Tag: Netflix

The Curse of Bigness

 

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A portrait of Louis Brandeis on the cover of Time magazine on October 19, 1925.

Before he was an associate justice on the Supreme Court of the United States from 1916 to 1939, Louis Brandeis was a progressive lawyer fighting the big monopolies, or trusts, of Gilded Age America. He termed the corrosive effect on democracy of unrestrained business practices “The Curse of Bigness”, and after he joined the Supreme Court he maintained his interest in restraining business interests from trampling the rights of ordinary citizens.

Now President Biden has appointed Lina Khan to the chair of the Federal Trade Commission, and her appointment signals a return to the principles of Louis Brandeis. Lina Khan is an antitrust lawyer and legal scholar who, as a student at Yale Law School in 2017, wrote an article called Amazon’s Antitrust Paradox. The article drew widespread attention for her ideas about how the conventional wisdom of the past 50 or so years regarding regulation of the marketplace based on consumer prices no longer applied in the age of Amazon, a company willing to engage in predatory pricing and use vertical integration in order to stifle competition and monopolize the marketplace.

A profile of Lina Khan in Time from October 17, 2019.

 

Prior to Ms. Khan’s appointment, another antitrust lawyer and legal scholar, Tim Wu, joined the Biden administration as a Special Assistant to the President for Technology and Competition Policy on the National Economic Council. Mr. Wu is known for helping to write the first network neutrality rules in work for the Federal Communications Commission in 2006. In 2018, he wrote The Curse of Bigness: Antitrust in the New Gilded Age, a book which paid homage to Louis Brandeis and his antitrust work of the Progressive Era.

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A Climate Strike protester with an anti Bezos sign in London on February 14, 2020. Photo by Flickr user Socialist Appeal.

With these two people now in key positions in the federal government, perhaps efforts to rein in, or even bust up, big technology companies such as Amazon, Google, Apple, Facebook, and Microsoft, will finally be undertaken seriously and with persistence. In the past, these Big Five technology companies have largely escaped with slaps on the wrist after fitful investigations into their practices.


Supreme Court Justice Ruth Bader Ginsburg answered questions from Brandeis University students at an event in January 2016 commemorating the 100th anniversary of Louis Brandeis being nominated to the Supreme Court by President Woodrow Wilson.

 

As Louis Brandeis understood, and as is apparent from the writings of both Lina Khan and Tim Wu, setting regulatory boundaries for these behemoth businesses not only ensures they act fairly in the marketplace, but protects democracy from their tendency to squash individual liberties when they conflict with their self-interest. And the bigger and less competitive these companies become, the more their self-interest consumes everything in their vicinity, like a beast that can’t stop growing and must swallow anything in its way.
— Techly


An unofficial remix of the 2021 songs “Bezos I” and “Bezos II”, written and performed by Bo Burnham for his album and Netflix special, Bo Burnham:Inside. Warning: foul language.

 

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Changing Partners

 

Video subscription service Netflix is increasing prices across the board early this year as the company finances its ever increasing production of original content. For about 4 million customers who still receive discs by mail, down from a peak of about 20 million in 2010, being asked to pay more to subsidize internet streaming content they may not want or, in many cases, be able to access, is a bit dispiriting, as if Netflix has forgotten the wisdom of the old saying “Dance with them what brung you.”

 

For most of this decade, Netflix has continued its disc-by-mail service as a legacy option while it focused on its streaming service and on offering shows produced in house. Customer service remained excellent even as the catalog of older movies and television shows available on disc steadily diminished. The large catalog of content from the mid-twentieth century and earlier is where Netflix really shined ten or more years ago. Blockbuster never offered as much, even in its belated transformation to Blockbuster Online. Redbox has also never had much to offer customers interested in anything other than the latest releases. Filmstruck had an extensive catalog of older, less widely popular content, but it closed shop last year.

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Clipping of a news story from the May 4, 1928 edition of The Boston Post, announcing the start of television broadcasts by station WLEX in Lexington, Massachusetts.

For people in rural areas, streaming is often not an option because they have no broadband service or service that is limited either in speed or data usage. There are probably some Netflix customers who simply prefer a disc over streaming, but the majority of the remaining disc-by-mail customers are likely people for whom streaming is not a viable option. It has become a niche market, to be sure, and one that Netflix will sustain only as long as it generates enough profits to supply cash for the rest of its business. That window is closing.

Next generation television, which will increase the opportunity for local broadcasters to open more sub-channels offering niche content such as old movies and television shows, is at least another year away, and probably two or three before widespread adoption. Next generation television is a voluntary standard for broadcasters to send a 4K signal accompanied by internet data over updated and more expensive transmitters. Home viewers will need a 4K television as well as a next generation tuner, known as ATSC 3.0, and an internet router in order to take full advantage of the new broadcast technology. Viewers can still watch programs broadcast in 4K without setting up to receive the internet portion of the signal, though it’s not clear now if broadcasters will encrypt some of their signals to make them available on subscription or only for those who have enabled the internet signal.

