Netflix is becoming an ad-tech company

There was a time when streamers wooed potential customers with the promise of an ad-free experience. In recent years, however, companies such as Netflix, Amazon, Disney and more have hiked up their prices and made an ad-supported tier the most affordable option. Now, Netflix is taking the next step towards becoming a de-facto ad tech company by moving its development in-house, according to The Hollywood Reporter

Netflix announced the shift during its upfront preview, in which the company also shared that its $7 per month ad-supported tier has 40 million monthly active users. The ad-supported plan is reportedly getting 40 percent of new signups, with it having 15 million users just six months ago, in November. 

The streaming company has relied heavily on Microsoft to reach this success, partnering with the tech giant in 2022 on advertising and sales. But, the training wheels are coming off with Netflix's choice to move things in house, a choice that "will allow us to power the ads plan with the same level of excellence that’s made Netflix the leader in streaming technology today," Netflix ads chief Amy Reinhard said. Microsoft will also no longer be Netflix's sole ad tech partner, as the streamer will start working with companies like Google’s Display & Video 360 and The Trade Desk later this summer. 

This article originally appeared on Engadget at https://www.engadget.com/netflix-is-becoming-an-ad-tech-company-130004240.html?src=rss

Apple’s big AI rollout at WWDC will reportedly focus on making Siri suck less

Apple will reportedly focus its first round of generative AI enhancements on beefing up Siri’s conversational chops. Sources speaking with The New York Times say company executives realized early last year that ChatGPT made Siri look antiquated. The company allegedly decided that the large language model (LLM) principles behind OpenAI’s chatbot could give the iPhone’s virtual assistant a much-needed shot in the arm. So Apple will reportedly roll out a new version of Siri powered by generative AI at its WWDC keynote on June 10.

Apple Senior Vice Presidents Craig Federighi and John Giannandrea reportedly tested ChatGPT for weeks before the company realized that Siri looked outdated. (I would argue that the epiphany came about a decade late.) What followed was what The NYT describes as Apple’s “most significant reorganization in more than a decade.”

The company sees generative AI as a once-in-a-decade tentpole area worth shifting heaps of resources to address. You may recall the company canceled its $10 billion “Apple Car” project earlier this year. Apple reportedly reassigned many of those engineers to work on generative AI.

Apple executives allegedly fear AI models could eventually replace established software like iOS, turning the iPhone into “a dumb brick” by comparison. The clunky, awkward and overall unconvincing first wave of dedicated AI gadgets we’ve reviewed, like the Human AI Pin and Rabbit R1, aren’t good enough to pose a threat. But that could change as software evolves, other smartphone makers incorporate more AI into their operating systems and other hardware makers have a chance to innovate.

So, at least for now, it appears Apple isn’t launching direct competitors to generative AI stalwarts like ChatGPT (words), Midjourney (images) or ElevenLabs (voices). Instead, it will start with a new Siri and updated iPhone models with expanded memory to better handle local processing. In addition, the company will reportedly add a text-summarizing feature to the Messages app.

Apple’s John Ternus standing in front of a digital slide of the M4 chip.
Apple’s M4 chip (shown next to VP John Ternus) could help process local Siri requests.
Apple

Apple’s first foray into generative AI, if The NYT’s sources are correct, sounds like less of an immediate threat to creators than some had imagined. At its May iPad event, the company ran a video plugging the new iPad Pro that showed various creative tools crushed by a hydraulic press. The clip accidentally served as the perfect metaphor for the (legitimate) fears of artists, musicians and other creators, whose work AI models have trained on — and who stand to be replaced by those same tools as they become more normalized for content creation.

On Thursday, Apple apologized for the ad and said it canceled plans to run it on TV. 

