Artists and other creators say their works have been used to build the multibillion-dollar generative AI industry without any compensation for them. Matt Dibble reports on a proposed U.S. law that would force AI companies to reveal their sources.
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A drone equipped with a painting hose is being deployed against stubborn graffiti in hard-to-reach areas. Natasha Mozgovaya has more in this week’s episode of LogOn.
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LOS GATOS, California — Although its video streaming service sparkles with a Hollywood sheen, Netflix still taps its roots in Silicon Valley to stay a step ahead of traditional TV and movie studios.

The Los Gatos, California, company, based more than 300 miles away from Hollywood, frequently reaches into its technological toolbox without viewers even realizing it. It often just uses a few subtle twists on the knobs of viewer recommendations to help keep its 270 million worldwide subscribers satisfied at a time when most of its streaming rivals are seeing waves of cancelations from inflation-weary subscribers.

Even when hit TV series like “The Crown” or “Bridgerton” have wide appeal, Netflix still tries to cater to the divergent tastes of its vast audience. One part of that recipe includes tailoring summaries and trailers about its smorgasbord of shows to fit the personal interests of each viewer.

So, someone who likes romance might see a plot summary or video trailer for “The Crown” highlighting the relationship between Princess Diana and Charles, while another viewer more into political intrigue may be shown a clip of Queen Elizabeth in a meeting with Margaret Thatcher.

For an Oscar-nominated film like “Nyad,” a lover of action might see a trailer of the title character immersed in water during one of her epic swims, while a comedy fan might see a lighthearted scene featuring some amusing banter between the two stars, Annette Bening and Jodie Foster.

Netflix is able to pull off these variations through the deep understanding of viewing habits it gleans from crunching the data from subscribers’ histories with its service — including those of customers who signed up in the late 1990s when the company launched with a DVD-by-mail service that continued to operate until last September.

“It is a secret sauce for us, no doubt,” Eunice Kim, Netflix’s chief product officer, said while discussing the nuances of the ways Netflix tries to reel different viewers into watching different shows. “The North Star we have every day is keep people engaged, but also make sure they are incredibly satisfied with their viewing experiences.”

As part of that effort, Netflix is rolling out a redesign of the home page that greets subscribers when they are watching the streaming service on a TV screen. The changes are meant to package all the information that might appeal to a subscriber’s tastes in a more concise format to reduce the “gymnastics with their eyes,” said Patrick Flemming, Netflix’s senior director of member product.

What Netflix is doing with its previews may seem like a small thing, but it can make a huge difference, especially as people looking to save money start to limit the number of streaming services they have.

Last year, video streaming services collectively suffered about 140 million account cancelations, a 35% increase from 2022 and nearly triple the volume in 2020, when the COVID-19 pandemic created a boom in demand for entertainment from people corralled at home, according to numbers compiled by the research firm Antenna.

Netflix doesn’t disclose its cancelation, or churn rate, but last year its streaming service gained 30 million subscribers — marking its second-biggest annual increase behind its own growth spurt during the 2020 pandemic lockdowns.

Part of last year’s subscription growth flowed from a crackdown on viewers who had been freeloading off Netflix subscribers who shared their account passwords. But the company is also benefiting from the technological know-how that helps it to keep funneling shows to customers who like them and make them think the service is worth the money, according to J. Christopher Hamilton, an assistant professor of television, radio and film at Syracuse University.

“What they have been doing is pretty ingenious and very, very strategic,” Hamilton said. “They are definitely ahead of the legacy media companies who are trying to do some of the same things but just don’t have the level of sophistication, experience nor the history of the data in their archives.”

Netflix’s nerdy heritage once was mocked by an entertainment industry that looked down at the company’s geekdom.

Not long after that put-down, Netflix began mining its viewing data to figure out how to produce a slate of original programming that would attract more subscribers — an ambitious expansion that forced Time Warner (now rolled into Warner Bros. Discovery) and other long-established entertainment companies such as Walt Disney Co. into a mad scramble to build their own streaming services.

Although those expansions initially attracted hordes of subscribers, they also resulted in massive losses that have resulted in management shakeups and drastic cutbacks, including the abrupt closure of a CNN streaming service. 

What Netflix is doing with technology to retain subscribers to boost its fortunes — the company’s profit rose 20% to $5.4 billion last year — now is widening the divide with rival services still trying to stanch their losses.

Disney’s 4-year-old streaming service recently became profitable after an overhaul engineered by CEO Bob Iger, but he thinks more work will be required to catch up with Netflix.

