Scott Ertz - Staff

In a move that reflects the evolving landscape of digital streaming services, Netflix announced the discontinuation of its ad-free Basic plan, a decision that marks the end of an era for the streaming giant's most economical, commercial-free offering. This change comes as part of a broader strategy to restructure its pricing tiers, compelling customers to embrace the ad-supported Standard Plan at $6.99 or opt for higher-priced, ad-free subscriptions. Now, customers who were on the Basic plan in the United States and France are being forced to choose another plan or lose their accounts.

What was the Basoc subscription tier?

The Basic plan, which was the most affordable way to enjoy Netflix's vast library without the interruption of advertisements, will no longer be available to subscribers in the United States. This shift is not entirely unexpected; the company had previously ceased offering this plan to new subscribers and had begun phasing it out in other regions, such as the UK and Canada.

Netflix's decision is a clear indication of the company's commitment to the ad-supported model, which has seen a significant uptake since its introduction. Over 45% of new sign-ups in areas where it's available have opted for this tier, suggesting a consumer willingness to trade ad-free convenience for a lower subscription cost.

The streaming service now offers a Standard plan with ads for $6.99 per month, which represents a middle ground for those who are price-sensitive but still prefer a degree of ad-free viewing. For subscribers who prioritize an uninterrupted viewing experience, the Standard ad-free plan is now priced at $15.49 per month, and the Premium tier, which includes 4K content, is set at $22.99 per month.

Why is this happening?

The rationale behind Netflix's restructuring can be attributed to a simple economic principle: maximizing revenue. By nudging customers towards plans that either generate ad revenue or come with a higher subscription fee, Netflix is adapting to the financial realities of the streaming market. This move is likely to drive many accounts to the ad-supported tier or see them pay a larger monthly fee, which, according to Netflix, could prove more financially advantageous in the long run.

Netflix's strategy also includes a focus on achieving a critical mass of ad subscribers by 2025, laying a strong foundation for further growth in the following years. This long-term vision underscores the importance of ad revenue in the company's future financial planning.

As the streaming industry grapples with increasing subscription costs and intense competition, Netflix's latest pricing strategy is a testament to the company's agility in responding to market dynamics. While some subscribers may lament the loss of the Basic plan, this development could herald a new chapter for Netflix, one that balances consumer affordability with the company's need for sustainable revenue growth.

What should you do now if you were on the Basic plan?

You are going to have to make a difficult choice going forward with Netflix. The most drastic option is to move away from Netflix entirely. For some users, the cost of the service is not worth it for the content that is available. Avram often talks about wanting to leave Netflix because of its lack of interesting content, and that might be the right choice for some.

If you want to stay with Netflix, you'll have to make a choice on a new plan. Either you'll have to head down to the ad-supported Standard Tier at $6.99 per month, or move up to one of the ad-free tiers starting at $15.49 per month.

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In a world increasingly reliant on digital infrastructure, the recent global system failure attributed to CrowdStrike's software update has raised significant concerns about cybersecurity and the robustness of global IT systems. The incident, which primarily affected Windows PCs, has not only highlighted the vulnerabilities inherent in widespread technology but also the interconnected nature of modern software platforms.

What happened with CrowdStrike?

CrowdStrike, a leading cybersecurity firm, experienced a major disruption following a defective software update to its Falcon Sensor product. This defect led to critical boot failures, commonly referred to as the "blue screen of death," across numerous Windows devices worldwide. The issue was not the result of a cyberattack but was instead caused by a flaw within the software update itself.

The repercussions of this failure were immediate and widespread. Industries ranging from banking to airlines faced outages, with services disrupted and, in some cases, TV broadcasters going offline. The travel sector was particularly hard hit, with planes grounded and services delayed, causing travel chaos.

What is notable about CrowdStrike's software is its endpoint security approach, which applies cyber protections to devices connected to the internet, as opposed to back-end server systems. This means that when an update goes awry, it has the potential to affect every machine that has the software installed. In this case, the faulty update impacted a significant number of devices given CrowdStrike's extensive client base, which includes many Fortune 500 companies and various government agencies.

A reminder of infrastructural deficiencies

The incident serves as a stark reminder of the fragility of the IT systems that the world relies on. It underscores the need for rigorous testing and backup systems to prevent such widespread disruptions. Moreover, it highlights the importance of swift and transparent communication from companies like CrowdStrike when such incidents occur.

In response to the crisis, CrowdStrike has rolled back the update and is working on a fix to bring systems back online. The company's CEO, George Kurtz, has issued an apology for the disruption and assured that they are working closely with affected clients to resolve the issues.

As businesses and organizations begin to recover, the event will likely prompt a reevaluation of current cybersecurity practices and the implementation of more robust safeguards to protect against similar incidents in the future. The CrowdStrike system failure is a cautionary tale of how a single software update can have far-reaching consequences in our interconnected digital world.