Samsung and Google have already loaded their flagship phones with various generative AI features that go far beyond improving their virtual assistants. These include tools for editing photos, generating text and enhancing transcription (among other things). These features typically rely on cloud-based servers for processing, whereas Apple’s approach will allegedly prioritize privacy and handle requests locally. So Apple will apparently start with a more streamlined approach that sticks to improving what’s already there, as well as keeping most or all processing on-device.

The New York Times’ sources add that Apple’s culture of internal secrecy and privacy-focused marketing have stunted its AI progress. Former Siri engineer John Burkey told the paper that the company’s tendency to silo off the information various divisions share with each other has been another primary culprit in Siri’s inability to evolve far past where the assistant was when it launched a day before Steve Jobs died in 2011.

This article originally appeared on Engadget at https://www.engadget.com/apples-big-ai-rollout-at-wwdc-will-reportedly-focus-on-making-siri-suck-less-203035673.html?src=rss

OpenAI partners with People publisher Dotdash Meredith

OpenAI is partnering with another publisher as it moves towards a licensed approach to training materials. Dotdash Meredith, the owner of brands like People and Better Homes & Gardens, will license its content for OpenAI to train ChatGPT while the publisher will use the AI company’s models to boost its in-house ad-targeting tool.

As part of the arrangement, ChatGPT will display content and links attributed to Dotdash Meredith’s publications. It also provides OpenAI with fully licensed training material from trusted publications.

That’s a welcome change after the company got in hot water for allegedly using content for training purposes without permission. The New York Times and Alden Capital Group (owner of The Chicago Tribune, New York Daily News and the Orlando Sentinel) have sued the ChatGPT maker, accusing it of using its content without permission. Comedian Sarah Silverman and a conspiracy-mongering car salesman (the latter for different reasons) have, too.

“We have not been shy about the fact that AI platforms should pay publishers for their content and that content must be appropriately attributed,” Neil Vogel, Dotdash Meredith CEO, wrote in a press release. “This deal is a testament to the great work OpenAI is doing on both fronts to partner with creators and publishers and ensure a healthy Internet for the future.”

Before the Dotdash Meredith deal, OpenAI struck an agreement with The Financial Times. “It is right, of course, that AI platforms pay publishers for the use of their material,” the paper’s CEO, John Ridding, said in a statement last month.

Dotdash Meredith, which also owns Investopedia, Food & Wine, InStyle and Verywell, will use OpenAI’s models to supercharge its D/Cipher ad-targeting tool. The publisher says its advertising system “connects advertisers directly to consumers based on the context of content being consumed, without using personal identifiers like cookies.” That’s an industry-wide shift on the horizon, as Google is moving to a cookie-less future — albeit later than initially advertised.

This article originally appeared on Engadget at https://www.engadget.com/openai-partners-with-people-publisher-dotdash-meredith-212832821.html?src=rss

Google prohibits ads promoting websites and apps that generate deepfake porn

Google has updated its Inappropriate Content Policy to include language that expressly prohibits advertisers from promoting websites and services that generate deepfake pornography. While the company already has strong restrictions in place for ads that feature certain types of sexual content, this update leaves no doubt that promoting "synthetic content that has been altered or generated to be sexually explicit or contain nudity" is in violation of its rules. 

Any advertiser promoting sites or apps that generate deepfake porn, that show instructions on how to create deepfake porn and that endorse or compare various deepfake porn services will be suspended without warning. They will no longer be able to publish their ads on Google, as well. The company will start implementing this rule on May 30 and is giving advertisers the chance to remove any ad in violation of the new policy. As 404 Media notes, the rise of deepfake technologies has led to an increasing number of ads promoting tools that specifically target users wanting to create sexually explicit materials. Some of those tools reportedly even pretend to be wholesome services to be able to get listed on the Apple App Store and Google Play Store, but it's masks off on social media where they promote their ability to generate manipulated porn. 

Google has, however, already started prohibiting services that create sexually explicit deepfakes in Shopping ads. Similar to its upcoming wider policy, the company has banned Shopping ads for services that "generate, distribute, or store synthetic sexually explicit content or synthetic content containing nudity. " Those include deepfake porn tutorials and pages that advertise deepfake porn generators. 

