Tech

Netflix's plan to jump into video games puzzles Wall Street – BNN

Published

3 years ago

July 15, 2021

Netflix Inc.’s foray into gaming is raising more eyebrows than excitement among analysts.

Though there’s long been speculation that Netflix might move into video games, Wednesday’s news that it had hired an executive to lead the effort — and would start adding titles to its streaming platform in the next year — came as a surprise to many. The Los Gatos, California-based company doesn’t have the infrastructure or the expertise to create or support top-tier games, analysts said. And that capability won’t be easy to build.

“They don’t have a game catalog — they haven’t cultivated a base of gamers in their audience,” said Lewis Ward, research director for gaming at IDC. “And they don’t have an internal studio or infrastructure to handle a service.”

Netflix shares initially jumped on the news, which was first reported by Bloomberg. But by Thursday afternoon, they had sunk as much as 1.8 per cent in New York trading.

By experimenting with games, Netflix hopes to give customers one more reason to sign up for its service — and to hang on instead of leaving. It’s expected to start slow with the effort, helping minimize risk. The company has yet to settle on its game-development strategy and may begin with just a few titles, Bloomberg reported Wednesday.

Netflix doesn’t currently plan to charge for the games, according to a person familiar with the matter. The idea is to feature the option alongside its current fare: movies, TV shows and documentaries that are beamed to its roughly 204 million members in more than 190 countries.

Still, it’s a daunting task. Wedbush Securities Inc. analyst Michael Pachter, famously bearish on Netflix, was especially critical of the idea.

The executive tasked with leading the effort, Mike Verdu, has changed jobs four times in the past 10 years, before moving to Netflix, Pachter noted. And Netflix’s top management isn’t educated about the video-game business, he said.

“They are not going to succeed,” Pachter said in an interview. “They are going to spend a few hundred million dollars and quietly fold this with a tail between their legs.”

Of course, Pachter has been wrong about Netflix before. He’s recommended selling the stock for the past decade, even as Netflix has come to dominate the streaming industry — sending its shares soaring along the way.

But he has plenty of company in being skeptical about the gaming move.

One problem is Netflix lacks the infrastructure needed to support so-called AAA games — the industry’s term for top-tier titles with the best graphics. Such games require low latency, IDC’s Ward said. Netflix could partner with a cloud provider such as Amazon.com Inc. or Google, both of which have competing forays into games, but that would be hugely expensive, he said.

Mobile Games

Netflix may be able to more effectively compete in mobile games, according to Bloomberg Intelligence analyst Matthew Kanterman. After all, many Netflix subscribers, particularly in Asia, are already using the service on their mobile phones. Netflix also can capitalize on its intellectual property — say, “Stranger Things” — to offer games that people recognize.

In that scenario, “Netflix could emerge as a force to contend with,” Kanterman said in a note.

But most people who want to play mobile games can already find a greater variety of them in the Apple App Store or Google Play, Pachter said.

Bernstein analysts Todd Juenger and Gini Zhang said in a note that they were “tepid” about Netflix getting into gaming, partly because it would mean a lesser focus on the core business. They worry about creating a distraction.

“It’s hard not to imagine that if Netflix were to launch its own video games, the majority of the company’s energy would be focused on the success of that new, different, exciting thing (even among employees who aren’t involved in it),” according to the note. It’s also unclear how the company can capitalize on the video-game content without raising prices — and potentially turning away some users unwilling to pay extra, they said.

Interactive Shows

What would make more sense is for Netflix to develop additional interactive TV shows, which fall somewhere in between traditional TV and video games, Ward said. In such shows — already available on Netflix and platforms like Facebook Inc. — people can vote for the direction they want the story to go.

“Movie companies that tried to make video games have generally failed, and video-game companies that tried to make movies have generally failed,” Ward said. Still, “there’s a new middle ground that could emerge in the next 10 years.”

That could change the equation, he said. “My gut feeling tells me these guys are on to something.”

Netflix, which has long talked about Fortnite as a competitor, perhaps thinks it can avoid the fate of other gaming efforts that failed — thanks to its legions of loyal users.