Previous infrastructural meltdowns revisited

This is far from the first time that a faulty update to software has hobbled the nation. AT&T (or companies using that name) have experienced major outages at least twice. In 1990, bad code loaded into the digital switching systems across the country disabled all long distance calling across the nation. In the end, that issue came from code pushed to production without proper testing. Earlier this year, AT&T mobile service went offline again because of a software update issue.

In 2010, computers across the world shutdown, similar to what we experienced this week. The issue was because of a faulty update sent out by another cyber security company - McAfee. The update, known as "DAT" file version 5958, caused Windows XP computers to meltdown just like this week's CrowdStrike collapse. Interestingly, the CTO of McAfee at the time of this mistake was George Kurtz, who is today the founder and CEO of CrowdStrike. This is not necessarily an indicator that Kurtz runs a ship with no rules, but it will likely make corporations think twice about relying on software developed under his tutelage.

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It's been a strange couple of weeks for videogame streaming. It started with Microsoft announcing a shuffling of the Xbox Game Pass system, including another price increase. Then, Nvidia announced a price decrease (at least temporarily) on GeForce Now, possibly as a tease aimed at Microsoft. But, then a strange announcement that Xbox could launch GeForce Now games from the website, thanks to a new partnership.

Game Pass pricing changes

Xbox Game Pass has been a revolutionary service in the gaming industry, offering a vast library of games for a monthly subscription fee. However, recent changes to the Game Pass pricing and tier levels have sparked discussions among gamers and industry experts alike. Let's delve into the latest adjustments and what they mean for subscribers.

Microsoft has announced a price increase for the Xbox Game Pass Ultimate, now set at $19.99 per month, marking a $5 increase from the previous rate. This change reflects the company's efforts to add more value to the service by expanding the game library and enhancing user experience.

A significant shift in the Game Pass structure is the introduction of new subscription tiers. The existing Game Pass for Console will be replaced by a new Standard tier, priced at $15 a month, which notably excludes access to Day One releases, EA Play, Game Pass for PC, and cloud gaming. This tier is designed for users who prefer a curated selection of games without the need for immediate access to new titles.

For those seeking the most comprehensive package, the Xbox Game Pass Ultimate remains the premium option. Despite the price hike, it includes all the benefits previously available, such as Day One game releases, access to EA Play, PC Game Pass, and cloud gaming. This tier caters to the most dedicated gamers who want to enjoy the full spectrum of Xbox services.

The restructuring of Game Pass tiers and pricing has raised concerns about consumer impact. The Federal Trade Commission (FTC) has pointed out that these changes could lead to consumer harm, a topic that has been under scrutiny since Microsoft's acquisition of Activision Blizzard. Game Pass was a major focus of the FTC during the approval process for the acquisition. These changes could cause issues for Microsoft with the FTC - two groups which have historically not been friends.

GeForce Now and Xbox team up

The gaming landscape is continuously evolving, and a significant development in this dynamic field is the extension of the relationship between Xbox and GeForce Now. This collaboration marks a pivotal moment, as it brings together two giants from the gaming hardware and cloud gaming service sectors.

Microsoft's Xbox has integrated Nvidia's GeForce Now into its game pages, allowing gamers to launch supported games on GeForce Now directly through Xbox.com. This integration is a result of a 10-year agreement between Microsoft and Nvidia, aiming to enhance the GeForce Now streaming service with a variety of releases, including popular titles like Forza Horizon, Minecraft, and the much-anticipated Starfield.

The partnership is a strategic move by Microsoft to diversify gaming experiences and provide more flexibility to gamers. It allows users to play their games across different devices, leveraging the cloud gaming technology of GeForce Now. This is particularly beneficial for those who do not own a high-end gaming PC or console, as they can still enjoy high-quality gaming experiences through streaming.

Moreover, this collaboration is a response to the growing demand for accessible gaming options and reflects Microsoft's commitment to bringing Xbox and PC games to GeForce Now, as part of their efforts to navigate the regulatory challenges of their acquisition of Activision Blizzard.

The integration is a win-win for both companies and the gaming community. It enhances the value proposition of both Xbox and GeForce Now, providing a more seamless and integrated gaming experience. As the catalog of supported games expands, gamers can look forward to a broader range of titles to enjoy in the cloud.

As a way to celebrate the new relationship, or possibly to tease Microsoft for its own price increase, Nvidia has dropped the price of the service by 50%, for a limited time.

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If you have ever tried to sell a phone purchased directly from a carrier or tried to keep your phone while switching providers, you have likely experienced the process of unlocking that device. It can be an annoying process that can require going into a carrier store, as I recently had to do. However, the biggest challenge is that each carrier handles if and when you can unlock that device differently. That could all change, if a Federal Communication Commission proposal, which would require carriers to unlock devices at 60 days, goes through.