This article originally appeared on Engadget at https://www.engadget.com/google-prohibits-ads-promoting-websites-and-apps-that-generate-deepfake-porn-130059324.html?src=rss

Google prohibits ads promoting websites and apps that generate deepfake porn

Google has updated its Inappropriate Content Policy to include language that expressly prohibits advertisers from promoting websites and services that generate deepfake pornography. While the company already has strong restrictions in place for ads that feature certain types of sexual content, this update leaves no doubt that promoting "synthetic content that has been altered or generated to be sexually explicit or contain nudity" is in violation of its rules. 

Any advertiser promoting sites or apps that generate deepfake porn, that show instructions on how to create deepfake porn and that endorse or compare various deepfake porn services will be suspended without warning. They will no longer be able to publish their ads on Google, as well. The company will start implementing this rule on May 30 and is giving advertisers the chance to remove any ad in violation of the new policy. As 404 Media notes, the rise of deepfake technologies has led to an increasing number of ads promoting tools that specifically target users wanting to create sexually explicit materials. Some of those tools reportedly even pretend to be wholesome services to be able to get listed on the Apple App Store and Google Play Store, but it's masks off on social media where they promote their ability to generate manipulated porn. 

Google has, however, already started prohibiting services that create sexually explicit deepfakes in Shopping ads. Similar to its upcoming wider policy, the company has banned Shopping ads for services that "generate, distribute, or store synthetic sexually explicit content or synthetic content containing nudity. " Those include deepfake porn tutorials and pages that advertise deepfake porn generators. 

This article originally appeared on Engadget at https://www.engadget.com/google-prohibits-ads-promoting-websites-and-apps-that-generate-deepfake-porn-130059324.html?src=rss

Google says Epic’s Play Store demands are too much and too self-serving

Epic Games won its antitrust lawsuit against Google in December when a federal jury found that the latter violated US antitrust laws with regards to how it runs the Play Store. A few months later, the gaming developer submitted its list of demands, which if implemented will blow the Play Store wide open. Now, Google has filed an injunction telling the court that no, it will not give Epic what it wants without a fight, because the company's asks "stray far beyond the trial record." 

The remedies Epic had submitted would require the court not just to create a global regulatory regime to set prices for apps, Google wrote in the filing as seen by Engadget, but also to micromanage "a highly complex and dynamic ecosystem" used by billions of consumers and app developers around the world. If you'll recall, Epic wants Google to open up Android to third-party app stores and to make its catalog of apps available to those stores. It also wants restrictions on pre-installed apps to be outlawed and to prohibit any Google activity that incentivizes third-parties. 

Google said that bowing down to all those demands would "effectively prevent [it] from competing," which in turn would negatively affect Android users and developers. Epic's proposals only benefit Epic, Google said in its filing, and will harm other developers by depriving them of control over where their app is distributed. Manufacturers will no longer be able to take advantage of the partnerships Google typically offers, while users have to deal with additional security and privacy risks. 

The company also slammed Epic over the "vagueness" of its proposed injunction, which would require the repeated and ongoing intervention of the courts. Similarly, Epic's demands would apparently require the court to micromanage Google's business. 

"Epic’s demands would harm the privacy, security, and overall experience of consumers, developers, and device manufacturers," Wilson White, Google's Vice President of Government Affairs & Public Policy, told Engadget in a statement. "Not only does their proposal go far beyond the scope of the recent US trial verdict — which we will be challenging — it’s also unnecessary due to the settlement we reached last year with State Attorneys General from every state and multiple territories. We will continue to vigorously defend our right to a sustainable business model that enables us to keep people safe, partner with developers to innovate and grow their businesses, and maintain a thriving Android ecosystem for everyone."