“To its credit, Netflix has always erred on the side of choosing the risk of moving too fast and bold, rather than the risk of moving too slow and safe,” according to the Bernstein analysts. It’s possible that “in hindsight, 10 years from now, this idea will look like a no-brainer.”

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Tech

Ottawa orders TikTok’s Canadian arm to be dissolved

Published

3 days ago

November 6, 2024

Anne Joseph

The federal government is ordering the dissolution of TikTok’s Canadian business after a national security review of the Chinese company behind the social media platform, but stopped short of ordering people to stay off the app.

Industry Minister François-Philippe Champagne announced the government’s “wind up” demand Wednesday, saying it is meant to address “risks” related to ByteDance Ltd.’s establishment of TikTok Technology Canada Inc.

“The decision was based on the information and evidence collected over the course of the review and on the advice of Canada’s security and intelligence community and other government partners,” he said in a statement.

The announcement added that the government is not blocking Canadians’ access to the TikTok application or their ability to create content.

However, it urged people to “adopt good cybersecurity practices and assess the possible risks of using social media platforms and applications, including how their information is likely to be protected, managed, used and shared by foreign actors, as well as to be aware of which country’s laws apply.”

Champagne’s office did not immediately respond to a request for comment seeking details about what evidence led to the government’s dissolution demand, how long ByteDance has to comply and why the app is not being banned.

A TikTok spokesperson said in a statement that the shutdown of its Canadian offices will mean the loss of hundreds of well-paying local jobs.

“We will challenge this order in court,” the spokesperson said.

“The TikTok platform will remain available for creators to find an audience, explore new interests and for businesses to thrive.”

The federal Liberals ordered a national security review of TikTok in September 2023, but it was not public knowledge until The Canadian Press reported in March that it was investigating the company.

At the time, it said the review was based on the expansion of a business, which it said constituted the establishment of a new Canadian entity. It declined to provide any further details about what expansion it was reviewing.

A government database showed a notification of new business from TikTok in June 2023. It said Network Sense Ventures Ltd. in Toronto and Vancouver would engage in “marketing, advertising, and content/creator development activities in relation to the use of the TikTok app in Canada.”

Even before the review, ByteDance and TikTok were lightning rod for privacy and safety concerns because Chinese national security laws compel organizations in the country to assist with intelligence gathering.

Such concerns led the U.S. House of Representatives to pass a bill in March designed to ban TikTok unless its China-based owner sells its stake in the business.

Champagne’s office has maintained Canada’s review was not related to the U.S. bill, which has yet to pass.

Canada’s review was carried out through the Investment Canada Act, which allows the government to investigate any foreign investment with potential to might harm national security.

While cabinet can make investors sell parts of the business or shares, Champagne has said the act doesn’t allow him to disclose details of the review.

Wednesday’s dissolution order was made in accordance with the act.

The federal government banned TikTok from its mobile devices in February 2023 following the launch of an investigation into the company by federal and provincial privacy commissioners.

— With files from Anja Karadeglija in Ottawa

This report by The Canadian Press was first published Nov. 6, 2024.

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Health

Here is how to prepare your online accounts for when you die

Published

2 weeks ago

October 24, 2024

Anne Joseph

LONDON (AP) — Most people have accumulated a pile of data — selfies, emails, videos and more — on their social media and digital accounts over their lifetimes. What happens to it when we die?

It’s wise to draft a will spelling out who inherits your physical assets after you’re gone, but don’t forget to take care of your digital estate too. Friends and family might treasure files and posts you’ve left behind, but they could get lost in digital purgatory after you pass away unless you take some simple steps.

Here’s how you can prepare your digital life for your survivors:

Apple

The iPhone maker lets you nominate a “ legacy contact ” who can access your Apple account’s data after you die. The company says it’s a secure way to give trusted people access to photos, files and messages. To set it up you’ll need an Apple device with a fairly recent operating system — iPhones and iPads need iOS or iPadOS 15.2 and MacBooks needs macOS Monterey 12.1.

For iPhones, go to settings, tap Sign-in & Security and then Legacy Contact. You can name one or more people, and they don’t need an Apple ID or device.

You’ll have to share an access key with your contact. It can be a digital version sent electronically, or you can print a copy or save it as a screenshot or PDF.

