans to cut costs by $300 million this year, this number represents a small fraction of the company’s overall expenses. For instance, Netflix’s operating expenses last year were about $26 billion.
The streaming giant beat estimates for the first quarter of the year but reported a lighter-than-expected forecast last month. Netflix raised its estimate for the amount of free cash flow it aims to generate in 2023 to at least $3.5 billion, up from $3 billion.
Netflix has been exploring new ways to generate revenue. The company launched its crackdown on password sharing in Canada, New Zealand, Portugal and Spain earlier this year. In these countries, Netflix requires paying users to set a primary location for their account. If someone they don’t live with uses their account, Netflix alerts them to “buy an extra member.” Netflix allows up to two extra members per account for a fee, which varies from country to country.
In addition, the company launched a new ad-supported plan called “Basic with Ads” last November. The tier costs $6.99 per month, which is $13 less than Netflix’s Premium plan, nearly $9 less than the Standard plan and $3 less than the Basic plan. With this plan, Netflix is competing with other major streaming services that offer ad-supported options, including Disney+, Hulu, HBO Max, Paramount+ and Peacock.
In an effort to lower costs, Netflix conducted a series of job cuts last year. In May 2022, the company laid off approximately 150 staffers. A month after that, the company laid off 300 more people, which represented about 3% of its workforce at the time. Netflix then laid off another 30 employees in September who were part of its animation department.
Netflix’s password sharing crackdown is expected to hit the U.S. on or before June 30.

Netflix will crack down on password sharing this summer

Netflix reportedly plans to cut spending by $300 million this year by Aisha Malik originally published on TechCrunch
Netflix reportedly plans to cut spending by $300 million this year

Google gets antitrust attention in Spain over news licensing

Google can add another antitrust investigation to its stack. This one has been opened by Spain’s competition authority, the CNMC, which said today it’s concerned about possible anti-competitive practices related to the licensing of news content by local publishers.
In a press release it said it is investigating “a series of practices that could involve an abuse of Google’s dominant position vis-à-vis the publishers of press publications and news agencies established in Spain” [NB: We’ve translated the text from Spanish with machine translation].
“In particular, these practices would consist the possible imposition of unfair commercial conditions on the publishers of press publications and news agencies established in Spain for the exploitation of their content protected by intellectual property rights,” it also wrote. “On the other hand, the investigated behaviors would also include practices that would constitute acts of unfair competition that could distort free competition and affect the public interest.”
The competition authority said it is acting following a complaint by the Spanish Center for Reprographic Rights (aka, Centro Español de Derechos Reprográficos or CEDRO).
We’ve reached out to all concerned.
News licensing is an area where Google has faced severe sanction in Europe already. Back in July 2021, France’s antitrust authority fined the tech giant over half a billion dollars for breaching an order to negotiate copyright fees with news publishers for reuse of their content. That followed the EU a copyright reform, agreed back in 2019, that extended IP to snippets of news content — requiring platforms like Google to negotiate with publishers.

Google fined $592M in France for breaching antitrust order to negotiate copyright fees for news snippets

Spain transposed the EU reform into its national law in November 2021, paving the way for a return of Google News to the country.
Google’s news aggregation service had closed in Spain in 2014 after the country passed a law that aimed to force Google to pay a collective licensing fee for the news snippets. The EU copyright reform replaced the prior fee regime with a requirement to negotiate with individual publishers — and Google News duly reopened in Spain in June 2022.
At the same time, the company also announced it would launch its News Showcase product in the country. Google’s News Showcase product was spun up by the tech giant in fall 2020 as lawmakers in Europe and elsewhere were zeroing in on making it pay for news content reuse — creating a licensing vehicle it could use in the looming, inexorable negotiations with publishers.
It’s not immediately clear whether the Spanish probe will focus on Google’s News Showcase licensing arrangements or on copyright fees talks — or both.
While it remains to be seen what Spain’s investigation of Google’s news licensing practices will finally determine — the authority has up to 18 months to conduct the probe — it said its preliminary information-gathering phase found “indications of possible infringement”.
Germany’s antitrust authority, meanwhile, has already pushed back over Mountain View’s practices in this area after starting to scrutinize its news-related fine print in summer 2021. The regulatory attention on Google from the German FCO — which is currently armed with beefier powers to tackle Big Tech than other European countries (thanks to a 2021 update to competition law squarely targeted at digital giants) — has led to Google offering a series of concessions over how it operates News Showcase locally, including an offer not to include the showcasing of licensed content in general search results (which is one trigger for antitrust concerns).
The News Showcase product provides the prospect of raised visibility for participating publishers, since the offer is for Google to feature participants’ content to users across a number of touchpoints. However that could create a disadvantage for publishers who don’t pay Google (i.e. if it leads to their content being less visible in Google’s general Internet search, given its continued dominance of the Internet search and content discovery market).
Google has also sought to co-mingle negotiations with publishers over News Showcase with what are, under the pan-EU reform, legally required talks over copyright fees — something France’s watchdog slapped down in its hefty enforcement in mid 2021.