Google said that if Epic truly wants to promote competition rather than create "an unfair, court- supervised advantage for itself," then it would take cues from its settlement with the state officials that previously accused the company of abusing its dominance on Android app distribution. Epic Games CEO Tim Sweeney was, unsurprisingly, unhappy with that settlement, tweeting at the time: "If Google is ending its payments monopoly without imposing a Google Tax on third party transactions, we'll settle and be Google's friend in their new era. But if the settlement merely pays off the other plaintiffs while leaving the Google Tax in place, we'll fight on. Consumers only benefit if antitrust enforcement not only opens up markets, but also restores price competition."

This article originally appeared on Engadget at https://www.engadget.com/google-says-epics-play-store-demands-are-too-much-and-too-self-serving-123023699.html?src=rss

Microsoft and OpenAI sued yet again by Chicago Tribune and New York Daily News

A group of publications that include the Chicago Tribune, New York Daily News and the Orlando Sentinel are suing Microsoft and OpenAI, as reported by The Verge. The eight publications in this particular lawsuit, all owned by Alden Capital Group (ACG), are accusing the companies of "purloining millions" of their copyrighted articles "without permission and without payment to fuel the commercialization of their generative artificial intelligence products, including ChatGPT and Copilot." 

This is but the latest lawsuit filed against Microsoft and OpenAI for their use of copyrighted materials without express consent from publishers. The New York Times also famously sued the companies late last year, alleging that they've used "almost a century's worth of copyrighted content." Their products can regurgitate Times' articles verbatim and can "mimic its expressive style," the publication said, even though they didn't have a prior licensing agreement. In a motion seeking to dismiss key parts of the lawsuit, Microsoft accused the Times of doomsday futurology by claiming that generative AI can pose a threat to independent journalism. 

ACG's newspapers complain of the same thing, that the companies' chatbots are reproducing their articles word-for-word shortly after they're published without a prominent link back to the sources. They included several examples in their complaint. In addition, the chatbots are apparently suffering from hallucinations and are attributing inaccurate reporting to ACG's publications. The publisher argued that the defendants pay for the computers, the specialized chips and the electricity they use to build and operate their generative AI products. And yet they're using copyrighted articles "without permission and without paying for the privilege" even though they need content to train their large language models. The plaintiffs referenced OpenAI's previous admission that it would be "impossible to train today's leading AI models without using copyrighted materials."

OpenAI is no longer a non-profit company, the plaintiffs said, and is now valued at $90 billion. Meanwhile, ChatGPT and Copilot have added "hundreds of billions of dollars to Microsoft's market value." The publications are seeking an unspecified amount in damages and are asking the court to order the defendants to destroy GPT and LLM models that use their materials. 

This article originally appeared on Engadget at https://www.engadget.com/microsoft-and-openai-sued-yet-again-by-chicago-tribune-and-new-york-daily-news-085501073.html?src=rss

FCC fines America’s largest wireless carriers $200 million for selling customer location data

The Federal Communications Commission has slapped the largest mobile carriers in the US with a collective fine worth $200 million for selling access to their customers' location information without consent. AT&T was ordered to pay $57 million, while Verizon has to pay $47 million. Meanwhile, Sprint and T-Mobile are facing a penalty with a total amount of $92 million together, since the companies had merged two years ago. The FCC conducted an in-depth investigation into the carriers' unauthorized disclosure and sale of subscribers' real-time location data after their activities came to light in 2018.

To sum up the practice in the words of FCC Commissioner Jessica Rosenworcel: The carriers sold "real-time location information to data aggregators, allowing this highly sensitive data to wind up in the hands of bail-bond companies, bounty hunters, and other shady actors." According to the agency, the scheme started to unravel following public reports that a sheriff in Missouri was tracking numerous individuals by using location information a company called Securus gets from wireless carriers. Securus provides communications services to correctional facilities in the country. 