Take note that there are some types of files you won’t be able to pass on — including digital rights-protected music, movies and passwords stored in Apple’s password manager. Legacy contacts can only access a deceased user’s account for three years before Apple deletes the account.

Google

Google takes a different approach with its Inactive Account Manager, which allows you to share your data with someone if it notices that you’ve stopped using your account.

When setting it up, you need to decide how long Google should wait — from three to 18 months — before considering your account inactive. Once that time is up, Google can notify up to 10 people.

You can write a message informing them you’ve stopped using the account, and, optionally, include a link to download your data. You can choose what types of data they can access — including emails, photos, calendar entries and YouTube videos.

There’s also an option to automatically delete your account after three months of inactivity, so your contacts will have to download any data before that deadline.

Facebook and Instagram

Some social media platforms can preserve accounts for people who have died so that friends and family can honor their memories.

When users of Facebook or Instagram die, parent company Meta says it can memorialize the account if it gets a “valid request” from a friend or family member. Requests can be submitted through an online form.

The social media company strongly recommends Facebook users add a legacy contact to look after their memorial accounts. Legacy contacts can do things like respond to new friend requests and update pinned posts, but they can’t read private messages or remove or alter previous posts. You can only choose one person, who also has to have a Facebook account.

You can also ask Facebook or Instagram to delete a deceased user’s account if you’re a close family member or an executor. You’ll need to send in documents like a death certificate.

TikTok

The video-sharing platform says that if a user has died, people can submit a request to memorialize the account through the settings menu. Go to the Report a Problem section, then Account and profile, then Manage account, where you can report a deceased user.

Once an account has been memorialized, it will be labeled “Remembering.” No one will be able to log into the account, which prevents anyone from editing the profile or using the account to post new content or send messages.

It’s not possible to nominate a legacy contact on Elon Musk’s social media site. But family members or an authorized person can submit a request to deactivate a deceased user’s account.

Passwords

Besides the major online services, you’ll probably have dozens if not hundreds of other digital accounts that your survivors might need to access. You could just write all your login credentials down in a notebook and put it somewhere safe. But making a physical copy presents its own vulnerabilities. What if you lose track of it? What if someone finds it?

Instead, consider a password manager that has an emergency access feature. Password managers are digital vaults that you can use to store all your credentials. Some, like Keeper,Bitwarden and NordPass, allow users to nominate one or more trusted contacts who can access their keys in case of an emergency such as a death.

But there are a few catches: Those contacts also need to use the same password manager and you might have to pay for the service.

___

Is there a tech challenge you need help figuring out? Write to us at onetechtip@ap.org with your questions.

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Tech

Google’s partnership with AI startup Anthropic faces a UK competition investigation

Published

2 weeks ago

October 24, 2024

Anne Joseph

LONDON (AP) — Britain’s competition watchdog said Thursday it’s opening a formal investigation into Google’s partnership with artificial intelligence startup Anthropic.

The Competition and Markets Authority said it has “sufficient information” to launch an initial probe after it sought input earlier this year on whether the deal would stifle competition.

The CMA has until Dec. 19 to decide whether to approve the deal or escalate its investigation.

“Google is committed to building the most open and innovative AI ecosystem in the world,” the company said. “Anthropic is free to use multiple cloud providers and does, and we don’t demand exclusive tech rights.”

San Francisco-based Anthropic was founded in 2021 by siblings Dario and Daniela Amodei, who previously worked at ChatGPT maker OpenAI. The company has focused on increasing the safety and reliability of AI models. Google reportedly agreed last year to make a multibillion-dollar investment in Anthropic, which has a popular chatbot named Claude.

Anthropic said it’s cooperating with the regulator and will provide “the complete picture about Google’s investment and our commercial collaboration.”

“We are an independent company and none of our strategic partnerships or investor relationships diminish the independence of our corporate governance or our freedom to partner with others,” it said in a statement.

The U.K. regulator has been scrutinizing a raft of AI deals as investment money floods into the industry to capitalize on the artificial intelligence boom. Last month it cleared Anthropic’s $4 billion deal with Amazon and it has also signed off on Microsoft’s deals with two other AI startups, Inflection and Mistral.

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