Google offers not to put News Showcase into search results in Germany as antitrust probe rolls on

Google users not given sufficient choice over its data processing, says German antitrust watchdog

Google gets antitrust attention in Spain over news licensing by Natasha Lomas originally published on TechCrunch
Google gets antitrust attention in Spain over news licensing

Kids and teens now spend more time watching TikTok than YouTube, new data shows

Kids and teens are now spending more time watching videos on TikTok than on YouTube.
In fact, that’s been the case since June 2020 — the month when TikTok began to outrank YouTube in terms of the average minutes per day people ages 4 through 18 spent accessing these two competitive video platforms. That month, TikTok overtook YouTube for the first time, as this younger demographic began averaging 82 minutes per day on TikTok versus an average of 75 minutes per day on YouTube.
In the years since, TikTok has continued to dominate with younger users. By the end of 2021, kids and teens were watching an average of 91 minutes of TikTok per day compared with just 56 minutes per day spent watching YouTube, on a global basis.
This new data is based on kids’ and teens’ use of TikTok and YouTube across platforms, which was compiled for TechCrunch by parental control software maker Qustodio using an analysis of 400,000 families who have accounts with its service for parental monitoring. The data represents their real-world usage of apps and websites, not an estimate.
And to be clear, these figures are averages. That means kids aren’t necessarily sitting down to watch an hour and a half of TikTok and an hour of YouTube every day. Instead, the data shows how viewing trends have changed over time, where some days kids will watch more online video than others, and will switch between their favorite apps.
However, the broader picture this data paints is one where the world’s largest video platform may be losing its grip on the next generation of web users — specifically, Gen Z and Gen Alpha. Gen Z is typically thought to include people born between the mid- to late-1990s and the 2010s. Meanwhile, Gen Alpha — a generation whose childhood was put on pause by Covid, then driven online — includes those born after the early to mid-2010s.
In a prior annual report, Qustodio had analyzed kids’ app usage and found that TikTok was nearing YouTube in terms of average time spent. However, that report examined the data in a somewhat clunky fashion. It had included early 2020 app usage in a report largely focused on 2019 trends — a decision the firm had made at the time in order to highlight the increased connectivity taking place at the beginning of the pandemic. The report also focused on a handful of top markets, rather than global trends.

Kids now spend nearly as much time watching TikTok as YouTube in US, UK and Spain