While the carriers eventually ceased their activities, the agency said they continued operating their programs for a year after the practice was revealed and after they promised the FCC that they would stop selling customer location data. Further, they carried on without reasonable safeguards in place to ensure that the legitimate services using their customers' information, such as roadside assistance and medical emergency services, truly are obtaining users' consent to track their locations. 

The companies told Fast Company that they intend to challenge the fines. T-Mobile, which faces the biggest penalty worth $80 million — Sprint was fined $12 million — said it was excessive. AT&T said the decision lacked "both legal and factual merit" and that the decision "perversely punishes [the companies] for supporting life-saving location services."

This article originally appeared on Engadget at https://www.engadget.com/fcc-fines-americas-largest-wireless-carriers-200-million-for-selling-customer-location-data-121246900.html?src=rss

FCC fines America’s largest wireless carriers $200 million for selling customer location data

The Federal Communications Commission has slapped the largest mobile carriers in the US with a collective fine worth $200 million for selling access to their customers' location information without consent. AT&T was ordered to pay $57 million, while Verizon has to pay $47 million. Meanwhile, Sprint and T-Mobile are facing a penalty with a total amount of $92 million together, since the companies had merged two years ago. The FCC conducted an in-depth investigation into the carriers' unauthorized disclosure and sale of subscribers' real-time location data after their activities came to light in 2018.

To sum up the practice in the words of FCC Commissioner Jessica Rosenworcel: The carriers sold "real-time location information to data aggregators, allowing this highly sensitive data to wind up in the hands of bail-bond companies, bounty hunters, and other shady actors." According to the agency, the scheme started to unravel following public reports that a sheriff in Missouri was tracking numerous individuals by using location information a company called Securus gets from wireless carriers. Securus provides communications services to correctional facilities in the country. 

While the carriers eventually ceased their activities, the agency said they continued operating their programs for a year after the practice was revealed and after they promised the FCC that they would stop selling customer location data. Further, they carried on without reasonable safeguards in place to ensure that the legitimate services using their customers' information, such as roadside assistance and medical emergency services, truly are obtaining users' consent to track their locations. 

The companies told Fast Company that they intend to challenge the fines. T-Mobile, which faces the biggest penalty worth $80 million — Sprint was fined $12 million — said it was excessive. AT&T said the decision lacked "both legal and factual merit" and that the decision "perversely punishes [the companies] for supporting life-saving location services."

This article originally appeared on Engadget at https://www.engadget.com/fcc-fines-americas-largest-wireless-carriers-200-million-for-selling-customer-location-data-121246900.html?src=rss

Google asks court to reject the DOJ’s lawsuit that accuses it of monopolizing ad tech

Google filed a motion on Friday in a Virginia federal court asking for the Department of Justice’s antitrust lawsuit against it to be thrown away. The DOJ sued Google in January 2023, accusing the company of monopolizing digital advertising technologies through “anticompetitive and exclusionary conduct.” Per Bloomberg, Google is now seeking summary judgment to avoid the case going to trial in September as planned.

Attorney General Merrick B. Garland said at the time the lawsuit was first announced that Google “has used anticompetitive, exclusionary, and unlawful conduct to eliminate or severely diminish any threat to its dominance over digital advertising technologies.” The lawsuit alleges that Google controls digital advertising tools to such an extent that it “pockets on average more than 30 percent of the advertising dollars that flow through its digital advertising technology products,” according to a press release from the agency last year.

Google now argues that that the DOJ hasn’t shown that the company controls at least 70 percent of the market, which some previous cases have used as the threshold for qualifying as a monopoly, and that the agency “made up markets specifically for this case,” according to Bloomberg, excluding its major competitors like social media platforms. The company also claims the DOJ’s case goes “beyond the boundaries of antitrust law,” Reuters reports.

This article originally appeared on Engadget at https://www.engadget.com/google-asks-court-to-reject-the-dojs-lawsuit-that-accuses-it-of-monopolizing-ad-tech-183830791.html?src=rss