Netflix isn’t going to help its rivals by divulging its secrets, but the slicing and dicing generally starts with getting a grasp on which viewers tend to gravitate to certain genres — the broad categories include action, adventure, anime, fantasy, drama, horror, comedy, romance and documentary — and then diving deeper from there.

In some instances, Netflix’s technology will even try to divine a viewer’s mood at any given time by analyzing what titles are being browsed or clicked on. In other instances, it’s relatively easy for the technology to figure out how to make a film or TV series as appealing as possible to specific viewers.

If Netflix’s data shows a subscriber has watched a lot of Hindi productions, it would be almost a no-brainer to feature clips of Bollywood actress Alia Bhatt in a role she played in the U.S. film, “Heart of Stone” instead of the movie’s lead actress, Gal Gadot.
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WESTPORT, Connecticut — Kate Bulkeley’s pledge to stay off social media in high school worked at first. She watched the benefits pile up: She was getting excellent grades. She read lots of books. The family had lively conversations around the dinner table and gathered for movie nights on weekends.

Then, as sophomore year got under way, the unexpected problems surfaced. She missed a student government meeting arranged on Snapchat. Her Model U.N. team communicates on social media, too, causing her scheduling problems. Even the Bible Study club at her Connecticut high school uses Instagram to communicate with members.

Gabriela Durham, a high school senior in Brooklyn, says navigating high school without social media has made her who she is today. She is a focused, organized, straight-A student. Not having social media has made her an “outsider,” in some ways. That used to hurt; now, she says, it feels like a badge of honor.

With the damaging consequences of social media increasingly well documented, many parents are trying to raise their children with restrictions or blanket bans. Teenagers themselves are aware that too much social media is bad for them, and some are initiating social media “cleanses” because of the toll it takes on mental health and grades.

This is a tale of two families, social media and the ever-present challenge of navigating high school. It’s about what kids do when they can’t extend their Snapstreaks or shut their bedroom doors and scroll through TikToks past midnight. It’s about what families discuss when they’re not having screen-time battles. It’s also about persistent social ramifications.

The journeys of both families show the rewards and pitfalls of trying to avoid social media in a world that is saturated by it.

Concerns about children and phone use are not new. But there is a growing realization among experts that the COVID-19 pandemic fundamentally changed the relationship kids have with social media. As youth coped with isolation and spent excessive time online, the pandemic effectively carved out a much larger space for social media in the lives of American children.

Social media is where many kids turn to forge their emerging identities, to seek advice, to unwind and relieve stress. In this era of parental control apps and location tracking, social media is where this generation is finding freedom.

It is also increasingly clear that the more time youth spend online, the higher the risk of mental health problems.

Kids who use social media for more than three hours a day face double the risk of depression and anxiety, according to studies cited by U.S. Surgeon General Vivek Murthy, who issued an extraordinary public warning last spring about the risks of social media to young people.

The Bulkeleys and Gabriela’s mother, Elena Romero, both set strict rules starting when their kids were young and still in elementary school. They delayed giving phones until middle school and declared no social media until 18. They educated the girls, and their younger siblings, on the impact of social media on young brains, on online privacy concerns, on the dangers of posting photos or comments that can come back to haunt you.

At school, on the subway and at dance classes around New York City, Gabriela is surrounded by reminders that social media is everywhere — except on her phone.

Growing up without it has meant missing out on things. Everyone but you gets the same jokes, practices the same TikTok dances, is up on the latest viral trends. When Gabriela was younger, that felt isolating; at times, it still does. But now, she sees not having social media as freeing.

“From my perspective, as an outsider,” she says, “it seems like a lot of kids use social media to promote a facade. And it’s really sad.”

There is also friend drama on social media and a lack of honesty, humility and kindness that she feels lucky to be removed from.

Gabriela is a dance major at the Brooklyn High School of the Arts. Senior year got intense with college and scholarship applications capped by getting to perform at Broadway’s Shubert Theatre in March as part of a city showcase of high school musicals.

“My kids’ schedules will make your head spin,” Romero says. On school days, they’re up at 5:30 a.m. and out the door by 7. Romero drives the girls to their three schools scattered around Brooklyn, then takes the subway into Manhattan, where she teaches mass communications at the Fashion Institute of Technology.

In New York City, it’s common for kids to get phones early in elementary school, but Romero waited until each daughter reached middle school and started taking public transportation home alone.

In the upscale suburb of Westport, Connecticut, the Bulkeleys have faced questions about bending their rules. But not for the reason they had anticipated.