The new data, compiled upon TechCrunch’s request, has been cleaned up to provide a clearer picture of the year-over-year shift in video viewing trends among the web’s youngest users.
According to the firm’s findings, YouTube was still ahead in 2019 as kids and teens were spending an average of 48 minutes on the platform on a global basis, compared with 38 minutes on TikTok. But with the shift in usage that took place in June 2020, TikTok came out on top for 2020 as a whole, with an average of 75 minutes per day, compared with 64 minutes for YouTube.
This past year, the averages grew even further apart. In 2021, this younger demographic spent an average of 91 minutes per day on TikTok versus just 56 minutes on YouTube.
Image Credits: Qustodio data
Image Credits: Qustodio data
The firm also broke out metrics for leading countries like the U.S., the U.K. and Spain, which demonstrate an even more incredible shift on a regional basis, compared with the global trends. For example, U.S. kids and teens last year spent an average of 99 minutes per day on TikTok versus 61 minutes on YouTube. In the U.K., TikTok usage was up to a whopping 102 minutes per day, versus just 53 minutes on YouTube. These figures include both website and app usage, we should note.
YouTube, no doubt, is well aware of this shift in consumer behavior as are all other social app makers, including Meta and Snap. That’s why YouTube, Instagram, Facebook and Snapchat have all now copied TikTok’s short-form vertical video feed with their own products.
In YouTube’s case, that’s YouTube Shorts, a short video platform the company believes will prove to be a discovery engine that will drive users to its long-form product. The company recently touted that YouTube Shorts had topped 1.5 billion logged-in monthly users, and suggested that channels producing videos of different lengths were seeing gains in watch time. It didn’t, however, share any specific figures on that front.
YouTube’s first-party data, of course, takes into account a broader global audience — not just kids and teens. And it includes cross-platform usage on phones, tablets, the web, smart TVs, game consoles, connected devices and more.
But despite Shorts’ growing adoption per YouTube’s data, Qustodio’s research seems to indicate younger people have simply been opting for the short-form content provided by TikTok. At the same time, TikTok has been slowly pushing its user base to consume longer videos. This year, for instance, TikTok expanded the max video length to 10 minutes, up from its earlier expansion to 3 minutes. And while most TikTok videos are not multiple minutes long, the “optimal” video length for a TikTok video has been growing.
In 2020, TikTok told creators that 11 to 17 seconds was the sweet spot to find traction. In November 2021, it amended that to 21 to 34 seconds.
Over time, this could also help to drive up the average watch time on TikTok as well.
Qustodio’s larger annual report on digital trends indicates YouTube isn’t the only app to feel the impact of TikTok’s rise and the unique interests of Gens Z and Alpha. Young people use a different mix of apps than the generations before — like Roblox, for instance, which has been used by 56% of kids, or Snapchat, used by 82%. On average, they are totaling 4 hours of screen time per day, which includes educational apps.
The good news for YouTube, however, is that it’s still ahead of other video streaming services in terms of time spent.
Globally, kids spent 56 minutes per day on YouTube last year, ahead of Disney+ (47 min), Netflix (45 min), Amazon Prime (40 min), Hulu (38 min) and Twitch (20 min)
Kids and teens now spend more time watching TikTok than YouTube, new data shows