Since the FCC has made the switch voluntary, broadcasters have much wider latitude in how they implement the new technology than they did during the transition from analog to digital, and the power of the new technology itself makes more options possible. The question is whether home viewers will tolerate the targeted advertising enabled by the internet portion of the signal, looking on it as no different than any other internet service.

Fahrenheit 451, the 1966 film adaptation by François Truffaut of Ray Bradbury’s novel, here with Julie Christie and Oskar Werner, is the kind of movie that all but disappeared from broadcast television lineups in the past 30 years. With the possibility of more sub-channels becoming available after the 4K broadcast rollout, perhaps broadcasters will once again air movies like this.

For people who already have SmartTVs and use them for internet streaming there will probably be no difficulty in adjusting; for those people in the niche market of getting their video entertainment by way of a disc in the mail and then being left to enjoy it in peace, having to cope with only minor nosiness about them on the Netflix website, the adjustment may be a step too far into creepiness. It will be interesting to see if next generation 4K broadcast television and its improved reception in rural areas, combined with a wider range of content, fills the gap being left by the general move toward internet streaming and, if it keeps broadcast television free, whether it will be an improvement over most of those services, though it is hard to imagine a local television station going as far as devoting a sub-channel to obscure art house films.
— Techly

 

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Cursing the Darkness

 

There are some people who are so afraid of change that they would rather curse the darkness of their current situation than light a candle to change it. Such people curse an onerously expensive Comcast or Charter cable television and internet bill and the infamously poor customer service of those companies, and yet when they are presented with alternatives they hem and haw and drag their feet about contacting a competitor to the large cable television and internet providers. Part of the problem is fear of change, and part of it is the desire to continue having all of everything, all at once.

 

People living in or near cities have choices of providers for their television and internet services, while choices for people living in the countryside are far more limited. Nevertheless, while choices may be limited, they are available to people everywhere in the United States who are willing to forego having daily access to obscure specialty channels on cable television or to hundreds of GigaBytes (GB) of data each month for streaming content over the internet. People have to be willing to give up the passivity of slouching on their couches and letting Comcast do everything for them. If that’s what they want, then fine, but don’t expect everyone else to be sympathetic to complaints about high monthly bills for lousy service. Curse the darkness to yourself if you’re unwilling to light a candle to help yourself.

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A waitress lighting candles in a bar in Paris, France, in 2008. Photo by Jorge Royan.

For everyone else, there is research to be done, most likely over the internet, a job for which it is very well suited. Research options for internet service providers other than the large companies. You may have to make sacrifices in one way or another when changing to a local, small scale provider, but that is part of cutting the cord. It’s like changing from buying most of your groceries at a national or regional chain grocer to buying them from a local farmers’ market or independent grocer. City dwellers will of course have more options when it comes to technology than country folks, but the important thing to realize is that there are options, as long as people ditch the idea of having all of everything done for them all at once.

The same thing applies to television service, which starts with cutting the cord without bothering to find a new cord provider. Get an antenna! Local television stations are adding digital subchannels every year, and receiving them with an antenna costs nothing. The two key things to remember in buying an antenna are that there is no such thing as a digital or high definition television antenna (an antenna is an antenna, built to receive electromagnetic frequencies regardless of whether the content of those signals is analog or digital), and that resolving digital television content requires a slightly more powerful antenna than in the old days of resolving analog content. Where a rabbit ears antenna may have done the job before, today an outdoor antenna may be necessary for adequate reception.

A nice story from the actor, Jamie Farr, about his early days struggling to make a living in Hollywood. Documentaries like this are much easier to find now on the internet than on cable television.

Some folks who are fortunate enough to have hundreds of GigaBytes of internet data available each month at a reasonable price can do away with cable or antenna television service altogether, and instead use their internet service for viewing television. Do your research! Ask questions of yourself first about what it is you watch most and can’t do without. How many different ways are there to receive that programming? Chances are there are multiple ways of receiving your favorite content, and continuing to rely solely on companies like Comcast and Charter is a disservice to yourself and a way of continuing to curse the darkness. To take documentaries – serious documentaries, that is, not Shark Week documentaries or anything involving Guy Fieri – as one example, it is obvious that cable television offerings have been replaced in the past ten years by what’s available for free on YouTube and by subscription on services such as Netflix. Don’t keep sitting in the dark – light a candle, just don’t expect it to vanquish all the shadows in your life.
— Techly

 

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