Kate was perfectly content to not have social media. Her parents figured at some point she might resist their ban because of peer pressure or fear of missing out. But the 15-year-old sees it as a waste of time. She describes herself as academic, introverted and focused on building up extracurricular activities.

That’s why she needed Instagram.

“I needed it to be co-president of my Bible Study Club,” Kate explains.

As Kate’s sophomore year started, she told her parents that she was excited to be leading a variety of clubs but needed social media to do her job. “It was the school that really drove the fact that we had to reconsider our rule about no social media,” says Steph Bulkeley, Kate’s mother.

Schools talk the talk about limiting screen time and the dangers of social media, says her dad, Russ Bulkeley. But technology is rapidly becoming part of the school day. Kate’s high school and their 13-year-old daughter Sutton’s middle school have cell phone bans that aren’t enforced. Teachers will ask them to take out their phones to photograph material during class time.

The Bulkeleys aren’t on board with that but feel powerless to change it.

Ultimately they gave in to Kate’s plea for Instagram because they trust her, and because she’s too busy to devote much time to social media.
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WASHINGTON AND LONDON — Three U.S. lawmakers have called for more scrutiny of NewsBreak, a popular news aggregation app in the United States, after Reuters reported it has Chinese origins and has used artificial intelligence tools to produce erroneous stories.

The Reuters story drew upon previously unreported court documents related to copyright infringement, cease-and-desist emails and a 2022 company memo registering concerns about “AI-generated stories” to identify at least 40 instances in which NewsBreak’s use of AI tools affected the communities it strives to serve.

“The only thing more terrifying than a company that deals in unchecked, artificially generated news, is one with deep ties to an adversarial foreign government,” said Senator Mark Warner, a Democrat who chairs the Intelligence Committee.

“This is yet another example of the serious threat posed by technologies from countries of concern. It’s also a stark reminder that we need a holistic approach to addressing this threat — we simply cannot win the game of whack-a-mole with individual companies,” he said.

The lawmakers expressed concerns about NewsBreak’s current and historical links to Chinese investors, as well as the company’s presence in China, where many of its engineers are based.

In response to a request from Reuters for comment about the lawmakers’ statements, NewsBreak said it was an American company: “NewsBreak is a U.S. company and always has been. Any assertion to the contrary is not true,” a spokesperson said.

NewsBreak launched in the U.S. in 2015 as a subsidiary of Yidian, a Chinese news aggregation app. Both companies were founded by Jeff Zheng, the CEO of NewsBreak, and the companies share a U.S. patent registered in 2015 for an “Interest Engine” algorithm, which recommends news content based on a user’s interests and location, Reuters reported.

Yidian in 2017 received praise from ruling Communist Party officials in China for its efficiency in disseminating government propaganda. Reuters found no evidence that NewsBreak censored or produced news that was favorable to the Chinese government.

“This report brings to light serious questions about NewsBreak, its historical relationship with an entity that assisted the CCP, and to Chinese state-linked media,” said Representative Raja Krishnamoorthi, the top Democrat on the House select committee on China, in a reference to Yidian and its former investor, state-linked media outlet Phoenix New Media.

Americans have the right to “full transparency” about any connections to the CCP from news distributors, Krishnamoorthi said, particularly with regard to the use of “opaque algorithms” and artificial intelligence tools to produce news.

Reuters reported the praise Yidian received from the Communist Party in 2017 but was unable to establish that NewsBreak has any current ties with the party.

U.S. Representative Elise Stefanik, a Republican, said IDG Capital’s backing of NewsBreak indicated the app “deserves increased scrutiny.”

“We cannot allow our foreign adversaries access to American citizen’s data to weaponize them against America’s interests,” she said.

NewsBreak is a privately held start-up, whose primary backers are private equity firms San Francisco-based Francisco Partners and Beijing-based IDG Capital, Reuters reported. In February, IDG Capital was added to a list of dozens of Chinese companies the Pentagon said were allegedly working with Beijing’s military.

IDG Capital has previously said it has no association with the Chinese military and does not belong on that list. It declined to comment on the lawmaker’s reaction.

A spokesperson for Francisco Partners, which has previously declined to answer questions from Reuters on their investment in NewsBreak, described the story as “false and misleading” but declined to provide details beyond saying the description of them as a “primary backer” of NewsBreak was incorrect because their investment was less than 10%.

They did not provide documentation to prove the size of the holding. NewsBreak has told Reuters as recently as May 13 that Francisco Partners is NewsBreak’s primary investor. NewsBreak did not respond to two requests late Friday asking for documentation supporting the assertion.
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