What is a locked phone?

A locked phone is a mobile device that is bound to a specific carrier's network through software restrictions. This means the phone can only operate with a SIM card and service from the carrier it is locked to. The software lock is implemented by the carrier to ensure the phone cannot be used on competing networks, which is often the case when the phone is sold at a subsidized price in exchange for a contract with the carrier.

Unlocked phones, on the other hand, do not have these software restrictions and can be used with any carrier's network, providing greater flexibility for the user. The main advantage of an unlocked phone is the ability to switch carriers without needing to purchase a new phone, which can be particularly beneficial for those who travel internationally or wish to change providers for better rates or services.

How carriers handle unlocking phones

In the United States, the policies regarding the unlocking of phones can vary significantly among wireless carriers. Unlocking a phone enables it to be used on different carriers' networks, which can be particularly beneficial for customers looking to switch providers or use their phones internationally without incurring roaming charges.

The Federal Communications Commission (FCC) has been actively involved in ensuring consumers have the freedom to unlock their phones. According to the FCC, all service providers who have signed onto the CTIA Consumer Code for Wireless Service are obligated to unlock mobile devices upon request, provided certain conditions are met. These conditions typically include the fulfillment of the service contract, device financing plan, or payment of an applicable early termination fee.

FCC to the rescue, unifying the rules

A recent development from the FCC proposes a new rule that could standardize the unlocking process across carriers, requiring them to unlock phones within 60 days of activation. This move aims to enhance transparency and consumer freedom, allowing individuals to switch service providers more easily.

FCC Chairwoman Jessica Rosenworcel said,

You bought your phone, you should be able to take it to any provider you want. Some providers already operate this way. Others do not. In fact, some have recently increased the time their customers must wait until they can unlock their device by as much as 100 percent.

Currently, carriers like Verizon are required to unlock devices automatically due to agreements made during spectrum purchases. T-Mobile, following its acquisition of Sprint, allows users to unlock their device so long as it has been active for 40 days and is outside of financing restrictions. Rosenworcel, however, was referring to T-Mobile's prepaid brand Metro. Their policy recently changed from 180 days to 365 days post activation.

It's important for consumers to understand the terms and conditions of their mobile device contracts and to communicate with their service providers regarding unlocking policies. With the potential new FCC rule, the process of unlocking phones could become more streamlined and consumer-friendly, fostering greater competition and innovation among carriers.

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Once again, the fate of Paramount is up in the air. The company has struggled in recent years to catch on to modern television trends, perfect its streaming offerings, and produce and maintain programming. Either the company is stretching itself too thin, or they are in over their heads. As such, the company has looked at various options, including selling the company. Now, reports suggest that the goal is not so much to sell the entire company, but to find a company to merge their streaming operations with.

The modern struggles of Paramount

As the television industry has changed from appointment television on standard cable and broadcast channels to an on-demand streaming model, Paramount and its related brands have really struggled. Broadcast and cable viewership has declined, as it has across the industry. But, the company's streaming efforts have also struggled to find their location in the crowded market.

As a result, the company has been investigating ways to right the ship. The original approach was to sell the entire company as a whole. This would include brands like CBS, BET, and Comedy Central. Initially, conversations between Paramount and Warner Bros. Discovery (WBD) looked positive. WBD, the newly merged combination of WarnerMedia and Discovery, was interested in expanding its size and offerings once again, making itself and its MAX streaming service more attractive.

However, earlier this year, those discussions ended, leaving Paramount's fate in question. The possibility of these companies returning to the table for discussions in the future was high, as was the possibility of another buyer stepping up to the plate. While there have been rumors of other buyers having interest, including former executives, nothing has materialized.

Moving to a streaming merger

The new approach appears, according to insiders speaking to CNBC, to be an attempt to merge the Paramount+ streaming service with another service or finding a technology partner to improve the service.

The idea of a technology partner could make sense. The company has a strong history in content creation, but technology has never been a big focus. As such, allowing a technology company to help them beef up the parts of the business they have struggled with. But, with the condition of the service, it might be more difficult to find a partner who is interested in getting involved.

On the other hand, a streaming merger looks like a likely move. There are two obvious possibilities: Peacock and MAX. Peacock, owned by Comcast, has struggled less with its technology and more with its content catalog. Adding the Paramount+ content catalog could enhance its offerings and make it a more attractive service. Add to that the two brands have worked together a lot over the years on projects like Frasier, and the pairing could work.

However, the most likely possibility is MAX. The two companies have already had discussions over a full company merger, so the possibility of joining forces to enhance their streaming options is a big possibility. According to the report, the two companies have already entered discussions, so the possibilities are high that a combined catalog is in the future.

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