Under quarantine, media is actually social

The flood of status symbol content into Instagram Stories has run dry. No one is going out and doing anything cool right now, and if they are, they should be shamed for it. Beyond sharing video chat happy hour screenshots and quarantine dinner concoctions, our piece-by-piece biographies have ground to a halt. Oddly, what remains feels more social than social networks have in a long time.
With no source material, we’re doing it live. Coronavirus has absolved our desire to share the recent past. The drab days stuck inside blur into each other. The near future is so uncertain that there’s little impetus to make plans. Why schedule an event or get excited for a trip just to get your heartbroken if shelter-in-place orders are extended? We’re left firmly fixed in the present.
A house-arrest Houseparty, via StoicLeys
What is social media when there’s nothing to brag about? Many of us are discovering it’s a lot more fun. We had turned social media into a sport but spent the whole time staring at the scoreboard rather than embracing the joy of play.
But thankfully, there are no Like counts on Zoom .
Nothing permanent remains. That’s freed us from the external validation that too often rules our decision making. It’s stopped being about how this looks and started being about how this feels. Does it put me at peace, make me laugh, or abate the loneliness? Then do it. There’s no more FOMO because there’s nothing to miss by staying home to read, take a bath, or play board games. You do you.
Being social animals, what feels most natural is to connect. Not asynchronously through feeds of what we just did. But by coexisting concurrently. Professional enterprise technology for agenda-driven video calls has been subverted for meandering, motive-less togetherness. We’re doing what many of us spent our childhoods doing in basements and parking lots: just hanging out.
It’s time to Houseparty
For evidence, just look at group video chat app Houseparty, where teens aimlessly chill with everyone’s face on screen at once. In Italy, which has tragically been on lock down since COVID-19’s rapid spread in the country, Houseparty wasn’t even in the top 1500 apps a month ago. Today it’s the #1 social app, and the #2 app overall second only to Zoom which is topping the charts in tons of countries.
Houseparty topped all the charts on Monday, when Sensor Tower tells TechCrunch the app’s download rate was 323X higher than its average in February. As of yesterday it was #1 in Portugal (up 371X) and Spain (up 592X), as well as Peru, Argentina, Chile, Austria, Belgium, and the U.K. I despite being absent from the chart a week earlier. Apptopia tells me Houseparty saw 25 downloads in Spain on March 1st and 40,000 yesterday.
Houseparty rockets to #1 in many countries
A year ago Houseparty was nearly dead, languishing at #245 on the US charts before being acquired by Fortnite-maker Epic in June. Our sudden need for unmediated connection has brought Houseparty roaring back to life, even if Epic has neglected to update it since July.
“Houseparty was designed to connect people in the most human way possible when they are physically apart” the startup’s co-founder Ben Rubin tells me. “This is a time of isolation and uncertainty for us all. I’m grateful that we created a product that gives a sense of human connection to millions people during this critical moment.”
Around the world, apps for direct connection are spiking. Google Hangouts rules in Sweden. Discord for chat while gaming is #1 in France. Slack clone Microsoft Teams is king in the Netherlands. After binging through Netflix, all that’s left to entertain us is each other.
Undivided By Geography
If we’re all stuck at home, it doesn’t matter where that home is. We’ve been released from the confines of which friends are within a 20 minute drive or hour-long train. Just like students are saying they all go to Zoom University since every school’s classes moved online, we all now live in Zoom Town. All commutes have been reduced to how long it takes to generate an invite URL.
Nestled in San Francisco, even pals across the Bay in Berkeley felt far away before. But this week I had hour-long video calls with my favorite people who typically feel out of reach in Chicago and New York. I spent time with babies I hadn’t met in person. And I kept in closer touch with my parents on the other coast, which is more vital and urgent than ever before.
Playing board game Codenames over Zoom with friends in New York and North Carolina
Typically, our time is occupied by acquaintances of circumstance. The co-workers who share our office. The friends who happen to live in the neighborhood. But now we’re each building a virtual family completely of our choosing. The calculus has shifted from who is convenient or who invites us to the most exciting place, to who makes us feel most human.
Even celebrities are getting into it. Rather than pristine portraits and flashy music videos, they’re appearing raw, with crappy lighting, on Facebook and Instagram Live. John Legend played piano for 100,000 people while his wife Chrissy Teigen sat on screen in a towel looking salty like she’s heard “All Of Me” far too many times. That’s more authentic than anything you’ll get on TV.
And without the traditional norms of who we are and aren’t supposed to call, there’s an opportunity to contact those we cared about in a different moment of our lives. The old college roommate, the high school buddy, the mentor who gave you you’re shot. If we have the emotional capacity in these trying times, there’s good to be done. Who do you know who’s single, lives alone, or resides in a city without a dense support network?
Reforging those connections not only surfaces prized memories we may have forgotten, but could help keep someone sane. For those who relied on work and play for social interaction, shelter-in-place is essentially solitary confinement. There’s a looming mental health crisis if we don’t check in on the isolated.
The crisis language of memes
It can be hard to muster the energy to seize these connections, though. We’re all drenched in angst about the health impacts of the virus and financial impacts of the response. I certainly spent a few mornings sleeping in just to make the days feel shorter. When all small talk leads to rehashing our fears, sometimes you don’t have anything to say.
Luckily we don’t have to say anything to communicate. We can share memes instead.
My father-in-law sent me this. That’s when you know memes have become the universal language
The internet’s response to COVID-19 has been an international outpour of gallow’s humor. From group chats to Instagram joke accounts to Reddit threads to Facebook groups like quarter-million member “Zoom Memes For Quaranteens”, we’re joining up to weather the crisis.
A nervous laugh is better than no laugh at all. Memes allow us to convert our creeping dread and stir craziness into something borderline productive. We can assume an anonymous voice, resharing what some unspecified other made without the vulnerability of self-attribution. We can dive into the creation of memes ourselves, killing time under house arrest in hopes of generating smiles for our generation. And with the feeds and Stories emptied, consuming memes offers a new medium of solidarity. We’re all in this hellscape together so we may as well make fun of it.

The web’s mental immune system has kicked into gear amidst the outbreak. Rather than wallowing in captivity, we’ve developed digital antibodies that are evolving to fight the solitude. We’re spicing up video chats with board games like Codenames. One-off livestreams have turned into wholly online music festivals to bring the sounds of New Orleans or Berlin to the world. Trolls and pranksters are finding ways to get their lulz too, Zoombombing webinars. And after a half-decade of techlash, our industry’s leaders are launching peer-to-peer social safety nets and ways to help small businesses survive until we can be patrons in person again.
Rather than scrounging for experiences to share, we’re inventing them from scratch with the only thing we’re left with us in quarantine: ourselves. When the infection waves pass, I hope this swell of creativity and in-the-moment togetherness stays strong. The best part of the internet isn’t showing off, it’s showing up.

Under quarantine, media is actually social